tv Worldwide Exchange CNBC May 10, 2018 5:00am-6:00am EDT
>> it was a very important thing to all of us to be able to get these three great people out >> an historic moment as the president welcomes home three americans held in north korea. they all touched down at joint base andrews a short moment ago. let's get to tracie potts who has more on this developing story. >> good morning. it's huge. the president was there there morning along with the first lady, the vice president, his wife, the secretary of state all waiting for these three men to plane. then they went up the steps, on
to the plane and the president sent six minutes talking to them there and came out and spoke to the media afterwards saying they were home, and that if he's able to also get north korea to denuclearize, that will be the proudest moment. these detainees were released in advance of a meeting where the president is expected to talk about that he said this morning the location for that meeting with s kim jong-un, the meeting date has been set these three men are headed to walter reid, they will be checked out before reuniting with their family. they saw that big american flag for the first time some of them in nearly two years this morning. now the tough work of sitting down and trying to work out a way to wind down north korea's nuclear program. >> this is a big moment. you were noting that it was unexpected that the president and the first lady were going up the steps.
was he expected to be at the air force base to greet them >> he said yesterday he would be here early this morning. so we knew he would be here. that whole thing was planned there were risers out there. the media was there. he was expected to greet them on the tarmac, not go up the steps and spend quite a bit of time talking to them on the plane before they took their first steps on u.s. soil >> these men have been through a lot. welcoming them back to washington, d.c. area. tracie potts, thank you very much that is a terrific story that will top your headlines everywhere today that's not all that is going on. here's what else is happening. the ntsb launching an investigation into a fatal crash in florida involving a tesla model s. ford halting production of its best f-150 pick jaup fup followa major supply disruption.
rbs reaching a 4$4.9 billion settlement, and pump prices reach the highest levels of the year here's how your money looks now. futures indicating a slightly higher open. the dow jones in the middle of a five-day winning streak now. we are still down for the year, but over the past week caterpillar, apple, and jpmorgan chase all up 5%. let's put this into a blender and come out with something edible, chad morga flshgsla gmos us now we asked viewers what is the most important thing happening, the global economy being strong, oil prices moving up, the 3% bond yield or something else 36% said the strong economy matters most do you agree >> i totally agree if you have an acceleration of
the global economy that would bode well for trade and earnings one has to keep an eye on inflation trends as well as the risk-free rate >> that's jargon watch what is risk-free rate mean? >> the fed funds rate, the five-year yield on the u.s. treasury as well as the ten-year yield, those are competitive asset classes to equities. so as you start to see the interest rates go higher, then investors say, can i get a better return that's less risk being in a five-year bond. that becomes more competitive. over the course of the last nine years, you had fed funds rate, the federal reserve rate well below the rate of inflation. hence the reasons for the great market return. >> we try to overcomplicate things a lot of times by sounding smart here's the basic question. is 3% return on the ten-year
bond enough to lure some nervous stock investors out of equities and into bonds >> no, not at all. >> you don't think so. >> not the ten-year bonds at 3%. that won't be the competitive rate perhaps when you look at the five-year bond or the two-year treasury, that can become more competitive. so, for example -- >> even on less of a yield >> look at money market funds. you can get 1.75% on money market funds investors who are more skittish may say i don't want to be in the equity markets, i want to change my allegation and shave 5% off that's why you're not getting pe multiple expansion that's the reason for expectations that perhaps we have a good market, good economy, but the returns will be 4% to 6% as opposed to 9%, 10% >> it's easy to forget we're still down, which is why i reminded viewers at the top, we're down on the year for the dow jones.
it's hard to believe we had a good run the last couple of days still lower by 0. 7% you remain optimistic for the year >> yes you were looking at a 4% to 6% return that's -- by the way, we're down or neutral in regard to our return with real strong economic numbers. real strong earnings so we believe overall that we'll have, you know, an okay year, just not great >> define okay >> 4% to 6% total return >> including dividends >> including dividends we would avoid being in emerging markets and be more invested in developmented mark developed, markets >> we hear a lot of people on this network say europe is better it's a couple years behind they're being accommodative with their monetary policy. they're not tightening
>> with that, as the federal reserve tightens, the u.s. dollar will strengthen >> as it has >> if you're a u.s.-based investor, then that is actually a tailwind for returns if you're overseas, that's a bit of a headwind. >> don't be overly optimistic but stocks should rise a bit from here. you're still going to make more in stocks than bonds this year is that a fair summation >> 100%. you did great. >> thanks. am i invited back on the show. >> you're invited back >> thanks, chad. i look forward to being a guest again. >> the financial times reporting that comcast likely pending offer for 21st century fox could include a 2$2.5 billion breakup fee. matt, put that into perspective. 2$2.5 billion that's a lot
>> it's a lot, but it's the same as disney is offering. there's a rival bid there disney which fox has recommended. comcast is trying to crash the party. it has its own all-cash bid it's working on it will probably land sometime next week when we know the outcome of the time warner/at&t merger co comcast bid in november, was rebuffed by fox because it did not include a breakup free and the disney offer did now they've come back to the table with this fee. it's a big one >> yeah. it certainly is. is there still this, in your reporting, still this idea that comcast is building up the finances do you believe, based on your reporting, the people you're talking to, which is our parent company, comcast, that they will be able to secure the financing needed for this massive offer? >> that's what we're hearing
they will pitch it at a premium to the disney deal, which values fox at about 52 billion, 53 billion, excluding debt. what we've heard is they're trying to arrange 60 billion in financing, and it could go north of that. this would put a lot of leverage or a lot of debt on to comcast it has recurring revenue, it should be able to service that debt well given the size of its cable business these are staggering numbers but this is an unusual time in media with the other things going on with the threat of netfl netflix, amazon consolidation going on >> and you had vodafone, you have mentioned netflix overseas. how much is this media landscape is evolving before our eyes? seems like there's a lot going on every day >> it's incredible it's been tricky and complicated
because so much is going on. there's so many moving parts in the uk, we have sky, the subject of two competing bids, recommended bid -- sorry, a bid recommended by fox, which owns 39%, and comcast has come in over the top and is trying to buy all of sky you have disney trying to buy fox. and it will own sky if that comes off, and comcast about to pitch a new bid for fox in the u.s. there's a lot going on this is about the global marketplace. having the scale and breadth and being in enough markets and having direct to consumer relationships to compete with netflix, which has changed the game it has 120 million subscribers it can outbid traditional media companies for content, and media companies like fox, disney, comcast all need to get bigger >> it's a dramatic time in media. appreciate your insights
the national transportation safety board is opening an investigation into a deadly crash involving a model s tesla in florida two teens were killed. a third was injured when the vehicle crashed and caught fire in ft. lauderdale. the ntsb says it is investigating on whether or not the car's battery caught fire. it does not expect tesla's autopilot function to be a part of a factor in its investigation. ford halting production on the most profitable vehicle, the f-150 pickup the move comes after a fire knocked out production at a ford supplier in michigan 7,600 auto workers will be laid off temporarily. courtney reagan has more stories this morning your big individual stock stories now include rbs. the uk bank has agreed to pay 4$4.9 billion to settle a u.s. probe into the sale of
mortgage-backed securities before the financial crisis. analysts estimated the justice department could fine rbs up to $12 billion. rbs will take a 1$1.4 billion charge in the second quarter south korea says it's reached a deal with general motors to inject 4$4.4 billion into the automaker's money-losing korean unit and gm will not reduce its stake in the unit for ten years and establish a new asia pacific headquarters in south korea bookings holdings reported first quarter earnings and revenue that beat forecasts as travel bookings beat 21% the company formerly known as priceline issued weaker than expected revenue guidance for this quarter shares are down by 6.5%. >> we'll see you in a minute,
courtney see you soon on deck, walmart's big bet on india we're taking a look at the company's latest $16 billion deal and are you looking to sell your house there's a single best day of the year to list your home what day is that diana icolk has that valuable piece of news as "wex" rolls on. yeah, i'm afraid so. it's okay. this is what we've been planning for. knowing what's important to you is why 7 million investors work with edward jones.
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. welcome back walmart is taking its battle against amazon overseas. the retailer paying 16 billion for a majority stake in flipkart let's bring in jan kniffen and the retail guru, courtney reagan who will correct my me fail english. it's early thank you. courtney, give us the details. a lot of viewers don't know who flipkart is. >> flipkart is an e-commerce platform people want to compare it to amazon i think it might be more like ebay it is a platform connecting sellers and buyers they don't necessarily own the inventory they're selling. but it is the largest e-commerce platform shopping network in india. it's been there for about 11 years. these guys have been looking to partner up and do things in a
bigger way, more efficient way than they've been able to do amazon does exist in india they started their prime program in 2016. they said india was the fastest adoption of prime of any country so far walmart came in and is taking a $16 billion stake which equates to about 77% so they're the majority owner of flipkart now they say they may take on investors, but they will stay the majority owner >> is this walmart punching amazon in the face, jan? >> absolutely. they could not let amazon buy this amazon would own india flipkart is not just a platform, it's a payment system. >> like paypal >> like ali pay. >> a lot like alibaba. >> they could not let alibaba and amazon own india if they were going to be serious on the world stage.
india is either the best market going forward or second best going forward for retailing. walmart has to be there. i was stunned when the market said we'll take you down 4% because this thing loses over $1 billion a year >> didn't stop them from buying jet.com which was losing money >> yeah. the online company they paid 3 billion for? >> this is almost five times the size of that this is the biggest deal ever that walmart has done. i think it's important to point out, we have before, that walmart only has these 21 cash and carry locations in india they're basically selling to other small businesses it's because of the local indian government regulations that restrict foreign direct investment walmart would have a hard time going into physical retail in india. e-commerce is growing. go to the biggest player already there, make them better. >> courtney being kind they were a flaun-entity in
india. now they're the biggest player >> this does not mean there will be walmart stores in india >> courtney, i have to let you go you're due on television in new york city? >> i have to go somewhere else >> see you in a few minutes. bring some doughnuts when you come back. >> i have to run to another camera and come back >> i don't want you to think courtney vanished. walmart, the most american of companies, has got an aggressive international expansion strategy now, not just in india >> 25% of their business is already overseas the growth in the u.s. is not going to be that big so if you're going to continue to grow and be a real player, especially online, you need to be international india will be one of the biggest markets. >> at current growth trends, a lot of people may not realize this, india will have more people than china in about 20
years. they will be the world's most populous nation and they use british law. >> they're actually a democracy. >> unlike in china where it's hard to sue. there is a lot of optimism around india i want to switch gears, car pun intended, to a big story yesterday that did not get enough attention amazon tying up with sears so you buy tires on amazon, you can get them installed at a sears location sears soared 20% on this news. what do you make of this will this save sears >> no, it won't save sears, but the reason the stock went up is t the die-hard brand was worth more after the announcement, and the tire and battery centers, somebody may want to own them now. even if they hive it off from sears, they may buy it there was value created there in that deal. i do think it was a good deal? yes, for amazon more than sears?
yes. but sure, i understand why people like that those tire and battery centers will do business now >> you know what i love about doing a show at 5:20 in the morning. it's live. this is breaking now macy's has been downgraded to underweight. jpmorgan chase -- or morgan stanley downgrading macy's to an underweight. this came across the inbox here. the stock had a nice run, up 60%, but they believe return on invested capital will deteriorate. real estate gains are masking the underlying deterioration in core retail. macy's getting a downgrade from morgan stanley to underweight, effectively a fancy word for sell what do you make >> they were at 27 bucks to 21 bucks. they said they'll use an 11 times multiple on macy's but not
include real estate sales anymore, because they think those are winding down i don't think the real estate sales are winding down >> in other words, shrink their physical footprint or lease the stores back to themselves. >> or make the stores smaller, lease out part of it sell part of it. that's what they've been doing i think that will continue i think all the words are right. but i think -- >> i just got this how did you know about this? i put you on the spot and you seem to know more than i do. how did you know this? >> i saw it in the green room. >> so breaking news to me. >> yes i still like macy's. i would buy macy's kimberly has a sell, and she's looking at the real estate like it doesn't matter anymore. >> so you disagree with the call >> i disagree with the call.
>> why couldn't you have just said that at the top kidding. jan, good stuff. we have to put a camera in that green room jan kniffen, thank you let's get your mental wheels rolling a bit. seems like a good day for a mystery chart. jan, you're a smart guy. you're looking at the best performing retail stock in the past year. it's the only retail stock that has doubled in 12 months with any market cap of any size can you guess who this is? we'll reveal the answer later in the show all right. still to come, political picks even if i don't care about politics, we'll show you three stocks to own and three stocks to avoid ahead of this year's midterm elections. ghd gas prices are moving hier how much more might they go? new numbers when we roll on.
thought -- >> it is a race against time in hawaii the governor has signed an emergency order to avoid a massive explosion on the big island crews are working to move some 50,000 gallons of highly flammable chemicals out of the way of the lava. officials expect to have the chemicals relocated by the end of the day. one baby panda is reminding us no matter how hard you fall you can always get back up the national zoo showed this video of this panda going out on a limb before the branch snaps sending the animal crashes doin down don't worry, the 2-year-old gets back up and climbs up again. an important life lesson brought to you by a panda. >> you have to get back up and don't hang upside down on a small limb if we could run that video all
day, that would be a win what do you think? >> cheer us all up i'm down for it. thank you. back to business here's a question. what is the most important money story right now? is it oil? is it bonds? we asked you what it is. we will bring you the results after the break. and a royal wedding triple play not one, not two, but three trending stories as we countdown le brince parry and meghan mark'sig day stay with us royal exchange will be right back that's why i switched to the spark cash card from capital one. with it, i earn unlimited 2% cash back on everything i buy. everything. what's in your wallet?
three americans held in north korea are back on u.s. soil the president doing something unexpected around it we'll show you that ahead. three stocks to own. three stocks to avoid as we gear up for the midterm elections. and if you want to sell your home, we found the absolute hands down single best day to list your house on the market. diana olick has that coming up as "wex" rolls on right now. ♪ you have to go out if you are working, but welcome back. thanks for being with us on cnbc i'm brian sullivan thanks for watching. let's get you up to speed on the top headlines. president trump welcoming home three americans detained in north korea. he greeted them at joint base
andrews a few hours ago. speaking to reporters from the tarmac thepresident says their return marks a great night. ford halting production of the f-150 pickup truck after a fire knocked out production at a supplier in michigan 7600 auto workers will be temporarily laid off. and leon panetta slamming america's decision to pull out the iran deal. >> i think in large measure we lost our leverage in terms of getting iran to the table. iran has no incentive really to sit down and negotiate on anything so my concern is that in that vacuum we are left with a negotiation which is not likely to happen or some kind of potential military confrontation in the future. that's a lousy choice. >> you can find out more about these stories on our website. let's turn to the markets
and your money we put out a twitter poll yesterday asking what is the most important money story right now? is it the strong economy, higher oil, 3% yields or something else if it's something else what is it i won't get into that because 42% of you have now said that the strong economy is the most important thing trumping, if you l owill oil, yields and other we asked this to chad earlier in the show he agreed with our viewers we have the smartest and nicest viewers in the world do you agree with them >> i was one of the 42 i answered the poll yesterday. >> thank you >> we think that's the story the strength of earnings and the economy will shine through we are not discouraged by anything that happened so far this year. >> but you put out some interesting data here. of the 48 quarters since 1951 where earnings growth exceeded
20%, good news, we saw s&p returns of less than 1% during the first month 50% of the time. so in other words, stocks have not historically reacted to this great earnings news. >> i disagree. >> you disagree with your own point. >> there's another point that comes after that that point is within the next 12 months those markets are up 75% of the time on an average of 10%. >> almost like a delay, like a halt we have to pause and think about it, then they buy later? >> i think that's possibly right. the reason that could be right is you have to digest it and understand is it too good? is it peak is it happening in an environment where rates are rising is that rise benign or too sharp? that's all the things we're going through now. ultimately if that growth comes through, will you price it in. >> peak is a four-letter word. the great bob pisani has been talking about how people are using a peak earnings theory as
one reason why we have not seen the markets respond. >> look, here's what's going on in our view. we've been generating double digit earnings growth on single digit earnings revenues for ten years. you have an upward move in efficiency in companies. we call it the industrial revolution there's five key technologies where companies are becoming more profitable per unit of revenue. we think that will continue for a while. we don't think the gas is out of that >> so you don't worry about oil at 70, 75, maybe 80? the saudis reportedly want $80 >> they need to ipo saudi aramco i'm sure they would like that -- >> every day that story comes up you have to get yields, 3.5%, 4% before they impact the equity market >> i thought 3 was the bad number now it's 4
normally market multiples go up until you get to 5 if you want to be as bearish as you can. we're at 2% growth, 1.5% inflation, that's a 3.5% neutral yield. as long as rates move up in a steady pace we can support higher yields. >> how do we make money off this >> we like small caps. the repatriation of capital will lead to an m&a boom in the healthcare sector. international stocks, you have a nice buying opportunity here we think value cyclicals, financials, energy, industrials, materials. >> u.s. small caps, the baby eagle trade. >> i like it. gasoline prices continue to trend upward today's national average at 2.84 per gallon up nearly 20 cents from last month and 50 cents from last year doesn't sound like a lot, but we
use as a country about 150 billion gallons of gas a year. that's about 75 billion extra dollars we are spending on gasoline nationwide. $6 billion per month, not small numbers. >> switching gears now, let's go overseas we're getting new reaction to america's decision to leave the iran nuclear deal. the president of boeing mideast just spoke with hadley gamble, she joins us live from bahrain with more. hadley >> good morning. so he's also the vice president of boeing international. they stand to lose as much as 0 $20 billion in orders off the back of president trump's decision let's listen in to what he had to say >> we mitigated the risk of iran in our production plans and whatnot. for 777 and 737 there will be no impact at this time. beyond that, we're following the lead of the u.s. government and will consult with them as
necessary. >> you've been out in this region for a long time now was it about using cautious optimism when it came to that investment in iran >> we're a conservative company. we're careful about taking risks. with this particular effort we watch that so anything that happens with us with iran would have been and will be an opportunity as our chairman said. beyond that we're just going to follow the u.s. government on this >> i thought that was interesting that he basically was telling me it was cautious optimism from the beginning, that $20 billion worth of order from iran was not something they were putting on the books, because essentially as an american who spent a lot of time in this region he knew it might be too good to be true >> hadley gamble live in bahrain, pleasure. time now for the top trending stories
what will you all be talking about today? courtney reagan knows. she's back with those. >> if you love all things french, you're a froncofile. if you love all things royal -- >> englofile >> that's english in general royal family stuff isny jam. it's a royal wedding triple play madame tussauds's unveiling meghan markle's wax figure it depicts the green dress markle wore when the engagement was announced. wedding story number two, dunkin' donuts releasing a special doughnut in honor of the royal wedding. it's heart shaped, covered with chocolate frosting, vanilla frosting and stuffed with jelly. and lego lands windsor made a replica of the castle, horse
drawn carriage and the royals themselves >> two things. am i allowed to say what you just wrote down on my paper. she said i'm going to the royal wedding. you are going for cnbc >> nope. >> you're that much of a fan >> i will stand on the street and wave >> you're flying to england to wave >> yep going stand and wave >> she has her horse and carriage ready going with a chimney sweep and david copperfield. >> i got a fascinator and everything it's re. >> you mentioned doughnuts in dayton, ohio you sent me to bills i randomly ran into your sister-in-law. >> yes, that's right >> you told her i was going to be there >> yes, my nieces and nephews love them. >> what was that called? bill's >> bill's doughnuts. the best doughnuts you have had in your life >> that's free publicity, bill's where are the doughnuts?
courtney reagan, thank you. we found the single best day -- there's one day of the year that's the best to list your home. what day is that it's coming up after the break. and your political playbook. the corporate names you need to bank on and avoid during the midterm elections. this is your new name. this is your new house. and a perfectly inconspicuous suv. you must become invisible. [hero] i'll take my chances.
list your home diana olick has more on this and other cool real estate stories when is the best day >> if you want to sell your house you have about 12 more hours. or you have to wait until next thursday am i kidding no if you list your house on a thursday, it will sell faster than if you list on any other day of the week. that's according to redman why? here are some thoughts >> our market is programmed to look at houses thursday and to plan their weekends out. >> thursday because i feel like that gives people at work, looking online for homes, enough time to look at pictures, plan their open houses, what tours they want to visit over the weekend. >> in this competitive market, most of the agents are abiding by the thursday and friday and taking offers on tuesday. redfin claims if you list the house on a wednesday, you
can actually get slightly more money for it most agents i spoke to did not buy this >> as long as you debuted correctly, and you give it full market exposure, so a couple days of the weekend, that's how you get the most money >> jennifer thinks it's not just the day but the time, if you can believe it don't list it on a thursday morning when everyone else does or you'll end up on page two or three of the website, so you have to list it in the evening like 5:00, so you're at the top. because most people will start searching thursday after work. they'll be at the top then >> that's news you can use to sell your home any other theories out there we always hear about the spring selling season any other theories about the best time to sell a home >> every person you talk to has a different theory time of day, day of the week one agent says you should sell your house in the dead of winter, december or january,
even though spring is busier, more homes on the market, you have less competition among sellers, and the buyers are more serious. who would want to go out house hunting in december and january. if you're house hunting it means there's a specific reason you have to move so the first thing you find you will probably want to buy. even if you have to pay more to get it you'll do it. so dead of winter theory >> it seems like there are fewer and fewer open house signs and balloons going on. is the open house dying? >> it's kind of like retail. it's going online. there are so many virtual animated tours we showed you once a tour of a robot taking you through a tour of a house you can ask questions online, and some international buyers never see or walk through the house before they buy it a lot of agents are saying in this hot market now they're getting offers sight unseen. that's physically sight unseen
they've seen it online they've gone through the pictures and the virtual tour. some you can guide yourself with the mouse and go into different rooms. they don't feel the need because they have offers by the time they get to saturday >> is that something we need to worry about, people are buying homes without stepping stofoot them >> there was a small mortgage issue with that one. a lot of chinese buyers, international buyers, a lot of buyers in california buying in new york, they look online, they see what they want, they study the area there's so much information on real estate online, unless you want to go -- i do believe in the smell test maybe some start-up company wants to put that online i don't want to buy a house if i have not seen it if there's a cat, a smoker -- >> what about a cat that smokes? >> you always have a theory. >> diana olick, thank you.
let's find out what's coming up on "squawk box. becky quick is joining it's here >> i like the smell test from diana. that's a good one. she's right. don't buy what you can't smell coming up on "squawk box," a list of great guests who will be joining us, including the author of a flu book canew book called school could be. he has written this book after he visited 200 schools in all 50 states we'll talk to him about the business of reforming education and how we might get a fix on this and robert franks will be joining us he has a look at the most expensive suv ever rolls royce is involved. that should give you an idea of what kind of numbers we're talking about. and i'm not sure if you were here yesterday, if you saw the meek mill interview. >> i was here. did not see the interview. this was an important moment, we spent a lot of time talking to meek mill, the rapper who has gotten out of prison
but he's been caught in this vicious cycle of probation since he was 18, he's now 31 there's been a lot of people who have come to his defense including robert kraft and michael rubin who was with us yesterday, owner of the philadelphia 76ers, they helped get him out of prison for a lot of crazy things, like popping a wheelie which wound him back up in prison. we're using this as an example to not just talk about meek mill but to talk about the thousands of other men who are wrongfully incarcerated or caught up in this ridiculous cycle of probation, where they can't break out of the cycle they don't have advocates or money, or lawyer there's a can help them bring some issues to light. this morning we will be joined by wes moore, ceo of the robinhood foundation the robinhood foundation fights poverty in new york.
statistics show 1 out of every 5 new yorkers only makes $20,000 a year or less wes moore is someone who has written a book called "the other wes moore. he grew up in baltimore, inner city, spent time on street corners. found out there was another wes moore doing the same thing, hanging out with buddies, getting in trouble but our wes moore grew up to be a rhodes scholar, decorated veteran. the other wes moore grew up a convicted murderer spending a life sentence. so he looks at how this entire generation of boys are trying to find their way in troubling conditions we'll talk to him about breaking that cycle >> that's some good news there and some good work becky quick, big show coming up. see you soon >> thanks. still ahead on "worldwide exchange," today's mystery chart revealed and how do you mix politics and the stock market? larry mcdonald knows
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with the midterm elections looming closer, what should you be doing with your money there's a tie-in between the markets and the elections. larry mcdonald knows that, he's done a lot of good work. editor of bear traps, cnbc contributor. thank you very much. you did some interesting work. saw a note yesterday tying amazon.com to the midterm elections. please explain >> you know, president trump knows that president obama in 2010 lost 61 or 62 seats, and the great bill clinton in the '90s coming out of that big win against president bush lost 62 seats. so president trump knows in that
first midterm it's stacked against you. the populist agenda that trump brought in 2016 to america, that's going to come back with a sledgehammer >> what does that mean for the market from an equity perspective, why do we care >> you want to look at where are the sledgehammers. >> it's the whack-a-mole >> jeff bezos net worth has gone up $31 billion since january 1st. the post office has now 125 billion of unfunded liabilities. so that's the pension and healthcare obligations people are saying what's going on here. >> if i'm picking up what you're putting down, sounds like you're daring to go negotiate sieve on amazon >> think of the terminator movie. amazon is the terminator
21st century terminator. they're on a 19th century priciprice pricing mechanism. because of dysfunction in washington they can't fix the package pricing quick enough package volumes have exploded. regular mail volume is down 40%. the pricing mechanism was built for the old model now it has to get caught up. >> are you saying short the post office we can't do that do we short or go long fedex or u.p.s. >> fedex and u.p.s >> we like them. >> like them a lot because amazon's pricing structure deal with the post office will change that will increase the value of fedex and u.p.s. and their ability to raise prices. >> so u.p.s. and fedex would be a long idea from you guys. >> yes >> walmart as well why walmart?
they got whacked yet in this flipkart deal in india >> as walmart -- as amazon's a target, you think about the retailers who have gone out of business the last year and a half walmart used to be perceived by many as the bad guy. >> yes >> now do you think amazon is the bad guy if you will? the populist message is walmart is the good guy again? >> 400,000 jobs lost in retail so amazon silently has been subsidized by the post office because of this poor pricing relationship so that subsidization has helped put thousands of retailers out of business. that's a big populist message for president trump. >> really interesting stuff. long fedex and u.p.s larry mcdonald, thank you very much the mystery chart, can you guess what it is it's guess the only major retailer to
double over the past year. ges. a little random but interesting. have a spectacular day we'll see you tomorrow on "worldwide exchange. "squawk box" is up next. or even trouble with recall.e, thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember.
breaking news, president trump greeting american detainees freed from north korea. >> we want to thank kim jong-un. they are three incredible people >> we will tell you how today's events could pave the way for historic face-to-face talks between president trump and north korean leader kim jong-un. it's thursday, may 10, 2018, "squawk box" begins right now.
♪ live from new york where business never sleeps, this is "squawk box. >> good morning. welcome to "squawk box" on cnbc. we are live from the nasdaq market site this times square. i'm becky quick along with joe kernen and andrew ross sorkin. we will head to washington for more on the top story in a moment first u.s. equity futures are indicated higher dow futures indicated up by 15 points s&p futures up by 3 and the nasdaq futures up by 11. the dow was up 182 points yesterday. the nasdaq up by 73 points, and the s&p up by 25 points. you are looking at some rapid gains over the last