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tv   Power Lunch  CNBC  December 14, 2017 1:00pm-3:00pm EST

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people milling back into that room meaning that security threat is over we don't know but i doubt they'd let people back in if it wasn't. that would be good news. either way, more on that story as well. both stocks higher guys, thank you for making these. that does it for "halftime report" on this thursday "power lunch" begins right now. >> see you in a few minutes, brian. i'm michelle caruso-cabrera. what's on the menu -- mickey la caught a fox disney buys 21st century's assets for more than $50 billion. what's it mean for disney and the battle over content and distribution will the deal get past regulators we're all over this game changer. house and senate republicans agreeing on a tax bill but we don't know what's in it. what's staying what's being dumped overboard? we'll speak to a member of the committee hammering out the bill. and even before the bill is unveiled, a massive buy back binge. could be just the start. stocks on the sectors to put on
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your watch list. "power lunch" starts right now. ♪ let it go, let it go i am one with the wind and sky ♪ all right. welcome to "power lunch," everybody pap bit of a disney phied power lunch if i do say so i'm tyler mathisen stocks struggling for gains. the dow hit an interday record high, if it stays positive, ever so slightly negative now, dow up a sixth straight day i know you want to know about bitcoin. you want to know how it's trading. right? it is up on the bit stamp exchange, that could change, of course, before i finish speaking or we hit our first commercial break. twitter on a tear, stock soaring to a one-year high promise me, you'll see it in a second in respect it is. there's twitter going up up 93 or about 4.5%. no major reason. just twittering. it's twittering. retail also rallying best buy, new all-time highs
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there. michael kors highest record in two years and lululemon, one-year high. nike, tiffany also at new highs. >> begin the hour, tyler, with a huge deal of the day, probably the year disney pay be $52 billion for a large part of 21st century fox, d disney gets a bigger share of hulu and fox international and also sky here's what disney is not buying disney does not get the fox network, fox sports or fox news channel. first to report this deal could happen more than a month ago, joining us with more details. >> thanks, michelle. yeah, back i think november 6th when first reported on the talks between disney and fox and a lot of people said what? is that possible could rupert murdoch really be thinking about taking apart the empire he spent years building we've reported on it saying, yes. gone from possible it likely to
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today, it happened as you said, of course, it's $52.4 billion in disney stock. fixed ratio of disney shares, adding up to a bit more. closer to $55 billion overall when you adjust for considerations and the like that will come along, along with $14 billion in assumed net debt. so it makes today very large deal pointedous assets, international assets, star and india, for example, important what are they paying about 12 times the ebitda from the company, but say, well, when you throw in the $2 billion in cost synergies we see, remember, putting studios together saves them money takes the multiple down to a much nor acceptable 8.3 times estimated ebitda we got here, the fascinating part of it i reported earlier, iger, bob iger, runs disney and rupert murdoch met periodically over
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time including a meeting late this summer. learning more about rupert murdoch's thinking i can tell you he had already been sort of thinking through the idea of his company into the future. what it would be the challenges it faces into the future from the netflix and amazons, googling and facebooks of the world, whether he had enough capital to compete and what seemed to be diminishing chances to get the deal to get 60% of sky they already own. taking into account rationally is it possible i could end up looking like some of the other hobbled media companies? not to mention names, you kind of know where i'm going. iger picked up on that and said, i might be able to get something done with him here keep the conversation going. revisited it started really negotiating late october into november when we reported on the talks and here we are today. i did ask mr. iger earlier, if you really thought back then in august when they sort of first
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at least discussed or murdoch discussed his concerns, whether it would ever lead to today's deal >> i thought it was a long shot, but the more i thought about it and the more rupert thought about it, the more we talked about it, the more it made sense and when we were able to agree to the terms, somewhat complicated in nature, but still i think propelling, we got it done so i'm certainly excited to be here today i think if you asked me in august whether i would get to this point i'm not sure i would have bet that i would have, but certainly glad we have reached this agreement, and really looking forward to the future. >> and so many different things to discuss in terms of disney's future near-term, it's about getting it through the regulators many of the experts we've spoken to believe it will be able to pass that examination. it does include a $2.5 billion breakup fee if in fact disney is unable to get the regulators to agree to the deal and one area there is concern, seems to be in
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the area of the regional sports networks i reported on comcast having interests in these assets bidding aggressively, even at a higher price perhaps but had trouble on the regional sports networks six it couldn't consider buying because of antitrust is it a concern for disney i asked mr. iger. >> on the sports side, i think you have to look at the regional sports networks as a complement to espn not an overlap in the sense like a television network has tv affiliates, a network is national and affiliates are local. same is the case here. espn has essentially a national program footprint and the others are local in nature and able to complement one another a shares of products so we can infuse espn national with more local content and infuse the local regional sports networks with more national content and the result will be both will be better for the consumer than it is today >> ah, you heard it there. better for the consumer is the key they emphasize
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the question, will they be so dominant in sports perhaps it will be non-competitive? something antitrust regulates need to take on. other parts to get to, leave it there for now. back to you. >> david, thank you. here to dig deeper into what it means more media and entertainment industry is hollywood rotter editor at large kim masters. does amazing work out there, and needham senior analyst laura martin welcome. kim, begin with you. go to 60,000 feet and look at the disney that bob iger has brought. he has changed this company, maybe not the capstone of it, certainly a big piece of the new disney >> definitely a lot to digest. he has built disney with acquisitions obviously pixar, then marvel, then lucas film this is gigantic, and it is just terrifying hollywood, because as it is, disney already has such dominant market share, especially in movies
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they release fewer movies than other studios and still dominate in market share. that might be an antitrust consideration combined with fox they'd have something like 40% of market share and we see other studios, paramount especially and sony pictures fighting a tough battle now to stay in the game, and disney has just won the movies and now only more. >> so laura, as kim points out, they are a king of content disney even more so now is there, in your view, an antitrust concern here or not >> i would say, no, because i think what the regulators are missing is that media is not, no longer competing with old media. it's competing with amazon, apple, facebook, netflix each of whom will spend between $2 billion and $7 billion on content. those juggernauts are completely unregulated, pay virtually no u.s. tax so to block the ability of disney or time warner to compete against those juggernauts is sill for the u.s. government to
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do. >> on this note, just now joe flint of the "wall street journal" tweeting the writers guild of america announced they oppose the disney/fox deal saying the anticipate trust concerns raised by this deal are obvious and significant and they're going to work strongly to oppose this merger and work to ensure our nation's antitrust laws are enforced. how much sway do you think, kim, they'll actually have? >> not much sway >> kim >> yes >> are you not hearing me? >> i am, yes. >> kim, go ahead. >> i don't think they'll have much sway. i think first of all rupert murdoch has been courting the trump administration assiduously with fox news i can't imagine the trump administration allow as block forgetting policy matters. there is, again, this just signals a shift as laura said. we're not talking about warner brothers and, you know, sony so much anymore we're talking about apple and google and what this deal is being called, you know is a netflix killer bob iger is pulling back content
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from netflix he's bulking up his own content and netflix is going to be facing a formidable contender with disney having at least three, four i don't know how many streaming services. >> laura, so for a long time the narrative on disney stock was, espn is declining, and what on earth are they going to do about it should you invest in that stock as we watch all of this core cutting has, iger permanently changed the narrative, this is what we're going to do about it and how we'll succeed. >> yep in this deal he's gotten himself out of a strategic box it needs to be said, rupert murdoch started with one newspaper and created a $100 billion asset over his lifetime just handed $66 billion of what he worked for, took it away from his two kids and handed it to bob iger. >> why did he do that, do you think? >> two reasons margins of the wall disney company every seg mcht runs
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higher than fox. iger's team are better managers than rupert murdoch's kids and rupert told you on the call you need a scale solution. disney is his scale solution and kept a super fan niche business in fox news and the sports business. >> who's next? hanging out there, cbs cbs stock down 8% this year. $23 billion market cap, almost quaint at this time. do you think somebody comes for cbs, or cbs makes a bid to get bigger itself by being the buyer? >> i do. i think cbs ends up buying viacom should, have happened two years ago. so i think those two go back together and that would be smart, because then you'd have a, sort of an anchor time-out with the bros caster coupled with all the very robust cable networks and vie kops. >> kiviacoms. >> kim, part of this is that mr. iger is going to extend his term
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at disney. do you see a time when james murdoch succeeds him i mean, mr. murdoch has -- the son, has really worked in the family business all of his life. is he in line to succeed iger, number one number two what do you make of this deal which is seemingly -- and disney's strategy onstreaming which is a lot of this, on the very day that net knew trait rule kn neutrality laws are to be thrown out the window >> that murdoch has any role at disney, iger was vague tab as i understand 23 century fox, peter rice the top man who's not a murdoch at the company he's british by birth. so that might make an odd successor to iger in terms of disney being such an american company but he's been carefully groomed over the years in film and television and presents very, very well.
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so i thought about him years ago already as a potential disney successor and that does seem to be a potential answer if iger ever leaves. and you know, as far as the rest of it goes, we are seeing a transformation the studios -- a lot of fear and anxiety any hollywood today. they have been very, very scared about this moment. they felt it coming. very shocked right now, because this is the moment of transformation. >> we are going to speak about that moment of transformation right now. kim and laura, thanks very much. transport ourselves down for breaking news on that decision on net neutrality with julia bo boorstin. >> as expected, the net neutrality vote through, overturned, a proposal to overturn the obama net neutrality rule ace proved by a vote of 3-2. there were two fcc commissioners dissenting and pie made the final comments in the, in the meeting just now. he talked about restoring what
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he called a light touch framework moving from title 2, internet utility back to title 1 saying it's the legal framework that governs the internet from clinton to 2015 saying it would not destroy the internet or end internet as we know it quite a bit of dissent and concern about this we heard some commissioners before, namely commissioner pipeearn saying optimistic it will be overturned by congress or vacated by court. interesting to see what happens here momentous day for internet companies and those that stream individual yore on the internet in this vote 3-2 to rule back the net neutrality rules but the battle isn't not over certainly. >> went straight down party lines? traditionally that's what happens? power gets majority on the board and two minority dissenters? >> yes this was very much expected. the vote today went down exactly as we anticipated with the
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exception of that weird moment where the room was vacated for a security concern, but it is worth noting though the vote went down on party lines, this has become a non-partisan issue and there are a number of states attorney generals as well as democrats and republicans in congress who raise d concerns about this and asked the vote be delayed. one reason, concern that some of the comments that were filed by the public were fake and they were done by box or art firnl ar -- artificially and concerns the vote should be delayed because of that. this is not technically just a partisan issue based on the way congress is tackling it. >> thank you, julia. disney, boeing, home depot all buying back massive amounts of their own stock lately. will buybacks round two continue to fuel the rally? plus it is down to the wire in d.c the final tax bill negotiations taking place right now up next --
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we'll outline what will kelily make the final cut and what is likely to get cut. ♪ ♪i'm living that yacht life, life, life top speed fifty knots life on the caribbean seas it's a champagne and models potpourri on my yacht made of cuban mahogany, gany, gany, gany♪ ♪watch this don't get mad (bell mnemonic) get e*trade and get invested
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republicans trying to get tax reform with a finish line as soon as possible what is likely in and out in a moment back to now d.c. and what is the latest on the report that paul ryan may be stepping down next year >> the house speaker put out a statement denying the report
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that came out of politico he would step down after the elections. his office called a pure speculation. he was asked about it during his daily press conference he said no, no, i'm not. everyone sort of laughed one of the reasons is because paul ryan has been one of the figureheads of republicans' effort to get a tax bill passed through the house and then passed through the senate and to the president's desk two sources confirmed to me that there are new rates for repatriated assets in the final version of that tax bill they are 8% for a liquid assets. 15% for cash a little higher than what both the house and the senate had previously proposed. also in the net final of the bill, the individual alternative minimum tax kept in the final bill, but the exemption for that would be increased to $500,000 for individuals and $1 million for couples.
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now, this bill has not been polling well amongst the american people, but today paul ryan dismissed those concerns and said he does believe economic growth will occur >> i'm convinced this is going to help repatriate capital, convinced it will launch more investment in businesses and in workers. i'm convinced this is going to give bigger paychecks, a simpler system >> republicans are planning to sign the final version of the bill tomorrow morning. that is the last step they need to take before sending this over to the floor for a vote. back to you. >> thank you very much, elan xwlash. what is that final bill going to look like joining us, from arizona, a member of the tax committee. good to have you. >> thank you very much. >> the committee, both sides getting together, senate and house trying to bring together a bill everybody can agree on. can you help us run through some of the things that may be in or
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out at this point? go ahead. >> well, here's the disadvantage,able not only a disadvantage but procedurally this process both in the house and senate has been very rapid, very secretive minimal if none, public input, public hearings, just individual markups in both bodies to move the pieces of legislation. the differences that were supposed to be reconciled, compromised or changed during the kurchs unfortunately the majority of the conference we all attended yesterday was that wasn't going to occur we were permitted three minute comments on what was there asked questions of the expert that came in from the joint tax commission and that was it there there was no ability to make motions to change, to strike, to amend, and so -- and the irony of this whole thing was that there have already been among house leadership, republican, and republican
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senate leadership an agreement on what that reconciled bill would look like and we didn't have it in front of us. >> i'm hearing you felt superfluous and cut out of the deal in that situation >> absolutely. this has been a rapid path, they need to get it signed, and the ability to debate, disclose what is now in the new agreement, we've heard from yourselves and other media outlets what some of the content is. >> do you know what's in this near to final draft? >> not with specificity and neither does our leadership that was part of the conference committee representing the democratic party both in the senate and house. >> can i ask you, sir, do you think -- one of the big impulses for this bim is to give u.s. corporations more competitive footing in the international tax world. do you believe that our u.s. corporations need a lower corporate tax rate
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are you supportive of that part of the bill? >> no. not at all i don't believe that has been an impediment to u.s. corporations. they continue to do business they continue to do business in other kubts acountries and pote pay a higher rate and that has not been an impediment to any growth or investment, and to lay that out and promise a 3% to 4% growth rate every year is betting on an unknown, and based on past practice and current practice, that is going to be a very, very difficult if not impossible promise to keep in terms of this budget fch th if that 4% doesn't occur, in terms of the deficit created and the $1.4 trillion over ten years for the tax cut itself, $1.4 trillion deficit, then we'll going to have the self-fulfilly promisy from the leadership saying we must cut more. cut entitlements, do this, do
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that, to deal with the deficit. >> go ahead, brian. >> i want to switch gears. net neutrality struck down outspoken critics saying it's going to rise internet pricing for everybody. what do you think will happen with the intersglet that just happened moments ago >> i think the two remedies left is for congress and the house of representatives to take -- immediate action and legislation put together soon to reverse the decision of the commission and, of course, the litigation that will follow in terms of jew dish relief we can't let this happen the more you pay, the better access, more content you have. i think it goes against not only the net n-o net neutrality, peo
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tooblt have opinion it will limit, to release information and to be able to uses that as a tool economically as well. >> that would be extraordinary there seem to be no shortage of opinions from so many people congressman, so good to have you. thank you for joining us today xwlashgs do hedge funds titans make of the tax plan weighing in on the closing bell at 3:00 p.m. eastern time. first, a government crackdown, not a government spending program the latest out saudi arabia and the amazon effect. what has the company's purchase of whole foods meant for the companies that sell their products trehe we'll be right back. [vo] when it comes to investing,
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as part of the deal to buy fox assets disney announcing a huge stock buyback $20 billion over the next few years and not the only company buying on its stock. more on the biback binge. >> tyler, we've heard the big ones you mentioned disney, boeing, a massive one over the last week and home deep pope list goes on and on a lot of companies buying their own stock back and over at dow jones compiling a running tail ally and lookingt q3 129.2 billion dollars worth of s&p 500 company stock was bought back just in that quarter. that's 7.5% higher than the previous quarter and a full 15% better than it was at that same
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time last year companies increasingly spending on their own stock look at some of the big sectors in that particularq 3 q3 and retail consume discretionary, $24 billion,s 25ds billion biback. year to date, the big numbers when you might expect. $383 billion spent year-to-date buying an own shares in s&p. biggest cull pepert and dominating the stock see if that continues in 2018 given what we nigmight see withx reform. >> dom chu, definitely, as always. and posting double digit
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gain our next guest says fear is another missed year and shake off your worries and embrace stocks give in and give out here now with his 2018 playbook, rich bernstein, richard bernstein adviser, cnbc contributor. i guess, richard, the hard part is convincing people to remain bullish. we've had a hell of a run since 2009 i think what do they say pigs get fed hogs get slaughtered is the hardest thing convincing bears to become bearish or the bulls to remain bullish? >> brian, a great question you have to remember, most people really are bearish, in fact, even today the boston consulting group released their annual investors survey and it showed that investors were the most bearish since 2009. i think there's a lot of people saying that everybody is bullish simply because the stock market has gone up and everybody is bullish because they think
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valuations are too high. the reality, everybody thinks that and is scared of the equity market they think 2008 is about to replay anytime and we have to protect against that that's not the way to make money. >> what is the way to make money in 2018? we like making money. >> i think -- of course, everybody does i think the way to do it, follow fundamentals look, earnings around the world are still accelerating is that going to continue through all of next year i don't really know, but right now that's the case. it's really hard to get a bear market when earnings are accelerating we know there's a ton and a half of liquidity throughout. look at bitcoin. we know liquidity is out there hard to get a bear market when you have a lot of liquidity. a lot of ammo for people to buy on the dip hard to get a bear market when that happens i pointed out, sentiment is on our side. >> what can change is, right, is an economy that gets a little too hot, a labor market that gets a little too tight, and a fed that gets a little too
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aggressive in raising interest rates. do you worry about that? maybe not so much for 2018, but as the turn is made into 2019 and beyond >> of course we have a reasonably healthy economy and now get a tax package on top of that the tax package isn't meant to slow anything done it's meant to speed it up. tyler, the risk is you do get an overheating economy going through 2018 to 2019 that's normally calmed the late cycle environment. late cycle environments are characterized by more inflation than people think. a fed that plays catch-up and krench eventually, key word, eventually, inverts the yield curve. you still have three to five months, at the curve flatten expect returning to go down. not the way it works. >> tax reform won't hurt corporate profits? >> i think tax cuts for corporations unmitigated bullish
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point. you know, corporate tax cuts are plent to benefit the owners of capital. who are the owners of capital? shareholders so i don't see how it could be bearish for the stock market that we're getting a corporate tax cut. >> i can't wait to see all the ceoess taking credit for all the rising profits next year. >> of course they will. >> and paid more for it. >> of course. >> they deserve it, tyler. >> yes, yes. >> right not at my firm, though right? >> you should gish rich a raise. richard bernstein should -- the guy that runs richard bernstein advisers deserves a raise. >> she good. >> earned enperson ee eed every >> stay bullish in 2018. see you soon. saudi arabia making another bold move. details, next.
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said he could work with president trump. >> if the president has things on this agenda i think are good for the people of alabama i'm grog to work with him. we have a great defense industry in alabama i'd like to see the federal dollars coming in to the state i could work with him on those issues >> greek workers walked off the job in a nationwide strike to protest government posterity measures fer rishgs tra ferries, trains, and marched to parliament where lawmakers are kbee debating the 2018 pcht. a cow escaped from a nativity scene found its way on to interstate 95 in philadelphia this morning the bovine named stormie left the scene at old first reformed united church of christ. no word why. maybe -- yeah, yeah. i know the story the police boxed in the cow and returned it to the church. there are so many ways i could take this story, guys. i mean, like -- where were the
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shepherdses? aren't they supposed to watch the animals? not just the sheep all the livestock. >> many ways to take the story professional credit, you did not mi milk that in anyway. >> and why have that giant bull in your nativity scene get a nice little heifer. >> that's like an angry bull. >> mostly looked rather -- >> delicious. >> ladies and gentlemen, it's time to moo-ve on. >> utterly awful. the markets, dow managing to hit an all-time high in early straighting but well often the highs today. dow is negative. thinking, what earlier we were up some of your big movers this hour, netflix among the top s&p performers shrugging off today's disney/fox deal. and mattel jumped 7% opened rough this year down 40 percent. and look who rolls on.
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row que roku 30% and 40% this month. >> i'm surprised you didn't have a beef with that story. >> oh. and saudi arabia announced a $19 billion stimulus package for growth in the economy and offset austerity. and provide export financing, reduce customs fees. this comes as the kingdom is trying to-change its economy to one less reliant on oil. program consulted ed the iman mb would be behind the crackdown that led to dozens of princes jailed for corruption. a lot of work to do in that economy. see if they can manage it. >> it is a big change for them huge. >> massive, massive. >> societal, economic --
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everything >> so many vested interests who live on the old ways how do you get to the new ways >> yeah. and go to those nations, you and i both traveled there in the region fairly extensively. the working class is very small. >> right they import. >> if you go do dubai, the natives, people born in the uae, in that reason, most of them they don't work. >> right. >> they import labor from bangladesh, from pakistan, from other places the social dynamic there under the fabric seems risky in some ways. >> what's happening in saudi arabia seems risky very risky to me because those -- >> he's made a lot of enemies in a hurry, and -- well -- >> he may be "the"story of 2018. >> could well be. to the bond market we go, and rick santelli, tracking the action at the cme. hi, rick >> hi, tyler had so many central banks
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meetings, as the dust settles, look at two-day charted 10s. one base point higher and bun basis point lower, 30s, yields higher, flattening you need to notice after the fed meeting the dynamic of the day on the left side was a big drop at 8:30 eastern after cpi. could never manage to get above that still haven't. that's significant look at year-to-date, 30s. toying with this 272 area significant. you see on the charts. long end losing it, getting a bid losing yield and after the bank of england and the european central banks, currency markets giving clues one week of the euro, you see it's virtually unchanged up a smidge on the week. i think that's significant especially when you consider some of the activity like what's going on in german stock market. seems political and currency is waiting to see how things pan out in 2018. mario draghi may buy less but still more than issuance
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finally today, etf for high yield. looks like it's losing its bid even though the spread is based on barclays is doing okay. usually seeing rallies in the treasury complex you see it firm up somebody to pay attention to as it goes into year-end, maybe back to you. >> got it. and purchasing whole foods atnducmor the food suppliers th a mh re we'll be right back.
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morgan stanley ♪ let out your inner child at the lexus december to remember sales event. lease the 2018 es 350 for $319 a month for 36 months. experience amazing at your lexus dealer. talking amazon effect, tends to imply negative. amazon's impact on the grocery business on media. some companies benefit from amazon's growth. celestial benefited from whole foods. stock up 12% over the past
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month. joining us now is celestial founder. mr. simon, thank for joining us. >> thank you for having me. >> down at the summit. a big gathering for you guys i want to talk about amazon in a second first i don't mean to be a downer, but the nielsen numbers came out in terms of sales, and you've got 12 straight months of declines for hane products what's going on? when will it turn around >> first of all, you're down a downer, michelle nielsen numbers. interesting, you talk about amazon and whole foods and sprouts or costco. amazon numbers -- nielsen numbers do not include all of those retailers i just mentioned. we're seeing a lot of shifting going on and some of our fastest growth today is coming from ecommerce. so exactly what you're saying is consumers are buying more and more products online, and walking away from the brick and mortar
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that's where our biggest growth is. >> total sales are up? >> all sales up, overall sales up u.s. sales up in the last quarter. and there's more and more consumption moving over to non-measured channels. >> what about the amazon acquisition of whole foods what impact are you seeing immediate thing we saw, they cut prices dramatically. >> i think, as i said -- listen, our business with whole foods is up single digits over the last couple years we saw declines within whole foods there's been a lot of centralized purchasing there's a lot of category management going on. amazon is bringing in a lot of content, a lot of good information coming out about the consumer we just had one of our best thanksgivings ever with both amazon and whole foods in regards to turkeys, and, you know, both amazon and whole foods and amazon was up double digit and whole foods was up
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single digits in regards to the consumption of turkey. what the consumer bought, michelle, organic, fresh turkey. moving over from a frozen turkey or from a non-antibiotic-free turkey we saw tremendous growth in amazon and whole foods. >> engaged capital 9.9% stake in your company in june a lot of analysts expect what that means eventually you'll sell off part of the company or the whole company. comments on that what's the future of hain? >> we have the brands and products that consumers want today. health and wellness is where it's at. one of the big things is what's happened to a lot of these big consumer package goods foods companies today, they haven't innovated and millennials are not buying the brands that their
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mom and dad ate. whether iternst bet baby food versus gerber and marinated nut butters versus the butter absolutely we have the brands. organic, 99% gmo-free. that's where consumers and especially millennials are moving today. >> how about the cut in corporate taxes everyone expects? what will that do with your business and what will you do with the extra money >> limp,sten, the extra money is important to us. we came out and said we'd invest into consumer advertising and building awareness that's going to be great for hain, a couple things. we'll continue to invest in building brand awareness with the consumer and taking those dollars and invest it in brand consumer will ultimately drive growth of our products. >> one of the criticisms is that
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from members of the democratic party is that this isn't going to lead to more hiring or higher wages. you mentioned spending on advertising. hire more? employ more people >> listen, hey, growth is the key. when you're green you're growing, ripe you rot. the faster we grow is the more -- employees we're going to need we have over 39 factories around the world. spent over $70 million in cap x last year. we will continue to invest in our plants let me tell you this here. you can have the greatest brands in the world, but you got to have great people behind you and we'll continue to invest in people as a company today we're hiring still without any tax reform. >> all right mr. simon, thank so much irwin simon. ceo hain slet trcelestial. and shares of pharmaceutical
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stocks up, more job losses i hate these stories. >> 14,000 people more than a quarter of teva's workforce announced today will be cut as part of a restructuring. the company aiming to save $3 billion as part of these changes by 2019. this comes in the mid of really tough year for teva. the company has been dealing with pressure on the generic drug business as prices of the generic drugs in the u.s. have been going down. teva has $30 billion plus to contend with n the new ceo just took the job and making new changes why you are seeing teva's stocks reacting positively. a lot of analysts are saying this is not enough and they are dealing with a lot of problems here it may not be enough to fix what's going on.
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>> thank you very much our retailers are moving big dominic chu is tracking them at this hour. >> shares of tiffany's are among the best they are held along out of city group. the stock is a buy the price target is up to $115 and it was $92 they cited them on many things also, increasing at tiffany could be a possible accusation target either in part or as a whole. shares are up 20% verses the s&p 500 at 19. >> it is "street talk time." >> speaking of disney and fox, can the deal this big get pass government regulators who have been more aggressively and cracking down major mergers, we'll find out and a lot to talk
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time for "street talk. our daily dive of the call of
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the day. >> oh, okay, first up we have a call on a media stock that's not fox or business. cbs is an over weight saying it is a high ground in media. and, potential as an acquisition target, something that we talked about earlier should help the stock going back to previous highs. price starting is 70 bucks and that would be 20% upside from the current price. >> our guest says that they could go after viacom. your second stock, jp morgan downgrading valeant. the shares nearly doubled after the third quarter comes out. valeant's leverage remains high and it is suffering of a patent
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erosion. they raised the target from 10 to 12 but it is still 5% below the current price. >> valeant has been a lot. third stock is lululemon they believe the stock history hitting bumps in the road is over they cite enhancement of what they call functionalty and they sell things everywhere improving in store experience is the upgrade. it is right now at 74. it raises the price of foot locker and sports good and under armo armour they think the entire -- >> your final stock is ttm technologies ttmi, this is your small cap called today the third biggest manufactures circuit board. some trusts start with the buy
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and $20 target a bunch of deals made by ttmi created the stable business. you see more deals ahead their target implies nearly 30% total and investment turns, sun trust starting ttmi, is the ticker of the buy of $20 target. tyler. >> brian, thank you. >> murdoch is selling most of the company that he built. what is next for mr. murdoch and clan president trump will speak live on deregulation, we'll bring it to you on the next hour of "power lunch" will start in two-minutes on a beautiful day in dc.
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see that's funny, i thought you traded options. i'm not really a wall street guy. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade the moment a fish is pulled out from the water, it's a race against time. and keeping it in the right conditions is the best way to get that fish to your plate safely. sometimes the product arrives and the cold chain has been interrupted, and we need to be able to identify where in the cold chain that occurred.
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we took our world class network and we developed devices to track environmental conditions. this device allows people to understand what's happening with the location, but also if it's too hot, if it's too cold, if it's been dropped... it's completely unique. if you have a sensor that can keep track of your product, it keeps everybody kind of honest that way. who knew a tiny sensor could help keep the food chain safe? right in the heart of the was in his financial crisis, and saw his portfolio drop by double digits. it really scared him out of the markets. his advisor ran the numbers and showed that he wouldn't be able to retire until he was 68. the client realized, "i need to get back into the markets- i need to get back on track with my plan." the financial advisor was able to work with this client. he's now on track to retire when he's 65. having someone coach you through it is really the value of a financial advisor.
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. disney is getting bigger will regulators who are trying to nip the at&t deal holiday cheer or holiday gear? fedex is getting ready for the big shopping season. there is an app for that no, not fedex. how you can buy and trade parts of a farrari i am brian sullivan, that's a cool story, we have got it the second hour of "power lunch" begins right now i am michelle caruso-cabrera checking in the markets right now, the dow hit a record high in early trading right now, the dow is lower by .1%. call it flat trading of russell. consumer discretions at the top. retailers out performing today, best buy is hitting an all time high and lululemon is at an all year time high and airlines are flying higher southwest and gains of more than
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2% for delta teva is soaring today, the company will cut its work force by 25% and suspending its dividends. take a look at twitter, shares are soaring today hitting a new 52 week high $22. $22.58 cents a gain of more than 42%. >> thanks michelle, i am tyler mathisen paul ryan is considering retiring after the 2018 midterm election ryan is serving his tenth term in the house he denied those reports saying he had no plans to leave jobless claims fall, that number beat analysts' expectations and apple most powerful computer ever, the imac pro is now available. it is nearly $5,000.
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nearly 13,000 for the fully loaded version disney, of course, announcing the deal to acquiring films and television baptist of rupert murdoch. julia boorstin has followed all of them and she's live in los angeles. >> reporter: disney is spending $52.4 billion in stocks for foxes and entertainment assets that includes cable internet network as well as businesses and as well as the strolling stake in hulu. disney's ceo is extending his contract, ceo iger >> i believe that if we pursue t it, it would require for me to stay longer. this is going to take a lot of
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energy and a lot of focus and i look forward to rolling up my sleeves and getting involved in the next few years >> reporter: of course, it comes on the hill of the department of justice suing to block at&t acquisition time warner. iger says he's not concerned of getting approval of the deal >> the aim is creating more high quality content and distributing ways where consumers prefer and consumers demand in today's world. this is going to enable more than that. we hope that regular authorities are looking with consumers in mind >> reporter: disney says they expect the deal to close within the next 18 months we'll be watching it closely as well as what other consolidations we could see in the wake of this megamerger. >> julia boorstin, thank you
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very much. properties and advertisers and even football. our regulatory countdosel at the competitive enterprise institute and he joins us now. i can guess i can see it, ryan, do you think particularly is going to be injured assuming disney's deals for fox's asset approved and do you think it will be? ryan radia >> it is going to be a tough road given the justice department shown an out date approach of the antitrust with its lawsuit deal with at&t and time fli netflix and amazon could face up serious rivals and hulu can gain tractions and disney and fox controlling hulu trying to start a launch streaming server and picking up more subscribers. this deal does not create a
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media company that is all that large when you consider the immediate land skascape and howt changed of the streaming service as well. >> this deal would have allowed five years ago the marketplace which is how antitrust determines if it blocks people out have grown exponentially. but, disney controls over hulu really makes it three players. amazon, netflix and the combined hulu is that enough to apiece regulators >> that means you can have one additional major player in that state. you have apple and if they do original content >> sure, you have apple as well and google is doing original content on youtube you have to look at other efficiency like themovie studi industry they're a huge distribution cost of 20 century fox and disney each have can cut down dramatically and confuse
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investment films at a time where hollywood is struggling to maintain its revenue >> i want to tell you what gabriel sherman of new york magazine tweeted out he says the president spoke with murdoch to make sure murdoch was not sharing fox news the person briefed on the call said that. what do you this oif thnk of tht >> the idea that the president is getting involved in the transactions is reviewed by the justice department and an independent way is not the right approach if that's the reason why fox news is remaining with murdoch, it does not go well for the independence of the justice department as an antitrust regulator. >> you did have doubts with this, did you? >> i did have doubts hopefully this time the justice department will recognize it is a procompetitive deal and won't block it because there is a
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$2.5 billion break up fee if the deal does not go through that could be a big hit to disney >> the scale have come out and saying they don't like this deal and it is going to shrink the amount of jobs they have because there will be fewer studios in the world to be combined of what fox had with disney. could movie theaters compa comps could be concerned about that? >> regal and cinemark, it is possible what this deal could do is left combining disney and fox bargain aggressively with the movie theaters it could translate to lower ticket prices for consumers. >> i got it. >> thank you, ryan >> all right, lets suppose for a moment that disney fox deal clears all the hurdles and what happens next of what's left of
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fox and what's happens for murdoch. lets bring in batali >> nice to be here >> just because the president asked murdoch if he was keeping fox news, that was a rhetorical question rupert murdoch loved fox news and he was never going to sell it they have sold the assets at a high, they seedy minute iss dimg returns down the road and they have kept the toys that they liked. the news channel and sports. >> it is the admission that they did not think they could compete at scale >> they know how to make money with news and they can keep on doing that >> can you do that without scale? because of the whole idea is you need scale there is a lot of
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talk of okay, you have these properties here and what more are they going to attack >> the problem of the network is broadcast network become sort of the showroom for scripted tv brahm programs you may not have a high rating anymore, it launches it for all the other platforms that you are going sell it to and now includes international broadcasters and streaming servic services >> the new york time calls this -- >> not being a shakespeare scholar, i cannot analyze that >> giving up >> i would say to some degr degree -- signatuurrender in a . he still wants to be a player and have relevant and the fact that he has a network. >> i don't know murdoch and i never met the man. >> i know that my sense is he's apublisher an
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a news guy, what he's keeping are news assets and sports >> ink in his blood. >> and live television he knows that in some ways entertainment programs have become a commodity and people can watch whatever they want you want to watch news and sports, you can watch it live and you can see commercials. >> one of the things that occurs here is that when fox had a production studio, television, fox television network could buy content from -- so it is going from one pocket into another >> and now this is money out the door because they're going to have to buy from disney's fox or time warner and compete with amazon and facebook and everything >> they could fill hours with reality programming that they produce or maybe give some of their fox news star platforms on
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fox primetime and putting more sports on. we don't know yet. nobody really knows. but, they are out of the production >> do you see these -- >> it makes them a buyer -- they are someone who leases it. >> do you see these assets and television assets here that are being kept by fox. do you see them -- do you see news corp. going private >> i think they want this thing to be what it is for a while and let it grow. >> it is going to drarg dog down earnings and at least how i see it we got breaking news on the tax plan, we got to go thank you very much for joining us >>
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ylan mui on capitol hill with the breaking news >> senator marco rubio will vote no on the tax plan currently $1,100 of the tax credit is refundable i asked him how high he needs to see that go? he says it is certainly higher than what it is now. he's in decisions iscussions toe it but he had no assurance that it will happen president trump says the tax credit will be larger than anticipated. perhaps, there is some room for negotiations there as of right now, senator rubio is saying that he's a "no" unless the child tax credit is increase >> ylan, he's been pretty steadfast on this. we talked about this on "morning joe" yesterday susan collins and marco rubio holding the keys to get this done susan collins wants a few things
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and the individual mandate and rubio have been steadfast on this the market did not move down thinking this will stop the deal >> reporter: so this is an interesting point because he did vote for the senate version of the tax bill even though the child tax credit was not all he had hoped it would be. it was on his biggest list of wanted to be now it is curious that he's taking this position wondering whether or not that the leverage of the swing voters have alabama and post doug jones and if they are using some of that to hold out some of the better deals >> laurrry kudlow was on yestera saying this is an obsession to senator rubio. >> there is expectations for senator mike lee who's been working closely on this that there will be an increase. the fact that he did not set a
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level says a lot previously he said the full $2,000 need to be refundable he seems to be walking back from that a little bit and giving himself some wiggle room to say yes. >> ylan mui on capitol hill, following this >> here is what's coming up on "power lunch." hedge is preparing to sell stocks we'll bring you that story and what it could mean we'll take you into the heart of one of the biggest shipping hubs in this country and we'll show you how fedex is handling this record shut upping holiday season and nike is kicking up a notch we'll tell you what's fuelling the mood and whether you should buy in that and more, coming up on "power lunch.
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sarah huckabee sanders commenting on sanders. >> the president did spoke to sanders not too long ago if the news is true, he's unhappy with it. the speaker assured the president those were not real report and they'll be working a long time to come.
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steve leaiesman is joining s on the update. >> when it was a decembsolate surface. consumer shopping, retail rising that's three times of what the economy is expected. here is the cnbc rapid update, 26% is your number now the range is 2.4% to 3.7%. >> bank of america is 2.4% >> good numbers throughout and pretty much for the fourth quarter right now. while the fourth quarter is looking better so is 2018.
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jan european president is seeing a better growth by 2018. europe european central bank is not to be out done. they got their forecast by 0.5%. the retail price is quite good it is the first month of the holiday season there is concerns that maybe they did november and will do a little bit less in december. we are often to a good start >> that increase in gdp, how much is that related to the tax plan >> a little bit but not maybe as much as the president would like they bump up in 2018 what they did not do is bump up the out lining years they don't buy into the idea of an upward potential. maybe they could be convinced. they see a bump to next year and it will go back down to what considered to be the trend growth around 2%
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steve liesman. >> thank you >> the dow is hitting an early hike tax reform is front and center for investors. how should you position your portfolio from equities to bonds or among or between or whatever. >> john bellos, and our chief market strategist with ab. thank you very much gentlemen for being here you say you would lean next year more towards non u.s. equities than u.s. equities, why in light of the fact that corporate profits are likely to get the significant boost if tax reform? >> first of all, they think these are going to be a much bigger boost in japan and europe just from the strength of the recovery and the fact they are further behind a business cycle. as far as the tax reform while i do think it is a market profit
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and a boost to the earnings, the issue is where is the surprises coming from? a lot of very positive expectations zone building into the stock prices and some aspect of the tax code could provide negative unexpected surprises. >> john, how do i make money in bonds next year? >> if i go back to steve's report what's interesting is the feds upgraded their forecast. they did not upgrade their inflation forecast they have an unchanged view of inflation. so, yes, growth is looking better but inflation still remains a sticking point the most interesting part were janet yellen is talking about the uncertainty there. they may need to rethink inflation. >> are you telling us it is save along the curve, what's the investment message after say all that >> that's exactly right. the place where we have been
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differentiated, we had health and over weight and maybe a little closer in that some of the fed hikes have been fully. and pushing back of the notion that interest rates have to go up we do think owning some interest rates make sense and i think interestingly, janet yellen would agree with that. >> you hint at some negative head winds around tax reform >> look, the issue is always about the unintended impact. for example, you will see corporations see a reduction in the tax rate that'll benefit the company with the highest tax rate of generated income there is about 10% of u.s. economies that can barely meet their interest payments on their debt
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the final tax bill preventing productivity of interest of 20%. those same companies would be severely hurt. they own a ton of debts. >> so john, do you like u.s. paper or do you like foreign emerging markets more? >> you know we like emerging markets. if i could just respond to that in the high yield market, there is a limitation on deductibility of interest expenses they are not taking away of the full productivity and most are benefiting because of the lower corporate tax rate as well the larger company will be on net better off and there are some companies that are affected and i agree we need to watch those carefully. the real line is most companies are better off >> john, thank you very much >> white house's press secretary sarah huckabee sanders commenting on the announcement
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of disney and fox. >> i know the president spoke to murdoch earlier today and congratulated him on the deal and to use the president's favorite word is this is a great thing for jobs and looking forward to and hoping to see a lot more of those. >> didn't really address the question which gave the assurance of new york magazine tweeted out saying that they spoke before the deal was announced, did i have that correct? >> the deal rinehaegarding whetr rupert was planning to sell the fox news >> exactly, that's part of what the question is about. we'll let you know if bitcoin is too boring for you, why not try this. we'll tell you how it works in today's "power pitch " we are waiting on statements om president trump on
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deregulation, we'll bring it to you live straight ahead. another day at the office. why do you put up with it? believe it or not you actually like what you do. even love it. and today, you can do things you never could before. you're working in millions of places at once with iot sensors. analyzing social data on the cloud to create new designs. and using blockchain to help prevent fraud. so get back to it and do the best work of your life.
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welcome back, we are waiting for comments from president trump and you can see the gigantic stack of paper, i am
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sure that's used as some kind of a prop i assume that cayla, the tax bill or a mock up? >> that's a pile of regulations. >> the administration loves to use props. you remember back during the healthcare debate, they had the previous legislation from obamacare and they compared it to the slim version. the administration is trying to put a point and a number on a notoriously hard to qualify and quantify issues of deregulation on a dashboard that they created. they say nearly 500 regulations have been withdrawn since this time last year they'll try to highlight this one in two out provision that the president during an executive order earlier this year for every new regulation put in place, every agency have to strap at least in two
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not two have been scrapped as a result and they'll set the agenda for the larger scale deregulatory agenda going forward. once you move beyond of the executive order phase, how do agencies on the ground work to strap some of these regulations which the president says are harm and growth. >> there is congressional review act which is put to work of the control congress called if you go back to rules if the proper checks are not done by the cost and effect etcetera, they can do a 51 vote in the senate and they are gone >> they have and that's something that has been very popular for republicans on capitol hill to tout as winds in the deregulatory spear those are limits though, michelle it is worth knowing that power the white house and congress
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have to roll back regulations. that is to regulations that are newly put in place that ability would expire around april or anywhere between april and june we have not seen as many of those in the last six months because there are so few regulations that actually qualified for that >> cayla here is the president. regulations, there is a lot of regulations thank you vice president pence, secretary chou and zeke. an incredible job, we are here today to cut the red tape of regulation for many decades and ever growing of regulations and rules and restrictions close to our country, trillions and trillions of dollars and millions of jobs, count less american factors and devastated many industries, but
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all that has changed the day i took the oath of office and it changed rapidly and you see what's happening you begin the most far reaching regulatory reform in american history. we approved long stall project like the keystone excel and the deta acce dakota access pipelines. we are scraping and doing a job and getting rid of the job killing regulations that threaten our autoworkers and devastated their jobs over the years but they are all moving back they are all moving back to our country. those companies are coming back and coming back fast we are lifting restrictions on american energy and we ended the war on cole. we have beautiful clean coal, one of the first actions of my
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administrations was to impose a two-for-one rule on new federal regulations. we ordered that on every new one regulation, too old regulations must be eliminated the people in the media heard me saying during the campaign many, many times as a result, the never ending growth has come to a sudden screeching and beautiful halt. earlier this year, we set a target of adding zero new regulatory cost onto the american economy today i am proud to announce that we beat our goal by a lot instead of adding costs as so many have done and other countries are doing in my cases, and it is hurting them for the first time in decades, we achieved regulatory savings, it has not happened in many decades. we blew our target out of the water.
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within our first 11 months, we cancel of delayed over 1,500 plans regulatory actions more than any previous president by far. >> and you see the results when you look at the stock market and when you look at the results of companies and when you see companies coming back into our country. >> and instead of eliminating too old regulations for everyone new regulations, we have eliminated 22. that's a big difference. we aim for two for one and in 2017, we hit 22 for one. by the way, those regulations that are in place do the job better than all the other regulations and they allow us to build and create jobs and do what we have to do we are now reducing the size and scope and costs of the federal
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regulation for first time in decades. we are already seeing the incredible results because of our regulatory and other reforms, the stock market is soaring to new record levels. 85 not including today and hopefully we'll set another one today. 85 since election day creating $5 trillion of new wealth and the $5 trillion was of three weeks ago so i assume that we probably hit six six trillion dollars almost. unemployment is at a 17 year low, wages are rising and economic growth have topped 3% and three quarters in a row now we had that and except for the hurricanes, we would have almost hit 4% and you remember how bad we were doing when i first took over there was a big difference and we were going down this country was growing economically down. small business optimism is at its highest point in 34 years.
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we are just getting started. we have decades of excess regulations to remove and help launch the next phase of growth and prosperity and freedom i am challenging my cabinet to remove unlawful. i want federal workers to push harder to cut more regulations in 2018 and that should just about do it. i don't know if we'll have any left to cut. we'll always find it we must liberate our economy from years of federal leverage and intrusion so that we can compete and win on the world's stage. when lyou look at the stock market of what's happening and they have a long way to go, much of that is what we have done with regulations for example, the current process
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for permitting infrastructure is unacceptably long. this chart, i love this chart. i showed this two months ago chris lidel. hold it up, chris. chris is not otall enough for this chart this is process that you have to go through to get permits for road ways. you have to go through this process and it will take many years, many, many years, right chris? and you have to go through nine different agencies and make 16 different decisions under 29 different laws it would take from 10 to 20 years and in some cases longer than that. by the time you finish, you probably gave up i saw this chart and i held this
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chart up three months ago and i said bring out that chart. it was a last minute decision. it really explains what a disaster it is we want to take the process down to maybe one year. we have it down to two we may be bring it down to two if the highways or roads are not good, we'll reject it. we are not going to approve everything for the most part generally speaking, it is a good thing and not a bad thing. cutting through this maze is critical to restore or nation's competitiveness. we are looking at the numbers and trying to average them out and people have no idea. they think the number in many cases over 20 years and we are bringing it way down besides this, you can see another really vivid illustration of the monumental task that we face. in 1960.
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there were approximately 20,000 pages in the code of federal regulations. today there are over 185,000 pages. so, you take a look at that and i assume that this is today. this is 1960 we'll cut our ribbon because we are getting back below the 1960 level and we'll be there fairly quickly. we know that some of the rules contained in these page haves been beneficial to our nation and we'll keep them. we want to protect our workers and our safety and health and water and air and our country's natural beauty but, every unnecessary page in this stack represents hidden tax to american businesses and workers. in many case, it means that projects never getting off the ground that's the biggest problem according to a survey by the national small business
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association, the average small business today spends $83,000 to comply with a single regulation in just its first year of existence. small business manufactures bearing an enormous of ongoing burden and speniding an average of nearly 30,000 employees each year it threatens our entire constitutional system. it does nothing other than delay and cause much more. it does nothing. congress has abandoned much of its responsibility to legislative and instead given unelected regulatories and regulators, extraordinary power to control the lives of others the courts have let this massive power grip go almost completely unchecked and almost, always ruled in favor of big
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government regulation is a stelch -- with no vote and no debate and accountab accountability now there is accountability. by ending excessive regulation, we are defending democracy and draining the swamp unchecked regulation underminds our freedoms and sapp, our national spirit destroys our companies we have so many companies that are destroyed by regulation and destroy jobs today's call to action is about regaining our independence and reclaiming our heritage and rediscovering what we can achieve when our citizens are free to follow their hearts and chasing their dreams when americans are free to thrive, there is no challenge too great or no task too large
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a we are a nation of explorers and pioneers and inventors and regulations have been hurting that and hurting it badly. we are a nation of people who work hard and dream big and never ever give up we are americans and the future belongs to us. together, lets cut the red tape. letsset free our dreams and yes, lets make america great again. one of the ways we are going to do that is by getting rid of a lot of unnecessary regulations thank you very much. thank you. come on over here. you are all apart of this. come on.
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>> so this is what we have now and this is where we were in 1960 and when we are finish which won't be too long of a period of time, we'll be less than where we were in 1960 and we'll have a great regulatory climate. elaine, are you okay >> yeah. >> one, two, three >> there is president trump giving a major speech. well, a speech about major
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regulations on how you roll back in regulations the number of regulations in the united states and trump administrations want to cut. by the way, you may have heard trump referenced chris lidel if that names familiar to you, he works in the white house's executive office as the former cfo of microsoft and general motors and among other corporations if that name sounds familiar, that's why >> i don't think we talk about deregulation enough. when you talk to business people, they are so excited of the attitude of this administration and the other administration is so different jay timmons that we had on a couple of days ago, they think the average of all manufactures in this country pay $19,000 per
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employee for the cost of regulations and small employers pay $34,000. >> that's one of the numbers that the president cited there i have to say that i think much of the stock market gains this year have more to do with this and the regulatory climate than it does with tax reform. >> yep >> scott mckneneilly and said t water boarding have stopped. lets go to the first breaking news to dom chu >> a 10% rise shares of snyders-lance. campbell soup have made some possible overtures this is all according to sources familiar you will watch shares both are moving on.
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snyde snyders-lance is a combination between pretty l azels and soup. keep it right after "power lunch. we'll see you after then (siren blaring) ♪ working as an emt in a small town usually means hospitals aren't very close by. when you have a really traumatic injury, we have a short amount of time to get our patient to the hospital with good results. we call that the golden hour. there's nothing worse than when we're responding to the hospital, and the hospital doesn't have the right specialist. evaluating patients remotely, by an expert,
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a clear picture is merging as who'll see the most benefit of this tax reform plan. dom chu is joining us now. >> michelle, i am going tell you who will have the most benefits. the team got together looking at the five years medium tax breaks, we'll count them down. energy, the biggest taxpayers out there, 35% tax rates nine, telecom and industrial have 32 and some of them are capitol and intensive industries having the highest tax rates and number five, 30% and financials and number two is healthcare of 26 that leaves the big number one
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is technology companies probably paying the least in taxes at least according to the most effective tax rate as for some of the companies, that's the most impacted goldman sachs has the highes rates out there, maybe that could be a beneficiary of tax cuts conocophillips, energy side, 49%. goodyear tire and rubber, 46%. j.b. hunt, 38% zions bank, 35%. companies goldman sachs tracks in their high-tax basket. >> thank withdryou very much. nike getting air, up 15% over the last month the stock is at a one-year high. straight ahead, we'll talk to a trader who calls it a screaming sell is he right? we'll debate that straight ahead on "power lunch. ...we've helped our investors stay confident for over 75 years. call us or your advisor.
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let's trade nike on "trading nation." highest level since early 2016 up 15% in the last month, alone. august research upgrades the stock today. craig johnson with piper jaffray looking at the charts. they've been strong recently weak longer term where is nike ee's stock headin brake?
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>> if you look at the choorart, where we are the last couple weeks, we just started breaking out. i think you're going to see a move in the nike shares up to $68, $70 a similahare, go back retest the old highs by like what we're seeing on the chart, good momentum, relative strength use shorter-term pullbacks to buy the stock in here. see the big base on the chart and level we just broke out from >> okay, larry mcdonald, the bear report, you heard craig's technical strategy the thing from the august note that stuck out to me most was retailers are going hat in hand to nike saying, please, help us boost sales. maybe they've gotten, as george costanza may have said, they've gotten some upper hand in the relationship is that a reason to own nike, larry, would you buy it? >> well, you're talking about shares that are up 35% since october. and you're also talking as inin shares that have had since 2013 substantial drawdowns. i mean, the time to buy nike is
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when you have a business cycle change and we've seen this many, many different times with nike 2013, 2015, you know, 10%, 20%, 25% drawdowns. buy it into fear, hold it for the long term. short term, it looks like a screaming sell rsi is through the roof. and i think the shares should be sold here. >> all right sell that. technically. craig says, looks pretty good, that's wee hy we do it both way, guys 3 thank you very much. for more "trading nation" go to our website, "check please" is next. >> now the latest from tradingnation.krns and word from our sponsor. >> when markets get volatile, don't be afraid to admit you don't know where things are headed when you're uncertain what to do, sitting on the sidelines is not a bad idea sometimes the best trade to make is no trade at all in other words, don't do something. just sit there
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down to the very server. it keeps your insights from prying eyes, so they're used by no one else but you. it. is. the cloud. the ibm cloud. the cloud that's designed for your data. ai ready. secure to the core. the ibm cloud is the cloud for business. yours. maybe some of you will remember marshall lobe, one of the most esteemed writers and editors from the 1960s, '70s, '80s, well into the '90s at "time" magazine. he took over "money" magazine and turned it from a struggling property into a money machine. then went on to edit "fortune" and made it a must-read business publication. he died on saturday after a long fight with parkinson's disease in 1982, he hired a kid from virginia, totally green, didn't
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know a damn thing about business, finance, personal finance, and he turned that kid into a pretty good person on that i owe my career to marshall loeb wedolences to lose a friend like that >> a great friend. what do we think the s&p is going to do next year? jp morgan is out, they think the s&p 500 kbogoes to 3,000 in 201. think sink niced global growth, things true this year, they think still true next year then add to that lower corporate taxes and rye ductieduction in regulatory boaurden. they think that actually adds significant source of upside to the markets. >> my, again, condolences. on a much lighter note, i'll give credit to denny's getting on the cryptocurrency craze, releasing the pitcoin, avocado seed says "dear millennials, pay for your avocado toast using denny's
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pitcoin. denny's a bit of humor "washington post" gave a review of buffalo wild wings "f," worst restaurant reveal i've ever read got to do something better with the new owners, arby's bitcoin. >> maybe buying bitcoin. >> or pitcoin. >> thanks for watching "power levera lunch," everybody. >> "closing bell" starts right now. and we do welcome you to "closing bell," i'm bill griffeth here at the new york stock exchange. >> hi, bill, from all the way up here in midtown, manhattan, i'm kelly evans at the yale ceo summit in new york today a few minutes i'll have an exclusive interview with short seller jim chanos. we're going to talk about other stocks, tax reform, setup for 2018 for the market and so much more. >> oh, yeah, a lot to talk about with jim let's start, though, with the


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