it's a 2 to 2 1/2% economy i'll take that given we lost manufacturing and energy. >> thank you very much we got three yeses, a maybe and a yeppers. whatever that is thanks for watching "the halftime report" have a great weekend hi, everybody. thanks, brian. welcome to "the exchange". this is the last time we will hear from the fed chief before the next meeting in two weeks. let's go down to steve who has been monitoring the headlines and bringing us the very, very late zble latest. >> jerome powell speaking in switzerland talking about the economy being in good shape. he sees the labor market as tight. he does say the federal reserve will use the tools it has to help the economy i didn't find what he said especially dubbish he wasn't talking about a fed chair about to cut by 50 basis

points he could have been talking like a fed chair about to cut 25 basis points he talked about the uncertainty about trade, global economic leave. he's standing next to the swiss national banker who is pretty well known in global monetary policy circles and of course followed very closely as well. and he says the trade uncertainty is really potentially holding back some companies on investment. so not a very dubbish one. he's very worried about the economy. he says the u.s. economy is in good shape and he thinks policy is in a good place he does warn that we are in a world of low inflation, lower growth, and of course lower interest rates where central banks have less opportunity or less ability really to help economies in downturns. >> and steve, this will go on still for a few more minutes just to recap, he's both said that the economy continues to perform well and is in a good place and said they will act as appropriate to sustain the expansion, so hitting both of those notes. we're watching markets and

seeing the dow up about 86 points right now not a ton of movement in the dollar or yields as we continue to get these headlines as he's emphasized both possible outcomes it seems. >> i think that's right. if you look at the data this week, i think it's still the same week, kelly tell me if i'm right about that. we started the week with an ism manufacturing that was negative or that showed contraction in the economy. we progressed along to show a strong service sector and how we had good jobs. today's jobs report has coming for everybody. you're a bull, you're eating the hay out there in the field if you're a bear, you're feeting on the carcass is what you might want to say. the carcass has, you know, downward revisions, they came in below expectations retail in double digit declines in terms of hiring and if you're a bull you've got participation going through the roof you have a solid household survey this jobs number disappointed me, kelly. i thought it would be more

definitive in telling me which way the market's going i think powell and fed policy is reflecting that m -- ambiguity. >> we have a news alert as well coming out of the oil patch right now. rig counts we saw an ugly picture here last week what have we got today >> maybe not ugly but still not positive rig counts, u.s. oil drillers subtracted four rigs from the total count over the course of the past week. so we're now down to a level of 738 oil rigs in the u.s. that are active right now that's down 122 rigs from the same point last year this does represent the third straight week of declines for oil rigs that are active in the u.s. it does speak to the idea that oil prices have been moving lower near to medium term. we'll keep an eye on those oil does right now remain at near the session highs back over to you. >> we've talked about the toll

that's taken on the energy patch. we'll see you in a moment. we want to talk some consumer here? no we want to talk about the jobs report and the u.s. economy and the headlines we've gotten from fed chair jerome powell just now joining for me more is kim forest lindsey is the chief economist at stifel. it's great to have you both here as steve said, there is something for everybody in the jobs report. what are you hearing from fed chair powell thus far? the implications as you see them for future rate cuts >> well, i think powell was pretty much middle of the road we did see some confusion earlier in the week hearing from different fed officials talking about the strength of the economy versus calling for a larger maybe 50 basis point cut. there was a lot of attention on powell's commented today, whether or not he was going to indicate one side or the other instead he continues to say the economy is performing okay but

we want to continue to support the expansion which really supports the notion that the fed will follow through with a second round rate reduction in september, but it's not going to be a 50 or 75 basis point cut. likely just a quarter rate reduction. >> what's the justification going to be? while the payroll report slowed a little, the trend overall has still been fairly strong the unemployment rate numbers look very good the wage numbers look good the african-american unemployment down to 5 1/2%. there's a lot of strength in the labor market if the fed is taking the slow down as its justification, that's a touer case to make than if they were to say we've had breaks too many times. >> i don't know. going into this report it was very clear we saw weakness in manufacturing, housing, business investment while this report wasn't dire to suggest a recession is imminent, it does suggest that the labor market is weakening. it was a weakish report which then doesn't bode well for the consumer which has been the sole support for the economy.

if we start to see a slow down in hiring, that's going to undermine the consumers ability in the second half wages were okay. we've certainly lost some of that momentum. we're no longer seeing an upward trend. typically when businesses begin to layoff workers, they're on the lower end of the pay spectrum so we wouldn't expect that downward pressure on wages to show up for another month or two or even three. right now we're seeing the groundwork looking at that headline number that the labor market is showing red flags of losing momentum. this is supporting the fed's idea that the economy is beginning to slow across a number of key sectors. >> kim, you're a stock picker, so the macro seems to probably collide, sort of force its way into your point of view. are you seeing any evidence of a slow down yet? are you changing your investment strategies >> no. and i think it's because i'm probably an anomaly. i look three to five years out

and nobody knows what the macro is going to be there i'm just looking for good well-priced companies that are going to grow in the future. >> and you're still finding a couple of those out there. we'll come back to those picks in just a moment let's get back out to steve with a couple more headlines from jerome powell as he continues to speak in switzerland. >> kelly, you'll remember the editorial by former new york fed president who suggested the federal reserve should take political outcomes into effect in setting monetary policy in switzerland jerome powell was asked about directly here is the fed chairman's response >> it will be a new part of your mandate? >> absolutely not. political factors play absolutely no role in our process and my colleagues and i would not tolerate any attempt to include them in our decision making or our discussions. that's not our dna our dna is what i mentioned

earlier. we're strongly committed to nonpolitical decision making we serve all amecans regardless of their political party. and it's just simply wrong the idea that we would deviate from that is just simply wrong and so the answer would be a hard no let's say. >> we couldn't agree more. >> okay. so that is the -- i think the first direct response, the first response by a fed official let alone the fed chairman to the dudley op-ed that was out there. you didn't hear the question but he said should our political outcomes a new part of your mandate is what dr. martin meyer asked him that question. there is a definitive answer for you and the fed obviously at the time put out a statement from an official. >> they did. they've kind of tried to distance themselves from that quite a bit, steve

thanks lindsey, let me put it to you. political implications or not, factors often do play a role the disparity we've seen in points of view with the fed to me suggest it's because there's a wide range of view about this economy. we talked yesterday about what sam said when he said look, my typical recession indicators tell me there's one coming but then i have other signs in the businesses i run that tell me there's not a slow down coming is that why we're seeing such a confused picture out there >> absolutely. again, we heard from a number of fed officials even in just a few days talking from opposite sides of the spectrum. extremely hawkish and extremely dubbish. there still is an ongoing debate at the fed chairman powell has been very clear that market pressures, political pressures will not influence policy so he has been very clear that the fed will reserve their autonomy from the federal government of course, that's key to the fed maintaining confidence that they are going to direct policy because of their mandates.

stable price, full employment. not to gain favor from the administration or to cater to the whims of the electorate. i do think powell has been very clear all along. this is nothing new. the fed will continue to struggle over whether or not they do see weakness or strength around the corner. >> in this mid ftd st of all of we've seen a corporate rate bonanza. tons of debts being issued globally does that make you bullish or bearish on these companies we are seeing leverage ratios increase there is a gold rush here. >> sure. it depends on how they're going to deploy it, right? if they are just repricing their debt, that's okay. exchanging debt that was going to be up for renewal, you know, pulling that forward, i think that's okay. i'm a little less comfortable with the whole let's borrow to buy back our shares. it depends on what you're doing with that cash that you're

raising i guess. >> i know you're sticking with net app. thank you both appreciate it very much. kim forest, lindsey as we react to those headlines from chair powell this afternoon as well. the consumer has been the bright spot of this economy all year and that theme also continues today. costco and lieu lieu lem mulule same store sale results. brian, when lululemon grows its sales 15% year on year, we know they're clearly doing something right, but does that also tell you from the rest of your coverage that there's strength here for the u.s. consumer >> well, look, i think that's a good question. no question that lulu is one of the best performing brands out there right now. there's a lot of things that the company is doing internally to drive those results.

as i look at the figures that lulu reported last night, there's clearly also an element of what i consider to be a still very healthy consumer backdrop. >> so let's talk about the reasons why. for blue bllululemon it was thes business costco is putting up 5 1/2% increase in sales in august. if we're going to see a slow down, if we're going to see a tariff hit, where should we be looking for that to show snup >> i follow a wide array of retailers and brand. lululemon and costco, i getthi question from our clients and i go back to the july retail sales report which showed improving tr trends from june walmart's results were very solid. the only piece of sales weakness i've seen lately is maybe in the month of may when the weather wasn't really cooperating. but other than that, across the board, i see indications that

the consumer is really performing quite well here to answer your question, i look at the fringes i think i've made this comment on your show before. i look for choppy patterns are there indications that the consumer is starting to pull back in funny ways i'm not seeing that at all right now. >> that's pretty clear from a guy who looks at this stuff very closely. before i let you go, your thoughts on lululemon specifically your price target is $225. what are they doing right? >> well, if i step back and say what's really happening at lulu. this is a company evolving from just a few years ago that was really a yoga brand. they focused on a relatively small portion of the population. they are morphing into a leading athleisure brand they're going after the men's business they're doing that very successfully they're continuing to grow well in their core markets in north

america. i'm in europe right now. it's becoming a bigger brand over here in europe. i think over time we're going to be talking more and more about lululemon as we talk about nike. this is a leading powerful athleisure brand. >> and developing water resistant wool quite well. thanks very much appreciate your time we'll keep monitoring fed chair jay powell who is participating in a live q & a in switzerland. we'll bring you further headlines as we get them here's what else is coming up on "the exchange" >> ahead, the government flans to take fannie and freddie private, a move 10 years in the making, but is it the right one? a look at what would change. plus new jersey governor phil murphy on sports gambling and the tariff impact on manufactures in his state. and what one university is doing to offset lost revenue from fewer chinese students

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welcome back to "the exchange". let's get straight back to steve liesman with more headlines from jero powell. >> fed chair jeff rome powell in zurich taking questions from the audience and answered a good

one. voters say 50 basis points and some are saying don't cut at all. here was his response to that question about all the different viewpoints on the committee right now. >> it's challenging and we are clearly at a time where there's a range of views again, i do think that's a very healthy thing. we will of course reach a decision i expect we'll have a strong support for the decisions that we made as we had in july. i expect that will continue. but this process of having desperate views i think is not something that i feel concerned about. in fact, i think it's appropriate given the situation we're in right now >> kelly, there was another part of it right there where he said the situation is murky we talked about that a lot on your show as well, quite a bit in the 1:00 hour about how you make a case for holding, you can make a case for cutting. powell, like the prior chairman before him, doesn't want to front run his committee.

he needs to leave it up to the committee to make that decision. he's a little bit, i don't know, maybe more neutral than i expected him to be and maybe that's because the data this week on balance has been pretty good at pointing towards continued growth i still think we're going to be cutting rates, but where i say the debate is, it's in that october to december period after this initial quarter point cut that likely comes in september. >> reading between the lines there, more neutral maybe means a little less dubbish, but we'll have plenty of time to debate that we want to get over to meg who has a market flash what's happening >> more news in the brewing opioid litigation. the stock is on the rise after it announced it had reached a settlement with two ohio counts worth about $30 million. stock up 13% it's going to do $24 million in cash and donate $6 million in generic products to these two counties they are the first that are scheduled to go to trial of thousands that have sued the drug industry seeking to hold it

accountable for the opioid epidemic there is a lot more on the docket but put this is trial off the table. it's not the first to settle with this county endo and allergen have also reached settlement it's been a rough week pr mallinckrodt it was considering bankruptcy where the company tried to shoot down at a conference yesterday you see the stock's reaction the general counsel saying this gives it time to work toward a more global settlement >> they have finally rereleased plans to -- joining us with the latest details on what this means for the housing market potentially. >> the trump administration wants fannie and freddie

released from government conservative torship, but of course the devil is in the details. the treasurery plan does not end the dividend sweep of billions of dollars under the obama administration as of the end of q 2 -- those exceed the amounts drawn by the two from treasury by a collective 109.7$109.7 billion they do recommend they be allowed to increase their capital buffers which are currently at $3 billion. that would reduce the amount that goes to treasury. otherwise it leaves a lot for congress to do, specifically the plan calls for a private guarantor backstop for all fannie and freddie mortgages how much is that going to cost how much will it raise the cost of a mortgage? homeowners want to know. that is tbd. >> stay right there.

we want to talk i little bit more about this now with someone who used to run fannie mae it's great to have you here 37 what's significant about this announcement >> i think that's significant about it is that it's obviously been 11 years in the making but this is a really positive step forward in terms of getting to an ultimate resolution this plan would reserve the 30 year fixed rate mortgage it would put lots of private capital in frnt of taxpay-- fro taxpayer exposure. if executed well, this would avoid a significant disruption of housing markets those would all be good outcomes. >> that said, in fact, some of the reasons you're citing have people, investors in this market saying this plan doesn't change that much. i'll read you some quotes here the scope and intention are ground while details are sketchy. it's not clear this is a real

privatization and it would indicate as much intrusion as the previous system and existing ones. >> i would say this really builds on discussions that have been going on now for six, seven, eight years this is not inconsistent with the overall approach of the last administration it's very consistent with the efforts under three directors of the regulator over the last ten years. i think this is really kind of staying the course in terms of what the industry believes and what many policymakers believe is the right path forward. but there are a lot of details here that have yet to be determined and how those details issue umpimplemented could have effect on what the plan looks like. >> this could be an effort to get more private capital and lessen the taxpayer risk, but would you use the term or people that you talk to going to use the word privatization here? >> well, it's definitely privatization with a government backstop what i think is so interesting is not just this plan, but that

recently the fhfa director asked congress to be allowed to chart ter other companies in the same way that fannie and freddie are which would open up competition within the market. what investors really wanted, it may have been 11 years ago, but it is short memory when you talk about an epic housing and mortgage crash we had. investors really want that backstop you can't guarantee you're going to get them back into this market if they don't have some kind of government guarantee even if it's paid for by the private sector. >> that's where you don't want the disruption to the housing market as diana outlined about $300 billion has gone to the u.s. tru treasury from these companies. >> the extent of that flow money to the tr-- would come to an en. one obvious way to try to recap

tallize fannie and freddie is allow them to retain their earnings they may need to supplement that with additional offerings of security into the market to raise public capital, but i think, you know, this is a -- it's inevitable that this cash flow needs to come to annen if people want to recapitlize these two companies. >> the dow is at session highs after we heard from jerome powell speaking in switzerland the dow is hanging on to a grain right now of 106 points. that's .4. it's by far the outperformer the s&p is up 7 points nasdaq is only up 7 as well. it's roughly flat on the session. here are some individual movers. watching shares of docusign. it got an upgrade. was initiated at outperforming

rbc and the shares are up nearly 20%. michaels is on pace for its best week ever. up more than 34% since tuesday it's source sales where we talked about earlier and it's adding nearly 7% again today shares of zumiez are popping this afternoon and better than expected quarterly and full year guidance that retailer plans to open approximately 16 more new stores this fiscal year the shares are up nearly 9%. let's get out to sue for a cnbc news update. >> thanks so much, kelly here's what's happening at this hour, everyone north carolina's governor roy cooper says hundreds of people may be trapped by floodwaters from hurricane dorian on north carolina's outer banks this after the storm made landfall this morning. >> there is significant concern about hundreds of people trapped on okracoke island

there are rescue teams ready as soon as they can get in. >> harley-davidson unveiling prototypes of electric bikes it plans to sell. the bikes have small battery powered motors that assist in pedaling the company has not yet revealed a release date or the cost. and the crown of thorns rel lick saved from the flames at n notre dame was presented to the public today it was obtained and brought to paris in the 13th century. you are up to date that is the news update this hour i'll send it back to you. >> thank you very much. here's what's still ahead on "the exchange" >> coming up, big tech under fire groupon for health care and nordstrom's move to get customers in the door. that's all ahead in rapid fire

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welcome back let's catch you up on a couple headlines that should be on your radar. it's time for rapid fire here to break them down are bill, meg, and dominic

states are launching antitrust groups into facebook and google. both were reportedly look into the misuse of consumer data and their domination of digital advertising. michael rubin, the executive chair of sports fan gear highlighted facebook and google's dominance for his own company this morning listen. >> from a dollar spent today, to keep it real, i'd say of our marketing budget, the great majority is digital and of that is 50% social, which is really all facebook and instagram and then 50% google. >> big techs advertise dominance works for him but google is creating a headache for jason freed. because of other ads, he can't market effectively. >> google is forcing me to have to spend money with them so we can show up first ahead of other people who are using our brand name against us. it just doesn't feel fair. >> these anecdotes are going to

ay into what the state's a.g. is doing. >> i googled base camp he says the others coming ahead of him are all paid ads, but with little tiny des ignations. i googled it he came in fourth. the others are clearly ads. >> were you on a desk top? >> yeah. on mobile it's harder to see >> on mobile it's a much smaller screen and so if even you're aware something is an ad, and i've noticed myself do this, you're kind of trying to get to that result quickly and it's harder than it is on a traditional desk top. >> but is that your problem or google's problem >> i default scroll down. >> it's kind of scary that you actually see this happen in the medical world. if you google certain cancer drugs in a very hot area where there's a lot of competition, you often see the competitor's cancer drug will come up that is smart use of dollars by

that company, but also a little scary. >> right if it's not necessarily competing treatments that do similar things, but treatment things that do different things. >> there are folks who believe, and therye's a school of though these are utilities to serve the greater good you're presumably there to learn something more about it. the idea you can pay for access to the eyeballs first instead of getting pi getting wikipedia or the definition first means you're maybe not getting the full picture information. is there a social side where these companies have a responsibility to the populace at large to tell people what these things are first and then everything below that is ads >> i think the main question is does google end up going something to get ahead if it thinks some kind of regulatory thing is coming. fines are one thing, but if t there's bills to say it has to say such and such advertisement, we see it in tv commercials.

it's not crazy to think it could be coming online. >> i think that would be an equitable solution i'm not bothered by these ads. i get what you're saying about the social responsibility and it should be more like a public utility in that regard, but how else is google going to make any money? >> right we need them to be good at what they do as well. kind of related to all of this, something you might be surprised to hear, groupop offers pretty major discounts on medical procedures this is a report highlight people can find deals for hulun heart, and pull body scans an mri has a clinic in atlanta giving them away for tw$26 a po. >> it's crazy. i recommend people go read the full thing, but they cite this doctor who tweeted about this and said i've seen three patient whose came in with groupon for

these and at first i thought this is crazy. wow, those prices are really good then i thought our health care system is so messed up that people are doing this. you can get really good deals, but it shows how messed up the health care system is. another thing to be cautious of is it could encourage people to be getting tests for things they don't need. >> and self-diagnosing, right? you can go to web md for these things but to make a point, there is such a wide -- forget about the drug pricing and putting it in advertising and everything else. what's available in health care products pricing is so massive the spreads are there. this groupon thing, when i saw this story, i immediately went to groupon and i was trying to find somebody who could do some kind of test me for, even if i didn't need it it was only going to cost me $20. that's a co-pay. >> i need a clarification. i was under the impression these scans were being administered under prescription people are walking in off the street with a coupon and just

getting a cat scan because it was $26? >> i'm not sure i know the answer. >> if it's for prescription purposes, this is another example of the free market trying to bring costs down for health care. >> this could be a good tool, but maybe don't get one if you don't need one. >> don't just walk in off the street. >> or it's an alternative source of income to be able to keep the machines if they aren't getting enough business through the standard channels. >> good luck to them to give it away as such a loss, you might get people in the door once. >> it's like cross selling we'll give you a free toaster oven if you come in and sign up for a checking account. >> i will say the more expensive the wine, the better you would hope that wine is going to be, so if you're paying $26 for a cat scan, is it going to be clear? >> is it a product that needs more pricing transparency? anyway, let's talk about disturbing news out of american airlines a mechanic was arrested and charged with sabotaging an

aircraft, tampering with its navigation system before a flight in july phillip is joining us. you're got to tell us about these details. what exactly did he do >> it's a scary incident here are the facts according to the government complaint about what happened on july 17th it was an american airlines flight scheduled to leave from miami to the bahamas around american airlines mechanic, a man who has worked for the company since 1988 he altered the air data module when they turned on the engines, they realized something was wrong. there was an error message we should point out this was not a case where it's going down the runway and about to lift off they found this early so they aborted taking off keep in mind that according to the government, author mechanth was arrested, wanted to cause a delay so it would force more overtime work and this is at the heart of this contentious negotiation that's been going on between the airline and the

mechanics union. they've had hundreds of flights that have been delayed or canceled this summer this negotiation by the way has been going on for four years this just shows you once again stranger than fiction. you cannot imagine that this happened but that's according to the government. >> did stuff like this used to happen in the pastor is this the first time you can ever remember or have heard of something like this >> it's the first time i remember somebody being arrested for sabotage on an aircraft because they wanted more overtime work. does this stuff happen if it does, not very often i don't remember very many incidents where there is a mechanic, somebody working on the planes who, you know, deliberately does something to an aircraft. >> work slow downs, those have been going on for years. >> right sure >> and these guys have been in court. they've been in court fighting this out. >> they got an injunction. >> yep exactly. >> which really helps with the relations, labor relations i'm sure if you've got an injunction against your own mechanics to

make them do their jobs. >> anybody think it's a black eye for american in general or is it just such a strange bizarre run off? >> it's a one off. it's a bizarre story, but this is not indicative -- >> they do need to work on their relationship with the mechanics because american is the one that's been having the problem. >> this made me think of the business round table statement saying we should, you know -- >> stake holders. >> yeah. and you just think about andrew often talking about the idea of the old companies that had employees who worked for them for their entire lives this guy worked for the company since 1988 it makes you think that's good business to have good relationships. >> to balance this out one point, an analyst did come out and name american airlines their best pick in the u.s. to give you a little balance to that. >> thank you troubling, but thank you finally, last but not least, nordstrom has been struggling to

boost sales with department stores, but the company is now saying their new local store in manhattan, they looked up online returns from macy's and kohl's. >> i don't understand the business mall. this is a very small store doesn't have any inventory the whole purpose is to go in, do the returns you can make appointments for shoe repair or beauty appointments or whatever it is kohl's takes returns for amazon, but you walk into the store and theoretically you can buy something. you're not doing that in these no nordstrom stores ho do you that make money? >> if it works, i recently went there to return something. it was a great experience. i walked inright there if they would roll that out to other online returns, i rarely buy stuff from them, but i would if i'm going in and out of there more frequently to do that, because it is a big help for

everybody, maybe i would look around if they do it in a store that actually has -- >> a normal store, but these little cubicles with no inventory, i don't understand. >> is this where hey offer haircuts too or is that the men's store? >> i've got to go to malls more often. >> they are great these days thank you all. coming up, new jersey governor phil murphy joins me to discuss everything from legalized sports gambling to state and local taxes. "the exchange" will be back with that interview right after this.

the first game of the nfl's 100th season is in the books the ratings for the game were up 14% from last season's opener and gave nbc the best rate ringo a season opener since 2016 in new jersey where sports

gaming was legalized in 2018, the state is already poised to overtake nevada as the biggest day for sports betting in the u.s. new jersey governor phil murphy joins me now for an interview. governor, how big a deal is sports betting as an industry in new jersey now >> it's good to be with you. it's a big deal. first of all, i hope you had the under on the game last night. >> i don't bet. >> it's a big deal since inception, i think the total back in new jersey, which is about 15 months, is $3.5 billion it's a game changer and not just for the sports betting itself but for the ancillary benefits, whether it's in our racetracks or casinos the other big piece as you mentioned, we're now past nevada for several months we want the industry to plant their flag here. we think whether it's regulation, technology expertise, talent, so not just the front end, but the whole package, we think new jersey is

ideally suited. >> we're going to speak with jed next hour who thinks sports betting will be legal within 48 states in five years that doesn't give you a lot of time. >> no. first of all, we've already made enormous progress in 15 months nevada had decades of head start on us. but secondly, new jersey's attres aren't going away our location is second to none we're the densest state in the nation and that matters here we've had legalized gambling for over 40 years. we've got great talent and all that adds up to i think and we think too being an ideal location for the industry. >> it might help this business grow, but in terms of the tax take, my understanding is every billion that's wagered, the state might get $5 million of revenue. that's just not going to move the needle. >> well, listen, it's probably a 25 to 5$50 million revenue item for the state. we'll take every penny of that it's the way it's taxed.

it's one of the rare parts of our state where the folks ask us why can't you put more tax we think that's the right rate again, the ancillary benefits, whether it's hotels, shows, racetracks, restaurants, is enormously important for us. ou're saying you wouldn't increase your take of that over time >> my guess is that it will grow with the book. i don't think we'll get any plans to raise the actual rate it will stay i think consistent and it's a reasonable level and again, we get a lot more than just the actual sports book in terms of the benefit to the state. >> i definitely see what you're saying on that front i want to ask you about something else that's spreading across the states right now. texas attorney general ken paxton on monday is expected to announce his investigation into google and the digital advertising market he's coordinating with 30 other

ags. is new jersey part of the effort to crack down on google and facebook >> i would defer on that one to the attorney general i'm sure if there's something so say there, he will say it. he's doing an extraordinary job. we're battling washington in particular day in and day out joining if not leading a lot of suits, but if there's any news there, i'll leave that to him if and when that becomes a appropriate. >> i'm also curious about the impact if you've seen one about tariffs and trade. obviously we have a big port here has that been hit by any kind of slow down? is it having any knock on effect in terms of the state's economy right now? >> so far, so good we just printed our second consecutive all time low unemployment rate. i'm also proud, you're getting me on a good week. we were just rated as having the number one public school system in new jersey in america, of any american state we're starting to see some troubling signs.

our economy is just under 10% manufacturing. that had been growing in the past couple years about 5% that looks like it's starting to flat line. as you mentioned, we've got one of the biggest ports in the united states. that's been up in the handle there for a couple of years in a row. that's now year to date down a little bit i think the volatility, anybody who's in business no matter what your persuasion is, you want stability. you want to know what the game plan is even if you don't agree with it. you want to know where the economy is headed, what the rules are, what the parameters are and the volatility around this whole trade and tariff question, the vol tatility itsef is damming, never mind the conceptual notion. >> soon we'll talk more about taxes and so much more thank you for joining me today. >> thanks, kelly. >> phil murphy, the governor of new jersey coming up, colleges and universities are feeling pressure from the ongoing trade

tiff between the u.s. and china. fewer chinese students are deinlling meaning big cles in revenue how one college had the foresight to protect itself with insurance next goes to waste. now, we've got away around that. looks good. we're on target. blockchain on the ibm cloud helps pinpoint a problem anywhere from farm to shelf. it's used by some of the biggest retailers everywhere. a nice lettuce. so more food ends up on your table, is that daddy's lettuce? yeah. and less food goes to waste. ♪ ♪ what do you look for i want free access to research. yep, td ameritrade's got that. free access to every platform. yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees.

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welcome back as trade tensions continue, fewer chinese students are enrolling many american universities and that could mean losing billions in revenue one college had the foresight o protect itself from this with an insurance policy >> there are 360,000 students from china study ing in the u.s spending about 13 billion a year illinois became so dependent on those students that it took out an insurance policy. the business school created a policy that will cover up to $60 million in losses. they bought it two years ago so long before the trade war, but with 20% of the students and more revenues coming from one country, they wanted a hedge >> this was really from my perspective, just good risk management practices we recognized we had substantial exposure to a single country >> it's unclear whether the

policy will be triggered this yore the number of chinese students at the university of illinois fell for the first time last year to just under 5800. the insurance pays out if revenues fall more than 18.5% so if they fall 20%, they give $12 million in payout. premium is about 424,000 a year and syndicated through lloyds of london other schools have looked into this, but given the trade war, it's become far too expensive to buy now. now the policy is three wreers so they can renew in 2020. let's hope they don't have to. >> it's fascinating. but we talked to purdue who said they specifically tried to make sure that the number of chinese students get to high so they wouldn't run into this problem so there's a couple of different strategies and the rest of the colleges are left holding the bag. >> they said number one, it's harder to get visas, but number two, they're not getting hired because companies think they're all spies, so it's put them in a

tough spot and we expect the numbers will come down this year >> wow great story. robert frank coming up, working in a professional kitchen usually means working nights and weekends with little to no flexibility. 'lta tthe ceo of an app that's working to change that. right after this

the tight job market mixed with constant shuffling of employees has create d a labor crisis in the restaurant industry the turnover rate in the restaurant sector is 82% my next guest is a form er chef and restaurant opener who recognized the need to fill positions quickly so he created an app for that to help fill eateries with workers. joining me now is the -- of paired how many people use this app >> we have over 100,000 restaurant professionals on our platform >> are they getting work within the same day, the same hour? >> yeah, they can get jobs within a couple of hours and some work out their schedules

for weeks and mobts. >> chef, dish washers, waiters, waitresses >> we cover everything from the back of the house like dish washing prep cooks and line cooks to bar backs and bartenders >> do you think this is going to be the way that people, i mean i would imagine the first priority is to find a job where you don't have to have a different job every day. what kind of people are using this app and what kind of rest yaunts are looking for with these workers? >> yeah, i mean it's the entire industry we're solving huge you know number one problem r for the industry it's a $300 billion proble where restaurants can't find staff where they need it then on the other side, it's one in ten americans skilled professionals. people who their way up over time bake their bread, make their pastries we're giving them then tubt to do that by giving them a platform for their resume where they're earning $20 an hour.

some are earning $80,000 a year, which is three times the national average >> it could help with professional development so uber and have this issue where this legislation this california might their trooifrs are employees. would your company be at risk of something like that? these workers, they're employees of pared >> no, there's on demand companies out there that are paying their workers less and less over time because they're keeling with unskill ee eed lab work that anyone can do. our industry different we're filled with skilled crafts people and pared's business is is to allow them to make more money over time. >> and you make money by charging the restaurants >> yes >> so not the worker not coming out of the work rer's paychecks. >> no, it's different than what

you see on other apps. the workers on our platform are getting paid way more than average and what they see is what they get and our restaurants are paying, are willing to pay more because we're show iing them our workers are skilled who can help they can run better businesses and make their customers happier >> thanks so much. cofounder and ceo of pared that does it for the exchange. puerto ri "power lunch" begins now >> thank you very much and we'll see you back here at "power lunch" in a moment welcome, i'm tyler here's what's new at 2:00 on "power lunch." stocks finishing the week strong wiping out all of august's losses if you can believe it but is the move a real breakout or just a fake out plus, wework is is it working new details of why the company's dream of a mega ipo might be going up in smoke and later, one bike company stuck in tariff limbo. the ceo will be b here to explain why the trade war is is hurting his business so much