fair enough, thank you for being here. >> final trade, real quick. >> nielsen, the rating agency, bought it oday. >> gm continues to break out. >>alb up another step. that does it for us again, thank you for being here thanks so much for watching as well, we'll see you tomorrow "power lunch " begins right now >> welcome to "power lunch" i'm tyler mathisen deal or keep dream a lot of confusion about president trump's meeting with nancy pelosi and chuck schumer and what came out of it with respect to daca. will it play into any bipartisan deal on taxes, too there are a lot of moving parts, we have live reports coming up and dropping the hammer, president trump is blocking china's move to buy lattice semiconductor. it comes at a sensitive time for u.s./china relations are other deals now in jeopardy? plus, cbs' ceo les moonves

making the case for why conventional television isn't going away, not so fast, and why cord cutting isn't such a big deal keep that dial tuned here because "power lunch" is beginning now. any gains by the major three averages would give them record closing highs, energy is the best performing sector today thanks to oil, crude, in fact, topping 50 bucks for the first time since august 10 tenet health care shares soaring. reporting the company is exploring a possible sale. michelle >> got it melissa, thank you. here's what else is happening. the federal trade commission is opening an investigation into the massive breach at equifax. the company's ceo is set to testify on october 3 before the house energy and commerce committee and the chairman of that panel will join us in the next hour on "power lunch.

equifax stock sitting at two-year lows. facebook is launching a new crisis response center to help users during disasters and attacks. and bitcoin is tanking 10% after a big chinese exchange said it's closing operations brian? i'm brian sullivan we begin with a busy day in washington, d.c. the president's wheeling and dealing with democrats continues and how speaker paul ryan weighing in. the first senate hearing on tax reform also under way. we told you it was a busy day. we have full team coverage with all of it. eamon, let's begin with you and the big dinner last night. >> that's right, brian, it was a big dinner in washington, d.c. last night at the white house. democrats meeting with the president last night the president has been in florida today. he popped down there to sort of thank the first responders, cheer on the federal, state, and local response to the hurricane, but a lot of folks in washington here still trying to scratch their heads and figure out whether there was a deal or not

between democrats and the president on immigration last night. ultimately the president had a chance to talk to reporters in florida and give them his sense of whether or not there was a deal, he appeared to add another asterisk to the idea of a deal here's what he said. >> a lot of people want this to happen, they expect it to happen and we'll see if it happens but we'll only do it if we get extreme security, if we get not only surveillance but everything that goes along with surveillance and ultimately we have to have the wall. if we don't have the wall, we're doing nothing. >> the president saying "if we don't have the wall, we're doing nothing. democrats who left the dinner at the white house last night said the deal they struck, or the agreement, as they called it, included nothing about the wall, the wall was excluded and would be separate. the democrats said today they expected that the president could continue to push for wall funding but it would be separate from anything on daca, that's

defer actions for child immigrants we'll wait for the president to get back to washington for more details. >> thank you, eamon. first senate finance hearing on tax reform taking place. >> melissa, the committee chairman making clear that the negotiations on tax reform are far from over. hatch is a part of the big six, members of the white house and the administration as well as gop leader shship hatch said whatever they agree to would be guidelines and not a guarantee. >> anyone with any experience with the senate finance committee knows we are not anyone's rubber stamp if a bill particularly on something as consequential as tax reform is going to pass in this committee, the members of the committee will have to be involved in putting it together. >> one major point of contention

remains what happens to tax rates for the wealthy. hatch says he stands behind president trump's promise that the wealthy will not benefit any changes in the tax code. >> i truly don't know of a single republican who, when thinking about tax reform, ask themselves what they can do to help rich people that has never been our focus an it's not our focus now. >> but ranking democrat senator ron widen on t committee said there's a loophole the size of a lunar crater depending on whether the rates go to pass through businesses he mentioned the state and local tax deduction, what to do about the mortgage interest deduction and whether or not to double the standard deduction i will be interviewing senator hatch tomorrow in an exclusive cnbc interview so hopefully we can get more details out of them then back over to you. >> thanks ylan staying in washington,

president trump blocking a chinese-backed private equity firm from buying lattice semiconductor. he followed the recommendation of the committee on foreign investment in the united states which had national security concerns about the deal. the u.s. treasury cited worries about the transfer of intellectual property to china, the use of lattice' chips by the u.s. government and that one of the investors in the deal is owned by the chinese government. china reacted negatively c cnn's eunice yoon is in beijing. chinese had a reaction that governments take when this happens. it cried protectionism the commerce ministry expressed its concern saying "we believe conducting a security review for investment deal and sensitive sectors is a country's legal right but it should not become a tool to promote protectionism. we hope the relevant country, the u.s. in this case, can see such normal business activities objectively and fairly and provide fair treatment."

the state press went one step further with the idea that china is the one being treated unfairly the communist party paper the global times pointed out in an editorial that china is not in the top ten compared to the uk, japan or germany when it comes to foreign direct investment in the u.s. but that nearly one quarter of the cases involve chinese companies. eunice yoon, cnbc business news, beijing our next guest says he's not surprised by trump and the decision here's to explain why is mario mancuso. mario, good to have you here. >> good to be here. >> why weren't you surprised >> i'm not surprised at all. i don't think the decision marks a turning point but i think it's illustrative of where we're at in the u.s./china relationship there are two pieces this. one's a macro piece which is that geostrategic competition between the united states and china is intensifying and both countries are sensitive to

investments by the others. there's a micro point here which is that their transaction is one of a number of semiconductor transactions with respect to chinese buyers that have run to head winds what makes this transaction no notable is that unlike other transactions, there were no obvious risks. >> the treasury says there were worried about the transfer of intellectual property and the fact that there was a chinese state-owned company backing this investment. >> well, there was nothing obvious before the treasury department issued the statement yesterday so from the perspective of the parties but typically when you look at these transactions and the u.s. business on the block, so to speak, you look at what's the u.s. government sales, where are the facilities located, is there sensitive technologies frankly, lattice had none of that and the company in good

faith publicly asserted pretty strongly it had none of that but what is very important to note is that the u.s. government acting through cfius clearly disagreed and that suggests something that i think on a micro level is important which is that the u.s. government maintains a pretty strong intelligence function back office independently looking at these deals and there may be applications for technology which is to a commercial business person may look frankly benign, reasonably so but to the government that has access to different information, different -- a different way it uses the information they come to a different conclusion, they obviously did here. >> they did in 2016 when the obama administration blocked a chinese chip company from buying the u.s. army of a german semiconductor company as well. so here's my question, mario you answered michelle's question saying there's no real evidence. under the exxon florio provision of 1998 which requires you to show clear evidence of national security risk, does lattice

semiconductor have some kind of an appeal here >> so i want to clarify that statement. i said there were no obvious issues of national security. >> it may be secret or hidden? >> it may be classified information that the government has and that's the essential point. i think the government -- rejecting a transaction is kind of a traumatic event there's a sense in a public narrative that this is something easy to do what's stlieking abo instrikingl is that the entire board of cfius recommended unanimously to block this deal and the president did that i do think obviously lattice came to a different view, can i don't think bridge came to a different view but we are where we are and it says a lot about deals for chinese buyers and people who would partner with them, for example private equity sponsors, but i also think u.s. board rooms that are considering selling an asset to foreign persons, especially if the buy side includes the chinese buyer, i think we have to think twice.

>> tyler has a question, mario. >> sure. >> as i understand it, lattice offered to transfer ownership of the intellectual to the u.s. government i may be incorrect and maybe you understand it in a different way. why wouldn't that have solved the problem and i wonder whether it's because even if you do that, if a chinese company is the owner of the semiconductor, they could reverse engineer the intellectual property anyway why didn't that get rid of the worry? >> i am no longer on cfius but there's a new theme in reviews that looks to things called bleeding edge technologies in other words technologies that are so sensitive that the u.s. government hasn't got on the classifying them yet and there's also a trend toward looking at certain know how my hypothesis, my suspicion based on public information is that the u.s. government felt that there was something

intrinsic not necessarily about the product but about the alchemy of lattice in putting together those products that would have transferred. >> i see. >> so we have -- i think, again, the noteworthy point is that the u.s. government is looking at these transactions and they have a much wider aperture. mario, i know this is not your bailiwick but if i'm an investor in these companies but if i look at a company and they have this intellectual property, there should be an embedded discount because the sale of that potential property or the sale of the company and therefore the property also is to a limited audience you can basically x out china and probably a lot of other parts of the world as well >> you know, putting aside the financial impacts on equities and how an investor would look, i think your point survives which is that if you're a technology company, a u.s. technology company or a foreign technology company and not just technology, it could be other sensitive sectors that has u.s. operations, i think you have to think very carefully in this environment about selling to

certain buyers i don't want to paint with a broad brush. chinese deals are getting approved, they will continue to get approved but cfius will always now be a question it may not always be an issue but it will be a question. i should point out that china has a similar investment regime that it applies to investment in its own industries and, frankly, other countries around the world, for example, recently germany, have sort of up armored its own similar cfius-like mechanisms so this is a global trend. it's about making sure countries' economies are resilient and protective of their national security interests. >> mario, thank you so much. mario mancuso. >> thank you all right, on deck, grading the airlines the new report card is out and the number-one complaint by flyers is -- coming up but first, you may not like banks, but is your best revenge going to be making money on their stocks we'll get some names for you from mike mayo ahead you know who likes to be

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securities great to have you with us. i get the fundamental arguments for banks, banks are -- their balance sheets are very strong, the valuations are not very high right now. when will it stop its correlation with the yield curve at this point? it seems like it's just simply trading on what the yield curve is doing. >> when you say banks are very strong, we're talking u.s. banks. >> u.s. banks. >> i don't feel as though the world understands just how strong u.s. banks are. banks have the strongest balance sheets in a generation, they have enough capital to absorb not one financial crisis but two financial crises and it's not dependent -- the growth is not dependent just on great loan growth or higher -- >> but you acknowledge that it's a yield curve. you can see where the yield curve is going on any given day practically and determine the direction of trade for that seconder. >> well, that's been true but when you pull back the lens the last 25 years the biggest factor driving bank stocks other the long time frame is do banks generate returns above their cost or capital? we think banks are on the cusp

of creating value for the first time in a decade so you go ahead and give me a yield curve and less loan growth and not that much of a great margin and no deregulation and we still think banks get back to that point this is back to school last week was back to school others start this week in the new york city area take out your pencil, sharpen it, do the math, we've done the math we have and these banks are resilient. >> so to melissa's point, historically the way you traded banks was bought them below book value and sold them above book value over and other again. >> if you're going to invest in banks, find me someone who forecasts rates very well. that's a tough way to urn a living >> not even the fed is good at that. >> but our call is it cuts through the cyclical changes this is the biggest structural risk reduction the banking industry has had for decades and

these structural changes are what's going to continue to drive banks and you have in our favorite citigroup and the industry as a whole from value destruction to value creation. >> and you point out -- michelle points out book value. that's important because in your most recent note you say that i've traded an average of 1.3 times book value or so, historicals 1.7. why should we believe that historical book value is permit innocent right now in the comparison of banks? right now they have different sets of regulations, they have different sort of risk-taking appetites at this point in time, whether they want to or they don't. but it is there. >> well, you could make the case that some of the value lagss should be greater than historical given a lower risk. ten years ago today is when for the first time in developed markets in a generation you had queues, lines, at a uk bank waiting to take our their deposits from the bank that's ten years ago today, september 14, 2007 now ten years later the risk profile is dramatically less

the percentage of subprime lending much lower the oversight by bank boards of directors and regulators and people like you, any time there's a hint of a problem banks are on that. we think loan losses will be lower for longer, greater earnings stability and that drives a lower cost to capital and higher valuation. >> so you like chase, citi, bank of america, what other big banks are there? and what don't you like? >> we love citigroup i've been on your show many times before the financial crisis. >> there any you don't like? >> our target for citigroup is $140 over four to five years we think the stock doubles from here the one we got off and this goes back to 2012 is morgan stanley no imminent problems, we love the wealth management business, we just think the self-help story is done and we'd rather go with a name like citigroup where we see more self-help to come. >> all right, thank you, mike. on this tenth -- i don't know if anniversary is the right word

for such an awful event. good to have you breaking news on new sanctions from the treasury. eamon has the details. >> that's right. the treasury department just announcing a few moments ago new sanctions against 11 entities in iranian-related trading. they're saying here that they have targeted supporters of iran's islamic revolutionary guard corps and networks for cyber attacks being designated here -- that's the treasury speak for being sanctioned -- are 11 entities and individuals for engaging in what they call support of designated iranian actors or malicious cyber-enabled activity i won't read you all of the names of these entities that are being designated but one of them in this release from treasury is interesting going back to those ddos attacks, the cyber attacks against financial institutions in 2012 and 2013 that a lot of our viewers may remember they're naming here the individual and company they're saying that were involved in creating the iranian botnet.

they were responsible for managing a botnet which was used to target 24 corporations in the u.s. financial sector during those ddos attacks in 2012 and 2013 they're detailing who was involved in that attack and which entities they worked for at the time. all of those entities now being designated by the united states treasury which means they'll have a tough time doing business in the globalen if system moving forward. back to you. >> iman javers in washington po cd w, flight delays, a new rertaron what it's like to fly. that's next. s gotten to know ous so well that is feels like he's a part of our team.s with one phone call, he sets me up with tailored products and services. and when my advisor is focused on my tech, i can focus on my small business. ♪ a dell advisor can help you choose the right products with powerful intel® core™ processors. ♪

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welcome back to "power lunch. the latest report card for the airlines is in who did the best who did the worst? what did flyers complain about the most phil lebeau is in chicago with the answer. >> delayed flights was the number one complaint look at which airlines did the best in the month of july. hawaiian once again at the top of the list, as it usually is, followed by alaska, delta and sky west at the bottom of the list, jetblue had the lowest on time arrival percentage at 63.5 you see american spirit and southwest. speaking of american, the airline says it expects to have miami, its hub in miami, up at full service by the end of the weekend. yesterday i had a chance to talk with american ceo doug parker about any concerns over lasting lingering impact of people not booking flights to florida he doesn't see that happening.

here's what they had to say. >> it should haven't an impact on demand to the region. in total it should haven't an ii impact on american airlines. we have people down there that we're making sure they do everything they can to get relief efforts but for long-term financial performance, we don't expect it will have an impact on american. >> bottom line is this -- people may cancel a trip they had booked to the virgin islands but they won't cancel their vacation, they'll just rebook somewhere else in the area that hasn't been impacted. >> phil, a different note. >> a little bit lighter of a note i don't want to put you on the spot, tell us about that united and american gate check fee. apparently if you book the lowest-cost ticket, the basic economy and your bag doesn't fit under the street -- because you don't get overhead space -- they're whacking you with a $25 or $35 fee. >> i don't think that's new, brian. i think that's been there for some time and that's not just with united. a number of airlines do that the deal is you buy a ticket, a

very basic ticket, you get one small carryon. you don't get to bring a bag in there and say "oh, gee, i forgot." uh-uh, it's written in the ticket when you buy it. >> but it has to fit under the seat this is not even an overhead space. >> like a briefcase. you're paying for overhead the idea of these seats, brian is that you're buying the most basic fare similar to what you would buy with, say, a spirit airlines ticket. you are charged if you bring a bag to the gate at spirit, it's the same thing with the legacy carriers as well. >> you trade your humanity for a discount >> your choice, though. >> it's your choice, brian spare me the humanity. it's your choice, you pay that price you pay that price, it's there. >> i was making a joke >> amen, phil. >> he's here all week, folks. >> he must have flown premium economy back home. he's worked up new pictures out of the florida keys showing hurricane irma's massive path of destruction.

we'll have the latest nest but hurricane harvey will deal a bigger blow to one industry in particular we'll llouhi ote y wchne and why that could be a good thing next. , not reacting to market downturns. focused on what you love, not how your money will last through retirement. let us help you with those decisions, and get on with your life. we make it easier to plan for retirement with day one target date funds from prudential. look forward to your 401k plan.

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hello, everyone, i'm sue herera, here's your cnbc news update at this hour. president trump and first lady melania trump arriving in ft. myers, florida, at the start of their visit to some of the storm-ravaged areas of that state. mr. trump praised the recovery efforts so far but also talked about the possibility of an immigration deal. >> a lot of people, a lot of people want this to happen, they expect it to happen and we'll see if it happens but we'll only do it if we get extreme security, if we get not only surveillance but everything that goes along with surveillance and ultimately we have to have the wall if we don't have the wall, we're doing nothing the hollywood, florida, police department says it has been granted a search warrant to investigate the nursing home where eight elderly patients died its detectives are on the scene. it says 145 patients were evacuated. selena gomez says she's

recovering from a kidney transplant the pop star and actress says her long-time friend was the donor and the transplant was necessary because of her battle with lupus which is an autoimmune disease we wish her the very best of recoveries that's the news update this hour i'll send it back to you, melissa. >> thank you very much, sue herera. the president touring the recovery and relief efforts in florida today. this as we are getting new pictures out of the florida keys, contessa brewer made it to the keys to bring us that footage. she is live in miami with the latest contessa >> reporter: melissa, we've been watching president trump tour ft. myers and naples and these areas hard hit by irma governor rick scott toured the florida keys incredible damage to homes and boats, businesses and infrastructure monroe county still won't allow residents to return to marathon key, that's the midpoint and key west and all the islands in between. power, gasoline, self-service,

running water is severely limited and those places, though access is slowly creasing, the federal government is throwing massive resources at irma relief some 38,000 federal workers are involved in the effort and we watched fema trucks lining up to go into the keys yesterday president trump in ft. myers and naples is promising floridians the nation's undivided attention will be spent on rebuilding. >> you see the people immediately getting back to work to fix up their homes, just like bobby and some of the others so i just want to tell you we are there 100% i'll be back here numerous times. >> reporter: in key west, neighbors pitched in with crews to clear those streets law enforcement did tell me they consider this a search-and-recovery effort at&t just told me that they're using drones to survey the damage and figure out what

happened and verizon gave me abn update they called in a tower to replace one that had fallen. part of the massive effort of getting infrastructure back up and running. melissa? >> contessa brewer in miami. >> sure. well, the destruction from hurricane irma in the florida keys is devastating, your next guest says hurricane harvey dealt a bigger blow to his business and employees group one automotive is the third-largest auto retailer in america headquartered in houston. they have 16 dealerships in the area it also has dealerships in southern florida to talk about the impact is earl hesterberg, ceo and president of group one automotive thank you very much for joining us your employees, everybody was accounted for and okay >> well, everyone's accounted for but we had 500 people severely impacted and many lost their homings a homes and lost g but everyone is healthy. >> our thoughts and prayers are with them. on the dealership side, earl, how many of your dealerships were either partially or perhaps

completely flooded >> well, we had two severely flooded here in houston, one down in clear lake i believe you were in galveston during the event so just north of that. another got water up toward kingwood which was kind of a well-documented flood area so we came out pretty good but we have six dealerships in beaumont and the third landfall was there and they got hit pretty hard. >> you are a public company so i'll ask you about the financial impact are those cars insured you lose them, your salesmen get sales but does anything get paid back on either end by insurance? >> our deductibles are so high we eat those we released last week the total costs of those cars and disaster pay to our employees while we were closed and building damage and so forth we'll have a one-time hit of about $15 million and then, of course, we lost a week of business here in houston and beaumont at the end of august so

that's pretty much the financial part. >> how many cars in your inventory were destroyed >> well, surprisingly only about between 250 and 300 out of 15,000 so we're pretty good at that we moved them around the week before we put pumps in lot wes knew to be low but when the bayou floods near your dealership, there aren't pumps that can pump that zblast no. so eventually looking down the pike a bit, does this end up in more sales for you i would think it would because so many people have lost their cars, they're going to be coming to your dealerships and buying. >> they're already there there was a bit of a time lag because primarily people were just dealing with their personal lives and we've had gridlock around here until this week when all the major roads were able to open again perhaps this monday. >> how many people lost cars,

earl how many cars total in houston do you have any idea you must. >> well there is a fairly credible estimate from a third party, an economist i believe with cox automotive and they estimated the 00,000 cars and plus or minus it could be that great. if you lost a car, you lost all your cars, everyone was home, if you had two cars, they were flooded, you lost two. if you had three, you lost three. these cars are under six, eight feet of water, not 18 inches of water. >> earl, what we've seen in your sector in the auto dealer sector, your stock is up 16%, auto nation is up 10%, hertz and avis on the same notion people need cars. are you seeing the immediate boost to prices because the knock on the industry before this event, before these two storms had been that used car prices were basically falling off a cliff. but this is a huge event it's sort of like a mother

nature's cash for clunkers program where cars are gone. inventory becomes tight. are you seeing prices rise >> not yet but we'll see a short term dislocation in the market and the prices will go up but it's a big flexible market over time i don't think it will be a big factor there will be short term reaction we're okay right now but sales have been picking up the last four or five days to a fairly substantial degree. >> i bet approximately 500 employees, you mentioned, experienced some level of hardship, do you do anything for them? what's the process for them to get back on their feet >> oh, indeed. we've raised almost a million dollars in a relief fund people have been fantastic, other dealer groups have made contributions, we put company money in, all of our executives put personal money in, our partners have put personal money in some ceos of our auto suppliers wrote personal checks. we've got about a million dollars and we've already

distributed the best part of half of that i've been out personally handing out checks i probably handed out more than half the checks. it's just terrible, zbloe what are they using it? to pay the rent because they can't live where they are? >> well, we got them all $500 quickly because many were in hotels so the first thing is these people are in hotels then we were able to fine tune it more to people who had greater needs. all these flooded cars, employees can't get to work in houston if they don't have a car. our employees were rescued by helicopter off the roofs, they left with only the clothing on their back we had to give some of them gift certificates to a local department store you just can't imagine the tragedy that goes with this. >> and so mpressive that they moved 98% of the inventory before the storm that must have been a herculean effort. >> we're pretty good at this this is our sixth hurricane

since i've been at group one we've got an experienced team. we're much better at controlling that than we are these floods and personal impacts we're pretty good at this. >> well, thanks so much for joining us, earl, and discussing the impact and what happened we do wish the best of luck to all your affected employees. >> thank you so much cbs chairman and ceo les moonves telling cnbc he is not concerned about cord cutting what else did he say we'll hear next first, though rick santelli standing by with today's bond report. interesting day, michelle, we had hotter-than-expected cpi, the bank of england sounds as though they have to deal with the issues of the day which are more inflation and better growth so maybe tightening. it will reflect in the charts. one week of two year note yields upward today's data up nine from the lows of the week ten years up 19 from the lows of the week on monday, guilds are

up 27 from their intraday lows on monday and finally the dollar index up about 1.25 cents since their lows on monday but still seem to be lagging considering the big push in interest rates hey, "power lunch" can return in a couple minutes, don't touch the dial we'll call on amazon on the other side of this break stay with me, mr. parker. when a critical patient is far from the hospital, the hospital must come to the patient. stay with me, mr. parker. the at&t network is helping first responders connect with medical teams in near real time... stay with me, mr. parker. ...saving time when it matters most. stay with me, mrs. parker. that's the power of and.

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there so even there there were some issues. but as for the interviews themselves, we started with lowell mcadam, we'll start with here you well know one of the key considerations when it comes to the wireless world we deal with so often is the incredible competition going on right now for a long period of time verizon relied on the superiority of its network to gain customers and keep customers but that doesn't seem to be quite as clear any longer and it's dealing with an environment in which some of its key customers such as at&t are offering directv now, for example, their ott offering at 10 bucks or the prospect when they finally complete the acquisition of time warner of saying to their customers, hey, we'll give you free hbo. these are not -- these are significant concerns, really, one would expect for verizon when it thinks about how to woo new customers and keep current customers but mr. mcadam seems to not be particularly

concerned. take a listen. >> if we wanted to offer something like hbo, call les and get show time on a commercial arrangement, i don't need to own the content in order to provide that to customers. i don't know that you have to give away something that has value in order to sell your service. >> his view, of course but there is continued questions as to whether or not those kinds of offerings whether, again, it's time warner or i should say at&t with directv now or t-mobile with the netflix free offering that it's making, mr. those are going to make inroads, as for the aforementioned mr. moonves, i did sit down with him as well. one of the key question there is is sporting programming, the nfl a very important part of cbs of its all access product and continued concerns about ratings declines given the performance last thursday night at least i asked mr. moonves whether he

was concern it had nfl is not the ratings juggernaut it once was. >> i'm not concerned sunday afternoon was down a bit but we were in the middle of the biggest hurricane in decades so when you see millions and millions of people watching the weather channel i think the nfl is still the best property on television, i'm not worried about a decline in the ratings. >> mr. moonves, as is typical, doesn't seem particularly worried about a lot of things that other investors are not sure why the stock is so weak they had a positive presentation earlier. he said the ad market is strong in terms of scatter and made the point he has made many times which is that cbs is a ben fair yish of the other very large trend that we talk about so often which is people escaping the bundle of programming and going with these smaller skinny bundles of over-the-top offerings that are out there he says cbs is on virtually all of them so we will still be beneficiaries. >> in other words they'll still

get paid no matter what? >> right, exactly melissa. >> david, pivotal research says that nfl year over year ratings were down something like 14% so i admire mr. moonves's optimism and, of course, the hurricane did occupy a lot of the nation's attention, as it should have, but weaker nfl ratings and college football ratings are not new. he seemed very optimistic. >> i agree and we've asked him the question before, i'm always expecting perhaps he'll admit to a certain extent that there is weakness they're worried about. that does not seem to be the case again, leslie moonves is a positive fellow. cbs has done very well for many years with the content it has. he almost seems to be saying the despite the loss of eyeballs to a certain extent, the numbers are large enough to get the advertising dollars they need to and he's made that point time and again whether it's the nfl

or whether it's scripted programming, the comedies that cbs has. >> in the comments he made during the conference, david, it was interesting how much he smack-talked his competitors he said "we did it in house, we didn't pay a billion dollars for bamtech as disney did. when it comes to competing for producer talent he made the point chuck laurie on two and a half men wouldn't have made as much money if they went to netflix. still investors don't seem to separate any of them they're down across the board and cbs is not weak just today it's down 12% in the past month. this is a seconder under tremendous pressures and investors don't care what guys like les moonves have to say. >> they don't. it's under tremendous pressure as a result of this significant move he admitted it's happening with increasing frequency, that is people cutting the cord and moving to over-the-top programming bundle of some kind.

he says with all access and their placement of these bundles they'll be okay. but you're right, the stocks themselves have been thrown out completely and other than time warner, the only name up, of course, because it's getting acquired by at&t, melissa, everything else has been poor other than, of course netflix. which seemingly has taken so much of the accretion for itself in terms of the market cap losses that have taken place in the sector thus far. >> yup fascinating interviews, david, thank you. david neighborer >> sure thing. >> speaking of streaming, julia? >> hulu will spend $2.5 billion on content this year, that's according to mike hopkins. now to put that $2.5 million in context, netflix says it's spending $6 billion on content this year and $7 billion next year and analysts estimate that amazon prime video will spend about $4.5 billion on content this year. so hulu is spending less

but the company also announced that hulu will launch seven new original series in the next six months so it seems like they're amping up their commitment to original series and if you look at the number of subscribers, hulu said it had 12 million subscribers as of may, 2016, it means hulu is hulu is spending $2 million annually compares to netfl netflix, interesting to look at this big investment of the content of the streaming place >> who's the beneficiaries of this content and who are they and can i invest in them >> hulu is interesting because it is co-owned by disney and 2020 fox and comcast as well as a small portion owned by time warner so it is those companies that are owning hulu.

so the media giants have tv division which is the division that produce the contents that they cancel anywhere >> so everyone from time warner to disney could benefit. >> i am confused of hulu creating contents because i thought the whole idea was all those owners that you mentioned have a lot of contents that was the whole -- people can stream stuff and can watch under demand >> hulu is competing with netflix and amazon they want people to subscribe to hulu and their contents. that was a big hit and they have other shows like casual so they're trying to amp up how much original content that they have and they'll be launching seven new original series in the next six months. it is not just what you find on tv, they make sure it is worth it to subscribe to hulu.

okay, thanks julian. >> all right, coming up, opportunities just for you, the four big wall street calls that you must hear about today. we'll make sure that you do cling a big call, called amazon "street talk" is next.

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time for "street talk. we kickoff with amazon reiterating of its rating. morgan stanley is now checked. >> so every time you go to every store now, they ask you if you want to sign up for their cards. i guess if you go to whole foods. >> do you want to be a prime >> second stock, i got two bioteches. >> bmrn, they call a long-term biotech of the most critical portfolio in industry.

it is expected to be approved of next may of next year of the new drugs. >> it has not been participating in the biotech surge that we have seen late >> hertz, hurricanes can be the positive impact in the near terms. these factors will abate long-terms >> yeah, it does hurt. final stock is ultra genyx, it is based in nevada, california >> leading candidates to treat ultra genyx. face two trial, facing strong

political benefits so $62 target is less than that, well, about 18% upside based on the move today for ultragenyx. thank you, guys. >> the stock that hits hard is equifax. equifax's ceo says to testify on october 3rd and the chairman of the committee is going to join us on "power lunch." find out what he wants to know what it called mean for the trucking industry of tesla >> the second hour of "power lunch" beginning right after this break you know who likes to be

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welcome to the second hour of "power lun rch," i am meliss lee. elon musk calling the company semi truck a quote, "beast and

unreal." the cleveland indians going for a modern era baseball record they won 20 straight games we'll talk to the general manager, live from stadium, "power lunch" starts now lets get a check from the market any gains by the major index will give them record closing highs. energy stock leading the way today with the best week chesapeake gaining new resources. avis budget is down after morgan stanley issued warnings on the car rental sector. >> i am michelle caruso cabrera.

it is kpekexpected to be compled next year of the distribution base in mexico facebook announcing they have 1 billion active customer users. pedestri pinterests announces they have more users male sign ups are growing three times faster than females. president trump is in florida touring the damage done by hurricane irma. in washington more back and forth of the deal on immigration. was there any deal aimen is joining us to sort it all out. we are getting conflicting comments coming from the president himself in some respects >> we have been trying to sort

through this all day it depends on the differences between an agreement and a deal because after that dinner at the white house last night democrats emerged and chuck schumer and nancy pelosi issuing they have reached an agreement with the president, ultimately the deal would involve having some spending on border security without the wall and also in shrining permanently protection for dreamers, those young immigrants who came from the united states as a result of their parents' decision here no deal, no deal is made last night on daca. massive border security would have to be agreed to i had the opportunity to speak to nick mulvany. he says there was no final deal. here is what he said >> you cannot do a deal last

night without having the republican leadership involved as well. i think it was productive but it is not fair to say it was a done deal >> not a done deal the democratic leaders issued a new statement today. here is what they said president trump's tweets are not in consistent of the agreements reached last night there was no final deal. democrats saying there was an agreement but no final deal. i guess it depends on what the meeting of the deal it speaking of deal, we are getting tax news off of capitol hill this is crossing the wires over the past couple of moments kevin brady says he does not expect the september 25th tax plan to be specific about corporate and individual tax breaks we have been told that we would get a preview of the tax plan and a lot of the meat on the bones on september 25th or that week now brady is saying it does not think it will have specifics or

corporate or individual rates. what will be relief lease on september 26th at this point we don't know, we are waiting more for mr. brady >> it is all about the numbers, right? >> if you don't the number, you don't have the deal. before the dinner with president trump that nancy pelosi attended, she also met with mexican foreign minister discussing daca. our cameras caught up with the foreign minister, he told cnbc expressing concerns of how concerned mexico is of the individual daca program. he said mexico will welcome them back but that's not what they want >> it will be a tremendous human capital going back to our country, we are talking about doctors and engineers and talented and creative people therefore, for every dreamer that goes through mexico, mexico

wins and the united states will lose but, what's important here is that these young people want to state. it is a country that they have known and this is where life is and this is where they want to be >> mexico takes a particular interest in the issue because the vast majority of people in the program are from mexico. more than 600,000. the next percentage is salvador. mexico of 77%, daca. >> all right, is mr. trump meeting democrats assign of bipartisan and does it mean the agenda have more momentum. joining us to discuss what it all means for the market, barry james and mike labella let me start, mike, with you, there are a viert of things that helping stock rises today. the economy is reasonably good

there is the prospect at least possibly of tax reform of those three, what's the most important one and what are tax reforms does not make it through the finish line. >> i think the under line, the corporate earnings are clearly going to be the driver inthat of the market. if you look past the election, what you saw was an uptake in stock that would approved and done well if there was tax reform what you have seen since then is there is a complete reversal in the market i don't think the market does not price in on a lot of progress on these events going forward. definitely, it would be nice to have in terms of tax reform. i don't think those numbers are priced in the markets right now. making in terms of the bigger market going to back into under lining fundamentals. that's been, it is not in great shape. >> barry, i don't mean to speak

for mike but i am going to paraphra paraphrase he also, we maybe entering a period of the expectable returns for stocks would be lower than they have been not mike, if impair phrasing you correctly there. >> absolutely. >> get your response to that do you share mike's view that we maybe entering a period of lower where our expectations ought to be lower >> i do believe that if you look at that from the standpoint of evaluations. they would say three to five percent returning over the next five years we have something going on in the market it is the fact that stocks with no earnings are out performing with earning that does not make any sense at all. we see the company itself and insiders in those companies are stepping up their pace of selling today.

you start to see less bullishness out there. yes, lower your expectation and have lower equity metal than you carry. we do like bonds today and we'll weigh bonds over stocks. >> let me follow out there i assume its performance have been a little disappointing, i think probably for you most especially and for some shareholders this year and going back away. it is one of the explanations that the kind of stocks that you nut that fund are not getting rewarded while some of those stocks that have no earnings are. what's the problem in that fund? that's 100% right. values have way under performed over the last few years and we buy cheaper companies and earnings as i have mentioned this year have been particularly

beneficial as well we are not going to buy companies with earnings, never have or will that's been apart of what's been going on an upside down market. the good news is meredith have done a study, good funds, that's a good time to buy them. >> i hear value investor as well fchlt y if you find value in them. we do see careers topping 50 bucks for the first time since august do you see values in either of these two beaten down sectors. >> we do see a lot of values in terms of the retail sectors right now. there is still enough earnings potential there. the energy sector, we are not quite there yet. there are some attractive evaluations there. those companies really have not rebounded in terms of a

financial health standpoint since 2014 with that said, with the market up at the highs that we are right now we just passed an important point the other day. the market is over 270% since 2009 that's the second longest running expansion in modern u.s. history. the only one that went further was the dot-com level in the late 1990s we still think equities are a great place to be, they are attractive to bonds but you have to be selective and look for those value place and start to be defensive >> barry james, thank you for being with us and mike, thank you for you and thank you for letting me indulge >> thank you, guys >> here is what's coming up in "power lunch." what is he hoping to learn plus, if you want less of something, tax it. people talk to the san francisco's lawmaker pushing a

robot tax to save jobs we'll talk to the general manager of the cleveland indians, all that and much more indians, all that and much more coming up on "power lunch. with one phone call, he sets me up with tailored products and services. and when my advisor is focused on my tech, i can focus on my small business. ♪ a dell advisor can help you choose the right products with powerful intel® core™ processors. ♪

equifax's stock went down.

now, the ceo richard smith will testify on october 3rd, joining us first on cnbc is representative of the chairman of the community holding the hearing. good to have you here, sir >> what are you going to ask him? >> we'll ask him a series of questions, when did they find out and all the things have been out in the process frankly we know they admitted there is a software application and that seems to be the vulnerability. there is a as a ruvulnerability. we need to get the facts we are trying toget to the bottom of this matter. this is sort of mr. smith coming

to washington. it is not about running on the banks. >> is this a pretext or precursor to regulation and more regulation >> maybe i got a journalism degree and my job is to get to the policy first and put the consumers ahead of both. consumers are troubled by what happened here. they should be they're concerned of response and what's their future holds and what kind of protections do they need. monitoring does not sell f the r rip off. of course, answers about what we need to get of the executives that sold their stocks the company says they have no knowledge. boy, the timing sure did not look good. >> when you say maybe the prelude to more regulations, is it feasible that you come out of

these hearings that it is feasible and status quo prevails, that whatever environment exists right now that have a loud data reach to happen will continue to exist as it is. and almost every witness and every hearing says, be careful not to regulate in the space now, i understand that on the side of security side and when it comes to consumer notification and consumer information, we have to also think it through because in some cases, they don't want the words out so they have a problem so they can patch the hole otherwise hackers taking advantage of it. so it is a balance protecting other data >> i don't thicongressman, i heu saying did you see the report

argentina servers and the log in and passwords are both -- >> see, that's negligence. that's a human being being stupid >> right, these are the things, you got to get to the facts. if admin has your name and password and dealing incredible important and private financial information, consumers, that's just awful there is no question for that. >> the whole security contacting online of the security blog in case you want to follow up on this admin that came out yesterday. >> you cannot stop stupidity you can sure hold people accountable for it that's what we'll do we got to get to the facts and i want to know all the answers here and ask all the questions

and then we'll get to what the actions are going forward. you can throw a lot of piece of legislations out there to grab a headline i want to do it in a way where we get the answers first we know what we are dealing with >> another thing is a semiconductor cannot be bought any thoughts on that of your home state in oregon >> it is we had one of these issues before on a wind farm. they got shut down in my district and once it goes through the process as you may or may not know. they can tell members of congress with one exception. what was involved in the decision making. i have not had a chance to review that. i read the story this morning. i assume there is some national security concerns. >> did the city tried to lobby you? >> not to me personally. i don't know if it says something to the office or not but i have not seen anything

>> back to equifax for a second, did you know if your data is breached breached, basically, everybody's data have been breached. >> again, it was former intelligence with mike rogers, two types of companies of america of those what know they have been breached and those that don't know. the point here is, with something as sensitive as the amount and specificity of data and other organizations in hold, they should be so far in advance and under lining software, that's -- >> that's not right. >> we are talking on past breaches liking a target breach or yahoo breach. consumers send the information and keep that information and repackage and sell it to lenders. >> so should the rules governing

their security be much tighter than other companies with that data >> i believe they should be. the question is are there rules in place and they did not follow them the question is did stupidity prevailed here these are the e requesquestions to get answers to. if you put consumers first, that's my goal when we come out of this fact finding process, we'll move into whatever policies initiatiy init we need to have at that time there is tax reform happens that they're not going to allow that anymore when it comes to deductions if that's one of the provisions of tax reforms, you are going to vote for it? >> we'll have to look at the total tax package. many states have both sales tax and income tax what i want to know is what it is overall tax relief of the middle class, well, great jobs and will it jump gdp to 2% or

rather 2.5%. i want to look at the whole package. they have not released the details so i cannot do the evaluation we have companies stranded cash offshore >> lets look at it as a whole. everybody is closing loopholes until they discover it is there of the ones they use the key is to look at it overall and i want to see what it looks like >> thank you, congressman. good to have you here. >> good to be with you thank you. straight ahead, we'll take a look at equifax's stock while one analyst is keeping its name. tesla is pushing into semitrucks is this a game changer for stocks "power lunch" will be right back helping keep shoppers safe. this is a financial transaction secure from hacks and threats others can't see.

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by sensing cyber-attacks in near real time and automatically deploying countermeasures. keeping the world of business connected and protected. that's the power of and. some remains optimistic of equifax prospect. >> you just heard the congressman from oregon, people are ticked off and they're calling for an investigation they are investigating why are you still optimistic about equifax's equity process

>> yeah, thanks brian, happyto be here today. we are bullish on equifax. we think that equifax and trans union and experian, the three bureaus formed such an important, and restricting their business and deploying ability to deploy data that's unpalatable in terms of what it means on banking >> we don't know what's going to happen there is congressional testimony risk there is more headline risks why not factor that a little bit into your equity rating, given that we have no idea what's going to happen with this company? >> sure. i think the risk is what creates the opportunities. as you know, the stock is down a

lot and certainly, i adjusted my ratings last friday, for example, i could have accommodated that. i maybe be coming back a week later and changing my rating. my view is much of that risk is priced in. the risk that you mentioned, the headline risk and etcetera, what i consider is a tactical risk. i operate under the assumption that the under line model remains effective. >> why is that >> why is the under line business models are not affected there is not going to be any customers abandon equifax because of what happened >> no, i think there will be earnings impact. don't miss understand me that's quantifiable and we'll make an effort overtime to quantify that and the company will help us what you see in the big pull back in the stocks is the market s saying, if you can quantify the

earnings and cannot quantify the multiples you are willing to pay for those earnings, that's why you see the big pull back in the stocks i am much more confident today than i am what the earnings are going to do. that's why i stay bullish. >> i would imagine any of these credit agencies are from lenders. so i as a consumer, won't switch my business from equifax to a trans union because of this bridge it is the jp morgan to financial one and capital of the world that have to do that capital one financial is talking about this, the barkley's conference is just this week this is an issue that's front and center right now to all these ceos who want to serve the consumers well and the consumer

right now has no patience for equifax. >> sure, there are a couple of aspects considered it is reasonable to assume that business gets hurt significantly. when you think of the b to b business, i expect some shares i expect the other two bureaus to benefit a lot of the data that the lenders use are prioprietary. also, what lenders use many making new loan based on the data of all three bureaus. if you restrict your data or say i want trans union and experience, for example, you

impair your ability -- my point is that i think it is going to be relatively limited and man e manageab manageable >> quick answer, if you have confidence in the ceo and the board. >> i have all the confidence in the world, he's one of the best ceos that i have coverere >> why didn't they update things or why didn't they use an admin. >> i wish i had great answers for you, clearly mistakes were made and i think the stock market have taken the company a task for that. what do you do with the stocks today rather than considering why more something is done and done better? >> why would you have conference in the ceo after what seems to be an incredible breach of duty? >> yeah, it is a fair question i have known rick for over a decade i know him personally and i think highly of him and i think he's credible.

we all make mistakes if he bears the ultimate responsibility, the board will make a decision accordingly. as far as running the business day-to-day, she's made a lot more really good decisions and bad. >> how about john gambles? >> i don't know john as well as i do as a management team, i have a lot of confidence in this company and i think the market has taken a pound of flesh for the mistakes that were made and the question now is what do you do going forward and on balance, in i am a shareholder, i want these guys to stick around as they created a tremendous amount of value that lasts 10 plus years. >> do you believe that >> pait is easier to make money and less competitions. >> it is costly and difficult to compile and specialicommerciali

kind of data these companies have it is not to say there is no barrier in this business and no entrance and new possibility for new entrance here. the cost of materializing these kinds of databases necessitate fewer companies. >> we are done, guyguys? >> you see the little tick up at the end of the chart where is it? >> there it is >> it is ticking right up. will that up trend continue? >> who's he? he's green money, for spending today. makes it easy to tell you apart. that, and i am better looking. i heard that. when it's time to get organized for retirement, it's time to get voya.

. good morning everyone, i am sue herrera. in a news conference on capitol hill this morning, nancy splpeli says she trust president trump to shield 8,000 immigrants from being deported sthoo this this is about who we are as americans. it is pretty exciting so many people are rallying for our

dreamers >> the united nations appealing for massive help from nearly 40 o thousand muslims in myanmar. refugees continue to rise unl s frank vincent died on wednesday. he's at the age of 80 years old. no cause of death was given. he was 80 years old. that's the news update at this hour i will send it back to you, brian >> thank you oil is sneaking back to 50 bucks today. we' will it continue to rise in

arr will it last >> well, i think it can, the potential is there >> we could see a little bit of a pull back here, take a breather they ha whether you look at the xle and energy stock etf and also of its trend line of last december. it is broken up above its trend line what we need now is making a higher high to really signal for the change right now where the key juncture as a group, it will pull back and break above the recent highs. it is going to feed a lot of money into that group as we move into the end of the year what's interesting aaron is the group as a whole is now

forecasted to have this is no at miss print, 240% earnings in growth you say that's bad >> so at the beginning of the year, we expect 350% so yes, it is a big decline but overall, it is good that it is at least 240% have been stable in the past months and we have seen earnings, earnings have come massively down and reduced by one-third, they have been stable for the past month and a half along with oil prices the most important thing that the market have been stable. so for us looking at both the stability of the earnings as well as evaluations, this actually looks like a potential turn around point for the energy stocks >> that was our team

witnessing -- we expect 50 for more trading nation, go to our website >> the feel of ai and robotics come with huge advances. now san francisco politicians exploring one option to try to offset employment from automation and ai, our oaditi rs joining us here. >> lets turn to the robot talks. a lot of research are increasingly taking human jobs >> we are exploring pay row taxes which we have for companies for human jobs and extending that to robot jobs that humans currently do

>> and how will that help humans with getting jobs of the one that's displaced >> one of the issues that we are concerned is shrinking the middle class and certainly here in san francisco, a city where we'll have the fastest growing income gap in the country. i really fear that automation is going to be one of the biggest issues and further exerbating. whether it is reeducation or training or efforts like we have done in san francisco to make it for our residents or investing in jobs like poverty jobs like child care or senior support workers. >> you know what spr-- thanks so much for doing this, michelle

cu caruso cabrera what you want less you tax more and what you want more of, you tax less, right? then you get more employment. >> well, so the idea actually is not to diminish automation because automation actually is a good thing it will replace interest for humans and it can save lives and climate change if we don't act now to prepare for the future of work which is potentially mass of job displacements, humans from current work then you know that's a recipe for disaster and frankly it is no longer science fiction of what we have been talking about. it is now science reality. >> their industry dealing with legal shortages and agriculture for one example. why should farmers be penalized

for creating robots. >> but, it would help retrain those workers that were december placed from those jobs and help train them to other jobs that's taxable. >> jane kim showing us her thoughts >> back to you guys. >> thank you, ladies wh well, what do everyone think >> i don't know how you put payroll tax on robots. >> it does not earn wages, how do you set that tax? >> i can see where robots are taking a human jobs and they want to recoup >> i want to know how she would define robot >> yeah, i agree with that, too. >> wait, you agreed? >> first ever. >> all right, speaking of robotics what tesla moving into trucking can do for the stocks. >> i will talk to the man that put together of the team that

had the longest winning streak the cleveland indians joins us when "power lunch" returns and now, a word from our sponsors when markets are volatile, resist using too much leverage when volatility picks up, losses can mount quickly. >>

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. elon musk tweeting last night. what does tesla move into the truck manufacturing mean for the stock? your senior analyst, it is great to have you with us. >> you already got a whole rating on the stock and you like the stock longer terms it seems like you are concern of the ability of unroll and unveil all the autonomous features. is this going to be a distraction from the core business that tesla's in >> i think it is apart of the strategy here. you look at where the value

extracted from the transportation mark. so if you are able to automate that, there is a little savings there that we had. they're entering a -- what we are looking for is due to cycle and total cost of ownership. i do have concerns of our execution on our programs and that remains the same and along with ability to generate free cash flow. >> when you are saying a $25 billion of the market, does that how you view or a semitruck is sort of vaguely what tesla is talking about? >> we are looking at testimosem

north america. >> is that part of it? it felt like this was an announcement of delay rather than the announcement of the truck. >> i think the investors are not concerned about kind of rounding things on their time line. they're looking at incremental parks. they're a couple months late here is not a surprise at all given the magnitude of the task that's taken on and the fact that they got value gas station from introducing a products as well as some vehicles here i think it is a testament that this is a real market and this technology is where a big portion of the whole market is going to end up the next five or ten years. >> thank you >> cleveland indians have won 21 games. we'll talk about the great success and what's translating at the box office. ♪

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clevelaend cleveland indian, winning their 21st straight game they go for number 22 tonight in cleveland. i think they play the kansas

city royals. joining us from cleveland's progressive field is the indians general manager michael cher novemb chernoff congratulations not only on the wonderful win streak but a thrilling world series last year know it didn't turn out your way. have a good team you put it together nicely what crowd are you expecting tonight as they go to break the modern record? >> been great the past few days. we've seen huge support from our fan base, a real buzz in the city i think we had 4,000, 5,000 people walk up and buy tickets the past two days so it's really been exceptional the past few days as we've gotten into this streak. >> but you haven't sold out. >> you know what, there are tough structural conditions in cleveland that we recognize, especially as you get into the school year, it's september. weekdays it's a little bit tougher to get down to the ballpark there's been a huge buzz throughout the city. our ratings are on tv are way up, ratings on the radio, same thing and we've really seen a lot of support over the past

week as this streak has gone on. >> should we look at this, mike, it's brian sullivan, as mar of a sign that the ratings are up we know the trend of going to stadiums everywhere has been down do you take sort of solace in that >> look, we're going to -- we're up we war 28th out of 30 teams in attendance last year despite making it to game seven of the world series sow a hu awe a hu a huge increase in our ticketholder base this year. going to end up 22, 23 in the league, which for a relatively small city in a market that has struggled economically oef time, we feel like that's a lot of positive momentum and hope that continues to build throughout the postseason. >> are those some of the structural issues, anyonthen, y were talking about, size and the economy when it comes to trying to improve ticket sales? >> i think that's right. i mean, look, we are a relatively small market. compare us to a city like new york, or los angeles, or chicago, and there are just some things that we can't match up on in terms of population, and some

of the wealth of the population. we lost four or five fortune 500 companies over a 10 or 15-year span there are some things outside f o of our control, yet this is a fan base that's passionate and loyal about their teams. we had millions of people downtown for the cavs parade last year. northeast ohio is a really loyal place and supportive when their teams are doing well we're starting to see that now and that's when really fun for the whole city. >> couple of questions, do you still have seats available for tonight? >> that's a good question. i assume we do. hopefully we won't by game time. there's been a huge amount of walkup recently. >> tyler wants to go. >> brian and i will be on the next flight. >> you want to come? we'll get you out here we'll get you out here. >> section 140, row l, seats 9 and 10, $138 a piece. >> i can't guarantee that. we'll get you in here. >> i was down in atlanta a couple weeks ago for the opening of the her smercedes-benz stadi. the general manager of that

stadium said we're not competing against other stadiums, we are -- to get fans in -- we are competing to deliver an experience that attracts fans, number one, and we're competing against the 70-inch flat screen in their homes, which is kind of what you said. your tv ratings are way up, your radio ratings are way up people are inclined, aren't they, to stay home more because they have a very nice experience there. and they can go and get a beer out of their refrigerator at a lower price. >> i think for -- in large part, you're right you see that throughout the sports industry. at the same time, watching a baseball game in person is a special thing. >> agreed. >> i bonded with my dad watching mets and yankees games growing up he and i have this tradition of having a baseball catch once a month. we had it since when i was 6 years old to now there are things you can't recreate over tv that are so important to this game i think we see that in the city. >> right. >> despite the structural

conditions we face, there's something special about coming down to the ballpark and watching an exciting game. >> i wouldn't agree with you more your dad is exactly my age he works in the new york radio market can he still throw the ball well i hope you say no. i can't anymore. i'm out there throwing my son a football or baseball, i am hurting. >> put it this way, growing up, he would throw me batting practice at 45, 50 miles an hour he's a lefty he's probably throwing about the same now he's actually had great consistency. >> wow h all right. >> i'm not sure it ever that strong fast ball but has great consistency. still has a great arm. >> i lost consistency on my throw. >> i love the fact your pitcher tonight josh tomlin is 9-th9. if he wins tonight, a pitcher not a lot of people know about will go down in history. that's kind of cool. >> longest standing member of the organization, minor leaguer, major leaguer. >> wow. >> we drafted him, forget what year it was, 2006, he's been with the organization since.

really great story he's not a pitcher with excellent fast ball or excellent stuff by in means, he does a lot of it with heart and grit and so it's a really great story for the organization. >> we wish you the best of luck tonight against the royals michael, gm of the indians good luck. tan. >>hanks so much. check, please, is next. are you ok? what happened? dad kinda walked into my swing. huh? don't you mean dad kind of ruined our hawaii fund? i thud go to the thothpital. there goes the airfair. i don't think health insurance will cover all... of that. buth my fathe! without that cash from - aflac! - we might have to choose between hawaii or your face. hawaii! what? haha...hawaii! you might have less coverage than you think. visit aflac.com and keep your lifestyle healthy.

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obviously that's bots, okay? and check this out. >> not really. hung ary people. >> they're already on ebay for $400 to $500 to $999 that's capitalism, michelle. >> what do i get if i buy that pass unlimited pasta. unlimited pasta. thanks for watching "power lunch. ." "closing bell" starts now. i can always eat unlimited pasta. welcome to "the closing bell," sarah eisen for kelly evansst >> i'm bill griffeth >> ceo says subscriber losses are actually a good thing for his business he says he is not afraid of cord cutting. we'll find out why coming up. and one of the most buzzed about ipos this year, company going public today that has no assets could that be a sign of frothd in the market? we'll discuss what it means. >> up 3.5%