now presenting until the fed changes policy, they'll force people into equities >> lee, we appreciate your time as always. that's lee cooperman joining us from florida the dow is down 200. it is off the lows of the day. "the exchange" picks up that story right now. thank you, scott hi, everybody, and welcome to "the exchange. i'm kelly evans, and here's what's coming up the fallout for apple. the coronavirus dealing a blow to the world's biggest company plus a plan to rein in wall street from the man who made billions from it a look at what mike bloomberg is proposing now and what it means for your money and how walmart's ceo called the stock. millenials are giving the fed a headache and struggling to become more tesla-like we have bob pisani at the new york stock exchange. bob? >> good afternoon, kelly the dow and s&p well off their

lows 281 was the low for the dow jones industrial average, about six points were due to apple and it's warning on coronavirus. apple suppliers, particularly semi conductor names, taiwan semi conductor, for example, all weaker on that news. but there's a lot of money sloshing around. look at smh, the big international semi conductor etf. there's a lot of movement here today, a lot of big volume we're seeing that in some of the other international etfs dow laggards, goldman is down, exxon that's a new 52-week low and most of the big global industrials, united technology, caterpillar, 3m also to the downside back to you. >> thanks very much. bob pisani. the deadly coronavirus is being felt across all corners of the business world royal caribbean, boston scientific and qualcomm have warned of a hit to their bottom line consumer giants say their sales will take a hit with under armour estimating a $50 million

impact mgm resorts pulled its forecast for 2020 citing uncertainty around the outbreak. and now as bob just mentioned, even the world's most valuable publicly traded company isn't immune apple doesn't expect to meet its second quarter forecast due to production delays and weak demand as a result of the coronavirus. for more on that, i'm joined by the chief technology correspondent for axios and steve coback steve, i'll begin with you it's actually the second time in just over a year -- >> 13 months. >> -- has changed its guidance because of china last time around the stock was down 10% in a day, shrugged it off and it's more than doubled since then do you think investors might be looking past this one a little bit? shares are down but not that much. >> it's 2%, at one point it was 3% at its worst. i think the big problem here is apple has not been able to gauge how deadly, how bad this virus is affecting things. they thought they would be at

full production mode right now, they're clearly not. they did a great job navigating the trade war, playing that political game we saw between tim cook and donald trump. this is harder to predict. the reason why the stock is only down 2% or 3%, it's still viewed as temporary and that's where the optimism comes in. stores are opening, ramping up, doing health and safety checks what's really interesting is it's as good as logistics as apple is, as good at the supply chain as apple is, they weren't able to prepare for this. >> and they gave that wider than normal guidance only about three weeks ago. as jon fortt pointed out, they could have not given guidance altogether what do you think has changed? why did they have enough confidence to issue it and then today have to say we're pulling it entirely? >> i think it deals with the unpredictable nature of this virus. i'll be honest, i think this is based on an assumption that this gets better relatively quickly i think this guidance that apple

gave withdrawing their guidance is really saying, hey, things are a little bit worse than we thought a few weeks ago. production isn't getting back to speed quite as much. but remember, apple has dual exposure here. so most companies rely on china for production so this is an area where apple is not unique. where they are unique is the fact they actually sell a lot of products in china, which is not the case for many u.s. tech giants, and that's also weaker folks in china aren't going out, they aren't spending, stores have been closed so apple is taking a double hit. but i think this is still a very short-term reaction in the market that you and steve were talking about. the market is only down a little, assuming this is short term and gets resolved quickly if it doesn't, i think it will be a much deeper hit not just to apple but most of the tech sector. >> there is some speculation it could affect the timing of their next hand set launch in september. >> i think just before we came

on air nikkei said these production reports could bleed into april the new phone is supposed to come out in march. bloomberg is reporting maybe it will still happen in march as planned but it could put an effect on the launch maybe they have a muted launch, not a big flashy event so it could affect those things too. ina made a good point, they're hit from two sides last year apple misread the demand in china. now we're seeing the demand and manufacturing as spepect of it l because of the virus. >> so are you surprised the stock rebounded so quickly after the problem last year? it's amazing to me that a stock as big as apple could more than double in that period of time after basically saying they misread the landscape. who else do you think might be affected by the coronavirus outbreak >> sure. to your first point i think the reason the stock did so well is apple did really shrug off oar they had some problems in china. as steve mentioned, it was purely demand based. they did pretty well in the rest

of the world and even china started to do better than it had been so that was purely the business rebounding. this is obviously much trickier because it's not just about demand, it's about a health crisis that to be honest none of us can really say what's going to happen. in terms of who else is affected, it's a wide swath of thetechnology. this is chips, it's monitor, it's laptop components, it's tvs, it's really the fact of how much of the world's tech goods get produced in china. i think the impact is likely to be pretty broad. i think it matters how quickly the epidemic comes under control. the other aspect that is smaller but worth keeping an eye on is how much does travel shut down and we've seen this -- the mobile congress already cancelled, facebook cancelled an event. if people stop traveling, that's not a huge imminent business

threat, but stuff does slow down right now you're cancelling a trip or two to china to plan your next manufacturing. that eventually does result in either more problems because you can't do it as well, you can't oversee things as well or a slowdown so i think there's a lot of subtle and direct impacts that we're likely to see. >> well said guys, we appreciate it thanks to you both for more on the coronavirus, tune in tonight to cnbc's special report, "outbreak coronavirus, that's live as always as 7:00 eastern time. the dow is down 192 and appear 'le is one of the factors there is still optimism despite coronavirus concerns the dow is lower but only about half a percent off its all-time high are investors betting that whatever is lost will return or the fed will be the knight in shining armor? let me bring in the chief investment strategist at

mariner. barry, there's this idea that no matter how bad things get, there's always fed stimulus to the rescue when you look at the bond market, the fact that we're back in an inversion on the 3-month and 10-year, is that telling you they expect more central bank action or how would you read that here? >> no, not necessarily i think that the bond market rallying back to the lows in yield has to do with the likely effects of this on the rest of the world which are, quite frankly, greater than they are in the case of u.s. >> of coronavirus? >> correct think about germany's struggles to deal with the deglobalization trend. a consider what's driving -- what's been driving growth in the u.s. since 2014. it's reasonably strong consumer spending, but it's an investment

boom in software and research and development. that software boom is not dependent upon supply chains in china. if you even consider this within the context of 2011 when the great east japan earthquake and tsunami shut down the global auto industry for four months, that was the very early stages recovery auto sales were integral to that recovery, durable sales were quite strong that was a big deal for global growth at the time right now for the u.s., slowing down apple's production and, you know, bogging down new phone sales or air pod sales, that sort of thing is hardly cataclysmic relative to what that auto shutdownme meant in 2011 but it's a big deal for germany being able to sell capital goods into china or japan, south korea, all those other countries that are so depending dependent on that supply chain

>> so how would you invest in this kind of environment >> well, we continue to believe that the u.s. equity markets will see positive returns this year as you know, we were outrageously bullish in 2019 when most of the world was pessimistic. we're less outrageously bullish, but do expect mid to high single digit returns. so our message is don't abandon equities, be balanced. a lot of folks are saying let's be heroic in the extreme it's all about cyclicals abandi abandon the faangs we say you want offense, you want some defense, you want some growth, you want some value. we still like the faangs we're trimming them a little bit and buying them some less on the radar growth names but also like cyclical exposure domestically to companies that are positioned very well in trucking and other

areas for growth so we think balance is the key in this environment where the wall of worry is fairly large. >> so, barry, if you're saying, and there's a bank of america survey that showed this. when asked what the biggest risk was coronavirus is third what's happening in thebonding market, some imbalances there and the presidential elections. do you think there are unhealthy imbalances and are you worried about what the election this fall could bring >> so my perspective on this was i thought there would be three tailwinds that would persist until around april or may. i still think those tailwinds are very much in place one is not qe4 and the treasury bill purchases in particular, which is a qe-like program has loosened financial conditions considerably. that should start to get wound down around april or may if you think the other two

factors were recovery in global trade that may be delayed a little bit as a consequence of this, but still likely to be intact if nothing else, we are getting a recovery in business confidence and capital spending plans in the u.s and the third is just the state of the u.s. consumer back to the original point, rounding about april, may, in fact rob kaplan put out an essay about this today, they're likely to be winding down those bill purchases, slowing them to the rate of demand for currency and the like i would expect at that point we'll have our ninth policy normalization-related correction of the business cycle. every cycle since world war ii has had one. this cycle we've had eight so far. the ninth comes in right around then that's also at the point where you hit the real apex of the political cycle. let's say bloomberg were to be the candidate. i'm not making that call today, but even if he were, you saw today he's advocating a financial transaction tax which cooperman speculated is likely a

function of trying to not pander to the base but appeal to the base i'll try to be a little less pejorative than lee might be but the point is you will be in the midst of that political cycle at the same point so if the feds withdrawing liquidity were getting worried about whether it's a progressive candidate or a moderate candidate trying to appeal to the progressive part of the base, yes, that time frame is when i would expect things to get difficult. >> we'll bring you back before then and see if they can maybe give better indications. we really appreciate it today. here's what else is ahead on "the exchange. >> coming up, the blue collar labor shortage in the u.s. is growing and companies are finally looking to close the gap. what they're doing and how it could change the labor picture in america. plus, another presidential candidate is calling for tighter regulations on the financial industry this time mike bloomberg

what he's proposing and what it could cost and why millenials are making the fed's job difficult this is "the exchange" on cnbc how often does that... got it. servicenow -the smarter way to workflow. through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business. from finding out what's selling best... to managing your fleet...

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[ fast-paced drumming ] welcome back the blue collar boom is great for workers, but a headache for corporate america. severe labor shortages for blue collar work are threatening

corporate profits and even the standard of living in the u.s., according to a new report from the conference board joining me with more is president and ceo of the conference board and a cnbc contributor. steve, can't we just have good news for once? blue collar is good news tell us what problems you see happening because of it. >> well, you know, there's good news in this but it's for certain people and not for others, right? we all know that the labor market has been tightening, we're at historic lows in unemployment but this new report shows just how desperate it is on the blue collar side. the majority of baby boomers -- the majority of blue collar workers are baby boomers and we know that they're retiring in droves millenials are not going into blue collar work they're going to college, getting educated and staying out longer this is critical at the same time you see the demand just driving like never before there's not as much labor productivity on the manufacturing side and

e-commerce not only has been great for coders but it's been huge for truck drivers and the supply chain people who are just being sucked into this huge shortages here. so big, big demand, drop, demand increase, supply drop and what do you have? well, the people who are winning -- >> higher prices. >> that's right. so the people who are winning are the workers. the workers are being paid more, companies are getting squeezed but the flip side of this is the winners are -- minorities are at the highest level of employment, lowest level of unemployment and you see the poverty rates dropping like crazy, especially in the majority and women areas. that's great news. >> absolutely. but you're using this to call attention to the fact that if we can't get more people into this part of the labor market, it's going to mean it affects economic activity, raises the price for everything we're doing, including ordering stuff on amazon. you mentioned women a moment ago. there's an interesting twist

which is there are more women coming into this blue collar work how else are these shortages bringing people in >> right this is a problem. companies have to bring more people in. women is one pool that they're tapping into, but you're also seeing them go to other places like previously incarcerated people, military veterans are under huge demand here in order to try to bring people in. but there's one place, kelly, where companies need to do a better job and that's with older workers. they're already trained, they're already in the positions, and so they have got to think about ways to modify how they interact with these people. give them more time off, go to more part-time and job sharing and those kind of things for older workers to keep them in place longer, because that's the biggest pool that we have that we're not really focused on. >> i see a lot out there in the land of commentary about how baby boomers need to get -- i think even president obama made a reference to this,that they're the ones running everything and it's time for

them to step aside and let the millenials step up but you're saying in blue collar work it's just the opposite, they need to find a way to keep older workers around longer? >> it's just the opposite. so this whole notion of get the baby boomers out of the way, not in the blue collar we need them there, particularly in the labor trades where it's a physical job it's harder for baby boomers or older workers so you've got to make modifications for that. but if you look at truck drivers, most truck drivers are 55 and older you've got to deal with that demand of that job i think this is where companies are starting to focus, because there's only so much in the other pool the other place you can go is immigration, h1b visas and all the things businesses have been talking about for a long time but that requires real policy change these are people that are already in the workforce that they can address through hr issues. >> fascinating steve, this is all the stuff that makes the economy run thank you, sir, gts it's good te

you. coming up, the fourth quarter wasn't our best. that's what walmart ceo said about disappointing earnings and holiday sales. why investors seem to be brushing off the worst of the news. plus, why the nba stands to lose hundreds of millions of dollars. it has to do with china, but not the coronavirus. we will explain, ahead. and a reminder, you can always watch or listen to us live on the go on the cnbc app "the exchange" is back in two. we see access to fresh food being the global norm, not the exception. at emerson, when issues become inspiration, creating a better world isn't just a result, it's a responsibility. emerson. consider it solved.

welcome back to "the exchange." here are some of the movers at this hour. shares of virgin galactic are up 19% today and up more than 214% so far this year morgan stanley is cautioning investors today saying shares could use a breather boy, could they, but they're not taking it now. shares of kroger are up on the news that berkshire hathaway took a $19 million stake in the company. kroger shares up a little more than 5%. and shares of macy's are falling. the retailer declining after s&p cut its debt rating to junk just a short while ago. macy's competitive position is less favorable shares are down 3.5% to just over 16. now to brian sullivan for a cnbc news update. >> here's what's happening at this hour. president trump tweeting that roger stone's conviction for witness tampering and lying to congress should be thrown out. a series of tweets come just

before a court session in the case the judge has refused to delay stone's sentencing which is set for thursday the man who led the hospital at the epicenter of the coronavirus outbreak has died. he was the most senior health care worker known to have died as a result of the epidemic. he was 51 years old. iraqi riot police using tear gas to disperse anti-government protesters in central baghdad today. gunshots were also heard during the daily demonstrations at least 500 demonstrators have died since the demonstrations began. taylor swift's dad is safe after getting into a fight with a burglar. the burglar allegedly broke into his $4 million penthouse the burglar was picked up and is being held on a $50,000 bond that is your cnbc news update at this hour. back to you, kelly. >> brian, you wonder if he knew he was messing with taylor swift's dad. that would seem like a pretty

dumb pick. >> and if he did, you'd think he might just shake it off. >> we'll see you in a couple we'll see you in rapid fire, in fact. here's what else is coming up on "the exchange. ahead, another candidate calls for tighter industry regulations, this time mike bloomberg. the street doesn't seem skern concerned about walmart's big miss why? >> zuckerberg versus george erros, and why rival automaks are struggling to become more tesla-like that's all coming up on "the exchange." at emerson, when issues become inspiration, creating a better world isn't just a result, it's a responsibility. emerson. consider it solved.

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welcome back let's catch you up on a couple of stories that should be on your radar today it is time for rapid fire. here is brian sullivan, seema mody and robert frank. welcome, everybody first up, walmart a big story today. a tough fourth quarter the company saw its biggest earnings miss since 2015 remember, this is the holiday period its slowest e-commerce growth sales in two years and investors are slugging it off this afternoon. courtney reagan is fresh off the investor day at the nyse and her interview with the ceo court, what has changed the mood here >> you know what i think it is when you first look at the

numbers fourth quarter, they weren't great. but when you dig into the results and listen to the executives, you realize the long-term walmart story is still intact they're investing in digital and trying to get those stores more productive they're making efficiencies out of a lot of things that may look inefficient because that's what walmart does best. they're just a very, very good operator and that digital growth still strong, up 35% for the quarter. they said, look, when you look at the entire year next year, we actually are looking for $50 billion in global net sales for e-commerce that's a number they haven't shared before and that makes the business look not so small after all. but it was interesting, kelly, when you dig into some of those details about what happened with the quarter, grocery continues to be strong and that's good because it's more than half of walmart's sales. but they sell other stuff too, that general merchandise take a listen to what the ceo told us about that >> we just had some issues in toys, media, gaming and apparel. we had strengths in electronics and some of the other hard lines

categories so both in stores and online, gm is important and we want it to grow even faster we have to have store growth and online growth, food and consumer growth and general merchandise growth to make the mix work. >> doug mcmillon did that interview literary during a break yesterday and went right back on stage and was joined by executives like mark laurie who leads the digital team and they talked about their innovations yes, there may be some things that don't work out but that's okay as long as they learn lessons like with jet black, he said, yeah, we shuttered it but learned a lot about conversational commerce. so check, that was a win. >> just keep talking, keep telling the positive story, the stock will come around. >> i think that's what helped turn it around, that interview with courtney. but he's hhonest, he's humble an you've just got a sense they got their arms around this thing they had some weird one-off

inventory issues in december but broadly speaking they're still on the right track. >> courtney asked a question on international, whether at some point they will exit, walmart will exit some of those foreign markets. courtney, it seemed like he said we're going to wait this out, especially in a country like india. we're hoping that it will turn around at some point. >> absolutely. but then also, seema, right after that he left open the possibility that, hey, maybe we will exit some of those markets if it doesn't make sense and we'll do that at the right time. they have seen weakness in the uk and in canada as of recently, but he said, yes, but over the long term canada has been strong for us look at what's going on in chile with the political unrest. a lot of walmart stores were damaged and destroyed in some cases, so pretty hard to do business in a country like that when all of that is going on but that may just be a moment in time. >> great interview, court, and a really interesting story we appreciate it let's talk a little jeff bezos. he's pledging $10 billion to combat climate change, announced it in an instagram post saying

the money will go to a new fund called the bezos earth fund to back projects to help preserve and protect the world. now, hypocritical? >> why would yousay that >> amazon has 44.44 metric tons -- some employees came amazon has retaliated against them for speaking up on climate issues. >> how many boxes are made every year how much bubble wrap do you think what bubble wrap is made out of? oil. petroleum, chemicals listen, that's the field i cover so in no way am i knocking it. but let's be clear, whatever you do, you need to trace the end-to-end impact on the environment. don't just think i drive an lk car, therefore, i'm green. if you use a phone, you're probably not green because of all the data centers that have to burn the gas to power this little puppy so i think it's good to invest money, but you also have to examine the overall impact i would love to know what the impact on climate change is for

things like food delivery. all those cars just running. they don't even turn them off. >> a story just this morning was talking about how they're trying to move towards delivering your food in reusable packages so they don't generate -- >> but they're delivering the food, which means they're in a car unless they deliver by skateboard. >> we should applaud anyone giving $10 billion how do you spending that >> that's the main question. >> he didn't announce he was creating a foundation. he didn't say whether it's a donor advise fund or his existing foundation. number two, this is going to sound strange, spending $10 billion is very tough when you look at the ngo space that he's working in so it's one thing if you're building a rocket, right you can spending a billion dollars a year and understand where that goes. >> but look at softbank. they had $100 billion to spend in startups and people said it made the startups worse, not better. >> so that's the key, invest

like that and spend $10 billion quickly. >> so we're going to remake the 1985 classic "brewster's millions" with bezos billions. >> there aren't that many climate scientists that can spending that much even if you do a billion a year for ten years, which is -- >> it's a huge number. >> it's going to be hard to spend that money. >> you know who has a lot of scientists, the bill and melinda gates foundation on climate change so does the location of seattle, jeff bezos, does that allow him to link up we have no idea what this climate change fund will entail. >> come on, robert, think positively seattle is the bastion of a new -- >> ego, solve global warming with jeff bezos and bill gates, i'll take ego first. let's talk about some zu zuckerberg first the facebook ceo penned an op-ed

calling for more regulation of big tech in elections, harmful content, privacy and data portability. one reader sent a letter, george soros. he said zuckerberg should stop arguing for regulationis and calls for him and sheryl sandberg to be removed from their posts. where do we begin with this one? >> it's worth noting that soros has been a long-time critic of facebook the last four years, ever since president trump was elected, he said it played a prominent role in helping trump get elected i guess the question is whether this call for zuckerberg and sandberg to step down will gain momentum even if it does, does it matter? zuckerberg has a lot of power in terms of voting rights and shares so we'll see where it goes. >> brian, you look like you're ready to say something. >> when does he not? >> i see the thought forming and i want to hear it. >> the expressive face >> i just -- we have an election

coming up apparently in a few months, i'm told i'm told trying to avoid it but you wonder whatever happens -- if the current president stays in office, if he wins again, do the calls against facebook grow or do they go away >> but who's spending the most money right now? >> well, mike bloomberg has already spent over $30 million and a million dollars a day bloomberg is spending on facebook ads so it will be interesting to see -- >> because you can microtarget on facebook. >> you can put in zip codes and say i want to reach people who live in northern new jersey who drive a car valued -- you can literally do that. you can microtarget in a way where you can't -- otherwise you're just throwing things out there and hoping it sticks facebook is very good at that. >> facebook is great at that soros' beef says the platform allowed misinformation to throw the results of the election, which is -- i guess the question

is has enough changed on facebook in 2020 that a similar outcome could be avoided, if you even believe that's what happened in the first place. >> but he says if they just got rid of political ads to his credit, it wouldn't really affect their finances it is a tiny percent of their revenue. i don't really understand why they haven't from a business versus pr point of view, it makes no sense. >> he's trying to make a stand for free speech. >> you want a hot take here you go. how about banning all political advertising from social media for three months before the election. >> as a trial balloon? >> or have every ad be vetted. i'm not advocating for this, america. >> the kourncounter argument ise so michael bloomberg can buy the election. >> he's buying the election because of tv ads? so buying the election is not saying i'm going to pay off all debt that's not offering free money. >> that's another form so should you allow for political ads to let somebody

else's view point on social media or whatever get out there? again, some of these huge money backers who otherwise -- >> i'm sure martin van buren did the same thing onparchment. >> if you ban all the ads, that will give birth to another social media platform like tiktok the effect of that will be the rise of tiktok >> come after @seema mody. finally and quickly, one more reason to be mad at millenials because they love the idea of retiring early so much, it could be a problem for the fed if millenials, guys, consume less, save more and leave the workforce early, it could mean a big hit to the fed's inflation fighting firepower and spell economic trouble down the road let's hear your hot take on this one, brian. >> another reason to dislike millenials even more they're going to pay for my retirement there's 85 to 88 million of

them >> they're going to retire early. >> everyone says that. you know what the demographic boom that's coming in this country? it's going to be incredible. people my age in their late 40s, our little tiny generation, generation x, we're just a wee little one even though we invented we use today, i love millenials i want to thank all 85 million of you for funding my early retirement i'm going to name my boat the millenial. >> but there's social security you will get the millenials won't get. >> yeah, thank you, seema. take that. >> it was weird to me to think in my let's say late 20s and early 30s of dreaming of retirement at that point and yet on make it which is a cnbc website, there's a how i retired at the age of 30 where does that come from? >> i think it's ultra frugality from the financial crisis that is manifesting in a different way. >> and the search for happiness and the bad memories their parents went through through the

financial crisis. >> and three pirates on a scratch-off ticket. >> that does it for rapid fire today. speaking of michael bloomberg, his proposals for regulating the financial industry show the former new york mayor is leaning left in line with the likes of sanders and warren what it could mean for investors, next. walkabout wedne! get a sirloin or chicken on the barbie, fries, and a draft beer or coca-cola - all for just $10.99. hurry in! wednesdays are for outback. outback steakhouse. aussie rules.

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mike bloomberg unveiling a plan to rein in wall street on the same day the former new york mayor qualifies for the presidential debate in nevada. bloomberg's proposals include toughening the volcker rule and a financial transaction tax. why go after wall street here's what leon cooperman has to say. >> i don't think the democrat party wants bernie sanders or elizabeth warren to head their ticket if that's right and nobody breaks out in the primaries, i think you go to a brokered convention i think mike bloomberg has a good shot in a brokered convention he's trying to court the party >> can he court the party and

beat trump let me bring in libby cantrell, head of public policy at pimco and brian schwartz libby, is bloomberg's strategy here with this plan today of tacking to the left going to work for a guy who voted for george w. bush as president and used to be a republican and, by the way, made his billions from wall street? >> yeah, kelly, it's a great question in some ways given how far left the democratic party has gone, he almost had to do this, right? he's very much in lock-step with the democratic party on many other issues and this is one of the more remaining issues that he hadn't put out a plan his plan does resemble, again, kind of where the other democratic candidates are. that's one but two, and this is really important what we're talking to our clients about, the reality is quite different from the rhetoric, particularly because many of these proposals would need to be subject to congress

a.m. congressional approval the congress is much more moderate and very far away from many of these plans. you take the financial transaction tax, for instance, there is a similar bill in both the house and the senate, but the house bill, for example, only has 27 co-sponsors of the 235 house democrats. so it just shows you that the democratic caucus on the hill is quite far away from here while he may have had to do this politically from kind of a policy perspective, we're actually quite far away from ever seeing these things implemented. >> brian, that said, how close are we to seeing bloomberg becoming the democratic nominee here >> we were on a briefing with his team just before we got on air today. they're saying that bernie sanders really is their biggest threat right now they don't see joe biden going anywhere we do have nevada, we have south carolina and i know those are kind of safety nets for joe biden. but the bloomberg campaign and mike bloomberg himself are keeping a very close eye on bernie sanders it's interesting that they had this briefing, they told us this

on the same day they released this plan, the financial tax and all these other things, they're supposed to rein in wall street a la bernie sanders and elizabeth warren clearly mike bloomberg is trying to rein in some of these progressive voters he does very well with moderate voters, no doubt about that. what he's trying to do clearly is connect with the more progressive types. >> libby, i wonder if he can do that successfully without seeming like a hypocrite or alienating people he would need in order to win the general election >> kelly, i think that conventional wisdom around politics these days i'm not sure holds so much. here you have a republican, an independent mayor running for the democratic nomination. so maybe a decade ago you could have said that credibly, but i think these days the sort of conventional playbook of politics don't necessarily apply. so we'll see i think, again, what we're telling our clients, though, is even though the media is very focused on this being a

two-horse race with bernie sanders and mike bloomberg, we're very much in early days here, right? so let's see what happens on march 3rd in particular when 34% of the delegates are allocated that will be a very important test for both bloomberg and sanders. but let's see. how about pete buttigieg or even vice president biden so i think it's too early to say this is just a two-person race i also think back to leon cooperman's comments at the beginning that a brokered convention here does seem much more likely than it has at any point in modern history. and so that from a market perspective could cause quite a bit of uncertainty, but again seems more like an eventuality than it has in previous cycles >> a shoutout to washington & lee which over the weekend predicted a brokered convention in which they saw sanders prevailing if we go that path, we'll see. first we have to get through the debate tomorrow night. it will be interesting to see bloomberg on that. also watching shares of tesla which are climbing as

investors bet it's the car of the future and that elon musk is the man to take the whole 'llostry there wel ok at how quickly the competition could catch up, next

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welcome back shares of tesla are back in focus today with the stock hitting 860 bucks a share in session high more than doubling since the beginning of the year. analysts at morgan stanley have boosted to hit 1$1200 a share an investors are shrugging off a work off the german factory. tim, first of all, i wonder if there's a little bit of sour grapes in germany. traditionally, the biggest auto making company in the world saying look, tesla's maybe the carmaker of the future and trying to make life difficult for them >> yeah, the german automakers are definitely pay iing attenti now which is something a decade ago was hard to fathom that an electric car company could be a real thing. >> so how much of a setback, station and what they say our virmal issues, but what's at stake here >> well the enthusiasm in the stock is in large part because

of u belief of massive growth in the future and what elon musk is trying to do is open the factory in germany in a record pace and this notion that he could do that is kind of stomaumble bing here because germany's much more complicated to open a new factory than china where he's able to get that factory open in less than a year's time i. underscores that his strategy is complex and investors are betting on something that's going to be very hard. >> tesla having any longer term issues related to coronavirus related to its supply chain or demand in china? >> that's another part of this issue for international growth he's begun production of the motd el three in china but u we've seen issues because of that effort to shutdown. we've seen auto sales in general really hindered by these efforts. it's an issue for tesla and all of the companies >> and finally, i don't know

what you think u of this kind of back and forth between bill gates and elon musk where gates said i drive an electric porsche, not a tesla then musk tweets i'm not that impress ed with you any way. you've written b about where others are in the race to catch up with tesla. is porsche a real threat >> porsche is seen as a potential threat especially against the model s, the large sedan that sold for about $100,000 that competition from the german luxury makers. we've had audi out with an suv the others are coming. that's kind of where the big money is being placed by these incumbent automakers tesla meanwhile is moving down stream trying to take a share and really being successful in places like bmw 3 series and later this year, they'll have the model i. >> and german offers in particular

tim, appreciate it thank you. >> thank you >> with "the wall street journal. well the nba is still off the air in china and that's costing the league and its players millions of todollars. we'll have those details, next you've faced the hassle of lugging your gear through the airport. with ship skis, you're just a few clicks away from having your skis, snowboard and luggage shipped from your doorstep to your destination. with unrivaled pricing, real time tracking ship skis delivers, hassle free. ship ahead and go catch those first tracks on fresh snow. ship skis. your skis. delivered. gimme two minutes. eligible for medicare. and i'll tell you some important things to know about medicare. first, it doesn't pay for everything. say this pizza... [mmm pizza...] is your part b medical expenses. this much - about 80 percent... medicare will pay for. what's left... this slice here... well...

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welcome back in october, the general manager of the houston rockets tweeted comments supporting democratic protestors in hong kong. it led to a loss of sponsors and total blackout of some nba dates in china now the commissioner is is saying that the league could lose up to $400 million in revenue from that. let's bring in jabari young. this is the first time silver put a dollar figure to that. where does it fall in terms of what people expected >> nba china is about, when you add a $400 million loss, it's substantial. they're still make iing money. the streaming company is still their streaming games after originally blackballing the nba after the comments the effect is that the games still haven't gotten back on cctv, which is the china you know, the state operated television on station. so when it gets back on there, you'll start to see revenues get back to where they were because

remember with those games not on the state tv, now businesses say we have no reason to be in business with nba. we can't promote anything. can't see anything so i think now what they're trying to flep make it to smooth over as one told me months ago, this is where money comes in with geo politics and you've got to get that in order. so the nba knows what they could lose and now they're bracing for it >> silver had good comments on that said it's substantial. i don't want to run from that, but we accept the consequences of our system and values it's not a position any system wants to be in and it will have an impact on what every player is making. even if they're able to come back, it sounds like the salary cap could come down a little bit. >> and the league is holing out hope so maybe it off sets and you don't lose anything, but right now, they're bracing for maybe a million, a $2 million hit to the salary cap and because

percentages are tied to a salary cap, this determines what every team can spend if you don't have a lot to spend, then players lose out because they're affected by that, where it's not going to hurt the players that will have a presence in china, people like lebron james, those guys i think the stars china's not mad at them >> i don't see it. you look at aaron, got so much attention, don't go oh over the weekend. didn't even win. and he had just signed a contract with 361, a chinese shoe company >> we're not going to hold you as the player accountable for that because the chinese still make a lot of money promotional wise when it comes to having these overseas in the summertime kobe bryant set the trend on ha that

lebron james when the shoe companies say listen, dwoent have anything to do with the nba. southeast lined to nike, to adidas a but again, the league is going to feel an impact. >> thanks so much. jabari young and that does it for the exchange today thanks for joining me. i'll join tyler for "power lunch" starting now. >> here's what's new at 2:00 on "power lunch." stocks under pressure as apple says it will not meet expectations this quarter because of the coronavirus that warning jolting the markets today. plus u, it is not just apple that could be about to take a hit. a top analyst will tell us which other tech stocks could be in trouble as virus fears spread and later, michael bloomberg surge iing in the polls as the primaries heat up and the former new york city mayor is taking on wall street head on in a a new set of proposals we'll dig in on than as "power lunch" begins right now.