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tv   Power Lunch  CNBC  May 13, 2014 1:00pm-2:01pm EDT

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>> we are hitting the road, joe, we'll see you live. we're headed to vegas for the salt investing conference. the best ideas from wall street's smartest investors, tune in starting at noon and 5:00 tomorrow. that does it for us, see you on fast tonight. "power lunch" begins right now. . halftime is over. "power lunch" and the second half of the trading day start right now. >> melissa, thank you very much. the s&p 500 fresh territory, 1900 for the first time, earlier today. the dow also setting new highs. how much higher if at all can we go from here is a big pullback ahead? the key levels you need to watch now. epic rally in utilities, one of the ten sectors leading the charge are those stocks up 10% so far this year despite the recent sell-off. what is fueling utilities? is there more room for them? the real health of housing. the one reason why people are not buying homes.
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plus whats nation's two biggest home financiers are doing now to make it easier for you to get a mortgage? first, though, let's check in with sue on the record-setting day. >> it sure is. it's kind of a slow and steady march higher. the rally is moving on. as you mentioned, hitting 1900 for the first time ever. here are the numbers you need to now. dow jones industrial average up about 21 points. s&p 500 is just below that 1900 mark, up about a tenth of a percent. nasdaq composite is negative by almost a quarter of a%, a look at the yield on the ten-year note. we will see that the yield last time i checked was. there's the comparison. we'll get you the yield in a couple minutes, 2.614%. thank goods in for the ticker. as you can see. dominic chu is here with me. kind of quiet lirks a slow and
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steady move. >> i just got done with a conversation, speaking with art cashin. he says it's interesting to watch the action today, specifically in two parts of the market. one is the nasdaq composite. one is the russell 20 on 0. we're flirting with record territory again, but if you look beyond that to just the nasdaq composite, the intraday, also the russell 2000, you're seeing some underperformance. giving some of that back, those could be possible leading indicators. if you look beyond those particular parts of the market, check out some of the signs of the momentum stocks, the netflix, the amazons, the teslas of is the world, biotech is down marginally, but maybe they're finding a base. now, the two -- these sectors are in groups that are helping things along, two more interesting once. if you look at the food products
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companies, names like keurig green mountain, far and away the best performer today. also conagra, mondelez are doing wet. the other one is interesting. check out the rail stocks. look at csx, norfolk southern. >> those are my favorite indicators. >> they're all moving higher in the days. they're among the best performing stocks as an industry group. if you look at those, hey, that's a pretty decent sized moving. and backed right off. it's interesting because we only say a lot of the traders are still talking about what happens at the action. just to see what the sense is. >> fantastic. art is always one of the most insightful people. dom, thank you. see you a bit later. s&p 500 hitting the 1900 mark for the first time. which sector is leading the way? check out the utilities.
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they have been beaten up recently. how much move room is there to run? seema mody is taking a closer look. hi, seema. >> one is boring. utilities have been the hottest sector of s&p 500, up almost twice as much as any other sector. the reason, solid dividends combined with strong earnings growth. they beat expectations in q1, utilities this quart had their best earnings growth sin 2005, the harsh weather conditions earlier this year helped the countries by creating a surge. will the rally in utilities continue? a mixed pin on the street. a grows number of analysts, they say utilities could start to look overvalue d to sell off, bt open hyper remains positive s. saying if this summer shapes up
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to be really warm, earnings could surprise to the up side. important to note, though, s&p 500 hitting new highs, utilities have cooled off a bit over the past one week. sue? >> seema, thanks so much. let's stay in ec and go to sheila for a market flash. >> check out shares of kohl's coming off session lows. the chief executive is planning a management shake-up, according to "wall street journal." this comes at a time when the company is trying to jumpstart sales s. looking for a new chief merchant who could ultimately succeed him. kohl's currently in the green right now himplts thank you very much. the marx war looking a at barron's just for fun, we also continue to get some mixed messages on the economy. who better to put it together for us than steve liesman. retail sales are worrisome. >> a hefty revision to last
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month taking much of the sting out. for now the data suggests a pause in computer spending growth, not a retrenchment. here are the details. retail sales up a paltry 0.1%, missing expectations s. the core, the part that feeds into the gdp calculation down a tick, look at the march revision, up 0.4% -- i'm sorry, that's my mistake from 1.1 to 1.5. spending moderated in april after a strong finish to q1, but the net result is still a good start. bank of tokyo says net net consumers are down, but not out. the momentum of retail spending is enormous. finally ubs says the late easter added volatility and softer april is not a signal of fading consumer demand. now our wrap it up, where we take the data from today, the inventory, we plug it into the calculations with our help from
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moody's analytics. 3.6 is still the tracking, and minus 0.4, down two ticks is the tracking for the first quarter yet to be revised. in other data, small business optimism rising to the best level since october of '07. remains week. the new york fed saying consumer credit delinquencies falling to the lowest levels since 2008, that came with a drop, but also noted a very weak gain in mortgage origination, i think april is a pause, i don't think it's as big of a snap back as we expected, but that lat bit of data, it tells me that the consumer is in decent shape to propel spending in the months ahead. >> nice tie, i like it. >> you know, you're copying. >> let me ask a question, great one. >> not about ties. >> you see the phrase net net. what does that mean? >> when you take out all the
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other stuff. >> why not just say net? why say it twice? >> the phrase is actually triple net. that may come from real estate, you take out three separate things. i'll call nigh real estate buddies. >> that's tennis. >> tennis, not finance, but i think they have their similarities. >> sue, down to you. diana olick is on line 1 for steve liesman. >> there is a triple net. another day, another record, and what about putting money to work overseas. joining me is dan moreries, with $500 billion in assets under management. as you can see, kenny polcari is here as well. cnbc analyst. dan, i'm going to start with you. we have these equity markets that continue to march higher, but the big debate is where the rest of the world is in relationship to the united states. we have big gains in the
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shanghai index, but then poor data coming out of china. let's start with china and go global. how do you feel about it? >> i think we're looking for the u.s. to lead a bit. we know the fed will be supportive, so the question is when will the rest of the world catch up? if we look at emerges markets, on the one hand i like the valuations, but a bit worried about the make roe environment. that will be hard, and we also don't see the earnings momentum we would like to see. >> here at home, kenny, we bumped our head against the 1900 market. >> a close of 1900 would be psychologically a really good things, but what we're seeing today is a bit of exhaustion. you thought if you went through 1900, you would get this huge momentum and people were so excited we went there, and everyone went, ah, and just sighed. >> at least we got there. >> that's right. we got there.
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the market feels good. today's eco data may be disappointing, but i think overall, it does feel like this recovery is coming and it does feel like the second half of the year will be bers. >> then they moved out of the japan. it's kind of been left by the wayside, but you still see value there? >> if you picked up what was going to happen, it's been more disappointment, very similar to what we had in 2005 when the prime minister promised a lot of reforms and didn't deliver. so the question is will we see the same thing? japan? >> valuations are much more attractive today, japan is trading under 13 times, so that says there's an opportunity there. even in he doesn't get everything he's looking for, we think there's a potential for the market to turn around. >> what's your favorite part of the globe?
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>> i really like the u.s., and probably japan as a potential you could see some up side there. >> thanks, gentlemen. appreciate it very much. ty, up to you. three big stories on three big dow component today, at&t, fizers and ibm. let's start, though, with at&t, the company reportedly in talks now to buy the satellite television provider directv for close to $50 billion. that is sending shares of directv much higher -- well, i guess not. down now about 60 cents. at&t off by about 38 cents. then there's pfizer, its ceo grilled by the uk lawmakers over the plan to buy astrazeneca. meg tirrell is on that story. first let ales begin with morgan brennan on the at&t/directv talks. >> hi, tyler, 92 to 94 a share. that's how much at&t could pay
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for directv if the reports are correct. that would put the price tag at just under $48 billion. the companies aren't commenting, but a deal could be reportedly reaped within the next several weeks. what would at&t actually get for that price? for starters, expanded reach in pay tv, combined it could offer a triple play package to almost 27 million subscribers right now the u-verse products only reaches about 5 million, and they already partner in certain markets. compare that to the 30 million subscribers that cnbc's apparently company comcast would have of its own merger with the time warner cable goes through, plus directv's programming, which exclusively includes the nfl sunday ticket. that contract ends after the upcoming season, but a renewal is reportedly in the works, and expected to come with streaming rights. that's what makes this deal important to directv. as more consumers seek bundled
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services to watch tv and use internet to stream video, this gives its subscribers to access to the faster, broadband infrastructure, also a reason why competitor dish network is the third company to watch. dish will now have to find a way to compete with that if this deal goes through, tyler. >> morgan, thank you ver. megan, both ceos over in london today getting grilled on this proposed deal. >> really getting grilled. theres a lot of concern over where the proposed deal would preserve british science and jobs. pascal sorio saying in an interview you would have to consider any offer, but the concern of the company is the merge ser would be distracting to their r&d. >> when you implement a merger of this size, you disrupt people's lives. you create anxiety in employees' minds, you distract them from the day-to-day work. some of our projects are so
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critical and need to move so convictly to bring them to patients, but also to create value for our shareholders. so any distraction would actually be a problem. >> so hearing that astrazeneca's focus on the potential disruption, fizers earlier got many questions about keeping jobs in the uk, stressing that the company takes the issues of consolidation very seriously. >> let's be very, very firm on this issue. we don't makes decisions lightly about changing assets or closing assets or asking people to leave the company. we understand the impact of on the company and the people leaving. what we do is try and create a company that can be successful, and succeed and get products to patients. >> now, the question here, of course is does pfizer come back with yet a third offer if already put on the table. >> meg, thank you very much. a beautiful day in london. did you see how sunny it was? that doesn't happen over there. meg, thank you very much. third big story involving big blue. our david faber getting as
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exclusive with ibm's ceo jenny romet rometty, her first tv interview. david, it was a great, and i do underscore, great interview. he asked her about where she's focuser for growth. listen. >> around data, $16 billion up 9%, around cloud. we event the last year -- high growth, up 69%, and this whole area of engagement, because to enterprise clients, this will hain in the balance. so important to have. >> free cash flow of $15 billion, we're able to do the investments, for today, for the long run, the future, and able
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to return value. >> plenty of value, not much growth in ibm's stock over the past year. in fact, down 5.2%, as the industrials are up 10.7%. sue? >> ty, are the markets rigged? that was a big discussion that we had not too long ago right here on "power lunch." now, senate lawmakers are holding hearings today into the impact of high-frequency trading. cme group executive chairman terry duffy was there, he testified at that hearing. we'll talk to him about whether he believes the markets are rigged, and what can be done to level the playing field. he joins us first on cnbc. see you in a moment, mr. duffy. whon a certified pre-ownedan unlimitedmercedes-benz?nty
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i also think -- let's do this. oh, that was our big fight here on "power lunch" back in april, between president bill o'brien and brad katsiyama over high-frequency containing. the senate agriculture committee holding a committee on hft, and how they can ensure the market is free and fair. joining us is executive chairman and president terry duffy. he testified before that committee this morning, and also my partner eamon javers, who's been covering this topic for
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some time for cnbc. thank you for being here, mr. duffy. >> thanks for having me. in testimony day you said the markets are not rigged. could you elaborate on that? and also talk about the differences between equity trading and high frequency trading's role in that and futures trading. >> okay. i do we are talking about a $23 trillion market. that's hard to say that that is rigged. i think the allegations by mr. lewis in his book and that on "60 minutes" is people were front-running clients. if they were front-running clients that is against the law and should be punished, but that doesn't constitute the rigging of a marketplace. if you look at the difference at what i do at cme versus what the equity markets we have, we have
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a vertical silo in. the only one that knows that trade is being put on is the person who entered in that trade until, the allegations in the book and the allegations on questioner 60 minutes" is someone enters an order, it goes to multiple different platforms, and then gives people an opportunity to get in front of it. i'm not saying that's true, but that's what they're saying is going on. >> terry, we have the strange spec cal this morning of a congressional hearing without any actual high frequency traders there at the hearing. you have a business relationship with thinks high-frequency traders, you were asked tothat relationship. i wonder if you wish some of those traders had been sitting next to you. >> i didn't think it mattered either way. i have an obligate to support all participants. high frequency traders, so what we are trying to do is create
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deep pools of liquidity so people can do the risk transfer in the most cost-effective basis. i think all parts pants are important for that to happen. when a price goes from 7 to 4, the markets are deep in liquid. if it's high frequency traders providing that liquidity or a point-and-click person, that's critically important. but i represent all participants in our marketplace. >> i read your prepared testimony. you listed some of key differences between how things function in chicago on the cme and how things function in the equities side of things. you know, you talked about price banding, maximum order quantity, stop logic functionality, things like that. of those, which do you think, which do you think are the most important in keeping the market free and fair? >> well, i think they're all important. we continue to add new enhancements. when you look at stop logic
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functionality. when we had the flash crash in may 2010, and the market went down, our stop logic functionality kicked in, stopped at the markets, let liquidity replenish and started the marx gets again. in the ecwithities world, it went down to penny, that can't happen in our world. i this is the stop logic are critically important in where we live in today's word with technology going after such quick speeds, you need buffers in there to protect the public. >> with the publishing of the book high frequency trading, went to a different platform in terms of the public knowledge of it. do you think it has spurred any appetite on capitol hill to address some of the issues in the market? >> you know, i'm not sure if it has or not. i guess that's yet to be seen. today was the first hearing we've had.
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my main focus being here in washington at this hearing is that they don't come out with one brush, if in fact they decide that certain things need to change. there are certainly market structure issues that don't apply to the futures world. if they're going to do anything, make sure you have two brushes, not one. >> all right. on that note, thank you, mr. duffy. always a pleasure to see you. eamon, thanks as always. >> thanks, sue. let's send it up to shielda for a market flash. >> is going directly to the company shareholders, asking them to vote on the joint bid with valiant pharmaceuticals, they do own nearly a 10% case in allergan. it is trading higher today, and ago for valiant, which implied it was willing to raise its offer, currently trading also slightly higher. still ahead, our nation's military is changing, so what
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will it look like in 25 years, plus news on the housing front. hi, di. >> hi, ty. it could be a crack in the credit crunch. big moves from federal regulators. that's next on "power lunch." ss. over 400,000 new private sector jobs... making new york state number two in the nation in new private sector job creation... with 10 regional development strategies to fit your business needs. and now it's even better because they've introduced startup new york... with the state creating dozens of tax-free zones where businesses pay no taxes for ten years. become the next business to discover the new new york. [ male announcer ] see if your business qualifies. but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea
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cantor fitzgerald repeats its buy rating pointing out the new product initiatives, but the stock is getting hit hard today, and for the year, tyler, down more than 34%. >> that would be splunk right there. regulators finally responding to i kroos of tough credit stalling the housing recovery. diana olick is in washington with details of big changes coming. hi, di. >> hi, tyler, credit is too tight and too expensive. those are the claims of housing industry leaders and now they're getting action. first mel watt announced he will not lower the loan limits for fannie and freddie. his predecessor, who focus odd shrinks thor mortgage giants had considered that. >> this decision is motivated by concerns about how a reduction would adversely impact the current health of the housing
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finance market. >> now, lowering the loan limbs would have hit higher cost states like california and new york much higher than others. as for.-backs to banks, he said he would relax some of the requirements for relief from those so-called reps and warrants and clarify some uncertainties. watt will direct fannie and freddie to move toward a single security platform. finally, he didn't exactly that's some that ed demarco had refused to do. hud secretary sean donovan announced that the fha, which is the government's mortgage insurer would reduce insurance premiums for borrowers who participate. this could help may fha loans more artable. fha share has dropped amid those higher premiums. this comes with new reports that
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housing affordable is weaker than previously thought, points to make metros like san francisco where barely 14% of middle-class residents can afford a home, and goldman sox looked at first-time homeowners who are hit with the higher rates. we have more details on sio sue? yesterday we had a huge gain in the copper market. it's giving some of that back today. look at palladium, though, up 1% on the trading session, $8.40 marginal decline in the gold mark, down about nine cents on the session. to the bond market now, out in chicago, rick santelli is tracking the action in bonds and in currencies for us. hi, ricky. >> hi, sue. hold on, i have to get my heart rate back down. principal reduction, mr. watt, yeah, that's what we need, 5 1/2 years after the crisis. whoa. back to the market.
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if you look at intraday, 5, 10 or 30, all three maturities are down five basis points. parallel shift on the yield curve. why? weak data. so any of you viewers and investors out there that want to know what's moving the market. today is a case in point you get to see why the treasury complex may have yields lower than many thought at the end of 2013. if you look at a year-to-date chart, clearly we're knocking at the dar, bund yields, that keeps staircasing lower with no end in sight hovering around 140. two charts reveal a couple things. first of all, and now it's at 136.90, down on the year, that is definitely a helper for the dollar index. tyler, it's all yours. >> rick, thank you very much. 19 billion, a billion for instagram. are those valuations justified or could a bubble be brewing?
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plus -- >> i'm jane wells in ft. worth, texas at lockheed martin's f-35 production headquarters. what will the defense industry look like in 25 years? that thing will be middle-aged. what kind of skills will pilots need? will we even need pilots? we'll talk about that later.
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a. well come back. o'hare and midway have ground stops at both airports. no flights coming in, no flights going out. the reason why? at about 11:30, an hour ago, personnel from the faa were evacuated from the trey con office in elgin because of smoke in the building. they have transferred that staff over to another office in aurora, a suburb of chicago, but at this point there's no indication when that ground stop will be lifted. again, no flights right now coming in or going out of either ohay or midway airport here in chicago. tyler, sue, back to you. >> that is mess you will air
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traffic all over the country. whirlpool has been a roller coaster of a week one day after rising nearly 3%, this is on the news from right now whirlpool down about 2.5%. sue? >> thanks, sheila. dominic is here at post 9, you've been working the floor. >> it's been amazing. the traders saying there's no definitive shift toward the market. one buyer saying the path of least resistance seems to be the up side. but there's a couple spots that are interests. it's interesting. the russell 2000, very much in the red, if you will, but also the mid cap stocks as well. you have the harvs-ish, and then the mid caps, if you look at some of the individual names, the ones weighing things down,
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take a look at what's happening with some of the big names. aol down about 3%, also underarmour and panera bread. on the russell 2000 side, some really compelling stories hooks el elizabeth arden, but then on a -- open table their ceo telling cnbc they don't fear the competition for reservations from yelp, so in big names are weighing things down. >> and elizabeth arden looking at strategic alternatives. they've had some tough sledding. tom, thank you very much. >> ty, up to you. the defense industry has changed a heck of a lot. what would it look like over the next 25 years? we're joined with jane wells in florida, unmanned vehicle systems international show. that, jane, is a mouthful. >> reporter: it is.
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they're military types, not english majors. in 25 year, ty, ruling them all will be the f-35, a trillion dollar program, probably, because the greatest threat isn't the chinese or the russians, it's the budget. it's the jet that can do it all. so stealthy and powerful, no current opponent stands a chance. the first f-35 won't be combat ready until next year at the earliest. by 2039, it will be the backbone of u.s. air defenses, assuming it delivers as promised. it better. it's costing taxpayers about a billion a month. >> it is a flying computer. >> former f-18 pilot steve obrian helps oversee production at the mile-long assembly line in ft. worth. >> in 25 years, this airport will be all over the world. >> matt runbarringer is tested
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the completed aircraft. >> in my f-16 i had a radar, other sensors that i had to in my own mind put together to have a tactical picture. this jet infusion puts all that stuff on my displays for me. >> helmets are custom fit to do each pilot. information from exterior camera is is transmitted on the adviser, but as our airports change, so must or pilots. >> stick and rudder skills that used to be so important, we minimized u. because we made the airport easy to fly. >> tomorrow's pilots need to be good at processing reams of incoming information. >> we can teach anybody to fly the airport. think about the spectrum that might open us for us. >> 35 years ago, air supremacy meant surviving a dogfight. 25 years from now, it means winning before the enemy even knows you're near. >> i would say it's probably less romantic, but i never met a fighter pilots who wanted a fair
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fight. >> now the f-35 is still working through software problems, but the pentagon believes in it and it is installing an operating system that it believes will be easily upgradeable. next hour on "street signs", the man with the checkbook talks about what he seeds about our biggest vulnerability -- space. a team of reporters is rolling out a slew of stories what the defense industry about look like. stay with us, why don't you? let's talk more, with peter articlement, peter, did you hear anything in jane's report that leaped out at you, other than the obvious capabilities of this masterful aircraft? >> yeah, good afternoon, tie le, yeah, the flying computer comment really holds true here. i think, you know, there's million lines of code when you're talking about the f-35.
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that's just exponential of what we've ever seen before. that really does stand out. >> jane referenced, and i want to bring you in for a question after this one, if you don't mind. jane referenced the possibility this plane may just be so capable, so expensive that it doesn't get built or not built in the numbers or scale that are currently anticipated because of costs. how big of a worry is that for you and for lockheed? >> yeah, it is a worry. i mean, it represents 20% of lockheed 'current revenue base right now. it will 'low lockheed to decouple from the overall defense budget over time, but the history is really not on their side. we were originally supposed to buy 120 b-2s, we bought 20. we originally were supposed to buy 760 f-2s, we bought 180. right now the u.s. wants to buy 2400 f-35s. if they can't control the costs,
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that numb her will come down and become expensive for the eight-partner nations that are involved. >> reporter: yeah, the pentagon really continues to work with lockheed to bring it down, but he's absolutely right. they do need the international sales to make it happen. what i find so interesting is the fact we'll need different types of people to fly this in the future. one -- in the entire defense industry is finding new workers and new gen race of workers that are top-notch tech workers. they have to be u.s. citizens, have to pass a security check and have to be willing to work on programs that potential kill other human beings. that can be a challenge. >> let's take those things, because it's a fascinating conversation. in the piece, jane, the gentleman said, what if anybody can fly this plane? and you just said it may need a different kind of pilot. you know, what are we talking about here, peter? >> reporter: we're talking about
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someone who can really process information and be a about tact cities. i'm sorry, go ahead, peter. >> i think what you saw is most of surveillance in afghanistan, for example, was done by uavs that were piloted -- thousands of miles away at a different -- at a secure location. so there's no question that the u.s. is already building out that capability, but they're going to have to continue to ramp that up, because you're seeing that merge where a lot of unmanned aerial vehicles are taking over. >> if this project, this plane isen, at least in part on international sales, peter or jane, how willing are we going to be to sell this truly advanced technology really to anybody? peter? >> reporter: right, this is a big issue. the pentagon has told me it truly believes in the allies we're selling it to, but that's an issue. you have to make sure these people will be your friends for the long term. >> well, all these systems were designed so that they were
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exportable in terms of these partner nations, unlike the f-22, where that was never designed to ever be sold internationally, so they couldn't, you know export that particular plane, but the f-35 was designed this way from the ground up. so the eight nations that are involved are really certainly will be able to support it. >> it's a tough question. obviously in an unstable world, stable countries that are friendly countries can turn unstable and unfriendly very quickly. folks, thanks very much. jane, great to be with you. sue, down to you. >> let's look at the s&p. it briefly turned negative a few moments ago. it's back up a little bit. we're going to keep a close eye on that after it hit 1900. when we come back, sky-high valuations, is there a tech bubble brewing in silicon valley? josh lipton is in san francisco with some of the top venture capitalists and innovators. hi, josh.
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>> hey, sue. yeah, dc firms from an degreesen horowitz, they are all here, venture-scape in san francisco, panels, discussions, but the big question before the house, is there a tech bubble? silicon valley? we'll have that story for you when "power lunch" returns. (mother vo) when i was pregnant
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take it on the way you always have. live healthy and take one a day women's 50+. a complete multivitamin with 7 antioxidants to support cell health. age? who cares. the stock is off about 25%,
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from the high that it hit at the end of february, and does include today's gain of about 2.5%. >> thank you, sheila. the tech sector surging over 20% over one year, and that has some people wondering if there's a bit of a bubble brewing. cnbc's josh lipton joins you from san francisco. over to you, josh. >> reporter: well, sue, certainly big name vcs are gathered today. one question before the house is, is there a tech bubble in san francisco? it's easy to understand why investors would have that question. you've seen valuations of these start-ups just shoot higher, air b & b and drought box, spacex, but the vcs i'm talking to here today, they don't see a bubble. they do, though, say certain
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pockets of sill chron valley are looking overpriced. scott degreesen says his form is paying close attention to the enterprise space or the start-ups that sell technology to other companies. >> it's an area where we're watching where some of the excitement is starting to percolate into earlier status, so that's an area we're trying to pay a lot of attention to. >> i also caught up with menlo ventures, and his point was if you're talking about a bubble you're probably not into one. if you're talking about -- listen, some of these high-flying startups certainly have a lot to prove to demonstrate they do deserve these valuations. >> from the outside, you look at an drop box at a $10 billion market cap, and you say there's a lot of room and value they need to built in from a financial metrics standpoint. >> now, bubble or no bubble, vcs
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are finding plenty of opportunity. they invested $10 billion in q1. the highest quarterly total in about 13 years. sue, back to you. coming up it's the countdown, but the super-rich edition. zuckerberg in a billionaire real estate battle, the world's most expensive watch and why tonight is one of the most important nights for the art market. "power lunch" is back in two. mine was earned in korea in 1953. afghanistan, in 2009. orbiting the moon in 1971. [ male announcer ] once it's earned, usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protection. and because usaa's commitment to serve current
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rob frank is here. first topic mark zuckerberg, being sued by a developer. he's got a house, parcels around it? >> basically he spent $43 million to buy four parcels around the house to give himself a buffer, privacy, but the guy one of the lots from is now saying in that contract, zuckerberg was supposed to introduce him to other rich guys and give him business. >> nights trash cans, here. >> no. >> this sounds a little like a shakedown, but again, you know, it just shows how privacy is so important.
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>> he could control what went on there. >> one went for $14 million, valued at less than half of that. there's a big zuckerberg primeius. >> know who the buyer is. it sold by christie's yesterday, basquely because of the gorgeous enamel design. they thought it would go for about half that amount. >> is that nemo? >> that's a whale and a boat and, again, that is all enamel inlay. you know, the watch market has done well. watches, even though he don't talk about it a lot, have better performing collectible market than art or wine. >> from when does that watch day? >> 19497.
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remember in the fall that francis bacon sold, but this one is also a trtriptic. and also we're going to see some warhols, and my favorite. a toy train will sell for 25 to 35 million. it has bourbon inside. so if you don't like the train, you could at least drink it. >> never can have too much bourbon or bacon. everybody will be watching to see how that auction goes and whether or not the art market is topping out. a big night for philanthropy. it was the annual robin hood gala in new york city, the top bankers and hedge fund bankers as they raised $60 million to
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help fight poverty. "power lunch" was, as usual, in attendance. look who we ran into, among other people. bill ackman, with a front-row seat. laurence fink who asked repeatedly if we liked his cool, colorful spotted tie, and yes, larry, we do. and appaloosa management's david temperaturer who earned a eye-pope 3.5 billion last year. robin hood investor peter chironen and his family were also in attendance. so a big night when wall street gives back. let's so what's on "street signs." >> sue, housing affordable around the nation is an interesting topic. we're going to bring you the cold, hard facts. not one, but two mystery charts for you today, and as you're preparing to take out a mortgage, what if your lender gave you a basic financial literacy test first? maybe not such a crazy idea. wee debate that, and all those things at the top of the hour.
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we'll be right back right after this. we're moving our company to new york state. the numbers are impressive. over 400,000 new private sector jobs... making new york state number two in the nation in new private sector job creation... with 10 regional development strategies to fit your business needs. and now it's even better because they've introduced startup new york... with the state creating dozens of tax-free zones where businesses pay no taxes for ten years. become the next business to discover the new new york. [ male announcer ] see if your business qualifies. with all the opinions about stocks out there, how do you know which ones to follow? the equity summary score consolidates the ratings of up to 10 independent research providers into a single score that's weighted based on how accurate they've been in the past.
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take it on the way you always have. live healthy and take one a day women's 50+. a complete multivitamin with 7 antioxidants to support cell health. age? who cares. allergan currently higher about a percent. bill ackman went directly to the shareholders about his $47
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billion takeover bit with vailian. now allergan is responding in part -- this is obviously a self-serving exercise. so tyler, that battle is heating up. that will do it for this edition of "power lunch." "street signs" begins right now. see you tomorrow. is housing really all that affordable? we hear it all the time these days. we're going to take a real dive into real estate, ahead. plus why taxes tell the tale of where everybody seems to be movable, an interesting debate whether you should be required to take a simple test before being given a loan, while i got a little testy on politics this morning. okay, mandy, it was a rant. >> i can't wait to see it all over again. can you smell the complacency in the ai


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