The murdoch house didvided abou what to do over bill oreilly. The latest developments on this one. Power launches right now. Welcome to power lunch. Im michelle carusocabrera. As we speak secretary of state Rex Tillerson meeting with Vladimir Putin about what to do with syria. Falling below 50 day moving averages. Check out the regional banks. They are down by 20 on average. Im melissa lee. Here is what else cutting 100 jobs. Ecommerce strategy, samsung delaying the launch of apple siri. And new data showing u. S. Crude Oil Inventories are, in fact, falling. A lot going on. President trump meeting with the secretarygeneral of nato as diplomatic tensions rise with russia. Kayla tausche is live at the white house. Hi, melissa. Those two leaders will be meeting in person. They shared a phone call during which the white house said the president expressed his support. National Security Officials say that that will be expressed again today. Here are some of the other issues expected to come up during that meeting this afternoon. President trump cares deeply about the allies as part of nato increasing their defense budgets. He is expected to drive that argument home one more time. Theyre expected to discuss a swift resolution of the policy over what nato will do in afghanistan. But looming the largest today is how nato plans to approach russia with secretary tillerson in moscow right now. We are awaiting word what was discussed in the meeting that is currently ongoing with Vladimir Putin. Nato is a buffer zone of sorts to russia, and any expansion of the alliance is seen as hawkish by the kremlin. So you can imagine that their feathers were ruffled yesterday when the president moved to approve a longstanding consideration of montenegro in the Balkan Peninsula to become part of nato. Earlier in the year, last month, the annual report, the secretarygeneral said, quote, at no time since the cold war has the Nato Alliance faced greater challenges to our security. So that is what nato has said on the record regarding the russian situation. Relation ts between the two countries have intensified in the last 24 hours with white house officials having said russians were at the airfield, that they struck in syria last week, and that they believe russia was involved in attempting to cover up the existence of that chemical attack. Russia has responded and says it believes the Trump Administration is fab ricating that story. And this is on reports secretary tillerson had a contentious meeting this morning u. S. Time with russias foreign minister over the involvement of the u. S. In syria. But, of course, we await an official word from the white house on exactly what was discussed and where that relationship goes from here. Guys . Even the diplomatic language that came out earlier about that meeting, kayla, was pretty tense. Thanks so much. As kayla was talking about in moscow right now secretary of state Rex Tillerson is meeting with russian president Vladimir Putin. This meeting was not certain. There was talk it would be called off as a result of the u. S. Strikes in syria. Tillerson told the russian government it must give up support for Bashar Al Assad in the wake of the poison gas attack we saw last week killing 87 in northern syria. Lets bring in contributor and tim frye, professor of soviet Foreign Policy at columbia university. Are you convinced this is what he did . An ultimatum on backing down . Thats what the Trump Administration would like to happen. I think the odds of it happening in the near term are very low. I think this is the start of a much longer game in which the u. S. Government will find way in cooperation with the russians to put pressure on assad and hopefully ease him out in a coordinated transition. Fred, you should know weve just learned the meeting between tillerson and you putin just ended, and we are awaiting a News Conference with tillerson and Sergey Lavrov. At some point we may have to interrupt here. If, indeed, we now have a new position under the Trump Administration that assad has got to go, what comes after assad . Are we ready for that . Were not ready for that. Whats really changed is the way this administration operates this is what you see in the nato meeting. President trump in his previous business didnt have a commerce secretary, a treasury secretary, secretary of state, secretary of defense. Hes beginning to get accustomed to hearing their advice and then following that. And last week was a very good week for him. And so what you have is Rex Tillerson going out to moscow. Secretary kerry had many meetings with lavrov, with the foreign minister, but nobody paid much attention to it because he always showed up with little leverage. Secretary tillerson is showing up with real leverage. What that leads to in the short term in terms of the joint press conference, there will not be a joint statement. We know that already, and europe not getting much press report because secretary tillerson still doesnt take a press pool with him. I think its less what comes out than it is the absolute dramatic change of approach towards russia just so im clear, the leverages that we would bomb again . Whats the leverage . The leverage is that you actually have to count on the fact that the u. S. Is, again, willing to use military muscle in one way or another whether its north korea or whether its syria. Well, as i understood it this morning, the russians im curious, why do you still call it professor of soviet affairs . Post soviet. They left the word out. Yes, thanks for catching that. The russians have been very frank about warning the United States not to do it again. So where does that leave us . Do you say, okay, were going to call your bluff, were going to bomb them again . If i could jump in, the strikes would have made a lot more sense if they were part of a longterm strategy. Remember two weeks ago the trump add morgues was saying the problem of syria, of the future of assad is up to the syrian people. I think from moscows point of view this looks like a one off rather than a strategy. Are we pursuing a thought out strategy or not . I dont see evidence of that. This may be the first step or improvising, making it up on the fly . Im closer to your view than freds view. Fred . Tyler, what weve done, its an improvisation but the improvisation has been led by people, defense secretary mattis, mcmaster, who are strategists so theyll add strategy. Fair enough. But dont forget whats going on domestically and this is whats important. The moscow market, the rts market, went up 22 in the first two months after trumps election. It went down 9 after the honeymoon was over in february and theres a lot of economic difficulty in srussia from capital flight, from sanctions, from oil prices and it is not in Vladimir Putins interests to have relations with the u. S. Dont you worry about the mission, fred . Were not going into syria. If you have to say that, people are asking the question. It was the speed of the trump action. He did not get into Mission Creek and i dont think this administration will go there. You have to ratchet it up. You have to keep going. Something that happens even though you dont want it to. Thats why its called Mission Creek. You can protect a lot of syrian lives by not putting a lot of boots on the ground. Weve done nothing to that end. So just the beginning changes the conversation. One of the points, tim, we made last week, the idea in taking the action against syria and throwing a pabl up under putins chin, if anybody had a question about being a puppet, a captive mr. Putins boy, he did away with that. The stakes in syria are so much higher. Any positive benefit mr. Trump would get by deflecting attention away from the really serious charges i dont think is whats driving us. Not driving it but some collateral effect. I dont think thats the motivation at all. I dont think its the motivation, but i think its right. The motivation is to deal with the problems in syria. The problem with the u. S. Strategy is just not credible. We dont see whats the next step is going to be and on the russian side, they dont have any new ideas here either. The russians continue to blame the rebels general wesley clark told us they have a general. They have a general they can put in to replace assad. That general would have to be somebody who could command respect. Its a situation in which russia wants a russian friendly leader presumably assad in power at low cost to them. What were likely to see is the horrible to continue. Fred, thank you for being with us. Postsoviet affairs. We like you, too. Absolutely. What are some of the geopolitical trades to consider right now . The japanese yen and gold are both seeing buying and trading at fivemonth highs but the rise in uncertainties beyond safe haven assets. If the conflict continues the likelihood of saudi arabia backing out of the opec deal will rise and that could push the price down. Investors scaling back their exposure. When you look at the countrys fiveyear credit swap chart. The threat from north korea grows. Add it to that china as drills shut down some operations of certain korean businesses. Thank you. A news alert in the bond auction. Rick santelli is tracking the action at the cme. Rick . Reporter this is the third cminus weve had three auctions. Another cminus for 12 billion, were adding to it an issue optioned in february. A little high where the market was tradinging. 2. 23 bid to cover light. Like the last several auctions, a little light. Out the door and of course well continue to monitor how all this trades in the secondary market with the holiday weekend. Melissa lee, back to you. Shares of delta up after earnings beat estimates. Shares of United Continental still under pressure falling this weeks fiasco. A strong buy rating on both delta as well as United Continental. Great to have you with us. Thanks for having me. Anything we can draw on, how airlines are doing. They definitely saw that in the First Quarter and predicting in the second quarter. Revenues are moving in the right direction and thats what i think investors are waiting to see in order to start pushing the stocks up and now is a good time. Who benefits if at all from whats going on over at united . I think delta has an excellent reputation after united has dropped the ball on many occasions is set for a market share gain. Do you think that video is going to change the minds of potential passengers in terms of delta over united . To the extent customers have a choice and in many cases they dont. For instance if youre applying out of newark, seven out of ten flights will be a united flight. Business travelers want choice, a lot of options, and united gives them that. At some point theres got to be a point theres pushback from customers. There will be some market share shift as a result. You have a strong buy on y united. Are you reconsidering that . No, were still sticking with we dont like the way the Company Handled the situation at all. It was a debacle from beginning to end. Theyre saying the right things about handling the situation but, for us, the fundamentals are good for the industry. United trades at a large discount to peers. You can see why they do. Incidents like this but we expect both the industry will see price appreciation and united will eventually close they trade at a discount and they are proving it every day. They have earned it. Any sort of gaps like this, jim, and you see people in office jump at this opportunity to step in and be the voice of the consumers to complain, to insist there should be regulations in place to protect the consumer. Anything on the horizon you can see that could harm the airlines especially when it comes to being able to overbook planes . Theres been movement on this. A couple members are moving to have some hearings. Governor Chris Christie has said he wants the president to step in and try to stop overbooking. If that practice is halted, it would probably have a negative impact on the revenue environment how much of a negative impact . Demand is still strong. How much of a negative impact . Maybe a couple of points of revenue pressure. This is not something planes are flying full. The difference between overbooking and fully booking is not that much on the revenue line but it is something the airlines do like to do. Its amazing they do it for so little revenue. Exactly. Jim, thank you. Still ahead, Green Light Capital blasting gm and upping the fresh europe for board representation. The latest plus gms response ahead and the new York Auto Show under way now. Were going to head there. Are we . We are going to head there for an interview with jeep ceo mike manley. Manly person. Dont go anywhere. Most etfs only track a benchmark. Flexshares etfs are built around the Way Investors think. With objectives like building capital for the future, managing Portfolio Risk and liquidity and generating income. Thats real etf innovation. Flexshares. Built by investors, for investors. Before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. Our 18 year old wase army in an accident. 98. When i call usaa it was that voice asking me, is your daughter ok . Thats where i felt relief. Were the rivera family, and we will be with usaa for life. Were back. Green Light Capital increasing the General Motors representation. Blasting gm accusing them of misleading ratings agencies about the hedge funds plan to split the stock into two clas s classes. Gm had rejected the proposal in response gm saying the rating agencys public statements issued regarding the green light proposal clearly indicate that they understood the idea and all its facets and would represent a negative. Flat this morning. Just because its negative doesnt mean the shareholders. Oftentimes theres a battle. If the credit is negative for shareholder rights its a terrible thing because it doesnt have much voting power and the voting power is held by the other class of shares. Got it. Sticking with cars, new York International auto show full swing now. Just getting under way. Phil will he he bow is there with jeeps ceo mike manley. Reporter let me bring in mike manley, the global head of not only the jeep brand but the ram brand. You have so many titles. I want to talk about jeep, particularly the growth in the u. S. You have the compass rolling in the showrooms right now. Does 2017 become a year where you really start to see that growth kick in once again . Yeah, absolutely. Its a global vehicle. Well build it in four plants around the world so youre going to see that continued expansion in all of our international markets. Reporter what is driving this brand aside from the fact that we see this rotation into suvs and crossovers continue . Are you still able to leverage that jeep brand equity right now . Absolutely. Thats one of the perfect things that we have. You know, weve been in the international markets. They represent a huge amount of industry out there. Everybody has known us for the year, for years and years and all weve been able to do is scrape the surface. We set up to globalize what we do. Theres plenty more to grow in the markets. So many people focus on whats going on with growth in china but you want to talk about the fact you still have a long ways to go in terms of what you can do here in the u. S. Including eventually in a few years a Jeep Wrangler pickup truck. Absolutely. We had the wagoneer, we walked away from that top part, left it to our competitors. Well be back there in 2020 with an incredible vehicle bringing that great nameplate back and something in the job, the number one thing fans have asked for is a pickup truck. Fully into development and well be available. Reporter does it potentially cannibalize the interest in ram or do you look at it and say two completely different audiences . In my mind completely different audiences. This is truly a lifestyle pickup and obvious ly will be very, vey capable, as you know. It also sits underneath where the 1500 ram kicks in. I think its just going to draw more people to our showrooms, give us bigger opportunity. Reporter in a broader sense in the United States, whats your take in terms of what were seeing . As i walk around the show, i hear a lot of executives saying the sky is not falling. Relax, everybody. No, im a big advocate of that. The First Quarter is flat. This is a great industry. Just think where it was. March may have been down a little bit but i think im not pessimistic at all. Reporter mike manley, guys, when they talk about brands that are hot right now, hes sitting on two of the hottest ones, growing two of the hottest ones. Back to you. Ive noticed in the numbers youve reported, phil. Thanks so much. There are 850 million reasons for blackberry to celebrate today. They have a dollar sign in front of them. Shares are sharply higher. Where they got all that money and why next. Blackberry shares surging more than 16 , this following an arbitration in blackberrys favor against qualcomm for royalty overpayments. The reward represents 20 of blackberrys u. S. Market c capitalization, a huge number, and could be a good sign for apple. Apple filed a lawsuit against qualcomm in january also over royalties. The united ceo speaks out, but is it too little too late . We will discuss. Plus, what are your rights should you find yourself bumped from a flight . We will tell you what you need to know next. Trading tools, give you access to indepth analysis, and a team of experienced traders ready to help if you need it. Its like having the power of a trading floor, wherever you are. Its your trade. E trade im contessa brewer. Here is your cnbc