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tv   Power Lunch  CNBC  June 13, 2017 1:00pm-2:31pm EDT

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>> a sand and propellant -- it's a play on hydraulic fracturing so if you want a cheap fracking play below $5, i bought this one. >> combination of the fed and what jimmy is talking about. i agree it's going to go up. there's my money in the dish giddyup. >> good stuff, guys. we'll see you tomorrow thanks for watching as well. all-time high for the dow. "power lunch" starts now will d.c. be darned? the dow hitting another record high but there's a new warning out from investing legend bill gross. why he's stashing cash and the one region outside of america he's betting on. and all hands meeting at uber ahead of the release of a major report detailing that company's culture. what will it reveal? we find out in moments as we got breaking news on ou ber crossing right now. and bit coins' record run captivating wall street and main street can you actually live off bitcoin? the surprising journey as "power lunch's" journey begins right now.
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and i'm melissa lee coming to you live from the emerge conference here in miami it is the tech event of the americas with us on the "today" ai social media navigating the tech world right now co-founder weighs in move over silicon valley and alley for that matter. why miami may be becoming the next high-tech zone. >> welcome i'm becky quick. let's take a look at how markets are trading now. green arrows with the dow hitting an all-time interday high the dow up 82 points s&p up by ten points the nasdaq up by about 40 points by the way, nasdaq is up for the first time in just three sessions after some rough days apple, netflix, amazon and facebook are all trading higher and materials are the second best performers today led by cf industries, martin marietta and sherwin
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willia williams >> ron barron striking an optimistic tone this morning about markets and the economy. >> with lower are interest rates than we think and lower oil prices than we think, we think the economy will grow much faster than it would have otherwise. and so stock prices as a result are cheaper than they should be and, finally, gdp is significantly understated. >> bill gross of janus henderson is not quite as optimistic in his latest outlook he says all markets are increasingly at risk economic growth is and should continue to be below par and bill gross is joining us now bill, it's a pleasure to speak with you thank you for joining us >> brian, thank you for having me >> we think of you as the bond guy but you are literally unconstrained and you have invested in stocks to a point, to a small point in your fund. what do you make of ron baron's optimism on the economy and the markets? >> well, i think it's a little too optimistic and when he talks about gdp numbers being distorted that's a typical argument when things don't go
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your way the way i see it the u.s. economy is a 2% economy plus or minus not a 3% economy and i see the global economy as slowing, too. brian, the global economies are faced with what are secular head winds. i call it the normal some called it secular stagnation and we're talking about aging demographics, people getting older, talking with about debt, too high debt levels we're talking about global de delevering and those that lead to slower economic growth. there's not much monetary orificecal policy can do about it >> bill, sit tight we're not going away but we do have some important breaking news on uber deirdre bosa, what do you have >> reporter: brian, according to "the new york times" ceo of uber is going to be taking a leave of absence, travis kalanick the reason he will be grieving
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his mother after a tragic boat accident where she passed away a few weeks ago. it is not clear at this moment who will be stepping in but, remember, this is a leadership team that has been decimated by this holder investigation. we're still awaiting the results. i have them right here, guys i'm going to be going through them and we will look for more casualties from this report and bring you more -- we can see now there is an e-mail that travis has sent out company wide, the last eight years of his life has always been about uber but again, guys, he will be stepping away for a leave of absence. we'll get back to you shortly with more details. cnbc can confirm this as well. >> we're going to see more of you in a couple of minutes as you have time to go through that back to bill gross of janus henderson. thank you about that, bill uber is a big story certainly. >> sure. >> we don't want to invest with what's going on today. generally if you're smart you want to invest what's going to happen nine months, 12 months, three years from now we had an interview with a fo
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former fed official, moody's coming out, both suggesting the fed could go as high as 3% over the next couple of years a, do you agree and, b, what happens and where do we invest if they do >> well, not in this economy until nominal gdp, real growth plus invasion basically at 3.5% to 4% now. a 3% fed fund rate is restrictive. it would remind me of what bernanke did in 2005 and 2006 when he raised the fed funds rate to 5.25%. it was too restrictive i don't think the fed can do that i don't think other global central can move higher. ultimately they should savers and investors need higher interest rates in order to pay off liability to insurance companies, pension funds and the like i don't think they will. i think they're going to hike once and perhaps once next year. that's what the market anticipates. we simply have a levered economy that does not stand or could not
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stand 3% fed funds rates >> bill, it's becky quick. it's great to see you today. >> hi, becky >> good to see you the question i have in terms of why market's at these levels now, why would you say that is it's been kind of defying gravity for so long particular ly since the election. >> well, all due to central banks. that's the only place where we need to it look, becky central banks have injected $8 trillion worth of money, credit into the system over the past four or five years we're talking about the ecb, the boj, the fed, of course, and they haven't done that for a year and a half or would $8 trillion is a lot of money. it's about 8% to 9% of total credit on a global basis when you put that into the system the money finds a haven, it finds higher yielding assets like stocks and leads to bubbling in many asset categories i think almost all assets are artificially priced and that once central banks stop doing
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what they're doing, and they will at some point, then investors should be leary. >> it could take a while to get to that position if the fed starts rachl ratcheting down its balance sheets, they are all planning to inject more liquidity into the system at least over the course of the next year and a half or so does that mean markets might have a bit of a run still before you see any pullback >> yeah, i think that's possible as long as the ecb is $60 billion a month and keeping interest rates basically at zero or less. then global markets will be arbitraged and u.s. treasuries and u.s. stocks will benefit from that. ultimately it's a central bank gain and to the extent you have to keep playing musical chairs or you have to keep dancing like chuck prince said, you do have to keep dancing, to invest in markets. but you have to be careful that at some point once central banks stop injecting money the game will end rather quickly.
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>> we're going to see you tomorrow, bill, but we have our own central bank, the federal reserve decision i'm sure you're likely in the camp you're going to get a rate hike everybody seems to agree on that what kind of language do you want to harper the fed say about the deleveraging of its own balance sheet? >> well, i think they'll hint, brian, at the $10 billion a month delevering does that do much on a $4 trillion balance sheet not really and so that will assuage investors in terms of the ten ye year it will keep the ten year posted and pinned, i guess, at around 20 or so, plus or my fuss. the fed will be very cautious in its language janet yellen is dovish and i continue to see that in the expression they'll keep money cheap for a long time. >> bill gross of the newly renamed janus henderson. we'll see you tomorrow get some rest. >> so you just got bill gross' take now the view from one of the biggest bulls on the street,
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chief u.s. equity strategist at rbc is out with a new note raising his year-end target for the s&p 500 to $2,600. good to see you. that is a gain of more than 6% from where we are now. what do you see that maybe somebody like bill gross isn't seeing at this point >> i think i disagree with the premise bill has this is simply central banks are almost like central plan ers choosing where to push markets. what pushes markets higher are earnings and if recessionary risk is low and the fed is telling you it's low, multiples tend to go up until basically you start to get a threat that the cycle is over. so earnings look like they'll come in something like 7% to 9% in the next 1 2 months and if you get a half to a full pe point 12% returns for the next year and it has nothing to do with free money. it's a simple math
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>> does it not, though -- i don't want to speak for bill but it's -- you have to agree a little bit ksh and i agree with you, jonathan, 100% that earnings should be the most important thing for stocks but do you agree at all that it artificially low interest rates do help goose earnings >> i'm going to take the opposite side. when you have artificially low are interest rates, the first thing you do is you fry the banking sector and make it very difficult for them to lend profitably so that hurts bank profitability by having artificially low rates. the second thing is savers or retirees have to live off of a measly interest rate and don't have the same level of capital to spend the market if it sets the interest rates themselves you should get more output at the market set interest rate and why central banks believe that by a artificially lowering the rate they get more.
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>> you staked your place in the sand it's great to see you, jonathan. let's get back to deirdre bosa with details on the uber meeting, breaking news coming out. what can you tell us now >> reporter: hey, guys we can give you a little bit more detail about travis kal kalanick the ceo of uber, his decision to step down. we have an e-mail he sent to uber's 14,000 employees. in it he says that if we are going to work on uber 2.0, i also need to work on travis 2.0 to become the leader this company needs and that you deserve. he also says that during this interim period they will be running the team there have been a whole bunch of departures while the investigation has been ongoing his number of reports have been depleted
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he says it is hard to put a time line on this it may be shorter or longer than we might expect. we also have the report are from the holder investigation that has about 14 pages long. i have it right here but it has recommendations such as reallocating the responsibilities of travis k kalanick and identify candidates who can help address these recommendations. they already brought on several new people they've lost lots as well. this is a culmination of months and months of investigation. we'll continue to go through it and bring you more >> six or eight eyeballs are better than two, deirdre i will add to it you said it's a 14-page report i see other recommendations have to do with reducing alcohol use at work events and i will not ask you to comment on that directly but as a comment/statement if these are the recommendations you need to
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have as a corporation, you're starting from scratch. >> a the lot of these reports have come out in the last few months but it's been going on for years. this company has grown very quickly. there have been reports of parties in vegas, company wide parties, when it was much smaller than it is now they've operated hard and fast and there are reports such as guidelines that travis kalanick sent out about how to conduct themselves at these so-called parties. where there was alcohol involved, that's part of the reason, maybe a big part of the reason we've seen that he is taking a leave of absence. i want to make clear, though, brian, in his e-mail it is to grieve his mother who he says he put to rest just last week >> you know, deirdre, when the news crossed i thought immediately if this were publicly traded what would
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happen to the stock price. and it seems unclear at this point given the power vacuum that exists at the top you get the sense now might be the perfect time for uber to bring in the adult in the room, so to speak, and what sort of pressure could the venture capitalists be putting on the company now to get that adult in the room >> melissa, that's a great question i think an important point to look at, yes, this company has seen a lot of crises, has been in the media but let's strip that all away, look at its core business and we did see some financials from the first quarter. and the business it self is improving. they're narrowing the massive losses so there was an article on by bradley tusk who was is the adviser to uber while we strip away some of the old management, leadership and put new people in, there is a
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bit of a risk you could do something to the core business largely a cultural problem and some indication that it is, that lyft may be taking advantage of all of uber's woes this is seen as a cleansinging and whether uber will take them, put them in place and make the changes necessary. >> deirdre, we'll give you time to dig through that 14-page report thank you very much. i have a news alert on the bond market. 30-year bonds are up for auction as well. rick santelli tracking that at the cme. i don't know if you heard the bill gross interview but steve liesman talked about fed funds going to 3%. what's your take on everything going on >> reporter: 2.87, 30-year dutch auction yield. i gave the auction a c-plus.
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charlie plus all the metrics were average price tight, though, with that 2.87 now done i had former governor robert helle are r on he said the same thing and i don't dispute the notion that there's a good argument to be made the rest of the market isn't under normalization function it's not going to normalize. i don't think the long end can handle that. i think bill gross is right. they'll invert the curve never a good thing >> rick, thank you very much we will see you again soon, rick santelli folks, bitcoin has been hitting record highs can you actually live off of bitcoin? we did and by we i mean seema we will tell you what happened and the uber report crossing and travis kalanick is taking a
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w llt fe te omheomny howi iafctheir valuation? that question next so, how are things career-wise?
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they- you're fired! [ screaming ] it's time to get back on top. we're going back to villainy. ♪ so bad ♪ so good that i'm so bad... [ maniacal laugh ] ♪ don't try to fight the feeling ♪ ♪ of somethin' that's so organic. ♪ [ pop ] despicable me 3. rated pg. all right. that eric holder investigative report into uber is just breaking so far the big headline is this. travis kalanick is taking a leave of absence for the company with no timetable on his are return what does this mean for uber
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manageme management, its customers, let's bring in the professor of law at northeastern university and m l molly wood, tech correspondent with marketplace polly, i'll begin with you kalanick leaving, no timetable for his return a number of other top-level posts. what is uber today is it an operating entity? >> that's a pretty long list you do have to remember uber has brought on some fairly high-profile people in recent weeks including francis frye of management and strategy. there will be people working on revamping the culture and they will be promoting from within but it is absolutely true one of the biggest problems at uber that's been identified by people like francis frye is that it has a problematic management structure in which everything flows through travis kalanick. it is certainly going to be an
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absence felt pretty keenly >> molly, the one thing i will say is this. it's a private company so we don't know all the internals but we haven't seen fidelity and other firms that track the value of private companies write down their thing, that maybe this is hurting their core business. people are still popping out of ubers millions of times a day. do you believe the company will go through this storm and come out the other side as it was >> i think consumers will decide and i saw some brand research just this morning that said uber's favorability is starting to take a dent it was from morning consult, dropped nine points in just a week and its favorability rating was about 40%. as it reaches the mainstream i think the consumers will make that determination whether this is a company they feel good about. so far ridership has been increasing there hasn't been a huge sign there's a policemen wiproblem wh
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the business so many companies, investment funds, institutions have money in uber now that it's not in anybody's interest to try to tear down that valuation unless we find out something about the financials of the actual business which, i have to say is still possible we really don't know whether this business model works. >> andrea, what happens in a situation like this? it's hard to even think of a similar situation in the past where you have somebody like an eric holder come in, issue a report like this what do you think the next logical step is? >> i think the first step to follow through next on uber's part is to take those recommendations very seriously and so this isn't an unprecedented growing pain situation. if you look at the history of google, of microsoft, you see other magic tech companies go through restructuring and to shift from entrepreneur and creation mold, builder mode into public company mode and we can view this as a unique opportunity for uber to engage
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in precisely that kind of transformation the key metric that i'd be curious to see is the ridership churn. how many of the early adopters that started out with the company in 2013-2014 are still customers and what their opinion of the current company is and the way the company does business could be a har binge earp of future downward trends in ridership >> is it possible we're looking at a company that could actually be completely salvaged and i insulated from all of these woes molly, that's what it sounded like to me andrea, you're saying take a look at some of the churn numbers. when will we know? when it goes public? is it possible uber rides this whole thing out and is completely unscathed >> it's certainly possible we would know for sure if for some reason travis kalanick did not return from his leave of absence. it's important to point out that is a perfectly reasonable and natural thing for someone who
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just lost his mother to do it doesn't necessarily have to be seen as a referendum on the company's performance. >> except the holder report is coming out -- the context is there's a mass exodus, right, the context is the holder report was coming out, is that the context the female engineer wrote the blog back in december. >> oh, absolutely. absolutely >> we're sympathetic but -- >> right i'm just saying that a leave of absence would be a normal thing to do. if he does not come back or the board decides he should take a significantly reduced role, that will be a massive decision that would be a huge change for uber because they have put everything at his feet if he doesn't come back, then we know things are very, very bad >> andrea and molly, don't go anywhere we'll get back to this conversation deirdre bosa has been going through the 14-page report and joins us now with more deirdre? >> reporter: brian, yes, something that sticks out to me
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is one of these recommendations and also, remember, the board voted on sunday unanimously to support these recommendations. the second one is to enhance board oversight. the report recommends creating an oversight committee and installing an independent chairperson of the board, someone tells me, a source, that will happen in the near future and that raises all kinds of questions about travis kalanick's control over the board going forward. he has thought to have had an outsized influence as well as some of the insiders like the co-funder as well as ryan graves who was a very early employee and once ceo big changes coming and, again, i hear that could happen very soon and remember, too, brian, i should also mention that i don't see this confirmed in the report yet but i was told from a source that they are going to be adding that nes it tle executive to the board, and she is a woman, a well-regarded one. some big changes not just on the executive team >> deirdre, thank you. some quick reaction from our guests molly, one of the things i'm
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reading, some of these are symbolic changes i can't believe this is legitimate but saying the conference room known as the war room will be renamed the peace room is that something likely to have any sort of an impact? >> i actually just got a text while deirdre was talking about that exact same thing and people internally at uber are seeing that as an lol thing but, you know what, it is the sum of its parts. it's so hard to change culture culture is so intangible but we know that words matter, that messaginging can matter. they might see it as silly in the beginning but if it is part of a really comprehensive suite of things that ushers in a kinder, gentler uber, this stuff takes years. >> andrea -- >> years >> we'll talk more about uber going public there's a chance they might never go public. they're still losing billions a year, andrea i want to talk about culture because let's not pick too much on uber here, right? you have a number of companies that have either had
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questionable business practices, questionable culture, now uber is just the biggest of and getting the most attention what the heck is going on in silicon valley >> well, part of the dynamic is what i call the builder bias in tech which is the skills that help to build these magical companies with millions if not billions of dollars of revenue those skills in building aren't necessarily the same skills in running companies day-to-day and certainly not the same skills in self-critique and breaking down the errors that are happening in corporate structures and also not the same in fixing those errors this builder bias -- >> let's be clear, andrea, i'm going to -- you have groups of -- you have groups of 20-something -- i was in a fraternity you have groups of 20-something men who are caged up together for hours and hours. what can silicon valley do to change the fundamental culture
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because uber is not the first and it won't be the last >> sure. apart from the good diversity initiatives we're seeing popping up, one key element to look for is the role of general counsel in a situation where a company is starting to ramp up toward an ipo or to preserve trust among partners and investors you want to see them having a greater control over day-to-day operations including veto power over when products shift and to be able to stop the suboptimal ideas such as an app that might trade regulators when they use the service or, say, a breach of contract with the apple itunes store when that would potentially disrupt a large section of business. those kinds of day-to-day decisions that would have meaningful impact on share price
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if legal consequences come down the road that's the sort of input and veto power that mature companies have in the general counsel's office >> thank you very much for your time today we do appreciate it. we want to get back to deirdre she has a little bit more breaking news. what can you tell us >> reporter: it is coming quick and also i'm getting some information from a source so not necessarily from this it report that we're still going through it more on who exactly is going to be able to manage the day-to-day operations of this d $70 billion company once travis steps away, and i'm hearing that it's more of a management committee. it will be made up of three regional gms francis frye was just brought on to look at strategy and leadership leeany hornsy is in in hr, guys. >> thank you very much we'll continue to follow this and will get back to deirdre as we see additional headlines. to melissa in miami to find out what is coming up.
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melissa? hey there, becky here at the emerge conference a lot of tech disruptors are wandering around here and i got to catch up with a co-founder who sold the navigation company to google for $1.1 billion a few years back, and we talked about his next big thing >> 2008 was a terrible year on the market and the beginning of 2009 i got my annual statement from my retirement plan and i noticed in addition to losing 20% on the market i also paid 1.5% fees for losing money and i was upset not because of the amount of money i paid, because i didn't know. and i decided that it's not okay i started to ask how much fees they're paying, and none of them knew we did a little bit more research and found $600 billion of financial fees every year,
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and the scary part is people don't even know they're paying th that >> no one knows. >> if you asked 100 people and one person would know, that's our lucky day. people don't know. fee-x is a platt the form that actually analyzes all the fees that you are awarp of and that you're not aware of. in dollars and not in basis points or percentage but how to reduce them. >> this this is using the crowdsourcing theme that waze operates on, right >> crowd sosourcing is an amazig method of collecting data that otherwise is not available i would consider crowdsourcing as a way to collect data
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it is being used by financial institutions that want to create more transparency. and wants to believe in that message. in reality when they are using this platform, helped to even verity more users into their customers. it turns out to be everyone wins with transparency. >> you're a starter of companies. is it a more difficult environment or easier? >> it's always hard. it's always the same you it tell someone about the idea and say it will never morph or they don't believe you that this is a real thing and then you go and raise capital. and even though you have done that multiple times before, it's always hard. >> you have been in the front row of a lot of startups
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what do you think of tesla >> i'm somewhat involved with the power makers when you look at what tesla did marketing wise in the u.s., this is absolutely amazing. when you look at the offering, the offering is amazing. it's amazing it's not just the product, not just the car but also the overall offering so lifetime warranty of everything in reality when you think about it, it's not a big deal. people that are buying tesla are going to replace that to the next model after two or three years so what's the big deal to give the lifetime warranty they're not going to have that car forever. so i really like the offering and i think in general the most amazing entrepreneur on the planet today >> i asked levine about the next potential area to be disrupted and he said medical services
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medical services costs five times as much as elsewhere in the world. if anybody can solve that problem with an app they are welcome to the idea. he has too many ideas to figure out right now. meantime we will be following the uber news coming out fast and furious.
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secretary of state rex tillerson meeting with the top diplomat in washington clarifying his country's stance on neighboring qat qatar. >> there is no blockade of qatar. the ports are open, the airports are open we have denied use of our airspace and this is our sovereign right. only limited to qatari airways orca tarry-owned aircraft, not anyone else. the seaports of qatar are open >> creating a safe tan, figuring out a way to increase the p pigment in human skin cells without using uv rays. darker pigments, that's why people with fair skin are much more prone to skin cancer. spain's prosecutor's office says it's filed a lawsuit against the soccer superstar cristiano ronaldo for defraud
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welcome back tax reform on capitol hill and the question we all want an answer to is when, if, will it get done joining us is mark meadows who is calling for a formal plan by the end of july or calling on congress to cancel its august summer recess. welcome, congressman thank you very much for joining us >> brian, great to be with you thanks so much >> have you gotten any traction? people like their vacation days. any traction with the concept of get it done or stay in d.c. and not go home? >> you know, we've gotten a lot of traction among your viewers who believe that's not a bad idea it's still not catching on here although i would say the majority of the freshmen class seem to be backing that. we need to get it done
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i believe that we can get it done in july, but if not, we need to stay and be about the people's business and make sure we get tax reform and tax cuts done make sure they're retroactive and be serious about puttinging something on the president's desk >> we hear a lot, congressman, we want, we hope, we are optimistic not we're doing or we're going to get it done tell our viewers and our audience and your constituents how far along the actual process is of physically drafting a bill, putting words to paper >> yeah, i think the committee has done a lot of great work chairman brady has been working for several months i think there's really one stumbling block that a lot of us are divided on, the border adjustment tax and where you go with that. if it were to be whipped today there's 70 to 80 votes against the border adjustment tax. so our position has been let's go ahead and get to something that we can all agree to and
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have that legislative text here where we start debating what needs to be and what doesn't need to be in. but there's been a lot of work i'm not on the ways and means committee but i can tell you not only are they working on legislative text but we in the freedom caucus are looking at our own text we figure it's time we have a good debate among competing ideas and get serious about passing it i think we have to get this passed no later than september to make sure it gets done and is retroactive for this calendar year >> congressman, it's becky quick. i commend you all on this idea of sticking around through the break to see we're going to work this out i wonder if it's time that's the problem here it doesn't seem not enough time as much as so many different views and opinions on this do you hope to just wear people down by making them stay through the recess and eventually break somebody >> becky, that's an excellent
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point this is time to make a decision now i left a meeting with the speaker. a number of us were meeting with the speaker. this is not a fine wine. it doesn't improve with time it's time we make critical decisions so the markets understand, where people on main street understand we want to put money back in their pocket and if we do that and get serious about it, then it's all the nuances of what do we include, what do we not include we came out with four different points we think good tax reform should include, reducing rates down to 20%. another is repatriation, another is maybe not full and immediate expensing but accelerated expensing and then, lastly, increasing that standard deduction, doubling that to make sure we get good gdp growth. >> i want to thank you for your time good to see you. >> thank you, becky.
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up next, move over silicon valley why miami is the next hot tech squi hub ahead when "power lunch" comes right back.
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entrepreneurship and business growth in this area miami beach mayor levine joins us now thanks so much for joining us. you've been mayor since 2013 and you recognize the importance of startups what do startups bring to the miami beach community? >> it's about invasion, creating new companies, jobs. i'm a fellow entrepreneur. built my companies in it miami beach. seeing all these entrepreneurs here, truly this has become high tech bringing everyone in, funders, investment, and some of
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the companies that are home grown right in miami. >> and you're trying to connect with other tech centers, telling me about a direct flight, right, from here to tel aviv. >> we worked on it hard, met with and convinced them. we have a nonstop flight from tel aviv to miami beginning in november and, of course, israel is a startup nation. we want florida to be the startup, the startup state. >> the president is going to be in this area on friday, potentially to announce the roll back of some of the obama administration policies towards cuba how is that going to go over with your constituents what are you expecting in terms of reaction? >> the latest polls show that over 60% of cuban-americans want to see a combination of engagement we all want the same thing we want the people of cuba to be free, to have human rights the question is how do we get there? we have a choice you can either have russian or chinese naval vessels in the harbor or have royal caribbean, kacarnival and nor wej cruiseships. i think we want to invade them
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with the velvet navy, let's continue with what we know works. >> speaking of tourism, i had the pleasure of speaking to steve wynn he said the trump administration has been fantastic for business. businesses feel more confident in terms of having conferences, et cetera, feel more confident to travel. are you seeing that sort of impact on the miami beach area in terms of president trump bringing about that willingness to spend >> unfortunately, i can't tell you i attribute anything to president trump. i attribute it to this amazing place we have, this low tax state, this incredible city. we're dealing with sea level rise he has mar-a-lago on the ocean getting out of that paris climate agreement didn't make a lot of sense we need help, federal help unfortunately, he's ignored it and seems to be going in the opposite direction we hope he continues to go forward for once >> brian, back to you. >> melissa, thank you very much. you know that bitcoin has been on a tear, but here's a
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question could you actually live off -- no credit cards, no cash, just bitcoin. seema tried to do it for one week is she still alive next. the soup of the day.
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[ gags ] i love the combination of gummy bears and meat. it's payback time gru. bratt has the girls. [ shouting ] ♪ so bad ♪ so good that i'm so bad... ♪ momma's coming girls. [ minions yelling ] hey. are you okay? [ minion babble ] despicable me 3. rated pg.
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welcome back to "power lunch. bitcoins been on a record run. and top of a conversation here at the emerse conference even ber tainter pitbull weighed in >> i had my eye on bitcoin >> are you in it >> no i'm not to be honest with you. i truly don't understand it to this point i want to know more about it but it's amazing what they're doing in a virtue wall world >> so, how real is bcoin, can yo actually live off of it. >> you take bitcoin? can i buy this with bitcoin? >> i do not know what -- >> do you accept bitcoin >> no. >> new york city may have thousands of restaurants but only a few accept bitcoin including the village here in the lower east side.
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may i check out with albealbert? crest right up there and there we go. transportation also a challenge. ideal taxies and sub ways don't accept bitcoin there's another option buying credit through a third party ran out of house forgot to put on dee ode rant. i went online and bought a bitcoin through cbs. i found a guy online who was willing to sell me a metro card in exchange for bitcoin. >> it's a $20 metro custody. >> it sounds like a great deal, probably isn't i just bought a metro card using bitcoin. i'm stuck using french food again because the only thing we have found accepting bitcoin in this neighborhood is a french
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restaurant there are no bars that accept bitcoin in new yorksy. i like having options and kr this bitcoin channel my options are limited. all right all in all it was a challenging week and not to mention expensive. i spent on average 40% more using bitcoin over dollars many experts will tell you bitcoin's true value is not in the currency but in its blotching technology which could change the way we vote >> when was the last time anybody could tell you that they were confident that a voting system was completely secure and completely fair? the votes were i refutable all of this is possible in a block chain world. >> the idea is that block chain is so advanced it will be harder to hack. guys in general, i'm happy this bitcoin channel was over
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>> have you used it once since this entire week was over? >> i have not but i still have $40 worth of bitcoin left. >> french restaurant >> i know a french restaurant if you're free. >> here's the problem with bitcoin is the probability it is not a currency but an access your task is to wonder around with a cold coin and see if you can use it why would a metro chance accept it when it could be 20% more or less next week are you up for the gold challenge? >> i'm always up for a great challenge brian, and i think you make a great point the real value is not in transacting with it but in its technology what it can do for elections and not just future voting but also the medical world and personal identity the experts say that will create much more use and value for
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block chain going forward. >> ill tick you up in the gold challenge if you're supplying the gold >> i never said that i'm the idea man not the money man. >> you should also keep in mind that bitcoin is starting to become a very popular wedding gift >> registering bitcoin >> yeah, one day when i get married bitcoin maybe brian. >> i got you a crew set pot or bitcoin, there you go sold self jegss is in the hot seat, the attorney general getting ready to testify before the senate intelligence committee. we'll bring that live when it begins so that i can take my trading platform wherever i go. you know that thinkorswim seamlessly syncs across all your devices, right? oh, so my custom studies will go with me? anywhere you want to go! the market's hot! sync your platform on any device with thinkorswim.
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only at td ameritrade
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our 18 year old wase army in an accident.'98. when i call usaa it was that voice asking me, "is your daughter ok?" that's where i felt relief.
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we're the rivera family, and we will be with usaa for life. i'm becky quick here's what's on the menu today jeff sessions in the hot seat. we'll burden of proving that to you live plus a divided streak it is 2 to 14 and against trump. we have the exclusive on the survey ahead game on, forget the gafangs, the gaming stock was on. that stock is up 51% this year "power lunch" second hour starts right now.
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all right let's get a check on your money and investments on the see my tuesday here. the investment are kind of hot the dow is up 82 points. the nasdaq up a little more as well it is drugs, disc drive and dice at the top of s&p 500. we'll talking about western digital and wynn resorts this hour we are waiting for attorney general jeff sessions to testify before the senate intelligence committee all about the investigation and russian interference into the election it's getting a lot of attention across the world the question is, is all this attention also stalling the agenda and maybe even hurting the economy? steve liesman asked that very question in his latest fed survey >> thanks very much brian and exactly that, 55% of our
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responders say the russian investigation is hurting changes to economic policy now, 47%, these are all different questions, 47% says the russian investigation is not a threat to presidency 71% believe donald trump will be able to complete his four year terms but it is hindering economic policy. as you said before, it's 2 to 1 in favor and 2 to 1 against when it comes to donald trump we asked this question, do you approve or disapprove the job he's doing as president? 41 disapprove, 20% approve i think the reason is because they really approve of his economic policy except for trade. how about the outlook for growth -- next policy, oh it's up there on the screen 251 is the outlook for dgp for 2017, that is down a quarter
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275 for 2018 down to 245, down by 30 basis points look at the next screen. look at what happened when we asked people how much have you boosted gdp since donald trump was elected. it's barely registered for 2018. it was at 40 basis points for 2018 now it's down 20 basis points what happened is the expectation for policy, if it happens at all for fiscal stimulus has now moved into 2018 and gone from 2017, becky. >> steve stay there we're going to talk more about this. we're going to bring in larry kudlow and brad mcmiller larry what do you think of the approval versus disapproval ratings when it comes to donald trump on the economy and what he's doing with his policies >> i think he's always had an advantage on the economy and i know a lot of people that may not like him, but like the idea of tax reform and regulatory
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reform and infrastructure. i think that shows up in all the polls, and steve polls actually the voting is 2 to 1 i still believe the tax cut this year is possible, a trump hated tax cut, take what you can get reagan use to say give me half the wealth now i'll get the other half later repatriation, low corporate tax rate whatever, 15%, and new investment, probably put infrastructure in there and graft it on to the healthcare reconciliation bill. that's what we're trying to sell to the west wing >> because healthcare by itself would be no problem to pass. >> i think these tax cuts by themselves would be easy they should have got therein if the first place but you can do them both but you have to pair down the taxing. >> or you got to have your own bill we should rerun that 1974
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schoolhouse rom, i'm just a bill if you're a small bill larry you need to attach to a bigger bill. you need to hook on to something or you've got no home. >> that's my argument. >> do you believe then either a, we can get a giant stand alone bill or are we going to need something bigger like healthcare for tax reform to latch on >> well, i think healthcare's going to be fine, okay, i think the senate is moving very nicely i think if that's the case you're going to get a quick conference and it's going to go to the floor, back to the senate for reconciliation what i'm saying is, hey i agree with you don't go for everything on tax cuts right now you kind of have to wait until next year or something for broad base tax reform individual race, limits deductions. i'm a steve forbes 20% tax guy but i don't think we're going to get that in the next couple weeks. there's so much agreement about
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our three easy pieces, just put the business tax piece -- by the way it's a wage earner tax cut that's the idea and put that on to the healthcare bill and no summer recess until they do that no vacation at all. >> let's talk about market's expectations is the market anticipating that something's going to happen and if the market does happen does it come down or if something does happy does the downside go up >> the narrow on the trump administration has been so negative we're not going to do anything and nothing's going to get through -- >> you're been reading the news. >> i have occasional if you look at the dodd frank bill and financial proposal you don't have to do a lot of stuff for a regulatory action. it can help from a regulatory
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perspective we can get a good thing here >> most of regulatory stuff will not neat legislation i want to put a plug in for jeb and his financial act. what he's saying is, higher capital requirements, which is the safer bank right, in return for less paperwork and regulation that's his bottom line i think the guy's dead right i think i was arguing with steve liesman one time that that was going to happen and it's right in the bill -- >> it's not going to happen. >> the administration's points saying the same thing, it is beginning to happen. the other thing i'd really like is they're fixing up this goofy protection bureau that's now going to reside somewhere in the federal government, not in the federal reserve, they would be subject to appropriations and they can reset like the fcc.
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have a couple commissioners and chairman is subject to fire. >> let me bring all these amazing animal spirits back in the pen and talk about why we're here here's the thesis you proposed in your federal survey i think, which is if you believe that say, 5 or 10% of the stock market scheme is because of an anticipation of a tax reform bill, and if you believe that russia and this whole thing with comey and everyone else is going to derail tax reform, then should you believe that the market will then fall -- >> what we've seen is all the surveys leading up to it all the stimulus larry's talking about completes off for 2018 more and more of what people think is behind this market is real corporate earnings and real corporate fundamentals we're growing 2% there's satisfaction with that in the economic's atmosphere on wall street.
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give me 2% extended don't pull me back up to the this up and down >> 0% of the dow is 21.18 points of the fax reform association. >> at this point i think it's true when the republican administration came in, that wa hope and animal spirits and the balloon has been slowly deflated, but we'regetting better earnings and faster growth so even as that bubble goes down the fundamentals have got.better and right now i think we're in a good place >> i agree with steve on that point. i think 2% growth we should and will do a lot better if we restore incentives for capita formation and business therefore productive and therefore wages we cannot be satisfied with 2%,
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america's always done above 3 for a long time, we can do better i think the trump risk on that has gone up a bit. >> i'll take you through 20 years and find this magical 3% >> well i'll take you through the numbers -- >> if you take it from 1990 forward you're not beginning to find that 3% >> i'll let you search for gold post so you'll try to knock down my assertion the way most economics look at it is the really -- >> not trying to knock down your assertion. >> 1950, john cochran did this work on this, so many smarts academics have done the work, i'm just saying 1950, 2000, 3.4% after a year inflation that's a long time since 1994 you're including this soggy 15-year period because we've had over bounds u.s.
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government direction policy planning and regulation. >> we also have dem democratics. >> let's be clear -- >> respond to my colleague from kentucky in the following way -- >> the horrible kudlow >> the government has been remained a higher percentage of the economy over that period of time >> that's what they do i'm just saying it's what they do >> there have been fundamental changes in the economy, it's not the economies in the 1950s and i'm thankful for that in a lot of ways we have a much older economy, people and living longer and for reasons unclear, i don't believe anything donald trump, barack obama and will hillary clinton can do about productive. >> well you're wrong, read a great book jfk and the regulation. >> have you wrote that book. >> that's all i'm allowed to say
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the producer's screaming at me i've made my point >> paul, our producer is not screaming at you that's what happens in our ear folks, we got to go. >> now he's melting back there >> we give his home address on the air next time. larry you're sticking around >> i'll be back. >> for attorney general jeff sessions thank you guys very much in the meantime, a lot of headlines passing on uber in the last hour. an investigation coming out about the internal corporate deidra we've given you enough time to sift through it. what other nuggets have popped out for you? >> uber's ceo and no founder will be taking a leave of absence from the company that he largely built. in a memo to his 14,000
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employees, no time line of when he's coming back but deh say during this period the leadership team, my directs will be running the company i will be available for the strategic decisions but i will be empowering them to be bold and decisive in order to move the company swiftly. i'm hearing from the source that leadership team will be uber's three general managers as well as francis fairway who came on from law school. and leah hart man's who's been playing a bigger role as she came on. we also have been getting a long list, 14 pages of long recommendations from the holder investigation. ten in total many of them have lots of subrecommendations some of the major ones we pull out review responsibilities. also fined the ceo to focus on day-to-day operations, as well as elevate, the head of diversity, that profile.
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we know they've made high-profile hires in the last week another one that stood out, reformulate, uber's 14 values that the ceo himself wrote we're seeing a big step back and guys also some changes coming to the board, a in dependent chairperson so that could ultimately diminish some of the ceo's power to make decisions. >> thank you nmt in the meantime, here's what's coming up on "power lunch" the golden state warriors celebrating another nba title. with the nba and disney be celebrating the ratings. more coming up and video games stock on fire, yesterdayive ea, today the ceo of take two will join us plus we are waiting for attorney general jeff sessions to testify in the senate hearing. expected to begin in about 20 minutes from now when it does i'm going to bring it tu.o yo the world's eyes are watching.
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back with "power lunch" after this agent gru, you're fired.
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[ gasp ] if you fire him, you're gonna have to fire me.
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do you really wanna do that? uh, do ya? [ screaming ] well, i guess she did. we're going to be fine. i want to help since you don't have a job. i got two whole dollars. awww. minions! we're going back to villainy. [ cheering ] [ evil chuckles ] so, you're villains now? [ shrieking and chuckling ] i mean hello sweetie. despicable me 3. rated pg. . last night the golden state warriors won their second title in mba years they beat the cleveland cavaliers 29-120 kech durant who was just unstoppable, named mvp he hit a pointer in the first quarter. he was falling away and of course it wins
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it wouldn't a slam dunk with the ratings, julia boarston loofr at the e-3 ex koe in la julia how big were these big numbers? >> they were big brian nba finals on abc last night showing the highest game ratings since 1998 that game vibrating of 13% from last year and the year before. and last night's game was the most streamed nba finals game five ever. speaking of streaming games, we're here at e-3 the video game conference and everyone's talking about streaming video games. i'm joined by the ceo take two it's kind of fitting that you're here because take two has a partnership with the nba for e sports how successful is that partnership and did the huge ratings help boost interest in your gaming with them?
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>> very successful we haven't watched yet but anything is possible we're working closely with the nba to develop what would be the first competitive gaming league based on a real professional sport. >> you're going to be streeping it online, also your looking for teaming distribution >> we haven't established yet the form of distribution we'll take the two tournament we had were streamed a twitch. >> how how big of a financial opportunity is e sports in general for take two >> the e sports business is still a multi billion dollars dream. right now virtually the entire business generate rev for legend to the overwatch for us our new league is a wolf development opportunity, it's too early to say it's up we are going to have a season in 2018, 17 teams are
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participating, and because nba is a beloved franchise we think it's a good fit. >> how are you going to maintain that stock momentum? >> well, our view has always been if we do the right thing and deliver the market will take care of itself for a minute i was asked a -- the stock isn't reflecting everything we're doing the market tells the truth at any given time i said that when things weren't going so well. we know that, we never take anything for granted because we say it's successful that doesn't mean it will be we have to earn it every single day. >> i hear you been talking about xbox what is that like for you and your games >> exciting as that is to offer more capabilities, the back ward capabilities are also relevant, it remains to be seen how the
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platform does but any innovation is good. i wouldn't call it a new console cycle i think it is part of the generation >> sony playstation four has sold a million -- how important is br going to be? >> well, so far it's a business that has a lot of promise and excitement around it but doesn't have a lot of revenue associated with it. we've expressed that view before, we like it, it's exciting from a development perspective, it's exciting technically, consumers have to be excited for it to be relevant to us. we have put out carnival games, we had an mva, er experience and we may have more to come as that market develops. >> still early days. i'm so sorry we're out of time thank for joining us ahead of you e-3 week here. guys back over to you.
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folks if you worried the recent technology is only the beginning you should move into gold maybe that's the question. it's up 3% in the last month, "trading nation" is next attorney general jeff sessions is styiteifng in the senate more when this begins. stay here we'll be right back.
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time now for "trading nation" today. taking a lack at gold which is down 2% in a week. craig johnson, and biloba rook bill i'll start with you gold looked good for a while, lost 2% this week, where do you see gold going from here >> i'm a -- with gold. the question is, is gold going higher because of fed, i don't think so i think there's a little more downside to see from here. and listening to every analyst out of them shlgs nine out of ten think we're going to see a dub beneficiary height tomorrow. dub can see more pressure but there's a line below 50.
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so i'm looking for gold to get down to there. i don't think it could be the fed to send gold higher. i think it's the most honk ish and expected fed to get the market a little front pi and bring more volatility into the market going forward and goldb take notice. >> craig, he's speaking your language throwing out things golden cross was for five years do you think it hit sort of a double bottom. what's your long-term chart view on gold? >> brian, i love it when we get other individuals talking about technologies and that sort of thing. from my perspective we're coming up to a downtrend resistance line at 1200 that's the line off the highs, we saw it back in 2011 all we've done multiple times is run up into this and fail at it. if we breakthrough this level i think it's going to happen during a bigger pull back in the
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market, which i'm not predicted at this time i don't think that's going to happen right now i'm not a fan on being in gold at this point and time and frankly i'd be looking to produce positions. >> okay. different point of view there. looki looking at some of the the same thing. bill and craig we'll get you back on. for more trading nation go to that website is available globally from what i understand. the big hearing we're waiting for is about to start. jeff sessions appearing on capitol hill to testify about the investigation into the alleged russian in the election. set to begin in just minutes stay with us we'll be right back
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