Transcripts For CNBC Squawk Box 20240712 : vimarsana.com

CNBC Squawk Box July 12, 2024

Arrows dow futures indicated down by about 260. Weve seen down 300 this morning. Nasdaq also down sharply down by 200 points and the s p 500 down by about 37 so significant declines after two other days of losses also playing out in the treasury markets as well. If you want to take a look at what is happening there, yields have gone down, right now the ten year is yield iing below 0. a lot of this has to do with renewed lockdowns in europe. Lets get to karen cho who has more on what is happening there. Thank you very much we are witnessing losses across the markets as we contend with more news flow around more severe restrictions. Weve been hearing the last couple hour 24s that there may moves announced later on today, reports from various Media Outlets suggesting that london will move to a tier two restrictions the london mayor has spoken suggesting that the Health Secretary will reveal the changes in the house of commons. No mingling between households currently there is a rule of six people and they can be from various households but the mayor is talking about 100 cases per 100,000 people and well soon reach that level, but a significant numbareas alr above that level and this highlights some of the pressure applied from the Opposition Labor Party for a two Week National lockdown that has been resisted so far and the ultimate decision lies with Boris Johnson but we already have liverpool on the highest level of alert so pin oigs aubs oig and servins has been closed for the time being. And on the French Market, there havements there of overnight curfews at 9 00 p. M. To 6 00 a. M. And the French Market is responding to those restricti s restrictions bars and businesses have to shut at 9 00 p. M. Sharp the president wants to get the level back to 3,000. And just on germany, we have had record cases there as well but roughly just over 6600 that means that there are some restrictions on socalled hot spots, but it is much higher than what im just talking about with the uk and in france, gathering will be limited to just ten people. And gatherings in private spaces can only have two households so the german stock market was down the most earlier, more than 3 , limiting some of the damage. But what were witnessing is some of the worst selling weve seen since about the 21st of september. Back to you. When you say lock down i go on, there are different it ragtss in differeragt iterations here in the United States, it meant that theaters were closed, restaurants were closed, people couldnt go to work unless they were deemed emergency officials. You are not necessarily talking about that level of lockdown, are you . Well, the labor party has been suggesting that is required in london, the more severe restrictions, a National Lockdown is required to two weeks as a Circuit Breaker as we continue to see infections spiraling. But that is not what were talking about here because the government has been resisting such severe measures given that the uk economy was so hard hit by the severe lockdowns we had earlier in the year, an effort by the government to avoid those type of measures at this point so it does seem that what well see is just tighter restrictions still localized level, but of course london, the capital city, that has severe implications if there are restrictions no mingling of households. And it would coincide with half term as many schools are shut for a one or two week break. Karen, thank you very much. Red arrows across the board there in europe and that is bleeding over into the futures here in the United States. Andrew, good morning. Is it just me or for me, im still surprised when i hear, all right, were reclosing bars. It is like bars were open and you are wondering that is not i cant imagine you can go to a bar here. You have to be outside you have to be insane right, you have to be outside. I havent been to one, but ive seen other people when ive driven by. But part of the issue is that because of the lockdowns that they did pursue, you know, three, four months ago, they were actually able to put some of this to rest for a while. Clearly not enough but that is what allowed people to go he back to bars. Im not suggesting that that necessarily is the right move for us here. But it was partially because of the discipline that they had then that then allowed them to frankly become undisciplined now. This is the graphic representation of what you are saying right there this is this period that went through a lull, and seven be day rolling average of cases per million, and the point that the journal makes is that the eu, that metric, which is very important, the eu has now passed the United States on a rolling average on cases per Million People so weve done a little bit better since there, coming down here, but we almost met up there at a higher level. So were in the middle were in the middle of this. But just myself, i feel people around me, you know, there is apple straighter here and everyone there is a new espresso machine and if there is someone else on the elevator, i feel it. Ill take the next one it really is a weird feeling there are stairs. I come down the stairs sometimes. I let gravity gravity is my friend but in certain cases, it has not been my friend anyway, lets keep going meantime, lets talk about what is going on back here at home Steve Mnuchin speaking in washington, he says that he and House Speaker nancy pelosi remain what he is saying is, quote, far apart on another covid19 Economic Relief package, he says a deal would be hard to reach before the november 3 election. But he said that he would keep trying and as President Trump continues to champion his efforts in those negotiations we should tell you, the secretary is going to join us live at 8 30 a. M. Eastern time this morning it is a conversation that you do not want to miss where we will probe and ask him about all of this and the state of play and part of a selloff on any given day, we look for reasons but things dont seem to be going so great there well see. It will be great to have him on to ask him he made some kind of comment about that the democrats are not ready to give anybody a win between now and the election and well need to ask him about that because i dont think that he had said that up to this point because he was holding out hope. And he wasnt going to say that because obviously because that poisons the well exactly but he said it and everybody else, all these other senators have said that, but he has never said that along these lines. And he has now. United Airlines Reported a loss, 8. 16 a share. But we need to remember that wouldnt be bad, that would be pretty good. But it is per share unfortunately in the Third Quarter. Worse than the 7. 53 loss analysts had expected. Revenue roughly in line though well talk to scott kirby, he will join us in an exclusive interview at 8 40 a. M. Eastern meantime, elon musk announcing the second price change now for the model s in a tweet yesterday. He said that the gauntlet has been thrown down and says the prophecy will be fulfilled, model s price changes to 679d 69,420. A love of juvenile musehugh mory working the 420 into the Purchase Price this second cut coming after a start up led by a former tesla exec priced its sedan at 69,900. And you remember also the 420 price tag was also used for his efforts at one point to take the company private. Or not yeah, im usually int juvenile hugh more, but enough already. Anyway, shares of clouds Computing Service fastly are plunging this morning. The dough lcompany lowered its e because of Geopolitical Uncertainty. Tiktok accounts for about 20 of fastlys revenue you First Six Months of the year and that stock is down by 29 this morning. And i do have a question about this i know there was so much uncertainty surrounding tiktok, but you did it actually lower usage . There were threats to shut it down seems like maybe more people were downloading it. I dont understand it yet im open to being sold on how great it is, but so andrew, you have still not youve seen tiktok, but you havent produced a tiktok, is that still i have not produced any tiktoks. I thinks answer to beckys question, it did both. In many ways, more exposure for tiktok but at the same time, a lot of the big influencers and maybe this was going to happen anyway, a lot of the big you influencers set up shops independently on what is called now reels on instagram. So they are running both of their platforms oftentimes with the same content in both places. So to some degree instagram was a beneficiary of this whole back and forth. I get the instagram beings beneficiary. But were teens not using it because they were worry that the Trump Administration would shut it down . No, i think that those teenagers some of those teenagers ended up staying on tiktok but also setting up shop elsewhere at the same time and because of that, are now maybe using some of the instagram and Facebook Services this ways that they might not have otherwise. Id like to bomb ypoll you gn this we were talking about fastly and we had twilly on yesterday and an ipo recently of a Cloud Company. Ill having trouble picking my favorite Cloud Company dont forget ibm. And do you have a favorite . Can you distinguish between the Cloud Companies and do you have a favorite that is the best Cloud Company, andrew . Which one do you think really i dont there are so many it is easier to pick a nonCloud Company. By the end of it, well be a Cloud Company. Well be a nonlinear tv Network Living on peacock to some degree is a Cloud Company. Okay. That is my favorite then you came up with it right there. You just hit it. You did that for me, andrew, fantastic. Coming up, some new lockdowns in major european cities helping drive overseas markets lower well be monitoring it and u. S. Quequity futures are down still up near 30,000, so like 1 welcome back wells fargo firing more than 100 employees for allegedly defrauding a fell Pandemic Relief Program multiple reports now saying the bank determined that former staffers knowingly defrauded the Small Business administration by falsely applying for covid19 relieffunds for themselves and this is a story that doesnt help the reputation of wells fargo, which has been a reputati reputational mess sadly. And i think this is different. In the past it was bad employee behavior, but it was insend iz radioed and i ed and ignored by management but now i give kudos to the bank for finding those employees and getting rid of them. This is different from the did you have that they have gotten dinged for in the past when i read it, i was like who was doing the hiring at wells far go for a number of years . Like holy god. Whatthe hiring at well far go for a number of years like holy god. What was the f you could have skit about that almost a candidate comes in, what are you looking for . You will pretty sneaky, youre hired. Joe, im with you 100 of these people, it is one thing to give them credit for how many were doing the accounts i think i still have a couple no, im kitdding, i dont, but you know, having been a stockbroker, if you could open accounts, it was so hard because you had to make so many calls. If you can just open them in the phone book, hey, this guy looks good, he has an account. Huge problem no question. And they ignored it for years. Their system was set up to incentivize some of those things Corporate Culture might have been an issue. Lax for sure. Yeah worth pointing out by the way, and this may make beckys point to some degree, jpmorgan had not a problem in terms of this level, but there were people at jpmorgan that they ended up firing that were involved in fraud as well. But i think the level and extent of the number of people involved from the outside from what it appears on wells fargo seems so extreme, you have to think that there is some kind of cultural problem at play here those are fair points and does bring up questions. Lets talk about another story about School Undergraduate enrollment fell by 4 , dragged down by a 16 drop in first year students the biggest drop came in freshman enrollment in Community Colleges down by nearly 23 . The National Student Clearing House Research Center which compiled this data said strained Family Finances was probably the biggest factor enrollment in graduate programs actually increased by nearly 3 , probably people thought maybe staying in school was a better idea than getting out there and trying to find a job i dont know, college was so great. Remember last time really nothing is expecteded of you except studying, grades. And it is a great four years obviously. And i feel bad for people that are i used to think that it would be a semester. Now it looks like a year and i hope that is it. And even high school, you know, senior year, i feel bad for my son,s it is like hes at home,i is sad, you are missing out on some of that we didnt appreciate it as much back then and how great it really was. Now things are expected of us. Unfortunately, we never do in the moment that is the saddest part, right . Yeah, youth is wasted on the young, andrew, right anyway, this is interesting too. Alabama head football Coach Nick Saban in tand the schools Athletic Director now tested positive for covid19. Saban who is 68 said he didnt have any symptoms but he immediately isolated at home alabama is scheduled to host georgia on saturday. That is always a really big deal both teams are coming ve doing s year, so a big matchup. Wish them both well. Meantime, saturdays game between florida and lsu has been postponed after the gators had a surge of 21 positive tests this week they are scheduled to the builtin bye week that the ncaa now has, so the week of december 12th and a lot more coming up this morning including well talk about robert smith who reportedly settled a tax probe with the just tis department, about 1 140 million well talk about what landed him in hot water and in the next hour, well dig into the story that says that private warnings by white house advisers including larry kudlow helped hedge funds get ahead of the pandemic selloff in february and march. Stay restless with the icon that does the same, the rx crafted by lexus. Lease the 2020 rx350 for 409 a month for 36 months. Experience amazing at your lexus dealer. Lease the 2020 rx350 for 409 a month for 36 months. Keeping your oysters growing while keeping your business growing has you swamped. you need to hire i need indeed indeed you do. The moment you sponsor a job on indeed you get a shortlist of quality candidates from a resume data base so you can start hiring right away. Claim your seventyfivedollar credit when you post your first job at indeed. Com promo welcome back to squawk box. Sources tell us that the wealthiest africanamerican cou, reached a 140 million settle himself with the Justice Department over a tax probe. Robert frank has more. Good morning. Robert smith reportedly reaching a settlement with the Justice Department and the irs after a four year criminal tax probe this agreement would call for smith to pay 140 million in back taxes, fines and penalties. That would be among the largest settlements ever by an american taxpayer to settle an offshore tax investigation. Smith is expected to enter into a nonprosecution agreement admitting to liability for taxes owed and for not Filing Foreign bank account reports now, all of this stems from an offshore entity that was created with a 1 billion investment from houston billionaire Robert Brockman that was made as a seed investment in Vista Equity Partners in 2000 you now, at issue was whether smith paid taxes on 200 million in profits that he directed to this offshore entity and whether he failed to properly disclose that entity to tax officials smith who is worth more than 5 billion is reportedly cooperating with tax investigators which could lead to further announcements and charges at a press conference in San Francisco later today. And we should add that i reached out to both robert smith and vista and neither is commenting for now. Back to you. Robert, appreciate the report i was going to say, you know, ive been trying to dig into report this out just like you. And my understanding, this took place when he was in his 30s and because of the way the offshore tax structure, he was paying with the carry if you will that was drenktsdirected to him but t paying effectively the money sent to this offshore tax structure. The offshore tax strublgcture le on used that money as part of a charitable philanthropic payment which i think was efforted or not only the way to pay philanthropy, but also to escape the tax payment. My understanding is that as part of this settlement, he will accept and admit, i dont know if it is wrongdoing per se, but to acknowledge that the mistake was made the question i was going to ask is whether you think this has any inch pli indication k impli philanthropy or his business given that vista itself seems to be unrelated to it, though obviously connected given the original funds well see obvi

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