hope you'll join me then. we'll take you through this final hour. give me a find trade. >> psq, which is short. take out some protection. >> organon. >> howmet, an industrial name. >> thanks, everybody. see you on "closing bell." "the exchange" is right now. welcome to "the exchange." i'm kelly evans. we start this hour with breaking news. it's details on openai's latest funding round. let's turn to kate rooney in san francisco with the story today. >> reporter: so openai has officially closed its multibillion dollar funding round. it marks one of the largest private deals we have seen in silicon valley ever, in history. it's bigger than what we have seen with a lot of the largest ipos. the total round of $6.6 billion, this was a $157 million post

money valuation, well above the $1 $150 billion we had been hearing about. it was led by thrive capital, also had participation from khosla ventures, microsoft, as well. softbank, nvidia, uae backed fund mgx. you had some others, as well. in the press release today, just now, openai says that this new cash will help them double down on leadership and frontier ai research, increase compute capacity, and continue building tools that help people solve hard problems. the ceo saying in part, ai is already personalizing learning, accelerating health care breakthroughs, and driving productivity. she says this is just the start. you probably know this name, openai is the maker of chatgbt. they are also disclosing some new growth stats in this release. 250 million weekly user, that has doubled from a year ago, and

grown by 50 million in the past two months. they've also got a million chatgbt plus subscribers and a million chatgbt paying business users. despite the growth, this company not yet profitable. openai is still on track to lose about $5 billion this year. that would be on $3.7 billion of revenue. no updates on the company converting to a for-profit yet, but i'm told that is very much in the works. this is now one of the most valuable companies in the valley, and in the world really, just behind spacex, which has been around for two decades. at this point, the openai round highlights some of the endless demand to get part of this ai company. tomorrow, we'll sit down with the fco at the 10:00 a.m. hour. >> this is massive, considering the company is going to lose $5 billion this year, on $3.7 billion of revenue.

so normally we see, okay, there's a path to profitability. but in this case, if they can't figure out a way of running more efficiently, and these chips are so costly, i'm curious what investors are so excited about? >> reporter: they are whistling past the losses. you hear from sources, those losses are sort of controllable, that they are allowing themselves to lose that amount of money because they need to spend and compete in the long-term strategic bet here is that this is going to be a short-term loss, and in the long run, they have to sprint to spend. that's going to mean losses, but they're hoping that this is really the winner in ai. so a lot of competition this round, we talked to investors who did not get into this round. it's one of the most competitive private funding rounds we have seen here. i would note softbank getting in here, so that marks one of their big, new ai plays. they have been circling the ai space, wanting to get in on openai, and this is their chance here. >> kate, thank you for bringing

that to us. that's not the only news out of the tech space. we could say the artificial intelligence world, nvidia announced a partnership with accenture to help clients adopt their technology. we turn to deidre bosa for more details in today's "tech check." this is a big deal as well, deidre. >> yeah, and you know what? these stories are very much related, because you're seeing lots of spending to build the tools and develop ever-more advanced models. that's what this openai round was about. but it's taking longer than expected to materialize into margin improvement at the companies buying these tools. that's what this partnership aims to fix here, partnering with accenture for the adoption of ai tools. they're making sure the billions of dollars mega caps are spending will translate into hard revenue, while keeping nvidia relevant every step of the way. nvidia has cornered the hardware

ai market with gpus and moved into software. now it's making a bigger play for distribution and enablement. accenturery's army of confull tanlts will go to customers across manufacturing, financial services, et cetera, and help to implement those tools into everyday operations. in some cases that could mean that they subscribe to a co-pilot or agent force and other cases that could mean building a custom model with an openai internally. still unclear, though, how soon enterprises are going to see results. there was a very similar partnership that nvidia announced one year ago, that was 50,000 employees to be trained on ai solutions. even the wording nearly identical. it aimed to "help enterprises worldwide drive productivity gains with generative ai." one year on, investors are still looking for those gains.

now, nvidia's and julie sweet will be on later today. that continues to beg the question, when are we going to see killer use cases that move the needle on productivity or sales of new ai enabled products like the iphone? it's all connected, and raising the stakes here. but certainly the vc community, they want to make sure they have a bet on what they think might be the winner. >> sure, that's their job. in accenture's case, so many people pointed out the consultants could be one of the booming areas that benefits from generative ai is companies try to figure out what to do with it, and what competitors are doing with it. accenture shares, assuming they might be at an all-time high, to my surprise they peaked in 2022. they were higher in february of '24 than they are now, and on the year only up 1%. >> a lot of this is still an open question, is this army of

consultants going to drive real productivity gains? a year ago, we haven't seen a lot of follow through at the bottom lines. it also raises an interesting question. i mean, these consulting companies, the net impact of generative ai has been flat or decreasing their workforce. this is making use of 30,000 existing employees, and kind of using them in a different way, getting them trained with these ai tools and consulting. but kelly, look at ibm. they've been largely consultants. that stock hasn't gone anywhere for a decade, and they're in the business of helping implement technology solutions at different companies. >> including their own systems, as well. deidre, thank you. we look forward to hearing more from those executives later on. sticking with the chipmakers, the whole group could face a new under the radar risk that could undermine the

industry in six months. megan has the details. >> that's right. so the semiconductor supply chain is dependent on quarts, that comes from spruce pine, north carolina. spruce pine saw two feet of rainfall from hurricane helene, and now nearly a week later, city officials tell me that there's still no water, power, or cell service. the infrastructure is completely disrupted to the point that roads and railways are so torn up that in some areas in the western part of the state, mules are being used to transport materials in and out. so the two companies that operate the quartz mines there, they tell us their work has been shut down since thursday, and quartz corps adds they have no visibility as to when operations can restart. so the question is not just whether the mines have been damaged but also if it's possible to get the quartz out. it would impact the

semiconductor market that depends on it. that quartz is used in solar panels, fiberoptic cables and ligh lightbulbs, as well. i just spoke with the head of tech set. their best guess right now is four to six weeks until things are back up and running in s spruce pine, if the roads are cleared. every day that timeline is e ex extends, that impact multiplies. >> remind me who in the chip world that uses this quartz, is it everybody? >> every chainmaker. if you have a cell phone or a computer, you have a piece of spruce pine with you. it's the only place in the world that supplies this highly pure quart that is's used in every semiconductor that's out there. so it was a vulnerability that was known before hand, but now the question is really here. before it was a hypothetical, now it's a real question of what happen it is they can't get this

quartz out. >> sorry, you said it would be days or weeks at this point? >> they think four to six weeks, but that is depending oh ing on roads being rebuilt. some places the roads are torn out of the ground. if they can get those rebuilt quickly, that should be okay. they do think because the semiconductor market has seen a little bit of a slowdown recently in demand, that there should be some level of inventory that's okay. but if it's anything more than four weeks, i've been told by experts those ripple effects magnify. >> incredible to have that happen at the same time as the port strike. megan, thank you. we'll continue to track that story. some new numbers show that insiders at chip companies sold a record $1.3 billion in stock last quarter, which is interesting, because there's been a slowdown this the industry lately. to see who is selling, just scan

that qr code or go to cnbc.com/pro-pick. stocks having a shaky start to the month. dom chu has the numbers. >> a little more volatile. from modest losses to modest gains, back to modest losses. the s&p 500 is sticking right around that 5700 mark as you can see. that number is down eight points. we were up about nine points and down 34 at the lows of the session, so that's your trading r range. the dow down 35 points. the nasdaq, 17,904, down about six points, flat on the session, as well. one place that's seeing a little more activity to the downside. tesla shares, down 4% right now. you can see over the last year relatively flat. delivery numbers came up from the previous quarterly, they just narrowly missed estimates, but enough to shake some traders into selling the shares to the tune of 4%. and then one other place that

we're keeping a close eye on is that momentum we were seeing in the chinese market, given all the stimulus. the caveat here is, the actual mainland chinese markets, the stock markets are closed this week for that golden holiday. they're not trading, but hong kong traded and listed shares of those chinese companies are, and because of that, you're seeing these shares up about 4%. china large cap etf is up 5%. it trades and holds those hong kong listed shares. a alibaba showing some relative strength. hong kong is still roaring. we'll see how that momentum continues. >> sure, people are talking about the aussie currency and other areas of the global markets. >> and don't forget the kiwis, as well. >> thank you very much. those hong long property listed stocks are sharply higher today,

to the highest levels in over a year, as the stimulus rally continues. but my next guest says this is just a short term trade, not a long-term position, and there are better places to invest. jared woodard is here. jared, welcome. you won't to go up against tepper like that? >> i think there's always opportunities in the market and our view today is whether it's monetary easing in the united states or easier policy in china, these can be incredibly powerful in the very short term. but probably aren't the number one place to commit capital today. for anyone looking for big returns on a six or 12-month time frame or longer. >> i took note, and i'm sure you did, as well, that stanley drukenmiller remains not excited about thepossibility in chinese stocks. he said until there's a leadership change with xi jinping. i'm sure many people share that view. >> i think it's also the broader economy in china. this stimulus package is, of

course, a positive. but our economist in china, our strategist at bank of america and other colleagues, we seem to all have the same view, the fundamental economic challenges faced by chinese economy are not resolved by these stimulus measures. you don't have a robust consumer base, and you're exporting, that's not been the kind of recipe for incredible dynamism for chinese equities. chinese bonds hit an all-time record low. the government was -- policymakers were stressed out about this. you can interpret some of this stimuluses a an effort to divert slows of capital from deflation toward the stock market, and we don't have the view that this is the kind of fiscal bazooka that would give you multiquarter sustained economic growth beyond the trend level. >> are you in it anywhere for a trade or are you really on the

sidelines here? >> i appreciate the comments from dominic earlier. when you have markets that are liquid or you don't have the transparency and data, accounting data, et cetera, that investors in the united states might be used to, i think it makes those trades riskier than they are. there's a lot of ways to benefit if you see sustained economic growth in china or earnings from their companies in terms of orders around the world. i think the second derivative investments whether it's in australia or latin america, might be a better way to play any upside that does happen without requiring the kind of challenges that sometimes happen when investors overseas try to get active in mainland chinese equities. >> you're looking elsewhere as well for areas of the markets that have outpaced the qqqst this year. they range everything from national defense stocks to u.s. renewal plays, nuclear power fitting in with that. and you're still bullish on japan. >> that's right. everyone has artificial intelligence on the brain. but i think it might be

interesting news that all of those trades you just mentioned, those have been bullish positions of ours for a while, have outperformed the growth stocks this year. post portfolios are weighted something like 70% toward growth equities. in japan, you've had massive corporate reform. i was in japan last month, it was interesting how many investors think we're only in the 3rd or 4th inning of the big reforms. you're seeing record buybacks from japanese companies, and there's something like 33% of gdp still locked up in cash in japan. as those reforms work through, i think you can expect most of the structural upside in those equities and earnings potential in that market. >> again, japan was kind of -- preceded china in many of the measures china is taking to boost its stock market. so perhaps a little brighter story to tell in the long run. jared, thank you for joining us today. >> thanks, kelly. coming up, we're just 33

days away now from the election, and we're checking in with two major trade groups. one is 850,000 members strong with a big presence in one of the swing states. they have also picked a candidate. we'll tell you who that is ahead. and geopolitics is on the minds of investors given the iranian strike in israel. we'll dig into that and the eareat of a wider war after the brk. brk. >>u reach them with confidence. no wonder more than 9 out of 10 of our clients are likely to recommend us. ameriprise financial. advice worth talking about. cnbc.joj

let's say you're deep in a show or a game or the game. on a train, at home, at work. okay, maybe not at work. point is at xfinity. we're constantly engineering new ways to get the entertainment you love to you faster and easier than ever. that's what i do. is that love island?

welcome back. israel and the united states have warned of severe consequences to iran's missile attack yesterday. one of our next guests says a wider war is here, but the question is how wide? for more on what a response could look like and the potential impact to the energy markets, i'm joined by a senior fellow at the council on foreign relations, and the director at energy aspects. charles, i'll begin with you. what are you hearing is the latest in terms of a possible israeli response? >> well, as you put it, a wider war is here. we just don't know how wide. i'm guessing what's going on now in israel is that the leadership is talking to the military commanders about a menu of options for retaliation. i think retaliation is a sure thing. israel does not let these kinds

of attacks go without hitting back hard. i can imagine a latter of options, the low end being asymmetrical responses, a cyberattack hitting iranian targets that resparen't in iran then move into energy and infrastructure. the third level might be strikes on military targets, command and control in particular, because the israelis have done a great job of pulling down hezbollah's ability to retaliate by hitting their command and control. the upper range would be strikes on iran's nuclear sites and strikes on the regime aimed at toppling the iranian government. at this point, it's difficult to tell -- >> right. >> i think the u.s. is going to be counseling restraint, don't go for the full monte, because we don't want a huge war in the middle east. >> of course, just to press on that for a moment, what is the timeline that we could be talking about here?

sit today, is it hours, or could this retaliation come within weeks? and why shouldn't israel take this opportunity to strike at the heart of iranian oil or nuclear production? >> i'm guessing days. i think in general, you see israel hit back pretty quickly when it gets struck. and there's no question that in the mind of bebe netanyahu, he's degraded iran's most threatening proxies, hamas in gaza, hezbollah in lebanon. he may say this is an opportunity for me to try to finish the job, to go to the puppet master, to take the war to iran itself. >> right. >> you know, i think that the calculation here is, you take a huge risk. i mean, we have seen the united states topple regimes in iraq, in afghanistan, in libya. those didn't go so well.

so i think some tough judgments are being made here about whether trying to go after the nuclear sites and toppling the iranian regime are worth the risk. and i'm guessing washington is engaging israelis in that conversation. >> and rita, as this all plays out, perhaps the most significant headline, and tell me what you think in the past 24 hours, is from the saudis talking about $50 oil. if we were already -- if we had oil anywhere over $100 a barrel or dealing with supply shortages and what not, this conflict would be resulting in dramatic spikes. instead, the opposite seems to be the case here. >> yeah. i mean, look, there's a couple of things in terms -- with regards to iran or israel for that matter. if there were to be strikes on iran's oil facilities, iran has said that it is going to be targeting potential oil

infrastructure across the gcc and other countries, as well. which remains a big risk. we have seen that with 2019 attacks, and i think if that were to happen, prices will go up. but coming back to the question of the $50 oil, i do really firmly believe, given we have spoken to our sources directly, that that headline, and the story, was quite misinformed. there wasn't necessarily a call that took place last week. look, it doesn't mean that the thrust of the story is incorrect in the sense that the focus of saudi arabia and the other countries that are going ahead with the voluntary cut is in compliance. they don't want to be in a situation where they are cutting production, and there are a few countries that are not complying. absolutely that remains the focus. but i think there's a little bit -- you know, there's more to that story in terms oh of the timing of it. as soon as prices started going up, that story got leaked to the press. so yeah, i will say that i found

that timing very suspect. >> all that said, saudi indicated that they're willing to supply the market in order not to cede market share, so if the number is $50 or not, they seem to be biased towards supplying the market than towards pulling back and pushing prices significantly higher. >> so, again, for context, what saudi arabia is say is that we will be bringing back barrels, why should we not -- why should we suffer, right? while others are effectively not complying? but, the focus for them remains on keeping inventories below the five-year average. they have consistently said they will only return barrels or just generally change the policy, depending on market conditions. i think there's a big nuance between them flooding the market and going after market share versus saying look, you have compliance to focus on, and when you take barrels off, we will bring barrels on. i think there's a lot of these

media headlines going around which doesn't necessarily represent what they are trying to say. >> if you're right, and it's not as dovish a policy as we're thinking, should. that push the oil market higher? isn't the market telling us it's not concerned about the supply situation? >> absolutely. i think you're exactly right. what's going on with all these reports is the market is complacent saying opec does have more capacity. the balances are bullish next year, but the market is also very short. these are record shorts we have seen in this market. demand is picking one the chinese stimulus, it's better than expected. we are seeing struggles at these prices. so i will even challenge our own balances to say, will it necessarily build to the extent, and that's when i think the market might end up being wrong. >> so to put a point on it, that would imply higher oil and

gasoline prices and an added dimension of urgency here in the u.s. thank you both for your time. still ahead, billions in trade are disrupted as port strikes enter their second day. this is a live shot at the picket line in the port of elizabeth, new jersey. we'll speak with u.s. transportation secretary pete buttigieg on how the biden administration plans to address the situation coming up. check out shares of humana, which are sharply lower today, down 12% after the government gave them a lower than expected quality rating, which could have an impact on reimbursement rate. the shares are at a 52-week low ju off their session lows

this afternoon. back in a moment.)

custom ink helps us motivate our students with custom gear. we love how custom ink takes care of everything we need so we can focus on the kids. we make it easy to wow all your groups with high quality custom apparel, accessories, and promo products, all backed by our guarantee at customink.com.

welcome back to "the exchange." i'm bertha coombs. new york mayor eric adams' court hearing is underway, but

prosecutors said they could bring additional charges and indict others in the case against him. adams pleaded not guilty last week to charges of accepting $100,000 in flights, hotel stays, and more from a turkish diplomatic official in exchange for his influence. big lots will close about 50 more locations as the budget retailer moves through the bankruptcy process. court filings show some 344 stores will now shut down. big lots filed for chapter 11 last month, saying it started the process of closing nearly 300 stores so it could fix its balance sheet and reduce costs. there is a new corn maze in kentucky featuring the faces of kamala harris and former president donald trump. with the phrase "vote 2024" in between the two presidential candidates. the co-owner of the western kentucky farm tells local media there's no intention of endorsing either candidate, but

to promote overall voting. good for him. back to you, kelly. >> cool to see that out of a plane. bertha, thank you. coming up, last night's vice presidential debate saw the candidates agreeing on at least nine different points. did they do enough to sway america's undecided voters? here's what they're telling us. >> many of our members are low-became workers who are indeed struggling to get by. they're worried about the cost of housing, the price of food, and those, you know, those concerns are what is at the top of their mind, just like many americans as we get ready to go to the polls in november. >> our economy was crushed by covid and the biden/harris policies brought the economy back. it saved our jobs. >> agriculture feeds, fuels and clothes everyone, and we have to step up to that responsibility

making sure our voice is heard, and that we are looking at the candidates to choose the best candidate, not the party, but the best candidate for what agriculture needs is important. >> when we come back, we'll hear from two more trade group representatives. one is yet to endorse a candidate, but will they today? candidate, but will they today? we'll find out after the break.l

tax smart investing today, helps to build a stronger tomorrow. at pgim custom harvest, our unique direct indexing approach seeks to help investors achieve better after-tax outcomes. pgim investments. shaping tomorrow, today

nate jones... lines things up... checks his fidelity app... looks to outside analysts to get a second opinion. nate likes what he sees... and he places the trade... talk about easier investing.

welcome back to "the exchange." we see red arrows across the board today. the russell is the worst performer, down 0.2 of 1%. the s&p vies with the russell there, and the dow down 39 points. last night's vice presidential debate between jd vance and tim walz was heavy on policy and lighter on the fireworks than we have seen in the presidential face-offs. let's dig into it with the election less than five weeks away. and we're continuing our checks with various trade groups about what they're looking for. darren von rooden is here, president of the wisconsin farmers union. also with us, united steel workers president david mccaul. welcome to all of you. eomon, kick us off. >> for all the talk we have had for how partisan this country

is, last night's debate was a refreshing change of pace for a lot of people, because there was a lot of agreement between the two candidates, a lot of respect shown between the two candidates, although there was certainly some disagreement. but the key on the economy that we have to dial in on here is just how much protectionism both parties are talking about now. this is an area where there was not a lot of disagreement between both vance and walz here. and you look ahead to the future what that means, no matter who is elected president in november, i think we'll going to be dealing with an administration that is much more protectionist, much more populist on the economy than what we have been dealing, with even under biden and before that president trump. take a listen to what jd vance had to say last night. >> a lot of those same economists attacked donald trump's plans, and they have ph.d.s but they don't have common sense and they don't have wisdom. donald trump's economic policies

delivered the hottest take home pay for a generation, 1.5% inflation, and peace and security all over the world. so when people say that donald trump's economic plan doesn't make sense, i say look at the record. >> so the point jd vance is making there, economic experts in the past, in his argument, have been wrong about protectionism. and really what the united states needs is more tariffs, more protectionism. tim walz didn't necessarily disagree with that, as the governor of minnesota. he said he's seen that failure of economic expertise in the past and more or less agrees in broad strokes with a protectionist direction of the country. here's what he said. >> kamala harris has said to do the things she wants to do, we'll ask the wealthiest to pay their fair share. when you do that, more people are participating and folks have the things that they need. soz >> that is the biggest difference between the two parties. you do get a sense that there is

a real difference here on taxes, although i will say, kelly, that the trump campaign is really targeting its tax cuts to the working class. that's what the idea of no tax on tips is all about, no tax on overtime. the trump campaign wants to realign the republican party to be the party of the working class. harris and walz are fighting that off, and trying to preserve the union vote for democrats. that's really where the contentious points are between these parties. >> that's where we're going to pick up. with policies laid out last night, was it enough to sway voters to those that haven't decided? let's turn to darren von rooden of the wisconsin farmers union. darren, welcome. do you typically endorse candidates in the past? >> thanks for having me, kelly. no, we are nonpartisan group here in the state of wisconsin. certainly over the years, we have had numbers that would like

us to get into that sector of endorsing candidates, but we have not, so we won't this year either. >> what is the number one policy issue for you then that you want to hear either candidate say what exactly to tell you, that's the person we're going to support? >> well, how are their policies are going to affect what farmers are being paid and how markets are being affected. certainly, over the last three years, we've seen some uptick in prices, on commodities across the sector of agriculture. but the previous four years with the trade wars that we had, we're still feeling some of those effects here today, looking at the agricultural trade deficits. that's something that we have not had a three-year running deficit for quite a while. but we're seeing that currently, and looking at, you know, the dairy state, the state of wisconsin, dairy prices are at a

better rate now than they were during most of the trump years. >> so do you think then the biden administration has been better for dairy farmer than the trump administration was? >> well, you know, looking at the statistics, yes. you know, we have seen a better pay price, although looking at the overall outcome, our input has risen under the biden administration, but how much that is actually the effects of the trade wars or the effects of covid, you know, those are things that have to be looked at by farmers across the country. >> your members tend to be swing voters, the type that might have voted for obama and trump for instance? >> we have a few of those, certainly as an organization that doesn't endorse, we have members that are voting for all the different parties and certainly have quite a few that are in there. >> when you say that the biden administration has been more friendly, judging on kind of the price of milk, what about the

consumers who say, you know, we want you to make a living, but we would appreciate if that milk price could come down substantially? >> certainly looking at that, you know, when was the last time that the price dropped substantially on anything over the past few decades? but looking at what the biden administration has been doing, the anti-trust issues, monopoly issues, making sure that corporations aren't out there stealing from the farmer and then also not overcharging the consumer. >> has that been your experience? >> yes. you know, looking at what's happened of the last two years or so now, there's certainly been a lot more attention paid to the monopoly, anti-trust issues. when you look at the krog kroger/alberston merger being proposed, that will be not good for farmers, because with less

competitors, the price goes down. >> so you're interested in having a variety of suppliers that you have markets to sell to. darren, i can guess which one you're leading to, but any news? >> that's okay. i'll stay where i'm at. >> thanks for joining us here on "the exchange." let's head now to pennsylvania, with 850,000 members, united steel workers is the largest private sector union in north america. they count u.s. steel employees as members and have endorsed harris, but both candidates and the biden administration have opposed the nippon steel takeover, advocating for domestic ownership of u.s. steel. let's bring in the president of usw. david, welcome. >> thank you. good afternoon. >> why are you so convinced, i guess is the way i would ask it, when leadership says selling to nippon steel would save more jobs and create better income in the future, better

competitiveness, more job opportunities in the future, why doesn't that land with you? >> well, nippon steel has a long track record of dumping products in the united states, and our concern is about the long-term viability of steel making capacity here in the united states. not just for consumer goods, but for exposed automotive, tin products, and military grade. so we think it's a real issue around national defense and critical supply chain that we maintain operations here in the u.s. and we don't think nippon steel is prepared to do that. >> our nippon's operations superior? is its technology going to replace much of the way that steel has traditionally been made in this country? >> well, they have -- they have talked about transferring some of the production here in western pennsylvania and northwest indiana towards their

electric furnaces in arkansas. if we transfer that kind of steel making production, we won't have the ability to produce blast furnace steel here. >> so in other words, they would be moving it to a different part of the united states but you want to keep it in pennsylvania? >> it's not only moving it into a different part of the united states, it's also how steel's processed. >> right. and this has been an area where many analyst where is say nippon has done and their share price reflects that superior methodology. >> we would disagree. we certainly have another electric furnaces here in the united states where you can make the products needed, whether it's for appliances or other, but it's supply train issues. >> on the election, it sounds like both candidates would try to block this deal from

happening, but you cast your loyalties in the harris direction? >> well, in our union, we have a process called your union, your voice, where we talk to members. we have town hall meetings to find out their concerns and what their issues, hopes and aspirations are into the future. from that, we send out questionnaires to candidates, and based on those responses, that's how we develop our endorsements. in this case, there's been no question that the biden/harris team over the last four years and going on into the future talk a lot about the issues that concern us the most around employment, security, you know, economic security and retirement security. clearly, with the industrial policies that the biden/harris administration has put in place over the last four years, that's where long-term sustainability comes for our members in the operations they work in. >> now that we see certain

unions openly supporting trump, and they seem to be more openly courting the union vote, has that made it a closer call with your members or no? >> well, i think the election is going to be close no matter what. and i think all the polls tell us that. but look, our members, how they vote, that's their own personal choice. but what we talk about is what the policies are, and how it impacts them in the workplace. at the end of the day, it's about the policies, not the politics. so members will make their own choice based on whatever policies most will help them in the workplace. >> did the tariffs help -- we've heard a lot about bringing u.s. -- the industrial base -- bring it to the u.s. and protecting it here in the u.s. and growing it here in the u.s. we heard that from vance last night. so i'm surprised for steel workers themselves in your union, they would rate harris superior to trump in that. why is that?

>> look, tariffs are an effective tool to fight unfair trade. just to have a tariff does nothing but really increase prices. but when countries, other countries dump their products into our country and into our markets, below cost of production or they're subsidizing the other countries, that's what needs to be protected. to keep them from violating the fair trade laws that we have in this country. so they can be an effective tool, but it's not just something that ought to raise the prices to consumers overall. >> jumdzunderstood. david, thank you for your time this afternoon. coming up, we're on day two of the dock workers strike, and neither that union or the port ownership seem willing to budge. with no further negotiations planned, we'll talk to pete buttigieg about the biden administration's next move. administration's next move. "the exchange" will be

of 10 of our clients are likely to recommend us. our neighbors, the garcía's, love working with you. because the advice we give is personalized, back advice worth listening t. it's advice worth talking about. ameriprise financial.

the east coast dockworkers strike is entering the second

day, as neither union group or port ownership seems to be willing to come to an agreement. it's a huge hit to the economy. for more on how the biden administration is handling the situation, we're joined with secretary pete buttigieg and or morgan brennan. >> thanks for joining us, senior buttigieg, and why is the president not stepping in on it. it's been act -- so has the white house and so have i. what you president won't do is reach for the taft hartley act, because he believes the right outcome will come from the collective bargaining process.

that has produced results again and again, not just for our workers, bur on you economy. you see the historic contracts reached by the united autoworkers, for example, and other players. we have seen historic wage increases and benefits for worker, and simultaneously historically -- it's showing you can do right by those workers. that is definitely, definitely something that the economic would support here. over about a ten-year period we've seen the ocean carriers who really control the business side, so to speak. we've seen their profitable go up by over the same period, the workers are seeking to participate in that. we think the park are not as far

apart from each other as they may think. they need to work out a deal. i also know that economists are putting out a $5 million per day hit. you're talking about inflationary activity here, too, the longer the strike gotten on. the more costs incurred, that is directly going to go out to consumers. is there a point at which the administration would change stance and step in? >> if strike can be ended today. what that's going to take is the parties coming to terms. the companies need to put forward an offer that gets the workers to the table. again, such an offering would be compatibility with the remaining profit. we're talking about an industry that got unbelievable profits. there was a single year where the shipping sector took $220 billion in profits around the world. you have these ocean carriers, foreign ownership, but we've

been engaging them at the global level and north american level. they are certainly in a position to include workers to participate in this profitability. they could end this tomorrow. the other thing i do have concerns about is many have filed the paperwork to introduce surcharges related to the strike. if they were to do that, while the surcharges would, in the first instance be slap on whoever is slapping cargo, that would trickle down to the consumers, and i sent a message they should not be doing that, not taking advantage of this situation. they have already seen eye norm out windfalls, the scare news, it is time for that profitability to be shared with workers. >> were the surcharges a method of prioritization? if there's going to be much less activity taking place, how are you supposed to figure on out

which goods are shipped around the country with whatever limited availability there, as long as this drags on? >> what we have seen right now is a lot of this just padding the bottom lines of the companies. you look at the red sea disruptions and some of the other issues that have created more of a pinch on the supply of space on the shipping, issues with water levels on the panama canal, the mississippi river, not being where they're supposed to be. we see consumers feeling a crunch, and we also see an unbelievable ben bit. we're happy for the companies to do well, but they're doing well either way. the point is for them to come to terms -- from what i can tell, the proposals from the east coast dockworkers are shooting to get that are wage increases in the neighborhood of the ones reached by the west coast dock workers. that didn't lead to a strike

that's compatibility with profitable shipping companies. the east coast dockworkers during ko individual, many dies on the job. they're also for their share. >> they're asking for a freeze on automation. you've been tasked to dole out millions in infrastructure, how would a freeze on automation keep american ports competitive? >> importantly, there are already provisions like this in the last contract. i've traveled around the world, study hout some of the other ports work. notably a lot of port braise are very high tech, but they were able to get that implemented in partnership with their trade unions in a way that didn't lead to any job loss. i think those are the kinds of protections that these workers are interested in as well. they want to be safe. they want to work with good safe technology, but want to be sure it's not being used to squeeze

their livelihoods out, again especially at a time when you see just unbelievable levels of profitability. we're talking about individual shareholders of some of these companies who personally made more than what was paid for the entire work force, just to give you a sense of proportions. >> it sounds lice theant wants it done now. >> absolutely. that's what the president wants, certainly what i want. we're in constant dialogue, come to the table, get a deal, and t'en the ports. les get this done. transportation secretary buttigieg, and morgan brennan, than i. that does it for "the that does it for "the exchange." and transparent advice.

every day, over a million multi-millionares trust schwab with more than two trillion dollars of their wealth. that moment you walk in the office and people are wearing the same gear, you feel a sense of connectedness and belonging right away. and our shirts from custom ink help bring us together. we make it easy to wow all your groups with high quality custom apparel and promo products, all backed by our guarantee at customink.com.