Episode summary
Amb. Tilman J. Fertitta on market volatility: Everyone is a bit skittish because it's the unknown
CNBC Power Lunch
· · 5 min · Hosts: Brian Sullivan, Kelly Evans · Guests: Tilman J. Fertitta
Summary
Tilman J. Fertitta said the market’s sharp reaction to the election is really about uncertainty, not a lasting change in fundamentals. He argued that investors and business owners are skittish because they are trying to figure out what a new presidency will mean, but that America remains a strong capitalist economy.
He was confident that Texas and his businesses can keep growing under any administration, pointing to his own experience across multiple political eras. He also rejected the idea that Europe’s energy problems will be solved by alternatives alone, saying LNG and oil remain necessary and that Italy is increasingly recognizing the importance of energy for growth.
On Europe, Fertitta said the continent’s energy crisis is still acute, with Italy relying heavily on American natural gas, much of it tied to Texas and Gulf Coast export projects. He said the momentum behind LNG buildout should continue, and that even in a down market the selloff should be viewed as a chance to buy rather than a reason to retreat.
Key takeaways
- Tilman J. Fertitta said the post-election market selloff is a reaction to uncertainty, with investors "trying to feel it out" rather than responding to a permanent change.
- He said Texas and his companies can keep growing under any administration, arguing that American businesses have expanded across different political regimes.
- Fertitta argued that Europe’s energy crisis is a growth issue as well as a supply issue, and that LNG and oil are still necessary.
- He said Italy is becoming a key LNG gateway for Europe and that the country is realizing energy is central to economic growth.
- Fertitta called the down market a buying opportunity, saying "this is just a blink" and not a structural problem.
Notable quotes
“everybody is a little skittish because it's the unknown and we all worry about the unknown”
“Texas economy, it's kind of it's America and we talk about like compared to Europe, America's growth compared to the the rest of the world's that, you know, Germany's whole stock market isn't even worth as much as Apple”
“You got to have LG and you got to have oil and and Italy is the gateway to Europe with LG and realizes the importance of it”
“Energy will help a country grow. And I think that Italy is realizing that the importance of energy”
“you've got to take this as an opportunity to buy. This is just a a blink”
How the episode opens
Welcome back. Brian Sullivan is live in Rome today, drilling down on Europe's energy crisis. And he is joined now by a very special guest who will weigh in on that, the election, the economy, and much more. Brian, take it away.
Yeah, Kelly, thank you very much. Here with Tom Ferta, of course, everybody knows him. He's the owner of the Houston Rockets. He is the owner of Landre's 700 plus restaurants, the Golden Nugget casino chain. And by the way, the reason we are here, the ambassador to Italy, uh, ambassador for TA, thanks for thanks for sitting down with CNBC. Heck of a day today.
Always great to be here with you, Brian. And it is kind of a heck of a day back there in America today.
No, it is. And and let's I understand that you are now the ambassador. So things are a little bit different than the the Tilman that we're kind of used to speaking with.
Um, but do you do you think today is is about the election? I know you're not a market guy, but you do own stocks. Oh, it's definitely it's it's a reaction just like yesterday was a reaction and and today you're getting another reaction and that's what happens anytime you have a big swing like this, a new presidency or or what happened yesterday.
People are trying to feel it out, you know, even a guy like myself rather both from being the ambassador uh here trying to make sure it figures out what's going to be different and and also I I still own a company there even though I'm not running it. I still own it and and and in your brain you're trying to figure it out what's going to change for us.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- europe energy crisis
- market volatility
- texas economy
- midterms
- data center growth
Companies and tickers mentioned
- Houston Rockets
- Landry's
- Golden Nugget casino chain
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Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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