tv Power Lunch CNBC July 13, 2017 1:00pm-3:00pm EDT
how would you describe it today? what about the dinner tonight? is it going to be a dinner between friends? >> translator: well, regarding climate, well, we have a number of disagreements which are in particular due to the commitments taken by president trump vis-a-vis his -- during the presidential campaign. so did i i'm aware of how important that is but we therefore talked about our disagreement and we actually discussed the matter even before president trump reached a decision next issue that should have an impact on the discussions we're having on all other topics, no, absolutely not this is the reason why we share the same views and some major common goals on many other topics or all other topics which
we've been discussing today and which we shall move forward together next, and of course president trump will tell you about it, but he's made a number of commitments and we're going to be working together and my willingness to continue to work with the united states and president on this very major topic. i understand that it's important to save jobs that being said, we shall lead the united states of america work on what is its road map and continue to talk about it. so today there's nothing new, unprecedented. otherwise, we would have told you about it but i believe there is a joint willingness to continue to talk about this and try to find the best possible agreement. as far as i'm concerned, i'm very much -- i remain extremely attached to the framework of the paris accord which has been a major international breakthrough and it is within that framework
that i'm working on priorities including the european union's lastly, as you know, i never very much want to comment who we are and what we're doing personally but i can tell you that this evening at the eiffel tower it will be a dinner between friends because we are the representatives of two countries which have been allies forever. and because we've been able to build a strong relation which is dear to me because it matters a great deal for both our countries. it will therefore give me great pleasure to have dinner with you tonight. >> i think that i can reiterate. we have a very good relationship, a good friendship, and we look forward to dinner tonight at the eiffel tower. that will be something special and yeah i mean, something could happen with respect to the paris accord we'll see what happens
but we'll talk about that over the coming period of time. and if it happens, that will be wonderful. and if it doesn't, that will be okay too but we'll see what happens but we did discuss many things today including the cease-fire in syria and we discussed the ukraine. we discussed a lot of different topics we briefly hit on the paris accord and we'll see what happens okay yes, ma'am go ahead >> thank you mr. president, your fbi nominee said if someone in a campaign got an e-mail about russia like the one that your son don jr. received that they should alert the fbi rather than accept that meeting. is he wrong? also, were you misled by your team in not knowing about this meeting? and mr. president, thank you very much. you have heard president trump say that it may have been
russia, it may have been others who interfered with the u.s. election is president trump taking a hard enough line on russia as you see it merci. >> well, i'll start off by saying, first of all, i believe that we will have a great fbi director i think he's doing really well and we're very proud of that choice i think i've done a great service to the country by choosing him he will make us all proud, and i think someday we'll see that and hopefully someday soon so we're very proud of him as far as my son is concerned, my son is a wonderful young man. he took a meeting with a russian lawyer not a government lawyer but a russian lawyer it was a short meeting it was a meeting that went very, very quickly very fast. two other people were in the room i guess one of them left almost immediately. and the other one was not really
focused on the meeting i do think this. i think from a practical standpoint most people would have taken that meeting. it's called opposition research or even research into your opponent i've had many people -- i've only been in politics for two years, but i've had many people call up. oh, gee, we have information on this factor or this person or frankly hillary. that's very standard in politics politics is not the nicest business in the world but it's very standard where they have information and they take the information. in the case of don, he listened. i guess they talked about, as i see it, they talked about adoption and some things adoption wasn't even a part of the campaign but nothing happened from the meeting. zero happened from the meeting and honestly, i think the press made a very big deal over something that really a lot of people would do. now, the lawyer that went to the meeting, i see that she was in the halls of congress also
somebody said that her visa or her passport to come into the country was approved by attorney general lynch. now, maybe that's wrong. i just heard that a little while ago. i was a little surprised to hear that so she was here because of lynch. so again, i have a son who's a great young man. he's a fine person he took a meeting with a lawyer from russia. it lasted for a very short period and nothing came of the meeting. and i think it's a meeting that most people in politics probably would have taken mr. president? >> yes to answer your question, i would not -- >> [ speaking foreign language ] >> domestic life >> what a good answer that is. >> and i do believe that both of us have direct relationship with
russia president trump had two hours -- more than two hours meeting with president putin during the past g20. and myself, i had two very long meetings with president putin. the very first one in versailles and the second one during the g20. and this relationship is very important. we have a lot of disagreements we have a lot of discrepancies obviously with russia. but in the current environment, especially in middle east, it's a necessity to work together, to exchange information, to share disagreements and to try to build solutions. so that's my relationship with russia and we don't have obviously the same relationship as the one with the u.s but that's a long-standing relationship with russia as well, and i think it's important that both of us have direct discussion and contact with president putin. >> one of the great things that came out of that meeting, by the way, even though it's not part of the question, was the fact we got a cease-fire that now has
lasted for i guess, mr. president, almost five days. and while five days doesn't sound like a long period of time, in terms of a cease-fire in syria that's a very long period of time and that was a result of having communication with a country during that five-year -- five-day period a lot of lives have been saved. a lot of people were not killed. no shots have been fired in a very, very dangerous part of the world. and this is one of the most dangerous parts of syria itself. so by having some communication and dialogue we were able to have a cease-fire, and it's going to go on for a while and frankly, we're working on a second cease-fire in a very rough part of syria. and all of a sudden you're going to have no bullets being fired in syria and that would be a wonderful thing. mr. president, you have a question >> [ speaking foreign language ] >> translator: third question from bf mtv.
a question to president macron you went to lausanne in order to support paris bid for the olympic games, and on this occasion you somehow criticized president trump's policy without naming him you said that france made a very clear choice to leave its border open and not to build walls to protect its people do you condemn the muslim ban and the building of a wall between the united states and mexico regarding syria, as it was just mentioned by president trump, is france ready to talk directly with bashar al assad in the negotiation that you mentioned >> you've mentioned a friend, that said paris was no longer paris. you implied at the time paris was not safe anymore you've also said that france and germany are infected by terrorism and, quote, it's their fault because they let people
enter the territory. those are very strong words. would you repeat them today? and do you still believe that france is not able to fight terrorism on its own territory thank you. >> you'd better let me answer that one first that's a beauty. he's the one that asked the question that wasn't even one of my picks. you know what? it's going to be just fine because you have a great president. you have somebody that's going to run this country right. and i would be willing to bet because i think this is one of the great cities, one of the most beautiful cities in the world, and you have a great leader now, you have a great president. you have a tough president he's not going to be easy on people that are breaking the laws and people that show this tremendous violence. so i really have a feeling that you're going to have a very, very peaceful and beautiful paris. and i'm coming back. you better do a good job, please otherwise, you're going to make me look very bad
>> and you're always welcome >> thank you >> [ speaking foreign language ] >> translator: regarding the first question, like i said, i believe the discussions that we've had today is the proper answer to terrorism. and the right answer is strengthening cooperation between our services and neverending fight against terrorists no matter where they are. this is what i was referring to. this is what we're working on actively together. so in this respect there is no difference and no gap between the french and the american positions. when i have something to say, i say it clearly and i do say who i'm aiming at. and when i referred to those who've been my opponents in the french political battle, i also mention the names. so let us not mix up everything.
and regarding the fight against terrorism, i think that the right approach is to have strengthened cooperation in the field of intelligence. it's also to be working together on all the theaters of operation where we are and i think the decisions we've reached, they will enable us to do more. next, your question regarding bashar al assad, which is an important one. let me put it simply indeed, we now have a new approach of syria. because we want some results and we want to be closely working together with our partners including the united states of america. we have one main goal, which is to eradicate terrorism, no matter who they are. we want to build an inclusive and sustainable political solution against that background i do not require our departure.
this is no longer a prerequisite for fans to work on that because i can only tell you that for seven years we did not have an embassy in damascus and still we have the solution next we also have a common red line together with president trump. he intervened before i was elected. and i said it to president putin after my election, no use whatsoever of chemical weapons any use will lead to reaction -- an attack, a reaction against the storage places next we also want humanitarian corridors. also we want to build a sustainable political stability for syria. in order to stick to it we need diplomatic initiative beyond our military actions this is what we've been agreed
upon, agreeing upon, because we want to take an initiative with the members of the security council and the member of countries involved in the process. of course there will be representatives of assad that will enable us to put in place the road map for after the war but there will also be representatives for different positions and people with different backgrounds and we will talk to all of them against that background. one last question. for an american journalist >> thank you french tv of china [ speaking foreign language >> translator: for both presidents mr. macron, you had your first meeting with the chinese president during the g20 summit.
what will france do? how will france cooperate with all of these areas of china? and what do you think personally of mr. xi jinping? >> president, during the g20 summit and how do you want continue to work with china? and what do you personally think about mr. xi jinping thank you very much. >> well, he's a friend of mine i have great respect for him we've gotten to know each other very well. a great leader he's a very talented man i think he's a very good man he loves china i can tell you he loves china he wants to do what's right for china. we've asked him for some assistance with respect to north kor korea. probably he could do a little bit more, but we'll find out we're now work on some trade deals. he's been very nice. he's let, as you know, beef go
back in. certain financing go back in credit card financing and various other things go back in at my request, which is a great thing for our farmers. a lot of great things are happening. but we're going to be working on some very major trade components but president xi is a terrific guy. i like being with him a lot. and he's a very special person thank you. >> translator: over the telephone, then i got to meet him in the margin of the g20 summit in hamburg. early next year i will be traveling to china we've agreed to it so i cannot say that he's a friend of mine or that i know him very well because i very much want to say things as they are. but we had some initial contacts which were extremely fruitful and positive i have a lot of respect for president xi and i would like to say that oaf
the past few month he did express his willingness to have a vision for multilateralism and wanted to commit himself on a number of topics i think that many of us remember his words in davos and he very strongly expressed his vision of the role of china. we have a number of joint commitments including on climate. he's very committed to that. and he told me that he wanted to do more in the field, and i can only be happy about it and like president trump said, they also -- the trade issues and regarding a number of activities, they're all issues there are differences. but a joint willingness to sort out -- sort them out and as members of -- permanent members of the security council we want to work together on all of the topics we've been discussing today and china in this respect is a key partner in order to build peace all around the world
and i share what president trump just said, which is that china is to play a very specific role regarding the rising tension, the growing tension with north korea and it's important that china can play its role in the region in summary, i think he's today one of the great leaders of our world, implementing a major and ambitious reform of china, society and the economy in china and therefore my willingness in this respect as well is to have strategic dialogue, the purpose of which is to continue to talk about the industry, civil nuclear industry, economic matters, and talk about any difficulties we may have together very well. allow me to thank you, ladies and gentlemen, and once again thank president trump for his visit. and i will be seeing him in a few moment in a friendly atmosphere >> thank you very much great honor. thank you. >> welcome to "power lunch."
i'm michelle caruso-cabrera with tyler mathisen and brian sullivan you see there president trump wrapping up his news conference in paris with french president emmanuel macron. first foreign trip for trump since his son released e-mails about a meeting with a russian lawyer np pp in the news conference the president defended his son and said "most people would have taken that meeting," referring to his son's meeting with the russian lawyer who he thought had opposition research on hillary clinton. president trump notably also said very nice things about paris after criticizing the city repeatedly on the campaign trail, calling tun safe. with more analysis we're joined by julian tet, u.s. managing editor of the "financial times," and dan dresdner, professor of international politics at the fletcher school at tufts university also said he wished the president of the china -- or thought he could do more on north korea. good to have you here, lady and sk gentleman. >> thank you >> jill yab no, surprise that instead of being focused on the u.s.-france relationship the questions were on the e-mails.
he says that anybody would have taken that meeting do you think that puts this issue to bed at least for now? >> i certainly do. i think it puts the issue to bed back in washington but the trip for donald trump is a very welcome respite out of the beltway goldfish bowl and it gives him a chance to try to recast the debate and essentially switch topic a bit he's going to be going to the jules verne restaurant in a few minutes' time up in the eiffel tower. he's had a chance to say some nice things world stage. he looks presidential standing next to macron so he must be looking at this trip as an extraordinarily well-timed break from the madness of the recent days >> mr. dresdner, i don't know if you heard the question from the french reporter. he made reference to president trump's friend jim this was something that happened on the campaign trail a lot. then candidate trump would say i've got a good friend jim used to go to paris every year i asked him recently how's paris? he said paris, i don't go to paris anymore, it doesn't look like paris it wasn't safe he was very critical of the
city its ability to defend itself totally walked that back today did he have to do that because he was standing next to macron do you think he really believes it >> who knows what donald trump believes from moment to moment in some ways what he says about jim reflects what he said about the european union also. during the campaign he said that the european union was falling apart, it was failed, and then in an interview with the "financial times" actually a couple months ago said, well, the european union has gotten its act back together despite no evidence whatsoever that there had been any actual change in what the european union had done so essentially what's happened is that trump is now president and therefore any of these kinds of sort of embarrassing forms of rhetoric that his friend jim said, he's just going to completely disown. >> mm-hmm. president xi, the things he said about president xi, mr. drezner, terrific guy, i liked being with him, could have done more, could be doing more on north korea what did you think of that and would it be right to be critical of both of these
leaders when it came to xi jinping not for them to have said something about a dissident dying in prison today in china who had won the nobel peace prize for his criticisms of the country when germany was offering to bring him to that country to offer him cancer treatment? should either one of these leaders have mentioned that today? >> yes, absolutely i would have suggested that both leaders should have mentioned it i wouldn't have expected president trump to have brought it up but i was somewhat disappointed that president macron chose not to mention it i think the more revealing aspect about trump's comments about xi besides the fact that he didn't say anything about liu xiaobo was that he continually described xi jinping as a friend this is a president who clearly believes that personal relationships dictate diplomacy, that if he gets along on a personal level with whoever the head of state is that will lead to somehow better actual foreign relations. and to be sure these kinds of personal relationships play a small part of that but there are fundamental
interests that very often diverge. i suppose the best news for macron is that president trump earlier in the press conference described macron as a friend as well, which suggests that he at least sees him as well as he does xi jinping. >> jillian, i'd get your reaction to that, that president trump sees global diplomacy through a very personal lens but it also -- he also sort of let dangle something that he said something could happen with respect to the paris accords, the climate accords. we'll see what happens was that trump just being the improvisational trump or do you think he really does have something at work there where there may be some deal that could be worked out where the u.s. embraces some if not all of the paris accords on climate change >> well, there are two key things that investors need to watch right now. one is whether he's going to change his mind on the climate change accord with the same speed that he's changed his mind on the attractiveness of paris or not and the reality is that when trump made this decision to
essentially take the u.s. out of the climate change accord he did so in the face of strong opposition from some of his advisers and swelling opposition from a lot of cities and states in america given that in fact his promise to take it out doesn't actually take effect until 2020 he's left himself a lot of breathing room. and so many people are looking to see whether macron can actually persuade him to come back in in some form and then of course a second issue that people are watching very carefully is the question of trade and the threatened steel tariffs. the europeans, particularly germany, but also france have been raising that as an issue with donald trump. so there will be a lot of questions again about whether trump's strong rhetoric earlier, be that on paris as a tourist destination, or climate and trade will once again get watered down >> jillian, thank you very much. we appreciate it dan, thank you as well see you again soon to washington we go now. senate majority leader mitch mcmonl unveiling the latest version of the republican plan to repeal and replace obamacare.
this as senator lindsey graham is working on yet an alternative approach to get health care moving forward and fixed kayla tauschi joins us from washington some developments here in the last few minutes some republican senators saying they're inclined to vote for it and others saying they're inclined not to among other things >> some sentiment about this bill which republican senators have now had about two hours to digest the details of where they're basically saying either they're going to vote for a motion to proceednext week that's a process during which amendments can be brought forth, the bill can be edited, the draft we should probably be calling, it because this is not the final draft that the republicans would be working with in this situation i'm going to tell you about a couple senators who are undecided on this bill notably stern capito of west virginia, senator mccain of arizona, senator portman of ohio high and senator murkowski of alaska
that is a a group that senate leadership is going to have to work very hard to win over and we do know there will be at least two nos on this motion to proceed. senator rand paul, who said yesterday he was a no, and senator susan collins, who said so this morning, unless the cbo score comes out very favorable, which she doubts is the case earlier this morning, just a couple hours ago, senate majority leader mitch mcconnell said that there is added urgency to pass this bill now and said he invited democrats to put forth their own amendments he said the base bill is better but the amendments matter. listen >> it's time to rise to the occasion the american people deserve better than the pain of obamacare. they deserve better care and the time to deliver that for them is next week. >> so next week is when this could come to a head if senate leadership feels they do have support coalesced for this just a quick word about some of the changes which we have been reporting throughout the morning. about $300 billion in affordable
care act taxes will be preserved. with that they will be used to pay for about $45 billion in opioid funding $182 billion for market stabilization at the state level. that's $70 billion higher than previously and then a new fund for exchange-based so-called high-risk individuals. worth noting, guys, as we talk about the business impact of this bill, that last point right there, the fact that insurers would be able to offer skimpier plans for younger, healthier individuals, that's something the insurance companies don't like their lobby said yesterday that would threaten the stability of the markets unless you had broad-based enrollment overall back to you. >> and to your point, kayla, while you were speaking about the official no from rand paul, senator rand paul, as you predicted, was entirely predictable. thank you. >> predicting the predictable. that's what we do best here at cnbc up next, the transports hitting new highs. three best bets in this market right now. plus, is this the future of
transportation not me you're looking at the thing under me the oorko moto srk top speed 85 miles an hour, fully electric, two passengers, street legal a lot of fun we're going to show u yoa little more later on on the show. stay with "power lunch." where to get in... where to get out. if only the signs were as obvious when you trade. fidelity's active trader pro can help you find smarter entry and exit points and can help protect your potential profits. fidelity -- where smarter investors will always be.
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from over 200 booking sites... ...to find you the lowest price... ...on the hotel you want. go on, try something fresh. tripadvisor. the latest reviews. the lowest prices. secretary of state rex tillerson traveling to qatar for a second time to meet with his foreign minister this as he ramps up his first foray into shuttle diplomacy with little sign of progress in breaking a deadlock between cat sxr four arab neighbors that are isolating that country north korean leader kim jong un honoring those behind the test launch of an intercontinental ballistic missile by giving them awards and posing for photos with them. north korean state tv reported that kim said the development of
the icbm changed the international political composition. guatemala's volcano of fire became active this week, shooting ash into the sky and littering nearby communities columns of smoke reached nearly 20,000 feet. it is that volcano's sixth eruption of the year and several northern illinois communities are grappling with flooding concerns after record rainfall hit that region lake county declaring a state of emergency as homes and businesses were surrounded by sandbags to try and keep the rising waters at bay more rain's on the way, too. that's the news update at this hour ty, back to you. >> sue, thank you very much. the die hitting an all-time high today as transports, tech, and financials outperform. fed chair janet yellen also giving a boost to stocks over the past two days after her fairly dovish comments in front of congress. let's bring in the two handsomest guys in the money management business in the
world. john thomas and our friend andrew slimmen not that you're not our friend too, chandran. portfolio manager at morgan stanley investment management. i asked both of you to come prepared with three smart actionable investment ideas. >> yeah. >> i'm interested that one of yours looks like it's playing out today and that is a pair of financials and technology. you think that's a good way to go it's certainly a good way to go today. >> it's a good portfolio management tool, right that they don't work together. when tech works, financials tend not to as we saw early in july. but they both have kind of idiosyncratic reasons to own them i think financials make a lot of sense with what happened with ccar, interest rates going up on the ten-year a lot of dividend yield strategies are going to have to start buying these stocks again. but to marry it with technology and what we learned in july is technology's a little crowded. i think it's not that expensive
relative to history but it is crowded. so when you get those sharp reversals that's when your financials kick in i really like that combination but i also like it with asian x japan technology >> asia x japan technology chinese, korea, taiwan >> that's my third >> that's your third chandran your thought, top thought, was to emphasize developed non-u.s. markets. i read that as europe. right? europe's crowded right now everybody's talking europe i think you talked europe, right? some time ago. >> at some point >> at some point didn't we all. go ahead explain. >> well, it's interesting because we start from the asset allocation we're building portfolios using largely funds for clients. and what you find is people still decidedly have a u.s. bias i want to be clear we're still comfortable with our overweight position in the u.s but clearly from a more tactical standpoint we've seen value and moving more nternational
so developed x u.s., definitely europe, and what you see is the political position has improved. you've seen the economic situation improving. and importantly earnings we've seen a faster acceleration in earning revisions, actually faster in europe than the u.s. >> are there any other countries developed x u.s. -- >> canada, australia our overall portfolio would encompass all of those japan would be a big weighting >> i asked somebody last night at dinner, do you know what the best developed performing stock market is this year? do you guys know greece i've been there during the crisis michelle's been there during the crisis does it tell us anything about the market in maybe a worrisome way that the markets that have been the biggest problems are now the best return markets? >> it's pricing in zero expectations, right? >> is it also pricing in dumb money? >> from our standpoint one of the things you see is if you come out last year and you think about what was going on, there was a huge threat nm people's
mind of the break-up of the euro you saw that not only reflected in equity and the currencies what you're seeing is less concern about that risk and it's playing itself out across the board and people are certainly looking at opportunities where they see relatively attractive valuations, particularly historically >> one of the things that worries me a little about europe su i totally agree with shundrawn. people are underinvested in europe we hear that all the time. the only issue is some of the big stocks that are big parts of the indexes. they're actually not cyclical stocks they're health care, tobacco, things like that be careful what you own in europe because if you're expecting this big recovery but then you just buy the index you may not get it >> you're not uncomfortable with owning u.s. stocks you were very clear about that but if i had an incremental 10 grand to put to work right now for the next two years, let's say, how would you sliver up that pie >> so i would say -- >> fresh money >> if i were saying fresh money for a client i have today, starting proposition, they're
probably widely weighted in the u.s., i'm going to go, say, 70-30 developed x u.s. emerging market now, we have a bias -- >> 30 emerging market. >> emerging market and we have a slight bias also to say can we pick up risk premium. so tilt to size and value. so for instance, tltd or tlte are two tickers of representative etfs that would give you exposure to developed x u.s. and emerging market >> final question for you. the one risk that you are most worried about in the markets right now. >> without a doubt the fed raising rates too quickly because the economy accelerates. and the great way you'll be able to watch that is watch the dollar the dollar starts to go up that's going to hurt emerging markets. that's going to hurt the equity market so i heard out of janet yellen the other day, that is good news because i worry the fed raised rates too aggressively >> too quickly and could trip it up >> did that relieve you on your emerging markets position when you heard what they said about interest rates because they are very vulnerable through rising interest rates. >> it's certainly a relief to
where the sentiment is >> come back anytime shundrawn, andrew, good to see you. >> amazon is not the only player looking to disrupt how you buy groceries. we're going to tell you about a new german immigrant it is a discount chain that analysts say could reshape the entire grocery game even has walmart worried. thna a we mendhat they're doing right. when "power lunch" rolls on. thank you so much. thank you! so we're a go? yes! we got a yes! what does that mean for purchasing? purchase. let's do this. got it. book the flights! hai! si! si! ya! ya! ya! what does that mean for us? we can get stuff. what's it mean for shipping? ship the goods. you're a go! you got the green light. that means go! oh, yeah. start saying yes to your company's best ideas. we're gonna hit our launch date! (scream) thank you! goodbye! let us help with money and know-how,
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it's a new kind of network. xfinity mobile. for a few days every year sun valley, idaho renames itself mogul mountain okay, not really but it does bring together some of the biggest names in media and technology for the annual allen & company conference, which is where we find our own julia boorstin, who earlier sat down with cbs's les moonves. julia. >> reporter: hey
that's right cbs ceo les moonves says despite the rise of streaming video and all those competitors out there that his content business is thriving, both on the traditional side with up-front ad sales coming in better than expected and also on the digital side he says subscriptions to his streaming services both for cbs and showtime are better than projected. >> we're in a very strong position we're getting top retrends dollars, top reverse comp dollars from everybody we're able to sell our content all over the place we look at ourselves as a multiplatform content company. the fact that we would add more content if the right deal was available, we would look at it but frankly, we're playing a very good hand we're in strong shape. we don't feel the need to expand or do anything like that >> reporter: now, moonves dismissed the rumor that cbs is going to buy lionsgate but he did say if cnn became available to buy that they would definitely check it out and take a look at that
now, with jared kushner and ivanka trump here in sunvalley arriving last night there's been plenty of talk about politics. i asked moonves which policy changes would most impact his bottom line. >> obviously, there's talk of tax reform there's a lot of big business things that are on the table that will help all businesses there. whether they come to fruition, we don't know. obviously, it's a more user-friendly fcc than there is before ajit is somebody who's very open to broadcasters, and we like that as well and the trump administration, you know, while adding to business obviously has posed some challenges for our news division >> we'll have more from my interview with moonves including his outlook on the upcoming nfl season that's coming up in the closing bell back to you. >> we'll look forward to that, julia. thank you. a bold call today on a very beaten down but popular name in the stock market it's coming up in "street talk" next plus why an obscure law going into effect in january could
force a huge round of layoffs on wall street and rock the financial markets in a way we haven't seen maybe since the 2008 crisis. thatule d y ranwhyou care, coming up. this bad boy is a mobile trading desk 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. only at td ameritrade
just a few weeks after amazon hoshook up the premium grocery market with its plan to buy whole foods, german grocer lidi is hoping to disrupt it also the story of the little germ immigrant that could >> reporter: it's actually opening day at this lidl store in chesapeake, virginia. this is number 14. there are 100 store locations planned up and down the east coast by next year and hundreds of people were in line this morning to check out these prices >> with the way the prices are, i won't be shopping other places as long as i can get it at lidl's at these prices, i won't be going to the other grocery stores >> reporter: so lidl intends to have price that's are about 50% below competitors. this dole pineapple today is 89 cents. this is an award-winning sweet red wine $2.89. now, we did do a comparison at a walmart that's less than a mile away for eggs, milk, and bread
lidl did win on the eggs and the bread. on milk it did actually match the price. now, deutsche bank analysis used some bigger baskets at various locations. these show that lidl's prices were 15% below kroger, 10% below walmart neighborhood market, 6% below walmart super center and about on par with al dichlt. there's only six aisles here it's about a tenth the size of a normal u.s. supermarket. 90% of the products here are private label. there's a big emphasis on organic produce, meet. there's fresh bakery, a big wine selection. it has its own master of wines that chooses all of them now, this really is the no frills store, but i have to tell you it still does feel quite premium. and that's despite all the efficiencies like a paperless corporate office they also use a lot of natural light here to save on electricity and shoppers weigh their own produce and bag their own groceries. now, competitors are paying attention. kroger has actually already filed a lawsuit alleging that lidl's preferred selection is
too close to kroger's 20-year-old private selection private label products lidl, though, says it's very proud of its own private label walmart says that it's very mindful of lidl. remember, walmart competes with lidl overseas already. there are tons of people here, guys everyone's really into these prices i want to play a sort of guess that price if you guys want to play with me i've got some prosciutto here. how much do you think it is? >> at lidl 4.99 >> $7.99. >> reporter: $1.99 >> what? >> i was closest without going over >> okay. if we're playing price is right rules i'll give that to you. >> am i in the showcase showdown >> reporter: yeah. this is lidl's private label, that preferred selection how much is this mustard >> what kind of mustard is it? >> $1. >> $1.01 >> 99 cents. >> reporter: you guys both lose
if we're playing price is right rules. we're over 69 cents >> you didn't say what kind of mustard it was >> holy smokes >> whole grain preferred selection. >> give us another one >> reporter: which is lidl's -- how about this sam snon it's about ten ounces >> what is it, like smoked salmon for lox and stuff, you foote on a bagel >> reporter: this is a product, it's sustainable all of their fish is sustainable. >> $4.99 >> 6.26 1/2. >> reporter: you guys are getting closer $6.49. that was probably your best. >> pretty good that's right on. >> i'm 3 of 3. >> that's right on it. >> courtney. it's cheap got it thank you. >> do you know why because michelle lives in the city and gets all of her groceries delivered. i do the shopping in my house. >> i pay so much for groceries it's crazy it's crazy it's new york city and that's the way it is. what does lidl's expansion mean for grocers like whole foods
let's bring in karen, grocery analyst at barclays. can i make sure i understand the business model at lidl very, very cheap but with only six aisles far more limited selection. >> correct and very high penetration of private label. >> how is that going to go over in the united states where i think we have snootier shoppers? or am i just imposing my viewpoint on the world >> well, i think there's a couple things. the problem you've had in the u.s. is the american consumer has been trained to not like private label because the supermarkets themselves have been providing subpar private label in order to fuel the strength of the brands because they need the vendor dollars of the brands so it's kind of been this whole chicken and egg. what lidl does is they come in with very, very high-quality private label. i think there's a training process that will have to happen with a consumer for the consumer to realize that private label doesn't mean lower quality and what lidl and aldi are known for is that private label means very, very high quality at very low prices >> so how many items are in a typical grocery stores
skus, i guess you'd say. and how many would be in a lidl? >> oh, i mean, kroger would have 50,000 skus versus a couple thousand 2,000 type of thing. >> wow >> that's a huge -- >> that's the huge difference there. so they have less need for storage, less need for space their real estate footprint is lower. it's easier to stock and keep it going. >> who makes it? >> their sales per labor hour model is significantly more efficient than any grocer, conventional grocer out there. >> do we know who makes the private label? is it treehouse foods? is there somebody -- is there a way to profit off that aspect, karen? >> i mean, that certainly seems to be -- i don't personally cover treehouse. but i mean, that's been the question that everyone's been asking i think you have to keep in mind that private label manufacturing is very, very fragmented in the u.s. and that's one of the issues that lidl will face versus, say, the uk where a private label is fragmented but also flavor profiles for the american consumer are very fragmented by geography.
so getting critical mass in private label is going to be harder with the manufacturers. so right now they're kind of concentrating on the east coast, and i couldn't tell you who they're using for private label, but my guess is they're going to have to concentrate it by geography. >> who is most at geography. who's most at risk or walmart is in a better position than amazon >> what about amazon i guess i will give you an analogy that lidl is making. lidl wants to be the waggaman as traders' joe to whole foods. you really have to thisnk about who those retailers are on sea board. so i think they're really going after ahmad l income customer. i am not so sure it is so much
of a walmart customer. as courtney says, the store looks nice, it looks like a nice store. >> it is brand new and just opened >> big windows and it looks like they're going after a middle chemical customers walmart is not taking it lightly. >> got it kerr republicaren >> it is a car, it is a motorcycle, it is both it maybe the future of urban transportation in the back of my head [ laughter ]
hey, i've got the trend analysis. hey. hi. hi. you guys going to the company picnic this weekend? picnics are delightful. oh, wish we could. but we're stuck here catching up on claims. but we just compared historical claims to coverages. but we have those new audits. my natural language api can help us score those by noon. great. see you guys there. we would not miss it. watson, you gotta learn how to take a hint. i love to learn.
we gave you a taste of this yesterday. arcimoto it is a rank a filing. i assume you flew from morgan. >> we did, we tracked him out. we had the privilege driving yesterday. it was ofa lot of fun >> it looked fun >> how much does it cost >> and how long will it charge, give us the basics >> we want it to be affordable if you get the longer range battery, storage bin, you will get it under 20. >> because you can buy with doors. >> does that include
air-condition? >> you will have an hatch back option >> tell us about the power >> it is really cool >> there is one moving part in the drive. >> we got a dual motor and the motor just have one moving part of the thing that spins zarnd a direct drive of each of the two front wheels it independently controls the front wheel so there is no differential >> cueing in the sirens. >> that's an arcimoto they're chasing. >> it is super quiet >> jesse, the engineer, we had a conversation as we were cruising down the road. >> are most people buying it doors? >> in the sun belt stage, i think everyone is going to get it wide open we live in oregon, i drive it in
the rain all time. northeast, i think you will want fully closure. >> is it power steering? >> it is very direct, i can tell >> power steering but you are directly connected to the wheels >> is a less strong person able to maneuver this >> for r susure >> it is like a boat to turn it, you have to be on the power. >> you kind of had the muscle. these are our protypotypes we are just about to launch our signature series, that's the first to go to our customers we continue to improve the geometry of it >> it is legally tyler and technically a motorcycle >> it is a motorcycle. >> do i have to wear a helmet? >> the helmet requirements vary by states. unlike most bikes, this has dual
har harness fo harnesses for beth passengers. >> this can be dangerous >> slow down >> you look at something like this and my reaction is tippy and you are telling me it is not. >> you got two factors the two wheels of this are in front. this is a very stable configuration and its got two big wheels >> you got all the mass of the battery and the drive train forward and low in the vehicle >> really stable platform for driving. >> there is no potholes in new jersey >> no. somehow you cannot see the bottom we would ride over it and it is pretty smooth. >> what are the tires? >> definitely narrow width and
and his quest to dominate both world. "power lunch" starts right now >> checking on the markets right now, the major average is, well, higher for all three as you see there. the dow industrial is up a 10th of a percent tesaro is down big today cnbc learns the company does not expect the process to result in a deal >> in meantime another big test of the record rally and it comes together investors get a first look of many of the big banks. we look at the challenges of the
second course. bob pisani the stock markets had been holding above and earnings have been improving earnings were negative for s & p 500. technology is 25% and almost of the s & p. you know semiconductors have been on fire and everyone knows this financials are going to be reporting tomorrow the biggest banks are going to have good trading operations, long-terms have not been moved much and that's helping them we'll see moderate improvements in loan growth look at numbers of energy, that's going to move big as well the numbers are terrible of the second quarter last year look at the kbe, we had some
modest move. earnings for the energy companies had been coming down because earnings have been lower because we had oil at 40 to $45 instead of $60 they have been taken the numbers down that's why these stocks have been coming down stocks move to relations to the earning ex peck tapectationexpes we are talking a lot about this including things of a stronger dollar we have not seen it yet, there are some concerns out there. metroplex c janet yellen referenced that this morning the good news, we are seeing more capitol spending and more capital spending and that could be a big boost to industrial to the second half. what about the tax cuts? they'll matter a lot 20% on the corporate tax rate
would add, you can bet that's a big boost as well for the second half of 2017 >> back to you >> deeper into the season. kristine schwartz, it is good to have you here. >> you heard bob's expectations had been going up. is that good >> the one thing bob does not point out. we are at 8% and recessions are over >> we are at 14% in the first quarter, downward trajectory if you pull out energy, he quoted that 600% yearly growth rate earning expectations are cut in half so we are looking at 4% bottom line growth when you pull out energy we have to start asking yourself, is that enough to justify the current rally. that's just the average growth and the average that we have seen over the last few years
to justify a pe that's 17.5 or 18 right now is 4% growth. back half of the year looks fine as well but as we get into q 3 and q 4, those numbers will come down again, about 60% of companies end upbeating. >> a bunch of financials tomorrow >> they are going to disappoint? what do you think? it is one of the strongest sectors in this quarter and about 8% growth. it is not the big banks. really we are expecting low single digit growth and helping that group with an expectations of 31% it is really the ensure that's picking up the entire financials there of the lead industry within financials. >> bottom line, are stocks over priced >> earnings need to justify at that point the numbers -- >> are we close? >> the numbers for the second half of the year is starting to come down a little bit as well
as analysts and providers go >> consumer discretion >> negative 2% >> its retail autos led by autos at this point. bob mentions higher wages. we had fedex and quite a few names reported mentions the negative impact of labor cost. i think we are going to see that a lot more as more and more of these companies formed c bob talks about tax reforms. if we actually finally saw some kind of cuts and practices >> when it comes to the banks, we get down to 20% corporate taxes, that for the banks, double digit earnings overall 2018 with the exception of city groups we know the bank really want that tax reform. i think we need to see healthcare reform next week so we have the capitol to make
that that may further delay tax reforms and that's what they are expecting. >> got eit >> thank you the tale of two airlines today. more passengers. tell us about the miserable areal traffic. >> new pilot contracts from last december and take a look at numbers where he seeing from delta, falling a few cents short of the estimate of a buck 64 a share. revenue just below estimate of 10.8 billion here are the numbers this is what i was talking to you about cost operating margins is 18.4% >> swings positive for the first time since the third quarter of 2014
5.5%, remember they had the pilot contract and the new one, that was a i agrgreed to in decr now we have a few people coming back and saying okay, what kind of impact are we going to see? the margins of 18 to 20% and capacity up 2% but when you look at shares of delta, remember it had moved higher in the last couple of days and that's why today it is under pressure jet blue is the latest airline to say we are seeing positive trends in the second quarter jeff blue is moving higher and it is too cue. it is up 7% year over year they're not the first. >> why is their revenue up so much >> we are seeing it with all the airlines >> demand is running fuller and impact of lower fairs, they're under pressure, it is not to the degree that we saw a couple of years ago. it is a little bit mitigate.
>> all right, phil lebeau. thank you. uber and yandex. the google of russia to create a ride share company uber's hurdles to expand in the u.s. it exit china by cutting a deal with its competitor and now it is ending its cost over three year battle by merging with y d yandex it will span out 120 cities. joining us with more details over the phone is yandex's cfo, thank you for being with us, this is particularly late for your time. you mentioned the deal team on this and of course, are you
confident that the team can get the rest of this deal done and what is it like dealing with uber post? >> certainly amill and travis were involved early on we have worked with the team both in place there with the camera and the phra-- the guys extremely pleasurable and they are fantastic company. i think that the feelings in my ways are mutual. it is a real privilege to kind of explore opportunities with these guys >> and interesting though, i also want to ask about expansion plans earlier this morning, you said you could possibly expand outside of the six countries you are currently in do you see a time when yandex
will be competing in places where uber already has a presence >> it certainly possible at this point we are focusing on the markets that we currently operate. there are other markets that are attract activi attractive as well things work a little bit differently. interestingly russia is one of the place where is it works and does accept cash the right sharing paradigm here is a little different. and you know overtime we can explore other markets. right now we are focusing on providing excellent service in the city where we can operate. >> hi gregg here it is michelle here, thanks for staying up so late in moscow to do this interview >> my pleasure >> are you going to have any access to uber data in people of the united states or other parts of the world
there are different privacy laws in russia. some uber clients worry that somehow there are russian access to the database. is that a valid worry. >> the law is very clear and they have to do with the fact that data russian users have to be stored in russia. that's where it stops. >> okay, then u.s. users, do you have any access to uber's u.s. data in any way or any other countries in the world >> no, we'll not >> thank you >> gregg, if i can jump in again. you mentioned the different ride sharing paradigms in america verses russia, you said the use of cash, it felt very prevalent. explain to us a little bit how we monitor and regular the business and some of the risks that's associated with it of
yandex and youtuuber is dealingh this the risk is fraud. you also have the difficulty in collecting receipt fortunately, the impound amount where we get transactions of the commission we'll be sharing with our drivers so the two met each other so it is not as much of a concern initially, when we started of 2011, ocbviously, al the transactions were cash based and we have to invoice our partners for the commission that we should be collecting. >> gregg, thank you, we won't take up anymore of your evening. we look forward for this development and this new company of what it is called >> thank you new number on president trump's budget cuts, deficits of
the next decades the president's budget would not balance in ten years but the deficit can be smaller lets bring in our senior contributor here at cnbc, walk me through the number, this is the budget being scored here and not the new healthcare bill. we'll get that scored sometimes five or ten days sh >> sure. >> you sure you want to go through this >> larry kudlow. >> the biggest difference between cbo and trump's budget is growth and the revenues that accrued from the growth. >> the cbo is going to be lower. >> free trade. >> the trump's budget is 3%
growth but, having said that, what's so interesting here and i did not notice these until i saw these numbers. the trump's budget spends significantly less than the cbo baseline >> why would they do that? the cbo of their current service lines keep ongoing up and budget reducti reduction. >> there is a big documents. >> i don't have all those details yet. i think some of it is going to
be entitlements and some is discretionary and trump puts a real ax to the discretionary they still go up but they go up on a small amount. >> they adodon't know it yet. >> is it just me, guys >> with all respect of the women in the works there, are they guessing >> no, they have models. >> healthcare is not in there. >> right >> so why bother >> why bother? >> i made dinner with no meat or vegetables or dairy or bread >> that's the key to the exercise how do we get here that we are be holding to this mythical process? >> something which house and senate members involved will tell you tradition is that the worst argument you ever heard
>> traditions. there is nothing in the budget of reform act in 1974 from all this stuff that they created a budget office. they never say you have to use the budget office. that's very important. there are a lot of models out there. some models would agree with trump and some would disagree with trump i get that cbo is one of many models where they don't have a good track record at all. we should not get hung up on this my hope is when the gop comes up with their final products record conciliatio conciliations, they'll use more of the cbo they'll use model that i call supply side incentive. >> some of these are fantastic the trump's budget comes with a deficit to gdp ratio by the last year it was 2017,
2027 listen to this, trump gets 2.9% deficit of gdp cbo based line of 4.3. >> it is really of an important metric to me >> cbo is 91%. trump got it down to less than 80%. once we figure out that the tax rate reduction, particularly the businesscuts, once we get it all figured out and the tremendous growth impact is going to have in fe effectieffe is not going to be all wrong >> we got to get some breaking news >> brian, we are getting some feedback from senators as they had a couple of hours digesting to healthcare draft that was
released earlier this morning. i want to play with you what senator rand paul said he plans to vote no on this draft when we learned of the details ahead of time he's talking about where he feels the sentiment is right now. take a listen. >> we had an announcement of three or four people that knows, and what that seems to me that it may strive different way. the best chance to move forward is to divide the bill in two lets do a clean repeal that's what we promise td the voters and some in vsisted on spending >> he's talking about a plan that he's been working on some time he's talking to nbc's kasie h t hunt we are not sure of who those are in references are. we know that senator susan
collins in maine is a no and we know six other senators from west virginia and ohio and north da dakota and alaska are undecided. we'll keep you posted as some of these vote counts to come in interesting to hear that senator paul says he believes they have the "nono to stop it. we are heading out to lake tahoe. that guy is a pretty good quarterback for a golfer >> he is, he will tell you he's a better golf than a quarterback. he's coming up we'll talk about all kinds of things in his golfing career to the cowboys and his new job in
gig-speed internet. you know what's not awesome? when only certain people can get it. let's fix that. let's give this guy gig- really? and these kids. and these guys. him. ah. oh hello- that lady. these houses! yes, yes and yes. and don't forget about them. uh huh. sure. still yes! you can get it too. welcome to the party. introducing gig-speed internet from xfinity. finally, gig for your neighborhood too. big names from the sports world gathering in lake tahoe this weekend for championship celebrity golf tournament. always, do not bet on charles barkley to win, he's listed at 6,000-1. >> stephen curry is an excellent golfer, he's 20-1. the man who had more time to
work on his game since he retired from the nfl, tony romo. he joins us now alongside with our own dominic chu. >> thank you, i have the privilege to be here with tony romo from lake tahoe >> thank you for joining us. >> thank you for having me >> you got a new job and take us through the transition what has it been like for you and how do you feel the transition is going? >> it is an exciting move. you go from playing all those years and at some point your career is going to end but having something you are passionate about and b, keeps you competitive and just -- not everyone gets a chance to do that it is kind of like a home run. >> you called golf before? how did that play in the transition of golf and football and which do you think that you
like better? >> calling the game? >> yeah >> well, i joked in your press conference for cbs, shawn mcmann, he's fantastic and everyone is asking questions and all kinds of things, are you going to do golf >> no, just football yeah, i will do the maesters ina year or two and no one is there laughing shawn jumps on the line real fast, that's a joke, he's not going the masters. that kind of went without saying quarterback or golfer, which are you better at? >> golfer. we'll see. >> lets talk about the reasons why you made the transition here and you talked about your professional life outside the game why come to an event like this why did you want to be in the golfing circuit if you will.
this is different. they basically bring all their people helping out and they give 40% of their interest of american century back to dif different things and everyone is here to raise money for charity and play golf and get to hang out with a bunch of people that you enjoy to be around >> tony, can i jump in with a question, you cannot be working with a better partner than gym naans. he's the most versatile sport casters out there. how do you prepare for this job? do you sit out in a booth with jim and go and pretend you are calling a game how do you g et ready you are no stranger in getting ready. what do you do to practice and you are not too nice, don't be
too nice thousanow. >> funny you said too nice, the first couple of games i did, words i got back or evaluations from a couple of bosses, you know, we don't have to be quite that critical so that part -- >> so you sit down and call games. >> yeah, there is a lot of little things. there is not an exact cookie way of practice. i was not going to go on the air and lets see how this goes you do practice games and you sit down with jim naans and you go from there from each other and trying to create the energy with it. the opening of the show or how you are going to sit
those are little things that you go through >> we are a business news network, we would be remissed if we did not ask you regarding of your business world. how do you view your profession, how is your financial shaming up and where are you seeing the opportunities and the biggest risks and what keeps you awake at night if at all of your financial future >> well, the s & p 500 lately. just kidding [ laughter ] >> you are pretty good with that >> you know i am an athlete, we are not on cnbc often and telling people how you run your business, it is one of those things where i want young athletes to take an interest in the financial world because we first get into it, you just kind of play football or play sports and you forget about the rest of that and i really think that too many of these kids don't have a firm understanding or foundation on how to set themselves for the
rest of their lives and have the right people and think long-terms everyone thinks short terms in our industry most people play four years and they are done. they should not be running and buy a lamborghini here they need good structure >> you are the favorite this week, three to one odds. we just showed it on power lunch. there is a reason why. 3-1. >> it is actually 2-1 now. i may have gone into change those odds i told you before, i let my friends -- get in there. i may have helped those odds a little bit >> we talked a little bit of the reasons why. how do you feel of the overall big bet on yourselves, yes, you did make a big bet on yourself
>> sorry >> i feel good, i think, you know just playing here and being out here, i bring my whole family out here and my kids and wife and brother-in-law, having them is an enjoyable week and you get to play golf and raise money for charity and you go out and win and you help it. >> tony romo, thank you for squo joining us on "power lunch." you can watch tony and other lee webb lee wecelebrities battlingu on tomorrow and on saturday at 3:00 p.m the fear of instagram's new
story -- analysts does not think many share is going to come to market when the market expires the next month the price putting on it is 22. it is a 30% move here. >> coming up why a lot of pink slips to wall street analysts and raising your invemestnt cost, nobody else is talking about this story but we are, that's next
hi everybody, i am sue herera our attorney jeff sessions and tom price announcing what they say is the largest fraud of u.s. history. more than 400 people were charged and opioid scams >> we are sending a clear message to criminals across this country. we'll find you and we'll bring you to justice and you will pay a very high price for what you have done. >> jimmy carter is being treated for dehydration in canada where he's helping to build houses for habitat of humanity.
the 92-year-old was transported to a local hospital for retreatment and his wife is wit him. jc penney is opening toy shops in all of its stores some stores may even feature a play area. in addition to the clothing you just saw, that's the news update at this hour. i will send it back to you guys. just in time to gear up for the holidays >> my clothes, my 2-year-old, he runs and hospitalizides in them new european rules all of wall street is starting the impact of somebody calls the snippet, too lets walk you through it first, what the hell is it >> it is european go into effect
on january 2018. what does it do? right now fund managers get analyst research for free and they act on it the animalysts get paid of partf that commission. many possible outcomes to this the key concerns for you are these. european regulators enforce it against u.s. firms as well because they do business there if industry watchers are right and it ultimately cuts the value of equity research, it could leads to lay offs. smaller fund companies won't be afford to pay for research that they have to buy the biggest are these. this is why you care >> well, that marks the den eenf
animal lealyst research managers have to buy with real dollars of those analysts idea and leading also of more uncovered stocks the number of analysts dwindles of management costs. s lets bring in spencer. tell us in plain english and why it matters to our audience and wall street. >> thank you for having me it will go in effect of 2018 are a protection and market abuse and increase transparencies one of the keys and controversial aspect is how it will impact the post-gamayments investments.
>> we don't have to get into details of how analysts are paid it is complicated. you are the analyst and i am the fund manager and you give me your fund for free i have to pay you money for this that's going to reduce the value of analyst research by a ton, is it not >> yes, over the long-term there is a good chance that analysts in europe and maybe here could have a wave of lay offs, is it not? there is regulators of the mind that there is an over supply and over capacity sort of water front and traditional research coming from the large break aok firms. >> regulators think there is an over fsupply of research how do they know
>> that's one of the arguments, we would not be paying for if we did not need it. clients are paying for it. it ends up being inducement to trades >> of course, it is an inducement to trade. that's the whole idea. you think every hedge funds on earth does not know that >> they do the expectations is that research that's being produced is very not a high quality and they have a lot of -- >> would this lower the quality. i talked to many analysts about this i had driconversations. >> it is going to result in lay offs and reduce the cost if you are not laid off, your paid is going to get cut >> possibly. >> could it be self defeating
rules. >> this it coming from the printing research and written models that can be a resource >> in a nutshell, what's the abuse or the worry of the european lregulators what are they trying to er eradicate and why? >> trying to reduce the amount of research that clients and missions are paying for. why are our investors paying for it when there should be money going back for refund. >> i know it is a big story. believe me, we'll hear a lot more about this. we maybe a little early. if the number of analysts is redu reduced, and maybe there is too many we'll see many companies left completely uncovered by any analysts 10 and $15 billion company who's going to niemind the shopr who's going to be the watchdogs
at all >> that's right. >> there maybe new sources and alternative data sets and traditional large brokeage firms. in the long run raise the quality of research and provides of a tailor and high quality spencer spinlan. thank you for being with us. i was like what is that. we'll become the cable industry. >> rich people will stay pay for premium contents the archverage is going to get hoaxed >> it comes down to what you can afford >> we'll not have access to that >> we'll figure it out
>> people at home will have few ideas. >> thank you >> coming up we'll go back to lake tahoe of the big celebrities golf tournament and dow transpos rtis sitting high today trading nation is next experience unparalleled luxury at the lexus golden opportunity sales event before it ends. choose from the is turbo, es 350 or nx turbo for $299 a month for 36 months if you lease now. experience amazing at your lexus dealer.
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breaking news, ted cruz is talking about the healthcare bill lets listen. >> i think the way we unite our conference and bringing republicans together is the focus on lowering premiums the bill that was announced today include two critical provisions on lower premiums the first is an amendment that i introduced and pushing for a long time that gives you the consumer the right to choose what health insurance to purchase it is not the federal government mandating what insurance you have to buy but rather you choose what insurance is for you and four family. that'll drive the cost for millions of americans. secondly, it is an amendment that'll allow you to choose s e savings. it will let you use pre-tax
dollars for many americans at an immediate cut of 20% or 30%. both of those are big deals and both are amendments that i introduced >> reporter: what's your message to your colleagues >> it is a deliberate process and it is ongoing right now. lamar alexander and i joining together and bringing together the obamacare repeal and we have been meeting with senators, trying to unite the republican conference the bill today reflects the input from senators across the spectrum it is not the ideal bill that i would like to pass it does represent a bill that reflects the concerns e prexpred across conference. >> is your amendment enough to get to 50? i have always believe of the
consumer freedom amendment is the key to get 50. it unites the conference and produces real results. tl w the way we come together is focusing on low premiums next year and the year after, we had people back home and we'll see premiums dropping 10% or 20%. it is a big win for everyone it is a win for the men that we elected. >> senator, you should completely repeal and go about replacing, what do you the problem with that? >> i have long agreed with that strategy back in january and i urge everyone in writing past the 2015 language virtually of the republicans that i voted for. the republicans decided to pursue a different path. that was the path that i took. this bill i think we made a significant progress expanding choices and expanding options and competitions and reducing premiums. that in my view was an important part of this process
>> thank you >> all right, senator ted cruz talking about progress when it comes to healthcare bill he added the key amendment of the insurance company to offer a skinny pa skinny pack and reduce coverage. they keep on talking to the republicans and talking about the individual market all the time it seems to me the biggest hang up is medicaid >> medicaid. >> they cannot get past that and all they talk about is the individual market that does not seem to the bigger problem >> i believe west virginia senator capedo of her concerns still remains on medicaid. >> other states are worried they're going to have less money. big prop g problem. >> big capita. we'll get back to the golf
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back to cnbc's dominic chu with the big celebrity golf tournament at lake tahoe with special guest. dom? >> reporter: which ear here with the cio of multi-asset strategies at american centuries, the host of this week's golf event this weekend on nbc sports and nbc as well. rich, thank you so much for joining us. >> pleasure, dom, thank you. >> reporter: let's take a step from where michelle left this off before the commercial break. we heard ted cruz talking about what's happening in washington how important is tax reform and health care reform to the overall wall street and investment agenda? >> oh, i think it's critical right now stocks are trading on the hope and prayer of tax reform and tax cut which, of course, have to come connecticut nant with the health care
reform very little else propping up stocks we have decent earnings and basically interest rates rising, possibly slower than previously anticipated. valuations not looking anywhere near as attractive as they were a couple of years ago and the dollar starting to fall precipitously, down 10% against the major currencies i think one of the few things propping up the market at this point is the white house's policy agenda and the hope for results. >> reporter: a lot of comment among investment circles about what can take down this market, it's a market that's been called teflon, nothing come out of the geopolitical or economic data has had an effect on the market. what can take this market down >> there is some kryptonite here any complete derailing of the white house agenda, the policy agenda, in particular the tax reform and tax cuts, especially on correspondent rat side will be a derailer for stocks the other element that could come out, inflation. if we see any surprises on the upside
i'm not saying it's a likely scenario but if there's any surprises on the upside that forces the fed back to a more hawkish position, higher, mastersest, interest rate moves. not good for the markets we saw a hint of that a few months ago. >> where are the opportunities right now? people talk about stretch valuations are there still places that you can find value in this kind of a market >> no question we've been overweighted in many of our multi-asset strategies overseas, the developed markets in particular and though the economic growth is slower than ours they are arguably bottoming out. the strength of the foreign currencies helping u.s. investors and we continue to be overweighted there that's where the best prospects are for equities we're also well diversified in income areas as well the high yield fund has done very well. solid income and total return. >> rich weiss of american asset strategies guys, back to you. >> thanks very much, dom you can watch the celebrity golf tournament all this weekend and tomorrow on nbc sports network
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estate and art robert frank knows the details. >> reporter: ken griffin now holds the record for paying the highest price ever for a work of art n.2015 griffin bought this piece called "interchange" for around $300 million. at the time it was the second highest price ever paid for a work of art after a gaugin that sold for over $400,000 that actually sold 210 griffin moves to number one. he holds the record for the highest price ever paid in the u.s. for a home. in the 2015 he paid over $200 million for three floors of a new manhattan luxury tower 220 central park south 18,000 square feet and that price is before he builds it out. bought the most expensive home in miami, the penthouse for $60 million, 10 million over the asking price probably back on market probably because he's building a home in palm beach believed to be the most expensive in florida. he spent $230 million on land
alone. he's assembling 13 acres with nearly 900 feet of ocean footprint. will the build a 55,000 square foot glass house before that he had the title of the most expensive residence in chicago and paid the highest price ever for manhattan office space with a portion of his office space at $300 per square foot his performance has been good this year, we have to say that, but when it comes to his personal spending. >> hedge fund managers who live in glass houses. >> all right multiple glass houses. >> ylan mui with washington's breaking news. >> reporter: hi, tyler the administration is out with its latest estimates for how long the social secure and medicare trust funds will last for social security, no change from its previous estimate that fund is expected not to be depleted until the year 2034 however, for social security disability insurance, that fund is expected to be able to go until 2028 that is five years longer than
the government's previous estimate also just to be clear, depletion means that is how long that fund could continue paying out full benefits for medicare part "a," the fund that covers hospital visits. that the fund is expected to last until 2029. one year later than previous estimates. medicare part "b" which covers doctors' visits and medicare part "d" which covers prescription drugs, those are funded through general revenue so they can be paid for indefinitely however, the administration is out with new estimates of how much those programs will cost. they are expected to cost $3.4% of gdp in the year 2037. that is actually slightly better than the previous estimate of 3.5% back over to you guys. >> all right thank you very much, ylan. other news to tell you about, washington-related donald trump, the president of the united states, says he's considering using quotas and tariffs to deal with, quote,th big problem of steel dumping from china and other countries you can see a stock here,
sharply the u.s. -- the company u.s. steel symbol x is higher by more than 4 has. we've seen the steel stocks doing very well over the last couple of weeks because of this situation. >> also says apparently he would invite putin to the white house, but, quote, now is not the right time i'm sure "closing bell" will have more on these developing headlines. >> starts right now. welcome to "closing bell," everybody. i'm kelly evans here at the new york stock exchange. >> and i'm bill griffeth financials have been leading the way today ahead of the bank earnings that we're all expecting tomorrow we've got a debate on how rising deposit rates could impact the bank's outlook wouldn't that be a -- when was last time anybody raised a deposit rate >> other than goldman trying to get out of -- >> yes. >> not recently. fed chair janet yellen testifying again today including your two