i know you had unusual in cannabis tilray after the bell today? >> we do i think they're supposed to lose 23 cents or something like that. i think they're higher than that. >> okay. >> always. >> somebody was going to use that line. we knew it thank you so much for watching that's it for us "the exchange" with kelly begins now. thank you, scott hi, everybody, and here's what's ahead this hour. will president trump's tax cuts lead to fed rate cuts? we have more on one side effects of the tax bill that may force the fed's hand. and a day of reckoning that's what attorneys general are threatening google with if they don't clean up their act. we'll speak with one of the attorneys general about his plans. and facebook's downgrade, the college scandal and the irs and the safety of driverless cars, all ahead in "rapid fire". but we begin with today's markets and.com chu. they're modest, but the gains are there, kelly we are green across the board. it may not seem like much, but just about flat for the dow, s&p

leading the advance up about 0.2% and the nasdaq just about flat as well backup remember, key, we're still over that 2,815 market in the s&p 500. the bulls will cling in some way to that. looking at sectors in focus, right now financials and energy neck and neck for the best performing sector of the day by a pretty wide margin as you can see here on a year-to-date basis, energy one of the better performers in the s&p, outperforming the overall market as well so an energy trade, we'll keep an eye on that with crude prices certainly in focus our stock of the day, not an s&p 500 one, but synaptics, losing about a fifth of its market value. this is a company that makes basically touch screens for your smartphones, also fingerprint scanners for laptops, that sort of thing off a huge amount and down by about 38% from its recent highs, this after it guided sales in the current quarter to the low end of its previous range. its ceo also stepping down, a big move after the bell on friday carrying over, kelly, into today's trading back to you. >> and if it's a bellwether, that's certainly not a good sign

dom, thanks. welcome to "the exchange." i'm kelly evans and stocks are losing some momentum from this morning. the dow dragged down mainly by boeing again, but the s&p is on pace to close at its highest level since october. that index breaking through some key resistance levels. bob pisani's at the new york stock exchange with a look at that for us. hey, bob. >> hello, kelly. let's call this one a day of consolidation. well deserved after a significant breakout for the s&p 500. last week it broke to its highest level since october. it's now less than 4% from an historic high. also i think importantly, the vix is sitting near its lowest levels since october and bond yields are near the lows for the year. of course, reits and, cough uof reits and utilities breaking out last week. can it keep going? central banks have their banks, that's the most important thing. and there are declining fears of deflation and many think recession is not likely in 2020.

fed's in stimulus mode and europe is even on six-month highs and outperforming the u.s. but the long-awaited economic slowdown in europe may at least be reaching a bottom that's a big hope. kelly, i'll tell you what i'm very happy about, we are up today. normally, the week after quadruple witching is traditionally a down week, just even being up six points today i think is a bit of a victory for the bulls. kelly? >> and we have the fed meeting coming, bob, and we've talked about interest rates and the fact that the ten-year yield is barely above the one-year yield at this point, which is kind of wacky. are people in the stock market talking about rate cuts at all >> they're spitting all of that low interest rate story in a bullish way. they're saying the fed is not worried about inflation at all they're going to reflect that. they're certainly comfortable with where they are. they'll be even comfortable if it goes little bit above 2%. so nobody's worried about the fed suddenly kicking into interest rate hiking mode, and that's the key thing that's driving the markets right now.

>> bob, thank you so much. bob pisani at the nyse the fed kicks off its two-day meeting tomorrow on rates and economists expect them to hold steady, bourret next guest says they may be forced to cut rates because of unintended consequences from the tax cuts joe lavorgna along with steve liesman, welcome to you both joe, it's interesting here you're saying when you cap the state and local tax deduction, it's hurting the high-priced, high-end real estate market. that's hurting housing overall >> yes i mean, if you take connecticut, or actually, california, new york, illinois, new jersey, and i'm missing one. not connecticut. >> massachusetts. >> massachusetts, thank you. >> that's what i'm here for, joe. >> those six, you're talking over a third of u.s. gdp, well, a third of -- >> growth. >> and the housing market probably even more so you get rid of the s.a.l.t. deduction, you're effectively lowering the after-tax return to housing, which means you need lower rates to offset that and make it more affordable. >> steve, we've seen some

softening up we've talked to diana about this, too, in those markets. it's interesting that a lot of times when you're talking about rate cuts, it's because the economy's slowing. this is a little bit different story. even last year, residential investment dropped while gdp expanded so housing is at odds with everything else. >> housing has been, i guess, the black swan, if i could use that >> yeah. >> but more literalirly than literally. look, it's a shocky adjustment and i think they did this in a terrible, terrible way if you say that all of the arguments are correct for getting rid of this deduction, the shock to the system of a one-year change to the tax structure for houses that have been in place and a tax break that's been in place for 100 years makes no sense if you really think we need to move from regime "a" to regime "b," this is something you would want to phase in over time and so, i'll give you an example. >> but i just wonder, though, before you give the example, if the reason why this is done is part of this whole narrative on

both sides that this hurts the wealthy, therefore -- >> it helps the wealthy. >> no, it hurts by capping -- >> right, right. >> in other words, if they were the middle class, certainly people might say, whoa, whoa, whoa, why are you even doing this, you've got to tread slowly, but because it's an unpopular class, frankly, there's not a lot of appetite. even the democratic governor's stuck having to defend higher income people. >> all of that can be true, right? but there is an effect of a shock to the system of moving from regime "a" to regime "b." and if they're right that it should be done, should have been done over time -- an example, i'm raising money for a large charity i'm putting together one of my donors from last year said, steve, i'll get back to you after i meet with my accountant to know what kind of whack the tax cuts this year or the tax reform this year did to my income. now, that's all well and good. maybe this guy deserves to pay more in taxes, but the regime change "a" to "b," one year to another -- and i think that goes on top of what we're hearing of

4% to 6% decline in property value some places. >> even more, yeah. >> that are affected by this. >> look at what's happened to the ten-year, joe. >> sure. >> this reset you're talking about. your argument is the housing market because of this hit needs lower rates than otherwise the ten-year yield has gone from 3.25% in november to 2.59% today. >> that's right. it's certainly the tax policy. it's also the fed having hiked rates. last year mortgage rates got up to nearly an eight-year high, so it's a combination of factors. but as steve was alluding to when he mentioned the black swan, housing and autos do oftentimes lead the broader economy. and when you have those two sectors behaving very poorly -- we had builder sentiment today still pretty weak. that's generally a sign that the momentum in the economy is lower. and without inflation pressure, the fed's next move is going to be an ease in my view. >> but the labor market is so tight -- >> but it's lagging. but it's lagging. >> sure, but even the jobless claims i know have crept up a teensy bit, but they're still very low there's no evidence that -- i mean, the wage number is fantastic. real wage growth is great.

>> but we looked that way in the summer of '07, too, kelly. relatively low claims, wages looked healthy and the economy was on the cusp of a big rollov rollover not saying that's happening this time. >> but where's the excess? in '07, we had been talking about home prices going up in an unsustainable way and seems at some point it has to crack, and it finally did what is -- >> corporate borrowing from both a gross and net perspective, the corporate debt to profits -- >> but the fed hiking rates. if they're not hiking rates, what's the catalyst? >> it could be companies being overaggressive on guidance and capital markets seegz up on some other event as maybe the market architecture isn't solid because of liquidity issues, something like laeh december and confidence drying up and companies not able to roll debt. it doesn't have to be a big downturn, but certainly there is fragility on the corporate side. >> it's worth talking about how radical joe's idea is from a fed perspective, which is that the federal reserve generally treated the tax cut as a stimulus, okay the idea -- and that was a big part of the reason why they felt

like they could hike rates you've got the 3% growth, and in that context, hard to argue a 2% funds rate or a sub-2% funds rate was right what joe's saying is, no, they should have treated this as really restrictive on the economy. i'm not sure that's true broadly. i think that's true on a regional basis whether or not it grosses up, it certainly is some form of a drag, bhutto also have the tax cuts, which should be somewhat of a stimulus. >> but look at all of the other central banks. ecb can't get any sort of normalization. >> but then you'd fold in the trade and the tariffs -- >> sure. >> which our surveys show is really what's thought to be responsible for the global slowdown that's a separate thing. whether or not fed ought to be looking at what fiscal policy is and gauging monetary policy for that fiscal policy is a separate question. >> we have to go let me finally ask you, because the meeting's coming up in a couple days, what is the market expectation? are we talking about cuts on the horizon? >> there is a solid one-third of our survey participants, which i

was going to tell you about tomorrow, but i'll tell you about it now. >> sneak it in. >> that is looking for a cut in 2020 those are the joe lavorgnas of the world. joe is a participant in our survey. >> and he's not alone. thank you very much for coming and laying out the case here today. now on to new developments on boeing. shares are down again today by around 2% as the focus is shifting to the relationship between the airplane maker and the faa. phil lebeau is live in chicago with the latest. what do we know this afternoon >> reporter: well, we know that there are reports that the d.o.t.'s inspector general office is looking at the faa and boeing and exactly how the process worked in terms of the certification of the 737 max at the same time, we know that a federal grand jury is investigating at least one aspect or some aspect of the development of the 737 max, and we know that at least one subpoena from a federal grand jury has been issued exactly what they're looking at remains unclear. we should also point out that boeing has said it's not

commenting on whether or not there is an investigation, whether it's been served a subpoena, or even if there is, in their opinion, the existence of an investigation. so, it's this uncertainty, kelly, that is weighing on shares of boeing, which as you mentioned, down more than 2% today. remember, the company has a software fix for the flight control systems on the 737 max that's expected to be rolled out likely next week, depending on how it goes in terms of meeting the approval of the faa. but kelly, that doesn't mean that these planes are going back up in the air. they still need to be fully certified by the faa, and you can bet since there are people in washington who are now questioning how the faa and boeing have worked on the first certification of the 737 max, i bet you the faa is going to be extra stringent to make sure that -- everybody's very clear that they have certified this plane before the grounding is lifted and that's not expected to happen any time soon. >> but the faa doesn't look good

on the international stage, and china's regulator does this has been a complete reversal of what we're accustomed to and i wonder what else they're going to try to do to save face. >> well, i think the main thing they're trying to do is to show that they are not in bed with boeing, so to speak, that they are independent and that they will be tough on boeing, and therefore, that's the expectation when you talk with people in the aviation community, when you talk with analysts the expectation is that the 737 max is not going to be back flying real quick, that this is likely to be drawn out a little bit longer, whether it's a couple of months, whether it's three, four, five months that remains to be seen. but you can bet that the faa wants to make it clear that they are not only following the letter of the law, but they are being tough on boeing. >> for sure. all right, phil. thanks so much phil lebeau following this story for us. here's what else is coming up today on "the exchange. >> announcer: ahead, state

attorneys general warn, tech giants are about to face a reckoning. we'll talk to one of them next. plus, lyft hits the road, the ipo road show, that is the valuation, the prospects, and what it means for uber and are self-driving cars a menace to society? from the start, the c-class was ahead of its time. >> announcer: this is "the exchange" on cnbc. faster. smarter. because to be the best, is to never ever stop making it better. the new 2019 c-class family. visit your local mercedes-benz dealer for exceptional lease & financing offers during the mercedes-benz spring event. going on now.

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welcome back pressure is continuing to mount on the tech giants the president blasting google on twitter for, quote, helping china and their military but not the u.s. meanwhile, state attorneys general are warning these tech giants could face a quote/unquote reckoning. tony rahm of "the washington post" is here along with our own jon fortt. tony, you had a write-up on this before the weekend, where i'm curious if we're forming an analogous period today with google as we saw with state ags and the justice department in the 1990s when it came to microsoft. what are you hearing in terms of the plans? >> yeah, certainly there's a lot more interest among the state attorneys general across the country, not just with google, but with all big tech platforms, including facebook and there are really two buckets of concerns. the first is that these companies have collected a lot of information about people and haven't always done the best job at protecting that data. and the second is that these companies have grown very large, and so, there's an outstanding

issue as to whether this is an antitrust concern for competitors around the country but you know, with google in particular, it's not just a policy consideration, it's a political one. and you alluded to the comments from the president just a few days ago blasting google for working with the chinese military that was a subtle reference to something that happened at a congressional hearing last week where the secretary of defense and the chairman of the joint chiefs answered a question from a republican lawmaker to that effect, saying that google had bailed on working with the department of defense contract but still had search operations in china but the pressure is immense on these companies, and it's likely to continue going forward. >> and jon, that's why going back here and looking at the history of the microsoft case in the '90s is so interesting because it did take years for a number of different regulators and state attorneys general to bring different kinds of things against microsoft until may 18th, 1998 the u.s. justice department and 20 state attorneys general filed the big antitrust suit against the company.

is google looking at the same kind of fate >> is google looking at it is facebook looking at it? is apple looking at it is amazon looking at it? here's what's weird here to me yes, there are legitimate, legal, societal challenges around the tech giants, and particularly the data that they've amassed, how they treat it, how they compete when it comes to the ad market but what's weird is on the one hand, you have these ags saying, hey, these companies have gotten so big, and then they're saying, and they're abusing data those two things as far as i'm concerned have little to nothing to do with each other. if you make facebook smaller, it's still big enough to mishandle data so what problem have you solved exactly? on the other hand, we've got ambiguous legal territory around really how does data get treated in this age? and i think it's going to take legislative action to solve that. >> you're right, some kind of framework for what's okay and what's not tony, consumers in a lot of small examples are happy to trade things off in exchange for

offering their data to somebody, say yeah, if i'm compensated for it or get free services as a result, there's not necessarily a lot of pushback. i also wonder, in the '90s, maybe microsoft was the obvious example, but jon makes a good point, tony, there's four major tech giants today. is it going to be one of them that ends up being the target of a big, multistate suit, you think, or all of them? >> well, remember, it's some consumers understand that trade-off that you mentioned, that their data is essentially paying for the service that they're using. a lot of consumers actually don't understand that trade-off, and that's where i think a lot of these headline-grabbing privacy controversies start, is when people wake up to what facebook and google are doing with their information, and in some cases, especially with facebook, that they haven't done what they've said they've done that's the heart of the cambridge analytica investigation that's playing out across the country and that's one area where i think you should keep an eye on the state ags. this is a group, democrat and republican, that has been looking into facebook's entanglement with cambridge

analytica. it's a parallel investigation as the federal government is doing the same so i think that's one early area where you could see some action. you could see potentially a record-setting fine from the federal government, according to my sources and then broader than that, i know the state ags have been talking for a long time about exactly how to wrap their hands around some of these companies because they do cross state lines. and so, you saw some of that when many of the state ags met with the department of justice last year. those conversations have continued in the months that followed >> all right, tony thanks very much tony romm is covering this jon, if you stick around, we're going to bring in one of the ags. mississippi attorney general jeji hood, he sued google and now is working on antitrust issues across big tech. jim, thanks for joining me. >> well, thank you i'm glad to be with you. >> so, you might have heard a snippet of this discussion, but are you and other ags looking to build a case on a company like google, that resembles what we saw with microsoft back in the

'90s >> yes we're preparing to do that now, what we've tried to do for several years is to work with several of these companies to try to get them to do the right thing, you know, maybe adopt some best practices, and that's my hope. i mean, litigation takes forever, and you know, we would hope they would come forward with some proposals, but we haven't gotten there yet, so we're going to prepare for the worst-case scenario. and you know, there's legislation, there's litigation, and then there's some kind of settlement, which is the easiest and quickest way to get it done. >> so, in the case of google, for example, are you looking at an antitrust case to build here or other aspects of their business practices >> antitrust, you know, the privacy angle. we attorneys general who have authority over the protection acts to do both, so it will be a multifaceted suit, or hopefully,

a settlement, if we can reach some agreement with it i mean, we have to look at tech companies like we would any other business, you know they have a duty to protect their customers. they were strong enough and powerful enough when section 230 of the communication decency act was put into place to give them immunity, and they've abused that and so, that's caused the problem where they don't think they have any duty to protect consumers' information so you know, at some point, if we don't have successful legislation, at some point, some court is going to rule to the effect that a person's private information is equivalent to their intellectual property and that companies have to pay people for it. >> sir, there's a lot of issues there. my question is what does size have to do with the protection of consumers' data i mean, all of this latest round seems to have come up because of

cambridge analytica, which is a tiny, little operation that had a whole bunch of data from facebook a small operation could abuse consumer data, so why big tech companies? why not pursue something more specific around the use of data and even smaller companies being involved >> well, you know, the big companies control the data, and that's again the problem with the antitrust side they're the ones that control the pipeline and so, you know, they have the duty to protect that information, as well as the other smaller companies. you know, i want to see us do things like, if you download an app, for example, you know, you have to opt in to allow them to mine your data i'm in litigation with google, for example, for mining the data of our children when they sold our schools the so-called free package of e-mail addresses and so forth, and then they caught them and they mined the data of those children, which is the most valuable asset today, the equivalent of gold, particularly

profiling a young person they can advertise to for the rest of their lives. and that's the economic issue that we're trying to address >> last question, mr. attorney general, and it's about the tobacco precedent as well, multistate agreement, obviously netted billions and billions of dollars. is that something that could also be a roadmap for what you're pursuing here and would this money ultimately wind up in the hands of users or in state coffers >> i think it needs to go back to the people that they've wrongfully taken their personal information. and you know, the states are having to bring it of course, there will be penalties involved as well i don't know how this comes out, but at some point in the future, there will be a reckoning. it will either be in congress or in a court of law, and the companies that are in leadership position should step forward and let's try to develop some best practices, sort of like the regulatory scheme developed by the eu. >> all right attorney general jim hood, thank you so much for joining me today. >> thank you >> jon fort as well. and john, to me, it suggests

this is a much larger effort than i at least was previously aware of and that it could take, again, with the microsoft case, many, many years to come to fruition and play out. >> i'm not a lawyer, but if you got a half dozen companies and you're pushing antitrust on all of them and they're competing with each other for data, i wonder how that's going to play out. >> that's going to be complicated, to say the least. jon, thanks very much. coming up, lyft getting one step closer to its ipo the rideshare company pitching itself to investors in new york today. will it get the 234erks billion it's looking to raise? plus, if you're running a canine blood bank, it's rough out there. how vets are combating shortages for four-legged patients we're back in two.

welcome back to "the exchange." here are some of the movers this hour shares of edwards life science ease are jumping after positive results in studies following its noninvasive heart valve replacement systems. shares up 6.5% today kraft heinz is hitting an all-time low it's a relatively new company, five years old or so but the s&p is putting the struggling food giant on watch negative, after its annual report with the s.e.c. shares are down nearly 2%. and the airline index xal is down more than 20% since highs in march of last year. american is down 45% since its peak southwest is nearing bear market territory. now to sue herera for a cnbc

news update. >> hello, kelly. hello, everyone. here's what's happening this hour the lawyer for the suspected gunman in the new zealand mosque attacks says he understands what he is facing richard peters was assigned to handle suspect brenton tarrant's case. >> in dealing with this fella, i had to put that aside and just deal with what's before me he was lucid and seemed to appreciate what he was facing and why he was here. the supreme court taking on the sentencing of a man who was a teenager when he helped terrorize the washington, d.c., area, killing ten. lee boyd malvo was 17 when he and john allen muhammad went on their shooting spree muhammad was convicted and executed malvo was sentenced to life without parole an appeals court ruling for resentencing in virginia, the state is appealing that decision to the high court. and burger king is launching

a coffee subscription service. coffee lovers can pay $5 a month for one small cup of regular java per day that normally costs $1 so the monthly subscription is values at about 30 bucks and i bet they hope that you buy more when you're there that's the news update this hour, kelly. back to you. >> that's a great deal, but it better not be like movie pass, where then they raise prices as soon as no one signs up, like bill sue, thanks. i'm here with bill griffeth. 30 minutes until "power lunch" and i'll be seeing you for that today. >> i'm going to join you today we had no seema mody to find out what she's having for lunch today. >> i know. >> so we have to soldier on. >> but what is on the menu >> well, as you know, president trump was very busy with twitter over the weekend 50 different tweets over the weekend. two caught our attention, criticism of gm for closing the lordstown plant, and they got an interesting response from gm and the uaw, which we'll get to. and then accusing google of aiding the chinese military at the expense of the united states, which google has come out and denied, but we'll get to

both those stories and i do hope we have time for "check, please," today, because dna has struck again. >> oh, no. >> and they have solved -- >> oh, to help solve a case? >> another cold case. >> oh, that's great! >> with the help of a genealogy website, something very near and dear to my heart. >> i've got something on fortnight, so i'm also hoping we'll have time. >> that alone is worth sticking around for on "power lunch" coming up at the top of the hour. >> we'll see you then. >> thanks. >> now to dom chu with a news alert. what's going on? all right, what we have right now is warner media, all part of at&t at this stage, announcing that its chairman and ceo of warner brothers entertainment, kevin tsujihara, will step down from that role. this is all for some context here, with regard to allegations that he had perhaps inappropriate relationships or ties to an actress that may have led to some favoritism at some point. it's worth noting that these reports came out earlier in the week and that he is cooperating

with the company, with warner media, and a third-party law firm to complete the investigation. the company does say that they continue to work with this law firm to complete that investigation with mr. tsujih a mr. tsujihara's cooperation, but it's obvious that it had become a bit of a distraction they do say in the note, warner media ceo john stankey, that it is in the best interests of warner media and warner brothers for him to step down at anoint, guys back to you, kelly. >> okay, dom, thanks dom chu. here's what else is ahead on "the exchange. >> announcer: coming up, negative network effects for facebook scandals, charities, and the irs. and an out of this world valuation. and doggy blood banks. it's all ahead in "rapid fire. you should be mad at airports. excuse me, where is gate 87? you should be mad at non-seasoned travelers. and they took my toothpaste away. and you should be mad at people who take unnecessary risks. how dare you, he's my emotional support snake. but you're not mad,

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welcome back let's catch you up on a couple stories that should be on your radar today. it's time for "rapid fire. here with their takes are dom chu, kate rogers and robert frank. welcome, everyone. a lot to get through today first topic is a downgrade for facebook at needham moving the stock from buy to hold and putting a $170 price target on it now, the interesting thing is she's saying, lauren needham, the social giant's move toward

privacy, the increased risk of regulation which we spoke about and executive departures recently will lead to a negative market effect, the opposite from what facebook's benefited from so far. >> as we talk about the idea that facebook is facing this huge hurdle, the other part of this is this idea that they're pivoting some of the strategy to be more focused on privacy they may be playing catch-up at this point because they have not exactly been the poster children for sharing or not sharing people's data. we've talked about this in the past but for a stock that's already run up by 30-some percent, you're talking about an idea in this downgrade where maybe it just got a little bit ahead of itself and that's the reason why people are a little bit concerned. >> her price target still 10 bucks above where it is now, shares down 3.5%. >> chris cox wrote this letter and basically said the company's turning a new page and they'll need leaders to see that vision through, which seems to me in his sentiment wasn't there and you have to wonder how many other executives are feeling the same way about the pivot that facebook is really making with

its business model into encrypted messaging and privacy. >> and ironically, whats yap is one who left that's the model. >> the whatsapp guy left, chris cox, as kate mentioned, chris daniels. the interesting thing about the chris cox note is he said we need executives who will be excited about implaengt this plan the other negative network effect which i hadn't thought about until this note is employees. you want to attract the best and brightest, right a, is it cool to go to work for facebook anymore that jury's still out. and secondly, even though the stock's run up, it's down 20% from its high. so is this a stock that can move if you're getting options, if you're getting paid in stock >> with all of the other ipos coming. >> is this place going to attract talent >> it wasn't the only thing, bank of america analysts cut their price target on the shares topic two is the college admissions cheating scandal, which has already landed ceos and celebrities in court and may

have put them in the crosshairs with the irs as well, robert, as we just begin to look at the fallout here. >> yeah, there were two frauds here one was the bribery and the second is the tax scandal. and what many people didn't realize is the vehicle for all this was the charities designated by the irs. you look at those who gave $2 million to this charity could write it off on their taxes. so the irs is looking at, a, how to claw that back, but b, there were lots of schools and groups that got money from this charity that were not named in the scandal. these schools are looking back and saying hmm, we don't know what happened to the $250,000 or where it came from, but we've received it and we're looking into it. this shows there will be more charges and investigations to come -- >> what's most likely to happen, is that people caught up in this will get charged what if they say they genuinely didn't know it was a charity, even if they did know they were doing something nefarious with the college -- >> they will be fined. there is a 75% on top of what they should have paid anyway, so

they'll be charged with tax fraud. and they'll do that because they signed a letter saying i did not receive anything of value in exchange for this money. >> oh. >> ooh. >> which is false. >> they would have taken admission to a college. >> correct, correct. so, meanwhile, you have them on the phone saying, just to be clear, i paid you $50,000 to get my kid to take this test so it's a pretty ironclad case, and they're going to be charged and probably have to pay back money, plus a penalty. >> wow. >> i mean, you paid your way to bribe your kid in and then you tried to write it off. like, could it be any worse? >> how bad could these people be >> so terrible. >> topic three axios is reporting that in private, president trump is sounding off to friends about his dislike of autonomous cars, saying the concept is crazy and that autonomous cars will never work now his own transportation department is actively promoting the technology, guys a raft of car companies, including gm, are looking to this as their future, but i've got it say, i've ridden in it firsthand. this stuff is not ready for prime time every time i say that with regard to tesla, i get a lot of

blowback i don't know if their system is so much more advanced than the rest of the field, but they often still encounter problems with the weather we've had fatal accidents happen in states like arizona is anyone out there trying to make the case, yes, it is ready for prime time >> i mean, no developments of this kind of nature will happen without some kind of a cost associated with it, and it's unfortunate right now that the cost has been human life at some point. with regard to whether or not americans -- most americans do feel as though this is still in its infancy. i don't know if i would feel comfortable getting in an autonomous vehicle driving at anywhere near highway speeds i have said it in the past i've driven in cars that already have lane assist technology, and even then when i feel like i lose control of the car, i get a little bit freaked out so, i kind of want to feel like at least for now that i have more control over the vehicle than a computer does and of course, we talk about all this in the guise of software updates. they may be needed and may lead to some undesirable outcomes and for that reason, it's going

to be a little tough to sell this. >> but people are terrible drivers. and machines eventually -- >> but worse than machines >> well, we don't know on a mass scale yet. >> we don't know. >> but point is, whenever a machine kills a person, horrible as it is, or injures somebody, we hear about it the thousands of accidents a day where it's a person driving, we don't hear about it. so you know, it's an open question, but i do think it's going to take longer because just the amount of data that this world will have to create and collect to make it safe is going to take years. >> and i'm fine putting them on the road once they can reduce fatalities down to what human drivers can. i just don't want them on the road before that. >> i'm kind of in your camp, kelly. i don't think it's ready for prime time i certainly don't know i'd be comfortable driving around in one. aaa says 70% of u.s. drivers say they may be scared but you think of people texting and driving and distracted driving. could a machine be more reliable than someone not paying attention? >> but when people are relying on lane assist and cruise

control, they're texting more. so some of this is making the problem worse before it can make it better. all right, let's talk about this pet hospitals are facing a serious shortage of dog blood. jane wells is in thousand oaks, california, with princess leia jane >> reporter: yeah, she's the real star here guys, in the $17 billion-a-year veterinary business, there's a huge gap in the model where pets can help each other through blood donations. there are very few national pet blood banks across the country and so, what happens, because there's always a shortage, is places like the blue pearl pet hospital in paramus, new jersey, have started their own little mini blood banks with a pool of donors, dogs and cats have to be a certain age and weight screening donors annually can cost $1,200. so to cover that cost, plus the equipment and training, even though it's a non-profit, it can cost hundreds of dollars for a patient to get a unit of blood, but one donation can help three

or four pets >> are there dog blood types the way there are human blood types? >> reporter: there are two blood types for dogs there are two blood types for cats i don't know what hers is. they cannot donate to each other. and human blood doesn't work we talked to one dog owner who was, like, so desperate for blood. she said look, i'll give my blood! they said that doesn't work. i have two other dogs, they haven't been screened. it's a supply and demand situation that is out of whack and most of us don't think about. >> and jane, there was the whole issue about the greyhounds and this blood slaves where former greyhounds were being raised, bred, kept for their blood, and peta and others say you've got to shut this down. but that creates more of a shortage even some legislation. how has that fed into the problem? and what do you think of that whole design >> well, there have been allegations of that, which i don't think were proven. that was at one of the national pet blood banks. but the question critics have is your dog is not giving con cent to the donation. but the argument is your dog

doesn't consent to anything at the vet, to surgery, to getting his or her teeth cleaned, to anything like that so, it is -- obviously, you have to be careful. but for example, at blue pearl vet, the animals cannot donate more often than at the most every ten weeks. and they have to donate at least four times a year to be in the system but that's a thing can you imagine? i don't even think of, oh, hey, let's make her a donor. >> right. >> that's an interesting concept. i hadn't thought of it before. >> i would do it. >> i don't know how she feels about it. >> i mean, i would try to find a way to kind of, if it was a security measure, it was an insurance blanket for my pet i might consider doing it. >> but you can't really bank your own dog's blood in advance. it doesn't -- because you don't know when you're going to need it so that becomes an issue as well but it's so much easier to find a match because it's only two times. >> that's true and maybe everyone now when going to the vet should think about their vet being a donor so they can be a recipient some

day. jane, thanks. >> reporter: yeah, i think if you're getting your pet's teeth cleaned, they're already goi to be under, that's a perfect opportunity. >> oh, they put them under to get their teeth cleaned? geez >> and remove their teeth. >> oh, yeah, look at these look at these. >> my dog's missing one or two of those >> aw. >> princess leia >> leia's a star. >> poor leia. >> it's a great story. dom chu, kate rogers, robert frank, thank you all for joining me today something to do at the vet's office next time. one of russia's richest men is suing the u.s. government over sanctions cnbc's geoff cutmore spoke to him in a rare and exclusive interview. he'll join us from moscow with the highlights straight ahead. it's screening technology that helps you find a stock based on what's trending or an investing goal. it's real-time insights and information, in your own customized view of the market. it's smarter trading technology, for smarter trading decisions. and it's only from fidelity.

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welcome back to "the exchange." russian billionaire oleg deraposka is fighting back against u.s. sanctions in a rare cnbc interview with geoff cutmore. geoff is joining me from moscow with the highlights and fallout.

>> reporter: kelly, he hasn't spoken publicly for at least two years, but he's broken his silence because these sanctions that were imposed back in april he claims have cost him $7.5 billion to his net worth, and that's why he's filed this civil suit against the treasury and against steve mnuchin. he says that the treasury owes him that money back. and not only has it made his life difficult in the u.s., it's made his life difficult here in moscow as well let's listen to what he told me. >> i'm not just excluded from u.s. financial system. you understand my position i'm also excluded from russian financial system you understand that the russian government -- literally follow the sanction they don't want to risk any big institutions here to be part of this secondary sanction. >> reporter: oleg deripaska says the u.s. treasury has

overstepped his legal bounds and weaponized the u.s. legal system and the financial system to victimize him. now, whether his case will actually prevail remains to be seen, but i think the early opinion from some of the local experts i've heard on this suggest maybe not. but he's launched it nonetheless. back to you. >> and geoff, this fits with who oleg deripaska is, doesn't it? he would do something like this, and not just take this, but say, no, i'm going to fight this. >> reporter: absolutely. i asked him several times whether he was put up to this by president putin or the kremlin and he denied that not only has it damaged his life's work, he says, by making him sell down stakes in two key businesses, but he argues it's caused him immense emotional distress, and he says that's

worth $7.5 billion back to you. >> all right, geoff. thanks so much it's a great interview geoff cutmore is in moscow tonight. and lyft is beating the likes of uber, slack, and airbnb to the public markets. show sta. how much money the ride sharing service is looking to raise, next jamie dimon will appear on "the exchange" on wednesday. a big show on wednesday, don't miss it. ill be the kitchen. ill be the kitchen. and we'd like to put a fire pit out there, and a dock with a boat, maybe. why haven't you started building? well, tyler's off to college... and mom's getting older... and eventually we would like to retire. yeah, it's a lot. but td ameritrade can help you build a plan for today and tomorrow. great. can you help us pour the foundation too? i think you want a house near the lake, not in it. come with a goal. leave with a plan. td ameritrade. ♪

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patherno the globe.com with the largest first gain of any ipo back in 1998 let's start with you and the latest from lyft >> reporter: hey, kelly. the lyft ceo just left jeffries where we're at right now, the third and final bank he'll be at today talking sales forces of three underwriters, j.p. morgan and jeffries about how to pitch this deal during the road show process and i'm told by sources now he's done with the three meetings, he may meet with some investors this afternoon but the road show really kicks off in earnest over the next three weeks tomorrow some of the key questions that they're expecting investors to ask over that, what's up with the dual-class share structure of the voting powers by the two founders also, losses they're widening 20% higher in 2018 than 2017 a billion dollars worth of losses last year, as well as

competition from rival uber which is also planning its own ipo in the next few months, kell >> how significant that lyft got out first? >> i don't know that's going to make a huge difference i mean, it will give them a little buzz and edge, but they still will be david to uber's goliath and i think those guys have been executing really, really well. the brand relatively untarnished compared to uber and again, it's a good positive thing. raising up a couple billion in capital, but big picture, i don't think it will make much of a difference. >> what do you think of the criticism by paul singer today and others about that dual-class share structure? >> i think it's brilliant. i believe firmly that founders should stay in charge. i think shareholders are akin to patriots in a restaurant they may pick what's on the menu and choose what they want to eat but god forbid you let shareholders into the kitchen. >> a lot of activist shareholders who say we have a better, clearer sense of what

leads to good investor returns management is sometimes too focused on its own compensation or on growing so big and, you know, grabbing territory >> total nonsense, total gibberish. of course shareholders want backseat drivers but generally useless. bet on a team, you should be able to sit back, relax, put in your ear pods and enjoy the ride never put your hands on the steering wheel >> let me ask you too, whether this year resembles anything like 1998. we're 20 years on, a bunch of ipos but not quite there yet, are we >> this is not the same thing as the dot-com mania back in the days for anyone who may have caught the boom, these are huge between lyft and uber and slack and airbnb, these are real companies with staying power and they are, especially the uber and lyft are part of an explosive new

economy. everything is moving to ride share and more over, moving to autonomous cars. they're part of the beginning of transportation revolution. >> all right stefan, great to take your comments leslie, appreciate it as well. those shares in a couple of weeks time that does it for "the exchange." i'll join bill and courtney for "power lunch" which begins now >> yes, thank you, kelly i'll see you in a moment i am bill griffeth courtney reagan will join us soon today the faa approval of the max jet. did boeing have too much sway in vetting its own planes president trump going after general motors over the weekend, attacking google as well we have the fallout for both of those companies. and as you just heard, lyft begins its journey to go public. the first big tech ipo of 2019 what investors need to know before they jump on the bandwagon. "power lunch" starts