regulatory environment, we'd be firing on all cylinders. i like goldman. >> michael, thanks for being here kay, thanks for being here as well doc, what have you got for us? >> trinity industries, i bought them during the show. right now the dow jones industrial average is higher by about 27 points. thanks so much for watching. have a great weekend "power lunch" starts now. good afternoon we pick it up right there where scott and team left it off i'm tyler mathisen, welcome to "power lunch." president trump tweeting up a storm on the back of his one-on-one with joe kernen, taking hits at the fed again accusing china and europe of manipulating their currencies again. trump saying he is ready to go all in with his trade battle with china our big interview, the fallout the continuing conversation straight ahead. and king dollar taking a big hit on the back of the president's comments the green back seeing steep drops. are we about to see a currency

war as well as a trade war and crossing the billion dollar mark and dominating video game streaming i think 999 million of that is my son and his friends getting ready to fire book at fortnight. "power lunch" right now. welcome to "power lunch. i'm michelle kbrus ocaruso-cabra the dow and s&p 500 are trying to avoid their first back-to-back losses of july. both still on track for their biggest monthly gains since january. you got all that tech and consumer staples are the best performing sectors. utilities and real estate are the biggest laggards, up by 0.8%. three movers at this hour. microsoft is rallying on its

strong earnings skechers tanking. president trump busy today doubling down on his tough talk on china in his interview with our joe kernen we we'll replay some of that in just a moment but first what the president has been tweeting about trade deficits and currency manipulation. >> reporter: among other things the president has currencies and the u.s. dollar on his mind. here's a pair of tweets from this morning laying out his argument the question is whether or not this is the president intentionally talking the dollar down or just laying out his perspective. the president says china, the european union and others have been manipulating their currencies and interest rates lower while the u.s. is raising rates while the dollar gets stronger and stronger with each passing day, taking away our big competitive edge as usual, not a level playing field. the united states should not be penalized because we are doing so well. tightening now hurts all that we have done. the u.s. should be allowed to

recapture all that was lost due to illegal currency manipulation and bad trade deals. debt coming due and we are raising rates. really so the appellate continuing to jaw bone the president, given the history of fed independence. we've seen other presidents in the past who have been frustrated with fed chiefs and their direction on interest rates, particularly in election years as this one is so the question is what is the president's desired outcome? does he have a pick number for interest rates he'd like to see? does he have a particular number for the dollar he'd like to see overall? ultimately this is a president who's about creating jobs and u.s. exports that's the central theme of his economic program here, and the president outlining that again today in those tweets, melissa. >> all right, thank you. as melissa and eamon mentioned, before president trump took to twitter, he sat down with an exclusive interview with "squawk box's" joe kernen, trade and the markets, economy, front and center

>> in the context of the stock market after the election, well documented it was up 1.40% or so it's consolidated those gains and held on to the lion's share of those gains does that go into your thinking if we're going to address any of these -- >> this is the time. you know the expression, we're playing with the bank's money, right? >> is there a time when you say things are going so great with the economy, i'm worried about the headwind of trade given that we have a tailwind with tax reform and deregulation and all these great things happening do you look at it as, well, we've got all these tailwinds we might as well have one headwind? or does there come a time where i need to pull back a little and get what i can but maybe not everything i want. >> i could have a much easier life if i wanted to do it incorrectly. it would be much easier for me sitting here i could just let all of these countries continue onward with these massive deficits i mean honestly, i don't want to

use the word because it's a highly respected show, but they are taking advantage of us we are being taken advantage of. and i don't like it. and i haven't liked it for many years. china, with china, $507 billion a year in deficits with the eu, $151 million. with mexico, $120 billion. who would think mexico mexico is making a fortune plus they have a tax, we don't have a tax they have a tax on top of that and the tax is almost 17%. and i could go through every country. i could talk about japan, i could talk about -- they're very good allies, but no wonder they're good the deficits, the money they're making off the united states. >> would you ever get to 500, though >> i'm ready to go to 500. >> with the midterms on the horizon? what if the stock market were to go down? >> well, if it does, it does

i'm not doing this for politics, i'm doing this to do the right thing for our country. we have been ripped off by china for a long time. i told that to president xi. we're down $507 billion in trade deficits how did it happen? they told me, nobody ever complained >> let's talk more about china and the currency market. joining us now is the founder of exonte data. are we in a currency war who fired the first shot was it the pboc or president trump here with joe kernen. >> so we've had the trade war brewing for a couple of months, right? this was sort of the verbal currency war that started the last day or so it's not that there's any action that's been taken but it's the first verbal effort to really talk the dollar down and it's pretty significant when we had something that smelled a little like this at davos earlier in the mere, maito

was mentioned in the press conference. >> how much is manipulation and how much of it is purely the market reacting to economic situations and interest rates and where they are relatively? >> well, that is certainly two important forces there are the interest rates rising in the u.s. because the economy is quite strong. normally when you impose tariffs, that also causes your currency to go stronger. if you look at what the other countries are doing, the european central bank has not intervened in the currency market essentially since 2000, so it was a long time ago. the chinese have had a history of manipulating catheir currenc >> are they doing it now >> their currency is weakening and they're hoping it doesn't weaken too fast. >> and it is weakening because the president has put tariffs on some goods and threatened more

and that is regarded as damaging to the chinese economy >> even the overnight move that was so signal? you see that as a signal like have at it. >> they pboc doesn't look like it's defending the yuan at all. >> i think what they're doing is a modern amount of smoothing they're trying to smooth it so it doesn't collapse. the president used the dropping like a rock term it has been dropping fast and they're trying to temper it. it's not them intervening in the market to get it weaker. that's traditionally what we understand about manipulation. >> i asked you about this yesterday and i want to play his response and see what you think. >> it's not that technology theft, it's the forced technology transfer. the third parts, the zte where we can implode these companies. >> i'm trying to game this out. >> right now we're converging on a point and they understand this we could take the whole thing down we could take the whole thing is built on a house of sand. >> what if they sell our

treasuries and devalue their currency >> they're just going to flood more dollars out they have 3 trillion in reserves and that would flood out in a second that's what their own people think about their economy. >> i thought that was a poorly reasoned response. the reason they have capital control is to precisely avoid what steve bannon was talking about there. but what i drew from that and to the grow that you believe he influences or is influenced by the white house is he doesn't care what if the president doesn't care or what if the president doesn't care about the onslaught that would happen if the chinese continue to devalue their currency >> yeah. so the first thing i would say is that, okay, clearly china has engaged in unfair trade practices for decades. that we can all agree about. therefore, some kind of response to china is very warranted i think that's very different from the european union and so forth. in terms of what the currency is

doing right now, we have a fairly orderly decline it's bigger than we would have thought a couple of months ago, but it's fairly orderly. they have done a lot over the last couple of years to make sure they don't have a panic, where they don't have this massive -- >> it's not 2015. >> it doesn't feel like 2015 one thing you can look at with china that's very interesting is they have allowed their own interest rates to fall quite a lot in the last two months if they were super worried about capital flight, they would not allow that to happen so this is something they are under control of to some degree, it hasn't spun out of control yet. they are not manipulating directly, but they're allowing to move a decent amount. >> what about his underlying premise. if people would take out money, how much would leave >> i think we saw in 2015 and '16 that this is something where we're talking about hundreds and hundreds of billions of dollars in a short period of time. if they lift the capital control, this currency could

move very, very significantly and then obviously trump would have a much bigger problem then it will be much faster than a rock. >> it's jens or yens. >> we'll call it yens. >> yen is a currency, right? see? it's a currency but not really central right here right now steve, let's talk about the president's comments today, which seems to have ratcheted up the pressure on the fed. >> i don't want to toot my own horn but ask you guys which of the guests yesterday was concerned about the president ratcheting it up and took it most seriously, this issue of the president commenting on the fed. >> ou. >> i think president trump has gone into new and more dangerous territory. >> and randy yesterday said as a one-off he's not worried about it. >> i said one-off is a big deal. i said it's a slippery slope at

8:35 this morning. when did that tweet come out, something like 8:55, 20 minutes later. just from a literary standpoint, i know comparing the trump tweets and literary is make an oxymoron, but let's go down that road yesterday he complained about fed policy relative to trade today if you look at that tweet, he is specifically urging the federal reserve to an action that's a different world he's also linking federal reserve policy to the fiscal side, the ability to pay debt as well as essentially saying the federal reserve needs to be a partner in this trade war. and i think we're opening up -- i think a can of worms is an understatement relative to what's being opened here maybe pandora's box. >> he is doing all the things for why everybody believes the central bank should be independent from the federal government because in historically what do federal governments want you to do they want you to monetize debt

they want you to weaken the currency for competitive reasons, right >> but let's point out that president trump is not economically wrong in the following sense, right if you end up putting a tariff on and the result is a devalued, purposeful or not, of the competing country's currency, you end up creating a new equilibrium price. so soybeans are falling but the yuan has weakened. you could have a further offset. so you put these tariffs in and they have no effect on the real price. >> and he's not wrong about the idea that interest rates are rising at a time, one, when old debt is coming due, but that worries me less than the fact that it is, two, coming -- rates or rising at a time when the federal government is going to be borrowing a hell of a lot

more. >> and that was because of the tax cuts, which were supposed to pay for themselves, according to the treasury secretary. >> but not immediately. >> but at least at this point they are not where we are is a slippery slope an i think president trump is getting a kind of -- if he didn't get it already a lesson in international economics in that it is extremelycomplicate in the sense of tariff, retaliatory tariff, retaliatory devaluation, interest rates come into play here because if the fed were not to raise interest rates as much as otherwise thought, that would put downward pressure on the dollar, which would counteract what's happening. so it is a can of worms. and it's the reason, by the way, i keep going back to this. why was it done the other way before why did we sit down and negotiate and, by the way, we did get the chinese to stop devaluing the currency we did that because we didn't want to open up this pandora's box. >> yens, a final thought last word. react to what he said. >> i think this is definitely a slippery slope

it's clearly breaking g7 protocol so this is something that's very upsetting. it could lead into a problem around all tariff negotiations, so it's all connected and makes things more difficult. >> thank you, guys. >> yes let's more about the ripple effects from the president's comments and whether or not his tough talk will help or hurt the effort to get trade deals done joining us is the u.s. managing editor of "the financial times" and a cnbc contributor hi, jillian. >> hi. >> you've heard our conversation thus far what do you make of the current situation and the president breaking with the protocol about not trying to influence the fed? >> i think it's fascinating. i think it's also important to think about a little detail that happened when powell actually became the fed governor chairman the very first thing he did on his first day was to entirely break with fed protocol himself and make a video directly addressing the american public no fed chair has ever done that

before and that's very indicative, because we have a chairman right now who is very much his own person who is willing to be plain spoken we know that from his recent press conferences. who is willing to say it as he sees it and is also quite strongly independent having spent time with him over the years, i don't think he will take this lying down he will not necessarily challenge the president directly, but i think what the president has done has probably stiffened the spine of most of the senior fed officials that they are determined to be independent and i suspect that chairman powell will actually go out and talk to the american public at some point if this pressure continues >> directly, interesting what do you think it means for trade talks that are going on right now, and as jens pointed out, a total departure from what is typical from the g7. >> it's been shocking and what extraordinary timing steve mnuchin is going to be meeting with his counterparts this weekend i mean the rest of the g7 is

exasperat exasperated, shocked and what they can do to these extraordinary events the one thing that is clear is that the europeans are not going to pack down in any bay quickly because they're worried about reactions from their own electorates. so i think we'll continue to see a continued fractured time at the guil7. we've had trade wars we have verbal currency wars we don't have evidence that the chinese are intervening in this currency war the question is are we going to see this turn into capital war where the chinese may start saying, you know what, we hold a lot of your treasuries and a lot of your debt there's no reason we need to keep holding that indefinitely if we see that threat come through at the same time that the fed is raising rates and the u.s. is issuing more and more

debt, we may be starting to slide into a very nasty situation and a pretty hot summer. >> well, the chinese wanted to retaliate, they might have to go that route what's so remarkable in that interview i thought was that the president was perfectly willing to slap tariffs on all $500 billion of imports that the u.s. takes in from china and the market barely nudges i'm just wondering in terms of the negotiation with china, there's nothing scheduled right now. they said we are not going to go back to the table unless china commits to fundamental change and yet there are all these threats, there's talk about a currency war it sort of backs them into a corner, which i would imagine they don't like. >> i'm sure that $500 billion was chosen because it's a nice round number who knows if it will happen or not. one reason the markets are not overreacting yet to this tough talk or tough tweets is because we do have a history of the president coming out with a strong statement and then rolling back so many investors don't yet really know what to believe at

the moment and they're going to be seeing what actually comes out in the coming days in terms of whether this actually turns into action. but here's another very important issue to look at, which is we've just written a story about this on the "financial times" on our website, which is capital expenditure, cap ex. credit suisse has just said a large cap exnext year. we had a pubig growth this year that's helped to boost the economy. but if we see this talk about trade carrying on, trade tariffs, trade disruption, where the place will really start to see impact is on the cap ex. >> jean-claude junker is coming for a meeting. i followed him a lot during the greek financial kriescrisis what i thought about his influence is everything he told the greeks turned out not to be true

not that he was lying but he seemed to bring them down a prim rose path. he seemed to think he had a mandate that he didn't promise them this, it's going to be fine and it wasn't. and then there was the germans how much do we believe what he says today does he have any credibility, especially after what we saw recently when he was stumbling >> does he have the credibility to eyeball the president and cut some kind of deal? almost certainly not, because european political structure, very, very fragmented. does he have the charisma or the ability to go out and make bold tweets to actually capture the public imagination in europe absolutely not he's a very opposite of donald trump in terms of his personal style. so yes, we will see various diplomatic measures. but the reality is that europe is very fragmented and does not know how to respond to the president with his comments on trade. >> they can all join the club. thank you, gillian. >> thank you. so with all of president trump's comments swirling around, will the markets be able to focus on corporate earnings

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david, let me begin with you why is the market reacting so benignly to so much seeming turmoil that began earlier this week with the putin press conference and then the tweets and the interview with joe kernen why is the market doing as well as it is >> i thought you were going to tell me that, tyler. i have to tell you what's going on it's very difficult to predict i'd say we're -- i feel like we're at an inflection point you've got a lot of strong underlying economic data at the same time, it's very light cycle, the fed raising rates, trade war issues. as the fed continues to tighten and we see tightening outside of the u.s., you're going to see ha liquidity come out and you're not going to see this buy the dip mentality as much. again, i thought we'd changed course earlier in the year when the market was reacting more negatively to macro issues, but

now we've gotten past that but i think ultimately we are late cycle the fed is raising rates as we've heard with your previous guests, we're not likely to see that change course just because the president doesn't want them to as that continues, liquidity comes out, you'll see more volatility. >> let's talk, cole. you say you're more bearish on the broad market averages or indexes. why do you take that position and why do you have no worries on trade, that it won't affect a lot of american industries like tv producers or home builders, even though some of the components of home building, like lumber, could be affected by tariffs >> it's a great question, tyler. it's a huge question, i'd say: you know, we're not late cycle on the economy buffett with dimon said we're in the sixth inning the big hitters are coming to the plate. we completely agree with him on that he then went on to say do not

confuse the stock market with the economy. that is where people are wrong so, for example, people are making the case we're late cycle in the economy and, thus, maybe the stock market we say the opposite. we're late cycle on the stock market why is the market not bothered by this? because it doesn't give a damn about trade. it gives a damn about revenue growth use netflix as a perfect example. all it comes down to is are you growing your revenue if the famed, glorious financial euphoric companies in the s&p 500 grow revenue, this market will go higher if that duck is cooked, we are going to have some very frustrating markets for broad indexes, like you said, tyler, if i'm in the home building business, yes, lumber is $6 more expensive on a $1500 payment per month, which means it's nonmeaningful to all americas that buy homes at the age of 30 or 32 today. we're up 8% year over year

inspect homes compared to last year people treat this like we're late cycle. >> david, let me turn back to you for a final thought there. are you worried about trade or not? >> tyler, i'm more worried about what the fed is doing. i think trade is an issue. i think it could potentially become a bigger issue, but at this point it's more of a headline issue i'm more worried about what the fed is doing and the impact of removing all of this liquidity from the economy that has reached levels we've never seen before, the impact that has on the economy and the impact that has on the stock market, absolutely those are things i'm worried about. >> so you kind of agree with the president there. am i taking it one step too far? >> well, no. i don't think -- the fed clearly has a mandate to raise rates we've got full employment, core pc at 2% their mandate is met, they have got the green light. i'm just saying we're coming out of an extended period of tremendous liquidity we've never seen this before >> yes so you're watching how it

unwinds. gentlemen, we have to leave it there. i'm sorry to interrupt appreciate it. cole, david, thank you all right. who should decide what children eat and drink? their parents or the government? one city prohibiting restaurants from serving soda to kids. the great nanny state debate, next on "power lunch." greatness of an suv?

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cnbc news update secretary of state mike pompeo met earlier today with south korea's foreign minister at the south korean mission in new york they were joined by ambassador nikki haley. later pompeo told u.n. envoys that north korea must take concrete actions before u.s. sanctions are eased. >> the countries of the security council are united on the need for final, fully verified denuclearization of north korea as agreed to by chairman kim strict enforcement of sanctions is critical to our achieving this goal. >> meanwhile residents across central iowa are cleaning up after those tornados that hit yesterday. the hardest hit area appears to be marshalltown where a tornado flattened buildings, damaged the court house, the police station and a hospital. and uber will start offering a snack service to hungry passengers they are teaming up with a startup called cargo to install boxes of products in cars. passengers can make purchases

through a mobile app that's the update. it certainly has evolved from the days where it was just if a stranger happened to be in the neighborhood, they can pick you up and take you where you want to go. >> now there's a minibar in the uber thanks, bill restaurants in baltimore can no longer sell sugary drinks to children a new ordinance says soda cannot be offered on the kids menu, only water, milk and 100% fruit juice. parents would have to order a soda for their children if they wanted them to have it. >> well, of course that is ridiculous. >> i think it's ridiculous as well. >> first of all, fruit juice has piles of sugar in it already and regardless, it's up to the parent and then think about all the bureaucracy this entails the restaurant can be fined $100, according to the new ordinance. you're going to force this, really are you going to put inspectors to see if kids are drinking the soda, if it's on the menu? i mean give me a break and the government has been telling us for years what to eat. >> are we only talking about fast -- >> all of them.

>> every single restaurant not every restaurant has a kids menu. >> i'm reading the press release and it sounds like all restaurants. by the way, the government has been telling us for decades what to eat do people get skinnier >> not in this country. >> no! coming up, what's hot, what's not first, general electric not hot. worth half as much now as it was a year ago when will the turn-around happen, or will it. on the other hand, the video game so hot that it smashed through a billion dollars in revenue. we will have both of those ories coming up on "power lunch. 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.

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shares of general electric down about 4%. they beat their estimates but trimmed their cash flow target again and ge saying it is seeing strength in all businesses except their power business, again. what's ahead for ge and its investors? joining us is a big ge bull, scott davis. he has a $27 price target on the stock. it's currently at $13. scott, good to have you here pretty brave of you. you've owned this october.

>> it's terrible the stock is down 50% in the last year. the power business continues to slide, as you said cash flow continues to slide the rest of the business is actually pretty good. >> you have a buy on it. >> yeah. >> so you thought something would happen obviously what went wrong, and are you patient enough to wait for whatever it is you thought was going to happen to happen? >> our target price is a two-year target price. i do think it can get back to the price we were just at a year ago, i do. i don't think the fundamentals were permanently impaired, power is going to be tough >> what's the problem there? >> combination of lots of things people got real excited about u.s. gas and so you add a lot of capacity around really all the major competitors. and then demand -- >> the demand has dried up. >> yeah, it's gone and it's gone for another two years. >> should we be further concerned about the dividend, which they recently cut? >> no. >> there's no more cuts. you're confident you're not worried at all?

>> no, i'm not worried about the dividend at all. if they can't execute at a level of $6 million and above, this management team needs to be replaced i don't think we're going to get to that point. >> the stock seems to trade on the power of business and you think it's dead for the next two years, so why isn't this dead money? >> because it's a $13 stock. you have an asset value two to two and a half times current price. remember there used to be times where you'd buy things like this power probably bottoms by the end of this year, so i don't think it gets worse in 2019 versus '18. >> you point out that the history of industrial companies that have gone through transformations is pretty positive. >> yeah. >> that they really do turn around. >> yeah. >> so take me through some of that history, which is part of your thesis. >> it is the thesis, otherwise it's dead. we have seen this at honeywell we saw it at honeywell in fact i went through the misery in honeywell in 2003 when

i was liking that stock. we've seen it three or four industrial names the last 10 or 15 years usually they mistake the cyclical decline for a secular decline. in this case it looks like there's some secular challenges, but i don't think it's permanent. i don't. i don't think tomorrow we're going to wake up and say we don't need electricity anymore. >> there's an opportunity cost to owning ge obviously you choose ge and you're not going to choose eanother industrial in your coverage universe, are you the most bullish on ge or is there another industrial that could offer pretty decent returns? we heard from honeywell, not exactly the same space, but they raised their forecast for the third time. >> luckily we have a buy on honeywell as well. you know, that's a stock we've gotten right over the years. but i think that's a very fair point but also to my point

earlier, it used to be if you wanted to make a lot of money you bought honeywell at 19 or buy ge at $13. that's the reality if you want to make a lot of money in the s&p, you've got to buy this when it's really at its tail. >> thanks for coming on and making the case. >> happy to be here. >> scott davis. to the bond market we go rick santelli tracking the action at the cme. >> hi, tyler kind of a wild day in treasuries today and much of it may bow a bit koucounterintuitive if you look at twos, it's up one basis point. but here's where it gets interesting. look at one week of 10s. we're up five basis points on the week 30s of up nine basis points on the week if you look at what's going on on the yield curves, 10s minus

2s zoomed a bit and 30s minus 5s, they have zoomed even more up at $26. the dollar index is the one that makes the most sense especially considering some of the comments made by the president. but that's a one-week chart. last week we settled at 94.67. but it fell from a level that was above 95.50 and looking to be making a challenge going all the way back yone year to july when we saw it close at that level. one of golf's biggest tournaments taking place today we'll go live to scotland for an update on the british open we'll have much more of our exclusive interview with president trump and the impact it is having on the markets. stay with us

round two of the open championship over in carnoustie wrapping up. tiger woods finished day two with an even par 71 to remain a contender. that matches his score from yesterday. as we head to the weekend, the memory of historic breakdown nearly 20 years ago by the french golfer will be front and center joining us from the open is jimmy roberts of nbc sports. jimmy, welcome good to have you with us i see you look a little bundled up there let's talk about carnoustie. the british open is interesting because it goes on a rotation of courses over the years, of which carnoustie is one. where does carnoustie rank on the difficulty spectrum? >> well, tyler, all you need to know is its nickname, which is car-nasty. jack nicklaus maintains that carnoustie is the single most difficult major championship golf venue, and that the closing

three holes are the toughest three closing holes in golf. >> what makes it so hard >> well, there are a number of idiosyncrasies about a number of the holes but basically it's the weather. and that's one of the things that distinguishes links golf from the type of golf you and i generally play back in the states and other places in the world. when it blows here and when it rains here, it just gets avage you know, the rough is very, very high. if you're a bit wayward here, you're in deep trouble the bunkers are just savage. there are 112 bunkers on this course and a number of them are named for people whose hopes of major championships have disappeared in the sand. >> and a lot of them are those pot bunkers. you almost have to sometimes hit backwards to get out of them take us back 19 years ago to jean van de velde's collapse, which you covered and saw

firsthand. was that one of the biggest moments in golf memory >> it's one of the most vivid memories i certainly have from a career of covering sports. i mean he had ray three-stroke lead standing on the 72nd hole as i mentioned before, the closing stretch is very, very difficult. he hit a drive off to the right, actually over onto the 17th hole and got very, very lucky because it was playable. where he got into trouble was he hit his second shot and it actually hit the railing of th grandstands and then bounced back down into the high rough. from there he was in the water and from there -- anyway, long story short, he actually made a really, really good putt to make triple bogey 7 and that put him in a playoff with justin leonard and paul lawrie. paul lawrie was a local guy. paul lawrie started the day ten strokes off of the lead and ended up winning the open championship it was a stunning turn of

events. >> where is van de velde now is he here today >> if you look over my left shoulder, he's actually working as a broadcaster it's funny, i was here a couple of years ago for a social event and played golf on this course with him he said to me as we walked up the 18th hole. he put his arm around me he said, i have my name here on this bridge. >> he will be remembered a lot longer than paul lawrie is and already is for that momentous collapse let's talk about tiger, he is even par right now, six strokes off the lead how is he playing? and i know you have had a history with him sometimes you've been -- he's been happy with you, sometimes he hasn't been happy with you. he is a different guy. how has he changed over the years and whereis he now >> well, i think he's in a very, very good place.

first of all, let's talk about his golf i maintained before he came back i thought he would win again i don't think he'll break jack nicklaus' record which is 18 major championships. tiger has 14 i do think he'll break sam snead's record, which is 82 wins on the pga tour. tiger has 79 he is hitting the ball from tee to green actually in the fairway. his iron game is as sharp as i've ever seen it. he's a little inconsistent with his putter and his driver. but i think personally, he's in the best place that i've ever seen him i've known him since he was a teenager i think he's obviously been through a lot. he's in a -- i think he's in a pretty good place right now. >> all right, jimmy, thank you very much for your time today. jimmy roberts, one of the best story tellers in sports broadcasting we'll be watching you and the rest of the team as live coverage of the 147th open continues today on golf channel and this weekend over on nbc another kind of competition, the fortnight phenomenon

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the fortnite phenomenon hit agnew milestone for ingame revenue as it's called let's go to our resident gamer jewely aria boorts zbloon developer ep iks games has a epic hit in fortnite since the launch it tagged $1.0 billion in ingame purchases. this is an unusual level of success for an independent developer. thanks in large part to the battle royale mode where 100 people can play at once. ingame purchases for fortnite grew from $270 in april nearly $320 in may according to superdata. the battle royale game mode helped popularize is the most popular jerp on is it twitch with nearly 700 million watched in may alone with fortnite

countying for 83% of the streaming hours. public gaming companies are jumping ones band wagon. black ops iv and eia battlefield five both games launching in october include battle royale moedes but to keep it up for fortnite epic needs to innovate. viewership on twitch dipped for the first time in june before setting records in july because of the mu season of cone according to research. pressure for all of these game erps and game moedes to keep on innovating back to you. >> julia, thank you. julia boorstin. the fortnite craze isn't losing steam how are gaming stocks cashing in on the hype. joining me is timothy oshae at vice president at. >> thank you for having me back. >> when you look at the performance of the video game stocks over the past three months they don't seem to show any pressure from the fortnite

phenomenon why have they been immune sthe issued second quarter guidance when fortnite was if full swing no impact there. >> the gaming stocks have surged since the second quarter wsh completely recovering from any pressure we saw in march around fortnite since april 1st the start of the second quarter, act vision blizzard 49%. ubi soft up 15%. active vision like yea they reported strong first quarter results. the view is it to are theant can peacefully kpoe exist. it's not can'tablizing businesses in fact expanding the market fortnite could be more of a spoil they are holiday but remember. >> how does it expand the market is it a different kind of gamer than who plays on ea or active vision game? if i told you that there is a competing streaming service out there that is going gangbusters in terms of movies and not

having any impact on netflix you say that's no sense. yet this is the same phenomenon we see with the gaming stocks. >> yee yeah, look we ushered in tens of millions of new players into competitive multiplayer gaming a lot of younger gamers female gamers and then maybe a lot of lata little brothers and sisters or people who haven't played in a while. but the fortnite success underscores the popularity of video game content underscoring how all of this is becoming mainstream and looks like of an opportunity as we saw in the first quarter, the games have distinct audiences just because one is playing forptant doesn't mean they are not playing is else but soefrl results are good. >> i get the point you are making the market can grow in size we were showing viewers a graphic we have on the wall that says 574 million hours of game play watched in may on the right-hand side of the screen there.

what is the total and how much bigger can that get? terms of the numbers of players that can join? because the one thing as you can't put more hours in day, right. one gamer totally maxed out, i guess this person could not sleep eat or do anything but you know there is a certain limit from what i remember from my science fiction books. >> just remember game something taking market share from every other form of media. it's growing faster than movies tv taking market share away from all of them we continue to track larger audience sizes, expanded addressable markets. you have more people spending more time. one of the things that fortnite has done really well is it's really deeply engaged users. so it's really captivated a large audience the game will continue to be strong through the end of the year we have seen i think julia referenced a dip in june on twitch but over 600 million hours of.

>> ludite questions are some people watching and not play going? >> look, there is always a chance but this is the type of. >> sounds like a no okay. >> there is a lot of passion for video games out there. people are playing and watching. >> all right tim thank you appreciate if it. >> coming up the second hour of power more reaction to the exclusive interview with president trump. joe kernen did it. even the president himself tweeting about it. plus the one industry affected the most whetrp een umtwts on trade. power lunch will be right back f. but for cyber criminals it's plenty of time to launch thousands of attacks. luckily security analysts and watson are on his side. spotting threats faster and protecting his data with the most securely encrypted main frame in the world. it's a smart way to eat lunch in peace. sweet, oblivious peace.

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i'm michelle caruso cabrera. china trade wars and the fed president trump weighing in on a host of hot button issues. and joe kernen's big interview with him we have the highlights. plus, is the u.s. actually making progress with mexico on a trade deal and when it comes to trump, trade and tweets, no other area of the american economy is more vulnerable than this we'll tell you which one it is wall street set for the biggest and most important week of the summer, your power lunch play book is on tap as the second hour of power lunch starts right now.

and welcome to power lunch i'm mels aire lee stocks racing earlier posting lossen and modest gains remarkably stable given the preponderate's comment tear about trade tariffs the fed you name it and a big week for earnings here. the dow up by 17 points. s&p up by 1. ntds higher by 13. looking at movers microsoft jp morgan goemds, right now they're leading the dow. sintis the uniform company leads the s&p 500 and nasdaq 100 tyler. >> welcome, everybody. i'm tyler mathisen we begin in washington where president trump's interview is making waves in from capitol hill deep in the currency markets. his tweets following the interview making headlines and eamon javers is live at the white house. kayla tausche is in the washington bureau. eamon. you're up first. >> tyler my apologizes i'm doing it out of the noektd because i got off the phone with the white house official and wanted to relay new information. process. part of what's driving the president's focus here on the fed over the past 224 horsepower

starting with the joe kernen interview is that i'm told by a white house official the president is worried that the fed is going to raise rates twice this year. and the president by his very nature li nature is a low interest guy that's sort of what his concerns is all about i'm also told that the president ultimately is not telling the fed what to do and that he gets it in terms of the fed as independence but simply expressing his opinion long held opinion as a builder. i'm also told aides are advisesing the president at this time to simply let the fed do this at this point they are saying the fed is doing it right let it happen the sooner it happens the sooner it's over. that is the sooner the rate hikes will be over and aides around the president don't believe anything the fed is going to do is cooling down the economy to a degree it will be a political problem for the president or the economy going into the mid-terms elections new reporting there from a white house official also, simultaneously, we have this other story, breaking this

afternoon, which is "the new york times" first reporting that michael cohen, the president's former attorney secretly recorded tapes of the president of the united states before the election in which they were discussing potential payments to a former play boy placement named karen mcdougal and payments related to keeping her silent i was talking on a phone with a source familiar with that. and i was told two important things one is the president was unaware that he was being taped at the time that cohen made the tapes those are secret tapes in the sense the president did not know the taping was happening the second thing i'm told is the president's legal team is not aware of any additional substantive tapes here they are aware of additional tapes of the president that were apparently made by michael cohen. but they don't contain anything substantive. i'm told that what they're aware of are tapes in which the person says -- in which the president says well, michael, please call me back.

that sort of thing ultimately they're aware of multiple tapes but only one substantive tape. that's not to say, however, that more sbont substantive tapes don't exist. it's just the president's legal team at this point is only aware of the one substantive tape. tyler. >> i don't mean to nitpick here, eamon. >> no, go ahead. >> i'm just curious, you know on one hand the president's staff or the people your sources are saying the let the fed do what they've been doing let them get it out of the system quicker that will in the end be better. but on the other hand, if they are -- if white house officials are expressly saying to you that the president is worried the fed will raise interest rates two moore li more times this year, that feels to me like express pressure on the federal reserve not to do something. >> right well it depends -- i mean be, it's express pressure in the president's mind on the president. the question is whether or not he expresses that pressure on the phone with the fed chair that sore of thing trying to make them do what he wants

i'm told that the president's goal here is not to put pressure, acre to this white house official, not to put pressure on the fed but simply press his opinion. >> but the white house official is saying the president is explicitly worried the fed is raising interest rates two more times. that's a communication. >> that's right. >> one way -- it may not come directly from the president's words into jerome's powell's ear. >> it's a communication from a white house official to me and me to you. therefore is that the president putting the pressure on the fed? the fed watches tchgs too. >> that's a tough one. >> all right eamon thanks >> you bet. >> the expectation is the two rate hikes this year. >> the second one this year or not the second this year but the second one after this next one is not fully priced into the markets. the question here is if they do not move on that rate hike. >> the fourth, december. >> in december, clkt then will market participants look at this in a politicized view oh, he suck coupled to the

pressure from the president? i think that's a reality. >> the psychological analysis you can do the permutations are endless what if we see weak economic data and they raise anyways and you think they did that because they're trying to tell president trump we're raising and you can't pressure us. it goes on and on. all right. other topics related to washington kayla it at the dlirpg alpha larry cudd low talked about obstacles with china but also opportunities with mexico and the ongoing trade negotiations kayla, where do we stand. >> michelle it was that comment about mexico plus optimism from the commerce secretary on cnbc yesterday that got investors buzzing about a deal potentially advancing next woke when the economy from mexico visits washington on thursday the white house says the u.s. is pursuing both a bilateral deal with mexico and a new trilaermt nafta. sources say the later is mexico's preference. a u.s. team last week met with

mexico's incoming president. and according to sources discussed trade as well as immigration and potentially tying the two together the incoming president won't be inaugurated until december but the country's congress reconvenes on september 1st. so that has become an unofficial new deadline in the nafta talks. meanwhile, the china fight could linger on with president trump saying he could put tariffs on all chinese imports. >> did you ever get to 500 though. >> i'm ready to go to 500. >> at the end of july and august could hit $216 billion in imports. yesterday ways and means chair kevin brady told reporters to my knowledge no discussions are occurring and no discussions are planned. he said to expect a protracted trade war unless the leaders met. larry cudd low telling axios that china's president wants to drg out the dispute until after the mid-terms in the u.s

meanwhile international financial officials previously told me that discussions in beijing centered on a potential resolution to the trade dispute at the end of the year, tyler. this could go on for quite a bit longer. >> kayla thank you very much let's bereave in steve leastman and our analysis annual petition american enterprise institute and a cnbc ibt krer. steve what do you make of the headlines that the president is worried about the fed raising interest rates two more times which some people think is a foregone conclusion and others think is maybe not so certain an outcome. >> all i can do is put in the framework we talked about in the last hour which is step one was the discussion with joe kernen general criticism of the fed step two was the tweet this morning specific urging them on policy and now step three here is specific criticism about specific fed plans >> yes. >> he has gone down the rabbit hole, which is the rabbit hole that every adviser to every president who i have known by

the way going back to i think 1992 has advised the president not to do. >> let's be clear here it was not the president per se who said this to eamonafters it was a white house source saying that the president was worried about two additional hikes. either way, i interpret that. >> it would be another level. >> go ahead, jimmy. >> no, wait we have seen a version of this before in the 1970s richard nexten pressured the then fed chief arthur burns to keep monetary policy easy going into 1972 elections. listen, he didn't give a speech about it though he did tell burns that in person what he had was the aides going out and talking about it there were leaks to the media. leaks to the media saying the president was unhappy maybe they should add new fed members to the board of governors that maybe the fed should have less power and the president should have more influence and lots of leaks. they used the pressure that way to use as leverage against the fed. >> and that ended ultimately it

worked. >> pardon. >> that ended well didn't it. >> it endwood a catastrophe as you well know. >> the dollar sinking now lower if we intrabring bup the intraday chart upon eamon's report as he looked at it to suggest this is causing even more pressure and it's being seen tyler that perhaps -- there it is. >> it's a remarkable move in the dollar index seeing a more than 1% mover from the time trump gave the comments yesterday in power lunch to right now. what do you think the fed does gillian at financial times who we interviewed seemed to think the fed will go public jerome powell will speak directly to the public in some format to defend the fed independence is that the card played here. >> i think there are people who can speak for the fed before the fed speaks. >> run that by me again. >> i'm thinking janet yellen ben bern naeng allen green span is also a former fed chairman who could

speak up you might expect them to speak at some point. i think powell wants to stay out of this if he can. i think increasingly it's becoming difficult for them to do it. i think the reaction of the federal reserve is one where they keep going and stick to their knitting in terms of their intentions for this year right now that december rate hike has now become a political litmus test for the federal reserve. >> yes. >> and what's really interesting is president trump may have made that second rate hike more likely now because the federal reserve. >> that was your point. >> the federal reserve might have to do this. >> to prove. >> to prove independence. >> can we just highlight now crossing the wires u.s. dollar index slipping to four-day low after cnbc reports the president is worried that fed will raise rates twice this year. >> trump he likes. >> he is getting what he wants four-day low by the way is basically one-year low for all intents and purposes

but gym, a goo good point. the more the dollar falls maybe the more he does it. >> right. >> yeah. >> i mean the guy -- the guy has no trouble with you know oh everybody is upset about a policy let me say it some more. >> what's crazy here, i have been telling republicans for two years, including the current director of the national economic council that they need to factor in the fed when thinking about the reaction to the trump tack cuts and the trade policies that the fed has a vote on economics. and they better think long and hard about who they put as fed chairman and they put in the institutionalist who who is not listening to novel they ares about policies and high pressure monetary policy. the policy institutionalism that's what they get for good or ill. >> jimmy, were you surprised that in the two days of hearings with powell there was really no pushback i want to say from the

democratic or republican side about the state the intentions of the federal reserve to gradually raise interest rates there was maybe a little bit on the edges. but a, given the previous concern by republicans about the fed being too low, that didn't -- that wasn't out there at all and maybe some potential complaints from democrats about the effects of jobs or wages from the fed raising rates i was surprised that over the two days it was not an issue i think that president trump now is making fed policy an issue -- a political issue right now. >> listen, i was more surprised i didn't hear more from democrats. because it's sort of become a thing on the left that we know. >> yeah. >> rates don't need to go anywhere we don't need to worry about deficits the fed needs to stand pat it's left of center intellectual that's the growing consensus i was surprised i didn't hear more about that. now i think we have all of a sudden we have a highly politicized fed.

>> let me jump into the political area, jimmy if i might and get your thought and steve's as well. it seems to me the president is the most unorpgt docks republican maybe ever because he goes against the orthodoxy of the party on trade number one. he goes against the orthodoxy of the party on apparently wanting a strong dollar. a strong dollar in the interest of the united states generally shared by both parties but the gop particularly and the gop has been strongly against easy money policies under yellen and bern nangy and so forth and the president has run counter on all three of the area does it matter. >> protectionism, easy money welcome to the new supplyside economics. i think -- i think, listen if the president is taking a party in a new direction, then there needs to be some i think thought about what that means and how all the pieces fit together, not just sort of a tweet and a few

offhanded remarks in an interview. unfortunately i don't think the president thought about how the pieces fit together, how his trade policy, what he says about monetary policy, how it influences trade, the dollar, what his tax -- you know how the fed might react to lots of -- lots of stimulus late in expansion. >> one final thought here. >> well jimmy is in washington so he knows more about this than i do but on the trade issue and now on the issue of speaking about the fed, there were supposed to be two guys in the white house that were supposed to keep the president straight on these issues mnuchin and kudlow pch i don't think these three are being effective. it strikes me the loss they had on trade because of you will the connection to all this and interest and current now rierps a loss on the fed these guys are not winning the internal battle from what i can

see. >> how would things be different if they weren't there from if they are there now. >> it's one of though questions. i'm looking at the cards and i don't see too many victory for the kudlow mnuchin the camp. >> thanks guys. >> were due respect to my colleague larry kudlow. >> on power lump earnings season kicks off monday the strong earnings rally the market to new records are we worried about the trade tensions dragging down. we debate that soybeans in the cross mayors china's retaliation against the tariffs could mean big trouble for farmers cross the midwest. and $8.8 million that's not bad for ten days work who did it we got the world series of poker main event winner coming up live straight ahead on power lunch. we'll be right back. in jellyfish. in clinical trials, prevagen has been shown

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it gives you super fast speeds for all your devices, provides the most wifi coverage for your home, and lets you control your network with the xfi app. it's the ultimate wifi experience. xfinity xfi, simple, easy, awesome. greenspan. welcome become wall street getting ready for the busiest week of summer about 30 companies set to report earnings what to expect at brad mckiln chief financial officer with commonwealth network and our cnbc contributor good to see you both tim i'll start with you. we were talking about how the rising dollar was a earn concern. maeft movement from the dollar in the past 24 hours what do you think is the take away there are obviously companies and sectors that will get a

reprieve from the dollar weakness. >> look, i'll stay away from the politics no one wants to hear my politics any way. a weaker dollar and less fed are more positives for stock market. as we go to the earning season, the bets have been pronounced i would say top and bottom line. this is largely a good thing yes, if i think about what's going on with the airlines, a massive rally the last couple days emerging markets up 139 5% today. there are dollar sensitive industries and a lot of people weeks aig were talking about the strength of dollar at 95 and the dixie i was concerned about breaking a resistance level and for now it's forestalled. >> how does this sort of turn of events when it comes to what trump is saying about rates. about the dollar, how does that impact do you think the commentary out of earnings season we expect earnings to be solid it was the comment tear we were concerned about, brad. >> i think when you look at the dollar, that's been one of the media talking points about

weakness going forward what are we seeing companies saying you know a lamar proportion, half or more of the s&p earnings come from abroad and the stronger dollar mitigates that the lower rates will simply mean some of the worry base debt refinancing, some of the worries about debt service go away as well i think it's positive overall. >> you know, tim we show a very busy calendar here in terms of earnings which one is going to be sort of your bell weather. >> i'd prefer to talk about stuff in the cross hairs and not popular. but the auto stocks look interesting. gm reports wednesday they're somewhere about 675 a share for 2018 sequentially a bit lower quarter over quarter but the stock is absurdly cheap. and it's you know about 5.5 times 2019 they are continuing to execute on a long-term plan and autonomous i think the margins are very the are the supportive to the guys are executing both efficiency and

even if we are not at peak auto we are close. >> we a guest on that said they would avoid utilities and real estate you ai like utilities and real estate make the takes. >> it takes two horses for a horse race i'm worried about the defensive aspect when you see the fed looking to raise rates. when you see the president talking it down, that obviously creates some concern and the question is -- wove already seen resistance on the long end to rates going up setting aside what the fed will or won't do, what does it mean for the longer term rates rain be the ten year or 30 year rates? when you evaluate that in conjunction with defensive stocks, the trade on interest rates, i think that's an interesting place to be, because there is more upside than down side given the balance of risk. >> brad thank you. tim thank you. you're number two in our contest. just a smidge behind the kicker nick lowry. >> better than last. it's a long season, tyler. >> you got it plan coming up a $5 billion fine from

the eu hasn't slowed down google parent alphabet. the stock within striking distance of all-time highs still time to get in we will debate and last year the u.s. exported over 2 billion buberls of soybeans about a billion to china. this year that number will go down we will lkta to the north dakota head and the impact on farmers, that and more coming up on power. with tough food, your dentures may slip and fall. new fixodent ultra-max hold gives you the strongest hold ever to lock your dentures. so now you can eat tough food without worry. fixodent and forget it.

welcome back it's time for trading nation today we look at alphabet. the shares near all time highs ahead of the earning report on monday after the bell. are new records head for the internet stock david sea berg from cowen. todd tell bus the chart. what's the next step. >> if we take a look at the daily here we have a key level just around the 1,200 coincidentally early 2018 we broken above it and coming back here re-testing trying to push up through on earnings. now earnings reports are expected to see a $55 move higher or lower. if it's anything good and the street likes it we should be

able to continue it on through to get off this daily chart, sara and got out to the weekly chart just get a perspective of how far this stock has come if we flip over we're inside the beautiful uptrend channel many ahead of the earning reports looking at 12 to 18months. if these continue from the simple technician point of view you have a uptrend which serves as a resistance if they get bade that level doesn't come in until you're up around 16 to $1,700. we certainly have room to go over the next year >> fundamentally, dave see berg are you as bullish we are set to see the $5 billion fine factored in q 23 profits which wrecks the number. even though they appeal the decision what else are you watching out for if the reports. >> that getting out of the way is an overhang lifted. but i think it's about the core

margin we did a preview a couple days aig and talked about the fact that for the first time in 11 you know quarters he expects tech to deaccelerate that's the traffic skigs costs. if they they can keep the core margin and 35% or better is ran voms volumes in longan the itching the sfok moves to higher levels it's up 14% year to date, probablily the least performing fang stock this is a name that continues to work. >> this was a massive -- sorry sahr pai this was a massive under perform are they were stuck in the mud and auchlds there is a lot of moment up. aufld went from laggard to a leader on nasdaq. >> it's why the value investors and growth investors both like it todd gordon dave sea berg. >> for more trading nation follow us on twitter at trading nation melissa. >> thanks sara.

straight ahead soybean crops caught in the cross hairs as the u.s. china trade war heats up. power lunch is back in two >> announcer: and now the latest from trade attention nation.cnbc.com. >> a tubl top is a chart formation that suggestion a up trend may be ending and ready to reverse. a double top consisting of two well defined peaks approximately the same price traders often few a break of the lowest low in the forming as a bearish signal

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who are ready to help you maximize your budget while elevating your advertising effectiveness. sounds like an advertising opportunity knocking. visit comcastspotlight.com today. i'm bill griffeth here is the news update this hour. new jersey governor phil murphy went to the beach to sign legislation banning smoking at the public beaches and state parks. fines start at $250. but it's not yet clear who will enforce the ban. either the police or life guards the new law does allow for designated smoking areas, though, in some locations. japanese prime minister shinzo abe is warning the u.s. that higher tariffs on auto imports would back fire and harm not only american jobs ant u.s. economy but devastate the global economy. abe says japan's auto industry

has never threatened u.s. national security and never will the palestinian health ministry says three people were killed by israeli gunfire in gaz aire israel's military says palestinians fired shots at soldiers and it responded with airstrikes and tank fire there have been weekly protests at the border since the end of march. and it was 49 years aig today that neil armstrong and buzz aldrin were the first earthling to walk on the moon. and jeff bases os company completed another space explore to edge of pace. they hope tofer were individuals to the edge of space tyler i guess us and i are the only two in the group remembering the giant leap for mankind. >> i do remember it. i remember where i was sitting one of those moments on the floor in my den in arlington,

virginia. >> how about you, melissa and michelle. >> no, i don't remember it i have had din we are neil armstrong twice. he is amazing. amazing experience. >> what did you eat? what did you have. >> i remember him talking about how he loved engineering. >> thanksing with, bill. >> goodbye. >> president president trump addressing trade concerns in the past few hours tweeting farmers have been on a downward trend for 15 years the price of soybeans fell 15 peppers five years before the election the big reason is bad terrible trade deals. canada charges 275% on dairy farmers will win so is the president right? and could the growing trade dispute result in a good outcome for farmers in contessa standing by with the story in north dakota hi, contessa. >> the farmers on the ground here open the president is win they hope to win they agree they have been competing globally on an uneven

playing field for some time. but right now talking about talking about soybean prices that have been low we saw almost 20% decline in the three months since try china started talking tough about retaliatory tariffs. now it's 8.50 a bushel they need 9, 9.50 a bushel it's concerning to the north dakota trade offers. the executive director is simon wilson describe to me some of the other immediate consequences you see for the retaliatory tare zbliefrs right now the biggest thing we see is other countries starting now to pushback to our producers and say, you know, we need a price concession. we need to talk about this price. because the price bottomed out over the last 60 days. >> you are talking about southeast asian nations calling the producer saying even though you have soybeans in transit right now we want a price cut. >> it's the big problem is they're calling and hearing from producer and we're working back with each of the countries all

the southeast countries doing it. >> the other thing we talked about is the fact that china immediately cancelled all farm orders for food grade soybeans but you're not even to the hot spot for the season to lock up the contracts yet. how much is at stake. >> well there is a lot at stake. right now this is where normally we are talking and locking in the contracts. and these contracts you know these are the ones that live through the rest of the winter and so on. we are really now at a point where if they don't get locked in we don't know where we put the beans. >> is it something you can work out with chinese trade delegations. >> we'd like to. the chinese trade delegations right now one scheduled for september. and they have gone radio silent on us. and we are trying to get connected and see. we really want to keep the relationship and keep this business going even in spite of all the problems. >> i got to ask though if we are talking about prices per bushel of 8.50. and that was a 20% discount from what we saw three months aig huff roughly speaking pb 25%

tariff 25% discount the chinese would be paying about the same why are they cancelling the orders >> it's a global commodity see they see the price out there. the other piece of it we are trying to reach out to connections in china and trying to find out if they've been told to not really do anything like right now. let's hold off and keep the pressure on. >> the processer told me yesterday in the short term i'm losing money my contract gets cancelled i have the beans in transit. i found an alternative buyer but i had to sell for a haircut lost $40,000 who might sneak in now and take advantage of this? who are the big global competitors for alternate markets. >> >>? that's a great question the big competitor for sus canada. they have the similar weather, similar production cycle for us we have been competing with them. we don't mind competing on a fair level playing field but when you put arbitrary pieces with he we can't get in the door that's a problem for us and produceren all the way through

to the farm zbleers i new brazil was a big competitor when it comes to providing even not maybe food grade soybeans but soybeans overall that they need to pigs a lot in china when you talk about russia going in in and working actively to try and take chinese buyers away from american soybean processors, i was surprised to hear that. >> it's one where there is a lot of money china is a massive market for soybeans for us the russians as well as the brazilianss for all of they are playing the game and getting in their hard. we don't mind competing but putting us on the sidelines that's real tough. >> simon thank you i know you have the -- a lot of hopes riding on what the office can do for the farmers and the processors here in north dakota. guys, 70% of the soybeans that are produced in north dakota are headed for export and almost all of those are headed for china. >> wow 70%. contessa thank you contessa brewer. let's get to eric he has a

market flash big aroma. >> this stock 15% news the chairman is considering breaking up the company splitting off into two companies he has been talking to the biggest shareholders about the plans to get their take. that's why the stock moving up about 3.5% just one tidbit it's been basically flat over 5% the last 12 months. maybe one reason they are looking for more juice in the stock. >> i can't remember how long ago but i remember when glaxo and smith klein. >> you know who always makes money. >> the bankers make it on the up and down. >> um-hum. >> maybe this is me. straights ahead. the winner of the world series of poker main event will show off flashry jewelry he picked up in las vegas that's what he get when you win. and we will talk about the plans for the $9 million haul.

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that's the call. and that is the tournament john sin can call himself main event champion >> at 5:00 a.m. sunday morning after more than 11 hours of play on the tenth day of the biggest poker tournament of the year our next guest emerged victorious winning the $$8.8 million price in the world series of poker main event he looked too exhausted to celebrate as you can see from the video. didn't even cheer. jorn joins from us las vegas >> how is going. >> show us the bracelet what's it made of why is it so exciting. >> i believe it's made of diamonds i'm not really sure what else. it's superexciting to have this because this is -- this is the dream when everybody starts playing poker they all dream

about the main event this is the one tournament a year that people look forward to. >> you did look exhausted describe that moment when you won. >> the moment was definitely incredible so i had no idea what to expect. it was definitely bittersweet, you know, didn't want to celebrate touch in front of -- in front of tony but obviously one of the biggest accomplishment that is i've had to date. >> i've backup told that in the tournaments you can actually during a break for example, make a deal with the other opponent who is left and say, okay one of sus going to win quote unquote but later we split the pot let's call it a day because we're exhausted. did you win/win or make a deal. >> we -- or i -- not we. i won/won. flfs a point we talked about a deal but then every break it seemed like i had some really great guys around me who kept talking

strategy so didn't get a chance to hammer anything out so there was no deal made. >> when you go in -- i did not know this. apparently some players agree to sell a part of the winnings in return for guaranteed cash up-front did you do that? and houfrp of the -- what is it 8 -- almost 9 million will you actually keep after tax. >> i had a pretty large portion of it. i did sell some pieces to some friends just to -- just to give them sweats. at some point swapped out a few pieces with friends going deep just to reduce variance. but i did have a pretty large myself. >> there is a lot arbitrage. >> there is a little bit depending on the player. >> does that mean you get more sponsorships winning from the tournament

might not be the biggest pot you get. >> it's definitely not like it used to be when the online poker was big. but there is still definitely sponsorships but i think the most significant is still the prize money but also, the opportunities i think are still coming so we'll see what happens. >> do you think trump would be a good poker player. >> i think donald trump would be a good poker player? anybody can be a good poker player people have different skills they can use to be good at poker. so i mean, the short answer, i believe is yes >> your last nim cynn is that your real last name or do you like a name synonymous with sin, sin city. >> that is my real last name is the real pronouncing i've been pronouncing it my whole life in korean it's shin.

>> but works better as sin in vegas. >> obviously the last name was meant for this. >> how long, jon, if you i and sat down how long would it take for you to wipe me out. >> there is a lot of variables but it's not guaranteed i weep you out. you could definitely boat me any given hand any moment. >> i'll take that to the bank. >> that's a nice answer, jon you can come back any time >> hey, jon, i understand crypto is big on the poker circuit. are you in crypto yourself. >> absolutely. there is definitely -- it's something that i've been splitting time with especially in the past year partially crypto and partially poker i think there is a lot of poker players get involved just because you know there is a lot of skills that translate over from crypt of to poker >> like what >> i think, you know, our tolerance to variance. i think is very important. obviously crypto is very

volatile and just, you know, in both -- i found that you really need like strong analytical skill set to be able to break things down which i think those two skills are probably the two that translate the best. >> what are you doing with the money? >> what i'm doing with the pollone, definitely going to continue crypto. going to talk to people about. >> are you going to invest. >> what i should do with money definitely some sort of investing. but the plan right now is to not do anything major with the money until i get a chance to talk to people. >> do not go buy a bentley do not pend it on you know. >> that's the problem. >> don't buy fast food franchises. >> yeah. and if you guys have any advice for me oh what i should do. >> what about the stock market ever think about the stock market. >> absolutely i think everything is in play to a certain extent it's just a matter of how i want to split it up and manage it >> so you won you got the big

wad of cash, john which crypto, which coin do you buy first. >> oh, man, that's definitely not my specialty i guess. or you know, i mostly invest in icos. >> okay. >> but yeah. >> all right jon that was fun mr. cynn good to have you on. >> thank you so much >> all right pfizer agreed not to raise drug prices after lobbying from the trump administration and america will lower drug price. can politicsle pressure lower the prices across the board? we will debate that straight ahead on power lunch my digestive system used to make me feel sluggish but now, i take metamucil every day.

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welcome back to power lunch. merck announcing yesterday it will cut list prices of several drugs and also promises to limit future net increases freezing drug price increases as well will more drug companies follow suit michael, always great to see you. you know, we had a european pharmaceutical companies today also say they're going to do the

same thing all saying they're going to freeze u.s. prices when you're factoring in the scenario for the sector, are you factoring in there wion't actually be legislation but this voluntary roll back, and that will suffice >> well, i think the important take away investors should understand about recent developments is while there are neither no price increases or in some cases with merck, price decreases very interestingly the drugs they reduced prices on were very small drugs or insignificant drugs, so that was one thing. to answer your question, we are not taking into account major legislation we think will get enacted that will significantly impact future drug prices and not assuming big drug prices in our models i think that's a big thing i think there were important winners and that trump certainly

is appearing to look good at least on the surface of this and drug companies looking good at least on the surface >> it really is a win-win for everybody. when you take a look at what merck is doing in terms of their biggest roll back it was on a help c drug and in their last earnings report they actually had a decline in sales it seems the drug companies can actually pick and choose so as to emerge with the least impact on their bottom lines. if you sort of model this out, michael, are there other companies you're concerned about that really rely much more on price increases in order to keep up with estimates? >> i think i would just argue that we certainly are not assuming and i agree with consensus that they're not assuming big price increases on these drugs. whether or not there's actually price dekreelss i think like you said they're probably going to be able to pick and choose a little bit of that and that overall holistically

their total pharmaceutical portfolio is not going to have price increases. i think the good news here is both the administration is trying to look good and might be some form of compromise to say, hey, look, these things are happening, we're working with you, will the government ease up on their side. and ultimately i think that's why major legislation is not going to happen. people will feel better about that and mid-term elections will pass and we'll go into '19 feeling better about these things >> bottom line the strategy is to wait it out wait until president trump isn't president anymore and they can go back to rising prices >> i think i would reiterate many of these companies, they are more cognizant, they're more aware, certainly do not want to be publicly shamed, you know, on twitter. and i think people are certainly aware of that. i think given that nature,

modest price increases are certainly things, midsingle digits, et cetera, while i would argue those could continue we also know it's about gross to rebate, et cetera, et cetera i think people are aware of things and shouldn't be a major impact going forward check please is next don't move let's get started. show of hands. who wants customizable options chains? ones that make it fast and easy to analyze and take action? how about some of the lowest options fees? are you raising your hand? good then it's time for power e*trade the platform, price and service that gives you the edge you need. alright one quick game of rock, paper, scissors. 1, 2, 3, go. e*trade. the original place to invest online. that's confident. but it's not kayak confident.

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what a busy week it has been, and one of the hiloilghlis for all of us on wednesday when you sat down with steve bannon we talked about china, trade and you asked him what victory in a trade war would look like. he said we will win it >> i think the number one thing you're going to see out of a trade war is the reorientation of the complete supply chain of japan, western europe and the united states and southeast asia, 800 million people before you get to india, around the freedom loving countries i think the regime in china is in deep trouble. >> what he is saying there to me is that the u.s. doesn't merely want to address trade imbalance but wound china. >> i think he definitely wants to wound china for a number of reasons because he does not think they are freedom loving

for sure >> and that if we do not do that we will be a permanent junior partner to china, i think that was the phrase he used >> he was also suspicious they'd ever change it to have people who'd want to invest what a great week. >> what a week it's been >> thank you for watching power lunch. "closing bell" starts right now. good afternoon and happy friday, everyone andwelcome to "the closing bell. president trump ramping up the trade war rhetoric in an interview with cnbc. the question now, do we face a currency war as well >> i'm contessa bruer in portland, north dakota where they find themselves scrambling in the markets after getting caught in the middle of a trade war between the united states and china. >> president trump doubling down on his criticism of the federal reserve today, and i'll look at the potential implications o