tv Worldwide Exchange CNBC April 12, 2019 5:00am-6:00am EDT
skbro leerz your top five at 5:00 it is time uber announcing big plans to go public it could be the biggest technology ipo in american history. we're going to break down the three things that you need to be focused on straight ahead. disney finally pulling back the wraps on its new streaming service, but it's what business ceo bob eiger said about traditional tv that is getting all of wall street's attention today. you're going to hear from eiger ahead. earnings season kicking off in a couple of hours. what you can expect from some of the biggest banks like jp morgan and wells fargo when they roll on the their numbers let's call it the cain mutany.
another gop senator coming out against president trump's latest pick for the fed and a big win for space-ex last night as it launches the world's most powerful rocket all the details ahead on these big stories on this friday, april 12th, it as worldwide exchange begins right now. >> good morning, good afternoon, good evening i am brian sullivan, and happy friday look at this i mean, like major tom, futures up, up and away this morning dow futures, somebody came in hot and heavy into the futures market about a half an hour ago. futures were mildly up when we checked about 30 minutes ago look at this dow futures now up 165 points. s&p and nasdaq futures are also higher as well a real nice pop. trying to figure out what, if any, news might be behind that because, again, the futures market did this and then did
that about 30 minutes ago. we'll get more on the markets coming up in just a couple of moments. first, we have got to get to your top story this morning. the wait is over uber making it official. filing to become what could be one of, iffen the biggest technology ipo in american history. let's get right now to leslie picker with all the details in their filing leslie >> hey, good morning, brian. uber disclosing its ipo prospectus with about 300 pages worth of details we've pulled out a couple of key financial metrics embedded in their s-1 filing that investors will be using to decide whether or not to try and invest in this deal, which will come out in the next couple of weeks or so uber defines its users as monthly ty platform consumers or map c's. these are unique customers who completed a service on uber's platform that number has been steadily climbing up 35% to 91 million at the end of december from 2017. something else that uber calls
core platform adjusted net revenue. this measures top line performance for ride-sharing and eats and other businesses minus the incentives that they give to the drivers. you can see from this chart that across all of uber's core businesses growth has effectively plateaued over the last couple of quarters. lastly, there is the margin uber makes. this does not include uber's rnd expenses and other costs that are unrelated to running the day to day business for their core platform now, uber calls this core platform contribution margin, which dipped back into negative territory in q4, which the company attributes to increased competitive pressure in the ride-sharing market. now, investors must be given at least 15 days to review documents before uber sets a price range and an expected valuation to kick off its road show, but as you can see from those three charts, growth has been slowing over the last couple of quarters, which is something they are going to ask about as they talk to management
guys >> yeah. i mean, okay, we've got -- what did you say, monthly active platform consumers, core contribution what was the other one >> core contribution margin, and then adjusted net revenue for their core platform business >> me thinks uber is paying some lawyers a lot of money to come up with the new metrics. we're going to wait and see how wall street reacts to what are new metrics that are out there leslie, i want to talk also about lyft because i know that you have been all over the story. i don't want to muddle up or drable up the uber story >> drable, yes >> it's an inside joke from yesterday which is this lyft has lost we'll call it roughly $8 billion market cap from its peak intraday trade after it began trading as well. market cap right now $17.4 billion. they are similar, but they are not the same companies anybody you talked to says lyft's pain could hurt uber or don't worry about it they're different enough >> that's exactly right. so as investors look to assess
what valuation, what price they're willing to pay for uber, lyft is going to be an input into their calculation, but it won't be the entirety of the calculation. lyft basically encompasses uber's ride-sharing business it's kind of apples to apples with that. uber has so many other businesses that it's involved in they do food delivery through uber eats. they do freight. they're invested in all of these venture projects, which also play a role into their expected valuation, says and they're global they have recently made acquisitions globally in the middle east with karim they have a way larger presence across the world, and so all of those things make it a much different company than lyft is >> all right leslie picker, we're going to see you all day here on cnbc, and we look forward to it. thank you very much. uber is waiting to go public, but the public markets that are existing right now look very solid on a friday as we just noted, futures getting a big pop. about 30 to 45 minutes ago
dow futures up 157 points. not seeing a huge catalyst out there right now. either way futures are popping the s&p 500 coming into today. up ten of the past 11 sessions also, remember market moving earnings are due out very soon jp morgan chase and wells fargo roll out their quarters at 7:00 a.m. eastern and 8:00 a.m. eastern time respectively. in the bond market, not a big move in bonds. 2.25%. we will also get a deeper dive on rates and the fed ahead later on in the show worldwide asia, not a big gain we had strong data out of china, by the way exports rising 14% didn't help. the shanghai composite down very fractionally japan, though, continues its slow march higher. they rose another three-fourths of 1% as well, and the european markets like our futures a lot of green on the screen all across the board.
>> if futures hold that number will go down even more let's brake it all down now with a man who literally flew in just for you. jeff killberg, founder and ceo of kkm financial also, a cnbc contributor before we get into bank earnings, i'm going to put you on the spot at 5:07 a.m. any clue why the futures just had that massive pop about 30 minutes ago? >> well, a lot of technical
movement here at 2900 in the s&p 500. those futures mark at 2905 i think when you see people feeling left out of the market, there's a little enthusiasm coming into expectations for the banks. boom, they came in and last stops were executed and now all of a sudden it's 29.05 brsh. >> that's the etf we like to utilize for the banking sector, and that's dragging the s&p 500. there's high expectations. we're really focused on the forward guidance because at the end of the day, when you see the valuation on these stocks and, yet, you can see it's fully priced in at 2900 and the s&p 500. i think you have to consider where are the interest rates you talk about the ten-year note
being at 2.52% that really justifies the lost evaluations or the stock price itself >> you know, we're going to use and abuse you later on in the show i don't want to get too much of a deep dive on rates now we'll do that in a bit how much have these lower rates maybe caught investors off guard because it's a -- it's sort of a general thought that the big banks benefit. they do better when rates are higher because they're nim the net interest margin ticks up the longer end of the curve is seeing folks buy there's a reason why there's anxiety in the market. you're seeing in comparison to other offerings. look at the german bund where, that's juicy, sully. at the end of the day i do think the banks are positioned to grow here the forward guidance, the foe teshl movement of the u.s. dollar, i don't think the u.s. dollar moves anywhere. the federal research, it's been articulated by president trump, by the federal reserve that we are going to be patient.
i like xlf >> that is a big one, baby >> if you look at the two earnings we're having today, jp morgan, wells fargo, those two are in the top ten of that etf, and make up nearly 20% it's dragging in comparison to the s&p 500, and that could really reverse the next four days >> refill that coffee cup. we're going to put you back on later on to a deeper dive on rates. see you in a bit thank you very much. >> gr hosn was supposed to be released from jail this weekend. now japanese authorities plan to keep ghosn behind bars until at
least april 22nd the dpra every extra jail time gives them more time to bring formal charges against the former nissan boss hosn rearrested on claims of financial misconduct he denies strongly any wrong doing. a big win overnight. the most powerful rocket in space. more of that ireblvio ncdie de when we are back after this. i assembled it myself last night. i think i did an ok job. just ok? what if something bad happens? we just move to the next town. just ok is not ok. especially when it comes to your network. at&t is america's best wireless network according to
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order mlb extra innings for a great low price and get mlb.tv included with your subscription. go online to learn more. . 5:13 on a busy friday morning at cnbc. iron man, look skywalker, and buzz lightyear you know them all. now they officially have a new streaming home disney announcing its disney plus streaming service it will be available this fall frank holland is here now with all the details. frank. >> well, brian, disney plus will launch on november 12th and cost $6.99 a month or $69.99 a year that will make it less expensive than netflix here's what disney ceo bob eiger told cnbc overnight. >> it's a product i think is a great value to a lot of people they're still building their
brand. in our case we start with a customer relationship that's visceral if i see the opportunity to buy disney plus and i can watch it on all these devices, and i can download the movies and i'm going to watch original product, but i'm also going to watch things from the library, that's something i know that i'm going to want. >> iger also talked about the future of traditional television here's what he told cnbc.
skurnltz are starting to say the price to value relationship, even though i'm getting a lot of content and a lot of quality, it isn't really there because i don't need all of that stuff >> disney also confirming it will likely bundle all three of its streaming services, disney plus, espn, and hulu iger also making news about his future he plans to step down as ceo in 2021 when his contract expires we're going to hear a lot more from bob iger today at 9:00 a.m. eastern on squawk on the street. >> what were you about the ig surprises and take-aways for you from yesterday's event >> well, i would say there are a couple first, the price was about $1 lower than the assessment. secondly, they were very aggressive on the kind of subgrowth they could achieve, saying this they could hit 60
million to 90 million subscribers in five years for a service they haven't launched yet for disney plus. plus, another 10 million for espn plus, which has 2 million subs today plus, hulu at 40 million to 60 million subs if you add it all together, they're saying that 70 million households will pay disney for a consumer service by 2024, and that's about 50% of households by that date, which is what netflix has today after having a monopoly in streaming for the last five years. those are pretty aggressive numbers. >> too aggressive? >> we'll see like bob -- like bob iger says, they have these established brands, and they have one heck of a line-up they're going to have 100% of those princess movies available 1 00% of the time. >> now they're all going to be
on this service, so your daughter can watch them 20 times in a row in they want. >> yeah, and they've always done a good job sort of putting all those classic movies slowly back when it was on dvd do you think they could have charged maybe a little more than $6.99. were they trying to bring people in now for future price hikes? >> i do think they could have. they're also sort of underscoring something that we've been saying for a long time, which is disney's cost of content is lower because they paid for snow white in 1937. they touch 100 million consumers. 100 mule consumer households every single year through their other products they have really high touch points with american households, which gives them a lower customer acquisition cost for this new service they're launching. >> you know, disney stock up
3.5% investors like it. surprised a little bit maybe that roku's stock is not moving higher because you think this is a net positive for roku as well. >> i do. they said they've only signed two distribution deals one is with roku, and one is with playstation vue they may have other announcements on distribution platforms before we get to the november 12th kickoff date i would have said since roku has a deal, roku will get patd id b sign up, and that is a positive for roku, i believe. >> i'm guessing all the netflix executives are watching this closely. is this a negative for netflix, or can they coexist peacefully >> so we're saying that it's negative for netflix our survey data says that consumers today pay for two or three -- two to three direct to consumer services, and they say in three years that they're going to pay for two to three direct to consumer services,
which means they're going to either take disney at $7 with this amazing content or netflix at $10 to $12 on content that's degrading because they're losing all the disney content as well as other studios. >> this is a lot of marketing dollars that have gone in behind the films that disney husband mr. launch with on november 12th >> laura martin, spectacular analysis as well thank you very much for joining us talk to you soon >> talk to you soon. >> all right still ahead, big news out of a major dow component. boeing, what they just said about the 737 max that has that stock moving a little higher today. and later on, a fashion fix. j. crew considering a big makeover to raise some
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in dallas yesterday. >> overall 96 flights totaling a little over 159 hours of air time with this updated software. they will conduct additional tests and production flights in the coming weeks, and we continue to demonstrate that we've identified and met all certification requirements >> now, the company adding that it will likely submit a plan to fix the max to faa regulators within the next two weeks. the jet has been globally grounded since march 13th. shares of boeing edging higher up about 1.3%. j. crew considering an ipo for its made well clothing brand. the fashion retailer saying the move is part of its initiative to maximize value, position its brand for the long-term growth, and deleverage and strengthen the balance sheet. j. crew carries a debt load. that ipo could happen as early as the second half of this year according to the brand's release. let's get a check now on
this morning's other top headlines outside of the world of money and business. phillip menna now with those happy friday, phillip. >> happy friday to you, brian. massive storm is still slamming much of the country. across the midwest millions face blizzard conditions. people are reporting everything from heavy snow to freezing rain, and even rare sightings of thunder snow the i-94 near st. cloud, minnesota, was shut down for hours as emergency crews responded to multiple crashes involving semi-trucks. a city in mourning as thousands in l.a. turned out to pay their final respects to explainper nipsey hustle 21,000 seat staples center was packed for his funeral fans also lined a nearby street as hustle's casket led a 25-mile procession through the streets of los angeles the jeopardy champ who has captivated the trivia world with huge scores is showing no signs of slowing down.
even though he did miss final jeopardy, james's six-day total has eclipsed the $325,000 mark he still has a long way to go, though, brian, to top all-time jeopardy champ ken jennings. that guy, he is making a lot of money in a very short period of time >> everyone says the guy is a professional gambler he understands odds. the guy is just smart. he knows a lot of stuff, too let's not take anything away from him >> no. he is getting paid handsomely for that knowledge >> he sure is. have a great weekend, buddy. >> you too still to come, more details on uber's filing and what could be one of if not the biggest ipos in american history, and then it is not just china and mexico president trump setting his sights on a new target in the global trade war we'll talk about that and how oprah is dealing with the rising price of avocados. you might be surprised to hear what she's been doing for some time stick around
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hailing an ipo, uber going public it could be the biggest technology ipo in american history. all the key things you need to know and focus on straight ahead. a hot time in the house of mouse. disney shares shooting higher. it unveils its new streaming service. the market likes it. and betting on the banks we're about to kick off a massive earnings season in a big way. you'll hear from a top banking analyst about what's key for your money as worldwide exchange rolls on right now
welcome back thanks for being with us i'm brian sullivan exactly 5:30 right now your top story today, uber revealing new details as it prepares to make its public market debut the company will list on the new york stock exchange under the ticker, what else, uber. in a filing made public yesterday the company says it's got 91 million users however, growth is slowing, and that it may never make a profit. the company's revenues came in at 11.27 billion dollars last year up from just 495 million in 2014 one of the fastest growing companies of all time. all right. also big news from disney. let's get more on the latest streaming service unveil with frank holland. frank. >> good morning, brian you know, disney plus will launch on november 12th. it will cost $6.99 a month or
$69.99 a year. that will make it less expensive than net flick it will cover five categories. disney, pixar, marvel, star wars, and national geographic. about bob iger talking about traditional television here's what he had to say. >> i don't think the consumer really wants to buy 150, 200 channels of programming for a fairly significant price when they're not interested in many of those channels, and in some cases they can't even find them.
>> disney will likely bundle all three of its stream says services iger also saying he will plan to step down in 2021 when his contract expires we're going to hear much more from bob iger today at 9:00 a.m. eastern on squawk on the street. a lot to digest here disney shares also up about 3.5% this morning, brian. back to you. >> market likes it frank, thanks very much. >> you have dow component disney, some news on boeing. likely the reason -- we got up this morning futures were up fractionally dow futures up 143 points right now if this holds. the dow should end this week higher as well continuing what has been a solid start to the year. the s&p 500, by the way, coming into today, up 10 of the past 11 sessions now, that despite this president trump turning to another front in the global
trade turmoil. europe this week alone the u.s. has threatened new sar every take ofs on $11 billion worth of e.u. goods, and yesterday the president sending a tweet calling the u.s. -- or calling the e.u. a brutal trading partner. let's talk more about all of this with valdez, vice president of the e.u. commission and a former prime minister. it's good to see you again are you surprised that the president is coming out so aggressive against the e.u. with trade? >> good morning. well, indeed what we think from the e.u. side that first it's necessary to avoid further escalation of trade tensions, and, second, it's important to stick with rules-based multi-lateral system and resolve trade within the wto framework. >> is it going to go anywhere? the wto may indeed back it we have to wait and see what happens. then the tariffs kick in
do you ultimately believe -- have you had to bet that these tariffs ultimately get enacted >> first of all, if it speaks specifically on those 11 billion that were announced, this basically concerns one of the wto cases against airbus, and the size of potential measures however, from e.u. side of these things, the amounts are largely exaggerated. they are not the ones awarded by wto, and moreover, there is a similar case from e.u. side against boeing, so they extend and net each other out >> gow think they're illegal >> well, in this case, we still need to wait for wto decision, which will award exact amount of possibility for measures for u.s. in a case of airbus and the
same, but later for e.u. in a case of boeing what would europe do the wto says they're valid or not. we put them on anyway. we know this is a president that is willing to do things that are maybe without heft cal precedent. what does e.u. do in return? >> first, if we stay within wto framework and u.s. acts in line with wto decision, of course, we are going to respect it expecting that the u.s. respects also other wto decisions which go in favor of e.u that's how it should work. if u.s. starts taking unilateral tariff increases as we had seen previously with steel and alumin aluminum, in this case e.u. is going to come with proportionate measures to balance off those kind of unilateral tariff
increases. brekts it, another delay does ultimately brexit happen? it seems like if they're delaying, they must be talking, and if you are talking, maybe they're getting somewhere. >> well, first of all, what's positive is that we manage to avoid most destructive of all scenarios, which will be no deal brexit now there is another extension they'll get to the 1st of october, and that gives you more time for u.k. to make up its mind about their preferred scenario, and it certainly gives time for orderly withdrawal. at the same time i must say that everything is still possible from no deal to no brexit. this darnl half a year certainly it's a good thing because it's given us more time, and it allows to arrive at orderly
exports up 14% out of china. dow futures popping on that news up 144 points right now. time for this morning's top trending stories frank holland is back with those. frank. >> i'm here. let's get right down to it a big win for space-ex the company launching its falcon heavy rocket and successfully landed all three of its boosters for the very first time. this was the second flight for the space-ex falcon heavy. it is the most powerful rocket in the entire world. this rocket is carrying a communication satellite for saudi arabian company arab sad into space pretty cool stuff there. now to what has people buzzing on-line. oprah to the rescue again. this time she has a solution for america's avocado crisis sort of. the queen of media is frustrated about paying grocery store prices for after kavocados, so bought her own avocado orchard she posted her picture on her instagram account. she said it was ridiculous what she was paying for avocados. i don't know you perked up on that one. >> does she share them
>> well, she travels with them and her own bread as well. >> does she sell them? i want an oprah avocado. i want to see -- >> i would assume that some of them are for sale. she travels around with her own avocados and her own bread i don't know exactly why >> because she has her own jet >> you can do that when you are a billionaire. you want to watch out steph curry because this robot could be coming for your job a japanese basketball team showing off its newest player overnight. this is q3 it's a rebot that can shoot three-pointers on command. human players, well, we don't have to be worried just yet because q3 doesn't know how to play defense or run. same as james harden on the defensive part >> maybe not as good frank, thank you very much >> thank you, sir. switching to another sport ahead of day two, this, no doubt, the shot of the day on day one of the magsers on 18 a man with the most golfy name in history, bryson dechambeau a clean streak a nice roll. it rolls just inches away from
the hole two holes yert dechambeau almost made a hole in one he tapped in for a birdie. he is tied for the lead with brooks koepka. phil mickelson also in the hunt. so is tiger, by the way. earnings season about to kick off jp morgan chase and wells fargo. what they report their results plus, your morning rbi has to do with rbis or a lack of them. lack of a lot of things. the stagger and sad stat about the orios xtlene [knocking]
intelligence me thinks you beg to differ. >> i think the economy is robust, and that's why the fed should be patient and be in an easing frame of mind sfwhoo you believe they should be cutting rates >> no. i'm speaking tongue-in-cheek >> i thought so. wait a minute. i follow you on twitter. i read your stuff. there's no way you believe they should be cutting. >> there's this narrative that everything is so awesome that the fed should be easing policy. it's the most hypocritical thing he have ever heard that's the narrative >> i think the narrative i would be concerned about is when you have kudlow coming out, and you have some of the fed nominees coming out i'm thinking either, a, they're just trying to please the president or, b, they know something we don't that we need to be worried about. >> look, change happens fast people don't understand that when it is the best of times, that is typically when economies are at inflexion points. it's just the way history works. the working assumption right now is that the fed has outlawed the business cycle that we will never go into recession.
these are very dangerous ways of thinking if you look in the weeds, which i do all the time, if you look, for example, at the chicago pmi, which disappointed, and it's been the stand-out because the manufacturing sector in the midwest has been so strong if you looked inside of that the last release, which disappointed, future inventories, i don't want to get too wonky here, but future inventories, which basically says my confidence in future demand swung from a positive position to a negative position to the greatest extent since the surveys err been -- >> sometimes you are making the case for your rate cut, though, because you're worried about that we saw the joelts, the job opening labor. that dropped a couple hundred thousand >> i'm just disputing the fed's notion that this is the strongest economy that we've ever had we have layoffs going up in this country. we have for eight solid months >> they shouldn't be cutting this year, you don't believe so? >> i think they will be cutting this year. i don't think they'll ever fight the market >> should they be -- i shouldn't eat that second order of
biscuits and gravy, but i will should they or shouldn't they? >> if they are in front of what's coming, then they should be cutting rates this year >> you believe so? >> i do. the market -- >> you have jobless claims at a 50-year low. >> companies will -- >> a lot of the other data, i could find -- you can say this is bad i can say data, this is good >> there is a lot to be said for some of the data that show extreme strength in the u.s. economy. we know for a fact that the skill shortage means that companies will not let go of their employees. you know, on the other hand, look at last year's stand-out. look at trucking look at the prices for freight look at the cash freight index str >> don't you worry about spiking inflation? >> that's the problem. you've got the chinese they pumped $792 billion think about that $83 billion in one day in january. for the quarter almost $800 billion of stimulus. of course, you are going to jack up exports i mean, look, the way the
chinese government implements monetary policy is they give lenders offers they can't refuse >> it's the iron hand. not the -- >> they are like lend now and lend to them >> to anybody. >> no. it was targeted. small and medium size enterpr e enterprises that are starved for capital where. >> they're not choosey they just want to stimulate. >> the bank says we're going to lose money on these loans, and the government says and? >> how do we respond to that massive china stimulus if at all, if there is a response? >> if you think about the powell pivot and the stimulus and that the powell pivot unfroze balance sheets the junk bond market was shut down, and that scared the heck out of jay powell. he understands the credit markets. >> that was the pivot where he went from an eagle to a pigeon >> exactly >> i just changed the birds. you can use that twill intelligence >> sky rats. i didn't say that. the combination opened up the coffers again. cfos said who cares about the balance sheet, and ge -- their debt being downgraded and the
credit market freeze once the credit markets open back up, buybacks. if you combine the record buybacks we've had in the united states in the first quarter and the chinese stimulus, you pump $1 trillion into the economy you are going to get a reaction. >> you worked at the dallas fed. a fourth gop senator saying we're not gsh woulder calling it the cain mutany. is that the right move should he be on the fed? >> he is not going to be we don't have to talk about this anymore. he stepped back from the process, and rightly so. i think he actually made an interesting political maneuver because i think that the trump administration put the two individuals up so that they could get one. i think they never ped cain. i think they always wanted moore, and i think that the senate was not going to turn down two candidates. >> so who should be on the fed >> who should be on the fed? >> i mean, if there's no cain and maybe no moore, what do we do who is a good -- you you raising your hand? >> that would not be popular no >> we don't need popular we need good who would you fill in the fed? you name somebody that you would put on the fed right now
>> well, rich clarida would have been a good choice, and there he is where, now we find out that he is as dovish as they come that's the thing you have to find -- the reason that cain wasn't such a terrible choice is because he knows what a payroll is you have to -- you have to find somebody who has been in the real world who understands how fed policy directly effects little people. it's not just wall street. >> and pizza danielle >> we love pizza >> the ceo of godfathers great stuff. i would expect nothing less. earnings season about to kick off in a big way. wells fargo, jp morgan, pnc, all set to release their numbers in a couple of hours or less than an hour. sure to be a big focus for the financials when they report. let's get back now to jeff killberg and break down the bug moves in bond land ahead of it, because bonds matter to these companies. >> that's absolutely right we are seeing the ten-year note here at 2.52%. it's really easy to see. rates continue to go lower
they tether to 250 why is that? the fed policy, that shift in policy in conjunction, president trump, he is talking about cutting rates. he is talking about quantity takive easing. before we rewind here, let's look at october here 325. that was a big level everyone was talking about rates normalizing. rates are supposed to go up. >> hi. let me tell you what people are talking about. almost every guest on cnbc -- >> that's right. >> was talking about that to 3.5. not this >> right >> except for scott miner to guggenheim and maybe one or two others >> you are really good at this drawing, by the way. 2.34 is where we went. we went back and test there. due to the fact we have so many different forces, but the fed policy, that shift, stark contrast when they were on autopilot with three rate hikes in 2019. now they're talking about being patient, and i think with president trump chirping, i think we will see rates go lower. >> i want to put you on the record because you're making a call here, which is you believe we're going to do that to here is there any support there do we go to 2.0?
where do we go >> i don't think we go to 2.0, but we go down and think about this this is all at 252 when the stock market is at 2900. stocks and bonds are living together cats and dogs, sully i think we go down to 2.25 you heard it here first. >> what does this mean for the banks because the banks probably would have preferred to see that or maybe that because they want to lend. they want that spread. what they call the nim, not the secret of nim. that's a movie about rats. the net interest margin to go up a little bit is this bad for the banks? >> we will hear about that in about an hour or two if it's bad for the banks, but i don't think it's as bad as we're looking at due to the short end of the curve. that's where the fed controls it they're making money there, and that will come out in the earnings reports >> stay here i want to bring in another guest and another voice as well, talk about how that, what we just talked about, and trading and everything else will impact the bank numbers joining us on the news line, stephen biggar, argus research you just hearted our wonky analysis, but good i hope on rates. how does that drop in rates
affect the quarter did it happen too late to affect q1 >> well, good morning, brian no, i think ten-year yields have been moving down for six months now, so after peaking late last year, you know, the broader story for lending is really the slowdown in loan growth that the fed has pushed the short end up, and that's resulted in more sluggish loan growth that's really, you know, part of the impact the other impact, obviously, is on -- this just pulled back and higher rates to the extent that banks borrow short and lend a little long. obviously, that will hurt net interest margins >> of course, it could help, i guess, lending on the mortgage side if you are big into that maybe trading revenue baecause the markets have been hot. what is the balance, stephen >> well, on average and jpm is a bit of a bellweather now for the universal banks, clearly you know, it was a challenging
quarter. you had equity underwriting revenues down 30%. equity trading down in the mid teens. as you said, the -- it was a decent quarter for asset management clearly, the market rebounded substantially from the fourth quarter down trend at the same time you had a uni-directional market slightly grinding higher without that big volatility that tends to not be favorable for equity trading revenues. >> hey, stephen. quick question here. we obviously have seen savers lose in this 3% drop down to 2.5% in the ten-year is it counter balanced and offset due to the fact that we are seeing refinancing and mortgages and seeing the housing market come back after lagging in 2018? >> well, yeah. it does give another entry for those that want to refinance that are taking out loans that are at the longer end. mortgages, as you mentioned, but the big hurt has been on the
shorter end where consumers take out loans on autos and other short-term financing the primary has obviously moved much higher as the fed has moved the fed funds rate up, so that's been a counter offset. >> all right stephen biggar we have pnc at 6:45. jpm at 7:00. thank you very much for joining us jeff, thank you. >> this was great, sully >> thank you >> all right time now for your morning rbi. today it is about baseball, and if you live in baltimore or an orioles fan, i want you to put down your coffee mug, because i don't want you throwing it at the television here's the good news chris davis had two home runs for the second straight game the bad news is that it was chris davis with a k davis who plays for the athletics. he is the one who did it the orioles chris davis went 0 for 3. that means davis has now gone 61 straight plate appearances without a hit going back to last
season this season, chris davis, is 0 for 53 his batting average, of course, therefore, is 0-0-0. his contract is many 0s. 161 million dollar deal. more random? he had 79 hits last year that amounts to, wait for it, $291,000 per hit last year, which at this point might look like a good deal if he keeps these numbers. random, but interesting, and i apologize to all my friends down there in charm city. that's it for worldwide exchange "squawk box" is next have a great wke eend cake in the conference room! showing 'em you're ready to be your own boss. that's the beauty of your smile. bring out the best in it with crest 3d white.
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>> dez any announcing a streaming plan for half the cost of subscribers we'll show you what iger said in an interview with our own david faber. uber set to go public, but the company warns it may never make a profit relax. don't worry about it we have all the details coming from the company's filing. it's friday, april 12th, 2019. "squawk box" begins right now. let's take a look at the u.s. equity futures. you're going to see that the dow is indicated to open up by about 155 points s&p futures are up by over 11 points the nasdaq is up by close to 30 points all of this started overnight in
asia take a look at what happened after you got some numbers there that showed exports in china surged back last month the nikkei was up by .7% the hang seng up by .25% the shanghai composite was flat. in europe this morning you are also seeing up arrows across the board. chevron announcing anadarko. price tag $33 billion in cash and stock. >> joining us right now, for this breaking news deal or breaking deal, i should say, exclusively, michael worth is with us. chevron ceo. we're thrilled to have you >> that's why he is here zoo literally as the news was crossing the