tonight much more police presence on public transport, on the roads as well. and that whole part of london has been shut down. everything has been brought to a standstill as emergency services do their work. >> appreciate you coming to the phone. wish you and the folks there well today. thank you. >> thank you. >> seb payne, with the british times. "power lunch" will pick up the breaking story. brian sullivan, tyler mathisen, melissa lee and michelle caruso-cabrera. >> that break story out of london, in which police are calling a terrorist incident. a man reportedly drove his car at a busy sidewalk before allegedly jumping over a gate at westminster. many injuries have been reported. wilfred frost has the latest.

>> ten people were reported as injured at least one person reported dead. moments ago somebody has been pulled from the river thames as well. a car mowing down pedestrians on westminster bridge and the stabbing of a police officer just inside the parliamentary estate with the assailant being shot appear to be linked. we do not have that completely confirmed yet. commander harrington alluding to a possible incident involving someone in the river. commander harrington of the met police had to say they remain open minded about the motive but that a full counterterrorism investigation is under way. he said numerous casualties, including police officers. he also said that more additional police officers, armed and unarmed, will be deployed across london to help people remain safe as they go

home and encourage people to remain vigilant. will not be drawn on the question of whether this incident is over. of course, also just mentioned prime minister teresa may has been confirmed of being safe in 10 downing street, very close to parliament. her official residence. it's been confirmed by downing street that she will chair an emergency cobra meeting, uk emergency response meeting, later this afternoon. presumably in the next couple of hours. finally, just also confirm in the vicinity buckingham palace at the moment. >> meantime over to london, where cnbc's willem marx is on the scene. >> reporter: a little over two hours ago, we had a vehicle crossing over westminster bridge here, 400 meters from the palace

of westminster. that vehicle at speed crossing the bridge, knocking down people on the bridge. according to eyewitnesses, one of them caught under the wheels of that vehicle. and on the far side of the bridge, it seems to have veered to the left. that's the area immediately around the palace of westminster. at that point, the assailant exited the vehicle, got round the front of parliament. guarded normally by three to four policemen. seems to have gotten inside the perimeter and the stabbing of this policeman took place. at this juncture, you can see a large number of emergency vehicles. seven ambulances past us, four of them with our sirens on. over this shoulder here, st. thomas' hospital. two injured on stretchers being taken in there by emergency workers. 10 downing street is where

theresa may is. we're getting reports that she has begun a meeting of cobra. that's the british security council essentially meeting together. we've got the iconic red london buses in front of big ben. >> willem, thank you. willem marx in london. president trump has been briefed on the situation in london. let's get right to eamon javers. >> reporter: we're expecting more on the u.s. side of this. in half an hour time sean spicer, white house press secretary is expected to brief reporters. number one topic at that briefing. no indication of whether we'll hear from donald trump himself later on today. we do know that the president was briefed at the white house

on this incident. as he told reporters on a different topic this morning. >> we're just getting an update on london, as that just happened. >> not much detail from the president of the united states. caused that meeting to be delayed by nearly half an hour. we expect more this afternoon. questions on the u.s. side is whether there's any security implication for the united states, whether this is now over or, in fact, it might be tied to a larger group, larger entity that might be planning something else, guys. we'll wait and see what the white house has to say in half an hour. >> eamon javers, joining us. colonel jack jacobs, msnbc military analyst. welcome as always. good to have you with us. >> good afternoon.

>> at times like this, we begin to think about how vulnerable we, in the united states, may be, to these kinds of attacks, automobiles running in and trucks in niece, berlin and now london, taking out pedestrians. how can you ever prevent that kind of thing? >> well, you can't. there's no way you can protect against it completely. >> these are the kinds of things that have been encouraged by isis specifically for sympathizers to do exactly this sort of stuff that i know that the authorities want to keep an open mind. terrorist incident. always can be somebody who is worried about brexit or something else. but isis has encouraged it's sympathizers everywhere around the world to do exactly this sort of thing. and you can't -- a vehicle is a deadly weapon, especially in an

environment like a crowded city. and there's no way that you can protect against it completely. if you talk to law enforcement people, military people, intelligence people, they'll tell you that the best way to prevent this sort of stuff is good intelligence, being able to identify potential sympathizers and being able to take them off the street before they have an opportunity to do this, to break up cells. >> so, obviously isis, its sympathizers in europe, whether they are in england or they are in paris or brussels or berlin or wherever are one problem. the heart of isis remainsremain. from what you know, from what

you hear talking to your sources, are we making progress in degrading isis in the middle east, in that part of the world? for that matter, are we making any progress against them in the metropolitan area and elsewhere? >> the answer is yes. we're making great progress. extremely difficult for command and control on the battlefield. as we take a look at what happened, at how we battled al qaeda, the result is that the organization al qaeda did and isis is doing now fragmented and while it makes an extremely difficult to direct coordinated operations. it does little to prevent isolated incidents by sympathize

ers and makes it extremely difficult to try to eliminate them. what we're doing and is not going to do that. that's why intelligence is so important. >> colonel, it is brian sullivan. it is the one-year anniversary of the suicide attack at the brussels airport. do you believe that that in any way likely related? >> i don't believe in coincidences. the answer is yes. i think it's directly related. matter of fact, terrorists have a tendency to focus their attention on symbolic dates, times and locations. i think the two are very closely related. >> to follow up on tyler's point, there have been more than ten vehicle-based terror incidents since 2014 alone. tyler referenced france, germany, ohio state university and a number of others. we're so focused on air travel. just did a story the other day about lap tops and ipads. at what point do we become

stretched to where we can't defend the way we should? we're going air travel. now these ground attacks. we'll ramp up our defenses there. at what point do we simply lack the resources to not guarantee but help guarantee safety? >> you know, every time there's a threat, we've thrown money at it. sometimes it's good. sometimes it's bad. at the end of the day, you can always print more money. you focus your attention, resources both money, time and people and throw them the problem, eventually you'll forestall some of the worst excesses that are possible. and that's what we've been doing. at the end of the day, i know we can be complacent about it. but we're in much better shape in the united states than they are in europe. among other things, immigrants are much better integrated at the social and political and economic fabric of this country than they are at any other

country, including any of the countries in europe. like i said, i don't think we need to be complacent about it. we have to keep throwing resources at problems and solving them. but we're in very good position with respect to that. as long as we keep making it easy for people to do well, then we'll have far fewer problems than they have in places like france, belgium and holland. >> colonel, granted, the details are sketchy at this moment. they are treating it, as you mentioned, about a terror attack. are there any clear signatures in your view to indicate it is, in fact, terrorism? what do you think dparsons are like between cities of paris, berlin across the continent of europe? >> it has the hallmark of isis or isis-inspired attack because of the way it's conducted. that's exactly what isis has been encouraging around the world. it's interesting that you mentioned conversations.

including intelligence people in all these countries. they and we talk all the time. we have joint exercises. we exchange information. lifeblood of intelligence collection. we exchange it all the time. we do and they do inside europe and other countries. as long as there's a free flow of intelligence information, it's going to be easier to prevent these sorts of things from happening. but you'll never be able to protect against lone sympathizers from doing something like this. >> how does or do the people who are running isis, using that

term loosely -- how do they communicate with sympathizers or cells in other countries? >> the principle one, quite frankly, is something that's extremely difficult, if not impossible to control. and that's social media. we have a free flow of all sorts of stuff on computers and people on social media almost continuously with the exception of doing their work in many cases. but there's no way that you can prevent communications from taking place. one of the things that we have been doing, in addition to degrading the hierarchy of these terrorist organizations on the battlefield and elsewhere is to cut off the lifeblood supply, which is money. it's extremely difficult to get things done without it. the more we make it difficult for them to either collector use money, the more difficult it's going to be for operations of any kind to take place.

but, by and large, communications are extremely easy. social media make it very easy for anybody to talk to anybody. >> colonel jacobs, thanks very much. >> very welcome. you bet. >> we'll take a quick break as we continue to monitor this unfolding situation in london. meantime, take a look on the right side of your screen. sean spicer, no doubt, will address the situation in his press briefing when he begins. we'll keep a close eye on that as well and bring that to you as soon as it starts. i'm in vests and as a vested investor in vests, i invest with e*trade, where investors can investigate and invest in vests...

or not in vests. 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.

the white house came out and told reporters he does not believe that the gop has the votes needed to pass repeal of obamacare. the dow is now down 50 points

right now. >> ahca. not obamacare. sorry. >> to repeal obamacare. >> oh, sorry. >> we corrected the correction. >> sorry about that. >> bob pisani is at the new york stock exchange with more. >> there's a lot of cross currents in the market. obviously, the london incident. three other important ones. incident rates, oil and obamacare. we started to the downside. late in the morning we started rallying a little bit. several factors around this. the stock market is getting smacked around by the bond market. interest rates in particular. let's look at the ten-year yield. ten-year below 2.40 is a little bit of a line in the sand. stock tradeers don't normally talk about the yield. and around 2.37, the market changed, started rallying. yield started rallying. that's when the stock market started to turn around. turn around interest rates was a big help for the markets overall. banks have been on a roller coaster all day. some of them were moving in 4% to 5% ranges.

citigroup started way, way down in the 56 range, went way up over $58. sliding back here late in the day. all over the place. we don't really know whether we're bottoming on interest rates or not right now. other major issue, look at the sectors right now. oil, still no effort for oil to rally toward $50. energy is again a downside leader. another fundamental story we've been dealing with for a while. you see the other names. real estate. tech is holding up like a champ. that's one of the reasons tech is not dropping. teches holding up very well. the other major issue, of course, is the state of obamacare. you heard brian talk about what congressman meadows was saying here. that's a big effect on the markets. we're in this netherworld right now. we've seen heavy selling but not panicky selling and most sectors, believe it or not, particularly tech health care in an uptrend. we have sectors that have corrected already. s&p is only down 2% from its

highs. energy stocks are in double-digit declines. meadows and migning as well. retail, another sector, correcting, of course, for a fundamental reason. but also concerns about that border swruchlt tax as well. back to you. >> thank you very much, bob pisani. let's bring in global strategy at jp morgan, ben mandel. what do you make of what's going on? seems we are moving on headlines. interestingly we turned positive on the markets here, but we are moving around here. >> what happened yesterday, the issue of our health care is basically a question of are we removing a source of upside risk to the outlook? today and the events in london assert a lot of downside risks, some very scary. i like to focus on our baseline expectation, the resilience of equity markets is a function of fundamental. resilience of the u.s. economy. the u.s. economy is the amazing

2% economy. it was 2% in 2010, coming out of recession. disappointing 2%. in the depths of the euro crisis it was 2% in 2013 when the u.s. government shut down. this is an economy that's been extremely resilient to an ashocks. it supports a limitation on the downside risk. it's a continuation of this long -- >> is there a cap on the upside? we're up 5% or so. >> that's a very fair question. one we deal with. it's pretty much right now, relative to the end of the last cycle. you know, where it was in 2007. i think the point here is that what we've seen is that you have had an evolution in the balance of risks around that baseline 2%, which has been supportive. >> you know, i want to go back to one of the charts that bob pisani put up, the distance from

the highs of various sectors as measured by etfs. they were significant. many were double digit. maybe put that back up on the screen. if not, no matter. regional banks and so on and so forth. the question is, is the market healthier than it appears over the past couple of days or is there a greater underlying weakness in the market that maybe we have been paying attention to? look at the difference from the recent highs. oil, metals & mining, regional, retail. >> i see one that's consistent to what's going on with bond yields. markets are debating what direction they can take on that. you can boil down sector rotation into one that's actually tracked for fairly closely. so, i think there's -- you know, that's not a linear trend or monotone. it can go back and forth.

our north star will expect bond yields to continue going up this year, driven by global growth, inflation in general. policy seems to be on board. >> don't get swayed by the fact that they've been down the last week? >> exactly the point. this is a more persistent trend in yield. >> finish this sentence. if health care repeal fails, the stock market does what? >> i think there's a knee-jerk reaction, which is not good. but a temporary one, ultimately. >> so we sell if we fail on health care, either tomorrow or before easter, whenever it might happen? >> i think you buy the dip on that, right? let's say you have three factors that are supporting a positive view on risk, in general. think about equities and high yield, et cetera. one is globalization. two is the business cycle, which we think about as being a sign of, you know, what is the risk of that adverse event, which is

the recession, for risk assets. that's pretty low. then policy which layers on to things. we're talking about removing some of the upside from the policy aspect of it when the other two are still continuing to fire. >> thank you, ben. >> thank you. we're waiting for white house press secretary sean spicer to begin his daily briefing. he is expected to address what uk police are calling a terrorist situation in london. at fidelity, trades are now just $4.95. we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage.

fidelity, where smarter investors will always be.

( ♪ ) i moved upstate because i was interested in building a career. i came to ibm to manage global clients and big data. but i found so much more. ( ♪ ) it's really a melting pot of activities and people. (applause, cheering) new york state is filled with bright minds like victoria's. to find the companies and talent of tomorrow, search for our page, jobsinnewyorkstate on linkedin. we've got fractional moves in the markets.

volatility is on the rise. the volatility index continues up today by 1.7%. the first time it's crossed 13 earlier in the session since january. "power lunch" will be right back. but mobility itself. an autonomous-thinking vehicle protecting those inside and out. and it's the mercedes-benz of today that will help us get there. the 2017 e-class, with innovations no car has offered before. and that will change driving forever after. lease the e300 for $549 a month at your local mercedes-benz dealer. mercedes-benz. the best or nothing. it's been over 100 years since the first stock index was created, as a benchmark for average. yet a lot of people still build portfolios with strategies that just track the benchmarks. but investing isn't about achieving average. it's about achieving goals.

and invesco believes doing that today requires the art and expertise of high-conviction investing. translation? why invest in average? what witi'm stressed,e horse? trying to figure out this complex trade so i brought in my comfort pony. well you could get support from thinkorswim's in-app chat so you don't need a comfort pony. so what about my motivational meerkat? in-app chat on thinkorswim. only at td ameritrade.

we continue to monitor the situation in london. right now let's go to washington, d.c. rand paul speaking about the health care repeal vote. >> by the largest of the group have the leverage to bring the crisis down. this would be something positive we could offer people instead of everybody saying oh, government insurance. we need to empower the consumer to have less expensive insurance and be part of a group. most of the people that worry about their health insurance are in the individual market. if they were to join a group insurance product that would help to cover or protect them when getting sick. [ inaudible ] >> what will it say to you if the president can't get it done this week? >> this is really at the feet of paul ryan. and paul ryan will have to come to conservatives now and ask us what we want. if he gets the votes, he doesn't

have to. but i think he's going to have to give conservatives a seat at the table. i think the freedom caucus, hopefully, will earned their seat at the table by tomorrow. >> senator rand paul, reiterating what he has said, that the gop, in his opinion, simply does not have the votes to pass the repeal of president obama's health care act. that vote is scheduled for tomorrow. if they caucus and there's not enough votes it may not happen as well. rand paul reiterating they are not even close and may have to work with him and others to get those votes. let's get back to cnbc's wilfred frost with more on the breaking news in london. >> at least one person is dead. ten injured, in what is being described as a terrorist incident. a car mowed down pedestrians on the bridge. stabbed a police officer and then was shot by armed officers. it appears the incidents were linked, possibly even the same

person. but that has not been confirmed. here is eyewitness andy woodcock, editor of the press association in london, whose office is inside parliament, describing what he saw. >> looked out the window and saw 40 or 50 people running from westminster bridge, the direction of westminster bridge around the corner into parliament square and toward carriage gates. certainly emerged from this crowd, came in through the gates and, from what i could see, did have a kitchen knife, fairly long one. maybe nine inches, something along those lines. he was holding it above his head. he ran in towards the parliamentary building. >> i want to draw your attention now to a photo which clearly shows a uk officer aiming a gun at an individual receiving treatment. the police officer's root foot appears to be standing on what paefrs to be a knife. we've not received any

information related to this photo. multiple casualties have been confirmed. the police are remaining open-minded about the incidents caused but that a full counterterrorism investigation is under way. he said deployments are being sent across london to help people get home this evening. but would not say if the incident was over. meanwhile prime minister theresa may was in parliament at the time of the attack. she was whisked away and is confirmed of being safe at 10 downing street, official residence at the moment, which, of course, is very close itself to parliament. she will be chairing an emergency meeting of the uk security cobra group at some point in the next few hours. >> all right. wilfred, thank you very much. let's bring in bennett waters, from the chertoff group and home of former homeland security

secretary michael chertoff. does this have all the signs of an isis or isis-inspired attack? >> i would hate to speculate at this point. there are certainly parallels to things that we know isis has used and encouraged its sympathizers to use, things like knives and cars are things we've seen them use before. it certainly does fit their m.o. but certainly too early to say definitively it is isis. >> talk to us about great britain as a source of isis fighters. i believe in europe, great britain and france have sent the most individuals to go with the isis cause in the middle east. >> well, it's a two-way phenomenon. we certainly have countries from which individuals have departed and sought to join isis and isis-inspired groups. we also know that, as we increased our focus on isis in

the areas of operation that they have fragmented. and those individuals are returning home often radicalized and helping form other groups of sympathizers in those countries. i wouldn't say it's simply a matter of individuals leaving the country and joining isis-inspired groups. in fact, in many cases individuals are returning from battlegrounds to their prior areas of residence. >> this is hard to answer but how much do we know, and how do we know it, about isis activity here in the united states? cells or individuals who may be, quote, sympathizers? >> i think, as you pointed out that's a very difficult question to answer. what it underscores is the importance of the role that the intelligence community plays, not just domestically, but, in fact, internationally. we rely very, very much on advanced warnings and information. we see this manifest in things

like watch lists and so forth in which it is clearly better to know about these individuals before they come to the homeland and to the degree that they are here, able to identify them through intercepted messages and so forth that are happening abroad. really underscores the importance of the intelligence community to help us know about the types of individuals and the attacks they may be planning well before they're operational. >> our local nbc station in new york, nypt is sending counterterror teams to numerous locations across the city, including british locations. that seems like the obvious. in city like new york or paris, city like berlin, should we be on high alert at this point in the aftermath of this attack in london? >> i would say that is a very fair statement. we know that today is the one-year anniversary of attacks in brussels. we have had indications that

interests in european governments, u.s. government, western interests remain very attractive targets. iconic locations of governments, of areas of mass gathering. these are all opportunistic targets that have been targeted in the past. it clearly makes sense to deploy assets to look at screening people, their belongings and things at this point. >> earlier this week, there was the ban of larger electronic devices on aircraft flying from several specified airports, on specified airlines in the united states, also into the uk. now this, which is being described as a terrorist act. do you sense that we are about to embark on a period, potentially, of higher terror incidents? >> well, i don't know that we've ever been in a period of lower risk, to be quite candid.

i know we face a very determined adversary. i think they know we focus on things like aviation for many years. their willingness to conduct lone wolf attacks in locations like nice, brussels, paris. and we know that soft targets are attractive to them. so we do well to remain on high alert and vigilant for these types of attacks at all times. >> what is the cost associated with all of this, bennet? is there a point we look at the spending and decide we have to be a little more targeted in where we spend that money? >> well, i think it's important to note that counterterrorism is about risk management and not risk elimination. and security is a constant balance between individual efforts to prevent an attack and intrusions on individual freedoms.

and the more we attempt to stop the lone wolf, the more intrusive those actions have to become. so there is a balance. and i'm not sure that i can put a price tag on that. but we certainly recognize that eliminating the risk is neither fiscally prudent nor practical. and so what we are forced to do is make applied risk management decisions in ways that buy down risks without unreasonably intruding on people's liberties. >> you're getting comments from secretary of state rex tillerson about the london attacks. he said we condemn these horrific acts of violence. tillerson weighing in on the attacks as well. we are waiting for white house press secretary sean spicer, in which he will likely make comments and answer questions about this attack. bennet, from the london security officers working this case, what is the one piece of information that we really need to know right now? is the name important? is the address important?

what are we looking for? >> either. the most important thing that is happening on the ground at this point is attempting to deconflict information, initial reports where perhaps there were two attackers where these are linked. now seems there was one attacker and clearly they are linked. attempting to learn as much as we can about that individual. was the individual on a watch list? do we have any information about known associates or contacts of that individual? patterns? things that could help us with other attacks that may be in the waiting are all things that will be important at this point. >> bennet thank you so much for joining us, bennet waters of the chertoff group. global chief strategist joins us now from london. you were just walking through the streets. was it difficult to get to where you had to go?

rich? >> so i've not been walking through the streets. first thing to say is, clearly, a tragic event. i think it's really humanitarian event, though. and, unfortunately, that we've become increasingly resilient. >> sorry, have to interrupt. sorry to interrupt. sean spicer is speaking at the white house. let's listen in. first at the top, i wanted to note that the president has been briefed on the situation in london. he just spoke to prime minister may and we'll have a readout on that situation and that call soon. we obviously condemn today's attack in westminster, which the united kingdom is treating as an act of terrorism. we applaud the quick response that both the british police and first responders made to the situation. the victims in this are in our thoughts and prayers. the city of london and her majesty's government have the

full support of the u.s. government in responding to the attack and bringing those to justice who are responsible. we will provide you with further updates as warranted and, as i mentioned, readout of the president's call with the prime minister. turning to the events of today, this morning, the president received his daily intelligence briefing, stopped by in the women and health care panel hosted by the medicare and medicaid and that event was attended by vice president and health and human service secretary tom dr. tom price. challenges of implementing obamacare firsthand. a valuable asset to the president and his team as way continue to consider and enact policies like the american health care act that will make health care more accessible and affordable for everyone. the women at the roundtable today represent the physicians, nurses, pharmacists and administrators who make sure that people around the country receive the necessary prevent active and life-saving care that they need every day.

the doctors who attend to the patients and the family practices, emergency rooms and clinics and those who support them on the administrative and technical sides are one of our country's most treasured resources. with the passage of the american health care act and the rest of the president's health care reform agenda everyone, regardless of their financial situation, will be able to take full advantage of this resource. that's why, at last count, over 40 major associations have expressed their support for american health care act, with several of them, including the u.s. chamber, national federation of independent businesses and, just today, the national taxpayers' union calling it a key vote. the president and his legislative affairs team hosted several members of the house of representatives for another meeting on the health care act. the president acknowledged, as he has before, that the ahca is one step in fixing the broken health care system created by obamacare but it's an essential first step. undoing and fixing all the

misguided policy also require holistic, multi-step process. and that's why the president and his team are fully committed to maintaining an open line of communication with capitol hill leadership throughout this entire process. throughout the weeks since the acah was first introduced they've been meeting with republican members from across the political spectrum, many of whom we've seen move from no to yes as they learn more about the legislation and amendments that have been adopted, continued coordination between the administrative and legislative actions will ensure that our new health care system is effective and efficient. black caucus committee, the president will hear from all interests as he continues to note he is the president of all americans. diversity makes our nation strong and it also means we don't necessarily agree on every policy item but that we continue to have a dialogue toward productive policies that help america move forward. the president looks forward to

discussing the cbc's policy priorities and finding a way to work together with those priorities. the president will have dinner with secretary of state tillerson. secretary tillerson hosted the foreign ministers and senior leaders of the global coalition working to defeat isis for the first meeting of the full coalition of 68 members since december of 2014. this meeting follows up on the defense ministerial followed last month in brussels. fight against isis and this meeting seeks to support efforts to defeat isis while max miimiz efforts on its branches and affiliates. the trump administration will use all the tools of national power in coordination with our international powers to cut off isis' funding, expand intelligence sharing and deny isis geographic and online safe

havens. also today on the hill, judge gorsuch on his second day of questioning by the senate joushjoush judiciary committee, during his 12 hours of questioning -- at least i know how someone else feels -- it's not surprising that senate democrats are failing to gain traction for any of their pot shots and opposition to judge gorsuch. there's simply not enough politicizing that democrats can do to hide the fact that judge forsuch is an immensely qualified and thoughtful jurist with respect to our constitution. we announced the president will visit brussels for the meeting with nato. he looks forward to reaffirming our commitment to nato and allied responsibility sharing

and nato's role in the fight against terrorism. the president will host general stohlberg april 12th at the white house. major disaster exists in the state of wyoming and ordered federal assistance to supplement state, tribal and local recovery efforts in the areas affected by a severe winter storm and straight-line winds that occurred in february. we also announced the president will deliver this year's commencement address at liberty university on may 13th. the president is proud to call liberty's president, larry falwell, his wife, becky, and their entire family and friends and looks forward to celebrating the success of this amazing graduating class on such a momentous occasion. a few minutes ago, the chairman of the house intelligence committee, devon nunez, gave remarks on the surveillance collected. let me quet him directly. quote, i recently confirmed that on numerous occasions, the intelligence community incidentally collected information about u.s. citizens

involved in the trump transition. details about u.s. persons associated with the incoming administration, details with little or no apparent foreign intelligence value were widely disseminated in the intelligence community reporting. and, third, i have confirmed that additional names of trump transition team members were unmasked and, fourth and finally, i want to be clear, none of this surveillance was related to russia or the investigation of russian activities or the trump team. my understanding is that chairman nunez is coming to the white house later to brief the president on this development and we will have a readout for that meeting once it occurs. with that, i will be glad to take your questions. mara? >> two questions. one on nunez and then health care. is your understanding that this -- none of these unmasked names were leaked? >> i don't know. i literally read the statement. heard the statement, came out, and briefed it. it was wrapping up as we were beginning this. >> okay. today in the pool spray the

president said keep your doctor, keep your plan didn't work out that way. you don't get your drchlt you don't get your plan. this is one of the reasons we have to repeal obamacare. is the president assuring people who currently like their plan or like their doctor that under the american health care act they can keep their doctor and their plan? >> that's the hope. what i mean by that is not to be cute. last time they were promised something that didn't turn out. i can't promise something that a doctor stays in a plan or a plan stays there. that's a bit different. we understand we're letting market forces come into play here. competition. doctors can change what insurances they take. plans can come in and out of markets. what i think we can be assured of is a couple of things. one is that currently under obamacare, premiums are set to continue to skyrocket. we've seen an average of 25%. we've noted before in arizona, they've gone up 116%. i think there's no question that the additional competition and amendments that have been brought into this discussion will help lower the trajectory

of that. number one. number two, i think they're going to see greater choice. i think those are the things that we're willing to talk about being part of this plan. because you can't -- where they erred last time, they were not made promises they couldn't k p keep. one of the problems that they did is that they tried to suppress market forces and competition and instead of lowering costs and increasing choice, which is what they sought to do, it did the opposite. so, that's where this is headed. and i think that's important. john? >> thanks a lot, sean. on to ahca, mark meadows, who appears to be a firm no in terms of his opposition to the replacement bill said that 25 members of the freedom caucus are opposed to this replacement bill. do you dispute those numbers? >> i'm not going to share. i know we saw steve king, i believe, who had been a no.

he's a yes. member by member, we're seeing tremendous support flow in our direction. the count keeps getting stronger for us. so i'm not going to start to get into yes or nos. i will just say that, you know, former congressman mulvaney, now director of om bchb mulvaney ha been a very strong advocate, up on the hill, talking to his former colleagues, assuring them of the effort and why the process has to go the way it does. but i'm optimistic in the sense of what we're seeing in the trajectory this is going and the number of votes flowing our way, not the other way. >> confirmation hearing for judge neil gorsuch i've not seen any democrat come out in support of judge gorsuch just yet. do you anticipate to get democratic support on this particular nomination? >> i hope and believe so. i think that there have been several that have spoken very positive lately.

i think he has been extremely impressive throughout this confirmation process. and you've heard members both in the senate. it's tough for anybody to say that he's not immensely qualified for this position. alexis? >> sean, related to congressman nunez, can you explain why the white house has agreed to meet with him at all about what his findings are? the reason i ask is that is that the minute that director comey said there's an official investigation, it might appear that the white house is interfering with the investigation and congressman nunez should present his information not to the white house but to the fbi. so why is anyone here at the white house agreeing to meet with him about his findings? >> we'll have a readout for you after that meeting. he did this press conference. he made the announcement that he was coming up to see the

president, to share these findings. i don't know who else he shared them with. i don't know, to your question, i don't know if he's briefed anyone else on it in terms of the intelligence community either admiral rogers, director comey. hopefully depending on the classification level we may be able to share more on that with you. >> can i just add, is the president concerned at all that there will be an appearance immediately today that he has interfered with an ongoing investigation, whether it's congressional investigation or the executive branch investigation by meeting privately with the congressman who says he has -- >> number one, we asked, as you know, two weeks ago, we said this was the appropriate venue. number two, you have asked us over and over again, why aren't we meeting with certain individuals. the chairman of one of the two committees we asked to look into this wants to share his findings. or what he knows. i think that is exactly how we talked about this working. but i will leave it to congressman nunez to come up and

to brief and share his thoughts. i don't know what his plan is. obviously, he sat -- he briefed the media before he briefed us. he went down and talked about what he had found. it's interesting. i didn't see any complaints when he held a press conference for the umpteenth time talking about his findings. there's no complaints in the media when he shares what he has found with you guys. when he wants to come up here and tell us this is where the investigation stands and this is what we've learned, there seems to be an interesting double standard on that. >> has the president said that he had additional information that he believed the white house or he or his representatives -- >> you're asking me questions that he has not briefed us. he has not briefed the president. you guys, as i noted, he went down and spoke to the media before he shared this with us. i would ask the colleagues of

collectively the media has more of an opportunity to hear what he has to say than us at this point. to the extent that we can, i'm sure we'll be glad to share with you what he said. the media has more information than we do at this point. john? >> didn't we already know that there was incidental collection of intelligence involving some members of the transition team? and i point to -- >> not the way you guys ask the questions. i mean, you have questioned us every day about what we knew. then you're coming back to say didn't we already know this? >> didn't we know flynn was monitored in his conversations? >> right. again, my point, john, is i don't know. until we and the president gets briefed i don't know what he knows and so to ask -- until that occurs and until we have the ability to share some of that in an unclassified nature,

i don't want to get ahead of it. i don't know what he knows. that's why, apparently, is he come iing up to share his findi with the president. at least that's what he said. again, let's wait and see how this unfolds. >> and on the american health care act, mark meadows says they don't have the votes and need to start over and do a new bill. that sounds like you're in pretty serious trouble. >> that sounds like one member's opinion. >> large contingent -- >> i named a few of the members part of that caucus that have come on board. look, every day you see who are and more of those members from that caucus and throughout the entire congress. the president was talking to them, members of -- the vice president has been actively engaged, mulvaney. these guys have been flooding the hill, on the phone and having meetings with them. i think the trajectory is going well for us.

>> remove the framework, tax credits and all that and you'll get massive buy-in from conservatives. can you do that? >> there are certain constraints we have in the process. for those steeped in the archean world of the senate, there's the bird rule. it has had an to do with the budgetary nature that have vehicle to 50 votes. right now there are things that a lot of people would like but will not get ruled in order of the parliamentarian. this is the only way that we will lee perepeal and replace obamacare. there is a three-step process to doing this. plain and simple. margaret? >> sean, i know you can't get

ahead of nunez. what he said was incidental surveillance using a fisa warrant. >> i don't believe he said fisa warrant. >> he did. >> did he? >> that's why i'm asking this question. does the trump administration have the presumption that foreign leaders or nationals will not be surveiled when they are in contact with -- >> again, as i said, i don't want to start talking i hope to have more information once the president is briefed. a lot of questions need to get asked. all the questions are in the presumptive negative toward us. why was this taking place. why were people surveiled extensively that were involved in the campaign.

no, no, the question is -- >> what was your presumption that foreign national -- >> it's not a presumption. i'm not the one -- respectfully, i'm not the one with the presumption. you guys r i actually started my comments off by saying that -- >> presume that foreign nationals are being monitored by u.s. intelligence when they are talking to -- >> and then i think there's a series of questions. which is how many times is an individual picked up, were they picked up? were they unmasked? if picked up by a fisa warrant, is american citizen -- good evening. my name is -- >> we're going to switch over from the white house to london, listen in to metropolitan police, give you an update on the attack earlier today. >> i'm going to try to cover three main areas. what we know about the incident, ongoing operation and what london can expect over the coming days. as you know, we've declared this as a terrorist incident. and the command is carrying out

a full-scale investigation into the events today. the attacks started when a car was driven over westminster bridge hitting and injuring a number of members of the public, also including three police officers on their way back from a commendation ceremony. the car then crashed near to parliament and at least one man, armed with a knife, continued the attack and tried to enter parliament. sadly, i can confirm that now four people have died. that includes the police officer who was protecting parliament and one man, we believe to be the attacker. he was shot by a police officer. the officer's family have been made aware. at least 20 people have been injured. as part of long established and well rehearsed plans, parliament has been locked down and plans for a terrorist attack. including uniformed and special officers. we now, of course, have an

ongoing operation and whilst we currently believe there was only one attacker, i'm sure the public will understand us taking every precaution in locking down and searching the area as thoroughly and exhaustively as possible. and i know that the officials working within parliament and public in the area completely understand the need to do this. i thank them for their patience and their support. this investigation has the full weight and expertise of the counterterrorism command behind it. and if there are people who saw the events unfold today that have not yet spoken to us, i would advise them to get in touch. a crime scene will remain in place in the affected areas in westminster. and pain painstaking investiga will be carried out to uncover all the possible evidence. looking forward to the rest of the day, people commuting home and days that follow, people of london will see extra police

officers armed and unarmed on our streets, including officers working longer hours, extra shifts alongside our colleagues of british transport and the city of london. we can call on the support of the military should we need to the a future point. we are also in the process of opening a bureau to help those people worried about friends and family who may have been caught up in the attack. furthermore, we're reaching out to communities and community leaders across london to reassure them. our strength as a city depends on our ability to stand together during these terrible times. if anyone sees anything suspicious or anything that causes concern, please do contact us. don't hesitate. my thoughts are with all those who have been affected by today's attack and, as a service, we lost one of our own as he acted to protect the public and his colleagues. this is a day we planned for but hoped would never happen. sadly, it's now a reality. we will continue to do all we can to protect the people of london.

i'll take a couple of questions. [ inaudible ] >> we'll look at that later on. as a matter of operation ongoing, i'm not going to discuss that for sensitive reasons that i'm sure you can understand. >> the officer attacked was he one of the officers protecting parliament? >> yes one of the armed officers protecting parliament. [ inaudible question ] >> as you understand the situation, when you've had such an awful incident take place on westminster bridge the reports will be confused with many differing and varying accounts and we're still working our way through that. we're satisfied at this stage that it looks like there was only one attacker, but it would be foolish to be overconfident so early on. as i said as a precautionary basis we're locking down the area and doing all the necessary

searches so we can have complete confidence everyone is safe. [ inaudible question ] >> so, what we said to the public is, please be vigilant. no reason to be alarmed. be vigilant on your way home. you will see more police officers, armed and unarmed, on the streets of london. >> as far as the police officer and the suspected assailant who died, the other two who died, did they die on westminster bridge? >> casualty numbers and details can be a bit confused. i believe they died on the bridge. one more question, gentleman behind. [ inaudible question ] >> clearly our investigation is now going forward. i'm not going to give you any details on that for obvious reasons. >> can you tell bus the officer? >> we have an awful situation. officer has been killed. it would be wrongful to give details now. thank you very much.

>> well, that was the metropolitan police chief mark rowley in london, giving us the latest on that attack in london and around parliament. for more details let's go to wilfred frost. wil? >> commissioner of the met police confirming that they are treating this as a terrorist incident and a full-scale investigation is ongoing. there have been four confirmed dead and at least 20 injured. of the four dead, it includes the police officer who was stabbed, his family have been informed. and also of the four confirmed dead the alleged assailant believed to be involved in the attack. he said that the attack started as a car drove across westminster bridge, which hit a number of people, including three officers. that one man continued his attack and broke into the palace of westminster's ground where, of course, he stabbed a police officer that we now know has been confirmed dead. he said he currently believes

there's only one attacker. they are satisfied with that. but they remain vigilant and continue to lock down the surrounding area and continue their investigation on a precautionary basis. they encourage people to be vingilant but need not be alarmed, he said. the ability of london to deal with this attack comes as their ability to stand together at a terrible time. he said the police service have planned for a day like this. they hoped it would never happen but sadly the reality hit today. as i said, four confirmed dead. at least 20 injured. encouraging the people of london to remain vigilant but that they need not be alarmed. guys? >> wilfred frost, thank you. willem marx is on the scene in london.

>> reporter: four confirmed dead, 20 or so injured. we're about 400 or 500 yards from the palace of westminster that crosses the river thames here. house of parliament behind me buts right up against the river thames. police boats are still in the water. police helicopters overhead. and active services still behind me. we've seen a number of people being carried by stretchers to st. thomas' hospital just here, where they've been treating some of the injured. and that vehicle seems to have accelerated from a roundabout just am front of me here up over the bridge from across the thames, hitting civilians as it went. some of those appear to be french sit stens according to french authorities. that vehicle then arrived northern end of the bridge close to westminster where there's a perimeter around the seat of government. seems to have rammed that railing. the attacker exiting the vehicle

and getting inside the parliamentary estate. that front gate to parliament here in london normally guarded by three or four policemen, where vehicles come in every single day. members of parliament with their passes, passing in and out of the house of parliament at westminster seems to be where the intruder managed to get inside the barriers and where one of the policemen may have been stabbed and died. >> the trump administration is reacting to that attack in london. eamon javers is live at the white house. >> president trump has been in contact with prime minister theresa may, according to sean spicer, white house press secretary, whose briefing is ongoing at the white house. he said the united states condemns this attack. here is what he said moments ago. >> we obviously condemn today's attack in westminster, which the united kingdom is treating as an act of terrorism. we applaud the quick response that the british police and first responders made to the

situation. the victims in this are on our thoughts and our prayers. >> we also have a tweet here from the vice president. the vice president, vice president pence saying thinking of families and victims in london and praying for everyone's safety. we'll monitor the briefing and bring you any other news we should get here, including whether or not we'll hear directly from president trump himself on this subject today. back to you. >> eamon, thank you very much. former assistant director with the fbi is joining us on the phone. thank you so much for joining us. based on what we know and what you just heard from london's metropolitan police, what assumptions, as a former law enforcement official, would you be able to make? >> well, it is early. but it's pretty clear that this follows an attack pattern that we've seen before, obviously. berlin, christmas, 2016, nice, bastille day 2016 as well.

and that's also something that was laid out in the isil online magazine in november 2016 where they describe conducting this type of attack and using a secondary weapon. this is right out of the terrorists' playbook. >> would you be able to label that likely an isis event? >> i would say highly likely, because they've been the most active in this area. most of the past attacks have been conducted by isil. i think it's a fair assumption at this point. >> what have we learned in the sort of aftermath of these events? what do we learn and how do we learn it? >> well, in addition to the obvious security issues that come up with a physical, low-tech, physical attack like this, we have to be looking now towards that lone weaponized individual. people like to say self radicalized. i say weaponized because these are instructions, very detailed instructions coming directly out

of isil. many of these individuals either have criminal history or recent pattern of mental health issues. so these are the types of people that are being targeted. in most cases, they're flashing red. >> chris, if you are attacking westminster, you're attacking parliament, effectively going after capitol hill, you know where this is going to end. if, indeed, the london police are correct in their assumption, this is a full-out terror incident, can we assume that the attacker has no incident of leaving the scene, that this was a suicide mission? >> there was no possibility he was going to leave the scene alive. and that, again, is what is described in the terrorist -- you get out -- ram people, get out, use your secondary weapon and prepare to die. >> chris, in the hours after an attack, what are the police and law enforcement officials and agencies doing on the ground

right now in order to make sure that there are no further attacks that will be launched within the city? >> well, they're going through the physical searches of the premises of the and, of course, through the vehicle that was used to look for any identifying material, any phones, any computers. any shred of evidence that might lead them to other people in his, what i would call malignant social network. they'll work his way back to residence, if he worked somewhere, and build that whole thing out. and keep peeling back layers. >> we touched on this in the previous hour. so much attention focused on air travel for obvious reasons in the wake of 9/11 and other incidents. the last four years we've seen at least ten major vehicular terror attacks ramming tractors, trucks in nice, france, ohio state university, berlin at the christmas market. how do we protect -- we know when we're getting on a plane,

tsa, we take off our shoes. it's a controlled environment. what can we possibly do from a law enforcement perspective about what seems to be a growing trend as a car or truck as your weapon of choice? >> unfortunately with -- particularly with respect to these obvious targets, iconic targets -- you can't get more iconic than what he hit today. you're balancing the desire to have the public have access to these facilities yet deny the terrorists an ability to get into these facilities and inflict casualties. this is probably the most difficult type of attack to prevent. we all know that. the marketplace, the shopping mall. the large gathering, the macy's parade. the best approach to this, and it's the obvious one, is good intelligence. and people -- we would encourage people who hear others talking about this type of thing. as i said, they're flashing red most of the time.

they're beginning to articulate their feelings and what they're about to do. that's when we need to hear from somebody. >> within the last week an individual got over the fences at the white house and apparently was undetected for something like 15 minutes. how can something like that happen? this individual apparently got to the gates of parliament but didn't get really deeply into the perimeter. coming right up to the doors of the white house is pretty serious stuff. >> yes. in the security industry one of the hardest things to do is get a guard on watch to actually pay attention 100% of the time. most of the time nothing is happening. the only way to get them on their toes all the time is to red team your own security, to test your own security constantly and keep them on their toes. it's a very difficult field. because 99.9% of the time, nothing is happening. >> chris, thank you very much. chris swecker, former fbi

assistant director. >> we are continuing to follow all the latest developments out of london. we're also watching the markets and your money, counting down to a key health care vote likely in congress tomorrow. there's a lot going on. you're watching cnbc. we'll be back after this. the command performance sales event is here. experience exceptional offers on our most refined models ever. get up to $2,500 customer cash on select 2017 models for these terms. experience amazing at your lexus dealer.

we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be.

back to the markets we go. the nasdaq is positive and s&p

500 roughly flat right now in the wake of that terror attack in london. how concerned should investors be about rising global risks? shannon sicoscia is with boston private. thanks for being with us. >> thank you. >> how concerned should investors be and how do they weigh this headline, geopolitical risk in their asset allocations? >> i think it's one of the hurdles for folks stepping back in the international market certainly over the last several months. we've had great momentum, accommodated ecb. but these terrorist acts, these geo political events, particularly in europe, have kept investors on the sidelines and i think that, to be honest with you, unfortunately the markets haven't reacted nearly as strongly as they would have, say, three or four years ago when these events were less common. so, although i think that

investors should weigh them, i think the reality is that when we look at valuations and relative opportunities, those sort of exist outside the u.s., albeit with increased risk. >> have you made recently with regard to your core models, with account holders, have you done anything? >> what we have been looking at is this relative opportunity in international stocks. to be honest with you, ahead of the brexit last year, we were pretty concerned. we went underweight. with the elections in the netherlands, we're looking forward to the french elections. the back half of the year provided that the elections in france kind of go the way that most people are hoping they go with, you know, le pen sort of not getting the power that she would need. we think that there could be a catalyst in the back half of the year for international

investing. we've been overweight in emerging markets. we think there's an opportunity here from a global growth perspective and our investors have benefited from that through the course of this year and the back half of last year. >> the sector, shannon, we've seen hit hardest within this selloff we've been seeing the past couple of days, financials. you recently decided to add to citigroup shares. why? >> if you look at citigroup sort of post election, it's been behind the peer group. we think management will be able to balance their sheet more efficiently. and from a relative approximate perspective to the s&p 500, citigroup is trading back from a valuation perspective. there's just an opportunity there we think makes sense in this current environment. >> if i can infer from what you said you're relatively positive

in putting fresh capital to work in emerging or developing markets overseas than you are in the united states. is that a knock on the u.s. markets or just that you see better value there? >> i think what we're really looking at is u.s. companies that should benefit from some of the stimulus measures here but also have exposure internationally and emerging markets that can benefit from potential global growth. i think it's two-fold. i think we want to make sure we're not limiting ourselves to looking purely at the trump stimulus package. given how much international markets have lagged over the last couple of years. >> the gop whips are counting the noses over there in the house. presumably there will be a vote over there tomorrow. what if it doesn't go the gop and president's way, what will

it do to marks? >> there will be a disappointment on markets. we need this funding to fund stimulus packages and tax reform. gop needs to save some money as it relates to the aca repeal. number two, i think that it perhaps puts in doubt the gop to pass those measures later in the year if they're unable to pass what has been their rallying cry for the past four years. >> do we sell off is this. >> it could be weak. it's trump's real first test as it relates to party politics in washington. he's right on the cusp right now. so he and paul ryan really need to do some work over the next 12 to 16 hours to get the votes. >> shannon saccocia, thank you

very much. >> high pleasure. latest from london and wall street after a short break. stay tuned. i joined the army in july of '98. our 18 year old was in an accident. when i call usaa it was that voice asking me, "is your daughter ok?" that's where i felt relief. we're the rivera family, and we will be with usaa for life. anything worth pursuing hard work and a plan. at baird, we approach your wealth management strategy the same way to create a financial plan built to last from generation to generation. we'll listen. we'll talk. we'll plan. baird.

i am benedict arnold, the infamous traitor. and i know a thing or two about trading. so i trade with e*trade, where true traders trade on a trademarked trade platform that has all the... get off the computer traitor! i won't. (cannon sound)

the dow being weighed down by nike. down 6% this hour. particularly worldwide future orders came in shy of analyst expectations. that in turn having an impact on the broader retail sector, trading lower by 1% right now. much more "power lunch" after this.

hi, everybody. i'm sue herera. nationwide search for 15-year-old elizabeth thomas. they now believe she was abducted by her former teacher, 50-year-old thad cummins. the days before she disappeared, cumins searched online to see if police could track his car and researched teen marriage. abandoned factory in massachusetts. six-alarm fire started at about 4:40 am local time. it's not clear what caused that blaze. south korea has begun the

long-awaited recovery of a ferry that sunk in 2014, killing 300 people. they believe they will be able to lift the sferry above surface tomorrow if weather conditions remain stable. european union officials holding a moment of silence at three different eu buildings to mark the one-year anniversary of the brussels attack. european union president along with european council president tusk among those in attendance. you are up-to-date. that's the news update. ty, back to you. >> thank you very much, sue. we are continuing to follow breaking news out of london on that anniversary. attack near british parliament, vehicle attacking pedestrians on westminster bridge. stabbed a police officer and was then shot by police on the grounds outside parliament. at least 20 individuals are

injured and four are confirmed dead. oil falling to one penny, 47 bucks a barrel earlier today. jackie deangelis at the cnbc commodity desk. >> 47.01 was the session low. we've paired some of those losse losses. >> almost 5 million barrels. this is the time of year we can see draw downs on builds. even though the dollar hasn't been correlated with oil for a while traders have told me this drop in the dollar index should support prices and it's not here. watching again on friday. right now it's a supply/demand story even with the opec cuts. still too much oil out there. >> jackie, thank you very much. starbucks holding its

meeting today and last one as ceo for howard schultz as chief of the coffee giant. our own jim cramer got to talk to mr. schultz and incoming ceo kevin johnson a short time ago. jim, what did they say? >> thank you so much for having me out. it's a tough news day, i know. this is a very big event, 25th annual meeting. >> one of the best and strongest years in terms of our comps and traffic will be much stronger than the first. rewarded in the past. we could not be in better hands. >> you know, mr. schultz stepped aside as ceo some years ago,

right? >> will be actively involved with the roastry, a very high-end kind of starbucks enterprise. it's worried it cut the comp store sales in the u.s. too much of a good thing. too many people come all at once. >> why would that be? when they rolled it out they were like it would boom comp store sales. now they're worried it's hurting. >> there's a mosh pit development. you come n other people come in ahead of you. >> ticks you off? >> it ticks off people. exactly right. that's what people have said is a reason why comp store sales have -- and howard and kevin --

remember, kevin was a technology guy. they're saying it's going to be solved and we won't even be thinking about it this time next year. if that's the case, people's estimates are -- >> how are they going to solve it? dedicated mobile barista section and make the drinks there? >> they're going to reconfigure the stores. i'm glad you asked that. the ones they reconfigure rd having the same old comp numbers. it's like panera. it solved its problem. the ones they have figured out a plan for are doing great. so, you figure if you can roll out that plan -- >> rapid order of panera is a big one win. >> isn't it, by the way? isn't it? >> you and me both. >> almost too much. what else can you tell us? >> chicken salad is only 372 calorie. >> not bad. what can you tell us about kevin johnson? >> look, i've known kevin -- >> to your point, tyler, the other guy didn't go well. >> look, he tried. it was a very difficult situation. and i think in a lot of ways,

howard had -- there was real estate that wasn't that good. stores got a little rundown. what kevin has done is kind of like when i talk to patty doyle at domino's, technology people, these are issues involving gigantic chains, hundreds of thousands of people. and you need to be able to figure out how to get them to work. and that's a technological marvel these days. coffee will taste great. can you get people in and out, get them in and out when coffee is hot. that's a technological feat as well as it is a -- >> my wife uses the app to order, the mobile app all the time. >> she's the one cutting the line. >> they'll say we got 20 mobile orders all at once. it's a problem of abundance really. >> it's the high-quality problem. >> you solve it, you've got t i wonder whether the people who

order online or using the app are less inclined to make an impulse buy. the scone that they see there or the cookie that is there, because they're focused. >> there's always the possibility that you run into that notion that we always have now, which is we know to go to target to pickup, we don't get the additional thing we would get if we go through the racetrack of target. >> right. >> in this particular case, they have more business they can handle. if they don't get the additional scone that's okay. but as long as they get the -- >> deeply personal question. do you like starbucks coffee? >> i do. >> i do, too. >> i do, too. >> you? >> i have that energy level. i get a little jumpy with it. >> people who work at

starbucks -- >> i do not know people who work there. >> i do not. >> my daughter's best friend works there. it is so hard to work there, i am so glad that they do get all those -- chance to go to college, great benefits. because people ask for things and they don't ask for what's on the menu and you've got to remember that and make it right. i feel awful now when i go in with my special design. because it's like, wow! everybody has special designs because it's so personal. >> yesterday the market was over caffeinated and it was jumpy. and it was sort of the trump bump had been dumped. >> slump. >> slump. i like that as well. >> good. >> eggs and ham, sam i am. >> what happened today? what happened yesterday? >> was yesterday a one-day hiccup? >> ten-year went to 2.3. wouldn't follow the ten-year. oil was only down 2017. >> why are we only down 20%?

maybe it is all about health care. it should be about what fedex says. >> 47 oil. >> talk about an an abundance. we're making too much of the stuff. we're fueling the prices ourselves. >> jim, thank you, as always. >> thank you for having me on. good interview. you'll like it. >> an impressive dude. and what a culture. >> that's kind of where we're going. great entrepreneur. >> catch "mad money" tonight. 6:00 pm. much more with jim and the starbucks ceo, howard schultz and soon to be the ceo kevin johnson. retail number of names getting a whack today. sears stock tanking double digits. i don't see it right there but trst me, it did. facing retail space, we'll explore coming right up. become alwayso a professional soccer player, but i never imagined that i'd be playing in kansas city.

when i was first elected mayor, they would talk about kansas city, kansas like... i can't wait to get out of here. through the years we lost over 30,000 people. we turned that obstacle into an opportunity. the speedway was the catalyst... and because of the speedway we now have a shopping area and a wonderful soccer stadium. and now we're starting to grow in population. it's extremely important to have financial partners such as citi® who believe in that same vision. this area is now a destination. there's people that come out here for entertainment. there's people that come out here to work...to raise families. and before the stadium was built it wasn't like that at all. i wouldn't trade playing in my hometown for anything. excuse me, are you aware of what's happening right now? we're facing 20 billion security events every day.

ddos campaigns, ransomware, malware attacks... actually, we just handled all the priority threats. you did that? we did that. really. we analyzed millions of articles and reports. we can identify threats 50% faster. you can do that? we can do that. then do that. can we do that? we can do that. various: (shouting) heigh! ho! ( ♪ ) it's off to work we go! woman: on the gulf coast, new exxonmobil projects are expected to create over 45,000 jobs. and each job created by the energy industry supports two others in the community. altogether, the industry supports over 9 million jobs nationwide. these are jobs that natural gas is helping make happen, all while reducing america's emissions. energy lives here. all while reducing america's emissions. ♪ guyhey nicole, happening here? reducing america's emissions. this is my new alert system

for whenever anything happens in the market. kid's a natural. but thinkorswim already lets you create custom alerts for all the things that are important to you. shhh. alerts on anything at all? not only that, you can act on that opportunity with just one tap right from the alert. wow, i guess we don't need the kid anymore. custom alerts on thinkorswim. only at td ameritrade. >> retail stocks continue to suffer. big concern today about the future sears, off about 14% right now. courtney reagan joins us now with more on the retail's latest

problems. they describe their own problems and their own ak filing. >> amazing. so many have obviously been writing off sears for so long. the department store itself hasn't acknowledged the stenlt of its trouble until now. in its annual report, they note, quote, our historical operating results indicate substantial doubt exists related to the company's ability to continue as a going concern. now, this is as sears does continue to execute various strategies and a number of financial gymnastics exercises with support from ceo and majority equity holder edward lampert and his hedge fund. still sears says it can't predict for certain that the measures its taking will generate the lick quidity needeo continue. but they say comments from annual reports are in line with regulatory standards that require management to assess and disclose potential risks that the company could face within a

year. hollar continues to say that sears can meetity financial and other obligations for the foreseeable future. sears is far from the only retailer doling out dower news today. j crew's sales are down 11% after they fell 7% last year. plus reports from bloomberg that suggest shoe store payless may file for bankruptcy next week and women's apparel retailer bb is looking to shutter all its stores to move online to avoid bankruptcy. a lot going on in retail. >> this kitchen sink statement that you might put in that filing but it did exist last year? >> it did not. >> does he address that at all? that the story has changed. >> exactly. it's the wording that it's a risk within this year or within the 12 months from the time that the statement is filed. so sears would say this wasn't a risk last year. but now from today, looking

forward 12 months it is a risk. so as a requirement, it has to say that. >> it's a -- listen, i know people don't care about sears now. it's 100-year-old -- >> 124 years old. >> big part of america. >> eddie lampert, a man i never met, just destroyed the company. >> it's amazing what he has done in trying to follow the path of the financial statements. he owns the majority of the shares. he also is the biggest bond holder. his hedge fund has been lending sears money. it becomes this very large circumstanlar reference. in some cases he wins and in some cases he loses. if you file for bankruptcy, his obligations get fulfilled first. others say, look -- >> gets wiped out. >> exactly. it's a win here, also here. >> you brought some of the past. let's not forget the subsidiary or secondary effects of this happening, which is that sears still anchors a lot of -- my mother worked at a sears in a

mall, by the way. trying not to get sensitive about it. if sears goes down, you have another mall with a giant store that's empty and the other tenants probably have a contractual right to say you're not meeting your minimum occupancy requirements. we're out of here, too, and you're left with another town in middle america with a half empty mall that is a slow rot and brings down home values. big story. >> they don't operate in the higher-end malls but some would argue that those malls can renegotiate at higher leases. >> i hope you're right. "power lunch" will be right back.

we are, of course, keeping a close eye on developments. 20 injured in an apparent terror attack on uk parliament. heading up the global brand agency interbrand. welcome back to "power lunch." >> good to be here. >> since we just talked about london, how that city, you expect, is reacting right now. >> i imagine -- i was there on 7/7 when that attack happened. british are very resilient.

can you see it on social media. people are posting things saying we're going to stand firm. it's a difficult time for anybody in a situation like that. >> absolutely is. and it speaks to -- we were speaking earlier to the power of social media. both to help a city recover and inform itself under these circumstances, but the other side of social media is that the people who aim to do us harm are very adroit, adept at using it. >> it's a universal thing now. we all have access to it. sometimes it's used for good, sometimes for bad. right now i received something on facebook, very simple system to say that you're safe. it connects all of your friends and tells them that you're safe. very, very clever. happened almost within minutes of the attack happening. so that's a powerful use of t. >> what's going on with google? they implemented some new tools after a slue of brands in the uk halted spending. we're getting news today that

at&t halted spending on google today as well. what do they have to do? >> all these new social media platforms are using advertising as a very powerful driver of their business. a large part of i think, as we all learn about these different things, there are different ways that people count success, whether it's like shares, how long do you look at things for. all of these things we're learning about every single day, the way that people actually plan media and buy advertising is changing tremendously. people talk about programmatic buying now. so -- >> that's the problem. that's what melissa is talking about. i think this is a big story, the at&t story. what we learned from mcdonald's donald trump tweet the other day on twitter and, of course, this, is that companies are -- let me ask you. are companies realizing, if they can't control, you know, where their message is going to go or

if some rogue employee is going to do this, it's maybe better off just not getting involved at all? at&t is worried some idiot posting a youtube video with hate speech and all of a sudden get 20% off your next phone ad pops up on top of this racist rant. you can't have that. >> no. any media channel has a responsibility to look after the content running over it. of course, the situation -- >> google says they're not a media company. >> you have a combination between user based content and fu full-on advertising at the same time. >> talk to us about the power of social media as a factor in the growth of populism. in other words, advertising used to be you put ads in big, well-known magazines, newspapers, the four networks. >> yeah. >> not anymore. and the people didn't have power. now the people all have a voice

and can be heard. >> yes and no. i remember when i first started working in the advertising industry, i remember looking at data statistics. it showed me that the most popular means of people learning about another brand was something called word of mouth. so now, of course, what we have is we have a much bigger case of word of mouth where people can connect globally. that's great because it's reduced the power of organizations and given some of the power back to the people. if that's populism, i would say that's a good thing. i think where populism is going wrong at the moment is the way it's being somehow used as a means to say that it's bringing up the wrong kind of politics or the wrong kinds of points of view of companies. one of the things going on in the world at the moment is a power restabilization, shall we say. we have seen it in the uk with brexit. trump's election. now the french and german elections are coming up.

it's populism or a mechanism where politicians and businesses can really listen to what people want. >> do you know that your team and group are all safe? >> i do know that they're safe. i have been in touch with them. the unfortunate thing is the location where it actually happened is one of the most popular tourist spots in london. it's right next to big ben. there is always a crowd of people there. it's very unfortunate. >> a lot of school kids. >> you're absolutely right. >> jez, thanks for being with us. setting you up for the final hour of trading day. lunch will be right back. kevin, meet your father. kevin kevin kevin

kevin kevin kevin kevin kevin kevin kevin trusted advice for life. kevin, how's your mom? life well planned. see what a raymond james financial advisor can do for you. usaa gives me the and the security just like the marines did. the process through usaa is so effortless, that you feel like you're a part of the family. i love that i can pass the membership to my children. we're the williams family, and we're usaa members for life. what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create,

not just wealth, but things that matter. morgan stanley whether you're after supreme performance... ...advanced intelligence... ...or breathtaking style... ...there's a c-class just for you. decisions, decisions, decisions. lease the c300 sedan for $389 a month at your local mercedes-benz dealer. mercedes-benz. the best or nothing. so what else is new? humm..she's doing good. she needs more care though. she wants to stay in her house. i don't know even where to start with that. first, let's take a look at your financial plan and see what we can do. ok, so we've got... we'll listen. we'll talk. we'll plan. baird.

just about an hour left in your trading session. stocks trying to carve out gains especially after yesterday's big drop. a surprise today. tomorrow, though, all eyes will be on the health care vote. that should happen and definitely will impact the markets. if it does, you have also got this london terror attack today. mark, you build portfolios for the long term. it's not just today. it's been seemingly monthly, quarterly at least now. do you build in to your portfolios higher terrorist risk, higher geopolitical risk? if so, how would you do that? >> we don't build in terrorist risk. the attacks today are terrible. we build portfolios for the long

term. inter-generational. most of our clients have endowments and foundations they expect to last through a number of generations. we factor that in in terms of how it affects the risk premiums associated with the equity classes. >> long-term liquidity premium. >> when you invest in capital buyouts you should earn some premium above the public markets. it's the liquidity premium. you can't look it up or read about it in the "wall street journal." we've figured out a way to extract it from the market and identify it for our clients. >> how long do you hold, following on what you just said, how long do you hold your average holding, number one, and how much more today do you make use of passive strategies than you would have ten years ago? >> starting with passive and going to the holding period. we use both active and passive strategies in our portfolios. we are in fact agnostic.

which is not particularly controversial but we look to find the most efficient way to -- >> are you more passive today than a decade ago? >> yes, we are. as the market for etfs and other products has expanded there are greater opportunities to use passive products as you construct portfolios. we look to do that in terms of back-filling the asset allocation and we use active management for passive depending on which is the right way to work. to get the liquidity premium associated with private capital, you have to do it with very good managers and they're all active. >> the second question, how long do you hold a typical holding? >> in the public markets we hold for quite a long period of time. we'll put on positions with managers. >> years? >> oh, yes. in the private capital markets, if you are investing in a traditional private equity fund, the term of the fund will be approximately ten years with

maybe one or two-year extensions. we are investing for years and then some. >> looking at the opportunities right now, oil, for instance, some of the valuations there. some might say this is a once in a generation opportunity to invest in oil equities. do you agree? >> we do. we like to play it through the private capital markets. we like natural resources, working with other private equity investors to invest for the long term, buying cheap assets today that we expect to generate value over the next five to seven years. we are not looking for the short-term payoff or next week, month, year. we're investing for the long term on the private capital side. >> like land, pipelines. >> yes. >> do you use hedge funds as part of your investing approach? if not, why not? if so, what value add do they deliver? >> hedge funds are the ongoing debate. a headline every day, right?

almost hard to get away from it. we do use hedge funds, to answer your first question. the way we deal with hedge funds is we extract all of what's called the beta. systematic market returns you can get cheaply. >> we have to wrap it there. >> they're playing our song. >> we appreciate it, mark. >> thanks for watching "power lunch." "the closing bell" starts now. hi, everybody. welcome to "the closing bell." i am kelly evans at the new york stock exchange. >> i'm bill griffith. a busy day. we're following four key stories at this hour and will do so over the next couple of hours. here in the u.s., president trump meeting with the congressional black caucus behind closed doors. we could get comments from the president within the hour. also on capitol hill, there are last-minute efforts to garner support for the gop health care bill before tomorrow evening's