Transcripts For CNBC Power Lunch 20170915

That exclusive cnbc investigation coming up as power lunch starts right now welcome, everybody i am Brian Sullivan. It may not look like stocks are doing much the dow is up 43 points. Modest gains but dont let the numbers fool you. As michelle said, those are all new intraday highs for the major indexes and hopefully for your money as well. This despite the north korean threat oils recovery helping some of the battered energy stocks, which is helping the overall market some big individual stock stories that you should be following, equifax battered again following a downgrade. That stock now down 35 since the data breach was announced a week ago and oracle down 7 , thats on concerns about its current quarter. Ty brian, thank you very much. Welcome, everybody im tyler mathisen, and heres what else is happening at this hour macys ramping up for the holidays, hiring 80,000 seasonal workers. But that is down from last year. Google reportedly considering investing a billion dollars in lyft the two already have strong ties back in may alphabets stealth driving car unit wamo signed a deal with lyft to work on driverless technology. And you may never have to worry about finding your car keys again. The german automaker bmw says it may replace keys with mobile apps instead what happens if you forget your phone . Oh, well breaking news right now on the economy. Steve liesman here with a rapid update steve. Tyler, thanks very much weak data this morning causing economists to bring a sharp decline in their outlooks for Third Quarter growth the rapid update now declining by 30. 6 percentage points. We dont see big changes like that very often after weaker retail sales and Industrial Production reported this morning. The range of very wide range of 1. 3 to 2. 8, q2 tracking remaining at 3. 1 . I divided up whos where into optimists and pessimists emers pier pont still optimistic moodys analytics still optimistic but look at the rest atlanta fed down by 300. 8. Barclays 0. 8 bank of america 0. 8. Goldman sachs down 0. 4 some of this hurricane related not much some of it is prior weakness from july. Even when you take out hurricane effects from the Industrial Production report there was still weakness that con be explained by the storms. Tyler . Steve, thank you very much. Worth watching of course now to two other developing stories worth watching beyond the markets. Could impact your money, however. First the terror attack in london second the latest provocation by north korea. Gamma acton is live in london. Sherry kang is live in seoul, south korea. Hance nichols standing by at the pentagon gemma, lets start with you. Take it away thank you so were talking about an incident this morning in which an improvised explosive device went off on a underground train line in rush hour at around 8 20 this morning you can see behind me the entry fought underground station, parsons green, where that occurred let me bring you up to the human toll so no deaths but 29 people have been hospitalized with injuries that have been categorized as nonlifethreatening most of these were indeed flash burns is caused by the fireball that came out of the device. And some people were also stampeded in the rush to exit the train and the station. Theres a big inquiry under way with lots of authorities working together, namely the metropolitan police, the british transport police, and the Domestic Intelligence unit mi5. Prime minister theresa may has also hosted today a cobra meeting, which is the National Emergency response unit. And she said at the end of that clearly this was a device that was intended to cause significant harm, so at this point merciful that there have been indeed no deaths. Let me hand it back to you gemma, thank you very much. Meantime, north korea firing a Ballistic Missile across japan, creating new tension in that region sherry kang is live in seoul with the latest. Sherry reporter hi there, tyler lets talk about where it was fired from this is significant because it came from near capital city of pyongyang and north korea experts say that this is actually the north korean way of preventing the potential Surgical Strike of its missile facilities by countries like the United States. Lets talk about the direction not exactly in the direction of the u. S. Territory of guam but again, as we saw late last month, it was in the direction of japan but it sends a similar message that its indeed capable of launching its missiles that are able to reach u. S. Territory if you look at the distance this particular missile traveled, according to south koreas joint chiefs of staff it traveled 3700 kilometers this is actually farther than any north korean missiles in history. So certainly it certainly looks like north korea is making progress when it comes to its Missile Technology but what stays the same is the reaction coming from all these relevant countries that have interest in this region. First of all, south korea conducted its own missile exercise in its reaction japan understandably so saying that this kind of behavior is not to be tolerated. In terms of the u. S. Reaction, we heard from the u. S. Secretary of state Rex Tillerson calling for more action, direct action from countries like china and russia and of course china not happy with this kind of finger pointing, saying that this is between washington and pyongyang. Tyler . Thank you very much chery, appreciate it brian . Lets get the Defense Department angle on this and check in with hance nickels live at the pentagon. Ive been talking to defense officials all morning and what theyre saying is clear, that north korea has clearly demonstrated the ability to hit guam what theyre also saying is this is now back in the diplomats court. This has been very clear throughout the morning they said diplomacy is in the lead remember on monday we had those new sanctions by the u. N. And theres some skepticism here at the pentagon on whether or not it would actually modify kim jong uns behavior then about midweek we started hearing rumblings that intelligence was picking something up that they might be moving some mobile launches, they might be preparing some sites. Lo and behold last night, they launched now the response is in the diplomats court weve heard from tillerson were going to hear from u. N. Secretary haley as well as h. R. Mcmaster here in a little bit. And crucially, were going to hear from donald j. Trump, the president of the United States hes going out to Andrews Air Force base its the 70th anniversary of the air force. Happy birthday to the air force. Hes going to be surrounded by a b2, an f22 as well as f35 those are all aircraft that have stealth capability thank you, hance nichols. Lets stay on north korea and bring in meredith sumter, asia director at the eurasia group. Sung yoon lee professor of korean studies at the school at Tufts University and anthony ruggiero, former deputy director. Professor, well start with you. Weve had a long group of diplomats and former members of the Administration Come on cnbc for weeks now saying at some point were probably going to have to live with north korea having a Nuclear Weapon and that sanctions arent going to work you take issue with that youve written a couple of op edds why wont the u. S. Use its full sanction power against north korea . You think sanctions havent worked yet make the case. Well, sanctions, the toughest sanctions on paper will be no good if they are not enforced. Sanctions take time for these measures to take effect, at least two years, perhaps even more, as we saw in the case of iran getting iran back to the negotiating table. And its no secret that no country, no u. N. Member state including the United States and its allies, have really faithfully enforced sanctions over the years you know, they say all politics is local so is geopolitics, International Politics its really the internal dynamic in the Korean Peninsula that drives kim jong un to do these things, to get us to be inured to their periodic provocations, missile and nuclear tests, and to accept them as a nuclear taste. They have a compelling need to one day dominate, bully, embassy clait, extort that other korean state across its southern border the one that is far more legitimate, successful, attractive, and a magnet to your own people so they have a need to bully south korea, and the way to do that is to get the u. S. To not aband abandon, if not abandon then certainly downgrade its alliance and support for south korea. And theyre making progress. Anthony, if you read professor lees oped, he says up until 2016 u. S. Sanctions against north korea were weaker in kind and type than they are against sudan, zimbabwe, cuba, congo. Do you agree with that you were part of those teams that pushed sanctions. Is he right . Could we do more and would they work if they were stronger and better enforced . Professor lee is exactly right. You know, north korea sanctions before february 2016 were the eighth strongest in u. S. Sanctions. Its now up to fourth. Were finally the Trump Administration is finally going after north koreas International Business network theyre going after the nonnorth koreans, in particular russia and china and their facilitators of sanctions of asia the next step that is necessary is going after medium and large size chinese Financial Institutions the question is whether the Trump Administration is ready to do that. In terms of whether they can be effective, the best case is iran it worked. There are a lot of people who said iran sanctions were not going to work. And those same people now have to admit the north korea sanctions have the chance to work as well meredith, i want to see whether you agree with what the professor and mr. Ruggiero just said as to whether we have enforced the sanctions, whether the sanctions themselves have been rigorous enough but what does ultimately what ultimately happens if the goal of the sanctions is either to get regime change, and i dont know i cant really cite a case where regime change has been caused by sanctions or we want to bring it to its knees or make it negotiate what is the transmission mechanism through the country that leads to either of those outcomes absolutely. The goal of all the sanctions and the regimethreatening pressure that the u. S. Description and its allies are focused on is forcing pyongyang back to the negotiating table. Kim jong un has shown no indication that he is remotely interested in negotiating any aspect of his weapons programs because he sees before the refinement of these programs is as critical to his own regimes livelihood moving forward. So he is not going to agree to any negotiations unless he has no other choice. Now, my colleagues are right in that the sanctions thus far have not been enough to compelt tim jong uh to make that choice. So thats why you see the u. S. Focus on so what is the no other choice then . The no other choice, for example, in a crude sense would be if china would cut off Energy Resources to pyongyang to bring that regime to its knees, which beijing has no interest in doing so, of course. So beijing is willing to apply more pressure on north korea, incremental pressure, and beijing will continue to work with washington to do so but beijing is not interested in making any kind of pressure move that it fears would compel the regime in pyongyang to be destroyed. Professor lee, you empower a bully sometimes by giving them attention or at least acknowledging that they are a bully. Kim jong uns only goal is probably the survival of his family and his dynasty but he has no children yet we dont know about his health is maybe another option to let them wallow, dont give them the aattention theyre obviously craving . They will get our attention when the United States in the mid 1990s assumed that in the wake of the fall of the berlin wall, the collapse of the former soviet Union North Korea especially going through a period of famine and in the wake of the founders death in 1994 would go way, probably collapse in the foreseeable future, in the next few years north korea grabbed americas attention by doing what . Firing a missile over japan in 1998 that led to a flurry of diplomatic activity, vigorous reengajt and extortion by north korea, and the u. S. Gave north korea 300 million of food aid for what for the empty privilege of inspecting an empty cave north korea has been very crafty it has wrested away from the worlds biggest powers over the past quarter century at least 20 billion worth of aid all for what for repeated lies of denuclearization north korea has a game plan. It is not just reacting to external stimuli professor lee, one of the underlying assumptions, and we heard it from meredith, is that you must get china to go along do you believe that, or can the u. S. Do this on its own . Does it have enough tools in order to get north korea to the point of collapse, that it would be interested in trying to come to a deal . I believe the u. S. Has the tools to get china on board, and the way to do that is not through moral suasion. Highranking u. S. Officials periodically flying to beijing, exhorting the chinese to do the right thing, to behave like a responsible stakeholder and so forth. The way to do it, rather, is to present the chinese with some biting economic disincentives. Find chinese banks big banks and stateowned companies that in willful violation of both u. S. Sanctions authorities and u. S. Security Council Resolution go on abetting north koreas proliferation, money laundering, smuggling activities secondary sanctions socalled, its been very, very productive in the case of iran. The u. S. Hit mr. Ruggiero is the expert on this, but the u. S. Fined a major french bank 9 billion, and the bank complied, pleaded guilty, paid the fine and severed its relations with iran thats the way to do it to isolate north korea and choke off its streams of revenue by fining china streenlt economic power is i think what youre describing there. Mr. Ruggiero, what does north korea want and it feels to me like its a very layered problem here. Does it want to get the United States out of south korea . Does it want to intimidate the United States by the use of or the potential use of Nuclear Weapons into not defending south korea if north korea were to bully them and on the question of getting the United States out of south korea, not a player in that part of the world, it would seem that they would have some support from china and russia, who would love to see the United States out of that part of the world. Right the kim regime does not have a suicidal wish in using a Nuclear Weapon against the United States theyre not going to attack the United States with a Nuclear Weapon they want to hold the United States at bay, and they want to when they decide to attack south korea or they pressure south korea to do things that they want, they want the United States to blink. And the same thing with japan. And i think youre exactly right. Its not a surprise that china and russia are the biggest sanctions evaders here because they benefit from the United States being tied to the north korea issue with no real solution in sight because people continue to believe that either north koreas the most sanctioned country in the world or if we just negotiate a freeze again and again that it will somehow work i mean, there is no proven evidence that negotiating a freeze will get us to denuclearization or that north korea wants denuclearization at this point so for right now the goal is to protect ourselves through strangling north koreas revenue. And i think the issue we havent talked about is human rights and we should be getting more information in to the north Korean People so they know what their regime is actually doing to them. Meredith, i want to advance a little bit, what were to happen if kim jong un were to die tomorrow would the north korean state open up . I mean, if our goal is to remove him somehow. Would it open up would somebody else in his family an uncle step in . Would it become the sort of south korean model we think, or would this continue on kind of like cuba with raul castro i think given that the kim family has been at the core of north korean power for decades, ever since the country was founded, you would see immense confusion and chaos within north korea as you have Different Levels of power in political circles. You have the old guard that is dying off from his father. You have um and coming military generals or officials that are close to kim there would be a great deal of chaos as these people come together to try to figure out what are they going to do without a kim leading the country. Adding to that complexky is china and south korea, the two closest countries, who have very little visibility into north korea since kim jong un came to power. They would also be incredibly nervous about a regime implosion scenario without a kim at the helm of the country. And that ups the risk around the Korean Peninsula significantly it would be quite a moment to make an understatement lady and gentlemen, thank you so much meredith sumter, professor sunyoong lee and anthony ruggiero, formerly of the treasury department. It is friday so the weekly recount numbers are up lets focus on oil they are down seven to 749 versus one week ago. That is the biggest drop since january. However, keep in mind this number certainly could be skewed by the continued impact of Hurricane Harvey you cant drill an oil rig if the workers cant get to the job site or its washed out. Down seven lets see what happens next week all right. Still ahead, a rare and exclusive look at the inner workings of Airport Security at l. A. X. What is being done to fight threats and keep you safe. We are the only news outlet to gain access, and you do not want to miss this but first, u. S. Ambassador to the u. N. Nikki haley and White House National security adviser h. R. Mcmaster expected to speak at todays White House Press briefing twn e terror attack in london and north koreas latest provocation, theres a lot to discuss. Youll hear it here. Power lunch back in two. Hey, hows it going . Um. Who are you . Im val. The orange money retirement squirrel from voya. I represent the money you save for the future. See . Were putting away acorns to show the importance of being organized. Thats smart. Whos he . Hes the green money you can spend now. Whats up . Oh you know, gonna pay some bills, maybe buy a new tennis racket. Tennis racket for a squirrel . Hes got a killer backhand. When its time to get organized for retirement, its time to get voya. The battle for tax reform continues. I think im going to read that same sentence many, many times over the next few months one of the most critical people in that battle is senator orrin hatch because the committee he chairs, senate finance, will shape the final version of any tax bill ilan mui sat down for an exclusive interview with the longstanding senator and she joins us now reporter the senate will leave its own stamp on they entire process and one key point of disparity with the white house is whether the corporate rate can really go down to 15 hatch didnt seem that optimistic in our interview, though he was more confident about the prospects for getting tax reform done this year. The president wants it down to 15 that would be wonderful if we could get it down there. Well be working to try to get it down there. I sincerely doubt that well be able to get that get to that level on the Corporate Tax were going to interrupt this tape and go to the White House Press briefing we will pick it up later lets watch. Tirelessly with our partners to prevent attacks. And of course the United States remains committed to defeating terrorist organizations as well as their evil ideology the president has been unambiguous here energizing our defeat isis campaign and calling on muslimmajority nations to combat extremism and to end financing of terrorist organizations. We will defend our people and our values against these cowardly attacks, and we will always stand with countries around the world that do the same now i want to turn to President Trumps trip next week to attend the 72nd United Nations General Assembly the president s consistent message across all of his engagements throughout the week will emphasize three goals common to all nations who will be gathered there. First to promote peace second, to promote prosperity. And third, to uphold sovereignty and accountability a Peaceful World depends on the contributions of all nations we must share responsibility for interNational Security while each country protects the security of its own people prosperity is also a shared responsibility the president looks forward to furthering economic cooperation, investment opportunities, and new business ties with other governments and businesses across the world as always, this administrations ironclad commitment to free, fair, and reciprocal trade and access to markets will be the bedrock of our economic talks. Sovereignty and accountability are the essential foundations of peace and prosperity america respects the sovereignty of other countries, expects other nations to do the same, and urges all governments to be accountable to their citizens. That accountability is broken down in places such as venezuela and syria. And we also see today revisionist powers who are threatening the sofrntd in the greater middle east, eastern and southern europe, and in east asia let me quickly run through the president s schedule on monday the president will join senior u. N. Leadership and the leaders of more than 120 other nations to discuss reforming the institution. The president will express support for secretarygeneral guterress reform efrlts the United Nations holds of course tremendous potential to realize its founding ideals but only if its run more efficiently and effectively. That day the president will also meet with the leaders of france and israel, two of americas closest allies while their conversations will be wideranging, we expect that irans destabilizing behavior including its violation of the sovereignty of nations across the middle east to be a major focus. Monday evening the president will host a working dinner with latin american leaders hes looking forward to discussing the crisis in venezuela as well as our increasingly strong economic ties, shared goals for elevating the prosperity of our peoples, and the extraordinary success of likeminded latin american nations in recent decades. The president s Tuesday Morning speech to the General Assembly will emphasize the need for states to promote peace and prosperity while upholding sovereignty and accountability as indispensable foundations of international order. He will urge all states to come together to address grave dangers that threaten us all if nations meet these challenges, immense opportunity lies before us later that day the president will have lunch with u. N. Secretarygeneral antonio guterres, meet with this years General Assembly president , mr. Miroslav wajdocec of slovakia, and meet with the emir of qatar. In the evening he will host a traditional diplomatic reception. On wednesday the president will meet with the leaders of jordan, the palestinian authority, the united kingdom, and egypt. He will host a working luncheon with African Leaders to discuss how the United States can help african nations develop their economies, address urgent challenges, and strengthen security relationships and economic relationships between our nations. Finally, on thursday the president will meet with the leaders of turkey, afghanistan, and ukraine. The latter two countries in particular have suffered direct and persistent attacks on their sovereignty in recent years. He will also host a lunch with the leaders of south korea and japan as kim jong uns most recent Missile Launch demonstrates, north Korea Remains one of the worlds most urgent and dangerous Security Problems it is vital that all nations Work Together to do our utmost to solve that problem. With that ill turn it over to Ambassador Haley thank you very much and i will tell you that next week is not going to be short on topics i think first of all we can all say it is a new day at the u. N the u. N. Has shifted over the past several months. Its not just about talking. Its about action. The members are starting to get used to act, whether its security Council Resolutions, whether its with u. N. Reform, whether its with peacekeeping were starting to see a lot of changes at the u. N theyre all anxious to see what the u. S. Delegation looks like next week, and you think they will be heavily impressed with the fact we have the president , the Vice President , the secretary of state, many members of the National Security council coming to really show the u. S. Strength that we have in the world. Obviously this will be the first time that the president has addressed the General Assembly they are all very anxious to hear what he has to say. And i think that he will make quite an impact. In terms of all of the issues that were dealing with. We have three events that will be extremely important first, the president will highlight the u. N. Reform event. It is very, very important weve got a massive reform package being led by the secretarygeneral that really streamlines not just the processes but also the budget as it goes forward and makes the u. N. Much more effective we basically have the president headlining a u. N. Reform effort which would really support the secretarygeneral. But the impressive part is we asked other countries to sign on to their support of reform and 120 countries have signed on and will be in attendance. Thats a miraculous number the Vice President will be doing two very important briefings hes going to do one on Human Rights Council now more than ever human rights matters. We say all the time if a government doesnt take care of its people bad things will happen and i think were seeing that in multiple places and thats all the reason why the Human Rights Council needs to be effective. We have offered reform i think the Vice President will go and not only support the reform but talk about why its needed and the areas that are really needing to be addressed when it comes to human rights. The second one hes going to do is on peacekeeping and in the last several months we have taken every peacekeeping mandate and changed it basically, we have saved half a billion dollars in peacekeeping, but before anyone thinks thats a travesty, basically, the way they handled peacekeeping in the past was if there was a challenged area they would throw more troops at it. But they didnt see if the troops are trained or give them the equipment to do their job. Now were going towards the political solution making sure the troops are trained and armed. Making sure were more effective. So its smarter and it cut half a billion and in some cases were having to increase in some cases were having to decrease having the Vice President talk about the importance of the peacekeeping being effective is going to be very important then as i said, there are no shortage of issues with north korea being front and center iran will be an issue. Syria will certainly be talked about. Terrorism efforts and how we counter that is a huge topic on what were dealing with. And obviously the humanitarian issues that we face around the world. So with that i think the General Assembly is going to be quite active next week and i think the u. S. Is going to be very strong next week and we look forward to a very good week the gentleman in the center yes. Thank you, general. My questions about north korea, which is perhaps the biggest Foreign Policy challenge for President Trump right now. About a month ago the president issued a threat to north korea he warned of fire and fury and as you know, ambassador, at the u. N. Security council youve imposed tougher sanctions on north korea. Both of these efforts do not seem to be changing their behavior is it time for the u. S. To change its approach to north korea . Is that something youre contemplating . And general, if you could weigh in on this as well id appreciate it. I think what was really important with north korea is we try and push through as many Diplomatic Options as we have. If you look at the resolution thats have passed in the last month, the two of them, they cut 30 of the oil they banned all the laborers they banned 90 of the exports they banned joint ventures weve basically taken, and in the words of north korea we have strangled their Economic Situation at this point. Thats going to take a little time but it has already started to take effect what we are seeing is theyre continuing to be provocative theyre continuing to be reckless and at that point theres not a whole lot the Security Councils going to be able to do from here when you cut 90 of the trade and 30 of the oil so having said that i have no problem kicking it to general mattis because i think he has plenty of options. General, can you weigh in on that too id just emphasize the point that Ambassador Haley made these sanctions are just now taking effect. Whats really important is rigorous enforcement of those sanctions so we can let the economic actions and diplomacy progress as best we can. But i think we ought to make clear whats different about this approach is were out of time as marAmbassador Haley said befe were kicking the can down the road and were out of road for those who have been commenting about the lack of a militarys option, there is a military option. Now, its not what wed prefer to do. So what we have to do is call on all nations, call on everyone to do everything we can to address this global problem short of war. So that is implementing now these significant sanctions that have just now gone into place. And it is convincing everyone to do everything they can and its in their interest to do it whats different i think about this approach to north korea is worth noting first of all, there is consensus among all key nations that denuclearization of the peninsula is the only acceptable objective. The second thing is this is not an issue between the United States and north korea this is an issue between the world and north korea. And the third recognition is there is a lot that we can do about it together. And so we need time obviously for any strategy to work it is a sound approach to a very difficult problem, and well see if it succeeds Ambassador Haley, in a Conference Call preceding your briefing here jonathan alterman, from the center for strategic and international studies, said that next weeks unga will be as much the world taking measure of the United States as it is the u. S. Speaking to the world he went on to say that the unga because of its very quick meetings is sort of like speed dating from hell and that its a very sophisticated dance that neither secretary of state tillerson or the president have particular strong point on what would you say to people who are wondering how the u. S. Will do at next weeks unga i think theres a lot of interest in how the u. S. Is going to do and theyre going to find out were going to be solid. Were going to be strong if you look at all of the meetings that the National Security team has, these are important meetings these arent just wasting time this is going to talk about perform. This is going to talk about the issues in north korea. This is going to talk about the issue in burma and what were dealing with there venezuela, all of these issues no one is going to grip and grin the United States is going to work and i think with all of the challenges around the world i think the international communitys going to see that. This is a time to be serious and its a time for us to talk out these challenges and make sure theres action that follows it questions from some of the people outside this room in addition to what we do militarily, as a humanitarian effort and weve been criticized for not being involved in humanitarian effort too much, especially by the third world. So when you go to new york, in addition to addressing the security measures, how are you going to address the criticism about the u. S. Not leading humanitarian efforts we actually have led humanitarian efforts and continue to. Human rights in general is very important. Thats something weve been loud on, which is the fact that you have to protect human rights but the humanitarian side of what were seeing in south sudan and the democratic republic of congo, what were seeing with the Syrian Refugees that are in turkey and jordan, the fact that we are trying to deal with burma and find out ways that we can get humanitarian access in there, yemen is something that the United States has been working very closely with the saudis on and the u. N. To try to make sure we get humanitarian access so we have been as active and vocal and leading the charge on humanitarian access in all of these areas. And we are making a difference i think just in syria weve had over 3 billion that weve given in terms of helping that situation. Venezuela, you saw what we did with the sanctions, but were making sure we get that. Right now in burma were taking that very seriously, and thats of utmost importance that we get front and center on that one you mentioned the obviously terror incident overseas in london the president tweeted this morning that it was sick and demented people who were in the sights of Scotland Yard. You may have seen Prime Minister may said it was not helpful for people to speculate. Did the president share information that he wasnt supposed to . And if not, why was he speculating . I think what the president was communicating is that obviously all of our Law Enforcement efforts are focused on this terrorist threat for years. Scotland yard has been a leader as our fbi has been a leader so i think if there was a terrorist attack here, god forbid, we would say they were in the sights of the fbi i dont think he meant anything beyond that. Im sorry im not clear. He was saying generally terrorists are a focus for Scotland Yard or was he saying in this specific incident Scotland Yard knew potentially this was coming . I think he means generally this kind of activity is what were trying to prevent. These organizations that are responsible for it, whatever comes out of this investigation that remains to be seen. It is likely that Law Enforcement had been working on that problem call with Prime Minister may . I was not on that call this morning. Ambassador, to you on north korea. Obviously theres more u. N. Security Council Action that could be taken are you at all hopeful that theres any chance for a full oil embargo as this administration had wanted, or at what point President Trump himself said this was a small step, the last u. N. Security council vote disagreeing with you but secretary tillerson agreed it had been a small step step. At what point does the administration take a bigger step and put tougher sanctions on china to put pressure on north korea . First of all lets talk about what a big sanctions resolution this was the first one was a billion dollars. The second one was 1. 3 billion not counting the 30 decrease in oil. We did a 55 and just imagine if this happened to the United States a 55 reduction in diesel and oil. Overall ban of natural gas overall ban of any substitutes overall ban of textiles. Stopping the labor program, which we call as modernday slavery. Stopping all joint ventures. So Foreign Investment goes in there. We have cut off now 90 of trade going into north korea and they are saying that this was so you know, whether some believe its big or small, i think what the president s saying is this is just the beginning of what we can do. So its going to be by the time we get going on this, if we have to go further, this is going to look small compared to what we do but no, it was a massive sanctioned bill, and i think the fact we had a 150 record and you have china on board and russia on board, i think thats very important weve cut 30 of the oil is there more you can do theres always more you can do but then you get into the humanitarian aspect of it, which is at what point are you going and actually hurting down to the people of north korea . But we will always explore all options that we have yes. In the red you said that syrias going to be on the agenda. As you know, today turkey, russia and iran agreed to deploy 1,500 monitors in the Idlib Province does that leave the u. S. Behind . And what exactly the focus will be when you talk about syria in the u. N. Next week and general, if i can, you said that the meeting between the president and Prime Minister netanyahu would talk about iran. How much of the Peace Process with the palestinians will take place in that meeting . Thank you. I think the efforts in syria have been remarkable, both syria and iraq, to see how we have really bulldozed through isis in the way that we have shows how strong the u. S. Has been in partnership with them. But i think were also looking at postisis what does that look like and i can tell you, iran is not going to be in charge and iran is not going to have any sort of leadership in that situation to where they can do more harm. But syrias always going to be a topic. I think we continue to be strong in making sure theres no chemical weapons, in making sure were looking at the humanitarian situation but the u. S. Is a very Strong Partner in the resolution for syria and will continue to be until we know that everythings stable does not include the u. S. . I think were not going to be satisfied until we see a solid and stable syria and that is not with assad in place. But what we are going to do is continue to be very effective and be a part of that process so we get to a resolution ill just say that of course the president will talk about the prospects for lasting peace between israel and the palestinians among a broad range of regional issues with really all of the leaders hes meeting during the week. Ambassador, two quick questions. The first one is the fact that president putin and president xi jinping wont be there, will it have an impact on the outcome of whatever youll discuss on syria and north korea . And general, youve been insisting a lot on the respect of sovereignty wouldnt an investment in peacekeeping mentioned be part of getting involved and having a stronger impact on this . I do think its still going to be strong and have an impact because youve got two very strong Foreign Ministers from russia and china that are going to be there. And the idea that were going to be talking about syria and north korea and iran and all those other things, i think it will be serious discussions. And i think the fact that president xi and president putin couldnt be there is not going to change the effect of the talks we have next week. [ inaudible ] theyre not going to show up thats their choice to not show up. U. S. General assembly is not a substitute for bilateral relationships with any nations and as you know, the president s been working very closely, especially with president xi, on this common problem. And this world problem of north korea. So those discussions will continue and it will continue in the context of murlt lateral engagements but also in context of our bilateral relationship with china back in the back. Thank you, madam ambassador general, a question regarding etiquette. In the past president s have copiously avoided certain world leaders. A decade ago president bush avoided president ahmadinejad at the u. N. Will the president speak to president maduro at all when he is there yeah, i think its unlikely that hell speak with president maduro as you know, the United States designated president maduro after he victimized his own people, denied them their rights under his own constitution and i think as the president s made clear, hes willing to talk at some point in the future, but it would have to be after rights are restored to the venezuelan people two questions one, what is the future of india at the United Nations membership and the Security Council because Prime Minister modi brought up this issue with President Trump. Well, i think that Security Council reform is still being talked about and i know that its something that india wants many other countries want it as well well have to wait and see are there any indications right now that sanctions will work toward north korea . You have to look at how much has been cut off theyve already started to feel it but theyre getting ready to feel 90 of their exports going away 30 of their oil imagine what that would do to the United States if it was there. If you look at i was looking at what north korea its a fullscale economic blockade suffocating its state and its people this is dramatic and not only is it dramatic, but youre looking at peru has dropped ties thailand has dropped ties. Were seeing so many just get rid of either the barmeses or the trade that theyre doing there is no way that north korea doesnt feel this. Now, how they choose to respond, this is totally in their hands on how they respond. One more question. Ill let you take the last question i appreciate it so i was wondering we talked a little about the president , the speech hell deliver on tuesday. But im wondering if you could talk in any more detail now and im sure well get more detail later. Will he be sending directive messages about iran and north korea in that speech are there any more specific things and also Ambassador Haley, i wanted to ask you, on the question of u. N. Funding, i know reform is probably an important part of this question but as a candidate President Trump was then candidate trump was somewhat skeptical about the reach and the import of the u. N. , the point of it longterm. As president im sure hes learned more is the u. S. Committed both to fulfilling its obligations and where does it stand in terms of the voluntary funding Going Forward . To start off with the speech that the president gives, i think you can see it for yourself i personally think he slaps the right people, he hugs the right people, and he comes out with u. S. Being very strong in the end. Well, its i have seen it, yes and then the second part of it, the u. N. , when i originally spoke with the president what i said is well see what we can make of it and thats the thing, is were creating an opportunity. Were making the most of it. Were moving Foreign Policy. Were changing the way peacekeeping is done were really bringing up human rights and more importantly, what i appreciate is they stopped focusing on the commas and the periods and were actually acting were actually seeing strong things happen. And so i think the president has always believed theres Great Potential in the United Nations but i think now the world is seeing it, that it is actually changing and its actually becoming more effective. Will he affirmatively articulate his intention to continue traditional u. S. Funding at full levels i think youll have to wait and see. Thank you very much. Okay. So u. S. National security adviser h. R. Mcmaster, u. N. Ambassador nikki haley wrapping up their comments to reporters there, talking about the president s schedule at the United Nations General Assembly next week, also taking questions about this mornings latest Ballistic Missile launch by north korea. Lets bring back sungyoon lee, professor of korean studies at the Fletcher School at Tufts University sir, thanks for sticking with us you heard nikki haley there. She says these latest rounds of sanctions are dramatic, theres no way north korea doesnt feel this, 90 of trade will be cut off, 30 of oil. Is that enough to get them to the table . What more could be done . It could be enough. But it needs to be maintained. Pressure needs to be sustained north koreas not going to feel the pinch within the first few days of enforcing sanctions. The real danger is, as weve seen in the past, the u. S. Has been prone to prematurely relax sanctions for fake concessions, lies on the part of the north koreans. Re remember a very hardnosed u. S. Administration that spoke of axis of evil, i loathe kim jong il president bush once said, yet when north korea escalated in a major way with its First Nuclear test in october 2006 the Bush Administration completely turned around and gave north korea basically whatever it wanted, resuming dialogue, delisting north korean accounts in a bank in macau, resuming food aid, taking north korea off the state sponsors of terrorism list, turning a blind eye to north korea having built a Nuclear Reactor in syria which the Israeli Air Force bombed in september 2007 so the real danger lies in the Trump Administration possibly with the next big north korean provocation settling for wi thats always a possibility. Quickly, how long will it take before heighten sanctions really create results . How long well, our aim it will take at least one year or closer to two years or more as we saw in the case of iran the intention is not to induce regime collapse. As a result of his diminished ability to pay off his generals, the men with the big guns, he will not make that decision to disarm and reform. We, the u. S. Need to communicate constantly to the kim regime that there is a way out. We dont have to do that thats a possibility but of course, kim will not make that determination until he has to. Professor lee, thank you very much for joining us and sitting through the News Conference with us, thank you for your thoughts. Thank you, cnbc exclusive look of l. A. X. Security. What the airport is doing to keep travelers safe in a post 9 11 world, you dont want to miss that well take you behind the scenes, next not rebalancing your portfolio. Pursuing your passion, not reacting to market downturns. Focused on what you love, not how your money will last through retirement. Let us help you with those decisions, and get on with your life. We make it easier to plan for retirement with day one target date funds from prudential. Look forward to your 401k plan. The now 16 years since september 11th terror attack, billions of dollars have been spent. In a cnbcs exclusive report, Morgan Brennan was allowed to look at Los Angeles International airport. She joins us now the 2. 2 millions of tons of cargo passed through l. A. X. Last year the terrorist threats there is high thats the reason the budget tops 200 million in 2016. The tsa have done a good job some of the biggest threats are coming from below the wing we are behind security inside hidden passage way at Los Angeles International airport where the public is not allowed. A Multi Agency Police operation is focusing on the people who work at the airport itself to find anyone deemed an Insider Threat when we work this detail, we have zero tolerance. Means something small could turn into something big. When you look around this terminal, what are you seeing . I look around for travelers and look for criminal element, something that sticks out and needs to be looked at a little bit more reporter it starts at 9 00 a. M. In a Briefing Room at the Aviation Police head quarter. As teams of officers prepare to head out, captain stalling tells us there is a clear game plan. Reporter what do you expect to see today we usually want to see high visibility in a certain specific area and also, we want to address the Insider Threat reporter the operation has begun. As we ride up the escalator with lieutenant acosta and it does not take long for something to happen okay, we are on our way reporter as we navigated elevators and restricted passages, we whine up on the Airfield Police are questioning this worker, the employee had an active warrant for a pending dwi case hes going to be arrested. Reporter how real is the inside threat . We break to Airline Security managers and everybody is aware of this c it goes hand in hand at criminal activities that you may see at the airport that we Pay Attention to by criminal activities, it could mean anyone that has access to the planes they are smuggling these items and at what point do they start to smuggle a bomb on it becomes a real threat since 9 11 we are focused on passengers os of course, people that work at the airport, well have to start looking as well. Exactly the big bombing of a russian jet liner out of an egyptian airport was on the top, gutted in from the tarmac lacks security there yes, thats a huge concern but also just in the terminals do you know why you are pushed to take your car out and not stand near the entrance to the terminal it is a security reason and not a travel reason. Morgan, thanks. A big warning, facebook and google are like Surveillance States could they face the heavy hand gerenofovnmt supervision, the second hour of power after this break. Some things are simply impossible to ignore. The strikingly designed lexus nx turbo and hybrid. Lease the 2017 nx turbo for 299 a month for 36 months. Experience amazing at your lexus dealer. Thank you so much. Thank you so were a go . Yes we got a yes what does that mean for purchasing . Purchase. Lets do this. Got it. Book the flights hai si si ya ya ya what does that mean for us . We can get stuff. Whats it mean for shipping . Ship the goods. Youre a go you got the green light. That means go oh, yeah. Start saying yes to your companys best ideas. Were gonna hit our launch date scream thank you goodbye let us help with money and knowhow, so you can get business done. American express open. From godaddy in fact, 68 of speople who have built their. Website using gocentral, did it in under an hour, and you can too. Build a better website in under an hour. With gocentral from godaddy. When this bell rings. It starts a chain reaction. Thats heard throughout the connected business world. At t Network Security helps protect business, from the largest Financial Markets to the smallest transactions, by sensing cyberattacks in near real time and automatically deploying countermeasures. Keeping the world of business connected and protected. Thats the power of and. Welcome back to the second hour of power lunch. Record high for the dow and s p 500 as investors ignore Nuclear Threats and another attack in london the pressure is heating up the government is beginning to recognizing them ratings fumbled. It appears the people are getting fired of all the on screen debating. Looking inside the number, we debated. Power lunch starts right now all right, folks, welcome to hour two, lets get a check on the markets for you, all three of the indexes are record high the dow of its best weekly gain of the year. Right now the dow is up 47 point at 22,250 in change. S p 500 is up a massive whopping 500th of a percent, how about that and the nasdaq. Oracle is falling and carnival is down after getting downgraded to neutral equifax down on other 4 today is more of the effects of the data breach ripple through that. The semi stocks are moving higher since july. All the name in the semi etf aiman jabbers is live at the white house tonight. Reporter the new sanctions where the United States won against north korea at the u. N. Earlier this week. Here is what Ambassador Nikki Haley had to say moments ago in the Briefing Room. I think whats important of north korea is we try to push through as many Diplomatic Options that we have if you look at resolutions that have passed in the last month of the two of them. They cut 30 of the oils and ban all the labor and 90 of exports and they ban joint ventures. We take in and in the words of knee yar north korea and we strangled their Economic Situation at this point. Hr mcmaster is also in the bro Briefing Room today. He was asked about the president s tweets today, looked like Scotland Yards have had these people in their site a lot of people speculated the the president is reviewing some information. Hr mcmaster no, the president is simply talking about Scotland Yard being on the case in terms of pursuing terrorism suspect generally and not giving away something specific of what the british is up to in this particular case, michelle. Thank you very much eamon. Is there any other kinds from the president dining with mr. Schumer and pelosi talking about daca the president today is tweeting up a storm and also talking about espn and then an anchor criticism of him there it is really potentially a consequence shl week hes going to have meeting with leaders around the globe and everybody will be watching what are the special pit balls and twists and turns that you need to watch out for and he needs to watch out for given the situation of north korea and you have these sanctions are starting to work and we are seeing north korea firing more missiles and fuelling more heat none the less, hes got to continue to marshal the world against north korea. So the pit ball is getting into some issues with china where he starts to call them current manipulator and attacking them on trades and unfair trade practices. Thats where hes going to have and everyone if thats popular at home on the campaign trail, hes going to have to hold his tongue this week in new york so rebreathe the room basically. Lets go back to the i want to michelle and brian to jump in here lets go back to the famous dinner on tuesday night where there was a deal that turned out to be a less of a deal and the next day, it was a lot of very confusing messaging here sarah i dont know what got out of control here whether it is the democrats jumping the gun or they were so eager to come out, hey wer got a deal wu maybbut m deal, we get to an agreement, what went wrong there . Why was there so much confusion yesterday and encolluincluding e speaker of the house kind of distance himself from what he heard out of the white house i think the president , you know is known to have calls after their first deal and talked about their share great press and he was eagere and he was eager to do another deal and for many conservatives coming out of the meeting, the bloom is off the rosa little bit on President Trump. He made some statements to mrs. Pelosi and Chuck Schumer i dont think he knows or ever will know. They really liked mr. Schumer. [ laughter ] should we find some joy in this maybe i am a Glass Half Full on a friday sullivan. You will be Glass Half Full all the way in should we be happy that the fact that the president is sitting down and something we have hardly seen for the past really 16 to 20 years. Is it in some what i know it is frustrating for the conservatives, is it in some ways what we have been waiting for for years . Certainly i think you would take it on face value, the American Voters want the two parties to Work Together and they want to see progress in washington and they want to see problems solved. If you consider it under those terms, yes, i think it is very good however, there are very, you know, if this was tax reforms or healthcare or any education issues, i think this is a great move on immigration, the president s base will be completely unfor given. This is where i think President Trump gets out ahead of himself. Yes, we need to find a solution to the daca issue. He needs democrats to do it. The they he handle it doing something on loopholes for democrats. That would have been a better political move i dont see immigration getting resolved now after the way it is handled and the way it is unroll sarah fagen, thank you very much markets are higher today, hitting all time highs why are investors so complacent and will anything rattle them . Lets bring in charles swab and our ron isana. Why is that and is that justified and how do you see it . Liz ann. If you look back at history and not just provocation by north korea and although you can use that as guide. Other events similar to that and even things like terror attack, unless they turn to prolong activity or has an impact for economy and oil installations, it does not tend to have a long Lasting Impact if luke ook at what north korea have done, you have seen a spike in volatility, which spike that we see is a little bit less. That does not mean that environment lasting in gratuity. The momentum driven aspect of it and earnings and for now have been more important for a market standpoint for whats going on for north korea. So globally, you have synchronized Economic Growth and different rates however around the world. It is still Strong Enough to support Financial Markets and the dallollars weakness the fe seems to be laying off you have less concern of the Interest Rate environment here an we did a few months ago does that mean evaluation wont stretch . Thats yobeyond on the eye of the be holder. On a relative basis, probably averaged here and under valued over seas. Is janet yellen more dangerous than kim jongun for stocks no, no. If they dont handle the whining down of the Balance Sheets well, would that be the greatest threat to investors quantitative tightening, as the word tightening in it, obviously, the feds plan to be methodical but, i think clearly the goal is to take this fairly slow you can lay out a benign scenario, i am not suggesting that well get one and we have had the view that we are probably going to have some choppiness in the market we are assuming when they announce this start which will commence in october. If anybody is surprised by that, they have been living under a lovely rock without access to do ron, we had a conversation yesterday with another guest given where stock prices are and how far they have come this year but since 2009, investors ought to reset their expectations over the next four or five years. What they expect to get out of their stocks c so thats set in 2009 as well it absolutely was i remember jack have said many times since then whats your view on that people have gotten accustom to ser7 or 8 or 9 total returns. Are we in a 3 or 5 we have 10 this year if you want to look at it on a historic basis. It is about average and last year we had a slightly better year than that i dont love the market, i love individual stocks. Evaluations could be higher on a relative basis and we dont see that happening. You do need some sort of shock to offset the market here. I dont know what that is. I am kind of diagnostic when it comes to the overall market. All right, liz ann and ron. Thank you very much. Our facebook and google is becoming surveillance stage. Plus, how one Clothing Brand plans to survive amazon and really the entire retail wrecking ball. Well show you the dramatic victory to set a new baseball win streak, still ahead. Ies wont pay for damages. That is, not if they can help prevent damages from happening in the first place. At cognizant, were turning the industry known for processing claims into one focused on prevention with predictive analytics, helping them proactively protect the things that matter most. Get ready, because were helping leading companies see it and see it throughwith digital. Facebook and now google as well under fire advertising this time jul Julia Boorstin is joining us reporter the language is shocking these are categories that facebook offered to advertises and is now removing those. Facebook issuing a statement including the following quote, we prohibit advertisers from discriminating against people based on religion and other attributes we found a small percentage of people entered offensive responses. In violation of our policies, keeping our Community Safe and making sure our target is not using for discriminatory purposes we are remo. We are removing this feature google telling cnbc quote our goal is to prevent making offensive suggestions, we have language that informs advertisers when their ads are offensive. In this instance, ads did not run against the vast majority of the keywords but we did not catch all the offensive suggestions and thats not good enough and we are not making excuses. And well work harder to stop this from happening again. Now, neither stock is moving much on this news today. Facebook shares are about half a percent and google share is down about half a percent it is certainly controversial to watch. It is, julia. Thank you. Add targeting the most recent problem for facebook and Big Tech Company yesterday, Venture Capital told cnbc that as facebook and google growing more powerful, they are turning into spies and making themselves targets facebook and google are effectively Surveillance States. They have so much personal and private information about so many citizens in so many countries. It has to to deal the way the state starts to deal with it are coming out it turns right now that the eu comes to say, you cannot take your dollar. I believe it is germany or another one. You cannot just send it to ireland and pay basically no tax. It is beginning because it is partial and realizing there is too much power unbounded it is hard to argue about that after all, facebook has effectively no product are there Surveillance States that need to be regulated . They have power that no companies have before. They can recognize our photographs and gathering information of what clothes we wear and where we go and they are using that to market it to us the Tech Industry is getting a free ride like no other industries before. Imagine car makers did not have hey, this is your problem, drive safely, everything is okay thats what the Tech Industry is we dont understandwhats possible and they end up getting away with this who said the greatest cia agent in the world 30 years ago could not and if they spent their whole life working diligently could never learn half as much about what we now willingly put onto the internet and the social media and facebook platforms and yet, we have facial recognitions coming and driver less cars know everywhere we go is this going to be beginning of a multi year and multi decade battle for ourselourselves yeah, i have a book of the self driver cars when you have it at home, amazon, and now we have cameras and smart tvs are watching us. Guess what, they are watching everything we do and whats happening with the videos or whats happening if we are hacked everything we do now is being watched and recorded and being used right now, they want to make money from us. We thi now theyre making us do things that we would not otherwise do, it is scary as hell, my friend do you agree, is this a new surveillance state, would you be pushing for regulation of facebook well, the other thing that was kind of missed in the conversation is your cell phone as well. Your cell phone is technically the greatest surveillance device ever created by man because it goes with you. Facebook, a lot of people still use them, the phone makes it that much more of something thats going to do actual surveillance on your movement. The big thing when it comes to regulation on facebook, it is going to require people to demand some kind of change if you look back from american history, thats what led to busting up the trust or tr looking at big corporations and standard loans and so forth. Facebook is on a whole another level, until people realize and acknowledge how much information they are giving over and what it means, we may not see a change we are showing a full screen that says war ari of overregulation government based on political whims i did not hear you say smanythig like that, is that true and why . When you look at them, you have two people who are in charge both and who have a lot of money and have political influence. When you look at jeff bezos of amazon, hes in charge of the washington post. They can kind of crack down on this Different Companies on maybe they receive negative press and they dont like the way politicians are being covered. I think it is going to come from the people who are asking for the change you know, vivek, i have been one of the people at this desk thats naive under concern about these intrusions in privacy from alexa. I used the think alexa understood me but i dont think she gets me now the more i communicate with her whatever it is [ laughter ] is it true that most of the intelligence that these devices gather from us are used for purely profit making reasons in other words, it helps somebody making money, it does not necessary get used to spy on me as such brian, thats yes thats how it is being used today. All of this stuff is being storstor stored in the clouds alexa is going on sammamazon see some where it will be able to summarize who you are and how you think of your mental state. You have a fight with your spouse or yelling at cheildren and it will know all of that does it really pick up that. Does it pick up every conversation that i am having in my bedroom and in my kitchen or whatever they say it, but you trust these Tech Companies i dont. This camera over here could be on right now and it could be spying on me right now and my microphone could be on, i dont know it. The light is supposed to go on so uhuh dont know if you are being spied on or how it is being used do you trust this tech company so much . Quickly, we learn from we dont own ourselves. Do we take ourselves out and they can use them. Do we own our data well, no. Thats one of the things if you look at terms of vis, they basically have in there which is a long legal document that nobody ever reads and how much of the data that you provide to them, they kind of Share Ownership of actually, there is a second and i did want to go back to the fact that when we talk about the same issues prooeviouslypreviouy we ask the government to look at information to track terrorists and the bad people we want the government to do it. It is not just advertisers and marketers. This is information going to the government to monitor the bad people and how far does it extend out thats civil labibertarians always worry about it. Thanks guys, vivek and andrew. That was really good outlining the problem but you dont know what you do you are sacrificing for the convenience and the possibility that the information is going to some day, somehow be used not in the way that you wanted maybe not in the way you wanted i guess where he said, vivek says well, you dont know they are collecting and so so forth and whos watching and so forth. If thats true, why there has not been, why the egg has not broken why we dont know that we will we are at the beginning i feel the great discussion of the next decade are probably likely to be around personal data and personal information uhhuh. And theyre right if you say hey siri, your phone turns on it is listening. Heavy topics today on power lunch. Coming up next, we discuss the markets because they are hitting a new all times high today dont move ac ly like ou do. Even love it. And today, you can do things you never could before. Youre 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. And using blockchain to help prevent fraud. Expestandard. E lexus rx with advance safety. Lease the 2017 rx 350 for 399 a month for 36 months. Experience amazing at your lexus dealer. Sometimes they just drop in. Always obvious. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Hello everyone, i am sue herrera. Our selfesteem of chaff general mark milley is meeting with shinzo abe the meeting comes after north koreas second Missile Launch over japan north koreas provocation Missile Launch is unacceptable the president of the United States have repeatedly said in the policy of the United States, repeatedly maintaining we are not going to allow them to develop the type of weapon theyre trying to develop. Here at home, several water crafts were damaged and people were injured following a micro burst near the utah border the sudden power downward of winds measuring 56 Miles Per Hour the International Day of peace will be observed around the world on september 21st. Ahead of that observance, the u. N. General and the president of the general bassembly took part at u. N. Headquarter this morning. Thats the news this morning, michelle, i will send it back to you. I will take it awe three are hitting a record high today the dow is on track. S p 500 is on pace for the best week since april and nasdaq is higher by 13 and boeing and apple and 3 m is pushing the dow higher and the wild run for bit coin, on again today and up 13 yesterday. But, even with that gain, it is still down 18 for the week. Was the stock markets too quick to ride off retail well take a look at the longterm trend with the father and son team ahead of perry ellis. If you want to be the first on your block to get your new iphone, you better get your order in today well at the you why on power lunch. You can place your order for the iphone 8 today you may be able to get your happene hands on it as soon as friday. Josh is with us right now one person we know are really excited, lebron james responded to the preorder of enthusiastic emojis that you see there. New features and new glass and aluminum design and the fast bott processer and that was a key feature and prelaunch surveys that a lot of potential iphone customers are looking for. The 8 starts at 699 the tech Analysis Firm he thinks the 8 is going to be the best seller for apple over the next few quarters more than iphone 10 is the mainstream iphone he says that promising new features and capabilities but familiar technologies like touch id guys, back to you. Thank you very much josh thank you, while we wait for the early results on those new iphone orders. It is not a pretty makiewipictun it comes to retail sales yournext two guests ron perry ellis international, miami based retailer celebrating 50 years in business. Oscar price is the companys ceo, hes joined by his father congratulations gentlemen on your 50th anniversary on ringing the closing bell first, lets start since you are based in mumiami how did your company and employees get through the storms well, we made it through and we got very lucky that Hurricane Irma was really a one and we had a lot of debris but luckily all of our associates were able to get home early to prepare and theyre all doing well and most of them are back at work already. We weathered a lot of storms, this is no the only storms that we had issues with we had experience with hurricane andrew and irma. We are back to normal. You know george, your company is known for its brand name, perry ellis, it is much more than that i would like you to educate our viewers, tell us about the scale of your business and how it is doing. Our business is doing well, thank god to our associates. Sales in the area are 150 million around the year this does not include about the 600 million on coming from different of the United States of the world the 850 would translate which is on translating into a billion and a half and roughly the other royalties and licenses generated about a billion. All and all, it is about 3 billion company oscar i have been familiar with the perry ellis story, mr. Ellis died about 37 something years ago, you continue to carry his name as the flag ship of the company. Why is that . Does the perry ellis name and brand still have that kind of power even so many years later well, we have done we did the trademark in 1999 and we did the operating business in 2005 we always kept with the dna of the brand and making sure that we have our Fashion Shows and respect it as a designer brand and we continue to do that today and it is a name sake of the company when we went public in 1993 the name was Supreme International and 1999 when we acquired the trademark, we felt that perry ellis is better known than Supreme Internationals so that was the justification of changing the corporates name. We kept the tradition. George, you left cuba in 1961 many members of my family did, too. Could you have built this company like any country in the world . I dont think so. It is an exceptional situation for everybody, we are looking to live here. I travel the whole world and nowhere in the world would i have the opportunity that i have had in the United States and i thank the americans and the United States that have allowed me to do this. I am proud that we have employed over 2,000 people today. Gentlemen, congratulations on your 50th anniversary. Oscar and george come back for the 100th, if not sooner laugh hal [ laughter ] okay, thank you coming up, not giving what they want from sports. Come up, we ask, do espn viewers, simply want a little less conversation and a little more action baby that was terrible. Speaking of action, the Cleveland Indians celebrating another victory and a new record well show you the amazing way they did it. Cnbc trend factor live data board is brought to you by cme group. The worldcoms to grip. Elton, what are you up to . Im having breakfast in uganda. Uganda be kidding me, elton its a. Its a joke. James, were going to look for gorillas hang on, what . Thats a real silverback gorilla. Look at it no, dont look at it. Shhhhh stay. Okay. Im freaking out sapphire reserve, from chase. Make more of whats yours. So let me get this straight. Youre a rabbit . Im vern, the orange money retirement rabbit, from voya. Riiight. And that means. . Im the money you save for retirement. I help you get organized so your money could multiply. See . Got it. Whos he . Hes green money for spending today. You know, paying bills, maybe a little online shopping. Makes it easy to tell you apart. That, and i am better looking. I heard that. When its time to get organized for retirement, its time to get voya. It is a walk off for number 22 wow, was it an exciting game if you watched it, you saw one o f the best games for the year. The indians keeping their win streak again, they tied the game with two outs and two strikes in the 9th inning that guy hit a double in the wall the guy that got the winning hit is jay bruce who appeared on this show on august 31th the indians have not lost since. We talk to the teams gm last year well see if this weekend if the crowd will be better and bigger as they go for 23. They now own really to me the Major League Record for the most wins the cubs had a tie. Some people say that game was won by ramirez hustling that long single. He turned it into a double. All right, lets turn to baseball from to the nfl according to a new report. Nfl viewing is down 14 from a year ago, it is not just the games seeing a drop. Viewer ship for sports commentary down to 13 more than a year ago and more than 30 of its peek from a couple of years ago. This week, cbs les moonves had this to say quote, i am turning on espn a lot and seeing people shouting at each other everybody is going towards the common model fox and sports and espn and some other channels and people debating on this if thats hurting, whos picking up the audience, if anyone the really important overall sports programming space because it is relative lilo cost and relatively high margin programming, it is something that gotten lost to a lot of the, you know, concerns around sports and sports right cost and other issues the reality is that if people use to watch sports center, forget about the points of view that maybe argued one way or another. They want to watch scores and see highlights it is not necessary. There is other way to do it now. Thats an important element of the drag to see. Now, it is true that fox sports is equivalent program is growing but from a small base. The problem is the genre commentary is falling off. What are they tuning into or are they tuning out . I think they are tuning out we dont have a unify data set to be able to say that people are replacing watching youtube clips or going to espn. Com to see scores or highlights rather than seeing it on the traditional tv set and it is also true that they are watching games a little bit less the first weekend of the nfl was down, it maybe because there was so much hurricane covers and people watching that and they were knocked out it seems to me, my guess and my hypothesis is, particularly with football and the nfl, they have over saturated it. I think thats certainly. Last fall everyone was asking where are the viewers gone too many observers pointed out that it was the election that may have had some impact in some ways, the other factors including yes, there was kaepernick issue and there was also concerns around head injuries and relative favorably of sports and all sports suffering to some degree baseball is holding up okay. But, i think it is to say that whatever trend we saw last year could very well continue this year and do you think it had to do with anything of jamelle hills tweet that was skeptical of the president. I think there are people who dont want to see opinions but i think we have seen most programming and you go back to the news genre programming that the fact that msnbc is doing gang busters and fox is doing well and cnn and for better or worse, opinions seemed to sell and thats not necessarily a bad thing. Her opinions were expressing a private twitter feed and not on the area. Right to the extent that it is being attacked to the network and criticisms that was put forward towards espn and again, referencing that it was more expressed on espn. Again, i think that drives engagement with the network than anything else. Brian, we always appreciate your opinion the nfl game last night was unwatchable football it was a bad match up i watched it anyway i wonder if it out drew the indians game on the mlb network, it was very game on the mlb net which was very watchable. Id like to see the breakdown in ohio. This may be the easiest mystery chart ever its friday, why not a good chance you own this stock somehow and are familiar with its struggles. Can this dog of thdow rn ie tut around well hit it in trading nation. baby crying slow jazz music fly me to the moon and let me play bell ring at ally, were doing Digital Financial services right. But if thats not enough, we have 7500 allys looking out for one thing, you. Call in the next ten minutes to save on. And if thats not enough, well look after your every dollar. Put down the phone. And if thats not enough, well look after your every cent. Grab your wallet. Access denied. And if thats still not enough to help you save. Ooo i need these well just bring out the snowplow. You dont need those well do anything, seriously anything, to help our customers. Thanks. Ally. Do it right. Hey youve gotta see this. Cno. N. Alright, see you down there. Mmm, fine. Okay, what do we got . Okay, watch this. Do the thing we talked about. What do we say . Its going to be great. Watch. Remember what we were just saying . Go irish see that . Yes im gonna just go back to doing what i was doing. Find your awesome with the xfinity x1 voice remote. . You invest in the Dow Jones Industrial average, congrats, your money is at another record high today lets take a look at this. The worst performing stock in the dow, ge. Eddie with adviser shares, jina sanchez. Jina, i think how well the dow could have done if ge had participated alas, it has not but do you expect that the bottom is in for ge . Will it really turn itself around well, i think in it was going to turn itself around, we would have seen more evidence of it right now, if you look at where ge participates, it participates in oil and gas it participates in Power Generation and airlines. Oil and gas has largely turned around for the rest for the are rest of the market, so, you know, why didnt we see more participation in fwrge thats actually one of the notes jp morgan cites with their bearish outlook. I think theres a little more to go you could see a kich l sink quarter next quarter as the new ceo comes in, takes a moment to reset ge and expectations. Eddie, what do you think . Lot of longtime ge employees, longtime cnbc employees, vested interest of this stock turning around will it . I think it can. Theres a chance they can. To reiterate what gina said, theres a new ceo and the stock is down. That gives him an opportunity to make some changes. Theres a lot of cutting they can do particularly in hq. Another thing i like about it is the dividend yield its over 4 now thats twice the tenyear treasury so i think theres more room to go, if it drops below 22, i think youre looking at a good buy, particularly if it goes below 20 then i think ges worth buying. It was a 23. 80 stock in march of to 13, 23. 80 stock today. Incredible all right, jina, eddie, thank you. For more, go to tradingnation. Cnbc. Com check please is next. Now the latest from tradingnatio tradingnatio tradingnatio tradingnation. Cn tradingnation. Cnbc. Com. Help lock in profits by raising your stock order as your stock moves higher, risk reward ratio may fall out of balance so consider raising your exit point to under significt ppt veansuorlel allowing you to ride the trend as long as possible. It can detect a threat using ai, and respond 60 times faster. It lets you know where your data lives, down to the very server. It keeps your insights from prying eyes, so theyre used by no one else but you. It is. The cloud. The ibm cloud. The cloud thats built for your business. Designed for your data. Secure to the core. The ibm cloud is the cloud for enterprise. Yours. People dont invest in stocks and bonds. They dont invest in alternatives or municipal strategies. What people really invest in is what they hope to get out of life. But helping them get there means you cant approach investing from just one point of view. Because its only when you collaborate and crosspollinate many points of view that Something Wonderful can happen. Those people might just get what they want out of life. Or they could get even more. One of the stories that we are still talking about is jamel hid, the espn anchor who tweeted some things that were very unfavorable about President Trump. Other espn personalities have been let go for tweets, or statements Curt Schilling that were recorded as intolerant or inappropriate i think you have to realize whenever you speak publicly on, and twitter is a public forum, that those words stick to you and when you think its private view or not, they reflect on the company. If i were her boss, i would at least suspend her. A lot of people will put up in their twitter description, these are my views, not that of my company, but when youre a public figure like that, you own those and at least in our contracts we can be fired. This all goes together embarrass the employer. There is no privacy these days it goes to our facebook discussion, you tweet, you are, if i tweet not cnbc, yeah, it is thats who i work for. Yeah. Thats why people follow me Brian Sullivan dude, nobody would follow me. Made the point, look, theres so much msnbc lives off criticizing the president. Thats working for them. Maybe it isnt such a bad thing. Wow. Sports and news are two Different Things and sports, i mean, gary, you shouldnt have an opinion, either, but its a whole new age. Sports. By the way, got the ratings, this is for ohio, thanks, guys, our crew is best got it quick 20. 4 household rating not the nfl game, the indians, 20. 4 household rating in ohio that is a giant number. Thats a big number a president ial debate wouldnt get that number highest ratings ever for a baseball game in ohio. Observe it. Have a great weekend, everybody. Closing bell starts right now. And welcome to the closing bell im sarah eisen in today for kelly evans at the new york stock exchange. Welcome back, tgif. Im bill griffeth. Facebook and google have come under fire under antisemitic ad targeting. Will these growing ad columns but a wrench in the socalled faang trade of tech . And in social media stocks overall . A debate on that coming numbe i little bit. Thoed is today is the day y preorder