>> yes >> going out on a limb >> you never know. going to be some risk. >> what you got? >> united rentals. stock down more than 10% since they reported another good quarter. if you don't bring equipment into the country you have to rent it. "the exchange" begins right now. >> thank you, scott. hi, everybody. here's what's ahead. the three-front trade fight. trump is delaying tariffs. delaying tariffs on europe trying to work out a deal to lift steel tariffs with mexico and canada while still holding a cardline with china. the markets are liking what they are seeing, but we'll ask for how long also, retail sales this morning posting a big miss in april. and the sector is down nearly 20% from its recent highs. we'll look at what happens if the u.s. consumer starts to soften amid the tariff hikes and which stocks may be a good place to hide. plus the tech capital of the world banning facial recognition

software by police and other agencies fearing potential abuse. good idea or will it hurt america's tech leadership? we'll debate in rapid fire we begin with today's markets and bob pisani has those numbers. >> trade in economic data dominating the headlines it wasn't a good start to the day. china retail sales and industrial production and the same thing in the u.s. weak retail sales and industrial production on both continents weighing on the markets at the open stocks opened down but then turned around midmorning when the president said he'd be de y delaying implementing auto tariffs in europe at least for six months a modest bounce in key tech names for example. intel, microsoft and especially apple which has been really weak recently on concerns in china. however, not seeing much of a turn around in several key groups big industrial names and material names like united technologies 3m and dowdupont and china worries still prevalent there. retailers still weak on the poor

retail report. many of which had 52-week lows like nordstrom and, third, bank stocks. the weak economic data plays into the deflationary narrative. >> bob, thanks very much welcome to "the exchange." i'm kelly evans. several new developments on the trade front today. european auto tariffs, the usmca and china. kayla tausche is in washington and joins me with the latest >> the president digs in his heels on china tariffs, the administration is relaxing its stance toward allies the white house plans to delay a decision on whether to put auto tariffs in place that's according to four of my sources. by law, the white house has another 180 days to make a decision so long as the u.s. is negotiating with countries that would be affected. and then there's steel and aluminum tariffs the senior administration official says the u.s. trade representative planned to float a proposal to remove those tariffs at a meet with canada's foreign minister that just

ended. canada, mexico and republicans in congress have said they'll not take up the nafta deal if they're still there. the treasury secretary said a deal on that could be close. >> i think we are close to an understanding with mexico and canada i've spoken to the finance ministers. ambassador lighthizer is leading the effort on this but i can assure you it is a priority of ours >> mnuchin told reporters later he didn't say they'd remove those tariffs necessarily so we wait on what exactly that remedy is and when it would take effect >> it does seem like they're softening their stance with two major -- more than that major trading partners, at least pushing off the tariff decision on european autos. maybe taking off these tariffs when it comes to getting the canada/mexico deal done, and focussing on china now is that right? >> i think that's right. a senior administration official told me when i asked what the likelihood was this last biggest tranche of china tariffs goes

into effect, he said very likely the president is adamant about holding china to account believes that tariffs are the right way to do that that being said, usmca is the top trade priority for the administration and those tariffs are the main road block >> all right at least for now kale kayla, thanks very much. this morning on "squawk box," steve bannon laid out the reason yes the president is taking such a hard line on china with trade and a strange bedfellow who chimed in with his support for what the trump administration is doing right now. tom freedman of the "new york times. >> china has been running an economic war against the industrial democracies for now 20 years when the companies stop making money, people realized with made in china 2025, one belt, one road and huawei's 5g roll-out, this is a master plan to become an economic hegemon. they refuse and basically walked away from the deal because they understood they've been running an economic war on this.

this is not a trade deal this is a truce and an economic war. an armistice, so to speak. and that they weren't prepared to do it >> i really agree with so much of what steve said and wrote today. china's misreading of trump and america on this issue is actually one of the biggest intelligence failures of the chinese government ever. and it was an avoidable failure. >> let's bring in cnbc contributor michelle caruso-cabrera and neil hennessy portfolio manager and chief investment officer at hennessy funds to talk more about this. welcome to you both. michelle, quite the interview this morning what strikes you as the next steps now? >> so what struck me first of all was tom friedman agreeing with steve bannon. steve bannon has been saying all this for a long time but tom friedman coming along, that is total submission of the foreign policy establishment agree with steve bannon and thinking that trump has been

right to do this >> friedman, we all identify, as the globalist and representing that but you're right he also represents the establishment when it comes to foreign policy so if they are coming around to this idea, then what does that mean for the trump administration >> well, he's got support, right? he's got bipartisan support. we've known this for some time members of congress have been very, very critical of china so he feels that he's got leverage, right? he's always felt he hasn't had the most leverage but certainly the backing of almost everybody in congress when it comes to china. >> neil, the fascinating thing to me is markets clearly just want to deal i don't think the markets are pushing the administration to fix china's bad behavior they just want a deal. they want the tariffs to go away what happens if the administration now has support for this hard stance and we could be in for the long haul? >> well, this is reminiscent of going back to the early '80s with ronald reagan and gorbachev and what was happening there mirrored -- we had a military war going on and we just

outspent russia to such an extent that russia had to throw their hands up and say it's over, okay we'll take down the wall that's it. if you look at today, it's an economic war, which steve was saying same exact war with the exception, we're using tariffs now to get a lever playing field. >> are those tariffs shooting ourselves in the foot. if we won in the cold war by outspending our adversary, we're robbing ourselves of economic power, aren't we >> well, you're doing it short term for a long-term gain. everybody knows that china has been -- their numbers are never right, number one. number two is they've been using our intellectual intelligence to better their country the difference is we've seen this so many times in history. you can go back in the early '70s with oil and arabian nations. we had it with japan in the late '80s and now with the chinese. but this whole tariff situation, if you want a deal, fine sign a deal. but that's short term.

this is long term, which is very bullish for the market overall >> bullish, okay >> so you raise the point about, are we hurting ourselves reagan spending brought down the soviet union but it cost us a lot of money there were costs to the united states and we chose to take on those costs. that's the attitude neil is talking about as well. what i also found interesting was tom friedman saying, well, the tactics are wrong. we should be including our allies >> we hear that a lot. >> my reporting is from the white house that there are plenty of europeans who come in and behind closed doors say, thank you very much because they haven't had the, you know, stomach to stand up to the chinese. >> neil, you said it's bullish for us to pursue this in the long run but bullish how exactly? is that implying an outcome in which china capitulates? why would they dorph such a thing? >> because they need us a lot more than we need them same thing with russia in the late '70s, early '80s.

if you look at china, not only do they need us for manufacturing to sustain their economy, more importantly, long term, they need food from us that's the big question. where are they going to get the food so i'm not looking day-to-day in trading. i'm looking at the long term and is that bullish for the market if you look at reagan and go back, we had an 18-year bull market and nobody has given me one iota of evidence of why this bull market should stop >> trade with china is less than $800 billion for the individual companies involved in trade, this is problematic. we are a $19 trillion economy. the numbers just aren't that big for the united states for a massive macro economic effect. they are much more important to china who is much more dependent on trade >> we've also seen, let's round it up to a 5% sell-off since the president's first threat he'd expand tariffs to the rest of chinese imports a week and a half ago is that a one-time correction

that you're sort of making the case for we reset we priced in the tariffs and look past it what happens restoration hardware has been a company you've liked in the past if this is now with us for some time, does that change the -- at least the multiples some of these stocks are trading at because they can't necessarily count on this growth or it raises their cost of doing business >> we've already had 20 corrections since 2010 this is maybe our 21st correction it's not that big a deal when you start looking at the profits of all companies and you look at the cash flow, profits, you know, are nice cash flow is even better so you look at how strong they are. the financials are getting killed, and they are as strong as they've been in decades if not longer but essentially when i look at, say, restoration hardware, they are thinking outside the box they're doing something completely different they earn $7 a share they don't pay a dividend. they're selling at like under -- you can buy it for 90 cents on the dollar for revenue but thinking out of the box and doing things differently you're not going to buy

something at restoration hardware on the web. you're going to go and see it because it's a destination now so companies are thinking differently. and to michelle's point, that multinationals, yeah, they could get hurt but remember, it's really a small company and midsize companies and they don't really deal with them >> final word? >> a lot of multinationals had already pulled back. they were already thinking about moving their supply chains because they were frustrated about all of the issues the trump administration is trying to fight against forced technology transfer, theft of intellectual property the trade-off wasn't worth it anymore for a lot of them. >> you think china needs us more and they'll come to the table for some kind of deal? >> they may have very bad backward economic thinking, thinking that state intervention is still the best way to go. we have 100 years of evidence that doesn't work but they want to have at it again go for it. >> guys, thanks. we'll see where that leads us. everyone is trying to figure it out. michelle caruso-cabrera and neil

hennessy a big move in bonds. want to bring in rick santelli in the cme pits. rick >> hi, kelly yeah, awful retail sales wasn't too enamored with industrial production or capacity utilization either but even though they responded by basis point or so drift, it really hasn't been the big issue of the day look at one week of 2s if you look at year to date of the following, our ten-year and 30-year, i'd draw your attention to the fact we're sitting right on what are established lows for 2019 on the 10-year, 2.37 those are closing lows and on the 30-year bond, 2.81. basically a parallel shift along the entire curve 2s, 3, 5, 10s, 30s, down about four basis points. the reason i bring that up parallel shifts usually mean they're taking a breather and everything is cope stetsic we'll have to see if that's the

case should we start to trade below these levels, there's going to be an adjustment and it will bring in more buying bunds at minus 10. nine basis points from the lowest yield ever of july of 2016 kelly, back to you here's what else is coming up on "the exchange. >> coming up -- trade turmoil. a potential huawei ban, and a competitor to starbucks. we're live in china with a look at the stores dominating the headlines there. san francisco bans facial recognition. this as tech giants pour millions into developing the technology and the retail etf getting closer to a bear market as tariffs worry investors. who is most at risk? this is "the exchange. [knocking]

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welcome back it's already 1:15 in the morning on thursday in beijing, and eunice yun is staying up past her bedtime. spa starbucks competitor getting set to ipo on friday the president apparently is laying the groundwork to ban huawei in the u.s. how are they reacting to this?

>> well, so far chinese aren't reacting because they tend to not react to these type of rumors, but if, in fact, the u.s. does ban huawei, that would be seen as a really, really big move you'd see beijing coming out fighting and the reason for that is because huawei is really the only chinese company that is truly global and is a champion it's in a lot of different markets all around the world, and it's seen as a way for beijing to be able to become a world leader when it comes to technology because, as you know, huawei has been very advanced in 5g technology. and 5g technology is seen as the groundwork that has to be laid for the internet of things, for all sorts of applications. so if the u.s. were to decide that they were going to impose a ban, where a lot of different companies, american companies would be able to use or cooperate with huawei, then china would see that as an attack, not only on just one company but as an attack on its

ability to become a rising superpower >> absolutely. it would be a huge development you're totally right on that but let's talk a little coffee i have been wondering about starbucks as we talked about retaliation and the future of doing business in china. and, oh, by the way, they have a major competitor tell us about luckin >> luckin is, i think starbucks' only local challenger. there are other challengers in the market, but it's really the first local challenger to starbucks that has so much money and so much fight behind it. the chinese name means luck and fortune. the logo is a deer that is native to china. it's been playing up that it really has a localized menu and that it understands young chinese better than anyone else, read starbucks so on their menu they have something -- they have fruit tea with cream cheese which is really, really popular here. they have orange soda mixed with

your americano because the company says there's a lot of experimentation going on with chinese and tastes are changing. but also the founders have a background in technology they are tech people, not food people and they have said over and over that young chinese don't need cash anymore everything is done by your mobile phone all the payments, all the orders, everything is done on your mobile phone. and another way in which they're trying to beat starbucks is with their strategy because they plan to grow their business from about 2400 stores right now -- that's pretty incredible when you think about they're an 18-month-old company and they want to have 4500 by the end of the year. but their focus isn't on the big cafes you'd see from starbucks they are a coffee counter with very few seats so they believe that young chinese more and more just want to pick up their coffee and go get it delivered they're not as interested in sitting in the cafe. and then the other way that they are luring people in is with all these different discounts because a grande latte at

starbucks here costs about $5. so 32 renimbi. and luckin discounts it anyway so it's about 25% off. but they've been throwing all these coupons at people, and one of our colleagues in the beijing bureau, she downloaded the app yesterday. got nine coupons we used one of them today and got the latte for 64 cents so i think that just gives you a sense of how aggressive they are with the financing but also raises a lot of questions as to whether the financing is sustainable. >> my major questions are about fruit tea with cream cheese and an americano with orange soda. my real question really is, is there any kind of threat of a boycott or a pushback against a company like starbucks or other american consumer products businesses >> i think it hasn't gotten to the point where you're seeing boycotts, but there is a fear about that among american companies that operate here.

and especially in the past couple of days because what we've seen is, you know, both in the state media and the official line from the government is a hardening of their point of view so state media has been in kind of an unusual way really whipping up a lot of the nationalism. and i think the essential message is they want to tell the people here that china is prepared in case there's a trade war, but it hasn't quite crossed the line to try to get people to boycott, though there have been some calls online that we should -- that they should boycott american goods but then that's been snuffed out very quickly. >> wow it's a lot for companies to think about. and like i said, americana with orange soda is a lot for me to think about. eunice, great to see you we really appreciate it. maybe try one of those by friday coming up, one international fast food company is putting real money into fake meat. why restaurant brands international is working with the unmeat and impossible foods.

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any gold, silver or platinum purchase. - with over a quarter of a million clients worldwide, we're one of the most dependable gold distributors in america, give us a call today to get started. welcome back to "the exchange." here are some of the movers this hour agilan technologies is the worst performer in the s&p

reporting slow are steals of its life sciences instruments in china. shares down nearly 12% today and mastercard and lyft are higher as they expand their partnership. these companies will now offer a co-branded debit card and no-fee bank accounts for drivers. interesting stuff. lyft is up nearly 6% today mastercard up about 1.5% children's place is falling after its sales fell 5.5% in the first quarter. the company saying it faced a number of headwinds including liquidations of some of its gymboree stores. now to sue herera for a cnbc news update. >> russian president vladimir putin says he has been urging iranian leadership to stick to the nuclear deal, despite the u.s. withdrawal. this during a joint press conference with austria's president in sochi the famous winged twa terminal at new york's john f. kennedy airport has come out of a decades long retirement with a new life as a luxury hotel

governor andrew cuomo was on hand for the ribbon cutting ceremony >> this is a smart, smart project. beyond the creativity and the symbolism. it's a smart economic project. this rebirth says, yes, we can and the new york jets are at it again just weeks after the nfl draft, the team fired the general manager mike mackagnan new head coach adam gase will serve as interim gm while the team searches for a replacement. the jets have not made the playoffs since 2010. it's the story of the day in our newsroom, that's for sure. that's the news update this hour kelly, back to you tyler and i won't mention the draft last night >> no. >> the pelicans -- >> the pelicans coming in hot. >> and the knick fans all, of course, disappointed >> my son was very happy the lakers moved up from where they should have been to get, i think it's the fourth pick >> yeah, absolutely.

>> at any rate we'll talk about that offline. online today at 2:00, we've got all of the trade talk and tweets covered for you and the market effects because it's been a yo-yo of a day this being infrastructure week, contessa brewer will join us and talk about the state of our crumbling infrastructure what might be done about it. we overall get a "d" grade just follow me home some night and you'll find -- my back is hurt from the potholes >> i totally agree there's roads i avoid because if i go down them, i'm worried the car is going to break. >> we'll talk about that and more at 2:00 see you then >> tyler, thanks here's what's ahead on "the exchange." >> ahead -- another money-losing company is looking to go public. the birth rate hits a new low. and could spell trouble for the jobs market. high end is high priority in china. and the $110 million painting it's all ahead in "ridap fire. the nature of a virus is to change. move. mutate.

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the most personal technology, is technology with the power to change your life. life. to the fullest. welcome back let's catch you up on a few stories that should be on your radar. time for "rapid fire." here to break down the headlines, robert frank, seema

mody and julia boorstin in from the west coast west coast is our first story. san francisco just banned the use of facial recognition by police and local agencies. the stop secret surveillance ordinance makes the tech capital of the world also the first u.s. city to make this severe of a move it does not limit personal or business use but there some are complaints from the tech community, guys, anyway that says we have constitutional protections. we're not turning into china it will hurt the ability to identify terrorists, for example. >> i think there are two very different stories here there's the use by the police force. there's use by sort of the more china version of, are we going to have cameras everywhere watching everything we do? and then there's the question of facial recognition by a company. something like clear earlier today. we had the ceo of clear on "squawk alley" talking about how they're not at all impacted by this because they have an opt-in service. so i think it's very important to separate those two things

and it will be really interesting because we're being monitored just -- there are so many ways to track what people are doing without facial recognition. >> what do you guys think? robert, this, a lot of cities are going to have to figure out whether to do something like this or not. i don't know if this ultimately goes to the supreme court if it's that kind of issue. >> most big cities already use it new york, boston, all the major cities use it. and san francisco ironically doesn't currently use it so this is a very symbolic vote. but i do think it's important because we don't know where this technology will lead its early days we haven't seen -- we've seen a couple examples in maryland with a mass shooting at a newspaper where it was useful to track down the subject. we haven't seen abuses yet but it's so new, so powerful that think what san francisco has said is let's hit the pause button until we see exactly what it can do, what it can't do and what the potential risks are >> is hitting the pause button going to hurt america's technological leadership not only for applications here but just in the general race for

this being an important area of innovation >> that seems to be the consensus that this regulatory hurdle just widens china's lead in terms of facial recognition which is widely used among a number of industries, including public security, transportation and retail and more start-ups, too, from china backed by softbank among other international investors that are coming to market, especially in 2019 >> i think -- i don't know it's early days still but the fact they are going to take this step could be great. it's a tricky one. that's for sure. interesting but let's talk about crowd strike it's a cybersecurity unicorn which is jumping into the ipo rush in a typical way because it was founded in 2011. it has yet to turn a profit. half a billion dollars of losses as of january. and let's check in on uber which is actually having a tough stumble in the first couple of days of trading but lyft today was rebounding nicely. uber hanging in there. this as evan spiegel told "the

wall street journal" that, quote, my heart goes out to all the folks at uber. it's very nice to have another public company to take the spotlight off of us. >> i'm glad someone is doing worse than we are. >> he's happy not to be in the spotlight. he's faced -- >> anymore >> he's he's faced so much criticism on many different levels in terms of what's happened to the company post-ipo and also he has voting control over snap. he has faced criticism for that as has mark zuckerberg and crowd strike also has class b shares which will also allow -- >> lyft has the same kind of structure. uber is that not the case? >> it is the case with pinterest but not uber >> lackluster performance from uber isn't stopping other unicorns not profitable. this is the same at crowdstrike. $3.3 billion private valuation not stopping this company from testing the public market.

>> have you seen beyond meat today? beyond meat was at 88 the last time i saw it. ipo'd at $25 >> and the other good thing about crowdstrike is this enterprise software company. those companies have done well in the ipo space look at zoom and the founder of this company started as an accountant has an incredible track record at mcafee. sold the company to mcafee and started this company you're really investing in the founders he's got a great story and from just down the road in parsnipny, new jersey but a really great founders story. and it can be good for the founders to have super voting if they are really good executives. >> the number of hacks and breaches, i'm surprised we haven't had more ipos from the cybersecurity. only 15 companies, if i'm not mistaken in the s&p 500 that are cybersecurity related. not a lot. >> seema is calling for it the gold rush. bring them to market we'll buy them all here's a troubling trend

the total fertility rate in america is at an all-time low. this is data from the cdc that says the birthvia rate is so lo. how are we to beat china if we're shrinking. >> i've done my part i have two kids. >> considered replacement -- >> replacement population. >> she's above the average, which is 1.7 >> i thought 2.1 or 2.1, to maintain -- >> it's probably going higher if it's shrinking overall >> the question is how important it is to have immigration to help fill out that workforce and that's going to be really interesting as the conversation shifts to the value of immigration as people have fewer babies >> look at japan low birth rate and very little immigration. combine those two with low productivity and it's hard to see gdp grow >> which could be a case study if this continues with japan, prime minister abe put out womanomics to encourage working

women to have kids >> the birth rate among teens was down over 70%. so that's a good thing >> but i have to mention this, you mentioned japan. how about hungary. the prime minister was at the white house yesterday. have you heard what they're doing. if you have more than four children, women get an income tax waiver for the rest of their lives. okay >> as they should. >> there are subsidies for larger families to buy larger cars there's an action plan for a loan program to help families with at least two children bye buy a home every woman under 40 is eligible for a preferential lone. they are spending more on health care but can you imagine, have four kids, pay no income tax. >> the problem with hungary is not the birth rate it's that all the young people leave to go to other countries >> hopefully that won't happen here but i like the concept i'm pushing for it finally, some big news from so sotheby's where they auctioned off the monet painting selling

it for a record-breaking $110.7 million. i think it's low but i don't know anything about -- >> estimated at 55 this is considered monet with the water lillys, the grain stacks hare his masterpiece. i saw this in person last friday it is gorgeous >> why didn't it go for more >> what are the high watermarks for recent auctions? >> it's impressionist as opposed to contemporary. so it's not as cool as all the contemporary stuff rauschenberg is going to sell tonight. so that whole trend toward impressionist is just not cool but for all the overseas buyers, they want things in their museums that will be standard bearers for centuries. and this is one of those classics that will never go out of style it just may not be the coolest trend right now but 110 is double the estimate. >> wow >> my question is, does this

indicate that all the prices for the art market are going to continue to be that elevated selling for more than twice what was expected is this true across the board or only the very, very high end. >> it's just the high end. it's idiosyncratic this piece and a few at the top. also all sorts of back deals going to where people are guaranteed this painting had a third party guarantee which means sotheby's guaranteed it and somebody invested in it you never know what's going on broadly speaking, this has been a strong week in an art market that otherwise could have had a tough time given what's happening with trade and the stock market >> i wonder if it's a good economic indicator this type of price tag for this piece of art >> for big illionaire collectors >> i'm going to buy some old masters if they fall enough. >> when they go under $1,000, i'm hitting it hard. robert frank, seema mody and julia boorstin weaker than expected retail sales and trade tensions with china are pushing the sector

lower. we wl eailbrk down the winners and losers, next

welcome back to "the exchange." macy's first out of the gate on retail earnings and address looming trade tariffs as a potential headwind jeff jeannette saying while tariffs have had a limited impact, he said a further hike would really impact our categories macy's stock is down 27% this year here to talk more about tariffs and retail is courtney reagan and lorraine hutchinson from bank of america merrill lynch. welcome to you both. court, have we had any more granularity on the impact? >> basically when i spoke to jeff this morning he said the first three really levels of tariffs have not had a huge effect on us furniture is a category that macy's will be affected in the 10% they were able to figure out. 25% is a little more painful but for the most part they're figuring it out. if we go to tranche 4, this is

going to be really hard. he said it's hard to make the math work, even with the mitigation strategies they're going through to not increase prices at least some level to the customers but they're not really saying exactly what they figured out yet or if they figure it out because that's not actually not yet a reality but it could happen. and the way these stocks are trade, the market thinks it's going to come. >> so you cover macy's right down 27% this year is there a company level rationale for that or do you think it's just discounting what happens if those hikes go up >> there's a couple things going to in retail last year was a great year for the u.s. consumer. higher wages you had tax cuts it was a really strong year for spending this year it's still good but not as good as last year >> it's a macro issue in part for the u.s. consumer. are there any -- i know more of an economist question but we saw it this morning. it's amazing how volatile retail sales have been. this terrible december number and great january. now a bad april and why -- any

sense as to why the environment is so much more volatile and hard to figure out >> part of it, i cover apparel and weather really plays a factor my thermostat was 45 degrees so that pushes the spring selling further into may that did hurt april to a certain degree but we also think that the consumer as their wages aren't going up quite as much anymore, it's probably a little more discerning with what they're buying >> more down 20% for the broad sector from the highs. and so far the u.s. gdp numbers have been okay i understand there's fits and starts but this has been a better start to the year than we would have thought >> people ask me, how is retail going? i say it's okay. it's not bad it's not great and some folks are figuring it out better than others for a long time, investors were giving retailers a pass and allowing them to spend the money they needed to invest in this

omni channel experience. some of that patience is starting to wairb ostart ing to wear out. now they want to see some of that pay off on the profitability side that's some of it. and they want to make sure all the money they did invest was worth it and that consumers are buying in store and online we don't want to see any more store closures you need some of them to make the omni channel strategy work >> lorraine who is sort of best positioned in this kind of environment to continue to do well in terms of retail? >> we really like the off-price retailers like tjmaxx, ross stores, burlington they've been huge market share gainers. and we think that ntinues. generally disruption is very good for off price and so tariffs, you know, while maybe they pose a near-term pressure, should be very good for them sbngetsing because they'll get more of that inventory what about department stores >> generally pretty negative on

the department stores. kohl's being our only buy. the rest we're underperform on there's still a lot of pressure on the department stores and you need some out of the box interesting, other sales-driving ideas. >> like kohl's with amazon returns. >> exactly >> what specialty then >> specialty is tough. it's very difficult. we think there are a few that have gotten a little too cheap i put urban outfitters in there. tapestry but there are some we just look at as long-term secular market share donors >> donors? courtney, you don't want to be a market share donor >> you really don't, do you? you want to try to be gaining. and to that point today when i spoke with jeff gannett at macy's he said there were years we were losing share and we're narrowing that gap in some of our categories so they are making their way back, but they have still got a ways to make up, too they are in that department store space which is a tough place to be. >> guys, thank you courtney reagan and lorraine

hutchinson shares of beyond meat are on a tear since its market debut. up next, the ceo of restaurant brands international on why his company is making big tsbe on alternative meat and what it's going to mean for the bottom line we'll be right back.

welcome back shares of beyond meat just keep running. they just hit $91 a share. that's a 14% gain today. they are up 260% since the260% o $25. they're about to get another buyer. tim hortons is about to test it in the canadian stores we have all the details with kate >> reporter: that's right. rbi just wrapping up the first ever investor day. laying out the long-term strategy for the three brands burger king, pop eyes and tim horton which you mentioned they're going to get to about 40,000 locations around the globe up from 26,000 today that's over the next decade. they announced this morning a partnership for breakfast sandwiches with beyond meat and tim horton is testing in canada and a hand full of markets the company announced yesterday it was expanding the partnership with impossible foods for the impossible whopper

moving that to four cities across the united states we got a chance to sit down with rbi's new ceo this morning and i asked him why they're partnering with two different companies for the alternative meat options take a listen. >> the impossible whopper which we think is a very unique offering, kind of building on the heritage of burger king which is flame grilling. i think it's going to be an amazing opportunity to grow in a new account goir for burger king and the same for tim horton in canada the team tested what would work best as an alternative to best or sausage in the breakfast category, and we concluded beyond meat was the right one. we're testing starting today meeting demand, and that demand story is going to be huge for beyond meat and impossible foods. the ceo of impossible foods talked to us last week and told us they're going to use some of the cash from their latest funding round to ramp up their capacity to hopefully meet demand as more and more of the

restaurant companies move into the sector >> trying to make stuff of the stuff. here in manhattan or in manhattan they often sell at diners the impossible burger for $12. is this the exact same burger that burger king is presumably selling for -- at what price point? >> yeah. exactly. so burger king is about on par with what it's charging for a whopper. i'm not quite sure if you're getting upcharged. some local chains wind up selling the impossible burger and products from them i'm not sure what the markup is on that. but you said it. demand is there across the board. more and more companies are moving into this space white castle is working with impossible foods you have karls junior moving in and eventually bigger and bigger players like mcdonald's. the demand will continue to grow the companies keep changing to meet consumer's preferences that are changing and they're meeting that demand. >> the sausages too in the breakfast sandwich kate, thank you.

kate rogers today. >> thanks snchlkt> >> that's a new stock exchange on the block that could impact how silicone valley startups go public we'll talk to the ceo about this next

welcome back the sec approving the application of the long term stock exchange on the west coast. it will become the 14th national security exchange in the u.s the goal is to incentivize companies to -- how do they plan to do that joining me is the founder and ceo of the long term stock exchange welcome and congrats >> thank you for having me >> tell us first what the proposals are to bake this long term oriented. >> we're america's newest stock exchange as of friday. we're at the beginning of the journey. the idea is that for the next generation of companies they and their employees and their communities they want something different from our capital market system. they want to be able to think in terms of decades and generations. they want better engagement in long-term engagement we call is citizens we will have standards and

disclosures subject to approval that will have companies explain to the public, to their investors well, what are you doing to make long term strategic decisions? how do you reward shareholders for being long-term partners for you and how do you take into account the effects your company has on your critical stake holders, on your employees and communities and partners how do we know you're going to serve your customers not just by exploiting them. >> in the approval here, you don't actually have any of those structures yet is that right? you've been approved to be another exchange, but tell us about the next steps in the process? what happens if the esc says we're not going to approve you with those different kinds of strategies >> i'm not too worried about that we went through a similar process with them last year. we have a good sense of how they feel about it. but yes, this is the first step. the way that the exchange approval process works, it's not a fast process we've been working with the regulators on this for about

three years. this is a very important milestone. we're pleased with how it's gone there's a series of technical files that have to happen next we have to get our technical architecture approved and the next listings approved >> will you only open for business if they approve it with all of what you want to do >> that's actually not how it works. so first we'll begin by trading stocks that are listed on other exchanges. that's the first milestone for the implementation then we'll be able to list companies under the standard rules, and then rather than kind of do it all once where it's all or nothing, we'll take an approach as we layer more standards on piece by piece. remember, standards set the minimum of what companies must do companies can still choose to do more i think of the next generation of companies that are likely to do that. >> amazon is a great example of a company that's in it for the long term. they trade on current public markets under current rules. what about people who say hey, you're just trying to baby uber and some of these other

companies, and give these private unicorns priding at lofty levels a better exit strategy than the unforgiving public markets >> it's funny you mention uber if you compare uber to amazon, amazon went public after three years of operation if someone had the fortitude to buy amazon at the ipo and hold it this whole time, think about how much money the public has made from the journey. i don't know what will happen with uber. it's early days. the idea the same level of growth is going to be available for the current crop of ipos is disappoints. it would be better if we could get them to go public sooner that's our ultimates a separation >> absolutely. it would be great if that works out. thank you. you'll be up and running within days >> certainly by the end of the year there's a number of steps that have to happen now >> all right thank you. we'll check back in. founder of the long-term stock exchange and ceo that does it for this

exchange thank you for joining me i'll go join tiler in a moment for "power lunch" which begins right now. >> thank you we'll see you in a moment. welcome, everybody to "power lunch. new at 2:00 for a wednesday, trade, trade, trade, the president considering delaying tariffs on autos inbound from europe but holding firm on china. and potentially finding a way to the finish line with mexico and canada big issues we'll bring you the latest on all of them. plus stocks cheering today's developments at least right now. but should investors worry about the economic day that that is signaling a bit of a slowdown here and abroad? all that plus the war on cancer. a massive amount of data hitting after the bell we'll tell you the stocks you need to watch ahead of it as "power lunch" begins right now >> let's get a check on the