to steal the company literally the 5% premium affected share prices, less than 8% yield i believe they have to go up >> do you own it >> i do own it >> i'm going to answer a twitter question here. regents financial, no, don't double down but do stay long. >> that does it for us enjoy the rest of the day. "power lunch" begins now scott, gentlemen, thank you very much. welcome to "power lunch. i'm tyler mathisen president trump's european tour lands today in the u.k it's his first trip there since taking office. he's facing generally a hostile crowd. thousands of demonstrators hitting the streets. we're live in london straight ahead. plus, trade fairs. what trade fairs today stocks are rebounding and shrugging off all the tariff talk is wall street finally ready to turn away from the earnings season we'll debate that. and dangerous jobs the special series rolls on. today how a former dental

hygienist now makes a living wrestling gators a snappy edition of "power lunch" begins right now. ♪ welcome to "power lunch. the rally is back on they are brushing aside trade wars the nasdaq 100 both hitting record highs and the dow once again positive for 2018 and on track for the biggest weekly gain in five weeks. tech industrials and health care are the best performing s&p sectors. energy, utilities and financials are the biggest laggers. check out some movers. amazon hitting a new all-time high can't afford raising its price up to $2,000 ahead of monday's prime day. but fellow fang member netflix is falling the other way following a downgrade by ubs okay, straight to the market rally at this hour it's a substantial one as you see there.

bob is covering this for us from his usual perch at >> we are seeing moves to the upside here's what is happening, number one, take a look at the technology stocks. great move for fang, in general, alphabet, facebook, microsoft, apple is having a good day overall. when you get these kinds of moves in the big stocks, the s&p moves aggressively secondly, you saw the president saying the allies are going to increase defense spending. the important thing is, that's moving the industrial sector northrop, lockheed, rockwell, all to the up side today as the president made those comments. remember, earnings start tomorrow jpmorgan will kick off with the big banks. and remember, the big banks are all up right now look at that however, here's something very interesting. all the regional banks, they are not in very good shape today in fact, they have not been very good performers at all

and the really smaller ones,i can't put them up for you, they are in worse shape many are down 1% to 2% overall maybe there's some assumptions here that trading gains in these big, big stocks like jpmorgan that you don't have, the smaller regional banks don't have trading operations, maybe they will be a little bit better. guys, i can tell you, the big hope for the banks tomorrow, gains in commercial and industrial long growth something we have not heard for a long time. a lot of people are saying, improving economy means we might get finally a little better numbers. back to you. >> thank you very much, bob. a lot of attention on the banks as earning season begins to kickoff. president trump and the first lady arrive in the u.k. today. shortly they will be leaving london for a palace where they attend a gala dinner but before departing the nato summit in brussels, the president had a few tough words. >> yesterday i let them know i was extremely unhappy with what was happening, and they have substantially upped their commitment. >> so will the president take a

softer tone in his meeting with the u.k. prime minister theresa may? i don't know wilfred frost is live in london. he's going to tell us. hi, wilfred. >> hey, courtney thank you very much. the president arriving here three our four hours ago and he's spent the afternoon at winfield house that's the residence of the u.s. ambassador to the u.k., woody johnson. the first really engagement is dinner at glennon palace the birthplace of winston church hill hosted by theresa may and attended by a slew of business leaders. tomorrow he'll see a military display at the military academy. he'll have a working meeting with the prime minister at checkers, her country residence and tea with her majesty, the between, in windsor, before going to scotland for the weekend. protests are expected, of course, particularly here in lynn london. i just caught with jeremy hunt

and asked for his view on the likely protests against president trump. >> you know, what brings britain and america together we are the strongest believers in the world in democracy and democratic values. and yes, we have lots of leaders who visit london from countries that aren't democracies. and we have to explain to them, yes, we do allow these protests. yes, there will be people waving flags that you don't like, but we don't have to explain that to president trump because he understands why that happens and those are his values as well >> reporter: a very supportive tone there from the u.k. foreign minister towards president trump. whether or not the tone will be supported tomorrow in london remains to be seen 50,000 protesters expected in the square tomorrow morning. and we'll be speaking to the mayor, sadiq khan, here on cnbc, that's tomorrow. >> will, thank you very much as the president arrives in the u.k., the nato allies are still trying to figure out what to make of his time with them in brussels is there a lasting takeaway from

the president's rather rough treatment of the allies? and what can we expect from the rest of his trip abroad? joining us is colonel jack jacobs and nbc military analyst. colonel jacobs, welcome and welcome back the president yesterday said or tweeted, what good is nato if germany is paying russia billions of dollars for gas and energy what good is nato? >> well, we have to be able to defend against any encouragement to western europe. this alliance has existed now for 75 years and it is a bullwork from anything taking place in western europe and now that nato is bigger, it's even more important that nato be strong and be in alliance about which every member can agree

so far, that's been the case now it might be different. >> unpack his thought a little bit, colonel, if you wouldn't mind he finishes it by saying, what good is nato if germany is paying russia the threat, the prime threat to the nato nations or at least in anticipation of many of the nations if germany is paying russia billions of dollars for gas and energy and then follow that thought with his continued exasperation with some of the countries that have not come close to payin the 2% commitment that they made to spend on their own internal defense. not what they would pay into nato. >> yeah, there are two things about that first of all, what germany pays for gas and oil is up to germany, i suppose i mean, we're an enormous producer of both of those commodities. and it's a free market and germany can buy it from whomever it pleases. that has really nothing at all to do with the future defense

spending it is interesting to note that trump is only the latest in a series of presidents who are important allies that contribute a lot more to the defense of the alliance trump has entered the system and made his argument to two of the players, that's germany and great britain. both of whose leaders have really difficult problems at home, political problems at home second, don't forget also that there are six years to go before they have to reach the target. and there's no guarantee by the way, in that period of time, all of the leaders who were talking about it right now, including trump, will be gone,

or pretty close to being gone. >> well, it is interesting that you bring up the fact that administrations have tried, albeit gone about -- i believe unfortunately we have lost colonel jacobs, but we appreciate him being with us we'll head over to bertha coombs quickly at the nasdaq with the market flash hi, bertha we are ch watching shares of etna and express scripps rising this afternoon on reports that from a research firm called reorg, a bloomberg siting of research, says it appears the justice department will not move to block the cvs/aetna merger. last month when i spoke to cvs' ceo larry merlow, he was pleased with how the discussions were going with regard to the regulatory talks with the doj. and he fully anticipated the deal would close in the second half of this year. we've gotten no confirmation from cvs as to any further

progress or anything official at this point but you can see those stocks are moving as/is express scripts being acquired by cig in. >> they are moving 2% or more. thank you, bertha. back to colonel jacobs, i believe he's back with us. as i was asking or beginning to ask, other administrations have also tried to push some of the nato allies to spend a little bit more and they have not been successful president trump certainly going about it in a tactic that is very different and he comes right out and said, i'm glad that they made and agreement. and then he said, whoa, we didn't make an agreement is this a tactic to get them where he wants them to be? >> no, i don't think so. i think it's all theater, to be honest with you. i think the administration understands he's not going to be able to get any of the allies to do anything they don't want to do or can't do with france and italy saying, we

didn't agree to that at all. it's about doing homework. i said, yeah, we're going to do it come 2024, we may or may not have our allies producing or paying 2% of the gdp into nato i think this is mostly theater i think trump went in tough with sharp elbows and came out saying, i've succeeded and here we go. and often the next place i don't -- i don't think nato has any intention -- the allies have any more intention to do what they want to do at the end of the day, nobody can do anything about it also, i don't think whether or not you've got my comment about the political problems in great britain and germany. they are much more concerned -- those two people are much more concerned about that than anything that donald trump has to say and he's moved on, like in a golf game, he's moved on to the next hole. >> he gets another chance to sit down with theresa may here

we'll see what happens with that thank you very much, colonel jacobs, we appreciate you being with us. we have a news alert in the bond market. 30-year bonds up a fraction. rick santelli tracking all the action i like this earlier than the one from earlier this week. >> the ten-year was the charmer of the week. right down the middle average, straight c, c is in charlie, the stock was 2.958. that was outside the pricing market 2.34 bid the cover well, that was a little better excuse me, a little worse. actually, the lightest since february of this year. 61.9 on indirect down close to the ten-year option 10.3 is also very close to the auction average. dealers take a little less than 28% of the auction it's an average grade for 29-year ten-month originally auctioned off in may maybe the bigger story is another week, $69 billion in

coupon supply now in the hands of investors institutions and other central banks. and we'll have to wait and see how yields progress because it certainly doesn't seem like there's a big pressure pushing yields up any time soon in the treasury complex tyler, back to you >> mr. santelli, thank you very much, as always. one day the market sell-off on trade, the next day they don't seem to care right now the dow is up 226 points that's about 1%. earnings season kicks off tomorrow what will the market watchers be watching and how did tesla beat the deadline on model three production new reports out on exactly what happened at that factory i took a ride in a tesla last night. i took my hands off the wheel, court, it was amazing. "power lunch" will be right back ♪ that's confident. but it's not kayak confident. kayak searches hundreds of travel and airline sites

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investors are brushing off trade fears. the dow up triple digits, 221, on pace for the biggest weekly gain in five weeks we were down 219 yesterday so kind of a wash today. earnings kick off tomorrow with jpmorgan, citi and wells fargo on deck. a slew to report next week so will this earnings report be the catalyst for the bulls we'll bring in joe tanias, the senior and investment strategist

of trust and on the initial headlines, we react sharp liply, we react and we are worried is it about the uncertainty of when the headlines come? then we digest it. remember, corporate earnings growth is expected to be strong and we have a strong economy and we move on >> i think you summarized it perfectly. there the just a lot of negativity priced into the markets as it relates to the trade headlines. there's a big difference here between rhetoric and policy. and oftentimes what we have seen is some rhetoric that is pretty harsh. and then a little bit of back pedaling, almost as if this is a bit of negotiating tactic. ultimately, there's a bit of a tug-of-war here. on the one hand, we have the wall of worry. call it trade. call it interest rates call it a flattening yield curve. whatever it might be and on the other hand, you have some pretty strong economic data the underlying fundamentals look

good and the earnings season, that we are just about to get into, is going to shine a spotlight on that and show you just how strong corporate america has been doing >> but joe, where is the -- where is the concern nasdaq is close to a record high the dow is up 225 points we've had very -- now listen, i don't mean to dispute the idea that there were several weeks there where the market was down, but lately, the market seems to be looking way past any of the clouds on the train horizon. >> yeah. i think the nasdaq is certainly doing well relative to other markets. when you take a look at the s&p 500, for example, we started off this year on a pretty strong note and we still have yet to recover the losses, the drop we experienced in the second quarter. ul ultimately, the markets are just not necessarily keeping up with

that you have valuations that have been compressing further and further. that in and of itself is providing some support to the equity markets. >> and joe, we do have the earnings kicking off tomorrow, but the yield curve has been of some concern to some that look at it and say, i don't know, we have seen this happen before, the recession was not far off. but then we could get a really strong earnings season so what are your expectations for earnings and how you put that together in the puzzle with what we're seeing with what is going on with interest rates as well and inflation potentially? >> sure, sure. we have a very good expectation. we would agree with joe. we have very good expectations for earnings over the next quarter and really through the rest of the year but that flattening yield curve is a concern look at it over the last 30 years or a lot of investors that have learned one rule. when the yield curve goes negative, that's when i put my finger on the sell button. so the closer we get to zero, the closer we get to inversion you're going to see volatility pick up. now, from 50 basis points to zero, the market is actually --

had a history of doing very well throughout the late 1990s, the market did well with a fairly flat yield curve so the yield curve getting closer to zero, that tells you the economy is strong. but if we invert, you'll see volatility increase and that would send a bad signal to investors. >> john, what is your playbook from investors to take this into account and the earning season meets them, what are you looking to add to your portfolio >> what we have been doing is trying to differentiate between the news and the rhetoric. the rhetoric on the trade side is very disconcerting. so what we have been doing in portfolios is basically talking to clients about making sure that they are not taking too aggressive of bets we have been awaiting the high risk areas of the market right now. we are underweight emerging markets. we think that if we do have the worst case scenario in the trade side, it will really hit the emerging markets hard.

and we have been underweight in the high-risk sectors of the portfolio. and we have been on all sides uprooting the quality of the portfolios moving from the corporates to the treasuries, rates within treasuries are more attractive than a year ago. so we have been increasing the quality in our portfolios. >> interesting strategies and thoughts ahead of this big earning season to come thank you, both, john and jay for joining us meeting in as pretty of a place as there is in this country, sun valley, as bidding wars heat up who is going to get their honds on sky or fox or skyfox? we'll have the latest and here about it once in a while, an alligator on the loose courtney is averting her eyes here. >> i can't look. >> this is in a -- she's the retail reporter. it was in a walgreens parking lot in texas you'll be flying there later coming up, a professional gator wrangler it's a dangerous job, but

somebody has to wrangle the 'lbeto wel right back. duncan just protected his family

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and give you a choice of your five best rates. duncans wife cassie got a $750,000 policy for under $22 a month. give your family the security it needs at a price you can afford. big media big wigs gathered in sun valley. and julia borstein is there with all the wigs hey, julia >> reporter: we'll, well, tyler. a fascinating time for fox and sky. today they are giving the expected approval for fox's offer for sky.

that opens the door for the murdochs to counter comcast's bid of about $34 billion that it made just last night and was accepted that comcast bid tops fox's offer from earlier in the day and is 18% higher than comcast's offer that it made for sky earlier this year. now, sky shares hitting an 18-year high today on those bids as well as jeffrey's raising the price target on the stock and all the players are here in sun valley kevin mayor, chairman of the direct to consumer business and international, as well as ceo bob iger is here, though iger has managed to avoid the cameras. rupert a rupert murdoch is here along with brian roberts they are awaiting the price that will mandate that disney pays for sky, assuming the deal with fox goes through that's due to a rule that tides sky's price to that of fox, which is the 39% owner now, comcast's latest offer was approved by sky's independent directors. the company is saying it now

expects that deal to move forward to close by the end of october. now we have to see what fox, of course, in concert with disney, decides to do next vis-a-vis sky. but a very fascinating time for the players here in sun valley. >> no it kidding speaking of the players, give us the gossip what do the other players think about the deal >> reporter: everyone is curious to see how it plays out. and it's been interesting talking to the folks here about what makes sense, what is likely to happen at this point. and a lot of people have pointed out that sky and comcast are natural partners they are really in the same business and disney and fox are natural partners and while both sky and disney are -- i'm sorry, both sky and fox would be great acquisitions for either of those companies, if each one of them only ended up with one of the companies, you could see how they would naturally pair off so i think it's still very much up in the air at this point, but certainly considered to be a

scarcity of the premium content assets. >> a lot of players to keep track of thank you, julia, appreciate it. and we want to remind everyone of a big interview come on "squawk box. randall stephenson knows something about big media moguls this is at 8:40 a.m. tomorrow eastern time you don't want to miss that. the price of soybeans is falling more than 20% in the past three months. the president saying he's protecting soybean farmers, but is he actually doing more harm than good? we'll hear from the head of the industry's crate association and victoria secret's was once a big brand name, but some say the brand is broken. we'll tell you what they are doing to combat the sagging sales. that's next on "power lunch.

i'm sue herrera with your cnbc news update secretary of treasury steve mnuchin says the u.s. could reopen trade talks with china. but only if beijing is willing to make significant changes. >> i would say to the extent that the chi these want to make series efforts to changes, i am available at any time to discuss

those. >> the white house releasing a week-old letter from kim jong-un to president trump in which he says his efforts to improve relations will succeed, but it comes on the day that north korean officials did not show up for a meeting to discuss the returns of the remains of the soldiers killed in the korean war. two nasa launch towers at cape canaveral were imploded this morning the launch pads were first used in 1957 to launch echo 1 that was the first communication satellite. they have since been replaced by new launch pads and privately sent those rockets into space. you're up-to-date. that's the news update at this hour back to you, courtney. >> we'll check on the rally at this hour with investors brushing off fears of the trade tariffs. the dow rallying triple digits by 228 points, positive again for 2018, and on pace for the biggest weekly gain in five. the s&p 500 also higher but also a percent. tech is the best performing

sector shares of ca, the biggest winner in the nasdaq 100 this hour. more on that ahead and shares of aetna and cvs rally. reports that the justice department is not challenging their deal that's an interesting move that we brought to you earlier in the year with bertha coombs. and now scott is joining the team. thank you so much. shares of delta airlines are higher on the back of its earnings beat. the question on everyone's mind, what about the trade war according to delta's ceo ed bastian, it's been nothing but clear skies so far >> we have not seen any effect at all as i mentioned, we have the highest revenues in our history. we have posted this quarter, our chinese business is doing well we are not seeing any signs longer-term. it would be hard to know where that could go, but right now all

signs are that things are quite healthy. >> all right so what is the view on the street in we'll bring in joe denardi, the airline analyst good to have you on "power lunch. >> thank you for having me >> the gentleman from delta say things are great, though yesterday that's not the story we got from american airlines. the whole space is under pressure lately. what's the real story? >> yeah, i think what you're seeing this year is a pretty significant year-over-year increase in fuel prices and airlines struggling to offset that with higher fares and part of that is, you have capacity growing at 5% well in excess of gdp. what we have seen over the past couple years in this industry is that airlines have, in general, struggled to get sustained pricing power when capacity is growing in excess of gdp to that degree >> is delta in a spot that others aren't? and from a more positive standpoint i mean, they bought the refinery a few years back which seemed to mitigate some of the issues from rising fuel costs.

are nay a better -- are they in a better place than some of the airlines >> yeah, delta, one of the structural advantages is the fact that they have much higher market share in the hubs in which they operate and they are less exposed to low cost and ultra-low cost competition like spirit, southwest, frontier, you know, those airlines have really challenged united and american over the past couple of years by offering lower fares and american and united and others have struggled to segment their customers and not offer a business customer that would never consider flying on a spirit or frontier, not offering them a spirit or frontier-type fare delta has been in a better position because they are less exposed to those types of airlines >> so, joel, if they have to make up for $2 billion more spent on fuel they year somehow, or offset it somehow, how much do you think they are going to be able to raise fares and what are the next fees that we can be looking for from them,

because that is really a money-maker that they have always relied on to mitigate the damage from rising fuel. >> yeah, i think the general rule of thumb the airlines try to communicate to the market is they can offset 75% of higher fuel prices with fares you know, they have a long way to go from here, but i think that will be a combination of problem reducing some capacity that was another favorable data point from the delta -- >> am i going to lose the peanuts? are they going to take away the peanuts, joe >> i don't think so. i don't think there are too many more fees they can add at this point. so i think it's going to be straight on the airfares. >> joe, quickly, before we let you run, what american delivered yesterday was obviously disappointing. stock was down 8%. you have a buy on it as we speak. did what happened yesterday change your view of that particular name? >> not at all. american airlines has a business where they put their logo on a credit card. when you swipe your delta or american airlines credit card, the discount fee that the

merchant pays goes to the airline, not the card issuer and that's a very, very good business to be in. it's very different than the competitive airline. so i think at some point in the next 12 to 24 months, you'll see a transaction just like general motors did a couple weeks ago to autonomous the business. delta will be in a position to do that and will prove to the market what the market or loyalty program is worth that's the investment opportunity. >> joe, great to have you on, thank you so much. joe dinardi, see you again soon. the usda out with a new bearish report they are expecting higher soybean supplies as a result of new trade tariffs. soybeans are leading the american agricultural export and china is the top buyer purchasing $14 billion worth of u.s. soybeans last year. check out soybean prices when the report came out, they plunged going straight down. there you see the red on that ekg, but they have bounced back a little bit since then. this is on the heels of months

of falling soybean prices. they have slid or slud as they used to say, 22% in the past three months how much longer can u.s. farmers navigate this trade war? we'll bring in the ceo of the american soybean association, ryan finley. good to have you with us we account for 35% of the soybean production brazil, 33%. if the chinese cut back and apparently one out of three soybeans sold goes to china right now. will we ever, ever get that marketshare back >> it's going to be tough. it's going to be very difficult. and farmers see that pain right now. they see that in the prices. and that's the immediate impact. you just highlighted the long-term impact, brazil is a major competitor, millions of acres yet to go into production. what do the decisions, the policy decisions that are happening right now, what is the long-term impact that those are going to have on farmers it's a concern

>> this is a political issue i'm going to ask you to put your beans where your positions are, are you a trump supporter? and do you believe in what he is doing with respect to trade and specifically how it affects soybeans >> for a farmer, it doesn't matter if you're a trump supporter or another supporter, at the end of the day, you have to make sure you can support your farm. and to be able to support your farm, you have to have the prices to pay the bills. and the prices aren't there right now. >> do these policies help that or hurt it >> they hurt it and we know that there are a lot of people that know that. and it is very frustrating and difficult. it is difficult for farmers that supported the president, but it is difficult to say, hey, immediately, this is going to harm us so let's move to solutions. let's figure out what to do in the long-term. apart from the china market, what else is there that we can do to help soybean farmers here in the united states >> he says he's -- he was over at nato and said he's thinking about the farmers and is far from hurting them. he's trying to protect and defend them. is he -- >> where is the disconnect

>> is he sincere or insincere? >> we'll find out. hopefully we'll see the effort to help some of the long-range efforts on our part to develop new markets. in china, they are a huge market for us we need to diversify the market. that's place we need trade agreements we'll see if we can do that. and let's see if we can improve the export and development programs that the u.s. has to help u.s. farmers. but there is no doubt the tariffs are hurting right now. and farmers are saying, we had a number of farmers in washington, d.c. this week talking the administration, talking to members of congress, saying if we could do anything to help us right now, we need that. and we want the market, we need the market because that is the long-term solution >> so ryan, would you say then that farmers, in general, in this country have benefited from nafta, from our trade agreements with china >> absolutely. trade has been a huge benefit for u.s. agriculture. >> can you quantify it >> it would be every trade

agreement would impact soybeans differently, it would impact other commodities differently. i wouldn't have a number on each trade agreement right now. >> but you think -- you think this issue is big enough, and it sort of picks up where tyler had left off, to change votes, to change minds leading into the midterm election it seems like you are -- you are directly countering some of the most critical things the president himself has said regarding the industry in which you lobby for. >> i think farmers are going to pay attention to their farms first. and when they go into the ballot box, there's a host of issues to pay attention to, but economics are number one for them. how they end up voting when they go into the midterms, i don't know in the presidential election, it's two-and-a-half years away they are saying, let's focus on right now, because we have a problem right now and we need to address that and if the president isn't going to move off-center with the tariffs, we need to look at other long-term solutions to focus on that's what we are pushing with

the administration and with members of congress. >> what about the tariffs that are already in place on steel and aluminum certainly there's farm equipment that has to be bought, that's got to be made of steel and aluminum is that already an issue is this a double-whammy with the soybeans for the soybean farm her? >> yes, it is. and i think look at this in a lot of different ways. and that is, if i'm going to purchase -- i mean, the chatter around a table with a group of farmers for dinner is a lot of fun. and they were talking about equipment that they planned on purchasing this year that they're not going to do that now. because they don't have the revenue, they are not going to have the funds to make that purchase, and so what is that going to do? that's apart from the potential increase that we could see in equipment costs because of the tariffs, and we don't know if that's going to happen or not, but the fact that farmers are not buying right now is a sign that there is pain right now and they are expecting that to continue. >> how do soybean farmers feel do they feel that this problem they are confronting right now was created by the president or

do they -- do they see as many people do that the president is pursuing a bigger goal, an important point, which is to level a trading playing field and protect american industries from the theft of intellectual property and that inevitably, inevitably, there are unintended consequences and some interest groups or groups that take a hit who are not the direct target of the policy >> right, a lot of questions in there. let's go july 6th. that was the day everything changed for farmers. that was the day that the tariffs went into place and the retaliatory tariffs took effect. and we saw a fall from top end of may until now, but it was july 6th where it became very real and if you talk to farmers a few weeks ago, they would have said, we are behind the president, we are behind the policies. we understand the section 301 challenges that our country needs to stand up for.

and that's very different today because there is a huge -- i mean, if somebody were to lose 20% of their income, that hurts. i don't care what segment of industry you're in, that hurts and farmers are feeling that right now. and they are starting to feel that emotional impact. they still agree with the concept of 301 in the fact that china -- there are issues with china and intellectual property rights that's why farmers are saying, we need to support the president in the direction that he's going, but we also have to protect ourselves. and so what other ways can we do that and that's what we're advocating with congress and the administration to focus on right now. >> ryan, thank you so much for your insight and conversation we appreciate it ryan findlay from the american soybean federation. >> your question goes to the heart of the debate on many issues, it was on your program yesterday or the day before where somebody said, the president's argument on the issues are correct should nato countries be paying more

sure should china not be stealing intellectual property and the trade issues be more in balance? of course, it's the method of getting to the solutions that seem to be raising all of these issues >> and the functionality of the approach, which is something that rattles the establishment, whether it is europe or whether it is china, but yeah, there is -- we asked the other day, what has the president got right about this he's right that the nato countries aren't meeting their -- >> colonel jacobs said, he's not the first president to try to do this tactics, very different. okay they want me to move on, but when an alligator gets loose, who are you going to call? it's not me, but we'll introduce you to the woman who answers that call. and we'll fill you in on factory conditions what tesla workers dealt with to make sure the model 3s were on time it will make you appreciate your job a little more after this one.

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welcome back to "power lunch,". i'm sue herrera. we are focusing on the shares of synchrony financial. according to a source, walmart is going to weigh a bid from capital one for its credit cards business walmart is also said to be weighing a bid from the current partner, which is synchrony. they had a big drop in today's trading session, just a minor move in walmart. it could be that the current contract that synchrony has is expiring or there's competing bids for the business. and the shares are responding down better than 3%. time now for a look at a job that needs to be done. i'm glad that courtney is especially glad. we don't have to be the ones to do it. morgan brennan has the story of a gator wrangler >> this 900-pound angry alligator is named godzilla.

and the 100-pound blonde on his back is kristy kobart. she wrestles and captures these violent beasts and here in south texas where the gator population is over a half million and growing, these fiercely territorial predators are invading parks and neighborhoods, turning the local kids and pets into very vulnerable prey. >> he's mad. he's hissing >> that's where kristy and her partner chris come in. >> it takes a lot of courage my mind says, to get back, it's dangerous. but the other job is, this is your job >> the way they get the gators just might surprise you. here's chris sneaking up on a gator with a regular old fishing rod. once he reels it in close to the surface, christy wrangles it with a lasso before wrapping its jaws shut with the signature pink tape. >> we're going to get the hook out of her and release her at

our farm >> the goal? to capture and release in the natural preserve >> most of the guys go out to kill the alligators. so i got into it to beat the device out there and to take the animal alive. >> and she makes a decent chunk of change doing it >> if it's a small 3-foot alligator under a car, that would be a real quick $100 to $200 but if it's a company and they have an alligator in their pond, they will be anywhere from $800 to $900. on average, christy and her partner trap 1508 alligators a year, each banking $60,000 annually >> we know we're not going to get rich catching alligators we do this because we truly love what we do, we love to help the animals, i would rather work with animals than people any day. it is staying on your toes and really paying attention to the animal. >> morgan brennan, cnbc business news. >> i don't know what your fear is with gators --

>> your eyes were averted there. >> i don't watch a single bit of it i'm sure it was great if you like this thing. when i was 5 years old, in florida, my dad took me to see this gator, actually it was a crocodile, his name was big joe, the my dad the whole don't fall in that's it i'm done for life i can't even stand to think about it scarce me to death. they take you down drag you underwater it's horrible let's move on because i can't do it. >> okay. >> we hear reports of how tesla was able to meet the production quotes on its model 3. according to bloomberg business week employees were offered free red bull to help them stay awake and when sewage spilled on the factory floor they were asked to walk through and keep on going through the line tesla saying the plumbing issue was quickly addressed in a statement to cnbc said nothing is more important than the safety of our employees. red bull is not a thing i'm a fan of makes me crazy. >> i've never et tease to do.

>> you don't need to. >> never have. >> coffee, plenty but never red bull coming up the latest on the fall from grace of the man known as papa john from hob knobbing with stars to forced out of the company he founded. plus, victoria secret isn't what it used to be according to one analyst who says the brand is broken we're talking bras and pizza next on power lunch. so no matter what you trade, or where you trade, you'll only pay $4.95. fidelity. open an account today. you'll only pay $4.95. if these packs have the same number of bladder leak pads, i bet you think bigger is better. actually, it's bulkier. always discreet quickly turns liquid to gel, for drier protection that's a lot less bulky. always discreet. tap one little bumper and up go your rates. what good is your insurance if you get punished for using it?

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without any saber rattling on trade from

shares of papa john's bounzing back after the chairman resign the after he use add racial slur do you agree a conference call. more on the fall of john schnatter. he was such a big star >> john schnatter resigning as chairman of the board of the company he founded last night after confirming he did puce a racial slur on a conference call earlier in the year. the papa john's provided a statement on behalf of schnatter saying use of inappropriate and hurtful language to me during a media training session are true. regardless of the context i apologize. simply stated racism has no place in our society forbes firps reported the story gnat conference call was with

executives and a marketing agency it was during a role playing exercise intended to prevent future public relationless snaf ewe. this after he made controversial compensates about the nfl leader ship during the national anthem protest petition epartially blamed the leaguefare for slowing sales. he stepped down in january and steve richie the coo is took his place. papa johns says it will appoint a new chairman of the board in the coming weeks major league baseball suspended a promotion it had with papa john's last night and schnatter resigned from the university of louisville board of trustees where he serve two years the stock hit a 52-week low yesterday but it's been surge today up over 10%. >> kate, thanks. >> interesting for that brand. well shares of l brand down 10% on track for the worst day in four and a half months victoria secret the problem. same store sales down 1% in june despite a big sale in fact the sale started so poorly the company extended it

and cut prices even further. the jefferirys analyst covering the stock calling the victoria secret a broken brand. i don't know they are still the capturing leader they have definitely lost market share on other players like airy but it's a rough go. >> they seem to be the most prominent brand in the area. >> i don't know if it's broken. >> but i'm not the target kmer i don't think. >> or are you. >> maybe i am. i don't know all right shares of silence -- silence on the desk. shares of brought com down big today after the company announces a $19 billion buy -- i think that means buyback --no it's a buy because they get by np they are saying that. the markets don't like the deal. and president trump continues his visit to the uk about to leave londed for the party at the palace, the latest on the visitor coming up on power lunch. with an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown

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need a change of scenery? the kayak price forecast tool tells you whether to wait or book your flight now. so you can be confident you're getting the best price. giddyup! kayak. search one and done. >> announcer: strategy, in the final minutes of trading >> the nasdaq outperforming the dow and s&p. >> caps start closing could you tell down. today and every day on closing bell sponsored by etrade the ornl place to invest online. and i'm kurt courtney regan for is hour lunch part ii. what tariffs trunls? the market brushes them off today at least what's next? we'll debate that. and amazesing amazon, the stock hitting a all-time high again as the ecommerce gets ready for the

prime day and a half can the jugger thought continue to deliver and beyond the grid iron nfl quarterback steve young joins us from the field to the broadcasting booth to the private equity world, the second hour of power lunch starts now ♪ i'm on top of the world, eh ♪ we've done this for a while now. >> good afternoon, everybody and welcome to hour number two stocks in rally mode as you see there as trade fears take a bit of back seat right now the nasdaq all-time high and the dow once again positive for the year on the heels of a.75% gain today. >> the utilities and tech utilities worst perform zbleers big cap tech leading microsoft alphabet sisco amazon those among the top gainers. amazon and microsoft at all-time highs there. that up nearly 2%. rough day in realtime following

soft reports l brand, children he is place and buckle worst performers in the sector scott. ty opheim scott walker the markets are where we start bob pisani and mike santelli mike was yesterday an excuse for a shakeout in stocks. >> we have had a view where we had the incremental loud trade related henlts the market has the reflexes lower. it has to destabilize another part of the global markets whether emerging markets surntty processes. oil had a ugly sell off but it didn't develop into the rolling liquidation. the market because we had the good rally people thought we in a good chance of the s&p going to a five-month high we resume for for you. >> why is the market up today? and i call come in and everybody says well there is sort of vague hopes the chinese restart negotiations that apparently is enough to get things going

i think the key thing is we're approaching that 2,800 market once again we have been here before you and i were here a few days aig talking about exactly this what's gotten us here this week most importantly is the the stuff getting all year tech stocks consumers be that means the fang names amazon up5% on the week. alphabet, apple with with, look at the gains when those five move like that the whole market gets dragged up. then trolling the fence stocks doing the defense stocks the allies spending more and there is a rally. >> this is the hypothesisle ceiling. if that puts the stock within a whisper of all-time i highs see if it carries through. >> and aanticipate tomorrow this is a little unusual earning season because there is going to be a big stew, a lot of moving parts here you're going to hear companies

emphasizing the growth part of the economy, not tax cuts. and i think about two thirds of all the gains we see is coming from pretax profits and they're going to be talking about growth and not tax cuts and i think you're seeing we may break through the 2,800 level. >> guys thank you very much. >> all right well nato members are dealing with the after shocks of president trump's visit there to brussels, the president moved to the next stop on the european tour he and the first lady arriving in the uk earlier today. who will he meet and what tone will he stroke strike? wilford frost covers the president live in london with the latest hi, wilf. >> as you said we have nato and defense behind us. what are the key topics between prime minister may and president trump? likely trade top of the list she will already expressed she was deeply disappointed when tariffs were imposed on all of the eu back in march and will be hoping for some kind of verbal

commitment for a future free trade deal with the uk once the uk has left the eu that might be possible if we look at the numbers, the uk is in fact the u.s.'s largest export market within the eu. $121 billion in goods and services annually. and the trade is fairly balanced total trade of $230 billion between the two countries. the other big topping will be russia given president trump's upcoming summit with president putin. earlier i caught up with the new uk foreign secretary jeremy hundred and asked him whether the poisoning of the skripal on the uk soil by russians was an outright attack by russia on the uk >> it was a very aggressive thing to do. and totally unacceptable these were appalling chemicals used and we have already lost one british life as a result of it

and the reaction from the united states was extremely robust, extremely robust across europe, indeed across the world. and that's why the summit that president trump is having with president putin next week is very, very important and indeed the united front we saw of nato at the end of the summit very, very important because president putin needs to know that the west is united and standing for what we believe in. >> but the tone from the foreign secretary throughout, very supportive as it has been from the government as a whole. though, of course, protests are expected, albeit not orchestrated by the government. >> the first stop on the agenda is the meeting with business leaders kicking off in a few hours time at blennom palace. >> when does he meet with the queen? >> that will happen tomorrow, tyler, first up tomorrow he attends a military parade of

sorts at the sand hurts military edema with then with a working meeting with prime minister may at her resident. and tea in the late afternoon with the queen at windsor castle and the queen has met 11 of the last 12 presidents and three of them regan bush 43 and obama at windsor castle so the president will be joining a relatively elite group for those that have met her at windsor castle itself. >> wilf thank you very much. >> as tyler said earlier rally today shaking off drama on the gee political stage and fierce but will investors stay focused heading into a huge round of earnings over the next several weeks. joining us now is eddie perken chief equity investment vofrt and michael scan lynn is the manager with manuel life asset management eddie what do you expect last earning season was great

and no bump in the market. does that change this time around. >> hard to say i think earnings will be good. we're looking for 20% earnings growth year over year roughly a third of that coming from the top line another third from margin growing in excess of the top line and then aed third from the tax cut benefit. it's very robust earnings what matters more is the outlook for the second half. there are a couple of head winds beginning to emerge companies will be asked about on calls one is trade of course are the proposed tariffs having any impact on business and secondly i think fx currency particularly the strong dollar from multinational companies could be a head wind year over year not but versus where we were and where guidance set at the beginning of the year starting to become a head wind we saw with oracle last month. >> miebl, 2794 that's the where the s&p sits 2800 is where we can't get above. what breaks us through the resistance. >> it's the fact that when you look at the quarter earnings

again you have more than half of it roughly half it driven by top line growth. if you want to drive higher you do it with earnings growth one thing you can put significant confidence is in the strepgt we see in the market today even in what is likely a blackout period for companies that can't buy pack o back stock in front of earnings announcements. >> let me ask you about two areas of overweight michael, one is financials i don't know if it's overweight but it's a position last year that is energy and must have worked out well, at least so far. why do you like the two now and into the future? >> yes, financials have been a long-term overweight for us. if you look at that space there continues to be value in the many name. some of the names we like. discover frongs trading a lens and goldman is another name. you look at that stock 1.2 times tangible book. nine times earning they should lap the fic issues they've been having. and they bandit haven't bought

back stock in the second quarter. you have had material under performance versus the commodity rebound yet management teams are a lot more shareholder friendly and have strong capital return profiles as we go forward there is a long-term trade as you have seen tremendous underdevelopment to soil prices should work higher. >> michael yorp largest position is alphabet. still making a big bet on fang and high growth tech stocks. >> when you look at facebook, amazon, google, names we like. google is the biggest position in the portfolio you have a company that continues to destroy the law of large numbers in terms of denominator. they are poised foz operating margin expansion going forward as you see yupt ramps towards $25 billion of revenue the one space we don't own is netflix i have a hard time getting let valuation to work there. if you ramp that company to say 200 million subscribers where

the mathematic company kwap is you are talking about $900 a subscriber if you do the math that's 70 months of revenue based on the highest subskriemgs price they have i can't make it work. >> eddie i understand you look at it differently you're not into tech. you're looking at value and utilities is something you like. thp thp. they had a good day yesterday but not today though. >> that's right. from day to day they're trading with interest rates more than thinking else these days but what's interesting is if you look at the market performance since the market peak in january, january 26th, at least as of a couple days aig when i checked the best performing sector was not technology. tech was third the best two sectors were ut and real estate investment trumpets. some investment stocks are playing catch-up some of the more cycle parts of the value are looking interesting. we need underweight in knows for poefrmt some time we are nibbling the financial names as they underperformed recently industrials every day that trade

is in the headlines and takes the industrial stocks down they've been underperformers this year. i don't think trade war is in our future i think these companies are well managed, good, have strong intellectual property increasing more like technology companies and the way any run businesses and so i think industrials are an area that one can buy on kaekness as well. >> a lot of options between two thank you for joining us eddie perken and michael scan lynn womg up it's our disaster du jour this has many on wall street scratching heads, the name and story coming up. then is amazon the king of tech? one firm says yes. and it's upping the price target to 2,000 should you get onboard plus some of the biggest names in sports gagt erpg in lake tahoe right now. where we find dominic chu, hardest assignment of the day. >> i drew the short straw again. some of the billings names in sports entertainment media business if not in sun valley talking about the outlook for

things including the whizzing name named out there in private horty on spts weave that coming up later on the hour right here on power lunch. >> the bond report sponsor by pimco. >> interactive and the brokerage company. do you know what your broker pays most banks or brokers pay nothing or less than 0.25 of 1%. move your account to interactive brokers and start earning interest why did i want a crest 3d white smile? dinner date...meeting his parents dinner date.

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earning season is about to heat up with financials set to

report tomorrow. so joining us now is lauren gol up the ceo of gallup capitol with $25 billion in capital under management the index has shone a correlation with the s&p 500 and gdp. what is the index predicting for in earning season in that's where we have to start it off lauren i guess explain exactly the index what you see and how that indicates where we are perform when earning season kicks off in high gear. >> we are a lender to u.s. middle market companies. and we have a few hundred companies in the portfolio the index is measuring actual results for the first two months of each quarter. so april and may actual growth and renew, actual growth aeebtd as a way to accurate predict in q it we have strong results, accelerating earnings. this is the third quarter in a row that the index hits all-time in q 4 of 2017 it was the highest growth ray rate in the

index. q 1 of' 18 high growth rates in the index and q 2 highest growth rates of the index. >> when you drill down further when you look at individual sectors or individual stocks if you go that far what does it tell. >> you consumer discretionary and technology are two strong areaens and have been a long time the industrial secretarier is doing well this quarter. in our universe the industrial companies are typically selling within the united states it tends to be less tied to automotive or major equipment. but cross the board we're seeing strength in capital expenditures strength in consumer spending. >> why do you see health care revenues going up faster than profits? >> it's a concern for the seconder, ironically this profit growth in health care about the best growth rate it's been in the past couple of years the health care sector has

consistently had head winds from homosexualment pressures and from wage costs going up faster than revenue growth. >> if we can move also to another thing that your data may be able to indicate and that is the growth of gdp 37 we mentioned that when we introduced you and of course there is a lot of questions about what happens to gdp as the tariffs begin to take hold and how that may cut into it what is your data telling you? and is any of this able to be factored in. >> all of the data we have is pretariffs because it's coming from the first two months and no material tariffs had been built in place but the u.s. economy is heading into the drag from the tariffs with very strong growth. cnbc modies had a survey you announced last week predicting q 2 growth at 3 parking lot 8% that's in the remaining of our data this is probably going to be the strongest quarter for gdp growth in -- in many years. i think that from the tariff

point of view one data point is to take out of the information is despite the head winds of gasoline prices going up they're up almost the 49 cents a gallon in year versus last year. revenue and profit for consumer discretionary companies are up we see the impact of tax cuts, job growth, wage growth, really providing a lot of support and i think that the head winds from the tariffs are not going to be enough to stop that not in the short term. >> okay. well we appreciate you joining us lauren of gallup capitol explaining it to us keep us as honest as earning season rolls zbloon it's the disaster du jour shows a broadcom getting pummeled down 15%. this following the plan to buy the software company c.a. technologies john ford joins you now. a firm questioning the broadcom strategy here. >> this is one that just on paper leaves you scratching your head i mean, they're offering $44.50 per share in cash, around $19

billion. we knew that broadcom was in heavy squiks mode. they wanted qualcomm saying they are both chip companies be apple is a common big customer maybe that makes sense in this case the broadcom is transport kmips, kmips for wireless, moving things auto data transport efficiently whereas ca doming is all about software. >> it's a software. >> the biggest business is main frames frame more than half the refer are knew was in main sframs. the lion share of the operating profit these are two things that at first blush don't seem to go together, except broadcom is very aquestions active and the cash flow at ca reported $1.2 billion free cash flow. that makes sense they want scale. >> wasn't one of the notes out to the point was the hawk? that was a headline about the

deal obvious hi everybody is perplexed that stocks reacted in that way ca is ripping because they are like wow, who knew this deal was out there? and broadcom, the worst day in history because it's a shock to people. >> one thing, either hawk 10 is trying to build out the big box enterprise tech player again what we saw, dell, hp and imbm trying to do 15 yoos years aig or maybe this is a cash flow play either way people bullish on broadcom are scratching their heads, especially because any didn't do an analyst call about this to explain themselves saying well how much of hawk 10's acquisition strategy is now just, hey, whatever looks good that's helping us get bigger we do it. >> any regulatory issues here. >> probably not. because this isn't a. >> qualcomm was a different matter. >> qualcomm was different. that was the national champions. that was the issues of five g and unique technology in the chip space c. a, a have very important company when it comes to main frames and big financial companies,

industrials and governments who have big amounts of transaction data that they need to keep secure but not at that same level of national security, national champion status where we saw qualcomm. >> thanks, tom. coming up amazon hitting the new record high after one investment firm called it king of the tech stocks you said the price tarring to $2,000 it is it primetime for you to get in well if you're not in, almost $1,800 trading nation is next traumatic injury, we have a short amount of time to get our patient to the hospital with good results. we call that the golden hour. evaluating patients remotely is where i think we have a potential to make a difference. (barry murrey) we would save a lot of lives if we could bring the doctor to the patient. verizon is racing to build the first and most powerful 5g network

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>> announcer: find out how your state rank on the keet categories for business. >> all the data and exclusive business analysis is online now. >> in award means business. >> america's top states for business now on top states .cnbc.com welcome back to power lunch. i'm sarah eisen. and this is trading nation look at amazon, surging 2% hitting the all-time high after the price target you said. do you buy amazon or fade this rally? mark tepp erps airy oppenheimer. it's hard to make a case when the stock is up more than 50% but this analyst says another 12% upside. >> are you on a board. >> ke make the case. amaze isn't a great example of momentum in markets. stocks with high risk adjusted returns over the prior year are usually the stocks that continue

to be leadership over the coming he year. and amazon scores high in the momentum work and we like moment up from a macro perspective as well, as long as we have the continued flattening in the yield curve it should continue to support growth investing. i think amazon has that tail wind too in terms of trading levels, getting near term here the break out above 1760 that's supports measures to 1870 trends higher. >> yeah, i mean part of what's helped drive this price mark is double digit revenue growth in both big businesses, prime and cloud. does that continue and are you a buyer. >> prime is the definitely the biggest thing driving revenues from our perspective we are a buyer i think amaze isn't a must own in any portfolio pliem days around the corner on monday and it's a day for amazon that's big are than black friday and cybermonday believe it or not. last year amundson era amazon

posted the best ever from prime tai increased 1.5 billion to 2.4 billion last year. but what's significant is they added more new prime customers that day than any other day in the company history bringing the total amount to over 100 million. that's important because prime members spend five five times more on amazon than non-prime customers. the biggest concern is the valuation. as a forward pe of 138 that's high i wonder at this point about prime saturation in the u.s. market you know it seems that amazon has very high penetration rates in the u.s i'm concerned about future growth so that would be the biggest issue i see right now. but i do see amazon hitting 2,000. >> we'll see what the numbers look like next week. airy and mark you can head to our website on follow us on twitter @trading nation. seal you on closing bell power lunch back in two minutes. >> announcer: and now the

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hello, everyone i'm sue herera here is the news update at this hour in brussels canadian prime minister justin trudeau says canada re-exited to defense spending he says the nato summit reinforced unity of the alliance. >> we have recommitted to our wales gauge many and increase spending to 2% that's what we are doing. >> the attorney for porn actress

stormy daniels michael avenatti says the prosecutors are now dropped all charges against her following her overnight arrest at an ohio strip club. daniels was charged with allowing a customer to touch her while on stage in a non-sexual manner archaeologies in mexico uncovering an ancient peermd that came to light after a devastating earthquake back in september. workers came across the foundations of the peermd while repairing quake damage at at aztec archaeological site out of mexico city and it could shed on light on aztecs. back to you guys ty. >> thank you very much, sue. hitting the links by the lake. some of the world's biggest sports stars gripping and ripping in lake tahoe for the american century championship golf tournament. our dom chu drew the short straw and is forced to take on this rough assignment as we see right there. he has a special guest with him

nfl hall of fame quarterback and a successful business person steve young. go ahead >> absolutely, tyler yes, this is a fantastic event here that american century puts on benefits charities. it puts together a lot of the biggest names in sports media and internetment and business in one golf course for the weekend. steve young thank you for joining us on cnbc. >> hi, dom. >> let's talk about your presence how much do you love the game? and do you find it an enjoyable event to be part of. >> i don't play a ton. i think about it i play pebble as i fall asleep i'm in the backyard with the which havele ball and i don't get out enough but i love the game watch it and think about it a lot and wish i was better. >> part of golf funnels into business because you make contacts and talk about business on the course. tell us what's happening you work in private equity that's your life after football in addition to the broadcast booth duties tell us about the state of private equity right now do you see opportunities out

there in terms of the business world on the private equity size. >> i appreciate that i've been in private equity longer than i played since 2000 and i played 18 years in the professional football and you know, only in america can i surround myself with really smart guys and now $4 billion private equity firm. really attacking the market in an old school way. we look for partnership. that's where there is a vein -- private equity is a science project for many years when you have the science project is leaves the human beings as a secondary fact we tried to introduce in artistis approach to partnership and holistic approach to the transaction. i think there is a real measurement up about -- i hear other firms talking about that now. it's more soft things that you hear about but people want to know about the how the company will be handled, how the not just the transaction but the people, the legacy, all those things that kind of an old school way. that's how we attack to do

more and more with all the opportunity -- and i mean it's so competitive i mean let's not kid ourselves. >> well speaking. >> there are unique ways to attack. >> it's competitive where are the opportunities right now as you look towards the possible deals that you could do? are there sfree specific trends you see. what do you find in terms of overall deal pipeline. >> it's funny. my partner for 25 years rich lawsen we grew up in the silicon valley and aspen our time 65, 75% of our portfolio is software or tech enabled businesses. nowadays everything is tech enabled. and tough speak thelanguage we try to build that bridge from silicon valley to you will a the businesses that are being disrupted,ismism ebeing amundsonened you talk about sfrees like grocery and auto those are the places we play look for people disrupting or protect against the disruption can you play both sides of the fence. and there is a lot of opportunity. you have to have great managers and a great product. that's what everyone knows nothing new.

but for us it's again attack going in a direct dialogue if you have a seller that's willing to have a direct dialogue with me, i'm going to be superhappy about that. >> hey, steve, scott, good to speak with you i have a football question for you. how would you describe the current state of the game? given the anthem issue, the rule changes, so many other things swirling around professional football the last year the state of the game is what? >> well, you know it's funny my partners let me me go to monday night football and i do preand post became i've been there 20 years seth markman and all the guys there. the league is for the first time not in ee elastic in the demand. i mean they could do anything and it wouldn't stop the increasing demand for appetite for nfl football and for the first time a couple years aig you saw that break and that break is i think not going away i think there is a lot of

pressure as far as concussions and injuries and the national anthem. they can't put the genie back in the bottle they have to be athletic they can't be bullies. they have partner to the players, the public, the cities they live in, giving back, figuring out how to take the players that have strong interests in social justice they have to engage them. and each team has to do that they're getting better and better at it they can't just put a wall up and -- and stop what's happening. so i think more and more there is going to be demand for the athletic owners to figure out ways to engage in partnership with you will a the places so they can withheld the issue was concussions and injuries and things that no one can really control. so the state of the league is in flux let's be honest. i think it's going to force in a good way i think the owners to be more athletic. >> that's an interesting way you characterized it that is the demand used to be inee elastic

now we see speculatiandex in the let me ask you about two topics. the anthem did the league solve the anthem problem with the policy announced earlier this summer or could they have made it worst second should collin kapernick play somewhere in year >> well, i think it should be on merit. this is america. if you play well you should play and that's just -- that's the way we are. >> i know that no one seems willing to try and find out if he can. >> i know. and i think that -- i think it has to be -- you got to believe that he has the ability to get on a football team and g going back to the issue about the anthem, you know, the issue is you know, the a player seeking social justice that is not a bad thing. that's a good thing. and i think that we need to engage the players a lot -- you know, 2530 years aig, the union and the owners for the first time got together and started to treat each other as partners. that has -- that is why in my

mind the nfl exploded because that partnership was forged between players and owners that needs to be now enhanced not separated further enhanced by saying what do the players need -- how can we engage and the community how can we bring it altogether? do not believe you can -- you know kind of put a hand up and it goes away you got to continue to develop these relationships. and deepen them. so that the players feel a partner in the whole if they don't it won't go away it will fester. >> one more thing before we let you go was, the idea that the path forward for the nfl, is it on the right trajectory right now is that you can see in it $good for the game the way things are progressing. >> i think a lot of individual teams have taken the -- the lead in getting the players and finding places in their community to go you know kind of together go and serve the community that makes -- it

resonates with the players and those teams i think will be leaders in the future. and we need everybody. right now i think there is a sense that we just -- we're going to not let anybody protest. not going to let anybody do anything that could cause anybody grief. i don't -- as long as everybody is engaged and feels a part of the partnership in it then maybe that works but i have a sense that's not the case for 32 teams. it's probably the case for 10 and it needs to be the case for 32 then i think everyone comes to a solution that really works. >> certainly a lot of issues the nfl has to work out right now. we do though wish you good luck this weekend. >> i know, yeah, thank you. >> playing the 18. >> i got to beat barkley and i'm good that's. >> we're talking to him hopefully about your game as well. >> that's awesome. >> steve young thank you for joining us >> my pleasure. >> power lurj guys back to you. >> the odds makers on the note put barkley at 6,000 to one win. and steve young is probably safe we don't have to worry about

barkley we have seendome play he would be ebeat buckley. >> steve leastman breaking flus on jerome powell. >> thanks very much. jerome powell sitting down with marketplace and ratcheting up rhetoric on the concern about trade and tare i was saying if the result of trade policy is high tariffs on many goods for a sustained period he says that's a negative for the economy and also says if the administration much as lower tares i was with tradeless it's god. his concern he says sperkly is one where we have higher inflation and negative or weakening growth he says that's challenging for the federal reserve. on the inflation front he says he is not declaring victory on the 2% inflation goal. he says we are starting to see wages go up as the market tightens but reemts comments he made about wage growth being a puzzle given how tight the job market is. he does say the u.s. economy is a good place though the fiscal path is on an

unsustainable path long-term he says courtney just real quick, he talks about it hadding the goals being close to the inflation goals. close to the employment goals but not ready to declare restrictry yet courtney. >> scott just quick one for you. he says the tax cuts and the spending should support the economy for a few years. that puts him in the jamie diamond sixth inning camp. >> well, i mean, that's something he says. he tries to steer a little bit clear of declaring that these tax cuts are working the way the administration says they will. but he is holding out hope they could. he knows right now there is a lot of fiscal stimulus coming down the pike. but down the road if the tax cuts do spur additional investment it will have a long-term ekt effect in terms of years. >> good stuff, steve thanks. >> pleasure. >> thank you very much, steve leastman opinion the president continuing the tour in the uk about to arrive at this palace on the agenda a meeting with the prime minister and tea with the

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all right welcome back to power lunch. there is a live picture. the president of the united states first lady due to arrive any moment at this palace. they will attend a black tie dinner with business leaders hosted by the prime minister, theresa may. tomorrow as you know, the president will meet with the prime minister followed by tea with the queen there is the prime minister there waiting on the president and the first lady as we said they are expected to alive momentarily. steve sedgwick is in london with more steve. >> reporter: hey, scott, the marine 1 helicopter accompanied by two ohs pris with the enturj with the left. you can hear whitfield house the house of the u.s. ambassador are getting out of the way you can see the protesters up against the barricade. the president arrived here right about 2:30 local time this

afternoon. he was talking to ambassadorial staff all afternoon and meeting various dignitiaries and as you say he went to blenam palace the birthday of wints churchill. athe leader of coalition he says it's right he should in the you can. part of a close ally this is his response. >> when he talks about trade policies they're about lowering ripping up environmental protections, weakening labor protections, about you know giving green light to american corporations to be able to access the nhs these are policies that ultimately rejected. >> it's a broad coalition of protesters here in london. today is just the appetizer tomorrow tomorrow huge protests including a 30-foot high trump baby blimp, a controversily has been allowed to fly in westminster garden pl

2:00 p.m. local time an abilitily enormous protest taking place they think over 100,000 people marching from portland place right down to whitehall west minutes. a big day ahead. mr. trump will be the checkers to meet the prime minister for bilateral and go to tea with her majestic the queen with that tyler i hand it back to you. >> thank you steve let's bring in jillian ted u.s. managing editor of financial times. gillian always good to see you let's start why don't we with what has just taken place over with the nato people what is your reaction to what went on there? >> well, donald trump likes to treat every encounter on the diplomatic stage about like a wrestling minimum wage he likes to destabilize the opponent by surprising them petition he started by rachgt with hafl tweets saying the other nato allies needed to pay

more for defense got angry about that wednesday night he played nice over dinner partly because the nato allies talks about north korea. and this morning when everyone thought that basically motivate of the skirmishes were offer apparently behind closed doors he came out with an tie raid of tax one by one against the nato leaders. and many of them are in shock. and there is a already confusion about what's been agreed because president trump says the other nato leaders agreed to raise spending and made commitments. people like marc rn says that's not what we agreed there is an air of drama and intrigue. >> do the fellow nato leaders men and women alike, do they concede the president has a point with respect to defense spending as a percentage of gdp and do they concede that the

u.s. punches more above its weight in paying for nato. >> in general around the table of nato allies there is recognition of more spending needed by the european towards the nato burden. even before president trump put that on the agenda there was a broad agreement actually that others had to start paying their way. the points of disagreement around the statistics, the other nato european countries don't agree with donald trump tweets and the numbers he chucked around but of course the bigger issue is about the style and confrontational destabilizing approach that donald trump has taken towards diplomacy. >> and gillian, you know if this checkers agreement ends up going through with the uk, that does in some sense drive a wedge between an agreement that could come between the uk and u.s. because the standards are different. you have to pick a side if you are siding with the eu or the u.s. does that really put theresa may up against a wall? she has a difficult choice to make. >> well right now theresa may is

up against a wall in every possible sense because her own party is in the middle of a civil war about brexit they've been ripping themselves apart. you have a very tumultuous political situation inside the uk generally and of course her relation was the rest of european union are n are extremely difficult right now. so throwing donald trump into the mix is simply one more element in an already extremely difficult kaleidoscope of challenges >> we're watching the president of the united states arrive for this dinner as we speak. the pictures on the left-hand side of your screen for those watching what is the wake of this visit going to look like given what the president said this morning about the agreements to increase spending there's no evidence to suggest that was the case. he's going to have presumably a good meeting here with the prime minister over dinner and then a visit with the queen but after the boat so to speak takes off what's left in the

wake >> i would ask if anyone dares to predict what's going to happen within the next week with president trump let alone the next 24 hours. who expected what we saw unfold in nato the last 24 hours to play out that way. so i'd be very careful about making to mean judgments one thing you should note is that president trump is walking to the blenheim palace is very iconic that's because of the scale of protests against him and the political climate in london right now. so i think both sides right now want to end up with some element of a visit that doesn't have to mean shocks, where they manage to shake hands, where nobody's too rude about anyone else and they affirm in a sense the transatlantic alliance does matter, although frankly they

don't know which side will matter >> what is the lay of the land politically for prime minister may, and do you suspect that she survives these -- the sort of disunion within her party? >> that is the big question right now because the reality is if you roll back a couple of years ago british politics was pretty boring. these days in a sense you've got people speculating maybe boris jaunss has resigned because of leadership fears, questions about schisms in the party, so it's a mess. if theresa may manages to get through dinner in the next couple of days looking confident and calm that will be are respite compared to what she's already had. >> we want to listen to the pomp and circumstance of the arrival here ♪

♪ >> and you can speak to this perhaps better than we can, but probably nobody does pomp and circumstance better than they do there. this is quite a sight. >> if in doubt there's always downtown abbey, isn't there? i mean the reality is this kind of show is exactly the kind of thing that donald trump just absolutely loves think about how clever the

chinese were in that visit in rolling thought the pomp and circumstance so i'm sure the british foreign office have tried very hard to make sure they do indeed have plenty of pomp and circumstance. >> we'll see what comes out of it with this dinner this evening and the visit, an extraordinary one, the audience with the queen. how far outside of london just for a guy who does not know, jillian and oxfordshire, where where is windsor castle? >> it's about 15, 20 miles away from central london and the palace about 40 miles away the symbolism of not being in central london is nevertheless pretty striking. >> and as you point out that's because the level of demonstrations is said to be so high and steve said they may actually crescendo tomorrow, and then the president decamps i believe for his golf resort in

scotland over the weekend where coincidently the championship for the open begins next week. >> absolutely. and of course the other thing is by having the pomp and circumstance and taking the president to places like blenheim palace are filled with history, you also down-play of some contentious issues the british really want to talk about like trade >> and theresa may was the first foreign leader to meet with president trump at the white house i believe after he took office there so they do have perhaps a longer relationship than maybe mr. trump does with some of the other leaders just by virtue of that early visit >> it has to be marked with the same level of frostiness and terrible body language as it has with angela merkel but it hasn't certainly gone through the up and downs as with macron of france so tureeheresa may has sort of n

a stable approach towards donald trump, but note there's not a lot of close friendship between the two anyway whatsoever. >> very interesting stuff. that pomp is circumstance was something else i was on the streets for the royal wedding, so trump is there for the view of that beautiful castle and check please is next duncan just protected his family

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all right, we're back to oxfordshirre, england. and the blenheim palace as we listen to some of the bands playing. why don't we sit back and watch this scene ♪

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