it's also business but it's still a very cheap stock despite the bounce it's had off about 145 and i think there's still significant upside that's my number one being that i'm in the holiday spirit, i'm going to give another one. trip.com so the old c trip. >> that does it for us "the exchange" begins right now. yes, it does, melissa. and welcome to "the exchange," everybody. i am brian sullivan. are the unicorns getting dehorned funding rounds hitting the low rest level in the year mind the gap look at the growing divide between what ceos and you, the consumer, think about the american economy and there's a brewing problem in the drug industry being caused by prices that are, get this, too low. hard to believe but a very interesting story for you straight ahead all that and much more coming up we begin with these markets at some new highs.

and rahel with those. >> i hate to southbound e soundn record all three averages logging fresh highs. okay you get a record you get a record everybody gets a record. so any finish in the green would set a new record closing for each the s&p 500 is trying for its 25th record close of the year. its 11th in november alone stocks are on pace for their best month since june. turning to the small caps. we're going to turn to the small caps in a moment check out the russell 2,000. it is up about 12% in the past few months but it's still lagging the s&p for the year and finally, take a look at under armor. you can see under armour up right now about 5% so the stock is jumping on an uprate by raymond james. the firm issuing a strong buy rating calling it an underrated, underdog now, despite today's gain, the stock is still down double digits in the past year. brian, i'll send it back to you. >> you know, it's not a problem

playing the same record if the record is a good one, rahel. thank you very much. we'll see you in a few minutes all right. the venture capital industry the private markets. the recent struggles of some high profile companies, wework, uber, they cast some doubt on whether the cash is going to keep flowing in the third quarter, the number of ipos fell by more than a third. their average dollar amounts hit the lowest level since q2 of 2018 joining us know, joe horowitz. founding of venture capital firm icon ventures. also, spent more than 30 years working in the vc industry it's going to be a good conversation joe, i haven't been doing it as long as you have but i've been doing it 20 years and i've seen valuations rise and i've seen valuations fall-let we're seeing the fall now do you think it's a temporary blip kind of a wework effect? or did things realistically get a touch out of hand out west

>> well, it's the perfect question to be asking at this moment in time because the numbers are what they are. we've been watching this excessive exuberance of large amounts of capital being invested in companies at valuations that are unprecedented for some time. we've seen exuberant periods in the past and often, they don't end well so i think this contraction is a function of people's worry about the future as much as anything what typically happens is, in the past, is it takes a real precipitous drop in the financial markets for there to be a true sobering impact. i think these headlines get people to take notice. but when you see the dow drop 500 points, that's when people start to panic a bit because they worry if that's the first shoe and another one will drop to follow. >> deidra, listen, nobody's been

covering uber and wework like you have so tell us what you're hearing are those just two isolated things with a little bit of a halo or are they really going to be sort of these bazookas that cause everybody to get hurt? >> uh-huh. i think joe has a really good point. perhaps the real moment of truth comes when the public equity markets drop because a lot of the vcs i talk to her, they don't really take ownership for wework they don't really think of it as a silicon valley company it's a real estate company that posed as a tech company that's headquartered in new york. uber, lyft, smile direct club. some of these companies that haven't had warm receptions in public markets a lot of vcs say they aren't really strictly tech companies they point to companies in the enterprise tech software space more traditional companies success stories and certainly in that space i wonder, joe, if you would agree, funding still remains pretty good for those companies. especially, with the path to profitability. >> i couldn't agree with you more absolutely the -- the enterprise is still

quite robust if you look at venture capital in a traditional sense in normal environments and who knows if normal is no longer going to be the case because we're either in excessive exuberance or some other kind of environment that is less attractive but, you know, it typically had taken less than 100 million for a company to be adequately capitalized to achieve an ipo. there are great examples of that from palo alto networks, service now and other companies. and they really rewarded all share holders very well. we're in this new era where there is so much capital in the markets that some of these aberrations are attracting enormous amounts of capital. >> too much? >> well, of course too much because at the end of the day, the public has to be rewarded if they're going to go public. >> i'm not going to pick on one company, joe, but it's the big o one. has softbank in some ways kind of screwed everything up for everybody else by paying what many argue would be

over-inflated valuations on companies, by the way, it is bidding only against itself to invest in. >> well, you know, brian, it's hard not to take notice of the elephant in the room so i have great respect for -- he is one of the most brilliant investors in the world but $100 billion entering this system is going to have a huge impact we'd like to think what they're trying to do is really reimagine industries like the transportation industry, like the workplace office environment as examples of that. but real venture capital in the early stage sense, in the kind that we know is more about disruptive plays against incumbents. >> joe, that was very generous of you to say that, you know, talk about massa's track record because certainly, there's some other vcs who will come out and say that massa has screwed up valuations in the valley but i also would argue that he's looking for a different kind of investment he's not necessarily looking for

that sturdy path to profitability. he's looking for the next mega cap. remember what he did with alibaba? that was his, you know, huge success. turned into a mega cap company that's what he's trying to do with uber and wework and certainly, he's not -- his track record right now doesn't look so good but he's trying to get that company that's going to be worth the same amount or approaching the same amount. >> sometimes i feel like if there's a house that's for sale for $500,000 and, you know, three people are bidding 501 and 510. you know, dr. money bags comes in and bids 800,000. you're thinking why couldn't you just bid 550 i feel like softbank does that sometimes. >> yeah, you know, that's certainly true there is that sort of mentality here in silicon valley as well and i think the power has really been on the entrepreneurs over the last few years because there has been so much money in the system and remember, softbank is raising that vision fund, too. so i just wonder without a major recalibration, the equity

markets, does anything actually change >> well, listen, we'll have this conversation early 2020. how about that joe and deidra, thank you very much have a great thanksgiving to you both really appreciate it. >> thank you thank you for having us. >> well, speaking of ipos and valuations, do not miss the nyse vice chairman who will be on closing bell today that show is from 3:00 to 5:00 p.m. eastern and it's pretty good. check it out let's talk turkey about these markets, the public markets. it's been a really holiday feast for new stocks lately. you think, well, new highs, there's no good place for my money, right nope joining us, vice chairman of earl investments and jason brady, ceo of thornberg. let's get to specific. right into some holiday ideas. people can talk about stocks around the table tomorrow. charlie, start with you. everybody here in the new jersey area loses power constantly. is this a big win for genrac

>> we got into generac at the beginning of the year at 52. they make back-up power generators if you live in florida, you know about generac. the great news is that people now need back-up power not just on the east coast but in california and so with power going down in california, the whole market for these back-up generators has just expanded dramatically the stock's gone from 52 to 98 normally, we would never be recommending a stock that's done that well. but the news just keeps getting better new jersey was talking about prohibiting natural gas backups and now that risk has gone away. just a great company. >> thankfully it is because i just threw one into my own house because i'm tired of losing power. jason, when i saw you were recommending an oil and gas company, i thought this can't be right. but you say there actually is value in royal dutch shell

>> look, i think in this environment when they're giving away new highs like participation trophies and you're looking for value, you need to look for cashflow generative businesses. typically, oil and gas companies haven't been that. they spent a lot of money on cap ex well, some of that cycle has changed and real dutch shell is giving you a six handle yield. so for me, real cash flow from an investment in this environment, an environment where you've seen all those excesses in private markets both in debt and equity, that's something that catches my eye. >> the one thing we talk about is low rates all the time but one angle we haven't talked about is the positive investment on many of the investment firms. private equity banking. et cetera. and that is one reason, i assume, that you like lazard. >> yeah. brian, you and i have talked about kqr and blackstone forever. those were partnerships that couldn't be owned by the index funds. then the ownership of those companies converted them into

c corp. it's one of the leading asset managers in the world. it has an m and a business that's a little soft because people worrying about brexit stock trades ten times earnings. it's a partnership so it can't be owned by the s&p 500. i personally think some day they're going to convert into a sea corp. >> i know you like j.p. morgan chase but that's a name we talk about all the time in this network. i want to focus on another europe-based company you like and that is french cell phone company orange. >> that's right. look there was some recent this morning some potential mna news, that's not our thesis at all i'm not sure that's really something that's going to happen i'm skeptical of that. but if you look at this company, again, cash flow generative, four handle dividend yield, and a six-handle ebd multiple. these are good valuation metrics

for a steady business that's pretty unloved and if you're looking to get some value outside the niedunitd states, i think this is a really interesting place to look. >> we like it. both specific ideas. you both have a happy thanksgiving take care. >> thanks. >> there is so much left to do on "the exchange." here's what's on deck. coming up, mind the gap. the spread between ceo confidence and consumer confidence is getting wider and wider. we'll explain. plus, apple may already be benefitting from the holiday rush and instead of california dreaming, it looks like it's california leaving bc"t ehae"n hexcng o cn for online u.s. equity trades and etfs, plus zero minimums to open a brokerage account. with value like this, there are zero reasons to invest anywhere else. fidelity.

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massive charles schwab trade was something stunning it says it will move its headquarters to a dallas texas suburb perhaps no financial company is more closely associated with schwab san francisco's been its home for 40 years even that, couldn't keep its company there. it joined other headquarters, by the way. leaving the golden state for texas. what's wrong with california joining us now is joel kock and he is presidential and urban futures. i want to show our viewers

something, joel. it's not dispositive of anything but this if you wanted to rent a u-haul from san francisco to dallas, it will cost you nearly four times more than the reverse trip demand not the only reason but certainly a big part of that by the way, my family, i was born and raised in los angeles we left california for better opportunities, cheaper housing, et cetera. so i know this flee. but california's always been a fighter. do you think this is a long-term trend that is here to stay >> well, the trend of out-migration of people has been going on now for about 20 years pretty consistently. gotten worse recently but it's still there. the movement of companies, i think that's begun to accelerate california's taxes are now much higher than they are in the rest of the country, which was not the case before. the state's regulatory environment is very, very difficult. if you're dependent on energy, you're paying about 50 to 100%

more than you are in neighboring states so a lot of companies are just saying, look, california's beautiful. it has great weather it's a trierrific place to live. but from a business point of view, it just doesn't make sense. >> yeah. and you've got other problems. listen, california's always -- the weather and beautiful beaches and great people but now, you've got forest fires, wildfires you've got rolling blackouts but the government seems to be going in the opposite direction. more regulation. perhaps higher taxes is that just the wrong way to go when you're facing these other things that the state is now facing >> well, part of the problem is the state of california, particularly governor newsom seemed to believe that about five or six tech companies can take the whole economy and those companies have such enormous resources that they can withstand this what he doesn't quite understand is that many other businesses can go elsewhere we have lost some of our best companies. we've lost our engineering companies like parsons and

bectal that have moved out we've lost most of the headquarters of our aerospace companies. these are companies that employed middle and working-class people and they're not coming back. >> yeah. >> and -- and as -- and for service businesses, like schwab, the internet, you know, can -- you can play it both ways. you can say, well, the internet helps california because the internet companies but on the other hand, it makes it very easy for a company like schwab to move to dallas and the customer's never going to know the difference. >> i forgot my aunt was a secretary of grummon for 30 years in los angeles it's like you forget all the defense companies used to be based in l.a they're all based now around d.c. of course, i think that's different. but this schwab headline i think sort of took everybody aback they're still going to keep a big presence in san francisco. they made a point of that. they said, listen, we've been home here for a long time. we're keeping people here. but the functional headquarters is now going to be in dallas

it's pretty amazing story. >> it is amazing and as -- as you know, schwab, like bank of america, like many of the companies that have left, are intrinsic to the identity particularly of california and particularly the bay area. and when you give up that heritage, you're going to lose a lot of philanthropic contributions and a lot of very talented people are going to say i'm going to go someplace else particularly, younger people. >> yeah. yeah we're going to see what happens. listen california's always survived but joel, thank you very much. good discussion. have a great thanksgiving. appreciate it. >> you too thank you. >> coming up, if you price drugs too high, patients can't afford them you know that. but did you know that if you price them too low, sometimes patients can't find them we'll take a look at the growing problem of drug shortages in this country ahead plus, bad enough the elderly get targeted by cyberscams more than any other group

another problem that many of the law enforcement solutions to help them are falling through the cracks we'll talk about cybercrime and senior citizens next on "the exchange." yond the not-so-routi. comcast business is helping doctors-so-routi. provide care in whole new ways. all working with a new generation of technologies powered by our gig-speed network. because beyond technology... there is human ingenuity. every day, comcast business is helping businesses go beyond the expected. to do the extraordinary. take your business beyond.

welcome back cybercrimes targeting the elderly are on the rise. the cost really is staggering. in total, older adults lose more than $650 million every year to online frauds. that's according to a new study. joining us now, kate from

cnbc.com technology reporter kate, we don't want to overly gen ri generalize groups. but in general, this group, cyberhackers, they love it they get targeted. >> it's actually kind of a misconception, brian, that it's because seniors might not be tech savvy in fact, it's actually just the simple fact that seniors have more money they have more bank accounts they have brokerage accounts they have retirement accounts and pensions and these are the kinds of accounts that are being targeted the more there are, the more complexity there is. the more parts there are for a cybercriminal. >> so they're not being targeted because they're more vulnerable. they're being targeted because they're richer okay, boomer. >> so i know a lot of people don't like to talk about politics around the thanksgiving table. so this is actually -- >> hold on, stop, kate i'm going to look at the camera. don't do that this year in particular don't do it. you'll ruin everything back to you, kate. >> talk about cybercrime instead. you know, tell grandma to be

constantly vigilant. that's what she needs to know. >> what are some of the tips people can use and what are some of the projects and products that are being used to help senior citizens fight this >> so there are a couple of different tips that a lot of people recommend particularly, that seniors open up a dialogue with people in their lives now about this stuff. make sure that if you have any senior citizens in your life, older adults, that they know that falling victim to one of these crimes doesn't mean you're stupid or incapable of anything. a lot of seniors in a recent survey said that they felt -- they were concerned that their loved ones might think that they were losing it or something like that if they reported being approached. >> yeah. and let's be clear i mean, the irs is -- and i -- i'm sure you get them. i get them these voicemails like, hi, the irs needs your social security. the irs is not calling you the irs is not sending you an e-mail they will send you a letter generally. if somebody gets something

that's asking for very vital information. i guess a good rule no matter how old you are, kate, don't give it to 'em. >> that's right. it's -- just hang up any of those robo calls i think most people know that but you'd be surprised how often. >> they must work otherwise they wouldn't exist i assume. right? >> absolutely. i mean, they're kind of like the walmart of cybercrime, though. it's just a vast spread. they send so many out, if five of them work, they get something for it. >> i know it can be harder because it doesn't matter how old you are. remembering 100 passwords a pain in the you know what but don't use the same password for a lot of things. >> it's absolutely essential also, a really important thing you can do if you are handling a lot of money, if you have a bro brokera brokerage account and you wire money, set up with your bank to voice verify with you whenever you want to do a transfer. >> what does that mean >> it means have them call you to say, brian, did you send this wire because a lot -- what will often happen, a criminal will break into somebody's -- their attorney's e-mail account. say, brian, you need to wire

this money for your home purchase, for instance it looks like your attorney and you just do it if they call you, then it won't go through. >> all right good stuff there real-world advice. big story. kate, thank you very much. appreciate it. >> no problem. >> let's now find out what else is happening in the world outside of money and business. sue. >> thank you, brian. and here's what's happening at this hour, everyone. after a two and a half week manhunt, u.s. marshals say mari marine deserter michael brown. he's been charged with second degree murder. he is accused of killing a man described a described as his brother's boyfriend. michael flynn, who pleaded guilty to lying to the fbi the hearing had been set for december 18th. both flynn and federal prosecutors requested the delay citing the expected release of the doj inspector general's report on the fbi and fisa and the alabama supreme court has upheld a state law barring

cities from moving or altering confederate monuments. the justice is reversing a circuit judge decision that deemed that law unenforceable due to freedom of speech u.s. auto sales for november are expected to rise 4% from a year ago. that's according to jb power and lmc automotive attributing to strong discounts and higher consumer spending you are up to date that's the news update this hour brian, back to you. >> will there be the new lexux with the giant bow on top underneath the herera christmas tree this year >> no, there will not be. >> who are those people by the way is th w way? is that a thing? >> it must be. it works they sell cars. >> i feel terrible about myself as a father and husband. sue, thank you very much here's what else is coming up on "the exchange. ahead, some good news for apple ahead of the holiday season a new problem is simmering in the drug industry. and it's stemming from prices being too low.

this election season, what industry is getting a break from criticism and you won't believe what it is and toys are us is making a comeback sort of it's all coming up on "the exchange." ♪ at cdw, we get that trying to simplify data storage can get very complicated. but cdw will assist your needs and implement a dell emc unity xt all-flash unified storage platform. it delivers speed and efficiency, while providing simplicity and flexibility. for unified storage platforms, you need dell technologies, and it orchestration by cdw.

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all right. apple, axios, soccer, and jeffrey the giraffe. all big topics in today's rapid fire here now entering the cauldron, rahel solomon, robert frank, and contessa brewer. are you guys ready >> toasty in here, huh >> it really is. first up, apple. apple's under pressure to deliver one of the hottest products by the holiday season the nikkei asian review reports that apple is turning to china for help they want a double production of the airpods pro wireless ear phones 88% for the january 3rd low. remember, that's when the stock plunged 10% after they cut their first quarter revenue guidance but this is genius of tim cook he tours the texas plant,

robert, with trump look what we're making in america. by the way, we got to make some stuff in china, but that's okay, right? genius. >> also genius are just the airpods themselves i mean, here's an idea here's an idea we'll just take off the wire boom we've got a product -- >> make it easier to lose. >> yeah. that by next year, they're going to sell 80 million by the way, i've already had four and i'm going to need another pair for christmas because i just lost another pair. >> i went back to the hard wired. i like the product but i keep losing them. i'm like i'm done. >> but investors should really like this because of course iphone sales have started to plateau. so folks who are looking for can apple sort of create a new product that'll have high demand and apparently it looks like, you know, these airpods are pretty popular. >> what does it say, though, about their logistical planning, the supply line and all of that that they've run out by christmas? i mean, christmas is your hot time it's when everybody is looking for a 179, $259 gift for their loved ones and they don't -- i

mean, you know -- >> 259 getting a little bit worked up just because demand outstrips supply because it's more popular than they thought. why you got to slam apple all the time >> i'm not slamming apple. i'm just saying clearly there was a lack of foresight there. target, walmart, best buy still have them in stock one more thing. >> i know your father-in-law's in the control room so this segment's going to be very interesting. >> i don't want to say too much because then he'll know what he's getting for christmas. >> is he getting airpod pros next up, new analysis breaking down the so-called corporate hit list for presidential candidates it's list of the usual names amazon, facebook, walmart, mcdonald's even, and gm make up almost half the companies mentioned. the ones spending the most on lobbying so far this year are, you guessed it, facebook, amazon, alphabet basically the same list. one interesting note, not a single bank in the top ten on the list after being the number one target in 2016

well, apparently, slamming apple is not just a contessa brewer thing. >> big tech is under attack. what i think is really interesting -- except for apple -- the diplomat in chief tim cook but what i do think is interesting is amazon is one of the few companies that actually fights back. they'll get in the ring and when they are called out, they'll try to set the record straight at least from their point of view walmart we've seen them push back a little bit, too but yeah, for most of these companies when they're targeted, they kind of mum is the word, right? they kind of just like stay quiet. but amazon, if you come for amazon, amazon is gonna come right back for you. >> can i just point out though that here you have, i mean, especially bernie sanders and elizabeth warren getting called out all the time for pointing fingers at corporate. >> they use social media aggressively. >> wait. trump has 67 million twitter followers and guess who is number three on the list for calling out companies? donald trump. >> yeah. so they use it. >> not just a progressive

politics. >> but they may keep quiet but to rahel's point, they are quietly paying those lobbying firms a lot of money. >> yeah. it was interesting the two issues th issues that dominated this list is they got called out on taxes and the second one was living wage so those are the two issues that really seemed to get under people's skin. >> but trump never talks about that. >> democratic primary where warren and sanders together made up half of the total tweets by all the candidates it was really taxes and wages. that's what matters. >> up next, the owner of the premiere league, that's the british soccer league's, manchester city is selling, get this, a 10% stake to silver lake, an investment firm, for $500 million 10% for $500 million do the math. it basically values man city at $5 billion making it the most valuable franchise arguably in professional sports probably alongside the dallas cowboys i mean, contessa, as you know, i

mean, man city was terrible forever. and the last ten years, they've been great $5 billion they better hope they keep winning. >> you -- you're right i care about this story. >> i know you do. >> and you want to know why? number one -- >> because you're an everton fan? >> no. no, i'm not. in 2012, rial madrid was the only sport franchise in the world worth more than $2 billion. today, according to forbes, at least 50 sports franchises are worth more than $2 billion and you want to know why lucrative media deals. now, every nfl team is worth -- every single one -- is worth more than $2 billion there is a lot at stake here and in the united states, you can expect to see those numbers rise as sports gaming gets more widely adopted. >> robert, so this is your area of expertise well, is this the ultimate asset class? i mean, it's the ultimate prize and as far as i know and i may be wrong out there and i'll admit it when i am. >> brian sullivan wrong?

gasp no sarcasm at all. >> hashtag sarcasm okay is -- i forgot my train of thought. ever go down in price? >> they -- they -- they haven't until they do. and -- and the issue, first of all -- not yet not in a big public way. but what we should say here, we should be clear about they're buying a stake in cfg, which also owns teams in the u.s. and japan. all around the world spain. so it's not just the club, manchester, that's getting this valuation. it's the entire group, which includes a lot of teams. they're building a stadium so they bought a stake in a company, not the club. >> so by doing that, you can inflate the value of your other clubs. i think softbank tried that. >> but do you know so the top most expensive, most valuable teams in the world, number one, the cowboys. number two is the yankees. >> do you think the cowboys are worth more than $5 billion >> but number three, number three, you know what the third most valuable team in the world

is rial madrid. so it's -- it's -- you nknow, these teams have gone up in value. they're worth a lot. it's mainly because of the monopolies the teams are. >> just to your point about the asset class, we are starting to see more billionaires sort of take an interest in some teams, right? there was a report a few weeks ago. we talked about it on wex i believe about jeff bezos potentially eyeing the seattle seahawks it was in the post we'll see. >> liquid market and it's such a strange market, it's hard to tell whether it's truly an asset class. >> it is i just hope if bezos can do something by the way, bring back the supersonics. we need the supersonics back in the league where they belong sean kemp. all right. finally, speaking of back, toys r us back for the holidays we're joining by our own courtney raeg courtney reagan. courtney, is this a rebirth? is this a rebranding is this a whole birch compadiff company? what is this >> it is a whole different company.

so, yes, you might remember we covered it fairly extensively as did many others that toys r us did file for bankruptcy. couldn't successfully reorganize ultimately, liquidated but here i am standing in a brand new toys r us. so what does this mean well, it's a brand new company and a company effectively did just that. they bought the brand. the toys r us brand. the jeffries brand the babies are us brand. and then they are trying to sort of reimagine the whole thing so there were 800 stores this is now just the first of a planned ten stores a second store will open in houston next week. this one just opened today just in time for black friday. thanksgiving but no door busters here actually, the store isn't even open tomorrow on thanksgiving. so it is a whole new concept much smaller than the original about 6,500 square feet. the original, around 40,000 square feet. there's sort of vendor shop and shops. names you know, hasbro, v-tech there's a small mattel barbie

section. >> who owns it >> it's true kids which is the parent company that owns the brand. it's licensing company that then licenses out the name and true kids is backed by lenders, private equity, a whole group of different people and the ceo of true kids is the former chief merchant of toys r us so he knows a little something about toys hopefully, has learned from some of the mistakes that didn't work for the original toys r us and is bringing things back in a new way that's meant to be much more experimental, much more hands on like let the kids play with the toys. >> isn't this what happened with them they shut down a bunch of stores then they bring back one. >> i think it was fao schwartz i don't think there was a t. >> i used to tell my kids it was a toy museum

nothing was for sale so they wouldn't want to buy it. >> genius. >> so expensive. exactly. so they always thought it was a toy museum until they learned later that people could buy stuff there. >> well, listen, if you got kids, toys r us is kind of a fun place to go. i'm glad to see it back. it looks busy behind you as people kind of walk behind you and look at the camera like bha what's this? but is there a vibe that this can make it for real this time long-term? >> i mean it is interesting. look, it's not going to disrupt the toy landscape again especially with only ten stores. and while there is a website, if you click all the way to the product page and say you actually find a product that you want to buy, you get redirected to target.com which is actually the company that's fulfilling the orders so it's very ironic that target was really one of the retailers that really benefitted from toys r us's demise. picking up somewhere between 15 to 20% of that market share according to credit swiss. and now that toys r us is having this sort of resurgence in a new

way, target is still benefitting because they're fulfilling the ecommerce orders. >> amazing listen a nice holiday story and you got the grinch behind you. my heart grew two sizes too big on this segment. courtney reagan, thank you very much rahel, robert, contessa. thank you all. >> who won >> contessa's father-in-law because she's got -- i don't want to screw things up for thanksgiving for you all right. coming up, the list of drug shortages in the kouncountry is growing and the reason the prices may be too low. it's called market failure we're going to talk about how it happens and how big of a problem it really could become it's coming up next. od is here. the time to choose your medicare coverage... begins october 15th and ends december 7th. so call unitedhealthcare and take advantage of a wide range of plans with a variety of benefits... including an aarp medicare advantage plan from unitedhealthcare. it can combine medicare parts a and b, which is your hospital and doctor coverage... with part d prescription drug coverage, and more,

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real thing. >> there is a real sense of bitter irony with this story the drug is called bcg and for a cancer drug, it's pretty inexpensive. $157 a vile. merck was the only company left making it. and though it's been in shortage off and on for years, merck says it wouldn't be the responsible thing to do to raise the price but many wonder if raising the price would allow merck to ramp up manufacturing we asked ceo ken frasier that question back in june. >> when the prices of drugs get too low, particularly drugs that are generic drugs, then you don't have a market incentive for people to put the capital up to build facilities like we need for additional amounts of this bcg drug so for merck, the challenge is how can we maximize the amount that we can make for patients given the fact that the other two companies have now dropped out of the market? >> and for comparison, merck's blockbuster cancer drug keyturda is priced at more than $13,000 a month. >> i don't think it would be too

much to ask for them to put a little bit of that money into a new facility because they have a moral obligation they're the only manufacturer of the product. >> so the question, brian, really is how much can you ask of profit-driven companies when it comes to a moral obligation to make drugs that potentially lose money or at least don't make them very much money? especially, compared to bigger, newer blockbuster drugs. >> is there a perfect pricing? does that exist? >> that's a good question because companies are criticized when they have prices as high as keytruda, say, which can be up to $150,000 per year but merck says they plowed that money back into r and d and when you have a drug like bcg which is just $150 a vile, not enough companies want to get in and make this. >> do you think companies need to do a better job of telling the public how much it cost to produce the drug does it make the price any easier to digest but i think having the transparency on the cost might be a smart move by these drug companies.

>> they do that to some extent and of course they factor in the cost of failures in their pipeline as well but companies don't price based on how much something costs to make they price based on where the market will bear and often that's a lot more than what it cost to make the drug. >> great points. good story thank you very much, meg coming up, the stock market has been hitting some record highs so why dce so oseem so anxious about next year? that's next. when you shop small you help support your community - from after school programs to the arts! so become a regular, more regularly. because for every dollar you spend at a small business, an average of 67 cents stays in the community. join me and american express on small business saturday, november 30th, and see how shopping small adds up.

well, the stock market may be hitting new highs nearly every single day but there's anxiety in the corner office. apparently, there's a disconnect between ceo confidence and consumer confidence. here now to explain what's going on is hu sung for cnbc.com consumers, it's come down a bit but consumer confidence still generally very high. but what are ceos telling bankers and you about their concerns for next year >> so, brian, you would prices today would be jubilant it's just the opposite a concern about the geo political risks. concerned about the election, what that could do

concerned about trade war, it could spill over and escalate, what could happen if the longest expansion period in history slows down they're planning for a rough year at one point. >> if you bring home a's in high school every quarter or every semester, the only place to go is a plus. the stress to keep that a has got to be high you come in as a d student you have a lot of up side, i'm told. >> in 2020 you're looking at a situation, a lot of these companies are sub scale. we're looking at the 500 million to 500 billion annual revenue. if grej is tepid, what can you do instead that leads to a lot of discussions with jpmorgan bankers about potential tieups >> they can sell or they can buy. >> exactly scale up >> what do you think they're going to do? >> it's a two edged sword, stock prices are at an all time high we're hearing from business

owners who are saying, you know what, i like this multiple, i'm going to wait a little longer. >> to sell >> yes and i'm going to see if i can get even more. a potential catalyst, if you see someone who has emerged, and if they're more of the warren ilk, the sweeping structural changes to regulations and taxes, there's a chance that a lot of these business owners will say, this is a catalyst >> it may cause a flurry, i guess. of private equities that come under attack some of these new policies may dramatically increase private equity activity in a short window of time >> you can see unintended consequences >> are you saying there's unintended consequences to massive structural and legal changes? >> it's been known to happen >> that was sarcasm. this is a great article, up on cnbc.com, i assume >> read it online. >> but not while driving a lot of people sitting in traffic right now. thank you very much. great stuff. >> coming up, a new app that

leverages artificial intelligence to change the way you shop it's pretty cool the woman who created it joirns us live next i'm happy to give you the tour, i love doing it.

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anywhere from 4 to $8 million on influencers this year. there's a growing movement trying to exert a little counter influence. see what we did there enter counter. a new app that aims to turn online shopping into a more social experience. you look at a picture, i want that what is that >> i'm trying to do my best -- >> thank you. >> so exactly how does it work did i get it right you can wear a look? we have a pictures of me that's mocked up, you can say, i want that jacket, that tie, or at least some semblance of those things >> counter is a part of shopping, we enable anyone to upload their outfit.

>> notice how thin i am. >> sexiest journalist shot but we know people want to know, what are you wearing we're showing your outfit and you can buy the suit so we're picking a number of products from all brands we have on the platform and being able to show a range of high, medium and low products you can have. >> do you guys just make a guess 1234. >> we can match the exact item you might be wearing or we're suggesting items. there's also ways for you to tag the actual item. if you know i bought it from brooks brothers, can you go through the app and do that as well >> we had the advice co ceo on

yesterday. why does this do what other apps it don't do? >> really, the part about counter is, we wanted to give people the ability to share what they're using. we're giving those tools to anybody to create that contact and make it more shopable. >> is it going to turn into the kardashians and jenners and everyone else? you have 100 million followers or 7 can you make sure it's more organic? >> yeah, that's what we're looking to achieve first and foremost, we can't stop influencers from coming on the platform, we know people want to be able to shop their content and recommendations, counter is really about the person who has 50 followers, but might be the best advocate for nike 3r0k9s. that's all they buy and that's all they talk about. we're really creating that

experience and giving people the ability to discover -- >> those are some of your partners, what do they think about it >> a lot of our partners are excited. we're creating a customized experience for their customer, right? every store on counter is personalized to the individuals. we have hundreds of retailers, and when you go and buy brookes brothers on counter, it's going to be personalized to you. it's a virtual assistant that learns more about you over time. >> does it recommend to you anything >> yes, it will. >> so even if you're using it in posting, you can get recommendations for you? >> exactly >> from you? >> yes >> all very meadow >> there's two sides to it, we have the social experience where you're able to discover stuff, and then we have a one stop shop that really is just for shoppers, right? you may not be in the bhood to discover from other people you just are in the mode of the shop >> we have to go thank you very much. >> thank you >> have a great thanksgiving

power lunch begins right now thank you, brian, stocks are slightly higher. we have the 10e-year yield at 1.76 right now diana olick is in washington with the fed's beige book reading. >> reporter: moderate economic expansion. the main theme of this beige book until manufacturing, les optimism in atlanta with contacts still mentioning trade policy as a down side risk to their outlook. new york was the only outlier, reporting little to no growth in the economy. overall, most districts reported flat to higher home sales with more growth in construction. the district was a standout with very strong home sales despite weakness in the energy sector. employment rose overall. with scattered reports of labor reductions i