>> cisco, when they reported the market's response was way overdone to the down side. i think they will probably guy higher, and that's the one i want to own on wednesday >> store capital it's a reet. i know josh brown is long, as i am >> we said stocks are near the highs of the day power lunch picks up that story. thank you for watching enjoy the rest of the day. "power" starts now >> it sure does. i'm michelle caruso cabrera. drip, drip, drip those are the details from elan musk teasing out new details on its call to take tesla private tesla's board taking a major step to check out his bold plan. we'll have the latest straight ahead. trade tariffs and china. we're going to speak to a harley davidson dealer about the impact of the trade war and also president trump's tweets why one expert says it may be time for america to walk away from the negotiating table with china. as the return of the ultimate power lunch yes, the iconic four seasons in new york set to reopen after two years of delays.

we'll take you inside for an exclusive tour power lunch starts right now investors seem to be focussing on earnings and the economy instead. the dow and s&p 500 up for the first time in five days. bitcoin falling below $6,000 for the second time this year. the total value of all crypto currencies have fallen more than $20 billion in just the past 24 hours. shares of mash taking a hit this hour more on that and what is taking the spot o stock down straight ahead. bill

>> markets unphased by all the glokt global flash points. >> we're at the highs of the day. industrials up about 100 points. the stronger consumer story is turning the attention away from turkey for now take a look at the russell 2,000. those domestically driven name outperforming today helped by a weaker dollar, but even retail a big topic today. upbeat earnings from tapestry. currently the best performing stock on the s&p 500 large retail names getting set to report. we have macy's tomorrow, nordstrom, wal-mart. all of those stocks higher today. now, speaking of the dollar, multi-nationals which have come under pressure over it is last two trading days because of the global concerns. those stocks are now off their lows 3m leegt looegd the charge there, and thanks to the surge that we're seeing in oil right now. wti right around $67 energy producers are enjoying gains. energy, the best performing sector right now if you look overseas, it's a

very different story. yes urk the lira rebounding today by around 6%, but traders say the turkish central bank needs to find a way to refinance its short-term debt. that expires next year according to the imf turkey's short-term debt just around $180 billion. turkey's foreign reserves at $80 billion. michelle, not a big cushion there. back to you. >> no. real shortfall, in fact. thanks turkey's currency rebounding a bit today, but the president making headlines once again calling for a boycott of american electronics v willem marx is live

>> he talked about the need to buy samsung above iphone or better yet, to go for a local cell phone brand here in turkey. ma in terms of the long-term impact, that's still very unevery unclear. we heard from sima, the lack of foreign policy reserves to pay off the short-term debt. we heard from the son-in-law, finance minister, saying they would support the lira quite how they're doing do that, remains anyone's guest mr. erdogan went off on the united states again and again today. he talked about how turkey was being victimized was the -- very much a victim of actions by the trump administration and tried to place turkey in the context of other countries like china, russia, and iran take a listen. >> translator: it is clear that the economic issue is global the united states has not only targeted our country, but it has economically targeted countries from china to russia from iran

to europe right next door, canada they've better than targeted >> michelle, a range of business owners i've been talking to here across it's an buhl telling me it's having a dramatic impact already on their businesses, and they expect things to only get worse. >> yeah. i can imagine. if that recovery doesn't occur soon in the currency, they're going to have a tough time paying their bills thank you. to the markets now, investors feeling billionish today. in fact, according to bank of america, merrill lynch, the domestic holdings are at the highest since january 15 domestic investors haven't been this bullish, but that optimism could be tempered. the congressional budget office expects u.s. economic growth will probably accelerate this year before slowing in 2019 to well below the trump administration's 3% target that according to cbo. so should investors keep riding this rally kind of a bull-bear debate going. michael scan later on, portfolio

manager with manulife asset management is overweight, while clint datrow, the chief investment officer at jewel financial is underweight u.s. equities right now gee, do i go with the bull or the bear we'll flip a coin here you have been underweight for a while. we by our own disciplined nature have taken those positions off and have not found places to redeploy i get especially concerned -- i'm not always a contrarian, but i am concerned when i see all of

the bullish statistics out there. especially today's report. it's easier for me to be bullish when people are pessimistic. >> okay. meelk, do you feel like you're in a crowded trade right now still being bullish this market? >> well, whether it's a crowded trade or not, i still feel like it's justified when you look at the earnings we reported this quarter, they're phenomenal, and you look at the data going forward i think there are three drivers that keep us very constructive on u.s. equity markets, and that is the earnings trajectory, which we should be able to maintain the buyback activity at about $1 trillion run rate, and then the economic data in the u.s. continues to be very strong. i think that being overweight u.s. equities continues to be justified relative to the rest of the world wrrn. >> you p, the footnote to the bank of america-merrill lynch investor survey is that they favor defenses over cyclicals, so even though fund managers right now are net long by the highest amounts since january 2015, there is sort of a defense to tilt that bank of america and merrill lynch is recommending

within your equity overweight. where are you? >> so that conclusion there sounds a little bift a reversion to the mean, right you have seen some of the sectors like consumer staples underperform to start the year here for us, you know, we look at it, and we're still very exposed to the cyclical sector. energy is an overweight for us financials is an overweight for us it really comes down to company specific stories when you look at our sector weights, we are overweight those cyclical sectors >> what if we suddenly had a trade deal with mexico something like that. would you become more bullish? i mean, i think it would lead the market to rally, but would that -- do you think that would be short-lived that rally, or would that kind of make you rethink your defensiveness >> you bring p an excellent point, and that is what will the market do in response to good news one of the reasons we're so pessimistic, cautious, is that we have seen negativity in the market after positive news look at the gdt worth. 4.1% the market sells off where, look at some of the earnings. caterpillar. this morning's home depot.

you're seeing these that are already baked in my curiosity -- i wouldn't run out and be a buyer, but it would be a change in character if that good news came out and we sustained a rally. does that make sense in a would get me to go, okay, it's not baked in. now i'm going to look for value, and in that particular instance, i actually would look outside of america to the beaten up emer emerging marketplace, because they have been pummelled if we saw trade agreements and, you know, so forth, those areas would rebound. >> very good food for thought >> there is an additional way to get exposure to that market as well >> very quickly. >> the market cap u.s. names where they're getting, you know, 30%, 40% of their revenues from overseas, and you are not saying that effects risk as a u.s. investor to get exposure to it >> all right michael, quinn, good to see you both thank you for your thoughts today. appreciate it. >> thank you let's turn to tesla. the company announce ag form's of a special company to evaluate elan musk's proposal to take tesla private. phil lebeau is live in miami with more on that story. leslie has the latest on

possible funding phil, we'll kick it off with you. >> let's be clear. this is not a formal proposal. i was on the flight today down to miami i get off the flight a guy stops me and says what do you think about the proposal to take tesla private there is no formal proposal. it's elan musk saying maybe we should be a private corporation at $420 a share. that's what he tweeted out last week here are the latest developments as you mentioned, the board of directors for tesla has formtd a special committee. that special committee is made up of three directors. brad buss, robin denhomo, and linda johnson rice there is no formal proposal yet. this is the committee, though, that will analyze when elan musk does come forward with a proposal in terms of the details that are being offered up, and potentially if the board decides is it going to explore this on its own separate from elan musk that's what the committee would be in charge of. speaking of mr. musk, he announced late yesterday that he is retained silver lake and goldman sachs as football advisors for himself not for tesla, but for himself

he is looking into this potential privatization for the company. yesterday he put out a blog post, and it all has that do about this july 31st meeting with the managing director with the saudi sovereign fund musk wrote i left the july 31st meeting with no question that a deal with the saudi sovereign fund could be closed because of that, he put out the tweet where he said funding secured. $420 a share you take a look at shares of tesla. guys, it really hasn't done a whole lot today. i think that we're entering a period if we're not already in it, where we're not going to see a whole lot of developments or a whole lot of new news. as much as people would love to see something happen really, really fast, i think we're in a period here now where they're going to say, okay, let's start seeing what kind of details come together both from the saudis as well as from other potential investors. >> all right phil, thanks phil lebeau in miami let's get to leslie picker with the latest on possible funding leslie zbloog melissa, so in a typical deal you would first hire

advisors, have them arrange a buyer and a price insure funding is secured and then announce it. in the case of tesla's take private news is dribbling out in the exact reverse. late last night we learned via tweet that musk had hired advisors to work on the proposal unique among the list, though, is silver lake, which is a private equity firm. the firm has about two decades of experience taking companies private and then public, but it's not a traditional deal advisor like you would see at one of the large investment banks like goldman sachs a source tells me that's not actually the role that they're serving right now. they're not really being compensated as one i'm also told that silver lake isn't currently in discussions to participate in tesla's take private right now. the firm does have a longstanding relationship with musk, though, going back to its investment in solar city, which now appears as a holding in its kraft work portfolio as tesla after the two musk companies merged now, silver lake also has experience helping with the management buy-out and working

with michael dell to help take his namesake company private in that deal silver lake was said to have taken a prominent role in negotiating with dell's board on behalf of the founder now, of course, tesla's take private differs from dell in that it won't really rely on debt you have to compel a lot of these individual investors to exchange their publicly traded shares for an illiquid one in a private tesla. >> this should have been done before tweeting. potentially. >> just slightly >> have we heard from goldman sac sachs, let's say, as to whether or not they have been contacted by elan musk >> all are declining to comment publicly for the record. i spoke to sources about the timing that's what the s.e.c. will be looking into these mandates, again, are kind of one of those things that you do at the beginning of the process. with regard to goldman, they've been a longstanding goldman client they took tesla public back in 2010 they've been on a lot of their convertible debt offerings their capital market has been

very active with tesla as a chie client, so with that they're on a retainer, but in terms of getting that mandate -- >> in temz of tweeting, this is separate they've got a banker to tesla, but not a banker to elan musk, and in this capacity he is elan musk, the individual the investor who would need a mandate from goldman sachs >> exactly exactly. >> okay. leslie, thanks >> you bet >> keeping it straight for us. >> i was just going to say, all the pieces on the chess board. very complicated so many people involved. coming up, today's mystery stock it's up more than on 13% mad money's jim cramer says the company has become an investable story. more on that straight ahead. plus, after two years of delays new york's most iconic power lunchroom. >> finally >> finally, the four seasons about to reopen. we've been waiting haven't we >> yes, we have. this is a look at the old restaurant, and now cnbc is getting the exclusive first look at the new restaurant. who else but robert frank is going to be there live with more hi, robert >> michelle, you've been

waiting. bill has been waiting. i've been waiting two years, and it's on this block it's almost hidden you could walk by it without even seeing, but behind this door is the new ultimate power lunch spot in new york city. the four seasons it's back. we're going to have the exclusive first tour when "power lunch" returns you always pay your insurance on time. tap one little bumper and up go your rates. what good is your insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $782 on home and auto insurance. call for a free quote today. liberty mutual insurance. ♪ liberty. liberty. liberty. liberty. ♪

this wi-fi is fast. i know! i know! i know! i know! when did brian move back in? brian's back? he doesn't get my room. he's only going to be here for like a week. like a month, tops. oh boy. wi-fi fast enough for the whole family is simple, easy, awesome. in many cultures, young men would stay with their families until their 40's. >> home depot and tapestry, used to be coach. both had good reports. tapestry of the mystery chart

that we teased up more than 13% right now courtney reagan is here with the details. they had a great report and home depot blew it away >> they both did, even though they're really different home improvement and handbags. like you said, both turning in pretty solid quarters. let's start with tapestry. that is the parent company of coach. kate spade and stewart whitesman. reporting better than expected earnings short of analyst expectations there. the coach brand, the strongest comp sales of the group. albeit, short of estimates, thanks to north american strength kate spade comp sales fell, but much less than anticipated some sales leapt from nostalgia after the death of namesake founder kate spade, even though she hadn't been involved with the brand since 2006 home depot beat estimates across the board with its highest sales in history also upping its first-year guidance handily beating estimates. u.s. comps even stronger the best in nine quarters. thanks in part to recovering

seasonal sales that were lost in the first quarter from bad weather. things like gardening. i spoke to the ceo on the phone, and she says while only 4% of u.s. homes are turning over that tight fly, affordability is still good on a relative historical basis the 96% that are staying in their homes makes for a really good market for renovating great for home depot interior paint had its best half in five years. that's a good example of people saying that's one thing you can do as an easy refresh, paint the inside >> greige. >> kitchens, bathrooms that is a really big color >> i'm aware i'm aware. been there, done that. >> thanks. >> you got it. >> joining us now to dig deeper on home depot is joe feldman, senior managing director at kelsey advisory group. great to have you with us. >> thanks for having me. >> why the stock down in your opinion? >> you know, i think there was some concern about their forecast for the second half of the year sort of where we are in the housing cycle. if you look at the second half of the year, same store sales are likely to decelerate on a

headline basis when you add up this year's plus last year's same store sales and call it a two-year stack basis, it should be very steady at tarnd 12%, 13% we're very optimistic about the back half of the year, and then as you get into next year, the housing market is still in very good shape, and as courtney just mentioned, you need people that are living in their homes, which is 96% of the homeowners out there to continue to buy as long as they feel good about home values, they'll continue to spend. >> you know, this housing market has been characterized by very tight inventory, and that's sort of been the challenge here, joe. when you take a look at what is driving housing overall and you see that more people are staying maybe just because it's harder to find that new home, does that make you think that people are going to spend less or spend more in aggregate on their houses >> well, historically what we've seen is that people will tend to spend more when they spend more time at home, they'll come up with ideas or projects. maybe you paint the room maybe you do a new carpet. different things to do to

upgrade the feel of your living environment. we think that that will continue to be the case going forward, and people will continue to invest in their home >> go ahead. >> we had the wrong head signal. go ahead you first. >> 8% same-store sales it's pretty astounding i get that the stock is down, but what are they doing that i think it would be gang busters for any company, right you are talking about 12% averaged over time is that the strong economy is that home depot in particular >> i think it's a combination of the economy plus there was some pent-up demand from a late start to spring. that unwound a little bit. there's a little bit of inflation there on some kmod tir prices you have to factor that in the underlying trends in the business are very good people are spending on their homes. people are -- we've continued to see that now for several years, and we don't think that really is going to end. like i said, i do think that the sales growth rate will moderate. 8% is not to be expected every

time i think it's probably going to be more in the 4%, 5% over the next couple of years that's very good it's still -- it's a category that has some defensive positioning via amazon if you think about it, you know, a lot of what they sell, it's things that you want to go in the store. you touch and feel it. you might need it. something broke. you have to go in and show that -- >> it's hard to ship lumber, right? people are not going to buy lumber on-line >> that's difficult. >> especially with a drone >> thank you very much >> just don't make them that big. >> speaking of retail, do not miss an exclusive interview with tapestry ceo tonight on "mad money. that's at 6:00 p.m. eastern time tinder employees filing a lawsuit against the owners of match. match shares are down by 2%. what's behind the feud next eligible for medicare?

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thaurz of match -- >> hi, melissa early employees of tinder filed suit against iac match -- they say they are owed $2 billion in lost damages on the grounds at aic and match

when aic and match acquired tinder, they would be acquired to -- when employees could exercise stock options, but that all went away when iac -- tin tinder's valuation was set at $3 billion for the same valuation that had been -- despite revenues growing 600%. user groups also grew 50%. the lawsuit also claims then match ceo sexually harassed a tinder employee. tinder is one of 45 brands within match groups portfolio, including ok cupid, plenty of fish, and hinge. their competitors are bumble, coffee meets, bagel, and grinder. we haven't heard back from those groups back to you. >> it all comes down to when you can slide a company into a private. you can list it at any price you want right? >> slide that was a joke. >> i got it.

still ahead, our next guest says it's time to stop negotiating with china es joins us next to defend this this when "power lunch" comes back in two minutes. need a change of scenery? the kayak explore tool shows you the places you can fly on your budget. so you can be confident you're getting the most bang for your buck. alo-ha. kayak. search one and done. (vo) ovewhelming air fresheners can send you running. so try febreze one. with no aerosols and no heavy perfumes. so you can spray and stay. febreze one.

>> here's your cnbc news update this hour. the defense for former trump campaign paul manafort has rested its case manafort is accused of hiding millions of dollars in income he received advising ukrainian politicians president trump's campaign is taking legal action against former white house aide omerosa. it alleges newman in her new book and media tour breached a 2016 confidentiality agreement with the campaign.

the search continues for survivors in that horrific bridge collapse in genoa, italy, that occurred a bit earlier today. authorities say at least 20 people are dead, but that number has been fluctuating as rescuers continue to find people alive in the debris.

>> cloeger now plans to sell groceries on alibaba's platform in china that this partnership would be kroger's first move into overseas sales that's according to dow jones headlines. those are moving the shares. it's worth pointing out that we did learn earlier this year from some other reporting that kroger was looking to expand into international partnerships it looks like we've got one on the books now, guys. back to you. >> we'll wait for more details higher by 2.5% let's turn to trade. speaking of china, tariffs are starting to take a bite out of growth in china maybe. fixed asset investment such as spending on machinery and public works slowed to its lowest level in nearly two decades. retail sales rose 8.8% in july that sounds high, but considering what we've seen in the past from china, it's below expectations.

consensus is they've got to get a deal everybody's interest is to get a deal you don't believe that, right? why not? number one, i don't think a deal that we made today if committee would make one today, would last into the 2020 campaign where i think china is, again, going to be a big issue the one thing president trump and chuck schumer gray on is bashing china. we feel like trying to make deals with china for the last 15 or 20 years has not paid off for the united states, and we simply don't believe them when they promise us they'll be better in the future >> i was under the impression you were going to tell us that they were not going to change their ways that they've got a financial system and a political system that is built on certain things

such as using other people's intellectual property, state-owned enterprises that are going to be subsidized, and they don't have an interest in changing that. is that part of your thinking as well or no >> absolutely. i think china will be perfectly happy to make sproo fishl changes. i think the invasion system relies on copying and relies on theft. a big irchunk of their economy is with companies that are not state-owned enterprises wrrn the tech companies, for instance, and won't it come to a point where these tech companies which have made enormous

investments in areas like artificial intelligence will have their own intellectual property that they want to protect as well and so it will be in china's interest eventually when that time comes you also have the question of when china has enough technology and enough ip it wants to protect when we get to a point where china is a good partner, i would be happy to have the u.s. reengage why not wait until we see a better china before making a deal >> i realize that you are speaking sort of hypothetically with all that you are saying right here, but let me bring it down to a practical level where we sit today

all of the give and take that's gone on over the last several months at this point how do we reconcile that with what you are saying at this point. i don't mean to take us often track, but it's heavily influenced on where we're going on mexico. there's a lot of talk with the administration that a deal with mexico is close. >> right >> if that happens, that's what the president will be out there talking about. -- >> if we can make a deal, it can be used as a blueprint for europe, japan, and a lot of other partners i don't think the president wants to stand up, defend a deal with mechanics do and defend a deal with china at the same

time a deal with mexico pushes off a deal with china, and then we get that next tariff coming in september or october >> if let's say they follow your added vice we gi up negotiating a deal with china. what is the unwind look like what we just live with these tariffs and you assume, what, that we disengage? companies slowly but surely start to move their manufacturing and production out of there because of higher costs, et cetera, because of the tariffs? what does that look like if we just give up u.s.-china trade volume was one-third of what it is now. we're just going to go back slowly to a world where china is at the heart of most u.s. supply chains yes, companies will gradually move out of chooirina. i think they are now because of higher costs they'll move out of china because of access to the american market is no longer a

guarantee. the world goes back in time to before the u.s.-china relationship was so important in global trade >> okay. that would be fundamentally different than the way we've been thinking about everything for decades now. derek, good to have you on derek with aei >> let's get to meg terrell with the news alert meg. >> hey, michelle well, news alert in capital punishment for the first time nebraska has used the synthetic opioid fentanyl for lethal injection. it's the first time this has happened in the united states. it was part of a new previously untried four-drug cocktail used for lethal injection of course, drug companies have opposed use of their medicines for this purpose for a long time in this case the german drug maker frezenius had filed to block use of products. it said it had made that in this process. it did not make the fentanyl used here. we don't actually know who supplied that. there is some question as to

whether use of fentanyl will increase as often drug companies do oppose these. we are still digging into where that supply came from. fentanyl, of course, associated with the massive upsurge in deaths from opioid deaths in this country bill, back to you. >> meg, thank you. to the bond market now rick santelli tracking the action at the cme. whaelgts going on today, rick? >> hi, bill. well, you know, we're creeping up just a little bit we're close to unchanged, but the real issue with treasuries is they firmed up. we're only a base point and a half away from a 290 yield you can see that despite that, the short end is also kind of moving in the opposite direction. some of the safe harbor trades that were established at the end of last week because the year-to-date of tens minus twos, we're back down to 25 the steepening chapter didn't last very long if we look at i year-to-date of the following chart, this really just speaks volumes. our s&p 500 over the shanghai composite, and there's a lot of

issues and collateral damage and all these trade issues going on, but that chart really does show whose economy is growing and whose economy is on fumes so to speak, and final one week of the dollar index it continues to firm up. it's getting close very close to a 97 handle. trading at near 14-month highs melissa lee, back to you >> rick santelli, thank you. the center of deal making and networking of the financial class, and now it is back. robert frank is live at the new four seasons robert this is a tiny portion of the 10,000 bottles of wine that they're going to make available to the rich and famous we're going to tell you after the break why the four seasons will be the next capital of wining, ding, d alniande making. that's next on power lunch duncan just protected his family

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after two years of delays, skyrocketing budgets -- surprise, striurprise -- and a t of hungry agitated billionaires new york's most iconic power lunchroom, the four seasons restaurant, is about to reopen it doesn't -- it couldn't come any sooner robert frank is taking us for a tour i cannot wait to see this. robert here we are in the new four seasons. the moment many new york elite have been waiting for. the old four seasons was on 52nd street, and the new one is a $30 million shrine to power lunch. you got regulars like henry kissinger, martha stewart, nelson peltz, steve schwartzman. they are all going to be here, or many of them in the next couple of months, if they can get a table. i'm sure they will remember, the old four seasons was famous for its chain link curtains and to pay homage to that, they had these glass

balls, each of them hand painted and hand blown by an artist in the czech republic now, this is the bar when you walk in. it's kind of like the old pool room where it pays homage to that of the old four seasons the bar is done in gold leaf with a molded glass. there are about 50 seats in this bar, and i have no doubt this is going to be filled every night the most coveted tables, the ones that will be hardest to get, are in the dining room, and to get there you go up these stairs and through the tunnel or passageway this is going to be the new hall of fame in new york. now, what they've done with this tunnel, it's all bronze. a lot of the materials in this place are nicer than many of the homes i've covered, and they've recorded sounds of central park in various seasons, and they play them. right now as i'm walking down here, i'm hearing the crickets of central park. then when you walk down these stairs you have arrived of the dining room at the new four seasons. getting a table here and getting

the right table is going to be one of the toughest jobs in new york city. we're going to talk to the owners we're going to sit down and have some of their famous dish and talk about what it dock to get this new power lunch palace up and running tomorrow back to you. >> you know, that's bigger than i thought it was going to be because you were describing it to me the other day, and, i mean, i had seen some pictures that alex and julian had put out there during the construction process. that is pretty good sized footprint thaey've got there, isn't it it's not as big as the old place, but -- >> the old place had over 150 tables in the grill room this is about 100 or 110 it's smaller the space is smaller there's a champagne room upstairs there's private dining it is quite a bit smaller, and what's interesting is the best tables here will be the corner tables and a couple in the middle whereas, the old space they had that elevated area that was called siberia because if you were put up there, it meant you were not somebody.

>> i ate there a lot >> because there are so many people it's really going to be a major -- we have already had some people come today, some wealthy people, who invested with the restaurant. some people paid $250,000 to $1 million just really to get a table here we've had a couple of the rich and famous to try out their table and make sure that they like their table >> robert, can you go around the corner there is the lighting too tough for the camera man i want to see the rest of the am radio. >> she wants to pick her chair, her table. >> we kind of wanted to tease you with this. we're going to take a look at the whole dining room in a second we can show you -- the lighting, this is all the midcentury modern aesthetic he this brought a lot of that back from the old place. it's subdued and quiet these chairs are going to be filled with a lot of familiar faces starting tomorrow. >> it would be familiar for those who had a power lunch or two in the old place robert, what is the menu look

like there what is a tab look like? >> we'll show you the menu they brought in a chef diego garcia it's a very, as they put it, fish forward menu. there's a lot of great seafood, and the prices are as you would expect very high. they also have a pastry chef from the white house who has created some amazing chocolate cake that we're going to show you later. >> oh, that place. bill griffith is so interested in this story. i haven't seen him like this in ages >> i am getting a lump in my throat right now i have to say. this is -- i can't wait. >> did you notice he is on a first name basis with julian and -- >> yeah. well, we'll have to have you both here. they asked about all of you guys, and we're sorry you couldn't be here, but they'll join us in the next hour and we will talk to them about this incredible ride they've had over the last -- this is almost 60 years old since the original four seasons was founded you know, why is it that even though many restaurants in new

york have better food, great locations, why is it that this place, the four seasons, retains that magic with the very elite a lot of it has to do with alex and julie. we're going to talk to them about how they deal with these personalities. >> i cannot wait you know what, it looks fantastic. >> it does >> i didn't know what to expect, but that is just exquisite i can't wait see you next hour. >> see you in a bit. i'll bet this person ate there on occasion. president trump, he has been loutd and clear on his feelings about harley davidson's plans to ship some of its manufacturing overseas supporting a boycott of the company. are his tweets and trade war playg t inouat harley dealerships in we'll speak with one of the dealers next.

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you can learn how to switch to xfinity mobile, a new wireless network that saves you cash. and you can get 5 lines of talk and text included with your internet. and over here i'm having my birthday party. dj fluffernutter, hit it! ♪ dj fluffernutter simple. easy. awesome. ask how to get $300 back when you sign up for xfinity mobile, and purchase a new samsung phone. visit your local xfinity store today. a new episode of "the profit" airs tonight at 10:00 p.m. marcus takes a look back and provides commentary on the fan favorite episode where a popcorn maker starts to snap as the heat gets turned up >> i might not be able to read my balance sheet but i make $2 million a year don't tell me i'm stupid and don't know what i'm doing. >> he didn't say you were

stupid. >> oh, please. it's my money. >> i mean -- >> i -- excuse me? what did you start to say? >> you shook his hand. >> so what still my company. >> that little scene between her and her mom when i'm out the door i didn't know that happened until i watched the episode. she was one way when i was there and a different way and she was so flipping to her mother. i felt like charlotte was starting to panic a little bit. >> that's going to be a good one. take a look behind the curtain on a new episode of "the profit" 10:00 p.m. eastern and pacific only on cnbc. >> that is such a good show. >> president trump ramping up the rhetoric tweeting in support of a boycott of harley-davidson because of its plans to ship production manufacturing overseas cnbc obtained a memo from harley's corporate parent, he sent it to dealers and employees and in it he said and we quote

here, there continues to be misinformation circulated in conjunction with this issue. motorcycles for the u.s. market and rest of the world will continue to be made in the united states. how are the president's tweets and tariffs playing out at harley dealerships we're bringing in one, george is the president of two harley-davidson dealerships in the pittsburgh area, including one which has been in the family for more than 50 years george, thanks for joining us today. >> hi. >> i think getting lost in all of this is the fact that the bikes that are sold in the u.s. are made in the u.s. but in the meantime with all of the hubbub about the possibility of a boycott, have you seen backlash at your dealershi dealerships yet from customers >> we've seen nothing. zero we've seen nothing. >> nobody has come in and chastised or asked about it or anything like that >> not at all.

>> are you surprised >> no. harley-davidson, we do have an import dealership and harley-davidson is unlike any other brand. it's a family. >> what do you think about the president tweeting so much about harley-davidson's decision to manufacturers, some, albeit small number, of motorcycles overseas >> i get where president trump is coming from i get that he wants to see these tariffs reduced. i would like to see free trade myself i also see harley-davidson's point where they're going to face $9 million a month in tariffs. i can think of a lot more important things to do with $9 million than send it to some foreign sghoofts ygovernment. >> if i came in and said i don't want to buy a harley because of the president's tweets, something else, a comparable motorcycle is there a comparable motorcycle or does harley-davidson have in some respects that makes it immune to the call to the boycott. >> harley-davidson is

harley-davidson. one of the most recognized brands in the world. i spend most of my time in the harley-davidson dealerships because i like it the most the other brands, there is very little brand loyalty harley-davidson, people, they wear it on their arms, on their chest, on their clothing i followed a toyota tundra pick-up truck this morning with a big harley sticker in the back window and a japanese truck with a harley-davidson sticker in the back window. >> impressed to hear you had the dealership in the family for 50 years. harley's stock is down because they've struggled. your key demographic getting older, not buying as many. what are you doing to try to offset that? are you seeing that impact in your franchises? >> we are. the recession was huge we saw massive reductions after the recession. what we're seeing right now is the entire motorcycle industry, the pie is shrinking and with harley having the majority of the pie, harley's pie is shrinking also i mean i'll say it's an exciting time to be a dealer.

harley has cool products coming out including an electric motorcycle which i got to ride a prototype a few years ago in tribeca, that's coming out next week at the dealer show in san diego. they've announced a few other models coming out in 2020. i've never seen harley release product this far in advance. cool times to be a dealer because there's cool stuff coming. >> you've told us off camera you're not a political guy just a guy that sells motorcycles. i'm curious what you would tell if you had the president's ear, you as a harley-davidson dealer and one that's been in the family more than 50 years? do you have a message you would want the president to hear >> well, if we didn't have tariffs to deal with it would be a nonissue harleys would all be made in the united states because we wouldn't have to deal with tariffs. $9 million a month, that's a big nut to swallow >> are you having to change the way you're going to do business? do you think the way you have to sell -- you've already said, but it's early you vice president heard any backlash yet, if you

do how would you change the way you do business? >> i don't know if i would change the way i do business i do not watch the major news networks i do not like all the political fighting i watch you guys because you all don't do that. >> i was waiting for you to say that. >> i do. in fact, that's the only reason i agreed to do the interview i did not want to come on and get -- have my words be misconstrued. >> we wouldn't do that i'll tell you what, i have to -- >> that's my problem is misinformation. >> i have to run now, but keep us posted, let us know how things are going thank you for coming on. >> thank you. >> george gato outside pittsburgh. investors brushing off fears about turkey's financial crisis. why it matters to the emerging markets. elon musk teasing investors about his plan to take tesla private. the board caught off guard has it lost control and how rogue has musk gone.

bitcoin falling below 6,000, $20 billion wiped out of currencies in the past 24 hours is it headed lower or ais rebound coming second hour "power lunch" starts in two minutes 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. introducing chase ink business unlimited with unlimited 1.5% cash back on every purchase. chase for business. make more of what's yours.

i'm melissa lee. market shrugging off another global hot spot, this time it's turkey should investors be concerned or is this contained. from bitcoin, cryptocurrencies have seen a fall recently as a recovery in the cars and what could get us there plus the home of the power lunch, inside the four seasons restaurant with the owners grab a fork and napkin, "power lunch" starts right now. ♪ welcome to "power lunch. i'm michele caruso-cabrera markets in rally mode with the dow down, s&p up for the first time in five days. right now the industrials higher by 140 points, the s&p and nasdaq and russell in positive territory. some of the sectors are -- that are going higher, all ten s&p

sectors are higher led by industrials and consumer discretionary. stocks on the move, tapestry, soaring on better than expected earnings and guidance, advanced auto parts, higher on strong results. tapestry higher by 13% weak earnings and lower guidance for switch you can see the stock off by 23%. express scripts higher after carl icahn dropped his opposition to its merger with cigna. it's up 1.6% bill >> michele, i'm bill griffeth. we begin this hour with a news alert on the brewing battle between tinder and match aditi roy has more. >> i know, late-breaking development, iac and match group came out with a statement in response to the suit filed against them by the founders and early employees of tinder. the allegations in the complaint are meritless and iac and match group intend to vigorously defend against them. since tinder's inception match group has paid out in excess of a billion dollars in equity

compensation to tinder's founders and employees with respect to the matters alleged in the complaint the facts are simple, match group and the plaintiffs went through a rigorous contractually defined valuation process involving two independent global investment banks and mr. rad and his plaintiffs did not like the outcome. mr. rad, who was dismissed from the company a year ago and mr. mateen who has not been with the company for years, may not like the fact that tinder has experienced enormous success following their de par tours but sour grapes do not a lawsuit make mr. rad has a rich history of outlandish public statements and this lawsuit contains just another series of them very long statement from iac and match group. the suit from tinder alleges the group of founders and early employees of tinder are owed $2 billion in lost damages on the ground that iac and match undermined tinder's valuation when they acquired tinder.

shares of iac and match group are down right now. >> i know you were reading it but i could hear barry dillard's voice in there both sides digging in. it's going to be interesting. back to the markets, stocks looking pasture moil turmoil for moreless get back to the new york stock exchange and seema moody. >> bill, it's worth pointing out we have gained about 40 points in the last 60 minutes what's helping stocks today? it really started in europe. the better than expected growth data out of europe, plus upbeat retail earnings. tapestry leading the s&p 500 and an small business optimism near a record high. no surprise the russell 2,000 up 1% today the stocks helping the dow, these consumer driven names, mcdonald's, walgreens, walmart, reports on thursday, plus goldman sachs staging a rebound, but those concerns are around

turkey it's worth noting they have not gone away. analysts say turkey will have to stem the decline in the currency, the lira, by raising rates, but that may not be enough pushing turkey to potentially use capital controls to stem outflows that's a dangerous move, but it has been seen as an effective tool by other countries like china. experts point out that turkey's geographical location bordering ir iran, iraq and syria, makes it important in encountering terrorism efforts. beyond turkey the rupee at 69, 70, the rupee at a two-year low, the peso also under pressure back to you. >> thank you seema moody. investors have been focusing their attention on turkey, just how important is the country to the emerging markets are there others we should be worried about? dominic chu has answers. >> so there are. the bottom line here is turkey is a very small portion of the msci emerging markets index.

only about three quarters of 1% waiting and that total index who are the hershavy weights. let's take a look at these according to msci and blackrock, these are the countries that have the most weighting that index. china, a massive part of that particular emerging markets index. south korea at 15%, taiwan at 12%. india is 9%. you heard seema refer to what's happened with the rupee. south africa, it's a 7% weighting as a country in the index. take a look because if you look at the overall etf country wise that tracks these names, where you have the emerging markets index in total up a little bit today. see the down trend firmly in place since the beginning of this year. also take a look at these three countries in particular. they are the ones over the last week from a country perspective that have among the worst performances the msci turkey over the last year 53% down.

the msci indonesian index, 16% to the downside and the msci south africa 8% over the last year as well those right-hand side downturns the ones we want to watch. those jurisdiction, michele, are much larger and important than turkey in many cases and brazil in particular is one to watch. it is probably one of the biggest out there in terms of emerging markets size. back to you. >> definitely one to watch the fate of the lira has been sending ripples throughout the global currency markets. what can we expect is there currency worth buying the latest from kathie, director of fx strategy hi, kathie >> how are you >> first, tell me when we see the major averages recovering does that tell us we will be able to shrug off turkey or too early to tell? >> i think it tells us the u.s. markets are going to be able to shrug off turkey, but i think the european markets, global markets, are still very much in trouble. if you take a look at what's happening in currency today, we had the euro fall to fresh one

year e l year low while stocks are following. it's just a matter of what you're looking at in terms of whether or not it's stable for the u.s. or has ramifications in the u.s. or abroad. >> why are we seeing that? why is it perceived to be a risk for europe what is the transmission mechanism, draw a line for me, would you, from the turkish lira to seeing weakness in european equities and the euro? >> it's three primary factors. first and foremost the fact that the banking sector in europe is very much exposed or had the primary exposure to turkish debt also a fear this is going to hit business as well as investor confidence in the eurozone and ecb policy it could translate into more delayed rate hike by the european central bank. europe is the ground zero for this crisis contagion. i think investors is worried

about ramifications there and seeing the euro perform as poorly as today. >> how high will the dollar index go in your view? we're entering a fed tightening cycle, so how high >> right so the question asked at the beginning of the segment, there is a currency to buy the u.s. dollar is still the currency to buy. we could see another two 22%s to 3% appreciation before we hit any type of resistance level in the dollar index we have u.s. retail sales tomorrow, that should be relatively good and reinforce the story of how the u.s. economy is outperforming. >> kathie, thank you with bk asset management some upbeat earnings reports and a snapback for the lira helping to boost investor optimism this afternoon as we've established. will it last bringing in michael kelly, global head of multiasset at pinebridge investors with nearly $90 billion under management and still sleeps nights as well. welcome back. >> thank you >> i will pick up where we left off, why the snapback?

does turkey suddenly not matter? >> there were reports larry kudlow was speaking to turkey's ambassador last night, so people are hopeful. these two precedence are stubborn people. will we get past the pastor in past quickly, i kind of doubt it. having said that this is not the normal formula for em contagion. that's usually shared weakness infiltration into the banking system in a major way. we really don't have those two things here. we have a narrow political issue. as far as the -- >> with two leaders digging in, rather than trying to stem -- >> with two leaders digging in that is not the formula for broad-based contagion. last time we had good contagion we were in the taper tantrum and had a commodity crash bringing down weakness into most of the emerging countries this time the tie in to the european banks is really five

banks in europe. it's not like all of the banks or even most of the banks have large exposures to turkey. what that means, those five are going to lose market share, but the rests are going to continue financing growth in europe don't see broad-based contaken >> you run a multiasset strategy what do you think offers the most value right now >> we like quite a few things because we've been in a period of great slowness since the crisis that slow down has shaken itself off, all the post-crisis drags just wore off, and we're in a slow motion acceleration which is why this market can take a lot of bad news. we have twin global savings glut, a slow motion acceleration, so we're thrown so much bad news at the tape and within a day or two shakes up one thing after the next

we love u.s. small cap stocks. we like indian equity, even though at the moment emerging markets -- >> small caps aren't expensive >> we don't think so remember they've been in a stalled world for a very long time yes, they've become somewhat more popular look at them historically they had a higher tax rate, they're the prime beneficiary of this tax rate coming down the big companies, they had the 35% tax rate, but their effective tax rate was in the low teens. the effective tax rate of small companies had been in the low 30s. it stepped down meaningfully the other notion of the tax cut, though, is it was more restoring a competitive tax rate, so a lot of business that was moving outside because of an uncompetitive is coming back and it's helping a lot of small companies that are suppliers to that business that's coming back. >> all right >> terrific. >> michael kelly with pinebridge

investments, thanks for stopping by. >> thank you if you think the lira had a bad year so far check out bitcoin, down 53% this year. you're better off investing in the turkish lira than in bitcoin. it's dropping today along with the major cryptos. will it continue two big retailers down and another on deck. macy's will report after the bell the stock on track for its bests year in 15 years does it have more room to run? that's next on "power lunch. it really- it rocked our world. i had no idea the amount of damage that water could do. we called usaa. and they greeted me as they always do. sergeant baker, how are you? they were on it. it was unbelievable. having insurance is something everyone needs, but having usaa- now that's a privilege. we're the baker's and we're usaa members for life. usaa. get your insurance quote today.

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bitcoin dipping below 6,000 for the first time since june. the sell-off hitting all the major cryptos to a combined $21 million in market cap over 24 hours. what is next for bitcoin will the sell-off continue with us is brian and sherry. good to see you both b.k., start with you -- >> good to see you. >> i feel all the reasons you want to be a bitcoin bull have come and they have not sparked a rally. right now we're in the midst of a currency meltdown and that's a case for bitcoin as well not providing a bid for the cryptocurrency what is going on here with this prolonged sell-off >> there's -- i mean the tone is decidedly bearish. an awful lot of positive news and an exchange, fidelity getting into custody, other custody solutions coming out, but the tone has been bearish

and people have been selling what you're seeing now from my view is a bit of panic selling investors that were in it maybe caught the hype in november/december or projectses that raised funds in a bitcoin are now panic selling out. when i look at this, to me it's one of the better entry points that we've had in a long time, particularly when you view it against where support is for bitcoin, somewhere around 58, 5900, as well as the short interest which is almost at records. >> all right so sherry, you're a fund, you advise blockchain start-ups and in this as well. i would imagine have a bullish view when you put forth the case, we've heard this from so many, that this is like the internet and only ten years into development of blockchain or so, and it took 30 years to develop the internet, why should i be invested in bitcoin now then if everybody is going to come forth and say amazon took nine years from, you know, the internet bubble to recover to its highs, why should i be in

this now >> there's an opportunity cost associated with putting my capital into a cryptocurrency now if the development of the blockchain, the underlying technology, is not going to be for another decade or so >> well, it's not to say that there won't be gains between now and that point there will be ebbs and flows when i think back to 2013 when i first got into bitcoin and bought in 2013, 2014, and then saw a gut wrenching 85% decline, that was -- who knew at this point i look back and i'm just sorry i didn't buy more so, you know, in terms of where do you buy and where do you pull the trigger, you know, it's just not having any regard for the long-term potential of the fact that blockchain will be as transformative of the internet and create just the internet

3.0, creating a more secure internet and so many new creative kinds of things that will come that we never imagined having with the internet when we first were exposed to that when we all had e-mail. >> all right brian, you mentioned the ethereum and how a lot of the icos built on the platform, a lot of people are selling out of icos and therefore it's seeing some shoftsness her -- softness. if you're a long-term believer is that where you want to be >> i do think so when i look at it, to me that's like an operating system whether you're going with windows or apple's os, that's what it is to this ecosystem to the extent that you believe in the long-term view you want to make a bet on a couple operating systems. to answer your previous question about why is there an opportunity costs today, i mean i see two major reasons. number one, much better to buy

it today than at 20,000. talk about bitcoin, better to buy it today at 250 than 1400. secondly, this is software, and software can adapt faster than hardware the internet you had to build out these rails that were hardware based now you have software, that time frame can compression, this is bitcoin time, things happen faster than you expect and that's what we'll experience in the evolution of the ecosystem. >> all right thank you. brian and sherry coming up, a retail resurgence story macy's on track for its tenth straight month of gains. can that continue? plus how much power does a board have if you looked at tesla, you think maybe not much maybe we haven't reached peak burger after all that and more straight ahead and everything into the cloud. it's all so... smart. but how do you work with it?

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time for "trading nation." check out shares of macy's surging 5% tracking for its best day since june ahead of earnings before the bell and get this, macy's in the middle of its longest winning streak ever, up for ten straight months in a row. let's get to the trade ahead of

earnings with the "trading nation" team larry and todd pretty strong-looking chart since the new ceo has taken over. >> absolutely. looks pretty strong. if we take a look at the first kind of area, the upside objective post-earnings, we have to go back to 2016 there's a level of 45.5 tested twice in 2016. i think that's going to act as an upside target further, if we look at the drop, which first actually let's start on the short-term chart here, this is the daily chart, okay. what we're looking at is a push through this 41.5 level. i like this. we have to be cognizant of how far macy's has fallen. i like this chart. let's get a bigger perspective step out to the weekly chart and then you can look at that old resistance level at about $45. a pair of old highs from 2016. i personally like the trade. i just put the trade on sitting here in the booth. i bought options to get up to

that 45 strike going out about a month. i like the trade but don't get too far out in this one because there's a lot of wood to chop up >> trading in the booth ahead of the tv appearance. love it. >> technology is amazing >> larry, fundamentally, it's been a pretty good run for the retailers. we're getting good numbers, seen strength in consumer spending and gdp report summer is not traditionally the hottest season for the group do you like it >> this space has become because of the disruption in retail, this is a space you want to rent, don't want to own. i agree with todd, there may be a short-term trade here, but the bottom line a year ago we were on this show "trading nation" as well as "fast money" the capitulation score we had in macy's and the retailers a year ago was spectacular and now we're up 100% on the year, 60% year to date you want to fade that and mark my words in the next 12 to 18

months you will have another stellar capitulation opportunity in the retailers and that's when you want to step in. >> big moves for these companies. thanks for more on "trading nation" head to our website or follow us on twitter still ahead on "power lunch" trade tension hitting farmers so hard one particular crop has become nearly impossible to value. how is it playing out down on the farm that story straight ahead. "power lunch" will be back. >> now the latest from tradingnation.cnbc.com and a word from our sponsor. short selling can help you profit from a stock's decline, however because it involves unlimited risk you must have a plan first screen for poorly rated stocks showing weakness versus the broad markets. second, look for the stocks with the poorest technicals in that group. finally, incorporate risk management techniques into your order to limit potential losses.

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let's get a check of the markets. all three major indices in the green. the dow up by about 123 points the s&p 500 up 18 and the nasdaq

higher by 45 points. chinese internet stocks dropping amid several disappointing earnings reports dragging down alibaba and jd.com you see that stock down by 15.5%. one of china's largest live streaming platforms plunging % 15%. the company gave a weak outlook over the growth of its mobile gaming business. its competitor is down by about 6% right now to sue with the cnbc update. >> hello, melissa. thank you so much. here's what's happening. japan's 15th typhoon of the year forecast to land on the southern most main island tomorrow morning. weather officials say the southern part of the island could get maximum sustained winds of 80 miles per hour and 19-foot waves. after spending nearly three weeks closed due to heavy smoke from the nearby ferguson fire,

yosemite valley reopens today. park officials say visitors to the park should take it easy because there's still a lot of smoke in the area. a late summer heat wave that swept across the u.s. over the past couple weeks is leaving some crops like lemons out to dry. the shortage which was worsened when mexico, chile and argentina reported their supply issues has driven up lemon prices more than 60% since the beginning of june. and 7-eleven offering a double dose of brain freeze this week with a share a slurpee promotion. if you buy any size, you can get a second one free. skip the lemonade. it's too expensive that's the update. back to you. >> should have seen the look on melissa's face. >> sharing a slurpee >> share a slurpee with me. >> one for each. >> i've never been a slurpee person you know >> thank you very much, sue. >> you got it. >> i like the blue ones. the oil market closing for the day. jackie what color slurpee do you

like >> the classic red ones, bill. watching crude prices in the red here at the close as well. we saw crude bouncing with equities this notion that a strong stock market will help spur demand, but the session high today 6837. we couldn't bring the $70 mark not near it. it's a resistance level right now. tomorrow inventories this time of year you should see a drop some speculate summer driving hasn't been as strong and the investors may be building which would not be seasonal and could push prices down stronger dollar should push crude lower too. you can see there's a little support in the trade and that's still from the iran uncertainty. >> thank you. the global trade turmoil continues to weigh on the minds and bottom lines of farms in the midwest. let's bring in mike, a michigan-based middle man for a co-op, a dry bean processing company and also the president of bamp marketing, short for beans are my passion

a marketing firm for bean farmers in case you didn't know. i don't think beans need marketing. everybody loves them, don't they do they need that kind of business i see you're laughing. glad you like that >> everybody loves beans. >> of course they do >> right. >> tell me about the effect that you're seeing as a result of what's going on with the trade war with the president and china and tariffs? how are beans being affected in the united states. i understand you focus on navy beans. >> yes we're actually standing outside a field of navy beans today and this field will be ready in about 40 days to be harvested. it will then be sent to ontario for processing and ultimately to the eu when it arriving at the eu, because it originated in the united states, it will be assessed a tariff, 25% tariff. >> what's the average price for beans and the metric you use you sell them for what and what's the change in price as a

result of the tariff and impact of the price from the tariff >> the price land at the factory in england is $40, traded per hundred pounds, a 25% tariff on $40 is about $10 per 100 weight. that will trickle back to the farmer because the elevator processor does not want to pay it and the farmer is at the end of the chain. >> are sales down because people can buy importers in europe can buy navy beans from other parts of the world >> yeah. what's going to happen is the customers we've built over 40 to 50 years and developed relationships with in selling our navy beans, have to now look at other origins or will look at other origins to find a supply they have factories that run on a daily, weekly, monthly and yearly basis and they have to have a supply of beans to fill those factories. with this tariff in place it's

going to cause their cost of business to go up significantly. >> as you know the president proposed $12 billion of aid to farmers like yourself to help alleviate the pain as a result of these tariffs here. would that help? do you think you would see any how much would you need to make you whole again as a result of these tariffs? >> well, really, the aid package is probably what i would look at as more of a short-term band-aid it's not going to be our salvation. when you build relationships over many years, you hate to lose those relationships in very short order. so to answer your question the $12 billion aid is going to be distributed amongst many, many facets of the agricultural industry the dry bean portion is just a very small portion in the total mix. it will just be a very small help. >> that i get. how much would you need, though? >> how much would the industry need, the dry bean industry? is that the question >> yes

>> well, we stand to lose today because our elevator processors are not shipping to the eu, we stand to lose over $20 million alone just in the dry bean business >> yeah. >> by loss of business >> okay. $20 million. there's a number. >> big number. >> thank you, mike from unionville, michigan. >> thank you. >> beans are his passion >> as they should be. >> i don't blame him. >> turning now to tesla which announced its board has formed a special committee to consider going private after a week-long saga that started with an unexpected tweet that elon musk is thinking of taking the company private. is the board doing the right thing? should it rein in elon musk if it can paul is a professor of corporate communication at dartmouth's tuck school of business. thanks for joining us. >> thanks for having me. >> at this point what can the board do or should the board be doing to -- i don't want to say insulate itself but protect itself in forming a special committee, one of those serving

on the special committee is according to iss not actually an independent director >> yeah. i mean i would think you would want some independence here for one. two, to be asking questions of the ceo about the strategy that he is employing because it's slightly dangerous for two reasons. one is, just the integrity of his comments and when he's making them and where he'sing may these comments and also the implication perhaps he's trying to influence the strategy in some way for short sellers is not something that you want to mess with. i think the board should be concerned, curious, and very interested in what's going on from communications perspective. >> i would imagine these initial communications of the board has with the shareholder base are going to be critical looking back what do you think the board should be doing? what can the board do to protect itself down the line from potential litigation even against the company itself >> yeah. you know this is one of those things where you kind of look at

it as almost a predictable surprise when you have someone as loose a cannon as elon musk is and given the kinds of communications he's already been having they probably should have done something prior to this to try to mitigate some of these losses that are coming in now, but they didn't so now that this is happening, i think you want to have a stern conversation with him. some of the things that have come out today that, you know, the bank said maybe he shouldn't be tweeting while on acid, these are not the kind of things you expect from a ceo of a major company who is looking to go private. i would think it's not just the board, but the saudi sovereign fund that would be interested in these communications along with goldman sachs and watell at some point somebody like an adult has to come in and say mr. musk, you need to be more careful about your communications. >> is the adult the sec? what do you think of what they've done i realize they like to work behind the scenes more than publicly, but we have gotten

hints they have been looking into them even before these latest tweets. >> yeah. i think there is some potential for that, but as you know, our government is also filled with people who communicate in strange and fun ways, so how much they can do at this point is questionable, at least in the short term, but i mean there are laws on the books that should already be kicking in, in terms of what you can and cannot say when anticipating this kind of a deal they should be having conversations with them. >> your -- you're a professor. grade elon musk. >> i would give elon musk a low pass in terms of his communications the reason i didn't fail him -- >> what does that mean a low pass. >> like a c-minus. >> school has really evolved since i attended it. >> like a c-minus. >> do you teach at brown >> i teach at dartmouth.

>> i know. >> it was a joke. >> i know what you're saying thank you. i give him a low pass because on the one hand he is, obviously, capable of creating incredible things and so overall the innovation and the excitement that someone like this brings to the table is worthy of something, but the kind of craziness that goes along with it, just barely scraping by and approaching failure. the board, i don't know what's going on behind the scenes so i'm not as confident about grading them to tell you the truth when you have a company like this with a founder like that, who knows what the board is really made up of and how independent they are. you said that yourself i give them a "d" at best. >> paul, thank you >> you're welcome. well, "power lunch" heading to the birth of the power lunch. after a two-year hiatus the four seasons restaurant is back we'll go to robert frank with the first exclusive look coming up here. robert >> well, bill, for the ultimate

power lunch you need the ultimate power chefs and the four seasons has them. diego garcia is the executive chef, bill is the pastry chef. what's the best dish that people are going to get here? >> i personally love the super light, super fresh, highly recommend it. >> and bill you worked at the white house for both the obamas and the bushes >> yes, i did. >> what have you brought to the four seasons >> my favorite the chocolate tart salted caramel, chocolate ganache, delicious. >> did the obamas like that? >> to tell you the truth they didn't like chocolate. >> they didn't like chocolate. >> i do. >> i do too. >> i love chocolate too. can't wait to have this tart we will serve up all the famous dishes and talk to the owners when we come back. ♪ ♪ ♪ ♪ the difference between possible and impossible?

it's a person who believes they can, surrounded and supported by others - by us - who believe it, too u.s. bank - the power of possible.

you're working with some of the biggest egoes in new york city. >> our ego is bigger than them. >> you have to have a bigger ego than your customers. >> that's it. >> that was 2009 with my pals julien and alex, the co-owners of the legendary four seasons restaurant tell me how they handled their high-end clientele. the restaurant has a brand new location

we're all excited about this i'm guessing they have a similar approach robert frank standing by now with alex and julien i cannot wait to see them there. robert >> yeah. bill, it's been quite a journey. two years you guys have spent, 2016 you moved from your old location, $30 million, a lot of delays, some controversy what does it feel like tomorrow to open? >> great >> finally. >> finally it's been a long arduous time and we miss the customers. >> yeah. >> we know they miss you because i've seen your phone this morning just ringing every three seconds. can i get a reservation. they're names we would know. this place is pretty well booked for the next couple months already, right >> we sure are. >> and what have you kept from the old four seasons there was so much history, so much tradition in that space you are an icon of new york city

culture. what did you keep and what did you create new for this new four seasons? >> well, mostly the space is brand new. >> right. >> but the feeling is the same and the feeling is even more intimate than before it's really comfortable. we had a few dinners for friends and investors last week and they stay forever because it's so nice to be here. it's warm. >> julien, there are a lot of great restaurants in new york city, a lot of beautiful spaces in new york city, but somehow the very wealthy, the top of the top in new york, they all want to come here this is their stage where they can see and be seen. what is the secret ingredient to keeping -- >> they care. >> what does that mean >> we really care about our customer we are not -- we never say no, number one we know their likeses and dislikes that's one of the most important parts of the game. no question about it i really enjoy taking care of my

customer. >> you guys, it's quite a success story from a business perspective. you've been partners over 40 years. i cannot imagine two people more different than each other. what is the secret to your partnership? >> we don't say different. we say complimentary he does stuff i don't want to do and i do stuff he doesn't want to. >> we don't listen to each other. >> $30 million, that's a lot of dover sol to sell. >> and duck. >> and duck. your prices are high, but are you at all worried about what it costs to do this >> i'm always worried. he is never worried. >> the most important thing is to take care of the customer and make sure that they come and to make sure they're very well respected, very well fed, and i don't think that there is anything we should worry about. >> one of the bold faced names that loves you guys in this restaurant is bill griffeth. sorry bill couldn't be with us

you want to chime in >> first of all, i am thrilled to see you two and we -- we all wish you well. i've been waiting patiently or impatiently to get there when i get there -- >> thank you, bill >> yeah. >> go ahead, alex. >> well, i wanted to say, your family is waiting to come here for dinner, so where are you >> we'll be there. >> at the same time, we already have a table reserved for you. >> thank you when we get there, do you want me to feel like i'm in the old building or do you want me to have a new kind of experience even though it's still called four seasons and it's still alex and julien >> i think you should feel like the old time i mean, it's a brand new place, it's a brand new restaurant. we have great chefs. we have great staff. better than ever before. i think you're going to feel very comfortable. >> am i going to see familiar faces among the wait staff as well >> yes, you will >> yeah. >> absolutely. >> good.

>> guys, there are so many famous customers, martha stewart, henry kissinger, nelson peltz, on and on the top of the top, who are your favorite customers? >> all the nice ones >> yeah. who are they >> all nice or some difficult? >> no. you know, the customer, you have to train them. you don't have to worry too much about a big name has to be well trained once well trained they're very nice and we're very nice to them and everybody is very happy. >> who i'm thinking about today, i wish pete peterson were still around, right, so he could see the new place. >> oh, yeah. yeah >> we do too. >> yeah. >> we miss him. >> a lot of people like that but it's nice. >> and lastly, i know that you're like the best private bankers, don't talk about your clients. what kinds of people will we see here in the coming weeks >> well, i think you're going to see people that are movers and

shakers in new york city we're in the middle of town, in park avenue. a great location i think that a lot of people are going to come here because it's a very different space it's a much smaller space, easier to manage every table much easier to mana. and every table is a great table, which is very important they like to go up to the second level, because they have probably with the altitude >> well, cheers to the four seasons. >> cheers to bill. >> cannot wait, guys i'm very excited congratulations. >> i'm waiting for you >> i know you are. see you later, robert. great jobs, thanks so coming up, shares of shake shack higher following a new price target from one analyst who going to join us live now -- next with two reasons why she thinks the stock

is undervalued (indistinguishable muttering) that was awful.

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to that call as well. and so when we show up to a fire and pg&e shows up with us it makes a tremendous team during a moment of crisis. i rely on them, the firefighters in this department rely on them, and so we have to practice safety everyday. utilizing pg&e's talent and expertise in that area trains our firefighters on the gas or electric aspect of a fire and when we have an emergency situation we are going to be much more skilled and prepared to mitigate that emergency for all concerned. the things we do every single day that puts ourselves in harm's way, and to have a partner that is so skilled at what they do is indispensable, and i couldn't ask for a better partner. welcome back to "power lunch. shares of shake shack rallying more than 3% this afternoon after one analyst hiked the

price target she sees two reasons why the stock is undervalued hi, nicole why are you upgrading shares of shake shack? >> thanks for having us. we're increasing our price target we've been buying the stock and we still think shares are a buy. restaurant stocks, they're back in favor and there's not another company owned domestic model with several digit growth that's putting up positive comps. shake shack is in a category of their own. the second piece is the piece that's international one third of those surveyed, those are joint venture stores we'd like to sign a higher multiple to that revenue stream. >> i thought we were at peak burger we saw numbers come out maybe there's restaurant scarcity but everybody's got these new burger joints >> there can be a difference between a company and a stock,

certainly. but thinking about the fundamental behind burgers we're in a meat and potato country that's going to be burger and fries. that's going to come down to culture, and they have the best culture to capitalize on these iconic brands, et cetera there are a lot of better burger brands out there and they're suffering. sometimes we don't understand and appreciate those market share donors and therefore shake shack stability to continue to take market share. >> i never heard that phrase before, a market share donor tell me how you get to this price target of $64? >> basically we take that high revenue stream, we apply a pure multiple of other franchise models out there that are trading at double digits it's a 40 multiple but in line with the peer group. it allows us to pull-down the core multiple by three times

and that's important to investors because now we're talking about multiples that are in line with the historical range. so there's really not much of a premium in there as they are on paper. >> all right check please is next

so every sector on wall street always has its particular vernacular, maybe it's acronyms. i learned a new one today, just now. market share donors, as if they willingly give it up >> it's charitable it's honorable to donate market shares >> i wonder if you can write it up on your taxes >> all these wall street analysts or many of them have these terms which we might call acronyms but they're euphemisms. >> they don't want to upset other ceos of the market share donors >> yeah, when the donor's stock is down. >> there's a tremendous risk that alex and julian were taking by reopening the four seasons. why do people go to the four seasons? was it the iconic location, was

it alex and julian, was it the food i think we're going to find out. i'm very excited to see them come back, and i think the folks that are going there are going for that aura that exists. >> those prices are big. >> thank you for watching "power lunch. >> "the closing bell" starts right now. it's time for "the closing bell." i'm wilfred frost for the new york stock exchange. market shares around the world are rising, but their president mr. erdogan is looking at new ways to hit the u.s. economy at cnbc corporate headquarters, i'll break down what's driving the strong numbers. i'm morgan brennen in new york the next generation of spaceflight. spacex unveiling its new castle and i'll have the details. coca-cola making a new