what about a guy like ron baron and tesla. >> it was the first time i heard of strong institutional argument. it's really on the retail side for a trade. i think that was good. i think it gave validity to the story going forward. >> i think he's extrapolating present trending assuming things will be linear. they will not be. this is going to be a tougher business than easier business. it's a tough call. >> guys, good stuff. "power" starts now. ♪ ♪ >>> once again, we've got some pretty big moves and commodities today. oil off session highs but above $51 a barrel. gold hitting the highest level in nearly a month and look at the action silver up almost 4% today. welcome to "power lunch." i'm melissa lee with tyler and michelle and brian starts us off with a look at oils run. >> yeah, let's talk about oil. crude oil on the highest level since last july and with us cnbc contributor and partner with again capital. john, we love you, you know that. >> thank you. >> i'll throw you

>> first, i'm a tremendous fan of ron barre baron. he's an extremely shrewd investor and has made money for himself and investors. tesla is still a coin toss spinning in the air and i they're lon musk has done many things which he should deserve credit for, mainly establishing the brand tesla and a certain demand for electric vehicles that did not exist before. how however, whether they work is still unknown. >> good to have you talk with us. appreciate it. mike jackson, ceo of autonation. >> let >> let's take a break. the dow sup 15 points. we're wondering if it can close above 18,000. the bet is probably know. >> kamara is ringing the bell. details are coming up. >>> also ahead, silicon valley may not be a stronghold of donald trump's but he has a loyal following there and josh lipton speaks with them coming up next. (speaking japanese) oh watson, your japanese is very good. thank you. (speaking japanese) exactly. i can understand nuance, context and idiom in seven languages to help companies all over the world with everything from

one is still walking and the other one can't walk. >>> turning to legendary buy-and-hold investor ron baronnerated a total return of more than $8.5 billion just in the last 24 years. ron barron is the chairman and ceo of barron capital and joins us with his outlook and strategy. it's great to see you. thank you for coming in. >> great to see you. congratulations. >> thank you very much. >> i think about you as an optimist. when i put it in perspective i think about you as a realist. what you are saying makes sense. you have proven it. it holds out over time. every time you come in, you give us a pretty optimistic view of what's happening. what is your view right now? >> i am a very optimistic person. i have had a dream my whole life. i was watching the other night robert kraft, who is a friend of mine, gave a commencement address at toshiba university. he was talking about how he was sitting in the third or fourth row of a patriots' game and they were about to move the team to st. louis. he said i would like to buy this team. they could do so much better if we owned the team. and he went ou

trading after ron baron predicted the company will become one of the world's biggest over the next itade or two. reaching a market value of about $700 billion. barry capital management holds 1% of tesla shares, valued today at $325 million. the 23-year-old says there is no competition for the electric carmaker and he expects a return of six to -- 6 billion dollars to $7 billion over the next 20 years. the new zealand interest-rate cut this week are waning. economists' views are also makes come expecting the rate will be held to 2.25%. that is a look at some of the stories making headlines. angie: the u.s. and china have wrapped up two days of talks in beijing, agreeing to give the yuan a foothold in america. they also sparred on excess capacity in chinese industries. ok progress, but still -- ramy: there are so many issues between china and the united states. economic.tegic and the strategic side, they talked about north korea up and they talked about a lot of geopolitical issues. they talked about the south china sea, but nothing in the committee k. on the economy, -- the communique.

the singer is known for her call for hong kong's -- billionaire investor ron baron is predicting thatla motors will become one of the biggest companies in the world, growing the fold in market value. his market sent shares higher. baron is one of tesla's biggest investors. his company has a stake in the -- market value. to unit is facing more bumps in the road and the state is -- the companyir says the issue can also affect the radio. francine: caroline hyde with the latest on corporate stories. the ecb iss set -- said to have [indiscernible] sally bank well joins us. you have been covering the story closely. geraldine sundstrom is still with us. sally, he looked the balance sheet, it is rising. this is a great chart, courtesy of my great inducer. -- great producer. is there enough bonds that you could i corporate? sally: that is the question on everyone's mind at the moment. the market is incredibly liquid. ou can buy insurance and companies on a bank. there is not a lot out there for it to buy it analysts are saying in its to buy 5 billion euros a month and noted for the program to

also the investors, ron baron, what the fed is going to do next, he doesn't really care.ng to happen the next ten years. we'll have him on. talk about "must reads." if you haven't read it already, from "vanity fair," she has a piece on "vanity fair" it's a look at what's happened at valeant. it's fascinating. including an atlannti antidote arrested. and you can a key onanalyst of e company and looking out other way. >> i've only got time to read either that article or the other. which one should i read? >> the bethany piece. and later son, if we have time, you want to think or relax, maybe you can pick up my column. >> in fact, i'm kidding. on "squawk box," we start in 12 minutes time. >>> coming up next, odds for a fed rate hike this summer dropping further than janet yellen fails to include any new moves. michelle garrard will join us new york stock exchange weigh in. you're watching cnbc. first in business worldwide. >>> welcome back to "worldwide exchange." joining us this morning, mitch alley girard, chief economist and managing director at girard. we're calling this

that is if you ask billionaire ron baron, who predicted the electric car company will become a $700 billion. his comments sent tesla shares of the most it's february. we should mention he is one of investors.gest these days, it may seem like hp enterprises constantly transforming. since it's break away from the computers and printers business, servicelso spun off its business. ceo meg whitman suggested more deals in the pipeline, potential partnerships with the likes of amazon and google. we caught up with the hp enterprise executive vice president about how these recent moves are shaping the future of the company. >> as we announced last week, this is also an exciting part of our strategy, which is basically to spin and merge our enterprise services business to create a. that is play company focused on helping customers through the journeys. this is going to create a very sizable scale organization that really is at the core of what customers need in terms of helping them did -- digitize their businesses, help them implement hybrid i.t., and also .elp migrate applications we also focus on

the stock surging to the tune of 5% this after billionaire long-term investor ron baron had this to saybout the stock. >> i think this is one investment we can make $6 billion or $7 billion in profits. there's a very good chance i could own this stock for 10, 15, 20 years. i think this could be one of the largest companies in the united states, and the whole world. >> one of the largest companies in the whole world, pete. >> the most interesting part about it, not only the 10, 15, 20-year plan he talked about, but the competition and the fact that tesla, they would have had competition five years ago, but he believes right now they don't have competition anymore. and he talked about the battery factory as well. matching what the car sales are. $300 million investment presently that he thinks could be a 6 or $7 billion number in 10, 15, 20 years from now. >> you eat that up, pete? >> i also saw an incredible amount of call options in there trading today. incredible. each strike all the way up. it was amazing to see how much volume was coming in there today. it took a little while, but it

. >> and ron baron with a $500 billion stake in tesla, and he told squawk about it this morning, andaid he is in there for a long chance. >> i think that i could own it for 10 or 20 years, and it could be one of the largest companies in the united states and the whole world. >> all right. that is long term, 15 years. >> 10 years or 115 or 20 years, and talking about the $300 billion investment, and what he talk talked about was the giga factory, and he thinks that the car sales in a year from now or two years from now, $20 billion and some of the numbers are extreme, but he has a long version, and $210 average and the stock is right, there and if you believe what ron is talking about and willing to hold out, it could be a huge, huge winner. >> and meanwhile, ralph, store closures, job cuts, and this is a mess. down more than it is now, and still, a bad day. >> yes, today is the investor day of may overage. and now, you have the ceo clearing the deshgs and he has great experience, and great experience of bricks and more tor like h &m and the old navy and remains to be seen, but this a