and aks as well as u.s. steel which is letter "x." i like both and bought ak steel and "x" during the show. >> interesting appreciate you bringing that to us. >> thank you, sir. >> shannon, thanks so much for being here stocks are up, dow up 200. power outag power pour -- lunch picks it up. >> we have a deal. president trump speaking about america's new trade agreement with mexico and canada how different is it from the hold one that he reviles and what does it mean for a trade war with china investors like what they're hearing. whatever it is, the bulls are in charge as we kick off the new month, the new quarter the fourth quarter of the year, is it rally on from here until the end of the year? we'll take a look, soaring tesla on news of a settlement between elon musk and s.e.c. and general electric jumping after dumping

its ceo john flannery. we will go inside those moves straight ahead "power lunch" with a special guest next >> welcome back to "power lunch. i'm courtney reagan. new highs and nasdaq 100 hitting record levels. s&p on track for record closing high and dow up triple digits off session highs. it was up almost 280 points earlier on oil prices rallying too fueling the energy stocks. they're the best performing sector this hour led by marathon petroleum. new 52-week highs for microsoft, mastercard, boeing and invidia now to our special surprise. >> i am the special surprise >> you're it. >> or you are the special surprise >> tyler is just a surprise every day. i'm brian sullivan we begin with president trump taking a victory lap speaking at

a news conference earlier about that trade deal between the u.s., mexico and canada. trump says he, quote, pillar of national security is economic security and trade and he called the deal a new dawn for the u.s. auto industry. >> this deal will also impose new standards requiring at least 75% of every automobile to be made in north america in order to qualify for the privilege of free access to our markets >> the president also weighing in on what the deal means for american farmers >> this new deal is an especially great victory for our farmers. our farmers have gone through a lot over the last 15 years they've been taken advantage of by everybody, prices have gone way down, and we're working on some other deals that will make them very happy also but this is a very, very big deal for our farmers mexico and canada will be opened up a lot more than they are now.

>> so what exactly is in this deal the u.s. mca and how does it differ from nafta. >> tyler, there's been a lot of debate whether it's nafta 2.0 or more like nafta 1.5 but there are some notable differences between the new deal and the current one, how significant they are, it depends which side of the aisle you sit on. autos, view scma, 62.5% to 75% to allow cars to move freely across borders and also requires that a percentage of factories pay workers at least $16 an hour those are both changes from nafta. the u.s. also won more market access for dairy roughly 3.5% of canada's market is open to u.s. dairy farmers. canada also removed barriers to trade on milk products that includes cheese, yogurt and ice

cream. those products that president trump mentioned in his speech just a little while ago. now, one of the main goals for renegotiating nafta was to create a more modern agreement the current deal took effect 25 years ago, before the advent of the digital economy and now there is a frailwork pharmaceutical companies will get exclusive marketing rights on biologic drugs for ten years and bans duties on e-book, music, videos and software one other change the u.s. insisted on this comes up for review every six years the idea is to prevent this agreement from becoming outdated as well. they don't want another old nafta. >> a quick question about one of the sticking points in the deal which was dairy. and the president has made a big point that some of the tariffs on u.s. dairy goods were 290% or something like that. what happened to those tariffs in this deal if only 3.5% of the canadian agriculture market is open now to u.s. trade.

>> it means they go away in a limited fashion. a lot of what the president was referring to was tariffs on what are known as ultra fillered milk products and shorthanded by calling it ice cream, cheese, yogurt, et cetera. u.s. producers are concerned they did not have as much access to the canadian market as they would like for those products so that was a main point of contention and that's where you heard a lot of anger from, let's say dairy farmers in wisconsin >> now they will have that access. >> now they will have that access umdz the new usmca. >> thank you >> well, investors like the trade deal markets are soaring today. all three major averages getting near record highs at least at the new york we are tracking it all >> markets responding to that u.s./mexico trade deal but we are off the highs of the day after president trump threw cold water on this idea that a china deal may be next president trump saying it was, quote, too soon for us to talk to china, but we are seeing

those trade sensitive stocks moving higher today and it's worth noting fourth quarter is strong for the s&p 500 average gain of 4% but in the midterm election year it increases to 7% according to cfra this quarter, though is unique there are confluence of head wind s ranging from a stronger dollar, trade tensions with china and india as president trump mentioned. speaking of trade, cal-maine miss the on earnings ceo says green prices are volatile but the imposed tariffss recently have created market uncertainty and down more than 7% on the flip side, the best performing stocks on the s&p, general electric, unexpectedly removing ceo john flannery after barely one year up over 9% praxair, higher as well as we look at higher prices and chip stocks also helping prop up the tech sector, invidia and xylink

up guy, back to you >> thanks, seema, one piece of uncertainty out of the way at least but headed into earnings season should investors keep riding this record rally? let's bring in luca palini and scott ren senior global equity manager. luca, good morning to you. good afternoon, i should say gosh, this day is flying by. we do have this one piece of uncertainty out of the way with the new nafta. usmca. earnings season is beginning and still have trade tensions with china. how should you position your portfolio. >> i think, look, what happened today from my point of view is not really a big deal. i think obviously it shows u.s. administration is willing to compromise i think this may be good news when you look at china the big deal is u.s. economy it's obviously a very important thing for mexico and canada.

for the u.s., i don't think it's a big deal but tells you the u.s. administration is willing to compromise and would be incredibly bullish for markets >> do you think the u.s. economy is strong enough to help propel us forward into the final quarter of the year or see the highs of the year follow forward. >> the u.s. economy is in very good shape the problem is the expectation that incredibly high and this is the same for earnings. once expectation is very high it's difficult to beat expectations and market moves on surprises so from this point of view i don't think you'll see big positive surprises for the u.s. economy. >> you know, scott, we have to forget this deal has to be signed by -- a measure getting through congress. >> a little. >> orrin hatch has already commented on it. throwing it out. >> i'm going to ask this to you. if i ask it toluca, he might punch me in the face italy, okay, we talk about all these other things what's your biggest single risk out there, trade may be off the table now, so what does it become >> well, you know, in my opinion

the biggest risk was not trade to begin with because we put a low probability on a real -- >> that's why i asked about congress. >> to me the biggest potential risk out there is really two of them, the first i would say is global growth and the second is the fed making a mistake, so, you know, most cycles come to an end with the fed making mistake, in other words, hiking rates too much for a given level of growth so i see that as one risk as we look forward but certainly global growth, you know, there is a lot of numbers back and forth are we going to see an acceleration or slowdown a decent global economy, not a great one but certainly a risk. >> so, luca, let me join the battle between you and cot if i might. you say disappointment is inevitable u.s. earnings expectations are overblown. economic confidence is at an all-time high. and now is the time not maybe to emphasize u.s. stocks but to move into emerging markets scott sees u.s. stocks as fair valued but think there's more

room to run. stake out your position. >> well, i think, you know, when you look at the current earnings season, past 25, 26% growth, this obviously after a period of incredibly strong growth in the u.s. and accelerating great. what is important is the acceleration i don't see acceleration in growth and if that's the case and also overvalued i think it makes sense to move away that do exceptionally well to move to emerging markets last five years u.s. stocks up 80%, em in dollar term, zero and i think if the global economy would remain quite strong that's actually the right time to move -- >> let me turn to scott and let you respond to what luca just said >> well, you know, ty, we just recently bumped up our to a favorable rating on em we thought that really the emerging markets fell too far versus the fundamentals that we expect we expect some good earnings growth, better than the s&p 500 if you look at the index itself or the sectors that make up the

index. so, you know, some would argue that that's kind of a catch the falling knife kind of call but i think, you know, what you've seen is stabilization, some stabilization in the dollar and so i think that, you need to look internationally here, u.s. stocks are not cheap and really em looks most attractive to us but certainly the developed international markets, they look appealing as well. >> thank you very much, gentlemen. appreciate the conversation here today. luca paolini and scott wren with wells fargo. >> thanks, guys. on deck, two big stock, two big story, ge bringing in a new ceo. can this guy turn it around? tesla goes back to the s.e.c. and takes the deal musk stays as ceo. 'lfi omove for investors wel ndut stay with "power lunch." are you ready to take your wifi to the next level?

then you need xfinity xfi. a more powerful way to stay connected. it gives you super fast speeds for all your devices, provides the most wifi coverage for your home, and lets you control your network with the xfi app. it's the ultimate wifi experience. xfinity xfi, simple, easy, awesome. shares of ge are soaring this may end up being its single best day since 2015. all this after it dumped john flannery after just over one year in the office flannery, of course, brought in to turn around ge saying he wanted to cut ge down to three units, aviation, health care and power. it sank over the 12 months and jack welch releasing a statement saying when flannery took over

he faced a company in a very difficult balance sheet position and i am grateful for his efforts in outlining a new direction for ge, end quote. the next person to try to fix ge is lawrence culp for more on culp let's bring in frank holland. >> legendary, yes, legendary used to describe culp. others were equally full of praise doing it in a time frame that satisfies restless investors and analysts culp was the ceo from 2001 to 2014 and during that time they handil outperformed the s&p and increased by more than $46 billion. research called it a model of consistency. and that's who has a lot of people excited

he will move more aggressive with a sense of urgency than john flannery. outsider kept coming up. jeff told me he's very confident larry culp will bring reinvention to ge and also the same focus he brought to danaher. a mission and sense of purpose and they believe culp will instill confidence in the stock, something flannery could not seem to do he still has a lot of work cut out for him with ge. >> guys. >> all right, frank, thank you very much. is culp the right person to change things around and what does it mean for the stock joining us is jim corridor at cfra what do you think of this move was it overdue, hasty, the right one, what? >> well, it's clear that the ceo had lost the confidence of the board of directors and investors. you know, one year is not enough time for a company the size of ge and while mr. culp is coming

in now with fresh eyes, like you said earlier an outsider that has fresh ideas and a great track record he still is sitting on a ge that has the same problems it had yesterday. >> how much of the dirty work has been done by mr. flannery? >> well, that's the question what we don't know we've had a number of ne-time charges. we have the $23 billion goodwill write-down and $15 billion accounting write-down last year. if all the bathwater is out, all the bad stuff is out, then mr. culp can come in with fresh eye, expectations have been reset because now we know ge will miss earnings guidance. all of that stuff is out in the open so gets to come in with that reset so gives him a chance to have a little time to get investors excited. >> this news just came out this morning and i heard you use the word "if" a lot. there are still things we don't know are you convinced that a change like this is what was needed could it move you to change your outlook?

you have a hold rating on the stock. investors are certainly -- i guess maybe excited about the hope of something new based on the direction of the stock today. >> yeah, if you're buying the stock today you're buying hope, exactly that ge has been overpromising and underdelivering for quite some time write-off after write-off after write-off and what we need to see, cfra, the company to hit financial targets and start executing to make visibility new again at ge where we can trust what they say is what's going to happen and, frankly, it's going to take a little time. >> you know, jim, i know a lot of investors have said mr. culp has culp-ability but is he worth a couple billion dollars in market cap like we are adding today or is it short -- >> if you look at the exceptional job he did at danaher. fivefold increase and great track of building businesses that make sense. this is different because ge is a turnaround story and danaher

fit together and made sense and ge don't fit together so well with all the parts but gets the benefit of the doubt on day one. >> how long is this likely to take too early to buy the stock expecting that maybe in five years it would double? what do you think? >> well, under mr. flannery i would say more than a year and he wasn't given a year so, you know, certainly it's going to take some more time to identify a strategic direction, he gets a chance to reset the company, maybe health care is not going to get spun off or maybe the parts sold make more sense today. so he getsa chance to take a look at the company. that takes several months right there and to start implementing his vision takes up to a year so it's going to be a while, but in the meantime, they can set reasonable financial expectations and meet those expectations which will give investors and analysts confidence that they know that they're on the right track. >> jim, i think it's only fair to point out he did inherit many problems and only had a year to do whatever it was that his plan was to do. to turn george around so now

that we have a new ceo that's coming in what is the first fire that needs to be put out in order of importance. >> first fire is power the forecast had been terrible over there and part of the reason that they're going to miss their cash flow guide dance -- they have to be met and second thing the balance sheet can't be any more write-offs, if there are we need to know about this with the $23 billion write-down is losing half the stockholders' equity today. >> tyler, maybe -- courtney, i can't remember a company taking a $23 billion write-down that's bigger than the make cap of most companies that exist in the united states. is this a housekeeping literally just getting everything out the door or really did they just wipe out 23 actual billion dollars? >> i mean, it's intangible assets which is not real cash. but if you look at that $23 billion write-down it is tied to

a real item on the balance sheet, stockholders' equity, $50 billion and now about $23 billion less so that's a real world implication for something that is not a cash outset. >> jim, thank you very much for your insight today jim corridore, cfra. stocks soaring as a trade deal is reached with canada. purpose mo much more on "power lunch." geico has over 75 years of great savings and service. with such a long history, it's easy to trust geico! thank you todd. it's not just easy. it's-being-a-master-of-hypnotism easy. hey, i got your text- sleep! doug, when i snap my fingers you're going to clean my gutters. ooh i should clean your gutters! great idea. it's not just easy. it's geico easy. todd, you will go make me a frittata.

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cnbc news. up date sponsored by comcast business. >> i'm sue herera. suicide car bomber targeting a european military convoy in the somali company of mogadishu. several were injured al shabab claiming responsibility. south korean president moon says a strong military is critical in sustaining peace and defended the joint declaration of peace with north korea on south korea's 70th armed forces day. hundreds of separatists blocking the entrance to the stock exchange to mark the anniversary of the referendum in catalonia banned by spanish authorities. they shut down the front door, sat outside the buildings in protest. europe winning the ryder cup over the u.s. by 17 1/2 to

10 1/2 reclaiming the trophy the americans won in 2016. francisco molinari clinching the win in his match against phil mickelson. he had a perfect 5-0 record in the event. the u.s. has not won the ryder cup on foreign soil in 25 years. that's the news update this hour let's get back to the set. back to you guys >> thanks, sue we got creamed this that rye dper c - ryder cup. the markets in the u.s off of our session highs but still seeing a nice rally. dow jones industrials higher by more than 200 s&p 500 up by half a percent and nasdaq composite up by 21 points. health care and tech and discretionary are leaders and tech on pace to close high tesla having the most positive impact you know we'll talk a little more about tesla

that's coming up first we want to head to the bond market. rick santelli is tracking the action there good afternoon. >> good afternoon. tens and 30s are up a basis point on the day, the rest of the curve unchanged. very fascinating pr pro-canada with respect to how the stock market is trading but treasury market really you can't tell that there's much news going on if you look to italy, we're all talking about the tens, indeed we should up 15 basis points but a two-year in italy is almost up double that, 28 basis points you see on the one-week chart. the dollar index having another pretty decent day up a little more than a quarter of a cent and data today but as you see on the one-week chart a post federally starting to hold in all the right technical spots and look at the dollar index from august 1st you could clearly see that all that support down around 94 did hold,

many are now using 95 as the pivot. remember, 95 1/2 is about the midpoint to the biggest moves in the dollar index over the last decade sully, back to you. >> rick, is anybody working there? you watching the cubs? we'll find out tesla shares surging as elon musk settles with the s.e.c. and investors love the news but are tesla's problems really over all the automakers moving higher because the new trade deal don't call it that have that should benefit themo of m stall. we'll tell you why next on "power lunch." >> announcer: "the bond report" sponsored by pimco so they say that ai will put the future in the palm of our hands. that's great. but right now you've got your hands full with your global supply chain.

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will the bulls continue the run? the world's largest money manager readies investors for the fourth quarter blackrock releases its global outlook first on "quosquawk box tomorrow. elon musk and tesla agree to settle with the s.e.c. did mr. musk accept the deal worse than the one he could have had last week or roughly the same >> maybe a smidge worse than one he could have been signing off on on thursday of last week but, look, at the end of the day he still remains ceo and that's the reason it moved higher the terms of the agreement he gives up chairmanship for the next three years, two new

independent directors will be appointed to the tesla board both elon musk and tesla will each pay a $20 million fine. that's knock for elon musk and the oversight of musk communications this is interesting. in light of the news we're expecting in the next couple of days which has to do with model 3 production and deliveries for the third quarter. they're expected to report that tesla is sometime this week and the expectation is that the q3 deliveries will be at least what their guidance was, 50 to 55,000 of the model 3s. over the weekend elon musk sent out an employee email. he didn't tweet this out he didn't let everybody know he sent an employee email saying if we go all out tomorrow we will achieve an epic victory beyond all expectations and, guys, they sent out an 8x. tesla did with that email and all the time i've been covering tesla i can't remember the last time this they put on 8k regarding an maim or a tweet or some kind of communications from elon musk so it looks like the

message is getting through, you are going to have to follow the letter of the law a little closer, just can't tweet whatever you want to tweet. >> in the eyes of the s.e.c., phil, what was his greatest sin? >> saying that he had funding secured. you know, at $420 a share and, look, if you believe their complaint, and while he's not going to admit any guilt here, if you believe their complaint, he had nothing lined up. he thought he had some notion that's could get perhaps the saudi investment fund to come in at $420, there was no term sheet. there was nothing signed that's ultimately the sin there. >> i see all right, big interview coming tomorrow with ron baron on "squawk box" one of the most successful investors out there the trade deal, the usmca, usmca, what does it mean for the carmakers? >> there is a bit of a relief rally especially for the big three who have large footprints both in canada and in mexico

let's look at the numbers in terms of what will change for them really not a whole lot if you look at where they were last year, they -- automakers ailing to, not just the big three imported about 3.98 million vehicles from mexico and canada now have a cap at 5.2 million and have room to grow how much they build overseas and those two countries and then bring here. the regional content will go up to 75% but the expectation is that, look, they can do that there are a lot of parts imported via china into mexico in particular. that part is going to be closed off a little bit and, remember, mexico and canada, the two largest countries that we receive vehicles from in this country almost, what, 23, 24% of the vehicles take a look at shares of general motor, it is the number one importer of really production automaker, if you will, in canada and mexico, building about 1.19 million vehicles in those two countries

last year, the majority of those being sold in the united states, right behind gm, fiat chrysler and, guys, you know what stands out about them, they did not slow down production in mexico when all the saber rattling was coming out, boy, we'll tax them at 25%, nope, they didn't slow down production at all and this is a good deal for those guy. >> all right, phil lebeau, thank you very much. we'll see you soon. all things auto from the impact of the trade deal to the future of tesla to what else he wants to talk about is paul, editor with the rev institute for automotive institute the market is reacting is this nondeal trade deal hasn't been signed yet is it as good for the companies as the market is making it out to be today? >> well, sure, it is you know, when all is said and done, more was said than was done here. not a lot will change to be honest with you. if the whole idea was -- >> shhh.

>> shut off imports coming back into the united states and have a whole new raft of automobile factories built in the u.s., it's not going to happen as phil noted the import caps are a lot higher than the current levels from canada and mexico, so this is -- this relief rally from the auto stocks is quite warranted. now, look, this new deal nafta 2.0 or whatever it's called might have a bigger impact on other industries, but the impact on the car business is going to be fairly minimal. >> yeah, because -- i we got the caps we talked about the onething to like at new jobs have to be 45% of new jobs have to be at 16 bucks an hour or higher. win for entry-level workers in i've heard key states like pennsylvania and ohio and wisconsin. so your point is it keeps things going. it may not add a lot of net new but not shutting things down

either. >> no, that's exactly right and the truth is wages in mexico as that economy expands are going up so, you know, this is going to level out maybe not immediately and not fully level, but the gap is going to decrease and, frankly, wages are, you know, only about 20% of the cost of building a car anyway so this is not going to be a huge deal. >> are the prices of cars made in the north american trade zone going to go up either as a result of this deal or as a result of steel and aluminum tariffs that remain in place for now at least. >> well, definitely as a result of steel and aluminum tariffs are big and i think what the administration is probably counting on is that they'll be spread out over so many vehicles that people won't notice a couple hundred different -- dollar difference in the price of their car, well, good luck with that, i'm sorry new car prices are already pretty high. and the truth is is that the

steel and aluminum and components things are going to be the real driver of price increases and the average american will feel that. >> paul, does anything in this new deal suggest to you more manufacturing jobs will be brought into the united states at one point president trump was very focused on that but phil pointed out that none of the auto companies shut down their production in mexico or in canada at a fear that there was going to be a big tariff or increased cost on bringing those cars in. >> no, this is not going to produce a flood of new auto jobs in america, the united states of america, absolutely not. there's just nothing in it that suggests that, period. >> let's move on to tisdale if we can all right. they put out an 8k with their email. most grown-up company was have done that but they march to the beat of their own drum that's probably why it's the only successful all-electric car

company that is existed since, what, 1898 okay so do you think that tesla is at risk of losing some of that magic, right, the muskian special sauce the company needs? >> well, again, by the way i think it's 1998 not 1898. >> no, the first car was all electric, i didn't mean 1898 >> right i understand look, i think the issue here is really as long as elon musk stays as ceo, it's hard to imagine much of anything changing in that company you know, he might behave, quote, marginally better according to the s.e.c. rules, but he's a pretty-willed guy and usually gets his way he's pretty much getting his way on this. i can't imagine a new chairman in the new, quote, independent board members will not be very simpatico with elon musk so, you know, again, this is sort of like the new trade deal, when all is said and done, you know, much more was said than done. >> and he remains the largest

shareholder, correct. >> yeah, absolutely, so all these things, i mean, we all know where the power is at tesla and that's not going to change. >> all right paul, thank you very much. paul ingrassia >> i came from a briefing with jared kushner and lighthizer robert lighthizer pushing back on the new nafta is a warmed over tpp arguing this is, in fact, a better deal than tpp was with the president saying it was better in terms of the lane provisions in here, in terms of currency, in terms of the digital economy, saying in every aspect, this is better he says he doesn't want to brag about doing a better job than his pled sesers, that's not fair, he says but this is better than tpp across the board and suggested that they're hoping for bipartisanship up on capitol hill when it comes to approving the deal

lig lighthizer saying they would like the provisions on the environment and like the provisions on labor and saying ultimately there are no poison pills in this deal for democrats to object to so hoping for a bipartisan outcome on the hill we'll see if that happens and then i had the chance to ask jared kushner about his father-in-law and his negotiating style and asked jared about the president's harsh rhetoric and sometimes insults toward foreign leaders during the course of these negotiations and i asked him, you know, is that business or is that personal? what kushner said, the president's instinctive and also very deliberate. he knows the goal he's going for and knows the outcome he wants and is very focused on getting to that outcome so by implication he says some of those insults and jives we see from the president in terms of these negotiations and foreign leaders are tactical by the president to get to a result

that he's looking for even though he's very instinctive in the moment tyler. >> does this agreement have to move through congress with simple majority or because it's not a treaty, it doesn't have to have two-thirds. >> i believe it's simple majority but have to get back to you on that. >> thanks, eamon. broad market rally, s&p 500 traded above its record closing high, energy, material, industrials leading the way higher, energy higher by 1.5%. coming up we'll go to the new york stock exchange and get a trader's take and michael lewis has a new book out he'll join us coming up on "power lunch."

welcome back to "power lunch. fourth quarter starting out with nice gains as the market responds to the new trade deal can investors expect this record rally to continue? let's bring in steve grasso,

fast money trader and director of institutional sales steve, thanks for joining us we have this deal with new nafta and nafta 2.0 or nafta 1.5, whatever we want to call it here does it give us any hope does it give the market any hope maybe we can work things out with china is that part of what we're seeing here today? >> i think it's 90% or -- i'd even be as bold as to stay 98% of what we're seeing here today. it doesn't matter what the deal is what you call it, it's clarity so the market loves clarity. something tangible they keep their hands on, portfolios on. where do they want to be end of quarter, end of month, last week so now it's a reset. chase for performance going into year end everyone is sort of setting it up with energy, materials, industrials, those have been performing well. those have been the trade sectors, the space you want to invest in and those are the ones knee-jerk reaction what rally today but i do think tech will

make another appearance back at the forefront going into year end where you've been getting growth from. >> do you think it's big tech? the f.a.n.g. names that continue to outperform here going through the fourth quarter >> you know, i think it's -- you would -- those would have to drag every other sector, every other space within tech and the subsectors with it but you could get semis going again and hardware companies going again and with the switch-up with the technology, etfs and going into that consumer services a new dynamic going into year end where you see netflix will still catch that bid but see the other traditional media companies that aren't tech but have a tech angle will rally amazon i think will keep its strong foothold in the technology space that will be your growth name. they could take a stutter step backwards but i think ultimately is where you want to have your money looking for growth. >> let me ask our final question outside the united states earlier on the program some of

our guests are starting to look at emerging marketing thinking maybe the worst is behind us what are your thoughts there >> so, i've been early and this has been a joke with wilf and sara put some money into turkey for my kids and was early and down 40% for the year and just got pummeled once again so i do think on the risk/reward buying into emerging markets is okay. is it going to be a quick, you know, leap forward going into year-end, i don't know i think we'll have fits and starts, but i would say on a relative basis we've seen what the market does here we've seen that this is the favorite spot for everyone to be in the u.s. and if we can look at the emerging markets as a bet going into year end that's okay but just be able to take those headwinds from the headlines on everyday occurrences. >> i got a strong stomach to go there. thanks so much steve grasso, director of

institutional sales at stuart frankle. president trump holding a press conference take a victory lap on trade. back and forth of brett kavanaugh's nomination the fifth it's risk to government a government getting too small to function with michael lewis next

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president trump getting a trade deal done. but in the fifth risk, a new book buy michael lewis, he makes the case since take office the president has not focus enough on staffing or managing various branches of federal government leaving the country and world vulnerable to more unforeseen risks and that's what michael writes about a lot of the time very familiar with it on wall street, trading floors, the big banks, you name it he's seen what happens michael, good to see you i didn't think anybody could make the corridors of the commerce department or agricultural department seem narratively interesting but you have succeeded in doing so let me start by pointing out you're not a fan of president trump. we'll get to that in a minute but what you are a fan of is the

idea that government is not all bad and that there are actually lots of good things it does and lots of good people doing good, important work in government explain why you teal that way. >> you know, i think if you could -- if you could money ball our society and invest in the undervalued asset from the society's point of view, i think the federal workforce would be the first place you would go it has been -- it's been abused and denigrated and for 30 years now. and it's -- and the position of those people they're in is horrific all downside they don't make any money. they can only do wrong anything they do great nobody notices. what i did is i went and got the briefings from the federal civil service, the trump administration never bothered to get and i thought i would learn

point government and in the bargain i learned about these people who were there and what interests me about them the most is just how committed and mission driven they were there's a real passion in that workforce still and they aren't lazy and they aren't dumb. they are where they are for a reason people in the weather service are in the weather service because they care a lot about the weather and know a lot about the weather. >> before we get onto the specific criticisms you have of how the trump administration or the handled the transition and then followed through, give us an example of some of the good people and good work that people in the government do, just to put a pinpoint on it >> all right, well, i mean the first thing i encountered is the people maintaining the nuclear arsenal. physicists at national laboratories there wasn't one who stood out let's pick one and it's a curious one, department of agriculture. there was a fellow who walks

into my pages named kevin concannon. spends $164 billion a year who controls most of the money i ask and this fella had given -- was in charge of the food department of the department of agriculture. the department of agriculture feeds poor kids, the elderly, food stamp, school nutrition he had -- he had managed a trillion dollars in federal benefits over eight years and no one knew his name. and not only had he done it, he had done it remarkably efficiently and he found really clever ways to get food into hungry people's mouths and like he done it completely -- completely without anybody knowing and he done it because he done it because when he was a kid, some people walked from the government, walked into his family's life and basically rescued them so had a sense this place, the federal government is a place from which you can do great good and i think that's something we've forgotten.

>> my father worked for the federal government for 35 years on capitol hill and it's a point of personal sensitivity, frankly, when people paint everyone who works in the federal government with the same rather negative brush. now, you're very critical of the trump transition you're critical of what has happened since the transition in some agencies where you think they have been denuded of the top staff either for -- either for political reasons or ideological reasons. explain what has happened and what you saw as you researched this book by way of either political peek or willful negligence. >> so, it's more managerial negligence than ideological purpose. think about it from the point of view from say a corporation or corporate takeover this is what happens the outgoing administration in this case, the obama administration spends a year and

thousands of people's time assemble briefing books across all the federal departments and these are not ideological books. these are you go into the center for disease control and they explain to you how the zika outbreak unfolded. how they stopped it. various strategies you might adopt if another pandemic rises -- presents itself and you kind of learn what the risks are in each place. the idea was the day after the election, hundreds of people were supposed to roll into these agencies and get the briefings and not only did they not do it. in many cases they never dit trump fired his transition team the day after the election so no one was to show up in some cases when i go get the briefings i'm the first person who has heard them so in what world is that sane management? that's insane. and so i think they started from a position of total ignorance and unpreparedness and he had

dismissed essentially the federal government -- >> michael, it's brian sullivan. you've done a lot of great work on companies but do you believe everybody at every company reads everything the management puts out. >> if you are buying a new company and you don't know what you're buying and people explain what you bought and don't show up to hear the explanation, i mean that's crazy. now, do i honestly believe everybody reads everything, no but in this case, these people -- some of these pieces of paper were like how you manage the nuclear arsenal i think you, brian, if you were in -- if you were president you would want 0 know the information. even if you disagreed with the way the previous administration handled various things, you'd still want to know what they were doing >> that's fair but is there any department that you think is not functioning well right now is there one specific -- i have not had a chance to read the new book i apologize. >> that's all right. yeah, i think there are a bunch. i mean, i think my -- the last

piece of the book is about the commerce department. i picked obscure pieces of the government to show even there, their portfolios of risk that you would not believe. and the commerce department, most of the budget, the majority goes to collecting weather data and trump has put someone, nominated someone to run it, ceo of accuweather who wants to shut down the ability of the national weather service to communicate with the population. and it's thrown the place into a tizzy. so do i -- you know, it's -- i think -- having said that, i would also say this, in the short term the permanent civil service can step in for a bit and run the place, but right now what's happened is an absence of leadership half of the top 700 positions in the administration unfilled. 20% of the top 6,000 senior civil servants resigned in the first year i mean it's a problem. one more thing, you know, you were saying earlier, introduced

i was in favor of bigger government it's not so much that, it's just more -- there are five times more people working for the government who are over the ages of 60 than are under the age of 30 we've got this aging infrastructure that's collected rust over the decades and this guy walked in with a sledgehammer and i think we'll discover this enterprise is more important than we all knew. >> michael, we leave it there. the book is "the fifth risk. michael lewis, thank you >> thank you. california instituting a new law that requires companies to include women on their boards. noble goal anybody would argue but is this the right way to accomplish that goal we'll discuss the debate that and give you more on measures which continue to soar on -- you know what's been the best business day of the week so far. >> it really has. >> since laswet ek

trade, technology, potential trouble for emerging markets all on your power menu we've got the smart money moves and themes that will move your money higher good-bye, nafta, hello usmca the new deal across north america has big implications for different sectors of the economy.

all your details ahead and california passing a new law, mandating women on company boards good idea or any risk of unintended consequences? we'll debate you decide i'm brian sullivan and the second hour of "power lunch" begins right now ♪ welcome to "power lunch. i'm courtney reagan. that makes me miss "the office." the trade deal with canada boosts optimism. though nasdaq 100 hitting an all-time high. right now the doe jones industrials higher by 190 points s&p 500 up by 0.4% and nasdaq composite is higher by 11 points energy and materials are leading the way. utilities and real estate are the laggards and energy higher as oil prices jump nearly 2% boeing, chevron, american express your top dow performers, intel is the worst some other names on the move, tesla soaring as it settles with the s.e.c., ge moving higher after announcing a new ceo and

calamine falling after a miss on earnings and banks are higher led by jpmorgan, bank of america and citi tyler, over to you >> welcome, i'm tyler mathisen and begin with the makes they are getting a nice boost from that trade deal that includes canada but could emerging markets derail the markets? seema has more >> tyler, this revamped trade deal certainly helping stocks today but what traders want to see is a u.s./china trade deal mexico and canada, gdp combined makes up less than a quarter of china's gdp. overnight china reported a slowdown in manufacturing activity due to tariffs if the slowdown intensifies and the world's second largest economy emerging markets could start to feel the pain again. in the short term politics will be closely watched ahead of the first round of elections in brazil on october 7th.

the currency price si we've seen in argentina, turkey and south africa are not expected to spill over into other countries but will dent sentiment if it worsens. if you have exposure to foreign markets in 2018, a tough year due to the rising rates and a stronger dollar emerging markets are down about 9% but this is after a long bull run gaining over 40% in 2016 and 2017 and that's why china is going to be a big factor in play here as to whether emerging markets can rebound in the fourth quarter. guys, back to you. >> all right, seema, thank you very much. now more on the trade deal you might have heard about and on set you're here and we appreciate it. first off, welcome great to see you in person looking through this deal, i mean, it's thousands of pages, literally a trade-free zone for wales, dugongs, whatever that is and emus

how long is it going to be before we know what exactly the difference is between this and nafta? >> how fast can you read thousands of pages, brian? that's the impression here the first thing we know is that we've got a new deal and it's got a new name the usmca or usmca >> u-s-m-c-a >> he did take a victory lap to announce canada had come on board. >> i think my biggest concession was making the deal because we could have done it a different way but it would have been nasty and wouldn't have been nice. the only problem with justin, he loves his people and he's, you know, fighting hard for his people i think we, you know, we've always had a good relationship it dot a little testy in the last couple of months but that was over this agreement. >> no question president trump referring to canadian prime minister justin trudeau who had

tried not to escalate tensions with the white house trudeau also warned that the ink is not yet dry on the deal >> word of caution, we're not yet at the finish line this agreement still needs to be ratified in mexico, in the united states and in canada. what i can say is that free and fair trade in north america, a trading zone that accounts for more than a quarter of the world's economy with just 7% of its population is in a much more stable place than it was yesterday. >> trump said he's not sure whether congress will pass this agreement. he said democrats will only obstruct or resist the deal if they take control of the house or perhaps even the senate so far we have heard from democrat ron wyden he focused on making sure the apparent wins for labor like higher wages for autoworkers are enforced, guys. >> very interesting stuff.

thank you, ylan. >> and light reading >> thousands of pages worth. >> put me to sleep. >> can you find out what a due gong is. it represents months of negotiations between the nafta partners joined by geronimo gutierrez, a first on cnbc welcome. the markets are reacting positively from where you sit. is this a good deal for mexico >> good afternoon. i think this is a certainly a good deal for mexico but moreover this is a good result for the north american partners. it's a good result for the united states, canada and obviously mexico i think it brings needed certainty to our trade and investment relations and more importantly, i think that it prompts north america to remain the most competitive region in the world. so it's a good result and something that we should feel positive and proud about. >> what's the most important difference between this agreement and nafta?

>> well, there were a series of things we just needed to update, the best example we needed the agreement is 25 years old. we needed, for example, to take into account that the internet and e-trade is much more important now than 25 years ago. so a lot of things have been just updated and modernized. the other thing is that, for example, we have strengthened labor and environmental standards. and i guess more importantly is that we are working through what was achieved in the auto industry, we want to make sure that we have a stronger auto industry throughout north america and that we're able to better build more cars and auto parts in north america >> ambassador, certainly this took a little bit of time to get through and for all sides and parties to agree, not everything, i assume worked out in mexico's favor. are there shortfalls with this new agreement? >> well, this type of agreement is obviously difficult to negotiate.

you know, everybody has had to compromise a bit a deal can only work and only can -- it can only be a deal if it works for all parties so the three countries have got to compromise on some issue, but the overall balance, we believe, is a very good again for mexico and for north america. >> which issues did you believe that you had to give a little more than you wanted to? >> well, i'll give you an example. some of the provisions that have been included imply that we have to be much better in our labor standards, that's something that we believe in but we needed sufficient time and capacity to adjust to that that is important. and at the same time with one we wanted to maintain the dispute mechanisms and update them and i think that has been established. so, again, the important thing is the overall balance for mexico and its partners and i think that's precisely what we achieve, a good result in the end. >> do you think that this in

some ways and you're never going to answer this question but i'll ask it anyway, ambassador, was it rushed to get president pena's signature on it >> no. >> president-elect -- >> we always talked about the importance of having the right deal but moving as quickly as possible because precisely we needed to create certainty for economic agents. the government elected mexico, mr. lopez -- our president-elect has been supportive of the negotiation. he had part of his team as servers during the last negotiation so that it's important. the idea to move quickly was always to make sure that there were certainty for our trade and investment relationship and that nafta or it's not so much -- how

do we produce together so it was important to get it done as soon as possible in the current global environment >> ambassador, it was a real pleasure to have you on. thank you very much, sir we hope to see you again. >> thank you very much my pleasure. >> while one trade dispute is over another one lurks in the background that is china the ongoing battle starting to worry the imf which said trade disputes and tariffs are starting to dim the outlook for growth the market doesn't seem terribly concerned. what's next? let's bring in tim seymour and a "fast money" trader and david re reidel welcome. david, let me begin by asking you the sort of fundamental question here. as between the u.s. and china, can this marriage be saved >> i think it can be and i think it has to be they have to have more dialogue

and less threats and bluster we believe china has unlimited ability to absorb tariffs and have $4 trillion of reserves and have a very compliant citizenry and don't have to worry about the midterms or 2020 elections or anything else so i think that the u.s. needs to ratchet down the bluster a little bit and if the two of them talk sensibly they can have a constructive outcome. >> does the fact that this new trade agreement with mexico and canada and the possibility of one involving the european union, does that make for a stronger combination as the u.s. negotiates with china? >> i think the u.s. would have been better served by maintaining better relationships with its allies throughout this process. i think if they had been able to provide a united global front of trading partners to china would have been more helpful but i think at this point, any reduction in risks is good for global growth and good for the u.s. and good for emerging markets

and i think we're just going to have to wait to see how the china relationship evolves. >> i think i saw you shaking your head. do you adisagree about what we can read into this deal and what it may mean for the u.s. and china? oh i think we might not have mr. seymour's audio. david, i'm going to go back to you if we can here and move into the market discussion. we're having a nice day here at the beginning of the quarter things ended really well for the s&p 500 at the very least setting some nice records among some other groups and names. what do you think as we go into the final quarter of the year? is this going to continue or are there just too many risks to be sure >> there's certainly a lot of risks around the world that people need to keep an eye on especially inflation with higher oil prices that will start to tick up but if you look around the world, u.s. dollar assets remain a very attractive investment opportunity for people i think people are more concerned about lowering their

risk profile than generating tremendous returns at this point. i think it's sort of a capital preservation move and i think towards the end of the year people might start looking to 2019, growth numbers and what that looks like, emerging markets and north america and will be a better market for emerging markets and people might start to switch out of the safer environment here in the u.s. >> tim seymour, we have to stop meeting like this. i want to ask -- he's not good tim samer, the first time anybody ever said we can't hear tim seymour. >> he's usually here. >> and coming from me, that's something. >> david, let me just ask you one quick question about oil how high do you think it may go and what effects might that have both on the domestic economy and global economy is it going up for good reasons another way to think about it? >> i think it is going up for good reasons i think global economic activity has been robust and a lot of demand for oil and in many

places so in the short term i think you're going to continue to see strength in oil prices. in the medium and longer term i wonder about the impact of alternative energies, natural gas, electric alternative, things like that whether that creates some disconnect between oil and global economic growth so i think we're probably going to see them strong through end of this year, beginning of next but then in the medium term an longer term we should be ready for a -- >> the rope and tin can is attached to tim's ear. >> what did i miss, guys i mean, holy cow hi, dave >> everything is fine. everything is -- tim seymour, should i take all of tyler's retirement as celts and put them into mexican stocks. >> wow, absolutely not i think the argument in favor of some of those markets, those outside of asia and emerging world doing better is look at mexico relative to the price of oil. some of the biggest issues for

the pace so we the peso, i know you were talking about energy and think oil prices are a major component of why -- >> we've lost him again, i think. you know, we're just going to stop right there >> trade deal between 30 rock and inglewood cliffs. >> tim seymour, thank you. coming up, apple has been crushing it but facebook fell flat and what is going on in the fourth quarter plus, california becomes the first state to require women on corporate boards it's been tried in europe and didn't work as intended. will it backfire as well we'll debate it and the battle over papa john's has entered the courtroom. we are there live with the latest ♪ a moment of joy. a source of inspiration. an act of kindness.

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tech continued to dominate the headlines in the third quarter. both for better and worse. let's look at the biggest movers apple was the best dow performer up 18% while facebook had its worst quarter since 2012 and snap saw its first quarter since its ipo. twitter was the worst in the s&p 500 so what does it mean for the fourth quarter let's bring in our team. michael and michael. since we've got two michaels i will he go with full names

michael pawter it looks like you're neutral on twitter. why and what do you expect in the fourth quarter from that name >> you know, i think twitter and snap have similar problems that is lack of vision. they're led by founders and the founders seem to treat the companies like it's their children and they just don't see anything wrong with their children and so they are reluctant to change anything you can see what jack dorsey did with alex jones and how he -- jack was the protector of the first amendment for a week before he booted alex off the site they're not taking steps to drive revenue growth they seem like they just think if you build it, it will come. and i think investors have gotten fed up and not seeing the revenue growth investors expected they thought twitter would follow a facebook trajectory and did not. snap, everybody has given up on. i upgraded because they got rid of one of the biggest

impediments to growth which was imran khan they got rid of their cfo and hired a smart guy. if these two stocks are positioned to turn around, snap is showing me they're serious by getting, making -- shaking up personnel. twitter is not showing me it's serious because they're keeping him. >> michael, you've got a buy on facebook, app and google and have a ranking, a preference and with amazon in particular, you're interested in this new four-star store. i saw it i'm curious why you place a lot of importance on this for amazon. >> well, yeah, we like amazon. it's the top rank in the group there. for the f.a.n.g. names and i think the key with the store, it just shows that amazon is working to become a bigger fabric of our daily lives and really continue to be the case with more retail presence and there was the rumor out of, you know, several thousand new

retail stores over the next few years. i don't know if that's going to prove to be the case but definitelyny there's more of a physical presence and most importantly we think this advertising opportunity for amazon is going to drive upside to operating income, not only this year but over the next several years. we think they'll drive midteens, billions of operating income from advertising over the next few years and end up being the bigger driver. >> michael pachter, worst quarter since 2012, the instagram founders are leaving what do you make of facebook's prospects going into the fourth quarter and whether they're a bigger problem under the hood? >> you know, the recent news, the instagram founders leaving was perceived really negatively but if you look at the reason they left that facebook is going to monetize their platform, you know, to a greater extent that's good for shareholders. i think those two guys were done tweaking with user interface and i think instagram is about to explode positively so i think

that is good the data breach is serious this is not somebody misusing data and advertising without paying this. is somebody who actually breached 50 million accounts, got control of the accounts, that is a nightmare and, you know, i'm glad that facebook told us about it but i'm waiting for the other shoe to drop so at least facebook was proactive that's a serious problem my -- >> i'm sorry. >> i'm sorry none is the reason the stock is down the stock is down because the cfo said spending will rise faster then revenue. that pissed investors off and we lost $100 billion in a day because nobody wants to see that amazon was doing that a few years ago and changed their minds and decided to only fund growth out of profitability and the stock has gone up 8x so i think if facebook follows the ram son game plan it will work. >> michael olson, your favorite stock among the four or five we've been talking about >> well, it would be amazon. we do like apple as well as far as apple, we raised our

numbers today really related to just increased confidence in asps for the iphone cycle and already were not only above consensus for units and survey we did of iphone owners suggests that they are tending towards the iphone x and xmax and we expect both upside to asp and units. >> the two michaels, we thank you, michael pachter and olson from piper jaffray. john flannery is out but with the new guy, will he deliver the turnaround the company is promising trading nation takes a look xt

welcome back to "power lunch. time for trading nation. take a look at general electric. still up more than 8%, close to 9% after the company removed john flannery, ceo, after a brief year in the role craig johnson is with peacher

jaffray. try to assess the stock from here if you look at the chart on the way from 32 down to 11 a lot of rallys along the way yet still was in a big downtrend. any which to save a stock that's washed out and ready to bomb here >> you know, i don't think so at this point in time and look at this chart the new ceo coming in is probably the right move for the company. if you strip aside the change in management it is still making a series of lower lows and lower highs and really take a close above 15 to make any sort of indication that a low has been set and that perhaps we're going to see some sort of trend change tart to unfold from my perspective too early to buy it and usually when you get a change of management you get initial reaction and if you go back and see that stock usually corrects further before you find that ultimate low and i suspect that will probably be the template for ge too. >> boris, you know, aside from just the ceo change we got a big

write-down of the power business, obviously we don't know if, in fact, the health care division will be separated as well as planned so do you go about trying to figure out the value. >> you know, i think if you step back you have to understand that ge is in trouble not because the market hates its products but because ritz overleveraged and made terrible acquisition deals. mr. culp coming in is very well known as a guy who brings in creative deals and both a good trader and good manager and the market is reacting positively to that i'm under no illusion. we could still have a dividend cut and still have, you know, a rights acquisition issue and probably need some kind of a capital infusion into the company. so it's very likely they could still drift back down to 10. i think on a three to five-year time basis as an investor it's an excellent opportunity because it is still a pre-eminent industrial giant. >> all right, well, ten would

get it not too far from 2009 lows amazingly enough. thanks, guys appreciate it. for more trading nation head to our website or follow us on twitter @tradingnation. now to sue herera. hi, sue. >> here's what's happening james allison of the university of texas holding a news conference in new york after being awarded the nobel prize for medicine along with japanese researcher tuz tuzuki hongo. >> i want to start off by saying i'm still in a state of shock. it's still sinking in and try to make some sense while i'm talking here it's really wonderful this morning to wake up and my son called me at 5:30 and was the first to let me know i had won this prize >> iran says it fired missiles into eastern syria that targeted leaders behind the recent attack on an iranian military parade.

the missiles were fired from the base in western iran iran believes the u.s. and israel were behind the attack. and a day of remembrance in las vegas as that city reflects on the worst mass shooting in u.s. history it was one year ago today when 58 people were killed and more than 800 injured during a mass shooting at an outdoor concert festival hard to believe it was already a year >> yeah. >> that is news update ty, i'll send it back to you >> and 800 people wounded. we remember the deaths and but we sometimes don't remember that amazing toll of injured. >> absolutely. it was horrible. >> yeah. sue, thank you let's move back to the markets and the oil market is closing for the day. eric is covering it for us at the commodity desk eric >> that's right, take a look behind me. 7532, the first time since july 3rd we've been crossing above 7527 so we're now at the highest price since november of 2014

think about that four years ago this is now the highest price right now today giving the chart plenty of room to run towards $80 supply keconcerns continue to tk it higher. a lot of analysts say the new nafta deal will boost prices higher due to increase economic growth in both the u.s. and canada you can see brent crude up 3% above $85. a lot of traders are looking at $100 as the next point of resistance there so very bullish day here on the oil and commodities deck back to you, guys. >> thank you very much coming up, california's new law says boards can no longer be all male sounds like a good idea but will setting a gender quota backfire? we'll debate you can decide, it's next. >> announcer: and now the latest from tradingnation.cnbc and a word from our sponsor.

will committee back to "power lunch" and a look at the markets. the averages are all off session highs. nasdaq turning negative moments ago. you can see right now down by about five points. s&p 500 higher by 12 points and dow jones industrials are up by more than 200 points energy and materials are leading the way for the sectors and t l tilray is up it had been up 20% now up more than 9 1/2% and semis have a good day. invidia jumping and advanced micro and qualcomm moving higher as well. california becomes the first state to require public companies to include women on their boards companies headquartered in the state must have at least one woman on the board by the end of next year. well, this new law, will it work or could there be unintended

consequences joining us is the author of "winning" and the president and ceo of the conference board, both, of course, cnbc contributes. susie, the goals are noble many european company, norway, spain, countries rather have these as well and sort of these mission statements do you think though there is any risk to any kind of unintended consequence? >> well, if they do it too quickly or thoughtlessly, then, of course, there could be people who -- women put on boards who shouldn't be there but it's hard for me to see a downside in general because i think it's good for companies, i was -- met a ceo from an oil and gas company this summer and he was in despair and said, we can't get any good women on our senior team because we don't have any women on our board and every final we bring in great senior women from outside of the company and try to fill our senior ranks with women, they look at our board and say there's no women on your board i think the companies probably should welcome this if they're not welcoming it it's only 25% of the companies that don't have a women on their

board. this should be a welcome change. >> steve, you see any downside risk to this as well >> well, you know, even the governor says they're going to be legal challenges but the fact is we need more women on boards, only about 12% of all directors of public companies are women and 20% on the fortune 500 list, so the majority of the population are women the majority of college graduates are women. the majority of our whole economy is the consumer and 85% of all consumer decisions are made by women including financial decisions, investment decisions and so forth so if you think about it, every constituency of a corporation, the customer, the employees, the owners, the community is majority women and the group that oversees and advises management in these corporations are not. in fact, they're the vast minority so we need to change here the question is how to do it and, you know this, is one step that probably won't survive but it's going to get a lot of

attention and i hope corporations wake up and that the boards start to appoint more women. >> suzy, do you feel as steve does, this probably won't survive a legal test if i'm understanding steve correctly. that's number one. because i'm famous for compound question, question number two, would we all be better off if no state, no government felt compelled to have to pass this kind of law? >> right in fact, maybe no other government -- no other state will have to because the other states will look to california and say, okay, let's just start doing this before we -- it gets legislated from everything i heard it may not survive the legal challenges but i don't know why anybody would waste the time and energy to mount a legal challenge this is not going to hurt any company to have women on the board and it's a good thing and i would further say this is a wonderful opportunity for women who think they should be on boards and the men who support them to raise their hands and say, you're looking for women on your boards. i have the experience, here i

am i think women have become so accustomedto not being top for board positions they haven't said what about me and i think it's time for women to do that put themselves out there and get on board. >> it seems silly any company would say we don't want women on our boards and would seem like a weird risk to take i have to ask the question, could there be unintended consequences from something like this >> we don't want quotas. none of our member, especially the women don't want to be a quota. we started an initiative at the economic development of the conference board we called every other one and said, look, don't throw people off boards, replace every other retiring director with a woman a woman, a man, a woman, a man, that seems like equal to me and if you do that in just a few years you'd be up 30% and eventually have half of directors are women and that seems a fair way to do it and our women directors love that. so i just think that there needs to be great focus on this, we need improvement

there hasn't been a lot of improvement over the last 20 years and i'm glad that there's now this focus regardless of what happens to the legal challenge. >> suzy, do you think it'll be hard to find enough women if a law like this goes through you've heard a lot of companies say we'd love to hire women. we can't find those qualified. >> i'm afraid i do not buy that at all i think there's so many qualified women. i do think that if you know of a great woman, you should get her name out there and it's going to take some raising up of women and because for a long time they have not been considered for the roles so i don't think a shortage of qualified women is the problem at all >> so, steve, let me just cut to the chase here is this kind of mandate something government ought to be doing or should government just keep its hands out of the boardroom this way and i'm not suggesting that i feel one way or another but -- >> you know, this is the way they've approached it in northern europe. our view is that businesses need

to get off the stick and do this on their own and the problem is that they haven't done it quickly enough but, look, there is not a supply problem here if you define supply as only fortune 500 ceos who are women you've got a constrained number but if you think of all the women business owners, the number of consultants and legal partners, the number of un r university presidents and goes on and on there's not a supply issue here this is an awareness issue a focus issue and the directors of america, the boards of america need to get going on this regardless of the law. >> all right folk, thank you very much. suzy, greet to see you, steve odman, good to see you too. a look at twitter's strategy to keep attracting advertisers amid all the noise next on "power lunch."

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♪ welcome back to "power lunch. after reporting a drop and millions of fake accounts discovered twitter is under pressure to reassure advertisers that it's still a platform they want to be on. julia boorstin joins us with more >> thanks so much.

courtney i appreciate it. i'm here with you. you have received revenue and here at ad week talking to advertisers and there have been so many negative headlines whether it's the spam or the fake news, going viral on twitter or election manipulation how are you addressing them with advertisers and how have these headlines impacted ad sales. >> if you look back to our previous quarter, our ad business is incredibly strong and grown in over 27% yore after year and i think that's because we're continuing to innovate and bring new products to bear video is over 50% of our revenue and marketers are getting great results from uses it i was on stage sitting down with the head of digital at nestle and two of his biggest brands twitter was the number one platform for return investments serving them so as long as

results there we will grow our business with our customers and continue to earn their trust. >> your ceo jack dorsey was on capitol hill testifying for this house and the senate on a couple different issues including the question of whether there's buy as and also protecting consumer privacy. how are you addressing these issues with advertisers here how are you reassuring them ahead of the midterms. >> we're being completely transparent and jack modeled this and talked to the regulators and the congressmen we want to be really transparent about what we're doing there are serious issues facing all services that are global in nature like ours and taken tangible action just in the last few months and heard about our ad transparency center anybody can go and see all the political advertising on twitter and who is funding it. we've introduced labels around all the political advertisers so they're clearly demarcated so you have trust in where it's coming from and lastly on spam you mentioned we're doing more than we ever have. two times the amount of spam has

been taken off the platform from two years ago. that's what we're talking about to continue to get better. >> with the midterm elections around the corner can you reassure advertisers their ads and content won't be next issues to threaten their brand safety and won't be manipulation -- >> a big part of how we designed the platform control is in the hands of the advertisers. just specific conversations, if you're a brand who wants to connect with the nba, that's something that our tool allows you to do. i'm in charge of content partnership and our business has been flourishing and one of the great things about how we designed it marketers can actually choose specific content they want to align with and ensure that brand alignment so important for them. >> you're making all these content partnerships and competing with a lot of other companies including facebook to get these brands which i'm sure is expensive for you but are you doing that because you want to

reassure advertisers that their content will be in a safe place. >> no, absolutely not. the primary driver of everything we do is help serve that public conversation that's so unique to twitter and great content whether it's the world cup highlights we had from the world cup with fox, it's a great place for us to get video and bring that public conversation around it and it's great for consumers and terrific for marketers who want to align with that passion. >> here at advertising week we're hearing a lot about the rise of amazon as a real force in advertising, now number three digital ad platform in the u.s. and at&t has xander and seem like a real threat to twitter in particular. >> both of those companies are big partners to us already so on many dimensions we work closely with them. i think for twitter, we've never been more clear about what is our superpower we have the most valuable audiences when they're most receptive. if you want something new twitter is the place to start because we have those audiences. and that's the message we've been going with and have data to

back it up and defensible position going forward. >> jack dorsey said on tapestry he was willing to give up profitability if it meant protecting the platform for the long term. how does that impact you when you're trying to grow ad revenue? >> total align many. some of the decisions we are making that might impact short term but will be the right thing for the long term. we'll get a lot of support and i think it's the right thing >> certainly a fascinating time especially leading into the midterm. thanks for joining us. back over to you all right. up next, papa john's founder says he is part of the company and he wants to remain a part.

all of this as he heads to court to sue his former company. we'll have the latest on this incredible saga next only half the story?

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welcome back papa john's in court today suing the company for documents surrounding his firing kate is live outside the courthouse with more hi kate. >> hi courtney john has just wrapped up his testimony. we are awaiting his and his team's exit from the courthouse. this is one of two lawsuits that he has filed against the company. i hear he is just coming out right now. if we get any comments we'll bring it to you. today he really appeared calm and reserved it is in stark contrast that he has made and statements he put out on his web site. he says he feels the company didn't properly protect him as

founder he says he doesn't know if the board's actions amount to a cue, conspiracy but he wants to obtain documents to figure out what happened here i also spoke to a source close to the company that said he is a bit confused about what documents he was asking for. it is troubling because he was a director of the company. he added that the company looks forward to moving past and creating a better papa john's. also we should mention we are

several weeks away from a decision it is unclear if the judge is going to rule from the bench it looks like it did not happen. we are awaiting comments from john snyder. back to you. >> thank you >> guess what is next? check please we'll be right back.

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>> i'm running on caffeine >> what do you miss most >> i do miss you mic check please ge has its problems. it said in june it will spin off the baker hughes division. i do wonder if i'll keeps going up is ge making a wrong move at the wrong time or did they decide to keep it? >> it was always one of the criticisms is that his deals were so perfectly badly timed. every single one of them >> perfectly imperfect if. >> yeah. >> quite something all right. >> what do you have? >> you good check please >> we are starting to think about the holiday season a couple of stories up on our web site we will stay close for thanksgiving not everyone is turning to that. nordstrom has always said hold

off decorating >>. >> have you seen a store with christmas decorations? zbli don't think ihave wow. it's time for the closing bell ge faces yet another ceo shake up i'm phil elon musk settles. we'll be talking to proctor and gamble, one of the world's biggest marketers about where it is spending ad dollars right now. former secretary of state john kerry joins us t