>> richard anderson. >> bryn. >> another energy call, viper energy, i have talked about it before, it has a 6% dividend, mineral rights, asset light, doesn't have direct exposure. >> devon energy. >> thanks for wamtching, the exchange starts now. thank you, scott hi, everybody, here's what's ahead of us oil is jumping and stocks are falling, causing the largest disruption to oil production in history. we're going to look at how high oil prices could go from here, and what the international response should look like. last week saw a big jump in mortgage rates, the largest in three years in fact, could that actually spur buying as people try to get in before the next move up. hsbc is saying to buy uber and lyft is there no tech backlash. that's ahead in rapid fire we begin with the markets, don

chu has that. >> currently down 155 points at the highs of the day, we were down by 46 points, down about 1. on the dow side of things, off half percent and about a half percent for the downside for the nasdaq as well. pretty even throughout the major indices. it's all being driven like you said, what's happening with oil prices if you take a look at bench, we're approaching and gaining strength throughout the session. we started off the day up about 20%. we have fallen to 8%, and back up to 14 remember, we are still down at this stage from the highs of last year, about 21% for those oil futures. we'll see if those gains can hold, and then these names, we don't talk about them very often. they are surging, widening petroleum, up 48% today. dan bury resources, 28%. range resources, 10%

sw energy, southwestern up 8%. the one thing these small and mid cap energy companies have in common, kelly, they are among the highest, with short interest a lot of people betting against these stocks we're watching those with a lot of small and mid cap cap exploration. >> don, thank you very much. welcome to the exchange, i'm kelly evans. let's drill down on today's market drop a little more. bob, it's not just the energy sector itself seeing major swings here. >> there's all sort of ripple effects, from the energy we're seeing a difficult response in companies where oil is a significant cost component, i'm talking about transportation stocks, so airline stocks and logistics companies like ch robinson are down, but there's also concern about the potential impact on global commerce in general. so global shippers, front line, for example, are all down a little bit weaker.

oil is not the only thing making waves in the market. china data overnight was much weaker than expected didn't get a lot of play china is closed today, the mainland industrial production, 17 year low. retail sales down much more than expected we're seeing copper and base medals, weaker after a terrific run last week. also luxury retailers, lvma, the biggest luxury retailer in the world also down in europe. kelly, back to you. >> bob, thanks very much bob pisani, appreciate it, sir. the price of oil soaring has knocked out 5.7 million barrels of daily oil production. our top five refineries produce half of that amount. the white house placing the blame on iran for these attacks. for more on the fallout, joining me are amy jaffey, on the

council of foreign relelations how much should people expect the price of oil to spike from here, do you think >> we have always had it go as high as 20%, and i think there's going to be more on the horizon. this is all going to turn now on what the response is either from saudi arabia and/or the u.s. to this attack. this turns into some kind of hot ore, we'll have a hell of a lot more higher price to go. if they somehow back down like the saudis have been doing for the past year or so, and suffered repeated drone attacks other types of attacks, then things will calm down quickly. >> what was your first reaction when you saw these brazen blatant attacks over the weekend, just as somebody who has been in the energy markets for so long, what did this immediately say to you >> that it's serious, that the iranians are definitely behind

it, and if you look at satellite imagery, even if you're just an amateur sort of looking at the pictures, there was an awful lot of precision to the strikes on the series of tanks aligned on the ground, almost hit each tank in the exact same spot that speaks to a high level of proficiency, a high level of being able to dial in exact coordinates like we are able to do, the u.s. is able to do with our longer range missiles. >> and amy, the white house has already said it sees iran as being responsible for these attacks. what steps do you think are likely in terms of next moves here >> well, you know, the white house faces a great challenge because is it iran, is it one of their proxies. they have proxies on multiple borders. we had a missile rocket attack on iraqi exxon facility in southern iraq as part of this sort of two-year exchange of missiles and droennes, so the question is it's not a one front

war. if it is iran, that's one front. they've got proxies in iraq, that's a second front. the war between yemen and saudi arabia, on the southern front. the question is, you know, can this administration actually close off this dangerous activity for oil facilities. we're not just talking about saudi arabia, we're talking about oil facilities in the uae and kuwait so we're talking about a major risk here. the facilities that were attacked in saudi arabia were chosen specifically because they're very hard to replace >> so amy, i wonder, too, as you're saying and as you have both laid out, you know, it's a pretty sophisticated attack that takes out a major part of global oilproduction. amy, is it your opinion, why would iranians, the iranians do this, at a time when the foreign minister was invited to the g7 summit, at a time when bolden apparently left the white house because the president was

thinking about sitting down with the iranians, if they wanted the diplomacy, they were close to it, what did they want to achieve here, as far as you can tell >> it is actually very shocking, so one thesis is by knocking out the oil production in other country, maybe they could isolate china or india or some weak player and break the coalition of people not buying their oil. another theory might be just that this is aexistential conflict that the iranians might have decided they're going to go for broke. they want to see governments fall in the arab gulf governments, see them as a mortal threat. so, you know, maybe it's just an escalation in what has been a simmering conflict. >> and john, finally, because we're talking about very different types of crude here, to amy's point, the kind of crude that's produced in saudi is the crude that largely goes to asia, china, and they would be hurt directly by that the crude we produce and we produce a lot of it now, it's

light, it's a different variation, does that mean we have less availability to fill that global gap or should we be able to jump into the void. >> we can't jump in and fill the void for a talk of energy depend -- dependence, it's energy interdependence. a lot of them have been actively experimenting with purchasing from the u.s. and incorporating it into their slates that has worked but there is no way. we don't have any spare capacity here our guys and gals pretty much produce, max out to pay their bills and keep going. >> they have been under pressure to produce less, because the returns have been bad. could they produce more quickly if they had to. >> it would take months. >> what is in the oil price as long as the shut down is perceived to last. >> i think right now there's an

hope or an expectation, the saudis can get this back online quickly. they claim 40% they will be able to sell out of storage, be able to do other things to mitigate the situation. some of the equipment is hard to replace rapidly, but i think for now, because it's so oversupplied, and as bob just highlighted about the chinese data, the demand growth continues to be crimped because of the slowing economic situation. we were oversupplied going into this the market is saying that we're not going to be facing shoring e or severe problems anytime soon. it's what happens next, the response is key. >> and we'll be watching it very closely. thank you both, john killdauf, amy jaffe. there are markets at all time highs. let me bring in bryce dody, and

you both have thoughts on the impact of this oil price spike here bryce, you're saying that people are under estimating its significance, right? >> i think they are. i think they're slugging it off and especially when you see how volatile the market was reacting to the trade tensions, it seems like it should be having a little more of an impact i'm surprised treasury yields aren't down more because i'm worried about what you were just talking, the retaliatory attack, i mean, if saudi decides to knock out, you know, bomb some of iran's oil fields, there's going to be a further decline in yields, and i don't think that's really being factored in right now. >> we just had a big backup in yields, albeit, we're still way down from prior levels what is the impact as far as you know concerned on the u.s. economy and the fed's decision tomorrow. >> so on the u.s. economy, i think it's fair to say that when oil spikes we should listen. the last five recessions were

presoo preceded by oil spikes it's really interesting that this is a reminder of having why having global coordination matters. when we have trade wars and currency wars, and this happens, the tables have churned and china cares more about this than the u.s. this will be interesting to see how it plays out when it comes to negotiation this is more leverage for the u.s. than to china and is that stark reminder, we should work on certain things together because it affects everybody. >> that's a fascinating point, thousand do you think it will affect the trade dispute between the u.s. and china if at all. >> it helps the u.s. hand. china was already struggling with doling with the trade wars. exports matter more to them. oil matters more to the u.s. now, so i think it places a little more leverage on the u.s., and the fed, it gives more cover if they are going to lower interest rates because now they could point to another geopolitical environment, another wrinkle. >> ironically, bryce, this is giving them some inflation,

which they seem to want, maybe in a short-lived way how do you expect this to impact the fed's decision this week >> well, this was tied to the strong cpi number and signs of inflation, and the good economic data that came out better than people expected. and while i still think the fed is clearly going to cut rates, i don't think they will be as dovish as the stock market wants them to be they won't say all the trade tensions and now this further risk with oil is enough to justify that we're going to just keep cutting rates at every single meeting i think the stock market is going to be disappointed by that in fact, any good economic news that comes out after wednesday, the stock market will feel is actually bad news because it will take the pressure off the fed to cut rates so the domestic economy is great, the rest of the world is kind of a mess, and the fed is trying to walk this tight rope i don't think they can keep everyone happy. >> you also note that the attack

on the saudi oil facilities will kill the prospect of their aramco ipos, that is right >> right that's salt in the wound here oil is their crown jewel of what they have, and 50% of the production is knocked out. i mean, they need to make a very big response, a strong response. this is the regime that jails people that say things they don't like of their own citizens. what are they going to do to someone who took out half of their production, and killed the aramco ipo it's a poke in the eye to say the least. i think the retaliation that they need to do in order to make a statement so this doesn't happen again is going to be bigger than what people are thinking. >> we'll see gentlemen, thank you, appreciate it bryce doty, and andre garcia-amaya. ahead, banks appear to be

warming up to mortgage bonds, the ones that got them in trouble a decade ago why and what does it mean for the housing industry. and the first therapy that may help cure peanut allergies is headed to the fda we'll talk to the ceo of immune the therapeutics about the breakthrough. and great news for apple in china, when it comes to the new iphone 11. i get it all the time. this is "the exchange" on cnbc -- ever since i started renting from national. because national lets me lose the wait at the counter... ...and choose any car in the aisle. and i don't wait when i return, thanks to drop & go. at national, i can lose the wait...and keep it off. looking good, patrick. i know. (vo) go national. go like a pro.

welcome back to the exchange, mortgage rates are coming off their biggest climb in three years the average 30 year fixed rate jumped by a quarter in the past week could the sudden spike help the housing market i'm joined by doug duncan, chief economist at fannie mae. >> low rates and they dropped so quickly over the last six months or so or a year, have helped the finance market but not done a ton for the housing market overall. could this cause people i better jump in now before rates keep climbing. >> you're right to divide it between refinancing and purchasing refinance is an execution of an option on interest rate differentials. you can do that without moving your family. it's a bigger issue to buy a house because then you're going to move your family and your household, so that action tends to be slower if you were at the margin of

making that decision, it's a good chance to jump now. so people who were -- who had gone through the process of finding a house, finding a mortgage that they like, a lot of them will have locked in an interest rate and jumped. >> so what do you see happening with the market as we get into the fall, because anecdotally, there's a lot of talk about inventory coming on the market, maybe a little bit of a delay, it wasn't that great of a spring, could be stronger now. you see that or no >> we don't actually see a lot of pickup in the purchase side of the equation. the problem is the same problem it has been for the last three or four years, which is lack of supply >> still, wow. >> at the entry level, if you look within a market at how fast prices are changing at the high, middle and low levels, in every market you're looking at they're changing fastest at the low level relative to the high, because it's the entry level buyer who buys there. >> it's the millennials. >> what happens to refinancing now. i mean, that, you know, there

was a major wave a couple of years ago, what do you think happens with now this back up in rates? >> we have seen a big jump, because, remember at the beginning of the year, rates were 100 basis points higher than they are now. so there's still an option for a lot of folks to refinance. so we would expect to see that work through the process one of the things you'll notice is that the spread between the ten-year treasury and the mortgage rate on the street has gotten wider recently. part of that is because nobody expected this extra wave of refinancing so they're trying to hire people back if you don't have enough volume, enough people to do the business, there's no point in lowering rates, you couldn't do it anyway the spread is managing that capacity. >> people could get a better rate on their refinancing if there were more people working in the industry to make that happen >> that's right. >> that's pretty shocking. >> part of the spread is the fact that people are prepaying on their existing morning which raises the risk premium. >> investors don't like that.

>> speaking of what's happening in the mortgage market, we're seeing private activity in mortgage backed securities, what does that tell you about demand overall. >> there's been a pick up in that space there's some experimentation and learning taking place in that space. it's nowhere near where it was back in the boom, bust time period in fact, a lot of it is jumbo loans, loans that are bigger than loans that can be guaranteed by fanny or freddie, so they're high qualy, they can run the loans through our underwriting and qualify with everything except for the loan amount, which we can't do. then they'll pair that with loans that we might be able to do and issue a security. that's a pretty a-rated security. >> is it good for the u.s. housing market for there to be this kind of activity, which we still associate with the financial crisis >> i think as long as the risks are controlled and there's oversight of how much risk is being taken, part of the reason that market has not grown a lot

is the standardization has not really come through that marketplace, and the regulatory oversight is different in that space than in the fanny freddie space. doug, thank you so much. doug duncan is the chief economist at fannie mae. >> tech backlash, from smart homes tor homes to smartphones. plus all week we're taking closer look at the vaping epidemic, one man's story of using e-cigarettes the way they were intended as more and more states are moving to ban them. that's all ahead. and cnbc delivering alpha investor summit is back thursday, september 19th, some of the most influential money managers and political figures will be there. go to delivering alpha.com to register "the exchange " is bac

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seeing the biggest games and the opioid stocks are on the movr p it's filing for bankruptcy all dealing with their own opioid litigation. we should note that mallenkrot in the red today has a $250 million market cap. sue herera hi, sue. >> here's what's happening at this hour, u.s. health secretary alex azar has called aon the tanzania government to release the lab results of a woman who died of ebola. >> we are concerned about the lack of transparency regarding the initial death of individual. and we are calling on the tanzania government to be transparent and make available laboratory results and information regarding the death of that individual. >> the leaders of russia, iran, and turkey meeting in the

turkish capital of ankara, hundreds of thousands of syrians have moved towards turkey's border to flee syrian air strikes. back here at home, pittsburgh steelers, quarterback ben roethlisberger will undergo surgery on his right elbow and be placed on injured reserve he's out for the season. he injured his arm late in the second quarter of the 28-26 loss to seattle you are up to date kelly, back to you. >> sue, thank you very much. sue herera. here's what else is coming up today on "the exchange". ahead, more bad economic news out of china. does it mean that our policies are working? one wall street firm says it's time to buy uber and lyft. we complain and complain, but is there really a tech backlash, and some good news for apple and

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on a couple of stories that should be on your radar today. it's rapid fire, and here with their takes on the headlines,

contessa brewer, bill griffith and seema mody great to have you on board evidence that china's economy is slowing down, industrial production growth hitting a 17 1/2 year low overnight as the index for the u.s. reports that august shipping data fell year on year for the 9th straight month. are these dots connected, it seems like they are screaming yeah, china slow down is crimping the u.s. >> the data is showing that effect, and what's interesting is unlike here in the u.s. where we're seeing a divergence in the data, in china it's the opposite, you're seeing the softness in industrial production and manufacturing now start to bleed through to the consumer and that's why we did see that slow down in chinese retail sales that's certainly going to be a concern as earnings season kicks off in another two weeks where companies like nike and starbucks will likely be in focus to see how strong is the chinese consumer despite the data saying things aren't gl th - going that well. >> it seems like the trade war

is having a definitely impact. >> absolutely, and this unique hybrid they have going of communist government with capitalist economy, one thing that the centralized government cannot control is the consumer. >> they try. they have other ways they can surveil them, they can track them >> so do we, from that standpoint, but they can't do away with the business cycle and they're just suffering from that, the large numbers kicking in, you know, all of those things going on right now, and yes, they are definitely being hit by the tariffs in this trade war. >> and i think you can look at this sector too. i'm new. you know what i think, i think when you look at casinos, which i follow closely, factory owners are the ones that are the vip gamblers, so when you see a stlslow down and industrial output, who does it hurt, the guy that owns the factory, and that's why there's some consternation about why that's driving slowness and vip growth if you look at real estate in

new york, if you have luxury apartments sitting on the market and not selling is it because our foreign buyers have evaporated if you look at tourism, and i know you're following this as well the chinese are not coming to america the way they were for the previous decade. and it hurts a lot of people. >> and by the way, we talk a lot about ghost towns that china has built over the last decade, new york real estate is starting to be a ghost town of its own great take out in the times over the weekend. let's talk about uber and lyft, rising after hsbc upgraded the stocks to a buy. they're saying the companies are making a move toward profitable growth, and regulatory risks should be priced in. you can see uber up 3 1/2% wework, another company with a long anticipated ipo getting support from a soft bank plan to buy $750 million worth of shares you don't want to say they're propping up the ipo but the news flow hasn't been that great.

>> they own $10 billion of the private offering to begin with they're already very very deep in this thing. if they want the ipo to come off, they have to pony up more money. they have to put something together. >> leslie made the point, uber is probably glad they made it before uber and lyft, as opposed to after. they have had enough of a struggle as it is. >> speaking to one friend who knows very well, and i asked if this will change soft bank's investment style, perhaps, become a bit more conservative, given the underperformance of uber and also the repricing of wework's valuation he said absolutely not >> my guess would be fat chance. >> if you double down and look at his history, this is a man who was almost bankrupt and took a big bet on yahoo and alibaba he's going to try to make sure it's successful. >> if he wants to be the cowboy, that is great. it's been amazing to watch everything he's pulled off i wonder about the impact on silicon valley all of the valuations, driven by his vision, pun intended are

having ripple effects where what they're able to come out with in public markets is way different. >> don't forget, goldman sachs put out that report last week, the analysis that shows it's not necessarily whether you have near term profitability that gauges the success of these companies, it's what their steals do over the first three years, and all three of these companies are showing significant year over year sales growth >> that's the question is if they can keep that going, that goes back to the upgrade this morning, at some point, does it all get priced in, and people are reminds of why they like these companies in the first place. >> i don't know why you can price it if you don't know what the regulations are going to be. just begun the process. >> speaking of regulation, a new op-ed in the "new york times" says the backlash against big tech has been greatly exaggerated. it says despite the threat of regulation, fines being imposed a more critical press and users threatening to quit all the time big tech and their products have never been more popular.

>> who's pos sittiitting a back. >> there is a backlash emotionally. sunday morning, 9:00 you get your report card of what your usage was the previous week. mine was down 40%, and i cheered. >> because of your screen time on your phone. >> because you're actively trying to stay off your phone. >> his wife has set limits. >> i hate myself for spending as much time on the screen as i do, and right now it's about 3 1/2 hours a day, which i find abhorrent, but i am watching old movies in some cases in the way we have the same relationship with food, you know, you go to the cafeteria, and see something, you walk out with a really nice, you know, meal, and you say, oh, man, that's too much, i couldn't eat all of that. we have the love hate relationship with food and technology >> it's become essential.

>> and we hate it's essential now. >> it's must have. the tech problems aren't perfect, some of them spy us, but still we use them. >> when i can't pry the iphone out of my grandmother's hands, there's no tech backlash this is a made up premise to write an op-ed about. >> what it's about is regulation the antitrust law currently has to show consumer harm. usually it comes down to price, monopolies, they raise the price, bad for the consumer. if they cannot demonstrate that there is consumer harm in this case, they are literally going to have to write the antitrust law to go after the companies in a different way. >> that's smart. >> and i think that's what it comes down to. that's why it matters how much screen time. >> get it out of my hands, would you. >> by the way, i'm still under two hours, but it's creeping. >> now that you have come back to social media, that baby is going up >> way up. >> thank you, guys >> contessa brewer, bill griffeth and seema mody. finally there's a whole other story.

new data authorized apple reseller says 2/3 of chinese preorders were for the cheaper can iphone 11. the success of the phone in china extremely important to apple. check out these numbers in the second quarter of 2019, shipments dropped 14% year on year, and apple's market share fell from where they were, 6.4% to 5.8%, so is it still good that, you know, hey, there's healthy demand for this new product or we needed this to be strong demand for the most expensive product. >> you know, apple is breaking it down in a way that makes it seem affordable if you're willing to trade in your new phone, you can get it starting 399. the wait times for the 64 gig and 128 gig are stretching to october. who has not learned by this point, 64 gigs with an awesome camera that takes up so much camera, 64 gigs is not enough. >> doesn't the cloud with the

photos help you kind of get around a lot of that. >> have you heard of the cloud how about your grandmother, does she have 64 gigs >> going back to what see mama s saying at the top, china is from an domestic to a consumer one, and the anecdotes about the phone speak to that. >> it goes to show how pricing is very fortunate. if you bring the price down, especially for a consumer in a lot of emerging markets which tend to be a bit more price conscious, it certainly can work, and this is why apple has failed in some of the other emerging markets in the philippines and india, competitors that offer similar devices at a much more affordable price point. >> this is the new apple to be price conscious, you get them in the door, and they become part of the apple ecosystem and they get into the services at that point. >> the margins on the hardware are going to be one thing, but if they can be made up for on

the services side, then you've found success here, a good business model. >> with that kind of market share, they have tough sledding to grow that >> for sure. but they're finding good high demand at lower prices, what a surprise. >> what a shock. >> and now we're done. thank you all. >> you sure? nothing else >> seema mody, bill griffeth, more than 17% last week as the peanut allergy therapy gets recommended for fda approval, we're going to talk to the ceo, dr. jayson dallas, next. in the . and our technology powers markets from indonesia to chile. great markets are built on a foundation of trust and integrity, forged through leading edge technology and a smart regulatory framework. as technology advances, regulation must keep pace to allow the markets to evolve. today we see an opportunity to modernize regulation,

to make markets more accessible to investors and entrepreneurs of all sizes. from the graduate buying her first stock, to an institution investing in thousands. the markets belong to everyone and stand as a symbol of economic advancement, social progress and limitless opportunity. that's the tomorrow that we envision and to get there, we'll have to rewrite it today.

welcome back an fda advisory panel has given a green light to the first proven peanut allergy program, for more on what this means for the company and the pharmaceutical industry overall, let's bring in meg terrell the stis lower

>> it is the outside adviser voted on friday that the efficacy, and data were enough to support approval the regulator is set to decide on whether to approve by the end of january, and though the vote was positive, the committee did focus on side effects associated with the treatment it's made of peanut flour and the goal is to increase patients' tolerance over time. the clinical trial showed it was able to do that successfully for most patients. because the treatment is the thing some are allergic to, some had reactions and required ep nef -- ep nshots. >> thank you for being here. >> thank you so much good afternoon. >> it sounded like relatively good news. stock is trading off a little bit this morning what do you make of investor reaction. >> it's a fundamentally important time for us and the treatment of folks with a food allergy, and sometimes you see

the stock run up a little bit coming into these advisory committees because we publish or briefing documents and the fda publish the documents they are making available to brief the advisers in advance of the meeting, and we saw a little bit of that last week. for us, what's more important is the downstream value here. we're in this for the long game, and there are a lot of people who don't have therapeutic options for the allergy at the moment. >> it's going to be welcomed by parents, anecdotally, friends of mine with kids dealing with this are thrilled we're wondering about the cost. >> we wouldn't be an awesome company if we were bringing therapies to market where the patients could not afford that, so we're right in the middle of doing the work on what we're going to be charging for this. our goal is to make certain that the patients and families who need to get access to this kind of medicine will be able to do that. >> what are your conversations like with the insurer community right now. some people might say this is just peanuts, why should we pay thousands of dollars for that. >> it's not just peanuts

if you went out and bought different kinds of peanut flours and looked at the content, there's a 400 fold difference in the amount of peanut protein you can find from one flower to the next, and when you're doing immunotherapy, you start with tiny doses of the thing someone is allergic to and increase slowly over time but the exact amount of the dose and pro teprs really very important. the protein they're getting is exactly the same every single time, and the doses we can deliver are accurate the lowest dose we give when we start this is 1/600 of a peanut. it's hard to do that without having something that's weighed and made in a proper pharmaceutical facility. >> you might have partly answered my next question which is going to be about what makes your therapy so special. if what you have done works, why couldn't tons of other companies

rush into this space and provide the very same thing. >> this is exactly the core of it is that we have this finger print that ensures every patient who takes the product gets the same allergen over and over one of the things we have observed when doctors try to do this treatment with food products, patients can get treated on what we call desensitized and resensitized again as they use different versions of allergens. this is very important to the product we have. >> about the safety profile of this product, what do you say to parents who say i would love to get this protection of my child. i'm terrified to get the very thing that could be dangerous for them how do you manage that safety profile? >> the idea of giving someone very small doses of the things they're allergic to has been around for about a hundred ar there are about 3 million people every year who go and have allergy shots for they hay fever. that's exactly the same biology as what we're doing and we know those shots can cause allergy

reactions as you're getting desensitized to whatever it is that's causing your hay fever. here we have the same thing. the difference is this is an oral therapy and it's treating a life threatening disease rather than something that is just a quality of life disease. our job is to make certain that parents and families understand exactly what it is they're getting into with this therapy, and really pointing to the end game, and the end game of this is knowing that your child can go to a birthday party or summer camp, holiday on an airplane, which they may never have done before, and if they get exposed accidentally to peanuts, they're not going to have a life threatening event. that is really the end game of this we're not suggesting folks should eat a lot of peanuts. they should continue to avoid peanuts, they're still allergic, but they're not going to have a life threatening reaction. . >> that would improve the quality of life for everybody. dr. jayson dallas, thank you very much. coming up next, united auto workers holding their first

strike since 2007 with members walking out of gm plants at the stroke of midnight we're going it head to detroit for the latest, including the impact on the auto maker coming u. tune into "mad money" tomorrow, house speaker, nancy pelosi wiljol in jim cramer, that starts at 6:00 p.m., you won't want to miss it. nce, so you only pay for what you need. wow. thanks, zoltar. how can i ever repay you? maybe you could free zoltar? thanks, lady. taxi! only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ - [woman] snhu was theation 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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welcome back, the united auto workers are out on the picket line in detroit with the latest this afternoon. phil >> reporter: here's what's going on in those negotiations they are still at the bargaining table. we're not going to get an update likely today we're talking again and from there we probably won't get an update maybe not today, maybe not for several days the key two issues, job guarantees they want general motors to limit the use of temporary workers which gives the automaker more flexibility one area where you're unlikely to see a lot of concessionconce comes from their use of plants in mexico. last year they built imported from there 633,000 vehicles made

up about 29% of the vehicles general motors sold in the united states. gm is the number one importer from mexico. you'll hear a lot of people at the uaw say instead of building a vehicle down in mexico, you should have built it in ohio from talking to those close to goe goe negotiations general motors is discussing an electric vehicle battery plant that will be staffed by uaw members by the way, guys, take a look at shares of general motors it's at the lowest of the day, this is not a huge impact on the stock, at least not yet. >> on a different and much sadder note, we want to let our viewers know that a long time friend of the network and a plugged in voice about the auto industry, paul ingrassia has

passed away. he spent many years at the wall street he became president of dow jones news wire. he authored several books about the ups and downs of the big three. he was just on with us a couple of weeks ago he was very sick he wanted to keep his appearance it's terrible news to have to share this hour. >> reporter: it is my thoughts are of paul as a friend one of the kindest people you would meet he's just a good hearted, genuine person the kind of person when he would come in, it was rarely talking about the auto industry. it was always talking about what's happening in our lives personally with regard to paul as a journalist, go back and read a lot of the coverage in 1993 and the gm management crisis textbook journalist. he'll be missed by a lot of

people >> wonderful man thank you very much. we'll be right back. through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business. from managing inventory...

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said to restrict e grets this afs new york banned e-cigarettes yesterday more states start restricting vaping products in efforts to combat the epidemic that's claimed six lives and caused hundreds of illnesses. the irony is they were created to help people quit spoking come buttable cigarettes. it's when they started vaping, they couldn't stop it's great to video you both here j juul was set out to create a better way of people to quit cigarettes what do you think is happening now that there's a risk

e-cigarettes could be banned all together >> it's a huge risk for juul they were founded as a way to switch smokers off of e-cigarettes they were looking to target smokers. i don't think they were looking to target teenagers. we now have this epidemic both among teenagers with flavored pods but with black market e liquids. it's a probably they will have to deal with >> there's regulators going off the false advertising. you cover this you have first hand family experience with this in getting your dad switched off cigarettes >> i was reporting on adults ya using this to switch off i spoke with my dad. you're in your 60s he's always been quitting. nothing has worked why don't we try this. he agreed. i bought him starter kit

he liked fruit for some reason >> your dad was smoking tobacco cigarettes wanted the fruit flavor >> he didn't care. he was not interested in anything else. he wanted fruit. at first he didn't like it about a week later he said he ditched the cigarettes all together since then it's been ten months and he hasn't smoked we don't know the long term health effects but it's not a cigarette. >> are you worried about him using the products are and have we learned the dangers from vaping is it the act of it or faulty or products that involve thc that are an issue >> we don't know the long term health effects of vaping it seems like with this outbreak they are looking at thc as well as nicotine. it's hard because people are using multiple products. it does seem like it's a lot of these thc products >> people will say you were going after kids

why else did you have candy corn or whatever flavors of e cigarettes you were making it seems like that was an intent to appeal to younger taste although it's interesting someone like your dad, a long time smoker would reach for the flavor >> they wanted to make this a luxury good. the co-founders wanted to really find urban professionals who are smokers who wanted to quit they did samples at trendy nightclu nightclubs that's a huge missed opportunity. many smokers were below the poverty line a and do not have a high level of education. it's a huge market they could have tapped but they chose to market to people like themselves >> is there a risk this ban goes forward now on all products? >> right now they're saying that tobacco flavor will be allowed to stay on the market. it's menthol, fruity flavor,

straight the trump administration that's a huge problem for juul over the past year of their 3.3 billion dollar of saeshlles, mo than 80% came from flavors >> huge problem. thank you. appreciate your sharing your stories. thank you so much. catch vaporized at 7:00 p.m. eastern. "power lunch" starts now thank you very much. we will see you over here at "power lunch" in a moment. welcome, everybody here is what's new at 2:00 on a monday oil spiking. energy stock onss on a wild ride taken out in drone attack. we have the latest on that markets on edge as geo political tensions rise and the fed decision later this week loom large. we will break down the biggest risks to your money this week