tv Power Lunch CNBC June 5, 2019 2:00pm-3:00pm EDT
an hour with you talking about his life we're goung to talk about the thought leaders in the space involving trading globally >> thank you, bob. that does it for exchange. i'll join tyler for "power lunch" next. welcome. we begin with breaking news this hour and for it we go to washington >> the federal reserve said that economic activity was modest in the spring and that's a little bit better than the preceding period almost all 12 fed districts experienced at least some growth with a few districts reporting moderate gains only one district, st. louis, said that economic activity was unchanged. nationally employment was about the same as last time. most districts reporting modest to moderate job growth the tight labor market was a constraint wage pressure and improved benefits improved across a range of occupations the fed said prices rose at a
modest pace and as for tariffs and trade, uncertainty, there are lots of interesting anecdotes out of boston and dallas boston's report calls out huawei and thefallout for semi conductor firms. it also said uncertainty over trade policy is causing the delay of some new models in the auto industry. meanwhile in dallas manufacturers retailers and the service sector all pointing to tariffs as a key concern in both pricing and demand some companies are also saying that long delays at the mexican boarder are adding to their transportation costs overall, consumer spending was generally positive real estate and loan demand all pointed toward growth. however, the fed said that the outlook for the coming months was modest but solidly positive. guys, i want to point out that the beige book was largely compiled before the recent issues with mexico thank you. let's get to our panel for some reaction to the report just out.
amanda agauti, david rosenberg, and rick santelli. rick, what did you learn that was new, if anything >> you know, i didn't really learn anything that we didn't already know with regard to slowing and moderation and tight job market maybe not improving as much. today's adp is more of what we call an averaging number you look at it, you're shocked you pair it up with last month's, divide it by two, it looks better and more in line with economists. probably rosy agrees 150,000 is what people expect in this cycle. most of the nervousness of the fed is real. the slowing is real. the key is how much we could see is from trade, is trade the catalyst for the slowing is it indirectly a big part of things to come with regard to ongoing slowness, downgrades by the imf and world bank with
regard to china and europe as a whole? today's big news in treasury specifically on this topic is the short ends trading like commodity futures. wild trade in two-year note yiel yields tens and 30s are steady and a lot less volatility on the long end. it comes from the notion that we get a weak number, the short end loves it briefly thinking it brings the fed in. equities right themselves and the long end takes the solace in stride and the rates turn firmer >> amanda, i guess the headline here is growth but a little bit slower and trade a worry. >> totally agree we think that we're entering a summer soft patch. we think the data kind of confirms and reinforces our view that the robust q 1 gdp growth is not necessarily sustainable that q 2 may be a bit softer if
not a little bit below trend that doesn't really worry us all that much. we think there's still plenty of time left on the economic cycle clock. in the short run definitely trade, tariffs and trump are kind of the overhang so we'll have to watch that closely. >> david, did the fed in its statement start to turn the big battle ship toward an eventual rate cut maybe later this year was there anything in there that was a signal of any sort >> well, look, the -- >> the language in short sounded a bit beige, to be honest with you. >> the markets were already starting to price in fed easing long before the beige book and long before this chicago fed conference and for good reason. and the answer is yes, i think the fed will start cutting interest rates sometime this summer i don't know whether that's the july meeting or september. one of those two i think they're probably not going to stop because even if we get the soft landing, the fed doesn't just cut rates once.
they usually go two or three times and then we have to entertain the notion that the economy is slipping into recession. right now the first quarter gdp was a bit of a hoax. underlying private demand was close to 1%. now it's converging. my sense is even if we don't go into recession it's going to put downward pressure on inflation which poses another problem for the fed. my sense is rates will go down quite a bit more over 6 or 12 months>> not everybody is as dismissive of the growth we've seen the last couple quarters, but even if you say there's been a slowing, would you say it's because of the fed's tightening last year? did they do too much >> i would say that that's a big part of it there's no question that the tariffs and the spreading trade war is obviously an impediment the comment before about hitting a supply weld on labor, that
might have been the story in the adp number we got today, but there's no question about that either but i've been saying all along that you're not going to go through a cycle where the fed de facto tightened policy with rates, nine hikes and the balance sheet to the tune of 360 basis points of tightening in the last couple years and that influences the economy with lags between 12 and 36 months we're just starting to see that. that's why it's not just a trade story. the regional backs were in correction mode. we had a lot of domestic sectors, the small caps which have nothing to do with global trade back in correction mode. a lot of domestic demand sectors telling you the same story that the treasury market has been telling you the past several months which is that growth is cooling off and going to remain that way for some time yet as these -- >> but david, isn't it also a demand story, david? david, isn't it also a demand story? someone saying yesterday everybody jumps to conclusions
because bond markets are perceived as the smartest in the room standing next to equities that the dropping yield cause anxiety, but look agent the globe a lot of anxiety ends up as purchases in longer maturities even though domestic investors are camping out on the short end. >> david >> well, my point is that the bond market is telling you something very significant about the shape of the global economy, period and you don't just have to go to the long end go to the front end of the yield curve and look and where where two year notes were trading relative to funds at a huge discount the market is telling you the fed overtightened. they have to walk back a good part of the rate hikes they put into the system. i don't know see why -- >> maybe they're telling us the rest of the world overeased. >> well, how can you say the
rest of the world overeased when core inflation is .8 % you only know if you overeased -- >> right, and they're exporting as much as their deflation >> if the economy overheats. the economies there did not overheat i think the fed is the only central bank that pushed the envelope >> they can't -- negative rates. i think the problem is overseas. >> they probably have a lot of structural problems. their banking problem is in disarray, but focus on the u.s. for a second in the united states the fed raised rates nine times. the united states, de facto tightening was 360 basis points. there's not a payback with a lag from that? we're living in that realtime and it's going to continue into next year. these are just the lags between monetary policy and the eventual policy on the domestic policy. >> turn back to e lan with a final thought on trade and recap some of the statement with
respect to that. >> i think the fascinating thing about the beige book is it's the way the real economy informs fed decision making. i was surprised trade wasn't a bigger factor. you saw a lot of firms reporting they were able to absorb some of the cost increases from the tariffs that had already been in place. prices were fairly muted so you're not seeing the big inflation scare from tariffs yet. but the picture could turn i feel like the message you got from the beige book were firms were doing a delicate balancing act and with the new round of tariffs on the potential horizon, that could perhaps tip the scale to the other end and force the fed's hand >> all right thank you. e lawn, amanda, david and rick thank you. the stock market was at session highs before the beige book hit let's get reaction on the floor of the nyse. >> we extended the gains where
we've learned that china tariffs and a tighter labor market are the biggest worries. we largely knew the risks coming into today's beige book. nonetheless, interesting to hear the dow up 187 points. we built on the gains. we're at session highs s&p 500 above 2800 which is a key level to hold onto take a look at the sector check. really defensive in nature which is interesting when looking at this rebound yesterday and even today. utilities and real estate continuing to lead us higher and some big names in tech making a rebound. apple leading the dow higher and look at the retailers. when you talk about the impact of tariffs on prices and also consumers, by and large we've heard from a number of companies telling us tariffs will likely lead to higher prices. all right. thank you very much. tariffs on mexico are set to kick in on monday. that is i think the 10th both sides meeting inless than
an hour in d.c will we get a deal in time to avert the tariffs? plus check out shares of apple on track for their first two-day win streak in three weeks. and best two-day performance since the beginning of the year. is this a signal of something? plus mortgage rates falling fast lowest levels in a year but home buyers are still holding back. we'll tell you why and the message it is ndg tseintohe american housing market. we'll be right back. my degree from snhu has helped me tremendously. the flexible class schedules
allowed me to go to work full time, run my catering business and be a mom and parent. when i reached this accomplishment, it was like, it's here, it's happening, it's now. we at southern new hampshire university are the ones who succeed. we are the ones who break through. woi felt completely helpless. trashed online, my entire career and business were in jeopardy.
i called reputation defender. they were able to restore my good name. if you're under attack, i recommend calling reputation defender. and consider joining their groundbreaking campaign to give every american the right to remove old, inaccurate search results by going to righttobeforgotten.org. vo: if you have search results that are wrong or unfair, call reputation defender at 1-877-492-6705. be go[ laughing ] gone. woo hoo. ♪ welcome to my house mmm, mmm, mmmmm. ball. ball. ball. awww, who's a good boy? it's me. me, me, me. yuck, that's gross. you got to get that under control. [ dogs howling ] seriously? embrace the mischief. say "get pets tickets" into your x1 voice remote to see it in theaters.
the dow moving up after the beige book report. just 45 minutes from now secretary of state mike pompeo meets with a delegation from mexico to discuss tariffs and the border kayla joins us now with the latest >> reporter: i'm told the situation is still fluid going into that meeting by a senior administration official who says that today's talks represent the starting line in negotiations with mexico over immigration and boarder security, not the finish line i think it's important for the market in thinking about where we might be in terms of a potential deal coming today or not coming today i'm told the u.s. mca will be pursued on a separate track to today's talk mexico is planning its own retaliation if the tariffs come into effect which seems like the likely scenario.
mexico is saying it is a red line for it to be an asylum country for all central american migrants the economy can't hold all the people passing through mexico and coming to the united states that have been stoking the ire of the administration here notably, the attendees do not include the proponents in the trump administration who have been pushing hardest for that asylum policy to be adopted by mexico even though, this is going to be led by the vice president, mike pence, secretary of state and the acting secretary of homeland security will be there the afternoon schedule is being pushed back a little bit we are expecting the president himself to land in ireland moment ri. and then this meeting is taking place at 3:30. then a press conference by the mexican delegation at 6:30 i'm told it's expected that president trump will be briefed after this meeting potentially not participating directly in the back and forth negotiations
and i've also talked to some people about how the tariffs are implemented on monday. i'm told there are still some technicalities that need to be worked out but perhaps that's an obstacle that could be overcome in the next couple days. >> we'll see president trump tweeting that house republicans support his tariffs on mexico all the way. some key gop senators have signalled opposition mitch mcconnell saying there's not much support in the conference for tariffs ted cruz saying tariffs that destroy the u.s. and texas jobs would be terrible. with me now to discuss is our own eamon javers and tony, good to see you both. tony, how do you come down on this do you think it's likier than not the tariffs go into effect >> i do. i think the president wants to put them in place. i think he wants to make a statement. i don't think anyone is in a position to stop him in the near term is it possible the mexicans can
come forward with enough to have them hold off or delay that's possible. we have peter navarro said that earlier today. but every time in the trade episode over the last couple years or trade wars you try to predict cooler heads and a more rational outcome, you get disappointed usually ends up with tariffs being imposed and i think that's what we're going to see. i think the president wants to -- we've seen him make the case that chinese are paying for the tariffs. i think he wants to make the case the mexicans are paying for something also, even if it's not true >> yeah. i think tony is right about the president's intent here in terms of putting the tariffs on. the question we have to ask is does the president want to take the tariffs off? because we've been sold this tariff program as a negotiating tactic in the short term to get the chinese and get the mexicans to the table that's very much worked for this president. he has gotten the chinese to engage in dialogue and the mexicans to engage in meetings that piece of it has worked.
he hasn't gotten the results he'd like to see it's a work in progress. the question is what's the ultimate goal? is he about deglobalizing the economy? is he about decoupling the united states' economy from china and mexico and bringing economic activity back to the united states. if that's the goal you don't take tariffs off in the short term that's what we have to understand about this president. what is he trying to accomplish here really? i don't think we fully know the answer >> tony, there's opposition, senator mcconnell saying there's not much support in his caucus for the tariffs. the democrats certainly, they're not necessarily going to go along with them at all but what in the world can congress really do beyond a motion of objection, of disapproval that would have no effect of law, and isn't it the case that congress really gave the executive a tremendous amount of the power that the executive is now wielding and
making congress mad? >> yeah. that's exactly right and i can tell you someone who throughout my career working on trade issues, really appreciated the fact that congress seeded a lot of that power to the executive. we were usually facing a recalcitrant congress. the parties wanted to liberalize trade. it made trade negotiations more efficient. early in the administration having a sense that things were flipped, a lot of us went to congress, told members you need to take back your article one section 8 powers on trade and bind the options for this administration to keep them from going in dangerous directions. they didn't do that. they felt they couldn't fight the congress there are things congress can do i don't think they'll do it in this situation because you need mcconnell and pelosi to join forces on those things
>> yeah. yeah >> stranger things have happened >> we're in unchartered political waters anything is possible i think tony is right. there's a lot of reluctance on the part of republicans to aggressively stand up to the president. chuck grassley has been disapproving on tariffs impacting his state. are they going to vote against him? that's a big ask >> absolutely. appreciate it, guys. shares of apple are down 14% in the last month but is now on a rebound the time to buy? plus why falling interest rates aren't spurring an increase in home buying. that's all coming up on "power lunch. is this ride safe? i assembled it myself last night. i think i did an ok job. just ok? what if something bad happens? we just move to the next town.
just ok is not ok. especially when it comes to your network. at&t is america's best wireless network according to america's biggest test. now with 5g evolution. the first step to 5g. more for your thing. that's our thing. dear tech, let's talk. we have a pretty good relationship. you've done a lot of good for the world. but i feel like you have the potential to do so much more. can we build ai without bias? how do we bake security into everything we do?
welcome back to "power lunch. i'm at the new york stock exchange check out apple rallying today after tim cook said china would refrain from targeting the company in the trade conflict. stock up more than 4% this week. we have guests here to talk apple today. jc, pretty good week a little runoff to the lows in
the 170s for apple stock it's looking up. a couple peaks above $200 a share over the last eight months or so. how does it shake out? >> short-term we're seeing some positives. but longer term, i think it's in a difficult situation. and this situation reminds me of where it was at the end of november last year remember we had a 20% pullback we undercut the 200 -day moving average. we had a little bit of an oversold bounce, but that bounce faded and we made new lows i think there's two key technical levels we really need to focus on here the first is the 2 00-day moving average at 192 if we get above that, i'll turn more bullish and positive on the technical setup. if we back and fill and undercut the june 3rd lows at 170, we need to get out of this position and exit apple pay attention to the two levels. >> all right that suggests not a lot of margin for error >> what about the business side in how this stock is valued at a
discount compared to last year how would you play it? >> the main issue is this china threat is real i mean, they're making power moves right now. and the ultimate power move would be to ban iphones. now, if that happens, this thing goes down to $130. however, i think that's a low probability because we basically would be at war at this point and china would be putting their own citizens out of work it's concerning, but unlikely. as for the talk about the app store and the high developer fees, it's a lot of noise. either nothing happens with that or it takes years to play out. long-term we still like it they're doing well transitioning over to more of the service-based model. the deal with qualcomm and shares have a 5g phone next year once we see progress with china, the stock is going to rip. >> extraordinary for tim cook to express that much confidence that apple will be spared if things get worse over there. we'll see how it plays out thank you. for more trading nation, follow
us on twitter. ahead on "power lunch. oil is plunging. crude down another 4 % it went below $51 a barrel plus mortgage rates hit one year lows. what it means and doesn't mean for the housing market and jeff bbezos. we'll look at his new apartment. all this when "power lunch" returns. there's a classic investment thesis called the dow theory it says the transportation stocks can either confirm or deny a broader market trend. but it's important to remember the transports can be sensitive to market influences don't rely exclusively on this theory when making an investment decision woman: my reputation was trashed online,
i felt completely helpless. my entire career and business were in jeopardy. i called reputation defender. they were able to restore my good name. if you're under attack, i recommend calling reputation defender. and consider joining their groundbreaking campaign to give every american the right to remove old, inaccurate search results by going to righttobeforgotten.org. vo: if you have search results that are wrong or unfair, call reputation defender at 1-877-492-6705. welcome back, everyone here's your cnbc news update the trump administration says it is ending medical research by government scientists using human fetal tissue it is a victory for abortion foes despite impassioned pleas
from scientists that some health problems cannot be studied any other fee. fetal tissue research has been funded by the government for decades. agreements made between the countries could be at risk they are blaming the u.s. for undue pressure to denuclearize the foreign ministrying saying there is a limit to our patie e patience president xi and president putin praising each other as they spoke after their meeting in moscow. putin thanked xi for a gift of two bpandas and xi was putin wa his closest friend and army rangers -- the jagged cliffs above the beach in normandy were a major on trac-- >> back to you all right. sue, tanks we have about 90 minutes until
the closing bell let's check on the market. the dow is up 186 points near session highs best backed gains since january. the nasdaq up half a percent crude prices plunging today. oil market closing for the day leslie picker is all over it at the commodity desk >> those declines accelerating within wti crude in the last five minutes down about 3.4%. 1 .78. natural gas down significantly 174% and ice brent down more than 2%. the lows of the day under 50 in today's moves largely a result of new government data showing a surge in inventories but the ongoing trade dispute now being waged on two continents against the u.s. is creating concerns surrounding global growth as well. that can impact the demand for
oil. crude is off more than 20% from its most recent high in just april. >> all right leslie, thank you. meantime there's been another nice rally on wall street that's interesting between oil and stocks the dow is up a third straight day. the s&p and nasdaq trying for a second straight day. let's get the trader's take on what to watch. steve, a fast money trader and director of institutional sales. how are you? >> we have a chart of the nasdaq, and yes, it's nice to see green on the screens for multiple days in a row why don't we look at what the chart is telling us and see if we can make sense on it. if you look at the chart, we go back to that low that you see in december remember what's important about this is that the last time that we heard from the fed take a stance on rate policy was back
in january so it's about this area right here >> the powell pivot. >> exactly and that's where they went basically to neutral so we haven't heard from them, and we've seen this runup to an extreme point, and then we start to see us bouncing from the levels but this is important here this is the 100 % move right? so you follow that up. these were the all-time highs, and then if you look at the retracement levels, this is where we broke down originally and this is where we bounce. this is close enough right here to that 382 on a retracement level. >> is that good? >> it is good. it is good, because you want to see where the fundamentals and the technicals lineup and a lot of traders program their algorithms for the fib retracement levels if you look at the 50% retracement, we're a long way from home. it's good.
we don't want to be close there. this is what's called the buying level. between the 50 and the 618 we didn't get there because of powell's statements and the other fed personnel statements so this is where we're at here but it's interesting if you look at the overlay as well on the s&p and let's go to a different chart. >> so the nasdaq chart looks bullish to you >> the nasdaq chart does look bullish. the s&p looks more bullish you get tech that doesn't give you the performance we've seen in the s&p same type of thing we see the retracements. almost down to the penny when you start to look at the 382 level, that 2722 we bounce at 2728 and the s&p 500. that means the market is taking its cue from the technical levels as well so where did the market originally break down? around the 2810, 28 03 those are the levels to watch. on a daily basis, watch the 2810
level. that's where the market started to fall. remember, the fed stays dovish, the bulls keep running, stay long in the market >> what is this haircut indicator? it's more closely cropped than normal >> is it it might be heavy gel which means i have too much time in the morning. that's a bullish indicator if i'm fielding phone calls from clients, the hair is dishevelled. >> thank you, steve. big drop in mortgage rates in the middle of the spring selling season that should be good news, but it's not motivating buyers much. we'll tell you what's holding them back, and if you can afford this home, nour not worried about a few points on the mortgage interest rate we'll take you inside the most expensive home in ocean city, maryland they tell you stories about days in ocean city. >> me too, but not good ones
mortgage rates are falling hitting their lowest levels in more than a year they're not falling fast enough. home buyers are still pulling back because home prices are high let's dig into what's going on in the american housing market and where it might go from here. joining us is meghan mcgrath and skylar olson meghan, let me start with you. what do you see happening? in my town there is a lot of inventory on the market. it does seem to be moving and i can't help but think that lower rates are helping it >> i think you're right. i think lower rates are helping. inventory is going up a little i think low inventory has kept people out of the market things aren't great. they're not booming but they're
better than they were a couple months ago that's why you've seen the home builder shares continue to go up this year. >> my guess, skylar, is they say all housing markets are local, but there are two distinct ones in the united states there's one that exists on the coasts, and runs from boston all the way down to miami. and the other one runs from seattle all the way down to san diego. and there the prices are high. mortgage rates, coming down is a help but maybe not that much and then there's the other market, pretty much everywhere else, except denver, which i gather is very hot as well >> i think right now you kind of hit the nail on the head the high flying markets previously so hot were where price appreciation were outgrowing income. home values in a quarter or quarter or last couple months been coming down if we want to think about what
it's going to be like in the future, in some ways for buyers, especially those that can get in the door right now, if they have been persistently saving can get an advantage of the higher inventory. at least inventory that's spending a little bit longer on the market, and those low mortgage rates but really, the biggest barrier still in those places is that down payment it's pretty prohibitive and it's outpaced incomes even though in the same markets we've seen income grow the most it's nothing when we think about how fast the size of that down payment has also been growing. >> that's a great point. meghan you like dr horton and lanar. what are they doing right to benefit from the environment >> what we like is the companies are going for the more affordable price points. they're trying to bring the average cost of their houses down they're going after the millennial buyer who doesn't really have that down payment. so those are the companies and that's the segment of the market that seems to be performing the
best in this slow housing market so we're sticking with home builders who are trying to turn their assets fast and go after a lower price point. >> meghan, are tariffs likely to affect the home builders at all? >> i think in a secondary way. i think there's two things two worry about. one is higher prices of the inputs they're putting into the house. things like washing machines, cabinets, that sort of thing they'll have to offset that somehow. the good thing is lumber prices are down that's an offset also a secondary impact. does this start to hurt consumer demand we want to see consumer confidence stay high >> i was with a friend from pittsburgh it was one of the lowest priced major metros in the country. he says you can't believe how hot it's become, particularly in what we could call developing neighborhoods. >> yeah. add to that list places like indianapolis and atlanta those are all areas where because of their affordability,
they're still able to capture a lot of interest from your first time home buyer. when you think about what's happening and you see the price corrections, an important thing to remember is that long-term, we're still in a phase where there's a lot of first-time home buyer demand millennials is a massive generation and they're making up a larger and larger majority of their first-time home buyers one of the ways to think about it in your mind is think about all the first time home buyers -- all the people who entered their early 30s over the last ten years there will be more people turning 30 every year than the year before for the next several years. in a long-term sense, it's a price correction but there's plenty of people interested in the entry level homes? >> why in all the transactions that americans make is buying and selling a house so -- it's got so much friction >> difficult, brutal
>> i was almost going to say a bad word it's so hard, and everything else, you can buy a car online but the house transaction, it just doesn't seem to be in the 21st century >> yeah. there's a lot of things going on there. one, it's a major, major, major purchase it's the biggest purchase people make during the course of their lifetime we don't do it often once it happens, you put it in a box and say thank god that's over with. and you don't come to it again it's a market that kind of changes slowly because people don't interact with it very often. over time and as more and more of these places become digital, that will change and continue to evolve in the meantime, it's rough out there. >> skylar, meghan, thank you >> and from entry level of the upper echelons of the housing market, today it's the most expensive home in ocean city, maryland >> that's right. today's power house is the beach
compound of the ceo of jack studios in new york city the entrepreneur loves fishing so much he poured millions into this beach house in ocean city, maryland where he competes in the biggest fishing tournaments in the country he admits he built one of the most expensive residences in town knowing full well he probably would never recoup what he put into it take a look. >> this is no ordinary beach house. it's a cross between a manhattan loft and a beach compound. >> this is the best kitchen made i not only had to wait a year for it to come from italy on a ship then i had to wait additional time because the two customers in front of me one was the king of morocco and the other was tom brady and gisele >> this is the white room. that's a white marlin.
i've been chasing blue marlins and white marlins. you can fish from almost every room in house. i love fishing that's what brought me here. this compound is made up of two homes. the way i connected them was i created a sky bridge you can look out on one side and see a marina and on the other side and see another marina. this is the master suite that's where all the magic happens. it doesn't get any better than this i have 190 foot dock out my back door i throw in my crab traps in an hour i get fresh maryland blue claw crabs. it's satisfying to me. i was in turks and caicos. i was so inspired by the swimming pool that when i came home, i designed it and had it built right here it's a custom-made golf green that i built myself with some of the trickiest holes. don't bring your checkbook here.
i'll take it from you. i can tell you from ocean city to east hampton there isn't anything that looks like this house. it's my compound when i leave the city >> all right so why is he selling that for about 3.6 million even though he put about 5.2 into it? he was spending more time getting there than he was fishing. >> that might be the most outrageous one you've brought to us yet >> he's a character. >> the king of morocco was interfering with his kitchen >> i hate it when that happens >> where the magic happens you also have exclusive video of a new penthouse of jeff bezos. >> yeah. so we shot this actually before jeff bought it so this is what you're seeing when it was on the market. it's three stories downtown man hat than he is buying. he's spending about $80 million on the penthouse, plus two apartments on the floor below. combined four floors
we won't have to wait for his kitchen. 12 bedrooms. this is about privacy. a private elevator, thick walls and floors, arched windows a terrace with to avoid prying eyes it's a wall that's beautiful >> it's a wall >> please, invite us over. >> yes it has a library, staircase. >> a house warming party >> he's getting the penthouse for 58 plus the next two for about 20 a good deal for him. >> wow before you go, this story is also outrageous. tracy morgan bought a car and someone ran into it? >> manhattan motor cars is the dealership for a lot of big celebrities. he had just traded his bugatti in for another bugatti, and 30
minutes later just after he bought it, he -- this honda -- >> is this actual footage? >> yeah. show that again. >> this is an actual picture of the accident that is -- >> that person was trying to make a jersey right turn right into him >> might have got ticketed for that >> middle lane, right turn >> manhattan motor cars is going to fix it. they repair it it's a lot of carbon fiber not easy to fix. >> for free? >> yeah. they're going to take care of it i'm sure the guy's insurance is not going to want to pay for that >> that's a nice perk. >> wonderful stuff >> robert, thanks. up next, it's today's tasting menu who stands to lose most as robots take our jobs we'll tell you what california is trying to ban now and are you embarrassed to take a lunch break at work this we know who is, and that's next on "power lunch."
when-- when you hear those words that you get diagnosed with cancer. (osamah) successfully treating it still remains one of the most enormous challenges facing us today. we realized that, if we developed the technology that could take 2-dimensional patient imaging and convert it into 3-dimensional holographic renderings, we could enable surgeons to dissect around the cancer so we can precisely remove it. when we first started, we felt like this might just not be possible because computing power just wasn't there, but verizon 5g ultra wideband will give us the ability to do this. we won't rest until we see this technology being able to change lives.
today, life-changing technology from abbott is helping hunt them down at their source. because the faster we can identify new viruses, the faster we can get to stopping them. the most personal technology, is technology with the power to change your life. life. to the fullest. here's a little taste of some of the other stories we're watching today automation could force as many as 100 million women globally out of their jobs by 2030 according to a new study from mckinsie global institute. this refutes the theory that automation would mainly affect
male workers i.e. factory workers and others. the study found both genders would be affected roughly evenly pointing to emerging automation in administrative jobs, 72% of which are currently held by women. mckinsie is not projecting job loss, however. the study says 171 million new jobs occupied by women could be created by 2020. >> they want the -- they get the headline the stories not -- so excel came around in the '80s and bookkeepers found new jobs i don't know what value this is adding let's talk about a california clamp down beverly hills city council voting to outlaw sales of most tobacco products in a sweeping ordinance. meanwhile, they want to scrap hotel toiletries another step in reducing single use plastic within the state we'll see if, as goes california, so goes the rest of the country. >> and a lot of the hotels they have these dispensers as opposed
to the little items on your sink >> some of the major chains like marriott were nearly saying we're just going to roll this out ourselves. millennials worry more about lunch breaks than other generations do they are three times more likely than baby boomers to believe their colleagues will judge them, they will judge them if they take a lunch break. this may be self-inflicted millennial bosses are twice as likely as gen-x bosses to look down on employees who do take lunch breaks they did not work at time incorporated in the 1970s and '80s >> what was that like? >> lunch began at 1:00 and ended whenever 3:00 >> so that's why you have a more forgiving attitude >> there were no meetings before 3:00 >> now we're eating at our defrk. >> the era of mad men. >> companies will be busy importing this weekend that story is next who says our bank isn't tech enough?
hours. why the delay? cognizant is helping banks use digital technologies at scale to advance speed to market. tariffs and goods from mexico are set to kick in on monday barring any developments this afternoon one company is trying to rush their products across the border before that deadline >> constellation brands up nearly 2% today suggesting that wall street might be pricing in that the u.s. and mexico can get a deal done and avoid tariffs. the company not take anything chances. constellation is trying to get ahead of the tariffs stocking up
on as much beer as they can import this week that's according to a wells fargo analyst report constellation's cfo saying he's confident they can absorb any short-term tariffs of 5% to 10% but beyond that, he says they'll either have to raise prices or cut costs. now there are other players also exposed here, including heineken, ab inbev and coors but constellation brands, their exposure is major. 75% of its beer portfolio is imported from mexico bmo thinks the number is more like 95% to 98%. so you can bet they're watching very closely what happens with mexico and looking at the stock since trump first announced tariffs on mexican imports, constellation has recovered a bit from the initial hit to its stock price, but still trading down almost 4% since that announcement >> yeah, it will be a busy weekend for them >> going to be -- do some beer future buying at my local
purveyor >> we also saw this with -- >> check please. >> people would stock up on washing machines before the tariffs went into effect >> it will be interesting what happens within the next hour there's a meeting at the white house. i believe vice president pence is there conducting it with -- and mr. pompeo, secretary, with mexican dignitaries. there is hope they can work something out before the tariffs go into effect on monday we shall see >> we've heard that from chuck grassley and peter navarro this morning, which was a little surprising meantime, he's not as optimistic that they will reach some kind of deal. and this tit-for-tat coming as china, the strategis china trade basket has actually been surging in recent days they said it could be part because of just the fed rate cut talk and markets going up in general. they take the message seriously. it's caught every major turn in china's trade debate and could be catching a --
>> tim cook didn't think apple would be hurt very badly by chinese retaliation, if the tariffs do go into effect. >> maybe some wishful speaking thanks for watching "power lunch. "closing bell" right now see you tomorrow good afternoon welcome to the "closing bell." i'm wilfred frost. >> i'm sara eisen. breaking news this hour. vice president pence and secretary pompeo meeting with mexican officials over the proposed tariffs on mexico just about half an hour, mexican officials should be arriving any moment let's get to kayla tausche at the white house. >> some of those officials are already starting to arrive mexico's economy minister spoke on her way in just a few moments ago and expressed some optimism about what could result from this meeting listen >> we'll find ways to have workable plan.