Of u. S. Inventory. Its wednesday, november 6 Worldwide Exchange begins right now. Welcome from wherever in the world you may be watching. Im Brian Sullivan futures are not giving us a lot of help there. Flat to slightly down. They were up 10 a couple of minutes ago. We have a long way to go this morning. It has been quite a run for the dow lately nine stocks in the dow are up 10 or more in the past month and now 14 of the dow 30 are up 30 on the year. 3 m, walgreens and pfizer are the only ones down the neeld in the 10 year is 1. 84 Pay Attention to this. Japan, the nikkei slowly grinding higher. Now up 9 in 30 days 9 run, we talked about this about a month ago. Japan has had quite a run. In europe, no run. We are not seeing a trade theme here new this morning, Japanese Technology firm reporting a massive loss it has been hit by the following of two of the best bets. Wework and uber. Rahel joined us. Reporting the first quarterly loss now casting doubt on the ce os posting. A operating loss of 6. 5 million compared to a profit of 6. 5 million a year ago. Suffering a nearly 9 billion loss last year, they were forced to spend to bail out wework and Adam Neumann Wework fell by 3. 4 billion in the quarter. Masa son did not mince words this announcement is not good at all it is a big negative in the three month quarter result is the size of the negative is probably the first time after the foundation of the business i want you to look at this picture. We are actually in the rough sea. Softbanks vision fund has vested 88 billion in companies. The value of listed investments including uber and slack fell. But soft bank will go ahead with the launch of a Second Vision Fund saying his valuation of wework was not right but he Still Believes it is a solid business. Hes standing by it. He has to even with these results well see you in a bit. Lets get a check on some of the mornings top stories. Xerox considering a buy of hp the company has an informal funding commitment from a bank hps Market Company is four times bigger than zerox and sales are far less than hps nearly 60 billion and walgreens exploring a plan to go private. They have a market value of 54 million. One of the few dow stocks we noted lower this year. After talking about it more than a year, the fcc has approved tmobile and sprints merger the tie up still faces antitrust challenges another fed meeting a month away, no more rate cuts expected to be this year. What will be the big theme driver Going Forward good morning, erin what is going to be the driver for me, it is just having a lack of negative news. No bad news is the good news. We have pretty good stable necessities. We dont need trade war headlines we dont need a positive outcome, just a lack of negative news. As long as we see retailers cut back in the holiday sales, i think this bull market will keep running through the end of the year. That will really be something extraordinary where we get a new tariff it looks slow and steady for the next few months and we should continue to see this bull market november to april, the average gain is 7 to 8 going back to 1950 weve had a heck of a good run you heard the stats. What makes you remain optimistic one, there is still room for the parts of the market that havent had good runs yet. Weve seen value stocks from industrials, health cares, tradition follow economy theyve been out performing the past few months. Weve really seen that also seen potential for value stocks growing at a faster pace for next year. What is a value stock these days like your ibm, microsoft, deere, caterpillar, anything in health care. Theyve popped all of your financials any financials is a value. These stocks, they have traditionally have lower growth for the last three years but the spread between growth and value is much smaller. We are talking 11 versus 8. 5. There is not a big difference but the valuations for Growth Stocks are 50 higher versus value stocks this is the year where you can get a little more defensive. We are in an area of lowered Interest Rates this is the one area you can still get solid growth inching towards phase one we get a deal is the market going to go up or has the market already priced that in we are trading at about a threeyear average we could easily go up another 5 and still be within a value range. We have heard the story about walgreens and xerox. Is it possiblethat market just stays afloat in part because the pool of assets continues to shrink partially especially as we have a robust private investor field it is possible we keep these higher rates and growth. We are looking at 10 Profit Growth each year not bad at all this is a real possibility erin gibbs. Always a pleasure. New questions surrounding softbank posting one of the biggest quarterly losses in history. A big day for uber, early investors may not be unloading their shares as the ipo lockup ends bringing us today todays big number 1. 7 billion. Thats how many rides and food deliveries did in the third r. Arte up 31 from the same quarter last year. We are back after this this is a problem that affects each and every one of us. Together with ibm, we created a whole new kind of School Called ptech. Within six years, students can graduate with a high school diploma, a college degree, and a pathway to a competitive job. You know whats going up today . My poster. Today, there are more than a hundred thousand ptech students around the world. Its a game changer. Good morning. Welcome back the dow now down about 18 points one story we have been watching is uber because the post ipo lockup period expires today. About 90 of shares will be available for trading. That would usually put a bunch of downward pressure, analysts say it could be different but why . Many of the Share Holders are losing water uber shares are down 30 about 545 million shares purchased before the ipo are currently in the red uber shares down almost 2 again in the overnight market. One of the many startups that softbank sunk its teeth into lets talk more about softbank and its ceo masa son blind spots threaten sons 100 billion vision great to have you on is wework and uber going to change masa sons vision it is the question everyone is asking. If you remember when the vision fund started it was all about 2016, 017 big roll out with saudi arabia, the concept of Artificial Intelligence and the future of everything and technology at the heart of this wild japanese investor you look at their investments. It is uber, wework it is not the artificial ai boom they are interesting developing companies that have been a big part of the economy but not these moon shot bets they are a late set of investments. What has happened now is that soft bank, instead of the smart money riding in has now come in late to these companies and now when they go to exit to the Public Markets they are saying actually this company isnt worth what you paid for in the drive at market. He said to some degree, he is humbled by what is happening here i dont think it is a crisis but it feels like one from the outside. Is it a crisis . It is a very challenging moment hes worked to raise hundreds throughout the year. It was voda phone, it becomes an investor of assets not an operator of assets. To do that, you have to show a return if you have something add bad as wework and three weeks later, it is only worth 3 billion. With a concern of whether it will ever be a profitable concern, it is a proper crisis in the middle of a fundraising expecting the returns. Youve leveraged the coupon on 40 billion of debt. Softbank has 160 billion of interest baring debt things need to go right all the time huge set backs like this, huge corrections, a loss of faith in your ability, then yeah, it is probably a crisis. Lets be clear, masa son is an investor and hes a gambler you talk about leveling up 40 billion on 100 billion fund youve got a Saudi Investment Fund hes making some big, potentially dangerous bets hes a risk driven gambler. Hes the guy that would put 20 billion into ali baba. He is a risk addicted deal maker. That is the best way to describe what hes about. Hes said he only wants to spend 3 of the time managing softbank and 90 of the time making Investment Decisions there is culture clashes, power struggles. Some of the guard rails have quick the company the president quit in 2017 he was very much against the wework investment. Another left the company in april. Another guard rail against some of sons instincts mark schwarts, apparently he became fed up with the culture and some of the stories and left it is not just a story of investments going badly and a leader who likes making deals. Checking out your piece a very Interesting Company have a feeling well be talking about softbank to come a one two punch for President Trump as he suffers a political loss in one key election and a top diplomat changes his testimony. Tee why investors should tak no of what could be the biggest levered buy out in American History sundown vitamins are all nongmo, made with naturally sourced colors and flavors and are gluten dairy free. Theyre all clean all the time. Even if sometimes were not. Sundown vitamins. All clean. All the time. Even before they need it. Need, with esri location technology, you can see what others cant. Investment opportunities beyfirsthand, like biotech. Ne because your investments deserve the full story. T. Rowe price invest with confidence. Whether your beauty routine is 3or 57,. Make natures bounty hair skin and nails step one. Its the number one brand uniquely formulated for silky hair, glowing skin and healthy nails. Natures bounty, because youre better off healthy. Welcome back. A lot of results from yesterdays big election day in new york now with that and more a blue wave over the 2019 elections. Democrats pulled off some major upsets the apparent winner in the kentucky race narrowly defeating the incumbent republican governor blevin has declined to succeed. And in virginia democrats take control of the state legislate your it wasnt all bad news for the gop. They did win handily in mississippi. State reeves topped jim hood another top diplomat expected to testify today. The u. S. Embassador to the eu is now remembering the story differently. He amended the story to acknowledge a kwquid pro quo wi ukraine. 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Natures bounty, because youre better off healthy. Welcome back, shoes, dating and weight loss all in focus today. Adidas trading down despite better than expected revenue the Company Expects a pick up in sales as they expect to grow in europe next up match shares, that stock down nearly 15 . The owner of dating apps like match and tinder warn current quarters will come in below expectations and wait watchers. Shares of ww off also by 15 the number of subscribers did rise but growth slowed on the previous quarter coming up, soft bank taking a big hit on a number of startups like uber and wework if Oil Prices Stay low, we will see a huge round of bankruptcies and job loss wel lkboeet and lta aut it next. But in my mind im still 25. Thats why i take osteo biflex, to keep me moving the way i was made to. It nourishes and strengthens my joints for the long term. Osteo biflex now in triple strength plus magnesium. Danafarber Cancer Institute discovered the pdl1 pathway. Pdl1. They changed how the world fights cancer. Blocking the pdl1 protein, lets the immune system attack, attack, attack cancer. Pdl1 transformed, revolutionized, immunotherapy. Pdl1 saved my life. Saved my life. Saved my life. What we do here at danafaber, changes lives everywhere. Everywhere. Everywhere. Everywhere. Everywhere. Uber and wework not working and softbank taking a hard fall this morning is one of the dow 30 going to be gone walgreens looking at going private. Good news for twitter users. The company may be ready to change up one of its most annoying features. Wednesday, november 6, you are watching Worldwide Exchange here on cnbc happy to be back with you here is how your money and Global Markets are setting up the day. Futures are relatively flat. They are down three points it has been quite a run for the dow recently nine stocks are up 10 or more 14 stocks are at more than 20 on the year. 3 m, pfizer and walgreens are down in bonds, the 10year yield creaming up a little at 1. 84 . In asia, stocks finish mixed i want you to focus on japan the nikkei 225 has done well the nikkei up 9 one of the best performing markets in the world lets look at what is happening in europe. Lets get a check on some of this mornings headlines soft Bank Reporting a massive loss a company posting an operating loss of 6. 5 billion compared to the profit of roughly the same one year ago the 100 billion vision fund suffering the 9 billion loss. Soft bank forced to spend 10 billion after it scrapped its cofounder adam neumann xerox discussing buying out hp what makes this interesting is that hp is about four times bigger than xerox. Walgreens looking to go private. We could have to find a new stock to put in the benchmark index. We are joined on the phone with sue at morning star. Do you believe these headlines i think the speculation about walgreens is not as surprising it would require longer runways than the markets have room for it would reduce distraction of the scrutiny and reporting we noted it was one of three dow stocks down this year and ive got to imagine walgreens ceo and their board has grown frustrated to all their response in the last couple of years. Absolutely. They take pride in how well they are performing he obviously thinks it is very undervalued at this point less than the market value. It is less but it is rare. This is quite unusual the proposed transaction is very large. I think this remains unchanged walgreens has convenient locations. They are fostering a lot of Community Partnerships where they can get health care in one location and leverage that kind of hard to find that in the market looking at what could be a big story and a big buy out. Just the fact that it is out there is interesting moving on to another interesting story. Oil prices are down. But they have been down over the last couple of months. All of these companies saddled with debt. What about the Political Risk to the sector and those talking about ending fraking going to our guest listen, it is an industry facing a triple whammy. Youve got a Political Risk saying we need to shut down parts of the industry and we have this massive debt load that is like a bunch of rocks on a river. Is there any way to get through one, two or three of those things the thing to describe is how much counter intuitive there is behind it. What deregulation means. It is kind of a sell the commodity buy the scenario winner you have too much supply relative to the demand you look at the future and when you look at the world of the regulation, that could be bad for the commodity. The problem is navigating between those two polls. Living outside of your cash flow cape abilities is a lot harder there are heavy types of oil. Where the issue is you can buy oil from russia or texas and it is basically the same. It doesnt matter whether we cut back onraits now, i wonder if the damage has been done because the taps have opened up. It has opened up. Huge fines in gee anna it is true things are likely to slow down. There is still going to be oil coming out of the ground that question is where does it go demand and trade the reason there is overhang built into the market where big attacks can shut off and the price can still fall a week later, that is because of the demand fear. It is grounds for concern going into the first half of next year a few years ago, someone asked me why are you getting into the oil story it is a debt story how big is the debt threat we hear the same story. There is not enough financing around and overand over salvation comes through. It is not just a sweet spot that 50 to 55 a barrel isnt going to tie you offer what is the sweet spot that is a function of the ability to source financing on the debt side of their balance sheet. That looks more constrained than it has in a long time. 137 billion in debt among American Oil Companies are they going to be able to pay that back . Some will, some wont it all depends you are seeing rig counts fall is that the capital discipline or is that the after shock well see how tightly these companies can operate the average return of a stock operating in t operating there has been a loss in the path. Kevin, a real pleasure coming up, forget a smart watch. Could you soon monitor your health through ear buds. Impossible foods the plan to break into china what the company ceo is telling us about the meatless vision stick around sundown vitamins are all nongmo, made with naturally sourced colors and flavors and are gluten dairy free. Theyre all clean all the time. 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