>> number one jpmorgan >> we talked about facebook earlier. i am seeing a bunch of calls and i'm jumping on top of that >> what? >> facebook. that was my stock. you can't do that. >> i have five seconds three. "the exchange" begins now. thank you very much. welcome, everybody here is what is ahead. 48 hours and counting. the fed set on a decision on interest rates this wednesday. the market all but begging for cuts will the fed hint that they are ready to deliver. a chaos factory. that's what tim cook calls some of the tech industry and companies need to take responsibilities for their products we'll debate his comments. and is the biggest threat to the u.s. financial system cyberattacks jamie diamon thinks so before that, let's see how your money and investments are doing.

dom, good to see you. >> sully, your money and everyone else's out there is doing okay if you're long seeing modest gains. maybe a quarter percent for the major indices. the dow industries up 50 points and the nasdaq up about 0.75% and one of the big reasons why is because of the outperformance as of late for one key sector in in particular. communication services within the s&p 500. that particular index. up over 1% today this particular sector is now the fourth best performer in the s&p. up 17% on the year to day basis outpacing the market and one of the big reasons why this sector is outperforming is because some of the stocks, some of the key ones there like social media and facebook and recent optimism and some of the buy the dip

mentality. remember, this is a huge move. they had fallen by about 19% from the recent highs. they're up about 15% since then and they're up about 51% since the december lows. brian sullivan facebook shares ones to watch. perhaps if they do catch more of a bid, more of that calm services sector will power the gains. >> dominic chu, we're watching that, as well. by the way, hello and welcome to "the exchange. i'm brian sullivan hope you're having a great monday stocks are doing okay as you saw dom lay out. but shake off all the chaos going on in the world. let's find out why and get more on these markets with bob pisani at the new york stock exchange and doesn't matter what the headlines are these days as long as the fed is in play. >> fed and trade, yes, brian two big stories this week. trade and the prospects for getting u.s./china trade talks back on track when president trump and xi meet next week in

osaka a osaka. but wilbur ross down played. materials, industrials all flat to slightly down today we did see some strength and dom mentioned communication services facebook, google, they're turning around a little bit. can the fed set the stage for a new easing cycle when it meets on wednesday this is very tricky. traders are expected and to leave the door open for a rate sounding panickyummer without that is the big story. did you see utilities in real estate historic highs on friday as rate cuts make them more attractive investments for yield hungry investors. back to you. >> bob, we'll see you soon thank you very much. as we count down to the wednesday fed meeting. more big players are coming out critical around the central bank this morning jim grant saying that the market is the tail wagging the dog. at least when it comes to the fed. listen to this

>> i think this is becoming more about canes and the market has been conditioned to demand a rate cut when it feels a little weak in the knees and the fed has been inclined to so grant. >> all right do you agree here now to discuss, debate and dive in senior portfolio of morgan stanley investment management and alliance bernstein and steve liesman. is the fed ringing the bell and is the market the last couple days salivating? >> i don't know the fed is ringing the bell as much as the market is salivating without hearing the bell and by that i mean -- >> maybe we're too conditioned >> i think that's exactly right. the fed is what it would call it reaction function is working reasonably well, except that it

removes some optionality there's a weakening in the economy and a growing concern about a recession. growing concern about the weakness and the tariffs and the global economic weakness those set of factors, the market is conditioned at this point to say, you know what, if those things are going to be true, then the federal reserve will cut. and i think that the market gets ahead of where the fed wants it to be, which raises the issue and the bar for wednesday where the fed wants to give the market some of what it wants, but preserve some optionality. >> maybe, jim, say it a different way. i don't want to put words in steve's mouth, but the market is not leading the fed maybe bullying the fed and trying to scare the fed, if you don't do this, things could turn south. what do you think the fed is going to do on wednesday >> i don't think the fed does anything on wednesday. >> no cut. >> no cut. the last eight quarters we averaged 3% gdp growth and two

quarters that were in a low growth is it permanent or temporary i'm in the temporary camp and the fed shouldn't jump to reassure the market here they've done enough so far and they don't need the cut on wednesday. >> andrew, do they cut on wednesday? >> look, i doubt it. but it's all how they indicate i think if it was a bigger concern, you wouldn't have the market within 2% of an all-time high a lot of negatives and yet the market is very resilient i don't think this is just the story of, well, the market thinks the fed is going to cut rates. i think there's a much deeper story of why the market is so resilient. >> which is what >> look, i think we're going to have a retest of the low we had made this summer first of all, i'd say that what no one seems to discuss is that the market is at the same level it was in january of 2018. we have gone no for 17 months

and when that happens the level of bearishness builds and eventually what happens, it's like a beach ball holding underwater eventually that beach ball is going to pop out of the water. we've been going no where for a long time and i think that's the story of why the market is so resilient is that so many people have grown very bearish even though the market is hanging in there. so, i don't think it's just about the fed, i think it's about positioning is very negative right now >> look at the valuation of the market it's only 17 times the ten-year treasury is 2.1%. equities is a heck of a good option right here. >> they could make the option that 17 times is not cheap based on historical estimates. >> it is very cheap. >> would you commit your money, brian, for a ten year at 2.1%? would you lock it up for ten years? i don't think so >> if i felt like the equity

market is going to fall, i would. >> if you're there for ten years, the next eight are going to be pretty good and a divyiden yield while you're waiting >> andrew has a good story but missing one or two chapters. the market has kind of tread water here amid a huge downdraft in yields and a major expectation for the federal reserve to cut rates you could argue and i think there is some sort of beach ball metaphor here which is more along the lines that the fed rate cuts are the buoys that are holding the market up at least from falling further and, he may be right that there is something else going on relative to why the market remains close to the highs, but very interesting to see the fed chairman repeat the words patient. and otherwise convince the market there is no rate cut and see what happens to the level of equity >> i want to make sure it is

understood >> the market is up 16%. it's june. i wouldn't get aggressive here on the market going into the summer that's a big return already. i just think eventually, i think we'll have a retest maybe 2700 or 2750. i think the longer this thing goes without breaking the upside, the more it's likely to break to the upside. in other words, the bear argument is getting very long. >> here's the argument jim, how long are you doing this >> 30 years. >> how many of those years are you doing this where there is a massive trade war between the two largest economies in the world? >> there is always something out there. >> there's always something. >> there is always something >> i don't agree it's just one of those things. >> here is one of the things where we had slow down, recessions and those could be normal and healthy here's the issue we're trying to debate the fed and debate the economy when we don't know and there is no historical precedent for this type of a trade fight on this

scale. >> that's all fair but as portfolio managers we're buying companies, not the whole market there are a lot of companies that can dodge this that are really well positioned that are growing. what do they do? microsoft. it doesn't matter if there is a trade war. guess what, people are going to move to the cloud. microsoft is going to be great mastercard you're going to use your card regardless of what is going on in the world. >> to your point, brian, globalization and the growth of markets around the world, the ability of companies to source their materials and their components at the cheapest possible price and take advantage of foreign labor has been central to the thesis of investment in america for growingly over a 20-year period. and now that's coming to an end in some way, shape or form >> is it? >> it appears to be. at least a need. if not, it's a question if not to overthrow the prior thesis. >> we have 48 hours until the

fed. a great discussion i have a feeling we have not had the last one. we are just getting started. here is what else is ahead on "the exchange. >> coming up, boeing is the talk of the town at the paris air show we'll speak exclusively with the airbus ceo with his take on the max 737 controversy and the outlook for the company. plus, the tariffs hit home two u.s. businesses share their stories on the huge impact the tariffs will have on their business and employees and one week out and opec can't decide if it is going to meet why and what does it mean for the oil market >> this is "the exchan" bceeon >> this is "the exchan"

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welcome back it is a tale of two aviation giants in paris. in one corner, boeing, struggling to regain customer confidence in the wake of two deadly crashes and the grounding of the 737 max fleet in the other corner, the hometown hero, airbus rolling out a new plane and feeling its mojoe. phil lebeau spoke with the owner of airbus and joins us now phil >> they're enjoying that mojo we just talked with the ceo about

the xlr and we started the conversation with why he believes this is a plane that will be massively successful >> range of products is very successful and based on the 320 and 321. we made a major improvement of the products and we went one step further two years ago and now we know with the xlr additional range why is it so important because you can use a narrow body going long distances and you can connect cities that had no connections with a good business case. it's creating a new market and plus replacing the older generation that need replacement. >> the 757s. >> that's right. >> a lot of people who look at this 2023 launchtime and say

that is really aggressive. can you make 2023 for first deliveries >> yes >> are you worried in this environment that regulators are going to be extra scrutiny more scrutiny in terms of certifying aircraft, like the new xlr. >> there is scrutiny from the regulators, that might be good news, as well. a way to raise the level of safety we've gone through this in the past and we think it is very important to have a strong and reliable certification process that is a worldwide start out with the authorities staying together when it comes to certifications start ups which have leveled the playing field >> you're not worried that that time frame is too aggressive >> no, the time frame is okay. >> what about the aspect of the backlog is so great for airbus right now that people look at the additional plane and at some point you'll have your suppliers stretched where you'll have tricky moments getting them up to speed are you worried about that

>> we went through the difficulties last year when we had the engine difficulties, as you might remember we had to park planes without engines. we called them gliders it was a very difficult time for airbus and we managed to recover and we have suppliers on time and reaching rates 60 per month middle of this year, 2019. and we're going to go by 2021. we believe it is a reasonable growth. >> are you worried about the supply chain, not just for your aircraft but the industry overall that so much growth and so much demand not only on commercial but also defense that the supply chain may not be able to keep up >> today the supply chain is the factor yes, we are working very closely with the supply chain to make sure what we demand is something they can supply. not to be in a situation where we would have disruptions and this is basically the way we're

moving forward close cooperation with the supply chain >> one other reason why the xlr is important is because it addresses the middle of the market in other words, the plane that can reach smaller cities that are further apart. boeing is working on its own middle of the market airplane, but they have a lot of things on their plane when it comes to the 737 max and they're not going to be to market as quickly in that segment as airbus will be with the xlr. >> i understand that a short time ago there was a boeing executive, maybe the ceo making some comments about the possible name change around that aircraft >> yeah. right. remember, this is what donald trump tweeted out i think a month or a month and a half ago. you ought to change the name of this plane, it's such a disaster i'm paraphrasing what the president had to say we talked with dennis muilenburg and he said, nope, not changing the name at all. if you did change the max name and now the cfo on the sidelines

here at the paris air show said we're talking with our customers on how to improve the, mating for this plane in the future if that includes potentially changing the name, then we'll look at that guys, this is what you would call a complete flip-flop here in terms of messaging from boeing you're either going to stick with the max name or you're going to change it because customers say the name is too toxic. at some point they have to get that messaging straightened out. believe me, changing the name, brian, a big deal. not only go through resertification and say to the public, trust us the plane we're getting on is the max but we're not calling it the max. >> i haven't seen this yet you have delta that fly a lot of airbus jets. are they going to start marketing the airbus in their sales materials to customers and fliers hey, we fly airbus, we're fine >> i don't think we're to that point yet. i don't think so i think the bigger issue is that when this plane comes back whether it's in three months,

four months, six months, people will be looking at first, am i getting on a max a lot of people will say, i'm not getting on it, at least initially. >> phil lebeau, thank you. more than 600 companies urging the president to dump the tariffs. ahead, we speak with two business owners who say something has to change. plus, one week until the big opec meeting or is it? we'll hit the chaos around the cartel and i'm sorry to all you parents but "baby shark" not going somewhere any time soon. the company behind it is making boat loads of money. how much money they're going to need a bigger boat stick around

welcome back to "the exchange." if you own any of these three stocks pay attention two of them on the move bigly. pfizer is buying the company for nearly $11 billion it is helping the entire sector, by the way the xbi on pace for its best day since february another huge mover is sothebies. in fact agrees to be taken private for $57 a share. after more than 30 years, it was simply time for the company to return to private ownership to

continue to grow but it is not all in the green tyson foods, those shares getting plucked a bit. down a couple percent. it announced today that it plans to introduce nuggets made from peas, flax seed and other plants despite this new competition, i guess, beyond meat is up another 8% today tyson is down 3% beyond meat up 12.5. that stock just continues to go. all right, now, let's get a check on the headlines outside money and business let's go to sue herera >> great to see you, brian here is what is happening at this hour. egypt state tv says the company's ousted president has collapsed during a court session and has died m morsi was elected president in the country's first free elections. the military ousted morsi in 2013. demonstrators in hong kong de

gathered outside the office. nearly 2 million residents joined a march on sunday that lasted late into the night to express their frustrations over the bill, which is backed by beijing. back at home, a gunman was shot after targeting a federal building in dallas heavily armed law enforcement officers descending on that building he was identified as brian isaac clyde born in 1996 no one else was hurt and the measles outbreak in the u.s. continues to grow the cdc says there are now 1,044 cases in some 28 states. that's an increase of 22 cases from the previous week most of those cases are in new york you're up to date. that's the news update this hour brian, i'll send it back to you. 30 minutes to go until "power lunch." tyler mathisen >> brian sullivan. like old times two virginia guys right here >> see, congress, if we can come together >> if we can come together, you should be able to get something done

we'll talk a lot about the fed because the meeting begins later this week. we're going to hear from one person who thinks they're going to cut this week by at least a quarter point. others are a little more wary of that idea. think a cut may come in july or september or whatever. but an awful lot is hinging on that yield curve inversion all of that stuff on the table, we'll talk about that on "power lunch" and more >> i can't wait. >> nice to see you, man. >> nice to see you, as well. i'm all choked up. here is what else is ahead on "the exchange. coming up, is silicon valley turning into a chaos factory huawei's hefty hit. weather woes taking a toll on the u.s and taking autonomous delivery to a new level

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all right. welcome back three enter, only one can come out alive. time for rapid fire and today the contestants will take on tim cook, hauwei and the weather kate rogers, john fort and contessa brewer. apple ceo tim cook taking yet another swipe at the tech

industry in a commencement speech at stanford university. suggesting silicon valley needs to take more responsibility for some of its actions. listen to tim cook >> it feels a bit crazy that anyone should have to say this but if you've built a chaos factory, you can't dodge responsibility for the chaos >> wow so, john fort, what has gotten into tim cook lately where he is going after, i assume, the googles and the facebooks of the world. >> this is aggressive even for tim. apple has sign in with apple and it has an alternative to what other companies are using and maybe he's just trying to drive that home more and more. i mean, this software is coming and it's going to be available in just a few weeks. and for some people, it might be a selling point. >> is this really about continuing the market message of we sell privacy, we don't sell

you. we don't sell your data. we sell a phone and a service. >> it seems crazy that anybody would have to say this, do you know how much money apple made off of google last year. when you put a search in safari they transfer it to google they made 9 billion and on pace to make $12 billion off google today. some of the biggest privacy invaders in the business and a big soap box and a big glass house for them to sit up there and throw stones. >> he must be very confident also broadly the accountable message not a bad one for a new class of graduates >> all talk and no walk? >> i think he's talking the talk and walking the walk >> i think he's doing both but i think, jon, not winning any friends in silicon valley but does he need friends in silicon valley he needs friends in washington right now. >> he has plenty of friends who need him, which is the best kind of friend to have. people don't like each other just to like each other. they need to be on apple's

platform because apple's platform is where you make money as opposed to get eyeballs apple has leverage and they're starting to put software in place. >> let's stay on tech, different story. chinese tech giant huawei slashing revenue and the company's ceo saying it will begin reducing production capacity, get this, leading to a $30 billion sales cut over the next two years however, he did promise that huawei would regain momentum after 2020 we're realizing how big huawei is when you cut your forecast by 30%, it's opening some eyes about how big this company has gotten >> they did say they would regain the momentum in 2020 and beyond obviously, optimistic by moving ahead in the future by what this looks like right now >> who knows what is going to happen in two years. chip companies were saying the second half of 2019 would be rosy we now see that is not happening

in part because of huawei. uncertainty that is hitting both this big chinese company and a lot of tech companies here and, frankly, i don't think he knows what is going to happen in two years. >> it is kind of like the boeing issue, if you wonder in europe and other parts of the world they avoid huawei. >> i am surprised we are not hearing other competitors who are trying, they're trying to take some of that share away from huawei. you would think this big ramp up effort to do so and, yet, huawei is the big leader. >> these are multi-year sale cycles, i would imagine. buy $10 billion worth of gear, it is a hard cycle >> hard to say huawei is the leader, they are a player, but at a level they don't want to win like this either what is happening is what others have accused china of doing in

the eyes of some. >> do not miss cbnc interview all day on wednesday going over there and sitting down with ren zhengfei then there's this, the company behind "baby shark" capitalizing on the big splash it made and swimming its way to a bunch of different ventures contessa brewer, as somebody with young children, what is next for this thing that we can't get rid of >> the merchandising is incredible 35 deals with the creator of that viral video already in play you're seeing these products everywhere they just inked a deal with nickelodeon to bring this to an animated series. i think santa is an early investor, in fact. third, a live show 100 concert dates across north america so, imagine screaming -- >> if our viewers don't know what this is

okay it's like poison ivy but it's a video. let's listen to the music ♪ mommy shark doodoo doodoo ♪ >> daddy comes back. >> you're watching and it's fine they're playing it at weddings now and the people are rushing out to do that these investors are saying sky is the limit. >> what kind of crazy parent do you have to be to go to that concert? we barely want to listen to it for a minute or two. what else are they going to perform? >> you're forced to. >> have to >> childhood >> i have said it before and i will say it again. i sang this song at day camp in the mid to late '80s are we just

grabbing -- >> you didn't market it. >> remember the police original version. that's a different song. sorry. goes to show how things get hot so fast and then kind of go away please, just go away going to need a bigger beer. next up, u.s. farmers are already feeling the heat from trade tariffs and a new adversary and mother nature. if it seems like it is raining all the time everywhere, it has been the wettest in april recorded history averaging more than 36 inches of rain for the first time ever. that's causing major crop planting delays and department of agriculture the slowest pace in 40 years and the flooding is severe kate, we talk about the weather and not just annoying, but it's destroying crops and businesses are suffering and it just won't stop raining >> and if you're hit by a double whammy here and also impacted by this trade war, it turns out you actually need to have planted a

crop in order to be eligible for the $16 billion aid package that they just signed you need to be able -- >> if you can't plant because your fields are under water. >> and you're already being impacted by the ongoing trade dispute. you're hit twice, really unfortunate for the farmers for sure >> a silver lining here. they say corn prices are rising and the people who are able to plant are expecting to see a better return on the yield. >> i don't mean just the midwest. here in new jersey, i'm getting hold and it's raining all the time we're seven inches above and killing local businesses by the jersey shore it's a business story, too >> it sure is. i frankly think they should have come up with a better term than global warming or climate change both of those sounded -- it's weather chaos. >> the insurance industry calls it variability >> how about it needs to stop raining. domino's is teaming up with

neuro to test automated delivery a rollout program in houston later this year. it does seem a little extreme to deliver a $12 pizza. >> no, i mean, domino's needs to find ways to be creative to get people their pizza quickly and competition from the grub hubs and uber eats and they do all their delivery in house and it's a robotics company for this pilot test that kicks off in houston later this year. a small, unmanned car delivers your pizza to your house and no driver and no one to tip and you have a special code that you enter and you can get your pizza like that. i did a similar story with robots on campus earlier this year and, you know, you don't really understand it until you see it in action but these little robots are like mini coolers. i have seen something similar. >> all those pizzas in there when it opens up >> you know what is going to happen a couple drunk college kids are going to use this and order two pizzas and open it up and look

at it and be let's take all the pizzas because they think it is funny. >> a lot of these things have cameras on them. if you get drunk and steal pizzas, they'll find you >> it will be a whole thing. >> easy point break. i like the reference >> that's what these kids do >> don't ask me -- >> are you talk about the or reboot -- >> "spiderman homecoming." they had avenger masks on. >> i'm going to go back to the story that i know and love >> contessa brewer, third place, kate second and jon fourth >> what the heck >> you guys tied for the win and contessa is out. companies across america signing a letter to the president urging him to drop the tariffs. we're going to meet two ceos on opposite sides of the country coming together on this billion dollar issue, next

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over 600 companies signing a letter last week opposing plans to slap tariffs on another $300 billion worth of goods made in china. and some of them will voice their complaints starting today in washington as the u.s. office of the trade representative opens public hearings on the impacts of the tariffs let's bring in two of the ceos who signed that letter len lee is the founder of women's boxing company and chairman and ceo of bicycler make kent based right here in new jersey lynn and arnold, big topic here. let's start with you how have the tariffs impacted you so far and if the new tariffs kick in, what do you see as the further impact? >> thanks for having us here today. i think the most important thing to think about, especially when it comes to emerging brands and businesses is that it materially impacts our ability to make any

strategic decisions as well as product innovation to expand and grow our companies to remain in a competitive advantageous place. >> you know, arnold, you do make bikes here in the united states, as well. based in new jersey, south carolina and china why can't you make all the bikes here >> there's no bicycle parts industry there was a bicycle parts industry in the united states in the '70s and '80s, but the unfair competition from china wiped it out and by 1995, everything was gone. so, we -- >> this is not just a measure of a kent bike being raised in price by 25 bucks. this is you probably can't build the bike >> the parts are not available right now at all we would like to and we're working on programs to bring it back, but it will take years >> are you seeing the same thing, lynn, is it not just about the money, is it just about the availability you may not have a company >> well, if you think about job creation and innovation, they

both go hand in hand when we're talking about company growth, being able to create new businesses and products in the united states and importing them from places that enable us to grow and scale competitively amongst bigger players, that's critical to the culture that we seek with this trade war what it stands to do is impede on our ability to remain competitive in that way >> i think, lynn, if the president was sitting here, though, he would say to you, just make your stuff in the united states. make it here sell it here >> yeah. i can totally understand that sentiment, yet at the same time part of the challenge is you're talking about infrastructure and scalability challenges when you're talking about american manufacturing, a lot to be proud of in america, but what is also missing is the scale the scale just simply is not the same as it is overseas, as well as the cost of labor even with fair trade practices enacted overseas the cost of labor still remains

to be much more competitive than the united states. it goes both ways. >> we know, arnold, not just about cost the idea, i think, the consumer will have to pay more but you're going to employ your neighbor. the guy who lost his manufacturing job can work for you. but is it simply not only too far gone, but 7 million open jobs in america. are the workers to do that even available? >> no, if we're going to be manufacturing in america right now, these have got to be high-tech job. the weldings will be done by robotics and tubing will be done autoimation and laser cutting. >> could that make us more cost competitive? the idea is that it is not about 1,000 people in a factory working for low wages but three people and a bunch of robots but brings down the overall product so you can compete on the global

stage? >> i think that's a little bit of an exaggeration, we need more than that because robots needs repair from time to time we are working on that, it will take time. >> lynn, quickly, do you look to say, okay, i have to look at india and bangladesh and sri lanka. >> our team have been working on second and third-party sourcing in other areas around the world to try to be competitive and resolve this situation when you look at the larger players in consumer brands, they are able to make the larger pivots even though it will affect their bottom line, as well emergings businesses such as both of our businesses, we have to work harder to stay alive and be able to serve our employees, serve great products and still remain competitive 70% of consumer spending makes up our gdp so, it does trickle down and, so, we're all working hard here to fight against this tariff war but, you know, the best we can do is band together and sign a

letter like this to show united front that it is important >> different sides of the country but same side of this issue. thank you very much for joining us >> thank you. coming up, just eight days until one of the biggest opec meetings in years, or is it? the incredible story coming up on how a group can't even agree for a date for the meeting that has been set for six months. pa od e lk about that anth imctn oil, next. it's them, calling us. it's going to be a week before they can get through on these roads shhh, sorry, i didn't catch that. i said ask how soon they can be here right now? what's now? he says they're surveying our property now they're probably at the wrong house i don't see any hovering his name is hovering? look up? by automating claims with machine learning and analytics, cognizant is helping insurance companies advance how they serve even hard to reach customers. cool ♪

next tuesday, opec is scheduled to meet in vienna, austr austria, for what could be one of the most contentious meetings in years although maybe they won't. saudi arabia wants to move it back every country needs to aggrieve on the change to make the change, and every country has -- except iran. they're holding out for some unknown reason today, the russian oil minister is in iran to try to broker some kind of a deal so if the group can't ree on a meeting date, how might they agree on a new production plan or anything bigger let's bring in the head of oil market research and strategy at jpmorgan chase some people out there asking for a friend who may already have

flights and hotels booked. it's a pretty chaotic scene out there. but does it matter to the oil markets or is it really just a side show, this sort of opec worfare? >> no, this really matters this time around. we know the markets are not balanced once again. and this time, it's not because of supply. it's because of demand this meeting is quite crucial in many ways for opec to give out the right message ahead of time, no matter what the g-20 outcome is, they really need to give out a strong, positive message of solidarity as well at this point, and the optics around the current playing around with the dates is not necessarily working in favor of oil. >> i want to lay it out for our viewers. a lot of our viewers go to business conferences all the time imagine if one week from today, you're scheduled to go to a conference that's been on the books for a year, basically, that has 500 to 1,000 attendees, but for the last two weeks, you

don't know if the conference is actually going to take place on that day it's maddening it's frustrating, and it makes opec look a little weak, to be honest >> it does actually, there's two things about it that makes them look a little bit not just weak but also the thing is that currently markets are looking for that, as i mentioned, the message of solidarity opec is going to opec plus, is going to stand together, especially when the demand is starting to falter that is clearly not seen right now, especially with no support so far from iran in agreeing with the dates with other members. but additionally, i can see from the other side as well that opuopec is agreeing to dates which are more okay with, let's say, russia, which is outside of opec group of members so it's a bit strange at this point to see how they're not agreed, but at the same time, from optics perspective, this is not looking great. >> when they finally do meet,

which i believe they will, whether it's next week or in a couple weeks, it should be a barn burner, and we'll be there. thank you very much. appreciate it. all right, coming up, jamie dimon calls it the biggest threat to the u.s. financial system no, it's not debt levels not bad bonds, not even a trade war. what it is, and a rare look inside a group trying to prepare for it, next (osamah) cancer is... the ugliest disease mankind has ever faced. (henry) i thought it was unfair. when-- when you hear those words that you get diagnosed with cancer. (osamah) successfully treating it still remains one of the most enormous challenges facing us today. we realized that, if we developed the technology that could take 2-dimensional patient imaging and convert it into 3-dimensional holographic renderings, we could enable surgeons to dissect around the cancer so we can precisely remove it. when we first started, we felt like

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jpmorgan chase ceo jamie dimon said in his annual letter to shareholders that cybersecurity is the biggest threat to the u.s. financial system as a result, the company spends nearly $600 million to protect against cyber threats. joining us is technology reporter kate fuzinni who has been following the story, and congratulations, is the author of a new book, kingdom of lies, unnerving adventures in the world of cyber crime congrats on the book two young kids, i don't know how you did it is jamie dimon right is cyber crime the biggest threat to the banking system >> i tink it is, and i think it is from a bunch of different perspectives because you have a lot of nation states that have been trying to get entree into

the united states through the private companies and especially the banks. they want information about our richest people they want intel on whoever they can gather and countries like russia are fine with working alongside criminals so the criminals that are doing the attacks, stealing money, are the same ones working with the country to get reconnaissance you're talking about a threat that is huge >> not even -- i guess i'm thinking of die hard, stuck in 20 years ago they don't just want to break into the system and steal the money. they're poking around for other stuff. >> the banks will notice when you steal their money, surprisingly >> they don't like it. >> they don't like it at all what they won't notice is if you go in and stay persistent or stay within their network gathering information on whether it's what they do for trading or who are their biggest asset management clients, for years and years. that's what the banks are really most worried about there's lot of different things going on there >> any indication they're moving in the cyber criminals open the door, poke around, and then

leave, or do they open the door and hide in the closet in other words, are they remaining in those systems >> they have there's definitely evidence of that countries, many of them, including iran, china, north korea, have been able to do this there's really not much incentive, in fact, to do something that, let's say, it shuts off a system and gets people noticing because then the bank will find them and kick them out so they like to stay quiet, under the radar. >> what do we do to protect our -- do we start banking with the local bank again, putting 20s in a numatic tube? how do we state safe >> local banks as just as at risk as big banks. you're not going to get away from it there. if you're worried about your own money, tracking your credit report is the main way to go about keeping your own stuff safe >> are there enough workers in this industry to staff up enough >> there's a huge shortfall and it's a major problem, and it's getting worse. one of the issues is at the federal level, this used to be

sort of the recruiting ground for cybersecurity employees. so they have been having a great deal of trouble recruiting people the fbi has lost a lot of big cybersecurity people we're getting -- it's really hard to find people who are skilled in this field. >> and they have to pay a lot when they find them. >> they will, yes. >> which ultimately may lead to a safer cyber world, but maybe higher banking costs for us. >> definitely higher costs, at least for the bank whether they're going to ultimately pass that on to individuals is something we have to wait and see. >> cnbc.com technology reporter kate fazinni we appreciate you coming congrats on the book >> thanks for having me. >> we're looking at a market now that despite the trade war, despite everything else that's going on, remains in the green as well, of course, 48 hours until the federal reserve meeting on wednesday and the market maybe not hoping for a rate cut in two days but

signs that cuts are coming the dow jones industrial average up about 60 points right now that does it for the exchange. i'm going to send it over to "power lunch" a few seconds early. over to "power lunch." >> we owe you four, brian. four seconds thanks very much welcome to "power lunch. i'm tyler mathisen along with melissa lee, and new at 2:00, a big week for the fed and the markets, as brian just mentioned. will powell and company surprise investors with a rate cut? we will debate that, and the trade war continues to be front and center now on capitol hill. hearings today into the plan to tariff $300 billion worth of chinese goods. the sectors at risk. we will enumerate them for you and the chaos factory. known as silicon valley. apple ceo tim cook slamming big tech the fallout ahead as "power lunch" starts right now.