>> adent there's a lot of call activity in there i like this name based in ireland >> illumina. >> thank you for watching us "the exchange" with kelly starts now. >> hi, everybody here's what's hide wall street is betting on a trade deal ahead of the president's meeting with china's vice premier today this as china's market hit its highest level in a year. are investors overoptimistic plus tesla's tumble. stock down big today on disappointing delivery numbers and in just an hour elon musk's battle with the sec will be in front of the judge we'll take you there live. jamie dimon is defending capitalism and millennials want a $6,000 fannie pack that's ahead in "rapid fire" we begin with dye's markets.

>> everybody else may be taking a more measured approach to markets. we're mixed. dow jones industrials moving a little bit lower still up 94 points here. the s&p and nasdaq both just off fractionally for the nasdaq. marginally for the s&p for the s&p and nasdaq we'll nap five day winning streaks if those losses hold. a key industry to watch. the home building sector it's up a percent and a half we got some mortgage refinancing numbers yesterday. the highest levels since september. by the way we moved up about 28% since the lows we saw back in late december. home construction something to watch. then the big ipo of the day, trade web, those shares pricing at $27 now up to at least $34.60. 28% gains. the ipo rush continues with

trade web for right now. the sentiment seems to be positive we'll see if they can keep those gains and what lyft is struggling to do right now. >> welcome to the "the exchange". i'm kelly evans. in a bright sign for u.s. economy weekless job less claims fell to the lowest level since 1969 shanghai closed at its highest level. chinese stocks are up 29%. the president said earlier trade talks are coming along well this as german factory orders posted their biggest decline in two years. bob pisani is now we new york stock exchange >> global markets are generally up based on what i call the bottoming narrative that the bulls had been pushing it goes like this. 40 puerto rico of the s&p earnings are outside of the united states. the decline in china and europe

is bottoming out u.s. based earnings are strong the earnings won't go negative and stabilize in the low single digits for the s&p 500 because we won't have a recession in 2020 okay that is the bull story traders are buying this for now. they are buying because they see progress on trade talks that will help stabilize china and the u.s. and seen better china data recently. but the european economic data out is not supportive of this. german factory orders were terrible data has been mixed in the united states. that uncertainty is what's keeping us just shy really 2% shy of the old historic highs and kelly you want to see what trade optimism is doing. take a look at boeing. this is 80% of the gains in the dow. s&p is negative all on hopes of trade talks turning out well back to you. >> that explains it. thanks, bob pisani u.s. and china are reportedly approaching the end game in this round of trade talks the president earlier also said talks are coming along well but

that it has to be a great deal with china joining me now with more is eamon javers at the white house and making a special onset guest appearance, eunice yun kick us off. what's the latest? >> reporter: we expect to see the president in the oval office at 4:30 this afternoon with the vice premier of china. the question is, what are we going to see a number of news outlets have been predict today that the president is likely to announce a date or at least a summit with xi jinping to finalize this trade deal that would be a big development if it happens. white house aides cautioning they are not expecting to see that later this afternoon. on the other hand, the president is an unpredictable guy so we don't know what he'll say when we get cameras in the oval office later today >> eunice, from the chinese point of view here, the stock market is telling us one story

which i don't know, do you think it feeds into this idea that a trade deal is happening and will be good for china or is that a separate story >> it would be good for china because it would lift a lot of the uncertainty over what's going on in the economy. that's one of the reasons why we would expect chinese would argue that the tariffs need to be lifted what we've done over the past several days they would argue that we have this new foreign investment law and they are tweaking to it make sure it can be implemented which is one of the big questions that the u.s. business community had they were talking about look we made some changes so that fentanyl, related substances are on this drug controlled list that's another topic that has been important to the united states so we're making these concessions and changes and even with our clued execucomputing industry chinese said we've done all this

for you, so now it's time to thrift tariffs the question is whether or not the u.s. want to thrift tariffs. from the u.s. perspective they feel tariffs give them leverage and they want to make sure even if this deal is done they are still able to have punitive tariffs in place if they don't have the beijingers making good on their promises. >> is the mood in china when it comes to the u.s. the president likes to emphasize his personal relationships with these leaders in part to get a deal done what's the mood in china broadly when it comes to the u.s. and the way in which these talks have unfolded? >> it's a big place. difficult to say on the whole people want to see a deal done because they do want to see that uncertainty lifted especially in the export sector. but at the same time there's a sense that they don't want the chinese government to just give everything away and especially from hood's perspective he has to go back home and justify to a

very split group of politicians whether or not this deal is actually going to be good for china. so he has to think about the domestic factors as well >> i'm curious about this. as someone who works for a company in the u.s. and journalistic one as well, is there a sign that they are less oppressive on that front lately or more so even an nes you have given your reports >> it's gotten tighter we get censored a lot more we're now censored on anything with the idea of president xi jinping being in power for his life the constitution being, you know, kind of changing so he can be in power. that has become sensitive. in the past what you would see get censored is pictures of protesters now even if you have a discussion about a sensitive

topic that gets censored there's a lot of sensitivity about his leadership and things in the economic. in the past it was human rights issues now stock market falls or -- >> getting blacked out for that. >> if you have a stock market official saying it's unfair. or over capacity issues. for me if i have to go report in a steel town it's always really challenging. you almost inevitably get detained >> so interesting to know what's really happening on the ground there. with all this said you mentioned earlier about having a date for the summit or not. how important is that? should we be looking for that as a sign as sort of the end game and if we don't get it, then what >> it's a sign of the end game does the president want to run a play here or punt? remember this is a president who has punted twice already this week he had this idea earlier in the week that he wanted a major health care proposal out of

republicans on capitol hill, wanted to pass a repeal of obamacare this year. he's been forced to punt on that idea he's saying we'll do this after the election he just punted on this idea of closing the u.s.-mexico border this week which he threatened to do that idea is off the table now is he willing to take simply whichever deal the chinese are offering today in order to not have to punt on this or is the president going to sort of double down here and push for a deal that does have fundamental structural changes in the economic relationship between the u.p.s. and china that's an open question. we don't know what the president's mindset as he goes into this. >> thank you very much now let's talk about shares of tesla which were down nearly 11% earlier this morning after spoifting delivery numbers last night all of this as elon musk's legal team is facing off against the sec in court today

let's go to phil lebeau who is outside of the courthouse. >> we're about 45 minutes way from the beginning of hearing where the sec will ask a federal judge to hold elon musk in contempt of court. this is a battle that's been brewing in the last eight months let me run down the key moments. in august elon musk sent out the tweet of taking tesla private. that launched the sec to start an investigation then in september musk agreed to pre-approved communication in december he said he had no respect for sec. sec filed a contempt of court charge in february against musk because he once again sent out a tweet this time about production numbers for tesla this year. he corrected it a few hours later. sec said the bottom line is this, this person the board of tesla has been auntable to

control despite he signed an agreement he would have his communications pre-approved. for the judge does she find him in contempt of court does she say this is a minor infraction, don't do it again. what will she do it's at her discretion this hearing that starts at 2:00 probably going to runabout 90 minutes. no indication the judge will rule from the bench. or she could take it under advisement and then in a week or two we'll gate decision from the judge. >> tesla shares are down 8%. let's talk more about the impact on the company both from this hearing and from those delivery numbers. joining me is charlie grant calling tesla's delivery as a dud. paul grassley is here. charlie, just first on the delivery figures analysts were looking for 76,000 cars for the quarter.

they delivered 63,000. for me tesla is one of those stocks where you say at least they did 63,000. why was it such a disappointment to the investment community? >> this report is a disaster 31% sequential delivery decline from q4. that's not a legitimate growth story. tesla was up 110% year-over-year from its lower delivery figure but that was before the model 3 ramp had really begun in earnest. those numbers look who you consider all the stuff tesla pulled out in the quarter to improve their footprint, expanding into europe, expanding into china, cutting prices three times in a quarter for, you know, heavy machinery that costs tens of millions of dollar tesla continues to struggle with production and logistical challenges >> how much is the loss of rebates as i understand more expiring this summer how much of an impact is that happening. traditionally with tesla it

would seem that's not a big factor, these are expensive cars is it more important for the model 3 or all of them >> it's important for all of them $7,500 check when you're picking out a car is a serious inducement and when it goes down to 3750 that's meaningful but not as great it will go down and get cut half again in july. then when you're trying to sell a $35,000 car which tesla has been trying to do since 2016 you need that $7,500 bump to reach the aspiring consumer. >> paul, let's talk about the hearing for a moment and some of the outcomes the judge could hold him in contempt of court. there's a lot of focus on whether any of this would lead to elon musk stepping away or being pushed away from his day-to-day responsibilities as ceo. what outcomes do you think is likely >> this production short fall which was significant as charlie

points out and in the court hearing you have to wonder, you know, how much better off tesla would be if elon musk was not distracted, if you will, by all his fights with the sec and can focus on production and distribution and the kinds of things that a normal ceo does. i think the court and the sec are a bit in a bind here capital puchnishment would be throwing him out of the company or banning him from running any public company for violating this agreement with the sec. he's viewed as being the essence ever tesla it's his brain child he's not only the public figure but the creative genius behind it at some point people have to start wondering, would this company be better off with a calmer managerial presence in charge as opposed to a genius leader but a mercurial leader.

musk has so much of the shares himself that won't happen without an sec or court order which i doubt they will be willing to do. >> charlie, do you want to weigh in just on whether the investment community would prefer to see him step away from day-to-day duties. >> that would be a hard pill to swallow for investors. you have this company that has super valuation based on this superman ceo and there's not much meat on the bone behind that myth but it's significant -- it's a significant driver of tesla's value. if you have a normal auto company running smoothly you get a premium in the stock market and that translate to a $40, $55 stock. >> gentlemen, thanks tesla shares are down 8% >> breaking news on amazon and ceo jeff bezos >> reporter: well both jeff and mckenzie bezos tweeting about

the dissolution of their 25 year marriage there have been a lot of questions swirling what would happen to mckenzie's share and voting control she tweeting a statement grateful to have finished the process of dissolving my narj with jeff. happy to be giving him all of my interest in the "washington post" and blue origin and 75% of our amazon stock plus voting control of my shares to support his continued contributions with the teams of these incredible companies so that means that she will be keeping 25% of the couple's amazon stock after finalizing the divorce we'll get into this and continue to figure what this means. she's giving up 75% of her amazon stock and control to jeff bezos. >> not much movement in the shares thank you very much. here's what else is still ahead on "the exchange". >> announcer: coming up stocks higher on hopes of a trade deal with china but could weak data out of germany derail the rally

plus, jamie dimon defends capitalism and talks about dangerous days ahead and how ai is finding all sorts of dubious claims in expense reports. and saving companies big money in the process this is "the exchange" on cnbc

welcome back researchers at the imf are warning about the impact of the president's trade policies on global growth. this has happened as chinese stock market has surged to 12 month high welcome to you both. seema, first of all what's the story with this surge in the chinese stock market year-to-date >> a lot has to do with the china stimulus, different stimulus efforts announced by the people's bank of china over the past two and a half months you start seeing that kicked into the economy on manufacturing and services but that's only one piece of data we have to release more to call this a china stabilization the market very excited about the prospect of china bottoming out and that's why you see the markets outperform up 30% this year >> a big move. the imf said if 25% tariffs were

slapped on all goods from dhien the u.s., that would be a half point drag on the u.s. economy and a point drag or more on the chinese economy. >> it doesn't surprise me that the impact is relatively larger for china. they are more dependent on trade than we are. i would be cautious about that pmi number for march it reflects a lot of production increase as a result of an expected reduction in vat, value added tax deduction reduction beginning april 1, so what happened is incentivized a lot of producers production was strong. but new orders still weak in china. not quite seeing a bottom. >> that feeds into my next question, paul which is on germany which is awful i can't believe some of the numbers they are putting up. i don't understand the abruptness and verity of the

downturn if you look at the pmi data there which points a 1% contraction or factory orders down 4% in a month, 8% on the year what's going on? >> china has a lot to do with that i think there's more to it than that u.s. auto sales appear to peak in 2015 and have been in a decline except for hurricane harvey now we're seeing global auto sales start the to weaken and that will hit europe hard and particularly germany >> isn't the german stock market also up this year. i'll check it. but the dax seems to be taking it in stride >> there's expectation the central bank in europe will continue to stay on the sideline ready to jump in as they need to, to provide a floor to europe's economic distress that they are seeing play out what's interesting about this germany story is in prior economic down turns iran eure

led by greece, cypress, these smaller economies and concern it would bleed into the rest of europe this time it's the engine of growth which is germany. to your point it showcases a larger problem and interesting trade dynamic between germany and china and how interconnected those two economies are. >> guys thank you both seema modi and paul christopher. coming up top four excuses for people make for not investing and why "fast money's" analyst is not having any of it and tips is not having any of it and tips on how to get started. locked eyes and continued dancing. pinch myself and make sure i'm not dreaming. every now and then, i'm like, "wait, did that happen?" (gasps) i've got photos of it, it must have. (vo) get more music on us with vip tickets to the best shows, like shawn mendes and camila cabello. plus, save big when you switch. only on verizon.

welcome back jeff bezos will keep control of amazon in a divorce agreement with his wife. that news crossing just a few moments ago. let's get more details from robert frank >> all the discussion but what really matters is what we just learned what will happen to 16% shares of amazon that jeff bezos owns he'll keep 75% of those shares mckenzie will keep one quarter of those shares. she will now own 4% of amazon. so this was a massive win for jeff bezos she was entitled to get half she got 25%. >> we'll come back to this in just a moment. elon musk is arriving at the courthouse let's listen in as reporters try to ask him questions >> elon, what do you have to say to judge nathan today? >> do you have any comment

today? >> no comment, elon >> you want to say something >> how about afterwards? >> okay, guys. >> take a left sneeze easy guys >> i have great respect for the justice system i think the judge and the american system is outstanding >> what about the sec? >> your thoughts on that >> that is elon musk arriving at torture downtown phil lebeau is standing by phil is chasing him down, really he said he respected the u.s. justice system but only chuckled

when you asked if he respects the sec. >> if you cover elon as long as i covered him you know he wants to talk. you know he's chomping at the bit to say something you know his attorney who is escorting him in made it very clear keep your mouth shut, let's get through this hearing, there will be a time you can talk about the feelings about the sec and everything that's happening but this is not the time i'm telling you i've covered him a number of times. it's clear he wants to say something but he clearly has been told by his attorney keep your mouth shut. >> you mentioned the hearing is about 90 minutes might we see the same kind of scene on the way out >> i think so. and if the judge doesn't rule from the bench, if the judge says i'll take this under advisement you'll hear from me whether it's a week or two weeks i wouldn't be surprised if elon musk's attorney says don't poke the bear, keep your mouth shut on the outside or say something very bland like i respect the justice system and i'm glad we had our day in court, blah, blah

the stuff you expect people to say and then you know he wants to say so much more. >> phil, good stuff. phil lebeau chasing down elon musk who just arrived for his 2:00 hearing with the judge for the narrative whether he's in contempt of court regarding the sec. robert frank is here to detail what's happening at amazon, robert, where the takeaway of the mckenzie bezos giving up 75% of her shares. >> she could have gotten 50% of shares but only took 25% she's going to have 4% of amazon she's worth around $36 billion not bad. but she is not as many expected will not be the richest woman in the world. jeff bezos more importantly will control in terms of voting all of his shares. so nothing changes for jeff bezos in term of the number of shares he votes even though he's giving up economic control of 25%. huge win for him and his

attorneys because she could have gotten half. >> he has 12% control of the shares >> voting at 16% no one else in the company that's remotely close to that. so effectively he still has very much control of the stock. >> we've seen ex-spouses be involved after their divorce with the company obviously wynn comes to mind is this mckenzie bezos saying she doesn't want to be a part of it when it comes to the future of amazon the company. >> clearly many people thought once you gave her control of 50% or whatever ownershipship you had an elaine wynn situation shareholders were not that worried because shares didn't pop. they are down a bit. my guess is shareholders kind of knew they would come up with some kind of resolution that would be in the interest of jeff bezos. she still is doing very well with $36 billion

clearly didn't want to take control of amazon or risk his control, so status quo for him and she does well. >> very well as you mentioned the shares still down half a percent. robert, thanks very much a whole lot more still ahead on "the exchange". >> announcer: coming up, walmart banks on babies. algos can't keep up with brexit news and a $6,000ane fnipack that's ahead in "rapid fire" what do you see? we see a billion more people breathing free. we see access to fresh food being the global norm, not the exception. we see homes staying cooler, without the planet getting warmer. at emerson, when issues become inspiration, focusing core strengths to create a better world isn't just a result, it's a responsibility. emerson. consider it solved.

so, you're open all day, that's what 24/7 means, sugar. kind of like how you get 24/7 access to licensed agents with geico. hmm? yeah, you just go online, or give them a call anytime. you don't say. yep. now what will it take to get 24/7 access to that lemon meringue pie? pie! pie's coming! that's what it takes, baby. geico®. great service from licensed agents, 24/7.

. welcome back let's catch you up on a few stories. time for "rapid fire". here with their takes and to break down today's stories are dominic chu and frank holland. let's talk about constellation brands it's up nearly 6% after the company beat profit and revenue estimates on the strength of those mexican beer brands. sales of wine and spirits fell flat they dropped 7% in the quarter brewer is also selling about 30 of its low end brands in that category for nearly $2 billion >> they are getting rid of those low performing wine and spirits. they have seen great performance

out of corona and madeljan good performance their earnings call they announced their canopy announcement, expanding their he worths to edibles. and baked products a lot of excitement. after they made that announcement the stock price really jumped. so just exciting stuff there for constellation which has its most comprehensive investment in cannabis >> a little bit about the nvidia bitcoin issue which the stock once it became -- if you wanted to trade bitcoin -- you live by the sword and die by the sword cannabis very hot and trendy right now but wilma you're the as most things >> with the bitcoin thing it was more difficult with bitcoin it wasn't easily trafficked you had to go through different exchanges. whether they were global or not.

that's why you got the stocks. in this case here there are pure play cannabis companies that you can go into if you're looking for that kind of leverage. like going gold prices versus gold miners. if you want to play marijuana you go to the players. >> now we're trying to time certain parts of the market that are not canopy related i remember a time when beer was gone all about wine and spirits that was the growth part of the market trying to time this now is tough. >> the old ge critique they bought and sold in the last 15 years the wrong thing at the wrong time >> if you looked what they sold those low end wine and spirits was $1.7 billion they were looking for $3 billion. that's a huge discount

maybe it will pay off to be a much more focused company on the high end stuff as well as marijuana. >> catch bill newlands on "mad money" retailers are revamping their baby departments to fill the hole left by the babies "r" us shut down. walmart said it's adding thousands of products to its baby registry and new baby brand. j.c. penney is adding baby departments. target just expanded one much its inhouse brands it's a baby boom >> makes perfect sense toys "r" us was about a $12 billion business before it went bankrupt amazon is getting into the toy business nothing will come bare to barbie dolls in an aisle when you bring a kid there. that's the best sales pitch. no online brand can ompare >> registry, i don't know, baby list it's a proxy for amazon. >> you know i've done it, you've

done it. the baby thing, we mention pets all the time there's nothing parents with the ability to do so will spend on their children i know i'm part of that whole construct. as you talk about the expansion, this is another case of business being able to expand on the backs of another business's failure. this is the time to go in there. >> babies "r" us may not have been broken but toes r you had a tochb debt that pushed it to the brink. >> it doesn't necessarily mean babies are no longer in terms of demand of spending it was a by product of the management of toys "r" us that made it over encumberlandered in debt you bring up a good point. huge opportunity there i just remember, you know, just seeing so many boxes of people receiving things from babies "r" us that was the register du jur.

>> now it's bye-bye baby >> email, addresses from people who wouldn't shop at walmart but their friends do >> babies are the gateway drug next hour don't miss the kpru with doug mcmillon >> machine systems are having trouble keeping up with news headlines on brexit. 1,000 headlines in a 24 hour period some hedge funds are opting out of trading the british pound because of the current climate i'm glad it's not just me. >> what's amazing about this story the human traders and hedge funds they say that their value add is they can understand the nuances that machines can't. this is a story and this is a situation, i mean in that reuters piece they said up to 400 headlines a day from

reuters, 1,000 from other news sources. even humans can't digest that. the algos can't do it. people are just saying i'm it issing this one out. >> i speak as a information portfolio trader the issue is even if you think you can navigate it better if there's a flood or onslaught on the other side it doesn't matter how smart you are you are beholding to what those things will do for the computer power side of things just get faster processors you can solve these problems >> i was going to say show us those cuff links >> bulls and bears always that debate going on. >> finally the french luxury label is out with a new line of products including a $6,000 fannie pack. hermes is courting millennials >> supreme the skateboard brand

they sell one for $5300. gucci has one for three grand. it's a thing >> this is a secular story hermes in its earnings report said it's because of this movement towards casual attire for men that they are not selling as many scarves, silk, that kind of thing the textile business at hermes slowing growing unit in 2018 people are opting for the casual side i bring it up because there's this long standing debate about whether you can wear lululemon pants. joe is on the right side >> has eamon javers worn the $5,000 fannie pack to the of yet. >> i don't know a woman who has a ubag. april is financial literacy

month. karen will join us with tips how to get your portfolio started. "the exchange" will be right back [knocking]

♪ ♪ memories.

what we deliver by delivering. metropolitan capital co-founder and ceo karen finderman pen agnew op-ed on cnbc highlighting her top reasons why it's never too late to start investing it's matter of cnbc financial wellness initiative. a partnership we have with acorn. joining me now is karen finderman. great to see you >> really nice to see you too. >> let's go through the points here the four excuses for investing and your rebuttal. number one which is the main one, i don't have enough known invest >> that's an easy stumbling block for people to use as an excuse it isn't an excuse right? with these kinds of products you can invest as low as $50 a month

or even less than that and it's so important to take that very first step >> if you do that. if you put 50 in one of these apps which make it so easy do you pick an index fund >> you pick an index fund. don't need to be stock picker. better that you're not a stock picker you put it in an index fund and that's the sort of habit you're trying to develop of doing that every month. not a choice don't make it a choice to do it north. that's just what you do. just do it >> how about the next one, i'm so young, there's plenty ever time later for me to think about and work on all of this. >> the biggest reason to not do that is the power of compounding. so it's not just that you're delaying the $50 it's whatever else you could be earning on that. over and over and over again that's a really important thing to understand, so if you start to do that, even if you're really young you'll see it so much, you know you'll see the compounding effects as you go

on that's exciting. that gets you interested in keeping that habit up. it feels good to do that >> we were talking to tony robins about this yesterday. if you start putting money away in your 20s you only need $3,200 a year to have a million at retirement 50s and 60s you have to do 75 or $150,000 it's one of those weird things where you're saying the younger you are the more reason there is >> exactly einstein said compounding interest is most powerful force in the universe. that's a good reason >> number three i'll start to invest when i make more money. >> right i hear that a lot. it seems to make sense to people when they say it in reality it's like saying i'll go to the gym when i'm in good shape. right? it makes no sense. how you get a really lot of money is start investing when you have a little money and more and more that's a bad excuse.

>> what do you think about allocation do people need to worry? they started to do this. going along. do they have to start worrying about bonds and cds and being conservative are your saying just get involved with the stock market, again broadly speaking and don't overthink it >> that's what i think, right. i always have been a stock market person. i love equity exposure but i think that over time that is the place to be and don't over think it. and really don't let your emotions guide you because when you hear the market is bad so i shouldn't buy that now that's when you should buy don't let your emotions get in the way. just do it >> here's the final one that's the flip side of what we were talking about earlier or goes to the point of how difficult it can be i want says i'm too old for this to make a difference >> i hear that a lot too you're as young today as you will ever be for the rest of your life. we may live a lot longer than we

think we'll live that's really not an excuse either it feels scary to not safe and invest it actually decreases the fear when you start doing it. head in the sand not a good opening. >> not for anything. so these are the rebuttals if you hear people say one of these four things. take karen's points and say no >> you got to do it. >> thank you very much for more visit cnbc.com/investinyou coming up shares of snap are surging in 2019. they are up more than 100% so far this year. we'll go live to the first-ever partner summit in west hollywood e ere the founder has just taken thstage to reveal snap's growth plan. we're back in two. y. sounds like a case of analysis paralysis.

is there a cure? td ameritrade's trade desk. they can help gut check your strategies and answer all your toughest questions. sounds perfect. see, your stress level was here and i got you down to here, i've done my job. call for a strategy gut check with td ameritrade. ♪

the latest inisn't just a store.ty it's a save more with a new kind of wireless network store. it's a look what your wifi can do now store. a get your questions answered by awesome experts store. it's a now there's one store that connects your life like never before store. the xfinity store is here. and it's simple, easy, awesome. welcome back this was the scene outside a courthouse in new york just a short while ago with elon musk saying i respect the justice system that hearing is just minutes away from 2:00 p.m. eastern and bring you all the details as we

continue to get that in the meantime, shares of snap doubled in 2019 but down 23% over the last year the first ever snap partner summit under way in west hollywood and ceo evan speegle has taken the stage. julia boorstin with those headlines. hi, julia. >> reporter: hey, kelly. there are over 400 partners here of snap and they're all inside in the main south stage listening to ceo evan spiegel with their engagement with the camera software in that platform >> camera changes how we see, how we speak, how we shop and tell stories and so much more. but most importantly, our camera lets the natural light of the world penetrate the darkness of the internet >> that sounds like a little dig

of facebook. augmented reality tools to make snap lenses easier to use, more customizable with hand tracking and body tracking and even pet tracking, easy for everyone to create it's calling landmarker lens experience to add augmented reality layered to landmarks like the eiffel tower and the flatiron building. we'll hear about snap's game platform and more shows they're launching for discover and throughout today, we expect these executives to address snap's protections of user data, while also announcing their scale with younger users to rival facebook spiegel announcing it reaches three quarters of 18 to 34 years old and 19% of all 13 to 24 years old, more than facebook and instagram in the u.s. as well as the uk guys, just a disclosure here, nbcuniversal, our parent company, is an investor in snap. back to you. >> how does the pet tracker work >> reporter: so basically, what

their augmented reality tools, if you have the camera facing out and a person dancing around, you can recreate their motions with a bit moji or ask a costume on top identity. you could have the pet tracker identify a dog and have a butterfly land on your dog's nose >> all right julia, thank you so much julia boorstin out in west hollywood with these announcements from snap. expense report fraud cost companies more than $7 billion a year up next, the ceo of one company using artificial intelligence to fris sndg d eganfi aud. ern... i'm off to college and i'm not gonna be around... i'm worried about my parents' retirement. fraud. voya helps them to and through retirement... ...dealing with today's expenses... ...like college... ...while helping plan, invest and protect for the future. so they'll be okay... without me? um... and when we knock out this wall imagine the closet space? yes! oh hey, son.

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prevagen. healthier brain. better life. welcome back one of the biggest problems for companies is expense report fraud resulting in losses of $7 billion a year algos. the ceo of ai accounting start-up app zen anat, welcome. >> great to be here. >> it's interesting. you say by using robots or algos instead of random spot checks, companies check fraud more than

twice as fast and fraud losses are halved are we talking about fortune 500 companies using this >> yeah, so as the customer basis, more than 1,000 companies including 25%, we're finding before ai came in, companies were auditing and the chances of finding any kind of user fraud in that is virtually zero. with ai, we're able to provide 100% auditing of all expenses in the company. >> this technology, in some cases, found people that were charging $12,000 worth of doggy day spas on expense reports and snagged people trying to charge tattoos, some of the usual suspects like strip clubs, also, cigarettes, dog kennels, and shoe shines. does this behavior stop them from making the purchase or are

you not there yet? >> absolutely. it doesn't stop anyone from charging the card but stops the company from reimbursing those employees and taking those on their books. theauditing, happens after the fact, the payments were made, usually a whistle blower would find out these things are happening with ai coppiming in, it would e within minutes of a transaction being reimbursed, claimed for reimbursement. you can stop it before the money leaves the door. >> you think you can get expense fraud to zero? >> yeah, so understand that not everything is a fraud. right? so what happens is we find out our misuse, we do find fraud we find a lot of mistakes, but also a lot of compliance issues. it's about who might be entertaining the sales team, right? it could be people related to

politicians or government. it could be the violation, stuff like that. so what companies are looking at is to make sure that not only are we saving money, but also make sure we don't have any compliance exposure in the company. >> thank you so much we're out of time and with appzen thank you sir. that does it for "the exchange." i'll join melissa lee with "power lunch." which starts now i'm melissa lee, on "power lunch. elon musk arguing his case president trump set to meet top trade negotiators in china at our doorsteps, perhaps? breaking news moments ago with the control for amazon we've got all the details straight ahead plus an exclusive with walmart's ceo. "power lunch" starts right now ♪ >> let's get a quick check on