buying dividends. >> data analytics being bought by moody's the company had cash deal, to me they're stealing the company i think you buy it >> box, bought it during the show b.o.x. >> thank you so much >> enjoy the weekend "power lunch" starts now welcomwelcome, everybody, to "power lunch." i'm tyler mathisen three major breaking news stories we're watching right now. number one, former trump campaign chairman paul manafort pleading guilty and cooperating with robert mueller as part of a plea deal. new reports that president trump wants to move ahead with massive tariffs on chinese goods, the markets moving into the red on that news. and, of course, hurricane florence crushing the carolinas. a storm whipping up punishing winds, massive flooding and devastating destruction. we have live team coverage

today of all these events. standing by at the courthouse in washington, d.c. eamon sjavers at the white house and jackie deangeles on the ground in north carolina we begin right now the ground with ylan. >> pleading guilty here at u.s. district court to two crim charges and prosecutors say that he is willing to cooperate with the mueller investigation as part of that plea deal now, this hearing lasted for about an hour and manafort's attorney spoke briefly to reporters after it was over. >> tough day for mr. manafort but he has accepted responsibility and he wanted to make sure that his family was able to remain safe and live a good life. he has accepted responsibility and this is for conduct that dates back many years and everybody should remember that

>> the judge in this case said manafort could be facing five years in prison for each of the criminal convictions, but his maximum sentence from 17 to 22 years. he's also facing up to $400,000 in fines and has agreed to give up several new york properties, including an apartment at trump tower. now, manafort is in custody. some debate over whether he might show up in a jump suit today. he did get to wear a business suit for the procedures, white shirt, purple tie and, guys, he kept a calm and expressionless demeanor throughout the procedures, even as he officially entered in that guilty plea. his attorneys are due back here in court in about 60 days for a status update. >> thank you, appreciate it. let's get over to eamon javers at the white house. the market reacting to new reports about president and tariffs with china hi eamon. >> getting statements from the

president's legal team and white house spokesperson here's what rudy giuliani has to say about all of this. an investigation has concluded with a plea having nothing to do with president trump or the trump campaign the reason, the president did nothing wrong. sarah huckabee sanders also issuing a statement a few moments ago saying this had absolutely nuthing to do with the president or his victorious 2016 presidential campaign it is totally unrelated. meanwhile, separately, we're getting these wire reports that the president appears to have suggested to aides that he would like to move forward with the $200 billion in tariffs against china that had been pending here going through the process over the past several weeks and month. now, let's review the bidding as to where we stand. just in term of this china tariff process back on june 18th the president directed to identify $200 billion in chinese goods that would be subjected to the additional tariffs on july 10th.

the u.s. trade representative initiated that process and back on september 6th just a few days ago the period ended and now they're sorting through those comments and figuring out what action they're going to take the president could announce the new tariffs at any time if he so chooses. even if the paperwork is not entirely complete. give us a sense of where he's going on this. we haven't had this yet. everybody here is on pins and needles to find out if the president will move forward with the tariffs and when he's going to announce it >> the talks, apparently, embryonic talks will continue between the u.s. side and chinese side even as they move forward on a separate track on these tariffs. >> a lot of tea leaf reading earlier in the week when there were talks between the treasury secretary. a lot of folks sort of saw that and said, ah-ha, must be the case they're pushing off the te tariff announcement, but they

could do the tariffs and talk at the same time. that would remove a lot of the white house's leverage you think they might not want to do that. anything is possible >> eamon, thank you very much. to hurricane florence. it is pounding the carolinas, but the impact of this hurricane will be felt much more broadly as 34 million americans live in areas where at least three inches of rain is expected we have our reporters all over the story. jackie deangeles and we begin with katelyn mcgrath here in studio >> did make landfall and the worst of this storm yet to come. churning off north carolina a really broad spectrum. rain from raleigh down into wilmington and we were talking about the tropical bands and the hurricane force winds and we are expecting florence to maintain that category 1 strength as we head throughout the day today. the majority of the storm still over water and help fuel it and

maintain strength throughout the day and weakening today and into tomorrow right now the national hurricane center continuing to push florence into south carolina and overnight we'll see it weaken into a tropical storm. likely some time tomorrow. that is good news for the wind, but the heavy rain will continue to pound much of the carolinas throughout the weekend forecast. eventually lifting to the north as we head through early next week now, while this is mainly a flooding storm we are talking about the heavy rain and that dangerous storm surge. we are still seeing a big wind event. hundreds of thousands of power outages already and a lot more to come as we head through the weekend and you can see why. check out the wind gusts we've already seen so far. we've seen wind gusts in excess of 105 miles per hour in wilmington the last time they saw wind that strong was 60 years ago when helene moved onshore in 1958 triple digits through cape fear, as well. a lot of rain to go. we'll continue to track florence and continue to bring you the

latest >> ki taitlyn, thank you. jackie has been standing by and, jackie, take it away. >> and with the temperature said this was going to be the bullseye, that was a pretty accurate description the eye of the storm passed through a few hours ago. we had little bit of calm. but as you can see the worst winds that we have seen all day picking up now extremely severe wind gusts and very heavy rainfall. when rain comes down and blows it actually gives it a hail-like feel behind it in the ocean, you can see the waves are larger than we've seen all morning and basically swallowed up the entire beach it goes through the water straight to the dunes. flooding has been the concern all along with this storm and in the streets of carolina beach, the flooding is happening now.

fire hydrant nearly covered with water and that is the problem not only with the rain accumulation but also from the water that is coming from the beach. so, residents here that have stayed pretty much, we haven't seen a stall people that come out and look and nothing like that. the winds here so severe we ran into some police patrol people who were telling us about flooding situations down the road, as well. this is an ongoing problem with florence just refusing to let up at this point. that is one of the worries, as well that this storm was going to come and hit this region hard. people saying there isn't one person that is not going to be impacted by hurricane florence 500,000 plus without power in this state alone right now 200,000 in the shelters seeking assistance at the moment guys >> all right, jackie, thanks very much. stay safe and we'll check back with you later during the day.

so, what is the impact of florence so far on local businesses in nearby wilmington, not far from where jackie was reporting. joining us is natalie english, chamber of commerce. we're glad you're with us. where are you now and what is the status in wilmington in terms of power outages and flooding >> well, i evacuated to charlotte upon recommendation of our local emergency officials. and so, you know, i'm watching much like you and others are from a distance and yet staying in touch with mayor bill saffo and county commission chairman who i spoke with earlier today and they told me the first round of it, as it went through, was certainly scary. a lot of wind, a lot of damage a lot of trees down. but as your reporter just shared with us, the worst is probably yet to come because of the direction that the eye crossed and made landfall. so, we continue to monster

activities and there's no power. so, it's hard to reach folks only those folks with generators are able to charge their cell phones we're resilient people and i know we will be back up to full power soon >> this is a slow-moving storm like the one last year that hit southeast texas. and that means flood damage is probably the main issue here how quickly do you expect that some of your businesses may be able to get back to work >> well, we in wilmington are fairly fortunate geographically. we're above sea level to a certain extent i do think that many businesses will get back up fairly quickly. the region and the whole state of north carolina, certainly that eastern third of our state that is really at risk the counties around wilmington, pender county a lot of rural area the agriculture economy in north carolina is a big one and a big impact on the entire country

that that flooding will impact access to the hog farming industry, the chicken farms and other things that the rest of us all over the country take great advantage of to feed our families >> what about things like tourism. jackie our reporter down there just pointed out that so far the water, the waves, all the way up to the dunes beach erosion is going to be a major problem. how do you deal with something like that? just sort of restore what has been destroyed in a storm like this >> well, we've been through many storms and as a state and as a regional community and we bounce back we have the resources, we have access to the plans that will renourish our businesses we will have tourists back in our region very quickly. it is, it is the back bone of our economy and we will do what we need to do to renourish the beaches and restore facilities and it won't be months and

months as you might be hearing people forecast. we believe we'll be able to get things back up and running much more quickly than that >> natalie, quick question for you. i spoke today earlier with lieutenant general who was in charge of katrina and he cited a pretty stunning statistic. in six months after a flood event he had gone back and studied time and time and said 40% of small businesses get wiped out and they didn't have the money to have flood insurance and tourism shuts down what help do you need, what help can you offer to any small businesses within your area? >> we're already communicating with them about the resources they can access. and the wilmington chamber of commerce is focused number one on advocacy on behalf of our business we will be where we need to be to ensure they get connected to the resources they need. however that has to happen and one of the reasons i evacuated so i could be in a position to get to where i need to to access those resources

>> natalie, thank you very much. good luck to you and your fellow north carolinians as you weather this storm let's get a quick check on markets this hour. stocks giving up earlier gains on president trump wanting to proceed with huge tariffs on china. all on track for a positive week the dow is down by 73 points at this hour. the dow transports, however, hitting a record intra day high. and we'll find out what investors are saying with all the market moving headlines, plus, the economy is coming along, but is the consumer beginning to get tapped out? a busy friday. we have it all covered for you you'll want to stay with us.

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welcome back, everybody. retail sales out this morning. only a small increase. what does that mean for gdp? steve liesman is here and has an update. >> one of those numbers, becky, where the number was weak but really strong. economists don't care when you spend the money during the quarter, as long as you spend it during the quarter the result of all of this is the cnbc rapid update tipped up. 3.3% yes, up. weak number but because they

were vised up june the spending quarter is going quite well range 3.3% to 4.3% second quarter and, folks, don't look at this as a come down because we're very well above potential and have to put a big asterisk on this and how the hurricane will affect the economic growth. 4.4% for the atlanta fed morgan stanley 3.4% and hfe/mufg/goldman still rounding out the bottom at a still strong 3% 0.1% autos and july revised to 0.7. you really were off by a tenth you can see miscellaneous retailers. august 2.3 july down 2.3. electronics up 0.4

down 0.4 in july august, 0.2 for food and beverage and back in fourth year and a lot of weakness in july and weakness in august was great in july. all of this translating into a belief in the market and speaking last week with the job's numbers. a belief in a more aggressive fed. certainly pricing in more hiking here 98% seeing september hike. 74% for the fourth hike of the year in december and then we go now march that is a new entrance to our probability chart and now we're at 52% for march that's ahead two months for that first hike in 2019 i'm just showing you july where we're pricing in right now the highest number for the second hike in 2019 is now july at 37% we'll watch that number as we go forward as they perhaps more fully begin to price for 2019. >> you just said it's impossible to know exactly what the

hurricane's impact will be, but we'll ask you anyway >> i think that's fair enough. i think the market has to gain thinking about it, obviously, a devastating storm and no number or analysis i give can ever account for the personal tragedies out there as a result of this. first of all, i want to tell you an announcement from the banking agencies including the fed, the controller of the currency and fdic they're offering regulatory relief in the hurricane zone one thing that they do is they say the reporting requirements and lenders should work with borrowers in the affected communities and don't foreclose. it's common sense and now become because these storms are so often. show you one very quick chart. which i think courtney knows a thing or two about just as an example of the kind of things we do. these are building material sales. now, what is that spike? that spike is harvey we give a lot of this in the data so, this is just elustrative in

the kind of ways that the storm, for lack of a better term, works through the system or through the economic data. big spike up in the wake of the storm and then the fall off. >> you draw the line straight through. >> if you want to see what the average is these things are bad for growth and bad for the economy and they create a spurt of growth along the rebuild and you also have that report this morning from jpmorgan and things like services never rebound you put off the hair cut or doctor's visit and you put that into the future, very rarely go back and redo it >> you don't get two hair cuts at once. >> look at me, i hardly need one at all. new economic data and new headlines on tariffs let's put it all in perspective and context for our investors. with us jack the founding partner and cio and bob is also joining us bob f we can, i want to start with you and walk us through what we saw there just an hour or so ago when the market took a

leg down why? did we know that these $200 billion in tariffs were possibly coming at us >> we knew, but the anticipation was that it ultimately it wouldn't happen. so, we've been saying all month, trade and tariffs are the marginal movers of the market. and every time you see this, every time you get some headline that is negative, market will move down. look at the s&p and what courtney was talking about lost ten points immediately on reports that the president was going ahead with the $2 billion on tariffs so, there are four things that have been moving the markets in the last three or four months. two of them are in important the last couple weeks. first one, of course, tariffs and the second is what is going on with the tech leadership. any time semis or fang move down and social media, and the dollar has been quiet recently and despite what you hear about steve, not disrupted yet

the first two are the ones really moving the market >> jack, we're not too terribly far off of highs to be fair to this market, even though we have this drop even earlier today is this an opportunity to potentially buy the dip or remain cautious here because of the uncertainty of an impact of $200 billion more on tariffs >> i think that the market is certainly fully valued, especially in light of long-term history. i think where bulls will tend to gravitate will be more towards forward p/es and that's because, as you know, earnings are up 25.6% this year and markets up about 10% or so. so, i think investors are somewhat cautious that a lot of these growth trajectories that we are enjoying in 2122 aren't going to extend well into 2019 so, you know, if you believe that this, this growth path can continue, i guess, yeah, equities are not a bad place to

be right now but, my sense is and we got it from steve, too, yeah, we are going to have growth, but it is going to be at a slower rate going into the back half of the year. >> jackie, any way to invest smartly in emerging markets right now? >> you know, i think there is. if you are willing to close your eyes and hold longer term. i don't see anything systemic and everything a we're seeing in the emerging markets is cyclical and all keys off the dollar. the dollar, as we all know, currency is not a secular trend. currencies tend to cycle and the dollar is really leveraged to what the fed is saying right now they're pretty bombastically aggressive they want to raise rates they believe they have the capacity to do it. they think rates are too low i can't disagree with that and as a result of that, the dollar is strong that's going to put a damper on emerging, but i don't think it is going to extinguish over the

next, you know, five years >> the only thing i would add to that, jack, a lot of debate about whether this is a good time to buy. we're down over 20% in the main etf there. so, on an oversold basis, it looks very attractive and certainly compared to the u.s., it looks very attractive here's, i think, the problem if you believe that the u.s. economy is going to continue to be strong in europe and recover a little bit more, then i think you could argue for a mean trade and go by emerging market. if you and some people made this argument to me, arguing that the u.s. might slow down towards the end of the year and into the first quarter, then the u.s. stock market will go down and that will take down emerging markets even more. hard to make the call. i agree with you hard about how you feel about the u.s. economy. >> unfortunately, gentlemen, we'll have to leave it here just for this moment. appreciate you joining us jack and our own bob pisani. coming up, a rare chance to

hear from jeff bezos, the world's richest man sounds off on the president, regulation and what he's going to do with all atat money th is coming up next on "power lunch. the digital divide is splitting this country. we have parents who are trying to get their kids off of too much social media and computers, and then we have parents who would only hope their children have access. middle school is a really key transition point, right. the stakes start changing. students begin to really start thinking about their futures. what i like about verizon's approach is that it's not limited to just giving kids new tools, it's really about empowering educators to teach in different ways, and exposing kids to more active forms of learning. giving technology is not a total solution. teaching technology, now that is.

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whenever they need it. this is our era. this is america's energy era. nextera energy. amazon ceo jeff bezos speaking in washington, d.c. didn't give any clues on which city will be amazon's second headquarters but decision will be made before the end of the year bezos weighed in on a host of other topics, including

president trump's attack on the media. >> i don't feel the need to defend amazon, but, i do, i will say this it is a mistake for any elected official in my opinion, i koedo think this is a very out there opinion to attack media and journalists. i believe that it is an essential component of our democracy. there has never been i was going to say an elected official, but i would say no public figure who has ever liked their headlines >> talked about the increased scrutiny facing some companies >> my view on this is very simple all big institutions of any kind are going to be and should be examined, scrutinized, inspected. governments should be inspected. government institutions. big educational institutions big nonprofits big companies.

they're going to get scrutiny. it's not personal. it's kind of what we as a society want to have happen. >> and you can't talk about amazon without talking about the stock's incredible run it's up almost 70% just this year doubling in the past one year bezos weighed in >> in every all hands meeting, look, when the stock is up 30% in a month, don't feel 30% smarter. because when stock is down, 30% in a month, it's not going to feel so good to feel 30% dumber. never spent any time thinking about the daily stock price, i don't. >> we do we spend a lot of time thinking about the stock price. bezos may not spend time thinking about amazon shares but made him the richest person on the planet he put that into perspective through a different angle of the lens. >> it was fine being the second wealthiest person in the world that actually worked fine. i own 16% of amazon.

and amazon's worth roughly $1 trillion that means that what we have built over 20 years, we have built $840 billion of wealth for other people >> he pays a little bit of attention to the stock price because he knows how much value. >> i think he's aware. >> he announced last night that he and his wife would put $2 billion in charity for helping homeless families and starting preschools for communities in need, too. to put it in perspective $2 billion. but this was a significant effort >> and he has not been a very public philanthropist to my knowledge. thus far >> in fact, most of the time, his wealth is all wrapped up in amazon shares. when he sells it, it is to do spacex or the other things he's doing. fund new origin and go through with those things. not using it for anything else.

>> from what i read is that he thinks that specific requests are maybe not as effective a form of philanthropy as creating jobs and having ways to employ individuals. it's a very interesting sort of revolution of thinking in philanthropy that he's a part of the other interesting i heard there is his discussion about institutions and set aside media. but a lot of institutions in this country have come under a lot of scrutiny, whether it's been universities and athletic departments, the catholic church, government institutions, our intelligence agencies. >> technology and privacy. >> technology companies. it is, it is, this is a moment in time with the likes of which i haven't seen >> he seemed pretty laid back about it but, you have to remember, he is doing this as amazon is under scrutiny, too. opening it up and saying, okay, i got. >> he was not asked about the

working conditions at amazon and the different distribution facilities which has gotten press recently. >> you've been there you've been on the inside. >> i have seen it. impressive facilities and take a lot of power to run both human power and, of course, technological power. impressive working conditions. >> i didn't see that i know i'm a huge beneficiary. all the packages show up at our house. when we come back this morning, or this afternoon on "power lunch" an amazing personal story from the financial crisis a woman who started working at lehman brothers on september 15th 2008. that's the same day that the firm collapsed we'll also get the latest on hurricane florence as the carolinas get drenched with as ow lchwi b1/2 feet of rain "perun" lle right back golf clubs. now you can, with shipsticks.com! no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com

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welcome back to "power lunch" hurricane florence making landfall today soaking the carolinas with rain some areas could get 2 1/2 feet of rain. let's go to meteorologist kaitlkaitl kaitlyn mcgrath. >> towards south carolina, still, a category 1 hurricane

and sustained winds down to 75 miles per hour and dropping torrential rain across north carolina and moving into south carolina national hurricane center bringing it into south carolina tomorrow as a tropical storm that is good news for the wind speed, but that torrential rain will continue and we continue to watch the storm threat and much more on florence, coming up. >> thank you very much. let's get over to suherrera with a news update at this hour. >> good to see you here's what's happening at this hour, everyone the european commission ending the ritual of switching between summer and winter time the transport commissioner said they will leave it up to governments across the alliance to come to an agreement. >> there are also economic benefits behind it it's a joke, but also true that it's hard for them to understand they need to be one hour earlier

or later because for them every day and the time clock is the same >> residents pour immediate to the streets today to demonstrate against the syrian government in defiance of an expected offensive to retake syria's last rebel held providence. the government said idlib has threatened to seize it by force. in genoa, italy, a moment of silence. the bridge gave way in traffic one month ago killing 43 people. shop keepers lowered their shutters as residents stood in silence on the city streets. the investigation is ongoing as to what exactly caused that bridge to collapse you are up to date, that's the news update. i'll send it back to you >> sue, thank you very much. we go now to the bond market where rick santelli tracks the action he's at the cme. >> everyone paying close attention. the intraday chart a touch of 3% and we backed away

as we sit 298 and started chart mid-april and you can see towards the end of april had the first close above 3% and 11 touches on a close of 3% or higher and one would have thought more if you look at year to date chart of the european two year, sure it's at minus 54 basis points but close to the highest yields of the year going all the way back towards february and if we look at the dollar index, not a good week. it's still down about a half a cent on the week however, up over a third of a cent today and did pull it out as we, once again, are approaching that 95 mark this time, though, from the bottom up. becky, back to you >> rick, thank you very much have a great weekend. up next, looking back at the financial crisis as we mark the tenth anniversary of the collapse of lehman brothers. what lessons have we learn elea? and the story of a woman who began a new job that day

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tomorrow marks ten years since the fall of lehman brothers question today is how much safer is the world's financial system and do we need to worry about all sorts of issues like this in the years to come? for those we're going to ask david mason, a former treasury official and currently the ceo of ge financial services and greg who is chief economic commentator with "wall street journal. david, we'll start with you. you were at treasury when all of this was happening you just kind of took some reflections and looked back at what happened at that time >> thanks for having me, becky i think we've come a long way. so, we've reflected at the brookings conference, it was great. and here's what we're thinking we're thinking the banking system is stronger and more stable than it has been in the ten years. we focus on you need to focus on

what matters most. capital liquidity and supervision for banks and i think we're doing much better than we were in the past and a better position than we were ten years ago for sure >> greg, you have some concerns even though you think you're better off than we were and potential place you see bubbles. where are we >> i would agree with what david is saying. the banking system is a lot safer and a lot of products that got into trouble ten years ago, they're gone you can't get those any longer you can look internationally a lot of the international channels spread to europe and caused the euro crisis those are significantly less, they're much smaller than they were the type of crisis we saw ten years ago less likely. my concern is that financial tells us that risk never disappears it goes away for a while, but then comes back in some sort of different form let me give you one quick example. the regulators worrying about three years ago that banks were

lending too much to companies. a lot of that is primes equity businesses and so on do we really know whether the risk has been reduced or has it just changed form and we just can't keep an eye on it as close as before. i do worry that some of the regulations that were intended to keep an eye on the banking system are carved back by the current administration >> david, that kind of plays into your final point in terms of lessons learned, your point is be prepared for a crisis. if the crisis is potentially coming from another direction, how prepared are we? >> don't spend a lot of time thinking about predicting where the next crisis will come. the reality is there will be a crisis at some point if you focus on the areas that matter which is capital liquidity is a great place to focus on the supervisory side and the most important thing to think about financial crisis is causing them and a lack of confidence and a panic that is the crux for how these

institutions work. i think the reality is, there will be another crisis at some point trying to predict where it comes from is difficult. two things we need we need people who are courageous and willing to make unpopular decisions and need the regulatory rules i think we've come a long way in terms of the latter. how lucky we were back ten years ago with chairman bernanke at the helm sometimes making unpopular decisions. >> shift gears and ask about some lose of the day watch the markets give back some gains after it was announced or after a report came out suggesting that the trump administration is going to move forward in additional $200 billion in tariffs against china even though we are seeing these talks policiy take place in the meantime what does it mean? how concerned should we be markets not seeing a huge

concern? >> surprised they would go on the $200 million projects there. i think the bigger risk is that the president has talked about giving it another $257 billion and at least as far as i can see, come to a resolution of this matter. since we're talking about the tenth anniversary of lehman, as a risk out there if we get into another financial crisis you know, it's often forgotten how important international cooperation is in these events did a lot of lending into foreign banks to help them over these problems with that type of cooperation be present when you have all these serious frictions between the united states and other partners that is something we should be worried about it >> gentlemen, want to thank you both for your time >> thanks a lot. >> thank you. becky, thank you very much our next guest started at lehman brothers the day, the day it

declared bankruptcy. former employee at lehman brothers who went on and found the digital banking start up bank mobile. >> thank you for having me >> take us back to that morning. >> it was craziness. i still remember we had six weeks of training and the first day on the job was that september 15th -- >> that monday >> that monday and contacted hr and i was like, what should we do >> because they had filed the day before. >> they had filed the day before and it was a very eerie response business as usual, please come in and i do remember as people were walking out with those boxes, you know, we were really instructed to continue and start our first day and i went in that day and then, you know, i actually landed there for two more years after that. >> so there really was business. >> there was business. there was truth in what she said i was part of the investment on the hedge fund.

>> talk about lessons to be learned from your first job. i imagine that had to inform the way not only the way you look at your career, but potentially you look at the american financial system. >> 100%. i think starting my career that way really opened my eyes to the fragility of the american financial system and how it creates trickle effects and how many people lost their live liveliho livelihood, et cetera. that is creating the most affordable, acceptable, banking experience for our customers and really helping them with education to help them create the most savvy >> did you get paid and did the checks clear >> yeah. so, it was interesting i was direct depositing and i got my first paycheck and it wasn't going straight into my bank account and i had an actual, physical check and i forgot to deposit it and it was

too late and they said, sorae you're now part of the lehman estate and you have to go through this process and maybe you'll get your $2,000 at the point. >> it wasn't worth going through that elongated process >> we'll go to talk to the lawyers for you. >> a lot of mobile banking apps out there. what makes yours special and why was it inspired out of the crisis specifically? does this help people avoid situations that you or your peers were in early in your careers? >> for sure. americans even today a third of them are living paycheck to paycheck and banks are charging these same persons in the overdraft. so, it is really about focusing on the low, middle income americans and in the affordable, accessible way, number one so, today being a completely digital bank that focuses on

technau techna technology, we can provide a free banking smeerexperience it's about managing their money better and being able to stash them away and give the education about how do you create the best financial decisions, et cetera a strong component on that people are prepared for the crisis situations and protected as much as they can. >> you had a rough first day of work and you made lemonade out of lehman. >> that's a good one i'm impressed. >> just thought of it right there. co-founder bank mobile and a former employee of lehman brothers our documentary, crisis on wall street airs monday night at 7:00 p.m. eastern time it's very good do not miss it. coming up, the market turns lower on reports that the president wants to push ahead with tariffs on china. more on the trade fallout. plus, a big summer at the box office, the movie theater still facing a lot of competition from other forms of

entertainment like cnbc right here, wild day every day here. we'll talk with cinemark on how to keep up with that momentum. "power lunch" will be right back

a year ago some said movie

theaters were dying. but now the silver screen could be in a a golden era today silver lake announcing a $600 million investment in amc theaters coming off the black buster summer for the box office 14% year over year and raking in more than $4 billion according to come score. but will they keep the you viewers coming in? the ceo of cinemark is here with us thanks for being here. >> thanks. >> a really strong summer. had good movie movies, the new investment in amc. i know 80s competitors but gives us signs that maybe people are going to the movies. but is it a blip we got next flicks at home there are other options. >> great to be here, thank you it was a great summer on the 14% is accurate. actually 21% if you added in the one week of avengers as well this was a gangbuster summer and

year year to date the box office is up 9.5% we expect the full year to be up and as i look forward to '19 i've been in this business 30 plus years most at disney and last year the at cinemark. i don't think i've seen a line uplike this year. >> do you think it's because of lousy ofrpgs before. >> content drives the box office but cinemark has been doing all kinds of things. we have over 50% of let theaters are luxury loungers. more than half of the theaters are andreaed food. you can get wine now we made the experience better. you add to it the content that's coming that's driving the box office right now. >> tickets for movies are not inexpensive if you take a family of four or a family of six and the ticket prices as they get higher then that certainly pushes up the sales too. i mean are you getting any pushback from consumers saying i pay $12.99 a month for netflix and i can invite the town and watch that. >> we are could gwhich are woret

you can go to the cinemas on tuesday for discounted amounts we started a subscription program the called movie club can you go 8.95 any time any day friday night, saturday night made it simple if you don't use the ticket credit it rolls to the next. you never -- you never lose the before of it movie club has been extremely successful for us. >> what is this void project that you've got. >> void falls into the area of innovation it's our flabship theater in dallas, texas, we are starting a virtual reality -- they like to call it hyperreality experience with a "star wars" experience where the four of us kog and would be team members untethered and go through a wonderful just virtual reality experience, moving into the "star wars" world and universe. >> before you get to the movie. >> you could before the movie, after the movie. we open the first one a week from food in dallas, texas.

>> it's not part of the movie viewing experience. >> no. >> it's per se, it's not like -- >> no. >> some theaters you go in in and the chairs vibrate and when the snowfall and the mist comes down and feel a vision. >> that's walk around and you're a state trooper o storm trooper. the four are a team. and we can see each other and you're living the adventure. what's follow with the void is going to be other software as well. >> what's the provides for that? >> charge you $30. >> $30 per person to do that experience. >> yes. >> how long does it last. >> by the time you walk in with the preshow and load you up about a 30-minute experience. >> very cool. >> we try to innovate that way. >> how many of the locations will you have. >> we start with just one. start with dallas, see how it works. they're not cheap to put it in. >> i imagine. >> but we are excited. >> thank you for being here.

>> glad to be here. >> the cinemark ceo. and tune into interviews with amc ceo. back to the two biggest stories of the day hurricane florence pounding the carolinas. this is leaf rain, flooding beginning in many areas, lots of places without power and second, paul manafort cooperating now with the mueller investigation as part of his guilty plea. ngl the that and much more comi in the second hour of power. y about people and while we make more e-commerce deliveries to homes than anyone else in the country, we never forget... that your business is our business the united states postal service. priority: you kayak compares hundreds of travel and airline sites so you can be confident you're getting the right flight at the best price. cheers! kayak. search one and done.

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. welcome to the second hour of poufr lunch i'm becky quick with tyler mathis been and courtney reagan. paul manafort pleading guilty and says that he will cooperate with the mueller investigation in the meantime reports say the president wants to move forward with tafrps on $200 billion in chinese goods. stocks falling on that headline. also hurricane florence crashing ashore, packing high winds and bringing catastrophic storm surges. >> let's get a check on the markets. all three doses in the red at this point the dow had been up 65 points before reports of tariffs going into effect in china the dow s&p and nasdaq still on

track to end higher. the the telecom is the lagrd as the 10-year yield rise sees. energy financials leading within the dow disney and cater pillar the laggards united technology and boeing leaders. under armour among the worst s&p performers and amd shares rally rally following the upgrade. >> mean hurricane florence battering the carolinas, now a category 1 storm katlyn mcgrath is in the weather center here. contessa brewer in myrtle beach, south carolina and jackie deangelis is in carolina beach and that's where we begin. jackie. >> reporter: guys, we're about 7 hours after hurricane florence made landfall in north carolina. and you can see the things are gettingpretty ugly here. that's really the only way i can

put it at this point the winds are probably at their peak in terms of what we witnessed and observed all day you can just tell by how far the trees are bending. on the water you can see the wave action on the ocean swallowing up the beach. high tide is in full effect. and the concern of course has been rain accumulation and flooding and those two are going to be the most impactful when it comes to hurricane florence. storm surge, rain accumulation, whatever it is, has penetrated the streets around our hotel we have observed it at least three or four feet and we are told not that far off it's steeper than that in terms of flooding so when the governor of north carolina said everybody is going to be impacted by this he was definitely right in that assessment and leading up to all of the preparations, leading up to the eye of the storm, people were told to evacuate, to move into

shelter, hopefully they did. the first responders are trying to do what they can. but when this weather like this their efforts are limited guys >> that's our jackie deangelis standing by. we will check in please be careful, right in the heart of the things right now np in the meantime contessa brewer is in myrtle beach and has the update from what's happening there. contessa >> reporter: yeah, becky be the conditions are doctorating the waves are getting bigger the wind getting stronger. and the rain is incestant. in fact we are looking at 55,000 people in this county, horry county, alone that have no power at this point. the fire department has announced that it is going to stop going out to rescues, that the conditions have reached a point where they don't feel it's safe to go out checking on people we do know that there are among the power outages at least one evacuation center nearby that has lost power so 450 people there taking

shelter have no power. that was one of the warnings from the emergency management officials that they would be able to shelter you and keep you safe but it may not be comfortable in there you know, we are here along the ocean. they are depending on the do uns to keep the tourist businesses safe $21 billion is the economic impact of tourism in the state of south carolina. one ut off ten jobs. it's superimportant for the businesses along let grand strand get back up and running as soon as possible. but in the meantime we are not expecting the center of the storm until 8:00 p.m. tonight, a long, slow-moving storm, with hours and hours of hurricane-force winds and rain tomorrow tropical force wind. sunday, massive, severe weather and rain storms. we are rivers cresting tuesday, guys >> contessa, you are talking about the dunes protecting businesses how high are they if you are looking at storm surges of 9 to

13 feet. >> they predict if it gets to 13 feet it would breach these and breach the businesses. though most of the businesses are built high so that they can accommodate some storm surge here is the good news. in myrtle beach area though under a storm surge warning the prediction is somewhere in the neighborhood of 2 feet of storm surge. we have seen high tide come and go and we haven't seen that it's staying down where you see the -- the water level right now. >> that's great news contessa. i hope that stays. and again be careful we'll check in with contessa later today. contessa brewer. >> thank you. now let's go ahead and check in wvit meteorologist katlyn mcgrath on what we expect from here katlyn, we sort of know what's happening right now. what's to come >> courtney the good news is florence to going to continue to weaken moving inland and toward south carolina as we head through the evening tonight. that's good news in terms of the wind speed we are talking about a lot of rain to come

right now radar showing that eye wall slowly moving into south carolina the outer bands of convex dumping rain through portions north carolina and bringing in the hurricane force winds and when it's said and done we are talking about feet of rain check it out, the bull's-eye, 30 plus inches of rain wrightsville beach wrp hurricane florence made landfall this morning closing in on 20 inches of rain the further inland you get, the less the rainfall totals but we are talking about a catastrophic amount of rain to fall over the next couple days and of course the storm surge threat as we head threw the weekend as well. while this primarily is a water event we are talking about life threatening flooding we can't ignore the wind we have some impressive wind gusts, 106-mile-per-hour that was the peak gust at cape lookout, wilmington, 105-mile-per-hour gusts. that's the strongest wind they have seen in 60 years since

hurricane. and beaufort and davis also. the wind dies down through the next few days but the rain sticks around. let's talk through the time line what we expect into next week. right now the rain and wind continues across the carolinas later tonight we see the hurricane forepersons winds as well and kinning to keep an eye on the storm zblurj katlyn, let me ask you a question. a couple of days this was a category 3 plus, almost 4 with winds of 145 miles an hour and so forth when you see the winds now are below 100 miles an hour, it is very easy for us sitting here in the warmth and the dryness of our studio to say this storm isn't what they expected tell me why i'm wrong. >> well the story all along with florence has been that the category does not matter it is the size of the storm and where that energy is this is an enormous storm. to put it in perspective harvey was 20 oh miles wide in diameter florence is over 600 miles wide.

this is larger impact storm than the carolinas typically see. and the wind speed is lower but the rain flooding, the storm surge that makes is it a dangerous storm. >> the scale and the water katlyn, thanks. when the waters do recede lots of home owners and business owners along the carolina coast will be looking at their flood insurance policies to see when or if they can rebuild joining us right now is fema deputy associate administrator david more stead, the chief executive of national flood insurance program. and thank you for being with us eyed. >> good to be with you thank you. >> we are watching the storm hitting situations we know there will be flooding, we know severe in some areas how many people, businesses in these areas have flood insurance. >> well not near enough. we find after every major event like this that not enough people have the coverage that is really the first line of defense. so we are working hard to close

that gap and at the national flood insurance program we set a moon shot aspiration of doubling the number of properties coveredly flood insurance by 2022 in the koefl the areas it will be higher penetration, maybe one out of three people will have flood coverage they need but outside the high risk area it gets down to less than 10% pretty quickly. >> if you are one of the home owners one of the business owners and get back into the situation where you are allowed to go back, what should you do first? what precautions do they need to take what record keeping do they need to do. >> right, well first of all we want people safe and certainly continue to follow the directions of local officials on when it's safe to get back in and then when you get to the property make sure that you approach the property in a safe manner so you don't compound the circumstances that you -- that you have and there is still -- there is plen of time we're going to be ready. our insurance company partners are ready to serve our policy

holders throughout the affected area but the first thing you need to do is contact your insurance company or your insurance agent, make sure they know how to contact you if you're not able to be in your home, what's the best way to reach you. next, it's to make sure you have your policy information. basic information, the address, the policy number, that type of information. and then when it's safe begin to take pictures or videos to document what the damage is so that when the insurance company reaches out to a policy holder and you receive that first call from an adjuster you can begin to let them know the magnitude of the damages so they can potentially provide you with some immediate assistance, an advance payment on the policy, so you can start with -- have the dollars to start with those early expenses that you're going to need before you get into the long-term rebuilding. >> what needs to happen to the national flood insurance program to make sure that it can

continue to pay out claims and that it's well-funded? >> well we current have enough funds on hand, it looks like, at this point even though it's very early in the game, to be able to handle the claims that will come in from -- from this storm but we need to continue to work on making sure the rates are adequate, that they reflect the risk, that we're able to accumulate a reserve fund, that we continue as we have and buy reinsurance to provide some additional protection before we have to look to the taxpayer for the catastrophic exposure that goes along with a single peril risk of this nature, that's concentrated in scope. so we know when we have a flood event that it's going to be concentrated and that's what it makes it difficult from an insurance perspective to really handle. >> david, thank you for your time today. >> thank you, becky. >> all right and we are following the breaking news from washington former trump campaign chairman

paul manafort pleads guilty to two criminal charges and prosecutors say he will cooperate with the special counsel investigation. joining us now on the cnbc news line is matthew miller, former justice department spokesman and also an ms nbc justice analyst good to have you with us, matthew. i have the plea agreement in my hands. i have not had a chance to read it all but it's a fairly wide and far-reaching agreement where he is agreeing not to appeal any of his other convictions, not to appeal on any of matters and can be asked to testify without counsel in any matter the government deems he might have relevant knowledge. is that how you see it. >> that's exactly right. you have honed in on the most important part, which is that he is agreeing to cooperate not just on the crimes to which he pleaded guilty today and the crimes to which he was convicted in virginia, so not just the question of money laundering and

all the work years ago in ukraine. but he is agreeing to cooperate on anything else the government is interested in so if bob mueller wants to ask him about the meeting in trump tower or the changes to the republican party platform to make it more friendly to russia, he has to answer the questions truthfully anne has to agree to testify either in a grand jury or potentially at a trial down the road. >> and to be clear here, as the white house, mr. giuliani and sarah huckabee sanders have said, these pleas have nothing to do with the white house they pre-date his time of service to the trump campaign, correct in. >> that's exactly right. i think there is a question about the president's judgment when you look at his campaign manager now joining his personal attorney and his national security adviser in pleading guilty but there is nothing in what paul manafort has pled guilty today that directly implicates the president in any crimes. these are all activities that predated his service with the president. but i think the thing that i

would be worried about in the white house is if paul manafort knows about any criminality, not just on behalf of the president, but say on before of donald trump jr. or jashd kushner or roger stone who we know the special counsel is looking at. he is now compelled to testify truthfully about any of those individuals. >> matthew, what's your suspicion on this? does he know anything about anything else? or is this a situation where he is pleads, get out of the way? his lawyers have been cooperating with president trump's lawyers to this point. do you think that's still the case i doubt they're still participating. they had a joint defense agreement. something common in these types of cases i would suspect that his interests are probably adverse to the president now, and that they with drew from the joint defense agreement last night we will wait for confirmation of that but i think going forward if you want to look at where the peshl counsel is going next we don't have any way of know whag paul manafort knows and what he is able to offer. but i will tell you before entering into the cooperation

agreement bob mueller and his team would have found out the answers to the questions they don't enter into the agreement without holding what's called a prover session first. where manafort would have had to sit down and answer all the questions before getting any kind of agreement before mueller's team agreed to any sort of reduction in sentencing. he hasn't testified publicly or to a grand jury yet most likely. they know the answers to the questions. >> but the fisher has gotten at least an appetizer portion of what he knows. sufficiently tasty for the special prosecutor, the justice department to sign up for this -- for this agreement let me ask you one other thing how could -- mr. trump -- the president has said some rather sympathetic things about mr. manafort how could a pardon play in all of this? and -- and scramble the agreement that manafort has reached today to cooperate >> you know, if the president was looking to prevent paul manafort from cooperating or

testifying against him through the use of a pardon? that ship has sailed now with because of this proffer session. it's not just manafort's agreement to cooperate in the future that's important. it's the fact that he has already told the prosecutors everything that he knows and he has answered the question they would have asked. i guarantee they would have asked the questions about trump tower meeting other things potentially involving the president. so if the president were to pardon him now and, you know, allow him to walk free tomorrow, bob mueller already knows the answers to the questions and he could still compel him to testify with a grand jury subpoena he could compel him to testify against at trial and if manafort were to come into the grand jury and give answers in contradiction to what he already told mueller's prosecutors under oath he could be prosecuted under perjury. so. >> he be pardoned for that too. >> he could be pardoned for that but at some point you get to the place where if the president is going to issue repeat pardons down the rooted and pardon someone three or four times for crimes he commits to try to

obstruct justice that would be the point where there would be grave questions in front of impress. >> matthew miller thank you very much we appreciate insight and explanations thaens again. >> thank you. coming up mad money's jim cramer says buying into emerging markets is how people lose big money. is he right? we look closer. plus tilray dropping on news thatening working in marijuana industrycould face a lifetime ban from the u.s we have more on that story ahead. and managing a crisis, the ceo of one of america's largest supermarket companies on what they are doing to weather the hurricane. power lunch is back in two minutes. alerts -- wouldn't you like one from the market

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already. well back to "power lunch" everybody. emerging markets seeing a bounce, up more than one% for the week on pace for the first positive week in three in asia japanese and south korean markets saw positive weeks while the shanghai is on pace for the third straight negative week. so what does a rebound in foreign stocks mean for our markets? let's bring in larry glaser, and tim seymour. at may flour. seymour asset management ciop let's start you with tim what do you see in the bounce since we last talked last friday in the emerging markets? and what -- what is the implication for the u.s. market if any >> well, the bounce to me

certainly on a technical level, em continues to make lower lows. we're in a channel i'm not encouraged by the bounce until we break out kind of above the -- the 100 day average the 50 has been the place it's been getting smacked down. but, look, the couple things for investors about investing in em important right now, em can never outperform in an environment where there is a growth scare it can't perform in an environment where there is inflation score. i'm not telling you there is a growth scare here. but the nature of the way the trade tariffs play out -- and by the way, this is more of i think of secular and strategic trade war. it's not going to be about manufacturing jobs it's about control of the internet and data in the 21st century. we're not letting up on that and if you don't get china right, you don't get em right. so i don't think it's an exciting time to be putting money to work, even though you make the most money in emerging markets when things go from terrible to kind of bad. and i don't think things are just terrible yet. >> larry, let me turn to you and

your thoughts on the u.s. market you say that you need to make a distinction between whether you are a real bull or a fake bull and so i guess my question is, is this bull market a real bull static-99? or a fake bull market? >> well, look, there is no question that the traditional bull market is very different from what we see today this is my grandfather's bull market because in a real bull market you see broad participation in the market in a real bull market you want to see a steep yield curve in a real bull you don't want to see ten stocks leading the market average just as tim mentioned, in a real bull market you reneson we're in a global economy. you don't want to see the divergence you have real and fake bulls you can bullish on the u.s. economy but concerned about the major market anchts in the u.s., the composition and valuation. that's where the opportunities lie here so i think when we look at who is a real bull, if you're a real

bull, you'd be concerned about what's going on in china here and will go for opportunities. if you are a fake bull you'd be hiding the s&p and nasdaq whistling oh outside the graveyard. if you a real bull you recognize the u.s. is 25% of global gdp. what happens outside the u.s. does affect s&p earnings >> it slunds like you think this market has a lot of bull surrounding it. >> i think there is -- a lot of people need to go home and look in the mirror and ask that question, am i real bull or fake bull we love the fake bulls because they leave the rest of the global economy for opportunities. we see blood on the streets for emerging markets when you see outside the major market areas small caps, mid-caption lots of opportunity in things like financials, if it's a real economy, those are going to shine through in valuations will be compelling. >> you have gotten more words into 120 seconds than any human.

>> i've never seen that. >> that was a tour deforce. >> what a way to enthe week. >> noble there. >> as a mean reversion guy, i don't like seeing the rest of the world underperform so much we talked about that last week tyler. bottom line i think em underperforms if the u.s. finally underperforms. >> all right, gentlemen we leave it there larry glaser, may flou flower pops tim seymour. >> that is saying something to say we give him props for talking fast we know a lot of people who talk fast after taking a breather amd up 8% today one of the best performing up 220% this year so far whheti ine os xtn etr it continues who would have thought,

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craig johnson with piper jaffray. gina craig on the chart certainly has momentum up. are you chase going from here. >> i'm not if you look at the chart i brought up i brought up a long-term chart to bring it into perspective because history may not repeat but it does tend to rhyme. and you look back at the early -- late 199up 500% before the stock reset in the early 2000s up 12% the stock reset hard right now up over 1800% off the lows and these kind of parabollic advances really only end one way poorly and from my perspective i'm not chasing that stock i'll wait for it to come to me. >> a lot of credit, gina goes to the ceo. jp morgan came out with positive commentary how it's managed to grow market share. do you like it. >> i think the company is a great company. if you look at market share they are taking they take market share away from

intel in, you know, cpu, in pcs. but also really taking market share in high-end notebooks. at the end of the day i think valuation is problematic 60 times earnings is really -- i mean this is like a canary in the coal mine say are basically saying the tech sector basically in bubble territory. because this is pretty pricey. i think it's really hard to get rewarded later on at this price. >> all right both of you are staying away from the high priced stock thank you. gina and craig. for more trading nation go to the website or follow us on twitter back to you tyler. >> thanks. let's go to sue for the news yupt. >> hello ty. here what's happening this hour. paul manafort pleading guilty to two federal counts and agreeing to cooperate fully with special counsel robert mueller's team. he will forfeit multiple properties and bank accounts but his lawyer says the family will remain protected in the

deal >> update for mr. manafort, he has accepted responsibility. and he wanted to make sure that his family was able to remain safe and live a good life. he has accepted responsibility, and this is for conduct that dates back many years. and everybody should remember that. >> investigators working to pinpoint the cause of a series of huge natural gas explosions that killed one and injured at least 25 others. authorities say an estimated 8,000 people were dislodged from homes in three towns north of boston rocked by the disaster. and amazon's ceo jeff bezos says the company will make a decision before the end of the year on where it's second headquarters will be located he made the comment during a speech in washington last night. insiders are speculating northern virginia to be that site we will see. that's the news update this

hour court courtney back to you. >> by the end of the year we will see thanks sue. >> how one of the largest supermarket companies in the u.s. is dealing with hurricane florence from the decision to close stores to the logistics behind it. the ceo of southeastern grocers joins us next. . >> announcer: and now the latest from trading nation.cnbc.com and a word from the sponsor. >> in a loose trade avoid letting emotions get the best of you tovi often traders want to add to a lose attention position but experienced traders will say your first loss is the best loss in other words take a small loss and move on before it becomes too big.

. let's take a look at the markets right now. we are at session lows but still in the red the dow, nasdaq, s&p, all three negative on the session at least at this point. dow jones just down about 30 points snch, just marginally lower. and the nasdaq composite off by about 7 points some calls on the street moving stocks as adobe steeple ump trumps the target and planning a 21% jump from here. costco down grades to market perform on valuation

and credit soous because to buy microen. >> thank you very much as becky and i sit here chatting. hurricane florence continues to hit the carolinas, home depot preparing for response and sema mody is standing by in the home depot command center in atlanta. >> and this emergency command center was activated on monday here is how it works nearly 30 oh associates from supply chain, merchandising, even have their own meteorologists tracking the storm. the goal is to get as much inventory out to the affect the regions and stores they have on the coastline. we are now entering the main hurricane camp, the main hurricane room inside the command center joined by pete caple from home depot what's in the most demand right now. >> what's been in demand right now is generators that's starting to transition as the storm goes through generators will be in strong dman then water removal, debris

removal wet dry rags be chain shaws be tools, trash bags gloves. >> thank you. >> thank you. >> the goal what they tried to avoid is residents returning to home after being evacuated, not able to start the repair and rebuild efforts. that's why they need to make sure the local stories, the home depots are stocked and able to reopen as soon as the hurricane passes. >> seema, i know sometimes the competitors will send employees from other areas to the affected areas. do they have plan in place to do that and how many people they think they may need to help out in the stores. >> yeah, this is an extensive operation. they took a lot of lessons from last year with hurricane mary and irma to try to see how they can dispatch resources across the nation and bring them in as soon as the hurricane passes so they can open the stores right away unclear on how many resources will be used

but right now home depot alone has 3,000 employees across the coastline where the hurricane will hit >> ends up being a very, very busy time for these home improvement retailers. thanks so much seema. let's check in how businesses cope with hurricane florence the next guest runs of the largest supermarket companies in the u.s. with more than 170 stores in the carolinas and fwa. and the news line is anthony hucker president and ceo of southeastern grocers anthony, i appreciate you joining us here today. the storm as you've been following along on your own as well as what we have heard from reporters in place is certainly hitting the carolinas right now. what did you do to prepare your storeses for the incoming storm in and what's the situation right now? >> thanks a lot, courtney, for having me. we have some very rich data analytics in terms of preparing what we know is coming in. obviously we are -- we have a very resilient and experienced

team of associates that have gone through matthew, maria, harvey, irma in the last couple of years so we know how to prepare our stores and obviously at 7:15 when had had landfall this morning we knew what to do. we always take safety first. and obviously our thoughts are with all of our associates and our customers and families in the carolinas. but we use a three tiered approach, which is plan, protect and then restore so we are right in the protection mode right now. >> typically how long does it take after the storm passes to get trucks with fresh produce and fresh goods back into the stores i mean if the roads are flooded and you have other -- literal obstacles in the way, how do you restock to make sure food -- obviously it's so basic ---en a everyone needs it -- is there on time >> yeah, courtney, we source very locally

so we have immediate response from the local farmers to be able to actually restock shelves immediately. so very, very quick. we strike that balance between people -- our associate are the greatest asset and therefore protecting our associates. but we also believe that our customers need to be able to count on us, especially in times of need like this. so it's a balance between protecting associates and knowing that our associates and customers with count on us but getting local produce on the shelf really really quickly. >> anthony, we have spoken with some people who have concerns about the crops there locally. if this is an issue where you are talking about expended flood waters that really make their way inland as well that that could have a huge impact on many of the the crops the carolinas are famous for do you have backup plans if the crops aren't available. >> yes, absolutely what's different from irma last year is that actually this is --

has more concern regarding the flooding it's actually a slower storm by speed. but the fact that it's actually slower actually means there is more rainfall. so we'll back up within our neighboring states, whether it's florida, louisiana or maybe to the west coast to california and so we have backup planning both inside the country and outside the country. >> so, anthony, when a purn comes into the store before a storm hits, what do they walk out with what are the three things they buy. >> yeah, it's really interesting, tyler when we do our data analytics and watch what our customers actually buy, then there is the obvious products, like bread, water. but then what's also interesting is that we get quite a large pull on other products such as batteries, candles and post we get the 13 tier from

plan, protect, to restore. we can provide vaccinations. we have a world kass pharmacy team we know which products on literally an item by item basis the customers look for we tell them those new to the area we say these are the top ten items you need >> um-hum. yeah, once i did a documentary on a supermarkets and i asked a similar question and the response was, milk, bread, and toilet paper. which was the outliar to me. >> you know the other one tyler. >> beer. >> probably not as surprising but alcohol. >> alcohol process yeah. >> courtney, yes. >> we knew. >> you knew that really fast, court. >> i o i've been through a hurricane or two. >> anthony thank you very much. >> you're welcome thanks for having me. >> you think hurricane florence is big check out the supertyphoon making landfall in the philippines in the past hour more than 5 million people are in the path of this monster

storm. get -- it's packing powerful winds equivalent to a category 5 atlantic hurricane and it is hitting the philippines. >> look at that. >> the building are no where near as stable obviously as -- as those in the united states. but my goodness gracious. >> the size of the storms on the satellite images is impressive. >> and the visual from space, too. >> the space pictures are incredible when we come back real estate at risk, a look at potential losses as hurricane florence beats union the carolinas, next here on "power lunch.

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welcome back to "power lunch" everybody and check out shares of canadian tilray they are shopper sharply lower after reports that canadian working in the marijuana industry may no longer be welcome in the united states adidi roy is live in the san francisco with the latest. watching this go up in smoke what happened. >> a potential buzz kill for the

high-flying but still budding canadian cannabis industry a u.s. customs and border protection official telling me that under longstanding u.s. federal laws, any canadian who works or invests in the cannabis industry or is even using marijuana in the past could be turned away at the border. and may even risk a lifetime ban on travel to the u.s customs and border protection says this would even apply to canadian marijuana companies on the u.s. stock exchanges and not even involved in any cannabis business in the u.s border protection officials say that each inspection, though, is different. and officers do have discretion. todd owen with the u.s. customs border protection says the ofrtsz o officers are not asking everyone whether they used marijuana. but if other questions lead there or if there is a smell coming from the car, they might ask. officials declined to speculate how often the issue occurs but one employee says they have traveled back and forth across

the border without issue even after disclosing during questioning they work in the industry it's interesting to see how it plays out. >> what happens if you justs cross the border from california or california? it's legal in some states here. >> that's what they say. for instance if you cross from canada to washingtonstate wher it's legal, they say that, no, it's still -- it's -- you could face being sent back to canada as a result of that. >> should we read this -- if this comes from the border control, should we read this as the administration taking a harder line and potentially more problems coming for states that legalized it here in the united states. >> yeah, that's a great question i think right now cbp officials say this has been the longstanding law for a long time and there is just trying to highlight given the impending canadian legalization coming up october 17th they plan on doing social media around it to insane increase awareness of the law that has been in effect for a long time and you know still remains on our side of the border >> already

adidi, thank you >> really interesting. from pot to pizza, dominos opening the largest supply chain facility in the world right in the backyard in edison, nuenke kate rogers is there with more. hi, kate. >> reporter: that's right. this is the largest in the world. they have 19 of them across the country. the company is planning to hire 150 people to work here and open up about 8,000 stores across the country over the next decade to support the growing demand here in the united states i got to sit down with dominos new ceo rich allison exclusive this morning and ask about a wide range of topic but we had to talk about the legal battle at papa johns. here is what he said. >> we have been offering great value to consumers for years now. we've been on the same $5.99 price point about nine years for us it's not matter of going back to value. we've been on value the entire time and i think what we see over at our competitors just reminds us

that we have to stay 100% focused on customers and franchisees. if we do that i think we'll be successful >> steve richie is a fellow ceo do you haveny advice to offer him. >> just what i just said as much as he can stay focused on franchisees and customers all the better >> reporter: the company also says they are not expect expecting or projecting any football-related weakness in revenue this quarter they are not the official responseser of the nfl that's piz aire hut but dominos says they will advertise through the season and they can expect commerce to see a lot of skmergss. >> kate, watch out for falling dough. >> i'll try to catch it. >> good. you have the good head gear. you're protected coming up hurricane florence wreaking havoc love that phrase, in the carolinas, and a lot of real estate in the path of destruction. we will look at potential dangers to real estate next.

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she has moreon this. diana a lot of big risks here. >> these are preliminary estimates. 250,000 insured homes with construction value of between 3 and $5 billion are ate risk. wilmington is the worst followed by myrtle beach. for perspective though irma caused upwards of $60 billion worth of property damage on the commercial side more than 6,000 commercial properties lined the path retail rates own the most. national retail properties have significant exposure american homes for rent has nearly 20% of homes in effected areas. invitation homes from blackstone 6.1% and front yard residential

about 8% of the portfolio. flooding from excessive rain over the weekend will likely increase losses. it's all on cnbc.com >> we speak with national flood insurance plan earlier today one of the big concerns is something like only 35% of homes and businesses actually only have flood insurance what happens to those? >> to a lot of people it will mean big losses. as we saw you did see mortgage del dely delen again sis. it will be a rough ride for those that didn't have insurance. >> all right thank you very much. >>wh wrerne llal> ene tu wwi cl for the check. let's begin. yes or no? do you want the same tools and seamless experience across web and tablet?

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wilmington north carolina police department is confirms the first two fatalities the fatalities are the first two directly relate today the hurricane. the police department says that a woman and a baby were killed when a tree fell on their house during the hurricane we still have the hurricane

churning its way through as you know we do unfortunately according to authorities expect a few more fatalities. we are sad to report the first two. back to you. >> thank you very much the news nobody wants to hear. we have been following this so closely and trying to figure out what it means for businesses something like 40% of small businesses that go tlhrough a situation like this end up failing. it is a rough situation. they don't have the ability to get employees back afterwards. >> and they can't get that revenue back if you're a restaurant you can't get those back >> like the services >> it was the point steve was making earlier it puts them behind a real eight ball >> it does they announced they are closing henry bendle they are closing it. it is a restructuring.

famous for looking at the brands that really matter and spinning off the ones that don't. at one time l lands owned express and abercrombie. these were all things that all got spun off down the road >> they will be open through the holidays you one last chance but a lot of people are a little bummed out about that one >> it has been fun i will take a little walk now. chris is going to follow me. i want to weigh the last couple of days on a cnbc event. i came back here to something that really caught me by surprise this is where i sit. this is my 21st anniversary at cnbc how about that [ cheers and applause >> i couldn't work with better people i have honestly loved every minute of it we love what we do here.

i'll be breaking out some of the things later we have that and more here we have a nice cucumber vodka and a glass of wine. you're all welcomed to come over that is power lunch far friday thanks for watching. closing bell starts right now [ cheers and applause >> congratulations >> i have never got one of those balloons >> maybe you have to get past 0 20 of. >> welcome stocks giving back some early gains after the reports circulated that president trump does want to g