si sized balance, i think there could be more in the tank. i'm going to stick around. >> gold, it takes a lot for me to say gold. i think there's more currency volatility to come. >> the "exchange" starts now i bet they're going to talk about twitter. thanks for watching. thanks, frank. we continue with the big story of the day elon musk unable to hit the edit button he's going to end up, it looks like, getting twitter at 54.20 a share despite his best efforts shares halted pending official news, jumping as much as 15% earlier. we will bring you all the latest stocks rallying on hopes the fed is going to pivot. one out of our guests is bullish overall. be cautious with your cash, he tells us why and what he's buying and the first big test for section 230. the case in front of the supreme

court that could change everything for the social media giants and apparently elon musk. we begin with today's markets and dom chu with the numbers. >> it is technology that has been at the center of so much of the downside and upside volatility case in point today, after a quote unquote under performs day yesterday, the nasdaq did under perform the other indices. up 3% for the composite index. 11,130, the s&p 500, 3775. similar percentage move for the dow industrials and now for the s&p 500, 3,775, brings the two day rally north of 5% in two days is this a bottoming place, that's a big debate on weall street one of the things driving the action, valuations, multiples, what's driving technology. interest rates are a part of that story believe it or not, we have now

ticked slightly higher off the session lows for the ten-year treasury note yield, currently a hair below 3.62% in the last couple of weeks, we saw north of 4%. we're 40 basis points, .4% where we were just a little while back, so is this interest rate story part of the reason why markets are a little bit more bullish, keep in mind the context, we have come a long way higher in terms of interest rates overall. check out these names, roughly 40 plus stocks in the s&p 500 that are mega caps that have now rallied by at least 5% in two days so market beating mega cap names among them amazon.com, salesforce, and advanced micro devices each of these three names among the 40-some that have gained 5%. these three technology and tech adjacent names have rallied 9% in two days. i'll show you the charts here, a

lot of downsize moves. bottom fishing or short covering i'll send it back it you. >> thank you. now we're going to get back to the story of the afternoon, twitter shares still halted, pending news that elon musk will proceed with the deal that he didn't want to do to buy twitter at 54.20 a share he wanted it before he didn't want it. david faber, you've got the details. have we ever seen a case of buyer's remorse like this. >> we have never seen anything quite like this period at least in the 30-plus years that i have been covering mergers and acquisitions, maybe even longer, 35 sort of nothing like it. when you're dealing with musk, as you well know, john, you just got to throw out history because it's always going to be weird. here's what we can tell you at this moment. the stocks halted, by the way, news pending last night sources are telling me a letter was sent from mr. musk in which he basically sent a letter to the board of twitter and to the court saying i'm

going to buy the company for 54.20. you can stop the litigation and i'll move forward with our original deal to buy the company for 54.20. a deal that was announced back, what was it, april 25th, i think is when twitter agreed to that number this after if you recall, and you were sort of alluding to it, john, he built up his position in it, then he was going to be on the board decided not to be on the board put in a poison pill, reached an agreement, and not soon after got buyers remorse, started tweeting, some poop emojis, and june the two sides realized or twitter did that we're going to have to sue this guy at some point. took a while we're supposed to be in delaware court beginning on the 17th of this month to figure it all out. things had not been going musk's way in court at least, and from what i hear, a number of the

depositions taking place, he's supposed to be deposed this week, john unclear what was going to happen during the deposition or whether it's connected to buy the company for 54 p.20. it's not hard to make a connection between the timing of the events that said, we're waiting for the letter itself to see the light of day in court from mr. musk or twitter to release the letter, and we are waiting for news from twitter right now. that news not likely to be we're done, it's all over. we've agreed, we're closing on this date. more likely to be what i'm sharing, we received this letter from mr. musk and we're waiting for the court to sign off on things to make sure if we drop the litigation, he will therefore move forward with the deal, and as i have been indicating earlier in earlier reporting, john, he could close this thing very quickly at the least, 15 days, or at the most, i should say, because that's the

marketing period morgan stanley has and the contract that's allowed if it wants to exercise that if they were to waive that, they've gotten all the other approvals, regulatory, shareholders, so you know, it could be a matter of days if morgan stanley waives that marketing period. >> we don't have the final box score on this situation that's an important caveat here strange things can and probably will still happen, yet twitter's management and its board have undergone withering criticism over the years, it appears to me if this end the way right now it appears it will, twitter's board appears masterfully. people are saying let him ouch the deal, you can't make him buy a company he doesn't want to buy. brett taylor, co-ceo of salesforce, chair of the board, stuck his guns, apparently the way they negotiated this has

held up to the agree where the richest man in the world doesn't want to fight in court. >> that would seem to be the case, and i agree with you the board did a good job for its shareholders and signing up a deal at 54.20, which as you and i both know is far above any level this stock would see if it were trading simply on fundamentals and they have been steadfast, and i've reported on this. steadfast in their belief that under the contract there was nothing that mr. musk was going to be able to prove that would let him exit the deal because, remember, he needed to prove fraud and that that fraud instituted a material adverse effect or change that allowed him to exit the deal given the arguments that have been made thus far in court, the back and forth, and things we're able to see and hear during open court hearings, it seemed clear to many people and many observers that mr. musk's side

was losing this case, john that doesn't mean, you know, what would have happened inside the courtroom. who knows, but it appears that perhaps because he didn't want to be deposed, perhaps because he simply knew he had a losing case at this point that he is now prepared, not even to settle many of us have been talking about the possibility of settlement, and many market participants have been expecting prior to the beginning of the trial you might get a settlement this is not a settlement this is just him saying, all right, 54.20 it is now, 31 plus billion of my own money, you know, he's raised money from investors like larry ellison as well. i'll cut that down 25 billion of my money, and 13 billion of debt from morgan stanley, and we're done. thanks for your time. >> hold on i'm going to connect dots between mark zuckerberg, kim kardashian and elon musk, and my question connecting all of those is this, there have been people

who have tried to hold mark zuckerberg personally liable for things that facebook has done policy wise, and we just seen over the past couple of days, several hours, that kim kardashian has gotten into trouble with regulators over what she has posted about cryptocurrency on instagram, and so given that elon musk hirmsel is a value figure, not just in the twitter saga but tesla, spacex, other ventures, does owning twitter open elon musk up to personal liability that shareholders should think about from here. maybe it's not just about this transaction, and how much he has available funds-wise, but is this sort of a new era for musk-connected companies >> i think it has to be. you have to consider that it will be. i mean, john, you know, in that brief period where he agreed to the deal and didn't seem to have remorse about paying the price, we talked a lot about this, imag

imagining twitter under musk, what that would mean in a variety of ways. certainly something you're raising is something people to to be aware of when it comes to mr. musk now, tesla shares i think mother nature weakened a bit since we began relaying this news that said, he has largely sold the stock needed to finance or pay for his portion of the equity that he's step up for so wouldn't appear that there's going to have to be near term pressure although i want to go back and check my notes and math and make sure and remember all the different sales that he made, john. you may have a better memory than i do. it's going to be a new era for twitter and for musk, who is using twitter's platform vigorously last night as we know weighing in with his thoughts about russia and ukraine apparently at the same time that he was sending letters to the court and to twitter's board saying, all right, i'll buy it

for 54.20 as we agreed to. the man doesn't appear to sleep much. >> or shy away from starting fights with anyone whether it be board members of potential companies that he wants to acquire or doesn't or leaders of countries at war. david fraber, thank you. editor and chief at the verge, cnbc contributor, eli, there were lots of people who were saying, oh, elon musk is a genius, he's going to figure this out is this him figuring it out? >> i don't know. you know what i'm really confused about is there's no price concession here. right, he's not saying, okay, 52 a share. give me something. in the risk of going to trial and losing, he's caving at 54.20. i'm waiting to see if there's another concession he's asking for to justice that price. it's bonkers that he hasn't proposed -- 54 plat, give me a

20% discount on a share price. it is musk, as david said, you can never know what's going on in his brain it's not a settlement offer. it's just caving and we did see last week, you know, his bot argument was falling apart left and right he did not have the numbers, the data to back it out. why do all of this work to try to get out of it if you're not even going to get a discount. >> since the deal first got floated. the stock market has changed dramatically, the global economy has chajd dramatically, the geopolitical reality has changed dramatically, and now we're getting ready to head into a very serious election cycle, both midterms coming in just a couple weeks, and then the big general election cycle twitter often plays big into that if elon musk ends up with it, which he could within days, how

does that change the landscape >> i think we're about to learn in a very public away from elon himself that content moderation and speech regulation is a lot more complicated, especially when all of the politicians are looking at you than he makes it seem on twitter. the texas social media law is almost impossible for platforms to comply with if it goes into effect, i'm not sure these platforms with actually operate in texas. just all the reporting about it so far, all the statements on the platform say okay, if you want a viewpoint neutral content, we have to let horrible things go online that are otherwise illegal. and we won't be able to moderate them that is a full on distraction that might result in platforms not operating in the state of texas. that's a big deal because tesla has a huge investment in texas he lives in texas. that's just the united states. that's not china or russia or

germany or any of the other markets he wants to play in. >> so finally, then, elon musk has seen tesla stock hold up pretty well this all of the stock market turmoil he apparently, his own net worth, he's taking a hit, buying this stack, that his prospects aren't nearly what he first offered to buy what is the risk that you see, is there, to any of elon musk's assets that he's leading that investors have stakes in, if he's personally liable for what happens on a social media platform, perhaps he needs to raise some more cash he's spending his emergency fund on twitter . >> i think the personal liability issue is going to be complicated. it's complicated by the regulatory structures around the world. now there's one guy who's definitely in charge, and twitter has done a pretty good job at deflecting that pressure

away from dorsey himself, away from even progress himself, we have a team, we have processes in place you have to deflect the pressure facebook built an entire supreme court address. it's too much for one person to take if you have one person that the chinese government can pressure to moderate twitter. or for the german government tesla wants to compete in g germany. they have different speech laws. fights with a german government has a direct impact on what the german government might be able to do to tesla that's in the west i think this is a real danger moment for all of these other companies because twitter is very visible and the pressure they can place on the other companies to get what they want out of twitter is real. >> yeah. we like to, not that we like to, but we often end occupy using that bad baseball metaphor about

how it's early innings for variation technologies still seems to be early innings for the story of elon musk, twitter, and social media. eli patel, thank you. we will be keeping an eye on the twitter story. let's get back to the markets which are soaring. our next guest says the outlook is bright for long-term investors, you need to be capital with the capital in the near term. no billion dollar buys, i guess. let's bring in mark avaloni. how much attention should investors pay to the rally today, is it about the rally and risk on or the bear market sort of fade that we have seen over the last couple weeks. what is discipline and smart investing look like here >> it looks like you take what you can in a bear market, but

don't get out over your skis, happy days are here again, and it's straight up it's a bear market rally it's reassuring. i like to see the nasdaq, qqqs are up nicely, even though tesla has struggled for two days that's one of the biggest components you look for positives in the up trend but to think of the structural problems of higher inflation, an aggressive fed and the risk of earnings not hitting their target is behind us i think is a bit premature. >> mark, the argument not too long ago oh, my goodness if you're in cash, the value of that is crumbling around you you got to put it to work in stocks, and yet you had if sat on your cash, suddenly you can buy a lot more stocks. strategically, not saying that people should be all one way or all the other, what is a smash cash strategy for the retail investor right now >> i get that a lot, and for short-term money, cash was

always appropriate, and still is it's a question of how far out do you want to go. with the two-year treasury in the 4% range, if that satisfies your risk, reward, and target rate of return, there's nothing wrong with treasuries in a diversified mix. you could have an opportunity cost if the market takes off and you're still in the short-term treasuries, you're going to miss out. when stocks turn, they turn fast that's the real risk of being in treasuries it's not the treasury itself, it's the opportunity cost, if and when this stock market turns. >> all right let's get your picks here. i believe you like chub, met life, prudential on the value side on the growth side, microsoft and apple still? >> well, on the value side, we like broader financials. because there's a risk of recession, and it's more of a modest one if we have one.

insurers have less credit risks, selling at higher multiples, but very strong dividends and internally insurers have done a lot with their product lines to deliver investor returns and we think the higher yields and the term structure of interest rates is going to benefit them, especially with the bond carnage hopefully in the rear view mirror mega cap tech is something we have liked all along strong cash flow, strong balance sheets and if you're selective in that space, you pick the winners, avoid names of lower quality on the tech side, and we think longer term investors will be rewarded. mark, thank you. >> good to be here. oil prices higher ahead of tomorrow's opec plus meeting, where they are expected to discuss supply cuts. for more on that, opec headq headquarters in vienna, austria. brian sullivan is live where

opec, again, is headquartered. give us the set up >> we don't have twitter but trillions of dollars of gdp if opec goes ahead and cuts output by 500 barrels a day to new headlines of 2 million barrels a day. the analyst notes and estimates have been all over the map we're talking about hundreds of billions or trillions of dollars potentially at risk here depend ongoing what happens the meeting in person. we thought it was going to be virtual. suddenly they said, do it in person everybody booked a flight, got over here to vienna. we expect something big. it may not be oil. i'll get to that in a second that meeting tomorrow at the headquarters also, if they do the cut, john, what does the united states do what is the u.s. reaction going to be? i can personal tell you that the white house is not happy with the meeting. we have seen congress people say maybe we need to cut off arms

sales to saudi arabia. the report suggests russia may be more to blame if we get that. what will the u.s. reaction be, and speaking of russia, what is the russia factor. we are not 100% that the russian delegation led by alexander novak, still an open ended question the expectation is they will be, but wouldn't that be kind of an odd geopolitical scene here in austria. prices for everybody are up. a lot of people blame russia and here into town comes the russian delegation a lot of kwees there there's always talk that saudi arabia may extend what they call their declaration of cooperation, a deal they made in 2016, further tying russia and opec together. production cuts, u.s. reaction, higher oil prices, global

geopolitics, it's all happening, vienna, austria, tomorrow, in person at the opec headquarters. >> let me focus on europe as a way of looking at what's coming for the global economy we just are starting q4 this week russia has been using energy supply as a strategic lever in its effort to get the west to back off and have its way in ukraine, and now what's being discussed at opec is energy supply, and winter is right around the corner. how does that factor in to the unstable tenuous situation that europe's economy finds itself in and the potential ripple effects in q4 and beyond >> just creates kind of an odd geopolitical scene like i was getting into again, you talk to anybody here. we talked to the hotel people, roy who was working with us, my energy, my heating bills, either

in the summer or winter, they have doubled or more than doubled. these are working class folks. the government had to issue a stipend, so some of the people on the lower income scale can afford to heat their homes we chatted with somebody today from germany, a tourist who said their landlord had cut off their heat, and basically said put on a sweater because we can't afford to heat the home. now we're talking of course about the price of oil, if we get this sizable cut, 500,000, to 2 million barrels a day the price of oil might be defended, meaning go up. of course it's not just oil. it is natural gas as well. thankfully energy prices have come down a little bit we are at 164 per megawatt hour today. well off the highs and well above where it was this is not, john, a monthly story. this is going to play out, if it continues, unless something changes with the war, with vladimir putin, if you know what i'm talking about, unless something dramatic changes

this will play out for a year. opec coming to town, and possibly doing a major oil production cut i want to leave it with this if we get a million barrels a day. that doesn't mean a million barrels are coming off the market so maybe half to 60% would come off. the question will be, does the u.s. release more from the spr, and can u.s. producers produce more to make up for any gap, the first question, maybe. the second question, unlikely, it's going to be a busy day. probably the lo of security. it's going to be a weird meeting. could be a big day, all day long, morning tonight. >> either way, european government subsidizing opec company profits, country profits i should say, war in ukraine, brian sullivan, thank you. the supreme court taking up a controversial issue in the tech world should social media companies

have legal immunity from the content posted by users or owners we'll debate. a deep dive into the meta verse, should the retail industry stick to shopping in the real world and a quick check on twitter that stock still halted as david faber reports elon musk is proposing going through with the deal after all at its original 54.20 price. "the exchange" is back after this >> announcer: this is "the exchange" on cnbc.

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welcome back to "the exchange" online shopping, as retailers look to moouchve their brands to the metaverse. gucci, gap, have offered vr shopping experiences on roblox and fortnite retailers want to be a part of it joining is dana tellsey, chief resource adviser i got to start off asking, we have seen a big drop and interest in the value of metaverse real estate, interest in nfts. what has to happen in metaverse

shopping so it doesn't suffer the same fate? >> i think one of the elements of metaverse shopping, and first of all, thank you very much for having me, is the amount of dollars that brands and retailers are contributing to the platform i think everyones a piece of the gen z and millennial consumer who account for 43% of the population i think we're only going to see more of these brands devote more dollars. it's very much in the early phase. whatever consumer version is happening, they want to be there. >> do there need to be connections to the real world and physical goods i mean, my kids, they spend time in mine craft, they don't do roblox, they have developed buyer's remorse, they say i can't believe i spent that much on v bucks, now they want clothes. will smart retailers make the connections, or is the future in making people feel like they're valuing goods alone.

>> i think the inner oper about of having a physical store or meta brands, the best brands will be able to adopt the connectivity so they have a physical footprint that also uses social media and the metaverse is almost advertisement tools in order to gain awareness building your block of customers is key to the metaverse in the future and key to the verse of brands. >> here's another thing i worry about, and it has to do with costs. is the future a metaverse or a multiverse, is there going to be one environment where the brands can focus on building one beautiful version of that bag or that shoe and it transfers across roblox and other games or are you going to have to figure out which games to make assets for, and are you going to have to have engineers and artists doing customizations for all of these platforms because that's a big cost issue, isn't it >> that would be a huge cost

issue. i think it's a multiverse, i like the way you frame that, rather than a meta veverse. all of the players, estee lauder, gucci, are experimenting to see what works. we're going to see connectivity in the multiverse come to the forefront over the next few years. >> who benefits now, whether it's tool makers whether it's, you know, marketing focused companies, who are these retailers going to have to go to at this stage to prepare for whatever the future holds? >> i think frankly when you look at who retailers are hiring, who brands are hiring, it basically is marketing technology experts, that, i think, is what's dgoing to differentiate it's not only differentiating for the metaverse but hole list bringing the brand to the metaverse or multiverse. we'll see if app and adobe

and the likes get a piece of that money dana telsey, thank you. still ahead, rates are on the rise stocks are still well in the red overall. that's having a big impact on luxury real estate not just in the metaverse. we'll have more on real universe luxury real estate when the exchange comes back. about exciting medicare advantage plans that can provide broad coverage and still may save you money on monthly premiums and prescription drugs. with original medicare you are covered for hospital stays and doctor office visits but you have to meet a deductible for each, and then you're still responsible for 20% of the cost. next, let's look at a medicare supplement plan. as you can see, they cover the same things as original medicare, and they also cover your medicare deductibles and coinsurance. but they often have higher monthly premiums and no prescription drug

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cnbc elon musk is proposing to close the deal to buy the company after all at the original price of 54.20 a share. that stock still halted with news pending we continue to watch for when that news comes across but for now, to tyler mathisen for a cnbc news update with i presume other news. we've got other news, john, thanks very much delays in unlocking gates contributing to the disaster in an indonesian soccer stadium, 131 people died. this according indonesia's national soccer association. police, however, insist the gates were open but were too narrow to accommodate the crush of people trying to escape, trying to escape among other things tear gas fired by those police back home in central florida, a 21 year sheriffs deputy was fatally shot trying to serve an arrest warrant the person being served failed to appear in court to face meth

charges. and at the supreme court, conservatives gave little indication of their views on a key voting rights case from alabama. at issue is a republican drawn electoral map that critics say concentrated black voters into a single district. liberal justice elena kagan said the decision was a slam dunk on the court's precedent. on the news of shep smith, a block buster allegation against republican candidate herschel walker of georgia. walker says it's a big lie walker's son says his father is the liars. we'll sort it out tonight at 7:00 eastern meantime, john, back to you. >> thank you coming up, the supreme court taking up section 230 and the outcome could have big implications for tech. a look at what's at stake next lily! welcome to our third bark-ery.

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welcome back to "the exchange," let's talk about section 230, on the books for 25 years, with the proliferation of

social media and misinformation, it has been seen as increasingly controversial. the rule basically protects web sites and services from lawsuits stemming from user or third party content, essentially if a person says something bad about you on social media, you can sue the person who wrote the post but not the site that posted it. this report has decided it's time to look at just how fair that is. eamon javers has the details >> this case is all about 23-year-old noemi gonzalez, one of 130 people killed in paris during an isis terrorist attack in 2015. her family is arguing in court that you tube helped to spread isis's violent messages because its algorithm suggested extreme content based on previous videos they had watched want the family wants to sue you tube owned by google there's one thing that could stand in the way, section 230 of the decency act, which says internet companies are not liable for content posted on

their platforms by third party users. that same law has come under fire in washington and around the country from conservatives who say social media companies are squelching right wing content, and liberals who say the social media companies are doing the opposite, fomenting right wing messages. supreme court justice clarence thomas has been critical of section 230, and it's not clear how the 6-3 conservative super majority on the court will impact this case any ruling striking down the liability protection could call into question the fundamental economics of posting user generated content. which is why the lot of folks are going to be watching this one closely. bear in mind, the court is not expected to actually decide the case for months. there's still a long way to go here before we get to any kind of decision. this is a court that's been willing to sweep aside precedent. >> eamon javers, so, what is the right move here, what's at

stake. should social media companies be held liable for user content or not. joining me now to discuss, michael smith, professor of information technology and marketing at carnegie mellon university michael, this seems to be part and parcel of a larger rethinking of the original idea of the open internet this idea, oh, well, you know, i'll look cookies follow me around, and i'll get advertised to that means i get information for free, and well, you know, sites can post stuff, that's going to lead to open debate which is going to make society better or not, right? >> exactly i think one of the things we need to recognize with section 230 is what we're trying to do is balance the needs of platforms to not be held immediately responsible for what gets posted to their platform, and also provide platforms with the proper incentives to police their site against known harmful content. the question is whether we got that balance right in 1996 and i think you could make a very good

argument that we might want to rebalance that. >> what does rebalancing look like, perhaps short of just getting rid of section 230 all together if that happens, certain services just won't be able to operate without the risk of massive crippling lawsuits >> yeah, i don't know of anyone seriously suggesting we get rid of section 230 outright. i think the question on the table is whether we want to provide stronger incentives for platforms to police their sites. the one that i think of most is a site like back page, which was a site that allowed people to advertise commercial sexual transactions the senate investigated back page in 2017, and if you read their investigation, i think you come away with the very clear impression that back page knew children were being sold for sex on their site. back page did almost nothing effectively to stop the sale of children for sex on their site,

and the reason they did almost nothing is because they faced no legal liability, and selling children for sex was a profitable part of their business i think we as a society might want to question whether that's a good idea. >> for sure. michael smith with carnegie mellon, thank you. upnext, twitter shares still halted for news pending. sources telling cnbc elon musk is now proposing to close the deal at his original price after months of trying to get out of that deal. so whyow n well, we'll try to answer that after this quick break

- oh, the stock market is doing that fun thing again. news from the future: you're going to live through that about 10 more times! (laughs) no stress. i just discovered yieldstreet. they vet investments that don't ride the stock market rollercoaster. - [narrator] yieldstreet: private market investing. welcome back, the deal is on, maybe. it looks that way at the moment after much back and forth since his original offer in april, sources telling cnbc elon musk is proposing to close his buyout of twitter at the original price

of 54.20 a share so why now let's bring in julia boorstin for some answers could have saved us a whole lot of trouble by just going through it in the first place. >> well, today's news comes less than two weeks before the twitter musk trial was set to start on the 17th, and the fact that musk is capitulating now and not even trying to negotiate for a discount speaks to a couple of key factors around timing first, those texts between musk and his friends and investors that were revealed as part of a document discovery before the trial, not only did musk indicate in those tweets that he was aware that twitter had bot issues that he would need to address, but he also didn't seem to be working constructively with twitter's management, particularly ceo, and the whistleblower levied tough

criticisms of security his allegations did not support musk's issues with twitter's bots, this move comes ahead of musk's deposition that was set for this thursday and friday it seems based on the timing he didn't want to go through with that part of the legal proceeding we have reached out to twitter for comment. we haven't heard back yet, but "the washington post" is reporting that twitter is considering the proposal but won't act for another day, citing a source that says because of distrust on both sides, they're questioning whether the letter from musk could be a legal maneuvering john, who knows what's going to happen next, but certainly interesting so close to the trial. >> yeah, i do not know i am not one who knows let's bring in, thank you, julia, casey newton, editor of platform, cnbc contributor, see if he knows. casey, i know you don't know either, but what does this tell us about -- because i'm trying to make this investor relevant here, betting on billionaires

because there are people along the process tweeting at me, elon musk he's a genius, he's got this all figured out he's playing them like a poker hand, and elon musk always wins. what happened? >> well, look, you read the discovery for yourself, and what you see is that at almost no part of the process did elon seem engaged with the details. we have example after example of elon trying to renegotiate the deal and ask basic questions about it after he had signed a deal to buy the company, so in some ways it's not surprising that after his lawyers would sit him down and explain what he was about to go through at this trial that once again he had a change of heart. >> i wonder, though, tell me what you think about this idea, some of these very smart, very technically capable people have much more to spend than the investors at home and a lot less to lose. >> well, that's exactly right, you know even if this deal went

catastrophically for elon, he's going to be eating well for the rest of his life that is what has made his acquisition of twitter a little bit scary, the sense that he wasn't personally invested in how twitter goes as say the average employee or even many of its executives, so that's, you n why i think a lot of folks have been concerned about what might happen if he actually went through with this. >> well, as bravo, our sister network likes to say, watch what happens. but any impact you see on tesla shares going forward i've been asking people for perspective on elon's personal liability, if he ends up owning twitter. >> you know, it is a good question, and i do think we're going to have to see it play out. i think, you know, tesla has obviously lost a lot of value this year. investors seem to be a little bit more patient with it than they have been with twitter. but, i mean, look, as elon introduces more and more chaos into his finances, there may be a moment when some tesla

investors get that up. >> casey newton, author of "the platformer" newsletter on substack, subscribe to it. casey, thank you >> thanks, jon. still ahead, when it comes to luxury real estate, sentiment matters, but not necessarily about the housing market those details are coming up. going to live through that about 10 more times! (laughs) no stress. i just discovered yieldstreet. they vet investments that don't ride the stock market rollercoaster. - [narrator] yieldstreet: private market investing.

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welcome back rising rates have cooled home sales, but when it comes to luxury real estate, at least in new york city, the stock market might be having even more of an impact robert frank joins me now to explain. robert >> jon, in manhattan and the rest of the country, it is the top of the real estate market that's seeing the biggest drops. sales falling 18% in manhattan in third quarter prices, which are still rising average apartment under $2 million. prices do lag sales. when you look ahead, it is the

high end now that's getting hit the hardest. signed ked contracts in septemb for apartments priced at $4 million or more fell by 50%. eight-figure apartments that had been selling quickly are now sitting on the market a lot longer the supply of luxury apartments up 29% in the quarter. discounts are now highest for apartments priced at $10 million or more. brokers say sales are simply returning to normal levels manhattan is less sensitive to mortgage rates since half the deals in manhattan are done in cash but falling stocks, weak wall street bonuses, office vacancies and the city's impending financial crunch could continue to reduce demand when you look nationally, sales of luxury homes fell 28% in the quarter. that is the biggest decline, jon, since 2012. right now, unlike the consumer economy, the biggest weakness is

the top of the home market. >> i imamimagine real estate isa global market. how much impact does a relatively strong dollar have when probably already relative bargains to be had in attractive cities in other countries? >> that's true we do hear a lot of americans going to the uk and europe because it is attractive there on the flip side, as you point out, all of the traditional overseas buyers, talking about the chinese, the european buyers, latin american buyers, it is a lot more expensive for them to buy. not just because of higher mortgage rates but because of the currency swing which is now meaningful especially when you look at the euro or the pound. >> now, if the rich are still spending in the real estate market -- or in the consumer market in general but not the real estate, is that a leading indicator? >> it is a paradox on the consumer side, we've talked a lot on air about the high-end in the strongest. real estate, it's the opposite we're still seeing strength in arts and collectibles. i think the wealthy see real

estate has not a form of shelter but an interest rate sensitive investment just like all interest rate sensitive investments right now, they see a decline ahead. >> robert frank, thank you meanwhile, twitter shares still halted at $47.93 on news pending elon musk might be getting ready to buy power lunch" picks up our coverage right now >> indeed we do, jon thank you very much. welcome, everybody, to "power lunch. along with melissa lee, i'm tyler mathisen here is what's ahead on this very busy news day twitter shares halted, as jon mentioned. midday surge elon musk reportedly changing course, and that puts it mildly, proposing to go through with the deal to acquire the company, twitter, at the initial price he offered months and months ago. we will have details on this gopgo i developing story. plus