(This is a wrap-up of the key money moving discussions on CNBC’s “Worldwide Exchange” exclusive for PRO subscribers. Worldwide Exchange airs at 5 a.m. ET each day.) Investors are looking for safety in big box retail while there are concerns the bond market could be the next battleground for the trade war. Worldwide Exchange Picks: Costco and Walmart Victoria Greene of G-Squared said retailers such as Costco and Walmart are the closes to a “safe haven” in the volatile environment despite some exposure to the 104% tariffs placed on Chinese imports. “They are going to weather things better than most,” said Greene. “You are still going to have to buy groceries, you are still going to have buy clothes, you still have to buy basic necessities and I think both of those provide the most value and bang for your buck. … They are very strong on grocery which I think gives them the defensive posturing.” Former Commerce Secretary China tariffs The Trump administration imposing 104% tariffs on Chinese imports upended the view of former Commerce Secretary Carlos Gutierrez, who previously said he believed that President Donald Trump’s tariffs would be reduced or rescinded by the middle of 2025. “We are now in a territory that no one expected,” said Gutierrez. “We have to realize it’s not over, the President is doubling down as far as it’s gotten, as dramatic as it’s gotten, there is still more to come.” He added: “The real question is how long will this last. … The more time that goes by the more damage will be done.” Looking ahead to bond auctions There are two key auctions for Treasurys coming up, a $39 billion sale of 10-year notes on Wednesday and a $22 billion sale of 30-year bonds on Thursday. David Zervos of Jefferies said that, if there is a slowdown on foreign demand for U.S. debt, it could be a sign of another battlefront opening up in the trade war. “It gets messy fast, ” he said. “This is a trade war and if countries can use their stock of U.S. financial assets they have accumulated.”
