health care. trying to figure out how to monetize it. >> joe. >> union pacific i like the quarter and stock above 200. >> that does it for us "the exchange" starts now. >> welcome to "the exchange. i'm brian sullivan the deadly coronavirus affecting china affecting everything from hotels to airlines, the economy and more straight ahead. goldman sachs ceo has advice for any company that wants an ip och i ipo, get diverse and now will other banks follow suit are you not happy with the smile smile direct gave you? you better not tell anybody or they might sue you seema mody has the numbers. >> investors have been spending

this week trying to assess the market impact by the virus, elevating concerns around the corona virus and concerns associated with it we're currently down 142 points. defensive sectors like real estate are higher on the day energy remains the worst remaining with oil prices continuing to sell off some of the travel and china-related names, down nearly 6% back to oil. major oil producers are trading down not just for the day but for the week marathon oil, down over 9% just this week as oil prices trade lower. back to you. >> even more amazing, considering much of libyan production is offline. >> yeah. >> now to the news that is reverberating through china and the world. the coronavirus outbreak the world health organization is holding its second meeting in as many days to update the public meg tirrell joins you now with

the very latest at this point. what do we know? >> we're waiting for the w.h.o. to hold a conference after that second meeting that news could come any time. yesterday, they kept meeting, because they needed to keep discussing this. new case counts overnight and over the last few hours from china, showing this is ticking up quickly more than 100 cases than we saw yesterday. over 650 now one additional death putting the count now at 18. it has moved to some additional countries, singapore being one of them, and some additional areas around china still just one confirmed case here in the united states. even though the w.h.o. didn't feel comfortable yet yesterday, tlaring this public health emergency of public concern, they did give information about the virus. people are very interested in how it spreads and how well it spreads among people

what they said was the evidence so far shows it spreads between close contacts family members or caregivers there isn't yet evidence it spreads beyond that. ongoing transmission that will be incredibly important as they try to gauge hoe big this could potentially be. >> when you talk about close family members, sneezing, coughing, it might sound like it might have to do with how long you are exposed to somebody who has it. >> theatrical. >> you're around family members more than passing a stranger on the street, but we're not really sure. >> we're not sure about any of this yet it does sort of follow the more time you spend with someone who is sick, the more likely you are to get sick, too. this outbreak could not have come at a worst time for china lunar new year celebrations are about to kick off, it's a week-long holiday and the b

biggest event in china china is canceling many lunar new year celebrations and shutting down, or trying to, entire cities, including wuhan, where the virus is thought to have originated. eunice yoon is covering that. >> reporter: it's seven cities and 23 million people under quarantine because of this virus. the cities are clustered around wuhan, as the epicenter of the outbreak wuhan residents are being told to stay at home and not leave the city authorities are making sure people don't travel outside. in fact, all public transport has been suspended outbound trains and flights also suspe suspended. no private coaches, ferries, no chartered vehicles as of tonight, you can't use car-hailing apps very limited taxi services the only way out at this point is if you drive your own car or

convince a taxi driver to take you on to one of the highways. if you do get to the highway, you should expect a health check. the government has been under criticism both at home and overseas for being a bit slow to respond. it seems as though beijing is moving in the opposite direction and going into overdrive the authorities announced tonight that they're tapping into strategic reserves for rice, cooking oil, pork, among other daily necessities in order to ensure supply they're calling on companies like jd.com to continue to deliver to wuhan and coordinating factories to boost mass production to at least 8 million a day, according to one of the -- the industry and information ministry that ministry has also said they are releasing protective suits, gloves, gear from the nation's medical reserves lunar new year is an important time for consumer spending as brian was talking about, it's a time when people like to go out. they want to be with their

families they travel across the country to be with their families. sometimes it's the only time they get to see each other there's a lot of spending that goes on. already there are signs that spending could take a hit. china tonight offered refunds for all domestic flights and train rides. all seven of the chinese films that were supposed to release over the lunar new year holiday have been pulled beijing, wuhan, zhejiang and macau all canceled their lunar new year it's akin to the west deciding they're canceling christmas, thanksgiving, july 4th celebrations, something you wouldn't expect at all it also points to slower economic growth at a time when china's economic is already slowing down. >> we looked at a map yesterday or chart of the sars virus in '02, eunice, and consumer spending took a hit.

it did bounce back ultimately but it got slammed we showed this map, eunice, of wuhan and some of the surrounding cities where is this in relation to major population cities like beijing, shanghai, shenzhen and hong kong? >> some of the important highways link the cities that you mentioned. wuhan has been trying to make itself even more relevant for road travel as well as railway travel they've made it a point to cut down the travel time to as little as two to three hours in many of the major cities, wuhan to beijing or wuhan to shanghai. it's an important place for car production gm has a plant there

the city is trying to make its travel and infrastructure much more competitive. >> eunice yoon, thank you very much. buying bonds, perhaps, on concerns about that coronavirus outbreak yields have fallen from 1.28% to 1.7 in days. bonds, that's a big move bullish about bonds in general inflows for the week of january 15th was the fourth highest on record what might that tell us about the equity markets crescent capital and managing director at ubs private wealth management, allie, investors seem to be buying stock, gold are they more bullish now than they were a month ago, and are they buying bonds? >> so we are not seeing buying

or positioning consistent with those bonds. there's a fallacy that fund flows will stop. stocks went up so extreme relative even to bonds in that move-up that this is just rebalancing and it's coming a lot from outside the u.s., actually it's coming a lot from europe, japan. so we don't take that as a bullish move on bonds, especially as we're sitting here with moody's index at a 70-year low. so what we're seeing more is clients really interested in getting into dividend-paying stocks when you have a 2% dividend yield on the s&p, that's pretty compelling >> xlu utility etf was up 10 or 11 days in a row some of these utilities which, by the way, are publicly regulated entities, are up 25 and 30% effectively in a year. are we getting a little bit silly in certain parts of the

equity market? >> well, i think the equity market is silly because the bond market is irrational the bond market is irrational because, of course, the coordinated efforts of global central banks buying $14 trillion of bonds worldwide and many of those programs are still in place in fact here, even still here in the united states. so, i think that if you look at the bond market, bond yields relative to where we should be in the economy, you know, we're growing at around 2% we've got another 1.5% inflation rate i think the ten-year should probably be at least 3 1/2 because these rates have been held artificially low and are lower abroad, we're probably the cleanest shirt in the laundry basket so we are getting those fund flows. i do think, you know, if you're trying to generate yield, do it from the equity market.

>> that seems to be, alli's, every theory, right? you have 13, 15, 16 trillion of negative debt. apple looks pretty good by comparison is there anything that you see at ubs that's inexpensive now? maybe not overpriced but anything still cheapish? >> it's the right question first of all, you have to be rebalancing, because last year definitely threw off most people's portfolios. >> from what into what >> at this point we're taking a little from -- sort of staying where we are in the u.s. and putting into em, emerging markets. emerging markets really performed well last year at 9 to 13%, but they didn't outperform or even perform relatively relative to u.s. markets so we think that with the trade deal behind us, with china being 70% of the capitalize of most emerging market indices and with a dollar that should fade a

little and support sovereign debt in the equity markets in those areas, that's what we're going into. >> energy infrastructure, jack, you think is relatively sort of, kind of inexpensive. what does that mean, energy infrastructure >> sure. that means the c corps, the pipelines and so forth that have a c-corp structure not only are they cheap but table-poundingly cheap they're in the 25th percentile of their range the rest of the market is probably in the 75th percentile of their historical range. it is one area of the market that sticks out to me as pretty cheap. >> not a lot there jack ablin, alli mccartney, thank you very much. have a good day. here is what else is ahead on "the exchange." >> announcer: coming up, goldman sachs ceo has a clear message for anyone looking to work with the company on an ipo.

we'll discuss if it's the right move for the company >> plus, checking out? as the coronavirus takes a toll on the travel industry, we'll look at the hotel industry and the names best positioned to deal with the changes. and why one analyst thinks the recent rally in ge can continue this is "the exchange" on cnbc (upbeat music) - [narrator] at southern new hampshire university we're committed to making college more accessible

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welcome back to the exchange making news in davos, tying their support to ipos to the diversity of the board of the company wanting to sell stock. >> starting july 1st in the u.s. and europe, we're not going to take the company public unless there's one diverse board candidate. >> really? >> with a focus on women and we're going to move toward 2021 requesting two we realize this is a small step but it's a step in the direction of saying you know what? we think this is right. >> goldman joining a growing trend of companies pushing for more diversity, not just because it's the right thing to do, but because it pays off for companies. deirdre bo deirdre bosa is live.

>> diverse boards deliver a 36% higher return on equity. few studies by harvard shows that having more women on the board results in less aggressive risk taking. as solomon said this morning goldman could lose out on some business in the short term but in the long term it will yield better performance you mentioned this he's not the only one. black rock and state street have pushed back against companies with all-male directors, here in california and listed in major u.s. exchanges are actually mandated by law to have at least one female director, but there are, brian, important questions about the pipeline a lot of what i focus on in the private markets. how early do you get women in? some of the biggest private companies still have boards without a female director. that includes insta cart, jewel. >> what this might mean for companies for ipos for america

joining us, distinguished journalism fellow and author of "that's what she said. hard to believe. what is this, 1978 hard to believe there are still major companies, public or private, that have pretty much all-male boards. >> brian, i cannot agree with you more first of all, okay, great that he said we want to have one person, diverse person on the board but what took so long? the research that deirdre referenced, there is reams and reams of this research that goes back more than a decade. we should have been seeing this way, way long ago. i agree with her, we have to look at the pipeline, but even earlier than when companies are going public we have to look at companies as they're starting to hire. >> sure. but we can't knock goldman sachs too much here, right goldman sachs is the one that is -- maybe it's too late, but at least -- and it's not their board. they're talking about other companies. >> right. >> we're not going to take your

money unless you do this there's got to be at least some bell ringing for them. do you think, joanne, that others -- here is looking at all the other banks out there -- will follow? >> i think they will it's a good first step he said it himself, it's a first step david solomon said they might lose business because of it. in this day and age there's absolutely no reason why any company can't find qualified women to sit in those board seats. we're 30 years in of women earning more college degrees, graduate school degrees. women make up more than half of the workforce. we actually need to see more of these women who are emerging into board seats and they are qualified. >> i should say, goldman sachs, 10 board of directors for them are female. >> yes another point about goldman -- this is an interesting one, right? when i talk about we need to start this early on, half of entry level bankers are female

but only 20% of their partners are female we're losing women along the way and it's not simply that women are choosing to leave. it's that we are doing something in our workplaces that is really pushing women out of the workplace. we need to give them opportunities. >> on this ipo topic, we look at this and you talk about everything else. do you believe in some ways -- i'll take the other side, i guess. is it right for banks to dictate to companies effectively what they should be doing with their own boards >> in the perfect world, no, you don't want them dictating. i agree with that. >> if you don't do this, we're not going to do that >> i think goldman sachs is saying, look, until it is a cultural norm and a business norm to do the right thing by looking for diverse members of your board, we're going to have to actually make it a structural issue. you're going to have to abide by these rules. ultimately the goal is that we won't need these rules or

regulations to increase board membership because we will naturally be doing so. >> people are watching or listening, joanne, that are driving and thinking here we go again, you know, pc culture, trying to dictate to companies what they should be doing. let's be clear this is good for business? >> 100%. it's the one and only reason to do this. you have more women on your board, there's reams of research, as i said, that your return on equity increases by 36%. you heard that. >> 36%. >> 36%. >> not 3.6%. >> 36% higher return on equity when you look -- this goes back. there was a study that was done more than five years ago that looked at the opportunity cost of companies that do not have diverse boards and they

calculated it at $655 billion in lost opportunity. >> big numbers there goldman sachs making news today. joanne, appreciate you coming on thank you very much. >> my pleasure. post bad review of a company's products and get sued? it could happen. stock up 50% this year. plus cigna survey on loneliness and the results are surprising d 'sadescilyorhe kids screening at her house. hi. this is the man that's going to check your eyes grandma. cognizant ai solutions are helping healthcare companies advance diagnostics and prevent blindness in patients with diabetes. everything looks good. you have beautiful eyes. ♪

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containing this information. read it carefully. welcome back to "the exchange." shares of i max down 5% right now on news that theatrical releases planned for the upcoming chinese new year holiday will be postponed due to the coronavirus outbreak eunice yoon reporting that news. after a second coronavirus case was reported in macau, macau's chief executive saying he has not ruled out closing all the casinos if that coronavirus outbreak worsens and pharmaceutical company has been awarded a grant up to $9 million

to develop a vaccine against the current strain of coronavirus. in inovio, given the news, given the grant, we felt like it was appropriate. breaking news right now on wells fargo. wilfred frost has the breaking news what have you got? >> brian, this is pretty huge. occ is announcing that it has issued notices of charges and that it settled with three others the headline of who they settled with included in those three is the former chairman and ceo john stumpf who has agreed, it seems, to pay a whopping $17.5 million to settle these charges. clearly, a huge settlement for an individual to make, not the company. headlining the list of the five people that are facing charges and haven't yet settled is

carrie halsted, seeking up to $25 million from her one with wonders whether a possible settlement could have come in a little low we don't know what the original amount was sought from the former chairman and ceo john stumpf a lot of other names on this list which we could perhaps come back to a little later back to the start of this whole issue, it was the cfpb that got wells fargo as a company to settle for a couple hundred million. carrie halsted was fired for cause. john stumpf, former chairman and ceo was not fired for cause but did forfeit a huge amount of pay and incentive. off the top of my head i think it was $50 or $60 million at the time he hadn't been fired for cause but big personal settlements agreed by stumpf and sought by tolsted. >> wilfred, thank you very much. we've got a new update on that coronavirus from the w.h.o.

let's get down to meg tirrell who has that for you. >> w.h.o. was meeting for the second day, public health emergency of international concern. the word coming down, now is not the time it's a bit too early to consider this event that strong right now. they've only declared this five other times since 2005, including the two ebola outbreaks. essentially they said the committee was split down the middle whether to declare this a public emergency of health concern. potential severity and number of cases, half say, do warrant the concern. the other half says china is try taking moves to try to limit that spread. they're asking china continue to be transparent about information about the number of cases and everything else about the virus. brian, right now, not meeting that designation back to you. >> meg tirrell with that

breaking news. thank you very much. a lot happening in this hour, as you can tell. here is what else is coming up on "the exchange". >> announcer: ahead, ge's rally. grubhub rolls out a new strategy l brands continues to get lots of love from wall street and is smile direct silencing critics when its product doesn't produce a smile? that's all ahead on "the exchange."

love for a big industrial name, kind of. retail to believe in, digital delivery and feeling lonely. time for rapid fire. join the crowd nobody is lonely here. courtney reagan, seema mody. that's the story everybody wants. ge getting an upgrade from morgan stanley risks are on the decline and you've got to separate, seema, the story from the fundamentals. not a wildly bullish call but another nudge, i guess, for investors. >> i think it's quickly becoming, it really ranges from $5 to $18. morgan stanley, as you point out, brian, raising its price

target from $11 to $14 the big question is, is the company actually turning around? is there more growth opportuniti opportunities with empower the other big question is the impact of boeing 737 max ceo has said they acknowledge the concern around the delay and returning to service of the boeing 737 max but are trying to find different areas of opportunity within airbus and the military to get those engines. >> analysts saying don't sweat the 737 max. topic two, l brands. love continuing here, too, as well another upgrade today from barclay's that says change is afoot at the company upgrading the stock in the past three weeks. courtney reagan, an article in the washington post a couple of days ago that bath & body works, which they own -- victoria's

secret gets all the negative attention but bath & body works is killing it at the mall. the millennials love candles that's what the article said, frank. don't side eye me. >> i've never been in one. >> field trip. >> we were talking about this. >> we need a field trip. >> i don't know how he has lived his life so long, so fully. >> never seen "friends," never been to bath & body works. >> he used to live in alaska we'll give him a break. >> but truly, though, when you think about l brands, it's a company where we talk about the parent name and a lot of victoria's secret. we talk less about bath & body works, mall-based store, hand lotions, bath washes, candles. >> for the body in the bath. >> different colored lotions and soap, that's not for me. i'm more of an ivory, dove guy. >> you probably used it when you go to someone's house. very popular, continues to be when you go home for christmas. >> ohio-based company, l brands.

are they going to dump victoria's secret? >> a history of sort of buying or building brands, buying them and spinning them out. it's interesting right now that there are really only two. you've got victoria's secret and you've got bath & body works at one point they owned abercrombie. >> they grew and starting to divest, one of the worst performing retail stocks last year don't get all excited about the fact -- >> back to the point about the analysts, so many of them look at the company's history, l brands and say look, they'll usually spin out these companies and give the shareholders some kind of value. and they need some strategy transformation plans they say they're working on t we don't know what it is. it's an awful lot of hope. >> les wexner, who was widely considered forever to be the best, smartest guy in retail, sounds like a wkrp in cincinnati les wexner

seamlessly, if you will, let's move on. grubhub, new data shows that doordash has edged past grubhub, becoming the leader in digital delivery food space. in terms of growth, doordash has more than doubled its sales year over year. frank holland, they want to get into pickup. >> it's a huge business. >> thought they were a delivery company. >> that's the funny thing about it digital orders, half it is pickup, half of it is delivery delivery is more exciting because you have manpower, it's coming to people's homes and you can have things more convenient. the whole thing about this, it's a two-ended plate. it's on 50% of the market of $350 billion in restaurant spending they're hoping to make money on the hardware and software for restaurants, kiosk, kitchen ordering software. a lot of times the cooks are looking up its screens right now it's being tested at three chick-fil-a's. they want to get in on this digital ordering business. >> grub hub has to not revamp

but innovate its business. two weeks ago there was a report in the wall street journal it was potentially considering a sale you look at that historic q3 earnings report where the company said we are facing a lot of competition it doesn't just seem like it's doordash but these silicon valley darlings that may not be up to the public scrutiny because they're a private company, can spend more, and they're gaining marketshare as grub hub has been facing those challenges. >> ceo will be on "mad money" later today. >> yep. >> one of the questions, we got a sneak preview, is have you received any offers? he hasn't said he made any offers consolidation is a big part of this business. that's been a big part of their growth 143% dproeth year over year over grub hb that was the market leader in 2018. >> by the way, courtney, do you know where those chick-fil-a's are, one of them anyway? >> where >> the ohio state university.

>> what a great place. you can put anything there, it will do well. >> columbus, ohio. >> columbus is really a big test market. >> it is that and orlando. >> consumer test market, yes it's a good cross section of the country. anyway -- >> if you're feeling isolated, lonely, either at work or home, you're not alone kind of a sad story. cigna released the results of its study. bertha coombs reported this story. i put it on social media, ironically, because i thought it's an important story. people are sad even as we're supposed to be, quote, more connected than ever. >> this is one of the things that people in health care are focusing on, social determinants of health. when you feel alienated and disconnected it does affect your health this survey from cigna found overall we're feeling more lonely than we have been it's increasing. men showed a sharp increase year

over year. 63% said that they feel lonely sometimes or always as opposed to 58% of women. they had a less sharp increase the ones who are feeling it the most are the youngest of us. this is overall loneliness gen-z, 18 to 22, 73% of them said they felt lonely sometimes or all of the time and there seems to be quite a high correlation with people who use social media a lot heavy social media users are among the most lonely compared to those who are light social media useers for young people, brian, it may correspond with the fact that they are also early in their job career they may not have friends as long people who are at entry level, who have been at a job less than six months tend to feel lonelier than people who have been there longer, say for ten years, folks like us. we've been at cnbc for a long time we've created those relationships, we have more

in-person interaction. that's really the key, that in-person interaction that can help reduce that loneliness. a lot of health care companies are focusing on this and trying to push more interaction, at least with mental health, to try to give you the tools to deal with that kind of stress. >> the story, by the way, up on cnbc.com bertha, thank you very much. let's focus in on the work aspects, obviously, of this. so many companies, so many of our viewers work in an open office, as do we. >> uh-huh. >> does it make us feel more connected? we're supposed to collaborate. a lot of people wear headphones. >> i have to say, i don't think it does. if you want to concentrate and get a task done, in many cases, you wear headphones or where you do have private spaces to take a private phone call sometimes i fear i'm actually interfering with other people's ability to get work done. but then i'm isolating myself. productivity, we're all so much more productive than we were years ago because of technology,

not necessarily social media in general. as a result, we're all so busy working, frank, i feel like i don't know you we don't get to know each other. it's just a thought i had as we were preparing for this. >> we sit seats apart. >> it's true. >> great point. >> this is a great company. >> no, of course. >> seema, i've been at companies where i've had people email me, just me, who are sitting next to me i'm sure everybody who is listening or watching has had that it's about communication the one thing i want to say about the social media usage, you do wonder are people on social media because they're lonely or are they lonely because they're feeling more disconnected everybody is putting -- you young-ins call it your best life. >> living your best life. >> but it's fake it's phony. >> maybe you're less satisfied because you're on social media, looking at other people. >> that's what i'm saying, i don't have a yacht. >> we're so busy trying to be connected in the social world, are we missing out on the

ability of being in the physical world? >> four people at a table out together all staring at their phones. >> you can attest to this maybe courtney most people in the middle of the country don't look for their job for fulfillment. >> i think that's true. >> the way they do in big cities it's a job mcmahon, wwe, i'm going to paraphrase in business sometimes you have to eat crap and like the taste if you like your job, sometimes you have to deal with the other parts of it. >> ambition. >> that's an emoji, i think. >> frank, seema, courtney. >> i'm here for you guy. >> who is the loneliest person in business? >> the ceo. >> the queen. >> really? >> i do. just think about that. >> 201. >> i like that. >> group hug. >> that's right. unicorns may retreat back.

what do i mean by that and home construction etf now on pace for the ninth straight day of gains the home builders also rocketing higher we're back on "the exchange" ghafr is t music) - did you know that americans that bought gold in 2005 and even now many experts predict the next gold rush is just beginning. so don't wait another day. physical coins are easy to buy and sell, and one of the best ways to protect your life savings from the next financial meltdown. today, the us money reserve is releasing official gold american eagle coins at cost. for the incredible price of only $154.00 each. these gold american eagles are official gold coins of the united states, and are being sold for only $154.00 each. pick up the phone and call america's gold authority us money reserve, with nearly two decades in business, over $1 billion in transactions, and more than

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don't wait another minute. call now to purchase 1/10th ounce gold american eagles for the amazing price of only $154.00 each. last year, a year mark bid mega funded ipos and some of the flops that followed. given the lackluster performance, smile direct, lyft. is the era of the unicorn over julia boorstin joins us with more on that story. >> reporter: last year we saw raising billions of dollars does not necessarily translate into public market success. venture capitalist bill gurley tweeting, quote, if you raised more than $50 and are not

public, the presumption is you are losing way too much money. uber and lyft raised 14 and $5 billion preipo respectively. now in contrast, one of the lowest valued companies for last year's disrupter list, progyny raised $93 million and its stock has doubled. companies that went public last year that are trading below their ipo price raised an average of $774 million in bc funding. the companies trading above their ipo price raised less than a third as much. nominations for this year's disrupter 50 list are starting please go to cnbc.com/disrupters to nominate your company guys, back over to you. >> cool stuff. julia boorstin, will do. up next, with the

coronavirus spreading not just in china but abroad, japan, south korea, and one case in the united states, a look at the global travel impact, what it might mean for the big hotel chains and that for me is what teamwork is all about. you can't do everything yourself. you need someone to guide you and help you make those tough decisions, that's morgan stanley. they're industry leaders, but the most important thing is they want to do it the right way. i'm really excited to be part of the morgan stanley team. i'm justin rose. we are morgan stanley.

welcome back to "the exchange." w.h.o. has not declared the coronaviru the biggest celebration of the year lasted an entire week so how are the travel stocks navigating this threat to business joining us on the phone, harry, of the major publicly traded hotel chain, which one or two have the great esest exposure to travel within china? >> it would probably be marriott marriott has roughly 7% of their units located in china and that would be followed by hilton, which has about half as much >> is that a reason to avoid those stocks sell them now if you own them? >> i wouldn't sell them if you own them because they're wonderful companies and wonderful business modmodels

what i would say if you don't own enough of these great businesses, you probably want to wait a little bit to see if there's a travel restriction or warning issued by the w.h.o. and long after that, the buying opportunity tends to be at its best the company or the stock that has underperformed most as a result has been marriott >> and so the idea being wait this out if the w.h.o. comes out and issues that international travel emergency, you would anticipate these stocks would likely fall more then you wait and then that might be the buying opportunity. >> yeah and i think that's right although we're talking about degrees because in the long run, hilton and marriott are the two you want to own by virtue of the

fact they are the most defensive global business models in the travel and leisure space >> on the cruising side, shocking to see royal caribbean gets about 9% of its revenue from china that's triple the next highest company. why is rcl so exposed to china >> first of all, relative to their peers, they have been in china longest. they have the most fleet exposure i think a number closer to 7 or 6% by the way. but that's, that's still relative to norwegian for example, which has zero exposure still more risky, which is why by the way, the stock has pulled back quite a bit more in the last week than norwegian has but by the same token, if this is a near term phenomenon, then the company with the most exposure want once the all clear has been sounded that will

probably rebound the most given its greater exposure to china. >> by the way, that 8.5% number came from fact set so you're sayinging it's a little less than that. either way, watch rcl. harry curtis, thanks so much for join iing us >> thank you if smile direct did not fix your smile, the company wants you to keep your mouth shut or else how it's silencing unhappy customers. next you can also listeton us on the cnbc app we're back in two minutes. legendary terrain in telluride,

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since smile direct announced they would sell directly to orthodontist, the stock has spiked, but complaints have been filed against the company since it was founded in 2014 and now a "new york times" investigation reveals some customers have signed confidentiality agreements in change to get their money back if they were unhappy with the product peter, thank you very much for joining us >> absolutely. >> it looks like sort of heavy handed tactics by smile direct you've been covering business. is this an unusual practice by them >> i think that in the health

care space, when you have a product that doesn't work and you ask for your money back, you know, i think that you should be able to go out there and tell other people that you know what, this didn't work for me and even if you got your money back, i'm not sure how common this is in you know, in health care but what we wanted to focus on was the impact on the people who tried to get their money back. >> and what happened basically, it was we'll give you your money back if you sign this nondisclosure agreement and we're, they enforced it, according to your story. i think they've told people or companies to take down social media posts that might have been critical >> well in the case of individuals, the wording of the agreement says you have to delete past social media posts, which you know is prettity stringent. it also a says you can't tell a single person. no carve out to say a family

member it's a tough agreement >> yeah and the company, it did say, we mentioned 1670 better business bureau complaints the company said most had to do with delivery issue, correct so it's not a fz we don't like the product or they were heavy handed >> yeah. and that's a good thing to point out. but i would also add that since the story was published, people have gotten in touch with us and what we're learning is this long wait for say a new set of aligners or a long wait to have an issue addressed is something that people really are frustrated about and it's not clear why there should be such a long wait and so i think that yes, it sounds like it's less serious than say the aligners really didn't work but at the same time, it's been a source of great frustration for the customers we've spoken to >> peter, "new york times," you

can read that story online or in the paper. peterer, thank you very much and by the way, it's important to mention that of course cnbc did reach out to smile direct club for comment on "the new york times" story. so r pha, the company has not yet responded. by the way, the stock is higher today. remember earlier this hour, wilfred came out with breaking new about john stump and charges reelated to their fake accounts scandal. current ceo charlie sharp now out with a statement denouncing the behavior and the company is looking at what further action, if any, it should take against those individuals who buy the way were former senior executives and a former ceo of the company. but he also add ed in the meantime, quote, wells fargo will not make any remaining compensation payments that may be owed tho these individuals while we review the filings. i assume he is discussing those former wells fargo executives who had agreed to pay these fines related to that fake

accounts scandal obviously the story is still developing and wilfred and others hf mowill have more on it "power lunch" begins right now thank you very much here's what's new at 2:00 on "power lunch" for a thursday. more than 20 million people now locked down in china as the coronavirus continues to spread across the globe the world health organization saying there will be more cases to come. we've got those details. and those fears weighing on stocks as well although we are off the lows of the day. some weak earnings taking a toll and a new warning from the ceo of goldman sachs we've got the details on that. plus, airlines in turbulent times this week as they deal with more delays from boeing trying to get the 737 max back in the air we'll hear from two major airline's ceos as "power lunch" starts