call a dilly dog [ laughter ] >> and on that note, have a great labor day weekend, everybody. that does if for us on the "halftime report." don't go anywhere. "the exchange" begins right now. >> thanks, melissa hi, everybody. here is what's ahead despite the tweets, the tariffs and the recession worries, the dow and s&p are actually on space for their best weekly gains right now since june we will help you get your portfolio set up for september as august draws to a close plus, the president taking aim again at general motors today tweeting about their made in chin kra strategy we will do a fact check and see why autos are being targeted yet again. we will look at one area of the market that is so popular right now that the pace of demand is break records. what it is and how you can play it if you should but we begin with today's markets and seema mody is here with those numbers >> the last trading day of the month and here's where we stand at 1:00 p.m. eastern

negative averages dipped but the dow and s&p climbed back into positive territory. the nasdaq still down about # 2 points being led lower by cisco. but it is the last day of the month. so let's show you how these major averages stand for the month of august. you will see that it was on the 4th of august when china let its currentliy fall below 7. but we did come off the lows from early august. we are off the lows but still down about 1.7 to 2% for the major averages in terms of sectors that have led us lower, it's really energy which was, by the way the worst performing sector in july as well down 8% we've seen in oil prices so far this month on the other side, outperforming once again is real estate as there is that hunt for yield in this lower rate environment. kelly, back to you >> all right, seema, thanks very much and welcome to "the exchange," everyone i'm kelly evans. some mixed economic data today with consumer spending rising more than expected in july

but august university of michigan consumer sentiment survey posted the largest drop since december of 2012 speaking of drops, a big one for the euro today which dropped below $1.10 for the first time since may of 2017. let's drill down on these markets more bob pisani watching the action at the new york stock exchange bob? >> stocks faded in the middle of the morning after a strong week. the rallies this month, have you noticed, they've been on very light volume because it's very tough to figure out how the global story is going to affect earnings in the next six months, and i'm talking about the global slowdown where are you on that spectrum everyone believes global growth is slowing but they're not sure by how much. the bears see a strong possibility of a recession in 2020 if that happens earnings could drop 10 to 20% over 2019 that's typical in a recession. bulls though see geopolitical risk subsiding and at least a long-term truce very likely. if that's going to happen, earnings could be up 5 to 10% in

2020 this is a huge difference of opinion even between the bulls and the bears. we are only 3% from historic highs, folks so it's hard to push for aggressively buying stocks at level. on the plus side, though, investor sentiment, oh, boy, is it bearish this is a weekly aaii survey it has the percentage of bullish 26%. that's awful this is the weakest it's been in years. the average is close to 40 by the way. the bears are at 42% that's way above normal. so extremes in bearish sentiment are often tied to at least short-term market bottoms. but again, kelly, tell me where growth is going to be in the next six months and i can tell you where stocks should be but nobody knows the answer. >> we'd all be in great shape if we knew that now we know that august took investors for a wild ride and it wasn't just in the stock market, it was in the bond market too. stocks sold off and global yields pluchled to new lows.

there is now more than $17 trillion of negative yielding debt worldwide. that's up by $3 trillion this month alone. will september bring a return to normal and if so, how should you be positioned here to discuss that are barry james and as chief investment officer at greenwich wealth management what i like about both of you is you have picks that are pretty contrairan in this market. so barry, you like chevron apple is a little bit more consumer friendly. but what do you think the landscape is going to be as we head into the rest of the year do you see a normalization for these markets? >> i think we do we're kind of in this never, neverland, if you will, of, you know, up and down markets. we've been in a trading range basically in august. so i think that may continue, but i think there's a shift taking place finally, i've been the maytag

repairman, i'm a value-oriented guy. it has been lonely, lonely, lonely [ laughter ] so i really see that that is just beginning to make a little bit of sense the rest of this year, the companies with no earnings have doubled the returns of those with earnings, and growth companies have just about doubled the value. so i think we're in a transition that's what this up and down period is for. and i think that could work out well for the types of companies that i mentioned >> and, you know, this argument about kind of growth versus value has been going on for a long, long t i guess for the plays and the picks that we're talking about, these have to be investors with a relatively long-term horizon we are talking about probably three to five years. you like macy's, best buy and exele energy talk us through why you are not scared of wading into that territory. >> well, you know, over long periods of time, there is a lot of empirical evidence that value stocks do outperform growth

stocks the past ten years has been an exception. we've seen just the opposite happen i am betting that eventually we'll go back to what typically happens over long-term trends. and i think we have an opportunity now to buy some really oversold value stocks that have great yields and are likely to continue sustaining those yields because they have prettyood cash flows so that's why i'm really favoring these kinds of stocks right now. you know, energy of course has been really out of favor we saw a plunge in oil prices. in my opinion largely due to the trade war and threats of higher tariffs which could slow down global economies so i think that's another area that i think you have an opportunity to buy some energy stocks that have pretty good yields >> okay. and let me mention given what's happening with trade war and tariffs, of course we have the round going into effect this weekend. we have the president tweeting again, barry, this morning, saying we don't have a tariff problem, he says we have a fed problem. they don't have a clue he's also upset as i mentioned about that move in the euro.

he says it's dropping against the dollar like crazy. so do you somehow have to take that into consideration here when thinking about how well these stocks you have mention ready going to perform, especially a name like apple over the next several months here >> yeah. that is definitely a concern apple in their case, you know, i think that's already been factored in. and it's actually done better in august than the market as a whole. aarons doesn't have any exposure internationally and from an international standpoint, chevron is doing l&g, and they're really looking to move ahead in that area so i think we can offset those and those types of companies i will say though as we look at the market part of what's driven it has been the shrinkage. everybody talks about the demand side but what about the supply side we've gone from 8,000 to about 4,000 names in the market. and as we sort through all of that, we've had a lot of buybacks that's slowing down right now.

ipos are jumping up right now. that can put a slowdown on some of that growth area and help me and my friend on the program with our value stocks. >> then finally, and quickly, vahan, the moves in bond markets. would you describe them as extreme as worrisome, as something to be leaned against or leaned into, real quickly >> very extreme. i never in my life would've thought we would have seen negative interest rates in so many places. i think this might be an opportunity to lighten up on bonds and go into some of these stocks that have very decent yields with all due respect to the president, i don't think we have a fed problem. i do think we have a tariff problem. >> all right we'll leave it on that controversial point, guys. really appreciate it with some brave picks there for the fall now to one of the biggest drivers of this month's wild moves. it is trade, and beginning sunday the country's busiest port will feel the impact of the latest round of tariffs. the impact is sizeable jane wells is live at the port of los angeles with more for us.

>> reporter: hi, kelly yeah, this really is the gateway to asia. and they had just record-setting volumes through the third quarter as retailers are trying to frontload, get everythingin here before these tariffs hit on sunday as of sunday the port tells us 98% of the goods coming in from china, so 2% won't be, tariffed. we are talking about $164 billion worth of goods. but we are already starting to see the changes in the supply chains only one was from china. two are from korea we had one from vietnam. the one behind me right now is was taiwan one of the side effects of all this coming in so early is we are starting to see the containers stack up and congest the port again because warehouse vacancies are way low. it's below 2%. the question is if the ships that arrive starting sunday and these tariffs start to hit things that consumers buy more often like clothing, how much of that 15% tariff will be passed through to the consumer?

is the consumer going to notice? is the consumer going to pull back spending? kelly, we just don't know. >> are we going to be watching, counting the ships there, jane, to try to figure it out? >> reporter: well, certainly in terms of volumes, do not be surprised if this record-setting third quarter we've seen is followed by a drop in the fourth quarter because if you do year over year comparisons, rt fourth quarter last year was huge year as everybody was trying to get everything in before january 1st. so we could end up with a flat year in terms of volumes at this major, major port facility considering the tariffs, flat is good >> we'll take it jane, thanks very much jane wells at the port of long beach for us here's what else is ahead on "the exchange. >> coming up, from tariffs to attacks from the president, the auto industry in the spotlight today. we'll look at the president's claims against gm and whether where the tariffs

take the industry next plus, a look at one investment that's seen so much demand that the pace of demand is setting records and dorian expected to hit florida as a category four hurricane. we've got the latest this is "the exchange" on cnbc

welcome back to "the exchange." president trump once again taking aim at general motors today. let's get to phil labeau in chicago. >> and he did it the way he usually takes aim at a company, through twitter. he sent out this tweet today essentially saying, you know what, gm, maybe you're not as big as you once thought you were general motors, which was once the giant of detroit is now one of the smallest auto manufacturers there. they moved major plants to china before i came into office. this was done despite the saving help given to them by the usa. now they should start moving back to america again with a question mark there as if why aren't they coming back to america. when you look at general motors in china, by the way, they've been in china since the mid- to late '90s. they were one of the first automakers to go into china. sold 3.6 million vehicles in that country last year number two right behind volkswagen they're basically building in

china to supply china. there's very few oose vehicles that are exported, in fact, of those that are exported, only the buick envision comes from gm and is sold here in the u.s. they sold 30,152 last year the president's tweet comes at a time when the uaw contract which expires on september 14th is in the midst of intense negotiations that are going to rachet up soon here's the employment level in terms of hourly workers here in the united states, now general motors is the lowest of the big three in large part because they've become much leaner and more efficient here in the united states, and, again, a reminder that uaw contract expires on september 14th. kelly, when i re this tweet, the one thing that i thought to myself was does the president realize that they set up the plant in china because the deal was if you want to sell in china, especially going back to the '90s and early 2000s, you had to partner with a chinese automaker in order to be there it's not like, well, we are going to move a plant from the

u.s. to china. >> they required joint ventures and a lot of things like that. it reminds me of what the national retail federation has said they said a lot of the stuff we make in china we sell to the rest of the world. so if you're going to have us make it in the u.s., that higher cost is met with a lower selling price for most other countries than ours. >> right and the vehicles with emake here in the u.s. have predominantly sold here in the united states and the u.s. is big on pickup trucks and suvs. we like larger vehicles, which is the reason why the big three always have struggled to do well in europe because they couldn't export from here to go over to europe and europe is so competitive for the plants that are there, it's a different market and different dynamics >> china is general motors' largest market, phil it has been since 2012 why do you think they keep getting the president's eye? you've talked before -- >> it's the closing of the plants >> production continues a pace >> correct >> for all of therhetoric and

finger-pointing that we've had for the last couple of years, has anything really changed for the auto supply chain? >> you mean in terms of where the automakers are building their vehicles not dramatically yes, there is more production here in the united states than there was let's say five or six years ago. and part of that could be some of the jaw-boning that has come from the president you've seen, for example, ford has increased production of some vehicles here in the united states and no doubt the president has been a part of influencing those decisions. but by far, this is an industry where you build and you sell in the same market, same region it just does not make sense to build in one region and ship to another. few exceptions there, but generally speaking that's the rule >> stay right there, phil. he is a revs institute editor, paul and you've seen that this is an ill-timed move by the president to push car production to return to the u.s >> well, it's actually ill-timed for several reasons.

first of all, you know, pig production is being hurt in iowa because china is cutting back agricultural imports of port to china from iowa. so you have this tit for tat trade this cng and both sides are losing producers on both sides are losing but not only that. look what's going on at the uaw these days the car companies are about to start their contract toss with the union. but just a few days ago, the home of the uaw president was raided by federal agents now what's this all about? well, we don't know the full story yet. but we do know there was a big kickback scandal at fiat chrysler a couple years ago involving these same kickbacks now the uaw has always had a squeaky clean practice in reputation so something's going wrong here. that'sgoing to throw a big

wrench into all these auto talks going on just at the time when trump is coming in and trying to disrupt trade flows and globalization that, guess what, were not going to be disrupted any just as phil said. >> so let me ask you both before we go about tesla. the headline today is that they are going to be exempt from some tariffs in china phil what, do you read into that >> well, it's not just tesla tesla gets a lot on the news and when this first came out, a lot of people said, wow, tesla is getting their tax waived in china. well, all electric vehicle purchases will have their tax waived in china. certainly it's good news for tesla. look, the chinese government has made it clear, they want to boost electric vehicle sales they are already the world leader worldwide in that area. they want that to increase in the future so for tesla, this is certainly good news. >> and, paul, what does it tell us between the spat between these two countries because we had a costco open in china this week we now have tesla effectively

being exempt from tariffs because its product is in such high demand in china how much is really changing on the ground >> well, things are changing in the rhetorical sphere definitely, no doubt about that. and to an extent, things are changing on the ground because rhetoric does affect reality on the other hand, these two nations are really joined at the hip in a lot of ways and this effort by politicians to sort of fight this trade war is really running into a lot more sticky wickets you might say than politicians on either side have imagined and what they do is just ramp up the rhetoric even more and get into stickier situations, i.e., the agricultural situation in the midwest. >> right as sort of the canary, the tell for where this is all headed guys, thank you both, really appreciate it. phil and paul. coming up, there's a shift happening in global real estate that we haven't seen in seven years. we'll talk about what that's telling us and where the next

hot markets are ahead. plus, tennis goes high-tech. a look at how new technology is changing the game and the companies cashing in on it dot n'go anywhere. "the exchange" is back in two.

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welcome back to "the exchange." shares of campbells soup are higher the organic growth has beat

forecasts. a lot of relief there for shareholders, shares are up 7% big lots also higher after beating on the top and bottom line the discount retailer says it's confident it c successfully navigate tariff-related head winds. big lots shares rising today as well and check out wti crude on pace for the worst day in two weeks but still on pace for its best week in seven. we just got a rig count, and those numbers show oil drillers cut 34 rigs in august. that was the ninth straight month of cuts. and there is wti crude down nearly 3%. while the east coast is on high alert as hurricane dorian heads towards florida, the east coast hasn't been hit with a category 4 hurricane since 2004 >>eporter: we are continuing to track dorian's strengthening as we head throughout the afternoon. still a category 2 storm but as you look at the satellite loop, you can see it getting that well-defined eye. that tells me it will become a

category 3 later on this evening, essential through the overnight. and you can see the latest tracks still pushing it to the north and west before it jogs straight west towards the bahamas and towards the florida coast by the time we get to early next week. now it is forecasting to become a category 3, then a category 4 and approaching florida as a major category 4 storm, possibly a category 3 if it does weaken with that interaction with the bahamas over the weekend so my biggest takeaway as we head towards labor day weekend, if you live in florida, you need to keep an eye on this forecast. this is a very dangerous situation for the entire state of florida, a very slow-moving storm will approach, will bring a lot of rain and dangerous storm surge. we'll continue to keep an eye on dorian and bring you the very latest >> i know a lot of people changing their plans and clearing out thanks very much i appreciate it. now for a cnbc news update >> here's what's happening at this hour.

in tallahassee, florida governor ron desantis is warning residents to prepare for hurricane dorian as it could become a multi-day storm >> this is a major event we still have some degree of uncertainty. but i think if you look at the different forecasts, you see a potential impact for south florida, potentially going all the way up the coast of florida. >> walmart is trying out a new health care clinic format. the retailer is testing the pilot called walmart health at a location in georgia. the two clinic will offer hearing and vision tests and counselling sessions patients will be able to schedule their appointments online and many who die while waiting for a kidney transplant had actually received multiple offers for a new organ researchers from columbia and emmer university studied data involving more than 350,000 patients who were on the wait list, and they found that 76% have received at least one offer. the main reason for the projection by the transplant

team was apparently concern about the quality of the organ that is a cnbc news update at this hour. kelly, i will send it back to you. >> rahel, thanks very much here's what's still ahead on "the exchange. >> up next, a very bearish day for beauty as ulta sinks the potentialpurdue settlement drawing lots of criticism. walmart wants to sell you groceries, clothes, prescriptions, and now be your doctor and apple may finally start opening up its very closed systemso o, rtf. pharmacist-recommendedumbee memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life.

let's catch you up on a couple stories that should be on your radar today it's time for "rapid fire. contessa brewer, the survivalist, bill griffeth, and meg tirrell. but that's a story for another time the first we want to talk about is ulta beauty because check out the shares they are down huge today in ugly earnings missing in both the top and bottom lines they slashed guidance. we are talking about a 29% decline right now. their comp store sales disappointed the cosmetics industry has been struggling as a whole as of late they said trends like contour

and brow styling have gotten stale. this is also significant they noted that consumers are bypassing stores for some digitally native brands like glossier and if that's true, then one of the hottest parts of brick and mortar is cracking because people are going online. >> and especially when you assume that people if they want to try out a new brand of cosmetics they actually woman the want to see what it feels like the fact that g lossier is proving to be real competition, it makes sense to me that you would go online and buy cosmetics after you've tested it out. but the testing it out is the important part of that can we just get back to people aren't contouring or doing the brows? >> i wanted to bring that up why aren't they? [ laughter ] >> for all of those who do not know what contouring is, this is the tan part that makes your cheekbone look chiselled or your nose look super skinny and your

brows look super arched and defined. do they see what teenagers do now? they wash their faces and go to school >> but here's the thing. i don't buy that this is - >> alicia keys started that. >> all natural movement a couple years ago. fortunately they moved away from that idea. but it's just i don't necessarily understand that all of a sudden all of these trends came to a screeching halt in this quarter >> but don't you need to keep replenishing >> it takes a long time to go through that stuff >> i'm wondering if it's not more about the digitally native brands >> there was a time when ulta beauty could do no wrong >> it was one of the hottest stocks anywhere.

now, i mean, just today it's down 30% that's unbelievable. >> i think it was the best performer for the decade after the bottom in 2009, the best performer in the s&p 500 and now this all right. some states are pushing back on purdue pharma's proposed settlement of up to $12 billion in its roll in the opioid crisis future drug sales, how much money would be guaranteed and the sackler family's contribution, meg. so this opening gambit, the bottom line is that that number needs to go way up >> the states want it to go way up what i think is really notable about this is that the states are pushing back and what was surprising about the settlement news that came out earlier this week from purdue was that the states seemed to be potentially on the same page as the cities and counties the entire discussion around settlements here has really started to become states saying, hey, we should be fighting our own battles here and the cities and counties have been banded together in one huge federal consolidation of cases trying to fight themselves and you actually saw ohio come

out today, the state of ohio saying, wait, these two counties are starting to settle and they're going to go to trial themselves hold on, the state of ohio needs to fight this on behalf of all of our counties. so it seems like the states versus cities theme is coming up again. >> and one detail that kind of got lost in the sauce when they first introduced this and you brought this up, the $12 billion that they are proposing as part of this settlement is dependent on -- will come from future sales of oxycontin so in order to get the money you need to clean up the mess, you need to sell more of the opioids to get this thing to work. >> but is it just acknowledging the reality that there is some demand and usage of opioids and so we might as well funnel those proceeds? i understand the point, but are those drugs still in relatively high demand or has that been totally supplanted >> they still do sell those drugs and get some revenue from those drugs. it would also be a drug they are waiting to get approval for that treats opioid overdose, so reverses the overdose.

but any revenues that the company is getting would be given to the settlement and the sacklers are washing their hands. >> the states want more cash up front. >> and we'll see how much more they can get from the family too, especially if it goes criminal sort of related to this, walmart is announcing that it's moving further into the health care market they are opening up a new clinic called walmart health in georgia. you can pick from primary care, dental labs, x-raies, counselling, and if it goes well, walmart could open more clinics in the futures they've even registered walmarthealth.com. >> what's interesting to me is that the trial store that they have opened is in a separate building it's next to walmart, but it's not inside i would think that strategically, they said they did it for patient privacy kind of reaso but strategically speaking, if you want someone to stay in the walmart ecosystem and already they offer the bank, the eyeglass place, the hair salon >> which are all inside the store.

>> exactly that you would want that health care clinic to be inside the tomorrow and they've had some smaller clinics inside their retail outlets. i'm interested to see whether the stand-alone becomes the wave of the future. >> my guess just thinking about the strip mall we had with the walmart growing up, if they were to place it next door or sort of in a strip mall caddy corner, i understand the privacy thing i have gotten my hair cut in walmart and you don't always want to be on display. >> i have long been saying that i think it's going to be the free market that's going to help bring the cost of health care down i think this will be a big part of that right here if this works. you know, it's a test run still. but tween what they're doing, what cvs has been doing, what walgreens has been trying to do. >> and if i were cvs and walgreen's, i would be feeling a little nervous about this. >> the fact they're offering

mental health care services is really, really interesting to me and i think you made such a fantastic point that maybe this is a big business for walmart independently of just trying to increase foot traffic. there is an issue with paying for or getting mental health care paid for right now in this country. there is not enough access to mental health care this could really solve a big problem. >> also the research shows and the new trend shows that if they fundamental health care, it lessens the cost of the medical care because sometimes you're in for long chronic care because you're not treating the mental health aspect of whatever the underlying problem is. >> well, we'll see as they roll out more of these locations. it sounds like that's what they're going to do. finally, today, you don't have to go, speaking of stores, into an apple store or a certified location anymore to get that iphone repaired. the tech giant is finally allowing them to get approved at the same price as authorized service providers. basically apple is responding to the reality that it doesn't have the capacity to handle all of

these repairs. >> however, the economics don't bear that out because let's not forget a screen for an iphone costs $350 >> to repair or replace? >> to replace it so if an outside firm wants to replace your broken screen, it's 350 bucks. apple charges 3 29d dollars to replace your screen. so who are you going to go to, the guy on the corner where you're going to be charged not only for the screen but for the labor and everything else, or you go to apple and you get it for a lot cheaper. >> if you can get there to the apple location >> because if you buy a phone and you live in north dakota, where are you going to go to go get your iphone replaced? there is a lot of people who live a long drive away from an authorized either an apple store. >> you can do it by mail, you know >> but who's going to do without their phones

>> not me. >> you couldn't do that? >> only in an apocalyptic situation. >> i don't think bill could do it either. >> the reason you go to one of these unauthorized fixers is because it's cheaper and just getting authorized seems like it won't keep it cheap. so does this change anything >> right is there going to be a cut-edge industry you can go to the guys who aren't certified for the cheapest you can go to the ones in the middle but thank you all very much. contessa, bill, and meghan, have a great weekend. coming up a look at one area of the market that's break records but may not be on your radar. that answer is next. >> want to get social with "the exchange"? email us at at theexchange at&t cnbc.com or find us on twitter at cnbctheexchange and@kellycnbc.

welcome back state and local governments are selling bonds at their fastest pace in almost two years and investors can't get enough of them. demand is through the roof with muny bond funds seeing more than 30 straight weeks of positive inflows and nine straight months of positive returns. and the debt issued in august has been the highest so far this year for more i am joined by nisha patel. and what is behind this? is it simply this grab for yields any part you can get it >> it is part that and we are in a much different environment this year, more of a bond friendly environment. they are trying to do it in every way they can for high-tech individuals, munies have been the best solution >> have we seen an acre segrelation there because of the tweets over the last couple of years? >> because of the tax reform that started in 2018, the state

and local is capped at $18,000 so you have investors in california, new york, new jersey, they are looking to park their money in those state-specific bonds because it's the most effective. >> so how low have the yields fallen are we historic lows? >> we are close to historic lows so right now an a-rated 10-year bond is roughly yielding about a 145, which, you know, keep in mind though if you're looking at a high tax bracket, it is still pretty attractive at 240 >> so still a little bit higher than what you'd get in a treasury this is such an interesting question because, you know, obviously ten years ago we had a lot of focus on whether there was going to be a wave of defaults throughout the muni bond headline. where you know that issuers are being encouraged to take on more debt, are you wonder are they setting up for future defaults >> yes we are looking to be now more cautious than ever kind of going

into the future. here we are ten years into an exik expansion certain states haven't gotten their act together, if you will. >> the northeast largely, illinois, california perhaps >> so california's situation is a little unusual their economy and their kind of revenue stream is very cyclical, very tied to the economy a large portion of their economy is tied to income revenues but when that shifts, their credit ratings can dip and california was a bbb credit post 2008 because of the massive downside shift >> because they were caught flat-footed. i still am comfortable with this -- more comfortable than maybe corporates or treasuries how do they know what's safe >> this is where professional due diligence is very important. i think mumis have over a

million, very different than the corporate bond market. so you really need to be doing the appropriate due diligence. and generally speaking, munis have had a low default rate. but this is due to the unfunded pension liabilits, due to some high debt that some cities and states are facing. this is where professional management is going to be very important. so a lot of our clients appreciate that due diligence that we are going to still buy you the highly-rated aa but let's make sure we are staying out of the land mines. >> so at least go with the sort of highest rated and then for the states stlrks anything that keeps them from issuing more debt in this environment? >> august we saw certainly kind of a major uptick in terms of issuance which is to be expected given that yields are as low as theyveryttractive for financing. but keep in mind in relative terms, issuance is still rev tilly lower from from a historic

basis. where issue errors can no longer refinance outstanding loans. so because of that a lot of that issuance has been new money, new project issuance, which we have seen a little bit of an uptick in august. but it's still historically is lower. now i imagine for the remainder of the year, we probably see issuers trying to take advantage of these yields and catch up with that. but on the demand side if demand stays at these pace and breaking-record levels, i don't see an issue with the issuance being absorbed >> thank you, nisha patel. let's get over to julia boorstin for a market flash on lionsgate. >> shares plummeting down over 8% on a report in the information that comcast plans to drop starz which is owned by lionsgate. and if it falls through, that would eliminate about one-third of starz u.s. subscribers. comcast is the parent company of

nbc universal. we see lions gate shares down nearly 9%. i reached out to comcast they have no comment as of yet i have reached out to lions gate and have not heard back from them comcast shares trading pretty much flat. >> that's a biggie julia boorstin coming up, from the hardwood to the hard courts, technology and analytics are all the rage in sports these days hopefully he'll fare better with the racket than he did with the basketball "the exchange" is back in two. at fidelity, we believe your money should always be working harder. that's why, your cash automatically goes into a money market fund when you open a new account. and fidelity's rate is higher than e-trade's, td ameritrade's, even 10 times more than schwab's. plus only fidelity has zero account fees and zero minimums

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welcome back these division i tennis players spend a lot of time practicing at this typical looking tennis court in new jersey, but high-tech data analysis is changing the way future pros are

learning big >> you can't really see all the little details with human u eye than you can with a camera >> you can slow it down and lrey see where you're making mistags. sbl owned by one of djokovic's coaches and features a system based on israeli technology. >> now you're ball is five miles an hour or slower or more spin >> the technology made an immediate difference for me, showing exactly what i was doing wrong like dropping my left arm rather than keeping it up to stabilize the ball it goes beyond tennis, too the sport's bio mechanics looking for asemitris in the player's retime. >> to be a better leet, the science says you'll have reduced injuries and a longer career >> i feel every generation gets

better partially because technology gets better. >> and eric joins me live from the u.s. open. the young talent has been a real theme. cocoa, taylor's big win yesterday. are they all using this technology should we expect norm high school kids to be using anytime the future >> the technology is tartistartt spread it's going to more courts across the country. a lot of little kids under 10 years old, their parents are bringing them into the courts. they're working on it so they can get that good by the time they get to high school age or u.s. open age and a lot of courts, people like you and me, d use the technology if we wanted to really compete in those working people's groups for the old folks above 35 years old so it's spreading and really accessible to anybody who wants it it's amazing you've done basketball, tennis next week, got to get you u on the b football field >> or maybe race car driving that would be a good one, too. >> thank you so much

enjoy. coming up, there's something happening many global real estate that hasn't happened in quite some time. we'll talk about that next my biggest fear was losing my independence. mmm... good. so i've spent my life developing technology to help the visually impaired. we are so good. we built a guide that uses ibm watson... to help the blind. it is already working in cities like tokyo. my dream is to help millions more people like me.

welcome back news from the real estate market a new report showing a shift in investment flows >> investors became -- a new report found the acquisition, a little bit fmore in the second quarter alone, acquisitions dropped 37% from a year ago why? prices in the u.s. are at record highs and the returns are low so hard for investors to put money to work in the u.s. right now. the yield isn't what it was even a few years ago. investors are increasing spending on the office and apartment sectors after making a big push last year they're putting more an tall into the new york city area, boston and las vegas but less in

los angeles, phoenix, san jose and here in washington, d.c. now the recent drop in interest rates hasn't come into play because of how long the deals take to close. >> thank you speaking of shifting real estate restments. analysts say hong kong's booming housing market is about to take a major hit from the protests there. my next guest says hong kong's pain could be new york city's gain with e real estate here at home headed for a big boost. dolly joins me now you think you're seeing some of the money coming this way. >> we're getting so many inq inquiries. dozens and dozens from people we sold ten years ago, 15 years ago, 20 years ago. they were out of the market. home in hong kong. buying there making tons of money. now they're saying to us you know what, we need asafe haven we need to go somewhere else what have you got? >> are they diversifying their portfolios or get out of hong kong and come u.s. >> so far, safe haven, so it's

worse and it may turn into more than that. it may turn into moving here >> $50 billion or so you think has left the hong kong mark >> already >> and they're coming to new york but u they could go anywhere in this country >> they could, of course but they know new york they've been here. they've made money here. they were happy here they understand it so new york is going to be a definite target where they're going. l.a. will get their share. seattle. you know, other areas, but i think new york is the wig winner >> is there anything the chinese could bo to clamp down on this we're talking about china itself, we've seen it happen and that's been a big reason why real estate has suffered especially high-end. what if there's this resistance to this flight >> the problem is it's hong kong so the money is out. so they don't really have control over that money. and i'm telling you, it will go out. it will come here. >> is it a big enough wave it can help turn the tide for what's been a really hard hit

segment of the real estate market >> it's christmas for developers no question. what they're asking about is new and shiny and that's all the twopers need to sechlt right their new shiny product that's been lagging so for them, literally, christmas. >> wow so they're looking to new developments new york and a couple of other major cities you think the money that's leaving is already gone or is this the tip of the iceberg? >> it's gone out of china, so it's in hong kong, could be in singapore, elsewhere, but it's coming back to new york. >> so this isn't necessarily hong kongers per se. this is just money that's living in hong kong for the time being but could have chinese people behind it. >> absolutely. almost everyone we have as a client in china has money in hong kong that's been out for a while. so all those people are the ones inquiring. so it's very interesting and i think it's going to be terrible for hong kong and for china. >> oh, really trouble iing to se

what else could happen there as the capital and as the people leave. dolly, thanks very much. and that does it for the change today. i'll go join bill griffith for "power lunch" which starts now >> thank you here is what we are having new at 2:00 on "power lunch. stocks slightly lower right now, but still on track for their best week since june just 3% below their record highs. are we setting ourselves up for a september to remember? and while the market gets back on track, we're days away from those new tariffs going into ekt could the trade war trigger a global slowdown? we have a series of special reports on that. then later, hard seltser sales are spiking and that's helped sales of boston beer have its best year in nearly a decade the ceo will join us u coming up "power lunch" starts right now