Transcripts For CNBC Power Lunch 20160421

Regulators before its put out for Public Comment and adopted. Now this is a proposal from 2011. The rule being proposed today mandated by doddfrank and deals with incentivebased compensation at a wide range of financial institutions. Here are the key elements of this reproposal. First of all, it mandates that 60 of incentive pay for Senior Executives and significant risk tears at firms with more than 250 billion in assets, think the big wall street banks, this pay be paid out over four years. These executives at firms with 5 50 it 250 billion in assets have to wait three years. Wall street firms defer this pay for three years. But for a Smaller Group of executives. Second, this new proposal includes claw backs at firms with more than 50 billion in assets, Senior Executives and risk takers will be subject to claw backs looking back seven years if they engage in conduct including misconduct, fraud, or financial misrepresentation. Lastly, were with firms with over 1 billion in assets they need to retain records on compensation for up to seven years. 278 pages, this will discourage excessive risk taking. It applies to a wide range of firms, bank, broker dealers, Asset Managers and investment advisors. The common period expected to close in mid july f this rule is adopted, the firms would have 18 months to comply. Tyler, back to you. Mary, thank you very much. Lets hear now from the retired massachusetts congressman former chairman of the Financial Services committee barney frank. His name son the doddfrank bill. He serve third down 2 years on capitol hill. He was a member of the chair financial committee. Larry kudlow is with us. I think folks on this debate particularly, all i have to do is strike a match because i think the gasoline is there and ready to lift off. Congressman frank, how do you feel about these new proposed regulations . Their sweep, scope, what they do. Are they the right medicine for a problem that demands a cure . I think there is a problem that demands a cure. We did require this. We should be very clear. There is separate from the level. And we were very creative when we did the bill. It wasnt up to us, the government, to tell people how much to pay people. We did have say on pay. We do think the shareholders should have to vote on it. People can pay as much as they want. What the general sense was, Warren Buffett is one of the ones that argued this and others, the incentive structure is wrong. The way it worked, if people made a bet and it paid off in short term, they made their money and if it turned sour later, they were okay. Or if they made a bet and went bad, they didnt have any penalty. Thats where the clawbacks come n im very much in favor of changing the incentives. Again, were not limiting the amount that any Company Wants to pay anybody. Thats a separate issue. I do want to say that you take a risk. You should be fully able to benefit if the risk pays off. But also fully subject to the penalty if it doesnt. Now as to the exact specifics, i havent seen them. It moves in the direction that we wanted them to move. Larry . Look, with respect, i dont agree with barney on. This theyre not stipulating the level of pay. Theyre putting restrictions on incentive pay. But industry practices settled most of this issue. I think thats where it should be settled, not by government regulators. They said three years and then the rest of it is bonus. That is pretty good practice. Thats been around for a long time. Im fine with. That what im not fine with is this idea, first of all, if you hurt an institution you can get clawbacks. What does that mean . Is that the actual terminology . Thats what i read in newspapers. The other thing is financial restatement automatically puts new the dog house. Whats wrong with financial restatements . Financial restatements can come for a million different reasons. Theyre probably very good for shareholders and investors anyway to make the thing more accurate. To me this is regulation gone run amok as former Supreme Court judge Anthony Scalia put it this is the regulatory Industrial Complex at its worst. Let me ask one question if i might, who would determine whether an individuals action had hurt a company . Who would determine whether i would be very surprised if the word hurt was in the rule. Lets not hold the regulators accountable for journalistic shorthanded. Im certain that they didnt use the word hurt f they did, they shouldnt have. It would be talking about if losses were incurred as a result of this. Let me make a couple points. First of all, i know that industry facts have changed. But they changed substantially after we began to do this with the law. That is some Companies May have done this. But the finding at the time of everybody looked in where it was, that industry practice did not guard against short term gain and ignoring a longer term loss. That is the three years. I dont think three years was the rule. I think that was in anticipation of something coming forward. As to clawbacks, yeah, if you have done something all we wanted for the incentive is twoway. We dont want it to be heads, i win, tails i break even. Then you flip the coin too often. If the decision you made pays off, you get paid. They dont have any trouble determine wlg it paid off. But if the decision you make causes a financial loss, not a hurt, then you should have to give back some. All right. Barney, look. Financial losses occur in any industry. You know that. I mean thats the nature of the market system. Youre going to have good years and youre going to have bad years. And i think one of the biggest problems i have with this whole story is where is the due process . Here is the government regula regulatories coming through. But there say punishment here which is really judgmentmental. Heres the deal. What i want is, barney, just help me with this seriously. I want to but you wont let me. Due process, where is the due process come in . I dont want to criminalize regulations, barney. I dont want to criminalize losses. That stuff happens in the normal course. I doubt very much this f. This is a criminal penalty. Lets start with that. This would have to do with civil regulation. I dont think the agencies, were not talking the Justice Department n our legislation, by the way, we were not empowered by congressional jurisdiction. This is a civil recovery. Secondly, how do you determine . You make a good point. Sometimes losses will occur. But you know what . Sometimes gains will occur because of the general market. The problem we have today is that if you happen to be there and the tide comes in and it lifts your boat, you make money. You dont have to show that was you who did it. I would say, how do you term whether the particular decision caused the problem or not . By the same way that people now determine whether it causes a gain or not. All i swant fwant is for the st to be the same. Who would determine . The regulator would. Which regulators . There are six agencies. The primary regulator for that particular institution. It could be the federal reserve, control of the currency. They would deal with joint things. Youre arguing that its so hard to tell who caused it but apparently its very easy to tell who caused the gain. People get the gains and somehow thats easy to determine and people benefit if there is just a general increase but somehow they cant lose a penny. I think thats not up to the government. I think thats up to the individual institution. Heres why its up to the government. Hang on one second. Im concerned about this business of due process and blaming and seven year callbacks. Barney, i will give you this one. The government banks would be restricted because theyre government banks. Im going to make the argument that now aday thez pay back their bailout money. These are private shareholder owned institutions. Theres a difference between fannie, freddie and jp morgan. Let me respond. The reason that government steps in is were again, were not trying to penalize how much people get paid. It was the overwhelming consensus which i shared that perverse incentive contributed to excessive risk taking. Then when people benefit this they take a risk but make no penalty if the risk goes bad. Then the market isnt really working. You have rigged it and you have given people an incentive to take more risks. And all were saying is the government isnt saying how much or whatever. What the government is saying is even handed. We dont want the incentive structure to be skew sod that people are rewarded for taking risks without the responsibility if the risk goes bad. And thats a Public Sector responsibility. I hear congressman franks point. I hear the point. Its a legitimate point the all ill say is my belief, those decisions about whos to blame, risk reward, profits and losses, those are ultimately private Sector Companies decisions. Thats what i believe. The government shouldnt be in that game with the exception of fannie and freddie. Every agency has a due process proceeding. These are not criminal. You have a right to appeal, you have a right to counsel. You have toad mo administer to law. A skewed insentive structure contributed to excessive risk taking. There is a comment period, i believe until july 22 nld. Gentlemen, we have to leave it here. We have news. Gentlemen, thank you very much. This is a productive discussion. Congressman, thank you. To julia. The ap has told us that the ap confirmed that prince died in his home in minneapolis. The artist known as prince, he was an unpronounceable symbol. This was first reported this morning. And were just looking at some his top selling albums. He was a Massive Force in music. Dead at age 57. Looking at neilson, some of the biggest albums include purple rain with 2. 5 albums sold in 1984. 1992, his love symbol album sold over a million copies. So he really vaulted to super stardom in 1984 and he just had a number of massive hits since then. Just looking at all of these different things, grammy awards, golden globe awards. So just really a Massive Force here even in an Academy Award in 1948 for purple rain. Julia, just an incredibly talented musician, songwriter, even actor as well. Julia, thank you very much. Were actually going to bring on john nagarian right now. Many of you may not realize that john grouted with prince from central high school, same year, same class. You knew each other a little bit. Yeah. I played football with his brother. One of the most amazing talented musicians of his era. Can you give us a personal anecdote . Lovely guy. He used to play at we would have assemblies. And at those assemblies, prince would get up there and play anticipate people were mesmerized by him. Even in high school. Yep. He could play like seven or eight instruments. And he was just a phenomenal athlete as well and loved to play basketball. But he was only about 54. Maybe 52. He was a tiny fellow. But his brother was about 64, 65. The brother played bnl. Dwayne, im sorry. We all ran into celebrities in our lives n this job you get to meet them sometimes or bounce into them at conferences, whatever. You meet all the celebrities and okay, there is matt damon. Thats pretty cool. Ive never been, you know, it tauz a lot to shut me up. And i was completely i saw prince in california once and he walked into a restaurant. Kind of stood there. Knew everyone was looking at him. Kind of did a little turn and then walked out. Nobody because he was kind of reclusive, right . Very much. So. That was the most i mean everybody, when he walked in the room, he may have been 54 but he was 8 feet tall when he came in. Pete was in purple rain. I tried not to go into that because of the hair situation. He was working a fog machine he was part of the audience because they shot that at first avenue at least parts of it, first avenue is a big club in minneapolis. They shot it. There. He stayed as a resident of minneapolis for much if not all of his life. Absolutely. Jimmy jam, terry lewis, a couple other big friends. They did Janet Jacksons control and really brought her back to the forefront. He had apparently, according to the reports, had ill health in recent weeks. And had canceled a couple concerts. He canceled a couple concert dates but it was not disclosed at that time whether he was in any kind he was hospitalized on friday on the way back home from a show. We have more from julia. Just to talk a little bit about the success of purple rain, the soundtrack album spent 24 weeks atopt billboard charts. He was a massive talent. He had seven grammy awards. He had two Golden Globes as well as an Academy Award. So a talent across all the different areas. And he also did soundtracks for a number of movies including the 1989 sound truck to batman and he toured extensively. I once saw him on tour. He was phenomenal. Julia, not afraid of a fight, too. You have to remember whether prince changed his name to the symbol, it was a message to the record industry, screw you. Youve got my name. But now im not that name anymore. Im this thing. And did he that as large part, right, for a contractual fight. This is a guy that is not afraid to take on a multibillion dollar business. Yep. And he had that he had that deal at the rio hotel where he would show up for his concerts when he felt like it. In other words, the concert had a set time. Midnight, for instance, but it would start whenever prince showed up. That was the deal. Believe it or not, that was exceedingly popular. People couldnt get tickets for it. Julia . Yeah, he was a big proponent of artistic freedom. And he released a number of albums in quick succession in order to get out of the contract with Warner Brothers. And then to fulfill his obligation to them. Then he separated with Warner Brothers and then he released this album called emancipation, a triple disk album and that was under his own label. That was platinum. And had a number of big cover songs. It was really interesting he wanted to go his own way. He found a way to do that with his own name and label. I liked a lot of princes music. But im certainly no expert on it, john. I remember being struck on any occasion when i would see him perform. He was a guitar virtuoso. He was not a great composer and front man and singer, he could play the guitar. Yeah. And on most of the instruments its my understanding that he was self taught. Most of the instruments. The only one i ever heard he took lessons on were the drums. But Everything Else virtually from horns to piano and guitar, he learned on his own. Im just counting the number of albums prince is credited with having done. 39 albums. Four live albums. I mean this is a prolific career that were talking about. Truly memorable super bowl performance. David bowie, merle haggard, fight dog, i mean prince. This is not a good year for legendary musicians. No. And, you know, they burn twice as bright and sometimes they only are around half as long. John, we appreciate you coming on with some personal anecdotes. Graduated with prince from central high school. Yep. And first avenue legend airy club, the jayhawks. Yes, sir. Great city. Thank you, john. All right, john, thank you very much. Were going tie a break or move on . Were going to take a quick break. Welcome back to power lunch. Fractional moves on the major indecembers. Health care, discretion aries, energy all in the green. Take a look at shares of apple moving back into bear market territory. We have chip guidance from qual come last night. Another data point from the supplier to apple which indicates that iphone units could be weak when apple reports on tuesday. A fair price, quality service, and that in a new house, you probably dont share the same tastes as the previous owner. [ dolphin chatters ] so when you need a little house painting or a complete remodel, well help you get the job done right, guaranteed. Get started today at angies list, because your home is where our heart is. Lawelcome back to power lunch. Not Much Movement on the government market wlachlt is interesting is were seeing money being pulled out of the safety yield play as utilities. The gold trade is holding steady. Down by just. 2 . As for the rest of the metals complex, a mixed trade. Small movement all throughout. Copper is up by. 5 . Pe laid y palladium is up 2 . Lets get to Rick Santelli with a bond report. Rates are firm. Commodities are firm. Lots of things are firm. Now way want to firmly watch how they affect the equity markets. Clearly aggressive. If you look at a year to date chart, we should add a technician, that double bottom, treasuries like double tops and double bottoms. Pay attention. Lets look at two day booms. Its note worthy here is yesterday pretty much most of the activity had already quieted down and closed by time we started to really give it a test for the upper 180s. Look at how it caught up today. This is very key wlochlt is leading who . Might be changing on relative value trade. And there is only one chart everyone is looking at. What goes up must come down. Its pretty much right back to where it started. Back to you. All right. Thank you very much. If youre just joining us, the news broke moments ago, musician prince has died. 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Certainly thats what the Syrian People want. Iran denouncing as theft a Supreme Court ruling that almost 2 billion in frozen iranian as sets be paid to american familiar lives those killed in the 1983 bombing of a Marine Barracks in beirut. An iranian Spokesman Says the ruling is like stealing irans money. The 12 Syrian Refugees that pope frances brought to rome are set unwilling. The vatican says the three families will be supported about it holy sea and cared for initially by an italian charity. And the National Spelling bee is getting harder, if you can believe that. After the competition ended in a tie, the past two years, championship rounds will last longer and the words will get harder. I dont know how thats possible having covered the National Spelling bee. Youll have a lot of stressed out kids and parents. Thats the cnbc news update. Thank you very much. Lets go back to julia. For those just joining us, prince died at age 57 in his paisley park, minnesota, home this morning. Now for some background. Last week he was rushed to the hospital after his plane made an Emergency Landing in illinois and he canceled a concert due to illness. Now over more than 35year career, prince released 39 albums. He won seven grammys. He was nominated for 30 grammys. He won two Golden Globes. And he won one oscar for purple rain. Purple rain is the film and soundtrack that really catapulted him to massive success. The soundtrack album spent 24 weeks atop the charts and sold over 13 million copies. That came out in 1984 and that was the year that prince became a Massive Force many n. Music. He had 40 top 100 hits including five number ones. So a massive fan base out there that is saddened by his loss at age 57. Tyler . Ill pick it up from there, thank you very much. Lets be joined now by alex gale, Senior Editor of billboard magazine joining us by phone. Alex, how would you describe princes impact on the music business . In terms of the business, just in terms of every single artist, there is really before prince and after prince. Hes just one of those once in a lifetime mt. Rushmore type of figures. So you really cant find someone that hasnt been influenced by him. I mean purple rain, one of the defining am bums of the 80s and his sound and how emerged funk and rock which seemed very separate things, he brought them together in a way that just crossed lines, racial lines. He also blurred gender lines and moved that conversation forward. Its just really, honestly, difficult to put into words. Yeah. Were showing video, alex. I dont know if can you see it with tom petty. He played rock, pop, jazz, funk, piano, you know, a contributor here on cnbc went to high school with him. He said he could play seven or eight different instruments. When we look at his battle with the record industry in the 2000s, did he accomplish the change he sought out to . He did in the end. There was an interview he did in 2014 where he said he was putting out albums on his own terms. It was a difficult battle. He gave up his name. Sow was really in terms of artist, there has always been artists fighting the label system. He probably did it in the most high profile way that anyone has ever done it before. I think a lot of artists have a lot more power now and i think they can thank prince for that. Alex, hold on just a moment. Were getting in a statement from princes publicist regarding his death. Here it is. It is with profound sadness im confirming the legend airy oon conic performer prince rogers knellson has died at his paisley park residence this morning at the age of 57. There is no cause of death yet. When you see artists these days battling streaming, would they be doing this had it not been for prince standing up to the record system, you know, back in the 90s . You know, artists have been battling them. I just think that prince, if you see the way taylor swift has done it, she is someone on princes im not saying shes on princes level because no one is, but in terms of an artist that big to take that boefld a stance. Prince is one of the first ones and most prominent ones to do that. So i do think the battle with streaming has inspired. That can you battle labels and win. And, you know, nowadays, artists are much more adamant about keeping their control. And alex, this is also a guy who took on the sensors. I mean, you look at some of his works, darling nicky and some of the other even some of the titles of the songs would not be safe for work. He didnt care. He didnt give a you know what . He went after it and said im going to put out the songs and the lyrics and titles that i want and they sold and he changed the game that way, too. Absolutely. I mean, he was very the songs were extremely controversial. He was criticized by a lot of christian groups, by parents groups, censors from all over. And he absolutely battled them and won. I mean, if you look at the way the culture moved, you know, hugely controversial. He would step between gender lines, racial lines, between genre lines of music. Really just charted his own path in a way that very, very few other artists have. Im going to break in here, if i might. We interrupt this conversation to show you a live picture of princes residence at paisley park. Paisley park studios in minnesota. The minneapolis area. Cars driving by. There is where earlier today death was reported at those residences and studios and it turned out that it was, indeed, the artist prince who passed away at the age of 57. No cause of death has been announced just yet. Though as weve been reported, he had a couple bouts of ill health, he missed a concert date. A plane, went to the hospital after an Emergency Landing on an aircraft due to some medical incident. Today we find that prince has died at age 57. And, alex, do you know any more about this illness he might have had, the plane landing a couple days ago making an Emergency Landing . We dont. There are reports that he was suffering from the flu. But there is really not much else beyond that and were digging into it and looking into it. What are some projects that prince might have had under way, alex, at this point or projects that have just been completed . Well, he just released an album with third eye girl which was his newest band. Hes always worked with so many great musicians and great female musicians. This was an all female band backing him on tour. And they were in a fantastic band. And that was an album. He said actually put out four albums just since september 2014. He was super prolific still and, you know, still putting out music left and right. If you saw him on tour recently, i saw him about two years ago, he was still played three hour sets. You know . He would come out for one of the legend airy encores and you would never want it to end. It did not seem like his age was catching up to him. That is the dichotomy of the man, correct . This is a guy who is even in minneapolis, which is not a large city, he was rarely seen. Everybody knew where he lived. He loved his hometown. He never left. He was reclusive. You didnt see him out much. But when he got on stage, to your point, he would play for hours. Talk fwous what you know about the man. He seems like there was the visible and music prince and then there was prince rogers knells nelson and craved and valued privacy. He is one of most reclusive and mysterious artist thats can still exist in this age of social media. So honestly, hard to get into his private life. I mean, he had become much more religious towards the later years of his life. And, you know, i had to also just retreating basically from the public eye and only speaking through his music. But he still would collaborate people all the time. He would reach out to musicians that he loved. A sing woehr get a phone call from him saying i love what youre doing, can we Work Together . He would always reach out to the next generation of musicians and give them his blessing and his advice. And working on music with him. Hes always done that. Hes always been such a collaborator and so all about just extending the love. Alex, its fairly evident who influenced prince. Take me through some of the influences on his career and music and then who has he influenced as an artist during his years on stage . I mean, hes one of the people who has influenced everyone. I know thats maybe a lazy answer. But its actually true. You really cant recognize you cant think of what pop music would look like without prince. But, you know, faumously deangelo, huge influence on deangelo, bruno mars. You would see a lot of prince influence in, you know, gwen stefani, madonna. Even though they were peers, his music influenced her greatly and changed the course of her music. Janet jackson. He produced for the early part of her career and were proteges of prince. So his sound fully went into Janet Jacksons career and influenced her. Its really, really all over. And its impossible to just imagine what music would look like without him. Quest love from the roots of the tonight show, huge prince expert and prince someone who is hugely influenced by him as well. Mark ronson if you listen to up town funk, the Biggest Record last year, that was prince. That was princes sound still living on. It was a timeless sound. And could still hit number one today. Alex, we were talking about how prolific prince has been in his career. 39 albums, four live albums. How big is the prince empire . Well, his catalog is just amazing. And i dont have exact figures, its definitely will generate a lot of money for a long time. These are classic song thats get played on the radio, get played at weddings, get covered at concerts, get played at stadiums at sporting events. Its just a classic catalog. Alex, to that end, again, because he was so private. Was he married . Did he have children . Where will that empire go . I think no one knows right now. And i think its going to take a while to find out just considering how reclusive he was. So thats something that well definitely be looking into. And, you know, there was also a lot of people that had their hand in the catalog including Warner Brothers who he famously battled with. So there will be fights coming, unfortunately. Seven going to pay respects and in a week or, so its going to start to turn to the lawyers and lawsuits. Thats the way these things go. Absolutely. Theres going to be a battle over it. He had few people he was romantically linked with. He didnt have any children. So you know, well just see whats going to happen. All right. Alex, well leave it. There thank you so much for joining us on the phone. Senior editor at billboard magazine. In case youre just joining us once again, the artist prince has died at the age of 57. This is a live shot here of paisley park, his recording studios. Word is just getting out, can you see flowers being left at the fence theres. Power lunch will have more in two. I could get used to this. Now you can, with the luxuriously transformed 2016 lexus es and es hybrid. You ppremium like clockwork. Month after month. Year after year. Then one night, you hydroplane into a ditch. Yeah. Surprise. Your Insurance Company tells you to pay up again. Why pay for insurance if you have to pay even more for using it . If you have Liberty Mutual deductible fund™, you could pay no deductible at all. Sign up to immediately lower your deductible by 100. And keep lowering it 100 annually, until its gone. Then continue to earn that 100 every year. 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In 1982, just a year after mtv launched, he released 1999 which was a massive hit. That launched him into the top ten. He then became an even bigger star in 1984 when he released purple rain which was a big hit movie with a soundtrack that won him an oscar. That soundtrack sat atop the top spent 24 weeks atop the charts. It sold over 13 million copies. Prince toured extensively and just last week he was rushed to the hospital after his plane made an Emergency Landing. After that, he did another couple concerts. But he did have to cancel two concerts due to illness. We dont have official word on what the cause of death was. But certainly a massive loss. Back over you to. Julia, thank you so much. Were now joined on the phone by Senior Editor of the wall street journal chris farley. He has written many books on music. He knew prince very well. Chris, thanks a lot for joining us. Hey, thank you for having me. I dont know if anyone knew him very well. I certainly did interview him. I talked to him for Time Magazine back when i was a music critic for Time Magazine. Now im a Senior Editor at the walt journal. I i remember he wrote a story about an album that i made fun of because it wasnt very good. Instead of getting angry at me, he actually invited me out to talk to him. So i went up to i couldnt make it the first time. I went to the hotel room to talk to him. I remember he had his wife on his lap for the entire interview. He wouldnt let me tape it. Because he didnt want his voice to be sampled. And, of course, thats probably a smart move. He was just ahead of the game in everything. And i just remember just thinking it was so interesting that, even though dinlt like the last album, he had enough confidence in himself as an artist that he still wanted to talk to me, still wanted to do an interview. His loss is really a great loss for music. Did you say he had his wife on his lap . The whole interview. And he was eccentric kind of guy. Everybody knows. He certainly carried that out in person for the entire interview, he insisted on having his wife in his lap while i talked to him. Insisted i not record his words because he thought i would sample them or use them if a song. He wanted to make sure he had total control over his image and word. Chris, we were talking about this, i dont know if you heard the previous interview while waiting, we were talking to alex gale of billboard. What is going to happen to princes fortune . Is he do you know, he is still married . Does he have children . Were trying to figure out where this empire will go. Well, i think this is something that courts are going to have to figure out. When was this interview you did with him where he had his wife on his lap . This was back in the 90s. This was a while back. Certainly with someone like prince, someone who had this large recording empire who had a lot of interests everywhere, in the movies, in other media, was ahead of the game in a lot of things. There will be a lot to sort out. Usually with someone that pass as way, there is a rush to figure out what is happening. It is probably best to sit back, sort through things, find out what all his actual familiar ties, actually are before we announce. Do you know chris, whether he had children that he leaves behind or not . Right now, to me, its unclear. I covered him as a recording artist. I didnt talk to his kids. His wife didnt even talk a whole lot during that interview. So it was really focused in on his art and not on, you know, his family life and what is going on. There frankly, i didnt really care. I was really covering him as a music critic and his music, movies, art, what is going on there. Wasnt a gossip piece. Chris, jond music, beyond the songs and albums that we all know, what is in the prince empire . Im assuming he has got his hands in money and into various ventures. Well, heres the thing about him. He was recording constantly. He was always recording. He was always doing new things. Always putting new things on tape and so its going to be interesting to see how much stuff does he leave behind that hasnt been released . Were seeing artists like bob marley, light jimi hendrix make tons of money after their death as stuff gets released, as stuff finds its way out to the public. One has to emergency given what he told me about his constant need to record that maybe theres a lot of stuff out there that we havent heard yet. I mean, he was known as one of the one of the most pes prol recording artists in history. We havent seen a lot of albums from him lately. I have to imagine there is a lot of stuff in the vaults that well see at some point. What were his three greatest songs in your estimation . Thats a good one. Purple rain is up there. Probably near the top. I love almost during the paisley park period, the song paisley park always stood out to me. Alphabet street was a great song. You know, im just sort of thinking off the top of my head. Party like its 1999. Its at every wedding. I have to put the congress kiss up there, too. I heard the song kiss. It was so stripped down and direct. The guitar rift didnt sound like anything else on the radio. Then everything on the radio sounded like that. And thats kind of what he did throughout his whole career. He sounded different according to everybody else and everybody tried to sound like him. And very few artist dozen. That many artists to day, theyre still taking a page out of what he did. I mean, artists like the weekend. And bruno mars as a prior guest mentioned clearly quite on the tree that went way back into rhythm and blues and came through james brown and Michael Jackson as we look there at the scene outside of his residence and recording facility its not his recording . No, that is his recording studio. Heres my dirty secret. I have been by there. I stalked it a little bit when i was in minneapolis a few years ago. That is his recording studio. He has a separate home. A separate home . Did he also live there part of the time . There is a residence in there, im sure. He has a separate big house. That is the place where he pass add wed away, correct . Its in the same town, sow lived like very close to that building. I dont know if thats the scene here. You know, when youre in minneapolis, i was there for work. I said im close. Its on the southeastern side of minneapolis. Heres the thing, chris. The thing about prince, im going to be a little geeky about music. There are very few artists when youre driving on the road and flipping through the channels on sirius, usually youre locked into 112, but when you flip through any song hes on, you just stop. He had an unmistakable sound. The song when doves cry, you think what the heck is going on there . I remember saying that is something really cutting edge. It takes music to new places and he kept doing that throughout his career. He also is someone who kbinld things in a way that other artist dz not. A lot of artists talked about sex. Other artists talked about salvation. He ended up combining them in a way and saying theyre not incompatible. I can talk about god and sex in my music and not have a hangup about it. He also combined, you know, rock n roll and soul muse nick a way that was totally unique. He said its cool to play a rock guitar in a song like lets go crazy and make it a pop r b song. He did it without contradiction. He did it with a sense of fun, a sense of purpose. Nobody else did it. Nobody else profiled he did if music which is why were still talking about him decades into his career and now after he has pass add way. And, chris, were going to let you go. There he also put minneapolis on one of the best music cities in america. You have the jay hawks, replacements, numerous others. Hes a hometown guy. Amazing stuff. Chris farley, thank you very much. We do appreciate it. Thank you. All right. Were starting to get some tributes on twitter. Our dearly beloved prince. Tears on the tour us about. Ill never forget my brother. We had good times. Another tribute coming in from Justin Timber lake, numb, stubbed, this conditioned be real. Even the rock, the actor, Dwayne Johnson chiming in, unbelievable. Just heard about prince. Strength and light to his family and loved ones. One of my favs. Rip, brother. A lot of tributes pouring in. I know a lot of people wonder why you spend so much time on prince, youre cnbc. Hes an industry. He was an icon. He challenged the industry when it was not being challenged. You made the point, he took on that studio system. He wanted to own the rights to his own music and that is a challenge that is still going on today, particularly when streaming is becoming so popular. Most of the revenues in the Music Industry are now coming from streaming and not down loads. And more and more artists are taking on this business model. You have to think that to some degree they stand on the shoulders of prince in challenging how the industry pays the artists. Rebel and icon. Well take a short break. Were back with more right after this. Credit karma, give yourself some credit. Know that my score sucks. Told ya. Thats about what my score was when i signed up. No way i mean it took some work but credit karma made it alot easie. Hey, maybe ill give it a shot. Check out credit karma today. Credit karma, give yourself some credit. No missed payments. Ooohh, up 5 points. Paid off a loan. They found out whos been who . Cking into our network. Guess. I dont know, some kids in a basement . You watch too many movies. Who . A Small Business in china. A business . They work nine to five. They take lunch hours. Like a job . Like a job. We tracked them. How did we do that . We have some new guys defending our network. New guys . Well, theyre not that new. Theyve been defending things for a long time. [ digital typewriting ] its not just security. Its defense. Bae systems. Great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcast business. Built for business. Welcome back to power lunch. Were just about at the session low. Heres whats interesting. Within the s p 500, the three weakest sectors are the yield sectors. Places people went to for safety in the past. They are all the biggest decliners on the session. Staples down 1. A . Tell come down 2. 7 . Utilities down 2. A . Lets send it over to Rick Santelli and get a check on the bond market. Oh, break. Excuse me. For your family. I think i see my, my two kids playing in the backyard. I think i see a swing set cause theyll be old enough to be able to handle that kind of stuff. This is where i see our family for the next 15 years. How do you not, how do you not get emotional over that . Whatever home means to you, well help you find it. Zillow. This cit added this other level of clean to it. It just kinda like wiped everything clean. My teeth are glowing. They are so white. I actually really like the two steps. Everytime i use this together it felt like leaving the dentists office. Crest hd, 6x cleaning, 6x whitening. I would switch to crest hd over what i was using before. And casuper food . Is that recommend sya real thing . Cedar . Its a great school, but is it the right one for her . Is this really any better than the one you got last year . If we consolidate suppliers, whats the savings there . So should we go with the 467 horsepower . Or is a 423 enough . Good question. You ask a lot of good questions. I think we should move you into our new fund. Sure. Ok. But are you asking enough about how your wealth is managed . Wealth management at charles schwab. We begin this hour with the sad news of the death of the music legend prince. Apples ceo tim cook tweeting, unbelievable. Just heard about prince. Prince was a true innovator and a singular artist. His music and influence will live on for generations. Rest in peace. That from tim cook of apple. Julia is live now in los angeles. Julia . Tyler, thats right. Prince dead this morning at age 57 at his home in suburban minneapolis. We talked a lot in the past hour about what a force prince was in music. And the fact that he had so many top albums and so many, you know, seven grammys. He was nominated for 30 grammys. He won an Academy Award and two Golden Globes. I think it is worth pointing out he wasnt just an iconic artist, hugely prolific and influential, he also was a force in the Music Industry. He signed with warner muse nick 1977 whether he was just 18 or 19 years old. Released his early hits 1999 and purple rain through warner music. By the early 90s, he was at odds with the music label. They were battling over money and music itself. Prince took that battle public by appearing with the word slave written on his face. Because Warner Brothers controlled his name and any music under his name, he changed his name to an unpronounceable symbol and was referred to as the artist formerly known as prince. He established his own label and he did a number of records with warners rivals including the three disk owe i maemancipatio he released album himself on his music club online n 2007, he announced he is going to take action against youtube and pirates for unauthorized use of his music. He came around eventually to youtube and in 2013 debuted a single on youtube. Last year he pulled all his music from streaming services and he put out a new single on spodify. He inspired artists such as radio head to take a stand against labels and go it alone. Guys . Lets bring in fast moneys john agarian. He went to high cool with prince rogers nelson. Sorry to give away your age there directly. You knew him and his brother. You said that even in high school this dude would get on stage and play a bunch of instruments and rock it out at 16, 17 years old. Yeah. Literally he must have been a sevant. He was. He was genius. Im not first person and i wont be the last to call him. That obviously sh thats iconic. Even tim cook is using that word. He was exciting whenever he played people just stopped what they were doing. It wasnt a question of at a prince concert you had to ask people to be quiet. People were so mesmerized by him. Even people like Keith Richards who called him the greatest guitarist of all time. Did you think he was going to be prince . Did you have a glimmer of this stardom . I cant say that i did. I wish i did. But in that first album. I wish i had a little piece of. That he did a fabulous job, melissa. But i just thought he was a very talented young man when we were both young men. And im very proud of all the things he did as far as charitable. He was always very charity conscious, he made a lot of donations that were under the radar. This is a guy that if those donations were public, people would have said what a generous guy. But he didnt care about that. He didnt care about getting fame that way. He got it from exactly what you see on your screen now from playing and entertaining and giving people he would play at your high school assemblies. Yes. Literally, he would just get up there on stage he probably played at a number of proms and things like that as well. I mean, hugely talented guy. The story goes that when he walked into warner, i believe he was laying down tracks on the drum for warner and then warner said, okay, now call the next guy. We got to get the saxophone guy in here and he said i can play sax. And then after that, after he laid down a track of that, they said get the guitar guy. He said i can do that. So they said, we better sign this guy. Because he can play everything. Michael jackson may be the king of pop but he was the prince. There you go. As weve been saying here, i dont obviously, to get on stage that way and to perform on that level, you have to have a certain selfselfconfidence, a certain amount of ego. But he seemed like a quiet, humble guy. He never left minneapolis for the hollywood lifestyle or the big place in new york city or whatever. He stuck close to his home. Right. Thats as far out of minneapolis. Its by a lake. And a number of other artists, as i mentioned, jimmy jam, terry lewis. I dont know what it is in the water. Jayhawks, the whole steady sh replacements. I just was tweeting out, no city punched above its weight more than minneapolis and he was the ali. Thats the only way i could frame it. This guy, wonderful artist. Great guy. Very talented athlete, i mentioned that in the last hour. He loved to play basketball. And he could basically play basketball on a very high level. All right. Hell be missed. We talked about tim cook tweeting out. So right now prince all of his songs are at the top of the itunes charts. Looks like im looking. Its going tok changing. Little red corvette. The very best of prince. 1999 is on there. Little red corvette is for sale. Restst songs are 1. 29. Thank you very much. On wall street, new proposals unveiled today that could have a major impact on how banking executives get paid and when. Mary thompson is covering that story for us. The devil in the details. And there are lots of details. Thank you so much. Banks, credit unions, broker dealers, registered investment advisors, any of the firms that are public or private and have a billion in their own assets, theyre impacted. Still executives at the biggest wall street firm like j. P. Morgan, goldman sachs, morgan, theyre impacted the most. This rule is proposed as a prere proposal from 2011. It deals with insentive based compensation or bonuses. The same to reduce excessive risk taking. Among the changes from the original proposal, it mandates 60 of incestive p nvest. S be paid out after four years. Executives at firms with 5 50 it 250 billion in assets have to wait for three. The standard on wall street is three year deferral. But for a Smaller Group of employees. Second,en that is new, incentive pay for these executives at firms with more than 50 billion in assets can be clawed back. They can be clawed back at the executives engage in misconduct representing in reputational harm to a firm, fraud, or if the executives represent performance to boost pay. Lastly, all firms with over 1 billion in assets need to retain records on kben sacompensation years. The National Credit Union Administration became the first of six recollectoregulators tha approve this proposal before it comes out with Public Comment. Then it will be adopted. Brian, back to you. Lets continue our dialogue here. Professor at Fordham University and Dianne Knight from the Cato Institute joining us now. I would imagine you believe this is a good idea, some would say it doesnt go far enough. Do you think it will accomplish anything . I think youre right. It is a good idea. It will not go far enough. What it will accomplish is it will begin to move the needle of getting the bankers to really think about it and investments as a long term obligation. They have a duty to the public and not just to their own organizations. Bankers work with public money. Theyre not going to make decision thats are in the best trf the very public money that theyre supposed to be in charge of. And so what would you have done differently here . Its a 278 page proposal. You have seen it . Do we know whats in it . Ive read a few pages of it. And, yes. It will take some time for all of us to digest whats in it. Largely i dont think its going to have as much impact as well because it doesnt actually curb compensation the way the headlines state. It stretches out when it is delivered. You want them to curb compensation, too . You would be for that . Youd be for the government going into a private sector determining how much somebody can make . Absolutely. What do you think about that . You know, i think theres been a trend in regulation lately, especially with doddfrank and have the federal investigators serve as super directors. So theyre looking over the shoulders of companys board of directors saying, no this is a better way to run the company. And mere mortals are just not capable of running that Many Companies no matter how many federal regulators you have. So even if they were great at Running Companies, i dont think that regulators just are capable of doing this. And i also dont think that they are necessarily better at Running Companies than the directors who are actually sitting on the boards. So i think that theres there are a number of provisions in dodd frank that are similar that have the government coming in and second guessing the Business Decisions made by corporate directors. So does the government have any role to play here in setting parameters around how executive compensation is specifically incentive compensation is paid out and when . Any role at all given the fact that government is sort of the last man standing if these institutions take on too much risk and go blowy because of the insurance guarantee. I think that backstop adds something into it. I would say that not all of the you know this covers companies that are not necessarily covered by, for example, fdic insurance. So broker dealers are covered. And those there is not that guarantee that government is providing. But on those that are, let me then youre quite right. This includes Asset Managers who wouldnt be covered in it and so forth. But among those that are covered by fdic or the Credit Union Insurance fund and so forth, you would say that theres no role for government in there or not . I mean, this gets into whether we should even have a government backstop on those. It does. I would say the fdic already has identical language governing the compensation of covered institutions. So its unclear why we would need doddfrank to put this additional level where we already have the language is almost exact lit same as the language in the act that covers the fdic. So if were talking about companies that are already backstopped by the government explicitly, we also have language to do that. So what this is doing is its extending beyond that to these companies that there really isnt a government interest in regulating. I would say, you know, we already had this language for the Companies Covered by the fdic and that didnt stop the financial crisis. So its not clear how this additional regulation would, you know, doing the same thing to more people is going to have a better effect. How it would, aerial . I mean before talking about the notion of playing with public money, what specifically are you talking about when youre talking about this notion of public money that the banks are using . Well in, general, whether you have a bank that is investing and has opportunity to create a lot of wealth, they get that upside. But if the bank goes belly up, that down side is carried about it taxpayer. So the extent that government so you want to put in regulations in case a bank goes belly up and there has to be some sort of taxpayer bailout . Thats exactly right. This is not just about sort of creating mechanisms through which we can you know, enable bailouts to be more easily paid. Its about creating a mechanism to prevent the overspeculation in the first place. Do we think it will . Do we think it will stop that . Unfor the n unfortunately sh we do tend to make the same mistakes over and over and over again. We do. And one of the mistakes is continuing to bail out banks. But i would also say that every time we try to regulate executive compensation, its like water flowing around a dm. All that changes is the shape. If you look back to the 90s. There was 162m, a clinton era regulation that was supposed to curb executive compensation and encourage incentive based pay. Did it. What happened is we got a lot more Stock Options being awarded to executives and if you look at these, you know, people complain about huge executive compensation, a lot of it is Stock Options. So, you know, the attempt to curb executive pay to lower it actually resulted in increasing it. And this happens over and over again when you try to regulate this. Whats happening is these companies have a service they need to buy in order to move forward. They need to buy the services of an executive. Just like they need to buy office space. They need to buy paper. And they will find a way to pay the market price for the thing that they need. If you make it more difficult for them to pay it in one form, theyre just going to change the form and pay it in another way. So use different types, different compensation forms and there will be people, you know, doddfrank, it means pay for a lot of lawyers to figure out how to get the same compensation. Thank you so much. Thank you. Lets take a look at the financial sector. S a and p bank index is down. Which bank stocks could continue to rise throughout the spring . We have the names. Hi, me list yachlt we head deeper into the Second Quarter, well see if the worst performing sectors so far of 2016 can find a way off bottom. We crunched the numbers going back to 2001. Typically financials as a whole tended to outperform. The s p 500 in the Second Quarter barely goes anywhere. So which financials do better over the course of time . Wells fargo is a name that had a strong three months. History shows that wellses tends to gain 3 over the quarter. Bank of america also traditionally squeaking out gains of 1 during the quarter. Majority of the time at least. And on the flip side, there are some banks that tend to underperform including Morgan Stanley which are the biggest declines among the big banking names and since 2001, morgan has fallen 3. 5 in the Second Quarter. Block rock is tip ukly down 2. 5 . Goldman sachs is also in the loss column as well. Lower by 1. 8 over that period. So sector nomics tell you there are financial names worth banking on in this quarter. Back to you. Thank you, susan. Now to a market flash. Blackstone is looking at buying out Concordia Health care. That is a Canadian Pharmaceutical firm, that according to bloomberg. Talks are in the early stages. And other bidders may also be joining in. Take a look at the stock. It was up about 25 before being halted for news pending. Before being halted, i just want to point out volume. Shares did see extremely high volume. Third largest volume day ever. And the stock again is expected to reopen shortly. And when we do see that stock resume trade, well be sure to bring that you price action. But again, stock moving higher on this potential buyout from blackstone. Me list yashgs back to you. All right. Thank you. Up next, the ultimate rich person problem. Imagine being so loaded you dont realize that picasso is missing from your house. It happened. Well tell you the home and what is happening now. Shares of dish and viacom are both in the green today. Sony cutting profit estimate for the fiscal year ending in march due to slowing global smart phone sales. Sony is down by more than 5 . And walmart will cut three slots from the board of directors as the annual Shareholders Meeting in june. The total size to 12 members. Jim walton, the son of sam walton is among those leaving the board. Grandson is taking his place. Power lunch is back in two. Real is making new friends. Amazing is getting this close. Real is an animal rescue. Amazing is over twentyseven thousand of them. There is only one place where real and amazing live. Seaworld. Real. Amazing all right. There say lot going on today. There is always time for street talk. Your daily dive into the key wall street stock calls of the day. That is daily. First stock is tyson foods. Genius. They start coverage with a buy rating and 8 o target. They like the stock and say this stock is not a chicken feed. Says tyson is benefitting from strategic deals and also lower input prices. There is your chicken feed relationship. All right. The Company Bought hill shire brands a while back. They also like the stock buyback. By the way, that 80 target on tsn, 25 upside. This was a 5 stock in 2008. Its maud a run in the last year. Incredible run for chicken. Second stock, tesla. Credit suisse is removing fit the global focus list. They have seen volatility today. Dont jum top conclusions though. The reason is that primary analysts is leaving the firm. So as of april 5th, the stock was rated and the price was lifted to 2. 8 o. It has been a rough week for tesla because of that consumers report out highlighting the problems, reported problems with the model x, specifically the door. Watch the supply of lithium over the next ten years. This could be like the oil rush 100 years ago. Everyone needs lithium. Last stock, endo international. Take a chance on this beatened up name. They start coverage with a market outperform and a 56 target. This company has a deal to buy pharma. It is greatly expanding the generic footprint and it gets the first eight to file reference onz eight different drugs. Thats according to the analyst there. The stock has had a lot of woes lately. And its been slammed in part because of a drop in biotech generally but more competitors for the drug litoderm. Concern about a lack of capital. Worst performing stock in the s p 500 since the february 11th lows. The target is 90 upside. This was a 90 stock one year ago. It is beaten up. Maybe didnt deserve to be beaten up that much. That is the basis of the call. The next stock were watching, apple. Raymond james is again lowering the iphone unit estimate again on supplier comments. It is maintaining the market perform rating. It is guidance from qualcomm last night that got them concerned. Qualcomm posted chip unit guidance that implies that given the big share gains over at samsung that, weakness can be attributed to iphone build. That was moved from monday to accommodate a Memorial Service for bill campbell. But remember, they came in with a concerning data point. It is piling up here. And look at the stock. Its down 16 in a year. Its an amazing company. It just hasnt returned. Finally, your smaller under the radar name today is agree reality. Ticker adc. Its an 800 million market cap. About 300 properties in 42 states. Jeffries starting coverage with a buy and 45 target. The analyst there says that over the past two years, agreed reality has grown rapidly through deals which resulted in a more diverse tide port foal yes. He calls it an attractive investment and the lease sector. Most of them are single units. Theyll do a mcdonalds or a fisness place. They dont do giant malls. That is your under the radar call today. Agreed reality. Much more power lunch in two minutes. Stay tuned. You shouldnt have to go far to get the help youre looking for. Thats why at xfinity were opening up more stores closer to you. Where you can use all of our latest products and technology. And find out how to get the most out of your service. So when you get home, all you have to do is enjoy it. Were doing everything we can to give you the best experience possible. Because we should fit into your life. Not the other way around. Hi, everyone. As weve been reporting, prince has died. He was found dead in his home in suburban minneapolis. No details were immediately released. He was acclaimed as one of the most inventive musicians of his era. With hits including little red corvette and lets go crazy. He was 57 years old. Well have more in just a few moments. President obama wrapping up his visit to saudi arabia where he met with top officials from six arab nations to discuss Regional Security issues in the persian gulf. He is now heading for the united king tom where he is scheduled to lunch with Queen Elizabeth as she celebrates her 90th birthday. Survivors of ecuadors earthquake are growing increasingly desperate as they struggle to get food and water. While humanitarian aid has been pouring in, distribution has been slow. People have been waiting in line thats are more than a mile long waiting for supplies. And the fbi paid more than a Million Dollars for the Software Solution that allowed agents to open sam bernaildho shooters iphone. That is according to a comment from director james come. He made the comment at a security conference in london. And that is the news update at this hour. Me list yash melissa, ill send it back you to. Lets get more on prince. The world reacting to the loss of a legend. For many people, including myself, his songs were the soundtrack of our youth. Top three albums right now on itunes are all prince, number one is the very best of prince, number two is purple rain. There is background on his passing much prince died in minneapolis this after earlier this month the artist was on tour and canceled a few concerts in atlanta. Representatives told tmz he had the flu. There has been no official cause of death. Prince was a mega star and many times over his 35 year career. He was the biggest pop star on the planet. He released 39 albums, he would be seven grammys, two Golden Globes and one oscar. Five of his singles were number one on the charts. His hit movie purple rain in 1984, really catapulted him to the next level of stardom. The soundtra spent 24 weeks on charts. He is known for rock, pop, jazz, and blurring racial and jenlder lines will have influence on generations of musicians. Quincy jones tweeting just not too long ago, rip to prince. True artist in every sense of the word. Gone way too soon. And from his home state of minnesota, senator amy tweeting heart broke ton hear prince has died. Hope hes found his world of never ending happen youness. Can you always see the sun day or night. Im sure the responses will continue to come in. Back to you. All right. Thank you very much, julia. Now lets get a check on oil, crude oil closing for the session now. Were seeing losses in wti as well. Wti closing down by more than 2 . Almost the same here as were checking brent at the same time down by 2. 5 . Mike rothman joins us. I mentioned brent because you think that brent will go to 85 by the end of the year. What is the primary driver going to be behind that 85 price target . All you have to do is understand demand. Supply contracts by 800,000. There is no way that opec fills. That. Opec doesnt need do anything, a freed or cuss in order for 85 to come to fruition. No. Why not 65 . 85 is a number they mentioned two years as as likely good resting point on the way back up. Thats an artificial number. Who mentioned it . Saudis. So you think the demand is going to continue to grow . Youre not worried about economic weakness around the globe you . Think americans are going to keep driving and hooting their houses, the whole bit. You think theyre going to do something other than that . I dont know. Oil demand growth understated by most measures for the last couple of years. Its an issue that comes up repeatedly called missing oil. Its a misnomer. It means demand underestimation. Even in the just ended quarter, Global Oil Demand came in a Million Barrels higher than what the consensus believes. I know there is a lot of chatter about whether the market is oversupplied. Some people say two million a day which is really fault math. Why is it faulty . You cant find the oil. You may not be able to believe the opec numbers. Well, generally you have opec secondary and primary and jodie sources. Theyre all different. Nobody really knows how much oil is being produced. So on production data, jodie is a data base formed to try to help get a better grip on actually demand in the emerging markets. A lot of the data is delayed three to five years. Production data generally, we use the iea and most people in the industry do. The only Industry Group that has a mandate to go back and collect it sends to be very, very close to the mark. It is triangulated from operating companies and a big revision may be. 2 . So the supply numbers generally are on track. The issue people have is demand. And the problem is that youre waiting on a lot of that data. S so what can you do is a parent demand. I know this is a general show. But if youre produciing 97 Million Barrels of a day, then demand is 97 million bare i wills a day. Can i ask you a question. You said 85 and you said the saudis mentioned 8 85 as a goo resting place. Burr yours is based on nonopec production going down. So what do you care about the saudis say billion 85 . Well, the issue of prices and i know this is going to be quick. There is only two real prices in a discussion. What kills supply and what kills demand. And we just saw the price that kills supply. The price that kills demand is very far north of here. In between is what someone is willing to try to fight or defend. So when the saudis mention a price as something thats critical where you look at their budgets, that tends to become a center of gravity. All right. All right, mike, thank you very much. Youre on the record. 85. Well have you back, right or wrong. There is someone behind the cameras, right . No film. No, it lives on. No matter what. We got you on. Perfect. Something. Good. All right. In trading nation today, lets talk about the relationship between the dollar and stocks and where each may go in the weeks and months ahead. Aaron gibbs and laura slosberg. Ill do it like. This boris, with you on the dollar and then the reaction. What do you see happening to the u. S. Dollar specifically against the euro . Specifically against the euro right now, its very much in a stationary phase. Bhaut is interesting is the dollar has weakened over the last two quarters. And stocks have rallied. I dont think thats a coincidence. That is a conscious effort by fed to make shurt dollar stays low so that u. S. Equities can begin to rally. The reason why all this is happening is obviously because they really want to make sure that we dont tip over into any kind of Global Financial panic. Its interesting. Before the dollar used to rally with equities, now lower dollar means positive equities. The fed changed the correlation. Okay. So, erin, based on what boris said, how does that, if at all, impact your view of where the overall stock market is going . I see the stock market as still trading within this range. We just dont have the earnings to push the growth higher. But just to talk about the dollar and the equity market relationship, recently its been very positively correlated, up to 80 . That means they were really moving in lock step together. When you look at the past ten years, sometimes theyre as high as 80 positive to negative 40 . Sometimes theyre moving in opposite directions. Its very much again about what the fed is doing, what other governments in Central Banks are doing that moves the dollar. But may not necessarily change the fundamentals. Okay. Well said, erin and boris. Thank you very much. Folks, reminder, we do two additional segments every day. Can you find them on the intraweb. This just may be the most interesting and amazing story of the year so far. First, imagine you own a picasso worth a million bucks. Then imagine that painting is gone. Allegedly stolen from your home. But then imagine it takes you nearly seven years to realize its gone. This is a real story. Robert frank joins us now with it. Unbelievable. Thats a big house. He has multiple homes and a lot of art. Thats what happens. The 88yearold widow of real estate magnet lawrence tips real dwrized her picasso painting is missing. This is called portrait of maurice but recentlinessed it was mising from her new york home but maybe it was in storage or out for repairs. Her lawyers tracked it down do a gallery in florida. Miss tish filed a suit and the judge ordered it returned to new york. He said he bought it legally and fighting the claim. Its now for sale for 1. 1 million at his gallery. Now how did it get there . His lawyer said it was sold by tishs former house keeper now many ecuador. Now that buyer tried to sell it for 700,000. It failed to sell. So he then sold it to hendal for 350,000, now theyre flipping it for a million. It went from 60 to 350 to a million. Thats how the art market works. If a papting is passed through two people since the theft, it is ligit. Thats what hendel is saying. I find that argument a little hard to believe since i could steal something, sell it to tyler, melissa and then brian could buy it. It is art laundering. If i have half a sapped witch in the fridge for three days, and its gone, who took my sandwich. I recognize immediately its gone. A Million Dollar picasso . Disappears. Seven years later somebody realizes the painting is missing . Again, you know, what we dont appreciate with the wealthy is that they have multiple homes and a lot of art. So, you know, she but this is a picasso . Its a picasso. She probably has others. This could be one of several picassos. Its one of those stories that offers incredible window into the lives of the wealthy and what they may not notice. Why dont they put chips on these things . A lot of people do. Exactly one of those things. Also again, the lack of transparency in this market where kit go from 60 to 350 to a million, that shows you how much flipping and markups there are. Also shows whoever the initial thief might have been, who i know theyve implicated. Theyre neck what dor. We dont know. They could have gotten a lot more. 60,000 in ecuador goes a long way, im sure. Thats true. We dont know who took it. We absolutely dont know. Thank you. The socalled North Carolina bathroom law is becoming hot topic across america. But its also a huge issue for business in the state. Well get both sides of the business side of that debate coming up. Many businesses and entertainers letting North Carolina know that they are not in favor of the socalled bathroom law. The list of those Companies Choosing to boycott doing business in North Carolina is growing. But not everyone is against it. Espn fired former pitcher Curt Schilling after a Facebook Post in which he appeared to support the bill. It is opposed by the Lgbt Community s this law bad for business . Lets bring in carrie cupec of the Alliance Defending freedom. Shes in favor of the North Carolina rights law and tim giuliani of the Greater Raleigh Chamber of commerce. He said the law is bad for business. Welcome to both of you. Mr. Giuliani, let me begin by asking you, what has been the effect so far on business in North Carolina . Thats number one. And does anything in this law prohibit a business from establishing its own policies regarding who can use which bathroom or locker room facility and when . Yeah. Well, North Carolina has an outstanding reputation across the globe. And particularly Research Triangle for attracting great companies, able to tract a really great workforce in our community through a very talented diverse educated workforce. And so the message that this bill has sent as has changed some opinions. And so were coming out in favor of repealing the bill. So that were able to repair our reputation that we rightfully earned for so many years. And to your question about does this change what business is able to do and so the impact its having is that it changed state law in how employees are able to seek court on if theyre terminated for something to deal with the discrimination case. So if a woman if theyre gay, tra transgender my questions are two and i would like to come back you to on both of them. Number one, what have been the tangible effects, the quantifiable effects that you have seen with respect to businesses either not doing business there, pulling out, not hiring when they said they were going to hire and does this law narrowly speaking, i realize there are other antidiscrimination provisions in it. But with respect to a company, a private employer in its facilities making its own rules governing the use of the rest rooms, what happened there . Whats happened . Okay. So the tangible benefits weve seen, weve seen a reversal decision by paypcal to come int charlotte. In carry, North Carolina, weve seen 250 jobs by Deutsche Bank change course. And so at this time theyre not expanding into North Carolina. Weve had a tech company that was looking at our area and considering relocation of up to 1,000 jobs. Change their decision. So there are very tangible benefits. That speaks right to our Economic Development mission. But its also impacting in tourism. Weve had conventions cancel and more are considering that option if the bill is not changed. So were seeing very tangible changes. Let me get you to address the business effects that you have heard of and seen as a result of this law and whether you dispute whether those effects are actually real and quantifiable. And second, why do you think this law is defensible in an era where the state clearly wants to have commerce and be inclusive . Why is it defensible . I think its really sad that the Raleigh Chamber of commerce is taking this position. The Raleigh Chamber of commerce is supposed to be representing the interests of Small Businesses. Small businesses in North Carolina very much favor hb 2. Why . Hg 2 is good for business. Ate louz Small Businesses to make decisions such as do they want to open their bathrooms and rest rooms and locker rooms to anyone who wants to identify as male . Theyre free to do so. If they dont want to do so, theyre also free to do so. As cnbc and forbes and, you know, many reputable freedom is good for business, which is why North Carolina has always had one of the top economies in the state, but whats bad for business is caving into big corporations, bullies who are currently going after North Carolina Small Businesses, going after the people of North Carolina how are they going after Small Businesses, carrie . They may be opposed to this law, but i dont know how they would be directly targeting Small Businesses . And what about the question that this is de facto discriminatory against transgender people . Well, its absolutely not. For starters, numerous Small Businesses have joined a letter and joined a coalition that support hb2. These big businesses are saying we are free to operate according to their scrawls, and apparently that i values let men into womens locker rooms. They are determined to extinguish that same freedom for Small Businesses. These same corporations, lets look at paypal, for example, they are doing business with countries that currently execute people who identify as lgbt. Theyre currently doing with countries that dont even allow women to drive and determining whether it should be a legal right for women. So i think they need to take a good hard look in the mirror before they star bullying the Small Businesses and people of North Carolina and frankly bullying the millions of women like myself whojustifyfully fied about a man in a locker room with me. She raises interesting points. Im going to ask you to make it quick, tim. Are they bullying Small Businesses the way carrie described . Well, i represent an organization that has over 80 of our members as Small Businesses, and we had overwhelming support to take this position, so i would disagree. Folks, thank you very much. Well come back to this one, im sure, as this controversy simmers along. We appreciate it. Thank you tyler. The ceo of polaris. Weve had a lot of breaking news, some from your town in minneapolis. Before we gets to earnings and motorcycle sales, i want to ask you about a recall of the rzr, the fourwheeler, you recalled a bunch. There was a tragic accident a couple days. Give us your take on the recall and what you have found out. Brian, we take quality and safety of our product extremely safely the death that you referred to happened about six months ago, very tragic rollover incidents. Our thoughts and prayers go out to the family. What we have done here is take two of our highestselling, the 900 and 1000 series products, over 160,000 produced, and weve gone through the entire system to try to make sure we eliminate any and all opportunities for a thermal event or a fire to happen. Were very confident and working very closely with the Consumer Products safety commission. We have found a way to do that, and we will start shipping kits tomorrow to our dealers and start repairing our consumers products as quickly as possible and give them the ironclad assurance they have a safe product. Will that recall have any kind of material Financial Impact on this quarter, scott . Well, it had a Material Impact on our First Quarter, we absorbed 30 million of what ill call onetime coast, much of it was warranty and legal cost related to the recall in our thermal events. Going forward, its not a significant amount of cost, because we took so much of the reserve in the First Quarter, but we will spare no cost to make sure that we get our el consumers riding in safe vehicles ar face as we can your motorcycle sales were up 18 , do you have hard evidence that you are taking market share away from Harley Davidson . Its impossible to look at the numbers and see exactly who youre taking market share from. If you look over a threeyear period of time and hours have gone up significantly and theirs have gone down, its hard to dispute that evidence. Certainly i think as the analysts are looking at, if theyre understanding if were up 50 in retail sales in the First Quarter and the largest competitor is down half a point in the united states, probably a good chance we took some market share. You know, we look at the orv segment here, you cant have a snow mobile without snow. Theres not a lot of snow the last few years here, scott. How much of it is weather related versus simply theres not an appetite for things like snowmobiles anymore . You know, we found a Loyal Customer el base. Its not growing as fast as we would like, but certainly very, very stable, but it does go up and down with snow. In the midwest, there was a lot of snow, el nino related. We had a blowout First Quarter from retail sales perspective because of the very good snow out west. Weve got the industry leading snowmobile in the mountains, and were really thrilled with our new timber sled el product, and we call it a small part of our business, but a big part of our heart. We like what were doing there. Im kip of a homer, kind of a made in america guy, youre opening a new facility in huntsville, alabama. How many people will you employ . Ultimately about 2,000 employees. Really its not just the investment in the employment in america. Its the opportunity for us to treyly transform our company into a true lean enterprise. Well have the opportunity to add a lot of have ale to customers in our dealer with shorter lead times, faster innovation, and ultimately get to a built to order type of business model. Are you daring to suggest you can make a profit selling a made in america goods, scott . You know, brian, we make a great many of our products, every single motorcycle we make is in spear lake, iowa, and were very confident. In fact our target is to have the huntsville plant deliver product at the same cost that we get out of our monterey facility. Scott, we appreciate you joining us. Thank you very much. Have a great day. Thanks, brian. The big breaking news in the past two hours, prince debt at the age of 57. Joining us on the cnbc newsline, the cofounder of mtv. John, great to have you with us. Anybody who knows prince knows his music videos, they were mini shows, he was a true entertainer. What did that do for mtv when it was just taking off . He was one of the artists who put us on the map. He made while people were putting together traditional videos, he broke every rule when he made videos. We began to play his videos almost every hour on the hour, because people would flock to not only hear his music, but see how creative hef was. He along with Michael Jackson helped define the channel, and even today hundreds of our radio stations continue to play his music. There are very few artists you can call musical geniuses. Prince is one of them. He passes the test of time, because his music even today sounds as fresh as it did. You cant say that about many. Of Michael Jackson you can, perhaps, even the four seasons you can, but he was so distinctive that way. Thats really the secret of his and other artists like him greatness. He could never stop making music. Most artists would put a record out every two to three year. He put on the 39 albums out of 35 years, plug bootlegs, r b, funk, rock, he was all experimenting up until probably the last show he played i think in atlanta earlier in the week. Thats who he was. He played after the saturday night live anniversary last year, he gots up and stage and played all night. While a musical genius, he was tortured by the business of music. He didnt want to live within the parameter of the business, the starmaking machinery. He just wanted to keep putting out records to the point where he basically quit the business in 1995, 96, and just started to make reports on his own. He didnt want to follow anyones lead. Its interesting. We are talking about the very battle that sort of helps define the industry, certainly left an enduring mark. How did he view streaming . That seems to be the controversy today. Well, he was he is in favor of doing anything he was in favor of doing anything that would get his music played. He hated any kind of restriction around music, which would mean limited amount of songs on a record, number of reports. Thats why he put out so many bootlegs, but he did want to get paid, because he needed money to keep his studio going, so he was a very simple guy when it came to the finances. He wanted to get paid directly. He didnt want to go through middle men. He just wanted direct compensation for his music. It was because he was so working so hard to continue to make it. It is. You know, i wonder why it is with prince that so many of his hits were really in a compressed time period. Why do you think that is . I want it happened for many artists. Simon garfunkel between 1965 and 1969. You look at the beatles. The stones. Those records. Artists go through the times where commercially theyre right on the spot, but prince prince at that point he had made it commercially. Thats when he wrote his time to do whatever he wanted. Thank you for phoning in. John sykes. Closing bell begins right now. Welcome to cloib dloib, everybody. Im kelly evans here at the new york stock exchange. And im mike san tolli in for bill griffeth. A bit of a pullback, about half a percent in stocks today. The defensive sectors getting hit the harders, those like telecom, utilities, consumer staples. Only health after the bell, we get big earnings, alphabet, microsoft, starbucks, visa, well tell you what to expect. Plus the dean of valuation