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tv   Power Lunch  CNBC  November 21, 2016 1:00pm-3:01pm EST

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>> if jamie dimon sticks with jpmorgan instead of the administration, all the more reason to hold it. the other one, whiting petroleum, wll, like that one. >> we got some time here. >> that's "the halftime report." i'll see you on "power lunch." starts right now. yes you will, melissa. we'll see you in a bit. i'm brian sullivan. the defending champ. here's what's on the menu. france turning to the right. a huge political shift in paris. might impact your money. we'll go live to france in just a moment. plus, latest on the great transition, team trump starts to take shape. yo, adrian. america's favorite underdog celebrating a big milestone today. put your dukes up. "power lunch" starts right now.
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hi, everybody. welcome to "power lunch." i'm tyler mathisen. here is what is happening at this hour. the record run on wall street rolls on. the dow, the nasdaq, the s&p 500 all, all of them hitting all time highs. we're also seeing a big move in oil, crude rallying at this hour by about 4%. highs not seen in quite some time there, 4770 is the quote now. we have got a lot more on all of these market moves straight ahead. sunoco acquiring energy transfer partners in an all stock deal expected to close early next year. and tesla says its acquisition of solar city is now officially done. we got a busy two hours coming your way. we kick it off with michelle caruso-cabrera live in paris for us. hi, michelle. >> we're here to interview marie la pen, running for president of france, elections coming up in april. she sounded a lot like donald trump long before donald trump ever ran for president, especially when it comes to
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immigration and trade as well. wall street is very nervous about her because she says if she becomes president, she may very well abandon the euro and take france out of the european union. she's a key person to talk to and to watch as the year unfolds with lots of elections here. that interview coming up a little bit later here on "power lunch." >> that is a big interview. we're going to see you in a few minutes with more on it. meantime, back here in the u.s., team trump is beginning to take shape. and right now you are looking at a live shot of trump tower, where top tv network executives are meeting with the president elect. let's get to another top tv guy, eamon javers, at trump tower. >> we just saw a bevy of media big wigs walking in and going up the golden elevator for that meeting with donald trump. it is network executives and anchors. lester holt from nbc news walked in the building, we also saw wolf blitzer who is with a well
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known news network out there, a lot of people may watch, a whole host of executives as well. so it is not clear exactly what this meeting is about. we'll wait for a read out on when the guys come back down stairs after talking with donald trump. we talked to some of the folks on their way up, pretty mum about it. we do know one of the real points of tension between the media and the president-elect's team is over the question of pool coverage and whether the president-elect will have the kind of minute by minute daily pool coverage that a president has. the press does want to be with donald trump where he goes, whenever he moves around the city and the country between now and the swearing in. that's one issue you may assume will be coming up. we have seen a revolving door of top officials, political officials, from every party here. a couple of -- one democrat coming through as well. we saw meeting scheduled with rick scott, newt gingrich, mary failen, scott brown coming in earlier, stopping and talking to the press for a minute or two.
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not clear which positions all these folks are necessarily lined up for, but clearly donald trump having a bit of an audition here for some of the top positions in his cabinet at trump tower. when we get word on exactly who has been named to the positions, we'll bring it to you. as soon as we know what the upshot is of this media meeting, we'll bring it to you as well. >> i'm not going to put you on the spot but will anyway, is there any kind of a hard date where the team has to be in place. is there like a deadline or could we just get these trickle out headlines for the next couple of days or even weeks? >> we could get them for weeks, right. typically what you want to do is have your big ones, your secretary of state, defense, some of the other top jobs named as early as possible. and they can go in and start filling out the ranks below them, the undersecretaries, the deputy secretaries, all of those people need to be hired. it is thousands of jobs that need to be filled here. so they're going to start with the top and work their way down. if you remember, obama in 2008, i recall getting names well into
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december, up to christmas time, and we're starting to still hear some of those names coming out from the obama transition. you can expect that this will take a couple of weeks here. but they do have to have them in place as soon as they can because there is a lot of hiring that needs to be done down under the big names. >> thank you very much. and meantime, let's go back to michelle in paris for her interview with the politician that many call the donald trump of france. michelle? >> had you look at the calendar coming up in europe there are a whole series of votes, referendums, elections, that when all is said and done, based on the candidates who are rung, analysts believe we could see a more trumpian europe. one of the most critical votes in april, in france, and the reason is marie la pen has gotten a big boost because of donald trump. a lot of people think she can win. financial markets are nervous about her because she wants france to abandon the euro. she's thrilled with donald trump's victory.
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>> i am very happy about the election of donald trump. the choice of the american people was courageous advantageous and i think the united states will once again regain its former image in the world, which had become very damaged. especially by the administration for which hillary clinton worked. the united states cannot have the image of warmongers, with all the potential consequences it could have for our respective countries. so that the united states has once again regained an image as an organization of peace is beneficial for us all. >> when donald trump won, the french establishment woke up, seemed frightened and said, wow, marie le pen can win in france. do you think donald trump's win portends good things for you? >> i think that the elites have lived too long among themselves. we are in a world where
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globalization, which is an ideology, has forgotten and put aside the people. the people's interests, aspirations and dreams. they have acted like carnivores who use the world to enrich only themselves. and whether it is the election of donald trump, or brexit, the elites have realized that the people have stopped listening to them, that the people want to determine their futures and in a perfectly democratic framework regain control of their destiny and that panics them. because they are losing the power that they had given themselves. so, yes, in these conditions, if the french people wish to regain their independence, which to regain control of their country, and wish to reinforce the elements of security, the borders, the rule of law, economic patriotism, then i will be elected president. >> those who say marie le pen can't win point to the fact she hasn't gotten above 30% in any
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polls thus far. when other people point out what donald trump only got to 40% in the polls, and who believes the polls any more anyway, the election still five months away, by the way. coming up next hour, one of the reasons why she is compared to donald trump is because of the way she talks about immigration, she's been accused just like donald trump of being anti-semitic and anti-muslim. we'll have her response to those criticisms coming up in the next hour of "power lunch." >> who is her closest rival right now, michelle? in terms of a plurality in the electorate? >> so there is a new guy who just burst on the scene last night, francois fion. the republicans here had a primary yesterday and you remember nichololas sarkozy, its widely believed he would get to the second round, which would happen next week. he got shellacked and this guy francois surprised everybody coming in with 40% of the vote. if he had gotten a few more, he actually would have won in the first round.
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he is very, very pro free markets, but also tough on immigration, socially conservative. this is like a whole new world all of a sudden and so if he's the one that they -- she faces off against her, that could be very interesting when april comes. >> michelle, thank you very much. we'll check back with you next hour. after a few crazy last few days of the bond market, let's see if the action is hot or maybe if this shank thanksgivin shortened week will calm it down. >> we gave the grade a c for the demand straight up at 1:00 eastern for the dutch auction of 26 billion two-year notes starting a week with 88 billion in supply with 5s and 7s to follow. the yield at the dutch auction, 1.085. that happened to be the high trade in the one issued market. everything about this auction was average, 2.73 bid to cover,
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exactly the spot on ten auction average, 50.8 on indirects was a bit better than the ten auction average. and 13.4 on directs was a bit worse than a ten auction average. primary dealers take the auction, a c from top to bottom. tomorrow covering 34 billion five year notes. it seems like the rise in rates, as juicy as it may be, didn't entice short end investors, maybe the longer maturities might. sully, back to you. >> thank you very much. ring side with steve bannon. what dois really like? the interview that has everybody talking. the man who wrote it, michael wolf, still ahead. speaking of ring side, democrats suggesting they will pull no punches with donald trump and the gop. but is it the fight with each other that is going to go 12 rounds? the internal battle that could have a big impact and future of the democratic party.
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welcome back, everybody. good things come in threes. dominic chu with the trifecta of action at the nyse. >> that's right. let's not forget about the small caps and midcap s&p 400 as well. but if you look at what is going on, what is driving some of the action today, oil prices playing
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a part in that picture overall. maybe we get an opec deal, helping to prop up the prices for oil. if you look over here, exxonmobil, one of the better performers so far in the large megacap world, you can see there, up by 1.3%. up next to it, 3m. it is probably at this point the single biggest drag on the dow jones industrial average so far. i'm going to swing you around, over here, to what is happening at post six imc. big blue, ibm shares, talking about it quite a bit, we know ginny rometti penned that open letter to president-elect trump. it is one of the biggest point tailwinds for the overall market. as we talk about the record highs for the large cap stocks, some of these guys are driving it. exxon, chevron, ibm. i was speaking to art cashin earlier today, he said small caps a fobbous fcap s a focus for a lot of traders
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down here. >> time for our semiregular monthly series sectornomics. on deck today, consumer staples. newly engaged landon dowdy with a look at how the sector performs and the three months following a gop presidential win. congratulations, by the way. >> thank you very much. i appreciate that. we looked at the last five republican victories, 1980, 1984, 2000, and 2004 and three months after, staples are typically up more than 7% compared to the s&p of just over 2%. so what companies are your gop winners? philip morris parent altria up 17%. and the quarter following election day. trading up 80% of the time. tyson foods, not too far behind, with 16% surge after a republican wins the presidency. also up four out of five times. though tyson is a bipartisan
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gainer, also surges after a democratic win, november is prime holiday cooking season. no shock there. from foreman, the maker of jack daniels and high spirits, after a gop win, but on the flip side, foreman has underperformed in the four quarters following a democratic victory. >> thank you very much. at record highs in the market, what is an investor to do? let's bring in mark keisel. welcome. good to have you back as always. >> hi, tyler. >> what should i do in the face of potentially rising inflation, and potentially higher interest rates. how should i rearrange, reassess my fixed income portfolio most especially but also my equities? >> sure, tyler, basically i think what we're going to see is potentially higherflationary exs under trump. we like protected securities
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which will benefit as inflation rises. we also like being relatively cautious on interest rate duration. we think the dollar will strengthen and that's simply because under trump with the tax proposals go through and infrastructure, we are going to see likely growth pick up a little bit with inflation. that will allow the fed to raise rates. as a result, we should see dollar strength. favorite dollar assets, shortened durations. >> so shortened durations means in this context what kinds of bonds? do i still want to go with governments and shorten the duration? do i want some munis? do i want corporates? >> above all, we think trump will create both left tail and right tail risks. we want to basically increase cash positions. we want to take less interest rate risk within the bond market now, we're seeing opportunity given the big backup in rates, rates backed up 50 basis points
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in mortgage securities, which is an overweight for us now. we think mortgage is actually quite attractive with housing still doing well. and also the trump volatility is actually, tyler, created opportunities in emerging markets. brazil is our top pick there. unlike the u.s. where inflation is set to pick up, brazil inflation is coming down. so while our central bank will be likely raising rates, brazil is set to cut aggressively. brazil looks very attractive. >> as you know, brazil has done very, very well over the last nine or ten months. why are you so confident there is more to come? >> this is interesting, because i was recently in brazil, and over the last year with the new president, almost half of all of the biggest companies in brazil have new ceos and cfos. this country has changed fundamentally. they're implementing reforms. i think above all, they realize to attract investment they have to become more market friendly. and as a result, we'll see this inflation rate come down pretty
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aggressively. right now, the market in the next year is only pricing in about 100 -- 275 basis points of cuts. we think they're going to cut much more aggressively, 400 basis points. inflation which is now 7 1/2, will come down towards the 5 handle. there is a lot of room to cut rates there. that's why we are optimistic. >> this is a call on fixed income in brazil, right? >> that's correct. >> how do i buy it? >> well, basically, you want to receive rates in brazil. the other opportunity there is some of the brazilian corporates, like petrobas, it is basically benefiting from oil prices, also benefiting from the ability to sell assets and that company is deleveraging, which should cause credit spreads to tighten over time. >> what do you see in u.s. interest rates next year? how many hikes, how far? >> so we basically think the fed will go in december, that's priced in. in 2017, we think the fed will
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go one or two times. and that's just counterbalanced by the fact that inflation is picking up, it will be gradual, given the fact that you do have head winds of dollar strength and also china slowing. the outlook for 18 is really the most volatile and uncertain given the fact that we don't know which way we're going to see trump pivot to. if he goes more towards the tax cuts, and the deregulation, and infrastructure, that actually could cause the fed to have to raise rates much faster in 18 if inflation picks up. if the protectionist measures and the immigration more negative proposals go through that could put us in stagflation. >> i know you're a bond guy. pimco's view on equities, do you think -- does pimco believe the stock market will end the year higher than right now? will the rally continue in. >> i think the rally can continue a little bit. it is the fact we have a huge rotation going on all over the
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world out of deflationary hedges to reflationary hedges. i think that can continue. and the winners with moderately higher interest rates are going to be the banks, financials, finance, energy, specifically pipelines and insurance companies and focus on the u.s. consumer which is 68% of the economy. consumer oriented sectors under tax cuts are going to be winners. >> and we had a big pipeline deal today, mark keisel, thank you very much. have a happy thanksgiving. >> thank you. >> hon deck, opportunity for yo. the big wall street calls you need to hear about in this rally. street talk is what it is called and coming up next.
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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. time for street talk. analyst recommendations for stocks you need to know about. >> first stock, apple. oppenheimer negative, saying it is about to embark on a ten year malaise. it feels it will hit peak iphone sales in fiscal year 18, saying the premium price will have to close. software and services and that is apple's greatest defense. but still a primarily hardware company. analyst says despite the problems investors will remain interested in the stock because
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of the. >> remember that call where you said we're meeting nothing for ten years. stock two, aon, upgraded to an outperform from market perform, also boosted the price target, the analyst just met with greg caisson, the team came with the idea of the stop's valuation has been misunderstood. believes the stock is upside potential from the shift of mix of business. because of big data, citing growth in newer insurance areas like mortgage and cyberinsurance for aon. they boost it from 130 to 118. 5% upside on aon. >> next up, citi, wells fargo more positive on citi, increase in the buyback program by 20%. the buyback will improve wells' eps estimate for 2017 by 1% with modest reduction in tangible book value.
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still heightened uncertainty about international growth which weigh on shares and more u.s. focussed fears. >> smaller cap name of the day, this is ebolent health, a virginia based health care company, the stock has been whacked, sold off 20% of the past 90 days on obamacare repeal fears. sun trust reiterating a buy in the 30 day target saying the business should be largely insulated from any major changes. the an le $30 target implies 58% upside. most of any stock in sun trust coverage universe in the health care space. whacked on obamacare fears. >> a lot of the other stocks have also made a comeback, look at the medicaid stocks and hospital stocks, they picked up a little bit since that initial decline off the election.
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tyler? thanks. you probably know him as a mutual fund star, a hedge fund star, now turned nhl owner. making a big bet. jeff vinik will tell us about it. has to do with tampa. democrats in disarray. the battle brewing inside the party that could bring about big change. ♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪
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i'm susan lee. here is your cnbc news update. nikki haley not saying much about her meeting with president-elect trump last week, this to discuss a potential position in the trump administration. >> we talked about a multiple group of topics. and, you know, it was a very nice meeting. but i will remind you, it was a private meeting and i'm very respectful of private meetings. so i think what happens in those meetings, it is very important to keep that private. >> apple says it will provide a free battery replacement for customers whose iphone 6 s smartphones are unexpectedly shutting down. the company says the problem
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affects a small number of devices, maybe between september and october 2015. and it says it is not a safety issue. believe it or not, it was 40 years ago that the first rocky motion picture starring its creator sylvester stallone hit the screens. the message still resonates today. eye of the tiger. back to you. >> susan, thank you very much. stocks pushing to new records, the dow, the nasdaq, the s&p 500 and the russell 2000 hitting all time highs. oil soaring more than 4%. all 11, yes, 11 now, s&p 500 sectors are positive, energy the best performing one among them. utilities and materials also up strongly, financials right now the biggest laggards, but hardly call them a laggard, they're positive. >> paul ryan certainly has a big job ahead of him as the house majority leader in the new trump administration. but it is another ryan getting more house headlines these days,
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that is tim ryan. the owe owe democr he made his case on "squawk box" this morning. >> we have the smallest minority we had since 1929. we lost 68 seats since 2010. so how bad does it have to get? lose 80 seats, 90 seats? what is the number. you can drive all the way across the country from east to west, south to north, and not hit a democratic state. it is time for a change, time for a message, an economic message that resonates with all americans. >> joining us now is democratic congressman michael capuano of massachusetts. thank you very much for joining us. big battle brewing between pelosi and ryan. who are you ban icking? >> i'm trying to figure that out. i think everybody agrees the democratic message needs to be changed. who is going to offer the most likely changes we can actually accomplish. >> do you think congresswoman
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pelosi is partly to blame for the losses? >> i think there is plenty of blame to go around. i think to put it all on one person's shoulders would take that person and make them a little more important than any individual is. so i think we all share a little bit of this blame. >> whoever it is, congressman, there is a concern that like the republicans may have done to the democrats, by stymieing them, the democrats are now going to do the same or try to the republicans. is there any bipartisan spirit at all or is it literally you guys tried to block us under obama, now we're goinging to screw you guys over? >> i don't think -- i haven't heard that from any democrats. i would not support it. i think that just because someone else was a terrible person, terrible group of people, we shouldn't do the same. that doesn't mean we're going to come to an agreement. that means most of us are going to try to remain open until president trump actually does something. we are concerned about his rhetoric, concerned about some
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things he said during the election and supporters. let's see what happens. he'll be president soon enough and we'll make that decision, i hope, on a case by case basis. >> you're on the transportation infrastructure committee and that is one area that both sides seem to agree on, a need for some sort of infrastructure spend. have you approached the other side in terms of what can be done and how a plan can be paid for? >> that's the major question. we passed a transportation bill last year that was totally bipartisan, we all agreed on it, not a problem. but we didn't add any money to the pie. it was everything but the money. the money is the last final piece to actually do it. we don't have to revisit all the transportation issues. if the answer in a novel new way, we'll be open. but for me, if they answer it by saying, okay, now we're going to shut down the fuel assistance
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program, that's a nonstarter. i don't think that will happen or anything like that. so therefore again i remain open, we all agree we want to do it. but let's see how we pay for it. >> i spoke with some folks on friday on capitol hill, they said to me if you're looking for an infrastructure bill, you may be waiting for a long time. but right now, that's what donald trump wants. but that paul ryan and the other members of the gop including some prominent democrats would rather have it structured as a broader tax reform bill. would you support that not direct spending like hillary clinton wanted, but any kind of a tax stimulus rolled inside of that bill in. >> like anything else, i'll wait to see what they give, but here is the problem. the bigger, broader you make it, the harder it is to come up with a consensus. if you have a targeted bill that does infrastructure and only infrastructure, you're likely to get good bipartisan support on the assumption that funding is rare. if you add to it any additional
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layer, a tax bill in and of itself is difficult to come up with. we have seen significant policy differences on tax issues. doesn't mean it can't be done. when you take a simple issue like infrastructure and complicate it with all the questions about tax policy, international tax policy, estate tax policy, research versus poor, you make it -- i don't want to say impossible, but much more difficult to do. i hope they stay focused. i think there is a much greater chance of success if they do. >> congressman michael capuano. a pleasure. thank you very much for coming on the program. >> thank you very much. >> donald trump's decisive win in florida with the margin of 134,000 votes over hillary clinton is perhaps the key reason he is heading to the white house these days. more on the florida factor from two power players in the state's political and economic arenas, jeff vinik and the tampa mayor bob buck horn.
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welcome, good to have you with us. let me start with you. what went wrong for the democrats in florida? tampa voted for mrs. clinton, hillsborough county did. but she didn't carry. >> it is an interesting observation. what we saw was that the entire swath from the panhandle all the way down to south florida in the middle portions of the state went for trump. went heavily for trump. and numbers in the urban areas broward, palm beach, dade county, hillsborough, the margins she ran up was not enough to overcome a big, big turnout of working class, largely white folks. >> what is the democratic party need to do to reclaim, for example, the state of florida or to reach out to the voters that mr. trump was able to connect with? >> i think we need to have a message that resonates with working class folks. we can't be focused on identity politics. we can't be focused on ginning up new voters necessarily. that's part of the solution. but clearly the message was not
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resonating in working class america, wasn't just florida, it was in some of the heartland states, pennsylvania, wisconsin, michigan. we have to speak to their hopes and is conspire rationaspiratio. it has to be an economic message. >> one partner in building the economy, in tampa, is jeff vinik, right here. you just heard congressman capuano, i assume you're familiar with, from massachusetts, from your days up there, talk about the need for infrastructure development. you're doing a huge development down in downtown tampa, mixed use and so forth. how do you see infrastructure and what would be the best way to get it going from the point of view of a developer, a guy who is deeply, deeply involved in a local economy? >> i look at infrastructure, it is all kinds of things. could be technology infrastructure, could be gig bit economy, it can be transportation infrastructure, it can be water infrastructure.
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these are all critical things for the united states in the years ahead. and i'm happy to see that there is actually bipartisan support for increasing infrastructure. i'll stay out of the politics. i'm not going to figure out how we pay for it, et cetera. hopefully in washington they can come to agreement of that. within the tampa and tampa bay area, infrastructure is also very important. especially moving people around. we have a mayor who has been incredibly pro business. and when you come down to it, with what we're trying to do with our development, what mayor buckhorn is trying to do, it is all about having a faster growing economy in the region, more jobs, better jobs, more economic activity, and very bullish for the years ahead. >> there has been a lot of talk of getting the business community, investors like you, involved in a big way in whatever gets done on infrastructure. how do you see business fitting into the infrastructure spending and how would you feel as a citizen, as a business person, if the result of infrastructure
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spending is to expand the deficit and national debt? >> those are big questions that i may not have all the answers on. i do think there is an opportunity both within tampa and nationwide for a public private partnership. they're not always easy to put together. the economics have to be worked out. but i think there is always that opportunity. in terms of the deficits in this country and, tyler, i wasn't ready for that one, but i'll give it my best shot, deficits have come down to reasonable levels, they are expected to increase over time with health care growing, i actually am -- while i worry about deficits, i'm more bullish than most people are on them. i think we have made major progress on health care in this country, both in terms of putting more spending in the hands of the consumer. that's leading to, i believe, less spending over time and i think that health care spending will increase at a lower percentage in the future than others do. therefore, deficits may not be as harmful as we think.
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therefore, we may have room to increase them a bit with infrastructure spending. >> for a guy that wasn't prepared for the question, a darn good answer. if you had one area of infrastructure spending that you would like to see targeted, in tampa or nationwide, what would it be? >> transportation. florida is a state that needs multimodal options. that includes rail as an option. >> railroads. >> bridges, infrastructure, water and sewer pipes. autonomous, ride share. >> markets, i knew you as a stock picker stock picker. you moved on to different kinds of investments in lots of ways. private equity, real estate is a big thing. markets at all time highs today. how do you feel about the market as you look at it today? >> you look at the big picture here of what we have really and forgetting who is it in the white house now, who is going to be in the white house, what we
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have is good economic growth and relatively low inflation. inflation may pick up in the years ahead. >> it is not all bad. >> should be a good backdrop for good market performance. >> we were talking before in the cafeteria, and you said, it is tougher today to be a stock picker than it ever has been. why do you think that is? >> you know, supply and demand, i do think it is much more difficult in 2016 than it was 20, 30 years ago, when i entered the business in terms of outperforming an individual stock picking and i think it has been overtime a lot of smart people have gone into the business, and, you know, competition always makes things more difficult, and at the same time, in terms of the information flow, there is fantastic information out there, in terms of earning transcripts. so it is a very level playing field. which is good for the public, which is very positive overall, but it made it more difficult to
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outperform. so i think for the average viewer out there, if they're thinking about their portfolios, long-term, i think there is a mix that needs to be with -- some with active port followo managers, very well thought through and just those who can outperform. it is a small group, but also quite a bit of passive included with it. >> tampa bay lightning doing well. liverpool, doing well. the red sox, a playoff team. >> thank you. >> doing well. >> we like all that, yes. >> mayor, thank you. >> he's a great partner. >> thank you very much. appreciate it. still ahead, donald trump making waves across the atlantic. how his presidential win is impacting crucial elections in france. we'll head back out to michelle live in paris.
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all right, welcome back. could the french elections
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become somewhat of a deja vu of what happened here in the united states? let's head back out to paris, where michelle caruso-cabrera is joining us again, sat down for a wide ranging and excellent interview with marie le pen. >> thank you very much, brian. donald trump's win has had a huge impact on the french campaign for the election that is happening in april. listen to this, marie le pen, form a little consid formally considered a fringe candidate, maybe she can win. and then the finance minister of the economy minister, he said, you know what, i'm going to run as an independent. donald trump has proven outsiders can win. and nicolas sarkozy, the former president of france, as soon as donald trump won, he started attacking even harder to the right when it comes to immigration. big impact here. let's talk with the paris bureau chief for the financial times.
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great to have you here. >> nice to be here. >> is it true? do people think marie le pen could win in. >> yes, i think after donald trump's election there say realization that anything could happen. and marie le pen has been gaining trend electorally over the last two years and about 30% of the votes in france in the recent elections. so now, you know, people think, yes, it could happen. >> there was another big a-ha moment that happened last night. a guy named francois fion came out of nowhere and won the equivalent of the republican primary in france. a radical free marketeer, very unfrench. explain that one to me. >> it is true. we can see that -- can see a reaction to also the wave of -- on this primary. francois fillon was unexpected,
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unexpected winner or favorite in the primary race. but on the other hand, also very anti- -- anti-populist in a way because he's not -- he's advocating tough reforms, austerity, perfect spending cuts, so -- but, again, it could be a reaction to this wave of populism. people -- voters tend to react by choosing the candidate of, you know, the right. >> once again, the polls were wrong. right? he came out of nowhere. he's very unfrench, though, in the way he thinks about the economy. right in pro free markets, that's not french. he insulted the civil servant and claimed they were disrupting everybody's lives. they were previously sacred cows, right? the fact they could survive that signals something. >> yeah. it signals that, yes, you know,
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being radical in a way is -- could be working. everybody wants to be a radical in its own niche, i think, now. even the former economic minister, he wants to be a radical in the center. >> however that works. marie le pen actually when it comes to her economic program, socialist, right? and fillon is not. he's a hard free marketeer. you're set up for diametrically opposed viewpoints of the economy if this all works out that way. >> absolutely. marie le pen tried to reach out to the blue collar workers. those who feel anxious about -- and she has laid out a very socialist stat isist status pla.
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that helps to increase her reach within the electorate. >> thank you so much for joining us. we appreciate it. >> i'm grateful to be here. >> back to you. marine le pen wants price controls on things like bread. she wants to lower the retirement age. she wants to raise the salaries for civil servants here. so that part of her plan is quite traditional when it comes to france. back to you guys. >> fascinating stuff. thank you very much. all right, folks, mark your calendars and get those credit cards all warmed up because christmas just over one month away. joyeux noel, one of the biggest retail landlords is here with a check on the consumer and retail right after this.
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mary buys a little lamb. one of millions of orders on this company's servers. accessible by thousands of suppliers and employees globally. but with cyber threats on the rise, mary's data could be under attack. with the help of at&t, and security that senses and mitigates cyber threats, their critical data is safer than ever. giving them the agility to be open & secure. because no one knows & like at&t. hey nicole. hey! i just wanted to thank your support team for walking me through my first options trade. we only do it for everyone gary. well, i feel pretty smart. well, we're all about educating people on options strategies. well, don't worry, i won't let this accomplishment go to my head.
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tenants, great to have you with us, conner. we have been noticing that a lot of big retailers, big box retailers in particular want to shrink their footprint. have you seen that impact on your malls? >> a few have a smaller footprint but want to be more nimble and getting into urban areas. target has a flex format footprint. that allows them to open recently in tribeca and other locates where they can't land the big box. >> are you benefitting from moves like that where you have the other -- the alternative property for those guys or are you having to renegotiate leases with other tenants who may have had a clause in their contract saying we ned to have this or this amount of traffic or this tenant as an anchor tenant. >> supply and demand is very much in balance now. we still see tremendous amounts of demand from the healthy retailers today. smaller retailers were expanding as well. if you need to reposition a box,
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like ulta. >> if tennis it full kringle, gifts spilling out of the house, how is kimiko seeing christmas this year? >> we're optimistic. >> a number. a six, ten? eight? >> the national retail federation had 3.6% for this holiday season. >> growth? >> absolutely. >> not percent of kids getting gifts. icsc had 3.3% for physical stores. that's up over 2.2%. >> sounds jolly. >> it does. >> have you ever been below 5? using that scale? >> the kringle scale. >> is everyi year a 6 or a 7? >> you go in with significant looking at the new administration and tax cuts hopefully coming, that bodes well for a holiday season. >> what kinds of stores do you see doing well? >> best buy, for example, is a recent retailer that just
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reported and has really found that sweet spot to have both the e-commerce platform and the physical -- >> who would have thunk five years ago. >> they have a tremendous strategy. a store within the store, the service with the geek squad, if you buy something, you can get them to install it and doing more with google now, just announced doing more stores within a store and they really have found that balance to be competitive against amazon and others. >> in terms of the stock, reits are viewed traditionally as stocks -- you don't want to be in a rising interest rate environment. how much are you concerned about that sort of environment going into the cycle when the fed is expected to start raising rates again in december? >> we have been talking about rising rates for a while. kimiko we have been taking advantage of that by doing two 30-year bonds, extending out, taking advantage of the all time low rate environment, and selling our noncore assets. so where we look at the company today, we position it for growth, and have multiple levers for growth going forward.
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>> plenty of people to pick up the supports authority, big bankruptcy, they're gone. >> plenty of demand now. the off price users are exceptional. look at dick as sporting goods, and beauty, health and wellness, that's part of everybody's day. >> great to have you. thank you. >> we have seen all the headlines. but what is donald trumped a advisor steve bannon really like? we'll talk that and wolf's take on this fake news epidemic coming up with a very real "power lunch" returns. what's th? what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter.
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call now. . higher is where the stock market is going. welcome to the second hour of "power lunch." i'm tyler mathisen. melissa is here, brian is here as well. and we'll take you through to the closing bell here in an hour's time. stocks pushing higher and higher. the dow, s&p 500, and nasdaq all time highs, small cap and midcap stocks also going along for the ride. the russell 2000. oil rallying as well. crude up almost 4%. and the closing trades are just ahead.
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>> check out what is moving right now. apple is up more than 1%, the biggest winner and the dow jones industrial average, up by 1.5%. the tech giant offering free battery eplareplacements for ip 6s which shut down randomly. semantic up 3%, buying life lock for more than $2 billion. it is soaring by more than 15%. semantic's ceo will join us in a few moments. >> i'm here in paris, france, where i interview eed marine le present running for the presidency in france. the election is in april. she's often compared or described as the donald trump of france. particularly because of the way she talks about immigration and muslim immigration. you'll hear on her thoughts on both those subjects coming up in a few minutes here on "power lunch." back to you. >> look forward to that. thank you very much. we're on team trump watch as
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well. more meetings, more potential appointments to the trump team are possible today. eamon javers joining us for the aforementioned trump tower. all trump. >> a bit of a carnival fare here. a lot of tours, sightseers out. they're selling the make america great hats, the naked cowboy is here. i got a selfie with him. so there is a lot of fun being had here at ground level. the serious business is happening upstairs at trump tower. a lot of the top television executives, news anchors and reporters are upstairs meeting with donald trump now. we expect them to come out at any moment now. nobody would tell us anything, but i would imagine this being a group of reporters that some of that might leak when they do come down. so we'll try to get you a read on that. we're still waiting on any significant news in terms of new
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cabinet appointments today, kellyanne conway came through earlier this morning, talked to reporters. getting a sense we might expect something this afternoon, but as of now, no puffs of white smoke so to speak from the top of trump tower in terms of new cabinet poims today. >> we are look for that selfie and melissa is tweeting it out as we speak. >> i just tweeted it. so you can go there and find it. i got to tell you, the naked cowboy is a very gracious guy. posing for lots of selfies today. that's i had stock a that's his stock and trade, i guess. >> perhaps the centerpiece of the trump administration expected to be infrastructure, whether it is a stand alone bill or as sources are suggesting just part of a massive tax overhaul plan. something is expected to get done. even up to a trillion dollars worth. one company seen benefiting from that is martin marietta. joining us with a "power lunch"
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exclusive, the ceo, ward nigh. a lot to talk about. how optimistic are you that anything is going to get done? >> i think something will get done. look at the balance in november, look at local balance in 22 different states, they passed by 70%. we have seep an american electorate, we believe something will happen. >> what we talked about, conversations on friday, reported else why as well. trump would like a straight up bill. the gop seems more intent on putting infrastructure as some kind of a tax credit into a tax reform plan. are you agnostic about how it gets done or is one better or worse for mlm? >> we would love to see either one. i think we'll see some blend of each. we have to think about two different things, financing and funding.
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financing needs some form of immediate return, that will work relatively well in high population areas. funding is going to do something we have to think about on how we pay for this long-term, and how do we sustain it. because that's what's going to have to be done in the heartland of america, you still have significant needs, but not the type of return immediately that you'll see through financing. >> have you done any sort of a back of the envelope calculations? if you got a percentage of a $1 trillion bill, what that would mean for you guys? >> about 45% of ours busine bus directly tie d, so if we look a end uses in our business, 45, 50% infrastructure, 30% is nonresidential, 15% is residential, and 10% to either the agricultural community or rail, it would be a big mover
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for our business. >> do you get involved as a company in private highways and things like that? >> we will supply the materials to it. we're not involved in financing. >> at the end of the day, i know what we do well, we do the material piece quite well. >> what part of infrastructure, ward, would benefit you, asphalt, construction, more than say steel? if there is a huge bill passed, you have the fast act, the road surface bill passed last year, what would be better for you versus the other parts of transportation and infrastructure that could be built out? >> roads. the more that you see on roads, the more you see to a degree underground, the more that you see our products go to it. so if we sit back and look at what we spend as a nation relative to roads with respect to gdp, we're ninth in the world on that. relative to roads, a
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tremendous -- >> we did just pass last year that fast act, $300 billion, over five years, i think 225 billion over five years was supposed to go to some kind of infrastructure. why is that not enough? why do we need more on top of that? >> we didn't get more money with the fast act. we got more time with the fast act. so what we had done as a nation for a decade was we had gone through a series of continuing resolutions keeping the highway bill alive, sometimes on a month to month 30 days, 60 day type basis. the fast act gave states time to plan. if you're a secretary of transportation in north carolina or texas, now you can look forward three, four and five years to your point, so the fast act was important relative to time, relative to money it wasn't remarkably more. >> on financials, your last earnings report you saw volume gains across the board. analysts touting the pricing
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momentum. do you see that going into 2017 and could that mean a bigger impact because you have the prissi ing pricing gains as well. you can put in higher prices for the government spend on infrastructure. >> i think a couple of things. on the downturn, we lost 45 or 50% of our volume. the industry did. our businesses is right sized. we have cost structure where needs to be. pricing has been something in our world where you're seeing a resource it has been important. we saw 90 cents to every -- volume is key to us. what was out on the quarter, we saw volume down to your point, pricing was up. i think what people are excited about is they see something that could be there that could give us this nice steady run for an extended period of time. and what we're showing is the business is performing exceptionally well. >> a pleasure. thank you for taking the time out of your schedule for us.
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we appreciate it. >> check out shares of headwaters, another building materials company. it is being taken over by an australian company for under $2 billion. do not forget, little over a week go, an analyst was on this show, highlighting headwaters and lo and behold the stock gets taken out. good call, catherine. back to michelle in paris for more of her exclusive interview with marine le pen. >> marine le pen is often compared to donald trump, often called the donald trump of france because of the way she talked about immigration and particularly muslim immigration. she has risen in the polls because of the series of horrific terrorist attacks that have occurred both here in france and also neighboring belgium. remember, it was in january of 2015 there was the attack on the magazine charlie hebdo, the massacre that happened a little more than a year ago. the brussels airport attack happened in march of last year and the nice attack which happened in the summer, just
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this past summer. all of those things have led to a rise in her popularity. she is often criticized as being both anti-semitic and anti-muslim, at least her party has, and she rejects those criticisms. the shorthand to describe your party is frequently anti-semitic, anti-muslim. what do you say to people who use that description for the national front? >> the description that has been used for the national front in the united states is exactly the description that was used for the supporters of donald trump in france. each is as false as the other. it is a way for the system to discredit those who refuse to play by the rules of the system. we cannot let ourselves be infantalized. we cannot let ourselves be stereotyped. and i think that many americans today realize that the deplo deplorable image that has been
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made of the national front on the united states was as insulting and as misleading as the deplorable image that was made of donald trump and his supporters in france. >> muslim immigration, do you think it is bad, does it hurt french culture? >> i don't have a religious vision or a racial vision and the perception i have of my own people. what is sure is that france has been a victim of an absolutely anarchic immigration, massive immigration for decades now, which not only have imposed heavy economic problems, but also heavy problems of balance in our social regimes. and over time, problems of multiculturalism are dividing french society. it is creating communities that exist next to one another, and sometimes against one another. i don't want this for my country. my fight is not against religion. my fight is against the political use that is made today of this religion. for the number of immigrants who have come to france. we have seen it clearly, massive
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immigration leads to multiculturalism, which is in reality the basket from which islamic fundamentalists draw their combatants of tomorrow against france. we have to at all costs and with a very strong firmness fix these problems. fight against fundamentalist islam, bring fundamentalist islam to its knees and exclude it from our country. it is completely contrary to our lifestyle, our civilization, our values. and i cannot permit the laxity, the weakness of our government, in fighting against it. >> so the election in france is in april, we'll see if her messaging works and gets her high enough in the polls. right now, she commands the largest percentage, however, in france, you need to win a majority of -- a plurality is not enough, she would likely have to face off against someone else. one of the victims of the anti-establishment wave that is sweeping the world, nicolas sarkozy, the former president of
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france, he was in the republican primary that happened here in france yesterday. they thought he would -- the polls said he would very well extend to the second round. he got shellacked, came in third in a distant third. back to you. >> all right, michelle, thank you very much. >> big cybersecurity deal today, semantic buying life lock, both shares rallying. we'll talk to the ceo who pulled off the deal and to a man who will tell us exactly what donald trump needs to do to win the cyberwar. >> as we head out to break, what are the perks of being on trump tower watch, you get to meet all kinds of people. this is eamon javers, celebrity selfie, with the naked cowboy, despite his name, is relatively clothed. >> is that a perk? not a perk. >> depends who you ask.
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shares rallying, buying life lock for $2.3 billion. the company will be the largest digital platform, up 15% now. joining us for a first on cnbc interview is semantics ceo greg clark. pleasure to have you with us. >> thank you. pleasure to be here. >> walk us through the strategy of this deal. some analysts are saying you're acquiring a lower margin consumer business. how do you see this fitting in? >> i think the combination between semantic and life lock is outstanding. we feel really good about the
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identity protection market, and the association of that market to our semantic subscribers. as we all know, cybercrime and consumers is a crisis and the combination of identity protection with malware protection platforms is a great synergy for consumers. >> could you address the concern about a lower margin business? that's what analysts point out in their initial assessments of this deal, it is a low margin business compared to norton. that growth may come at a higher price near term. can you address that concern for investors out there? >> that's a great question. we find that our customers and consumers have a propensity to pay two to three times. we have multiples of the 4.4 million of life lock members. and we feel really good about being able to bring in the identity protection at the same cost of renewal and the same cost of marketing on the
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semantic side and be able to sell life lock to our many millions of north american subscribers, and we'll see margin of improvement in the business and on the coldest morning, guided to a combined margin of 40%, excellent for a business, you know, north of 2.2 billion in size. >> 40% margin, pretty good, no matter what size business you've got. what is your thought about how fast the business -- your business or the industry more broadly can grow? what is a reasonable growth rate? >> when we combine our business, we are guiding to a low single digit growth rate in the first period and we do see opportunities for that to increase over the odd years. >> in the future, what percentage of your business do you see being from the consumer side versus the enterprise side? is this part of a broader strategic view of your business where you want to delve more into the consumer?
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>> we already have the largest consumer security business under norton brand above 1.5 billion in revenue. so that is the leading brand for consumer cyberdefense. we are very optimistic about our ability to transform that part of our business to long term sustainable organic growth, which is a main premise behind the acquisition of life lock, life lock is now standing technology and our ability to really provide that identity protection as well as the malware work we do on the end point. we think we can bring very innovative solutions to customers. on the enterprise side, we see a ton of, you know, of uptick of the combined combination of blue code and semantic going extremely well as reported in our last conference call, we beat on the top line and the bottom line, we feel really good
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about the combination of the threat vector we get from cyberthreat coming into the consumer side as well and helping us predict consumer side early. >> thank you for your time. appreciate it. greg clark, ceo of semantic. >> thank you. president elect donald trump has a few assignments in mind for his cybersecurity task force that differ from president obama's current team. our next guest has a laundry list of things the administration needs to handle first and foremost. let's bring in john carlin. last time we were together, we were at the cybersummit in boston before you left public service. if you had three things that you would like to advise the new administration to do, in in terms of cybersecurity, what would they be? >> let's start with the backdrop. the threat is real. whether it comes to terrorists who through cybermeans broke
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into a major retail corporation, stole names and addresses, handed it to a terrorist group to create a kill list that was then pushed back to the united states through twitter, or iranian affiliated actors li s d to the revolutionary guard core there who hacked into a dam here in new york area, and if that dam had been working, would have been able to lift this loose control system and cause flooding. this -- the threat is here and only going to go worse. we made progress against it. but not enough given the speed with which the technology is changing and where we're adapting to it. >> number one -- >> recognize the problem. and then bring deterrents to bear. offense, cause pain to the adversary. we just started doing that. for too long, treated as an intelligence problem, kept secret. when a nation staid did something to the u.s. -- >> who is the adversary. it is russia, north korea? is that true?
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>> that's organized crime. >> well, top four nation states are russia, iran, north korea, and china in terms of -- >> the governments of those countries or people in those countries? >> so with those four actors, it is problems caused by the governments, by government sponsored activity. there are also a -- a huge problem with organized crime. go on the dark web today and go to look to buy stolen property or use a botnet, it looks like amazon's website. has customer reviews as to how good this crook -- >> gold card numbers, they're very specific in terms of -- if you look at the listings, it is like craigslist for all this information that gets stolen out there. i think you hit the nail on the head in terms of the nation states. for so long, we didn't want to provoke. we didn't regard it as an act of war. how important is that component of a cyberdefense is because there is a reluctant to say this
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is an act of war and what the response is, is it a cyberattack back or something else? >> whether you call it an act of war or not are doesn't mean you don't take responsive action. i think even if something falls short of an act of war, maybe won't say we're at war because someone attacked sony corporation, because of a movie they're making, that doesn't mean we don't call them out for doing it and impose costs back that are proportionate to what they did in a way that changes behavior. >> if anybody knows what we have done to fight back, it would be a guy like you. are you saying that we have not been aggressive in fighting? i can't imagine that we're -- that we're not messing with them in some ways in precisely the ways they're messing with us. >> we started a new approach in 2014, you saw us bring the first criminal case involving a nation state we ever brought against five members, for stealing from corporations, nuclear to solar to steal. it is a very new approach and i don't think we imposed the types
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of consequences we -- >> is there a time for a military response to a cyberattack? >> i don't think you can rule -- if a cyberattack causes the loss of life or serious injury, then absolutely. you can't rule out any use of power on our -- >> i hear you say that we brought a prosecution against, but i can imagine adversaries, they're going to sue us. >> good luck. >> that's how they sound too. in my mind. >> french. >> scare me. >> well, i think you need to look at the full range of u.s. government power. just like we have against the terrorist threat. sometimes, yeah, that means locking someone up for 20 years like the case of farise who stole the personally identifiable information or locking someone up for economic espionage. but it might mean using the treasury department to sanction the company that benefits from the stolen trade secret. might mean using covert operations or other operations to hit back at the enemy that
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hit you. >> john, thanks. >> thank you. movies, money, and chicken. that's what we have on the good, the bad and the ugly. and steve bannon, the man everyone is talking about, we'll talk to the reporter who just wret a great piece about bannon and is causing quite the stir out there. this is my retirement. retiring retired tires. and is causing quite the stir out there. rwret a great piece a bannon and is causing quite the stir out there. owret a great pi bannon and is causing quite the stir out there. twret a great pi bannon and is causing quite the stir out there. ewret a great pi bannon and is causing quite the stir out there. a great piece an and is causing quite the stir out there. re i'm in vests and as a vested investor in vests 123450 i inve with e*trade, where investors can investigate and invest in vests... or not in vests. sign up at etrade.com and get up to six hundred dollars. i've got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses, i looked at my options. then i got a medicare supplement insurance plan.
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. i'm susan lee. russian president vladimir putin said he and donald trump share an interest in normalizing relations between their two nations. he spoke at a press conference following the asia pacific economic summit in peru. san antonio police releasing video of a suspect in sunday's fatal shooting of a police detective. it shows the suspect walking into police headquarters asking a question before abruptly leaving. for the first time, walmart will kick off a cybermonday on black friday. that's a day after thanksgiving. the company said it would boost its online inventory by half this year. and basketball great magic johnson dropping by his hometown of lansing, michigan, to spread a little bit of a holiday cheer this year. students screamed when he revealed they were all getting brand-new bicycles.
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his foundation gave other families presents and food. >> everybody is here supporting this effort and we're all coming together to bring a smile to somebody else's face. >> a smile to my face. that's the cnbc news update at this hour. back to you. >> i bet it brought a lot of smiles. thank you. time for the good, the bad and the ugly. first to the good, netflix rising, higher by 2.25% after positive comments from green capital. the analyst is bullish on the long-term growth potential, specifically the international business and says netflix has an unstoppable lead in the internet tv business. on to the bad, not too bad, underperforming the financials, wells fargo in the red after being hit with new management restrictions. its regulator, it will have to get advance approval from regulators before making a wide range of business decision. it is an ugly day for tyson foods. look at that, down 14% after reporting much lower than expected quarterly profit, the company announcing that its ceo
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will step down at the end of the year. brian? >> all right, thank you very much. >> i'll prooil prices are soari. the idea that just perhaps iran, iraq and some of the other more contentious opec members are going to be able to put aside their differences and come to some sort of a production decision when they meet on november 30th. i'll believe it when i see it. the market believes it. >> the market believes it. last week the market wasn't believing it, right? >> don't like the weather, wait a day. >> wait a day. drama on broadway, did the cast go too far in their message to the president elect and vice president elect. we'll ask mr. wolf about that and about his big interview with president elect trump's chief strategist steve bannon. you do all this research
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liberty mutual insurance. all right, the trump meeting as it has been styled with media execs, bill griffin, wolf blitzer, breaking up just now. lester holt was among them, lots of the media elite there. >> pretty much everybody but us.
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>> one of mr. trump's top aides kellyanne conway spoke to reporters about the meeting. listen in. >> he's just got action packed days filled with meetings. these days are overscheduled with meetings. we have people flying in from all over the country, meeting with him, to give their advice, their counsel, share their experiences, vision for the country. some of which will result in appointments to administration and some westeish to be helpful. [ inaudible ] a lot of common ground. i think they both understood the country very well. representative gabbert went against her party, tim ryan raising concerns, bernie sanders today was quoted as saying that he thinks they should stop for the identity politics and democratic party. i think there is a recognition
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that there is a pbig country ou there with voters that feel disaffected from their party. >> the trump transition is rolling along. but the president-elect shows no signs of changing his style as he prepares to assume the office. let's bring in michael wolf. his most recent piece is an interview with the senior adviser steve bannon for the hollywood reporter. i want to get your take on steve bannon. this article has caused quite a stir because as much as it is a profile of steve bannon, it seems to be some form of indictment for the media and how they perceive the trump movement from the beginning. just reading a little piece of the article, the self-satisfied inbread -- what he's against and p provided the trump revolution. is this you indicting the media or is this a trump campaign
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indicting the media? it seems like the quote/unquote left immediate immediatia media it as you criticizing them. >> it was steve bannon saying this the media provided the perfect foil to donald trump. the media set itself up as his antagonist. across the board. you could hardly find any piece of mainstream media that was supporting donald trump. instead, it crafted this identity against him it was the thing he was against. and that really provided, i think, enormous -- it was resonated with something close to half the country. as for me it was curious, i went out, did this interview,
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reported what the man said, a man who is arguably the second or third most powerful person in the country or will be when the administration takes over and a full range of journalists, were suddenly, i don't know that they were, i guess they thought i was a sellout for talking to anyone in the trump administration. >> what does that tell you, michael? the response that you got because it seems, i mean, granted, this is what i've observed on twitter, i'm sure you've gotten many personal phone calls and e-mails on top of the response on twitter. it seemed like everybody who is responding to you is essentially saying you drank the kool-aid here. and how could you? and, you know, go be a journalist, you weren't hard enough on steve bannon. >> which is kind of extraordinary. everybody is sitting home or standing behind a rope in trump
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tower doing as far as i can tell nothing. they're taking selfies of themselves crying. instead of looking at this, and saying, this is the most extraordinary story of our time. this is our opportunity. and one of the things we have to do is get inside and figure out who these people are, what they're saying. it is really kind of time to listen to these people. they won. >> i don't get it. i'm a member of the media. i'm not going to be a hypocrite and sit up here like other members of the media lecture other members of the media about what happened. it happened. nobody connected. that's it. it is kind of interesting. it seems like the media is a pack of dogs chewing itself to bits now. what does steve bannon think of this? he's got to like it in a way, right? >> i think he absolutely loves
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it. he sees the media articulating what they are against. he sees the media as making it very easy to articulate that they're against. just point at the media. >> he's kind of right. if you flip through the sunday talk shows this weekend, it is like six journalists talking to each other, the same stuff. >> there is a great example. i was there last tuesday, i was in trump tower, spent all afternoon there, was watching what was going on. conference rooms filled with people. mike pence going from here to here. jared kushner in the hall, a very organized, focused transition team. article the next day in the new york times, transition is in disarray. there wasn't anyone from the new york times there. i was there. they weren't. disarray. there was no disarray. then this morning it was the
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transition has become a spectacle, a strategic rollout, all the times reporting this, so what is it? disarray? a spectacle. they have no idea. >> why do you think mr. trump met with the very representatives of mainstream media that mr. bannon opposes. wolf blitzer, phil griffin, jeff zucker. why do you think he met with them? >> i think he's going to be the president of the united states. he's not fooling here. he is doing it his way. but much of the way he is doing it is what you got to do. got to reach out to the media. the media is an important constituency. it is, you know, he wants to look at them as much as they want to look at him. so it is like why did he meet with mitt romney?
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he is -- he's the president or he is going to be the president and he wants -- he wants it to look like he is going to be the president. >> michael, i want to switch gears and talk about the fake news problem, facebook saying that it is going to combat fake news with a bunch of various initiatives. how big of a problem do you think this is. do you think it is facebook's responsibility to fact check when it is simply, you know, the aggregator to do speak? >> i absolutely think it is facebook's responsibility to take responsibility. whatever that involves. i'm not sure. but i think -- i think facebook is a publisher. i think it should be held accountable for what it publishes. i think we should be able to sue facebook for what it says if what it says is not true. >> it is interesting, too, michael, i completely agree with
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you. this is -- i don't -- i had a long conversation about this yesterday. do you feel like we have a fake news problem or a fake money problem? what i mean by that is the way that you get paid on the internet, you create some inflammatory thing, everybody clicks on it with google's ads, they paid -- the advertisers pay google and google pays you. the incentive is to come up with crap, make something up with somebody's bold face name in the headline and get the clicks. >> there are actually two economic incentives. don't pay very much for the content you're creating, and then get as much traffic as you can because you're getting paid by the click. there is also another interesting point about this, you know, in traditional media, advertisers were responsible for what they were advertising against. that doesn't happen now. anybody can get advertising
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money. if you have traffic, you just sign up with google and they'll give you ads. so anything, no matter how untruthful, tawdry, disreputable or even in many cases pornographic it is, you can get an advertiser to support you. >> we'll leave it there. thanks for coming on. appreciate it. >> thank you. >> michael woolf. >> i have an article in the next hour, melissa lee professes love for brian sullivan and it is going to -- >> everyone knows that's fake. >> it is going to burn up facebook. i'm going to make 60,000 franks. is france the next nation to leave the euro or to go back live to michelle who is in paris. plus, biggie. general wesley clark will join us. we'll talk about france, talk about nato, talk about europe's future and what is a very real interview. sometimes when brushing my gums bleed.
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welcome back to "power lunch" on cnbc. i'm michelle caruso-cabrera in paris, france, where today i interviewed marine le pen, running for the presidency of this country. she's often called now in the wake of donald trump's win the donald trump of france because she's similar positions on immigration, and trade, and there is also this implicit suggestion within her campaign
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of make france great again. and by that, i mean, for example, take a look at this symbol, this red rose, this is a symbol of the socialist party here in france, particularly under the presidency of francois mitterrand, who led the country in the 80s and early 90s. she has taken that red rose and appropriated it and turned it blue. and you can see posters in her office where she's used it to try to suggest the greater glory days of france and to speak it baby boomers. bridgette bardot on the beach in a bikini with a blue rose between her teeth. the rolling stones lips, except, of course, with the blue rose. clint eastwood is dirty harry, not firing a colt 45, he's firing a blue rose. she told us she put that up because he was the only one who supported donald trump. einstein, drawing a rose on a chalkboard. and a more recent image,
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throwing flowers, a blue rose. we'll see if the imagery helps. the election is in april. she's been rising in the polls, but still a long way to go. tyler, back to you. >> michelle, thank you very much. for more on the future of europe, let's bring in general wesley clark, former nato supreme allied commander. welcome. we got a lot of elections coming up in europe over the next year. will unified europe survive? >> i think it is going to have to do something about its debt problem because there is a lack of aggregate demand, the economies aren't growing adequately, they're not employing people, this makes assimilation more difficult, escalates social tensions in the country and so it is not clear where europe is headed right now. there are a lot of forces pulling europe apart. whether europe stays together will depend in part on america. and how america interacts with europe under president donald trump. if america's infrastructure
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program gets started, it is going to pull production from europe as well as from the united states. so twill be a stimulus to europe. that will help europe. if it becomes divisive ideologically and nato doesn't hang together the same way, it will hurt europe and hurt europe's future. so a lot of uncertainties now. >> right. lots of ways to explain why donald trump won the presidency, one of them is the ascendants of economic nationalism. is economic globalism dying? >> i think we have hit the -- hit the wall in terms of believing that you could simply have favorable macro economic conditions, low interest rates, and then open up the walls and do trade and it would automatically lift everybody up. that's clearly not the case. so there is a role for government to stimulate demand. i know that may not be exactly what mr. trump is saying,
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because what we're talking about is private sector. but there has to be leadership to encourage the private sector to invest in public infrastructure goods. >> let's talk a little bit about nato and threats to it starting with turkey, which has the largest or has the largest or second army force in nato. what kind of challenge is that going to be for the administration? and number two, how likely will mr. putin be to the administration, and will they test him early? >> i think turkey and russia pose challenges that have to be dealt with. turkey because turkey has ambitions and aims in both northern iraq and in syria. russia's also present there. so i think it's important to establish a personal dialogue for the president of the united states. he's got to be able to talk to foreign leaders, but i think it's a mistake to believe that the countries will forego their own national interests to be
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necessarily in a most favorable personal relationship with the new president. so for russia's interest, they would like to see a nato rolled back. russia's pushing in the baltic states. russia is pushing in the black sea. russia's built a new so-called emergency action service in serbia, but it has deepened its military secure communications in serbia. and serbia is an offset to what nato has done with montenegro, kosovo, with albania. so the ground is set for tension there. and how that works out is a reflection of two things. first, the united states has to have and project consistent, reliable partnership with its existing allies. and secondly, it has to be able to engage, especially mr. putin n constructive dialogue. >> general clark, as always, we appreciate your time. general wesley clark, former
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nato allied commander. is it a force of nature? or a sales event? the season of audi sales event is here. audi will cover your first month's lease payment on select models during the season of audi sales event. (bing) but they demand the best shopping experiences. they may want the latest products and services, they're your customers. and by blending physical with digital, cognizant is helping 8 of the 10 largest u.s. retailers meet their demands with more responsive retail models... ones that transcend channels and locations, anticipate expectations... creating new ways to engage at every imaginable touch-point. it's a new day in retail, and together, we're building the store of the future. digital works for retail. let's talk about how digital works for your business.
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welcome back. here's a news alert. on amazon they have been in
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talks with a number of major sports leagues including the nba, the nfl and others to acquire live streaming rights to live sporting events. of course, this is a big deal because live sports is considered the blue holding the television bundle together. on this news amazon is up 2%. disney owns espn and is taking a dip, but it's a hot area to watch. we'll reach out to all the companies in the league to see if they have any comment. this is reported by "the wall street journal" just moments ago. back over to you. >> wow, julia. thank you very much. meantime, the nasdaq composite is hitting nominal highs today. your value, guys, any value left in tech? >> i do believe that to be the case. actually, we think that over the next 12 months you can get a 7% to 9% total return within nasdaq. earnings growth is there 10% to
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15% for 2017 as well as revenue growth around 6%. so we would be overweight, the growth stocks at this juncture. >> chris, do the charts suggest more upside or is this it? >> they do. and the target is 6,000, that's a 12% increase here. i think it's important to remember after 15 years of purgatory, the nasdaq has now made its first new high in about 14 to 15 years. and about 20% of the stocks within the index are breaking out to new highs as well. so it's relatively broad-based. and it is more than just fame. there are 2500 issues in the index, a lot of them are cap stocks, so the strength in nasdaq is strength in small caps, that's a group we like here. so higher is the call. >> fantastic, chris, chad, thank you both very much. >> thank you. for more trading nation, go to our website, tradingnation.cnbc.com. we're back in two. >> and now the latest from tradingnation.cnbc.com and a word from our sponsor. >> in terming to do or entrance
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oh caroline. so corporate put you up in a roadside motel. but with directv from at&t, you can download then binge watch your dvr'd shows from anywhere. that makes you more powerful than whatever it is you just stepped in. or that friendly dumpster diver outside. i wouldn't sit there. it's your tv, take it with you. now you can watch your dvr anywhere, at no extra cost, with directv from at&t. julia just brought us this story, amazon is looking into a possible sports package with a prime membership. that could be a very big deal for amazon and could attract a lot of subscribers.
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>> you stick it in the back of your television in the usb port, stream it wireless, that's it. >> that's going to disrupt all the media contracts, all of them. >> absolutely. something to watch, certainly. thank you for watching "power lunch." >> shall we do it together? >> one, two, three. the "closing bell" starts right now. that was lovely. welcome to "the closing bell." i'm kelly evans. >> and i'm mike santoli. they were in unison. >> that's amazing. >> as we say, the major averages all on track to close at new highs today. energy leading with tech and utilities not far behind. >> and the small caps are playing a role. the russell 2000 is seeing the longest winning streak in 12

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