names. one name i'm watching is this one. >> morgan stanley. i think it's unfairly beaten down today it's a wealth management capital stock. >> cvs it's really cheap. >> that does it for us thanks for joining us. "the exchange" starts now. ♪ ♪ >> thank you very much, courtney welcome to "the exchange." i'm kelly evans. here's what's ahead today. another day, another big downgrade. this time it's moody's downgrading several u.s. banks, and warning more could follow. while the banks are under pressure and retrenching, private credit continues to step into the lending breach. we'll speak with the ceo of one company that says they're well positioned to benefit. plus, big pharma in the right spot shares soaring on a favorable

weight loss drug trial and we look at one business segment critical to growing the economy but unaffordable for many -- child care the ceo of bright horizons joins us with the stock up more than 45% so far this year first, though, let's talk about the market dom chu has the numbers. >> down and in the red if you look at the picture overall, we're hovering towards the lower end of the trading range. the dow is down about 290 points or three quarters of 1% to the downside the s&p 500, the broader measure of the market, up 4479, down 39 points, or about nearly 1%, as well you can see there just for context, it's been a down day overall. at the highs, we were still down 20 points and down 54 at the lows i'll call your attention to just one number, we're not really there yet. but watch 4421 some traders are talking about that as a target that they are

watching right now, the 50-day moving average for the s&p 500 we haven't been towards these levels since going back to the memorial day holiday, around that time. so watch that. the nasdaq composite down 1.25%. kelly mentioned the banks. very much in focus for the moody's downgrade. a lot of them seeing some downside pressure. among the names downgraded by moody's, webster financial, down about 2.5% capital one and citizen's financial, those stocks down 1% to 3%. even the s&p 500 regional bank etf is down 2.5% as well, right now. so watch the fallout from that moody's report and kelly mentioned the two really bright spots in the market today come from drugmakers eli lilly and nova

eli lilly with a better forecast these both make drugs that treat diabetes, weight loss. with novo, their drug could reduce the risk of heart attack or stroke by 20%, better than expected eli lilly has a drug, a diabetes related meld case, that is getting approval right now for possibly using in weight loss down the line. so watch these two i'll show you one more chart, kelly. the two of these guys, up 42% for lily novo, up 40% both get gold stars because both hit record highs on that craze over obesity drugs >> more later on that. now to that blockbuster news from moody's, out with a big

warning about capital and liquidity for larger u.s. banks. that has led to private lenders to step in to fill the void. don peebles just told us how this works >> the competitors in this process for this loan were all private credit in the past, it would have been a mixture of a national global bank, a couple regionals, and one or two private credit lenders. but we have done deals previously with private credit, but the bulk have been with global or regional banks >> my next guest provided the credit for that deal peach tree group invests in commercial real estate and have completed hundreds of transactions let's bring in ceo greg friedman thank you for being here with me >> thank you >> private credit, i wasn't even

sure what it was trying to describe it felt like an area where there was a lot of pension fund money, and now people talk about it as if it's a common sense alternative to going to a bank >> this industry has really boomed over the last -- since the great financial crisis, given the fact that banks have been a big part in financing commercial real estate you know, it wasn't as significant going back 40 years ago, but you have had this consolidation across banking, that has made this more impactful. fast forward to today, private cred sit a bigger piece, just given the dislocation. even without the dislocation, private credit has grown like 5 x over the last 12 years so about $1.5 trillion >> peach tree, i assume you're based in georgia or active down there. one of the reasons why banks got

involved in commercial real estate, they know the market private credit, i always felt like it was a step removed maybe that's no longer the case. it's not like you have loan officers out on the streets. how do you solicit and source and place and underwrite these deals? >> we do have a team of ri originators. we have a large focus towards the hospitality industry and we have about $2.5 billion of equity we are vertically integrated, so part of the ecosystem, we have built a platform called stone hill, and so they're underwriting asset managing, servicing all the debt investments. so we have the ability to do direct loans and take advantage of what's happening in the marketplace with the void being left by banks.

but we also have the ability to pivot and during the pandemic, we were one of the biggest buyers of debt from regional banks, community banks looking to off load loans. >> you're so similar to a bank in some ways you don't have the same capital requirements, but you have other kind of investment firms do you think that this allows you to offer funds at better rates? what is your competitive advantage in the market, is it the cost or availability of capital? >> in this market, being able to execute and have capital available is huge. that's a big advantage more importantly, we really understand, because we have a 360 degree view of the marketplace, give tp fact that we have vertically integrated. so we own, operate, and develop commercial real estate so we understand the issues that different ownership groups face, what it takes to operate assets, and so because of that, we can

really structure loans that are flexible and meet the needs of our customers, which are the owners of commercial real estate >> you had loans in mesa, arizona, hotel conversions in florida and huntsville a mobile home park, you know, activity near detroit. you have really done kind of a lot of different things. i guess just tell me how you think the economy and lending is doing right now, as we are all concerned that this pullback could manifest in six to nine months from now. >> it's created within commercial real estate a pullback there's less transaction volume occurring, because we don't have an efficient lending environment, although it's great for us, because we are filling that void. there's $1.9 trillion of dollars of commercial real estate loans between now and 2026 but there is no question, this is going to put further pressure thanks today, when you look at regulated banks today, they have

pulled back like 75% of what they were lending compared to last year. that's going to put further pressure on just activity and availability of capital. so groups like us will benefit, and it will definitely going to impact the environment >> have you been through a down market before? in the sense that we worry about banks and exposure, and we are worried and depositors what's the contingency plan if you lose 20% to 40% because some of these loans go bad? >> as a firm, i started my company back in 2007 before the great financial crisis we have been through the pandemic, which we have a large exposure in the hospitality industry so that industry was really tested through that period of time our loan book was tested and held up extremely well we feel very confident based onldz how we underwrite and fund our loans. we feel very much that we are

protected and we don't have some of the same challenges that the banks have >> greg, thanks for your time today. >> thank you for having me speaking of commercial real estate, new data shows delinquencies are on the rise. and that could be the next shoe to drop for some banks diana is here with the details >> office is a major component of commercial real estate stress right now, but it's not all of it that's what i want to show here, with new data. overall, delinquencies are rising, even when you take out office, hitting 4.16% in july. when you put office back in, the rate is 4.41%, the highest since the end of 2021. a big chunk is from hotels in san francisco, but four out of the five commercial sectors saw increases. only industrial continues to do

well now, to office, where delinquencies have more than doubled sense the start of 2022, they have hit 4.96%, and many loans haven't even come due yet. for office properties that are already shown signs of distress, that has missed a loan payment or maturity date, values on new properties are down 50%, and for older properties, they're down about 60%. the cre distress will leave marks on some banks. kelly? >> diana, thank you. one of my next guests is a buyer of the regional banks here even after the downgrade and in light of the commercial real estate market. welcome to you both. mark, kre, i mean, oh, man, don't just tell me it's leverage

>> well, we talk ed about the ke for the past two months and it's up more than 15% in the past month. so it hasn't been a bad mplace o be there's nothing new in this report we are aware of the higher cost of deposits, and that's legitimate no sector is better poised for expense reduction and mergers than the banking sector. it's the one area where even the biden administration can get behind aggressive merger and cost cutting activity, because we're overbanked and it's long overdue. as the pressures mount, we expect well-managed regionals to not be stuck like a deer in the headlights >> so jeff, i don't know if you have been dipping your toes in this area or have any thoughts of the moody's downgrade >> i think mark's right. they were late to the party. they're acarric in nature.

it's 2023, not 1923. >> you know, they're still impactful. >> they are, but not like they were at the end of the day, i just don't think it's that impactful. we start with fitch last month, i think the ratings are a little overblown, but there is a reason here when you see this trying to get the 50 day moving average, but you look at some of these names, they're getting hit on the chin today, but they have also had a nice run we see interest rates moving in a historic manner. >> is the market getting choppier i am thinking about tom lee's morning from a week or two saying it's going to be a toucher slog here.

>> you talk about volatility i'm optimistic, but when you talk about the vix, those are the expectations for the s&p 500 for the next 30 days where we just came from, this is a little wowonky, but realized volatility is what the s&p 500 does daily so that was less than half of a percent, the market has been slowly moving. we have seen the vix above 19 today. so now this is not panic we are not seeing people buy protection i think this is very healthy consolidation, when you see it come back down >> all right so mark, let's turn back to some of your picks. we mentioned the kre that's so controversial. and dramatic some of the others, you have

apple, microsoft, oracle, meta, do those names ever come out of the portfolio? >> no, i think they're here to stay i think since they make up part of the index and a big percentage, just about everyone owns them any way. each one has its own story, and i like the fact that apple and microsoft have pulled back it might even continue, and that's going to create opportunities for value-minded investors to buy great companies at better prices the story with meta, we have an election year coming up, and it's going to be huge, huge advertising dollars. google will benefit from that. meta's had a huge year this year looking into the 2024 election cycle, i think we're going to break all sorts of records for add spending, and they're both very well positioned for that cycle. >> i think if you consider how youown those tech darlings, right? i think owning them in an equal

weighted manner makes more sense. in 2022, i'm going to new jersey and talk to the folks over there, because there is a motion in this marketplace. but when you talk about the leadership, we have seen in 2023 kelly, the tech leadership, i think it persists because the ten-year should stay under 4%. that's been the guiding light new york doubt about it, the ten-year note. >> mark, you do like disney. is this an opportunity for people here? >> long-term patient investors, i'm not going to bet against bob iger he came out of retirement. he didn't do that to soil his stellar reputation all the bad news is out, and the last time i checked, we're supposed to buy low when there's blood on the street, and disney will be poised longer term to benefit. >> let's move on to this if i'm not mistaken, we were

talking about defense. we thought it would benefit from bipartisan support ukraine was bringing people together but the stocks are still struggling it seems as though budget in d.c. is trumping everything and has people concerned >> two thing that is highlight in that space. one, boeing is one of the largest companies that is a winner raytheon had a single stock, out of the blue event. it's going to cost them some money in the long-term i think for a countertrend purchase, investors could use defense as a hedge against these events so i don't think it's necessarily a bad place to be. they're two of the three biggest holdings >> lockheed martin, down 6% all

year it fits that narrative, kelly. so owning a name like that is essential. >> you still feel comfortable owning it when it feels like the stock is telling you, despite all the great narratives and the positive tail winds, this isn't their moment there's too many head winds. >> that was the exact narrative for boeing you have to be patient with some of these naming and own them when the rest of the folks don't want to. there's a buyer for every seller and a seller for every buyer >> mark, jeff, thank you both. really appreciate your time and thoughts on the markets today. coming up, child care spending accounts for a fifth of a family's income. the former fed president says we have to make it more affordable. what will it take to bring down costs? we'll ask the ceo about that next on the heels of their second quarter results and following the pharma stocks, hitting record highs today we'll look at the impact the

obesity drug boom is having on consumer staple stocks and here is a glance across the markets, where the nasdaq and russell are neck and neck. the s&p down only three quarters of a percent, 243 point drop for the dow. "the exchange" is back after this (vo) verizon small business days are back. from august 7th to the 13th. get a free tech check and special offers. like a free 5g phone. plus, switch, keep your number, and get up to $300 off. with verizon business. it's your business. it's your verizon. if you wake up thinking about the market and want to make the right moves fast... get decision tech from fidelity. [ cellphone vibrates ] you'll get proactive alerts for market events before they happen...

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welcome back to "the exchange." the dow down 250 points, as it continues to reelsome what of the moody's downgrade of regional banks we saw bond yields moving, as well now, nasdaq is down 1.15%. beyond meat is plunging 16% today after missing revenue expectations by weak u.s. demand, having its worst day since may, down 95% from its all-time high of $240 a share. meantime, every name in the kre regional banking etf we were just discussing is negative, with the group tracking for its worst day since june 1 as you just heard, our last guest was a buyer. and regulators are also fining global banks for $500 million

for long standing failures to maintain internal records and communications, including allowing employees to use channels like whatsapp bnp, and bank of montreal was fined $60 million. for a full list of banks facing fines is at cnbc.com the soaring cost of child care is getting more attention as politicians look to keep the economy growing. take a listen. >> i would love to see us reprioritize or increase the priority of educational attainment, 0 to 5, the whole ecosystem, skills training, secondary education. i think we have let that lag a bit. >> but just real quickly, do you throw money at the problem how do you fix it?

>> teacher's salary is part of it child care that is affordable. >> well, as costs have risen sharply post pandemic, parents are spending 20% of their annual income on child care, compared to the 7% experts say is sustainable. i'm joined by a ceo who runs a child care company and the stock is up 40% year to date they just reported a slight beat on the top and bottom lines. let's bring in steven cramer, the ceo of bright horizons teach, welcome >> thank you very much it's a pleasure to be here >> great to have you describe to us how your company works. >> so back 35 years ago, the founders recognized that there was a real challenge for working parents as it related to accessability affordability, and the quality of child care. so starting back 35 years ago, we started partnering with employers who had a vested interest on behalf of their employees to invest in child

care and so through the capital that they provide, as well as the ongoing subsidy, we have the ability to serve working parents who have that added benefit from their employers. >> i think our parent company is one of them. so how does the benefit work does the employer and the customer split the cost effectively? >> yeah. so comcast is a client so thank you very much for that. so we have clients of our child care center business, and in that regard, we have on-site centers at more than 300 sites across the country for employers. and essentially, the employer is responsible to build out the site, typically on their campus or in their building then they provide typically ongoing subsidy to offset the quality of child care for their employee in addition, in the case of comcast, and nearly 1100 employer clients, we have something called backup care that's really when an employee

has an intermittent breakdown in care arrangement, and that employee can bring their child to one of our centers or send a caregiver to their home for that day. >> the shares are up 46% this year it seems more and more people are turning towards needing this kind of support. the only thing i can see being a long-term threat is if we offer universal pre-k or something to that effect. the cost of getting the kids from 0 to 5 years old is astronomical for a lot that is unaffordable >> the reality is that i and the company believes investment in child care, whether it's three employers or government, is positive for working parents so universal pre-k is an example. there are some municipalities that offer that. new york city is a great example of that. we actually participate in those programs we look outside the united states, we operate in the you can, netherlands and australia

they have formed a government supporting child care. we flourish in those environments, as well. and so from the perspective of what is good for bright horizons, in addition to that, we would welcome government support. >> i take your point universal pre-k would be better and the government could pay you. it would be like college where it costs $50,000 a year but no one is paying. my question is, why has the coast gone up the last couple of years, sit labor costs driving that we've all noticed it, anecdotally, most of the providers we have seen annual costs go up by several thousand dollars. >> so delivering high quality child care is expensive. so ultimately, we have looked to invest in our teachers so that comes at an expense. so our view has always been that employers are the remedy to try

and keep costs down for working parents. certainly, we have had to raise tuition as we accelerated our wage investment. on the other hand, it's really important to make sure that we are providing the best experience for young can children, given that 90% of brain development happens in the first five years of life >> question about the high turnover that people sometimes experience your earnings speak to the fact that you do have some cash to throw around could you raise wages, become an industry leader, and thus reduce turnover just talk about how hard it's been or might still be to find qualified workers? >> yeah. so it's certainly cha ly challeg our belief has always been to hire people with skills.

so one of the most important innovations we have brought to the industry is the teacher degree program where someone who works at one of our centerses that ability to earn their four-year degree free with no out of pocket expenses so we are trying to increase the number of early childhood educators in the field, and for us and for the field, that's a really important element to it wages are certainly important, and we have continued to professionalize our field and increase wages but we believe that growing our own has always been the best solution >> anything that we can bring the cost down at this point or keep it from not rising as quickly? >> look, i think that wages continue to increase, and the largest component of any child care organization and certainly bright horizons, is labor costs. so the early childhood practitioners doing the heroic work in the classroom are the beneficiaries of the wage

increases. at the same time, you know, that obviously has to either be offset by increases in tuition, or we have really important relationship wls our employer client that allow that to suffer some of those increases that are normally passed on to parents. >> it's certainly heroic work. steven, thank you for joining us today. hope to check back in soon >> thank you >> steven cramer with bright horizons still to come, it's telecom tuesday. we'll tell you what they are saying about this deal and the underperformance of dish "the exchange" is back after this

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welcome back to "the exchange." i'm tyler mathisen the federal grand jury that invited former president trump is meeting again today that could signal that the special investigation into trump's efforts to overturn the 2020 election could add more defendants soon. trump was charged with four felony counts last week and the indictments detailed the alleged co-conspirators played in the scheme there is speculation that some or all of them could be criminally charged, as well. the biden administration can enforce regulations on ghost guns from the supreme court today in a 5-4 decision. the regulations are aimed at

reigning in privately made firearms that are difficult for law enforcement to track the and americans are pulling money out of their 401(k) accounts at alarming rates because of financial distress bank of america reported that the number of people making hardship withdrawals during the second quarter was 36% the bank saw a dropoff in average contributions, kelly, to the accounts back to you. >> too bad tyler, i'll see you shortly. coming up, eli lilly and norvo hit some record highs. we'll look at the impact their obesity drugs could have on the food ecosystem hexcng iba aer"t ehae"s ckft this

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welcome back to "the exchange." obesity drugmakers are posting huge gains today the data shows that not only does obesity drugs help people lose weight but reduces the risk of heart attacks and strokes by 20%. that could help insurers and employers justify the high monthly cost of these drugs and sending shares of novo nordisk

up as much as 17%. eli lilly up 13%, partly after it posted stronger than expected earnings and a guidance hike now, it's just the latest buzz surrounding the industry that morgan stanley expects to reach $54 billion in size by 2030. with that demand, they are looking at the impact you could have across the food and beverage space here to talk more about that is pam kaufman from morgan sltanley welcome, pam >> thanks for having me. >> is this effect already showing up, you think? >> we see this as a longer term implication for the food ecosystem. the growth in the drugs is exponential, and we see impacts to the food beverages and restaurant industries. our biopharma analyst expects drug use to grow five fold over the next decade. and given that these drugs

reduce hunger, we see impacts to the food industry over the long-term. so it's still too early to see an impact now. but we think this is a longer-term risk that investors need to pay attention to, and the food industry will need to adapt to >> it's fascinating. one thing to say hey, there's a weight loss drug out there, or maybe even, hey, you can keep eating like normal but the idea is this would impact -- we heard that it does impact what people desire to eat. and as a result, talk to us about who you think some of the biggest losers could be. >> sure. so our research shows a significant impact on consumer behavior when they're on these drugs. which could have significant consequences for the food industry we did a survey of patients on these drugs.

they cut down on the number of meals they eat by 20%, the number of snacks by 40%. overall, it results in about a 30% reduction in daily calorie consumption. so really, we see this as having an impact across the board on food companies and also fast-food restaurants. in particular, we found much more pronounced impact on snacks, sugary drinks, and fast food so within my coverage, the companies that can be most affected are names hick hostess and hershey. >> it's hard to be so happy, but i kind of am i go, you know what? maybe the economy would do a little better with a little less market cap in those things maybe i'm a grinch for saying that, but you have some beneficiaries, as well the protein drinks with protein bars so you think consumers might reach for healthier options? >> yeah. so what was interesting in our

work is that consumers happen to be eating or patients on these drugs are eating fewer categories across the board. but there were only a few categories that stood out where they're eating more of them. and those were weight management foods, also higher protein foods like poultry the companies that have exposure there are simply good foods, they make ready-to-make protein shakes and bars. i think that coincides with people choosing to have a healthier lifestyle when they're on these drugs >> fascinating fascinating that you can inject yourself or take a pill one day and it has that pronounced of an impact across every aspect of what your taking i know you don't cover the restaurant industry, but some may be exposed pam, thanks for joining us today. >> thanks for having me. on that note, don't miss an

interview with eli lilly's ceo that's coming up tonight on "mad money. after a short break, we'll tell you what else is going on in the stock market. plus, the latest tensions between the u.s. and china, including that flotilla near alaska back after this. dad, we got this. we got this. we got this. we got this. we got this. yay! we got this. we got this! life is for living. we got this! let's partner for all of it. edward jones

welcome back, everyone let's show you a chart and tell the story. dish and echo star higher after announcing plans to reunite 15 years. the merger ties dish's pay tv satellite service and 5g network with echo star's satellite communication network. >> i'm a big investor in our company, so certainly i'm disappointed in our performance.

but i also have the confidence to know that's short-term, and that you're going to see the culmination of the things that we put together. you're going to see all of that pay dividends for us our investor also be rewarded for that >> dish shares are down 40%, and echostar is up 40% this year but echostar did surge 21% yesterday ahead of this announcement the stock was upgraded to a strong buy partly due to its strong balance sheet. so including yesterday's move, shares were up about 16% from jan 1 through friday's close there you have it. coming up, joe biden expected to issue an executive order to limit investment in chinese tech this timing could ultimately hurt the united states we'll explain that, next

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♪ welcome back to "the exchange." the biden administration is expected to curb u.s. investment in china has part of the on going efforts to restrict u.s. tech, things like semis and ai republican mike urged the president to go further, including limiting investments in stocks and bonds as well. it comes as china's economy continues to flounder with exports showing the steepest drop since february of 2020. imports from the u.s. were also down 12% and my next guest says this is classic decoupling which could wind up hurting the u.s. and

spark retaliation. joining me is steven roach and david reedle welcome to you both. steven, i'll start with you. it sounds like you're not saying these moves are a bad idea just we shouldn't think they are without risks or consequences. >> well, thank you for having me on u.s. politicians have figured out decoupling is bad. it raises costs and exacerbates tensions with china. so guess what, you know, they decided to rename the concept and call it derisking. whatever you want to call it, the numbers are very clear in 2018, the on set of the trade war, china accounted for 47% of our total merchandise trade deficit, and now the number is 32 so we have decoupled, whether they want to call it that or not, and these actions along

with mike gallagher's ill-informed efforts to decouple capital flows i think will exacerbate problems in the united states and lead to further conflict with china. >> david, do you agree >> well, i think you're quite right. because of changes in supply chains and trade flows, the trade flows today are very different than they were pre-pandemic and i think that that's partly political and partly economic. i think the world discovered that they couldn't rely entirely on china for so many oftheir trade routes and trade linkages. so that's been diversified china trying to come out of the pandemic hasn't been able to find its footing because people have found other solutions to their manufacturing. i completely agree on cutting off the capital market connections. i don't think that's a wise move for the u.s. to ignore entirely as an investment option the

second largest or maybe the largest economy in the world depending on how you're measuring it. >> what do you think the impacts will be if any day now we're expecting this executive order to come down, david? >> well, my view is the executive order is another brick in the wall of stuff that's already been announced this is u.s. trying to control flow of u.s. resources and knowledge and electrical property and funding into the development of ai and chips and semiconductors in china. the industry already knew this was coming they knew this was the u.s. intent was to shut off flows into those particular sectors. so i think that's pretty limited. but i think if you start to really attack some of the u.s.-listed chinese names, alibaba and these names are very heavily held in pension funds and other funds to provide exposure to the chinese market i think that would be unwise >> and it doesn't sound, stephen, like we're necessarily going to go that far

so is this intermediate step warranted? i see at the same time today we have some lawmakers calling on the ftc to address potential threats in the internet of things from chinese cellular modules. >> well, first of all, kelly, keep in mind the select committee on china that mike gallagher is the chair of, has no policy authority whatsoever all they have is a bully pulpit and gallagher is using that very effectively to moan and scream about china's what do you call techno authoritarianism, and put enormous pressure on two companies, black rock and msci to respond to a whole slew of questions and other forms of interrogation. but they can't make policy in this committee and thank god for that >> so, finally, then stephen, as

people look at the chinese stock market, which has been underperforming i would think about comments that china has simply not been a good investment, a good steward of anybody's capital. if you think that's going to change or where do we go if we continue down this path? >> i think ultimately the stock market will be driven by the fundamentals of the chinese economy which are terrible the trade data released over night, it's not just that exports were down. it's that imports were down much more sharply than expected which indicates the weakened state of internal or domestic demand. china increasingly has more of a japanese-like problem with an ageing work force and weak productivity and a debt-intensive response to these problems, which borrows a page right out of japan's script. so they have very serious

problems to address and the policy actions that they seem to be taking right now do not appear to be forceful enough to address this problem. >> yeah. that seems to be widely agreed, david, that for whatever reason, maybe lack of capacity or because they're focussing on national security or what have you they don't seem to be pulling out any kind of big bazooka, are they? e. >> well, that's right. they held a lot of dry powder for stimulus i think you'll see fiscal stimulus and white goods support and support for ev sales domestically they realized with the falloff in imports and exports they really need to focus on their domestic market. mr. roach is right, that's proven to be difficult for them to mobilize that domestic demand in high youth urban unemployment and other challenges throughout the economy. but i do suspect you'll see beijing come in with some sort of stimulus here in the coming weeks. >> what kind of stimulus >> i think it will be to spur domestic demand, rebates on

buying new washing machines and air conditioners that are domestically produced, installing solar, things like that stomping out the capacity in their economy with domestic demand it's an old tool they often use. >> david makes a point, those are essentially the types of stimulus actions that china has already unveiled on monday they introduced a 20-point plan to stimulate domestic private consumption. but these measures were driven more by their central planners who have a micro focus in looking at products in very narrow pieces of consumption china needs a macro solution to its consumption problem. i stressed around written books for years without the failure of them to reform their social safety net for health care and

retirement until they do that, china's consumers will save and not spend and they'll be stuck with failing to deliver. >> and the pandemic only worsened that anxiety for sure thank you both stephen roach, david riedle. we appreciate your time. we wait this announcement from the biden administration next on "power lunch," we'll get trade on some of the biggest earnings movers, amc, u.p.s. tyler is getting ready i'll join him after a break. this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. and you are? i'm an investor...in invesco qqq, a fund that gives me access to... nasdaq 100 innovations like... wearable training optimization tech. uh, how long are you... i'm done. i'm okay.

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