CNBC's "Fast Money" Podcast Summary Episode: The Latest U.S.-China Tit-For-Tat… And Fast Money’s Obesity Week Continues
Release Date: December 3, 2024
Host: Melissa Lee
Panelists: Guy Adami, Tim Seymour, Dan Nathan, Danny Moses
Guest: Vipin Garg, CEO of Altimmune

1. Introduction

Hosted by Melissa Lee alongside a panel of seasoned traders—Guy Adami, Tim Seymour, Dan Nathan, and Danny Moses—this episode of CNBC’s Fast Money delves into escalating U.S.-China trade tensions, strategic investment moves in the cryptocurrency market, and advancements in the biotech sector focusing on obesity treatment. The show provides actionable insights aimed at guiding investors through these turbulent times.

2. Escalating U.S.-China Trade Tensions

The episode kicks off with a deep dive into the latest tit-for-tat developments between the U.S. and China. China has retaliated against recent U.S. chip export restrictions by banning the sale of critical minerals, pivotal for both military and consumer industries.

Key Points:

• China’s Ban on Critical Minerals: In response to U.S. restrictions aimed at curbing China’s advancements in weaponry and AI, China has now excluded certain rare minerals from its exports to the U.S. This move significantly impacts industries reliant on these materials, including electronics and automotive sectors.

• Historical Context and Impact: Panelist Tim Seymour notes, “We’ve done it here. Over the past 20 years, companies have moved away or drawn down stockpiles, but tensions are getting worse” (03:08).

• Economic Implications: The discussion highlights how these tensions could disrupt supply chains and increase costs for U.S. companies, potentially leading to broader economic repercussions.

Notable Quote:

“It's the ratcheting up of the rhetoric that's important,” — Danny Moses (04:15)

3. Betting on Bitcoin: MicroStrategy’s Strategic Moves

The conversation shifts to the cryptocurrency space, focusing on MicroStrategy’s aggressive expansion in Bitcoin holdings. The CEO, Michael Saylor, continues to bolster the company's position in the crypto market, raising questions about Bitcoin's future trajectory.

Key Points:

• MicroStrategy’s Bitcoin Acquisition: Over the past week, MicroStrategy has acquired an additional $1.5 billion worth of Bitcoin, bringing their total holdings to over 400,000 coins valued at nearly $40 billion (43:17).

• Market Influence: Panelist Dan Nathan remarks, “I've never seen anyone committed to something you take the biggest religious zealot” (43:17), highlighting Saylor’s unwavering faith in Bitcoin’s potential.

• Risk Assessment: The panel discusses the risks associated with MicroStrategy’s leveraged investments, noting that such concentrated exposure can lead to significant volatility (44:09).

Notable Quote:

“It's almost like a 5x levered play,” — Danny Moses (44:34)

4. Obesity Week: Altimmune’s Innovative Treatment

A focal point of the episode is Fast Money’s Obesity Week, featuring an in-depth interview with Vipin Garg, CEO of Altimmune. The company is advancing its experimental weight loss drug, pemvidutide, into Phase III trials, aiming to outperform existing treatments like Wegovy.

Key Points:

• Pemvidutide Advantages: Pemvidutide is a dual agonist targeting both GLP1 for appetite suppression and glucagon to increase energy expenditure, resulting in significant fat loss while preserving lean muscle mass (33:04).

• Clinical Trials: The drug is currently entering Phase III trials with 5,000 subjects across four different studies, focusing on both obesity and MASH (Metabolic Associated Steatohepatitis) liver disease (33:04).

• Market Position: Vipin Garg emphasizes the drug’s potential to address comorbidities associated with obesity, setting Altimmune apart from competitors (33:04).

Notable Quote:

“What are the comorbidities of obesity that you're able to treat? And that's where pemvidutide shines,” — Vipin Garg (33:04)

5. Other Market Movements: AT&T, Salesforce, and Tesla

The panel reviews significant movements in major stocks and sectors, providing strategic insights for investors.

AT&T:

• Investor Day Success: AT&T unveiled a three-year plan committing over $40 billion to dividends and share buybacks, aiming to double its fiber optics business driven by AI demand (28:51).

• Panel Insight: Danny Moses highlights, “Their investments what got them in trouble in the first place,” expressing caution despite the current positive market reaction (29:33).

Salesforce:

• AI Integration Boost: Salesforce reported a strong quarter bolstered by its AI initiatives, raising its earnings and sales guidance. CEO Marc Benioff emphasized the rise of digital labor as a game-changer for the company (23:42).

• Market Reaction: The stock surged nearly 7% post-earnings, reflecting investor confidence in Salesforce’s strategic direction (24:08).

Tesla:

• Delivery Concerns: Tesla shares dipped after new data revealed declining deliveries from its Shanghai factory for the second consecutive month. Despite this, panelist Danny Moses remains cautiously optimistic about the stock’s long-term potential (15:33).

• Elon Musk’s Leadership: Melissa Lee questions the impact of Musk’s leadership decisions on shareholder value, noting, “Elon is talking about cutting $2 trillion from the U.S. budget,” signaling potential risks beyond corporate performance (15:47).

6. Private Credit Market: BlackRock’s $12 Billion Bet

BlackRock made headlines by acquiring HP Investment Partners for $12 billion in stock, significantly bolstering its presence in the private credit market.

Key Points:

• Market Expansion: This acquisition positions BlackRock as the fifth-largest manager in the private credit space, anticipating the market to grow to $4.5 trillion by 2030 (40:20).

• Skepticism and Risks: Panelist Melissa Lee cautions against the unregulated growth of private credit, drawing parallels to the subprime mortgage crisis and warning of potential future defaults (41:27).

Notable Quote:

“We know why it's growing and there's nothing wrong with what they're doing. All I'm saying is that people need to be aware,” — Melissa Lee (41:27)

7. Final Trades and Market Sentiments

In the concluding segment, the panel shares their final trading picks and market sentiments.

Key Points:

• United Airlines: Despite a recent dip, shares remain up over 132% in 2024. CEO Scott Kirby anticipates record December revenue (31:24).

• U.S. Steel and FedEx: Both companies saw declines, with FedEx downgraded by analysts due to execution and policy risks (32:42).

• MicroStrategy’s Speculation: The panel debates whether MicroStrategy’s deepening Bitcoin investments will propel Bitcoin to new heights, with mixed opinions on its sustainability (43:17).

Notable Quote:

“It's almost like a 5x levered play,” — Danny Moses (44:34)

Conclusion

This episode of Fast Money provides a comprehensive overview of critical market dynamics, from escalating geopolitical tensions and strategic investments in cryptocurrency to groundbreaking advancements in biotech. The panelists offer valuable perspectives, highlighting both opportunities and risks, thereby equipping investors with the knowledge to navigate the complexities of today’s financial landscape.

Timestamps for Notable Quotes

• [03:08] - Tim Seymour on historical context of US-China trade tensions.
• [04:15] - Danny Moses on the significance of China’s rhetoric.
• [33:04] - Vipin Garg explaining pemvidutide’s benefits.
• [43:17] - Dan Nathan on MicroStrategy’s Bitcoin commitment.
• [44:34] - Danny Moses discussing leveraged plays in MicroStrategy.
• [41:27] - Melissa Lee cautioning about private credit market risks.

Note: This summary excludes advertisements, intros, outros, and non-content sections to focus solely on the substantive discussions and insights shared during the episode.