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tv   Power Lunch  CNBC  May 22, 2019 2:00pm-3:00pm EDT

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american tech companies. >> appreciate it, steve. at least we have the constitution >> thank you >> that does it for "the exchange". i'll join "power lunch" which begins now >> thank you seconds away from breaking news from the fed out of washington d.c taking a quick check on the markets. dow down a quarter of a percent or 69 points s&p 500 down by 6. let's get to steve liesman with the fed minutes. >> thank you the minutes of the main meeting say a is appropriate for some time the first time they've put a time period on the idea of a patient approach they say a patient approach to rates even if global, economic, and financial conditions continue to improve. there was expressed growing concern about low inflation. some view the downside risk of inflation has having increased several members of the committee said they are concerned if inflation doesn't rise in coming quarters that there was a risk
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that inflation expectations could be anchored below 2 %. that's a concern for the federal reserve. that suggests after a certain time if inflation does not come back in coming quarters, they might consider rate cuts the minutes don't say that a few on the committee worry there's more slack in the economy than the data might suggest. that said, the minutes say that most on the committee see inflation near 2% target a strong labor market and continued expanse as the most likely outcome the recent run of low infederation was attributed mostly to transitory affects it's worth noting that a few on the committee also see rate hikes, that's a few on the committee, rate hikes if the economy comes in as they expect. they worry inflationary pressures could grow quickly a number also marked up their gdp forecast because of the
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strong first quarter some said because of the winning fiscal stimulus and prior rate hikes growth would slow. that was the general view on the committee compared to last year. there were signs of stabilization in the housing market and remember, this was before the recent round of tariffs put in place so the concerns from earlier in the year about global growth, tighter financial conditions, they has eased quickly, the fed is discussing two options for its multitrillion dollar balance sheet. one would have mostly short term securities the other would have kind of a tenor that's similar to the amount of treasuries outstanding. and that's where they seem to be agreeing upon. >> all right steve, thank you stay right there >> we'll have you stay with us as we bring in lindsey bell, investment strategist with cfra, and steve. welcome to both of you i'm going to ask maybe a sophomore in high school kind of
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question, lindsey, why should we worry about low inflation? i thought that would be a good thing. >> the problem is it means maybe the fed hiked rates too fast and that's holding down inflation. the problem with that is that means that the fed has room potentially with interest rates so low that maybe they need to make a cut that's what the market is pricing in is an interest rate cut is coming. >> why on its face, tom, would low inflation be a bad thing in other words, maybe lindsey is right and they raised interest rates and dampened inflation too much why is low, low inflation not a good thing >> yeah. i mean, i think most people think of low inflation as a dynamic where, japan, where there's a lack of aggregate demand that's why it's a dirty word there's another way that we need to think about this. and this goes to the heart of why the phillip's curve actually
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really doesn't work at all and that is one of the key reasons why we have such low inflation is actually mostly because we import boat loads of disinflation think about the phillip's curve. it's literally trying to tell you based on a singular domestic variable the unemployment rate, why inflation is doing what it's doing. that doesn't make sense. over the last 30 years we've become a more open economy today than any other time in our history. as a result, it's hard for us to generate underlying inflation. that's been a problem for the united states for multiple decades at this point. >> you don't think this notion of inflation being transient -- stay, and how does it fit in with how the fed should approach rate cuts >> one of the things we agree with powell on is if you look at headline inflation has done. not core inflation underlying inflation, ie, core, hasn't done much
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it's been relatively stable, but redline inflation has slowed one of the key things, we like to look at it in terms of the volatile components of inflation and the volatile components have done nothing but fall. so powell is right what's happening recently is some transitory factors that wind up shaking out. >> steve, pick up on the thoughts that lindsey and tom mentioned there but let's come back to the words that you found so sort of portensuos. >> the fed doesn't want to be at zero one is too close to zero that's why it picks two. that's why it makes the fed uncomfortable. it doesn't want to be at zero. it's that simple there's no science or research behind it.
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>> pause we get close to -- >> right exactly. deflation is unchartered territory. there's no science or research behind it. >> because deflation, because you get close to want to -- >> right exactly. >> deflation is sort of unchartered territory to use the cliche it may be hard tore get out of, see japan. >> exactly >> somewhere in that zone there, the fed is looking for inflation to pick back up in that time period so they expect to be patient for some time. and they add here that they're going to be patient even if the global economy were to improve and financial conditions were to improve. they're not going to hike in that context whether or not they -- >> ich'm >> whether or not they cut, i want to know what tom and lindsey think about this inflation has a short leash. it has to perform better to the up side or it will warrant som
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response if my read is correct and i want to go back to the words that they said there which is that several said that if it doesn't improve, i'm trying to find this language here that i had. a risk of inflation is becoming below 2% i think that's going to warrant a response from the fed and inflation has a short leash here of a couple quarters where if it doesn't come back the fed will have to revisit policies >> and revisit policies means what >> well, i think the fed -- they said they're going to be patient for some time. i think at cfra we've expected them to stay pat all yearlong. meaning no increase and no decrease it seems like one thing steve said in the minutes was that several of the fed chairmen thought inflation was going to increase that was more saying under 2%. >> that was a few. >> a few
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>> i'm sorry to do this, but you have to watch the words as you know carefully several means more than a few, and a few means more than some there's a whole triage in there, or a whole hierarchy of numbers. several said they're concerned if inflation doesn't rise in coming quarters there was a risk inflation is anchored below 2 %. >> inflation, the fed's pefred measure has been below 2% for some time. if you look at q 1 of last year, 1.7 core pce that's this year, and people are talking about the deceleration down to 1.6 in march and that really has been the concern. it seems like to your point, that this inflationary trend is going to be transitory and we can see it improve. especially when you think about wages increasing labor costs. transportation costs things like that, and if tariffs continue to rise, that's also
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going to play a factor >> lindsey, tom, thank you steve, thank you as well let's get to the nyse tracking the action and reaction to the minutes >> kelly stocks moving slightly lower upon the release of minutes. you look at the s&p 500. down just about 6 points on the day at 28.58 worth looking at some of the interest rate sensitive sectors starting with real estate and the real estate investment trust. basically flat on the day. some of them are trading to the downside the real estate investment trust stocks are up about 17%. so far this year it is the fourth best performing sector home builders, look at the sector there up about 27% this year not a lot of movement. down 1.2 % worth noting quite the outperformance in a number of these sectors for the year >> seema, thank you.
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to rick santelli with bond market reaction to the fed minutes. >> there wasn't a lot of reaction traders were talking about one thing in particular. pursuant to your discussion, inflation. well, one of the reasons we don't have inflation is because our dollar has been so strong. we are importing it from all those export economies playing around with their currencies but as for today's meeting specifically, the minutes, look at one week of two-year. the curve has been flattening. note on the chart we are looking at higher lows every day came close today but still holding yesterday's lows now let's go to the long end and the minutes didn't change this the long end tens and 30s have traded under yesterday's lows. they broke the pattern to some extent if you look at the yield curve over the last three days we're trading under 17 we're over 20. i know it's subtle, and it isn't about how flat it is it's the fact that traders and the fed don't want to see it get
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much flatter if it holds, that's okay finally the aforementioned dollar index look at this chart rock solid it isn't going higher but it isn't going lower. >> rick. thank you. and to washington we go. president trump walking out of oh meeting with house speaker nancy pelosi and chuck schumer saying he will not do an infrastructure bill while democrats continue to investigate him. eamon javers joins us live as i read this, this began when the speaker said that mr. trump was engaging in a coverup, and that did not sit well with him as one might expect it wouldn't. >> yeah. that's right officials here say that once nancy pelosi said that up on capitol hill, that's when they decided that this meeting was effectively not going to happen. the president was going to walk in, tell them how he felt, and walk out and that is apparently what he did. the whole thing lasted less than seven minutes. i got a text from a senior administration official that provides important clarity here
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on what the president is threatening to do here and not threatening to do. because there was some question after the president said this that you can't legislate and investigate at the same time was he saying he was not going to work with the democrats on any legislation at all this senior administration official just texting me sale -- ceiling is a must pass that's important they've got this debt ceiling negotiation that's been ongoing in an effort to get to a two-year budget deal they say those negotiations that involved democrats will continue despite the president saying he doesn't want to participate in legislation with democrats on capitol hill here's what the president has been tweeting over the past couple minutes take a look at some of his comments he's been saying the economy is great. and taking credit for that for his administration and he's saying that the democrats are frustrated they want a do over. you can't investigate and legislate simultaneously
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you can't go down two tracks at the same time. let all of them finish playing their games. the president here continuing with that language about not being able to legislate and investigate at the same time but ultimately the senior administration official telling me that those debt ceiling negotiations will continue the question is what is the president actually walking away from here? and on that point, the official is silent as are other aids at the white house. they're not saying what it is the president won't engage with. they're saying he will engage on the debt ceiling negotiations. >> thank you meanwhile steven mnuchin speaking about the trade war with china and speaking with major u.s. retailers about the impact of tariffs. we have the details. >> reporter: one of the questions i asked the treasury secretary was when he would be headed back to beijing to continue the trade talks with china. he said there is nothing on the schedule yet we know in the meantime he's
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been getting an ear full from retailers about the impact of the tariffs on prices and their consumers. he told law clerks he has spoken with the cfo of walmart about what that could mean for items like baby products and whether the retailer could possibly source those from other countries. this all coming as the administration is weighing whether to remove certain products from their tariff list. as for the overall tone of the trade negotiations, here's how the treasury secretary describes it >> unfortunately china is taking a big step backwards sometimes you go backwards before forwards. i'm hopeful we can get back to the table. the two presidents will most likely see each other at the end of june. i can tell you the president is focussed on farmers. the idea is not to have tariffs. the idea is for them to treat our companies fairly >> the mnuchin said he has spoken with all the major companies that provide goods
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the next step here is for them to finalize the list of tariffs that would be in any new round of trade tensions. that decision would likely come within the next 30 or 45 days. >> thank you coming up, qualcomm shares thinking on a major anti-trust ruling what could it mean for a settlement deal with apple welo's, nordstrom and urban outfitters are all lower what do they need to do to stand out in this changing environment? that and more coming up. and you should be mad at simple things that are unnecessarily complicated. but you're not mad, because you're trading with e*trade, which isn't complicated. their app makes trading quick
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be the first to discover the secrets. at the fandango early access showing may 25th. welcome back >> three million shares or nearly that amount in that traded following reports the u.s. is considering putting several chinese video surveillance firms including hick vision on a blacklist that move would limit hick vision's ability to buy technology from u.s. suppliers including ambarella and others they design camera chips for hick vision video systems. it accounted for 10% of
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ambarella's income the company was once the primary chip supplier for go pro cameras. it's releasing the stock rally this year after dropping 40% in 2018 >> dom, thank you. qualcomm shares on pace for their worst day in two and a half years after a judge ruled the company broke anti-trust laws by illegally charging companies high prices to license its technology the stock is still up nicely for the year where does it go from here and what does this mean for their settlement with apple? joining us now to dig deeper into the headlines, analyst at mazuoho. thank you for phoning in we appreciate it >> thanks. >> the settlement that qualcomm inked with apple was weeks ago is it possible it gets opened up again? >> yeah. i think given the just cause, all of that call kwom should engage in fair trade practices
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and probably change the royalty more to a percent. it's a big change for qualcomm, and that's why we're seeing the stock react negatively today we are not sure if the existing agreements and they're fairly recent, especially with qualcomm's agreements with apple and samsung and the china, if those can be now changed so that's still something that is -- we have not -- are not very clear on that at this point, it feels like that would be a big change for qualcomm >> meaning their business model would be put into question at this point >> i think cathe judge obviousl wants it to be a more fair practice might even take the royalty rates as a percent of the chip
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itself so that's a big change for qualcomm from how they have operated in the past >> how do you expect qualcomm to react? is there any wiggle room obviously they can move from the circuit court up through the appellate process to the supreme court eventually but quite often they reach some sort of settlement with the ftc or work out something with the judge. >> yeah. in the past we have seen anti-trust rulings really go the route of in terms of being a monetary fund. in this case given the 5g has been given the platform of national security and being the national security interest, they might have some wiggle room, especially the administration has made 5g a big priority that gives them room there but they should be able to go to the nondistrict court. if they don't get anywhere with that, the next step is the supreme court based on how the
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nondistrict court ruling goes. but given the priority with 5g, that's the court's ruling they should share technology with chip makers. they kind of challenge each other. >> what kind of multiple should qualcomm have if the appeal process is not successful and qualcomm can no longer charge as a percentage of asps >> i think a big portion of the eps earnings comes from the royalty side and that's been what has propriety and technology edge that's given them a premium market boost if they lose that, then you could see multiple compression, social cam pair -- especially compared to some of the bigger chip makers. >> all right thank you so much. >> thanks. coming up three hot stories
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to nibble on a brand new power lunch tasting menu is next plus sentiment on tesla getting bearish. more alynasts turning negative on that stock. the trading nation team will weigh in
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here's a taste of some of the other interesting stories we're watching for you today san francisco has the lowest percentage of children in any major u.s. city according to "the washington post" they make up about 12.5% there the city has almost as many dogs as kids. san francisco is no longer affordable for families. all right. in 14 states, 15 % of the population is collecting retirement benefits. in 2009 zero states had 15% collecting benefits. according to april numbers $85 billion are paid out to 63 million retired people the data highlights a growing concern the system is paying out more than it takes in. and last on the tasting menu, diamond sales fell 25% from a year ago to $415 million the disappointing numbers
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underlie an industry wide oversupply issue the jegems are too expensive for indian manufacturers who cut and polish the ziediamonds that forced debeers to cut prices >> not enough kids in san francisco? that sounds like it will solve itself the young people will -- >> will become magically fertile. >> they are in that age. a lot of them are probably millennials. are they all moving to other cities this is the case a lot of people will say it's unsustainable to try to raise a family there >> that's true >> are they going elsewhere? is it just the city center is an odd mix of those who haven't left to do that or are the ones there stuck and feeling like hey, we want to have those families but we can't? either way -- >> no full house or fuller house. >> that article was damming
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about san francisco. it was a skreet about how awful a place it's become. this was one of 25 different stats she threw in there >> all righty. >> now time for trading nation and mike >> melissa, thank you very much. tesla slammed again today as the bears pile on that name saying it could drop to as low as $36 a share. this is after morgan stanley put out the worst case scenario of $10 a share yesterday. tes will down over 40% for the year is there any relief in site? bill and john are your trading nation team today. bill, this selloff has become pretty sloppy and disorderly it's kind of broken through what used to be some areas of support near the bottom of the range how would you observe it right now, and then prepare to act if you're not ready to act right now? >> well, there is going to be a value buy at some point. right now you're getting a
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flush. this typically happens when there's bearish calls on the street let this thing flush the adx which shows what the trend is doing is trending strongly lower right now and it's showing this thing has some legs now. let it do it i'm looking at going to a trend line back in november of 2013. this comes in at about $180. the rsi right now right around 20 again, let this thing flush out. let this rsi get really low and let the adx get down to 180. at that point you can either buy calls with maybe 30 or 60 days of time or the underlying stock. look for a value buy and a short term trading opportunity >> all right john, do you see value in here anywhere within that price range, this general area of where it's trading? >> no. as a value manager, i don't see value in the company yet the valuations are too high. you have a company burning through cash flow. they have balance sheet issues and a wild card of a ceo and
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board members not seeking reelection you're finally -- the shine is coming off the car that's what you're seeing in the stock right now. and it's still unattractive for my taste >> all right well, it's -- all those were true $100 higher in the stock. we'll have to see. it's sort of the eye of the beholder type of situation we'll see how it goes from here. thank you john and bill. for more trading nation follow us on twitter at trading nation. ahead on power lunch, retail evolved. more retailers are betting on services like delivery and clothing reing lenltss. will it pay off? today's mystery chart. the stock is one of the top picks on wall street we'll tell you what tds. and hollywood's $9 billion boycott. and now the latest from trading nation and a word from our
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hello, everyone. here's your cnbc news update the president of the federal reserve bank of st. louis is urging china to reestablish credibility of trade he says china should agree to everything being asked in negotiations with the u.s. because it would lead to a domestic economic boon >> the chinese should reestablish credibility for trade protections within the chinese economy, and that will reassure global investors that china is a great place to invest and to have access to chinese markets and really good things will probably happen for the chinese economy going forward. >> a double decker bus carrying
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6 0 tourists overturned on a highway in italy's tuscany region the cost of the accident is not immediately known. cleanup is underway after severe weather moved through parts of central missouri. multiple tornadoes were reported in the region. three people who were stranded in flooded cars were finally rescued by first responders. they have had such a string of b bad weather. back to you. thank you very much, sue the oil market closing for the day. let's go to dom at the commodity desk >> oil prices lower today. west texas intermediate off by 2 .5 % $61.48 brent crude futures off. wti prices shows the big downside catalyst the crude inventory report it grew by 4 .7 barrels last week analysts were looking for a draw
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of 495,000 barrels the headlines between the u.s. and china and the price drops today, even gasoline stockpiles grew by 3.7 million barrels versus a drop. it's maryland of the hol -- this is ahead of the holiday weekend. energy the worst performing sector in the s&p 500 today by a wide margin. >> dom, are you losing your voice? >> i am losing my voice. i'm going to go get tea. >> be careful. thank you. it's a tale of two retailers. lowe's shares slammed. target is up 9% on the back of strong digital sales as the company sets its sights on amazon and walmart urban outfitters is getting into renting clothes where the shares are down 9%. nuuly will charge customers $88 a month to rent six items. let's dig deeper into the model
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with christine running castle, a clothing rental web platform for retailers. welcome. you partner with a ton of folks. you work with ann taylor, american eagle, express and a lot of memberships $50 to $70 a month. what do you think of their offering? >> i think it's going to build a ton of category awareness that rental is a great way to complement traditional ownership. their move into trying to build the infrastructure themselves signals a strong belief that rental is here to stay >> why are they doing this themselves if you exist, why not partner with someone like you who takes care of the back end apparently they bought a dry cleaner to do this >> it's an intense capital invest the cfo said expect operating expenses to go up by 2 full percent. we certainly believe in our retail partners believe the most capital efficient and best in class way to do this is to
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partner with somebody where this is all they do urban is clearly signaling they believe it's strategic to their business they need to also own the infrastructure >> what you do is take care of all the back end stuff all of the operations for the company? >> yes >> -- >> yes we take care of the logistics. obviously and the returns processing and cleaning. beyond that, and i think this is smag lot of people miss at the surface level. the amount of technical investment that goes into running a service like this efficiency so it can drop 25% margin to the operating line either you have it in your dna to build out the algorithms needed or you don't. >> are the margins in clothing rental higher than clothing sales and how many times typically does one rerent the same garment >> the margins are higher in rental than retail >> because you're effectively
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collecting revenue multiple times? >> yes but you're also for the retail partners that we work with, it's also because they've already built up a lot of brand equity in their brands. for who we work with q they've built consumer awareness around their brands already they already manufacture the clothing to sell and so it's really taking advantage of these two core assets that the brands already have, brand equity and clothing and doing something different with them that allows you to achieve that high of a margin. on a stand alone, i don't believe the margins would be that high. >> you mentioned 25% operating margins to the bottom line is that what you say you can help a retailer do >> yes that is probably our number one selling characteristic we walk into the ceos and cfos of the retailers and say with no capital invest m if you compare to urban, zero capital dollars up front we only make money when you make money, we're going to get you up
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and running in ten weeks incredible speed to market and to the rental space. it will drop 25% to your bottom line >> i'm always famous for two-part questions the second question either isn't answered or asked. zblim happy to answer. >> how many times does the same dress or top get rented typically? >> it completely depends on fabrication. your high-end synthetic fibers, will last two or three years in that amount of time can be turning 36 to 45 times your high end silks and shrub cottons burn out faster. >> where do they go then >> we encourage our partners to donate there are a lot of people entering into the work force that need a cost efficient way, partner with dress for success and donate the clothing once it's pulled out of rental rotation >> it's fascinating. i was joking all the companies
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should get a tech multiple if they're offering clothing as a service. maybe that's you >> i think that is us, yes >> thank you very much >> thank you coming up we'll talk to a top investor in the unicorn about what's hot in home renovation and ask about the rough rides for operated ipos like uber and lyft [ grunting ]
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it's snowtime baby. [ screaming ] oh, it's just this weird little guy. ow! ow, ow, ow! ow, ow, ow! [ screaming ] not cool. uber, lyft, slack, pinterest, it's turning into the year of ipo, and they are gathering in las vegas to talk about the next hot ideas coming down the pipeline. zeb pipeline is one of them. it was recently valued at 4 billion and came in at number 43 in our disrupter 50 list joining us is the first external
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board member of how's. thank y -- houzz. >> thank you glad to be here. >> i have to admit, i'm a houzz addict but i'm wondering when you take a look at the company like a houzz and it initially starts and obviously there are a lot of great things about it. how do you think about that path of profitability which seems to be more in the forefront with the latest round of ipos these days >> i apologize could you repeat the question? i couldn't hear you. >> sure. when you first start an app like a houzz where you see the investment, and you think what a great idea it makes total sense people love to renovate their homes and want to see pictures how do you think about the path to profitability that's so much what investors these days right now in this moment in the ipo market are looking for. >> so did you ask me about
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the -- i'm really sorry. what profit did you ask me about? >> the path -- you know what i think we're having difficulty with the audio we're going to try to reconnect and take a quick break and be back with the houzz investors. stay tuned imums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees. no trade minimums. and yes, it's all at one low price. td ameritrade. ♪
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back with us the first external board member of houzz we're going to give it another try. i was asking you about houzz because it is an app that is dearly loved by so many of us out here, and how you see houzz making money and how you see houzz increasing that profitability in the future. >> sure. thank you for the question houzz makes money in two ways. one is from the professionals. we provide them a host of services and we bring them business people discover the professionals through their experiment with houzz. and then also consumers can also buy things directly from houzz, and it's the other way that we make money both ways are inherently
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profitab profitable they're not necessarily profitable today, but both ways, houzz is the market leader, and as long as houzz continues to give both sides what they want, consumers great great access to professionals, design ideas, inspiration, and professionals business and other services, then we'll be able to -- we're going to be able to make a lot of money. >> i'm curious as to how you take a look at potential investments today given we've seen some shaky ipos from uber as well as lift. and investors are now focused not just on the growth side of the story but on the path to profitability side of the story. are you looking at things through different lenses >> right so the uber and lyft ipo didn't change anything for me because it didn't change my views of
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these companies, for good or for bad. i think as far as houzz is concerned, when we go public, it's going to be based on profitable or very close to profitability. it's not going to be one of these companies that is in the process -- is based on a promise, but without profitability in sight now the way i generally look at opportunities is i try to look for great markets that -- big markets that are still incredibly inefficient and backwards. and home design was one, you know, eight, nine years ago when i -- houzz corporation i see it in freight. i'm the only investor in uber freight, other than uber, and all these markets are operating
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as if the internet and suddenly mobile and suddenly ai has not been invented yet. and incredibly inefficient they have an interest to keep these markets operating in the traditional way because that's how they make money. and they have been holding the for fort, but they can only hold the fort -- they can only hold the fort for a while but eventually they're not going to be holding -- and already we're seeing signs they're not going to be able to hold the fort any longer and technology companies are going to be able to take over >> thanks for bear with the technical difficulties oren zeev. let's talk about beer. guggenheim has named anheuser-busch its best idea in the beverage area. now up about 25% this year as you see there on that chart. let's bring in the analyst behind the call. he's a senior aichbnalyst with
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guggenheim i thought bud light and bud were both kind of flat or declining what is ambev doing right? >> so actually, we had -- on monday with the company and it was really interesting i think what makes us feel more comfortable about the u.s. is, first, they are moving from defensive to offensive i think they are doing this at the right time and, three, the plan we saw is very -- so let me come back on those three things so from defensive to offensive, as you just mentioned, bud light, budweiser is declining, the segment of the market declining. the past two years, abi has been trained to protect their brands and to the added expense of growth in other segments i think it's a very strong, strategic move here. the desire to invest more
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behind -- growing categories but also more profitable, like super premium. so that's one. the second thing is the right time to do it, and i think what we should be comfortable with is it's been growing fast, about 15% to 20% the last few years, it's a light beer that's now offsetting fully the decline of bud light. so -- and it's sort of a premium. so here it seems like they've got a very solid base to start from and then the last point, very rock solid innovation pipeline, especially on premiumization we're launching super premium. reinventing the strategy for craft beer being more local rather than national, and they show us some example of this or even expanding further to even more premium trends. >> so if i telescope it, it's a
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premium pay is what this company is right now how about a very quick thought where are they strongest regionally is it the u.s., latin america, elsewhere? >> right now it's the -- it's latin america. clearly the cash machine of the company is latin america brazil now the u.s. is 25% of revenue, of ebitda, so it's a key market. it's -- what's interesting, what i would like to add, you heard about an ipo coming of their asian business the company is also trying to rebalance the business across the world. so here i don't believe this ipo is to refinance the debt it's really more to go after some acquisitions. and actually, we saw the cfo of abi show us the list of the markets in the world and where they don't do business or they're not number one
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china, japan and vietnam were really highlighted so this ipo is to fit the gaps >> laurent, we appreciate your time today up next -- the business impact of new abortion laws across the country stay with us ♪ (vo) i know what you're thinking. electric, it's not for you. and, you're probably right. electric just doesn't have enough range. it will never survive the winter. charging stations? good luck finding one of those. so, maybe an electric car isn't for you after all. or, is it? ♪
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...or trips to mars. $4.95. delivery drones or the latest phones. $4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade. business and politics colliding as georgia's abortion law threatens to hurt its television and movie production
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businesses julia boorstin is in los angeles with a look at this brewing battle >> hi, tyler that's right georgia's new law banning abortion after a heart beat is detected sparking boycotts in hollywood that could put georgia's massive production business at risk the state is up to 30% state tax credits drew over $4.5 billion in wages and $9.5 billion economic impact, according to the georgia governors office the recent projects include disney's "black panther" and "infinity inquiry wa itity war" dead." now stars and producers say they won't work in the state with the new law. a new movie canceled shoots set to start in georgia. alyssa milano, ben stiller and ron howard among those pledging to boycott productions in georgia. now it is complicated, though. the motion picture association of america representing the studios as well as some other
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filmmakers, argue that taking work from the locals does not effectively fight the state's laws and just hurts workers. jordan peele and j.j. abrams pledging to donate their fees from production in georgia to fight that bill in court and now a california lawmaker is trying to use georgia's controversial law in order to help lure production back to california introducing a bill to offer tax breaks to productions that relocate from states with's strictive abortion bans. >> thank you, julia. thanks for watching. "closing bell" right now >> good afternoon. welcome to the "closing bell." i'm wilfred frost. >> i'm sara eisen. we'll tell you everything you need to know before the market closes >> here are the major indices with 59 1/2 minutes left of trade. down 0.2% on the dow s&p down 0.1%. nasdaq down


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