And welcome to power lunch. Im melissa lee. Nasdaq barely holding on up about 2 wi8 points joining the dow and s p 500 which are negative etf that tracks, hitting yet another intraday alltime high and ivb is rally within health care it is on pace for best week of the year esperion, novocure, biggest leaders right now. Thank you we will find out right now which car company has the highest quality of anybody fi phil la boes with that news. Phil the latest survey on initial auto quality, surveying about 80,000 new vehicle buyers. This is what they found. Good news, reliability, quality, people surveyed after owning the vehicle for three months, never higher in all the years theyve been doing this survey 27 of 32 brands improved quality ratings. Top one, kia, for second straight year, ranks as best followed by genesis, which is luxury brand by hundred day and porsche were the top three bad news, people not happy with the Driver Assist sec knotechno are seeing Adaptive Cruise control, lane Departure Warning systems. When i talk with the head of this survey, he said look, people may not understand what this technology is supposed to do in some cases like you are wrestling with the car bottom three brands when it comes to auto quality. At least initial quality, worst being fiat, number 31, jaguar and you have involvolvo and thor bottom three finally, shares of tesla i get this question, where did tesla rank tesla was not in this survey because they did not have enough responses to consider them statistically relevant some of that has to do with being allowed to contact tesla owners in california and new york they do not have that authorization from dmvs and those two states and they are not included in the rankings guys, this issue of Driver Assist technology is a big deal. Because increasingly you hear people say, im not really comfortable with this lane departure system or Collision Avoidance system im not sure when it is supposed to work or not work, it is all part of the industry trying to figure out what people want. What weve learn said that every time apple makes a tweak to its iphone, everybody freaks out. Because people hate i hate new things they cant figure it out how much of this is actual problems versus when bmw came up with the idrive system they had problems, but the problem is that they just didnt know what they were doing. People arent comfortable with the systems and it is not that the driver asicht tesist technology isnt working, it is more a case of they are not intuitive enough and people are not clearly explained or the dealerships are not explained. This is what it will do when it says you are getting too close to another vehicle in another lane thats the primary issue here. Nonetheless, when you pay 30, 40,000 for a vehicle, you better be comfortable with it. If not, youre going to complain thats what they survey shows. 30,000, what is that a 4yearold car im not in the Brian Sullivan world. Lets change it. Average price is there are 60,000 or 70,000. First of all, i only buy used cars i learned from phil that the average price of car is well above that 33,000 something around that. 33,700 is average transaction price. Thank you thats average transaction price. Bye, phil another news alert, this time on uber. Hey, guys, of all pemt we could run into here in detroit, we ran into former attorney general eric holder who of course led that investigation into ubers corporate culture. I asked him what was next for the company and he said that hes positive on uber and he thinks that company has a chance now to enact some real change. He mentioned that sevenhour Board Meeting that happened about a week and half ago and said that all Board Members were incredibly serious and he is very optimistic that all of his recommendations in that 14page report are going to be put into place. Guys, back over foup. All right random run there, thank you very much ceo, Travis Kalanick, out. No ceo, no co, no cfo, no general counsel. That sounds sustainable. Lets get to president and ceo of Aspen Institute i will start with you, walter, do you think that despite the failings, driving failures, that p propelled the company to a record in record time. Both things are right set driving passionate force without him, i dont think uber could have gotten to where it is they have what is called traviss law, every adviser would say, travis, dont be so arrogant when you go in and testify before the city council, try to give a little, be careful. He would go in and take no prisoners with his approach and it worked. But i think this is a good thing now. At a certain point a company has to mature and i think this is a good time for uber to move to the next phase a lot of people, when they finished that book, said, wow, steve jobs is a jerk they liked the product but were uncomfortable. He isnt a likeable guy. Does the world have a tough time that founders are often jerks. And the fact that what makes them a jerk is what makes them good at founding a company well, yeah. Steve jobs, first word that comes to your mind is not jerk first word that comes to your mind is genius a guy thats passionate. He pushed people but everybody in my book quoted talking about steve being passionate or pushing them said yeah he drove me crazy but he also drove me to do things i didnt know i could do and im so glad i worked for him. I think travis has some of that in him too he drove people crazybut drove this company into something that transformed this world you dont totally transform urban Transportation Systems globally within a four, fiveyear period without pushing very hard. So yeah, i think have you to be pushy. I think you have to sometimes be arrogant to be a great founder but you know, great founders are then often followed by people who are great consolidators or people who know how to run a company in a more calm and sane way. Not everybody has to be a jerk, right . We have a number of founders out there who are current ceos of their companies. And jeff bezos comes to mind he is still in place and doesnt necessarily have the well known reputation of being a jerk in order to get amazon to be as innovative as it is. Mike Mark Zuckerberg, the best example a company even more valuable what he did, and he was a kid when he started building it. Literally a college ropout, learned fast Mark Zuckerberg took criticism to help himself. He gave control to a number of adults to fix things when he realized there was a problem with women left out, he brought in Maxine Waters to come in and empowered her to do whatever she today do. Zuckerberg is the example to use here he is best of the best in this sense. You dont think because the world has become so pc you know, many factors here but the fact is you need to have leaders who can learn and grow and keep arrogance under control. Mark zuckerberg, what was facebook originally . Facebook was a network, and he wanted i think hot or not, right is this person hot or not . Right . Exactly he has matured along wait zuckerberg was a jerk on the road show, focussing on the wrong things, but grew up rapidly. I was critical about mark. What shocked me is about a year are a two ago he wrote me an email thank you. I read your stuff. I appreciate your input. This blew my mind. And im hit biggest critic and he is thanking me. Thats the sign of an adult. He is learning and growing like i said, flattery will get you everywhere walter, another point about uber, not taking anything way from what a team has done. As you said, transformed urban and maybe suburb an transportation, right . Everyone is ubering around because they want a glass of wine they dont get into their own car and get a taxi however, this is still a company that loses by most measures billions of dollars. Did he build a Viable Organization yeah. I think when you build a company sometimes thats totally transformed and disruptive you are going to lose money and jeff bezos, a wonderful ceo, did that with amazon as well i have a piece thats book review cover on the sunday New York Times this coming sunday about airbnb and uber and why they were so disruptive. I think that markets not crazy in the venture capitalists arent crazy, the valuation of this company is very big its got enormous potential. So to settle it down for wubs if uber were a publicly traded company, would the stock be up on this news the stock would have crashed over the last few weeks, last few months today would shoot up again th they have a chance to bring in a top notch executive and they have free reign to bring in someone to transform the company. Hopefully bring in a woman this is wonderful for Silicon Valley now their role model has been demolished and we goat rebuild Silicon Valley thats the way im seeing it characteristic size, walter, do you think that we need to see in a new uber ceo . I think one of the greatest Jobs Available in america now. One of the things about travis stepping down, which was good on his part, is you talk to the very beginning about all these jobs unfulfilled including the cfo. And now theres a chance with travis stepping down that people come in, great woman or great guy, come in and say, i think almost any potentially huge ceo would want this job. Qualities are something thats got to be a consolidator someone that can follow a very aggressive cofounder as travis was. Just a quick point here, why do you think things will get better in Silicon Valley i dont want to lump all companies in together, but we were going to do something last year on it and just didnt have time all these hot startups with different problems, you know, th herenos run by elizabeth holmes. But mostly Silicon Valley is male, white. Nothing has changed. Why would things get better . Well what happened is the demographicsn arent changing in Silicon Valley it was humiliating for the valley have you investors saying this isnt like us, this isnt like us but this showed that the investors are problem, boards are the problem. It exposed the worst of sill von valley the fact investors today do what they should have done two years ago and fire him shows that finally they were held accountable and but the worst and best have to do together sometimes when have you a wild west culture you will build Huge Companies and also have a city full of con men, right you cant have this when you talk about frontiers, and this is was on the frontier, Silicon Valley is often on the frontier, this happened for the past thousand years. Whether the wild west of america or frontiers around the world. What you have is people on frontieres who combine idealism and sort of craziness. You know a whackiness to them and thats what pioneers do. What you have to do for a sustained culture is who comes after the frontier thanks, guys. Okay. And a check on oil right now. In just past 45 minutes or so it has fallen about a buck a barrel you see at the lows of the session down by about 3 no surprise the oil equities, s p, worst performing down by 1. 75 . There are reports that three opec delegates are dismissing the idea of deeper production cuts, referenced earlier by iran that could be the reason behind this steep decline which we are watching for you still ahead, alibaba executive, why President Trumps made in america policy could be the gateway to china alibaba stock up more than 60 this year. Should you ride this rally major storm headed towards the gulf live on the ground in alabama. And Senate Republicans getting ready to unveil their Draft Health Care bill tomorrow. Will both sides get on board that and more mi uon ow lch. Congp its not just a car, its your daily retreat. The es and es hybrid. Lease the 2017 es 350 for 329 a month for 36 months. Experience amazing at your lexus dealer. Wont replace the full value of your totaled new car. 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Welcome back, trump getting support from one of the most unlikely places, alibaba you guys, there are about 3,000 attendees here for this event. And they are here to learn how to sell their products to chinas growing middle class who better to learn from than alibaba. China needs more American Products next, china market, need a lot of america products and made in america the product, the quality, the service, you guys here visited the booth. Beautiful products we, chinese consumers, are crazy about that we need that guys, you might remember that jack ma told now President Trump he wanted to help create a million jobs under america this is part of him making good on that pledge take a look at some of these businesses this is vieta bit. They say theyve today hire more than 20 people here in the United States since selling on alibaba. This is the family owned gin sing company they say theyve hired eight people in the United States since selling goods on alibabas platform this is a long way from the million number, but its a start. One major challenge, alibaba has to show these businesses and others not in detroit to trust alibaba, a crack down on counterfeit, which is a big problem, and trust them on their products thank you alibaba is not only attracting u. S. Businesses, it is also attracting a lot of investors. Stock up whopping 61 this year alone. Up 80 perce last 12 months outperforming, apple, google, netflix. Rob, good to have you with us. If youre forced to choose between a new stake or alibaba, which would you choose at this point . I think in terms of being furtherest from where its appropriate valuation is, alibaba is the top of the list if i was ranking order, i think the next in line for me is netflix with the most cap appreciation over the next three years. I think of the mega caps, 100 billion and up, alibaba is probably still set for outsized gains the next 12 Months Company had a stunning Analyst Event a while ago. A few weeks back ago in china. Gave some guidance that knocked the socks off of what analysts we are expecting out there in terms of the target, a trillion in gm or gross merchandise volume by fiscal year 20, how important is this retail push, reachout to Small Businesses here in the u. S. To sell to china. How important of a part of that goal is that important they cant get there on china retail alone obviously china Retail Business is the significant majority today and its growing still nicely in the 20 percent plus range. Even if you compound that and you cant get to their target without a material contribution from International Two segments, one we are talking about with the detroit event is their express business, to facilitate crossborder trade. And growing quickly in acquired properties in the rest of Southeast Asia they need both to make that 1 trillion target. What are roadblocks alibaba could face in expanding International Sales . Yeah. I think cross border is difficult. Theres a lot of friction in that delivery chain and logistics model. Importing goods across tariffs, immigration, Currency Exchange et vaet. Theres certainly work to be done i think that thats an opportunity to make that a little bit more frictionless in this Southeast Asian properties, i think its just execute the play book that worked in china. Export your proposition and competencies into those regions. Very similar type of consumers in singapore, thailand et cetera rob, thanks for joining us. Coming up, baton down the hatches on the gulf of mexico. Look that. Tropical storm cindy growing s adg was e intordth gulf we are heading to mobile, alabama. [vo] when it comes to investing, looking from a fresh perspective can make all the difference. It can provide what we call an unlock a realization that often reveals a better path forward. At wells fargo, its our expertise in finding this kind of insight that has lead us to become one of the largest investment and Wealth Management firms in the country. Discover how we can help find your unlock. Heavy raines from Tropical Storm cindy causing flooding along the alabama coast. Weather channels Reynolds Wolf is live in mobile, alabama with the latest reynolds reporter oh, my gosh what a day already what a crazy couple of hours we can certainly expect it into the afternoon, evening and into tomorrow as it continues to make its way north, there is a prospect of corps nadic activity we haver to nadic reports in new orleans proper a short time ago. Unfortunately we will see more of this in overnight hours and next several days. There is also a loss of life reports after 10yearold boy who lost his life here in the mobile area caused by debris, we believe, picked