over-the-counter medications next month with alphabet's drone service called wing. already they're doing this >> drone deliveries. they're coming faster than i think everybody expected so you've got fedex, walgreen's, ups, amazon, all getting in this game >> this has been fun wasban't it fun >> it was fun. by the way, color coordination >> prom night on "power lunch. "closing bell's" next. wlbl to "the closing bell," everyone i'm wilfred frost here at the grub hub post. the delivering alpha conference highlights are coming up broader market treading water with 59 minutes left to trade. >> welcome, everyone i'm sara eisen let's look at what is driving the action right now trade talks taking place in washington but some hawkish quotes from the u.s. side weighing on stocks upbeat data from the labor market pointing to a steady economic picture and yields lower pressure on the short-term spending market eases a bit.

joining us for the hour stephanie link from nuveen, a tiaa company so we lost the gains is it on fears ha a trade 2k5e8's getting pushed snout is the market expecting a trade deal at this point >> i think we're a little more optimistic about a trade deal most recently and that's why we rallied as much as we did and that's why rates actually increased over the last couple of weeks but yeah, i think the commentary today about trade kind of pushed us down. but i really think we're still trying to digest what the fed said yesterday i do think it was a hawkish cut but i also thought that powell walked it back -- >> why was it a hawkish cut? >> because you have the dissenters and you were talking about it yesterday you were right on it as soon as it came out yesterday about the dissenters and i totally agree with you on that here's the quandary. the economic data in the sfats is not bad we had great housing data yesterday, pretty good data on housing, i.p., retail sales. jobs continues to be good. so if he's watching the data, then the data says he's probably not going to cut further if he's watching global growth

and trade, then he probably still has to so i think that's what's happening today, that we're a little on the confused side. i know for a fact i'm not doing very much, although i did add to d.r. horton today. >> if he's watching the norwegian central bank he might hike >> that was a surprise >> that was a surprise but no one else is doing that. >> everybody else is easing. >> we've got lots with stephanie throughout the next hour but let's focus in on the big stories we're watching today scott wapner's at delivering alpha with some of the day's top investment ideas kayla tausche has the latest on the trade with china mark zuckerberg meeting with lawmakers on capitol hill. scott, let's start with you. >> all right, wilfred, thanks very much. big day delivering alpha visited with several big investors including the legend leon cooperman. he said the market is in a fair zone of value. something he's really been saying for the last couple of years. and then he offered up this zinger on what would happen if elizabeth warren became president. >> right now the market is assuming donald trump is

re-elected if it looks like elizabeth warren is a credible -- or bernie sanders is a credible opponent to trump, the market will not be higher, it will be lower. >> by how much >> well, i can tell you she'd be a bear market and bear markets generally go down for a year and they go down 25%. >> so it would be that severe. >> i would say that basically her policies are counterproductive. they're negative for capitalism. >> cooperman quipped on the stage during a conversation i had with him and jim chanos that the market wouldn't open if elizabeth warren was elected president. yes, i caught up with jim chanos as well who revealed a couple of new shorts the first, the kidney dialysis company davita here's why >> this is a company that's paid a billion two in fines to the government over the last ten years as a course of doing business it's a company that has pages and pages and pages of risk factors intheir 10k. this is, again, a company that

over 100% of their operating earnings are coming from this scheme and look, if we get medicare for all or medicare option or the aca is shut down due to the federal court ruling, this business model blows up completely >> that would be bad news for berkshire hathaway because they have a more than 20% position in davita that's what makes that story even more rich despite the fact that it's one of the most famed short sellers of all time who's revealing a new position in that company, davita. and by the way, chanos talked about another new short that's just become public in the last 24 hours that on the food delivery company grubhub. >> right now grubhub is making almost no money per order,ing? like 15 cents an order there's just no margin in this business and you're basically putting two more hands outstretched for the restaurant guy saying pay the delivery company, pay the

driver, for money that they're really not making. >> all the stocks in question today moving lower yet another example, guys, of how the market masters here in delivering alpha cause stocks to move every single time guys >> scott, were there any implications given its uber eats business from the grubhub pool >> we asked him about that as you might expect, wilf the ib of how not only grubhub but how uber and lyft account for their employees as contractors rather than employees is an issue. so i asked chanos should we take away that he short uber as well? he gave me sort of a wry smile and wouldn't go there specifically but he sounds like he's negative that whole sort of section of the universe >> and we saw a reaction in uber shares down 1.4% scotts, go scott, good stuff. thank you. u.s.-china trade talks are under

way. let's get to kayla tausche >> for the next couple of days u.s. and chinese trade officials are going to be sitting down hashing out issues like agriculture, like fentanyl, and like currency. and as these talks are going on, a bear, a hawk on china michael pillsbury of the hudson institute who's been advising president trump from outside the white house on trade tells the south china morning post if there's not a deal soon that president trump could escalate things and tariffs as high as 100% we know president trump is the tariff man, he has a steel stomach for things like that we spoke to another outside ally of the white house on trade who said that pillsbury is freelancing but that the president likes that because it gives him more negotiating room and it's sort of a good cop bad cop dynamic that allows him to ramp up the pressure on china even as his negotiators are in the room trying to do that work. but even so, we are seeing some positive signs emerging that china is here in the u.s. to check off some of the boxes that the president has laid out we have learned through our

sources that chinese officials are planning to go to farm country, specifically in montana and nebraska, to meet with farmers face to face and secretary of agriculture sonny perdue this afternoon said he is hopeful that accompanying those visits are purchase agreements listen >> and we hope that these purchases or agreements or these talks this coming week can be fruitful and lead momentum as was said into further discussions of a trade resolution >> those visits that were first reported by cnbc are going to be taking place early next week so these talks might officially end tomorrow, guys but they're going to unofficially continue throughout next week. back to you. >> kayla, thank you very much as always speaking of washington, fbs ceo mark zuckerberg is on the hill today meeting with lawmakers ylan mui has the latest for us >> zuckerberg is meeting with senator josh hawley, a

republican from missouri you can see all the reporters and cameras outside the office there anxiously awaiting the end of this meeting. so far it's lasted just over about half an hour and before he came down here to meet with hawley he met with utah senator mike lee, another republican lee said they spoke about several key issues including bias against conservatives on the social media platform, anti-trust government regulation, the section 230 liability shield as well as data privacy. but lee did not characterize the tenor of those meetings. he has been critical of facebook and of big tech in general in recent months. we will see if senator hawley gives us some more information about how that meeting went once it wraps up. we do expect him to address reporters and we'll bring you all the latest when we have it back over to you >> all right keep us posted ylan, thanks stocks trading kind of mixed to lower. we lost some earlier gains following yesterday's interest rate cut by the fed. i spoke with marathon asset

management ceo bruce richards at delivering alpha this morning. here's what he said about this global move from central banks toward negative yields >> it's a fool's game. and i believe that treasuries trading negative is the most absurd thing the central banks have ever done and that it will blow up in their face. >> for more let's bring in sarah bloomrask and former federal reserve board governor and former deputy treasury secretary who was at our delivering alpha conference sarah, welcome is it going to blow up in their face, going to negative rates? >> well, i'll tell you i mean, chairman powell made it pretty clear yesterday during the press conference that negative rates are not on the horizon. he went so far really as to talk about what the playbook is going to be should we have a prolonged downturn and i thought that was really quite significant because there is a lot of chatter in the air about negative interest rates and whether that's going to be

an important tool should the fed want to do more in the area of stimulation. >> the other question on the topic of the ecb and negative rates, sarah, is whether even if it doesn't blow up in their face, whether it achieves any extra growth from where they are now. i don't know if you saw the very tepid demand from their latest tranche of bank liquidity that they offer up to the european banks. but is it suggested at this stage in the cycle from where we are already there's very little the ecb can do >> yeah. i think that is close to being right on the mark because of course negative interest rates are untested really. we don't have good results from the times they've been tried they've been, you know, in place at the ecb for a while we see what the results are there. and of course the bank of japan has been living with negative interest rates for a while, again, with mixed results.

so i think -- i think the jury's still out on whether these are going to be an important tool that somehow get accommodated or get used by the u.s. >> so at the top of the show, sarah, we talked to stephanie link, who has a pretty good pulse on the market here and was saying that the digestion of the fed is actually a little hawkish because if he's data dependent the data's not pointing to another cut. he's also got a very divided federal reserve, which has only grown more so. and that also doesn't necessarily point to a cut so is that the right interpretation >> i think that is the right interpretation you're got pragmatic considerations, which is that chairman powell is now drawing three dissents from both sides and so that is -- he's kind of -- we kind of see the fraying of a consensus so pragmatically, yes, that would suggest that the end of

easing may be signalled. and of course the indicators he made it very clear that he is keeping his eyes on the dual mandate. from his perspective labor market conditions look good. he feels we are close to maximum employment he's also signaled that monetary policy is doing better things to getting us toward that 2% inflation target so from the dual mandate perspective i think his focus there was to send a signal that the economy from his perspective is doing just what it should be. >> steph, whatever the fed did yesterday, the rise in yields we've seen from the prior couple of weeks has paused. does that mean the rotation we've been seeing in the stock market is going to pause as well >> well, it certainly has paused this week for sure i think it all depends on the economic data. right? if the economic data comes in weaker than expected, then it's very hard to see value outperforming growth but here's the thing that when i

talked about the economic data being a little bit better than expected here, inflation is starting to creep up a little bit here so that is something that bothers me now, i know they look at the core pce so i get that. and that's still very tame but the core cpi last three months annualizeed is 3.4% that's a big number. and then the philly fed and the empire manufacturing series. both series showed price increases and that's not good. it's something we have to watch not only the headlines and the data but now inflation a little bit. i'm not worried yet but there are starting to be some signs here >> sarah, could that mean we start to see a steepening of the yield curve for the wrong reasons if we do see inflation pick up? >> yeah. so i'm not so sure that it's the inflation side that has me worried. i think we've got to keep an eye on what's going on in the repo market today was the third day. this shouldn't have happened

really it's not particularly a great sign that the fed has to keep injecting reserves into the repo market >> there's another operation on friday just crossing to your worries. explain why that's got you concerned. >> yeah. so i think the fed is going to have a timing issue on their hands. they want to -- they should be thinking about whether they want to put in place a more permanent kind of facility so that they can forestall the lack of confidence that continuous injections might be instilling at the same time the setting up of a permanent facility itself could foster questions about the right level of reserves and why this is happening and why this is happening now >> sarah, great to speak to you as always. thanks very much >> thank you >> still ahead here on "closing bell," former ford ceo mark fields will tell us when he thinks the general motors strike

could end and will react to the white house's move to revoke california's auto emissions authority. >> and then we will discuss the future of fake meat with the ceo of impossible foods, which announced today it's going to start offering products in some grocery stores for the first time as we head to break, a quick check on our data tracker. existing home sales unexpectedly rise 1.3% in august highest level in 17 months wall street was looking for sales to decline by 1.1% dow's down 23 points 45 minesilthcle.ut tl e os woman: what gives me confidence about investment decisions? rigorous fundamental research. with portfolio managers focused on the long term. who look beyond the spreadsheets to understand companies, from breakroom to boardroom. who know the only way to get a 360 view is to go around the world to get it. can i rely on deep research to help make quality investment decisions? with capital group, i can.

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♪ this is the third day in a row we've had toto >> it's good, though >> i love it but it's a little much, no 42 minutes left of trade the dow negative, the s&p positive let's send it over to mike for today's market dashboard mike >> well, thanks very much. here's what we have ahead for you. acts of self-determination, or some corporate self-help in the form of buybacks take a look at that.

then can't dance together. some contrasting moves between equities and bonds over the past year take a closer look there no nervous breakdown that's a look at the internals of the stock market, which remain pretty firm then a very prime number that's a key indicator of this economic expansion we'll get a check in on that first self-determination buybacks are back in the news. microsoft of course announcing last night another $40 billion refresh to its stock repurchase plan microsoft shares making a new all-time high today. take a look, though, at the performance of the buyback-oriented exchange traded funds. this is over the past year and you'll see they've kind of held their own depending which angle you take on it this is the buyback achiever, has basically kept pace with the s&p 500. though the buyback etf from spiders has lagged it a little bit. that's partly because a lost financials in this one right here and also not a lot of consumer staples but then look at it over the last five years. there's this whole notion in there that buybacks have been principally keeping the stock market afloat. if that's the case why don't the

buyback stocks seem to be able to keep up you're seeing here the s&p 500 is handily outperformed overt past five years these buyback-oriented companies buybacks put cash back into investor portfolios. they can be recycled into any stocks, not just the same stocks that brought back the shares but to me it challenges the idea that it's been a principal driver of stocks it's been part of the overall story feeding the ecosystem of a bull market, guys. >> mike, thank you do you think it's been a driver of stocks? >> it's been a help. but i would say that there are certain sectors that have benefited more from buying back their stock than others. right? you want the software companies with recurring revenues and strong free cash flow to absolutely invest in their businesses but also they're buying back stocks that's why i think microsoft makes perfect sense. makes perfect sense. and i think you're going to continue to see that sector be the leader in terms of buybacks and thebl the ones that get rewarded versus other industries beyond meat getting a bounce

after barclays initiated coverage of the stock with a buy rating up next we'll hear from the analyst behind that call >> and we will also be discussing the competition it's facing ceo of impossible foods telling us about the move into grocery stores later on "closing bell.

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hi, mr. zuckerberg, how did

the meeting go today what was your message to lawmakers, mr. zuckerberg? can you assure lawmakers that your platform will not be manipulated ahead of the next election did you talk about possibly breaking up facebook did you talk about privacy legislation? are you hopeful that it will come to the floor before the end of the year? are you ready to deal with california's privacy legislation? did you talk about removing harmful content from your platform what did they think about your ideas for doing that mr. zuckerberg, do you plan to go to the white house and meet with president trump do you plan to meet with anyone from the administration while we're here >> god damn it >> oh, a brilliant effort, ylan mui. that was mark zuckerberg just

leaving a meeting with senators. >> nine very pertinent questions rolling off ylan's tongue there. >> only saw the back of his head completely ignoring you. >> he did not answer any of the questions. they were actually more than that he was on his way to the next meeting here in the russell senate office building he was leaving a meeting with senator josh hawley when i caught up with him we know that zuckerberg has laid out four areas that he hopes to work with lawmakers on they are harmful content, election integrity, privacy and data portability he's laid out plans to deal with all of those and is hoping to build support for that here on capitol hill we are hoping to hear from senator hawley in just a few minutes here about how the meeting went hopefully senator hawley will be a little more talkative than zuckerberg was back over to you >> ylan, what's the reception from lawmakers clearly it's progress that he's there. and taking lots of meetings, albeit behind closed doors so not the full step perhaps

they would have liked to see him contribute to hearings on the record >> yeah. so lawmakers have been pretty tight-lipped about how these meetings have gone senator hawley's comments will be the most extensive we've heard so far we did hear from senator mark warner who was on cnbc earlier today. he had organized a dinner at facebook's request with zuckerberg last night, and he said that facebook seemed to be a little bits more humble than they had been in the past, that they recognized there's going to be legislation and regulation that's going to be put forth, but that lawmakers wanted them to know that this is not just a democrat, a republican issue, there is bipartisan desire here to see these companies be reined in and to see them be taken on and held accountable in a more direct way >> ylan, thank you ylan mui time now to get word on the street mcquarry giving u.s. steel a double downgrade to underperform slashing its price target to $9

from $18 a share this after u.s. steel gave a weaker than expected third quarter outlook. mcquarry believes u.s. steel could burn over $1 billion of cash unless the steel market's supply demand improves significantly. >> bernstein downgrading costco to underperform but raising its price target slightly to $230 from $220 a share. the firm seeing fundamental risks to domestic and international growth as well as membership exhaustion and saturation do you disagree with this one, stephanie? >> well, i do. but i understand why she's taking profits but yet she was only market perform the whole time it's up 40%. it trades at 33 times earnings but as i've said it many times, i have very few companies that are seeing 5.5% same-store sales growth, 4% traffic growth and 23% to 25% e-commerce growth that's really great for a company of this size and they have a moat they really do so yes, from time to time it gets really expensive. you just kind of have to sit with it and maybe pick at it

when it pulls back because every single time i sell this stock i regret it. >> what about this idea, though, about peak club counts, members per club peak out, saturation? >> i think something to worry about -- >> it's certainly been a big part of the story. but remember, this is a company that even if it is saturated the recurring revenue, we talked about that, right? with the software. these guys have like 75% of their business's membership growth so that to me is a very powerful moat and they do have international expansion opportunities too. i do get it. it's been a really great stock but i'm going to hold on to it >> barclays initiating beyond meat as outperform with a $185 price target the firm estimating beyond meat could reach 4.5% market share of the global alternative meat industry joining us now, the analyst behind that note, benjamin tura from barclays. ben, thanks very much for joining us i mean, bullish with only a 4% or 5% market share you just think this market is enormous it doesn't really matter about the competition. >> well, essentially that's what

it is. i mean, if we consider the meat market in between what is food service and retail could be estimated somewhere 1.4, 1.5 trillion dollars globally, and if we consider that maybe in some 10, 12 years' time alternative meat could take about a 10% share of that, that would give you roundabout $140 billion. so if we take a look at our more long-term estimates for beyond, we're seeing them at a little over 6.6 billion in revenues by 2029 obviously from a level that is much lower right now, more in the 240, $250 million level. but still nice trajectory up to the 6.6 billion. and that would be as said, roundabout just about 4.5% of the market share and it's a big market out there. it's a big market. >> some people look at this stock and say it's a bubble and it's indicative of the fact that people are desperate for high

growth companies and if the market turns or the cycle turns, it's vulnerable what do you say to those fears >> well, i mean, obviously there's going to be volatility on the way up and might be some quarterly disappointments or news flow, which is just not as favorable as you would expect. but clearly the one thing, what we highlight a lot as well is that other big companies are really considering this to be a sector to be interested in i mean, we have large companies like tyson, jbs, hormel. there are a lot of companies that have started to invest in alternative meat as well so it's not just crazy california palo alto yfdidea of startup company. there are big food companies that go into that concept of alternative meat as well and i think together they can make the whole market just bigger and better and with that clearly it's going to be volatile on the way up but i don't think it's a bubble

considering that the product actually sells very well >> then where do you stand on the debate as to whether these products are good for the environment only but not so good for the consumer of the products because they're not in fact that good for your health >> there's a good point about it i mean, clearly if we take a look at the greenhouse gas emissions that are associated particularly with cattle farming, we all know it's a big footprint and obviously if you cut down on the consumption of red meat by switching from real meat into alternative meat you can do a favor to the environment by just having less cattle but clearly the health benefits of that are not as much maybe as promoted we all know that some of the alternative products score fairly high when it comes down to sodium levels they're much better on the cholesterol. so it's kind of try to pick your poison i still believe with the development we're seeing in the products that we're heading into the right direction. and i would assume that in some

years' time the actual level of some of the ingredients and sodium and so on being much better and with that in mind you basically end up with better health stats in the future and you still get something for the environment. >> ben, thanks for joining us on the call today >> perfect thanks >> we're all over it impossible foods ceo >> looking forward to that >> 28 minutes left of trade. just lower on the dow, 33 points, just higher on the s&p here are the key things driving the action trade talks taking place in washington today with some hawkish quotes from the u.s. side weighing on broader zmimt plus upbeat data from the labor market pointing to a steady economic picture and yields are edging lower as pressure in the short term funding market eases. >> time now to get a cnbc news update with sue herera hi, sue. >> hello, sara hello, everyone. here's what's happening at this hour a massive truck bomb killing at least 20 people and devastating a hospital in southern

afghanistan today. the victims included relatives who came to visit patients in the hospital the taliban claimed responsibility for the suicide bombing. israeli prime minister netanyahu's offered to form a coalition government with his main rival benny gantz was quickly rejected neither side has enough seats to allow their leader to become prime minister outright. but gantz's blue and white party did garner two more seats than netanyahu's. the cdc says 530 people have now been diagnosed with vaping-related breathing illnesses. but the cause remains unknown. and that number is up from 380 just a week ago. seven deaths have been reported. and a memorial service for family and friends of t. boone pickens is being held in dallas today. a public memorial will be held september 25th at his alma mater, oklahoma state university the oil tycoon died on september 11th at the age of 91. you are up to date that's the news update this

hour wilf, sara, i'll send it back downtown to you. >> sue, thank you very much. coming up, we just talked beyond meat. we're going to dive more into the alt meat space when we talk to the ceo of impossible foods it's a first on cnbc interview the company announcing today it will make its grocery store debut in california. >> but first, former ford ceo mark fields gives us his take on the uaw strike and its impact on gm e ckn coleinesut don't go anywhere. servicenow put our workflows in the cloud.

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welcome back amazon's jeff bezos unveiling a big plan today to tackle climate change and as part of that a new delivery van partnership >> we have a lot of delivery vans and they all burn fossil fuels today. i'm incredibly excited to announce that we have just placed an order for 100,000 electric delivery vans they'll be built by a company called rivian. >> let's go to phil lebeau for more on that company, rivian tell us the latest on what we may not know about this company. >> wilf, rivian is an ev startup. they basically have a skateboard

platform where the vehicle can be put on top of the electric battery and the skateboard has basically it's interchangeable with other vehicle platforms in the future at least that's the theory there. this is what the amazon rivian van is expected to look like now, the first delivery will be by the end of next year. who is rivian? well, amazon is an investor in them took an investment stake of $440 million. you also have ford investing 500 million. they just recently announced that cox automotive, which is the parent of kelly blue book, auto trader, investing 350 million. they have a plant in normal, illinois and that's where these vehicles will be built. as you take a look at shares of amazon, keep in mind that the first vehicles will not be delivered pl the end of next year and then you start to see them ramp up, at least in theory, that's the plan, starting in 2021 guys, back to you >> thank you joining us now to discuss that and a whole lot more, former ford ceo now senior adviser at tpg capital mark fields. fields expanded ford's electric vehicle offering during his tenure

welcome back nice to see you. >> always good to be here. >> what do you think about this expanded relationship between amazon and rivian? >> well, it's interesting. they took the investment probably six, seven months ago soo they must have done their due diligence. it's a bit of a risk because they say they're going to have this vehicle out literally in the next 12 months and that's aggressive timing to bring a new vehicle out on an all new platform but they must have confidence. >> for a delivery van as well is that even bigger risk than if these were cars given that they're electric vehicles, they're going to use more battery power? will they need stronger more long-lasting batteries >> no, not necessarily it's really a purpose use vehicle. so you can be very focused on how you develop it and it actually could be actually simpler but still that kind of time frame, 12 months having a vehicle on the road and the numbers they're talking about within the next 12 months, that's a pretty aggressive manufacturing ramp >> when you see a sizable deal like this, is it good for all ev manufacturers, a vote of confidence for that subsector of

the industry or is it bad for tesla that they didn't get this deal >> well, i think it's good for the whole industry because at the end of the game in electrification is you've got to bring the cost down for the batteries and you do that through scale. so as long as they're purchasing batteries, for example, through common suppliers the whole industry can benefit on economies of scale on that and that's the key to getting the cost down and getting the price right for customers and getting good margins >> wanted to get your take on the uaw strike and what progress if any has been made between gm and where do you think this goes >> well, it's really interesting. from the automakers' standpoint they're facing a global market that's slowing down. they're facing their investments in electrified vehicles, which is an untested market and also a market where the margins are lower. they're facing pressure on climate change and they're dealing with the trade war, which is upending their supply chains so you have that all going on, which means they have to be as cost competitive as they can going forward. on the other side you have the

uaw and their workers who want better wages they want at least -- at a minimum to keep their gold-plated health care. they want lower use of temporary workers and they want to eliminate the two-tier worker system, wage system they have. now, every four years you also have unique circumstances. the one unique one that they've never had is a widening corruption investigation for the uaw. and that's really important because the oems, when you reach a tentative deal the oems are relying on the union leadership to sell that to their rank and file and so i don't think with that corruption probe, it doesn't weaken the uaw's negotiating power but what it does do is weaken the loyalty and the trust that the rank and file have in the leadership so this is going to be really interesting because gm has taken a bit of a hardball approach and at a minimum it doesn't build goodwill with the rank and file

and at worst it angers them and makes them dig their heels in. >> so do you think this is going to go on for quite a lot longer then >> well, it could go on. gm took a very -- they broke protocol in which they talked about the proposal that they put on the table and that's important maybe they were frustrated because of the strike or maybe because their message wasn't getting out. but the question is where do you walk back from there and that's i think a bit of the corner that they've painted themselves into, but the key is having a working relationship, at least a collaborative working relationship as you're working through the negotiations and that's been going in the wrong direction. so this could last -- >> sounds like what you're saying is gm should stand firm because they have the leverage this time with the corruption and some of the economic factors at play. >> well, they should stand firm if -- the main reason is they need to be competitive with the non-union automakers that's the bottom line but they have to have that relationship with the uaw that says you know, at the end of the

day they have to understand what is the victory speech that the uaw can give their workers to sell this agreement. and that's going to be problematic at this point. >> how can gm stay so strong, though if it's going to go on for such a long time they're clearly going to lose market share overall. so how can they afford to stay -- >> well, not necessarily they have a lost stock out there, a lot of inventory. they've built it up. so if it lasts a couple of weeks, it's not going to impact them beyond that it's going to start making those inventories tight but usually what you see for a lot of consumers who've made up their mind on what they want to buy, they'll just stay out of the market for a period of time while other manufacturers are selling. so you'll see some share shifts but that may shift back. >> what do you make of the clash between california and the epa on emissions standards and the fact that some manufacturers have committed to higher standards regardless of whatever the government decides >> well, this is really interesting because you know,

what the automakers want most is certainty around the regulatory requirements and so the deal that these four automakers struck with california it was a compromise right? they affirmed that california has its state right to set its fuel economy standards, but at the same time the oems got certainty and they also got a rollback, a bit of a rollback on the obama-era fuel economy requirements but i think this agreement was non-binding. it was voluntary so these four oems actually are playing both ends because at the end of the day they've gotten their good graces from the state of california and if the federal government is successful in bringing back the waiver then they got lower fuel economy requirements so they're playing both ends >> and finally, got to ask you about ford, getting downgraded to junk for the first time in a few years. one of my panelists at delivering alpha this morning suggested it was some sort of indication of where we are in

the cycle. what do you think about it >> well, i think first ford is a great company. they're in a cycle now where they have a lot of great products coming out over the next 18 months and clearly they're going through their retrustructuring which is going to cost some money. the rating agencies look lu that lens for a certain period of time but there's a great team at ford and they've got a lot of great products. >> you don't worry about credit stress >> excuse me >> you don't worry about credit stress for this company? >> no. no you look at their balance sheet and over the last number of years and even during my tenure we had built up a very strong and fort rressed balance sheet keep paying dividends but keep the company in a very strong position >> thanks for joining us >> thanks for having me. >> tomorrow marks the one-year anniversary of a key moment for the s&p 500. we'll tell you what investors should know about it next.

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that stock down more than 4 1/2% let's get over to mike for the second installment of the dashboard. hey, mike. >> wilf, stock and bond prices can't always dance together. but sometimes they do. let's take a look at a one-year chart showing the price earnings, forward price earnings ratio of the s&p 500, and the corporate bond yield investment grade corporate bond yield. why is it one year one year tomorrow is the peak for 2018 of the stock market the s&p 500 closed r closed at 2930 would go down just about 20% over the fourth quarter before rebounding almost as quickly what you see here is the forward valuation is almost exactly the same today as it was one year ago. 17 times forward earnings. that's not really telling you there's a great deal of valuation cushion underneath the market however, look at what's happened to corporate bond yields they've gone from above 4% to about 3% that's relate going to refresh corporate balance sheets and support valuations to me this is the determinative

of whether you think we're fairly valued. last year we had three more rate hikes priced into the market now we have at least one more rate cut some different circumstances for a very similar market valuation, guys >> mike, to what extent have we got back to that same p/e valuation with earnings coming down as opposed to necessarily stocks rallying aggressively >> aggregate earnings are up slightly so the s&p 500 is up 2 1/2% since that point so the forward earnings estimates are about the same or just slightly higher so it's mostly been kind of valuations holding in there because stock prices are up 2 1/2% and the forward snats are up a little bit versus where they were back then. but back then earnings would come down over the course of this year. so in other words, 17 times was the optimistic estimate of earnings and actually the valuation was in reality much higher, though at that time we didn't quite know it. >> mike, thank you very much see you again in a minute. we've got just under ten minutes

left until the close we are at session lows as well down 74 points on the dow. s&p joins the dow in negative territory. nasdaq just holding on to a frxal gain up next your last chance trade >> after the bell impossible foods make its way into grocery stores we'll break down the rise of alternative meat with the company's cein fstn bc teiew. air ocn (nervously) ready?

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it's down about 50% in the last few weeks after they posted a very good quarter but they got it a little bit lower. this is cybersecurity in the cloud. they have very differentiated products they have a $40 billion total addressable market a partnership with microsoft gives them credibility and they just put up 50% revenue growth -- >> why are they down so much >> because they did 50% billings growth in the quarter. they guided to 30% for next year i think they're being conservative this is a secular growth story soo cybersecurity in the cloud only two companies out there doing this well. this is one of them. it's not cheap but 11 times revenues it was 25 times revenues just a couple weeks ago >> profit making loss making at this stage >> this is a company we focus on revenues and billings. that's really what you want to do that's how you have to win the beginning stages of these kinds of companies >> by the way, shout out to josh brown who chose danaher yesterday. trading at an all-time high

today. >> maybe we'll dot same shout out for you tomorrow we'll see. >> good high, though >> time for the closing countdown. we've got four minutes left to trade. the dow down 50 points chris pollard head of market strategy at cowan. you've been looking at yields. how that's affected the equity market moves is that right? >> that's right, wilf. good afternoon thanks for having me so we're keeping an eye on yields this afternoon as they continue their downward trajectory from the highs registered friday. what's important about that is when we exited august the world had overpriced fear of recession and adequate policy response while there is a slowing growth trend broadly the u.s. is still performing better than the rest of the globe and the concern the u.s. would be dragged down with everybody else had become overpriced that being said those issues are still structural and now we have the addition of some short-term money market overhang that is going to cause an asymmetric bias to the down side and yields so this move lower is confirming that to us >> all right, chris, thank you

for joining us into the close. let's send it back to mike santoli for the third dashboard. mike >> sarah, breadth is evenly mixed but below the surface if you look at this one-year chart of the advance-decline line cumulatively for the new york stock exchange, stocks not seeing signs of any kind of a nervous breakdown or any tentative move here. you see, this is the s&p 500, actually over the last year it's not the advance-decline but the advance/decline is showing us at all-time highs you saw the s&p struggling to get above to an all-time high. this is the running tally of up versus down stocks that is at a new all-time high i want to point out this was august of last year. that broke down before the overall market did bulls are pointing to this as a relatively sturdy underpinning to the market even though the s&p is having a struggle trying to get past those highs. let's go to chicago with rick santelli now >> i'll tell you what, mike, it's a fascinating day in treasuries because as i watch equities drifting i see the long end, 10-year yields actually firming up a little bit as you

see on the intraday chart. and basically, the lows that did the most trade right around 1.76, that's an important level. open the chart up to mid july. you remember that crazy august we had well, right at the mid-point of that big move is right around 1.76 so traders paying close attention. finally the dollar index look at the dollar index over the last couple of weeks it is just choppy, thrashing, a very unusual pattern kind of a steady eddie post-fed most traders think that the curve rate will steepen. the 10 and 30-year right now seem to be making that type of move frank holland, the nasdaq dancing on the flat line >> the nasdaq going to finish in the green for only the second time in the last five sessions, still within 2% of its all-time high microsoft also trading very close toyotas all-time high after announcing that $40 billion buyback and dividend increase after the bell yesterday. facebook also trading higher despite concerns over tech regulation with mark duzuckerbeg on capitol hill.

also announce their portal device and after launching its ipo earlier today data dog right around 40% on the other side the russell 2000 down for the week about a percent lower than the broader market despite the interest rate cut that many people thought would give a boost to small cap stocks costco one of the worst performers after a bernstein downgrade over membership growth concerns and apple the worst performer on the nasdaq 100 despitethe release of the iphone 11 tomorrow now over to bob pisani at the new york stock exchange. >> thanks very much, frank we sort of ran out of steam today. defensive tone for most of the day. new look at the sectors on the up side, health care did well today. reits, utilities tech of course doing well because of the microsoft buyback but that was pretty much it. apple down for the day sector laggards were all the cyclical names these have been up and down all throughout the month remember, china trade negotiations supposedly started today, but energy, retail, banks, metals and mining, metals and mining very susceptible to trade talks, also all to the down side. home builders had a great day,

great numbers on existing home sales, 17-month high pulte was up, horton's up, hovnanian's up owens korng on the flat side rematch, though, also hay very strong day on those existing home sales there's the closing bell dow jones industrial average is going to close essentially at the lows of the day, down 64 points the s&p 500 drifting into negative territory right at the bell good afternoon welcome to "the closing bell." i'm wilfred frost. >> i'm sara eisen here with mike santoli, cnbc senior markets commentator. take a look at how we finished up the day on wall street. lost a bit of steam in the late afternoon and the dow closed lower but just about .2 of 1%. s&p 500 hovering right around the flat line. same with the nasdaq russell 2000 underperforming again, down a fourth of 1% trade headlines, positive and negative sort of swinging sentiment this was the first down day for

the s&p in three we're pretty much flat for the week now >> down day but by one basis point. still a closed above 3,000 but in a market that's struggling for direction you announce a massive buyback you do well. i picked out microsoft today jumping healthily 1.8% it's like the s&p, back close to its record all-time high and that's what we're doing, treading water under those levels at the moment >> i picked out energy because this was a week where we saw a historic surge in oil prices since then oil's given a lot back it went up today but the energy sector in the s&p has done nothing it's only up a few percentage points for the week. just more evidence of what we keep hearing, these oil shocks and the fact that saudi output is offline doesn't affect us like it used to. the u.s. stock market, potentially the u.s. consumer and even the price avenue sets like energy companies in this country. joining us to talk about the

market today, stephanie link is still here, heaved equities research at t ichnuveen, a tia company. barry. treading water still within 1% of all-time high >> it's not making any kind of assertive move after the fed except to say this is within our zone of expectations and where we're headed next. if i look at credit markets, if i look at things like the breadth of the market nothing is giving you reason to say this is the culmination of a move. still oversold and negative enough in august that i think you're still working that off. even though the market arguably came into this week trying for some excuse to back away from this run >> a week ago we were wondering if rising yields and the equity market rotation that came with it was going to take us to new highs. are we now hoping it has to be

the mierth v microsofts of this world again? >> i've never been persuaded that this rotation was completely binary, only value stocks working was going to take the index to new highs or that this was really anything more than a forced repositioning out of some crowded stocks for a while. however, i think it all has to work microsoft kind of this unassailable stock from every angle except it closed 1% off its high and i don't know why it was up almost 3% today on a buyback announcement that was probably expected. to me there was late bit of a stretch. >> all software actually did pretty well. >> so when the market is in decent shape and the yields are kind of tame that seems to be where the muscle memory is to go into software. >> barry, what's the biggest takeaway for you from the fed as it relates to the market's direction? >> there's two issues. one is my market on whether they ease any further this year is zero bid at 2. right? the idea is if we get a trade

deal there's no reason for them to ease more they wouldn't be easing in the first place had we not impaired business confidence and capital spending so much with trade policy two is if the deal falls apart in which case two isn't going to be enough and the market's going to struggle mightily so that's sort of issue number one. issue number two is rick commented right before the close about the dollar being rustily flat this week that is true, except the brazilian real's up about 2 1/2% south african rand is down about a percent. all these currencies were down now. yesterday afternoon you guys had a conversation with mccully and zerbos zerbos came out on the side of there is an element -- i was glued to tv yesterday. it was a big tv day for me >> always "closing bell. >> zerbos made the point there is an element of the dollar shortage call in this repo

crisis what the fed is going to find themselves having to do by october, people will consider it restarting q.e but they're going to have to start ex-pangd the balance sheet by providing abundant liquidity in the front end that should start relieving some of this upper pressure on the dollar but that kind of hangs out there as a potential'll curve steepener, hits a goal, reversal in the dollar dynamic as well. that's a little unappreciated because if you look at the 24 hour since the fed to me that's the one thing that stands out, is that you still have these high yielding emerging markets currencies under pressure. >> stephanie, in terms of the fed itself, is it at least now not the key issue that could find support or derail the markets so you can focus on other issues like trade? >> i think the fed is always going to be in line. but trade takes center stage because you have the talks starting next week and we'll get bits and pieces out in terms of how it's going that's what we're really going to trade on.

the fed is really important. i think every economic data point is going to be scrutinized because the data in the states is actually a little bit better. inflation is actually creeping up just a little bit i think they're getting themselves in a bit of a box so that's why trade is going tieb little bit more important in the near term but the fed obviously the long term. and then of course we have earnings just in a couple of weeks and we're going to hear from a lot of companies. and so far on the industrial side and the metal side doesn't look so good >> i think the key is the u.s. consumer and if you look at consumer discretionary, retail really underperformed today it's a place you look because that has been the backbone of the strength of the u.s. economy. it's what sets the u.s. apart from the global economy. it's what makes the fed's job particularly difficult >> it's the key to the economy it's a little bit less the key to the stock market on a shorter-term basis just because it's not pure consumer spend we're capitalizing on.

in terms of what the fed decides to doss, they'd be okay with the consumer being in good shape, the labor market not being anything to worry about and if the global issues difference a reason to ease because the data hasn't been that great they'll go ahead and do it that's a kind of win two ways scenario where the consumer's fine and maybe still get a break down the road. >> i think the issue, though, with the consumer is consumption collapsed during the q.t.-relate crash late last year, bottomed in february. by may it was growing, retail sales were growing 9 1/2% on a year on-year basis they were at a similarly strong level in july because of prime day. but year on-year numbers back to 4 1/2% >> even housing is coming back >> housing's coming back but consumption is settling back into its trend of about 2 3/4% if there is a further hit to business confidence and the labor market weakens then this whole narrative that the consumer's fine and investment's week could deteriorate into wait, the labor market's weak and all too. wisconsin why it's so critical

to stabilize business confidence and get a deal in the next month or two because otherwise that whole deceleration it's not -- consumption is good right now, but -- >> not only is consumption good. the confidence is still quite strong it's been resilient, actually. i totally agree with you if it collapses, if business confidence collapses that's not a good thing but both have stayed fairly elevated in the face of a lot of issues out there. >> let's pivot to ipos cnbc an ips tugsal investor hosting the ninth annual alpha conference in new york featuring some of the biggest names on wall street and washington leslie pickett joins us with some of the key themes hey, leslie. >> hey, wilf a big theme was the health of the private markets versus the public markets and the state of the ipo process. >> if a direct listing is priefgd the same kind of fair information, fair access to the market as your more traditional underwritten ipo, who are we to

judge whether one is better than the other as long as investors have fair access to the information? >> we think the ipo happens in the private market now and the public ipo is really just a second bite at the apple a little bit later you've got this new liquidity there p and they're filling the coffers with capital they don't need capital in the ipo. in the public ipo. >> with the exception of the ipo market, which there's a quasi-bubble there, i think the equity market is okay. >> cooperman added that he doesn't see much euphoria in the markets other than ipos and believes there plenty of ideas to buy one he gave today at delivering alpha was wipx energy. guys >> leslie, thanks very much for nap mike, very interesting view in the middle of that that the ipo happens in part in the private market but i guess of late we've seen that the public market still

does an extra level of scrutiny that perhaps didn't take place before >> it's a reality check, especially on some of the overcapitalized companies that come out overcapitalized based on their business performance or relative opportunity. i don't know where you'd look to say the ipo market is a bubble as cooperman just did because the most hyped ipos.95 year or potential ipos have been given the stiff arm by the market. uber and lyft have not done well in the public markets. and t and wework so far has been closed off it's kind of a deal by deal thing. >> or is it the opposite given some of the price action recently >> no, for me and i don't follow this super closely but i would argue the ones that have done well have been cloud, software, security these are the secular trends

that are going to persist and some of the others said the market's called them out if there's any sort of bubble there it would be in this private investment, waiting so long for them to actually become public and it seems to me that softbank is bidding up some of these unicorns the same way the japanese bid up new york real estate when i was just a youngin' in the business back in the late '80s. >> barry and stephanie, thank you both so much for joining us. great to see you as always >> he has accused president trump of weaponizing tariffs and hurting american business. up next u.s. chamber of commerce vice president myron brilliant tells us whether he thinks a deal with china can be reached imssleoopoib fds announcing it's going to be entering grocery stores for the first time we'll hear from ceo patrick brown. we're back in 90 seconds orlando isn't just the theme park capital of the world,

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keeping your people happy is what keeps your people. that's financial wellness. put your employees on a path to financial wellness with prudential. u.s.-china trade talks resuming today in washington and here's what investors at delivering alpha had to say about the possibility of a trade deal >> if we don't get a trade deal done quickly then coming into next year china has quite an incentive to actually say no to anything and push for a recession. >> their quarters are quarter of a century. >> yeah. that's it. >> so they have a much, much longer ability to have a tolerance to do that >> we believe there is a trade war. the rhetoric will come down but

there will be no deal that's a meaningful deal, just a feel-good deal for maybe to prop the markets through the election >> not a ton of optimism there on that panel. joining us to discuss is myron brilliant, head of international affairs at the u.s. chamber of commerce you've been meeting with chinese officials representing american business what's your sense of the best probabilities right now for a deal >> well, sara, i was in china last week and met with the chinese premier and other government officials i was actually somewhat encouraged i had a small group of ceos with me the meeting was supposed to be 30 minutes it ended up being 75 minutes the principal message back to us is we want a deal with the united states, it's not going to be easy, there are some differences between the two sides, but we want a deal. i think this week is very importa important. it's like the point guards are in town forto set it up for the

principals lighthizer and secretary mnuchin will host vice premier li hu in about two weeks. and i expect we'll have more then than we will in the next couple of days but we're on the track to having serious conversations. whether we're going to get a short-term deal or a bigger term we're going find that out. what we want to focus is on what we need to see, improvements in the u.s.-china relationship. we need china to of course deal with intellectual property theft, deal with industrial policies, concerns we have around forced technology a range of issues. and we're going to see how serious china is when they come here in october. >> but myron, just to confirm, did you say you met directly with the premier, with premier li >> i did for about 75 minutes last week and i was encouraged strong signal to us of the importance that china is placing on these talks and also encouraging us to recognize the importance that they're placing on the american business community >> in terms of where we stand

with the u.s. economy and the impact of tariffs, would you say that the impact has been less than the worst case doomsday scenario predictions >> well, we've been clear. we view tariffs as a tax on american consumers, farmers and manufacturers. but we also are clear that china has some obligations to address the unfair trade practices that the administration has been seeking from the beginning to address. we are fully in support of what president trump and his team is trying to do there the question is how to get a good result for the united states and for the business community and for the people of our country. and that's where more work is needed there are differences between the two sides. we know that when the talks failed in late april. >> so there was a quote today that spooked the market. i don't know if you saw it from michael pillsbury who has been praised by president trump, is said to be an adviser on trade. saying tariffs on chinese goods could go to 50% or 100%.

if china does not make a deal. what would happen to the u.s. economy then >> well, chb an escalation is in no one's interest. we've got to get away from the tit for tat because if the united states escalates things that's going hurt us here but also china will respond. what we want to do is find calmer waters. we want the two sides to get back to the table in a serious way. as i said, this week is about the staff preparing for the principals to meet later in early october and ultimately the two presidents are going to have to make political decisions about getting a deal done. can we get it done absolutely is there still a lot of gap between the two sides? yes. but they can be overcome if the political will is there. let's not forget, though, this is in the background of some positive news on trade we know the usmca is moving in the right direction. we know speaker pelosi, the president of the united states, and ambassador lighthizer are having productive conversations. we have confidence we can see that happening we know a small deal on china --

sorry, on india and japan are going to happen probably next week so there is some good news on the trade front. but bottom line is we've got to see progress in the u.s.-china relationship this is what the world's paying attention to and we've got to make sure that the two sides come to the table prepared to really seriously negotiate and get a deal done that's going to serve to bring stability and certainty to the business community >> is that the best case scenario now just stability and certainty as opposed to the full-scale deal that might have included things like intellectual property protection >> wilfred, we've got to keep our eye on the prize a short-term down payment confidence building measures, they're probably necessary right now. this is where we're talking about ag and other issues. but ultimately we've got to keep our focus on the prize the big prize is getting a big deal with deal with all those issues if we don't get those issues done we're going to continue to have enormous friction in our relationship and uncertainty

so ultimately what we need is a big deal and i hope we can get it done. can we get it done in the next month or two sure but that requires the two sides to come to the table, make some compromises, deescalate tensions, no more tariff hikes, and of course china has to deal with some issues that are very difficult but they know what those issues are and they're got to make some improvements in their offers >> would you be supportive of the president if he does do a zeal with china, then going after europe and some of its protectionist instincts or japan, other countries he's called out for economic warfare that he sees through the trade deficits and other kind of tariff measures that they put in place? >> well, i've been at this a long time, and i have said at the outset we would have been better off working with our allies, working with europe and japan, who by the way share a lot of our concern when it comes to china of course we also have issues with japan and europe. issues in europe with regulatory ways that they do business that make it difficult for our

companies. but we should be addressing that -- >> that's what i'm talking about. >> i know you are. i think we should be addressing that in aconstructive way. but again putting tariffs on autos or something like that that would put damage on our economy, hurt our economy. and i think we have to be very careful about escalating with europe or japan. the good news on japan is i think we're going to have a deal next week when president trump and prime minister abe meet in new york i think it won't be the big deal that we want but it's a step if the right direction. now the question is do we get to the other issues that have to be addressed in the bilateral relationship and we'll see. >> myron, thanks for joining us. >> thank you still ahead here on "closing bell," we're talking about the future of fake meat and whether these products are healthier than real meat when we're joined by the ceo of impossible foods plus we'll break down the charts with you under the closely watched economic indicator, one closely watched economic indicator, that is, starting to flash warning signs to the market.

let's go back to mike san foali for the final dashboard of the day. we have no idea what your theme

is >> it's pretty obscure, very nerdy. i will say that today's date is 9-19-19. the number 19 might have something to do with a lot of these. by kind of intentionally impenetrable 19 is a very prime number. we're going to look at a very key economic indicator that was reported this morning. an update on leading economic indicators out of the conference board. it more or less confirmed the story that the economy remains operating in a very firm way right now. you see theshaded areas are recessions and pretty much the pattern is this has rolled over off of a peak before recession. unless something is different happening right now, this would probably need to kind of fall pretty soon if you think the recession is on the way through the early part of next year. this is one of those confirming indicators we've essentially not had anything of this nature, these long look cyclical indicators like unemployment claims

reported this morning that have told you that really the sand is almost out of the hourglass for this cycle, guyss the theme? >> well, the acts of self-determination, of course 1919 after world war i is when all those treaties were written. "hey nineteen" is a steely dan song and that is a lyric from the steely dan song "hey nineteen." 19th nervous breakdown i thought that would be a giveaway rolling stones song. and of course prime numbers. >> there is no giveaway. >> that was so brilliant it's impressive. >> it was convoluted let's put it that way. >> mike, as always, thank you. >> up next, don't miss a first on cnbc interview with the ceo of impossible foods and his company's move to get into grocery orstes and its strategy to win the fake meat war with beyond meat. ♪

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♪ liberty. liberty. liberty. liberty. ♪ ♪ time to get a cnbc news update with sue herera hi again, sue. >> hello again, sara hello, everyone. here's what's happening at this hour reverend al sharpton and the mother of eric garner appearing before the house judiciary committee today. the two joined a panel to

discuss police misconduct and how it can be reformed gwen carr spoke out on her son's death. >> the entire family is traumatized. each and every time we enter the courtroom or watch the officer responsible for my son's death get a pay raise. or hear the department of justice saying they're not going to seek charges. more than 1,000 people in the houston area were rescued because of rising waters caused by the remnants of tropical depression imelda. heavy rains from the storm have flooded streets and homes. hundreds of flights have also been canceled or delayed at george bush intercontinental airport. and this is probably the shocking story of the day. an extensive study of hundreds of bird species across decades' worth of data show that their numbers have dropped by 3 billion since 1970 that is a 30% decline.

and that steep drop stunned the researchers. you are up to date that's the news update, this hour guys, a number of reasons for that part of that is environmental, global warming, the use of pesticides, things like that >> i was thinking it might be high given the enormous absolute number >> i was surprised by it, but yeah, 30%. >> sue, as always, thank you very much. >> got it. >> impossible foods announcing its grocery store debut at gelson's today it will be available at all 27 outlets in southern california with plans to announce additional retailers later this month. did i say that right is it soft g or hard g gelson's >> i think that's right. >> joining us now in a first on cnbc interview is impossible foods ceo patrick brown. impossible foods is also ranked number 27 on cnbc's 2019 disruptive 50 list patrick, good afternoon. thanks for joining us. >> thanks for inviting me, wilfred. >> tell me how big this could be

for the company in terms of retail versus being in restaurants. is it going to be bigger in the next couple of years than what you sell to restaurants? >> well, we're currently in about 17,000 restaurants that's growing rapidly and we expect our sales in retail to really skyrocket once we start expanding and it's more than just a little baby step in our history because this is the first time that consumers will actually be able to have the experience of cooking with our product, which is categorically different from just being handed a burger or a spaghetti bolognese or something like that by a server. because our product is really the first plant-based product ever that entirely recapitulates all the magic of meat in the

kitchen, the explosion of flavor and aroma when you cook it, and that whole experience that's never been done with a plant-based product before it's going to be mind-blowing for consumers. >> so your competitor beyond meat has already been in the grocery store and retail's a big part of its business how tough is the competition between the two of you to get into various retailers and fast food restaurants at this point >> at this point it's not even really a factor. we have more demand -- we're just racing to keep up with the demand and the only competition we care about has always been the incumbent animal-based meat industry at this point more than 99% of all the meat sold in the u.s. and the world is made from animals. so that's where the real competition is that's the only competition we focus on >> patrick, we've been having a

debate with some analysts both today and in past weeks about whether or not your products are good for the environment as opposed to specifically good for the consumer, that they're not perhaps that much of a health improvement to real meat, albeit they are much better for the environment. where do you stand on that >> well, we've always had a policy that we're never going to release a product that we don't believe is better from a health, nutrition standpoint for the consumer than what it replaces so as you said, there's absolutely no question about it being better for the environment. but we also believe in many ways it's better for consumers. first of all, it's produced without the use of antibiotics with all the hazards of antibiotic resistance, associated with that it doesn't involve the kind of really bad environment of a slaughterhouse that causes meat to be sort of a sketchy product

from a public health standpoint. but from a consumer health standpoint what's important is it has zero cholesterol and lower saturated fat, lower calories, but all the protein and all the iron and all the micronutrients that they would get from meat made from a cow. so we wouldn't be selling the product if we didn't believe that it is better for the consumer than what it replaces >> patrick, the way you describe how your product kind of mimics meat once it's heated and cooked, it brings up the question of exactly how difficult the science and engineering is and how proprietary your product is. i think this gets to one of the debates we have around here about just exactly what the barriers to entry are and what you actually own in the way of intellectual property in these formulations >> oh, well -- yeah, so the way we approached the problem really no food company had ever done this before. we were not interested in making

a veggie burger. we were interested in cracking the code in molecular terms, cracking the code of meat flavor and sensory experience and we built an r&d team you no, in our first year we basically had an r&d team and a couple of business people. 100 people on the r&d team and a couple of business people. we now have more than 120 people on our research team and when we started, we believed that the most important scientific question in the world, and i've been a scientist my whole life and just came to this realization that by far the most important scientific question in the world is what makes meat delicious because if you can figure out in molecular terms what makes meat delicious and how you can deliver that, not just fake it but deliver that actual experience using sustainable plant ingredients and ingredients produced by fermentation, you can replace the most destructive technology in the history of the world that

left to its own devices is pushing us toward a climate catastrophe. you were just talking about bird populations melting down the reason that we're in the late stages of biodiversity meltdown right now is that the worst invasive species in history are the animals we raised for food. and expanding their populations comes at the expense of irreplaceable ecosystems and biodiversity there's ten times more biomass of cows on earth than every remaining wild mammal, bird, reptile and amphibian living on land ten times more mass of cows. it's that competition that's causing this meltdown biodiversity it's causing the 60% drop in the total numbers of wild mammals, birds, reptiles, amphibians, and fish that in the past 40 years that's been reported by the world wildlife fund. almost entirely due to our use of animals for food. >> so two demand questions from me in the interest of time,

patrick. one, how's the rollout from burger king going? what are you seeing from consumers? and also how do you estimate the size of how big this market can be >> oh, easy. first of all, the burger king rollout is going great it's been hugely successful for them they are incredibly invested in this and it's been great for us it's selling extremely well in 7,800 restaurants. and you know, it's just been total success. how big do i expect the demand to be? right now the global market for food you make from animals is worth $1.7 trillion and in ten years $3 trillion. we're going after the whole thing. our mission is to completely replace animals as a food technology in the global food system by developing better technology that not only is vastly more sustainable and healthier for the consumer but

actually more delicious. and we can do it because unlike the cow we're innovating every single day and we already have a product that many critics have said is better than the cow version and we're not stopping there every single day we're making even better still. >> i'm not sure if all people agree it's better than the meat. sow might have a tough task to hand there but patrick, just wanted to ask if you've been watching beyond meat's rise in the stock market and whether that's making you excited at the prospect of your own ipo. >> well, we're not actually at all thinking about an ipo at this point we're just focused on pursuing our mission, getting the job done, and we don't want to get distracted by that as long as we've got great long-term investors who are willing to support us but i think the success that beyond meat has had is extremely

important symbol it shows that the world is recognizing that this is coming, that the -- i would say at this point that impossible foods has sort of cracked the code for meat in 20 years we're going to look back and basically say, well, remember back in the day when we used to use animals to make meat because people wonder how big the plant-based meat industry is going to be. it will be the meat industry in 20 years >> so beyond meat's cracked the code as well, then you're accepting >> well, you're asking about i.p. so we have some proprietary i.p. we have particularly one thing which is we discovered the catalyst that is pretty much entirely responsible for the unique flavor and aroma chemistry of meat that's responsible for this explosion of flavor and aroma that happens when you cook meat the bloody taste of raw meat and all the meaty flavors and aromas that you get when you cook it is due to a particular catalyst

called heme. we discovered this we have patents on it globally and i think that that puts us in the unique position to be able to make the most delicious meats in the world >> fake meats in the world >> thank you very much >> it will soon be -- we'll look back on the meat that's being consumed today and say oh, that's old meat. and the new meat will just be called meat. >> it won't be alt meat. got it >> it will be meat >> patrick brown is the ceo of impossible burger -- impossible foods. thank you. still ahead, amazon ceo jeff vinms discussing his country's enroental impact, speaking of details when "closing bell" comes right back interesting clock.

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amazon's ceo jeff bezos unveiling a sweeping new climate pledge today in washington committing the commerce giant to have net zero carbon emissions by 2030 and calling on others to sign on to the pledge. part of amazon's plan includes purchasing 100,000 electric delivery vans from rivian the

largest order for ev delivery vehicles ever. bezos taking questions today at the national press club in d.c. responded to criticism that amazon's same-day delivery may negatively impact the environment. >> it actually turns out that as you increase the speed of delivery you have less carbon that is counterintuitive but the reason is that once you get to sort of one-day and same-day you can't really do it by air transportation anymore you have to inventory and warehouse the products very close to the customer. and the result of building those fulfillment centers very close to the customer, you're actually transporting the products in a very efficient way, a very short distance >> bezos was also asked whether aws, ams ons cloud computing service, would stop working with oil and gas companies as a result of this new pledge. >> no. we're going to work hard for

energy companies and in our view we're going to work very hard to make sure that as they transition that they have the best tools possible to ask oil and energy companies to do this transition with bad tools is not a good idea and we won't do that. >> it's an amazing pledge overall. and the size of the ev order is a testament to how much they're committing to trying to hit that target i do just wonder, though, as he explained there, whether it was the chicken and egg of what came first, that the achievability of this target only comes down to a strategic decision to increase next-day delivery and have that kind of fulfillment centers closer to the source >> their employees have also been pushing -- >> it wasn't the other way around and exactly. i think a lot of it has to do with the employees and embracing a sense of mission for the overall company. obviously he's also somebody who likes to project ahead many years and try to position the company for long-term success and not just what's expedient right now. so i think that fits together. but it's a good point, wilf.

he says it's counterintuitive that same-day delivery is less energy intensive than flying all over well, bringing things in bulk to stores is actually just as energy efficient arguably because people drive the short distance themselves. >> the other thing in terms of the long-term distance of the overall target i agree with you, but actually in terms of the energy use coming from renewable sources it's 40% now that expects to double by 2024 100% by the full target 2030 so that's quite an impressive pickup in quite a short space of time >> i wonder if it puts more of a target on his back remember president trump famously pulled the u.s. out of the paris climate accord in 2017 -- >> and he's trying to prevent california from enforcing their own epa standards with automobiles. >> flashy kind of announcement there. >> but net net if you look at the political targets that they're facing in some of the anti-competitive, this helps them probably in terms of general pr, goodwill versus -- >> for sure. i just wonder if he's going to

get a tweet. anyway, up next, the boeing saga rolls on the faa chief speaking out on what needs to happen before he certifies the boeing 737 max to tu te skies. we'll have the details straight ahead. great presentation, tim. could you email me the part about geico making it easy to switch and save hundreds? oh yeah, sure. um. you don't know my name, do you? (laughs nervously) of course i know your name. i just get you mixed up with the other guy.

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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. the head of the faa visiting boeing today to check on the status of the grounded 737 max phil lebeau has the details. phil, this isn't an ordinary faa visit. what happened? >> not at all. not at all he'll be talking with the flight engineers as well as boeing

executives out at the commercial airplane division out in the puget sound area when stephen dixon is there today he's also at some point going to get in the simulator himself. he's going to see, because he is certified to fly the 737, he's going to see what these fixes f the max are doing and whether or not perhaps he will get early indication, is it realistic to think the max returns in the judge. there are several more steps to complete before krert attention including stephen dixon piloting the plane on a short flight not just on the simulator but taking it out for the short flight and bringing in the question whether or not the time table for the return of this plane which stephen dixon says i don't have one, whether or not it will be returning to service by the end of the year. today ryan air ceo michael o'leary wilf you know this guy he is hat at no shortage of words pfrp like at sthars of ryan air he said today, i'm not going to see it until march or april.

march or april remember, it's not just the fa a has to krert this. it's also other regulatory agencies >> he huss also had reason to disappointed theed shareholders voeft are voted against the massive pay package in the last 24 hours but the faa story, phil, is there an element of dicken snn don't worry we won't approve if until i fly it myself. a little bit gimgy concerning surely the approval process be accurate when approved and you don't need the extra promise. >> well, i don't think he does it to be a gimmick i don't think a employ to be look at me i'm flying the plane. look, he is a certified pilot. he is certified not only in the 737 but other airplanes as well. he has 35 or 40 years experience as a pilot i think from his perspective he wants to get a sense of when bogey says we believe this will be the right solution for all

pilots not just in the u.s. about are but around the world i think he wants a personal perspective on that. >> okay. phil, thank you as always. phil lebeau. >> you bet. >> the new iphone hits shelves tomorrow we have the details on what you need to know come up servicenow put our workflows in the cloud. this changes everything. you're right sir... everything. no not everything, i mean you're still blatantly sucking up to me gary. brilliantly observed, sir. always three steps ahead. six steps ahead. sixteen. so many steps.

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economy. squawk on the street 10:00 a.m. eastern. welcome become apple set to be the big focus tomorrow as the new iphone and apple watches hit stores josh lipton with a preview. >> wilf all eyes on apple, the new iphones hitting the shelves tomorrow the new iphone 11 model remember could come with faster chips, longer lasting battery, better cameras. the company says the toughest glass in a smartphone not just a iphone but smartphone. of course it's not just iphones. the new wind chills also hitting stores starting at $399. importantly remember apple cut the cost of series three watch to $199. even as the iphone franchise has been under pressure wearable has been a bright spot for the company. to date now selling an estimated 80 million watches back to you. >> josh wsh thank you. another thing to watch tomorrow we have the exclusive interview with federal reserve

vice chairman richard collareda. 10:00 a.m. eastern on cnbc post fed lots to talk about. >> roouls always. >> and he is always open in the interviews you got a lot out of him in the past. >> he is straightforward he knows the markets he came from being an adviser from pimco and knows the academic side as well. and a keen eye on global economies which i think is really huge right now for the fed which is how much of that data dependence they are following the next move is going to come from overseas and the trade wars. >> also you were mentioning the other interview. >> of course kristine lagarde is monday mentioning. >> i'm looking forward to that mike back to the markets wh what the fed chair says. >> it's a crucial factor all else equal flattening action in the yield curve yesterday. but right now i think the market is comfortable with the idea that the fed is likely to cut

rates again unless the economy observably gets better that's an ee gas station equation we can live with for now. >> where where is the catalyst coming from. >> that's the other question it seems to be running out of steam. i would say it's broad enough and credit has been good it's hard to see how it falls apart with microsoft and jp morgan at all time highs >> "fast money" begins right now. live from the nasdaq market site overlooking new york city times square this is "fast money. melissa lee. trard are sim seymour. steveias o and dan nathan and guy adami from our own delivering alpha conference. billionaire investor says she is short grub hub the desk debates then tesla's model three wins a top safety rating after the crash score but is now a safe time to get into the stock the traders take the wheel on this microsoft breaking out its growth, maybe value whatever it

is i