i personally added to -- >> embrace it. >> i'm giving it a big bear hug. buy citigroup right now. i did during the show. >> you bought citigroup during the show >> yeah. >> you have to do that after i gave you that new name thanks everybody thanks for watching as well. "the exchange" starts right now. thank you, scott hi everybody this is "the exchange. we have record highs today for the nasdaq and s&p 500 the dow is about 100 points away and energy has been leading the way this year. we have a name you can still buy at a discount and a buy stock worth picking up despite the esg push and the billionaire space race, richard branson goes, jeff bezos is next, and elon musk buying his ticket so, why is virgin galactic selling more stock tiktok says don't talk about crypto while its parent company backs away from ipo. two rivals are racing to go

public we start with the record highs dom chu is here with those numbers. >> i love me some grilling just like i know you and your family does things are heating up in the market i get to draw those yellow gold stars before the s&p 500 and the nasdaq because they those hit record intraday highs today. 100 point gain there 10 points for the upside and the nasdaq up about 2 points, the laggard on the day so far. the key focus for many traders entering this earning season and every earning season is the financial sector trade and those banks are a key focus right now, especially with 10-year note yields holding steady, trying to find footing at 1.3%. it's at 1.38% right now, the lowest trade since the spring. and that's going to come into the focus because on an intraday basis we are seeing a rally.

the best performing sector so far has been the financials. as you might expect a little bit more activity ahead of the season jp morgan chase bumping up, bank of america up, citigroup up 1% and goldman sachs up as well these four stocks all report in the next two days. so, certainly a lot of catalyst activity on that financial front. kelly, i'll sends thing back you to you >> are you a webber or trader guy? >> we are a webber household, four burners, three big burners, searing station with a stove on the side it's been one of the best used things we bought in our house. >> you know what you're doing. come over any time dom dom, thank you dom chu. my next guest says there's still room to run. he names phillips 66 one of his

top plays on the broader recovery he sees potential for the dirty stock of yes ter year. dan, it's great to have you back is it just a coincidence these are anti-esg trades? >> i think it's a little bit of a coincidence right now because i think what we're looking at is you're looking at companies that are undervalued, that have strong earnings momentum and ones that are going to generate a high yield while you wait. if you look at phillips that you alluded to, phillips is at a point where the stock is down about 20% and yet overall demand for energy is only down about 10% from pre-pandemic levels so, you have a stock that is clearly undervalued. about 66% of their revenue is coming from upstream, refining and storage. they're at a level right now they're trading at about a 12 pe and it has a 4.4% yield. so, to me it's a way to play on the energy side. it's certainly one of the most

undervalued names that you have in the energy complex and yet you have a significant amount of upside with a lot of certainty it's undervalued and you get 5% while you wait i think it's a good sound value. and along with that same yield trade, if you will, as this market potentially stalls out here is altria it's trading eighat a 10 pe it's paying a 7.3% dividend yield. so, you're going to get a 7% return with a 30% premium of free cash flow over that and while you wait this out. >> well, by the way altria has been a great investment for the past 20 years when pension investors divert from it you have to wonder as a similar plays out across the space altria has diversified, beer and wine, business stakes thinks they could be a player in the cannabis market and so forth

all being part of a yield play, a cyclical recovery play, what do you think about that when you see the 10-year parked at 1.35%? >> look, i think you have a situation where we have a market that's largely driven by three things right now number one, there's a tremendous amount of liquidity. the fed has put $4 trillion of assets in the market the last few months and another trillion in the next year there's a lot of money chasing a lot of areas a lot of that is going to come into the market. and in essence from consumers and investors, there really isn't a lot of alternatives and places for them to go. and certainly the sentiment is being bullied up by strong earnings and we're going to get good earnings this week. we're likely to see this quarter be over 50 for the s&p and we're going to be at over 200 s&p run rate so, people are going to continue to gravitate to this market. i think when you're seeing what's happening with overall interest, i mean, look, the fed is going to continue to issue paper. you're seeing a demand for it. and that liquidity is going to

drive this market, though we think the earnings, as we go forward for the second half of the year are really going to be the overall driver of this market it is going to be hard i think to move forward with higher pe, so earnings are really what we're very focused on. i think we'll start off with a good week this week. >> phillip 66 you like you also like altria national, which is a yield play. we appreciate it for joining us today. speaking of bond yields. let's talk about what happened with the 10-year auction that just took place. rick san telli landing by with the results. how did it go? >> investor and demand, b plus pretty good auction. let's go through it. 38 billion, reopened 10s this is the second time we're adding to an issue reopening in may, reopenings tend to be smaller yield 1.371.

and that's pretty much right where the issued market was trading. so, it priced well and if you look at the bid to cover all the internals, they were at or better than 10 averages i like to pay attention to the indirect bidder, of 63.5 is very solid. represents foreign interests all in all this is the second auction today and we know the fed will come in and buy about 54% of all the paper we issue so there's going to be demand times two as far as interest rates, pay very close to the zone of 136 to 138 should we get above it or below it, look for a little bit of acceleration in the direction it trades back to you. >> more than 54% of the new issue is still astonishing to think about. that's what the fed's doing. rick, thanks for bringing us those auction results. 10-year trading 1.37% in the aftermath. let's turn to g20 financial

leaders agreeg on a blueprint to overhaul the international tax structure over the weekend it would accomplish 15% global tax rate taxes based on where products and services are sold in certain cases instead of where a company is headquartered world leaders are expected to approve the plan at the g20 summit in october, but critics worry they could face difficult hurdles, especially here in the u.s. dan, are they going to pull this off? is this really all about raising u.s. taxes and making sure the money doesn't leak abroad? >> there's a couple factors going on here, kelly first what i would argueis treasury secretary yellen has made tremendous progress in moving the ball forward on some sort of global tax agreement you remember when this process started people would say why would other countries agree to raise their own taxes. and she's slowly making progress, but we're not there yet. i think when you get into the details of what the agreement

was reached with the oecd, you see there's still some holes in the rate, in the base, and those issues are going to have to be worked out why are we having this conversation first joe biden wants to raise taxes on u.s. multinational income they're worried about raising taxes on the u.s. and taxes outside the u.s. not going up at the same time. so, they want a proportional shift. and second to your point in the opening about tech companies, tech companies are being hit with discriminatory taxes called service taxes. this is a negotiation to create a new global wind fall profits tax on companies that would be based on where they're located so, there's two different taxes there. one is a wind fall profits tax the other is a global minimum tax. and it is very much integrated into the negotiations with the u.s. on corporate tax reform that you'll see congress debating over the next few months >> i'm sure there's got to be

something in it for these other countries to go along with it and maybe saying they'll pay tax based on where they sell is a little bit of that reading through the structure is the functioning. you have the senate and the house of representatives you have one area where people have a proportional representation you have one area where it's non-proportional, where it's more just based on financial heft let's boil this down to investors. if i own amazon, the big tech companies, you name it, are they going to face significantly different taxes going forward? >> yeah. first that you're going to get a higher corporate tax rate as part of the biden tax plan separate from all of this and higher taxes on multinational income as part of the biden tax plan those provisions will cut earnings next year from 11% to 5.5% so, that's a pretty significant cut and that's on the compromised plan and then you get to look at what the global tax agreement's going to be. and it's not just tech we think johnson & johnson are going to be affected by this

we think it's a much broader set of tax increases, and it will be taxes largely on u.s. companies that are then being paid to foreign governments, about 62% of all companies impacted will be u.s. companies, 38% from other countries. so, this is a really significant change it will change corporate taxes you can argue whether it's going to be good or bad. but to your point, it should lower earnings, all else being equal, if treasury secretary yellen is successful >> i guess my final question is just about cut those earnings in half based on what you were saying for next year is there approval required by congress do you expect any pushback in the u.s. and what about elsewhere i think hungary was one of them. what's the status? >> yeah, so this is the big risk here the u.s. wants to go first on the global minimum tax, could be likely included as part of the biden tax plan this fall and the u.s. would then impose

it but then other countries wouldn't at first. so, congress is going to want more assurance that other countries are definitely going to act on this the windfall profits tax, which is this tax on large companies, janet yellen is saying that won't be ready until 2022. that is a much bigger hurdle in congress, kelly. that is a change in tax treaties that will require 67 votes in the united states senate that means you're going to need at least 15 or 16 republicans to be able to pass that through and that's going to be a much tougher slog to go through and i've got to tell you the european countries don't want to do the global minimum tax without the windfall profits tax. so, there's a lot of moving parts here, it's very complicated. and the administration really needs everything to go right to be successful. >> i understand it a little better now thanks for your explanation. i appreciate you following it and explaining it to us. thank you for your time today. virgin galactic founder sir

richard branson successfully riding into space, but shares of the company taking a swoon today after they filed to sell up to half a billion dollars in stock. we'll look at why they need the extra capital now. top states for business is back how the pandemic has changed criteria and another hint about the winning location it's all coming up after this quick break. >> announcer: this is "the exchange" on cnbc. e before beau? why not both? visibly diminish wrinkled skin in... crepe corrector lotion... only from gold bond. ♪ ♪ experience, hyper performance that takes you further. at the lexus golden opportunity sales event. get 0.9% apr financing on the all 2021 lexus hybrid models. experience amazing.

welcome back to "the exchange." virgin galactic is celebrating the success of its fourth space flight test. this one, of course, included founder richard branson as a passenger. but shares of the company are sliding today as they announced plans to sell half a billion dollars in stocks. morgan brennan joins us now with the latest this hour hi, morgan >> reporter: hi, kelly that's right this is a major milestone for commercial space after virgin galactic successfully completed it's first fully crewed flight to the edge of space yesterday now, post-flight, i asked founder sir richard branson, for whom this has been a life-long dream, whether he will make it again. >> i would love to go this afternoon if i -- if the opportunity arose. but now as a proper citizen of

virgin galactic, we've got hundreds of people who have signed up to go to space they need to take all the seats. and i will come and bid them a wonderful voyage like we've had. >> now, speaking of those ticket holders, of which there's currently 600, 60 of them were on site for this flight yesterday. i spoke to several of them who told me it was a very emotional day. i'll also note elon musk is one of those 600 ticket holders. we found that out too. for investors, the focus and wall street, the sites are set on the next round of tickets as we get ready to see those sales reopened michael glazier told me pending full analysis of yesterday's flight, an analysis that is happening at spaceport behind me, that galactic is in on track to open reservations later this

summer after its next space flight, which is expected in the coming weeks in all you're going to see two more test flights over the coming weeks and coming months by the beginning of early fall if all goes according to plan, then commercial service will finally launch early next year in the meantime, you just mentioned, kelly take a look at the share of virgin galactic. talk about a rocketship coming into this flight they ran up pretty dramatically over the last couple weeks but today coming back down to earth, down 14% after the company did announce this morning that it will sell up to $500 million in stock. i think the bottom line here, space is hard. this is a long-time industry saying, but you can argue that space investing is hard at least right now as well. and when you're talking about a name like virgin galactic, as we are seeing, it is a volatile stock because it is pre-revenue. >> so many different questions, morgan i don't think i have time for

any of them, but here they are i'll rattle them off sell capital fou had why not sell shares in future space flights? also i find it striking, and this is a dumb question, i will admit, but that all of this is taking place in the u.s. sir richard branson is a british hero, right? and it's just here -- and you're in new mexico. i don't know if you see scott cohn over there, but this certainly can't hurt >> yeah, so in terms of new mexico, this is spaceport america behind me. it was the first fully designed, full purpose, completely focused on space project i believe in the world. and it was a nearly $250 million project that was funded by taxpayers here in the state of new mexico, a huge multiyear bet going back to 2005 on space tourism. i will tell you i spoke to the governor of mexico yesterday,

michelle lujan grisham and she says she sees this as a major pillar of economic growth, something like billions of dollars for new mexico in the coming years that being said, this is just one spaceport. virgin galactic is looking to roll out a major fleet of spaceships and have spaceports all over the world to do these fliegts much more regularly. all that takes money >> i know. absolutely a lot of capital morgan brennan following this flight for us. let's bring unanin holding price target at $41 or just about that the stock is down 10% in the past month it still more than doubled over the past year. ron, it's good to have you is this a basically buy the rumor, sell the fat kind of move >> good afternoon. good to see you. i think that's part of what's going on several things, right? the capital raise i think came as a little bit of a surprise,

although the company did say they are opt opportunistic when it comes to these things one of the things we like to highlight is they're not going to be cash flow positive until 2025 so, when you look at the move of the shares into this, they kind of went galactic, right? that more than discounted in the optimism around this flight and also potential future growth so, i don't mean to diminish at all. it's a remarkable wonderful achievement. but the shares are more than reflecting that. >> so, they're four years away from generating positive free cash flow, let alone consistent earnings they would be insane not to be public if investors are going to hand them capital in that kind of outlook, why not take it what are they going to do with this capital how does that change their trajectory for space flight and space tourism? >> there's a couple things they could do with it there's investments they have to

make in other space ports. there's building out the fleet of spaceships that they would like to do and honestly where the big money is, when you think about the commercial space market, commercial space isn't just space tourism, but special space is also building out space infrastructure, meaning satellites, launch, satellite service, all kinds of stuff, point to point travel. so, one of the things that virgin galactic is talking about in the past is not just taking a ride into space but using space as, if you will, the tunnel to go someplace else. so, just imagine the aviation. you can go for a flight in an airplane that's fine. but in the end the real money was taking the airplane going from p point a to point b. and that's probably where the real big money is in this market >> it's fascinating. blue origin going public, other names in the space to watch. i'm not saying you're a venture capital guy, but what do you think in terms of future competition for investors'

capital? >> that's a fantastic question if you think about what's going on in commercial space, it's a fantastic area of innovation today. so, across the spectrum there is a company -- i'll name a few, black sky, rocket wires, red wire, ast, spire global and the big guys people have talked about spacex and blue origin so, i think within a relatively short period of time, call it 12 to 24 months we're going to have a whole new coverage universe. virgin galactic was really the pioneer, they were the first one, but there's a lot more coming >> you can maintain the mover advantage for a long time, especially with the notoriety that richard branson brings to the table. thank you so much today. >> great to be here. thank you. >> ron epstein from bank of america. coming up bytedance reportedly shelved its ipo plans after a warning from chinese regulators we're going to look at where

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welcome back to "the exchange." i'm rahel solomon. and here is your cnbc news update florida's lieutenant governor

and miami-dade's major voicing their support for thousands of people voicing their support in cuba and the ousting of that country's president. they are monitoring the situation in cuba and preparing for any enemy impact on florida. and tonight on "the news," south african riots and looting. and more than 200 arrested many businesses have been looted and vandalized in rome, pope francis is still recovering from colon surgery. he had been expected to be released by the end of last week on the west coast, firefighters battling multiple wild fires made worse by the latest heat wave in california the beckwourth fire has burned nearly 90,000 acres and destroyed 20 homes in one town alone. >> rahel, thank you. those concerns over the covid delta variant as the number of young americans

getting vaccinated continues to slow let's get to meg tirrell with the latest on the covid news today. meg? >> hey, kelly. well, you are seeing the areas of the country with low vaccination rates seeing the most spread from delta and it's driving not just cases up but also new hospital admissions now too this is happening in states around missouri, arkansas, louisiana, florida a big concern now as well as nevada. cases overall up 30% week-over-week, now approaching 18,000 daily you can see the red there. these areas are the highest transmission per the cdc new dalety admissions into the hospital up to 2,200 a day that's up 15% week-over-week as well as you mentioned, we are starting to see more hospitalizations among younger people as vaccination rates have not been as strong there that light blue category you see at the top is 18 to 49 year olds getting hospitalized with covid, more than 40% of the total

hospitalizations, the cdc noting as more older people are more vaccinated if you look at the percentage of people vaccinated by age, it's the older categories that have the highest rates whereas it essentially declines as you get younger down to folks who are 18 to 24, 42% fully vaccinated, kelly. so, there is a real concern about this and a real push from health officials to try increase these vaccination rates. meanwhile, of course, we are talking about booster shots. pfizer set to meet with u.s. health officials this evening. they'll discuss this data that led to the dust up last week between pfizer and the fda and cdc over whether a booster is needed israel over the weekend said it's going to start offering third doses to people who are immune compromised because they think they need extra protection as delta is prevalent there. >> speaking of this brouhaha, you have the world health

organization saying something to the effect of vaccines should be prioritized for countries where they haven't had first and second round administered yet as opposed to countries that have is it a zero sum game? can't we do both >> there were pretty strong worlds today from the folks in the w.h.o. and task force, saying the countries talking about giving booster shots are countries. she estimates it would be 800 million shots we would be using for boosters before a lot of countries in the world, lower income nations actually have access for even health care workers. the director general saying they've been trying to push solidarity as the main word in the pandemic and what he is seeing -- he seemed reluctant to say it -- is instead greed. so, in a lot of ways, it is a

zero sum game because when you have a limited number of doses, if you're using them for third doses or boosters, that's not going to folks who haven't been vaccinated yet >> i wonder if vaccinating or keeping the population vaccinated who's more likely to travel or spread it or what have you is still as important as places that haven't had the rounds yet this will play out for the next several weeks. coming up, bytedance backs away, tiktok pulls the plug, and what's cooking in the ipo world? it's all coming up in rapid fire check out share of cheesecake factory we're talk about 3% moves to the upside today after raymond james upgraded both stocks the market is underestimating the come back for full service stras eyayreauntth s for more on that head to cnbc.com/pro back in a moment

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hi everybody let's catch you up on a couple stories that should be on your radar. it's time for rapid fire and here to break down the headlines today, we welcome bosa along with casey newton and michael yoshikami, founder and decree of destination wealth

management we've got a lot of ipos, lot of crypto, lot of things to talk about today. let's begin with the china crackdown. we're learning more. it's becoming clear these moves have been months in the making bytedance shelved plans for its offshore listing indefinitely, the journal reporting that government officials asked the company to address security risks and china widened it's course on listings this weekend by requiring tech firms to seek formal approval ahead of going public the article implies that bite dance maybe knew that they were kind of in a gray area but had to push ahead with the listing anyway because to some degree all the capital it had raised. >> right i think you mean didi, right didi had to push ahead, whereas b bytedance put their ipo on ice for the time being, which raises a ton of questions for didi investors. why were they telling beijing

one thing and wall street another and pushing forward with the ipo. it was pretty incredible how quickly they rushed through that road show, confused a lot of people there was no celebration around it they listed on the ccp's 100th birthday so, there was a lot of question. it set another company which was in a better profited cash situation, which could wait on another ipo. it raises questions of course for american investors, how do you trust these companies, which is why we are seeing all the pressure on all the other names as well. >> and where does this go for the big chinese tech giants? i understand the communist party doesn't want anything that undermines their surveillance, if you will, of the chinese public or lets this information get into hands overseas. but it still hobbles these massive tech companies at a position of strength >> absolutely. i mean, the situation in china

is very chaotic right now. i think it's extremely hard for us american reporters to crack what's going on over there but every day there's a new story about a company that is being under investigation for its data security practices. mergers are being blocked. ip o's are being blocked i think there's an atmosphere of terror with the tech giants. but at the moment it looks like their global prospects are far more limited than they looked three months ago >> i should bring this back to american companies and what investors want you have an administration that is interesting in pushing forward with antitrust while at the same time the way the chinese is creating openings for things like tiktok you could have instagram reals or someone step up into the void should we focus on seizing the opportunity instead of hobbling our own big tech competitors

>> well, i think that's really the mood in the world right now is really to try to control the power that technology companies have the biden administration announced new rules just here in the last week or so. you know, kelly, i talk to people in china literally every day. and i used to go to china every six weeks prior to covid just to see what's happening so, i can tell you what's happening right now is there really is just a real shift from allowing capitalism to really crack down and making sure that companies know who's in charge, starting with jack ma, who has kind of vanished in a sense ever since issues with alibaba. so, i don't think we're going to be able to get away from this to answer your question we're going to see a crackdown on technology companies. i expect that to continue. and essentially china companies will understand how the game works. >> michael, here's my question i don't think they can have it both ways.

you can either have profitable companies growing incredibly fast and getting strong returns to investors, or you can have the chinese communist party maintain its power but i don't think you can have both if they're choosing the latter right now, what would you say to the people who might be interested in investing. we talked about this last week when with we had our friend in api on, derrick scissors he said you have to be careful with a lot of these tech platforms and these areas of the market would you agree with that? >> first of all i think you can have it both ways. i think what you're going to have is companies that are going to be profitable but less profitable if you look at what how that's embedded in the chinese system, they're going to make money. what it is is about tempering expectations, about what growth is going to look like and what unbridled growth is going to look like and expansion. you can play the chinese aging

market, which is a demographic play on internal consumption, which is what china is switching towards. the last time i was in shaman, which is a huge private equity space city in china, that's what all the managing directors were telling me essentially they're trying to move the economy toward consumption. if you take a taxi in china, they don't want your money they give you a code that they have on a plastic wrapper that they just pass to the backseat of the taxi and you scan your we chat bar code. so, i think you're going to continue to see profit just investors need to temper their expectations it's not going to be as euphoric as it was. >> this leads to our next topic. casey and deirdre, my question is is there a cause and effect here tiktok is planning financial

discussions. crypto especially, casey is this all related back to the issues the parent company is having, or do you think something else, specifically, is going on there >> you know, my sense with this is this is actually more of an american concern tiktok was starting to face a lot of pressure in the united states based on some of the scams and the bad advice that was running rampant on the platform there are a lot of young people who are using tiktok and a lot of creators were offering sketchy financial snake oil to them so, tiktok had to act here or risk being investigated by the ftc. >> deirdre, what would you add >> i would add we know this is right. we know china is cracking down on financial services. that ipo totally derailed. this is, i think, about the american user. actually i went down, kelly, a rabbit hole of videos and there was good stuff on there.

there was one user telling kids they should ask for a custodial account over a ps 5 because it will compound and return them more money over time and really good videos that speak to that generation that aren't preachy or judgey. the problem is that tiktok algorithm, which is so good, which eventually most likely leads you to the snake oil salesman >> they're facing charges in china and the u.s. as the areas crack down on the different areas of concern let's talk about binance for a moment the largest crypto in the world is facing regulatory tightening. "the wall street journal" finding that groups all around the world are working with lawyers to recoup massive losses they incurred when it froze on may 19th and according to gizmo, the ftc has found 760 complaints filed against the platform since last june

so, casey, what's the future of binance at this point? we've talked about coin dust and some of the others that are on the scene in a big way -- coin base, i'm sorry. does this create a massive opportunity. there's no way these users are going to be recouped for these losses with futures and highly leveraged and all the rest of it >> that's right. i mean, as i've been reading these stories, the main thought that i have is if you're going to do risky options tradings on crypto, do it with a company that has a headquarters. part of the problem here is that binance i guess technically isn't located anywhere so, users can't even figure out who they're supposed to sue. i do think they're there as an opportunity for a crypto trader to come along with a bit more traditional approach to taxes and compliance and customer service. >> michael >> yeah. i personally would stay away from anything that looks

anything like companies that are trading in crypto that don't have transparency, just mentioned not having ed had quarters does seem to be a bit problematic. this whole space is all speculation at this point, right? it's really based on dot com we'll see how it shakes out. i would certainly not as a prudent investor and my firm as a fiduciary would be dancing in this area. >> a quick final word. >> my ip just went out it's deirdre grilling season is in full swing and grilling manufacturers are cooking ups right now. weber will webr. they are seeking valuation between 4 and $6 billion this is after traeger grills announced plans for a public debut. and raise about $100 million through the offering casey, i guess this is their moment they're all seizing it

>> i mean, what better time to ipo than at the height of summer grilling season? you know, they may have even missed their window. how did they not get this thing out the door before the fourth of july. >> agreed, agreed. deirdre. >> i'm not much of a griller so i don't have a ton to add on this but i have been watching shares of yeti, this whole outdoor play that people are going to get out, grill more, go camping more so, i suppose that makes sense but $6 billion i don't know someone's got to tell me if that's an overprice or underprice for a grill maker >> michael, do they have a future in the chinese market >> i don't know how the chinese are going to really take to grilling i will tell you i know someone in private equity that pitched yeti as an investment. they basically said -- i don't know how many years ago this was. they said, are you kidding me, someone who makes ice chests is there any kind of valuation in this thing? and look what's happened so, i wouldn't put it past

grilling companies to have an exciting summer as well. >> as i sip out of my yeti whatever tumbler thing i tried to get a cooler. it was like $280 i did not walk out with it >> now you know why the stock is up >> it's brilliant. it's like lily pulitzer is people are going to pay for it it's brilliant deirdre bosa, casey newton and michael yoshikami. it's pack after a one year hiatus scott cohn is in this year's winning state and he's going to bring us another clue. scott? >> business is just flowing into this state, kelly. imagine that we go to great lengths to measure the traits, all 50 states for competitiveness we will tell you about how our methodology has changed this year in this watershed year, and we'll also have another one of our diabolical picks when "the exchange" ntuecoins.

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as the u.s. economy comes back to life, the battle between the states for business and jobs sheeting up. which states are best positioned to win in this new world the top states for business is back to tell us. we've been rating the states since 2007 based on ten categories of competitiveness for a total of 2,500 points. this year we've adapted that formula to a vastly different world. scott cohn tells us how it works. >> reporter: we start by learning what the states are talking about, their pitches to business >> taxation, good work force training and a big welcome mat for new residents. >> reporter: the more something gets pitched, the more weight it carries. this year with the economy still rebuilding, they're pushing low taxes and incentives, making cost of doing business our most important category, followed closely by infrastructure, not just roads and bridges anymore we look at sustainability,

broadband and reliability of the power grid >>al manies in texas still left in the gold and dark this evening. >> we broadened our measure of quality of life, a new category, life, health and inclusion, looking more closely at health care, including covid vaccination rates and inclusiveness, including voting rights we look at work force, availability and diversity, the economy including state finances friendliness, regulations and red tape, access to capital especially important now, technology and innovation, education, and cost of living. we actually look at 85 metrics in this year's study, the most we've ever done. we wanted to take extra care to do it right this year. you can read more about our study at topstates.cnbc.com. here i am in the top state for business which real reveal tomorrow another patented diabolical top

states hint. it is talking turkey >> talking turkey. >> reporter: remember, these hints are diabolical >> understood. i want all of our satellite listeners, scott, to know you are telling me all this while paddling a kayak right now let that mental image sink in. the work from home chart, i know you're alluding to, it would have to be one of the big winners in thework from home era. i've written about tennessee >> reporter: the work from home era, as i get away from you here and i'll try to talk about this as i pad udle in a kayak, it changed things but it's interesting that in a lot of ways it didn't you have companies that are much more attuned to where their workers want to be and so that really just sort of intensifies the battle we've been looking at for all these years since 2007 so it's really been a

fascinating, fascinating year. we look forward to revealing the whole study tomorrow >> i agree and good luck getting back to shore as the current carries him away keep zooming out he's pretty down river the camera must be onshore, though we'll let you go as he said, the big reveal is tomorrow morning on "squawk box. bitcoin is down 2.5% but has dramatic gains if you're an investor and you have those gains you're sitting on and you want to minimize your capital-gains tax, we have seven ways to do that next

welcome back despite bitcoin's volatility it's still up more than 15% this year as some investors take profits, they're staring down some pretty big tax bills. but one russian expat has a way around that. hi, mackenzie. >> reporter: they help clients obtain a second passport in their pick of seven mostly

tropical tax haven states all of which are exempt from capital-gains taxes on their crypto holdings. in most of these destinations it's a citizenship by investment program which essentially means an individual makes a donation into the sustainable growth fund of the country in exchange for a passport and that legal residency status is what lets people geographically shuffle their crypto holdings around in order to avoid paying taxes. now the company's founder says that clients typically make a $100,000 to $150,000 donation. on top of that they pay some due diligence fees, government fees, and then $20,000 for her legal fees all in the average check ranges from $130,000 to $180,000. as for the core clientele i'm told most customers are from the u.s., the uk, australia and canada

>> do they have to give up their citizenship? >> reporter: it's treated like bitcoin and if a taxpayer is a u.s. citizen or even just has a green card, the taxpayer owes u.s. tax on any crypto gains they have no matter where the crypto or taxpayer is located. and i actually spoke to one u.s. citizen in the process of applying for a second passport in st. kitts and is seriously considering renouncing his u.s. citizenship so he won't face capital-gains taxes. >> all right, maybe capital-gains taxes aren't so bad. pretty fascinating detail. thank you. that does it for "the exchange." up next on "power lunch" spring is usually the busy season for home buyers. we have the details after this retirement income is complicated. as your broker, i've solved it. that's great, carl. but we need something better. that's easily adjustable

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t-mobile for business uses unconventional thinking to help you realize new possibilities on america's largest, fastest, and most reliable 5g network. plus customer experience that finds solutions in the moment. and first-class benefits, like 5g with every plan. network, support and value-- without any tradeoffs. that's t-mobile for business. hi, everybody, and welcome to "power lunch. i'm tyler mathison along with kelly evans. topping the hour, unloved and ready to rally earnings season is here and as companies get ready to report our next guest says a list of neglected stocks