>> ar illu mrcar. illumina >> cisco great after earnings yesterday. >> "the exchange" with kelly evans starts now here's what's ahead. >> the president declaring a national emergency in order to build a wall will it survive a legal battle and how much would that cost we'll discuss. bye-bye big apple how amazon's retreat from queens could be rewriting the playbook how big companies do business with the government. >> the yacht industry can't escape the impact from trade war and tariffs. we begin with dominic chu. >> the dow is up 350 points.

we're just off the best levels of the day the s&p 500 also up by 23 points as well. so all the sectors participating generally speak with the rally however check out what's happening with some names. sectors like energy as oil prices go higher those stocks doing well. financials doing well. on the down side you have the laggards, like utilitys. one stock that's sitting out this rally, the only stock as of a few moments ago that was negative in the dow jones industrials average, believe it or not, are was apple. those shares lower on the day. some traders pointed to the idea in the latest round of 13 f filings, warren buffett reduced their position ever so slightly by 3 million shares. they still have 249.5 million shares of apple. that stock a big one to pay attention to >> we have some breaking news on

uber let's get the news line. what are you learning? >> kelly, we have full year financials from uber as they reported them. it's still a private company but been making more financials available. they narrowed losses last year but continued to grow ref from you. 11.3 billion, up 43% year-over-year it's down from growth of more than 60% the previous year gross bookings, this is an important metric, 50 billion for the year uber has nochd a ton of losses continues to do that but less than before adjusted loss. they fell 15% to $1.8 billion down from $2.2 billion in 2017 the fourth quarter over the last quarter adjusted losses they ballooned to $668 million on revenue of $3 billion.

2018 that was his first full year of ceo. under him the company has pulled out of unprofitable markets like russia and southeast asia. at the same time he's making some big expensive bets like uber acquisition of the viking scooter and doubled downed on uber eats and freight. uber is on track to go public this year. >> is there any signs -- just to reiterate the revenue growth dropped from 61% in 2017 to 43%. for a company like uber, while that's still, you know, great growth, is that going to turn any investors off the ipo, the fact accelerating and still reporting losses >> well, a lot of the deceleration has to do with the number of investments they do. the ceo is retreating from

unprofitable markets and spending a lot to shore up their market position before that ipo. but 43% is still a pretty formidable number and would be viable by most public companies. they are reaching normal idon't know that will turn off investors. >> thank you so much some positive comments on trade from the white house today is helping to fuel the rally that you see we got a nice rebound in consumer sentiment this morning and that helped to shake off the awful retail sales report yesterday. the dow is 5% away from its october highs. how is this for a come back. industrials, energy and tech are all at 20% from the christmas eve lows let's bring in steve grasso. hello, steve thank you for joining me today >> no problem. >> i wonder does this rally have you a believer, finally, steve >> new york it doesn't when you look at it, kelly, i

saw the balance. it is perplexing stood here on wolf's show on the 26th of december and said i see a 10% rally. this is overextended for me. this is in no man's land we're running into resistance. china the longer it goes the more people will get sucked in on the floor and any large institutions into buying the market, but i do believe ultimately there will be a slide down, maybe not the same precipitous dropped we've seen in the basket but a slide down nonetheless to much lower levels >> is that because you're caution on the economy the valuations we saw at the bottom were very, very low for skoes. you could have gotten facebook at mid-teens valuations for a company that's growing quite fast why do you think that the rally, you know, for it would be unwarranted. >> look at the goldman sachs data they have been come plielg

on outfloss. these are record outflows. that's the longest outflow streak on record over $80 billion if you look at that, who is buying the market, kelly it seems to me this is a little fishy about positioning and more about algorithms versus anything else >> what would be the level you want us all to watch now >> you have to look at the 200 day moving average in the s&p. we're above that right now but there is incredible resistance around the 2800 level to 2861. that would be a quadruple top. those don't exist. be really careful around these levels right now >> all right quad top got it steve, thank you so much have a great weekend steve grass jo now to washington where the president has declared a national emergency to secure funds for a border wall. eamon javers is live at the white house for us with those

details. >> reporter: that's right. the white house tells us the president has now officially signed that national emergency declaration and in the rose garden just a short time ago the president laid out his expectations and those include the idea that he's not going to get a lot of this money spent right away because he expects legal action here's what he said. >> i'll sign the final paper as soon as i get into the oval office and we will have a national emergency. we will then be sued they will sue us in the 9th circuit, even though it shouldn't be there and we will possibly get a bad ruling and then we'll get another bad ruling and then we'll end up in the supreme court. >> reporter: so, kelly, the president there predicting a long legal fight for this national emergency declaration that he sign at the white house here today but politically it's a win for him particularly with his political base they counted on him to deliver on this core campaign promise. he said the reasons he's doing it beyond just the campaign

promise but that was important to him in those rose garden remarks. nancy pelosi and new york senator chuck schumer are saying they will defend the constitutional authorities of congress in courts and in the public using every remedy available. let's bring in hugh hewett perfect guy to talk to about the legal obstacles or lack thereof from here. is this going to with stand scrutiny in courts >> anyone who says they know the answer to that, kelly, is puffing up their own ability to see the future there's been a lot of unilateral executive actions in american history beginning with the louisiana purchase by jefferson. lincoln's emancipation proclamation through clinton's bombing of iraq in 1998 and president obama's bombing of libya in 2012. what happens in each of these is they are subjected to what's known as the justice jackson

test that dates back to 1952 when president truman seized all the steel mills. at that point there were three categories of action those with support, those with no support this is a zone one category. i do believe if the lawsuit is brought even in the 5th circuit the president might win at the appeals level he'll have a good shot winning at the supreme court. >> you said it's important where the funds come from that he's going to use how much is he trying to raise, and. how much are the border wall is he trying to build >> reporter: ultimately they are talking about $8 billion not clear exactly where that will come from they are going to take some money from military construction funds that the pentagon had been appropriated earlier now the question is what military construction are they going suspend in order to reprogram that money over to the border wall. white house officials not answering that question here today.

probably because all of those military construction projects have defenders of their own and you can avoid stirring up a hornet's nest to protest around shutting down those programs by not saying as long as you can by saying what programs you'll shut down >> the "new york times" is a great explainer. they say the president is allowed to delayer this but has to explain which statutes are being activated. two could allow him to proceed one allows other resources to help construct authorize civil wax, military construction, and civil defense projects that are essential to the national defense. it would seem like the border wall could fit that description. >> i would say he will cite that statute. he'll also cite the secure fence act of 2006. he's got a lot of things to cite 59 past emergency declarations dating back to 1976. there's a whole bunch, a who

host of precedents he can cite the question is whether or not he'll find friendly five person or greater majority at the supreme court. and i don't think it will take a long time to get there because it is poised as a national emergency. and will move quickly. >> how quickly >> let's say six months. hopefully they have lined up a landowner in texas to bring a challenge to the defense that will cause eminent domain. go to 5th circuit. then they send it on up to the supreme court. that's a six month and could hear it next year. and it might not get an injunction against it. he might be able to start building nobody knows >> versus if it came up through the 9th circuit, less friendly the president has called that district out before. that's one scenario. could be fast tracked so to speak. but how do the politicians proceed in the meantime? what happens along the border in the meantime >> reporter: that's an open question we don't know the answer to

that i have a question for hugh the politics of this are so fascinating. there was this moment in rose garden when kelly o'donnell asked about the conservative pundits and what he thinks about those folgs and if they had any impact the president said they don't support him automatically they support him when he's doing things they agree with what do you think of that and the president's relationship with the sean hannitys of the world and how much he's thinking about that when he makes this declaration today? >> president weighs input from all sorts of voices including those connected to his 40% base. he reads the "new york times" and "washington post" every day. you saw mitch mcconnell come out and support the president. you saw lindsey graham come out and support the president. i'm one of those balls and strikes guys when he does something wrong i hate tariffs except china. but when he increases military spending i applaud

his judicial picks have been better than any president in my lifetime there's a lot of good i like about him, about this fence. it's an open question. i want to wait and read what white house counsel and new attorney general bill barr have put together in their argument that will go before district court judge. it's really -- i've been teaching these cases for 25 years. closest case i've come across. i have no idea which way it will go because it depends on brett kavanaugh, john rockets and others here's what else is coming up on "the exchange" >> announcer: ahead big tech's new power playbook plus rocky waters. even the yacht industry isn't immune to the tariff battle. and ea soared on its new apex game

one analyst says it's all overhyped. what do advisors look for in an etf? i tell clients, etfs can follow an index, is this is "the exchange" on cnbc it's not about quantity. it's about quality. no trendy stuff. i want etfs backed by research. is it built for the long-term? my reputation depends on it. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence. before investing, consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. servicenow put our this changes everything. you're right sir... everything. no not everything, i mean you're still blatantly sucking up to me gary. brilliantly observed, sir. always three steps ahead. six steps ahead. sixteen. so many steps. you done?

a million steps ahead. servicenow. works for you.

want more from your entejust say teach me more. into your xfinice remote to discover all sorts of tips and tricks in x1. can i find my wifi password? just ask. [ ding ] show me my wifi password. hey now! [ ding ] you can even troubleshoot, learn new voice commands and much more. clean my daughter's room. [ ding ] oh, it won't do that. welp, someone should. just say "teach me more" into your voice remote and see how you can have an even better x1 experience. simple. easy. awesome. welcome back the blame game is under way after apz cancelled to build a second headquarters in new york city the issue may be how companies may negotiate with cities.

let's bring in cleveland technology correspondent and john fort. you highlighted the way this backfired on amazon. >> there's lessons from both cities and for amazon. for amazon certainly, this s-i think politics 101 i'm more on the tech side. don't you want to always bring in locals and how to deal with the locals the big lesson here is really that there was a lot of local politics involved and, you know, they were playing the outsider game when you've really -- i think got to set up shop with the locals >> the mayor, the governor was involved bill de blasio who is a progressive guy, who had misgivings on business signed off on this. >> they might have thought that. there's precedent for this being an issue for them. if you look in the bay area, silicon valley, east palo alto,

amazon moved in. google is trying to expand in san jose high paying jobs around 20,000 of them and there were protesters outside the city council saying housing not google so, there are these kinds of issues where if they were paying attention they should have known that there would be push back. the poll numbers were still in their favor. to me there's still a question why did they pull out instead of decideding to fight this one >> why fight eight when all the signs not just a fight to get the thing started it will be a fight through and through and into eternity. >> amazon really needed to make a decision between do we want to mick the place we most want to be or do we want this bidding war, beauty contest, reality show it seemed they went in the other direction. if do you that you might as well take an area that embraces you, that wants you >> so many wrars did the fascinating thing is this was such a publicly conducted search process and yet a

privately negotiated actual transaction. so the transparency, they had it on the one hand and not on the other. >> sure. i mean obviously virginia made all the sense in the world near d.c politics they envisioned a tougher regulatory environment going forward. there were a lot of alternatives to new york city but, again, i think there's lessons for both sides i wonder if the city particularly for queens like if the next downturn hits they will regret not having those jobs again lots of people are coming to new york city >> john, you guys had a fascinating debate with some local congressmen. i heard the example being pointed toby the congressman who is opposed to this deal of the tesla factory up in upstate new york the foxconn deal has gotten terrible press those two projects were kind of pipe dreams.

they were areas that didn't have the existing infrastructure but were parent to develop it. you hear tons of places announcing we're build agnew silicon valley and never goes anywhere new york already has jobs and growth and a subway system this would bolster that. that the difference? >> maybe it would. i think it's false to argue that every incentive is bad if you look at south carolina what bmw did down there. the auto economy sprung up that worked. we had more than 20, 25 years to look at that working in this case, new york has had apple, google, s&p, others making commitments to move in. it's not like it's just amazon there's a lot of renters in queens who frankly weren't going see benefit from this. >> i would expect most of the opposition to come from right around there our rents will go up displace us. massive struck project subways are overtaxed. that goes back to your point which is those constituents need

to feel like they are sacrificing something for the greater good when they said we would shut down the l train, okay my life will be disrupted but it's for a greater good >> i think they had to make that case that's what didn't happen. again i think the governor and mayor also should have helped them realize and could have done things they could have come in and said here's what we're doing. >> how to grandfather some people in. >> i don't know how that works >> amazon should have known. people like you protest when big tech moves in. data wise they know what happens in areas like this, so the fact that they just dealt with the people in power, didn't address the people on the street until late, maybe they learned from this moving forward. we'll see. the fact is they need an educated workforce, they made the argument that d.c. area and new york area were the only places to find it. >> people will still see if

there's a way to get them here thank you both coming up call it the shipping dafisaster dejur. what amend may have done to send these shares lower ys> and one of our next guests sa wall street is wrong about this next game he makes his case ahead.

welcome back to c"the exchange". pepsi shares are higher. coke, the company issued a weaker forecast because of foreign exchange pressures pepsi up 3% after coke's awful day yesterday. deer is blaming the trade war for an earnings miss citing higher costs for raw materials. deer's revenue beat forecast shares were down 2%. 2.5% despite that. nvidia is higher that stock still down 35% in the past year but up 2% for the session today. over to sue herrera. here's what's happening at this hour. acting secretary of defense pat shanahan says he foresees growing the international coalition that's been fighting isis in iraq and syria this after meeting key members of the u.s.-led coalition in

munich . >> today my fellow ministers and i took steps to not only solidify our progress in the middle east but to look beyond it we discussed what the future of our coalition looks like i, for one envision a bigger and stronger coalition going forward. >> justice ruth baden ginsburg is back on the bench the 85-year-old justice has returned to work at the supreme court building for the first time since lung cancer surgery in late december she's attending the justice's friday closed door conference to decide new cases and russian president vladimir putin training with the country's national judo team in sochi on thursday. russian tv showing putin a judo black belt holder in his own right throwing one athlete after another on to the floor. there he goes. as if anybody is going to throw him to the floor >> probably not.

>> that's the news update. >> how old is he >> he doesn't want anyone to know how old he is >> he doesn't either >> fountain of youth tyler mathison >> we'll talk a little bit about amazon we have former vermont governor howard dean. >> i wonder what dean thinks about this >> i'll let him speak for himself. he's basically, says that the subsidies are the price ever admission for attracting companies that bring large numbers of jobs. he nuances that a bit, if you can use nuance as a verb, which i just did he doesn't think subsidies for professional sports teams for example after good idea. so we'll talk about that we'll talk about what's happening in the condo market in long island city queens since amazon announced they are coming

and what's expected to happen that they announced they will leave. we have the nba commissioner adam silver. david stern was there for so long adam silver. he's done an amazing job revenues has doubled since he took over. we'll talk about the state of the nba. >> all right we'll see you. here's what's hide on "the exchange". the death of toys "r" us, not just hitting toy companies looks like huawei may not need the u.s. the former uber ceo is back. and regretting that tweet? soon you may be able to clarify it it's all aadn pifihe irad re

welcome back let's catch you up on a few more stories. it's time for rapid fire and here with your takes is morgan brennan, michelle caruso-cabrera and john fort. first topic is newell brand. forecasting a lower outlook for 2019 what's going on with the

consumer or is that not what this is about? it's all above retaliatory tariffs, strong $. organic sales weak, falling. it's a big deal. comes for a company that spent $15 million to acquire darden. seems like a mess. >> i would be concerned about saying it's the consumer completely they've been a mess for a long time last summer was the fourth time in a year they cut their forecast this company has been in trouble for a long time. >> down 20% today. also talked about how the footprint of yankee candles is hurting them like everything you could possibly think of is -- they are kitchen sinking it >> frankly i think they are not exactly broad when it comes to demographics there's a lot of little microtrends. yankee mall, last time i was at the mall and containers.

if you're ordering in maybe you don't use those so much. so there's a lot of little things overall, yes >> i never repackage chinese leftovers. >> whole idea is not to do more work >> let's talk about uber he told you about the financials easterly the co-found certificate working on a new venture after being ousted he's now using some his proceed from a billion and half dollar uber sale called cloud kitchen >> we saw the implosion of munchery which be their own restaurants and then do delivery he has an interesting model. existing restaurant, we'll be the kitchen for you. make your food and then deliver it that's like a shopify for food shopify doing very well. >> supply chain. >> yeah. like the white label kitchen >> it's very smart

labor has gotten expensive because of the rising minimum wage you want to reduce the amount of labor. we're already seeing delivery only restaurants in new york city >> real estate is so much cheaper because you don't have to be anywhere convenient. >> this cap, tacks on to this trend. we have 5g. now that 5g is coming more capability >> city storage systems which is the company here they repurposed distressed real estate for new purposes food delivery, kitchens but ecommerce uses for companies as well and when you're talking about something like the mall, you know, we've seen a lot of empty space and why not put it to use in another way. >> more delivery options and yes uber eats i'll be for that i'm getting sick of the rotation chinese smartphone brands claimed 32% of sales in europe last year.

tech fine huawei was about a quarter of that. call it a 12th of the overall market what are the ramifications of huawei making hand set in europe while other nations are cracking down on using its networking equipment. >> i don't think the implications are too huge. a lot of these are cheaper phones what they want to do is move up market >> are they trojan horses. if they want cheap mobile phones from huawei might that affect their attitude as well >> you're asking are they worried about spying if we see huawei phones. >> are they not worried about spying are they thinking yeah, sure, u.s. you guys worry that over here we wouldn't mind >> that's the trade off that they are wondering about right? cheep products for consumers but at what cost in other issues i'll say this, the one thing, i've seen a lot of people with the huawei phones and i ask why

do you carry that. they have a particular thing they like about it two different phone numbers. americans don't -- people in europe tend to have phones for different countries for different parts of the world if you live in hong kong you had a mainland china and hong kong phone for many years now you can put two in the exact same phone >> that took apple for a while to adapt >> is it even available >> they have an idea for dual but they haven't broadly deployed it. huawei has put out a lot of innovations in the camera, screen and dual sim. it's too soon to say they are capturing the profitable end of the market >> i got my eyes all over this one. let's talk about the shipping stocks xpo and fedex, xpo is falling. amazon may be to blame there's this report that amazon may be handling of its own last

mile shipping. >> jpmorgan, citi, a number of those notes. xpo just put out its earnings. they missed. they guided lower. one of two reasons first is weakness in europe second reason is because they actually saw a loss of profit due to the postal injection business with our largest customer, some of that business go right up to the last mile their largest customer is amazon the other thing i would note with fedex they announceed a big leadership change. new coo last night so that's putting pressure on that stock >> did people who follow xpo not know this was coming and b, if there's a white van, the rental company that shows up all the time to drop-off my amazon packages is that what we're talking? are those the drivers doing i

themselves >> when you talk about postal injection business you're talking about handling packages that will ultimately make their way to the local post offices for that final delivery to your door step. almost like the middle man the thing that i think is so striking is for years now we've been hearing amazon is bulling out its transportation network and going to affect the revenue for u.p.s., fed exand other players. there had not been any signs that was happening yet maybe this is a signal that it's starting to change >> reminds me of when disney, espn is showing some signs and the stock tanked and took years, one of has to moments of great realization. finally twitter users may never get that edit button but there may be a compromise. at the goldman sachs tech conference dorsey says they are considering a way for clarification. >> why is this so hard we had this for years in other

apps you want to see what i wrote before okay now you see what i wrote now facebook did it years ago. what's taking twitter so long? i don't know the for some reason they like us to mess up >> there was an argument at one point they were being saved in a library of congress and you don't want to alter history. that's not true any more library congress hasn't figured out how to manage the tweets that was part of the rationale >> they want to make sure people can be held accountable for that track record to your point about the technology, there must be a way to link this so i guess the idea is if you click on a tweet that someone has now and basically changed what they said in the past you see all of that history. >> yeah. not hard microsoft word does it >> exactly you can find old tweets that have been deleted. >> the timing is interesting you had that twitter based interview between swisher and dorsey very hard to follow.

even jack dorsey came out and said we have to take a look at this because the thread is complicated. i wonder if this is one more piece of that conversation >> it's difficult to do this on the back end to make it work smoothly >> is that what it took for them to figure out twitter threads are hard to read >> no. increased scrutiny >> i don't know how to create one yet. i know how to follow them. >> you can knit, create -- >> if somebody else like elon musk got in that conversation and hillary clinton and you got all they entry points wait what were they talking about. >> our message to twitter is get to it. thank you all very much. coming up, it's been hyped as the new fortnight and a big money maker for ea but our next guest says wall street is wrong about apex legends. he'll tell us why.

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nice rally for this friday the dow up 325 points. best gaper by far of the major averages the blue chips are up 1.3% 25761. s&p is up 20 points. nasdaq is up by 20 nasdaq is up a quarter of a percent as we close out this hour shares of electronic arts are surging 8% on its success of the new game apex legends. that game hit 25 million users in just a week prompting some analysts to call it the hottest new video game in years. some say it's the fortnight killer one wall street firm say investors should worry about the hype welcome to you both.

doug you're not a believer what do you think is really going on with apex here? >> we think it's a great game. if you look at the move in the stock it might be too much too soon the market gap of ea in the last week super7.5 billion. if you compare that fortnight they were valued last year at $15 billion at the end of the year 15 billion they have other products other than fortnight if youthink about sort of an apple to apple comparison the market is valuing apex at 5 to 56 billion versus fortnight. its move and it feels like the market is expecting that apex will be this huge hit and it just started >> what's e a's market cap >> over 30 billion >> i could see it as the hope by the investors is hey if you can even get close to seeing the kind of growth fortnight did you're market valuation is more attractive 8 billion on what 22

okay maybe they have 25 or 30% market cap. is that fair if they show these kind of growth prospects >> think about the upside. say apex becomes the next fortnight. on that market gap that's another 20%, 25% move. >> todd what do you think about the game >> i agree with doug because i thought the game was fun to play more my style. i'm not crazy -- >> it looks beautiful. >> i'm not crazy about these games where you die and have to start all over again there's a lot of pest. we're making a jigsaw puzzle we got a lot of pest including a large player base. but ea has to show how to sell people things. whether its content is as appealing as fortnight >> what made fortnight so addictive and attractive >> that's a great question a lot of it was that they have these fun costumes kids could dress up with a bunny

or an elf. they were paying for these things because their friends didn't have them then they had these cultural expansion things where they had a concert with marshmallow and people game came in the game apex legends needs to take this path fortnight has created a story line everybody is addicted to the story line and coming back for more apex needs to show they can do that keep the players and keep making money. >> i can understand if the simple novelty value was always going to being a greater for fortnight than a repeat. that might ware off but the neighbor's kid who was a big fortnight guy, fortnight the craze is over. >> apex and ea have done two things really well they made the game free to play. low barrier entry. anyone who wants to try the game

they can they did a great job with the streaming community. when they launched the game two weeks ago they got the most popular streamers to play. they sponsored them. what we saw happen what was ninja plays with his friends gets his followers they play and tell their friends to play and you have this network effect so i think part of it maybe was people were tired of fortnight but epic games is not lying down they announced a promotion recently where they are giving away free battle packs a battle pack is worth $10 you have to do something in the game over the next two weeks to get it they see the threat and trying to head it off >> it's fun to watch it play out as they battle for this new territory. i appreciate your point about ea guys, thank you so much. still ahead on "the exchange" trade war is having an impact on many industries. fred is live at the miami boat

show with a surprising story >> good afternoon. we're here in miami at the largest boat shine the u.s.. we're talking to boat makers about retaliatory tariffs and the impact it's having on this industry as a whole and on sales. that's coming up on "the exchange". your daily dashboard from fidelity. a visual snapshot of your investments. key portfolio events. all in one place. because when it's decision time... you need decision tech. only from fidelity. you need decision tech. servicenow put our this changes everything.

you're right sir... everything. well not everything, i mean you're still blatantly sucking up to me gary. ahhh... stop it. servicenow. works for you.

want more from your entejust say teach me more. into your xfinice remote to discover all sorts of tips and tricks in x1. can i find my wifi password? just ask. [ ding ] show me my wifi password. hey now! [ ding ] you can even troubleshoot, learn new voice commands and much more. clean my daughter's room. [ ding ] oh, it won't do that. welp, someone should. just say "teach me more" into your voice remote and see how you can have an even better x1 experience. simple. easy. awesome.

welcome back we've been bringing you tons of stories how trade war has been impacting different industries the boat industry is no exception. let's bring in frank holland who is at the miami international boat show. torture watching you down there. what your hearing? >> it's a tough assignment but i appreciate cnbc for sending me we're talking about serious business we're at the miami boat show and talking to u.s. boat makers just about the situation right now when it comes to tariffs they are hoping domestic sales will make up for an expected forecast loss of half a billion in international sales that's primarily due to retaliatory tariffs and european union. tariffs are changing that. the trade group for boat makers says the industry lost about a quarter of a billion dollars in sales in 2018 and that number is

expected to double this year to half a billion brunswick boats the largest publicly traded boat maker are projecting their pre-tax earnings loss due to tariffs could be as high as $22 million. their 2018 numbers, that's about 6% of their 2018 pre-tax earnings a serious situation overall. not all doom and gloom boat industry overall is expected to have an eighth consecutive year of growth if tariffs continue or if the u.s. takes a down and sales take a downturn that can lead to production cuts and layoffs. >> why can't they pass the cost along? >> you know that's a great question unfortunately international customers they say they just don't want to pay it people are buying high end boats and they don't want to pay extra for a tariff they want to pay for luxury but not an extra tax >> frank, thank you so much. less pricing power than i thought.

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today the u.s. issuing new sanctions against key allies of venezuela's disputed president nicolas maduro michelle caruso-cabrera got a chance to sit down with colombia's president last night and he had some strong words about maduro's future. >> his days are over so now the military, who are the ones that have to make the next shift, the turn, the change, they have now to support president juan guaido because what is the other option continue with a leadership that has impoverished an entire population the deterioration of all liberties? >> michele joins me now. he was very strong >> extremely and he's been strong even when he was running for president he was very strong he wanted to do something about the situation in venezuela, much stronger than his predecessor. we wait to see, though, what

happens. it's been three weeks since juan guaido named himself interim president and maduro is still in place in venezuela we're at a stalemate what is plan b >> what breaks the stalemate >> part of that answer is what we're seeing from the u.s. government with more and more sanctions. because remember the greatest theft in history occurred in venezuela. all of that oil revenue departed the country and it is sitting in bank accounts overseas billions and trillions, a scale that makes brazil look pathetic. when they go after these individuals like they did today that's to prevent them from accessing that money so a constant economic aff fix. >> for the population itself that's where colombia comes in they have been trying to get across the border to get supplies we send humanitarian aid down and venezuela blocks it. >> we have a showdown coming on

february 23rd. interim president of venezuela says that's the day the aid will come in. how? it's coming in through colombia. the president assured there would be people there in order to assist the aide workers to get the aid across the border. and it's meant to be -- let the whole world watch and see what does venezuela and the military decide that day with starving people if they take in this humanitarian aid we wait to see doesn't become something military opening humanitarian aid corridor, often means military intervention is that what it comes to >> the president has not even soft pedalled back we know how john bolton feels about it i wonder what the role of russia, china, cuba. venezuela will become a proxy war type of thing. is that putting it too strongly or not >> i think it's too early for

that yet it could be. i'm just not convinced that china will be so vested in protecting everything that they got down there they will be much more tactical. they are willing to negotiate or are negotiating with the opposition in washington >> look ultimate they want the profits that's invested in that country. china needs the revenue right now. would they actually say they have an interest in the new guy juan guaido taking over, getting that up and running and delivering them the money? >> yes what relationship will they have financially with the new government you raise something very important. we're on the verge of what could be the first international debt restructuring involving china. they've never been involved in one before how much will they burden share. how much will they contribute. these are big issues that are coming to a head if and when we see maduro out

final exchange connecticut, the economy in connecticut. same size as it was back in 2004 after you adjust for inflation that's the legacy. they lost a lot of population and business why there are so many broken hearts with this news. that does it for "the exchange". "power lunch" starts now >> new at 2:00 stocks soaring on optimism about trade talks border wall politics still hang over investors can the bulls keep charge. anger over amazon. protesters in manhattan set to go under way businesses and real estate stunned by amazon's decision was it time to crackdown on corporate welfare. all-star interview, adam silver will join us live. we have a slam dunk edition of "power lunch". it starts right now. >> welcome to "power