those are the comments we've been waiting for from the president regarding trade with china. china taking advantage of the u.s. for some time said president trump there can't let that happen. also, talked about the prospects for more tariffs if there is significant chinese retaliation. the president talks about the other $267 billion don't want to do it, but will if we have to, said the president we have to do something, and he said that china may make a deal at some point. those are the headlines that we are expecting from the president regarding trade, as those tariffs go into effect today also have the stock market up plus 150 we'll go around the horn and do final trades jenny, you're up first >> i'm still long all brands i think 8% dividend yield and a sentiment shift where maybe the hate fest subsides bank of america upgraded it this morning. >> appreciate you being here john >> dana, dan, dana >> goldman sachs, if you believe -- gotten beaten p up. >> nice having you here as well. >> we don't talk about this very often, alaska airlines is

silently breaking out here >> lastly, as northrop drummond moves higher i'm going higher. >> let's go to "power lunch. >> let's do that indeed. scott, thank you very much welcome, everybody, to power lunch. i'm tyler matheson welcome, folks glad to have you with us the trade war kicking off to a whole new level. that was president trump just speaking moments ago you probably saw it. about the escalating trade spat with china saying china cannot keep taking advantage of the united states eamon has the latest from the white house. >> you heard it directly from the president, and that matches what you see behind the scenes when you talk to officials here at the white house not a whole lot of optimism on this particular day about those talks with the chinese the president just saying we may make a deal at some point, but right now it's $200 billion at 25%. that's the tariffs that he has imposed already. the president going on to emphasize that if the chinese do retaliate, which was announced this morning, then the united states will automatically kick

in with what he said was $257 billion in additional tariffs or tariffs on additional $257 billion worth of goods that's something they refer to as $267 billion in the past. nonetheless, the president has suggested and suggested today that they would do that pretty much automatically the take-away from the president's comments here is that we're likely not done with this back and forth exchange of tariffs between the united states and china given the chinese reaction overnight, tyler. >> china announced they should intending to put $60 billion worth of u.s. goods under tariff, and how has the administration reacted to that that's not $200 billion, but proportionately to what we export there, it is roughly in line with that >> what you hear from administration officials behind the scenes is they feel confident that the united states economy can handle this. they feel like the u.s. can take this hit there will be some short-term pain, but ultimately, the economy is roaring to such a degree that if you are ever

going to reset this relationship between china and the united states in terms of the manufacturing imbalance you just heard the president talk about, now they argue is the time to do that now, the critics say there is never a good time to do that, particularly when you talk about putting tariffs on that will have an impact on economies on both sides of the pacific ocean, but you heard wilbur ross earlier today talking about the idea that ultimately these tariffs are not that expensive in terms of the costs that consumers will see across the board. we'll see what the president has to say later on in the day about this again, but ultimately, they feel this is the time to do this, and they're moving ahead >> all right eamon, thank you very much i'm sure there will be more coming as the president and his polish counterpart face the press in about an hour's time. meantime, china announcing it will hit back with big tear ofs of its own we just mentioned those against the u.s.

now, as eomon just mention, wilbur ross was on -- they are not the end game here. >> the purpose of the tariffs is to modify china's behavior especially in technology transfers and other tactics, such as subsidies and market limitations. the real purpose isn't to end up with tariffs the real purpose is to end up with a level playing field so that american firms can compete properly new they are saying these tariffs can take a bite out of their bottom line and eventually raise prices for consumers alibaba ceo jack mah predicted that the trade war could last for decades.

i think thisbob -- >> hello, old friend the trade names that would normally be down on negative news, and we are imposing new tariffs after all, actually are the market leaders let's take a look. remember, we use boeing and caterpillar as sort of proxies for trade war discussions. they're having a great day apple, another one having a great day, and all of the steel

metals, mining companies we use as proxies for trade wars. they're having a good one. fit bit exempted from that, where the other thing is people saw the chinese stock market holding up it was up about 2% be careful here. china is up because there's a lot of talk of more stimulus over there, and you can see that if you look at the leadership of what was moving really big over in china. you saw it from jack mah, and all of them are trading down, although not dramatically. be careful thinking trade

doesn't matter you look and say, oh, trade doesn't matter trade war could last for two decades. what was the most passed around comment on any of the trading desks this morning the chinese businesses could even move outside of china placy's ceo also said more tariffs are going to affect our businesses you'll hear a lot more about this in the next couple of weeks assist we go into earnings season back to you. >> thank you very much we have breaking news on tesla they're responding to the criminal charges by the doj. phil has that for us phil it says last month he was considering taking the company private. tesla received a voluntarily request for documents from the doj and has been cooperative in responding to it we have not received a subpoena, a request for testimony, or any other formal process we respect the doj's desire to get information about this and believe that the matter should be quickly resolved as they review the information they have

received this statement, while they are saying it's a voluntary request for documents, it comes down to how do you define an investigation? or a probe by the doj? the fact of the matter is, in some capacity the doj is looking into elan musk's tweets from early august involving taking the company private, and that's the reason that you have shares under pressure prior to this the only indication of a federal investigation is regarding civil investigation from the fcc, but now it is clear that the doj at least on the casual sense and i don't know if that's the proper term here. they are looking -- they have looked for and received documents from tesla saying they have cooperated with the doj >> theoretically, the charges would be what? stock fraud, stock manipulation? the s.e.c. would go after for

manipulation doj would go after them for fraud. is that the idea >> there are likely different thresholds where, that would be my assumption. at the end of the day you have to ask yourself was there a document or some indication that elan musk knowingly and with intent was trying to mislead investors, and i think that's really the core question there as opposed to did he send this out and, you know, probably wasn't a wise thing to do. all those questions are swirling around >> unwise tweets is not illegal. intent is. phil lebeau, thank you we'll see you later. morgan >> well, to this point economists were saying the tariffs put in place so far weren't enough to hurt the u.s. economy, but that's not necessarily the case now an additional $200 billion worth of tariffs threatened against

china. steve is here with a closer look at what economists are now saying >> the latest round are probably reactions from economists that range from the effects will be eligible to we can handle it, and the chance of recession it is now greater wells fargo writes the u.s. economy will be able to continue weathering trade related uncertainties so long as business investment and consumer sentiment remain positive. this outcome would be supportive of risk assets just to note that these tariffs are now large enough that consumers will see the effects of these tariffs higher will hurt the economydy distorting prices and creating inefficiencies globally. companies that rely on global supply hold off investment decisions given the uncertainty around tariffs in stress scenarios. a material fall in asset prices and hits confidence. recession outcomes in the u.s. are possible goldman seeing inflation 0.3% higher with those 10 % tariffs and 0.8% higher if they escalate

to 25%, and you say markets didn't react so you can see the concern about higher inflation and higher treasury yields today. several economists say the tariffs will reduce gdp to on 0.4% not much going for, but, hey, i give a lot for 0.2 if i'm growing only at 2%, which is trend. investors say they should prepare for a long siege it's not something that looks like it's going away any time soon >> certainly it seems like time is of the essence, in terms of some of the predictions and forecasts from economists. i mean, kwha are they looking at in terms of what you start to see? >> 2019 is the year that they've probably given a lot of the stuff we get from china, for example, for christmas, as you know, ordered already. by the way, perhaps preordered in anticipation of these some of the trade data we've

talked about that's been distorted and now they're waiting until they give you a final sort of estimate of the economic impacts sort of to get better fuel for the retaliatory tariffs and ways that china, if they're done with the $60 billion or maybe they do more. how will it affect american consumers and what's next? joining us now two people who know about it. david wessel, senior fellow of brookings and contributing correspondent to the "wall street journal" and colin graybau, a policy analyst at cato institute center for trade policy studies gentlemen, thank you very much what is the objective here for the united states? what are we really wanting is it. >> that's a great question the trump administration has spoken in generalities it wants an end to intellectual property theft and stealing of trade secrets from the united states what steps they want china to

undertake, i'm still unclear what it is that they want. >> is it that they really want to change chinese -- i guess i'm thinking in sort of three baskets. do they want to change behavior, david? do they want to disrupt supply chains and inflict severe damage on the chinese economy and slow it down. or, third, does the white house want to win some political points domestically? what do you think? >> i don't think those are mutually exclusive they definitely want political points they want credit from voters that they are doing something to stand tough and stand up to china. i do think that there are a lot of people in the united states who think a business community, economist, and former and present officials who would like

to change china's behavior, to make it less likely that they still the trump administration really has an agenda of disrupting global supply chains. particularly those that go through china. i think that's incredibly short-sighted. it won't only hurt the chinese, but it will hurt us, and it will hurt american multi-national corporations >> colin, jack mah is saying this could last 20 years if that's the case, these dislocations and supply chains that we're going to see or expect in the near term here, we know how adaptable markets can be they will find new avenues don't you think? if this trade war lasts long enough >> absolutely. well, first of all, i don't think the trade war will last 20 years. i don't expect president trump to be in office for 20 years regardless of supply chains, you are right. companies have options it's not a matter of operating china or operating united

states they can shift elsewhere to southeast asia, for example, and take advantage of lower wages there. there are always other options besides china and the idea that the united states is going to see supply chains repatriated here because of these tariffs, which president trump also says he hopes are temporary and are a means to gain leverage over china to strike some kind of deal, i just don't see it. >> but just to dig into that further, david, i mean, we have seen some companies, including a number of foreign companies. i just think about the tariffs on solar goods, for example, and appliances we have some companies say they are going to do more manufacturing here in the u.s. you have tax reform. you have regulatory roll back. why wouldn't we potentially see more of those supply chains come back on shore here >> i this i two things first of all, yes, there will be some manufacturing that comes back to the united states as a result of this consumers will pay more. they're already paying more for washing machines and dryers as a result of the tariffs.

remember, of course, you know, fewer than 10% of american workers are in manufacturing, and all 100% of american borkers are skurmds. the second thing is -- i think that it was interesting. i heard peter navarro this morning, he talks about it as a victory if production moves from china to south korea or vietnam. i'm thinking to myself, if i'm an american worker and i'm worried about foreign competition, what difference does it make to me whether the tv sets are made in south korea or china i think they're exaggerating the positive effects of this on production in the united states, minimizing the cost to consumers, and the cost to productivity after all, we have very slow-growing productivity in the united states. this is not going to make it grow any faster. >> all right, gentlemen. thank you very much. cato from brookings right on the same stage lovely wow. >> colin, with he appreciate it. david good is always good to see you. >> thank you very much wrv. >> we have more breaking news on tesla. just a few minutes ago the carmaker responding to reports of a criminal probe. stop taking a hit.

what's next for tesla? plus, massive flooding continues across the carolinas in the wake of hurricane florence. we'll tell you what's next and why some areas the worst may still be yet to come that is straight ahead stay with power lunch. see that's funny, i thought you traded options. i'm not really a wall street guy. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade in them therr hills on your guarantevacation.find gold but we can guarantee the best price on this rental cabin. or any accomodation from hotels to yurts. booking.com, booking.yeah

>> as the trade battle between the u.s. and china continues, china says it's going to

retaliate by imposing its own tariffs beginning on monday, but some say it may actually decide to use its currency as a weapon stho what would that mean joining us ceo of exonte data. thanks for joining us. >> thank you >> the question comes up, i keep hearing this, what if the trade war becomes a currency war i thought we were already in a currency war with china. we've been yelling about that for years, right >> we've certainly had a pretty significant weakening of the chinese currency over the last couple of months, but the ironic bit is that they've kind of redone it here in the last six week while we've had the escalating rhetoric around the trade itself, the currency is actually stabilized i think actually one of the reasons why the market impact here of the announcement has not been bigger is that the currency is not moving. we're often seeing that there's this correlation when the currency is really in motion that's when the equity market gets nervous one of the reasons i think why the equity markets are relaxing

is that in the short-term, they essentially are pegging the currency >> to that point, i mean, the dollar index is a bit higher today, but in general we haven't seen the type of move that we've seen i guess in more recent months are not the dollar strengthening on these trade headlines. in terms of where it goes from here, what do you think? >> yes i think it's absolutely key to watch. how are they going to essentially manipulate the currency in coming weeks they've essentially fixed it in the last few weeks are they going to respond to this further escalation in a way where the currency breaks weaker there's a very key point if they let the currency weaken beyond seven, that could set in motion essentially a dollar move globally, and that would be in very important both for the currency market and also because that has indirect effects into the equity market in a negative direction. >> how much does a weaker chinese currency help the industries in china that are going to be hit with tariffs can it offset those tariffs 70%,

90%, 30% what >> so we are v seen sort of a 10% move in the currency over last couple of months, but obviously, it depends on what the starting point is. if we're going to see 25% tariffs on the majority of chinese goods, obviously it would be a very significant move that would be needed offset it one thing that's going no the background is that the chinese authorities in various ways are trying to provide subsidies to key industries so they don't suffer too much. that's something that is hard to see on the screens, but it's something that is happening in the background >> and, of course, the fed we fully expect them to raise rates again next week and through the end of the year and into next year that's theoretically supportive of the dollar. that's counter productive for what the trump administration is trying to achieve against the chinese, isn't it? >> yes so you have a kind of dilemma here on the one hand, the u.s.

economy is strong. that pushes up interest rates and helps us support the dollar. on the other hand, the administration doesn't want to see that it's a tricky situation, but i think you're absolutely right. if you look at what the fed is doing, it's highly likely that we're going to get a rate hike in the september meeting it's also highly likely that these rate hikes will continue at a quarterly pace for the foreseeable future, and that's certainly a source of dollar support including relative to china. >> indeed. thanks again for joining us today. >> the markets seem to be unphased by the latest trade headlines. what will spook investors? let's bring in jim paulson, and mark travis, president of intrepid capital funds thanks for joining us today.

i think the big thing is the fantastic fundamentals as long as the economic data stays good, as good as it's been, the teflon around president trump's trade war, the teflon around powell's tightening, is going to remain in place the market is going to feel impervious, but if that fantastic fundamental starts to fade, the economy slows somewhat, then i think the teflon comes off the president and the fed and the investment markets might start to struggle more generally >> what do you think do you agree with that >> well, i think think morgan, if you look back to 1985, the plaza -- tie-bot debacle in 1997, russian ruble in 1998 ended up 20 years ago long-term capital blowing up, you got

to -- tariffs impact on monday, a fed on wednesday, and you've got a price for perfection equity and debt market you move the chinese currency or dollar up, and we have already killed off arnl tina and turkey. let's see what happens elsewhere. snoo you this is often becomes a buying opportunity, but a guy like mark travis is finding it difficult to find value in this market if you throw everything else out, the trade war and everything else, the fed raising rates,ing this ten-year bull market is priced to perfection, as he put it what do you think? >> i don't disagree with that, bill i really think the odds are that it's going to be a struggle for the is stock market. either continuing to mark time

or hitting an air pocket maybe i would be much more aggressive if we had a 10% or 15% correction and still thought a recession was a ways off right now i don't disagree with mark i think valuations are extraordinarily high you got the fed working hard to kill off the recovery as well as the market with tightening you got the president working to slow down global growth, and wall street is depending on global sales to keep those steroid-induced earnings gains we've been experiencing going. if any of that slows down, like i said, a fantastic fundamental slow, which i think they're going to, then i think suddenly this whole thing looks a lot different. there's no way the president could continue a trade war if the u.s. growth slows back into the twos somewhere i think he would have to stop. >> are you raising cash? are you getting -- are you taking risk off? what are you doing >> we certainly have i would just respond to this with great -- much greater diversification. i move away from the united

states, which hasn't seemed to feel the pain as much as international stocks i would raise some cash or buy some short-term bonds that are paying competitive rates finally against equities i would look at a commodity etf and some gold. i would look at maybe a hedge fund type approaches i would move to more defensive sectors in my exposure towards stocks i would defang my portfolio away from those popular tech names. a lot of different things that might hold us up if we do hit an air pocket >> jim paulson, thank you. thank you to mark travis as well >> wherever he is. thank you. >> amazon raising the stakes and the battle for your home reportedly making a big push into appliances now. how alexa might soon be popping your popcorn and boosting your base it's all about the base. straight ahead on "power lunch." . . we're putting ai into everything, and everything into the cloud. it's all so... smart.

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>> there's a lot of reasons to look at rates and think they're going to continue to move up, but the inflation seems to have paused after the wage component, so we'll have to keep an eye on this particular spread morgan, back to you. >> rick, thank you now to the carolinas hurricane florence may be leaving to push floodwaters continuing to rise contessa brewer is live for us in irwin, north carolina, with the latest contessa >> i'm standing in the cape fear river, actually.

two hours ago the homeowner painted a white lane where the water was. now the water is here. this is his home so far he has power, and he does not have water in the back of his house. you see this shed over here? he says even during hurricane matthew, the cape fear river did not reach up that high the cape fear river right now is running at major flood stage 60 feet. it's not expected to crest until later tonight. roughly at 62 feet that's down stream from here take a look off in the distance. you see these three telephone poles? that marks the beginning of the river bank, and from there the homeowner tells me the river usually sits down, oh, 30 feet or so. that's where he is used to going fishing. they said that they were originally looking at a property on the cape fear river in fayettville and decided no, it was too close. they saw what it had happened during hurricane matthew they bought this one because

they thought, oh, the river is never going to come up if this is as high as it gets, we're safe look at his backyard here now. this is causing a lot of problems for commerce. they had to take the staff to local hospitals, and there was a concern for the safety of the nearby community as well amtrak has canceled its trains south of the north carolina border as you can see, with the river expected to crest tonight, the threat is not over one more note here there's a fishing pole stuck right here you might wonder if he has done that to mark some kind of spot no just for fishing now he gets to fish right if his backyard doesn't have to go down to the riverfront morgan >> contessa, thank you >> the river came to him wow. that's amazing tesla shares getting whacked following those reports of a criminal investigationing into

elan musk tweets last month. a look at what's next for the company and the stock after th is this is john, and i'm with pactel cellular in los angeles. well, welcome to the demo... (danny dichter) in 1989, a new wireless technology was being tested for the first time ever. it allowed more users to connect at the same time while on the move.

other wireless carriers considered the tech too expensive, but we saw it as the birth of reliability and the backbone of a company we all know as verizon. so we were the first to commit to the cdma system and the first to build our entire network around it. today, once again, we're transforming reliability as we know it, building america's first and only 5g ultra wideband network-- with unprecedented capacity, enabling faster speeds and the lowest latency anyone has ever experienced on a wireless network. which is crucial, because we'll be relying on it more than ever. (man) it's really quite impressive, uh, what y'all have put together here to, uh, to show the quality of the system.

>> hello i'm sue herrera. here's your cnbc news update for this hour. senators on capitol hill telling reporters that it would be disqualifying if sexual assault allegations against brett kavanaugh were proven true the chairman of the senate judiciary committee says the accuser, christine blazi-ford has not yet confirmed she will appear at monday's hearing >> i have said from the beginning that these are very serious allegations, and she deserves to be heard she's now being given an opportunity to come before the senate judiciary committee and to answer questions, and i really hope that she doesn't pass up that opportunity

the pressure and natural gas pipelines prior to a series of explosions and fires in three suburbs of boston last week was 12 times higher than normal. that is according to a letter from the state's senators to executives of the utility in charge of those pipelines. and an 85-year-old great grandfather who tackled a would-be robber wielding a sawed off shotgun no less has become an internet hit. dennis o'conor was at a bar in ireland when three robbers burst through the door o'conor grappled with one of the men before he fled they're still at larnl, though. from the justice democratic. the company firing back saying it defendant's exhibit receive a subpoena

a request for testimony or any other formal process, but it did receive a voluntary request for documents. this comes as the company is facing an onevery onslaught from german auto jienlt audi when it comes to electronic -- electric luxury cars. what's ahead for the company and the stock, which is down 3% today? tony is here to tell us. he is a senior analyst at bernstein. the last month tony has not been good for elan musk what's next for this company and its shares >> there are two separate issues one is a leadership issue around and whether it would be better for him to have a second in command or a partner in command that would enable him to be the other person to be a public spokesperson for the company and have elan focus on what he does extremely well, which is

innovate and develop creative ideas. the second question, of course, is fundamentals. is tesla delivering on production goals and is it able to meet its financial goals which would be net income and free flow positive. we think it's possible for tesla to do that, but i think what we're going to be looking for and i think the investment communities is going to be looking at is how does tesla get there? we believe they can get there by reducing capital spending. we believe that they can get

there by dramatically cutting operating expenses, so we think operating expense growth might only be 10% in the second half while the top line grows more than 100%. there's a way for them to get there, and the question will be did they get there in a way that's sustainable, and that's really going to be the operative question once we see the results. >> tony, what do you make of elan musk's recent comments about delivery logistics health. is this something that investors should be looking at and saying, oh, this is positive they're getting some of these autos out to their customers, or is this just one more sign that this is a company that potentially needs more folks in managerial and operating positions? >> the delivery delays do worry me because they are cutting back on hiring people and operating areas so that's sales and

marketing in particular. that could be translating into some of the issues that tesla is facing when a company is growing at 100%, it's infrastructure needs to ramp at 100%. i think in the spirit to try and drive profitability, they may not be ramping it at the same rate, and hence, you're seeing this disconnect between how big a threat is the competition from audi or other luxury makers? quick. >> not a very big threat >> "mad money. that was even fewer than ten words. that was good, man tony of bernstein, thanks. >> thanks for having me. >> all right coming up, verdict is in on one of cnbc tech gurus he took the new iphones out for a test drive are they worth it? find out coming up i'm ken jacobus, i'm the owner of good start packaging. we distribute environmentally-friendly packaging for restaurants. and we've grown substantially.

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>> the new iphone, the 10s, the xs, the 10x max. they won't hit stores until the he wanted of the week. the first reviews are out, including one from our own technology product editor cnbc.com todd hazleton who says that you may want to skip these new models if you bought last year's iphone 10 let's bring todd in right now with more on these new models. i have the max you have the -- >> i have the 10s. >> s >> we're supposed to call them 10 not x, right? >> just like last year's the 10 expect likes saying x, though. >> everybody knows what you mean >> you say these are better than the galaxy 9 >> yes i think so personally, i prefer these better i bought the gal aky note 9, galaxy -- it's not that i'm against android. i think these are better phones for me, and i think for a lot of people especially if you bought the previous iphones, you are going back to the iphone 7 upgrade to these. if you have an iphone 8, you might want to upgrade to these too because apple is getting rid of the home button this is the new way forward,

right? if you wanted to save money, there's the iphone 10r that's coming out next month for $749 this stashtsz at -- >> why is in better than the android? >> the pictures were blowing me away my note 9 takes great pictures too, but i have a picture of my dog. i don't know if we can show that that i took on the beach maybel there we go. there's the little puppy really quick, hdr focussing. that means when you are taking the dynamic range, so the lights and the darks right here in this picture, for example, you are seeing everything really well balanced on other phones sometimes it can be slower. look, android is great too i'm not saying anything is wrong with android or samsung, but apple has been great for me personally i really like the support system, everything you get >> imgoing to have a guide, but basically slide up from the bottom of the skrien that's your new go home. if you open up an app first, you would lied is from the bottom of the screen other new features, though, this is 6.5 inches, so previously it

was just 5.8 that's on the iphone 10. steel size, but for the first time it was cool they didn't do gold last year they have a new 512 gigabyte storage option, though on the high end that's $1,449, employ that's a lot of money. >> this is supposed to be very water resistant. have you tested that out >> i dropped it in the pond out here yesterday the fountain, if you will. there's a picture of it. >> that's in the water >> the one you're holding here >> technically that's like a -- you can go to three feet for 30 minutes, and you can actually do that with the galaxy x 9 too you can do it with samsung's phones a lot of new phones. apple is doing it with these, and the iphone 10 diagnosis r that's coming out next month is not as water resistant, nor was the iphone 10, though it can

>> most don't need to upgrade to 10s because the features are not that big of an upgrade i want to see what happens next year you know how apple has always done the iphone 6, 6s. this year is the 10, 10s it's a small bump for the people that kind of missed it the year before next year i think would be the time for iphone 10 users to upgrade. >> now, the 10r, you haven't got tony review that yet >> i saw it. i haven't reviewed it. >> it's the lowest price of the phones >> $749. i think that's going to be really popular you get the same form factor without the home button and everything else like that. it's a lot more affordable, and that's going to trickle down to the monthly plans too. it's not going to be $60 it's going to be $20 >> that's an hour and a half longer, tyler, thaen the iphone 10 and the iphone 10s is 30 minutes longer battery life than

the iphone 10. an improvement on both that's due to the new process. a lot of things. the screens too. the technology is a little more bat batliry-friendly >> there's one missing >> we want to stick with the smart devices theme and, todd, we want you to stick with us as well alzblon is now getting into the home appliance >> a subwhoofer and an in car gadget according to sources some of the devices will also have alexa built in while others require an echo device the products signal amazon's move into the home appliances industry going head-to-head with companies like sonos and ge. even though both of those companies already have their own alexa linked devices

sonos has an amplifier and subwhoofer that works with alexa, while ge has a microwave that's connected to alexa. also, garmon has a dash cam that works with alexa in the car. just today, audi announcing it will be getting a full alexa ala integration for the e-tron suv competition is really heating up in the smart speaker market. amazon dominating the market early. one research firm reports that google home beat amazon echo in two shipments this year. that was the second quarterer in a row. and note guys that jeff bezos says he wants customer to use alexa wherever they are. >> thank you >> todd, we just talked about the new iphones and, of course that, is the battle for your pocket essentially battle for the home is really heating up here especially given the fact that the smart phone is saturated. >> morgan is especially excited about the subwolfer, by the way. >> i don't know if i'm excited

about that, but the microwave? i think amazon is doing a great job bringing alexa everywhere. it's in light switches it's in smoke detectors. at some point we have to worry if it's coming to cars too, why does amazon want to have speakers everywhere we are i start to worry about privacy concerns i don't like the idea. i like having alexa in the living room. i'm like, you know, play music turn on the fire tv. but once it starts to get everywhere, i start to wonder why. why do we need it in all those places and in the car, we already have apple car play we have google android auto. i think those are better than anything amazon already has. it doesn't make sense to me. >> they don't have a good mapping service. what are they going to add >> we were talking before the show you'll have all alexas around the house, you talk to the microwave and the speaker is going to am come back to you >> i had the amazon echo show on the bookshelf and the fire tv. i tried to ask alexa something

it would go to the tv or the show you're supposed to know where you are. >> thank you, todd. >> too many alexas is my point >> yeah, too many alexas you have them in adjoining rooms. they get confused. >> and a google home >> there you go. that will be good. they would fight >> drives my wife nuts >> all right coming up, streaming front and center at the emmys last night a look at the winners and losers and some of the surprises. that is next alerts -- wouldn't you like one from the market

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show me decorating shows. this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. streaming video was the star last night at the emmys. amazon got a dozen of emmys. both stocks up over 1% look at netflix up 3%. julia is in los angeles with that story hi, julia. >> well, tyler, netflix tied hbo for the most emmy wins this is a first. both hauling in 23 statues hbo's talley was down from 29 a year ago and netflix brought in three more than last year. this after netflix went into the ceremony with the most nominations. the first time that hbo has not dominated the nominations since the year 2000. now hbo did collect nine wins

for "game of thrones" including best drama as well as three for west world netflix is bolstered by the crown and black mirror amazon had had a big night with eight emmys total. the first streaming service to win outstanding comedy who brought home, three for "handsmaid's tale. and disney is gaining some awards acclaim as part of the fox acquisition. fx network took home a dozen awards while fox won three now the telecast itself did not win in terms of ratings. viewership declined nearly 11% overall to an all time low nbc points out that ratings for the key 18 to 49-year-old demographic was flat with last year guys, last year the show was on a sunday night back over to you >> flat is the new up. >> i guess >> and did they have -- did this show, julia, run later in the year than normal

or is it roughly in this time frame? >> roughly the same time frame they just switched it from sunday to monday flat really is the new up, tyler, when it comes to the awards shows if you look at the declines when it comes to shows like the oscars, it's really hard to hold on to audiences when there is so much competition for people's time >> thank you very much, julia. appreciate it. >> i'll say that wedding proposal was pretty great. >> how sad that is the highlight of an emmy show? whatever >> coming up, president trump and the president of poland set to hold a joint news conference. that is scheduled to happen in the next few minutes we're going to bring it to you live when it begins. don't go anywhere. "power lunch" is back in two - our markets are currently experiencing

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for the amazing price of only $129 each. so don't play games with your money, make your call today. and welcome back, everybody. the second hour of "power lunch. you are looking alt a lit a liv inside the white house where president trump and the president of poland are expected to hold a joint news conference minutes from now probably 15 to 20 past we'll bring it to you live when it begins. first, let's get to the white house on a busy breaking

"newsday." what can -- breaking news day what else is going on? >> that's a good question. this event today comes as there are a number of domestic political issues swirling around this white house as there so often r tare. the president and president of poland going to take the podium. some of the questions they'll face from reporters will be very much focused on the domestic political issues, particularly the fate of judge kavanaugh. the president's pick for the supreme court is now facing charges or allegations of sexual assault due to a situation that occurred, allegedly, back when he was in high school. so we'll see how the president handles that question if gets it and also questions are likely surrounding these new chinese tariffs. the president announced that last night tariffs on $200 billion worth of chinese goods. the chinese announced they're retaliating today. what does the president have to say about the impact of that on the u.s. economy and then, of course, there are going to be questions about poland and the united states you can imagine that questions about nato, questions about russia are also in the air here.

but it looks like it will be a couple more minutes. none of the vips are here in the room that is a dead give away when they're going to get started >> all right thank you very much. and we'll stay in touch as you'll cover it all for us as it happens. morgan >> despite the battle between the u.s. and china, markets don't seem to betoo spooked. all three major indices are in the green. actually dow jones industrial average is at session highs, up more than 190 points so what are investors concerned about if not tariffs let's head to bob pisani on the market floor. >> they're concerned about tariffs. a few thing that's are unusual about today. normally 10% tariff that, is a down day but it's not take a look at them, trade movers these are stocks that would be down on news like this caterpillar, boeing, those are the two proxies for global industrials. they're not down apple is having a decent day all the steel stocks and metal stocks are holding up pretty well a couple things a little bit different here number one, the tariffs were only 10%

there had been concerns it was 25%. a little relief. number two, the unusual number of exemptions are here everything from apple watches and other apple products, fitbit and other products that lessens the impact. then the china market held up well overnight a lot of talk of additional stimulus over there that moved a lot of the construction names that we saw here here if you look at the united states at the big china tech names that trade all the time, alibaba is weaker. they were talking about a trade war that could go on for two decades. that got the biggest play of anything it really does matter. elsewhere, a lot of people are concerned about trade wars continuing bank of america released the monthly report on all the global fund managers and what they're worried about. again, for the fourth straight month, the trade war was far and away the biggest concerns for global market makers 43% said it was the number one concern. china slowing down 18 and quantitative tighten, that is the federal reserve, of course,

increasing interest rates and decreasing liquidity that's a very, very distanlt thi -- distant third. trade war concerns are not going away at all. back to you. >> bob, thank you very much. if the markets are not rattled by the tariff situation, what are the biggest risks for your portfolio right now? joining us, cio of cibc wealth management and neil hennesey, cio with the hennesey funds sitting next to me welcome to hq today. >> thank you. >> what is keeping you up at nights if it's not the tariffs right now? >> nothing really. >> do you like this market >> i love this market. >> how can you not >> it's not expensive? >> no, it's 18 times earnings. people back in the late 90s and now you're talking about pes in the 30s. this is crazy. the thing i like about this market more than anything, i can go through the numbers, there is absolutely no euphoria in it it's not like you get in a taxi in new york and a taxi driver is telling what you stock to buy.

there is none of that. so essentially once the euphoria comes into the market, then i think it goes the opposite way but right now, the economy is doing very well growing at 3%. earnings are up. cash flow is up. inflation is down. you know, you name it. earnings are -- salaries are up. everything is going in the right direction. >> okay. >> so the tariffs, they don't bother me. china needs us more than we need them >> david, what do you think? >> we're cautiously constructive because valuations are fine. and the underlying economic fundamentals are strong. i do have some concerns on the trade front, particularly for 2019 i think the market got a little complaisant with a scenario in which we eventually make up with canada and mexico and you have a new and improved nafta then we settle things with the eu and industrial tariffs. then we all band together to force the chinese to change their practices. i certainly hope it works out

that way but there is a lot of things that can go wrong in that scenario so i think this so-called trade war overhang will be with us for many more months i don't think it will impede the market, it will be a source of volatility from time to time >> neil, i want to dig into this idea of no euphoria in the market i get the comparisons to the late 90s and it's different. we talk about the f.a.a.n.g. stocks we've seen a lot of runs in the names. a talk about how expensive they've become recently. we start to see weakness you are concerned about that >> there's a lot of value in the market you have to pick where you're going to pick the value. essentially most of the value is in boring stocks boring companies >> like what >> look at casey's general stores i mean they have 2000 stores mainly in the midwest. their biggest product outside of gasoline is pizza. people actually go there to get pizza. which i -- i mean i can see going there and getting pizza.

sushi, i'm not so sure of at a gas station. they get a low price to sales ratio. they have very good earnings dividends are very well covered. they can go -- >> go ahead. >> i'm sorry those are mainly small caps though, right? >> mid caps. >> so they're immune, theoretically to the tariff wars anyway they're more domestically oriented to begin with, right? >> exactly exactly. so when i look at stocks, i'm trying to buy values so i won't pay more than 1.5 on a price to sales that's in our mid cap 30 fund. and so we try and look at, for instance, trinity industries nobody is really heard of them i didn't really hear of them until they came into the portfolio. essentially, they go from making wind mills to guardrails to barges to rails. they lease, they manage, they manufacture. the earnings are very good with the low price to sales >> so, david, number one, leave us with a couple of ideas that we can put to work

>> are you worried that tariffs cause prices domestically to go up as prices and wages go up, that might occasion quicker, more dramatic interest rate hikes >> i think we continue to get escalation upon escalation i don't think you're going to see a lot of that between now and year end it takes more time for those pressures to build up. if anything, you would say now we have seen more deflationary impacts and they deflated as the so-called trade war rises. and in terms of ideas, you know, we still see a lot of value. a really good balance between strong earnings growth and reasonable valuations. in the health care sector, in consumer discretionary and technology >> david and neil, thank you both for your thoughts on today's market action. >> appreciate it

>> president trump and the president of poland are set to hold a joint news conference any moment now we're going to bring you that live once it begins. don't go anywhere. at fidelity, our online u.s. equity trades are just $4.95.

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nasdaq is up nearly 1% what is leading the market higher tech stocks, industrials and consumer discretionary. >> thank you very much we are, we think, moments away now from a joint news conference with president trump and the polish president many european leaders are critical of mr. trump's policies including his tough stance on trade, duda is one of his biggest supporters joining us is fred kemp, the president and ceo of the atlantic council fred, what do mr. duda and mr. trump have in common that makes them so chummy >> well, you know, i was actually in poland when trump made his foreign trip there. and president duda hosted him. there were a lot of places where president trump lands and he has a lot of people booing him or carrying signs n poland, he was an arriving hero so i think that is a good thing. and the thing is that president trump is not beating up

president duda about poland's democracy. he embraces his the idea of having soldiers on the ground. right now there is a rotational basis. and he likes natural gas he would like poland to be a hub for that energy, again, as a way to offset russia >> they seem to have also a shared, maybe the word is soo stro -- too strong, disdain or skepticism of the european union and the european community overall. that is for torre, fred. i'm sorry. >> well, i think you're correct to an extent you know, really the united states is hoping to be able to, of course, negotiate a bilateral agreement with the united kingdom. and so we're optimistic that, you know, separation from the eu will allow the uk to have more

ownership over the way in which it does the trade policies and so, you know, if there's -- if there is some similar interests with other countries in the eu, of course, the president's going to be open to that but really what this is about, i think, in the trade concept is the u.s. and eu continue to work together against the mutual concern which is china we're seeing that hopefully come to fruition with some of the bilateral talks. >> let's face it duda just last week called the eu an imaginary community. i mean they are part of the eastern expansion of the eu of some years ago but they feel like they're still, you know, an adopted child in all of this they don't feel like they're getting the benefits of being members of the european community. so i wonder any talks that president has with this particular president, what impact in k. that have on angela

merkel and president of france and others in the european commission >> well, i think that we hope that continued conversation between the u.s. and any leader in europe whether it is at the eu level or the individual country level that it will result in further cooperation and furthering relationships with those countries whether it is economically in regards to lng or natural gas or in other topics >> so the one thing i would say on top of that, i spent quite bate of time with president duda it's a complicated picture they actually like being members of the european union. it gives them status and additional, something to belong to when they're hanging out there toward the russian border. but they want also to have the freedom to do what they want to with the judiciary system. they feel the european union is coming in on them there. but the european union among pols is enormously popular

they got enormous benefit financially and economically >> i would think so. because the european union at the core of it are making it very easy from people from any country to work in any other european union country and so the polish population is taking advantage of that right, fred? >> oh, yeah. i mean if you go to london, any restaurant you go to is full of pols it is also medical doctors and architectses and so the pols are the most talented of the europeans in terms of skill set and they're all over europe. >> john harwood joins us as well john, i would like to think that questions that the president of the united states is going to get are all going to focus on the eu and our bilateral relationship with poland. >> don't count on it >> he has a lot of other things swirling around the trade fight with china but also the nomination of judge kavanaugh to the supreme court >> well, i would think for three

particular topics for the president, one as you mentioned is the trade action with china which of course, for our audience is highly relevant given the impact on the economy. but you also got the cooperation of the special counsel mueller struck last week it puts mounting political pressure on the president, especially given paul manafort's participation in that june trump tower meeting with russians offering dirt on hillary clinton and paul manafort's long connections with russian money the third is the supreme court nomination of junl kavanaugh i think the president's approval ratings have dropped below 40% republicans are in danger of losing the house perhaps even the senate.

so i think it's a brief press conference two questions per side but there's a lot to talk to this president about that isn't about the eu >> all right john, thank you very much. and we're going to take a quick break while we wait for president trump and the president of poland to take the umdi we'll bring that you news conference live when it begins meantime, "power lunch" will return in two minutes. like ever. they reveal in extremes and defy limitations. these pursuits may seem unnecessary. but the scariest thing i can imagine is a world where this, doesn't exist. you might or joints.hing for your heart... but do you take something for your brain. with an ingredient originally discovered in jellyfish,

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welcome back to "power lunch. we have a market flash meg? >> the market flash on abbvie. the california department of insurance said it sued the drug maker alleging illegal kick backs were paid by the drug maker by doctors in order to get them to prescribe the drug they're down 1.7%. they brought in $18 billion in 2017 revenue california here saying essentially this is the largest health insurance fraud case in the department history there they say $1.2 billion were gotten in the gain in terms of this case. they filed we reached out to them and haven't heard back now down about 2%.

>> meg, thank you very much. >> we're moments away from a joint news conference. president trump and poland's president duda we're back with fred kemp and tori whiting and cnbc's john harwood. let's go to the white house. it's a busy day. we were talking about the issues between the united states and poland but at the press conference, there is a lot else to talk about including the release -- the announcement that white house plans to release some classified documents having to do with the origin of the investigations into multiple people in the white house having to do with the russian meddling in the election. tell us about that >> yeah, tyler, you're right when you say it could be a few moments before before we see the presser, it could be a few more moments than that. we don't have the vips here in the room they like to bring the folks in just before we get started it would appear the president

and president duda are having a opportunity to talk behind the scenes we'll get more details for you but you're right, we did see the announcement last night in terms of the president releasing some classified materials which we haven't seen publicly yet based on that order. but this is something that we just haven't really seen before in american politics an on going investigation that has some baring on the president of the united states and the president is uncloaking some details involved in that investigation. the president and his allies argue that this will help show and bolster the case that the investigators fear, law enforcement and the intelligence community have been unfairly biassed against the president and ultimately we'll see the details. the president's opponents and critics say it's inappropriate for the president to be doing this when he's somebody the investigation ilts setself has e bearing on i think we'll see a firestorm on both sides once we have the opportunity to read whatever the material is that is going to be

released and we'll see exactly what point the president is making there. meanwhile, you're right. other political issues continuing to swirl around this white house today as we wait for this press conference including brett kavanaugh who we're told has been here at the white house today. yesterday he was making calls from the white house up to capitol hill to talk to senators to bolster the case as the president's pick for the supreme court. even though he is facing this allegation that he was involved in an instance of sexual misconduct back in high school that has up ended the confirmation process we'll see how that will all play out. the president so far today has been before cameras at least once and been very supportive of kavanaugh. he resisted the idea over the past 48 hours that he should in any way reserve -- remove himself from this nomination the white house wants to fight this out they want to keep pushing forward with this nomination >> the majority in the senate is very slim. it is 51-49. it would -- i would be -- i guess i would say i'd be

surprised if any democrat goes along with the nomination. but if they don't, it only takes, what, two defections on the republican side. >> it's funny how that changed over the years i remember even 10 to 15 years ago with the exception of clarence thomas, you saw pretty much presidents getting what they wanted when it came to supreme court nominations. we saw the supreme court justices go up with 90 plus votes in the senate. and that's both parties overwhelmingly supporting the president's pick that changed and this has become a very partisan battlefield i think in this year, which is a very partisan year that, is partisan squared we'll wait to see what impact that hearing has on kavanaugh's chances here at the supreme court. but the president signalling the support today and this white house organizing a defense of kavanaugh saying this is their guy. >> all right thank you very much. thank you for standing by on duty, on watch at the white house. >> in the east room there. we're going to take a quick break while we wait for the president and the president of

poland to get to the podium. there bring that you news conference live whether it begins as we head to break, take a look at this rally. the dow is up 222 points and the nasdaq was the big decliner, down about 1% and is now up 1% today. you have companies like intel, boeing, and nike leading the charge rather ironically with all the talk about tariffs really want to be there, but you can't. at cognizant, we're helping today's leading media companies create more immersive ways to experience entertainment with new digital systems and technologies. get ready, because we're helping leading companies lead with digital.

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hello, everyone. i'm sue herrera. who is your update at this hour. president trump welcoming the polish president to the white house. he told reporters that he is supporting his supreme court nominee brett kavanaugh against sexual assault allegations >> we are looking to get this done as quickly as possible. he's a truly outstanding person, as you know. he has an unblemished record this is a terrible thing that took place and it's a terrible thing this nfction wasninformatt given to us. >> police made the arrest in the death of an iowa state golfer whose body was found on a golf

course in ames, iowa collin richards is charged with murdering 22-year-old thelia barquin. she was assaulted with a knife and died as a result of the injuries and lyft has surpassed one billion rides. six years after the first launch in 2012. over the past 11 months, the company has doubled its number of rides the rival uber which launched in 2009 basically has 10 billion trips under its belt you're up to date. ty, back to you. >> i use them both quite often >> yep >> thank you, sue. we're moments away from that joint news conference that we've been talking about the president of the united states and the president of poland the dignitaries have been seated let's get a final thought here from fred kemp, president and ceo of the atlantic counsel and trade communist at the heritage foundation fred, escalating trade rhetoric and action from the white house today with respect to china.

what do you think? >> well, i watch the markets today as you all did and i think they may have it wrong this time. i think the markets have it wrong regarding the tariffs. i'm on the side of the administration in being tougher on the chinese i like the fact that we're easing the trade tensions with our allies, with mexico, hopefully canada and also europe the problem is this isn't just a business story this isn't just a trade story. this is a political story. >> i have to interrupt you, fred the president and the president of poland are just entering the room we'll be back to you >> thank you very much please, sit down >> today i'm very honored to host the president of poland, friend of mine, president duda and mrs. duda, thank you very much for being here. great honor. lovely to you have at the white house.

we spent some time in the oval office and we accomplished a lot. milania and i are deeply grateful for the incredible welcome the president and mrs. duda gave us in warsaw, poland, last year. it was a very exceptional day. extraordinary. it's wonderful to have them both with us in washington today. thank you very much, mr. president. during my visit last summer, had the privilege to stand before the monument to thewarsaw uprising and address the people of poland about our shared commitment to defending our heritage and our civilization. it was an experience i will always treasure and i will never, ever forget not far from where we stand today, another monument in another square, the statue of general koskuso in lafayette park reminds us that the bonds

between our people go all the way back to america's revolutionary war. this year the united states and poland are celebrating 100 years of poland regaining the independence and nearly 100 years of u.s.-polish diplomatic ties it's a long time i'm thrilled to say that the alliance between our nation has never been stronger with you and i at the helm. do you gr agree with that? thank you. i'm glad you said yes. >> yes >> in our discussions this afternoon, president duda and i gro agreed to bolster our robust defense ties we'll enhance cooperation and military relations, intelligence, missile defense, technology, and training i'm proud to report that poland has recently purchased a state of the art patriot missile system we make the greatest military equipment by far anywhere in the

world. and it'smade right here in the u.s. we're grateful for poland's leadership on defense spending and burden sharing in nato i want to commend poland for meeting its nato defense spending obligations and i'm glad that it blends to increase spending beyond the 2% minimum obligation thank you very much for that i'd like to share my gratitude to the people of poland for their contributions to nato's resolute support mission in afrg and the coalition to defeat isis we made tremendous progress with respect to the defeat of isis as you've seen. we also understand that you can't have national security without border security both poland and the united states understand that strong nations must have very strong borders. the president and i likewise are exploring opportunities to advance energy security.

the united states and poland are deeply committed to energy diversity all across europe. no nation should be dependent upon a single foreign supplier of energy. poland has worked tirelessly to increase energy independence nationally and across central europe it is constructing a new pipeline, the highest technology, from norway to poland and it recently built a liquified natural gas import facility last year the united states was proud to send its first export of lng to poland and soon our nations will launch a high level diplomatic exchange on energy security and mr. president, we are now as of a few months ago, the largest producer of energy in the world. so that was a big statement. president duda, i also just want

to talk to you about three c summit where central european leaders were working hard to increase energy market access, reduce energy trade barriers which is something we have to get done with respect to the european union, the trade barriers they make it very difficult for the united states. and to strengthen energy independence the united states firmly supports the goals and we are eager to expand commercial ties all across the region of europe in our meeting today, the president and i discussed our bilateral economic relationship at length. poland experienced more than a quarter century of uninterrupted economic growth which is a very big statement. very few can say that. and we look forward to further enhancing trade and investment and commerce between our two great nations.

my administration is committed to realizing a future of prosperity we experienced the highest employment level in u.s. history. we are now employing more people and have more workers in the united states that at any time ever in u.s. history i look forward to partnering with president duda as we grow our economies together mr. president, thank you for joining me today poland has chosen its place among the free and independent nations of the world and it is a loyal ally and strategic partner of the united states and we greatly appreciate that there is friendship fw our tbet two nations, mr. president, thank you very much.

>> thank you >> translator: distinguished mr. president and distinguished ladies and gentlemen i am delighted that in this year it is so important to pole loan, the year of poland regaining independence, i'm able to be hosted here and i'm at the state of the president of the united states at the white house at washington and also from this perspective, from the perspective of centennial, this fact is a part for pols, those loving in poland and abroad that ten million pols living in the united states, this is a huge symbolic importance one reason is that the matter of polish independence is one of the important points of the policy of the u.s. president

wilson it was precisely president wilson before 1918 he was the one who put polish independence on his agenda, on the agenda he was a exposer and musician. it is a fact that pols experience back then a lot of good from the united states and from the president of the united states there are no other words to describe the fact that that great state indicated to poland and defined poland as a country. it sure be stated back on europe and the rest of the world. that was 100 years ago and i'm absolutely delighted today as polish president i can be here in washington and sit at the same table with the president of the united states and sign and agreement which is deepening our strategic

partnership and renewing that strategic partnership. i'm talking about the agreement on the strategy partnership and such agreement was in 2008 between our countries. it was signed by the ministers of foreign affairs and today this renewed version, the version has been updated because a lot changed over the ten years, this renewed version of the strategic partnership was signed personally by myself and president donald trump i would like to express my deep gratitude you to, mr. president, for that fact. this agreement indicates the most important aspects of our corporation and our friendship it also sets new pops for the future the path of tightening our defense military cooperation, tightening our cooperation to area security and energy business tightening our cooperation in the broadly understood business and also in the aspect of the

already mentioned cooperation as part of the three cs initiative to when mr. president eluded i came here to washington right from the summit of the three cs initiative the first business poland organized as part of the three cs initiative. the united states was there. and thank you, mr. president for. that thank you for posting your representatives to that meeting. and all the leaders who held their speech there said in a very clear way about the need and hope for our cooperation with the united states of america regarding the renewal and building of a new infrastructure road and railway. both concerning electricity and the transmission of gas in central europe along the north-south exit and in the area between the baltic states through poland that czech republic, slovakia

hungary, bulgaria and through the black sea and then croatia and to the adriatic. this is the space we want to cooperate and develop our cooperation with the united states is a key importance in this respect also, as far as providing energy security is concerned, today we talked at length about this with mr. president. we also discussed threats to energy security in europe to the possible diverse fiction of supplies the biggest threat is posed by the construction of the pipeline we talked at length about this with mr. president and i presented the situation as it s we have to be clear and say that on the german side and russian side, this construction has already been started there is still some formalities going on however, there was no doubt that questions and energy of europe and without any doubt it also

threatens polish energy security because it is a threat, there is a threat of ration and domination especially that they're going to build more pipelines not stream three, stream four, this spread of russian domination in europe in terms of gas deliveries. what are the results of such a domination we were able to see that ourselves in ukraine sudden interruption of supplies. it had nothing to do with economic factors it was connected exclusively with that political blackmail. it is a fact and it is obvious that today we are making efrlforts and we're going to go to any lengths to protect ourselves. we decided to construct a terminal that is why we also decided to receive the lng gas from the united states. i'm really glad that we have concluded such contracts i'm glad that american companies

are right now delivering lng to poland and this precisely is a very important element of the diverse fiction of gas supplies to our country. i firmly believe that thanks to the lng, expanding the capacities as far as the gas are concerned. we are not only going to realize and safeguard our own energy needs, but i also hope we'll be able to trans mimit gas furthero our neighbors through the three cs initiative area these issues were already raised by us during our talks with mr. president. and last but not least, opening up the business. we want to invite american business to poland they're better, better investment possibilities poland is experiencing dynamic growth there are companies from the united states which have been present in the polish market for many, many years like general electric which right now is implementing a huge investment

concerning energy sector in poland, conventional energy. it is a huge contract. these are the projects being realized in poland i want to invite all business people, those who have got huge economic projects here and who have got huge possibilities of investment and we also want to invite the smaller ones. poland is a big european country. i believe it is an interesting partner why the united states and the u.s. business is very much welcome and i want to assure you, ladies and gentlemen, about that. there is also perspective of developing activity through poland to dlu the three cs countries. this is something that we've been working on as part of the three cs initiative. we want tone sure also the communication possibilities and we also want to increase the opportunities for economic cooperation. we want also business partners

from the u.s. to join our project. there are going to be a lot of communication, traffic related investment we would like to invite american businesses to come i believe that this opens up an opportunity for making joint business and, ladies and gentlemen, we're connected, of course, with an issue of military security. i'm delighted with the president of u.s. arms forces in the polish territory i'm satisfied with the decisions that were taken by warsaw nato summit in 2016 where the presidents of the military forces of nato were in poland and was guaranteed i'm also happy that we have in poland american soldiers as part of our bilateral agreements. but i would like to invite you, mr. president, to post more american troops to poland. we believe that the presence of the united states is a guarantor of security in our part of

europe we want to invest further. we want to modernize polish arms forces and, mr. president, trump mentioned the so-called arrow defense system that includes the purchase of patriot missiles we're implementing the largest military investment as far as the polish forces are concerned. we want to implement more fro jekts. we want to buy more equipment. we also want to cooperate in the area of research and development as regards to military technology and i'm convinced this cooperation between poland and the united states will go on smoothly i hope that, mr. president, will make a decision to deploy to poland more u.s. units together with equipment ladies and gentlemen, i was smiling when talking to mr. president. i said that i would very much like for us to set a permanent american bases in poland which

we would call trump. i firmly believe this is possible i'm convinced that such a decision lies both in the polish interest as well as in the interest of the united states. poland is an attractive country. first and foremost, it is a very strategic location in europe and i'm convinced that further interests of the united states also pertaining to the security of the united states itself, the presence of the u.s. arms forces in our country is important. also to protect american interests. mr. president, once again, thank you very much for this meeting thank you once again for this joint declaration that we're able to sign today thank you for also adding to this plan to the centennial of poland getting independence and also to the strategic partnership. >> thank you a tremendous amount of lng will be exported to poland. we're giving them a pretty good price. but they're buying a lot of it and that's going to be great

i do want to say that while we're together, tremendous effort and bravery is being shown in north carolina, south carolina, virginia, and the area that was so horribly hit by hurricane florence i just got some clips of some of the things that the coast guard is doing and getting people to safety and horrible, horrible conditions i want to just salute all of the people that are working so hard, the first responders, law enforcement, military, fema, the job they're doing is incredible. it's incredible. so i just want to thank them very much. and i think what we'll do is we'll take our first question from emerald robinson of one america news emerald? >> thank you, mr. president. so news today of a russian plane shot down over syria

russia is assigning the blame to israel even though it was accidentally shot down by syrian forces clearly things are heating up. the concerns by many americans, most americans that we might be involved in a war in syria soon. you had hoped >> i just heard about the incident and it seems to me that syria shot down a russian plane. i understand about 14 people were killed at least and that's a very sad thing that's what happens, but syria accord to according to early reports, so that's not a good situation. we have done a tremendous job in syria and in that region isis

and we are close to being finished with that job and we'll make a determination as to what we are going to do we have we rat kated isis in the middle east. these are people that are not coming here because they are not around any longer. we have done in a short period of time, our vice president is here, our great secretary of state who really thank you very much for the great job you're doing, mike pompeo we are working hard on that. we'll make a decision fairly quickly. thank you very much. do you have a question for the president? >> reporter: certainly clearly you said you asked president trump if he would consider a permanent base in poland that also related to russia. what would you say, how did the president respond to your position to have a permanent base from america in poland and

then also do you currently have concerns over the u.s./russia relationship >> well of course. of course i told mr. president about all of the aspects connected with the prison of the armed forces in poland first and foremost we can't say if there are permanent bases of the u.s. armed forces we will see a deter -- deterioration and increased militarization of this part of europe by russia i want to say it clearly ladies and gentlemen very strong

militarization for the first time we are able to see it in a way when the then president of poland took european leaders and to stop russian tanks which were about to attack the capital. from that moment that military expansion has been developing. it is another leg was the attack on ukraine and today we can see we are witnessing constant violation of international law it is only providing guarantee of security and possibility to

defend because let me reiterate again it is only able the guarantee of security. that is the free world this is the most crucial issue right now from our perspective we are spinning in one voice in this one generally that is why we wanted to ensure the menace of the united states armed forces there is a range of arguments which are in favor of the fact that the persons of the u.s. armed forces is absolutely justified today. that is due to the protection of the interest of the united states as well so i am absolutely convinced of this one because today unfortunately we are seeing international law being

violated today we are seeing aggressive behaviors and i'm convinced there is no more effective method of preventing a war than a decisive stance demonstrating that we are ready any moment to repel a possible attack. and at presence also means deterrence at the same time i'm convinced when we have a strong military presence in this part of europe, whether sit a potential threat there will be no war happening ever. >> he also said he would pay the united states and we are looking at that more and more from a standpoint of defending wealthy countries and not being reimbursed it's one thing when we defend countries that can't help themselves we don't expect anything for that when we are defending wealthy

countries and they are not paying for the defense to the united states they are only taking vaj taking advantage of under the circumstances. we a -- advantage of us we get along with them very well but it's not fair. that includes nato as you know, i got $44 billion additional last year they paid an additional you speak to secretary general who is the head of nato. he said he has never seen anything like it this year he did even better when a country is very wealthy and when the united states has been producting them for many years at tremendous costs, costs like nobody in this room would believe it's time that they help we call it burden sharing. they will do that but the president offered us thank you

very much. would you like to have a question? >> reporter: do you share the conviction which we have just heard a minute ago concerning the threat which is post to -- not only but do you also share that view that permanent american basis in poland are justified not only due to the security of the countries many our region but also due to the

security of the united states? >> we were being depleted under the last administration. we had planes that were old and tired and didn't fly in some cases. this is the united states. we make the greatest planes in the world and missiles in the world. we have enhanced to put it mildly our military. it is literally being rebuilt as we speak with literally hundreds and hundreds of planes and missiles and everything that you can imagine. they never had it so good because i got in congress $700 billion this year $716 billion last year.

>> and russia respects that. i respect that >> so i am with the president. i feel that he is right and i feel that you look at the history of poland and russia that's long and very complicated history. so it certainly has the right to feel that way. okay >> reporter: and a duo him after the meeting at the white house do you have the feeling that the probability that polish expectations in our country are closer to being implemented? are they going to be a fact?

>> today myself and mr. president had a meeting and then we met also with our staff we had long conversations, honest discussions and very strong at certain points as well in terms of diagnosis of the situation in the area of energy security alike i am convinced that they are going to draw appropriate conclusions. as i said, both sides presented their positions in many absolutely many elements they are concurrent as far as the assessment of the situation currently is what kind of steps need to be taken in order to protect both the issue of security and the issue of interests these are business related