issue that they've been watching so much. jan, we are about out of time right now. very quickly, boot barn. you love that stock too. >> i love boot barn. i showed you my boots when i walked in. western is really going to be big. boot barn is a really strong player and they own the marketplace. they don't have any competition. >> jan, thank you. that does it for us today. right now time for "power lunch. great to see you thank you very much. welcome to "power lunch. i'm tyler mathisen it's going to be a busy hour of power. fed chair jerome powell, he has just wrapped up his testimony on the current state of the economy saying this is the new normal, folks. and we'll tell you what it means for you and the market plus google coming for your data the tech giant will offer checking accounts to consumers and that's one day after it revealed it has been collecting health details from millions of americans. and later, nike dumps amazon as the new ceo and former ebay head john donahoe makes his first

mark on that company "power lunch" starts right now and welcome to "power lunch. i'm melissa lee. we're looking at the markets right now but this is not telling the entire story intraday, that's the story we went from session highs in fact intraday all time high on the dow industrial to a low. on a dow jones headline about u.s./china trade talks hitting a snag over farm purchases we'll get the latest and monitor the latest reaction for you. >> thank you, melissa. we're going to go now to washington and kayla tausche who has been following trade for us for many months now and has the latest headlines and some context. kayla? >> well, tyler, the headlines that are moving the market lower from "the wall street journal" which says that china is balking at putting a specific dollar figure of agricultural purchases

into the deal text remember, this was supposed to be a good will purchase primarily centered on intellectual property selections and stopping china's practice of forcing technology transfers but it appears the talks have hit a snag on these farm purchases according to u.s. and chinese officials cited in this "wall street journal" story. part of the journal story we do have confirmed and that is that the u.s. had been asking china to make stronger commitments to stop and police these forced technology transfers in exchange for doing that, they would roll back some tariffs china had been balking at that and had not necessarily in recent days been willing to make those commitments. but the journal putting a fine point on it saying china is balking at these requests and not committing to the agricultural purchases which president trump said would be $50 billion. that seems to be the priority of the president and certainly something he hopes to stur first

and foremost as part of this deal >> thank you very much, kayla tausche. meantime also in washington, jay powell testifying today on the economic outlook steve liesman was watching it from here. what do you find, steve. >> the chairman telling congress's joint economic committee essentially that rates are on hold unless there is a big change on the outlook. monetary policy is likely to remain appropriate that's the signal for them being on hold. the economic outlook overall is favorable. the risks are global slowdown and from the trade war and fiscal policy told congress is unsustainable. powell also emphasized that monetary policy is not on a preset course. >> we do think monetary policy is in a good place but we're going to be watching very carefully incoming data and if developments emerge that cause a material reassessment of the outlook, then we'll act appropriately. >> the fed funds market has embraced this outlook for fed

being on hold. less than a 1% chance now of a december rate cut. only in july does that chance rise above 50% then towards the mid-60s by the end of next year. among the areas most pursued by congress, questions on how low the unemployment rate can go >> i'm very open to the idea that we don't know where maximum employment precisely is. we have to have significant humility when we make estimates of that and let the data speak to us. the data are not sending any signal that the labor market is so hot or that inflation is moving up or anything like that. >> powell also said that low rates, low growth, and low inflation are likely the new normal and perhaps now low and even lower unemployment. >> all right, steve. thank you very much. good to see you. well, the dow did hit an all-time high before taking a move lower after u.s./china trade talks apparently according to headlines have hit a snag let's bring in steven rushuto

and scott wren steve, let me start with you let's talk about trade right off the top here the headlines are that there's been a snag with respect to putting a dollar number on agricultural purchases that the chinese are willing to do. is this something that investors should play past or be really concerned about? >> well, i think trying to nail down what the specifics of trade are at any specific point in time when there are so many moving pieces is extraordinarily difficult. i think the overriding problem with regard to trade is the fact both parties xi and trump need to come away from this looking like they've gained something. and that's the problem for the two of them. neither of them are willing to bend towards the other and the net result is i think we're likely to go back and forth with these kind of situations for quite some time until it becomes very apparent to the two of them they've just got to accepe simple

agriculture trade bill and get it done with and that's the first phase. >> u.n. yo, scott, the president yesterday said the chinese are dying for a deal and it's our decision as to whether we want one. it looks to me like the market is dying for the deal one way or another. >> well, i think the market is pricing in at least some kind of minor deal i think that's probably the way to do it but critical to the whole process is going to be, you know, these december tariffs go in, the market's not going to like that. so i think that on a day-to-day basis we hear, you know, they're going good, they're going bad. those types of things. but the market's going to be sensitive to that. but at least in our minds, clearly the market's leaning towards some kind of a minor deal the market does not need some comprehensive deal or anything like that. but ideally, you know, you'd roll off these september tariffs that are already in place and you wouldn't do the decembers. and i think that would be -- that'd be the best outcome that the market could want. >> it would be, but the

headlines seem a little bit more intense as the days go on. so steve, i guess the question to you is, you know, we heard from chair powell as steve liesman outlined earlier it seemed like there wouldn't be any deviation from the course in terms of cutting rates or moving rates whatsoever if the december 15th tariffs go into effect on top of the tariffs tha effect. do you think that the fed would move not necessarily in december but maybe early next year? >> well, let's understand from base number one. the fed's short-term interest rate levels are too high the dollar is rising and that's a problem. we run the risk of global inflationary risks that's why companies don't have pricing power. that's why companies continue to shift costs like we saw today with the shifting costs from corporate expenses to consumer expenses through health care because they've got to keep earnings up. an environment without pricing power because we're importing deflation, that's a problem. the fed has to realize the

biggest problem is global deflation risk, not macroeconomic conditions they're not there yet. i think within the next several months, they'll be there >> and how will they manifest that >> they'll have to cut interest rates. i think they'll have to move their balance sheet from just buying bills to buying out the short coupons. they've got to steepen the curve and steepen the curve out from the 2 year to the 10 year. in order to drive home to foreign investors the fact that you're not going to be able to double down by borrowing in negative rates overseas, putting it to work in positive returns here and getting a positive currency in the middle the dollar has to go lower we've moved up above 98 which is a dollar traded weighted basket. i think that's a critical level. when we got to 99.5, the fed balked and started buying bills. i think we'll go back there. >> steve, this is what you believe, though, aside from tariffs going into effect, right? >> that is correct >> yeah. scott, i'm wondering for you,

what's the risk return on the market at this point if you think about the december 15 tariffs going into effect >> well, melissa, for us it seems like you get some kind of minor deal, the upside gain so to speak is less than the downside if everybody walks away so right now, you know, we've knew tramized our position somewhat we're still leaning towards some more cyclical sectors, not a lot. but for us you can make a really rational argument on why you can expect a minor trade deal and you can make a really rational argument on why you think this thing is going to fall apart and everybody's going to walk away and i think that's the downside risk there's more to the downside than to the upside on a minor trade deal. >> thank you very much we appreciate it >> thanks, guys. >> good luck rates slipping today after what has been a big run-up rick santelli is tracking a all this action at the cme >> it's a strange day in

treasuries maybe not so strange it seems yields may be running out of gas and we can't use the fed or chairman today as an excuse because most of this happened outside our time zone let's look at the relationship specifically between the s&p 500 and 10-year. this goes back one month you can see there's definitely been periods of divergence, but the upward move of the s&p 500 line always seems to draw interest rates up. so we want to pay very close attention to this divergence remember, it used to be the treasuries were the smart sector in the room. i'm not so sure that's true anymore. god, i love the tear pages 30-year bonds are quite the same here we are right now drifting into the low 180s. our high water mark has been 194. but the 194 close here and you look at the 195 low here that pretty much sets the bar. when you look at the key area 190 on september 13th that level would be for bonds

very quickly on the fed today, negative rates just remember we went from 225 to 250 three rate cuts. 150 to 175 his answers it's not appropriate now doesn't give me a lot of confidence because they don't have a plan "b" as we start to see slowing some time in the future negative rates i want to hear more about how they'll never happen here. and finally on climate change, i don't want the fed to talk about that ever. until i hear states whose governors complain all the time that this is a big deal start to put some covenant in the municipal securities that investors buy in places like california and new york. melissa lee, back to you >> rick santelli, thank you. the first public impeachment hearings are underway right now. we're getting reaction from the white house. ylan mui has the response. >> the white house now responding to these new revelations from bill taylor the acting u.s. ambassador to the ukraine. he had told lawmakers that one

of his staffers overheard a phone conversation between president trump and the ambassador to the eu gordon sondland in which president trump mentioned, quote, the investigations and sondland said that the ukraine was ready to move forward now a white house spokesperson telling our eamon javers that the latest evidence is just an anonymous staffer who told someone he overheard someone else talking to potus on the phone. all the evidence in this case is hearsay. now, the impeachment inquiry hearing is ongoing and one of republicans' line of attacks is to try to prove that there was no quid pro quo. that the security aid to ukraine was released without any commitments of an investigation on the part of ukrainian officials. >> my clear understanding was security assistance money would not come until president zelensky committed to pursue the investigation. my clear understanding was they weren't going to get the money until president zelensky

committed to pursue the investigations with all due respect, your clear understanding was obviously wrong. because it didn't happen >> now, committee members now have five minutes each to question the two witnesses who are testifying today the tone of the hearing has grown more combative as lawmakers start to enter the fray of course, we will keep watching and keep you posted with the latest >> all right thank you. ylan mui in washington coming up, almond milk, soy milk and others helping to send dean foods into bankruptcy beyond meat threatening to do the same to the meat industry. the future of food is next on ow lch."

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credit cards and cameras. and people inside from accidentally visiting sites that aren't secure. and if someone trys we'll let you know. xfi advanced security. if it's connected, it's protected. call, click, or visit a store today. welcome back to "power lunch. food stocks dealing with some indigestion. 94-year-old milk producer dean foods filing for bankruptcy yesterday as consumer preferences has shifted away from dairy to dairy alternatives like almond, oat, own soy milk beyond meat shares are up more than 200% since its may ipo. dunkin', burger king have been

adding plant based meats to the menu so are these trends here to stay and who is best fit to survive the fake food frenzy let's bring in alexia howard and brian gildenburg brian, i'm going to you. how do we know this isn't a fad? it feels faddish at this point >> i think a lot of things always do, but the biggest sticking point we see today is looking at a lot of trends be they natural, organic, cbd, they always seem to be evolving within the context of families forming later and having kids later. so what you're seeing today is, you know, somebody in their 30s or something that's having their first child, hypothetically, what they've done, they've been an adult for 10 or 15 years now by the time having kids. rather than a 20-something who's been an adult for a year or two and going back to do what their mom did, they're trying to bring their adult sensibilities to families i think this is why a lot of

these more natural trends are sticking because they're sticking post-parenthood. so be it organics, natural, fake meat as we're calling it here. i think all of these have much more staying power >> older parents are feeding their kids oat milk and fake meat burgers >> opposed to just having it themselves and giving their kids less natural, yes. >> we take a look at the example of dean foods, because the interesting thing about them is it did have white wave in one point in time which was the alternative milk section of the business it spun that out should we look at this as sort of this is what's going to happen in this industry to meat versus fake meat >> yeah. i think that's way too early to call that transition i think what we'll see over the next ten years is plant based meats are going to develop rapidly. we've got them at about 5% of the market today we think they could go to 15% of the market over the next ten

years. that would be the way the plant based beverages have developed that would be a $40 million market that's already a very good start in the u.s. and it could be -- >> how'd you get that number >> that's basically 15% of the $270 billion meat market in the u.s. today >> so let me ask you a couple of questions here number one is this is it necessarily true that the winners in these transitions will be the upstarts, the disrupters or is it possible or maybe even probable that the major large food processing companies will disrupt themselves before they get disrupted. they'll go and they'll buy the little guys and embrace them what's the game here >> white wave is a good one. they spun it out and it got bought that's how it could play itself out. i think there is something to the idea that at scale food companies can bring techniques to scaling some of these businesses like they did in organics i think the other big piece of

this to keep in mind is that the large retailers that sell food, other things being equal like working with big companies because they've got more resources to help them then the big retailers could make interesting choices here as well >> i think when you think about the meat market, there's lots of different subsegments in meat. and i think what we're -- what's going to end up happening is you're probably going to end up with three to five different brands in each subsegment. at the moment there's plenty of room for everybody >> so question two is, i had my first impossible burger. >> how was it? >> it was okay i mean, it was okay. it was more bun and other stuff than burger. >> but you didn't have it plain to have the pure experience. >> no. i should have had the really plain thing. i take your point that maybe older individuals building families who are aware of diet and so on and so forth are turning this way but what's the evidence here are these products whether they

are soy based, almond based, oat based, are they necessarily better for you is the plant based burger necessarily better for you than a plain old meat burger? because there's a lot of processes in these foods >> so i think there's three criteria for wanting to buy plant based meats. there's the health angle, the animal welfare angle, and climate angle. i think the animal welfare angle, clearly better. climate, clearly better. health a little bit tougher. they are heavily processed they've got more complicated ingredient lists they do have no cholesterol which is a legitimate claim relative to red meat and they are not red meat if you happen to be an older person trying to avoid that explicitly. there's a market for it but it's not that compelling on the health side. >> you said three things, it was interesting. the climate -- >> animal welfare. >> animal welfare, okay. >> and health and wellness >> from our data, over 70% of

shoppers say things like ethical treatment of animals are either extremely or somewhat important to them when they're making choices about what they buy. so i think there is something to even though it's not proven tor healthier for me if it's healthier for animals and the world, shoppers are interested in it >> all that said, alexia you recently upgraded beyond meat. >> initiated an outperform and downgraded >> and got it back up to an outperform part of the catalyst in terms of their stock is announcing all of these partnerships with various qsrs and recently burger king said they were going to tap unilever to do its fake meat in europe. these guys don't need a beyond meat, do they? to tyler's point if that's going to be a main catalyst for the stock near term, they could eliminate that entirely they could develop their own product with somebody else >> i think it's all going to be

about who is the front runner in terms of taste and texture i think that beyond meat has gotten ahead of the game on the breakfast sausage side of things they've got a good product when it comes to the burger side of things also impossible can't go over to europe which i think is going to be a big market because the concerns about climate are much bigger over there. i think if you're going to have two or three subwinners, beyond could be one of them look at chobani. they're still standing and still independent. >> alexia, you have better answers than alexa, okay you answered the question. what's the weather going to be like tonight alexia >> thank you your answers were good, too, bryan. >> i'm just not named after a speaker. big tech doesn't seem too worried about changes d-- charges, excuse me, getting too big. google considering getting into banking. we've got details coming up.

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welcome back to "power lunch. i'm mike santoli at the new york stock exchange jay powell suggesting this morning that rates are on hold for now. what could that mean for one of the hottest corners of this market the home builders. let's bring in craig johnson of piper jaffray and gina sanchez craig, obviously home builders and housing related stocks has been one of the stronger parts of the domestic economy. bond yields going up, mortgage rates perhaps have bottomed. what does the trend look like? >> so mike, let's put it all into perspective if you look at this first chart we brought in, we looked at all the big home builders. you can see how they've outperformed by over 20% so the big question now is is this going to continue are we going to stall out here if we go to the next chart and look at the home builder chart itself, we're running into overhead resistance. right where we were in december

of 2017. and so from our perspective, we're going to need to see some sort of new catalyst may maybe rates to come back down or some accelerant to come back through this i've seen i did ver jins in the short-term indicators. i would be booking in some of these waiting until we see where 10-year bond yields shake out at >> maybe the trade looks tired in the short-term, but i guess you could take a longer term perspective even we the numbers lately still well below historical levels of new home building and all the rest after the big bust a decade ago. >> well, actually yeah i would say that we're a long way from where we were a decade ago. and one of the big differences here is that affordability really is in favor of home builders but the big problem for most home builders is that the place that is the hottest is going to be the sort of lower end of the

market, the affordable space and there you actually have a huge crib in inventory there isn't enough land. there isn't enough labor which home builders you choose to sort of exploit that part of the market but that's the part of the market that actually can still go for some time because there's still a huge demand there, affordability in their favor and rates are on hold. they're probably not going down, but the economy is going to continue to be weak. so we're probably not going to see them go up so i think that that affordability will continue to benefit the lower end of the housing market and home builders building there >> it's an unusual cycle to see the home builders kind of catch a second wind in the latter part of this expansion. we'll see if that does continue. thank you very much. for more trading nation, follow us on twitter. back over to you >> thank you ahead on "power lunch," amazon getting dumped.

nike no longer selling products on the website how the shoe maker plans to move on and focus on itself for a bit. plus tech takeover stealing from wall street banks. consumer checking accounts we've got the details next and the push to private equity why ipo woes could be driving money away from the public markets. all this when "power lunch" returns. and now the latest from tradingnation.cnbc.com >> many people say don't fight the fed. but that doesn't mean you have to fear the fed. if you're a long-term investor, don't let a fed announcement derail you if you're a short-term trader, you may want to consider waiting until after a fed announcement before taking on any new positions. i'm randy frederick, and schwab is the better place for traders.

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minimize the differences >> i have to just finish by saying that the president and i have been very good friends. we've been good friends almost from day one and we understand each other's country. we understand where we're coming from a bus collided with a truck in slovakia killing 13 and injuring 20 more reports saying the bus was carrying high school students. the prime minister called the crash a horrible tragedy one of jesse owens' gold medals from the games in berlin is up for auction. one of his four golds was auctioned in 2013 for nearly $1.5 million and that was the highest price ever for a piece of olympic memorabilia. the auction runs through december 7th just in time to put under the christmas tree. that is the news update at this hour ty, back to you. >> thank you stockspreparing gains as they hit another record.

there are new reports that u.s. and china are once again hitting a snag on those trade talks. the dow industrials are up 50. they were up much more than that as that little intraday graphic shows you there. about 1/5 of 1%. very, very slightly when you look at the numbers. time now for today's power movers disney shares jumping midday now up 6% at the height of the session. the company saying disney plus already has 10 million subscribers. smile direct club taking a dive today. now down 6% from the ipo price the company posting a huge loss as it continues to spend heavily on marketing that stock is down 19% and it's a different story for another recent ipo datadog. the company losing less money than expected thanks to stronger sales. barclays, credit suisse updating the stock. it seems big tech wants to take over, well, everything. and google is on the hunt for

your data. they will soon offer checking accounts to consumers entering the financial services realm with the likes of apple and facebook and just the other day, more details emerged about the collection of health data triggering a federal inquiry with us now to discuss the evolution of big tech is hew son and joanna stern hugh, i'll start with you because i want to get the details of this. i don't understand why google wants to be in the checking account business >> they say it's a smart checking account with personal finance tools, budgeting tools that are going to be embedded in it it's going to be with citigroup and another credit union the play is data they want to know if, for instance, you go on google play and you're searching for something, find something, pay for it with google pay you have the rails from your citi checking account, buy the item sop they know from, you know,

search to actual purchase. i think that last mile is going to be the valuable mile. so they made it clear they don't want to sell it so they want increasing level of, you know, specificity into how you behave. and that's part of pit. >> when you say they don't want to sell it to third parties, does that also include using the data to help advertisers better target their audience? >> that's a great question that remains to be seen >> your thoughts on that because there are concerns that google now has their tentacles on all sorts of your data. >> my bet is if google is going to collect data about us, we're going to be seeing advertising related to that data that's just what history has shown us whether you look at their banking or their health care expansion, it seems all of this is about making their walls wider and higher around their consumers. as more tech companies -- or as more companies become tech

companies, google wants to capitalize and whether it's google or amazon they want to capitalize on us thinking they're the companies that do everything >> so why would they need citigroup to do this why don't they go buy a little bank >> i think brand recognition is one main thing, right? when we're looking at these interfaces whether it be the apple card or this, consumers expect a certain level of trust in some of the financial institutions they know already google may be, you know, a newcomer there apple may be a newcomer there. people may trust them for technology but some of that financial back end in that infrastructure, the consumer may be much more inclined to go with a citi bank or goldman sachs >> just because of the branding power. >> yeah. >> i also think if a big company purchases another institution, then the whole parent company would be looked at >> joanna, i'm just curious when

you think about this and with the essential data it's just another reason why regulators can be distrustful of google because they have so much data >> i think what we've seen over the lastcouple of months is th tech companies are not pulling back their tentacles as they were planning to as they were planning to expand into different areas i think specifically with google in this space, it seems like a consumer play. the insurance and the health care reports we had in "the wall street journal" earlier this week, that seems like much more of a bigger business or data play but in this case it seems like it's something they want to offer to consumers >> and should the banks be worried? last question. >> big tech coming for big finance, that's something they should be concerned about. >> all right

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breakups are never easy especially right before the holidays nike announcing today it will stop selling clothing and shoes on amazon abruptly ending a pilot test wall street is showing no sympathy over the split saying nike was smart in leaving amazon's platform since it didn't allow them to cultivate emotional connections with consumers. i didn't know buying something online could do so much. will this start a trend where more will leave them at the altar? you got to wonder because nike had such a strong dtc business in the last few quarters why it would ever do that, won't it cut off partnerships with even more platforms? >> sure. well, i think nike is doing this -- they say it's a pivot to

actually grow their direct to consumer business. i think key to remember here is this was all a pilot to begin with for nike. back in 2017 nike wasn't working with amazon. it actually resisted making this move for quite some time there was a note saying nike was the most popular apparel brand sold on amazon that year none of those sales are from nike though. that's third party sellers >> neither nike nor amazon >> exactly amazon, i think that's what -- and it continues to struggle with but that's been part of its passion. >> if you did a google search today, there'll still -- it hasn't fazed out this pilot quite yet. >> any idea how much nike made off this >> no. analysts think it's slim to none nike at any given point had more than 150, 160 products on there to choose from to begin with this pilot test was small for

them >> is there any indication or belief that nike could deter other partners like a foot locker nikes have bricks and mortar already. why does it have to sell through other stores >> well, nike i think over the years we've seen them kind of slim down who they work with and they're focusing foot locker i think is its biggest partner today. foot locker, dick's sporting goods, and nordstrom are the three of the biggest they sell through. outside of that, they've got product in macy's and some other channels but they're really focused on direct to consumer more than 30% of their annual sales are through that direct to consumer channel now and they want to continue to grow that. >> lauren, thank you >> thank you >> lauren thomas for more information on amazon and nike, visit cnbc.com all right. time for our tasting menu. here's some of the other stories we are watching today. ubs launching coverage of the airlines sector with bullish ratings on united and jetblue. airlines have generally done well this year despite the fallout from that boeing 737 max.

ubs says non-737 carriers are likely to be in better shape to start the year and of course quite a few of those carriers have delayed even longer the return of that 737 max. >> krae. criticism about the airline industry has been it's sort of a boom and bust industry but ubs says it looks like they've got costs under control. >> i wish they could get their schedules under control. i booked a flight yesterday. i'm not going to mention the airline. let's just say it's a major player at newark >> i wonder what airline that is >> and the -- i went on flight aware one of those things and it said, this flight has an on-time record better than 0% than the other flights. i'm going, what am i doing >> better than zero. >> but nobody's worse. apple reportedly looking to boost its streaming business hbo's former ceo richard plepler looking into apple tv plus the deal could be finalized in the next few weeks

also rbc capital initiating with a $295 price target saying the company has multiple avenues to integrate itself into the lives of consumers i think there's probably never been a better time in the world to be a television producer. >> yes absolutely we're talking about the content on arm's race. it's a talent arm's race >> it's a talent arm's race. and the makers of the -- the assemblers of the tv shows and whatever they are, strip show is a term of -- it's not what you think i'm mentioning >> not rated "r" television. >> yeah. those guys are in the cat bird seat >> apple by the way new high in today's session. d.c. bar owners are looking to cash in on impeachment hearings a number of local favorites are opening early and offering creative cocktails for the event on the menu subpoena coladas >> that's pretty good.

>> quid pro quo and of course insane in the ukraine. you can order one to get through the hearings >> i like the subpoena colada. ♪ if you like piña coladas ♪ and getting caught in the rain ♪ >> there you go. and i believe the singer was from washington, d.c >> so he'd appreciate it walgreens the best performing stock in the past month. it could be the target of the miggest leverage buyout ever cong up, why money is pouring into private equity and where the money is going from there. woman: my reputation was trashed online.

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dow's recouping some of the losses lost in that dow jones headline that u.s./china trade talks were hitting a snag. >> the growth of private capital is a big trend emerging in the global asset management industry reports servicing kkr has made a formal offer to take walgreens boots private. pace of new money flowing into private equity is on the rise with 15% growth in the first half of this year alone versus

8% for etfs. that had been, of course, a hot spot next guest helps raise money for private equity funds the founder and ceo of triago and private equity entrepreneur. good to have you back. >> thank you, tyler. >> why is money flowing into private equity compared to even etfs, which had been leading the flood? >> three main reasons. performance, private equity is one of the only asset classes with a two-digit return right now. >> historically? >> historically, yes it's been like 11.3 over the last ten years black rock expects the asset class to return 13% over the next ten years second reason is resilience. it's actually now proven that private equity is not that volatile and that even post l

lehman it's quite good and third reason is liquidity. >> you couldn't get out? >> you couldn't get out. you were getting in and you were taking like 15 years to get your money back today you can take a few weeks to get your money back if you need to. you can get out if you wish to. >> for institutional investors, whether they be a mutual fund, insurance company, endowment, whatever, foundation, how do the fees compare with those on another big competitor in the marketplace, which would be hedge funds? >> well, fees are usually like 2 2-20 you pay 2% a year for management fees. >> in private equity >> in private equity hedge funds are basically the same what you have to look at -- >> it's not a price advantage? >> it's not a price advantage. you have to look at net returns and you have to look at the correlation with listed stocks. >> you said liquidity, i thought you meant the liquidity around the world because 0% or negative

interest rates what role has that played? have we seen exits from the rounds of money raised during this negative interest rate period to know what is invested in this period also has those historic returns >> well, of course, the environment helps, right when everything else is returning zero basically, if you are able to return 10, 11, 12%, you're a hero. and everyone wants to invest in your asset class this is what's happening and this may last for a while. >> those exits at 10 or 11% returns are based on money that was raised in a different time. >> yeah. yeah, yeah funds get raised for about five years. >> is there a concern that all of this money that needs to be put to work is contributing to higher valuations than, perhaps, are warranted? >> oh, yeah. oh, yeah i think there is a lot of money chasing deals right now. investors have to be careful where they put their money

it's a pretty large business, 10,000 gps out there a few that you want to avoid because they're paying expensive prices and some that most of them are. >> it's interesting to me that according to black rock, 51% of respondents plan to trim their exposure while more than half plan to put their mon nye private markets, private equity, in a year ithe united states, are returning more than 20%. >> of course the question is really what's next, and do you want stability? what do you think about next year do you think private equity is actually quite good when times are bad? i think this is what people fear they are taking their time to put the money where it should be. >> is it your bet that several -- you can think of who i'm thinking of. several companies that went public this year wish they hadn't and wish they had sold their private equities.

>> i have a few names in mind, of course. of course. i think many companies are now staying private because this is an option. this is an option because there's enough money out there. >> and patient money. >> it's very patient money they can stay for decades if they want to. >> antoine, always good to check in with you. >> thank you, tyler. >> very nice to see you. >> thank you. >> all right thank you. >> check please is next. datadog has become the modern monitoring and analytics platform in the cloud age. when we started datadog nine years ago, our mission was to break down silos and bring teams together. nearly 9,000 of the world's most innovative companies rely on our platform daily to run their business and delight their own customers. we see a massive opportunity in the years to come,

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one very important earnings that we'll be following on "fast money" after 5:00, cisco systems, the headline that tore peed owed stocks intra-day here. key commentary about china, weakness in china last quarter and ceo chuck robins said that business had dropped precipitously there because of the u.s./chien camera trade wna >> this is obviously a company right in the middle of that dispute. if you don't think this hits home it does from cisco to the kid. the kid being kelly's baby, kelly evans had a new baby boy, 9 pounds, 10 ounces. >> a big one. >> 9 pounds, 13 ounces. >> wow >> a big boy to kelly, get ready. she has an older son, paul, who is -- >> 2-ish. >> get ready for some serious

breakage around the house. it's going to come to an address near you kelly is smiling and happy and the little boy is doing well congratulations to the family. >> yes, congratulations. and thank you for watching "power lunch." >> "closing bell" starts right n now. and welcome to "closing bell." i'm contessa brewer in for sara eisen at the disney post again today. this stock is up more than 7%. the highs of the day on those wow numbers coming in, releasing the first-ever subscriber numbers for disney, plus it has investors excited, e >> absolutely, contessa. first and foremost, our congratulations from everyone here at closing bell adorable fophoto, congratulatios to kelly and everyone. fed ch