starting to pop up more and more and more, i think, you know, big numbers will be big and now they're small. i remember being a kid 1 $100,000 house only one day i can own $100,000 house. if only one day -- if only one day this company had a trillion dollar market cap. you bust through those barriers, and then they become the floor you know, i try not to put a whole lot of pretense into, well, we're hitting this number, so everything must be different. >> yeah. appreciate the time, as always, mark wrrks thanks for calling in >> it's always fun, guys appreciate the time. >> mark cuban joining us there that's it for us today jim, thank you so much for being here "power lunch" starts now >> thanks, guys. i'm melissa lee. fears will turkey's financial crisis spreading around the world. will turkey's turmoil be contained? we'll debate and head live to istanbul for the latest. elan musk getting more details on his tweet that he has secured funding for taking tesla private. shares are moving lower right now. the very latest on the drama and

what analysts are now saying about the stock. he doesn't just talk the talk. he walks the walk. mike rowe on growing jobs, the skilled worker shortage, and the state of the american economy. "power lunch" starts right now. >> materials and industrials have been the big laggards, and gold loses its shine prices falling to its lowest level in 17 months, and oil prices are down sharply as well. crude off in new york by more than 2%. we'll have more on what's taking that down straight ahead

michelle >> thank you, bill i'm michelle car usa cabrera where he we begin with what's unfolding in turkey and its ripple effects argentina's central banks make a big hike in interest rates just 15 minutes ago benchmark rate, and the company is an eye-watering 45% keep in mind it had already been at 40% steve liesman said, no, we are not missing a zero the argentine peso had tumbled in response to a local corruption scandal and turkey's currency crisis. let's get to that. the turkish lira has stabilized. reproaching it -- no i spoke too soon there it is. breaking through the key level right now. several times again in the last 12 hours during asian and european trade as well turkey has been engulfed in a currency crisis for the last few days, and some could argue for the last few weeks, months, maybe years. early this morning the turkish central bank took several measures including allowing the banks -- several think

operations, which market participants are calling a stealth tightening the president does not like it when this he raise interest rates. in the press release the bank says it will take all necessary measures, but most market participants think they haven't done enough, and as we continue to see the lira hit 7 to the dollar, certainly suggests that. let's get to villa marks, live in istanbul for more on what's going on in turkey and everything they're saying. hi, wilham >> hi, michelle. we've been hearing all day and all weekend from that man, the erdogan in what he views as a war against turkey it included in the united states it's, of course, following on from the u.s. decision last week to impose sanctions on two of the ministers around the continued detention of an american pastor andrew brunson in turkey, and we have the tweet from president trump on friday talking about increasing the tariffs on steel and aluminum.

massive part of the -- steel, the fourth largest export. here's how president erdogan -- zplool their euros, liquid gold into lira to prop up the currency that's not a course of action many people here seemingly

prepare to take. >> i was just going to ask you, have you seen any evidence of people listening to him. what about when you go to currency exchange spots? lots of lines, people still trying to get dollars and euros? >> yeah. there's a huge amount of activity there as you can imagine, over the last few days, some of the currency exchange centers, a lot of people there trying to figure out what they can do with their hard currency. those that have to work through liras, of course, especially those involved in import businesses really struggling to make ends meet i was speaking to a cafe owner this morning he imposed a lot of his products, including his coffee and pays for them in dollars that is going to be a real challenge for him going forward. he said along with credit card fees, which, again, often denominate in foreign currencies it's a taste of the challenges that the small business owners here in turkey face. >> thanks, wilham, live in istanbul >> don't keep me from buying my coffee >> exactly >> turkey is a big deal. turkish coffee is a big deal

>> all right >> it's a crisis >> we are watching stocks. of course, they are turning lower. now as markets continue to digest this news out of turkey, bob pasani has been tracking the action at the new york stock exchange where the s&p 500 is just about a point off of the session lows bob. >> yes, and weakness, but not traumaically so. bank weakness, a little industrials, materials commodity stocks have a tough day. take a look at sectors right now. tech is holding off. health care only down fractionally consumer staples fractionally. it's that materials group that got people moving here just let me show you we had a two-month low in oil. energy stocks are having a tough time the oil service names are all down rather noticeably transocean, rowan, halliburton they provide services to the oil industry production stocks are also weak. general material stocks are weak too. the steel names are weak freeport-mcmoran down 1 %. you see different ones aluminum corps for china, that's a double whammy.

the china markets generally weak gold miners, there's a bunch of new lows out there got a lot of emails asking about what's going on with the gold miners barrick gold, that's a two and a half year low. gold corp. two and a half year low as well. the other ones are all weakish as you can see, as for gold, it's not that hard to understand the dollar strengthens, a real problem for gold overall of course, there are a lot of rumors out there that some banks might be selling gold just to get liquidity. i wouldn't say that would be beyond reach nobody is putting out any press released about that one, but that's certainly very much within the realm of possibility. guys, back to you. >> all right, bob. thank you very much. so what do investors do with their money right now? thoughts now from chris, chief investment officer with independent advisor alliance, which has $3 billion under management bruce bittles, chief investment strategist at baird with $203 billion in client assets welcome to both of you at this point we've -- the stronger dollar would be a strain on multi-nationals, and

we are seeing industrials lagging this market today. treasury yields have gone down in a safe haven play as well do you go with that trend at this point, or is it still too early? what do you think? >> well, i think, you know, what's happening in turkey is definitely a symptom of a larger problem in terms of the dollar getting stronger and weakness. at this point in time i think it makes sense to take a look at where options are. they are trying to avoid some of the currency issues. >> they had more, you know, resilience against the strong dollar then a large cap stock would, says and they're traveling -- their price around 18.4 times earnings you get the best of both worlds, better valuation also, you get some of the respite from the stronger dollar >> bruce, what about you

does this present an opportunity somewhere, or are you thinking this is only a short-term trend? sflo certainly turkey will have a difficult time servicing their debt given that a lot of that is denominated in u.s. dollars. that's causing some anxiety for the banks and particularly the banks in europe. i think the focus should really be on china. china's economy has been soft.

>> you're going to stay long because you don't think china is going to do that, or you are, you know, hedging a little bit or getting defensive because you're worried china is going to let the currency fall more >> no, we can't forecast what china is going to do, but i think there's some other outside influences that are taking place right here number one, the market has been up almost six weeks in a row you might expect some kind of pullback number two, we've had a terrific surge in corporate earnings. that has really failed to produce a broad based rally in the stock market the market has been increasingly dependent on large cap tech stocks to carry the load, and in addition to that, we're entering a very weak seasonal period in the market particularly in front of the midterm elections.

we think the best strategy here would be -- verify in those areas that are acting pretty well, and those are defensive sectors that include health care, consumer staples, and utilities. >> chris, it sounds like you are recommending investors to pay attention to what's going on globally and reallocate, as you said, to midcaps i'm just curious when it comes to your view if there is contagion -- >> we're going to see the spill-over everywhere. i will say it is a reason to be cautious i do think you really do need to watch out what's happening with tariffs. i agree that china being the second largest economy in the world is going to be a much bigger event for all markets,

including the u.s. market, and so that bears watching i would just say over the next few months you need to be cautious eventually we'll get through the trade war concerns and get through what's happening with tariffs, but i think we could be in for a bumpy ride in the short run, and for that reason i would be more cautious now, if you look through that and say the economy is doing really well, we just had a 4.1% gdp growth, we've got corporate profits doing fantastic around 23.4% growth -- month-over had of month -- or, sorry, year-over-year for each quarter that we've seen so far in the markets, you've got a lot of positives. i wouldn't necessarily be afraid of being long the u.s. market. if anything, you might look for weakness in terms of within financials in the u.s. at least which seem to have much less exposure to turkey than, say, european financials and so i think that's an opportunity to buy and look through it. in the short run i would be cautious i think we have more volatility ahead, and i think turkey is just one sign of that. >> a lot of uncertainty at this point. chris and bruce. thank you both for joining us.

>> what do we get after the tweets sent tesla shares soaring. now what elan musk meant by funding secured. president trump going after harley davidson sending that stock lower. did he really call for a boycott? that's coming up on "power nch. see that's funny, i thought you traded options. i'm not really a 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

welcome back elan musk trying to clarify or explain what he meant by that funding secured, but he mentioned in the infamous tweet about taking tesla private last week as you saw, their shares continue to move lower phil lebeau joins us now from chicago with the latest. phil >> bill, it's still unclear why it took elan musk six days to give us this explanation for what he meant by the tweet that mentioned funding secured. which you look at the privatization timeline or discussion as elan musk outlined it, he said, look, i've had several conversations with the saudi sovereign fund it included a meeting on july 31 sz then he writes, i left the july 31st meeting with no question that a deal with the saudi

sovereign fund could be closed, and that it was just a matter of getting the process moving this is why i referred to "funding secured" in the august 7th announcement it wasn't an announcement. it was a tweet he adds, "to be clear, when i made the public announcement, just as with this blog post and all other discussions i have had on this topic, i am speaking for myself as a potential bidder for tesla. not speaking for the company speaking for himself. perhaps a little bit of information that helps us understand elan musk's thought process last tuesday. >> what was so interesting, phil, is that he said he believed two-thirds of current investors would likely opt for

remaining private deal where he go the that number, i don't know i imagine you don't know either. >> no, i don't think anybody knows. >> funding would be secured based on that thesis, that doesn't seem very secure in and of itself. >> no. i don't think anybody -- look, i think if you sat him down and said where do you get this two-thirds number, he would say, well, look, i think there are a lot of investors out there who believe in what we do at tesla, and that's why the stock price is as high as it is. i wouldn't really argue with him about that, but i don't know where he gets the two-thirds.

all of the major, the largest shareholders in tesla, and i think the top five or six, you know, if you look at most of those, those institutions that have held shares at tesla, i think it's been a fairly consistent holding of theirs now, how much they have increased it or decreased it over time, i think you would have to go back and take a look at the sales that have taken place, but it's a fairly substantial list >> all right phil, thanks phil lebeau in chicago well, mark cuban speaking on cnbc moments ago weighing in on elan musk. >> when you invest in an entrepreneur, you get the entrepreneur, and elan is quite the entrepreneur how can anybody expect anything different? >> let's talk more about tesla's future joining us now is james albertine, senior analyst at consumer edge research

janly, gra et to have you with us i'm going to start off right with the question that michelle had posed to phil, and that is how -- do you have any clarity on where the two-thirds number could be from, and based on the investor base and how they had held the stock in the past, is it work that two-thirds would opt to remain in, and i am also just curious is if a large fund like a fidelity, for instance, major shareholder of tesla, would be able to maintain such a large stake in a completely private company. >> yeah. well, great question first of all, thank you for having me. good afternoon look, this is a little bit of a side show from the main issue at hand, which is tracking the profitability. why i bring that up, you know, in a prior life in my career i worked at a place that provided debt financing for private equity buy-outs. there are -- there's shorts that have to happen there's risk management. at the end of the day to

underwrite a deal, regardless of how long any holder has had the stock, you know, requires, you know, a significant period of time right? we're policing the forest through the trees, but at the end of the day, i think, you know, tracking profitability is what we were focused on before that's what we're still focused on it's the driver of the stock i still think everything relies on deliveries and tracking profitability, cash flow positive in the back half of this year. >> i think the reason we bring it all up, jaime, is because elan musk's future could be at stake here right? when we start talking about the s.e.c., et cetera. that's why we spend so much time figuring out was funding secured or not would you argue that he is super important to the future of this

company, that he is getting ahead of it? >> yeah, and i apologize i don't want to come across as i'm discounting the questions here and certainly i think your point is, in fact, right it's critical that his staying or remaining in the company, and, look, if you had asked us that after the first quarter conference call when he sort of blew up on some of our competitors publicly, the question we were getting from investors was what is this stock worth without elan fast forward now three months. i think all he is really doing on some level is arguing against, you know, his relevance. the company is still ramping production they're still ramping towards profitability irrespective of what he is tweeting. you know, presumably all i think is really happening here is i think there's a lot of really smart people behind elan, and if anything, he is making a case, unfortunately, for the board or large shareholders to say, you know, maybe he is not as critical to the day to day and maybe he is more of a liability. >> well, you know, even mark cuban admitted we cut him a lot of slack calling him an

entrepreneur it's elan being elan this time around with the funding secured tweet, was that stock manipulation in this case? >> i'm not a lawyer. i definitely don't want to go too far on that. >> we're not in a position to say yes or no was that market manipulation >> you started this whole thing saying we're missing the forest through the trees here, and then there's a series of committee meetings that need to take place. bottom line, you don't think funding is secured based on what elan wrote in that blog post citing one managing director at the saudi sovereign wealth fund? >> well, i don't think one fund can get it done presumably i don't know anything about the

saudis wealth fund in terms of their task on individual holdings he may have had conversations with, you know, long-term sort of futurists that believe in him, believe in the objective, believe in the disruptive capability of tesla and ez. >> got it. appreciate it. >>. harley davidson has gone from trump darling to tweet target we're going to tell you what the president is saying now. and right now there are more open jobs than people who are looking for those jobs we're going to ask tv host mike

rowe why employers can't find people for those open positions. power lunch will be right back

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>> the turb irk lira down 20% in a week will the country be forced to act, and could it lead ia t spill-over effect. we're talking turkey next on "power lunch." our app helps monitor your spending too. and if that's not enough to help you save, we could start a carpool. look at this traffic. don't worry. ok, if that's not enough we'll start a trainpool. oh i have a meeting in five minutes. and if that's still not enough... i got it. we'll just create a shortcut. we'll do anything, seriously anything to help you save. ally. do it right. talking 4th quarter? yes.

>> hello i'm sue herrera. here's your cnbc news update this hour. a strong line of storms is dumping heavy rain on much of the northeast today. heavy downpours are inundating highways across the area, causing commuter nightmares like these outside of philadelphia. new york's five boroughs and part of new jersey are all under a flood watch until midnight tonight. tim cook joining president trump and melania trump from friday night in bedminster the first lady did post this picture to her instagram saying "enjoyed dinner with tim cook last night proud of the job he is doing at apple. big innovations and investments in the u.s." a corner office shakeup at netflix. company cfo david wells says he

is stepping down after some 14 years with the streaming giant wells says he intends to stay until a successor is chosen. and caught on camera as first responders in minnesota rescue a group of women stranded on a huge rainbow unicorn float. yep. you heard me right a huge unicorn float the officers initially stopped to photograph the rather unusual site before noticing the raft was basically stuck in the reef. after a few tries with a lasso, they were able to pull the swimmers to safety you can't make it up >> i'm sitting here with two ladies strong personalities.

this had to have been killing sarah eisen to be on vacation when this whole thing was starting to break, right >> it was. of course, bill. i had plenty of time to read my history. that's the question. turkey's currency crisis a trigger for a bigger, broader global crisis. it started with the crash in the tie bot, and it spread to indonesia, philippines, across the continent. currency collapses, bank failures, recessions there are some similarities to talk about with turkey a massive debt bomb, and this is my currency crash that's so dangerous, and what we saw back in asia and russia back in 1998. turkey has been on a borrowing binge.

>> the beef with the u.s. over the relief of a pastor, that's unique and i should say emerging markets are in much better financial shape. their currencies are trading more freely than we saw back then but vulnerabilities do exist political problems, high debt loads, sanctions, deteriorating relations with the u.s. over trade. it's all being exposed right now, and it's why we need to be watching currencies in china, russia, south africa, mexico for the sparks of contagion. the federal reserve is raising rates, guys. that takes some of the shine off

emerging markets, exposes those problems in the emerging world so far its currency is under control, literally, from the chinese authorities, and it was actually a worse fall in 2015, but we will be watching it, michelle >> yeah. definitely thank you for that rundown, sarah. good explainer, where how serious is the financial crisis in turkey? will it spread to owe emerging markets? joining us now on the cnbc newsline, former asian chairman stephen roach, now a senior fellow at yale you heard sarah's rundown here on the one hand. on the other hand, what do you think ultimately turkey's currency crisis means for the rest of the world? >> well, michelle, thanks. sarah did touch on most of the key issues that i and others are watching

>> it's met with largely incremental actions by the central bank then you have to worry about where this is going with respect to turkey. the markets want much more decisive action, and erogan -- >> argentina got religion. it just went to 40%. today they raised it to 45%. is that what you are talking about something does turkey need to do something like that? >> turkey needs a really large and strong monetary tighterning. you asked a question about contagion, and that's always tricky, but when you look at emerging markets today relative to 1997, and, again, sarah touched on this.

you do see a multiple currency regime you see a large build -up in foreign exchange reserves where are you see lower inflation and savings. in large part you see -- and turkey is an exception -- better current account position it's not as compelling as it was back then, but this currency dynamic is worrisome >> when you see banks selling off because of feared exposure to turkey, could there be another mechanism and not just through the meerjing markets, but through the bank exposure right now that could just worsen >> it's possible i wouldn't rule that out there is a lot of european banking exposure in turkey. the one thing that worries me possibly the most in terms of potential contagen is just the unwinding of qe, and qe created

huge ash trauj in high yield emerging markets, and with qe now working the other way. >> like turkey, and potentially others who were benefitted dramatically from this ash trauj. >> right steven, we're at a point this is different this time in that the leader of the country is not looking for help, not looking to stem the tide and the decline of the currency he is hunkering down and telling his central bank don't raise rates. i don't want you to do that. they're, you know, increasing liquidity, which is a stop gap measure, to say the least. is there a point, a pain point, at which the imf could step in or, you know, what do you think happens down the road here >> well, bill, that's a good point. i mean, the pain threshold, i think, ultimately gets judged by

the level of foreign exchange reserves that the country has to manage its currency and, you know, turkey still has apparently, you know, enough reserves to deal with these pressures for the time being you know, as we saw in -- have seen in crisis in years and decades past, those reserves could be depleated quickly i mean, you know, they're at $75 billion in terms of estimated foreign exchange reserves. and, you know, that's down somewhat, but not dramatically, and the imf steps in when that number gets lower. >> they haven't gone to the imf, so that is one possibility they seem very reluctant, as do a lot of countries steven, thanks so much for calling in we appreciate it >> thank you, guys >> meantime, president trump taking another shot at harley davidson on twitter it weekend moran bre morgan brennan is covg

that for us. >> shares of harley davidson are down near session lows right now they've been down 4.5% after a biker spurred trump event at his new jersey golf course on sartd, president trump once again took to twitter yesterday saying, "many harley davidson owners plan to boycott the company if manufacturing moves overseas great. most other companies are coming in our direction, including harley competitors a really bad move. u.s. will soon have a level playing field or better. now, i sat down with ceo matt levitage a few weeks ago to discuss the president's anger can which steps from harley's plans to shift some production overseas >> i think as a business we just deal with what we have to deal with, and we are not a political organization we've worked very hard to be apolitical in how we approach our business and our consumers everywhere in the world. >> now, keep in mind, even as harley expands abroad, some of

that light of the tariffs. motorcycles sold here in the u.s. will continue to be made in the u.s. now, weave been reaching out to u.s. harley dealerships and a key take-away so far, whether it's in north jersey, kansas city, the chicago year or dallas, the rift doesn't seem to be denting sales according to those stores we spoken to. thooes not yet they're having to educate customers on what is a lot of misinformation out there, and as one store manager did tell us, trump has been there two years we've been here 115. guys, back to you. >> morgan, thanks. manageran brennan. >> to the bond market we go. rick santelli is tracking the action at the cme. rick >> hi, melissa lee you know, if you look at one week of two year, you get to see a lot. we're down about a half dozen basis points from where we were trading, and a lot of that continues to be a safe harbor trades related to everything going on emerging marketed if you look at what's going on in ten-year, we're now at the lowest yields since may -- excuse me -- in about five

weeks, but what's interesting on this chart is the fact that we failed right at 3% when we were there, it was an ocean of is 3% really that important? well, obviously there is something significant there. as far as the dollar, which is now at the best level since june of 2017, it's all about which currency you look at if you look at the yen, the yen is also a safe harbor currency, and a july 1st start to that chart will clearly show you that the dollar is the weakest it's been since july 6th. if you look at the euro versus the dollar, you get to see where most of the damage or positives of the dollar index are. the euro versus dollar now trading at the lowest level since july where the dollar index lowest levels since june were going to continue to monitor how that yen continues to fair. bill, back to you. >> all right, rick thanks we'll see you a little bit later. well, as you know, the latest survey shows that there are more open jobs in america right now than people looking for jobs how come we're having a hard

time mafrping willing workers to available positions? up next, we'll ask a man who has -- it says here -- seen it all and done it all, which apparently qualifies him to answer that question the great mike rowe will join us in jusa me t mont ♪ ♪ build and run apps anywhere you like, while keeping your competitors at bay. the ibm cloud. the cloud for smarter business.

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prevagen. healthier brain. better life. zbroirks according to the recent jolt survey there were 6.66 million open jobs in june. industries like construction and manufacturing have a tough time finding skilled labor in this tight labor market it's affecting the housing market, for example. our next guest's charity recently donated $600,000 to individuals pursuing a skilled trade, and he knows a thing or two about tough jobs of course, with us our friend mike rowe, the host of somebody's got to do it. he is the head of microworks and former host of "dirty jobs."

always good to see you welcome back >> nice to be here thanks for having me >> why are we in a situation now where we have this disconnect. there are a lot of jobs, and they're scram begging to find workers. people are still looking for jobs >> the definition of a good job is completely within our perview to define, but we almost never do it in a way that's an accurate representation of the times that we're currently living in. in my view when i started microworks, it was 2008 on labor day. there were 2.3 million jobs according to the feds that existed at that point in time. of those jobs 75% did not require a four-year degree they required training even at the height of the recession when the headline news was all about unemployment, everywhere i was going i saw help wanted signs. for me the disconnect really

began around the issue of p.r. what is an aspirational good job look like in 2008, right today it's 2018. ten years have gone by we have, as you say, 6.6 million available jobs proving perhaps that i have done more harm than good i don't really have a pithy answer for you, but i can tell you this everything is politicized today, including the skills gap the existence of 6.6 million jobs is a very inconvenient truth for a lot of people who believe that opportunity is dead so what happens is when we try and talk about the existence much this much opportunity, half the country will say, well, it's because the jobs are lousy or employers are greedy and don't pay enough, and the other half will say, ah, it's because people are fujsly lazy and don't want to work both miss the point. the opportunities are real, and they're there. i've done my best to reward them every year >> there's been a real societial

push for everybody to get a college degree hasn't there i'm old, and i was in high school, and i went to school in new hampshire. >> you're old. >> big libertarian state the guidance counsellors would tell some kids, don't go to college. go to community college. go to a trade school i doubt that happens i don't know if -- it probably sti happens new hampshire, but not in a lot of the areas of the country. those jobs have been minimized, and they shouldn't be. they're so crucial, and satisfying >> you're talking about the part of our labor force that keeps the lights on, keeps the plumbing working, you know, we're talking about jobs -- not classic manufacturing jobs, although they fall you should that rube richt. you really are talking about jobs that can't be outsourced. the opportunities that my foundation looks for goes beyond guidance counsellors and beyond parents and beyond peer pressure we're just trying to reward work ethic. i've always believed and still believe that it's still very much for sale, and if you find a

kid who is willing to show up early, stay late, and actually learn a skill that's in demand, then that opportunity simply -- there's never been a better time to be an ambitious, well-trained plumber. you'll see for yourself. if you need one, call one. see how long it takes to get one. >> they're hard to get, and they're expensive. they pay well. >> sure. >> mike, where should that public relations campaign for the good job at 2018, where sudden that originate from should it be the private sector? the government i don't want to politicize this either, but somebody has to start saying, hey, you know what, take a look at these jobs and, guys, we might give you the training for it as well. >> anybody who has skin in the game obviously elected officials have a role to play in this so does the private sector so do parents. so do guidance counsellors there was a campaign i bet you remember this. remember the indian on the side of the road? right? that was a very, very effective -- maybe the most effective p.r. campaign of all

time it came out of keep america beautiful. long before green was a thing. our country had a horrible littering problem. like, we just left our stuff behind everywhere. we needed a concerted effort to redefine our collective relationship wit the country now needs a concerted erlt to redefine its collect tich relationship with the definition of a good job and so there's not a clib answer it has to happen on a lot of different fronts but that campaign, keep america beautiful, 1953, that was the result of a consortium that was federal money, but coca-cola was involved big businesses were involved and concerned individuals and together they actually moved the needle the problem is it really took about 12 to 15 years before anything demonstrably happened turning a tanker around. >> exactfully. >> you talk about perception so the short answer is everybody all the time for the next

decade >> i'm glad we solved that. >> no problem. happy to help. >> mike rowe with the best pipes in the business. >> oh, come on. >> once again from san francisco. >> my pleasure. >> thank you so much as a fan, i love it. oil today as opec releases production numbers who cut back who pumped more? we'll talk all about that. saudi arabia really backing elon musk's bid to take tesla private? we'll discuss that when "power lunch" comes right back. duncan just protected his family with a $500,000 life insurance policy. how much do you think it cost him?

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oil sliding on worries about what they will have on the turkey markets joining us is helema kroft great to have you with us. we also have a stronger dollar playing a role here. where do you see the move in oil going from here? >> i think we really have to see how this contagion fear story plays out. certainly emerging markets are going to be the bulk of demand growth in 2019 so any concern that this could spread to other key oil producing emerging market countries, i think that will be a big head wind for oil along with a strong dollar offsetting that are how many iranian barrels come off the market right now all eyes are on

demand. >> at the same time turkey does have kind of a wild card to play and could turkey use that as leverage >> i think this is a great question because turkey is a very, very important energy transit country and the united states for years had been looking to turkey to help play a big role in diversifying europe away from russian energy supplies so when erdogan comes out and essentially says we will have to look to new friends signaling russia, i think that puts a lot into play about the role turkey will play in terms of europe and any diversification as allied with the united states on this issue. >> how does that play out if turkey is closer to russia >> what i think is really interesting is we just had a meeting with the five big caspian producers over the weekend. they came up with an agreement on how to manage the resource. if you have russia in front of the driver's seat, i do think the whole question about, you know, russia playing a driver's seat in global energy security

becomes paramount. the whole goal of turkey was to use them to diversify. it looks like russia now is really strengthening their grip on the key producer in the caspian region. >> i never thought i would ask you about tesla, helema. what did you make about elon musk's tweet and saudi's willingness to invest in tesla >> what we have not heard from is the public investment fund in saudi arabia we know muhammad bin salama loves is everything tech we saw the uber investment it's about a broad based strategy to diversify saudi arabia from oil through tech investments. one of the key questions going forward for saudi arabia, they still have a very big demand to generate jobs in saudi arabia. will this fulfill those domestic

priorities they were looking to the aramco ipo to provide the kind of capital into these investments now aramco is going to tap the debt market, buy out the public investment stake and that's going to potentially be the funding stream, but with the aramco ipo sort of stalled out, that has been raising questions about where the public investment firm will get capital. >> thanks for joining us appreciate it. >> thank you shares of twitter moving higher today after a noted short seller suddenly turns bullish on the stock. and the incredible story of an airline employee stealing a plane. this is unbelievable how did this happen? and could it happen again? those stories and much more coming up on the second hour

i'm michelle caruso-cabrera. turkey's currency crisis put markets on edge. one major emerging market just hiked rates to 45% i did not say 4.5% i said 45% yes. just how real are contagion fear when is it comes to turkey shares of twitter soaring as city citron turns bullish.

and a wake-up call for the airlines, airports and regulators a ground agent steals a plane, takes it for a joyride, pulls off some incredible stunts before crashing. how could this happen? are more security measures needed how worried should you be? "power lunch" starts right now and welcome to "power lunch. i'm melissa lee. stocks are lower across the board as you see here but well off of session lows. the dow was down 161 points. now down by about 80 s&p 500 down by 5.5. exxon mobil and jpmorgan leading the dow lower. meanwhile, lennar weighing on the s&p 500. crude is down more than 2% on rising inventories and fear about sapping demand from emerging markets because of what's going on in turkey. phil >> i'm bill griffeth bob miss san pisani at the newc

exchange we are well off the lows. >> s&p 2820 was the low for the day. that was about an hour ago we're six, seven points off of that low i think the reason is partly because tech is holding up and health care. and when you have two of the three biggest groups doing fairly okay on a day like today, that will help so there you see tech and health care up. consumer staples flat essentially. we have energy and materials are the real problem area for the market the reason that's not hurting more is they're very small parts of the market. material's only 2% of the s&p 500. oil services i've been highlighting all day two-month low in oil oil services group down 3, 4, 5% most of the steel names are down big aluminum names are down. if you happen to be an aluminum company in china like aluminum corporation of china, you're down more than that. there's freeport down fractionally i want to mention the weakness

in the home builders again because a lot of them are essentially sitting near 52-week lows melissa highlighted lennar sales are off. inventories have been very low the prices have been very high all starting to come together. xhb here you can buy of course the home builders in a single exchange rated fund xhb. it is essentially sitting near the lowest levels that we have seen since last september. guys, back to you. >> thanks for that rundown, bob. let's talk more about the financial problems in turkey could they become a potential economic problem for the united states steve liesman joins us now for the contagion risk as we call it. >> well, it's not for the united states but it is for argentina which announced in the last couple hours it would raise its benchmark to 45% just like michelle, i'm going to underline this, not 4.5 to 45% from 40% that's the latest development in what's becoming a currency route for some developing nations. take a look at this one chart

here you can see it's really the turkish lira that's taken the brunt of it. also, 10% strength beening of the dollar against the argentinian peso and the ruble off 10% and other countries have been hit by this u.s. stocks buffeted by currency concerns there are conflicting opinions whether this is a contagion or limited to a handful of countries. action economics says while the fear contagion will leave trading nervous this week, the problems appear more endemic to turkey than systemic to the global financial phere main sparks are the federal reserve raising interest rates for countries like turkey with large amounts of denominating debt the second is the trump tariffs and that raises questions about the ability to repay the debts

two factors, stronger u.s. growth and better capitalized u.s. banks doesn't mean it won't happen but it means there is a buffer before it happens. >> the fed tomorrow, do you think what they plan to do in terms of interest rates would be there in turkey? we spoke to steven roach and he said the unwinding of qe, that could be a problem that's among one of the major things he's watching. >> i think that's a good question i hadn't considered it in those terms. i think they would probably go ahead with september if and when they need to, but i don't have to answer your theoretical question. >> that's fine that's true. that's true. >> but it's still going on in september. >> right i think they would still hike and signal a wait and see attitude where they might include something about monitoring international financial developments and i'm thinking that powell is probably on the phone with some of his counterparts in some of these

other countries also talking to the imf. argentina is under an imf program. they applauded some of the moves that argentina took today. >> don't move, steve let's get more insight from ariel cohn good to have you here, ariel. >> pleasure. >> what do you make of the situation with turkey? let me ask you this, what do you think of president trump weighing in on the negative in the middle of a currency crisis in turkey? does he have a right to do that? >> i am really, and this is very unusual for myself, i really have two opinions here on the one hand, erdogan, the president of turkey, had inflicted a self-inflicting wound, shot himself in the foot by conducting an irresponsible internal domestic policy and at the same time provoking the united states by refusing to release a preacher, an american preacher that the turks have

arrested and are pinning with responsibility somehow to the failed coup of 2015. at the same time, i think that mr. trump is not interested or should not be interested in the rise of global financial instability because that can trigger a downturn worldwide and in the american economy as well so maybe a calming statement including in the trade war with china would be in order right now just not to create some kind of a chain reaction. >> ariel. >> yes. >> you have to acknowledge, jim paulsen said this in the last hour, that it is the policy of the administration to create instability and economic pain in many countries, and my attitude towards this is you don't go looking for global trouble because global trouble is going to find you. now i don't -- >> absolutely. >> -- see it as necessarily

being -- i like this idea that it's endemic to turkey and not systemic to the globe just yet, but i just think the attitude of the administration is one that you certainly know as an investor they're not there to have your back to stabilize things. >> well, they're saying that -- what the administration is saying is they're there to promote american rust belt industry, heavy industries and compete with countries like china, turkey and other sort of 20th century heavy industry producers. how wise this policy is remains to be seen it probably plays very well into where we are in the election season, but i will say one thing, if china really goes bust. >> right >> if the chinese growth stalls, it will be not in american interest if the world -- >> i started this conversation about trump so here we are

we are talking about trump and that is my fault, however, i would say to you and after listening to all of this, whose problems are turkey's right now? who created them turkey did, right? >> absolutely. >> whose problems are china's right now, who created them? china did. >> absolutely. one thing i wanted to mention was in preparation for this broadcast i looked up the rates of trade between turkey and the eu if turkey really starts to impose sanctions on imports from the united states or imports from the eu retaliates to what's being done, the eu global output is going down by 0.1%, something like that. so this is really inconsequential in the large scheme of things, but strategically, geo politically if we're losing turkey and we were in the process of losing turkey now for years, if we're losing turkey to russia, to

china, this is a huge, huge downfall -- would be a downfall of the trump administration. >> right but a choice i would underline that erdogan has made himself. ariel cohen, thanks from the american council. >> i want to make one quick follow-up which is that no dispute in a lot of cases with the ends of the administration the fact is the u.s. -- united states has always taken it a little bit on the chin and paid a price for global stability and i think the administration has come along and said, we're not willing to pay that price anymore. >> right. >> and i think what we'll find out now is we'll -- were we taking too high a price or getting too good of a deal and taking it on the chin and it would be subject to competition or fair competition in return for global stability as the u.s. as the sort of policemen of the world. >> there are a lot of people who are unhappy with the state of the united states right now.

behind closed doors i think a lot of them would say to you, yes, we took it on the chin to have stability in the rest of the world and we exchanged for instability in our country >> maybe resulted in instability in this country. >> right. >> then you get it back and you say, well, wait a second, turkey has nuclear weapons. it's a key ally of the united states on the front lines with russia and in nato what are we willing to accept from turkey in return for its alliance >> huge questions. >> yeah. >> we're not going to solve on the table. >> we can try. we have two hours. >> by the way, we were asked to solve it but we have failed. thank you, steve always good to see you coming up, should you tune out the noise and stay the course or make changes to your portfolio amid these geopolitical tensions and the market crisis in turkey that we've been talking about we'll talk about that some more. plus, monsanto ordered to pay $289 million to a man who claimed one of their products

caused his cancer. shares of its parent company bayer plunging as a result and this is just the first of thousands more lawsuits just like it. we have the latest on that story coming up. and how safe are america's airports and america's planes? the deadly incident in seattle raising very serious security questions over the weekend we'll speak to an industry sir indeon that when "power lunch" comes back in two minutes. ♪ that's confident. but it's not kayak confident. kayak searches hundreds of travel and airline sites to find the best flight for me. so i'm more than confident. how's your family? kayak. search one and done.

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welcome back to "power lunch. what should investors do with their money? should people continue to invest over seas or is investor money safer here in the u.s. joining us to discuss, grant buckman, senior equity investor at ubs and john solstice is at oppenheimer management what do you say? it's early in this crisis. if it continues, do you start to rethink investing in the emerging markets, for example? >> from our perspective i think when we look at what's going on in turkey, it is an issue if it expands beyond the borders of turkey as it stands today, it's isolated to that country which makes up a very small percentage of the msci so it's less than 1% of the allocation overall. in our minds -- >> tell that to investors who are selling the other emerging

markets, rights? >> sure. you see it basically impacting sentiment. from our perspective you have to make the distinction between the impact on fundamentals, which we have not just seen, or the sentiment. it can weigh on the sentiment for the near term but we are of the mind that it does not derail what we think is a multi-year recovery for market equities and the countries and companies you can invest in. >> what do you think, john do you agree to this point the crisis has royaled the currency markets equity markets, yes, they've seen a blip but we're still near all-time highs in the u.s. >> bill, we've got to say that we are not looking for contagion or for extended problems to other markets with turkey. we think it's basically turkey's problem. it was created at home, cooked in their own kitchen, so to speak, no pun intended, that's just an accident, sorry.

my point is that we do expect that this will likely be resolved some kind of a rescue plan for turkey, but we think very much like with greece, it will have very little effect on the european monetary union, on neighboring nations. it is a concern relating to stability, geo politically while this gets worked out, but for the markets we do not believe this is something that it will be a risk that will overhang even for a long term. >> i get the argument that contagion would be very limited, they're the contagion mechanisms per se but at the same time a strengthening of the u.s. dollar, at what point does that jeopardize your view of the u.s. equity markets >> so i think there's two things here when we're looking at emerging markets certainly there's some sensitivity to the u.s.d when you look at the u.s. markets here, obviously when you look at multi-nationals, that could have a potential dampening effect on earnings growth. looking at 25% plus earnings growth in the first two

quarters been phenomenal. the market while it's up this year doesn't always care about the strong earnings recovery because it's concerned about the macro front which we think ultimately subsides. >> here's the thing, john. the central banks of the world, most of them have only really started to think maybe they might start to tighten, right? i mean, we started here in the united states but barely so the degree that you believe that a lot of what's happening in the emerging markets is because that unwind has started, once it gets more aggressive, you don't get worried that this grand experiment that argentina and turkey are the whisperers that tell us that the grand experiment as it under winds is going to be really kind of fraught? >> michelle, we look at this what we see is the strength of the dollar which began oh, midway or towards the end of the first quarter when it really took off, the dollar is only up

2 1/2% this year, up about 6% from a low around march as i recall, that's on the -- against major indid i sees there's some individual countries, of course, that's vastly different than emerging markets. we think the strength of the dollar is primarily tied to this trade skirmish and concerns about how it reflects not only on the dollar but foreign economies that could come under pressure if the u.s. is not the buyer of a broad range of products for them. so we can't help but think that all we need to see is some kind of improvement and reduction of the trade disputes that are occurring. some kind of resolution and we think you're going to begin to see the dollar weaken again. we don't really -- and the central banks, we have never in 35 years in these -- in this business seen central banks around the world act with such sensitivity. considering the strengths as well as the vulnerabilities of the economy.

>> the macro it's in a much healthier shape the company fundamentals are quite strong >> all right we'll get right past it. move along grant buckman and don. >> thank you still ahead, big retail on deck with earnings. home depot's the first to report tomorrow morning stock's up 27% the past year one of the better dow performers you can find home depot ahead of the report trading nation is next you always pay your insurance on time.

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welcome back to "power lunch. i'm sara eisen and it's time for trading nation home depot lower ahead of the earnings tomorrow. just one of several retail names reporting this week. the stock failing to build on momentum that we saw in 2018 after a barn burner year last year stacy vilberg joins us from

susquehanna. home depot has been such a big part of the consumer recovery that we've seen. what's going on? is it concerns about the housing market >> you know, it's interesting in terms of market sentiment perspective. if we look at the options, they're pricing in a 4% move around 4% when we talk about the tech companies, the moves are considerably greater than 4% when it's more than home depot moves, that's higher than we've seen over the last eight quarters the market certainly sees potential for movement heading into this report in terms of a sentiment, i would say it's leaning more bullish than bearish for investors who are looking for protection, unfortunately given the vol levels it is not cheap on a relative basis. >> ari, given the movement recently, is the up trend intact for the stock which is a big winner >> it is it's on the one hand acknowledging that there has been some moderation in the stock's price movement of late we don't have a very strong call

because of that into the print it looks like it could continue to drift sideways but being long term momentum trend followers, we side with the stock's long-term up trend we think it continues to move higher over the long term. note the stock's still above its rising 200 day moving average. as long as that's the case, hd's going to maintain its spot on our s&p 500 buy list we think the stock is going to get new all-time highs. >> ari wald, thank you for more trading nation you can always head to our website or follow us on twitte twitter @tradingnation coming up, it is the landmark verdict that could be given german drug maker bayer buyer's remorse. monsanto hit with a massive verdict in a cancer trial. may not be the last. we'll have the latest for you in "power lunch" coming up next and now the latest from

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hi, everybody. i'm sue herera here's your cnbc news update at this hour. there's been an attack by a bomber in kabul killing one police officer and injuring another. over the last few days security forces have tried to stop an assault on the city of gazini where at least 100 afghan fighters and 20 civilians have been killed. here at home police believe the pilot of a small plane intentionally crashed into his own house south of salt lake city this morning. dwayne ude was killed in that crash. his wife and a juvenile inside the home were able to escape >> tokyo is testing ways to cool that city for the 2020 summer games including sprinkling water on the streets the road to the city will be used for the marathon and the

speed walking courses. tests showed a difference of about 7 degrees between wet and dry areas. and spotify unveiled a feature in australia that lets free users skip audio and video ads as many times as they'd like they told ad age that this will help the company better target users. the goal is to launch the feature worldwide. you're up to date. that's the news update at this hour michelle, back to you. >> thank you very much, sue. oil market closing for the day. let's get to jackie deangeles. >> good afternoon, michelle. oil prices under pressure today but pairing the gains at the close. seeing a similar situation as he can witt its concerns over trade wars and global growth, those are the main themes. opec's monthly report, it took its demand forecast down slightly in 2019 the ida has suggested in the last couple of months that there could be softness on the demand front. these factors certainly weighing on oil add to that that gen scape came out suggesting that inventories

are building and cushioning. you have the 3% drop at the session low for oil. a couple of things to think about, the inventories could be part of a seasonal build remember, it's been rainy. that could have a little bit more of a severe impact on summer demand. also, with the iran risk in the market, you could see a push and pull between oil prices that keep them range bound. >> jackie deangelis, thank you very much. twitter shares are up almost 3% andrew left of citron research turning bullish citing a $32 price target twitter is more relevant now and in the media dollars follow relevancy. is he right? let's bring in ed lee from "the new york times" and a cnbc contributor and brian wiezer at pivotal research group brian, i'll start off with you in some respects does andrew left have a point because even though we saw declining users in

twitter's latest quarter we saw profits go higher. maybe dollars are in fact following relevancy? >> i don't agree with that i mean, if dollars followed relevancy "the new york times" and washington post would probably have all of the money these days no, i think that the reality is that twitter is now, for lack of a better word, normal business they're growing fine they expunged a lot of the bright, shiny object money that had flooded in to twitter in 2014 and '15 so now they're just growing normally unfortunately, the market has overreacted on the up side much the same way they had overreacted on the down side a couple of years ago. >> ed, do you agree that twitter is a normal business i mean, what was interesting in andrew left's report or citron's report is they specifically cited elon musk, which is the other big story this week, of course this past week, using twitter as his platform to announce that he is going private. >> you're going to defend your new employer now, too, right >> yeah, exactly >> look, twitter is incredibly

relevant it's moved markets many times not just with elon musk. i'm with brian it's growing normally. it actually lost monthly active users last quarter it says to expect more losses this current quarter as well at the same time profits are up so actually booked its biggest profit last quarter. it looks like, smells like a value stock more than a grooet one even though it's trading at 100 times earnings compare that to facebook which is trading more like 30 times earnings facebook has sort of more muscle to kind of bring in more ad dollars. they've got video plays as well. so twitter is absolutely relevant, of course. it's more of a longer term play here in my book. they're cleaning out the bots. they're getting rid of the bad followers which is good in the long term. in the short term it's not a fast growing -- it's not a fastly growing thing either. >> i was thinking about this over the weekend i was reading a story about something the turkish finance minister said. the quote they gave was based on

a tweet of his and i thought, you know, twitter has become such a -- an invaluable communications tool. you almost think it has to become a utility now rather than just a for profit business f. twitter goes under, somebody else will step up and do the same thing, don't you think? >> you're absolutely right it's been incredibly valuable to us reporters people are putting out statements on twitter. it's relatively easy to pull from those whether twitter exists or not, it will exist. again, it has a much more hard core user base it's not a widespread thing the way facebook is. so i think that's the issue. is it really just ultimately a big niche play versus a mass play. >> brian, we had ann winblad on, famed vc investor. she said back then twitter's not a company, it's a product. i always thought this should be part of something else it just isn't stand alone. do you think it ever gets taken

over >> i think, you know, at the right price it could be. you know, go back a couple of years ago when they were actively supposedly in serious conversations to sell possibly to disney, possibly to sales force. i actually could see it as a -- if you think of twitter as a broadcast medium, which it is, it is much more that than it is a social network, and you think about, again, take the disney example or take a fox or take any kind of large news entity that has news gathering capabilities and you think about what twitter means for news and for sports, yeah, i could imagine a situation where someone would say if i am disney, buy it and don't worry about the fact that nbc and others wouldn't want to use it as much. that might be fine that would work at a certain price but not where it's trading now. and so you really have to just think of it as a stand-alone business it has become more of a business, a mature one

zuckerberg called it the clown card that fell into a gold mine. well, the clown card has gotten a little bit more sophisticated. the gold mine maybe wasn't quite so robust but it's a decent vehicle and a decent sieve of metal. >> we'll leave it there, guys. thanks ed lee and brian wieser with some very colorful thoughts there. many of you have heard a california jury ordered monsanto to pay $289 million in damages to a man who claims roundup, one of the most widely used herbicides in the world, caused his terminal cancer. shares of bayer who recently acquired monsanto is sharply lower. aditi roy has the story. >> reporter: hi there, bill. shares of bayer which acquired monsanto are down nearly 10.5% this morning after a landmark verdict. a california jury ordered monsanto to pay $289 million in

damages to dewayne lee johnson he's a northern california man who says his terminal cancer was caused by spraying roundup while working as a school grounds keeper what's notable about this case is that it is the first among thousands of other similar cases across the country involving the herbicide to go to trial none of these are class action suits. they're all individual suits roundup is one of the most popular weed killers on store shelves today. its active ingredient glycofate came under scrutiny in 2015 when an agency said the chemical was probably carcinogenic. monsanto vigorously disagrees saying more than 800 scientific studies and reviews and conclusions by the u.s.epa, u.s. institutes of health and regulatory authorities support glyphosate does not cause cancer the next case involving roundup

is scheduled to go on trial in the fall in st. louis. back to you guys. >> these cases are all over the country. it's not like someone jury shopped. >> no. there were 5,000 cases out there on this. >> there's 5,000 exactly, more than 5,000 plaintiffs and none of them are class actions, they're individuals or groups of individuals. there's also hundreds of them clustered into a federal case which just in the last couple months got the green light to go to trial there's no date scheduled for that, but this is certainly not the last time we're going to hear about this. >> it's interesting to see the stock respond this much. i think back to johnson & johnson, all of their cases involving baby powder that involved talc and the cases going against johnson & johnson by the people who claim that talc gave them cancer. those cases were reversed in many cases there i don't know whether the market doesn't think this case is going to be reversed or what, but it's interesting to see the impact these things can have on the corporate parent here.

>> but the number -- >> well, there's thousands of cases on the j&j talcum, too. >> j&j has done that. >> thanks, aditi >> you bet >> see you later. president trump in -- at fort drum in new york this hour. he's signing the john mccain national defense authorization act which increases military funding. these are pictures of a military exercise underway at this hour we're monitoring and we will bring you any headlines that cross as the president gets ready to sign that document. >> taking a photo op there with the soldiers. coming up the deadly plain heist in seattle raising rncurity conce how worried should you be? that's next. so no matter what you trade, or where you trade, you'll only pay $4.95. fidelity. open an account today. today's senior living communities have never been better,

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need a change of scenery? the kayak price forecast tool tells you whether to wait or book your flight now. so you can be confident you're getting the best price. giddyup! kayak. search one and done. welcome back 29-year-old airline worker stole a plane in tacoma, washington. listen to what happened when he was in contact with air control. >> just flying around and he just needs some help controlling his aircraft. >> i don't need that much help i've played some video games before >> well, his answers may have been humorous.

the situation quickly turned tragic he flew the plane for roughly an hour before crashing into an island in puget sound. he was killed in the crash joining us is bill baldonza, president of spirit airlines great to have you with us. >> good to be with you. >> we've learned a little bit more on what has gone on in the situation. i'm curious, from your standpoint was there a security or is there a security short fall, a hole that needs to be plugged? >> well, it's hard to say that there isn't a hole that needs to be plugged given what just happened but, you know, the toughest thing in any industry, clearly the airlines is colloquially the inside job, right? this is a worker who clearly had access to the ramp, had access to the airplane as part of his job. it's not like somebody snuck into the airport or somebody snuck on to an airplane there. he was supposed to be where he was he just shouldn't have done what he did. that's just a much harder thing to control i'm not saying that something

shouldn't be done. i think something needs to be, but workers need to be around airplanes and workers need to fuel airplanes, cater airplanes, service airplanes and things like that. >> sure. >> this guy was in that kind of role how do you stop someone from just hopping in the dock pit and if th -- cockpit and -- >> something i didn't think about before, how does one start an airplane? there aren't any keys. there are no precautions of somebody going into an airplane, if they know how to start it, they can starts it. >> are there new technologies that the industry could employ to prevent others from starting an airplane without an auth authorizati authorization? >> that's the only way to think about it the guy had access to the plane legally. if he couldn't start it that would make a big difference. technology through the use of codes would make a difference. that would require a lot of changes to cockpits and things like that. the other thing is this guy clearly sort of knew what to do even though he wasn't a pilot.

he had spent enough time on his own, you know, computers, tablets, whatever, plane simulators and he knew how to get the plane started and how to maneuver and take off even though he had never had any flying lessons before. so, you know, there's such reality in the games that people play now that it makes something like this, you know, a real security risk. but, you know, when all is said and done, there is a bit of fate that comes into having people in sensitive jobs somebody to stop us from going off the rails. >> and it still might happen >> tease me. >> i understand. >> tsa >> the egyptian air pilot that took his plane to malaysia -- >> he had a train. he had to go through security procedures

he jumped through the hoops to be where he needs to be and seemingly up until that day did his job apparently well enough that he didn't get fired, right? and so it is the sort of inside job issue. it's tough to figure out the right way to do it i think going back to what michelle said and not letting the plane be able to start without some sort of more security might be the right way to think about how to prevent this going forward. >> melissa said that actually. this is michelle. >> i'm sorry >> i listened to this whole conversation i'm not sure anything could be done the guy was a worker you're going to add a whole bunch of layers of security. >> that's the fate part. >> he was a weirdo. >> i don't think this is less likely it could have happened had it been parked at a jet bridge it was on the ramp and that made it a little easier for him to do what he did. if it was on jet bridge and access was controlled by the gate or more limited and actually backing it out in a much more congested area, he probably would have had a much

harder time. i think the fact that this plane was parked on the ramp. >> that's probably why he did it when he did it at the place he did it, right? >> yeah, that's right. >> i don't know that there's much to be done on this. >> i sort of agree but, i mean, the big -- i mean, you know, when you first read about this you had to think that, oh, my gosh, was this a terrorist? >> yes. >> was this an act of terrorism? i think that was probably our first thoughts collectively as a nation. >> i actually feel better now listening to you talk about, look, he was an employee he had to go through all of these things, right? i was worried that there was too -- access to airplanes was too easy it sounds like it's quite hard. >> yeah, there's a lot you have to jump through. again, you can test people you can train them you can't always know what's in their head and in their heart though, right? >> nope. >> that's for all employees everywhere ben, thanks. >> thank you very much coming up, papa john's getting an upgrade the company giving its

franchisees a life line. we'll have that story for you next you always pay your insurance on time.

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welcome back to "power lunch. marcus looks back and provides new commentary on an episode

where the deal of an owner of a pop concern business gets explosive. >> you lied to me. >> how was i supposed to know, you did it behind my back. how was i supposed to trust you? i was the one who put in hundreds of thousands of dollars and you're asking me to trust you. >> i sligabsolutely do. >> you did not display it. i was upset. >> i also feel if you can't trust her in that moment with you and the website then how can you trust the other things she's saying is correct. i'm not saying it's lying. >> it puts doubt in me it went from i don't know where the money is to now i feel you're trying to cheat me. all right, let's get to don

chou that ticker, itb, probably one of the most closely watched for investors. now falling about 2.5% or so just so today. you've got lennar one of the worst in the s&p and tol key group all down and redfin, 42% on friday. the company's worst day of trading since going public back in july 2017 remember the ceo warned on the earnings call about waning home buyer demand across certain parts of the u.s. especially in some of the company's largest markets. perhaps a signed bill of softening conditions in the housing market meantime shares of papa john's rallying by 5% today after an upgrade long bow says the negative investors sentiment is now fully

baked into the share price our word, not his. this comes as papa john's throws its franchisees a buffer >> it offered a program in the form of royaltiy reductions, food service pricing and online fees through 2018. this comes after the ceo admitted to using a racial slur in a conference collin may and the negative publicly has impacted the board as store sales fell in july remarketing and reimaging efforts consistent with the company's branding the president of the papa john's franchise association said in a statement we believe it is time for the founder to move on steve richy the ceo is pursuing the right initiative to re

reinvigorate growth. pointing to a statement, saying i have little doubt the company's performance will continue to deteriorate under the current ceo and board of directors. the 10.5% sales decline in july they actually said it wasn't as bad as they were expecting >> so they were expecting worse. royaltiy deductions, in other words if i own a franchise it's going to cut -- >> don't forget part of this reimaging and rebranding is taking schnatter out of this equation he's papa john's so they're moving in a new direction. >> so new ads are going to come

out? >> exactly they said in their guidance between $30 and $50 million for this entire situation that's coming >> did the franchisees own their own real estate or rent their own real estate or did the company play in role in that i'm wondering how sticky this could be and at some point we could see closures >> a source close to the company did tell me last week that the general sentiment by franchisees is they're moving in the right direction. check please is next >> oh, boy with the new chase ink business unlimited card i get unlimited 1.5% cash back. it's so simple, i don't even have to think about it. so i think about mouthfeel. i don't think about the ink card. i think about nitrogen ice cream in supermarkets all over the world. i think about the details. fine, i obsess over the details. think about every part of your business except the one part that works without a thought your ink card.

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what is going in west virginia the state legislator today voting to impeach one of their supreme court justices and by the way they're considering impeaching all the justices on the supreme court. but in this particular case they impeached this one justice not for fraud or anything like that, for spending $363,000 on his office renovations >> and there's millions more than that, right, for the whole -- that's why it's concerning the whole -- >> the state supreme court has their own budget to do this, they can spend whatever they want >> but who set the budget? >> clearly $363,000 in west virginia goes a little further than it does in new york

i'd like to see that office. by the way, are you going to next >> that is quite the tease >> it's very big >> but i've been thinking about that segment we had about the stolen plane, and he could just go in start the plane on his own and why isn't there some sort of technology to prevent random people from starting planes. so many different things if an apple iphone can have that sort of technology why can't an airplane have the same technology >> i agree >> that's my question. >> michelle, happy anniversary it's time for "the closing bell." >> 20 years, are you going to tell that story quickly when i got that call from the boss? >> oh, i'm interviewing at cnbc

20 years ago and i said -- >> i walk into the office and there's this young lady who says my grandfather loves you >> and i'm sitting here with bill today and it is an honor. >> happy anniversary >> and thanks for watching power. "closing bell" starts now. it's time for the "closing bell" i'm wilfred frost. he'll explain coming up. i'm phil lebeau in chicago tesla's ceo elon musk revealing why he wrote, funding skurd in a tweet about taking the auto maker private. the details coming up. i'm leslie picker at cnbc headquarters shareoffs ratings giant nielsen soaring today as he's pushing the company to sell, and this could be one part of a big