You are watching Worldwide Exchange on cnbc. Good morning to you, im dominic chu in for Brian Sullivan. Stock futures looking to extend gains after the 500point rally. Up beat developments on treatments and growing talk of stimulus on capitol hill s p higher three sessions in a row. The blue chips roughly 700 points shy near an 1800 point sell off the s p lost 180 points on thursday as well going worldwide with a mixed picture in asia. Just Getting Started plus big news out of one Investment Bank weighing job cuts. Julianna tatelbaum is in our london news room good morning good morning, dom it has been a choppy trading session. We opened flat and now we are seeing them come together after a very strong rally. The stoxx 600 ended 2. 9 higher. This morning, we have health care and industrials leading the charge travel and leisure and autos one getting attentions this morning that is hsbc the Investment Bank has revived the comment of job cuts and put on hold the plan to cut 35 jobs but said they are going to revive this plan driven by fallen profits and fairly grim forecast overall as the bank now plans to forge ahead with the cost cutting they had back in february thank you for that update on the european trade back home, there is growing concern over rising infection and hospitalization rates in reopened states across the country. Frank holland has more thats right. Arizona, florida, oklahoma and texas are reporting a rise in cases. Nevada reported the highest singleday tally up from a previous high on may 23. Hospitalizations are also rising or at record highs as the situation in china is also getting worse 70 of flights from beijing were canceled as the outbreak in the Chinese Capital is getting worse. Reporting cases with mack ou and apples head of diversity is launching a 100 million racial Inequality Initiative in the death of george floyd. According to Company Filings 67 of the work force were men down 3 from 2014 in the u. S. , 6 of tech employees were black unchanged from when it first started reporting those figures in 2014. Back to you. Back to the market, stocks were higher yesterday after better than expected retail numbers and a report of progress on a covid19 therapeutic drug jay powell told congress, more fiscal stimulus may be necessary as the u. S. Economy may only make a slow recovery from the covid19 pandemic. Our expectation generally and the expectation of other forecasters is that we will now see unemployment decline and employment increase. That is just a function of lifting the social distancing measures and shut down and moving large parts of the economy and resuming business. That should result in significant amount of job change and activity but it will leave us well short of where we were lets go to our guest, candice. Thank you for joining us did anything in there resonate with you about whether or not the markets can continue this up trend given the fact that we are seeing more action from the fed and potentially from the government on the fiscal side of things caller thanks for having me. I would say markets have been surprisingly resilient even in the wake of the number of risks out there. We are seeing the rise of covid cases and even geopolitical discussions. His testimony reinforces that we are not out of the woods yet the numbers have been encouraging as the economies reopen hes reinforcing that path to recovery is likely to be uneven and may see some damage. Equities might be a little too complacent on some of the risks. We wont know what the recovery will look like in the absence of the they are ppe therapeutic is that the sign of kplas an si and what does that mean what would set the markets lower if the fed seems to be the cure all for everything caller equity market gains have been driven by assertive gains. This is largely what has been able to see the markets continue that run higher even in spite of some of the risks out there. That unlikely support likely from what you are seeing earlier. Weve hit a point in the absence of visibility on the path to recovery whether the negative headlines civil unrest and the rise of covid19 cases that could restrain what goes on investor shopping lists in consolidation you may be forecasting for we saw sizeable pull back where this was an opportunity. With these valuations, from the speed and recovery in order to get that value oriented rally moving again and to be more sustainable, youll need a more durable expansion story that will depend on the they are therapeutic that could allow for that recovery. There could be a buy as of growth around the sectors and uncertain environment. Thank you for those thoughts. When we come back to the show, Worldwide Exchange exclusive conversation with jp morgans head of energy power and renewables Investment Banking. Plus what the ceo of mcdonalds is saying about his companys contribution to black america as reform and call to action continue to grow. And why cruise stocks are getting hammered againhi ts morning. A busy hour still ahead when Worldwide Exchange returns after this between ideas and inspiration, trauma and treatment. Gained a couple of more pounds. Thats good for the babies. Between the moments that make us who we are, and keeping them safe, private and secure, theres webex. Beautiful. Can i find an Investment Firm with a truly longterm view thats been through multiple market cycles for over 85 years . With capital group, i can. Talk to your financial professional or consultant for investment risks and information. Talk to your financial professional or consultant bbut what if you couldg do better than that . Like adapt. Discover. Deliver, in new ways, to new customers. What if you could come back stronger . Faster. Better. At comcast business, we want to help you not just bounce back, but bounce forward. And now, with one of our best offers ever, were committed to helping you do just that. Get a powerful and reliable internet and voice solution for only 29. 95 a month for three months. Call or go online today. Welcome back to Worldwide Exchange. This week jp morgan is hosting its own Renewable Power conference when Companies Like Chesapeake Company oil and gas diamond off shore are nearing or have entered into bankruptcy Brian Sullivan caught up with the head of jp morgan renewable Investment Banking it is a challenging time for a group of temperatures in the energy patch there is no question about it. These companies are trying to transition to a new day of increased efficiency and operating costs and what is a challenging environment. Do you think these companies could tap into the markets for now. I think the Strongest Companies have definitely shuttered the abilities the ones that are struggling may not be able to go forward. Do you think the energy space needs to go forward . You have 1. 5 million that dont have electricity the modern life requires electricity. Oil and Gas Companies are very focused on capital efficiency working towards a more sustainable, future while relying on affordable future. You think there will be an oil and gas industry in 15 years . You dont see investors giving it much of a longterm lifeline. You are correct investors have severely discounted the longer term effect and even as you go through a variety of those around the usage, i still think it will be reasonable high people shouldnt under estimate the ability of innovation, imagination of these companies around the sector. Companies have a way of making sure they sustain themselves ive joked saying why doesnt a big oil and gas company go out and buy a solar or renewable company. Do you think well see image tiff ideas like that in the future those clients are all coming together l g and other assets of oil and gas. Independents own, to a large extent providing energy and electricity in the need for modern life. So where do you see the opportunity . One is helping to finance people with the initiatives that could be solar, wind and battery storage. We are in the openings of this with things like l g which helps people transition from coal to gas. We see opportunities to advance clients as it put capital to work around the globe. Our thanks to those authorities. Still ahead, how one e Commerce Company is shaking up the industry and making it to the cnbc disrupter 50 list at spot number five. Coming up next announcer todays big number, 4. 6 trillion. Thats how much investors have stashed away in money market funds according to refinitiv the highest level on record going back to 1992 so im gonna hold on promoting you this quarter. Cool . Drop the taco. Get in the car. Does this sentra feel like a compromise to you . Wait, what. . The handling is good, right . No compromise there. Nope watch this. Umm. Bbrie. Brie brie rear automatic braking. So if this Nissan Sentra isnt gonna compromise, why should you . Youre right atta girl. The allnew Nissan Sentra. With more standard safety features than any other car in its class. With spray mopping to lock away debris and absorb wet messes, all in one disposable pad. Just vacuum, spray mop, and toss. The shark vacmop, a complete clean all in one pad. Welcome back groupon reporting a loss despite suffering a quote unquote major impact from the virus pandemic catering to what customers are comfortable doing now such as restaurants, take out and delivery and online exercising oracle beat forecast but revenues did miss as customers and hospitality ministries to their orders not giving projection but expects Revenue Growth to pick up shares off 3. 25 and norwegian cruise lines extending plans through september. Canceling some new england and canada cruises in october due to travel restrictions in certain ports. Norwegian, carnival and Royal Caribbean also lower cnbc eighth annual disrupter 50 released highlighting businesses disrupting market at a fast pace. This year, klarna, the highest value fintech firm makes its second appearance after previously making the cut in 2016 in the number eight spot. Joining me now, ceo of klarna and what exactly is going on what do you do and how business is going sure. Thank you for having me. It is a very exciting time for us in the u. S. Obviously whats happened in the u. S. , credit cards have not grown at all with younger millennials 17 of young people do not hold a credit card. They have debt cards they face issues like what if i buy this item and it is not what i wanted thats my salary money or what if i want to make a return and they hold my money for three weeks. We offer an alternative and pay installment. Paying 25 every week from their salary check with no interest. You are only use credit where appropriate for appropriate purchases. This is something weve seen grow massively with sephora, h m, adidas. It comes out to 20 . People love this even though it is very early beginnings similar to what we have seen in europe and now in the u. S. Just out of my own curiosity, take us through what the Business Model is. You are providing zero cost financing. How are you able to do it . Are you a bank we are a bank in europe in the u. S. , it works slightly differently the way it works, they see a list with over 8 million users from millions of customers they see a list of the cost of sales where they see a list in the cost for us. Thats how the Business Model works noting that this year, out of the 50 companies weve had, five of those are actually payment oriented are these trends you have seen lasting long term and that payments will change and evolve into the future. I think so. If you look at classic retail banking, it consists of three items. Payments and lending these products havent evolved much over the last couple of years. A new example. We do about a million transactions a day now with 85 million users. For every transaction, we not only have the amount you buy but the sku level details, that allows us to give a much richer customer experience. You see items of the items you bought from your purchase history. They want to buy new products and drive new customers to them and make additional purchases. There is an immense opportunity to innovate in the payment space, which has to some degree not been as big a focus for traditional banks. Thats why you are seeing the trend you are referring to im a agagenxer and used ven and those apps more recently than ever. Coming up, cnbc is out with a new states of play survey when it comes to reopening the economy. Results may surprise you that is coming up when we return after this break communities showing support in their own way. Our way is massmutual healthbridge, a free Life Insurance program just for healthcare workers fighting covid19. So to all the healthcare workers on the front lines, thank you. Bbut what if you couldg do better than that . Like adapt. Discover. Deliver, in new ways, to new customers. What if you could come back stronger . Faster. Better. At comcast business, we want to help you not just bounce back, but bounce forward. And now, with one of our best offers ever, were committed to helping you do just that. Get a powerful and reliable internet and voice solution for only 29. 95 a month for three months. Call or go online today. Stocks trying for four straight day of gains but still has a way to go. Day two for jay powell on capitol hill after dialing back expectations for the latest Bond Buying Program and the path forward for chicago as the city gets ready to reopen bars and breweries to the public we speak to the owner of the largest independent brewer coming up. Wednesday 2020 and you are watching Worldwide Exchange on cnbc welcome back to the show. We are kicking off the second half hour with stock futures pointing to a triple digit open for the dow. S p would open by about 18 points, the nasdaq by 69 and the dow up by 140 as well. Holding a record read for may retail sales growing talk of stimuluson capitol hill as well the dow and s p are higher for three sessions blue chips are 700points high after an 1,800point selloff green arrows in europe this morning as well real estate, health care and retail a defensive tilt but overall fairly mixed picture hsbc shares are trading slightly above the back line with the Major Overhaul to put the brakes on it. Theyll push ahead with the plans to cut 35,000 jobs. We are headed back to you live with the latest there. Check out what is happening with dow futures. Pointing to gains again. Last thursday, we lost 1,862 but it has been three Straight Days of gains since then. We are about 700 points shy. They did lose about 88 points this that selloff that is trying to climb back now as well. Gainers we are seeing in trade so far include jp morgan chase, nike shares up as well, cisco systems, intel, American Express giving a slight bump to what is happening. Also seeing some dow lagardes today. Merck is down, verizon boeing and johnson and johnson relatively flat there as well. We are seeing some movement to kind of make things move there as well. Something to keep an eye on for sure Federal Reserve chairman jay powell prepares for day two of the virtual testimony. Adding some color to the latest policy to buy up corporate bonds. I dont see us as wanting to run through the bond market like an el vant doing things and snufg out price signals like that we want to be there if things turn bad in the economy or go in a negative direction, we want to make sthur we are there with the actual market. Should we need it, we clearly dont need it now. Coming amid reports of a possible 1 trillion stimulus package being weighed by the Trump Administration along with possible return to work bonus checks to get Companies Back on track. Joining me now, cnbc contributor james pethokoukis. Is this a Federal Reserve that has basically backstopped the ee tire economy in the u. S. And globally as well caller not quite there has been a considerable amount of stimulus it has helped. The Unemployment Insurance has happened Small Business aid has really helped whenever these fed chairs go in front of congress, they tend to Tell Congress they will gently nudge them in the past, it is about getting the budget more balanced they do not want to backstop the entire economy they want to make sure we dont go to austerity too soon it is a clear message. An interesting dynamic bubbling up. Many of those who have been deficit hawks in the past have softened where we really do want to see more spending put in place is this the point now austeritiy would be weighed and does this do to the economy . The former obama chair and former push chair. The plans put forward were not about economy bouncing back. That is the time and double the employment and budget cutting and worry about the deficit. These are very strange programs that need to be recovering a lot maybe encouraging people not to go back to work. I have to think at the end of the day, the president would keep the economy rolling there is an election coming up in november. One of the things we heard jay powell get subjected to was debating with members of congress about trying to make a statement and what should be done in your mind, what should be done state and local health stimulus checks and getting the u. S. Economy back on track in the near term, it is easy to be caught up in the fact that well have a lot of jobs created and jobs report to think, all right, we have a plan Going Forward. We need to keep uninsurance Going Forward, the bonus chicago checks and state and local governments. Very important from the beginning was. I dont think you need to get fancy about payroll tax cuts right now. You get back to that from yesterday. Always great to get your thoughts coming up, the windy city is reopening bars today well speak to chicagos largest brewer on his path forward and some other top headlines the nations top infectishs diss expert says states including arizona, texas and florida could stop cases by identifying with the disease, isolating them and tracing their contacts the u. S. Open tennis will be held in august but tennis biggest stars will be forced to play without fans in the stands. And facebook will allow users to turn off seeing political ads. No word when that llwi start something to keep an eye on. We are back after this thats been through multiple market cycles for over 85 years . With capital group, i can. Talk to your financial professional or consultant for investment risks and information. Talk to your financial professional or consultant yeah, everything is runningis smoothly with the now platform. bling see, incident resolved. How did you. Gotta enjoy the small wins. You keep being you, derek. Keep being you. With spray mopping to lock away debris and absorb wet messes, all in one disposable pad. Just vacuum, spray mop, and toss. The shark vacmop, a complete clean all in one pad. Can i find an Investment Firm with a truly longterm view thats been through multiple market cycles for over 85 years . With capital group, i can. Talk to your financial professional or consultant for investment risks and information. Welcome back a new cnbc states of change research we are polling volters in battleground states. A majority of those believe the country is reopening too fast. We have more on that story good morning. We are starting to see an interesting partisan split also this geographic split which tells you the way americans are experiencing this virus differently. Six battleground states that are so important for President Trump as the fate of the election hangs in the balance the politic geographically now people saying we are reopening too quickly. Look at florida and aishz at 50 and 49 saying we are reopening too quickly. Pennsylvania and michigan where it is 21 and 16 saying we are reopening too quickly. That gives you the sense that people are experiencing this differently. The idea of wearing a face mask in public a republican and democrat split. 94 of democrats support that. 37 of republicans support it in the battleground states, 68 overall that support wearing a face mask in public. Battleground states test to support it little more than republicans do look at what is safe at this stage. This gives you a sense of how businesses are going to start to recover. As states begin the opening up process. 50 of people in these battleground states think it is safe to go to your office, go to a motel 48 . Dining in a restaurant, 40 , uber or lift, 34 and take a flight only 28 of people think it is safe at this point to take a flight that has impact on hotels. 28 of people think it is safe to take a flight and only 48 think it is safe to stay in a hotel. You dont see a lot of travel and leisure. Maybe Business Travel where people feel it is safe for their jobs that gives you a sense of a long way to go. Only 50 say it is safe to go to the office im not even in a battleground state my home state. I can see some of those results. I may not want to fly as much. I may have a little reservation about dining out i want to show the first graphic about the states and people who thought we were opening too quickly. Florida and arizona with 50 and 49 say that we are opening too quickly. Yes, it might be because of the new issues with a surge. Those are two states i would think possible retirement life older populations in florida and arizona. How much of that factors in to the fact that older folks may be more uneasy about the reopening process . Sure. We hear that is one of the factors at play there. And the idea you have a very big mix of factors that seems to not be most of the people there. Thank you for those speaking of in chicago, the city is continuing to pay its path forward entering phase three of the reopening process today opening bars and breweries to reopen and allowing employees to enjoy beverages on site while effectively observing social distancing joining me, the founder and owner of the brewery, the states independent craft brewer people think it is weird ive been up for a while now, maybe i could use a beer at this stage. What do you expect business to be like . Good morning. Thanks for having me at this point, the recent change was just to add bars and breweries to the group of restaurants that can open up with Outdoor Dining and patios only so this isonly outside or immediately opening up we want to take advantage of it we are not opening our spaces right now. We are keeping closed. We are doing some rehab. Our big location doesnt have any outside space. In connecticut, weve had almost a month of Outdoor Dining the places i have seen have been jammed there is a sense that americans what nt to get back to some sort of normal. Do you think that will play out across america and specifically to what is going to happen in chicago. Are people ready to get back to going out . I think it is going to be a lot more gradual in the big cities than elsewhere across the country. It is been amazingly quiet in our neighborhoods for how it usually is people have been reacting well to staying home and stay safe. At home, doing things right. When the weather is good, you are seeing people out taking walks. Our beaches have been full we are not going to expect a big rush of business we think it will take months to get back to where it used to be. We know a lot of people will seen changes to normal what kind of changes do you see sticking to get back to normal for us, it has been a focus on beer to go. People want to come visit. They used to want to take a tour well put a hold on brewery tours for a while. We are installing a storetype location right now a wide variety of cans be egg grab and go. We are thinking about having food to go at that location which weve never had before and of course sanitation thank you from revolution brewery. Advice from 2020 barons top advisors pointing to an open on wall street you can always watch or listen live othn e cnbc app we are back in just a moment between ideas and inspiration, trauma and treatment. Gained a couple of more pounds. Thats good for the babies. Between the moments that make us who we are, and keeping them safe, private and secure, theres webex. Beautiful. I know that every time that i suit up, there is a chance that thats the last time. 300 miles an hour, thats where i feel normal. I might be crazy but im not stupid. Having an annuity tells me that im protected. During turbulent times, consider protected Lifetime Income from an annuity as part of your retirement plan. This can help you cover your essential monthly expenses. Learn more at protectedincome. Org. Welcome back to the show, mcdonalds speaking diversity saying they are prioritizing the recruitment of a more diverse work force but there is still room for improvement 70 of the crew in our restaurant are diverse from a race standpoint. Weve been on this for 50 years to try to make sure that we have the right diversity and inclusion programs im proud to say we probably created more millionaires within the black community than any other corporation on the planet but there is still work to do. Back to the markets, futures are still off their highs. Trying to extend the win streak in four sessions chief investment officer, treasury partner and 2020 barons topranked as advisor. What should we be doing . Is this a market rally we should believe in based on the massive amount of stimulus buying applied by the fed and the quarantines. No core relation with the market investment really through the whole year and yet investments with the fresh cash right now should be cautious in adding these levels. You would still be putting money to work. Just not taking a fullblown shot at these levels do you expect this to happen in this type of market, valuations and earnings focus on this market right now. You look back to 2000, 2001, there is a lot of effort here. It is an expensive market. Yet will continue. Is it an allocation issue in the sector to be involved in and still waiting on the covid19 vaccine and how do you navigate those questions . Challenging really from the perspective that the investor from the multiple asset classes. Theyll have roughly 20 to 30 in fixed incox equities and hedged or protected investments. The fixed income portion now Going Forward. One of the primary investments used to having the income on the fixed income side are retired people and how are they going to generate that income sources are being demin fished that will be a burden on income receiving investors Going Forward as a result of the fed policy keeping rates down to zero that does it for us squawk box picks up market coverage markets are deteriorating and moving to the down side so far well pick things up next. The shark vacmop, a complete clean all in one pad. There are times when our need to connect really matters. To keep customers and employees in the know. To keep business moving. Comcast business is prepared for times like these. Powered by the nations largest gigspeed network. To help give you the speed, reliability, and security you need. Tools to manage your business from any device, anywhere. And a team of experts here for you 24 7. Weve always believed in the power of working together. Thats why, when every connection counts. You can count on us. Good morning futures pointing to the moderate gains in the session and turn around u. S. States report record spikes the governor in texas says young people in bars are partly to blame for the increase in his states new updates from companies on the impact of the pandemic how a cruise operator, airline and retailer are adjusting their policies it is wednesday, june 17, 2020. Good morning welcome to squawk box on cnbc. Im becky quick along with joe kernen and andrew ross sorkin. The dow rose more than 500 points yesterday after better than expected retail sells numbers. Up 17. 7 , the highest number ever reported. Then the report of the progress on the covid19 drug, dexamethasone. The drug wellknown but being used in this way and found to be fairly effective in reducing
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