i bought them during the show. >> joe you get two. >> part, sell half >> what do you think of the call on tech? get a long tech? >> now >> always time to be long tech >> exactly it's a longer the term story. >> good to see you the exchange starts now. >> thanks. all right, thanks, scott welcome, everybody, i'm dominic chu and here's what's ahead. a major deal on wall street could be announced any minute with sources telling cnbc that charles schaub is in talks to buy td ameritrade. plus, google lays out its political ad policy then one of the biggest names in media has a a warning for hbo. but let's start now with a look at t today's markets

as you can see, they're moving with some marginal losses. the dow down by about eight points s&p just about flat and nasdaq off about .2 of 1% we're very, very near those record highs one theme that we're kind of keeping an eye on is what's happening with oil you take a look at crude oil that chart is spiking. we're up about 2%. this after headlines from reuters saying that opec may look to extend it production cuts when it meets next month with its partner countries, especially russia. those oil prices very much a focus there and of course happening with our stocks of the day, you got to say it's charles schwab and td ameritrade that's our opening exchange for today. take a look at these two brokerage behemoths. if they were the to merge, the combined company would have more than trillion in combined

assets near ly 25 million client and brokerage accounts it's a goliath in wells management according to mike ma mayo but how did we get to the point on wall street where two industry titans actually need to make a deal? many say it was the race to the bottom, brokers have slowly slashed prices from one to five or seven bucks a trade all the way down to where they are today. that's zero. in an effort to stay relevant in an industry undergoing massive disruption for more on the factors at play and what could be next, i'm joined by greg zucker man, a special writer at "the wall street journal" as well as bob pisani and mike santolli bob, to you first. this is an environment where brokerages have been cutting trade commissions for a listening time now the environment like today that makes schwab maybe need to get

together with td ameritrade. >> average revenue generally dropped across the whole industry 12 million customers at schwab, 11 million at ameritrade not just commissions you're dealing with lower cost etfs dominating. that's less revenue. a problem. td ameritrade is a bank. there's a bank at schwab there's pressure on them to raise interest rates they're paying for the customers wealth management is another part of the business but there's pressure there from robo advisers. the answer to motive is scale. >> the macro environment, feed compression, spread compression, interest rate compression, has gotten us to this point. is that the theme i guess going forward? are all of these companies going

to have to do the same >> it's absolutely the theme i think essentially, investment services are now in a way technology services so driving down the cost across the board and therefore ringing margins out of different stages of the industry what that's what's happening. i don't know if i could characterize this as schwab having to do a deal, but they're responding to this long running pressures on the business that have grown more intense and the virtues of scale and just consolidating a lot of these cost functions are clear this industry has gotten to this point through a series multiple rounds of many mergers and they kind of know the playbook. how to eliminate costs and try to retain most of the customers by picking the best from each platform and hopefully just a aggregating those assets so i think the financial logic is pretty rock solid the question is will they together be able to kind of lead and really defend themselves against the likes of fidelity

and vanguard as well >> so greg, mike brings up some great points here but the other part we have to look at is technology as being a driver because you have this profit margin compression because technology has made it able to happen, to do so so what does that mean about the environment right now? how much of this is because the disruption happened because fees have come todown so much because investors have been able to capitalize on advancement in technology >> it's also the fact that investors are sick and tired of paying fees when they shouldn't. it's across the boards institutions small investors. what schwab did was brilliant but also ruthless. they slashed it to zero. they don't get that much in the way of revenue from commissions any way, about 7%. td has like over 35% or so from commissions. so they like others, realized

that people aren't paying these commissions for underperformance and so many people are going to passive investments to quantitatequantit quantityiquantit quantitative funds. >> schwab is the outperformer in this group td has been an underperformer here so if this deal were to hypothetically happen, it would be like buying it at a discount at this stage, right >> it would. it would be valued just at pure valuations based on expected earnings down near 12 or 13 times earnings also the stock price being down off its highs. the it's an opportunic type move i think almost everybody sees the ingredients for another round of consolidation in this industry this isn't necessarily the pairing. a lot of people had. because schwab could have just said there and said we're the incumbent among the publicly traded ones they had the most business and all the rest of it. but scale is pretty attractive

if you can slam them together. >> craig, we're going to give you the last word because this is something that mike and bob both bring up. there are greater forces at play here is there something that's the key to watch in the coming years with regard to financial services and specifically with the brokerage business >> listen, the market is changing and you don't have the traditional type investors hedge funds and others charging high fees and the small guys, the brokerage firms and others can't charge the e fees they used to it's really harder to beat the market than it used to that's the larger issue, the whole idea of getting an advantage, information advantage. everything's changed so do the big investors and small ones everyone's trying to adapt with technology or slashing fees. >> thanks. bob pisani, mike and greg as well and we should mention that greg has a new book on shelves called the man who solved the market how jim simons launched a

quantity revolution. check that book out. >> macy's shares in the red but way off their session lows after falling on a revenue miss. also slashing full year sales and profit outlook and tonight, we have two other disasters in retail set up to report. that's gap and in order strorm let's talk about surviving in retail with randy. retail analyst at jeffrey's. you cover so many of these names. how much of this has been this news onslaugt about retail and is it dead >> it's not dead, but what we have here are winners and losers you can see with macy's, they had a tough quarter but blamed tourism, weather we really know it's one word target target comes for apparel at 10% this quarter comps at macy's town 4%. koelz kolz, only up slightly it's actually competition

relate consumer ones value. they want brands and they're going to places like tjx. target they're going to other places other than macy's. >> how can there be such a discrepancy in terms of performance with certain tier companies? we know lowe's and home depot. home depot, a little wearer. lowe east surges to a record high as i say this because i spoke to a hedge fund trader this morning b who said the retail industry is ripe for pair trading going long and short and trying to find those gaps >> there's always market share between these different xaeps n companies in a space and it's very momentum driven you have a hot profit. get market share your comps go up, your stock goes up as well. the market'sed brands come and go lululemon wasn't here ten years ago and now it is. gap was the big thing in the

'90s, now it's not it's about trying to figure out where the brands are going who's hot, who's not what we're we're trying to do now is look for value. brands that are kind of good out there and have longevity but are really priced low. one name we like is capri. numbers turned positive for the first time in a year and a half this past quarter and for six times earnings, seven time, we think there's a lot of upside. >> we had macy's this morning. still very much on the downside here we've got gap and nordstrom after the bell this is an execution story for these companies. so what do they need to do macy's, gap and nordstrom? what should we be looking for this afternoon >> what they needed to do was just put up the numbers against low expectations the stock is down only a percent at last check because of low expectations with the gap, we know the numbers. we know the company gave their comp that forecast or expectations for the quarter

they're negative they've lowered their outlook for the quarter. not good the stock has taken it op the chin as well with gap tonight, what we want to know is is the company going to continue to split or spin off old navy that's going to be a big deal and actually, we put out a note with the pre announcement with ceo leave iing, that we think t a split may not be a good thing anymore. it may not because old navy comps turned negative and when they announced the split, they were doing fairly well and with the comps turning negative, it may not make sense anymore, so any clarity on or nonspin would be probably a good thing for the stock at this point. >> big deals coming up thank you very much. all right, a quick uptate on baking related deaths and illnesses. it's 47 people in the u.s. have now died as a result of vaping related lung illnesses according to the cdc an increase of five over the

same time last week. they're also upping the number of people with vaping related diseases to 2,290. that's an increase of 118 from the last reading as well so the cdc continues, folks, to update us on the results of their vaping studies don't go anywhere. here's what else is happening on the exchange >> coming up one of the biggest players in the cable wars tom rutledge joins us with a look at where the are industry is headed as streaming dominating the conversation. plus, tesla's scyber truck. can the new pick up keep the stock's rally going? and google takes the middle road when it comes to political ads on its platforms what do advisors look for in an etf? this is the exchange on cnbc

or built to last? etfs are only part of a portfolio. so make it easy to explain. give me a quality fund that helps me get clients closer to their goals. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence. before investing, consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. by the way, she's the it wasnext mozart.g day. as usual we were behind schedule. but sophie's enthusiasm cannot be dampened. 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.

welcome back the media landscape has been changing with streaming front and center for a look at how the cable companies are navigating cord cutting, let's bring in one of the biggest players in the industry, charter chairman and ceo, tom rutledge is standing by with david faber from liberty's investor day david, oaf to you. >> all right and i'll take it. thank you, dom

you know what, we'll start with cord cutting you did hear the introduction, but that was one of the questions of course that we have first of all, thanks nice to see you u again. >> glad to be here >> been a while. >> cord cutting we talk about a it all the time, endlessly, a huge important trend in our business and your business, but there are some people who believe that things are going to become a little less severe i guess. are you one of them? >> yeah, i actually think that's right. you know what cord cutting is is it's actually a bad term because we're actually adding lots of cords. broad band subscription, connections we sell, mobile, broad band, they're increasing in terms of the rate of growth, but television viewing the big bundle of services that people historically bought those, that's been under a lot of pressure but i think it's slowing down one of the reasons is because a lot of the damage from the high

priced environment we've been in and the lack of security with password sharing and everything, kids going to college with their parent's passwords, that whole college market's gone and the second home market's gone to a certain extent and a high transaction multiple dwelling units with young people in them. >> you know, new behaviors -- >> most of the cut, most of the losses to be fair have been at the direct broadcast satellite companies. not that we don't follow closely your video sub losses. >> ours are relatively minor comparatively speaking, but i think in aggregate, they're going to slow down >> you do. >> because most single family homes have big tvs in them and that's where you get sports. news get live tv. like this. and still going to be under price pressure not saying the category's not

under pressure, but i think the rate of decline will slow. >> that gets me to another question which is this theory that's been out there and speaking to john malone earlier, he brought it up as well which basically goes something like this. you're better off actually getting out of the video business aisle quote him to you so you can respond because he's not alone in this. it's been discovered that margins improve as you lose video customers and become less capital intensive. so you shrink the video base cap ex goes down, stock takes off. >> yeah, that is the narrative and it's true. but still think there's margin in the video business. not as great as it is in the broad band business and yes, the it's more capital intensive but becoming less so. so i think that having a lower margin video business attached to a higher margin broad band business makes a lot of sense as long as there's margin in the business so i think you can have it both ways

it is true that capital intensity's come down and it's come down for a lot of republicareasons. we have over 4 million app based services now in the marketplace. meaning people with a big tv that's app based don't need a set top box so our premesis hardware capital has come town and ip technology has allowed capital coses the come down so the whole business is less capital intensive going forward for a variety of reasons but it is true video has been more intensive >> it is, but there's this theme that says you're happy to see them go. >> no, i don't think that's really true. it would be true u if they had no margin but they still do. less than it was ten years ago, five years ago it's still a good business on the margins. >> how much of your revenue growth right now is comeing from

price increases? i'm a spectrum customer in one place and i've seen it as well for broad band and how much from volume >> the majority is volume. >> it is not price. >> that's right. our strategy has been not to raise prices significantly and we have not. as a proportion of revenue u the bulk of our revenue growth is volume. >> can you continue that >> yes >> why >> because wer still underpenetrated. we have about a little over 50% broad band penetration and 31ish video penetration. and we have almost a million mobile customers so we have 51 million homes that we pass with our infrastructure. so we still have an opportunity to grow customers and customer relationships and that's our primary strategy and most interestingly about that strategy and not using

price to drive our revenue is that every customer we create on our fixeded networks us less to operate than the current customers because you have a fixed capital investment that's being spread over a bigger base. so we think it's a vir chus growth cycle that we're in and we don't want to use price to knock it down even though in the short run, it looks attractive from a revenue perspective >> we're already running out of time, tom, but you mentioned a million mobile customers there's a thought that perhaps the nbnos, the capacity agreements, won't be enough eventually that you would need to buy a wireless player. down the road. is that a possibility? >> well, look, i think there are a variety of ways to get the owner's economics through time and we've done a bunch of experiments using the new spectrum that's available. and we found a way to actually

use that to take traffic that's currently on the nbno and move it to us so does that meep we have to buy a wireless capital or invest? i think both those things are alternative pathways, but today, we're using the nvno and it's perfectly satisfactory it's margin positive and driving customer relationships, but as time passes and our penetration goes up, we'll be more interested in owner's economics. >> finally, wouldn't be a rutledge interview if i didn't ask you b about m and a, but it won't be about past, verizon or softbank malone brought up this morning that patrick, calls him all the time says i want to get these two companies together would you be interested in buy ing them >> we think cable assets properly run are really good

assets and really a great business we buy a lot of our own stock because because we think the business is good and it's futures good i think that way about all b cable companies. there's obviously price issues and how you run the company and where it is. i run those myself >> right the old cable vision assets. so i know what they are. and i know what they can be. and but you know, getting price discovery and getting to an agreement's a really complicated thipg and all of the companies in our industry that are left from an m and a perspective are controlled companies >> right but you don't seem to be saying it's not a possibility >> no, but it's a price problem and a timing problem >> right as most is >> so much of life is like that, too, and speaking of time, we're out of it unfortunately, but tom, always appreciate you're taking some with us. >> thank you >> david faber, thank you very much and to tom as well. we appreciate it

coming up u on the show, google joining twitter and changing its political ad policy to a degree. a look at how the tech giant is tackling the issue and how much pressure that puts on facebook to change its ways, plus, could hbo be in trouble when it comes to the streaming wars? the answer is yes. that's according to one media mogul. what he says that's coming up ead. don't go anywhere. the exchange is back in two minutes. people go to learn about their medicare options... before they're on medicare. come on in. you're turning 65 soon? yep. and you're retiring at 67? that's the plan! well, you've come to the right place. it's also a great time to learn about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. here's why... medicare part b doesn't pay for everything. only about 80% of your medical costs. this part is up to you... yeah, everyone's a little surprised to learn that one. a medicare supplement plan helps pay for some

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sue? >> thank you here's what's happening at the hour, everyone the united nations children's fund says more than 650 children have been killed in syria this year the high figure comes amid reports of shelling near a camp hosting displaced syrian residents near the turkish border >> last year was the deadliest year for the children in syria and very unfortunately it looks like this year is following the same so far, 657 children have been killed in syria. >> the first prototype of spacex's next generation launch system was damaged on wednesday during a tanking test. the company claiming the setback would not seriously affect their development plans. a white plume erupted from the top of the vehicle b and that

plu off part of the bulkhead from that section of the vehicle. general motors is recalling more than 640,000 pick up trucks due to a fire hazard the automaker says heat from a high-tech seat belt can set the carpeting on fire. the recall covers several 2019 and 2020 silverado and gmc sierra trucks. that's news this hour. back to you. >> thank you very much for that. here's what's coming up on the exchange >> ahead tim cook doesn't believe in lobbyists but his company spends quite a bit of money lobbying. elon musk loves to crack the pick up market john malone has warning for hbo. and lee nonardo dapicrio won't an oscar for his latest venture. it's all comeing up on the exchange okerage account. with value like this, there are zero reasons to invest anywhere else.

fidelity.

let's catch you up on a few stories that should be on your radar. time for rapid fire and here with their takes, bill griffith, rahel solomon and robert frank >> can we talk about what we were talk iing about before

>> the attire? >> frosted tips on your hair >> if you want to weigh in, there's been a suggestion here that i frost my hair and put tips >> or at least some streaks. come on. >> we'll see what the twitter verse says about this. first up, guys, a bit of contradiction from apple's ceo, tim cook cook telling abc news yesterday he does not believe in lobbyists, preferring direct conversations instead. however, since 2017, the company has reportedly spins $18 billion on you guessed it, lobbying. that seems like a lot. >> you see there's video from yesterday? you see that >> i did see it. >> that's lobbying at its fin t finest if you can get the president of the united states to fly across the country for a public relations tour of a factory that he didn't really need to do, that is lobbying and what did the president say while he was there? he said that they would consider

exepgss, tariff exceptions for apple. that's a home run. >> kiss the ring, right? all of a sudden, the it's all good >> he's been a master at flattery, the president. at finding channels into the white house through jared kushner and ivanka and giving the president what he wants, which is a lot of personal phone calls and job promises that's what tim cook just nailed that formula right away. >> to be fair, although apple is spending quite a bit in lobbying, so are its peers microsoft is amazon is and we should say that it's lob its lobbying budget is declining, so this is an example of apple and tim cook hedging their bets then you also you know show your face a little bit. get a little face time action. >> two premium brands both in texas and both with the president showing up that's big >> next up, tesla set to unveil its first electric pick up truck tonight. the cyber truck. no word on official pricing,

though elon musk said it will start at letsz than $50,000. the truck has been six years in the making with musk hinting it will look something like a ford f 150 meets the movie blade runner, whatever that meeps. meanwhile, the stock has been in high gear as of late up u about 75% in just the past six months and we all know this is a battleground company. it's not just about the stock. it's about the referendum on elon musk and his vision >> absolutely but analysts are really torn on what this will mean p i mean electric pick ups, electric pick ups is sort of a new space, of course they have the market corner when it comes to electric vehicles, but pick up truck owners, are they going to be interested in tesla and musk b k himself sahimself said something. so many questions about what this will look like. he has said it will look unlike any other truck in the last few years so analysts are going to question whether that's going to appeal to a traditional pick up owner e! about an hour ago, gm just

announced their electric pick up will be released around the same time as tesla's. >> and how many middle of meshlg pick up truck buyers are going to know what blade runner is, the design, we're told it's super futuristic, what can it tow and is he going to tow a giant falcon rocket behind it tonight? he's got to prove to people this is a manly american truck. >> and execute on -- >> i will say i was impressed, the battery, they will have an on board generate or, if you wi, where you can plug in, say you're an electrician, contractor or somebody, you can go anywhere and plug into your truck and run your power tools all day on that truck. >> all right, guys, one word answer would you drive it >> no. >> would you buy one >> i'm not a pick up truck person >> this could be the one i would want there's our panel there. then there's this, guys.

a digital bank that's raised more than get this, $100 million from celebrities like leonardo dicaprio and orlando bloom is now in some trouble. >> and here he is. >> magically through the magic of television. there's hugh looking spiffy. how could so many celebrities b b contribute to a company like this and have it be a failure or maybe it is? >> failure is premature. this is an l.a. based start up it's called aspiration they have rivers, leonardo dicaprio and orlando bloom involved investors and advisers, but what's happened is that in your latest funding round, post wework, post this skepticism ab about money cash burning start ups that are more risky, that they've run into funding issues. >> so what is aspiration what kind of a company is it and is it okay to put it in the same

breath or liken it to a wework >> let's unpack that you've u heard of chime and other online banks there's a ton of them. that's part of the problem it's been a proliferation of online banks and you have other fen techs opening up checking accounts it's a fairly crowded, basically, they're the green sort of socially conscious version. all the dmoz its are not to have anything to do with fossil fuels. they have esv type mutual funds to invest in >> and by the way, leo dicaprio, he's the one that starred in titanic, right >> great ending. >> just saying there they had, they've been laying employees off and they've been not paying their venders those are two strikes against the company right there when you're say iing gee, are they failing or not >> you read the story. >> all the way down. sfwl so bill's point, they're

supposed to be investing and saving with a conscious. how about paying your bills if your going to have conscious >> the venders are spoke to are insecense ed they haven't been d >> these are targeting younger folks out there who have this more aspirational idea of banking, right in and the whole idea is you're target iing a certain segment of the population is this going to resonate well >> i don't know how big it is, to be honest how many really care about where your deposits go >> it is trendy now to be socially conscious we're seeing it with plant based meat milk people are consumers are starting to care a lot more about where their products are coming from and not just the finished product >> thanks very much. thank you and by the way, don't forget, you can read hugh's full story as bill did. >> as we all did, bill >> on cnbc.com and finally guy, can hbo max compete? some critics are questioning time warner's chances geps the likes of disney plus and netflix

and the streaming wars and earlier today, john malone told david faber that hbo max could struggle to reel in subscribers. >> i really have trouble seeing hbo being able to get the scale to be at the top of the chart in terms of direct consumer subscribers. >> all right, malone also said hbo doesn't have the budget to defend and product its content supply those are some harsh r words from a guy who knows media pretty well. >> r for me when they came out with their price, 14.99 a month, that's right there when everybody else is going down 6.99, 4.99 then they come out with 14.99, that does not speak well they need the money. >> malone is one of the best business minds in h the world. i look forward to david's interview with him every year. what he said is remember when at&t bought hbo, they were king

of the hill. their budget of $2 billion was giant. they had monopoly on the best producers and writers and now that's gone and the ability to keep funding that to keep up with netflix, disney, all the other streaming sss is really going to be tough. not to mention converting the existing h brk o into the new one and adding what they want, 75 to 90 million by 2025 that's going to be tough on ape paper, they look good because you've got the appeal of game of thrones. you have the cartoon network so you have a good variety much the way disney does. zwl here's the funny part. >> have to sell it much harder >> one of dr. malone's points in this process is that they don't have this budget or money to be able to compete. meanwhile i think to myself, wait, they're owned by at&t, right? the most valuable telecom company in america at this stage. >> look at their debt.

>> that's the key. is this a situation where at&t may not give them that kind of resource >> they can't afford to. and they don't have this cheap capital that disney now has and that netflix has had for years >> listen, i think they'll still have to invest in content creation one thing they could do better is advertise in market some popular shows like "game of throne thrones", but also the wire. that was hugely popular. pran os. sex in the city. sort of tap into what you've already done really well >> yeah. >> we'll see bill, rahel, robert -- >> those streaks though. >> i'll keep that main mind. coming up, google implementing a new policy when it comes to political ads on its platform, but it's nowhere close to as tough as twitter's thdeils e taof a move and what it means for users and their privacy. that's coming up innovative companies that will shape tomorrow and building workforce development and tuition-free college programs to generate the talent companies need.

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welcome back google is the latest platform to trace political ads. the tech giant is changing its policy to restrict aud jensen targeting for political advertisers around the world spending is expected to top $1 billion in this campaign cycle, but with silicon valley under intense scrutiny, companies are scrambling to figure out their stances before the big 020 election with us now are sarah fisher, also julia boorstin. thanks to both for being here. yule jewulia, this is something that's been probably expegged for a while. can't have a couple launch without everybody paying attention, especially megacap technology, right? >> absolutely. i mean we have facebook, which said they are not going to restrict political advertising they're not going to fact check it, but they say they are continuing to evaluate hair process here and then you have twitter, which says they're going to ban political ads entirely snap is allowing political ads, but says they'll fact check them

and we just heard from google what their stance is, which is that they will allow political ads, but limit micro targeting so advertisers will still be able to target based on age and gender and even zip code but won't be able to use information about your voter registration or your political leaning so they're trying to have some targeting, but not in a r very narrow targeting though google did reiterate they will not allow false or misleading advertising as part of this announcement, so they'll be blocking or removing some ads which they think are entirely false r or involve deep fake video technology >> so sarah, these are interesting pointing because i wonder whether or not consumers of these products will take those stances into account when it comes to the use of those company's products do you think this cast the company in a better or worse light because facebook does one thing or twitter does another? >> i think that consumers use these products without thinking a lot about the policies they care a lot about privacy.

we've seen a lot of research that shows something that's r more important to them now than it was a year ago but when it comes to things like political ads, if you look at earnings report, consume ers are still spending time on these apps. advertisers are still going. i don't think this is going to change consumer sentiment. what this changes is it puts pressure on facebook from lawmakers and regulators and that's a bigger threat >> who in your mind has the by biggest risk from those regu regulatory bodies? is it alphabet with google facebook, because they're so prominently placed in washington >> i'd say facebook because they have the biggest target but also because they're the biggest platform for political ad spend right now. it's less than $100 million monk all candidates, most candidates are spending more heavily on facebook right now u and that tends to be the case in the beginning part of the elections. it shifts to youtube later so while facebook's dominant now, they're going to have the most scrutiny. >> julia, if that's the case, do

you feel these tech companies are actually worry ied about what's going to happen now because of this particular scrutiny from lawmakers and if so, how are they going to react and how are their communications teams going to get that message out? >> well, look, i've heard from sources at facebook and it's actually, the fact they want regulation and they want regulation particularly about content. what content should be b available and accessible there are rules about political ads on television. they want to figure out the rules that could apply to them i just interviewed the ceo of snap and they said they fact check their political ads. they have a team to do it. the implication is it's not impossible to fact check ads b tu fact facebook is so big, it's so massive, they've been criticized of being left leaning by the right they've been sort of have so many questions about how to address that line that they have to walk about what's considered misleading or false or not that they really don't want to be the ones to make the rules

themselves and that's one reason we've seen facebook lean so far in the other direction of the other tech companies they'll allow everything so i think it will be interesting to see how the honest ads act which has been proposed is considered and how the regulators really see these decisions among the tech companies as influencing their interests in regulate iing this space. >> just a couple of seconds. who has the most to gain from the election cycle >> snap chat snap chat doesn't have a revenue thing at play and to be honest, a lot of these companies don't snap chat's had the best narrative. they got 400,000 people registered to vote evan spiegel has been active about talking to members of the press and how they want to be involved in fact checking. >> all right, thank you very much for those comments. appreciate i a formerer white house adviser and current u.s. diplomat testifying on capitol hill in the fifth day of the impeachment hearings

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it's the fifth day of the impeachment hearings and a former white house official and diplomat are testifying today. we have the latest update. >> reporter: both of those witnesses are providing detailed testimony about conversations they've had and meetings they've been to as they try to foster a relationship between president trump and the president of ukraine. fiona hill, the former official at the unusual security council made it clear she did not like gordon sondland and said she came to question his motives >> he was being involved in a domestic, political ere rachbrad we were being involved in national foreign policy and those two things have just diver diverged he was correct

i have not put my finger on it at the moment but i was irritated with him and angry he wasn't fully coordinated i said, i think this is all going to blow up. >> reporter: this is the final scheduled hearing in the impeachment investigation. lawmakers see this as one of their last chances to build their case on a public stage back over to you next, we'll get read on the state of the consumer and whether they are demanding fake meat from the founder of a new york city steak house. the exchange will be right back. woman: my reputation was trashed online.

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the restaurant example is of businesses set to face major disruptions, rising rents and competition and there's fake meat as well there's no shortage of challenges if there's one positive sign is sales year over year went up more than 3.5% on a year over year basis to help us navigate we have the founder of uncle jack's steak

house chain. talk about whether or not you see the restaurant business as a good indicator of the american consumer and what does it tell you? >> the restaurants are opening everywhere if you look a real estate, retail is down but a lot of these mom and pop shops are becoming an individualized eateries people are eating out more than ever you see franchises, food, burgers on tv. everything is becoming a niche market and smaller stores less employees simpler service, control your course and exkuts your game plan

>> what do they need to do to survive and thrive in this kind of environment >> the number one thing i've done which will be opening about 15 locations in the next couple of years throughout the east coast is delivering great value with high quality priced right and execute the best service you can with the most affordability. >> how do you put that between price and service and where do people pay it? >> okay. when you had service back in the day i had three man teams running the business plus back waiters plus busboys i did away with the busboy i simplified the teams no more runners. you have a more versatile staff. you cut your staff in half but you over train and make sure

every one could do absolutely everything >> here is one thing for you a lot of waves in new york city about peter luger's steak house. >> you taub about the legendary place. they do what they do they're classic at it. there's so many food experts and critics and everybody's opening up and doing steak with so many different ways his opinion is based on his choice people are still loyal they serve a great steak if they opened up today, the way they are now they probably most like would never make it because the consumer is much more educated they are much more visualized, internet marketing, experienced,

coolness, the wow factor all of that is how you have to keep developing new restaurants. >> will we see fake meat at your restaurants? >> no. i love the whole concept of fake meat let them open next to me and let their customers have great experience i do what i do >> all right thank you very much if r that update power lunch begins right now thank you. here is new at 2:00. deal disruption. charles scwab in talks to buy pd ameritrade for what would be a mass ifr deal. the macy's struggle is real. guidance has been lowered. is the future as bleak as it looks? a hots bio stock shares up 60% this year. the ceo will be he