>> ibm, if they don't do this quarter, i don't think they ever do it. so i like the space longer term. >> you own ibm >> yes >> and blackrock, we think the are well inside lalts ulateinsu. >> all right does it for us hi, everybody. here is what is ahead today. if the financials are proving anything this earnings season, it may be that stock picking pays off we'll dive into the active/passive debate with joel greenblatt plus leave big business alone. why one economist says these anti-american heros deserve way more respect than they get and let the battle begin, the high stakes trial between apple and qualcomm kicks off today we'll run through what you need to know. but we ginl with tbegin with ths doch doom.

and the red is not all that deep the dow off by just about 65 points s&p 500 off by about 7 nasdaq by about 35 as you take a look at one of the notable industry groups, it is chinese stocks specifically those with chinese internet exposure this is the csi china internet etf off by with about 3% one of the concerns is the trade situation with the u.s also index you issues and logistics to work through and construction of chinese stocks we'll watch those shares and stock of the day, slew of banks reporting this week. goldman sachs on this list because of the 60 some points in the dow, 50 of them are just goldman sachs. so goldman sachs coming in better than expected profits, sales a little worse than

expected but they did cut their compensation the whole pool is 20% lower than it was the same time last year back over to you welcome to "the exchange." i'm kelly evans. fed president evans for relation saying he would be happy to leave rates unchanged until the fall of 2020, this as gasoline prices continue to rise. national average jumping 30 cents in the past month. california now hitting an average of 4 bucks meantime tech etf on pace to close at an all-time high. bob pisani is at the new york for example. >> and it is a modest pause in what has been a pretty relent last rally leadership groups today all down still today's earnings beats by goldman, citigroup and charles

schwab support that earnings are beating by a ever wider margin than they usually do, that china's stimulus program is helping bottom out the economy and that the global central banks including the fed have pivoted the fed to support continuing low rates the big gripe on wall street is volume volatility and the lack of it. stock trading volumes are well below expectations many remain skeptical and are keeping the money out. of course if we hit new highs that will serve as an additional source of funding for the rally. >> good point. thanks so much earnings season is just getting under way. and so far it has been a stock picker's market. jpmorgan's results, wells, citi and goldman sachs all lower. does that undermine the case for passive investing? let's ask joel greenblatt, g

gotham asset management. so can stock picking still win welcome. >> thanks for having me. >> is it something about this year in particular where this old argument about sure you can pick stocks and still win or do you just think over time there is still a case to making alpha? >> sure, that is a great question to beat the market, you have to do something different than the market returns will zig and zag differently. i wrote that book in 2011 and i always say it is still a big secret because no one bought it, but between 2000 and 2010, i wrote up a study of the best performing mutual fund and it was up 18% a year the market was flat, but average investor managed to use 11% by moving in and out at all the wrong times they piled in after market went

in and they turned the gain into a loss so that is really the problem with active management almost those minority active managers, and there are some good withins out there, most people can't stay with them because they have to live with periods of underperformance. so there will always be periods of outperformance as well. there will be a minority of managers that beat the market. and some of those are actually good, meaning that they will beat the market over a long period of time but then the argument is it is tough to pick stocks yourself and most people don't have the skillset to pick good managers so it really doesn't come down to looking at the last one, three, five years because you are trying to go pig the numbwrr one. so give us one insight into your process 1y50i sxwrufb you. >> we're pretty cold and disciplined about how to invest.

i was teaching a class of ninth graders, most of the kids were from harlem, so really no background in investing and no money. and i was trying to explain the stock market so i brought in a big jar of belly beans and i explained to them -- i passed out 3 by 5 cards to all the kids and i asked them to count the rows and do whatever they wanted and tell me how much jelly beans were in the jar. i collected the cards. and then i went one by one around the room and i said how many jelly beans do you think are in the jar and i said you can keep your original guess, you can change it completely. and so i averaged all the results. results twhar tby far, 716. when i went around the room one by one, that guess was 850 and i explained to them that the stock market is actually the second guess because everyone knows what they

just saw on television and who they just talked to. and they are influenced by everyone around them when they are disciplined about counting, they did much better and that is what we are, we are a coldhearted jelly bean counters >> so you do have a couple picks here now having sort of laid out that background. one name that you think is attractive is booking holdings why? and is there something fundamental about this business that you think is misperceived or is the pricing simply off >> it usually has to be both you know, they have booking.com, priceline, kayak, open table so these are great businesses. you can get it at a 40%s can count discounts to the s&p it is growing faster than the s&p. and it is an asset light cash flow machine it is in a very good business.

they have been buying back massive amounts of stocks. so why so bottom line is people are worried about competitors coming in, you know, one of which could be google and another is airbnb. and those are reasonable concerns on the other hand, this is a network type of business where you are getting at 40% discounts to the s&p and it is a much better business. so if you buy a bucket of those, which is what we do, we'll be wrong on some of them, but if you take bets like this, where you have great businesses at cheap prices, big discounts and really, you know, hundreds of percent returns on capital with great network effects, it is a really good bet. >> by the way, when you spoke with leslie picker a couple months ago, you liked or owned boeing is that still the case given with obviously the crashes that they suffered?

>> with boeling, we're allocated about the same as the market everything can go well, but there are always bad things that happen, you know, randomly and it is unfortunate obviously with the accidents that happened in boeing. but that happens all the time. that is why we object hundreds of stocks on the long side we're trying to take good bets and boeing was a very reasonable bet to take. we were not overweighted, but of course that will al huways hurt you. >> and let's talk about one of the names that you are sort on maker of invisalign. do you think that valuation is out of whack >> it is trading at over 100 times free cash flow one of the highest valuations in the s&p, lot of their patents started coming off in 2017 there is a lot of competition coming into the business

so at 50% discounts to the cost of their stuff so really not a good -- i mean it is a great business, but there is not a good case at this valuation level to be excited about it it is actually pretty overpriced >> there is a way to play the markets no matter what people say on tv and everything else. joel, thanks so much appreciate your insight. joel greenblatt. speaking of boeing, two new blows for the company today with one airline extending it grounding of the 737 max even longer and the president also weighing in telling boeing to try a different strategy that was on twitter. let's get to all of it now with f phil lebeau. >> first off the tweet from the president essentially saying that it is his opinion that boeing should rebrand the 737 max. here is the tweet. what do i know about branding. maybe nothing. but i did become president if i were boeing, i would fix

the boeing 737 max, add some additional great features, and rebrand the plane with a new name no product has suffered like this one, but again, what the hell do i know and if you take a look at pictures of the 737 max from its first test flight over a year ago, actually going back to 2017, we should point out that boeing is in the final stages of finalizing its plan for fixing the max. when we say finalizing, keep in mind it is not expected to be filed with the faa maybe for perhaps a couple weeks up to three weeks. and that plan is the key to getting it recertified by the faa, many expect to happen this summer yesterday american airlines decided that it will be pulling the max from its schedule at least through august 19th. that comes out to 115 max flights a day, about 1.5% of american's schedule. and the focus now is on united of the three u.s. airlines that fly the max, southwest and

american have already pulled it from the schedule well into august the question is what does united do currently they are planning to fly it starting on may 31st, but that is likely going to change don't be surprised as the company gives its earnings that by then we get a statement from united about its plans and i reached out to boeing as did everybody else once the president sent the tweet out and we said what are your thoughts about potentially rebranding the max and they said we're simply focused to getting the max back in the air, getting it certified again, finalizing pilot training and materials and rebuilding trust with our airline customers and the traveling public so that is the key you have to rebuild the trust. because there are certainly going to be some people once the airlines start flying saying i'm not getting on that plane. >> and maybe it goes back to the name of it phil, thanks very much here is what is still ahead on

"the exchange. >> coming up, they may lack heroic attributes, but cooperations corporations deserve more respect, that is what one author argues he will join us. and with pinterest set for this week, we'll look at how it makes money. and apple versus qualcomm. billions of dollars in reputations are at stake as this high profile court battle gets under way. the details and what it means for investors. every day, visionaries are creating the future. so, every day, we put our latest technology and unrivaled network to work. the united states postal service makes more e-commerce deliveries to homes than anyone else in the country. e-commerce deliveries to homes

in the transportation industry without knowing firsthandness the unique challenges in that sector? coming out here, seeing the infrastructure firsthand, we can make better informed investment decisions. that's why i go beyond the numbers. i'm sue herera this is the new home of cnbc now under construction i'm stand management main studio

and although it is hard to imagine right now, it is end up looking like this. i will be working at the main anchor desk, sitting about here where the chair is we're building more than just a studio, this is

big banks are under attack but a new book says that the problem is not that they are bad, but rather that we don't love businesses enough let's bring in tyler cohen, he is the author of "big business." welcome. and you have probably the most well read econ blog, you are very busy. thank you for joining me here. and first of all, you're asking for punishment if you write a book like this today tell us what spurred it for you. >> we're in an age where both

the left wing and right wing thinkers villa niz big business. trump attacks businesspeople on to wit, left wing wants to split up large corporations, everywhere we are blaming big biz. >> so you have a you couple fun observations where you talk about business makes all the things that we need and enjoy, they provide our paychecks in fact in some ways they have helped america become socially inclusive. you point to some that moved first to recogni same sex partnership. why do you think the reputation is so bad? >> i think we're in an era where people are losing trust in just about everything including organized religion and also congress and business is getting a lot of the onslaught. but american business is some of the best in the world. we have the most productive managers, we're the most innovative country in the world. so i thought we needed a book like this one.

>> over the weekend, "new york times" magazine had an issue about climate change in which they kind of excoriate corporations saying they behave like psychopaths and that coercion must be trecommenddy. the argument is about stopping the burning of greenhouse gases. what does tyler cohen say this for people concerned about this problem? >> climate change is a very real problem. we will need a lot more innovation probably most of that innovation will come from business. and business would be -- or should be a partner in solving that problem if we vilify big business, all that becomes harder to accomplish >> you saw the "green new deal." why do we have to use the business system and why can't we just impose it from the top down and say exactly how to solve the problem? >> innovation usually comes from decentralized forces competing against each other to do things in new ways. the "green new deal" is a big mess combined actually with a

fair amount of socialism of the government should give everyone a job. that has nothing to do with fixing the carbon emissions problem. it is a political excuse we need to focus on actually making american science better >> you defend big tech among other things and say that facebook for example has a lot to offer society these things sometimes seem like they are stating the obvious, but what about monopolies, what about all the laundry list of things that people throw corporations for being bad actors >> they have strong positions because they produce the best services you don't have to pay anything for doing a google search. so google has your data. that in turn allows people to target you with advertisements for things that you might want if you don't like the deal, you don't have to use google it seems that these are miraculous developments which now we are turning on because somehow they are not perfect >> how has the feedback been

>> a lot of people complaining amazon did this wrong, facebook has this problem but look at the overall cost benefit ben benefit ledger >> all right tyler, thank you very much appreciate it. coming up, what amazon is speaking of which just did that is sending spotify shares sharply lower. plus it is the biggest comeback story in the history of golf a look at what tigger's wer's ws for the sport and its sponsors what's a target date fund?

529 plan? a 10-k? what's an etf? an ipo? 401(k)? where do i start? empower yourself with the free tools and resources on investor.gov. before you invest, investor.gov.

welcome back here are some of the movers. citigroup reported mixed results. earnings were boosted by share boou ba buy backs, are you r but revenu. shares are down fractionally and pot stocks are getting hit pretty hard after one of the largest cannabis companies reported earnings shy of estimates. the disappointment sending shares down 13%. spotify is also falling more than 4% after a report that amazon plans to launch an ad supported music streaming service that would rival it. the service could be available as early as this week and would work through echo devices. and now a cnbc news update here is what is happening.

attorney general william barr plans to release redacted version of robert mueller's report on thursday morning that is according to the justice department it did not provide a precise time, but said that it will be released to both congress and the public ivanka trump is meeting with representatives of africa women and ethiopia's president on her four day tour to promote a u.s. initiative aimed at encouraging women's employment in developing countries. >> 18 countries in the world still have allows that allow husbands to legally prevent their wives from working, and a half of these countries are in africa we can and we must address these barriers to women's equality and country's prosperity >> the world health organization says the number of measles cases worldwide nearly quadrupled in the first quarter of 2019 to more than 112,000. higher rates of the disease have been reported in all regions

the agency is appealing for better vaccination coverage. you are up-to-date kelly, back to you >> i'm thinking of getting the little guy vaccinated early. >> some people are actually doing that as soon as the pediatrician says that he or she is okay to do it because it is just so rampant especially in our neck of the woods. >> i guess they say wait until 15 nts months, but -- sue, thans i'm here with tyler mathison >> i'm so old that i had the measles when i was a boy and it made me very sick >> doesn't that mean you're immune now >> i'm immune now. >> and when i was born, we only got one round, so they say maybe should you get two and on "power lunch," did you hear tiger woods won >> i saw it. it ended so early. >> yeah, they were afraid that thunderstorms would come through and disrupt the finish of the

tournament we'll talk to the head of bridgestone golf they make tiger woods golf balls. and it has been a very successful thing they invested in tiger when tiger was really at the trough of his recovery from back ailments and personal issues his ranking at the time in the 1 100s, now he is number 6 in the world. he's had some good finishes. so we'll look at the business of tiger. it is doing very nicely. >> if brooks koepka had made that putt -- >> it would have been even i think tiger would have played that hole maybe a little differently, but he played it smart and had a cushion. >> tyler, we'll see you soon here is what is ahead -- >> up next, tiger's green jacket win could mean big green for some brands. the street falls in love with one retailer winter came early for direct tv

customers. and lyft's new low that is ahead inap fe. ridir obvious. sometimes, they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group - how the world advances.

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welcome back we have a developing situation in paris notre dame cathedral in the heart of paris is on fire. there has been construction going on at the particular area. this is a still shot that we have you can see that the tall entire and pa spire and part of the roof is on fire keep in mind this is one of the busiest seasons for notre dame because we just had palm sunday. easter is coming up this sunday. so a lot of tourists they have cleared that particular area and firefighters are on the scene they are calling it a major operation. but as you can see, part of the roof is on fire, it looks like part of the spire is on fire we're working to get video into our newsroom construction on this cathedral began in 1163. some 12 million visitors each

year visit that cathedral. it is the most visited monument in paris so we'll keep you posted we're getting video in shortly and we'll bring to you >> sue, thank you very much. tragic i went to mass there is a couple years ago when i was working in london, we had traveled to paris. and you just hope it wasn't arson. it is just an awful, awful story. >> as a catholic, for me it is always -- i've been there before attended a service there before. and it is always tough it see. you hope everybody is safe >> and we'll obviously keep everybody updated. we are here for rapid fire many, many stories on your radar today. kate rogers, dominic chu and contessa brewer, welcome let's talk about lyft shares which just continue to struggle since their ipo hitting another all time low in the $55 range, a 40% drop from the opening trade. all this as the company says that it is pulling 3,000

electric bikes from three major cities after riders reported issues with the brakes and you saw some of these firsthand. >> yeah, out in l.a. i saw a lot of the jump electric bikes which are owned by uber. when you bring the new forms of transportation into city, you need everybody to be safe. people were saying that there was stronger than expected braking with the front wheels so they want to make sure that nobody gets hurt and so they took these off the road and replacing them with regular bikes for the time being but you just mentioned lyft shares down when 33% or so from their debut. >> do you think this is related? because we know that the electric scooters have been growing quickly. and our producer a.j., his sister store up her knee from one of these same problems on one of these >> it just seems like they are on a downward trajectory and there is so much excitement to uber and what they bring to the table. and uber has been in this game as well and they have two

different bike sharing and bike and scooter sharing platforms. it feels like there is going to be a grab for market share here and because lyft came out early, it will have to take a back seat so to speak to uber and where they are going >> and we've spoken about this idea that there is a trading dynamic developing between lyft and some of these other companies that are associated with the uber ipo only because it is a way to krublgt a structured trading strategy around what you would do with uber >> so sympathetically trading? >> and if it is a case where they can then cover it by buying it post ipo, there is a lot going on with how lyft shares are trading. so scooters could be a person part of it, but certainly the idea that uber plays in to that dynamic. >> and meanwhile levi's has everyone bullish on the company today.

they say levi's has the highest bland awareness in denim bottoms. and setting up to the ultimate brand stock and also a cash cow. >> i feel like everywhere i look on millennials it is levy's, levy have but the generation coming up next, levy's wasn't a top brand with that generation so interesting who they are going after. obviously the men's category is huge i think they need to push more into women's >> they have put hayley baldwin as the face of 501 and she is very young and -- >> on fleet. contessa said so >> and you have to remember there will be a big bust toward china because they know that that is where the market can expand, they can grow the brand. and the ceo says china will be

big for them >> talk about a big story. did you hear what the price targets were anywhere from $26 to $29 a share. so 13% up side i mean this is a consensus trade right now and a company that has only existed publicly this time around for a few weeks >> who would have thought in january levi would be taking off and lyft juggling. and according to apex marketing during the final round tell geca telecast, tiger generated more than $23 million in exposure and also by the way an $85,000 bet on woods to win at 14:1 odds >> and so that means by the way that tiger was the third favorite to win the masters even

before this thing started. the only guys who had higher odds or better odds of winning were rory mcilroy at 8:1 and dustin johnson at 13:1 so this is a big deal. but more importantly, if this grows the pie for the game of golf, that is huge >> and remember for the pga, they are very into who is coming into be a sponsor of these tournaments. once you start growing that tiger excitement again, you bring in the sponsor to the tournaments too. >> and on the casino, i know there was some good pexposure, o many people bet on him, it would have been much worse if it were someone -- odds would have been longer in other words. >> the three sports books that lost in the seven figures because tiger won said this is the price of doing business and we have so much hone coming in right now, it is just not a problem. bay the w b by the way in february they put

out the odds of tiger winning 4 majors, 500:1. a lot better now >> one quarter way there. >> he made about a million dollars from sponsors last year fall from grace obviously, so what comes downs line. >> i thought the same thing. now they will be raking it in. finally let's talk about "game of thrones." on direct tv, they accidentally released the seasoning opener -- >> it happened again >> okay. clearly you know more about this than i do. it was four hours early. >> this is the first time we've had a direct tv/at&t snafu >> and it was like hey, we're excited too, and by the way. remember dish tv lost it entirely and said get a separate stand alone subscription as to hbo and we'll give you a

tutorial about how to sign up if you don't leave us for direct tv could it be that direct tv is just playing up that they have hbo? they say there was a glitch, but it wasn't really -- >> did you watch it? >> i'm always reminded like i'm the only person that doesn't watch this show. >> i'm with you. i pulled the early morning shift as many viewers know, so i was up at 2:00 a.m i stayed up to watch it because i wanted to be sure that i was prepared for any conversation it happen today >> after this show, what is left >>wone wonder what is next for hbo too all right. thank you very much. you didn't say >> i do watch "game of thrones," but i didn't watch the premiere because i want to binge watch it all the once >> so don't it he wiehe wi tell. >> winter is here.

>> i don't even know what that means. coming up, the pinterest ipo is on dk.ec how does the company make money? we have answers next your joints. or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally discovered in jellyfish, prevagen has been shown in clinical trials to improve short-term memory. prevagen. healthier brain. better life.

welcome back breaking news out of paris, we now have this is live footage and coverage from bfm television the roof of notre dame cathedral is engulfed in flames, including the is spire the cathedral has been undergoing a made massive amount of construction work and we do know that the firefighters are considering it an accident. possibly from construction that has been going on. much of the cathedral roof is in scaffolding that the poiat this point. we should note a lot of the statues were removed just last week so they are off site

that may be one sliver of good news but they are working actively to try to contain this fire the mayor of paris, deputy mayor of paris, emanuel gregory on twitter confirmed the blaze. he is urging residents in that particular neighborhood around notre dame to evacuate we do know that this cathedral is a medieval cathedral, the most visited landmark in france. this is holy week, so an enormous amount of tourists to be visiting. they have tried to move people back, but that is proving to be difficult because of all the traffic. they are trying to move the traffic to get all the fire trucks in. we have a number of different fire units responding to it. but what we can tell you right now, you can see from bfm television this is still a major fire that has engulfed parts of the roof of notre dame and the famed spire as well.

we'll continue to monitor the situation both from bfm and also taking a look at a.p. and reuters to get you the best coverage of this particular fire but right now, they are treating it as an accident. >> and it is on a little island. i'm sure that makes it a little more difficult >> yes, they are having trouble getting people to stay a were from the scene and people there had to get out too so it has been a very difficult situation. >> unbelievable. we'll continue to keep you posted and the president tweeting saying so horrible to watch the massive fire at notre dame cathedral. perhaps flying water tankers could be used. must act quickly principinterest is going puc what do they do? >> reporter: to find inspiration

for recipes from planning weddings to home remodeling, users save ideas by pinning them to their boards which can be shared with friends or with enon the platform so navigate, pinners can follow friends, influencers or brands or can search for ideas. all of their revenue comes from advertising. what the company called promoted pins bringing in more than $3 per user last year businesses can share images and links for free to their followers. or can pay to target users based on interests or key word searches, putting their promoted pins on to user's home screens or into search results pinterest also enables brands to share video and shopping ads and while pinterest doesn't take a cut of the sales, the more its ads drive purchases, the more brands want to be on the platform >> and julia boewel julia, thiss

down to advertising. >> gentlemeyes, and it works be they drive their pinners to click to buy things. they are trying to encourage advertisers in the entertainment space, in travel, even in financial services to come more on to the plat for and use it as a way to reach that demographic. mostly women that use it who are obviously very valuable to advertiser >>'t even take a cut. we'll talk more about this the valuation whether cheap or expensive, the business model questions. >> so that is the question investors are asking as they decide whether to buy shares in the site to answer that question, investors are comparing the multiples for comparable publicly traded companies. these fall into two baskets.

the first is ad based models because pinterest derives its revenue from advertising as julia said these trade around six times their projected 2020 revenue the second basket is e-commerce because pinterest enables users to buy things on its platform, these businesses trade closer to four times on average. when compared with both baskets, valuation actually looks more expensive, around eight times projected revenue. this might be surprising to some because since the i aboutmentip is cheaper than the $12 billion it was valued at during 2017 during the last private funding round. >> so search, 6 x. e-commerce, 6 x, pinterest 8 x all i need to know pin it right here. >> it is a pricey pin, we'll put it that way, but the revenue growth is substantial. so investors do tend to pay a

premium. >> leslie, thanks so much. coming up, two of the biggest players in the smartphone industry are facing off in federal court and trehe is a lot at stake. those details ahead. was ahead of its time.

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and the and qualcomm are facing off today with billions josh lipton is live outside the courthouse with the very latest. have we heard from mr. cook yet, josh >> reporter: no, but there are some big star witnesses who are expected to testify, kelly as you said, we are right outside of the san diego courthouse where apple and qualcomm are going head to head. in this case, apple is claiming that qualcomm does monopolize modem chips, extracting what it calls as exorbitant royalties and qualcomm owes apple $1 billion but challenges qualcomm's patent royalty rate remember, qualcomm's business model here that it licenses its patents for royalty on the price of each phone. appearile saying that fee isn'ti with innovations it has nothing to do with it.

the manufacturersi seeking more than $30 billion in damages but saying apple built on the backs of qualcomm's innovation and trying to pay far less than fair value for that technology. jury selection began today this trial could last until may 15th kelly, back to you >> josh, thanks very much. let's bring in steve kobach. here's my thing. i understand that apple is upset over this, but didn't they agree contractually to this arrangement and is there any, can they make a case for qualcomm's behaviors violating that agreement >> what they're doing is tim cook has said that this whole thing is just against the whole principles he believes in.

>> they're really taking a stand. that's why you saw them go towards intel. that's kind of shooting themselves in the foot here. this whole spat is causing them to use intel modems instead of qualcomm they have 5g chips in phones right now ready to ship and the iphone is not going to have that this year and on paper, it makes the iphone look behind competitors. >> this has been going on for years, if apple was unable to. >> now thaifr they'ey're going a office and qualcomm's backyard in san diego where they're going to start building their own modems to get rid of both of these third parties so they don't have to rely on anyone else >> i can understand that, but in the meantime, this is the arrangement they have. we'll see what comes out in court for sure thank you very much forjoining us steve kovach >> thanks.

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this is where i trade and manage my portfolio. since i added futures, i have access to the oil markets. and gold markets. ok. i'm plugged into equities. trade confirmed. and i have global access 24/7. meaning, i can do what i need to do. then i can focus on what i want to do. visit your online broker today, to learn more. welcome back everyone. i'm sue herera you're taking a look there at

live television coverage from bfm television in paris. as you can see, notre dame cathedral, the roof is on fire that fire has spread to the spire that is completely engulfed the cathedral undergoing a $12.5 million renovation financed by the french state they are speculating the result of the fire may be because of construction it's been undergoing construction for some time now most of the roof is in scaffolding. french president macron saying this is a disaster he has cancelled his plans to address the nation tonight and i'll send it back to you, kelly. we're monitoring the situation >> sue, just watching these images for a moment because apparently this fire has collapsed. >> actually, that was on twitter, but we haven't confirmed that because if you look at the left, that's the spire. >> exactly >> so this is completely engulfed but depending what news

service you watch, aptm, you can't see the spire butyou can from bfm we are monitoring that because it is all over twitter. >> got it. that's what you're here for, sue, thank you very much >> got it. in the meantime, the american legislative with the rich states poor states. competitiveness and policies like tax rates and regulation. the first report since the 2017 tax cut and jobs act which overhauled the tax code for virtually all americans and had a big impact across the state. joining me now, jonathan williams it's good to have you here, welcome. >> thanks for having me. >> utah, top of the list idaho, north dakota, nevada. what did they have in common >> they value competitiveness and freedom oriented outlook to keep businesses low and tax rates low and some of the fastest growing states in america when you look at when americans vote with their feet, very strongly to states like those states that keep taxes low

and overall business costs in check. >> the worst states are some of our neighbors. new jersey here, new york, california, illinois and vermont rounds things out but i thought vermont made progress and basically paying people to come. >> actually, vermont was one of the states that did cut rates after the federal tax cuts and jobs act, cut income tax rates down there you go states across the board using federal tax reform to cut their own tax rates, bernie sanders in vermont but the states in the bottom of the pile, no surprise to viewers, those are states hemorrhaging jobs and americans. new york alone is down 1.3 million americans on net over the last ten years as people vote with their feet to other states with more economic opportunity. >> your three main criteria are state gdp, non-farm payroll gains and a dozen or so more factors than that. even though states like new york rank near the bottom, jonathan, they still have a high concentration of gdp and new york city is a unique asset.

does that still outweigh the attractiveness of structurally lower cost states? >> well, certainly i mean, if it wasn't for new york having manhattan, having wall street hub there, think about how bad the state would be overall. outside of manhattan, look at upstate southern tier, places that are hemorrhaging jobs i individuals so while silicon valley may keep california somewhat afloat and then manhattan keeps new york afloat. see what's happening in the outstate regions and how are the state's policies driving people and businesses away. >> quickly, what was the biggest surprise here for you? >> i think really, just how federal tax reform has set off this new wave of tax cutting across the states. like we predicted, ronald reagan cut taxes in 1986. we saw the same phenomenon happen and we're seeing this gulf widen between rich and poor states so it's a competitive federalism across these laboratories of democracy we have. i think it's a healthy thing. >> thank you for joining me. good to hear from this new

jersey, maybe not so much. jonathan williams is with alec that does it for "the exchange" everyone thank you for joining me i'll join tyler in a moment for "power lunch" which begins right now. >> kelly, thank you very much. we will see you in just a moment welcome, everybody i'm tyler mathisen and new at 2:00 today, the president keeps hammering away at the fed and now, there are new warnings about the impact this constant pounding may be having chip stocks on a tear up 30% so far this year but is there a lurking fear factor that could stop the chip charge and speaking of charge, tiger woods historic charge at the masters. we'll talk to one company that's been cashing in. "power lunch" starts right now let's bring you up to date on how the markets are doing right now and lower across the board as you see right there the dow industrials down about 21 points.