Transcripts For CNBC Squawk Box 20240713 : vimarsana.com

CNBC Squawk Box July 13, 2024

Room to run. As a result, youve also seen pressure on treasury yields. Take a look at see what is happening with the treasury market some pressure on treasury prices the 10year sitting almost at 1. 891 yields, we watch them kind of skyrocket last friday after that jobs report was stronger than expected they came back down after they made it sound like the fed will not be moving anytime soon with this additional news making this happen. Going with every trade nuance up or down goes down, if it looks like the yields go down, if it looks like there is not a deal. We recover globally from the trade war. The two things of the fed and the economy. If the fed is on hold, the rates dont go up. If the economy are off to the races again. It is a thankless job people at home they see the screen from far away they zoom in, and take it for granted. They think we are just changing the appiture there is a guy. Hes running. He went running by, which startled me for a second, it was worth it, kyle you are going to do it again, arent you kyle, we are going to get you to the big trade story of the morning. President trump has agreed to a limited trade agreement that would roll back existing tariffs on chinese goods in exchange, china will reportedly boost purchases of u. S. Farm goods and obtain other concessions also obtaining a snap back provision. Well get to eunice yoon now in beijing with reaction on all of this good morning good morning, andrew. What is interesting is there hasnt been much reaction at all. The official state media hasnt said anything. Commenting only saying a deal needed to be mutually beneficial i spoke to one government source who is course to the trade talks saying there is just some hesitation on the leadership because of the concern about hard targets for ago occg servis that could hem in the chinese and force them into a situation where they would be in conflict with other trading partners and who would see this as a reallocation of purchases and potentially lead beijing to more challenges of the wto. Secondly, there is a concern that President Trump because of the u. S. Politics in the campaign would eventually reimpose tariffs on china anyway and that china could then be stuck with large purchases or contracts for these purchases of American Products but also get hit with these tariffs those are some of the main concerns people have and one of the reasons why at this point, the officials here arent quite sure of the best course of action however, it was also pointed out to me many times in conversation today that at the end of the day, the communist party does derive legitimacy from the communist party. There is believe there are economic reasons why president xi jinping would sign off on this phase one trade deal because of the understanding it could lift the stock markets and uncertainty about the economy here you are going to use the soybeans and the pigs. The famous other issues. I dont know what that means i dont it means there would be no other ip issues and other issues for phase two, phase three and phase four this is just buying some stuff which makes me think it seems like taking off the tariffs would be a pretty good deal for china. The navarro stuff, lighthizer, and steve bannon, this shows you how are we ever going to get that other stuff if they are even backtracking on buying the stuff from the other people. It is tough. It has been raised that china has been concerned it wouldnt be in compliance with wto regulations if it agreed to this right thats exactly what theyve been saying this one source in the government told me that there is concern that they would be not client with the regulations. They dont care about the other things thats what folks in washington would say but in china, especially within the government, they believe that they are client with wto regulations and that they dont do anything wrong. Joe had mentioned that the forced Technology Transfers, that has not been acknowledged that that is something that china does, there is discussion of protection of ipr in this agreement. It is not some of the heavy lifting and difficult discussions over a forced Technology Transfer but instead more pledges to protect Property Rights in terms of the faphase two or phase three, im sure you are finding this as well im hard pressed here to find that this phase two or phase three is going to happen beijing would be happy about a tariff roll back as you were talking about. They would be happy about having that delay if both sides need to save face, i think president xi looks fine here. President trump can sell it too. If you really looked at who is getting what they want, at least china is getting more tariffs coming off the ag products i think he could sell that it is seen as very delicate, joe. That is your that would be your perspective that president xi seems like hes getting a good deal. What people here are worried about with the government is that it wont be perceived well in china they are seeing this phase one deal as a symbol of the relationship between the u. S. And china going back on track. There have been several people who said to me, what if the u. S. And not only President Trump attacks china and Congress Jumps in what if there are more bills about human rights on hong kong than to china and the chinese public it could look as though leadership could agree to something that wasnt very good. Stuck with these large purchases. They are getting tariffs reimposed on them. And they are getting hit why not cancel all of these ill call my service and tell them get president xi on the phone. I dont understand. Why wouldnt they think the purchas purchases could be canceled . Why dont they take it. I think they will. I kind of think they are getting a pretty good deal and they should take it i dont think we get much. I dont think we do on the purchases, one thing i heard was that the way that purchase would have to be made is that the government cant just buy all of these ag goods the government would have to state the companies to do it it doesnt reflectwell on beijing that after all this talk about market it would be perceived. And china is worried about directing companies. They told companies they cant buy u. S. Product they want them to no longer be buying u. S. Technology from software to the computers they are working on there was another interesting point that ive discovered in this that is that another concern is that if these the pricing there is a feeling that the pricing on these isnt so competitive. Ifs that the case, the government would be directin the state firms to make these purchases. That the state firms would be forced to buy at a higher price. Wed likely ask the government for subsidies and then the government would be hit by washington for offering subsidies to these companies there is a lot of nuance and headache that they have to consider when making this decision i dont envy any negotiators in the room on this. I dont know what i would do my head would explode at some point. You are right in china, people have been comparing the pictures of the vice premier pretrade talks and now today. They are like, look at his hair. He looks like hes aged. I dont envy any of them. Eunice, thank you for that. Our next guest has been waiting patiently and watching all of this conversation play out china Books International ceo. You were sort of making faces as eunice was speaking. He does that a lot. I hear that face trying to say. The face is trying to say that weve known there would be a baby trade deal. Weve been saying that for months this is a head scratcher this is not anymore than an agg purchase bill. Is it possible is it a 2020 number . They cant do these numbers. The deal itself, does it really have a foundation. They dont really have a text. They dont want to make it public this is just a very, not a done deal yet do you think china is doing this as you would say, the bar is so low. Exactly right why not do this . They are buying stuff they want to buy they wont have to publicize what they are doing. If they dont like what President Trump is doing you think internally you could turn this off. You think eunice is suggesting maybe they couldnt. Eunice is right the issue that eunice brings up which is a good one. They are trying to talk about all of this nonsense it hurts their narrative to be talking about the state being directed to do this and the government directed to do that it will hurt their trade relationships elsewhere. There are issues as to why this isnt easy, easy it is worth getting done just looking at what is going to happen with this. When this deal is done, china will say theyve won, President Trump will tweet at that this is the greatest deal done with china. How are we to assess that and figure out this deal or not. A lot of this is left out. How do we have any form of measurement . The president promised a trade deal that would be big and robust and going after this as a purchases deal you dont even know if they are going to do the purchases. They dont have a legal text right now. The problem is is that you have a deal right now, if President Trump is being assailed as having given up too easy and 2020 comes in. And the candidate is trying to be stronger on china, we may not see a phase one deal stick this could be pulled back to the 2020 election. The idea that the punt will happen the idea that we have a detant before the election. Meaning the tariffs would come back . A lot of people in trumps year that dont want to deal the election and how this kind of deal would be used or not within the political process in the United States exactly this is not a deal that appeared out of nowhere this is the same basic deal on the table for months the u. S. Didnt like it. They were not even of one mind. Is the smarter political play to say, we are not going to impose new deals but we are not rolling back the old ones. The part of the slow down that comes here. If he rolls off the tariffs and they drop the purchases and dont follow through. Then they go right back on. And impact the market and economy. All the people that have been belly aching about how the tariffs are causing no Capital Spending the uncertainty of the trade picture is what is causing the lack of cap x spending thats not going away. I read something that said the market hates uncertainty this removes some uncertainty. December 15, we are not going up we are pulling back some other ones the chinese have something that they are holding over you if they dont go ahead with the purchases, you put the tariffs back on. The question is is it even a good deal. We had kevin brady on yesterday sayings it going to be great we have all these issues taking that up. They may have the lowhanging fruit there putting everybody through 18 months or more of this there is never going it be a phase one. The question is if there will be a phase two. There will be no phase two, the big question is in six months, will there be a phase one . Good to see you i imagine we may be talking to you on monday as well. When we come back, the other big breaks news story overnight, Boris Johnsons victory in the uk well tell you what it means for brexit and how investors are reacting to this announcer todays big number 266 million thats how much taylor swifts reputation stadium tour okto in last year, making it the highest u. S. Grossing tour in history. [ electrical buzzing ] [ dramatic music ] ahhhh ahhhh elliott. You came back welcome back some breaks news overseas. Boris johnson securing victory at a victory celebration, johnson vowed to leave the eu by january 31st saying no ifs, no buts, no maybes. The Prime Minister is expected to give a speech later this morning. Well monitor that and bring you updates as they happen biggest win since 1987. Since Margaret Thatcher more than 70 mps it is not happening in a vacuum either. You just look at the map in the uk, there is london and it is the reverse there. The labor was red then all the out lying areas were blue. Reading something saying if they felt the corbyn win was inevitable and that the people in the country now need to rethink the inevitable it is very bad for them. The sanders, warren party needs to see brexit happened and brexit vote right into the election ftse is up. Pound is up. Also like when President Trump was going to be elected, the world was going to end the brexit, the same thing the bigger thing is what happens to the uk. Scotland had an overwhelming divisive vote saying they would like to see a vote for sustain session. Similar for the northern ireland. Brexit is happening the question is about the United Kingdom after that trump and bojo, both with the hair signing the by lateral trade deal that will happen i saw people saying, except for what is happening this morning at 10 00 a. M. , friday the 13th, trump has had a crazy week the usmca. The china trade deal the impeachment hearings. People would argue those have been good. Look, he won brexit, got Boris Johnson, usmca, china, everything for the defense bill, the budget lets call a spade a spade. He has not gotten china. It is a delay of the december 15th trade talk. Its something he said he did. It is something he still has to do. You make up this propaganda. Okay. Is that propaganda when every newspaper has it it is been a good week, face it. U. S. Agrees to limited china trade deal it got done. Boris johnson winning you think is a trump win i think it is he was backing Boris Johnson saying he hopes he wins. It is not happening in a vacuum. It is a defeat for globalists and ee littists. If you thought they could lose best out of three, it is not going to happen. The china deal, we still have to wait with what happens this week if beijing tries to return again, im not sure trump will go along with it if you are worried about sunday, what is the 15th worried about sunday good week. An ipo Success Story her company has thrived where others struggle. That is next turning on 54 or something still ahead on the big trade news, the potential phase one deal with china. U. S. Equity futures up to 111 points squawk box will be right back. For every family going home for the holidays, there are countless people working to help them get there. Thank you to everyone we rely on to get us home to the ones we love. Yes im stuck in the middle with you, no one likes to feel stuck, boxed in, or held back. Especially by Something Like your cloud. Its a problem. But the ibm cloud is different. Its open and flexible enough to manage all your apps and data securely, anywhere, across all your clouds. So it can help take on anything from rebooking flights on the fly, to restocking shelves on demand, without getting in your way. As we wind down 2019, we are talking stock of some of the big unicorn debuts this year some companies struggle. Smile direct is down 55 others have thrived. Biotech has been a bright spot one of the brighter is turning point therapeutics up 200 . If you do the math, that means it has tripped joining us now, dr. Athena, ceo of turning point therapeutics. 18 raised 160 some million with market cap of 500 million. Now almost 2 billion. A successful year for you. Good morning to you it is our pleasure to be here. Yes so better than im just wondering, when the ipo priced, since then, have there been clinical validations of some of the drugs or is it just Market Sentiment . Absolutely, you acknowledged there were many ipos done this year including biotech that have not succeeded. We were very mindful something you talk about all the time in terms of that last round of financing that brought a good deal we were very much focused on asset Market Performance we initially started with one clinical asset weve progressed to three. This is all based on our platform of inhibitors of cancer it is precision oncology. You are looking at the precision there. What does that refer to, the reaction of inhibitors you are developing or are you focusing on very specific cancers they may not be rare or does it apply to a much larger Patient Population than just some rare cancers. Our platform is focused on noncancers when you think about precision medicine, it is targeting some population of lung cancer, colon and other cancers. Or al drugs that have been well reaccept tiff. You said nonsmall cell cancers. Thats correct. Do we know the genetic profile of people who respond . We do one of the ways our story different ated that story tackled resistance. As a patient has been treated, that therapy has failed them and they are looking for another option our or al drug has been changed to profiling of tumors which is now the standing practice. So the tumor mu tates around the initial treatment and you use Something Different after that maybe it should have gone alongside it after it mutated around it . Thats a very good point. One of the things is our lead asset. Our ipo had clinical data. Many ipos have strong science but they dont have clinical validation we had that. Our lead is a best in class asset that could be used first it should not be held for a patient already has the therapy failing them youve got comments and opinions on whether we should cap the drug prices and which drug plan, whether pelosi and others we dont want to hurt innovation there is a big potential in a lot of these companies and the drugs they are developing. First off, i was happy to see the new fda commissioner is an oncologist we do not have commercial drugs yet. It is a space we are monitoring. Some would say it would stief innovation if the current bill goes through my perspective is bigger than that i read an article that under 10 million americans, if you diagnosed with cancer over the age of 50, the likelihood of you disoffing your life savings within two years of your diagnosis is over 40 . That is a terrible stat tisic. Not just that, it is Rare Diseases too you need to find ways to push funding to get into these otherwise you are not going to find any sort of care. You get better and better at these but it is not cheap. If everybody lives to 95, and i hope we do actually 95. 105 would be better tofor me thank you, doctor. Thank you for having us this morning. Coming up, when we return, uk Prime Minister Boris Johns

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