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tv   The Exchange  CNBC  December 16, 2019 1:00pm-2:01pm EST

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year >> 51st% year to day >> third for december expiration, twitter, bought it during the show, options upside at the 31 strike. >> i have to say questionable fashion decisions from you lately with the sad sample bag liking this stuff. >> okay. you like those >> very nice let the games begin right now. andrew >> queue scott welcome, everybody, i'm on drew ross sorkin. here's what we got ahead today despite the lack of clarity on the phase 1 trade deal, investors are cheering as stocks hit new highs. the question, of course, will be euphoria we will debate that and so much more breaking up, yep, it is hard to do we will look at why splitting up tech companies may not be the best answer to solving anti-competitive issues. a look at the medical bill and debt crisis in america we begin right now today with the markets, seema mody has those numbers. >> good afternoon, andrew. record highs here in the u.s
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in fact, report highs in europe as well. the msci index looks at the emerging markets across the world. sectors moving on this phase 1 deal the chip makers led by western digital and micron, both of these stocks getting an upgrade from susquehanna so overall positive reaction to the latest developments on the u.s.-china trade front we also want to draw your attention to shares of uber, getting a lift today it's up around 5% on a report that it may be in talks to sell its uber eats bes in india to a local player it's actually a strategy uber has used in the past to raise cash, selling its chinese ride hailing business to china td and the south asia business to grab. take a look at the stock up 5% still down about 33% from its $45 ipo price. >> thank you for that, we begin this afternoon with the very latest
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on the u.s.-china phase 1 trade agreement which isn't in the books just yet yep, there may be issues that seem to be getting lost in translation to get some right now, we are headed to washington, kayla tausche has the latest how to translate for us? >> reporter: well, i can try the negotiators are hard at work behind closed doors, trying to figure out what it would look like in both english and chinese. both countries rolling out the deal it does indicate they've agreed to the terms at least behind the scenes but the u.s. and china were selective in what they decided to disclose last week. first on agricultural purchases. the u.s. said it would be up to $50 billion in additional purchases by china china says it would depend on the market then on tariffs, china said washington agreed to a scheduled rollback the top u.s. trade negotiator bob lighthizer said on friday, that's not the case. lightlizer did acknowledge there may be some challenges holding carolina to account.
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>> we're going to sign this agreement. but i'll tell you there, the second phase 2 will be determined how we implement phase 1. phase 1 will be implemented right down to every detail it really is a remarkable agreement, but it's not going to solve all the problems. >> reporter: and perhaps some of the details in the different messaging is an indicator of the domestic political considerations that each country had and still have to make andrew >> help me though, with this do we think it's really lost in translation, bill murray, skarlth johanson style or do they understand what's going on and they don't want to understand, if you will? >> reporter: it really depends, andrew, especially on the tariff rollback portion of this i mean, there could be a situation where the u.s. is just holding out on announcing that, because they want to make sure they get to assigning. they want to make sure they get to some of those enforcement mile markers before they actually announce they've decided to do that i know officials are frustrated by the way the market tends to move on every single piece of news that
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comes out of this programs if they said they were going to roll back all these tariffs and china didn't deliver, there is worry that in an election year, the market could get ahead of itself and sell off on that. >> i think skorlt carlet johann would have gotten this the usmca is facing hurdles. we want to understand there as well. >> reporter: last week the deal announced between the white house and house democrats had one provision that had previously been a deal breaker for mexico >> that is the ability of the u.s. to have on the ground inspectors, actually making sure that mexico is delivering on its labor reforms. today, mexico's top labor negotiator is back in washington trying to figure out how this didn't end up on the ut caning room floor, how it ended up until deet we expect comments on whether that means going forward or mexico has to accept this provision in the deal. >> thank you for that. i imagine we will be talking to you a lot more today and throughout the rest of this week as this gets hammered out or
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figured out or translated. meantime, despite all this uncertainty about what's actually in the trade deal, markets continue to hit all time highs. will the market demand more clarity at some point or is this enough to keep the rally going i want to bring in the chief investment manager at wells fargo for the answer mr. mipisani, you are on the floor. do we need to actually translate there or is this unto itself translating itself >> right, the cynics out there, many are saying, wait a minute, this is not a trade deal it's a hiatus. we know it will continue into 2020 and a likelihood we could bring back more tariffs. that's true. clarity is a little better than it was a week or two ago look what we had the fed out basically future tral overall, clearly willing to step in. brexit was a huge defeat for labor. >> that is a positive for stocks
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whether you think brexit is good or bad let's call it a trade deal truce for the moment and global growth, we're not sure how clear the bottom is had. when you put it altogether, it's hard to argue at this point that there is less visibility than before and, andrew, if that could have been true, look at the vix. it's at 11 look at the historic highs and new highs we got in the markets right now. >> okay. so you heard what bob said, if you had to buy something right now in this, i'm not going to call it inplated market. i was told it was fabulous what would you do? >> well, bob's exactly right in a lot of ways, i think the fed being on this hiatus is more important even than kind of a u.s.-china trade truce, in a lot of ways. there is no doubt there is winners and losers, though, from the u.s.-china trade deal. the clear winners i would say energy and tech, right, 55% of the december tariffs supposed to go in were very specific to lap
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topts and cell phones and tech spending there is sa winner on business spending this should improve ceo confidence over time so maybe we get a little of that ever elusive capex spending. picking up in 2020 the consume were wins on this, this year. but there's losers as well certainly some of the losers include the wto. there is no enforcement mechanism here the wto could have been the enforcement agency but isn't and you've got some other areas that i think are probably going to be challenges for the markets to absorb around the losing side of this as well. >> hey, bob, you see it, you feel it, you are with the guys on the floor there how uneven is this we look at indexes it looks like everyone is buying with both hands, there is an unevenness in terms of how it's all you know happening in reality. >> well, in terms of thousand market is reacting, the cyclical sectors have all been moving in the last several months.
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even energy, which is a terrible performer. it's got supply problems, oversupply problems, have been moving so you look at metals moving up. you look at global industrials moving up. another one that i look at a lot is high yield market that's a real proxy how businesses feel in the united states those have all been moving up in the last several weeks that's a play on credit. not a play on interest rights. we're near highs on those. >> darryl, what don't you want to touch right now if somebody is thinking you know what, i missed the train, i got to get on the train, 2020 feels, i mean, what bob just said about the vix, how low things are, in terms of volatility, i should be on this train. already elements i imagine or certain cars on this train you would not want to be on. >> i think you have to stay away from some of the more defensive sectors, utility, staples, reit right here i don't think they make a lot of sense. a lot are trading at rich evaluations. we have been underweight small caps as well
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the earnings growth and the fundamentals just don't look well there they're under performing the s&p, the russell 26789 even though it's setting a new all time high, it's under performing by 600 basis points. what's interesting, too, about trade is, we got nothing from china on rollbacks of their tariffs, right, on u.s. products so any companies doing business over in china, those multi-nationals trying to export to china, they've got no relief in this kind of a deal right now. so, i think you got to fade those as well. >> hey, bob, we got to run final words, technical factors in terms of trading into the end of the year. southern funds want to be in certain names. certain funds want to lock in their gains. there is all sorts of things happening. what itself the one thing the average investor needs to understand about all of that >> that the role is generally positive going into the close. december, last year was such an outlier, it almost defied any rational expectation for what normally would happen. the role is generally positive
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i'm talking future's role, which will happen at the end of this week as well as going into the new year that's what everybody should understand >> good lessons there, gentleman, thank you both for hanging out this afternoon with us meantime, i want to get to chicago, i want to take a look right now, though, as shares of boeing they're down nearly 4% this follows those reports that production of the 737 max could be cut or halted phil lebeau, he's confirmed and has more details of where all this is headed he is live in chicago with the latest phil >> andrew, i'm not sure we'll get an announcement this afternoon, though. it is possible after the bell that we could hear from boeing what it plans to do with 737 max production we do know the board of directors meeting here in chicago. this is a regularly scheduled meeting. they are looking at the production plants for the 737 max. i am told from sources familiar with the discussion that the board is more likely to cut, to outright halt production as opposed to slowing it down any
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further. here's where the issues to consider all of the planes that had been built since march that are on tarmacs or out at moses lake or down in san antonio that are waiting delivery they've got about 450 of those when you take a look at boeing's monthly 737 max production remember it's at 42 a month. the lowest rate since 2016 we show that 57 there, because that was the plan. this year, they were supposed to build 57 per month by the way, the last time they had a production halt 2008 when there was a machinist strike approximately 12,000 works are out at the plant building the 737 max. how many might be alocated to other plants or have to be furloughed, that remains to be seen if they do a full on halt of production, andrew. >> stock down about 4% what itself knocks on effects, though it's not just boeing, to make the engines. we're talking general electric who else if you are playing dominos, who
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should you be paying attention to >> anybody who is attached to the 737 max. the bigger suppliers, spirit out of wichita >> that is a stock that trades in tandem with boeing. you got ge, which makes the 737 max engines as a part of its joint effort with saffron and you can look at the other supplies transdime or utx or honeywell, they all have a part in there now those guys don't have as much exposure as spirit. clearly, there is going to be a knock on effect. you know what you don't see in the stockmarket, it's clearly a concern, andrew, the smaller tier 2 and tier 3 suppliers, particularly out in the mask northwest. those are folks who if there is a halt in production the question becomes himself will they have to do something with their work load and will they ultimately have to potentially furlough some workers? >> phil lebeau, thank you for breaking that down we will be watching awaiting an
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announcement, meantime, here's what else is ahead on the exchange coming up, there's a lot of talk about breaking up big tech. is that a solution one expert says no it's time to regulate them like utilities he'll join us next. plus, 20, 30, 40, 50% off, it's the worst year for discounts since 28 for retailers. we'll look at what it means for the socks and amazon and the nfl want to create a digital athlete platfo platform th iiss the exchange on cnbc.
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welcome back to "the exchange." one of the big topics in wall street this year has been the push to break up big tech. >> that narrative might likely continue to 2020 some say the move would be difficult and may not be the solution joining us right now is a man who says that very same thing. he worked at ibm for 38 years. he lived through the anti-trust battle they are out with a new book ibm. the reinvention of a global icon it explores that legal battle and lessons for tech companies today. good morning, congratulations on the book interest thank you. >> i want to really try to draw parallels to your own experience
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to where we are today when you think about big tech i'm thinking about the amazons of the world and you know people don't talk about microsoft, apple, obviously facebook you can go down the line you don't think that breaking up big tech makes sense, that that's not the ultimate answer from a competitive perspective why? >> well, there are two reasons one is they're very convenient they have these large platforms, particularly facebook, where you can reach out to literally billions of people so why would you want to give that up? second, you do get cost performance, particularly from amazon in a lot of the goods and services that it sells so it's convenient for the consumer on the other hand, there are also problems with that. in the case of facebook, we worry about the kinds of information we're getting. whether it's accurate or precise, in the case of amazon, is it crushing bricks and mortar
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companies and also what are they doing with our data, privacy >> let me ask you a question, one of your answers, i don't want to put words in your mouth, an idea that ultimately they should be regulated therefore, not broken up regulated as a utility. >> correct >> my question is, if you do that, do you believe they can innovate at the same pace and level they have before >> yes, they can because the innovation involves expanding to different markets and around the world and that can be reg lated in the sense of making -- >> if i have a regulator literally sitting in my office the way some of the utilities do, frankly the way the banks do, they're sitting on my shoulder looking telling me everything i want, apple wants to add something new to the app store. they have to call somebody on the phone and ask them permission first what cause do to the culture >> not necessarily you only regulate the things that need to be regulated.
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for example what they do with your information your personal information. do you keep it accurate? do you get permission? the europeans are authorizing these companies to do all kind of new things, all kind of innovative things. they're also having them to gain permission from you and i before they do anything with that data. >> those are standard rules you can put in place i will make it more complicated. there was piece about amazon and aws cloud service. >> right >> this idea that they are advantaging their own services, if you will. >> correct. >> over that of third parties, by the way, this is a similar issue, though different than some of the issues on their marketplace, the retail marketplace, where they advantage their amazon branded product over a third party in the case of aws, i should say it's all open source so there is an issue whether that model works at all. but anyway, the bigger issue here is do you want them to be able to do those things? i'm not sure that's about setting a basic rule i think you probably need real
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regulators in there talking to them all the time. no >> they talk to them all the time now and they have for many years this is not new. the conversation has been going on for a long time they have lobbyistles. they have regulators to deal with they're doing it in europe they're doing it in the united states, they're doing it in japan. probably in china, although it's not clear to me exactly what it looks like, they're doing that now. >> do you buy the mark zuckerberg argument, you are hearing it in silicon valley a lot, if you try to break us up, hinder us in any anyway what you are really doing is you are advantaging the chinese? >> see, i disagree with that. >> it's not my argument. it's mark's. >> right right. i would say if i were sitting in his shoes. but he is also being able to demonstrate and get to 4 billion people and he continues to fwro at the business regardless of whatever the chinese are doing and the chinese are growing as well and the world's population is
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growing as is the population of people using facebook. i don't see facebook slowing down any time soon >> james, if you are a betting man, we got to run, because we have investors who watch the program, do you think the government will go after any of the big fang companies >> i think so over the next five years, you will see first regulation and then there may be spinoffs it won't be anything dramatic. because it doesn't make sense to and in the end, it just takes a long time to break up a company and it hasn't been done since 1982 with at&t >> the book ibm the rise and fall and reinvention of a noble icon great to see you this afternoon. thank you for the conversation. >> thank you when we come back, a lot more on the exchange shares, rise of therapeutics are higher following good news, that took place on friday for one of its ceos to join us live with a closer look at the drugging question the impact on his country and the quality of flatwear. we are live in new york with
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that story >> reporter: well, andrew, i am at cheryl manufacturing. the last manufacturer of utensils in the usa. they make force, knives and spoons i will give you the truth on why they're about to win big coming up next! (soft music)
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the markets. the dow off the highs. 202 the high of the day. the nasdaq leading up now more than 1%. i want to get over to sue herrera. i love some sue herrera. cnbc news update hey, sue. >> i love to see you, too, thanks, andrew here's what's happening at this hour, everyone senator lindsey graham says president trump will announce an american troop draw down from afghanistan this week, speaking from kabul graham said the number could be reduced from 12,000 to 8600. >> our goal is to withdraw our forces based on conditions that would warrant withdraw we cannot withdraw in a fashion to allow international terrorism to rear its ugly head again in afghanistan. >> thousands of students flooding the streets of new delhi to protest against the india citizenship amendment bill the law against citizenship to non-muslims who entered india illegally to flee religious
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persecution. and the wife of zim butzim*- /* ba we -- zinbabwe she was ordered to remain in custody in a bail hearing. i may have mispronounced her name you got the drift. that's the news at this hour. >> sue i do it every day as you know me and names >> oh, no. >> the teleprompter is not my friend telling you what else is coming up on "the exchange" this afternoon. ahead, merchandise hasn't been this cheap since 2008 it's not discretionary spending that's racking up credit card debt teel we'll tell you what is. how is this for a gain more than 100% in years. inus ao of this mystery stock jos nd the politics of flatware, it's all coming up on "the exchange. kwlt
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welcome back to "the exchange." we're about to play a good game. it is time for rapid fire. we can play rapid fire bingo
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today. here are the stories who will be breaking the stories down robert frank is here eamon javers is here >> thank you >> such pressure >> is there a winner or loser? >> there are winners and losers. i will tell you about a winner, first up on the game, citigroup upgrading goldman sachs from buy to neutral to buy from neutral, the price target implying nearly 12% upside what's behind the call citigroup sees limited downside for goldman sax noting it is weathering the environment and other banks. gold man saches. are up the question is can they keep winning? >> it's up 37% this year over the st past three years it's basically flat. the banks the best argument you can make right now is it's really cheap it's unlikely to get that much cheaper. >> so this is the downside story in your mind
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>> yeah. >> although to be sure, we heard josh say this is a thing undergoing a major transformation gold man sachs is moving into providing banking service and credit cards to people who may not have the best scores goldman sachs is a incredible story. >> do you see a fall from great, a white shoe master now hawking credit cards. >> the gamble has to be whether they can make the consumer thing work what i don't get i don't understand, all the of the hype around this apple credit card with goldman have you seen this thing advertised anywhere? >> no. >> you what you can into an apple store see them talking about it >> no. >> tim cook what are you doing really i think about this all the time i think this was supposed to be the game changing thing. maybe it becomes a game changing thing. >> i think goldman is safe to be boring again remember they were at the white hots political university. my perspective in washington. >> the vampire squid
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>> to the vampire squid they were on fire now in an era in which you have a president who tweets, goldman is nowhere to be seen. that's probably where they want to be. very under the radar, oddly enough. >> who won that round j you now? >> i think you did. >> okay. at one point >> i think i did >> at one point, now as the game progresses i think negative one point. >> we can talk about discounts, up and down here we all love them i love a discount. i'm the cheapest you know that. >> you are >> retailer is offering some of the steepest discounts since 2008 this is what i have been waiting for. averaging 28% last week. this might seem a great deal they are warning the mark downs will squeeze margins and put companies at a higher risk of default. sometimes when i'm so cheap i should think of the other side, have more sympathy >> with your money >> yes because i'm waiting. i'm trying to like rob the
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store, if possible not really rob the store just say zplg we are all too seeing this in research notes. stifel nicolaus put out a note for ultraspecifically saying they were a little concerned because they were seeing elevated discounts, promotional activity last quarter down, granted they had a great quarter. then we saw some competitors start to keep up so you are right it's great for consumers and hooray for us. but it squeezes margins. >> and it's one of those rounds. >> i give you that >> just add, every single year it's the same pattern. we see holiday sales are going to be terrific, up 3-4%. right before christmas oh, things are really disappointing. it looks like they are down. after christmas it turns out everything was up 3 to 4%. every sing him year the same pattern. it will be a fine year, consumer confidence is strong wages are strong >> i love you, you won that round too. next round >> i'm never coming back. >> this round, though, this is up your alley, where we're going
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next round this is all you, all d.c >> a lot of pressure. >> senator elizabeth warren sitting do one cnbc's john harwood. she had some very harsh words for american corporations. >> i am proposing something called accountable capitalism. you may remember that for more than a century, american corporations owed multiple duties they owed duties to their investors, but also to their employees, to their customers, to the communities where they were located to our country and then in the late '70s an economist comes along and says, hey, there's a novel idea. how about if you only owe any kind of duty to your investors, which means make it all about profitability. >> that means that american corporations today, these giant corporations, they have no loyalty to america or to american workers >> okay. what chance does she really have that's my question for you >> she definitely has a chance last time around we thought
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donald trump never had a chance. he definitely did have a chance. >> he was ahead in the polls almost from this point on. >> with this environment, with this political chaos out there, you can't write anybody off right now. >> a different question. there were democrats, all call them wall street democrats that don't really like elizabeth warren but they really don't like the president some will say, i will hold my nose for elizabeth warren if she was even in that role, i won't worry too much she is going to do any of these things she is talking about, because she won't be able to what can she do without the help of congress? >> what she can do depends on how being her coat tails are if she gets in and has a democratic house beholden to her, there is a lot she can do if she gets in with republicans coming the house, there will be gridlock, not retoric am points scored i have been waiting for the left to come up two a laugher curve of the left basically say figure we spend money, we will see an increase in gdp over the long term, measure that out the same way the right suesed the laugher
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curve to decide tax cuts >> do you think capitalism can do that? >> she thinks she is a capitalist to a nerve. this is one effort top trending stories within six hours it has almost 30,000 views. so i think my personal opinions aside, clearly a lot of people want to hear what she has to say. >> a eamon's point, let's assume there is a will to do it what can you do to legislate to make companies be responsible to communities, to employees, to all these other constituencies >> a fair question >> there you think what they're doing now the business roundtable everything else >> do you think they're doing the right thing or no? >> i think they're doing it, they're forced to by employees and customers. >> is it real or marketing sflits opportunistic it's moving in the right direction. i don't think you can legislate what she wants to do >> one quick thought, every election year is about the economy, stupid, famously. roo right. 2020 will be about the economy, yes, but about capitalism,
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itself this debate that we have been having at cnbc will be on the campaign trail front and center. >> i know they're going to kill us, we have other things to do can you, can they, can you vote on the economy and at the same time look at this good economy, it's hard to not look at this xi and not think it's good and decide capitalism is terrible? >> yes. >> how is that with you? >> you absolutely can. maybe because the good xi gives you a little license to say, how should we make this perfect? ultimately this will be a debate of the future of capitalism. this won't be a centrist republican center of commerce. >> you want a raise. you don't have to keep talking quit already, eamon. >> she got two points. you want to tie? >> no, eamon won that. >> can you just go now, robert >> our final round you got to hear this we're not done yet we got more to this story. >> i thought we voted him off. >> the success of the business can hang on the whims of
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lawmakers. right now. to tell us about a curious story of such a company. good afternoon >> reporter: hi, andrew. well, i am at cheryl manufacturing. this machine is known as the niper. it is one of the final steps in making a piece of flatware it removes the bar from the top of this fork and ends up with this finished product. now, pretty soon our friend jeremy here is going to be joined by a lot more workers at this factory that's because the new defense bill will require the military to purchase flatware that's made in america and cheryl is the only company that can do it. >> manufacturing is a very important strategic asset for the united states. we need to keep as many factories making things in the u.s. as possible. >> reporter: now, you might be wondering how did this provision even get into the defense spending bill, well, it just so happens this district is represented by democratic
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congressman anthony brindisi, a freshman in a red region and somebody on the fence about impeachment. let's say how leadership has a vested leadership in making sure he's happy >> ylan, i read the factory if this comes through, the orders would go from a million to maybe two to three million they would only add five to ten additional workers beyond their existing 56. is that right that all of this would only add five to ten workers no that plant? >> reporter: yeah, what they're telling me is the number of workers is much larger they could probably add 20 to 30 workers if they get that number of sales so you know back in the day this factory was employing something like 2,000 people. it was the largest employer in here in central new york clearly, you know, if those numbers are coming down. but this area is looking for jobs and this could be one way. >> how does that play politically? >> well, everything is local politically. i would wonder why any
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congressman can commit to anything in advance when you get these goodies in a bill at the end of the day the question is will this move that congressman on impeachment? i don't think so >> before you go, it's the question i was askings all the time, are all forks made with that little bar they have to take off i just never knew this >> reporter: yeah, well, eventually this is why this helps hold the fork in place to make the rest of the product when they're done, they need to take it off so you can actually eat it >> i like that fork better, you can put more stuff on it i want to buy it with the bar at the end. >> to twirl the spaghetti. >> ylan, thank you for that rornt, thank you rohel is our winner. >> i'm the biggest loser. >> no, no, no, robert is the biggest loser. i'll be back we'll play again thank you all, appreciate it. meantime, millions of americans have faced trouble in
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the past year thanks to crippling medical delaware we will take a dip into the numbers. before that, take a look at tesla right now that stock is on pace for its best day since october and its eyes closed since august of 2018 mr. musk can be happy this follows news that mercedes is delaying the u.s. launch into electric suv "the exchange" is back with more - [narrator] at southern new hampshire university,
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we're committed to making college more affordable. that's why we're keeping our tuition the same through the year 2021. - [woman] i knew snhu was the place for me when i saw how affordable it was. - [narrator] find your degree at . welcome back to "the exchange" this afternoon new research showing 37 million face medical debt. sharon everson joins us with how many more americans are tackling or not tackling this debt burden >> good afternoon. americans are spending more on healthcare right now than any other developed country. on average almost $17 for every $100 we spend goes to healthcare expenses when it's an unexpected medical
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bill many are using plast tobacco pay for it one-third are in medical debt. and their survey showed nearly 60% said they used a card because they video no way to pay for it now some are using a medical credit card to cover out of pocket expenses. it's often interest free for a few months after that you have to pay off the full balance to avoid the deferred interest. the rate on a medical card 27% which is 10% higher than the average credit card. >> usury rates here's the thing the question i really have, which is if you are in one of these situations, is there anyway out any alternative to to what's going on here? >> well, there are ways to try to negotiate and figure themselves outs of this debt one of the things you need to do is negotiate with the provider if you can ask them if can get on the a payment plan and have something more affordable for you.
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then also if you have it on the credit card, get out of that high interest rate credit card put it on a zero balance transfer 0% interest for a lower rate card the other thing is, this is the best part, you may need somebody to help you. so if you can't deal with the bills, yourself. you may be under medical stress if you can't deal with them. get a medical billing advocate >> i think i spoke with a doctor that said people these days sometime now try to negotiate with them in advance. >> oh, absolutely. you can do that. i walk in like the sucker. i don't usually know how much it is they do it and hand you the bill as you walk out the door. >> you can do research and figure out how much does this procedurenormally cost you can ask an insurance company in my area the average may be different depending on where you live. then tell the provider, listen, i can pay this but it's going to take me ten months to do so. can we get on a payment plan. >> i like that strategy. good to see you. we are going to talk about
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shares of verizon computers. they're climbing today, up now more than 70% this year as one of its rare disease drugs gets a positive fda panel vote. we will talk to the ceo of that company right after this short break. at fidelity, online u.s. stocks and etfs are commission-free.
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welcome back to "the exchange." shares of verizon are higher now this is the second day after receiving a unanimous vote of support from an fda advisory panel for a rare eye disease drug, it's on the final approval, the fda expected to make the decision by march meanwhile, verizon seen major gains, it's up more than 100% in the past three years look at that chart a thing of beauty. joining us exclusive verizon therapy put ticks chairman and ceo tim wahlberg along with biotech and mech terrell you are the expert, mech so begin take it away. >> well, thank you jeb, thanks for being here. >> hi, meg. >> tell us about what disease this drug aims to treat? it's a rare eye disease called
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thyroid eye disease. tell us about that this would be the first drug to treat it, right? >> sure. yes. there are no fda approvements, medicines approved at this point in time, meg nothing is culpable to these patients as all this disease is characterized by scene of the accident inflammation behind the eye that actually causes the eye to significantly bulge out these patients get doubled or blurred vision misaligned eye all those patients go on to get three-to-five surgeries per eye. it's a very debilitating disease that up to 6% of patients can actually go blind as well from the fda is said to decide by march whether to approve your drug it doesn't have to follow your advice, often it does, the fda has been approving drugs way ahead of schedule. what is your expectation as to what we might see from the fda.
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approved early we're still counting on that date and expect to work with the fda through that period. we see significant opportunity for this medicine. it impacts 15 to 20,000 pashties each year. we got 750 million peak sales this medicine. really exciting to help the patients with significant debilitating disease >> what's the cost of this >> we have not set -- as you heard there's significant values seen by the physicians and need by the patients. after we get approved we'll discuss the price. >> i think jeffrey put out a number they say conservatively speaking maybe $100,000 per course.
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i want to you about drug pricing and your approach now. why was that the right move when drug prices are in such focus politically now? >> i think the key thing is the value su value, what it can do for patients and the key thing is the out of pocket cost for patients we have given away 2019, $2 billion. the key thing is having responsible price increases and making sure that we continue to create access at the lowest out of pocket cost available to the patients >> we'll continue watching the story. congratulations and we wish you luck on the rest of it happy holidays
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>> thanks so mump fch for havine the nfl teaming up with amazon to help keep players healthy. you'll like this story the details of what it means for the future of football ♪ ♪ ♪
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minnesota vikings running back becoming one of the latest nfl players to go down this week leaving the game after hurting his shoulder much of the league focus has been own preventing head injuries, the number of concussions fell to a four-year low last year. trying to expand its part nershnepartnershi with amazon web services >> help us understand what the partnership with amazon can do >> we collect a lot of information about our players. lately we have been integrating. we look at injuries and rules and game play. ou players are on the field.
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equipment, surfaces on and on. we've been doing a lot of it especially in the concussion space looking at video reviews about 750 concussions on field understand the mechanism of those injuries and better ways to prevent them. with aws, the point is there we're doing a lot of this manually as we integrate that data and has machine learning and ai into it, how quickly we with learn more >> the idea and i assume there's sensors on field and the play s players, are there sensors on the player >> there are up in their shoulder pads. >> will there be more sensors in the future >> maybe over time >> the idea is you're look at this data and deciding we'll change the rules so how have you avoided what took place over the
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weekend? >> i'll give you an example. as a result, we change the kick off a couple of times. we saw higher than any other play in terms of injury rates and concussions. we were able to take a look at the different plays and say these certain block types, wedge blocks, the speed the players were reaching was abnormally high and the plays were different. we eliminated the blind side block this past year we saw a lot of concussions occurring. those sorts of insights which we'll get from the partnership as we look at the trends -- >> does the machine learning identify for you >> it probably does. we look at the data. we think we're seeing this >> how much of this is about the equipment itself and making the equipment better how much is about the rule changes? >> it's all of them. >> are are you trained and operated >> the player, the equipment they are wearing all of those things.
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>> you guys going to be a good team can you really make the mel mets that much better >> i think that contributes to the decreased response in concussions last year. we were down we'll see more and more new models come out. we just put together a $3 million challenge. >> is there any early insight this far in this program >> the mechanisms of the injury, where we see players getting hit. i'll give you an example a quarterback sees the world very differently from a corner how frequently they get hit. the magnitude, the direction opinion. >> wearing a different helmet. >> we're working towards that. >> what would the difference be? >> quarterbacks, when they get a concussion, the back of their head is hitting the ground they are holding onto the ball
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>> thank you appreciate it. >> that does it on the exchange. we're going to kick it over to our good friends on power lunch where i'll be headed in just about 15 minutes to talk about nbc universal. power lunch starts right now andrew, we look forward to that thank you very much. welcome, everybody here's what's new at 2:00 on "power lunch." phase one of the trade deal is nearly in the books. the ink not quite dry but two key details that could derail the deal and we'll break those down for you plus, boeing could halt or further slow the production of the 737 max as it struggles to regain certification for the plane. the stock taking major hit on the reports. we have the details on that one. later on, a booming billion o tech stock


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