wall this the room and you could invite friends in, imagine strapping on a vr head society and hosting a party for your friends with a lot of art. >> i can imagine it in the meta verse and in the real world and i can imagine how they are all colliding. roger dickerman of artifacts that does it for "the exchange," everybody. join us in our metaverse it's "power lunch. it starts right now. is it real, or is it metaverse? welcome, everybody, to "power lunch. we are tracking the decline in the nasdaq plus we have a trio of power players this hour. first up, the kbw ceo. we will talk about the coming wave of bank earnings, one of the hottest sectors on wall street but there is one emerging issue hanging over the group we will explore that and tell you how the profit. the master card ceo's company plan to be a leader in

the fast-changing payments space. also landed at number 13 on the just 100 list of companies and the ceo of quantum skate, the battery start-up maker pushing beyond automobiles with a new energy storage deal that could be a game changer for the industry. >> tyler, thank you. hi, everybody. the focus this afternoon is on the weakness in tech the nasdaq taking a leg lower about 90 minutes ago speculation as to why but mike outlined the point is they are selling the rebounds down 1.3%. apple down 1%. microsoft, 2.5%. two thirds of the stocks are in correction territory, down 10 fundraise from their 52-week highs. s&p and the dow trying to muddle through. the dow hanging on to a gain the s&p down 21 right now. the next hurdle for the market, head wind, tail wind, it is

coming for the banks they start reporting earnings tomorrow the sector one of the best performing over the past month jp morgan up 7%. citi, b of a, wells all up more than that making this season a critical one for the sector. wilfred frost is here with key issues to watch. >> the banks index which you were alluding to up more than 50% since the start of last year and up an impressive 12% year to date clearly, the bar is higher for earnings than it has been for any point in years that said, many banks will report all-time record full-year revenues once q4 is in the books. some already did that after just three quarters last year as ever, the guidance will be key, in particular, nii, the income on net interest income. linked to that will be the youth lock for loan growth and the economy as a whole the other area of focus will be

the expected pace of normalization in capital markets activity for many quarters now people asked whether it can last. it has but it is expected to slow partly this year. when jeffreys disappointed earlier in the week, goldman and morgan stanley shares both fell accordingly. these two factors will not only be important for the entire group but within the group year to date performance highlight invests are expecting the baton to be passed to names like msnbc to interest rate sensitive names like wells fargo. tomorrow, jp morgan, citi, wells fargo, then bank of america, and goldman are all next week. >> granted the bigger banks have a month later and they say december was better. do you know why it was so slug niche that period for jefferies. >> clearly there is going to be

a theme in general capital markets are less at attractive versus interest rate sensitive positive business. but we may get a different picture of company performance within each subsector. what will be interesting to see tomorrow and with goldman and stanley next week is whether jefferies was more stock specific for the quarter or whether it is broadly going to affect all the banks fixed income trading hasn't been in key area for the capital market's performance over the last year or say we have had amazing m & a performance, ipo issuance and trading in general there are other areas where morgan stanley, goldman sachs, and capital banks citi and jp morgan can differentiate themselves and pick up the slack. although they fell a little bit in lieu with jefferies, but not as much. >> and jefferies had other positive trends, advisory, equities at capital markets.

it wasn't all bad. wilf, thank you. we will see you soon we appreciate it >> pleasure. >> ty. >> kelly, here with more on what to expect from the big banks and the impact of rising rates, tom misho, president and ceo of kbw and a number one adviser on bank m&as tom, good to have you. let's pick up where wilf just left off that is on the trend of m&a. do you see it continuing into 2022 not just in the banking area, but more broadly. >> we do we think that m&a is going to be one of the bright spots for investment banking going into % the year so much so that we are forecasting a 100% year over year improvement in jp morgan's m&a revenues tomorrow morning when they report the broader investment banking story we think is going to be one of conflicting trends. we think m&a is going to remain strong remember, too, the role of

private equity in the m&a market is different this time because of the explosion in private equity we think that's going to give a longer tail to m&a this cycle than it may have in prior cycles that's different aspect to it. we also think capital markets will remain strong maybe not at the record levels of last year but fixed income seems to be the first segment that's going toward the normalization. jp morgan we think is going to be like the first quarter of 2019 doesn't mean it is terrible, it is just going back to the more normal level. >> the m&a activity continues in part because there is so much coming from the private equity area as well. >> that's right. if i were to show a pie chart going back ten or 20 years ago how much m&a was done by strategic investors versus private equity owners you would see a shift. private equity owns more

companies, they have pour dollars invested it is a natural part of the life cycle for m&a to be at the ends of the investment. that alone is creating -- and there have been so many dollars that have been raised in private equity over the last five or six years, it is part of a bull case for that business line. >> if you had your feet to the fire and you had to choose between the big money center banks, the murderers' row, the goldmans, the bank of america, the jp morgans, and the wells fargo, and the mid-range banks, i will include pnc, though it is foxing on the door with big banks, and some of the regional banks for 2022, given the real estate outlook and given the nature of their business, which would you choose >> absolutely i would be focused on the spread lenders. they are the one who aregoing to have more revenue momentum. we believe they won't have the head winds of offsetting some of this normalization and investment banking we are looking for net interest

income to ramp to give you an idea of how dramatic the change is, i think it was december 20th the ten-year was around 1.35 it is hit 1780 in the last week. that is a material change for the spread lenders you go back to september when we upgraded the group we were only thinking maybe there would be one interest rate increase this year now the debate is around three and four i think that conversation on all of these conference calls to lead to banks possibly upgrading their forecast for revenues for this year because of spread income we raised estimates on monday for 80% of the banks we cover for 2022 and 2023 because we believe that spread revenues are going to be better we are probably 4% higher for our estimates in 2023. and i think that's the bulk -- part of the bull case reason to own the spread lenders those are regional banks, western alliance has a $13 billion market cap cadence bancorp has a $7 billion

market cap these are the types of stocks that are 10% or 15% cheaper than the average because but are going to have better leverage profiles because of their spread loans. >> what do you down the pike in deal making in 2022? >> as you know, the industry has been consolidating since the middle '80s since they changed the law. when i started in the business, there were 18,000 banks. now their 5,000. that's the natural course. we think it is going to be a stronger year. because, post covid the i environment has changed so much. the banks are not only kieting with each other, but shadow banking industry is at a record level of size. they are competing with non-banks, and competing with fintechs for that reason, banks believe they need to stand up more with scale to compete we think that's going to be a key driver that will allow consolidation to continue. now, there are some regulatory reviews of the sector by the

way, as you know >> right, right. >> i don't think it is going to be the absolute biggest banks boo i think the regional banks are going to look to come together to be able to stands up with these more forceful competitors. i think it is going to continue to happen. also, last year was a big m&a year now that these mergers are closing like cadence bancorp invest rrs auto going to look to see how they are performing a quarter or two after their close. i think that's a signal for how they react to the mergers in the future lastly, do you expect any major changes from the fed on either the regulatory piece, the general environment for bank deals and sort of asset size and that kind of thing what are your expectations there? >> i do. i feel, having done this for a couple decades, i feel like there is a pendulum that swings on the leg laer to fund. there are so many key opening that this administration really has a chance to put their fingerprint on nominees.

there will absolutely be a change you think you will see more -- more in interest consolidation a lot of focus on the big bank concentration. but i have to tell you, four banks in the country have 40% of the market share they are growing faster than the rest of the industry the banking industry as a whole is losing market share to shadow banks and fintechs the idea -- these smaller banks are consolidating to be able to compete with bigger bank so i think there should be a really big robust debate about where the right place is to draw the line. >> sure. >> right now, it seems as if the debate is around $100 billion asset banks and up even though that's not the rule yet. with you we have seen a lot of public discussion about that that's where it is but you think it maybe should be higher? >> i -- previous to that governor brainard specified and said she thought it should be above the $250 billion sievy level and above. she's not the one who i understand who is promoting $100 billion. i think that's more from the

political side of washington nonetheless, informing has been decided on what i do hope is that there is broad debate and discovery before these thresholds are picked because it is not just the banking industry it's the banking industry, the technology industry, and the shadow banking industry. >> absolutely. >> they are all generally competing for the same business. >> lump fintech into all of that as well. tom, we have to leave it there it has been great to have you, thank you for your time. >> thank you, be well. >> tom michaud. come up, buy this, sell that, we are zeroing in. natural gas falling 11% after a 30% surge. what comes next? a i had treer takes his position. heading to break, ok alot the tpg shares, making their the tpg shares, making their debut at the $30 mark.

...so you can stay... one step ahead.

sna welcome back to "power lunch. we want to bringyour attention to snap as well as some media names that are on the move snap shares are down over 7% today on a downgrade by cowen to market perform the firm citing near term turns around ios, apple's operating system changes, as well as tough comparisons. in contrast, traditional media names are bucking the down trend, part of a shift into

value, and also continuing those media company's move higher this year on some m&a expectations. look at discovery shares discovery is up 3%, viacom shares up over 4%, continuing their gains earlier this week on bullish analyst comments about potential m&a deals. comcast shares are up over 1%. and at&t shares are up nearly 2%, while fox shares are up over 2% as well now, there has been another piece of news that's helping comcast and viacom cnbc in particular those two companies negotiated a melt-year deal guaranteeing content for the cable yint and also avoiding blackouts. >> always key for customers. julia, thank you. stocks in the tech and industrial space don't come cheap. in the past year, tech is up 28%, industrials are up 20%, their the focus of today's buy this, sell that segment.

we have stocks picks and pans in two of the sectors where our next guest says stock picking matters. there he is. sarat, it is great to have you here again let's start with the technology sector you are saying buy paypal, sort of a controversial call, and sell affirm. talk to us about this one. >> i always have a bias towards value. if you look at paypal it is down over 50% from its peak the company made a potential acquisition with interest that the street didn't like if you look at the secular growth drivers for paypal they are stronger than ever as we have gone through covid more people are using less cash, more transactions over the web they have got venmo, which we feel is one of their most underutilized in terms of monetization and 50% of this revenue comes from overseas. really you have got a lot of bad

news baked into what i would call a great fintech company that has a huge run ray ahead of it. >> paypal, you think this is an opportunity. the stock is around $184 what about affirm? again it has been a strong performer but stumbled out of the blocks here in 2022. >> yeah, so what's having, you know, when we are getting into kinds the next 12 to 24 months and the focus really is on earnings growth, cash flow, affirm is still trading at 14 times sales. it is an area, kelly, and the secular growth is great, but you are going into -- you know, what affirm does is buy now, pay later. as interest rates rise that's really going to hurt them because they are not even charging interest rates. and you are also getting into a period where over time credit is going to be important. i think as a fintech company that a lot of people got excited about, there is so much competition in the space, paypal is in it they have got other after pay, square, so if you look at it at

14 times staleales and you lookt the competition coming at them, it is going to be difficult. we have seen this before when rates are rising and you look at credit quality, right now everything is perfect. i don't think the market has discounted how bad things could get in this area when you have got a company that's just being paid to grow as opposed to earnings, that could hurt the stock >> oh, all right let's talk about industrials if you don't mind, sarat. i didn't know it was my time to chime in here. let's talk about a couple of the airlines delta and american which is which >> a lot of people talk about what should we play for reopening? we have had fits and starts with different variants if you want to be in this space n transportation, the best place to be in is delta. they have the best management team they took a lot of debt on but they are paying it back. the leverage ratios are coming

on they have the best international routes, transatlantic and also they are more focused on small and medium businesses. those are the ones that are going to do more travel in the future than some of the larger ones if you put it all together, this is the company that people always love to hate, especially the airlines space we love this we think this is the winner, the growth winner out of the airlines >> all right sar at, thank you, always good to see you, sir. >> thank you, sir. >> nice to be with you. ahead on the program, it is all natural gas. we will get an energy trader's take on the extreme price volatility plus an fyi from the irs from work from home. it could have serious implications on your taxes those details and much, much more when "power lunch" returns. when you're looking for answers,

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sfwi welcome back. i'm rahel solomon. here's your cnbc news update at this hour. the founder and leader of the oath keepers militia group has been arrested by the fbi stewart rhodes is charged with seditious conspiracy in connection with the january 6th attack on the capitol. rhodes did actually enter the building but the government says he helped plan the vie license. president biden is now meeting behind closed doors with

senate democrats after arriving on capitol hill about an hour ago. he wants them to ease the filibuster rule that allows the republican minority to block the voting rights legislation. even before he arrived arizona's kristen sinema said she's not on board. and the rule can't be changed without her. the democrats may have trouble bringing any voting bills to the floor this week senator brian schott says he has a breakthrough covid infection he has no symptoms but needs to isolate. if all democrats are not present they will be short of the 50 votes they need to do something. here's body cam video of a miami-dade marine patrol officer working to free a young doll opinion caught in a fishing net. the dolphin struggling, didn't make it easier for the officer but the officer was able to cut the net and as we see in the video, the dolphin swims away. the officer did cut his hand in the process but i am sure the

dolphin is grateful for his help. now for the power movers first up, virgin orbit down %, launching its first commercial satellite since going public next up, kb homes up 16%, earnings beat and a revenue miss but issuing a strong outlook for 2022 check out shares of ford why not? the stock hitting its highest level since -- wow, since 2001 in today's session its mark cap now topping $100 billion for the first time ever. i forget who has it in our stock contest. >> good question. >> which wraps up soon, i think it is the friday before the super bowl, kell snooe that's coming up. that's a huge milestone for ford, $101 billion ahead on "power lunch," two big ceo interviews, first we will dive into the future of the payments space with the ceo of

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welcome back, everybody. 90 minutes left in the trading day. we want to get you caught up on the markets, stocks, bonds, oil,

and those wild swings in natural gas. up very high so far this year. let's begin, though, with bob pisani on the markets as tech has been trading lower throughout the day bob? >> we had a sort of middling day going on nice moves up in banks, energy, some of the cyclical groups. then just about noontime tech started selling off dramatically that's why we are seeing the big decline. both sectors, the mega cap tech, microsofts, apple, nvidia, all the semiconductors, which had good news on taiwan semi selling off in the middle of the day. speculative speck, cathie wood stuff also selling off aggressively shopify, tesla dropped, block, roku, twilio, other stocks in that sector also down as well. elsewhere, though, very good news for bank stocks because we are holding up

that doesn't usually happen. oog going into herbings season banks usually weaken but we are at new highs on many banks. the kbe, the bank etf very high a well a good sign for investors, indicators for bank earnings season meme stocks, gamestop getting hit hard today as well gamestop is around where it was march of 2021. it dropped noticeably in the middle of december to the 130 range but on very heavy volume there is something interesting happening here today it is down, dropping into the 120 levels but the volume is not heavy at all what does it suggest in the middle of december it suggests people wanted to sell now it is down but on very, very light volume this suggests there is not a lot of buying interest sort the opposite. soyou get normal everyday activity and it drifts lower because there is not a lot of

buying this is a change in tone it seems to me based on simple technical analysis looking at gamestop we want to keep an eye on the meme stocks. now we go to the other half of the law firm of pi sanny and santelli stocks are lower, and thenning a key level. rick santelli is tracking the action rick >> absolutely tyler. look at the 24-hour chart of tens drifting lower remember, we had a 30-year bond auction that capped the penny remunding of $110 billion from treasury and remember, it is thursday, which means in a few hours we will learn the size of the fed's balance sheet as it quickly approaches $9 trillion, and the topic is reducing the balance sheet. many times we all forget that they have purchased so many treasuries it makes it really difficult to get that selling pressure to leverage to move

rates. will it be this way forever? no but when it's going to change is tough to predict look at a week to date of tens and you can see how we have slid we are sliding at a time where cpi yesterday and ppi today, two out of the three year over years were new records, the third one equaled a record and yet the market seems somewhat oblivious to that look at a one-year chart of tense. what is interesting about this is as a technician it looks like it is rolling over a bit if you look at bunds week to date, the other date, tuesday, they came within one basis point of zero. they have been negative for so long i thought that was very telling. finally the dollar index here's a three-year cart looks like a knife dropping in air. >> rick, thank you very much. oil is closing for the day let's go to pippa stevens as once again oil prices are driven

by a tug-of-war between the factors of supply and demand. >> oil strength over the last few days taking a little bit of a breather today prices moved between gains and losses throughout the session before ending here in the red. wti is down 1% at 81 $83. brent crude is at $4.19 for a loss of half of 1% now, analysts adding opec and its allies are unable to hit output targets meanwhile, demand is strong and so that's keeping prices elevate asked will continue to do so not a quiet day for nat gas. the roller coaster ride tinning. futures are down 11.5% right now giving back much of yesterday's 14% gain the energy sector though is in the green with a number of stocks hitting new multiyear highs. including conoco phillips custom is at the high going back to july of 2014

haliburton and slum better jay also up at record highs. >> nat gas is down big today after jumping 14% yesterday, up something like 30% year the date we are joined by bill perkins of ceo of sky lumbar. you don't need a weather man to know it is going to be cold this winter are we seeing these major swings because traders are building hypotheses on how cold it's going to get >> yeah, yesterday we saw a cold shot come in on the models and people are in the mode of buy first, ask questions later they don't want a repeat of what happened also year where we had astronomical prices and loss of life in texas with the cold shot after the close yesterday people started asking questions not only how cold is it but where it is going to be cold matters. we don't expect -- and it is highly unlikely we will see that type of weather, and thus prices gave up most of their gains from yesterday. >> you know, you had a year last

year where natural gas rose for most of the year it was up 47%, the contract in 2021 but in the fourth quarter, it melted away very, very quickly what kind of year should we expect >> well, i think right now prices need to normalize and equilibrate. stocks are healthy but on a go-forward basis there seems to be asystem metric risk to the upside. we have to refill through the winter that's where the rubber meets the road people are very cautious we have had some scaling back in capital discipline by the producers so that supply is -- supply and demand are finally balanced and any kind of disruption could lead to fireworks. >> in the united states, is there ample supply to heat homes and do business? >> under 99% of weather scenarios there is ample supply to meet all the weather

scenarios. but mother nature is the ultimate fundamental she has tricks up her sleeve and people are concerned >> no kidding there, man, that's the truth. you said now supply and demand are referee in balance does that suggest that prices are going to sort of find this as an equilibrium spot for the next few weeks or maybe months >> it might. we have -- you know, this is a goldilocks scenario. and as we know in commodities, that doesn't remain for too long so any kind of disruption or increase in demand when covid finally goes away, or if we have any kind of disruptions in supply, freeze offs or extended equipment outages, that could change very quickly. so we are at a price level where there doesn't seem to be that much downside but a very large upside anyone that in order to shut off exports to europe, we need to go to a seriously high price. >> my heating bill was higher last month i can't wait to receive the

latest one bill perkins, thank you very much breaking news from the supreme court now. kayla tausche here with the story. kayla? >> kelly a decision just handed down from the supreme court blocks the white house's federal vaccine or test mandate for employers with more than 100 workers. in the decision, the supreme court writes, this is no ordinary use of federal power, the majority saying it is instead a significant enc encroachment into the lives and health of a vast number of employees. now, the case was heard just last fry in an emergency session after several religious groups had asked the supreme court to hear the case after an appeals court had ruled that the mandate could go forward certainly, it is a significant blow for the biden administration, which had argued this mandate would help the united states get beyond the pandemic and increase vaccination rates among those holdouts who have yet to go to

be vaccinated or vaccinated fully. the mandate was set to go into effect february 9th. but it will not go forward the supreme court did allow the biden administration's vaccination mandate for health care workers to go forward cnbc and just capital releasing their list of the most just companies in america. up next we will speak to the ceo of mastercard, ranked number 13 on the list. how is the company supporting ri t a csursndonme dunghese tough times dunghese tough times that's next. your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

welcome back quantum escapes and influence energy shares split after announcing a partnership to develop a lithium-based battery solution quantumscape counts volkswagen and two other automakers as partners in its push to create longer lasting battery technology now with this push into lithium battery storage, is is this a play on more than just the electric vehicle space

joining us, jagdeep singh, ceo of quantumscape. congratulations on this partnership with influence it sounds exciting it is going to drive the companies towards solid state lithium batteries, which is an advancement. how quickly do you expect to be able to bring these to market? i have heard that the time line was '24-'25. does this advance that >> that's a great question yeah, it is very exciting. the reason for this development really is that as big as the automotive sector is, which is by our estimation offer on the order of half a billion dollars a year, the stationery storage market is on that same order of magnitude, hundreds of billions of dollars is what the analysts are forecasting by the end of the decade it really doubles the opportunity for us in terms of the total addressable market and of course both companies are focused on decarbonization of emissions.

that's an aligned mission both companies have relative to timing we intend to provide influence with cells from our qs zero line next year, 2023 and the other times remain as we said before because we have to build factories for the batteries we are working on today as well as the stationery storage market the 24-25 time frame doesn't change it expands the total addressable market. >> the battery sec following is a competitive, crowded area. your stock has been hit hard presumably because of all the competitions what's your edge what's the next catalyst for your company and its stock as you see it >> yeah, so, conventional battery technology is relatively, you know, undifferentiated if you look at the standard lithium ion

technology our approach is different. it is a solid state battery based on an anode made of pure metallic lithium the lithium is the most co condensed ion you can get that solid state approach gives you critical advantages that are important both through automotive and as you have seen in this announcement for stationery storage as well those benefits include higher energy density, which means more energy stored in a finite amount of space or finite mass. it gives you faster charging capabilities, more power, better economics, better safety all of those benefits are driving interest in stationery storage. obviously we are glad to works with influence which in some ways invented the category of stationery storage for grid. >> obviously, for the grid storage is a huge, huge advancement. the quicker it can be deployed

at scale the quicker it will solve all the problems we have with current intermittent renewable power. on the automotive side of this, do you want to get cost competitive so that companies like tesla will ultimately be using our battery technology our belief is in a structural level a solid state approach like ours that does away with the anode layer entirely has a cost advantage because we don't have the third layer normal batteries have a cathode an anode, and a lithium layer. our lithium layer incorporates the anode layer. ultimately it will be, once we get into full production scale

we expect and believe that the economics of a solid state lithium metal anode-free approach are going to be more attractive than lithium ion. >> let's look down the road ten, 15, 20 years for this kind of product, this solid state lithium battery, who will its most prominent use case be will it be for storage for the grid will it be for storage for industrial applications? will it be for storage in the home where i have a solar collector on my roof the power generated there goes down into my battery from you guys and it is there for me use all day, all night what's the main use case >> the short answer is all the above. basically the benefits that we are offering are in some ways application agnostic we are talking about higher density, hire power density, better charge, better cycle life those are characteristics

appreciated by all the applications you mentioned we have chosen automotive to start. we zant want to be a jack-of-all-trades and master of none we wanted a base on which to expand in the last months we have announced three oem agreements, volkswagen and two other players, we established that base now we feel like we are ready to venture beyond the automotive. therefore this partnership. >> we have to leave it there jagdeep, i have a first and goal we will be talking about after the break, the ceo of mastercard we will talk competition, the future of payments, and being named to the just 100 list don't go anywhere. if you wake up think about t

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welcome back visa and mastercard were some of the hottest names of the 2010s mastercard up. that's about 7 times the s&p gained but last year was a struggle the stock basically flat as the broader markets gained 20% the pandemic and the kompcompeto

weighing on visa the stock on the comeback trail up 9% in the past month. joining us to talk about the company ahead of the competition is michael meback. thank you for joining us we'll get to that but first here's where mastercard ranked on the just 100 list 13th overall second in the industry group described as financial support services i can imagine you're pleased to see the results. >> right we are pleased to see the results. being recognized by just capital is a second year in a row. i think what is being recognized is the close connection between a pretty clear strategy, consistent performance on one hand and then catering to the topics that matter to our stakeholders, not just shareholders growth protecting the environment responsible use of technology

and that is a technology company that's particularly important. the team is thrilled about the recognition and will drive it forward. >> what an insane time to have to take over with everything that's going on. one more quick question. what is the philosophy on work from home? what should we expect from mastercard >> we have taken what our employees told us is they learned to appreciate working from home. they learned to appreciate a lot more flexibility so it is coming through in our renewed thinking about ways of working. so clearly a hybrid model is where things are going for us at least. hybrid and coming to the office to collaborate and not sit at the desk and write emails. we sprinkled in incentives like work four weeks from anywhere in

the world. it is well recognized by the teams. >> very interesting. such a global company. let's talk about this year where analysts are excited that the end of the pandemic or whatever you want to call it -- >> hopefully. >> right will help with cross border payments what are you seeing in this omicron? can you tell us how the start of the year is going? are trends holding up well or is activity taking a hit? >> we had a strong holiday season first thing to call out. the spending pulse showed we had an increase over 8.5% in holiday spending over the previous year. online sales are strong at 11% of an increase particular segments really very looking very, very strongly. jewelry, apparel we are coming with the momentum of the holiday season into the new year and trends continue to

look relatively positive looking into 2020 we see benefit from akul lated savings and a push to digital. consumers show signs of wanting to do more online in digital banking and online shopping. >> this is a big focus of yours. a reason why analysts sometimes prefer mastercard over visa is they feel that you are comfortable with the evolution you face competition visa is pushed back from amazon on the fees and crypto is a kind of alternative threat out there. how's mastercard going to navigate the competition in the payment space? >> our starting point is the consumer what is the consumer looking for?

buy now pay later is another way to pay and advances the ecosystem. it is replacing some cash out there and more dated technologies we like that we have been out with an installment solution since 2014. as of september last year with the way we look at this is there is bilateral arrangements that buy now later pure plays have. this is the power of the network with 80 million hmerchants and how about bring the buy now pay later functionality as parent of the network proposition? we can enable the merchants. i look at it not as a threat but a growth opportunity. >> that's very interesting as so many incumbents do they take the technology and say, great, we can do that, too thank you for your time. we hope you'll come back soon.

>> thank you, kelly. take care. >> the ceo of mastercard ty still to come, an update on work from home forou yr tax form a mobile hotspot. we cut to downtown, your sales rep lisa has to send some files, like asap! so basically i can pick the right plan for each employee. yeah i should've just led with that. with at&t business. you can pick the best plan for each employee and get the best deals on every smart phone. ♪ ♪ wow, we're crunching tons of polygons here!

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our promise to deliver the food you love on time, and give you the lowest price, or you'll get $5 off your next order. for millions of americans who spent the year working from home some think that new chair or computer might be tax deductible robert frank is joining us with the answers.

robert >> kelly, accountants say this is the number one question this tax season why can you write off the home office. the answer is probably not that's because taxpayers that work for a company and expect a w-2 paycheck cannot deduct the home office or expenses because the 2017 tax changes suspended that deduct for all employees until 2025 self employed workers, partnerships can take the deduction. there's two rules. the taxpayer needs to use it exclusively for business and the principle place of business. it's all done by ratio 1/10th of the home you can't write that beautiful new kimpen, tyler. for those self employed and work from home you can do that. >> it was nice until that

lasted write off the computer all of that. very nice. thank you so much for being with us even though you brought us disappointing news that's okay. everybody else, we'll get it over it, too thank you for watching "power lunch." >> "closing bell" starts right now. welcome to "closing bell," je everyone i'm wilfred frost at new york stock exchange the nasdaq under the pressure down more than 1.5% heading boo the final hour of trade. >> welcome i'm sara eisen let's look at what's driving the action tech falling hard again after strong start to the week fresh data once again raising concerns about higher inflation. producer price index jumping from last year though the monthly increase below estimates. airlines have a strong session afte