>> good stuff. does it for us thanks for watching "the exchange" with kelly evans begins right now hi, everybody. here is what ahead lennar hit after tariffs said they were hurting business business shifting to vietnam and we will dive into all of that. another blockbuster pharma company. we're going to look at why the market is taking coolly to that. we're not building nearly enough homes what does it mean for buyers and prices we'll find out we begin with breaking news from fed chair jay powell and dom has the headlines. >> he's speaking at the council here in new york city. the remarks started just about now. in it he will speak for the first 10 or 15 minutes with prepared remarks saying the fed

will act as needed to expand the expansion in the united states also that trade and global growth are still among the big uncertainties in the market and the economy. but that the feds baseline outlook remains favorable still. also, that the economy has performed reasonably well so far this year but that they're still grappling over whether uncertainties like we mentioned before will continue he also goes on to say that policy should not overreact to any single data point and that inflation is expected to rise at a slower pace than previously thought. there were changes to the policy statement that were made and that they were significant back at this last fed interest rate discussion as you are seeing there, we have "new york times" and neal irwin getting ready to preside over this q and a session and prepared remarks i would point out something interesting, kelly jerome powell will talk about fed independence saying the fed is insulated from short-term

political pressures and congress chose to insulate the fed in this way because it had seen the damage that often arises when policy bends to short-term political interests. perhaps directly addressing kelly, some people in the administration or the executive branch directly. we'll bring you more details just to give you an outline. 15 minutes of prepared remarks and 15 minutes of q and a and then 30 minutes of q and a from the general council and we'll bring it to you and very interesting response here. we'll send things back over to you. >> we're seeing an immediate market reaction to this. for more on that, let's bring in bob sprx isani and craig callahan bob, let me just start you is it stocks are at session lows effectively right now. the dow is down 150 points and the dollar jumped a little bit sort of a hawkish, knee-jerk reaction to this >> bullard came out and said a

good time for an insurance rate cut. is that 25 or 50 and then qualifies when a situation doesn't call for situational and the dollar moved up and that's consistent maybe we'll get the 25, but we're not going to get a 50 and the market on this sugar high wanting more rate cuts, kelly. >> rick, what would you add to that the dollar had softened substantially. i was looking at the headlines this morning the ten-year yield below 2% and now we're unwinding some of that >> yes i talk and we're going to look at intra day of two year 167, 168 and bullard basically said 50 is too aggressive, it started. the testimony that hit, the keynote of mr. powell definitely moved this a rittlittle bit the ten year moved over 2% and the dollar index, as you pointed out was up fifth of a cent it all gained nicely it all makes sense

we can talk about easing and i look at it as the fed has nine-quarter point insurance rate hikes to think they'll give two way and one move 50 basis point. certainly it could happen. the market has it built in i know that chorus my own personal belief that you're not going to get a 50 and the context of the times we're living in are different. now, whether they ease at all is another conversation to be had and i think chairman powell at least texts i have seen without q and a moves in a line that is under consideration and still not necessarily a foregone conclusion and if it doesn't occur at the next meeting, maybe it's about time that the markets have to meet with their maker with regard to what they built in and what their demands are and xhaktly what that means for what the fed's responsibilities are. isn't a third pillar that the markets have to get what they ask for. >> craig, let's bring you in on this from the practitioner's point of view. you think the fed made a mistake with the last couple rate hikes

looking at market conditions what is your read on things here >> well, in december the treasury bill rate went up right near 2.5 it hit 2.48. in some ways the open market is doing the fed's job for it the treasury bill rate is now down to 2.17 that rate has come down closer to where we think it should be and that's where key bills should be equal to inflation and the best inflation forecast we see are calling for about 2% inflation the next two to three years. >> so, where you sit now, you don't necessarily think the fed itself needs to respond by rate cuts >> i think a quarter point cut in the federal funds target will be appropriate and just right. >> okay. we'll see if we get there. bob, let me just come back to you because james it seems the market is looking to him to be on the dovish extreme wing of things the fact that he is saying i am not ready to go 50

is that why people are focusing on, you know, this is coming from him and not coming from somebody who leans more hawkish? >> powell went on to say strength of the global economy you saw what happened this morning, kelly consumer confidence, lowest since september 20127. home sales at a five-month low the softer data is definitely supporting at least the 25 basis point rate cut if we get more data like this, even the hawks are going to start screaming pretty loudly. >> craig, how would you be positioned in this market then we have stocks pretty much at all-time highs, even as we sit here debating all this by the way, the last time the dow was at these levels was in october when the ten year was at 3.25 >> we measure the market to be 15% below fair estimate value. we expect stocks to move higher

over the next year there are people who always instinktually sell and take them out and buy buy their shares before we move the market higher >> do you see froth you will be avoiding >> no, pretty broad move and we see bargains across the board. we do expect consumer discretionary and technology to lead >> so, you still see bargains. rick final observation here. i don't know what the market is priced for exactly right now if we had a ten year that was over 5% in 2006 when we were heading into somewhat of a depression, what are these levels supposed to tell us now how have we gotten here ten years into the recovery? >> i tell you how we have gotten here mine is 40 basis points lending rate with regard to what is going on japanese rates negative and brexit issues and all of this has added up to create a global demand craze for saand the comms

could lead us closer to market expectations that's what i hear him saying, but let's watch the numbers as they come out. bob is right, there has been deterrieration but to think things couldn't change this many weeks in front of a meeting, i don't buy it >> if we get any further comments from him as the event goes on, we'll bring it to you our other top story today is botox buying allegrgan under pressure to reduce pressure on its blockbuster drug charlie grant and meg is here, as well. meg, the reaction shares is fascinating because pretty bad the company said they wanted to do something transformational but investors don't want that or think it is the right deal >> investors are scratching

their heads given that allergan was under pressure for a long time people questioning the direction where growth was going to come from and see this as a way to stem the gap from losing that huge drug humira in 2023 that is the biggest drug in the world and they are facing competition in the u.s. in a few years. they needed to figure out a way to replace that. with allergan you get the $3.5 billion botox but abbvie investors don't like this at all. >> you're losing $19 billion in revenue replacing it with $3.5 billion and other things happening, too is it not a good synergistic fit or is the price too high >> i think this reflects the reality of the drug industry that returns are not there the way they were at the start of the decade phaarma made tremendous progress in a number of key categories and they've accomplished that and the sales and profits are there. generating growth is harder and harder and we've seen

spectacular failure in alzheimer's and other big potential categories this year and i think abbvie, any time you pay 45% premium for an asset that is not growing, you're going to get this kind of reaction but i don't really see a better move that abbvie had this is the result of having a weak hand and a lot of weak hands around the industry from a growth perspective >> maybe that goes back to the point of their size. we've seen deals on the smaller side of things and other areas if you want to replace a pipeline this big with something, it's pretty hard to do >> how do these companies get growth allegren built in a series and to act vshs buying allergan. so, how did either of these companies grow without doing a mega deal like this. they considered a number of different options to try to replace the hiurmira and they

thought about doing smaller acquisitions and that is what the street likes if you look at what pfizer did, people like those kind of deals because bio tech signals growth. this kind of thing is just plugging a revenue hole and people aren't excited about it >> should they have waited for the smaller fish, charley. >> by 2023 these gene therapy, start-up assets may or may not have reached the market but the debt is very real. they need certainly to plug that revenue hole and i get that is unappealing to stock holders don't be surprised if another rival does something similar down the line. >> that was going to be my quick final question a number of large deals over the last six months or so in this industry and is more to come >> i think so. i think so if activists are unhappy, they should plan on getting busy. >> so to speak >> charley and meg, thank you

very much. here's what's still ahead on "the exchange. coming up, why vietnam could be the real winner in the u.s./china trade war we have a special live report from hanoi plus, a major red flag for the u.s. housing market. and disrupting the retail gas industry meet the company that will come to you to fill up your tank. man: stand up if you are a first generation college student. stand up if you're a mother. if you are actively deployed, a veteran, or you're in a military family, please stand. the world in which we live equally distributes talent. but it doesn't equally distribute opportunity, and paths are not always the same. i'm so proud of you, dad! man: i will tell you this, southern new hampshire university can change the whole trajectory of your life.

welcome back to "the exchange." the u.s. trade deficit with vietnam was around $39.5 million with companies racing to vietnam to produce their goods that deficit is bound to get larger carl, you have been getting a first-hand look at the businesses on the ground what is the state of play over there? >> kelly, talking about vietnam as a hedge against china you have to talk about apparel and footwear one and two exports to the united states only after electrical and we got into one of them a couple hours north of hanoi and got to see what it would take to produce at scale a nike fleece or an air jordan track suit

it all starts with raw materials which despite vietnam's growth in textiles still heavily relying on china close to 90% at this factory once the material is inspected for quality it is spread out and cut into smaller pieces where it will get ready to get sewed. this will end up as a component in the kid's hoodie. they try to use every stitch of material so that nothing goes to waste. less than 1% which will eventually get recycled. and it all leads to this the production room. 34 different lines, each with their own product and real-time targe targets. 1,800 workers under this one roof alone the sign reads, we love the factory as our home and we love the machine as our children. a big part of this is keeping employees motivated and happy. this is one of the lines where they're making a fleece for nike workers here make about $280 a month, well above the country's

minimum wage of 170 and when they're done with the piece they hit a green button and that tells the production line whether they're on track you can see the famous triple stripe that says adidas right across from stacks and stacks of finished nike fleeces, air jordans. all of this is going to get boxed and pressed and screened and get ready for shipping here you can see the finished product getting screened for pieces of metal. small needles, anything that might have gotten into the clothes during production. most factories screen for metal once, this company flips it and screens it twice these boxes of finished goods are headed for about a $35 day trip on a boat but they tell a larger story of a country now trying to make its move in global production. kelly, at that factory 15,000 employees across all their facilities, but of the 15k, 3,000 were hired in just the past year. it gives you a sense of how much

they're going to have to work on labor here, labor retention and issues that we talked about with china 25 years ago >> absolutely. your access there, carl, is incredible to me i mean, what they're wanting to bring you and willing to show you. do you think that's because vietnam is trying to embrace this moment to say, yes, come to us can they handle this kind of capacity growth. you hire 3,000 workers and growing by 20% a year in their workforce. >> i agree i think it says a lot about their confidence as an economy and says a lot about their confidence to handle new business and i also think that they're sort of in the seller's market and that if there is any ramifications for letting us in and letting us see it, i think they feel they will make it up in new business there's no fear this trade war is going in any direction but their favor. >> carl, what time is it there right now? >> it is 12:20

>> a.m that is a long day carl, we really appreciate it. this is great stuff. i'll see you again next hour >> all right, thanks >> carl in vietnam all day and night for us coming up, a shocking investigation into product liability issues in the u.s. withholding key information. and hackers believe to be supported by china's government have launched cyberattacks on ten global cell phone carrrsie what information did they get their hands on ahead on "the exchange." ens? we just move to the next town. just ok is not ok. especially when it comes to your network. at&t is america's best wireless network according to america's biggest test. plus buy one of our most popular smartphones and get one free. more for your thing. that's our thing.

welcome back to "the exchange." here are some of the movers. grub hub on an upgrade to buy. this in part due to part in its delivery services and even as "new york post" is reporting that grub hub has repaid a new york city restaurant more than $10,000 on allegedly invalid fees meanwhile, chipotle is higher. they are talking about strong momentum from digital and delivery initiatives and new menu innovations up about 1.5%. spotify is down more than 6% on a downgrade to neutral from outperform they're positive on network announcement and notice it is unlikery to generate profits until after 2023 that is a long ways off. now to courtney reagan for a

cnbc news update >> hi, kelly here is what is happening at this hour. speaker nancy pelosi predicting the house will pass a supplemental border funding bill this afternoon it will provide $4.5 billion in funding to help relieve the humanitarian crisis on the southern border >> this is a very strong first step for us. excuse me. a very strong first step for us for the children it's very exciting this is not immigration bill, it's an appropriations bill to meet the needs of our children >> hundreds of palestinian protesters continuing to rally against the economic conference in bahrain that will kick off the trump administration plans for middle east peace. it's the second straight day of protests in the west bank. federal investigators say the pilot killed when his helicopter hit the roof of new york city skyscraper in rain and fog decided to fly after radar showed a 20-minute window to make it out. tim mccormack flew for several

minutes before radioing that he was lost that is your cnbc news update at this hour. kelly, back over to you. >> thanks. 30 minutes to go until "power lunch." i'm joined by tyler mathisen >> a lot of assets moving up stocks one of the best june since 1938 and bonds moving up in value bitcoin has been moving way up in value but a lot of people have overlooked gold which is up 10 plus percent this year much of that return coming in the month of june. we'll spend some time on power lunch today looking at what is behind the rise in gold and whether it can continue throughout the rest of the year. that's on "power lunch" at 2:00. >> over 1,400 announced just in the last -- >> hasn't been that high since 2016 >> have to turn back the calendar here's what's coming up on "the exchange. coming up, is fedex suing the u.s. a play against our government or a play to win over

china's? you want an ad-free internet, it will cost you "th" oris coming to a high school auditorium near you that is ahead in rapid fire.ion. part of you... t your brain. with an ingredient originally discovered in jellyfish, prevagen has been shown in clinical trials to improve short-term memory. prevagen. healthier brain. better life.

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dow off those session lows and let's catch you up on a couple stories today rapid fire here with their takes bill griffeth and kate rogers welcome one and all. >> we have been sitting here waiting patiently for you to start. >> they barely made it on time >> better late than never. >> china will not take retail sales this year. they've changed course from their last report predicting china's dominance and they cited the trade war for the reason for the reversal china won't surpass the u.s. in total sales until 2021 i love this because one of the real world fallout stories from all these headlines the last few months >> it is really auto sales that are dragging down the overall retail sales account for 14% and that

includes auto parts. china exports auto parts to the united states and they have been hit by tariffs, that slowed that down the real question is, will this make the chinese economy feel the pain in a way that puts pressure on the nation's leaders to come to the table and do a deal >> maybe it does it in the short term because it is not the biggest deal in the world, but these headlines matter you think they didn't want to get that headline this year. they talk about ecommerce, too a smaller piece of it. and they're saying u.s. retail sales they still think growing 3% this year so, pretty robust. >> definitely. china will surpass us by 2021. i thought the size of the china e-commerce market. the u.s. is about 16% and nearly $2 trillion. i mean, even with this downgrade, that is still a massive, massive number. >> absolutely. >> i wonder how much of this slow down is cyclical anyway both countries are due for a

slow down to begin with. china was slowing down before the tariffs came in. hard to quantify how much the tariffs contributed. certainly doesn't help but i think things are slowing down at this point anyway. >> at the auto front the end to consumer tax breaks auto sales slowed down and not all tariff related >> still, they bumped it out quite a bit. keeping with china, fedex is suing our commerce department to stop them from forcing down on the crackdown of huawei products an impossible burden on the company to know the origin and technological makeup of its package. really trying to leave them out there swinging in the breeze but for fedex's sake, they're saying, look, we can't be asked to police these packages we're getting in trouble with china for doing so and suing the government for some relief >> the biggest quote, we're delivering

>> which prompted me to go to the post office website to see what is prohibited from being shipped overseas and there's a list of 28 items on here. and they are very specific that this pertains to not only the u.s. postal service, but also to fedex. and you go down the list here. ivory, bullion, alcoholic beverages, hazardous waste, drugs and narcotics. they already, to some degree, are a law enforcement agency by having to know what is in those packages and to know the restrictions that exist at that point. i'm not sure i understand. i mean, certainly, they're very upset about what happened at this point, but to police this whole thing, they already do that >> alcoholic, you know that when you open up the package. fedex argument is we're in no position to have the expertise

to identify whether this is one of the parts that can't be sent overseas >> u.p.s. saying they have no issue. that's a bigger problem for fedex. if one of your competitors is like, hey, nice lawsuit, we don't have the same problem. >> that is the place to watch to see if this escalates or not one more on china. hackers are believed to be tied to the chinese government who have reportedly infiltrated more than a dozen global telecom firms and stolen corporate and personal data. israeli cybersecurity firm said in more than 30 countries across asia, africa and the middle east, companies were compromised by what they are applying are chinese state actors >> what i thought was most interesting in reading this article so many concerns of 5g and these attacks happen on 4g networks that are already established and already up and already supposed to be secure. so, what does that mean for 5g and how much of a risk does this pose >> everyone needs to be aware. according to these statistics

three out of every ten global cellular providers have been hacked has had sensitive information at risk or taken. it's not safe when companies have to invest in protecting their customers. what is your alternative >> the internet will never be hack proof that will never happen number two, the cold war never ended and, so, they're going to take advantage, whoever it is. you know, even some of our allies spy on us and we spy on them so, it's a little disengingenuo to throw up our arms >> that angle is interesting to me they were going after dissidents the chinese were which makes this troubling at some point if they are acting in china, it's not a place that values human rights they're acting internationally shouldn't there be some more, you know, i don't know what the right term is, rule of law that would at least protect them if you find out this is happening

i mean, what are you supposed to do if you're on the run and no where to go and hide or get better protection, that is the thing that made me feel a little uncomfortable about this if you try to take it from the human rights point of view where are you supposed to get that protection. >> you can't hide. >> terrifying thought. >> they were looking at where you are going and who you're talking to they weren't listening into calls or getting your passwords or things like that, that is different kind of information. >> this was not financial espionage. >> but it's valuable to them because the whole currency is being able to target not only who this individual is, but who are the others they are talking to >> for the united states, for corporate america, one of the take away lessons is they got in through spear fishing and this is where you get the targeted e-mail that makes you think, oh, i need to click open this attachment >> campaign technique. >> whatever. it's one reason why companies have got to spend more time training their people what to

look for with attacks because that's how they're getting in. >> i wonder if they can get in on slack move them all over to messaging and you don't have to worry about attaching any more what would you pay for an ad-free internet i am starting to think i'd pay a pretty penny internet ad spending will reach $106 billion if you divide that by the number of adults in the u.s., 250 million people, $224 a year or $35 a month in ad revenue. that is if everybody pays up to the revenue stream that the like of facebook, google and others would miss out on. as we have the debate over the legislation that would require companies to say, here's how much our data is worth giving us all a better sense of what we're getting in return for these free services >> first of all, we just discovered what it would take to get kelly back on. $35 a month. >> i will say, if you try to open certain websites.

i love the content -- >> yes, try to read the content. >> you end up closing out. >> what i thought was interesting is that the internet would not work the same way if you didn't have these ads. google is tracking your location and suggesting better roots and you're getting targeted ads on amazon because you bought x, y, z in the past. i find some of it helpful and infuriating and i will not stay on a website if i can't get to the content. intr intreresting to think all the ways we hate it and how it helps. >> how will i know what the most comfortable flats are and what is the most innovative underwear or shapewear i find out all of that from internet advertising >> do you really >> i'm being serious you order some of it and your dog is like, no, thank you >> i did order a pair of flats once i saw them on pinterest and

they were terrible so i never ordered anything again >> i'm the ad. exactly. >> targeted advertizing. >> i get ads for cookware, why is that? >> please write a cookbook please we will feature it on rapid fire if you do. if that's not an enticement, i don't know what else is. >> i'll write a cookbook when you go back on social media. finally, from comic books to movies and tv shows to high school theater productions, marvel is making three plays available for performances and since they're official marvel properties, let's check out these licensing fees involved. $125 if you're doing more than one. if you want to use the logo, posters and programs this is such nickel and diming by one of the most successful companies in the world >> my first thought is, wow, you can go to a high school to see

spider-man or, you know, ironman or something it's squirrel girl goes to college. what the heck is that? >> there's a play called hammered it's the thor and loki story you'll give high school theater a bad name to put "hammered" up along the marquis lights >> now you have to pay for that privilege. >> not now >> we always had to pay licensing fees >> you had to play licensing fees if your drama teacher was breaking the rules, he would pay it for three scripts and then illegally copy it. who is going to do that in this day. >> it's not going to be a good look for them when they start going after high school theater. >> they lose control of their brand a varying levels of greatness. >> i mean, $75 really is not

that much, i don't think, to stage a single play. >> it depends on how much you're charging for the tickets. >> that. but i'm not sure i would pay 75 bucks for "squirrel girl goes to college. >> but squirrel girl is very popular. i googled it i learned it today >> this time contessa googled something. thank you, all >> are we done already >> we're done because we have some breaking news on trade. >> speaking to senior administration official and this reads to me, kelly, like administration officials are trying to set expectations for the g20. here's what reuters is reporting right now. the united states is not willing to come to the trump/xi meeting with concessions on trade, the official is saying no broad trade deal expected to be made at the g-20 trump/xi

meeting. the meeting will take place on saturday and that confirms what we thought is the most likely scenario they are saying, this official, there is a pretty good chance that the trade talks will restart after the trump/xi meeting and the united states would like china to return to where it was on trade before talks broke down in may. also, reuters reporting that trump believes the u.s. dollar is too strong and the euro is too weak that is according to a senior u.s. administration official clearly reuters is talking to some folks in the building who are setting the table for that g-20 saying the united states is not prepared to come in with new concessions but setting the expectation that this will be a success if it restarts those talks that have broken down. >> all right, eamon, thank you coming up, new home sales sinking in may as lower mortgage rates weren't enough to combat higher home prices according to a new harvard ud t housing market is

facing an even bigger problem. those details are next

welcome back harvard releasing its annual report on the state of u.s. housing today. highlights a looming crisis of not enough homes being built to meet demand. the combined vacancy rate was 4.4% last year the lowest in 25 years. for more, let me bring in zillow director skyler olsen and our own diana olick. we have some pretty disappointing housing numbers this morning >> we got some surprisingly low new home sales for the month of may. we were expecting tobounce up because of the drop in mortgage rates but we saw buyers pull back and likely due to the affordability crisis prices just too high, even with the lower mortgage rates and the problem is, as you said, the builders are not building enough and specifically not enough on the lower, cheaper end of the market >> skyler, harvard saying there is going to be a half a million

sho sho shortfall per year they say we need 1.5 million how is that playing out? >> yeah, i mean, over the long term what it means is that we'll continue on this steady progression towards housing taking up a larger and larger share of your income housing over the long term will probably continue to grow faster than income and that down payment will continue to be a greater and greater challenge because, again, you know, like these markets over the long term, it's about supply and demand and supply is not keeping up with the growing number of households >> diandiana, we also spoke abot another factor here which is there are still a lot of investor interest in homes and interest from all-cash buyers usapp to buy homes and squeezing out, you know, maybe that first-time home buyer so, either people find some way to foot the bill for higher prices or they come up with different solutions like renting, right

what are the alternatives? >> far be it for me to disagree with harvard, but they say we will see demand for home buying 10 million over the next ten years more home owners we're seeing a prominent shift to that single family market and that is people saying, i can't afford the high home prices and i don't want to have this less flexibility and move when i can, even if i'm staying in the house for four or five years they are shifting to the single family rental and that's why investors are so heavy into the, mat right now. we thought they would move out over the foreclosure but they're coming in heavier and heavier because they're seeing the returns. simple as that >> if i can weigh in on this one. i think the narrative in terms of the attractiveness of the rental market is certainly there but it has a lot to do with the barrier of getting into the market if i think about market pressures, it still matters that millennials are, you know, when they do reach those ages,

they're mid-30s now, coming at a later age than before. they're interested in buying that home and that will keep the pressure on. and to put in context where harvard is coming from if you think about the last ten years of first-time home buyers. that was the tail end of the gen-x generation it is smaller than the generation coming online over the next three years. 3.1 million people will pass that mid-30s threshold than the previous ten years >> what about the baby boomers what about them booer boomers, ? they're sick of owning after what they have been through over the last ten years >> that is one of the hopes, but they're downsizing than at previous genrapgzs that's one of the challenges that millennials were having why there is so much pressure because that downsizing dynamic is also delayed. >> finally, diana, i was going to say finally on this it is

ironic that lennar is down big on this caution. >> the t word, kelly you say tariffs and the market immediately reacts yes, they said it was going to be not just the tariffs and increased cost for land and, of course, for labor which is getting even tougher to find and more expensive they said it was going to be $500 more per home and they also mentioned they're trying to shift to the more affordable entry-level homes. what does that do, it squeezes the margin which means it is lower prices and they get less and have to spend more to build those homes. >> great discussion, thank you, both forget heading to a gas station to fill up any more. a silicone valley is in one of their fuel trucks. >> it is such an easier option this is one of the field tankers and they go out to companies and refill gas tanks one by one. we'll show you how it works and

how one rental car company has been an investor in booster. we'll have that story coming up next we're the slowskys.

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booster is doing that in san jose, and aditi roy is out there with the details >> hi there, kelly this is instager yard. you can see the purple refueling tanks like this one. they get deployed out to client companies to fill up the gas tanks one by one you can see a refueling here about to take place. the company was started by a former nasa rocket scientist who wanted to disrupt the retail gas industry demand for gas is at peak levels, reaching an all-time record this month. booster works with companies like facebook and pepsi co who offer the on demand fueling option as an employee perk it announced a new round of funding. $56 million, it also added enterprise rent-a-car which uses booster for its fleet. they're an investor now, and booster says its prices for the gas are typically a little cheaper than those you'll find at nearby gas stations but they do fluctuate with the market >> cheaper

aditi, not a single person on my team when we talked about this didn't want to sign up immediately. what i thought was this is brilliant. then i realized, wait a minute, here in new jersey where we still have someone pump your gas, are we putting those gas stations out of business watch the freak out begin if silicon valley disrupts the gasoline station industry. >> i know, it's pretty amazing when i heard about the idea, i thought, i wish i had thought of it myself. while it seems like such a simple concept, i hear that basically in practice, it's much harder to do logistically. they're focusing on company parking lots instead of going out one by one because it's so much easier that way they do sometimes go out to parking lots of gyms and shopping malls to do special events and they're hoping to scale up as well. right now, they're in 20 cities, mostly across california but they're planning on expanding to both coasts. i was talking to someone about that jersey pumping. i always used to stop in jersey

to get my gas pumped because it's such a perk getting someone to do it for you >> they better hire some good lobbyists if they want to get this across the state lines. thanks very much aditi roy in san jose for us >> an investigation has revealed courts have been keeping potentially lifesaving information about defective stthuct from the public for e pa 20 years. we're going to talk to one of the reporters behind the story right after this when it comes to feelings, it's more like five million. there's everything from happy to extremely happy. there's also angry. i'm really angry, clive! actually, really angry. thank you. and seat 36b angry. you're clive owen. and you're barefoot. yeah... there's also apprehension. ...regret... ...relief. oh and there's empathy... ah, i got this in zurich! actually, what's the opposite of empathy? but what if your business could understand what your customers are feeling... and then do something about it.

you can turn disappointment into gratitude. clive, you got to try this. i can't i'm working. turn problems into opportunities. thanks drone. change the future of your business change the whole experience. alright who wants to go again? i do! i do! i have a really good feeling about this.

welcome back a shocking new reuters investigation sheds light on the secrecy around product liability cases in the u.s. going back as far as 20 years. judges sealing evidence relevant to public health and it's playing out again in a courtroom in cleveland where a judge is not granted evidence in opioid cases. joining me is the co-author of this story dan, and why are opioids the most emblematic of this problem? >> well, it goes back many, many years to the early 2000s when litigation over opioids first began. we found records going back to the first state lawsuit against purdue pharma that were sealed in 2004 that had to do with how oxycontin worked for many

patients evidence that purdue knew that it didn't last for 12 hours fo many patients. and that could really heighten the risk of addiction. they were sealed then. they were sealed by judges in other courts in the years past that, until they became, some of them became public more recently and really sparked this wave of lawsuits and even now, in this court case in cleveland, the judge had been sealing a lot of records without deciding whether they deserved to be. >> why is that because you mention this isn't the opioid crisis. we're talking about the gm rollover accidents, the remington hunting rifle issues in the 1980s goodyear tires and mobile homes. why don't the judges make this information all public >> well, the biggest reason we found, the biggest explanation in our reporting is it's just convenient oftentimes neither side in a case asks for it to be public. the companies, of course, want

to protect their files the plaintiffs just want to get a judgment and a recovery. and so no one is asking the judge to do this the law says that the judges are supposed to do it on their own, but they need to move cases too. they're pretty overworked, so they ovjust don't look at this stuff, and as a result, a lot of information doesn't become public that could really help people >> what does it take to change that, just the precedent of judges doing it differently, more pressure from the media or from the public watching high-profile cases does the law needs to be chan d changed? i'm sure some companies are saying there's a risk that information will get out there that doesn't tell the whole story. >> sure. well, i think that in terms of what could be done, judges can use some of the tools they have now to actually do the analysis and make sure that the information they're seeing actually deserves to be secret, if someone asks for it the courts could change their rules and congress could pass

laws that make some of these analyses more permanent and widespread companies, if they want to keep something secret or think something unfairly could tarnish the reputation or it's a trade secret, actually, reputation shouldn't matter if it's a trade secret, companies could ask the judge, look, this is a trade secret this is going to hurt us competitively, you should keep this under wraps, and judges are allowed to do that i think the thing is that judges aren't even looking at this stuff to decide whether that's appropriate or not >> yeah. and what do you think, would it have helped the opioid crisis if we had more information sooner >> yeah, we quote one congresswoman from massachusetts who has been studying the roots of the opioid crisis for a long time she says that it's heartbreaking and sickening, and that there's no telling how many lives could have been saved if this information about the drug had been out sooner. >> dan, thanks a great piece.

appreciate you joining me. >> thanks so much for having me. >> dan levine is reuters correspondent. i'll join tyler for "power lunch," which begins right now kelly, thank you so much we'll see you in just a moment i'm tyler mathisen welcome. new at 2:00, fed chair powell speaking about uncertainties in the economy. it comes amid a number of warning signs. we'll break those numbers down for you. despite concerns, it's becoming a rally to remember. the major averages up 15% to 20% and the year is just about half done are the gains all done or is there more room to run and a $60 billion mega merger in health care. we'll look at the next takeover. "power lunch" starts right now >> stocks are under pressure modest pressure, but off session lows the dow and s&p having their biggest one-day decline since the end of