listen, business is tough. at a personal level, i'm fans of mark and alan. i'm friends with mark and alan the reality on the ground is the company hasn't performed the board took steps we think is important to put new leadership in place. >> appreciate you so much being here, helping drive our coverage today from out at 1 market that does it for us. see you tomorrow "the exchange" starts now. scott, thank you very much welcome to "the exchange." i'm tyler matheson on a monday here's what's ahead. the longest economic expansion and bull market on record has some people asking just how late in the cycle are we? we'll break down the areas that say we're only halfway through it potentially and those who are screaming that we are in extra innings in this game plus, an exclusive interview with the new viacom cbs ceo, bob bakish his visions for the company, take on the media landscape, and the content wars. plus, a huge win for netflix

in hollywood today that has investors smiling. jo we begin with today's markets and dom, who has the numbers. >> we have a narrow range today. it is red across the board near session lows. we could snap a three-day winning streak first down day in four dow industrials is down. at the highs of the day, s&p 500 was up two whopping points lows of the day, we were down five seven-point range is what we've seen all day the wait and see mode, maybe u.s./china trade showing up. markets showing signs of life, just about flat for the day but the russell 2000 overall is here, near a 52-week high. those who have been waiting for the small caps to pick up and catch up, they have been seeing it of course, a lot is being helped along by big deals in pharma you can see, synthorix up 175%

sanofi is buying them. arqule up 103% because merck is buying them. i'll send things back to you. >> dom, thank you very much. we are, as we noted, in the longest economic expansion and bull market on record. is this as good as it is going to get is there more room to run? depends on what indicators you look at. mike santoli joins me live with the story. take it any direction you want, but i was interested youed a dre addressed this topic with roger altman a couple hours ago, and his answers were interesting. >> absolutely. tyler, obviously, we know we can't entirely gauge when a cycle is going to end by the chronological age. right now, the signals within it are mixed. first of all, there is an inherent trade-off between a slow recovery, which we've had since 2009 and expansion, and a long one i think the length and

durability of this says something about the fact it's been relatively plotting it also depends on what parts of the economy you look at. there are things that look, at least on the surface, to be late in the cycle employment, 3.5% unemployment. how many better can that get consumer confidence at high levels recently but seemingly has peaked and flattened out corporate debt is at record levels car sales also peaked a few years ago. all those things would suggest, okay, it is getting a little late in the game other stuff does not look nearly so mature. the housing market was very, very slow to get moving a few years ago. now, the supply/demand dynamics are making it look earlier in the cycle. benefitting from demographic trends debt at the household level doesn't look like it did before previous recessions. corporate investment, you can't make the case there has been an overinvestment in this part of the cycle from corporate buyers. all that means it is kind of

mixed. i defer a little bit to how the markets have behaved we've had sort of three near miss slowdown scares oth s overe last ten years markets went sideways for a time 15% to 20% pullbacks now, we're pulling out of one of those. >> as we bring in the chief investment officer, jeff, always good the see you i think you were in the camp that despite the bull market, despite its age, the economic expansion, despite the streak of years of growth, can continue. why do you feel that way >> sure. you know, generally, the market, equity market drops on recession feels and, you know, overdoing things, having to bail ourselves out, so to speak here, the economic expansion is running along right at potential gdp. potential gdp of the u.s. is simply growth of the labor force, around 0.6% aed to that productivity, about 1.5% 2.1% we've been growing around 2% to

2.5% as long as we operate within our capacity, we should be able to grow indefinitely. i do think that we did have, you know, a scare when rates went up late last year, and i do think that's probably the biggest risk that we run as an economy and a market something that would cause rates to rise, that could pull the rug out from what we're doing. >> you don't see that anywhere on the horizon the fed meets later this week. i'd point out, not only has the fed cut interest rates, but central banks and governments around the world have been stimulating their economies monetarily and fiscally. and the fedex up and down xpands sheet. there's a lot of cash in the system. >> $1.4 trillion government digit deficit to add you have a lot of stimulus in the system yet, were not seeing much inflation. i think, you know, there's a lot

to be said for that. now, you know, of course, we mourn the passing of paul volker, who was america's guardian against inflation let's hope that this isn't a watershed event that now starts to turn inflation the other way. >> so, michael, if conditions are as favorable as jack suggests and, i don't you know, there's a divided jury here on these things, if conditions are as favorable as jack suggests, why are investors, individuals, taking money out of funds? >> it is a good question, tyler. there's not been a sustained level of enthusiasm by retail investors for the bull market. maybe a little in early 2018 it reversed quickly. i read it as a little bit of long-term factors. for example, a lot of money right now as we know is in these passive asset allocation strategies with the market up as much as it is, the stock market, a general gravity of rebalancing the portfolio means you're pulling money from traditional equity

funds almost on an ongoing basis.ographic aspect, too. we're battle tested, i think, psychological. based on not just the last ten years because we've had the scares periodically, but because of how badly the '08 downturn was. all that to me says there is an undertow of retail funds kind of lightening up in the equity market i would say other measures of household exposure to stocks is still pretty high. it's not as if they've abandoned the market. >> gentlemen, we have to leave it there always great to see you. thank you. >> thanks, tyler. >> you bet. it's been a long and winding road to get there, but viacom and cbs are officially one company again since completing their merger last week shares of the new company down more than 3% since they began trading as a consolidated enterprise on thursday what's next for the company known as viacom cbs and how well-positioned is it in the streaming and content wars let's go straight to the man in charge viacom cbs president and ceo bob

bakish, live with david faber. all yours, david. >> tyler, thank you. you raise a lot of great questions. bob bakish is our guest, ceo of viacom cbs first time i introduced you that way. >> great to be here. >> good to have you. congrats on getting the deal done relatively quickly in terms of once it was announced it did take a while to get there. let's get to your presentation which took place here at the ubs conference key news items, a couple you mentioned that you are looking to potentially sell black rock, which is thought of as the former headquarters of c cbs. why? >> look, viacom cbs is a tremendously exciting opportunity for shareholders you look where the stock is trading. one of the lowest multiples in the s&p 500. clear discount versus intrinsic value. peer groups, et cetera a lot of value here. there's no question we're going to go and unlock the value as we move forward operating, whether that's stuff we're doing in the content side, the commercial

side, ad sales, distribution, licensing, or on the streaming side but in the short term, there's also an opportunity to demonstrate that there's value left untapped. so today, we talked about two things related to that one is, you know, we've looked at non-core assets inside the company. most of the assets are clearly core you look at some of the real estate assets as an example. blackrock, i don't you say, do you need to own that the answer is no that is a very valuable asset in terms of an iconic office building we made the decision that we're better off divesting it. this morning i announced we're retaining cbre to do actually a comprehensive real estate review also to begin the process of divesting that office building >> do you have any idea what it is porworth? >> i don't want to put it out there, but it is very material we believe we can do that, take the cash, flow it through our waterfall of how we use cash,

including potentially kwl lly u for buyback, which is the second thing i talked about today both companies haven't been in the buyback business for a while. if you look at the valuation of the company again, you look at the use of capital, we think it is a tremendous opportunity. so we also announced today that under a program existing at cbs, because it is the shell company, the surviving company of viacom cbs, we will be restarting it in the near future. >> both companies had suspended bye ba buyba buyback. you have leverage on the balance sheet. >> we're soon to resume purchases under the existing $2.5 billion authorization >> you entioned, of course, yo said yourself the stock is cheap. many would agree with you. although, you know, it is interesting, bob on an unleveraged free cash flow basis, looking at the multiples, 11.5 times 2020 and 14.4 times

unlevered cash flow. it is a little more expensive than discovery around where fox is. people focus on the lack of free cash flow given the overall profits. is that something you're focused on >> absolutely. we're focused on shareholder valkyrue creation, cash flow the free cash flow numbers you're talking about relatively speaking are the result of two separate companies operating the cbs company in particular hasn't been a significant producer of free cash flow primarily because they were investing in content now, we look at the combined company. the larger platform base, the larger content asset base. one of the things -- and we're in the late innings of the 2020 budget process as we speak because we're shifting to a calendar fiscal. cbs was calendar and viacom wasn't we'll be calendar going forward. we believe there is an opportunity to get an improved roi out of content investments that's looking across the

company. yeah, i believe there is an opportunity to improve free cash flow generation of the company that's certainly one of the things we're focused on. >> one of the keys, of course, in doing that would be getting everybody to cooperate the integration becomes very important there. i wanted to ask about that specifically i think it was barkley's piece, and i'm looking for it here, which said, viacom cbs' digital leadership is making integration difficult. they point out, for example, mark will be responsible for the all digital assets he'll report to you for the digital assets but another plac for cbs. doesn't seem like it'll get the growth you need. >> factually, you can say the companies were together before what's the difference? when they were together before, they were really run as portfolios the things italked about as on ad sales force didn't exist. one content distribution force didn't exist so on and so forth

there's a tremendous opportunity, and we are moving very quickly down that path. we have a nanamed senior execut for all the functions and more we're in the middle of going down the organization. we absolutely are going to operate as one viacom cbs. >> that is hard to do culturally though the companies were together i've had the same conversation with some of your peers. at&t, time warner. different cultures, to be sure integration can be hard. you know that. >> without question. getting people to work together is harder than it sounds but i can tell you, when i took over viacom international in 2007, it was a confederation of independent nations. today, it is a multi-national division of a company. when i became ceo of viacom the end of 2016, we had a very siloed company paramount was an island that did its own thing. media networks were multiple groups, not much transfer. we took the last three years and really aligned that. we created one viacom, including

shared services. we created the viacom digital services group, et cetera. now, we're on the path of creating one viacom cbs. what i can tell you is people fundamentally understand, when i said there would be one u.s. affiliate sales force run by ray hopkins, nobody debated it when i said one domestic ad force, and i picked joann ross, an outstanding executive, great relationships in the industry, and paired her with john haley, everyone got it. they're tremendously excited about it i think people understand the opportunity associated with viacom cbs do we have to get culture change one of the things i talked about in there, part of it is we have to create one combined company culture. that's front center on the agenda we're going to powork hard to d it we'll get it done. >> talking about efficiencies, and we talked previously about your strategy in terms of a hybrid approach, but direct to

consumer is important. streaming is important to the future of the company. you have cbs all access, which many people know showtime svod. as well, a smithsonian svod. pluto tv, which is free. ad supported streaming you have noggin. b.e.t. plug, which you launched, as well. would you be better combining everything under the cbs all access brand and having pluto as a free entrant to that >> what we have today is the result of two independent companies with two different strategies one skewed overwhelmingly free viacom and plow tuto tv cbs is skewed subscription they have some et live, et cetera what we're in the middle of now, just like everything else, is putting together one integrated company with one integrated strategy we'll do that in the streaming space, as well the strategy will be differentiated it'll span free and pay.

if you want the widest accessible consumer base, you have to do that. today, in pay, you have 10 million subs in the u.s. free, 20 million maus at pluto high growth, by the way. that's part of almost 200 million digital users. and we reached well over a billion through our broader business think of that as a funnel you can bring people in. >> right. >> ultimately to a paid product. will the configuration of our product evoluve as it goes forward? absolutely we believe it is a tremendous opportunity. again, we're deep in that now. you should expect to hear more into 2020. >> the $10 million or $10.5 million you cite, people say a lot is promotional they don't think it is sustainable over time. i'm curious, in terms of looking at the revenue that comes from it, some say it should be a higher number if it wasn't so promotion promotional. is that a concern in >> first of all, little is promotion promotional. anyone saying a lot is promotional, that's flat out

wrong. the second thing, we don't disclose revenue yet as we get into 2020 and we give our guidance for 2020, we're, of course, going to give annual guidance, revenues, oi, cash flow, et cetera. we'll also guide additional metrics. expect additional transparency in the streaming space beyond essentially the only thing that combined companies give out are pluto maus we'll come back later in the spring and do an investor day. provide a multi-year view. yeah, there will be more disclosure what i can tell you is just like viacom cbs writ large, in the streaming space, we have a tremendous opportunity cbs streaming is not only entertainment but live news and sports, including local. that's not easy to do. that's been in the market for a number of years now. it works technically we look forward to building on that. >> we look forward to sitting you with you in the future and see how the progress is going.

unfortunately, we have to stop it there for now. >> appreciate it. >> always appreciate you coming on as the ceo of viacom cbs tyler, back to you. >> david, bob, rewe appreciawe that. here is what else is new on "the exchange. coming up, less than a week to go before a new round of tariffs goes into effect against china. will the president extend an olive branch or push the because button when suits and hoodies combine. one analyst says the sector is ready to make its debut. they'll tell us what names will be on top. and there is a new nike in the apparel world. >> announcer: this is "the exchange" on cnbc. everyone uses their phone differently.

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it is a big week on the trade front. i probably need tnot tell you, we're six days from the u.s. imposing potentially 15% tariffs on another $150 billion of chinese goods. as the deadline looms, chinese officials saying overnight they want to reach an agreement as soon as possible to avoid further escalation outside of china, the democrat on the hill and the trump administration down the street are nearing an agreement, it appears, on the u.s. m.ca that agreement, it says here,

could be announced as soon as today. to help make sense of the trade headlines, let's bring in stephanie miller, co-founder of sandhill strategy, and kayla, who has breaking news. bring us up to date on that and china. >> two democratic aides say the two sides are close on a deal with usmca this would be a handshake deal that would require the white house to then send the implementing text of that final deal over to capitol hill to officially green light a vote. two sources of mine who have heard directly from the white house on their operative timing have said that as long as that text is delivered by december 15th, that the date the democrats are looking at for a usmca vote is december 18th. that, they say, would come just one day after the house is looking to vote on articles of impeachment. the caveat, tyler, is that that timing is coming from people who have been informed by the white

house. while the white house and the house democrats are in discussions and negotiations over that timing, of course, the final say rests with house speaker nancy pelosi we'll see where that shakes out. this is the operative timing according to white house officials at this moment, tyler. >> kayla, it takes three to tango in this case, canada, mexico, and the united states. is it what you're hearing that the other parties to the deal, canada and mexico, would go along with whatever amendments the democrats insist upon on our side >> that's been one of the trickier parts of the negotiations this deal was signed by all three countries a year ago democrats and labor unions have been pushing for the changes mexican officials essentially have taken up temporary residence in washington for the last several weeks as they've been on standby, waiting to hear what the changes are they've had some tough talk for the u.s., as some of the changes have been reported certainly, it would seem that the white house and the

democrats would not put forward a deal that they did not believe mexico and canada would sign off on. >> stephanie, you're nodding give us your thoughts on the likelihood that there is some agreement by, let's say, the end of this week or, in time, to get this done before congress goes on recess. >> yeah. i mean, where there is a will, there's a way. i've covered tax reform. i've covered aca you know, they're really hard things for congress to do. when they decide they have to do this policy, they'll get it done i think your question is a really good one, which is, at this point, it is not just us who gets to make the decision, us being the united states canada and mexico have to participate, too i think all three parties want an agreement. >> how -- i don't mean to use the word catastrophic, but what would the failure to achieve the agreement here, where we walk away from nafta and let the deal go, how bad would it be for the economy? >> if nafta stays in place, i think most investors are not too

worried. if the president threatens nafta withdraw as a means to provoke a deal with the usmca, and he mezcal collami mis calcalculates, i think ttit bad. they'd be very, very upset. >> we're a little short on time. i don't want to let you get out of here and, kayla, you too, without talking about china. stephanie, you are bullish on the idea there's going to be a trade deal with china, phase one, and no tariffs coming into effect on sunday. >> yeah. i mean, i do think tariffs could come in on sunday. i think overall, the biggest thing driving resolution here, to me, is the election no president has won an election on a recession -- re-election, i should say, on recession since the 1930s. if the president is worried about a recession, he needs to come to some sort of resolution on china whether there's an escalation, one more escalation this weekend

or not, i don't think it is sort of an end all, be all for things turning sour. >> kayla, what are you hearing, if anything, on china? every day brings a new headline. >> we've certainly seen bullishness from members of the administration you also have to think the president's phone line is lighting up with the likes of tim cook and the ceo of hasbro, instrumental in his august delay of these exact tariffs just before the toll hollidayho have to imagine they're reaching out to the white house again. >> stephanie, good to have you in the house today. >> thanks. coming up, ask tok the stoci company is up 70%, outpacing nike barren s baron says it has room to run why invest irs like it ahead. turning one brand's faux pas into a tune. trs omhe spirit gin hires the acesfr t infamous peloton ad

she needs a drink. they'll give her one we'll be right back.

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u.s., even while repeating that there will be no more negotiations between the two countries. the remarks by a cabinet spokesperson were the first after a prisoner exchange over the weekend which saw iran free an american scholar. amazon says president trump's improper pressure and behind the scenes attacks harmed its chances of winning a $10 billion pentagon contract. it argued in a lawsuit unsealed today that that decision to give the contract to microsoft should be revisited a group of climate change protesters glued themselves to cement blocks on a london road, stopping traffic during rush hour officials had to use special chemicals to remove the adhesives enough so they could arrest the protesters. you are up to date that's the news update this hour ty, back to you. here's what else is coming up on "the exchange. ahead, is skechers the next

ni nike morgan stanley says virgin galactic is ready for take-off a bank analyst heads to a d nference anthe peloton ad wife moves on it's all coming up on "the exchange." u.s. stock and etf trades.ree e and, when you open a new fidelity brokerage account, your cash is automatically invested at a great rate -- that's 21 times more than schwab's. plus, fidelity's leading price improvement on trades saved investors hundreds of millions of dollars last year. that's why fidelity continues to lead the industry in value while our competition continues to talk. ♪ talk fidelity.

paul hudson's investors on the pipeline challenges, profit

pressures. on ""squawk box" tomorrow. let's catch you up on a few stories that should be on your radar. time for rapid fire. here's a breakdown of the headlines. dom chu, kate, bill griffin, welcome to you three. >> hi there. >> let's move to skechers. whether or not the shoes are cool is up for debate. no question about the stock. the shares jumped more than 75% this year alone, outpacing, you see it there, the rival nike baron is taking a deep dive into skechers and sees plenty of room for the company to run calling it the rare value brand in the industry, trading at 16 times forward earnings the magazine deems it cool with celebrity team-ups with the likes of tony romo and ringo starr. >> any shoe worn byringo starr -- >> good by you >> tony romo. >> he has a good brand thing. >> joe montana, any of the other spokespeople they've had. >> i like my skechers. they feel like skateborder shoes. >> you wear them >> i have a pair of black and

bhiet o white ones. >> i bought these for my dad because of the ringo starr ad. they look cool what they're doing is going for value. they're not going for some big athletic sponsorship you mentioned tony romo, of course it is not like lebron is wearing skechers, which would cost them a lot of money they don't need to because kids are buying them and older people wear them, as well two sweet spots right there. >> shoes, by far, are the most interesting fashion accessory right now. >> i don't tell just right now but for years they've been that way. >> i think we're witnessing this explosion in the interest of fashionable shoes, both on the high end and the low end. >> one of the hottest stores in my town is a store called 908. not a plug for them, but they have these collectible sneakers. they're jump man jordans, nikes, skechers, so on and so forth it's where all the kids want to go they're the fashion statement.

he got a pair of these you said skechers is the number three footwear brand in the world. >> by revenue. nike, adidas, and skechers. >> that's speaking to the market size they're not dealing with the ultrahigh end or low end it is shoes that people who are normal can wear. that is a big market. >> particularly the kids who can age out. they're also cheap. >> tony romo has skechers, corona beer. it's working for him, man. >> there you go. >> and he is a good golfer, by the way. >> yes, he is. >> wants to play on tour. >> probably could play pro morgan stanley initiating coverage of virgin galactic. giving it an overweight rating three times the current value. morgan stanley's analyst, not one of the jonas brothers, saying ver gin galactic stock has biotech type risk/reward up 14% on the initiation

they're still off the debut price by 24% this feels to me like a long-term play. >> very much >> it has to be, right >> first of all, adam jonas is not their aerospace and defense analyst. he's the tesla analyst he covers tesla, covers autos for them it gives you an idea of what we're talking about from a framing standpoint the other thing, too, about this is if you take a look at a stock like virgin galactic, one of the big investments he sees is there is no way toy invest in space publicly you go to spce, virgin galactic. >> i looked t eed at the financs this morning the revenue line, zero there's nothing there. when you do the math, at least right now, assuming their only business will be the space trips, okay, they're going to charge $250,000 per passenger. six passengers per flight. that's $1.2 million. already, almost $1 billion has been invested in this company to

get this off the ground. how many flights is that going to take before they can get a return on that investment? i realize they get some back with the ipo still, this company is very much a long, long, long-term investment. >> you're a risk taker would you do it? >> am i? >> very much >> you were driving on the road -- >> jumping off of trampolines. >> not going to space. that's a morgan brennan thing. she said on the air she'd do it. >> she did. >> there are risks and unknowns, including the possibility of fatal accidents, limited market acceptance i'm kind of on that side of the gamble >> let's move on to netflix. it's crushed the golden globe competition. the streaming giant getting 34 television and film nominations, outpacing any other entertainment company in both categories the stock has been under pressure this year are these nominations a sign that its content is yielding returns?

they got nominations but also threw a lot of spaghetti at the wall, right? >> is it true -- i couldn't find the answer -- is it true none of the broadcast networks got a nomination >> that's what i saw. >> unbelievable. >> they certainly didn't get more than three. showtime had three nominations none of -- >> nbc, pbs. >> not that i saw. >> what a paradigm shift from 20 years ago. >> some of the releases that have been in theaters and moving to netflix quickly, within a few weeks, like "the irishman," "marriage story," those are interesting, too you're opening it up to a broader audience that might not be willing to go to the theater anymore. yes, they've thrown a lot of spaghetti at the wall, i believe was the term, but they're ahead of the others. they've been doing it longer if you're counting all of these nominations as positives and yielding results, then it looks like they're winning. >> give it a few more years. the others will catch up. >> for a long time though, remember, the numbers that really drove netflix' stock around quarterly reports were

not the profit and loss. it was the subscriber ads. bottom line here, these content plays have to lead to more subscribers who are paying to do this stuff there's an environment right now where people want to see profits. that's a change. >> i would argue that the model kind of feels like it is working. because the -- >> for netflix >> for netflix as it did for hbo. >> right. >> if you have shows that people must see. >> yes they'll sign up for it. >> right. >> look at how the conversation shifted from when they lost "the office." a few months ago, we're talking about them losing everything now award season, look what they have the narrative is changing. finally, one to spark conversation the viral peloton ad remember that from last week it is bringing opportunity for monica louise, who played the wife with the pained expression in the peloton thing she was worried she was not going to be able to succeed at peloton. >> the live class. >> she's taking her character's

trauma now, it was a trauma, to a new commercial for ryan reynolds' aviation gin in the ad, she toasts with two friends to new beginnings. post peloton at least one tells her that she looks great. watch what she does with the martini, ladies and gentlemen. >> down it goes, everybody. >> bottoms up. >> there it goes. >> she goes -- >> and goes. >> that's about two hours on a peloton. >> there you go. >> that is a brilliant strategy. i mean, i assume this came from ryan himself he probably picked up the phone, found out -- >> reached out to the agents. >> yeah. what's crazy about this, i mean, the peloton, first of all, we've talked about the idea that peloton has gotten advertising because of the ad. >> right. >> i spoke to the brand marketing experts at apex marketing group. they put dollar values to how much exposure people get it turns out ryan reynolds' aviation gin over the past three days has gotten upwards of more than $10 million of brand advertising exposure. >> is that right

>> because of what's happening online on social media and everything else. >> friday night, this commercial hit friday night by saturday, they already had 5 million views. >> yup i agree. i think it is so, so smart poor peloton husband no chance to change his image. he changed his instagram handle. didn't like the exposure >> look at her eyes there, she's so upset peloton is up 30%. i never heard of aviation gin. i like gin. >> you have now. >> yeah. >> pick up a bottle on the way home. >> how smart >> great move for them. >> chugging a martini. >> yeah. >> gin martini. >> that's serious business folks, thank you good to be with you. fintech is supposed to overall the banking world, but according to one of the street's most watched analysts, it is stuck in the age of pacman what the banks need to do to

catch up. why the kansas city chiefs nearly had to forfeit yesterday's matchup between the new england patriots we'll tell you why no not everything, i mean you're still blatantly sucking up to me gary. brilliantly observed, sir. always three steps ahead. six steps ahead. sixteen. so many steps. you done? a million steps ahead. servicenow. works for you.

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♪ former federal reserve chairman paul volcker died at 92 he beat inflation using 20% interest rates in the late 1970s and early '80s setting the stage for a decades long economic expansion into the '80s and '90s. in the aftermath of the great recession, he served as the chairman of president obama's economic recovery advisory board. he was instrumental in creating the namesake regulation the volcker rule in an effort to rein in wall street. for more on his life and legacy, i'm joined by the former chairman of the council of economic advicers. austin, great to see you you worked with mr. volcker on the aforementioned presidential recovery advisory board. what are your remembrances of

him? >> well, i did work on that. i mean, he was, as i said, he is as close as economics has ever come to creating a legit superhero. he was a giant of a person 6'8" or 6'9" or something like that i think the main component of the volcker legacy, o r one r of it, is the toughness to face down inflation before that, he'd worked in the treasury when the monetary system internationally was breaking down and the u.s. went off of the gold standard then fast forward to the financial crisis, just before it, he was always a major advocate of being tougher and watchful on financial institutions as he used to say, it's not that the finance are the good guys or the bad guys they're just like everyone else, and they have to be watched. they can't self-regulate they've got to have oversight.

>> alan greenspan, he was the most effective chair in the federal reserve. he was a role model for every financial official who followed him. volcker was not immune, has chair powell has not been immune, to presidential pressure he told a story about a year ago about being invited to the white house, ushered into the library room off the oval office, where president reagan and jim baker, his chief of staff were there, and told him in no uncertain terms, baker, not reagan, don't you dare raise interest rates in this election year, the year being 1984 volcker wasn't planning to raise rates at the time. he knew presidential pressure. imagine if he had been on watch and been raising rates as he did today. >> yeah. you know, one of the great

passions that paul volcker had was defense of the fed as an institution and defense of the fed's independence he bristled back in the '80s when privately they expressed some sentiment of -- in the white house of how they wanted him to behave. i could only imagine if the president of the united states was publicly getting up and declaring a fed chair to be a dope, to be an enemy of the state and all of this kind of stuff. i think, boy, they would have -- that would have been a battle royale even late in his life, it really upset chairman volcker, that the fed had lost some step of independence. >> in an era where it is very easy and very convenient to criticize public officials, he put public service first right? >> yeah, he did. >> that was his life.

>> he started -- that was his life, and he started this volcker alliance, which is about trying to encourage people to do public service and to improve the efficiency of public servants who knows? is it that society has changed is that we don't make people like that anymore? but he was a person who was dedicated to the public interest he was respected on both sides of the aisle he was respected for his toughness and for his judgment let's hope that we can find some new volckers going forward. >> he was a formidable man austan, thank you for your time and reminisces. >> thank you. >> we'll be right back after this woman: my reputation was trashed online.

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wells fargo held its annual meeting in las vegas this past week among the dozens of tech analysts, one loan banki ining analyst bravely entered into the

fray he's returned from tech world and joins us now wearing a hoodie you've changed your stripes. >> i am wearing a hoodi. you cannot be a bank analyst without being a part-time tech analyst. i was the only bank analyst among the 800 last week. >> do you think that more bank analysts could learn a lot if they paid attention to tech? >> absolutely. >> why aren't they doing it? >> there's good news and bad news the bad news is that banks still have a degree of pack man age technolo technology we're talking about mainframes and tangled systems and 50--year-old cobalt code here is the pacman to symbolize some of the technology at the

bank when it comes to the bank and its technology you need to do away with that ancient technology and move ahead. there with over 140 presenters >> two questions one is this, i do a lot of my banking online i don't remember the last time i went inside a bank branch other than to get something notarized. i do a lot of my banking using my mobile app. to me it seems like the technology is pretty advanced, at least at the banks i use. >> when it comes to mobile bang banking and digital banking, firms like bank of america and jpmorgan are beating silicon valley there's still a lot of potential ahead.

when we were in business school you learned if you had a lot of consultants and third parties, you were a weak firm what's changed the the ability to partner with tech company that can cross pollinate you're previous successes and companies. they say we've done this before, we can do this with the bank, we can move the banks ahead >> is the internal issue the ctos and cios don't have enough push with the cfos >> absolutely. the chief technology officers need to have more power to break of the entrenched i.t.

management >> always good to see you. it's a good look >> thanks for having me. >> that does it for the exchange power lunch begins in about six seconds or right now when ever she's ready. i'm ready. we'll see you in a moment. here is what's new at 2:00 on power lunch. the trade deadline moving large just six days until new tariffs kick in. is the market discounting a trade deal going wrong disney dominates reaching for a 10 billion dollar year at the box office ahead of the latest star wars movie. we have the details. it's been a bad trip for travel stocks. shares of the biggest players have been getting crushed thanks to more competition from google. power lunch begins right now