this is a name i own the calls in it might trade down but i think it rises back up eventually. >> i think gorman blows it away. >> thank you very much -- >> where are you going >> nap time. >> why are we wrapping >> "the exchange" with kelly evans begins now. the administration and jamie diamond sounding the alarm on the cost of the shutdown to the economy. we have the numbers. netflix raising prices and the street is cheering big time. the stock is now up more than 50% from its december lows and a debt crisis may be brewing in hollywood, this one could spell trouble for big media as it tries to take onthe streaming giant. we have the numbers. >> it didn't start off that way. it looked like we were going to be negative because of jp morgan but the dow up 130 points, the

s&p up by 24 and the netflix gains helping to drive the nasdaq up by 1.5%. a couple stocks to watch good year tire a steep drop you can see here after the company, it makes tires, said at the end of last year saw a unit volume drop and atributed some of the weakness to not just china, but india as well and then one more to focus on, sherwin-williams do it yourself paint, construction, those stocks down 4.5% right now it came out with preliminary results showing sales declines or sales growth less than expected in october and november although sales did pick up in december >> markets dipped into the red earlier today when senator chuck grassley said according to

robert, there was little growth in last week's talks with china. but stocks are back in the green as oils moved ahead and big jumps with netflix and other fang names and minneapolis president saying he sees no need to hike ranks. and jp morgan reporting its first earnings miss in 15 quarters the stock is now turning positive like citi did yesterday. and regional bank first republic is up 12%. bob has more on this for us from the new york stock exchange. bob? >> you know, jp morgan was light on earnings. we tend to concentrate a lot on the trading activities of the big money center banks but look past the trading numbers and you see a robust consumer, optimistic from jp morgan loan growth up 6% the same as last quarter

card sales volume up 10% net interest income up 10% driven by higher rates and consumer credit was good overall. this paints a healthy picture of the u.s. consumer. that's what we should be looking at as for the banks today, kelly is right, two days in a row, the banks have risen normally you see them go down as you go into earning season that's not happening this time the bank index is up 8% so far this week. kelly i think this indicates banks sold off big in the fourth quarter and not doing so for now. >> anything you're hearing on why wells fargo is bucking the trend? >> i think there's still some reputational issues that wells fargo has. i think there's some reputational issues still for them. >> we'll explore this more in a bit. now to the government shutdown, which has entered day 25

eli is standing by to watch for any signs of movement for us eli? >> reporter: the president is having lunch with rank and time lawmakers today at the white house. the meeting was supposed to be between both republicans and democrats but none of the democrats accepted the invitation >> the question i think everyone can reasonably ask is is he inviting people to 1600 pennsylvania avenue to really try to resolve this problem or to create a photo op >> democratic leadership said the party is united against the shutdown and they're voting on two stop gap measures lawmakers were supposed to go home next week for the mlk day weekend. they were told they have to remain in session next week here in washington as the shutdown rolls on >> you got the old fashioned notebook going. >> pen and pad

>> pen and pad crew over here. thank you very much. we'll be speaking to a congressman about this a little bit later this hour. trump administration saying the cost of the government shutdown will be twice as steep as they originally forecasted. steve is here with those numbers for us this is surprising, steve. >> it is they doubled it, basically, kelly. the shutdown will subtract 0.1% points from the economy every week the 800,000 workers on furlough, the estimate was 0.01% the rest comes from private contractors. just so you know, mark has the 0.1 every two weeks. so half a point if you last through march. the new administration shaved half a point if it lasts just through january. >> have they been able to recalculate this in the last couple weeks what's changed >> i think a broader thinking

about things, one is the affect on the private contractors and the second is if you can't keep all the government functions working, they've been doing this triage and maybe there's less confidence about their ability to triage these things. >> i saw an estimate about 13.5 million is the tally that rely on the federal workforce. >> i think that's right. i sort of saved the worst news for last there is one estimate out there, the first quarter is statistically eak, but the government has been trying to fixed that, but not gone all the way. but they say we may go negative because of the shutdown and the weak quarter, and not even mentioning the tariffs and the global funds tightening. talking about this dramatic drop in growth, jamie diamond himself this morning sharing in

the pessimism saying that someone estimated if this goes on for the whole quarter it could reduce u.s. gpd growth to zero and he said we have to deal with that. let's bring in brett ryan now. we've now herd a couple different estimates. jamie's, rowan's, do you have a view this is pushing u.s. growth into negative territory now? >> it certainly presents a risk. i think the white house's numbers make sense if you assume about a million federal contractors that are also not getting paid in addition to the 400,000 furloughed the way the be looked at it in 2013 is it was lost output from hours worked if we assume 1.4 million people working about 34.5 hours a week, shutdown for four weeks, it's about $26 billion analyzed that would be enough to lower gdp growth by four to five

tenths i'd say it's realistic it depends on when the government reopens -- >> if you're saying it's going to reduce first quarter gdp growth by about 0.5% points are you saying that was that low in the first quarter to push it negative >> it's a risk, to be clear, only if this continues if they pay people in time, before the end of the quarter it should be fine, it shouldn't have an impact on the actual data but yeah, it's totally a risk -- >> what is your house view on gdp right now? >> we are already 1-9 in the first quarter of the year. again assteve pointed out some of it is residual season alty. we had a strong spending growth in the fourth quarter so likely to get pay back in the first quarter. >> so steve because we know markets are forward looking, maybe six months in time or whatnot, this is happening right

now. it's bad for first quarter gdp gdp. do markets look past this and know it's not a real issue for now? >> first of all they're going to need pencil sharpners because there's a lot of pencil work to do accounting wise what brett is talking about is the difficulty, there's a duration and depth issue so houchk this thing lasts and how deep it is every week, that's what economists are trying to figure out there's also the issue some of this comes back. they issue the paychecks in the second quarter so you get some of it back -- >> even with the jobs number if we lose half a million, do we gain 800,000 the following month if it picks up >> i spent a ridiculous amount of time with the bes, and they do not want to use the show's time to discuss the accounting but my read is it does not show up in the nonforeign payroll report >> it would if it lasts pass the

19th i think if it goes past saturday -- >> the survey week is -- >> go ahead, brett. >> right now the survey week is this week. it's the week of the 12th. as we saw in the last one, which had 800,000 furloughed so double the amount of furloughed people. we didn't see it in nonfarm payrolls, payrolls printed over 200,000 that month we saw it in the household survey, the unemployment rate. for example, the unemployment rate went from 3.9% in september of 2013, to 7.7% in october of 2013 that was a sizable jump and the rate went from 7.2 to 7.3. >> as soon as it was over was there immediate give back? >> yes we saw claims jump about 12% over the shutdown period in 2013 and that worked itself out in subsequent weeks. >> there's ap irony about this,

because of the government shutdown we have less data to show the effect of the government shutdown. tomorrow we're not getting the retail sales report, arguably the most important of the year because it has the christmas season in it -- >> we do know christmas was supposedly strong. >> do we let's put up the retail sales index or what is it the r.l.x. >> for the actual -- >> yeah. macy's was negative, kortney has been trying to juggle the balls -- >> master card said we were up. >> they said that. macy's said that inventory we're not getting, housing. >> and gdp we're not going to get. >> that's right. what day is january 30th day two of the fed meeting the fed says we have other stuff to look at but they also say they would rather have the full compliment of data. >> and they basically said they don't have their own

they are relying on these reports. it's not like they have special private information. >> riddle me this. how do you be data dependent with no datdata >> brett we'll give you the last word. >> steve is right about that you can gauge the economy through the industrial report and other sources, that showed december was definitely pretty strong but in general it decreases the certainty of any forecast. so without -- if it came down to a close call on a fed rate hike, which it doesn't look like that's going to be the case anyway, it certainly would have an impact. >> brett, thank you very much for joining us steve, appreciate it here's what's straight ahead on "the exchange" >> banker names rolling in, the headline numbers haven't been great. but is a deeper dive painting a better picture plus is there a debt bomb waiting to go off in hollywood

a look at the staggering numbers on company balance sheets that should have wall street worried. and netflix raises prices as costs balloon. will it drive away consumers this is "the exchange" on cnbc ♪ and everywhere i go ♪ there's always something to remind me. ♪ ♪ of another place and time. ♪

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ester george speaking moments ago. >> this is her first speech of the year on monetary policy. she's a voting member this year. also one of the hawkiest members of the fed she's saying we're getting close to the neutral rate but not quite there yet. she said the fed should proceed with caution and be patient and it may be a good time for the fed to pause its normalization strategy goes on to say it's possible that some rate hikes may be appropriate but she wants to wait until they see the full effects of the existing rates on the company. the balance sheet unwind effect she says is unclear. i want to look at the risks she says are out there to the economy. financial markets she says are tighter. the dollar has appreciated wider credit spreads and uncertainty from trade and the global economy kelly, the importance of this is that george is in the let's wait and be patient camp. she was one of the ones who earlier on, last year or the

year before, egged the fed on to do more in terms of rate hikes >> thank you very much jp morgan this morning reporting a rare earnings miss for the fourth quarter as volatile trading in december hurt results. is this a problem for jpm or a sign of what to expect with goldman sachs and morgan stanley. let's bring in chris, emily, and melissa lee. welcome to all of you. melissa, i want to starts with you. we've seen the share price reactions, perhaps the most interesting things about this. you don't see jp morgan miss often. >> it feels like we're at a point in the cycle in terms of the bank trading cycle where it doesn't matter what they say last year banks posted decent earnings bah bank of america beat every quarter it reported last year and the stock was down last

year for jp morgan, there are things to pick apart. citi it was lower quality. jp morgan there were misses all around and the stocks are trading higher it tells you perhaps the banks should never have been where they were in the december lows. >> it's like if donald trump got elected again the stocks would take off you had a recommendation on so many of these names and goldman is down 32%, citi is down and bank of america is down 15%. >> i agree that the stocks should never have been there c iti bank was down 24% but still 26% from the high of this time last year what it tells you is that the bank stocks trading pattern has come unstuck from reality. in my view, the reality is pretty darn good for the most part the numbers

are stable you know, the trading miss shouldn't have surprised anyone. in early december, december 4th, brian said he thought trading was going to be up 4 or 5% december 20th he said it's going to be down a couple percent. anybody with their eyes open in december should have known that kind of volatility in the capital markets is going to cause damage >> what are you seeing in the results so far about the fundamentals >> i think at large the banks are doing pretty well. we've seen loan growth consumers are happy. jp morgan they had that trading miss it was off about 6%. far better than citi group which was 15%. and otherwise jp morgan's results were pretty good the mortgage market isn't doing so hot we saw that with wells fargo, too. that's seasonality i think the stock market shows shareholders are okay with this.

and there were massive gains last year and everything is kind of stabilizing again right now. >> what is going on with the mortgage market? is that why wells is going down? they're the ones overall bucking the trend? >> that's happened with wells fargo, ever since the scandal erupted more than two years ago. the big thing i think is going on with wells is its ceo timothy sloan did tell folks about two hours after earnings were disclosed the banks would be remaining under the federal reserves asset cap closer to the end of 2019. in may he said the bank would be there until the first part of 2019 and he reiterated that as recently as december so i think some were surprised by that. >> we want to look ahead in terms of the trading side of the businesses to morgan and goldman. should we expect weaknesses there? >> i agree the asset cap comment

is what took wells fargo down. in early december he said he thought they'd be out of it by mid year and obviously it's taking longer than they thought. i think we should generally expect weak fourth quarter results. overall you look at the trading companies that have reported thus far, equities is up a little bit but fixed income trading is down about 19% for the companies that have reported so total trading results are down nine. and it's reasonable to expect everybody else to have that as well you know, what it means for the first quarter and going forward is a lot less clear. i would say, you know, you've had a nice bounce back so far in january, but other than that, i would say it's hard to go through something like december and not have some collateral damage, debt under writing and equity under writing was weak in

the fourth quarter i'd expect it to be weak again in the first quarter that could change depending on how markets have done. but the bigger take away should be the big banks especially are these gigantic machines. they have business with tens of millions of consumers. and for the most part that will drive a steady underlying growth and the trading will bounce around right? >> if that drive is a steady underlying growth, last year was as good as it could get when it comes to the economy and u.s. consumer yet the bank stocks traded terribly. the markets moved from record highs in january, to highs in september, october, without much help from the bank stocks. with a weakening economy going forward, a fed seems to be on hold, can the bank stocks actually do better in this environment? >> well, let's separate the

fundamentals in the market, right. i think the bank fundamentals are the strongest i've seen. >> sure. that's great but for investors it hasn't meant anything. >> you have to be patient. stocks that have reported, their share counts are down 6 pkts year on year if people want to throw in the towel, if my competitors want to suggest people throw in the banks, they should i would rather be the one person who owns the one last share 15 years from now >> the very patient man. chris thank you for joining us along with emily and melissa still ahead, he said his company has never spied for china, this after his daughter remains under arrest what's next? a smart sneaker you can control from your smart phone.

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welcome back to "the exchange". here are some of the movers this hour united health leading thedow reporting 7 cents above consensus. social media names also doing well, twitter, facebook, and snap are all moving higher facebook by 3% today

blue apron shares are soaring after it remains committed to being profitable for the first time in 2019 shares are up, but the market cap is $229 million. stock is still off more than a half in the year we told you about netflix's price hike giving the stock a boost. will the rate hike make you cancel the service or reconsider signing up now over to sue for a cnbc news update. >> here's what's happening at this hour. british prime minister theresa may leaving downing street following a plea for legislators to give her brexit deal a second look members are planning to deliver their investigator on her divorce deal with the european union. president trump is considering recognizing venezuela's opposition leader as the leader of the country.

this would increase pressure on nicholas ma dora s a saudi run away teen says she intends to fight for women around the world the 18-year-old ran from her family who she claims is abus e abusive. she was granted asylum in canada the fda starting today is starting reinspections of food facilities inspections of high risk foods like dairy products will take priority that's the news update this hour kelly, back to you >> sue, thank you very much. a half hour to go until power lunch. and you're in your syracuse orange. >> it's as close to virginia orange as i could get. because virginia plays our rival

tonight. >> i'm aware. >> first time two of them have played while ranked in the top ten. >> did you catch the upset >> i watched the overtime. >> you're tired today. it was pretty late. >> yes. >> on power lunch we have the good news that we have really action happening that is the brexit vote that kicks off at about 2:00 p.m. in london and, of course, everybody is watching to see whether theresa may can pull a rabbit out of her hat. chances are she won't. then comes the debate over how bad a defeat it is and what the implication of that will be. we'll take that part we have michelle back in the house to guide us through it it's a high-stakes thing with major consequences not just for britain but also the global economy. >> this one is clear, people are looking at the vote count to see how much people support if it's a no versus the yes? i watch the british pound.

>> that's a telltale >> then we'll hear from the ceo of washington federal. a big regional bank, a successful one that works in about 8 states in in the western part of the country. had earnings last night. we'll talk about a new initiative he's going to announce on power lunch in about an hour's time the regional banks are really also telltales about the united states economy. >> best performer in the s&p today is a regional bank curious what he has to say see you at the top of the hour here's what's ahead on "the exchanges" >> coming up netflix raises prices the tsa in turmoil and nike goes back to the future and nike goes back to the future with its self-lacing shoe. and put it all to work with ai. the ibm cloud. the cloud for smarter business.

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time for a few more head lieps that should be on your radar. it's time for rapid fire here is morgan, leslie, and michelle you didn't know who patrick mahomes was, leslie, last time. >> i know. i'm outed. >> you are totally outed the first story is netflix

it's raises prices, 13 to 18%. the biggest increase since they launched investors love it. the price goes from 8 to $13 now? >> it's the fourth time we've seen a price increase by netflix, the most recent one was two years ago. it speaks to the fact that they have content they think is sticky it's still lower priced than some of the competitors out there. >> people say it's cheaper than paying 100 bucks per month for cable. >> and netflix is spending so much money we know that on content, crowing its base. >> this is the only way to grow in the u.s they're not adding u.s. subscribers basically they're looking to price to grow. >> exactly they need to use the capital to fund the content they're creating all of the content they've taken

on risky debt to finance as well as be competitive. >> goldman estimated 22 billion is going to be their investment in content by the year 2022. >> they are borrowing a lot of money to do it don't discount how netflix is exposed to the 10 year yield more so than any other fang stocks full disclosure, my money manager put me in netflix. it's the only stock in my portfolio that keeps me away. >> do you pay for netflix as a customer >> i haven't for six months but i'm missing a show so i think i will. >> you have to do the -- you have to own it, have it, if you're going to be invested in it. >> i'm thinking of selling it once it gets back to where i paid it. it's one of these white knuckle stocks >> absolutely. we'll have more on the debt of netflix. let's talk about the tsa

turmoil that continues as the number of no-show agents has insured in the shutdown. and now airline employees are doing tsa jobs >> the stress level of these tsa workers must be through the roof as they see the lines, the angry passengers, people missing flights. who wants to fly if you don't have an essential flight you have to take, who's going to want to flying in this environment. >> what if you had to go to davos, michelle? >> not to make the segment about me, i am worried about how much time i have to spend at the airport in advance and starting to calculate -- this might be the one thing -- we ask what will bring an end to the shutdown if you go to the atlanta airport website they have a continuous updating on the lines, they say they're only 15 minutes now.

who knows. >> just like we saw with the polar vortex in 2014, when we get to the next earning season to q-1 results you're going to see people talking about the shutdown the way they talked about weather. for some of those companies, government contracts for example, they'll make up the money. but for some of the retailers rb restaurants, maybe some of the airlines you see lost business they can't make up because it's time that people would have spent money that they won't. >> now it's going on so long delta saying it's losing $25 million from this? let's talk about huawei saying it would never allow the ceo to access data. and coming out and praising president trump as well. remember, the cfo's daughter is still under arrest in canada at the request of the u.s why do you think the ceo is now speaking out >> he has to try to save his

business he's getting shut down all over the world, as the five english speaking companies said no more huawei the new polish spying accusation as well. he has to say this on its face it has to be untrue. it's the law in china. if there's a national security issue you have to hand over the data that happens in the united states, too, where we have a much more robust system of law >> he's going to come out and say no china doesn't use our equipment to spy but until the chinese law itself changes >> he kept saying there's no back door way to get in. that's not how it works. when you go to g 5 you're going to precisely know where nearly everyone is with their phones. >> oh, joy. >> it's not for him to say from what i can tell. >> they have lost tons of business now, it ain't over yet,

either >> it wasn't just citi and jpm that got hit traditional asset managers were dragged down, too. this has been flying under the radar screen not for them. >> as went the market so went the traditional asset managers an important point is the fact there were very few winners in any market say you run a diverse fied business everyone suffered in 2018. >> if your business is to take 1% of assets under management, and aum is shrinking everything, doesn't everything shrink? >> that's it it's shrinking by virtue of the fact that the market is losing money. and these funds are also seeing massive outflows and redemptions. i think we have a full screen chart that shows the relative performance for some of the biggest asset managers last year the ones who did better, black

rock mainly, they benefitted from their atf business, inflows into those areas which you can take -- you can buy an atf and short. so if you have a more bearish take on the market-- >> you can hedge it a little bit. can't leave without talking about this nike is unveiling a new pair of self-lacing shoes that can be controlled through your smart phones, they're called the adapt bb sneaker they have laces that can tighten or loosen at the press of a button they're available for preorder today. brilliant way to get publicity for the shoe, but who's going to press a button to tie and untie the laces? >> you have to down load the app, have the smart phone there, charge the shoe, change the batteries out, do updates on the app. for $350, i'm going to bend down and tie my own shoe lace i'm also not athletic, so maybe

basketball players. >> is this really a hot new product that people are going to pay -- are you going to buy a pair of these? be honest. >> i got on and tried to log on. i was initially skeptical then i watched the whole video. little kids don't learn script anymore, now are they not going to learn to tie their sneakers either >> it's a right of passage of being a 4 or 5-year-old. >> bunny ears. >> the bunny ears. i didn't even think about that another way technology is destroying society we'll leave you on that brilliant note thank you on rapid fire today. day 25 of the government shutdown, both parties are still at a stand still we'll keouo inonta y twashgt next the exchange is back in two.

welcome back

we are nearing the one month mark of the government shutdown. and leaders on both sides are standing firm. joining us from capitol hill is congressman john larsson, the democrat from connecticut. congressman, thanks for joining us. >> happy to be with you. >> are you hearing any signs of movement, sir? i wonder if the democrats should stand up and say we're tired of this, we'll take the hit and turn the tables on what the president said last month saying we're going to reopen this, give you the 5 billion we want to see the country back up and running? >> we're going to vote this week on a continuing resolution to reopen the government. it makes no sense to shut the government down and to call it a crisis the real crisis is that the fbi, border security, and tsa are not getting their paychecks. some are furloughed, some are going to work and it's hurt all aspects of government. we're going to continue to pass legislation to keep the

government open. >> are you going to put in the border wall funds -- >> 25 million was offered in february -- >> would you put it back on the table? >> i think everything should be on the table the important thing is we get people to sit down and discuss and not go to their respect i've corners. the president shut down the government our goal is to open the government these employees should not be punished, whether the president thinks they're all democrats or not, because of the duties they perform that are so important to our national security. >> would you vote for a bill that reopens the government and provides the president's request for border wall unding >> i think funding has to be part of any discussion the question is, is it an intelligent discussion i think when i listen to representative herd, who has the largest stretch of border in the country say that this is absurd when you start with eminent

domain and go through the miles, it just doesn't make sense we need to sit down and not have just a political discussion but a common sense, practical, technological -- >> i understand that, but some in your party had said, give him 5 billion, 25 billion, go try to spend the money, get tangled up with eminent domain, have at it. we're going to reopen the government and it's never going to come to fruition anyway. >> i don't know who said that. i can tell you this, there's a growing sentiment on both sides of the aisle that someone has to stand up to the guy on pennsylvania avenue and i hope the senate finds the courage to do that because the house will continue to pass legislation the real crisis here is we have shut down government and put the key people we need in the field out of work. >> i'm glad you're here today because i want to ask about a major issue for 2019 and 2020 as we've seen presidential

candidates declare themselves and start talking about medicare for all. certain members of your party have started talking about that. you put out a proposal that would let people buy into medicare at age 55 how much would it cost -- >> it's revenue neutral. when you look at it, what we would do is make the medicare population younger and provide an opportunity that many aging employees find themselves -- and employers, when they look at their balance sheet and find out how much it costs to keep somebody on their program. the kaiser family foundation did a study that finds that buying into medicare at age 60 would be 40% less than getting the gold plan under the affordable care act. we think it's cost-effective, common sense and will help us in terms of solving the health care concerns that the counted has. >> before i let you go, what are you hearing from republicans about this issue, in terms of

its viability? >> we're just organizing right now. one of the things i want to commend chairman neil for, the first thing we'll do is have a bipartisan dinner where we sit down with the republicans and talk about coming together and coming together on solutions, whether it be health care, infrastructure, whether it be social security, these are the main concerns -- >> would you rule out medicare for all? is that the ultimate step? >> i think that everything deserves a hearing and one thing we haven't had in regular order are public hearings we need people to come in from all stripes to talk about what makes the most sense >> all right congressman, thank you for your time >> happy to do it. >> appreciate it congressman larsen from connecticut. still ahead and the next debt crisis goes to hollooywd. look at the staggering numbers and potential impacts on media stocks when "the exchange" comes stocks when "the exchange" comes right back

what's in your wallet?

i am a techie dad.n. i believe the best technology should feel effortless. like magic. at comcast, it's my job to develop, apps and tools that simplify your experience. my name is mike, i'm in product development at comcast. we're working to make things simple, easy and awesome. netflix announcing fourth and largest prime increase so far since the streaming service launched 12 years ago. spiking 12% on that announcement up more than 50% from their december lows. but the stock popped every time it announces a price increase. what could be behind the raise

in riprices in-depth look at hollywood and netflix and the debt they're taking on to finance the content spending how much is too much at variety, welcome. >> thank you >> focus on at&t, which has bought directv, they bought at the top and overpaid hasn't panned out. completed the purchase of time warner they had a ton of debt remind us just how much. >> they have about 170 to $180 billion, not that they're going to have to deal with here and dealing with this debt at a time when they're about to launch their own streaming service competitor to netflix which requires an enormous amount of capital. so i think the street and investors are really interested in how does at&t do this

it has to do it really deftly. they can't get so that they're left out to dry. >> you guys likened it to driving a stick shift car. take the foot off the brake and shift gears all at the right time to pull this off and so far, the economy and capital markets allowed for that and if we had any kind of speed bump, this would blow up and then you mentioned comcast, right >> exactly all of this merger and consolidation activity in the media space has been enabled by debt and a lot of that has been enabled by low interest rates but if those interest rates continue to rise as they seem to be, these companies could be dealing with a real pickle here. >> i thought the viacom analogy was interesting because that stock, of course, has been creamed. they've had a change of ceo. you mentioned at the time, they were doing a lot of share buybacks, which the big companies have also been engaged with

they've been ill-timed in retrospect should have been investing in content instead but would you go so far to liken the huge media players to the situation at viacom which it finds itself in? >> i think it's interesting to look at what happened with viacom and its debt but i will give disney and at&t and comcast credit i think they're looking at a future in which people are not, you know, buying blu-rays or paying for cable they're cutting the cord how can we compete and the answer is to go direct to consumer. that's a big fold bet and requires debt right now and that's what they're doing. you have to give them credit the question is, do they go and look at this future, see a changing kind of consumption pattern but make the pivot at the exact wrong time >> brent, real quickly, the disney was getting $100 million f from netflix and now doing its own thing. would they have been were to keep taking the cash than to try

to go it alone >> on their balance sheets, it would have been better, right? getting rid of pure profit but over the long-term, their idea is we control our content and our future >> and we'll see if they're right about that thank you so much from "variety," a look at how risky those debt levels could be shares of chipotle ticking higher, positive on the state of the consumer and the company's growth potential growth potential l tseetlsreext. that's built to handle all your apps. ♪ ♪ the ibm cloud. the cloud for smarter business. the ibm cloud. moit's not theirs, it's mine. the rx350l with three rows for up to seven passengers. lease the 2019 rx350 for $449 a month for 36 months. experience amazing at your lexus dealer.

welcome back some of the biggest names in the restaurant space are gathering in orlando, florida, right now that includes chipotle's ceo brian nicholl and kate rogers who is live now and he's optimistic about the consumer, right? >> reporter: that's right. good afternoon we got a chance to chat exclusively with ryan nicholl and very confident about the consumer through the lens of chipotle take a listen. >> the consumer data we've seen is the consumer continues to be very confident there's obviously a lot of noise surrounding their life, but

jobljobs continue to be healthy and gas prices continue to be low and sentiment very positive. >> reporter: right now, chipotle focusing on key areas including the company's menu, marketing, operations and digital represents a huge growth area for them about 11% of their overall sales. that's an area they'll continue to push into in 2019 and kelly, there is a chipotle loyalty rewards program they'll be expanding throughout the year. so we'll keep an eye out for that as well back to you. >> why is kate is talking to th prime minister of canada i think he looks just like justin trudeau thank you, anyway, good to get the prime minister's take on chipotle "power lunch" with the ceo of domino's and we'll see you then. early in the show, we asked about this price hike from netflix. asked if you would cancel the service or reconsider signing up 44% said yes 56% said no. still the majority says i don't

think so if they do, they'll let you know and does it for "the exchange," everyone i'll join tyler and melissa which begins on "power lunch" right now. kelly, thank you very much welcome to "power lunch. i'm tyler mathisen new at 2:00 on this day, the big vote on brexit set to get under way. some preliminaries first major consequences for investors in global markets at stake here. rising prices and raises prices and chill. that's what netflix is doing and it is soaring on its big price hike in a bold new call on the fangs. and it ain't called "power lunch" for nothing the ceo of domino's pizza here live >> good pizza. i'm melissa lee. the netflix nudge. news, the nasdaq getting the biggest pop. all things are up across the board and major averages up for the highest close in over a month. despite today's gains, risks