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tv   The Exchange  CNBC  October 31, 2019 1:00pm-2:00pm EDT

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earnings report they're going t split up the company and i think it's just profit taking. >> duncan brands good earnings report espresso, digital, doing well. >> tough day for the dow down 230 the change starts now. . thank you. the president insists the phase one deal with china will be signed soon but china's reportedly saying that might be all the u.s. is getting. that plus bad manufacturing data spook iing the market today also apple delivering some strong results despite weaker iphone sales is the company proving the critics that it is no longer a one trick pony plus who's getting it right on politicads. we begin with dom chu with the numbers. >> we've got a decline they've been move doung
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throughout the course of the day. not far from session lows. the dow is off by just around 230 points for the day so off almost a full percent. s&p 500 still holding above that 3,000 level but moving to the downside after remember a record day yesterday for the s&p. and the nasdaq composite only off by one-half of one percent one place to keep an eye on what's happening with health care, specifically with bio tech stocks, they've been on a tear however, we've been locked in this range nasdaq, bio tech, etf. can't seem to really break out of it. we'll be watching to see if they can make a move higher or stall out. of course the stock of the day, a massive move higher and down take for shares kraft hines. up about 12% the package food company comes in with earnings better than expected revenues fall short, but there's optimism they're tryinging to rigto
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right the ship this is a massive move, but we are still over the past three years, down around 67% in terms of overall stock price so miguel, the ceo there, big road ahead, big turn around in place. we'll see if they can keep it going with kraft hines >> thank you very much and welcome to the exchange, everyone i'm kelly evans. and investors are weighing mixed messages on trade. the trump administration and the chinese government sending different signals on what's next kayla is live in washington with the latest at this hour. >> china continues to signal the u.s. must roll back all tariffs in order to get that long-term or phase two deal but the white house says talks on phase one are still moving forward and are not impacted president trump tweeting the two countries will soon announce a new site to sign the deal after apeck was canceled trump says this deal comprises 60% of the total negotiations. perhaps a reference to the portion of the eight total chapters that will be dealt with
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in total here or that the u.s. was trying to tackle now there are a couple summits already on the cal r darr. president xi will be in brazil in two weeks for the brick summit and both leaders are invited to the world economic forum in davos but that's in january and a looming december teariffs are viewed as a soft deadline now. tomorrow, they'll speak by phone. perhaps the next steps will get hashed out there >> appreciate it very much with the state of play so stocks slipping on renewed concerns b about trade in the economy while fresh economic data showed factory activity in the u.s. weakened substantially. does bad news on trade and the economy need to get priced into this market? let's bring in jason brady great to have you both here. jason brady, start with you. in the tug of war between the u.s. and china on trade talks, how much of a setback are these reports that china's not necessarily interested in
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pursuing a big deal? >> if you look over a long period of time, each headline has been something you don't want to follow you don't want to say are we taking two steps forward and one back i think what you have is the economic environment in each country weak enough that it's going to cause capitulation? you've seen some, but not enough >> what do you think is priced in right now >> look, i think what we have is slowing economy in both places certainly in china with a lot of stimulus so i think investors are trying to balance those >> what about on the deal front? >> the deal to me, i don't think there's much priced in either way i think there's so much volat e volatility what we're pricing in are what what are the outcomes and it is causing slower economies >> and trenor, if i may call you that because we have two jasons today. >> i've been called worse. >> what do you think is priced in in terms of expectations around this deal now. >> i'm somewhat more optimistic, but i'd say with the market
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recently hitting new highs, i think the market is starting to price in some sort of deal and i think from my point of view, a deal would be positive for a very pe roke yal point of view of the stock market if you got rid of some deadlines and allowed business confidence to rebound a little bit to me, the big problem for the u.s. at least as far as the trade war with china has been that cap ex has been weaker this year than you would have expected given the tax cut pass ed at the end of 2017. if you could just get to phase one and people just tend to think phase two as a long-term project, in my opinion, that would be, that would be good enough for the stock market to continue to move higher. >> as long as we're moving along on that track which goes back to whether they'll meet next one and sign a deal but if phase one keeps moving, you think we could be fine. you brought up something interest iing, the weakened
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business spending environment. greg especially has a piece in the journal today as i'm sure you saw, where he describes it's now favoring democrats what's happening with tax cuts because the economy has had so little to show for it perhaps because of a self-inflicted wound this year on the trade talks, which is kind of long winded way of saying what's it going to take to get business investment, business spending, the economy in general moving back towards the 3% pace we had when the tax cut was first passed >> frankly though, i would maybe take issue with greg a little bit. i think from a political point of view, the unemployment rate is 3.5%. you have 7 million job openings. the stock market's up 40%. since election day so you know u, i still think the economy very much in the republican's favor and of course i think there is a certain extent to which the trade war
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has sterilized a little bit of the tax cut but i think if you can get to the point where businesses are confident that trade won't get worse, i do think that would provide the basis for better confidence and better cap spending and that you know, that would happen just in time for the elections that happen a year from now whether you think on the president's part it was just kind of luck or whether it's like a bill belichick designed type play -- >> right >> i know, it's looking pretty good to me >> what about you, jason brady, and we should mention as well, we just had the vote within the past hour or so to proceed with this impeachment inquiry that's coming at the same time you have another possible government shutdown looming so a lot of political footballs in the air >> there are a lot of things in the air and i appreciate the belichick reference, too i wish i were related to tom brady. a tremendous amount of uncertainty coming from the political arena. you say let's think about what
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impeachment might mean t going to cause some volatility, but for me, what are the policy outcomes? around trade, they're almost zero i would say from a political standpoint, the one thing that seems as though republicans, democrats gree on is that china aes problem and they want to address it >> boil that down for what it means for investors. exposed to the stock market. >> sure. i think look, don't focus on the impeachment. focus on the election. so let's look forward a year and then we could get some real policy differences for example around taxes and that's going to be a much bigger deal. it's going to be a lot of sound. >> telling people you've got wait and see until november 2020 >> we're all going to see then but you're going to see developments leading up to then. >> everyone had it right in 2016 so what could go wrong thank you both pick it up another time. really appreciate it today here's what else is straight ahead on the exchange.
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coming up. weaker iphone sales. no big deal. does apple's latest quarter show it's no longer a one trick pony plus, the president says china isn't the problem. the fed is why he's once again going after powell and he made a movie about him. now he says mark zuckerberg is assaulting the truth what made him write an open letter that's all coming up on the exchange this is the exchange ocnn bc i wouldn't be here if i thought reverse mortgages took advantage of any american senior, or worse, that it was some way to take your home. learn how homeowners are strategically using a reverse mortgage loan to cover expenses, pay for healthcare, preserve your portfolio and so much more. a reverse mortgage loan isn't some kind of trick to take your home.
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vaping deaths and illnesses are rising again according to the cdc, 37 people have died from vaping related illnesss illnesses related to vaping are now approaching 1900 a more than 17% increase from just a week ago. the cdc and fda are still investigating the causes of this >> thank you very much frank holland. apple, one of the bright spots on a down day for the market this despite their weaker than expected iphone sales and despite now numbers out of china showing huawei smart phone sales jumped 66% while iphone slid
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28%. this may not be as big a deal as before because apple focusing more on iphone services and wearables jumped 50% does this mark a turning point for the company? joining us now, roger chang, extive editor of cnet. is this company turning into something more than an iphone company? >> it's still kind of a wait and see right now. i don't think we're, the iphone is still going to be the major moneymaker for this company for a while but they definitely talked enough about becoming a services company that people are starting to buy into the hype and clear ly put ago lot of mone into it. when you look at the numbers, apple tv plus, those are still big question marks icloud, apple music, the app store, they are huge generators of profit for them and ultima ultimately, that's what matters. it's why revenue is on the shortfall side but profits were strong
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>> so the chatter around the app store has dieded down a bit in terms of the regulatory environment. that's the one place have looked to see if apple has anticompetitive practices if that rears its head again, i would suppose that could pose a major threat to the company but the shares have been at all time highs day after day after day this month why the sudden, i don't want to call it a rebound, but why is this company in particular so favored by investors >> if you look at the scrutiny over the tech companies, apple has largely evaded most of that scrutiny you've got facebook and google constant ly in the headlines. facebook in particular they've take b ben a lot of the heat for the tech company. apple's been a beneficiary they've gone on this big campaign about how to protect their data they're all about privacy. so i think they kind of evade that scrutiny and if you're an investor look iing at tech companies. apple looks like a safer bet >> nancy is with us by foep. chief investment officer at tang lehr wealth. i'm curious because you've been a long time shareholder of
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apple. why is this company being success lful in a transition of remaking itself in a way that ibm is not in ibm's case, their core business is declining. the new business is growing, but investors say it's not fast enough and in apple's case, the business is small. why is it not hurting the stock that much? >> thanks for having me. i think the tim cook is a hard to beat ceo. he was maligned after the google maps debacle when he took over for steve jobs hard act to follow to be sure. and he's consistently underestimated this company is simply much better managed than ibm and has less of a transition to navigate so we had argue aed for services in 2016 and wearables. to be the story. they are still a very small portion of total revenues compared to the iphone, but this company is make iing all the ri
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decisions and executing. margins are still compelling you know the valuation however has doubled since we first got in so we are actually trimming back our holdings >> you are u >> pretty regularly. >> and we heard yesterday as well that they're now trading about 10% premium to the market which is the higher end of what's normal for them are people too excited about the prospects here. >> yeah, i mean, i'm a value manager, kelly, so i'm used to taking a lot of flak when i was recommending it, everybody thaugts i was an idiot and now i suppose i'll get some of that on o the way out because we like to sell to eager growth stock buyers i think it's still early there's still room in the stock, but when you have annals coming out raising price targets, that's what happened before the big slide in 2012 or '13, whatever it was. i want to be on the other side of trade by the time that happens. >> no one's ever calling you stupid, nancy. they can answer to me if they're doipg that thank you for calling in
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we appreciate it z >> thank you >> thank you so much roger chang from cnet. coming up today, hundreds of firefighters are battling flames across california. now a new initiative to raise badly needed money to prevent fires before they start and a nice rurp for investors to boot. more on that straight ahead. plus, jeep's parent company looking to merge with the ur lpean automaker to make the fothargest car make ner the world. not everyone is convinced this is a good idea we'll have those details coming up etter where you spend. a new level of privacy and security. daily cash you get back every day. and no fees. not even hidden ones. oh, and if you happen to be somewhere that doesn't accept apple pay yet, there's this. nice. the medicare enrollment deadline is only weeks away. with so many changes, do you know if your plan
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welcome back to the exchange at least ten wildfires are reportedly still raging across the state of california. the kincade fire novrt san francisco is about 60% contained now accord iing to local fire officials, but it's destroyed nearly 300 trucktures and burned through 76,000 acres of land homes and businesses have been b left in the dark for days after f pg&e cut power to avoid sparking new fires this as the u.s. is spending hurricanes of millions of dollars to fight new fires there's far less money to prevent fires from start ng the first place. there's a new initiative to change that. diana oleic takes a closer look in her latest installment of rising risks >> as wildfires now rip through thousands of acres of californi real estate on the heels of record setting destruction last year, a unique financial strategy to prevent such fires is underway in nearby tahoe
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national forest. a bond that provides immediate, much needed funding for fast restoration of the now overly dense, dry and dangerous forest. >> i see a beautiful forest in front of me. what do you see out there? >> it is strikingly beautiful. but what we really have right now is an overstock forest >> zach knight is manage iing partner of the non-profit blue forest conversation and the brains behind the bond >> it's really a public private partnership where we've engaged in investors like pension plans and insurance companies to help cover the up front cost f doing this restoration work with the primary goal of reducing the risk of catastrophic wildfire. >> investors buy into the bond in this case, a $4 million loan held by blue forest. it gives the money to contractors who do the forest thinning investors are paid back over five years with 4% interest by those who benefit from the work and have contracted with blue forest
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like the forest service. state agencies and yuba water, whose reservoirs receive water from the forest. >> there's about 300,000 acres upstream of our reservoir that the water comes from we care about the quality of that water >> willie says it's worth it for yuba to pay investors back a little over time because of u the invaluable benefit of getting the work done now. >> the need for funds immediate. we have a longer summer season or a shorter wet season. and we have significant north winds that are an effect of climate change we need to do something now. >> yuba can't rely on funds from the forest service anymore because the service is spending more than half its budget fight gt fires and the climate change could push it higher >> it creates this vicious cycle where we're spending more to fight fires and that takes away from the preventive work >> the driving force is a
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popular type of investing. esg. it's investing for the greater good in this case, buying into the health of the forest but still making money >> our investors are looking for an impact and a financial return and this is off the charts when you look at what it's giving back >> jennifer price says her investors want to align their capital with their values. and fighting the effects of climate change is number one on their agenda >> it's a little bit harder i do find for people to buy into at times. preventing rather than mitigating and taking it away or stopping but we're preventing it from happening. >> the greatest risk she says is if they don't do more bonds like this one >> because if this transaction isn't replicated or there isn't other funds allocated to do the forest clearing, the fires can still rage >> and diana oleic joins me now. this is fascinating because it suggests that there is a known
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solution to the wildfire problem. this is what we've been talking about all week but how do we get here, what could prevent this from happening in the future? if it's forest thinning and they just need money to make that happen, can the private market step up to the plate. >> absolutely. this is oversubscribed they're doing another one starting next year again, hunl demand for this because investors want to do something for the good you could extrapolate this out to flood resilience. other cities that need work done because there are investors out this >> how does it pay 4%? it's not like 4% is is a fabulous number, but it's a low interest rate environment. where do those returns come from >> if you're not getting more than 4%, why would you do it it's the return of feeling that you're doing something good and that matters the 4% coming over from these agencies they're paying back an they want to pay more because they need the work done immediately and they can't get the funds to do it now from the regular agencies >> so the government in a way is
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paying them to do this work or something to that effect just interesting to watch the different agencies grapple with the funding shortage to fix a problem of such epic scales we're seeing >> exactly and some of the people paying into this bond are insurance companies because they're getting a benefit as well think of how much they have to pay out when there's a fire versus what they pay now to prevent it this is being presented in a paper next week at the first ever climate conference by the san francisco fed. so big stuff >> also, will we see more of this you mentioneded some other places where it could come up. but this idea of the private sector stepping up with the funds because there's a huge appetite for social investing? >> yes, absolutely and we talk about big cities like new york city miami. that are using taxpayer funds that are setting up bonds of their own to do this kind of work if you could get investors in there to do it now, you could get so much more done more quickly. >> thank you so much diana oleic with rising risks. my next guest is a local business owner in northern
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california whose restaurant lost at least $25,000 in business after his power was shut off twice by pg&e. join iing me now, brian hall, owner of betty's fish and chips in santa rosa, california. brian, it's great to hear from you. for someone who's selling fish, i imagine that spoils pretty quickly. >> very unhappy as i'm sure the whole country has heard with the pg&e you know, fortunately, over the years, they're faltering they're not reinvesting into their own infrastructure in turn, people like myself and other businesses and restaurants in particular, we're just losing our product left and right the past three weeks, we've been closed almost ten days i don't know any corporation or business that can you know, do business like that >> sure and tell us what happens on the insurance piece of this are you kcovered for any of thee
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losses >> as of now, no our insurance carrier is nationwide they have failed first wave of fires that came through where pg&e and high winds shut us off. they explained to us that it was not a natural zdisaster now i just recently heard that newsome declared this to be a national er a few days ago. but i don't know if it was actively from the point where he declares it or if it actually starts you know a couple of days ago. i don't know but i know being closed for six days, there's no revenue comesing in. no money >> now that this looks like it's going to become a regularity as california battles these wildfires, do you have a long-term plan r for how to grapple with constant power outa outage. >> i don't see how any businesses can do that i've been hearing this is the new norm for me, my family, this will not be the new norm if this will continue i've been proactive in calling
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mr. stan ridgeway, mayor of eagle, idaho, trying to offer, do like schwarzenegger did when he took office, trying to get big business back into california i asked him, hey, here i am, i would love to move out to go see you. how can you help me? i can't keep going on like this. >> how did he respond? >> he reported me to a lady named robin collins, who is a senior adviser for new businesses coming in and she sent me over some new business locations. so fwen, it's just a something on the back burner, restaurant terms. if it gets too crazy, that's what i need to do because i can't ard fford to keep doing ts >> the california governor said he might try to get some kind of pay out to numbers and businesses the latest number was 150 for families i imagine that's not going to move the needle. >> that's more of an insult than
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anything to live in california, the second most expensive state to live in. my employees, i feel very bad r for them i'm trying to give them some twos and fews along the way. but again, the it's just so expensive. $250, that doesn't even cover 20 pounds of my fish. >> right >> your recourse here, can you get a generator? >> well that was the thing we know most restaurants including myself, we do not own our property our main insurance carrier said we had plenty of time to get to you know, what we needed to do i had contacted a local electrician. it would have taken 14 days to go through the permit process to have breaker boxes put in to be able to harbor a generator the second phase when it came,
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when the fire started, all the generators were leased or rented out so in turn, i thought maybe i'll purchase one. for me, to operate over 400 amps, which is 125 kw, the generator cost about $86,000 new. >> wow >> you can find them possibly 50 to 60 use,000 use wd a couple of hours on them, but including the electrician work, that puts it at 28, 29,000. so you're out 80 to 100,000 investment for a building that's not yours. >> we feel for your so much. we thank you fjoin us. keep us posted co-owner of betty's fish and chips in northern california he mentioned the generate or costs. take a look of shares of back up power generators the stock is up today hit itinga new high again and it's nearly doubled sibs the start of the year they had earnings. they beat on that and on revenue and noted that kcalifornia's
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power cuts are leading to a surge in demand. the ceo says they have seen three 400% increases in volumes in california and here's what else is coming up today on the exchange >> ahead, mark zuckerberg versus jack dorsey. who's getting it right on political ads? plus, uber scooters. stalling out in los angeles. and why taylor swift may not be enough to get the chinese to buy american on singles day. that's all ahead on the exchange
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welcome back a lot of stocks going to the downside including ak steel. they missed on revenues and lowered guidance they plablamed lower prices duen part to the worker's strike against gm southwest is down nearly 2% after a downgrade from bernstein to market perform. the analysts say iing the stock has outperformed despite groundings of the 737 max but warns the anticipated relaunch of the plane will have a negative affect on unit revenue.
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the data storage company provided disappointing earnings guidance for the end of 2019 and announced steve mill began would retire now to sue hi, sue. >> hello, thank you. here's what's happening, everyone u.s. armored vehicles patrolling near oil facilities in an area of northern syria. the video aired by an iraqi kurdish network showed what appeared to be u.s. special operations forces along with kurdish soldiers visiting that facility flooding in somalia has displaced at least 200,000 people including thousands of children that's according to the british non-profit save the children organization heavy rain is pouning the east african nation threatening r residents with disease and more rain is expected in the coming days here at home, after cuba gooding jr. is back in a new york courtroom being arraigned on new charges of sexual misconduct
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earlier this month, he ploeaded not guilty to forcibly touching two women. he has denied all allegations of wrong doing. general motors has recalled more than 600,000 trucks and suvs because a wheel e speed sensor could fail and cause u unintended braking it covers 2014 to 2018 gmc sierra 1500 as well as the chevrolet silverado, suburban and yukons are subject to the recall you can find more information on the gm website you're up to date. that's the news update this hour back to you. >> thanks very much. coming up, we have rapid fire. jack dorsey shutting down political ads on twitter why and how that puts him at odds with facebook's mark zuckerberg that's coming up next. medicare is great, but it doesn't cover everything - only about 80% of your part b medicare costs, which means you may have to pay for the rest.
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first up, twitter is halting the platform and jack dorsey tweeting quote, we've made the decision to stop all political advertising. we believe the message should be earned not bought. he says this isn't about free expression and what seems to be a slight to mark zuckerberg. meantime, screen writer aaron sorkin out with an open letter to zuckerberg saying quote, facebook isn't defending free speech it's assaulting truth. >> this has been going on ev forever. 1800, john adams and jefferson were going at each other for the presidency and there were things in the ad say federal government ying if you vote for one or the other, then your wives and daughters will be b subject to murder and prostitution and
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they'll teach murder and rape. this has been going on for 200 years. >> political, deceitful advertising. >> exactly so we saw u that in newspapers, radio. look at the stuff that's advertised on tv today who knows what the stuff is. in the newspaper you get social media is the next media you're see iing a lot of garbage out there. >> facebook in a way is on the side of -- >> how things have been done we're just media platform people they put whatever nonsense they want >> pointing out that broadcast networks can't really sensor political advertise, but there's a higher buy in to get on. >> and i agree with you, eric. i think criticizing facebook and mark zuckerberg feels redundant at a time when everyone is going after them, but i feel this debate reaches a new frontier when your competitor, jack dorsey, says no, what you're saying is wrong, mr. zuckerberg. we are going to ban political
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ads. by the way, i may add, i hear dorsey and zuckerberg were pretty good friends in silicon valley so it's breasting >> they may still remain friendly even if they have different views on this situation, but twitter shares did take a hit on this because what it does do is take away a revenue source for twit ter at a time -- >> which was not small >> it's not a big one but the idea is how u are you going to actually make your company grow? and with facebook, it's a bee hee moth an 800 pound gorilla they've gotten so many people t advertise on their flat forms. when you talk about twitter versus by the way, twitter has lost about $11 billion in market value since the middle of september. a lot due to the earnings report where disappointing already. so if you look tat way things shape out now, the t going to be interesting whether or not you can get some of those people to actually tune in more to your
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platform if you don't have the engagement >> you don't need the ads because you could be a regular person so it's good for pundits, people that have f a big platform if you're president trump, you can still say what you want, don't have to pay for it >> twitter has a great chance next year because it's an election year you've got the olympics coming up whether or not you need to ads, maybe jack dorsey feels the it's a good trade off zpl if facebook had gotten rid of it, wouldn't really hurt. but it is interesting to your point on facebook that zuckerberg's point is it actually is better for the small rer voices, the people who don't have the big reach the people who aren't already -- >> women's empowerment these other initiatives that need social media as a tool to make their message mainstream. >> dorsey put this out at the time of facebook earnings. it was a clear poke in the eye >> influencer to put it on their account. >> whether it's true
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skipping ahead los angeles is reportedly suspending uber's permit to operate e scooters after the company failed to comply with a deadline to report usage uber has ten days to report this ruling and eefb though they're calling it an invasion of privacy, other operators including lyft have already complied with it >> i got some views. this is not a surprise they've been going back and forth for a year had a whole fight in the state assembly los angeles developed this open source data sharing platform that other cities around the country are now using so uber's trying to say we don't want to share this data with you because we don't trust the government who says we need to data to figure out where these things are going to go. we need to figure out where to put the leftover scooters. >> so the government wants data on where the scooters are. >> it will be drones autonomous vehicles. start tracking everything. >> is there an argument they
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should have that data? >> in my mind, yes because if you're a city planner or you're anybody who works in logistics around a major u.s. city, you need to know where the people are gravitating towards the same reason you want to know how many cars duothrough certain intersections. how big of f a deal it is, what the average travel time is in certain areas. the it's meant to help optimize efficiency yes, it's data you use and your data, but it's there to serve a bigger, greater good >> what's uber's beef? we don't want to share because we don't think customers will be comfort snbl. >> we believe the los angeles department of transportation requirements to share sensitive data comprises our customer's expectations of data privacy and security >> forefront of customer service. >> so interesting. the stock is well below its ipo price. this is a time when they were be trying to penetrate new markets. whether it's uber cars or scooters they need the money.
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uber needs the money >> i'm surprised they're pushing back so hard >> l.a. does all these other cities are going to copy. not just what happens in l.a >> i'm useded to headlines about whether we should been scooters because they're scooters, not because they won't share their data but that's another discussion. next up, she may be headlining the event, but even taylor swift may not get the chinese to buy american products. a new survey says 78% of chinese consumers say they'll avoid buy ing american brands in favor of chinese products and more than half cite patriotism as the main reason it's hard to tell how much to take this at face value. >> can i jump in that's not exact ly what the survey says. you've got to go from the article to the other page to the day the to the real survey it's like we would consider maybe not buying american.
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we think the trade war might impact our decisions, but we want to buy all these other goods from these other countries. >> but sometimes -- >> more bark than bite >> sometimes with the chinese, you have to read through the tea leaves the headline is that the chinese prefer chinese made products over american. >> there was f a great journal piece where they talked about how chinese buyers are going to the lee mings of the world instead of nike. >> or lucken versus starbucks. >> american consumer package company. is there an increasing knowledge and awareness about the patri patriotic aspect of buying chinese. >> if not, there should be and it was foreseeable this idea that you have a whole u.s. versus china situation developing on trade means that the government even through its propaganda channels is likely telling its citizenry that the u.s. is bad and china is good. the it's us against them it's going to bleed at some point into consumer behavior but what it speaks broadly to is
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this notion that for the longest time in america what you want stood sell a toothbrush to everybody in china >> right >> and that was the way you were dwoi going to get rich. >> it's different now in trying to counteract those cultural biases >> it also depends on the category >> the maker of gucci, they continue to kill it in china nike as well >> starbucks, that's place to watch. i'm still wondering if people are getting upset she's performing at alibaba. and steph curry suffered an injury of course already sidelined is klay thompson with a torn acl suffered last season is this the end of the warrior's designty, but the problem is is they have this new massive stadium. >> billion dollar chase center only the second home game of this season.
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>> that's the diversification they've made here. this team's not going to be good anymore. we piqued, now we're doing concerts, charging a lot for everything else. it's a new asset we built. >> how's it going to affect his golf game? >> probably not going to help it >> he's a brantd ambassador for callaway >> i don't know if it's the curse of the stadium or empire state building, but you've got to feel for him. coming up, too fast, too slow president trump blasting the fed on rates should the fed act r me ke e ntl nkof germany or japan as the president suggests? that's next. as usual we were behind schedule. but sophie's enthusiasm cannot be dampened. not even by a run-away donut. we powered through it in our toyota prius. because a star's got to shine,
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welcome back stocks are sliding today one reason, weak manufacturing data pmi hitting its lowest level since 2015 the president blaming the fed. blaming democrats and every one else except himself. he tweeted it was wrong from the beginning and the u.s. interest rate should be lower than germany and japan. joining me is chief investment officer at the legal advisory
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group. take us include the decline of how much do you think is data driven, china weakness >> the last couple of weeks we rallied on two catalysts another rate caught by the fed of and hopes of a china rate deal now we have issues about what kind of daily are we going to get whether it's even completing phase one or forget about even phase two. you throw in chicago and you throw in possibly the impeachment and the catalyti juice for the market is expe expending itself >> the president not only reiterating that saying we should have lower interest rates than germany and japan and others you would have a quite different reading of that. >> i'm guessing the competitiveness add advantage is the currency let's look at japan. they have been easing for 20 plus years and the japanese bank stocks are down 90%.
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the boj has killed their bond market has destroyed their saving class. look at europe it's down about 80%. >> they say the central banks haven't done enough. you say central banks are causing the problems the u.s. fed should not go the same route >> europe and japan have killed their banking system most of the lending in europe is through their banks. it's not through the capital market these aren't good situations that we want to replicate. >> the president says china is not our problem. the federal reserve is is he correct in the sense that china is not a culprit here? >> no. the cost of capital is not a combining restraint on any economic activity now. we know how low it is.
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it's alarmingly low. it's back to what it was in october 2008 remember how dire things was in 2008 that's not something that, i think rates aren't going to stimulate. >> if you're buying car, the problem is the cost of car is at a record high and it's 60% median income. a 25 rate cut will not matter. >> it's helps the economy, helps the stock market it's resolving trade situation >> that's the problem with tariffs. it's eliminating tariffs once you get in, it's almost impossible to get out and you use tariffs as a tool.
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>> thanks very much. coming up, we'll take you inside the merger rocking the auto world today the pounoprtities for what could become the fourth largest car maker. that's straight ahead. stay with us with a better way to track where you spend. a new level of privacy and security. daily cash you get back every day. and no fees. not even hidden ones. oh, and if you happen to be somewhere that doesn't accept apple pay yet, there's this. nice. if you're on medicare, remember, the annual enrollment period is here. the time to choose your medicare coverage... begins october 15th and ends december 7th. so call unitedhealthcare and take advantage of a wide range of plans with a variety of benefits... including an aarp medicare advantage plan
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welcome back fiat chrysler is merging they lag behind in the electric vehicle market is this the right move phil has the latest. what are you hearing >> on paper this deal does make sense because you have two companies that complement each other. it's a 50/50 merger. it would create the fourth largest auto maker combined sale, 8.7 million vehicles and they would have the sd scale to combine for costs of developing electric vehicles this is going to help them get exposure to north america. from fiat chrysler, this is the scale they need in order to bring down those development costs for electric vehicles. as far as investors, how do they
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feel about this, look at the split. fiat chrysler, investors love it they think it's the logical next step kelly, this is not surprising. we will see this more in the industry over next couple of years as auto makers look to bring down costs why do you think chrysler investors are so happy about this >> they need to do more in terms of growing worldwide peugeot is a nice move in that direction. i'm not sure how much more we'll see. you already have so many large automakers it's tough to see a volkswagen getting together with a general, regional auto makers there's not that many left to
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combine. >> we appreciate a little context on this one which will create the fourth biggest car maker in the world and finally completes a merger for chrysler. thank you, sir that does it for the exchange. i'll go join tyler and melissa for power lunch which begins now. we'll see you over here in a moment welcome, everybody here is what's new at 2:00 stocks are under pressure. a sign of a manufacturing slow down those are putting recession fears back into the market as it treats from all time highs have we seen the best of the record rally or is there many r to go? we'll debate that. jack on the attack the twitter ceo taking direct aim at mark zuckerberg


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