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 may if that's the biggest you're going to get, hey, we'll take it big moves in bunds yields on the ten-year note falling below 10%. there you see it at 1.99, if my eyes serve me. and gold marching higher prices up 10% so far this month. six-year highs on gold more on the gold trade ahead kelly. >> tyler, thanks let's get to the comments from fed chair powell he was speaking in the past hour about the economy and fed policy >> he's still speaking right now because it's still the council of foreign relations part of the q&a. this is, again, federal reserve chair jay powell saying the federal reserve will act as necessary, as needed to sustain the economic expansion he says that uncertainty over trade and global growth have increased. but he's grappling over whether these uncertainties will actually continue. still, though, jay powell, the fed chair, saying the economy has performed reasonably well this year, and that the baseline outlook for the fed remains

favorable, and that policy should not necessarily overreact to any one specific data point powell also hinting at potential insurance cuts, pointing to research that shows it's best to act sooner and more forcefully, an ounce of prevention worth more than a pound of actual action now, this comes after st. louis fed president james bowlered spoke on bloomboard earlier, regarding his dissent vote in last week's big federal interest rate policy meeting. he said it now seems like a good time for an insurance rate cut but that a 50 basis point cut may be overdone. he does see, though, 50 basis points worth of total cuts by the end of the year. bullard said he hopes fed action will straighten out the yield conser curve as well. interesting because it seems that bullard, one of the bigger perceived doves on wall street

is now slightly more hawkish jay powell considered one of the more hawkish folks out there, saying maybe more accomodation is needed and pre-emptively. a muddling by two sitting and voting fed members >> you can see the market reaction there dow is down about 150 at the session lows down 118 dom, thanks. >> thank you very much powell saying trade and global growth are among the uncertainties. we have fresh data showing consumer confidence in the u.s. has fallen to near two-year lows home sales also down gold prices, six-year highs, and the ten-year treasury falling below 2% once again. what's the signal and is it time to get cautious. evan brown is at ubs asset management, and gabriella is global strategist with market funds. gabriella, do you agrew with mr. bullard that probably in total a half point cut by the end of the year is likely in order, called for? >> we do

we think one or two rate cuts by the end of the year, probably one in july and then september or december is up for grabs. and that's really because we agree with their characterization of the economy. the consumer is the life fest, so things are still okay, but it's clear that the uncertainty is weighing on business confidence and business investment >> would a rate help cut the u.s. economy would it help the global economy? >> i think that's such an important point because we are fixated on what the fed will do. but really what we should be asking ourselves is will it matter will it actually help this characterization of a downshift in u.s. and global growth? and we really don't think so because it's happening because of economic policy uncertainty, not because of tight monetary policy so we really don't think it changes the picture. >> then why do it? >> i think as draghi has said as well, we have to do something. we have to try to help we can't just throw our hands up in the air and give up but is it really going to help not so much.

maybe it puts a floor on growth. it puts a floor on the market, but there is no big acceleration coming >> evan, what do you think >> i think we have seen a full shift from the fed to risk management mode, where in the average ahead of every recession, the fed cut has been about 5% they have 2.5% of ammo and the argument is, let's act really early to make sure that we're ahead of this. because the worse thing that happens is you cut 250 basis points, you're back to zero, and everyone thinks you're behind the curve. so insurance, it does make some sense, and it makes some sense in light of the data we're seeing today the software consumer confidence and home sales >> how much of a downturn are you predicting >> our view on the economy is bend don't break we're undergoing a mid-cycle slowdown, same as we did in 2011, 2012, 2013, 2014 ultimately, it's the consumer, the labor market, that is what will make us hang tight.

we have to watch that data really closely >> in those cases, there was never a fed cut outright they might have paused for a little while, gone slowly here and there. what makes this episode worthy of a bigger response >> so i think it's, what they're saying to us is that that risk management point it's that they are -- they really want to act fast and aggressively to kind of get the economy making sure that it's stabilized and support the market so we don't think that they are restrictive right now. but providing a little bit more accommodation is not necessarily a bad thing with inflation levels >> do either of you expect a recession in the u.s. between now and the end of next year not this year. >> we usually say there has to be a reason for that usually it's monetary policy that's too tight that seems to be off the table otherwise, it's some sort of shock that occurs. now, of course, it's by definition hard to see that shock on the horizon

we do think this trade issue could potentially become a shock if we see further escalation in tariffs. >> you don't expect there to be a breakthrough this week at the g-20 >> no, and i think the best we can expect and what the market is expecting is just a truce let's just keep talking and postpone further tariffs, and then that cloud of uncertainty hangs over it, but there's no downpour that drives us lower. >> the same question to you, recession by the end of next year trade solution coming? or postponement more likely? >> immediately, no trade resolution coming. we hear the white house already out today lowering expectations. the best we can really hope for is talks continuing. and that uncertainty will be with us. the key is we don't get escalation if we get escalation, the risk of recession spikes dramatically without escalation from here, we think about a 1 in 4 chance over the next 12 months or so if the fed is acting the way it is, then that lowers that probability of recession

>> thank you very much >> nice to have you. great to see you >> to the blockbuster deal today in health care buying botox allergan. and check out abbvie shares down 16% on the news. allergan soaring they're up 26% let's take a closer look at what's driving this deal and who might be the next takeover targets. joining us is david maris, securities analyst at wells fargo. what was your first reaction to the news this morning? >> why abbvie? >> interesting you're looking at it from the allergan point of view >> i covered allergan longer than anyone who covers allergan, back about 20 years ago, sat in an office when david piet first joined the company so to see it go out here to the company that makes humira and raises price a lot is a little disappointing. >> why disappointing >> well, first, the stock -- the premium was a lot to where the stock had been trading

but the stock's underperformed a lot. so it's really off a low base. the other is that i can see why abbvie wants to diversify away from humira. i don't know why an allergan shareholder would want to diversify into humira. >> do you think there's a risk the deal doesn't get done because of all that? >> from what i can tell, there's no vote so it's nothing that could be broken up easily. if abbvie share goes down enough that the premium doesn't look like enough, allergan could step away and say this isn't a big enough premium but i don't think someone is going to step in to bid above just because this has been a process, allergan has been looking at strategic alternatives for a little while. don't think someone bids more and i don't think an activist gets involved. >> what do you think this augers for the whole area are there other -- is it a target rich area that this deal could spur >> so there are really two types

of pharma deals, i think if i had to classify them. one is we're behind in science, and we need to buy the newest science that's coming on to the market those are a lot of biotech type deals. then there's i have something going wrong in a few years and i should fill in this hole or try to augment or diversify away from this problem. this kind of falls into that this fall into the pfizer warner lambert deal from years and years ago. this is a consolidating industry as pricing becomes tougher as the administration continues to put pressure on things, you'll see more consolidation. does this deal do that in and of itself i don't think so, but again, this is a sign of the times. >> what you're describing in the business broadly >> absolutely. >> you mentioned the price hikes. why is that significant here in particular do you think? >> i think there's a bit of a culture clash. putting two companies together on paper is easy actually integrating them and making sure they get along, so you have a company that has its roots in irvine, california, and new jersey, allergan, and then a

chicago-based company. finding the synergys and getting them to work could be difficult. there's not a lot of overlap, either they're going to have to come from somewhere they say 50% are coming from rnd. now, all of that said, you have, if humira, abbvie's ceo was testifying recently before congress on price hikes to humira allergan's ceo had come out a couple years earlier about a social contract of limiting price increases for drugs. so is there a culture clash? maybe there will be. >> are these two companies too closely associated with single products for their own good? >> i think allergan is a little more diversified and again, i don't cover abbvie so i'm taking it from an outsider's view. they have a very big pipeline on products coming onboard, but allergan is pretty diversified >> but you think of them as the botox company. >> you do. >> yeah, the botox company

>> they have a few billion dollar products. they are botox, they have fillers, and they also have restasis >> who else does this put in play then? because it's such a unique deal, i don't know if it has broader implications >> i think there will be more consolidation. i don't think this will pull other people in, but do i think over the long term, if you look at the major pharmaceutical companies as channels, then you have to ask yourself, does it make sense for there to be two swiss companies. does it make sense for a company who is very focused on diabetes to only be focused there i think there will be more consolidation, but this in and of itself doesn't drive that >> david, thank you. coming up, the fallout from the trade war with china we'll speak with a republican governor who opposes the tariffs, and we're watching shares of lunauennar. >> and we'll take you to vietnam

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chinese president xi jinping at the g-20 summit. let's get to eamon javers. >> that's right. here's what's going on a senior administration official just had lunch at the hey adams hotel across the street from the white house with a number of reporters. and in that lunch, the official sort of laid out some of the expectations forthe g-20 you can read this as expectation setting for the g-20 to make sure that the global financial community understands what might happen, what might not happen at the g-20 this official telling reporters just within the past hour or so, ultimately, that the united states is not willing to come to the g-20 with a list of concessions on trade and also that no broad trade deal is expected here at the g-20. the official also saying ultimately that there's a possibility that the u.s./china trade talks could go on for months or years. so that is the downside of sort of what the official said. the official also suggesting, though, that this g-20 summit

could represent the rekindling of talks between the united states and china remember, those talks broke down later in the spring. now, this administration official saying that the white house simply wants to restart talks. and seemingly setting that as a barrier for success here for this g-20. no final deal expected this week, but ultimately, if they can restart talks, that would do a good one other thing this other said that you don't hear officials saying, that the president believes the u.s. dollar is too strong and that the euro is too weak. you often don't hear the president saying anything other than they have a strong dollar policy and suggesting the president is going to begin interviewing candidates for the fed before too long. >> for the openings, not for the chair? >> for the openings, but this official also telling reporters that there are a variety of opinions inside the white house counsel's office about whether the president has the authority to demote the fed chair. they're still keeping that as a live possibility, that the president could demote the fed

chair if he so chooses and in the same breath, saying he doesn't so choose right now. >> thank you very much >> backlash over the trade war with china has been intensifyi g intensifying fedex suing the u.s. government, saying it shouldn't be held liable for transporting products that violate the trump administration's ban on some chinese companies. all this ahead of that big meeting between the president and president xi on saturday at g-20 with us now to discuss trade and the economy and more is iowa governor kim reynolds. governor, welcome. you're a gop governor, we should point out just for the record. >> i am. >> but you don't love these tariffs. tell us why. >> well, no, i don't i'm a free market gal and i want to do what we can to continue to grow our economy 1 in 5 jobs in iowa is attributed to our ability to export our goods and commodities across the world we want to make sure, first of all, what i would love to see done is congress ratify the usmca. that would bring a great deal of

predictability and stability to the market, and if we can get that done, we can join hands with our allies and really focus on china and see if we can't move the needle there. >> i assume you were very relieved when there was sort of a stay of those tariffs on mexico, because as i understand it, mexico is iowa's largest export market. >> it is that was my message to the president. >> what do you send there, beans, poultry >> corn, pork, soy you name it. so a big market for us so is canada so anyway, my message was let's really focus, i was afraid it would impact usmca, and it's time sensitive we need to get it done before summer break >> that's the big priority what about china how much business do you do with china? >> it's a big trading partner with us, but iowans are in it for the long haul. we can't continue to let them be a bad actor. they can't continue to steal intellectual property and technology transfer. we had seed stolen right out of the ground in iowa

they reverse engineered it to get the technology we can't continue to let them get by with that or manipulating the currency we need to get it done we're all hoping we can get it done sooner rather than later, but right now, especially if we can get usmca ratified and start to provide predictability there, our farmers are in it for the long game. >> the president did very well in 2016 with farmers are they hanging with him? >> they are. especially, he was just in the state last week and was able to get done in two years what the previous administration couldn't get done in eight, which was to help us get e-15 year round. >> ethanol >> we're the number one producer of ethanol it adds value to what we grow and produce and helps our economy in rural iowa, and there's tremendous opportunity around the globe to export ethanol and biodiesel, especially as more countries try to bring renewables into their portfolio. >> you're also on a campaign to get jobs to iowa >> get people. >> get people to iowa. why does that take this kind of effort >> well, i think sometimes

there's a misperception about what iowa is this is a great place to live, work, and raise a family we have not only great opportunities there, but we have a great quality of life. i think they forget about the amenities we have like great restaurants. >> oh, sure, but tell me what your typical home price is, four-bed, two-bath, three-bath >> $200,000, $150,000. >> i'll begin to cry now >> there's your message. >> please go check out thisis iowa, our new campaign to highlight the wonderful opportunities in iowa. we set up a real estate shop here in manhattan, and new yorkers came in off the streets and were just blown away with the amenities and the opportunities that are in iowa >> you know the democratic debates start this week. what's it like to have all these democrats in the state of iowa >> last week, we had 19 out of 23 in cedar rapids truly, as the first in the nation caucus, you know, we went through this the last election what we say is come here and

come often spend your money in iowa help grow our economy. >> just fine you don't care which party they're from >> because it brings people to our state. and they get to see the great things we have going on. >> how do you make sure you stay first? >> we fight all the time new hampshire is the first primary. we're the first caucus state we do it well. iowans are very engaged in the political process. they know the issues they ask the questions you can campaign relatively cheap. you can have no money and still have an opportunity. >> we have one of our correspondents for many years has done a survey called best states for business in america don't know where iowa ranks. i imagine it's well up there in the top quarter or there abouts. what makes a state good for business, business friendly? what are the three things? >> i think regulatory reform >> low regulatory reform >> taxes, and access to talent pipeline right now, every business that i talk to almost without fail,

they're very optimistic about the future and projecting significant growth in just our labor shortage right now is the biggest impact we have we're looking at it from a holistic approach, but that's one of the reasons we're highlighting this is iowa to not only new york but denver and dallas and san francisco and just anyplace we can reach out and say hey, come check us out this is a great place to do business >> like a college coach recruiting >> i'm doing my best every day i have a phenomenal team check out the video, this is iowa go to the website. >> thank you goldman stocks don't normally move higher together, but lately, they have been we'll talk about the correlation, why it's happening. plus, our interview with andre iguodala got a lot of buzz what he said that had the basketball world atwitter. we'll have that, stay with us. -driverless cars... -all ground personnel...

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trading nation team today. mark, obviously, gold manages to crack through the upside of this trading range it had been in for years now. what does it say to you at the moment it's maybe running a little hot, but others are looking for momentum to continue >> yeah, a couple things, mike this is a very constructive move in gold. the bulls have been watching for this move for over five years. it's finally happened. for the gld, getting up above 130 is very constructive in the intermediate term. the real issue, though, is momentum has gotten very overbought in a short period of time gld is up since may. up at 134. overall, a very good move. in the short term, though, i think it's right to look the other way for a few different reasons. one is that rsi and daily charts is up to near an 87, and on a weekly basis, at 78. the highest since 2011 the second is that you have at least near term signs technically that interest rates

and the dollar may be near short term support if those tend to stabilize in july, that could put pressure on pressur precious metals. i have been seeing marks, the three of those suggest that gold near term is not the best level to initiate new buys but on an intermediate term basis, any pullback would be a chance to get involved in the next one or two months coming into a seasonably bullish time, into the fall. >> all right, michael. i mean, how would you view it here, either tactically or as something to just put in your portfolio for whatever reason? of course, we know there are many rationales for why gold may or may not work in a given cycle. >> yeah, i mean, it's really odd. you wouldn't really associate higher gold prices with high stock prices and lower interest rates. but because stocks are high, i think a lot of investors, i think they're very fearful of a trade induced recession. not only in the u.s. but around the globe. trade tariff induced recession so i think they're hedging their

bets with gold i think this breakout, it's been such a dead asset class for a long time, that this breakout is exciting people who are looking for some kind of opportunity around the world i don't think the g-20 is going to do much to alleviate trade induced recession fears. the president wants to seem to walk down the u.s. dollar, which should help gold so in our opinion, we think this momentum can continue into the intermediate term future >> and digital gold, bitcoin, also working lately. so maybe it all fits together on some level mark and michael, thank you very much for more trading nation, head to our website or follow us on twitter. tyler, back over to you. >> thank you very much ahead on "power lunch," shares of the home builder lennar plummeting after concerning comments about tariffs and how they're affecting the business there. we'll speak to an analyst who downgraded that stock. plus, a house hearing on taxes. the impact that eliminating state and local tax deduction has had on communities

and made in vietnam. cnbc's new special report on the country's manufacturing boom all this when "power lunch" returns after this >> and now the latest from tradingnation dauts cnbc.com >> during bull markets, many traders find themselves attracted to small market stocks because they have a higher beta, meaning they generally move up faster than the broader market, but don't overdo it because they're also more vulnerab tleo pu pullbacks. schwab is the better place for traders.

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i'm courtney reagan and here's your news update at this hour melania trump announcing her spokeswoman will be the new white house press secretary. she'll also take on the role of white house communications director she succeeds sarah sanders who announced her resignation earlier this month >> vice president mike pence launching a latinos for trump coalition in miami an effort to engage latino voters ahead of the 2020 election >> to everyone across the latino and hispanic community, that with your continued support and

energy and enthusiasm, and with god's help, we will make america safer than ever before >> john sanders says he's stepping down amid outrage over his agency's treatment of detained migrant children. he would resign on july 5th. that's the cnbc news update at this hour. kelly, back over to you. >> thanks very much. we're 90 minutes until the closing bell take a look at the stock market. dow at session lows. a drop of about 158 points right there. we're briefly down 150 after remarks crossed the wires at 1:00 p.m. from fed chair jay powell he was speaking at a cfr event he made commentary about whether further accommodation would be needed you can see the reaction in the s&p, down 23 points. the nasdaq down 106 as well this hour nasdaq the biggest decliner by far. down 1.3%. dow down only about 0.6%

now over to dom chu. >> we're watching what's happening with shares of a couple large meat processors tyson foods and pilgrims pride, taking a leg lower after some bloomberg headlines say the united states government is probing claims of possible poultry price fixing at tyson and pilgrim's pride and possibly others that's not the first time many of these meat processors, especially chicken processors, have been the target of scrutiny, not just from people claiming they may have allegedly fixed prices on chickens but also there could be some anti-trust scrutiny. still, those headlines moving the stocks lower we should point out that those two companies and others are still embroiled in a lawsuit alleging they did price fix chicken, so tyler, we'll keep an eye on those we reached out to both companies for comet. we have yet to hear back >> thank you very much >> the yield on the ten-year note below 2% today. mortgage rates down as well. but is that translating into an

increase in home prices. diana olick has the latest numbers. >> it's simple if rates fall, buyers can afford more that means they can also bid higher this morning, we got the latest read from s&p schiller, which is the most watched home price report it till showed the home price gains are shrinking annually prices up 3.5% annually in april versus 3.7% in march, but this report is pretty backward looking. we have newer reports from zillow, the realtors, and core logic showing home price gains getting bigger again for the first time in about two years. even the case schiller report, when you break down the gains by large cities, a growing number of cities are seeing the price gains increase now as for the builders, we saw the median price of a new home sold in may drop almost 3%. a lot is the mixed shift, meaning more lower priced homes are selling than the luxury homes. builders are pivoting to the lower end now, but that hits their margins, given higher cost

for labor. >> all right, thank you. the nation's second largest home builder is meanwhile on track for its worst day since 2018 lennar tumbling after starting the session in the green after its earnings beat. but shares took a sharp turn lower during the conference call they said chinese tariffs and material costs as headwinds, saying the impact has been about $500 a home. our last guess downgraded it last week. do you have any special insight on that, buck, or what told you that things didn't look so good. the report itself did originally look fine. >> well, that's true and like diana mentioned, falling mortgage rates has provided a tailwind, and we did see buyer activity was improving in april and may and i think that's what drew some buyers into the stock, which led to evaluations of not just lennar but across the

group. we saw elevated evaluations going into the end of may and early june and got to a point where we started to realize, you know, look at these gross margin expectations, and we started to realize a consensus earnings expectations weren't factoring in that the level of incentives and promotional activity that was needed to boost that demand was much more elevated and extended much longer into the springtime than this time last year now, that's a function not only obviously, tariffs are a cost input, but those incentives are a function of higher competitive resale inventory the core home building markets where we were tracking the data and monitoring this activity, we're just wrestling with a lot more resale inventory on the ground for the builders to compete with >> right, so to be clear, what you're saying is in markets like las vegas, this supply of existing homes is up 85% it's up 50% in seattle, 21% in dallas and these are typically lower priced so the new homes can't compete.

why is the inventory up so much in these markets >> that's a great question you know, starting to see a little bit of mobility coming back, and you know, maybe just an elevated level of demographic shifting going on right now. a lot of inputs into that. not necessarily an easy one to precisely pinpoint, but you can see when it's happening. that's what we were trying to identify, on a year over year basis, the builders did not have the same level of pricing power. we got some tailwind from the mortgage rate decline, but it was an awfully sluggish start to this year's spring selling season we were clawing back to break even, which is effectively what lennar reported with 1% order growth on a year over year basis. >> you also see declines in consumer confidence. i wonder if that is manifesting itself both in home purchase intentions and actions and also in auto sales among other places we have been zeroing in here on the fact that tariffs, says the company, are impacting them to

the tune of about $500 per home. is that material or not? >> well, it's a factor it's one of several. i think land costs are another factor land costs being prohibitive because the cost of entitlement continues to extend. that's largely a function of local regulations and government taxation measures. couple that with just the promotion. the promotions for lennar, for example, were up $2300 per house, whereas the identified tariff impact was $500 per house. so it's all adding up, and it's all leading to cost pressures, and as diana mentioned earlier, the level of pricing power in the market this year just isn't what it once was >> all right buck, thanks very much appreciate you joining us today. >> thank you >> stocks are at session lows right now. bob pisani at the new york stock exchange tracking all the action is this powell or what >> it's powell and bullard so here's the story. the market has come to expect

that there's going to be aggressive rate cuts, which might even be 50 basis points next month when they don't get that, they throw a hissy fit. and those expectations were tempered today so bullard comes out and says, it's a good time for insurance rate cut then he says, the situation doesn't call for a 50 basis point rate cut yet that's a disappointment. then mr. powell says, monetary policy should not overreact to any individual data point or short-term swing in sentiment. another temprerance to the whol we're going to do 50 basis points remember, we're getting near the end of the quarter we had tremendous outperformance in several sectors technology stocks and communication services have done well they're weaker there's a little profit taking going on here. finally, if that doesn't impress you, the three -- there are three stocks that have contributed to the majority of the gains in the s&p 500 microsoft, amazon, and apple are the majority of the gains in the s&p 500. how can that happen with 500

stocks you have three dozen super cap stocks if they move, the whole market moves and the other 490 can do nothing, and these stocks have had tremendous gains, particularly microsoft this quarter. disney also had a big gain that's a big influencer. call it the triumph of indexing, tyler, when these super caps move up, the whole market moves. >> a reallocating going on, i assume, as well, as we come to the half time of the year. bob, thanks. >> meanwhile, yields on the ten-year falling below 2%. guess who's tracking the action at the cme rick >> absolutely. and even before we get to ten-year, we had a two-year note auction. $40 billion. one would think with all these questions about monetary policy, it wouldn't go well, but it went quite well can gave the auction a b $40 billion two-year notes at 1.659% priced right the metrics there, they were all above average. directs were actually quite a bit above average. dealers only take 27.3%.

as for the intra day chart of two year, look at that volatility, whether it was bullard or jay powell, having a 50 in one chunk, maybe the market wanted it, most traders were suspect even before the conversations out of the fed and finally, don't count out the dollar index what goes on with rates is paying a big deal for the dollar and dollar investors, you can see the dollar index had a lot of volatility, and it's still in positive territory, although yesterday's close was the lowest since march 20th of this year. back to you. >> rick, thanks. >> vietnam is experiencing a manufacturing boom, and it could get bigger as the u.s./china trade war drags on a look at how the country is trying to get its workforce ready. stay with us thank you so much for coming in. is something going around? yeah, uh, welcome to cold season. [ sneeze ] you know at cdw we get that sometimes

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welcome back as the u.s./china trade dispute

drags on, many companies are considering moving some or all of their production out of china, and vietnam could become a popular destination if they have enough workers with the right skills carl is live in hanoi with that story. >> we have been here in hanoi all day talking about vietnam's emergence as an alternative to chinese manufacturing going into the g-20, obviously, in the face of a trade war last hour, we introduced you to a textile maker here with facilities a couple hours north of hanoi been around since the '70s hiring like bad. we talked to one of the managers there who said the demand for workers is so intense that even though they're in the apparel business, they have to get into the housing business >> one of the sustainable business challenges is to build the people and build our business so in order to grow the business, it's more important for us to build the home for the people than actually building a factory. it's part of the development and part of the long-term plan

strategy >> average worker there makes about $280 a month believe it or not, that's above the minimum wage in vietnam. those wages crept up as companies like samsung moved in down the road a couple years earlier and lifted the entire labor pool expectation for what a living wage is here. you're beginning to see a lot of economic effects come in, even as business interests also comes in kelly, tyler, back to you. >> carl there. >> our tasting menu is up next today's special, practicing proper etiquette when it comes to paying using venmo and others recapping our power player, and prime days "power lunch" back in two. woman: my reputation was trashed online. i felt completely helpless. my entire career and business were in jeopardy. i called reputation defender. they were able to restore my good name.

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. on our tasting menu, here is a taste of some of the other stories. amazon is doubling down on its biggest e-commerce event prime day will run for 48 hours, it starts july 15th. and amazon prime members will be offered more than 1 million deals including the new featured lighting deal.

this annual event, i don't know what that is, but it has become so popular that amazon has extended prime day by a full day. i saw ads for it on amazon last night. >> already wow. it will be a week i'm sure in a couple years there is no limit. mobile money, more problems. the peer to peer app venmo has commissioned a survey of users you have 24 hours to pay up. 72% of users say that this is the best response time after receiving a request. in other words, pay right away as much as you can about two-thirds of users also think that it is inappropriate to ask someone on a date and then venmo request them for half of the bill. >> that does seem like a little bit -- >> yeah, come on that is never appropriate. i don't know if i abide by that 24 hours i have been a little delayed i have to tighten up on that

and iguodala omaking big news here what is he said when i asked him about klay thompson. >> i think that they will be back with the warriors we keep in contact but regardless, if both did decide to leave, they are both still my brothers. just wish the best for both those guys >> you are crushing the knicks fans >> nobody is going kelly said nobody is going to the knicks >> he barely needed any prompting. >> it was quick. >> like are you serious? why would you even ask >> i've done a lot of interviews as we all do and none has impressed my son more than yesterday's with andre iguodala it lit up his phone. so big stuff >> yeah, got picked up

everywhere and there were so many little interesting nuggets. i was almost wondering if msg shares were going to move on that that is not a good sign the way he is talking about the reputation for the knicks now across the league. >> yeah. he was a very thoughtful fellow. >> very. >> very. he thought through a lot of things the book is really terrific. unintendsbend intend conseqe tax law changes taking stage washington it impacted me >> you and 11 million others we had some testifying in congress about the pain that is being caused by the catch on state and local tax deductions the so-called salt cap effectively raised taxes on many americans, many high earners in mostly democratic states democrats held the hearing as part of an effort to get the caps repealed saying they are hurting governments and real

estate republicans saying repeal would only help the rich and tom rice had this exchange with a wisconsin fire chief. >> what is your average firefighter make, how much money? >> about $45,000, $50,000. >> he ain't going to get one dime of benefit. does he understand that he is going to have to pay more taxes to give this tax break back to rich people? >> 3450e7b whimeanwhile other dn the capitol were calling for higher taxes on the wealthy. senator chris van hollen speaking at a taxing the very rich conference announced a plan for a 10% surtax on income over $2 million and provision to end the step up part of the tax code which benefits wealthy heirs the democrats were supporting a plan that only helps the wealthy. 96% of the benefits go to the

top. whereas the republicans were saying this is a disguise in the guise of helping the middle class, really a break to the rich and sthoont happhouldn't happen. so turned the world upside down. >> robert, thanks very much. le> san francisco could ban the sa of ecigarettes, that is ne next onn "power lunch. -driverless cars... -all ground personnel... ...or trips to mars. $4.95. delivery drones or the latest phones. $4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade. no matter what you trade, at fidelity at cdw, we get that trying to simplify data storage can get very complicated. but cdw will assist your needs and implement a dell emc unity xt all-flash unified storage platform.

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? a few showers san francisco could be the first city to ban the sale of e cigarettes

aditi roy has the latest >> reporter: the city is slated for a final vote on the issue in just a few hours and if passed, mayor breed has ten days to sign the bill into law. there are a couple of measures that the board is considering. one would ban the sale of ecigarettes in the city, the other would ban the sale, manufacture and distribution of products on city property. juul is based in san francisco and its headquarters are on city property and in today's "wall street journal," dr. gottlieb offered his thoughts on how to curb the teen vaping epidemic he suggests if the makers want to keep them on the market, the fda could carve out a path for approving them as over the counter drugs. to that juul responded taken together with our industry leading action on youth prevention and hopefully category wide actions from the fda in the near future, we are

confident that adult smokers will not be left without a viabled a ter in viabled a alternative. and juul is working on an alternate plan >> all right thanks >> can't sell them in the city wonder if you can use them in the city >> i don't think so, but they sell cigarettes. thanks for watching. "closing bell" starts right now. good afternoon allergan is up 26% broader markets near session lows some down 0.7% 59 minutes left to trade everything you need to know coming up. >> and let's get straight to what is driving the action dow down 143 just off session lows. st. louis president says no need for half a point rate cut. disappointing to hear. and technology i