unusual call activity in there today. >> woo >> the industrial sector so we've been seeing some positive data out of china still a little bit choppy but we like what we're seeing there. >> farmer jim. >> i told you roku was by the dip on monday. i'm repeating it again today. >> "the exchange" starts now all right. thanks, scott. welcome to "the exchange." i'm joe kernen here's what's ahead. a dire outlook for housing 2020 it's supposed to be recovering by now from one of the top real estate sites in the country, we'll speak about why lates this low, why there's a downturn plus, when yields were near 3% this year, one strategist went against the crowd and said this won't last 1% as a handle is here to stay well, he was right he'll join us with his next prediction and canada goose's stock has been grounded this past year the ceo is going to tell us his plan to goose the stock. that was not in the prompter

i came up with that. the shares flying again but we begin with today's rally goose. are you allowed to say goose >> this is like a fly eagles fly for jim cramer, right? >> for the jets but not last sunday. >> yeah. something like that. anyway, joe, to your point we've got green across the screen and we're holding right near the best levels of the day so far let's focus on the s&p 500 because we're up about 21 points right now. at the highs, we are up 24 just about near session highs right now. up 9 right off the bat to start the day. so the dow industrials, 200 points to the upside remember, over the last three days prior, we've lost 661 points so still some ground to make up there overall. but still a very nice day for the overall market take a look at one place in particular consumer staples up half a percent. we're going to put a little star up here because there is a record high for this sector of the s&p 500. it is up massively and without a lot of volatility over the

course of the last year. then we'll endhere with a look at crude oil because it's surging. look at this up over 4% after a bigger-than-expected drop in inventories in the united states this past week that's pumping up a lot of energy names like noble up 6%. eog up 5%. and halliburton up as well remember, a lot of these names have been downtrends for a while. but long-term, some negative returns. >> i'm going to see you later i think. >> you got it. >> thanks, dom we begin with a bleak report on next year's housing market diana is live in austin, texas hi, diana. >> hi, joe yeah realtor.com is forecasting a slowdown in the housing market next year. and a potentially record low supply of listings low inventory will cause home sales to drop just about 2% from this year. and home prices, it says, will flatten nationally, as millennials who will account for half of all mortgage demands

struggle to afford already-overheated home prices in some major markets, realtor.com is actually predicting prices to go negative the first time that's happened since the housing crash. those cities include chicago, dallas, las vegas, miami, detroit, st. louis, and san francisco. with home value weakening, sellers will have little incentive to put their homes on the market the only good news in this report, joe, mortgage rates will stay low. >> so many good things i don't get it we got to talk about it, diana i thought low inventory meant higher prices. i'm so confused now. at least we have the author here. >> but they hit a ceiling. hit the ceiling. >> with millennials, they don't have -- they don't do starters they go right into -- i don't know where do they get the money for that without jobs? joining me now is one of the authors of that report realtor.com senior economist so explain that to me. normally, i would think if inventory was tight, which it is because nobody's building, right? then why is there a risk of

prices falling at the same time? >> partly because it's a story of two markets we have the entry-level market where a lot of millennials are active and then we have the upper end of the market. >> i thought millennials weren't active in the -- they -- they bypass some of that and some pretty nice houses they're buying. >> some are. but we look at the numbers, right, we have the largest demographic cohort in history. 85 million of these millennials. >> they waited to do some of these things, right? >> they had to they were in school longer they started their families later. so as a result, we've had this delay. and the supply pipeline. the market simply has not addressed the size of this cohort what we've actually seen in terms of construction is all high-end luxury products which obviously young people can't really afford. so based on that, this is where we're seeing prices basically flattened. is we're running out of product to sell. so if you can't sell it, obviously even with demand, prices don't have anywhere to go. >> as it happens in so many past

cycles, home builders aren't stupid if they see a demand and they know there's a shortage, i mean, after a lag, they'll start building again, won't they how long will this take for the shortage to be alleviated? >> i would expect that to take at least, given the build periods, the permitting which is really restrictive in a lot of municipalities across the country. this could take easily anywhere from two to five years depending on location. >> have you seen a period like this before? this, to me, seems like we come out of 2008. you know, money's obviously more available now. even credit is -- is not as stringent as we were right after that interest rates are very low. mortgage rates are low i just don't understand why these aren't much better or more bullish times for housing. >> well, let's look at the last period where we saw this population boom. the baby boom period. >> that's the last time we saw a population -- okay, boomer. >> well, my point is, you look at 75 million or so boomers, right? which impacted the economy.

>> great people, by the way. >> absolutely. look at the 1950s. housing supply new houses were at every price range. you had entry-level homes brand new. you had luxury today, you have a cohort that's at least as big. it's actually bigger, right? and what do they find in terms of product they have all upper end for new products so the only existing inventory that they can really is the existing home sales pipeline and there, they are basically running out of product a lot of people are in their homes. they locked in great rates they don't want to move. and for a lot of baby boomers, the myth that they were all going to downsize doesn't really play out. >> they're staying longer in their homes. so in the big cities, a quarter of the big cities will see price declines reportedly. >> yes. >> which ones? why? and -- and is there a way to avoid some of the home builders that -- that are more active in those areas? that's probably not your expertise necessarily. but if you were going to buy

building stocks, you should look to where they play, shouldn't you? >> in terms of the cities, we have chicago on that list. dallas san francisco. miami. areas which have really become unaffordable and they've been unaffordable for all but even more so for young people this is the wall they are hitting. it's an affordability wall you made a good point earlier. mortgage rates -- mortgage rates are fantastic. they've been the big surprise of 2019 but at the same time, you look at prices, they've grown about 50% in the last five to six years. incomes have only grown about 20 so they really can't stretch any more so in terms of supply, i look at mid-size cities in the midwest and southeast. and we're seeing migration in that direction. >> george, thank you. >> thank you. >> if you had to pick a neighbor, millennial or boomer i'm just wondering where you come down on that. i like boomers do you >> i think boomers are great they built a great economy. >> all right good thanks i'm not prejudiced or anything i'm just kidding i really am. i'm sorry. i love millennials

i want them all to watch stocks are moving higher after president trump said trade talks with china are going very well the president sounding more positive than yesterday when he said a deal might have to wait until after the 2020 election. let's get more on trade with president of global strategies and james, managing director at capital alpha partners all right, sri, you know, yesterday or the day before, i thought we're headed to two again. 185 then the trade stuff we hit another bump in the road. we quickly went back down to 17 and change you say more of that is to come. we're going to keep the 1 handle and maybe even go below 15 again, why >> i think the trade situation is not going to be resolved, joe. i think that is basically it we have seen this trade deal very quickly happening, not happening. and that's been going on from may of 2018. that's not going to change the big issue for me is what happens december 15th.

i think the president may well have to not impose the additional tariffs because they are going to hit the consumers -- u.s. consumers -- more than china. so the problem is going to be how does he handle it? but longer term, as you go into the 2020 elections, the trade friction is going to continue to remain we have seen that being extended to france, to argentina, and brazil and i think, if anything, it is spreading and that is what the rally in the bond market through yesterday was suggesting to us. >> yep with you, it's -- that's the one key thing we're talking about and that is trade. that's the basis for most of your forecasts, which have been so accurate about -- about the ten year and i don't think -- you don't think a year, two years from now that these ip and -- and any of these technology issues with china are gonna be -- are gonna be settled at that point at best, you see a skinny first-phase deal i think. >> you're absolutely right, joe.

i don't think these issues are going to be resolved even after the next presidential election, there has to be a compromise what we are seeing is the growth of a second economic giant in the world which was used to only one. we have a bipolar world and you are not going to be able to change it. and that, i think, is going to continue to be the issue as we go into 2021. >> well, james, in the stock world, you know, when we have a little bump in trade, we see -- we see it in the ten year immediately. but we're -- we've been at a series of new highs. in the midst of a trade war. so either there's -- there's a big air pocket under the stock market or it's marching to something other than just trade concerns if we don't get a trade deal, can you still be long stocks >> let's accentuate the positive i think we are going to get a deal on usmca. i think that's probably going to pass congress in the second last vote of the year before they impeach trump.

that will be a strong signal for trade but i do believe it's probably all we're going to get this year. i'm actually very worried about the china deal i had been positive. but all the signs from china are that they're backing off they're less willing to do a deal unless trump gives them more tariff relief than he's gonna offer. more than december, it's got to be the september round of tariffs, too and that's just not gonna happen in this white house. i think trump characteristically was giving us a bit of a heads up on that to deflate expectations he can go up and down when he's talking about where things are going. but the reality is he says the truth every once in a while. and there are no positive signs from the u.s. either. >> in fact, you don't think that was posturing for -- for president xi or for the chinese? saying that -- that maybe we don't -- you think that he's preparing people here in the united states for the deal not to happen? >> i think that's likely because when you look at the nato situation, he's talking about lots of things all at once china really isn't on the top of

the agenda when he wants to reassure the market, then he comes back and tells the market that everything is fine. so sometimes it's more accurate to see what trump is saying when he's talking about a topic other than the one you're interested in. >> okay. so -- >> and i would -- i would add to that, joe. the chinese will be better off dealing with either re-elected president trump or with his democratic successor in 2021 there is no reason for them to hurry. president xi jinping does not have elections they have the advantage of patience that president trump does not have. >> so, james, do you stay long stocks or not? make this quick. but, you know, even -- >> i -- i would stay long stocks because the u.s. economy is fundamentally sound because growth is proceeding, though it could be in the three range. we've actually internalized the impact of the first three tariff rounds already the issue was that tariff round number four is probably going to go into place as well.

we'll internalize that on china, you got to look at congress voting unanimously for the hong kong human rights and democracy act. voted last night on a bill to sanction china, possibly sanction china votes like that from congress are having a big impact on the trade talks. >> james, thank you. sri kumar, we'll see you again soon. >> thank you. >> maybe a little earlier in the day. but anyway, thank you. here's what's ahead on "the exchange." coming up. google ceo isgetting control o the entire company as the co-founders step down as alphabet ceo and president but some say he just got the worst job in silicon valley. plus, can a wealth tax actually solve america's inequality issue and bank of america opens up their playbook for 2020. and they've got a surprising take on what's ahead for china

this is "the exchange" on cnbc

the world's biggest tech companies. larry paige stepping down from the role sundar pachai, got it, nailed it the current google ceo will step up to the big chair. investors seem to like the news with the stock up 2% today

but did he just get promoted to the worst job in silicon valley? here with more is cnbc.com technology editor steve kovack he gets -- he gets all those businesses that -- that are loss leaders. >> right. >> suddenly, he has to take responsibility for those but he really couldn't say i want to exit those because he has no voting -- they still keep voting control so what? is he in charge or not >> he still has to answer at the end of the day to larry paige and sergei who have majority stake on the board they said we're going to maintain and be active board members. and all these other bets we talk about at alphabet, those are their pet projects the smart cities the crazy, self-driving cars all that curing deaf. >> that's another one i wanted to focus on. you know, if they need a little more money for that, i think we should do that you know what i'm saying are they getting close >> not even close. but the cfo -- >> they're not close yet you answered me serious. >> yeah. xi was brought in to -- to reign

in those expenses and she's done a pretty good job about it but he's going to have take a serious look at these portfolios of companies we have and how do we deal with this? how do we manage this? >> that's amazing. the business itself, the business that he's been running. there's some issues there, too. >> yeah. >> shouldn't -- shouldn't -- he could focus on that and not take on this other stuff. >> right and i mean he's been running the majority -- keep in mind google is alphabet google generates practically all of the revenue it's where all their profits come from. and there have been so many issues bubbling up over the last couple years whether it's all -- practically all 50 states attorneys generals going after them for anti-trust. whether it's employees in revolt over sexual harassment policies. >> and you can help me here being a millennial a lot of woke stuff. they hired a guy that had something to do with some -- >> he was the chief of staff for secretary nielsen at the dhs

yeah. >> and there was a muslim ban. >> right and he spoke -- he spoke in favor of the muslim ban. and that's why some -- >> but it could be -- it could be -- >> it's a lot of things. it's also being angry about -- >> what about sexual harassment? >> exactly a top executive getting a $90 million payout so there's a lot evof things within the ranks of google. >> such a great business, though that's why it's a trillion -- >> it is slowing down, though. yeah the ad business is -- their growth is slowing. so -- and that -- that's an issue you have to look at. you have to look at how can we offset that? and they're doing things in the cloud. they hired thomas kerian as the head of their cloud business that seems to be glowirowing ni. but of course none of this is near what the digital advertise business generates. >> so what if he says, okay, this is not gonna -- you know, i

want to get rid of this. does he have to clear that with sergei >> he's going to have to go to the board and say we need to reorganize and think about how -- >> go to the board to close down. >> with the dual-class voting structure, paige and brynn have the final say on that kind of stuff and these are their pet projects this is why they started alphabet to begin with they didn't want to work on google anymore they wanted to do these like, fun, side projects and now they're saying it's your problem. and by the way, we've just shielded ourselves as all this anti-trust scrutiny's going to come up in the next year and coming years and sundar, you take care of it. we're just going to sit back in our board seats. >> i think they're 46 or something. >> 46. yeah and sundar is 47 so they're -- you know, they got some years left. they're not millennials. >> no, they are not millennials but i don't know if i'd be so, so involved if i had -- how much -- >> oh, billions. yeah yeah easily and they're -- >> any of those things going to work >> the best bet they have right

now is their self-driving cars that seems to be the business with the most promise. everyone, even traditional car companies are doing that so curing death. >> no, no, they're talking about science to make you live longer. >> i was hoping for singularity. you know, they hired the guy. >> i want that to happen and download my brain. but just in case i still pray. you know, just sort of backup. >> they say live forever but they really mean like live to 400 or something. >> where you'd be so tired of living. >> you want to give up anyway, right? exactly. please, take me. >> jets still won't have a super bowl anyway, thank you. i like having an audience. you know, thank you, steve kovach for more on steve's thoughts on sundar pichai's new headaches. papa jons changed its pizza recipe so did they? or didn't they

we have the sound of the stock by the way up more than 50% this year plus, is this the answer to winning the shipping wars? ups, amazon, and dhl all participating in a new program aimed to ease congestion but will it help them deliver holiday packages on time that's ahead the recession. so, my wife kat and i took action. we started a non-profit community bank with a simple theory - give people a fair deal and real economic power. invest in the community, in businesses owned by women and people of color, in affordable housing. the difference between words and actions matters. that's a lesson politicians in washington could use right now. i'm tom steyer, and i approve this message.

- stand up if you are first generat(crowd cheering)ent. stand up if you're a mother. if you are actively deployed, a veteran, or you're in a military family, please stand. the world in which we live equally distributes talent, but it doesn't equally distribute opportunity, and paths are not always the same. - i'm so proud of you dad. - [man] i will tell you this, southern new hampshire university can change the whole trajectory of your life. (uplifting music) exchange." here are some of the movers this hour shares of viacom, higher on its

last day of trading as a stand alone company. after the close, cbs will officially close and the company will be called viacom cbs. and trade under the ticker viac. expedia shares up more than 6% after the company ousted its ceo and cfo this morning the two executives were forced to resign after clashing with the board of directors over the direction of the company and workday shares are moving lower by 5%. the company reporting earnings that beat estimates but then issued a weaker-than-expected outlook for next year. now, to sue herera for a cnbc news update. hey, sue. >> good to see you, joe. thanks so much here's what's happening at this hour, everyone four legal experts testifying before the house judiciary committee this morning. three said president trump's actions clearly met the definition of impeachable offenses a fourth dissented >> president trump's conduct, as described in the testimony in

evidence, clearly constituted impeachable high crimes and misdemeanors under the constitution in particular, the memorandum and other testimony relating to the july 25th, 2019, phone call between the two presidents. >> it's not wrong because president trump is right no it's wrong because this is not how you impeach an american president. this case is not a case of the unknowable it's a case of the peripheral. >> the trump administration is tightening work requirements for the federal food stamp program the move will slash benefits for hundreds of thousands of people. it will restrict states from exempting work-eligible adults from having to obtain steady employment in order to receive benefits but the change will save $5.5 billion over five years you are up to date, joe. that's the news update this hour good to see you. >> i'm so confused, sue.

they're constitutional lawyers one of them says definitely impeachable. one of them definitely not are they economists? >> that's part of the process, right? >> i don't know. it's going this way. >> we're just beginning. it's just beginning. >> all right sue, that's clear as mud thanks, sue. here's what else is coming up on "the exchange. ahead. the ceo of one of the best-performing food stocks speaks out against its founder in a surprise move, pellaton -- prices canada goose's wings have been clipped over the past 12 months. but the ceo has a new strategy 'sllom again it a cing up on "the exchange." i see an unbelievable opportunity. i see best-in-class platforms and education. i see award-winning service, and a trade desk full of experts, available to answer your toughest questions. and i see it with zero commissions on online trades. i like what you're seeing.

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stories that should be on your radar. it's time for rapid fire here with their takes, dom chu, kate rogers, and robert frank. good morning. >> good afternoon, joe >> all right first is peloton stuff we got -- i don't know peloton announcing it's bumping down the price of a digital membership from about $20 to $13. the pricing play makes sense for the fitness company.

this year, 17 million people used the digital membership without the expensive equipment. only 1.6 million customers have actually shelled out thousands of dollars for the bike. but the stock is falling nearly 6% today after criticism over its new holiday ad all right. so a lot of people are doing the floor exercises. they just subscribe to it and they're getting service. a lot more people than -- see, with me. i don't do any of the -- i don't watch any of the tv. i just have the expensive equipment and sometimes i'll hang a shirt on one side i'll hang like the pants you can fold them over the other handle bars treadmill's very good for the pants. but there is a lot of different attachments. shoes on the -- you know, where you stick 'em -- no. what is with the ad? what is with the ad? do you understand what's so bad about th about that >> guys, you want to take it away >> i will say this i watched the ad like 15 times three more times today after they came out with their

statement. we think people misunderstood. the stock is still down. i kept watching it and i feel terrible because i haven't found anything offensive about it. it was maybe not the most well-crafted ad. but i couldn't see what some of the people were offended about. >> the '90s song is offensive. number one that's offensive. >> everybody on twitter hates everything, right? so should we really respond? >> 8,000. >> and it's like -- and also, inspirational stuff belongs on instagram. like, anything that's inspirational that -- that wants you to exercise more, feel better that's where instagram goes. anything inspirational on twitter is always criticized whether it's wealth or health or anything else. >> it's very expensive equipment. they live in a really nice house. they're already really thin. and it's just sort of all kind of annoying. >> people just said it kind of struck every wrong note with them. >> really trying hard for -- >> for her husband. >> i think if you ask your husband for a peloton. >> that's not how it is in my

house. i'm trying really hard. >> catch up next year? >> i mean, if you asked for a peloton and he got it for you that's fine. i think it's a little cheesy the vlog is an odd christmas gic give to your husband a year later. their fastest growing segment are people who make less than $70,000 a year. >> but they don't have the equipment. >> but if you lower the subscription that you don't need the equipment for. exactly. what's another subscription for someone under 35 we already have so many. >> until they can make an app that can spot me on the leg press or return the weights to the rack, i'm not buying it. >> i thought you were skipping leg day. you told me that. >> no, i never skip leg day. >> you said you skip leg day. >> i do two leg days a week. >> there's seven days. anyway, next up after delay, it's ipo earlier this year source tells cnbc.com that post mates is in talks to find possible buyers.

too many of these things the company's also laying off dozens of employees under initiative code name project 170. it's closing its office in mexico city. remember, the company raised $225 million from private equity just three months ago. what's the problem >> you just said it. i mean, there are multiple delivery platforms and there are almost too many. not only all these restaurant companies competing with one another. all these different platforms are also competing you just heard the grubhub ceo talking about promiscuous diners going from platform to platform. they're giving a ton of discounts out to customers something's got to give here, right? >> so you're a promiscuous taco bell diner, aren't you >> no, i'm pretty faithful i mean, i do love -- i will -- you're right i will have any mexican food. >> so if -- if you were to get delivery from taco bell, what would they actually make off that delivery? five bucks >> not much considering. >> it's just a bad business model right now. >> but you know, here's the thing. bad business models were able to

raise money five or six years ago. seven years ago. what happened now is that the -- the total environment for public or private companies looking to go public or private companies looking to take their valuation to the next step is gone i mean, you cannot say you're an unprofitable business that burns cash all the time and still expect people to say, hey, we're going to give you 30 times ebitda for your company anymore. >> i call it the immaculate correction this could be a correction without a crisis where wework was the crisis but we don't have a 1999-2000 dot com buzz to correct it it's just rationale starts to get overtaken. >> it's all these fat cats you know what i mean and we can do elizabeth warren's work for her make these guys poorer. >> market's working for her. >> one more thing i'll add is it's really tough to find delivery drivers because the labor market's so tight. if you as domino's -- any of these companies that deliver in house, if they team up with a grubhub or post mates, it makes it a little easier

it's all service and it's all seamless particularly works with a lot of these smaller independent restaurants. well, a lot of people will just go to the promiscuous point. >> can you get papa john's >> you can get papa john's. >> that's my -- my really great segue into getting a slice of this papa john's turnaround store in full force. stock up more than 50% this year the man behind the comeback, ceo rob lynch. on squawk box this morning with a list of what he is focusing on for the pizza business here's what he said. >> we're focused on making sure we're delivering our better ingredients, better quality message. while also bringing new types of products and new types of food for our customers. and then we're also really focused on making sure we got the right technology infrastructure to support our business moving forward. >> he doesn't care about the ceo, does he, either you ask him? >> i did so john obviously last week came out and said he had 40 pizzas in 30 days, which is a big -- i'm a pizza lover but that's a big

number he also said the pizza's just t not the same we asked rob lynch today he said same recipe. he's entitled to his opinion we're very focused on our franchisees and our pizza. i mean, investors are obviously buying what he's putting out there. the stock is up about 40% since he was named ceo in august positive store sales this past quarter for the first time in two years. 1% growth but it seems like they're on the right path. they've slimmed down the management team. they're doing some things when it comes to the menu that's not something papa john's has done in the past in old leadership. >> and it's been done before revitalizing something you didn't -- you didn't think could be revitalized with domino's i mean, it's a way to return to your roots, right? >> chipotle's done it, too i mean, you see a lot of new ceos come in and really turn these businesses around so it certainly is possible. >> you knew the taco bell guy was going to do well, right? >> yeah. yeah. >> that was a no-brainer for me. i should've bought the stock that day. >> it's technology

that's -- i mean, perhaps more than what's in the dough recipe. >> i would say this. i think the biggest deal for papa john's was whether or not they were going to alienate their customers in the wake of that whole crisis. and it's all kind of evidence to the contrary customers stuck with them and they're still buying pizza. >> it's taken two years though and now two ceos. >> we could do like an hour called rapid fire i think. i have to keep going and every single time, we're right in the middle of something and they're yelling at me. okay thanks to all of the online bing shopping planes, trains, and automobiles were out in full force to make those deliveries now, bikes are being deployed in that last delivery race. but get this they're part of a bid to reduce congestion on the road we had to get to frank okay frank holland bringing us all the details of this commercial cargo bike pilot program i get so nervous watching these guys in manhattan, frank but at least it cuts down on

congestion >> you know, absolutely right, joe. that's the whole plan. these are some of the 100 cargo bikes you're going to see in new york city streets delivering packages this holiday season amazon, dhl, and ups are all taking part in the program and as you mentioned, the idea is to reduce congestion. the pilot programs focus on the area below 60th street it's the same area new york city will begin congestion pricing in 2021 charging drivers and commercial vehicles to enter that area. it's also about safety and sustainability. >> it's so -- i -- i kind of think -- are you down in flat iron chelsea where are you? >> we're down in flat iron right now. just for your edification, no leg day on these these have electric assistance and pedal assist so you're not going to get a workout. but you will get your package. you have to keep in mind about half of new york city people, they got a package delivered to their house or get a package delivered to their house at least once a week. so a lot of congestion with these vans and cars and different people. >> frank, i guarantee you it's just going to add more congestion because you've got so many packages being dumped on

the sidewalk lined up for delivery people. you've got all the uber cars there's so much sidewalk and street traffic now in that part of new york city and now, this is just going to make it worse. >> i just don't get how this is going to be at all economical because of the things that kate just mentioned about seamless, grubhub, and everything else if you cannot find people to take the job to drive those things, are you going to get people out there to ride their bikes and deliver these packages as well? you're still going to run into the same labor problem in these markets that these delivery drivers always have. >> are these in bike lanes, frank? are they riding in bike lanes? how are they getting around? >> you know, kate, they actually ride on the streets. that's one of the questions asked in the press conference. >> that's going to go well. >> they do ride in the street just like a car. but they can actually park on the sidewalk in some occasions. >> a fender's not stopping a denali. >> those are going to park on the sidewalk >> in some cases, they can park on the sidewalk but they have to be ada compliant american with disabilities act

compliant and not obviously block an entrance for a wheelchair or something else but the idea here is that they kind of go around the city they can get off the street when they need to, bring your package, and then get back on. but it's about reducing congestion and also sustainability a lot of fatalities involving cyclists and trucks. so the thought is if you get a few more trukcks off the road. >> self-driving would be good here too all right. thanks, frank holland. dom chu, kate rogers, and robert frank. i would talk more. but i can't. coming up, canada goose shares down 43% in one year can a store without inventory with a 30-foot glacier wall hook customers? we'll take you inside that store and hear from the ceo next when i lost my sight, my biggest fear was losing my independence. mmm... good. so i've spent my life developing technology to help the visually impaired.

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welcome back to "the exchange." canada goose shares higher today but getting roasted in the last

year amid hong kong protests and counterfeits down now 43% there is one store the company hopes customers will flock to. it's offering a different kind of shopping experience courtney reagan got a peek inside and spoke to the company's ceo. >> the entrance of the store is called the crevice it literally means deep crack in a grasher. as you walk, it sounds as if the glass is cracking under your feet the walls are made to look and feel like rock and you can hear above the soundtrack of the arctic now, you're in the gear room you're going to get a brief explanation of the merchandise and you're going to choose the gear that's most appropriate for you. and how you deal with cold and then you're going to take it inside the cold room now, you're in the cold room this is about 10 degrees fahrenheit but can get as low as negative 4 degrees it's meant to simulate arctic

conditions canada goose does have other cold rooms, this is the only one that has actual snow >> what's really important is the experience and to be experimental and to try new things. especially, in this day and age where as we all know, retail is changing. >> if the canada goose journey store did its job, you'll actually leave empty handed. there's no inventory here. but you can come to one of these kiosks, pick out the item that you like and it can be delivered to your home the same day or the next day if you live right here in the toronto area >> courtney joins me now live from canada goose headquarters in toronto you put a lot of puns in this package here in the lead-up to it, court. i know that's you. is it a multipurpose room? i mean, did you see any steaks like in the corner or is it just to go in and try the -- the coats on? >> that would be great grilling maybe some ice fishing but no, it is just a cold room so that you can try on the coats and see how it feels and i'm

wearing a dress. so i had on some tights. so i was relatively bare-legged going into that room and there was a pretty significant difference between what i felt wearing the coat up top and then what my legs felt like and walking through this crevass area, it's pretty cool it sounds like you're cracking the glass as you're stepping on it but it is a pretty cool experience i do think it's interesting that there is literally no merchandise. if you like the jacket, you got to order it and they'll ship it to you if you live in the area, it'll get to you the same day. but if you live far away, it's ups delivery. >> really good idea to actually demonstrate how it works you know, people buy things they feel and -- and, you know, can actually touch even though you don't have the coats. but that's pretty neat, courtney thank you. freezing huh? get cold watching. anyway, coming up, the wealth tax debate goes on a knew new op-ed in "the

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presidential candidates elizabeth warren and bernie sanders proposing a wealth tax in a sanders proposing a wealth tax a new op ed casting doubts on whether they can live up to their promises with me now, senior fellow at the harvard kennedy school i just wish we'd figure out what we want to do with it. that's where i'm usually lost. you're saying that just lowering the high end might not are a great thing for the economy year all? >> that's right. about 12 different countries had wealth taxes, as recently as -- most of them have abandoned

them they don't tend to raise that much money the cost of administering a wealth tax is it not sitting in a vault. it's working in terms of investment and helping companie hire if you implement a wealth tax and it forces the wellthy to remove their wealth and send it elsewhere we saw that particularly in france then you're just depriving the system and your economy of that kind of investment and money for hiring. you end up reducing productivity and growth >> we all think that in europe, i don't know if it's true. i don't know if it's true number one. but it is easier to move in europe

and we can't do that hear. it will work here. when you describe it that way. it doesn't -- if you're not raising the money, rich people have ways of hiring people to make sure they get around it some other way too, don't they >> we have global translation. the u.s. also specializes in tax advisories to help you delay or avoid tax payments as well i know that senator warren and sander sanders -- that's never happened in the history of quellth taxes. they're worried about the environment, for example it's often with good reason, it creates the incentives -- and,

of course, also wealth taxes, it means that it doesn't consider debt, so it encourages the wealthy to do this it encourages them to leverage up and report it into the exempted areas if there were no exemptions that would be good. the lobbying power, i think that would be formidable. >> keep it up, megan keep saying it loud, make sure you go out in a disguise like you're back in cambridge someone may recognize. how could that really hurt anyone, 2 skrercents, that's wh hear thank you. i appreciate it. >> anyway, coming up, bank of america opens up their playbook for 2020 and they have a surprising take on whas ead t'ahfor china, the man behind that report joins us live next. plans available to anyone with

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bank of america, merrill lynch out with its forecast for 2020 the global economy and the u.s. china trade conflict will have a

cease-fire for more, i'm joined by the grinch himself, ethan harris who invited you on, ethan? i don't even want to talk about this bah humbug >> you're the boss, you must have invited me on. >> i did, i did. slower growth here than we've had recently downgrading global growth significantly. all in all, it's downgraded around the world. >> you look at that story about where we are now, heading into the new year manufacturing sector and capital investment there's a silver lining. in the spring, things will start to bounce back it's not going to be a great recovery, we think this is a cease-fire in the trade war.

i don't think it's quite as dire as you're laying out >> that's good >> trying to sell it by the spring there will be growth i've heard that before >> it does hinge around what happens with china, and that's not a given, i don't think >> no, and i think that the way things are developing, the best we can hope for is some very small deal between the u.s. and china. that will alleviate some of the concern about tariffs in the long run i think many businesses will look through that and say, where are we going to be a year or two from now, still in the cease-fire or is the trade war going to come back after the election >> the other concern is that china is still weakening, and the u.s. economy is showing signs of bottoming out but china's still weakening, they haven't been able to get a handle on this slow down so those kind of shoots that everyone's looking for, looking kind of brown in china

>> people think that our labor market is tight, that eventually, the next move is going to be up if you see this growth slower, and i think you're lowering your inflation expectations why would the next move be up. why wouldn't we possibly see a rate cut next year >> i think cuts are more likely than rate increases. pretty much super glued right now. to get them to hike, they have to be convinced inflation is on the way. they have spent the last eight years to get inflation happening. >> they have a bias. i think a cut is more likely next year. >> beyond that, super glue seat

analogy. we'll have you back in the first quarter and try to figure out, you know, maybe if they get a little -- >> find out if i'm right >> get a little more clarity i'm fine, i think, i checked everything is sliding around, i should be getting out of here. power lunch starts right now >> thank you so much i'm bill griffith, here's what's new at 2:00. >> the dow up 200 points, reversing a three-day slide that was caused by those concerns about the u.s. china trade negotiations can you trust this bounce? a dire housing warning for 2020 and the national association of realtors is seeing a silver tsunami is coming soundses scary, we'll tell you what it means for home prices. later, the crocs comeback. the stock is up since andrew reese took over, he'll be here with us to tell