Smell the fire from here. We are about 15 miles south of Fort Mcmurray. The winds have changed making these masks necessary. We also have developments from the oilsands just north of Fort Mcmurray, rear learning that reuters that Conoco Phillips is the latest company to shut some of its operations in the region and learning from Canadian Press that oilsands executives are worried that the wildfire could create gaps in the northern alberta power grid. That would lead to more closures of operations in the region. This is a developing story. Officials say that the situation and conditions remain extreme and winds are helping to spread the blaze. Still we are about 15 miles south of fort muck murray where the fire began. Well continue to monitor. Woo currently on highway 63 i think were having trouble with her mike. Thank you. That sparking a big reaction in the oil markets. We are actually off the lows of the session. What needs to be ton to contain that massive blaze . Joining us on the phone is chief tom porter, who heads the California Department of Fire Protection protection in the southern region. Let me start with a random question, am i wrong . Or are they fires just getting bigger every year . Thats a very good observation. Let me first say, our hards here in california and fire service are with those in alberta and Fort Mcmurray. Were really concerned for everything thats going on up there. As you stated, fires have been growing. We have seen in the last ten years, firing in california, texas, oregon, washington, idaho, and now alberta, really, really massive proportion. Why is that . Why is that, do you think . Were seeing the effects of a change in climate. Were seeing fire seasons grows in length, starting earlier and ending later. These are condition that is our generation and probably several generations prior to us have never seen. I guess the most important thing, if you are unfortunate enough to be caught in the line of fire quite literally is to heed the calls by the fire officials to evacuate and evacuate early. The last thing you want to do, right, is hang out . Until the last minute . Absolutely. When Evacuation Orders come, thats a serious order. What we really want people to do, and unfortunately were a bit further along the line in alberta, but what we like people to do is be ready and be set, and then go. Ready means have a plan, have all of your important papers, your medications, dog food, cats, other animals, have a plan, and then set means when you see smoke in the air get prepared to leave. When that Evacuation Order comes, we need you to go right away, not wait around. Were seeing that the evacuation times or the time that fire is burning into evacuation areas is shortening. So thats one of the things were trying to do is really get out ahead of these fires and make sure people are out of their way, so firefighters can come in and do what they can and fight the fire without impeding their progress by running into traffic jams and firefighters could be impeded as people try to flee. Lets talk about the strategy as a firefighter that one employs in a situation like this, are you actually trying to put the fire out or trying to redirect it into areas where they might be less fuel for the fire to consume . Yes. In these massive fires, there is little that we can do at what we cause the head of the fire, where the growth is extreme we tend ton people out thor areas and focus our amendments on areas of the fire that is less intense. We do that because of the wind shifts. As weve seen in alberta, theres been wind shifts, and when we want to make an attack where a fire is of a size a proportion that we can make an effective attack on it. It was truly amazing. I happened to be in seattle last summer when the fires were burning way east of seattle, by 100 or 150 miles, you could see and smell the smoke in the air just because of the way the winds were blowing. On the next day as the winds changed, it moves in a completely different direction. Its a very unpredictable thing, isnt it, thom . Very much. We canlooking at the fuels and anticipate where fires were gro absent of wind or slope kind of effects, but when the wind kind of shifts on us, that really pushes fire in all different directions, and weather is something that we watch very close closely throughout an eye vent. Thank you, chief. Thom porter in southern california, and like you, we wish the people out there the very best and safest. The ongoing strike in verizon, its been nearly a month, the slow down of about 2 in that time. Today protesters demonstrated outside of the companys annual meeting in albuquerque new mexico, our own jane wells is there with more. Jane . Reporter yeah, michelle, veld different from outside briefly inside all the directors were reelected, the compensation packages approved. All the shareholders proposals were voted down, including one to separate the chairman and ceo roles, another to require shareholders approval for socalled golden parachute severance packages, as verizon management left the east coast to descend on albuquerque, are things sully breaking bad . [ chanting ] the unions representing the 30,000 members claimed to be holding 400 protests around the country today, including the large one here. The main Sticking Point isnt pay or health care, but verizon wants the flexibility to move customer calls to call centers outside regional center. The union says that means moving jobs overseas. There appears to be no movement there. Were actually concerned about the future of the company. We they its good for the public and good for the company to invest in good jobs, to business fios, the highspeed broadband product, instead of spending 8 billion on yaw hughes which is a failed brand. I did speak off camera with the ceo who said they have a nondisclosure agreement and are in the second round, but cant say anything about it, because they just dont have enough data, quote. And more than 1300 have crossed the picket line to go back to work. Jane wells, thanks very much the company said ted make a half million cars than originally forecast, then on the Conference Call, he raised the bar even more, forecasting a million vehicles annually by 20 to. Thats my best guess, that for half a million in 2018, and sort of riverly 50 ish growth from there, then its probably around a million in 2020. Needing some additional capital, so that could be what is weighing on the stock today. Sanofi, saying it may raise the ovr. The stock is you can abouting the trend in the past month alone. Can m a by a lifesaver for biotech . Guys, great to have you with us. Im going to start out with you. There does seem to be so many reports out there. Whether its reuters city saying that astrazeneca could be a suitor. I think they are going to be acquired. I think its just a matter of time and price. Sano sanofi, if theyre serious, i would say that they should raise their bid. Weve been in print saying that, you know, we could justify a 70plus dollar valuation on the company just based on their lead drug for prostate cancer, and they also have a wonderful pipeline, so i think theres a higher bid to come. Is this a specific case in the center, do you think theres more deals to come . Mercks ceo saying that theyre specifically looking for more deals, but theyre not looking for consolidation deals, though they would be open to a biggest deal than the cube is last year. Right. I think this is he specifically med i vation. As far as were concerned the laterstage assets are more likely to be acquired, so we are picking through the rubble of biotech toss if there ares in latestage companies that have have you found any . Were still looking. I should say were spending a lot of time those without regulatory risk, or with Clinical Trial risk, i should say. Once you finish a Clinical Trial, assuming theres no terrible side effects and it works, youre likely to get approved. Thats where were focusing our attention in the biotech space, though i think medical devices are more likely as is sector to do well than biotech. Do you think it would be m a that helps the sector out of its funk . I hope so. Is the sector undervalued right now . We think the largecap stocks are close to historic low. Such as . But theyre relatively attractive on a valuation basis by the way we track it. I would say the one dysfunction between the desire and the actual realize sag of m a is the bull market of 2013 to 2015, where managements and boards saw their stocks at, you know, 40, 50 a share. But you dont have stock as currency to buy another stock . Yeah, the prices are in the single digits, and everybody remembers the salad days when they were 40 and 50, which maybe tripled the current market cap, so thats the real Sticking Point but they generate a lot of cash. Cant they tap the debt markets to find a deal if they really, really wanted to do a deal . Yeah, they could, but again, like mike said, a lot of these boards are anchored to price far far away, and so if they dont want to sell, the only option really is to go hostile. I dont really detect an appetite on the part of big farmo for hostile transactions. I think they would rather by friendly. I think there will be an increase in deal activity after the election once we have gotten past some of this. Yeah, i agree with lester. A lot of questions of the managements of boy Tech Companies during the First Quarter asking specifically will you go hostile . Pretty much everybody was begging off of that. Going to leave it there. Thank you for joining us. Melissa, i have a question. In brazil, it became a proxy for the election, and i wonder if the biotech index which got hit hard this week, is that a reflection of the presumptive nominee being Hillary Clinton and donald trump . I wonder if it starts to trade exclusively on the expectations about whether or not Hillary Clinton will be president . I think thats a difficult call to make. We have seen it take a tumble when the candidates started to talk about price controls, what is it, last summer . Right. The decline has extended ever since. I dont know if its if you take a look at the chart, its been a pretty depressed chart. Right. I wonder if that means more and more people thinks she might win. Expect for the fact that donald trump, we dont know where he stands at all on this. On a lot of things. Right. That would be even perhaps a bigger wild card out there. Low Interest Rate guy. Thats true. Low Interest Rate. Very different things. Very different. All right. In the meantime were coming up amazon a multitrillion Dollar Company . A big Silicon Valley investor says yes. Do the analysts agree . Well talk about that, plus donald trump is a businessman, but will business get behind him . What ceos think about the primpive nominee. Were back in two. Welcome back. Im tyler mathisen, along with michelle carusocabrera. Michelle lee is also in the house. Americas top ceos are all across the municipal in terms of support. In just the past 24 hours billionaires barry diller and spoke very candidly about mr. Trump. Theres nobody ive ever known in politics, ever that has risen to national i mean, to the presidency that was actually of evil washington. I think hes going to the the president. Whoever he has around him will be people who will help get things done. Well, there you would see a bit of a division. Lets talk about it with sydney final stein at dartmouth, his book is called request super bosses. And on theie ignatius two of the best Business Schools in the country represented here. You know six or seven years ago president obama was roundly criticized for poisoning the well against business, for using a phrase fat cats in referring to bankers. Mr. Trump, as he speaks about certain businesses hack even more pointed, calling out those businesses, whether its carrier air conditioners or caterpillar by name, is mr. Trump going to be accepted by Business Ceos if he so pointedly criticizes companies by name . I think that ceos dont have much of a choice. If it happens to be a President Trump theyll have to deal with him. I find it fascinating with the clip of barry diller to actually say what he said in public, that is really something. But the truth is they have to deal with him, have to work with him somehow, and president obama was really criticized tremendously for that. Somehow candidate trump is not getting criticized quite the same way. Why do you think that is . We have a teflon ceo in Ronald Reagan a while ago, and people are saying maybe well have the second coming. The teflon part is sticking. Otty ignatius, he has many ideas that mike cause problems for lots of business. 35 tariffs on goods made outside the United States, criticizing Companies Like apple. Can he be a business friendly president . I think we dont know. I think we dont know very much about donald trump. At one point there was a sense to support trump was to fail a litmus test, that history would we have six months before this election. I think the questions you are asking will disappear, because he is the nominee, representing the republican party. He may well this thing. I think people will adapt and find ways to work. Some ceos will support him, some wont, i dont see him beings on ra sized as inappropriate by a big group of ceos out there. Though and certainly i would think that business would like a lot of his tax proposals, lowering the Corporate Tax rate, making it presumably easier to repatriate dallas and profits held overseas. That would work in his favor, right, addadi . His policies will have advocates and detractors. Professor f oor final steen, do have the characteristics of a super boss . I dont think that would be the word to describe him. The key attribute is the ability to adapt, adjust, be agile, and thats been shown throughout history. I go back to president obama and say if we knew that the financial crisis was going to be as severe as it was. Gentlemen, thank you. Weve got to leave it there. Sydney finklestein and amount di ignatius, thanks very much. For decades, investors have used a 60 40 stock and bond model, with little in alternatives. Yet alternatives can tap opportunities that traditional assets cant. And even though theyre called alternatives, theyre actually designed to help meet very traditional goals. Thats why invesco believes people should look past conventional models and make alternatives a core part of their portfolios. Translation . Goodbye 60 40, hello 50 30 20. Of fixodent plus adhesives. They help your denture hold strong more like natural teeth. And you can eat even tough food. Fixodent. Strong more like natural teeth. Fixodent and forget it. Take a look at the price of oil. Were hitting session lows. We lost about a percent from the very top of the show, and take a look at whats going on in the markets. On the s p 500 we are also hitting session lows here. Down by about 0. 2 of 1 . It is worth watching. We do seem to be tracking as for the sectors, there are huge declines in Consumer Discretionary sector actually not anymore, but health care and energy are leading the ways. Utilities and discretionary are lower, the Department Store complex thats where were seeing the most pain ahead of a lot of retail earnings next week. Rick, what do you see going on in the bond market . Session highs on price lows on yield. Look at the intraday of 10s we have traded down to 175. Should we close down there that would be the lowe yield close one day shy of four weeks. Hey, i can remember 30 basis points. Thats long gone. Everybodys tracking together, of course, maybe year to date, ten years even more interesting. What a pattern, basically double bottoms in the mid 1610s. Were getting ever closer to that. Dollar index, third day of stabilization off a count we havent seen sis basic already our new years eve parties, because its the beginning of 2015. Lets look at a toyears chart. The more i stare at that, the more i show it to traders and take off what it is, they say, wow, that chart looks like tell go down further. Tyler, back to you. Rick, thank you very much. S make or break it for go pro. The company reporting after the bell today. The stock down 77 in a year. What is the problem there . And what will it take to turn it around . Thats still ahead on power lunch. [ soft music ] e. T. Phone home. When you find something you love, you can never get enough of it. Change the way you experience tv with xfinity x1. Hello, everyone. Im sue herera. Here is year cnbc news update for the hour. The fda announcing a ban on the sale of ecigarettes and other to bako products to people under the age of 18, in a shift vigorously opposed by the industry, manufacturers must seek federal permission to continue to market. George h. W. Bush and george w. Bush say they plan to sit out the general election. They say they will not endorse the presumptive nominee and they dont plan to vote in the november election. British Prime MinisterDavid Cameron and osborn casting votes today. Local and may i dont recall elections are taking place. Voters are heading to the polls on whats been dubbed super thursday. Walmart is bringing greeters back to the front door by midsummer, the employed crease had been positioned throughout the store to help customers, it was so successful that walmart is moving them back to the front lines and the front door. Thats the cnbc news update this hour. Michelle, back to you. Thank very much, sue. Wow, both president s bush not going to vote. What does that tell you . We have rolled over, starting just about 1 00, power lunch wont take it personally, but the s p 500 is at session lows, lower by more than four points. Slowly by surely seeing every sector start to roll over as well. Health care is positive. Energy is barely positive. It lully had been negative despite the fact that oil is higher, appeared the worst performers utilities where we see american waterworks, edison, all lower by more than 1 at this hour. Tyler . Michelle, lets drill down o