Plus, there are fewer than 50 days until christmas and wall street is concerned about a retail apocalypse. We have the details about that, and later, its been choppy waters for Royal Caribbean the stock is cruising higher the ce will be here for an exclusive interview. Power lunch starts right now welcome toll power lunch. Im melissa lee. The major averages are recovering somewhat after falling in the red on reports of a delayed trade deal we have the dow and the s p 500 marginally higher right now. The nasdaq is down by a third of a the russell taking it the hardest. Lets get over to bob pisani for more theres been reports theres no clear deal yet over the terms of a phase one deal with china, or even whether president xi is going to come to the table on the deal industrials, theres your classic one, caterpillar, 3m, united technologies, theyre all down a bit today some of the semiconductors like micron also a little weaker as you mentioned, coming off their lows we had a buildup in crude. Oil stocks were already weak they had a 5 rally in the past few days, thats helped a lot for the market overall out of favor consumer stocks, tyson, smuckers, colgate, kimberly clark, you see all higher today lets call this a pause in the rotation, Consumer Staples were strong in the middle of the year, and theyre well off their highs. Remember the old market leaders, starbucks, mcdonalds disney, nike those stocks have been down 6, 7, 8, 9 robert and whether you want to believe it or not the countdown to christmas is on 49 days to go, and ubs is out with a bit of a holiday warning saying the online takeover may leave many malls empty this season also with us is liz dunn, founder and ceo of pro form ma since you wrote the report, you get to go first. This is a story weve heard before, its going to be the end of mall retail, the end of Department Stores and yet a plucky few seem to persist were not saying its the end of malls, right . Were going to continue to see consumers spend more of their christmas dollars online the disruption weve seen, we havent reached equilibrium between stores and online. You see pressure on companies that are really dependent on brick and mortar retail. Are there some retail stores, physical stores that are going to do better than others in your view, and what are the differentiators between the ones that will and the ones that wont . I think the stores that can offer some unique experience, that you cant get online. If youve been to the nike store on fifth avenue. Its a tremendous experience, you can try things and see things and learn about the product in a new way use your hands and touch things, you cant do that online those types of stores that you cant replicate online, are going to have more success liz, you look to a pretty good retail season i dont disagree the mall is not a place to be. Most of the retailers are under significant pressure you have to have product, service, value and experience. And many of the mall retailers dont have anything differentiated on that front i think there are some brick and mortar retailers that are going to do quite well lit me guess, that would be a target that would be a walmart that mighting a tjx . Yeah, target and malwart between their online and offline presence and that multichannel experience they keep pushing the offer, the type of things theyre offering now in walmarts offering a subscription for grocery delivery things like that, you can get things same day, next day and then tjx is really value end product. Not so much the multichannel integration. A lot of maloperators are looking to put in things like gyms and sing mas. Is that going to help at all . You yourself in your report said that a lot of people are going to the malls for the food court. They get hungry, maybe theyll pick something up at the same time thats the idea, as long as you can get people to the mall theyre going to buy something people buy things because theyre there. They may not have planned on it. What we see in our research, people do want to have things to do, they might want to go to the food court they might just want to hang out with their friends, thats what theyre saying if a mall can come up with ways to bring people together, whether its a gym or some type of activity that draws them in, thats a good thing. Id like to get both of your takes on this American Dream experience mall up near the meadowlands or whats now known as met life stadium. Which is ultimately an Amusement Park that has some stores att h attached to it you got it right. People are talking about this American Dream its about 4 million square feet its not really a mall think of it as Universal Studios with super high end stores. Its the kind of place when you walk in youre going to say wow. Ive never seen anything like this youve been in it yes any Retail Destination that can do that, theyre going to have suck sis. Not a lot of malls have that wow factor when you walk in. This place does. I would say the last thing new jersey needs is another mall but this is not another mall new jersey is the most overmalled state in the country. This is an experience, and its really about driving people to the destination. I was talking to a retailer last week that said they have a store at disney world i believe that does 10,000 per square foot, which is phenomenal and multiple of any other store they have its that kind of thing, if you can get people in this engaged experience where theres product thats relevant, you know, maybe theyll transact but its not going to increase the overall spend in new jersey malldom its going to come from somewhere else i want to get your take on the reuters report the offer was previously reported at 120 a share theyre going to ask for 140 is that realistic . I mean, do you think that they would be willing to bite i hadnt heard the 140 yet, i had heard that they rejected the 120. I think the stock where it traded immediately when this was announced showed that the market believes that the company is worth more and i think that lmh the deal makes sense, they should raise their offer. I cant say if 140 is the right number, but 120 was too low. Were going to leave it there, guys. I have a feeling well see both of you between now and christmas. At least in the next 48 days. Thank you very much we have a news alert on Facebook Facebook has been investig e investigated by californias Attorney Generals Office for 18 months right now californias ag Javier Becerra is holding a briefing, he said in a fileding earlier today, facebook has failed to comply with its subpoenas. Those include practices around privacy, disclosures and Third Party Access to user data, the ags office looking to understand whether the company has violated any laws. Theyre asking the San Francisco superior court to require facebook to comply with its subpoenas for additional documents. We have reached out to facebook for comment. And have not heard back yet. You see here that that press briefing is ongoing, facebook shares trading down at 1 . Is this part of the investigation, julia where there are multiple state ags joining together . This is separate. There are i believe 47 state ags who have joined together for an investigation into facebook california was not part of that, the California Attorney generals have been asked if they were participating. They said no comment and now we are learning that the California Attorney general has been looking into facebooks Business Practices for 18 months now. And he just said in this press briefing, the reason why hes talking about it now is because facebook has not complied with their request for data and now theyre looking to get facebook to be effectively forced to hand over those documents theyre looking for. Keep us posted. Thank you, julia borstyn a number of big names are sitting out the rally, is it time to start buying the laggards. Shares of uber sinking to a record low today well talk to an early investor ouwh hs innext giving one. This is unbelievable it really is. The lexus december to rembember sales event lease the 2020 rx 350 all wheel drive for 419 a month for 27 months. 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The force behind some of todays biggest unicorns led to soft banks first quarterly loss in 14 years higher on the spectrum is uber at deal book today the ceo made sure to say were very different than wework. Its another bet that has gone from 76 billion valuation, to 45 billion in the Public Market we asked the ceo, whats happened to the unicorns everything going on around us, the global landscape, has fundamentally changed over the past two years i think the appetite for the unknown and high risk and Public Markets has gone down. That has consequences. Now, others may argue that markets have been good to some unicorns there are others on the other end 69 spectrum. Also a deal book startups that are profitable or closer to the benchmark with more solid Business Models they may look less like donkeys and more like unicorns air bnbp will be an important marker for that. Should the early investors take their gains and run or does uber have a prosperous road ahead lets ask one. Steve jiang, great to have you with us. Did you sell any shares of uber today . No, i did not do you plan on selling them im excited for the long term long term with any sort of early venture, capital investment, theres always the distribution schedule theres always a diversification schedule after going public. Thats pretty normal for all investors, and so i think myself and other investors will constantly do that over time but i think this would be not a good time to do that i think that the stock is undervalued. I think the company went public in an environment where there was a lot of macro issues as well as an argument between private tech markets, investor markets. I think the valuation argument is still playing out on the other side. Looking at the company itself, its going through a right of passage. Once you go public theres a fitness on what the market wants. To understand the business and model it out and really get into the details, and theres also a lockup expiration all these things are normal things that happen to Public Companies like facebook or twitter. Youre seeing that play out now. Why do you think theres a disconnect between what private investors were willing to hear in terms of the information, the metrics, et cetera and what the Public Market investors wanted why was there a gap . I think that in the private markets we had an influx of Venture Capital coming from a lot of late stage or even some public Institutional Capital i think in that mindset there was an idea that you could do sort of a pseudo ipo at these late stages and i think valuations were the entire market was optimistic and aggressive about it. I think the macro climate changed this year, especially this summer with all Companies Across tech getting hit. I think theres been a Public Opinion sway about really scrutinizing what are these public tech companies. In the midst of all of the social, political and economic upheaval in the markets, private valuations from last year or the year before that compared to Public Market valuations this year, theres a disconnect i think thats going to get played out and thats going to normalize like it does in the markets. And i think uber is going to be a company to watch there and theyre doing the right thing. And i think in this last earnings call, they showed more metrics so that each Business Unit could be understood theyre issuing 30 year over year growth. The company is growing in a healthy way. Theyre making the most comprehensive investment in new technologies such as uber elevate. Uber freight, uber health. And they have the Largest International expanse in terms of market share. They have significant investment in didi and grab in Southeast Asia theyre the Large Global Network in ride sharing as well as customer base. Im holding for the long term. Quick question if i might has whats happened to some of these former unicorns, is it going to change the appetite for these companies to go public why would they do it if they hit a banana peel when they do i think its hard to predict what the overall Global Market will be doing. We at ventures, we invest so early as the first institutional fun money startups. A lot of these things play out over 8 to 15 years when youre ready, youre ready. When you need to go public because of shareholder frameworks and the capital needed and the ability to create liquidity for your investors, you just you should be able to be in the fitness as a company to go public regardless of those markets theres some educations the Lessons Learned might be figure out what the metrics are that the market wants in the Public Markets before going public some of the other things too, may be look at direct listings in situations where you may not need a large sum of capitol up front. Uber did the right thing in doing an ipo, now they have 12. 7 billion in cash investments. Theyre also the leader there zblo globally to be able to do that i think a lot of new factors from this year are going into the thought process in an ipo. Love that blue bottle of coffee i had one across the street from where youre sitting one of our portfolio investme investments. Its good coffee. Thank you very much. Winnebago is holding an Investor Conference in new york. Frank holland is there hey there winnebago is known for its mobil homes like this. They recorded a record profit, the driver of all that was towables like these over here. Were going to hear from the ceo of winnebago about the companys stock succs d nser enngesancoum someone i can trust. impact, click who is with me for the longterm. Who understands im dealing with lives, not only livelihoods. That in order to help people, i need more than products, i need Quality Support and insights. 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Had a chance to speak with the winnebago ceo. Frank . Thats salutely right shares rising more than 1 this year. The company reporting record profit slumping 18 the companys higher margin lower priced towables. Those have really been the driver reporting 6 growth winnebago holding its investor day here showing off the latest models we also spoke to ceo michael happy. He says the companys 2019 performance shows that recession fears are likely overblown the weight of the American Economy seems to be now a little bit disproportionately on the shoulders of the