Transcripts For CNBC Worldwide Exchange 20240714

Talks on china and slacking off another red hot startup about to make its market debut. Its all happening on this thursday, june 20th as Worldwide Exchange begins right now. All right. Good morning, good afternoon, good evening wherever in the world you are. Im Brian Sullivan thank you very much for joining us here on Worldwide Exchange. This, my friends, is the chart of the day bonds getting bought the yield on the tenyear note exactly at 2 , but earlier this morning it actually fell below 2 that is the First Time Since President Trump was elected that we have seen a sub2 yield. This should drive down borrowing costs. If youre looking for a home, it could make mortgages more affordable well have much more on this coming up. First we have to get to our breaking news. U. S. Officials confirming to nbc that a u. S. Drone has been shot done over the strait of hormuz iran claiming responsibility the Iranian Revolutionary guard says the drone was shot down after it entered iranian airspa airspace the u. S. Says the drone was flying in International Airspace the u. S. Is calling this an unprovoked attack. Oil is popping on the news we are seeing a spike. Its come down a bit, were up about 2. 5 that drone attack comes less than a week since two tackers were attacked in oman. Iran for its part has denied any responsibility joining us now is the chief oil analyst at energy aspects. We have to stop meeting like this youre as good as anybody out there to analyze what happens when we have these events, the tankers, and now this. Are you surprised maybe that oil is not reacting more strongly . Well, weve seen this over the course of the last few weeks. Weve had a series of attacks, particularly the tanker one in which in some ways is far more direct when it comes to oil market imbalances. I still think, you know, the focus of the market is on demand and recession. The g20 meeting coming up, whether trump and xi will meet thats very much the forefront thats why youre not getting the reaction imagine a few years ago, a headline like this, wed be up 5, 10. If demand fears were to recede, the market will care more about these geopolitical events. Clearly theres been an es ka laying the u. S. Inventories are near record highs are we seeing enough oil to counter these types of headlines . Not at all. The u. S. Has built over april and may, if you look at the pricing signals from the coast, it shows draws are happening because of maintenance. And in china weve been drawing oil, and there is no floating storage around globally weve drawn down stocks its just that the visible inventories are high, and now with demand fears people are expecting we wont get the draws. Thats whats driving prices if this is iran behind it, as the United States has said, iran denied responsibility, the tanker attacks, now this, it seems to be heating up rather than cooling off more headlines you think, will they ultimately drive prices higher, despite the concern about a Global Economic slowdown i do think so look, neither side wants war clearly things are escalating. Chances of miscalculation now are rising we have seen a shift within iran its no longer the focusing on talks, but much more the irgc are in the driving seat now. Clearly there will be escalation i think the g20 will be important if we get some stability and receding of the fear that we will not get into a global recession, i think prices can go up very quickly thank you very much for joining us seeyou soon. Will today be the day that we hit new alltime highs for stocks dow futures are up 215 right now. All this as jay powell offered some new dovish signals to investors saying the central bank is ready to act to keep u. S. Growth on target. Since the beginning of the year weve judged that our current policy stance was broadly ppropriate in light of increased uncertificateties and muted inflation pressures we emphasize that the committee will monitor the implications of information for the Economic Outlook and will act as appropriate to sustain the expansion. It is not just equities that are being bought were also seeing strong buying on bonds we are at exactly 2 on the tenyear yield but a couple hours ago we saw the yield drop to as low as 1. 97 . That is the First Time Since trump was elected that the yield was below 2 a surprise to nearly everybody if you watched this network a year, year and a half ago, most people were calling for yields of 3 , 3. 5 by this time this could be a candidate for surprise of the year gold continuing its terrific year up another 2. 5 to 1,383 thats golds highest level in more than five years lets figure out what has been going on and what may happen in what has been a topsyturvy yeear joining us is danielle eddimartn booth. What is going on we are having a Recession Party in the markets when you look at past fed easing cycles, financial conditions are very loose going in. So theres a misperception about, oh, my gosh, theyll cut because markets are so tight opposite they tend to be loose when rate cutting cycles begin then the news that the reason theyre cutting rates sets in with investors, theyre like, oh, i better sell the news eventually they do as you may know, theres twoways that parties can end. Everybody has a polite goodbye, shakes hands, goes on their way, wakes up the next morning and goes for the run or the night ends really badly with billy having to be poured into the back of the taxicab and having a bad morning then he comes on sit here theres no billy. I made that up how does this Recession Party end . Theres a lot of people operating under the assumption that the fed will be able to walk this tight line, thread the needle, whatever cliche you want to throw at it, and engineer a soft landing if youre seeing stocks push to new alltime highs in the face of we had Mortgage Applications out yesterday morning, they were down. Mortgage applications shouldnt be down when but they did double the week before mostly refinancing there has to be homes to buy as well. Theres not a housing supply issue in many cities i cant quit counting the for sale signs especially in new jersey and other thats a tax issue. The inventory of homes is going up dont worry about this look at this. The dow futures are up 215 its possible today and you might hear this a few times we are that close to alltime highs or maybe even hit them well watch jim and the gang at 9 00 a. M. And wait until the market pops open if the market and fed are concerned about a recession, explain that the market is much more preoccupied with liquidity what does that mean they see there is a 100 probability, not a lot of gray area there, 100 probability of a rate cut this year theres a 24 probability of a 50 basis point rate cut in july, on july 31st were weeks away from that if we get there that quickly, if we get to the zero bound that quickly, because the fed tends to lower Interest Rates i dont care what the dot plot said yesterday dont like saying dot plot, it sounds confusing. Powell doesnt like it either he talked the dot plot down hymn himself. He said it is not something up for debate dot plot, everybody on the fed is asked where they see rates to go. They put the number in a thing so you can look at all these dots its just their expectation of where they see Interest Rates a year out, two years out. When we look at that dp, the fed lite brite, it shows a hike. In 2021 the only thing the dot plot showed yesterday which is why the market extraordinarily priced in alltime highs today, is the elimination of the word patient. You had one person saying there wouldnt be a rate cut this year so you didnt even have a unanimous view that there was going to be a rate cut in 2019 and all that its saying its going to do is reverse the december policy error. In 2021 well get back on the rate hike path really seriously, people. I dont know what theyre thinking how big of a mistake was it last year, the stock market tanked thats a fair word it was the worst december since 1928 it was all those things Stanley Fischer was on the wires over the weekend, he gave an interview and said december may or may not have been the fed moving to spite the white house. Showing the white house if youre going to strong arm us and bully us publicly on your twitter feed, well hike rates fed is not supposed to make policy in spite of anybody theyre supposed to be independent, apolitical and make policy based on the economy. The fed has changed, at least according to your book you strike me as a guns and roses fan. All we need is just a little patience we have news on the trade front, maybe good news tensions appear to be cooling off between america and china. Robert lighthizer telling congress he will be speaking with a top chinese official in the next day and a half. All this ahead of President Trumps facetoface meeting with xi jinping later this month. At the same time ceos from some Big American Companies are heading to china this week where they will meet with top trade officials there. Those companies are names like dow, upz, f. P. S. , honeywell the Mexican Senate voted overwhelmingly to ratify the u. S. Mca, yesterday, the new nafta. Justin trudeau isset to meet with trump and congressional leaders today to lobby for quick ratification our congress has not even yet set a date to vote on the deal when we come back, much more on the attack on a u. S. Military drone near iran. The news sending oil spiking a live report coming up. And could the Permian Oil Boom turn into a boost if the wells run dry . Some in opec think so. Well have comments from the ceo of a major u. S. Oil company on that ahead. And its a term youll hear a lot of today, direct listing what the heck does it mean get readfoy r a thursday picker upper as we lay that out in laymans terms higher expectations. The light beer youve been waiting for has arrived. Corona premier. Futures up 220 points right now s p and nasdaq green the yield on the benchmark tenyear note fell below 2 for the First Time Since november of 2016 get ready for Mortgage Rates to fall again messaging service slack set to begin public trading today on the New York Stock Exchange. It is the latest company to choose a socalled direct listing instead of a traditional ipo. The company will trade under the Ticker Symbol work the Reference Price is 26 a share. That is not an opening price or an offering price. Instead that number will ultimately be determined by the designated market maker at the nyse you will hear that term direct listing a lot on this network today. How does that work whats a Reference Price leslie picker explains a directingi differs in three major ways one no underwriters. In an ipo underwriters will market shares, set a price based on demand. Direct listings involve Financial Advisers, usually from the same wall street firms these bankers provide advice about the process and help with the discovery of the opening price. Financial advisers cost less than underwriters. Two, no cash instead of raising money, the primary purpose of a direct listing is to create a Public Market for a stock by allowing early invest and employees to sell and newer investors to buy. Three, no road show. Traditional ipos require executives to spend two weeks on the road visiting with investors to pitch the deal and drum up demand direct listings require one day, just a few hours for executives to webcast the pitch for any investor who wants to tune in. Well have much more live with leslie picker coming up later on in the show. Still on deck, the latest on the attack that brought down a u. S. Military drone in the middle east. Oil is popping on the news plus the ceo of one of americas biggest oil and Gas Companies comments saying opec is wrong that the Permian Oil Boom will run into a bust sooner than expected dow tufures up 223 see you in two minutes everyones favorite. Theres just one thing hurting us more than Student Loans Credit Card Debt. Sure, dad, call us irresponsible. Were only dealing with insane living costs and housing costs. Its just not right. But with a personal loan from sofi, you can consolidate your Credit Card Debt into one monthly payment. And get your future right. Get your money right with sofi. The first survivor of ais out there. Sease and the Alzheimers Association is going to make it happen. But we wont get there without you. Visit alz. Org to join the fight. Applebees new loaded chicken fajitas. Now only 10. 99. Welcome back in case you are just joining us, breaking news. Oil is surging 2. 5 as a u. S. Official confirms to nbc news that iran shot down a u. S. Military drone over the strait of hormuz, thats the narrow stretch of the water connecting the persian gulf to the arabian sea. About 20 to 30 of the worlds daily oil flow flows through it. The official said a surfacetoair missile hit the drone. The u. S. Is calling this an unprovoked attack. Well have much more as the story develops there is a school of thought among some in opec that the u. S. Shale oil boom will turn into a bust sooner than later because fracking sucks such a huge amount of oil out of the ground that volumes are about to fall many in opec are counting on it. We spoke to the ceo of devon energy, and he says that thought is wrong this entire revolution has taken place with horizontal drilling, hydraulic fracturing, it has a great deal of sustainability to it i mentioned that we have at least a 15year inventory of higher return projects thats without assuming any additional technological improvements in the future which will i ef tababinevitably happe. This is great for the economy, great for our national security. Were producing a commodity that is fundamentally important to the lifestyle of all americans were proud of what were doing. Were proud of the revolution we generated here to help the fundamental economy of the United States. You can see that full interview on our website check it out on deck, a major decontamination effort is under way in nevada. Well find out why ahead. And the number of the day is 12. 5 triiolln. Stay tuned to find out why t 20. T 20. And also be able to use apps to book superpersonalized trips on shiny new phones from the future. Plus, i need freedom to move my workloads wherever, whenever but manage it all from right here. And thats the cloud i want. Simple, right . Expect more from your cloud. Ibm cloud. Here are your Morning Headlines from nbc news. A major decontamination effort is under way in nevada after a Train Derailment shut down a 60 mile stretch of a major interstate the train was carrying Hazardous Materials when more than 20 cars overturned spilling diesel fuel. No injuries were reported. A dangerous storm is moving across the southern United States more than 100,000 people across arkansas lost power overnight. In texas people reported hail as large as four inches along with heavy rain and powerful wind gusts. There have been no reports of injuries after a possible tornado tore the roof off this Church Sanctuary in greenville, techs. A shocking turn of events in the david ortiz shooting dominican authorities are saying it was a case of mistaken identity claiming the hit was for another guy sitting at ortizs table. In the days after the shooting, 11 people were arrested including the alleged gunman authorities are still looking for the person who funded atth hit. More Worldwide Exchange right after this clients voice remember that degree you got in taxation . danny of course you dont because you didnt your job isnt doing hard work. Its making them do hard work. And getting paid for it. vo snap and sort your expenses to save over 4,600 at tax time. Quickbooks. Backing you. The first survivor of ais out there. Sease and the Alzheimers Association is going to make it happen. But we wont get there without you. Visit alz. Org to join the fight. Iran downing a drone near the persian gulf the u. S. Calling it an unprovoked attack. This just a week after iran sabotaged two oil tankers. Oil is surging. Running out of patience. Why one word by the fed may have added billions to the market listen up slackers another red hot startup about to go public. But how its doing it may have wall street bankers seeing red its thursday, june 20th youre watching Worldwide Exchange right here on cnbc welcome back in. Good thursday morning. Thank you very much for being with us on cnbc. Im Brian Sullivan stock futures are higher, much higher in fact, something really interesting is happening right now. This, my friends, is why you get up so early to watch us on Worldwide Exchange. The s p 500 is 0. 94 from a new record high. Right now s p 500 futures are up 0. 93 . That is how close we are from a record high if the market opened up now the yield on the tenyear note fell below 2 earlier this mo morning. Rear at 2. 00 right now. Buyers have come into stocks and bonds. 12. 5 trillion, thats your number of the day. Well show you what it means and why it may be impacting our bond market and maybe impacting Mortgage Rates as well we have to get to that big breaking news out of the middle east oil prices up 2. 5 after an american drone was shot down over the strait of hormuz. U. S. Calling it an unprovoked attack lets get to hadley gamble live in the region. Good morning thats right now, u. S. Officials, at least one of them has confirmed to nbc news that a u. S. Rq4 goblobal hawk drone was shot down in International Air mace through a surfacetoair missile and they say it was International Airspa airspace iran saying earlier today it was a drone in iranian airspace. The pentagon clarifying that were looking later today for a statement from the pentagon or a briefing to clarify those comments its important to point out this is an area that in recent weeks has been the cause of some major frustration, not just for those in washington, but also those here in the region weve seen attacks on at least six tankers in and around the persian gulf, the strait of hormuz area, and also around the gulf of oman off the coast of the uae when we talk about these six tanker attacks, none of this is happening in a vacuum. Weve seen a spate of rocket attacks as well in iraq in the last 48 hours, not just in basra but also on u. S. Facilities closer to baghdad. Brian . Hadley gamble, we had those two tankers, you were just off that port. Is there any indication that the United States navy is either already or will soon have to start escorting not every super tanker but a lot of them 30 of the worlds Oil Every Day going through that narrow stretch. Absolutely. This will raise some bigger questions for the Trump Administration as well weve heard again and again over the last 48 hours or so a willingness on the part of saudi arabia and others like the uae for payment towards the u. S. Military, towards the u. S. Navy for that tanker escort thats a conversation thats been had again and again we heard as well over the last 24 hours from u. S. Military officials saying there that without that payment theres no real incentive for the United States to pay that close attention to these tankers because at the end of the day all of this oil, where is it headed you and i both know most of it is headed to asia. It certainly is hadley gamble, thank you very much maybe oils little rise is good for the equity markets. Energy shrunk as a percentage of the market you want most seshgts ctors of e market to participate. Dow futures up 0. 93 s p futures up 0. 96 you will hear something i think about a new record high for the s p 500 on this network today. All this, of course, coming after the fed left rates unchanged, but really came out like a prince song the doves out there, they were not flying they were not crying, they were there. The tenyear yield tumbling below 2 earlier today for the First Time Since President Trump was elected. Were exactly at 2 right now. If you have not been paying attention this may be, along with bonds, the surprise of the year gold gold is up another almost 3 right now. Its at its highest level in five years lets talk more about the fed, what they did and didnt do. Joining us now is our senior economics reporter, steve liesman. Maybe what theyve done, steve, a big round of thanks to you youre out there covering the fed like nobody out there in the world. Of course the markets are reacting to the fed. Therefore the markets are reacting to you. Thank you if we hit new record highs today. Wow i did not expect that, brian thank you very much. I dont know if i take credit for any of this. Im doing my job here, as you know lets talk about the fed it was an expected but still a sharp turnaround for the Federal Reserve. The Federal Reserve keeping rates unchanged but dropping its policy of patience it lost patience and adopted a clear, easing bias what does that mean . In the months ahead the economy is essentially guilty of weakness and needs at least one rate cut unless proven innocent butunexpected strength the baseline outlook remains favorable the question is whether these uncertainties will continue to weigh on the outlook and thus call for additional Monetary Policy accommodation. Many fomc participants now see the case for somewhat more accommodative policy has strengthened lets look at this turnabout. Lets look at how the fed changed and then the market changed. Okay first, back in march, march meeting, no fed official, not one, forecast a rate cut this year now eight are forecasting at least one cut. Seven of those eight forecasting two cuts fed chair Jerome Powell said even those not forecasting cuts are leaning that way now, lets lock at how the mloo the market is priced 100 chance priced in of a july cut. 80 chance of a second cut in september. And a 61 chance of a third cut or 75 full basis points of easing by december Jerome Powell also indicated that the fed could change i plans to end the runoff of its Balance Sheet as soon as july instead of september that would provide more stimulus. And he responded favorably without committing to a question about research that shows when rates are close to zero, its best to do more cuts rather than fewer. The translation, a chance of a 50 basis point cut in july you wonder why the market is at or near alltime highs okay. Theres only really four words and terms that scare me with regards to the market and economy. You know what those four are always its different this time. Good. Yes. Okay at this hour. Always, never, forever, and 100 when those words are uttered in the markets you have to get nervous. Maybe everybody is too far on one side of the thinking when i see 100 chance of a july rate cut, one has to wonder what if we dont get it i think the market has been aggressive in pricing in rate cuts from the beginning. I dont think it was wrong to price in cuts when you had the mexican tariffs coming along when it became sort of more obvious that it looked like the tariffs themselves and Global Economic weakness were worse than forecast. I think thats part of the turnaround i think its overstating to do 100 by july, but you have to say okay, the fed has a forecast pencilled in of 2. 1 gdp growth. That forecast i think is contingent on those rate cuts being in place you would have to do better. Lets say if our rapid update starts shooting up above 2. 5 , when that july data starts coming in in july, that is when i would be baking out the possibility of a rate cut. That unexpected strength that we talked about 100 chance of a cut in july. Maybe even a half percent cut. Thats big news. Steve, thank you for that reporting. Thank you for the alltime highs that we may hit today. Not me. I know. Take the credit. Steve, thank you very much up next, cut us and the markets some slack everything you need to know about slacks big and under usual market debut we have a leslie picker upper. And 12. 5 trillion reasons you may want to rethink investing outside of arimeca its your morning rbi. Its ahead youre here to buy a used car, truck, suv. Thats smart. Truecar can help. Its great for finding a new car, but you already knew that. Its also great for finding the perfect used car. Youll see what a fair price is and you can connect with a truecar certified dealer. So no matter what youre looking for, there it is. This is how buying a used car should be. This is truecar. upbeat music welcome back dow futures are up 235 . The markets lately have been red hot. Guess what another Red Hot Company is about ready to make its market debut today. Lets get to leslie picker outside the New York Stock Exchange slack will begin to trade later today. In a rather unusual way. You are correct, brian. Slack shares should be trading by midday today. Slack sells a software that it says serves as an email replacement for internal communications the question for investors who are looking to buy in today is will slack be able to transcend messaging into becoming a broader app for companies. Now, as you know, slack is pursuing a somewhat unconventional route towards the Public Markets a direct listing as opposed to an initial Public Offering that means the company did not set an ipo price last night and sell shares at that price. In fact slack is not raising any money at all it has about 8 800 million in cash on the Balance Sheets so it says it didnt need to raise money through an ipo the nyse did reveal a Reference Price of 26 a share last night, which is more than double that price that invest paid in its latest private fundraising round last august. That may not be indicative of where the price opens today. Now, one piece of good news for slack is that havent ipos of pager duty and zoom are more than double their respective ipo prices they each have a similar Business Model and Product Offering to slack. That may bode well for slack as investors continue to show interest in these High Growth Software companies what kind of is there any way to gauge the interest . No. In fact, we wont really know the interest until early this morning before shares start trading. There was no Real Marketing like you would see with a traditional ipo. There was no road show where they would go around, drum up demand, receive indications of interest from investors and try to assess what that interest is. Slack does have Financial Advisers whose job it is to suss out the Capital Markets and what they are looking for from the company in terms of price. But the actual trading and where the demand is wont be known until a few hours from now when the marketma makers start matchg buyers and sellers should be a busy day. We appreciate it thanks, brian. Lets talk more about slacks decision to go this nontraditional route joining us is John Martinko from drexel hamilton. You heard leslies explanation there. How much going public this way, is there any protection for invests on the downside . Do they make sure there are some buyers lined up that if this bad boy starts to slide theres going to be some support i think you have to understand what exactly is a direct listing you have to understand what the Reference Point is you have to understand how there will be a designated marketmaker, probably bob pisani might tap him on the shoulders today and how they hired Financial Advisers to drum up that demand. Do you think there is going to be a lot of demand for this i think what the nyse is trying to avoid is another uber i do. I think all the pager duties, all the names rattled off, if youre a portfolio manager, you have to start your accumulation of this company at some point. 10 million users, a well known household name, and the fact that they do have cash on the Balance Sheet. There is a lot of things around a direct listing that we should probably get into as far as those that are selling the stock today. I would imagine one of those things ff, if this was considerd a better way to do it, why wouldnt more companies do it this way this is a better way to do it for not paying fees. Anywhere north of 6 , 7 of growth proceeds goes to banks. In this situation slack felt our name is well known we dont need Investment Bankers to help market the Downside Risk is that you didnt have the traditional book bill that leslie was talking about over the two weeks you can firm up a price. I would point to, though, in the prospectus, that is where all the answers lie. Right there in the first one or two pages it did say it had a 26. 38 average from the month of february to may of this year thats why youre seeing a Reference Price today of 26. So 26. 80 is in that prospectus where they are trading internally i understand you dont want to pay these big fees to banks, but the banks do serve a role in sort of marketing those securities to make sure they are taken care of. Do investors have to worry when a company for lack of a better term, when they get cheap on the ipo not at all. I think theres demand the banks will be there. Again, point to the prospectus, theres well over 10, maybe a dozen that i saw that had been hired as Financial Advisers. Those clients or those banks will participate today you should see a Strong Demand today. That book will be built on the Stock Exchange like when you launch any other ipo and open up for its first print price. John martinko, excellent stuff. Its a complicated issue, you made it easy to understand appreciate it. Take care. More on the breaking news out of the middle east oil prices up 2. 5 the United States saying iran shot down an american drone near the persian gulf new details just coming in to the cnbc newsroom. And your number of the day, 12. 5 trillion. Y . Y is that your number of the da well tell you in the rbi coming up lets bring you up to speed on some breaking news weve been tracking a u. S. Drone has been shot down over the straits of hormuz outside of the persian gulf. Iran claiming responsibility the Iranian Revolutionary guard says the drone was shot down after it entered iranian airspace the u. S. Says the drone was plying in International Airspace the u. S. Calling this an unprovoked attack. Oil prices are higher, up 2. 5 overseas we will continue to monitor this story. Futures, theyre shrugging it off or maybe oils pop is helping futures. Energy stocks are not a big part of the market but they are a part of the market we are seeing dow futures up 237. S p 500 futures are off exactly the same amount right now up, rather, where they would be needed to hit a new alltime high should be an interesting day forfo the equity markets today its been interesting for bonds. The yield on the tenyear note at exactly 2 right now. A couple hours ago it was down to 1. 97 , under 2 the lowest level since President Trump was elected in november of 2016 joining us now to talk about this, the markets, everything else, tim seymour. Also joining us is silvia jablonski. You sat down and you said brian i have breaking news from our data here, which may explain why futures are moving up. You are seeing some buying activity by your clients in the oil and gas sector in the last 30 minutes theres an increase in volume weve been seeing it over the last week or so since the last attack on the oil tanker weve seen our three beta energy etfs trading up about 100 to 200 higher than the 20day average daily Trading Volume so these are they mimic the move in oil and gas threefold these are people placing extreme bets shortterm extreme bets but theyre bullish on oil because ostensibly maybe these unfortunate attacks. This essentially in theory will decrease the supply of oil. If demand stays steady, you have opec cuts, geopolitical stuff going on, it could positively impact the price of oil. Tim seymour, i know oil and gas has collapsed. Its about 5 , the lowest its ever been. It Still Matters would a slight uptick in oil be a good thing for equities . Its part of the Risk Appetite and risk aggression if you add what the fed did did to what the ecb has done, and people are less impressed by the ecb because they have less room to run, you have a case where first of all you could be structurally cautious and tactically optimistic here i think the other support for oil might be look at the dollar. The Interest Rate differentials between the u. S. And europe have come at 110 basis points since the highs in november. You have a case to be made for a slightly weaker dollar in the shortterm certainly again, if differential central bank measurements are also coming in, that will be dollar supportive. It will be commodity positive. Sure, energy has been a place where a lot of investors have waded into the water cautiously. A lot of times every time they do that they get whipped around. I think the driver for oil prices will be Global Demand supply disruptions have a femoral effect well see. I agree tactical optimism is a good way to put it. You have a dovish fed, potential optimism in g20, positive tweets coming from trump and cctv oil prices helping the market. You told us people are betting bigger on these three times bullish oil and gas. Are they getting that bullish on just the macro equity markets . Are you seeing people roll the dice and place big bets on stocks just yesterday the biggest inflows were in Semiconductor Bull funds, tech bull funds, china bull funds leading indicators. So its all of the f. A. N. G. Growthtype stuff which leads us to believe in the shortterm people are bullish that the fed will help push along expansion that potentially tariffs will have a resolution sooner rather than later in the nearterm we are seeing that pop nearterm pop on semiconductors interesting stuff. Tim, i tweet out whenever i hear never, forever, always, 100 , i get nervous. I was going to ask you about that but i have to ask you about something that just crossed. I know you have not seen the call lets do this moments ago, Goldman Sachs reiterating their underperform on tesla, but cutting the target on tesla to 158 from 200 the stock is at 229. Goldman saying the stock will fall 30 they came out, tim, and said we dont believe that the companys sales expectations are ultimately going to be met we know you have a lot of strong views on tesla what do you make of this call . Im sure the stock, and while youve seen a 40 move in the stock, its still a move that i think needs to address the demand issue the balance shed issuet issue,h company told you effectively that youre going through a restructuring. It comes down to demand for this company. The street now at a 18 180 hmovi more bearish it makes sense all the things are lining up here as someone that is negative on the outlook for the company and positive on effectively the car, but that doesnt matter. The Management Team has done a poor job of addressing the Balance Sheet in my view tim seymour, thank you for that time for your morning rbi. While we usually like toepd the sh to end the show on a positive note, today were going super negative weve been raising the flag on countries with negative debt germany, france, sweden, switzerland, all negative. The total value of negative debt around the world, 12 12. 5 trillion thats your number of the day. Random but interesting dow futures up 242 oil is up. Big day for squawk box. Theyre next see you tomorrow futures sharply higher and yields are falling to multiyear lows after jay powell left the door open for future Interest Rate cuts. Breaking news. Iran shot down a u. S. Military drone overnight, and crude prices are spiking and its public debut day for slack. Well bring you an interview with the companys ceo before the stocks first trade on wall street its thursday, june 20, 2019 andrew has that nice shot again right near the New York Stock Exchange squawk box begins right now. Live from new york where business never sleeps, this is squawk box. Good morning welcome to squawk box here on cnbc were live from the Nasdaq Market site in times square. Im beck along with joe kernen andrew is reporting live from federal hall in lore manhattan andrew, lots going on. Theres a reason youre there today. Tell us about it youre back, im going. Slack making its public debut right here at the New York Stock Exchange via direct listing. At its Reference Price of 26, the Software Company valued north of 15 billion. Could be 16 billion or 17 billion. Well have an interview with stewart butterfiel