>> the definition of long term has shrunk down from what it was. >> we have 15 seconds. >> to what, to leave >> paydirt >> raytheon, it's going higher >> jpmorgan is still cheaper than bank of america >> emerson >> great stuff thanks for being here. "power lunch" starts now welcome to "power lunch. here is what is on the menu. president trump lunching right now with the veep and the senate majority leader mitch mcconnell with whom he has had some collisions let us put it mildly. the president sounding off today on soaring drug prices, the iran deal and more. a live report from d.c. is minutes away major averages breaking records again. 23,000 in the crosshairs for the dow, this on a day when apple gets another big bullish call. where to put your money to work in this seemingly unstoppable

rally straight ahead and buying homes with bitcoin. sound crazy to you it's actually happening in some major real estate markets. we'll tell you how it works and the potential pitfalls right now on "power lunch. >> as tyler said, new record highs. we are now on dow 23,000 watch we were about 55 minutes away from it earlier, but we've backed off just a bit. here is something random but interesting. the major averages have gone up in both september and october in only five of the last 20 years most recently, four years ago. and we're on track do that this year what is moving right now etf tracking tech is on the move netflix hitting new all-time highs ahead of its earnings later on today, but nordstrom following 6% more on that in a few minutes.

president trump having lunch right now with vice president mike pence and the senate majority leader mitch mcconnell. earlier he had a cab kninet meeting, comments he made sending stocks down a bit especially health care companies as he lambasted drug companies.e white house. >> reporter: he was dregtsly critical of drug companies and also insurance companies last week he announced that he would stop the so-called csr payments which are made to insurance companies to subsidize health care for low income people the president portraying that very much as a political payoff. here's what he said. >> you'll see numbers that anybody -- if you invested in those stocks, you'd be extremely happy. and they have given them a total gift they have given them -- you could almost go at a payoff and it's a disgrace. and that money goes to the

insurance companies. we want to take care of poor people >> reporter: and as you say, the president has been feuding with some republican senators up on capitol hill and now he's having lunch with mitch mcconnell the republican leader he was asked about republican leadership up on capitol hill and the president said that question are nolt getting the jo done and then he paused and said no, they are not getting the job done i'm not going to take the blame. here's what he said about republicans on capitol hill. >> there are some republicans frankly that should be ashamed of themselves, but most of them i'll tell you what, i know the republican senators. most are really, really great people that want to work hard and they want to do a great thing for the american public. but you have a few that really disappointed us. >> reporter: on mitch mcconnell the president said earlier this year was one of the people who disappointed him and now they're having lunch we're waiting to see whether we will see them appear together in sort of a fence mending exercise here at the white house. the president hinted that that

might happen we haven't seen anything officially added to the schedule yet, but we're on high alert for that, whether it's sort of a mini news conference or photo-op or whatever. we'll be there to cover it. >> thank you very much the president also talking about drug prices, which really hammered a lot of the stocks look at the xlv, a turn lower intra day. meg tirrell joining us with more >> a lot of the positive performance in the drug sector year to date has been an alleviation of fierce of federal mumpt movement on drug prices and now trump making familiar comments including the phrase which he originally used in january saying that the industry in terms of its pricing is getting away with murder listen to what he said >> the prescription drug prices are out of control the drug prices have gone through the roof and if you look at the same exact drug by the the same exact coma in the same box and sold

someplace else, sometimes it's a fraction of what we pay in this country. meaning as usual the world is taking advantage of the united states they are setting prices in other countries and we're not. the drug companies frankly are getting away with murder about that. >> so trump focusing in on the drug companies, but also the i have deny shal betweifferential pays and what other countries pay. he's sort of implying that he will try to get other countries to pay more for drugs and for the u.s. to pay less there is less of an imbalance. >> how do you do that? >> we don't know how that could be done. is that some sort of trade deal? it's un clear. >> the proponents of trying to get other countries to not set price controls have argued through the wto and we don't and as a result we pay a lot more for r and d. he's never very precise when he speaks about certain issues.

what struck me is i think in the past we've heard him suggest he would try to get other countries to pay more. here he said other -- they are setting prices in other countries and we are not as if maybe he thinks that we should and -- >> that would be the thing that the industry is really afraid of, the federal government having the ability to negotiate through medicare on drug prices is what investors worry a lot about, price control in the united states. and the senate health committee tonl has a hearing at 10:00 a.m. looking at drug prices we're seeing that headline risk coming today from the president again. >> but he also slammed the insurance companies and as we pointed out last week, he is right about the stock market gains. united health is up 480% since obamacare was passed in march of 2010 cigna up 413%. and aetna up 380%, something like that. the numbers are on my twitter account. the dow was up 111% in that same time he is going after the stock

prices and these gains have been out sized. >> it's interesting, there is so much of uncertainty for the insurance industry around obamacare before it was passed and then of course once they have more than certainty with the bill this place, they did take off >> insurers loved it and they bought in very early on obamacare because they saw number one the payments that the government was going to make to help with premiums for low income, but it was also a huge new market of new customers who would come in and have to -- have to -- buy insurance so the stocks go up. >> and there was some thought that for drug companies as well they would get more insured customers for their products but they haven't been as affected by obamacare. >> they haven't been helped as much because what we discovered through the whole process was that individuals were going to pick up higher deductibles and

shoulder a lot of the pricing. >> go back to 2009 and the president famously announced the plan where the drug companies were going to make i think it was -- my numbers may be fuzzy here $80 billion payment. reran the numbers at the time and realized the $80 billion which was heralded as a big win from the pharmaceutical companies would indeed be paid back through the pricing structure in i think it was a year or two. in other words, it was a darn good deal for big phrma, not for big government >> and when you're talking about legislation around health care, the idea always comes up of whether medicare should have the power to negotiate prices. and when the president keeps talking about this, even though there isn't support in congress that we've seen for this, republicans don't want to give medicare that power, that is the fear that is weighing on these stocks >> goes all the way back to the hillary clinton tweet, right both sides of the aisle. >> absolutely. so that is not good for

investors in these stocks. >> thanks, meg health care play be falling, but technology continues to shine trading above it's all time record close. and one of the biggest at 17 year high. so the question is this, are there still opportunities in tech or should you be looking either where in the market for more, let's bring in portfolio manager at kree ton vance. and also senior portfolio manager at u.s. bank private wealth management. lou, you just heard our conversation about health care guess what the administration and congress and others in d.c. have been starting to rattle the cage of big tech in particular facebook, which is your single biggest holding in one of your funds amazon and google are second and third. as a fund manager, do you worry about the regulatory eye be turned to big tech and maybe selling some of the stock because of it? >> well, look, in-ov think over

short run it does weigh a sentiment, but i think we haven't seen any credible proposals for what they could do as far as regulation goes for a name like facebook, google or amazon to make a determination that that could potentially harm their fundamentals so that all being said, we think there is quite a bit of potential regulation priced into these stocks google, facebook and to some degree amazon still trade at very reasonable valuations relative to their long term growth expectations. >> i was going to say, because -- you sort of followed up already, but i'll dig in deeper these are your three biggest holdings you made a lot of money on them. your clients have made a lot of money. valuations you think are still okay, but make the case as to why the regulatory risk is youth weighed by the fundamental growth and earnings opportunity they provide >> well, like i said it's hard to quantify based on imperfect information as to what potential

regulatory obstacles these companies could entail but at the end of the day like i said, we think fundamentals over the long term win out over time and again we think these companies particularly a name like facebook can grow in excess of 30% over the next three, four, five years and it still trades at just a slight premium on to the market. >> eric, what do you think, health care under fire, technology not under fire but being sniffed around perhaps somebody is lighting the match do these concern you do you stay away from them as a fund manager because of that >> you know, we still like the sectors buy and large. but you're right to point out that a lot of rhetoric around potential regulation is increasing risk and also expectations we've seen as a result of the success expectations have become somewhat elevated coming into earnings season. our perspective however is that

we continue to be attracted to those companies that have the opportunity to grow faster than their peer group, than other industri industries so technology continues to be an area that provides opportunity >> we have a lot of breaking news we'll have to leave it there we'll get you back on again soon so big meeting taking place between president trump and vice president mike pence and mitch mcconnell. let's get the latest on the agenda from white house correspondent for the "new york times. he joining us from washington. i don't know whether to start with the lunch with mitch mcconnell or to start with what seems to be a new push on drug prices today if you heard what president trump said about drug prices let's start with the lunch with mitch mcconnell. these guys going to patch things up and get tax reform or tax cuts passed? >> it will be a pretty crowded room what with both sides

bringing in food tasters, you know this is a very odd couple. and they began as sort of an odd couple before their recent flap, but it's continuing. look, i don't think that they will be talking anything specifically ledggislativlegisl. you heard the president early in the show sort of blaming congress for all sorts of things the truth of the matter is, and this is not my opinion, this is reported out, the president is as ill informed on legislative matters as any modern president. he didn't care about the details. he has endorsed three wildly variant health care bills for instance he does not get involved in the beginning stages on legislative matters. tax reform somewhat different sort of situation because he involved with gary cohn and a lot of resentment from mitch mcconnell stems from the fact that believes trump to be wildly unprepared so what they have to do is establish at least a predicate

for them to communicate through a back channel because president trump will keep whacking mcconnell in public. >> is it really as poisonous as that >> yes these guys don't like each other. i harken back to the infamous barack obama response at a press conference when someone asked him why don't you have a beer with mitch mcconnell and obama said why don't you have a beer with mitch mcconnell that relationship is even worse under donald trump culturally they don't have anything in common and much more importantly, donald trump is an insurgent. he ran against these folks he knocked off 15 of them in the primaries. he sees mitch mcconnell as that kind of guy. and one other thing, having backed luther strange in the alabama senate race and remember he was a mcconnell favorite, trump learned a lesson he had already known. and that is you back someone with the establishment and you lose, you get labeled an

establishment person so trump is moving now in the opposite direction explains why he is spending so much time with rand paul >> doesn't mitch mcconnell need a win here didn't t the midterms are coming up and they have to prove they can get something done the owoone thing donald trump ue know the moths about would be taxes at this points didn't it -- isn't it their burden to do something regardless of where the president is on the issue? >> absolutely. and you already lindsey graham say what everybody has been saying privately, this administration and the republican majority may be dead if they are not able to pass tax reform but remember, donald trump lives in 15 to 20 minute increments. he is a survivor he moves from crisis to crisis s mathe main thing donald trump cares about even more than his agenda is survival and making sure his base is haech. and in terms of establishing a political identity getting some fire behind him, keeping his base, attacking mitch mcconnell

works, even if it risks his larger agenda items including tax reform >> towards the beginning you said this is not my opinion, this is what i'm reporting out based on -- i'm wondering if you're emphasizing that because your newspaper got hit hard by the president over the weekend what is it like and what your thoughts as you see him slamming the "new york times" and peter baker's sorry? >> he didn't criticize it for any inaccuracies because i think peter provided an excellent analysis and i always make that comment in terms of stuff bolstered by fact because a lot of times i think when we assert -- due analysis on our twitter or story, they say you are biased in no, when i say for instance that this is the least informed president legislatively, this is based on dozens of interviews with legislators go up to capitol hill behind me right now and go talk to them.

that is precisely what they would tell you so i think part of what is going on right now is you have an administration that is on the defensive, they have a tried and true method of attacking the press, and this is i think another version of that. i would put our record as a newspaper in terms of our fact allity and our correcting errors when we make them up against anyone including the white house. >> got it. glenn, thanks so much. glenn thrush of the "new york times. two retail stocks hitting the skids. we'll tell you what is sinking sears and nordstrom. and we are 69 days 10 thundershower, 42 minutes and 42 seconds away from christmas. will the holiday season be a shiny new toy or a lunch of coal where's gary? 'saved money on motorcycle insurance with geico. goin' up the country. later, gary' i have a motorcycle!

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welcome back we have a news alert on allergen a federal judge has invalidated the patent surrounding their big eye drug down now about 4.75% on this news this was a big story, this drug is their second biggest product bringing in more than a billion dollars in annual revenue. this alsoed a tractsed attracte attention because these are the same patents on which they partnered with a native tribe. so garnering a lot of attention and allergen sinking as the federal court has invalidated

these atents we'll continue following this. two big retail names in the news sears and nordstrom falling sharply. courtney ray began eagan is hero explain why. >> nordstrom is saying that the family members have notified the board that they are suspending the possibility of going private until after the hole gaidays at least. but that is pulling shares lower. it's been widely reported that the name sake founding family has struggled to get the financing help it needs to go private and retain control of the company in a structure that is amenable to all parties nordstrom announced it was exploring the idea of a buyout in june and is working with banks to finance a deal, but raising debt has been proven to be troublesome

there is speculation that this has always been a pretty delicate deal if it was even possible at all. >> and not the only news in retail also a sears holdings board member has resigned, but not just your average board member >> that's right. this isn't just any board member bruce berkowtiz is the chief investment officer of fair home capital management, the second largest sears holding shareholder behind the ceo so berkowtiz is leaving after less than two years. and no reason given yet. fairholme holds almost 27% the website calls sears a real estate bow me meth many think it has limited lifetime yet 37 and berkowtiz is

also the second biggest shareholder in sears canada as well and last week that actually had to file for liquidationafter a failed attempt to save it. >> what does he do with all his holdings in. >> we don't know we have to wait until the big filings come in. but as of right now, he still has them and he is steadily building the shares even when he wasn't aboard member so we don't know and he has been reportedly a little bit more active, if you will, over the course of the last several years so it's possible some decision was made he wasn't happy with. >> looking for a transformational a transaction >> and shares are down, but we should note that the float is so, so small because most of this is owned by institutional money. let's take a look at bitcoin. nearly $5700 if you had 100 of them, you could buy yourself a pretty decent house because now you can actually use bitcoin to

buy a house. we'll explain how that works and harvey weinstein's company getting a little bit of a lifeline we'll tell you which billionaire is putting his money into that scdapluestioanl-agd ud "volatile markets." something we all think about as we head into retirement. it's why brighthouse financial is committed to help protect what you've earned and ensure it lasts. introducing shield annuities, a line of products that allow you to take advantage of growth opportunities. while maintaining a level of protection in down markets. so you can head into retirement with confidence. talk with your advisor about shield annuities from brighthouse financial established by metlife. throughout my career, i've been fortunate enough to travel to many interesting places. i've always wanted to create those experiences for others. with my advisor's help along the way, it's finally my turn to be the host.

when you have the right financial advisor, life can be brilliant. ameriprise thank you so much. thank you! so we're a go? yes! we got a yes! what does that mean for purchasing? purchase. let's do this. got it. book the flights! hai! si! si! ya! ya! ya! what does that mean for us? we can get stuff. what's it mean for shipping? ship the goods. you're a go! you got the green light.

that means go! oh, yeah. start saying yes to your company's best ideas. we're gonna hit our launch date! (scream) thank you! goodbye! let us help with money and know-how, so you can get business done. american express open. so you can get business done. mikboth served in the navy.s, i do outrank my husband, not just being in the military, but at home. she thinks she's the boss. she only had me by one grade. we bought our first home together in 2010. his family had used another insurance product but i was like well i've had usaa for a while, why don't we call and check the rates? it was an instant savings and i should've changed a long time ago. there's no point in looking elsewhere really. we're the tenneys and we're usaa members for life. usaa. get your insurance quote today. we've done a lot of stories over the years about millennials not buying houses, but maybe this next one is a way to get them into the housing market you can buy a house, yes, you can, with bitcoin.

diana olick joining us now >> reporter: yes, you can. sellers in today's tough real estate market want to stay competitive and one way is to accept bitcoin ite its popularity is soaring, so why not. it's happening in lower manhattan where one developer is converting an old rental building into new condos he has several potential buyers who want to pay in bitcoin and he thinks owning bitcoin himself is not a bad idea. he also sees the advantage of accepting the currency >> it's a price point building in the 700 to $1.5 million range. there is not a lot of that inventory in the marketplace and you know, you try to always work and get one extra edge over someone else and we think that crypto currency and offering that to our buyers is certainly an edge. >> reporter: for sellers who don't want bitcoin, there is

bitpay a payment portal that will convert the currency. that is how the deal was done over the summer in austin, texas. >> we had a brief amount of conversation about that, but bit coin on oig on some level is new to most consumers, so accepting bitcoin was not something that they wanted do so we found a solution which was an exchange company to convert that to dollars. >> reporter: so far no deals have been done with a mortgage, but that is surely on the more rye-on-. if you are converting bitcoin, according to tax attorneys, that is a sale and would incur capital gains tax. there is more about this online. >> that is if you convert to cash currency or just if you exchange it? >> reporter: if you're converting it, right if you convert it through bit dlts p pay into dollars which is what the seldler waler wants, you are

actually selling the bitcoin so you would incur taxes on the capital gains. but if you are tru you are trand there is no i will a, you wousa tax. but it's not entirely clear, of course if you put a mortgage into that, no one had an answer. >> bitcoin is largely anonymous. so you have to sign a billion documents to get a mortgage. i guess do this, you are eliminating your cloak of anonymity in the exbitcoin worl. >> reporter: yes, although in this case the buyer who was a tech entrepreneur in austin would not speak to us, would not allow us to show his house he didn't want anyone to know that he had done this. he did allow soth sotheby's to talk about the deal, though. well, halloween is the next holiday on the calendar, but dare i say there are just 70 nights left before christmas

pricewaterhouse coopers out with their 2017 holiday shopping trends and they say consumers are in the driver's seat this holiday season joining us is steve babahr, u.s. consumer mar gkets leader. good to have you here. what is your forecast for this holiday season for retailing >> we expect consumers to spend 6% more overall this holiday season but that is both in store, online and travel and entertainment. consumers are in a very festive mood with unemployment at lows, we're seeing significant wage growth and most of all consume are confidence is very high. >> are you feeling festive >> no. i'm done shopping. >> let me ask you about black friday is it important as it used to be >> it is simply not. it's really just become another day. i wouldn't go as far as saying black friday is dead, but it is certainly not as relevant as it

used to be >> we do a lot of coverage of that >> all the live shots. >> oh, yeah. >> macy's up early >> but is there any correlation that you've done between the stock market and consumer spending is there really a wealth effect? >> what is fascinating in our research, the majority of those who will spend more were the higher wage earners especially over $100,000. so we really do believe there is a market effect. those households that are earning less than $60,000 actually told us they will spend just a little bit less than they did last year. so that tells me that the stock market clearly has an effect >> where does a 6% gain in sales fall historically, that is gang busters, that is average, that is -- what >> it's really good and it's certainly going to be the best since the great recession. >> we almost never see a decline year after year except for maybe 2009, 2010

>> you can expect 2% or 3% in any griffin yeaiven year. but 6% tells us that it will be a great holiday for the consumer >> what do they want to buy? >> it varies you could want to buy things like supreme if you are a millennial- >> did you just understand that? >> they are street wear brands that young again sooers have tolds are really good. >> supreme is the hottest brand in the united states right now about that. >> that's right. >> i feel left out, too. >> so are people going -- i assume people are still going to go to stores 9 out of 10 people will still do something in stores. but relatively speaking, are they still going to spend as much in stores or is the share of wallet going increasingly online >> yes, the share of wallet is increasingly going online.

we expect online to grow somewhere between 11% and 15% this year. so if overall spend is going to be around 6%, that tells you the majority of the growth is going online >> in fact that would even imply not that it would be down in store, but certainly not a big gain >> small share for sure. >> but i'm a believer in the store. and the retail store is not dead i like to say that we have a -- we don't have a retail problem, we have a retailer problem and the retailers that execute well in store do an extra ordinary job people are waiting inside to go in an apple store. if you think about sephora or you will tak ulta >> it says millennial dads will spend far more than any other consumers. that is dad who on are millennial age or the father of millennials? >> dads who are of millennial

age will spend more than anybody else >> more than 6%, 8%? >> yeah. above the average. i don't know the number. >> why >> because they got young kids and they are probably relatively newly married. >> that's right. >> so you keep everybody happy one day a year >> it was the one finding from our report that was really interesting, a look at the millennial dads. >> they don't spend any money on razors >> beard trimmer i think would be popular all right. good a big named billionaire investing in harvey weinstein's company. it is hedge funds meets hollywood coming up. plus he is set to become the youngest to lead a european country in the modern era. that story and the nation next

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. i'm sue herera at least three people are dead in connection with ireland's worst storm in half a century. ophelia which is now a tropical storm battering the country's coast today.

a federal judge convicting rahiahmad rahimi of planting bos in manhattan including one that injured 30 people. it happened last september in the chelsea neighborhood he was convicted on all charges and faces a life sentence. army sergeant bowe bergdahl pleading guilty to charges that he abandoned his post in afghanistan in 2009 in an effort to draw attention to problems with his unit. a short time later, he was captured by the taliban. he was freed five years later in change for five taliban prisoners. and on a lighter note, take a look at this, paddington bear putting his best paw forward asking the duchess of cambridge for a dance at the rail station. kate dancing with the storybook character at a charity event the duchess is pregnant and fighting accuse morning sickness that is the news update this hour back to you. >> didn't throw up there >> there you go.

take a look at some of today's movers retailers in the red, macy's, ulsa, foot locker kroger all down apple getting an upgrade at key huan bank and also on the move, micron, applied materials and texas instruments. the harvey weinstein scandal continues to grow and become more disturbing by the day now nbc news reporting that the new york police department is investigating what it calls two credible allegations of sexual assault against him. all this amid reports that the weinstein company may now be sold president trump's closest and long time adviser barrakc's firm could buy some or all of the weinstein company assets we have all sides of the story covered. leslie, i want to start with you on the business side is it seemingly apparent that the weinstein company will no

longer run by or of a fill yatesed with harvey weinstein will go away all together, maybe wrapped into colony capital? >> unclear at this stage exactly what they will do with the asset, but this isn't tom barrack's first time investing in something that the weinstein brothers have owned and created. if you recall, he bought miramax back in 2010 sold it for a profit so it could be that he is looking to do something similar with the weinstein company at this stage of course the weinstein company is in a lot different position than miramax was, but in terms of what he will do with it still rye mains to be seen >> which is a political irony that one of trump's most prominent on cnbc frequently supporters is buying the weinstein company potentially. >> just shows you how small of a world this really is but you go back and you look at

the deals that he's done, he has done deals with steve mnuchin before -- >> barrack has. >> barrack has money sees no political party. >> just green. >> julia, let's get to the other side the more disturbing side of this story. and it seems daily if not hourly by the way there is a new allegation against harvey weinstein. now the new york police department apparently looking into things that it calls credible sexual assault claims what is the latest on harvey weinstein the man. >> reporter: well, you're right, every hour it seems like there are more allegations either of sexual harassment, women tweeting that out, there is the #me too campaign, women taking to social media to share that they too have been sexually harassed over the course of their lifetime of course that #me too campaign isn't just about harvey weinstein, but it speaks to the fact this story has gone mainstream in a way that many

may have never expected about that now in terms of those allegations against harvey weinstein, there are reports now that the new york police department is looking into two new cases of sexual assault and those are in addition to an already reported case -- allegation of sexual assault that the new york police department looked into and then was never followed up on and it was then dropped. so the number of issues here is kind of mind boggling. but it's worth noting that the story is not over yet because tomorrow the weinstein company is scheduled to have another board meeting and harvey weinstein is expected to call in and contest the terms of which he have fired from the company >> what are you appearing with hearing about the terms of a sale >> reporter: this deal with colony capital would be a savior for the weinstein company. the assets are at this point the most valuable asset is the television business and in particular "project runway" and

all of its spinoffs. just to give you a sense, "project runway" generated between $20 million and $30 million last year in revenue of course not all that goes to the weinstein company. it is split off with the various owners but it does speak to sort of how valuable that tv asset is. when it comes to the assets, they have been trying to sell the tv part of the business since 2004 and they have not been able to find a buyer. there are also concerns about the movie side of the business, how powerful it could be now that everyone is trying to distance themselves from harvey weinstein. so a lot of questions about the movies coming up, be current war was expected to be an oscar contender, now you have the stars trying to distance themselves from weinstein. so there are still assets there. the value of the tv business, movie business, but still big questions remain >> certainly thanks, ladies he's 31 years old and he's likely to become the youngest leader of a country in europe. so bastion kurz is head of the

right wing austrian peoples party which finished first in parliamentary elections yesterday. this now paves the way for him to become chancellor and he will likely form a coalition with another right wing party he focused his campaign on him grace, capping payments to refugees and barring immigrants from receiving benefits unthey lived there for five years netherlands, france and germany all saw big increases in the representation by right wing parties in their recent elections, this is the first election where the right won enough to actually run the country. big shift in europe because of merkel oig merkel's decision to allow in all those immigrants >> 31, wow >> i brought up joan of arc, og but that was not the modern era. now to rick santelli >> it looks like a quiet day,

bond market trying to realign some few basis points here and there, but ultimately it's in sort of a range. a range we've seen before. but not entirely look at intra days of two and five they are each up several basis points, but the long he said of the end of the market changed. let's look at the yield curve. today it is trading in a spot should it close there and it's a close call with mid october closes, could be the lowest close, tightest spread since august of 2016 now let's take 5s versus 30s this is fascinating. we are now at the flattest it's been since thanksgiving of 2007. i'm not preaching that there is some magic message of a curve getting flatter, but one thing we know for sure, whatever the message is, the flatter and potentially inverted yield curves always give central bankers and short term funding issues are never a good thing

for the economy. michelle, back to you. >> oh, no they're not. thank you, rickster. apple shares are higher today. our next guest says items ns nee of phones will push to being be the first ever trillion dollar company. we'll have much more on apple and the markets when "power lunch" returns

president trump speaking in the rose garden. let's take a look. >> the relationship is very good we're fighting for the same thing, we're fighting for lower taxes, big tax cuts. the biggest tax cuts in the history of our nation. we're fighting for tax reform as part of that we are getting close to health care it will come up in the early to mid part of next year. we'll have a vote, i think we already have the votes we feel confident that we have the votes. we pretty much know what the plan is. i believe republicans and

democrats are as we speak working together very hard right now to do an intermediate plan, a short term plan because obamacare is a disaster. the rates have gone up, premiums have gone up the deductibles somewhere go s through the roof youdeductibles, unless you really have a problem, you're not going to be able to use them so we have been working together long and hard. we think we are in good shape for the budget we hope and we hope to be in good shape with again the largest tax cuts ever passed in this country it will spur business. you look at other countries what they have done and we're competing with other countries china is at 15%, when i hear that ireland will be reducing their corporate rates down to 8% from 12%, but you have other countries also reducing, we can't be at 35% and think we'll remain competitive in terms of companies and in terms of -- so

we can't be at 35% to see he a man that i've had a lot of respect for, james lee whitt, of the clinton administration, head of fema, and i've had a lot of respect for, james lee whitt of the clinton administration, head of fema, he gave us an a-plus i just see it just came out. and i've always had respect for him. he gave us -- he's the fema director of the clinton administration gave us an a-plus for how we responded to the hurricane aftermath, all of the hurricanes and that includes puerto rico. so i just want to thank mr. whitt, wherever you may be now, wherever you may be listening, i just want to say i very much appreciate it because that took it out of the world of politics in that he was with the clinton administration and i'm sure remains loyal to the clinton administration i hope he does so just to finish off my

relationship with this gentleman is outstanding has beaeeen outstanding. we are working hard to get the tax cuts we will continue to work hard to get the health care completed. i'm going to be surprising some people with people with an econ development bill later on. i want to focus on tax cuts and other things right now one of the unspoken elements that we discussed is yes, we got a great justice, justice gorsuch in the united states supreme court. he will be outstanding for many years. something that people are not talking about is how many judges we had approved whether it is the court of appeal or circuit judges or the district judges. we have tremendous right now under review, the democrats are holding them up beyond anything beyond comprehension

frankly, they are terrible policy terrible policy. and perhaps, they're not good politicians but they are good at obstruction. i looked at some of these numbers between the judges and i want to say that we'll set records in terms of the numbers of judges. if you read the wall street journal, i have to give them a lit buy of a -- i won't mention names, who's really been a fair person, wrote an article and editorial in a sense saying how well we are doing and judges and appointments it is one of the big unsung thing things the judge's story is an untold story and nobody wants to talk about it when you think about that has consequences 40 years out of the age of the judge.

40 years out so numerous have been approved many years on the pipeline the level of quality is extraordinary and i wanted to say that -- we are getting great reviews of the people and there is never been -- with that, i would like to have to say a few words, if you would like to do a little questions and answers, we can do that also >> thank you very much mr. president. toipt under score what the president said, we have the same agenda we talk frequently, we don't give you a read out when we have a conversation we talk about the issues that's before us and passing the budget which enables tax reform and

reductions come next. of course, the senate's unique role, it seems to me a lot of people forget, we are in the personnel business there are 1200 of the president's nomination to send the single most significant thing this president has done is the appointment of neil gorsuch to the supreme court it is not just the supreme court. there is a lot of vacancies and as the president indicated, young conservative and when we say conservative of a judge, what we are talking about is the kind of people that the president appoints to the court believes the role of the judge is try to rule based on what the

law says not what they hope the outcome will be. justice scalise as to say the judge is not occasionally unhappy with a conclusion reached. he's not a very good judge judges don't wear red. they don't wear blue, they wear black. those are the kinds of people that the president is sending u to the senate to be confirmed. >> he will be on the bench for a long time. legislatively, the top priorities is tax reduction and i think what the president and i would both like to say to you today, contrary of what some of you may have reported, we are together totally on this agenda to move america forward.

>> mr. president -- speaker of the house paul ryan says he wanted to be done by interest here [ inaudible would you be okay if tax reform would not pass until next year instead of this year >> well, i would like to see it be done this year, john. >> so we won't go a step further if we get it done, it is a great achievement. >> it took years for the administration to get taxes done i have been here for nine months i can say the same thing for healthcare, you look at clinton's, they were not able to get it done and president obama after a long period of time was able to finally push it through but pushing through something that's now failed badly.

>> again, we are meeting republicans and democrats are meeting right now and they are working something special. i have to tell you, i really believe that we have a good chance and getting the taxes done hopefully fairly long before the end of the year that's what we would like to say. >> let me add what the president says the goal is to get it done this time of the year obamacare was signed march of year two we are going get this job done and the goal is to get it done by the end of the year >> mr. president -- >> just to finish up, we are in the midst of nine months so we could have a long way to go but that's okay.

yes. do you still think that in. >> lets go to the second part of your question with me. again, we have been doing healthcare for really seven months and probably six months if you think about it. we started in a total of six months and others are two and a half years and much more than that this man is going to get it done and he can get it done long before anybody else. i think it is going to be a great healthcare as far as tom marino, he was an early supporter of mine, the great state of pennsylvania, he's a great guy, and i did see the report we'll look into it and take it seriously. we'll have major announcement next week on the drug crisis and on the opioid massive problem. and i want to get that absolutely right frankly the world has a drug problem. the world has a drug problem

we have it and we are going to do something about it. i will have major announcement on the problem next week we'll be looking into it >> thank you mr. president, i would like to ask you do the support the plan of people in your term of administration such as bannon? >> we have a very good relationship with bannon he's been a friend of mine for a long time and i like him a lot steve is doing what he thinks is the right thing. frankly, they are great people but what mitch will tell you is that maybe with the exception of a few and that's a small few i have a fantastic relationship with the people in the senate and the people in congress our house of representatives, i have a great relationship with political people if you read the paper, i am like

one island and they're like the others, well, it is not the way it is. we have a fantastic relationship, i am friends with most of them i don't think anybody could have much of a higher percentage, i am friends of most of them and i like and respect most of them. just so you understand, the republican party is very, very unified. when we get things aprov approv have to go through hell because we have no democratic support. massive tax cuts, we may not get any democratic votes we may get three or four we may get no democrats support and that's because they are obstructionists and they want us to do badly and that's not going to happen. go ahead

[ inaudible >> we'll be looking at that closely. well, he's a good man and i have not spoken to him and i will speak to him and i will make the determination. if i think it is 1% negative to doing what we want to do, i will make a change. yes? >> mr. mcconnell -- >> yes, wait, one question [ inaudible >> we are going to be doing that next week. >> mr. president -- by the way, you know that's a big step, by the way, people have no understanding of what you just said that's a very, very big statement. it is a very important step and to get to that step, a lot of work has to be done and it is time consuming work, we'll be

doing it next week, okay >> did you discuss the comments that bannon made of this time? what did you make of the republican party >> you know the goal is to win the electorate in november >> back in 2012 and 2010, we nominated several candidates, they're not in the senate. >> the reason for that is because they were not able to appeal to a broader electorate my goal is to keep us in the majority the way you do that is not co complicated. winners make the policies and

losers go home >> we took the majority in the senate we had one mission in 2016 we kept the majority of the senate our operating approach will be to support our incumbent and help nominate people who could win in november. that's my approach and that's the way you keep a governing majority >> mr. president, mr. president! [ inaudible >> what spectifically do you wat to see from those companies. >> the insurance companies made a fortune from obamacare and what i did with the cuts at the end which we are going of hundreds and billions of dollars that's going right into the

pockets of insurance companies i am happy of what i did because of that, people are talking now and republicans are talking to democrats for a short term taking care of what we'll call healthcare so people can have good healthcare without big spites >> every year the massive spites to obamacare has been ridiculous >> i did not speak about this today. a priority of mine and you know this is coming up will be the cost of prescription drugs we'll get it way down, way down. those drug companies, you have the insurance company in one hand you have the drug companies and they contribute massive amounts of money to political people >> maybe to you, they contribute massive amounts of money me, i am not interested in their money. i don't need thoeir money. you have prescription drugs and

you go to england and various places as canada and the same exact pills is a tiny fraction of what it costs in the united states we are going to get drug prices way down because the world is taken advantage of us. the world is taken advantage of us when that happens so that's going to be. >> reporter: important >> mr. president -- mr. president. >> about 7%, how do you cut-off those payments >> that's what we are looking to do we want to get it down so people can have affordable healthcare you look at some state of 116% in other states of 15% or 70% up those are some of the states that are doing better. obamacare is a wreck and a mess

and destroying lives we want to get it in those states, the states that i did so well in but also states that i did not win. i want to get healthcare that's much more affordable and much better healthcare. that's what we are doing >> i want to ask you about tax reforms. >> go ahead. >> you said the other day that there were some adjustments made and there would be something of negotiatable for the leaders, you said tax deductions, you did not say tax reform >>. >> so we are doing minor adjustments. we want to make sure the middle class is the biggest beneficiary for the tax form we are doing massive tax cuts and simplications and reforms.

in some cases we can do it in one page or some cases we can do it in two pages. we are bringing the categories down -- if you include zero because there are zero we are bringing it from eight to four that's big simplications just before >> mr. president >> i agree with the president, it is about reduction and reform it is been 30 years since this kind of effect was under taken successfully and we'll succeed this time. >> the bill, the details of it will be written by the ways and means and finance committee after we approve the budget and the budget opens a past to tax reform it is about both reform and

reduction. >> why have we heard of anything of the soldiers that were killed >> i have written them personal letters and they have been sent or going out tonight i will call the parents and families because i have done that traditionally i feel very badly about that that's the toughest calls that i have to make are the calls that this happens, soldiers are killed it is very difficult thing it gets to the point where you know you make four or foive in one day, for me that's the toughest the traditional way in you look at president obama and other presidents, most of them did not make calls i like to call when it is

appropriate and when i think i am able to do it t they have made the ultimate sacrifice. i am going to be calling and i want a little time to pass since i have been president, i have but in addition, i wall-acy wrote letters to individual families and they'll be going out tomorrow general kelly says if you could stop the attacks against america america americans, do you believe that cuba is responsible? >> i do believe that cuba is responsible. >> mr. president -- >> you believe homo sexuality

should be illegal and muslims should be banned the same question to you mr. leader >> we >> well, we'll be meeting with roy sometimes next week. we'll talk to him of a lot of various things >> the people of alabama who i like very much and they like me very much and i can report to you then, okay >> mr. president >> go ahead. >> following up on mcconnell's project. what is your attempt right now [ inaudible >> i can give you my position. the blue slips for those who are not familiar with is a custom

determine bood by the chairman f judiciary committee. i'm give you my view my view is a blue slip on a circuit judge is simply a notification of how you are going to vote. include otherwise, would left the same at the beginning of this center. 48 senators would be able to block calls and 62% of the judge nominated. that's not a terrible place to land and the senate that deals with judges with a simple majority so my own personal view is, that blue slip on a circuit judge should simply be a notification of how you intend to vote. >> my attitude is i want capable

people going to the courts here. >> mr. president, 2012 you tweeted obama complaining of republicans and bsing your words, you wrote he could never take responsibilities, today you said about some o f the challenges right now in congress and washington, i am not going to blame myself, they're not going to get the job done. what's difference than now >> let me explain what's different. we have nominations pending right now and we have 182, if you look at this, the number that he had approved was 65% and 70%. we have 39%. they're holding up every single nominatio nomination >> schumer and the group is holding up every single nomination they are good at obstruction they are holding up every single nomination and i will tell you peter, it is not right it is really not right they'll bring them right after

to the end of last week. what they are doing is unfair. >> so luke at even bush and obama and clinton and you look at bush originally have 389 verses 182 these are approvals. you look at clinton's, 357 verses 182 you look at president obama 364 verses 182 these are nominations approved we have unbelievable people and they're waiting to be approved and they have been waiting for r a long time. i believe mitch is going to push them very hard and he can do that and he wants to do that he wants to get the nomination through and he wants to get it through fast >> can i follow up with i could? >> you seem to have a spirit

cooperation of the house majority leader when it comes to the idea of -- over proposal that you put, it seems like they critically reject it so where is a good relationship? >> i hope to have a good relationship and if we don't, we don't. we have races coming up and as you know, a year from now, i think we'll do very well i can say this if we get ftaxes appro approved, we'll do unbelievely well i guess one or two cases by over 40% over democrats well -- we'll let you know that. i would like to give you that answer in about seven yearsfro now, is that is okay >> meaning one plus serven. i hope to be able to i like the concept of bipartisan right now they are doing nothing but obstructing and really, you know if you think about it

they're against major tax cuts that's going to make our country stronger and competitive that's a hard thing to win in an election i believe that some democrats will be voting for us when it comes to the tax cuts. i am going to be proposing a proposal bill not too distance in the future. some where in between or shortly after. i will be developing an economic development bill that'll put so far ahead of other countries and you will not believe it. >> mr. president thank you, mr. president last week your administration making two announcements on rolling back and getting rid of the caution reductions of obamacare. a lot of criticisms have been

saying that all that you are doing -- >> and a lot of praises. >> sure thing, is there a single policy of your predecessor that you do not want to touch, sir? >> well, we are opposite in terms of incentives for jobs we just did a new high today in the stock market we picked up this moment $5.2 trillion in stock market value. we have the lowest unemployment rate in, i believe it is almost 17 years, we are doing well and we are going to be doing immigration work that's going to be outstanding and we'll have people coming into our country and on a merit system and not coming in randomly but they'll be coming in based on a merit system where they can help us. i have companies moving into this country and you saw what happens with the industrial

bill we have companies pouring back into the country for the first time and anybody's memory. we are going to be fairly soon where we'll need workers our country is going to do so well the tax cuts are going to be a major part of it >> you want to keep it in place though >> is there a single policy to keep in place? not too many the opposite side of the pe spectrum >> peter, go ahead >> i was told that he did not offered and a lot of presidents don't. they write letters excuse me, i do a combination of both sometimes it is a very difficult thing to do but i do a combination of both. president obama, i think probably did sometimes and maybe sometimes he did not -- i don't know all i can do is ask my generals

and other presidents did not call or write letters and some presidents did not do anything i like the combination when i can, the combination of a call >> would it help of robert mueller's investigation? >> well, i would like to see it end. >> excuseme, the whole russian thing was an excuse for the democratic losing the election today, hillary blamed nigel. i mean that came out of nowhere. they have a big advantage in the electoral college. they were unable to do it. there is been absolutely no collusion and it is been stated that there is no collusion

they ought to get to the end of it because the american public is sick of it. go ahead >> mr. president with fox 5. do you believe that your comments affected bowe bergdahl receiving a fair trial >> well, i cannot comment on him. i guess he's doing something today as we know and he's also setting up sentencing so i am not going to comment on him. i think people have heard my comments in the past well, they should be able to do something, we need strong border security and we do want the wall >> go ahead. >> i spoke to governor brown, we had a great conversation we have fema there and as you

know, james whit gave us an a plus we have fema and military there and first responders there it is a tragic situation but we are working closely with the representatives from california and we are doing a good job. >> mr. president, mr. president. >> go ahead in the back. [ inaudible question ] all i can say it is totally fake news and made up stuff and it is disgraceful of what happens but that happens in the world of politics, john >> on the wall, did you insist or -- [ inaudible >> our country needs a wall. mexico, you knee what's

happening there and what just happened yesterday with one of their political leaders. >> mexico is not doing playly well when it comes to those kinds of things that we show great interests in we need a wall to stop it. we need a wall in this country, you know it and i know it and everybody knows it we have to have a wall so that's going to be apart of it. >> mr. president [ inaudible >> well, i think, well, that's according to the clinton administration puerto rico is very tough because of the fact that it is an island. it is also tough because as you know it was in poor shape before the hurricanes ever hit. their electric grid were destroyed before the hurricanes got there. it was not working and was in bankruptcy and owed $9 billion

and onto top of that, the hurricanes came. >> you will have to build a new system i believe that any place in the world, their generators are all over the place their electric system was in horrible shape before. we are working right now and relief funds has just been approved and i have earned the process of being approved by congress >> it includes puerto rico and the u.s. virgin islands and etc. it was in really bad shape before we have done and i will say this we delivered a tremendous amount of water you have to have distribution by the people of the alley. we have massive amounts of water. >> we have massive amount of water and food they have to driistribute to the food and the people of the

island what now actually have military distributing food something that they should not have to do the governor of puerto rico, he himself says we have done a great job. puerto rico is a tough one. go ahead [ inaudible question ] >> mitch, do you want to talk? >> go ahead. >> we expect to have a vote on it at some point

[ inaudible >> i will be going to south korea and china and japan and vietnam for the summit we have a big economic summit there. i may be going to the philippines also we have been invited to the philippines so i will be going there. i look forward to all of them. we have not saet the details we'll take a look at that, i have not heard in terms of invoking >> mr. president >> you discussed the special counsel and the investigation. are you considering firing robert mueller >> no, not at you will >> are you concern of a larger conflict in the region >> we don't like the fact that

they are classic, we are not taking sides we hat for many years of good relationships with the kurds as you know we should never have been there. we are not taking sides in that. [ inaudible >> oh, i hope hillary runs is she going to run. hillary, please run again. i think she will look, when the take a knee, there is plenty of time to do a knee and plenty of time to do plenty of things well, that's why she lost the election honestly, a set thinking, that's the reason she lost the election when you go down and take a knee

or any other way, you are sitting specisi sittisi sitting essentially for our great national anthem. you are disrespecting our flag and our country. >> the nfl should have suspended some of these players for one game, not fired. if they did it again, it could have been two or three games and for the season, you won't have people disrespecting our country right now. if hillary clinton made the statement in a form of sitting down during the play of our great national anthem is not disrespectful, then i fully understand she did not win there are a lot of reasons she did not win including the fact of she's not good at what she did. that's something i heard about i think her statement in itself is very disrespectful to our country. >> thank you very much

>> what about the las vegas shooting as it relates to the nfl. >> it is very disrespectful to our country when they take a knee during the national anthem. just hear it it is very disrespectful to our country. the people of our country are angry at the nfl all you have to do is look at their ratings and stadiums you see empty seats where you never saw before a lot of people are angry at it and it is highly disrespectful and they should not do it. thank you very much everybody. thank you. an impromptu of news conference in the rose garden, the president and mitch mcconnell covering everything that's on the buffet these days

from cuba and the sonic attack on the i am si personal there. >> they hope it gets done before the end of year. they caution these things can take longer than that. lets bring in john harwood to get his perspectives on what we just heard including h is sort of concluding comments of the national football league and taking a knee to keep that one alive and clearly the ownership of the team are going to meet on that one lets go back to the topic of our viewer which is tax reforms. >> well, he said he hopes to have it done this year but mitch mcconnell sort of put the brakes on and noted that it will take a longer time for president trump and obamacare passed and i think he's trying to set the table it was unusual as you indicated,

the whole buffet was covered i don't think the news came out. >> for having assisted in preventing the dea from cracking down on opioids. he's going to dominate -- the president says if i find 1% of the negative stuff in that story that's true, i am going to make a change secondly, he says he was not thinking about firing robert mueller. he extended his fight with the nfl. instead of fighting with players, you should suspend them >> he stood there for an exten extented period of time talking about them >> he spoke steve bannon who

over the weekend gave a speech saying he's taking mcconnell down and cutting off his money very, very unusual situation >> yeah, i saw the whole thing and the context of two things. what i heard of the sub context there of stories that we heard and the relationship between the two. it is mopoisonous. and also, clearly the president is very, very slighted by the stories o f the new york times over the weekend that he had not lived up to his promises and his base >> that's something mitch mcconnell is the leader of the senate and somebody on a personal basis is keenly interested of the jeb bush nan . that's a natural area where they

can talk about things they have done together. it does not take a away from the idea that the president ridicule mcconnell on occasions but his strategyists is leading his campai campaign >> john we'll leave it there and we'll see you back we'll take a short break, folks, there is a lot more to doch we'll talk about that off the cup and unscripted and an interesting presidential conference moments ago we'll be right back after this

hey, you every talk to anybody about your money? yeah, i got some financial guidance a while ago. how'd that go? he kept spelling my name with an 'i' but it's bryan with a 'y.' yeah, since birth. that drives me crazy. yes. it's on all your email. yes. they should know this? yeah. the guy was my brother-in-law. that's ridiculous. well, i happen to know some people. do they listen? what? they're amazing listeners.

nice. guidance from professionals who take their time to get to know you. turning to further our conversation of what we saw from the rose garden. our jared bernstein and sarah

fagan. top topic is tax reform. at the same time the president and the leader both objecting have strongly to what they see as the politics of obstruction practiced by the democrats sarah, will this bill get done by the end of this year and if not by the end of this year, sometimes in tirs quartfirst quf next >> well, i think it is going to get done and so what i took from it was they think it is going to slip into early next year that's okay, as long as it is done in the first quarter. >> jared, do you think that there will be any democrats who'll go along, we have not seen the bill, we have seen the outline and the framework of it. do you think there will be democrats votes for it >> i would be skeptical about that this is all being done under a

tax called budget reckon sioncio reconciliation at least that's what the president is counting on it is in the senate where the process really makes a difference here this notion that democrat are obstructing is just nonsensable. you know who's obstructing a bunch of republicans are uncomfortable of the debt and impact some of those are in the house and that's one of the problems they are facing. a lot of these members have been going on for years of how unhappy they are with national increase and how they are supposed to sign on a tax cut and adding $2 trillion to that >> senator corker spending out the importance of people and looking for offset >> that's my point >> the other thing is he pointed out. the democrats are been running their classic warfare politics

and talking of the rich getting richer and it is a monotra that you here out of almost every single speech when in fact you look at things like the standard deduction and other benefits laying out there is a lot to be had here. >> so do you think does that mean some democrats may actually go along >> well, i am skeptical because of the nature of the politics that we face and you look at the bernie season be bernie sanders and elizabeth warren, at the end of the day, other conservative democrats who want to support it but feeling too pressure from their base to get there. this will only pass only with republicans. >> can you give the president some credits at all for the man who says he dislikes and distrusts the media. he sat there and taking questions of 20 or 30 minutes and the first time he's done it.

his willingness ability to stand up there taking questions that's unscripted >> yeah. >> and slamming the media on the side >> i invented a new wor worword word -- everything that the press says he does not like becomes "fake news." there is interesting dynamic mr. between the senate and the leader of tax cuts and the dynamic of tax cuts timing for trump, it is a sense of urgency because he did not have any win yet. for mcconnell, he does not want to sit there getting blamed. it is going to take longer than the time they have this year to pass this. i also want to be clear of the obstructionist, i agree with

sarah, obstructionist under the d democrats. the fact of ending the estate tax and stuff like that. >> he did not get to the question of who's obstructing on tax reforms or tax cuts. when he was talking about obstruction, he was talking about judicial >> which his numbers bear it out. >> yes, yes. >> yes, both sides have played that game. >> yes >> more now than ever. >> cannot dispute that >> sarah, thanks, jared as well. >> he likes to fight the people that he hits >> he goes out there and takes the question he does not know what's coming you hear his voice and you got to question it

he does it and we have gone in the past of a long period of time of having a press conference >> all right, you may have heard him saying insurance companies rd."quote, "getting away with muerwe'll take a closer look oft may be coming with this group, stick around

throughout my career, i've been fortunate enough to travel to many interesting places. i've always wanted to create those experiences for others. with my advisor's help along the way, it's finally my turn to be the host. when you have the right financial advisor, life can be brilliant. ameriprise

earlier today, president trump targeting drug companies >> drug companies are getting away with murder >> joining us now is barbara wiener >> barbarbarbara, is company qu, "getting away with murder" >> i don't think so. we have an extensive care in the industry that's putting a lot of pressure with pharmaceuticals. clearly in the drug industry and as in other industries, there are bad actors and there are companies that have taken conspicuous and aggressive price

increases. i think we have seen a number of examples of leaders in the industry partnering with man care in making the pricing decision for their new drop. >> who are the bad actors? >> well, i think there are a variety of companies that can raise prices consistently and aggressively on an annual basis. we have a very developed generic drug industry. once a drug loses its patent, the penetration of generic is about 95%. that creates a lot of head room for innovation we have seen companies coming in and pricing new drugs lower than the standard of care that they are improving upon to paint the whole industry with that brush is not fair and inappropriate. >> he hones in on the fact that

in the united states, we pay much higher prices for drugs and anoth other countries. >> we are basically as the united states funding the rnd budgets where all other wealthy countries around the world actually don't is there any mechanism to work on that? can we say to wealthy country that why do you think people deserve? >> the reality is many of the new drugs that are entering the market that are providing a lot of values for patients are not priced terribly different in other countries. the drug that was launched 10 or 15 years ago in the united states and the price have gone up over the period of time annually

thereby no mu there are no mechanism to raise the prices in the united states. >> why not >> so there is a price control out there that does not occur in the united states? >> in terms of increasing prices, yes. >> it is an porimportant one tht this industry will police itself or will get regulated. and we need leaders in the industry to price responsibility there are many examples that many companies are doing it. 15 years into the market, it is an improvement of care, it is 45% cheaper than its predecessor eavesdrop. t those leaders went to manage

care and asked them what the value propositions would be and how they should price their drugs. those are the examples those industries should look to. >> what's the margins of the big pharmaceutical company >> it depends on what you look at for profits about 30%. what you got to take into account is how many industries would pursue costly and briskly endeavors with the reality or knowledge that only 10% of the time will they work. there are countries going back to the discussions about pricing where companies are choosing not to launch their drugs in their markets because there is no return on the investment they're making >> barbara ryan, opioid, that's not going to go away, we are out of time today. >> thank you, see you soon >> there is a big call on apple today, the stock is moving

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apple trading higher on a big upgrade.

who said unit volume and sales are less important than apple increasing prices for its iphones and storage upgrades there's also a new note out from gbh insights, saying apple's path to $1 trillion valuation just got easier. gentlemen, welcome andy, let me start with you. we're in a rush for time your case, and you have raised your rating on it to overweight, price target $187. is that happenapple is going tol more phone its at a higher profit per phone right? >> yeah, our concern has been units and sort of came to the conclusion that the units are not as important now because the gross profit per phone is probably going up so much. >> how much? >> well, significantly, right, you have a $300 price increase we don't know exactly what the cost increase associated with that is. but i think the average margins on the iphone x are going to be higher than what they are on the rest of the lineup that means margins are going up. >> dan, you think they're going to sell way more phones than

other people do, right you must agree with andy and then some. >> yaerkeah, we view this as a supercycle we think 265 million units could be shipped in 2018 and ultimately, really rests on china. i think that's really where the golden opportunity is to put fuel back in the growth engine i think this is going to be a supercycle that's going to surprise naysayers and ultimately be the biggest product cycle we've seen from apple bigger than the iphone 6. >> your estimates for the number of units sold is higher than the rest of the street convince us. why are you so convinced they're going to sell so many more >> we spent a month doing survey data globally. five of every ten upgrades are going to be iphone x, much higher asp we're really seeing pent up demand 350 million potential users out there looking to upgrade we're seeing over 90% that are going to upgrade to an iphone. we have not seen that since iphone 6 we believe that these are the seeds, you see the forest

through the trees here $1 trillion price with mark cap in the next year. >> i think we had a little news attempt n item not long ago on this broadcast, iphone 7 sales are ahead of iphone 8 sales. are at this point. is that at all alarming to you or what you expect at the early stage of a rollout of a new product cycle? >> we're not seeing quite that i think iphone 8 is a little bit ahead. it would be alarming if that was the case our case relies on pricing power and you're not getting it if you have people buying the 7. >> yeah. so -- >> you know. >> go ahead. >> i would just say, i view ipho iphone 8 as the appetizer to iphone x when you put it together, 60%, 70% of sales that are this you version and that's significantly better than we've seen in past cycles as andy talked about, asp as well as profit is really going to be the tailwinds here. >> there's an -- and you both believe that there's enough demand for these very highly

priced phones. i guess part of it is that you don't -- you don't shell out the thousand bucks straight away you pay for it over time just like you lease a car, right? >> yeah, exactly it. that's really something we're seeing from consumers. price only three of every ten apple consumers that we talk to were really discouraged by the price point. i think we're going to start seeing going into october 27th, going into halloween, november 3rd launch, the excitement builds and really into fiscal 8 '18 -- >> buy the payment, not the price. andy, last thought, where's the stock in a year? it's at, what, 160-ish now >> my price target is 187. i'm obliged to say 187. >> all right 187. andy, we appreciate both of you being here, dan as with el. >> thanks. >> thanks. "check please" is next they don't invest in alternatives or municipal strategies. what people really invest in is what they hope to get out of life.

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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. it's time for your business of the week. jenny of jenny's splendid ice

cream is credited with starting the artisanal ice cream movement with flavors like brambleberry crisp. when listeria was found in a pint of their ice cream, the company rebuilt their food safety program and their reputation for more, watch "your business" weekend mornings at 7:30 on msnbc. >> sponsored by american express open helping you get business done. "check please. >> welcome back. "check please. key nugget out of the donald trump news conference is that he assigned blame to the cubans for the sonic attacks on the embassy in cuba. we haven't actually seen the state department do that they complained the cuban government hasn't protected our diplomatic staff but assigning blame, they haven't gone that far. this is news out of the president. >> it's always entertaining to watch the president, questions with the press with whom he has a bit of a tendencious relationship one of the reasons americans dislike the media, we you were listening there and heard them

screaming, screaming, screaming at him that, to me, i've not covered the white house, not been part of the scrum. >> your son's 11, my son's 3 what you get every night at home. >> they scream questions at you? quickly, crude oil, watch iraq the kurds. crude oil up a little bit but if it gets heated, we could seea bigger pop in crude oil. >> thanks for watching "power lunch. >> "closing bell" begins right now. welcome to "the closing bell," i'm kelly evans at the new york stock exchange on this monday. >> no pause. intentional? >> nope. >> okay. i'm wilfred frost. i forgot what my name is. >> worldwide exchange. >> i'm in for bill griffeth. netflix will be the first of the bank stocks to report earnings this season. the numbers coming out in about an hour. what to expect from that report and look at whether the previ s previously announced netflix