a trial going on with apple that just started in san diego. this is a big one and will take a few weeks to settle out. >> sarat >> jpmorgan leading the financials. >> that does it for us "the exchange" with tyler mathisen begins now. good afternoon, everyone thank you, scott welco welcome. i'm tyler mathisen in today. here is what is ahead. stocks are within striking distance of all-time highs what will it take to take us there and are there still values amid this rally? and netflix is on the clock reporting results. will disney and apple's new streaming services make it harder for netflix to stay king of the castle? and could your old nike and puma sneakers be a source of hidden billions we will explain in rapid fire, but we begin with today's market and dom chu with the numbers

>> these shoes were make for walking and walking closer and closer to a record because, like you said, about less than a percent or so away from record highs and many of the major u.s. indic indices. the dow up 45 points and remember at the highs up 145 points at the lows up just about 13 points on the day. the s&p up by 0.1% if you're looking for a bright spot, look at technologies specifically computer chip stocks this particular etf is up 1.5% that means it is at a record high the last time we got there, march 13th of last year. so, smh that semi conductor trade big and hot right now. if you're looking for the worst performing stocks in the s&p 3500 today, check out international paper, packaging corp of america. these are corrugated companies and they're bad because industry data show this morning inventory

builds and the subject of either price downgrades or downgrades outright by bank of america. tyler, bad ones. back over to you. >> dom, thank you very much. volatility is falling toda . down more than 50% so far this year treasuries also on the move. the ten-year yield since late march of this year positive data on the economic front. home builder confidence rising in april the third increase in four months for that measure. let's drill down a little bit on the markets with bob pisani at the new york stock exchange. what can we gleam from the earnings we've seen so far >> good news and bad news on the earnings front the companies are continuing to report earnings that are way above expectations look at the companies reporting today. comerica, blackrock, bank of america, unitedhealth. 3% is typical.

what happened is analysts fear the global economic slowdown in 2019 they dramatically cut and now it's obvious the analysts have cut way too much here's the bad news. very large discrepancy between earnings and revenues. this is unusual. the sign the cost pressures are starting to show up in the system earnings expected to be down almost 2% this quarter and revenues up 5% what is that all about companies that have been reported have been citing unfavorable exchanges and many now reporting issues with higher wage and labor costs and higher raw material cost and with higher transport costs we saw this particularly with jb hunt, one of the big trucking logestic companies and you see them down 4% back to you. >> robert, thank you very much as the markets inch closer to all-time highs, are there still values left for investors and any potential threats to the rally? let's bring in jeff, chief

investment strategist and chetten, chief global economist at morgan stanley. gentlemen, welcome to both of you. you said at the beginning of the year you saw a 75% chance that s&p would trade in the range of 2800 to 300. you must feel good about that, we are at 2900 right now only 100 points left on your prediction so, is it over >> you know, we actually established those targets back in december when everybody thought we were headed to recession and worse. >> zero. >> yes, exactly. blood pressure relieved a little bit. at this point i would say the bias is maybe to take that up to higher levels. if i would have said, you know, above 3,000 back then, i think they would have burned my house down people were so grumpy. we think the backdrop is favorable. >> instead of 3,000 potentially, where do we go potentially

>> i think 3,000 if you put a normal handle of 16, 16.5, 17 times on 7% growth in earnings over the, you know, 2019/'20 time frame it gets you from that 3000 and low inflationary environment you could go to 3100, 3200 comfortably, i would think. but it's really about trend, power. get the trend. i would say we're still there. >> what do you see in the economy that either hardens you or worries you >> we think it will recover. we see recovering from 3.1 to 3.2 which is going back to trend. we think it is the easing trial which is going to help which is essentially trade tensions easing we have china policies and we have policy approach so, these three factors we think will drive that global economy

these were the three problems that we were facing in the fourth quarter of last year. and we have the three factors will actually support this recovery we think that this will be driven more than the u.s the recovery in the rest of the world is going to be even more prominent. go from 3.3 to 3.9 that's a meaningful rebound that you should see in the global growth in past >> so, you see a change in the trade outlook as critical to that that means europe, i assume, and china. >> yeah. it's essentially being from a demand perspective be driven by china, but from a policy perspective, it is the u.s. and china trade tensions that are critical component of their story. we think that in china's case, it's not just tension easing that will help its recovery, but what has been laid out by the government so far seems quite sizable. 1.75% of gdp or call it $250

billion. we think that's a sizable event that will help recovery in china. we should get that data tomorrow and the company's recovery is taking hold in the month of march itself >> that is a good point to remember jeff, you know, it seems to me that maybe some of your sector picks have gotten a little more comfortable or comfortably aggressive not consumer staples now consumer discretionary not so much defensive, more into cyclicals. tell me about that >> that is what we were building at the end of the year people got overly pessimistic and i agree with these trends. a lift through global growth in china which could pull europe forward and then continue strength really. the consumer is very strong in the u.s. so, the names that we were buying were things like trucking companies. and we held firm with the semis and adding to our semi conductor exposure leisure and entertainment and

there we just see continued strength and earnings strengths and good value >> give me names in consumer discretionary because they're interesting and little random. >> yeah, it's a random kind of area, actually very broad so lear is an auto supplier and people were grumpy and that is the first thing that was thrown in that penalty box if you're in auto so some cyclical pressure there. and a secular story. they're number two in seeding with 32% share higher component, higher content business and then it benefits from electroification and conductivity within autos and rising content and trading at seven times. >> in that group with lear you have las vegas sands, marriott and best buy chetan, back to you. i take it that you're less worried about europe and europe's growth than some people are because people are worried about germany an awful lot these

days >> yeah. so, for two reasons. one is actually domestic situation in europe is only looking better look at the pmi for services sector, it's already turned up we get a lot of other indicators which is showing the domestic component is looking better. they also have a fiscal stimulus under way. we think that is what is supporting the domestic demand and facing problems, especially in germany and because of china. but as i mentioned to you earlier, expecting a turn around in china and we have evidence in china, pmi turning up. china new orders component of pmi and showing orders started to pick up in china. so, usually it takes about three months for orders to pick up in china and show up in germany's data we think in a month, two month - time you'll see it improving and

broad based improvement in europe >> thank you very much we appreciate it jeff, great to have you in the house. >> thank you appreciate it. here's what else is ahead on "the exchange" today >> coming up, on the heals of disney's big streaming announcement, netflix gets set to report. what do investors want to hear forget lyft, uber and pinterest. one unicorn hitting the market that is profitable and doubling its revenue. plus, lots of outrage about facebook's privacy policy, but it's not translating into lots of selling from investors. > is"the exchange" on cnbc the latest innovation from xfinity

isn't just a store. 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. shares of netflix up more than 30% this year they are higher today ahead of earnings that come out after the bell subscriber growth, of course, one of the key numbers that investors will watch julia borsteen live in los angeles with why it is so important and what else wall street hopes to see. hello, julia >> 8.9 million is the number to watch. that's how many new paying subscribers netflix forecast to add this quarter 7.3 million of them are expected to come from overseas.

now, topping projections would indicate that netflix's investment in original content is paying off and subscribers don't mind the price increases netflix announce in january. a miss on the other hand would point to vulnerabilities coming from disney and other services also key, second quarter projections. analysts are looking for netflix to say they will add 5.5 million subscribers. investors looking for guidance on how it will impact subscriber growth and content growth. the majority of analysts are bullish projecting nearly 22% revenue growth and 10% decline in earnings per share from the year ago quarter guys, back over to you >> you'll stick around for a minute as we bring in cynthia, business editor over at variety to discuss the ways netflix may be tweaking its media strategy welcome and julia, welcome, again. what icomes to mind for me right

now what disney announces and apple, netflix, your move. ball in your court do you expect them to address that today or not? >> i suspect that netflix will, once again, try to announce their earnings from a strong position of strength they are widely projected to meet most analysts' expectations of subscriber growth i suspect that they will drop some et ratings tidbits and viewership information people are always so curious to know how netflix's content is performing last earnings we saw them drop some interesting statistics about their original movie "bird box" that got people talking i suspect we'll see some of that in a few hours >> julia, here comes disney at a lower price point as you just mentioned a second agoe. january netflix raised prices. what is netflix move here? >> well, i think netflix has

been investing so heavily in content. some $8 billion in content last year i think they're trying to be a very broad service a little something for everyone and also remember they have so much local language content for different markets all around the world. if you compare netflix to hulu who has 25 million subscribers hulu is just here in the u.s so, netflix is really global in its scope, not just in subscriber base but content. bob iger was very clear from the beginning that priced lower than netflix. what disney plus has is the premium brand where netflix has is so much content a little bit of something for everyone although going forward investing in getting those top content creators to see if they can create new franchises for netmrflix

>> since, julia, you mentioned hulu at&t decided to sell back to hul its stake in that property it would seem and this now gives disney basically two-thirds control of hulu. what is next for hulu and does disney then become by size and even more significant streaming competitor to netflix, if it ultimately takes it all over >> well, look, it seems like bob would like to buy out nbc universal which owns a third of hulu and has fun ownership and i think we'll learn a lot more about what will happen with hulu's full ownership in the next couple of months. but iger talked about who is going to be a key piece of this and considering they are offering a discounted bundle of hulu plus disney plus and espn plus although he's very careful to say they're not forcing a bundle on anyone with the idea that they're trying to move away from

the big tv that we're all so used to. yes, he would like to have all of it, but we'll see if nbc universal is willing to sell >> as you pointed out earlier, julia did, a lot of the subscriber growth that netflix is having is overseas. that's one thing the domestic growth is a little bit slower than it has been. but let's turn to this tidbit about netflix buying the egyptian theater in california which gives them a toe hold in the live event area which may sort of inoculate them against the criticism in hollywood circles that they really aren't movie producers because their movies don't show in theaters. now, they'll have a theater to show movies. >> right just as a purely practical matter for netflix which has been investingnoously in movie content feature length films having the egyptian theater in l.a. to qualify for an oscar, a movie has to run in

los angeles in a commercial theater for a minimum of seven days this in one fell swoop allows them to meet that requirement. >> so, hollywood presumably would be, i guess, happy that an iconic theater is getting refurbished and that, right, cynthia? >> well, it is an iconic theater and it is in need of some refurbishing, there's definitely that you know, as we saw during this last oscar race, there is still a little hesitation and a little bit of resistance. netflix is the new kid coming in to a business that has been operating in a certain way for about a century. it is, younow, it is truly the disrupter in every area that it enters >> julia is smiling and it seems like you want to say something go ahead >> well, tyler, just amazing you think about netflix which is the ultimate disrupter to hollywood to buy such an iconic theater. a theater that is known for showing old movies on film rather than digital projection

it would be such a statement in terms of them having really arrived in this industry and wanting to become part of the establishment. one of the lobbying organizations for the movie industry but it would be quite a statement if they bought that theater. both as a way to get around the rules and qualify for oscars, but also to show their part of it >> julia, thanks very much cynthia, thank you, as well. appreciate it. >> thank you >> you bet all right, coming up, a first on cnbc interview with the mercedes-benz usa ceo. tariffs, tesla and why the company thinks a luxury sedan is what people want plus, some of the world's richest men pledging hundreds of millions of dollars or euro to rebuild notre dame a closer look at who they are and how much money it could really cost and how long it hexcngke "t ehae" is back in two minutes.

♪ ♪ memories. what we deliver by delivering. that we're playing "four on four" with a barbershop quartet? [quartet singing] bum bum bum bum... pass the ball... pass the rock.. ...we're open just pass the ball! no, i can't believe how easy it was to save hundreds of dollars on my car insurance with geico. yea. [quartet singing] shoot the j! shoot, shoot, shoot the jaaaaaay... believe it! geico could save you fifteen percent or more on car insurance.

welcome back to "the exchange, everybody. electronic arts, jeffrey saying the next "star war" games look less profitable than the predecessor and on the ea hit game "a pex legends" is losing steam that stock down 23%. shares of blackrock up nearly 3% world's largest asset manager

reported larger first quarter and $6 trillion. and boston scientific down 4% after the fda ordered the company and other manufacturers to stop selling a specific kind of surgical mesh because of safety concerns. now to contessa brewer for a cnbc update. >> hi, tyler what is happening right now. artworks and treasurers evacuated during monday's fight will be transferred to the louvre the artworks include relics like christ's crown of thorns and french king century tunic. notre dame and all those affected by the fire, pope fran fran frances said he was shocked by the news of the fire >> frances expresses his sorrow and closeness to the people of paris, to the catholics of french and, first of all, with the spiritual proximity.

bill cosby says his insurance company is settling another accuser's lawsuit without his permission in a statement he accused american international group of egregious behaver i. he could have proven he was in new york during the alleged 2008 encounter with the 18-year-old at the playboy mansion that is the cnbc news update at this hour. i'll send it back to you, tyler. >> thank you very much. video conferencing start up zoom is one of the next tech unicorns to file for an ipo, but unlike so many of the other ones lately, it is actually profitable what a concept live in san francisco with more. hey, deidre. >> hey, tyler. not only profitable, but growing faster than the lyfts, ubers and pinterests of the world. investors are excited for this one. boosted from 33 to $35 a share

and give it a market cap of nearly $9 billion when it debuts this week. to put that in perspective its last private market valuation was just $1 billion. what is this if you're not familiar with it zoom is a video conference start up launched in 2012 and in the early days personally e-mailed every single customer who canceled the service now, came up in a very crowded market that include consumer names alike, cisco, microsoft, google, amazon and facebook. what zoom did better was this. a focus, easy to use service that was affordable and works seamlessly across devices. still competes in this competitive landscape but that's how it came to be against a lot of odds. >> thank you very much meantime, here is what is coming up on "the exchange." >> ahead, the big winner from the hot ipos maybe california. walmart gets into the subscription box service

tax extortions are on the rise and old sneakers pay off big. it's all coming up in "rapid fire." but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow.

all right. let's catch you up on a few stories that should be on your radar. time for "rapid fire." bill griffeth, courtney reagan be gentle with me, okay. take me through this here. the first topic, nbc is reporting that at one point facebook considered making deals with third-party developers to help find out how much the data on its users is actually worth there was no deal struck here. they were just kind of fishing, bill >> am i missing something or i find it difficult to get agitated about the data sharing. the whole thing. now, data security i could get agitated about if they're not doing enough to protect the data that they have on me there. but data sharing, if it's going to improve my experience on facebook or online, if it's going to help me as a consumer, if they can, you know, retailers can reach to me because they shared data with facebook. but don't lie to me about it it could be a pr problem

if you're doing it, have the courage of your convictions and admit that your data sharing or seeking to share data but don't lie about it >> that's what i think you could get agitated about facebook spending the last year and a half saying they care about your privacy and this really matters to them and then we get all these e-mails that are coming out saying -- i don't know, that's privacy, too. >> one thing to say we're going to use your entire life of data to get better ads to you another thing to say we're going to use all that data and think about what it could be worth to other app developers maybe just sell it >> make a profit off of you and your information. >> not only insulting, but against everything sheryl sanai. >> you are potentially lying about what you're doing with the data if you're doing it, just own up to it. if it's a good business position and helps me as a consumer, i'm for it >> wall street seems sort of

unphased stock chart over there >> not going to hurt their earnings >> i think more people are unphased about that data sharing. i think they might get angry if you're selling it and making a profit >> but why i don't understand. >> doesn't hit a fever pitch until you're starting to see the ramifications, okay, you sold my data how else did that hurt me? >> your advertiser and user where else do you go other than facebook >> huge wave of tech ipos that are exciting investors and the real beneficiary could be the state of california. robert, why would this be the case >> california not only has the highest rate, home to all of them so, you have over 180 or $200 billion in total market cap rushing through the system this year all those companies in california california has a 13.3% tax rate. that, by the way, applies to capital gains as well as income. >> right. >> so they estimate that you have $60 billion in wealth and

the founders and executives and people will cash in $8 billion in total potential revenue >> you know what i find inter t interesting there. everything you just said is an argument to leave silicon valley why wouldn't they flee to go to a lower tax rate state >> that'snetworks and the power of hub silicon valley just defies any kind of economist saying, look, an overtax, overregulated state and silicon valley thrives california has a $20 billion surplus this year. that is better than most state business >> you have to sell this stock >> exactly it could take a while. >> it could take a while before the state gets to benefit from it >> topic three walmart. one of the most high-profile big box retailer today thinking about little boxes a partnership with a subscription box company called

kid box that specializes in children's fashion what is this is this like hello fresh for outfits or what? >> somewhat similar. kid box is a company in which subscription boxes for kids' outfits. if you buy it from their platform, six to seven outfits and $98 for older kids with walmart they're say figure you go to walmart.com and get the kid box through us, about 50% off regular price and the outfits are going to be higher end brands potentially walmart wants to do this because if you're searching for kids clothes and you want the premium brands, they want you to stay on their site >> subscription? >> it is a subscription but you can opt in and out set it up to have six boxes a year >> what a great way to shop for back to school >> it's key for key seasons like back to school and christmas and different seasonal changes, as well >> so smart to go after the kids' market because money is no object when it comes to spending money on our pets and on our kids

>> and our kids. >> they outgrow so fast. >> walmart -- >> but so, let me ask you. do you pick the outfits? >> so kid box picks the outfit and you indicate your preferences whether it's a color, region, season, sizes and maybe you like buttons instead of zippers and then they suggest the outfits for you. they get sent in the mail and if you only like two of the items, you send back the other items or keep all of them >> target has found great success with cat & jack. >> its own brand. >> gap tried this, but it failed they stopped after a year. what happened? >> that's true we talked a lot about the subscription boxes and the hello fresh and the blue aprons and walmart tried it with the snack box with goodies it doesn't always work but in this case, pretty little risk for walmart just a partnership with kidbox they didn't buy kidbox >> on to the next.

the sneaker resale market could hit $6 billion by 2025 i'm not sure i understand this >> yeah. >> sneakers -- >> this is a black market now. this is the resale >> this is resale. >> how does it benefit adidas and those guys >> they make more custom sneakers they grow into the collector market >> yeah, exactly so, they can do more sort of premium one up customize this market now, the auction companies are getting to this because they're selling the sneakers for $50,000 or more this is a collectible asset class now. not just what you wear on your feet the producers know, just like car companies. you make a one up or two up. >> what does this remind you of? what word am i thinking about, tyler mathisen >> shoes, sneakers have become

the tulips out there right now i mean, this can't last forever. this is a mania. >> but footlocker has invested $100 million in one of these websites called goat and then the teen survey that they do biannually one of these other websites, ninth most popular website for males and 9% of th male teens are going to the secondary websites to research sneakers above the retailers' websites so brands, they go to nike first and then the secondary and then a retailer >> so, i like the gold shoes that dwyane wade wore last week in his last game i can get those and they might have collectible value >> you are buying tick toots the front row on the game he plays and then when the game is over he'll give you those shoes >> topic five. you probably have like me a suspicious call from a scammer saying you owe big bucks to the irs and you're not alone tax-related extortion schemes up

242% starts with a robo call telling the victim they owe back taxes a fraudster works to convince them to send the money they supposedly owe right now >> how much did you send them? >> i didn't send them anything i have been getting one saying there is a problem with your social security number call us immediately. >> the problem, all the articles say the reason this is happening more because of robo calls the reason this is happening more than this year and will happen in the coming weeks is because the new tax law is so complicated people think they did their taxes but could be something they missed. what these guys do is they say you filed your taxes wrong and you owe money. this new tax law is so many changes for so many people that it makes them more vulnerable to thinking maybe i still owe them money. the irs only communicates by mail >> you will never get a phone call from the irs or e-mail from the irs they only deal in snail

mail if you are getting a communication some time telling you that there is a problem with your tax return or social security number or anything on the phone. by the way, just don't even answer your phone. >> i don't you know, when you didn't give away my secret and that is i will see a mysterious number or an unknown caller number and i'll answer it and i will sit there and i will be silent. because the voice activation thing does not activate until you say something. so if nobody says hello, hello, i hang up. >> before robo callers when it was a person that would call my mother had a technique. she had a whistle standing by and if the person was immediately trying to sell her something she would blow that whistle. >> like seinfeld, not calling you back during dinner >> it's a bad number >> the last thing you want to do, call them back. >> don't answer the phone. >> how did we do >> good?

>> excellent >> thank you, guys come back any time this was fun i love this. all right, coming up, one part of the health care sector hitting 52-week lows today which one is it and why. which one is it and why. we'll tell you, next that's why i wear skechers slip-ons. they're effortless. just slip them right on and off. skechers slip-ons, with air-cooled memory foam. everything we have, we've earned. we got no free pass. the unmistakable lexus is. lease the 2019 is 300 for $329 a month for 36 months. experience amazing at your lexus dealer.

wenot the exception.sh food being the global norm, at emerson, when issues become inspiration, creating a better world isn't just a result, it's a responsibility. emerson. consider it solved. health insurancers who manage care providers under pressure with unitedhealth, cigna and humana hitting 52-week lows what a hat trick unitedhealth said that medicare for all would destabilize the nation's health system let's bring in anna gupta. anna, welcome. good to have you here. why all this anxiety all of a sudden over medicare for all something that seems like an extraordinary long shot that is in all likelihood a long way away from becoming an active

issue? >> i think it is about senator bernie sanders tweets, if you will and the proposal likely to get placed in his populous message and investors are just increasingly nervous that until you know who wins the democratic primary and then eventually what the outcome will been een on th 2020 election these stocks will not work they're looking for a catalyst, if you will, to come in and i don't think they're seeing one so, you're beginning to see long, dedicated investors showing nervousness and it's contributing to the selloff. >> so, why go there? why buy there? why own there if there is even the possibility of a tectonic kind of shift in the landscape, right? >> right i think that's what they're thinking you know, it's a matter of also your time horizon. so, if you agree that it's a

very, very low probability, these stocks are now, as you said, trading at a 52-week low and sold off about 20% the risk reward is very, very favorable. so, at some point value inesthaines investors will step in because the probability is at least, you know, 10-1 favorable risk reward here one potential catalyst, i think, and you know it remains to be seen if they can get this through legislatively speaking and investors will connect the dots, but it would be around this obama care tax. it's called a health insurer provider fee and there is a bipartisan proposal that is sitting on the table waiting for a legislative vehicle to let it pass through perhaps the debt ceiling bill. if you connect the dots, one could say why would congress pass a bill to delay a tax on a private medicare advantage program if they wanted to, you know, support medicare >> so, you know, what you just said about a 10-1 reward to risk

probability here, you've got outperforms on almost all of the stocks from anthem, cigna, cvs, humana and unh among them? >> yeah. anthem, united, in particular, and humana, they're not tied to any kind of deal risk or integration risk and considering where they have been trading you know, they have become very attractive in my view for value or even devalue investors. i think cvs and sigcigna the zoe to play in for value and devalue investors. at this point, i think you can get quality without a whole lot of downside risk if you just pick anthem, humana or united. >> anna, thank you for your help appreciate it. >> thank you, tyler. coming up, a first on cnbc interview with the mercedes-benz

ceo. how worried is he about the u.s. potentially imposing tariffs onner con cars from europe that is next but you're not mad, because you have e*trade, who's tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. don't get mad. get e*trade's simplified technical analysis.

internet that puts alright boys, time to eat. that handles anything. [ crowd cheering ] that protects what's important. and reaches everywhere. this is beyond wifi. this is xfi.

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, everybody, to "the exchange. the international auto show under way. our phil lebeau is there and joins us for a first on cnbc interview with mercedes-benz ceo dietmar exler. >> you're not the star attraction, it's the star attraction behind you. tell us about the amg format we're seeing for the first time here >> well, thanks for having me, phil, first of all and, of course, the cars are always the star and this is the new a-35 you get a sneak preview because we are officially unveiling it tonight. the amg model of our a class i think you remember the spot we had in the super bowl. the car is doing incredibly well and we are terribly excited and we have now the performance car coming >> the amg lineup for you guys has been a home run, has been for years.

but, nonetheless, this is a luxury sedan and the luxury sedan market is soft right now which would bring people to say, do you have to temper your expectations >> you said it has been a home run and it has been. we'v we've been up 34% year-to-date in the first three months and actually bullish on the a sedan. market research suggests we're going to do extremely well new car with new technology. fantastic voice recognition. just awesome and then the performance model will do very, very well and launch two months agoful really happy.

>> we'll wait and see what happens here we'll just wait and see what the administration decides and i hope the european, the trump administration comes together and do a trade deal beneficial for both sides. >> you do believe it hurts sales if it does happen? >> certainly would have an effect with the active price, see how much we would react to that but too early to speculate about it we'll see. >> you guys will be showing your latest vision of the future when it comes to electric vehicles over at the new york auto show tesla has certainly shown success in the luxury electric vehicle market are you worried about the growth of tesla >> tesla is a competitor like every other competitor if we view it like the other competitors, we take them serious but the strengths in our product line, you know, the best line-up in the whole industry. i'm not worried particularly about any of them. i just know the strengths of mercedes is the best deal and that's where the customer experience and line-up in the

industry >> one question about the strength of the market especially the luxury market there is a feeling that we are a little oversaturated overall in the united states. are you looking for a soft spring for summer when it comes to luxury demand >> it depends. there's certain segments, the suv segments that are doing incredibly well and like the performance car that does well but overall, expect very, very little growth year over year >> little growth in the suvs >> overall, very, very little. probably the same level. but the suvs and the performance cars you have to pick it. >> the ceo of mercedes benz usa. guys, not often we see it for the first time worldwide but that's what you got to do today. >> fantastic beautiful looking car. coming up, french billionaires pledging hundreds of millions of euros to rebuild notre dame who are these folks who are taking the lead? how much money will it cost? and how long could the atto sait te? th srytrghahead.

money is pouring in from around the world to rebuild notre dame cathedral in paris following the devastating fire yesterday. so who is leading this

reconstruction effort and what will it entail joining us now, robert maxwell, the sherman fairchild professor at new york university institutes of fine arts and our own robert frank here as well. two roberts, so i'll try not to confuse either one of you and most especially not myself let me begin with you. we should not be surprised some of france's most prominent businessmen and women have pledged nearly how much money? who are they what are their backgrounds and how much are they offering >> right around 600 million euros or over 700 million in the u.s. it started when francois, whose female owns the luxury group, they pledged yesterday $100 million. bernard arnault said i'll double that to $200 million and then francois, the richest woman in the world, the fortune, pledged an additional $200 million

that's $500 million just with france's three richest families. >> arno-fauault said i'll see y 300 and raise you. >> bernard is now the third richest man in the world you've got jeff bezos, bill gates, and then bernard arnault at $9 billion. >> he's ahead of the billionaire who runs sara. >> ahead of mark zuckerberg, warren buffett. >> professor maxwell, what is entailed in this kind of reconstruction how faithful can the reconstruction be to the original, and how much money might it cost and how long might it take? >> those are all good questions and questions that don't have firm responses just yet. of course, just still learning the extent of the damage and we know that this will take, in fact, probably several weeks,

perhaps several months, to estimate the full extent of the damage obviously, the roof is gone, but what we think of perhaps less frequently is the damage to the stone. stone is fragile when it is brought to a certain temperature. and it will now take some time to determine if the walls are structurally sound it will take time to determine if the still stabbeding vaundins collapsed and others did not what is their structural soundness today? all of that will take an enormous amount of time. >> professor, who do you expect will sort of take the lead on this will it be art historians and restoration experts? professors like you? will it be the leading architecture and engineering

firms of the world who? >> it will take all of those in fact, whenever the restorati restoration, the restoration is needed or conservation program is needed for major cathedral, there are historians involved. there are engineers involved there are special lists of patrimony and then special lists of stone conservation, and in this case, we're also looking at the conservation of stain glass. so usually, there's quite a large number of people and in this case, it will probably be an expensive number of people. probably 50 to 100 who are involved in making the key decisions. >> professor maxwell, thank you. robert frank, final thought here >> to your point, who's going to control it you know bernard and francois, it's said today we want input into this. a large group of people figuring

out how to restore this. >> the state, france, actually owns the building. >> that's right, and they're ultimately being charged go ahead, please, quickly. >> the final point this in a good way reminds us of another catastrophe. 1914 and it was the great beacons and barons of that period, carnegie and rockefeller who stepped forward to help rebuild grand's cathedral. >> we have to leave it there thank you very much and that does it for "the exchange. i'll join courtney and dom in just a minute on "power lunch. it begins now, 22 seconds late >> no problem, thank you, tyler. we'll see you in just a minute when you get back over here. i'm courtney reagan with dominic chu. new at 2:00. markets heading for record highs but is this steady melt up actually a bad thing two big earnings reports out after the bells. we'l