swept up in this value good dividend. strong growth rate high quality company that if we get any issue with trade. >> tlt, i think the rally has moved far. >> lkq >> i like all of you thank you very much. quality show that does it for us. thank you very much. welcome to "the exchange." the president speaking at the new york economic club right now talking up the economy under his administration the record highs in the stock market and the nation's low unemployment rate among other things the president addressing trade saying that china deal, phase one could happen soon. he said they are dieing for a deal we will decide trump also stressing that we don't have reciprocal deals with a lot of countries, not just china. he took time to criticize the

fed for raising interest rates too soon, too often, keeping them too high and said they are capping gains in the economy and putting at a competitive disadvantage to other countries. let's get straight to it margie and joe and ben and amen. amen, you have been on the scene. it has been a tour of the economic waterfront, i would say, under the trump administration sort of sparing no opportunity to criticize prior administrations, not just mr. obama, but others for trade deals that he considers il ill-advised, for climate control deals and so forth sum it up for us >> yeah. the president here skewering a hold of his political enemies. on china, a lot of market participants watching to see if

he will give specifics the president still talking now, but so far nothing specific other than saying, as you pointed out, we're close on a trade deal something could happen and it could happen soon, the president said not providing any specific dates on that. as far as the federal reserve, the president made an explicit call here for negative interest rates saying ultimately that he is frustrated the federal reserve won't go that far. here is what he said earlier >> we are actively competing with nations who openly cut interest rates so that now many are actually getting paid when they pay off their loan. known as negative interest whoever heard of such a thing? give me some of that give me some of that money i want some of that money. our federal reserve doesn't let us do it >> the president saying, give me some of that money to the federal reserve. also skewering nancy pill to el,

democrats, they don't know what they're doing. tougher on the federal reserve than the government in beijing, saying he doesn't blame china for the situation in terms of trade. he blames previous american presidents critical of the obama administration and others, as you point out. we will monitor the president. we're expecting that he is going to take questions here from the audience in a written format we will monitor that and brings it. >> lots of meat on the bone. let me turn to you, joe. let's pick up where amen left off on the question of negative interest rates the president seemingly calling for something that would have been unthinkable years ago what do you think? would negative interest rates have helped this economy would it have helped the stock market >> i'm not sure. the answer is i don't know certainly -- it's possible the fed raised rates too much. i made that point for some time. they raised rates significantly relative to the rest of the

world. the balance sheet had a 40 billion per month roll-off until this past summer they over tightened for sure i don't know if negative rates would have helped. the economy is better because the fed has been more aggressive in easing policy i hope they don't make a mistake, because my guess is growth is going to be better next year. i worry about the fed making another policy mistake by perhaps talking hawkish. i think the president was trying to get in front of the potential change of rhetoric if the economy does well. >> the economy by many measures has been doing extraordinarily well in terms of employment, job growth very solid, incomes the president had numbers there. we have to fact check some of the numbers because he adds them up in ways that are a little bit unconventi unconventional winners can do that. he is on a winning roll with respect to the economy let's go to joe's point about interest rates

it does seem to me to be richly ironic that many of the same people who criticized the fed for keeping rates too low and were cheering on rate hikes are now those who are saying under obama -- those who are saying, they raised those rates. >> it's a little bit ironic and hypocritical it's also, if you have an unprecedented economic boom, the best in our history, which he said we have and we don't. we have grown faster at many different times. we're growing 2% job growth is solid but slowing. if all those things were true, your claims about the economy booming are true, then why would you be calling on the fed to do emergency interest rate policy as if you were an economy falling off the cliff? look at negative interest rate policies other places where they have been put into affect, haven't been that great. they are indicative of bad economies, not good economies. it's odd to see him say on one hand, we're greatest economy ever, the other, the fed needs

to make emergency moves or we're in trouble he made claims about growth that don't hold up. >> he said among other things that the interest rate level today puts us at a competitive disadvantage, our trade deals put us at a competitive disadvantage talk to me about that, particularly the interest rate question. >> i think most analysts think we should have another quarter point cut in short-term interest rates. i think the best thing that's happen happened, the most positive reason is the fed seems to have adopted a new course when they realized how much damage their aggressive tightening was. by being passive, not being proactive in raising rates, that says there's no reason why the economy shouldn't continue to advance. just a secular increase in growth for the foreseeable future. >> we're growing right now, joe, at what, 2%? >> 2%. there's a good chance we

accelerate i love what i'm seeing on the productive side? >> to what >> 3%. 3% is possible markets not positioned for it. that would be a great story next year, growth accelerates because it's not as late as people think. >> let me turn to you, margie. the president made the point, we're not paying tariffs, the chinese are. agree? disagree >> i think he has a valid point. consumers always have a choice if prices go up because of tariffs. they have the flexibility not to buy those goods and buy other goods. i think the tariffs will be a positive for us because it will add american workers back here in the u.s >> we will leave it there. ben, joe, margie, thank you so much boeing shares are on the move again today with october delivery numbers out the faa administrator speaking in washington right now. let's get to all of it with phil who is live in chicago

>> we're watching the speech from steve dixon in washington, if he makes news, any specific comments about boeing, we will bring those to you let's talk about orders and delivery numbers that boeing reported what people are interested in is what kind of fallout, if there is any for the 737 max as they see the plane grounded for seven straight months. in october, there were 18 cancellations, orders that were on the book that have been transitioned to other aircraft in the boeing catalog. the backlog for the max is just over 4,400 planes. if you compare that to a year ago, that is down about 133 planes a reminder that they are building 42 737 maxes per mon p. they plan to ramp that up. 57 per month by the end of the year those 300 or so planes that have been built but not delivered, that's part of the 4,400 backlog. they did deliver 20 commercial jets last month.

in terms of commercial deliveries -- this is where we see it in the cash flow -- deliveries, commercial jet deliveries this year, because they haven't been able to deliver the max, down 49% year to date. >> they would claim that they're going to recoup much that was in 2020 and beyond. >> absolutely. we don't know exactly what the pricing is going to be on those planes clearly, they will be paying out some money to these airlines because they have been unable to use these planes as originally planned. >> as we were talking, you would have to expect that some of the rar airlines are going to want to redo negotiation over price because this is, let's just say -- if not a damaged good, one that has a questionable pedigree >> right boeing has taken some charges in their last two earnings reports, money that they have said, we expect it's going to cost us -- i thought the last quarter or two quarters ago, it was $5.6 billion. something on that order. we don't know what the total

bill is going to be. there's no doubt that their customers are going to come to them and they're going to say, you are going to recoup us for the fact that we haven't had these planes when we he pictu expected to have them and that cast us in terms of not having the schedule we planned. >> phil, thank you very much the president speaking about trade at the new york economic club >> there's a growing consensus that the trade war has a cost and is weighing on our economic growth and capital spending. as you know, capital spending in the united states last year was up 10% this year, it's flat while you mentioned in your speech significant progress that has been made on several fronts, a number of industrial sectors have recently been hurt. manufacturing, automotive and oil. what are your plans to address these economic headwinds >> thank you they haven't been hurt they were totally down now they are a little bit down

because a little bit perhaps the uncertainty of trade wars. there's no uncertainty we're the bank that everybody wants to take from we're the source that everybody needs and everybody wants all over the world the real cost, john, would be if we did nothing the cost of doing nothing was killing us as a country. our national debt and so many other things, but it was killing us when you say, let's just -- because perhaps this is an assumption based on the question let's keep it the way it is with china. that would be the real cost. we can't do that one of the things i was able to do with china as an example, we have taken in -- we will be up to $100 billion in tariffs you haven't seen inflation you haven't seen in many cases price increases. our farmers, because i have a very good relationship with our farmers, our great american farmers, i call them patriots, they were hurt very badly by

ch china because they were my vote. the middle of the country. it's a beautiful thing to say. they targeted them i said to our secretary of agriculture, how much is it? he said, the year before last it was 12 billion this year it's 16 billion in orders i said, that's okay, we're going to give them 28 billion. we're going to take it out of the tariffs. hopefully, the farmers will say, thank you very much, china we spread, distributed two years, $28 billion around to china, around from china into our farmers and farms and ranchers and all of the people that were targeted i would say in a rough manner by china, i would say in a very rough manner now china is coming back and as you know, they are starting big buys, very big buys. the farmers are very happy the incredible thing with the farmers is they don't want a subsidy. they don't want a handout.

in this case, i thought it was something that i wanted to do. i was able do it $28 billion. after that, billions left over that we could use actually for tax reduction. we could distribute it to people if we don't make a deal with china -- i had a deal. we had a deal. this gentleman can tell you, we were so close to a deal. the hard points were negotiated, opening up china, intellectual property, tremendous penalty much then we get a call, seven months ago, we get a call they would like to see us we saw them. they explained why they can't do three or four things that we were agreed to i said, okay i'm in the real estate business in new york. i've heard that before sadly. it wasn't like, i'm so shocked i was a little surprised it's china they're not supposed to do that. but they did i will tell you what i bet they wished they didn't do it i put on 25% tariffs on everything coming in

on the first $250 billion of product. it's going to 15% very soon. i tell this to larry i tell it to everybody if we don't make a deal, we're going to substantially raise those tariffs. they will be raised substantially. that's going to be true for other countries that mistreat us we have been mistreated by so many countries, it's hard to believe. there are a few that haven't mistreated us. i can't blame them if you can get away with it this is why i blame our past leadership i don't know how it has gotten this way we will have a trade deficit of over the last -- long period of time, close to $800 billion. whoever heard of this? $800 billion of trade deficit. supposed to be the other way around we're changing it rapidly. it takes a while you have statutory constraint. you have in some cases, take it to one phase and then you have to by law make six months before you can go to face two and three and four

we made a tremendous amount of progress we are respected on many fronts. we rebuilt our military, which is very important. we can all talk about trade. we can all talk about judges we can talk about everything we're doing. if we don't have a military in this world today, you saw what we did al baghdadi last week we have the greatest military force on earth it was depleted when i took over we have to spend money on the military, otherwise, it's wonderful to have budgets, but if we don't rebuild our military -- we have rebuilt it >> the president riffing on the rebuild of the military under his watch. answering, at first, a question about slower capital spending and a bit of a falloff in manufacturing. he batted that question away by saying that manufacturing was much worse off under previous administrations and was dieing and that relatively speaking is in a better state than it is today in part because of the policies on trade and elsewhere

that in his view have helped strengthen the manufacturing sector and the agricultural sector in his view with respect to china and some of the payouts, $28 billion that have been made to farmers let's look at what's next. >> coming up, here comes disney. >> to infinity and beyond. >> two years after announcing it would jump into the streaming world, disney plus finally goes live not without some hiccups rockwell automation raises guidance the ceo joins with us a look at where the strength is around the world and where the economy is looking weak google may be collecting medical records of millions of americans without their knowledge. >> this is "the exchange" on cnbc (soft music)

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welcome back to "the exchange." disney's streaming service has launched since the ceo announced it will be $7 a month, the stock has jumped almost 19%. netflix has tumbled by nearly 20%. don't count out netflix. netflix still outperforms disney since jumping into the streaming war disney announced two years ago.

joining us is the senior equity analyst and our own juliewel jua >> it seems like it's going really well. this morning, when the service went live at around 6:00 a.m. eastern, we saw there were 7,000 different complaints that the service was not loading properly or streaming well. disney came out with a statement saying that they apologize for any hiccups and they fixed things they apologized people are unable to connect. disney was prepared for a lot of people, but it sounds like the demand was even bigger than they could have anticipated >> one could say, bernie, maybe they had a problem that was born of riches. >> that's what we think.

that's why they spent billions of dollars on band tech so this wouldn't happen. either way, it seems to be demand driven. >> what do you think of this service overall and its ability to drive revenue and profit for disney how helpful is it? >> we're bullish on the service. that's because of the content. the disney library number two, the price, $6.99 verizon giving it away for free. we think it will ramp quickly and hit their guide by 2024. >> julia, what leaps out to me among other things -- we talked about this before -- is how disney is brilliant at finding ways to play off the flywheel of their core business. i think of the two streaming services that many, many families will want, one is disney plus because of the kid

content and other content, and the other is the espn plus. >> also to mention hulu. today is a very important day for disney not just because of the launch of disney plus but because of the new bundle they are offering of disney plus, which does not have ads with hulu with ads with espn plus with ads they offer it for $13. that's a $5 discount if you bought them individually they talked about the potential digital advertising market and hulu is how they will chase that digital ad market. their hulu growth has slowed they added half a million new paying subscribers this past quarter. that's down from adding 5 million paying subscribers in the first half of the year they want to keep growing hulu and offering it as part of the bundle as a key way to do that. >> bernie, it occurs to me that there are so many streaming

options out there. i'm getting confused i don't know how many we need. is there a risk of saturation here five years from now, are we going to talk about two winners, three winners? >> i absolutely think that's the case i think we're going to have two, three winners. it's disney plus and netflix netflix at 60 million subscri subscribers in the u.s disney will ramp up towards that over time. we think the main cause is it's going to drive core cutting. we have seen core cutting accelerate we think it's going to accelerate more into 2020. then it will be interesting to see what our traditional networks do. discovery said they were going to explore a more robust direct to consumer product to get that reach. that would be the positive the potential offset is how does that impact with distributors with the traditional networks? >> let me wrap it up i want to come back to julia

you have a buy on disney at 170 price target it's in the -- >> 139 right now >> netflix, you have a hold with a price target of 265. >> exactly disney plus not fully factors into the stock global subscriber priced in. >> to you, julia, bernie mentioned that others are going to come in here, too, including nbc universal and comcast with streaming services of their own. >> peacock net week. that's an ad-supported service that's competing with hulu see disney go after the subscriber dollars in line with hbo and netflix. and you have peacock >> choices, choices, choices thank you very much. >> thank you kate has the the story >> just hearing from facebook. they are consolidating their

payments under one roof. they call it a completely new brand facebook pay it's a push into payments. it's building out payments for whatsapp and facebook messenger which don't have full scale payment methods until today. it's a continuation of putting all the brands under one roof. they are partnering with stripe. facebook is still supporting credit cards and pay ppal. this adds pressure to payment competitors. paypal have been under pressure after this news. >> thank you very much here is what else is coming up on "the exchange. >> ahead, smile direct set to announce results after the bell. will they give investors something to smile about more bad news for juul google may be collecting lots of

medical data medical data chipotle says, don't worry we found more core narne asada not even by a run-away donut. we powered through it in our toyota prius. because a star's got to shine, no matter what. it's unbelievable what you can do in the prius. toyota let's go places. robinwithout the commission fees. so, you can start investing today wherever you are -

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stories that should be on your radar. welcome to all three of you. topic number one, shares of smile direct club lower ahead of its first ever quarterly report after the bell today been a rough go for the teeth straightening startup. shares down nearly 50% since the debut in september major headwinds including litigation in multiple states. an important one, which would be a lack of profitability. golly. >> one of those cash burning unicorns first report as a public company. i can see the appeal of the direct to consumer model for n dentist dentistry. i have braces. i took them out before because i have a lisp. some of my teeth have shifted. i'm using invisalign i hate going to the dentist two

to four weeks to get my new retainer, it's necessary because this is a medical process. that's been one of the big pain points for the company. >> that's for me the pain point for this company you need medical doctors administering -- it's a personal line it relies on the patient itself at home sometimes doing their own impressions, sending that in they send back the aligners. you rarely ever, if ever see a doctor >> how do you know whether the impression and the fit is actually correct >> i couldn't make my own molded ear piece here i did it the wrong way wouldn't mess with my teeth. wall street has buy ratings. they believe it's going to be profitable by 2020 even though it has this lawsuit, concerns about it not working as well, we're questioning the model. wall street seems to be upbeat. >> how many were -- >> can we take a picture of

those things with those purple trays? wear one of those. >> you make the mold >> i was thinking about doing what you are doing >> they send that to the patient at home. they do their own mold then they send it back. >> a lot could go wrong. >> most of the time, it will be right. but there are type times -- >> let's the grins begin juul, speaking of companies that have not had a good stretch, confirming plans to slash nearly a billion dollars in costs next year, including 16% of the workforce. the company is cutting marketing spend as it shifts to advertising directly to smokers. it comes less than a week after they halted sales of mint flavor amid growing pressure from regulators this is a business that's taking a full frontal attack from governments state, federal,

local. >> well they should. the former fda commissioner was on cnbc yesterday saying maybe they should pull all products of juul from shelves, which for me is so disingenuous on his part because i believe and i said this many times here, the fda should have been regulating these things before they ever hit the shelves. they let them get out there. >> early was the time do it. >> they said, send us your product. >> early on, there was thinking, correct me if i'm wrong, that these products were so demonstrably -- >> smoking cessation it's not worked out that way it should have been regulated to begin with >> they often said, if you are not a smoker, don't start using juul all of these kids flocked to it. the mint flavor makes up 70% of sales. i'm curious to see what they look like one year from now. they are moving their targeted advertising to smokers

can they really sustain? >> we did a story last night on "nightly business report." we interviewed a few people who own smoke shops in new york city that sell these juul products. they said new york city's shops have seen an 80% decline in their business at this point they are going to go out of business if nothing happens seen. >> my older son worked in this industry selling vaping equipment to smoke shops those companies in southern california were just crushed layoff and layoff and layoff. >> it shows you there's an ecosystem here at play it's not just juul but third party suppliers and customers that have profited off of the rise of the industry and the fall >> move on to chipotle shares are higher today after announcing it is extending its carne asada menu through the first quarter. >> what? >> carne asada menu.

the company warned its supply could run out. now it looks like it could end up on the menu for good. kate, you have been following the carne asada beat. >> that's right. chipotle warned they had this killer quarter, knocked it out of the park. they talked about carne asada, they said we could run out of supply i hope we can extend the season. it looks like they have. they source responsibly raised beef >> what is carne asada >> it is a higher, more premium cut of beef. it's not cut up into chunks. >> it's marinated. >> i will say, a smart move on behalf of the company was doing this as a digital first initiative they did the same thing with the lifestyle bowls earlier. it pushes traffic to order digitally. digital sales were up nearly 88% in q3, representing nearly 20%

of their overall sales for the company. it's been a really smart marketing move. >> digital is the transformer. quick food. >> i've been saying, it's not what you said, it's how you sell >> bang. >> i think they need to be careful with this carne asada trend because let's remember what happened with mcdonald's and the mcrib sandwich they brought it out on a limited basis each year. they said, if it's this popular, we should do it all the time not only did sales drop, but then they couldn't source it enough they had to stop sales all together. >> can i bring this back to the stock? talk about a comeback story. chipotle traded at $250 a share in february of 2018 after all those food-borne illness concerns new management, new digital innovation on their food menu. now it's around $760 a share there's only one other stock that has performed better. that is amd. this has been a hot stock to watch. >> this was a stock flat on its

carne asada. >> it's a turnaround >> let's move on finally, snap unveiling the spectacle 3 smart glasses. 3d cameras and augmented reality. because real reality isn't good enough we have aprice tag of nearly $400 these aren't your average specs. the third time -- looking good. >> are you selling pencils >> $40 million loss on the first iteration. >> these are the spectacles 3. the big difference is the price, $380 they can record 3d content as you walk about, you can record the environment around you. overlay special affects on top. >> how nice. >> the thing is most people are going to be like, i don't care it's not something you and i would buy. me too it's for influencers that's what snapchat -- >> influencers >> that's their way of saying -- i'm going to take these off.

>> re-rack that. >> you can create cool affects >> much better on you. >> goes with the invisalign. >> you have to look cool to start. the plan is, we want to get to a point where augmented reality, you overlay maps or messages or other things information through the glasses. >> what do you see >> not a lot am i supposed to be seeing anything >> no. you push the button. you record video or take pictures >> record kate >> the plan is to create augmented reality so you can see information. >> talk to us about the pricing strategy at $380, i would think this would price out its core audience, which is high school and college students. >> exactly it does price out the core audience, younger audience

they say they do have a big audience over 18 none of my friends are on snapchat i'm being recorded i read an article that apple, google, amazon, everybody is moving to smart glasses that will replace smartphones as long as they don't look like that when you add augmented reality to glasses, you can see information instead of having to pull out a phone snapchat is taking a -- >> what am i doing where i can't reach for my phone to get my data >> you are walking around new york city. you need directions back to your parked car you want to know the weather or anything like that see the data maybe most people don't need that i think an audience that grew up in front of video games -- >> see you >> it's really dark over here. >> keep talking. >> the younger audience may go for this >> i don't think the younger audience will pay $380 when you can display information on your face instead of on a phone -- >> come on

>> they look like regular glasses. >> you are saying that you have bubbles coming out of your head. >> there are reports that apple is going to launch a pair in 2022 that look more like glasses. everybody is trying to get there. this is snapchat to work with influencers to build it in the field instead of behind the scenes. >> we all became influencers >> not buying it >> thank you appreciate it. google has been amassing medical records on 50 million people without notifying patients or their doctors. the reporter who broke that story joins me coming up rockwell automation on pace for its best day in nearly ten years on the heels of stronger than expected earnings and guidance the ceo will join us tdiuso scs that next. "the exchange" will be right back

rockwell automation, the maker of industrial machinery and software soaring today after

reporting earnings up more than 11% on pace for its best day since april of 2009. they beat estimates on earnings and sales and expects fiscal sales growth of 2% to 5% in 2020 joining me is the chairman and ceo of rockwell automation welcome. we are glad to have you with us on this very singularly important day for you, best day in a decade or so. i guess you are not seeing any slowdown in the manufacturing sector are you or are you not >> we continue to see uncertainty, geopolitical uncertainty. we do see decelerating macro indicators for industrial production we did have a good quarter we're confident what we're offering to custom seers is helg them increase productivity and we can take market share. >> do you think 2020 will be a slower year than 2019 or not

>> we're guiding to flat organic growth, which would indicate a slowdown we have made investments inorganically. that's adding points of growth for us in the year clearly, the macro economic indicators are decelerating. >> what were those point u.s yo had inorganic growth >> we kicked off a joint venture called sensia aimed at increasing efficiency in oil and gas producers. we just capped off a good first month with that joint venture. we also made an acquisition of an indian integrator which helps deliver software solutions for manufacturers to get additional productivity from their existing assets. >> you sell a lot, i gather, in oil and gas is one, mining, life sciences i assume a part of your business

has to bear on the automotive business what are you seeing there? >> in automotive, we had a better than expected quarter some of that strength came from the continued rise of electric vehicle production electric vehicle drivetrain, the battery production, the motor winding in those electric vehicles is a great market for us we have had some important business there >> take us forward on that point. i'm intrigued by it. a decade from now, 20 years from now, where do you see electric vehicles or autonomous vehicles as a percentage, let's say, of global vehicle sales do you even think out that far >> we think that far all the time i would say electric vehicles, within that 20-year horizon, could easily be the majority of vehicles on the road >> really? >> we're not just talking about passenger vehicles we're talking about trucks and buses. importantly, we also think that

the move is directly to full electric so there's not as much relative interest in the hybrid vehicles as people switch from internal combustion vehicles. >> that's really fascinating you think in 20 years, electric vehicles, all told, trucks, buses, public transportation, will be more than half of global production that's fascinating >> i think it's very possible. >> thank you very much we appreciate your time today. congratulations on a very successful quarter >> thank you thank you very much. a resurgence in defense spending and commercial spare pursuits have put -- space pursuits have put huntsville, alabama, back on the map as rocket city usa. we will head to the western world's biggest rocket factory next

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florida's cape canis the most wn launch we look at huntsville's reinvigorated space industry >> reinvigorated is very much the case you can't come down here and not talk about united launch alliance this is the joint venture between boeing and lockheed martin it's been building rockets about 30 miles west of here in alabama since its creation in 2006 the ceo tells me that the huntsville area is, quote, perfect, thanks to a highly skilled work force and a supply chain grown up around the company. these are factors that matter now more than ever >> this is a record for us >> two classes of rockets, both made here in northern alabama. >> it's that busy because our launch years of next year, 2020

and 2021 are just jam packed. >> ula's rocket factory is the largest in the western world with 650 employees and some suppliers on site. >> this is the first vulcan flight panel coming through for the first vulcan rocket. >> 30 rockets are in production, including ula's big bet on the future it's the powerful next gen rocket in development for five years with plans for the first orbital flight in 2021 the first customer is robotic lander startup astrobotic tha nt the main purpose is to work if the air force. a program that will dole out nearly 300 contracts estimated at $100 million in over five years. >> we centered the design on the national security space mission. it's what we call purpose built for that space. centered on the

commercial space, the rocket would be smaller we set our sight oss on this procurement. >> is the company friend because they are supplying rocket eng e engines or foe >> they are both we have a strange term of art in our industry that we use we have that with blue origin on the engines. we also have that on the solid rocket motors that are added >> reporter: vulcan will be a significantly less expensive rocket when it comes to markets. he did decline to put numbers out there in part because of that air force competition that's under way

given the fact that ula was created back in 2006 he's seen as the space distal worth being discorrupted by spacex and some of these rockets in development now. the vehicle the company developing from the ground up and represent a very big bet >> i have to ask you how cold is it there it looks cold. >> reporter: last i checked it was 26 degrees it's sunny right now it was hailing and snowing earlier so the day is certainly looking up i think we're a little colder than you are in new jersey >> i think you are >> reporter: i'm feeling the rocket fire. >> you're feeling the heat the red coat looks great we'll have the nice cold weather here waiting for you when you get home. >> reporter: thanks. appreciate that. google had teamed up with health care provider ascension granting access to health records and not every one is fan

of the project here is what jim cramer had to say about it >> you can't do this these companies are under scrutiny for everything they do. the media hates them they do project nightingale. >> do you not believe there's b benefits in there's a lot i can do with that data. >> we'll talk to the reporter who broke the story, next. thanks for coming in. no problem.

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protect your people and your data. spy, spy, spy! they're actually very nice people. you need it orchestration by cdw and hp featuring the intel 8th generation core processor. google is sharing data with the second largest company is raising privacy concerns the project nightingale was collecting the data around 50 million patients i'm joined by the reporter who broke that story welcome, rob whose collecting -- how is this data being collected from where

and what kind of data are being collected? >> this is the last data that google doesn't have on you they know where you live, they can read your e-mail they don't have access to your hospital record and that's what they are getting in the deal they have access to any doctor or nurse has >> this is hospital records. materials that may be with my doctor that aren't in the hospital would be safe or is ascension a hostile operato hosr >> they have senior care facilities this is your health record >> is what's being done here legal? >> the applicable law here is

h hippa. it will allow health care systems to share your data with pretty much any third party that is trying to help your health. anything up the leaving it in starbucks or anyone to watch is fine for hippa >> how does this help your health what's the idea here >> so far it doesn't the idea is they will be able to have a search tool that pulls up everything about your health that any doctor or nurse or some at google can see and they can apply ai and machine learn and maybe suggest changes to your care, changes to the way they bill you you would kind up paying more and ascension could adjust staffing and say you have to do many nurses watching you sdplp wh >> what can google not do with

this data? >> they said we plan to follow the law. you wouldn't expect them to say we plan the break the law. that would be a gimme as a journalist if someone said that. i asked please tell me any personal data that google does not access to and they could not give me an answer. >> does google make money on this and is so, how? >> right now they are doing the work for free. in the future we know based on the beam thpeople they plan to l this out to a lot of other health systems google is an advertising company. it's a billboard company on the internet all the data they use on you they use to advertise. they say that's not their plan here they've had other experiences in the past >> very interesting stuff. thank you for the news we appreciate it thank you for your time. >> that was rob copeland that will do it for the

exchange i will saunter on over and join melissa on power lunch which begins right now do saunter we'll see you in a moment. president trump speaking about trade tensions with china moments ago and he said china is dying to make a deal we'll bring you all the headlines. a multibillion dollar glitch disney plus launching with technical errors but could it be a good sign. wall street is crowning both names retail royalty a top analyst joins us to explain why. power lunch starts right now the dowis off the session highs but we are still higher by just two tenths of a percent the s&p below 3100 by three points