that stock too. financials start working and that's an area of focus for me next week. >> we'll see if that trend continues. by the way, guys, have a great weekend. we'll see you on the other side. that does it for us. "power" starts now. this is "power lunch." i'm michelle caruso-cabrera with brian, melissa and tyler. we start with breaking news out of belgium. a major development in the hunt for the suspected ring leader of the paris attacks. a live picture from belgium right now where we have been monitoring the situation all morning. sue herera has the details. >> thank you very much, michelle. here's what we know at this hour. this was an operation that began at about 4:30 p.m. local time. and it comes on the heels of a separate raid that took place yesterday in the town of forest. this particular raid is taking place in molanbique.

the attacks in paris killed 130 people. what we know now is there are reports that two people have been arrested and are alive. that's from an nbc news fixer on the ground there. we do not know whether one of them is the person you saw in that mug shot, which is salah abdeslam. there are reports he's one of those arrested. nbc has not confirmed those at this point. but there are various belgium reports he is one of those suspected, but we're waiting for nbc news confirmation on that. both are reported to have been wounded. this, of course, is the second consecutive raid, second day of consecutive raids in that particular part of brussels. and it follows the 2015 paris attacks. they have been look for salah abdeslam since those attacks. he's considered one of the primary leaders in that particular attack. isis claimed responsibility for the terror attacks in 2015.

and french president hollande has confirmed the raid is still undergoing. but he is not going to confirm whether or not anyone has been arrested. he does confirm, though, it is connected to those 2015 attacks. as soon as we get confirmation on who those people are that they arrested, and you saw that policeman leaving the molenbeek area, we'll get it to you. back to you. >> we saw a police van pulling in there, sue. we'll wait to see what is in there. he was the subject of this international manhunt that we covered for days and days. so there is intense -- you'll recall he was the driver, he rented the car that was used by the individuals according to the police for the shootings at the bataclan theater which were most of the deaths occurred, really horrific situation with so many victims within that theater. and he left and at one point had been stopped by police. they admit now, near the border. and they let him go because they

hadn't put out the all points bulletin for him at that point. they didn't know exactly who they were looking for. he got away when they were almost -- when he was almost within their grasp. >> and keep in mind, he is also the brother of the gentleman -- the person who blew himself up outside the cafe voltaire. so he's been sought, as you mentioned, michelle, as an accomplice in those attacks in various parts of the city. so and it was a multipronged attack on that november night. 89 people died at the bataclan theater. it is still a developing situation. although our nbc people on the ground there say it seems to be winding down. so we're not sure whether the policeman that left had the suspects in it or not. but we will keep you posted. >> yeah. key to see if it is him. if he's taken alive, that would be certainly insightful. thanks, sue. >> amazing, isn't it, he would have still been in that neighborhood, which i gather is

a known area where some -- where there is a lost activism. he would still be in that area and would not have fled, even getting out of the european union. >> would have been difficult to move at that point because he was so sought after. >> bin laden was basically downtown in a house in the middle of a city. >> hiding in plain sight also. >> exactly. shall we move on to the market just to check and see where we stand here after a very positive week. and continuing in a positive vain today. there are the industrials, up about 94 points at 17,575.93. the dow at a high for the year, positive for the year. financials helping to lead the way as you see right there. up about a half a percent on the dow jones sector measure. s&p also now higher for the year. you see it at 2048.

we take a quick check on oil. and he has the rig count here in a second. let's look at oil. there it is. down about half a buck or 1% at 39.76. >> the 12-week streak of declining rigs is officially over. if you had 12 in your rig pool, congratulations, you won. we were up one rig. we gained one oil rig. we gained a rig last week. i had a conversation with an oil ceo last night, interview on monday, getting to know each other over the phone and they had 96 operating rigs in america last year. they have four now. >> wow. when you get the rig count, do we have a sense of what each one produces per day? this new one, it is hard to know, right? >> rigs drill the wells. if they're drilling a multifracked well. the interesting thing about what

is happening now, i don't want to get too wonky, we have mr. wonderful here, a lot of companies are going back to the past, they're drilling vertical wells, nonfracked wells because they're cheaper. fracking -- it is amazing, you get one tube that goes into the ground and it could have 20 tubes going out. >> that's the fracking part. >> they do this crazy stuff. we're going back to there will be blood, you know he what i mean, i drink your milk shake, it is one tube going down. we gained one well. >> there you go. streak over. let's put the recent stock market run into context with shark tank investor kevin o'leary who joins us today for most of the program. chairman of o shares investment. good to have you with us. wonderful to have you with us, as a matter of fact. what do you think is going on in the market and what do you see over the next several months? why has it turned as abruptly as it has? >> i think a lot of people want to give credit to the fact of oil stabilizing and in fact increasing in value from where it was contemplated to go to the

mid-20s. i think everybody looking at deploying new money today is seeing a stabilization in the economy. the fed is quiet. we know that now. but i think we're going to end up with earnings, x energy, of close to 5% growth. and here is my real basis upon why i want to go long equities. i think if oil goes back down again, sub 30, we have decoupled from it because the long benefit of low input costs, eight, nine sectors of the s&p, are now being realized. we're finally starting to see it. so i'm betting if i buy the other nine secotorer es of the it will decouple. that's my investment thesis. we're going to decouple from oil prices. >> we're going to take a quick break and go to josh on west coast with breaking news. josh lipton on apple. >> well, tyler, apple's attorneys just now holding a background meeting with members

of the press, sort of outlining their arguments, we would expect to hear, next week on march 22nd when apple and the doj are head to head in the courtroom in riverside, california. apple pointing out that the government now wants an evidentiary hearing meaning a request for witnesses. you would hear testimony from both sides in this case. apple saying it is going to bring its leading cryptography architect and the attorney who dealt with the san bernardino case as it unfolded. apple also arguing some of the basic points we heard before. we should expect them to say, listen, the all ritz act this centuries old law which has been used to compel companies to assist law enforcement is not appropriate in this case, that the government is overreaching. also, we expect them to say, again, that if apple is forced to write this new software, it would present what apple calls undue risk, that hackers, criminals, foreign agents, could steal that softsoftware, put millions of iphones at risk and this argument that apple says it

would set a dangerous precedent if the government can force apple to write this software. what else could it force apple or other tech giants to do. and we have seen virtually every major tech company come to apple's defense in this case. this happens march 22nd, 1:00 p.m. pacific, in riverside, california. i'm going to be there. and bringing you guys all the headlines as they come. back to you guys. >> josh lipton, thank you very much. >> kevin o'leary, get your thoughts on what is going on between the justice department and the fbi and apple. where do you stand? >> i think how this is going to get resolved and i'm pretty sure i'm right on this is eventually they're going to do a data dump of that phone. they're going to deliver it on paper. they don't have to give anybody a code. give the phone to apple, let them bring the deliverable on pape paper, give it to the fbi. then apple will have to make the tough decision of actually making encrypted phones that no one can open including themselves which will be a huge inconvenience for customers down

the road when they forget their password and they got pictures of their babies in their phone and everything else. that's the only way to resolve this. give the fbi what they want on paper and make your phones so you can never, even as a company, open them up. >> what do you mean on paper? in other words, give them the -- everything that is on that -- open the phone? >> yeah. i was talking to my son who is 18 -- >> isn't that what the fbi wants? >> they should do it. >> they say we don't want the key to that phone, we just want the contents of that phone. >> and i think they should deliver it on paper. >> to do that, apple has to make the key which they have been resisting. >> that's the right thing to do. if there is any information there that can save one incremental life, get it out. then apple can make the decision and say these phones we make now are even unbreakable by us, end of story. >> that's what they're saying right now. >> no, the phone they have from the san bernardino case is something they can open. that's the older generation. and there are still millions of

them out there. >> where do you draw the line? you open the phone for this case and then how about another case where there wasn't an actual terrorist attack, and we're not sure it is terrorism, but they say maybe we can save one more life if we open this -- >> deliverables on paper. >> every time they have to open the phone. >> if you want to change the law, go to congress, change the law. for apple, if you're thinking about the future, you make phones unbreakable even by themselves. once they code them, that's it. you don't have the debate, we stop talking about it. this conversation is not helping this stock. this is not what you want to be known for, fighting and going to war with congress and the government. that's not great for a company. >> we're going to leave it there. kevin, more on this and other topics later. sit right where you are. chinese insurance company enbang upping their bid to acquire starwood hotels to roughly $13.2 billion. starwood responding saying the offer was quote/unquote superior to the one marriott offered. starwood is up nearly 5% on this

news. david faber has been watching this story, following it, joins us with the latest. it seems like the ball is in marriott's court at this point? >> it is. big developments this morning, anbang insurance and partners, prima sierra, a chinese equity firm and chris flowers have succeeded in getting starwood board to agree. $78, $2 higher than the initial expression of interest about a week ago, $78 a share in cash is a superior offer to that of marriott. marriott now, though, still is the merger partner of starwood because while they have reached a definitive agreement with the chinese, they have not signed that agreement at this point. they need to give marriott five full business days, until the end of march 28th, in which it can respond to the bid with a bid of its own. as i reported this morning, people involved in the situation expect that marriott will try to counter bid, at least communicating that in the roughly week since we first learned of anbang's interest in

acquiring starwood. does that mean that is going to happen? well, that's unclear and certainly we would expect that marriott will take its time here until the 28th to try to measure out just exactly what level it can go to, whether it believes it will be able to succeed in keeping this deal in tact with that higher bid to either match or exceed the dollar amount being offered right now by anbang. it is $78 a share in cash. there also is a share of a spin-off of their time share business called vistana. total value, roughly $83.67 to all starwood shareholders. key question here, though, what is marriott going to do? some analysts starting to weigh in this morning, i referenced a report that came out from ever court. marriott upping it by 16 bucks a share or 215. they say that could happen. revised $78 offer from marriott, 4% eps delusion in a year.

a slight uptick in leverage ratio. they think it is doable. doesn't mean it is going to happen. would 78 be enough because that is a cash and stock deal? marriott needs to as they have failed to do articulate the value of having starwood shareholders own a good healthy point part of the combination. and so that will be a key for what they choose to -- what level they choose to come to and how the board actually believes that that value is going to come through. another key consideration could be the chinese seem to be intent on keeping the management at starwood. marriott expected to get rid of much of the management and employees may have to leave as well given the synergies. they wanted scale. this is a key business for them to get that scale. should be an interesting week or so. don't forget, the chinese would need to get the review by the committee on foreign investments. so-called sifius. we believe they would get that. they got it from the waldorf

when they bought that. and they other deals in the u.s., nonhotel deals where they also have received the right to move ahead. >> michelle here, the ceo of marriott, this may be a tough weekend, because he's supposed to be traveling with the u.s. cuba business council to havana as part of the president's trip. and the company hasn't confirmed this, but there have been wide leaks that they're the one american company who may get a deal done with the cuban government for some kind of management deal or something. if you're going to london, it would be one thing. tough to make a phone call from havana, never mind negotiate a deal. any sense of whether that's disrupted at this point? >> you know, he will certainly have to be in touch with the office. in fact, i expect that there is going to be a meeting later today of marriott's board, simply to sort of continue to get updated and potentially say let's continue to move ahead with our efforts here to mount a counterbid. your point is a good one. if he's in cuba and not able to communicate, he ma i have y hav rethink that trip.

>> he has until the 28th. that's the longer time. in theory, coming back monday or tuesday. >> he might have some time. really you're going to -- if you're marriott, most likely you haven't withdrawn at this point. you'll want to -- perhaps make your best and final, but you wait until the final deadline to put forward that deal. >> david, is there any concern about anbang. not to be skeptical, but we pointed out when this deal crossed that this was a company with 60 million high -- 60 million in assets, 12 years ago, now 280 billion. the man who runs it is married to -- huge growth, came out of nowhere, bought the waldorf astoria last year, bought an insurance company, and made offers on the same day for two companies totalling $20 billion. i'm sorry to be a little skeptical. it is something that kevin o'leary couldn't even pull off, no offense. >> you're right. >> if you're taking their pape

paper -- this is cash. they actually have, i should add, they have the financing in place. the due diligence done over the week that is past since they first made their $76 a share offer has been focused on getting sure and making sure their financing is real. equity is in place. >> the partner, jc flowers and prima sierra, he used to lead goldman sachs china. >> i have a question for you. when is the chinese group going to play this card? you touched on it, synergy. if marriott buys this, they'll whack the whole back office. a lot of american jobs going out the door. the chinese buy this, they keep everybody to start a new platform in america. american jobs, high paying jobs, management jobs. when are they going to bring that forward? that's a very compelling argument. >> it is. i think, kevin, if they find there was opposition from sifius, i'm sure they would start making those arguments, perhaps make them anyway to ask for any fears on the part of the

committee for foreign investment. the question for the chinese remains, you point out, they own the waldorf, they're in the midst of negotiating with blackstone to buy this large group of hotel properties as well. and they may own this. one wonders when they start to consolidate some of their own efforts instead of having these things managed individually. >> this may be a back doorway if you're wealthy chinese investor to get your money out of china and into the united states because anbang, they're an annuity, they're an insurance company, but take deposits, some yield 6% annually. if you're expecting 6% annually, you better get a return on your money and you wonder if this is a way for people to say, hey, can we quietly through this vehicle get our cash out of china? >> maybe. some of the cap rates we're willing to accept on the waldorf is something like 2 plus percent. that's not matching up too well. >> kind of the point -- i'm trying to say something without saying it. >> okay. well, you know mane, i have a kn

sense for only the obvious. >> thank you, david. >> you're welcome. oil is down today. rallying recently and the wild card is always iran. how much are they producing now that many of the sanctions have been lifted? we discuss after the break. this is my retirement. retiring retired tires. and i never get tired of it. are you entirely prepared to retire? plan your never tiring retiring retired tires retirement with e*trade.

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pictures from molenbeek, belgium, where the police raid has been going on for the last 24 hours. and reports that one of the architects of the paris attacks may have been captured, may have been killed. we're waiting to see what is go on exactly. >> you can see there say crowd gathered. the camera, not our camera, but the camera if it turns you'll see the crowd looks to be a couple hundred people surrounding -- there you go -- where the police are and earlier reports that people may have thrown something at the police. you're not seeing that now. molenbeek surrounded by a expressway. it is a blue collar section of western brussels inside the beltway, no brussels. >> the individual that they have reports indicate salah abdeslam may be one of the individuals captured or killed. remember, he was the subject of a massive manhunt in the wake of the paris attacks in november. friday, november 13th. we'll see if he's been captured as a result of what happened

today. we'll bring you more when we know it. the world is waiting to see how much oil iran is going to produce now that so many of the sanctions against the country have been lifted. matt reid joins us now. matt, good to have you here. everybody has been waiting to see whether or not iran does what it promises. iran says they want to get up to 4 million barrels per day and reducing less than 3 million barrels per day because of the sanctions. here is what i don't understand, matt. the iea says they upped their production by 220,000 barrels. plat says 210,000 barrels. the what gives? how much more are they producing? >> well, of course, it is all guesswork on everybody's end. i would suggest, though, the iranian data isn't necessarily unreliable. the fact is that under the newer administration, under president

rouhani, the new oil minister, the numbers that have come out of the iranian oil ministry have been much more consistent internally. they certainly add up. and what we're seeing with some of the other estimates might also account for tanker traffic. might be some more kind of creative guesswork going on here. >> saudis have been critical of iran for a lot of reasons, matt. but as far as oil production goes in particular, suggesting basically that iran needs to cool it. i'm just sort of using colloquial language there. iran is, like, no, don't tell us to cool it. we need the cash here. do you think iran will pump as much as it can because it is that starved for hard currency? >> well, actually, the iranians are not starved for hard currency anymore. after the sanctions were lifted, in mid-january, the iranians regained access to old oil revenue. they had over 100 billion dollars, you know, in other

jurisdictions, where they had traded oil before and in places like china and -- >> couple hundred billion dollars in three months. >> they now have access to funds that they, you know, earned when oil was selling for $100 a barrel. they're also -- they have to be very careful of that money because they can't bring it into the system too much, too fast, because, of course, it would impact inflation. >> i have a question for you regarding technology purchases. i'm going to make the assumption now that the sanctions have been lifted, they have access to the cost cutting technology that any american company can sell them. european, french company. their production over the next decade is going to be as good as anybody else's in productivity. am i right? >> well, it depends. iran isn't necessarily a welcoming place to do business quite yet. a lot of european firms and american firms for them, iran is still off limits. but for the europens, especially, it is tricky doing business there. you still see even with some of

the initial export volumes, problems with payments, problems with insurance, there is still some hesitation here because some big companies and some big banks are still afraid of getting dinged for something like sanctions problems. >> and historically, their contracts have really imposed very onerous conditions on foreign direct investments. so it hasn't been as welcome as you mentioned. what is the bottom line? they're trying to get to 4 million barrels per day. are they anywhere near close? when are they going to get there? >> supposedly, they're still 600,000 barrels a day short by their own numbers, maybe a little bit more. they still have that far to go before they reach their old quota level they had in the mid2000s. that's now their target. they don't want what they were selling right before sanctions in 2011. they want a recent high that is still decades old. a decade old. >> and let's not also forget that iraq, we haven't talked

about them. >> the catch for the iranians now is they have their heart set on long-term deals. they know the only way they're going to recover market share is if they get refiners and traders to sign up to buy iranian oil for a year or so. >> got it, thank you, matt. matt reid from foreign reports. >> thanks. >> we'll take a short break. back with more with kevin o'leary and breaking news out of belgium. turns romantic why pause to take a pill? or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, or adempas for pulmonary hypertension, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours.

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welcome back to "power lunch." gold prices are closing now. they're lower by $11, $12.54 per ounce. the rest of the metals complex, all negative. platinum down by nearly 2% at this hour. melissa? >> let's check on the bond market now. 2s through 30s, slight bid there. bond prices are higher. yields lower. big tory in the bond market, the yield on the japanese ten-year and probably asking why am i talking about this? deeper into negative territory, hitting a record low and that's seen as placing a cap on how high the yield on the ten-year can go. 1.873%. >> thank you very much, melissa. stocks rallying again, the dow, the s&p, the nasdaq on track for a fifth consecutive week of gains. oil also up after breaking through $40 a barrel yesterday. down today by a little more than 1% at $39.71.

where are you finding opportunities in equities now? dan chung is ceo and chief investment officer of fred alger management. welcome. i appreciate your being with me. dan, two stocks you like are way up over the past year. one is facebook. the other is amazon. why do you think they have more room to run? >> well, facebook, for example, has over 1.5 billion monthly users. in north america, in europe alone, 300 million. that's three time the size of the super bowl. and the amount of time people are spending on the internet and in particular on facebook, they have over 20% of the total amount of online time spent. their advertising revenue represents between 8% and 10% of total online advertising. we think they're going to catch up and in effect they really have a long way to run before the amount of time --

>> a share from google, in other words? >> they're going to share -- the biggest shift we see, very dangerous, is tv advertising. video advertising. >> we hate to hear that in the tv business. making me very nervous, dan. >> yeah, sorry. >> quick thought on amazon before i turn to jill. >> amazon is continuing to execute on its business model for almost two decades now of lower prices, faster delivery and selling everything to the consumer. and they're continuing to be outpacing retail growth and we see initiatives also on the aws side being very exciting. this is a company that represents a long way of opportunity. >> dan likes a couple of companies that are household names that are up and up strongly over the past year. you look a couple of nonhousehold names that are down a little bit over the past year. who are they and why? >> well, we do look for opportunities when the market is down. at edge we tend to be a little

contrarian, looking for disruptions in the marketplace and then identifying good, strong companies that can maneuver through difficult markets and grow for the long-term. so two of the companies we like in the energy space right now are holly frontier and enterprise partners. and both of them aren't necessarily household names, but holly frontier is a refiner. and refiners, though they have gotten hit by the decline in oil prices, they aren't as linked to commodity oil prices. they are a refiner that turns -- they're based on crack spreads which turns the oil into petroleum products like gasoline and jet fuel and diesel. so we believe that when they got hit a little bit by lower prices, that that was a good entry point and over the long run it will perform quite well. and the other company that we like right now is enterprise partners. and enterprise is a much larger company, but it is dominant in the midstream energy space.

so it is an mlp. and one thing that we look for as a company that can pay a good dividend and grow that dividend over time. and enterprise has grown their dividend every quarter since 2004. so good balance sheet, good cash flow, can support that dividend and has compelling total return opportunities. >> dan, give me a thought on gilead. a lot of the biotechs whacked hard. >> yes, they have. so, i mean, gilead is a company whose dominant franchises are in hiv and most recently in hepatitis c. they have grown earnings from under $2 level to near $12 a level this year. the stock level only trades at 7 or 8 times earnings even as they have a free cash flow well over 12%. the reason is people are fearing that the success of this drug and the cash hoard they have built up is going to be spent on acquisition. we contrarian think the

valuation already discounts too much fear about what a top notch management team is going to do. what we point to is their growth in hepatitis c was based on an acquisition they did of foreign assets. we think the management team will do another great acquisition and this is significantly undervalued by the market. >> dan chung, and jill cuniff, we'll see you, jill, out in seattle in a couple of weeks at our iconic conference, first week in april. can't wait for that. >> i saw you were going to be here. >> stop on by. we'll send you information on it. >> absolutely. okay. >> thanks, jill. >> go to powerlunch.cnbc.com to see two stocks, two that dan and jill say you should add to your portfolio now, not tomorrow, not next week, now. that's powerlunch.cnbc.com. ♪ every auto insurance policy has a number.

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welcome back to "power lunch." i'm sue herera. we're following this breaking news at this hour. the ongoing police operation

under way in molenbeek, belgium. police arrested the prime suspect in the november paris terror attacks, which killed 130 people. salah abdeslam is in custody and reportedly wounded. he had been on the run from authorities since escaping capture last november when he was taken into custody at france's belgium border but later released. another suspect was also arrested in today's police operation. abdeslam was the driver of the car that took armed gunmen to the bataclan theater in paris where 89 people were killed. at today's briefing, white house press secretary john earnest says the u.s. is staying in close contact with their counterterrorism counterparts in europe. meantime, french president hollande is en route to the belgium prime minister's residence. today's operation caps two days of raids in belgium that resulted in the capture of four suspects connected to the paris attacks. there is still more developments in this story to come. we may even get some statements from the french president,

brian. when we do, we'll bring them to you. >> sue herera, thank you very much. more stock headlines to notify you about this hour. jpmorgan chase increasing its stock buyback program by nearly $2 billion. keep in mind this is in addition to the $6.4 billion authorization put in place last summer. jpmorgan shares up 2%. we have a big deal to report, keystone pipeline operator transcanada buying columbia pipeline group for $10.4 billion. this gives transcanada a big presence in ohio, pennsylvania, parts of new jersey. and aeropostale may be grounded. this comes after they said they may face liquidity problems after failing to solve a dispute with a major supplier. they posted 13 quarterly losses. the stock is at 25 cents, but five years ago, this was a $27 per share company.

kevin o'leary, do you think we'll see more retailers like this because everybody we talked to says america is dramatically overstored. too much retail space, given all the online activity. >> you know, it is leverage, it is always the story. if i dug into that story, i'll find out there was too much leverage on it for a down cycle in the space. and in a way this is the darwinian nature of business, we're scraping away the weak management teams, these assets will get redeployed. i don't really blame it on retail. i blame it on stupid deals. and so anybody that did a stupid deal is going out of business, it is going to happen here, in the energy space. i like getting rid of stupid management. >> leverage kills every time. it is absolutely the key. i want to ask you a different question. brian just pointed out, there was a stock, $27 a stock, now 27 cent stock. that's 99.99% decline. another stock in the news this

week. valeant which went from last august to 260 something a share, rig right? to what, 27, 29. >> in the 30s. >> in the high 20s, low 30s. how do you as an investor know when you got your hands on one of these stocks that is melting before your very eyes, maybe it was a stock that once loved you and you loved it back, and you had an emotional aattachment, hw do you know when to get out? >> i learned over the decades that there is one thing that turns a stock into radioactive waste. and it is the taint of accounting irregularities at any level. now, shorts try to use this very often. but if you get a credible sense that there is an accounting issue, particularly in an overlevered company, you have to leave. and you have to leave in perpetuity. i say in valeant, the way to do it is in the bonds now. i make the conservative assumption that stock is zero

because there is so many covenants and so many layers of debt that if i wanted to be an investor and i've done this in the past, i hire a team of guys to go read the covenants, figure out where i want to be in the debt structure, get involved in the litigation, all of the value and bausch and loam, lots of assets there, all the assets will transfer to the debt holders. >> you were saying yesterday. >> and so for me, to go look that the deal, would require a lot of work. but i think that's a zero. >> you think the stock is worth zero. >> it is a zero. and that's my opinion. a special opinion. >> does it matter? we have seen this script play out before. we have seen it a number of times. i was raising on fast money last night, you had this stog weck w loved by hedge funds. they didn't let go. they saw it turn. the business models for both companies changed fundamentally. there are questions about the accounting. wall street was slow on the trigger in terms of downgrading the stock. hedge funds still piled in. is it a concern for you when

there is a crowded hedge fund trade. does it make it even worse, would you stay away from those in particular? >> the hedge guys tend not to play the debt the same way they do the equity. the equity is far more liquid. if you want to make an investment, the truth is, valeant has a lot of good assets still in it. you have to find out how you like to own them, through the debt. i'll say one thing, though, the business model was actually killed by hillary clinton. she killed the company because their model was to use debt, pay market prices for assets, lever them up 80%, 50%, whatever it was on each deal, and raise prices 15%. that makes a lot of sense to me. when that model changed, and the whole canadian tax story changed, that's the end of the business model. now you're still sitting with assets you paid full price for. the bond holders will own all the assets. there is a lot of value there. if you like it, you go to work and buy the debt, which is probably -- haven't looked at the series lately. the stock is a zero. what you could do is, again, personal opinion, you short the

stock, you go long the bonds and find out where you want to be in the capital structure. five years late, you own the assets. by the way, whack the ceo, whack all the management, change over the board, all this news is coming. >> the bonds are up, 77 cents. now looking at the 2025 -- they have a couple of different issues. >> that's a 25% discount. >> it is. but not -- the bonds aren't at 20%. >> they aren't at zero. >> the stock, though, the stock is basically at a new low for the day and also for, you know, recent history. the stock continues to sell off. quick question, though. here is the thing about regular fd. these executives and they audit the results, they have to sign them. they have legal -- would you -- we'll find out if the guys sign these documents. >> when you get involved in a highly levered situation, that signature is a lot more risky because scrutiny that will happen here, the whacking stick is coming for all of those executives. that's just going to happen. >> all right. on the whacking stick note,

we'll leave it. we'll be right back. kevin o'leary, thank you. apple versus the fbi, what role does silicon valley have in helping the government fight terrorists? one of whom apparently now in custody in brussels. we'll talk to one of the silicon valley's top vc firms and why this photo of facebook's mark zuckerberg jogging in tiananmen square is sparking a big debate. we'll be right back. ♪ ♪ for your retirement, you want to celebrate the little things, because they're big to you. and that is why you invest. the best returns aren't just measured in dollars. td ameritrade®. it recognizes pedestriansligent driand alerts you.ems.

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money is becoming harder to come by in san francisco. but for some, that's a good thing. some in san francisco's growing increasingly frustrated with the rise in cost of living in the area. tech companies taking public space for events, company shuttles dominating the streets. one of the biggest voices facing off against the tech giants, aaron pesken, an elected member of the san francisco board of advisers representing district three where he's lived for nearly 30 years. mr. pesken, thank you for joining us. >> thanks for having me. >> what is the problem, mr. pesken? what is your big concern? >> well, it is the best of times and the worst of times here in san francisco, california. while we're delighted that job growth has been strong and that unemployment is low, it is also coming with more haves and have-nots. there has been a massed out migration in san francisco, our streets are increasingly

congested, our affordableability crisis is through the roof. a number of evictions continued to skyrocket and tech can be a part of the problem or part of the solution. we suggest that it is time for the air bnbs to stop converting thousands of units into illegal hotels for the tech shuttles to stop using every one of our public bus stops as delaying our public transportation for our citizens. those are the kind of things that it is time for us to do and tech had a disproportionate political influence -- >> that is air bnbs business model. that's their business model. how are the individuals supposed to get to work, the ones that contributed so much growth to the area? >> you're asking very good questions. as i said, part of it is not rooting against the hometown team, but bringing that team in and having them be a part of the solution. these billion dollar companies need to do their fair share. as a matter of fact, san francisco has given them tens of millions of dollars in tax breaks. now it is time for them to

invest in our public transit infrastructure, in housing solutions, in affordable housing, rather than just perpetuating and exacerbating the situation. >> your district three is one of the wealthiest districts in there, one of the most expensive, russian hill, knob hill, that area. isn't there an acknowledgement that air bnb does some good? if i'm struggling to meet my rent and i go to l.a. or see family, i can rent out my apartment and that could help sort of close that gap, can elevate people up by allowing them to monetize an asset they have. >> so the northeast corner of san francisco that i represent actually has some of the richest people and some of the poorest people. we have some of the lowest income census tracks in the entire city. in china town, we have the heart of the area of artisan poets in the city, many under extreme pressure. we don't have any problem with folks renting out a room in their house or renting their place out had they're on vacation or out of town to help

make ends meet. that's been going on for hundreds of years. used to be called the classified ads, later craigslist. but we do have a problem when unscrupulous speculators use that business model to buy up entire buildings, evict five and six units of housing and turn them into 24/7/365 hotels. >> aren't you worried when you request changes to what the market is doing naturally that you're going to in the long run affect the competitive nature of the city? an example, involved in a committee yesterday that decided not to use vancouver, even though it is trading in dollar -- and 25 cents cheaper, to hold a financial services conference there because they don't have uber. the city don't know they missed that opportunity. and here you are talking about shutting down a vehicle that is actually providing for housing. do you worry that when you meddle with something as broad as the market you actually diminish value? >> i think government has a role to play. i think government has always had a role to play in making

sure that the rules are adhered to, that rules are enforced. in the case of air bnb, that individual can use it to make ends meet without massive displacement. that's exactly the role that government should play if left unfettered we would not have a society and city that is the envy of the world. >> you said earlier you would like to see some of the large technology players that have been the beneficiaries of the tax breaks you cited. what do you want them to do with their cash? >> so i think first these organizations need to come in and start talking and rather than dictating to the city and to the elected officials how it is going to be, and i think it is pardon of the widespread d disconte discontent, which is the arrogance of some of these billion dollar tech company owners. i'm not talking about the folks

who work in the business who are neighbors who love and enjoy the city. i'm talking about this very top down mentality. i think there are ways to make the shuttle system work, rather than using every one of our bus stops, we can have hubs in different neighborhoods. this is not a yes or no question. this is about reasonable people coming to the table, coming up with real solutions. and relative to investment, i believe that billion dollar companies like google, like facebook, like twitter that are all here can actually spend money to help improve our public -- >> who gave them the ability to stop at the public bus stops in the first place? >> that's a good question. and by the way, as you may know, i was elected just this last november and in large part i believe i was elected because -- >> mr. pesken, i'm so sorry, we have to ruinterrupt you because there is breaking news out of belgium. to sue herera is standing by right now with the breaking news. 2:00 p.m. eastern time.

what is happening in belgium? >> you saw some of the live shots right there. it is evening right now in molenbeek, belgium, which is where the main fugitive from the islamic extremist attacks in paris in november, salah abdeslam, was arrested a short while ago after four months at large. now at this point there are two suspects that are still at large, if you will, after two days of raids which netted at least four suspects connected to the paris attacks. however, abdeslam was thought to be one of the primary people involved in the attacks. as you mentioned, he drove the car, rented the car, the volkswagen, that took a number of armed gunmen to the bataclan theater where a number of people were killed there. 130 people were killed at a rock concert, the national stadium, and cafes in central paris collectively on november 13th. reportedly salah abdeslam was wounded before he was arrested.

there are french authorities who are saying he was wounded in the leg and nbc has not confirmed that, but nbc has confirmed he is under arrest at this hour. the new york times is reporting there may be a news conference under way shortly. nbc is working to confirm that as you can see. this is a very active situation. it is still a developing story in the molenbeek, brussels section. the raid took place in a town called forest, not far from molenbeek. this area authorities thought there were suspects that were holed up in these particular neighborhoods. yesterday, the raid netted about four suspects. but police were somewhat surprised. they thought maybe they were suspects there, but they did not expect the return of gunfire that happened in that particular raid. as a result of that, they decided after the forest raid netted suspects they would try molenbeek, brussels, and they have arrested salah abdeslam. back to you guys. >> thank you very much. you can see there, 7:02 p.m. in

brussels, the sun starting to go down so the police are facing another obstacle, sunset, and the dark. to the markets now. the dow, it is back in the black for the year. it is posting some pretty decent gains now. we gain strength though. keep in mind, it is a quadruple witching day, all options expiring. things could get a little bit crazy the last two hours of trading. something to keep an eye on, the dow is up by 90 points. we're up .8% for the year f you add the dividend in there, it is a little bit more. can i quote kenney rogers? kenny rogers got it exactly right. you got to know when to hold them, you also have to know when to fold them. this will make sense in a second. kevin o'leary will stick with us. we made a deal. he'll stick for the next hour as well. we won't tell you what we had to give up. the reason i referenced kenny

rogers, we talk so much about when do i buy? how important is the skill of knowing when to fold them, when to sell. >> i think it is very important. i also think it is very important to have a long-term perspective on the things that are part of your long-term plan and to maintain more nimbleness when you have to be nimble. it is not just about the buy and sale decision. it is understanding the time horizon of different parts of your overall strategy. >> what does that mean? somebody is driving on the highw highway, 45 years old they got 20 years to retirement, what does that mean for them? >> to use your analogy, i think if it is part of the highway where the speed limit is 55, and you're going 40, on a nice day, that's pretty bad strategy. if it is snowing, that might be the exact right strategy. >> is it snowing? >> i think the right analogy -- there is no imminent downturn. but it is definitely a little bit cloudy and you have a bit of

spray kicking up from the highway. so we have seen these -- >> i feel like we're speaking very esoterically here. give me a percentage, for the average joe, the average risk tolerance. >> so over all of our clients we have many different situations, but on average, a typical client will have a typical long-term allocation of around 60% stocks. and today for that client, we're actually at 55. the reason for that is that markets are more volatile structurally today than they usually are. so the level of risk that you're taking when you're at 60% stocks today is actually higher than when you normally are bargaining for. >> let me ask you a question about that typical client. do you let a stock become more than 5 or 6% of their portfolio, apple, google, facebook. when do you cut a run that is going up? at what point do you say the client, that's too much of your

portfolio, we'll sell your apple, sell your facebook, we'll sell something. what is the trigger for you. >> we would never have a single stock be that high in a fully managed portfolio because the single stock risk is just too great. in fact, many of the clients who come to us may have wealth that was generated by owning a single stock. and in that case we recommend that if they have more than 10% of their wealth in one stock, they really should be trimming that exposure back because at that level, no matter how attractive the stock may be, it is driving the overall risk of their portfolio, which is really not a good idea. >> does that mean you don't use market cap weighted etfs? many are over 5%. >> we do not think the market cap weighted etfs are a great idea in this environment. we think the market overall as i said is pretty volatile. and that actually there say lot of opportunities to take advantage of inefish sys within

the market, both within the stock market and in the bond market, so security selection is really important. we think that just riding the market up and down is not the best strategy today. >> all right. seth masters, it is not quite a storm, not snowing, but drizzling, be careful out there, thank you for joining us. have a great weekend. >> zika virus still front and center. one of the companies leading the charge is up 20% this year. pharma and biotech reporter meg terrell is here with the latest on this battle. there was a great milestone for this company recently. >> just an update from the fda. zika is transmitted by mosquitos, and intrexon acquired a company last year called oxy tank that developed technology. it has been tested in brazil, the cayman islands and panama and shaz has shown the ability

to wipe out 90% of the zika population. we do have mosquitos in the u.s. and they are waiting on a go ahead from the fda to start clinical trials in key west, florida, and got that milestone a couple of weeks ago, i think, saying there was no environmental impact of this technology. >> and can be a study, further study to study this. let's bring in randall kirk, the ceo of intrexon. basically these mosquitos are genetically modified to mate with other mosquito and those offspring will never survive and that's how this happens. talk to me about, brazil and rio, the olympics front and center, rio is 144 days away, 8400 square miles and in your study it is very small areas that have been studied and this substance had to be released repeatedly for six months before you saw an 80% reduction in the population.

is it doable? what are you expecting? if you had the go ahead tomorrow, how much can you reduce the mosquito population in rio? >> what we showed in our most recent appeal trial, in brazil, we knocked down the insect measuring by larva count by over 80% in four to five months. there is a pretty immediate effect. and should be born in mind too, this is a two reservoir system. not just that the mosquitos are infecting men. it is that man is infecting the mosquitos. if you think about it in that way, there is a loop, right, if you can knock down the -- one of the disease vectors and knocking down man is not an option, you know, you can probably put a very significant impact in the disease incidents. though there are no epidemiologic studies to support this, we have plenty of experience with this technique. think about the fact that malaria used to be very common

in the united states. and in europe. yellow fever in many places in the new world. and how did we -- how did we solve this problem, we did it by eliminating the disease vector and it worked very well. i don't know anybody who contracted malaria in the united states or europe. >> you have the commercial go ahead in brazil to release the mosquitos. there are no more regulatory hurdles in brazil to doing this. what are the limitations to expanding this in rio as melissa was talking about to help the olympics. >> yes, well, the first -- there is one limitation, we can't help with the olympics because the brazilian equivalent of fda is an organization called on visa and we're awaiting a sales permit from them. >> a sales permit. >> we have their scientific body, which is called ctn bio, which is like their nih. so we have their good

housekeeping seal of approval that it is safe and effective and all that or at least safe. and our data will stand alone on efficacy. but we're currently awaiting and we expect anytime a sales permit, which will allow us to begin to do business with private entities and so forth. >> if you're an athlete, would you be concerned about contracting zika at this point or knowing your mosquitos, that there is going to be a reduction of mosquito population, is that not a risk in your view anymore? >> it is a very significant risk. i think zika -- i'm sure your viewers are getting sick of hear about zika. but the truth is, buckle up. it is going to get much, much worse. this is a disease, think about it, this is a disease we have known since 1952 that attacked human neurons. we have known since 1971 it travels along placenta. we already know from the recent outbreak in brazil and elsewhere

that it causes microencephaly in must borns and in adults, anybody, whoever gets the infection, can produce gillian bare syndrome. >> you would not go? >> i would not go. >> it is a huge problem. and that does seem to be something that is giving a lot of attention to intrexon lately. is that the right thing for investors to be focusing on as far as a near term revenue driver? >> i think it will be a near term revenue driver. i don't think it is undergirding our valuation. intrexon is very active in health. we have the broadest and deepest therapy portfolio of any company in existence. very active in food with the arctic apple. >> let's show that. just about out of time. i want to get to this part of it. you do genetically modify food

and these apples are the apples you modified and they have a trait now where they don't brown. this is the ordinary -- this is the nongmo organic apple, this is brown and this is not as brown. do you feel like you're coming out with the developments at a time when there seems to be a backlash against genetically modified foods. general mills saying it will label everything modified, whole foods saying today it will sell now slower growing chickens and not fast growing chickens which is the industry standard and you're developing a salmon which is a faster growing salmon. >> yes. first of all, whole foods, great stuff, right? i shop there. they're purveyors to rich people. so i don't think that's a model for the world to follow. 95% of salmon is not, you know, fresh cod alaskan salmon. and that's what the world really needs in order to -- in order to

feed itself. we're facing significant challenges going forward. our salmon simply grows to market weight in one half of the time and 30% less food. that's a $15 billion category. and, you know, i think it is just an absolutely marvelous -- consider the amount of study the fda and others performed on this thing. we know more about our salmon than we know about any other food animal on earth genetically, scientifically. >> you got to come back. thanks so much for joining us and bring us the salmon the next time, not just these apples. >> the battle over privacy, what role does silicon valley have in helping to fight terrorists? a startup will weigh in and why this photo of mark zuckerberg jogging is firing up the internet. tomorrow starts today.te, we bee all across the state, the economy is growing,

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man 1: he just got fired. man 2: why? man 1: network breach. man 2: since when do they fire ceos for computer problems? man 1: they got in through a vendor. man 1: do you know how many vendors have access to our systems? man 2: no. man 1: hundreds, if you don't count the freelancers. man 2: should i be worried? man 1: you are the ceo. it's not just security. it's defense. bae systems.

welcome back to "power lunch." morning jog, good way to breathe fresh air into your lungs. not if you're surrounded by industrial smog and car exhaust. speaking of which, check out this picture posted by mark zuckerberg. picture of him jogging the center of beijing in tiananmen square. immediately sparked a flood of comments from people about china's air pollution, which is so visible in the photo. plus, his ability to ask says facebook despite it being prohibited in china at this point. he's smiling. >> because he's trying to win

over the good fortunes of the chinese leaders who -- >> not so bad. >> the company is great. let facebook in. >> smog with smog. >> of course they allow it. they won't sencensor that. >> he spoke in -- he gave a speech in mandarin also. really trying to win over the chinese authorities. >> where else could he jog? if he went outside, cupertino, he would get mobbed. they're leaving him alone. >> would have been interesting if mark zuckerberg and the councilman, he's creating a huge problem. even other rich people is saying there is too much stuff going on. that's a battle. that's a reality show waiting to happen. another tech story, brian. >> another big chapter written in the growing fight between apple and the fbi because now some of apple's encryption engineers are threatening to quit apple if they are legally forced to build security breaking software for the fbi. let's bring in dalton called

we calledwell. we talked about it a lot. it is on the front pages of many newspapers. how much is this case capturing the attention of sill cicon val. is this bar conversation number one in. >> believe it or not, it is not. >> thanks for coming on. >> yeah. good to be here. great to see you again. there is not a lot to talk about in the sense that we agree with apple. i agree with the engineers. i think when you're an engineer, you think long and hard about the implications of the work that you do. and if you're a qualified enough engineer to be working at am on encryption, you can go work somewhere else. and so if you don't agree with the ethics, if you don't agree with the policies being implemented with your code, you can say, hey, that's great. find someone else to do it, it is not going to be me. >> why is there no conversation? is it because everybody is kind of like everybody is just on so

far on apple's side that there is not even a reason to have the discussion? >> i think that's right. i think reading the stories and understanding the technical details of it, i think it is pretty well understood that apple is on the right side of this one. >> what do you think is going to happen? >> i honestly don't know. i'm as curious as you. you can't force engineers to do this, so let's imagine the order does get pushed through, i would be very curious from a technical perspective how you would get engineers to do something that no one wants to do. i think it could get really interesting. >> it could be like a union slow out, right? we're working on it. we're working on it. don't worry, we'll get to it any day now. >> it can be very difficult if that happens for apple to comply. i don't fully know how that would affect things on a policy level. i don't know if a judge could force engineers to do it. >> i want to ask this one

question if i might. is there any possibility as you would see it that some smart hacker, whether employed by the national security agency, the cia, the fbi, whom ever, could unlock that phone? >> well, there is already a huge incentive for them to do that if a party -- if someone out on the world was able to do this, they would be able to mackke a lot o money selling this technology. i'm not sure there is incentive for a hacker to do this now. there is always arms race if you will to try to crack the iphone. it is valuable if you have the technology to do this. >> let me ask you a pragmatic question. is there a practical solution to simply get the data out of the phone, print it on paper and deliver it to the fbi? if we have to somehow solve this, is that not the solution? apple can do that. they don't have to give up anything to do that. why isn't that an outcome that would work for everybody? >> so there is some subtlety

here. my understanding is i read it and please correct me if i'm wrong, it is that because the pass code was changed on the phone, the normal protocol that you use to get data off the phone couldn't be done. is that correct? like that's the normal route that this happens and there was a route to do it. and because the pass code was already changed by another civil authority, it put it in a state -- it would be impossible to pull the data off. that's my understanding. >> i believe that's correct. because there was the initial attempt locally to deal with this. and then something happened. >> correct. and so this is a very strange state where the normal protocol, like, you're right, from a reasonable perspective, the normal protocol to get data off the phone does exist and seems like both parties came to an understanding on that. this is just an extreme special case that requires a complete new operating system to be built by apple, which is a very high bar. it is -- it destroys all of their basic encryption stance by

having to make a special operating system because of an extreme special case. >> to do what kevin says, they would have to come up with a totally separate -- maybe not totally separate, but a totally separate operating system, impose it on that particular phone, right? >> that's chrebe >> that's correct. they would have to change the source code. an engineer would have to create a new version of i os, install t for this exact reason, which is a very extreme measure. >> as an extreme measure, one that is fraught with risk of having that particular -- >> it undermines -- if you were an encryption engineer, this undermines the whole point of your job. >> thank you. >> sure. the dow, look at this, rallying once again, building on the gains for the year. now up by 1% year to date. the three major averages aiming

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welcome back to "power lunch." i'm jackie deangelis reporting from the nymex with the energy close. while oil gave up much of its gains, turning negative into the close here, we are seeing the april contract under $40 a barrel. we hit highs in the may contract of 42. now closing just about at 41. interesting here because there was a turn in the dollar index today. that was part of it. as i reported this morning, there are traders out there saying they're skeptical of the rally that we have seen. a lot of it is based on this producer meeting scheduled for april and also, of course, the equity strength that we see this morning, but saw a decoupling today in that relationship. if we do have that producer meeting in april, these are headlines for the moment. very difficult to schedule. you do need to get those parties together to cooperate, to put an agreement on the table to actually freeze production and that is why people are worried about this rally. traders telling me a lot of it is technically driven and a lot of it has been momentum driven as well. even though we're in the higher

end of these ranges that we have been watching closely, we probably are going to see more volatility. remember, the april contract is going to expire on monday. that creates volatility as well. going to send it over to sue herera with breaking news now. thank you very much, jackie. we are watching breaking news out of belgium where an active police operation continues in the town of molenbeek. police confirming they have arrested salah abdeslam, a prime suspect in the paris terror attacks, which killed 130 people. as you can see, it is nighttime now there. there are reports just moments ago of two loud explosions near the house where the suspect was captured. and police are reportedly searching for at least one other suspect. abdeslam has been on the run from authorities since escaping capture last november at the french be french/belgium border. france's president hollande was in belgium monitoring the police operation. today's operation follows

another raid earlier this week, also near -- in brussels, which resulted in the death of another man whose profile matches that of an isis fighter who wanted to be a suicide attacker according to documents obtained by nbc news. meanwhile, here at home, at the white house, press secretary josh earnest says the u.s. is staying in close contact with the counterterrorism counterparts in europe. we expect a news conference at 3:30 p.m. eastern time and we'll keep you posted. >> thank you very much, sue. let's go to tara palmieri by phone, a political europe reporter based in brussels. we heard from tara before. welcome back. tell us what you know of the latest developments in this raid that seems to have netted one of the masterminds of the paris attacks. >> the routine raid they had on tuesday was not really a planned raid. they thought they were walking into an empty home because thought the utility bills were paid but they were able to find

the fingerprints of abdeslam in that home and that led them to the mollmolenbeek apartment the raided today where they captured him and two others. they shot him in the leg. he was on his way to the hospital to be taken care of because obviously he's better alive than dead in terms of getting information. but it was a pretty routine procedure this week that ended up giving them a great lead and it turns out he was hiding in belgium for over six months. >> do you know whether there are any other suspects or persons of interest that are still at large in this particular operation that appears according to what sue herera told us to be ongoing? >> right. salah abdeslam with a big fish, two others caught today. there was an inner ring and the outer ring. the outer ring were helping them move around belgium and hide from the police for months.

>> tell us about molenbeek, the neighborhood, where is it, what is it like, what is the nature of the relationship between the residents of that neighborhood and the police? >> i mean, it has become a regular area to raid. it is basically where a lot of islamic extremists have ended up living. a lot of them are second generation north african and it seems to be a breeding ground for terror cells. belgium has a very large islamic arab population and it just happens to be a neighborhood that has many people there. but it is really not that dangerous of a neighborhood in my opinion. brussels is generally a safe place besides the fact there are people living here and plotting in belgium. luckily they haven't attacked here in a while. so i guess they don't have interest in going after their own home. >> i'm told a third suspect has been detained or arrested in

custody in connection with -- >> three were captured today including salah. >> including abdeslam. including abdeslam, i should say. what is the nature of the relationship of the people in that neighborhood with police? are they hostile to the police? are they friendly to the police? what? >> i would say that there hasn't been any sort of riots or fighting against police officers, but i mean it has become an everyday occurrence there is a raid that, you can hear -- i'm not even that close to the neighborhood, but you can hear alarms, you can hear sirens, this has become the norm in brussels. blue lights, blocked off streets. >> i'm sorry to interrupt you there. tara, thank you very much. tara palmieri, political europe reporter on the phone for us from brussels. let's switch gears

dramatically. trading nation, all about the rally in the bank stocks. the xlf up 8% in the month. but of the banks, are they still worth your hard earned cash? gina sanchez, and chris. the whole markets rallied, do you think the fed will help the banks going forward or is this a head fake and otherwise down financials market? >> well, it is interesting. the fed's dovish comments should not be good news for the banks because -- >> they want higher rates. >> they need higher net interest margin. they need to make money on the interest margin or fees. their operating margins have been increasing over the last year. and i think that sort of the anticipation of further hikes would be beneficial for that. the dovish comments shouldn't be good. you did hear news out of jpmorgan and b of a we have major buyback programs and that will actually prop up earnings in the earnings sector. that's not long-term and i always underscore that. this is not long-term earnings,

it will just prop up as a trading strategy for now. >> is that banks we should avoid now? you think the money has been made? >> i think a lot of the move went up with the news and i think with the fed basically going potentially on hold for a little while, i think that the bank -- the move in bank stocks happened and we're probably not going to see much more unless we hear of better net interest margins for them. >> chris, chart the xlf, does that confirm what gina says or more room to go higher? >> i would tend to agree here. i think the big story at the end of the day is ten-year yields are still sub 2%. we look at a lot of bank stocks, they are still below downward sloping 200 day moving averages that leave us reluctant to want to chase them in some cases up 10, 12, 15 off the lows. we're more inclined to back away from the rally. i think ultimately so long as the yield curve really hasn't

steepened to any meaningful extent. it is a tricky environment for the bank stocks to work and when we look at them on a relative basis, the rally actually has not been that impressive compared to other segments of the market. we would like to see a resounding response for bank stocks off the low. i would not call the move resounding at this point. >> with the market, chris and gina. for more trading nation, head to our website, tradingnation.cnbc.com. the battle over immigration, it has become a hot topic this election cycle. new data on just how big an impact immigrants have on entrepreneurs is sure to surprise you. shark tank's kevin o'leary with us for the rest of the hour. who is also an immigrant to this fine nation. >> we're all immigrants. that's what is great about this country. this is where you want to come when you want to create jobs.

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welcome back to "power lunch." immigration a hot topic in the presidential election. check out the new stats. according to the nonpartisan national foundation for american policy, immigrants are starting the country's highest valued startups, launching more than half of the 87 startups valued at more than $1 billion. immigrants also key members in management, product development teams at over 70% of these billion dollar companies. and let's just add, google, ebay, tesla, all founded by immigrants. let's bring in kevin o'leary, an entrepreneur and immigrant from canada. >> yes, half lebanese, half irish. and when i want -- >> the o'leary part is the irish

part. >> when i wanted to start my company, i went to boston, massachusetts, because that's where i could get the engineers, the capital, and the market. america is the place you come when you want to create a new growing company, because it has all the things you need. >> still? >> absolutely. the one change i must say now that i'm a huge advocate for and made myself vocal about this, regulatory levels at municipal and state and federal levels for small business are brutal. this last administration focused on changing the health care laws, did not focus on business and tax and the next administration, whoever it is, whether it is hillary or trump, they have to solve for this now. the creation -- >> the politicians say you're just whining. rich business people whining and regulation saves lives and -- >> i'm talking about the reason we had anemic job growth out of this session is because small business was shackled. that's the truth. that's the truth. >> are you worried about the tone of immigration in this debate. could you -- the way some politicians are talking now, do

you wonder if you come to -- >> i wouldn't be here if there are walls, obviously. the way i look at this is all that rhetoric is going to go away when we get to -- >> you would have gotten around the world. >> but to be clear, they want to curb illegal immigration, everybody is pretty much said therefore illegal immigration, just controlled -- >> every country wants to have some control of the border. i'm okay with that. but this idea that we're going to be exclusive to any race or gender or anything like that is ridiculous. i don't think it is going to happen. i think you'll find, and speaking of trump's rhetoric, which has made minimum popular, he's not stupid. he moves more to the center when the -- >> who do you support? >> who would i support? here is how i'll answer that. rather than give my support to one candidate or another, i think trump will be better for stocks. that's what i care about. i love his tax plan. i love his deregulatory tone. 15% corporate tax rate would have tons of capital coming back

to america and he would repatriate all the money sitting out there that we can't get home right now. >> a lot of the focus on immigration, the people who look on the situation very closely say listen, we're not strategic about it, it is actually mostly family driven. you have a family member overseas. that's where it comes from. a lot of the tech companies say we should be smarter about hb 1 visas, making sure people who get ph.d.s, we're targeting immigration for the skill set that we need in the united states. >> and keep the people who are here, who have those skills. >> i recently taught a graduating cohort of engineers at mit. the class was about 30% women and about 40% foreigners. they want to stay in america. and they can't. how insane is that. we gave them the number one brand on earth in engineering, number one, not a better brand on earth and they can't stay. that has to be fixed right away. they want to stay. want to start companies here. >> we have a lot of problems in this country. i get it. a lot of things we need to work out. you know what ticks me off is that people don't realize, if

you don't travel around the world, as all of us have and seat poverty and slums and the struggle that so many people really have to go through, there is 65,000 visas opened up every year. you know when they fill the cap? five days after they open them up. that's how many people want to come here and we just tend to pile on ourselves. >> let's do what the swiss do. they say this sector needs highly talented trained people, let's open up visa for that sector. people go to switzerland. >> used to do that in farming. >> keep the tv hosts out. >> right? >> too many of us. protect us. >> easy for us to say here. >> thanks, kevin. five big analyst calls today that you need to know about. street talk is on deck next right here on "power lunch." sales event is on. with extraordinary offers on the stylish, all-new rx... and the dynamic nx. ♪

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we do it every day, five big analyst calls we think you should know about, trying to find opportunity for you. let's get going here. stock number one is the french oil company total. nomura with a buy, upgrade to a buy from a neutral. two big reasons for the upgrade. one, less near term exposure to

the united states. they like the international profile. number two, increased capital flexibility beyond next year. the same call they start coverage of exxon with a reduced rating. they like the company that is concerned about the valuation saying the $70 tagt on exxon. >> the s&p at at 18, a lot are trading at the premium. you have to ask yourself, is the premium with it. barracuda networks, a huge cyber security loser in 2015. 2016 also a tough year because of disappointing earnings and posted in january it is rumored to be a takeout target with reports in february it is exploring a sale. shares off 65% from its high in april last year. >> the only thing to say about that barracuda chart is ooh. don't lose heart, cowen and company, right name in the right

environment, magic man. expects improving gross and operating margins as opportunities outweigh the downside risks. well ahead of any pricing erosion. their target is 30% upside. >> this is only about a buck and change away from 52-week highs. >> quiet little run, isn't it? >> get john chambers on the phone. >> talking about the financials a lot and jp morgan. credit suisse is positive today on top of the existing buyback. this means credit suisse has a reduction in share of 2% versus 1 3rs re -- 1% reduction. maintaining the outperform rating and shares already discounting a mild recession. the last stock is a smaller cap name. a name we talked about yesterday

did get a call today. sea world, not obviously under the radar name but we talked about ending its killer whale program in the future. today wells fargo upgraded sea world to outperform. that deal to phase out killer whale shows is apositive and should help the image and bring people more back to the park. in a study, 83% believe it was a fundamentally good company and the reputational markets should decline after this year. analysts raising the price target range into a range at wells fargo, 22 to 24 a share. 19 to 21 a share, minimum of 17% upside. >> breaking news, michelle. >> we have video coming in from belgium. appears to be the arrests of one of the suspects taken into custody. abdeslam, one of the terrorists was arrested. we don't no if that is

individual being dragged into the car right now. but this video just feeding in from belgium. you can see him being put into the car. >> dramatic video, yeah, we had heard earlier -- >> gunshots. >> abdeslam had been wounded in the leg. i note that that individual was hopping, seemingly favoring a leg because his legs were restrained in some manner but again we don't know whether that was the so-called mastermind, the car driver of the attack at the bataclan on november 13th in paris. >> when we have more information we'll bring it to you. we'll be right back. don't move. people talk about "deals"

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like in rochester, with world-class botox. and in buffalo, where medicine meets the future. let us help grow your company's tomorrow - today - at business.ny.gov dramatic developments in a neighborhood of brussels, this is one of three suspects detained in the city. the suspects involved in the paris terror attacks. we don't know whether that's the mast masterabdeslam wounded in the leg. we can see him hopping on one leg as if one leg is wounded but at any rate that is one of three paris attacks suspects arrested today in belgium. an operation that is still ongoing. this must have been earlier because by now it would be dark. >> it is -- i'm wondering you

hear three or four gunshots right at the beginning of the video. it doesn't like like the gunshots are coming from anybody we can see on the screen. if you're on the radio, eight belgian police wearing face masks with machine guns. >> there you hear it. >> you wonder if that's when they shot him in the leg. >> hard to know. >> we'll find out. >> kevin o'leary is with us. as we explore this investigation in europe, the presence of islamic terrorists and economic worries, you are diving in. >> i'll tell you why. one of the big stimulus, this recent announcement of negative interest rates on euro. you have guaranteed to lose 4% if you leave cash in the bank. some portion of that will move into large cap dividend paying stocks. dividends in europe are almost 40% higher than they are here. and the pes are materially

lower, sometimes 15% less for any sector. i've gone long europe and dove in earlier this week and raised it to 25% waiting and used two etfs to do it. oeur and oeuh. you want to hedge that out. that gives me a half balanced, half hedge. to me it's the way to buy europe, 140 names in those etfs. >> you have to remember about europe, when you invest in europe, she worked for 17 years for a large french retail company. you're buying a back door maybe cheaper valuation way into america. most of the biggest companies in europe, the biggest market is not europe, it's here, you're getting a discount because you look at the nestle or loreal or voekz swlkswage volkswagen. >> tell me how motivated you would be if your bank told you they were going to take 4% of

your assets away from you if you stay in cash. what are you going to be? >> hoard cash in gold in your basement of your headquarters. >> some of that moves into equities because they are attractively priced and have a competitive advantage on currency, you can ship a car over here and be very competitive. >> why do you think the yield is higher. >> all of the concerns you raised and terror issues and this is a good story developing right now, all of the concerns that the economies are going back and lapsing into recession, remember, those large cap companies have almost half of their sales here in the united states. if you tap 2% gdp growth, you can pay 15% less and here's the kicker for a dividend hound like me. get paid 50% hire yields on the indexes. we're only getting 2.2%, you can get 3.8 in european indexes and all you have to do is hedge out

the currency risk. you can own it in usd. >> i think you're a dividend -- >> daddy dividend if you want. >> i'm not calling you that but appreciate you coming on the program. >> thanks for watching "power lunch." closing bell starts right now. >> welcome to "the closing bell." i'm kelly evans on this friday. >> i'm bill griffeth. we begin with breaking news ste steve liesman has details. >> he talks about whether he wonders zero interest rate policy, putting interest rates at zero could lead to a period of low rates and low inflation for a long period of time. then he brings -- wonders about this new idea and said we need