tv Closing Bell CNBC September 13, 2017 3:00pm-5:00pm EDT
bottom of the eighth it would be 21 wins, would break a more than century old record >> there's a debate, the cubs in '35 won 21 straight games, 1916, 28 straight games, but there was a tie in the middle of it. so they really, the streak is the cubs >> that would not be a win to me tie is not a win >> they ran out of -- no lights and no lights at the time. >> we have to go closing bell starts right now. you definitely have to go with the cubs streak, that was consecutive games on consecutive days i digress. >> welcome to the closing bell everybody. i'm kelly evans. >> and i'm bill grif fifth right now president trump is holding that bipartisan meeting on tax reform and other key issues on the agenda he's meeting with members of the house. eight democrats, five republicans. that is bipartisan we'll get tape from that meeting shortly and bring it to you as soon as we can
would you spend 1,000 bucks on a phone apple's iphone 10 has facial recognition, and we'll discuss whether the high price tag is worth it and sorry doesn't always cut it shares of ek we fax sinking again today. sinking again toq todau sinking again todai sinking again todaf sinking again todaa sinking again todax sinking again toda sinking again today something we will ponder coming up later here. but we begin today in washington and the latest push for tax reform kayla touche has a timeline coming from house speaker paul ryan today >> bill, we'll get that in just about ten days that's what texas congressman kevin brady who chairs one of the key committees writing the plan told his colleagues earlier this morning house speaker paul ryan said that that framework will reflect the broad areas of agreement where the white house, the senate, and the house have all
come together, but that any efforts to reach a broader consensus among all republican lawmakers would happen after that >> this is really the consensus of the tax writers themselves. so that we're working on the same page. the whole point of all of this is, the house, the senate, and the white house, are starting from the same page and the same outline, and then the tax writers will take it from there on the details >> for health care though you'll remember the devil was in the details. plan a is still to use a vehicle for tax reform that only requires republican votes, but i asked whether they would need a bipartisan effort, if those republican votes fall through. will there be democratic votes needed in the house? >> i would love to have the democrats supporting and working with us in a constructive way on tax reform we're going to do it no matter what >> despite the insistence that it'll be a gop-led effort, the white house continues it's reach across the aisle, perhaps best case, guys, supplemental votes on top of republicans.
worst case, back-up scenario, an insurance policy should those votes fall through kelly. bill >> all right kayla, thank you for now for more on the tax reform timetab timetable, we're joined by terry haines good to have you back. >> thanks, kelly, good to be here, thank you very much. >> how significant are today's developments the flurry of meetings, this talk of maybe some bipartisanship i mean, what do you think this is all pointing towards? >> well, you know, this is, in many ways, kelly, this is a throwback. this is politics 101 you reach across the aisle, you try to gain as much bipartisanship as you possibly can as the president, and if you can't get that bipartisanship, well then the minority party is responsible for pulling back you're not responsible for it. you're trying to be as inclusive as possible. so yeah, this is, this is a very old playbook that's being used by the current president
so, this will go on for quite a while. the administration is clearly decided that what it's interested in doing is reaching across the aisle as much as possible on as many issues as possible and where they can get bipartisan agreement which they mostly need by the way on just about every issue, except tax reform because they can do that on budget pros, they maybe can get that they maybe have a better chance of getting it. so, you know, good for them. >> but terry, how, how willing do you think republican leaders, especially in the house, will be to welcome democrats into this deliberation process and tax reform when to this point, they haven't included them to any great degree >> bill, the way i would answer that is that it is simply this, the white house and congressional republican leaders are all on the same page in wanting aggressive tax reform with a much lower corporate top rate and changes to the
individual rate as well, and retroactivity to january 1, 2017, i think that's we've been calling that a long time and something secretary mnuchin's been talking about recently if democrats want to join in that effort, republicans will certainly welcome that if they don't, they can still use budget process to pass it. i think that's how they'll look at it. >> i still wonder, terry, you know, where you'd put the odds of this happening. as others have pointed out, regardless what have they say, there still is no plan, and we've seen them go down this road before, yes, it's going to happen altogether on this, making a big push, and then buckis. >> i would disagree that there's not a plan or that at least the broad parameters of what they're agreeing to is not known what they're talking about is an aggressively lower top rate. president always said he wants
15% as was pointed out on air a few minutes ago. secretary mnuchin is really talking about 20%. certainly if you do the math, you're looking at 20% or the low 20s. you're looking at the individual changes along the lines i suggest, and you're looking at retroactivity. you know, beyond that, the details as was said by speaking ryan this morning, will be up to the tax writers. those details being, you know, how do you pay for it and exactly, you know, what's the legislative language but bottom line, if you've got a situation where there is political will to do something and there is the legislative process available to do something, you're likely to have something happen and that's where we've been and where we continue to be. >> we're less than 30 seconds to this video tape of the president in his meeting with the bipartisan members of the house there, but are you hopeful that we get something as a result of the bipartisanship or is it just going to be left to the republicans to get this done very quickly, kerry? >> hope is beyond me
certainly the republicans have the ability to do it, and if not, i think there'll be some democrats too. >> well, let's listen in, here's the president. >> group of democrats and republican lawmakers for the white house more and more we're trying to work things out together, that's a positive thing. and it's good for the republicans and good for the democrats. and this group knows that very well whether we can do the incredible things that we're doing and working in a bipartisan faction, obviously would be a positive and i think something, tom, that we all feel good about i want to thank tom reid, he's been a friend of mine for a long time, and he was there right at the beginning when it wasn't very fashionable, right? and i really appreciate it and josh gothymer for helping to organize this very important gathering. i think it's really, the whole concept of what we're trying to do is very, very important inspired by the example of our own citizens, we should be able
to come together to make government work for the people that's why i was elected, that's why i ran. and to provide jobs and opportunity to millions of struggling families. this includes tax reform that is pro jobs, pro growth, pro family, and pro americans. very simple. it's all pro american. we are four principles for tax reform, make the tax code simple and fair cut taxes substantially. it'll be the largest tax decrease in the history of our country. for the middle class encourage companies to hire and grow in america and by doing that, we're going to have to reduce the taxes for companies right now we're at 35%, and really much higher when you weigh the state taxes in, and china is at 15%. then we wonder why are we not competing well against china so they're at 15% and we're at
35 plus. and that doesn't work. and bring back trillions of dollars. we have trillions of dollars overseas that we'll bring back and we'll bring them back quickly. so this is money that josh and tom and everybody in this room can tell you, everybody's agreed to bring it back for years, but it never gets done we're putting it down as part of our tax proposal another bipartisan project that is urgently needed is infrastructure, and infrastructure investment. for decades now, washington has allowed our infrastructure to fall into a state of total decay and disrepair. and it's time now to build new roads, new bridges, airports, tunnels, highways, and railways all across our great land. when we set aside our differences, and it's amazing sometimes how little our differences are. we put our country and we put the citizens of our country first. and that's what this is all
about. so we want to have a great new tax cut and tax reform simplify kags and massive cuts and we want to get our country working again and competing again worldwide, and there'll be nothing that can stop us on top of that, we'll billion discussing probably a little bit of health care because i know some information's come to light. so we'll be discussing because ultimately, when we have some democrats, i will speak, i think i can speak for the republicans generally, but we do want to do something very, very beforefully with respect to obamacare. it has not worked. the rates are going through the roof the numbers that you look at, no matter where you go, no matter where you look, health care is failing in our country and we're going to get a change and we're going to get a change fast infrastructure we'll be talking about, and we'll probably also be talking about daca. because we don't want to forget daca and it's already been a week and a half, and people don't talk
about it as much we want to see if we can do something with regard to immigration, with regard to the 800,000 people that are now young people, they're not children anymore, they were children, now they're young people we to want see if we can do something in a bipartisan fashion so that we can solve the daca problem and other immigration problems so we'll be discussing that today. and then tonight, i am having dinner with senator schumer and nancy pelosi and we'll continue some discussions we have a lot of things in the fire, but i think right now, first and foremost so that we can compete again, and especially in light of the fact that we had two massive hurricanes the likes of which i guess our country has never seen i don't think they've ever seen -- one was the biggest ever in if water and the other biggest ever in wind, and you put them together, and we have devastation in texas and in
florida. and other parts of our country, by the way and i think we've gotten very high marks for the way we've handled them thus far and we continue to handle them well they were very big and very powerful and it was very unfortunate, but because of that, more than ever, we now need great tax reform and great tax cuts so we are here as a group, bipartisan, to try and see what we can come up with. thank you all very much. i appreciate it. thank you. >> what would you tell them, why have leader pelosi and senator schumer over tonight >> i'm a conservative, and i'm not skeptical, and i think that if we can do things in a bipartisan matter, that'll be great. now it might not work out, in which case we'll try and do it without, i think if we can do in a bipartisan matter -- if you look at some of the greatest legislation ever passed, it was done on a bipartisan manner.
and so that's what we're going to give it a shot, right tom see what we can do and if it works out, great, and if it doesn't work out, great, hopefully we'll be able to do it anyway as republicans. thank you. thank you very much. we're looking at a 15% rate. and we want a 15% rate because that would bring us low, not by any means the lowest, but it would bring us to a level where china and other countries are. and we will be able to compete with anybody, nobody will be able to touch us so, we would like to see 15% okay thank you very much, everybody and by the way, lower for individuals. much lower than that for individuals. and the rich will not be gaining at all with this plan. we're not -- we're looking for the middle class and we're looking for jobs jobs meaning companies so we're looking at, for the middle class and we're looking
at jobs. i think the wealthy will be pretty much where they are pretty much where they are if we can do that, we'd like it. if they have to go higher, they'll go higher, frankly we're looking at the middle class and we're looking at jobs. okay thank you very much. thank you, everybody >> okay. so that was about 30 minutes ago as the president began his meeting there with those 13 members of the house, as i mentioned earlier, eight are democrats and five are republicans as they try and hash things out over tax reform, health care reform, and other issues, infrastructure among others >> but in true clum bow fashion, the most interesting thing was at the very end there when he said that the rate for individuals might be much lower than that for corporations, if he's talking about 15 -- >> middle class. >> but if you're talking about significantly below that level, that's interesting he also said the wealthy would not only have to stay where they are, they may have to go higher.
>> not brand new, we heard steve bannon make similar remarks and back away from that there. let's bring in emonjevers. >> i think you lashed on to the right point there, with the outreach by the white house to democrats which is this past week hack the first time in the trump presidency that we've seen this sort of porting of democrats and the idea of getting democratic votes for a trump initiative, now the subtext is does this make conservatives on capitol hill a little nervous that the president's preparing to give away the store in the conservative view? so, watch what the president says fwop things there i think that the president said that might give some conservatives on the hill some pause. one of them was the point that you just made which is he says that he thinks taxes on the rich might have to actually go up under this plan, not down. so that's something conservatives will want to watch and then the other thing, is that he said he wants a bipartisan deal on daca. that's the proposal that affects young immigrants who were
brought into the country by their parents and have lived there their entire lives whether or not they should be deported or not. the president decided to end the waiver there for daca. ultimately there's still a negotiating period of time, he says he wants to get a bipartisan deal. that could give heartburn to some conservatives up on capitol hill too the president seems to be signaling he's willing to work with the democrats here. we'll see if they can come up with some specific agenda items in this meeting, and then in tonight's dinner with schumer and pelosi here at the white house as well. where they can finally find some areas to work together on. back over to you, kelly. >> i'm going to ask you the question i asked terry how willing do you think the republican leadership will be to work with these democrats that the president is reaching out to in reaching some sort of a consensus on these critical pieces of legislation? >> well, that's the interesting question, isn't it i don't think they would normally be all that interested in bringing in democratic ideas. they feel like they're the republican leaders, they have
the majorities on capitol hill, in the house, in the senate, they have the votes to do what they want to do. i don't see them feeling a whole lot of need to bring in a lot of democratic ideas into the proposal except for the idea that you could have a bill that you could present to the country as something bipartisan even if you get just a small handful of democrats in the senate and maybe larger than a handful in the house, that's not that many democrats, but you could say hey look, democrats and republicans are voting for it, it's not a strictly party line thing that's sort of appealing to leadership, but ultimately, it's at what cost the devil is in the details here it's what specific legislative items will they have to eat in order to make that happen? they don't want to eat a lot >> all right emon, thanks we'll be hearing back from you as well. let's goat our closing bell exchange, the dow is higher. i think the nasdaq is as well. which would keep both of them in record territory, but the s&p and russell, now the russ sl higher as well, but not record
territory. hank smith is with us today. part of our closing bell exchange, steve grasso and rick santelli checks in from chicago. steve, watching the sausage being made in washington, and it's a day when the stock market after two decent rallies, days of rallies, is resting here. >> it's resting right on all-time highs i don't think this is, this is a losing day, you can't say that this is a bearish day. even the whole movement in the stock market today was driven by what we just discussed, which was tax policy or the idea that tax reform will take place, but i think this is now from a point of strength. talking about the upper income levels, i don't think that's going to sell with republicans i think that's going to cause more fractures within the republican party and it's not going to be overcome by a handful of democrats going on board with it. if you look at where this is coming from, kevin brady, paul ryan, they introduced border adjustment tax that didn't go over well
mortgage interest, that didn't go over well when they floated that balloon, and what about the 401k to kelly's point, there are a lot of things that are out there that aren't a plan at all, i am not hopeful for it >> hank, are you >> not for real tax reform look, tax reform can't take several months, it'll take several years. the biggest sticking point is dealing with c corp., and s corp., the flow through companies, that's the majority of the united states is small business so are you going to treat those two differently and if you bring s corporates way down, are you going to treat business owners differently than wage earners? this is very complicated stuff >> that's for sure hey rick gee, i could point out that a ten years at two and a half week high, dollar bouncing off a year low here. i suspect you've got something else on your mind right now.
what do you make of what's going on in washington >> you know, i really don't think we're going to see tax reform, but i think we'll see some tax changes and i've somewhat thought that all along, shank exactly right to get real reform, don't think it could be done the one caveat and i agree in a big way with senator cruz and he had more recent comments on this topic today. that if revenue neutral is the guiding light, then they might as well do nothing because it really is just shifting who pays the taxes. doesn't really have a lot of economic benefit this revenue neutral kind of trap conundrum, and i understand why, because we've had a lot of false starts to do things in the economy that have price tags, that turned into deficit price tags, and we didn't get what we paid for, we didn't get sustainable growth over 3% but that doesn't mean trying again is going to end up the same way but that's the political conundrum associated with it, and it's going to be a tough game as far as rates, you're right,
as a matter of fact, five and ten year rates are both going to close at the highest yield since the 24th of august, but the winner actually, two year note yields at 135, that could be the best close since the 8th of august, and i think rates, floating up, is probably, is good reason for stocks to be holding, probably more son so than what's going on on tv with the president. we've been there, the sausage fact have i messy. i'm holding the tech-up, put that on, everything will taste great. >> okay. you've got it. thanks, guys we have to run here because the tape did run a little bit long there. we'll talk to you soon hank, steve, and the guy with the ketchup bottle there see you later. we got 39 minutes left in the trading session here the dow is still at record territory at 21. >> the s&p and the nasdaq are about a point away from turning positive and if they do, any positive close for the three major averages will be another record high for all of them >> it will, write it down in pencil about $42 a month, that is how much the new iphone would
cost apple ak lites. up next, we'll see if the iphone has finally hit the ceiling on pricing. and more than 5 million people are still without power in florida after hurricane irma. ahead, we'll take you to the tetso lines of duke energy's atmp tturn the lights back on stay with us my dell small business advisor has gotten to know our business so well that is feels like he's a part of our team. with one phone call, he sets me up with tailored products and services. and when my advisor is focused on my tech, i can focus on my small business. ♪ a dell advisor can help you choose the right products with powerful intel® core™ processors. ♪
all right. let's check on some of the movers in the market shares falling after a downgrade by mizzou neutral from vy over concerns of competitive head winds. the firm also decreased or -- yeah, decreased it's price target to $40 a share from 70. that's a huge decline. that stock is trading at 35 and change right now dol by soaring today as apple announced that dolby will be integrated dolby on pace for the best in more than a year $59 and change right now apple just unveiled the highly anticipated iphone 10 calling it the future of a smart phone with an all-grass design facial recognition it comes with a hefty price tag,
it starts at $999. >> is it worth it? everybody's asking hey, let's ask dan rayburn from frost consultant it is an aspirational phone. let's face it. is it worth 1,000 bucks. >> here's the thing you have to look at, the samsung galaxy is only $100 cheaper and it has better specs and better front-facing camera. apple's done something well. they can drive demand for a higher tier product. apple ties software to hardware so well, that a lot of people buy it for the software as well. i think they're going to sell a lot. >> it's interesting, the $999 number doesn't matter, it's 42 bucks a month, i guess people have to pay up front for -- >> like a mortgage don't look at the whole price, how much per month. >> or a car. i mean, so many people, especially young people, living their lives on a month to month basis the way they play for
netflix and music for example, $42 in the context of that seems like a bargain is it? >> i think it is it's also, you have to keep in mind that here in the u.s., china and other places are different for apple, but carriers are subsidizing the cost to your point the idea that a consumer has too pay a little bit every month i think they're going to sell a lot. the key question is the report that's come out that apple can only produce 10,000 a day. if that report is true, 300,000 a month, how much inventory have they stocked up before it goes on sale? >> a lot of complications in the streaming. what excites you about this iphone anything >> what i like most is just the quality of the screen. from someone who focussed on video all day long and that's my background, consumers are consuming more content, more often on more devices for longer periods of time and higher quality. and since the next generation and current generation is doing so much short form viewing, it's going to be even better to do it
on the new iphone 10 >> some reminds me back and ford and gm going back to the middle of the last decade when they were effectively financing companies. is apple financing all of it itself how does that change apple as a company, as an investment as it moves deeper in the model? >> that's a good question. we have to look at the arrangements with the carriers they are subsidizing the cost. apple is footing the front bill in terms of making the phone, but apple has done good at projections. they have a pretty good idea what have they're going to sell. the problem i don't like is it doesn't go on sale until november 3rd which means you're losing out on q4 i think it does impact q4 sales. i think they're going to sell a lot of them. >> what does this do to iphone 8 sales. >> if i'm a 6 or 7 user, i'm
upgrading to the 10. if you look at the specs at the 8, there's not a lot than the 7. >> i think they will the price point even though it's $300 difference. plus it's the first iphone to do edge to edge screen. samsung's had that forever >> does that make it a big difference >> for consumers it does, on a small screen, they want to see as much real estate as possible. >> what happens if the facial recognition technology is clunky to use it sounds like it doesn't work perfectly even if in their own unveiling. it didn't work perfectly then you have that swipe the screen differently. >> that's a good question. that's going to be seen at this point just in terms of how well have they done with the software with the hardware. from everything i've seen so far from people who have gotten hands on with it, they said it works well it's impressive in terms of how quick it is. it's a fair point, every time apple comes out with something
from a hardware component, to me the software is more important than the hardware. because if the software doesn't work perfectly with the hardware, consumers get unhappy and they don't buy it. >> i assume you're going to get one? >> i will at some point. >> wait and be appreciate. >> dan rayburn joining us today. time far cnbc news update now with sue herrara >> hello bill, kelly, here's what's happening that the hour one person killed and three more injured after a shooting at a high school near spokane, washington a suspect has been taken into custody. officers responding after a shooter opened fire at freeman high school in spokane county. the person killed was a student. a group of republican senators are taking another crack at health care reform. claiming their bill is the last chance at preventing america from adopting a single payer system >> if you believe repealing and replacing obamacare is a good idea, what is your best and only
chance to make it happen because everything else has failed, except this approach, which will work if we get behind it $44 million was raised by the hand in hand tell on this for hurricane relief dozens of stars took part in the event at studios in los angeles, new york, and nashville. as it was broadcast simultaneously across multiple networks that is the news update this hour i'll send it back downtown to you guys, kelly, bill. >> all right, sue, thank you very much. we'll see you next hour. our sue herrara. ceo of ek we fax offering a me ya cull pa today. we'll look at what the credit ene meig bk.ngcy should be doi wh wco rhtac at fidelity, trades are now just $4.95.
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welcome back, millions of americans in florida are still without power and florida power and light, duke energy is the second biggest power company in the state. our jackie deangelis is riding along with crews as they try to get the lights back on, jackie >> reporter: good afternoon, that's right, another stop on this incredible ride along today. and you can see up here, this crew is working on distribution switches, they're making repairs to those, they were damaged in the hurricane. they are working with live wires here, they don't turn the power
off in order to do this. they keep. going for the users that do have it in other areas, they are working with drones to actually assess the damage and make sure that they're figuring out where they need to go next in the most efficient way possible let me give you some statistics of what we've seen today duke energy replaced 3,000 poles that hold the wires up, 950 miles of wire, they've also replaced 1,100 transformers and that's just happening today. now in florida as you mention, these power outages were very widespread, about six and a half million for the state in terms of customers when we started reporting on this, that number now down to less than three and a half million in terms of duke specifics, 1.4 million is where that company started with customer outages, they have gotten it down to under 800,000 at this point, kelly. at least they've been working
quickly to get the power back on i know there's a ways to go, they're bringing from all over the country to do it thank you very much. >> reporter: everyone's grateful, guys >> yeah. as we mentioned, so important for all. not just about the refrigerator, it's the apparatus and their cell phone towers and the rest of it. sorry is not kiting it for equifax so far, shares have been getting hammered yet again after the ceo apologized this morning in usa today can this company regain confidence from veoran stomers?d that's coming up next. whoooo.
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about 20 minutes left in the trading session. if you're just joining us, it's been a mixed day for the stock market, dow's up 23 point twhabs keeps it in record territory, s&p pulling back a bit the russ sl a little bit higher. yields for the tenure especially have hit a two and a half week high today, and the dollar has seemed to bottom at least for the short term here, something that would suggested today by jeff as well so the safety trade has come off a little bit here. president trump making bold statements on tax reform during that bipartisan meeting that he's holding at the white house right now. just ahead, we'll hear from one of the democratic congressman
who's inside that meeting. and next, the equifax mess worsens as consumers face difficulties being serviced by the website and the ceo makes a public apology what the company the worst in the s&p today should be doing next being the incredibly busy man that i am, i've asked chase sapphire reserve cardmembers to scout the world to find my next vacation. elton, what are you up to? i'm having breakfast in uganda. uganda be kidding me, elton! it's a... it's a joke. james, we're going to look for gorillas! hang on, what? that's a real silverback gorilla. look at it! no, don't look at it. shhhhh stay. okay. i'm freaking out! sapphire reserve, from chase. make more of what's yours.
welcome back with the dow still up 22 points, which would be another record high today, look at shares of i robot which are sinking. shark ninja just unveiled a cleaning vacuum, short sellers point in capitol reiterated it's strong sell on the stock irobot down 15.5% today. >> ouch. in an op-ed post this morning, richard smith vowed that his company, quote, will make changes the data breach that we learned about a few days ago, week ago thursday may have compromised the personal information of 143 million people roughly half the u.s. population since we've heard the news, the stock is down 27%, the company now offering free credit monitoring, if you can get on their website because that's been a problem they were going to charge you $10, but now it's going to be free and you won't have to give up your ability to sue the
company if you want at the same time. >> that's true, but is it all too little too late? joining us now is adam balinski. thank you for joining us >> thank you >> you know, i was one of those people today on the website signing up for their trusted choice whatever it's called. i'm not really sure what, you know, that's going to do at this point. what's your advice to those affected right now >> well my advice, this isn't a trust worthy company, and i think they really flunked crisis management 101 the three principles of crisis management are be quick, candid, and repentant when a crisis occurs, and they were none of these. they were very late. they haven't been very candid. and they haven't been very repentant. they seem to profit from and capitalize on the mistake early on in in their thing so as an investor, as a consumer, i would have very little trust in equifax and the
ceos apology even today lacked the type of candidness, the type of solution oriented specifics that people needed to trust this company. it was again too vague, too little, too late >> yeah, i mean, it was six weeks after they discovered the breach that they made it public, initially when kelly went online to see if she even was one of those affected, she was going to have to sign up to give up her right to sue the company, they have since taken that away under pressure from the new york state attorney general, and then they were going to charge $10 if you wanted to freeze your account. now that fee is being waived these guy us couldn't get out of their own way here initially, but is that just symptomatic of a company that finds itself in a huge crisis that it's not used to >> absolutely, but they should have been prepared for this crisis they should have recognized this was a high probability that something like this could have occurred they should have set up policies and practices in place, for example, if something like this
o curse, we make it public immediately that prevents executives from selling their stocks you don't have to have all the answers right away, you have to have a commitment to finding the answers in the solutions i'm reminded of, you know, when the navy seal 6 captured osama bin laden, one of their helicopters crashed. why did they handle that well? they practiced, practiced, and practiced with a replica before then that's what companies need to do they need to anticipate the crisis, they need to practice how they're going to respond, and they need to set up solutions immediately. >> we've also seen home depot and target as some victims of these really bad breaches, but the point's been made that their primary business is not in data protection, which equifax now is so in order for them to recover and arguably from their point of view try to come out stronger, what could they do at this point? when i go on the website earlier today, it was straightforward in terms of saying look, this is what happened, but here's the things we're trying to do now.
and now they have a lot more data and information on people as a result of all of this data entry into the trusted website so, what can they do now if they want to look back on this and say, we're glad that we ultimately handled that the right way? >> well first of all, you bring up a really important point which is this crisis is at their core competency, right so sometimes a a crisis hits and it doesn't affect the core of the business or what they're entrusted to do. so they're in a deep, deep hole because the very thing that they do as a business has now been called into question and we've seen very few businesses recover in this type of situation the only way they can cover is by going over and beyond on every possible dimension that we care about protection, you know, helping the consumer, preventing this from happening again, becoming a vanguard and preventing this i am very, very suspicious that they will ever overcome this core competency crisis, but they have to move mountains to do so,
and they need to start now >> well, they're not off to a very good start, that's for sure. >> no, they're not >> adam from columbia business school, thank you for joining us, appreciate it. >> thank you so much and we have 12 minutes to close until the close. equifax the worst performer today. the s&p is down just half a point right now. nasdaq's down four we'll see any positive close for those would be a new record high dow hanging on to a 23 point gain (baby crying) (slow jazz music) ♪ fly me to the moon ♪ and let me play
welcome back e market report today getting a lot of headlines predicting that cord cutting will accelerate faster than expected the help of the bund sl taking stage at goldman sachs at the conference today julianne is in los angeles with the headline >> reporter: hey kelly, media moguls have been explaining how they're tackling cord cutting. the ceo saying today he see's huge potential in a lower price point tv bundle in the $20 range. he says they're working to
launch one by december >> clear data to suggest that a lower price point that doesn't include sports has consumer appeal that's indisputable. there hasn't been a product in the u.s. marketplace, i've said it before, i'll say it again, we are highly confident that a product will exist that the price point in the u.s. in this calendar year. >> reporter: well he stressed the importance of a low cost bundle is to bring people into the paid tv ecosystem. murdoch also spoke today, he says that fox has not seen subscriber declines accelerate, he also says they're benefitting flu in the digital bundles at the same time, he predicts that everyone in the media space will launch ott options. >> major media company on the planet that ultimately might have a direct consumer product launched in the short to medium term so, make no mistake about that however, if we've come back from that, we need to make sure that
we don't damage the current ecosystem which is very profitable >> reporter: now e marketer and latest projections doesn't include the digital bundles from hulu, youtube, and others. we'll have to see how much all of the growth in the new arenas helps compensate for tv declines certainly a fast-ending, fast-moving area to watch, kelly, back over to you. >> you know what's interesting to me as well, if you look at report, for the first time the people spent less than four hours watching tv quote/unquote, but time on digital video increased to 90 minutes from about 60 minutes five years ago. so at what point, if they're still watching video can video delivery companies benefit from that >> reporter: well, there are so many different players here. you have the netflix of the world, and especially amazon now joining that game as well. and that's really about on demand viewing and there's less benefit there for the traditional players like the 21st century foxes
if you're fox and you own a company like hulu, you want to make sure that people subscribe to some sort of bundle, the new streaming bundle or comcast. obviously comcast, our parent company has a different agenda, also wanting to, you know, maintain subscribers to the video piece as well. so a lot of different players here >> that's for sure julia, thank you julia there at that conference and who doesn't love netflix by the way? >> not liking that is not like santa claus. >> i've heard that somewhere as julianne robertson said yesterday. two more interviews from the conference coming up on cnbc tomorrow verizon chairman and ceo will join squawk on the street. les will join the crew that's going to be a great couple of videos. >> look forward to that. is it time for the closing countdown already? we'll have that for you. quick recap of the day on wall street in just a moment here >> we're in the green across the
board right now. just barely for the s&p and for the nasdaq after the bell, the ambitious iphone x 10 price tag may not spot apple lovers. but could be a roadblock for those convert from android we'll have more onts rivalry between samsung and apple coming up you're watching cnbc first in business worldwide for 17 years running.r cable but some people still like cable. just like some people like... ...banging their head on a low ceiling. drinking spoiled milk. camping in poison ivy. getting a paper cut. and having their arm trapped in a vending machine. but for everyone else, there's directv. for #1 rated customer satisfaction over cable. switch to directv. call 1-800-directv.
about two and a half minutes left here. i was going to start the countdown with the index that finished to an all-time high and it looked like it was going to be the dow. the only index that was going to finish at the all-time high today. late here this afternoon, the s&p and the nasdaq had moved into record territory as well. we have a terrifrifecta here, to as it moved higher late in the day, but still, nothing like the magnitude of the rally we saw on monday and then the continuation on tuesday the safety trade continues to come off the yields on the along the curve moving higher, the ten year yield today hitting a two and a half week high we're now at 219 just last week we were at 201, and the dollar index has bounced from that year low that we saw here recently, jeff gunlock saying that he thinks the dollar has bottomed at least in the short term so we're up to 92.45 right now and oil is now at a five-week high, bob, as more refineries
are brought back online, that increases the demand for crude oil here in the u.s. and we're up to 49, almost to $50 a barrel with a gain of 2.4% today. >> and it's back the mini rally, there's a mini rally going on today we pause today, s&p is up 1.5% this week. this is historic highs retail stocks are in a mini rally phase right now. >> i was going to say, nordstrom has something to do with that, i think. >> jc penney, these are up three, four, 5% this week along. this is the third day in a row we were talking about energy stocks, this is another one of these, hate mail about this, don't tell us about buying energy, bob, we tried twice this year, got head handed to you there's a lot of hatred towards energy stocks right now, but we're in the middle of another rally with the oil standing near $49. the other mini group rally sort of pausing and those are the bank stocks, of course the yields have been moving up let's say it's either side of positive or negative for most of
the big bank stocks today, bill. >> and ipo price you'll get to kpumg here >> social capital. i just like saying the name. >> you get to say it again next half hour here, coming up. so we've got those record highs for the major averages in the stock market today stay tuned, we'll get more from that bipartisan meeting at the white house coming up on the second hour of the closing bell with kelly evans and company see you tomorrow, kell thank you, bill. welcome to the closing bell, everybody, i'm kelly evans and we have more record highs across wall street today. looks like small declines on the s&p 500, increases i should say for the s&p in the nasdaq, just on the bell there, puts all three of the major averages in record close so again, the dow, which was higher there by 37 points to close at 22.154, s&p managed to
add nearly two points to 2,498, less that two points away from 2,500. the nasdaq managed to gain a percent today, and yes, that is a record close now the russell 2,000 with just about a three and a half point gain there, quarter percent increase makes the best performer on the street today, at 14.26, it is still shy of the 14.50 record high. still holds from the end of july for those small caps more on all of this in just a moment president trump holding a bipartisan meeting on tax reform this afternoon he says the wealthy may not be getting a tax cut under his new plan and maybe even an increase. we have a congressman from that meeting to give us more details coming up. and the social capital ipo, kind of a unique one, it's going to price any minute now, bring that to you as soon as it's out. interesting test for a different wave of private companies to go public in the markets. we have cnbc senior markets commentator michael san toely,
welcome to everybody, and mike again, especially for the dow today, like a second solid advance -- >> yeah. >> and it's a very different tone all the sudden from the end of august. >> it is i would say kind of sitting around at all time highs is not a bad place to be sitting around, but really throughout the day, it did just kind of hang there this has been a market that's had this character where it doesn't go up any staircase without taking a rest on the landing, and that's what it's doing again. but again, it's all in the context of a global equity rally. so it's not as if the u.s. market is doing this in a vacuum, and i will say the other thing that this market's been good at is looking for little groups of stocks that have been left behind, gotten oversold, and then picking them back up and this is happening with banks, bobby, we were talking about retailers, airlines this week so it's been this tension release. i don't know if we have enough to get much beyond here, but certainly sticking around these levels is okay. >> and ann, some of the names in
all-time highs today, home depot, a lot of the rest of them in health care you have baxter, you have signa, united health as well. why do you think that area's doing so well? >> we have this transition that keeps going back and forth between playing offense or playing defense. and a lot of it has to do with where the ten year is at and where we think tax reform is going and interest rates are going. the market, it's a difficult market for investors because it keeps changing it keeps transitioning so you have to pick places on the market, we're trying to find the stocks that are good in each of those spaces -- >> what are your favorites right now? >> right now shirwin williams. it plays to the home remodel, home repair. >> really? i want to get in the diversion on this, journal had this interesting story yesterday about how it's no longer a diy painting market. you know, growing up we used to do so many home painting
projects, but it's not the traffic driver anymore, people are hiring somebody because they're too busy watching netflix to do it for them. >> true. and it's the number one page with professional painters and i think when people think of sherwin williams, they think of the do it yourself market, but it is with professional painters i like that stock, but more defensive stocks too, biorad, company on the health care side in the medical tool space. it's a company that has been hurt by it's own problems implementing an erp system which has caused challenges. i think once they get beyond that, you'll start to see the growth there as well as margins. so it's those individual stories we're looking for. >> for sure, jeffrey said we put a short term bottom in for the u.s. dollar. today that's back up half a point, still only at 92.5, where do you guys think it goes from here >> bottom up stock, we're looking at the fundamentals, obviously the dollar was a very long trade and you see that unwinding, now near term, potentially there could be a
pick-up. when i look at fundamentals across international and especially in emerging markets, the earnings is coming back and it's not just a risk on risk off story, it's much more about the fundamentals and that gives us optimism in our portfolios >> let's talk about apple. we're still digesting the huge news from that company and more movers on that front today western digital, which was down because it looks like a consortium is going to make a bid and especially with the announcements of storage capacity yesterday they need access and they want a healthy numbers of suppliers in the market they don't want to be taken over by the competitors there that was one of the worst performers in the s&p, then this interesting story about how you may not be able to use them on t-mobile's network >> yes, you're starting to see the winners and losers ripple effect from the new phone. >> and i should say, you can't use it on t-mobile's new fancy e network, not any network >> they will work on some of them but it's not taking advantage of the latest version of the t-mobile network yeah, and when it comes to apple
shares, it's up, clearly kind of put a lid on the nasdaq today backing off a bit. very difficult to extrapolate from that and decide, it's not the market kind of rendering a verdict on the new phones or how much the upgrade cycle is going to be down the road. i think it's about digesting a 50% move in the stock, year to date, trying to figure out if the release date matters and all the rest of it, i think it's okay right now i don't think it's a big sell on the news story i think you have genuine questions about the strength and the duration of the upgrade cycle. >> how big a deal is it for you guys to trace back the supply chain and look for investment ideas around apple >> sure. it matters to the market what we have tried to focus on is the unapple there's so many other suppliers and markets out there, even if it's the chinese samsung itself, there's a whole host of opportunities where you're not hostage to one customer, if you will, but it is a big deal and if you look at now moving into all of that, that's going to probably double the size of the cost of the display, and
that's good news for the supply chain, the important, the importance that was just mentioned on the memory side you're seeing it go up, and that's been a big win and earnings positive surprise for the likes of samsung. >> well, i love how samsung benefits no matter what. apple's phones, it's been a slow year for ipos, but tomorrow we are going to see an ipo floated here see if it's getting more than the usual mamt of attention. social capital is set to price any moment now they're planning a healthy increase or raise i should say of $500 million. and that's 50 million shares at ten bucks apiece bob joins us now with more on this. >> hi, it's unusual because it's an ipo with no assets, no assets right now, it's a special purpose acquisition company, big words called a spak. it's being set up to that aren't public they are based on a season manager and investment space, say energy or tech for example
and it settles them into a portfolio for investors. you're buying a management team with experience which is attractive to many investors there's an element of risk here. the manager is essentially saying, trust me, i can buy companies that are priced that will eventually make money for you. now, they are hot this the year, more than 20 have gone public so far in 2017, that's the highest number since 2007. that's according to renaissance capital. why are spacs suddenly so popular? first and foremost, they may help the log jam there's hundreds of companies waiting to go public that can't or won't go public in the current climate. in the case of tech, we've talked about this big valuation gap between tech private valuations and what the public is willing to pay for them spacs offer a way for some companies to go public potentially at the same time, they also offer investors an outclause, the money sits in a fund until the manager announces what he's going to buy if an investor doesn't like the deal or doesn't like the prices,
they can back out and get their money back still it's not a cheap way to buy companies, folks the initial investors will own 20% of the company, essentially as a finders fee while the public investors own the other 80%, guys personally, i prefer a straight ipo, when you get a log jam like this in ipos, maybe this will help a bit, back to you. >> all right bob, thank you. the ceo and founder of social capital will co-host halftime report tomorrow starting at noon eastern time and i mean, does this interest you as an investment >> you know, i think our job is to find investments that are attractive, so to invest in a company just give them the money without knowing, probably not something that we are really looking for today. if it was an inexpensive market and companies were having a hard time going public for that reason, you know, go back to 2009, you know, capital -- >> it's almost the opposite is happening. the private market valuations hi call are so high and they come public and there's stumbles out of the gate. he thinks this is a different avenue for them.
>> in particular this one, as opposed to other ones that are roll-ups of the old fashioned sort he wants to take advantage of the very reluctance of start-up founders to subject themselves directly to public market discipline you might call it or punishment or just expose themselves that way. and to essentially try to capture the potential for a spread between what they're willing to take and what it's worth in a kind offing a investigated public vehicle, i don't think it's going to be, you know, some kind of craze, we're not going to see 50 of these in the next few months -- >> unless this one goes well. >> you're right. although i think it's very interesting that it's clearly a bull market phenomenon, greatest since 2007 >> right, every time you see anything and you go oh boy all right. guys, thank you very much. ann and conrad >> thanks. we're going to go over to kate rogers for a market flash here, what's happening, kate >> we're watching shares of semiconductor corp the stosks moving higher then fell before the close. this on a bloomberg report that president trump is blocking a
chinese-backed pe firm from buying the chip maker over a security risk. the bloomberg report also says that this is only the fourth time in a quarter century that a president has stopped a foreign takeover on national security grounds. once again, shares of the semiconductor corp. back over to you. >> kate, thank you speaking of tech, there may be an x factor for the iphone. from froil june, 67% of phones activated were android, 67%, while 134i % were apple iphones. apple may have to convert those droids can they we're going to find out next president trump wrapping up a bipartisan meeting with members of congress. we'll speak to a congressman from oregon about what was on the president's mind and we want to hear from you reach out via twitter, facebook, or e-mail, y'roue watching cnbc, first in business worldwide.
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>> thanks for having us. >> jonathan, we'll begin with you, let's talk a little bit about the popularity of android and whether apple has enough pizazz here to, you know, peel some people over to give it a try. >> look, i mean this narrative has, you know, existed ever since 2008 so i think apple is doing exceptionally well there's a lot of research in the last couple months that even without a new phone, even with all the pent-up demand, the super cycle for the last two to three years, apple still converting android users at a really high percentage so i'm not worried about them taking android users at all, in fact i would expect that to increase here just based on how incredible the new phones really are. >> jonathan, do you buy that are people either apple people or android partisans and does it really break down to something like that or is it more fluid and do people genuinely do a side by side
comparison of features when it's time for them to get a new phone? >> i think that's a great point. on the android side, it's incredibly fluid their lock-in is certainly not as strong as apples. as far as people that own iphones, i don't think we see a lot of people that have iphones going to android or to another platform, if anything, they would get a different model iphone because of how strong that apple ecosystem is. >> chris, what do you think? are there going to be converts to the iphone 10 from android? >> i think so. i think a lot of people are going to see that the flash and the novelty features of things like an emoji. i also think that, you know -- you're kind of locked into your own system increasingly these days you know, if you're in the ios garden, you're pretty much staying there. you know, you hear tim cook call android as he did a few years ago a toxic hell stew. you know, it's supposedly full of all of these security
concerns, and apps that aren't fully tested in the way that, you know, the way that apple kind of protects you or sells itself from protecting you so i think that we're entering a phase now where people are going to decide which side of the wall garden they're on. are you in apple or are you on kind of the android side of things if you're an android you don't choose samsung or google and you know, i think we're going to see a certain amount of maturity in this market going forward. >> jonathan, how common is it for people to switch from one platform to the other? >> you know, in my experience it's foot in common. i think to chris's point, i think we're seeing that, but we're also seeing less of that, some cases from the other side because i feel like a lot of android users over the past couple of years have way less reasons to stick on that side of the fence. apple has done a great job at picking off all the low hanging fruit and even, you know, the major features that lack, wireless charging, you have incredible security, you have
the screen, you have all of these advanced features that might have started on android for some of them, but really takes apple with their combination of hardware and software to really marry those two together in a product that a majority of people to want use and enjoy using. that's the major part here >> chris, this whole discussion is i guess underscoring why so many on wall street are very focussed on the existing installed base of iphones when it comes to apple's outlook and also how many of them are more than two years old i guess the question is, if you are either an apple person or an android person, are you buying phones less frequently in other words, is the upgrade cycle what it once was, you know, at this point do we really have to have that much better of a new version to get people to move or is it pretty much everyone grabs for the new thing. >> i think we're seeing that less and less people grabbing for the new thing. i'm still an iphone 6s owner i love that headphone jack, and i'm going to stick with that phone until it dies on me.
and you know, i thought of upgrading to the 7 or the 8 or even the 10 at this stage. look, people are happy with the phone that they have increasingly it's also we're seeing that in the tablet realm. people buy an ipad and stick with it for years. increasingly as phones become larger, they become more tablet-like, more reliable, the batteries get more and more power, we're going to see that increasing in the phone realm as well this is a mature market. people aren't paying that much attention. they only care when upgrade time comes around and if they're not satisfied with their phone, that's when they have the apple store. >> yeah, steve forbes had an ipad that must have been ten years old. if they're even ten years old, and we talked to julia yesterday, i think had like an iphone 5 that he was happy with. >> it's very much like cars. cars don't fail anymore and it's less that much more -- >> you're just happy with what you have it's almost harder to switch than to not.
chris, jonathan, thank you both. >> thank you jpmorgan chief jamie diamond gives banks a bode of confidence yesterday. he did express concern about one area of the business that's next on a special edition of fast take and senator bernie sanders is making headway on a single payer health plan. what he's done, who's behind him, and the gop reaction, coming up. for the holidays,
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welcome back with more breaking news. let's go back to kate rogers. >> tlai, kelly, a statement from the white house on president trump's decision to block lattice by being acquired by the china company limited. the statement says in part, the national security risk posed by the transaction relates to, among other things, the potential transfer of intellectual property to the foreign acquirer, the chinese government's role in supporting this transaction, the importance of semiconductor supply chain integrity to united states government and the use of lattice productsby the united states government. once again, the bloomberg story does say this is only the fourth time in a quarter century that a president's actually stopped a foreign takeover on national security grounds, kelly, back over to you. >> all right kate, thank you lattice down 1%. time now for our fast take today, shall we? we have tech headlines from delivering alpha and we begin
today with assures tesla and senior management basically is too, take a listen. >> we are still short the name the only people more bearish than us are the corporate executives this is a good example of i think of colt stock it's fair to say in the market wrsh the market will look at anything the way it wants to in glass half full kind of mode. this is a company where you have every single senior executive department seeing senior people leave, you know, faster than you can say whatever, you have a company losing billions of dollars. >> and as if to prove his point, the head of business development today said he's leaving after 11 years, what are your thoughts? >> as if to prove his other point, the stock was unmoved so it is a cold stock, it's true believers, even bearish analyst on the cell side today who thinks it's only worth $200 down from 360, whatever saying it could go to 600.
so it's all about the big dream, not the operation. >> i'm short, it could go to 20,000, but i think it's off. >> 24% of the float of tesla is already short. not as if there aren't bears out there. >> speaking of jamie diamond, more than just bitcoin to talk about. he's worried about the growing payments industry undermining his bank's poor business, take a listen. >> the play place i worry about disruption, i'm not worried, but we should always as payments, there's a lot of things on payments that very smart people. they still use the banking system, but you could find a way to try to not use the banking system and take trips around the world and people doing a good job serving clients not using banks anymore. right now most of the payments at the end of the day, use a debit card, credit card, or payment to move money, the banks are doing certification, moving of the money aml, bsa, it'd be terrible if we rolled out for them and never got paid for it. >> there is a free rider issue which i notice every now and
then >> i don't know what all those acronyms mean, if he's serious about what's happening with payments possibly undermining a lot of that business, maybe they should have got world pay. >> yeah, probably are options, and interesting, he's worried but not worried. that was kind of the message there as well. i think it's about a lot of these digital wallet type apps which will let you just load something on to a starbucks card and direct into the become the the bank doesn't get paid unless it's on a debit card all of these ways you can kind of just operate above the actual transaction processing system of the banks. >> we probably don't talk about it enough, there's a lot of transition under way is it the end of the data center that sector was slumping after comments and barry at delivering alpha yesterday. take a listen. >> if you can actually process data much more quickly, right, you may not need all of the space on the racks that are in, you know, everybody looks at data and video and demands growing like this, but if the chips are growing at least as fast, are companies like digital
realty or the guys in my space, you know, we avoid, i avoided that space because of what he told me about what's going to happen in the business and technology and that directly impacts a sector of the business >> yeah, reap being real estate investment trust it was down 2.5% down more during the session certainly -- digesting some of that concern >> yeah, and it's been very hot area it's been this area that people say wow, that is only expanding, you know, exponentially every day, every year. therefore these data centers are like a one way trade what could ever go wrong and so this idea that in fact you could compact all of this activity on the data base side was very fascinating and i think definitely was weighs on this stocks. who knows if it's going to happen soon or not >> does that mean the entire cloud. cloud, cloud, cloud, cloud, well if you can just process in the moment --
>> well, no, i think the cloud get compressed in terribles of physical space yes, in theory they're that much better, do you actually need as much of the installed cloud infrastructure i don't know if that's it. i think a lot of the data base raets were considered to be label the like cell phone towers >> absolutely. >> which always looked expensive, you needed more of them >> entire countries, iceland we are betting their future on the data centers finally who says china can't innovate jim breyer says they're leading in ai. >> china right now represents about half of the most interesting ai investment opportunities in the world >> and they have led in drone development too, for example you know, something you've got to pay attention to. >> it's deeply embedded in china. one thing he mentioned to me after in a conversation, it's because they have so much data to work with, that's the raw material of ai. >> they have more people. >> more people, more transactions, more smart phones and more hands that gives you more data points
and that plus, of course, these sort of young, star programmers who they can kind of pluck out >> that is really interesting. learned a lot today. we have a new alert on tenant thoelt get to. over to bertha for that. >> kelly, the dow jones reporting that tenant health care according to sources may be exploring a possible sale. now this is something that has been talked about for a while. you'll recall, that back on august 31st, trevor eder, the chairman and ceo announced he'd be resigning this coming after two board members that came from glenn view capital, the activist investors had been pushing for big changes at glennview resigned, saying that they were going to take a more active role so it appears that there may be a shake-up in the works. and among the issues being considered is possibly a sale of the entire company, tenant over the years has been selling off various properties to try to deal with it's debt. the stock responding up well over 10% here in after hours, back to you. >> all right
bertha, thank you. that's a pretty big news, michael. >> it is a big move. the very depressed stock by the way, a lot of debt so essentially, you know, the equity would be a relatively small piece of an acquisition if they were managing to sell >> but is this a story about hospital consolidation i mean, the interesting thing is the hospitals have done so well under aca until it hit the skid the last year or so, and i don't know about the economics there -- >> volumes have done better. but i don't think this is a balance sheet that was optimized to take advantage of that. so i think it's probably more of a thc thing in general although, i wouldn't think anybody would argue that the hospital industry has a whole could use consolidation. >> that's why i wonder who's going to take it over. >> go ahead, bertha. >> volumes have actually actually been kind of tough. people putting off elective surgery as our co pays are higher so people aren't necessarily going in there a lot of people because of those are also starting to look more at ambulatory services going to
the retail clinics and things like that rather than the emergency room so for some hospitals that haven't been able to sort of diversify, they are actually starting to feel a bit of the crunch >> great point bertha, thank you very much. tenants now up 12% on that news. and it's time for our cnbc news update this hour, sue herrara, sue. >> thanks kelly. here's what's happening that the hour everyone, man accused of shooting and killing his mother at a medical center in new hampshire appearing in court today. authorities say 49-year-old travis frank shot and killed his mother while she was in the hospital's intensive care unit he was ordered held without bail only first-degree murder charges. crews battling a building fire in missouri this morning. the fire was reported by ck enterprises which is a chemical manufacturer you see that heavy smoke and flames near the back of that building fire officials say a winter additive ignited the fire. luckily no serious injuries. animal lovers on st. martin
are going door to door to rescue peats abandoned by owners before and after hurricane irma struck. on the dutch side of the island, many pets were left behind when their owners had to evacuate and a judge has awarded rebel wilson $3.6 million over magazine articles the actress said cost her roles in hollywood films. a supreme court justice in australia said that amount was required to vindicate wilson after her reputation was wrongly damaged. you are up to date, that is the news update that the hour, kelly, back to you >> all right sue, thank you very much sue herrara. president trump making a case for bipartisanship at the white house today. from tax reform to daca, the president extending a hand across the aisle to democratic house members. venel look at what's behinth d at mo, xt♪ [car tires screech]
25 point shy of their record high now president trump making some surprising comments on tax reform and what it could mean for the wealthy at a bipartisan meeting earlier this afternoon let's get to elom mui with those highlights >> reporter: he wants to lower taxes for both businesses and individuals, but not for the rich >> we would like to see 15%. okay thank you very much, everybody and by the way, lower, and lower for individuals. much lower than that for individuals. and the rich will not be gaining at all with this plan. >> reporter: now trump said that the wealthy could actually see their taxes increase under his plan, but there have been several studies that show the wealthy could be some of the biggest beneficiaries from trump's tax plan, including a report that was just released today from the institute for economic and taxation policy they found that the top 1% would see a more than 7 percentage
point decline in their effective tax rate that compares to everyone else who would see a decline of just about two percentage points or less president trump was meeting with the problem solvers caucus, a bipartisan group of lawmakers in in the house they're meeting touched on not just tax reform, but also issues like immigration, issues like infrastructure as well and of course, president trump has that meeting with chuck and nancy later on this evening holding a dinner with them as well so the president telling reporters there that he is going to give bipartisanship a go, but that if it doesn't work, he's willing to pursue his agenda alone. back over to you, kelly. >> all right thank you very much. michael, it feels like that's going to be the sticking point for getting democrats on board any idea, report, information, sense that this is going to benefit the wealth more than the middle class >> so much scatter shot detail about what it might or should or could include. that there's almost no way to reconcile the idea that as the president said, it will be the
biggest tax cut ever, and yet, the wealthy won't pay less the math doesn't work on that. unless you really radically get corporate -- >> maybe it'll be the biggest tax cut ever for the middle class -- >> except the middle class in aggregate doesn't really pay as much as you would. in other words, i don't think the market is looking at this and saying, this is a well calibrated message of what the plan's going to be let the process start and see what comes out of it >> that's for sure kurt slager, he's a member of the bipartisan problem solvers caucus they just met with the president. we thank you so much for joining us, congressman. >> thanks kelly, appreciate being here >> did you solve problems today? >> we talked about a lot of problems there wasn't a lot of politics this time. it was pretty substantive discussion a lot of democrats, a lot of republicans, mostly problem solvers and blue dogs. >> yeah, you guys outnumbered the gop, right so let's talk a little bit about what the whole point of this was
for the president's agenda is the idea that by meeting with you, there is a possibility that you'll vote for some of these plans on tax reform, on health care reform, maybe on daca >> i think he's interested in bipartisan solution, at least that's the way it would appear might be also a way to get republicans to get back on board. so that the president doesn't have to work with democrats, but he gave instructions to gary kohn to work with democrats. that was the major thrust of the conversation and we pitched the idea. if you want to win, mr. president, support the health care proposal to fix the individual marketplace >> so we'll get to that in adjust moment, on tax reform, where are the areas where you agree with the president and would support a tax reform effort >> well, i agree that the middle class ought to be the beneficiaries, he did talk about the wealthy not getting anything out of this at the end of the day, we'll see devil's always in the details. he's talking about he would be open to an infrastructure link
discussion, but definitely tax reform is his laser focus at this point in time wants to get the rates down, substantially, i think he's going to have a tough time getting him down to the numbers he's been talking about. i made a pitch to him that he's got to have bipartisan support to get any of the numbers down anywhere close to where he wants to be because it's going to mean a lot of tax breaks and tax deductions far lot of group goes away >> so real quickly on health care, would you support the lindsey graham effort that's being put together right now >> no, no, i would not that's not going to go anywhere. no way they're going to get the support for it i would support patti murray, susan collins efforts over in the senate to look at individual marketplace that's cratering, you don't want the president saddled with 20 million uninsured people at the end of the day, it doesn't make sense i think it hurts his efforts overall. so we're great animated discussion at the meeting with both sides republicans and democrats pushing to support the problem solvers idea of making sure the csrs are in place, stability
fund, employer mandate repeal to a large degree, medical device tax and then flexibility for the states that's what everyone's talking about. >> all right congressman, thank you for joining us keep trying to soft those problems we very much appreciate it >> thanks, kelly >> representative kurt shrader after meeting with the president earlier today. meantime hurricane irma has destroyed up to -- destroyed up to 25% of the homes in the florida keys that's what fema said. we're going to get the latest on those damages and the power outages that remain there next and the storm damage to homes across the southern u.s. could have a big impact on banks. we're going to tell you how coming up. you're watching cnbc first in business worldwide when this bell rings... ...it starts a chain reaction... ...that's heard throughout the connected business world. at&t network security helps protect business, from the largest financial markets to the smallest transactions, by sensing cyber-attacks in near real time and automatically deploying countermeasures.
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with momentums damaged across the southern u.s., hurricanes harvey and irma could have a big impact on mortgages diana ulich joins with us those details. >> kelly, if hurricane katrina is any guide, mortgage delinquencies can spike significantly following a disruptive hurricane the housing damage from harvey could cause as many as 300,000 borrowers to become delinquent on their homes and 160,000 could become seriously delinquent. that is more than 90 days past due and that's when banks initiative foreclosures. this compared mortgage properties fema designated disaster areas to those in katrinas mortgage delinquencies in louisiana and mississippi disaster areas spiked 25
percentage points after katrina. now the same could happen in houston. homeowners will get some federal relief, but if rebuilding costs more than the principle they have in their homes, they could decide to walk away. now turning to florida and irma. you cannot use the same comparison because irma was a wind storm, not so much as a long-term flood disaster as harvey and katrina that said though, there are just over two million mortgaged properties in irma-related fema disaster areas, more than four times that of katrina and twice as many as harvey. total unpaid mortgage balances for ur ma areas is $370 billion. borrowers in florida also have much less home equity than those in houston because they were hit harder by the housing character. so if the math of rebuilding for them doesn't work as well, they could also walk away kelly. >> all right we'll see, diana, thank you. joining us to discuss the impact irma could have on the real estate market is the vice
president of international realty sadie, thanks for joining us, what's the early read on the lasting impact this could have >> kelly and mike, thank you for having me. the impact in miami, i think will be a positive one i lived through andrew and the market was slow, it was challenging like it is pretty much today in miami we've overbuilt again, and we are going to see a lot of movement with a market, a lot of people saying i don't to want deal with the hurricane, i want to sell my second or third home, had a flood, and i don't want to deal with it >> well, so saddy, if it was an overbuilt market and now people are fed up and wanting to get out of it, does that just add to the supply or you just mean it's going to kind of create more sort of two-sided action with this recovery process? >> well, i think at the same time it's going to create
opportunities. it's going to create opportunities for buyers, there's going to be a lot of more money flowing around, people are building, fixing, upgrading, downgrading, the buildings that stood still well, we'll have more activity, there'll be more sales the buildings that need some work, you know, we'll have to deal with that so you generally see more transactions, you know, after a situation like this. >> you already hearing from people, saddy? >> actually i am i'm actually here avoiding the hurricane in new york. and i got a call day and a half ago saying you know what, it's my third home, it flooded, i'm in the aisles, i just want to sell, then i've had calls of, you know, give me some opportunities and buy. so as personally, i do have seen already and have personal experiences of people already
calling me >> all right that's interesting we'll see how things clear out especially for some of these homes with damage. thanks for joining us. >> you're welcome. people in those florida keys are still reeling from hurricane irma they had 90% of the housing stock damaged. contessa brewer is down there and she has the latest, contessa >> reporter: kelly, president trump will visit some of the storm-damaged areas here in florida tomorrow he's planning to head to naples, according to sarah sanders he's likely to see some of the same kind of damage we're seeing here in the florida keys do you see behind me, there's a big yacht over a dock that is partially submerged. up and down from key largo to key west, same damage. massive storm surge, massive wind damage, and it really did a number on key west the historic hemmingway house had massive trees down outside, but i'm told no damage inside. the main streets in key west, i just got to see them today for the first time, passed the check
point, mostly cleared. neighbors pitching in on the help there duval street which many may have visited, still largely boarded up little signs though of catastrophic damage. the lights aren't working. there is running water only for two hours a day, you can't drink it cell service is nonexistent in many parts of that town and throughout the keys. and in fact, key west police told me they are still in search and recovery mode. senator marco rubio has urged another mandatory evacuation of the lower keys he calls the situation a recipe for disaster estimated 4,000 people rode out the storm in key west, and they're running low on supplies they told me today they have few options for buying more and by the way, little cash on hand to buy them even if they can find it. >> contessa, thank you >> reporter: at any rate i talked to -- >> yeah.
>> reporter: kelly, i was just going to tell you i talked to steve clark. i thought we were going to hear from him there he works in tourism. the number one something get the power back on, get the water back running, sanitation works so people can get in there and clean up these places. i did want to tell you in marathon which was marathon, why damaged, we saw verizon and at&t setting up mobile and cellphone towers, they have emergency operations command the marathon airport is open here for flights coming in and out. but the damage, kelly, oh, from up and down these keys, it is extensive and pervasive. >> i understand why senator rubio is saying evacuate contessa, thank you again for joining us contessa brewer is in the keys senator bernie sanders announcing his plans to expand medicare coverage to the entire population we'll have the details to his proposed legislation and the key democrats backing it, after this coming up, john mcafee will
senator bernie sanders introducing legislation today to expand medicare into a universal health insurance program called medicare for all kayla tausche has the details. >> reporter: bernie sanders' single pair plan calls for americans to get cards for their medical, dental, and vision needs, paid for by new taxes senator sanders says he wants to redistribute the status quo. >> we say the function of a rational health care system is
to provide quality care to all in a cost effective way. and not to continue a system which allows insurance companies and drug companies to make hundreds of billions in profits each year. >> reporter: it's a familiar platform for sanders but the newfound support from some 2020 democratic hopefuls shows how far the pendulum of the health care debate has swung. republicans announced their own plans today, gop senators graham and cassidy have a plan to keep obamacare taxes in place but funnel the revenues directly to the states the president supports that plan, in a statement he says, inaction is not an option, i sincerely hope senators graham and cassidy have found a way to address the health care crisis kelly, a by partisan backstop is
necessary before the end of the month to stabilize insurance markets. unclear whether that will get the white house's support. when asked about how the president feels about single pair, his press secretary said he thought it was a horrible idea back to you. >> kayla tausche, thank you very much martin shkreli is back in del urin new york city we'll go live to the courthouse when we come right back. ( ♪ ) dad: molly! trash! ( ♪ ) whoo! ( ♪ ) mom: hey, molly? it's time to go!
(bell ringing) class, let's turn to page 136, recessive traits skip generations. who would like to read? ( ♪ ) molly: i reprogrammed the robots to do the inspection. it's running much faster now. see? it's amazing, molly. thank you. ( ♪ ) 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, so you can get business done. american express open. some moments can so change everything.ss done. you can't always predict them,
welcome back pharma bad boy martin shkreli is back in court for a bail hearing starting at the top of the hour. meg terrell is in brooklyn outside the courthouse with details. meg? >> reporter: hey, kelly. we're back at the brooklyn federal courthouse a little schooner thanexpected in the trials of martin shkreli that's because prosecutors have asked the judge to revoke his bail and remand him into custody after saying he's engaging in an escalating pattern of threats and harassment, culminating most recently in a bizarre tweet where he offered $5,000 to anyone who would bring him one of hillary clinton's hairs now, later he updated that same post to say that it was satirical. but the government in its request for his bail to be revoked said that the secret service had to expend resources
on this. shkreli this week wrote a letter to the judge apologizing and asking her not to revoke his bail, saying, quote, it never occurred to me my awkward attempt at satire would cause mrs. clinton or the secret service any distress no sentencing date has yet been set. this is going to start in just a couple of minutes here in brooklyn, guys, we'll bring you any news from what happens inside that courthouse, kelly. back to you. >> meg, thank you very much. michael, i don't want to end with shkreli >> oh, no, it's cpi tomorrow morning. i know that's what you're going to be jazzed about as opposed to the bail hearing over there. >> we'll see if there is information. meg has a very difficult job, having to cover this whole thing. what was shkreli thinking with the hillary clinton hair pulling? >> the fascinating wrinkle he had somehow thought he had earned the benefit of the doubt that he could joke around about these things >> you're not somebody that
you've already taken satire on the web to such an extent that you're not sure whether it's satire or not. >> a bizarre and remarkable thing. >> i'm out of here for the rest of the week. do i need to pay attention to cgi? ppi this morning wanted it to be 3/10ths, it's only two that does it for "closing bell." "fast money" begins right now. "fast money" starts right now. live at the nasdaq markets, overlooking new york city's times square i'm melissa lee. apple is releasing its highly anticipated iphone x with the price tag of a thousand bucks, will it stop the widely expected iphone super cycle in its track? plus it was the cyberattack heard round the world. equifax is paying for it, down 30% since the breach one trader says there's even more pain ahead. the controversial and infamous john mcafee