their model, if you will, for lack of a better word. >> it's a good question. i don't know the answer to that. what -- but what has happened and what they've -- what they've caused to happen is that all of these other growth investors are had go raise bigger funds so they can, you know, keep pace and hunt down soft bank or move earlier up the food chain. and that's happened as well. >> it's been great having you. >> thanks a lot. >> that does it for us today, the exchange begins right now. ♪ thank you, scott hi, everybody. here's what's ahead of us. google under fire. ags of almost every state are set to announce an antitrust investigation into that tech giant in the next hour we'll talk about what they're alleging, how google will respond and whether a breakup could be on the horizon now. plus, we'll double your value. that's what one investor is telling at&t as they take a huge stake. what's on the table.

that's ahead and big tobacco bet big on vaping and now that may go up in smoke. what's their next move that's all coming up today, but we begin with the markets and don chu is here with those numbers. >> it hasn't been a massive, massive selloff but it's a notable reversal in the markets. right now we're still in the green for the dow, just up 2,200 points but for more people for the s&p, at one point it was up eight points we were down 9 points at low 29.770 the mark. there has been a reversal in certain parts of the market. one place many traders are focused on is the recent outperformance in technology, specifically software related stocks and how they've underperformed to date if the this is a two dayish chart that the i share,icer igv, it's off 2% right now right out of the gate it's been

slowing momentum for this etf stock wear stocks. and then we'll end on the stock of the day, it's at&t with the recent run-up this year-to-date period, it is the biggest telecommunications media, broadband, wireless stock in america topping verizon, those shares up 3%, well off their highs still with an activist investor and elliot there. over the past 20 years, this stock at one point was $59 per share. we are well off that level right now, $37.20. we'll see if this activist situation gets those shares moving back to the dot-com era. >> did you say a two-dayish chart? >> did i it was kind of intraday to what's happening now welcome to the exchange everyone i'm kelly evans. crude is seeing a bump after the saudi minister said there wouldn't be any radical things that to the policy the ten-year yield is up

it fell just last week the banks are getting a nice boost on the move. speaking of yields, companies sold nearly $150 billion in bonds last week and that's the highest weekly volume on record. let's drill down on these markets some more. we have steve here at the nysa a lot of trade talk driving this comeback if we can hang on to it today. >> that's exactly right, kelly we're losing steam here but we're still on record high watch. it is interesting to see that companies that make a large portion of their revenue outside of the u.s. have played a big role in the market's comeback in september. on average up 5% compared to companies that generate most of their sales in the u.s., which are up only 2% easing trade tensions it's down about .7 have helped multinationals outperform names like caterpillar, schlumberger,

pvh, nvidia are up they've had a strong start to the month, but still far off their respective highs but certainly this international theme does exist as we've seen this rally take hold back to you. >> we'll see if it can stay there. thanks very, very much but let's get on to the major business story of the day now. attorneys general of nearly every u.s. state are getting ready to unfail u veil an investigation into google. that announcement is less than an hour away and will take place in front of supreme court. pretty heavy on the symbolism. elan moi is there with what we can expect from this elan. >> we are in count down mode so when they will announce their investigation into google and have been able to confirm that almost every single state in the country will be participating in this effort. clearly it's bipartisan and the state that's leading the charge is texas, attorney general ken paxton is a republican and he has said that the case will

really focus on three central questions. one, are companies stifling competition? are they restricting access and are they harming consumers now, we don't expect all of the state ags to show up here in front of the supreme court but i can tell you that there is one notable state this is sitting this out entirely, and that is california of course home to google's headquarters that was according to a source familiar with the case but the state ag's office sends me a statement saying they remain deeply concerned and committed to fighting anticompetitive behavior that. does raise the question, will there be more toeven after today's investigation is announced. >> super interesting stay right there does this mean that big tech is going the way of big tobacco for more on that let me bring in a cnbc contributor and also joining us at the supreme court is tony rahm he's tech policy reporter at the "washington post."

antonio, is big tobacco and what happened there a model for big tech >> it could potentially be a model for big tech. i think it's important to remember that state ags are incredibly powerful. they haven't just the power to bri bring antitrust actions as we've seen in the past, but they can do consumer protection things as well there are a number of examples in recent years whether it's tobacco or mortgage lending practices or the opioid conversation where the ags have acted particularly in cases where the feds have been slow. it's certainly something to watch going forward. >> ylan what are we talking about in terms of the remedies they're seeking? are they financial to change business practice something what are you hearing >> we don't know yet one thing iwe're hoping to hear is how are they structure the argument they expect online advertising to to be a focus

google requested to turn over documents related to its advertising business that appears to be one area of focus. i would also point out that 41 state ags sent a comment letter to the ftc earlier this summer saying we need to rethink antitrust entirely, not just focusing on price, but also on privacy and data and how that relates to the antitrust argument you could see a broader rethinking of how we even approach antitrust from the states. >> and, jimmy, what does it tell you that texas is leading this charge and california's sitting out? >> well, google is obviously located in florida texas less concerned you've heard, i think, in texas a rather diffuse argument being made it's not just about privacy. they're also very worried about tech bias, which is one of the problems here. ha is the theory of harm that these attorneys general are going to be talking about? is it privacy? is it data privacy is it bias

consumer welfare if it's that these are bad for consumers they're going to have a difficult case which is why there has not been action at the federal level is all the sides cannot figure out -- we know google's doing something wrong, we can't figure out exactly what it is. >> the fascinating thing about this, if we compare it to big tobacco and there were millions of deaths and illnesses as a ruxt their products. if you compare it to the financial crisis and anybody who had a job in this country in this particular case, now here comes this big announcement against google and, you know, the harm is what exactly of course people are concerned about their privacy, but this feels very, very different from those precedents. >> that's exactly right. you know, comparing it to opioids or big tobacco, most people like google google's like one of the most popular brands among millennials and generation "z" and pretty much everybody else, which is one reason they want to get rid of -- a lot of the anti-google

folks want to get rid of the consumer welfare standard because it's very difficult to sue them under that standard. >> it's a little ironic. >> tony, what do you think the possible remedies could be here? >> it depends on what the harm is they have so to figure out what they're going to go after first. sometimes we talk about like break up big tech companies. but the resolution here could be much more than that. it could be a settlement that forces a company like going to change its business practices. and it could have lasting implications for more than just google remember, it's not just google that's being investigated. wee got an announcement last week that the new york attorney general is leading a bipartisan probe into facebook. so it certainly seems that there are air series series of practg addressed and it seems like antitrust is one of the tools that they plan to pool to fix those things. >> it's going to be tougher to foe for investors to know what to do until we know what they're going to lay out here. in the meantime, thanks very

much appreciate it. >> thank you by the way, louisiana attorney general jeff landry will be on the closing bell today. 4:00 p.m. eastern time, don't miss that. we'll maybe get more detail from him about what could happen here. turning back to the markets, the averages are within striking distance, dow and s&p only 2% away, the nasdaq 3%. is it too late to get in on the rally? can't believe we're asking this question again we have bill smooed here so, bill, as difficult a market this has been, by the ay, what's happening with wee work is really interesting, what it tells you is happening in the private versus public markets. we're close to the all-time highs. where can people go to find value? >> first off, the key thing about we work and the show you guys had on prior with shacter

was fantastic. we're dumping a lot of companies into the pool and that dilutes the value of the existing ones the money to go into more growth stocks has to come out of the portfolio managers to buy growth stocks they're diluting those and the number of value stocks is disappearing the thing to understand at any time, whether markets are at highs or lows is stick to your discipline whatever your discipline is, stick to it. so right now ironically there's as good as bargains in value as you ever see because of how much value's been neglected let's use the oil price that you mentioned in earlier comments. price of oil is about $58 in the united states right now. so let's go backwards. chevron offered to buy petroleum for $33 billion and got outbid by a company that paid 38 billion. so the other company now owns

them and you can get two companies for the price that chevron was going to phi buy one of them. >> so you'd by occidental and not worry about the share prices >> let's reverse this. you mentioned just a few minutes ago that major companies like apple bore rod $150 billion last week. >> yes. >> it's smart to borrow money right now at record-low interest rates. it's smart to borrow that money and occi was smart to borrow that money to buy ana darko. but it's because they've been running around crying like a kid that got shamed because warren buffett got a better price than him and he's been talking the stock down and saying how terrible these people are all apple and all these other companies borrowing money are saying they were geniuses do that. >> so you're going with occi and your picks, by the way, that's one in the oil patch which is unpopular right now you have another one in the

financials, wells fargo. talk babout unpopular. what makes you think we're not going to face a european bank zombie for people investing in wells right now? >> see, the difference between wells fargo and the zombie-like banks in europe is there's 80 plus million millennials that have only been deposit customers and core logic says that 25% of them want to buy a house in the next year. so they go from being nothing but depositors to being people that are borrowing money to buy houses and cars and use credit cards. so the best potential future customers of wells fargo are just kicking into gear and wells fargo and bank america and jp morgan have the best mobile technology because they could afford to spend the money to spread it across. >> i won't tell you my story about wells turning me down when i asked them for a mortgage a few years ago. but wells, occi and lenoir

we know how you feel about the home buyers you just mentioned good to get your thoughts. >> thank you here's what else is coming up on the exchange ♪ >> ahead, one activist investor tells at&t that it can make its stock soar if it takes a number of steps what are they and should you follow them into the stock the retail investor. global marketplace, investing, bitcoin, brexit and more we'll speak with sec chairman jay clayton. and tobacco's plan "c. smoking is done and vaping is under fire so what are the companies going to bet on next ♪ >> this is the exchange on cnbc.

. welcome back to the exchange at&t searching as much as 10% today after the management announced a $3.2 billion stake in the telecom giant they're saying the stock could be worth $60 a share it's trading ton 37 with a 2% gain this afternoon. the hedge fund is saying for at&t the mergers and operations are responsible for the underperformance of its stock, it has world class assets trading at historic zis count

and it could improve management and operational performance. here are julia boorstin and leslie picker. leslie, this is a very big move by elliot, which is one of the biggest activists out there. >> this has got to be one of the top companies ever targeted by an activist. elliot say company that is -- or is a hedge fund that's known for getting its way when it comes to actvision vix. so oftentimes with this kind of a move, you will see the ceo want to sell the things quickly with a few know thealnotably nos elliot is extremely active in the activist world, but this is the largest company they have gone after it will be interesting to see how the playbook changes if it does for at&t versus some of the other high-profile situations they've been in.

>> yulijulia, we know what ellit thinks it can do here, but how did at&t allow itself to become vulnerable to this move do you think? >> i think it's interesting if you look at it in the context of two factors. one are the sectorwide issues that have impacted their business and the trouble that at&t has gotten itself into by pushing further into this area if you look at the pay tv business, they made this huge investment in directv. in 2014 they moved into this pay tv business, bought directv just as we were seeing the precipitous decline in pay tv subscriptions. so just in the second quarter of this year at&t lost about 800,000 pay tv subscribers so you see the issues in that business, which are sectorwide that they're particularly exposed. even if you look over at their mobile phone business, even though at&t is certainly well positioned there to compete, we are seeing price wars when it comes to mobile phone carriers

and at the same tie they have to invest to create this 5g network. i haven't even mentioned what's going on with warner media right now. >> one of the analysts was on saying he's not sure it makes sense for these three assets, the separate assets, the phone business, the tv business, the media business to even be combined elliott's not going quite that far. are they calling for any kind of breakup or divestiture here? >> they're calling for a review of the various assets and see how they fit together and whether divestitures would be warranted. a byproduct of this that they've undergone over the last few years say massive debt load. it's a very levered company. it's been a huge overhang for the stock over the past few years as a result. and so elliott's looking at that and saying what could be a way to maybe deploy our capital a little bit better? is it divestitures >> is it buybacks? >> is it raising the dividend? all of these things that

shareholders want to see challenge of course is paying down the debt in the process and freeing up some cash do those things. >> julia, but also you can't be ceo and have the operational managerial, the acc visioquisitl those things be questioned and not peal feel lifeel like you'r crosshairs. >> it snt absolutely is in the crosshairs they've had a lot of changes with the warner media division and the ceo is leaving all of their different divisions need investment right now. they need to invest in 5g and new content for their hbo max service and they need to invest to try to figure out how to hold on to those directv subscribers or create skinny bundles a lot of demand for investment while they have that massive debt load. >> thank you both very much. appreciate it. still ahead, sec chairman

jay clayton will join us live. we'll ask him what he thinks about the roundtable saying shareholder round tables aren't the rage these days. with the fda cracking down, e-cigarettesou bome cldeca problem. what's plan "c" for big tobacco? that's ahead were in jeopardy.d business i called reputation defender. vo: take control of your online reputation. get your free reputation report card at reputationdefender.com. find out your online reputation today and let the experts help you repair it. woman: they were able to restore my good name. vo: visit reputationdefender.com or call 1-877-866-8555.

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restructuring announcement they plan to consolidate sales the executive team will be streamlined and they're being awarded with a 6.5 gain in the stocks today and we have a key lung cancer treatment, the treatment showed to reduce tumor size in just over half of patients with advanced lung cancer the shares are down nearly 3%. las vegas sands is popping deutsche bank upgrading a stock. bear sentiment around the cow is creating an attractive entry point and lbl shares are up a little over 4% hello, sioux. >> sue. >> gerald nadler announcing that the trump impeachment procedure vote will likely take place thursday that vote is designed to authorize procedures for launching preemt proceedings against the president. the four crew members trapped inside a cargo size ship off the

coast of georgia are alive coast guard rescuers say they drilled a hole through the overturned ship's hull and remaining 20 members have already been rude. fiat chrysler is adding ram pickup trucks in the u.s. to a series of recalls to fix tailgates that can open unexpectedly the expansion covers ram pickups from 2013 to 2018 with power locking tailgates. and researchers from rutgers university studied 40 years of pregnancy data from more than 151 million american women the rate of high blood pressure in those who were at least 35 has increased by more than 75% scientists believe the older age in which women are having children may be playing a role in that increase you are up to date, that's the news update this hour. i'll send back to you. >> sue, thanks very much here's what else is coming up on the exchange ahead, we work's valuation

doesn't seem to be working for wall street anymore. amazon goes on a hiring spree. popeye's restaurant is telling a us a lot about the state of market. and, impossible foods, big china push it's all coming up on the exchange

welcome back let's catch you up on a couple stories that should be on your radar today. it's rapid fire to break down the headlines with dominic chu, courtney reagan and we've been talking a lot of tennis, but it's time to move on let's talk some wework instead the parent company is having evaluation struggles again "the wall street journal" reporting that the new valuation could fall below $20 billion that's well less than half of the $47 billion valuation it received earlier this year sparking all kinds of discussion just last hour dick was quite tough on wework saying basically they're giving all of tech a bad name right now while you have ags about to go on the supreme court steps coming off technologies they're making themselves the postor child giving us all a bad name. >> he talked at the top of the show that a lot of enterprise

software companies are underperforming the market today. that's been the momentum trade one of the things that's also interesting is one of the etf's, the ticker ipo is down about 3% the past month from a 50 two-week high. >> yeah. >> no doubt. but the overall market has been up 2% in the s&p since then. so are you starting to see signs of this kind of rollover effect and is now a good time to go public yes, the stock market is within 2% of record highs but some of the momentum has come out of the parts of the marquette you wa market is high. >> there are so many bad things in this company from the losses, from the governance, from the amount of debt that the founders taken out $700 million -- >> business model questions. >> and there's margin calls and so many things my question now is what is the systemic risk from a company that is the largest commercial renter in new york, one of the largest --

>> is that true they're the largest commercial renter in new york. >> 5 1/2 million square feast space. those are long-term leases what happens to those buildings where they make up more than half of the space and a lot of these big buildings in man hat pent what happens to those investors, those landlords that are exposed to these ten, 20-year leases whofs future -- >> the idea is, yes, they are going raise a bunch of cash which they need. but it's not as if they need it tomorrow there's -- she was saying there's this -- >> 2 1/2 billion dollars loss, they're going to need it sbloon they're goi soon >> they are, but the idea is soft bank and what role they play here. they've stepped up with so many funding before and a lot of that depends on what happens here. >> that's another systemic part that i'm starting to wonder what are the secondary pieces that fall if wework doesn't pan out and raise the cash.

>> here's another sign of how tight labor market is, amazon looking to hire about 30,000 workers across the country next week the company's going to plan to hold job fairs in six locations. we're talking boston, nashville, dallas, where it thinks it can find the strongest talent. the positions are full time with benefits everything from software engineers to warehouse workers and skuft hcustomer service. >> these are are the full-time positions. they could up their labor staff by about 5% in the is unusual do a full-scale hiring. but i guess you need a big volume to fill the positions, you need a lot of candidates to come through the door. i'm going to be interested to see how many software engineers would be sort of those jobs in these different cities, chicago is another one that we didn't mention, dallas too. >> if this is the case and the labor market is so tight, are they needing -- a company like amazon needs a publicity stunt -- >> that's marketing. >> where does it come -- >> make a big publicity play out

of it. >> i did the story last year that i feel like i could do again with hot holliday hiring where are all the workers, they say they're going to hire all these people but are they out there what ended up happening was there wasn't a single retailer that told me they couldn't find the people we wanted they all say they figured it out. maybe they're being underrepresented kohl's already started hiring in july for some of their holiday positions and then they started hiring some more in august so, i mean, people have already started for the seasonal but these are full-time big jobs. >> right the timing they're going to compete with that. >> what's rough about this is amazon has never been known for transparency with regard to some of its results or anything else. however, this would be an awesome time to see some of the hiring trends that they're noticing in this campaign. >> you think it would be a public service >> we speak so much about the job service, it shows that there are way more open jobs in america than people to fill them and nobody believes it

but these are skilled positions, not necessarily warehouse position where's you need engineer types or coding types or other skill-specific jobs and are those the ones that really don't have people that you can actually fill those? >> sure. i'm with you amazon -- >> tell us, disclose to america who shows up and what happens. meanwhile, we'll talk about some more strength, which is this time in the bond market we've heard all the stories about this popeye's chicken sandwich that was super hot but the parent company sold off nearly a billion dollars worth of junk bonds to investors whoere hungry for yield, it wasn't that much $750,000 worth of debt we're talking, just under 3.9%, which could be the lowest for junk bond, i'm sorry, high-yield maturing in eight yields or more since at least 2014. i mean, it's just perfectly emblematic of the demand for credit it's important for people to know when they're talking about what's happening with wall street and the stock market and the economy, we just talked about a macro indicator, here's

a credit market indicator that's flashing. >> here's the part that i struggle and other folks are struggling with is this dynamic about whether or not the credit market at that level is still an operate indicator for overall systemic risk in the marketplace. there's a school of thought that believes with european -- european governments and japanese governments keeping rates so loi lw that there's no alternative but to come to the u.s. markets for that are yield hike that will put demand for those bonds at the high end. >> that's what bill smead was talking about. >> every time we say there's no risk for them out there, it's because high-yield junk bond markets are healthy and held up pretty well over the past month. >> look in december when they totally shut down. >> we're not close to seeing that. >> it's more simple than that. people are not getting paid for the risk that they are taking. and when that last happened, which is in 2008 and 7, we know what the ending looks like the question is how long this goes on and who suffers and

where all that debt is right now. >> this has the dance while the music's playing feel to it. >> absolutely. >> where people say robert i have to because where else am i going to get 3.9%. >> that's right. then you ask them to do you know what you snon do you know what the risks are of what you own? and the assistance always later, i wish i had known. >> or i don't care right now. >> i wish i looked closer at the risks of what i owned. right now people are not looking or getting paid for the risks that they are taking. >> i definitely think if you have bonds in your portfolio, whatever that -- you have to find out is it a bond fund or you exposed to the underlying bond and what kind of -- these are questions if you never asked them before, ask them this week, just do yourself a favor, ask them this week. >> kelly's psas. >> we have a lot of psas today before we go, jp morgan have launched a tracker for president trump's tweets and they're calling. volfefe index. the goal is to quantity fight impact on the market by measuring rate volatility after his tweets they're saying that the market moving tweets by the president

have increased dramatically lately and so has rate volatility so they're connecting the dots between the two. i liked this nugget in analyzing all the president's tweet they found out a tweet during the 1:00 hour is 3 times as likely as any other time of day. >> there you do go >> i do wonder if the algorithms are getting smarter about picking up on some of the words and nuances because we talked a lot before about how the president can say things, we make market moves and it didn't come true but we still keep making these moves does it seems like they've gotten smarter >> moves haven't been as dramatic. >> but the yield on this. >> but what was interesting was the rate per sprkttivspective be they single out the tweets that centered on the fed and j. powell so those had a disproportion eight effect -- >> did they establish it was those tweets versus the trade tweets that were more impactful?

>> they went through a whole range of slicing and dicing the data and those things. but the idea is if you have a tweet-sensitive environment right now, will there be programmers or coders who end up writing alrims that are writing algorithms that are a little bit more sensitive. >> if they haven't been writing algorithms that account for the president's tweets, what have you been doing >> what's interesting is the financial tweets that dealt with federal reserve and the trade are the least liked or interesting among his page so no one really cares except for the market. >> yeah. >> except us nerds. >> right thank you all, appreciate it dom chu, courtney reagan and robert frank coming up next, the sec chairman will weigh in on everytnghi to brexit and maybe on these tweets. we're back in two.

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commission chair jay clayton delivering remarks at the economic club of new york today touching on global markets on financial regulation on so much more bob is there and joins us now with the chairman himself. bob. >> reporter: kelly, thanks very much and jay clayton joining us, the chairman of the sec at the hilton here in new york. you just gave a very interesting speech a big part was the ipo market. it's been a big year for the ipos, uber and lyft. but you've made it a thing in your administration it make it easier for companies to go public how can that be done while providing disclosure to the public what the companies are doing? >> you hit the nail on the head. are companies going public early in the lifecycle or very late after the growth phase has passed. >> there was a time when companies sought growth capital in our markets and they had an opportunity to participate in the growth phase today we don't see that as much. and we are working in many ways

to make our public capital markets more attractive to those growth stage companies jobs act there are was bipartisan act of congress, made it easier for companies to go public we're expanding the jobs act what i would say is the jobs act accommodations, they're smart ones congress thought about it and did a good job we're expanding those to more companies. we're looking at scaled disclosure basically looking to eliminate frictions without in any way reducing investor protection. >> are we going to see less intensive 10-kers. will the filings for the companies be less intense, less information in them? i'm trying to figure out what's the balance here >> if you have a fairly simple company, you should have a fairly simple 10-k and we want to make sure that people in thars, you know, multinational, you know, multi-line companies with different segments, they're going to have a complicated 10-k but for you're early stage company, you ought to be able to go public and talk to them the

same way you do investors. >> let's move on to the trading and the algorithm. every time the dow is down they say the machines are taking over it's people who write appthe algorithms does the sec have any concerns about how machine trading is being done are the rules being enforced is there any need to tient tghth rules? what's the sec doing about this? >> i think what viewers need to understand and sophisticated market investors understand this almost all trading today, for all practical purposes, all trading today is machine trading. it's done through an algorithm if you go to your broker and say i want a hundred shares of this or sell a hundred shares of that, it gets fed through an algorithm. now to give some comfort, we know that. our rules have been adjusted, we are continuing to look at them to make sure that trading today is as fair and transparent as it was when it was voice trading.

in some ways, look, trading's much more efficient today than was when it was all voice trading. investors benefit from that but, you know, like i always say to you, my job is to worry. i do want to make sure that our regulations today reflect the fact that we do have machines talking to each other. >> i want to bring in my colleague kelly evans. cell. >> i my question is about the business roundtable's recent proposal or shift to basically say we're going to emphasize stakeholder accountability and not just shareholder accountability for corporate america. it's gotten a ton of attention and i've seen criticism that by making that kind of move you're basically, you know, going from the accountable to shareholders to being accountable to frankly no one are you worried this is going to be bad for investors in the long run? >> let me say this i'm going to go back to what i did before i took this job and had the opportunity to be in a lot of board rooms in the board rooms of good

companies, those constituentsies were almost always front of mind because you couldn't deliver for your shareholders unless you were delivering for your customers and employees. the question about what the law should be around who what your duties are, that's a complicated question i'll just say that we've done very well leaving that to the states and not having the securities and exchange commission get involved in the fiduciary duties that's largely a delaware law issue. and i'm happy to stay in my lane on the law of this. >> let me ask you about bitcoin. i know i've asked you many times about this in the last couple of years, but it's of intense interest to the viewers. are we any further along on a bitcoin etf? i know you did a mem know a year and a half ago where you made it clear you were concerned about custody and the security of custody and you were very concerned about the fact that much of the pricing of bitcoin was done on foreign exchanges that had the potential to be easily manipulated

now you're realm here is abitcoin etf are we any closer? the people involved in the bitcoin businesses in any way come closer to satisfying your concerns >> the short answer is yes but there's -- there's work left to be done those were not trivial questions. how do we know that we can custody and have a hold of these crypto assets? that's a key question. and an even harder question given that they trade on largely unregulated exchanges is how can we be sure that those prices aren't subject to sigma nip pnim anybody pewlation. people needed to answer those questions before we felt comfortable that this was a good product. >> i just want to get in a buyback question interesting political question there's people on both sides of the political aisles weighed in saying there's too many buybacks out there. corporations are using them too excessively. they should be investing in the companies more does the sec have a position on

this is there any sign buybacks are being abused is there anything that the sec is looking at around this? >> we don't regulate whether companies do or do not to do buybacks what we raeg laegulate is if thy decide to do them are they doing it in a fairway? but whether a company does or does not to do a buyback, that's not for the sec to decide. >> we appreciate all area work and that you make yourself available and explain what your position is. it's very helpful for all of us. thanks for joining us and thanks for your speech today. >> thanks to you and thanks to kelly, bob, i appreciate it. >> we're at the hilton in new york kelly, back to now >> i'll add my thanks. bob there with jay clat on this afternoon. u.s. lobster dealers are boiling after tariffs after they heavily invested in the chinese

market contes c contessa is in maine tell us what's happening >> they've spent a lot of money to introduce their delicacy and deliciousness to the maine lobster but now they're feeling trapped by tariffs real impact of this trade war on to this industry coming up on the exchange from managing inventory... to detecting and preventing threats... to scaling up your production. giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence. we believe in education built for all people., - [woman] snhu was the best experience of my life. - [man] without snhu, i wouldn't be the leader i am today. - [woman] i graduated high school 19 years ago.

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getting hit with tariffs from china. we have a look at how canada is winning at their expense. >> reporter: total chinese tariffs on u.s. lobster, 35% that's really tough for the main lobster industry to swallow. after all they have spent so much time, energy and money trying to open the chinese market to main lobster it worked. business was booming until the trade war and then the chinese spot those tariffs on the lobster. their sales plummeted. first half of 2019 now the exports to china are off 60% distributors have laid off workers. they have cut back production hours. they feel like the losers in the trade war but the winners,

canada saw an opportunity and jumped in and boosted exports to china by 40% now, get this, u.s. exports to canada are up 130% >> exporting to canada is not the same value as exporting to china. you're shipping to another middle to ship to dhie thchina r process that it's an effect on u.s. jobs because the value is being realized in canada instead of the united states of america. >> reporter: canada's lobster export jumped 40% the first half of this year tonight a chinese delegation is meeting in halifax on trade to further expedite the lobster opportunities. what's more canada has signed a free trade agreement with the european union and the united states has not >> that's fascinating window into what's happening on the front lines.

thanks very much >> you're welcome. as the fda cracks down and more states are urging people to stop vaping all together, we're look at what this means for the tobacco companies that have made big bets on e-cigarettes do they have back up plan? the exchange will be right back. . really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum- just to help you improve your skills. boom! mad skills. education to take your trading to the next level. only with td ameritrade. doprevagen is the number oneild mempharmacist-recommendeding? memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life.

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welcome back the cdc confirming a fifth person has died from a mysterious lung disease linked to vaping. the agency is urging people to stop the use of all e cigarettes while it investigates. the fda is accusing juul of illegally advertising its product as a safer alternative to cigarettes. with regulatory pressure on vaping mounting and traditional smoking rates on the decline, what's big tobacco's next move frank, the vaping lung illnesses are really scary stuff >> certainly very concerning but big tobacco had a plan b, that was vaping it has a plan c and that is heated tobacco it's scheduled to happen later this month they may delay that.

it's not clear now >> they may delay the launch >> yes that's heating tobacco a very different situation the fda says that releases less toxic chemicals but falls short of their needs to say it's a modified risk product that means it's less dangerous. >> are you saying they had this product ready because they knew their might be some issues with vaping or is the timing just coincidentally worked out? >> it's designed to be marketed to a more mature customer. someone who taste wants the taste of a cigarette as opposed just the nicotine. kind of mirrors some of the flavors that you get from traditional cigarette. it's a very different product. it involves electronic device that you put almost a mini cigarette inside of it it's something old and new again. we know about chewing tobacco. >> you said you saw it in high school >> it's a product very similar it's called snus

it's chewing tobacco in a pouch. >> michael you have a $64 price target which is up from here do you agree with what frank is saying that they will look to heated tobacco if these issues are serious? >> the fda is in a tough position they recognize the opportunity vape can have to transfer smokers to alternative noncombustible products which public health england indicated are 95% less harmful but they recognize the risk of what's going on here which what appears to be black market products. it's not totally clear but there is a way that vapor category gets consumer skepticism it remains to be seen but if nicotine is addictive people will look for these back to gregre cigarettes or it's done outside the united states. that looks like it would be well

positioned here as well. >> i have to leave it there. thank you both very much >> that does it for the exchange thank you very much. welcome everybody to "power lunch. we begin this hour with breaking news on google more than 30 state attorneys general are starting an antitrust investigation into the parent company alphabet. there live look at the supreme kpor court. a press conference is set to begin shortly. >> reporter: the state state's attorneys general are podium >> there will be opening remarks followed by the other ags. we'll open it up for a brief time of question and answer. i'll stay around as the ags have to leave and try to help you the best i can ge