bells, high heels. it's seen as a social status, as a way to distinguish themselves. $1.4 billion, the most populated country. so if you are a millennial now climbing the corporate ladder, you want to find ways to use discretionary income and help yourself out. >> only one bag a year thank you, seema, great stuff. that does it for "the exchange." "power lunch" begins right now >> thanks, kelly new at 2, top trade negotiator meeting minutes from now. could a deal around the corner inflation, wages, rates and avalanche of fed headlines today. what they mean for this market and $4 billion that's how much warren buffett lost today alone on his kraft heinz stake. almost losing a third of the value in today's session is it a screaming buy or maybe it's buyer beware. "power lunch" starts right now

>> i don't care whether you're warren buffett or not, losing $4 billion is a chunk of change glad you could be with us on "power lunch" as we wrap up another week stocks nicely in the green major averages back to posting another positive week. we'll see if we finish that way. the dow and nasdaq on track now for a ninth straight week of gains. something the dow hasn't done in more than 23 years the nasdaq hasn't had that kind of a streak since mid 2009 for more on that, let's get to bob pisani tracking the action for us from the floor of the nyse >> it's about the fed and trade. let's look at what's moved this week and you could see trade-related stuff, the chinese markets done very well there's a measure of the china stock market, one of the etfs there and trade related. on the upside this week, semiconductors have been roaring ever since that december 24th bottom banks held up. i've highlighted the fact that

health care had problems recently, largely in the pharmaceutical section biotech names like biogen and myelin that was a big leadership group last year and another group that's faltered and inexplicably is oil service docs. we've held up well on oil. $56, $57 or so but most of these big names, transocean, down 3%, 4%, 5% this week back to you. >> thank you very much bob pisani to washington now, and president trump getting ready to meet china's top trade negotiator and that's with some headlines crossing kayla tausche live at the white house for us. >> reporter: we are learning more about the progress with the u.s. and china trade talks two sources who have been briefed on the issues tells me china has committed to buy up to $1.2 trillion in u.s. goods over the next several years in an attempt to cut back on the u.s.

trade deficit. not sure what they would do for export control to control that side of the ledger but that's a large number that's probably attractive to president trump. we also learned that negotiators made some progress on key structural issues including intellectual property where china has agreed to discuss some sort of enforcement mechanism. we're told that negotiators have made enough progress on these multiple areas to move forward despite a road block remaining in the area of forced china transfer and cyber theft which the u.s. argued is state sponsored and told china has not agreed with that claim we've learned the two sides are currently discussing next steps and that would include a late march summit between presidents trump and xi at mar-a-lago president trump's southern florida resort so that is something that has been in the works for some time but we're learning late march deadline or the late march time frame is coming into focus and falls right around the time of a

key conference for big companies in china and some of those companies who plan to attend the china development forum are told some of the trade issues are expected to resolve by that time so watch that space. as for the white house's comment on all of this, press secretary sarah sanders said negotiations are ongoing and decline to comment more on that should hear in a couple of minutes. >> a week left before the deadline to make a trade deal. how has this past year of trade tensions playing out for businesses on the ground in china? dennis, a partner at the firm of meyer, uncivic negotiated more than 30 deals. he went to china last november the latest of more than 60 such visits dennis, nice to have you back. >> thanks for having me back. >> i'd like to take us inside the room and describe what it's like to be negotiating with

chinese business people or chinese government leaders what do you need to be aware of? how is it different from a traditional negotiation that you might be doing in pittsburgh >> in a typical negotiation, you have one person who can make a decision or move the deal forward. in china, everything is collective so you don't know who the most powerful person in the room is. they get together often, confer back with the answer or the response so it's not like a private negotiation. >> is there any question here, other than mr. lu, the head guy in this negotiation. who the president will, who's in the room but that's the point person here. >> vice premier liu is close to xi jinping but he alone would

not have the ability in my opinion to make a commitment unless he had already cleared it with xi jinping. my guess is they were hot on the phones with what would happen in a few minutes. >> when we were together a few years ago after the current president of china took over, you said this person is different. he is a different kind of leader he is the most powerful leader of china since mao does he have the, not the power to make a deal, but the power to not make a deal and run out the clock on president trump >> yes, he does. there are two reasons. first of all, he does not have any political opposition within the country and he literally could be the head of china for the next, let's say 20 years secondly and more importantly, xi is a guy who has a focus on the long-term interests of china and if you look at the u.s. political system, literally,

within the next six months, the u.s. is going to have to decide one way or the other what it does with china. xi has enough power, political, economic, and within the bureaucracy, to hold out for another year that's why he's more powerful than the president because of his ability to say, okay, i'm not going to make a decision yet. >> dennis, authority issued in this trade talk concerning intellectual property and a major sticking point is trying to craft some sort of memorandum of understanding or agreement which would also include the element of enforcement how can you, in your view, craft that into any sort of agreement without making the chinese feel like they're being policed which i would imagine would be a deal breaker? >> i have a suggestion that i was thinking about last night. lighthizer and mnuchin haven't called me but the forced transfer which is what they're worried about, i would say to

the chinese, you don't think you're responsible, we think you are. why don't we transfer for the next 24 months to singapore, for example, independent arbitration. they have something called the singaporean transportation center and let someone else do it if you really wanted to put it to the chinese, see what happens over the next 24 months. that's what i would recommend if asked. >> kayla tausche just reported that the number that is being floated around in additional chinese purchases of u.s. goods something on the order of 1.2 trillion over, i believe, the next decade. i'm not sure the time period was specified. does that number smell right to you? >> no. first of all, we have to be able to sell them things that they want to buy that are ours. if you look at the money, the things we sent to the chinese, about a third of it was aerospace, part of it was electronics and with the total

40% were telephones. only so much of our stuff that the chinese can buy, so them promising over the next ten years i'll buy a trillion dollars worth of things, i think that's unenforceable i'd rather have the chinese say, look, over the next 18 months, the trade deficit by 15% that would be $50 billion. i would personally rather see the chinese commit to that than say over the next ten years, i'll spend a trillion dollars. i think goals in life are better when set in a smaller time frame that you can really measure. >> dennis, thank you very much have a great weekend good as always to see you. dennis rates, inflation, wages, the balance sheet and the state of the american economy a slew of top fed heads. we'll break them all down and discuss what it could mean for the market disaster du jour

s.e.c. investigation, buffet, of course, the major shareholder. where this stock goes from here. 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.

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>> reporter: there's been a lot of discussion at the monetary forum with the inflation and the balance sheet. now heard from four of the ten members of the fomc as well as the reserve bank presidents of the san francisco and philadelphia on the balance sheet, fed governor randy coral saying he believes they should keep both long and short-term on the fed balance sheet as they try to determine the proper size and the proper composition of that balance sheet in the long run. he also said he would support limited sales of mortgage-backed securities as the fed tries to bring holdings all the way down to zero for those types of securities now, on inflation, a lot of discussion about the feds' concern it's missed the 2% inflation target for a number of years and a growing consensus of a new strategy and framework needed in the future they'll undertake a comprehensive review of the

monetary policy framework and as a part of that, going to consider things like average inflation targeting and price level targeting as the fed tries to perhaps make up for the number of years it's missed the target in the past he said that that review will be concluded in the first half of 2020 and the fed does plan to make the results public. guys, back to you. >> ylan mui, thank you and we have also president trump meeting with china negotiators what does it all mean? portfolio manager and rachel akin, vp with rockland trust mischa, are they hot because of the tax changes? >> they are and you've seen overall allocation change from risk on asset classes to bonds overall. certainly after the correction, equity markets corrected the end of last year tremendous inflows in the bonds and that has been due to tax changes as well. keep in mind, closer to tax time, that state and local tax

deduction cap is on the mind of a lot of investors so if you're high tax bracket individual in a high tax state, munis are the only one to provide you asset protection in that shield. >> are people concerned about the long-term fiscal health of the states now that the cap is off? new york, california, those high tax states to say, wait a minute, maybe the population, as they get those tax bills,none too happy. >> i think you're seeing, governor cuomo alluded to the fact that the decline in tax revenues due to an out migration. while some of the high tax states see a little bit of that, it's important to focus on the fundamentals for those states facing vast unfunded pension liabilities and where they haven't made much movement in correcting that, that's going to be very important to watch. >> which of those? >> state of illinois is going to be kind of with the highest unfunded pension liability and

next up would be new jersey. what makes new jersey. >> i was afraid you were going to say that. >> and already high tax state and makes it very difficult. so illinois has raised income taxes, closer to 5% and when new jersey's tax is closer to 9%, how much more can we raise new jersey's state taxes >> we'll talk about the fed before we get into this further. what do you make the comments between the minutes yesterday, the balance sheet and perhaps holding it steady from now on, what does it mean for you? >> so it definitely has been a confluence of information coming out of the fed in the last week or so. really what it's shown us is that the fed is now wearing more of a risk management cap and looking at both being patient as far as rate hikes are concerned but also having the flexibility with the balance sheet which i think is, again, marrying both of those ideas together and creating some calmness in the markets regarding fed policy >> so if the fed is a risk manager, rachel, should investors be more inclined to go

out on the risk kuscurve? it seems everyone wants the favor value over growth. we have had underperformance of stocks should we reevaluate where we are? >> i think looking at the markets in general, we've obviously had quite a large climb back out of the hole we've had at the end of december up some 18% and at that point, you know, what we saw was and have seen is across the board, risk assets and assets across all asset classes, style as well really climbing. and there has been a bit of a risk on mentality in the market. i think on the fixed income side, we're also looking at what the fed has to say, what the ultimate portfolio will look like and what that will mean for pricing with fed assets and where we should be on the field curve. >> i've had a great year so far and only 2 months old. 10% or 12% and why should i take off the table now and forget about the rest of the year >> well, you know what

a 10% or 12% gain in the portfolio doesn't a year make but only in the end of february. if you look historically, strong januarys and februarys, historically about 54% of the time lead to positive returns for the year so we do have some type of history as far as wind in the sails, but also, you want to look at the fundamentals in the market are pretty strong but we see rising alongside tech and financials are industrials and materials as well which can only be reenforced with any kind of trade clarity provided in the day to come. >> you like to see the "s" though after the tough week? >> i knew if i put that in -- >> well, you're asking for it. so here it is. when did you get into cvs and why do you still hold on to snit. >> we've been holders of cvs for several years and i think the main driver for our decision, again, looking at quality companies was the large amount

of free cash flow as well as the dominance in both pharmacy as well as pharmacy benefit management at the time that business model surrender fire and the financial health of cvs moving forward is going to be very much tethered to its successful integration of etna that does seem to be large for 2020 but short-term pain in moving forward for better outcomes for their customers in the short-term which was pretty much telegramed recently when they spoke at a j.p. morgan health care conference. >> thank you very much rach rachel aiken and nisha patel. >> rick santelli at the high tax state of illinois at the cme rick >> reporter: i don't know about high-tech but there's a lot of technical analysis going on on

this floor and down five on the day, four on the week. so rates are soft. open up the chart up for the whole month of february, we've been closing basically between 264 and 272. to some, may sound boring but the equity markets love it vix at 13 and everyone worried about future earning recession, the markets has momentum look at the s&p overlaid on 10 since the nervousness in october. it's diverged. it lights a flat interest rate market and another area may be the big news isn't having the desired effect that's one week of the pound versus the dollar. all the nervousness with brexit, it held gains on tuesday with respect to the dollar. four sessions over 130 highest close for the pound since the first day of february. tyler, back to you >> thank you, sir. appreciate it very much. that was high tax state of illinois, not high deck. crucial trade talks with president trump and china's

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welcome back to "power lunch. it's time for "trading nation. chip stock intel is overweight for morgan stanley today up 1.5%. 20% upside in the stock. permanent ceo a catalyst for growth intel up 11% this year so should investors dip into the stock i'm joined by craig johnson with mark of strategic wealth partners craig, are you picking up intel? >> kelly, we like this semiconductor stocks for a while now. intel looks attractive to us long-term uptrend still there. moving out of a nice looking base looks like we set ourselves up

to retest the old highs. about two-thirds of the way there, getting back to the old highs and usually when you get to the old highs with the market strong as it is right now, we would be a buyer of the stock here and anticipate the retest of the highs. >> buying alongside them >> no, i'm not intel is cheap and cheap for a reason i used to look at a low cost way to gain exposure to the cloud and looks more like a value trap than a bargain the area of the business i'm interested in is the data center which is their higher margin business and about 33% of their revenues and that's because businesses are all shifting towards these lower cost computers which then, they then need to lean on the servers in the cloud to really operate effectively and increases the demand for server chips. the problem is intel seeing weaker sales in the server chips because all the competitors are eating their lunch if they're not crushing it in the data center group, little

business in the computing area of sales >> craig likes it, mark doesn't. for more "trading nation," follow on twitter a at @tradingnation. president trump meeting with china's trade chief moments from now. head live to the white house plus, powerhouse shaq's $22 million florida estate and disaster du jour shares kraft heinz shattered deep in the red trying to "catch up" with this rally. see what i did there come on. all this when "power lunch" returns. >> looks better in hindsight >> when you own a stock that's going higher, help lock in profits by raising your stop order. the risk to reward ratio may fall out of balance. consider raising your exit point to under a signicafint support level, allowing you to ride the trend as long as possible. ♪

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i'm bill griffeth. here is your cnbc news update at this hour. iran's navy started an annual drill on the straits of hormuz

reimposed sanctions on tehran violating the vital oil sector get this, virgin galactic sent three to space for the first time before the flight, richard branson's spois tourism company said astronaut trainer beth moses on that spacecraft called unity along with two pilots. 600 people signed up for the flight at $250,000 a piece they've got their first passenger there. former nba player and coach don nelson say he's been living a greener lifestyle in retirement speaking at an event on thursday, he said he has been smoking a lot of marijuana since leaving the game >> yeah, i've been smoking some pot. >> it's legal now. >> but i never smoked when i played or coached. it's new to me, but anyway, i'm doing that and i'm having a pretty good time it's more legal now than it's ever been, so i'm enjoying that.

>> i have nothing to add to that >> nothing to add either >> he was a celtic, so they wore green. >> you'd never had guessed it based on the change in his appearance >> that's quite a beard he's working on there. >> a lot of kind of nelson willie nelson. >> those aren't shamrocks in boston trade front and center for this market and the market overseas in china. president trump and china's top trade negotiators meeting at this hour and next week is setting up to be a very big one for the president. eamon javers joins us from the white house. he's got a full plate, doesn't he, eamon? >> reporter: yes, reporters at the white house just called in to the oval office where liu he is meeting with president trump. we believe we'll bring you that tape as soon as they come out. any comments the president might make or comments from the chinese side, giving us any indication at all of where things stand but we are learning

now the president is hoping to have an additional summit with xi jinping at mar-a-lago and seems like this is one of the preliminary steps to get to that point and the expectation among a lot of people in the private sector i've talked to is that march 1st deadline for new tariffs on the chinese will slide so we'll see if we get any fix on any of those pieces of moving data when the reporters come out of the oval office here and get those comments from the president for you, tyler. >> he would today say we're making sufficient progress that i'm not going to impose that march 1 deadline or you think he'll wait >> reporter: i think he'll wait because he gives up leverage i could be proven wrong in two minutes, but i think that's what he'll do he's hinted as much, said it's not a magic date in his view that gives you a strong telegraph of his thinking. >> it's about 2:30 no mueller report yet. you think they'd do it on a friday night or anything like

that or pushing it to next week now? >> late friday is prime time for mueller, so i think we have to be on our toes a source told me this week to be ready today. i think the expectation generally here in washington is that mueller could release something to the department of justice either today or when the president returns from vietnam he'll be in vietnam negotiating with the north koreans all week next week. it would not seem to be easily done to release that report while the president is overseas negotiating with an adversary. a lot of people in town are on pins and needles to see what, if anything, he does today. but even if he sends his report, which is confidential to the attorney general, doesn't mean we would get any answers necessarily today to what that mueller has potentially found or not found. that report goes to the attorney general, bill barr, who will then decide once he reviews it, to release some or all to

congress he wants to release as much as he can under the law, but may be bound by grand jury secrecy and classified information to not put all of it out there in the public purview so we just don't know when and what we're going to see. >> eamon, thank you. eamon javers at the white house. trade optimism pushing chinese stocks higher. the large cap etf up nearly 2% today. both closing their best week since 2016 and outperforming the u.s. over the past month will a trade deal fuel these stocks higher? with us, ron isana, a cnbc contributor. we've seen the outperformance of these chinese markets versus most of the rest of the world. >> they've been down more than the rest of the world as well. >> that's true. >> it was in 2015. >> is now the time to look at them considering the potential trade negotiations resulting in some sort of settlement and then also china stimulus going on. >> a lot of china stimulus you still have structural head winds in the chinese economy

whether excess infrastructure, whether there's maybe the inability of china at this juncture to stimulate the economy in the manner it used to having said that, the market is down 250% and having underperformed that much over the last four years, not only index opportunities but stocks >> why not able to stimulate the economy? it hasn't cut rates which is what they did the last time and six times, i believe, between 2014 and 2015 or so. they still haven't used that tool. >> and vind kaicated to a certa extent because it would weaken the r&b of the currency. not that it matters. >> they need a little weakening at this point. >> they've been holding it in a locked range for quite some time so you have to wonder whether or not that would come with the territory given also the economy appears to be far weaker than official statistics suggest and so they're due for more stimulus

in some manner or another. as might be the case, the u.s. for different reasons, it's probably a stock pickers market in china the index had a good run but even if there are some lingering uncertainties about the future pace of growth there, stocks, if you're a good stock picker in china, there will be something probably fruitful. >> the u.s. market is up a lot so far this year and the chinese market up a lot so far this year it would appear both discounting a positive outcome on the trade deals. >> how to define that? >> whether that is an agreement to punt some things down the road but an agreement on other things but are they out over their skis and what if the result isn't positive >> it depends how you view out over your skis if the president backs away not only from the tariffs but whatever deal they might be working on now where china purchases $1.2 trillion worth of products and defer on forced technology transfer and intellectual property reforms and things like that, that just

takes the pressure off both economies simultaneously a farm economy here getting killed and steel tariffs, potential for auto tariffs, another negative for us and europe but anything that comes off, so the fed is off the table to an extent, trade would be off the table. >> takes it down from a simmer to a boil. >> that's a great way to put it. and how far and how fast we've come, more individual stock picking than trying to ride the averages. >> one thing, people talk about enforceability, there might be snapback tariffs of something if they were in violation of this deal that doesn't sound like something, we can't price that in right now but to have that hanging over the market's head, does that become a problem for the next couple of years >> i think it depends on how the president frames it, if there's indeed a framework agreement listen, we won, we gotwhat we wanted and walks away and have these ongoing conversations and we feel this is, you know, an adequate deal for the time being and doesn't make any threatening noises and then i would say, no, listen, first sign of any kind

of backward walk on this, walkback, i should say, we're going to put the tariffs >> backward walkback >> a little inarticulate for a moment there but anything that would roll back progress made if he were to snap those tariffs back on, which he's done quickly in the past, that would be an overhang but i don't know that kim and his current political situation, he wants to go down this road. >> we are seeing headlines as we mentioned before, president trump and vice premier liu he is meeting at 2:30. we are expecting taped play bk but the president said president xi and i will make the biggest decisions on trade we've seen a bit o of a walkback in terms of the gains today maybe because markets anticipating something bigger in terms of a proclamation of progress from these talks be u of course, we'll bring you the playback as soon as we get them. i want to go back to the, over the skis sort of notion in terms of the valuation and the run of the stocks

what's interesting is that this year, the most crowded trade according to bank of america, merrill lynch and fund manager is em and everybody is confident about china. you have to be to like em. >> or you could be playing the dollar, that would weaken and some pressure off of e. m. currencies and they extension, their opportunities with local currency terms to buy the markets whether it's their debt or equities. it got crowded quickly everyone was looking for e.m. to do wonderfully and now outperformed the u.s if, again, we see improvement in china and in the u.s., it's probably still a good bet and if the dollar continues the weaken, that's also a tactical trade that people have on, just making a bet solely on the dollar declining against those currencies. >> some more headlines coming in president xi is saying he hopes both sides will redouble efforts to meet halfway. in the meantime, we do want to bring in tim seymour, a trader

with some china stock picks. tim, you like this market overall? where are we in the valuation of the overall market >> chinese stocks are very cheap in terms of their historical reference to themselves or the overall asset class. so if you look at some of the megacap chinese stocks, ifyou look at ba baa ba, the spending wasn't great or the buying wasn't great but below 1.0, some of the cheapest big megacap high-tech companies in the world. ron is talking about the macro trade here and i couldn't agree more also, just technically, you have the shanghai back above the 200 day and looks like it's breaking out in some levels i also just think all the negativity and the chinese economy, we talk about this on "fast money" all the time. china can play the long game but has to play the short game as it

relates to their economy and their culture. i think the tax cuts, we've seen the chinese economy bottom in 2019 i think china looks impressive between now and at least the mid part of the year, if we get this deal as we expect. >> ron, it's striking to me in a way. tell me whether i'm crazy or not. >> trump says there's good talks on trade my sense is the negotiations and the president's chance with respect to china is much more cordial, flattering, fawning almost than it was with respect to his stance in nafta, with respect to justin trudeau and the mexican leadership, where he took a much more belligerent posture. maybe it's because he felt he could, he had a stronger hand to

play there and this is a much more foreign economic rival, i don't know am i wrong about that? >> a couple of things. this was very early in his presidency going after nafta the improvements to nafta were something that were already effectively on the table among the three countries to be discussed. we had some people who said, really like a 5% improvement in nafta. wasn't quite as tough as the goerks ma negotiations made it out to be. >> it got belligerent. >> he was talking about taking 25% off of $500 billion worth of goods that come here and now in a vastly different political situation not only because of the impending mueller report, the house changed hands. so he's looking for wins here and i think that to the degree he takes some of the pressure off himself and claims victory in an area like this and say it's going to strengthen the u.s. economy even further, i think there's some political calculus beyond the economic >> thank you, ron.

thanks, we'll get your china picks tonight on "fast." tim seymour. the $22 million estate of one of the biggest names in basketball a shaq edition of powerhouse is next i think that's down near orlando. we see engineers simulating the future to improve today. at emerson, when issues become inspiration, creating a better world isn't just a result, it's a responsibility. emerson. consider it solved.

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welcome back that triple digit gain has evaporated down 6 b8 but still some more headlines from the white house eamon javers >> the reporters in the oval office with liu he and the president of the united states where liu he having read out a letter to president trump from xi jinping, the chinese leader himself. we get some indication from that about how things are going a couple of points here to bring you. the treasury department steven mnuchin in the meeting saying that liu he has agreed to extend the meeting by two days to continue talking and said to reporters in the room, a strong agreement on currency. no specifics yet as to what that agreement on currency might actually be. lighthizer says though, there's still some great hurdles left. a u.s. trade representative,

lighthizer, speaking in the oval office the president says if there's a deal, tariffs will not have to go up. it seems like mnuchin saying they've concluded some agreement on currency and then lighthizer says there's hurdles here. the president dangling out the prospect here the united states side doesn't have to put those tariffs in place on march 1st as had been promised. the president saying there's a very good chance that a deal can be made and in the letter to the president, xi jinping saying he hopes the two sides will redouble efforts to meet each other halfway. some genial rhetoric from both sides and from mnuchin, might be some movement here as well as simultaneous indication there's a long way to go before the final package is set to be agreed upon, guys. >> they're extending the talks and the stay in washington for two more days so potentially we could be greeted on monday morning with some more headlines? >> that's right and that's going to be likely a staff level event. we'll see whether the president

gets involved. the president is leaving for vietnam as is half the white house press corps this weekend so he's beginning those negotiations with kim jong-un of north korea in hanoi next week so this is the president with a lot of negotiating going on simultaneously, both with the north koreans and with the chinese and you wonder how much all of that is woven together in terms of the chinese-north korea relationship because we know xi jinping and kim jong-un had a meeting of their own back in january and this is sort of a three-sided negotiation in many ways in terms of geopolitics and the economy. >> eamon, thank you. >> you bet. >> eamon javers with the latest from the white house a bombshell story developing just this hour new england patriots owner bob kraft named in a prostitution sting. eric chemi with the latest. >> reporter: patriots owner robert kraft charged with two misdemeanor counts for solicitation in florida. he's not actually in florida, so he wasn't arrested these are just charges the nfl just a few minutes ago

putting out a statement saying it's aware of the situation and it is monitoring what will happen going forward the patriots putting out their own statement saying that robert kraft denies he did anything illegal. we'll have to see what happens here and of course, the patriots are the second most valuable nfl franchise. valued at almost $4 billion. he's thought of as maybe the most respected nfl owner, certainly, the most successful over his 25 year track record. they've been to the super bowl ten times, winning six of them in that 25 year period of course, owners have the ability to vote out their fellow owners but never actually done that despite bad behavior from other owners in the past no one has ever been voted out of the nfl by their colleagues so we'll have to see what happens. >> let's give mr. kraft the presumption of innocence, of course, but there have been precedents, have there not, the league and the commissioner sanctioned owners for bad behavior, for example, duis and

other things. >> jim ur isirsa had to be compl away from the indiana colts because of substance abuse issues but not lost with the team but had to stay away for a period of six weeks. >> is there any kind any kind o, eric, for the patriots >> if you look at the age, approaching 80, he is about 77 he got four sons jonathan kraft with him all the time is an executive for the team so you have to assume that given his advanced age they have a plan in place. if he were to pass away in the future say if he is not in control of the team anymore my guess is jonathan kraft takes over from there. >> thank you, eric. $4 million, that's how much today's drop in kraft heinz has cost warren buffett. we'll dig in to heinz next and be sure to tune in on monday when becky quick sits down with the oracle of omaha for three hours and weigh in on hinds, the

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kraft heinz plunging after the company announced a massive

write down, cut the dividends and disclosed an s.e.c. subpoena let's find out what is next for heinz. joining us is jonathan bumgarner. he's got a hold rating on the stock. great to have you with us. key to examining the stock and where it is now and the valuation is whether or not you believe management's forecast and they gave a forecast on the call the cfo said and promised, actually, consistent profit growth by 2020 do you buy that? >> it's a little bit tough to see right now. what you have seen take place is a 10% profit miss for q4 the guide down is 15% below consensus forecast for next year ebitda it's a different stretch and stronger term some of the cash generation from oscar mayer meat lighter than expected and difficult to get a good handle

on fundamentals going forward right now. >> what is the value of their iconic brands? they're iconic and nobody wants to buy them anymore. >> that's a big question i think you wonder if kraft's largest issues versus the rest of the industry is in their categories, they're much heavily exposed to private label with the competitive set. slow growth. limited pricing power and seeing that bear out in the numbers and driving the impairment charge, as well. >> kraft heinz was a terrible performer. is there anything warren buffett could say on monday to bolster the investors hopes? he is invested in the stock for the decline. >> i mean, i think over the short term it is really difficult seeing the stock having come in over two or three years and at the outset, speculation of m&a and the economics don't seem to warrant that anymore given where the stock is trading so you're

basically left to organic growth and we haven't seen a history here where organic growth to make you anywhere, you know, confident to see an acceleration in the numbers going forward. >> all right john, thank you so much for your analysis don't go anywhere. check please is next ♪ you should be mad they gave this guy a promotion. you should be mad at forced camaraderie. and you should be mad at tech that makes things worse. but you're not mad, because you have e*trade, who's tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. don't get mad. get e*trade's simplified technical analysis.

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check please. >> we have a lot of headlines trickling in from this meeting of the chinese and the u.s. delegation coming the china trade negotiations u.s. commerce secretary ross saying there's more to be done to get a deal on trade with china. meantime, china's liu is saying a deal is very likely to happen and watching this as the markets are being -- i don't want to say buffeted. >> we have cut the highs in half basically. we are still up -- i don't know if he's leaving the options open, trump is, in terms of outcomes. >> maybe people hope for more to come out of this - >> ambassador lighthizer saying more needs to be done and the president saying a deal looks more likely than not if a deal happens, this is a foreign policy not to mention a trade policy triumph for the president. >> it would be a major feather in the cap for the administration. >> i'll be watching the kraft

heinz fallout. buffett's letter tomorrow and then hearing from him monday and people upset about what's happening to the iconic brands and point the finger at 3g and berkshire and ask about what happened. >> why have they been in on the stock for three years on the decline? >> for sure. >> thank you for watching. >> "closing bell" right now. ♪ good afternoon happy friday welcome to the "closing bell." i'm wilfred frost. >> i'm morgan brennan in for sara eisen might be a holiday week but it's felt busy and long right? >> four long days because they have been action packed as will the next couple of hours be. >> yes we pick it up there. the federal reserve releasing the monetary policy today. we'll break it down. president trump meeting with the vice premier of china right now. we have got the headli