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tv   Power Lunch  CNBC  November 11, 2016 1:00pm-3:01pm EST

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that's what i did today. >> josh? >> well, i think it's a smart pose to posture to have. put people back to work you don't want to be in treasuries. >> you can be short bonds longer term. tech got destroyed. >> rates are going higher. >> thanks all of you. great weekend. "power lunch" starts now. good afternoon, everybody. i'm tyler mathison. the commander-in-chief just how hard is that transition? you'll hear from a person who knows, former vice president dan quayle. up in flames. why are protesters trashing one iconic made in america brand? the reasoning may surprise you. it's been a long week but we made to it friday. so take a page out of this lady's book and dance. she's got it going on. "power lunch" starts right now.
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i'm michelle caruso-cabrera. the dow is negative. don't let the red arrows fool you. it's having its best week in nearly five years. the nasdaq a bright spot. holding in the week. reversing what we saw earlier in the week. gold still getting hit touching first five month loss. >> i'm brian sullivan. watch me. here's what else is happening. the "wall street journal report"ing donald trump's advisors are considering scaling back parts of dodd-frank. opec oil production hit a record high. iraq keeps pumping more. we'll get the latest counts out. alibaba reporting a record $17 billion sales on singles day. it's turned into one of the
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biggest shopping days of the year. not helping bab a's shares. >> only 60 hours since donald trump became president-elect of the united states and in that time he's been to the white house, capitol hill and back on twitter. what's on his docket for the next 60 hours? let's kick things off with eamon javers. >> reporter: well no major names yet for the trump-pence administration other than trump and pence. you do get the sense some names may be coming as early as this afternoon. the trump team has been closed mouth about all of this. last night we obtained a chart who shows the players are behind the scene on the trump transition. we posted that on so everybody can take a look who the key players are for donald trump. i want to highlight for you a couple of those who are key players in the finance investment world. kevin o'connor is the manage
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director and general counsel for steven cohen's point 72. he's now the key person on the department of justice transition team for donald trump. so that will be a name to watch going forward. paul atkins is the ceo potomac global partners. very influential player in figuring out exactly which regulations the trump team wants to scale back. finally ray washburne, he's on the commerce department transition team for trump. a couple of name that are behind-the-scenes working on these policy and personnel issues. we're waiting to hear, guys, for more names to come out. the people that trump decides to put in place will be so key in deciding where trump comes down on these very many detailed issues that wall street is waiting for. >> thanks. on those questions our next guest is uniquely qualified to understand a trump presidency and where it's heading.
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dan quayle served as vice president for george h. bush. by the way he correctly called the trump victory last may when he said quote clearly he's got good political instinct, he's a winner and unusual. obviously very different. not going to play by the rules but i think he can win. mr. vice president, welcome back to cnbc and "power lunch". good to see you. >> thank you. >> you've been through this transition process. he's going from campaigner in chief to now commander-in-chief. what does he do at this point and how does he make these decisions about who will be in his cabinet? >> he has to get the best and the brightest. he ran against washington, he ran against the democratic party, he ran against the republican party somewhat. he's the most outside president that we've had certainly in my lifetime and for a long, long time. but he is a winner. we saw that.
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he beat 16 people in the primary. he beat the clinton machine. he wants to win. i think he'll be very careful on who he puts there. loyalty is very important. you've got to be competent and capable. there's a couple of key positions that people should be watching. one chief of staff. that's probably almost as important as secretary of state. you got treasury, attorney general. >> who should be in those two positions do you think? >> i'm not going to get into that. the reason chief of staff is so important is because that's usually the person that has the last word with the president before these major decisions are made. the chief of staff and the vice president. so who he puts in there as chief of staff is going to be of critical importance on how the trump administration functions. >> from one self-admitted member of the establishment to another, there are all kinds of wall street names being thrown around
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fortressy. and yet he ran as an outsider. does that make any sense? what would you think? is that a mistake or is that smart? >> no, actually i think that would probably be smart but it's up to him. i'll tell you this the way it works. you put someone in treasury, yes the secretary of treasury they go up to testify on capitol hill, they set policy decisions, they make regulatory decisions, but the way it works is that the white house sets the policy. and that's why i say that donald trump has got to make sure he has loyal people around him that are going to execute his policy. they may not agree and probably won't agree with his policy decisions 100% of the time. i would be very surprised. it didn't happen in our administration. i don't know of any administration it happens. you need those loyal people that will execute the policy. policy comes from the white house and that means that the president of the united states sets the policy, his cabinet executes. >> mr. vice president, said some nice things about mr. trump.
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i'm sure he has some political weaknesses as well. knowing what you know what do you think will be the biggest hurdle that donald trump will face when he enters the white house? >> i think he is a person that likes to run everything and likes to be very hands on. he was that during the campaign. he had a very small campaign staff. he made almost all of the decisions. he says i'm going to do it my way. i know there's a lot of discussion to try to get away from these rallies and things that really propelled him into the white house. but there's so much to know and so much to learn in a very short period of time. he's going to have to rely on other people for their analysis, for their judgment, for their recommendation. i think snininstinctively that' counter to the way he operates. you saw the picture yesterday. it's a picture of a donald trump
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who realizes he'll be president of the united states. and let me be very clear about this. the oval office shapes the individual. it's not the other way around. the office of presidency will shape donald trump. and it's up to him to how he wants to manage world affairs as being commander-in-chief. >> let me ask a couple of questions if i might, mr. quayle. one is how would you advise him with respect to the overall composition of his cabinet as to whether he should have mostly experienced quote insiders or mostly outsiders and would you advise him photo to tweet so much? >> i'll leave that up to him. i think they will take that twitter away from him. but from time to time 3:00 in the morning we still may get tweets from the president of the united states. i doubt it goes away completely. look, he needs competent people. he needs people with experience.
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but he also needs outsiders. he ran as an outsider. the people that are going to come in to his administration i would assume support the trump agenda. the trump agenda is fairly simple and fairly straightforwa straightforward. he wants to cut taxes, roll back regulation, he wants to take a deep look at foreign policy and to see if we're doing things right. he's going to have people in there that have different ideas not only from the obama administration but previous republican administrations. that's fine. that's what he ran on. let's take a look, step back, look. the reason he won because things aren't working. there's dysfunction in washington. people want a change. that's the reason he won. people wanted change. so he's going to change things and he's got to get people in there that to change things with him. >> let me follow up something you mentioned a moment ago and that is the oval office shapes the person and not the other way around. when you became vice president what kind of change did you feel
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on that election night and as you began to sort of wrap your mind around the idea that i am literally a heart beat away. >> well, i have been in the house for four years, eight years in the senate so, obviously, i knew washington. i knew president bush for ten, 12 years at the time. we were friends. we had discussed policy. so i had a fairly good idea of what the job was all about. i visited him a lot when he was vice president. so i had, you know, a deep understanding. now that's not like when you're in the position. you know, when the transition takes place, when you're sworn in on january 20th and you raise your hand and take that oath of office, then all of a sudden it not only really sinks in, it is reality and your life is changed forever. >> mr. vice president you're now a business person. and the portfolio that your company has as many different
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sorts of financial, i'm curious what are the conversations in terms of the business climate and what is it like to do business under a trump administration versus a few days ago. has it improved? >> the election of donald trump i think was a great relief to most of our partners at cerberus. a third or maybe even more voted for hillary clinton. but in our environment, in any business environment the one thing that really has shackled productivity, job creation is this over regulation and the heavy hand from washington and all the bureaucracies. this is going to change. now it's not going change as much as we would like. it won't change as much as donald trump wants because it just doesn't work that way. and i think a lot of his supporters a few years down the road probably will be a little disappointed. but they are going to realize that washington or at least our
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political system works in a very slow methodical way. there are some things that key do. i think there's great relief in most of the business community that creates jobs that are on the entrepreneurial side of things. a great relief that donald trump is president and not hillary clinton. >> mr. vice president, it's been great having you on. we really appreciate it. >> thank you very much. >> vice president dan quayle. it's friday so the weekly read count numbers are out. we added two more oil rigs last week. we've added oil rigs nearly every week for the past four months. we're still down about 200 from this time last year. oil down more than 2.5% primarily on peck headlines. u.s. production continue to climb. america has elected a businessman to the highest office in the land. how do america ceos feel about that. cnbc spoke exclusively with a host of business leaders across
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industry. what they said will surprise you and that's straight ahead. wall . at all! no. sir, sir. what went right? everything. we have a brief statement on this non-breach. we're happy to report there's nothing to report. my dad's company wasn't hacked today. cool.
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. some of america's biggest corporate leaders speaking in new york city and the conversations were moderated by our very own andrew ross sorkin. andrew joins us now. i don't think we've heard andrew so many corporate leaders were flat out wrong about something. >> it was a day of surprise as
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it was for so many americans across the country when donald trump won. this was a group of the fortune 500 if you will. the ceos of the fortune 25 and fortune 50 and so many of them in truth they were hillary clinton supporters. i don't think that they expect this. mark ber torch lini said he never imagined this even when it was just down to hillary clinton and donald trump and given his own comments about obamacare, they didn't have a plan b. they actually started working up a plan b the day after the election on this very issue. they expected there would be some sort of obamacare that would return. there was no question there was surprise. lloyd blankfine as you heard said he thought things would go wrong and then go right again. he said he never imagined the snap back would be as quick. i still have some questions myself about bill ackman's
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comments. he said he was completely a donald trump bull and tried to intimate he might have been a bull all along several weeks ago and before that he was clearly a bloomberg man and been a obama supporter. he says he wants to go and visit with trump to talk about fannie mae and freddie mac. >> lots of love. >> i'm not sure exactly what bill ackman's views on donald trump were about. >> probably transactional. >> hey president-elect have you heard of herbalife. >> it's hurting poor people. >> and eric schmidt, the whole view from the valley because so much of the brand that is donald trump is at odds with that. he's made some, of course, critical comments about apple, about amazon, some big questions there.
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we talked to roger goodell. donald trump said if he became president he wanted roger goodell fired. at one point we had, you know, howard schultz from starbucks, talked about kicking starbucks out of trump tower and wants everybody talking about christmas. they had the big controversy about the cups. so you could see what the feelings were and it was fascinating to hear. they are all going to deal. they will figure out a way to deal. >> they have to at this point. you spoke with sheri redstone the vice chair of cbs and viacom. any talk about a merger. >> sheri redstone has never come out and spoke publicly about this. it's been a soap opera and whirlwind of a year relating to cbs and viacom and the redstone family. >> i think it makes sense at this point in time to explore whether it's in the interest of
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both companies to merge again. i think when you look at all the changes taking place in the industry, scale is going to matter. it's going to matter to the consumer. >> she said explore. i think that's a euphemism you need to merge now. if there's a reason why you wouldn't do it, he said i'm too old and too rich. i put that to her and it sounds maybe they will figure out a way to make it more than palatable. >> make it richer. >> richer and younger. >> they got a solution for that. >> andrew, thank you. great stuff. andrew ross sorkin. on deck a friday mystery chart, this stock getting a big boost from that trump win. it's up 27% in five days. any guesses? it's not technology. stick around to find out who it is. plus it is friday than lovely lady may be exactly hat america needs right now.
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put on your dancing shoes, america. "power lunch" back in two. e you? i'm vern, the orange money retirement rabbit from voya. orange money represents the money you put away for retirement. over time, your money could multiply. hello, all of you. get organized at
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before the break we showed you this mystery chart. stock up about 27% this week. it's the second best performer in the s&p 500 behind invidia. we're talk about navient.
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>> there was this idea she would force these businesses to accept students not paying back their loans based on, i don't know, whatever set of criteria and lose some revenue. >> lending standards could ease. >> student law school loans. it's not much. i graduated in '03. i went at night and still paying. it's low rates so it's not like end of the world but just every month you have a reminder why did i go to law school. >> sell those rvs and pay it off. >> waste of time. >> law school. >> yeah. >> not the rv. >> the rv that doesn't work. let's move on. could this person be the person who -- she's got it. she's working it. this mom. we assume she's a mom.
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dancing like no one was watching at wednesday night warriors game. everyone was watching it. warriors called her a legend on their twitter account. >> i love her. >> could we address the sweater also. that's a spectacular sweater. if you're on the radio like 1974 blue with sort of a christmassy nba team. >> nordic sweater. >> except it says nba on the front. >> nba champs. golden state warrior style. >> we have to show that over and over again. fresh comments from warren buffett following donald trump's white house win. why he says the markets are headed onward and upward. power lunch will be right back. you know what i find romantic? a robust annual percentage yield
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that's what i find romantic. this is literally throwing your money away. i think it's over there. that way? yeah, a little further up. what year was that quarter? what year is that one? '98 that's the one. you got it! nothing stops us from doing right by our customers. ally. do it right. let's get out of that water.
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. i'm courtney regan. president obama addressing the annual veterans day observance at arlington national are he
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cemetery. >> we can practice kindness, we can pay it forward, we can volunteer, we can serve, we can respect one another. we can always get each other's backs. that's what veterans day asks all of us to think about. sneefrl the president paid in a wreath laying ceremony at the tomb of the unknown soldier. each year on november 11th at precisely 11:00 a.m. a wreath is laid. it's the last time president obama will lay the wreath. one of the nation's oldest living veterans got a special honor with the 108-year-old world war ii vet attend ee eed veterans day breakfast. amazing. that's your cnbc update that hour. 108 years old. warren buffett telling cnn and the "wall street journal"
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that the wales fargo scandal was a terrible mistake in which a bad incentive system corrupted employees but he has not sold his wells fargo stock. so an interesting revelation there from mr. buffett who also as a clinton support weighed in on the election with poppy harlow. >> stock market will be in higher ten, 20, 30 years from now and would have been with hillary and will be with trump. >> let's head to the nyse. bob pisani is there with the chief equities strategist. job you heard buffett. is that sentiment pervasive? >> stocks will be higher ten years from now. i admire buffett extremely. that falls in statements that's
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true but not very interesting. important thing is we didn't show this here but he talked a lot about trade and defending the benefits of trade. he said the benefits were there but they were very diffuse. you might get less for buying your under wear but not obvious it's due to trade agreements out there. he was much better when he was talking about trade than saying the stock market will be higher ten years from now. >> you have david bianco there. what do you make of the big rally in equities this week. it's fair to say it caught a lot of people by surprise. >> i didn't predict this trump victory but i was positioned for it. we've been advising investors to buy health care stocks and banks that trump would do enough well and republicans would hold off the senate. it's a welcome surprise given the smooth transition ever since the trump victory and we're now counting on tax cuts. so health care, banks benefit from a more friendly political
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climate but if we get the tax cuts and they don't need to be half as big as trump is promising they have a leg upward. >> what do you make of trillions in stocks, trillions come out of the bond market. it feels something like techtonic is happening at the moment. am i right about that? >> you're speaking to changes in market cap values. it's not exactly money moving from one asset class to another but certainly with this expectation, circle stimulus and handing the baton from monetary to circle people are talking about the reflation trade. ten year yields are up above 2%. these policies will promote stronger growth. raise wages and continue to tighten the labor market. the reflation trade could be dangerous. look at oil prices, the strength of the dollar. that commodities and even many industrial companies are dangerous to be buying right now. the expectations are very high but higher rates, stronger
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economy, more politically friendly environment towards banks and health care, big positives for those sectors. >> we had double digit gains this week in banks and pharmaceuticals. there's got to be a limit to the rally and we're starting to see it today. >> in think for the health care sector there's double digit upside from here to the end of the year. that's a sector that's beaten up terribly over the past year and even longer on the idea that the policy risk was too much to bear despite what's been good earnings growth. that sector could eagles trade in the 19, 20 pe. don't under estimate the next couple that that sector could generate. banks. there are times when things are good for them and times when things are bad. now is a good time. i wouldn't overdo it. they participate in further upside to year end. >> a lot of money may have come
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out of bonds but more money has flowed into bonds in the past five years than stocks. what would you advise individual investors to do if they are overweight bonds right now? >> if you're overweight bonds, i would be looking for bond substitutes within the equity universe political domestic bond substitutes that have inflationary pricing power. i point to utilities and with this fall back on riits that's of value. we do think over time those yields rise. not a bond bubble but i think yields rise slowly and the fed will be hiking over the course of the next couple of years. >> fantastic. bob pisani thanks. david bianco thank you as well. two major market movers since donald trump's surprise victory. i'll tell you what they are next.
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two sectors moving higher since trump's victory, infrastructure and railroads. there's a lot of optimism around some big league spending plans around infrastructure which may also benefit railroads who have to carry around all the big stuff. what are the money making opportunities for you? let's find out. catherine thompson is here to talk about infrastructure. and let's look at infrastructure. catherine first mario gabelli joined the team on "squawk box" today and i want you to listen to this. hears what he had to say about the sector. >> we need to clean up our waterways, we need inland waterways, rails. how do you play that? on wednesday morning the infrastructure stocks jumped sharply. >> so it you to actually answer, kathryn mario gabelli's questions how do our viewers and listeners plate. >> best way are the aggregate
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stocks. whether you're going to be building a road or going to be beefing up rails or going to be building out waterways it's going to be the aggregate stocks. those top names include vulcan materials, martin marietta materials. another play head waters. >> up and i talked with spending plan. the fast act. about $305 billion over five years. it looks good. when i look at the returns. summit, stock is up 20% already this week. how confident are you that the gains aren't already baked in in what's been a monstrous couple of days. >> that's a great question. there's really -- we're about to embark potentially on the biggest infrastructure spends the u.s. has seen since the end of world war ii. it's driven by three factors. one the first long term federal highway bill in over a decade. the second which not as many
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people realize and focus on is what we're seeing with state and local communities doing. they get tired of waiting for the fed to step up so they in turn have also passed meaningful infrastructure increases. the third which is the big unknown we have some numbers thrown out post-election could be infrastructure spend from the new president-elect trump. keep in mind that infrastructure was important for both candidates, but, you know, when the rubber hits the road so to speak is when president-elect trump will really lay out. he's currently thrown out a trillion dollars often years. if you look at that relative to the obama stimulus plan back when you and i spoke about eight years ago about this, the obama stimulus plan was a little over $800 billion over a five to six year time period. so the trump plan from a dollar standpoint may not be too far off from a dollar standpoint. >> before we run out of time,
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summit, aztec, martin marie eat gentleman, headwaters. they help you build roads. who is headwaters and why is that stock a good buy? >> headwaters is a company that is a substitute for cement. we're quickly running out of capacity. essentially 100% capacity utilization. fly ash is less expensive but good product to displace cement. >> headwaters. there you go. concise. hw the ticker. kathryn thompson, appreciate it. see you soon. >> thank you. >> now let's talk railroads. a much of the rail stocks rallied. one name fell hard kansas city southern. half of its business comes from mexico. the stock plunging 10% the day after the election. jim, great to have you with us. i want to set aside kansas city
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southern for a moment. transports hit agnew year ing h year-to-date high. whether it's a favorable stance towards the energy industries or infrastructure spending what do you think could be the biggest boost for the rails in general? >> the near term impact for the rails immediately after the athletic was a better regulatory environment for the coal industry. coal is half of the generator for rails. that sector has been decimated by lower prices. >> that has nothing to do with regulatory. absolutely. the stock has to rally on a better environment for coal possibly but the fundamentals don't support higher volumes for the long run. still looking at oil production in the u.s. growing. you talked earlier on the show about riits rising.
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natural gas prices will be low for years to come and impact coal pricing. >> let's say the fundamentals for the energy industry keep production low and keep prices low so therefore that's not a net benefit for the rails. let's take a look at the other piece of the picture and that's infrastructure. doesn't this material need to be transported. couldn't that be the general economic activity could you have a growth, can that benefit the rails in terms of getting inventory to retailers, let's say. >> absolutely to the extent we get a gdp multiplier from an economy that's improving from doing more manufacturing throughout the u.s. from infrastructure spending, like you said those products need to be moved throughout the u.s. and that will help volumes in the long run. that's an impact -- too early to tell how that will play out. nothing has been enacted. we're months away from the inauguration. that will be something playing out over a much longer time. investors are reacting now. >> kansas city southern, a lot of north/south lines into mexico, auto parts, et cetera
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and also under question if we revisit nafta. should there be a discount associated with this name? >> mexico is the one area where volumes are improving so if you looked -- if trump hadn't won that would be a good stock to own. the stock got a re-valuation by market after election and it's appropriate to be re-valued right now. >> in terms of the values what's the growth in volumes being driven by in mexico. it is related to the auto industry or truly -- this is what i heard mexican beer? >> auto and auto parts. mexican economy is growing faster than the u.s.. that's not is going to continue. hopefully we'll get u.s. gdp up over the next several years. but more importantly is the increase regulatory risk associated with mexico, tariffs, exports, renegotiations for nafta. >> you still got to buy canadian national. >> canada also an area that's a little bit stronger than the
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u.s. canadian pacific and canadian national two rails that operate more efficiently. more profitable. they are going to continue to be so. we think they are a better place to play right now. >> jim thanks for your thoughts. let's get a market flash. >> donald trump victory continues to up end emerging markets now on track for their worst week since may of 2016 nearly a 4% decline. goldman sachs said the key down side risk for the broader emerging market space is how far the more protectionist elements in mr. trump's campaign rhetoric are acted upon. u.s. fed policy a factor and yields rising in the u.s. and accelerating the selloff we're seeing in emerging market bonds as well. one made in america brand dealing with a big backlash right now for supporting donald trump after the election. that story is next.
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for our children to live. together, we're building a better california. i've spent my life planting a size-six, non-slip shoe into that door. on this side, i want my customers to relax and enjoy themselves. but these days it's phones before forks. they want wifi out here. but behind that door, i need a private connection for my business. wifi pro from comcast business. public wifi for your customers. private wifi for your business. strong and secure. good for a door. and a network. comcast business. built for security. built for business. >> one made in america brand dealing with a big backlash. sneaker maker new balance. they are supporting donald trump after election and number of the company's customers are lashing out. >> reporter: that's right. new balance has been a long time
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opponent of the transpacific partnership and now in response there's some angry customer whose are lashing out at the company after the company publicly supported donald trump's trade policies after the election. as a result southeast customers are posting videos on social media showing them burning or tossing away their new balance shoes this after a company spokesman told the "wall street journal" the obama administration turned a deaf ear to us and frankly with president-elect trump we feel things will move in the right direction. privately held company's decision to support trump's policies is, in fact, rooted in trump's opposition to the transpacific partnership agreement. the boston based agreement has opposed the deal for endangering sales for shoes in favor of competitors that rely more on overseas production. in a statement to cnbc the company says new balance has a unique perspective on trade in that we want to make shoes in the united states not more shoes in the united states not less.
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new balance publicly supported the trade positions of hillary clinton, bernie sanders and donald trump prior to election day that focused on american manufacturing job creation. and we don't support them today. nike which has a morrow bust operations overseas supports the tpp. back to you. >> so what kind of tight rope does corporate america need to walk right now in the days following the bruising battle for the white house? carter murray is ceo is of scfb global. and a branding expert of dean crutchfield. in a polarizing, divisive election you'll see these kinds of conversations, these kinds of protests taking place. what would your advice be to a company unlike new balance that doesn't manufacture much in the united states, let's take a clothing company, a shoe
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company, an electronics company like apple, a furniture company that does all of its sourcing overseas. what do you advise them? >> i would say it's a bad affiliation and in this case you're looking at brand i'm affiliated to my consumers not to my brand not a political organization. brands are about unifying people, bringing people together not alienating. that's hat new balance has done. >> the new president is critical of those. apple bring those jobs back here. you're advising apple. >> most of our client are mainstream clients, clients that have to speak across the tight ropes of both divides. what we advise them what i talked about on the show to have a purpose. to have things that unite people. find the insights that unite people not what divides. in the last two days that's what i think people are grappling with both in society but our clients as brands is to be that it's not about trying to
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encourage the divide but to find what you now i wants us. >> it sounds like both of you would say to corporations stay out of politics. there's no way to wade into politics to back a candidate without dividing or being divisive in some ways. >> look at coke industries they manage their brands very well without anyone burning them. they are clear about the position they take. it's a strategy. who you are as a brand absolutely key. that's what brand is about. it's not about marketing or investor relations. it's what you believe and why should i care and clearly we're seeing new balance there's people who really care. >> i was going to say if they had just said we don't want the tpp to happen and left out the fact that that happens to be donald trump's position they would have gotten away cleanly? >> it would have been a smoother, easier kind of transition to have made that kind of statement. but they made that statement because they are proiftd. this is what happens. people bounce back and say i don't agree with you. you have to be very clear the
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line you take. >> to be clear hillary clinton was against tpp after she was for it. >> to gain votes she was influenced bipartisan that decision. >> let's talk about your company on the morning after. i'm told that your hr person asked you to send a note to your employees. to say what? what did you do? >> my partner is very insightful into the tone of what's going on in the company and we spoke collectively about should we send a note out because we had -- we have several thousand employees in the united states and people in our offices who were crying and people in our offices who were excited about the change that would come to america and our job is to make sure we have employees that feel it's an environment for them and we had very different emotions going through our office. it's the same that we apply to our brands and our clients and to ourselves.
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sometimes we talk about silence as a strategy. we have to respect -- >> were you silent? >> i decided that whatever i said could be misconstrued as the wrong way. if you take it to reaffirm your values it could be seen to be siding with clinton. or with trump. and i think at this time it's important to respect the democratic process. there are hundreds of millions of people around the world who don't have a voice. and i think what we need to do as marketers and also as ceos is understand why there was such an angry vote and why people felt the last need to go against the establishment. >> especially on veterans day today. we'll still have protests and it's veterans day. if you're going to protest america stinks the fact you can protest means america doesn't really stink. so i brought in -- there's nasty -- i brought in my new
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balance sneakers. these things are old. you open it up. it says made in boston, massachusetts. people are burning them. are you protesting trump or you are protesting what? american jobs. a company struggling to continue to employ people in the united states. only athletic shoemaker in the u.s. still making shoes here. what are people saying? >> there's brands usa inside the country but brands usa outside the country and i think outside the country they are looking it as brand trump. he's an exclusive american brand and people are perceiving brand america and associating that with him. >> does this hurt new balance around the world. could someone in china or england say you know what america voted against us and i'm not going to buy an american made product. >> it will influence people's decisions on what they purchase the next time they do it. because of the association. >> we talked i think a couple of weeks ago about trump's own brand here. i think it was you guys.
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whether the tenor of his campaign hurt his brand. now he's president. does it help his brand? >> absolutely. he's in the top spot. he's the man. sofrg goes well. but i still think there's an issue for brands usa. >> there will still be -- >> because of donald trump. >> there will still be companies, still be trade associations that will say i don't want to have my event at a trump property. i'm not going to the doral. then others who will say, bet your, you know what, i'm going to the doral because i want to speak -- i want to express my support of the president. >> let's take a step back too because we're talking about made in america and it's been linked directly to trump. brand usa is 250 years old with a strong track record, you know, as achero brand for the free world as having a lot of optimism and strong track record. i think tying brand trump to brand usa, brand usa is bigger
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than any one president and i think people need to find optimism in that and people need to realize that brand usa has strong values that will endure beyond any one president. he'll influence it but not dictate it. >> you think it's a very negative impact for donald trump on brand usa? >> i think it doesn't do brand usa any favors right now because we don't know what his plan is. he said some serious things. his rhetoric has been hurtful to america and hurtful abroad. we have to see what plan he's putting in place to resurrect the country. but any country that says its interest is a self-interest. it's equivalent of trump saying i have no interest apart from winning the election. >> all the world is about self-interests. i don't buy that at all. >> i kind of agree with you on that. on foreign policy that's a different matter, i think. we got to leave it.
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interesting conversation. good to see you. decent, thanks. >> i can take your shoes? >> you don't want to touch those. still ahead honesty is the best policy especially on an earnings call. what's pushing disney higher now? we have that story when "power lunch" returns.
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. welcome back to "power lunch". we kick things off with breaking news on donald trump's presidential transition. let's get to cnbc eamon javers in washington. >> reporter: nbc news has confirmed that vice president elect mike pence is taking over the donald trump transition effort the presidency. that's job he takes from chris christie the new jersey governor. mike pence deep connections in washington, d.c., a veteran of capitol hill and somebody who has seen knowing his way around town. an asset that donald trump will desperately need in the coming days as he fills out his campaign team. the president-elect tweeting out earlier today decisions are soon to come on who will be running the trump administration. this is a sign that perhaps chris christie is being moved out of consideration for one of those top jobs. we'll have to wait and see. we're waiting on any sense who donald trump's chief of staff might be.
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who the secretary of state might be. secretary of treasury. secretary of defense. all those top jobs unfilled as of now. there's lists circulating, names being floated and trial balloons shot down here in washington. it's the parlor game we see every time we have a president-elect. for right now mike pence is taking over the transition effort from chris christie. >> this as chris christie is done. he's the easoast. he won't get a job in the trump administration or being moved out so he can be more fully considered and vetted for attorney general or chief of staff, two posts that have been associated with him. >> reporter: i don't have any direct reporting on that, tyler. i can tell you there are folks in washington who think that christie is being put to the side for now and possibly part of a second wave of trump administration appointees in a later year but this might
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indicate he's being pushed to the side. i'm just passing along scuttlebutt that a lot of people are circulating here. >> scuttlebutt in washington. that's hard to believe. >> bridgegate, was that talked about as a factor? we had a trial happen since, you know, we saw chris christie out in the public eye. >> reporter: think of it this way. if you're donald trump and taking people on board to your new administration you have huge interest and so does the country in making sure the administration goes well. you don't necessarily want to take on board anybody with any question marks next to their name in terms of what might happen in coming months or over the next year or so. i think you have to be absolutely squeaky clean in terms of vetting. they will look at these people and make sure they can do the job and do it for a long time. >> there's some other news we
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want to get to. crossing right now the president of the european commission is making some statements saying that donald trump's election poses risks for eu-u.s. relations. he says trump's statement on security and na to may have consequences. and this one everyone will love. we'll have to teach trump what europe is and how it works. he's part of the establishment and bureaucracy in brussels, people who have come under intense fire in brexit and everything else in europe. so this will be a very interesting repercussions to watch. they are going to learn him. >> they are going to learn him. steve liesman is here. we want to talk about bonds or talk about this. >> whatever you prefer. >> it's your show marks shell. >> i think bonds. >> i want to say one thing. it's unfortunate choice of
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words. it's probably the wrong choice of words. but let me just -- >> on purpose he didn't make a mistake. this isn't a translation. this is the kind of person he is. >> i think so. i'll say there's a lot of concern in europe. and i want to make a point that i think i may have made on this show is we forgot one of the reasons for economic union is because of security reasons. we join together economically so we wouldn't shoot and kill each other. we forgot about that in our now sort of moving apart. there's a reason why trade agreements have cost sometimes to one side because that side values the security on that side. so one of the things that we're going to have to remember, i hope, is that some of these trade agreements have other reasons other than financial part of it. >> part of what the markets are telling us if you look at the 15% decline in the mexico peso, drops in emerging markets there's karen about a trump
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presidency. >> mexican peso yes. but rising interest rates why would you buy emerging markets. >> i haven't been a fan of emerging markets. if you deacon struck the market's behavior you can see what wall street is expecting of a trump presidency which is big tax cuts, deregulation that's showing up in pharma, financials, banks. the higher interest rates because more spending. >> i want to weigh in on something. you guys, if i can wait a minute. go to dot-com and read my story. go to the point i made europe and japan could learn a lesson from the united states here. if, indeed, there's a big windfall to the economy from deregulation, we know that both europe and japan more so than the united states have low-hanging fruit in the firm of points of gdp to gain from reforming their systems. okay. so if you see what stan fisher
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said today, he said to the trump administration, bring it on. we have been asking for this for years since the financial crisis and so what that does is it changes the calculus for the fed for growth and a new president is going to be -- >> what? a partner. >> help from the fiscal side. deregulatory. >> let's talk about bonds and listen to what gundlach said earlier on cnbc. >> we expect to go above 2, 35 basis point since the election is not that surprising given the narrative that's developed about the trump victory. so i do think this rate rise is about 80% through, at least this leg of it. >> you're shaking your head rapidly. >> this leg of it. i would say the bottom has been put in interest rates. if you get massive circle stimulus, if you go back to deregulation. donald trump said on the campaign trail and i think we
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ought to take him apartment his word for a lot of things he said he would roll back 70% of fed regulations. that means 14,000 could be rolled back. first and foremost fiduciary responsibility. defunding the consumer financial protection bureau. >> how high could interest rates go? >> i don't know. >> we didn't see the bottoming prior to the trump? >> certainly. bottoming process. >> i'm confused. >> absolutely. >> wasn't the bottom in. you knew that going into the election. >> i didn't believe fit the fed would accelerate the pace of rate increases with economy still being dead and no circle stimulus help. you could question whether rates go up or down. if you get fiscal stimulus and a tax cut -- >> 6 trillion. you're talking about yes a bottom in interest rates and tighter monetary policy.
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>> rick santelli is joining us. the tlt a lot of people don't buy bonds directly. it's down 7% this week the. . i cannot remember a week, many melissa or michele or tyler can where the tlt fell that much. what are people saying on the floor at the cme. where is the money going? >> reporter: well i think, obviously, there's some rotation in the equity markets. but i also think there's this notion in general that a lot of the dynamics of why interest rates started to move up and i think it was michele that brought it up. the bottom was in long before the election. the bottom was in july. and i think from the standpoint of treasuries things were already happening with regard to the efficacy of central bank policy misallocation of capital. worry was in the put rates up. the new reason rates are up is wonderful. listen, forget everything in the past. stan fisher keep thinking and
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talk. steve liesman you're spot on. the fed should really -- >> hold on. >> it's true. >> reporter: it's true. this is growth. this is the expectation of growth because of low-hanging fruit. if i had a dollar for every guest in the last six years who is whining about dodd-frank and growth -- we had one guest say we are inundated overflowing with red tape. it is low fruit. both houses in the executive branch -- >> if you had a dollar to that you had to keep 100% of it in reserve at the central bank and couldn't do anything with it. >> that's right. >> which is good insight. >> i would like a dollar for every dollar that each of our guests had. >> i want to be clear i hope vick right that this is a growth movement but you don't know that. you don't know there's two other
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aspect to its. there was a simple inflation aspect to it. secondly a supply aspect. >> growth is not a horrible thing. inflation predicated on stagnation is a horrible thing. >> i want to go back to larry kudlow's words. most people's view of growth. growth is not inflationary. when you do growth you expand supply and therefore you do not necessarily create pricing pressure. if you think larry is wrong about that, it's larry kudlow at you know what. >> reporter: i'm not saying who is right or wrong. when rates were going down in january because we were linked at the hip about the crazy programs how europe was going negative -- >> i want to underline something that you brought up which was the difference between what the europeans can learn from the united states because european rates are rising and it's much more dangerous for them because they have so much debt. you and i have sat through many ecb meetings and listen to mario
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draghi begging for the countries to deregulate. to do all kinds of things to help and they don't do it. >> right. but, look, michele, let's be careful about something. one of the reasons why we have a rather extreme financial regulatory scheme in place is because we just went through a rather traumatic financial crisis. >> i'm talking about -- >> when the government forced rates on people who couldn't afford it. let's not whine about the prices. they have raw meat for all the banks, fannie mae, credit was cheaper. they created a horrible sausage factory. . >> i have said for a very long time i thought dodd-frank went too far but i don't think that all of it is too far. i think some higher levels of capital -- >> you need regulation, yes. >> liquidity regulations are
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worthwhile. >> i need to bring out the old steel because i'm in the weed. i need to bring out the weed whacker. rick i want to look forward here. alan greenspan, remember him. a couple of days ago he said he to show ug9 year yields would go back up to 5%. do you see that happening? >> what time frame? >> maybe 2070. i don't see it any time soon. i think if everything is picture perfect. >> i will die eventually. i would think that you start -- you have to start respecting big turns in markets and you don't -- >> that's happening right now isn't it? >> copper is up enormously and been up for 15 straight days. if there's a massive reinflation trade being put out and the market says there's fiscal stimulus in the united states and tighter central bank policy it will happen here, europe and japan and other places as well. we no longer have $13 trillion of sovereign debt. it's maybe 10.5 or 11 trillion.
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the market is -- >> if we see 5% ten year oh, my god it will be radioactive for a century. >> there's almost no scenario with the new president under which the outlook for the federal reserve and interest rates is not different than it was on tuesday. >> that's true. >> could mean more rate hikes, could mean faster rate hikes. if we get the inflation and get the growth then all of those things will happen. what you thought was good on tuesday for your fed puts and calls is not good on friday today. >> we've had a lot of promises rick about spending on infrastructure. we talked about it earlier. if bond yields continue to back up does that scuttle the infrastructure plan that would probably largely be debt funded? >> reporter: you know on infrastructure i've always had the same feeling. i don't look for a multiplier and growth effect from infrastructure but i think if actual infrastructure dollars created infrastructure we can point to new power grid, new air
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controlling system, new airport, that that's a wonderful thing and i don't think taxpayers would mind being taxed a little bit more. >> infrastructure under a trump administration will be funded privately. that will be a big repatriation. >> we got four years at least to discuss this, right? >> have a good weekend, rick. >> cheers. >> reporter: steve, i'm telling you, you never know. there will be some moments here. i can see it. getting back to real markets. >> every day we deliver the economic markets, bond reports. i agree with you. >> gentlemen have a great weekend. thanks very much. let's go on to something lighter. disney. >> missing on earnings. so why is the stock up today? we'll have that answer on "power lunch" straight ahead.
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my name is erick varela. i'm a substation electrician with pg&e. when i was 17 years old, signed up for the united states army and i started serving and i now get to serve the customers of pg&e. i get to help other families. and that's what it's all about. when i came back from iraq, couldn't find work. then i found pg&e's power pathway program. here at pg&e i'm successful living in eureka with our two beautiful kids with a brand new career all because of the power pathway program. if you are a veteran, go to and hopefully your life will change like mine did. together, we're building a better california.
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disney missed on earns and revenue due to weakness. bob isner addressed this issue. >> we feel good about espn. we're dealing with naerm issuea issues. we thing long term prospects for
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espn just fine. >> disney stock super on those comments. up 3%. joining us is the senior research analyst at pivotal research group. he downgraded disney to a hold. great to have you with us. so bob says he's bullish on espn. did you get any data on the conference call about the rate of subscriber loss that would, in fact, confirm disney's assertion that the nielsen numbers were incorrect. >> this has been a very laughab laughable dispute in some ways. they indicated negative 2% impact on affiliate fees from pure subscribers. does that mean negative 2% versus nielsen's negative 3? that's probably the scale of the difference between nielsen and espn's numbers. it's never been the case that we took the negative 3 at face value necessarily from nielsen,
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but it was not going to be that far from it either and it sounds like it probably is negative. discovery said they are negative too. viacom is down about that much. so, it's kind of a silly dispute. >> sounds like you're saying we all knew there was subscriber loss within the ballpark of what nielsen was saying, twin ballpark of what espn was putting forth. if we knew that then why are you downgrading the stock at this point. >> it's valuation call. they provide a lot of and good on them for giving us the heads up on the december quarter, but there's much more negativity i thought around this coming quarter than i anticipated and for the rest of the year. consumer products segment down 20%, they are estimating operating income a whole bunch of head winds on the parks division in the united states because of hurricane. they talked about terrible advertising conditions for espn
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this quarter, both because of fewer bowl games but also underlying weakness at spend. all a forecast or an estimate that the third quarter for total advertising dehe islerrase lerh islerrated. >> it's about disney and espn and apply eventually tomb, us at cnbc, cbs. i use apple tv in addition to my comcast. if i watch that game they go commercial and sometimes i just get it stay tuned. there's no commercial there or goes to black for two minutes and then comes up. is there a way now because is this future, i guess, is there a way to figure out how much if anything disney, espn, nbc, anybody else is making from these apps on apple tv and these other online ways to view because there doesn't seem to be a lot of advertising. >> there's instances where there's not a lot of advertising
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on certain apps. those are solvable problems. in other instances some other similar apps and similar sites with broadcast tv type content have too much advertising. in other words they don't optimize their inventory very well and you see too much advertising in some cases. here's the thing. supply does not drive demand. there's some economists who can argue one way or the other in a macro sense when it comes to advertising world because you change the supply doesn't change the underlying demands for advertising when it comes to national tv premium video based advertising is a low single digit growth business. it is what is it. >> thank you. all shopping today in the good and bad and ugly. whether you need clothes, purse or big screen tv. all there next on "power lunch".
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welcome back to cnbc. donald. j. trump's office put out a statement confirming that vice
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president-elect mike pennsylvania will serve as chairman of the presidential transition team which used to be chris christie. they list vice chair including chris christie, dr. ben carson former speaker of the house newt gingrich along with mike flynn, former new york city mayor rudy giuliani and u.s. senator jeff sessions as well. there's a very, very long list. we'll have eamon javers join us in a few minutes as he takes a look at it. >> meantime, time now for the good, bad and ugly in today's trade. they are all retailers. first to the good, nordstrom revenue beast expectations. nordstrom set to end up 15%. to the bad. best buy. shares of that retailer are down. you better brace for a down beat fourth quarter forecast in part because of discounts that could cut into margins. ugly day although not much uglier than best buy for michael
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kors. shares down. the problem guidance that simply didn't feel very luxurious, tyler to most investors. >> thank you. one thing we learned from the election the economy in the rust belt states isn't working. people don't think it is. how can we fix that. coming up. oil down 2.5%. we'll get the closing trade next on "power lunch". where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley.
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built for speed. built for business. let's get you more on president-elect trump's transition team. eamon javers in washington with the details. >> reporter: the president-elect's office put out a press release detailing all of the new players on the donald trump transition team. lot of them will be familiar faces to you from the campaign trail but are now taking on senior roles in the transition itself. let me give you a couple of the executive committee vice chairs that they just named. mike pence, of course will be chairman of the presidential transition team. dr. ben carson, chris christie, newt gingrich, lieutenant general michael flynn, rudy giuliani and u.s. senator jeff sessions all join the executive committee as vice chairs. we have a list here of other members of the executive committee. i won't give you all of the names but a couple to watch for
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here, jared curb near, donald trump's son-in-law being named, rebecca mercer daughter of robert mercer who was a key activist in conservative circles and fundraising circles is named. peter teal. most of the trump children or fully adult children dornld j. donald j. trump and ivanka trump, a lot of new names coming on board. >> is kellyanne conway's name on there? >> yes. senior leadership for the staff. they say kellyanne conway is being named as a senior adviser. also david bosse as deputy executive the director. steven miller, national policy director. >> this is a heck of a
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committee. >> everybody gets to say they were part of the transition team. >> everybody gets a trophy. >> reporter: read between the lines. look the u.s. government is enormous and they are going to need a lot of people. i think if you look at these executive committee vice chairs think of those as people who might be cabinet secretaries. the newt gingrich, rudy giuliani types. down lower the executive committee i think with the exception maybe of the trump family think of the executive committee as maybe key white house staffers going forward and then you might look at the way this is shaking out with kellyanne conway, david bosse. those might be your white house teams. >> being part of this team is making through the first-round of a job interview. you're going to get something probably. >> reporter: good way to think of it. all of these people are being vetted. all of them ambitious. wanting to serve.
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wanting to be close to donald trump for this huge venture that's about to happen. >> can i ask a dumb question and i'm asking for a friend. what is the primary role of the transition team? what will be their one or two biggest decisions that they got to make? >> reporter: the biggest decision is naming the people who will be in the administration. vetting all the candidates. doing all the background research, finding the right people. looking at their previous experience, their ideology what they said about donald trump over the past year or so. all of that will be important. also the transition folks are reaching out to the current obama administration counterparts and this often gets overlooked. they have to go in and find out what's going on inside the department of education, inside the department of justice, department of justice transition team, for example, will have to go and sit down with attorney general loretta lynch and she's going to have to brief them on all the big cases that's pending, they have to talk to the fbi similarly and get a law enforcement brief. so they have to get a sense of what's going on inside these
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agencies that's not public right now so they know they can put right people in place to run those agencies. >> they got make nice basically. protests going on in the country but at the highest level of politics these men and women will get-together and work together for america even if they have different ideology views they will come together and look each other in the eye and make some decisions for the benefit of the country. >> reporter: the tone success set from the top. you saw the hand shake between donald trump and barack obama. that was something that not a lot of us ever expected to see but we saw it. barack obama is telling his team look you got to cooperate with this transition, we have to have a faceful seamless transfer of power. donald trump said it was a great honor to be there in the white house with president obama. clearly sending a signal to his team we have to cooperate and be respectful and learn a lot about what we're dealing with here. >> eamon javers, thank you. two of the biggest frishs the left and right of america is one discussed and dislocation
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from d.c. or at d.c. and two wealth inequality. i wrote up a little plan to help both. read it in full at powerlun d.c. is so rich so spread the wealth around. there's 3 million federal workers stuffed in around where you came from 70 square mile area inside the beltway. my view is this. why not move five or ten percent of those employees around the country to different spots. more from our labor economist. don i wrote this little plan mostly tongue in cheek. i may or may not have had some wine before die. as somebody who studies the rust belt economies what is the impact having five or 10,000 irs workers moved to akron ohio,
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or going to jackson, mississippi. >> i think that you hit on something that you didn't mention but there's something that's really important, implicit in your point is that when you have all of the federal government workers located in washington, d.c., their vision becomes very myopic. they only see the economy through washington, d.c. eyes, which is an economy that's sort fort worth the highly educated workforce, very successful, very high income, and i think that, you know, if you did spread out washington, d.c. a little bit more, you might see a vision of what's going on in middle america and then maybe -- >> michele doesn't like. >> no. they are going to make us an core from. you can say the same thing about networks. >> you could say that about media. that's part of the problem. i meant this not as a joke. i know it will never happened. i call it my semi-insane plan.
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now you can be anywhere and it seems weird that as a kid that grew up in california the federal government was literally 3,000 miles from my home. hit no impact on my life. could have been narnia. >> what you're right about they are writing regulations that work in washington, d.c. but don't work in middle america like the recent department of labor regulations on overtime rules. i mean somebody making 35 or 40,000 as a manager in suburbs of washington, d.c., could you say that they need to get paid for working overtime but if that 35 or $40,000 manager in a rural area or small town in the united states they are getting paid pretty good wages for that community and imposing these overtime rules on the community that the rural community that just doesn't work. that just adds more complication and more regulation to their
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operation and they may not be able to do that and continue to operate that local retail store or whatever. so i think you hit on something that inadvertently that really is important, whether tongue in cheek or not. >> we all know today nothing exists without a hash tag. i promot promote #makeamericagreatagain. >> there's agriculture department in iowa. >> smd a higher percentage of millionaires than any other state in the country. >> is it because they work in the ancillary services like technology and defense. >> defense. all four defense contractors used to be based in l.a. orb missouri. everybody has moved -- they never had -- >> they didn't call for regulatory capture. i don't think the department of agriculture should exist at all. just go away. >> that's a segment for monday.
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a deer smashes through the window of an american eagle outfitter store in stillwater, oklahoma. we don't know how he got in there. he was going from the inside out. >> we know how he got out. >> we know how he got out. american eagle stock not being affected. look at that. >> they are so cute and yet they are so powerful. >> they are powerful and dangerous. >> yep. >> folks, take it away. >> why is he inside? trying on sweaters. >> you know that mannequin trend going in a round. maybe the deer was mannequining. they moved it over and then realized. >> psych. remember that. >> time for street talk.
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bullish activity on nvidia. 60% growth in the auto segment. barclays upgrading to an equal weight from an underweight which seems a bit late given the stock is up 160% year-to-date. raymond james raising its price target to $90. no signs of slowing momentum. >> they had an underweight on it. >> until today. >> are we doing the worst call of the year at the end of the year. >> that's why i called out. >> second stock, deckers, upgrading to it a buy. raises the target 206. solid financial base and moving in a new strategic direction. hardly a weather call. projected colder weather. maybe you didn't need a new pair of uggs.
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new ceo that took over in may. the target of 68 implies about less than this morning, up 11%. >> sweet spot for uggs. third stock here kohls and yesterday we were covering the massive pop in the stock. higher by 5%. mkm reduced its fair value of 50 bucks. saying eps was higher because of share buy back. questioning quality earnings. pointing out gross margin was weaker than expected. and also saying traffic dehe islerrated further. handling and shing because of e commerce efforts will offset that. >> look at that chart. retailer, not many falls, wisconsin retailer trading like a tech stock. your small cap call of the day, microsemi corp.
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founded in 1960. susquehanna investment said they are confused why this high quali quality semiconductor stock is trading at a low multiple. they mention the new president in this note. they say if we get an increase in defense spending, mscc is the ticker. not a huge upside left on this name. in this wild market i'm not sure we'll find one is that. they love this market. >> the philly index is up. helping technology which has sat out the trump rally. >> speaking of, a wild week for most stocks. many sectors seeing big time moves. the question now is what sector if any do you want to own going into the end of the year. let's ask our trading nation team. stacy, i'll begin with you. you know the point and i can go through the stats like 25% of
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the s&p rose 10% or more this week. stocks gone wild. is there anything left in the gas tank? >> you're right. a lot of different parts were moving here. what were the parts that were benefiting in the health care space. financials obviously fan favorites particularly on the regional levels. a product lightning kre. everybody is moving out of your yield plays. moving out of utilities. what still likely has potential or more importantly where do we see money continuing to move and where are the options still somewhat bullish. we say that's in the biotech sector. so we continue to see flows i would label more bullish suggesting there's more upside particularly since they have been underperformers. >> david, biotech do you agree with stacy or a different sector of the economy still having some pull. >> i love biotech, obviously.
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there's a massive sentiment shift here. you need to get the long institution here first to jump on board and get back, their feedback and buy stock. that could take a little time. the regional banks are something to keep an eye on to the end of the year. there's more upside on the regional banks than in biotech and larger banks. i know that our analysts here put out a great piece and talked about dodd-frank and the fact that people expect radical changes to it. you probably won't get radical dhiengts. the cfpb will have some sort of amendments that will be favorable for regional banks. regional banks is absolutely something to take a look at. they've had a big run. if there is any slight type pull back there's a good opportunity here until year end. >> many of them are up 20% this week. they are trading like biotech's. thank you both very much. for more trading nation head
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to our website. coming up, brian, we've seen emerging markets selloff. what about frontier markets. is there money to be made in countries like ethiopia and mongolia. >> announcer: now the latest from trading nation.
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call today. comcast business. built for business. let's look at mike pence speaking at a veteran's day in indiana. the big news is that he will head up donald trump's transition team cameras catching up with rudy jewgiuliani. >> no expectation. all i do is give my advice. donald trump has been my friend for 28 years. all of my work has been out of
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loyalty and friendship to him. i can see already how he is going to be a great president and i thought i could play a small role. >> tell us what job you would really like. we'll find out. investors are scrambling to figure out what a trump presidency means for the portfolios and money. according to our next guest trump could be good news for one particular investment, frontier markets. joining us now is -- he has half a billion dollars allocated. developing countries with markets that are less establishing than emerging markets. we have seen emerging markets sell off because interest rates have been rising, because of concerns about protectionism. why wouldn't that be true for frontier markets? >> i am actually quite excited
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about what a trump administration could mean for frontier markets which i think is not the consensus. frontier markets are -- you are looking at private investment options. not very often public equities. they are not bouncing around because the correlations tend to be -- these are markets that are going based on intrinsic factors. they have consumption. it's not linked as much as you might imagine to the broader economic environment. >> that's not as bad. why would trump make it good? >> here is the thing i find interesting. you know the economy is growing based on intrinsic factors the businesses are going to do well. what is the risk? the under writing on political risk is the toughest bit for us. u.s. foreign policy is hugely influential in these regions of these countries. i have to say under the obama
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administration there has been a lack of clarity as to u.s. foreign policy. it made it tough to know what u.s. positioning on ethiopia is going to be. it has gone all different ways. and trump administration you are going to see clarity. you might not like it. >> in the world in general? >> i think in general because the way he has conducted his campaign i believe the way he conducts his presidency in terms of simple clarity on what is important and what isn't. the other issue i think that is very compelling china is going to face tough i don't know if sanctions is the right word. it is not the same for american businesses to manufacture because whether it is tariffs the trump administration will be changing the game. where do the main factions go? they go to ethiopia.
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ivanka trump has shoes. the chinese company announced who makes her shoes that they are moving to ethiopia. >> to manufacture ivanka trump shoes. >> the u.s. 200 years ago we stole jobs from the uk. mexico came in and china stole jobs from mexico. now china's wages are going up. you are saying sri lanka. >> a great case for manufacturing, as well. it would be great for jobs to come back. some jobs will. mostly what is going to happen is that the manufacturers who are already struggling because of the cost in places like china, they are looking for new markets that have low labor, low energy costs. ethiopia, sri lanka, huge opportunity. this third piece -- so that's a
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great question. i think a lot of folks want to find some public vehicle to get access to these markets and unfortunately it doesn't generally exist. that's why for us we do exclusively private equity, some debt. these markets are growing but you can't expect to have liquidity. so there it is. do you know donald trump knows georgia. he has been on the ground. he was going to put up a trump tower. i think we are going to have an administration that actually understandathize world far better than what the majority are saying. >> thanks so much. >> great to be with you. check please is next and you know someone is going to pick the dancing warriors fan. >> are you going to do it? ♪
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check please. my check please is what is going on in the bond market? is this the week that we realize that the whole world woke up to a tectonic shift? interest rates have gone down, straight down for more than 20 years. are we now about to see a turn? >> more than a trillion dollars has been wiped out of global
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bond markets this week. this is a major shift that we are watching. in terms of the rally this week the trump rally if you want to call it that take a look at the performance of technology. take a look at facebook, amazon, netflix, google and apple. none of them had gains on the week. >> the dow did. let's take a look at a one-week chart. here is a look at one week on the dow up 5% over the past week even though we are in the red by just a little bit today. that falls in the category of who would have thunk. >> my check please is two fold. now you know why we sit. new balance you can dislike trump or protest. they are just making shoes in america and want to keep making shoes in america. we should support that.
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>> why are we at the wall? because after a long week we should all cut loose and dance like the golden state warriors woman. let's do it. come on. >> great weekend. thanks for watching. we can be just as fun. >> absolutely. you wait. we have two hours to go. >> welcome to "closing bell." i'm kelly evans at the new york stock exchange. >> i'm bill griffith t. was an incredible week for american politics, for the stock market. some call it the trump rally. i prefer to call it the republican sweep rally. >> how about state legislators. >> and around the country. the market


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