valuations in the valley are now going to be completely reset for the companies that do attempt to go public? >> well, i think they'll attempt to go earlier, having learned from what they have seen with the current crop of ipos but it's just going to change a whole different mindset. i mean, you know, a lot of these are not in the business of investing early anymore. they prefer to invest later and later and later with a higher success rate when you have a bunch of unicorns, it looks good in your portfolio. i think ceos and employees are going to be smarter. i think the biggest impact will be on the choices employees make so you went from, hey, i'm early, i'm going to get a ton of stock or maybe i've come in four or five years in, i'll have stock, it will appreciate, i'll make a lot of money. i mean how can you continue to do that as a potential employee for a lot of these valley

companies? you've got to ask yourself, you know, will i make any money or much money at all? i think it will impact their hiring abilities first for a lot of unicorns and that will have the greatest impact, more so than how or when they go public. >> let me do this. we've bled into the next show and they're kind enough to let us do that for a moment. let me ask you a couple more questions and then i have to run. give us your thoughts broadly on what you think the market is now, what you think about the trade war, how it's escalated and what you do as a well-known investor, mark. >> right now i do nothing. you know, my two biggest positions are netflix and amazon it's been that way for years you know, i'm concerned about the trade war with china it's hurt some of my shark tank companies. companies that were manufacturing over there and dealt with the first tariffs for their company and then saw it increase even further. that's a real problem. it could put a couple of them out of business. some are close it's an issue. it's kind of a dichotomy from

the administration in that on one side they want to see the fed reduce rates because they want to see the market go up, but on the other side they have got to know that if they increase tariffs, the market is going to go down and so it's hard to know what comes next and so when i'm not sure what to do, i'll just stick to the sidelines. >> lastly, i know at one point you were toying with the idea of running for president. i don't believe we've heard anything from you on that recently part of me was wondering whether you were waiting for some of the smoke to clear democratic field, which has now risen to 22. obviously vying to run against the president. are you going to run for president? >> you haven't heard anything from me for a reason and we'll keep it that way. >> so you're still considering it >> well, we'll see we'll see what happens look, i've said it many times, it would take the perfect storm for me to do it. the definition of bad parenting is running for president when you have three young kids, 9, 12 and 15 there's some things that could

open the door but i'm not projecting or predicting it right now. >> who do you think on the democratic side right now has the best chance against president trump? >> nobody right now. i think what people are missing is if you look at why people voted for donald trump, in my opinion, it was because he was -- first and foremost it was because he wasn't a politician if you look at the democratic field, it's all politicians. politicians are the least trusted of every profession. and so it's just -- it's too early to tell. there's nobody that really stands out, even though biden is leading the polls. i like vice president biden. i think he's smart i think he could do a decent job, but i think it's still way too early to tell. i think a lot -- there's a lot of change yet to come. >> if you ran, would you run as a democrat >> no, absolutely not. i'd run as an independent most likely i still think -- i still think there's a real opportunity for

somebody who is in the middle but has some charisma, has the ability to relate to both sides but is not a politician. the reality is people don't trust politicians, period, ending of story. and we can talk about -- they just -- i don't want to -- i'm not going to change anybody's mind and i don't want to try to change anybody's mind right now. but the reality is people don't trust politicians. if you look at the democrats right now, it's hard to look at the proposals that they're making and think that they're any more than they are just headline porn to get attention i don't think anybody looks at the proposals and says, look, yeah, we're going to introduce these taxes and that trickle-down -- i think trickle-down economics is a failure. i think trickle-down taxation is just as big a failure. i don't think either one works right now what i'm hearing from the democrats is all about trickle-down taxation. i think that's a failing proposition.

i don't think they even believe what they're proposing is passable. >> you sound like the kind of person who feels like he may run for president. when will you make up your minding definitively knowing that you have to get a campaign apparatus together, fund-raising, et cetera. >> are you going to be watching the nba draft lottery tonight on the game >> yes, sir. >> yeah, we'll discuss this another time >> all right we appreciate your time, mark. it's good to catch up. >> any time, scott, thank you. >> you bet that's mark cuban joining us there on the phone kelly, i gave it over to you grateful for the extra time that you allowed us appreciate it very much. >> good stuff, scott hi, everybody. here's what's ahead at this hour it is turn-around tuesday. the president breathing new life into stocks after saying talks with china haven't collapsed and the dialogue is good we'll ask if markets are too good to ignore the stumbling blocks. president trump putting the fed in the middle of the trade war. saying if china cuts rates, so should we. and straight out of a james

bond movie, a flaw in whatsapp let's hackers install spyware with a single missed call. we'll have the details and what it means for parent company facebook let's get down to bob pisani at the new york stock exchange with the numbers. bob. >> deli, we are off the highs of the day but not my much. investors should view this as a respite in what might be a long-term trade war that could stretch all the way into the elections. that's the way a lot of people feel trade-related names like caterpillar, boeing, 3m, apple, they're bouncing but there's a lot of damage already done all five of those dow components are 20% to 24% off of their 52-week highs. take a look at this. intel is not far from the lows it hit way back in december, along with 3m and dow dupont today, jpmorgan downgrading deere saying the trade dispute

created a perfect storm for u.s. farmers. the global markets for corn, beans, wheat were oversupplied and china's demand for soybeans is declining, partly because of asian swine flu. the u.s. planting season is off to a slow start. we've seen deere down 11% just on those concerns. >> there are stocks near their december lows. we think people are just correcting from their all-time highs but we're talking about some, like intel, falling way back. >> intel, 3m, dow dupont, they're all down dramatically. a very large part of that is due to china. >> absolutely. thanks, we'll see you soon. markets jumping on the president's remarks about china, saying the trade talks haven't collapsed. but that's not all he said kayla tausche has been following the action all day for us. kayla. >> president trump slowing down the sabre rattling in the last 24 hours, saying last night he's allowing three to four weeks to make a deal. today that he respects china's leader, xi jinping, and that he

thinks the u.s. will prevail >> this has never happened to china before our economy is fantastic theirs is not so good. we've gone up trillions and trillions of dollars since the election they have gone way down since my election so that's the way it is. that's the way it stands we're going to do very well. >> so that's where the president is but over on capitol hill lawmakers are divided. some like mark rubio and steve scalise praise the president but others say they're disappointed. mitch mcconnell is expected to weigh in within the hour and that could be newsy when he does. >> we'll look forward to that, kayla, thanks. let's take a closer look at the impact of the tariffs and whether the u.s. is pushing on a string by pushing for a better deal joining me is derrick scissors derrick, welcome do all the developments since we've seen you last week tell you that a trade deal is definitely not going to happen

or do you think the u.s. will ultimately capitulate? >> well, i think we're -- i don't know that we'll capitulate but the president clearly wants a trade deal he's been affected by the market drop his language changed last night and into today more concretely, the notice of the additional tariffs, the biggest on $300 billion, is tied to the timing of the g20 meeting in osaka in june where he will have a chance to talk to xi jinping. if the u.s. were thinking about imposing these tariffs in the long term, our timing would be to allow american business to adjust instead our timing is for the negotiations, which means we want a deal. if the president wants a deal, he's probably going to get one. >> it's likely that he's going to get a deal but i see it unlikely, and maybe you feel differently, that it will include a big change on china's behavior on intellectual property or that it will have any real enforcement. >> no, i agree with you completely the president's goal to get more

purchases to narrow the trade balance is always feasible our only enforcement mechanism so far is tariffs. if we take those off as the chinese want, we have nothing. so i don't think we get a long-term change in chinese intellectual property behavior exactly because we have no long-term enforcement program. >> so we are left with other possible tools like sanctions or export controls, which i think are unlikely with this president who clearly favors tariffs but if we use the tariffs to get to a deal that doesn't change that behavior, then what exactly have we gained and should the u.s. simply drop those concerns or should we look to agencies like the wto as a better way to adjudicate that? >> well, china has been in the wto for closing on 18 years and behaved very badly as a wto member suddenly fixing the wto to deal with china seems extremely unlikely to me i agree we should not be dropping our concerns over intellectual property.

we have other tools through the commerce department and the treasury department we haven't used the administration has put at the low end of chinese i.p. theft $225 billion, yet we see no sanctions against chinese firms. those two don't fit together so u.s. policy needs to be fixed. the deal will not work unless we have the right policies. >> but it just doesn't seem -- again, i'm trying to think about what are the outcomes? it's clear wall street wants a deal it sounds like the president is listening to this and wants a deal is there a way that he's going to be able to say, hey, look, i got some progress on this front if we know that that's been a sticking point in these talks? how could we get from here to there? >> well, if we were to change our approach somewhat and say, look, we know we can enforce purchases on a smaller trade balance because we can see the purchases, we're not going to rely on china to change its i.p. we're going to take our own actions on i.p. that includes export controls, sanctions against chinese firms and we're

not going to leave it up to the trade talks. if that's what we do, then we have a chance at improving chinese behavior over time if it's just tariffs, they want them lifted and we're back to square one. >> derek, thanks appreciate your time derek scissors with aei. president trump also throwing the federal reserve into the trade battle today. he tweeted china will be pumping money into their system and probably reducing interest rates in order to make up for the business they are and will be losing if the federal reserve ever did a match, it would be game over, we win should the fed cut rates joining me now is larry lindsay, ceo of the lindsay group, a former fed governor and former director of the national economic council larry, welcome my guess is that you think the fed should cut rates but not for the reason the president is citing >> well, i think the fed should wait i think the fed is right to be patient. going forward i think we are going to see more disinflation the gdp deflator i think by next

year will be running very, very close to 1%, which should make the fed uncomfortable. if it does, they may proceed to cut rates. but no, not right now. as i read that quote, kelly, i think it was more a dig at china, which is trying to levitate itself by using good old-fashioned monetary and fiscal policy that probably isn't going to work for them. >> ironically, larry, if they do deval devaluate, it will for the u.s. offset the tariffs in a way it would help u.s. consumers and businesses >> yeah, i'm not confident they will do that remember, last fall they took the yuan down to very close to 7 to the dollar. i think it was 6.95 at its bottom there's a magic number there around 7 there's a sense that if china

looked like it was devaluing and looked like it was going through that number, they risk capital flight and that's the reason the chinese authorities pulled back and actually began to appreciate the yuan afterwards. so i'm not that worried about that step. >> that is even the argument for why bitcoin has been popping over the last couple of days is their devaluation just during these talks. >> well, not only that, bitcoin is a great way of capital flight, right? if you're chinese, you have to worry about how you're going to get your money out of the country. and turning yuan into bitcoin might be a smart way to do it. >> so what is the right move for the fed here, and why is inflation so low >> inflation is low because we have a lot of supply side factors that have been at work keeping inflation low. we used to talk about the global deflationary pressures they are still there

the tax bill was disinflationary because of the incentives for business investment. and so i think a disinflationary push will be with us for quite some time. >> and the fed's response toj that you think should be >> well, i don't think there's all that much wrong with 1% inflation or 1.5% inflation. they may but, you know, look, economists use decimal points because they have a sense of humor. so i wouldn't be that upset if inflation was running at -- even at 1.2 or 1.3. you really can't control things that finely. i don't think fine tuning is a smart idea. >> larry, final question on this we are seeing plenty of decimal point estimates coming in about how much the tariffs will hurt growth what's your own estimate of how this is going to play out? are we losing our 3% growth economy because of this?

>> well, what i have flipped on is my analysis of xi i don't think xi really wants a deal i think he's prioritized maintaining control over economic growth. he treated yu very, very badly he took away his title and made him fly commercial to the next round of talks imagine sending pence on commercial that's not going to happen there's a policy disagreement going on, and i think xi has now cast his lot with the hard-liners that they have to slow things down, they have to concentrate on control remember, they have been doing purges of both academia and their think tanks. he recently decided he was going to send the young people in the cities to the countryside. so -- >> you think he doesn't want a deal >> he is turning into -- well, i don't think the deal is a priority for him i think he might view a deal as

disruptive and he wants control above all things and i'm not sure the market fully comprehends just how profound that change is going to be, if it is right. >> all right, larry, great to get your insight thank you. >> thank you. >> larry lindsey of the lindsey group today. stocks are rebounding back big-time after starting the week with a steep sell-off. the s&p and nasdaq are at session highs right now after depths of yesterday's declines the s&p 500 had shed over a trillion dollars some of the biggest losers are those stocks with the biggest china exposure caterpillar, boeing and apple are the poster children. let's talk about strategies for investors now. joining me is the ceo and chief investment officer at smeed investment bill, first of all, do you have to have a view on what happens with the china talks what are you a buyer of here >> well, we think that the

investment banks are choking growth stock oriented market with growth stocks that they didn't used to own so simultaneous to the catalyst being fears about the trade talks are the cornerstone, the absolute cornerstone the last five years of this market is the faith that people have in money-losing growth companies and that's where larry lindsey's deflation is coming from it's predicated on low interest rates and massively abundant capital to the private and the public equity markets. >> i think i see where you're going with this. >> okay. >> is uber to you now telling us that there's a -- are you suggesting that uber's decline since its ipo means the faang trade is over? >> no, because you never know when a mania is going to die but they certainly have a massive

case of indigestion at the moment everyone forgets that in 1999 the glamour stocks were lucent and sun microsystems because companies were going public, buying routers at cisco and servers from sun and doing their thing. and then when the money disappeared to fund money-losing ipos, lucent and sun died. this time it's advertising so beyond me goes public what do they do with the money they're going to advertise at google and facebook from here to eternity and that's deflationary because a company losing money is driving the economy. >> all right. >> amazon is the king of this. their core e-commerce business has never been profitable, so what happens this does not change until the economy gets strong enough on its own, you and i have talked about coalescing millenial buyers, they're going to be the future, no question about it when they are strong enough to carry the economy on their own

without a tech euphoria episode, the capital will switch from seeking what it's been seeking the last five years, which is tam and disruption. >> total addressable market. >> you get the why. >> i take your point how strong do you think the u.s. economy can be given what we're facing with tariffs and what looks like a pretty slow global growth environment >> i think overall the u.s. economy is on relatively strong fundamentals as the trade tensions escalate. we still have growth in that 3% range. as we start to see building tariff pressures that restrain growth, restrain activity and lift prices somewhat on a transitory basis, we'll see growth slow. the key question is how much tariffs are going to be raised in the coming months and how fast growth slows, because we are on a slowing momentum path with fiscal stimulus gradually dissipating. u.s. economy is expected to slow. >> auto heard larry lindsey say

he's not sure the chinese leadership wants a deal. what happens if there's no deal? is that good or bad for the u.s. i guess the assumption is no deal leaves tariffs in place >> i think there is likely to be a situation in which we see tariffs lingering on for a long while. historically when we look back at the last 30 years, tariffs tend to stay in place for multiple years and don't dissipate. we know that the administration has not taken off any tariffs off the table so far so we're more likely than not to be in an environment even if there is a deal where tariffs, at least some of them, stay in place and that continues to hurt growth we've looked at the impact of these tariffs, this latest escalation, and we think that drags growth by 0.3% over the course of the next 12 months so that's a significant drag on growth from this latest round. >> we've got to go but bill, it seems like every time we're just getting traction on the bill smeed view of things, something comes along and slows us down.

>> there's 45% less people that are going to be 30 to 40-year-old parents. when we stop and look -- when we look back five years from now, why weren't we concentrating on discovery, target, you know, bank of america, home depot, all these companies that depend onning agating people between 30 to 45 will do great and they'll go why shouldn't we focus on that. >> i think you should throw carter's in there speaking from personal experience, bill. thank you, guys, good to see you today. coming up, autonomous vehicles are the future of driving, but can america's bridges and roads handle driverless cars? a live test is coming up. shares of disney are climbing after announcing it will take full operational control of hulu from comcast today. we have the interesting details of this deal and the future of both companies' anpls in streaming in rapid fire. stick around ♪ there goes our first big order. ♪

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welcome back to the exchange let's get a check on the market. stocks are in rally mode following positive trade comments from the president. the dow up about 350 points right now, so we're pretty much near session highs 1.4% gains, 1.5% gains for the nasdaq here's smt movers. rau ralph lauren is lower dragged down by declines in north america. the financials are moving higher today. the etf the xlf on pace for its

best day in almost a month and here's a look at some of the recent ipos, we just heard about them they're all seeing nice gains today. pinterest, zoom and lyft all up more than 5% even uber is higher. beyond meat is up a whopping 12%. it's tripled from its ipo and then some. now sue herera >> hello, everyone here's what's happening at this hour after meeting with russian foreign minister lavrov for more than three hours, secretary of state mike pompeo said he warned the russian against interference in the next american presidential election. he also urged russia to end its support of venezuelan president nicolas maduro. a national transportation safety board team is headed to alaska to investigate the cause of a midair collision of two small sightseeing planes that killed at least five people on monday the float planes were carrying cruise ship tourists. a man who reportedly told investigators that he went to the mall of america looking for

someone to kill pleaded guilty to throwing a 5-year-old boy from a third-floor balcony of the the boy survived emmanuel aranda was charged with premeditated first-degree murder and faces 19 years in prison he will be sentenced june 3rd. and the parents of a drunken driver who died in a car crash last year are suing tiger woods. they blame him and his girlfriend, erica herman, for allowing their son to drive home from woods' florida restaurant while intoxicated. herman is the general manager of the restaurant you are up to date that's the news update this hour kelly, back to you. >> sue, thank you very much. here's what's still ahead on the exchange coming up, jpmorgan has a big apple warning if the tariffs go through. the uber blame game. bitcoin's massive comeback and amazon wants you to go into the shipping business. it's all ahead in rapid fire woman: my reputation was trashed online,

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here'sshow me making it. like. oh! i got one. the best of amy poehler. amy, maybe we could use the voice remote to search for something that you're not in. show me parks and rec. from netflix to prime video to live tv, xfinity lets you find your favorites with the emmy award-winning x1 voice remote. show me the best of amy poehler, again. this time around... now that's simple, easy, awesome. experience the entertainment you love on x1. access netflix, prime video, youtube and more, all with the sound of your voice. click, call or visit a store today. welcome back let's catch you up on a few stories that should be on your radar. rapid fire is back here with their takes are morgan

brennan, bill griffeth and leslie picker. welcome to all of you. the cost of a new iphone could be headed higher, after president trump's new tariff takes effect jpmorgan says apple may need to hike prices as much as 14% to offset the higher cost of parts. that would raise the price by more than $140 look, when it's $1,000, it's pretty easy to do the math. >> the research report calls the tariffs a headwind but if you raise the price, that itself is a headwind because there goes demand. >> a pricey phone. >> especially at a time when demand is not all that strong anyway there is no winning situation for apple at this point. >> we had tony on yesterday who said, leslie, he insists they would pass that cost along i was saying why not absorb it he said they will not absorb it, they'll pass it along. >> if they're apple, they might be able to there's some elasticity with the apple phones, but this really

helps put some numbers to this idea that tariffs really are a tax on consumers and you as a consumer, you may wanting that new special phone and you may be willing to pay for it, but you may not be that happy about it. >> gopro says it's going to move production to mexico for things it ships to the u.s. apple doesn't have that luxury. >> well, they certainly have a big cash pile and the argument could be made maybe they could consider moving that supply chain. on the flip side it would be very hard to do that and something like two years and the biggest issue there is that you have the skilled labor force in china that makes the process so productive and so efficient currently. but definitely a question to be raised, i think, if you were to see these tariffs settle in for the long term. the other thing to watch here, the margin pressure, whether these prices can be pushed out to consumers, but also what the effect could be in china in thames of consumer sentiment, which we've seen ding apple in the past. >> a note from katie this week said it could be a 23% hit to

eps for 2020, again depending on whether they absorb it or pass it along this is only if he expands it to the $300 billion plus. >> i think they should start emphasizing services more. >> apple good idea. >> lots of finger pointing on wall street as shares of uber are plummeting since its public debut. they're finally rebounding today. investors in the ipo are sitting on more than a billion dollars of paper losses, leslie, and pointing fingers at the underwriters. >> they're not so happy especially after the latest filing showed how much the underwriters were able to generate in terms of fees on this deal. the numbers are in more than $100 million in fees for the underwriters. >> if you're morgan stanley, what did you get, $40 million for underwriting this deal how much bad publicity have you gotten because of lyft and uber. goldman was all upset because they didn't get the lead left position they're probably like, you know what, we're fine. >> we don't have to take as much

heat. >> we did great on the loan deal we don't need the $40 million. it's going to drag their reputation through the mud. >> i think they got like a 12,000% return on their private investment in uber so they're sitting quite comfortably. clearly the incentives are, as you mentioned from a reputation standpoint, you're not just in it for the money, you really do wanting the deal to go well. >> this is healthy for the stock market this is not the '90s again where they were bidding up all these companies that had lost all this money. let's not forget uber has lost more money than anybody that has come public with $7 billion to the red at that point and i think it shows that there's a little bit more discipline on wall street than we were giving them credit for. >> and in the public markets, morgan in general, i totally agree with you what were people talking about a couple months ago. melt-up, it would be bad for the stock market it makes beyond meat even more fun to watch because it's such a unique case. >> beyond meat, beyond expectations at this point i think you're right, i think this is healthy for the public

markets and also arguably healthy for the private markets if this starts to bring valuations there a little more back to earth because we've seen such big distortions in light of low interest rates and mega investors like soft bank. >> if it's true that people see they have not made money on uber so far, then you think it would make people tread very carefully. >> oh, absolutely. >> let's hope so they should. >> about just piling into the next hot deal and that's what we really saw with so many rounds of funding with a lot of these unicorns you had kind of a fomo effect going on, especially in the case of uber. there were special purpose vehicles where wealthy clients got in -- got private stock in uber and had zero disclosures. this took place in 2016. zero they didn't know what their revenue looked like, what their losses looked like they just said it's a hot deal, i use the product, i'm buying it. >> we have to move on but i just have to mention, there's a link

between how well beyond meat is doing and i don't know if you say katy perry dressed as a burger she was dressed as an impossible burger that's where the mania is right now. >> and this isn't even the first fashion statement that involves burgers or meat, right we had lady gaga a couple of years ago. but agri tech seems to be one of those hot areas right now. and there's an argument to be made that all of these crops, if you see increased demand, could be a very good thing for the american farmer in light of all of these tariffs and trade tensions and what that's doing to some of the cash crops like soybeans. >> let's move on and talk a little about bitcoin because this has been a monster comeback in just the last week or so. it has doubled since january it's been a lot of that just amid the trade deal action it had been left for dead by many critics if you're trying to get capital out of china and see the currency collapsing, who knows

why it's up again but that is clearly -- the timing is falling at the same time what do we have, 8300, thereabouts on bitcoin >> what's interesting is if you talk to people who allocate into different areas of the alternative market, people who have been bullish on bitcoin will say that the crypto world is a great diversifier it's not correlated to the market activity. >> it's like gold in years past. >> people think they need safe havens which explains some of the market activity we've seen recently. >> you want to diversify buy soybeans they're at an 11-year low right now. we'll skip ahead to talk about my favorite story of the week, which is amazon is paying its employees to quit and launch their own delivery businesses. workers could receive as much as $10,000 in startup costs plus three months' salary if they start a local amazon-branded delivery service because the company is trying to expand its

own operations morgan, who does this hurt the most competitively speaking? is it the post office, is it fedex, u.p.s., or is this a different animal >> is it a zero sum game >> i think it's potentially the post office because you're talking about last mile delivery but here's the other thing, e-commerce and these shipments have been outpacing capacity in general for years now. the other thing i think that's worth noting with amazon is that you had a report, i think reuters yesterday that came out and said they're installing more machines, more automation in their warehouses which is going to do away with some of the humans and the need for future humans in those warehouses to a large extent so it's interesting that they would be incentivizing entrepreneurship from those workers. >> i have a very good friend who started a logistics company last year and another friend quit his job to work for him and it's taken off. >> my next-door neighbor does this kind of stuff i haven't seen an offer like this where a company says to its

employees. >> quit your job. >> here's $10,000, three months' salary to get off your feet and go help us out by starting your own business. >> doesn't it also seem like as a logistics company it's helpful to have scale? if you have 500 employees starting their own businesses, do you really benefit from that? >> you better get in early on this, though you don't want to be the last guy in the door on these things because eventually they'll have too many people and, you know, you'll wanting -- the people getting in now, if they decide to do it, then they hire others. i don't want to call it a pyramid scheme, but you'll wanting to bring in other people under the tent. >> or the territory that they're looking at is what they're carving up. >> i feel like this is part of the ethos of jeff bezos. i think he's keen on this idea of entrepreneurship. case in point, blue origin, his space company, he announced a lunar lander and the company is broader, grander, longer term vision around space. his whole pitch last week was

that he and others like him are in a position to build out the infrastructure in space so future prenentrepreneurs, just e he did with amazon, so future entrepreneurs can continue to make space this incredible place to live. but i just think that's part of his -- you know, this entrepreneurial spirit and encouraging it. >> it also helps that there's a very, very tight labor market right now. >> true. >> maybe he just wants a bunch of delivery people to take us to mars i don't know. >> well, cargo delivery. >> if i worked for amazon, i'd think about it i think this is a very cool offer. >> the moon. >> you and me, bill. we can go places with this delivery business. >> we'll talk. >> guys, thank you all morgan brennan, bill griffeth and leslie picker. whatsapp is in damage-control mode after the company was reportedly the victim of a malware attack that 'll vehep users' conversations weha t details and what people can do to protect themselves from this, next

welcome back another security problem for facebook this time involving its encrypted messaging app, whatsapp the financial times reporting an israeli company was able to install spyware by calling the targets through this app and they didn't even have to answer the call joining me now is technology reporter, kate, who has been following this kate, welcome. >> hi. >> so it's unusual because whatsapp, the whole premise is encryption and security, right tell us what happened with this flaw. >> this is going to be really tough for whatsapp because, like you say, they are known for their end-to-end encryption. they're used by people who are very security-minded because they were acquired by facebook a couple of years ago, they have been under a lot of scrutiny for how that might have affected their privacy practices because of facebook's privacy practices. so even though this incident appears to have affected a really minor number of people who were specifically targeted as far as trying to get ahold of

their conversations, it might cause a bigger problem for whatsapp that is already under skrut kn scrutiny by its customers. >> is it fixed now or not? >> it is fixed you can go update the whatsapp application if you have it that should fix the problem. they say they have patched it. >> did they find any explanation for how this happened in the first place? and how did the company discover it >> so there's two things going on there's a lot of investigating that will have to go on to determine exactly who may have been subject to this, how they were tipped off. but whatsapp has been pretty clear this is obviously the work of a company that provides this type of malware to law enforcement agencies and governments and intelligence agencies in order to track individuals that they are interested in tracking it's most likely an israeli-based company. >> and it's amazing that they were able to, correct me if i'm wrong, they could call you through whatsapp, use that to

get into your phone and could they delete things and affect the settings but then they could even erase the history of that call ever happening so you would have had no idea? >> so the firm that is the likeliest suspect here is called nso group. they are known for some very sophisticated uses of malware like this. so we're talking about a lot of research going into a specific kind of tool, not the type of tool that usually is used by criminals. they are probably best known for breaking the encryption on -- i'm sorry, opening an apple phone that was used by the san bernardino shooters a couple of years ago when the fbi was having trouble getting apple to do that for them. >> what does all of this tell us about how secure anything we do on our phones really is? >> i always tell people when they ask, nothing is secure. pretty much anything can be broken it just depends on the motivation of the person doing the breaking and what is the security on the application itself now, whatsapp is known for

having some very good security and when you have an adversary who has the skills of what this one apparently was, sometimes it's impossible to protect against something like that. >> it's fascinating. it reminds me when we talk about having these speaking -- these speakers in your house you can talk to and what they might be listening to, you can't be paranoid enough, i guess. >> i'm probably the worst person to ask because i cover cyber security, so i'm probably the most paranoid person on the floor right now. >> do you have an alexa at home? >> i do not. i do not i don't have facebook either, sorry to say. >> kate, thank you very much kate is the author of the upcoming book "kingdom of lies, unnerving adventures in the world of cyber crime." soybean futures climbing today after falling to their lowest levels in a decade as trade tensions with china continue to simmer north dakota farmer joins us with how he is adjusting and if he still supports the president, next geico makes it easy to get help when you need it.

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american farmers have found themselves yet again hit hard by the trade war with china the president proposed $15 billion worth of aid to farmers, promising on twitter today that our great patriot farmers will be one of the biggest beneficiaries of what is happening now.

hopefully china will do us the honor of continuing to buy our great farm product, the best, but if not your country will be making up the difference ryan peterson is a farmer from north dakota and a board member of the state soybean growers association and join >> hey, thanks for having me. >> soybeans are hit especially hard the prices around decade lows. how is the impact been to your business >> soybean prices really have, 23% off the last year's price at the same time and on our operation, getting a double whammy because we grow a lot of canola as well and that price is getting affected by the tariffs because soybean prices went down canola prices went down too. so the crops we like to rotate out of soybeans because of the tariffs and say go into canola we can't do because the canola prices at historic lows as well. >> that's a double whammy. how much would you say, is it that you've lost money because

the prices are down or are you talking more about trying to figure out what crop to even do business with from here? >> that's where we're at right now. we have about three days of wheat seeding left to go on our farm and then we'll be at the time where we start planting soybeans and canola and frankly, not sure which way to go we would like to keep an even amount that's what's right for our land or crop rotation but we're just at a loss and when we talk about the package the president talked about last year, soybeans was in that eight package and farmers are appreciative but canola got left completely out. and i don't want to make my cropping decision based on soybeans part of the package and canola won't be so i better plant soybeans i need what's best for the land and long-term rotation so as we get an 8 package, this

time, it needs to be encompassing of all commodities. can't be picking the winner or loser commodities. we need to recognize that we're all interrelated with these kmom commodities and all need aid. >> speaking of picking winners and losers, i wonder how you feel as a farmer accepting these handouts when there's disruptions to your business, you need that to stay viable but in the long run as it keeps happening, is it harder and worse to understand how to do business? >> reporter: it is it's frustrating because we don't want handouts. we want to sell to our people, our consumers, our customers farmers have invested hundreds of millions of dollars of their own money through check-up programs, the chinese market, the renewable fuels market and that's where we want to go with. we want to sell our products to the consumers. we don't want government aid, but unfortunately, through these

tariffs, through the demand disruption of the small refinery exceptions with the biofuel industry, we're really at a loss right now of where to go with our products both domestically or internationally. >> finally, ryan, are you supportive of what this administration is doing in terms of, its approach to china and trying to change their behavior? do you support the president in general amid all this? >> you know, in north dakota, we are typically a republican state. we have supported this administration through some of the regulatory reform but through this demand disruption and the economic hardship that's been going on the last six months and possibly, we don't know how much further, that support is waning. we need answers. we need a solution today, tomorrow, so we can decide what the plans in the next week or two. so it is hard to continue with the level of support that is historically been there through

all of this destruction. >> so you're saying the president is losing the farmers? >> the president is losing the farmers. it's to say that the state will swing, that would not be accurate because farmers also have some fear of the far left, but what we really need is some moderation to come in this leadership and develop pathways to deal with china that don't involve such extreme levels of tariffs and trade disruptions. >> a lot of people around here feel the exact same way. ryan, thanks very much for joining us good luck. >> hey, thanks for having me >> ryan pederson in roelet, north dakota cars getting more high-tech and now america's bridges and roads have to kaucatch up how they're insecentivizing the upgrades after this. ey, servicep to do the work we want to do. so we're digging out from all the work we don't want to do. ugh, getting rid of so much paperwork.

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welcome back uber to tesla to waymo companies are investing on autonomous vehicles but a major upgrade to keep up with the technology frank hollande is out in columbus, ohio, with how the state is building autonomous upgrades, frank? >> reporter: kelly, you know, experts say our road to the

future will be as much computer as they are concrete right now, we're outside of columbus, ohio, right along the smart corridor where you'll find 15,000 miles of fiberoptic strands underneath this 35 mile roadway. it's all part of the drive ohio initiative, a public private partnership that's researching and building the infrastructure of the future. at the end of the corridor is the transportation research center that's the private company that's testing the tech for autonomous vehicles and connected vehicles that can communicate with this smart infrastructure the trc said it cost $1.5 million to build every mile of the 30 mile testing area the state of ohio said $2 million per mile to build a highway. but that doesn't mean the road to our future will be cheaper. experts say that governments will have to invest in hardware like these fiberoptics as well as software to essentially create wi-fi highways. >> the infrastructure needs to communicate with the vehicles, whether they be buses, tractor

trailers, scooters, and all of the individual vehicles need to communicate with each other. >> reporter: and the infrastructure of the future will also rely on smart signals. we saw one in marysville, ohio they will be critical to detect pedestrians. a very important of this driverless technology. those each cost up to $50,000. so right now, this is this state's approach the final price tag for bringing this to every state in the country. that's still figured out kelly? >> it would, i assume, have to come from private funds, frank i don't know if any states could really afford it >> reporter: that's a multi-trillion dollar question still being figured out. right now, the nation's infrastructure received a "d" in the society of civil engineers and forecast that the federal government will only have about half of the $2 billion needed to upgrade our roads. a lot of people advocate raising the gas tax but as electric cars become more prevalent, that's certainly not a long-term

solution. >> frank, i love those cables. good to see you. there they are yes. frank hollande in columbus, ohio i'll join tyler for "power lunch" which begins right now. >> thank you very much we'll see you in just a moment or two welcome everybody. i'm tyler mathisen new at 2:00 for a tuesday. rebound on the street after monday's major sell-off. is it safe to tiptoe back in we'll debate that one. plus, the president defends his fight with china calling it a little squabble. he also says it would be game over if only the fed would cut interest rates we'll discuss that one and facebook facing now 20 years of oversight as part of the settlement over its privacy policies what that could mean for the social media giant and investors. "power lunch" starts right now