Warren buffett and Berkshire Hathaway in a big way. And later in the show, a live stream update on the musk and zuckerberg cage match. It is monday, august 7th you are watching Worldwide Exchange here on cnbc good morning welcome to Worldwide Exchange. Im frank holland. Lets get you ready for the day. We kick it off with the u. S. Stock futures. Green across the board nasdaq doing the best up. 30 . At this hour, the dow would open up 70 points higher. This is after the poor showing last week with the s p and nasdaq coming off four Straight Days of losses and the worst week since march 10th. You see the nasdaq down 3 s p almost by 2. 5 it was rough for the tech sector the sector coming off three Straight Days of losses. The sharp decline down 1. 5 . Excuse me. 4. 25 . The fitch downgrade is playing a factor it was dragged down by apple which had its worst week since 2023 we had a very busy week for fixed income and new longterm issuance yields here with the 10year treasury at 4. 09 yields back above 4 since that fitch downgrade. We have seen downside moves with the lower end of the curve 30year treasury is down five points we are looking at energy wti is 82. 25. Down in the premarket a similar story for brent crude at 85. 75. Natural gas is catching a bid up 1. 5 now lets check on the top corporate stories with Silvana Henao. S silvana. Thank you, frank. Warren buffett showing an increase with Cash Holdings jumping to nearly 150 billion due to underwriting and investment income. The company reporting a 26 billion gain from investment and stock like apple with berkshire betting on 180 billion. U. S. Trucking giant yellow filing for bankruptcy over the weekend. More than 100,000 creditors. The move marks the end of a 100year old company with failed contract negotiations with union workers. And Federal Reserve governor Michelle Bowman making the case for more rate hikes. Bowman supports the recent hike and expects that additional increases will be needed bo bowman added Monetary Policy is not on a preset course and data will drive future decisions. Frank. Thank you, silvana. We will talk more about Michelle Bowman coming up thank you. Markets gearing up with 80 of s p earnings out as investors look at fresh inflation data on thursday cpi is one of the things expected to be top of mind as wall street faces a wall of worry with the impact from fitchs downgrade of the u. S. Credit rating and stretched stock valuations and reports from apple and other Chip Companies with the deflation risk in the economy. We have the latest from our economist here from hermes the long wall of worry the fitch downgrade. Which do you expect to have the biggest impact on wall street today and this week . It is yields. Treasury yields. I dont think it is about fitch. I think what you saw with the bank of japan and loosening of the yield curve controls is pushing rates up more than the downgrade. When you think of the 4. 25 level on the 10year treasury, we havent broken that. Everybody thought we would be lower. I think that is something that could spook markets. We would be buyers. You are adding to the wall of worry. You are seeaying it is yields we saw the long end of the curve go down a bit after the fitch d downgrade. It had meaningful impacts on the bond market. How does it shape your view on the fixed income are you buyers we have been long duration. 5 over the benchmark. We have not jumped in and added more we want to see where the yields settle in. Not only in asia, but the inflation data coming in wheat prices are moving up a bit. Oil isagain. We have not seen Commodity Prices tick up i want to talk about the fed you sent us notes. According to the cme, an 80 chance of pause at the september meeting. That is with Voting MemberMichelle Bowman saying she thinks they need more hikes. How does that shape your view short term and long term we had a pullback we have come through that. That is typical with the fed rate hike cycles these are good for stocks. 13 or 15 returns 20 max rally. I dont know were in the pause yet o yet. I think we could see one more hike in september or november. That is the direction. It is hard to get big pullbacks with the fed on pause. Lets get back to the wall of worry. Morgan stanley telling investors pull your money out in days lackluster triggers a retreat. What impact do you see a pullout of the american investors in china . China is difficult. Not only do you have the you cant stimulate china unless you stimulate the Property Market. They hcannot stimulate the Property Market because it is a dead market. In terms of the United States, you are seeing manufacturing construction gdp in the u. S. The highest in 30 years. That is a sign of reonshoring that is a theme for the u. S. A lot to watch. Steve, thank you very much thank you more to come on Worldwide Exchange, including the one word that investors have to know today, but first Rising Oil Prices in saudi arabias production cuts reportedly turning heads in the white house ahead of the key election year. Staging the a. I. Impact for healthcare and what could be a game changer for nurses and doctors and hospitals. And mega tech misstep. The sector responsible for so much of the market year to date gains. A very busy hour when Worldwide Exchange returns. Stay with us please dont go by harry casey, Richard Raymond finch please dont go please dont go please dont go please dont go dont gooo dont go away preorder now and get a free storage upgrade. please dont go dad, we got this. We got this. We got this. We got this. Life is for living. We got this. Lets partner for all of it. Edward jones welcome back wall street trying to bounce back after the rough week. Lets see how london is shaping up with Arabile Gumede in the london newsroom. Good morning, frank the markets did not take rest over the weekend because they are continuing the downward traj trajectory. 30 weaker for the ibex in spain. The markets dipping off today as we follow on from earnings news. Not much as we follow through toward china as well as the u. S. Cpi print. Those will be in keen focus. On the earnings front, siemens stating they need to slowdown the amount of innovations they are bringing to market costs have been heavy for the entity and really denting a lot of the bottom line overall, as i said, downward trade on the european markets. Following on from the number last week out of the jobs numbers from the United States and now the nikkei going up. 20 . The rest of the asia trading picture is negative. More stimulus anticipated from the market as i spoke about earnings, early this morning, we saw saudi aramco post 40 plunge in Second Quarter net profit with Lower Oil Prices and thinner refining margining coming into play for this one we are seeing that dip off in wti as well as Brent Crude Oil impacted the profits significantly. The stock is down. 50 in the trading picture. Things not necessarily doing too well for what is a large company. Spending program and trying to bring out the largest Spending Program for aramco quickly, this is wti and brent crude dipped off significantly it is beginning to pick up as well going into august and the rest of the year thats the picture in europe frank. Arabile gumede live in our london newsroom. Turning to the Energy MarketOil Prices Holding Steady at fourmonth highs after saudi arabia and russia continue cuts for another month. Saudis say it could extend beyond that or deepen the cuts wti and brent crude with the gains in the last four months, although arabile mentioned they are down this morning. Prices at the gas pump at a ninemonth high which is sparking concerns notice white house as President Biden promising to lower inflation lets talk to matt smith from kepler matt, thank you for being here hi. We showed the ft headline lets talk about the gas prices and oil with the political implications the Biden Administration is worried about the Reelection Campaign and the prices. 3. 83 a gallon nationwide. Do you see prices reaching 4 a gallon and when it becomes an issue for consumers . What does this mean for wti . Frank, we have two scenarios here the immediate scenario is 3. 83 here we are past the peak of summer driving season we are exiting that and we will roll on to the next contract which is lower we are not going to get to 4 a Gallon National average unle9 9 on wti which is unlikely the second thing in terms of the election, you will have that focus on the prices at the pump just because the Biden Administration knows if it gets above 4 a gallon, then the focus becomes on popularity drops as the prices rise that is something to worry about this time next year. Got it. Lets switch from the political implications to the Global Implications what does the saudi cuts do to the Global Markets you see with price, frank, we know they are cutting in august. We know they are cutting in september. You are not seeing prices charging higher. That is what saudi arabia is doing. They are concerned of too much supply on the market here and as we get out of the period here in the year and move to the autumn and fall here, prices can come off and thats why they are trying to tighten the market lets be clear, they are doing so we see the crude exports dropping last month by 750,000 Barrels Per Day month on month we also have russia on board with this russian exports may to july dropped the same. 800,000 barrels a day. You are having the barrels taken off the market thats why prices have rallied here frank, we have gone from 67 on wti in late june to now pushing to the 82 mark and straight to resifstance resistance i want to talk about the dollar declining this year we have seen the weakness in the dollar if we continue to see that weakness, how does that impact the oil market and does that give us a bigger chance of reaching what some people are forecasting at 100 a barrel you have a relationship and not necessarily on a daytoday basis, but longerterm period with the weakness in the dollar gives support to crude prices of the it is making it cheaper and other currencies that will with lend support to commodities and crude Going Forward here as we come out of this tightening cycle from the fed, we should see weakening dollar coming through as that happens, that will provide an amount of support you believe the ceiling is below 90 a barrel yes, exactly. Yes. We have seen strong positions around 81 for wti. We still can push through that this coming report wednesday will perhaps get a build we have headwinds for crude prices s prices a lot of headwinds. Gas above 5 in california here. Not a big political issue. It is coming full circle matt smith, thank you. Thank you coming up on Worldwide Exchange, another barbie milestone and still no Mega Millions winner and Live Streaming home for the muskzuck cage match more to come on Worldwide Exchange. Stay with us fan 1 there ya go thats what im talkin about josh allen is this your plan to watch the game today . hero fan uh, yea. I have to watch my neighbors nfl sunday ticket. josh allen its not your best plan. But you know what is . Myplan from verizon. Switch now and theyll give you nfl sunday ticket from youtubetv, on them. hero fan this plan is amazing josh allen another amazing plan, backing away from here very slowly. fan 1 that was josh allen. fan 2 mmhm. vo for a limited time get nfl sunday ticket from youtubetv on us. A 449 value. Plus, get a free Samsung Galaxy s23. Only on verizon. What if buildings could tell you how they could be more efficient . Im listening. Well, with ibm, you can use software to help you connect and analyze data from hvacs to elevators to lights. What if we use aidriven insights to pinpoint inefficiency . Yep. And act on it. Saving energy, money. And emissions. Yup. Thats a big one. Now youve built Something Better for everyone. Thats the sustainability solution ibm and a Global Real Estate company created. What will you create . Ibm. Lets create. Well come back to worldwid exchange. Family doctors say they are burned out a pain point is filling out medical records. Now there is an a. I. App for that Bertha Coombs is looking at tech to help doctors in the office. Bertha, good morning good morning, frank when you go to the doctors appointment and you see them spending a lot of time typing into the Electronic Health record most finish up the notes later at home in what is commonly known as pajama time microsofts unit has an a. I. App helping to put pajama time to bed. Dr. Johnson starts patient visits by pulling out her phone. It listens in on the visit to pay more attention to you. Are you comfortable . Reporter use this app has freed her from typing when seeing patients. The a. I. Program writes the summary for her which freed her from pajama time which should be the time you are getting ready to wind down for bed we are charting and noting and doing things to enhance the life of the patient, but not our quality of life. Reporter at the baptist health, a. I. Programs help doctors and nurses fight burnout. The economy of scale and economies of healthcare leveraging a. I you eliminate all of the administrative overhead and allow people to work reporter a. I. To reduce tasks could help hospitals cut costs 5 to 11 in the next few years. For physicians, up to 81 . The upfront investment isnt cheap cheap. It costs me x and i made my staff happier and more productive reporter about the productivity the pracajama time is now reserd for family. This is quality of life were people, too. The new version of the app using open a. I. Technology actually writes the notes instantly. The version she is using takes a couple of hours. Microsoft is working with epic, the nations Largest Health records firm on taking the notes and leveraging the ehr some hospitals are using it for followup notes. One doctor said the notes are nicer than hers she is sure the patient knows it is not her writing it. They do have a disclaimer. It makes it easier for Health Professional professionals. They were stressed, obviously, during the pandemic. How can a. I. Complicate security for hospitals and doctors . That is one of the concerns obviously, people who are trying to hack a hospital can use a. I. As well to try to get through that system. We have seen even large systems like hca with a massive breach that has exposed millions of patients personal information. It is one of the things people are talking about and talking about in terms of building guardrails into this even as were starting to roll it out. Some people worry we might be playing catch up. A lot to watch and a lot to consider with a. I. Which is useful, but concerns Bertha Coombs, another great report thank you. Time now for a check on more of the headlines with Frances Rivera in new york frank, good morning saudi arabia hosted the peace summit for ukraine over the weekend. There was a surprising movement on the diplomatic front. China joined the talks signaling a new approach to moscow the party is reporting to be in support of a third round of talks to finalize a tenpoint peace plan endorsed by kyiv, but not the kremlin. The summit in jeddah hosted everyone but russia. And former President Trump lashed out at jack smith calling him a maniac the judge in his election interference case requested trump be blocked publicly on parts of the case. The legal team of trump is facing a deadline of today to respond to the request. The officials declared an emergency after part of the glacier broke along the lake the mendenhal river rose to 15 feet some were ordered to evacuate with the rising flood waters. And pups were wet at the world surfing championships. They competed for the golden surfie award you are up to date, frank. Back to you. That looks like fun for the dogs i dont think my dog can surf. Dogs and humans surfing four, not ten. Hanging ten. Thats a good one with. Frances rivera, great to see you. Straight ahead on Worldwide Exchange, a new contender looks to take on the competition on the high end if you havent already, follow our podcast on apple or spotify or other podcastpp as. More Worldwide Exchange after this old i wouldnt qualify for the erc tax refund, so i called innovation refunds. Their team of independent tax attorneys will work with your cpa to determine if your company is eligible. [whip sound] take the first step to see if your Small Business qualifies. It is 5 30 a. M. In the new york area. There is more ahead on Worldwide Exchange. Futures are looking to bounce back after a rough week for stocks and tech as investors look to scale a new wall of worry. Sticking with tech, a closer look at mixed earnings for the mos