Cfo about why all the m a is going on and how billionsof dollars vanished in hollywood as the screening giant shuts down completely it is thursday, october 22, and this is Worldwide Exchange. I think video killed the video star, answer that the anyway, welcome from wherever in the world you may be watching. Thank you for joining us well get to that squibby story in a few minutes but right now here is how the Global Markets are setting up their day. Stock market, well call them done to maybe flat nasdaq a little bit in the green, all this after stocks closed down yesterday, dow slipping 100 Investors Holding out hope for a stimulus deal and also starting to worry more about the election more on that in a few minutes. Major indexes all on pace to snap their multiweek win streaks. Nasdaq down slightly more. And today well get jobless claims number out at 8 30 as they always are on a thursday. For the first Time Applications may be coming in at 875,000 like they did in the latest week. Last weeks report showing the highest level of claims since late august. And one stock that you will hear a lot about today, and that is tesla. The company reporting its fifth consecutive quarter of profits with its Third Quarter results yesterday. The company topping eps and revenue forecasts. The stock up 5 . Well dive into more of the tesla results a bit later on the stock at 445 and change right now. Lets go around the world. Shares in asia closing mostly lower after the International Monetary fund down graded its growth forecast for the region the hang seng able to eek out a fractional gain. And looking at early trade in europe, not down too much, ftse 100 down 0. 3 . Right now lets get to the news that is moving markets as of late and that is the fight over another round of taxpayer funded relief as now nancy pelosi suggests a deal may not happen before the election. Seema mody is here with more on that and some of your other top stories. Good morning. Lets start in washington where nancy pelosi and treasury secretary Steve Mnuchin are set to resume talks later today. Pelosis office saying that they are closer to being able to write a bill, but the speaker says more work needs to be done. Speaking with msnbc, she said while she is hopeful about a deal, an agreement may not happen until after election day. Those comments came after the unsuccessful effort yesterday to pass a narrow 5 bill China Securities regulators have Given Ant Group the dual listing for its ipo, and the company saying that it will split its stock you issuance equally across both locations issuing about 1. 6 billion shares in each pricing is set to be released within the next week and finally, quibi is shutting down, the move is after it launched back in april and faced a number of problems including lower than expected viewer ship. The companys founder and ceo will have more on this decision on squawk alley. What was your favorite show i didnt have a favorite. I think the lack that thof breako content was one of the issues. So well learn more. Yeah, and some saying that whitman was an odd choice to run a streaming service. Cant wait to see the interview. And now to the breaking news surrounding securityoff t over election iran and russia trying to influence voters with iran apparently sending out emails to likely vote toers try to incite them into social unrest and sway them away from President Trump. Tracie potts is joining us with more heck of a story. Reporter well, it really is. And overnight the white house issued a statement taking credit for thwarting this saying that the president had told intelligence officials and Law Enforcement to be on the lookout for it but listen to the details, it is not clear at all that this attempt to influence our election has been stopped. Good evening reporter intelligence chiefs brief congress on the new development that iran and russia obtained o obtained voter information and urged florida voters to vote republican we will not toll late foreign sbchbs in o interference in our election reporter and iran denied the ae allegations calling them absurd. Nancy pelosi called them disturbing if people dont believe the elections are fair, that is the beginning of the end of this democracy. Reporter separately, a Cybersecurity Firm says hack hes are selling public Voter Registration data for 1186 million americans. Iran doesnt want to let me win. China doesnt want to let me win. Reporter President Trump previewing tonights attack on joe biden. If biden wins, china will own the united states. Reporter the New York Times reports President Trump had a secret chinese bank account. Can you imagine if i had had a secret chinese bank account when i was running for reelection . You think fox news might have been a little concerned about that they would have called me beijing barry. Reporter president obama hitting the campaign trail for joe biden in pennsylvania and again this weekend in florida. And florida is also where the president is headed after tonights debate which is definitely one to watch. Yes, it certainly will be tracie potts, big story there. Thank you very much. Now to the markets and your money ahead of that vote and whatever happens november 3, your next guest says there are still Great Companies worth your hard earned dollars. Lets talk more about that with dr. Joanne feeney from advisers capital. Good to have you on again. How closely from an investment perspective are you watching the election and how much whatever the multiple variations of the outcomes are will it if at all change your strategy good morning, brian good to be with you. Obviously the election is one of several risks that were facing here towards the end of the year it probably isnt the biggest one. I think covid is still probably the biggest risk and also the unpredictability of the stimulus but the election right now, the polls are telling us that biden is very likely to win. The polls also suggest that there is better than a 50 50 chance that the senate will turn toward the democratic party. So that is a risk that we search factor in. But really when you think about how to position for the long term, right, when we look at the data, the party of the president actually doesnt affect the Economic Growth very much at all. And so really you have to invest around that election risk. But it does give you an understanding of why near term risks are much larger than long term risks right now the biggest things to worry about obviously from the election perspective of a democratic sweep is that people will then anticipate higher taxes. Not just the Corporate Income tax which would probably be a modest increase, but it is that Capital Gains tax which could potentially trigger investors to sell off some of the stocks that have risen the most. So that is why we want to avoid some of the more expensive stocks and find ways to gain exposure for our clients to individual stocks that are much cheaper that have been somewhat overlooked but still have the strong secular xwlogrowth tail d and one of those is an under the radar amazon play Zebra Technologies right we started talking about this last time and we ran out of time think about amazon as the great white shark and zebra as the little fish that clings to the great white and gets to enjoy the remains, the leftovers of whatever the great white eats. So zebra makes the hand held bar code readers so the bigger amazon gets, the more zebra gets to grow. So that is why it is sort of an indirect way of playing the whole move online. But they are also involved in supplying hospitals with the technology to track patients and for even in sports to track sports players and their movements on the field so they can get big data involved in doing analytics on how best to run plays and to find new players so they are a company that has become diversified away from amazon which is a good thing, but another example of where you can find secular growth. And t to that end, zebra is a little less well known. Not one of the cheapest stock, but trading around the market whereas amazon is trading 60, 70 times next years earnings so there is a value approach that we take for our clientses and we do get to buy them individual stocks, but then we also want to find income and zebra doesnt provide that take a look at a qualcomm and broadcomm, you still have the tail wind, you get to play secular growth for clients and you get to get income. And right now, i dont know if inco income well, income investors realize this income is still in a bear market dividend stocks are still down over 25 year to date. So there is a lot of room there for clients to find tail winds for appreciation while they are getting some income. And very quickly, talk to us about stone co, Cayman Islands based, most of their business in brazil, kind of a midsized fintech company. Yeah, we really like fintech. You look at the banks, they are part of the income stocks that arent doing well yet. What we might call smart cyclicals eventually but the finteches are part of the secular growth story and Stone Company is a great example, it serves brazil and other south American Companies enabling them to move from Cash Payments to Digital Payments and they are one of the leaders there and this whole industry is relatively new in brazil, this transition from cash to digital followed from deregulation in brazil so even though brazil is still suffering like we a big challenge with covid, they are going to digital and Stone Company is helping they will there. And you have to look past it as well. Love the new names stone co and zebra as well well see you again soon have a great day and when we come back, tesla up, tacos down the stock stories that youve got to know about this morning plus mcafee making a return to the markets, rest eslie pickr will break it down and a piece of trivia about voters that you have to go back nearly 90 years to match dow futures off 50 5g just got real. Iphone 12 and iphone 12 pro are here on verizon 5g with the coverage of 5g nationwide, and, in more and more cities, the performance of 5g ultra wideband. Get iphone 12 on us when you switch. Only on verizon. Burritos bowls to go, fixing your overby the aite. Just some of the themes of what to watch today a lot of great themes here to break out. Lets take a look at chipotle reporting its largest ever quarterly sales. Online orders helping to offset lost restaurant traffic, Digital Transactions tripling and accounted for nearly half the companys revenue, but that shift has created costs such as delivery fees that is weighing on profits shares are lower by around 4 but still up about 60 this year lets talk about peloton shares are falling this morning, Goldman Sachs downgrading the stock to neutral saying while still optimistic long term, he thinks investors should steer clear of the richly valued stock over the next few months shares verse have run up 318 this year. And align technologies soaring, the maker of invisalign braces jumping 23 and it reached a milestone of 9 million patients. The ceo citing the new teen and mom consumer focused campaign which features social Media Influencers on tiktok and social media. How about that, brian. Yeah, kind of cool i guess. Id still rather have a taco seema mody, thank you, please send some tacos. On deck, our conversation with chevrons cfo about why there are so many oil mergers. I asked to do they want to make a bid to buy eonxx that answer when wex returns after this ng. Setting the course. But new ways of working demand a new type of network. One thats more than just fast. You need flexibility to work from anywhere. And manage from everywhere. Advanced technology. With serious security. And reliable coverage, nationwide. Forwardthinking enterprises, deserve forwardthinking solutions. And thats what we deliver. So bounce forward, with comcast business. United states cant easily get to a doctor or afford the treatment they need. Thats why goodrx has built a leading consumerfocused Digital Healthcare platform. We wanted to make shopping for healthcare as easy as it is to shop for travel or electronics. As a public company, we hope to provide even more services that help people get the healthcare they need at a price they can afford. Welcome back from Connie Company to parsley, nearly a deal a day in energy. But the one thing that really kicked things off is chevron and its buy of noble energy this summer and we had a chance to speak to one of the executives overseeing that deal, chevrons cfo, and i asked why he thinks were seeing so many deals in oil right now and how important is Balance Sheet management for the oil and gas industry it is really important. There were too Many Companies in our sector trying to grow too fast with too weak of Balance Sheets and by consolidating, well end up with stronger financial players with management teams that will have more capital discipline, have lower gna and will be able to return cash to shareholders which is important for the sector so we feel like we led the way, in fact we closed our transaction two weeks ago, others are announcing it now, but i think it is good for the industry dunk there will be more deals . I do. I cant speculate, but there is still a lot of players out there and more consolidation makes sense to me. Should our viewers and investors sort of read this as the growth is probably over, we should anticipate, you know, these kinds of oil prices 40 to 50, 35 bucks, whatever, for a long time . Is that how we look at it . I wouldnt look at it that way. It is still a very difficult macro. We have recovered from the lows of the Second Quarter and stabilized, but were still below a prepandemic level what i would view it though as, this is an industry that is out of favor with investors. We hear that on your network often. And in part because we have not earned appropriate returns on invested capital, we have not earned our cost to capital so the only way to earn above cost to capital is to be more disciplined with capital we think our ceo has led this way and were seeing others. So id focus on higher returns, less focus on growth and that is part of the equation of attracting investors back to the sector you made a play and you didnt get it, and at this point you are probably thankful. You dont need to comment on other deals, but do you think that the level of debt across the entire industry is in any way sustainable . Well, we walked away from anna darco and took our billion dollars because we wanted for show capital discipline. And youre right, in a different macro environment, but the same message, it still wasnt a sector that was not earning its cost to capital. So we are very focused on capital discipline in everything we do. It is what we are to do to generate higher returns, so were very selective in the projects we invest in. And whether that is in our conventional business or through acquisition. And ill ask you a question and no one else is listening, are you going to make a bid on exxon in. I wont speculate on that we respect our worthy rival. We compete with them and they are a Great Company and we think that were a very good company too. And what is amazing about the noble deal, a lot of people dont realize, even is looking at the Permian Basin you looked, took your billion dollars, and you are looking at the eastern mediterranean. Nobles play is really sort of egypt and israel and cypress not a lot of people talk about it how big is that potential opportunity . Well, that is certainly one of the assets that really attracted us to noble. It is a great resource, it is fully developed and constructed. So now it is generating Free Cash Flow and there are Growth Opportunities off of it, but we also like their position in the basin. They have other assets that we lisk and of course we have great syner synergy. So this is accretive to earning and to degree cash flow and accretive to returns and as understand, investors have let this industry go because oil prices have been vol volatile, but others are trying to convert their story to more is y sustainability how does chevron, an oil and gas company with gasoline stations, what do you have to do to make this sustainability story vie able and how do you sell investors in that. It is key to the stock we share a lot in commonvieal investors in that. It is key to the stock we share a lot in common, and we believe the future is lower carbon, but our approach is different from some others were not divesting away and diversifying away from our core business to go into a business that frankly we dont have competitive advantage in so our approach is how do we make our business, which is a good business, which the world will need for a long, long time, which has enabled great human progress, how do we make that business more sustainable in a lower carbon future. So our actions are around lowering the Carbon Intensity of our business, increasing renewables in support of our business and trying to make the franchise, that core conventional oil and gas business more sustainable in a lower carbon future. Thanks to Pierre Breber and it was a timely talk because it comes with it new reports that fellow Oil Giant Exxonmobil is letting employees know that possible layoffs are coming. The ceo writing an email obtained by bloomberg basically saying that were in tough times and unfortunately, it is going to result in a number of our fellow workers bein