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tv   Power Lunch  CNBC  September 26, 2017 1:00pm-3:00pm EDT

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we talked about it, they're up 15%. >> xle is running back into that crash. >> you're pushing the banks again? that's not what i asked you. is oil sustainable >> texas banks -- >> is oil sustainable -- >> yes, oil -- >> oil is sustainable -- i'm sorry, stephanie >> i liquidated that thought from my mind i apologize. we got to go thanks for watching. "power" starts now and we have a big six-pack of developing stories for you right now. one, moments from now, fed chair janet yellen set to answer questions about the economy and interest rates two, president trump holding a news conference this hour with the head of spain's government three, mitch mcconnell set to speak on the fate of the gop health care and maybe tax reform bills. four, a massive bribery scandal rocking college basketball a number of top assistant coaches arrested along with an adidas executive five, equifax says its ceo is retiring following that company's massive data breach. shares are down again. and six, much of puerto rico still without power, as president trump plans a visit.
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i'm brian sullivan and "power lunch" begins right now. welcome to "power lunch. i'm melissa lee. stocks are holding steady right now, struggling to hold on to gains. the ruffle 2,000 hit another record intraday high s&p, reversing yesterday's big losses financials are lagging today check out some of the movers we're watching disney is lower. the company testing a revamp of its retail store format for the first since 2010 as well as launching a new shopping website today. and red hat shares are rallying. the company raising earnings estimates and its outlook. darden taking a hit, expecting the hit from hurricane irma to be about double that of hurricane harvey brian? >> mel, thank you very much. we begin today with fed chair janet yellen speaking in front of economists in cleveland, ohio we will go to that event live once she begins taking questions. steve liesman, though, is here with highlights from janet yellen's speech.
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>> an important speech fed chair janet yellen going further than she has in the past and acknowledging that the fed may not understand the dynamic and may have policy wonks. she doesn't quite concede that and essentially ends up concluding, supporting the fed's current gradual rate hike policy, but leaves open the chance of easier policy in the future if inflation doesn't cooperate, moving back towards the first degree's 2% goals. she says, quote, persistently lower health care costs continue, achieving our 2% inflation grow over the medium term may require a more accommodative stance of monetary policy than might otherwise be appropriate. she said policy could be easier than anticipated in the future the fed is already on. and the fed should also be wary of moving too gradually and sources of low inflation should fade over time guys, i'll just conclude there
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and say it's a speculative speech that goes further than it has in the past that says, there could be stuff at work, globalization, technology, other things at work that are keeping prices low the fed may have to adjust but because there are risks on the other side, she's onboard with this continual policy of gradual adjustments to the rate hike >> when she comes down to it, does she sound more dovish or hawkish? >> i think she sound a little more dovish and she will have sounded more dovish in the future today if the inflation data doesn't cooperate if it doesn't cooperate and they change policy down the road, if he becomes convinced that there are underlying issues at the fed, they're not temporary, then this will be the time when she said, you know what, that path -- by the way, the path has already come down. right? we were looking at a 3% terminal rate for the fed it's now 2.75. the outlook for higher rates has come down. >> this is not 2001.
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technology, the internet, productivity, this is not new. why did it take so long for them to acknowledge this? >> have you followed economists for a long time? i get your point >> no, no, what's happening now is the expectation for higher inflation that comes from easy monetary policy, low unemployment, is not showing up in the dynamic they expected this idea of low unemployment, you should get higher wage growth, and you should get inflation -- it's not working that way and the question is, is it temporary or permanent and if it's permanent, it may require a change in monetary policy >> steve, thank you. steve liesman. we're also standing by for a joint news conference at the white house. president trump and the president of the spanish government expected to speak and make headlines eamon javers is live at the white house. hi, eamon. >> reporter: that's right, melissa. we expect to hear from the president at about 1:45 east coast time, but already, as you say, he's been making some news today on a couple of fronts. he says he's going to puerto
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rico as early as tuesday he says that's the soonest he can get there without being too disruptive to the situation on the ground he might also visit the virgin islands as well on that trip the president laying out some of the proposals he's got for tax reform we'll have the official announcement tomorrow in a major speech from the president. but he said there are four core principles here at stake for tax reform he said those are simplification of the overall tax code. he wants most americans to be able to do their taxes on one page, lower rates on business, lower rates on the middle class. he says he wants to nearly double the standard deduction for middle class folks and he also wants to raise the child tax credit and also, he wants to see repatriation of overseas profits for cooperations he says that could be trillions of dollars brought back into the u.s. economy the president also saying on health care that he wants to go back and see if he can repeal and replace obamacare. this is a promise on the campaign trail that the president's really not letting up on here, despite the legislative frustration that he's had up on capitol hill, time and time again, as he's
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tried to do that, including this week, where the current proposal seems nearly dead on capitol hill here's how the president expressed some of that frustration earlier today. >> at some point, there will be a repeal and replace but we'll see whether or not that point is now or will it be shortly thereafter but we are disappointed in certain so-called republicans. >> so the president saying at some point, there will be repeal and replace. he also said that there were so-called republicans who betrayed him, in essence, on this, and called into question their loyalty to the republican party, in effect with his comments there we'll hear from him at about 1:45 he'll have the opportunity to answer a couple of questions then >> eamon javers, thank you very much let's go right now to janet yellen who is beginning to take question questions. >> also on overall economic growth and the labor market. so, as i indicated, i think my main message about what we're
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seeing is that 2017, the shortfall in the inflation is a mystery. as of february of this year, inflation was running just under 2%, core inflation, and then we had a string of several months in which inflation was unexpectedly low so my expectation is that inflation data in the coming months on a monthly basis will move up somewhat, closer to our 2% objective but again, remember, inflation data is very noisy month to month. hopefully this isn't too much in the weeds, but there is residual seasonality -- >> yes, there is >> -- in inflation and inflation data that will tend to result, i
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believe, in lower inflation readings in the second half of the year that also makes an interpretation of monthly data difficult. finally, we have devastating hurricanes that have wreaked so much havoc for so many families and so many communities in our country. and that may be pushing inflation up, at least for a couple of months, we've seen it has an effect on gas prices. so, yes, we will be looking at inflation data very carefully, and trying to see what it tells us, but there is no easy read, i thi think. and as all of you know, we look very carefully at a wide range of statistics, but the data is noisy and it's not going to be a magic bullet that's going to tell us the answer, clearly.
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but weh'll be looking at it but let me just say, so a string of unusually low numbers would push in the direction of making us worry more about inflation. but the labor market is also relevant so we've been running at about 175,000 jobs a month for this entire year, which is well above the 100 or 120,000 pace that would be consistent with a staple, say, unemployment rate or labor utilization so we're on a path, intentionally so this is consistent with the fomc's projection, in which the labor market is getting tighter. unemployment is likely to drift and you can see that in our forecasts, below the level that we think is sustainable in the
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longer run, which, that's good that's a force that will tend to push inflation back to 2%, but there were also risks of a significant inflation overture that could leave us behind the curve and having to tighten policy faster than would be ideal. so we'll also be looking at labor market data. is it surprising in some way, for example, if it were surprising in terms of more strength than we had anticipated, that would tend to add a bit to the risks on the side of waiting too long so i'm sorry i can't give you a clear answer, but those are some of the things we'll be thinking about. >> staying on the topic of inflation, you've mentioned that stld be dangerous to see a material decline in inflation expectations and given that then, how do you
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view the possible of an inflation overshoot? >> we think it's extremely important that the public understand, we have a symmetric inflation objective. we would ideally like to be at 2%, but inflation is variable. and sometimes inflation is going to be below 2% and sometimes it's going above 2% and we feel identitically about overshoots and undershoots of inflation. we've had an overshoot it would not be a tragedy to see an overshoot in fact, it's something that we are to expect. and did change our statement of long-run goals, where we articulated our inflation
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objective back in 2012 about two years ago, we added the word symmetric to the language about our inflation objective to emphasize, 2% is not a ceiling. sometimes people think, well, we'd be willing to live with anything up to 2% inflation, but anything above that is absolutely terrible. no, that's not right 2% is our goal and it's symmetric. so just as we don't want shortfalls, we also don't want overshoots, was regard them as the same >> thank you should the fed differentiate between inflation caused by positive supply shocks versus negative demand shocks? >> i guess my basic answer would be no. we have the 2% inflation objective, and even if low inflation is caused by supply
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shocks, whether back in the second half of the 1990s, we had a marked acceleration in productivity and other positive supply shocks. if it's caused by supply shocks, we should still want to get back to 2% inflation. and part of the reason is that depending on the average level of nominal interest rates in an economy, depends on the average level of inflation if we accept ed accepted lower n as an ongoing objective in our 2% objective, we would see a corresponding lower level of short-term interest rates. and that would be a dangerous phenomenon, i believe, especially in this these times when the real level of neutral short-term interest rates is
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regarded as low, because if we were to experience a negative demand shock, the scope for easing monetary policy depends on the average level of short-term interest rates. and of course, we have other tools that we deployed when we were faced with a so-called zero lower band, back in 2008, when we effectively lowered short-term rates to zero, so there are tools available to be used but nevertheless we do see this scope for using our standard tools of monetary policy is not something i would like to see happen and simply allowing for whatever reason inflation to chronically run below 2%, i think would be a bad idea >> so that's a good segue.
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and given the number of questions that i've seen in the stack here, is the 2% inflation target too low should it be higher? >> well, this is a matter that quite a few academic and business economists are opining about. i should say that it is not something that the fmoc is currently considering or that we have on our agenda the reason that this idea is getting so much attention is one that thing is important for the public to understand and that is the evidence suggests that not just in the united states, but globally. and i would say largely due to slow productivity growth, which we've seen not just here, but in many parts of the world, as well as demographics, aging populations, it looks like, in some sense, the strength of
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underlying aggregate demand is weaker than it's been historically or let's say, there is a lot of intended savings, relative to investment and that's pushed down the level of the equilibrium real interest rate and in a world where equilibrium level of real interest rates are low, that's something that tends to mean the average level of short-term interest rates will be low well, with higher inflation, you would be raising the average level of short-term interest rates point for point. so it's a reason, namely, to give more scope for monetary policy to address adverse shocks that's something people argue could be accomplished with a higher level of inflation. but i guess i would simply say that in analyzing that, which i
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hope there will be research looking at it, we need to consider not only the benefits, but also the costs of a harg level of inflation and for a variety of reasons, higher inflation may distort price signals, may lead to more variable and volatile inflation and impose costs on people who have a variety of reasons to take it into account and planning so it's not a straight forward decision, it's something committee considered carefully years ago when we adopted 2%, but it would also need a serious reconsideration of cost and benefits >> okay. next question alludes to what maybe could be called a renewed global savings glut that's holding the down interest rates
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globally and that's also perhaps reflected in a very narrow term premium. can you comment on what factors you think are causing the narrowness of the premium and how that may evolve going forward? >> i guess, partly the term premium, you're talking about the united states or globally? >> u.s. >> so it is estimated the term premiums are quite narrow. partly the fifth large balance sheet was when we acquired those assets was consciously an attempt by removing duration from the markets and taking it on to our balance sheet. the conscious reason for that was to drive down longer term interest rates by driving down term premium as you know, we're gbeginning,
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we've announced the beginning of a very gradual and cautious process of beginning to shrunk our balance sheet again. but believe that our balance sheet is exerting and will for some time, some downward pressure in addition, i think there are significant spillovers from foreign monetary policies, globally, into u.s. interest rates. so the substantial asset purchases by the bank of japan and the ecb, i think are impacting, making our yields look attractive in comparison with theirs and capital inflows that have pushed those down. >> related to that, what would you give us a as a range of estimates, say, as we run off per, say, hundred billion of treasury securities, how much upward pressure would that put
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on the premium >> well, i guess i don't have a $100 billion metric for you, but i would say that according to a recent study, our program of asset purchases may have lowered term premium or long-term interest rates by around 100 basis points now, that does not mean that shrinking our balance sheet is going to raise them by 100 basis points for one thing, our balance sheet is sure to end up substantially smaller than it is now, at around $4.5 trillion it's likely it will almost surely end up substantially larger than it was before the financial crisis and there will be some upward pressure, i believe, on the term premium. i think it will be something
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gradual. and it will take place over many, many years so, you know, even by the time our balance sheet is normalized in size, the maturities of our balance sheet will probably remain longer than they used to be before the financial crisis so i think will be some upward pressure on term premiums, as our balance sheet shrinks, but nothing like the 800 basis points they cited. >> and last question, so the part of monetary policy that's -- i'm not going to use the term, auto pilot, but that is, so, as boring as watching paint dry, let's say, we've gotta taken care of. and then the policy rate normalization, you know, is expected to be reasonably predictable. do you think there are any
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downsized to that predictability, were there lessons to be drawn from the quarter point increase meeting after meeting after meeting at the time when you first joined the board? are there any downsides to that degree of predictability >> so i want to be careful i'm not sure that our path of rate increases will be predictable. the economy is capable of generating many surprises. and we will calibrate monetary policy, as i've tried to emphasize to unfolding developments in our reassessment of them. this has been a problem for us when we began to publish the committee's rate forecasts we thought that was something that was helpful, and we even drew in the median in our so-called dot plot with our rate forecast, because we thought it would be helpful to the public
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in getting a sense of what the committee thought would be appropriate policy given their view of how economic developments would unfold. and i would characterize the path that you see now and have for a long time as a gradual path but i want to emphasize, that path is subject to a great deal of uncertainty and there is nothing set in stone, not for the committee as a hole and not for any single individual who is writing down their forecast we're all looking at incoming data and revising our views. as i mentioned in the talk, our views over the last several years on the sustainable longer run level of unemployment has moved down considerably. the equilibrium real rate of
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interest, which is an important determinative of what that path looks like, it has also moved down considerably, and we're not alone. professional forecasters like yourselves, you've also moved those estimates down so what we should do is, we're surprised. so there will be lwill be more s and of course, there are all sorts of shox to the economy, when we started raising the federal funds rate in 2015, i believe, our first dot plot suggested there would be three or four increases that first year and there was one and in 2016, we again raised the funds rate once, although i believe at the beginning of the year, the medium suggested committee participants thought there would be four greaseincre. now, i look back on that and i don't feel it was a mistake. i think monetary policy now so well positioned.
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there were shocks, there were global shocks that accounted for that and changes in our outlook and assessments of the equilibrium real weight of interest so i'm not envisioning a predictable path, anything like that, quarter point, predictable, meeting after meeting, path. but i do think there are good reasons to think that even if not perfectly predictable, the path is likely to be gradual one reason is that most economists estimate that the equilibrium real rate of interest is low. so that means that monetary policy, while currently accommodative, and, you know, labor market continues to tighten, you know, we have low inflati inflation, we're below 2% in terms of inflation and there's not that much accommodation left, if the equilibrium really continues low. so to get to a neutral stance would require a bit more
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tightening, but not an excessive amount so i think gradual was reasonable >> okay. so that then, stewart, we're done that will conclude our remarks thank you so much for being with us [ cheers and applause >> we've been listening to federal reserve chair janet yellen a wrapping her remarks in cleveland. let's get a reaction from our panel. we have larry kudlow and steve liesman. steve, to you first. part of her remarks and what she said in the q&a was about inflation and inflation seems to sort of be the pivot here in terms of whether or not she toox with the set pace. >> i'm having a bunch of arguments with people over, was this a hawkic or dovish speech >> that's why i ask you. >> here's the dovish case. the dovish case, she went further than shae's gone before in entertaining the possibility
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that the fed has the inflation dynamic wrong and may have to respond. >> best part of her testimony. best >> okay. that's a dovish -- okay, thank you, larry are you doing running commentary on us -- >> no, lay it all out. >> i'm joking with my good friend larry kudlow. the hawkish part of this, she goes through this rather ornate and complicated explanation and theorizing about how inflation could be wrong and may change policy, but ultimately concludes on the current policy. and says, despite all of this, we're going to stick with gradual rate hikes and i'm worried about the idea that we won't be -- that we're going to be too far behind the curve. we can't wait until inflation is back at 2% to start raising rates. i find it -- when you say the market has not really reacted much, i think that's the response of a whole bunch of people fighting it out to a draw on was this a hawkish or dovish speech >> i think it's -- if i get a vote in this whole thing, i think it's exactly what the markets thought to begin with.
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>> she said nothing. that's basically -- >> no, no, no, that she wants t proceed on this path -- >> let me add one factoid to the conversation before it begins, which is the probability of a rate hike in december did bump up a little bit. 4 or 5 percentage points, depending on what measure you use. >> speeches like this give her an opportunity to lay out her world view, which she did. 16 pages worth or 17 pages worth, okay? on page 14, i want to read this, the influence of labor utilization on inflation has become quite modest over the past 20 years. implying that the inflationary consequences of misjudging the sustainable rate of unemployment are low. let me just rephrase that. don't watch labor markets. they do not reflect inflation. they are, at best, a lagging, lagging indicator. it isn't 20 years, it's actually close to 40 years now that we've
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seen this. and in a 17-page speech, she doesn't mention money supply once she mentions the exchange rate of the dollar once, but says it's transitory. she does mention the market, the tips rate -- >> can i give some background -- >> no, no, wihold on -- >> you believe the fed has the whole inflation dynamic wrong? >> wrong >> which is that it's not tied to labor and you believe that it ought to be tide to a price basket -- >> that is correct >> i want people to understand what you're saying and why you're pointing it out >> one mention of the dollar in 17 pages, which i would regard as one of the premiere influences on inflation, no mention of commodities or commodity baskets. >> can somebody give me a one-line headline in an hour and a half long presentation you know what i heard, mashed potatoes and gravy >> because you weren't listening. i gave you the explanation >> you gave me the explanation, but the market has said that we know what was coming from this >> let's bring in dennis garvin.
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>> i think it was one of the most boring speeches we have heard in a long period of time no change whatsoever she made it abundantly clear that rates are probably going to rise by the end of the year. she re-stated what the fmoc said in their post-meeting communique the other day. i don't think anything important came from this conversation at pul all. >> i think you're not paying attention. >> give us the -- >> i'm telling you, the federal reserve has one thing that it says it can do, which is to increase the inflation rate -- >> no, she said just the opposite >> no, no, no! the thinking of the federal reserve is that it can control one variable in the economy. that is the inflation variable what you have now is a fed chair stepping up to say, i have my doubts about our ability to create this. and this has implications for policy down the road >> look, she said -- let me go back to this and as i said to melissa
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earlier -- >> i think brian asked for a single world i would say that word is optionalty, right? she wants to raise rates, but the inflation data hasn't supported that case. if she sees the inflation, she'll continue to progress in an accelerating fashion. the last one's print on inflation was the first one that was not actually disappointing on the low side in six months. if we continue to see that trend, they'll raise rates in december the question is, will it actually happen? because there clearly is a mystery around the fact that a tight labor market is not -- >> and it's global >> and steve, i think you brought up the one big thing that's come out of this, which is, we know this it's fair to say, the fed is going to likely raise rates over the next couple of years, fair to say, yes? >> yes, it wants to do that. >> what we talked about the other day, what matters is the pace and the volume, and what you just said, which i think is the takeaway, is that the odds of a december rate hike have probably crept up and maybe the pace of rate hikes have crept up >> that's a trading takeaway,
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with okay? and you're right -- >> well, we are cnbc >> i just want to note this again. i don't believe -- >> there's a -- >> i don't believe the federal reserve's models and their structural thinking -- >> this is why it's important -- >> let me finish, do not understand the causes of inflation. that's point number one. they do not understand the monetary causes, the exchange rate causes, nor the need to look at forward-looking market indicators, such as commodities or -- they don't get that. i don't think they have the power to move the inflation rate one way or another >> so what is your takeaway? >> my takeaway is -- >> that they're going to get this wrong because they're looking at the wrong thing >> basically -- >> looking with you've had -- hang on. two more things, okay? more growth, more people working at better salaries and wages do not cause inflation. what causes inflation? excess money, which will be revealed in the foreign exchange and commodity markets and bond
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markets. that's the model they should use. that's the model that volcker used and greenspan used very, very successfully. >> i want to throw an analogy out -- the fed has a system they believe predicts inflation imagine the mayas built a pyramid and it's supposed to line up with the sun in the fall, the spring, and the winter and all of a sudden, it's not lining up. the edifice that they have built, which is designed to predict control and otherwise be able to set inflation rate, is t not working. what i think is significant, what larry is saying, larry has o another idea i don't necessarily agree with larry's idea, but it's an opening not only for people like mr. kudlow, but for people like mr. president trump that might appoint to the federal reserve that might come in with a different idea they've been covering the fed for 20 years at no time in this 20-year period is the essential inflation dynamic under question
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now -- >> let me take it even more bluntly. what i believe the president wants is a reformer at the fed, who will get rid of the models or at the very least, put a new model in to counter the old models so you can pick and choose >> so you think that yellen is out? >> personally? >> yeah. >> i do. >> yeah. >> i do. this is just my opinion. i'm not -- >> let's get to the action eric -- i'm sorry, next time you've got to be on set. >> no disrespect for mr. yellen, by the way >> so if your clients call you today, and you heard what steve and larry and dennis are saying, that maybe the inflation dynamic has changed twb pace or the timing of rate hikes has changed. that's what your clients care about. because that's going to influence how you allocate money going forward. what, if anything, are you going to change about your fundamental strategy, based on what you heard and what we have talked
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about? >> actually, our strategy was based on our assertion that they want to raise rates in september, but the inflation data is likely to disappoint and prevent them from doing it you've seen the market basically tell the fed this entire year that their belief in the reflationary trade of the post-election is becoming less and less and less. and so they've lowered the ten-year, lowered the 30-year yields the market is flashing like an oil light on a dashboard saying, you might be going too fast. if we see inflation pick up, which we expect, because in a world of supply and demand, when there's a scarcity of labor, as there is, i talk anecdotally to thousands of people across the country and they're all telling me they're having trouble finding workers, should lead to higher wages which should support the higher inflation >> last word, just last night on "fast money," you predicted that oil would go higher. >> yes >> so in that world, which you think there is inflation in commodities -- >> there is inflation in
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commodities. take a look at the universe of commodities. the grain markets refuse to go to new lows. the crude oil market, demand is extremely strong most commodity markets are moving higher, not lower nobody is paying attention to that and i think we should be. >> we should and this is part of my beef. >> this has got to be the last word >> all right, last word. you've heard rising commodity prices for about a year? >> yeah. more than that, actually >> rising gold and a slipping dollar it's not an emergency, but these are the kinds of things the fed should be looking at, she should have mentioned it in her speech. it's not more people working, it's whether we have too much money in the system. more money that's the key that they are missing. and by the way, dennis, we're the oldest people probably in the entire -- >> in the whole universe >> who is wrong with price stability? >> nothing is wrong with price stability. we'll have to end it on that, guys we are out of time dennis gartman, larry kudlow,
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steve liesman, eric briseban, appreciate your time up next, carnival ceo joins us next to talk impact from the hurricanes and on the cruise industry and we're standing by for a joint white house nouz conference president trump and the president of the spanish government expected to speak any moment now 'lbryothe ve when it begins. for tech advice. with one phone call, i get products that suit my needs and i get back to business. ♪
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shares of carnival cruise lines rallying on the back of earnings and the numbers coming amid concerns about the impact of the recent hurricanes on the cruise and travel industry, as well as the health and infrastructure of the caribbean. seema mody is here now with more >> brian and melissa, the three category 5 hurricanes we saw in the last month has had a significant impact on the multi-billion-dollar cruise industry, promptingsome of the major cruise lines to cancel and modify several itineraries and search for other destinations aahead of the peak winter travel season the world's largest cruise operator, carnival, reporting better than expected earnings this morning, but its guidance for q4 suggesting that earnings will be impacted joining us now for a "power
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lunch" exclusive, arnold donald, president and ceo of carnival corporation. arnold, thank you very much for joining us today >> glad to be with you good afternoon >> so help us understand how these temporary court closures are going to impact the fourth quarter. i'm hearing about a 10 to 12-cent reduction in earnings? >> that's true it's exacted us about 10 to 12 cents in the fourth quarter. but as you saw, we raised our guidance for the full year so we're able to perform well for our shareholders in spite of that i think the most important thing about the caribbean, though, is that there are a number of ports that have been temporarily impacted that people frequent often on cruise ships, but there are over 40 ports that are up and operating, and of course, of our own destinations, also, we have private islands and other destinations are operating in all the ports in mexico. there are plenty places to go. we have over 20 ships right now in the caribbean, sailing full and people are having a great time >> on the conference call, you
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said the caribbean is back to business so surprisingly optimistic tone, given the devastation we're seeing in much of the caribbean, specifically the eastern side, st. martin and st. thomas, the fact that you're raising your full-year forecast, that's little bit suspect, given that we still don't know when a lot of these islands will fully recover. >> well, we have a global business, and unfortunately, every year, things happen. geopolitical tensions, disease scares, typhoons, hurricanes, cyclones, year in and year out so as part of our business, of course, we keep the ships safe and the guests and crews safe. we do have occasionally ports impacted, but our assets are mobile we stay away from the storms and sail people to fun places and entertaining places and cultural places you know, away from the devastation. of course, also, i would like to say to anyone impacted, whether it's the mexican earthquake or, you know, hurricane irma or harvey, typhoon talim, hurricane
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maria, obviously, our total support and condolences to those and we stepped up as the entire cruise industry has, both with financial contributions, but also getting supplies to places quickly, when they need it >> arnold, what are some of the popular ports -- you had mentioned that they are some of the most popular ports that were really devastated by the hurricanes are some of them just not going to be visited by carnival cruise lines in the next year give us an idea of what the devastation has been or how quickly this region can bounce back >> i went to st. martin a few days after the hurricane hit obviously, there's a lot of trash and landscaping that has to be done there's sand in the promenade there in st. martins when i was there. a lot of the marina, there was lots of ships, you know, boats, yachts, fishing boats, et cetera, smashed and what have you. all of that can be cleaned up and the people are resilient they mentioned to me a few years ago when louis hit, a number of
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years ago when louis hit, the island was out of power for three months this time, a number of districts had only been a few days after the hurricane and a number of districts on the island, the power was already up and running. the people are resilient i would be very surprised if st. martins isn't up and running before christmas the port itself is not overly damaged. the main thing is to get the beaches cleaned up, get the skur excursions ready we have an excursion there, a zip line adventure activity. i know ours will be up and running before december for certain. i think a lot of these places will be coming back. but meanwhile, there are so many beautiful places to go in addition to those places, or while they're recovering there's ocho rios, the entire southern caribbean, the eastern caribbean -- >> yeah, 44 options in the caribbean -- >> yeah, i was in nassau on friday and it was fantastic. >> arnold, great to see you. arnold donald of carnival and our own seema mody >> let's get to our own john
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harwood in washington, d.c. with some breaking news >> brian, in advance of that presidential news conference that we're waiting for, the treasury department has announced some new steps in its continuing effort to squeeze financially the north korean regime in an attempt to deter its nuclear program. treasury announced the sanctioning of eight north korean banks, 26 individuals who represent those banks in china, russia, libya, and the uae of course, this comes on top of the new sanctions that were announced at the united nations, when president trump was there last week. we'll see whether these steps have anymore success than we've seen in the past, guys >> all right john, thank you. john harwood in washington a massive bribery scandal rocking the world of college basketball we're all over this developing story. plus, we're standing by for a joint white house news conference pr president trump and the president of the spanish government expected to speak any moment we'll bring you there live as soon as it begins. >> hello, melissa. hello, everyone. here's what's happening at this
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hour house speaker paul ryan says that puerto rico will get all the assistance needed in the aftermath of hurricanes irma and maria. he pledged that support during the gop leadership press conference earlier this morning. >> i want the people of puerto rico to know, that we are in this with them right now this is a rescue people missio mission. the bill we passed out of here a couple weeks ago for fema, equally applies to puerto rico >> lawmakers for the nationalist anti-migrant alternative for germany, or afd party, which entered apartment for the first time in this last election, meating in berlin today, but angela merkel, who won a fourth term, has said that they will have no influence in her new government netflix will reportedly start partnering with airlines next year to provide them with its mobile streaming technology. "variety" says the move is part of efforts to get airlines to
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offer betterin-service wi-fi that's the newupte ts dahis hour "power lunch" is back in two minutes' time.
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just a reminder that we are awaiting a joint news conference at the white house between president trump and the prime of the spanish government they are expected to speak any moment now we're beginning to bring that to you live when it begins. we are also waiting for commentary from senate majority leader mitch mcconnell on the fate of the republican health care bill. we are monitoring that and we'll bring you any headlines across melissa, i believe we're getting a couple right now >> senator robert says, it would appear, in quotes, there will be no vote on graham/cassidy. robert saying that mcconnell along with senators cassidy, graham decided there were not enough votes for the health care bill so perhaps just official word now that the effort -- the latest effort to repeal and replace is put aside >> yeah, and another headlines crossing is that roberts has said that they are still going to try to tackle health care in
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some form later this session i know, melissa, there's been some commentary, and this is where we probably need harwood, that the republicans, while this health care bill, graham cassidy may be dead, that the health care bill may try to live on inside of a tax bill that they may attach it to a broader tax reform package, and so the u.s. attorney in manhattan is holding a briefing a short time ago. contessa brewer is there with the latest >> reporter: yes, federal prosecutors outlined schemes of
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the coaches and financial advisers and adidas, one team says a top executive arranged bribes to attend the preferred school for adidas, one of the top sponsored school the director of global marketing for basketball is accused of arranging $100,000 payments to get the player to attend the school adidas released a statement this morning today we are aware and we are learning of the situation. we are unaware of any misconducts and we'll fully cooperate with authorities to understand more. they all have put out statements promising their full cooperations of the investigation. we are waiting to hear from other universities
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christian dockin and the cfa of the princeton advisory group are accused of being the match here. the four coaches trying to get them to direct athletes back to their financial and agent services when players become nba stars. investigators say look, there is no place for pay to play in college basketball contessa, it is an incredible complicated story. there are two separate cases brought by the u.s. attorney generals i think you laid it out very well what's amazing is how this peels back the onion on the money involved in college sports and in particular college basketball, we know it is there. the fbi really digs in they are basically paying high school players to go to a certain college in the hope that they are wearing adidas shoe and becoming proplayers some day and
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once they do sign with mr. princeton's advisory group and pay him wealth management fees they are bribing players in the hope of five or six years down the road becoming enriched by their success. >> reporter: i should mention, too, no universities have been charged or student athletes have been charged or adidas have not been charged today is out in the opening and they're asking for more tips and anyone who knows anything to call in the tip line this could be the tip of the icebe iceberg. it is remarkable in the complaints we put the cash payments off the books and on the books it is not for the purpose we say it is. it start to make us question how are you spending so much money $100,000 a time on one family and not knowing where that's going and where it is coming from and identifying it as such. all to get that student and high
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schooler to attend an adidas sponsored high school camp and another bribe to get them to attend one of the universities and the university of miami as you laid them out. it is pretty clear that the enrollment number matched up perfectly. contessa brewer, thank you very much we are standing by for a joint white house news conference of president trump and the spanish government is expected to speak in a moment, we'll bring it to you live when it begins. r to help the people
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that's hit in both places. we have been treated very nicely by the governor and everybody else they know how hard we are working and what a good job we are doing. as we speak fema, our great respondse responders and all federal resources and including the military are saving lives and protecting family and beginning a long restoration process i have direct all agents to assist in response recovery
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pressure the entire work force is doing great work in puerto rico and i appreciate that he's saying it he's saying it to everybody that he will listen and then florida and with other steps along the way and any further one he will say onto the trump administration and the relationship of fema and my team is very strong i will be going to puerto rico on tuesday and i will be going to the u.s. very gin islands over the last several weeks, our nations have been tested by the destructive force of mother nature but we'll respond to it by a mightier force. the results of the americans spirit like louisiana and texas are in good shape and moving along well we thank all first responders
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and volunteers for risking their lives. that's what they did, they risked their lives the recovery process will be a very difficult one we'll get through this and we'll get through it together. we'll be stronger. we'll be bigger and we'll be better thank you very much. united states in spain are great friends and close allies our bonds go back many centuries. our schools teaching many about spain history and our measures treasure beautiful works of arts music and films are all myersdml over the world it is a greatly admired country.
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the deep relationships wheen our two people is a strong foundation for lasting cooperations on behalf of the american people, i want to express our support and extend our prayers to all of those affected by the vile terror attack in spain last month. i want to assure that the people of spain america stands with you and confronting these evils that threatens all humanity we'll continue to deny the terrorist they are funding and territory and any form of support for their wicked ideology this fight, america greatly appreciate spain's contribution to the coalition to defeat isis. spanish troops have trained more than 30,000 members of the iraqis force for us. we thank the spanish people for being such gracious host
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the united states and spain together facing many critical dangers and challenges from north korea to iran and venezue venezuela. we thank spain to expel its north korea and ambassador and for standing with us and our efforts to ice isolasolate, thel north korean regime. north korea threaten the entire world with unthinkable lost of life i appreciate the united nations security council voting twice.
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unanimou unanimous. i recently issued tough new sanctions against those who do business with our regime i applaud china's latest action to restrict its trade with north korea and particularly i applaud china for breaking off all banking relationships with north korea, something that people would have thought unthinkable even two months ago. i want to thank president xi jinping. we have seen the breaking tragedy of maduro in venezuela spain have been helpful, we thank you for your efforts we hope our friends in the eu will soon follow the united states canada and many latin america nations in sanctioning
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the maduro aregime we need everybody involved the citizens have endured poverty and endangers and political unrest together spain and the united states hope for peace for the restoration of democracy and the release of all political prisoner where ever socialism spreads, misery follows the people of venezuela deserves a future of freedom. these are great people in the economic arena, we support trades that benefit both spain and the united states. it means it must be fair and must be reciprocal, such an important word, it has not been used much in the united states -- reciprocal >> i commend spanish leaders,
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and considering the fact that our stock markets have hit an all time highs i think they like the united states very much this is time for both tremendous opportunities before our world but also serious dangers as i said at the united nations which future really is up to us. if we empower our citizens, serve their needs and appeal to all that is best in the humans spirit that i have no doubt we'll succeed like never ever before mr. president, i will look forward to working with you to build the future prosperity and peace for both spain and for the united states of america thank you very much. thank you.
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>> translator: i would like to start expressing many i solidarity of the spanish people and with the people of the u.s. government after the terrible events president trump just referred to. and, it took place in texas, florida and other u.s. regions and puerto rico. we hope and wish that if one can be changed and we hope in the future we can do as best as possible president trump and i have a working meeting today which was very productive and we went through our bilateral relations, spain and the united states are two great partners we share values democracy and
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freedom and respect for human right and the rule of law and we have institutional corporate ties which are very important relations between the two countries have been excellent. we must continue to work and strengthen those relations even more, especially in the economic arena. that's why our priorities t to -- strengthen the economy is off key. trades between the two companies are growing. the united states is our second top trading partners outside of europe the united states are toughest expor destination. it is the top investor in spain. for many years, spanish companies have invested in the u.s. they are creating many stable and high quality jobs in
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different sectors such as the financial industry and this has been possible, thank to the establishment of subsidiaries in the united states and they'll continue to create jobs. that's why they follow closely investment opportunities in the united states and they can contribute their technology and experience to the united states. i have also given details to president trump on spain's rule in different crisis which were important to us all. combatting terror is something that we talked at lengths. we have been hit by terrorist attacks on our soil both
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both -- soils. both countries have cooperated closely in the police military and intelligence area i have also said that i am sure that we still need to do a lot in the area of intelligence, we need to improve the coordination mechanism in the area of cyber security or preventing recruitment and financing of terrorists i have also under scored spain's rule as a member of global terrorism and our deployment in iraq which is very large and we have trained over 32,000 officers and in addition to that i have told president trump that we'll increase our commitment with the new phase after the fall of mosul by contributing a new financial package to rebuild iraq we also have long relations and
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defense. both nato and bilaterally the spanish and which are increasingly important strategically, our agreement goes back to 1988 at the time and spain was not the backseat of the alliance and right now we are at the forefront defense security relations are excellent. we won't want that to spill over in other areas of the bilateral relations. regarding the international situation, we have agreed that the challenge by north korea to be non proliferation regime is an intolerable violation of legality and i expressed the full support of the spanish government to the stepping up
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sanctions as aprovproved by the united nations we know the europeans are working on new measure and spain will continue to press for a firm comment stance of support of the u.s. and its regional allies i have also reminded president trump that the spanish government has taken measures that have reduced to the diplomatic presence of north korea and our country. president trump has thanked me for the firm position, my government has taken and the measures we adopted and regardiregar regarding venezuela, we exchanged views on the world and the country that it is moving in and implications that it has we noted that there is a need to sustain international pressure on venezuela government so that it commits to negotiations which will enable us to find a
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democratic negotiator to the solution of the current crisis i reminded president trump -- so we have gone through the political and economic situation of both of our country, spain and the united states are two democracies and friends and allies of many common values and interests and we have agreed to work together in the area of defensive values i would like to thank the warm welcome that was extended to us by president trump and his team at the white house i would also like to under score the friendship that exists between the united states and spain, thank you >> thank you >> steve
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>> i was ashamed of what was take b plan place. to me, the nfl situation is a very important situation and i have heard that before of what was preoccupied. not at all i have plenty of time on my hands, all i do is work. to be honest with you, that's an important function of working, it is call ed respect for our country. many people have died, many, many people, many people was horribly are in danger many people at the hospital i saw our children are missing legs and arms. they were fighting for our flag and for our national anthem.
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for people disrespecting that by kneeling during the playing of our national anthem, i think it is disgraceful again, i read you apart of this quote. the governor of puerto rico are thankful of the job that we are doing, we dade great job in texas and florida and we hit little pieces in georgia and alabama. it is the most difficult job because it is on tp island in the middle of the ocean. you cannot just drive your trucks there from other states the governor says we are doing a great job. in fact, he thanked me specifically for fema and all first responders from puerto rico we mentioned with that the u.s. virgin islands it was devastated. we are focused on that it does not take me long to put out a raw and maybe i will get it right, i think it is an important thing for the nfl not
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to allow people to kneel during the playing of our national anthem to respect our country and respect our flag, okay >> thank you >> what is your advice to the president dealing with north korea? >> no one wishes for there to be a war any where in the world but it is true the recent ercvents n north korea with implications in the neighboring country, very important countries and means that we all have to be force full and those others to defend our values of democracy and freedom and human rights have to let north korea know that it is not going to go anywhere of that
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direction for the time being spain will support any political decisions which will contribute to putting an end to a situation and which had nothing to do with the principles and values of most western and global democracy defense. >> thank you we don't know whether your conversation, you discussed the cattle land situation and this is a question for president trump, do you support what the spanish government is doing rega regarding this and i want to ask whether he fears there maybe a unilateral declaration independent of
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cataloni do then >> we are dealing with a great, great country. it should be reunited. i have been watching it unfold it is actually been unfolding for centuries and i think that nobody knows if they are going to have a vote i think the president would say they're not going to have a vote the people would be very much opposed to that. i can say speaking from myself, i would like to see spain continued to be united >> trans lator: the decision to unilaterally is not something that i would make, it is a decision that will have to be made by the cattle land government, i think it would be very wrong and i think that right now when everyone knows that the referendum cannot take
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place, there is not a team organizing the referendum. they are not ballots or people at the voting stations so it is crazy and this leads to noise and certainly there can be a val valid democratic referendum and what would make sense in a situation such as this is to go back to common sense and put an end to this whole story. the only thing it is doing is generating divisions and tensions and it is not contributing in any way to the citizens situations. i want this is to be resolved as soon as possible and i want us to go into a new stage where the rule of law dialogue and common sense will revail revailprevail. >> major gar rretgarret, yes, c.
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[ inaudible >> are ucoyou contemplating of special air assess to puerto rico the foreign minister you have declared war effectively on north korea i would like your reaction >> well, i will answer your second one first >> we are totally prepared for the second option. it is not a preferred option if we take that option, it would be devastating i can tell you that. that's called the military action if we have to take it, we will
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he's acting very badly he's saying things that should never be said. and we are replying to those things but it is a reply it is not an original segment. the things he said in past administration, north korea is a situation should have been handled 25 years ago or ten years ago, it could have been handled much more easily. >> with that, i will turn to senator graham >> thank you, senator mcconnell. where we are at? we are back-to-back graham cassidy passing of graham johnson. washington is returning it to their states and give their constituents more say of their
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healthcare there is universal agreement of mckayer's feeling cannot be repaired and flawed. >> our democratic friends are talking about bipartisan and basically changes obamacare does not prop it up in terms of alaska, i have learned a lot of alaska healthcare, i will talk to you privately of a drink our friends in alaska and there is 750,000 people in the state of alaska and twice the size of texas. i found out things about other states that i have never dreamed of with a process that gives more attention and time, we'll repeal and replace obamacare with a block grant called graham-cassidy the missing agreement is republicans have been. we know what we don't like obamacare is not working
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we make that case effectively. we had a hard time articulating what we are for until now. >> now we have something to talk about that makes sense the 50 republican senators, a lot of governors and i hope the american people. >> if you are a single payer and believers and god bless you, what we are proposing is the end of healthcare and washington this is an idea that work with welfare reform 1996, congress and the bipartisan fashion under bill clinton took the welfare system and blocked it and brought it back to the united states and achieving a lot of success in welfare reform i am convinced that innovation and flexibility is the key to sustainable and trump's care >> we are down to one profter in
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my state and 2014 in my state, we had a 31% increase and south carolina alone the good news for america are republicans. we are going to improve your healthcare by giving you access to people that care more about you at home than any bureucrats. now i believe this with all my heart that a governor and a state house member is going to listen closer to you and compare about more about your family to the sleleaders. as complicated and difficult
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politics, instead of quit, you allowed us to move forward and oh my god, how far we have come in a sport time. >> president trump, thank you for engaging governor pence have shown us with flexibility, gofr can improve quality and it is called healthy in the end >> the leadership thing is going everything we asked them we'll have time to e plain our concept and have a better process and we'll take this show on the road. doctor cassidy has a heart unlike anybody else for reform and understanding of people when it comes to healthcare that i can never hope to mactch. for decades, he worked in hospitals serving under privilege people if the patients are the focus of
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the exercise, tr outcome are better >> dean heller em embraces the idea of giving nevada more money. we can do better if you let us rick santorum started this process. i have been here for 20 year, i have never anything enjoyed more i believe this is the most important thing that i can do with my country and work with where i live we are going to get there to my republican colleagues, we are going to fulfill our promise to repeal and replace to the american people, we are going to improve healthcare for you. >> at the end of the day, that's the only practice it matters
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>> well, with the series political crisis in spain because of referendum on many matter >> do you think there should be a dialogue for the government top find solution and questions for prime minister, what you are managing things over catalona is having an impact i would like to know where you think of the situation can be resolved or do you think you will have to call for explanatio explanations >> thank you the people of catalonia have been talking about this for a long time. if f accurate numbers and phones and you will find that they love their country and spain. they would not lever i am warning you now, it is
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spain and i peek as the president of the united states as somebody that has great respect for your president and really great respect for your great country. i believe the people of talona >> we are delaying much of in part of it because when we submit the budget, we'll need the support to approve them and we are talking about different political parties. i don't think we'll have any problems in approving within a reasonable time frame. we are looking for a majority
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just like we did last time around when we voted for the budget at any rate, i am not thinking at all about calling an early elections. mr. president, thank you very much there we have a duo wrap up there ech there. you have heard president trump making comments of catalonium independence as well >> you heard leaders coming out talking about hotel care as well >> both on dc on separate topics lets prap bring it up and bringt together >> we heard have lynn neo-nazi graham and the two -- republican
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leaders are announcing there will not be a vote on this week on the proposal. >> makiewicz cjohn mccain and s collinss and like lie it will be different. lyndsey gram got so much disappointment on this issue, he set the stage for potential further disappointments by saying yeah, we'll pass this soon we'll get there and go to a lock range approach there is no evidence right now that they're able to that that that's the story they are telling their base right now as they exit and trying to get on this >> larry, your take? >> well, i agree i think it is the most spicing depossession that senatoren rand called who's the bill was not to his
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lighting >> i felt all along this is imperfect piece of legislation >> it would have make agent step towards over turning obamacare >> yes, after they get tax reform, looks that's just guess. >> that was the strangest thing ever >> the economy shotting in the i can't remember, ast going to come out and they're writing or texting to that plant. >> as we speak right now here. it is my fn it is very strong and businesses and strong for middle income people and investments and repatriotism to me is what the doctors ordered. i would prefer tax cuts first in january. >> should the gop drop the
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attempts on healthcare reforms >> mcconnell says they'll focus on healthcare after taxes. >> wuld show just forget about healthcare >> we are talking about in lapd, a couple of months from now, you said you have participated in, it took reagan to get three years to get tax reform done republicans seem to be replacing the time lines on itself which are not reasonable >> but, you are quite right. the broader tax reform i had a lot of dem rat i can support that's no t the the workplace today. i want tax reform similprelim pn
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all that and convinces and bringing money home and i hate to say it but it sounds to me that i have not filed a doctor, it sounds to lee like a lot one of steve mnuchin and so forth i am glad. trump is the only guy left in washington the one of 15% of corporate tax rate we'll not goif up on that. >> steve moore lives in washington, we'll see how that turns out. it is going to be low and it is going to help everybody. >> you are light ai agree for now, lets get the tax done ding thing at all. >> they can get it done between now and year end >> we have to go of this con congress we'll talk about the big scandal coming up. people are accused of paying
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players to go to several colleges >> that's called a sweetener [ laughter ] >> don't forgots the corn house subsidy for obamacare. >> you said it and not i did and the ceo of equifax is retiring much more about that, coming up. t-mobile never stops. we've doubled our lte coverage. we're already the fastest 4g lte network, and we just keep getting faster. and now america's best unlimited gets even more powerful when you pair it with the new iphone everyone is excited about. introducing the amazing iphone 8. it's the best iphone yet, now on america's best unlimited network. for a limited time, save up to three hundred dollars on iphone 8. and now, join t-mobile's iphone upgrade program for free.
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and at $4.95, you can trade with a clear advantage. witness katy perry. witness katy perry become a legal witness. witness katy perry and left shark. or a card shark. grandma?
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that the the does mattis department have been looking at this they are a specialty that comes with pyre twired taps there are two major schemes here these financial adviser types would pay coaches cash and coaches would return spear players to the adviser when they got to the northbound. >> what does not seem like a good business ideas and it does seem like it is very binding and nab players want wanted to do what ever he wants and the other was also paying bribes, of course, allegedly to other advisers to spear high school adds believes over top universities that had a contact with that company. that's even more serious because if it essentially indicate and
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not only the universities or coaches and that's major multi national million dare. >> the guy that's involved, and to your point, danny, not going through extensively. they were paying high school players not only to go to two colleges, and university miami as hifted but also ateptending certain high schools adidas at one point had the within of the players telling you the exactly. i thought it is quoting off tr books. fundamentali it is incredible >> it is incredible. >> you have to believe that there is some sort of record even people may have false fie
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documents or maybe there is other people involved. we don't know at this point. but it is duifficult to reach money. and then, this is a statue that was designed and you go for frshl officials who are brought. it is now expanded to private organizations that rereserve federal funding. the government views as assistant coaches doing these kinds of alleged acts as implicates frad funding and depriving these university of funning. >> and assisted head coach at auburn university. i am going to ask you for a second here. if they are found guilty of these charges? >> is this jail time >> i mean it is absolutely jail
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time the potential and again, it is consecutive if you add everything up. it is potential of 80 years or 200 years. it is a harsh place and a place where defensive attorney like me would not prepare. >> you think ncaa will sanctions these programs even if they cannot improve the programs are involved but the coaches are doing on their hone? >> that's certainly up to ncaa i have to imagine we are seeing the tip of the eye berg. to hear soon some damaging facts about how ncaa resources and university resources and of course, the most important resources players and high school players specifically may have been abused >> danny, a real pressure, thank you for laying it out. one of the financial backers, melissa, was an under cover fbi
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ancient. >> we was the one putting up some of the money. they have him under wiretapped and cover story. big story of equifax, the kate snow ceo. >> great to have you us. >> last time it was september 14th which marks so far at the bottom of the stock. >> some animals think that nick stepping downright nowand get ahead to the testimony that he was supposed to give to congress next week. >> is equifax doing enough at this point during your view? >> well, i think they are doing everything they can and trying to take some of the potential volume out of this and the testimony, i still think they're goung to be subject to some business practice changes and
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some of their wilhelmssensors a results are quantifying right now. they are doing what they can and still have a pr nightmare. and still need to do a better job of helping consumers who who's -- the company i understand by the border side needed to do that. >> why do you stick with a by rating there is so many things that we don't know including whether or not the business model or experience is going to be changed? >> fundamentally to this is consumers who have been wide leviulated and after americans out there are outraged right now. we don't have a say as to who has our data we fundamentally, this is a business model that sparks public outrage therefore, we think makes a
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company falls directly in the cross hairs of congress. >> i think that's intuitive response >> we acknowledged and publishe and reflected views that something will change in business the end of the day, the reason we stay constructive is these datas are so important if swong were to restrict their use, you would have -- it will be harder for them to manage risk >> consumers should be out ranled but at the end of the day they are more outraged so the u.s. economy. if you follow that line of logic, you can see how giks despite seeing a bad actor coming out of this business 3409 l intact >> we recommend trans union as
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well >> thank you for calling hin >> shares are up by 17% but down by 30% from july highs it is tomorrow starting a company, today we are taking a look at one company turning from baby business >> especially on short notice. >> hi. helpers is bringing in help. >> we have a lot of screams. we call that continuity of care. it was launched early 2016 by katy upward. the university of california where they launched their first care business. >> today, they plan to expand in
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to chicago and new york this year >> it begins at 34 miles per hour helpers 360 also going through extensive vetting. >> we interview a process that includes a person interview. we call karen's karen, who ever they have worked in the past and we checked our certification and social media media review as well as a background check >> they're working with a dozen companies including snacks as a benefit to employees >> we are not saying paid maternity leave and we are trying to push into this space up and supporting those working conditions >> we are back here in beautiful la for cbnbc. >> we have a line of entrepreneurs as unusual tune in all day tomorrow on
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cnbc >> kate, awesome stuff and seeing where you are, i hope you have a few minutes to walk on. >> if i had, i would advise you to do that >> awesome for all reporting >> shares are up 9% of the past two months today's earning reports reversing the down trend what about the impact of this investigation alleging adidas' executive. will nike he helpful or hurt >> 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 papercut. and having their arm trapped in a vending machine.
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sorry, 'scuse me! oh, he looks so much more real on tv. yeah... over 75 years of savings and service. get your rate quote today. nike reporting after the bell today. what is the lynch pinch for tonight's earnings is it north america and what are you expecting here >> hi melissa, thank you for having me. north korea, the pressure point of the model and we have seen a significant low doslow down in business recently. and given the market share losses as top as it is >> all right, john, i know you
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did not plan to talking about this but you have seen this incident allegedly of adidas' executive. james gato is involved in this does it impact thinkinganythingt share? >> absolutely not. we think they can do close to te twelve euros by 2020 they can sustain in mid-20s and those earnings going over $300 our top picks are concerning because of those individuals we think of shareholders and it remains one of our top picks despite today's controversial. >> if nike comes in a week, does that mean bad news for finish line and foot locker what are the extrapolations?
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>> sure. >> nike.com is directed consumer business and is much stronger than wholesale business. we think it will continue this quarter. international is the strong part of the business for the have to expectations for the the second quarter versus street expectations i think gross margin pressure will be evidenevident, directly related to the wholesale channel, finish line, foot locker, obviously a lot of promotions, discounts, a lot of competition. taefsh know everybody knows mall traffic is weak foot locker, finish line, dick's, those stocks all reflect that, they all trade less than four times given the structural issues around that channel. >> all right john, good to speak. you, thank you >> thank you in the meantime, tesla shares down 7% in just one week. worst performance in two years just a temporary road bump or maybe something more significant? we'll talk tesla in "trading nation" next my dell small business advisor
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nation." today let us trade tesla, trying to snap a five-streak losing session. dennis with harvest volatility management, chad with washington crossing advisers. dennis, what do you make of tesla's recent slide it's the biggest losing streak in two years for the company >> yeah. the one thing about tesla is it's caught up in this rotation we're seeing out of growth/te growth/tech/growth into energy and industrials. this is an opportunity where people talk about computers out there, if you want to pick up tesla shares because they're selling it, it's good. you have to decide, are you investing in a car company or are you investing in an energy company that's going to change the grid as we know it i mean, based on either one of those decisions, as an investor, justify or cannot justify the p/e on the stock. >> yeah. and let's talk about that as well, because, chad, listen, as a fund manager, i know that your
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style is tending to go more toward the value type companies. this is super growth super momo do you own tesla >> no, we don't own tesla. we would be somewhat cautious. if you hold it, we couldn't sell it you have to have a viewpoint that goes out 5, 10, 20 years and like your guest just said, you're looking at the infrastructure buildout. this is certainly not being priced as a car company. we believe that over the next. 10, 20 years, that the ev infrastructure will be quite robust, and you'll start to see gas be eliminated by these electric cars hence the reason why we have a long-term viewpoint, but the short term, this valuation doesn't make sense. $55 billion market cap you have $10 billion of revenues expectations of revenue growth is roughly about 80% you're looking 2018 at roughly about 18 times -- $18 billion revenue line but, again, be somewhat cautious, i would buy this on a substantial pullback.
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>> not enough yet, though. okay, chad, we are watching. thank you very much, dennis, thank you. for more "trading nation" go to tradingnation.cnbc.com. and "check please" is next and now the latest from tradingnation.cnbc.com and a word from our sponsor. >> low volatility is generally associated with rising markets that doesn't mean that all of your holdings will i crease or increase by the same amount. calm marpgt markets can be a g to make sure your portfolio allocation is in line with long-term goals. if you're overly concentrated in a specific stock or sector, it may be a good time to consider taking some profits on your winners.
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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.
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when you have the right financial advisor, life can be brilliant. ameriprise check please >> and i start off with equifax, think it's shameful the company says the ceo is retiring call it what it is it's also shameful he will also walk away with and $18 million pension. he gives up his bonus but keep in mind, remember that outbreak by the publicly traded home builder ceo? >> yep, yep. >> 25% of his bonus was cut for that rant. and this guy loses his bonus for one year because of this a massive data breach. >> they don't seem to match up. >> that seems like a slap on the wrist. all right. mine is on the ncaa basketball scandal. we've had a lot going on today had time to read through both the complaints even if you don't care about sports, big schools, big money,
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underwire wiretaps fbi had moles. this is going to rock college sports adidas may have answering to do. it's a big company that's involved et even though it's only one guy. lot of evidence in these fbi -- >> thank you for watching "power lunch. >> "law and order" -- excuse me, "closing bell" starts right now. yes, welcome to this episode of "the closing bell," everybody, i'm kelly evans at the new york stock exchange. >> i'm wilfred frost in for bill griffeth no vote this week on the graham/cassidy health care bill, instead they're going to move on to tax reform. we got all the details. plus colorado governor john hickenlooper will join us with his plans to stabilize obamacare. also breaking today is the major college basketball bribery scandal brian just mentioned involving coaches and an executive at

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