real. >> 20 seconds left cisco. forgot cisco earnings. jimmy. >> the stock is poised to break out on a 15 year high. all it needs is one good earnings report. the secret is in acquisitions. they make small acquisitions, not big. they should start to show up. >> thanks for covering that. thanks for watching. "power lunch" starts now i am melissa lee reimagining ge, the industrial giants flashing its dividend, largest cut ever by a u.s. company outside a financial crisis all part of the overall effort the stock getting whacked. inside the turnaround plan. republicans face a critical week for tax reform. where we stand, and why many of the top millionaires and billionaires are calling on congress to raise their taxes, not cut them. media mergers, regulating social media and sexual harassment scandals in hollywood. barry diller interview straight

ahead. "power lunch" starts now yes, welcome to "power lunch. i am michelle car use oh cabrera. stocks have modest gains trying to avoid a third straight day of losses. nasdaq higher by four. two big toy makers rally on mattel jd.com single day sales total more than $19 billion. and ggp is higher, after offer from brook field property partners to buy shares it doesn't already own. higher by 8% tyson foods, higher 1.5% beat on earnings that ceo joins us in a moment on "power lunch." and tesla rallying 3%. elon musk tweeting about a semi truck, unveiling this week

saying it will blow your mind. over to brian. he is in a special place >> yeah. naples florida at the global leadership conference. try to blow our viewers's minds with great guests. talking market volatility or lack of. bitcoin, jpmorgan chase, what happens when the central banks pull money back. jeb bush on state of the gop and tax reform and ian bremer on trump's big trip, why a speech given by the president of china couple weeks ago may have been the second most important political speech in the last 100 years. yeah, we dig into that big show coming up in naples, florida, tyler see you in a few minutes. >> thank you very much i am tyler mathisen. we have a big and busy two hours ahead. we begin this hour with perhaps the biggest story of the day, that would be general electric,

the industrial giant, icon of american industry, cutting its dividend for just the third time in its long, storied history planning a host of other major changes to its business. the news sending stock lower today, now down almost 40% so far this year. bob is following the story. >> ge cutting difficult denlds from 96 cents to 48 cents. doesn't sound like much. they have 9 billion shares outstanding, cutting dividend in half, shareholders are getting $4.1 billion less in dividends each year. on a historic basis, that's a loss it is the 8th largest dividend cut in the history of s&p 500 by dollar value here's the list. notice ge has the record for biggest dividend cut that was back in 2009.

notice the list, all of the other big difd cuts were during the financial crisis ofvident c during the financial crisis of 2008 will this spread to other companies? not likely companies cut the dividend either earnings are dropping or cash flow dropped so much it can't cover the dividend or they have to borrow too much. that's the case with ge but not the rest of the market we're at record earnings corporate cash flow is very strong overall dividend payments now at the s & p are at a record. companies don't want to cut dividends, they know investors value them 310 companies have increased dividends this year. only 9 reduced you add ge today, that makes ten. you get the point. bottom line, judging by

response, many investors did own ge for roughly 5% dividend yield, aren't enamoured with the 2% that lousy guidance didn't help at all this cut looks to be more of a one off than any sign of trouble in the markets back to you. >> robert, thank you very much catch cnbc's exclusive interview with ge chairman and ceo, john flannery, making changes fast. tomorrow, 9:30 a.m. eastern on "squawk on the street. congress is working on the tax bill house hoping to vote on it this week >> reporter: lawmakers are under pressure to start delivering on tax reform this week senate finance committee will begin to debate its version of the bill in committee in a few hours and there's plenty of speculation that the tax cuts in the plan, including reduction in corporate rate, may have to be less generous or temporary the reason is because in the

senate there are complicated rules that require any tax bill to not add to the deficit in the long run already, finance committee chairman orrin hatch has put forth a place holder amendment that sayshe will comply with the rules, but doesn't say exactly howl do he will do it there are hundreds of amendments that could be offered in the senate this week most will be probably discarded, but gives you a taste for how much needs to be negotiated and how far the bill could change. over on the house side, ways and means committee chairman kevin brady laid down a new marker as well he said he rejects the full repeal of the state and local tax deduction that's in the senate version of the bill the lawmakers in the house had come to a careful compromise over this provision, that won over one key swing voter, representative tom macarthur of new jersey he said today the house bill

isn't perfect but good enough. it looks like at this point the house has enough support to pass its bill on the floor this week and that would allow republicans, guys, to keep the promise passing tax reform before thanksgiving. back to you. >> thank you very much appreciate it. let's go to brian for his first guest. thanks very much we're at the global financial leadership conference. i guess it is fitting the first guest is the guy that runs the cme. terry duffy. thanks for having us. >> thank you, brian. appreciate it. >> spectacular conference. jeff immelt, former chief is supposed to be here tomorrow, maybe i'll stay another day. lack of volatility you make your living on volatility the market story i think of the year is 30 points up every day, no volatility. what's going on. >> first of all, brian, volatility is only a component of what makes markets move

we get into a different world today, you're creating more products people need to continually manage risk, even though the bar isn't where it is at, business is growing it is a dangerous world out there. i know we have geopolitical events and unrest in different parts of north korea and different parts of the united states, but eventually they're going to start to move the markets. >> when though >> people do more risk management, even in low volatility situation that we have eventually comes home to roost i think what will happen, you'll see a big dislocation in prices. you see a selloff in equities or rally in interest rates. one of those will happen we saw it a couple of years ago. people want to forget this oil traded $93 a barrel for three years. next one was $23.56. huge market move had impact on other stocks that's what i think we'll see. when, i don't know, ultimately has to happen. >> to your point, forget that

last january, 2016 was the worst january start to a year ever by the markets. dow fell something like 18%. some say that was the correction so many had been looking for would you agree with that? >> i don't know if i agree or not. these are unprecedented territories, levels we're at now. it is difficult to predict markets. that's the beauty of what i do, i don't have to worry about the price but the risk of price. volatility, even though it is not levels we're all used to, it is still better than marketplace, but not the moves we're seeing. >> etfs, do you think the boom in exchange traded funds have in any way caused price dislocation. >> sure. >> and do you worry about if we start to see them, everybody owns broad market etfs we have literally never been here before. >> we haven't seen that. it is going to be interesting to see if the market tips over, what the exposures people have

on the marketplace it is different than historical other situations we have been in i agree with you i think that's very interesting. >> do etfs add level of risk as well as level of safety? >> i don't know that they add a level of risk or not as long as everything is in margin, can trade within certain rules, i don't think it adds to risk of anything i am not concerned about etfs, derivatives. i am concerned with the rules. like bitcoin. >> that was my next question bitcoin. they did a 22% round trip this weekend. i'm sure you saw that, fella thousa - fell a thousand dollars. your goal is to reduce that impressive volatility. why launch that product given it seems to be kind of the wild west. >> it is the wild west because of the way it is traded. i said this for awhile, since we

decided to list this product when we apply our rules to bitcoin the way it is traded, will be different tomorrow when you have margin, velocity logic functionality like in the marketplace, a host of rules when you have market to market in our product these are all different structures that bitcoin doesn't have today i'm not trying to reign in the volatility i want to give it a place for other people to layout that risk today you cannot short bitcoin there's only one way to go, buy it or sell it to somebody else you create a two sided market, it is much more efficient. >> terry, melissa lee at cnbc headquarters thanks for taking my question. will there be trading limits on bitcoin as with other commodities traded >> melissa, absolutely there will be trading limits. >> what sorts of limits are we talking about if it is an asset that can move easily up or down 10 or 15% in a single session? >> yes there's no question about it

it can be. right now we're looking at roughly 20% on it from the previous close on the limits, melissa. what's important is because of what we built into the system, think about circuit breakers, we have velocity logic functionality. right now, the markets move quickly, we stop a micro second or a minute. with this product, these bumpers are longer even though we have inter day limits, we also have velocity functionality that might stop the bitcoin market for an hour i think that adds more structure to the marketplace. >> terry, i'm sure you saw barons over the weekend, talking to co-founder of interactive brokers, he said for the first time i am extremely scared about bitcoin futures. cites low margin rates that smaller, weaker clearing firms will probably offer in order to attract business is there any plan to limit clearing members' liabilities for peers to a certain amount to ensure there isn't a spread of

liability? >> melissa, i had a conversation with him he obviously called me, one of the bigger members, and hopefully had my teamworking with his team, hopefully has a better understanding of what we're trying to do every fcm has the ability, melissa, if our margin is 20%, 30%, 40%, whatever it is on a particular product, that fcm can increase the margin in and of itself doesn't have to go off the exchange that's the bare minimum. they can charge more or tell clients they don't want people using those products, and we have seen that this is not different than any other product seen what's important, when we have liquidation only events, when someone says the price is going to zero, what are you going to do, i said i am not letting it go to zero, i implement something if the market drops precipitously, we stop trading if we think it is going away, we set a price, we have the long and short, match them at a price and that's the way the rules

read today >> two quick questions because i know you have to go. number one, do you think trading futures in bitcoin will limit up side because it tams it, and number two, put a date on when we can short bitcoin >> i can't answer the first question, i have no idea again, i should not be trying to predict the price of products. i am here to manage risk of products you hear some say worth 20, 30,000, some say zero. big spread on the price alone. when can you short with the product, i think sometime second week in december you'll see the contract out >> this year. >> okay. terry duffy, chairman and ceo of cme. thank you for having cnbc at the conference >> appreciate you being here. >> let you do the conference >> thank you very much >> tyler, you want to short bitcoin, mid december. >> i have to wait. thank you. coming up on "power lunch. more big interviews. ceo of tyson foods will join us. his company reporting a strong quarter raising its dividend plus, outspoken media type barry

diller will join us. what does he think about the ldia merger mayhem fromast week stay with us we'll be right back. ♪ dividend [vo] progress is an unstoppable force. the season of audi sales event is here. audi will cover your first month's lease payment on select models during the season of audi sales event. the market.redict but through good times and bad... ...at t. rowe price... ...we've helped our investors stay confident for over 75 years. call us or your advisor. t. rowe price. invest with confidence.

some of the biggest power players in the internet economy gathering to discuss big issues ahead. julia abnormal steen is with barry diller in a "power lunch"

exclusive. >> thanks so much. thanks for talking to us we were just on stage with the internet association talking about some of the big challenges in the media space we're in a new era of consolidation. do you think media companies need to combine to better compete with tech giants >> not really. i mean, i think that they, look, i think there will be more combination consolidation because that's the way of things, and also because there are a lot of cost energies i don't think they're sales revenues, i don't think more content gets more revenue or the idea of saying well size and scale. the truth is they all have kind of sufficient scales to be able to play. what they'll never have again is sufficient scale to dominate the

media business as they have historically that's over. >> because of the dominance of tech giants. >> absolutely. when you have 100 million subscribers and your best hope entering is maybe to get 20 or 30, the math outdoes you if you're google and facebook who have an absolute monopoly on advertising, you're never going to compete with them. >> do you think at&t acquisition of time warner will be approved? >> i don't think it matters, if they don't approve it, they'll win it in court and they should. i would think they'll fold, the government, but who knows. i think it would be a good -- i would love to see the trial. i think it will be definitive and healthy. >> what do you think about reports that cnn is a sticking point. >> i don't know. if the reports are true, it is really stupid. what would people, other than if you think it goes to the total political, whatever we call him,

can't call him leader, but that he's made statements about cnn being awful and this and that, he will do destructive things, probably it is hogwash on a structural matter, what the hell does cnn part of at&t or warner future, has nothing to do with any position in terms of what's right or wrong about media consolidation. it's nuts. so i think it is a straw man >> you have been a vocal critic of the president in the past we spoke before the election and a couple times after the election >> i don't want to go there. >> you don't want to go there? >> where would we go there's nothing to say. >> are you more or less concerned about his policies more than when we spoke this summer >> oh, yeah. >> what are the policies you're most concerned about >> actually, look, i think we may get a sensible tax reform

done which i think if it's heading in the direction it is heading, i don't know enough of the detail of it, in the main, do we need it. certainly we need it corporately and certainly need repatriation of millions offshore if those get done, that's fine everything else, tell me where the good is. no there is none. i don't think it is good in terms of environment, i don't think it is good, please why make me riff on like this. it is what we all know it is really crummy. >> in terms of issues like net neutrality. >> crummy and almost indecent. all right. enough what >> moving on to question, back to m and a >> thought you were doing net neutrality. >> that's a policy that trump administration said it is going to reverse is that problematic for your internet company >> i think it is over.

i don't think what they do about net neutrality it is practice of the world, i do not believe no matter what law supports or is tossed aside that net neutrality is not going to be the way things are done. still going to be able to push without anybody in between asking i think that's the way things are done i don't think it can be violated no matter what laws are. >> back to m and a. >> as a practical matter. >> as a practical matter disney buying fox assets, you helped create fox years ago. does it make sense for disney to buy fox and do you think it will happen >> first of all, i have no clue what will happen so that's whatever do i think they're -- disney i think wisely, what bob iger has done is fantastic. he is one of the few that said all right, we're going to make a huge investment on getting a direct relationship with the consumer, which means various

services, over the top services that are not tied to closed circle of going through other distributors we're going to go direct to the consumer and put a big investment behind it i think that's really smart to do long term if you're going to do that, then you want as much production as you possibly can get your little hands on so i think it is totally rational to want to increase that. and only way to do it is buy one of those companies whether one of them will sell to him, don't ask me. >> the other side of the business, pipes, softbank and charter, do you think we'll see a deal there >> soft back and charter >> charter and someone >> charter is pretty good size, but i suspect -- i would think over time there will be some consolidation there somehow.

but again, best hedge company now is really comcast. comcast is perfectly right now of all of those companies, comcast is the most perfectly positioned because they really are on the distribution side in a significant way and they're on the production side also in a significant way. whichever one you bet on for having the ability to grow in this period when big technology companies take over almost everything, that's a pretty good bet. >> what about risk of cord cutting. how big a threat to comcast and other media giants >> i think it doesn't matter for cable, comcast is a cable company, a data company. for comcast, if you cut here, cut the big bundle or stop buying their program on which they don't make that much money

in terms of their program assets, talking about via the big bundle, then they're going to get it on the other side in terms of data. i don't think it matters i think most cable companies, huge margins on the program side have seen them because of the can't call it greed, just of the pricing power that cable programmers have over the years, sports, et cetera. i think they continue -- >> speaking of sports, are we in a sports bubble? the rights more expensive than ever nfl ratings have been struggling. >> don't know. i'm not enough of an expert to say. >> a question about this era of harvey weinstein you have been in the movie business for years >> that's a jump >> it is a jump. i have to ask you before we're out of time. what does this mean for the culture, internet companies that you run, here in silicon valley for the media companies. >> way beyond internet, media, everything i think it is true across, certainly true across corporate

america which is for whatever reason, it is before harvey and after harvey and i really think that's what he is going to be remembered for, forget movies and everything else. i think this is a huge turning point. i don't think you're ever going to go back to practices, call them in the main, fairly grayish practices where christmas parties or parties where employees got together and men would take some advance, they would all get drunk an act drunkenly. a lot of dicey things happened i think that's gone. using the christmas thing as a little point i think culturally i think this is a huge, huge shift. never, ever, it will never go backwards. >> fascinating conversation

always let you jet off to the next meeting. barry diller, thanks so much for joining us guys, back to you. >> after harvey. thank you, julia remember that one. tyson foods posting better than expected earnings and revenue fourth quarter driven by strong demand for chicken and beef looks like an all-time high for that stock year to date, up 21% versus 15% for the s & p. "power lunch" with tom hayes good to have you here. >> great to be here, michelle. >> we have a little delay. wow. it is good to be in the protein business you were able to raise pork prices nearly 12% over this quarter. 4% for chicken and also -- everything is going up, prepared foods up 12.5% is this because the diet of choice is high protein diet and everybody is anti-sugar at the

moment >> you know, really is that's a big tell for us consumers want protein and they want it all the time it is now the number one health attribute that consumers want in the diet, more than 50% of all americans are actively trying to have more protein in the diet. important is the fact that we are a cooking company. and parts of the store they're shopping is changing, they're going to the perimeter of the store. >> i saw an ad for soup that was advertising that it was high protein. i was thinking 20 years ago, that would have said high in fiber. ten years ago would have said low in fat now the same can says high in protein. here's the thing higher prices bring more stuff to market. more beg more began stanley saying it will go up and bringing the prices down. are you worried about that >> you know, we talk about a lot of that on earnings call today

there's more capacity coming online in our projections we have that. the margins are reflective of that, guidance i should say. there's more capacity coming on. big thing is exports they have been extraordinarily strong for the u.s. to china, to mexico, and we have -- we're part of that, any sort of export creates domestic disappearance, which is supportive of pricing for us and margins >> tom, melissa lee. you mentioned more supplies coming online. there are increased number of slaughter houses out there, increased competition for workers. you have to raise wages for workers to attract them, and focus on staffing. meantime, looking at using robots more. how much do you think you could save by automating some processes, when could we expect that online? >> yes, let me start by saying our team is extreme focus of ours, we have lifted wages quite

significantly in the past year, and that's in our guidance going forward. we're also looking at automation, robotics are important part of every industry for sure, not the least of which is food production we want to take the most difficult jobs out of the operations and automate those, and it is better for worker safety and better for quality. we're focusing on that but as a starter are increasing wages at jobs that are probably the most difficult in our company >> tom, i want to let you know if my 11-year-old could east tyson buffalo chicken strips every night for dinner, he would. and basically his father would say the same thing, they're that good let's talk about trade you mentioned how strong the export markets have been for you. i think pork notably, certainly chicken as well. are you at all concerned about the future of trade relations between this country and our western hemisphere trading partners and china under the new

trump approach to trade? >> first of all, tyler, we have to make sure we get your son a full supply. >> i wasn't fishing. no, it is good, man. >> yeah. well thank you and what i'm saying is certainly we are always focused on what is happening with the administration as relates to trade because exports are such a big part of our company, about 10% of our sales are export. so our feeling is do no harm don't want to have anything happen to the agreements we already have the fact that the administration is pushing for more exports from the u.s. to china is very good i think that's a thing that we are very much happy about, but also at the same time focused on domestically growing our business because that's where our innovation and engine on

brand building has been put to work in the last several years. >> if i can echo what tyler said, jimmy dean frittatas, amazon fresh is always selling out, fresh direct doesn't have them work on that, okay thanks for joining us. coming up, why some realtors are afraid to show homes, why some rich people wt anto pay more taxes "power lunch" will be right back d high-dividend strategies. sure, these are investments. but they're not what people really invest in. what people really invest in, is what they hope to get out of life. but helping them get there takes a pure focus. because when you invest their money without distraction, hidden agenda or competing interests, something wonderful can happen. they might just get what they want out of life, and maybe even more.

well, it'sonce again.eason >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade.

welcome back to "power lunch. please td to be joined by vice chairman of jpmorgan chase we talk about risk, talked north korea, saudi arabia, collapse of commodity prices a lot of people here and other places we have been to recently say perhaps the greatest risk is the one we're not talking about, 18 to 20 trillion on the balance sheets of the four big central banks around the world that are now going to start to remove that what is going to happen to global financial markets when all of these central banks begin to normalize >> first of all, they don't normalize at the same time and at the same pace second, it is important to recall how did we come to where

we are it is tenth anniversary of a deep crisis. the response was extraordinary loosening of monetary policy interest rates all over the world have become zero and real interest rates have been negative and balance sheets of the central banks expended there was a reason for it. however, i believe by the very definition of unconventional policy, it means that it cannot be the new convention. the u.s. is now ready to lead the way towards normalization. i don't see this as risk i see this as opportunity because the markets will never think the u.s. was taking excessive risk in tightening because the u.s. waited for ten years. i think it will be good. >> let me ask more bluntly excellent note by jim paulson, he noted since 1959 when money

supply goes up, equity market goes up 12%. money supply is probably coming down, correct? so stocks go up when money supply goes up wouldn't the inverse be true >> those correlations between two what we call endogenous variables don't tell us much the important question is does the equity market represent hope for the future or a picture of the present. normally equity markets represent hope about the future. what is the future of equity markets are looking at they look at tax reform, they look about deregulation, they look about normalization, they look about infrastructure investments, and if these things happen, then productivity will also grow. >> first off, the whole globe has been reflating

tax reform is not the reason the greek stock market is up 45% this year. >> that's correct. many, many people in the universe, each one has his own story. the important thing is when you talk about economic policies, the three major countries today or the four, u.s., europe, japan, and maybe china are at different place in their siecyc. the u.s. is in the phase in which the cycle is mature and the fed can start easing the tightening. >> their accommodation will overco overcome our debalancing the balance sheet. >> there is no true and false. that's also costly if printing money would have been the solution, why should we start retreating and going back. the fact is it was a good mechanism to extinguish a fire

it is not to stimulate growth in sustainable way. sustainable way. >> jacob frenkel former head of bank of israel. wish we had more time. see you soon this conversation, sir, is not going away thank you very much. sue, send it to you. >> thanks so much, brian. here's what's happening at this hour, everyone. a team of international scientists saying global carbon pollution went up this year for the first time in four years they presented their report at the international climate meeting. the reason for the carbon increase, china. >> they're the main drivers, so china in particular is pushing up emissions, large block of developing countries pushing up emissions and declines in u.s. and eu are not sufficient to offset those increases in other countries. >> thick cloud of toxic smog ten times the recommended limit in new delhi. government officials struggling to tackle public health crisis well into the second week.

the forecast of rain in the next three days could, however, help clear the smog a bit. the u.s. and south korea held joint naval drills off the east coast of the korean peninsula sunday in effort to demonstrate joint operation capability three u.s. carriers joining in those exercises. you're up to date. that's the news update shares of ge taking massive hits today after the company slashed its dividend in half part of a turnaround plan unveiled today some headlines crossing now, we head live to the investor meeting in new york city next.

let's get to a news alert from the ge investor meeting in new york with morgan >> just got out of a meeting with john flannery and cfo jamie miller i point blank asked if 2018 was the year at the bottom for dwindling earnings and cash flow he said it is a reset year

it will grow from there. first year will be hard, massive heavy lift with detailed execution. strategy moving forward, focusing on dividends, m and a, organic investment in terms of the stock moving lower today, and this year, real answer to stock performance is running the company better, different culture, discipline, focus on cash flow portfolio review will be never ending process the form in which they exit assets, 20 billion to start yet to be determined, and there's no retreat on the idea of digital, despite that they're cutting costs by $400 million. back to you. >> thanks for that run-down. back to brian in naples, florida. he has a big interview with jeb bush and some people are banding together, making demands on congress regarding the tax bill. they want even higher taxes,ou y heard right. they said they want to pay more. we explain after this break. sec. ddos campaigns, ransomware, malware attacks...

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welcome back to "power lunch. we are pleased and honored to be joined by jeb bush, former governor of florida, presidential candidate mr. bush, thank you very much for joining us, governor >> great to be here, great to be here in florida. >> it is i am lamenting going back to new jersey for a number of reasons, including tax reform which we're going to get to in a second. before we get to the nuts and bolts of the gop and what's going on, you probably saw comments from senator mitch mcconnell about roy moore, saying he needs to step aside. would you agree with that? >> i would i would. this is not a question of innocence or guilt like in a criminal proceeding, this is a question of what's right and what's wrong acknowledging that you're dating teenagers when you're 32 years old as assistant state attorney is wrong, just plain wrong. >> do you think 27 or so days left, if the gop were, if mr. moore were to step aside, they would have time to be competitive in that senate race? >> i think so. more importantly, we need to stand for basic principles and

basic decency has to be one of those. in the poisonous political environment we have now, one of the rules is if you attack someone on the other team for doing something wrong, when it happens on your team, you have obligation i think to speak out as well. >> we look at it, and taking aside everything else that you mentioned obviously, every vote is so critical in the senate with tax reform and everything else going on. what is all of the more conversation doing to the tax reform discussions talking more about more than tax reform. >> talking this is not just related to roy moore, it is also related to controversy created by the president i think there needs to be total focus on getting tax reform done because of the benefit it will bring to millions of americans for high sustained economic growth they look poised to do it. i am optimistic that they do it. they know they have the duty to

do it. more importantly for the challenge we face of stagnant wage growth. >> do you think it will get done >> i do. whether it is the senate version or house version, i don't know lowering the corporate tax rate, eliminating multitude of deductions that exist, full expensing of capital investing, moving to territorial tax system, all of those are a great benefit. it is a shame that democrats can't support something that in many cases they proposed when they were in power. >> there are sides of the media that would suggest the gop is in a, quote, civil war. i'm sure you've seen that thrown around >> yeah. >> there are differences in legislative policies, priorities would you say the gop is fractured now? >> it is fractured for sure. >> would you agree with the civil war mondiker. >> no. but we are fractured for sure.

i think we need to focus on things in common and tax reform is certainly one of those. i don't think anybody in the caucus and house and senate oppose this idea of simplifying the code, and allowing it to become more job oriented in the united states. >> looks like >> it looks like this rule where basically you cannot pass anything that adds to the deficit. it looks like hashed in the senate side and we'll have to make some of the cuts temporary. >> that's the idea because it creates on uncertainty the rule should be modified. maybe the rule is not going to change but it does create a problem. companies does not act and they're going to change their thinking we are very short term oriented and how we go about business these days and the matter of fact that we are not training people and not creating higher

wage jobs and income is lag behind >> i have been calling this, this elimination or partial elimination of the blue state pay back >> don't take it personally. >> no, i live in the blue state and i wrote about it the gop is going to increase the influx in the state like florida. if that's soft deduction is partially eliminated, would you expect another wave? yep. >> of higher income, too >> and highly income and highly educated people moving their residents to florida >> because you do see more number of people moving. >> absolutely. there is no question about it. places like napel benefit from

that for sure. it works very well and our schools are doing okay, we don't have an income tax or a state tax. >> do off big studio for cnbc for some where in the miami area >> jeb bush, thank you very much >> i don't think you got enough credit for the planning you did when you were the governor for planning of those. thank you very much. we got a studio down in miami. we are ready to go >> i guess you can just stay there, brian [ laughter ] >> no, we miss you, come back, just joking. >> it just came out. the truth came out, lee. >> i always speak the truth, thank you, a crucial week for the tax reform coming up while many of the nations' millionaires want congress to raise their taxes and not cut them

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hundreds of billionaires are coming together to tell the

governor paying higher taxes >> you are right over 400 american millionaires sent a letter to congress saying they don't want a tax cut. the current tax cleanse benefits the rich and leading to cuts and education in healthcare. quote, "we write with a simple request, do not cut our taxes. we believe the key to creating more good taxes --." >> now, the millionaires work in conjunction with the left leaning responsible wealth project and united for repairing economy. according to the tax policy center, taxes under this plan would go down to all income group of the top 5% group and a third of the cut of their tax income would go up to 2.5% and

the average taxpayers get 1.5. >> how many of them have ordinary ncome >> many of them are inheriters of trust >> thank you robert. >> thank you, guys >> coming up, shares of ge slumping after cutting dividends for the third time america owes to opioid crisis is now having a worry aing effect the second hour of "power" beginning right after this break.

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more of the second hour of "power lunch," i am michelle caruso-cabrera here is what's on the menu ge is slashing their share stocks are taking a big hit and it is down 40% what's next for the giant? >> toy story, what a narrative would mean for them in the toy sector chrysler begins shipping its controversial new car. it is a whopping 840 horsepower, it is barely street egal power lunch starts right now

checking the market right now after starting the day, the major averages trying to carve out some gains the dow and s&p 500 trying to avoid the third straight day of losses the ibb worst day way back check out the bond market, the treasury, two year notie is now at a nine-year high. brian. >> thank you very much we are here in naples, florida, where you heard jeb bush saying if you don't make tax corporate,

it would be stupid a recent speech given by the president of china makes number two of the most important in the modern era we'll ask ian grimmer why he says that and what it all means. >> lel loall right, wite'll loor to that. shares of ge is lower. will this be november to turn around the stock, lets bring in our analyst at morning star, barba barbara, it is great to have you with us. >> what is behind the decline in our view >> yes, you know it seems to us that the market is reacting to the fact that this is not a quick turn around in the new york terms the market is having a difficult time and envisioning what ge's long ste-term trajectory is goio

be in. you don't believe the company is now going to focus on. i think they made the right choice in retaining healthcare power and aviation which is one of the crown jewels of their portfolio and those three assets belong together. that is clear example of a economy that benefited our economy and those three assets will continue as they work through the turn around. >> their dividend cuts making a lot of news and the free cash flow that they outline, really frightening a lot of people, did they cut the dividend enough to give them the flexibility and do what they need the do? >> everybody is taking a look at what's happening in 2018 tough take a step back and realize that there is a collection of assets here under better management should be able to return to a much healthier free cash flow i think 2018 is difficult and potentially that could lead over to 2019. if they are able to take the structural cost out that they outline and manage the business

better to take advantage of the opportunities they have. you should have materials to support that dividend going forward. he wants to concentrate on aviation and health. give us the names and categories of the biggest ones that apparently will not be apart of the ge portfolio five years from now. >> sure, he highlighted today transportation, loco motives and apart of the business that's separated out from power segment. >> what about water and other infrastructure one of the problem is that it did not know what it wanted to be no, we'll be a digital company or a medical -- nwhat about tha big infrastructure play that i thought and oil services for that >> uh-huh. >> kwa, well you mention water, that's taken care of and that will be happening already but

sure, i think when you look at the businesses they're retaining and you have healthcare and power and aviation all of those things are involved in building out and developing economy so you need to have healthcare and developing an economy in order to get the economic environment going forward and you need power and infrastructure going forward and economic environment and people want to travel, you have to bring business to that area and also allow people to leave that area so i think that's where the aviation sets in those things all tie in together while in my opinion. >> by my calculation, using the low point, industrial free cash flow estimates for last year of thedividends of 70% of industrial free cash flow, that's a lot of free cash flow can you rule out another cut, do you think? >> i think what that is telling us in this exhausted review,

they are basically bringing down the dividends and under line operation will support that dividend of course, you cannot rule that out, if you have a recession area environment occur between now and then, of course, you have to take a look at your assumption from what we know, flof the new management team that it is a comfortable level for them >> earning of a dollar making it easy to calculate the multiple this morning it straightens at 20 times next year and what is the right multiples for ge, has it fallen off or deserve a bigger discount? >> you know some are not sure that's the right way to look at it you have to take a look at what is the earning power this company is going forward and where can the company get to in two or three years from now and

once you get a stable business model coming out of the ge, the company can demand a premium in the future >> barbara noverini from morning star be sure to catch john flannery at 9:30 a.m. eastern time the dow and s&p 500 avoiding a third day of losses in a row lets bring in the chief investment officer of fiduciary share drug and tim seymore, asset management, thanks so much for being here, guys tim, what do you think of the markets right here there was a time general electric doing what it is doing and we would have worried a recession, they don't play that role anymore

people are over doing the flattening of the yield cur f and it will have to move three fourth or they'll tell us five times next year. we gotten through an extraordinary earning season it is duflt to find fresh catalysts especially in a handful of catalysts and those secular sectors that's gone through the roof look at the macro and the labor dynamics i think it is uncertainty around tax and how aggressive the feds are going to be. >> so there is uncertainty around catalyst and a lot of people hoping a tax cut are a catalyst for corporations. are you relying into that? >> it is a little dangerous to you and washington dc, tax policy as an investment catalyst, we are not certain of the politics involved and these things changes are not daily but hourly in terms of the tweaks and projected out there.

i think you have to look at the basic and fundamentals and it is additional bonus if you do get some tax relief. back to your question about ge, i think it is fascinating that we have been focusing so much on this dividend -- and absolutely not, e is an isolated situation, i think it has a very, very high challenge ahead of itself and the other thing is we have been focusing on so much on the dividend cut, lets talk about the organization challenge of doing any kind of turn around like that. statistics are most large turn around just cannot be executed properly i don't know if the board has made any kind of statement of how much they're going to back this turn around >>s t maybe it is not the same board. they're going to cut the board

and maybe bring on three people. there is so much uncertainty >> there is. lets talk briefly of the ceo and he's been there for many, many years in different roles, of course, is that the right to make these massive changes they were talking about i do think there is a big challenge in that. to project it further to the mark, other companies are going to cut dividends, i don't think it is -- >> that's right, you said that at the top >> yes, like cater pillar. >> tim, even ge got into it. and at a higher level, what do you do, are you adding to a position, do you think the deck is clear enough? >> during that time, stocks is probably down to 10 or 15% that's in line of expectations and as you pointed out

they're going to be 75% of cash flow people fail to recognize of the rerating if you this othink of where thes coming from and there is a significant demand in it, too. there is a ton of negative news here and intrinsically, there is a lot of value there >> i mean, who knows whether -- >> how could he be >> well, you don't know that he was an insider as well and he did a pretty good job transforming a company that was darn big at that time. you don't know >> i am agreeing with the question whether this is the right man for the job and there is an enormous task and predecessors one or two before him were extraordinary in doing

this >> thanks peter and tim. >> all right, it was a big interview their at the last hour of "power. the mergers right now and julia boorstin, he was not drinking but he was not drinking, lets talk about his view on big medium mergers he seems to be saying it does not matter whether the government blocks the merger or not. if they do, they'll take it to court for time warner and at&t will prevail he would like to see that. >> that's right. he did have quite a lot to say, even though his own strategy has been to build companies and spin them off and anti-consolidation model. he did say, the department of justice should approve at&t, if it does not, he expects at&t to take it to court and he says it is a battle.

>> i don't think it matters because if they don't approve it, they'll win it in court and they should so i would think that they'll fold, the government but who knows i think it would be a good -- i would love to see the trial because i think it will be definitive and healthy >> part of at&t and warner future, it is nothing to do with with any of position in terms of what's right or wrong about media consolidation. it is nuts >> also, i asked diller of the reports that disney is looking to buy fox entertainment ax ssst he says he does not know but it does make sense for disney as disney brings its brand. >> leondisney, one of the few t' saying all right, we'll make a huge investment of direct

relationship with consumers which means various services over the top service that are not tied -- we'll go and direct and putting investment behind it i think that's really smart to do long-term >> another company that diller praised, comcast even in light of the cutting trend, he thinks comcast is well positions because of those internet business, those broad band pipes >> he pointed out and i think i heard him correctly, the competitive landscape for media company is different the competition is and will be different when the legacy media companies whether it is disney and comcast fox are competing with netflix and hundreds of millions of subscribers and not just tens of millions. >> absolutely, he said and we talked about this as well.

he made the point that netflix has 100 million subscribers around the world and that makes their investment and content in a different kinds of proposition and if you look at companies like amazon, they're investing a lot in con at the present time but not in the same reason like media companies do >> amazon investing to get people to buy more products to spend on online e-commerce it is a different model. it was a whole different univer universe having said that, he sees opportunities for what he thinks of the legacy media player to continue to grow and do what they are doing >> julia, thank you, julia boorstin here is what's coming up for "power lunch." the race for bill dudley and the

controversial muscle car as 840 horsepow horsepower all that and much more is coming up on "power lunch." 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

shares of amazon is reported higher the company is working on live

streaming service. okay, a lot of attention focused on something else as well. the new york federal reserve, just as much >> president trump's pick jay powell to run the fed. steve liesman is here with more. >> this is an interesting choice, he replaced bill dudley who announced his resignation last week. >> of 135 fed presidents in the history of the fed, six women and three non-white and there is a question where the president should be and as well as someone looking for a strong banking and be holding either banks or markets. here are some of the names being mentioned. and moderator and expert

globally jp morgan affairs officer, and brian sack, he had s same job dudley had before and then there is peter fisher now with dartmouth and also had the open market group job and there is seth carpenter working as treasury and in charge of financi financi financial markets. so no dirt of candidates there here is a few more to look at. robert kaplan is under consideration. his name is one of the potentials and people out there. >> so the chance of getting it is pretty low?

>> i am not sure if it is disquali disqualify >> depends on who you ask. >> i should be clear, maybe michelle does not understand this is not a presidential point. appointment >> this is made by the federal reserve board, approved by the federal board governors. there was talk under dodd frank and because this job is so important to make something of a presidential apartment that was not approved in the dodd frank regulations it is no t the president's appointment yet. >> it says here, steve, stay right there. where am i going to get? i don't think. i don't think you are a flight risk >> you just stay right there >> joe, welcome, do you have a perspective on who may have the inside track on this job and ho important is it? >> it is very important. i don't have any extra in siegs and ill also throw though kevin

worshire name in the mix the understanding the regulatory nature of thing is very important and more important than under stating economics of the regulatory framework is so complex so no dodd frank would certainly help if you are a market practitioner, that would help as well because we dealt from crisis to crisis i am not sure it is going to be chosen from the list that you gave us. >> wait a second, goes, that's the list i gave it. >> no, there is always -- until it happens who knows? >> i do understand kevin warsh's name is not one that's necess y necessarily chosen he may have been passed over this job earlier in '09. >> what's the history either joe or steve of the people nominated to that role

>> do they come out of achedemia or where do they come from >> a lot of crisis back in the early '80s and of course, we had bill mcdonna who was a banker as well, that's not an economist. i would argument most people there were there in past >> what about geitner? >> he would be at the world bank >> at imf. he's the guy that picks up the phone when the financial system dials 911. it is a very important thing of course, it is going to be dodd frank reform and that person is going to play a role in that. the federal reserve is first among equal. they always have a vote when it comes to monetary policy, in

addition, they serve as the vice chair of the federal market committee. the other thing is going to happen, the fed is going to unwhine it, a $4.5 trillion balance sheet which never been done exclusive knowledge. >> that would argument -- up that list, brian sack would know that plumbing as well as anyone. >> hi, joe, thank you, steve appreciate it. >> all right, 840 horsepower of pure muscle and also barely street legal it is street legal chrysler's new dodge, it is drawing critics. some peoplewanted nnbaed on th streets. you got to see this next on "power lunch." so what else is new? how's your mother?

umm..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. that's it. i'm calling kohler about their walk-in bath. nah. not gonna happen. my name is ken. how may i help you? hi, i'm calling about kohler's walk-in bath. excellent! happy to help. huh? hold one moment please... [ finger snaps ] hmm. the koin bathfeaturesextra-e inches, which is 25 to 60% lower than some leading competitors. the bath fills and drains quickly, while the heated seat soothes your back, neck and shoulders. kohler is an expert in bathing, so you can count on a deep soaking experience. are you seeing this? the kohler walk-in bath comes with fully adjustable hydrotherapy jets and our exclusive bubblemassage. everything is installed in as little as a day by a kohler-certified installer. and it's made by kohler- america's leading plumbing brand. we need this bath.

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welcome back here, we are here with president ian.

>> president xi speaking a second ago, why did you rank it that high? >> i write for people all over the world and the united states it barely made the news because we are on trump all the time the changes and the geo political order don't affect us that much. in apex, that's all they're talking about, the rise in china. it is the strongest leader who's publicly willing to become a super power and challenge the america americans. >> what did you hear and what specifically did president xi said a few weeks ago that shocks you so much? >> for so many years, we hear the chinese saying no, no, we are small and i saw a china that

says we are ready to do it on climate and global and on trade. i mean economics -- they are enormously important you have to understand their economy is smaller than ours, half the size. our economy is corporations, those corporations are not patriotic, they support the shareholders and that's why we are here on cnbc chinese corporations are patriotic. the chinese government is writing those checks and the impact of that on other countries around the world is out stripping the economic impact and the power that the americans have >> it is amazing if you go back 20 years, china's economy is smaller than india about the same size as turkey. now, it is the second biggest in the world. did we hear president xi says the communist party is still a partner to those corporations,

many more than they have been. did china take a step backward >> from american's perspective, there is the view that china has they got bigger and respectable size, they were going to politically reform what we have seen is that they really don't have to and at least not for the foreseeable future and no interests what so ever in growing up and being like the americans >> or how about hong kong? >> hong kong is going to be like china. >> as you remember, hong kong, they were supposed to be given the right for actual suffrage and they were offered that and of course, the britts had the hand over. today it is less than 2% so the chinese have changed the rules. th that's a serious problem >> you were in vietnam apex, the president was there.

it was a big trip and there was a lot said that was the one or two trade or take away from trump's trip, anything >> the ttp 11 as act on and not with the united states that's the single biggest take away from the trip look, i don't think trump made any particular missteps with the head of state. they all put on a big show forum and japan certainly did. the philippines certainly did and he's more than willing to be impressed with that. in terms of what did the americans come away from, we got some individual deals for american companies but there is no moving the policy ball on this >> i do think the formulation of the indo specific region, that's actually important and we'll see more of that at a time >> a quick topic do you think iran and saudi arabia will go to war

ultimately >> no, i don't i think it is dangerous. lebanon. >> the timing with the other things that's happening in saudi arabia was suspicious on some people >> could been who knows when you are purging folks and a helicopter goes down >> that's someone you are purging and trying to correct. i would not lead it to iran. that relationship is bad rex tillerson came out opposed to the saudis verses cutter fight and came out opposed to the lebanon's prime minister now and president trump does not know the region and says no, no, the saudis are great >>s the where the u.s. is most at odds at each other. >> i understand the families involved, these are triable systems from a hundred years ago and there is a lot of animosity

on cousins and uncles. western investor and in prison, he's still in prison, why would he be involved in this and what happens to you they believe a lot of money is going to come back and repatrioted and the number i am hearing is 3 billion minimum and i think if these leaders c cooperate, they could end up -- >> did you call this a high level shake down in. >> anticorruption in china, certainly there is a peaiece of that going on. that does not surprise me in saudi arabia but it is consolidation of power for the 32-year-old muhammad bin saudin and his father has been very loud in his proposition to the crown. >> so they scare him a little bit and repatriot the money and let them go on his way

>> but, executions risk, i hate to use that term it is significant. >> yeah, i will double on it >> i wish we had time to get on this we'll get you back on cnbc, ian bremmer, tyler, he just moves around the world >> thanks guys its got 840 horsepower. it is barely street legal, so am i. [ laughter ] >> the new muscle car. eris lthe aot of out rage over it you have to stick around for this one wait, what, what happened? i was having a good round, and then my friend, sheila, right as i was stepping into the tee box mentioned a tip a pro gave her. no. yep. did it help? it completely ruined my game. well, the truth is, that advice was never meant for you. i like you. you want to show me your swing? it's too soon.

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hello everyone, i am sue herrera. here is your cnbc update at this hour mitch mcconnell telling reporters, roy moore, should step aside following allegations of his sexual contact with a 14-year-old girl decades ago >> i believe the woman, yes, i

think he should step aside >> rand paul says he's returning to washington,following an attack that left him with six broken ribs. he was attacked on november 3rd. police charged his neighbor rene boucher just 34 cases were linked t sexual activities. that's the news update at this hour, i will send it back to you guys. >> i am greatly relieved i think everybody is greatly relieved >> you think you are relieved? >> i think everybody should be relieved [ laughter ] >> you got it. >> dwon, om is releasing its controversial demons to others why is it to controversial

>> phil lebeau is joining us now >> it is controversial, look, this car should be banned to be driven on the street this is the dodge challenger, demon. it has the horsepower, 840 horsepower and 0 to 60 dodge is advertising this as a dragster basically you take it to the drag strips. this car is so dangerous to motorists that's registered as an automobile should be banned there is just 3300 of the demons that's sold in the u.s. and another 300 up in canada and for those who want it. it is in demand. we reached out to fiat, chrysler, some people believe this should be banned. they quickly pointed out there are other vehicles with more horsepower and added we have

been transparent that the challenger, srt demon is designed for the drag script if you want to go 0 to 60 faster lan the demon, you can do it we heard about ludicrous mode. i didn't hear anybody saying well, this should be banned from driven in the street >> how much are they comparing in price >> you will be paying a little bit more for the model s with ludicrous mode if you are with the challenger demon >> i read online so it must we true, phil 15 gallons to go a quarter of a mile when you are drag racing? >> well, yeah, if you are on the drag strip, sure if you are opening it up have you been in a drag race, michelle >> i watched "fast and figuurio"

that's about it. >> and elon musk tweeted about this that it will blow out your mind >> nobody sends out a tweet better than musk this is a market that is about 200 to 250,000 class 8 semi struc trucks that are sold every year. they believe there is room for an electric truck. we'll see if it blows our mind if it unveils or some type of driving demonstrations, that's the big question for a lot of people >> the range will be key and how it is compared to the 500 and 600 miles. phil, thank you. phil lebeau.

many realtors feeling unsafe to showing houses because of people requesting home tours just so they can go through the medicine cabinets. da diana olick is joining us now. >> reporter: now the risk is higher due to the opioid crisis bei while being a realitor. when you are talking about opening access to a home and in the medicine cabinet in the house that's listed for sale with doing no checking on an individual and giving them access into a house, we are creating these channels of easy access to drugs. >> licensed agents deep background checks on clients using high level government

regulated data from its parent company, cogint. it is the same thing that lizdel wish she would have. she was hit in a head and held her hostage and demanded money >> you never think it is going to happen to you and it does and it can and it did. >> this is not just about raising a red flag but raising a yellow flag. if the person who calls you gives you information that you find out is not true, the real estate agent can say what, i am not going to show up at this house alone, back to you guys. >> thanks diana. hasbro, what the future means for them and the overall coming up. it doesn't matter what kind of weather.

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matell shares are on place on their best day for 30 years, and taking on their competitor hasbro hasbro makes take over offer for mattel >> thanks for having me. >> so look, i think it is an opportunity for hasbro to make a run and we are nearly nine years

low. matell has been growing in the wrong derek. will it go through i think there is a lot of hurdles that would over come with licenses such as disney and universal and warner brothers and so forth and i would have to believe this should be a very long and drawn out department of justice with you. >> so to focus on, for example, if you are somebody that creates character or produces movies, you would love to have two choices about who you would compete with and license from chose product that is would be made for your characters, correct? >> very much so. it is having multiple bidders and taking out, the two largest toy companies, legg os is just as big as the other two but they don't have the product as hasbro or matell does, the smaller

players could not compete. lets say it proceeds in any way shape or form. it sounds like matell can be up for sale and in play where could it go? >> from hasbro's perspective, you are looking at a $25 equity value for the shares and i can make a case that you know it could be 10% creative without really doing a lot in terms of cost savings and -- >> could matell go to a private economic company >> it is possible. they're engaged in a $650 million cost initiative this company has a revenue growth problem i don't think private equity can come in and turn around the revenue story any better or

worst than the do does >> how does matell lose it >> they lost touch with consumers andissues. they just, they didn't have the content people wanted and while, you know, they were making their moves and going down, hasbro was pulling all the right levers and gaining market share and were able to steal away the disney princess contract to go along with the "star wars" and marvel contract >> all right, thank you, eric. eric handler from mkm partners. battered biotechs. sector down 8% in the past one month. the etf hovering around a key support level. is a bigger drop ahead or could it be a big rebound? we'll trade that, next

throughout my career, i've been fortunate enough to travel to many interesting places.

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biotech on track for its worst day. let's get the next move with the trading nation team, chad with washington crossing advisers, matt with miller taback. chad, i'll start off with you,

what's disappointing to biotech inve investors, this big drop in the stocks actually happened after they reported earnings the earnings just weren't that great. >> right, you saw a top line as well as bottom line earnings that disappointed on the mega cap biotech sector and gilead and celgene are two primary examples this creates a window of opportunity. so we would actually look toward overweighting the biotech industry because we're quite positive on the health care industry as a whole. we think that the regulatory issues as well as government concerns are going to be a passing issue. as well as we would look at one company, in particular, which we have in our portfolio, amgen we believe this company is growing, profitable, well capitalized with very little debt and a lot of cash they'll have above market returns with much less volatility over the next 12 to 24 months. >> matt, is chad right to be optimistic about biotech >> i think so. i mean, one of the things people are worried about, are we going

to get a repeat of what we saw in 2015 when the ibb crashed 40% in just six months the setup is much, much different than it was back then. that year, when that topped back in 2015, the group had wildly outperformed the s&p it was up 64% over the previous 12 months. versus only 8% for the s&p therefore, you had people way overweighted in the group and also people adding a lot of leverage to the group. when the group went down, even when it got oversold the unwinding of leverage caused it to go even lower this time you have over the last year since the election, the group has gone up the same exact as the s&p, in fact, slightly underperformed so, therefore, you don't have that big leverage or overweight in a situation in the group. >> right. >> i mean, sure, we could get a little more weakness here. i don't think the setup is there where we coweuld get a big downsi downside what chad talked about on the fundamentals could help is bounce from here. >> head to tradingnation.cnbc.com "check please" is dmex next. >> and now the latest from

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of bondholders joined together in caracas, met at a big event that was supposed to be for bondholders to meet with the government, figure out what they were going to do it ended in about 30 minutes the question is, did the two individuals who were on the sanctions list, supposedly running the negotiation, actually show up because a lot of americans were nervous about having to meet with somebody who was on the sanctions list >> forbidden to do business. >> exactly >> all right we've been saying all show long that it's a big, big week for taxes and what happens to tax cuts and tax reform. take a look at the underlying aspects of the market. see a strong bid for utilities in today's session real bit for safety. up by about 1% this, in fact, looks like it's a new all-time high for the s&p utility sector, if it's not the all-time high, it's only days off an all-time high this is something to watch even though the markets overall seem calm there's a bit more safety here. >> i don't know about you, guys, i love it when billionaires, millionaires argue over money

and that's what's been happening with roger goodell, commissioner of the nfl and his contract. espn reporting mr. goodell is seeking $49.5 million a year in his new deal lifetime health insurance for himself and his family lifetime use of a private jet. for me, it isn't so much about money. money is the metaphor. it's about who runs the league the owners or the commission >> thanks for watching "power. >> "closing bell" starts now hi, everybody. welcome to the "closing bell," i'm kelly evans at the morning stock exkang. >> the stuff you miss before the show starts. i'm bill griffeth. big corporate story today. general electric, the stock sinking after lowering guidance unveiling its turnaround plan, cutting its dividend in half ceo john flannery says it is the opportunity of a lifetime to reinvent this 125-year-old company. so why aren't shareholders buying it? we have that story