>> tomorrow down 3% to the high. that's doing really well i think it's a value stock not a growth stack stock >> we'll see what it means for tech >> how about verizon continues to move higher >> good stuff. thanks, guys power starts now >> scott, thank you very much, folks. welcome to power lunch i'm tyler matheson losing their bite. facebook hitting bear market territory. netflix down again the fang names have been bullet proof this year, but is the market finally ready for a big rotation and trade tariff troubles. a triple t caterpillar warning it will take a financial hit, and it will raise prices harley davidson ceo speaks out exclusively to cnbc about tariffs, and cvs shares sinking again. the board meeting to discuss the investigation into the ceo less moonvess well as plans to examine its overall corporate

culture. the future of cbs and its ceo in the fate power lunch starts right now >> welcome to "power lunch." i'm courtney reagan. stocks taking a leg lower in the past hour. the nasdaq, again, taking the biggest beating on track for its biggest three-day loss since late march despite today's drop, though, the dow and the s&p 500 remain on track for their biggest monthly gain since january tyler mentioned tyson foods. the stock down 6%. right now on its warning, more on that ahead. american express is down about 3% on reports that it raised currency prices on business clients without warning. the "wall street journal" says this went on for more than a decade amex denying the claims. hi, bill >> hey, courtney i'm bill you never know who you are going to see on "power lunch" these days with the nasdaq's big tumble today, are we seeing this great rotation out of big tech bob pasani has been sounding that at the new york stock exchange, and it's happening

again today. bob. years on that. maybe it's finally starting to change let me show you the sectors today. what are leadership groups today? well, energy, retail, and financial. those are traditionally value sectors. what is the laggard today? tech, that is traditionally a growth sector. just take a look that pattern is continuing, and there's the fang stock we talk about this last week down various degrees, but google only down 2% these are notable declines that we've seen recently here if you take a look at whether or not fang is fading, well, i'm not sure they're completely fading, but we are notably down for the 52-week high as you heard earlier, facebook is down 22.7%. netflix, 19. they only hit their highs a short while ago. amazon, alphabet, and apple much more modest declines, but still quite noticeable here. are we facing a leadership switch i talked about this at the end

of the week last six days. the s&p is flat. the two great leadership groups, small cap russell 2,000 and fang stocks both of them notably under performing in the last six trading sessions at least short-term there's definitely some kind of rotation going on are we finally switching places between growth and value again, this is the six-day trend, but we haven't seen this in a while row tail mostly, energy. financial names outperforming the growth names in the last six days the russell 1,000, again, hasn't happened in a long time. there are comments over the weekend about this morgan stanley, one of the equity strategists over there. michael wilson says we view friday's moves as a sign of market exhaustion and things shift towards value. could be more sustainable. i haven't heard that one in a while. guys, back to you. >> all right, bob. thank you. we'll see you a little later a number of the fang names have hit or are near bear market territory? is this market ready for a big rotation joining us to discuss ryan

lovetts, and neil, the portfolio manager and chief investment officer with the hen si funds. is the fang trade over for now >> i don't think that the big growth story is over i mean, you might see -- two things have happened you've had a pick-up in economic activity recently in the united states, and, two, with facebook and netflix some user growth plateau or subscriber growth plateau are coming below expectations we shouldn't read so much into this in order for value to be the long-term winner, you need a catalyst, and that catalyst would be higher sustained growth in the united states i don't think that's forthcoming given where we are in the economic cycle value might do well here as u.s. growth looks strong. i think growth is going to moderate i think the yield curve will flat if the fed raises interest rates. to me that continues to be a growth story >> neil, for you at the very least the fang stocks are expensive right now, right >> very much so. i mean, if you just step back

from the picture and you look at these companies, these five companies are growth companies they are not super high growth companies anymore. they are all earning real bottom line money now you can value these companies when you are running or earning real money compared to how do you value tesla that's earning nothing? essentially, investors start to look and say these aren't super hot companies on the growth sector why should i be in them and pay four to ten times on a price to sales ratio when there's plenty of companies, bill, out there that you can buy for 50 cents on the dollar >> but they're getting cheaper, neil look at those numbers. facebook down $8.

>> i think that's where the money is going to start to go. >> it's actually pretty rare to see it shift in leadership towards the end of an economic cycle. now, i'm not suggesting that we're nearing the end, but we're definitely in the mid to latter stages of this cycle whether you go back and you look at tech stocks in the 1990s or look at energy stocks in the mid 2000s, it's very rare to see sector growth versus value shift significantly in the late stage. typically when value outperforms is at the depth of the recession into the recovery. it typically doesn't happen a big shift in that leadership in the mid to late stages of it >> couldn't it be a healthy thing for market participants if the leadership widens a little bit, and we're not so focused on a group of four or five stocks?

>> we're going to see further steepening of the yield curve, you wouldn't -- you would want to go out and buy those value stocks in my mind, i think we have a couple of quarters of better growth fed tightening a flattening of the yield curve, and that means investors will favor growth >> before with he go, what are you going to buy instead in you like winnebago, for example? >> you can look at that which is in the recreational business, and they're moving in the leisure boating business at the same time. the low prices say it's high earnings, very dividends covered. you know, four or five, six to one, you can look at the catastrophes that we've had in the u.s. in the fires especially where we're seeing again in

northern california in the last couple of days this is all going to have to be rebuilt, boise cascade, or you can look at rush enterprises. commercial trucks. >> the company warning that tariffs will shave off between $100 million and $200 million from its bottom line in the second half of the year. it's going to raise prices let's dig deeper with rob from melius research. does cat have the pricing power to recoup some of those headwinds that may come from the tariffs? do they have it? because the cycle is pretty strong for them. >> they do have the pricing power, and it's for a couple of other reasons. one, it's a great company, and they have a leading position, and it's a good product.

their end markets have been depressed, so people need equipment. they need it to do the jobs they're trying to do, and there is good pricing power out there. >> are you raising your estimates for their earnings this year as some have >> yeah, they guided to the prior guide. they raised by 7% or so, and there's underlying strength that we've been calling out the past year and both replacement demand and growth >> i -- okay pricing power is one thing, but when you have -- what the situation is -- it's almost like a perfect storm for them they're having to raise prices at a time when the farmers are suffering because of the tariffs, and they're worried about their own businesses, so wouldn't demand go down just when they're raising -- it doesn't make a whole lot of sense right now economically, does it? >> okay. so fair enough, but i think that the key thing to think about is a lot of cat's end markets vbt had tremendous strength over the past few years, and they need to see some reinvestment. that's true in mining and oil and gas, and even true in the u.s. construction. tariffs do have a cost impact on folks. you have a little bit of

inflationary push from the economy. that's fair. overall i think that, you know, cat selling into strengthening markets, you know, with customers that have good demand so they can afford it. >> it's just so interesting, rob, that they quantified the tariff impact for us with a fairly fine point. $100 million to $200 million still, raise that forecast going forward. i know we've kind of been circling the drain on this, but, i mean, do you have confidence that they can indeed meet this now higher guidance even with the idea that they're going to have to raise prices >> yeah. cat's execution has been extraordinary really if you look at the last quarter, they had the highest incremental margin they got the most margen on the extra revenues of anybody in group, and they had the highest revenue growth, and that looks like it's going to continue this quarter. they have mostly depressed end markets. some are coming up towards normal, and they have the capacity to do it, and the production system is ticking along. they have been doing very well >> the stock is 143. where do you see it going? >> we have a two-year price target of 208, and the key thing

to keep in mind is we think the end markets have been very depressed and have a long way of recovery to come, and usually after a long period of depressed end markets, you get excess growth we're still waiting to see that, but it's coming through so far >> rob, thank you very much. thanks happening right now president trump hosting italian prime minister they'll hold a joint news conference in the next hour. kayla is at the white house for us hi, kayla. >> hey, court. this visit is coming two months into the term of the italian prime minister on the agenda today trade where the u.s. has a trade deficit with italy that trump pointed out, and military spending where italy is contributing just half of the 2% gdp requirement to nato apart from that these two leaders have many more areas agreement than areas of frukz, and the president singled out one of them in the oval office last hour. >> i agree very much what you are doing with respect to migration and illegal immigration, and even legal

immigration. at least taking a very firm stance on the border a stance a few countries have taken and, frankly, you're doing the right thing in my opinion, and a lot of other countries in europe should be doing it also >> in addition to sharing views on immigration, these two are also both complete kplikt political outsiders. having not served in political office they're both skeptical of the european union this despite president trump's agreement with the european union just last week they also both favor friendlier relations towards russia prime minister conte has favored loosening sanctions, and was the only leader to publicly support president trump's call to riyadh mitt russia into the g7. that was the last time these two leaders met. just about six weeks ago a little bit more than that. even though some of the ranker between the u.s. and president trump with those allies at the g7 have subsided in the recent weeks, one of the things i'm

told that prime minister conte wants to discuss with president trump is potentially having italy serve as a counter weight to france, germany, and the rest of the european union in some of the battles that the president wants to take on we'll see what happens a little bit later on today, guys >> very interesting. puts italy in a very interesting position there with the u.s. and, of course, with the rest of europe thanks very much, kayla. harley davidson went from darling of the president to target all while dealing with sales that were slipping harley ceo speaks exclusively to cnbc about his plan to turn the company around and wilbur ross says we wouldn't even notice the increase in price of soup and beer cans. now the users of those products are saying something different

>> the company's ceo speaking exclusively to morgan brennan about it he weighed in on trade tariffs and the president, morgan joins us now with more hi, morgan the motorcycle manufacturer unveiling its more roads to harley davidson plant today, which includes stronger dealers, more access for its products also, a new additional line-up of smaller, more affordable bikes. even a portfolio of electric

motorcycles. they plan to launch 100 new motorcycles, more u.s. nationals and growth national. i sat down with ceo matt levitage exclusively to discuss this news as well as trade picking on one specific thing like motorcycles and assuming it's going to be easy to change, that's where it gets very confident and very difficult, and the administration is working very hard on this very issue. we have endured economic and non-economic trade barriers in our international growth we have competed on our merits we've done very well we're in over 100 countries now around the world, and we're doing well despite some of these things we would like more of a level playing field because we think

we can do even better. >> do you think we'll ultimately get that the administration has signalled that all of this is to get to that place >> they are absolutely in line with what we all want free and fair trade both. we've been consistent on that point. i think they've been consistent. it's hard to tell now with a direction things are going where it will all end. as a business we're obviously playing very close attention to it we're talking to as many governments as we can about what we're interested in as a business and a brand, and we'll make those best decisions when the time comes with when it is facts and circumstances change >> are you talking to anyone in the trump administration to the president directly >> the administration has been very engaged we have been very engaged. they've been very engaged since the election in particular in india. the ustr, our ambassador to india. the prime minister himself i think with the president i wasn't there, but there were discussions around the duties

that we faced in india there have been discussions about how that could be changed. >> harley has become it's become a lightning rod of the global trade debate he says he works hard to be apolitical in how the company approaches its business and its consumers. now in terms of the news today, harley will self-fund those investments and expects it to generate over $1 billion of incremental revenue in 2022 versus 2017. now, shares started the day higher on the details of this strategy, but have since turned lower. down about half a percent as we've seen the broader market drift lower into the red as well courtney >> thanks very much, morgan. great job on that interview. >> shares down 13% this year can the company's roll-out of new bikes, counter act tariffs and turn the stock around? let's bring in ubs analyst robin farley we have a new plan here today. more roads lead to harley, but we talk a lot about trade and

tariffs. there are bigger problems. sales in the u.s. down more than 6% international up just slightly what do you make of this new longer-term strategic plan that harley davidson put forward today? >>. >> this year is going to be harley's fourth consecutive year of declines. they certainly need to do something different. it's not clear whether this is going to turn around their fortunes after four years of decline. the sales projections they've put out there call for about a 4% increase a year over the next five years that would be a pretty significant turn-around, and these are -- some of these bikes aren't going to be shipped for two or three years from now. it buys them some time for investors to think about how things could be two or three years out, but it's probably not going to change things in the near term for harley >> i understand that these lower priced and lighter wraet bikes are also lower margin too. they're going to have to sell an awful lot more of those to get back to a strong place of profitability and growth correct? >>. >> exactly we've already seen this when

they introduced the street models they're lower priced, lighter weight bikes, and that's going to be less profitable typically, and their margins have already been coming down a couple of hundred basis poins over the last few years their announcement this morning talks about keeping margins where they are, but it's tough to see how they're going to do that when they're going to be selling a lot more of these lower margin bikes >> so the president has been hard on harley davidson for their moves to off shore some production is any of their sales decline traceable to what the president has said, which is that their customers are angry with them for moving production off shore? do you see that? >> well, i don't want to wade into politics here i would just say that the decline this year is, you know, follows through years of sales declines in the u.s. already in our view, the bigger picture, what's behind the declines in harley sales, is that their average rider is aging and not buying bikes at the same right

they used to, and i think that's been the bigger picture issue behind harley's declines now for a couple of years. >> the politics aside, you have to admit, harley is a special brand. they've chosen to be identified as a very american kind of a brand, and a lot of the americans out there, they feel this nationalist tendency. i have a lot of friends and family going up to sturgis, south dakota, right now for the huge motor rally that's going on up there, and they are mostly all trump supporters can they support their beloved harley when they can support the president at the same time i'm not trying to get you to talk about politics, but it is a dilemma that this company that is very identified with the united states faces right now. >> harley is an american brand, and i think for u.s. riders, i mean, they're still going to continue to manufacturer u.s. sold bikes in the u.s. that aspect of the brand, you know, won't change with anything

that's been announced today or anything they're doing now zblie find it very interesting that they're looking at doing an electric motorcycle. i'm not a big motorcycle chick myself, but i understand that sort of the power and sound is part of it >> if it wasn't a hog, what would it be? a piglet >> what would it be, robin >> there are also some of the aspects in the announcement today. they've talked about electric motorcycles, but they're going to start shipping next year. some of the things they talked about today are to go after the sort of scooter and moped market, which is a departure for the harley brand, and it is interesting to see how that is going to impact i think the traditional harley rider who is used to something very different than that. >> do you think it will work >> i think it's -- it will be a challenging thing to make a profitable electric motorcycle for a price that, you know, if the price is $28,000 per bike,

that's going to be tough to sell to a u.s. bike buyer, and it's going to be tough to be profitable given the amount of rnd. >> how about a smaller bike that isn't electric one that's gas-powered, but not the big hog? >> so, in other words, not an electric bike. you mean some of the medium size bikes that they're talking about today? >> do you think that's a good move >> part of what they're announcing today just with the traditional bikes, putting midscale platform, one of the competitors, polaris owns the indian brand, and they've done very well with the indian scout, and some of what they're -- they've announced today is to go after where they see players going. they're not going to ship until 2021 this is not a near-term fix for harley >> very long-term, in fact thank you very much, robin farley >> farley on harley. >> we appreciate you being here with us. >> thank you another industry being hurt by the tariffs are metals, food,

and beverage companies whose products can come in a can the administration said that the impact would be a fraction of a cent per can, but adidi roy says they feel a little differently, right? >> yeah, they certainly do, bill that's right we are at pacific coast producers where they are canning tomatoes behind me the ceo tells me each of these cans is costing them more because of the tariffs we'll tell you how much coming up wall street guy. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade

>> remember the now famts picture of wilbur ross who was holding up the can of campbell's soup pointing out the tariffs would have a fraction of a penny to the cost of eep of those cans. sf. >> hair net and hard hat in place. yes, ma'am >> i am ready. we are at a farmer-run co-op here it produces 600 million cans of fruits and vegetables every year, and turns them around and sells them to companies ranging from kroger to whole foods the ceo here tells me that each can is now costing them 2.5 cents more because much the tariffs. he says that pacific coast producers does not produce its own cans brsh they buy them from a supplier who is passing those costs on to them, and it adds up to about half of the co-op's annual income. wilbur ross holds up a can of

campbell's soup and says it only adds .6 of a cent to cans. the manufacturer says the tariffs will add an extra penny per can or a total of $1.1 billion in extra costs for the u.s. can industry. just last week the ceo of coca-cola said the price of the company sodas will go up as a result of the tariffs, and anheuser-busch told nuss a statement a tear of on aluminum is a tax that threatens jobs in the beer industry and has the potential to raising the cost of brewing in the u.s the ceo believes that ultimately he will have to pass those costs on to his retail clients, which will eventually hit consumers. back to you, guys. >> thank you very much adidi roy in california. check out this mystery chart. the stock is up 16% in a year, and it's in a unique position to give us a read about the broader economy. we'll have the ceo of this mystery. >> we're going to go tout

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>> here's your cnbc news update at this hour lawyers announcing a $100 million federal lawsuit in connection with the deadly duck boat accident in missouri. they accuse the owners and operators of putting passengers' lives at risk. the boat sank during a thunderstorm on july 19th, killing 17 people, including five children. the former president of zimbabwe casting his vote today in the country's first election since he was ousted in a de facto cue just a few months ago. he was absent from the ballot for the first time since gaining independence from britain in 1980 an investigation is underway in india into a deadly roof collapse that injured dozens of people they were standing on the tin roof watching a tractor-trailer stunt show no word on any fatalities quite yet. and your next uber may offer more than just a ride.

uber is planning to install more small vending machines in their vehicles they'll sell items like snacks and ear buds uber will make them available in major cities on the east coast in the midwest there are already car vending machines installed in l.a. and san francisco. you're up-to-date. that's the news update this hour bill, i'll send it back to you >> sue, thank you very much. a second firefighter, unfortunately, has been killed while fighting that massive wildfire in california nbc's jay gray joins us now with the very latest. jay. >> yeah, bill. that firefighter died on the frontlines fighting this blaze as a tree fell they were trying to clean out some of the fuel, and he was killed tragically there have been eight people that have lost their lives as a result of fires six here in the car fire in the redding area that includes great grandmother and her two great grandchildren who were swept up by the flames. look, these fires are continuing to grow here the car fire is 20% contained. that's good news

that's the highest number we've had to this point. there's a real concern from those on the front line that the winds are going to pick up and that it could be shifting throughout the day that's what forecasters are warning here we know that already more than 1,000 structures, most of those homes, have been affected by the flames 875 or so are a complete loss. more than 40,000 people still evacuated in some key areas where there's concern about the fire, and there are more than 6,000 homes right now in what's considered the danger zone homes that could be affected courtney >> thank you very much, jay. really appreciate it make sure you keep yourself safe out there while you're covering those fires for us >> there's a big week on tap for investors. the fed kicks off a two-day meeting on interest rates. plus, friday's jobs report your next guest has a unique view on the economy and how rising rates are playing out outside of the east coast and california he runs bok financial, one of the largest bank holding companies in the u.s. with locations in the heartland and the southwest, as you see there.

steve bradshaw is president and ceo of bok financial mr. bradshaw, welcome. good to have you with us >> thanks for having me. >> it's not been a significant factor at least more than offset my just general enthusiasm. i think, in the business community around growth of the economy and less regulation or at least less new regulation and then obviously the boost from tax reform from our perspective, the expansion is alive and well here in the southwest >> banks make money when they lend money how is loan demand in your part of the country, and where is it coming from? >> well, it's been strong. just for us specifically the second quarter was the greatest loan growth quarter we've had in the history of the company it was $665 million. it's been broad-based. we're seeing it across most sectors. we're certainly seeing it in the

energy sector, which is important for us commercial real estate our health care group, and across most of our commercial and industrial areas as well it's been broad-based, and it's been really building strength really since the first quarter request. >> i'm guessing that my guess as well is you feel very comfortable with oil prices roughly where they are today it seems to be working for at least that part of the economy >> sure. from bfk financial perspective, our energy portfolio is around $3 billion that's the most sizable segment within our company we have 100 year history in lending money to the energy business you're exactly right we're very comfortable there we understand the dynamics of that industry, and as that industry has recovered strongly really from the downturn of 14 and 15, we have seen a lot of

ancillary businesses expanding in the marketplace as well it's an important part of what we do. >> i was looking at a longer term charlotte of your stock back to 2000 your stock is up five-fold this that time, and if i had just looked at the chart, i would not have thought you were a financial institution. are you not subject to the vagueries of the economic cycle there? is your economy a little more stable than we've seen in other parts of the country what's going on there? >> i think it's really more about the construct of how we've built bok financial over the years, bill. nearly half of our revenue comes from fee-based businesses, whether it's wealth management,ure atm network,ure other fee areas. we're not just dependent on a lending cycle to generate profitability for the organization, or to find ways that we can serve clients as well regardless of where the economy is at a point in time. that was a lesson that we

learned in the 1980s here in the southwest, and we've built them back accordingly, and that really says a lot for our performance. >> should we expect to see more consolidation in the financial services business, in the banking business, maybe in your part of the country? that's question one. as i'm paid to ask double questions here. snoo up until may of this year, there was a significant bright line in that regulation at 50 billion asset size, and for a bank of our size, we're 34 billion.

a dramatic element of cost that moved to $250 billion with that change to dodd frank in may, and so i think there will be additional consolidation. i think there's some pent-up consolidation out there in the marketplace. we're a good example of that just through the last 30 days we announced an acquisition of the $4 billion bank, colorado business bank, based in denver we see that as a growth opportunity moving forward i think -- yeah, that's it >> thank you, steve. we appreciate your time. have you back again soon thanks a lot >> thank you very much rick santelli tracking the action at the cma for us as he does every day hi, rick >> hi. you know, the curve still has a little more steepness therein we left at the end of last week, but not much short end is virtually unchanged long and up on base point. you see the intraday of tens gave a lot of it back. if you look at ten-year yields from may 1st, this is key. if you take the high and low, it 2959 is the average. we've held it.

many think we're going to retest march's 2018 high close for the year, which was 31 1 finally, the dollar index. intraday chart, it's down about one-third of a cent or more. june 1st chart shows 94 even with traders are paying attention to that's considered the best support after failing at several attempts at closing above 95 in the last two weeks bill, back to you. >> all right, rick thanks >> so the board of cbs, as you know, meeting to discuss the future of ceo less moonves after the misconduct allegations against him surfaced last week what next? what does it mean for cbs stock? we have all the angles covered ntueluh"story when "power nc coins.

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>> wbs in the middle of a major controversy and allegations of misconduct against its long-time ceo les moonves.

julia borestein has the latest details. julia. >> well, tyler, a source saying it started over an hour ago conducted via phone with ceo les moonves and others in new york we saw board member william dough cohen in new york earlier today. now, though this meeting was scheduled long ago, the cohen side with cbs's earnings due out after the bell thursday afternoon. the focus will surely be on the investigation into moonves as well as a broader probe into cbs's corporate culture. following the new yorker article published friday, which roenan pharaoh reported six women, four on the record, accuse the ceo of harassment and intimidation between the 1980s and 2000s. he reported that dozens more report an environment of harassment at cbs. the questions at hand, will the board continue to support moonves or place him on leave? will it push him out entirely? or will moonves choose to step aside? moonves at mitting he made advances, but he says he has never misused his position to

hinder anyone's career cbs shares are down another 5% today after losing 6% on friday. bill >> julia, stay right there you can join our discussion here porter bib, at capital partners joins us right now what a. >> this tremendous growth for the company for the last 20 some years, and now they're talking about maybe ousting. what do you think is going to happen here? >> i think it's inevitable that les is history at cbs. whether he takes a leave of absence or is dismissed outright is up for grabs right now. the board, as julia just mentioned, is still considering how to handle this there already are a slew of class action suits against cbs and the board for not taking action when the new yorker

article by roenan came out on friday it's really -- it's a shame because on thursday les and cbs were going to announce record earnings he has taken advantage of a consolidation of the network media industry and driven cbs into a very, very strong and opportunistic situation. unfortunately, the stock since last friday's article came out in the new yorker. stock is down over 10% and still falling. i think les is history joey will probably step in and take over the company and sherry redstone is very likely to have her wish and be able to combine viacom and cbs and then sell the combined companies >> julia, there is certainly a lot to talk about here not the least of which is the corporate culture at cbs if mr. moonves stays or if he goes, isn't there also a bigger issue when it comes to cbs from the top down at many, many

levels >> yes i mean, of course, this is not the first time we've heard about issues such as this one at cbs remember, charlie rose was pushed out after allegations of many women of sexual harassment, and so that was a question, of course, at cbs news. now, i think it's worth noting this is article, though a lot of it is about les moonves, and a lot of it is about the broader culture at cbs, and that raises questions about whoer might be his replacement. whether it's joe, if he is chief operating officer, is he airaway of a corporate culture that is unhealthy? i think this is going to be something that is really going to be a big deal for the company that is the board charts its future because as this investigation goes on, not just into moonves, but into the broader corporate culture, they're going to want to make sure that whoever takes the helm is someone who is not participated in creating a negative culture there

>> any delay doesn't speak well to women and doesn't get you the kind of public relations credit or cover that companies seem to need in these situations did they move too slowly should they have moved friday or over the weekend >> i think, les, whether he was ill-advised or acted on his own, his first response was to admit that the accusations against him by the six women mentioned in the new yorker article were accurate, but that he said times have changed, and he now understands and appreciates that no means no. that admission of guilt, though, really is the final blow that's why i don't think that he has a chance >> go ahead. >> porter, i would just say he did not say that the article was accurate i think what is going to be interesting here is the investigation happens, and he

made -- admit that he made passes at women, and he did not admit to allegations of the article of physical intimidation and also recrimination i mean, i think there are two pieces in the article. there's a difference between, you know, making a pass at someone and physically intimidating them and ruining their career as a result of it, and i think that is going to be a big piece of this. i think in a way it makes it more complicated because he just didn't deny outright he admitted he did have perhaps relationships with these people, but the question is whether or not it was -- you know, it's going to be a he said-semi said. we'll see how that pans out. >> all right, porter bib, julia, thank you both appreciate it. >> there's a lot to talk about here not the least of which is the cbs stock. shares down 5% one firm, cfra, down agreeding it to hold soon moonves's tenure is at hold now the analyst behind that call thank you very much for being here today we didn't talk about a lot of that in this last segment, but there are shareholders that are involved in these allegations now, and they're taking a hit.

of course, if they're in the long end why did you downgrade it today, and what do you make of what's going to happen? >> sure. you know, so i think if you look at history kind of precedent, how this kind of issues that played out prior to this time, you know, it's usually a cloud that kind of cloud that lingers when you get this type of announcement so we feel that this is a good time to kind of take a step back if you look back the stock hasn't done much the last couple years. there is no question that les moonves has a stellar track record bup there is always the disconnect between the fundamentals and recent price action and with the cloud now regarding the damaging sexual misconduct allegations i think this is something we expect to linger. i would share the view that the the odds now less likely that les moonves could survive this. >> is there a moonves premium in the stock. >> the shares dsh i think compared to the large media peers it traded at a premium which whip o we think is

somewhat justifiable that being tad o said, i think you're likely to see some of th that premium get discounted i would say 10 to 15% is what investors have traded up the shares relative to some of the peers because les moonves has done this sprkt job until this month. >> the cbs via come inevitable this month. >> as a result of these developments, obviously miss redstone who called for the throe and open and comprehensive investigation, i would be surprised if she does not steek to exert leverage in this situation amid the ongoing litigation you see that every side is looking to you know gain an advantage so i would agree that the chances of cbs and via come getting together ultimately has been enhanced. >> going to have a busy week as cbs reports injures and a lot of changes between now and then

thank you for being with us. >> well a huge interview coming on cnbc. jp morgan ceo jaimie dimon and we are waiting for president trump and the prime minister of italy to hold a joint press conference it till take you live tohe whe house that begins. stick with us on "power lunch. ♪ it is such a good time to kiss ♪

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a big interview on cnbc backup jp morgan sitting down with wilford frost and wilford join joins us before the interview from san diego hi, wilford. >> coming up at the top of "closing bell" with jamie dimon the chairman and ceo of jp morgan the stock is up 9.5% year to date we will talk about the recent earnings but perhaps more importantly the u.s. economy the bank share tied to the yield curve in recent months we will talk to mr. dimon about the flattening the yield curve and the fed and whether they continue to hike rates on the trade wars and on the 4% gchd print last week. is it sustainable? we'll get the talk and the update about the health care

initiative with berk hire hath away and the latest story of the scandal on amex. and the allegations facing lesly moonves and the tenure of friend and rival lloyd blanc fine announcing retirement recently they were two the two titans of the financial industry the last two ceos since the prefinancial crisis era. what does mr. dimon think about the decision to retire of mr. blank fine and how many more years do mr. dimon want himself at the top of jp morgan. at "closing bell" on 3:00 p.m.arian time. >> thank you very much wilford frost, 3:00. the exclusive with jamie dimon coming up in the second hour of power. the busy hour. the president holds a joint news conference with the prime minister of iflt guiseppe conte that folks is next on power lunch when it begins

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welcome, everybody the second hour of power lunch glad you could joib us as we await the president of the united states who has a press conference with the italian

prime minister guiseppe conte set to hold it any moment. the people are gathered we will bring it live when it begins. >> kayla tausche is live at the white house with what we can expect, hi, kayla. >> hi, courtney. the two leaders were meeting throughout the day first the president greeted the prime minister in the oval office he talked about areas of commonlety between the countries and then there was an expanded bilateral meeting between the two countries where they talked about more issues. and the president with the official twitter greeting to the prime minister tweeting a promotional tweet for the press conference while we know the official announcement of this visit said the goal was to address global conflicts and promote economic prosperity there is a wide range of topics .the president touched on military spending, the trade deficit with italy as well as

geopolitics. the relationship between the u.s. and italy is very key the white house says when it comes to afghanistan and overall recommendations in the middle east one of italy's priorities is basically to offer as a counterweight in the president's battles against france and germany. both of the leaders are iuorio skeptic doubters of the value of the european union block that's especially interesting considering the agreement that the president struck last week with the european union on trade. as far as the joint press conference, the questions from the media could be wide ranging as well. there could be questions about the president's threat to shut down the government which would of course be right ahead of the mid-terms and then a potential course change by his personal attorney on the russia investigation, rudy giuliani in several television interviews this morning said collusion is not a crime. that is a change from the prior position of there was no collusion. that is certainly a nuance that

media especially are going to want to pick apart and figure out. and we'll see if that comes up in the question session here today. guys. >> kayla, thank you very much. joining us is michelle karps o cabrera. tony fratato, former white house press secretary and torey whiting, the economist at the heritage foundation. michelle, let's kick it off with you you're in washington for an brf with mike pompeo what do you expect. >> we watched him and the rest of the cabinet walk in this may get under at any moment tyler. what's interesting about in particular press conference for me is that the italian prime minister actually isn't the most influential -- or most important person in italian politics right now. italian politics is weirdly complicated. you don't vote for a person you vote for the party there were two parties popular neither wanted to give up to the other guy so they got in quiet

lawyer the much more important person in italy is mat owe salvini with trumpian qualities he tweets a lot, a lot of concerns about immigration and he is very popular because of that particular issue right now. that's why i think the u.s. president donald trump sees he has a lot in common with the current leadership of italy. >> you know, tony, we had the same conversation about the ec president juncker last week. does he have the authority to make commitments on behalf of the eu does prime minister conte have authority it make commitments on behalf of his government when he doesn't have the authority within his own country that, you know, an angela merkel or macron in france what do we expect really from the visit here. >> well, i think the optics are really important for both countries, more for italy than

for president trump. look, president trump does like to be seen with leaders on the international. >> tony, i'm sorry we have to. >> this one he has a rep pore. >> tony can i interrupt? i'm sorry the president and prime minister conte have taken the podiums. >> i'm honored to welcome my new friend -- we got along well from the beginning, prime minister guiseppe conte to the white house. mr. prime minister, i want to begin by congratulating you once again on your tremendous victory in italy it was something that all the world was watching and it excited the people all across italy and i can tell you all across the united states as well. congratulations. in your election the italian nation has reaffirmed the great traditions of sovereignty, law and accountability that stretch all the way back to ancient

rome this proud heritage sustains our civilization and must be always defended today prime minister conte and i are pleased to announce a new strategic dialogue between italy and the united states that will enhance cooperation on a range of issues. this includes joint security efforts in the mediterranean where we recognize italy's leadership role in the stabilization of libya and north africa they've been terrific. both the prime minister and are focused on the need to protect our nations from terrorism and uncontrolled migration our countries have learned through hard experience that border security is national security they are one and the same. like the united states, italy is currently under enormous strain as a result of illegal immigration.

and they fought it hard. and the prime minister, frankly, is with us today because of illegal immigration. italy got tired of it. they didn't want it any longer the people of italy have borne a great part of the burden for europe through the course of the migration crisis i applaud the prime minister for his bold leadership, truly bold. and i hope more leaders will follow this example including leaders in europe. the prime minister and i are united in our conviction that strong nations must have strong borders. we have a solemn obligation to protect our citizens and their quality of life. my administration is working hard to pass border security legislation, improve vetting and establish a merit-based immigration system which the united states needs very, very importantly, very badly.

as far as the border is concerned, and personally, if we don't get border security, after many, many years of talk within the united states, i would have no problem doing a shutdown. it's time we had proper border security we are the laughing stock of the world. we have the worst immigration laws anywhere in the world in our meeting today, the prime minister and i discussed ways to enhance our cooperation in the fight against terrorism. and it also has to do with border security. i want to thank the italian people for italy's contributions to counterterrorism and operations in the coalition to defeat isis where we have had a tremendous success, as you know. and in nato's resolute support mission in afghanistan

the prime minister and i also agree that the brutal regime in iran must never be allowed to possess a nuclear weapon never. we encourage all nations to pressure iran to end the full range of its maligned activities the united states welcomes the partnership of italy in these vital efforts. today we are also addressing the crucial issue of trade and commerce we are working closely with our european partners, including italy, to ensure fair and reciprocal trade a few days aig i met with president juncker of the european commission. we had a great meeting process following that meeting we announced a breakthrough agreement to remove trade barriers and increase united states exports of agriculture, energy and other goods and services to the european union

now is also the perfect time to expand commerce between the united states and italy. america's booming economy, setting records in so many categories, creates enormous opportunities for investment likewise, i recommend investment in italy it's a great place with great people i look forward to working closely with the prime minister to open up new commercial opportunities that will reduce our trade deficit substantially and increase our mutual prosperity mr. prime minister, we discussed our shared goal of combatting unfair foreign trade practices from non-market economies. they are brutal. but we are winning these abuses include subsidies, excess capacity, intellectual property theft, forced technology transfer, currency devaluation and disorganization

caused by state-owned enterprises. in this area, like so many others, cooperation between italy and the united states can make a tremendous difference, not only for our countries but all over the world and it's making a big difference and we're making a big difference, tremendous difference on trade and on fairness but we also have to be fair to the people of the united states and the taxpayers of the united states mr. prime minister, thank you again for joining me for these important discussions. we are both outsiders to politics can you believer it? we are outsiders to politics i look at all the wonderful politicians. and we are both determined to protect the rights and needs and interests and dreams of our citizens and we will do that. i look forward to partnering with you, to build on the incredible friendship between our countries and to creating a brighter future for both the people of italy and the people

of the united states and with that, i just want to again thank you very much for coming to the white house. it is my great honor thank you. >> thank you president trump for this kind invitation, for this warm hospitality, two two months after the formation of my government i take -- i take it as a sign of a special -- the special attention to italy, to me as well though forgive me but i don't want to renounce the privilege for speaking in my wonderful language now >> translator: before all i would like to remember with solidarity to all the families

and all the members of the families, to the victims of the fires that took place recently in california. i'd also like to say a very, very affection it hello to all the friends. so our relationship is a very long one it goes way back and today we have strengthened it even more and i'm extremely happy about this and with this very fruftful encounter here at the white house we have made another step ahead. in order to intensify our cooperation, our work together, to make it even more adequate, visa v., the geopolitical economic situation in the world. from june 1st there is another element that bringing us even

closer, the united states and italy my government and the trump administration are both governments representing change. they were chosen by citizens in order to change the status quo and to improve their live conditions there are so many things that bring us together that unify us in italy as in the united states we are doing what we had promised during our electoral campaign and we are working in order to give answers to the expectations of our citizens so that we won't disappoint them and we don't betray our mandate in italy, in the united states, we are proving that change is possible donald and i have concentrated on a number of topics. and we both have agreed upon and reached the following results which in part were already mentioned today. we will have made a great step ahead. we will start working in italy

it's a directorship booth as it were in the mediterranean between italy and the united states i would say that we are almost twin countries in which italy is becoming a reference point in europe and a privileged interlokter for the united states for the main threats and challenges that we have before us terrorism, for all the crisises that we see in the mediterranean and in particular in regards to libya. secondly, the american administration also recognize that is italy has a leadership role as a promoter country that will lead to the stabilization of libya and of course, this with great respect for the libyan population with the united states we will be working in order to reach these results. and we will decide what needs to

be done in view of in result i am truly thankful to you, donald, for your support thirdly, in terms of immigration, i also described to president trump the innovative approach that italy has put forth. and the european union now has the responsibility to not leave the weight of the management of immigration on the shoulders of the countries of first arrival like italy is. and as you heard, president trump say, we appreciate this contribution which is provided by the italian government, which is providing fruit, good results. we are talking about an approach, a multilevel approach in order to try to resolve the phenomenon of immigration, not because of an emergency but becauses in a structural approach i want to underline this is in line with the position of

president trump, which goes from the respected dignity of people to make sure that fundamental rights are protected and it wants to make sure that these rights are trampled over because these people are in the hands of criminal bands. i also want to underline that the world day for the kpj of human beings is going to be celebrated i also told president trump that i'm very satisfied for the understanding that was reached very recently between ourselves and the of the of the european commission juncker i believe that this understanding is fundamental and we have to working upon it immediately, bringing our efforts together to make sure that european, american, italian citizens receive the benefits of a more equitable trade

relationship, which is completely reciprocal. and once again as far as russia is concerned, you know that italy is favorable to a dialogue with russia. but italy also considers that the dialogue between the united states and russia is fundamental so that we can have positive results in a more global perspective for stability and security purposes. in terms of energy security, president trump and i also found ourselves in agreement with the need to make sure that there is a greater diversation for the source of norg and to make sure the energy roots are diversified as well. and finally i'm personally sure we can improve and increase the relationship with the united states at all levels, and in

particular in space and aerospace fields we already have a great partnership between the italian space agency and nasa. so we hope that aerospace will bring together american technology, italian technology, so that we can launch new aircraft that cross the atmosphere and will be able to bring the united states and italy together in a -- in an hour and a half. this is a project i'd like to speak in detail with the american administration. i thank you for your attention >> please sager. jennmy thank you. >> daily caller. >> thank you, mr. president. to follow up on what you were saying about the shutdown, sir, are you saying that you would be willing to shut the government down in september if it does not fully fund $25 billion worth of

your border wall and also deliver all of the immigration priorities that you listed in your tweet or are you leaving some room for negotiation is there. >> i will always leave room for negotiation. but this has been many years this isn't just trump administration we are new there's been many years even decades. we have immigration laws, border security, all sorts of things going on that are -- it's disgraceful. we are doing a fomle nol job setting records but we have laws that don't work. we are working around those laws it's unfortunate i have to take my hat off to the border patrols for the law enforcement, to i.c.e., which really has been maligned by the democrats, the job they do they go into the ms-13 nests, nests of bad, bad people, killers in many cases. and they go in there fearless and a incredible job and get them out they either go to jail or get out of the country i just want to take my hat off

to i.c.e. and the brave people that have really been maligned by the democrats we need border security. without a border, as this gentleman can tell you also, because the prime minister really was -- it was a big factor in his win and other people's win in italy. but it was a big factor in my win. we need boert skurtd that includes the wall but it includes many other things we have to end the lottery we have to end the chain -- the chain is like a disaster you bring one person in and you end up with 32 people. we have to end these horrible catch and relief -- release principles where you catch somebody take their name and then release them. you don't even know who they are. and then they're supposed to come back to a court case where they want to us hire thousands of judges. the whole thing is ridiculous. and we have to change our laws and we do that through congress.

i would certainly be willing to close it down to get it done as you know we are already approving things in various bills including we are going to be taking care of the military we always put the military and law enforcement very high. but i would be certainly willing to consider a shutdown if we don't get proper border security thank you. please. >> sir just to follow up quickly, is the $25 a red line for you? >> i have no red line, unlike president obama. i just want great border security okay. >> yeah. >> mr. prime minister, here in the united states amongst our comment tear there was a consensus that the president's appearance at the g 7 and nato damaged our relationship with knows institutions as a member of both of those institutions, what is your assessment of the president's appearance at both >> translator: both the g 7 and

nato at nato we had a very fruitful kpj of views and opinions and our positions i think that all the positions and stances which are expressed with clarity and provide a contribution also to review well-established positions are more than welcome. there is a fruitful kpj. we had a fruitful exchange both at the nato and g 7 summit in different frameworks in the framework of g 7 summit we agreed on the need for reforming the wto, the system of the wto it's a year old system which considered china as an emerging country. you can understand that applying the same rules after years with the privileges granted to an

emerging country clearly means having a system which is not well functioning and not well rational so a clear stance taken by president trump which i personally share fairly, he expressed a position and the need to rebalance the expenditure which is borne traditionally by the united states which is dittes proportionate. these are absolutely reasonable positions and stances and i personally take them into great account. and i will be personally the carrier of the message and try the make the other understand the positions as well. we must negotiate united states to find the balance in the interest of italian citizens, americans citizens and european citizens. >> i would add to that but i want to thank you for what you said because it's been unfair to the united states. we had a very good g 7 meeting

process. that's where guiseppe and i became friends i think we were more closely aligned than anybody else in the room but it was a great meeting in every respect i would say it was god and nato in particular, i went to nato. and nato was essentially going out of business because people weren't paying and it was going down, down, down you have to look at the line i came along last year and in a fairly nice tone i said you got to pay and they paid $44 billion more and this year i said it in a stronger tone. and they are paying $hundreds of billions of more over the years. and nato will be strong again. and if you speak to secretary general stoltenberg, i think the biggest fan of trump, because he said we couldn't collect money until president trump came along. and he said last year we collected $44 billion. and this year the money is pouring in but it's like the prime minister

said we really talk about imbalance. we were treated unfairly the united states was treated very, very unfairly. because we are shouldering anywhere from 70 to 90% of the cost of nato that's not fair. it's not fair. especially when you take germany and germany's paying 1%, a little more than 1%. and they're buying and paying tremendous amounts of money to russia so we're supposed to protect countries from russia but they are paying russia billions and billions of dollars for the energy not good not a good situation and i let it be known. so the bottom line is the nato countries are now paying the a lot more money and nato has become stronger because of it. and i appreciate your answer thank you. please >> translator: sorry donald, may i add something. i'm saying that as a person has 80 huge experience as a lawyer you have a president who has a

strong supporter and advocate of the interests of the american people and the american country is a great negotiator. and i'm told there is maria who wants to ask a question. >> the question must be asked. >> the italian economied underperforms regularly. given stellar success in the u.s. economy, what do you think would reignite the italian economy? and what role do you think the eu should play in it and president conte, do you think president trump's formula would work in italy as well? >> well i can answer the biggest thing italy needs is great leadership and they have it right now. i honestly believe the prime minister is going to do a tremendous job on economic development. in addition to borders, you know, for economic development you need borders also. but you have a man that's going

to do a terrific job i have no doubt about it at all. he knows how to sell he knows how to promote a great product. because they make among the greatest products. i won't mention their names but they are great i have some of them. and italy makes great product and i think it's going to do well a economically and we are there to help. we have had record numbers i've been here for a little more than a year and a half. and we have had record numbers we have had record -- we have had numbers that nobody believed possible, especially if you look at one particular fact that was not reported very much, trade deficit, $25 billion reduction in the trade deficit for the quarter. and i think steve mnuchin of treasury is here mike pompeo nobody would have thought that was quickly to possible so quickly. $52 billion reduction in the trade deficit for the quarter.

i think italy will do the same thing slightly different numbers but the same thing. >> what role should the european union play in the matter. >> excuse me what. >> what role do you think the european union should play in the reignition. >> that's up to them i don't want to get strofd in that the european union jean claude and i had a fantastic meeting. we had a hard time and i mentioned tariffs on cars. and we got along very well very well. i think they're going to treat us very fairly and we are treating them fairly. as you know it's been a one-way street the european union totally has taken advantage of the united states we can't let that happen. not fair to the united states. and by the way, italy has a $31 surplus with the united states meaning, we have a $31 trade deficit with italy and we discussed that. and we'll work something out we're going to work something out. okay thank you.

>> translator: as far as i'm concerned i'm very envious very envious of the records and the growth figures of the american economy we discussed this before with donald somehow, these are systems which cannot be compared because they are orders of magnitudes which are very different i'm envious and ambitious at the same time as government leader i'm ambitious for my economy to do a lot, much more than was done in the past we are preparing a series of structural reforms which we will be be submitting to the attention of the european partners to -- i do not want the tax reform to be set aside it was a leverage in this country for economic growth. and it presents if well constructed a represents a leverage for economic growth by working also on extreme

lining and red tape, administrations regulations we are trying to eliminate corruption pockets we are trying to speed up the civil trials, the procedures, the proceedings of all sectors together with the citizenship income which will support the people who lose a job to find a new one without -- these are all the reforms we considered to be a positive element to represent an economic leverage for our country which can then try and reach the growth >> this -- one of the biggest things we have done obviously the massive tax cuts but maybe equal to would be the tremendous cuts in regulation. and i know italy well. and they have a lot of regulation and i have no doubt that the prime minister guiseppe will be working marred on that but i think guiseppe i can say from our standpoint, one of the

most important things we did is cutting massively the horrible regulations. and i believe so strongly in the environment. i want the cleanest air, cleanest water, cleanest everything, the best everything. but you had ten regulations for every point in some cases. it was ridiculous. it would take many years to get a highway or road approved we have that way down. we have it down to two years and hopefully down to one. and may be rejected but at least it's going to go quick we want regulation but it's got to be cut to a minimum and do the trick. and i think that italy will follow suit. i know they've looked at it strongly and are going to follow schutt okay thank you. thank you very much. robert aire rampanten of reuters, please. roberta. hello roberta. >> thank you, mr. president. you spoke a bit about iran today. and your discussions and i'm wondering if you could tell us what you think iran needs to do to reduce some of the tensions

and you've met with the leaders of north korea and russia. are you prepared also -- are you willing to meet with president rouhani and under what conditions and have there been preliminary discussions about something like that. >> i'll meet with anybody. i believe in meeting the nlts said it better than anybody can see it speaking to other people especially when talking about potentials of war and death, and famine, and lots of other things, you meet there is nothing wrong with meeting. we met as you know with chairman kim. and you haven't had a missile fired off in nine months we got our prisoners become. so many things have happened so positive but meeting with people -- i had a great meeting in my opinion, the fake news didn't cover it that way but i had a great meeting with president putin of refresh. i think it was a great meeting in terms of the future, in terms of the safety and economic development and protecting

israel and protecting everybody i thought it was a great meeting. great meeting with nato pch i just explained nato. hundreds of billions of more money will be paid into nato, the coughers of nato and already has. i would certainly meet with iran if they wanted to. i do not don't know if they're ready. but i ened the iran deal it was a ridiculous deal i do believe they will end up wanting to meet. i'm ready to meet any time they want to. i don't do that sfr strength or weakness i think it's an appropriate thing to do. if we could work something out that's meaningful, not the waste of paper that the other deal was, i would certainly be willing to meet. >> do you have preconditions for that meeting >> no preconditions, no. they want to meet i'll meet any time they want any time they want it's good for the country, good for them good for us and good for the world. no preconditions if they want to meet i'll meet

>> prime minister, i wanted to ask if you and the president -- you talked about the need to stabilize libya. i wanted to if you and the president discussed working together on energy production in libya in some way. did you discuss oil pruks in libya? do you see a way for the united states to become involved there perhaps with italy's help? >> translator: we discussed the problem of stabilizing libya and obviously of the security to be guaranteed for the whole the iranian area you see it's not only a problem of the migration routes, many of the migration routes from african countries concentrate in the libyan jury. but it's also problem of security in general. because, for instance, through

the migration routes foreign fighters might reach the european territory agents which could -- who could carry the threat we didn't discuss in details the problems certainly it is our intention to respect the libyan population. we are not driven by economic interests. we are not driven by the problem of energy supply our interest and from this point of view i can announce but i already said that i'm going to organize in agreement with president trump. i'm going to organize a conference on libya. we would like to deal and discuss all of the issues relating to the libyan people involving all of the stake holders, actors pro tag invites in the whole of the mediterranean. we are going to discuss economic aspects but also social aspects.

the protection of civil rights, the problem of constitutional process, of issues and passing laws so as to enable libya in particular to get to democratic elections in a condition of the utmost stability i'm told that another reporter wants to ask a question. thank you. >> reporter: i have a question to prime minister conte and prime minister trump there are three pending issues on the table with the american administration one of them is sanctions to russia since italy, the two main government parties in italy said that they want to lift the sanctions on russia, what's the official position by the

government since the american administration is asking for these sanctions to be kept the other two points the tiap glass pipeline the american department asked to continue with the work while there are some ambiguous positions in italy related to the project. and the f-35 program what is italy going to do? will italy confirm the program. >> i'm going to answer in relation to sanctions on russia. i'm going to repeat what i said before, o, because i've already taken a stance in all of the international summits. i'm going to be boring but this confirms the position of the italian government is not changing in this respect we are open to dialogue with russia we do believe that russia is -- plays a fundamental role in all international geopolitical crisis so thinking that russia can be kept out of a throwing, a as president trump said if we want to solve problems we cannot

choose the counterparts to deal with we must accept and sit at the table and negotiate and have dialogue with those who are in reality our counterparts as far as the sanctions system specifically is concerned, i am well aaware that the system stemming from the minimusk agreements and it's in rarpd to the implement aches of the minsk agreement. it's unthirchlable to lift overnight the sanctions. however, exactly because we are open to dialogue with russia, the position of my government has been stated straight away is to make sure that the system of sanctions doesn't affect the civic society, doesn't affect the economy of the small and medium size enterprises in russia

italy from this point of view has a tradition of intense economic recommendations with russia in this respect so in order to stress once again with a final statement, sanctions against russia are not and cannot represent an end. second issue, transadriatic pipeline i discussed with president trump. and i reported to him that my government is well aware of the fact that it's a strategic working in terms of energy supply to italy and to the south of europe and the mediterranean area we are perfectly aware of the fact that this can provide a contribution also in the renewal of the energy system and the elimination of coal, which is part of our program. at the same time, i correctly informed president trump that

there are some uncertaintities by local communities the communities where the pipeline will land since problems must be faced directly and not trying to avoid them, once become to italy as soon as possible i will discuss the issue with the competent ministers and go and meet the local mayors and local communities trying to find a solution which will take into account the concerns of local communities. as far as the third point is concern, f-35. as you note you know this is a program which was decided in 2002 that the agreements were signed in 2002 so it's a big period of time in terms of talking about needs for defense and security as a government we are responsibly evaluating this file as you know there is already a

process of orders being issued which is taking place. and these orders are issued much earlier because the work is really complex we will continue to follow this file and we'll make all the necessary choices in a very cautious way in view of the needs of defense and security, being fully transparent with our partner, the trump administration >> thank you very much sanctions on russia will remain as is. as far as the pipeline is concerned, i'd like to see a competing pipeline mr. prime minister i hope you will do that competing plin. and we are already talking to the european union about building anywhere from nine to 11 ports which any will pay for so that we can ship our lng over to various parts of europe and that will be more competition. but the sanctions on russia will

remain as is okay thank you very much, everybody thank you. thank you. >> thank you thank you, everyone. >> the president wrapping up his joint press conference with the italian prime minister conte and we're rewelcoming our panel from the former white house sectorry fratato torrey whiting, the the heritage foundation and michelle is here too i'll throw a jump ball to you michelle as what you heard as the most significant thing there. two things stood out to me the first was his -- yoeptd whether he said this in such strong terms his willingness to meet with the iranian leadership if they ared ready to meet with him with no preconditions. >> i think that's the big headline from everything we just heard. i would say that's headline number one as for the rest of it you understand why the two gentleman get along so well. they agree on nearly everything. they have complaints with

immigration. they see eye to who on having more discussions with russia, et cetera and let italian prime minister also defended him on the president's performance at the g 7 so controversial and criticized by so many other members of the g 7 but yes absolutely the headline is the willingness to sit down with rouhani of iran with no preconditions. and the rest as expected >> kayla, kayla tausche joins as well covering the event for us he at the white house. cale oi your impressions michelle and i just sort of murlt lir growing that the news for me was the full throated embrace of the idea of meeting with iran's leader, no preconditions is. >> that was certainly something that had been an open question since the president did meet with other leaders like chairman kim from north korea, like president putin of russia. the president saying i will meet with anybody they want to meet i will take the meeting. we will see whether iran chooses to respond to that

remember the sanctions from the treasury department go back in place a week from today. some other headlines i thought were interesting were the president's basic flexibility on immigration. he said that he wants the principles that he laid out in the twet and he is willing to shut down the government over it but he says he is always leaving room for negotiation and the $25 billion he had been seeking for the wall at the southern border is by no means a red line. that will be music to the ears of many republicans who feared the president would shut down the government just weeks before the midterm elections. but it does appear that while the president is sowers about that issue he has flexibility. he also put more detail on the agreementthat the u.s. struck with the eu last week on trade he said that europe is in the process of building nine to 11 lng terminals. of course that is the way that the u.s. would be able to export more lng to europe that was one part of last week's trade agreement.

and people were wondering exactly how that would work, since it's the private sector that has to buy the lng, not governments or even blocks to have the ports built which the president says europe will pay for will be in one step in that direction. >> let me bring you back to the conversation then back to you tony what did you hear with respect to trade, torey, between the united states and the eu and the united states and italy? the president pointing out that italy makes great products i have some of them. i'm not sure what he was talking about there backup but i guess i does. >> for me the i think the post important thing out of the last week or two in our relations with europe and italy today is that the president has admitted that trade can be a win/win. and that's a huge change in rhetoric from this white house previously it has seemed like the president thinks that if another country is winning on trade it means america is losing that has been a complete flip.

we now realize that when we work with partners in the eu like italy that we can all be better off. >> but, toni don't you believe that prime minister conte don't see eye to eye on trade. >> not on trade. they certainly do as we saw on immigration and maybe a couple of other issues. but definitely not on trade. i mean, italy's economy is very weak right now the government is relatively weak government. conte is an obscure law professor before becoming prime minister they depend on auto the exports ob apparel exports and steele exports. so they are subject to the tariffs and steel. they are suffering one thing on iran the iranianens about a week aka said they turned down offers from the u.s. administration to meet so essentially to follow up on that in that context if that's still the case. >> go ahead, bill.

>> well, michelle. we were scrambling here talking about et transatlantic pipeline and the possibility -- there is a difference between ports and shipping and/or laying a pipe and trying to get the lng over there. that's taking forever. it's a bit -- i'll ache a page out of mathis anticipate book that's a bit of a pipe treem don't you think. >> i think so. i got confused are they talking about a second pipeline besides the controversial one that the germans are building with the russians to get their gas? clearly that would be beyond the ports that kayla highlighted earlier would be another big dramatic, competing pipeline would be an enormous thing. >> that was discuss the during the obama administration. >> yeah. >> when russia was threatening to cut off the natural gas supply. >> we can't get a tunnel between new jersey and manhattan. >> how are we getting a plin to

europe toni. >> they are talking a pipeline from azerbaijan to italy it's a big dispute in this government, a coalition government between the two coalition majority members as to whether that should be built and also the -- talking about going building tunnels, a tunnel to france that there is a dispute there as well. >> so, michelle, i thought it was interesting that the italian prime minister really sort of the fell in the with the president on -- on his message of trade the word china never came up but it was unmistakable that that's who the president was talking about when he talked about, you know, intellectual property within non-tariff trade barriers and the italian prime minister said the wto effectively is broken, calling china an emerging company. and therefore gets certain gets

dispositions favorable for china. mcis no longer an emerging country. there was a confluence there. >> absolutely for sure the one thing i would say is that because of the trade disputes that the president is having with the eu it obscures what would normally be common cause with the europeans they have long had complaints about china as well. they have done steel tariffs on china lopping before the u.s. did. they have had lots of concerns they have also stopped lots of deals that they didn't want to see happen things that another -- at other times we would have called protection i was except now we have a president who agrees with knows positions. but again we don't hear about that because we get focused on what has been the u.s.'s -- and the president's very strong stance against the eu itself when it comes to trade. >> all right we have to leave it there. michelle thank you see you back here tomorrow toni torey thanks very much. and as we mentioned you have an interview you want to tell us about.

>> secretary of state mike pompeo in the room there but mike pompeo this morning did a big economic policy speech even though he is secretary of state. he announcesed a new era promoting economic inincentive he is from the u.s. it the u.s.y call the endo pacific region that's everything from the west coast to the united states, the west coast of india. a lot of people see this as the u.s. fighting back against the one belt, one road policy from the chinese which critics call economic imperyiialism we'll ask about the president wanting to sit down with the president of the iran with no rules. back to you. >> we look forward to that coming up there. the dow is down by autbo 90 points, technology stocks down sharply. more "power lunch. after this of time to get our patient to the hospital with good results. we call that the golden hour.

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stocks taking a leg lower. nasdaq again taking the biggest beating. on track for its biggest loss since late march let's bring in steve grasso, stewart franco, and the securities managing director hi, there, gentlemen what do you make of the market

action here today? technology again dragging us lower. biggest drag here for the sectors. >> you have to decide is this the rotation everyone's talking about? we've been waiting for this forever to see those quote-unquote overvalued names come out of the market >> they mean the faang names >> exactly the faang name wheres, the large cap sector we do have the fed meeting this end, a lot of moving parts i think people will refind a lot of these tech names going forward. >> what do you think is it over >> no, i don't think we'll probably see a bit more of this kind of activity, but essentially you see this quite often where you'll have something hit hard on a friday, a bit of carry through during the week, but at some point they'll turn around. there's still value in these

names. the reason that people were buying them is still present >> nice tie, by the way. >> is that my good friend griffith >> that's dr. griffith to you. the money coming out of the faang stocks, where's it going to go? there's talk right now of the growth market turning into a value market >> i think there's something to that but these markets remain so competitive. and what we're seeing right now is sort of chiselled activity based on when we see these news items. those stocks are disappointing that are just getting hammered and those that are providing solace are getting a lot of attention now. on a percentage basis really unremarkable here. >> bill, why don't you take a look right now, look at the financials they've rallied early, then they

got beat on and now on the radar ever since they reported they popped quite significantly they've had their buy backs reinstituted or they've escalated their buy backs. so that could be an area that you see money start to go into out of tech. but i do believe ultimately if you want growth, you go for growth, you still want the tech names. >> thank you both. appreciate it. >> two chiselled men right there. big news on ge the stock near session highs we've got details coming right up and everything into the cloud. it's all so... smart. but how do you work with it? ask this farmer. he's using satellite data to help increase crop yields. that's smart for the food we eat. at this port, supply chains are becoming more transparent with blockchain. that's smart for millions of shipments. in this lab, researchers are working with watson to help them find new treatments.

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quem back to "power lunch. we want to call your attention to what's happening right now with shares of again general electric on the heels of a wall street journal report citing sources familiar that general electric has hired banks to possibly put its ge unit up for sale this is something that perhaps would be a defining moment for ge in trying to get out some of the businesses that former ge chairman and ceo built-up. we did reach out to general electric for comment, and they say they do not comment on rumors still a little bit up on today's session. back over to you guys. >> it does look like unbuilding

now is the jeff built. who unbuilt the house jack built? >> or tried to >> remember all those digital commercials. thanks folks for watching "power lunch. "closing bell" starts right now. it's time for the "closing bell." i'm wilfred frost in san diego coming up an interview with the jp morgan and ceo jeremy dimon i'm david, cbs shares falling today after sexual misconduct allegations were leveled. the cbs board meet this afternoon and we will have the details. and i'm sara eisen faang under pressure facebook, amazon, netflix, google we'll have more on what it'll mean for investors "closing bell" starts right now.