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tv   Power Lunch  CNBC  May 17, 2019 2:00pm-3:00pm EDT

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and i think unclear how it plays out. >> thank you both. appreciate it. james, chuck that does it for "the exchange." i'll join bill and courtney in a moment for "power lunch" which begins right now. >> thank you, kelly and we'll see you in a moment. i'm bill griffeth. courtney will join us coming up. a fluid situation right now. we'll get to that coming up here investors brushing asidie negative news about trade talks with china and positive headlines coming out of dc but are investors being too optimistic now, if you're wondering what to do with your money in all this volatility, watch ultra wealthy. they are moving to cash levels, not seen in years. but there are five stocks that they love right now. we'll name some names and amazon is going after uber in the delivery area making a massive investment what it means for uber and everybody else "power lunch" starts right now
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>> welcome to "power lunch." i'm courtney reagan. wild swings on wall street the dow was down more than 200 points at its lows and then swung more than 280 point it is other way to go positive we are off the highs but holding on to small gains. but the nasdaq is turning negative once again. this is a very fluid situation hey, kelly. >> courtney, thanks. the trade focus shifting from china to mexico today and canada, the u.s. set to remove steel and aluminum tariffs today and the president expected to speak this hour. kayla tausche is breaking these headlines for you. kayla? >> reporter: kelly, we just received the joint statement between the u.s. and canada on the removal of the tariffs expected to happen within the next two days. in response, canada will remove its retaliation against the u.s. which has been in place for close to a year. they will drop all lawsuits at the world trade organization over the tariffs and open a new
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cons consultative process if they realize it's becoming a bigger issue in the future, the u.s. has the right to put new tariffs in place this is a significant cease-fire between the u.s. and canada, which have been trying to figure out how to move the usmca forward in the respective legislatures in the countries. we're not only expecting remarks from president trump momentarily where he's expected to address this issue we're also expecting remarks from canada's prime minister justin trudeau that will take place, flanked by steel workers at a steel plant in ontario. the same location, we might add, where canada announced retaliation in late june of last year we'll stay tuned to those remarks and let you know what we learn but this is a significant development on the tariff front. >> indeed, kayla, stay there unless a source gets back to you but let's bring eamon javers into this conversation as well i wonder about the timing of this, eamon? >> in the short-term, we expect the president will address this
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at the top of his remarks. he's speaking to the realtors here in washington, dc we thought this was going to be the president talking about the economy but now i believe he will begin his remarks about steel and aluminum and the timing, fascinating question because of the politics of all of this. at the same time, the president is able to pull these tariffs off and make it more likely that we get usmca deal finalized internationally and worrying about the domestic politics with democrats on board with the usmca here in washington and this move today might give the sense to democrats on capitol hill that there's real momentum here and ultimately, this is something they should be on board with because it's going to be good for the economy and too disruptive if they don't move forward with it. focus on just one front, on his
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negotiations the brush fire breaking out on every front, if you can possibly avoid that. >> kayla, if he does get this deal done, the usmca, in some way does it strengthen his hand with negotiations in china one done and maybe can get another one? >> it would certainly be a symbolic win if nothing else, the top u.s. trade official ambassador lighthizer has said to congress that the u.s. cannot pass usmca, everything will be a footnote. the top priority and if they can get this passed, it would signal to the rest of the world that the trump administration's trade strategy can be successful and that they can get some of these deals across the finish line so that is currently what they are trying to do the finish line is in sight. canada's parliament adjourns on june 12th so there's an expectation that canada has pledged to move the usmca as quickly as possible to give congress momentum to then take it up, potentially even before
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the august recess. the real sticking point here had been republicans senator chuck grassley, one of the most influential republicans on trade, told the president, he wouldn't even put it to his committee for a vote if the steel and aluminum tariffs were in there and a lot of republicans were beseeching the president to remove these tariffs and this is going to be a win for them as well today >> kayla, thanks let's dissect what the latest headlines mean for the markets now. eamon, appreciate it as well cnbc contributor peter bookar and ron insana to schroeder's senior adviser the lifting of the tariffs has what immediate impact do you think on the economy >> i don't really think that much it will have some, of course, the administration was sort of forced into removing them to get this thing passed. in terms of visible, it helps, but the tariffs itself, the
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implementation of it never really helped the u.s. steel industry but a chart of u.s. steel. on this part of the world, we can at least clear that up >> not just that but will delay the european auto tariffs or a decision for a few more months even though there's not a lot of progress with china? >> i would imagine so. not out of the woods with whether they impose more tariffs on china early as next week. 10% on the $325 billion worth of goods. i'm not sure what strategic objective has been reached with the tariffs, canadian and mexican steel and aluminum i don't know how much different of a position we're in today, but it does show the president and advisers are only willing to fight a one-front war. some lessons from napoleon or a two or three front war would not be great of an idea and harmful to the economy as we approach more and more election talk. >> bigger picture though
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peter, steel makes it maybe more likely that he gets passage of the usmca. what impact does that have on our economy, do you think? >> i don't think that much of a difference than nafta. we updated it a little bit, but the, to me, it was more of a tweak rather than anything of a substantial difference than the prior agreement. >> we picked up half a percent in canada at the end of the day and we included, obviously, upgrades for intellectual property and other issues were not included in the original deal we've talked about this, had we joined a transpacific partnership, we would have isolated china economically and automatically upgraded nafta since canada and mexico were signatory to the tpp and not have gone through a lot of what we've gone through the last three months or so. >> a lot of fluctuations in the market, in reaction to what we're hearing both from china and what's going on here ron, if you're looking to your investors and you're giving them
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advice, what are you telling them we start the day negative. we go positive, or it's the reverse the next ay. is it even smart to get in >> first of all, most of the people, whether i talk to or deal with or encounter in any way, shape or form whether family, friends or professionals, you don't trade, right? unless you're a professional trader, you don't do this kind of swing trading style stuff on a daily basis unless you know what you're doing with adequate capital. at the end of the day, still upgrading quality in your portfolio. whether it's debt, whether it's equities you want to stay with relatively, immune companies, if you will to these kind of cyclical swings not just in the economy but the market overall. >> now if the president by drooping thedroo dropping these tariffs get democrats on board, approve this, move forward, it just seems like the issues with china loom largest but you get the sense they're shrugging it off, priced in now. every day, a new announcement
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about someone. it was stanley black and decker moving production from the u.s. to mexico from china and ironically, the best news mexico got this week, even more so than lifting steel tariffs. >> the question of whether it's priced in, off stock market that's near record highs and you look at the continued meltdown in global bond yields and the spanish 10 year yield closing out a record low today. >> how low is it now >> minus 11 basis points 28 buy sasis points with french. so when you see that kind of meltdown, the bond market's really concerned here about global growth. the u.s. 10 year below 240 stock market still holding out hope we're going to get a trade deal with china and excited that the fed is not going to be raising rates anymore. >> surprise surprise, the glass is half empty with the bond market. >> kelly, you and i have argued about this in the past
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china is a net seller of u.s. treasury i'm not going for the nuclear option but can simultaneously sell and devalue currency. we've seen it happen last night, yuan came close to touching the external version of the currency and if a weapon they use in the short-term, it's going to be if the president go point for point on devaluation. >> understood. >> overnight, we were watching that closely guys, thanks great stuff. we appreciate it put me on the spot next time peter and ron insana. get to bob pisani at the new york stock exchange with more on this wild day of trading hi there, bob. >> good news on the trade. you've heard there and going away with the steel and
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aluminum not getting much of a boost at all and the trade related names this week, a real mess not moving that much obviously, china is the big deal waiting to be done but deere was another one. about 10% of revenues in china cut and the market smelled this a long while ago and if you put them up for the month, you'll see all down double digits because the market could smell this back to you. >> thanks very much. bob pisani. up next, what does sheryl
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sandberg think about calls to break up facebook? a bite of uber's most profitable business, and bitcoin with a big dip earlier toy.da is that a dip or done? "power lunch" with that and more stay with us igher standard. they are called "cfa charterholders." demand the best. demand a cfa charterholder. cfa institute. let's hold ourselves to the highest standards of ethics.
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by going to vo: if you have search results that are wrong or unfair, call reputation defender at 1-877-492-6705. to the ipo of the day, shares of china's luckin coffee soaring on its debut leslie picker with a closinger o at what's bringing investors
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into the good luck stock. >> good one, courtney. there was an investor demand up sizing the number of american depositary shares. luckin coffee's premise is simple turn a country of a billion people who primarily drink tea into coffee a fish nah dficianas 2300 stores but they overlooked in favor of the quick scaleability luckin lost $241 million in 2018, about double net revenue of $125 million. concerns outweighed by momentum and opened at 47% above its ipo price, although the stock has come down a bit since then you can see up about 24% now guys >> what's the hurry? this company is less than two years old.
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the anti-uber. uber waited years. >> they recently raised a lot of money from black rock. so it's not like it wasn't available to them but there are certain benefits to the public market, especially if you need to kind of going back and tapping that financing and it's easy for investors to understand there's no kind of situation like uber where you have to get the business up to the point in which you can tell a story to investors and argue it still wasn't as successful as they possibly wanted it to be, but with luckin, it's a little bit different. clearly raise a ton of money for more >> lots of issues facing the company. we're lucky to have you here tell us the highlights.
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>> the big issue of all of these calls to break up facebook sheryl sandberg telling me though she doesn't think that's the solution >> while people are concerned with the size of the tech companies, there's a concern about the size and power of chinese tech companies and that, you know, realization that those companies are not broken up. so the question for us, how to protect privacy and make sure we work with authorities to safeguard elections and make sure that the right content is on facebook and the right framework in place >> i thought it was really interesting that sandberg there tried to shift the conversation away from regulatory risk to competition from china she also spoke to the inevitability. >> the answer to set up the right rules for the internet
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you could break us up or other tech companies up but you actually don't address the underlying issues people are concerned about. election security, content, privacy and data portability and so we know at facebook, we have a real responsibility to do better and earn back people's tru trust. >> it will target users. i asked how much it will cost facebook's bottom line. >> our bottom line is getting this right and we are making real changes that have impact. our growth rate is lower we are spending huge amounts of money, billions of dollars and we are taking on real things but it's the right thing to do >> i asked sandberg about the recent hack of what's app, actually being used to hack into
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users phones she wouldn't say this would never happen again but as they do their best to protect against it, might hear about more of these things because facebook will be transparent. guys >> she wants to set up the right rulers for the internet. who does she want to >> they're certainly working with the government on this and she was working with a number of folks in congress. >> the only thing that doesn't happen that typically does, a company with this much turmoil and scrutiny, nobody had to leave the company and solve the problems that they've overseen all this time. >> we have seen a huge amount of turnover in terms of the people running the different divisions. the people who run what's app and instagram and he's been a
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part of a lot of decisions about how the service is made and how facebook looks and works, he did leave the company. it's unclear exactly what went into that but people say he could have been a big part of the decision making with how facebook was really. >> the only scapegoat? >> i'm surprised she didn't say, i'm good here for the highlights, the good lights. >> does work >> thank you, julia. so shares of deere getting clobbered today in part of the impact of the trade war with china, the stock down 12% this week does it make now the time to buy or more trade pain on the horizon? also, trade war jitters. eiat are the wealthy doing with thr money right now?
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might be interesting coming up on "power lunch. stay tuned ent's need. is the fund built to sell or built to last? etfs are only part of a portfolio. so make it easy to explain. give me a quality fund that helps me get clients closer to their goals. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence. before investing, consider the fund's investment objectives, risks, charges and expenses. go to for a prospectus containing this information. read it carefully. still nervous about buying uh-oh, la new house.meone's is it that obvious? yes it is. you know, maybe you'd worry less if you got geico to help with your homeowners insurance. i didn't know geico could helps with homeowners insurance. yep, they've been doing it for years. what are you doing? big steve? thanks, man. there he is. get to know geico and see how much you could save on homeowners and renters insurance.
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that industrial stock getting crushed as trade war concerns weigh on market. the shares now down nearly 20% in their 52 week highs craig johnson of piper jaffray and bk asset management are your "trading nation" team. craig, obviously, the results from deere pretty much confirm the market's conclusion before this that the company was going to have a rough go of it looking all washed out, how's the set-up >> not yet if you look at this and under on a basis but next area of support around 128 and a little bit of a relief at that point in time and i suspect it's sold and then really have to watch out not going to step up here at this point in time
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>> the market priced in the stock and not particularly expensive at this point even if they come down and would you make the contrarian play >> i would probably down to 110 and 115 and let the price come to me. and we don't know how the china story plays out. deere has a tremendous franchise in agriculture and one of the things they're doing right now that's interesting is trying to go into a subscription model where they're going to be selling a lot of data to help farmers actually increase their yields so if they change away from just a pure product company to subscription, that's bullish long-term. but for right now, just too much negativity in the stock. really want to step up and buy here much rather selling and get myself into a better price position down the road
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>> you have to imagine, if there was any whisper of hopeful news. but we have to see how it will play out for more "trading nation," follow us on twitter back to you. >> thank you, mike ahead on "power lunch," trade tensions cause volatility in stocks this week. how are the wealthiest protecting their money we'll ask. food delivery and it could be bad news for uber. we'll explain that and this company using ai to disrupt the credit industry. the ceo of cabbage joins us live when this continues. >> the latest from and a word from our sponsor. >> some people say buying holds investing is dead but nothing wrong with that strategy as long as you don't buy and forget about it make sure your port folio isn't
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over n'foeto bancdot rg trelae every six to 12 months to remain your target allocation.
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hello, everybody i'm sue herera here's your cnbc news update at
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this hour. 236-17 3 vote, approved sweeping anti-discrimination legislation to extend to lgbt people the protections would be employment, housing, loan application, and public accommodations. >> 50 years after the lgbtq americans took to the streets outside of the stone wall inn to fight against harassment and hate, we take pride in the progress we have forged together we today pass the equality act and finally fully end discrimination against lgbtq americans. >> missouri's republican-led house approved a ban on abortions at eight weeks of pregnancy. and gop governor mike parsons is expected to sign it. the proposed ban allows exceptions in medical emergencies, not in cases of rain rape or incest
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winning author of the wins of war has died. died in his sleep in palm springs, california. he was just 10 days shy of his 104th birthday you are up to date that's the news this hour. back to you. >> sue, thank you very much. president trump has been speaking at the national association of realtors trade expo in washington here's something he said about trade moments ago. >> tariffs or major tariffs. as you know, canada has been for years, and we have a great relationship with canada and the prime minister, but they've been charging us extremely high tariffs, as much as 285% or more for our agricultural products,
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which is an absolute barrier essentially a barrier. in other words, 285, guess what? you know what they're saying we don't want your business. so it was a barrier to our farmers able to do business with them to our farmers being able to sell product in there. so that deal is going to be a fantastic deal for our country, and hopefully, congress will approve the usmca quickly and the great farmers and manufacturers in steel plants will make our economy even more successful than it already is. which it is possible we could have the greatest economy in the history of our country. we could have, you look at the unemployment numbers, the best since 1969 and in a very short period, it will be something we go a little bit further, the best in history. the unemployment numbers are
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great, but the employment numbers are even better. we have the most people working today than at any time in the history of our country almost 160 million people working. and many of those people will go out and buy a house. right, tracy use you as a broker. tell trey circumstancactracy, bi won't pay you 6%, tracy. i'll pay you 1%. i was famous for that. >> we want to bring in eamon javers here. so there it is the confirmation of what we've been hearing on the deal, at least with canada on these removal of these tariffs >> reporter: bill, that's right. you hear the president talking about this he's talking about manufacturers, about steel workers, about farmers, and that is a big portion of the trump constituency that's who he says is going to win as a result of this deal and putting itin the context of
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broader economic achievement in the united states. the president framing this as a big win for the united states, a win for canada, saying ultimately, it will be good for farmers as well and then as we talked about, he's putting some pressure on congress now to pass usmca. so he's saying to congress, look, i'm moving this deal forward. it's up to you guys to sign off on it or be blocking economic growth with a lot of political persuasiveness. >> kayla tausche also with us covering capitol hill. more likely we get passage aft usmca with these tariffs as you point out, people like chuck and others saying you've got to get rid of these before we consider this bill. >> nearly every gop senator who's a supporter of free trade extremely critical of the administration and made multiple trips to the white house to ask them to remove these tariffs, otherwise not be voting on this
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deal so definitely remove the thorn from the side on this deal and now the question is democrats. you had the top u.s. trade official ambassador lighthizer meeting with house speaker nancy pelosi earlier this week to try to figure out what the path forward on this deal is. democrats have been critical of some of the labor and environmental porkss of this deal despite the fact that mexico passed a new labor law to try to get u.s. democrats on board. it's still unclear what exactly speaker pelosi's price will be to put this deal on the floor and have her members vote on president trump's signature trade deal at this point >> all right kayla tausche, eamon javers, thank you on this significant development today as the president continues speaking at the real estate conference in washington moving on, the wealthiest investors out there increasing their cash holdings in this recent market volatility and the concerns about trade with china, but they are still finding some
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opportunities and the investment club for the ultra wealthy they have over 700 members and manage assets of more than $70 billion. >> our members manage. but i've always wanted to ask. how do they make the decision on the asset allocations? >> each member manages their own asset a l locations but a large part comes out of the monthly meetings >> we aggregate the data >> added to cash here. why? >> first of all, 10% and 12% today. so still 20% increase. the biggest reason, they've taken a lot of chips in real estate off the stable and down from 33% to 26% of holdings and
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still largest allocation real estate but still easy pickings off the table and build cash for future opportunity. >> are they worried? >> i don't think there's a hesitance. but some markets got frothy and obviously, different markets within real estate workforce, housing is strong and those activities the gateway citis, quite strong. >> cannabis stocks, canopy and constellation. theme there? >> in cannabis, what attracts our members is this is the first new product that has a built-in $50 billion demand
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our members with private equity, public equity, real estate they own the land that growers are using and the factories and they lend money against it and they play the stocks so that's covering all of the bases, if you're interested in this new market. berkshire, on the other hand, part of a tiger delegation to the berkshire annual meeting and if the price falls, buyers of their own stock not a lot of orpgss that have the ability to put a floor on the price of their stock so you have an asymmetric benefit to the upside and that was particularly attractive. on the other hand, zoom, we're a user of zoom a global organization. one of our members able to contact with the ipo get in on
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the ground floor and yes, it was probably the most successful ipo in recent days and with black stone, 26% in private equity but they love the private equity in black stone stock. >> what's the consensus of the membership with the u.s. and china and the trade talk >> i think it's tough medicine but they've been unfair competitors. of all the things, a lot of democrats, republicans, the one thing that most members seem to agree on is this problem needs to be dealt with and that gives the administration high marks for that >> always good to see you. instructive to hear what those members are doing right now. thanks see you later. tesla tanking as elon musk starts pinching pennies and another fatal crash involving its auto pilots. explain all the news affecting that stock uber facing competition from
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a new and very powerful source "power lunch" will deliver that story coming up next [knocking]
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♪ memories. what we deliver by delivering.
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as you see, tesla down to 4% today to the lowest level in 2.5 years. two big stories affecting that stock and philip lebeau steps in with details on that >> bill, let's start off with the model 3 involved in an accident in march in florida but the ntsb looked into this crash and this was a crash in which the model 3 was engaged. as a result, this preliminary on the ptsb is important because of the technology the ntsb needs to do a full report and may come out in the end, the auto pilot function was not the cause of this crash. so we'll have to see how this plays out but we all know what's going on here. say auto pilot will be functional, completely
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functional on all of its vehicles by the end of next year and so people are saying, really is this technology ready that's why that's getting a lot of attention and when you take a look at tesla right now, a report of an email sent out by elon musk in the last couple of them and the time when the company is tightening its belt. when you look at tesla, keep in mind, the second largest and sold a hefty chunk most of it in tesla in the first quarter. more than 7 million shares 7.4 million. that's why you see the stock right now. last straight at this level. early 2017 >> a lot going on with tesla thank you for keeping us updated, phil. amazon trying to eat uber's lunch. buying a big stake in food delivery app and uber eats
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competitor lower but rebounding off of the lows ed lee i'll start with you here very interesting for amazon after they had their own that they ended up after a couple of years. are they doing this to get better insight into delivery and densely populated areas? or grocery delivery? >> i think that's exactly a part of it anyway quick delivery something they haven't been able to crack sort of figured it ow it only works in densely populated areas. turn a profit off of it and then amazon has no margins but then
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investing in over the last few years. i'm surprised it's not sooner. >> not really a big chunk of change we don't know what it is but when you look at all the cash it has, it's a small investment for maybe a big return we'll see. what does it mean for uber eats? we talked about pressure on the stock but it's other reasons as well >> just means more competition i don't think it is really any secret there's a lot of competition in the ride share business and you're going to continue to see competition in the short-term in the food delivery business as well amazon's tried to break into this space for quite a while and not that successful. interestingly, they're doing it over in the uk first but this
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will increase pricing pressure in the near term but it's the availability with more than one winner in this >> the gang around here, probably tired of hearing me say this it's not what you sell but how you sell it. what's the holy grail here amazon leads the way in delivery but when it comes to anything they're trying to put out there right now? eventually, does everybody get it in a couple of hours or what? >> they want to deliver things to you in under an hour ideally. that's the one thing they have, depending how far away it is even the two day or some case, next day delivery isn't fast enough if they can deliver it, most in under an hour. effectively kills brick and mortar part of the many end game and
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having food delivery, a part of that but in dense markets but the last mile of that delivery all sources of contractors and the performance is up and down don't really know where it's going to land. but a long way before we get there. >> i understand the success of uber eats or others like that are a big part of your knee sis. this is probably worrisome to your thesis, no? >> i think you have to distinguish between the short-term and long-term we've been expecting this, more
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and continue to believe them in the near term and results over the last couple of quarters and gone down. given more discounts giving better deals to their restaurant partners and paying drivers more over the long-term, again, $800 billion market globally. uber is positioned well in it and not just in food delivery but ride share as well off the same driver base it gives them theedge over the next three, five, ten years in uber. >> a lot to watch here thank you for being with us. >> thanks for having us. coming up, the cnbc disruptors kabbage. the ceo joins us next.
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the seventh annual cnbc disruptor 50 list has been unveiled it features the top forward-thinking private companies across every industry. number 14 on the list this year is kabbage, an a.i.-powered money lending service. the ceo, rob frohwein, joins us
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now. welcome. >> congratulations >> thank you i appreciate it. >> this is going to sound a little -- but to say an a.i.-powered lending business, some would say rob, you're just shadow banking okay you get to do the stuff that we want to do but with easier standards. tell us what the real innovation behind kabbage is. >> so what's great about kabbage is we actually have our customers connect us directly to the data that they use every day to run their business. have you ever logged in with facebook to i athird-party site? that's effectively what our customers do and they log us in effectively to all the data sources how they run their business their banking, their accounting, their web analytics -- >> i can't believe they let you have access to all that. >> it's read-only access and what we're able to do is pull down that data and give them a fully automated experience as a result >> you ask three questions and the algorithm either says yes or no to as much as a $250,000 loan for that small business. now, i can hear barney frank out there somewhere saying it
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shouldn't be that easy to get a loan because that's how we got ourselves in trouble to begin with ten years ago >> well, i think what we got ourselves in trouble with was not having the kind of data we needed, not understanding the business the beauty of data and big data, although that term is often misused and overused, is that you can actually use a lot about a very specific subject in a very short time. small business owner lands on our site and they have a decision and they actually have cash on its way within seven or eight minutes. that's how fast. think about that from a banking standpoint, traditional banking. that usually takes six or seven weeks to get to typically a no and we usually say yes to our small business partners. scl i was going to say what is the acceptance rate? >> very, very high if you're actually running a business and generating at least $5,000 a month, we typically have approval rates above 75% or 80%. >> and what's the default rate this has come up lately. the consumer credit card data in the first quarter showed some of the higher default rates especially for young people 18 to 29 in seven years there's some questions about that at a macro level.
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but how are your own default rates? >> our rates are great they're in the mid single digits between 5% and 6%. and in fact that's come down tremendously over the last few years. now we're growing 50% year over year on a pretty big number and we're actually seeing the performance improve of our customers. now, that's a combination of a strong economy, a combination of just great small businesses and just really our data chops working and really understanding the data that we brought on over the years. and our customers not only give us access to that data at the moment they qualify but we stay connected to that data so we understand how that business is performing not just at that time but all points thereafter >> are you making any money? >> we are. i think we're -- >> profitable? >> yes, we are cash flow positive >> valuation here it says over a billion dollars. is an ipo coming >> billion-dollar question or more than a billion-dollar question you know, i think we have to figure out the right time to do that the beauty of the business we've been able to build the investor representation we have is we have the freedom to
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make the decision at the right time right now we're really focused on serving our customers in a much broader way so we've been providing them with capital for the last several years. and now we're actually expanding our services we're offering them payment acceptance services. so moving sort of into competition with companies like square and paypal now. >> all right they are on watch. rob, thanks very much. rob frohwein, great to see you bitcoin has doubled so far in 29,01 until last night, that is we'll explain what happened. next on "power lunch." [leaf blower] you should be mad at leaf blowers. [beep] you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. but you're not mad, because you have e*trade which isn't complicated. their tools make trading quicker and simpler. so you can take on the markets with confidence.
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ability coyne falling nearly 10% today but that's still cutting earlier losses in half seema mody is here to tell us what happened. take us on this -- >> it was 20% down this morning. the main company is a major sell order placed on a european-based exchange named bit stamp investors trying to understand if it was a fat finger error or a deliberate strayed but it says it has opened an investigation into this trade. either way it's put pressure on the crypto currency exchanges and regulators to ensure that the necessary mechanisms are in place to limit extreme volatility and price fluctuations with today's losses about $121 billion has been wiped out across the crypto currency space. a sizable move and not just bitcoin but some of the other alt coins like ethereum, rip sxl light coin
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we should point out that even with today's loss just take a look at the chart. i sense a little skepticism. >> alt coin. >> i'm just doing the reporting. >> just this month bitcoin still about 40%. >> it's had a huge pop >> you're just the messenger, we know we still love you. >> thanks for watching "power lunch," everyone thanks to bill and courtney. >> thanks for having us. >> "closing bell" starts right now. all together now >> announcer: another whipsaw day on wall street >> take a look at u.s. equity futures. they are in the red, in large part because they're under pressure from what's happening in china >> dow futures as you saw down about 180 here as the index could see its fourth consecutive week lower >> major averages are now trading higher with dow up 54 points >> it's the final hour of a volatile week of trading "closing bell" starts right now. >> it does indeed. good afternoon welcome to "the closing bell." i'm wilfred frost. >> and i'm mor


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