tv Worldwide Exchange CNBC March 6, 2019 5:00am-6:00am EST
former nissan chairman carlos ghosn out of jail he was released from a japanese prison more on this developing story straight ahead hitting the brakes the transports on the brink of doing something they haven't done in nearly ten years we'll tell you what that is and how it could have a big impact on your money. fda chief scott gotlieb is calling it quits a big money grab one of the world's largest ride
hailing companies just locked in a huge round of funding. we have full details ahead it's wednesday, march 6th, and worldwide exchange begins right now. good morning welcome to "worldwide exchange i'm contessa brewer in for brian sullivan today we begin with breaking news. after more than three months behind bars, former nissan chairman carlos ghosn is out of jail he was released from a japanese prison overnight after posting bail it's the scene outside the jail. you can see him walking out where ghosn was being held since november the auto executive put up nearly $9 million in bail in exchange for this release, where he has to surrender his passport and stay in japan and, and he will be living in a house that's approved by the japanese government carlos ghosn was arrested in
november for allegedly underreporting his compensation. ghosn calls those charges meritless. we'll continue to follow the latest developments on the story. let's get you up to speed on what's happening in the markets right now. futures are pointing to a lower open on wall street. you can see the dow futures off by 34 points at this point overseas right now we have full team coverage of the latest action dow jones industrials and s&p they're following suit, too, but juliana is standing by in our london newsroom. let's get started with the overnight moves in asia. matt taylor in singapore for us. what's happening in asia >> mostly a mixed session. we did see some of the big markets tracking lower across our asia today the nikkei trade down. of course, nissan and carlos ghosn, you are just referencing that story the big one there, china markets were really the stand-out performer today, of course, on
those stimulus hopes yes, they've cut their growth expectations, but premier league and china at the mpc, of course, announcing stimulus measures, cutting taxes, spending on in a infrastructure that's really spurred on the asian markets. the shanghai composite up by 1.6% another very strong day of gains that we did see there. that now makes it two days of strong gains hong kong up by about .2%. another market that we were watching today is australia. up by about three-quarters of 1% we did get gdp numbers out of australia today, and that pushed t the australian dollar down weaker dollar supporter for australian equity. we saw a gain of three-quarters of 1% of the close in terms of growth, really stalling in the fourth quarter of 2018. quarter on quarter growth was up by .2% the print coming in at 2.3% on year, which was well below expectations off the start of 2018 where we saw growth levels of more than
3%, 3.1%, 3.4% the big stories in asia today. china markets definitely the outperformer again contessa, back to you. >> all right, matt thank you for that let's switch gears and head to europe juliana is in london now at the moment we are seeing mixed moves here in europe italian stocks performing well wrrks the ftse 100 tipping between positive and negative territory while the dax and cac are trading lower. now, investors here are processing chooirn's new lower growth targets as we just heard from our asian colleagues as well as their pledge of more stimulus.
that sector being dragged gown by one stock in particular schaffler, they have come out with some negative earnings, but more importantly, have said that 2019 is set to be an extremely challenging year the top of the leaderboard, basic -- that china-sensitive sector with that, back to you >> some disappointing news for those who were hoping for some kind of negotiated deal on brexit can you bring us up to speed on where we stand >> well, still a huge amount of uncertainty for brexit, and over the last 24 hours or so, we have seen sterling come down to about a one-woke low, so investors very closely watching developments there, but it certainly remains a very uncertain question, and the clouds remain over sterling in particular that's dictating a lot of the moves that we're seeing in the ftse 100. >> let's get back to the united states where we're keeping an
eye on the dow transports. they're now down for eight straight sessions. it's the longest losing streak since 201 1. aresending out a big warning sign that the u.s. economy is slowing down. >> joining us now is jeff hert, the probability fund management. it's good to see you today >> good to see you >> when we talk about the dow transports, this is part of what is known as dow theory can you set the scene for me >> well, dow theory is a sort of an old -- it's one of the oldest technical indicators of the do transports and the industrials sort of agreeing on the trend if they're both breaking new lows you're looking at a bear signal or sell signal kind of what we supposedly may have had back in december. i don't agree with that per se, but on the up side, it's bullish. here we have both of them rolling over a little bit. >> if you go back to the basics of how our economy works, if you are seeing slowing down in trubing and shipping and rails, that kind of thing, that it might send a signal that.
>> first of all, currently there's a few days of both the indexes that haven't broken out to new lows again. it's not just eight days of down, you know, action it's -- fluid to break a support level, and they haven't done that the level that was broken, when they took out the march lows back in december after speaking with my friend and colleague jeff from raymond james who we discussed this several times, and i agree, this isn't one of those abhoritions. we had dow theory sell signals that were at these interim lows, and part of the reason we think it is an aborition is the massive selling. just like we had in august 2015. it's not perfect it's flawed. it hasn't always worked. the massive three-day sell that we had just before christmas indicates that this was an apparition as well
>> when you are paying attention to the political headlines, they're scooping all kinds of print space and on-line space and our headlines on television. how did z this being a pre-election year counter balance what we're seeing in terms of political upheaval and turmoil? >> well, in the pre-election year, what you see is the government trying to manipulate the economy as they all do to stay in power, whether it's the same president or their party, and what you see is in this third year that the lead-up to the election year, they're doing everything that they can do to make the country, economy, market, everyone, you know, happy so that they'll all be voting for them or more of them will vote for them come election time that's going to dictate drive the psychology and the actions of the current administration to hold office. >> you see the dow and the s&p with five days of declines you call this typical march trading. what does that mean? in like a lion, out like a lamb?
>> it's kind of like that except that march is generally stronger in the middle of the month, so this sort of flat week in the early part -- >> the ides of march come in the center there is there a beware moment >> there is, because the peak of march, if you look at some of the charts we've put out there, it's in the stock trader's almanac and on our website you can see how this looks in the middle of march, it's much stronger leading into triple when options -- stock options expire, index options and index futures that creates volatility and a lot more action, but the week after that the end of march, end of q1 all these portfolio maneuverings that go on, tends to have a weak spot at the end of march that's where that beware the ides has an impact >> how much is hanging on corporate earnings reports for this first quarter of 2019 >> it's always hanging on it i don't think it's as much to worry about as the china trade deal as the fed and the brexit situation is a little bit constrained. it's also the other, you know, typical north korea-iran type of
concerns out there, but for the most part i'm not -- >> typical, yeah >> i'm not concerned about earnings right now more the fed and china >> thank you for coming in appreciate that. in corporate news the fda approved a new controversial drug to treat depression frank holland joins us now with more on this frank. >> well, contessa, the drug is called sprovato, and it could be a blockbuster for johnson & johnson and its jansen pharmaceutical unit. it's considered the first advance in treating depression in more than 30 years. it's designed for patients who have not benefitted from using two or more anti-depressants it's chemically similar to ketamine that has been abused as a recreational party drug and goes by the street name of special k. it will come with a boxed warning. the highest level of the fda because of a number of potential risks, including abuse, difficulty with attention and judgment, and suicidal thoughts. the fda says this drug will only be available through a restricted distribution system last month j & j ceo spoke about
the drug on "mad money" and what it could mean for the millions of people with treatment-resistant depression >> there hasn't been anything new in almost 30 years to finally get a new compound that offers hope for these patients that goes to work in a reasonably short period of time and also has good durability and offers them real hope. >> johnson & johnson shares just up slightly this morning, but sbrovado is expected to give a big boost to j & j and janssen >> really there is hope for people that suffer from depression that they're going to get relief in a much shorter time frame than typical depression drugs frank, thank you for bringing us the story. >> thank you, contessa >> sticking with the fda, fda commissioner scott gottlieb resigning. he is credited with leading the fda's charge against underaged vaping
he says he is resigning to spend more time with his family. he does plan to stay on for another month, and his successor has not yet been named let's get a check on some of the big stock movers of the day. urban outfitters, fourth quarter results beat forecast. shares are down this morning you can see off by 1.25% the retailer said it's off to a weaker than expected start this year urban is blaming colder weather in california and costly mistakes with its spring fashion line shares of ross stores are down more than 3% today the off price retailer reported better than expected fourth quarter earnings and revenue, but the company sees challenges this year. it's forecasting sales growth of just 1% to 2%. shares of nio are plunging the chinese electric carmaker is reporting a wider than expected fourth quarter loss as the flagship suv shares slowed they partially blamed the slowdown on the lunar new year nio is down now more than 15%. we're just getting started
up next, new developments in the huawei saga. the cfo facing an extradition hearing today. we're live in beijing with the latest plus, a big money grab one of the world's largest ride-hailing companies just scored a huge round of funding wait until you hear what the valuation is now full details just ahead. servicenow put our workflows in the cloud. this changes everything. you're right sir... everything. no not everything, i mean you're still blatantly sucking up to me gary. brilliantly observed, sir.
>> it has consistently demanded that the u.s. let her go she could then return home immediately. i was talking to lawyers and asking why does it seem as though beijing's position is just so extreme? one business consultant put it to me this way to explain saying that it's kind of like china's version of ivanka trump. huawei is not a government company. however, it is a national champion because of that, sometimes the lines blur between government and private. that's the reason why if you can imagine what would the trump administration do if they wanted do get ivanka trump back there are some options that beijing has to try to influence the process in order to get her back one of them is to put pressure on the canadian government, to essentially dismiss the extradition request, and the second point is to convince president trump to get the
extradition request withdrawn. there is a third option that they could just watch the proceedings go on and not get involved at all. of course, we know that's -- that actually isn't happening. in terms of pressure on canada, already this week the communist party commission, which is a commission that has accused two detained canadians of gathering secrets, so there is a development there. also, this week customs authorities revoked the export permit for a canadian canola firm, and even though the chinese government and the authorities have said that there is nothing that relates these two developments to her, there are many in the diplomatic circles who believe that the two are related. terms of the third option,
contessa, the option is there that the chinese government doesn't have to say anything and, in fact, that's what huawei is doing itself. it says that she hasn't done anything wrong, and they believe in the court system, but there are a lot of people here within the public who believe that, in fact, the chinese government is in some way undermining huawei's situation because they are acting so extreme in trying to get ms. mung back. >> what happens if she's successful or beijing gets the case dismissed >> well, when i talked to lawyers here, there are a lot of them who believe that this would be terrible for rule of law for the united states and for canada as well. that it would be seen as a breach of a whole process in a system that has been in place for a very long time then in terms of the lesson that china could learn, some of them have been quite concerned about
the message that it sends, and that the message would be that beijing can actually do whatever it wants, that its executives would be able to proceed as they like, and that they know that the government would be behind its back in order to try to put a lot of pressure on other governments to make sure that they get back home >> eunice, thank you for joining us appreciate that. in other news out of asia ride-hailing giant grab just locked in a huge round of funding. the company secured nearly $1.5 billion from this softbank vision fund. the latest round now values grab at $14 billion now, it's smaller than lyft's expected $20 billion to $25 billion valuation and pales in comparison to uber's rumored $120 billion valuation, but still, a significant boost for grab up next, we're on washington watch. some of the biggest names on wall street headed to the white house today. we'll take you live to d.c. ahead and, later, loosening up
tracie potts is live there this morning good to see you this morning what are you watching today? >> so a couple of things first of all, we're watching the president's twitter feed because he has been lashing out at democrats, contessa, after saying that he would cooperate with this latest expanded investigation, and he may still do that. he has also been going after democrats saying that this probe is nothing but plikolitics. >> it's a disgrace to our country. >> reporter: president trump hammering democrats for what he calls harassment >> basically they've started the campaign so the campaign begins. >> reporter: his son, eric >> these people are so desperate. >> reporter: among the 81 trump
associates asked for documents as the house judiciary committee investigates obstruction of justice, corruption, and abuse of power >> we need to build this record, collect the documents, interview witnesses under oath we want to show the american people what we found >> reporter: critics say it's an experience policy as the country awaits a final report any day now from russia special counsel robert mueller >> they're worried the mueller report will come up with basically nothing against a president. >> reporter: former trump lawyer michael cohen is back on capitol hill today behind closed doors >> i look forward to tomorrow to being able to in my voice to tell the american people my story. >> reporter: and the senate is poised to reject president trump's national emergency to build the border wall with mexico, prompting his first presidential veto. now, contessa, that vote will likely happen next week, so that's something else we're keeping our eye on here. >> okay. in the meantime, we're getting news out of new york state that state investigators have started an inquire where i with the
trump organization prompted by that disclosure by michael cohen's testimony that there may have been inflated numbers associated with insurance documents and the trump assets the democrats have started more investigations is there a calculus here that they're carefully following about whether this investigation could backfire >> well, it's possible that it could backfire you know, the investigation that you mentioned in new york really sort of underscores the fact that there are a lot of moving pieces here with what's happening in new york, southern districts of new york, the russia investigation several investigations here on capitol hill if there is politics behind it, will the public kind of ferret that out as we head into 2020? we're already starting to get some indications about how this is affecting the public. quinipiac has a new poll out showing how the public is looking at the cohen testimony 50% believe cohen over president trump. nearly two-thirds believe the
president did something wrong, committed some sort of crime before he took office. then there's the question of all of these requests that have gone out. some that may turn into subpoenas. could they be stalled? some experts are saying that stalling subpoenas is actually going to backfire, and democrats may not get all the info they're looking for. >> all right, we'll have to see how the news filters through throughout the day here. good to see you. thank you. more on the late-breaking story out of jap al arian. former nissan chairman carlos ghosn out of jail, but still under supervision. we have full details ahead later, mixing things up. iconic ketchup brand heinz just, you know, deciding to offer some changes. some pretty radical changes. we'lexaiwhl pln en "worldwide exchange" comes back w?w?uhi?só'ó
♪ good morning, everybody. welcome to "worldwide exchange." i'm contessa brewer pinch-hitting for brian sullivan today. he has some big shoes to fill, i'll tell you. we begin with breaking news. after more than three months behind bars, former nissan chairman carlos ghosn out of jail he was released from a japanese prison overnight you can see him there. he is the one wearing the light blue ball cap. as can you see, they're all coming out with mask oerz their faces. posted bail. this was the scene outside the japanese jail where ghosn has been held since november he put up nearly $9 million in exchange for his release, but he has to remain in japan he has had to surrender his passport he has had to agree to extensive surveillance and, in fact, he is going to be living in a home that's been approved by the japanese government. ghosn was arrested in november allegedly for underreporting his compensation ghosn calls those charges meritless. that's his word. we'll continue to follow the
latest developments on the story. we'll bring you more as it comes in to the cnbc newsroom here let's get you up to speed on what else is happening out there. frank holland is back with your executive recap. hi, frank. >> here's what's leading cnbc.com right now the fda approving johnson & johnson's latest nasal spray for depression now, this controversial drug is chemically similar to the often abuse drug ketamine. it flags the risk for sedation, difficulty with attention, judgment, thinking, abuse, and misuse as well as suicidal thoughts after taking the drug this marks the first advance in treating depression in more than 30 years sticking with the fda, da commissioner scott gottlieb is resigning. gottlieb is being credited with leading the charge against underage vaping. he says he is resigning to spend more time with his family. his successor has not been named yet. he will stay on for a month. we're also following a developing story on huawei the cfo will appear before a
canadian court today to begin her fight against being extradited to the u.s. to face fraud charges. this is related to potential violations of sanctions against iran she's been under house arrest in vancouver since being arrested in december. we will have much more coverage throughout the day right here on cnbc contessa, back to you. >> how those extradition hearings play into the trade talks with china as well frank, thanks. let's get a check on the morning's other headlines now. nbc's francis riviera is in new york with the latest hi, francis. >> hey, contessa good morning to you. we start out this morning with new signs of fall-out following the north korea summit collapse. nbc news has obtained satellite images showing renewed activity at a long-range rocket site. experts believe the country is rapidly rebuilding the facility for potential intercontinental missile launches in the future it's a clear message to president trump coming just days after talks fell apart with kim jong un. now to these dramatic moments at sea. a 115-mile-per-hour wind gust slammed into norwegian cruise
liner tipping the boat and setting passengers flying. several people on board suffered minor injuries, and in another cruise ship incident, the u.s. coast guard asked the regal princess to help rescue two people stranded in the water after ditching their small plane. they were safely lifted on board. and a consumer alert the fda has issued a warning against jewelry and beauty store claire's, saying that asbestos has been found in three of the retailer's cosmetic products the fda says it issued a warning because they say claire's did not issue a recall at the fda's request. the agency says if you have these cosmetics in your home, stop using them. a lot of little girls go to claire's, contessa even more dangerous. got to check their drawers too >> you just assume that what you are buying at the mall store for your, you know, tween girl will be safer thank you for that let's get a check on the markets. right now futures are mixed. the nasdaq is posting slight gains as indicated here. as you can see, maybe just
flattish opening, flattish the dow jones industrials futures are off by 22. the s&p indicated to open down almost three points. the yield on the ten-year treasury note is holding now at 2.71 the ten-year, as you can see it there, in the 30-year yield is 3 .08% oil prices, slightly lower today. let's take a look at those wti is off by nearly a percentage point the brent is down by a quarter percent. our next guest is weighing some of the major risks abroad. we're looking at concerns out of china, italy, germany, japan all topping his list of worries. joining me now is patrick, the chief strategist at silver crest asset management patrick, it's good to talk to you. i want the to go back to oil here for a minute because we got some interesting news coming out of chevron looking ahead to the permian basin. they say they think they can produce 600,000 barrels a day by the end of next year from the permian basin. exxon has forecast that you
could see a million barrels a day coming out of there by 2024. talk to me about investing in oil at this point? is this only a short game to play >> well, shale has really become the swing producer in the world. it's one of the things that has kept oil prices in check you know,president trump often talks about opec opec wishes that it could set the oil price because it doesn't have the influence that it used to because of u.s. production. now, the problem with u.s. production is that a lot of these wells are very rapidly depleting. you have to drill more to keep producing. there's this dynamic in the oil market where there's a lot of very short-term supply that requires a lot more investment to continue producing. then there is this shortage of longer term reserves being created, more conventional reserves you know, it's sort of the oil
market is trying to figure out between a glut and a shortage where exactly the future lies. >> let's talk a little bit about the numbers that we just got yesterday from the ism services showing a lot of positive momentum here. what does it tell you about where the fears were in december about the 2019 economy in the united states and where we are >> yeah, i mean, back in december the big sell-off, there's a lot of fear that the u.s. was facing an imminent recession, and the economic data since then has been mixed. you know, there are some bad numbers and good numbers, but the -- and there are a lot of delayed numbers because of the january shutdown we're not getting a lot of economic figures like we would -- like we would normally be getting the ones that aremore recent, including the one that came out yesterday for the non-manufacturing ism survey show a lot of continued
resilience and momentum in the u.s. economy for it to have an ism number that is around close to 60, that is nowhere near recessio indicator. also, the new orders subindex there was sizzling it was well above 60, which suggests that that momentum is going to continue into the future despite some of the negative numbers that we've gotten over the past couple of weeks, that's a very positive indicator of continued momentum in the u.s. economy. >> as negotiations continue with china on a possible trade deal ahead of the summit at the end of march, are you thinking that the market has already baked in a deal on a potential roll-back of some of the tariffs, and is enforcement really going to hold this thing up? >> so, first of all, it's possible that the market has already anticipated it, but i think you'll still see a bump in terms of corporate outlook because over the second half of
last year, one of the things that really pushed down stocks was the corporate -- not just the sort of market reaction to announcements about tariffs, but companies casting their earnings going forward in light of some of the worries about the impact of tariffs as you see some of the lift, and it does look like -- i can't say what a deal is going to look like or whether we're going to get a deal we're getting kind of rumors and speculation, and it's hard to see what it actually adds up to. it's a little bit too early to either criticize or to praise a deal and what it would consist of >> oh, but we love opining >> but, but, one thing that does seem to be more and more likely is that there won't be more tariffs either from the u.s. side or from the chinese side, and we actually might see some of the tariffs and barriers that have been posed over the past year lifted, and that, i think, would significantly help the -- not just market sentiment in terms of reaction to a headline,
but also the corporate earnings outlooks from a lot of companies that were afraid of the effect it would have on them. >> patrick, i want to put up what's happening in the markets in europe right now. sort of sluggish trading happening today. the italian, french, and german pmi numbers came in and beat expectations how are you factoring in what's happening in europe with how you manage investments >> some of the numbers in europe, most recently, have been okay still, europe is kiefr teetering on the edge of recession, and in some cases like italy is in a recession, and a lot of those pmi numbers are still in contraction. especially those that are centered around germany.
i think, you know, you got to keep your eyes out for continued weakness in europe we have brexit coming up in all likelihood, it will get delayed. still it's sort of another thing to rattle the cages in europe and emphasize vulnerabilities. you know, it makes the u.s. for all its mixed data look like, once again, the cleanest shirt in a pile of dirty shirts, and so, you know, i think they'll be continued interest in u.s. markets given the weakness not just in europe, but also in japan and in china >> what you are saying is we are wrinkled but passable? >> yes >> patrick, thank you so much for joining us this morning. appreciate that. 41 minutes past the hour let's get to the top trending stories this morning, and frank holland is back with those i love the idea of grabbing that passable shirt off the top of the pile to get to the morning meeting. >> we've all had that morning. this can cut it, i guess >> speaking of clothes that might be able to cut it, there's
been a big change in expectations, right? >> we're going to get right to it goldman sachs is loosening its tie. the bank announcing a new flexible dress code yesterday in the company-wide memo sent by ceo david solomon. now, goldman is traditionally pretty buttoned up, requiring formal business attire, but it has relaxed its requirements in the last few years for the tech division he this always get a break and a few others the new policy opens up a more casual dress code to all employees, but it did not include any list of clothing do's and don't's in my opinion this is where the trouble is the memo reads, in part, all of us knows what is and is not appropriate in the workplace we trust you will consistently exercise good judgment >> what you are saying is you don't think that that's a wise choice to trust the judgment of everyone in your organization not to show up wearing cartoon characters on their t-shirts >> well, my grandma says commonsense isn't common, and i think some people will make questionable decisions i know if had he let me wear whatever i would want, i wouldn't be wearing this suit and tie. >> there's a wardrobe person waiting off set to whip you back
into shape >> we need rules by the end of the month we'll be one blockbuster video store for those of you not familiar with the concept, left on the entire -- >> wait. what's video >> right in the age of on demand entertainment, it may seem amazing that any blockbusters are left at all, but there's actually two one in australia, and one in oregon the australian store is finally giving into the times. it's going to close by the end of march that will leave the one in bend, oregon, as the last blockbuster standing >> okay. i question how a video store in bend, oregon, is still up and running? i mean, is it that people are so loyal in bend, oregon, that they're going to keep going even though they can download -- >> i've never been >> do they not have wi-fi? >> maybe they don't have dvr's and on demand. >> we're going to get the investigative journalist right on it. >> i have so many good memories of going to a video store. you go, and you are so hopeful that your favorite video or video game is going to be there,
and it's always that moment of excitement >> it's kind of nostalgia associated with phone books and phone booths >> very true well, after a successful launch of its mayo-chop, heinz is back at it again. they're introducing two new sauces to the saucy sauce line mayo-must and mayo-que >> now, wait a minute. i will say that perhaps you should not say gross since we don't have a taste test right here lots of people -- on a sandwich. >> i have been -- i don't like mustard, though. >> remember when they came out with peanut butter and jelly in one container? it's for the lazy who don't want to take nine jars out of the -- or two out of the refrigerator and mix them up together those are both -- >> it's pretty simple. peanut butter and jelly is not a
complicated concept. for years i've been dipping my fries in mayonnaise and ketchup. >> you're ahead of the curve coming up, your wall street rundown. key things you need to watch when the opening bell rings. first, betting on casinos. how trade tensions could effect gaming stocks both here and abroad stick with us. rlidexan wl rht back
>> you are looking at a live shot of the windy city, chicago. a balmy 11 degrees hey, chicago, don't forget, it's march. like a lion, we're still at, like, in like a lion phase, i think. >> casino stocks, they've had a great start to the year. las vegas sands, wynn, mgm, all up double digits in 2019, but look, they've got a lot of ground to make up from 2018. it was a rough year. there was a big dip when we saw a lot of stocks take a big dip now make being up that grountd u ground joining us david katz, the managing director at jeffries and overseas, the gaming analysis there david, good to talk to you today. i know that macow has been a concern factor for a lot of the analysts where casinos have had ek posure. wire we're talking about ynn, las vegas sands, and to a lesser
extent, but still important, mgm. can you talk about how trade tensions there are affecting what's happening in makow as well as the chinese economy slowing down >> sure. good morning, and thanks for having me. look, i think there are a number of concerns that we have had around the market for those operators, one of which is trade tensions you will of it taken in the broad context that there is a concern around how the regulators and the government and those markets review american operators who have done very well over the past decade or so. it becomes increasingly important because as you know, those fire some in 2020, some in 2022, and the degree to which any trade complex or anti-american perspectives may enter into how those concessions are reviewed or rebid.
that is one of the primary concerns that we have had around those stocks >> in the meantime, i just got back from las vegas, and in my meetings there, and in the earnings calls that have followed the 2018 and fourth quarter earnings postings, it's clear that japan seems to be the bull's-eye target now with all of these casino companies, including ceasar's, which doesn't have a presence in makow, gunning for a license for an integrated resort they've all said it is crucial to their long-term plans this is a market that potentially could be $74 billion per year and give makow a run for its money. how important and how likely do you think it is that the u.s. companies who are gaming for one of these licenses end up landing them >> it is absolutely one of the two or three most critical issues certainly for mgm who continues to put some very big boots on the ground in japan.
it's important for ceasar's. it's important for lvs wynn as well it is the next big front ear, as you point out. they're dispatching executives, and they've been doing so for many years the challenge is from a stock perspective we're not going to know for another year or so who has a shot at winning those licenses, and then, of course, we're not going to have any earnings out of those properties for, you know, several more years. it is the next big criteria as you point out. >> i got to ask you about las vegas. it's been a year since steve wynn was ousted from his company. sheldon adelson is reportedly very ill and has not been seen at the company since the end of last year. you've got an activist investor on the board of mgm. you have ceasar's ceo on the way out and carl icahn taking the reigns is there an absence of leadership for this industry right now? >> i wouldn't call it an absence, but that's a very --
that's a very astute point because this is one of the most interesting and challenging times as an analyst in gaming because of those leadership transitions. worry talking about wynn who still has some very tal ened people, but, you know, is missing a legend you know, lvs, as you point out, may be confronting at some point, you know, that same dynamic. ceasar's is in a leadership transition, and mgm, there is some uncertainty around what those activists will push for, but we certainly know there has been some leadership and executives leaving over the recent past. >> david, thank you so much for joining us at this early hour. appreciate that. >> my pleasure any time thank you. up next, what to watch on wall street. the fed, d.c. drama, and more. key themes every investor should have on their radar when we return amazing thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall.
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a big day ahead. the nation's top ceos are headed to the white house we also get the latest read on the jobs market with today's adp report and we'll hear from the fed this afternoon with the release of the beige book. what should be on your radar in the day ahead? joining us on the cnbc news line, founding partner and cio at cresset wealth advisors as we head into the day ahead, we're looking at small caps outperforming large caps is there still opportunity for investment here, or are they just too expensive? >> i think that there is opportunity there. i would prefer to own small over large. they have certainly a better fundamental outlook even if valuation is, i'll say, in line with large it's a nice hedge. the fact is the ocb just downgraded their global growth forecast dinging the u.s. a little, but really taking most
of the brunt out of a lot of european economies i think that u.s. small cap with doing most of their business domestically is not a bad place to be, and it doesn't cost that much more to, you know, to really have that position in place. >> i mentioned the beige book this afternoon what do you expect out of the fed and any impact on the markets? >> no. i think more of the same i do want to hear a little bit more about consumer credit you know, this auto number is a bit of an outliar. consumer credit has been actually rather tame that consumer household debt relative to net worth has been in steady decline, and yet, sticking out is, you know, 4.5% of auto loans outstanding are 90 days past due or more. my suspicion is it has more to do with lax underwriting
standards from overaggressive sellers. >> jack, i got do leave it there. >> but, you know, we'll see. >> thank you very much for joining us chgeantht for "worldwide exan" d is morning's "squawk box" is next rebekkah: opioids has taken everything and everyone i've ever loved away from me. everything. i blew my ankle out and i got prescribed pain pills by my doctor. if making my detox public is gonna help somebody i'm all for it. i just wish i would've had a warning.
good morning former nissan chairman carlos ghosn out of jail. he was released last night after posting bail we'll show you his first moments of freedom after more than 1 00 days behind bars the fda approving a controversial new drug to combat depression, similar to the party drug special k we got all the details straight ahead. and tobacco stocks getting a boost after fda commissioner dr. scott gottlieb announced he who resign he spearheaded the crackdown on e-cigs wednesday, march 6, 2019 "squawk box" begins right now.
good morning welcome on "squawk box" here on cnbc where are esh we are live from the u.s. market site in times square i'm becky quick. let's take a look at the u.s. equity futures you'll see right now that there are some red arrows. dow futures indicated down by about 24 points. s&p futures down by about three points, and then the nasdaq is hovering right around the flat line right now this all comes after declines yesterday. you saw the dow and the s&p 500, they've now been down for five of the last six sessions the nasdaq has been down for three of the last four days, and then check out the dow transports down yesterday once again. they've been down for eight sessions in a row. losing streak that's actually seeing the dow transports back in correction territory and it's the longest losing streak we've seen since 2011. it's a little bit of an anomaly