>> sector industrial group similar. oil and gas. we're seeing a lot of profit potential going forward. >> zogenix got beaten down early in the week. >> good weekend, everybody you, as well thanks for watching. "the exchange" with kelly starts now. thank you, scott hi, everybody. here is what is ahead. stronger jobs growth this morning, but weaker wage numbers. and the president hammering the fed to cut rates, again. we'll look at whether the ten-year yield is going back below 2.5% self-inflicted wounds. the president is not changing the housing market enough and that fannie and freddie still need to go how likely that outcome is plus, a big milestone in music terms for apple. is this a sign the services push is working if so, where does that leave spotify. that is all coming up. we begin with the markets

and dom chu is here. >> kelly, we have a dow up just about 25 points at the highs of the day we were up about 102 points so, as we take a look at what's happening here watch what's happening with the s&p 500. just a little bit away from 2900 2815 is an area of resistance before solidly above there and nasdaq up by 0.5 of 1%. if you take a look at one of the places we are watching closely, that stock market volatility has collapsed at one point after that jobs number this morning. we hit the lowest levels in the cbo volatility index since october 5th near the record highs in the stock market. so, again, a nice move here. you have to go all the way back to october to see the low levels there. and, if you take a look at the stock of the day, who's ready for a cocktail or a beer we're watching boston beer company sicker s ticker off 8%.

downgrading this company to a sell rated stock and it has a lot to do in the head winds in what they call fmb or flavored malt beverages a lot of success boston beer did with that category and grew it a lot last year. the comparisons might be difficult. remember, kelly, boston beer company is responsible for many of those kind of spiked seltzer type beverages >> fmb dom, thanks very much. welcome to "the exchange" everyone the president speaking earlier today saying the economy would climb like a rocket ship if the fed got rid of interest rates. the comments coming after a strong jobs report this morning. more on that in a moment for all the talk about a global slow down the shanghai composite just closed at the lowest level in a year. the best week since 2016 let's drill down more on the action in the stock market with rick santelli. once again, that tenure is the most clicked ticker on cnbc. >> hey, we have a lot of smart

viewers, what can i say. if you look at two days, couple things should jump out at you. a lot of volatility and jump up to what i have been pointing out is good resistance right around 255. here we sit at 250 and haven't moved much that's down two on the day, but up ten on the week as you see on that two-week char chart. it has been escalating two day on the dollar index is very important how important is that? look at it from the other side of the street. here's a chart of the euro versus the dollar. hovering just barely above 1.12. we haven't closed below 1.12 since the summer of '17. 97.67. the president might think it will fly like a rocketship, but some debate on that, kelly going to a crisis era tool at this time with the markets and the economy and jobs where it

is, might have exactly the opposite effect. back to you. >> we'll talk more about that, rick thanks so much one thing is certain about the jobs report this morning job creation did come roaring back in march. a far cry from the shockingly low figure we saw in february. added 200,000 workers beating estimates. unemployment holding steady at 3.8% wages eked out only slim gains the year-on-year growth rate 3.2% a step down from 3.4% steve says it's not a problem. here to take us inside the numbers is steve liesman and u.s. economist over at stockgen. this feeds the narrative that we are growing without inflation, doesn't it >> wage number is quite good you do above three and you take away the inflation which is 1 and change and positive real gains or inflation adjusted gains. i think that's quite good.

better than it was look, we went into this number thinking, wait, first, you know what number rick predicted you know what number i predicted? >> was this this morning >> we both predicted the same number 102,000. not only rare for me to get it right or rick to get it right. >> you were off by 5,000 >> oh, you are tough >> so, 2.5% is where immediately after this report came out, you might have thought, okay, strong report we're going to see bond yields moving higher after all the concern about the economy. it didn't really happen. is that because of the wage figures and because of the fact that we're still showing a slight deceleration over the last couple months no inflation really on the horizon and we have 3.2% i do agree to steve's point. it is still a pretty good number we had some noise the last few months the weather and the hours have been moving around and that gave us a very strong wage number and in march came back off a little bit running better than we did last

year the bond moarket is not concernd about inflation right now. >> we'll talk about everything going on with the fed, steve, but this idea that even though we're down at 3.8% on the unemployment rate, we're not running hot right now. inflation starting to accelerate and while the wage number is okay, you're not seeing the acceleration okay here you saw the labor force participation rate dropped a little bit and that broad gauge 7.6% >> right >> so, we still have a lot of so-called slack. >> i don't want to prematurely jump the gun, but let's follow your metaphor through. running hot like say a rocketship taking off. we're not running hot like that. very interesting to hear what rick talked about. all the things he talked about were commensurate with the federal reserve more likely to stay where it is at. the strength in the doctor tells people, hey, you know the relative between the u.s. and europe is more likely to remain the same than it is for the u.s.

to collapse. that would be a reason for dollar strength. slightly higher bond yields. another reason for it. so, yeah, we seem to be okay this idea of no inflation which somebody said earlier today. never mind there is inflation it's 1.8%. it's at or near the fed's target >> just not picking up >> just not picking up acceleration in the rate of growth >> for years this idea was that the economy is only a 1% or maybe a 2% economy if you add 200,000 jobs a year, you should overheat. that is not happening. >> i would go back to a great speech back in october where he said something new that is happening is productivity growth has picked up in this economy. gone up to almost double that right now and that, in fact, can help contain the wage gain so, wages are moving up gradually, but the fed is not concerned about that spilling over next into >> try this idea on. the idea that inflation and

unemployment is related. market gets tight and more money circulating. the idea makes sense what would be the wedge? what would be happening to the profit outlook prof vits have come down but the wedge between the working of the philips curve is that companies are taking it on the chin and not passing along. >> inflation is not up that much not much to take on the chin >> because they're soaking up this excess costs in their profits. >> instead of passing it along >> let's talk about the fed for a minute first, you had the steven moore nomination to the fed. then along comes herman kaine now both of them are in the camp, i believe, of what the president has been saying which is rates should be lower than they are now he repeated that this morning. he said as well, he actually thinks more quantitative easing instead of quantitative tightening right now is there a case to be made right now, no inflation. if the fed went too farr they

should dial that back so they have the expansion. >> cutting rates at this point i know the president is hammering on that point and these two nominees have fallen into line. larry kudlow saying the same thing. i think the fed is very much, or at least will try to not pay attention to any of that as much as we want to talk about it all day long they'll do the right thing for the economy, which is really just follow the data >> is the data suggesting that they made a policy era last year with the final two rate hikes? >> i think they changed because of what happened in the last week leading up to christmas but, yeah, i think to some extent they realized that was probably a mistake they didn't need to go at that point and the idea that they were going to be rigid in going another two times this year. the idea that the balance sheet was on disconnect from the fed and the market late last year. >> i agree with that and a political factor pressure that

comes in there >> we know about the political pressure. >> the fed doesn't operate in a vacuum, is my point. >> the political pressure is obvious. the president wants low rates. my point is, is the market making the case that the fed went too far and hiked too much last year? >> you could argue to look at the tenure or the two-year yield that the market thinks rates can and ought to be lower from here. if i was a fed official and i was printing 180,000 on jobs on average in an economy where i thought that i should only be printing 80 or 90 to take care of the workforce if i was at 3.8% unemployment and i was at target, i'd want to be a little higher here than lower. >> lower the wage sort of softness >> i don't have wage softness. i have wages rising. if you look at the longer term, not the month-to-month volatility higher wages the question becomes for the fed, it's aen maa emanagement a management where would i rather be wrong?

i would rather be wrong to the high side. unless i had a forecast which i would do 1% growth which is not mine. >> i think at the end of the day, you know, i get steve's point. but unless the numbers are picking up more than 2%, what is the chair? let's see how that evolves >> i agree with that i think really the question is, would i do that quarter in december or not? i could have gone either way i would have risked the extra quarter. >> guys, thank you both. really appreciate it omair and steve. sticking with jobs, demands for solar jobs dropped after president trump's tariffs. they are starting to make a comeback let's get out to kate rogers with more on where the jobs are. kate >> hey, kelly. that's right the solar industry is making a comeback of sorts here in california thanks in part to a mandate that means that all

newly built homes like the ones you see behind me here are required to have solar panels beginning in the year 2020 now, peter is the company that is working on the solar installations here they say they will do 12,000 solar installs this year and they really need workers fast. >> that mandate is going to increase our need for installers by roughly 300%. just based on current install rates today. so, translated eral terms, we will need another 350 to 400 installers by year end. >> the solar foundation is projecting a 7% increase in solar jobs nationwide this year. both because of that new california law and also because the trump tariffs of 30% on those imported solar panels are set to decline by 5% each year and ultimately be cheaper for consumers. but like many growing industries, the solar industry,

of course, faces a skilled labor challenge, as well peter does offer its employees 401(k)s, health care benefits if you're an experienced installer, you can make up to $50 an hour and one more important benefit is that they have a lot of ongoing training, which is a great way, of course, as we all know to hang on to your good employees in a tight labor market >> thank you, kate rogers. here's what else is coming up on today on "the exchange." ahead, a former fannie and freddie executive says if the president doesn't make drastic changes to our housing policy, we could be in for a sell-inflicted crisis. plus, when it comes to ipos, not all investors are created equal. who's got the advantage? and who is getting left behind and the story of a stroller that has everyone raising eyebrows about regulation. issues facing ou

this is "the exchange" on cnbc this is "the exchange" on 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, emerson. consider it solved. [kno♪king] ♪ memories. what we deliver by delivering.

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 last week the administration turned its attention to housing policy specifically on finance reform and some say it doesn't go far enough my next guest argues this lack of real change will cause a new housing crisis joining me now peter wallson

welcome, sir >> good to be with you >> you think this doesn't go nearly far enough towards getting rid of fannie and freddie from our housing system, is that right? >> yes, it's very discouraging this administration has been trying in many good ways to get the government out of the economy. but in an area of the economy which involves about one-sixth of all assets in the economy that is the housing market they are burrowing right back in to where we were in 2008 >> the product they are most known for 30-year fixed rate mortgage, 20% down payment the classic purchase that most americans are familiar with. do you this is flawed? >> the product is certainly flawed, but the idea that we need fannie and freddie for a 30-year fixed rate mortgage is wrong. the private sector has always been offering these mortgages. and they are competitive right

now with fannie and freddie. >> but if the private sector is offering them, then why are they flawed >> well, they're flawed because in a 30-year period, most people who take out a 30-year mortgage do not accumulate any significant amount of equity during the first seven or eight years that they're holding the home and paying off that debt. and then, according to the records, most people sell their homes within seven years and in that case, they will not be getting anything back in the way of equity when they sell their home so, to buy a bigger home, they're going to have to take t out more debt. and the increasing debt in the housing market is what is driving up prices. >> back to the private market that offers these loans in a competitive rate to what fannie and freddie offer, why would this product be available if it has the problems you describe? why would americans have demand

for it if it's not in their best intere interest >> the answer to that is that if you have a 30-year fixed rate mortgage, then the monthly payment is reduced when the monthly payment is reduced, you can buy a larger home that's why it is in the interest of the association of realtors and in some cases, home builders and certainly banks to support that idea. >> listen, i can understand the homeowners themselves, i certainly understand the attractiveness of a product for a monthly cost that is more affordable lets you access something you could never afford you seem to think that itself is a problem. what would be a better way then to make, would you want to see people put 50% down? you would want to see the monthly payments be much higher? what do you think is so misleading about this that is creating distortions across the entire economy

>> well, it's not that it's misleading it's something that the government offers that reduces the price that a person has to pay monthly. now, people can choose to use the government's facilities through fannie mae and freddie mac or use to use a private bank to make the loan that will cost somewhat the same every month. i'm not against 30-year mortgages, people should be able to make a choice one of the reasons that many people want fannie mae and freddie mac to continue in the, mat is there is a myth that 30-year fixed mortgages can only be produced by government-run agencies >> mortgage products and relatively high rates and home ownership, maybe not as high as ours what do you think would happen, it's impossible to make the transition from one system with fannie and freddie to one without it in an abrupt way, but

is it possible that the private market would actually offer rates or loans that were smaller down payment, smaller monthly payments, had their own sorts of problems or distortions or whatever built in. might the private sector solutions be worse than what we see with fannie and freddie instead of better? >> i doubt it. the private sector seldom gives away anything by taking a risk that the government is willing to take. and, so, if we had a fully private market, we'd have mortgages that would be made to people that they cannot only afford because they will buy smaller houses, but these mortgages will not default when we have a financial downturn as we almost certainly will if fannie mae and freddie mac and the housing requirements they will have to meet begin to do the same things that they did

before 2008. raise housing prices causing people to buy more expensive homes than the price of homes regress to the long-term mean. these people then have to end up losing their homes because they can't afford to pay for them in a downturn market. >> peter, who's trying to get home prices down in his neighborhood, thank you for joining me >> all right, thank you. >> appreciate it very much peter wallison with a piece in "wall street journal" today. i encourage everyone to check it out. amazon taking a bite of google and spotify getting leapfrogged by go two sports start ups what went wrong for the big baller brands. whether they were doomed from the start. "the exchange" is back in two.a, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible.

and when you do that, nasdaq. rewrite tomorrow.

yeah, i thought doing some hibachi grilling would help take my mind off it all. maybe you could relieve some stress by calling geico for help with our homeowners insurance. geico helps with homeowners insurance?

they sure do. and they could save us a bundle of money too. i'm calling geico right now. cell phone? it's ringing. get to know geico and see how much you could save on homeowners and condo insurance. welcome back to "the exchange." here are some of the movers this hour look at this the home construction etf is higher and on pace for its third straight day of gains. it's up nearly 5%. snap is jumping today up 7% this week and 113% this year. snap announcing a slew of new products yesterday and there's the chart. we're up 4.5% today. finally, some consumer names are hitting all-time highs dollar general, dollar tree and starbucks and costco all among the names hitting all-time highs. dollar general up 2% today

now to sue herera for a news update >> hello, everyone here's what's happening at this hour the man who authorities say claim to be an illinois boy who disappeared eight year s ago w charged with making false statements he had twice before made similar claims in which he portrayed himself. he claimed to be timmothy pitzen who appeardisappeared in 2011. first degree murder for the mass shooting in parkland high school in parkland, florida, in 2018 his lawyer withdrawing a request to keep him out of court his trial is set to start early next year. an elementary school in north philadelphia was placed on lock down this morning after reports of a gun on the grounds. it was determined that there was no threat when a student was found to be carrying a plastic toy gun.

and cath a kathy lee giffors signed off complete with laughs, some tears and, of course, a bit of champagne. he will be succeeded be jenna bush hager we wish both ladies the very best of luck that's the news update this hour kelly, i'll send it back to you. >> a lot of fun to watch sue, thanks. 30 minutes until "power lunch" and i'm joined by melissa lee and we were talking about housing. >> a lot of people are looking at rates these days and overall even though we've seen a rise in the 2s and the 10s and today's session on the back of the job's report, rates are still very low. people like you, kelly, hate debt is that right? >> very little debt. >> so, if you don't like debt but you want a home equity loan, what can you do? well, there is a company right now who is going to give you money back on the equity you have in a home and the way they do that, basically selling contracts on that home equity to

an investor. they already secured $100 million. they sold $100 million in home equity contracts to an investor. and, so, you as the homeowner can take advantage of that equity in your house without putting on more debt we'll have all the details ahead on -- i know that a lot of people are going to be -- >> i'm a little weary, but it sounds fascinating >> what can this do to the banks? >> i will keep an open mind. >> at least until 2:40 or so >> melissa, we'll see you then here's what's ahead on "the exchange." coming up, lyft gets a lift. is google losing its tight grip on advertising is there a new streaming king? and adidas puts a ring on beyon beyonce. leaving underarmour at the alttal alter. it's all ahead

welcome back things are already under way here let's catch you up on a few stories that should be on your radar. time for rapid fire. here is bill griffeth, morgan and bill

welcome, everyone. take a look at shares of lyft trading back above their ipo price. price was $72 and may be back above the key number and highs of $78 a share also, still one of the most expensive stocks to short. full hope for investors with the rebound. what do we think >> wonder if the founders have regretted it yet ipo regret yet with all the scrutiny and the, you know -- >> facebook had the same thing and look where they are now. they jumped 50% the first six months and no one remembers that now. everyone at the time, what a n disaster, they couldn't do anything >> remember when the ceo. >> ipo was $72 and once it started trading, as you mentioned, the high was $88. that first day of trading if you were a retail investor, you're still upside down on those shares right now so, i think that is probably the folks that are maybe currently feeling the pain here.

>> and wait until uber comes out. >> yes >> that is only going to get more fun >> levi, those were names that popped on the open and held it lyft is the exception not the rule don't short the stock. >> they say it's not a fad it's not go-pro like a real shift in the economy with ride sharing. >> they just have to make money somehow. >> money is secondary. >> pricing wars. >> up next, amazon is taking a bite out of google's ad to search dominance the world's largest ad buyer spent $00 million on amazon ads last year and this is the key part 75% of the money that wpp spent on amazon came from google search budgets. >> this is the year, i was reading, that digital ads are expected to succeed traditional advertising. this is the year and amazon is a real comer in this category right now and i'll tell you why the people that go to amazon are in a buying mood to begin with

so, you know, you're already set up there to be, when you put an ad there google and some of the other, facebook, i'm not there to buy anything for pete's sake instagram. only dom chu shops instagram. >> i have bought stuff and i haven't been happy with it pinterest opens up its marketplace for more purchases online advertising dollars it's been facebook and google and amazon has been pulling up and taking over more and more market share. so, notable. maybe really positive development because it adds more competition to the marketplace, but, again, amazon one of the other big tech companies is debating is too big. >> people yueople used to googl search and click on amazon and now people just go to amazon

before you had to go to google to search amazon and now you can just search directly what is interesting when i talked to sports executives. they have amazon prime and they have sports broadcasts on there. because they are a paid by month model unlike a facebook or google, they could replicate themselves as a cable company because we can take a monthly fee from subscribers you can see the value of their ads could apply in their shows, as well. you want to come advertise on amazon, we also have tv. >> this is what i do i go to amazon when i want to buy something. but, next, beyonce is signing what she calls the partnership of a lifetime with adidas she'll be a creator partner at the shoe brand and plans to expand her active wear brand through the company, as well asked kevin about this earler e the under armour ceo, look, we don't have unlimited funds under armour is saying we want

to get apparel performance right and we can't chase these big dollar contracts all the time. >> a thought bubble above his head when he said he would have signed beyonce in a minute >> her husband has done shoe deals before in 2003 jay-z had a shoe out from reebok and part of their plan in 2003, hey, jay-z is doing reebok, you want to be part of reebok and now creative director at puma within their own house they're competing shoe companies >> think rihanna and how successful she's been with her brands >> yes you have seen some reports in the last couple days that perhaps some of these other companies like reebok or under n signing beyonce. athleisure companies and not just about let me wear your clothes and be your sponsor it's let me be your partner it's a much bigger, broader

business deal that didn't exist years ago. >> they might be getting cash or equity. apple music has overtaken spotify and paid u.s. subscribers. "wall street journal" said they had 20 million paid and spotify is still bigger worldwide. they have almost double the numbers that apple music has but, still -- >> call elizabeth warren, break up apple using their hardware/software combination. >> what is the difference between apple music and spotify or even amazon music >> different icon. >> but you're exactly right. this is the problem. >> do you switch between servicservic s because you want to hear a particular artist? >> same price, same music. >> i listen to music when i'm cooking in the evening and i ask alexa to play twisted sister and it has 100 million subscribers because that's how many prime

subscribers they have. >> remember taylor swift got all upset when apple music launched. nobody cares, nobody remembers it's all the same. >> i think they're all the same. i know i'm missing something. >> because they're all the same because you have to have it all to compete that's why spotify is going to podcasts because it wants to sign up the podcast exclusively so at least it has some exclusive content that can drive people to the platform because these products are not differentiated >> absolutely 100% that is the case i also think if you're somebody bullish on apple and maybe after what was considered a lackluster services announcement last week, you look at something like the fact that they are growing in apple music and you say, okay, maybe second to this market and third to this market and maybe they're behind the ball, but don't count them out finally, sometimes david gets crushed by goliath and sometimes he stands over and just taunts. the alliance of american football suspended all

operations with people out there saying, we told you so football ends after the super bowl and then there's the epic failure of basketball's big baller brands. alonzo ball walking away from the company his family started even getting his tattoo removed, eric why is it so a hard for upstarts to play in this game >> because so much money in the established people and all these fans and critics they want to say, oh, look at the nfl business model and look how nike does and then whenever an upstart comes, they fail think of how many football leagues have failed and the big baller brand turned out to be a mess with fraud and suing the co-founder and suing his agent and covered up his tattoo and even the aaf that had big names behind it, they didn't get the $70,000 they were promised the first year they lasted saeb weeks on week two they had to get a new buyer. >> they still have the listings.

>> air a aaf game ahead of the in toal four and aaf memphis and san antonio and they changed it today to some reruns >> trend carefully. >> any start up that wants to take on google and amazon. >> the demand needs to be there for it to be a success you can't just create something out of thin air and expect it to grow simply because there is already an established nfl out there that is going to, you know, be a competitor. can't be done. >> which is why esports looks so promising. >> can't leave it on that note thank you, all appreciate it. coming up, could a trade war lead to a real one one of my next guests says there are some eerie parallels between now and 1914 now and 1914 he explains why ahead.. like be. hmmmm. ♪ rub-a-dub ducky... and then...there's national car rental.

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president trump saying today trade talks with china are

moving along very well, but he won't predict a deal this isn't the only battle on the trade front right now and nationalism appears to be on the rise across the globe. deals with this very topic arguing it could lead to world war iii. let's bring in the author behind the piece author of political politics and michelle cubrucea cabrera is also with us and, dan, what are the parallels you see from now and 100 years ago >> a couple parallels. the first is the spike in protectism we saw that in the decade or so prior to the start of world war one. you had countries that were very wary about it so they started raising tariffs across the board. you saw the creation of trade wars, in fact. austin and serbia had a trade war and germany and spain did. osttria and romania and german and russia interdependence collapsed, as well also a breakdown in central bank

cooperation, also, in terms of the gold standard. they didn't start the war, but they made the war a greater possibility that essentially the sort of major powers, particularly in eastern europe, russia weren't reliant on each other all that much. as a result, the idea of going to war didn't seem all that scary to them. and in some -- sorry, go ahead >> i was just thinking through this with michelle here is to say that we had these trade wars, michelle we had this nationalism movement and makes you think about the founding of the european union which was meant to be a way after world war ii to begin with a steel alliance and said, okay, we'll foster trade among these countries that will lead to political integration and an end to war is that what makes some of the trade issues today seem a little bit more alarming? >> the european project was absolutely about preventing a world war ii

i buy the premise generally showing how interconnected economic issues are to contemporary war as we've known it the premise being if there is a reduction in economic connect connectedness than a reduction in incentives to keep the peace and eleless resistance to going war. i buy that generally and that was the whole motive behind the european project i would say it's trade wars are necessary, but not sufficient to lead to full-on war. there are other requirements but, certainly, you wonder if it is a aforebowhat to come >> the conflict has broken out on the cyberfront. how serious is that? in a way, while we know it could have catastrophic results, no one seems to say cyberwar is the equivalent to all of had out war? >> if we're asking the question. can a trade war lead to a real physical war, what does physical war actually look like these

days and in the future military experts say it's a hybrid war boots on the ground but also a cyberwar we've been in a cyberwar the general media focuses very much on the cyberwar with russia, but the business community has long focused on the cyberissues with china and their theft of intellectual property both via computers, via the digital technology and also physical stealing of, you know, everything possible by sending in employees or fake employees, et cetera. >> like what happened at t-mobile >> dan, michelle mentioned this hybrid war concept because we're talking about it, i might as well ask how the nuclear age kind of hangs over all of this when you talk about a repeat or this leading to world war three, what kind of war are you talking about? >> well, i would rather not imagine that fully because it's a scary prospect one way in which the current moment is different from the previous one is the existence of nuclear deterrence which didn't

exist prior to world war one in terms of the evolution of nuclear doctrines the fact that you're seeing a break down in arms control between the united states and russia. the fact that you're seeing both sides talking about developing low yield nuclear weapons lowers the tabu against the use of nuclear weapons by both sides militaries on the cyberfront, one of the differences between now and 100 years ago which is scarier now the norm of what starts a war is different. back in those days, you know, countries declared war on each other and very explicit about it range of activities including cyberactivities, which don't seem exactly like the declaration of war but could potentially lead in that front furthermore, the other problem i think on the cyberfront is this perception of sort of winner take all the sort of fusing of national security concerns with economic concerns and i think the battle huawei and 5g >> interesting to think the flip

side of this, they don't want the loss of autonomy they are meant to prevent a conflict, but also feel like a little bit of a loss there, as well >> i think that's the germ of everything we're seeing in the world right now. >> yeah. >> a desire for definition >> well put. guys, thank you. michelle caruso-cabrera, can, appreciate your time the have and have nots of the ipo process. a look at the divide of two potential share holders and why it's not a level playing field when "the exchange" is back in two.

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that protects what's important. it handles everything, and reaches everywhere. this is beyond wifi, this is xfi. simple. easy. awesome. xfinity, the future of awesome. welcome back when it comes to ipos, not all investors are created equal. leslie picker is here with a look at the divide that exists between the two types of potential shareholders leslie >> reporter: hey, kelly. those two potential types of shareholders includes institutional investors and retail investors that divide, exists in every single ipo we see. retail investors don't get access to the most informed analysts they don't get access to management during the road show process and if they get an allocation of shareles in ts ino it's typically a small proportion weeks before the s1 is even

disclosed, the underwriting syndicate meet with the company going public and the meetings help the analysts map out projections for revenue and the forecasts are only shared with institutional investors until weeks after the ipo has already started trading. also, only institutions are invited to the road show meetings where they can ask questions of management, not even media are allowed in and in a hot deal, retailers usually are given no more than one tenth of the offering size meaning they may miss the upside with the first day pop kelly? >> i wonder if they'd expand the road show, let people do it publicly and the general public decide what a stroller recall that never happen ieds saying about the current consumer protection. the current co$4.95. protection. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade.

a cfp professional is trained, knowledgeable, and committed to financial planning in your best interest. find your certified financial planner™ professional at letsmakeaplan.org. welcome back a bombshell report from the "washington post" details how britax child safety refused to recall the jogging stroller despite reports of injuries to nearly 100 adults and children britax maintains they were safe when used properly but the report calls into question whether the consumer product

safety commission that settled a lawsuit against britax did enough to protect consumers and whether politics played a role in settling the case without a recall joining me, "washington post" todd frankel welcome. >> thank you >> i got one of these strollers last july, todd, so you can imagine, never was i so relieved that i never went for a run with it when i heard this was released >> me and my wife had one of these strollers as well, so i know where you're coming from on that these are strollers made before 2016, about half a million strollers out there, and as you know, sturdy strollers so there's quite a resell market. plenty of these still out there. the front wheel would come off while people were jogging and what was interesting about after 2016, they redesigned it so it was harder for the wheel to come off. >> the wheel, so the company says, of course, we have statements from the company

saying they take safety seriously. they disagree with the way the article characterizes the stroller the decision was based on the fact the product is not defective. why was there never a recall >> the agency wanted a recall. the staff there, the people who investigate these issues they felt like there were enough injuries and there was a way to engineer out the problem there was a way to solve this problem. so they pressed for this and what the story describes is this was taking place as there was a change at the agency where it moved from a democratic commission to a republican dominated commission this changing out, there was different views on how regulation should be handled. >> amri burgle, is she the acting chair >> yes >> she became acting chairwoman after president trump was elected, right >> uh-huh. >> in the article, run me through the timeline here, once

she became acting chair, did she personally go to make this more of an issue? >> shortly after she took over in 2017 is when staff, the professional staff there made the determination that recall was needed and according to our sources, what happened was she pushed back on wanting a recall didn't feel like the company wanted it so was going to force it a different way of approaching regulations. some people believe you should get along with companies, work with them rather than taking this punitive approach later on, the agency decided to sue to force a recall and that was a decision made over objections of ann marie berkle they had to ask for a subpoena to ask questions of company executives at the stroller company. and ann marie berkle and another voted down that subpoena basically undercutting the case. >> in this case, it appears

there was a personal responsibility on her part according to your reporting with not issuing a recall and being more severe on britax. is this the only example you turned up? >> i mean, she has a different view of how the agency should be operated and she's been the lone vote in notable cases one involving a humidifier company making humidifiers prone to catching fire and knew were catching fire and the company, the agency wanted to penalize the company and others to make portable generators safer. a different approach to it no one thought she was ill willed or wanted to see people hurt but a different view of how the agency should be operated. >> you still comfortable using your stroller now, todd? >> our kids thankfully have

outgrown the stroller. >> i think consumers are more aware than ever about the need to see what model they have and pay attention to whether it's safe and using it properly thank you for the story, todd. appreciate you joining me. todd frankel an enterprise reporter for the "washington post." that does it for "the exchange." i'll join melissa in a moment for "power lunch" which begins right now. >> thanks, kelly see you in just a minute i'm melissa lee. here's what's new at 2:00. the president thundering away at the fed, going too far with criticism? crude oil keeps climbing could this be a threat to the economy or crucial for job creation take a check on shares of lyft back above its ipo prices. good sign for the rest of the unicorns or maybe just a head fake "power lunch" starts right now a check on the markets euphoria wearing off with the major averages higher across the board with the dow up 33 points.