vimarsana.com

Power lunch starts right now and welcome to power lunch, im Michelle Carusocabrera despite ges drag, although were watching to see if it goes positive, major averages are hitting record highs again dow, s p 500 on track for their sixth straight week of gains check out some of the movers the Home Builders are higher, the etf that tracks them, itb, trading at a more than tenyear high on pace for its eighth consecutive weekly gain. P mp p g down 8 . Paypal rallying on its earnings beat brian . Thank you very much big day for the markets, big day for the markets really they say everything is bigger in texas including todays power lunch because guess what, were back in houston and with the billion dollar buyer, himself, hanging out with his new toeam, the houston rockets. 2 billion buyer of the rockets. Going to join us for the next couple hours we have great guests we got the mayor on, might get a visit from cp iii and james harden, and the man many consider to be the best Hedge Fund Trader of all time. A big huge hour from texas, checking in on the recovery, the rockets, hanging with tillman. Going to be a lot of fun. Tyler, ill hand it back to you and see you in a few minutes. Lets start with shares of General Electric, shares rebounding from the worst level of the session, basically flat now, who would have thunk that still down 25 so far this year. A very ungelike performance. The new Ceo John Flannery speaking to cnbc today using words like horrible and unacceptable Morgan Brennan joining us with more morgan strong words from what was a really strongly disappointing quarter and this is a quarter that a number of analysts are calling a, quote, kitchen sink quarter since its John Flannerys first as ceo of ge. Its all about restructuring were still very light on details and makes the november 13th Investor Update all the more crucial meantime, to sum this up, i would say there are three big factors in play. Cash flow, dividend, and asset sales. Operating cash flow, by far the it biggest disappointment right now. Ge had previously forecast 12 billion to 14 billion for the year today, it cut that in half the cash flow for 2017 is horrible 7 billion number, its way off of our expectations, anyones expectati expectations that is not a thats not the new normal 7 billion is not the new normal theres a number of steps were going to take to improve that significantly in 2018 and beyond now, as we found out on the call, this is what spurred outgoing cfo jeff bornsteins unexpected departure management did say there were big restructuring charges that wont carry over until next year and flanner is already taking steps to cut costs of course, it call calls into question the future of the dividend which, by the way, with a stock down 27 this year, now yields over 4 on that flannery did not make any promises it was safe even though a final decision has apparently not yet been made. I look at all the Capital Allocation things quite rationally if it makes sense to pay a dividend, pay a dividend if it makes sense to buy stock back, buy a stock back mikes sense to acquire a company or sell a company. I dont view it very emotionally really all around whats the best use for the companys resources, management capital, how does that accrue to the benefit of the owners which brings us to the next big topic. More divestitures. Vowing to shed another 20 billion in assets over the next few years. We wont know what or how thats going to happen until next month. Analysts are already pointing to segments like health care, lighting and transportation as possible candidates and of course its biggest segment, power is really under the microscope right now, too, because weve been seeing that soften so even more changes from a company thats already been through so many. Okay exactly. Thanks, morgan. All right. After ges biggest earnings miss in at least 17 years according to the spoke investment group, whats the outlook for the stock now . Lets bring in barbara, shes analyst at morningstar good to have you here. Hi, thanks for having me. I think a key question about the future of the stock and its price has to do with whether or not the dif devidend is going to hold do you see any way possible they keep the dividend in tact . After this surprisingly ugly quarter i think the risk of a dividend cut has increased you know, the reason for that is, you know, when you look at what management had laid out originally, we thought even if we came in at the low end of the previous expectations or missed it a little bit, they had options in place to sort of bridge that gap for the next couple years until underlying earnings improved but, i mean, it was a big miss this quarter you know, industrial Free Cash Flow is going to be very weak this year. And not only that, but the ge capital dividends to the parent now seem to be off the table so if it that is, indeed, the case, you know, we think that ge would probably do itself a favor for reviewing that dividend policy and potentially making a dividend cut. Run viewers through the numbers, they need 8 billion to meet the commitment. Cash flows running at only now 7 billion they could borrow. Then, by the way, theres going to be cap x as well, right theres a real squeeze about the money, the capital that would be available to pay investors. Absolutely and so, you know, if you think about it with the new ceo putting his strategy in place, we think why not give himself a little bit of breathing room, you know, make the cut now. You know, put that out there and then give yourself a little bit more breathing room Going Forward when youre trying to reposition the company for growth you know, barbara, Morgan Brennan just outlined some possible asset sales would that be part of your prescription for the new ceo and if so, what would you get rid of she mentioned one of the things, had been one of the Profit Centers and that was a medical devices. Absolutely. In fact, i think health care is probably not one that i would point to and the reason for that is that is a good cash flow business and i think a lot of the changes that John Flannery had put into place improved the cash flow in that business so if you think about ge having an overall weak cash position, i wouldnt like to see health care divested. You know, they sort of need that to boost those cash flows so indead, you kni instead i would look at maybe transportation, maybe thats a business that doesnt fit well in the portfolio, doesnt contribute as much as it maybe takes from the portfolio. Whats in transportation . Is that locomotives . Thats locomotives jet engines, what. No, thats the locomotives business. Locomotives. Thats right. They have a very small miningfocused business housed in that segment. What should ge look like do you think . In other words, what do they keep, what do they sell up and what multiple does that imply for the stock . We definitely look at health care and aviation as the two gems of that ortfolio, you know, those two businesses we expect to continue to be strong Going Forward. You know, we we think it will probably hang on to oil and gas and power, you know what is the mission of ge, what do health what do these three businesses have in common to warrant being under the same roof you know, a lot of the technologies that come from these businesses do feed into the rest of the segment so if you think 06 healof health carey have imaging technologies, for example, that help oil and gas imaging flow, aviation and power often share technologiieies amos each other i think ge is one of the few diversified industrial businesses that can claim the type of economy in scope threatening to go positive, only lower by 2 cents after selling off so dramatically. Such an ugly quarter. I think there are two things, one, i think the market already priced a lot of these concerns in and two, flannery is taking a longterm perspective and maybe investors are reacting appropriately. Barbara from morningstar. Thanks for joining us. Thank you very much. Were at session highs for all three major averages. In the meantime Congress Taking a major step toward ftax reform what happens next . Ylan mui is live in washington. Reporter republicans plan to announce the date for rolling out their tax bill once this budget is, as they say, signed, sealed and delivered and that budget could be wrapped up as soon as next week. Republicans significantly sped up the timetable last night when the Senate Passed its version 5149. Now usually the next step would be for the house and senate to get together and to negotiate a time version but now republicans are saying that they can skip all of that and save themselves weeks of debate so what they would do instead is the two chambers, they ironed out their differences last night and one thing that they did was increased defense spending later on in a way that will make the house happy and in return Congressional Republicans drop their call from mandatory spending cuts and both the house and the senate have now agreed to a tax cut of 1. 5 trillion. So this means that the house can vote next week to just adopt the senates budget and then they will be done they will have the vehicle for tax reform, and they can move on to actually writing the bill now, of course, some details are already leaking out. Its unlikely, for example, that the deduction for state and local taxes will be entirely eliminated, and House Speaker paul ryan confirmed something weve been reporting for a while, h e told cbs this mornin there will be a fourth rate for healthy households, he said this is something President Trump has been personally pushing for. Ylan, thankss very much. We appreciate it now that it passed the senate, will it reignite the socalled trump trade . Margaret is a portfolio management, part of leg mason. Fund is up a very nice 20 this year kochb gara congratulations to you on that thats a great performance four stars by morningstar. The market seemed to react positively to this news last night that the budget agreement had been agreed to by the slimmest of margins. Well, yes, certainly the market is up i think its more business fundamentals than it is news coming out of washington look at what weve seen this week in terms of results and in terms of ceo commentary. Honeywell, really good results across the board and theyre very optimistic about improvements that theyre seeing in the economy you heard good things from American Express earlier this week you see emerging markets are improving. Now tax reform clearly do the politicians not matter woell, weve seen lots of bak and fort h in terms of things on the docket, whether Infrastructure Spending or Affordable Care reform or tax reform i think the market is taking more of a wait and see i dont necessarily see our companies that are all u. S. Based taxpayers ripping today on this news i think the point is that if we do get tax reform, its clearly positive to earnings and positive to gdp in 2019. You dont think thats priced in right now do as we get more progress toward tax cuts, whatever you want to call them, the market rallies more or is it there already . I think the market could rally more. How much more. I think, well, look, if you assume major tax reform, Major Corporate tax reform in 2019, it could add five points or so to corporate earnings growth. Thats a lot. Why does the effect pass to 2019, not 2018 if they pass it this year or pass it next year, they would probably makeit retroactive they make it retroactive, it could be sooner. Otherwise it takes a while for it to work its way into the economy. The more powerful effect might come in 2019. Yes, and corporations to start increasing cap x to show better results and for the market so with the fundamentals you see, you seem to think the fundamentals are good, we didnt get to Monetary Policy but i guess you baked that into your formula. Where should i put my money now . Well, look, i mean, with the market up as much as it is its definitely harder to find ideas particularly in tech things that have really moved in excess a lot of am don, microsoft. We love amazon. The sector weve been spending more time on is retail, a sector that underperformed the market in each of the last three years. We believe in amazon because of amazon i think the market is so myopically you think of amazon as retail or tech . I think it is both, really has two businesses, right . Sure. Within retail, i think the market is really discounting that amazons success is at the expense so, yeah, tell us. I think costco is really interesting because the thing about costco that is so neat and really protects their business is because they have a membership fee income. They operate their stores at breakeven who can compete with breakeevn that creates a really nice mote around their business, if you look five years out, i think costco as a Business Model you own it now, thinking about it i own it now. I wanted to ask you about celgene on the failure of the Crohns Disease drug already concerns about slowing growth in some of their other drugs like otezla. Still hold onto this any doubts in celgene sfaand longterm prospects . I think the good knnews about celgene, they have a diverse pipeline, dont need every product in the pipeline to work in order for them to fill the hole when it goes after patent come back any time. Weekly rig counts. I wait for this every week the rig counts are just out. Seema mody is at the commodity desk, counting the rigs. So excited. U. S. Oil drilling rig count down for the third week in a row off by seven at 736 so the supply demand equation certainly still part of the discussion when looking at the price of oil, which is higher by 14 cents when looking at wti crude, brent crude, the international gauge for oil higher by around a half a percent at 57 a barrel. Michelle, back to you. All right, thank you very much, seema. Coming up, medical devices, are they susceptible to hackers . Were going to talk to the head of a Cyber Security team trying to protect pacemakers. Were going to go back out to brian in houston. Hey, brian. Reporter hey, michelle, thank you very much. Well, the horn literally sounding on power lunch. See the rockets practicing behind us here thats okay because we happen to be with the owner. This guy coming up after the break, were going to have an indepth discussion about the business of sports why buy the team, harvey relief. Theres so much to do about the consumer, really were calling you the consumer king now. You dont know that because we just made it up. Were going to have a great conversation with tillman right after the break. Power lunch rolls own an the rockets keep practicing. Welcome back to power lunch, live in houston at the Toyota Center with the rockets practicing behind us the 20 rockets. Were joined by our good friend, the billion dollar buyer, new season coming out soon, Tilman Fertitta first off, welcome, thanks for having us in your new home. Its great. Always to have the power lunch team in houston, texas, with e feel special. Thanks. I didnt tell you to say that. I appreciate that. I just realized something, too, not only are you a billionaire, now the owner of the rockets, youre also the only undefeated nba owner ever. Youre right. Sell it now and no, im kidding. Why lets talk about this, seriously, though, tilman. You got a lot on your plate, 600 some restaurants, Golden Nugget casinos, hotels all over the country. Why buy the rockets . Everybody wants to be a part of their hometown, and i started following the rockets 35 years ago, and have been a part of them in different ways for 35 years. But to final will i haly to have opportunity to own a team in your hometown, its the most special feeling in the world theres a lot of openowners t et want to buy different teams but have to in different cities. To buy a team where you grew up, when i followed the rockets when i was in Junior High School with alvin hayes. Yes. Thats how far it goes back this is a great feeling. I love it. And looking forward to this great season. Okay. Im going to ask were at the beginning of the show, if youre going to punch me, do it now im going to say something, you might want to hit me you had the chance to buy this team, what, 25 years ago 20 when was that . 24 years ago. For how much . 80 million 80 million 20 years pa s ag. So youre a value guy, youre successful at almost everything you do, why is 22 a fair price for the rockets . A lot happened in the last 24 years. Maybe if i hadnt missed out 20 years ago, i wouldnt have created the company i did, i would have been a sports junkie. A lot happened with television, Everything Else over the last 24 years. Never been a sports franchise sell for less. People can say, gosh, 2. 2 billion, i still think in the next seven, eight years, this franchise would sell for 3 billion. Now, i will never sell this team okay i can promise you that but you will start seeing some of these major market teams trade at ridiculous prices. You think this is just the beginning. I think its just the beginning. How much did Steve Ballmer change the market, though, when we paid 2 bills for the clippers i think it was headed that way. Did he maybe move it up a couple years . Yes. I probably moved it up aup c co more years this is where its going theres a lot of money out there. People want to own these sports team its moving some the equities i had in my other companies into this this is a generational asset here that is never going down. 20 so pretty good start this is incredible i was joking yesterday that the nba is the new nfl and the nfliv ratings. Nfl is down. Doubleheader opener was up 53 in ratings, probably unsustainable amount, but why do you attribute this big jump, to what you attribute this big jump in basketball laratings . Its pretty incredible it is incredible. Were really becoming a world sport not just like soccer the nfl is having some issues with the cte and with their other issues of the National Anthem. The anthem. Yep. Were going to get to that. And it just is. I think the younger audience likes the nba. Mlb, average audience is 60 years old then the game lasts for 3 1 2 hours. And this is a True International sport. They play is everywhere. But its energy and its why have restaurants changed . Because we want the entertainment value today. Whatever we do today, and especially the younger millennials, they want entertainment. Okay this is entertainment at the highest level. You feel like you got a good deal on the asset. I think i got a very fair deal on this asset if i had it to do all over again, id do it again. We have the full two hours. I want to end this part of the sbr er be vi interview with this question the nba has a you must stand up for the anthem it shows how forward thinking the nba right now, thats a policy that was put into place not just recently, its the National Anthem. I believe in protest anybody thats whats so great about this country we can protest about anything. But why not have had a rule that you stand up for the National Anthem you do anything before the game, after the game, i dont care what people do but its the National Anthem so why do you ever want to be decisive yeah. To tilman, we got a couple hours left with you. I think chris harden and james paul may try to join us. You never know, might be walking this way. The owner here, 2 billion buyer, himself, Tilman Fertitta. Ill send it back to you really interesting interview coming up in a few moments with john arnold, considered to be the greatest Hedge Fund Manager in all time. Apple is opening a new store in chicago today apples vision is for its stores to be much more than stores. Josh lipton is live at the new chicago location hi, josh. Reporter hi, melissa, i just had a chance to speak with apple retail chief angela arands, talked about her vision for the stores, retail workforce, competition with other Big Tech Companies. Thats all coming up next on power lunch. Its not just a pay check, you actually like what you do. Even love it. And today, you can do things you never could before. Youre developing ai applications on the cloud. Finding insights hidden in decades of medical documents. And securing millions of iot sensors. So get back to it. And do the best work of your life. And do the best work of your life. Throughout my career, ive been fortunate enough to travel to many interesting places. Ive always wanted to create those experiences for others. With my advisors help along the way, its finally my turn to be the host. When you have the right Financial Advisor, life can be brilliant. Ameriprise apple shares up 35 this year today the tech giant opens a new store in chicago theres a new vision for this one. Much different from the apple stores youve been used to josh lipton is in chicago to explain. Hi, josh reporter melissa, this new store in chicago is going to open its doors for the first time in just about five hours. That means apple now has 497 stores in 19 countries all around the world its not the only tech company thats opening new brick and mortar stores. For example, amazon is opening new stores, too. I spoke with apple retail chief Angela Ahrendts about amazon and other Big Tech Companies and whether they pose a longterm threat i dont think about it frequently ive read that theyre investing and alalibabas investing, goog even said theyre going to invest billions and open up stores i have read that honestly, i think its great, for the economy, i think its great for employment and i think it reinforces the physical retail is not going away that there is a purpose. People want the Human Connection they want a place to pick up their products, et cetera. So i think its i think the great news is, as you said, were nearly 500 stores ahead of them the tenure of our employees is unbelievable we have an over 80 retention rate in america, alone so i think it will take them a little while to catch up. Reporter we also talked about a. I. And automation and the potential impact those kind of technologies could have on the retail industry, and i asked Angela Ahrendts whether her retail workforce should feel threatened or risked by these kind of technologies heres what she said i think the world just keeps changing last year, alone, we added four new positions in the stores. Including the creative pro which i talk a lot about that helps unlock your passion, et cetera so i think the onus is on retailers, on us, to continue to evolve thats why the space in chicago, here on michigan avenue, is totally flexible we can move anything. Reporter now, Angela Ahrendts has a new vision for these stores she actually doesnt call them stores she calls them town squares. Should be places where people meet up, attend live concerts, maybe take a class or workshop open question for traders, investors, whether that kind of communal set is going to lead to greater sales growth guys, back to you. When you walk in, does it feel different to you from an apple store that you been in before, josh reporter well, certainly, ty, first of all its on the Chicago River so its a very different feel in that sense when i took a tour of the store with Angela Ahrendts, it feels different in the sense she has a very clear vision of where she wants to take this store for example, theres this giant video wall downstairs near the retail space which is right on the river front there. Thats going to be for classes thats going to be for community. I can tell you guys that, you cant see it, but right off camera here, apple erected a huge stage, clearly someone zbo going to perform later thats the idea. Does that translate to sales growth we know these stores are already productive, generate about 5,000 in sales per square foot. Thats way more than any other retailer right all right. Thank s very much, josh, appreciate it. Coming up, going to go back out to houston, Brian Sullivan, for a rare interview, and well be back in a minute. Reporter all right, ttyler, thank you very much. We got the rockets down here theyre pack b advertising hard were going to pack a little tv after the break with a rare and exclusive interview, john arnold, who was until Mark Zuckerberg the youngest millionaire in the United States now doing a lot of great work with his foundation. Ar a mbelk about policy, big phmanday a little bit about energy john arnold coming up right after the break on power lunch. Not rebalancing your portfolio. Pursuing your passion, not reacting to market downturns. Focused on what you love, not how your money will last through retirement. Let us help you with those decisions, and get on with your life. We make it easier to plan for retirement with day one target date funds from prudential. Look forward to your 401k plan. When it might be time to buy or sell . With fidelitys realtime analytics, youll get clear, actionable alerts about potential Investment Opportunities in real time. Fidelity. Open an account today. Im courtney reagan, heres your krcnbc news update for thi hour trump fed watch. Janet yellen back at the white house today. A source telling krcnbc that th fed chair was meeting with top economic adviser gary cohn for lunch. Former attorney general Loretta Lynch meeting with House Intelligence Committee staff this morning, as part of their probe into russias interference in h the u. S. Election she met with the senate Intelligence Committee yesterday. Schools in puerto rico set to reopen next week, more than one month after Hurricane Maria devastated the u. S. Territory. This as the governor confirms that the death toll has risen to 49. And First Lady Melania Trump continuing a washington tradition, donating her inaugural gown to the Smithsonians National museum of American History the dress will be featured alongside others worn by michelle obama, laura bush, jacque kennedy, and Martha Washington thats your cnbc news update at this hour. Back over to you, michelle got it, thank you so much, courtney. All right. Markets right now just a few points from intraday highs take a look. The Dow Jones Industrial average higher by 1138 point s p higher by 11 nasdaq higher by 33. Were checking on shares of the ge, member of the doumw jones industrial average tried to move toward positive territory. Gotten very close. Still down 4 cents, well off, however, the session low brian, back to you reporter michelle, thank you very much. Were back here at the Toyota Center with the rockets practicing behind us joined by their owner Tilman Fertitta. Were pleased and honored to be joined by john arnold, may not be a household name but probably will be down the road. John arnold considered by many to be the greatest Hedge Fund Manager of all time. Reaping a report eed 317 return in just 2006 making him a billionaire he has since retired and now with his wife, laura, is running the laura and john arnold foundation, doing really Interesting Research work into criminal justice, education, Public Finance doesnt do, id say, a lot of tv, john, i dont think any tv thank you so much for sitting down with cnbc. Great to be here. Thank you very much for coming back to houston. After the storm, theres a lot of media press, the nation got a lot of attention on houston, but after a week, the story moved on and there was a string of disasters and the virgin islands, puerto rico. One after another. Florida and people have forgotten about houston, but theres still a lot of work to be done here. There is. Really appreciate you being here. No, listen, this guy is not going to let us forget it. He told us to come back. On a serious note, i feel like an honorary houstonian you guys have been so welcoming. Theres a lot of things to discuss. Lets jump right into it your guys at your foundation have done a lot of work, big thinking, seen your tweets about fema harvey is behind us, okay . Whats done is done. Is there a way do you think you guys have studied to prevent you cant stop storms. How do we build smarter i love houston, but as you said, the city is designed poorly, if designed with any thought at all. What do we need to do . Two things, first, be honest with ourselves about what the threat is. Its too easy to ignore what the threat we can do that with how fema has accurate flood maps, right, we also theyre 30 years old. Theyre 30 years old and theres also a lot of politics involved with drawing those flood maps so fema wants to bring in a new flood map thats accurate, up to date and neighborhoods resovolt dont want housing prices lower, dont want to be forced to buy insurance. Theres a real backlash against having accurate data the second aspect is we need to be honest about whats a 50 year flood, 100 year flood, 500 year flood. We had a 500 year flood this year i studied probability in college. This is possible but highly unlikely as the Ocean Temperatures have been warming, as development happens, we have more impermeable surfaces, we will have more floods we need to think about whats the real risk of these needs, which then leads to whats the right cost benefit analysis on what to do take the Hedge Fund Managers approach, take the logistical approach to this because its politics, but its also an emotional issue because youre dealing with peoples homes. We are. Its hard. We are. No one wants to be told, i bought this house, and it wasnt in the floodplain, now youre telling me its in the floodplain and im going to have a hard time selling it. Yeah. You hit it deadon, john. First off, fema, on the coast, they tell us exactly how high we have to build so we never get it again. But they dont do that in h a noncoastal city and say, well you live by a bayou, you live by a lake or a creek, youre going to flood x amount of times fema probably should come in and say you cannot build until youre eight feet above sea level or 14 feet or whatever and then next what you said, and i say it all the time, weve had a 500year flood, a 100year flood, and a 100year flood 3 years in a row and you go two years before that, we had a 50year flood lets get that right you you know . Lets go back to your probabilities and say what is this really . Because its happening almost every memorial day or june in h the city of houston. Richard faber won the equivalent of the nobel prize in science, one is people dont like to have the fixed payment stream to protect themselves against a potential unknown big loss in the future and thats exactly what we see on dealing with national debt, what we see dealing with climate change, what we see with preparation for disasters is people dont want to make that investment today to prepare a city for some unknown in the future. If you could figure that out, talk to every politician in the world, john. Lets talk about Something Else before we get to energy, which is big pharma pricing. Youve been very active on social media coming out. Youve got an idea you would like to eliminate the middleman, make Drug Companies negotiate directly with medicare why are you so active on this topic . What do we do about it you guys have studied it. My wife and i started a foundation, arnold foundation, concentrates on Public Policy specifically in areas that is a market failure the pharmaceutical industry. A hot topic on capitol hill. Were going to agree on a couple things, first is pharmaceutical industry makes many great products. I take them, you take them we want to incent them to keep coming up with good products in the future, but also, number two is, that theres vast majority of americans agree that the pricing peck nichl mechanism is messed up politicians from donald trump to Bernie Sanders agree the system is messed up the question is if everybody agrees the system wrong, why does it persist . I have a theory. The pharmaceutical industry contributes over 200 million a year through their lobbying, through direct political donations so the politicians will say one thing but when it comes to actually passing a bill, they dont do anything its easy for them to be silent. I think the best example of this happened over this past week with the example of there was dea was getting aggressive about shutting down the pill mills they were making progress with this this was harming the farm suit can industry. So they pushed back. So they pushed back get tom marino, marsh isa blac n blackburn. We end up with really bad Public Policy. We got to fix that. Right lets did you really make 317 in 2006 when you talk about talk to hedge funders, they whisper your name in hushed tones, do you really exist did you make 317 in 2006 . I dont remember. To be perfectly honest, i dont remember. Were you close . A very good string of years we had from 2002 really through 2008 where i think it was the best string of years that has existed in the Hedge Fund Industry could you do it again now no. Why not the two things changed. One is specific to the Natural Gas Industry one more broadly to Capital Markets so Natural Gas Industry which had been characterized as breaking into two periods. Prenatural gas shale and post with 2008 being about that cutoff period. So the period before 2008 was characterized by demand incre e increased every year got harder and harder to find new supply and it was relatively supply and demand, so to get the market was not balanced it took very long moves in order to balance the market. It was a market that really had to balance twice a year. Unlike many other commodity industries. Are you worried about oil and gas prices now weve been to houston a lot. You think theyre fairly priced . I think natural gas is a boring industry right now. Oil is fascinating because why theres this big shift for decades the question has been about supply the demand grew 1. 5 plus or minus half a percent each year and the question was supply. Was it could opec Stay Together could the industry find enough new supplies and now over the recent years what was the growth rate in shale . I think the coming ten years is more about demand. So the question about whether weve had Peak Oil Supply or not is secondary to the question about is there peak demand a lot of this is a direct impact of whats the answer its a question of Everybody Knows that the a. V. , autonomous vehicles, electric vehicles, are very bearish for the oil industry the question is how bearish. Thats a function of a couple things how quickly will these come to market yeah. And then whats the adoption trend look like . H a lot of analysts are looking at this as a linear adoption so it goes from 1 to 2 to 3 theres a very good theory, i think best articulated by tony seva, whose idea is theres a convergence of the four technologies, electric vehicles, autonomous vehicles, very cheap electricity through renewables and the ridehailing apps. Those will come together to structurally change transportation in the future so people arent going to own cars anymore in the future people are going to use transportation as a service. Yeah, bearish for oil. Ramifications for that are terribly bearish on oil. The question is is this a linear curve . Or does this look more like the Technology Adoption curve a slow burn or a crash. Which is the s starting in 2020, peaking out in 2030. If so, the oil industry looks very different. I agree with what a lot of what youre saying were not going to have demand for energy like we have in the past because the consumer is changing out there, just the way they live. But then when you look at shale and you look at were not even doing a lot of offshore anymore because of the cost, even though we can produce so much how does oil ever get back to 70, 8 80, 100 . I dont see it happening do you its hard shortterm supply disruptions, you can have tightness in front of the market. The problem is you cant have a strip, a forward strip, that producers can hedge at 60 theres just too much production in the United States that can come on to that level. Can happen in month one, month three. If you give a producer a year notice, or three years notice, were going to have 60 drip, theyre going to be hedging and bringing on huge production. Two more hold on im sorry, go ahead, tilman. You know, one more thing, the guys in shale and everything used to lose money at 50. Now theyve found a way to make money at 50 not all of them. But its happening, though, because we figure out Technology Wise everything. I think were going to struggle just like you said, go ahead to me was the question to me a question to him i know you wanted to ask him a question. Just for the measure of time, john, before we let you go, i got to ask two more questions. Is the stock market rally for real would you be long stocks right now no. Is this the point in the interview where you ask if im cautiously optimistic or strategically ive heard that term on cnbc a few times, cautiously optim t optimist optimistic what do you make of it i have no idea. I think as a when i was running my hedge fund, i was very diligent about trying to identify whats my advantage in the market and i my advantage in the market is not that i can predict where the overall stock market is going or Interest Rates are going, where currencies are going. I think you have these systems that are so complex that they overwhelm the ability of any one individual to predict. What do you mean by that . A has it destroyed alpha i dont know if its destr destroydestro destroyed alpha. Definitely dampened volatility asset prices dont change day to day as frequently as the stock market shows them to be. So its i think this structural decrease in volatility is smr r many of a function now that the market is properly valuing these assets than its underweighting you dont feel like theres a huge amount of risk out there in the market right now theres always risk the question is, does the market properly account for it . I dont know im a quickly, it may be ten years before we talk to you again. Are you a bitcoin believer i have no idea what bitcoin is doing i think its a Fascinating Technology where its going, its impossible to predict. John arnold, laura and john arnold foundation. Really a pleasure to meet you. Thank you so much for coming on cnbc dont let it be a decade. It was a pleasure. Thank you for everything you guys do in houston you just dont talk the talk, you guys walk the walk with the charter schools, with Hurricane Harvey we thank you very much youre a great houstonian. He and his wife, laura, personally, guys, donated millions of dollars to Hurricane Relief outside of the work and donations that the foundation has made as well doing good stuff in houston. Need more guys like you, john arnold, thank you very much. Send it back to you in new jersey. Hacking your heart are pacemakers susceptible to cyber attack a doctor and ceo of a Cyber Security 23irfirm working to prc pacemakers well tell you how serious of an issue this is. Power lunch will be right back your brain is an amazing thing. But as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. Thankfully, the breakthrough in prevagen helps your brain and actually improves memory. The secret is an ingredient originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. The name to remember. So thats the idea. What do you think . Hate to play devils advocate but. I kind of feel like its a game changer. I wouldnt go that far. Are you there . Hes probably on mute. Yeah. Gary wont like it. Why . Because hes gary. phone ringing what . Keep going yeah. laughs voice on phone its not millennial enough. There are a lot of ways to say no. Thank you so much. Thank you so were doing it. Yes we got a yes start saying yes to your companys best ideas. Let us help with money and knowhow, so you can get business done. American express open. Ge moments ago did turn positive while via briefly this is a remarkable turn around from the lows of the session down to a 1. 50 lower than they were power lunch back in two. We know everything in our lives are vulnerable to hacking, phones and even cars what about your pacemakers it could be at risk following updates. How safe is our devices . Lets bring in michael jetsky and our doctor at the university of california when i get pushed notification of a software update, i put it off to the last minute i know there is going to be bugs and a problem with my email, i dont want to deal with it what should people do if they are urged with the software and associated with the pacemaker. Thank you for having me on. My advice is to have a conversation with their doctors and come with a decision best for them whether or not they should have the medical update devices are becoming more complex and connected so having practices and talking to patients are common place. Mike, whats the worst Case Scenario here, these vulnerabilities were found essentially in the research lab. Have we see it happen in the real world outside the Laboratory Setting the fda are not aware of any instances where a pacemaker have been hacked to arm a patient it is unlikely this particular vulnerability has been exploited that way Cyber Security efforts right now is that there are not technology in place in these medical devices to detect if somebody were to hack these things when we are asked the question, has the device ever been hacked in an effort to harm the applicati patient, we dont really know. Is that a concern of yours that somebody could actually take control of one of your patients devices and trying to do that patient harm thats a great question so i do have that concern but there is two important distinctions to talk about one, is there someone intentionally doing that the answer is less likely. There are Sophisticated Network that may do that thats financially motivated. Or terrorism. Absolutely. I am more also concerned of the second scenario where these devices are becoming more and more pcs in your home. They may also be infecting our medical devices and it may not be an intentional harm for the patient but just the random thread scary stuff, guys. Thank you for joining us, we do appreciate it. Now we did reach out and this is what they told us we remain committed to keeping our devices secured and encourage patients to discuss the rich and benefit with their doctors to understand if the updates are right for them President Trump has been busy interviewing fed chair candidates who will wall street think he will pick. Back to brian. Six weeks ago, the water are here, many neighborhoods around like this in houston, the recovery is still away well ask the mayor of whats the next step and how will we prevent it happening again when power lunch returns. A sinkhole opened up under our museum. Eight priceless corvettes had plunged into it. Chubb was there within hours. They helped make sure it was safe. We had everyone we needed to get our museum back up and running, and we opened the next day. Whyour boss . Ork for . Yourself . Your family . Our Financial Advisors are free to realize a plan to fit your familys unique needs. Well listen. Well talk. Well plan. Baird. The strikingly designed impolexus nx turbore. And hybrid. Lease the 2017 nx turbo for 299 a month for 36 months. Experience amazing at your lexus dealer. Feel that . Thats the beat of global markets, the rhythm of the world. But to us, its the pace of tomorrow. With ingenuity, technologies, and markets expertise we create the possible. And when you do that, you dont chase the pace of tomorrow. You set it. Nasdaq. Rewrite tomorrow. Welcome to the second hour of power lunch, i am Michelle Carusocabrera jan jan janet yellen is back at the white house today. Who will President Trump pick . Exclusive results from the nbc survey, you will be surprised. The man behind President Trumps most controversial seas deal it is an exclusive interview, coming up. Second hour of power lunch starts right now checking on the markets right now, we got solid gains across the board, the dow is triple digits, hitting record highs along the way. Synchrony financial and peoples united are leading the way there. Pg e and church and dwight leading. Now, lets go over to brian in houston melissa, thank you very much, a big hour on tap here from the Toyota Center. It is hard to believe it is six weeks since harveys ravage, well revisit six weeks ago when the water rushed through the city well chat with the mayor and the recovery and the work thats still needed to be done. Plus, well have some fun with tillmans new friends, new guys, james harden and chris paul, theyre pretty good for basketball and theyre undefeated and now playing for the same time. We got a show where some guests that make me feel short, thats going to be great everyone taller than you. Brian, thank you very much. First day for the market from general election one of the worst recent in memory and the prospect of tax reform well, that may have reignited this socalled trump trade and the ongoing question wholl lead the fed. Bob pisani is joining us now. You get to go first. Ge is the market because any given day when ge was going up, the market tended to be going up boy, it is a long time since that happens this is a 20 year chart. Ge peeked just as the market peeked in 2000s and the same time peeked in 2000s much worst, it has die ververge the s p. Thats a divergence. There is the s p 500 and General Electric on the right there. Disappointing Earnings Guidance in the last year generally, it is down on the days after that. Thats how disappointing amazon is one of the choice of it. Amazon is usually up a lot more than the overall market. There you see amazon on the last couple of years so i would not pick that. You want a company thats very broad in its investment. Maybe its got its hands in a lot of businesses. The one that i would pick is Berkshire Hathaway nothing matches perfectly when you are dealing with an index and individual stocks. It tends to follow the market carefully overall. Honey well has diversities those are my choices. Whats good for ag age and g for the market was there something similar to gm . Whats good for gm is good for america. You heard of jp morgan i guess what i am getting is, gm got booted from the dow is there any chatter that ge could lose its perks thats 10 closest to the dow. General electric has little influence of the dow jones bob pisani. Thank you President Trump narrowed it down to five Steve Liesman joining us who wall street should lead the fed. You can see here of the blue line who really pick 45 powell. 44 say janet yellen and going in the next, you can see two previous runners, kevin ward is in first place and any director, who was in first place not too long ago, now less than 5 on both count moving along on the screen here, we ask whos your top pick dealing with these important issues yellen wins most of them whos the Economic Growth . John taylor wins the best choice keeping inflation stable at 2 janet yellen, another five categories on the next screen. Janet yellen is the best choice for all of them and dealing for the next financial crisis as well as getting the next regulation Steve Liesman, thank you very much lets get down to brian in houston. Melissa, it is hard to believe that it is six weeks since Hurricane Harvey ravaged houston. Our Contessa Brewer was in houston. Look at this guy, he said he need not need help he turned down the life jacket we went back there this morning to the exact location just off the bayou, you can see thats the streets. The water is gone but the works still node to be done. All homes are abandoned. Water line is clearly visible as well lets talk about how the recoveries are going with houstons governor he is the highest ranking, mr. Turner, thank you very much. Thanks. I got to read the status here we cannot forget about texas 190,000 have 70,000 living with family and friends and 20,000 living in hotels. There is a lot of stats, mayor turner, where do we stand with the recovery right now we are making significant progress it is not going to happen over night. We are working very hard to get the debris up and in front of peoples homes the damage is inside peoples home housing is a number one priority and creating a sense of normalcy and dealing with our infrastructure need. We are making significant progress this was a horrific storm. One of the families that came by and check the house and theyre displaced. Theyre lucky in a position where they got family near by and the water line is visible clearly at about 5 feet. The whole neighbor is in ravage. Do we know how many people are homeless or still displaced . Still 70,000 no, i think there are thousands. We work hard to transition them back to some sort of houses. Thats important the number of people in shelter are less than 500. Most of them have been thankfully leaving shelters. Finding another location where they can be housed without staying in the shelters. Really the oil issue that occupancy was really low it is been really good for the Department Industry and Hotel Industry in houston texas. What was different about this storm is it did not just hit certain neighborhoods and it hit all demographics and a lot of Million Dollar homes destroyed it was really 3 or 4 of houston that had any kind of water. Would you agree with that in. Absolutely. It is a Staggering Number because it is a big number already businesses are back and everything is operating as usual. The big problem right now is you have a lot of people dont know whether to rebuild or bought out. So do you invest back in your home or do you buy another home or whats going to happen . Thats the question we got answers sooner or later. These are issues tillman was generous enough to give us a look if you dont know houston, it is a big city it is like taking philadelphia from the sky and drop philadelphia and it kind of splatters out. It is insane. The area that were hit were ra v ravaged so hard. Mr. Et mmit, the area that outse of houston, people got 10 feet of water absolutely. Do they rebuild theyre thinking even if my Insurance Company pays me out, what if this happens again are there areas we should not rebuild in the answer is yes how do you tell those people i am sorry, you cannot live here anymore. If you cannot get Flood Insurance, that kind of solve the issues there we all have to go back and reexamine we had three our five floods the last years should people be forced to buy Flood Insurance . They have to have Flood Insurance and in an area that you know that homes are going to be wiped out, we got to buy those homes and turn it back to green space. I dont think people who dont live in houston realize that houston is a big slob 640 square miles just for the city of houston alone. All the greens that we have and creeks and bayous, you cannot go far in city without hitting a creek or bayous, when the rain comes it does rise we do have some issues. Lets sell the city. [ laughter ] amazon, jeff bezos, if you are listening, the city is fine and everything is fine jeff bezos is looking for a second headquarter and hes from houston. Can you guys put a competitive package . The recovery has been amazing for the city and county, we work well with one another. Thats one thing tl division does not exist the county and the county judge and i have worked very well. The recovery have been amazing debris we are moving the first wave of debris up and thats done in both areas of record times thats some good news should amazon come here though absolutely. Why this is a city for number one of number one of capitol in the world and Largest Health and medical in the world this is the city of the last 25 years has moved and gone through the next level if you want to know where the United States is going to be, 25 or 30 years from now, take a look at where the city is now. We are the most diverse city of the United States america, 25 years that was not the case. The youth that millennial, we are second to la, okay when you combine the city with the county, you cannot beat that combination. Well, you got a lot of smart guys like tillman and john arnold that live them. Are you going to consult them . Thats why we are sitting with them right now. I thought you are just being nice the bottom line is for this area is the cando attitude. We can do anything we put our minds to and thats what the people need to know. Thats what mr. Bezos need to know we go big or go home. Mayor turner, thank you very much coming up in a few minutes, we are hoping some of these guys down here are going to pay us a little visit back to you. Here is whats coming up, President Trump cancelled some but not all of his over sea deals. Well talk to the men behind what may have been the most controversial of those projects. Congress just took a big step down the road to tax reform or tax cuts is the trump trade back on much more from Brian Tillman in houston, thats all straight ahead on power lunch. [phone ring] hello. Hi, its anne from edward jones. Im glad i caught you. Well im just leaving the office so for once ive got plenty of time. Whats going on . So those financial regulations being talked about . They could affect your accounts, so lets get together and talk, and make sure everythings clear. Thanks. Yeah. That would be great. Weve grown to over 900 billion in assets under care. By being proactive, not reactive. Its how edward jones makes sense of investing. Flexshares etfs are built around the Way Investors think. With objectives like building capital for the future, managing Portfolio Risk and liquidity and generating income. Thats real etf innovation. Flexshares. Built by investors, for investors. Before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. Wantsure ack . Alright, looks like weve got chips, popcorn, pretzels . Pretzels plain, sourdough, spicy, sesame, honey mustard, chocolate covered, Peanut Butter filled, this ones in german, it says, reindfleisch . Plain. Great. So what are we gonna watch . Oh show me fall tv. Check out the best of the best handpicked fall shows on xfinity x1, online, and the Xfinity Stream app. Thirsty . Welcome back to power lunch. Will muellers investigate passed the foreign deals mr. Trump also held a big conference in new york city at the trump tower. Trump invests in georgia was not a licensing agreement. He paid a Million Dollars and promised 12 of revenue of every condo sold he was very excited about it i want to thank our new friend, partner, license to licensee, whatever we want to call it. Well have a lot of fun and success together four years later, mr. Trump gets elected as president and he ends the deal of 2017. The tower never gets built and it still haunts the president. Due to t joining us now, is our robert frank and the two architects of the trump, george deal, good to have you here, gentlemen thank you for having me there is as couple of questions that i have for this deal that have not been answered did he ever give it back when the deal ended [ inaudible i think there was reported, no the front fee was not refundable licensing deals include fee payments and fee payments are not refundable is there any chance down the road if and when the building is built that he can come back in and that can be renamed the trump tower and he could get the percentage of the revenues that was in that original contract . Can this be restarted again . It is difficult to say right now because as you know we stopped our relationship and now we are starting a new tower which i want to announce today with a new brand ta it is a silk tower and it is my company, the silk road group and it will have my name we signed with the private equity form and we are ready to start with the new tower would you like mr. Trump to come in once hes no longer in office you know it is difficult to say right now but i will be happy to have wohim again. Have you heard from mr. Mueller or any investigative body in the u. S. , have any of them contacted you about this deal and about mr. Trump, will you be called to testify at any point . No, we have not heard from anybody. Except some of the media obviously have been reporting and looking into this deal and i think it is the wrong thing to say. Calling someone to look at the deal which simplizes the deal and it was a mistake it was clearly not good for us of anybody dealing with mr. Trump in the past. Why it is a why was it not a good deal with him it was not reported in the media. I dont think it is the right thing to do. Clearly, they dont know what the deal is about. Why did they tell you they were cancelling it and do you think it was the right thing for them to do to cancel it . Were you angry . Was that upsetting to you it is difficult to say until it was a new reality mr. Trump became president , it was different situation and we agree to stop this contract and i believe it was of the tower. It was the ability to care about relationship of american and georgia which is a much more higher level in the building, right . So you think youre building would have hurt that difficult to say. I am sure right now what we are doing and we are spending around 100 million in the tower which is exactly same architecture concept like we did with mr. Trump. Without the trump name at the top. We did it exactly and when it was approved to mr. Trump in 2012 when he visits the georgia. I believe it is super successful right anybody is going to read the new yorker article it is very long. One of the questions that raises that is it possible that the russians have compromised on donald trump because he got involved in the steel and his kazakhstan money was involved and because of the working together of the intelligence agencies in that part of the world. Do you think they would have anything on him . First of all, i hopeless people read the new york article because it is untrue i would start from one really important point when we are reporting something, we have to be honest about facts. The article, we neglected the facts and it gives a bad reporting. It is important for us to understand what the relationship is and trumps organization. There is no relationship the bta bank ended in 2008 bta got nationalized in 2009 the deal of mr. Trump signed in 2011 but concerns of mr. Trumps reputation do you think are unfounded let me tell you what Trump Organization is . It took a lot of team to do Due Diligence of three or four months we are ready to move forward licensing and it took about 18 months absolutely. A long time all right, gentlemen russia may have been finaled through kazakhstan, sensational news, thats what people are looking for. Thats why we are here today because cnbc report facts all the time thanks very much for that thank you for coming on we appreciate it thank you very much melissa, back to you. Anyone who says the market is priced in tax cuts may have forgotten to tell the market the dow of triple digits as Congress Gets one step cser loto tax reform is there a limit to this bull run . Well be right back. Stay with me, mr. Parker. When a critical patient is far from the hospital, the hospital must come to the patient. Stay with me, mr. Parker. The at t network is helping First Responders connect with medical teams in near real time. Stay with me, mr. Parker. Saving time when it matters most. Stay with me, mrs. Parker. Thats the power of and. Yeah, i got some financialbody guidance a while ago. Howd that go . He kept spelling my name with an i but its bryan with a y. yeah, since birth. That drives me crazy. Yes. Its on all your email. Yes. They should know this . Yeah. The guy was my brotherinlaw. Thats ridiculous. Well, i happen to know some people. Do they listen . What . Theyre amazing listeners. Nice. Guidance from professionals who take their time to get to know you. Welcome back to power lunch. The walking dead launching on sunday ahead expected of strong ratings. Worth noting that cbs, those shares are more than 2 today. Media stocks benefiting from anticipated tax reform as well as viacom striking a deal on tuesday. Power lunch is back in twominutes. The friends, the independence. And since we planned for it, that student debt is the one experience, im glad shell miss when you have the right Financial Advisor, life can be brilliant. Ameriprise but we should be seeing ymore range of motion. , im fine. Okay, well lets see you get up from the couch. Im sorry, what . Grandpa come. At cognizant, were uniting doctors, insurers and patients on a collaborative care platform, making it easier to do whats best for everyones health, every step of the way. You may need more physical therapy. Ugh. Am i covered for that . Yep. Look. Grandpa catch grandpa duck woah ha there you go grandpa. Keep doing that. Get ready, because were helping leading companies see it and see it throughwith digital. Well come back will it hold on well see, they look pretty good right now the budget passed in the senate is the trump trade back in play on the prospect now, maybe getting stronger of major tax cuts lets bring in Richard Weiss and peter costa, cnbcs contributor and empire of execution residence. Richard, you are cautious and you think the market are thats right, well, one thing thats bullying stocks currently is corporate earnings and we have a nice flaw for equities but looking out for longer term, you have weak evaluation metrics and you have a rising Interest Rate on environment and tight tighter Monetary Policy. And so we do not see the fuel that will ignite corporate earnings next year as opposed to this year. We are putting our money elsewhe elsewhere. Elsewhere meaning like . Over seas equities which we have done very well this year and large part due to the dollars declined which is another troubling Economic Indicator and also market new and long and short portfolios where we are taking advantage of the incredible disperging, tech stock is up 30 and energy stock is down 10 and give or take, you have a 40 ban at value. Peter, richard is worried about rising Interest Rates and slow Economic Growth he seems to be worried of the dollar, how worried are you . Well, if you ask me, tyler, eight months ago, i would agreeing with him 100 , over the summer of the last couple of months, i have been watching the in flows into equities and it is not, theyre not price equities. Theyre buying an overall basket of equities. Theyre not looking at the under line stocks. It is money moving to a place of other place to go and it is not doing as a discretionary thing the way theyre setting it up, theyre going to etfs and buying everything in this basket and there is not a pricing of mechanism inside the basket. I think the money is going to continue to flow in. I mean we weyou are talkingu the trump trade. Thats still on. After last nights vote, you do have a lot of money trying to catch up some of the money missed moving from august to now i think thats what you are saying sarah huck l lebee sanders is telling us President Trump considering having john taylor and powell both on the fed again, both cases expect Interest Rates to rise perhaps one more so like chairman yellen and the other. It does not change the overall outlook. There is tight ermon teer monety to come. So our outlook remains the same in that regard richard, thank you very much. Peter costa. Thank you to you as well thank you lets get to brian in houston. Brian. Yes, melissa, thank you very much we had an interesting show, i hope and i think so far. A lot to do, we got tillman, thank you again for having us here it is a special treat and a lot of insights and a lot of recovery stories going on. It is been great when you guys are here, we get a lot done you are able to see how houston is back. Is it back . It is do you have people that are still out of their homes and moving into apartments and hotels now but, i can tell you this my revenue is up in houston right now and thats exactly what i said what happened you are bringing in workers and people in hotels and restaurants and the world is going well right now. The world is going well. I think you know we gave you a new nick name. It is true. I mean, again if you are just go joining us, many hotels and golden casinos and now the rockets. You are connected all over the country. Lets move past houston. How is the United States, the American Economy is doing right now. Do you see that reflected in the Golden Nugget in lake charles . I have five casinos that are in total different parts of the country. Nevada to the south and lake charles and biloxi our business is better than ever where does that stand i dont know how good that is. Thats really good. If you are in the Restaurant Industry and you are running 3 positive comp for this month is that sales thats sales. I am doing 103 instead of 100 compared to last year, okay . When you think that august was so screwed up. September was screwed up because of the hurricanes and august and here we are in october, it is our first clean month and business is good everywhere. Our opening gain here is up hundreds of thousands of dollars and ticket revenue the consumer, we keep waiting for it to crash with the market, i dont think they are you know because it is the big question i think that people say the stock market are record highs but a lot of americans dont own stocks does the stock market have any correlation of the quote on quote, real economy. Everybody invests in the stock market today if you are somebody that makes 60,000 a year, you find a way to put a thousand dollars in the stock market and your 401k or whatever you go out and spend money in the restaurant and playing slot machines you are not a stock guy it is interesting. You were chattering. You thought it may look attractive in this price why . Because you got a new ceo cleaning it up i was public for 20 years, okay . Of course, i was the only ceo ever every now you want to clean up and look into the future and you make sure that all the bad is bad. Do you think it is flustered . I think he tried to flush jeff with it i told you i was going to send you a g5 as a backup. United worked hopefully, they had a backup jet. Lets talk about policy anies stuff thats going on. If Congress Just gets one thing done, what would it be from a business perspective Corporate Tax reform. If you have Corporate Tax reform, i would get to take that money and create new jobs. When you build New Buildings and restaurants and hotels and casinos. You with putting thousands of people to work and all suppliers have jobs. Thats what makes capitalism works. I am giving it to the government to spend you noknow the criticism you are a private company so you can do whatever you want public companies, you know what theyll do stock buy backs and dividend increases and they wont hire or buy stuff. How do we know the Tillman Fertitta of the world and buying stuff and adding jobs for people bringing money back from china and where ever else, i have always said let the government do whatever they want to do but say you cannot use it for a stock buy back, make you spend money and use it on cap x and create more jobs for the company. The governor love to dictate to us, they can dictate to us, well let you bring money back with some conditions attached with some conditions. By the way, january 3rd, you are finished wrapping and not quite done two more weeks. You are close in our filming, can you give us a tease, dont give it away but whats awesome about season three you get to bring in thats whapi whats happening in the world. Bring in companies that really needed work because their business got so hurt oh, this is it is everything california is that a preview of a meal thats a grass fed piece of cattle everybody wants organic today. I am going to get some animal activists after me after that comment there. Thatdelicious. Thank you very much you are not going anywhere we still have one more segment hopefully, the bearded one is going to come up and pay us a visit, guys. It will be really cool well be waiting. Jp morgan chase, rallying on tax reform should you bet big on the big banks . Well be right back. Im an outdoorsman. So ive asked chase sapphire reserve cardmembers to find my next vacation. Chile, whats going on . Im at the el tatio geysers. Geezer. Geyser. Geezer. Geyser. Enough. Geezer. Whoaa, wooooo. Dude, be careful. I think you should come camping. Why would i camp in the atacama desert . Oh. 3x points on travel and restaurants on every continent. Sapphire reserve, from chase. Make more of whats yours. Steve liesman is standing by powell is under consideration of the fed, dont know if it is vice or vice chair Sarah Huckabee sanders was asked about that here is what she said. He will have been announcement of that in the coming days. It could be taylor or powell. Hes the supposed front runner the president did not say where he would put each one of them. Michelle . All right thats all clear now. You got it . [ laughter ] it is going to be powell or taylor it could still be yellen. And kevin ward is still under consideration and as well as gary cohn. Thank you you got it lets bring in the trading nation team, kathy lee is with bk management chad, i will go to you, is it an all integrate story . When the ten years start, you saw a real rally that was out performance relative to the s p, you have to keep in mind that you do also improve fundamentals on the economy and consumers as well as Business Trends on lending are quite robust and as well, you can have deregulation where you can get a capitol pay back to shareholders Going Forward the next six to nine months, we do believe of negative head wins as a Federal Reserve starts to raise Interest Rates, we believe theyll raise it three to four times kathy, whats your outlook of Interest Rates because it is important part of this bank story . I think the scope of the ten years at at least 2. 4 i dont think the rally and financial is just an Interest Rate story there is a strong Risk Appetite out there and tax reform as well as the Regulatory Environment that could come is conducive i think we have a little more room to go we are a ten year highs, that can be a head wind and the fed chair could put a damp in it i think in the long run, we may see new highs in the index before we see any type of meaningful correction. Kathy and chad, thank you for your time. For more information, head to our website. Lets head down to houston, hi brian. Hey tyler, how are yall doing back there coming up, sue, james harden, you may know him from the houston rockets. We are waiting for him to come up to talk about basketball and maybe the anthem controversy as well who knows anything can happen from the larger than life texas size power lun size power lunch. Coming up in a couple of minutes right after this the latest from trading nation and a from our sponsor. Unless you are an extremely short term trader, it is usually best to sell or buying the last hour of trading. Thats when volatility tends to be highest the spread is between the bid and the prices increase. Thats never a Good Environment to buy yourself. Give up, skeletor youre finished curse you, heman, you interfering imbecile give us one good reason we shouldnt vanquish you to another dimension ok, guys, hear me out. Switching to geico could save you. Hundreds on Car Insurance. Huh, he does make a point. I do like to save money. Catch you on the flip, suckas geico. Because saving fifteen percent or more on Car Insurance is always a great answer. Time for street take. The Analysts Recommendations on the stock you need to know about. We start off with tesla. 170 price tag even true long believers, the analyst writes, will lose patience the analysts also saying the company will run through even more cash, with all the new giga factories planned. Right now the stock, quote, has more questions than answers. Lot of questions about the second stock, too, chipotle. Rbc Capital Markets cutting price targets on chipotle to 340 bucks to 400. Remember how the new product, queso, was supposed to be the savior for sales this analyst not so convinced. After the higher labor cost, elevated avocado costs weve been talking about for ages. Chipot chipotle remember how he hated the word, queso . Just spanish for cheese. Anyway, third stock, celgene, to a neutral after the Company Announced the failure of its drug to treat Crohns Disease. Add to the concerns about revilimid. Other key drugs. Analysts lowering forecasts for longterm growth 2020 goals of 21 billion in revenue looks s harder to achi. Price target down to 136. Final stock, lululemon, upgrading the stock to a buy, listing ten reasons to buy the stock. Some of the standouts they mentioned in the top ten, tops turned positive showing lulu isnt just a bottoms brand. I always thought it was a bottoms brand. Quote, bras take the brand to a whole new level. He wrote that. What you do when you cover lulu. Well head back to Brian Sullivan and fertitta in houston right after this quick break im living that yacht life, life, life top speed fifty knots life on the caribbean seas its a champagne and models potpourri on my yacht made of cuban mahogany, gany, gany, gany watch this dont get mad bell mnemonic get e trade and get invested right in the heart of the was in his financial crisis, and saw his portfolio drop by double digits. It really scared him out of the markets. His advisor ran the numbers and showed that he wouldnt be able to retire until he was 68. The client realized, i need to get back into the markets i need to get back on track with my plan. The Financial Advisor was able to work with this client. Hes now on track to retire when hes 65. Having someone coach you through it is really the value of a Financial Advisor. Throughout my career, ive been fortunate enough to travel to many interesting places. Ive always wanted to create those experiences for others. With my advisors help along the way, its finally my turn to be the host. When you have the right Financial Advisor, life can be brilliant. Ameriprise market flash here, watching shares of bitcoin, had been i believe above 6,000. It is nearing it right now 5,965, a new record high it did set in todays session remember we saw earlier this week, it was down 9 about concerns of initial coin offerings. Its more than rebounded since those lows those lows again, up about 5 right now, 5,965 on this cryptocurrency. Despite all the stuff a jamie dimon said about it. Exactly. Lets head back out to brian in houston bri . Reporter thanks, guys, appreciate it. Reallyrocket rockets allaround basketball player, and new owner, by the way, Tilman Fertitta. Thanks for having me. I know you guys are practicing we dragged you up here whats it like to have Tilman Fertitta what did you think when he stormed the court after you won your opener with golden state . His energy excites our team, it fits our team well. I mean, hes the man, you know, hes excited to have, obviously us were excite ed to have h for our boss. What did you think of when the rockets are being sold, tilman, i heard of him how much the value of the rockets increases the value of the players. Yes yes. The most money ever spent for nba team hes a businessman, you know, hopefully these next few years ill learn a lot from him and, you know, well see where it goes you dont realize how lucky i am i truly have the best player in the nba. Okay and not only is he a great player, great rebounder, great shooter, assists, he broke a record last year that nobody had ever done before besides that, he is the leader this guy leads these guys. This guy is like a coach out there. This guy works with us tells us who we should look at in free agency i couldnt do this without this guy right here and im the lucky one to have a love fest. Thats what its about. We better be. We better be. Lets get some heat okay how did it come about . I read the story that how you and chris paul talked and came together and i dont know, did you see Michael Jordans comments recently, james no, i havent. A couple days ago, he basically said these, quote, superteams, rockets certainly one of them, warriors, rockets, maybe the celtics and cavaliers. Youre going to have them and 26 or 28, quote, garbage teams. Thats from mike do the fans have to worry about powerhouses . I think its always been like that, though i think in the lakers era, the boston era, all those so obviously, you know, theres a lot of really good a couple really good teams and then, you know, whatever thats just the way the nba is as you build and you draft and you get better as time goes on, your team gets better. You know, and so it is what it is for us, im happy to have the players that we have the coaching staff, the organization and obviously, you know, the owner. You know, i couldnt be more happier youre watching whats happening in football and the football ratings are down. Yeah. You can attribute that to a lot of things, but certainly the anthem thing is a part of it nba ratings are up i dont know if you heard this, 53 in the home doubleheader Season Opener from last year wow i mean, thats in tv, james, thats unheard of. I mean, thats unbelievable. Do you like the fact the nba has that rule or limits your flexibility as a player to make a statement if you wanted to you know what, i think each individual has their own opinion and their freedom of speech and so, you know, for myself and i think even for chris and our leaders, we dont want to draw too much attention to our team, obviously, well speak, say what we have to say to get our message across but for our team and organization, well be together an whatever we do, whatever we decide to do and move forward from there. I dont know if you know this, james, youre sitting next to the only undefeated nba never lost a game as an owner. Invited mark cuban to come on. Mark might be watching mark, you could have been here thanks for joining us. With us, of course. Of course thank you so much, james good luck. Thank you, appreciate you guys. Have a great season appreciate you guys. Tilman, by the way, want to give it to your friend, giving to Hurricane Relief thanks for watching closing bell starts right now. The cash flow for 2017 is horrible we have to tighten the belt, we have to lead by example. I think our power Business Team s. Ssed the market

© 2024 Vimarsana

vimarsana.com © 2020. All Rights Reserved.