by lyft. you will see uber become public. needs more valuation assigned to it >> and kkr and schwab, someone will buy them some day >> good stuff. thanks for being here. that does it for halftime. "the exchange" begins right now. thank you, scott here is what is ahead this hour. boeing is sliding again. more countries includingthe uk now grounding the company's 737 max 8 planes and now washington is weighing in we'll get you the very latest. big new d.c. buzz words are break up big tech. we'll talk about the inch pli da implications and if they stand a chance and college entrance cheating plot that involves celebrities and ceos is rocking the education world. the parties involved and what could happen next, that is all ahead in rapid fire. but we begin with dom chu. welcome back >> good to be back

let's talk about what is happening with the markets we are seeing a mixed market overall. boeing the big story line with regards to the dow biggest price weighted part of that index but you can see the dow industrials down by 90 points. more than that is just boeing alone. meanwhile you have the s&p up by 11 points and nasdaq up by 45. about half a percent gain for each of those. take a look at what is happening with one particular sector out there and that is the industrials. this sector spdr xlu up by two-thirds of 1% as you see here, since december 24th like many industries, it has been higher in a straight line by about 13%. but the reason why we care is because this level right here represents a record high for xlu. and then take a look at what is happening our stock of the day, third best performer in the s&p, chipotle, those shares by the way you can see here up by about -- and this point here since about december 24th, up by

just around 65% during that span chipotle shares certainly a standout in today's trade. welcome to the exchange o boeing shares getting crushed, now down over 12%. and another major european country banned the 737 max 8 from even entering its air space. phil lebeau is here with the latest >> and i think most of the countries in europe now have either banned the 737 max 8 flying in the air space or they said look, we just don't want it crossing through our air space wouldn't be surprised if we see it for all of europe eventually. you won't be able to fly it let's say from paris to its t istanbul so we now have 31 airlines more than 50% of the global fleet of 737 max 8s that have been grounded uk, ireland, france, germany,

italy, poland. so as you take a look at shares of boeing, this is the pressure that is on the company right now. and at the same time, and i get a lot of questions from people especially on twitter or elsewhere who are saying what about here in north america. why are southwest and american continuing to fly this plane it is because the faa has said this plane is air worthy and that is something boeing pointed out in a statement earlier today. as these announcements of groundsings were coming in, they sent a note saying we're in touch with the airlines and the faa. and the data shows us that this plane is safe to keep operating. >> and consumer reports as now apparently said that there should be a temporary grounding of this aircraft so for what that is worth, southwest saying it will waive fare distances if you want to change aircraft. and are there two or three airlines that are flying this plane in this country? >> max 8 is flown by american and southwest here in the united

states united airlines flies the 737 max 9. a slightly larger version. >> let's bring in keith mackey, a safety consultant and also former pilot he is on the news line with us let me ask you, a lot of the -- the 737 is a four or five decade old aircraft should boeing have done more to train pilotson the differences with the 737 max 8 >> well, the 737 max 8 of course has some differences, but it is not drastically different from the previous designs it has a little more automaticizati aspects. >> and do you think that there would be a difference between the training and capability of u.s. pilots to fly these

aircraft which the airlines say are aven are -- which the airlines are saying are safe. and the international airlines and pilots flying these planes and the international response we've seen which is to ground the aircraft >> let's look at the history of the airplane a little bit. when it first came out a number of years ago, there was virtually no automaticization in it at all. we had pilots from the air force or civilian jobs or other airlines and they were the ones who manually flew it and could fly it well. and then it became more and more automated and the purpose of this was to allow people with less actual hands on flying experience to be able to operate it safely. and the world now, the economies of the developing world are where the airplanes are going. and you have people in some of these countries that really have no aviation background at all.

and they are being trained with minimal hours. now, the latest accident, the information i have, the co-pilot only had 200 hours of flight experience that would never happen on an american airline he'd have to have at least 1500 hours. so the fact that we're trying to put less experienced people into these airplanes and compensate for their lack of experience by automation is an issue i think >> so do you think the ceo of boeing should be out there explaining this to the american public which is on edge? >> yes, the public certainly is on edge and this is a big deal for boeing because boeing has over 4,000 orders for these things. it is the majority of their book of business. there is 10,000 of them that have been manufactured so far. so this is a tremendous number of aircraft to go. and if airlines start canceling orders because of bad publicity, there is a problem

i think that there is probably nothing wrong with the airplane, that some simple things will be done to be sure that people understand how these systems operate and can operate them properly and that is probably going to be the solution to the situation. but right now, we have to wait for this investigation to be completed. we have to learn officially what caused this latest accident. >> and a lot of -- for emphas e emphasize, it is speculation but the american public is also speculating here so i'll ask you the same question if the ceo of bowieing or transportation secretary believe that there is a difference between maybe the training and capabilities of the pilots flying the aircraft versus the u.s., should we be hearing that story more clearly and more directly >> well, let me ask you this, kelly. and keith i'd love to get your thoughts hypothetically you're saying dennis mullenburg should say if you are flying on southwest or

american, those pilots got a lot of training, they are good if you might be in one of these max 8 x over in asia, maybe they don't have as much training. you'd never do that. you would never do that if you are the ceo of boeing. and i'm not saying it can't be discussed or it may have played a factor in two of the accidents, but he's not going to say that and nor do i think that boeing wants him to say that because that is a quick way to lose customers overseas if you say your pilots aren't trained as well >> you took the words right out of my mouth. i could not have said it better. >> so what are international flyers who include a lot of americans all the time of course supposed to think? because implicit in all of this is that there is some training problem with my lots behind these aircraft are we talking about more disclosure, about a narrow problem, or a broader one? >> i think it is becoming a broader problem as these

airlines develop and the proper training isn't accomplished and they are forced to put people in the cockpit that really don't have a good aviation background. i'm not sure that there is an easy solution to it. you can't easily buy experience. and it is experience in this case that counts >> phil, last word >> and one last thing to play off of what keith is talking about, we do this report i'd say three times a year that boeing as well as airbus others in the airline industry put out a forecast in terms of here is how many pilots we'll need over the next 20 tounding number. and we've done stories about efforts to train and recruit people to become pilots. more people in the world want to fly. so you will have a greater demand forpilots and that is just the way it goes and i understand the questions you're asking, you need to ask them, but we still don't know what called the lion air crash

or ethiopia. >> and we kind of have to speculate here because again there are people boarding these aircraft all the time who want the questions answered to the best of our amount, but tbility but we need to learn more. thank you both boeing is not only the biggest point driver for the dow, but its impact can be felt in 215 listed etfs the spdr dow jones has 11% exposure certainly they are feeling it today. the dow is the only major index lower because of the boeing impa impact s&p and nasdaq have put together their largest two day gain and joining me on set, bob pisani in the meantime tell us what has been happening here with the

s&p, nasdaq, the technology stocks have been strong. >> we have a two day rally the bad news is that we're sort of still in that trading range we tried to get over 2800. only once did we close over 2800 this boeing is an interesting situation. you saw what happened yesterday, big drop right at the open and that was the low traders came in and started buying very aggressively at literally 9:31 eastern time. the belief among those i talked to is this is a software program that could be fixed, not long term harm. now you see it down dramatically because countries are not allowing the plane to come into the country. i think it is important to figure out whether it is a software or hardware problem but there was a floor there. people said wait a minute, the market has mispriced the risk. and at this point we still don't know the answer to that question but overall there is underlying buyers in the markets at certain levels >> interesting sort of piece of

news as well this morning. the cpi report which came in soft overall showing this is the headline it was up just 1.5% year on year, how did that ripple across the market and how does that impact the discussion about what the fed will do next? >> the market has come to believe that inflation will remain low for some time and you see it in the bond market lows for the year. if you look at the new high list, it is littered with utilities. and some real estate investment trusts, some apartment reits and american towers. but really nothing else. so in the last couple months, investors have been looking to alternatives and so they are going to reits and utilities >> great point here what else is coming up today -- >> ahead, elizabeth warren calls for the breakup of big tech companies. what would it all mean and does it have any legs? speaking of tech, former chief security officer at

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senator elizabeth warren taking aim at big tech calling for greater regulation of companies like facebook, google and amazon saying their size and strength are hurting competition and innovation warren tweeting it is time to break up these companies so they don't have so much poweroff everyone he was. and facebook deleted and later restored ads placed by warren's presidential campaign calling for the breakup of the social media network. joining me to talk about the new proposal, antonio and ina. what elements do you think have broad appeal and could be possible >> i don't know that any parts of it are actually possible. certainly not in the near term in terms of broad appeal, there is some political gain in beating up big technology companies. we've known that there is a train out there that is willing to say that all

things big are bad and there is political statistic insi constitue constituency for that. i don't think they are broadly disstaffed wi dissatisfied with their experience >> and warren talks about how the government went after microsoft and that led the way for the growth of today's technology giants. but as we know, google came about on its own microsoft bungled mobile so do we really need some kind of help with the next generation of innovators or will that process happen organically in a way because of the monopolistic behavior of the tech giants today? >> i think history has shown that in general competition in the tech field happens because of big shifts that the giants of the day miss rather than antitrust regulation i think what is interesting in the microsoft example, and i do

think elizabeth warren misses the point on a couple fronts, i would argue that the antitrust scrutiny did slow microsoft's innovation not so much because of the rules that were imposed, but because microsoft as a company became more worried about regulation and lessing a agrees sif and other companies were able to do things it weren't. for example bunk gbungling the browser in the microsoft apple certainly bundles a browser and the google on the chrome book. so i think that antitrust regulation can have its place. but as we write in a piece today, it is often in a different way than regulators actually intend. >> one thing that ben thompson talks about is perhaps the biggest regulatory failure of the past was regulators allowing to acquire instragram. he has qualms about them undoing

it but should there be more action taken to address that issue, is it enough to just say you can't continue to buy other social networks >> it is hard to see why we haven't seen them acting like monopolies if they had acquired instagram, shut it down, took the technology and plugged it into facebook to acquire those customers, that would have been monopolistic instead they took a company that had i think a tenth of the number of participants now on instragram and not a clear idea of how to make money on that platform and then made it highly profitable with lots of activity and a billion participants now so that is not acting like a monopoly and they had other reasons for why they are doing it. i understand why people are recei receiticent reticent, but we are not seeing that consumers are being harmed.

>> and that harm is the core of the antitrust. so just finally, one ofthe issues and we've talked about it before, but the demise of local journalism and the ability of anyone to make a living by gaining ads because of facebook and google is a real problem so ina, if you are a regulator, if you are running for president, say we'll tackle the advertising industry, would you have to force them to sort of spread the money around or how would you really get to that core problem which even just overnight again we've heard from news corp will complaining about. >> you identify a very real problem which is in the analog era, a lot of the ad dollars went to journalism organizations and one could certainly argue that is great for democracy and now you have most of the ad dollars going to google and facebook and that is not so good for journalism but there is not a clear answer to that. and i don't think that antitrust

regulation really helps with that problem at all. >> finally, do you think there could be some sort of fresh innovation that does get to that problem? are we willing to have the trust that that should be the case or do we have to work harder to identify how to fix these issues today? >> i think we are seeing at the margins publishers trying to experiment with new models i'm a big fan of axios, but where i worked before, there are examples of combining events and sponsorships and advertising to form a healthy business model. but i don't think that we've seen something that works bloodily nationally. certainly not for local journalism especially. and i think we're seeing some nonprofits trying to address that >> and i don't think it will sell as well as the slogan for 2020, but it helps us understand where the attention should be. guys, thank you. we'll continue the big tech breakup discussion with former chief security officer at facebook, that is still ahead. but first, college cheaters.

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7.6% slump here. dick's sporting goods beat on earnings and revenue, but gave weaker than expected full year guidance and adt also lower with revenue dropping below forecasts gave a weaker outlook be and talked about intensifying competition and shares down nearly 13% and coffee futures are losing ground and falling to their lowest level since 2008. down about 1% today. but check out with the chart of coffee versus starbucksoff over two year period. coffee falling more than 30% while starbucks is up about the same amount. now time for a news update >> here is what is happening the u.s. department of health and human services announcing national cancer institute director norman sharpless will

take over at the fda and u.s. trade representative robert lighthizer testifying on capitol hill today on issues concerning the world trade organization in comments about u.s. trade talks with china, lighthizer saying if current issues between the two nations are not resolved, there will be no agreement. u.s. and taliban negotiate tors reportedly wrapping up their latest round of peace talks with no agreement in place on when foreign troops will withdraw from the region and schools in lee county, alabama reopening today. more than a week after a massive tornado tore through the county killing 23 people. a certified grief counselor worked with some teachers yesterday in preparation for welcome those students back today. brave little kids. that is the news update this hour kelly, back to you here is what is ahead on the

exchange -- >> coming up, an unprecedented overreach by the s.e.c.? stitching together a good quarter. moody's gives a warning about the auto industry. and free chipotle? it is all ahead on rapid fire.

welcome back more breaking news on boeing straight to phil lebeau. >> take a look at shares now trading at the lows of the day after the european union's counterpart to the faa has now grounded the 737 max airplanes from flying in european air space. some people might look at this and say it was already going to be grounded in the uk, ire lachbd, germany, turkey, poland. this basically blankets it so now what you have is all of europe, china, many nations within asia as well as australia, you've got a number of airlines in latin america who have also decided to ground this plane. so you have well over half of the global fleet of 737 max 8s that cannot be flown

the big exception to all this, north america where the faa has said it still remains air worthy and as a result, you see american, southwest continuing to fly the max 8 and united continues to fly the max 9. >> and boeing just off session lows phil, thanks a few other stories on your radar today. bob pisani and leslie pickard here with us first one up is elon musk, lawyers are firing back at the s.e.c. saying that those february 19 tweets did not violate the earlier settlement agreement. they say regulators are broadly overreaching an infringing on his first amendment rights by seeking to hold him in contempt of court >> i think my favorite line in that filing was when they said that it was just shorthand gloss from prior disclosures, somebody

that already knew. so it was fine >> but the issue is not so much the contents of the tweet. it is this idea of are all of his tweets supposed to be vetted by the board before they are sent out or is it only the tweets which they are -- supposed to be only the ones with material information. and tesla is arguing this was not material >> so the deal was with the s.e.c., he would have to go to tesla if he tweeted out something that had any material information. the problem is lawyers seem to be asserting that he is the guy that terms what is material information or not and there is something wrong with that whole scenario >> is this a bad settlement by the s.e.c., is there a point to be made that it has too many definitions that are -- they haven't been in this kind of situation. we're talking about vetting tweets by a ceo. maybe it was not crafted as well as it should have been >> i think the deal should be that all tweets through his people first that is the way it should have

been crafted >> does that violate the first amendment rights >> that is interesting here because this is all unchartered territory. because normally you don't have ceos as actively engaged on social media especially with regard to their financial projections as he is so when you say that they didn't craft it, i guess one of the theories behind the law is that when you are ambiguous about a settlement or statement, it should benefit the person that is -- >> innocent. >> exactly right so maybe this is just a way for them to set legal precedence so you can make things more tight in the future. >> if the s.e.c. comes out looking bad here, that will reverberate too. they won't want a black eye like that >> and lot of people are talking about elon musk being in defiance of the s.e.c. and the s.e.c. can't look weak in the face of that if anything just to set an example for other companies. stitch fix up more than 25%

today after the clothing subscription company beat earning an issued strong guidance they are now throwing in on 3 million active clients and the stock up more than 130% since the ipo. >> i see happy customers they have the highest keep rate on record. 88% repeat rate. revenue per client up 6.1% not only are they not sending the stuff back, they are ordering more. they had 30,000 new customers. i don't know what they are doing. i'm not a customer but it sounds like they have ha happy customers. >> i've always been very skeptical of these subscription based box models where they send you something once a month or once a quarter, they keep billing your credit card for it. i don't like that kind of thing because i feel like i lose control of my budget and finances but i'm shocked that so many people out there think exactly the opposite of how i do, that they want to have these

subscription services. >> i feel that way about a lot of stories >> i don't get it. >> i also wonder how much of today's stock pop is due to the positive earnings which were no doubt positive and how much is due to a potential short squeeze because this was one of the most shorted stocks on wall street. so any type of up side surprise will send it higher. >> stumbling out of the gate has been so common up 130%, looks pretty good >> it is not blue apron. >> whatever they are doing, they are doing right. let's skip ahead to chipotle which is taking its loyalty program nationwide and teaming up with venmo during launch week to deposit free money directly into venmo accounts. the first 25,000 people to enter their phone thumb tinumber tieda venmo account each day will see as for of up to $500 the stock is up about 50% this

year we might be headed back for the new highs. >> and brian nicol took over a little over a year ago he brings the taco bell view into chipotle. shares have essentially and just roughing it essentially doubled during his time. they have done a lot of interesting things they got over the food safet scares and what is curious how they will engage customers using this kind of thing. i haven't had food delivered through the apps yet, but i have used them and i'm using them more 10 points for every dollar spent, $12.50 for an entree, i could see myself maybe getting involved >> and chipotle has been giving away free burritos for a long time >> i have not ever gotten a free burrito. >> dress up on halloween a good way to give away free

food and keep the customers coming back. >> obviously they are looking to build the relationship with their clients digitally, but the venmo relationship is interesting too. venmo is getting something out of it. they are getting more engagement it is all about getting more engagement online both for venmo and chipotle i don't see any real down side to this. >> not at all. >> let's talk about what might be the other biggest story of the day. the more than 40 people including hollywood actresses and college coaches who have been charged in a $25 million college entrance exam cheating scheme prosecutors say the parents who paid bribes also got a tax write-off because it was done through a consultant's charity this story is crazy. but yet somehow not surprising >> all i know is for all the stuff that i've engaged in on social media today, the stuff that has gotten the most response back has been all of the stuff with regard to this college admission scandal.

>> the volunteering, the standardized tests all to get in a smaller number of slots because other ones are siphoned off for people who just cheat and lie to do so >> allegedly hundreds of thousands up to $6.5 million of payouts to try to get these kids into schools the numbers are staggering just from a straight college tuition standpoint let alone what you are willing to do as a parent to get you into one of those. >> should all colleges just say 20 respect about of our slots are for people who pay 5 x >> i'm sorry, my hair is not on fire about this. go online and try to be anything try to be a hairdresser, try to go into the stock business there are courses and people who will teach you the exam you have to take, we'll show you the questions. we'll explain what you need to do to do that. who knows if they have access to those questions. but a lot of stuffy s i see is y close. >> they knew they were directly paying this guy to place their

kids in athletic programs as a way of circumventing the traditional admissions process >> here is a bigger question how widespread it has ever been, is cheating of this type more widespread now than say 30 years ago or 50 years ago. i'm not sure >> and is that actually feeding all of this lying and cheating and all these payoffs, maybe we should all be in the lottery just are do whatever -- >> you talk about the rising cost of college tuitions, this just puts a fine point on just how desperate people are to get their kids in to schools >> but it is also terrible parenting. what are you teaching these kids you're paying someone to take the entrance exams in their place? way to set up the kid for success. >> however junior, it is a writeoff >> pretty much it won't be after this news psycycle.

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save like a hero with synchrony bank, and catch marvel studio's captain marvel now playing. sales of packaged foods may be declining, but pet products are soaring. jm schmucker recently reported better than expected earnings. and general mills bought blue buffalo pet products and owner of dr. pepper bought a majority stake in a pet hospitals chain here to discuss it is steve cohmpanhen who helped launch anf and dom chu is here as well. and we're not surprised by this. >> no, we've been talking about it for so long, the idea that so many consumer product companies

have hudivisions in pet care. but this idea that you could have a fund targeting investments towards benefiting from pets. >> and how is the fund doing, how much money do you have and how has the performance been >> well, thanks first for having me on the show we launched late last year so really it's been a if a hphel reaction so far. we have $25 million in assets performing as has been expected. and the reaction from investors has been terrific because it is one of the subjects that is right in your face every day investors like to invest in things they know and these days cocktail party talk is more about the sgeexpen of acl surgery that you just are sent your pet through than anything >> and $25 million aum, how much

do you need to survive and is this just going to be the next indicator that actually this is the peak of the pet foods craze? because come on, you must know the joke as much as anyone, now there's an etf for that. >> and the good news is that in two months and after a stock market selloff for us to be where we are, we are really pleased. and again, so much of this is about getting the word out and the reactions as i said that we've been getting, people appreciate the underlying premise here 68% of households now have pets. that is twice the number that has children in it and it is not just the growth in ownership of pets because it is the spending and the humanization of pets that is behind this trend. >> and there are some of the top holdings, including a couple science companies, deca pharmaceuticals, but also fresh pet, pets at home group, colgate and nestle it is a mixed bag.

>> so i guess the issue here is we have a $25 million fund we have a company that is running these products, one of the big concerns that you have in this situation is if you are not investing all of that money into companies like a colgate or others out there at a multibillion-dollar level, what you will run into at some point is asset glut. you can't put enough money into work without moving the companies around to do that. that is not to say that this etf is there, but that would be one of those things because many of these companies are small enough to where they wouldn't be as much of an attractive investment >> steve, i've heard once you can't launch an etf unless people want to short it. is that true >> we look forward to having a lot of assets in this fund and there are some small cap companies, micro catch companies. but you've got to get to very, very, very large numbers to have any kind of issue there. so again, the underlying

prechlis behiprech premise we think is found. we think it will attract lots of investors. we've already had a good number talk to us and we're really sxated abosxat excited about the stunt. >> thanks so much. the presidential election about 600 days away and social media companies are working around the clo being to combat misinformation we'll talk to facebook and he former chief security officer about that and the propolso eaupig tech next utcher) we both know you're not just looking for pork chops. you're searching for something more... ...red-blooded. right this way. you thirst for adrenaline, you hunger for raw power. well, you've come to the right place. the road is yours, dig in.

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think fake news is a problem here in india, it has sparked riots and lynch mobs ahead of their national election, social media companies are unveiling new policies to reduce the threat of misinformation there seema mody has that story. >> and unlike in the u.s. where the debate around fake news is confined to facebook and twitter news feeds, in india the focus is on whatsapp and growing evidence of messaging plats forms being used to spread misinformation, which according to government officials in some instances has led to riots and mob lynching across the country. to reduce the threat of fake news, twitter rolled out a new campaigning policy across india in an effort to boost transparency

facebook and whatsapp have unveiled similar initiatives and working with third party organizations to improve fact checking but experts question whether this is enough while india is currently the digital literacy is still on the rise as is awareness around how to distinguish between what's true versus what's false given how close this india election will be. our >> seema mody. what can platforms like facebook and twitter do to combat election interference and the viral spread of fake news? let's ask former facebook insider alex stamos, the company's chief security officer from 2015 to 2018. also a cyber security analyst for nbc news alex, thanks for joining me. >> thank you >> in india specifically, is this a preview of what we could

be talking about here? huge reliance on messaging apps, private communications, in a way, there's no way to police or is there >> there's two complications in india that did not apply to what the social media companies have done to protect the united states election in the 2018 midterms the first is that what's app is encrypted. made the decision to put the content of people's discussions outside of the reach of facebook and governments. which makes it very difficult to know what people are talking about, what they're passing along. and the second complication is the people who are posting this information are legitimately indian citizens. when it came to the 2016 election, talking about russian trolls, there was a pretty god case for the social media companies to take down that content and to take down those accounts but in this case, figuring out a policy base to decide what you're allowed to say if you're legitimately an indian citizen about your own election is a complicated thing. >> i wonder, alex, because

facebook made a big announcement about betting people will do more integrated systems and less public posting in the future it's hard enough for facebook to self-police the public posting what happens when all the messaging goes private >> so you're right mark zuckerberg's post of last week indicates he wants all the facebook products to be more private with less information about users but harder to moderate >> right. >> two balancing factors here. by getting rid of the public posts, you end up reducing the amplification of misinformation. in 2016, one russian actor was able to post something that millions of people saw and that's going to be much harder in these cases where people are forwarding to their friends and family the flip side is it will mean this activity we see in india might happen on other parts of the facebook platform. >> i know what you're saying once it's private, you have to spread it manually, but the case of india, the experiences there, you can spread it manually very quickly and reach a large number of people. so it does seem like that would still be a major threat.

>> it is, and india, there's a specific issue here which is the political parties have mobilized hundreds of thousands of their users to take these messages and amplify them it's difficult for the company to deal with that kind of flood of misinformation from many people who aren't lying about who they are and authentically talking to friends and family makes misinformation more powerful no easy answer here. you give these people privacy or you violate the policy to police their speech. >> people say, we break up the tech giants. instagram, facebook stands alone. would this do anything to solve the problems we're skudiscussing >> i think you're referring to some of the things senator warren's been talking about. i believe there needs to be better competition in silicone valley but doesn't solve the problem. one company or three or five small ones, they have to decide on this balance between privacy and safety and, you know, you can have more choices for people

to choose from, but in the end, you're still going to have these issues. >> alex, great stuff thank you for joining me >> thank you very much alex stamos formerly of facebook the broader s&p so far this year oil prices creeping higher and brian sullivan at the annual energy summit where global leaders and ceos meet to address the mo pssstreing issues going to join us with those highlights next. screening at h. hi. this is the man that's going to check your eyes grandma. cognizant ai solutions are helping healthcare companies advance diagnostics and prevent blindness in patients with diabetes. everything looks good. you have beautiful eyes. ♪

the price of oil up nearly 25% this year as exporters like saudi arabia further cut supplies all this as ongoing crisis in venezuela hampers the exports from that country. brent sullivan joining us with the highlights what are they looking at >> reporter: it's not necessarily what they're looking at but for all the taeng tattention last 50 years on the permian base. the richest oil region in the world but the attention this year is on what's next. finding the next permian basin shale is a kind of technology. fracking can be exported the ceos like chevron, they're

looking at argentina talk about even fracking in saudi arabia and possibly china. so finding the next permian bay sinn is t -- basin topic number one. number two, ceos realize they can't ignore the issue anymore a new generation of millennials coming up and voting soon. this is a big deal for them and others, of course. this is not a topic, oil and gas executives can simply ignore nobody believes the green new deal can be accomplished there's got to be some middle ground to reducing carbon emissions but at the same time, making sure that energy and power also do continue on. >> brian, all this as the crisis in venezuela is unfolding and you've been asking people about it we've talked about the u.s. response, but how does the oil

market factor into it. >> first of all, humanitarian crisis there's looting, lack of food, hospitals, blackouts but oil is venezuela's game. earlier today, we talked to the opec secretary general basically said, listen, we're monitoring the situation. venezuela is an opec and the president of opec this year. a rolling title. trying to figure out how many barrels of oil still coming out of venezuela no electricity, no ability to necessarily get oil out of the ground, kelly. it's a huge humanitarian issue but oil and gas, a big part of it remember, venezuela, not saudi arabia, has the largest number of proven oil reserves in the world. more than $300 billion but got no people, got no power, they've got no money it's a very difficult situation in venezuela. >> awful, such a waste we hope they can turn the situation around quickly great stuff. thanks so much brian sullivan covering this for us all week.

that does it for "power luncthe" now time for "power lunch. >> we'll see you in just a moment tyler mathisen here with melissa lee. new at 2:00 today, boeing battered again europe now grounding the 737 max 8 jets why are u.s. carriers? the faa elected to do the same and president trump weighed in as well. elizabeth warren fueling calls to break up big tech and college entrance exambribery plot. this has been uncovered by the feds ensnares hollywood stars, ceos, coaches and billionaires all busted the details on "power lunch" starts right now >> and welcome to "power lunch." i'm melissa lee.