it is 5:00 in washington the federal reserve is the big focus, wall street and your money today. jay powell speaking in jackson hole today. and a major shakeup in australia. the prime minister ousted from office hawaii on high alert hurricane lane bearing down. we have a live report from honolulu. china upping the pressure on america. trade talks fizzling out what will that mean for your money? and we are rounding out our week-long series of america's top fund managers.

today a woman that manages the number one-ranked u.s. domestic stock fund up 38% this year. she'll tell you how she's beating the street and bring you some ideas on this friday, august 24th as "worldwide exchange" begins right now ♪ good morning welcome to a special "worldwide exchange," i'm brian sullivan. we are live in washington. we have a jam-packed show today. we are also keeping an eye on hurricane lane the storm weakening a bit overnight, but let's not kid ourselves this is a major threat to the hawaiian islands. we have a live report from honolulu where it is late at night and they're concerned. first a check on your markets and your money dow futures are not a lot of help now we're getting futures that will

indicate a rise slightly now, if we stick if the dow gains more than 0.05% we will be up for the week on the dow. by the way, that would be 7 of 8 higher weeks that's how flat we have been this week. dow futures are in the green the bond market is stuck in neutral. oil is creeping higher lately, back above 68 bucks. the euro/dollar at 1.15. bitcoin is up fractionally as well we may be in washington today, but investors and your money will be paying close attention to what's happening about 2,000 miles west of here in jackson hole, wyoming federal reserve chairman jay powell is speaking at the fed's annual symposium there later on today. this comes days after president trump said he was not thrilled with the fed raising rates joining us is mark avalone good to see you on set

thank you for inviting us to your town. what do you want to hear from the federal reserve today? >> i want to hear that the economy is strong, it's robust and it can withstand more rate hikes. people are worried if the fed raises rates, but they're only raises rates if the data is good i don't think they'll accelerate the pace of hikes. that's what the market should worry about. if they come out aggressive, that could be a pullback >> put on your political hat, do you think the president's comments will influence what the federal reserve does >> no. i think he'll bluster, posture, try to strong arm them they won't cave. they might dig their heels in more >> to prove a point. >> to prove a point. the fed has always been independent. >> the federal reserve is not a part of the government necessarily. >> no. >> the employees at the federal reserve board do not get government pensions or healthcare they're basically a banking organization that operates with the blessing of congress you think they'll go ahead and

do what they feel is best for the economy and their mandates, inflation and maximizing employment >> right right now inflation is a little bit of a risk with the strong labor market wages have been rising 2.7% for the past three months. that's the first we've had in a decade the fed will be looking at the inflation naary pressures. part of that is economic news. >> when your clients call you today and ask you then what do i need to think more about do you tell them it's the fed? do you tell them it's trade? trump? do you tell them something else? what are the key things we need to talk about? how do we cut through this >> when you cut through it you focus on corporate earnings. corporate earnings is the number one driver for stock prices. you can look at the underlying reasons for that, strong gdp, strong global growth, you want to look at the strength of the consumer, low debt levels, high wages, inflation is moderate it's a rosy picture for stocks >> too rosy?

>> warping si warning signs are. the ten-year, dropping interest rates. this market has had a narrow focus with tech, consumer discretionary, which is a lot of amazon and netflix if you take away that what is the rest of the market doing it's a halitosis market. there's bad breath in this market so what we want to see is it expand out see better breath in the market. we want to see financials shrug off the fact that there may be problems >> so foreign capital coming here because of what's happening in turkey, italy, the junk bond market, maybe seeing movement into treasuries, do you think that's what it is or is it saying warning sign ahead, we're earlier than the stock market? >> it could be either. bond market, smart money in the

bond market. >> that's what they say. >> that's true i think venezuela, turkey. the italian banking system has been in crisis comes in and out of the headlines. >> it might be our top story were it not for turkey, trade, tariffs, trump >> that's true you could look at deutsche bank in there as weak european financials. i think the bond market and the financial sector is saying the same thing there's an unknown out there somewhere. i think that's where it's lurking. >> i think somebody from this town said there are known unknowns, known knowns, and -- >> with a much more fancier accent than i have >> great stuff going into the weekend. appreciate it. we're following a developing story out of australia the prime minister ousted from office overnight the nation's treasurer, scott morrison, will become australia's sixth prime minister in over a decade the aussie dollar is moving

higher on the news joining us now is jamie smythe, australia correspondent at "the financial times. thank you for joining us how big of a surprise or not was this move? >> certainly this week there's been political chaos in australia. we had two leadership challenges, we had the parliament making moves, it was a surprise that we would have a change in leader, but today on friday, it was lining up as a three-way challenge between the treasurer, scott morrison, the home affairs minister, peter dutton, and the foreign minister, julie bishop malcolm turn bull stood aside and let them have the leadership challenge, and scott morrison won in a tight race. so 45 mps voted for scott

morrison, 40 for peter dutton. it's quite a divided party it will be a difficult period for the government ahead >> are your sources saying because it was so close that this will be a troubled and divided political party going forward or can the sides come together for a common agenda >> there's really bitter personal animosity within the liberal party. there's an ideological split within the party there's quite a deep division that will be difficult to heal as well as that, this liberal national coalition has a majority of one seat in the house of representatives and malcolm turnbull has indicated he will resign from parliament at some stage in the coming weeks so that means it will be a minority administration even though we have a new prime minister today, the troubles for

this government are certainly not over it's going to be a challenge for so the morrison to keep it together there has to be an election by sometime within the first half of next year, but it could be much earlier than that >> one of china's most important trading partners as well jamie smythe, thank you very much for joining us. now to today's top corporate headlines. what are the stocks you need to watch? contessa brewer is back with those. >> your big individual stock stories include gap. the retailer struggling to survive. same-store sales fell 5% in the second quarter offsetting gains at old navy and banana republic. art peck says the company is working to correct inventory backlogs shares down 7%. ross stores reporting better

than expected second quarter results, but the off-price chain disappointed with third quarter guidance it had same-store sales growth of 1% to 2%. hp's second quarter earnings and revenue beat forecasts it's raising its full-year profit outlook they are benefitting from strong growth in its personal systems business shares down 2.35% today as analysts point to disappointing margins in hp's printer business >> contessa brewer, we'll see you in a minute. great stuff yesterday from massachusetts. we are just getting started on a friday on "worldwide exchange." up next, trade troubles, china ramping up the rhetoric, trade talk fizzling out. we're live in beijing with the latest. and we're following that developing story out of hawaii, the scary and big hurricane lane taking aim we'll take you live to honolulu whenwodwe chge "rlidexan" comes

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the finance minister said that china will strike back every time to defend itself but that the counter strikes would be targeted the minister said we are responding in a precise way. the minister said china did not want bystanders to become collateral damage including american companies saying when we take measures we try our hardest not to harm the interests of foreign businesses in china but the minister said he's most concerned about the welfare of workers here he said that the trade conflict so far has not had much of an impact on the economy, but he anticipates job losses in the export sector. to counter that he said the government plans to spend more to help unemployed find new jobs, ensure basic social security, and that beijing wants local governments to issue more special bonds to fund infrastructure and expected the bonds would blow past 1$145 billion by the end of the current quarter.

the minister insists that what he described as a more proactive fiscal policy is not going to blow out the budget. he said we are not talking about massive stimulus, nor do we want to incur financial risks let alone getting the government to take care of everything. but many economists are worried about exactly this saying that they're worried china will continue to spend and that could lead to further problems down the road >> eunice yoon, thank you very much let's bring in on set jimmy p.a g guy who gets up real early our oldest going to college. how does that feel, terrifying >> the whole thing is terrifying >> these are our little girls, they grow up now trade, china first and then mexico >> right >> nothing happened this week in

d.c., did we expect it to? do you believe the two sides are on track to make some kind of a deal >> i don't think so. i think this is a long war between china and the united states i think china is unclear what the u.s. goal is i think the u.s. is unclear what its own goal is. >> tell us what is our goal, the united states? as you see it. >> well, i think the goal -- i think i know what the goal is. >> that's why we have you on >> the goal should be worrying about technology transfer. worrying about stealing intellectual property. to the extent you will worry about that stuff and not focus on what you should be doing as a country, that's what we should be concerned with. you have people in the white house very worried about the trade deficit. others worried about supply chains i think china is not quite sure what a deal looks like if the end game is supposed to

be them who abandon their industrial policy, made in china 2025 plan to get rid of subsidies, if that's the end game, they won't do that >> we have tariffs on 50 billion in products. it's not 50 billion in tariffs, it's 12.5 billion if all those products come in they are still small numbers >> right >> do you fear it gets bigger? >> i think it is going to get bigger >> isn't the eurozone the worry, not china? >> these tariffs are not good. they're not like a tailwind for growth eventually tariffs will be on the whole kitt te ten kaboodle they stressed the chinese economic model that's a big ask

>> the mexican model -- if viewers are confused, we are don't blame them it's to get slightly more percentage of a car made here. >> all of this for slightly more >> that's it that's the view. >> presidethe president called h worst trade deal ever, and in the end we're trying to get more of the car made here >> assembled here. that's what we're trying to do that doesn't seem that difficult a goal will we -- it looks like we'll get a handshake agreement today. >> i don't know if it will happen today after mexico -- this will not be solved -- it needs to be a three-country keedeal i think eventually that happens. there's things canada wants. you can mess with those content numbers. do you include intellectual property as opposed to radiators

as part of the content that deal eventually gets done i can see a path to that happening in a way i can't see right now with china >> it feels like in some ways you have two dads yelling at each other across the fence, inside the families are actually making a deal and they like each other. >> right >> that how it's going we have president sort of throwing barbs, president xi, but there are people sitting in rooms making deals with mexico and canada hopefully will come to the table >> the president can still scuttle this if the u.s. is going to insist upon these things need to expire after five years it will be hard to get a nafta deal. that's a key sticking point. >> no business will change what they do on a five-year plan. >> that's it you cannot plan for that even though it looked at one point maybe we would give in on that, that's still a sticking point. that needs to go >> jimmy, have a great day appreciate you coming in

>> always glad to be here. still to come, lane takes aim. high winds and rains lashing the hawaiian islands it's a category 3 hurricane but still a big one. jay gray live in honolulu. jay? >> yeah, don't let that drop from 4 to 3 fool you, this is still a dangerous storm. details coming up. with tough food, your dentures may slip and fall. new fixodent ultra-max hold

gives you the strongest hold ever to lock your dentures. so now you can eat tough food without worry. fixodent and forget it. man: are unpredictable crohn's symptoms following you everywhere? it's time to take back control with stelara®. for adults with moderately to severely active crohn's disease, stelara® works differently. studies showed relief and remission with dosing every 8 weeks. woman: stelara® may lower the ability of your immune system to fight infections and may increase your risk of infections and cancer. some serious infections require hospitalization. before treatment, get tested for tuberculosis. before or during treatment, always tell your doctor if you think you have an infection or have flu-like symptoms or sores, have had cancer, or develop any new skin growths, or if anyone in your house needs or recently had a vaccine. alert your doctor of new or worsening problems, including headaches, seizures, confusion and vision problems. these may be signs of a rare, potentially fatal brain condition. some serious allergic reactions can occur. do not take stelara® if you are allergic to any of its ingredients.

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welcome back hurricane lane is losing a bit of steam as it nears the hawaiian islands, but this storm still has the potential to be catastrophic jay gray is live in honolulu for us it's already done some major damage look, winds here in honolulu have intensified a bit we've seen the surf that continues to grow. you can hear there's still some people out right now because there's no rain at this point and the system slowed down a bit which means the worst of conditions from here are still on the way rising floodwater, pounding surf across the islands as lane continues to move in the massive hurricane is a triple threat. rain, some areas could see 30

inches or more, damaging winds and waves. >> we're extremely concerned about the potentials for inland flooding, landslides occurring, and damage to the transportation, communications infrastructure. >> reporter: the dangerous conditions are expected to continue for 24 to 36 hours. >> it will hang around for a while as it moves because it's moving slowly. that's why we're taking so much precaution here. >> reporter: and why so many are concerned as the storm lingers so will problems here. >> bottom line is we're concentrating on critical lifelines. health, safety, security. >> reporter: as lane continues to churn and move closer to the coast. you know, with the system slowing down and a bit of variation in the track, the worst of lane here is not expected until late tonight into saturday morning >> jay, we know the tourists are

there 12 months out of the year. how are the tourists handling this storm are they packing up and leaving or are they even able to get out? >> that's the thing. a lot of them are not able to leave. a lot of airlines shut down flights in and out the hotels are full. a lot of people here that have not been through a hurricane before, and officials are stressing to the tourists here, 300,000 across the islands now, to stay inside watch this thing from afar don't get out on the surf or on the beach where you can get hurt that's something they stressed with first responders coming by with bullhorns and telling people to get off the beach. they want to make sure everyone is safe. >> jay gray, be safe thank you very much. all right. let's check the other top headlines. frances rivera has that. nbc news has confirmed

federal prosecutors are granting david pecker eer immunity intoe investigation of michael cohen a new study finds finding any amount of alcohol can be hazardous who your health. alcohol kills 2.8 million people globally each year causing cancer, heart disease and road accidents. they found no evidence that drinking alcohol can improve health and havoc at a military parade in russia as a tank topples over while trying to mount a transport trailer. the giant tank drove up the back of the truck and tips over on the right side no one was hurt.

you see that video it went over the other side there. >> apparently drinking alcohol is hazardous, if you don't have a cocktail on a friday night, you could be the tank. >> have a great weekend. we are wrapping up our beat the street series. today you will hear from america's number one domestic fund manager she's up just 38% this year. her keys to success ahead. and lol what the bold move one consumer brand is taking to court to court millennials. we'll explain after e thbreak.

the federal reserve front and center on wall street today. housing alert, rates on the rise how much of an impact will that have on your home value and your mortgage. and we counted you down all week number one is around the break america's top performing fund manager making 38% returns for her clients. up next how she does it and some of her best ideas as "worldwide exchange" rolls on ♪ >> i ask my team to play the worst song they know by starship

and they did it. thank you for being with us. i'm brian sullivan we have a lot to get to this morning. we're live in washington, d.c. before we do that, let's check the headlines. contessa brewer has those. >> i beg to differ with your musical summary. you meant the best song ever the fed is sure to be in focus today. jerome powell set to deliver a speech in jackson hole u.s. authorities are investigating microsoft for alleged bribe lry in hungary. the s.e.c. is looking at how it sold its word and excel software to firms in hungary at a steep discount microsoft says late yesterday it fired four employees and

terminated its relationship with four businesspartners in hungary. apple has been on a hiring spree and they're tapping talent from tesla positions include everything from manufacturers to security to supply chain experts. former tesla employees offered several reasons for jumping ship including lagging compensation and stock price growth >> apparently everyone is working for the weekend. maybe we can play that next. we have a serious news alert. moments ago a magnitude 7.1 earthquake striking north of peru this is more than 70 earthquakes in the pacific ring of fire over the last 72 hours. it's been a hotbed there storms in hawaii and now a major earthquake striking off peru we'll follow that story this

morning. stock futures not giving us help they're in the green about 57 points if the dow rises 0.05% today, it will be the seventh up week in eight. right now it looks like we can do it. back to trade. your top story in this town, trade talks between america and china ending with a bit of a thud no major resolutions coming out of two days of talks now china's finance minister ramping up the rhetoric again. new tariffs kicking in joining us is mattie duffler welcome. >> good morning. >> so before we get to inside the white house, tie together for viewers -- because the trade story is confusing so much going on at the same time what have you guys at the ntu decided was the real risk for our viewers, for american home owners and investors from the

trade talks? >> looking at the fundamentals now in the economy, there's a lot of consumer confidence, a lot of business confidence the economy looks good you have a tax cut coming down the pike your income has been higher because of the paycheck getting bigger americans are confident, but there's an anxiety in the economy because of the trade and tariff war, this is happening in communities in the midwest where farmer the have a big constituency taxpayers are seeing inputs getting more expensive that's the major concern we see moving into the next year and the midterm elections. >> i guess there's two schools of thought about the economy and trade. one would be the economy is so good, this is when do you this stuff because you have leverage. the other school of thought is why is the white house trying to muck this up when they have so much to crow about >> i come from the school of thought it's never a good time to start a trade war or a good time to increase taxes on

americans. that's what americataxes are. you can say the economy is strong, it's good to tinker around the edges with it, in our political environment now, if you're the president you have to be wondering why would i take the steps that would dim the economic enthusiasm that we have going into the midterms. republicans right now should be running on the strength of the economy and what they have done with the tax cuts. trade muddles that message >> there seems to be one gentleman in the white house who has the ear of the president, it may be larry kudlow and peter navarro. i knows there been talk that navarro is secretly a democrat and is coming out with these pro-union, pro-labor, pro-u.s. ideas. does peter navarro need to go? >> these policies are protectionist in nature. that's the goal for these tariffs. for peter navarro, it's not just a negotiating tactic or

leverage, tariffs are an ending in and of themselves they're harmful to the economy, harmful to americans all the americans who thought that president trump was their guy in the white house who would stand up for the little guy and shake things up, there is this guy who has the president's ear who doesn't have those same objectives in mind what do you thinkobjective are? >> he was a democrat running for the house, all of his economic theory is at odds with the united states. free markets, getting rid of the tax burden, all of the things president trump has done, peter navarro has a history of arguing that is not the vision for the u.s. >> what is the best outcome? what should the white house be doing? >> the white house needs to give a clear picture of what its

trade objectives are the e ushgeu is a prime example. >> talking about new auto tariffs. >> that's right. when you talk about the eu, tariffs are a negotiating tactic, not an end all economists agree that tariffs are a bad economic move. >> the theory is that, yes, tariffs are a tax, but if we get more made here, wage inflation in a good way will go up so the american consumer can offset any higher prices with higher wages because now that washing machine will be made in ohio again, not in china or mexico >> look at the other factors in play here. getting rid of that corporate tax rate, taking that down to 21%, allowing for the capital investment that has been completely latent for the past

decade, that will cause wages to rise >> mattie, the trade talks not going away, but we'll see you again. thank you. time for the top trending stories. what are you going to be talking about at the office tessa brewes >> lyft is helping to get out the vote they will offer a 50% discount on rides to the polls for the midterm elections. some people in underserved communities will be getting free rides. lyft is reminding passengers to register to vote through their app and social media accounts. america's biggest grocery store chain is taking a stand against plastic waste. kroger plans to eliminate single use plastic bags from all of its 2800 stores within the next seven years. the company will transition to

reusable bags, paper bags will still be available but customer also have to pay for those i think the story of the morning, the story you'll be talking about is a story that is maybe nbd at first, but it made me lol i laughed out loud nbd stands for no big deal procter & gamble wants to trademark a bunch of three-letter acronyms to use on, you know, dish detergent packaging. the brand giant applied for trademarks on acronyms like lol, wtf, and nbd it's part of the company's efforts to court younger customers. wtf, and i had to look up another one, fml, which we can't say on television. i don't know how you put those on tisch so on dish soap >> when i think of catchy acronyms, i think of dish soap

>> they apparently need to get the younger people in there, washing the dishes >> they will do that -- >> there's plos, you know what that means >> i have no idea. >> you will. it means parents looking over shoulder apparently it's a warning when teens are texting or instagraming, i can't continue this conversation because plos >> you know what resolution is to that? no screens take the phone away and smash it with a hammer. >> contessa brewer, thank you. still to come, talking about housing. what rising rates may mean to you and your housing investment. thank you for the music. ♪ ves, down to the very server. it keeps your insights from prying eyes, so they're used by no one else but you.

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the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. healthier brain. better life. welcome back to "worldwide exchange." wall street and wyoming will be squarely focused on jay powell the fed chief will be speaking later on this morning at the annual symposium in jackson hole, wyoming. the topic of rising rates sure to be a big focus in the speech. that's something that nearly every homeowner and potential home buyer needs to be paying close attention to let's talk more about the impact of rates and housing and bring in diana olick who joins us on set. thanks for having us in your home >> you're welcome.

>> we've been talking about supply, demand, inventory, nobody wants to sell have we talked enough about the potential impact of rising interest rates >> you can't talk enough about that people don't buy a house for the price, they buy it for the monthly payment. in the past six to eight months that monthly payment has simply gone up. will it affect certain buyers more than others absolutely if you're buying a bigger house with a bigger mortgage, it will bother you more. if you're putting a lot down, it doesn't bother you as much the first-time home buyer, the millennial, they're making lower down payments. they're more on the edge of homeownership, that higher rate will matter. >> so your years of following the market, people don't look at a home and say i can afford 600,000. they say i can afford 3,000 a month. >> right here's what i have to put down >> i'm guessing they spend every dime of that 3,000, do you not when you're a first-time home buyer, you do. when you have kids, other things, other payments, you

factor those in as well. but as a first-time buyer, that huge cohort of millennials we're looking at coming into the market, they're looking at that monthly payment. is it keeps going up >> let's bring in mark fleming, chief economist at first american for the first decade of doing this i said things that were incorrect. >> me, too >> honestly. i thought for a long time mortgage rates were almost directly linked to the ten-year bond yield, so if yields went up, mortgages would go up. you have put me in my place in a good way they're related, so if we see the ten-year move higher again, what can we expect from mortgage rates? why do they move >> diana made a good point we buy based upon the monthly payment. so that first-time buyer is sensitive to rates that's the source of demand today in the housing market. we already see now that pullback because of affordable.

not everywhere but in some markets. house prices are reflecting it if we see the ten-year yield, it touched 3%, we act like it's high now for some reason if the ten-year goes up, do we expect mortgage rates to go up >> mortgage rates would go up, yes. they loosely follow the ten-year but there's other factors in t like the government pulling out of the mortgage market, are new investors coming into the market we know that we're not having the government play so much in the mortgage market so more. we're looking towards mortgage reform potentially, what will that mean to rates it's looking at how muchhigher rates are. i bought my first apartment in manhattan, 9%. >> felt good about that, right >> i won't tell you what year, but it was really good house prices have been rising because mortgage rates have been so artificially low.

so it's kind of part of the problem if we see rates go up, home prices might come back a bit. >> is there any reason to be worried now? we're seeing radio ads, commercials, no money down, 5% down >> is this happening again >> yes that's kind of what i'm asking are we getting stupid again? >> it's hard to say. we have to be concerned about those kinds of financial innovations. >> that's a nice way to say it >> but there's really fundamentals that are different now than back then >> tell us why it's different. >> this time it's different. we have strong fundamental demand in the first-time millennial buyer yes, there's a response to rising rates, but also we have not built enough homes people like to live indoors, there's going to be a strong

push on housing because of those fundamentals >> i don't think you'll see those mortgages again. foreclosures, delinquencies are at record lows now the market is still tight when it comes to underwriting because the government is backing the vast majority of these loans. >> i can't get over the amount of building here in washington >> incredible. >> mm-hmm. >> are they out of cranes? i wish i was a crane sellerment. >> it's a hot market right now >> diana, mark, appreciate your information on a hot topic thank you very much. on deck, our beat the street series wraps up today. we counted you down all week friday is here the number one domestic stock fund manager in america is your guest, she's made 38% for her clients this year. we'll show her your strategy and meet her after this.

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let's wrap up our week-long beat the street series all week long we've been profiling some of the top performing stock funds this yemorning we have one thats up 38% we early spoke with amy zen, how they has success and beat the street >> it's a testament to bottom up investing. >> we look at so many fund managers, talk to them on cnbc you went to columbia business school you come from the value school help viewers get smarter about how they analyze their holdings. what are one or two metrics you

look at most closely >> that's a great question i think i was schooled in value investing, i think that really helped me in terms of my investment temperament, i pay a lot of attention to downside protection intrinsic value it the most important. at what price to buy we spend a lot of time running different scenarios. for me it's always important to have very solid bear it goes back to what ben graham said, in the short-term-te the market is a weighing machine i define revenue which is a better indication of size. at the core of what we do is identifying exceptional small companies very early on in the

corporate life cycle that have the potential to become successful large companies those companies are usually coming of age, undergoing positive dynamic change and we look for sustainable, durable revenue growth supported by a strong and wide mote, and usually that gets stronger, and usually that holds or expands, and we look for a long-term profitable growth and eps drives that price frlts you' >> you're dealing with companies that may have no analysts covering them. you have to look at thousands of companies. eight years ago you had cantel medical, they had a big drop after earnings, you said this dropped too much for me to be comfortable with it. how did you know that it fell too much why have you stuck by this company for eight years?

>> yeah, cantel is a great company. back then maybe only one analyst covered it, which was great. at that time they were undergoing, you know, sort of a change i always look for growth not priced in so the dialysis business back then was a cash cow. i always liked a cash cow that can support was growth engine. so at thatendoscopy. so this is a pattern recognition for me that favorable product mix generates revenue and profitabilities over the years just recently they had a hiccup, so we bought them on weakness. i think cantel over the long-term should still do well >> veeva, again, more in the medical science field what made you attracted to this company? >> they are cloud-based software

company. they are the industry cloud for life science business. sort of the same pattern they started with crm, a long-term partnership with salesforce.com they went public in 2013, but back in 2015 when i started initially investing in them, they just started veeva vault, which is a growth engine people were skeptical. the stock was stuck in the mid 20s for a long time, i think six, seven months and we were building a position, because we believed in vault, which does regulate content management for regulated industry for starting with life science. now it worked out that vault is growing 50%, it's becoming over 40% of their business. also higher margin so sort of like same pattern recognition, even though it's a

different business still, like cantel, they overall have great margins >> you have the fund up 36% up this year. number one stock investment manager out of all of them great work by her. thanks for that series all week long that brings us to the friday rbi. up 38% this year sounds good, consider how good that is. 38% is better performance than about 350 of the s&p 500 stocks this year, and it's been a good year it's 6% better than the best performing dow stock, nike 14 dow stocks are down this year her gains are more than double

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good morning an australian surprise the country's prime minister was ousted overnight after surviving a leadership vote earlier in the week details straight ahead the fed is in focus. jay powell prepares to deliver a major speech in jackson hole and hurricane lane dumping 19 inches of rain on some parts of hawaii's big island we'll get an update on the storm's path on this friday august 24, 2018.

"squawk box" begins right now. ♪ live from new york where business never sleeps, this is "squawk box. ♪ good morning welcome to "squawk box" on cnbc. i'm becky quick along with joe kernen, andrew is out today. joining us for the hour is peter boockvar, he's chief investment officer at bleakly advisory group. good morning great to have you here today we'll talk about everything happening in the markets, first let's check on the markets u.s. equity markets are indicated higher dow up by 63 points. so far for the week the dow is down but only by 12 points if things go like this today, you will be looking at 77 out of 8 weeks in a row where you have seen gains for the dow and the