Transcripts For CNBC Power Lunch 20160718 : vimarsana.com

CNBC Power Lunch July 18, 2016

National committee behind me bringing this convention into session. Its a convention with high stakes for the Republican Party because donald trump is trailing Hillary Clinton. If you look at our nbc the wall street journal poll just out over the weekend, shes leading him 46 to 41 . Donald trump leads only in the south, trails every other region. Hes got to make up some ground. And hes got a task to both identify a broadly appealing message and also persuade voters that he is up to the job of being commander in chief. Interestingly though as at a time when donald trump is trying to unite the party and his choice of mike pence as running mate was a step in that direction, his Campaign Chairman Paul Manafort has taken a strong stance against the antitrump hold out. This morning he said Governor John Kasich ran against donald trump was not speaking at this convention, was embarrassing his state. Also said people like kasich, like mitt romney, like the bush family members who are not coming to this convention are out of the past. And were looking toward the future. That is a more aggressive tone than you would expect somebody trying to pull their Party Together would be. But this is as Paul Manafort says, its Donald Trumps convention. How does it look, john . Were seeing the crowds everybody at attention as we get underway, i assume it feels different to past conventions, or doesnt it . Well, at this stage you cant much tell, but you know because donald trump is such a unique personality, this is going to have a unique feel to it. He may speak tonight when he said in interviews that he may come speak every night of the convention. But he may come speak tonight when his wife malania addresses the convention. And so donald trump is broken all the rules to get to this point. We kind of expect hell break the rules all week. Its going to be a lot of unpredictability. John harwood, thanks. Speaking of unpredictability, lets send it over to eamon javers whos keeping an eye on the rnc protests. Yeah, hi, michelle. First significant protest of the day outside Convention Hall in downtown cleveland. This group is a grab bag of different groups here speaking behind me from black lives matter to Workers Party to hispanic protest groups saying they are for immigration. I wanted to show you one of the things theyre handing out here, this is the socialist alternative newspaper. Underscore the point that the republicans are not the only Political Party where the political split. The headline here is still not with her. The guys who handed me this newspaper said they are Bernie Sanders supporters. And they are not going to be supporting Hillary Clinton in the november no matter what happens. So this protest pretty tame today, but ultimately they are prepared, the police are here in cleveland, for any kind of activity that might occur. They have purchased about 2,000 different sets of riot gear. Theyve got 123 different permits for marching protests. And theyve also got 58 different groups whove been issued protests all together for throughout the week. All told they say they are expecting 11,310 different protesters here in cleveland this week. So its a combustible mix. And we have seen a very heavy security presence everywhere from coast guard ships with machine guns over here on lake erie to bicycle cops here at the Convention Center. Theyve got a very visible security presence here in downtown cleveland. They say they are prepared for anything that might happen this week, guys, back to you. Have you seen anybody carrying guns with the whole issue of open carry . We have not. And actually ill let you take a look here at the protests. We dont see anybody carrying guns here at all. We see a variety of very peaceful people out here protesting a variety of different causes. But we havent seen any weapons out here at all. Feels very peaceful and very secure right now, michelle. Eamon javers, thank you live at the rnc for us. Outside of that we have a big developing story right now on the zika virus. It is a sad story from utah. Meg tirrell here with more. Thats right, guys, Utah Health Officials and cdc are calling this a unique case of zika and theyre investigating how this person became infected. So essentially in july we learned of a person who had zika who died of what Utah Health Officials are calling unknown causes, but that person did have zika. Weve learned today that a family member, a family contact of that patient has now also contracted zika. And its unclear how. That person hadnt traveled to a zika area and had no sexual relations with anybody with zika. And the mosquitos that transmit the zika virus are not present in utah as far as folks know. So of course we learned last week that there was another way of transmitting zika, thats a sexual transmission from women to their partners. We hadnt learned that earlier. So this is yet another development in potentially how zika can be spread. People just arent clear on how this patient contracted zika. From what i understand it was an elderly patient. So weve ruled no mosquitos in utah. Thats right. Ruled out likely travel. Ruled out any sexual transmission. Thats right. So its currently a mystery . Its currently a mystery right now. So the cdc and Utah Health Officials are trying to figure out just how this person could have become infected. The reason to be so concerned is, is this something about zika that we didnt know . This could be another there could be another way out there that people get sick and we dont know it yet. Thats what this could be a signal of. Thats possible. And what people are surmising right now is this person who died who had zika had high levels in their blood and possible this person maybe taking care of them became infected with contact of blood, urine, other bodily fluids we know can transmit zika. But right now it is a mystery, as you called it, brian. Meg tirrell, im sure well get more from you. Appreciate it. Were also following another developing story, this one involving the olympics. So the world antidoping administration, theyre saying that the russian doping procedures from 2014 in sochi were so bad that they think all russian teams should be banned from these rio olympics. Weve already seen the track and field team have been, you know, asked not to show up. They dont want the track team there. Now saying their recommendation is that no russian team from any sport should show up to rio, which is starting less than three weeks away. So this is a really big deal. The report says that the ministry of sport in russia was really part of the process in making sure these athletes were getting their drug tests swapped out for proper ones to pass tests. I dont see how thats possible, eric. Putin is speaking right now. Thats right. He says theres no place for doping in sport. Thats right. He says theres no place for doping in sport. He says russia is open for these conversations and is open for having fairness in the games. So obviously what the Prime Minister is saying is a lot different from what these independent agencies are saying about how it actually happened on the ground. The olympics start in just, what, two weeks . 19 days. 19 days. Wow, you could have a huge player completely gone. They were the number one medal winner at sochi. Right. Theyre always a huge dominant team. Right. Eric, thanks. You got it. Turn to turkey now, the fallout from the failed military coup. The president erdogan today cracking massive crackdown against alleged plotters, 9,000 officers removed from the ministry of the interior. Some alleged plotters, some trying to stop the coup, 1,400 injured. Turkish stock market plummeting roughly 9 . Currency falling too. And the deputy Prime Minister spoke on cnbc this morning. He said the massive scale of arrest today is justified. Turkeys a rule of law country. They have to face the full force of the justice. So judicially well decide what happens next. Yeah, and, michelle, by the way there was a report out a couple hours ago that i guess some prosecutors in turkey had entered our air base there. It is unclear why, again, this is a developing story comes from the turkish official newspaper that they are inside the Incirlik Air Force base. They are our allies, nato member, but always a problematic ally under erdogan. And this base is in the South Central part of the country which is up against many of the troubled spots. Not up near istanbul. Well get more on that, but right now back to the markets. Stocks overall ticking mildly higher. But despite the lack of a big move today its been a pretty good year for the dow. 22 dow stocks are higher this year. But one stock that has not hit a high is apple. Heres an interesting question, could apples decline actually be a good thing for the overall markets . I know it sounds crazy, but hear us out. As apple soared, some suggested it was overowned by everybody. Every hedge fund in the world had it as a top holding and Retail Investors also snapped it up, meaning it may have been pulling money from everywhere else. So if people are selling apple, or looking elsewhere, do more other stocks get access to investor money ie, sell apple, buy a couple others, and maybe the whole market lifts up. Thats the idea. Lets find out if this theory is genius or total garbage. Bring in cnbc contributor jon najarian and matt teback. You have said stocks would go higher if apple didnt, do you think its maybe a good thing . To be honest, yes, i think it could be. Ive changed my mind. I think basically a reset has taken place. As you mentioned individuals and hedge funds but also mutual funds highly overweighted in this stock. And so whenever any new money came in, you know, a big chunk of it went to apple. Now that theres been a situation where, you know, apple for years it came out with the thing, whether it be itunes, ipad and of course the iphone which changed the world, everybody expected this every new product was going to change the world. The iwatch didnt do that, so we have a little bit of a reset. Lets face it, at its peak apple was up five times as much as the s p. Now its up four times as much. So i think now its kind of back into where it should be given that their new products arent what they quite used to be. And then take it from there. And more of this new money will go into some other areas. And, jon, you get my theory, right . Because we sit right next to each other at cnbc sort of complaining about this, talking about it last week which is forget the dow because its a price weighted index, apples going to go up and things are going to go up. I mean, overall, did apple no knock on apple at all, jon. Did it absorb so much investor money and a lot of other really Good Companies simply got left behind . Yeah. And it absorbed a heck of a lot of time on our air waves every single day, brian. So, yeah, i think its very possible that a lot of these suppliers to apple are the ones that are getting the love this year. I mean, as apple has basically bounced around between 88 and call it, you know, i guess it got up to 112 or so, but now its basically about the 100 level, 99. 5, 100, you take a look at the suppliers, brian, add a jabl or analog devices, or at a crus. These stocks are up four times the dow, six times the dow while apple is underperforming, as youve stated. So i do think that your theory is correct that a lot of folks are looking elsewhere. Not that theyre trying to get out of apple and shun it, but their focus isnt just apple anymore. And thats a healthy thing. Well, apple, i guess, matt, would be the rising tide and everybody else would be all of the boats on that tide. So lets take the flip side. Apples done pretty well in the past month. If apple continues to be strong, is that necessarily a negative then . The counterfactual . No, i dont think so. Because i think, again, weve had this reset. Now that some of the people have paired back their positions, lets face it. People havent said, oh, gosh, ive got to get out of the stock. They still create billions of dollars of cash, still a great company, as jon said. Its more of a thing where now weve kind of had this reset, more money will go in and kind of go together. I mean, i think wed all agree suddenly if apple rolled back over and broke below its 2016 lows below 90 that that would be an indication maybe whats going on in the global economy. But i think now that its kind of reset and underperform for a while, it will kind of go up in the same way as the rest of the market will. But do look at as jon said going to some of these other stocks. Look at the xlk tech etf. Thats broken out to a new high. So now youve got some of these momentum players not looking at apple like they used to. Theyre looking at other names that jon mentioned. So i think theyre both more in tandem now that the resets taken place. You can only love one gorilla guy in your life and you break up and realize theres other love out there. Jon and matt, with love to you both, thank you. To you too, brian. Love a good metaphor. The Republican National convention is underway. In just a few days from now donald trump is expected to receive the partys nomination for president. Not everyone at the convention is happy about that. In fact, were going to talk to a delegate who went to court so he did not have to vote for trump on that floor of the Convention Center you see there. Hell join us next. Images, videos, social updates. We call it dark data. 80 is invisible to most businesses. The ibm cloud has tools that can help see dark data and put it to work. Hello, my name is watson. Working with watson in the ibm cloud, we can help an Energy Company predict pipeline corrosion. And help a startup to use social data to predict market trends. Now businesses can get more out of their data. Thats what the ibm cloud is built for. The Republican National Convention Just getting underway at the quicken loans center in cleveland, ohio. In just a few days from now billionaire donald trump is expected to receive the partys nomination for president. Not everyone at the convention is happy about that. One of them is bo carel, he went to court to fight a Virginia State law that would have compelled all state delegates to vote for the winner of the states primary or face a fine or 12 months in prison. Last week a federal judge threw out that statute leaving him free to vote his conscience. Bo, thank you for joining us. Thank you for having me. Its a real honor. Congratulations on your victory, i guess, but is it kind of hollow . Donald trump appears to have gotten the delegate votes. What are you going to do . Well, right now, we are i mean, theres still machinations happening at this moment. Theres some really exciting news, and that is that we have the petitions necessary to have a role call vote on adoption. Thats huge news right now. Why is that news . Explain the byzantine nature to the audience . Sure. Its difficult sometimes to understand how all this plays, but a few days ago the rules Committee Recommended some rules that will be a hold on the grassroots with the rnc and chairman actually, when it comes back to that lawsuit, which was a vindication of constitutional principles, it defers to these unconstitutional state laws. So we as the delegates at large look at this, i think were going to have a vote down on the rules Committee Recommendation unless we get authority. So if i understand correctly, youre going to have a role call vote, which means every single delegate gets to vote on whether or not theyre going to stick with the rules. As proposed, correct. And if they dont stick to the rules, then in theory there could be another vote which would allow the delegates to vote whatever they wanted rather than in theory what they were compelled to do based on their states. Do i have that right . Well, yes, but then the rules committee may reconvene, but reverts back to the 2012 rules which are much more decentralized. The reason thats important is thats a Condition Precedent to any effort to stop donald trump. But whats your problem with donald trump . He got the delegates necessary based on the rules. Hes brought more Republican Voters out in the primaries than anybodys ever seen. I mean, he could win. Whats the problem here . I mean, maybe look, he was outraced 401, he has a skeleton staff. The reason were doing this and fighting hard is we dont think he can beat Hillary Clinton. So who do you do instead . Whats plan b if hes not available . Anyone thats competent and able to beat Hillary Clinton would be my choice. Yeah, but who . Theres nobody to rally around at this point. Paul ryan says he wont do it. Well, right now theres some indication that petitions are circulating right now amongst the state delegations. I dont know all the details about that. But, you know, under the rules if theres a majority of eight states, they submit a name to the floor. Again, i dont know all the details about that, but those petitions are supposedly circulating now. But, beau, look me in the eye, and i mean of course rhetorically, and tell me you really think theres a possibility that donald trump isnt the republican nominee by the end of this convention . In order to have any shot, even a 1 chance, we got to knock the rules down. And that will be coming up shortly. Tell me what is your issue with donald trump . You mentioned he had a skeleton staff. For having a skeleton staff, hes done pretty darn well. That might almost be a credit to him at this point. Hes outraced 401, when hes not spending money on hats hes wasting it on jet fuel and his steakhouse. I mean, look, when it comes down to it there is a large contingent here. And ive already heard it, i mean, like huge boos, you know, when certain people get recommended for temporary convention positions. Youre going to see a contentious, ruc

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