tv Maria Bartiromos Wall Street FOX Business March 8, 2020 9:30pm-10:01pm EDT
hero. just let the volatility died out. to make it a level little so thanks everybody great ideas. for more check out this week's edition of barron's roundtable and don't forget to follow us on wonderful weekend. maria: bartiromo wall street is next. welcome to the program that analyze the week that was and that helps position you for the week ahead. happy weekend everybody. i am maria bartiromo thank you for joining us. coming up in a few moments the founder of value capital jeff oven is trevor milton they are going to talk about the electric market and this electric truck makers merger news that'll take the company public later this year. we will also talk investing with jeff oven has been a tremendous investor after what's been a wild week on wall street verso blockbuster drop support for february got
the number on fridays the u.s. economy added 273,000 new jobs destroying the economist by nearly hundred thousand. the unemployment rate ticked down to below of. breaking down to look ahead anthony chan informant trunk campaign economic advisor steve moore. it's great to see your gentleman's weekend. thanks mr. being here. your reaction to the job number and then i want to look ahead and it's expectation for the outlook is unnerving for investors. >> this report clearly shows that job figures are still in a quarantine. we are not seeing many symptoms of this virus. i'd like to say it's the calm before the virus. warm weather has helped construction, it's also the health numbers coming in strong. transportation warehousing already starting to show a few cracks. but basically it won't be until next month that we really see the real brunt of it. as more and more workers are staying at home, they are
probably not going to put pressure on the wages. those organist stay stable at 3% range or drop even more in the numbers will start slowing but it's got a good head of steam and we will get through this. >> we will get through this too but the market is nervous about the economy is gonna do we are down more than 11.5% from the highs, with these thousand point gyrations. so at first can we take a minute to celebrate this amazing jobs quest market really was incredible. when you take into account the revisions from previous months, it was closer to 350,000 jobs. that's amazing because the rest of the world was not growing even before the coronavirus. so something is going amazingly right for this economy. i was a trend economic advisor i think our tax cuts and trade policies, and deregulation of had a very positive effect on the economy. but you're also right this is a bit of looking in the rearview mirror. this is for february.
we are now in the middle of march, and there is no question that we are going to see layoffs this month. because of this paralysis in the economy. i do think there is been an overreaction because this is a virus, but the idea everybody's going to be a hermit is dangerous for the economy. finally, i agree with you maria, you sit on your show friday there a lot of buying opportunities out there in stocks. i am not saying we haven't hit bottom, we may very well see another couple weeks of a wacky stock market. you look at the blue chip stocks and prices. if you are in the market for not just 60 days but two years, five years, ten years, if you buy these stocks now you are going to be sitting pretty good five years out. kennedy maria: look at the airlines, banks, you've got an opportunity to buy great bargains in the stock market having said that. we now have 4 million tester so out. we actually are going to see
the tests happen for most americans. we haven't been testing. we are going to get a lot more coronavirus cases next week, the up weeks to follow is that in a scare investors customer so i don't think is going to scare investors 30 scared enough. but if you look at all the virus, and i've looked at every single virus although back to 1918, they usually last less than a year. there were so much a spanish flu in 1918. bauman was started in the spring by the summer is burned out. it came back, but remember we have a medical arms race today the speed we are going through to actually create some sort of antiviral, is a lot quicker than it was back then. i have a strong suspicion that certainly within the next five to seven months this thing is going to be dying down. we will really have a handle on it. that market is price to suggest this is gonna last the next three plus years. maria: its price like we are all gonna die. it's ridiculous. will we get out of this. we are going to be in a much
better position in terms of stimulus, prospects for economic growth, is that right? >> you made another very good point under show this week was that people who have been exaggerated the death rate from coronavirus. they're looking at the number of people who contracted the virus and the number people died. with their way underestimating people who have actually had the virus had just gotten well from it. this idea it's a two or 3% death rate from this, most doctors are now agreeing it's too high. maria: have to look at rates before you guys go. what you want to say about a ten year yield that drop before -- all day friday we were looking at seven tenths of a% yield on the ten year. so of done a lot of research my doctorate was on the yield curve. this tells me that the lower ten yield and tear and ten year versus two year we are hovering close to 30 basis points.
still not screaming recession to me. maria: but isn't that the worry we have yields will regard that indicates a recession is on the rise quest mark anthony's not buying it. so have a slightly different take on that. i think we have a real danger of deflation in the economy right now. when we have people buying a 30 year battle at 1.31.4%, there is no sign of inflation whatsoever in the economy. that should be proactive. i want more dollar liquid equity in the economy that would bring up these rates a bit and stop the deflation. maria: great conversation thank you gentlemen. don't go where jeff and trevor as a struggling actor, i need all the breaks that i can get. at liberty butchumal- cut. liberty biberty- cut. we'll dub it. liberty mutual customizes your car insurance so you only pay for what you need. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ (groans) hmph...
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transitioning with a company it will be worth $3.3 billion in joining me valueact founder jeff obben and trevor milton. great to have you both. i know it is this special process in terms of going public, let's talk about first how this is officially public in two months? but when the merger closes right customer so we are actually on the market listed under vector iq which is be tea iq. it's a special acquisition company that is made to expedite going public. there's never been a better time in this world to go public for zero emission vehicles. the technology companies, tesla has shown they are way up over $100 billion in value. we knew right now we are at the latest in electrification for heavy-duty transport partly want to make sure that we are first to get the same type of value that tesla saw on the motorist motive side. maria: i love this story before he started he said we
are the amazon of electric vehicles. i want to get to that. jeff, you saw this is a really great idea enough to make it one of your biggest investment in your spring fun. >> that's about additionality and most of it is public market investing. we are trying to be active run environmental social bulls. we think it will drive value and change corporate strategy. inside the board, the toys always done but with a different lens. the fortunate thing for me, and that's a compromise world to a certain extent. a new meat founders like trevor that her mission driven and running for the goal, it is refreshing. and it has kinda changed the world stuff. you've got a blank piece of paper to design. maria: i know you have identified so many growth stories in your career. when you say this is something special, i believe you.
i want to ask you about the electric truck market and electric cars in general. a couple of months ago i did a one-hour special on ai. what i took way for my ai conversation is that we are not going to see electric cars on the road for a long time. what is your expectation of when the struggle be on the road? >> it will be on the road next year which is awesome. the factors going up right now, we are kicking it off this year. vehicles come off the production line next year. so we are the post- oem around the world i have a full electrified semitruck in the world in production. that is amazing. we beat dimon, bobo would beat everybody. we are like that tesla trucks most important thing to understand is that if you look at amazon, what made amazon so special, amazon was not just a retail company. they didn't just sell goods they handled the entire logistics birds if you buy a package from amazon i will get a text saying your packets obey your door in three hours and 30 minutes or less. and it's amazing because they
own the entire supply chain they are vertically integrated. nikola is the same way. when you buy a truck you have to buy fuel and service and warranty, we wanted to simplify the whole thing, stabilize the whole thing like amazon did for e-commerce why do a nikola issue lisa truck, we cover the fuel, the warranty, the maintenance everything for each of the owner no longer has to deal for any of that stuff. it's all zero emission from the beginning to end and it's cheaper to operate and diesel. that's the first time in history that zero emission has been competitive with diesel. maria: i know with presentations and new learning more about this, jeff commented terms of sustainability and lowering emissions that really got you interested, right? >> to a certain extent, i went down the hydrogen rathole in 2017 and i called nikola because when you look at fuel cell or electrolyzer companies, nikola was there
biggest come bonita b. learning from trevor and the team about what hydrogen is, the key for this company is trevor solve the chicken and the egg by having an integrated model of. mile model, he originated an order book of zero emission trucks, that then advertises and pays for the net work, the feeling network. and with long-haul trucks, hydrogen is the best solution because the energy density in the tank is so great it can go further with less weight. so the hall is better. it's really kind of the endgame for long-haul trucks for sure. maria: i know this is the guy you want to be with the terms of backing and support because you learned as much as you can about this subject and you have a belief in growth. where does the growth come from, trevor, from your standpoint at nikola let's say five years out. so nikola is very unique we
are not a truck manufacturer although we are, we are really an energy tech company. so seven years from now nikola will be the largest energy consumer in the world. that is insane to think about. and it is because of how much energy is consumed about charging electric battery trucks and are hydrogen trucks paired we control that whole infrastructure. so by doing that, we are building out 700 hydrogen stations around america. it won't just fill our trucks it will fill our competitor trucks. we've got over $14 billion ready to go with lease orders from customers right now with companies like anheuser-busch ordered $800 million of leases. we are absolutely killing it right now. where we go from here will be sold out probably for many years. maria: that is an incredible growth story. let's take a short break and then will return our
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maria: welcome back we are back with valueact founder and chairman jeff ubben and nikola motor company ceo trevor melton. there's people can get in and an early stage with growth. i want the rules to be loosened so that people can get in on an idea sooner, and we don't have another situation. you say there is another connection here. tell about the connection. so ultimately nikola is going public barely compared to most companies. think that's how it's going to be in the future for a while. the reason while is when that we work debacle happen, most of the very large investors around the world that were piling billions into startups and tech companies, said look, we had no idea what was going
on, it was very hard in hard for us to see we want people to have complete transparency now we want to make sure our money is protected. money in the private sector became very difficult to me had to give up a lot. the public was dying for stock, to buy stock in nikola so we decided let's go public early. even though we are a few months early, it normally companies would wait until they are right in production to go. i said let's go one year early, let's let the private individuals come in. over 20 i believe is around 20 million shares of this traded yesterday when we said we were merging with vt iq. and it will be changed over to nikola and ke and kla when the merger is complete. it was amazing to see when we announced it and the market -- people went crazy.
i think it ended at 12 or 15% when the market was down 800 points yesterday. maria: they see this as a special situation pray but why did you go the route of this reverse merger. i know emerging galactic did something similar. why that route? >> it's really about timing. to go public as a year-long process. and with this you can do it four to five months. it was just really about timing. so and the ability to raise $750 million which is morning with an ipo. maria: you think your company competitor will be tesla? so fill priming the closest around the world because the other manufacturers are way too far behind. we are five to seven years ahead of any competition accepted tesla. their semitruck will come out, it will be similar to ours. it will be battery to electric only and we do battery, electric, and hydrogen so batteries get up for 300 miles after that the weight of the additional batteries becomes a
problem. that's way can also take hours to charge those trucks. that's why hydrogen is so good over 300 miles. five minutes -- five to 50 minutes to fill it up with hydrogen and you can go another 600 milesburg with battery it would take hours to stop a truck in charge of her tenure in the battery up to me charge it. maria: let me ask you, we look at this market it's come down off the hyperion time but the private market as well as the public market. after we work everybody change. after receiving this week, what is your change on the broader markets putting nikola aside for margaret reese surprised the decline in the nervousness receipt of the market? >> the market is overvalued as a market but there is tremendous variation, value stocks have been difficult that's what we have done. historically, so i do like that you take some of the air out of the balloon for sure,
for whatever reason whatever the excuse may be. maria: you mean in whether it's coronavirus or whatever. >> that's healthy. value stocks they throw the baby out with the bathwater. they were already cheap and now they're cheaper. when i look at the lay of the land, when i can find -- bp is an interesting company. one of the things they want to do with oil companies as we went to the capital budget of oil companies as nikola to pursue our business. if you look, we have we have the truck partner cnh, a solar partner, and probably should have a fueling partner over time. and so the idea of grabbing the oil company budgets and making them part of the solution, is interesting to me. the oil committee stocks are valued it like three times as if they are going out of business. it's difficult to put transport oil out of business
by the way. what we are doing, is unique and fantastic. it does it is going to take a while to build 700 stations. maria: i love the story of you deciding to getting involved with bt. you were sold on their plan to lower emissions. it's one of your principles which is so great. you aren't worried? we had a market upset, it's a better situation because -- are you going to be able to buy companies at lower prices? >> that's what we do. maria: 's you wanted open and have a? so we had some cash was good. maria: do you worry things are slowing down materially. no traffic in-and-out of china with the coronavirus? worries about going out? will the slow things down? >> there are some fundamental fallout for sure, the supply chains we talked about are going to get redone. to a certain extent.
that is disruptive. food safety is interesting, nobody's talking about it. but that's interesting. china has to address that because it could continue to happen. so there could be stuff that increases the risk, generally. but longer-term in nature rather than all my god, there's somebody sick in new york sell the stock market. maria: there's long-term and short-term prudent in terms of your issues around nikola are you worried about shortages in particular going public? so the good thing about transportation is it's the very last sector to really be affected because everything in your life has to be delivered to your house. you will sell your toys, you won't want vacation, but your staff will still show up on nikola trucks are amazon vehicles to your house. so to matter what comest only to move goods. it's the last market to be affected. maria: what an incredible growth story, congratulations to you both. thank you for sharing it with this tran six founder jeff
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maria: welcome back we will back here next weekend is sure to watch each week and friday nights 910 eastern for wall street, we talked to the best investors around to get you a leg up on this markets and its gyrations. plus sunday morning over on the fox news channel join me for sunday morning futures got a big lineup. hud secretary doctor ben carson along with georgia congressman doug collinson joining me live 10:00 a.m. eastern on sunday.
on fox news channel. right foxbusiness start smart weekdays 210 from six to 9:00 a.m. eastern for mornings with maria, right here in foxbusiness i hope you start your day every week day with us on foxbusiness. that will do it for us tonight, thanks muchrsrsrsrsrsrn hall tomorrow. have a great sunday everybody. ♪ maria: good technique morning. i am maria, welcome to sunday morning futures. ids declared a state of emergency as coronavirus continues to spread across the country. italy is closing its borders with 16 billion people right now under quarantine in the northern part of italy. as a of emergency amidst a number of coronavirus cases across the country. coming up in this exclusive interview, andrew cuomo in fear to address these times and what to do next? type magazin