dollar to push, nike can get a lot of people to buy a lot of shirts and shoes >> always interesting to talk to you. thanks >> good to see you >> tats it for us on "the exchange." kelly is back tomorrow mercifully "power lunch" starts right now >> thank you, bill i'm melissa lee along with tyler mathisen new at 2:00, rally on. president trump set to meet president xi next week at the g-20 summit. will we avoid another round of tariffs? are we close to a trade deal the other catalyst, a surprising call out of europe about rate cuts and stimulus. could this put more pressure on powell to cut? >> it is called one of the most important moments for big tech facebook launching its own digital currency what it means for facebook and the crypto world "power lunch" starts right now >> hi, everybody welcome to "power lunch. i'm tyler mathisen nice rally at this hour. the s&p about 1% from its all-time closing high.

the dow about 1.5% from its own record close up almost 415 points earlier today at the session highs now up about 350 or thereabouts. the nasdaq on pace to close uv its 50 day moving average for the first time since mid-may let's get to bob paesani on the floor of the new york stock exchange with more on the rally. >> thhello. tariffs and trade are what moves things here's mario draghi at 4:30 in the morning our time talking about more stimulus potentially coming markets up 15 points here's president trump saying he's going to meet with president xi this is 15 points, another 15 points that's how you move up trade and tariffs and anything from the federal reserve we had emerging market etfs all up here. china, south africa, brazil, turkey, all up nicely. here in the united states, trade-related names. i'm talking about semi-conductor stocks like micron, example, all the steel names, ak steel, all up rather noticeably

dovish central banks is the big story, and it's not just draghi. draghi was saying those asset purchases they did a few years ago, they have considerable head room, they're going to buy more stuff. that's what draghi is basically saying australia's central bank cut a while ago, they said more likely than not they're going to cut more central banks are dovish, not just ours. speaking of ours, they have to thread a fine needle at the federal reserve tomorrow are they going to get ahead of what they perceive might be a slowdown like everyone else seems to think, and everyone says why are you getting so aggressive limited clarity on what the tariff impact is finally, i want to note the payment providers out there, today, you see mastercard, visa, green dot,thies do prepaid cards. all down they should be up 2% today they're high beta names. they're not, that's because of facebook there's concern, even though they're in the program with them, they could be a real competitor for that hot payment space. overall, though, market having a great day. back to you.

>> you have to check out western union as well,down on the facebook news. bob, thanks. >> to the trade war now and president trump says he'll meet with china's president xi at the upcoming g-20 summit kayla tausche joins us here at headquarters on where we stand >> hey, melissa. the situation has been described as a detente for the last few weeks with the white house giving china time to sort out their negotiating position ahead of the g-20 according to two ceos who have spoken with the president. president trump tweeting he and the president will have an extended meeting in japan. he said publicly the meeting could happen, but president xi has had cold feet so far what we could see is this yield another productive stretch of talks for several months, like last year's buenos aires summit did. but that's the bull case here. the threat of tariffs still looms large here hundreds of companies this week telling ustr tariffs would hurt their business, but their chief, robert lighthizer, told members of congress the outcome could be worse if they don't do that.

>> it's a long history of them violating the norms of intellectual property and similar norms. moving forward and not -- and making promises and not keeping their promises so we're in a position where we view ourselves as having the most serious problem you can face in the trade space. with nothing less than the jobs of our children on the line. and if you face that, then there's going to be -- there are going to be issues >> another one of the administration's trade hawks, vice president mike pence, is scheduled to give a speech on china on monday. there's currently a debate, guys, over whether that speech happens, and if it happens, just how hawkish it should be given the meeting is now scheduled >> is this the speech on tiananmen. >> this was the speech expected to happen several weeks ago, now it will happen at the wilson center on monday it was expected to be a sharp rebuke of china's record on human rights and religious freedom. we'll see what the content of the speech, if it happens.

ends up being. >> probably no more sensitive topic than tiananmen with beijing. >> kayla, thank you. president trump's economic adviser larry kudlow also speaking today about trade he also addressed new reports president trump considered demoting jay powell from his role as fed chairman this headline comes just 24 hours before tomorrow's fed rate decision eamon javers has the latest on the white house angle of this story. >> yeah, melissa bloomberg reported earlier today that their reporting was that the white house had considered the idea of demoting jay powell from fed chair to the fed board, and the white house counsel's office explored the legality of that i had the opportunity to ask larry kudlow on the driveway behind me about that report, whether or not it was true s and what the white house is saying about that currently. here's what he said. >> that story is -- i'm aware of it and the reason i'm not going to comment is it's a six-month-old

story. >> it happened six months ago? >> allegedly allegedly. i'm not going to confirm or deny anything we are not taking any actions to change his status. >> so that's a classic washington nondenial denial right there. larry kudlow saying it's a six-month-old story because it allegedly happened in february it's alleged and he's not going to confirm whether or not it happened but he's going to confirm it's not happening now kudlow, who would have been presumably in the loop in this in february if this was going on, not willing to say that it did happen but willing to say that it's not happening right now and they're not going to make changes at the fed. some question among experts of whether that's even legal. the law allows the president to remove a fed chair for cause but there's a great debate over what exactly for cause means does that mean he has to quit showing up for work or do something terrible or does that mean if the president doesn't like his policy on interest rates, he can remove him that seems to be a gray area right now.

>> thanks very much. >> powell under even more pressure to cut rates following talks of easy money emanating from europe, and steve liesman joins us with more on that a lot to talk about, steve >> yeah, there was an interesting chain of events this morning that unfolded today that could ultimately impact the federal reserve's rate decision. it began this morning when ecbd president mario draghi said more stimulus may be needed that weakened the euro sent the german bund yields deeper into territory, and dragged down the ten-year benchmark to 2%. it sparks a tweet also from the president of the united states, who said, and i quote, mario draghi just announced more stimulus could drop, making it unfairly easier for them to compete against the usa. they have been get away with this for years economic weakness just one reason why the respondents to the cnbc fed survey are now pricing in a rate cut. top reasons why, there we go

we asked people to see, on a scale of zero to 100, a portion of why the fed is cutting. economic weakness number one, followed closely by not hitting the inflation target market pressure up there, and the yield curve being inverted also pressure from trump, not a big number, but some people think it's a big enough factor when will the fed cut? about 14% think the fed will cut at this meeting. 29% say the cut will come between july and september, and more thereafter. whether that happens will depend on whether the u.s. economy falters, whether the trade war worsens, and also whether europe, china, and other central banks ramp up their stimulus it's a factor now. >> steve, thank you very much. >> you have the fed rate decision and jay powell's news conference tomorrow. steve will be there. he's getting on the train or the plane, talks of more stimulus in europe renewed optimism over trade talks with china let's put it together as we bring in michael farr, he has an up ed on cnbc.com on why he

thinks both the fed and wall street have it wrong jim beonco is president of beonco research. this should be fun becausia guys come at the rate cut question from really opposite sides michael, you go first. explain whew you do not think the fed should cut tomorrow and ought to hold its fire, maybe even indefinitely. explain. >> thank you, tyler. i think that the economy is in okay shape growth and the pace of growth is slowing. but basically, you've got 96.4% of the potential employed work force working. you have more jobs out there, people wanting job openings by almost a million more job openings than you have people who are looking for work you've got full employment number one on the fed's mandate. you don't have robust growth or a lot of inflation but you have gdp growth around 2%, and maybe inflation slightly under that if the fed's job is full

employment and a growing economy, declare victory have the july 4th parade for jay powell i mean, we've got a decent economy right here we should not respond to these quick headlines and the, you know, we saw the markets drop. mexican tariff threats we have already forgotten about mexican tariffs. markets tanked and we had fed people saying maybe we need to do a little more to keep all of this expansion going fed needs to be data dependent i think they made a mistake. i think the market's volatility doesn't jive with any of this. in the fish market, you ignore the screaming and yelling and pay attention to the price of fish the price of fish isn't bad right now. >> let's go to jim to talk about the price of fish and more you disagree you think the fed should cut you fear they won't. why do you take the opposite side of this when michael says, hey, we're doing pretty well the fed is meeting its dual mandate. what are we worried about? >> inflation there is no inflation. if you look at the forward measures of inflation, the

university of michigan survey of asking consumers where it's going be in the next five to ten years, all-time low. if you look at what's happening to inflation in europe, all-time low. if you look at other measures of inflation, multi-year lows these are forward measures of inflation. we can't hit the target even at 3.6% that's why the yield curve is inverted it is sending a powerful signal to the federal reserve that 2.5% interest rates are too high in this world especially when europe is at minus 40 basis points and about to cut rates that spread is too wide right now. our rates are too high you can bring them down and continue to have full employment, continue to have a strong economy, and not have inflation. that's what the market's assessment has been and i think it's right >> michael, jim had mentioned the lack of inflation out there. you had mentioned, michael, the slowing economic data. why not cut now? i mean, there's a fabulous quote in a bloomberg article today

citing alan greenspan, and he said often times when you look back in hindsight at the last sort of cycle, you'll notice that the last move was an unnecessary move in hindsight. and that last move in this one would have been a hike so why not go back why not cut rates at this point? >> i think everything jim said, look, he's a very smart guy. he's right i just think that particular train of thought is early. we theed to be data dependent. we are seeing some wage inflation. i think that that wage inflation could be very positive for the economy. it's got a lot more money into the middle class earners' hands. that can generate some organic economic growth. so my point is, yes, i see everything he sees but i think we have to be patient. this federal reserve, this process we've gotten into where the federal reserve is running to the microphones every time we see one piece of weak data, i think is wrong and i think markets are getting the wrong reaction

it's a pavlovian reaction that doesn't make sense to me so a little bit of patience, let's see the data develop through the summer i don't think they're going to cut tomorrow at all. i do think they're going to quit their selling of their portfolio, they might announce that, but i would fade this fed meeting if you're betting on great news out of it i think there's more room for disappointment probably than there is for upside excitement >> jim, the last word is yours why don't you respond to what michael just said, and if you could weave into your answer the answer to this question. why is no inflation a worry? >> no inflation is a worry because if you start at no inflation, the next downturn, you sink into deflation and jow a real problem, especially in the banking system as well alan greenspan was right, the last move is always the wrong move, and most fed studies show that the best way to conduct policy is to come early and aggressive it's easier for the fed to cut rates now or july.

and if that's a mistake, raise them later as opposed to drag your feet, drag your feet, and then you're too late and playing catch-up you'll never be able to catch up come early, come fast. and you can always adjust on the fly. don't wait, wait, wait that's what they always do and it's always a mistake. >> jim, if you think alan greenspan is right, the corollary to that would be a 50-point cut right? that's how the last two easing cycles started, with a 50-basis point cut. >> 50-basis point cut wouldn't be a bad thing i mean, i think this is a little too much to ask for this fed to do but again, if you do it and everything is fine and there's some whiff of inflation, you can undo it. if you adopt that kind of mentality, i think you wind up with less monetary policy mistakes than the current policy of wait, wait, wait, wait some more, and then it's too late >> we have to leave it there michael, the record will show you were shaking your head vigorously >> a little patience just a little patience is all we need >> thank you very much, as always good conversation. we appreciate it >> thank you coming up, we're all over

this rally the s&p 500 up more than a percent. technology, industrials, financials leading the way we'reust about 1% away from record highs, by the way facebook making a big move, launching a new digital currency will it be a game changeer for the company and for big tech, or should you be worried about your data and your money? "power lunch" will be right back dear tech, let's talk. you blaze trails... but you have the power to do so much more. let's not just develop apps, let's develop apps that help save lives. let's make open source software the standard. let's create new plastics that are highly recyclable. it's going to take input from everyone. so let's do it all, together. ♪ ♪ let's expect more from technology. let's put smart to work. ♪ ♪

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facebook shares are off their highs after the company officially announced its move into digital currency. we'll get more on what it could mean for facebook, but first, let's go to julia bornstein for an explanation of how it will work hi, julia. >> well, tyler, facebook wants to make it easy to send money around the world, but facebook is not going to control the new digital currency that it announced today, called libra. this new currency will be managed from an association based in geneva, switzerland the currency, libra, will be based on an open-source blockchain so anyone can build applications on top of it. unlike bitcoin, it will be backed by real money a basket of currencies to limit its volatility facebook's play here is a new subsidiary it's creating called calibra, a digital wallet that will live on top of whatsapp and

messenger as well as a stand-alone app. this new app aims to enable anyone to securely save money for free and to send and receive libra instantly around the world with no fees down the line, facebook plans to ad other financial services such as loans, which would generate new revenue streams for the social media giant now, facebook says it is working with regulators to get calibra approved and it experts the currency as well as its app to launch in the first half of next year melissa. over to you. >> julia, thank you. the commentary coming out of wall street on facebook's move for digital currency has been bullish. let's take a closer look at what it means for the social media giant. joins us is jusuf scully he published a new report following facebook's aniensment, also joining us is brian kelly it's interesting that facebook had run up into this white paper announcement, and now it's basically flat but you see this as a key way to

sort of monetize what had been the areas of the business that had not been monetized yet, and that would be the messaging areas, including whatsapp. how do you see that increasing the total addressable market >> sure, thanks, melissa first of all, this is really just step one in a long journey. we don't have all the details. it's going to take a while for us to get the details between now and early next year when they finally address some of the unanswered questions yet that said, as you said, we do see it as an incremental positive for the stock we see it as an incremental positive for shareholder value really as an option for what facebook could become over time. messenger and whatsapp have been two divisions that have done extremely well on user engagement, user acquisition they both have over a billion users. but from a pnl standpoint, for a

company acquired for $19 billion, it's still not generated any money or hardly any money. this is one way which i think is a very smart way of positioning facebook literally at the epicenter of this whole blockchain revolution, which i think over time should start helping it manage or generate money from things like remittances, just as an example. this is a $600 billion to$700 billion market, where india is already doing something like $60 billion or $70 billion those are done the traditional way. what's really interesting is if you look at whatsapp's market share of india's smartphone, it's roughly 56% so granted, it's being used for communication, for p to p transactions or money transfer, but over time, we do see india as a great example and remit nlss as an example of where this application could eventually go. >> isn't this what bitcoin was

supposed to be david marcus, the head of calibra, facebook's initiative, was talking on "squawk box" today, and emphasized the peer to peer aspect, the ability to send money effortlessly, frictionlessly across borders. in developing countries. and you know, that's, i thought, was the promise of crypto. >> and the goals for crypto, the goals for bitcoin, let's just use bitcoin as a broad cryptocurrency proxy, the goals for bitcoin and the goals of what libra are doing are very similar. they're very similar the approaches they have taken are completely different that's the distinction between these two. it's very good for crypto in general because we're going to get a lot of awareness about it. people will be able to move things around, see what it's like but it's very different than the value proposition that bitkaine has versus what libra has. >> so, let me ask you, i'm a little confused on how this would work because it's just above my level of comprehension.

is it a breath mint or a candy mint is it a payment system or a currency, or is it both? >> well, i mean, the way they're positioning it, it's based on a basket of currencies which allows it to stay relatively not only secure but also the very ability is not going to be gray. people will be able to use it as a payment method people should use it, be able to use it potentially as a store of value. so you know, i don't know how the regulators are going to loo at it. that's still something frankly that needs to be hammered out, not just in the u.s. but around the world. i would say over the next 6 to 12 months, the regulatory environment and how they define it is probably one of the most important ones >> bk, you seem to make clear that you believe this wouldn't necessarily displace or compete with existing coins like a bitcoin, but what does this blow out of the water honestly, ripple and moneygram

announced an agreement it seems that sort of quaint compared to what's going on here >> yeah, i mean, i think certainly if you're ripple and you're moneygram or western union, you have to sit up and take notice of what's going on with libra today and what facebook has done. they have created -- it's an iteration, tyler just asked what is it, is it paypal? it's an iteration on paypal and venmo, and you'll have programmable money things we haven't been able to do before. so yeah, if i was western union, moneygram, or anyone else like that, i would be very concerned today. >> all right, gentlemen, thank you. great discussion >> if this beyond meat rally is beyond you, you're not alone short sellers have been losing hundreds of millions of dollars betting against the stock, beyond meat. but the stock is pulling way back after crossing $200 this morning. look at the decline there. where does it go next? plus, in less than 24 hours, we'll get the fed decision on interest rates reports coming out saying the

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feel that? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow. welcome back to "power

lunch. i'm mike santoli at the new york stock exchange beyaunt meat seeing a huge reversal today it was above $200 at the day's highs before the stock turned negative even after that turnaround, the stock is on fire, up nearly 600% since its may ipo. with a market cap of more than $10 billion, that makes it larger than 15% of the companies in the s&p 500 matt and nancy are your trading nation team today. so matt, what kind of technical rules can you apply to a stock that's less than two months on the market, it's up 600%, it trades on an average day, all the available publicly floated shares how do you make sense of that? >> well, you can't really look at the chart when it's only two months old you have to look at other issues there's no question there's froth in the ipo market. that could continue for a while. there are reasons to be concerned. number one, the number of stocks that were unprofitable in the 12 months leading up to the ipo is

back to the levels we saw back in the bubble of 2000. you know, we also have the ipo etf has outperformed the s&p by quite a bit over the last few years. up 100% since early 2016, which is up almost twice as much as the s&p. but the thing that concerns me the most is that a lot of these companies are not brand-new companies like they were back in the last bubble. they're companies that have been around for a while when smart people sell their companies or take them public, it's usually a sign of a top think of goldman sachs went public in 1999 right before the top. blackstone in 2007, right before the top. and the commodities trader glencore went public in 2011 before the bear market and commodities started. that may not necessarily mean we'll have a top of the markets in the next week or month, but when smart people sell, i get worried. >> all right, so that gives you some kind of sense of where this ipo market might put us in terms of market sentiment and supply and demand but nancy, if you try to look at

beyond meat, you have something like 30 times expected revenues for 2020 i mean, it doesn't really fit into any kind of valuation metric how would you assess this company right now as an investment >> yeah, that's the problem, mike i mean, look, i think matt is absolutely right on this, that these companies have been ing cubating and a lot of money has been made already. but i have been wrong on this particular one because it's up almost 600% or just over, but i worry about valuation. i don't know if you have eaten manufactured meat. i don't know if we call it plant-based meat, but it's a different experience at some point, i think the enthusiasm will wane, and this will be valued just like any other food company and it's trading at an exponential multiple to sales compared to the rest of the group. so i'm wary. i have been wrong to the tune of 600% but i can't -- i have nothing to hang my hat on

>> right well, already a lot of folks are short this thing maybe that's one of the things fueling its rise a lot of enthusiasm for the overall market clearly running through this one little stock. thank you very much. for more trading nation, head to our website or follow us on twitter at trading nation. melissa, back over to you. >> mike santoli, thank you ahead on "power lunch," trump and xi set to meet to talk trade. is a deal still on the table >> plus, income instability, why the jobs of the future could make your wages more volatile. >> and a tech council survey the surprising results ahead on "power lunch." >> and now, the latest from tradingnation.cnbc.com and a word from our sponsor. >> many people say don't fight the fed, but that doesn't mean you have to fear the fed if you're long-term investor, don't let a fed announcement derail your long-term investing plan however, if you're a short-term trader, you may want to consider waiting until after a fed

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i felt completely helpless. trashed online, my entire career and business were in jeopardy. i called reputation defender. they were able to restore my good name. if you're under attack, i recommend calling reputation defender. and consider joining their groundbreaking campaign to give every american the right to remove old, inaccurate search results by going to righttobeforgotten.org. if you have search results that are wrong or unfair, call reputation defender at 1-877-866-8555. here's your cnbc news update at this hour

president trump's acting defense secretary patrick shanahan will not go forward with his confirmation process so he can spend more time with his family. the president says he will name secretary of the army mark esper to be the new acting secretary of defense >> senate minority leader chuck schumer says election security must be a priority for 2020, but that majority leader mitch mcconnell is ignoring the problem. he told reporters the issue is just one more thing that is ending up in mcconnell's legislative graveyard. >> director wray says things will get a lot worse in 2020, and the republican senate leader mcconnell just stands there and twiddles their thumbs and says almost, come on, putin, let it happen >> the second oldest person in the world has died he passed away today in southern italy where she was born in 1903 she was just two months younger than the current oldest living person in japan. good, good long life

that's a cnbc news update at this hour. >> courtney, thank you 90 minutes to go until the closing bell rings and the rally is still firmly there. look at the dow, up 1.5% the nasdaq is higher by 1.6% we're watching very closely the s&p 500 is up 32 points, 2922. it's just over a percent away from a record high, and that level would be 2954. >> the oil market closing for the day. let's go to dominic chu at the commodity desk >> prices up by about 4% $53.96 crude prices, $62.16 that's up 2%, for the benchmark u.s. measured the best day since january, all it took was president trump tweeting that progress is being made with trade talks with china and then, of course, european central bank head mario draghi putting more monetary stimulus back on the table if inflation does not pick up a near term reversal, but not enough to curb the downterm in oil prices due to ample supplies

all over theplace, especially in the u.s traders turn their attentions to when opec and their partner countries will host another meeting to help balance supply and demand those meetings could happen in mid-july in vienna back over to you >> thank you the fed and the trade war front and center for the markets today. policymakers kicking off their two-day meeting on interest rates in d.c at the same time, new reports that the white house explored demoting chairman jerome powell of the fed, plus, president trump said he will meet with china's president xi at the g-20 summit to talk trade with us to break this down is austan goolsbee. and james pethakokus so much to talk about. let me start with this the president tonight will kick off his 2020 campaign down in orlando. if the economy stays stable, and if the economy was the only thing that really mattered to

voters, would the president be elected? >> i think if all that mattered was the economy, the models say that the president would be re-elected i think the problem that we have is trying to figure out do normal rules apply so normally, the incumbent in a strong economy, that's a major boost for them that's also usually true at the midterm, and the economy was going well in 2018, and the president suffered a pretty historic defeat. so i think we're trying to weigh those two things off >> jimmy, respond to what austan just said, all things equal and if the economy stays where it is, does the president win re-election? if so, how do you account for what he just described, which is a really major defeat in the midterms last year >> yeah, well, obviously, it's not just the economy and actually, i think if you look at the research, the correlation between economic

growth and approval ratings isn't what it used to be we have moved, you know, that was really a correlation we saw since the great depression it's been less true in recent decades. certainly, the president is count on that. they call it their 3-3-3 plan. 3% growth, 3% wage growth, 3%-ish unemployment rate that should be enough. clearly, that will not be the case it's not transferring into a strong approval rating so i think there's great risk that he does not act like the traditional incumbent, who usually wins, and with a good economy, usually wins. on the contrary, extraordinarily close election this time around. >> let's talk a little bit about the -- excuse me -- the fed meeting tomorrow and whether you think the fed will or should cut interest rates and how you react as compared with how the president reacts to the idea that the ecb may be ready to add stimulus into its

pipeline >> well, look. i have been saying that i thought despite what the president says in kind of bluster, i thought there are definitely some soft spots in the economy, and that when the fed was getting confident that they were going to be able to raise the rates four times in the year, i did not think they would be able to do that i think now, ironically, it's the president's publicly attacking the fed and demanding that they cut the rates is kind of the only thing preventing them from cutting the rates. i think they objectively, if they looked at the data now, would be inclined to give some relief but in the back of their minds, got to be this feeling of, well, geez, do we want the market to think that the president is bullying us? and that the president publicly was discussing whether they should demote the fed chair. i mean, it's totally inappropriate and outrageous we would lose, we would -- the

dow would probably be off 5%, 10% in a day if the president actually moved to try to demote the fed chair. so i don't think that they'll say much more about that >> jim >> yeah, i think clearly that would be a very bad day for the market if the president does something that, really, is almost incomprehensible to demote the fed chair. i'm not sure how much that's actually influencing what the fed is doing the fed has plenty of reasons, i think, to go easier. i think the president may provide a reason, but that's through this trade war, which i think is weighing down on the economy. i think it's weighing down on business investment. i think it's creating a lot of uncertainty. the president may give the fed a reason to go easy, but kind of unintentionally. >> thank you very much we'll know more tomorrow, roughly this time. thank you both very much appreciate it. coming up, the way we work is changing. people aren't spending 40 years working for the same company

they're not? so as we change jobs more often, our income isn't always so stable we'll explain why that matters to our economy so much after this

technology has disrupted many aspects of our lives frk from how we watch tv to how we get a ride our next guest says it will shake our view of full-time views. the professor joins us as part of our partnership with acorns, the savings and investing app. he makes the case to address income instability as the workforce shifts from full-time to free-lance. welcome. >> delighted to be here. >> how many more people as a percentage, however you want to say it, are working free-lance, and are they doing it by choice as opposed to by necessity

>> at this point, about 20% of the workforce is full-time freelance, the only income they generate is from freelance work. but an additional 20% of the u.s. workforce is supplementing income from a full-time job through freelance work and so the folks who are doing it full time, like that first 20%, a vast majority of them are doing it by choice a lot of the second portion, people who aren't earning enough money from a full-time job, are probably doing it more by necessity. >> one of the problems obviously with freelance work is there can be spells where you're really flush with cash and it's coming in and then there could be spells where you're not working. >> absolutely. >> in a full-time salaried job, those spells where you're not working as hard are covered by the fact you're getting a paycheck whether you're working hard or not. here, you don't have that. so what, if we go more and more to freelance, what is a way to paper over those gaps, those dry

spells >> a great question. see, i think we have gotten used to in the last few decades of the employer sort of playing that role of insuring, of smoothing over the gaps. doesn't matter how hard you're working, you still get the same paycheck you're giving your labor and talent in exchange for stability. >> melissa and i are always working at 100%, more than 150%. >> but some of these people behind us, we don't know what they're doing. >> nyu knows i'm always giving 100% as well, but i think what we have to decouple is who you're providing your labor and talent to. and who is smoothing over your, like, you know, the ups and downs in your contributions. and what i'm calling for is a new form of income insurance something that allows you to do freelance work, and more and more of the workforce is going to be freelance. we're going to have large companies using platform

workers. you'll have people running consulting and legal businesses through legitimate platforms, to be able to sort of look back at your history, allow you to pay a little bit of a premium, and then sort of set a floor on how low your income can go every month so that even if you're a freelance worker, you can still commit to a mortgage payment, commit to a college fund >> isn't this called a savings account? if you're a freelancer now, isn't that what you do inherently so why does the government need to step in and smooth it over for anybody? >> well, i think it's because the amount of volatility that we have seen in income streams has been growing steadily over the last 20 years. and it's one thing to say, well, it's your responsibility but it's another to say here's an easy way. this is good for society if there is income stability, if people don't default on their mortgages, if they continue to pay the college funds. so much like the government provides incentives for you to

save for retirement, i think it's a good idea for the government to start providing incentives i'm not saying they should - >> kind of like a 401(k) in other words, you might put in pretax money into an account that could then in an emergency become your cushion. >> yeah. >> or something like that? >> yeah, and like if you start to abuse it, then yourcushion sort of -- either your premium goes up our your floor goes down but you know, i think we got used to a world in which the full-time employer was playing this role. and we need to look forward and say well, maybe financial intermediaries can start to play this role, even if people aren't committed to one particular institution. >> have to leave it there. thank you very much. appreciate you being with us you can read more about this idea at cnbc.com/investinyou as a reminder, nbcuniversal and comcast ventures are investors in acorns. >> our tasty menu is coming up

next today's specials, robocalling 911. the rise of virtual celebrities in a political catastrophe "power lunch" back with you. [leaf blower] you should be mad at leaf blowers. [beep] you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. but you're not mad, because you have e*trade which isn't complicated. their tools make trading quicker and simpler. so you can take on the markets with confidence. don't get mad. get e*trade and start trading today.

today, life-changing technology from abbott is helping hunt them down at their source. because the faster we can identify new viruses, the faster we can get to stopping them. the most personal technology, is technology with the power to change your life. life. to the fullest.

welcome back to "power lunch. here's a taste of some of the stories we're watching robo calls are not only inconvenient but they could be creating a health crisis the calls apparently are overwhelming hospitals and tying up emergency lines one day last year, tuff's university medical center registered more than 4,500 robo calls in two hours many of them are scams there's a solution here. >> which is? >> called banam. >> they are getting smarter and smarter though >> they come from azerbaijan >> crazy places that i don't have any friends in maldova or any place like that, but apparently these robo calls are finding a way to get to hospitals. >> well, what makes a good instagram influencer constant camera readiness, a thick skin for online trolls but it turns out an influencer doesn't necessarily have to be human. model bella recently appeared in a commercial with susa, a

virtual influencer with 1.6 million ins guam followers it's amazing >> there she is. >> and last year fashion label commissioned a diverse mix of digital models >> does the real person have a relationship with the virtual person >> what kind of relationship are you talking about? >> i believe there was a relationship that was hinted at there. >> a friendship? >> something a little deeper than that. >> more than platonic? >> yes all i know is it's cheaper than a real one a pakistani politician experienced a major technical issue during his news conference livestream the minister was broadcasting on facebook live when the platform's cat filter was accident -- who knew there was such -- the cat filter was switched on, ladies and gentlemen. it didn't take long for the internet to pounce all over this he was blissfully unaware.

[ cat soundeffect] >> i think this is a good feature. i don't know what hair and makeup things. >> cat-tastrophe cnbc reveals ruqs of our results. a few key takeaways. most would like to see more enforcement of u.s. patents and more ip rights come out of the trade deal and nearly 70% support data privacy regulation here on set is one of the members of the tech council chief investment officer of zoom video communications >> chief information officer >> chief information officer, excuse me. good to have you with us regardless of the title, harry in terms of those three issues that we cited, which one concerns you the most? >> i think cyber cyber is a continuous threat i mean, when you look at the world that we came from, we were protected on the perimeter

and now with mobile, we've got all these clouds, you've got the internet of things we've got 5g we've had ransomware the threat landscape is just getting so incredibly difficult. >> is it up to, in your view, the private sector to defend itself, or is there a government role, would you believe in the government if they said, look, we're going to come in andtry to defend us >> i think that it's going to be a multifaceted approach much like we do in security, it's a multisecurity approach there isn't a single solution to the problem. >> this is the thing that stands out to me in the survey. support for nationwide data privacy regulation nearly 70% of the tech council says they favor that and 72% say they're not confident that the u.s. government could protect consumers' data privacy. so why the heck in the one hand would you say government come and protect me, and on on the other hand you say i don't think they can protect me. >> because, tyler, it's a really, really hard and complex problem. the number of dimensions that

you need to think about are just dramatic and so you think about, like -- think about your local police force where we live. how can they protect you from your home? they can't they patrol the streets. and they will give you a heads up if something bad is happening in your neighborhood that's the way it is in cybersecurity. >> for your company, you have a cloud platform for -- >> yes >> content sharing, and i wonder if a privacy regulation would impact your business >> i -- um, maybe, maybe not but at zoom we take security incredibly serious it is sort of right up there at the very top we think about this all the time much like we think about reliability and functionality, we think about security because of the impact on the clients that we have on our platform >> but from your standpoint, is cyber a more direct threat to your business? >> i think it's a direct threat to many businesses >> what would a national cyber

privacy regulation look like, and my sense is that europe is way ahead of the united states on this. >> yeah. i think you are absolutely right. europe but i think people need to have options where they can sort of opt in or opt out. so there needs to be a flexibility from that perspective too. when you look at sort of two-thirds of the world's population, as an example, are millennials and genz and they grew up in a different era than what we did their expectations are different than how they conduct their personal lives is dramatically different. >> are they more concerned about privacy or less concerned than old fuddy-duddies like me? and i tend stupidly to check off, yeah, i'll tell you everything i'm doing >> i think they're less concerned than sort of the next generation up sort of like their parents are. but when something happens to them that triggers a change in behavior, and i've got lots of examples >> the first time you get burned

you do something >> exactly, once bitten twice. >> it's done quite well, one of these very high-growth companies. interestingly all of your underwriters have a neutral rating on the stock. and the last conference call, last earnings call management talked about a ramp-up in investment on that zoom phone service. where are we on that and how should we think about that and when we roll out >> we announced this in january. we do one-to-one and one to a million, and anything in between. so we're really sort of doubling down on sort of how we support meetings' efficiency and it was u.s. and canada, now we are piloting with australia and the u.k. and we fundamentally believe that video is actually the new voice. but when you look around here, see you guys live this every day. it's absolutely true when you look at our road show, we conducted our entire road show using zoom when you look at

our earnings score, we also did that >> exactly >> and these things have never been done before >> harry moseley, cio of zoom. big day tomorrow >> big day omorrow, the fed. and we will learn more about the track of monetary policy >> thank you for watching "power lunch. >> "closing bell" starts right now. welcome to "closing bell." i'm sara eisen down here at the caterpillar industrial it's one of the best performing groups as the overall stock market surges into the close in hopes of a u.s. china trade deal good afternoon to you from me 59 minutes left, we'll telt you everything an investor needs to know before the close let's start with what is driving the action president trump tweeting he is talking to president xi, and a g20 meeting is imminent. industrials and tech are leading at the market, risk on at the moment we are up s