jamie diamond you're all the big boss christi when you work for j.p. morgan chase real quick chris you've only got about thirty seconds can you tell me do you expect these larger point angeles to to sions like j.p. and others will ultimately get into the crypto space i do think that qatar currency trading desks this year they were part of it so i definitely think the banks would have to have some sort of cut the currency footprint to still be able to offer their investors like a different form of asset that they're interested in thank you both kristie either co-founder and managing partner jeffrey we're going to have you back we love having you on. part of jeffrey jeffrey talk editorial director of the american institute for economic research thank you guys thank you very much. and it's time now for a quick break but hang here because when we return we have the latest on the battle in seattle as amazon and starbucks successfully opposing it to alleviate their horrendous homelessness problem will be joined by seattle city councilwoman to promise the one

. >> howard schultz, jamie diamond, mike bloomberg, if we get those kind of people to say, hey, he wonnd i can win, we're going to dramatically open thep of talent for people to become president. and by the way, that's g >> and is that got us thinking about how business backgrounds could play a role in public. offi joining us now is jeffery sonnen feld from yale school of management. nice to see you again. >> thanks, hi, bill. >> does it matter whether or not the business executive and we've had many business executives transfer into govnment roles, does it matter whether they come from a private company or a public company? does one give an advantage over the other? >> that's a great question. you know, that wa the fine point in andrew ross sorkin's interview wh howard schultz today, that he wanted to make that point without coming across inke he is sta up a slug fest with the president. sting that a,g you know, a mid size family business as the trump organizatiha is,has some global reach, doesn't, you know, maybe a dozen countries, compare to the magnitude of what starbucks has in 75

have been asking for exposure to this asset class and banks have kind of been dragged into it jamie diamond two thousand seventeen september a call that a fraud and then two weeks ago just hired a head of strategy and that's happened over and over again a look at goldman and so and it's because of that demand from their clients that's not a top down strategy that's bottom up and that goes with. what crypto. and blocking as a bow marks i have an idea what you think about that but do you think they have something to break this base or should date just not know the data they really nothing no value to add to it to the space and was the financial times this morning said half banking jobs are going to be eliminated came up all the back office ship blah chambersburg going watching is great for banks because they take all those back office jobs of matching trades i was a stockbroker for many years and the whole antiquated system of matching trades and clearing trades is unbelievably byzantine and so this is all going to be done away with with block say ok so that's half the banks gone what about t

right now >>> thank you, scott it's the big headline making interview of the day warren buffet and jamie diamond weighing in on the markets, economy and trade and why publicly traded companies need to scrap quarterly profit forecasts. >>> america is slapping china's zte with a billion dollar penalty in the deal to end crippling sanctions. wilbur ross announcing the news here on cnbc, but did the u.s. go far enough? >>> everything amazon, scoring a big win over the battle for streaming sports get your game face on, power lunch starts right now >>> welcome to power lunch i'm sara ooeisen. both the nasdaq and the s&p are on track for a fifth straight day of gains but utility stocks are on pace for their worst week of the year nisource leading the declines there. the etf that tracks china on pace for its seventh straight day of gains on pace for its second straight weekly gain. >>> thank you very much. welcome, everybody, i'm tyler mathisen mcdonald's planning a new round of layoffs it did say it's getting rid of management layers to streamline the company. so how are trade tariffs affecting u.s. bu

have been asking for exposure to this asset class and banks have kind of been dragged into it jamie diamond two thousand seventeen september call it a fraud and then two weeks ago just hired a head of strategy a.

. >> lou: can you imagine what paul ryan said to jamie diamond and the coch brothers?ises to them. heap's bought and sold out and there is no contract for america. it is just business and wall street and the koch brothers and as long as he's in the office, congressman, you don't have a chance. >> i will keep fighting and i want to know where the republican party is on this issue? take public votes. i will say there is a lot of special interest in this up to that simply want cheap labor and how criminal it would be for us to neuter the tax cuts. we promised rising wage and tax cuts. >> lou: no doubt about it, the american people will not be satisfied with anything other than the construction of the wall as proceeding amnesty of any kind. i salate you congressman gaetes. you are only voice to say it like it is for the speakership of paul ryan. >> lou: up next, full report on crazy california. you got to love that left coast. straight ahead. ♪look into my eyes ♪you will see ♪what you mean to me ♪don't tell me it's not worth trying for♪ ♪you know it's true ♪everything i do

have been asking for exposure to this asset class and the banks have kind of been dragged into it jamie diamond two thousand seventeen september called it a fraud and then two weeks ago just hired a head of crypto strategy and that's happened over and over again and you look at all men and so and it's because of that demand from their clients that's not a top down strategy it's bottom up and that goes with. what crypto and law changes about marx i have an idea what you think but do you think they have something to bring to this space or should you not know. they really nothing no value. to the space and financial times this morning said after banking jobs are going to be eliminated came up all the back office ship versus big going watching is great for banks because they take all those back office jobs of matching trades i was a stock broker for many years and whole antiquated system of matching trades and clearing trades is unbelievably byzantine and so this is all going to be done away with with block say ok so that's half the bank's gone. what about the front office the guys who just sit the

these other two guys say let's try teladoc >> that is an excellent question, a great question for jamie diamond i will put it to him and there is a famous tv doctor, look, teladoc is a way to save money. >> this is definitely a wave we are past the point of inevitability for virtual care. >> i have to tell you, you are a visionary and i love what you are doing. and a lot of tt is suffused by the fact that every single person on twitter says you guys are great. ceo of teladoc, check my feed, everybody loves the thing. "mad money" back after the "mad money" back after the break. have parents who are trying to get their kids off of too much social media and computers, and then we have parents who would only hope their children have access. middle school is a really key transition point, right. the stakes start changing. students begin to really start thinking about their futures. what i like about verizon's approach is that it's not limited to just giving kids new tools, it's really about empowering educators to teach in different ways, and exposing kids to more active forms of learning. giving te

. >> and not health care remember when health care like jamie diamond and warren buffett were talkingbout how it's taking too much of the economy well, the economy here is broad based. and i don't know i've never seen in my lifetime anything like this. >> really? >> yeah. i've never seen anything like this. >> this is real. >> early '90s -- >> yeah. this is -- we are in a position now where it's every sector. it's every sector. i mean, that's extraordinary mining yes, we've had periods where it's easy to find the job but do you really ever have -- >> the job growth? >> you have wage growth and inflation low and tremendous job growth it is what the stock market wants. you can have inflationary growth. >> if you have the pool of willing labor shrinking continuously or, you know, available workers, i think, for another 213,000. how come we're not seeing wage growth even more >> union pacific had its investors day they're paying $10,000 bonus. i call it a bounty the ceo calls it a bonus to find the people and, by the way, when you get ceos offline they say that same thing i said about par

right now >>> thank you, scott it's the big headline making interview of the day warren buffet and jamie diamondeighing in on the markets, economy and trade and why publicly traded companies need to scrap quarterly profit forecasts. >>> america is slapping china's zte with a billion dollar penalty in the deal to end crippling sanctions. wilbur ross announcing the news here on cnbc, but did the u.s. go far enough? >>> everything amazon, scoring a big win over the battle for streaming sports get your game face on, power lunch starts right now

. >>> meanwhile, jeff bezos, warren buffet and jamie diamond name a new ceo bertha coombs joins us for >> amazon, berkshire, and jpmorgan are winning praise for appointing him as the ceo of that new venture the brigham women's hospital surgeon is a well-regarded thought leader and writer and innovator, founded the labs incubator in boston which focuses on improving health system processes he talked to becky quick how we need to improving health outcomes and lives >> even in the united states we have a 20 plus year difference in life expectancy between whether you live to your early 60s or 80s depending on what city you live in and income bracket you're in. >> so while bezos and company talked a lot about lowering costs for employees and using technology, what's striking is that gawande is not a health tech advocate per se he's one of the brightest minds in health care but he needs to come up to speed when it comes to things like commercial insurance and plans in order to succeed in this. guys >> definitely going to be a transition of sorts for him. that's for sure. bertha, thank you. >

this jamie diamond and warren buffett op-ed is powerful, not just for what they're callyear for but whois calling for it. so as we heard earlier they're probably doing guidance, i think that's interesting. >> guide dance being -- how does that distinguish from quarter i reporting so the audience understands. >> you're saying this is how much we expect to earn, and if you don't meet that target, you feel enormous-under and that's right some evidence if you're just below that target, you're going to engage in share buybacks to boost up your stock, and even skeptics about addressing buybacks, acknowledge this as evidence. so, i think that these are not really strong proposals. we're talking but an -- many of the sec safe harbor, talking but changing the way companies talk to workers. not talking about radical revisions in the tax code. so i've mentioned a few ideas but i think this is a sufficiently big problem that it warrants sufficiently big solutions. but there's lot we can do on the margin right now. >> alice son, whether they're from just -- allison. >> we're work with companies and

but america at large and that's one of the reasons there have been so many people wondering if jamie diamond he said he's not warren buffett said he's not running for president either but we talked about what howard shultz had to say when he announced he's stepping down as the chairman of starbucks and just this idea that howard might actually be running for president. i think they are both in favor of the idea of ceos getting involved in policy but both seem to indicate it might be difficult for somebody who has been a ceo to do all the things that it would take to run for president. >> if you want to do it, i applaud it i'm not sure it's hard i saw howard i think the world of howard. he would be a great chief executive or governor or senator, whatever he wants to do but it's hard. and you have to want it. >> warren, your thoughts >> most business people would have trouble starting out a year early in iowa and going from motel to motel and repeating themselves six or seven times a day and listening with great interest to every possible voter as to what their suggestions might be so i'm not

buffett and jamie diamond urging companies to do this.one out of five do it anyway is that going to make your job a lot harder sns going to make it a lot easier as a portfolio manager. we're long-term investors. we do follow the trend of not only earnings growth but cash flow growth. but to get ultramyopic about a quarter by quarter number for me is absolutely insane >> and it's a number that -- not the estimates. >> it's the numbers that count over a longer period of time and what we're looking for are companies that actually are going to invest in their business and get a high return on that investment and actually create sbriintrinsic value. what happens today is that companies get penalized for actually investing in productive projects that perhaps will take three to four years to pay off, and that's hence the reason why you're seeing this outcry. >> let me get a quick thought from barry on that same subject. is this going to make your job easier or harder or no different. >> it makes it easier in a lot of ways. we don't use those pro

if we had job growth it would be in health care to me, it was the segment of the economy that jamie diamondt felt had gotten out of control these are numbers in construction way wasn't a good weather-related month and construction was 25,000. it's just great! and these are just great numbers. >> is that number to overshadow any of the concerns we've heard about what is happening in europe about what is happening with our trade talks and trading partners here. >> no, it's not. and what happens is this is whoever speaks last. if macron comes on now i care more about macron than micron whoever speaks last can hurt this market. we have no -- we have no memory whatsoever for what is in front of us and, you know, five minutes ago. these numbers are great and the most important number we get is employment thank you for the great work you've done but i have to tell you it doesn't matter. if someone says something bad about new tariff or something the president tweets about german cars, then everything is wiped out. >> jim, were you looking forward to the number today? i was looking forward to it. >

diamond have criticized earnings guidance. they signed ar back in 2016 which addressed the issue and advocated for better corporate governance standards. >> and it is not just warren buffet and jamie dimon who are proponents ofti elimi short-term guidance, tesla's ceo elon mus had some thoughts on it as well recently. >> get too focused on like what's happening in the space of a few weeks or a few months, there's an old maxim of investing. you should not be focused on short-term thing. >> back in 16 blackrock ceo larry sink sent a letter to 500 ceos urging them to stop providing quarterly earnings forecasts. so should companies provides investith short-term guidance? whore joined by william lee says, no, not always and another gentleman w says s, companies should. gentlemen, nice to have you here. a pleasu. rahan, i'm going to start with you. i think mr. buffet and mr. dimon id out the reasons why perhaps you should not provide as a ceoh t-term guidance. briefly tell me why you think most companies should? >> there are a number of reasons. firstf all, let m point out that most ceos would prefer to put out asittle information as possible. they would prefer to put out only what's re