Transcripts For CNBC Power Lunch 20160310

Per barrel, decline of 1 . It is all about what happened in europe and all the Market Action after the European Central bank cut key Interest Rates and introduced another round of bond buying and that triggered massive reversals across the market. Look at the euro. 108 at some point. Now it is higher by 1. 9 . A bid to safety here in the United States with the ten year treasury rallying. The yield is 1. 952 . Lets bring in tim seymour of trimanagement. Good to see you. What are we seeing in your view of the massive reversals . An unwinding of all of the positions going into the meeting or is this telling us something more sinister about the markets and what the markets believe and if they believe in mario draghi . I tend not to believe in the sinister. That had people overcommit capital and overreact to certain things. There is a higher euro and lower dollar. What i thought was most interesting is the comment that they dont see the need to reduce rates further and everyone talked about Central Bank Divergence like it is so clear and so obvious. Im not sure it is. And i think you get to a place french industrial output was high northwest four ye years. Maybe europes economy isnt as bad. Thats not what this is about. This is about central bank positioning and going into a fed where people have forgotten about the fed. One thing that is hard to calibrate today is why the dollar is doing what it is doing. I get gold moving higher in some sense and thats helped by a weaker dollar. But the dollar is a little oversold going into the fed. I would be wary of being short of the dollar here. I agree with you 100 . The comments by draghi after he comes out with a bazooka and gives out incredible stimulus, then he tempers it and walks it back from the standpoint of we dont see the need for really bringing rates lower anytime soon. That scared people. I think there has been an expectation trade that sort of been on the tape in general about whether or not the Central Banks are running out of firepower and if he just walks that or takes that essentially off the table, the markets are going to fear that. I think, you know, we looked at it and talked in the show, this was a massive expect trade into the ecb, we talked about selling the valley and the news into today. Into todays event. We got some great, great commentary out of draghi. Draghis statement for one second, it was the pivotal moment, right, where he, as you said, goes through all the bazooka moves and suggests that hes done. I have to assume hes under tremendous pressure from the european banks that are so worried about their profitability as a result of negative rates. I want to go back to the question that melissa posed to tim seymour as well, this reminds me of the day when japan went to negative Interest Rates, and the yen surged. That was not supposed to happen. Draghi is not getting the response he wanted from the euro today by far. This is an extraordinary move for the currency. Is there something bigger at play here beyond short squeeze. Is the market saying Something Like you guys just dont have what it takes and it is not going to work and we need to figure Something Else out. The i think thats exactly it. The efficacy i dont think people have any confidence in and i think thats fair. I think if you look at what the ecb is trying to do, this is a credit bazooka. The next level of the cris this is a seems to be unraveling. People are going after european banks and the one thing i stay say on the other side, if you think the ecb will bay out peripheral nations like greece where they feel they have less of a vested interest, theyre going to bail out ubs and deutsche bank. Dont think that this isnt a shot against speculators, shot against people that think the european banks are not viable. And i think it is a smart thing to do. David, last question to you, we have the fed meeting next week, also boj, by the way. How do you position . I think both of them are going to be specially nonevents. You sell this we pulled back, this was a sell, a classic sell on the news event. You wait for much lower levels now. We can pull back easily 75 to 80 points. Thank you. News alert in the bond market now. U. S. Government borrowing money for 30 years. Rick santelli is tracking the news. A tough week for the government. I gave it a c plus. The highest grade of any of the supply this week. It is technically 29 year 11 month bonds instead of 30. One month ago was the original auction. Were adding into that. And if we look at the yield at auction, 2. 72. A little lower yield than were trading in the one issue market. Amen we didnt tail on this. Thats basically the end of the good news. If you look at bid to cover, 2. 33. Chasing every dollar available to be sold. Thats pretty much average. 60. 9 on indirect. Only the best since december 2015. 20 on direct since october 15. C plus is the grade. We continue to monitor 56 billion supply is in the markets and for mario draghi to spray more liquidity and droughtlike conditions in the market reversal for equities, dont believe me, we touched one whisker away from 10,000 in the dax. Check it out now. Back to you. To dom for a market flash. West star energy, a Utility Company based out in kansas, in topeka. Shares up about 8. 5 on heavier than average volume. This after a bloomberg report saying the company is considering possible Strategic Options including what could be a sale. This according to sources familiar. So, again, michelle, gang, west star energy, Utility Company, perhaps exploring some Strategic Options and we know we have seen some consolidation plays in this particular sector. Back over to you. Thanks, dom. Lets move from europe to strength in the global economy. The baltic dry index is up 40 over the past month. Thats coming off depression levels because it had gotten hammered but it made a tremendous move. It is a sort of thing we have been seeing on top of here on power lunch since the rally began. February 8th, one of the biggest power players in the shipping world watched his stock rise as he spoke. Right here on power lunch. It is up 4 right there. Right there. Since you started talking. See that . Thats the cnbc magic right there. Since that day, herb has seen his stock rise almost 20 . Im in the business of making people rich. For investors today, the big question is can he make their ship come in again . Nordic american tanker ceo Herb Johansen joins us on power lunch. Welcome back. Thank you for inviting me. The yield on your stock, last time you were on, we hammered you because the yield was 17 . We thought the market is screaming that youre going to have to cut that yield. Stock is now rallied at 13 , still pretty darn high. What do you make of the rally in your stock and what we have seen in the sector. People understand what were doing. And we are producing results when it comes to yield and when it comes to total return. Im in the business of wealth creation. And i strongly wish that shareholders including myself shall become wealthy. So comparatively speaking were by far the best company out there along these two dimensions. And the reason is we have only one type of assets. Thats point number one. Point number two, what shall you look for when you look at the company. Look for the people behind. Look for the board. Look for the management. And look at their history of the past. Lets tell everybody what your single asset is. We built a graphic on the wall. They move oil all over the world. And all 26 of them are essentially the same. You dont have variability in your fleet. And oil, because it is so cheap, the volume of it being shipped around the world is actually up, correct . Yes. When oil is cheap, people consume more oil and when they consume more oil, there is more work to do for our ships. What is your daily rate that youre getting paid to move around the world . Between now and between 35 and 40,000 a day and we have thats higher than average. I saw the average is like 26,000 last week. But, you know, we have a large fleet. We are far into the quarter. And it varies from day to day. Longterm only a couple of weeks, it is very, very beneficial. And im very proud of that. Herb, why do you really think your stock is up so much since the last time you came here. A myriad of stocks had massive runs, particularly the stocks down prior to the last month. The next time oil goes lower, your stock gets hit again. The thing is you must be able to explain to people what it is all about. The advantages of having one type of assets. Theyre huge. And it has to do with transparency. It has to do with predictability. It has to do with overdeliver and underpromise. The massive run youve seen in one month is because you explained your Company Better and so investors are on board . Yes, to a large extent, we have produced results over 17 years. So this is nothing new. And ive been with you guys many times. Thats a different story. That is a part. It doesnt help to be clever. If nobody knows about it. You are the chairman of a different company. North american off shore. Nordic american offshore. Thats my nat is rising again sharply as you speak. Nao helps platforms up in the north sea. Yes. Not nearly as good of business right now, correct . Thats true. And that stock hasnt performed nearly as well. What can you tell us about that company in. We own 34 or so of it. I just bought stock last week too. And the Company Bought stock back. 1. 5 million shares. The offshore patch has a difficult situation that we financed up to the mid2020 or early 2020. So four years from now. And, you know, i have to deal with the biggest bank in the world, that is the American Capital market. And we try to transfer the success of on to of nat on to this offshore thing. Nao. Yes. And of course we i wish it buy more ships too in the nao context. I buy them cheaply. And thats what im up to. It is better to buy something cheaply than expensively. If your financial forecast for nat specifically, do you have a price per barrel for oil either brant or wti . I want to understand what you expect would be the perfect price of oil. You mentioned oil is cheap. People use more of it. Thats good for you, you move more around. It also can tell us a single about the global economy. People might think it is in trouble. So what is the perfect price for you. I think that the lower price is good for the world economy. No question. How low . As low as can go or is 26 detrimental in your view . It is volatile. It is good. It is just like a tax relief for you to get a low price of oil. And i, in my view, im very optimistic on the future. There is only one caveat to that that i can see. And that is the Financial Sector may be suffering because they lent so much money to the offshore patch, which may hurt the Financial Sector. That is a worry. But im not worried for nordic american offshore. A lot of european banks lent a lot into shipping, a lot of ships are overlevered, you see people walk ing away from them. Can i ask you about american politics . We have neither side is suddenly a fan of trade or free trade. We have donald trump talking about huge tariff increases, more products will be produced here rather than in china. On the left it is just as bad. What do you make of that . I assume that would be bad for you. What do you see as a foreigner looking at the situation. You know why i even have the American Flag in my logo, i couldnt possibly sound something negative on the u. S. But you are in a way an introvert nation. You have 15 of your gnp is export and import. In our country, small country, we have 40 , 45 . And you could theoretically close the border, you know. And we would be fine. In a way. But we europeans in particular Northern Europe we like america to be the policeman of the world. But now it has been too expensive for you. In afghanistan, in iraq, and all over the place. But it would be very bad if you start with protectionistic measures. I dont believe that donald trump or Hillary Clinton will go for that. Because protectionism, if you look upon this in a historic perspective, protectionism is bad. You have been an open nation, saving europe in the first world war, saving europe in the second world war, building up a europe, so im optimistic about you. My problem is wall street because they do not understand risk. The whole crisis that we had in 2008, that was because wall street did not understand risk. And they priced it wrongly. That might be happening again today. Who knows. Youre right. Yes. So great to have you on. Thanks. Thank you for inviting me. Herb, ceo of north american nordic american tanker. Right. We want to check on the markets. In the midst of a reversal. Just off session lows here. The Dow Jones Industrial average down by 142 points. S p down 15. Nasdaq down 1. 25 . We have the s p down, we have all nine sectors out of ten trading lower, only telecom higher. To Tyler Mathisen live in tampa. Thank you very much. Youre about to witness history. Welcome to tampa. Welcome to elivag restaurant. Tampa is quite a culinary capital. Youre going to witness history. For the first time ever, were going to have lunch on power lunch. You may remember him as the guy who managed the Fidelity Magellan Mutual Fund in the 90s and extraordinarily successful career as a hedge fund manager. Gave that up a while ago and is now one of tampas most prominent business men. With big plans for tampa. When we return, jeff vinik, the owner of the Tampa Bay Lightning, will tell you what he has in mind for tampa, the downtown and what he thinks of the market when power lunch, the show that goes, returns after this. We need to be ready for whatever weather may come our way. My names Scott Strenfel and im a meteorologist at pg e. We make sure that our crews as well as our customers are prepared to how weather may impact their energy. So every single day were monitoring the weather, and when storm events arise our forecast get crews out ahead of the storm to minimize any outages. During storm season we want our customers to be ready and stay safe. Learn how you can be prepared at pge. Com beprepared. Together, were building a better california. Welcome to americas other city by the bay, tampa, sprawling, fast growing, diverse, the tampa st. Petersburg metroplex is home to 3 million people. Once home to a thriving cigar industry, tamm pa is now close no cigars at all. Theyre almost all gone. In their place, a diverse economy. There is tourism, especially at this time of the year when the yankees are in for spring training, but there is also trade. Tampa, not miami, is floridas busiest port, despite the bays average depth of just 12 feet. Financial services thrive. Raymond james is headquartered here. And Jpmorgan Chase and citi employ roughly 9,000. Thats about a thousand fewer than work here for Home Shopping network. At 4. 4 , unemployment is below the national average. So is the cost of living. By 2 or more. According ing ting to trulia, for a house is 175,000. Rent, about 1350 a month for a two bedroom place. Derek jeter, the citys biggest star, may find that a tad tight. At 30,000 square feet, his place on the water dubbed st. Jetersburg is the size of a best buy store. Make him an offer. But start at 12 millioned. Welcome back here in south tampa. Joined by jeff vinik, owner of the Tampa Bay Lightning and one of the citys most prominent business men, relocated here from boston for the nicer weather. Great to see you. Thank you for being here. And thank you for coming to tampa. We welcome power lunch here anymore you want. We even have lunch this time. Awesome. Florida is the political epicenter right now. I dont want to talk about the horse race. You dont have a dog in the fight. But you have to be observing politics and one of the subthemes here has been on both sides, gop and democratic, a bashing of business. Things are bad, bad, bad. It is not working for everybody. Do you see the American Economy that way . Politics, Election Years often do lead to some uncertainty. Were looking at the economy now and im looking at the economy now, it is just fine. Coming out of what was aer have recession, the economy has been growing 2, 2. 5 per year. Despite all the noise, it is still growing 2 , more people have jobs. Hopefully we can get some more wage growth over time. I think well get that. But i think the economy is what you see is what you get. It is fine. Down here in tampa, florida, which i love so much, the economy is doing great. Thats what is going to be my next question. How is tampa doing and why have you made such a big personal bet along with cascade, which is bill Gates Investment vehicle, on redeveloping downtown tampa. What do you see there . I lived in new york for a number of years, i lived in boston for 25 years. I moved myself down here six years ago when i bought the Tampa Bay Lightning. This area is an undiscovered gem. The quality of life here is fantastic. The weather is good. The beaches are good. The people are friendly. Traffic is acceptable. Water, just got all the Natural Resources you would want. But it is like a value stock. It really hasnt been discovered right now business is starting to really take off in this area. And i think were right in the beginning of a bull market for tampa that will last many, many years to come. So you think it is a value play. That has been your history, finding growth at the right pri price. We were talking yesterday, and you said something very interesting to me, that you see over the next decade or so, not just in tampa, but more broadly nationally, a change coming. A change that you said would favor wages over corporate profits. Explain what you mean, why you see it and what the investment implication of that is. Looking out and, again, this is nationwide, what i see in my crystal ball, looking out over five, ten, 20 years, if you think of the entire economic pie, which is leaning toward corporate profits over the last 10, 20, 30 years, i see that shifting toward individuals and toward wages which obviously in this era of inequality will be a good thing. You combine low oil prices, more importantly, disruption that is going on in many industries, which is deflationary, you combine that with sustained low unemployment, i think well get some Wage Inflation but not a lot of overall inflation. We could be looking at 10 to 20 plus very, very good years for consumers. And for individual people, which will be fantastic for this country. I want to get three quick questions in very fast. Number one, you lived through, invested through lots of bubbles. Real estate, oil, technology. You see anything bubblish today . We entered a new longterm bull market and it hasnt. The only way possibly there may be some bubbles might be in pockets of private equity. But Something Like a tampa bay economy, we had a housing bubble here ten years ago, were just emerging from it. The outlook is fantastic. Youre a stock pickers stock picker. But you said to me yesterday that you like indexing now. Why . The mutual fund, the hedge fund, overall Money Management business is much more competitive over time. And it has become really hard for most managers to outperform an index and, yes, for an individual to pick that manager who is going to do extremely well on a sustainable basis, that can be done but in general, it is throwing darts. So i advocate for passive investments in most cases. And finally, we talked about sectors you think might be standouts and you said yesterday to me you dont see that. It is harder to pick the sector. I think it is. Thats why it has been a hard environment to outperform. The 80s was retailers. 90s was the 2010s, we dont really have a tailwind, an economic tailwind in a leadership sector. I think thats why the market has been volatile, why there have been ups and downs along the way. Thats why it is going to be difficult to continue to pick stocks. You say you love it. It is almost your release. Money management. And the Tampa Bay Lightning. Good luck tomorrow night. They play. Broke a lot of new yorkers hearts last fall spring. And good luck to you. Thank you for coming on. Tampa is a great place. I moved here. Quality of life is fantastic and this area is going to boom in the years ahead. People should get in on it. And later, well talk to judy of the university of south florida. You and she a major. Were bringing in more food here, ladies and gentlemen, thank you very much. Well talk to the president of south florida who is working with jeff on a redevelopment project down on the water front. Theyre moving their medical school down there. Back to englewood cliffs. A lovely place. Used to work at tampa bay 10. Enjoy. President Obama Meeting with canadian Prime Minister trudo today. The ned for more inclusion in growth, making sure that it is broadbased, making sure that people are not left behind in a globalized economy. Not to close off borders. Not to pretend somehow we can shut off trade. Free trade also big issue on the campaign trail. Republican candidate donald trump speaking to supporters in maine last week. If we keep free trade the way we have it now, we are not going to have any Companies Left at all. You were stripped with nafta, it was a disaster. Thats what donald trump said. With the carrier plant, what you have to do is you have to be smart, so this isnt free trade. We have to have smart trade. Then a similar message from richard trumka. He writes, nafta made it easier to send jobs to mexico, not trade that is the problem. It is the trade rules that pad profits at the expense of everyday people. Richard trumka joins us now. Good to have you here, sir. Thank you for having me on. I appreciate it. Viewers will look at those two quotes and will assume you and donald trump are on the same page. Are you . On trade, perhaps, we are. But even a Blind Squirrel finds an acorn once in a while. He found the acorn a trade, but on the rest of his policies, hes very, very antiworker and antiunion. Are you concerned, though with his message, which has a lot of appeal to a lot of union members. We have seen the numbers when it comes to the primaries. Hes bringing people over from the democratic side because of this point. Hes successfully tapped into the anger and anxiety that a lot of people have. After four decades of flat wages, inequality growing. Unfortunately, for him, his policy prescription is to double down on all the policies that got us to this position rather than to have things that will get us out and have an economy that really is shared prosperity. Like what . He talks about all the things he wants to do like lower our wages, it is kind of tough for workers to buy into that. I would think you would like it when he says, you know what, you want to manufacture something in china, well put a 40 tariff on it. That would make it for more expensive to manufacture his own season than that would mean manufacturing here instead is the rational. Do you think thats a good idea . We want to bring everybody bit of manufacturing here and mr. Trump should start with his own manufacturing. His ties, shirts and other products are made overseas. He doesnt have to be president to bring those products back. He should probably start by bringing them back and then talk about what a good deal it is and how smart he was to bring it back. That would be helpful rather than having the hypocrisy of sending his products overseas what about another 40 tare e ive. You agree with the idea of a tariff . Im sorry . You agree with the idea of a tariff on goods manufactured overseas in places like china, which is what he wants to do. There are tariffs now. Thats what the free trade agreements are about. About eliminating those tariffs. Theyre not really trade agreements, theyre really finance agreements or investment agreements. They disadvantage workers to the extent he says that, yes, we agree with him. We agree with Bernie Sanders and Hillary Clinton who both oppose tpp. Call it an acorn, call it common beliefs with mr. Trump. How concerned is the aflcio about its members supporting mr. Trump . What are you doing behind the scenes to get those people to vote democrat as opposed to defect to the trump side . Donald trump is a real house of cards. He talks like john wayne, but his policies are really less bold and more bigoted. And so we go to our members and when we give them the facts that he supports right to work, that he supported scott walker, that he thinks carl icahn should be the treasury secretary, that he likes outsourcing, he says thats a good thing and he thinks our wages are too high, when you give them those facts, and then you add in the fact that even on trade he produces his goods overseas rather than here, the house of cards collapses and people come to us and say, youre right. Is the rise of mr. Trump, though, is that a test of the aflcio and your message. You experienced declining memberships and here you are where some of your members are supporting mr. Trump. We have about 30 of our members, 25 of our members that are registered republican. Not all of them are supporting him. Maybe some of them are. Even then when we go to their doors, or their fellow workers, come to them taken talk to them about his record, his record wont withstand scrutiny, it is a house of cards, we have done it, every member that we have talked to, not every, but many, the members that we talked to that were supporting him came back across the bridge and said, yeah, youre right, this is a lot of hot air, we know baloney when we hear it and this is baloney. Youre telling them not to vote for donald trump, who are you telling them to vote for . Well, a lot of our unions have endorsed Hillary Clinton. A lot of youre unions have endorsed Bernie Sanders. All were trying to do is give them the straight facts about every candidate. Who do you support, if you when you walk into your ballot box in a primary, who would you vote for, bernie or Hillary Clinton . You know i cant answer that question. I have my personal preference but im on here as president of the aflcio. Which candidate is best for the which candidate is best for labor . Theyre both good candidates for labor. Theyre equally good. Theyre both good candidates for working people. I believe the Labor Movement will unite behind the candidate that ultimately prevails. Got it. Richard trumka, president of the aflcio, thank you for joining us. Thank you for having me on. Power lunch is back in two. Jake reese, day to feel alive jake reese, day to feel alive jake reese, day to feel alive welcome back to power lunch. We have the 30 year auction at the top of the hour. Santelli gave it a rating of c plus, in my household would be an f. 2. 7 is where 30 years are right now. Were seeing higher yields pretty much across the board, across the yield curve here. Ten year at 1. 938 . Power lunch willing right back. In new york state, we believe tomorrow starts today. All across the state, the economy is growing, with creative new business incentives, and the lowest taxes in decades, attracting the talent and companies of tomorrow. Like in buffalo, where the largest solar gigafactory in the western hemisphere will soon energize the world. And in syracuse, where imagination is in production. Let us help grow your companys tomorrow today at business. Ny. Gov whyour boss . Ork for . Yourself . Your family . Our Financial Advisors are free to realize a plan to fit your familys unique needs. Well listen. Well talk. Well plan. Baird. Hello, everybody. Welcome back to power lunch. Im sue herera. Here is your cnbc news update at this hour. President obama and canadian Prime Minister trudo holding a News Conference on the white house lawn this morning. The president says their countries are strong allies, guided by the same values. As nato allies, we stand united against terrorism. And for the rights of nations like ukraine to determine their own destiny. As leaders at the united nations, we stand up for peace and security and the human rights of all people. A florida mother and gun rights activist is in the hospital after Authorities Say she was shot by her 4yearold son. 31yearold jamie guilt was driving when her son fired it from the back seed. Investigators determined that guilt legally owns the gun. Honda unveiling the First Hydrogen fuel cell vehicle. The automaker says the storage tank can be refilled in three minutes. Cost of the car will be about 67,000 and will be introduced in the u. S. By the end of the year. And get this, out of 8600 noise complaints at Washingtons Reagan National Airport last year, Officials Say a whopping 6500 of them came from the same person. Thats the equivalent of 18 complaints a day. Airport Officials Say theyre working with residents to address the noise issue. They should work with that particular resident. Thats the cnbc news update. Power is back in two. Wow, that was random. Random . No. Its all about understanding patterns. Like the mail guy at 3 12pm every day or jerry getting dumped every third tuesday. Jerry every third tuesday. We have Pattern Recognition Technology on any chart plus over 300 customizable studies to help you anticipate potential price movement. Theres no way to predict that. Td ameritrade. Sometimes they just drop in. Always obvious. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Hate to fly . Check this out. Frustration in flight. A Spirit Airlines brawl between several women going from baltimore to los angeles. Started with complaints about loud music. And then oh, my gosh. Look at this. Talk about inflight entertainment. Well, Spirit Airlines is known for its low fares. A long list of added fees in fact. 10 to print your boarding pass. Extra charges for a carry on, several bucks for bottled water. New legislation could end that all putting a ban on ridiculous extra fees when you fly. Senator ed markey is one of the senators behind this proposal. Great to have you on power lunch. Thank you for joining us. Specifically, this proposal would prohibit airlines from charging fees that are unreasonable or disproportional to the cost of providing the service in question. What does that mean . It sounds a little subjective. What it means is with the dramatic reduction in competition, in the Airline Industry, in america, over the last decade, that it left airlines more free to dramatically increase the fees which they now charge passengers. Thats for bags, for changing a ticket. And so as a result of the reduction in competition, obviously the airlines have more freedom to engage in price increases that dont reflect market forces. And so what senator blumenthal of connecticut and i are asking is for the department of transportation to move in and just set reasonable ground rules for what those prices should be, the fees should be, otherwise sky is the limit. The fees can go as high as the pla planes that are carrying them. We all fly these days. When you look at the breakdown of a 300 ticket and i pulled this information off the website of airlines for america, an Airline Trade group, 21 goes to federal taxes, out of 300 for a ticket. 20 to fuel, 18 to labor, 38 other expenses and 3 to airline profits. Dont the airlines because theyre trying to compete for fares with lower fares, they have to make a profit somehow. So they have got to charge what would you rather have, a higher base ticket price and no extra fees or would you rather choose which fees you want to pay . The airlines as you know have enjoyed a tremendous drop in the cost of jet fuel. Over the last year. It has gone down by upwards of 35 . The cost of the airlines. Thats something that they can pocket as profit unless they return it to consumers in lower prices for the tickets that people buy at airports. I dont think people are saying now theyre seeing a 35 reduction in the price of the tickets that people are paying for the airlines. No. What were saying is this. That we want airlines to be profitable, but for an airline to say that it is 25 to check a bag, 35 to check a second bag, thats 60 additional dollars. You can choose not to bring a bag. It actually makes it easier to travel for some people. Do you what if you dont have an option. What if you have to travel and there is no other airline out of your hometown to go to your destination. What would happen is the ticket price would just be 25 more, it would be more expensive and the price of checking the bag would just be invisible to you. Thats the difference. I think i think what people feel is that theyre in a captive market, there is no competition, they walk up to the desk and theyre told it will be 60 additional dollars to get on this plane and you can go any other way you want, but it is a 3,000 mile trip. You dont have any other way. So they have got you. And they can tip you up side down at the and shake money out of your pocket. What we want is just reasonable limits on what they can charge. Obviously who will decide that, as it occurs in many captive markets across many product lines in our society, of course we have a federal trade commission, of course we have agencies that move in what would be a captive market, utility, setting prices, regulating the prices, is that the way we should look at the Airline Industry . No. I am not saying that. There has to be some rule of reason, otherwise, they can start charging 30. 50. 75 per bag. Per ticket change and so if youre who sets it. If you are going to do that, then what youre saying, what the argument youre making, i hear what youre saying, is there should be no limits on what people have to pay to check bags. There should be no limit on what the airlines can charge. The market will limit it. There is no market. Do you understand . There is a market. You can make choices, yes. You are completely wrong. In many parts of our country, upwards of 75 of all flights are carried just by one carrier. That carrier has such a dominant marketplace control over the market that they can do whatever they want. So you can take at some point people dont fly. We see it in every single product, whether it is cigarettes, whether it is gasoline, the price rises, the Customer Base falls, they dont buy as much. The price that you talk about is a tax, actually. Thats what discovered. Thats not what thats not what im talking about right here. Youre assuming that people can just say im going from boston to l. A. And i have other options other than flying on that airline or have other options to fly from some more remote part of america to get some place. In many instances they dont. The captive market and thats the part of the captive market where the price gauging occurs and all were saying is lets keep it reasonable. Lets not allow it to get even further out of control. Otherwise people are just stuck up. They might as well be told you cant get there by any means because the flight is the only way that people would be able to travel to their destination and the airlines know that. Are you concerned that the knock on effect is airlines will pull out of those remote areas and people will have no choice because they cant make money. The fees are limited going to that hub already. The airlines are under attack were under attack for alleged price fixing. It would be one thing if it was the remote locations where they were doing it. But they also do it at central hubs where they have a 75 control. They dont just do it in remote areas. So, yeah, i wouldnt want people to be pulling out of remote areas, but on the other hand, thats not what their practice is. It is uniform across the country. Whether it is remote or a central city, newark, laguardia, or des moines, theyre still doing the same thing. And it is just time for us to have a big debate in america as to whether or not this is just the honey pot, the sweet spot that theyre able to just say to people, oh, by the way, on top of your ticket, you have to pay all this extra money. And that is just plain wrong. By the way, there are instances where 150 ticket that sold to a passenger three weeks in advance that they now charge 200 in order to cancel that tib cket. You want to control the airlines again. No, no. And then they get to resell the 150 ticket for a profit. Thats double dipping. Taking advantage of that passenger. All were saying is you want to regulate the airlines to death when they im not asking to regulate them to death at all. Im saying in the absence of a marketplace that existed ten or 15 years ago, this consolidation ultimately leads to inability to have anticonsumer practices put in place because competition, darwinian competition is the only way to protect the consumer. Adam smith is spinning in his grave as he sees this consolidation in the marketplace that then puts the consumer at risk. The greatest threat in the wealth of nations is the mo nopization, the concentration of power in a small number of countries. That is what were seeing and all we need to do is just make sure we have a little bit of balance so that we have this discussion about the fees and now being charged indiscriminately. Thank you for joining us. We appreciate it. I misspoke. It was jimmy carter who began deregulation of the airlines. But very much the 70s when we had a regulated airline market. So much more expensive. Airlines to operate as utility and what does that do to their investor zblas much more expensive. It would be ridiculous. A democratic candidate had a lot to say about the impact of student debt on young people. At ally bank, no branches equals great rates. Its a fact. Kind of like vacations equal getting carried away. More proactive selling. What do you think michal . I agree. Lets get out there. Lets meet these people. Man 1 i came as fast as i man 2 this isnt public yet. Man 1 what isnt . Man 2 weve been attacked. Man 1 the network . Man 2 shhhh. Man 1 when did this happen . Man 2 over the last six months. Man 1 how did we miss it . Man 2 we caught it, just not in time. Man 1 who . How . Man 2 not sure, probably offshore, foreign, pros. Man 1 what did they get . Man 2 what didnt they get. Man 1 i need to call mike. Man 2 dont use your phone. Its not just security, its defense. Bae systems. Igoing to clean betteran electthan a manual. Was he said sure. But dont get just any one. Get one inspired by dentists, with a round brush head. Go pro with oralb. Oralbs rounded brush head cups your teeth to break up plaque and rotates to sweep it away. And oralb delivers a clinically proven superior clean versus sonicare diamondclean. My mouth feels super clean oralb. Know youre getting a superior clean. Im never going back to a manual brush. I do believe we should make colleges tuition free. Im going to put a date certain that after a certain number of years you no longer have to pay anything, the government has to quit making money off of lending money to young people to get their education. Welcome back to tampa. Joined by a person who knows a little bit about student debt. The president of the university of south florida, judy. Welcome. Nice to be here. Were delighted to make the acquaintance. I should point out, little known fact about your university, number ten in the country in patents. Absolutely. And your neighbors in that are the university of california, the stanfords, the mits. Move over, everybody. Little known fact. What do you think about the level of student debt in this country. Are your students burdened by it . How are you trying to help them . Whats the fix . It is a very important problem to work with and to solve. Our students are many of them are first generation to come to college, so it is very important that they know how to deal with student debt, but very honestly, it could be from wealthy parents as well, the students dont know how to deal with debt. Are they coppiming out overburdened . The university of south florida, we have not raised fees or tuition for four years. So theyre very it is very stable. But beyond that, every student comes in and must take a course in fiscal responsibility. And we teach them not only that, there are tutoring. So mr. Sanders, who is here in tampa today, at the fair grounds, mrs. Clinton is here today, college should be free, should it be free . Does it cost too much today . It is very difficult for college to be free unless there is the state or the federal government that is going to help pay for it. It is a very large organization. And it does require funding. Lets talk about your students. Couple of quick questions here. Are they in this Election Year as the primary is next tuesday in this are they politically engaged and active . Very interesting, during president ial campaigns, students are very engaged in the politic of what is going on. So, yes. Yes, they are. And rallies are occurring on our campuses by the candidates themselves. Are your students optimistic about their futures . Do they believe theyll live better than their parents . That i dont know. That i dont know. But most of them are very optimistic about their future and theyre very eager to get into the workforce and make a difference. Are they getting jobs . Are they getting the jobs they want and deserve based on their education in. They are getting the jobs. That is something that is very much a part of our public mantra right now, that we have internships, we have experiences so they can go right into the job market. You have kept fees low, tuition credits low, youre a bargain in higher education. Online education is coming in and are you embracing it, is it a disrupter . Youre not worried about Trump University, are you . No, were not worried about Trump University or Trump Institute as it is. Online education. To me it is a complement to what were doing with face to face education. We know that 18 to 22yearolds like to touch each other they want the campus life. But they may be taking an online course because they can take it at anytime of the day or the evening, it is streaming, they can work around their work schedule. Theyre not doing it because it is that much cheaper. No different at all. For those that are working adults, they want their courses online. We appreciate it. My pleasure. Well come back and visit. I have to question, though, the wisdom of giving scott wapner a degree. That was a mistake. Hes history degree. His degree is more valuable today. Big check. The wapner endowed chair. Back to you. He ran out of here. Thank you. Were well off the session lows. The dow is down by three quarters of a percent. The nasdaq, look at this, down 1 . And the s p 500 down by. 6 . We thought the ecd was doing all it could by lowering rates, buying more bonds, more types of bonds, corporate bonds, but they also embarked upon something new that may be the eurozones answer to t. A. R. P. Simon hobbs joins us with that story. The bank feels it needs some sort of Balance Sheet to get the banks to lend them because they have clearly as far as the market is concerned the liquidity problems. What the ecb is saying, look, are for the next four quarters, we will come to you, the banks, well lend you at zero Interest Rates as much money as you like, up to onethird of your eligible Loan Portfolio and if you decide to lend some of that money out, we will give you a cash lump sum. On those loans. Well give you money, if you lend the money out, equivalent to 40 basis points. So, michelle, this is a move to try and make it easier for the banks to get hold of liquidity in an environment where as draghi points out, they have a large number of redemptions due in the bond market and to try to reduce the volatility you had in some bank bonds by bolstering liquidity. What was fascinating today was you saw the banks immediately surge in europe from a relatively low base. Theyre beaten down, they lost a quarter of their value this year. And waves of selling into that bounce, which bought you flat on the session overall, whether this is because people are realizing that the ecb is now writing on the wall, we have a problem with bank liquidity, it is an open question. We have noticed. The reversal is all over the place. They are essentially going to pay banks to lend money. They will lend will lend money to a bank, lets say a billion dollars, and the bank doesnt have to pay back the full billion dollars. They can keep a piece of it. It is an extraordinary measure. Let me rephrase it for you. Lets say it is a billion. It could be half a trillion. It could be equivalent it could be. Lets say it is a billion dollars. Im lending you a billion dollars for free. I may extend that. I may extend that. So, okay, you got your billion dollars. If you decide to lend that billion dollars out, i will give you 40 basis points of that each year as a lump sum. To keep . It is a negative Interest Rate of 40 basis points. It rates go the other interesting thing, this is why the euro has surged, mario draghi said i dont think were going to move lower on rates, hes listening to the banks. But also because he believes these none conventional measures, the type of which i just described to you are more powerful than Interest Rates moving forward. Thats why the euro bounced. No longer in a period of Monetary Policy we have been in for a long time. Good point. Does that make sense . Yes. Thank you. Simon. Thank you. Tyler . Thank you very much. Lets pick up where simon just left off. As we welcome paul riley, the ceo of raymond james. Big corporate presence here. Home base to raymond james. Welcome. Good to have you with us. What do you think of what mr. Draghi did today and how do you think this will play out. I dont think it is a big change. Negative. 3 to negative. 4 . More of a symbol for the European Community that theyre going to keep rates low. Im just not a fan of artificially low Interest Rates. I think you use them shortterm or longterm, you build a bubble, you dont know what it is and you have to undo it some day, i think. Ive been saying that for five years. We dont really know, do we, whether negative Interest Rates achieve the desired result, which is to force capital to work. We dont. And you can even see in our market here, we had a big runup in the market and people could have said it was the Interest Rates. They adjust back to that they think earnings should be and would it be good for your business your company, if Interest Rates in the u. S. Went up a little bit . Does it help you . It helps us and clients. So 100 basis point rise in the overnight rate is worth about 160 million pretax to us, assuming we give 60 of that rise to clients. It is good for clients too. 1 percentage point higher rates. 160 million to us and more to the clients. Where are your clients now in terms of their appetite for risk . Most of them held the course. It is a great thing about having financial advisers. Clients on their own often sell on the low and buy on the highs. During this downturn, i was proud of the advisers clients stayed in the market, got the benefit of the recovery back so far. We had a little more shift to cash, but not a lot more. So i think the clients are concerned, but theyre keeping of course longterm. How is the business performing . There are strong spots, some areas you probably need to work a little bit more. Theyll take some food away, i think. Go ahead, please, splabsolutely. Bring the next dish in. So what is going on there in your business, Investment Banking. Lending, Asset Management, take me through a little quick tour. The banking segment is doing well. Were very conservative lender and even in 09, thats going fine. The Asset Management business is in the private client business is our biggest business and not quite as profitable because market is down and client assets are down. We go down a little bit, but still doing well. And Investment Banking has been the challenge. One week in january without one ipo anywhere in the country. And underridings and secondaries off, and thats affected that business. You see anything changing that . It is getting better. February and march, late february and march has been better than the first part of the year, which is pretty tough. Lets talk a little bit, we had jeff vinik on, who i know you know, who is a brilliant stock picker, active manager. He said surprisingly to me he favors right now for most people that they have a hunk of their assets in indexed or passive funds. What do you think . We believe in come on in, please. We believe in active management. I think jeffs few is for a lot of clients, with smaller prosecute folios, keeping the cost down and keeping it diverse fide, passive types of investments are very good. What do we have here . Tell me what this is. Tomato base soup. Thats great. And there say little panini of some sort. Lovely. Thank you very much. So as you look forward to the next decade, what do you see in the markets . What kinds of returns do you expect investors to get . We always tell investors we still shoot for that 5 to 7 return and markets are better great and youll are dips. We have been into a correction now. Hopefully a correction and well recover. But, you know, for most investors, still having a good chunk of their net worth and longterm equities is a good play. Lets turn quickly to politics. I dont want to ask whether you have a dog in this hunt or not. Is politics affecting or staying the hand of investors in any way . Thats hard to say. There is uncertainty when you watch the debates. And the fact that a number of candidates talked directly about Financial Services needing more regulation and i can tell you the amount of regulation we have in growth is pretty incredible. Despite a firm like ours making money every quarter in 09 and not needing government money. That does affect it affects others in our business. We enjoy having jeff on and ill see ray mamond james stadi where the bucks play. Well see you in a few minutes. Soup looks good. Dig in. See you later. The menu for next hour of power, lacking regulations out there that are hurting Small Business. Will tell you which state could send you to jail for selling a cake. And florida primaries a few days away, the democrats have their debate last night. Tonight, the republicans, well preview that and speaking of florida, tyler will take us behind the scenes and into the kitchen of one of the finest restaurants. All that and much more coming up. At mfs investment management, we believe in the power of active management. By debating our research to find the best investments. By looking at global and local insights to benefit from different points of view. And by consistently breaking apart risk to focus on longterm value. We actively manage with expertise and conviction. So you can invest with more certainty. Mfs. Thats the power of active management. Great day for gold. Lets discuss the next move with the trading nation team. Stacy gilbert, susquehanna, max wolf, manhattan venture partners. Gold has seen a 20 rice this year. What keeps it going at this point, fear . There is a fear in the trade. A situation where people are looking for stores of wealth. They looked to the dollar, we saw that bid up. Looked to accounts, now getting near or above the minimum where zero is a fantasy because you get negative rates, running to where they can. Some of the money is being forced into gold. Stacy, when a what are you s the charts, in terms of positioning. What we see is it is a fan favorite this year. Why ha you have 7. 3. Just to put that in perspective of what we have seen those types of flows in the past, two plus months into the year, 2009. This is notable inflows moving in gold. Just to take the options perspective to it. The gold it is interesting and it is not atypical, but the upside, so what is likelihood we see another 20 upside here in gold . Thats more likely than the probability of seeing gold pull back 20 . It is more favor to the upside for the bigger moves. This is opposite of what we see in the broader markets where a pull back of 20 in the spx is almost 7 to ten times more likely than that jump to the upside. Last point i would highlight is even with the rally here, we can see some profit taking on a day like today where the ecb announcement is out. Gold has a nice little pop here. But last week we started to see the rotation out of u. S. Treasuries and into other safety products. We havent seen that yet in gold. It seems like this is an area that investors like holding particularly on the etf side. Would you buy it here . I would be very cautious about buying it here. If it sells off, i would get back in. This is a commodity off to a best start in 40 years. Cant say that about to many thins things in the commodity space. Government regulations are killing Small Businesses. Wait until you hear some of the rules that states impose before you can sell a cake or braid someones hair. Kate rogers is following that story for us. Were going to tell you how a group of Small Business owners are taking on the wisconsin cake lobby. Well tell you more coming up after the break on power lunch. And now the latest from trading nation. Cnbc. Com and a word from our sponsor. Buy low, sell high, a basic tenet of investing but doesnt have to be done in that order. Since markets go up and down, why not use a strategy that allows you to make money during the down periods. Short selling is a strategy that sometimes worries people because it has potentially unlimited risk. But there are a number of different ways you can hedge that risk. More and more Small Businesses suffer. In wisconsin there is a battle baking over cookies. Kate rogers is in charleston where she told us earlier about terrible regulations imposed on tour guides but, kate what is the story with the cookies . A group of Small Business owners are taking on what they call the states cookie ban. Lisa takes a lot of pride in the cookies and must have s and muf to her guests, but if she wants to sell them, she could wind up in jail for six months. Thats because the state doesnt allow for the sale of home baked goods that vent been prepared in a commercial licensed kitchen. That could cost her 50,000 to install. So she can serve her guests treats, but if they want to buy some, she would be breaking the law. Over the last 20 years, i lost thousands of dollars of income of these muffins that i could be selling with other baked goods to guests as they head home after staying here. Wisconsin does allow for the sale of home prepared items including maple syrup, cider, sauerkraut and pickles. The Nonprofit Law Firm the institute for justice took on the states regulations on behalf of lisa and two other Small Business owners in january. The doj tells us it is rerviewig the claim. They have a cake lobbying group called the Wisconsin Bakers Association and they told me they are in support of this regulation that they do welcome any competition but they believe that all entrepreneurs should be operating on an even and level playing field. You can read a lot more about this as well as that tour guide law you mentioned, and also regulations for african hair braiders in iowa. We have the full story on cnbc. Com. In cider or sauerkraut lobbying association and thats why there are no protective measures around those industries. There is a lobbying and trade group for everything. In 2010, they passed a pickle bill that aaloud fllowed for th of some of the items. You have to clearly label that you made them in a home kitchen and they have not been inspected by regulators. That is so ridiculous. This is great stuff. Thank you. Standing up for the little guy out there who is just trying to make a buck at a Small Business. Thanks, kate. Want to sell a muffin. Come on. Sauerkraut is okay. And pickles. Check on oil now. Were well off the session lows here. We have the final trades for the day coming up next on power lunch. Breakthrough. This morning i read over 4000 articles on leukemia. In less than a second. speaking japanese i can understand euphemisms, idiosyncrasy and complex metaphors. I know every detail of every public Quarterly Report in the last 20 years. And im just getting warmed up. Hello. My name is watson. Together we can outthink the limits of whats possible. Welcome to the cognitive era. Youre an at t Small Business expert . Sure am. My staff could use your help staying in touch with customers. At t can help you stay connected. Am i seeing double . No maam. Our at t buy one get one free makes it easier for your staff to send appointment reminders to your customers. And share promotions on social media . You know it now im seeing dollar signs. You should probably get your eyes checked. Good one babe. Optometry humor. Right now get up to 650 in credits to help you switch to at t. Im sue herera. The u. S. Carried out air strikes that it believes have degraded isis chemicals weapons capabilities. Peter cook says the intelligence for those strikes was gathered from a militant captured by u. S. Commandos. California lawmakers voted to make the nations most populous state the second to raise the smoking age from 18 to 21. Democratic governor jerry brown still must sign off on that measure. The other state to approve, hawaii. Senator mike lee of utah will endorse republican president ial candidate ted cruz later today at an event in miami, thats according to multiple sources. He would become the first member of the senate to back the texas senator. In seoul, googles go playing computer scoring a second consecutive victory against the best human player in the world. It is now one victory away from claiming the Million Dollar prize. Go is an ancient chinese board game much more complex than chess. And the win is considered a milestone in the development of artificial intelligence. Thats the news update this hour. Back to you guys. Thank you, sue herera. Oil market closing for the day. To jackie deangelis. Good afternoon. It looks like well have a close just under 38 a barrel. Crude is moderately lower for the day. A trade driven by technicals now. And we are establishing that were in a new range here towards the upper limit. You see how much equities are dragging, crude isnt on the same level. Some of the sort from the summer driving season approaching, but also from some of the headlines about maybe an emergency opec meeting. We heard about this in march. Doesnt feel like well breakthrough 40 traders tell me at this point absent a catalyst. And they are waiting for something to happen though that would be very key both technically and psychologically. So well keep an eye on the trade. Volatility expected to continue. Back to you. Thank you. Speaking of oil, we have a big show on tap tomorrow. Our own Brian Sullivan is live in the bakken. Power lunch starting at 1 00 p. M. Eastern. A civil war in the republican party, not just over donald trump, but one issue he focus on a lot. Trade. Eamon javers joins us now. It is a huge issue for republicans and also a huge issue for democrats as well. This fascinating schism that were seeing now in both parties, take a listen to how it has been playing out on the democratic side in their debates. Second clinton supported virtually every one of these disastrous trade agreements written by corporate america. Nafta, nafta spofupported by th secretary, cost us 800,000 jobs nationwide, tens of thousands of jobs in the midwest. Donald trump was on cnbc this morning, making similar points to what Bernie Sanders has been saying on the campaign trail. Here is the way donald trump raised it on our air earlier today. You should do an investigation. Free trade means were not taxing each other. You cant have one nation being taxed and the other nation not being taxed. Okay. So, you know, a lot of things wrong and i believe that i will be able to straighten it out. So you know what they say about politics making for strange bed fellos here. We saw that playing out earlier on cnbc. Just within the past hour or so. Richard trumka of the aflcio was on talking about the similarities between the Union Position on trade and what donald trump is saying over in the republican debate. Thats a little awkward for the unions. Here is how trumka explained it. Even a Blind Squirrel finds an acorn once in a while. He found the acorn of trade, but on the rest of his policies hes very, very antiworker and antiunion. Hes successfully tapped into the anger and the anxiety that a lot of people have after four years four decades of flat wages, inequality growing. When you look at this debate, what you see is working class americans who are feeling economic pain who havent seen their Living Standards rise in a long time. Theyre looking for something to blame, trade is right now taking the brunt of that out in the Political Campaign trail and for the establishment that likes free trade, both democrats and republicans here in the beltway, and on wall street, theyre going to need to come up with some argument out there of why free trade actually benefits job creation, benefits wage growth. Were not seeing that play out. They dont articulate very well, it helps to keep prices very low. But thats their job, not ours, right . Thanks so much. Well continue with politics, first, news alert on amazon. What is the latest . Getting reports of widespread outages with regard to amazon. Coms website. Intermittent service disruptions. You go to the website now, there is an error saying we tried to process your request, were working to resolve the problem as soon as possible. We have been told this is affecting mobile websites and mobile app as well for smartphones. Amazon. Com appearing to try to resolve a Service Outage on its website prohibiting users from using it for their shopping needs. Well keep an eye on this. Were not seeing a huge reaction. Sending it back over to you in florida, still, amazon. Com, fairly high profile Service Outage. Back over to you. Back to florida. Where the political stakes could not be higher. It is a winner take all primary on tuesday. This, the third most populous state in the country. What would a night be without a debate. Either a gop or a democrat debate . Tonight, the gop on stage across the state in south florida. What do we expect tonight . We expect a pretty hard hitting debate because donald trump, if hes not slowed down in the next week or so, is going to have a lock on this nomination. Same thing undergoing on the democratic side, democrats had a debate last night. Bernie sanders fresh off his victory over Hillary Clinton in the michigan primary. Tried to build on that. And he made a bit of a pointed reference to Hillary Clintons speeches on wall street, and the threat that he poses to that institution. Take a listen. I am proud that the gentleman who is head of goldman sachs, he didnt give me 225,000 for speaking fees, he said i was dangerous and hes right. I am dangerous for wall street. Hillary clinton countered by saying Bernie Sanders is dangerous to the pocket of every taxpayer because hes promising things that simply cant be paid for in a reasonable cost. Here is her riff on Bernie Sanders. Senator sanders has talked about free college for everybody. Hes talked about universal Single Payer Health care for everybody. And yet when you ask questions as many of us have and more importantly independent experts, it is very hard to get answers. And a lot of the answers say that, you know thrbs , this is o be much more expensive than anything senator sanders is admitting to. This will increase the federal government dramatically and my dad used to say, if it sounds too good to be true, it probably is and we deserve answers about how these programs actually work and how they would be paid for. You can expect the rivals on stage, donald trump to say his message is too good to believe and donald trump has got a lead in florida and ohio, big states that vote next week. Marco rubio desperately trying to hang on, save his candidacy, you can expect him to go after donald trump and ted cruz, the one who has got the most delegates behind donald trump, hes going to try to prosecute that argument, he wants to emerge from march 15th as the only guy left in that race with donald trump and hope a one on one matchup can work for him. Mr. Cruz got an endorsement today from mike lee, senator of utah. They have been allies as i understand it, you know he far better than i, on a couple of issues as i recall. How significant is this and how significant is it that urban meyer, the football coach at ohio state, endorsed mr. Kasich . Well, of those two endorsements, i would say urban meyers endorsement is more beneficial than mike lee for marco rubio for ted cruz. Look, mike lee worked both with ted cruz and with marco rubio, coauthor of rubios tax plan and i think he was probably reading the writing on the wall that marco rubio is having difficulty remaining viable in this race. Had a very bad night on tuesday. If youre john kasich, who is running closer behind donald trump than marco rubio is in florida, the endorsement of a very popular football coach is a real shot in the arm. Dont know how many votes it is going to sway, but you can bet that it was a good day for john kasich to get that endorsement. What are the chances, john, that rubio doesnt perform well tonight, we drop out, a lot of pressure. We look at florida, trumps in the lead, in nearly all the polls, rubio is second. And yet the hurdle for him to get to the nomination is so high, pressure is on him to say, why dont you drop out and give cruz a fighting chance in florida, thats coming from the antitrump people. What are the chances going to happen. I have to take rubio at his word when he says he wont. All of the traditional forces in politics would argue that he would if something amazing doesnt happen on stage tonight. Hes significantly behind. There was a new poll out today showing him down nine to donald trump. That suggests there is life. The fox news poll yesterday showed him way behind. So there are a lot of different forces at play including his future aspirations to be governor of florida. You dont want to be embarrassed in your home state. I think we have got to for the time being take rubio at his word that hes going to stick it out. There is something about going after donald trump, so vigorously in the last debate, back fired on marco rubio. Tonight, do you expect him to be just as vicious. We have seen this is his last chance, last chance to put himself out there. Does he go extra hard on trump or backpedal. He doesnt go hard in the same way. He and town hall with our colleague chuck todd the other night said he regretted how hard he went and the way he went after donald trump. So i wouldnt expect him to repeat that. If he Still Believes that he has a shot to win florida, he will be very aggressive but hell be aggressive on policy, not on personal stuff. Finally. Less coarse would be thank you, john. Coming up next, it is back to tyler and then with a look at the tampa building boom going on there. Power lunch will be right back. E lexus command performance sales event is on. With extraordinary offers on the visionary ls, the generously appointed es and the new, eightpassenger lx. This is the pursuit of perfection. You dont want to live with mom and dad forever, do you . Boo laughs how do i check my credit score . Credit karma. Dont worry, its free. Credit karma. Give yourself some credit. Welcome back to tampa. The hottest lunch spot in the hot neighborhood. Soho in south tampa. Were joined by steven gay of smith and Associates Realty company here to talk about the tampa housing market. We should talk about this salmon blt sandwich, which is ridiculous. It is. Amazing. How is the market here . How fast is it growing . How long are things in the market . Market is hopping now. We have got a total sellers market, inventory levels are extremely low. Balance market has about six months of inventory at any given time. What are people looking for in a residence today. I hear up in new jersey that they want it completely done they want it move in condition, they want the kitchen finished, the bath is new. Exact same thing here. Buyers are looking for a perfect house they can bring their toothbrush too. Location, location, location. School districts are important. Those are all important things. What is coming on the market, new building, new apartments, much . A lot of new apartments going up downtown tampa. 1200 under construction now. In the area of south tampa, where were located now, we have a lot of infill homes where they raise a house in an established neighborhood and build new construction. Lets look at real estate on the market. Lets start with one on davis island or the islands. You want to be a neighbor of derek jete, you might like this who house. Right. Relatively modestly priced. Jeter couldnt fit in there. No. Definitely not. Five times as high or more. This is located right next to the downtown little corridor, davis island, you can see downtown tampa. It is very desirable location. Great finish inside. Too ten minutes from jeters house. Ten blocks. Ten blocks. Lets kick up the heat here as emeril would say to one that goes for north of 2, almost 3. 2. 3 million. This is located in golf view, an area near the country club in tampa. It is a very traditional style house. Very elegant, formal rooms, casual living, dining areas off the side but really high quality home. What is interesting about some of the real estate ive seen here is it feels part of it very old south in a way. Tampa has a very southern feel, just if you look in the hide park area, youll see Historic District where homes are built in the teens and 20s, have the northeastern feel. You see some that are craftsman cottagey kinds of things. L this is one of my favorite homes, midcentury modern sil architecture, two bedrooms in the main house, 3. 6 million, a guest house, air conditioned garage, on. 4 of an acre. Over looking bay shore, one of the most beautiful streets in town. Is that the one just down the street from here . It is a gorgeous promenade, the longest continuous sidewalk in the world. Exactly. Thats it. Got to be proud of that. Definitely proud. Proud being a uva wahoo too. Well meet the chef and the owner of elivage here, which came first, the hotel or the restaurant . Well tell you that and more later. Coming up, an update on amazon. Back to dom chu. It appears amazon. Com is now back up and running. The site is up and running at least for on a widespread basis. We have been told that mobile sites and the mobile apps on smartphones also working, so the Service Outage did not takelong to resolve itself. Were waiting for a comment from amazon. Com about what did happen. But, again, melissa, guys, it appears as though the amazon. Com website and mobile apps are back up and running again. So well see if that lasts for now. Back over to you. Thank you, dom chu. It is not a bird, it is not a plane. It is a giant blimp plane. Jane wells has that story. Im jane wells at lockheed martins skunk works. This is not a bounce house. It is the interior of a new ship theyre building for the commercial market. Part airplane, part blimp, part helicopter. 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Show me funny movies. Watch discovery. Record this. Voila. Remotes you are back. The x1 voice remote is here. X1 customers get your voice remote by visiting xfinty. Com voiceremote. Welcome back. Veil resorts said it had more visitors to its ski resorts and charged them higher prices. The company raising its dividend. It started higher but sliding throughout the day, down by 5 . Canadian solar reporting much better than expected earnings thanks to shipments of solar modules but guidance is weak. Thats hurting the stock, 13 . Chipotle completed cleanup of the restaurant in massachusetts that was shut down because workers got sick. That will be opened today. Lockheed martin up 9 over the past year. Now the company is stepping outside of the cost gone as government contracts and building a hybrid air ship for commercial use. Jane wells is in palm dale, california, to explain what this thing is and what it does. Im back here at universal city. I was at palm dale yesterday. It was fascinating. This is an industry trying to get off the ground to deliver cargo to remote areas, think oil or mining or u. P. S. Or amazon. Look heed martin homes to be first to market with a helium filled craft. Helium, not flammable, part blimp, part wing, part helicopter. We got a rare peek inside to see a small prototype. Lockheed spent a decade figuring out the market for this and is planning on a larger air ship, able to carry 20 metric tons, and the goals to make them even bigger. Eventually we hope to get something that may be as much as a Million Pounds of cargo and at that scale, the cost goes down. We get significantly more competitive. Well be the lowest cost of anything in the air. They built a mockup of the gondola, which can carry 19 passengers and while competitors are budding air ships competitors are building airships to do the same thing, lockheeds version is heavier than air. Heavier in thin air gives the critical function, which is can you handle the aircraft on the ground . Airships by laws of physics are the most efficient and beautiful aircraft to fly. They fly beautifully. But they dont handle well near the ground. They expect to have their first orders announced in the next few weeks for delivery by the end of 2018. They have invested 100 million into this project. Back to you. Sounds so interesting, jane. A lot of older folks will remember the hindenberg and how it exploded in new jersey. Will people get nervous about that . That was hydrogen, that is flammable. This is helium, not flammable. This is whats interesting about this project to me. Lockheed had layoffs and downsing on the defense side, they are having to work in the commercial world bringing the media and hiring a Sales Department to sell a product. This is unheard of out there. So interesting, big change for them. Yep. Jane wells, thanks for that story. Power lunch will be right back. Dont move. In the kitchen here, you cant come to tampa at this time of year without talking a little bit about the yankees. But how about talking to a yankee . Earlier today i talked with mark teixeira. I stick to a budget and im 35 years old and i want my money to last until im 85 years old. It just breaks my heart to see athletes making millions of dollars and losing it within a few years. Mostly equities, bonds . 70 30 equities right now. Im young, longterm investor. I dont mind if theres a dip here or there. Im going to be investor and some bond ladders and a lot of blue chip equities is where i am. Bond ladders, equities, blue chips, this is a guy who knows his stocks and investing as well as he knows how to play first base, mark teixeira. Charming fellow. Were with the man who is the propriety tore. You probably know the heart of the restaurant scene here is burn s steakhouse, its his family heritage. Burns is an iconic place, routinely on the list of the best restaurants. Whats the secret . Its packed every night. With consistency, from our food and our service and people that really care, its a big company but its a Family Business really. 600 to 900 diners meals served every single night, astounding. Sometimes i wonder how we do it each night. Could you ever have imagined . No, i would not have imagined. I dont think my parents knew where it was going to go when it started. One of the most Amazing Things is the wine list. Its not a phonebook but how many are in the collection . One of the great collections of wines in the world . When we reprint our list, every ten months, we go for 6,000 and strive for 6,000 different selections and have about 500,000 bottles in our collection total. 500,000 bottles. I can have wine from 100 years ago . Correct. It is truly amazing, 100,000 bottles in the cellar, working sell ar. At the steakhouse across the street. I want to bring in chad johnson, chad johnson is the executive chef here. Chad, ive got to tell you its almost 3 00, so in our kitchen, its cocktail time. Its 5 00 somewhere. Its called the upper cut, blue berry and bourbon. Its cable, i can have a sip of this. This is an interesting property. It is a restaurant that is the destination and what came first . The concept came together but we joked we have a restaurant with rooms on top. The rooms are always the focus and here the food and beverage. The soup was as good as anything ive ever tasted. Like childhood, Grilled Cheese and tomato soup. And haven also, our producers went to the other night. I like to eat, we serve whatever myself and other chefs are craving. Is the culinary scene in tampa vibrant . Do all of the chefs know one another . Do you share ideas . The culinary scene has grown dramatically over the past five or six years and we like to give each other a hard time and we all play nice in the same sand box. Thank you, so much, chad for hosting us here today. The food kept on coming. Weve done power lunch on 20some years and never served luncheon power lunch except here. Chad, youre not ochocinco. Chad johnson, different one. Melissa and michelle, back to you. That wraps it from the kitchen. Looks like you ate three lunches. At least. We werent counting. Looks delicious. Take a look at the euro, its at 1. 12 as we speak. This is not the reaction mario draghi wanted, just below 1. 12, its been there nearly all day. He did everything the market wanted then some more and even gone as far as to say we will pay banks to lend and cut checks to banks and not getten the reaction he wanted here and i dont know what the explanation is. Some people are saying within the conference afterwards he said you know what, thats it. Weve done all of this and more but that may be it for now. I think what he was saying, i think thats going to be enough. But you know, who knows . I think you remember the day im going to say, sorry to be so repetitive, the yen, japanese go to negative rates and yen surges, that was a problem. Something isnt right in the central banking world and they know it. Meantime, the s p 500 is well off session lows, only do you want a quarter percent right now. This is the second worst performing s p sector year to date. Were talking about politics all throughout the day. Tonight well talk about where the Health Care Industry is putting their money in terms of candidates. That should be an interesting one particularly as a sector continues to be under this political pressure, uncertainty around it and people dont want to touch it. Every day with the debates. Brian in the bakken tomorrow. Meantime closing bell starts right now. Welcome to the closing bell, im sara eisen. Im mike santoli in for bill griffeth. Have Central Banks lost control . Look at the interday move after the European Central Bank Decision this morning, wild and back near the flat line on the dow. We had a 300point swing. What we call a double triple. Double reverse