find out if you policy qualifies. or call the number on your screen. coventry direct, redefining insurance. welcome, everybody, to "power lunch." morgan is in for kelly today the minutes of the last fed meeting are due out momentarily. what the fed says matters to the market, maybe even more this time than usual as investors

look for timing hints and any comments on inflation. >> ransomware protection is also in focus today demand for cyber insurance is skyrocketing payouts are up, so are rates is this creating opportunities and challenges for some of the country's biggest providers? and we will talk to the man behind the defense department's decision to call off that controversial $10 billion jedi cloud contract "power lunch" starts right now as we await the fed minutes, here is how the markets are in wait-and-see mode. as you can see right there it's basically a very narrow trading range. the s&p is up about 0.2% the dow is up just fractionally or about 44 points the nasdaq is ever so slightly lower, but really hovering around the flat line

the nasdaq did hit a record high the yield on the ten year falling to its lowest level since february as well a dramatic move. the yield on the 30 year is below 2% right now that ten year 1.32%. we just broke through 1.40 yesterday. >> rick santelli at the cme and ylan mui with the updates as she gets them. we begin with mike tracking the action in the interest rate sensitive names. mr. santoli? >> reporter: the last couple of days you've seen a move toward those sectors of the stock market that benefit a lot or coincide a lot with lower yields, perhaps lower growth, more accelerated expansion you look at things like the nasdaq 100 against the small caps, we've had this huge comeback in those large mega caps

that has maintained itself this week that's a week to date number today it's been less pronounced. so you wonder if people are alert in the short term they may be bottoming similarly banks versus technology it's a similar story banks reflective of the reflation trade giving back a lot, trading 11% below the highs. again, on an interday basis trying to stabilize here as we did hit the low in yields earlier and then obviously you see tech doing well but very much concentrated in things like apple and microsoft for the moment, morgan >> mike santoli, thank you to rick who has the fed minute headlines for us rick >> reporter: yes, we are monitoring the big story is how much and how many hints are we going to have regarding when the taper is coming, what part of the buying is going to get tapered, and all roads seem to lead to the mortgage-backed security side which is at least $40 billion

every month, of course treasuries are $80 billion combined, at least $120 billion. as you look at the charts, the intraday, two-year note deals unchanged at 0.22. ten-year hovering at 1.31, right to the low end although they've traded briefly under 1.30. you take a 30-year bond hovering right above its low yields right above 1.90, 1.91 area. the real key may be the dollar index. it's a huge counter intuitive move some of the headlines coming out regarding the taper. all talk seems to be about the taper and i'm sure ylan is combing through the headlines. looking at the dollar index coming down a bit may give us some clues that most likely we're not going to see as hawkish which was the implication even on a day, even on a day where interest rates have been all the rage to the down side. morgan, tyler, back to you >> rick, thank you very much let's bring in our panel for

analysis and reaction such as we have it at this point. lindsay is a chief economist and jack is the founding partner and ceo. reading through the fed release and we'll get updates as we know them lindsay this is the last formal communication we get from the fed before the jackson hole meeting. how specific do you expect them to get today with respect to either timing or whether as rick pointed out they're going to start by pulling back on their purchases of mortgages versus treasuries what do you expect >> looking for clarity on when and how to initiate that taper as far as the time line the chairman said we are rapidly approaching the time line to discuss taper. we've seen the minutes there was a lot of background chatter, a lot of ongoing conversation with a number of

participants pointing out it may be now appropriate to begin that discussion but it wasn't a widespread consensus. july may be too early. october/november too late. that puts us right in the august/september time line, which, as you mentioned, lines up with the jackson hole symposium. in terms of the how, again, we've heard from a number of fed officials talking about mortgage-backed securities as the primary target for lowering asset purchases, essentially applying a two-speed approach. in the minutes we see a lot of that discussion but hardly a consensus view suggesting that even after the discussion is announced late summer/early fall, it's likely that is continuing here. >> before i bring in jack, to you, ylan, you've been going over the data.

the recovery, the inflation risk and so forth sum it up for us >> reporter: the fed did have a discussion about what that taper would look like when it occurs the fed minutes show the participants do not believe that is substantial further progress had yet been made. however, a discussion about how to taper and whether mbs, whether there's mortgage-backed securities should be sold off first or perhaps more rapidly than treasuries because there were concerns in housing markets. however, other participants said that they should be reduced treasury and mbs purchases should be tapered at the same time that would be in line with previous fed actions and communication. there's a discussion around the process of tapering and what should go first, mbs or

treasu treasuries and judged the risk to inflation were tilted because of the supply chain across so many sectors, autos, semi semico semiconductors, et cetera, and a few participants did say economic conditions could be improved more quickly than expected back in the spring and that could move forward the expectations for fed funds liftoff. we saw that with seven fed officials seeing the lifting in 2023 instead of in 2024 and that seems to be reiterated around the idea the economy is recovering more rapidly than expected they did note it has been unprecedented and uneven >> let's bring rick santelli back in. you mentioned the mbs piece of this taper debate to start off the hour here.

maybe we are or are not getting substantial progress what are you seeing? >> reporter: it certainly seems as though the fed is trying to buy some time with regard to the taper. there's a bit of disagreement as to whether it should be focused, the taper, on mortgage-backed securities several members seem to be going in that direction. the big headline here is it's all about the taper but really we don't have any new information although there is discussion like on the street that the focus should be in mortgage-backed securities but there's disagreement whether that's correct or not. >> let me bring in jack abelin, if you don't mind. you say market participants are un -- they are acknowledging they underestimated the inflation risk and, by the way, just as a personal aside, i'm always sort of tickled/troubled by the idea

that we throw out from the measure of core inflation food, volatile food and gas prices i can't imagine what's more core to the american experience than eating and driving >> that's it, tyler. rick said it the fed wants to buy time. they don't want to act they certainly don't want to act too soon they recognize that the last ten years they've been trying to gyn up inflation with very little luck they've had a previous 40-year history of keeping a lid on inflation. so clearly they want to err on the side of too much stimulus, too much inflation, knowing they can circle back and tamp it down later. that said i think there are two pieces that we need to focus on that really are sticky, not just the food and energy side that you talk about but also labor costs which are starting to tick up now and housing prices. the fact is that the accounts

for a third of our cpi calculation and that's starting to filter through. rents typically don't go down. >> it's such a key point, lindsey, and it goes back to what we're talking about here around the talk of taper and specifically what that could look like and the mortgage backed security and housing has been so robust it's been on fire. we've seen that not only in terms of home prices but in rents as well. so are we getting or did you expect to get a little more meat on the bone around how the fed is thinking about substantial progress how does this set us up as we go into the july meeting and then the august meeting out at jackson hole >> well, it's interesting because the fed was pretty clear that the economy at this point, broadly speaking, still needs support. there was no rush as we're reading through this commentary to immediately roll back some of

these emergency measures now they are beginning that conversation, but, again, no sense of immediacy they want to be patient and cautious they are recognizing these pockets of strength, particularly the housing market. that's where we see this momentum for the discussion to target mbs purchases so they're really walking this fine line, again, acknowledging some of the vast improvement but saying, wait a minute, this isn't necessarily broad based and we need to keep our eye on the ball and keep our foot on the gas and maintain this very accommodative policy position at least for now. so they're buying themselves time, i think, over the next couple of months until we get to jackson hole or beyond when it's likely we hear the language of tapering to come in the coming months >> jack, final question, if i might. you favor large cap value over small cap growth in the emerging markets over the u.s. but the interesting point here that you make, total return is made up of three things in equities

it's the earnings growth of the company, it's the dividend the company pays, and it's the speculative premium investors are likely to pay for the stock. you say that speculative premium is going to compress and that you need to look at organic growth, that is earnings growth and dividend yield and growth in choosing stocks. and you say it's health care, financials and i forget what the other one was that have done the best on that over the past decade do you expect that to continue as we move forward >> yeah. i'm not sure i would characterize that last component as speculative i think it's valuation, expansion and contraction that really is directly related to interest rates the fact is that earnings yield, which is a function of the treasury rate, is just the reciprocal of the p/e ratio. if we don't expect interest rates to continue to decline, then we can't expect p/es to

expand and gets back to my original argument. we'll look at basic materials, industrials, health care, financials those are the areas that i would like to see in portfolios as we look for more organic growth >> all right thanks very much lindsey, jack, ylan mui, rick san santelli, mike, everybody, thank you. coming up, demand for cyber insurance is soaring a cyber insurance ceo will tell us which sectors are clamoring for coverage and we'll find out if his rates and payouts are rising and later, a one-time reddit favorite is caught the ceo of purple will tell us how he's connecting with customers and investors.

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skyrocket. contessa brewer has more contessa >> reporter: hi, morgan. cyber insurance plays a significant role in security because insurers know the risks, they know the damages, they know what controls are failing. the government accountability office says nearly half of all insurance clients bought cyber insurance last year compared to just 26% five years ago and these direct written premiums for stand alone cyber policies climb 29% to $1.62 billion according to s&p global market intelligence analysis. axa and aig are the industry leaders followed by beazley and travelers. chub for package cyber security insurance. cna financings trails behind but it was itself the target of an attack this spring the challenge is keeping up with incredible costs of cyber crime, a rough estimate of the likely cost to the global economy here

$445 billion annually. and the industry's loss ratio spiked in 2020 that's what they pay out versus what they collect in premiums, up more than 25% from the previous year. and brokers told the government prices for premiums rose as much as 30% at the end of last year, though my sources say some of these policies cost well more than 100% more aig's global head of cyber told me clients are increasingly coming to the table, prepared to add more controls, more defense is up. and if they don't, they're advised they will have lower coverage limits and will have to pay co-insurance and will have to participate in paying some of the damages there. listen, tyler, what i've learned these attacks have the risk of putting these companies out of business if they don't have enough cyber coverage, they can't afford to pay the ransom if they do, it would just make them fold. >> very, very interesting. we're going to continue the conversation, contessa, thank

you, right now with a cyber insurance provider the coalition company offers both insurance and cyber security systems development to help limit losses. they insure 50,000 against attacks. coverage can rise to as much as $15 million per company that would be the maximum amount that the company would cover. joshua motta is ceo and co-founder thank you for being with us. let's run through a couple of the numbers contessa just set up there with respect to your business how many new customers -- what is the rate of growth in customers that you've experienced this year over, say, last year? and what is the rate of growth in the typical premium obviously different companies would have different premiums so there is probably no such thing as an average premium, but i'm looking at what the rate of growth is. growth in customers and growth

of premiums paid >> yes, you're right rising demand for cyber insurance, like any form of insurance, is driven by losses, which are happening. business owners are seeing more wrecks on the side of the road and wondering, could that be us? quarter over quarter we've seen 69% growth in demand for new buyers in the market and, you're right. premiums are rising. i would say on average across the market we see 40% to 50% price increases. but it can be dramatically higher particularly for businesses that have had prior claims experience. >> what kinds of companies -- where are you seeing the attacks happen most if you were to segment the different kinds of companies? and i noted in some of my research one of the fastest growing areas for these attacks has been nonprofit organizations. >> that's right. over the past quarter we've seen a significant growth in attacks targeting not for profits as well as industrial businesses. and in this day and age there's

not a single sector of the economy that is immune from cyber attacks, from ransomware they're opportunistically targeting all industries if you've made one decision, you are potentially now in the cross hairs of a criminal actor. >> joshua, should companies pay the ransom >> oftentimes they do. it tends to be binary. if the company has an ability to back up their data or have any other alternative means of recovering, they will not. however, if they're left between a rock and the hard place of existential ruin, bankruptcy or otherwise, oftentimes it's the only alternative and they will >> we speak to so many companies who say they're increasing their spending to fortify their cyber defenses but i wonder above and beyond the money are there new protocols or exercises or types of defenses that are being put in place and that you encourage specifically to be able to cover

more robustly from an insurance standpoint >> organizations have to realize this isn't exclusively a technology problem it's a risk management problem it's a risk we're all going to have to live with for a very long time. and so certainly implementing mitigation measures, common controls and security practices are all great. they can substantially mitigate the risk however, they won't eliminate it and that's where cyber insurance is becoming a necessary outlet for businesses they have to transfer what they can't litigate >> let gonzales to what our friend jim cramer calls the lightning round. quick questions, quick answers do you get involved in the negotiations over ransomware with the company and the perpetrator of the threat? >> we do >> you do? number two, as important as what is covered under cyber insurance, is what is not covered. do you cover most claims, or, i have to say my experience is often they don't cover claims you put in >> that's not been my

experience we pay almost all claims there are very few things that are excluded >> how do you model risk in an industry where the number of claims is going up, the requests or the size of the ransom demands are going up, how do you know what your risk is >> we have to innately understand the footprint of our customers. we have to determine who are likely to be attacked and who aren't what will it cost? >> you're sort of flying by your experience and the seat of your pants. you play the lightning round very well,joshua thank you. >> thank you >> joshua motta. >> appreciate it coming up on "power lunch" the pentagon canceling its up to $10 billion jedi, between amazon and the u.s. government. we'll speak with the department of defense about that move and specifically what's now next tailor made or one size fits all? made to order or ready to go?

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welcome back i'm rahel solomon and here is your cnbc news update this hour.

the highly contagious delta variant is responsible for the majority of new covid infections in the u.s delta accounts for almost 52% of cases reported in recent weeks the travel industry thinks it's time to open the country to international visitors groups representing airlines and hotels want the biden administration to lift the covid entry travel restrictions. roger federer will not be winning his ninth wimbledon championship he lost today in straight sets his opponent had not previously made it past the third round in any major tournament federer turns 40 next month. take a look at this, this is not a real cat although it might be hard to tell. this is on the side of a building in japan. it's an l.e.d. video screen with a 3d image of a cat and 4k resolution drawing a lot of attention from people on the streets below.

a group of local businesses in a tokyo suburb say they wanted to create a mascot for the area to try to cheer people up and attract customers. people on social media are saying it's quite cute i think so, too. and it sleeps. >> whoa. >> that's so crazy >> that is shin juku >> we need mascots for the manhattan neighborhoods. the mascot for harlem would be different for one of the brooklyn neighborhoods >> we need good mascots. that's a good idea there you go >> i would find that distracting, i have to say >> disturbing. a little disturbing. >> we're going to get a quick market check here halfway through the hour major averages are all in the green after the release of the fed minutes. the dow is up 60 points. the s&p up 0.3 and the nasdaq also turning fractionally higher as well.

fresh record highs the small caps, though, are under pressure keep an eye on shares of apple meantime that company is up 2% right now. it is less than $1 from its all-time high. it would be its first high since january. so interesting, tyler, to see some of these -- or see apple specifically join the big tech rally that we've seen as of late >> it's been a laggard this year, apple. all year all right. within $2 of an all-time purple -- purple, the mattress/pillow company, sinking nearly 20% this year taking a hit due to production issues the stock, however, is loved by analysts and people who sleep including some in the reddit crowd. the ceo will join us next. and belting out a new investment betting big on the music industry launching a new label in an era when you have to question whether labels are

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welcome back the oil market is closing for the day. to pippa stevens at the cnbc commodities desk >> reporter: another volatile day with gains and losses. the meeting between opec and its allies continuing to weigh crude started the day higher but couldn't hold on to the gains closing here about 1.75% lower at $72.12. that is off the worst levels of the session. brent and crude dipping to $73.34 now this is the second day of wild swings. wti closed in the red yesterday after hitting its highest level since november of 2014 suggesting investors are unsure about what the breakdown in the opec talks means looking forward. there are fears if a consensus isn't reached countries could boost output still lootts to watch.

thank you. it is now from stay at home stock that's getting a lot of interest from the reddit crowd purple innovation. they make mattress, pillows and seat cushions. shares are down double digits following manufacturing and supply chain issues. wall street is a big fan analysts covering the company rate it a buy. the ceo of purple joins us now joe, welcome to the program. >> thank you for having me >> let's talk about the supply chain issues and some of the hiccups around manufacturing and hiring that you've been seeing how acute has it been and how transitory do you expect it to be >> yeah, it's fairly isolated right now. we are a manufacturer of our own unique technology, our own product, and we're the only ones who make our unique gel product. and as a young manufacturer most of our machinery that we built ourselves, all proprietary manufacturing, is at most the

machines are about four years old. we're in very early days and we sell every unit we make we've had incredible demand for our product and have been moving as quickly as possible to build capacity when you're running all machines 24/7 full time, when and if a production issues comes along, it will have impact on our business, and that's what we ran into the last couple months. we had an unfortunate incident which cascaded intosome manufacturing challenges which meant we, for about a ten-yankee period, made fewer mattresses, and that rolls right into sales. but we are get that go resolved and said we would be back in business in a couple years and back into growth >> why are you building up that capacity >> we have two manufacturing facilities right now one in our home state of utah and we've been expanding into a very large facility south of

atlanta, georgia >> i don't mean to pry, but you were a little elliptical in describing an unfortunate incident what happened and has your production recovered from it >> yeah, we -- unfortunately, we had the most catastrophic of tragedies, one of our own beloved employee was, unfortunately, had a fatal accident in the facility, which is unspeakable for any business to go through that at any time for any reason that in itself, from manufacture supply, we had ample safety stock so that by itself as we worked through the incident, we were cleared by osha to go back in business almost immediately we hold ourselves to a higher standard and took our plant dant for a week to do some retrofits which we completed and weeks of safety stock, that by itself, we did not anticipate any material issues from that

unfortunately, we have never taken our machinery down for that time before and we had weeks of cascading issues bringing things back up. >> thank you for your candid answer and our sympathies to your team and the family of the individual >> thank you >> you're back up basically and running. what makes your mattresses different? morgan and i were talking before i know the brand name, but you describe it as a gel product i'm curious. i'm in the market for one, and i'm interested in what makes your product different from, well, we'll call it brand x. you know who i'm talking about >> we have been at this for nearly 25 years now, originally in medical beds, and we still sell a decent number of cushions for wheelchair pads and for

licensing medical beds >> that's next for me, the wheelchair pad >> some day. what we've come up with is the next generation of sleep service that's a step beyond all the foams that have been out there the last three decades i'll show a little mini bed, a gel-based elastic polymer that's very stretchy. in the actual bed it's a grid, like a giant waffle and has these remarkable qualities that support you evenly, gets rid of the soft/firm debate, the most balanced support of anything in the market because of the nature of the grid, it's very high airflow a lot of mattresses today are throwing cooling fabrics and all these efforts to cool you down because foams get hot. we don't because we dissipate air and heat and it keeps a neutral surface which is what keeps you from waking up in the middle of the night hot. >> got it. >> it's instantly responsive, as you move around, the nature of

the elastic response is it's always adapting to you in real time >> morgan has a burning question >> yeah? >> morgan has a burning question we're talking about cool mattresses >> basically you're talking to consumers right now when you describe that technology, but i wonder how you're talking to investors, too, given the fact your stock has gotten the attention of the so-called reddit crowd as of late? >> yeah, and we got attention from them as far back as a year and a half ago it's always fun to watch that investment community but, look, we've got over 200 patents issued and pending on materials of our own invention these polymers we created ourselves on machinery, the injection molding of these machines, these massive machines -- we have eight of them now -- millions of dollars to make. we make them ourselves >> okay. >> to over 90% of our net

revenue is with materials of our own invention on machines we build ourselves. it's a heck of a moat. the fact that consumers respond positively to it, it's a differentiated product, over 30% of our consumers say they learned about purple from other purple customers despite us spending over $200 million in advertising and selling this year it is a very different product >> joe megibow, thanks for joining us today. >> thank you so much >> after months of legal battles, the department of defense calling off its jedi cloud contract we will speak with the chief information officer. plus didi shares lower again as china's crackdown continues.

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"after nearly two controversial years including a law sue, multiple protests and investigation, the department of defense pulling the plug on the up to $10 billion jedi cloud program. the dod saying the contract, quote, no longer meets its needs. now a new program is being rolled out the joint warfighter cloud capability, a multivendor, multiyear contract with us is the acting chief information officer of the department of defense, the man who is overseeing this, john sherman. thank you for being with us today. >> it's a pleasure thank you for having me. >> so in terms of the shift in plan here from jedi to now the jwcc, to shift from single source to multivendor, what is that going to enable the dod to do in terms of fielding this new cloud capability >> it's really about enabling our joint war fighting across our combat and commands in the rest of the department of the industry has evolved in cloud and so has the department.

we started jedi several years ago, the single cloud approach would have been right back then. we've moved beyond that. having more than one provider to provide multiple capabilities to our warfighters is critical for us to be able to succeed in our 21st century fight >> and you have explicitly called out amazon and microsoft as the two potential cloud providers that would meet the security criteria, the security clearances, the capabilities the dod needs currently. are there other names that you are going to be looking at or considering throughout this process? what will this look like as you begin to issue the request for proposals from private sector? >> so we put out a presolicitation notice and named amazon and microsoft as the two based on our market research our final solicitation, however, will not be until mid-october. between now and then, roughly three to three and a half months, we'll conduct additional market research to the other u.s. hyper scale cloud service

providers -- oracle, google and ibm. if our market research reveals they're able to meet our needs in the time frame we're after, roughly 9 to 12 months from now, we could have additional cloud service providers along with the likely awards to microsoft and amazon web services. >> i know there's the capabilities that will come along with this conversion to a bigger, more umbrella cloud that you are now fielding and rolling out and certainly we're talking about quite literally life or death technologies and capabilities, the ability to stay online as you do that cloud computing. that being said, cyber security specifically very much in focus right now given the hacks we're seeing, ransomware, et cetera. how will you keep this cloud or these clouds secure? >> through our rigorous accreditation process and close partnership with the cloud service providers themselves and how we're going to credit them at all three security levels --

unclassified, secret and top secret and you mentioned where we're going to need this, all the way from the headquarters level all the way out to what we call the tactical edge, the battlefield where our warfighters will be operating, out at that level to be able to accredit that and have constant censuring and working through the cyber security pieces. what you noted is very much on our mind our adversaries are coming after this space and we must have cyber secure cloud capabilities. >> given the fact we did just see the original program jedi scrapped, there were protests. we had that legal fight that was under way and i'm assuming has now gone to the wayside where amazon was concerned with the u.s. government as well, should single source ever have been on the table? how did you come to multivendor? was it because of this legal process we've gone through the last couple of years and how much time has been wasted? >> it was about the mission need i noted in my previous job as the intelligence ceo several years ago that i did think a

single cloud approach early on for the department of defense was the right move when this was first conceived of several years ago. but as i noted a minute ago, the technology shifted we haven't stood still had the war occurred with jedi when it was supposed to happen several years ago we would have been talking about a multicloud ecosystem already. we're at that point in mid-2021. we are where we thought we were going to be but not without the benefit of a single cloud to get up on our skis with this we're ready now because if we have roughly 13 fit for purpose clouds and we become more conversant on how to use this and moreover there's a mission need for multicloud, and we're ready to move to that, and it is the right thing to do. >> i realize you're still formulating this but, quickly, how large do you expect this program to ultimately be value wise >> it's going to be in the billions of dollars. we don't have a final figure

yet. that will be determined between now and some of the solicitation time frames. >> all right john sherman, the acting cio of the dod. thank you for joining us today >> thank you very much it is time now for trading nation >> yes, it is. >> didi taking another tumble amid a broader tech beijing. your trading team, all right clint and gina it is just gina. gina, let's talk a little bit about what we're seeing with the chinese adrs that are selling off given what's happened on the regulatory side of china investors seem to be somewhat flat footed here were they right to be surprised or have the risks always been inherent >> i think they were right to be surprised in that this has been creeping up on us quickly, but people who have been watching this have been concerned about what you call a broader tech

crackdown. last week it was alibaba and it was antitrust issues and this week it's didi and it is cybersecurity and national security issues and here's the thing, morgan. they're talking potential more than just use of data and collection data, but actual cross-border transfer of data and national security issues and the down side is really negative we are talking about potentially having to de-list in the u.s. market, having to re-certify in china and all of those things will be negative along with really steep fines >> all right gina sanchez, thank you. we're keeping it short and for more trading nation go to our website or follow us on twitter @tradingnation. >> whether it's tv, music, sport, streaming is king and there's a ton of money on the table. we will speak to the agent to the stars, casey wasserman about how he's advising clients next and now the latest from trading nation.cnbc.com and a word from our sponsor.

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allen's annual broker

meeting is back. they're in sun valley, idaho, talking business and planting the seeds of the next blockbuster deal julia boorstin is there with a major player in the entertainment industries i am joined by casey wasserman who is a media, sports and music company. more recently music and also chair of l.a. 2028 we'll have the olympics in los angeles. i want to start with the olympics and it's the center of so much cultural conversation right now. you've been pushing for them to change the rules about protests on the podium. there's this conversation about the banning of sha'carri richardson, what are the olympics going to be like this year >> first of all, i'm excited despite unimaginable circumstances that tokyo 2020 is going to happen this summer, and i think it's going to be an

extraordinary event and obviously not going to be as enjoyed as normal olympics and it's a remarkable thing to bring the world together and beginning to see the world come back together so it's exciting. there are a lot of rules and a lot of sports and rules aren't meant to be static and whether it was rule 50 whether it is about non-political speech and the olympics is unique with 200+ countries competing together with a common ground and common set of rules and i understand that and my point is that the world we're living in is different and anti-racism isn't political. it's about human rights and isn't unis verial. i hope the ioc continues to push the rules forward. i give her credit for being vulnerable and honest and admitting the mistake, but the question is the rule appropriate, is marijuana a performance-enhancing drug to any sport? and given all of the other things that people do and take it seems that's a rule that could be reviewed. >> you are chairing the super bowl which will be in los angeles coming up, and i wonder

how you think live events in general whether with the super bowl or the athletes that you're playing in will be different post-pandemic and will it go back to a pre-pandemic world there may be some new health protocols and what you see on the field during competition will be great and for fans it will be different and better and whether that's efficiency, in and out of venues and contactless food and much more engaged environment where you can enjoy the game and get stuck in the other stuff less because it's both worth your time and healthier for all of us. so i think there will be a new normal for the fan experience and i think as you start to see whether you turn on wimbledon in the morning or any of the other sports events that are happening now, and seeing fans in the stands is what makes this special? >> you have represented athletes for many, many years now, and i'm wondering as you take a look at the changing media landscapes as well as a lot of these sports being available on streaming and the nfl and the nhl both making

the big streaming deals and how does that change the landscape for your athletes? >> athletes are a participant in the economic revenue streams that are generated from sports and sports rights and the more interest and the more value in sports rights and ultimately athletes benefit from that as they should being the stars of the show, if you will. so i'm excited to see more and more players having more and more interest in sports rights and obviously sports is something that is truly unique and matters live is something that will continue to be relevant >> you recently got into the music business in april launched a music label and i'm curious looking ahead whether live events or streaming will provide a bigger opportunity certainly in the music space it will be live, vents. streaming is shown to be a nice compliment, but nothing can replace the experience of live events it's built for the in-person experience whereas sports is built for as much consumption as it is in person and it's different. i do believe that you'll see a wild next few years in the music

business and all of the bands are headed back out and people are super excited to go to shows again. we are glad to have you on to talk about the future of sports and music and we'll let you go back to do more talks of deals casey wasserman, thank you so much today >> it's interesting we had at one of our events, morgan, a couple of weeks ago. the head of motown record, a very inspirational young woman at the top of their group, i asked her why are there labels today, in the era of streaming why do you need a label when i can create my product and drop it and if i have a big social media following i can do my own publicity and her answer was basically, in establishing the relationships with radio stations and getting play for the songs and also in getting distribution across multiple channels, and also being able to help with what wasserman just said was the important piece and that is the live event stuff.

>> that's right, but the days of development by radio record labels is over, but distribution is the key. >> yeah. >> so, yeah. interesting to hear those comments >> nice to have you here >> nice to be with you >> with major averages higher. >> come back any time. >> will do all right. thanks for watching "power lunch" everybody, closing bell starts right now >> thank you, morgan and tyler and welcome to closing bell. i'm sara eisen at the new york stock exchange we'll see if we can get a record close as well. i'm courtney reagan in today for willfried frost. the ten-year yield hitting 1.29% its lowest level since february. the fed minutes out last hour showed officials at the last meeting discussed when the central bank might start scaling back bond purchases and energy another big driver, getting crushed once again, the worst performing sector on the s&p 500. >> coming up on the show, noted tech investor dan nile