fb, more pain. down 8%. that does it for us. more "fast" at 5:00 p.m. this evening. follow me on twitter as you can always do. watch "power lunch" which starts right now. halftime's over. the second half of your trading day begins now. >> indeed, it tuz. welcome back, my friends, to the show that never ends. i'm not talking about "power lunch." i'm talking about europe. the problems over there c'est la vie. the big question we are asking our big quest is why? here in the u.s. the bulls firmly in control. at least for now. the dow, the nasdaq, the s&p, the russell, gold, all of them except for gold which has turned lower in just the past hour or so, all of those other ones are higher. sue herera is in the middle of it all down at the floor of the

new york stock exchange. she will run us through the numbers. now, however, a brand-new segment on "power lunch" today. it is called analyze this. watch out, robert de niro. watch apple rise. watching it has been. up $6.26. now to the floor and sue. >> good to see you, ty. it has been a pretty good day for the bulls on wall street. we're losing strength, only up about 77 points on the dow jones industrial average. jpmorgan's global strategist is here. also matt teslock. we are well off our highs of the day. i was surprised given the headlines over europe over the

weekend we did as well as we have. >> normally we have europe bringing weakness then u.s. rallying after europe closes. today we've had the inverse. we had the debt rating cut on europe. so i think the market itself is surprisingly strong. but beauty is in the eye of the beholder. i'm not so posztive on this. i'm not so positive on housing we've seen in the past. i'm skeptical. >> joe, the weekend summits basically brought a lot of headlines, but not as much action. we're going to talk more about this later. give me your headline read on where we stand right now with europe and greece and spain. >> i think there's a lot to digest. as a result of the market going back and forth a little light volume. at the end of the day i think we're taking baby steps in the right direction. but the fundamental problem still remains. it's likely going to lead to increased volatility over the next month or so. >> we'll talk about the worst case scenario and best case scenario with you in a few minutes. are you optimistic overall? >> cautiously optimist ugh. there's an economic problem. when you look at greece the

issue is as much political as economical. it's difficult to predict and forecast what the greek voters are going to do. >> that's what you have to do. i have to look good on tv. thanks, joe. see you in a few minutes. last week u.s. dollar index eight-month high there. so far this month it's been up 17 of the past 19 trading sessions. how do you play this stronger dollar? with us for the hour, danny hughes. founder and ceo of divine capital. >> one idea we have is em res koe. amsc. trades with a peo 16.3. stocks about 11.20. they invest in infrastructure efficiency. they actually give you benefits by projects where they provide financing for anything that you do infrastructurewise in smart building. that's one play that we like. >> the other one was? >> the other is old republic.

we're looking a little bit differently. this a big insurance provider in the u.s. they've been around for a very long time. pay a nice dividend of 7%. once they do a spin-out of their mortgage business they actually are -- >> why is this a dollar play, an insurance company? >> when we're looking at a long-term growth of american real estate, for example, that's one way to play the dollar. >> aha. >> stronger u.s. >> we'll be back with you for more in a little bit. sue, back to you. as you know we're up today. what's not very clear is what happens next in europe? we're going to talk about that throughout the hour. rick santelli has some santelli solutions for us on what he thinks they need to do to get things together over there. ricky? >> sue, nothing is going to be easy. here's a plan, nonetheless. one of our guests just a moment ago referred to some of the downgrades of european debt. what we need to do is we need to get the debt off the books of these problematic banks. we need to insulate investors from some of the problematic loans.

i say a hybrid form of brady bonds is in order. we need to have the european union and the weaker countries finally swallow their pride and admit they're no better than emerging markets in many respects. by clearing off the books i think you'll allow the weaker euro to do some benefits to some of those european banks. number one is brady bond hybrid. why? imped it with some calls to things like gold which many countries in europe own. second thing is a when issued d-mark. let the weaker countries stay with the euro. have the strong country, germany, and when issued d-mark markets set up almost immediately so they can move into the d-mark leaving the rest of the countries with the euro. while that process is going on you want to implement reforps. you have these reforms to be very simple but very broad based. obviously entitlement reform. hey, you can't work 17 years and then get many of these services and many of these benefits as

they do in greece. small businesses, any business under x, maybe 5 million euros. a very quick track way to open up. of course, labor reforms. and tax reforms. maybe a flat tax. the final point would be they need a constitution. in the u.s. we started out with the articles of the confederation. it led to a constitution because states had too much power. no federal overlay. put a six-month constitutional convention in europe. don't take any extensions. of course, the final product, an all european referendum. tyler, back to you. >> thank you very much. the santelli solutions. there are reports floating around today that fox con, one of apple's big chinese suppliers, has received an order for a trial production of what could become apple tv. right now we have no other details. but we're trying to nail them down. shares of apple moving higher as we mentioned a moment ago. up $5.85. more than 1% at 5.6815.

year to date up 40%. that's a good year in 4 1/2 months. facebook time. if the stock wasn't volatile enough since the ipo investors can now trade options on facebook. shares dropping below the $30 mark and right now they are at $29.43, down more than $2.40. $2.48 to be exact. kayla tausche on the facebook options. kayla? >> tyler, many investors are ditching their facebook shares today. why wouldn't you if there's suddenly a cheaper way to get some skin in that game? that's what's happening now that options are available. options trading has become strongly skewed toward puts with volume which was light at the open really ratcheting up throughout the morning. as of noon eastern some 200,000 contracts -- or 150,000 contracts, rather, had traded. now that number is near 200,000, putting it on pace to be the most actively traded corporate option on day one. of course, options let speculators take bearish or bullish bets on a name at a

lower cost than buying the shares outright. certainly some of these trades may be outliars. a sweet spot representing roughly 6% of today's volume has been the yjune puts at $30 a share. if the stock keeps moving down as it is now, those put buyers will have to buy shares for $30 regardless of the price at that time. implied volatility on facebook is about 60% which sounds high, and it is. about double that of apple when it was trading options. that also means investors think the stocks moving around will be less aggressive in the coming weeks. in the meantime, tyler, you have a position in facebook options could be a good way to hedge. with stock estimates between $14 and $48 and the options window just about as wide as that it's not for the faint of heart. >> that may be an understatement, kayla. automakers starting the summer season with pretty much a bang. revving up huge sales over the

memorial day holiday weekend. phil lebeau is live in chicago. they had a good three-day wo weekend. >> we called around to a number of dealers. here's what we're hearing from them. essentially strong sales and traffic over the weekend. the three-day weekend for them. one virginia auto dealer said, listen, this was the best weekend since cash for clunkers back in 2009. japanese brands in particular very strong. sales surging due to a full supply. remember, a year ago because of the tsunami and the earthquake they didn't have a full supply in showrooms. some toyota dealers are saying sales would double this weekend compared to what they were last year. take a look at japanese auto stocks. since the beginning of the year they've started to move much higher relatively speaking because they've had a full supply in showrooms. look at the auto index as a whole and compare it with the dow. what you're seeing there, tyler, europe. people are still worried about the impact of europe on the automakers and auto industry. that's why the auto index is lower relative to the dow.

>> thank you very much. from iconic auto brands to an iconic retail wesh the legendary hedge fund manager bill akman making some pretty big calls on jc penney. he did it on "squawk box" this morning. >> i would say the bottom for sales in jc penney, down 18.9 is going to be the bottom. you'll start to see real progress beginning next year. >> progress next year. mark his words, danny hughes. what do you say? how do i play jc penney at these levels or do i not play it at all? >> i don't know if you play it at all, tyler. i'll tell you why. it takes a long time to change an image. i think that jc penney has had an image problem for a very long time. i'm not saying that it can't be done. i would say that you may want to look at something like family dollar. interestingly, ackman actually reduced his holdings of family dollar last quarter. and we think that that's more of a play. it has a small dividend.

a little over 1%. they don't have an image problem. sue, over to you. >> thank you very much. the oil market was stronger this morning. not so right now. down about 21 cents on west texas intermediate crude. one reported reason for the surge earlier on was pessimism over those on again, off again nuclear talks with iran. light sweet crude off about 20 cents on the trading session. oil clearly is also an issue for europe's house of economic cards. just last week europe vowed that starting july 1st an eui ban on iranian oil will begin. global market strategist with jpmorgan funds, you've set out a worst case and best case scenario for europe. let's start with the worst case scenario. what would be the worst case scenario after talks this weekend? >> i think the worst case scenario for greece specifically is that the far left party actually gains momentum and wins the june 17th election, reneges

on its fiscal pact. that ultimately leaves greece with a difficult desuggestionci having to default on debt which leads you to some probable exit of the old currency. can that be contained? that's what markets are worried about. understandably so. if it can't be contained you'd probably see bond yields along the rest of europe start to soar again. >> the best case scenario, i assume, are they are able to form a government. embrace austerity measures. we take steps towards a more cohesive eurozone. >> absolutely. not only accept the austerity measures as they are, but also to have germany come in and realize that you need to have a growth pact. austerity alone simply does not work. i think we've seen this over the past couple of years. you need to restore growth in

europe. >> spain were the only one of the borises that wasn't able to form a resurgence at the end of the trading session today. if you believe that the market knows everything, the market's telling you that house is definitely a house of cards. >> on the surface look at spain's public tet death. it isn't too much of a concern. look at the banks in spain. their exposure to real estate, obviously understanding there's a negative feedback loop there, if these banks need to take more and more writeoffs, as a result of that they can't go out and buy these spanish bonds pushing bond yields higher. creating this negative feedback loop. you look at banks in spain you realize the problem there is obviously much bigger. the issue is never just greece. the issue is what happens if greece goes down and you have this domino effect. can it be stopped? >> we'll talk about that later and investment opportunities. interested to see whether you see any in europe at this point. coming up next, donald trump always interesting, throwing his money, his weight into the race. supporting mitt romney at a

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tonight is the night mitt

romney will finally have enough delegates to ensure that he is officially the republican nominee. reaching the magic number of 1,144 after the polls in texas close. now, the presumpive nominee is going to celebrate not in texas but in vegas at a fundraiser with none other than donald trump. a relationship the white house is eager to highlight and the donald says, bring it on. our chief washington correspondent john harwood is on the case. john? >> reporter: tyler, it's an interesting night. mitt romney is looking forward to the good news that he's expecting to get from texas. finally get over the top after a turbulent primary season. he's going to be doing it as you mentioned in the company of a controversial, frequently ridiculed figure. that is to say donald trump who flamed out in the republican primaries himself last year. but now is reviving the issue including on cnbc's "squawk box" this morning that characterized his campaign, the birth certificate issue. >> a lot of people are questioning his birth

certificate. they're questioning the authenticity of his birth certificate. i've been known as being a very smart guy for a long time. i don't consider myself birther or not birther. but there's some major questions here. and the press doesn't want to cover it. >> now, the romney campaign has put out a statement distancing itself from the comments of that very smart guy in his own description, saying that mitt romney believes that barack obama was born in the united states. but the obama campaign came out preemptively after donald trump first raised this issue last week with a video today criticizing romney for not being more aggressive like john mccain was in 2008 in shutting down this kind of inquiry. it's a harder form of what the president himself tried to do at last year's white house correspondents dinner with this bit of mockery. >> no one is prouder to put this birth certificate matter to rest than the donald. and that's because he can finally get back to focusing on the issues that matter.

like did we fake the moon landing? >> now, mitt romney told reporters yesterday he can't be responsible for what all his supporters say. but there's no doubt about the fact that he wants to get the conversation on the economy and, tyler, the proof of that is the new web video that mitt romney's campaign put out today answering the attacks from barack obama on bain capital by going after the stimulus plan and some of the failed enterprises like solyndra. coming up, ty, we're going to give you research that pros react to. a brand-new "power lunch" segment we call analyze this. also > alahead, a little pi of mark zuckerberg's honeymoon as that stock, facebook, falls below the $30 a share mark. ty and i are back in a flash.

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hey, i'm jackie deangeles with your market flash. sales of vail resorts rising today. going from a hold to a buy. price target of 53. ten bucks above where the stock is trading now. we saw a recent dip in the stock. investors have a chance to get in now ahead of the next ski season. unseasonal weather this year was difficult for a lot of the resorts. there's always next year. a brand-new segment on "power lunch" today.

they call it analyze this. i'm de niro. you're billy crystal. we promise to keep tabs on these picks moving forward so you can decide which analysts you want to follow and which you'd rather forget. first let's look at jeffries. reiterating a bullish call on target. saying we're forecasting a comp store sales increase of -- what does that say? 3% to 4% consistent with plan and essentially in line with consensus expectations. are they right? do you like target? would you buy it? >> i like target and i would buy it here. in fact, target may have benefited from the great weather that we've had. their same store sales have been phenomenal. >> 3% to 4% doesn't sound out of line to you? >> it actually looks pretty optimistic. in this declining type of environment that we have, people are going to look more and more for value. they find it at target. i'm a big shopper at target

myself. >> after all the golf balls i lost this weekend i'm going to target to restock. reload. jefferies. you'd buy in on that or support jefferies. goldman sachs changing its outlook on the coal sector saying definitively we raise our coverage of attractive to neutral. pullback in prices leave us with attractive average upside for the coverage group. have these stocks fallen enough they're worth looking at? >> 60% is a lot. >> that's a lot. >> i think the entire segment is falling dramatically. goldman's call today really helped a lot of things including btu. it's also helped joy global which i think is another good call in this space. all the coal industry is benefiti benefiting from this. they've had a tremendous pullback. you also could look, too, at natural gas. natural gas is the reason why coal has gotten clocked. it's been a lot cleaner. utility companies have moved to natural gas. that's one reason perhaps why coal has had this pullback. long term, though, i think

natural gas is really going to be the play. umg is actually an etf that reflects dollar for dollar natural gas. >> you don't quarrel with this call from goldman, basically? >> i don't. >> coal is worth a nibble at the falloff prices we've seen. finally zach's making a call. apple remains the biggest growth story in tech. szacks right? >> it has been right. apple has been the biggest growth story, i think, that we've seen in a very, very long time. you know, apple always doesn't disappoint. i don't know if they do that on purpose so they have some words of wisdom there as well. i would say intel is also worth a look. they've got a new chip out that is called the adam chip. that will actually compete in the smartphone space. so i think we'll see some upside there. they also pay a nice dividend which apple does not. so they pay you to wait. >> apple has a little dividend,

right? they just started sf. >> very small. excuse me. intel's is 3.3%. >> basically on all three of those calls you don't have any real quarrel with any of those analyst's report right now. >> not a knock them, sock them. >> thanks very much. metals market closing in just a few minutes. we are going to hit the nymex with "power lunch" comes right back. that could adapt to changing road conditions. one that continually monitors and corrects for wheel slip. we imagined a vehicle that can increase emergency braking power when you need it most. and we imagined it looking like nothing else on the road today. then...we built it.

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down day for the gold market and a number of the other precious meet methtals prices. sharon epperson is tracking the action at the nymex. how is the volume? here it's kind of light. i don't know whether people over there are taking another day off for the holiday weekend. >> volume has been light overall at the nymex as well as you're seeing at the nyse. on these summer days we'll expect to see lighter and lighter volume. traders are watching spain and the euro. blame it on spain once again here.

the euro fell below the 1.25 level right around the european close. right at that time is when we saw oil and precious metals turn around and go into negative territory as well. as you mentioned, gold prices here, they fell actually to a low of 1,550 an ounce in the session. the real key level to watch for gold is around the 1,530 level the side we saw in silver even more dramatic. their traders are saying look for 27.50 as the real support for the silver market. other metals that have bucked the trend, palladium is one of them. actually the best performer in the metals markets in this session. that has a lot to do, george giro at rbc capital markets, the precious metals analyst there pointing out that auto sales we got from toyota, from honda, were pretty good. that is part of the reason we're seeing not only platinum rallying but also copper and platinum as well. back to you. >> thank you, sharon, very much.

trading action here, courtney reagan's here on the nyse floor. we had a pretty decent gain that's slowly kind of eroding. now up about 59 points on the trading session. >> we're just as entangled in europe as we ever were before. we were higher this morning. so was europe. france, germany, even greece. there is some optimism surrounding the greek elections. but those worries about the bigger spain still lingers. spanish borrowing costs pulling back slightly under 6.5%. that risk premium over the german bund hitting its highest levels ever. yesterday the first time it's been above 500 basis points. we're there again today. we've got movement in the energy space, too. it's beyond really the downward movements that sharon was mentioning in the commodities themselves. crude one of them lower following the euro. look at chesapeake energy moving again today. this time on news that activist

investor carl icahn has taken a 6.6% stake in the company. goldman sachs upgrading the entire coal sector to attractive from neutral. upping peabody as one of them to buy to join suncoke energy and consol. eog getting an upgrade. rather added to its conviction buy list. it believes t-- last but not least, patriot coal very embattled. announcing new executives today. we'll see if they can turn things around. >> bob pisani was worried about the energy sector. thanks, court. good to see you. all right. to the nasdaq now and seema mody is following the big movers over there. >> hi there. chip stocks providing the leadership. investors are piling into these names.

broadcom up 2.3%. seagate tech taking it on the chin after a downgrade by barclays capital, down around 5%. biotech also in the limelight. vertex pharmaceuticals sliding sharply after correcting its cystic fibrosis combo data. investors really upset with that revision. i should say we are off our lows. stock down better than 11%. sue, sending it back to you. >> thank you very much. a check on the bond market now right now. rick santelli's tracking the action for us once again from the cme in chicago. we saw a little move into the bond market earlier this morning. is it holding? >> it's holding. we're going to get to the bonds. it's going to be the last train car on this train. let's start at the forensics. putting everything together. if you look at the euro, everything happened between 11:00 and 12:00 eastern today. you can clearly see how the euro gave up ground. we're all in one giant trade.

it begins and ends with europe. as you look at that, you see what everybody's been referring to. how much gold lost very quickly. didn't stop there. look at the s&p 500. how much ground it gave up. now we get to the protagonist here. this is what everybody wants to own. treasuries, bunds, gilds. yield pushed down to the lowest level where we still hover. lowest yield 1.68 from about a week and a half ago. intraday hovering at 1.71. everything occurred after the european close. sue, back to you. >> all righty, rick. thank you, sue. off our highs of the day. the markets, at least the equity markets still moving a little bit higher here in the u.s. how do you navigate ongoing concerns about europe and interest rates? our next guest has some ideas as part of our innovative portfolio series. allen reid is ceo of forward management. joseph tanouis is still with us down at the exchange.

innovation and ways to bring it into your portfolio. i know you're a big believer that the old ways of getting income in your portfolio, put money in a bond fund and forget about it, just don't work anymore. you've got to be more innovative than that. >> it's tough, tyler. think about it, $3 trillion has done that already. think about the herds we've seen in the last ten year. theng about the dot coms, real estate. we all knew they were too good to be true. >> what's my innovative move, then? >> think about doing a long/short strategy. we do that with our forward credit analysis fund where we basically go with long munis, xx mun munis. short treasuries. the challenge is now yeed to have a long and a short position, giving yourself an opportunity to make money in flat markets and defend -- >> not just your conventional plain, vanilla bond fund. is there another kind of dividend play out there that you

could go for if what you want is income? >> well, we just so happen to look at dividends. we just happen to. looking at it we took a strategy we've used for years in our preferred fund where we lever up slightly. clip coupons. that gives us an extra yield. we do that on an international dividend fund. we actually just launched an emerging market dividend fund as well. both of them yield over 6% as far as distributions. basically what we're doing is a dividend roll. 10% to 15% leverage on the portfolio. that increases the yield by 2%, 3%. think about it. treasuries yielding ten years less than two. 1.7, 1.8. we're yielding over 6. a nice way to get some income and some upside and not have such volatility that you would with a bond fund. >> i want to bring joe into this. the long/short strategy on the various instruments alan just described i think is very interesting. if you wanted to apply something like that to europe, are you

finding opportunities in the european arena? or not yet? >> i think there are definitely some opportunities. what you're seeing right now are investors sort of throwing out the baby with the bath water. there are a lot of companies in europe being penalized given everything going on. there's an opportunity for devalue managers to go in there and actively select securities poised to outperform over the long run. >> would you do the international play? in other words some of those blue chip stocks that have exposure to other parts of the world? maybe they're headquartered in europe but a nestle or something along those lines? >> companies domiciled in europe that gather revenues from emerging markets. from a tactical playtica favor. >> todd: united statthe u.s. is house in a lousy neighborhood. that said there are some clear opportunities in europe. i think it's important that investors don't neglect that. >> you want to react to joseph, alan? >> i think he's right. there's certainly an opportunity in europe. the question is is this the

bottom or where is it? i think as he laid out what's going on in greece, it's really the case. what we've actually been hearing is that you start to see the chinese bailing out. >> leaving european bonds into which -- and the euro into which they poured some years ago to diversify. they're coming back to the dollar. i know you have a very hot performs fund in your stable that is international real estate. why is that innovative in terms of generating income? i love the performance. it's up, i forget, 20%. >> just about 30%, tyler. yeah. what really we see is there's a lot of fear in the market. where there's fear, there's opportunity. back to my favorite -- what we see is it's trading at a 70% discount to its nav. this is going to markets where we know there's steady gret growth opportunity. basically in hong kong and chinese real estate.

we see continued opportunity for undervalued names. that's what the portfolio manager michael mcgowan has been hitting on. think about it. it's a real asset. the dollar, strong today. i don't know tomorrow. >> sue? >> that gives me actually the perfect segue. the euro is front and center. looming large over the nyse here down on the floor. that's what everybody is watching. a lot of people are saying that the euro has considerably more to go. other people say that we're near a bottom. how do you feel about it? and what's your projection? >> i think it's difficult to call the bottom of any market. i would agree directionally the euro is probably going to continue to decline a little bit. you're looking at this ongoing debate in europe. you have a binary outcome coming june 17th. it's either going to go in the right direction, you see some type of relief rally for risk assets altogether or it moves in the opposite direction and obviously markets fall a little further. it's important investors take a bit of a balanced approach and keep an eye on the polls. things are suggesting the greeks

want to stay in the euro. if they realize they're choosing between the lesser of two evils, my guess is that's the decision they're going to make. >> ty, i'll be back with you in just a second. first, we're going to recap some of the other big headlines in today's session. research in motion on the move. reports the blackberry maker may cut another 2,000 jobs. stocks at new highs. bed, bath & beyond. sher win-williams. according to case-shiller, falling 2% in that period of time. coming up next on "power lunch," london, paris, new york or none of them? the rich are playing musical chairs when it comes to where they choose to live. where they're moving and why, when we come back.

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all right. coming up on "street signs," want to get into bank stocks but avoid the troubles of the big guys? we've got some regional, the smaller ones for your buy list. battleground jc penney. what else? you heard earlier this hour a big hedge fund guy joined herb in the bull camp. next hour herb will defend his reasons to bet on a jcp turn around despite its recent slump. we were asking you, should facebook buy research in motion? vote yes or no. no maybes. streetsigns.cnbc.com. we'll reveal results during the next hour. for now back to sue on "power lunch." >> investors dialing into the telecom stocks. s&p telecom sector hitting a four-year high up about .5%. also the highest level since june '08. the big three in that space are doing so far this year, well,

sprint nextel up better than 12%. at&t up almost 12%. verizon is the laggard. it's still up almost 4% on the trading session so far. let's head to danny. how are you playing the telecom space if at all right now, danny? >> we are actually playing the telecom space. i think you named my top two, really. at&t has done very well this year. we like it for a number of reasons. not the at least of which is their repurchase program which actually has been in effect but actually has not been done since 2009 because of the t-mobile deal which fell apart earlier this year. pays over 5% yield. we like that name a lot. verizon as well, same story. they've done very well this year. they have a little bit lower dividend. a little over 4%. we like that name for the same reasons. they have a nice video application where they're trying to push data increases. >> how much more do you think -- it's got a 13.5% gain so far this year. how much more do you think could run in that stock? >> take a look at the telecoms

over the past ten years. they've really gotten their heads handed to them or phones handed to them or their data handed to them. i think we do have a little more to go. i wopt like to give you a percentage amount. if they pay you to wait, it's worth the wait. i would say it's absolutely worth it. then for a name that's a little bit of a smaller cap, tds, which is about a $2.7 billion market cap also paying a nice little dividend. we think that that name is one to watch as well. >> all right. thanks so much. ty? sue, this next story is sort of like musical chairs for really, really rich people. really, really rich. it seems the rich are country hopping. rich russians moving to london. rich americans moving to singapore. who's doing what and why? cnbc's wealth editor robert frank is here with some answers. robert? >> thank you, tyler. yes, the super rich are on the move like never before. i decided to take a look at the new migration patterns of the

ultra wealthy to see where they're leaving and where they're heading. one of the first places you mentioned was singapore to the united states. remember, eduardo savarin, facebook billionaire packed up his wealth and moved to singapore given attractive rates there. other foreigners are following. more than 40% of singapore's population is now foreign born. if we move on, the wealthy french are also headed for the exits. we know the recent presidential election there saw francois hollande proposing a 75% tax on the ultra wealthy french. many are moving to switzerland, a short hop across the border but a big tax break if they can get it. it's not just taxes that are drooiing out the rich. it's also political instability that is driving them out. we see, for instance, in russia where there was some noise around the recent elections and putin's election, a lot of the wealthy russians are moving to safer havens like london. the most famous example there

being roman abramovich. he likes to migrate by yacht. many other russians are following. there are now more than 1,000 rushs millionaires in london. in addition, we're also seeing the wealthy chinese seek safe haven given some of the political unstability there and economic slowdown. in the united states, the wealthy chinese have become the biggest users of our investment visa program. they've also become very big buyers of high-end real estate in the united states. so, tyler, what we have here, as you mentioned, is sort of a high stakes super rich version of musical chairs where for every ed war toe saverin moving in there's a rich chinese moving out. >> are they basically -- they're running from taxes. >> that's right. >> they're running from political instability. >> that's right. >> that's basically the story here. and the rich have options, don't they? >> that's right. you know, wealth will go where money is treated best. the wealthy are very mobile. they can run their companies from anywhere in the world right

now because of technology and the mobility of capital. if they see a more attractive place, they're going. >> is anybody moving to the middle east? moving from the middle east? >> mostly moving from the middle east. it's very seasonal. we like to see middle easterners in london for most of the summer. they're not packing up, moving since there's so much creation from oil. now to jackie deangeles for a market flash. >> watching shares of facebook today right now at 29, spot 29. closing in on that 29 level. down 8.25% on the day. despite the fact we're hearing potentially facebook might be looking to fwet into the smartphone business and also that they may be looking to make another potential acquisition of opera. opera making several applications for mobile phones. going to keep a close watch on that. again, facebook closing in at 29. >> thank you. up next on "power lunch," jpmorgan shelling out -- selling, excuse me, $25 billion

worth of money making assets to offset those big trading losses. is this a smart move? a dumb move? we're going to analyze that. plus, you just became a billionaire. you got married. so where do you take your new wife to eat on her honeymoon in italy? mcdonald's. come on, zuckerberg. we'll talk about that and more when we come back at 11 before the hour. at bank of america, we're lending an in communities across the country. fro omrevi htalielzeping t a neigbrhbooklyn..or.ho

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it is time for today's power runtown. joining us to do that, cnbc's jon carney and kayla tausche. good to see you. jpmorgan selling an estimated $25 billion in high yielding profitable securities, trying to offset the london wales $2 billion mistake in april. will this help the bank's bottom line when they report their second quarter results in june or is it foolish to unload some very profitable securities? ladies first, miss kayla. >> sue, jpmorgan for its part did telegraph it was going to be doing asset sales like this. yes, they're not exactly tax efficient.

they will help boost the bottom line in the near term. that's pretty much the point here. the other point is that we could see a lot of volatility in the quarters after this quarter for jpmorgan because, remember, they're going to hold on to a lot of these securities that get mark to market. some of them don't expire until 2017. >> what do you think, jon? i talked to a trader down on the floor here. he said it in one way is a move of desperation because they're trying to prop up this quarter. after they pay these taxes they're only going to have a net gain in terms of what they can apply to the bottom line of what is it, $625 million or something along those lines? >> it's smart to do a little earnings management in these cases. so selling assets makes a lot of sense. are they stealing from the future? that's the big question. if they're selling profitable trades now does that mean they'll have less to go in the future? >> what does your gut tell you? >> i say yes. i think they're stealing from their future right now. >> up next, rumors that facebook is getting into the smartphone market. can the social network compete with the likes of the iphone or the droids? would you buy a facebook phone? jon? >> i'd buy a facebook phone.

they've been hiring some very smart people, engineers to work on this. i think facebook has a really good way of interacting with their software. if they apply that level of intelligence to a phone operating system, i think it could be one of the most successful -- it's probably going to be built on an android platform. it could be the most successful android platform phone out there. >> do you agree, kayla? or should they stick to their knitting, whatever their knitting is given the way they're expanding? >> they're trying to attack this device issue as more and more facebook users use facebook on their mobile devices. i love my iphone. i view facebook as a weapon of distraction. i certainly wouldn't want to be spending any more time on facebook. i think they really have to shed that stigma first. >> i kind of agree with you, kayla. lastly, speaking of facebook mr. zuckerberg was spotted on his honeymoon, congratulations, in it italy with his new wife

priscilla this weekend. they were in rome eating at mcdonald's. is the billionaire on a budget? or, kayla, is it just he doesn't want all the attention of going to a fancy italian restaurant because everybody knows his face and he's 28? >> he borrowed against the company to even buy his house. he only cashed out shares so much as he needed to pay his taxes. even though he has high net worth his cash flow is at a trickle. my worry is remember last year he said he was only going to eat meat from animals he killed personally? i wonder what happened to that thesis. maybe he just wanted a burger. >> jon? >> mcdonald's when you travel abroad for young people, mcdonald's are almost like little mini embassies of the u.s. you get a little tired of talking to the foreign waiters, foreign waitresses. trying to order off the foreign menu. you wander into mcdonald's. you also have to remember the hours people eat in europe can be a lot different from the u.s. >> that's true. >> if you want lunch, maybe you

stop at mcdonald's. >> if you're having mcdonald's and you're looking at the coliseum, what could be so bad? >> sounds good to me. >> maybe he wanted to be a patriot. it's an american company. >> very true. thanks, guys, appreciate it. still ahead, as we just mentioned, facebook does want its own smartphone, apparently. we are asking, should facebook buy research in motion? you can vote yes or no. at streetsigns.cnbc.com. we'll release the results during "street signs" at 2:00 p.m. eastern time. "power lunch" is back in two. k t volatility. ttd#: 1-800-345-2550 in times like these, it can be tough to know which ttd#: 1-800-345-2550 way the wind is blowing. ttd#: 1-800-345-2550 at charles schwab, we're ready with objective insights about a a ttd#: 1-800-345-2550 the present market and economic conditions. ttd#: 1-800-345-2550 and can help turn those insights into ttd#: 1-800-345-2550 a plan of action that's right for you. ttd#: 1-800-345-2550 so don't let the current situation take you off course. ttd#: 1-800-345-2550 talk to chuck. ttd#: 1-800-345-2550

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let's get you up to date on the markets and how we sit as we go into the afternoon trading session. we've managed to hold our own, steady out. dow is up about 79 points. nasdaq 19. s&p 500 holding on to about a 9% fwan. gold selling off. not a surprise given what happened in europe over the weekend. finishing down about 17 bucks on the trading session. in terms of west texas intermediate it's come off its worst levels of the day. was down about 22 cents after a big opening this morn ing. now down about 3 cents on the trading session. ty? >> harr or liquid assets tied to the dollar moving lower. danny, your chart of the day. >> esco.