fact the return will be lower. those are my two tricks. read my blog >> give me a name. >> schlumberger. >> kender morgan, good yield >> philips 66. >> happy new year, everybody >> happy new year to everybody out there as well. look forward to being with you in 2020. "the exchange" with joe begins now. >> thanks, scott happy new year here's what's ahead. 2019 was the year that the bulls really took charge with the market sitting a series of all-time highs, but what do you buy now at these lofty levels we have names. plus, from paying college athletes to online gambling, to media rights, media rights, not meteorites almost the same. and my four picks for today in the bulls. i'm going to give you those. we'll look at what 2020 can bring in the sports world. and uber sues california burritos ruled in 2019, and commodities made a comeback, but we begin with today's markets

and bob pisani at the new york stock exchange hey, robert. >> hello there, old friend narrow trading range we're down second day in a row, but a small trading range. 16 points in the s&p 500, maybe 200 points in the dow jones industrial average the nasdaq, though, is eking out small gains. the dow gainers for the month, they're still the gainers for the day. look at apple, look at nike, look at sisco, all up on the month. the laggards, it's interesting, the ones that are down in the month of december also down today. boeing had a tough month even disney. they topped out the beginning of december, $153 now, $143. visa ending down today a little bit here that was a big mover all throughout the end of december the one sector i would point out to you is the energy sector. oil exploration product up again today. and you know all of those really

beaten up small exploration production companies, witing, southwestern, all terrible year, terrible three or four years since the tax law selling seemed to stop the middle of december, they're all being bought i don't know if this is a mean reversion long term, remember 2010s was the worst decade in 20 years for energy stocks. or whether this is just a temporary thing, but these stocks have all done really well in the last couple weeks back to you. >> i have no time to talk to you, bob, but i was going to pose a question to you we're posing the age old question, should you buy at all-time highs can i ask you a question >> go ahead. >> at what all-time high that we set over the last five years should you not have bought >> what all-time high? >> what all-time high that we set each time we set one over the past five years should you ever not buy at all-time -- is that something we need to ask if the market keeps heading higher? you should have bought every

all-time high. >> that's right. if you're a long-term investor, for sure >> what does that mean going to wait for 10%. >> i'll tell you what it means this morning, i showed everybody the average -- the s&p goes up 72% of the time year over year when you include the dividend in the last 90 years. if you're playing long-term odds, that's why you buy and hold >> just making a point, bob. obviously, we're at all-time highs. you should have bought every damn all-time high previous to where you are now, and you would still be making money. thank you, bob a year to remember for the bulls. as after a dismal start to 2019, they're set to end the year with doub double-digit gains s&p, 28% easy to say, hard to imagine nasdaq, 35%. a whopping 35% when it comes to sectors, technology, communications services, and financials are at the front of the pack. technology on a tear, gaining 47% this year.

communications services up 30% and financials up 29%. and the best performing stocks this year, leading the dow, apple. those shares soared 85%. taking first place on the s&p and the nasdaq 100 amd up a staggering 148% let's bring in bill stone, chief investment officer of avalon investment advisory, and scott wren, senior global market strategist at wells fargo investment institute i'm not going to beat a dead horse, but the same thing goes, scott and bill, for individual issues people that look to buy a stock on a low, i'm getting a deal on a low. you know what, you usually get some new lows after that you're catching a falling knife. don't you think you ought to buy -- should you shy away from a stock at an all-time high when it's like an amazon or something over the years it hits all-time highs consistently because it's a good stock, right >> well, certainly, if the fundamentals support it, you're right in those cases, obviously, like an apple, where it's, you

know, continued to grow earnings really moved to being i'll argue a consumer product company maybe more than a technology company, and it's also got its ecosystem out there that makes it much more resilient relative to some other technology companies it probably deserves a better multiple than perhaps people would have put on it in the past >> scott, they highlighted something on the notes that you said that it's been a good year, obviously. position for more challenging times ahead. was there any time in 2019 when that wasn't your sort of your blanket comment anyway weren't you saying position all year long, position for challenging times? you knew we were going to do 28%? >> well, we definitely did not know that. we're about 6% or 7% above what our year end - >> that's pretty good then >> so the market did better than what we certainly expected >> that's pretty good. >> it has been, and this year, as i look back this year, what we did is we reduced risk.

we raised a little cash. we backed off on industrials, and we could have said, hey, you know, we're doing this a little too early in hindsight, we did leave a little money on the table, but we thought this trade risk was going to last well into 2020 and really, the market wasn't looking for much, and i don't think we're going to get much of a trade deal, but that's what really we underestimated as we look forward >> maybe we don't need much. maybe we just need a trade truce. >> just less tension that's really all we needed. >> bill, what would surprise you this year? i'll give you three scenarios. what everybody is saying, up mid to high single digits. that's what everybody is saying. up 25%, so similar to this year. or down 20%? what do you think the most likely scenario is and what would surprise you the most >> you know, i think the most likely is something in that, you know, i would say even low double-digit kind of range the big losses or big loss i

don't expect usually the big loss comes with a recession. typically when you go more than the 20% loss, that's typically associated with recession. we just see very little chance of recession, and i'll give us a little pat on the back we said that all year this year as well. that's why we stayed positioned pretty aggressively relative >> scott, are you low double digits or low single digit >> i hate to be with the consensus. >> i know. >> we're in the mid single digit. the thing we could be not -- we could be underestimating is the magnitude of chasing, which obviously we have seen a little bit here, but we're in the early innings of that. if you get some good news internationally, stabilization, maybe a little better performance there, that's where the market could put in a better return, we think, than what we're looking for right now. >> all right we'll know soon enough >> we will >> as the first week goes, so goes the first month

as the first month, so goes the year that's what they say none of that is true >> none of it is >> but it gives us something to talk about in the first week of january and act like oh, boy this is important. anyway, thank you. >> thanks, guys. happy new year >> thank you >> here's what else is ahead on "the exchange. >> coming up, going, going, ghosn. one of the biggest auto executives in history is on the run after escaping japan while under house arrest a look at the story of carlos ghosn. >> plus, states made a bet on online betting this year, and it's paying off big. we'll look at who could get in on the game in 2020. >> and the name that's contributed the most to the s&p this year. >> this is "the exchange" on cnbc

as you have probably heard by now, former nissan chairman carlos ghosn has fled house arrest in tokyo, landed in lebanon after a stop in turkey and he has citizenship in lebanon and is safe from any extradition attempt by japan in a statement, he says i have not fled justice i have escaped injustice and political persecution. i can now finally communicate freely with the media. for more, i'm joined by peter campbell, global motor industry

correspondent for the financial times. so little time, so much to talk about. peter, do you confirm, was it in a musical instrument case? what would it be, a cello case would it have to be a full bass case >> without getting into too many speculations about carlos gho ghosn's relative size of instrument cases we still don't have the full details of how he left japan he was being tailed whenever he left his apartment he was under very severe security checks. and how he got out of the country, and then eventually made his way to lebanon. there was -- there have been several rumors, several of which have been fantastic during the rounds over the last few hours one of which was that he escaped in a music case with a band of musicians that came to his apartment. now, we don't know if that's true in fact, there has been denied by people close to carlos ghosn. so we still do not have the details, and the full kind of

spy thriller level breakdown of exactly how he dodged his minders and got out of the country. what we do know is this is the latest twist in a saga that has gone on for well over a year now. now, carlos ghosn was arrested in november 2018 at the time, he was still chairman of nissan, although he stepped back from being ceo. he was then charged with having inflated his own salary at nissan and not disclosed it. he was then released on bail he was then arrested again and charged this time with using company money for his own purposes and then again was released on bail and it's from that bail that he appears now to have fled to lebanon. he claims he's innocent. he said he's innocent from the outset and he's said that there were japanese forces at work to try and take him out of his position because people within nissan and within japan were worried about a merge with renno, who as we know are nissan's global

alliance auto partner. so this has been going on for more than a year now we expected a trial to start in japan in the next few months of 2020 there are now big questions over how much of that can go ahead and what happens with that but this is the latest case in what has become an absolutely extraordinary story. >> so peter, in listening to mr. ghosn, and you have covered this very, very closely. just a couple things would you yourself feel totally comfortable with the way justice is carried out in japan? the way that peter -- or the way that carlos ghosn has talked about it, it made me a little bit uncomfortable. i was a little surprised to see ghosn's lawyer, i don't know whether it was just boiler plate or whatever, but he immediately said that mr. ghosn is at fault and shouldn't have done this and that he's subverting justice but just looking at it, i would not want to be in trouble in japan because i'm not sure we have the same justice system in

our country versus theirs. >> well, one of the extraordinary things about the case in the few hours after it transpired that he was back in lebanon that we thought maybe there had been some kind of deal, maybe they reached an agreement to drop the case, but his lawyers said they had no idea he was planning to leave. as far as we know, they still hold his three passports so the lawyers say they had no idea this was going ahead now, one of the amazing things about the japanese justice system is its conviction rate, which is well above 99%. it's often because people confess, having been held and questioned they confess before it goes to trial. it's a foregone conclusion normally, this happens within the first few weeks following an arrest carlos ghosn was held for around 100 days before he was released on bail. and during that time, he never confessed. he always protested his innocence. he was kept in a cell which we are told was unheated, which had

the light on for long periods of time, deliberately uncomfortable. it's likely if this had gone to trial, his case would have been heavily against the japanese justice system >> doesn't sound great, peter. >> from the outside, he doesn't have a fair trail. >> on the surface, to me, it seems like there's some questions maybe i shouldn't feel empathy for mr. ghosn, but i can't help it. we is to run hopefully we can talk to you again, and you probably have more details at that point thanks for skyping with us i like it. >> pleasure. thank you. >> all right okay, boomer yeah, i understand skype coming up, chipotle shares have been on fire this year and there are few things that ceo brian nichol credits for driving the gains. what they are. >> plus, the 2020 playbook for sports betting which i know a little bit about. this year. a look at the money, the main players, and who stands to win big. "the exchange" is back in just a couple minutes deeper data at cnbc.

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i'm sue herera here's what's happening at this hour in our news update. corey lewandowski, president trump's former campaign manager is passing on running for a senate seat in new hampshire

he tweeted out that his family remains his top priority and working to re-elect president trump. >> wildfires burning across australia's two most populous states trapping residents of a seaside town, causing at least two fatalities on the new south wales coast, fires were seen moving towards the highway linking sydney and melbourne >> mohammed zavad zarif meeting his count part in beijing. they held a meeting along with officials from both countries. >> and china ringing in the new year in beijing. revellers gathering at one of the venues of the beijing 2022 wint orlimpics to welcome the decade in with a new year's countdown under sparkling confetti followed by a spectacular light show wow, look at that. you are up to date that's the news update back to you. >> all right, sue. in what universe would either

one of us go into politics >> never >> what would prompt someone - >> never >> that's the problem. so who do we get >> i suppose that is part of the problem. part of the problem. >> that's not neither here nor there. thank you, sue >> sports gambling was one of the major stories in the world of sports this year, but it's not the only place with big money at stake eric chemi has a look at what changes and we could see in sports business in 2020. >> 2019 was a big year for sports business. from california voting to pay college athletes to the rapid growth of sports betting here's what to watch in 2020 first, sports gambling spreads sports gambling will continue to grow across the country. more states will legalize sports betting, bringing the number closer to 20 states that have done so. pro sports leagues and individual teams will sign a growing number of official partnership deals with casinos and online sports books and there will be consolidation as smaller players will get bought

out or merge with bigger companies. >> second, waiting for payment the fight for college athletes to get paid will continue to drag out the ncaa will have their committees and groups working on a variety of rules and policies. individual states will bring their own bills forward. warriors will be busy and talking heads will have a lot to debate, but the process will go slower than many fans anticipate >> and third, schedule changes are coming all of the big pro sports leagues will try and some will even succeed at pushing major scheduling changes to keep up with declining tv ratings and an ever so distracted fan base. the nba might reduce its number of games, but add an in-season tournament or a playoff game the nfl might add a 17th regular season game, and nascar might drastically alter its schedule to move into more urban markets. >> we're going to talk more about this we're efforting getting our content officer at the action sports network on, and i have picks. i think this kentucky game is already happening.

i have kentucky over virginia tech i'm going to give you all my bowl games if we do eventually have a segment on that hopefully we will. >> anyway, here's what else is coming up on "the exchange." >> ahead, it was the year of the burrito. apple does its part to help the rally. uber sues california it was a rough year for airbnb and a special guest joins us for 'sllomg o"t it a cinupn he exchange."

let's catch you up on a few stories that should be on your radar. it's time for our final rapid fire of 2019 and here with their take, kate rogers, bill griffeth, and morgan brennan thank you for being here again >> no, thank you >> our pleasure. >> thank you >> thank you very much >> we saw you earlier, and i saw you yesterday. >> two daysane row >> first up, the s&p 500 on pace for a record-setting year, and wall street has apple to thank among other tech giants. really apple, which accounted for more than 8% of total market gains in 2019. the highest of any stock apple shares, if you're not

counting, up 85% this year on track for the best year since 2009 and that was from already like an $800 billion company. how do you go up 80% when you're worth $700 billion you go over a trillion >> who was the big market bellwether in the '80s ibm. big blue was the big one now apple is the big market cap. >> up more than -- it was at $140 if you calculated from where the lows this year, it's100% >> once again, technology is the leading indicator. it's no surprise we have been focusing so much on the fang stocks because that's where the growth is, the innovation is, the market is. >> that's certainly not the leader, but who has been there and is still there microsoft. think about that >> it's back >> certainly is. >> it had a -- had a nuclear winter there for a while >> it did, but it's a trillion

dollar kacompany. i guess windows. do people still use it >> the cloud >> we do here. >> you have jedi >> y2k >> or y22k is that what this is called. >> apple, we have seen the stock earnings, largely flat this has been a straight up valuation. a pe ratio it's been a multiple expansion and it really speaks to the fact that investors are starting to not look at apple as a value stock but maybe as a growth stock. >> and to pivot to wearables, the airpods, both versions of them, the watch, what that's doing for the company, and people looking ahead to 5g and what it means for apple. >> apple has done something that ibm didn't do, that's go with the time and evolve. apple is now wanting to become a services orybted company, not just a product company >> i'm in the whole ecosystem with apple music and everything. you have to admit, everybody i see has an apple iphone, and then they come back with airpods.

everybody i look at has those things it's amazing that everyone in the world gets whatever apple is selling. it's again and again, incredible we have to move on to this and i blame you to some extent >> what did i do now >> you're pointing at everything california you want to kill - >> like you never lived there. >> i did, but i didn't grow up there. i didn't breed the politicians -- you want to ruin the gig economy, let's do it uber and postmates are suing the state of california in an attempt to block its new labor law. the bill is set to take effect tomorrow, requires gig company workers to be reclassified as employees instead of contractors. the uber law argues it's unconstitutional and carves out nonsensical rules. i know i'm not supposed to rant. but the gig economy is tough enough for these companies they're never going to make money, probably, and they're constantly undercutting each other. now you want to make them pay how much more? so that they cost more than

taxis, so the taxis are all of a sudden what you want to use again? do you want to kill the gig economy? these are the wacky politicians in california. >> you ready for this? i agree with you >> there are some -- it's not the best written bill. there are some -- these exclusions are weird >> they are very weird >> you know, milk truck drivers. >> direct sales people, travel agents, grant writers, construction truck drivers commercial fishermen but not free-lance writers not truck drivers. more broadly and of course, not some of these independent contractors within the gig economy. here's what's interesting about this lawsuit it's not just the companies that are filing it. it's also two of those contract workers which i think actually speaks to the fact that many of the people who are working as drivers, for example, yeah, maybe they want some more benefits, they want more protections, but they're working between all of those companies >> exactly fwl what does this do to their ability to do that >> when there's no uber and no postmates, not only will you not have benefits, you won't have

paychecks. >> we'll see this is going to be challenged in the courts. >> uber provides a pretty good service for people who use it and for people that are using it for part-time employment or even full-time. >> we have, by the way, next hour on "power lunch," one of the congressman from california who was involved in doing ab-5 we'll talk more about it >> throw away comment this morning that the wacky democrats in california have done a lot of bad things in that state have they not? and people take issue with that. >> look, it's my - >> it's my last day. don't screw things up, okay? >> you wouldn't if you tried >> this is shaping up, i have comments about this, too >> i'm sure you do >> this is shaping up to be the year of the burrito. shares of chipotle are on a tear >> what could you possibly rant about on this one? >> you'll hear blowing away the 28% gain. brian niccol appears on cnbc today and said innovation is to thank. you'll see >> we made a lot of progress in

our operations, in the restaurant, so i think the food is consistently better i think the speed at which we're doing it is better and then obviously, we have added new access around this digital space and the digital system that's been a real growth driver in the business and then the other thing that we have done is we have done some fun things around the menu, whether it was lifestyle bowls or most recently the carne asada steak. >> i have more to read before we can talk meanwhile, analyst continues to love the stock, too. suntrust says new menu items will give chipotle a boost later in the year. >> what's the problem? >> when they hired brian niccol, he was coming from taco bell they said oh, no, he's going to turn chipotle into taco bell good, do it. get rid of all the cilantro and give me a dorito taco covered with cheese and hot sauce, and that's what he's done. and that's why it's working. okay not a burrito bowl

go ahead >> this is her meat, by the way. >> i think they should are just converted all of them to taco bells. >> we know okay, so brian niccol has done a great job with this. this transformation story. he mentioned the lifestyle bowls they launched last year around this time because people were looking to get healthally for the uyear. >> with mexican food why? >> and help to grow that platform digital sales just hit the billion dollar mark for them they have been good nearly 100% the past three quarters in a row. an incredible growth story i think that's why, because the line is kind of blurring you have the taco bell cantinas coming in to try to take on chipoty, and now you have chipotle, and brian niccol talked about this, too, thetac they're expanding into drive-throughs as well and digital enables them to do that with crazy wait times. >> he proved an adage i have been saying. it's not exactly how you're selling it, it's how you sell it the digital sales have taken off for this company

that's how you improve >> by the way, speaking of ab-5, this is a company that uses delivery companies we'll see what happens >> you mean i would have to go to chipotle to pick up my food >> they have a drive-through >> agreed on something can we all agree that the worst mexican food is great? >> the greasier the better no bad mexican food. >> there's not >> there's really not. >> you can do it healthy, though lifestyle bowl >> don't make me go healthy. >> in california, all the taquerias there. >> delightful. >> i had them down near cancun, after i had my bout with montezuma's revenge and i was ready to go, i went on the road. and loaded up. give it to me. you can't hurt me. >> finally >> share less in 2020. >> finally, we couldn't let 2019 end -- tuluma is down there. without looking back at all the great rapid fire segments we have had i proebl won't be in this at all.

i may not even watch let's do a rapid rewind and check out some of the year's best and worst moments >> oh, welcome back. >> not even a word >> dribble drabble is a perfectly acceptable phrase here on rapid fire. >> the average age is probably about 60 >> most of them don't wear shirts >> that's just the women >> you know who has mom jeans knows these are the most comfortable jeans. >> if victoria's secret would stop printing words on the bottom of its underwear, maybe it would find a broader base >> i need that >> they're testing nocknowledge now, seems like a no-brainer >> my great fear is having emts pounding on my door when i'm making other unique sounds >> this is terrifying. >> did i ever tell you this? the one on the left once spend eight hours tucked under the hood of my car >> i googled sexy date night movies just to see what would come up number five was a movie called

"bang gang." >> that's all i've got >> these are movies you watch on date night >> time for rapid fire >> this is what we used to call a babe magnet. >> i'm not touching your apples. i learned -- >> that's going to be a meme >> a diaper that could actually track how your kid is doing. >> if you're getting a notification on your apple watch that your kid just went, do you really need that >> spoiler alert >> if you haven't seen avengers end game, you know tony stark dies >> what? >> ironman dies. >> i didn't see it >> there are some states and counties where you can't hunt, somewhere you can't gamble the county i live in in new jersey - >> you described my entire sunday >> i marvel at your mind unbelievable >> it's a hamster wheel of garbage. >> thank you very much >> bye >> see you >> you're all here >> whoa, whoa, whoa. >> oh, my god.

>> whoa, whoa, whoa. you cannot do a rapid fire year in review without me >> we just did >> did i do something else wrong? is everything okay i'll leave >> welcome back. >> how are you >> aren't i missing -- where's the baby where is the baby? sue? >> i have the baby, guys >> how is he doing over there? how is he doing? >> i just woke up the baby >> uh-oh >> that baby is perfect. >> he's doing great. he's the most beautiful little guy. >> he is >> i'm going to turn him a little bit, but i don't want the lights to get him. >> congratulations, sue. i have been gone for so long, i didn't even realize. oh, that's yours >> this is kelly's new little boy. newest member. >> thanks to mike santoli for his duds there he's looking pretty sharp. >> isn't he sweet? >> where's number one? he's chopped liver now >> number one is with daddy. they have been spending a lot of time together lately let me tell you, divide and

conqueror. >> he's the beautiful newest member of the cnbc family. >> thank you, sue. >> so sweet. >> sweetest little guy >> now that i'm retiring and you're still on maternity leave, i'm hoping i can come over for a cup of coffee and we can watch soap operas. >> that's all i have been doing. glm sure >> i love being here, but when do you get here? >> march it's going to fly. like two months left to go >> it's flying what was your favorite story this year? >> oh, my gosh is that what we were just talking about? >> this would be the rapid fire wind right now >> favorite story of rapid fire was bill's googling habits >> that was a theme. >> leslie picker especially enjoyed that, yes. >> exactly >> i missed that i don't know if i want to know all right. >> we'll just leave it at that there's too many to pick from. and yeah >> the cutest little guy >> i'm excited to get back in the saddle if joe will let me have it back here. you're having a little too much fun without me >> really. it is fun. i like this show

>> i'm doing "power lunch" by myself next hour anyone, anyone >> joe said he would stick around and you can do it together >> i never said that >> you heard it here first >> anyhow. >> neat to see you >> neat to be here >> we meet you >> congratulations >> as you all know, work is now a vacation >> for you it is >> well, happy new year. >> thank you >> happy new year. >> should i take my -- yeah. >> he misses his mommy, kelly. >> i'm coming. >> i got him back to sleep he went back to sleep. and i'm ready to do the handoff. congratulations. >> can you come home with me, sue? >> i would love to he's adorable. such a good baby >> he's very good. >> thank you, sue. thank you, kate, thank you, bill thank you, kelly and come back. >> coming up, from apple to amazon, every major tech company heading into the new year betting on health care, but it's not going to work out for all of them a look at who stands to win in this race. is it okay -- you want to read

this, kelly? >> disrupt the $3.5 million medical set. >> excellent we'll be right back.

welcome back to "the exchange." going into 2020, almost every major tech company from amazon to apple to google has a health care story if history teaches us anything, it's that health care has been a weak point for many of them over the years. cnbc.com's christina farr wrote about this today she joins me now what is the allure it's like i guess maybe it's because everything begins with a t when you talk about health care as in trillions. but it's not as easy they think they can come in here, they're so smart they have done all this other stuff. we can figure out health care. has anyone done it >> not really. i don't think we can take a look back at the past decade of attempts to move into health care from the tech companies and

say anybody has had a home run in this space. there have been a lot of attempts, and some of them were actually abject flops. google health shut down in the early part of 2012 microsoft health folds it was another attempt to pull in medical information for consumers. also shut down actually earlier this year, so we have had a couple failures. and for the most part, you have seen companies sort of try and play with different ideas. but i don't think that we can really say quite yet that any of them saving lives and truly kind of disrupting the sector, that's probably going to come in the next decade. >> probably, yeah. i'm trying to think of the different approaches you could use. obviously, i would not want to count apple out, because of the wearable segment and i just can't imagine how you could not at least be somewhat successful sending data to doctors on ekgs or heart rates or blood pressure and you know, watching what apple has been able to do

disrupting other industries, would you count apple out? that may be the one you think has a pretty good shot >> i actually do rate apple as being one of the ones that has the greatest potential in this space. ten years ago in 2010, they were not doing anything in health care and now, you know, i have been reporting that they have got dozens of doctors on their staff. they've got a whole wide range of products for their medical clinics, for employees as you mentioned, the ekg on the apple watch that tracks the heart's rhythm and a lot going on in wellness and fitness as well i think for apple to really make a huge difference in the next ten years, it would be to introduce something like noninvasive and continuous monitoring of blood glucose or blood pressure that would absolutely change the game for millions of people who have chronic conditions. and i have heard that they're working on both of those things. they're just extremely challenging to get right so i'm waiting for that from apple before i would say that, you know, i have been totally blown away by what they have been offering so far

>> you know there will be a merger between other disciplines too. we're getting close to identifying more and more cancer specific anogens. too bad theranos was a scam. some day we'll be able to find more with small amounts of blood. i wish we had google's expertise or microsoft's expertise to collate all of the patient data to look for trends and to look for ways of preventing things from happening looking at best treatments sharing medical records between all of your different doctors. drug/drug interactions with any pharmaceuticals you're getting you wonder why it's ripe that's why it's ripe there's a lot of things you can think about. >> absolutely. we started to see the very beginnings of just what you're talking about in the past few years. these companies have started to forge deals with health systems. they have been pulling in all kinds of data and using their machine learning to do exactly what you just suggested, predicting disease, figuring out

who is going to get sick it's all happening now >> even basic science. >> even basic science and we have even -- >> you need to use computers and the merging of i.t. and biotechnology and rational chemistry, all of that stuff is merging. christina, you need to stay on this beat. you have an odd san francisco accent, but i'm going to go with that i guess you have lived there quite a while. thank you. >> san francisco by way of london >> oh, see, i knew that. anyway, happy new year good to see you. for more on the story, you can read her story on cnbc.com i knew that. >> coming up, before potentially going public next year, airbnb is taking steps to insure the public and investors it can control its plfoatrm a look at what the company is doing straight ahead cr eated by apple, so it's simple and transparent with a new level of privacy and security. it lives here and here. and it will save you 6% on products at apple;

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20 states, 20 so far have legalized sports betting in one way or another with more expected to pass legislation next year, more than half of the country may soon be able to place their bets for more on what that could mean for gambling revenue and the future of sports betting, i'm joined by chad millman chad, i talked about this a lot for the last, i don't know, ever since i joined draft kings

i think it makes teams more valuable i think it makes the rights to broadcasting, the events more valuab valuable i watch many more events i have four bets today on bowls i would have never known existed before not big bets, and i started with bowls i never would have known existed on >> i think it gets close i think there will be always be a couple of hold overs that don't get there. by the end of 2021, we're projecting the action network 37 states would have legalized sports betting that means well over half the country will have access to sports betting you mentioned new york you're many jeer srsey and studs

there. in new york, 44% are happening within two miles of the state line there are so many people who are coming in from new york and north jersey and philly and south jersey and making bets and going back >> i worry when i hear things like that about what we're doing. it's not a lot of money i'm using. i'm watching the games that i would not have watched before and enjoying them. i get mad when i'm losing and every play matters and they don't hit a free throw it reminds me of when i used to do march madness i've watch all 16, 32 games whatever is on a given day isn't that good for the sports and for the media people that broadcast these things >> absolutely. on cnbc, you guys had the owner o of the giants on when he talked about could there be a correlation in the up tick in

ratings in the nfl to the advance of gambling and legalize betting. i absolutely think so. i think it keeps people engaged for a long period of time. once the tide has turned and people have decided in position to power within the league, if they have decided, okay, this is something we're not going to be able to stop, they are embracing the idea this will keep people engaged in our sport and not just in our sport and watching them on television it's going to keep people engaged in stadium for much longer think about the ways in which the legal states are activating for much longer periods of time. >> you'll go in for game betting. you bet of every nfl game and you have a winning record. >> i bet on every niefl game ths year, on 256 games i finished 141-3 it's insane. >> with the spread or just win or lose?

>> that was with the spread. if you're winning at 52.4%, you're clearing cash you're making money. >> that's not the point. i just like to keep score. here is who i got the day and people i promised them and every one wants to do the opposite navy giving two and a half, florida state getting three and a half and i got kentucky getting two and a half i don't know what you think of those. i can't believe i'm betting on the red box bowl there's like 50 bowls. >> you're betting on the belt bowl don't be ashamed of it just own it. >> i'm owning it thank you. we got to run. next year's most hotly anticipated ipos with plenty of controversy in 2019. air b and b, people sleeping in your bed a lot of work to do to convince

investors it can control its plats fo platform a look at what the company is doing.

this year the renaissance ipo et if is out pperforming

air bnb the most anticipated investors and regulators will have questions regarding safety practices. joining us is a reporter ot the wall street journal. when you look at any of these situations or any of these anecdotes, they are frightening. just like the uber incidents are frightening. there were a billion rides if you do the percentages it's like you'll get eaten by a shark before something happens that doesn't matter. it's still frightening some adult gets in with a 7-year-old child at an airbnb. what do you do about that? >> the question is not just about numbers. it's really about how much is airbnb is doing to police these problems and how much should it be doing which is the big

question for all tech companies. >> how much different countries, states, cities, how would you get a standardized background check to make things safer isn't that part of the territory when you do this in. >> background checks are really complicated. what we try focus on here was to look at the companies efforts over the years and what they tried to do, looked at doing and didn't do. what we really found is that some members of their trust and safety team in charge with users safety wanted to do more and were overruled on some points. >> what would you, if you were in charge, if you were clean, what should air bnb do should there be something -- all around the world or in how strict should they be.

>> you know i don't think i can get paid enough. some employees have tried to do over the years and kind of got push back on because it would stop growth. one of those was a big debate over whether or not all users should be required to show a government id like a driver's license. some members of the trust and safety team really thought this would help weed out bad actors you've heard about all kinds of problems like theft and people watching >> we do have a comment. i guess i have to read that and go to the next show. thank you for your time. here is what air bnb said that we do not solely rely on

government identification because they are not globally accessible and strongly believe it's better to ensure the identity of the users. the decision by the company including the ceo is related to reasons other than the best interest of users is simply wrong. i didn't know how long it was. we got it in thank you. power lunch starts now happy new year, joe. here is what is new at 2:00. three hours to go to close out 2019 rocking rally the s&p on track to end up 30% but what can you still buy to ride the wave into 2020? we'll talk about that. uber and post mates fighting back against california's new gig economy law set to go into effect tomorrow.

> power lunch starts right now a quick look at narcotics as we head toward the last few hours of trading today stocks lower at the moment check out the moves for the year the double digit gains across the board in what has been the best year for the s&p since 1997 bob has more on this year where you could virtually buy anything and make money this year, bob. >> it's a rare event, bill not just u.s. equities you really had to work hard to lose money in equities in 2019 people complain it's a few stocks like amazon and apple still a good year. here is what i find most encouraging.

china is represented by the mch. it's also up 22% call it a 20% years. what will happen in 2020 i don't know i like to point out if you include dividends which you should be doing over the last 90 years the s&p 500 is up 72% of the time year over year. 72% of the time, down 28% of the time the cynics say you can't have another 20% year yeah, you. it's not that unusual. 36% of the time the s&p has a 20% or more advance year over year the cynics like to say what about the 2010s. yes the 2010s were a bad year. decade over decade, this the 2010s. you would have loss money at the end of the year.

nobody bought in 1999 and sold the the bottom in 2009 that's what you do over in year periods and the odds are with you over many, many years. back to you. >> all right see you in a bit meantime, investors are optimistic businesses are optimistic. the white house is optimistics listen to white house add vivis. >> i'm look forward to great 2020 i'm seeing real gdp growth i'm seeing 32,000 on the dow >> 32,000 on the dow for next year i'm trying to read the expression of our next two guests to see what they think.

is 32,000 on your radar screen yet? >> i think cautiously optimistic is a good way to put it. we've had a better year than any of us expected in 2019 >> michael, lot of the head winds that we were talking about in 2019 are falling by the wayside. the trade war with china we have the trade deal now with canada and mexico. the fed self-proclaimed out of the way for a while here growth over seas a starting to pick up a bit. what could go wrong here i guess is what i'm asking >> well, you're right. at this point, my only point would be when things look positive, look out the risk factors are clearly defined. i think going into the new year,

yeah, recessions don't start with this sort of fact pattern i think initially it's a good period i think as the year moves on you'll have the u.s. elections taking pre ining pres dent. you've always got gerks o political risk any one of these risk factors could be the first domino to changing the dynamic at the moment you just don't see it the other thing to keep in mind is not only did equity vs a good year but every asset class seems to have its day in the sun.

>> we are still overweight u.s we prefer technology understanding it's expensive we like software in technology in the industry space we like machinery. we also added back some dividend growing utility type things as buffer in case we hit a bumpy patch to the down side >> michael, your theme and which stocks or sectors? >> on the equity side it would be areas that haven't kept up. if you get a global growth story resuming then that will likely decrease the value of the dollar which will make emerging markets a non-u.s. for the first time in a while be better performers investors have been going break waiting for those markets to take off that's why the u.s. has been so good for the last several years. we see the u.s. continuing but we also see broader participation globally in the global growth story takes off. financials, transport, industries, materials, energy.

those sorts of things that will be levered to growth versus consumer staples and some of the things that would be more in a recession driven type situation. on the fixed income side, interest rates are uncertain we're still relatively short duration and high quality balance sheet. we like precious met dals like gold and silver. we think those assets hold value ra regardless >> thank you happy new year >> you as well fascinating story developing involving former nissan ceo. he has fled japan somehow and now he's in lebanon. he reportedly got there in a musical instrument case. i am not making this up. phil joining us with more. this is like a robert ludlam novel. what happened here >> if you came up with this

script, people would say it looks farfetched we have heard through carlos he issued a statement late last night and part of it gets to the heart of how he feels he has just been in a terrible situation. that's not even the -- i have a escaped injustice and political persecution. i can now finally communicate freely with the media and look forward to starting next week. when we do hear from carlos ghosn, we haven't heard from him aside from a statement that's been released by his attorney or his family we haven't heard from him since he was arrested in 2018. shortly after he was arrested he was removed as the chairman of nissan he was indicted for financial crimes after that. he did post bail of about $6 million in march and since april he's been under house arrest and while that has been going on, we haven't heard from him nissan will take a look at the stocks since november of 2018.

not only is carlos no longer running the company, he's out completely he was voted off by shareholders the ceo who replaced who many say orchestrated the arrest of ghosn has been removed from the company. they had failed potential merger it's ban total mess. bill, you're right, this is a fascinating story. we can't wait to hear from him next week. >> lebanese government officials have acknowledged he's there he's welcome to stay they say we have not heard from japanese officials or have we? i have not heard anything yet. >> i have not either we are now in the new year's holiday over in japan. that's one of the big holidays of the year there. i wouldn't be surprised if we don't hear anything unless perhaps the end of this week >> i mean, he was facing trial this is unbelievable that he even got out of the country.

that's the part i can't wait to hear about we want to know the disposition of the legal charges against him and what will happen but how in the world did he get out of japan in a musical instrument case >> you have to wonder. >> hopefully a tuba or something. >> you have to wonder if somebody may have known in the gov government and said i'm going to turn my back having said that, this was such a high profile case with an executive until he was arrested was widely, widely respected within japan over the last year this has played out he's been kept without communication with his family i think a lot of people have really questioned the legal process in japan >> crazy just crazy we'll wait until nec week if we hear from mr. ghosn at that time thanks happy new year >> you too the gig economy ground

uber and post mates are suing california over the new law. marijuana stocks up big today heading into 2020 with high hopes what could turn it around? your pot play book is next on power lunch. ♪ ♪ ♪ ♪ ♪ ♪ don't get mad. get e*trade, dawg.

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2019 wads supposed to be the year marijuana went mainstream but it didn't quite work out

that way, at least not as far as the stocks were concerned. we have your 2020 pot play book. >> reporter: there were high expectations for cannibas stocks it took a plunge in the second half here is what to watch in 2020. first cannibas company comeback. a roll out of stores in canada put pressure on legal cannibas companies. it could get a boost with more stores slated to open in the first half of the year the hold up that's fueled the black market has been caused by confusion between the national governments between supply and demand second, consumable cannibas. there will be a push for consumables to be standardized so customers know what to expect with each use similar to alcohol. products are generally higher priced and higher margined than

traditional inhaleable products like cannibas flower and pre-rolled cannibas. that means drinks and edibles could be an opportunity for higher revenues. third, no legalization the u.s. legalizing may be coming sooner than you think as the presidential election approaches, getting the full house and senate to vote yes could be a challenge more states are passing bud bills. this year michigan and illinois became the 10th and 11th states to make recreational use legal several others have grass roots efforts under way. >> perhaps people think they hit the low. in it's been one of those situations where a hot stock market has cooled off but those sectors that have been lagging this year are finding new life

as we head to the new year frank, thanks. happy new year pot stocks are soaring today as more states move to legalize recreational marijuana use but in general 2019 has been a pretty rough year. till ray down more than 70% for example. our next guest says we could see a green 2020 joining us matt hawkins. thanks for joining us today. >> thank you, bill >> what are you expecting to happen next year that will make the marijuana stocks more profitable >> well, what's been great for us is we primarily invest on the private side what you see this past year has been a major correction in the industry on the public side and the private side having said that, i think that we have been stating all along we think we have hit the bottom. i think that the regulatory agencies of the larger states, california, particularly, getting the message that more

effective regulatory efforts along with reduced taxization on the companies that are doing this the right way will lead to a tamping down of the plaque mark - black market you'll have situations where the companies that are public right now are being judged on pathways to profitability and not license segregation like they were year, year and a half ago. >> we have found that regulation vs be have been so stringent or confusing that many small companies trying to get involved in the recreational pot market have found it very difficult to comply with some of these regulations and that in part is the reason the black market is still flourished there are we over doing the regulatory frame work when we're trying to allow an industry to grow at the same time? >> you're absolutely spot on

what states like california need to realize that reduced taxization is the main problem here if we can get lower tax rates on the company's that are doing this legally and the right way then you'll have a lot more companies be successful and you'll have a tamping down of plaq plaq black market then the black market has no reason to go away. >> are we being too impatient expecting the stocks to provide a return when let's face it this will take a while to get various governments to accept legalize recreational marijuana it's not likely we'll hear anything on the federal level for quite some time.

more institutional players are starting to raelds thealize thi undeniable industry it's not going away. we have some wood to shop left on some other piece of legislation that are coming down the pike >> very quickly, i think one of the biggest hurdles the industry faces is the banking industry itself and legal imbow they find themselves in where banks don't want to do business with them because it's still illegal federally. how will they get around that. can they get around that and where do you see that going?

we think 2020 will be a fantastic year to take advantage of the opportunities that have been brought back down to a more realistic level. >> we'll see thanks for joining us today. >> thank you happy new year >> happy new year to you as well time for a new york stock exchange tradition traders getting ready to say good-bye to the old year with the traditional singing of wait till the sunshines nelly ♪

>> happy new year. a tradition singing barbershop quartets what a difference a year makes we closed out concerns about an earnings recession now p we have almost the exact opposite your thoughts. >> the fed finally learned to behavior itself. history tells us when you have market that's up 25 to 30% that next year you get up somewhere between 6 and 10%. we'll hope for history to hold up >> thanks for coming down and being friends. i want to thank the world's best producer she's been with me many years. happy new year, everybody.

>> happy new year. >> to you bob and our dear friend and the familiar faces there at the new york stock exchange next, our traders have two ideas for 2020 and where the charts are saying bye. plus, you've heard of tennis shoes and baseball sneakers but now adidas is making a big bet on a video gamer to sell sneakers as well that story and much more coming up on power hundred mp apple, so it's simple and transparent with a new level of privacy and security. it lives here and here. and it will save you 6% on products at apple; like iphone, apple watch, airpods pro and so much more. ♪ apply in as little as a minute, right in the wallet app.

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welcome back to power lunch. check out this chart according to one of our next guests it's among the best this year maybe heading for an even break out in 2020. it's the regional bank etf this is the group, this one i was cautious on for more than two years had turned bullish on in august when i saw a low on interest rates but thought they would pick up.

i think long term interest rates could move higher. they don't like the negative interest rates situation as they move up, i think our rates will move higher as well that should help the yield curve invert the inversion -- the yield curve steepen more than it has been. you look at the chart it's broken out of the sideways it was in for more than 11 months it's a little over bought but if you can hold above that level it will take off. >> i think it's a fake break out. mainstream economy begins to accelerate in 2020 i think the opposite happens i think most of the stimulus from deficit spending has been

in a system. we'regoing to be flat on rates and perhaps even go down lower on rates if the economy begins to slow. all that will put pressure on the kre as we go forward the one up with siside would bef pressure ambulances and we have pressure, that's not good news i think there's more danger than reward at this point as far as the banking sector goes. i would not want to be trading it the one point i would concede is we have a discrepancy between pmi and data if you see that in next couple of months, if ism shows resurgence then i think the kre gets confirmed asaid from that, i would not come near it right now >> the expansion still has a while to go. you have to believe it would help the banks in general.

thanks very much for more trading nation head to our website or follow us on twitter. bill, back over to you thank you. still ahead, uber and post mates are suing california over that law that would reclassify contract workers as employees. california congressman who represents silicon valley will join us next to talk about it. rj taking a shot at spirits whiskey and champagne are caught in the middle of the u.s. and europe's tariff fight. we'll hear from the president of mikter's distillery and look at a bottle that costs $10,000. - [narrator] at southern new hampshire university,

we're committed to making college more affordable. that's why we're keeping our tuition the same through the year 2021. - [woman] i knew snhu was the place for me when i saw how affordable it was. - [narrator] find your degree at snhu.edu.

welcome back here is your cnbc news update at this hour. riot police moving in on pro-democracy protesters who flock to the streets of hong kong to usher in the new year. the semiautonomous city tone ed demonstrations the u.s. army is the latest military branch to ban the use of tik tok service members are banned from using the app on all government owned phones the pentagon has issued gu dance to discontinue using the app as a way to address cyber threats musicians from the paris opera have gone on strike over proposed pension reforms they ushered in gnaw yea new ye protests by playing excerpts of carmen of romeo and juliet

a fireworks display lit up the skies of bangkok crowds celebrated as they marked the beginning of a new decade. you're up to date. that's the news update this hour back to you. thank you very much. with 90 minutes left in the trading year, stocks are lower across the board but there are some stocks making big moves today starting with nio. the chinese electric car continuing the search again. stock up 160% in the past three months meritor is soaring it's being added to the s&p 600 small cap index. that means index fund managers have to buy that stock we head into the new year when

surely many weight loss resolution will be made. the oil markets closing for day. let geese let's go to kate rogers. >> kruds oil sticrude oil still its biggest gain it snapped a five-day winning streak despite weakness in the oil market, the energy sector is on pace for its first update and is still the best performing in the s&p 500 this month as we look ahead to 2020,a ag analyst are cautious noting that non-opec growth could keep a lid on oil prices they are watching developments in iraq after protesters stormed the compounds in baghdad back over to you the gig is up as uber and post mates are suing the state of california over the legislation that would force the company's to reclassify their

drivers as staff employees rather than freelance contractors. that law goes into effect tomorrow on the line with us right now is congressman ro khanna who represents california's 17th district thanks for yojoining us today >> good to be on >> why was this law necessary in. >> it's necessary so that drivers can have some benefit of the gig economy. you have uber that's worth $50 billion. you have the founder selling his stock for billions of dollars and the people are driving the vehicles haven't got their fair share. this law says when you have a company that's as profitable as uber in terms of their market value, then make sure the people doing the work, the drivers, are benefitting as well. >> some wonder if this bill was too broadly win. it includes freelance writers and other industries that have nothing to do with uber and lyft

and post mates and companies like that. how do we reconcile that i have a friend that works in the freelance and she's fearful no publisher will hire her now because they will have to put her on staff did we over do this? >> i think the primary lace place was for the gig economy and uber and yft, post mates and door dash, some niche industry if they need exception they can work to reform the bill and there are certain arounds. they recognize and can't exploit workers and need to make sure they have basic health care benefits >> at some point, yes, maybe

they underpay those contract workers but history suggests, economically, that those workers come together, maybe find a union that can represent them. in other words, a private market solution to this why did the government have to get involved in that and will you then find yourselves getting involved in other industries that may have pay disparities as well well >> that's the point of the law to allow the workers to yun i unionize when they are independent, they can't unionize unionization has allowed workers to claim their part of the economy and to have wages that allow them to be part of the middle class this bill is saying if you work in the gig economy you should have the right to unionize and bargain for fair wages >> let's be honest, this bill, now you're getting this legal challenge from uber and post mates. this will be challenged in court. is it possible this law will be

held up in the meantime? >> i think so. i think the argument is very weak the argument that they are advancing the bill will violate the equal protection rights and no reason to think that uber or post mates have been singled out. i don't think a judge or anyone looking at this will be sympathetic when you have a company come in that is worth 50 billion where the founder has cashed out for a bill dollars and said you can't afford to pay workers $15 and provide them over time benefits and provide them with health care benefits the dispute is the rewards of the technology revolution have gone to a field. we're seeing the legislatures is let's distribute it. let's make sure every one working in this new economy is benefits not just the very, very top. >> congressman ro khanna, thanks for joining us happy new year >> happy new year. thank you for having me on

>> you bet we dig deeper into this war on tech that's ramping up in the golden stats ae and what it mea for companies like uber and lyft and truck driving companies. stooe he ignored my question about these other industries that have been caught in the net of this bill >> i noticed that. >> that's a real problem for some of those industries >> you brought up a good point during the last hour is that this is poorly written >> it felt rushed. >> an iuber driver will tell yo one, i love the freedom. i love being able to set my own hours. i can end my shift with the press of a button after two hours or 12 hours. or they tell you i'm getting stiffed. here is travis making billions of tladollars off my hard work we're not getting the same benefits as full-time uber employees. it's not written in such a way

they can choose. that's why there are two uber drivers on this lawsuit. they want that flexibility and that dynamic job where they can choose their own hours and work when they want >> he misunderstood the question on the legal issue i asked whether it would be held up, not upheld are we going to see a stay at some point before tomorrow that would keep this law from being enacted? >> they are fighting it on multiple fronts. it's unclear if it will affect them tomorrow. they will do everything they can to ignore it the other front is they have this separate bill they want to go to the voters and say let's have the voters aside. let's hear a referendum and let the people decide if they should have this bill or not. that seems to be their two methods of attack against it >> it remains to be seen what impact assuming this law becomes

enacted, it's only in california, not in the other states where all these companies are doing business a and the impact it will have whether you see a decrease in business in california and it all goes elsewhere. >> you got to think about california too it's a massive market. these companies started in california that's where these workers got started. you have to think of moving dune the line post mates wants the ipo the last thing they want is showing all the costs associated with paying benefits to their fast network of delivery people. the last mithing uber wants is they are telling investors we will be profitable by 2021 this will hurt that. >> might delay that. thank you. >> thank you 2019 was great year for the gamer known as ninja who i found out about this year. he's raking in millions of dollars off his live streams now he is trying to get 2020 off on the road for his own sneaker. josh lipton you need good

sneakers to be a good gamer. >> that's right. it's called the ninja night jogger adult sizes cost $150. youth sizes 120. ninja isn't just a professional video gamer. he's a true global celebrity with more than 22 million youtube subscribers. he learns a lot of money when cnbc spoke to him, he didn't dispute reports that he learned more than $500,000 a month. a lot of that came from subscribers butcertainly sponsorships and deals help too. adi adidas isn't the only company looking to capitalize on gaming. puma introduced a sock like shoe that will help gamers perform at thinker best the shoes cost about 100 bucks there's nike which is the official shoe and clothing provider for an online gaming league the video game industry is a $171 billion market.

companies naturally want to capitalize on it if you wanted the shoe, you have to be quick. the adult sizes sold out in less than 40 minutes. back to you. >> all right josh, thanks did twitter ceo start a trend when he said he was going to live in africa for a few months next year up next we'll look at the other tech giants who are pursuing opportunities on that continent in 2020. stay with us

the ceo of twitter and square jack dorsey made big headlines when he made plans to live in africa he's far from the only one seeing the potential business

opportunities there. kate joins us from san francisco. >> jack's not alone by any means. big tech and venture capital are spending more time and money in africa one reason, massive growing population of young people there are more than a billion people across africa's 54 countries. av average age, 19. that makes it a natural market for tech google, facebook and microsoft have start-ups in africa alibaba is there too u.s. venture capital is starting to pay attention as well thanks to lower valuations. there's still only two of the world's 400 unicorns based there. we're seeing popular early stage bets around payments especially in nigeria they often invest along side chinese firms. they say government regulation

and scaling across the continue innocent as well as finding engineering talent is some of the biggest head winds >> looking at the growing number of consumers that they can cater to but from a manufacturing stand point as well. is that the idea >> a little bit. it's more on the infrastructure side think about technology, some of the existing systems aren't in place. people are saying that as more of an opportunity. they don't have to disrupt something that exists. you see huge opportunities in payments africa for the most part is the largest population of unbanked and underbanked people if you think about square, for example, or what facebook is trying to do there could be huge opportunities there. you're seeing that in nigeria especially a lot of fin tech companies are popping up in lagos and elsewhere. that's been an area of focus for venture capital.

>> i can hear people saying we have received those e-mails from nigeria asking for payments but that's a different story >> i've got an few of those. different story. >> happy new year, thanks. >> you too thanks, bill still ahead, new tariffs could take a shot at the booze business and cost you some money. we chat about the industry and make a quick toast the the new year as well, after this we made usaa insurance for members like kate. a former army medic, made of the flexibility to handle whatever monday has in store and tackle four things at once. so when her car got hit, she didn't worry. she simply filed a claim on her usaa app and said... i got this. usaa insurance is made the way kate needs it - easy. she can even pick her payment plan so it's easy on her budget and her life. usaa. what you're made of, we're made for. usaa

drink up tonight, because the price of your booze may be about to go way up we're going to talk to president of mictor's distillery about it in just a moment, but first, here's kayla tausche with that story. >> that bubbly you're toasting with may double in price in a few weeks. the white house considering a 100% tariff on french champagne and cheese by mid-january, barring a major breakthrough on global tax talks and an existing 25% tariff on european whiskeys and wines could rise to that level, too. it's part of the trump administration's effort to combat attacks on big tech and unfair aircraft subsidies. bill thomas owns this d.c. whiskey bar, and he says the impact of rising cocktail prices

here goes beyond the top shelf >> that could ultimately end up adding 20 or $30 for an evening out, which after you add in car service to get to and fro, being safe, potential babysitters or child care, the evening is just already becoming so cost prohibitive. >> more than 300 companies have reached out to the federal government, warning of the impact on importers and distributors the first line of defense against tariffs. footing the bill at the ports well before that port ever makes it to your class bill >> kayla, thank you. for more on the business, let's bring in joseph maglioko, the president of mictor's distillery you already face tariffs you've had to pay tariffs not just for china, but mexico, as well, right? >> eu, canada, et cetera so our business at michter's has

performed quite well i'm not an expert on wine tariffs and stuff, but when it comes to american whiskey, the tariffs start to come in in the middle of 2018 in june and the first half of 2018, before the tariffs, american whiskey was growing abroad at 28%. the second half of 2018 after the tariffs came in, american whiskey business fell by 11% and that downward trend continued through the first nine months of 2019 with an 18.5% decrease in exports. >> what kind of tariffs are you paying right now and what was your choice raise prices or just eat the tariff >> it was a combination. that's what we decided to do you know, in certain cases, we worked with our importers and, you know, trying to still hit price points you know, michter's is a luxury item and we're super premium whiskey, so perhaps a little less pricesensitive than others, but in some cases, we

did help our importers >> are you affected -- as the cnbc staff will tell you, i may have tasted a manhattan or two in my time -- okay, maybe just last night more craft distilleries are popping up, like they did in the beer industry for a long time. there's a lot of competition out there now. >> there's a lot of competition. but i think it's great for consumers and for the industry there's a times article recently that pointed out that over the past two years, there were 400 new distilleries in the united states, and i think that that's great. >> that's crazy. >> one of the things -- >> are we going to drink that much >> you would hope so >> it remains to be seen the american whiskey business is still growing, despite everything and i also think there's also reason for optimism on the trade front, too especially with the phase i china deal being announced, the president's going to be signing that into effect, and the mexican tariff, of 25% american whiskey was taken off in may the canadian tariff of 10% on american whiskey was taken off in may but i think there's reason to be optimistic, as well. >> we've got a minute left

i don't want to give short shrift to this, but tell me about the big batch you're selling right now. is any of it available still >> there's some available. only 277 bottles were being released worldwide it's being offered at littlenell in aspen for $10,000 a bottle. or you can try it for $1,700 a bottle in new york all of that being said, we put the same care in effort into making our $50 bottle u.s., but this is a quite special whiskey. whiskey from six extraordinary barrels put together s >> i was going to say, if i had to post another show today, i would probably pass, but this is from the $10,000 bottle? >> that is true. 115 proof. >> 116% proof just to make sure -- >> am i allowed to drink this on camera >> it's new year's somewhere in the world, so. >> mm, mm.

>> a real cascade of flavors >> oh, my! >> a lot of different flavors. >> that is unbelievable! >> you're so kind. >> the flavor is really good there. >> you're very kind. it doesn't taste like 116% proof, either. >> no, it does not we'll have the rest of that a little bit later joe, thank you so much, bill >> happy new year. >> happy healthy new year. we'll have a sonecd round on check, please! coming up after this (upbeat music)

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as jackie gleason used to say, wow, that was some good booze. and i'll tell you, at 115 proof, i can't feel my lips anymore that was unbelievable! anyway, happy new year, everybody. i know wilfred frost is a rum drinker. it's in the family i don't know what contessa drinks, but you're about to find out as "closing bell" gets started right now. have a good day. >> happy new year to you, as well, bill i hope you're enjoying the rest of that bottle, as we speak. welcome to the "closing bell." the final hour of trading of the year, you can see, celebrations kicking off in dubai that is the burj khalifa the tallest building in the world, still, contessa 830 meters >> and look at the fireworks coming off of that of course, dubai has become a big international tourist destination for new year's eve, among the likes of new york city and london and hong kong and singapore. >> and it's also a big financial center bu