20 or 30 years or so, so we can't wait to catch up with him. let's do final trades. >> arrest conic. >> alexion >> tech sector. >> thank you for being here lindsey. >> jpmorgan. >> hess. >> that does is t for us dow is down 184. "power lunch" is up now. >> i'm melissa lee the bears swiping at the bulls deputy attorney general rod rosenstein reportedly on his way out. the latest china tariffs, and a rate hike expected this week the fallout on the market straight ahead. and comcast winning a $40 billion battle and jpmorgan's jamie dimon speaking exclusively to our own jim cramer about his big push into retail, trade wars and where the u.s. economy goes from here we'll break it all down. "power lunch" starts right now

and welcome to "power lunch. i'm contessa brewer. stocks down across the board, sitting near session lows. the dow posting its biggest drop since early august the s&p 500 and the nasdaq both lower for a second straight day. oil rallying brent breaking above 80 bucks. hitting its highest level since 2014 news on an $18 billion merger. shares down 30% since last wednesday. but check out amarin, reducing heart attacks and strokes. the ceo joins us later in the show, tyler. >> thank you very much, contessa i'm tyler mathisen welcome. we begin this hour with breaking news apparently deputy attorney general rod rosenstein will meet with president trump on

thursday, apparently forestalling a resignation or a firing for now this is a perfect day to have eamon javers in the news room, and here he is eamon, what is the latest? >> tyler, we don't flow what the latest is in terms of rod rosenstein's future, but we did get a new statement from sarah sanders, explaining the logistics going on right now and we also just saw pictures moments ago of rod rosenstein emerging from the white house. take a look at these pictures of the west wing driveway these are shots just a few minutes ago. and they show the chief of staff there, john kelly, with rod rosenstein, walking out of the vehicle -- of the building, into the vehicle there. ultimately you see a handshake between the chief of staff and rod rosenstein rosenstein appears to be in a good mood. part of what might have him in the good mood is this statement from sarah sanders take a look at what she said explaining the logistics behind this saying at the request of deputy attorney general rod rosenstein, he and president trump had an

extended conversation to discuss the recent news stories, because the president is at the united nations general assembly and has a full schedule with leaders from around the world, sarah sanders wrote, she said, they'll meet on thursday when the president returns to washington, d.c. so ultimately, right now, we don't know what rosenstein's fate is, tyler, but we do know he's got a meeting with the president in person on thursday at the white house >> we will have to wait and see. thank you very much, eamon. >> you bet. so what's next joining us now on the cnbc news lines is jill winebanks, msnbc contributor and legal analyst, also one of the prosecutors during the watergate scandal it's great to see you today, jill what's at stake here if ros rosenstein is fired or resigns >> it's a very complicated question obviously, if he is fired, it could look like it is a part of the obstruction of justice that continues, since he is the one supervising the mueller investigation. and it could look exactly like

the saturday night massacre taking place over a protracted period of time i think that organizations like move on and indivisible are prepared to take to the streets if rosenstein is fired if he resigns, i would hope that won't happen, because we really need him to stay to keep oversight of the investigation, which he has allowed to proceed in a reasonable fashion. and we don't know who would ultimately take over that position, and whether that would interfere further with the mueller investigation or whether this is even just a step toward getting rid of mueller. >> given your experience during watergate, do you see parallels between the way things are progressing now and what you saw back then? >> yes i think what we're seeing now is a lot more played out in public. partly because the president tweets all of the time, or goes on fox news and says what he is actually thinking.

which we didn't always have access to during the watergate era. so there are so many similarities but the obstruction this time seems to be taking place much more in plain sight. we don't have to wait for the tape recordings that we had to wait for in watergate. we have the president tweeting things that look like obstruction. >> what -- >> and this also looks like a diversion from the kavanaugh hearings that are taking place on thursday. and the investigation that's being urged now on the second accuser of kavanaugh, by having all of the news today diverted to the discussion of whether rosenstein will be fired or resign or whether he's just clearing the air and saying, i didn't say any of the things that were reported in the "new york times." >> the precipitating item here is that "new york times" article from friday. which mr. rosenstein has said was, quote, incorrect and factually inaccurate

okay that's one thing and then he said, i have seen no reason in my personal dealings with the president to invoke the 25th amendment, which is the process by which the sitting cabinet members can remove a president for being incapable of carrying out the duties of office he says, incorrect and factually inaccurate but tell me as you listen to that, does that sound like he is denying fully the report in the "new york times" that talks about him saying somebody ought to wear a wire and go in and do that is he fully denying that he had conversations at which the 25th -- invoking the 25th amendment was discussed? and if those conversations did take place, should he be a member of the president's administration >> well, it's very hard to tell exactly what was said, if anything it's hard for me to envision him ever discussing the 25th amendment for several reasons.

not only because he's now saying there's no reason for him to suspect that the president should be removed by the 25th amendment, but because he was talking to his subordinates. and i cannot imagine a noncabinet officer who has no right to weigh in on whether the 25th amendment should be invoked or not talking to his subordinates about the possibility. so that part of the statement that was reported in the "new york times" does seem to me really hard to accept. the comment that is alleged about him saying something about maybe i should wear a wire also seems incredible, because i can't imagine a man who has devoted so much time to protecting justice would even consider doing something like that and he doesn't have that many meetings with the president, so it would also be an ineffective and meaningless thing. so both of those seem hard to believe. i would like him to make a

clearer denial in public. >> so eamon, pick up on what jill just said and as i went back and read the "times" story, it -- the sourcing was not from people who were in the room. >> right. >> but it was people who had either been briefed, quote, presumably by people who were aware of it, or it was from people who were briefed on memos detailing what had been discussed here. >> exactly and that's why what we can't get at here is the tone of the comments, right? >> the sourcing is second or third-hand. >> second or third-hand, right and there are these memos written by andy mccabe, then deputy director of the fbi, memorializing what happened there. what we don't know, was he exasperated, was he joking, was he being sarcastic. >> were these guys sitting around bsing >> what do you want me to do, wear a wire? that tone is different from hey,

i i should wear a wire that doesn't come out in memos well and really doesn't come out in memos read to somebody else who leaks them to the press. so we're dealing with a chain of information here that makes it really hard to understand what actually happened in that room rod rosenstein has said he does not believe there's any cause to remove the president under the 25th amendment it is remarkable, however, that we are talking about sitting members of the cabinet, sitting members of the administration, in the white house even discussing the 25th amendment at all. that's something that you just don't hear in washington. >> well, he's not a member of the cabinet. >> he's a member of the de department of justice. >> he's a member of the department of justice. and i guess part of the conversation was that the -- the alleged conversation, was that rod rosenstein discussed with contemporaries at the justice department or the fbithe idea that he or someone could enlist the then dhs secretary kelly and potentially mr. sessions in an effort to invoke the 25th amendment. >> i'm just curious.

jill, when you look at the political landscape of washington right now, do you see that there actually could be consequences for the president if he were to take the action of firing rod rosenstein? >> i think that if people rise up as they did during watergate, it may affect how congress views his actions. i think what happened in watergate was quite remarkable he fired the attorney general, or the attorney general resigned, depending on which view you accept. and then the deputy attorney general, as well and then the solicitor general, who was the third in command, fired cox. there was such an outpouring, that within three days, richard nixon was forced to reverse himself. he said, i will appoint a new special prosecutor and i will turn over the tapes so it took a huge outpouring from the american public to make the president do a u-turn. >> so jill -- >> and something likethat coul happen here. >> jill, you have experience

with watergate we're making all sorts of comparisons with watergate are you implying that there is a risk to the presidency >> i think that -- >> what is the probability of that, in your view >> well, in the current congress, there seems to be very little they have rejected every piece of fact. i mean, the kavanaugh hearing is a perfect example, where you have senators saying nothing will change my mind, no matter what she says. and that's a prejudgment that means why have the hearing and so if they're in a category of that sort, then what could possibly happen here that would make them change their minds i don't know it would take something very dramatic but for the american people who are basically right now the majority do not believe the president, they trust mueller, they want that investigation to continue, that if there is another step -- and let's take rosenstein's comments in the context of what was happening.

comey had just been fired. and the president had given secret information to the russians in the oval office, and had then said to lester holt that he did the firing, because he wanted to get rid of the russia investigation you can imagine how department of justice felt at that time, how rod rosenstein felt. so whatever was being said has to be placed in the context. and i'm not saying he said either of those comments i haven't heard him deny it as clearly as i would like. but i haven't heard any proof from a reliable source who was there that he actually said it or that it wasn't a joke >> jill, we really appreciate you sharing your unique perspective and adding to the conversation here. thank you for that >> thank you. >> and eamon, thank you as well for very fine reporting on this. >> thank you >> and you're not on the north lawn any more. >> i get to work in the air conditioning, in the studio, this is great today. >> thanks, eamon. a news alert in the bond market two-year notes up for auction.

rick santelli is tracking the action on the cme. hi, rick. >> hi, melissa it's a very interesting week for auctions we have two-year notes just auctioned. tomorrow's fives wednesday, we'll have a rate increase, seven years pushed until thursday a total of $106 billion. today's dutch auction result for our two-year notes, $37 billion, 2.829. so one bases point, tenth of a basis point. 100th of a basis point under 2.83, the highest yield at a dutch auction, going all the way back to 2010 and what's really interesting here is, that if you look at the yield, 2.829, it's roughly in line with the one issue market but the problem is, it didn't move and it's 2.44, worst since december 2008. 13.4 for direct. the real big variable was the bid to cover we give it a "d" as in dog

tomorrow will be five years. back to you, tyler. >> thank you very much, mr. g out in the market, plus china calling off trade talks with the u.s. after the latest tariffs on china went into effect and add to that investors bracing for another rate hike that probably will happen on wednesday. let's put it all into perspective with ryan dietrich, senior market strategist with lpl financial, plus margie patel, managing director with wells fargo asset management margie, the cliche is the equity markets climb a wall of worry. the market until today seems to keep on climbing can it >> i think it will, but i think we're going to jump around a little here, have a strong finish and it really depends on what the quarterly earnings look like when we start seeing those in another few weeks. but i think the market will redeem itself and get over this negative because a lot of sectors have had some pretty good wax over

the last couple months. >> and ryan, what do you think if margie is correct, and really what's going to matter here is how earnings come out, what do you expect when we start getting reports in ten days or so? >> well, tyler, overall, obviously, we've had a really good earnings start this year. we're looking at over 20% earnings growth this year. we're looking for another solid earnings quarter as we get into earnings over the next several weeks. one thing i want to point out here today tyler will be the 79th day in a row the s&p 500 doesn't close up or down 1%. let's assume we don't have a big selloff late in the day. that's one of the longest streaks ever only last year in 1995, two historically dull years, do we see longer streaks we talk about volatility and drama out of washington. honestly, the markets really aren't seeing it and as margie just said, the underlying fundamentals, which have gotten us here, along with the strong solid technicals, this is a broad-based rally, in our opinion. i come on with you guys every month, saying look for a surprise summer rally. that's happening, and we still think this upward bias into the

fourth quarter makes a lot of sense for equities outperforming bonds once again in the fourth quarter. >> margie, i see amongst your favorite sectors, one not included are frinancials. i'm curious why. mainly because lately they've been showing some signs of life. >> well, they have i think really more is a value defensive sector for whatever reason but i think when i look at the sector, it's an overcrowded commoditized sector. a lot of the enthusiasm is based on the shape of the yield curve, which i don't think is a way to make money and i don't see any real source of growth exploding from the sector so i think there are better places to participate in the economic recovery than the financial sector >> ryan, let's talk a little bit about trade as tariffs go into effect what's your estimation of how much impact this has on the markets, whether it's already been priced in >> sure. most of that's probably been priced in, let's be honest what happened a week ago right now, we talked about the implementation of tariffs. china had its best week it's had in a year.

that's because the worst wasn't the case we've said for a while, the underlining fundamentals, along with fiscal policy, the drivers in fiscal policy are so much greater than the potential negatives of trade we still think that's the case doesn't mean you can't have a lot of volatility, like i said we've gone a long time without a big move, up or down so the second half of september, early october can be troublesome for equities we think maybe a pullback is perfectly ripe don't forget, the fourth quarter midterm year historically is one of the strongest fourth quarters out of the four-year cycle. >> i see you like technology would that be the technology sector that exists today or the communications services sector, or is it a combination >> combination of both really the names that have i think a good growth path to continue to grow, be even if the whole economy slows down. >> ryan dietrich, margie patel, thank you very much. appreciate it. the bidding war for sky is over and comcast is the winner

now that comcast, disney and at&t have made big buys, is the media matter madness over? easy for you to say. if so, who got left out in the co ldow lunch" will be right back (indistinguishable muttering) that was awful. why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum- just to help you improve your skills. boom! mad skills. education to take your trading to the next level. only with td ameritrade. that everything sticks to stefon diggs's hands?ieve it. no, i can't believe how easy it was to save hundreds of dollars on my car insurance with geico.

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two big media mergers today.

let's start with the one involving comcast, which is, of course, the parent company of this network it won the bidding war for sky, buying it for $40 billion or thereabouts. julia boorstin is covering that one for us julia. >> tyler, comcast topping the bid of 21st century fox and its new owner, disney, to acquire british broadcaster, sky comcast paying 10% more than fox's highest bid. comcast saying it will increase the international revenue from 9% to 25%. sky advising shareholders to accept the offer immediately with comcast paying 60% more than fox's initial bid for sky back in 2016, and 38% more per share than comcast initially offered, analyst craig move fit downgraded to neutral and lowered the price target on the stocks the spotlight now shifts to the 39% of sky that disney will own through its fox acquisition. the question is whether disney

will hold on to those shares or will sell them also, what did this mean for hulu, of which comcast owns 30% and disney will own 60% once its fox acquisition is completed sources close to the situation telling me, there's talk that comcast's stake in hulu could be in play as the two media companies look to avoid having to share ownership of those assets now comcast says it expects to complete the transaction before the end of october it needs more than 50% of shareholders to agree to sell their stock. tyler? >> thank you, julia. >> and we want to ask you about another deal here, julia, about sirius buying pandora. it's a big deal. >> that's right. >> tell me about it. >> big deal. siriusxm's $3.5 billion acquisition of pandora will create the world's largest audio entertainment company. it's an all stock deal expected to close in the first quarter of next year and builds on sirius'

15% stake in pandora it already had. this deal combines sirius' 36 million north american subscribers and 30 million trial users with pandora's 7 million monthly active users of its ad supported service and 6 million paid subscribers it aims to expand beyond cars, diversifying with pandora's add-supported model and referring trial listeners to pandora if they don't want to pay for siriusxm together the companies hope to better compete with apple music, spotify, amazon music and google's music streaming services the deal does have a go shop provision, which allows pandora to talk with other companies about a different deal we'll have to see if anything comes from that or if this deal closes early next year >> a lot of big news to cover. julia. thank you. let's dig deeper into these media mergers. joining us is win view executive chairman great to have you with us. get your take on these things.

let's start off with the move by our parent company, the winning bid for sky. given the price, do you like this deal? >> it's the right deal it's the right way for this whole set -- >> i asked you, given the price, is it the right deal is the answer still yes? >> it's a big price. it's $21 billion premium over what sky was trading at prior to this whole process but look, it's more valuable to comcast than it was to disney. it's a great win for sky and fox shareholders you've got a lot to prove when you're effectively buying an asset like this at 14 times where it's basically one-way satellite distribution, one-way linear channels. but in the scheme of all the strategic issues at play, this is far more valuable to comcast than it was to disney, and quite

frankly, i thought this was a crazy thing for disney to try to own, relative to what its core business is all about. >> nathanson makes the point that the ebitda takes it to eight times anf comcast invest more heavily in the united states where the competition in both wireless and streaming is much more fierce. i'm going to key off the words you used linear distribution. one-way satellite distribution i'm going to ask you again was this worth the price >> well, i have never been a believer that the sky asset is an easy ticket to becoming a global ott provider of the scale of netflix but it is 23 million subscribers. it has a blossoming ott

business and if your core business is what comcast is, owning distribution platforms and owning channels and how the combination of the two can create more value, they are the right owner of this asset, and they're the right ones to be able to drive that value did they get a good price for it no but they got a price that i think if you believe that they have the ability to grow an international business off of this, where they're otherwise locked into the united states, comcast comcast unleashed as a global player, you can certainly get to a growth potential down the road that makes this a worthwhile transaction for them. >> what is the -- at its core, what is the real value of these assets in other words -- or where is the real value it would seem to me that satellite distribution is probably not it, but something

else then must be. so what is it? >> well, if you look at all of these companies, disney, fox and comcast, as having ambitions to get into a different level of business and the linear channel business they're in today. but being in a position that they are needing to build upon their current expertise. sports is critical to all these companies. fox has defined itself going forward as a sports and news service. disney is with espn and now with the espn plus service, all about sports comcast obviously a huge sports position and they pick up more sports potential with the important sports assets that sky has disney also gets some significant sports elements out of this transaction with the star and india properties, which give it some major beachhead in

terms of sports in asia. and i think my prediction is that fox is actually going to buy back the regional sports channels that disney just effectively bought, but was forced by the justice department to give up and i think sports consolidation within fox will be a even bigger part of their future going forward. >> all right tom, thanks so much for your time great to get your take tom rogers of win view. >> thanks for having me. a number of other big companies linking up, as well. microsoft, s.a.p. and adobe making a deal. we'll tell but that. and michael kors apparently close to adding an iconic fashion brand to its portfolio we've got all of tt d rehaanmo coming up on "power lunch. but which ones target your goals? it's not about quantity. it's about quality. no trendy stuff. i want etfs backed by research. is it built for the long-term? my reputation depends on it. flexshares etfs are designed and managed around investor objectives.

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let's get a check on the markets. the dow is on pace for its worst day. the s&p and nasdaq lower for a second straight day. we're talking about less than 1% losses across the board here weighing on the dow, dow, dupont, procter & gamble and johnson & johnson. and led by shares of jd.com. mkm lowering the price target on jd this morning. now let's get to sue herera for a news update. >> thanks, melissa here's what's happening at this pou hour we begin with the white house releasing a statement at the request of deputy attorney general rod rosenstein saying, quote, he and president trump had an extended conversation to discuss recent news stories. the two will meet on thursday

when the president returns from new york to washington that from sarah sanders at the white house. president trump arriving at the united nations this morning, alon secretary of state mike pompeo and u.s. ambassador nikki haley. he repeated his support for supreme court nominee, brett kavanaugh. >> he's a fine man with an unblemished past and these are highly unsu unsubstantialed statements judge kavanaugh is an outstanding person i am with him all the way. >> pope francis arriving in latvia on the third day of his four-day trip to the baltic countries. this to mark the 100th anniversaries of their independence, and to encourage the catholic faithful. you are up to date that's the news update this

hour melissa, back to you. >> sue, thanks sue herera. a big interview on cnbc today with jpmorgan's jamie dimon. what he's saying about the road esead for the u.s. economy do he see any major potholes stay with us

a major shake up in the s&p 500 today. a new sector and a lot of big names moving into it dominic chu joins us to explain what this means for the markets and maybe your holdings. dom. >> absolutely, tyler as we look at the s&p 500 communications services sector, that replacing the telecom services sector, which before only had three real stocks at&t, verizon and century link as you can see here now, that communication services sector is one of the better performers so far today. it's just moved into positive territory. the reason why we care so much is because many of the large-cap, mega-cap, internet, media and tech companies are moving into this sector. if you look at some of the names in the etf space, that tracked the whole thing. we do have a series of spidr services also the xlk, same for

technology and the xly for discretionary. these have been reweighted, because folks like alphabet, the parent company of google and also netflix and also with other names like facebook and twitter are all moving from various sectors in technology and, of course, in discretionary into this particular communications services sector. and i would say this, contessa guys, this sector, this communications services sector, now goes from being the smallest sector in the s&p 500 to being the fifth or sixth biggest at this point so a substantial move, especially for a lot of index-related investors. back to you. >> thank you. jpmorgan ceo jamie dimon speaking with our jim cramer earlier in a wide-ranging interview. he says he's bullish on the economy. >> the economy is quite strong and it's grown at 3% it has been now for a couple of quarters and looks like that way. there are no great potholes. that may very well continue. >> here are some areas he says he's keeping an eye on

>> there's friction out there. always friction. if you look at the newspaper any week, month, there's tons of friction and it's mounting brexit, qe, argentina. we don't know the full effect. so, yeah, we keep our eye on that it may not derail the economy. >> dimon also weighed in on the battle over trade. >> if people start reducing investment, people start moving the supply chains around, that we have seen moves the markets a little bit and so -- and the fear that the skirmish may become a war. so we really don't think it's a great way to go about it it could easily offset some of the benefits you've seen from regulatory reform and tax reform >> let's bring in an economic policy analyst at the american enterprise institute and jared bernstein, senior fellow and former economic adviser to vice president joe biden. both are cnbc contributors good to see you today. let me talk to you first, jim. when you hear jamie dimon say there is no major potholes

coming, even though he calls the brexit and other issues potential friction, do you think he's right that we have avoided major obstacles to continued economic growth? >> i'll tell you, maybe it's the contrarian in me whenever i hear someone be sort of that, you know, placid about things or honestly hand-waved away some of these problems, particularly trade, i wonder what's coming, what's going to happen next. i would not be that sort of tranquil about the impact of trade. he doesn't call it a trade war but when you have tariffs, i think having tariffs on the entire trading relationship between the united states and the other biggest economy in the world, that may not be a war, but it's pretty darn close to it and i'm concerned about that. >> you know, jared, we've seen not only jamie dimon, but a lot of ceos sort of downplaying the risk that the trade war poses to the american economy what are your thoughts about how you enter into that calculus >> well, i think the way jamie explained it is actually the way

i think about it there are two forces in play here one is the direct impact on a very large $20 trillion economy. and so if you consider $200 billion of taxes on chinese exports to us in goods, that's less than 10% of our goods imports, and then if you factor in the 10% tariff and th goods, can trick out an impact on consumer prices that is pretty small. maybe ten basis points that's not nothing, but it's not, you know -- it's not really much of a whack. but then there's this other part uncertainty, where is it going the sort of stuff that's really kind of shaking up the market today. the kind of daily noise out of washington that's concerning i don't see any of that derailing the economy. so i'm with dimon on that. but i do see it as certainly, you know, headwinds that they don't amount to -- they're not going to offset the tail winds,

but they are headwinds. >> dimon was in philadelphia to talk about opening these new branches and underserved communities. and he said, look, i'm not doing buybacks instead i'm expanding and i want investors to understand that there will be a return on this investment but it's not going to be overnight. do you think that we're going to start seeing a shift to companies being able to plan out a little longer-term, jared? do you think this is a model that other companies will follow >> boy, i really hope it is. i mean, i don't have as much against buybacks as many other progressives however, i do take the point that in many cases, it's not going to feed into investment the way even dimon said it probably would in many cases, it just enriches those who are already at the top of the income scale. so i think the kind of short-termism versus that investment outlook that dimon was talking about is too rare. i was glad to hear him say it. i'm concerned it's not as pervasive as it should be. >> i was really interested too to hear him talking about the skills gap, and one way that the

bank is dealing with it is, for instance, to get people into these jobs where they're earning a decent salary as bank tellers and that that's the start of the ladder i've been talking to a lot of ceos that are having to think outside the box if they want to get the skill talent jim, we just heard from the dallas fed that said, look, if we don't get more workers into texas, and dealing in our oil industry, we're going to be in real trouble here. how high on the list of obstacles or potential potholes the economy will see is this issue of a lack of skilled workers for the jobs at hand >> i'll tell you i would love to see as much sort of policy focus on that issue as things -- as much as we've talked about, you know, corporate tax reform or concerns about the deficit. making sure that we have the kind of work force we need so the economy can continue to grow i think that is really sand in the gears and kind of a really potential headwind for the economy. and so we absolutely should

focus on doesn't get as much attention. some people think that's a boring thing and i'm not sure if jamie dimon mentioned it, but immigration is part of that that's one of our great advantages and absolutely something i would like business to push policymakers more on to make sure we have that pipeline of talent coming into the united states. >> jared, as i think about my own life, the slippers i wore this morning were made in china. the baseball glove i bought for my son two weeks ago, made in china. the golf shirt i wore yesterday, made in china. if those prices go up 2%, 5%, it's not going to hurt me.ss disposable income than i do. but there is a knock-on effect, is there not, that these tariffs could disrupt supply chains and cost jobs in the united states that are involved in distribution or design and so on and so forth that's number one. number two is, how much damage does the trade collision war, spat, how much damage does it do

to the idea that the united states and china on certain strategic matters may well go, not from being coopers, but to being adversaries? >> well, let's work backwards. so the geopolitical risk between us and china are nontrivial. but i don't think they're going to show up militaristically. i think where sthey show is whee china engages in the opposite of the isolationism that trump is bringing to our international policy china is looking outward china is making -- look around the corner kinds of investments. they're trying to move up the scale in terms of their advanced manufacturing. don't think of china as just putting together consumer electronics in the future. that's not what they're going for. and they're vesting big-time in that and they have the money and the communist government to do so. so i think our isolationism is a negative and that gets to the first part of your question again, if i look at the direct impacts, especially in an

economy that's growing at 3, 4%, just in these last couple of quarters with an unemployment rate that's very low, i don't see these headwinds as showing up in the macro statistics but, yeah, you're certainly going to find groups of people who have been hurt certain parts of the country who have been hurt and in a way, trump is strategic here, because he's applying what i think is very unfortunate trade policy at a time when the economy can sustain it in ways that -- macro economically, we won't see it but, yes, there will be places where it's felt, no question >> yeah, listen. i think it's very difficult to model what it means to sort of disentangle the american and chinese economy. and at the same time, really try to roll back lobalization, as we mentioned trying to repatriot the supply chain to the united states again, sort of a static analysis of the impact of these trade deals, of these tariffs, saying it's 10%, $200 billion i think that -- i think you need to do a dynamic analysis

i think it's very open-ended and very uncertain and talk about economic policy uncertainty. i think that's the very definition. >> james and jared, always good to see you thank you. >> thank you. much more of jim cramer's big interview with jamie dimon coming up at 6:00 eastern on "mad money." an iconic fashion brand could have a new owner those stories coming up on "power lunch."

a big merger monday today. mike e michael kors close to a deal to buy versace for $2.3 million courtney reagan. >> he's made no secret to the effect he's shopping for brands to add to the company's portfolio after last year's

$1.2 billion purchase of jimmy choo lauren hersch has confirmed reports that michael kors is buying versace, though no official announcement has yet been made. reports suggest that kors could pay $2 billion for the fashion house that for the last year or so at least considered going public if the deal goes through, the versace family would remain involved, though unclear to what extent jimmy choo was really kors first acquisition into a quest to become, a quote, global luxury fashion group. it's a phrase that john idle used, noting the company's focus on international fashion luxury. michael kors, like u.s. competitor tapestry, both looking to expand their companies into multibrand houses, like the european luxury conglomerates, rather than the mono brands that each began. the difference, though, so far is that tapestry has remained focused on u.s. brand acquisitions buying both american-born brand

stuart weitzman and kate spade whereas versace would be the second international purchase. >> we also want to ask about the sears news today the ceo sort of sending a flare. >> that's right. this is a very different story than thestory. so basically eddie lampert is trying hard to avoid bankruptcy. however the stated goal is to return to profitability. that's interesting way to put it seeing as it's been a long time since they have seen that. most agree sears has been in a state of restructuring for years as stores have been sold off eddie lampert and his hedge fund have gone through many financial engineering maneuvers to keep the company running. however lampert personally owns 31% of the shares. the hedge fund he runs owns 19%. the lateste efst development isn effort to lower sears 5$5.6 billion in debt to 1.24 billion.

here's the proposal it suggests selling off 1.$1.75 billion in assets, like the kenmore brand, sears home services, then selling another 1.5 billion in real estate, this would be stores, and they would be leased back to sears, converting 1$1.1 billion of debt into equity. that would lower sears annual interest payments to 88 million from 439 million the company still losing money it's not been profitable in more than seven years time is running out. 1$134 million in interest is du october 15th >> if you reduce the debt payments to the 88 million, would the company be in the black? >> no. >> so why keep it going? >> they haven't been profitable in more than seven years why keep it going? that's a good question i think everybody is thinking the inevitable will happen and eddie lampert is siphoning off

the cash while he can do it. >> jon fortt is live at the microsoft conference in orlando. hi, jon. >> it's a new kind of coalition of sorts led by microsoft, satya nadella bringing two more ceos on sgeta we'll talk more about what they said after the break

microsoft, adobe and s.a.p. joining forces to help company manage data, they're calling it the open data initiative jon fortt spoke to all the ceos and he's there >> i don't know i've seen one quite like this in a long time if ever. these three companies together, more than $$1 trillion in marke cap, most of that from microsoft, they're forming this sort of coalition. i say sort of because they still all compete in certain edgeways, but this open data initiative seeks to say customer, the data belongs to you you should be able to mine it no matter which platform it sits on they argue now if you have some data with microsoft, some with s.a.p., some with adobe, certainly google, facebook, it's way too hard for the customers

themselves to grasp all of the data if you're going to talk about open data, security is a concern. i asked satya nadella about that he said trust is important >> what is foundational here is trust. in other words, ultimately customers will decide. and compliance with their own customers trust in them is also going to be key. if you think about it, one of the top considerations for anything out on customer data is privacy, and regulation around privacy. >> now, these guys are more polite than perhaps some other tech ceos, so they're not calling out the competition explicitly i'll let you know who they're talking about, adobe, more and more they're going head to head with salesforce. that's who adobe is aiming at with experience cloud. you have microsoft versus amazon when it comes to azure versus

aws, s.a.p. and oracle are tussling all the time. thank you very much. coming up, rod rosenstein, will he quit? will he be fired will he work it out and stay and we'll tell you what is sending this biotech stock up more than 200% the ceo of amarin will join us on the second hour of "power" after this hi i'm joan lunden. today's senior living communities have never been better,

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it's the ultimate he said xi said, from autos to housing to retail a slew of industries could get hit hard as tariffs go into effect today what it means for you and your money. and a new study shows a fish oil capsule from amarin is su successful of reducing heart attacks and strokes. and the roar of the tiger, the big cat winning his first title in five years. his historic ranking rebound, the eye-popping television ratings, the impact on the game and merchandise sale

the second hour of "power" starts now ♪ welcome to "power lunch," i'm melissa lee. china tariffs weighing on sentiment. this is the biggest drop of the dow since august 10th. we're looking at a lost of 170 points points on the s&p 500, down about 10 points nasdaq up 4 points look at oil stocks jumping as crude and brent rally. brent hitting 81 a barrel for the first time since 2014. a good day for the semis led by amd, rbc giving the stock an outperform rating today. ge, this is worth noting, hitting a nine-year low in today's session. much more on that story straight ahead. >> i'm contessa brewer

we begin with washington and a lot of questions around the future of rod rosenstein eamon javers joins us at cnbc hq a big day for the white house. we know rosenstein went in what's happening >> we don't know what happened during the meeting we know he went to the house he participated in a principles meeting. a lot of high level people the president is not there we don't know exactly what transpired this is not a political science term, but something weird happened today we saw these reports that rosenstein was either going to resign or be fired then we saw this moment you're seeing on video now. look at that video rod rosenstein emerging from the white house and right there is a handshake with john kelly, the chief of staff john kelly the chief of staff knows that the cameras are pointed at that location he knows that there's a national media frenzy about what will happen with rosenstein or not happen with rosenstein he chooses to go out in frame on camera and shake rod

rosenstein's hand. feels an awful like a deliberate gesture by john kelly. >> then rosenstein goes into a meeting where he is stepping in for jeff sessions at this point. so it looks like he just returns to business as usual >> right you hear this all the time inside the trump white house there's rumors someone will resign, getting pushed out, at the same time they're going on with the business of the day and going into meetings where there's speculation about who is in, who's out. they have go through the agenda and bullet points that were to be discussed they have these surreal moments. this is par for the course the question is did they come to some sort of deal about rod rosenstein's fate today or was this a stay of career execution and he this until thursday >> or is it that rosenstein will now meet with the president thursday and really try and explain what happened in those meetings at the justice

department with justice and fbi people where these allegations or these reports of talking about invoking the 25th amendment or wearing a wire came up is that his final court of appeal >> his final court of appear here is the president of the united states. the question is whether he can per said the president of anything the president read the stories, seeing the reaction, getting conflicting advice from people he trusts on whether or not to fire rosenstein. the president knows there's political and legal risk in doing that but he's also frustrated with this investigation. it feels like he's tempted go ahead and fire rosenstein. rosenstein's fate feels like it's hanging in the balance. >> eamon, thank you. a new glimpse at how america's ceos feel about the u.s. economy and the plans they are making for capital spending and employment ylan mui is live in washington with the details >> the business roundtable is out with the quarterly ceo

survey today it shows the economy is still going strong, but trade concerns are reigning in that momentum. nearly two-thirds of ceos surveyed said the tariffs and uncertainty over trade would have a negative impact on capital investment decisions it was the first time that the brt asked that question. just over a third of ceos said trade tensions are having no effect, 2% said they're seeing a positive effect. the index of employment falling nearly 3 points. overall the broad economic outlook index declined nearly two points from 111 po two points from 111 po 11 to 10. however expectation for sales are up and the index is well above its historical average jamie dimon issued this statement, pro growth policies unleashed confidence with an agenda centered on tax reform

and smart regulation the uncertainty around trade policies remains a risk. the survey shows businesses are are acting to that risk in a real way jamie dimon echoing some statements he made earlier this morning on cnbc. if companies are thinking of reigning in plans for capital investment because of trade, they're cutting their hiring plans, what does that mean for this record breaking rally let's bring in brent schutte from northwestern mutual, and eddie perkin from eaton vance management good to see both of you today. eddie, today we have seen declines what is driving it >> i think the worry today is trade. i think investors fears are misplaced. a year from now we won't be able to spell the word tariff i think you need to think in terms of looking at the present in terms of the perspective of the future a year from now we'll be talking about a completely different set

of issues. i know i sound complacent when i say this, but to the extent stocks go down on trade fears, it's a buying opportunity. >> how do you think this all will be resolved if you think a year from now we won't remember how to spell tariff? >> i don't know how it will be resolved, but i think it will be resolved the exact method will be some form of negotiated settlement with china both sides will give in a bit, save face. we'll move forward with a global economy that is interconnected investors will move on to something else >> brent what do you think trade fears overblown? >> i broadly agree with eddie, but the one thing that does concern me longer term is that comment about capex and productivity if companies are looking to decrease capex. >> reporter: that could be one area that would be more intermediate we are at the point in the cycle where we are running out of people to hire we have to increase the productivity of the people we

already hired. i worry if companies do cut off capex that would decrease productivity and lead to higher inflation and maybe make theed they act i think an agreement will be negotiated and if you think about t we've come to a place where tariff concerns are coming down outside of china nafta is out there in canada but we're negotiating there. the eu had a broad agreement on autos that's not been signed yet, but a way to go forward looking at south korea, places like that, we have gone from a place where we were worrying about a global trade war to one more focused on china. >> we were speaking about the uncertainty surrounding deputy a.g. rosenstein and we did see the markets move slightly lower when the first headlines started coming out how high is the bar for you to consider this sort of story, a market story, one that you would make adjustments to your portfolio on

>> i think we're a long way away from that. we'll focus on the fund theals of the companies we're investing in there is turmoil coming out of washington washington can have an impact on the economy. i don't think this story is significant to the markets >> let's talk about eddie, you favor emerging markets why? you favor weak dollar beneficiaries, why when most people think interest rates will go up and that would tend to boost the value of the dollar, not weaken it. >> yeah. i think you always want to look forward. it's easy to focus on the haven't past we're always looking forward, trying to think about what might change, what might be mispriced in the market. there's a consensus around the outlook for the dollar, for the reasons you have given, they're sound reasons. what i found over my career it's difficult to forecast currencies and go down as well as go up if that happens, there's an

asymmetric risk reward from weak dollar beneficiaries, emerging market companies and countries fit that bill. the strength of the u.s. market is something where investors need to look for opportunities, relative value opportunities have to leave it there brent schutte, eddie perkin, both of you thanks. coming up, a new round of china tariffs taking effect today. a look at the impact on autos and housing. and here's a big stock story. shares of amarin up more than 200% don't you wish you bought it friday on news that its fish oil derived drug reduced the risk of heart and other cardiovascular problems could it be a game changer the ceo joins us live. and tiger woods brilliantly winning his first pga tour championship event in five years. a closer look at his win, the impact on ratings and the sport

when "power lunch" continues

welcome back to "power lunch. the latest round of u.s./china tariffs going into effect today. phil la boabeau looks at the im

on autos >> the do it yourself auto remare ar repair and maintenance in this country is huge. many parts bought at an auto zone or o'riley or elsewhere are bought in china and then assembled here in united states. we went to hopkins manufacturing, southwest of kansas city. they are 350 workers they assemble a number of products that have components coming in from china about 2$200 billion in goods tht will have 10% tariff put in place because of this latest round of tariffs auto parts components a big impact from this latest round. keep in mind the u.s.imports about $10 billion in auto parts from china the ceo of hopkins is worried about how much of an impact this will have on his bottom line >> we are very hopeful that this is a short-term issue that the administration will get what they need to reduce the tariffs

or remove them and we can get back to business as normal and not impact jobs. but certainly if demand does go down, it's something that will impact us as well as other employers. >> as you look at shares of the auto parts retailers, o'riley, auto zone, advanced auto parts, keep in mind they will have to raise prices passed on to them by companies like hopkins. to give you a sense of how much prices are going up, this is a car wash brush that right now retails for about $19.95 they believe that ultimately the price will go up to probably about $24.95 about $5 higher once the tariffs are fully in place they go into effect today but it takes a couple months for this to filter through the system >> i would think maybe 5 bucks would make you think whether you need a car brush or just use something in the laundry room. >> that's their concern.

people will start asking do i really need that >> thank you let's get to diana olick and the impact on housing. >> if you love the marble, the granite, the quartz for your home bathroom or kitchen remodel, get ready you're about to pay more. the latest round of tariffs hits about $10 billion of chinese products exclusive to home building and remodeling. a 25% tariff would be equivalent to a 2$2.5 billion tax increase on the industry. tariffs have already hit lumber, steel, aluminum. the new round adds everything from wall and floorboard to light fix chturefixtures, cabi o mosaic tile. this builder says costs are going up so much he has to do something he hasn't had to do in over a decade in business. >> clients and contractors are

setting contracts for escalation clauses, largely because we're not sure how far prices will go north. >> the tariffs will benefit u.s. manufacturers of home improvement products this quartz, we're here at m.s. international, a huge distributor in maryland of all kinds of counterstops and stone. they said because of the tariffs and potential duties from anti-dumping rules, that it may not be worth it to stock so much of this quartz, because it will be so expensive nobody will want to buy it. more of this online at cnbc.com. >> when you think about people who are trying to get into that entry level housing market, how can you flip a house if the costs of the materials make it prohibitive to turn around and make the price affordable as an entry level home >> for the entry level, when you look at new home build, contractors say they won't have the upgrades

you won't do the granite, you will do the cheaper products so you have to take a cut in that in order to afford that first home >> thank you. our next guest calls the white house tariff moves unfair and damaging to american consumers, workers and manufacturers. let's hear from rick helfenbein of american aparaphernalia and footwear association, representing over 1,000 retail brands including ralph lauren, under armour, macy's, target welcome to "power lunch. >> thank you so much for having me i do want to clarify up front that there is absolutely no joy in mudville today. not only did casey strike out, but the government taxed his baseball glove it's not funny it's not fun half of the imports coming in from china will get hit with tariffs. they gave us six days notice for this and where will we go think about it

41% of all apparel coming into the united states comes from china. 72% of all footwear. 84% of all accessories, which includes handbags and luggage. where will we go we'll get hit with this tax, some of your previous guests say next year we won't be talking about it that's not true. this has to go away. it gets baked into the system. people start leaving china, which maybe that's the goal. maybe it isn't but once they move demand and supply don't match, prices go up sales go down. jobs get lost, this is a very difficult situation. i'm surprised today that the dow reacted so modestly. people don't realize the impact that this will have at retail. this will be devastating >> some of us have noted the same sort of modest impact on stocks over the past several weeks. thank you for asking my first question, which i didn't even get a question to ask.

but you answered it. what i want you to do, a lot of people who side with you on this dispute say that these tariffs are ultimately going to cost american jobs. i'd like to have you explain the transmission mechanism for that, because i think that the people in the white house, who favored these, believe or have sold them in part on the idea that these tariffs are going to cause jobs that were lost to overseas manufacturers to repatriate here why do these tariffs cost u.s. jobs how? >> it's very easy to explain the supply chains are complex, they've been developed over years. they're designed to bring the best value to the retail consumer it's a system that works you try and juggle that system, you immediately bake inflation into it. people scrambling to leave china, trying to go elsewhere to

place goods puts enormous pressure, other countries raise prices, we can't compete therefore prices are going to go up when prices go up, demand goes down when demand goes down, people start getting laid off you know, there's some worries here that people are not exactly thinking of. you know, what happens if the economy in general goes south. let's say maybe a year from now. millennials like to shop on their phones they do everything on their phone. what's to say they won't put a sell order in immediately on their phone, the market starts to go down you know what saves the market over the years the first thing coming out of recession is people go and shop. the last time they bought low-cost goods coming out of china. where will they go this time there's no salvation prices will go up. they will stay up, and any downturn in the market will be harder to recover from >> all right >> this is a bad move.

>> thank you very much for your perspective today. rick helfinbeim. coming up, shares of ge hitting a nine-year low, can the company turn around or should you steer clear of the stock "trading nation" is next

welcome back to "power lunch. it's time for "trading nation. check out general electric shares getting hit again today, down about 4%. touching their lowest level since 2009 is there any relief in sight for ge ari wald is with oppenheimer, and gina sanchez, they are both here to weigh in on this charts are ugly, any entry point at this point? >> they are not. no relief in sight is how we have seen it the stock has been on our sell list for over a year now there's no reason to take it off. ge is in a clearly defined falling channel over the past couple of years, now eventually breaking lower again the big level i'm watching it

$8.50. this is the stock's 2009 low really amazing to talk about that level when you consider the s&p 500 is up about 300% over this same period talk about under-performance stay away. >> wow gina, that is an extreme potential outcome what do you think? cosmetically the stock could be seen as cheap. a few analysts are recommending it now does it seem at all washed out to you >> look, there are a lot of no negatives, we got a new negative today. so in addition to sort of the unfunded pension liability, the lack of cash flow, the legacy insurance business that has been losing money, you have now this turbine issue that is affecting the power business ge has some pluses they have a great aviation business, and those government contracts are not going away and, you know, they also continue to pay a strong dividend if that dividend gets cut,

that's a negative. it's challenging i think right now it's trading at option value. >> yeah. it's about a sum of the parts, and there's a lot of argument as to what those parts are worth now. thank you very much. for more "trading nation" head to our website or follow us on twitter. coming up, our next guests say tariffs are not biggest worry. the ceo of wd-40 joins us live to explain why and what he does worry about. "power lunch" is back in two minutes. now the latest from tradingnation.cnbc.com. traders short stocks when they think they're going lower the number of shares sold short is called short interest short interest is often used to gauge market sentiment a rising short interest can mean investors are becoming more bearish on a company however when short interest reaches extreme levels, it can often be a contrary indicator

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hello, everyone. i'm sue herera here is your cnbc news update.

president trump at the united nations taking part in an event to discuss the world's drug problems he said global deaths from drug use has jumped in the last 15 years, but if the nations of the world work together countless lives can be saved >> the united states announced a global call to action on the world drug problem the call is simple, reduce drug demand, cut off the supply of illicit drugs, expand treatment and strengthen international cooperation. dozens of protesters gathering outside the capitol hill offices of republican senators susan collins of maine and jeff flake of arizona, this in hopes of pressuring them to vote against judge kavanaugh's confirmation and prince harry and wife meghan markle attending an awards ceremony for young

coaches. before the event the two headed up two separate teams of net ball, it was team duke versus team duchess after the game, harry gave meghan a bit of a hug. look at her. all right. that's the news update this hour back to you. >> they're always on the same team, right? >> always. there is no deviation on that front. >> exactly let's check the markets right now. red arrows acrossthe board wit the dow down 168 points. the nasdaq down by 2 the home construction etf hitting an 11-month low. owings corning, leading to the down side, and caesars is now rated a sell. the oil market closing for the day. and let's find out the details from jackie deangelis. >> hi. some big moves in oil today to the upside breaking through some

critical levels. 72 for wti, 81 for brent that's the november contract the conversations over the weekend in algeria did not produce consensus. the largest producers like the saudis and russians could raise production but it wouldn't sh easy since they just upped their numbers already. there are also different grades of crude, with the iranian crude poised to come off the market, people are buying that, iranians are buying other grades, and all of that interest has boosted prices. from oil to grease wd-40 is celebrating its 665th year as a company. stock up 46% since january the company is aiming to grow net sales of its product line to 5$530 million by 2025 so how is a 65-year-old company thinking about innovating when it has to worry about offsetting tariffs, rising energy prices? let's bring in president and ceo

of wd-40, gary ridge great to talk to you today >> great to be here. >> tell me about what is driving growth and what are your concerns, if any, about tariffs? >> 65 years has been great, and what is driving our growth is lots of memories to be made with wd-40 around the world 65% of our business is outside of the united states and it is the fastest growing part of our business know it's a very well-established brand in the u.s., there's lots of squeaks around the world that we still have to silence. we have just a magnificent team and tribe of people who get up every day to create those memories >> i know you source and manufacture the product as close as you can to where people are buying it. so if tariffs are not the big concern, is it the price of oil? >> well, oil is always something that we had to manage. we managed it from $39 a barrel to $139 a barrel

certainly as oil flux waictuate, it's something we need to be aware of we believe we have a system and process in place that allows us to manage through the good times, also through the times that are not so good >> i would imagine in trying to get more customers to use wd 40 you're trying to advertise to them novel uses of wd-40 what are some of your favorite stories, things you would never imagine wd-40 could be used for but where it's come in handy. >> on our website we have 2,000 uses so everything from removing grease and crime from stainedless steel on the barbecue to wide uses like one which is weird was a burglar was caught in an air conditioning duct and the burglar was naked they sprayed wd-40 to get him out. >> he slipped right out? >> absolutely. yeah yeah >> i would think, you know, naked burglar in the ac vent

would be one of the oddest uses. you have the advantage of having a product that i bet is in 90% of american households do you know what that percentage is >> we're in 8 out of 10 households which is important to it's what is really important to us is most of our consumption comes from the industries and trades not just from households so as we go out to the world and we sell our product to companies that manufacture and make stuff -- germany is the second largest diy market in the world and we've been growing our business there what's exciting is over the last 20 years if you're an investor in our company,would have had total shareholder return of just on 15% in the last five years it's been 27%. the real true reason is our tribe, our employees we have a 93% employee

engagement, which is triple that of the gallop measure of engagement >> do you have a problem with the skills gap do you have a problem of finding members of the tribe to add? >> no, we're a place where people want to go to work because we care about them, we're candid with them, we hold them accountable and we're responsible. >> garry ridge, congratulations on 65 years of wd-40, president and ceo of wd-40 you've been with the company for a long time, right >> 31 years with the company 21 years as ceo. it's been a fun time >> good for you. thank you for joining us another use was used by a bus driver in asla to remove a python coiled around the engine of a bus >> if you have aspirations of become mcgiver, you need wd-40. >> we have a news alert on google josh lipton has it tyler, google is adding some

new features to its search engine google this month is celebrating its 20th anniversary so, for example, some new features, activity card that will show up at the top of search results showing pages you visited as well as other queries. theyintroduced something calle collections where you can save content from that activity card and google will use that to make recommendations. it looks like image search is getting some enhancements. so there will be tags that show products and other images so you can find what you're looking for faster underpin pg the underpinning these changes is the time and money they invested in ai. google search is in some sense in the political cross hairs you have republicans, including the president, saying google biases search results to the right, that's a charge which google rejects google adding some new features to its search engine today

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shares of amarin soaring today up more than 200% after a study showed its fish oil derived drug reduced heart problems by 25%. meg tirrell has the exciting details. >> it is a huge result for the fortunes of amarin as well as for medicine and options for treating heart disease the number one cause of death in the united states and worldwide. amarin's drug vascepa is already approved to lower a type of fat in the blood sales last year were 1$180 million modest when compared to lipitor. new clinical trial results today so he vascepa reduce heart attack or stroke by 25% when given on top of statins. that's more than wall street was expecting which is reflected in the stock price today. the drug is derived from fish oil but it is a highly purified

of the omega free acid known as e.p.a. some doctors still have questions about the result which will be presented more fully in november, but john boris of sun trust says he sees a market of the drug of more than 30 million patients >> will this news be a game changer for heart patients let's bring in john thero, the president of amarin. >> happy to be here. i hope these results help millions of patients >> when you look at preventing risks, heart risks, you know, your results, 25% reduction, that compares to one of the most exciting class of statins, pts-k9s which reduce by 15%. how can we think of these results in terms of the landscape. >> cardiovascular disease is a huge burden. the number one cause of death in

the united states. also the most expensive area of healthcare people have been working to lower cholesterol for years, but we know lowering cholesterol, whether through stat teins lowes that risk by 25% to 35%. 25% to 35% is terrific, but that leaves 55% to 65% residual risk. our drug focuses on that 55% to 65% residual risk. we believe this is new and important in terms of an opportunity for improved healthcare >> i'm sure a lot of people are looking at this interview intently thinking i want to reduce my risk we should think about not just the 25% reduction but the 25% on top of whatever reduction from statins or pcs-k9 inhibitors >> we're not trying to replace those. >> but you can have a greater rate of prevention

>> exactly this is addressing a different range of risks >> one other thing about this other class of drugs from regeneron and amgen, they cost $14,000 a year your drug is priced at $2,400 a year do you plan to increase the price because of these new results? >> those drugs you referred to are terrific drugs, they address cholesterol where statins are not sufficient by -- which is a bit of a narrower market we think weir much more analogous to statins, we're coming in and the first in a new market we're trying to have our drug be used by millions of patients which means it should be affordable our drug today is priced at a level which is comparable to where statins were priced before they went jenngeneric. >> this drug is already approved for the fda. >> in faints for high triglycerides. so this move into cardiovascular is new for us and important.

>> your sales last year were 0 $180 million are you prepared to ram up production according to your latest statements, 2018 estimated cash 1$116 million what can you tell us about ramping up production? >> we have an excellent group of people working our strategy from the beginning has been that doctors want to see outcomes, data, not just see that you lower bio markers but you lower heart attacks, deaths, strokes. and we now have that we started in the marketplace with a niche market, risks of pancreatitis, but always knew the end goal was to have outcomes data. now we're building up supply we have five years of successful commercial production. we've shown we can do it we have good relationships with physicians we have broad managed care coverage most patients can get the druge pieces in place. we are, as you say, expanding our sales force significantly

here to ftry to educate physicians >> will you have to do a capital raise to do that. >> we ended last quarter with over 1$100 million in cash the chin clinical trial has bee million, $60 million per year that cost will be going down now that the trial is over we're pleased that we were asked to be a late breaker at the upcoming heart association show, as those research and development costs go down, they won't go away, because we still believe in research and development, but we'll use a lot of that savings to plow it into education, sales and marketing >> we have to go, but really quickly you said on the conference call today you're not for sale how do you avoid getting bought? >> we do work for shareholders but there are a lot of companies that are small and don't have infrastructure in place. we already have managed care coverage we already have proven supply.

we already have strong relationships. we need expanded sales and marketing. we'll focus that on which we can control which is growing ourselves. we'll let everything else play itself out >> all right, john, thank you very much for joining us john thero the ceo of amarin and meg tirrell. the whole world was watching including the president as tiger woods won his first tournament in five years. it definitely was not an easy climb back we'll find out what it means for the sport and the sponsors [ upbeat music playing ]

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. >> that's right. there is tiger mania it is something golf fans have not seen in a long long time woods won for the first time his 80th victory on tour you missed that one. this one clenches it right here. listen to the fans erupt

ratings up over 200% from last year good to have you with us >> nice to join you. >> we'll look ahead in just a minute how do youcompare the player you have seen. >> i always said tiger woods when he is half as good as he used to be he is twice as good as anybody else. i wouldn't say he is the player he used to be. tiger woods has a lot of things that most people don't have.

it is the surest best in the history of the game. he has upwards of 90% closure rates. nobody ever handled pressure like tigerwoods. did you expect him to come back this far this quickly if at all? >> not at all. injuries certainly, a lot of unknowns there, emotional and psychological troubles the biggest hurdle for him was this we have seen this affliction, baseball players, darts, it's a death sentence basically for any

athlete. >> every player will be represented. the u.s. says well, some young players, some young blood are a little more passionate and engaged than some of their older contemporaries they are the betting favorites

i don't know why they are tiger and phil pose a pretty big dilemma. they lost six and only eked out a win one time they say if you have two quarterbacks ton team you don't have a quarterback the u.s. team is nowhere near the drivers of the european side >> all right thank you very much. we appreciate your time today.

it begins friday on the golf channel. note the times it's live. you have got to get up early coverage continues saturday on nbc. >> check please is next. alerts -- wouldn't you like one from the market

when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. all right. president trump is meeting with president moon let's take you there live. >> we are in no rush we made more than anybody has

made in ever frankly with regard to innorth korea. i believe that chairman kim and the people of north korea want to see that potential and we will help them to that end the relationship is very good. immeeting with rob roseenstein we'll be meeting and determining what's going on. we want to have transparency we want to have openness i look forward with meeting to rod at this time >> reporter: [ inaudible question ] >> we will have a meeting on

thursday when i get back >> over the next couple of days we are meeting and tomorrow giving a big speech. i'll be back on thursday i spoke with rod today we'll have a meeting on thursday when i get back to the white house. i want to say this the united states is doing better economically than we have ever done before. new numbers will be released i think it will continue this forward