For investors that techs big run may be running out of steam and fast. But we do begin with the world of daily Fantasy Sports under fire. The new York State Attorney general ordering two of the biggest players in the space to stop accepting bets. Mandy, whether or not you believe daily Fantasy Sports is gambling, Eric Schneiderman says it is and its the illegal variety. Now, as new york states top Law Enforcement official, his word carries a lot of weight and like you said, hes demanded that fan duel and draft kings stop taking wagers within the state. Now, this is the most Important Development in the daily fantasy saga so far just because according to sports economist Patrick Reich at washington louis st. Louis, new york based players make up 10 of this billion dollar industry. Snydermans argument is daily Fantasy Sports or dfs meets the states criteria for gambling and its not like traditional Fantasy Sports where there are weeks of commitment towards an end gold of winning your pool. You get some immediate payout on the daily fantasy side on a more frequent side, that instant gratification argument is used by some to define what gambling is. In response to the demands, draft kings issued a statement saying theyre disappointed with the hasty action taken and that efforts werent made to understand their business adding theyre going to explore all Legal Options available. Ultimately this could just be about the money and whether states will allow daily nafanta if theyre regulated and taxed like lotteries are or horse racing or casino gamblingamblin. We did an informal twitter poll on whether or not the government should regulate daily fantasy. 62 of respond he is said let the games go on. 38 said it should be taxed and regulated. The reason its a big deal is not because its a grand scheme of things, it speaks very much more about the regulatory and Legal Environment today as well as the fiscal condition taxation policies of many states. We should also note theres a fan duel press Conference Today 2 00 p. M. Eastern time. Well monitor and comcast Nbc Universal and nbc sports are investors in fan duel. Tyler, back to you. Dominick, thank you very much. From the iconic event here in washington, were going to keep the conversation going on Fantasy Sports right now. David towel is a cofounder of maglin capital and a former bankruptcy attorney and he joins us now. Mr. Towel, welcome. Good to have you with us. Good afternoon. Take apart the attorney generals allegations here. What do they rest upon . What are the pillars of them . Well, there are three claims that are made in his letter. Beyond the illegality of the enterprise and that goes to the point of whether were talking about skill or luck as it relates to the investing or the betting, theres also claims of false advertising and social economic harm thats being done on the public. So its pretty extensive in terms of its allegations. Which is the one that seems the most threatening to these fantasy sites . Is there one that is more threatening than the others . Clearly the first is. This is a very highstakes game, no pun intended, that were talking about here. Just to give you a sense of context, casino gambling in this country takes in about 35 billion of revenue. Legal Sports Betting takes in about 4 billion of revenue per year. But people estimate that the illegal market for Sports Betting is anywhere between 80 billion and 380 billion, and new york, as dominick pointed out, is the largest state for current customers of fan duel and draft kings, and so, therefore, many other states are looking at whats going on in new york to see how they will proceed on this basis. Youre a lawyer. Is this gambling . I think that it is gambling because of the fact that it is based on very shortterm events that are, frankly, outside of skill parameters and really anything can go ahead and happen, and so, therefore, i think thats where these allegations are able to go ahead and gain traction and i think the new York Attorney general is going to be successful in this. All right. David, thank you very much. David tawil giving us his perspective on Fantasy Sports. Another story were watching, but were not going to leave that one, my friend, and my friend is marcusly mow ne le. Macys shares are getting smacked. Is this a bad sign for retail as we head into the crucial shopping season . Marcus lemonis knows about retail, has some thoughts about a lot of things, and were here at iconic to talk. Lets talk first about Fantasy Sports. You got a thought on it . Well, its the time that makes it feel like gambling. Does that mean if its a week or a month and you dont win your pool for a delayed peer eed per time its less gambling . At the end of the day its gambling. Im afraid the states are now going to start to regulate websites. Are they going to move offshore and the same thing will happen . If people want to spend their money doing that, thats their business. Lets talk about retail, words from a report from macys, jcpenney also. How are you seeing businesses across the country and the propensity of consumers to spend . I looked at some of macys comments around why they think their top line is down. I dont know that im buying all of them. One is its warmer outside to clothes arent selling. Another is intlt tourists arent showing up. The good news is that macys is still offering profitability. I wish at some point in time the Investment Community would focus on the profitability and not just the top line. When you juxtapose it against jcpenney who is boasting yearoveryear sales i dont want to diminish their efforts, the bar was set pretty low. And so i dont want to celebrate any sort of jcpenneys revolution just yet. What is your sense of where consumers are right now . I havent seen any headwind in any business that im involved in at all, whether thats the auto sector or the food sector or the clothing sector. I think what consumers are looking for is an experience when it comes to retail. And so i think what macys needs to do a little bit better if you go into any of their stores is they need to create a little more of an experiential shopping. If you look at the reits in the mall space or simon properties, a lot of them are struggling in their Mall Properties but doing well with their sort of street sort of environment. So anything thats sort of open malls where theres restaurants and street atmospheres and theres activities, theyre doing a lot better because theyre able to lure families to more of a family atmosphere instead of just a box. One of the things were talking about here at iconic, which is a program for entrepreneurs. You will be on stage in a couple of hours, and one of the sort battles that was joined this morning between kevin oleary of shark tank and just moments ago kenneth cole of Kenneth Cole Productions was the idea kenneth believes businesses need a soul, an inner purpose beyond merely making money. Theres a smile on your face, mr. Lemonis. That kevin doesnt see it that way. The purpose is to make money for shareholders and if it throws off money that you the owner wants to donate later, fine. You know how i feel about it. Every Business Needs to have a culture about it, and the people who work there need to know what theyre working for, not just a paycheck and the overall business, particularly with millennials today, they want to buy from people that have purpose that are doing something good. And so were going to see life is good later. Were going to meet a lot of other Different Companies while were here. I think kevin oleary really had it wrong and i have always told him this. He believes its a dollars and cents zero sum game and thats it. I think kevin doesnt understand retail because the retail environment is very different. Consumers want to walk into a store, they want to transact with somebody that has some sort of belief in what theyre selling and a belief of the company that theyre working for. You look in the upper sort of northeastern, you look at wegmans, just a grocery store, right . Its an experience. But it starts from danny wegman setting the culture. Theres a reason that kip has a great company. He sets a culture. Theres a reason that they set a culture. You just answered some questions. When we come back, youll start asking questions. Im going to start asking. Thank goodness youre here. Great to have you here, marcus, as always. Mandy, back to you. Well get back to the iconic conference in a second. In the meantime, seema mody is joining us with a market flash. Good afternoon. All eyes on the industrials. Names like motorola, act vision blizzard and Texas Instruments all up 2 or so. Xerox though leading the way. Nearing session highs and looking for its best day since early september. For now, mandy, back to you. Thank you very much, seema. Turning to the overseas markets, global stocks are up as investors shift their focus to key Economic Indicators out of china. Live from the conference in boston, william priest with 43 billion in assets. Great to see you today, william. Thank you very much for your time. What do you think 2016 is going to be defined by . I think 2016 is going to be defined by an acceptance of the fact that youre going to have lower growth than people expect. 2 is 4 as far as the developed markets are concerned. Its probably the best real gdp growth you can hope for in the developed world. Remember, the global gdp is a function of two things, growth in the workplace and growth in productivity. The sum of those two things are likely to sum to something 2 in the developed market and less so in other parts of the world. Does lower growth economically speaking, william, have to mean lower stock market returns or potentially because of lower growth we might see the unleashing of further stimulus in places like europe and japan and that might actually help global stock market returns . Well, i actually think it has two things going for it. Even though you have lower real growth, it doesnt mean cash flows are going to be that much lower, and at the end of the day there are only five things you can do with a dollar of Free Cash Flow. You can pay a dividend, buy back stock, pay down debt, make an acquisition, or reinvest in your business. Of those five choices, two are going to dominate. Given the low growth, what youre going to see is very much less Capital Spending than one might have wished for but youre going to see a continuation of lots of m a activity. By the same token, given that Free Cash Flow levels are likely to stay pretty high in our view, you will also see a continued growth rate of what we call shareholder yield and that will be cash dividends, share buybacks and relevant debt pay downs. Remember, when you buy stocks, the stock yields have a growth rate associated with them. So stocks should beat bonds. You will have to live with more volatility but if youre Holding Period is measured in years, youll be just fine. Learn to live with more volatility. William, thank you very much for joining us with some interesting ideas. Lets head back over to tyler mathisen, my good friend and colleague at iconic. Ty . All right, mandy. Thank you very much. In my hometown of washington, d. C. , iconic, the third and final stop this year of the iconic tour with cnbc and inc. Magazine. When we come back, well talk to an inspiring entrepreneur who has joined us prior occasions at iconic, burt jacobs. Life is good, very good. Youre watching cnbc, first in business worldwide. vo what does the world run on . It runs on optimism. Its what sparks ideas. Moves the world forward. Invest with those who see the world as unstoppable. Who have the curiosity to look beyond the expected and the conviction to be in it for the long term. Oppenheimerfunds believes thats the right way to invest. In this big, bold, beautiful world. Welcome back to power lunch. In the brewing word, inbev agreeing to buy miller. Tell its majority take to molson coors. All three are moving higher in trade today. Microsoft also getting a boost to the tune of 1 with a raise in the price target to 60 from 54. Its also maintaining its outperform rating with the firm saying the tone of microsoft businesses is the best its been since the 1990s. And a big day for apple. Its larger ipad goes on sale and its Music Service is available for andrew devices. Its currently sitting flat with an upside buy at 117. Lets get another market flash with seema. Shares of sun edison are getting slammed for a second day down 15 after posting a bigger than expected quarterly loss yesterday prompting a slew of rating and price target cuts. Solar city and first solar are also trading lower perhaps in sympathy, between 2 and 5 . Thank you very much, seema. Well get back to you shortly. In the meantime lets head further south down the east coast where tyler is joining us from the iconic conference. We have our own little music, our own little stinger intro there. Mandy, thank you very much. Joined now by burt jacobs, one of the partners, one of the founders of life is good, an Apparel Company that does 100 million in sales, began from the back of a truck, a van, with what . A 200 stake . 78. 78 is how you started to 100 million in sales. We were just talking, marcus and i, about retail. How do you see retail this year . You know, its tough. Its a tough market, and i think that too many retailers are talking about how to engage and create community but are still just hanging things in the window and hoping they have the right brands. So we really need to make changes and were trying ourselves in that area as well. I think that speaks to what we just talked about, that in order for a retailer to separate themselves, they need to create some sort of experience, engage with people in the community. Thats right. So thats really how you started your brand over the years. Talk to us a little bit about what you do differently to engage customers visually or other ways . Sure. We didnt in the beginning, we didnt know any better. We didnt have any traditional advertising and we bumped into letters and emails from customers that were facing really difficult things. So we started a little local pumpkin festival and that became a series of National Pumpkin festivals which led to life is good music festivals. Hose have been as important to our company as anything. What were trying to do now is bridge the gap from being Apparel Company that has some cool events to 365 being a hub of optimism, a place where people can go to get good news, to share good news, to share good stories, to feel good about being a human being. Its as much about mee yotiemotl wellness. Did you ever feel like the company fell off the rails and kind of lost sight of that . I know you and your brother are getting back in the van or getting back on the road. Are you doing that because you felt like you lost your way for a minute . Yes and no. So, no, we didnt lose what we were trying to do. From an execution standpoint we did. I think the growth just caused us to, you know, go through that phase in the last few years where weve been a typical kind of machine making a lot of tshirts and putting the right messages on them. So the road trip we just did that you mentioned, it really put us back in touch directly with our customers and gave us a lot of ideas about how to grow the business and a lot of that has to do with dialogue, not a monologue, enabling our customers to design, to create. On the nonprofit side as well as the for profit size. On the fundraising side we have crowd rise challenges out there. Were working with 100 different charities. Its great for the nonprofit side. It also amps up the touch points for the forprofit side. One of the things we see is how do they create that culture for the long term. With you and your brother really being the face of the business, how do you think about succession planning and how to carry that brand for the next generation . How does that Company Survive . The good thing is while i think weve been good founders to get from a to b, were really not the operators to take this from 100 million to 1 billionplus and tsimmes oth brand have little to do with my brother and i. Theyre values like simplicity theyll be worth a lot 100 years from now. We were talking about people like kevin oleary who said i dont think that sort of purpose is necessary in business. But when you we welcome the openness on it. We just have different views. You say you may not be the guys to take it from 100 million to 1 billion, implicit in that is maybe there is someone who is. Are you open to selling to a gap or not really. Thats not our strategy right now. Our strategy is to bring in talent thats smarter, faster, more experienced than we are. Well still play a role as the founders of the business and as creative talent on the team but we have no ego about being the one running the business. So were looking for a president right now. Its an open position. We have a great friend who is an interim president. I tell you the reason i brought it up. In companies today and weve dealt with this, when is the right time for the founder to sort of step aside and know theres somebody better . So you see this sort of dichotomy between ego and longevity and ego usually ends up in the grave and the longevity is being able to be humble about it. Telling investors or customers that we dont have all the answers. That i think it can work. More importantly i think its necessary. I think about it even in my own business. At the same time, too, the president is going to come in and have a lot of autonomy but i dont want to make it seem like i want to step down no. He will have to report to me. We have to leave it there. Bert, good to be with you. Thanks, guys. Marcus well be back with you in a minute. Meanwhile, back to headquarters and mandy. Thanks, ty. So where are individu