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tv   Power Lunch  CNBC  May 10, 2019 2:00pm-3:00pm EDT

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>> absolutely. we've seen that kind of thing. parsons is a good example about the government contractor as well as we talk about this bifurcation in the market, it does come down to whether people feel comfortable with a non-disruptive business model. >> thanks, great stuff dominic chu, michael santoli see you for more in a bit. that's it for "the exchange. i'll join bill and deirdre for "power lunch" that starts right now. >> thank you, kelly. i am bill griffeth deirdre bosa is with us this hour new at 2:00, stocks bouncing back despite the u.s. slapping more tariffs on china and speak with the man until two weeks ago was the white house lead negotiator about whether a trade deal can still get done. for investors, it comes down to what it means for the market and the economy. break that down for you as well. uber trading as the public company below its ipo price. where the stock goes from here coming up. "power lunch" starts right now
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>> welcome to "power lunch." i'm deirdre bosa the dow briefly went positive moments ago but down more than 350 points earlier, all major averages on track for the worst week of the year bill mentioned uber's first day as a public company, shares slightly trading lower this hour certainly have more on that ahead but straight to bob o'brien with the nyse with what's driving this. bob, a busy day for you. >> it is uber in particular but let's just talk about the markets. why we're rallying is because the markets continue to refuse to believe that there could possibly be any kind of long-term trade war that would be damaging to both sides. absolutely refuse to believe it. look at this we're down 40 points here. mr. mnuchin comes out and says, trade talks were constructive. what does that mean? we don't know what it means but the market, 25 points on that.
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on that, and then we have the editor of the south china post coming out right here and says, hey, the good news is trade talks didn't break down. well, there's a constructive piece of commentary as well. so what does all of this mean? it just means that well, maybe the next month, maybe things will get better. what's going on? next, i felt good, the markets should go up we don't know. there are other people who are a little bit more positive constructive analysis on the markets. ubs is just out with comments today saying, look at the tariffs that they're putting in place today. and they think it's going to cost gdp 0.25% that might stay on for months on end. this is real analysis rather than let's hope there's a deal going on we don't even know about the additional tariffs the president's talking about or what the chinese will say overnight. the bottom line, let's just call it, i hate that word, a lot of hope for the markets because they have to lower the global growth forecast and economic numbers, lower earnings and
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lower multiple market trades that no one wants to do that right now because we're only 3% for the historic highs and also, questions about retail stocks today. all very weak. i think we saw cpi, really weak print and retail, clothing prices way below expectations. a lot of these big names of clothing to the downside back to you. >> thank you very much, bob. now to trade talks treasury secretary mnuchin's comments helping to soothe investor fears after the u.s. went ahead with its threat of more in china. kayla tausche with the latest. hi, kayla. >> reporter: hi, kelly we're trying to parse exactly what that comment from the treasury secretary meant and exactly what they conveyed the global times that is a state affiliated newspaper in china and the editor tweeting this
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saying, i learned from authoritative source that china trade talks did not break down both sides think the talks are constructive and will continue consultations. the two sides agree to meet again in beijing in the future so that is the editor of this state affiliated global times in china. now it's unclear where the president stands on this he said yesterday he would be speaking with president xi jinping and unclear whether that call happened last night but the tariffs did get raised at midnight we expect to hear from the president later today at an event at 4:15 where he's honoring military mothers with the first lady he is tweeting this afternoon but about the disaster relief bill and nothing, again, so far on trade since the tweet storm from earlier this morning. guys >> kayla, thanks very much president trump was also on a tweet storm today about those talks. he said there's absolutely no need to rush saying tariffs are now paid for the united states by china everyone's already shaking their head 25% and $250 billion worth of
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goods. these go directly to the treasury it's not exactly the way it works. dig deeper into this and discuss the latest round of tariffs and retaliation by china and what that could mean for the u.s. and global economy aluaalexis crow at price water s coopers and steve liesman is here as well we've talked, steve, about who actually pays these tariffs. we know it's the importers, not the chinese. here's my question though. we talked to jane last hour about the workarounds, people move the stuff to vietnam or at least ship it around is there a way that china ultimately pays even if they're not the ones who are directly paying >> if they lose the business they pay, they can reduce their profit margins they can pay that way. ultimately, somebody's paying. you don't create money, well, i guess you can if you're a large central bank, perhaps or the government, you can create money out of thin air, i correct myself on that, but in general, one does not create money out of thin air so these are being paid and in
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general, the belief that what they call the incidence. >> the president has got that 90% wrong probably >> it goes back, $15 billion worth of tariffs the 10% put in place last september. maybe not a huge disruption. does the 25% hike now seems like it's sticking change the game? >> 25%, if you think in terms of numbers, almost tripling what currently exists and seeing a lot of profit warnings from dow 50 companies saying they're very concerned about the outlook, passing on the cost to consumers and the other impact beyond the consumers thinking about capital expenditure in the future if we're torching the global economy. how are businesses going to feel confident about investing in their company? >> what's the fed going to do with this, steve i mean, short-term, assuming these go into effect, because we've still got a few weeks before these go into effect of some kind.
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this could be inflationary, right? >> we don't really have a paradigm for this. go back to the 1930s to see how a large and massive tariff regime being implemented affected the economy it wasn't good back then i don't know this is quite as large. you can imagine there's an inflationary impulse we talked about yesterday. it's a one-time price level. it could create an inflationary mindset and expectations i think what's interesting here, what we're kind of trying to figure out is who does this fall the worst on china or the u.s.? and i have a chart that raises some questions this chart is in percentages it would not look this way in dollar value but let me show you what it says what it shows is that u.s. exports to china since the tariffs were put in place have fallen more than u.s., sorry, than the white line there is u.s. exports to china. the orange line is u.s. kbosimp
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of good from china what's interesting about this, you ask yourself, who's got the better substitution of product let's say this chart is telling us that we can't replace chinese products as easily as china can replace u.s. products. that would tell us or suggest to us that we have more to lose on a percentage basis if not the chinese have more to lose on the dollar basis, but you see there, it's a flat line so far, even though they've rachtcheted up prices. >> talk about the global effect of this, alexis. because it's not just the u.s. and chinese economy. these are the two world largest economies. how does it affect other places that will ultimately come back and hurt the u.s. economy? >> we've heard from the french finance minister today that this is the single greatest threat to the global economy so if you think about germany, france, italy, the uk, eu's largest export is to china, we now have the european commissions forecast for germany, 0.5%.
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italy in recession this is gravely harming sentiment across the board capital expenditure for european countries and countries across the board, taking a nosedive in the last 13 months even looking across to the asia pacific region often having the added in product where japan and korea send the inputs to china and then go to the united states and we've seen stark warnings for companies in these regions. >> one more quick point here, which is the long-term and the potential effect on productivity if we raise prices here in the states and protect our manufacturers, we force them to get more productive and efficient while we grow sort of fat, happy and stupid. and the extreme example of that is the soviet union which was a closed economy we're not that we're more internally
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competitive than they ever were but an external competition point of view, we reduce our competitiveness. we talked about at the beginning, kelly, we force them to look for savings and to look for margin >> this was all on the rebound guys, thanks alexis crow, thank you very much the markets bouncing back despite new tariffs going into effect the s&p, i know, but it was in front of me before turning positive this hour down 1.5% earlier and the major averages still on pace for the worst week of the year is there more pain ahead and how should you position your portfolio? katie nixon is the chief investment officer with northern trust management and as you heard, ron insana joining so far, senior analyst here at cnbc >> fat, dumb and happy >> no, i would never go there. katie, how do we read the market's response to this?
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are they looking beyond what's going on today and just anticipating that we're not, that we will get a trade deal eventually, just not right now >> what we just heard in the prior conversation is there's a lot to lose on both sides here and i think investors have come around to believing it won't happen that there won't be an acceleration in this tariff trade war and that there will be a resolution, although i do think that right now, we're understanding that it's going to take some time. >> i don't know. i think this can go either way it's almost a coin toss to me. the president could really dig in at some juncture and says, he hasn't really articulated this in a way to sway business groups with the american people with their tweets, often conflicting and confusing but if we were to say, which is what steve bannon that china poses an existential, economic and military threat to the united states over time, and we have to take serious steps to counter this, so pain in the short run will result in a better u.s. economy in the long run. that's one way to articulate it.
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instead, we're doing this back and forth keeping people on edge. >> i wonder, does the markets know it's page pong aa ping-pon. it's been a wild week but we've been seeing this for about a year now as these trade talks have been ongoing. so is it still affecting the markets in the same way it has how do you sort of put this week in perspective of the last year or so? >> a couple of things i think happened this week and we may end up disagreeing a little bit about this, in particular, one area, the fact the chinese boycotted the 10 year treasury option and did not buy there the first or second treasury bonds but have some tools at their disposal, as they promise to retaliate, the u.s. treasury options and devalue their currency >> devalue the currency, they have to buy it >> i get the mechanics they could do one or the other if they want to mess with the u.s. a little bit. they've tried devaluing their currency in the first round of
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tariff increases and that could karissa so create some serious disruptions. >> what their tools are. whether that becomes a long-term strategy is a whole other story. >> their imports are a fraction of what we export from china so their main tools are the currency channel and the treasury channel and i do think they want to avoid shooting themselves in the foot to the point made earlier, if they sell a lot of treasuries, that's going to be increasing the value of their currency, exactly what they don't want right now. devaluing the currency is really interesting but that would actually benefit the u.s. in terms of softening the blow from the tariffs. so i do think that there's enough of a mutual interest here to come to an agreement but it's a very important for both sides to show strength for the obvious reasons and i think that's what's happening right now but for investors, they're really looking through this and really looking at the fact that it's all happening, thankfully, at a time when the backdrop is
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pretty strong. so we're able to absorb all this noise and then we can wait for the actual news. >> the one thing to keep an eye on, the geopolitical risk around the world. north korea, iran, libya, venezuela, those are all fallen to the back burner and b-52 bombers in the middle east right now. it doesn't seem like a minor development. >> ordinarily, that would be front and center not right now. thank you both for joining us. coming up, the other big market story today uber's first day as a public company. the stock trading below its ipo price. where it goes from here. and we are continuing to watch yet another huge market turnaround ine dow was down more than 350 pots at its low but now it's just flat. "power lunch" will be right back who says our bank isn't tech enough? everyone, look at your phones. the design thinking, the digital engineering, security, blockchain, and we will be first to market!
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let's get a check on shares of uber right now down about 3%. the stock opened, priced at 45 it opened at 42 and now around 43.5 more on the ipo, leslie picker >> reporter: even as the overall markets moving higher, uber stock prices flirting with the $44 per share levels $45 last night with the lower end of the range and marketing and struggling with investors sentiment all morning long and started to see some upward momentum over the last hour.
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most measures, this is a disappointing debut for uber the company was looking to raise as much as $9 billion and got about a billion dollars less than that. that number doesn't include the $500 million that paypal put in as part of a private placement at the offering price but that means that along with the investors who got allocation in the deal last night, paypal is also under water on its investment however, that stock not really moving on this news today guys >> leslie, thank you very much let's bring in our andrew ron s sorpin, who still had hope in his heart, andrew. >> ah, good to see you i did speak with the ceo of uber and one of the questions i wanted to ask him is how he would define success with the ipo. this is what he had to say >> success today is a stable price, a little bit higher than
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the pricing, not a lot higher than the pricing we want there to be a fair price that the company received, but we're going to be measuring success in three, five, ten years. >> clearly, he hasn't got that bump that he wanted. i don't think necessarily a 20 or 30 or 40% bump the way zoom had would have been successful either having said that, you look at where the stock is right now and there are still questions. question in the market right now. whether morgan stanley, the lead underwriter and the others in there, stabilizing the stock or whether this is a natural act, if you will. if morgan stanley and others are in there, i think that's probably a bit more of a cause for concern than if it's floating where it is simply because the investor sentiment we try to make sense of what it says about the future of the ipo market silicon valley unicorn that's coming i have to tell you, i've had a
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lot of conversations about this today. and i'm not sure you can take too much away from what's happening right now when it comes to the airbnbs and slack and others and then the cloud of lyft and whether you would have been better off going first, second i think that's going to be something that case studies and academics will be thinking about for a very long time. >> andrew, i think you're right on that and we'll see very soon because we're already looking ahead to slack's investor day on monday and we'll see how nvrs lo investors look at that i know you asked dara what happens when slack says they may see peak losses this year, and wasn't able to say uber would stop losing money at the pace it has. right? >> absolutely. lyft came out and said this was peak loss here
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he didn't want to put a guarantee on that and investors clearly want to see some sense that there is a light at the end of the tunnel and right now, it's unclear when and if that light is coming. and i think that's the big question with both of these companies, by the way, which is there's nothing else out there that's comparable. as much as you'll hear uber say they're like an amazon, and by the way, amazon to a large degree had this situation. unclear what it even looked like and it was called aws in the form of the cloud but nobody would have known that at the time of the ipo. i think that's what everybody is trying to wrestle with here. >> they've got all the moon shoot shot shots to find that aws perhaps like aws, andrew, thank you. great sinterview with dara. where does the stock go? especially so paul meeks from the wireless fund and university florida finance professor and jay ritter, let me go to you first as we look at this day and sort
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of what happened, demand ahead of the ipo and it's very, very rare that you see an ipo this anticipated and this size, particularly since the financial crisis trade like this on the first day. is this a product of what we're seeing in the markets right now or because it's a reflection of the whole ride sharing industry? >> i think it's partly the ride sharing industry that people have had a lot of concerns and growing concerns about, as was just said, when will uber become profitable certainly, the decline in the stock market and the decline in lyft's price didn't help the shares either. >> paul, what do you think when you hear uber or lyft talking about potentially peak losses? is there even enough information to know that i mean, they are engaged in a fierce competition in north korea -- north america do you have a time line of when they might become profitable or
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how they might get there >> the key with these companies is not the ride sharing business at all but what they do with the moon shot investments and do they end up supplementing their core business with autonomous vehicles and maybe they have a chance to become profitable. but the ride sharing business in and of itself, i don't care if they say losses will peak this year or not. i don't know if this is a business that's short, intermediate or even long-term is potentially viable. >> yes jay, you've done some studies on how ipos perform when they've had the kind of day that uber's had right now. what are you expecting down the road here? >> on average, ipo that starts trading flat or down in the first day have been slight disappointments over the next six months now, halftime average. the average return has only been 1.1% from the close at the first
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day to six months later. but the obvious exception and that doesn't tell us anything about the long run facebook did very poorly and then went on a tear. >> what would you pay for uber >> i think that uber and lyft should be valued at no more than six times sales calculated on a trailing 10 month basis. both of those stocks, to get me interested and this would even be a stretch, would have to each drop $10 per share from here. >> what do you think the divergence is between how the private market saw this company and really looked at the total addressable market which uber and lyft try to pitch investors now but the public marks don't seem to buy it what are they missing that may might have valued so highly? >> a couple of negatives since the recent private valuations. in particular, uber was doing
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great in brazil and then diddy decided to move to brazil and start a price war. that's one of the things that concerned investors in terms of the losses in the short run. but the short run losses aren't all that important >> i don't know if we lost jay there. paul, we'll just give you the last word because i thought you said something pretty provocative. both uber and lyft would have to drop $10 a share to get you interested. >> not getting any goodwill premium anywhere >> no. i say frankly at six times sales trailing 10 months, that might even be a stretch so the way i look at this, you have a private company. there is no urgency to buy any company in this industry today let's see how it pans out. watch and maybe nibble $10 lower on these stocks but it would be
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a small position in a portfolio. >> gentlemen, thank you. paul ritter -- excuse me, jay ritter and paul meeks. first, get you updated on some stockmangigs ki b moves in today's session. "power lunch" is back right after this (indistinguishable muttering) that was awful. why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum- just to help you improve your skills. boom! mad skills. education to take your trading to the next level. only with td ameritrade. i can't tell you anything about myself. as someone in witness protection, but believe me, i'm not your average consumer. that's why i switched to liberty mutual.
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i'm courtney reagan and here's your cnbc news update at this hour. two french soldiers were killed in a military operation in the west african nation of b brakinofaso. they were kidnapped in neighboring baneen praised the heroic acts of the two soldiers. syrian rebel groups fighting back wagering a counter-offensive. the stronghold in the country's northwest. the latest wave of fighting is the most serious challenge to a cease-fire brokered by russia and turkey last september. thousands across iran staged rallies in support of the country's nuclear deal ultimatum. many chanting death to america and death to israel.
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earlier this week, iran threatened to renew some nuclear enrichment halted under the 2015 nuclear deal back home, amc movie theaters will soon offer reserved seating movie goers can book their seats online or the box office this is according to business insider. reserved seating will be able by memorial day that's the cnbc news update at this hour. deirdre, back over to you. >> thank you, courtney 90 minutes until the closing bell what a wild day of trading the averages stating a major comeback dow and s&p 500 turning this hour dow was down more than 350 points earlier all three averages though, still on track for their worst week of the year >> deirdre, thanks let's check on other stocks moving in today's session. marriott shares are falling because of weakness in a key measure of available room or rev par as they call it. the slowdown blamed in china and brexit for the drop in those shares resorts lower as revenues come
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in shy the high rollers pulled back in the latest quarter that's a 5% drop and yelp also disappointing on first quarter revenue. analysts unhappy with the outlook as well. b riley downgraded to neutral from buy and down 15% on yelp. still ahead on "power lunch," the latest on trade talks between the u.s. and china. we'll also hear from a former lead trade negotiator for the white house. plus -- why higher tariffs could spell doom for retail earnings and keeping an eye on these agg ets, we've got stocks stinthat big comeback for the lows of the day. all this when "power lunch" returns.
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secretary mnuchin's comments about the latest trade talks have eased investor fears at least this afternoon after the u.s. slapped more tariffs on china overnight. kayla tausche is outside the trade representative office in washington with the very special guest right now. kayla? >> reporter: we're joined by cleet willams. in many of these meetings at the
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white house. thank you. >> thank you for having me. >> reporter: a couple of hours ago, only six hours of talks in total. it seemed cordial but how do you interpret the way these talks ended today? >> i think it's great the two sides are still talking to each other. obviously, this week started out with the trade deal but liu he came to washington and still negotiations and i think that's a good thing the reality is that there have been difficulties before and both sides found a way to continue to move forward and i'm hopeful that's going to happen he here. >> it was discussed by u.s. officials as sort of a water shed moment. >> i think it was significant in the sense that it's critical to the united states that we get specific commitments from china on that.
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there has been a lot of back and forth. there's no question about that we can get to a place where there's an agreement however, it is very significant that they aren't willing to commit to specific things at this point and it's critical for the united states that they get those commitments so this deal can be enforceable in the long-term. >> the treasury secretary described talks as constructive. the chinese delegation told state media they believe the talks didn't break down. they were constructive but how constructive do you think talks really were if the chinese left town inside this building? >> it's hard for me to know exactly what happened in that room i think we're all waiting to hear more from the white house but i think the fact there was discussion and continues is a good thing >> the officials say there would
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be an outcome one way or the other. there's nothing we know of at this moment. how long do you think we could see this back and forth going on >> i think the outcome you did see. the president decided it was time to increase tariffs and time to increase leverage in these negotiations and in some ways, i would describe this is the outcome that happened. and while i was in the administration and now on the outside, i can tell you that structural change in china is important and i think what the president signaled this week is a deal that doesn't include meaningful that isn't a deal worth having many times, they should walk away and if those aren't the kind to receive. >> do you think the president has the patience to take this into a second term
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>> the reality is that there's broad bipartisan support for what the president is doing. both republicans and democrats on the hill indicate they want the administration to stay tough. and certainly an impact over the short-term but i think what the president is trying to do is to play the long game and look for a long-term benefit for the economy because ultimately, if our businesses can compete on a level playing field in china, if our businesses, that would be good for u.s. businesses. >> reporter: many businesses paying these tariffs to the u.s. and now the president wants to funnel those to farmers, largely members of his base in red states how are republicans going to, how is that going to sit with republicans?
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>> don't back down until a real deal with a lasting impact playing the long game here in the short-term, there's a need to help out the farmers i think presidents indicated he's willing to do that, but again, a long game here that ultimately is going to benefit those businesses and those consumers who may not like the short-term impact. >> it doesn't seem like a very republican idea. the president says that china is paying these does he fundamentally understand how tariffs work >> i think he does understand what he's doing and a calculated approach what he's trying to do is get a long-term solution where our businesses can compete more fairly in china. >> hopefully able to continue the conversation with you. thank you for joining us on a busy day we're going to toss it back to deirdre bosa in the studio deirdre? >> kayla, thank you very much for that and very interesting, guys you have to wonder if he keeps the bipartisan support rick santelli at the bond
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market, tracking the action at the cme. rick >> reporter: you know, everything is chicken and eggs down here in chicago today uber pricing right before noon eastern. every market that i followed down one on the day and you can see how it's deteriorating and right around the uber right. it was priced where we're starting to trade. do keep in mind, you see the spike where it started to move higher around the same time. now granted, treasury secretary mnuchin but looked to me like he gave it a push already well on its way and there's a lot of
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tweet bombs. kelly, back to you >> thank you very much president trump says china is paying for the tariffs he slapped on imported goods. those are also being passed along to you to two reilxe tl nt ta ecselusexon "power lunch." what's a target date fund? 529 plan? a 10-k? what's an etf? an ipo? 401(k)? where do i start? empower yourself with the free tools and resources on before you invest, on feel that? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that,
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many businesses uncertain what will come next. retail is one sector that could be especially hard hit by these increases. estimates that more tariffs would wipe out retail stocks and s&p down nearly 4% this week amid all the trade turmoil with us right now to give us a deeper dive into this, two gentlemen who certainly know their way around the retail industry former walmart usa bill simon is with us and former toys r us ceo, hudson based. good to see you both
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it depends, i guess, which companies and how large they are, whether they will be affected by this one retail analyst told me this week that a company like walmart or a target or a costco, they're not going to be bothered that much it's the smaller guys with the more concentrated supply chain >> smaller retailers focused on sourcing from china. and with a narrow supply chain in the short run very limited options and i think they'll have to deal with it. most of these retailers had pretty massive tax cuts last year so whether they're having the ability to absorb some of the impact of the tariffs and how much they'll pass through, i think that remains to be seen. >> what do you think happens where's the line drawn on who gets affected and who doesn't? >> so far, it's important to remember what's happened and
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what hasn't happened where we are now, it's just not as catastrophic as some are making it out to be. for example, luxury retailers like neiman marcus, most of the product comes from europe any way. totally unaffected by this other retailers, it depends on where the product comes from and the ability to pass along price increases from the customers, which they'll certainly try to do it will even improve their profitability and leverages their fixed cost others are highly focused in specific areas an gd get the product from china where the tariffs are, all the goods from china, then you see products like toys or bicycles or china is really almost all of the world's supply and a much more problematic situation. >> how should retailers be about potential retaliation from the chinese and being able to sell
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their products over there? >> well, i think when you look at some of the big retailers, you know, walmart comes to mind. they have a pretty substantial business in china and i think some retaliation could impact them but for most retailers, the retaliatory tariffs won't have much of an impact at all >> there's a variety of means to buy american i believe you did it a lot at walmart but this actually now present american as a viable alternative or not there yet >> i think we are. we've had the manufacturing space for a while now. manufacturing index relatively strong for the last several years. nobody wants a trade war and nobody wants tariffs, but this needs to be addressed and i
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think what we're witnessing is, you know, what is normally a private negotiation done in the public markets, and the puts and takes. if you've been in any negotiation like this, there are highs and lows and peaks and valleys and eventually a deal gets done. it's just never on the front page of the newspaper or on cnbc where every little bit is discussed and by the way, you don't usually tweet about it >> jerry, if you were running a big retailer, wouldn't you have been stockpiling anyway, anticipating something like this and if that's the case, when do we hear from retailers that these tariffs are having an impact >> of course, retailers have been doing that and beyond that, retailers have been moving production out of china for a long time. especially apparel products, footwear many move regardless of what's going on in the short term with tariffs. eventually, you'll move it all away and if you have a little bit of disruption in the
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short-term, i think markets will learn to overlook that if you shift to production. remember, capitalism is really almost infinitely flexible and these companies will respond to this >> we'll leave it on that positive note. bill simon and jerry, thank you for joining us today >> see you thank you. jeff bezos wants us to go to the moon again but this time, stay there we'll give you all the details on his major blue origins announcement and plus, as we head to break, check out the markets. the dow coming back from its lows of the day. now on positive territory. "power lunch" is back in two
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jeff bezos has already conquered the retail frontier. now he's got a plan to colonize the final frontier morgan brennan joins us with more >> that was well said. jeff bezos unveiling blue moon this is a lunar lander, kelly. his space company blue origin has been developing that he says could be used to meet nasa's ambitious deadline to get americans back on the moon in five years >> i love this it's the right thing to do and for those of you doing the arithmetic at home, that's 2024.
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and we can help meet that timeline pu only because we started three years ago. it's time to go back to the moon this time to stay. >> bezos betting on a future in which earth is used for habitation light industry and space for heavy industry mining, manufacturing. he also believes at some point we self-sustained orbiting colonies so, kauld o'neil colonies but that will come later. rather he sees the task now as providing the infrastructure to make space more accessible for future entrepreneurs much like established infrastructure for deliveries, payments, telecom here enabled him to create amazon during the '90s bezos also making clear he is not interested in going to mars, rather he sees this as space for ear earth. that's unlike spacex with elon musk
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and perhaps that's why we did see some comments that prompted some twitter trolling by musk on the heels of this news late last night as well. back over to you >> morgan, i didn't come up with that line myself >> oh, come on just take credit for it. >> all gino. >> good job gino and we go to the moon instead of mars because you can guarantee one-day shipping to the moon a lot easier there >> it is much easier to move back and forth, and then you have frozen water and all kinds of other potential options there that are much closer than mars >> if there's helium there, that would help party city. >> they'd be saved. >> yes thank you, morgan. >> true. >> we just looked at how retail could be whacked by the latest tariffs. up next, why one of the most important areas of the american housing market is bracing for a double whammy. and as we head out right now, the healthy returns summit will be back in new york city for its second year may 21st do not miss it learn more and register now at
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welcome back home remodeling another area where costs are going up because of higher tariffs on chinese goods. diana olick joins us from washington with this story diana? >> yeah, it's all the things that will go into this renovation from tile to countertops, light togz laminates, all the fancy
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finishes actually 450 of them are on the list that just went from 10% tariffs to 25% tariffs >> it's probably a 7%, 8% increase, net increase to the consumer i'd love to eat that and not just pass it along but at this point i don't have a way to engineer around that, to use different products that aren't affected >> builders like case were already struggling with a labor shortage and that is also getting worse. nearly three out of four remodelers this year reported higher prices for customers due to higher costs for labor. according to a new survey from the national association of home builders and all these higher costs are causing people to rethink their remodeling projects. in fact, case said they saw last year a reduction in the size of a lot of their jobs as their customers start to reconsider their budgets. back to you guys
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>> thank you very much for that. next thursday our capital exchange returns to d.c. for its first ever real estate edition go to for more information. >> is it time for check please >> it is >> to round out this week. some big news from elle brands victoria's secret, they are no longer going to be holding that fashion show on network tv >> what? >> about 15 years they've been doing it they're not going to do it on nbc or abc this time here's what's not cool shares of lb are down 75% since late 2015. they're around $24 a share from nearly -- >> it all started when they got rid of the catalog that was the beginning of the end. >> think about how huge that is in terms of marketing. >> atleast it was. but it hasn't been working anymore. >> so who got shares in the uber ipo today? >> we haven't been able to -- we saved it especially for check please there's a lot of celebrities that are getting even richer from this ipo. jay-z, leonardo dicaprio, gwyneth paltrow, beyonce
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and beyonce's really interesting because she performed at one of the parties during the travis kalanick areas and that's something he got a lot of flak for later on >> they must be thrilled getting those shares today good job good to have you with us today that's it for frch prc"power lu" >> "closing bell" starts right now. success today is a stable price. a little bit higher than the pricing, not a lot higher than the pricing. >> will uber's ceo see what he considers a success today? anything could happen in this, the final hour of trade. welcome to "the closing bell." i'm wilfred frost. >> and i'm sara eisen. and we're sknding at the uber post biggest ipo of the year. stocks still lower a bit of a stumble out of the gate opening below its ipo price at 42 it still sits below that price right now. now it's priced at the bottom en


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