What a deal could mean for the other chip stocks. Power lunch starts right now im Brian Sullivan the markets moving just enough today to give your investment dollars yet another new high, thanks to the saudi news oil is moving up again data is pushing Energy Stocks higher chevron and exxon among the dow leaders. We talked about Semiconductor Companies as well. It is fair to say that lately, it rocks sox at new alltime highs. Michael kors soaring, the fashion retailer beating earnings estimates and raising its outlook. More on that ahead and reports the Pharmaceutical Company may becoming a takeover target thank you very much im tyler mathieson. Welcome to power lunch. Target gearing up for the holiday season, announcing deeper black friday discounts and plans to open 6 00 p. M. To midnight on thanksgiving day i will be asleep staying with retail, amazon cutting prices of Third Party Products in the face of stiffer competition. And the new york fed present William Dudley plans to retire midnext year, well before his term ends. We start with a massive shakeup in saudi arabia over the weekend. Dozens of royals arrested late saturday night in whats being called an anticorruption crackdown. Many believe it is an attempt by the new crown prince to consolidate his power, remove potential rivals to his fathers throne and perhaps improve his ability to push through Major Economic reforms one of those arrested, principles al waleed whose Kingdom Holdings owns big stakes in twitter and got hit hard today on the Saudi Stock Exchange startling chain of events doesnt end with the arrest. Another senior prince died in a Helicopter Crash over the weekend. The interior ministry gave no reason for the crash the Prime Minister of lebanon unexpectedly resigned while he was visiting saudi arabia. Lets get more insight into what the saudi purge means. Michael ruben, middle east scholar with the American Enterprise institute, good to have you here. Thanks for having me. Whats going on in saudi arabia basically, the answer is all of the above when it comes to is this about consolidating power, is this about fighting corruption look, when you do business in saudi arabia, its all about who you know there are 15,000 princes in saudi arabia and so what the crown prince is doing is basically saying all real decisions need to come through me at the same time hes ambitious, he wants to reform the economy to modernize it, and he doesnt want to have to deal with resistance the problem is, what happens if he fails then you could see a regression in saudi arabia that leaves it far worse than where it is right now. They are trying to take the oil company of saudi arabia public we have had guests on who said they think that will be impossible, that the Balance Sheet of the country and the company are completely intertwined and the vested interests are so hard to overcome that they will never list in a real place like london or new york, but places with weaker listing standards is this part of that is he trying to achieve Something Real can we put those two things together well, i think he may be but heres the thing when you look at saudi arabia, its much easier to find out who is socializing with who, who is going to what party. The deepest, darkest secret in saudi arabia is actually involved with the oil reserves, how much each field has, so im not sure whether you are going to have it listed in a way that will make it responsible with the transparency that would be expected of every other company. That said, what the prince is trying to do is not simply bolster oil. Ultimately thats what got saudi arabia in this problem in the first place. But to diversify the former oil minister of saudi arabia famously said look, the stone age didnt end for a lack of stones. The oil age isnt going to end for lack of oil. What saudi arabia is trying to do is build up its agriculture, build up its tech, build up its chemicals then why put the biggest investor in saudi Arabia Al Waleed is low on the totem pole hes known for technology and financial investing. If you put him in jail, what or in detainment, what are you saying to potential outside investors about the safety and stability of a nonoil saudi arabia this can cut both ways, actually on one hand, look, its selective justice. Everyone in saudi arabia is just as corrupt although it depends on how you define corruption you dont have the whole conflict of interest regulations and laws like we do in the United States. Whats being said by Mohammed Bin Salman is no more dealing with these other princely power centers. You have to come to me the question is whether that works or not if it does work, if people know whose door to knock on, that gives a little more certainty. But you are absolutely right it doesnt signal a 21st century modern economy hes made a lot of enemies by doing what hes doing, right absolutely. This is the danger you look at whats going on with yemen, yemen has become a huge financial drain on saudi arabia at a time when saudi arabia cant afford it because the price of oil has declined. So the question is whether hes just trying to shut up dissent at a time when hes gone so far out on the limb that saudi arabias about to plunge over. Hes edged out a couple of other crown princes to get where he is. Does he have, i cant imagine he has their support, but does he have the support of the security forces, the National Guard well, this is what we are going to see certainly i dont think he would make this move if he didnt have the support. Against the backdrop to this is of course all the rumors the saudi king, his father, is actually ailing has a bit of senility so this might be why these moves are being made now rather than later. What would backlash mean in the long term . Would that mean his agenda gets thrown away . Does it mean the aramco ipos if jeopardy what does that mean, exactly you look at everything which the crown prince is trying to do in terms of liberalizing the economy, in terms of bringing women into the work force by allowing them to drive and so forth, in terms of oriented much more towards the west. If you have the backlash, if muhammed bin salman falls like so many crown princes have fallen, ultimately you will plunge into a much more sectarian saudi arabia that wants to fund extremism, that might be much more hard line against the west, much more distrustful of the west, much less a willing partner thats the danger. Any reason to be suspicious about this Helicopter Crash . Ultimately, the fact that it occurred so close to yemen brings a great deal of suspicion, and the backdrop to all this of course as we enter the saudi perfect sand storm, so to speak, is that you had a Ballistic Missile that was intercepted over the saudi capital. That suggests that the yemen war and accusations of iranian involvement are becoming much more serious if houthis were responsible for downing this helicopter instead of mechanical failure, thats a big deal it went down in the province right next to yemen. We have been showing secretary of state Rex Tillerson meeting with the crown prince. What do you think the u. S. Administration is thinking about all this well, ultimately the United States just wants to see the crown prince succeed but theres always a danger in consolidating policy into one single individual, because when that individuals gone, chaos can reign supreme. We are at a very dangerous time in saudi arabia. Certainly looks like it thank you so much, michael good to have you on. Thank you two years ago the world was rocked by the release of the socalled Panama Papers. More than 11 million sensitive financial documents stolen from a secretive panama law firm. Now hackers are at it again, this time targeting bermuda. Eamon javers dives into the paradise paper hardly paradise for those folks named in them. The opposite for a lot of these folks. Another astonishing leak of offshore documents, in this case seven million documents, as many as seven million documents from a law firm which has offices in bermuda. They were sent to a german newspaper and shared with the International Consortium of investigative journalists which spent months looking into these documents and sharing them with reporters around the world gives you rare insight into the Global Offshore financial world. Those are secrets you dont often get to see about 120 politicians and royal family members of countries around the world have been named in the documents so far. One of the people that u. S. Media have focused on is wilbur ross, secretary of commerce. Ross shares business interests with Vladimir Putins immediate family ross failed to clearly disclose those interests when being confirmed earlier this year and retains an interest in this shipping Company CalledNavigator Holdings its Navigator Holdings that has a business relationship with a Russian Energy firm controlled by Vladimir Putins soninlaw all of that, new reporting over the weekend. Today on cnbc in london, wilbur ross responded to all this saying ultimately hes done nothing wrong. Heres what he said. Theres nothing wrong with it at all i think its just an example of the press trying to find anything they can, however remote or silly, to attack the president and somehow link him to russia. This is nonsense its not clear who ultimately stole these documents from the law firm in bermuda. Its not clear why they did that or exactly when that hack necessarily happened the law firm at the center of all this, appelby, says it has been the victim of an illegal computer hack but again, we dont know who did this or what their objective ultimately was think its safe to say it is linked to or related to the hackers with the Panama Papers it seems like its the same newspaper in germany, correct kind of a midlevel paper in germany. Very similar m. O. But you could see somebody piggybacking off the Panama Papers to do this themselves, then just follow the playbook not necessarily guaranteed its the same people. The big difference here is with the Panama Papers, we didnt see a lot of american names. In this case, we are seeing a lot of american names drawn into the story. Could it be two different entities doing this for two Different Reasons politically . Not clear. We have to find out. To make sure i understand the relationship wilbur ross has, he has a stake in this company navigator, and one of the clients of navigator happens to be a Russian Shipping Company . Is that correct . Right of which a share is owned by the soninlaw of Vladimir Putin this is a company that does business with a Russian Energy firm and as you saw on the tape, wilbur ross says he did nothing wrong. This is a normal commercial relationship according to the secretary of commerce. Thank you, eamon. President trump continuing his jaunt through asia today, starting in japan, now heading to south korea what is he hoping to accomplish . And why michael kors is soaring while a lot of retail is struggling so what else is new . Hows your mother . Umm. Shes doing good. She needs more care though. She wants to stay in her house. I dont know even where to start with that. First, lets take a look at your Financial Plan and see what we can do. Ok, so weve got. Well listen. Well talk. Well plan. Baird. President trump continuing his asia trip with a visit to south korea. Kay Kayla Tausche is live in seoul its a 24hour operation here the president set the arrive in just a few hours seoul is the third stop of his five country, 12 day tour which the white house is quick to point out is the longest president ial trip since george h. W. Bush in 1991. President trump has noticeably dialed down his colorful approach to north korea, warning against dictators broadly but making no mentions of rocketman or fire and fury or locked and loaded, as he previously referred to kim jonguns regime japans Prime Minister announcing not only new sanctions for north korea, but today also military enhancements with the United States the Prime Minister of japan is going to be purchasing massive amounts of military equipment, as he should, and we make the best military equipment by far he will be purchasing it from the United States. Where hes become more measured on National Security, hes become much more vocal on trade, criticizing longtime ally japan for trade that he says is neither fair nor free nor reciprocal, and taking aim at a 70 billion deficit where theres no deal to go back and revise, they are starting from scratch on talks there that could portend trouble for south korea, where a much smaller deficit was the catalyst for renegotiating the just fiveyearold korea free trade agreement. August and october rounds to renegotiate that were slow going. Theres not much to say about what got decided there and the public here in seoul will get to attend a hearing on friday on how they think this deal should be revised clearly it is top of mind for every day citizens in south korea. Trump and south koreas president moon tomorrow will hold a bilateral meeting they will also have a presentation at the National Assembly where President Trump will make a speech experts say hes starting on friendlier territory in allies before going to tougher negotiations in china and the philippines later on during this trip thanks, kayla will there be any significant policy announcements during the trip . Lets bring in the managing partner at bridge park advisoras former undersecretary of commerce for International Trade and dean change, Senior Research fellow at the Heritage Foundation let me begin since you are sitting in the studio with us, what do you think the major outcome of this trip will be look, this is a very important trip for the president. This is his first trip to asia and it is where a large portion of the u. S. Trade deficit resides which hes been so active in talking about, and its going to have two components there will be a strategic and National Security component, primarily focused on north korea and to a lesser degree, the south china seas, and there will be an economic and commercial component. And that component is going to be primarily focused on trade. My fear would be if the president and the administration continues to focus on the trade deficit, not much will come from it why do you say that why is that the wrong thing to focus on because we have real issues with china and other countries Market AccessMarket Access, for example, rules of the road, for example, but none of those are fundamentally going to address the trade deficit which is fundamentally caused by the savings glut that exists in these countries as opposed to the terms of trade so focus on the terms of trade, work with u. S. Companies to have more and better access to those markets is the way to go dean, your reaction i would tend to agree with stefans observations. I think that it is going to be very Strategic Focus north korea has been making very dangerous threats against guam, against hawaii, and on the trade aspect, really it is in particular with china, i would add the issue of intellectual Property Rights protection i think the president going over there as the i. P. Probe is still under way means that he does have a potential cudgel up his sleeves. Dean, im sure General Dynamics and Northrop Grumman are happy. Should we be worried that japan for the first time in 60 years is effectively rearming . Japan has been pushed by the United States to rearm since the cold war president reagan and the Prime Minister built a very strong relationship on the idea that japan would expand its capabilities so long as the u. S. Japan Alliance is strong, i think fears of growing Japanese Military capability are more than overblown back to china and the trade point, the timing of this is very interesting from the chinese perspective. Xi jinping just came off the Peoples Congress where his strength was reaffirmed. How does he enter those talks when the u. S. Wants to get fair ground for its companies its very interesting one of the things i think we have a misconception about is how all powerful the president of china is. I had made five separate trips to china as undersecretary of commerce, worked very closely with the vice premier who had respons