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tv   Squawk Alley  CNBC  January 6, 2016 11:00am-12:01pm EST

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♪ >> ceos of. >> down about a percent following the news of north korea has claimed it has successfully detonated a hydrogen bomb. the chinese yuan hit record lows today, and bob has -- >> we're off the lows, but go
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into the close here. the action really occurred overnight. 9:00 we got word about nuclear tests by the north koreans, and we also got word that china said its currency fix lower. i think that was a major factor. >> modest expansion and new lows. almost 200 at the nyse. haven't seen that in a while. the autonation ceo talking about the dealership. that's a new low for autonation. the carmakers are being affected by that announcement as well. what's holding up?
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this is looking a like 2015. those old consumer names that did so well, the rentals and the conagras and the tysons and dr. pepper, they're the ones, again, fractionally on the positive side. gold subpoena, and i do want to point out that while the spider gold trust is on a five-year decline, the volume is fairly heavy today. much heavier than normal. twice the normal volume. even though it may not be moving that much, guys, the volume interest is very high. >> all right, bob. thank you very much. bob pasani on the floor. more on north korea this morning. let's go to chief pentagon correspondent jim mick mick. there's still an awful lot of skepticism here at the pentagon and throughout the u.s. government that this was an actual hydrogen bomb test.
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in oning part because it was 5.1 on the richter scale which matched the atomic bomb tests of the previous tests since 1996. price sily in terms of the size of the weapon. and it's exponentially more difficult to create a hydrogen bomb. not that it couldn't be done and not that north korea is pursuing a hydrogen bomb and if it were the case, this would be a huge game changer. a hydrogen bomb is about 1,000 times more powerful than the equivalent of an atomic bomb. it takes a small atomic bomb, very small, and plant it in the hydrogen bomb to actually ignite that thermonuclear device. now, the u.s. military had sniper planes, rc-135s, in the air gathering air samples about the time the test occurred, and we're even told they had people on the roof of the embassy in seoul collecting air samples just in case the wind should
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take any kind of chemical that is may have been thrown in the air. that's probably the only way they would actually be able to confirm that the north koreans conducted a hydrogen bomb test. it could be more compact and create more damage than an atomic bomb of its size, which means that it would more easily fit on to a ballistic missile warhead which would mean long range capabilities if, in fact, they did have a hydrogen bomb test. again, a lot of skepticism and we won't know probably for weeks if, in fact, they did this. carl. >> i'll take it from there. here is ban ki moon's reaction just a few moments ago.
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>> destabilizing for regional security and seriously undermines the international nonproliferation efforts. i condemn it unequivocally. >> joining us now on the cnbc newsline is the former bureau chief of the associated press in pyongyang, jean lee, now teaching university in seoul, south korea. we appreciate you coming to the phone this morning. we just heard the secretary general of the u.n. denounce this as profoundly destabilizing, but north korea has run nuclear tests three times since the beginning of this century. what's different about now versus then? >> i think the big difference is they're claiming to have tested a hydrogen bomb, as we heard earlier. this is a huge step up. they've had success over the past several years, and because their program is so under cover we have really no idea what's
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happening. it's really only when they test a nuclear device that we have a sense for how far along they are. from my impression from having followed this issue for the past three tests, it's a huge jump, a huge leap. i think in terms of the destabilization in the region, you're talking about a country that clearly does not care what china has to say about this or anyone else for that matter and doesn't appear to be under international obligations. the u.n. resolution banned it from dissolving its nuclear program. who can the world turn to? >> go ahead, swreen. >> it's just going to point out that one of the things in terms of, you know, extremely powerful
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deveess and north korea has not allowed in the international inspectors -- nuclear inspectors for years they're doing this without any security, and that's terrifying for the region as well, and you have ban ki moon holding out the proliferation -- the threat of proliferation, the possibility that north korea may be selling technology to other rogue nations. >> you mentioned this collection and this research. we know -- we just heard from jim mikliaciewski, that there are seismologists on the ground trying to measure this. do you think it is possible to confirm one way or another what exactly this test was? >> it's very tricky. there's a very small window and obviously it is fairly iffy right now in korea.
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you don't know if they're going to be able to capture that enough to confirm it. they have not been able to confirm whether it was highly enriched uranium or not. there's a very small window and that can take a long time, and as i mentioned, people cannot get on the ground experienced inspectors cannot get on the ground. they're doing this at quite a distance. it is possible we may not know conclusively if it was a hydrogen bomb. what we do know is they're headed in that direction. whether or not it was a successful hydrogen bomb test, we may not know, but we know that that's what they're working on now. >> jean, a lot of the color that has been reported here stateside from inside the country or nearby is that this is, as you might expect, a show of strength, a lot of support from the rank-and-file of north korea. is that what you have heard? >> well, you know, that's the thing -- that's the perspective
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that, where yes, on the ground, there's a huge domestic reason for why they are doing this. something like this certainly brings the people together. it's a sense of pride. they're extremely proud, and they don't have a lot to be proud of, and this nuclear program is a huge source of pride. people -- this is something that is a regime. there are other tough times which they can point to as a positive thing. something that makes them strong and makes the world stand at attention, frankly, which is what's happening right now. it is unsettling to say the least, and we appreciate you coming this morning. jean lee, the former ap bureau chief in pyongyang. >> when we come back, we'll keep an eye on that and the selloff today. also, a rare and exclusive interview. the ceo of sony will join our john fort at ces. am is cutting production of the iphone. the stocks now at about $1 had been a share, and you are looking at
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the rift finally on sale today. the price tag? $599. a lot of people are having trouble accessing the site and placing orders. we'll see what progress they're making when "squawk alley" conditions in a couple of minutes. sure, tv has evolved over the years.
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even curvier. but what's next? for all binge watchers. movie geeks. sports freaks. x1 from xfinity will change the way you experience tv. welcome back to "squawk
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alley." i'm john fort here with sony ceo mr. hirai. you had a keynote last night. lots of news out of that. >> yep. >> want to start out, though, it's a big newsy morning, talking about geopolitics, a lot of the concerns are out of asia, whether it's north korea, whether it's china's economic slowdown. how does that affect -- how do you expect to sell these products through 2016? >> i think the most important thing for us at sony is really to focus on, you know, the things that we role. that is making sure that we just have great products. whether it's in electronics segment and video games. we're essential great content in terms of entertainment properties. and to make sure they're products that appeal to the customer. you know, from a standpoint, there's some volatility that we're talking about. i just think we just need to take a step by step. it's been three days i think now in the markets. we still have a long ways to go
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here. >> quite a three days. let's get to the tvs to started. always big, literally, here at ces. you came in as sony's ceo, turning around the tv business was -- money-losing tv business was a big part of your mandate. how is that going? i mean, you've got it separated off a bit. people are buying more ktv's, and you announced innovations here. has that business really found its legs? >> i think that the business is certainly heading in the right direction. we were profitable last fiscal year, and we aim to keep it in profitability situation for this fiscal year as well. it's fueled by great products in 4k. larger screen, premium segment tvs, by android, and a lot of customers are now coming into retailers around the world asking for 4k and in many instances asking for sony 4k tvs, and i think it's turned a corner, and now we're in a phase where we're going to be talking more about the great products that we can bring to market as opposed to whether business can
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be profitable or not because it is profitable. >> you haven't managed to make a lot of headway approximate in smart phones themselves, but apple, samsung, others absolutely use sony's imageing chips, image sensors for the cameras in their smartphones. you guys have pretty much cornered the market as far as that goes? how do you manage to do that, and do you feel like your position is secure? >> we look at the technology we have in image sensor that is we deploy today as well as the road map that we see for the next three to five years, and i think that the leadership position that we have both in terms of technology as well as the relationship that is we have with all of our customers is something that is something that is going to be a driver for growth for sony for a very good period of time, and i think that, you know, we do have the cutting edge technology in terms of being a manufacturer that does image sensors and also does camcorders, visual products, and of course, smartphones as well.
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we really understand what the consumer requirements are as well as the manufacturer requirements are, and we just have been hfd the curve. >> i think one of the most important drivers especially for sony, and it is called playstation vr is the gaming content. there we have over 200 developers that have signed up for the program. i think about 100 titles are in development actively as we speak. there's a lot of support for vr based content from the content community. we want to really extent what we've got over the course of the
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past 20 years with the playstation format now into a vr format where, you know, it's more immersive gaming. i think there's a demand we can create with playstation vr this year. >> go pro has stumbled, right? nobody, including sony, have managed make much inroads in action cameras against them. do you think you have an opportunity here to take some share in action cameras? >> i think that, first of all, we have the leading technology in terms of the pure imageing side of our action cameras. just as importantly, i think there's a creativity we need to come up with in terms of different accessories to meet different customer demands in markets around the world, and i think it's that creativity that is going to either make or, you know, cause some challenges for that business. >> sony ceo, thanks so much for joining us here from ces. lots of ground ahead to potentially take kayla and, of course, i'm continuing my trek
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here at ces interviewing the ceos. qualcomm's ceo coming up next, guys. back to you. >> we'll see you, john, in just a few moments with that interview. john fort and the ceo of sony from ces. coming up, more on apple stock woes and the status of facebook occulus preorders. markets closing in europe in less than 15 minutes. we'll have the market action on a big day for the markets. a volatile day with a lot of geopolitical issues. you won't want to miss the european close. squawk alley will be right back.
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zimplt welcome back. contributor john steinberg, formerly ceo of the daily mail north america. happy new year. >> happy new year. >> you have some big ideas when it comes to apple. we should mention is holding up today. >> absolutely. if you look at the other line of revenue, you're looking at $3 billion. up 60% for 2015. their year ended earlier because of the holiday. that's a massive amount of revenue.
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it's a massive amount of growth. the stock trades incredibly cheap. right now people are saying they're over. they're out of ideas. what company is $3 billion in revenue 50% that's out of wrdz? you know, i said on the show someone will call for it to be broken up, and i think it's a stretch. they're not being properly valued right now. we've got a lot of single companies that are multi-billion dollars. that's their whole company. they get traded at better pe multiples than these guys do. >> jim cramer has said if you are trading apple right now you do not believe that they'll be able to have a solid revenue stream going forward. iphone cycles being what they will. do you agree? >> let's have a list of possible things they could go into. some far fetched. some maybe not so far fetched. cars, vr. they're always late to things like phones and they're always better at it than everybody else. how about appliances and media. they could launch netflix. how about banking? health and medical. these guys are going to figure something out, and the stock trades cheap enough right now that you are not in over your head in terms of valuation like you are with a netflix or stock
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like that. i think you have to be out of your mind to bet against apple. >> for those that say they should have bought x and y, that would have been out of character tore them anyway? >> it's a different administration now, and they have shown themselves to act very differently than they did under steve jobs. the verge called this past year a beta year for apple where they released products like the ipad pro, that they wouldn't have done before. i think it's not out of the question that tim cook could do both acquisition and also he has more to the stockholders like the stock buyback. it's not out of the question either, i think. >> i situation where you have the report on the back of multiple analysts reports talking about potentially 30% correction in the supply chain. is now a time to sell even temporarily in your opinion if you think it's an opportunity to buy? >> i don't know how you sell a stock that trades at a forward pe ratio of 9.5, right, according to my y charts data that's going to grow revenue $10 billion for the next year. next two years without any of
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these big ideas that we laid out there. you know, i understand we've never seen a company this big before, and that does bring in a lot of growth questions, but this company has reinvented itself. i watched the cnn documentary about steve jobs this past week, right? a company from the verge of bankruptcy to the most valuable company on earth seems a bit dicey to bet against them. >> as we were talking, john is trying too preorder facebook's occulus virtual reality glasses. it's been hard to get through. where do you stand at this moment? >> where i stand right now is originally when you went through you clicked the preorder button and you got a white page. then i was able to get the $599 order price. it's amaze, by the way. >> this is tape of the actual event. >> i clicked the preorder button, and i get a white page. now i was able to try to put my credit card in, and i was able to use pay pal as well. if anyone thinks i have bad credit and that's why i wasn't able to get through, it wasn't just my credit card. then it fails out. i've got numerous $1 notifications on my credit card
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right now. keith terri was up there. he had the same experience. now you're stalled out with credit cards and a lot of people on twitter right now saying that they can't get through that credit card step. two possibilities. either it's so overwhelmed there are all these people trying to occulus rift. i don't believe that. i think facebook hasn't sold a product before. i'm not saying orders are light, but they're probably not that high, and these guys weren't prepared. it kind of blows my mind that these people can be unprepared for this. when i talk to our producers about doing this segment, i said, you know, maybe i won't get through, and then the story will just be that i couldn't get through. like it was a -- why don't they just have amazon do this for them? i mean, facebook doesn't have that hostile of a relationship with amazon. >> mark zuckerberg has just posted on facebook saying after years of development it's now available. when you put it on, he says, you'll feel like you instantly teleported into adventures like deep sea diving, piloting a star fighter or playing in a band on stage. fair assessment? >> so i have not used this
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particular one. i have only used the samsung one before, but everyone i have spoken to before says it's earth shattering. you'll need an expensive xoort. very few people have pc's. the $599 price is amazing. i said to cnbc i would buy it. if it's 2,000, i don't want to buy it. >> they said facebook would lose about $100 per headset they sell. they are pricing it up slooults at least to where the street was expecting, but now people are saying that they're trying to order it, and it's saying end of april potentially to ship it. >> yes. and they can't get the handset controllers -- these touch controllers that were supposed to be available right now. they've said they are delayed. this goes back to the apple argument as well. apple may be late to vr, but they're not going to have all of these types of problems that newer people to the hardware game have. >> keep trying. >> i'll try. as i'm walking off, i'll be trying. good seeing you guys. >> john. the ceo of occulus is coming up
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in just about an hour. >> up next, more on those developments in north korea with the former ambassador to south korea joining us on this program, and also as we debate apple supply chain, the ceo of chip maker qualcomm, one of those very suppliers, steve mollenkopf will join us on squawk alley. ther than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. td ameritrade.
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♪ light piano today i saw a giant. it had no arms, but it welcomed me.
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(crow cawing) it had no heart, but it was alive. (train wheels on tracks) it had no mouth, but it spoke to me. it said, "rocky mountaineer: all aboard amazing".
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. china says it firmly opposes a test carried out by north korea which north korea claims was a hydrogen bomb. a spokeswoman for china's foreign ministry says it knew nothing about the test until it was reported. she said china would do everything possible to achieve denuclearization of the korean peninsula. a new report from bank says 63% of american adults cannot afford an unexpected expense such as a $500 car repair or a $1,000 emergency room visit. the study found most are likely to cut back on restaurant meals when money gets tight. pope francis delivering his weekly address at the vatican marking the epifive any. he says the church is tasked with showing everyone has a desire for god without preaching. russian president vladimir putin is back on the ice. he participated in an ice hockey training session in sochi where the olympics were held.
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he celebrated his 63rd birthday last year in a hockey game where he scored seven goals. as if anybody would block vlad peer putin's goals. that's cnbc's news update at this hour. back down to you, guys. carl. >> thank you very much, sue herrera. the dow has managed to trim its losses by about 100 points. we'll see, simon, if it's due to the european close. >> it's certainly looking rough. losses in europe were about twice what you've got here. down about 1 1/3% overall. the data coming through relativery strong economic momentum at the end of last year. probably the strongest of four and a half years, according to the composite tmi that ticked higher from the flash estimate. somewhere p morgan says it puts you in the ballpark of about 50% growth. obviously china is weighing on the market, and also apple. designs chips for apple.
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infinium had a downgrade of its own. then you are back to the big china moves in a down day for the market overall. it's notable that the mining stocks are lower. though it's interesting, you have actually a lot of parts makers that are down in negative territory particularly from france. finally, within france two of the big ad giants separately downgraded today. publicists and -- it's the massive outdoor advertiser. you see the signs everywhere, say for example, here in the northeast, they have half of their organic growth from china and, again, the concern of the
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slowdown there. the change in the currency and what's happening in france as well. back to you. >> simon, thank you very much. >> back to the breaking news out of north korea today. the country claiming to have successfully conducted that test of a hydrogen bomb. u.s. officials have not confirmed those reports. joining us on the phone this morni morning. >> as we've been talking stories crossing the wires, u.s. sources telling reuters the government is stept cal of north korea's claim.
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>> more clarity to come out of the security council meeting. all morning long we've had discussions about the degree to which sanctions are toothless with north korea barring some about-face by china. how does that play out? >> well, i think experience says that sanctions have less affect on north korea, for example, than they have had on iran through the years. that's partly because north korea is much more isolated in iran, less dependent on international markets. it's hard to find something to sanction that will really inflict pain. another problem is, as you suggest, that the chinese have been somewhat less than full in
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implementing the sanctions. it's very -- i assume the u.n. will -- the security council will choose to impose some additional sanctions, and i do hope that it's crucial that the chinese actually fulfill them. sfwlo ambassador, we know the relationship between china and north korea has been in the process of fraying, but do you believe it's frayed to the point that these sanctions could actually be effective? that china could be a louder voice within the u.n. as this resolution is being written? >> well, china's statements in the aftermath of this test seem to suggest that the chinese are really concerned, really upset, and let's hope that that means that they will fully implement sanctions. it's crucial that china join the rest of the world and put pressure on north korea. i hope this time their action newsing sder have some affect. >> been a lot of monday morning quarterbacking going back to these multi-party agreements
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that have been put together in the past. could those have been donnie better and would the result be any different today? >> i think it's clear that the north koreans have been determined to develop a nuclear weapon capability. that was not so clear 20 years ago when i first started talking to them. i think we have tried hard. the north koreans still have not agreed that they should fulfill the commitments they have made to that process, and i think we will have to continue trying to tighten the views. >> is there anything of significance to why this is
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happening now. >> the north koreans signalled about a month ago that they did plan a new nuclear test, and that did seem to lead to some difficulties with china. kim jong il himself had dispatched. you know, there were some signs of chinese dissatisfaction and the north koreans probably were unhappy with that. the north koreans have planned a very unusual party conference for may, and it may be that they were the leader was trying to signal his determination in advance of that meeting. >> mr. ambassador, we'll see what the coming days and weeks bring. thanks so much for your insight today. >> sure. thank you. good to talk to you.
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>> joining us on the phone. when we come back this morning from fang stocks in 2016 to yahoo's investor frustrations, there's a lot to watch in the internet space today. internet equity research at goldman, keith terri, with us next.
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coming up, kevin o'leer yes is with us for the hour today. will he tell us why he has been buying stocks in asia of all
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places. b. >> here now head of equity research keith terry. welcome. >> thanks for having me. the internet sector has a ricky bobby flare to it. if you are not first, you're last. you're up 50% for the last year, or you're pretty much flat. is that going to continue? >> and it's flat at best. i mean, i think it is going to contin
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continue. >> we value them at whatever multiple we want to justify paying for them. amazon we value as a multiple of its cash. who has the strongest balance sheet? >> well, certainly it's google in that group. google has an incredibly strong balance sheet with the cash that they have. facebook softballing a very strong balance sheet. amazon has a relatively strong balance sheet when you look at the operating cash flow that they're bringing in. it's just amazon invests it all back into the business. i mean, you're generating 38%, 40% returns on cash invested. you want to be invest it back into this business. netflix is certainly the outliar in that group. they've done a very good job sort of managing walking that
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line of keeping the international business, investing, all of the profits that are coming from the domestic side. >> as we go into this year where investors are looking at a much more rocky macroenvironment, balance sheets are going to matter a lot more. companies that have been creating earnings by using their balance sheet to buy back cash are probably going to be less favored than they were in the previous couple of years. sfroo looking at the 12-month price targets, the biggest percentage gains are those companies that got incredibly beaten down. pandora, grub hub, twitter. do you actually think those companies will have a run sauns? will figure it out this year? what we're betting on is reversion to the mean, which that should happen for that
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group. >> you can also draw a straight line between three to a dozen venture funded private companies that were working without the same kind of profit motive that were really drawing not only consumer dollars, but also investor dollars away from that group of stocks. we think for a lot of reasons that's going to reverse this year. >> how do you characterize what frit twitter is doing right now? increasing the character limit? tweaking new products? is it incremental, or is it meaningful? >> i think a lot of what we are seeing right now is incremental. that's the right thing. twit ser a great platform. you have 330 million using the platform. a lot of value, particularly when you think who is using the platform. the challenge for them, though, is going to be improving the underlying base of what twitter is. surfacing the incredible value of what's there, and it's not going to be breaking things and starting over from vach. the idea that they're going to
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add 10,000 character tweets as an option is really more of a reflection of the way people are already using twitter. have you to allow those sort of incremental things that are already happening without messing up what's made twitter as popular as it has been. someone said it seemed desperate because moments have not driven fwroet the way they expected. has moments been a disappointment to you? >> i don't think -- we never really expected a lot from moments. it's hard to say that it was a disappointment. look, the -- think about how much google's search page has changed over the last ten, 15 years. not a lot, right? it's -- it looks different. there are more pictures. there's more graphics around it. ultimately it's still search results. that's what twitter has to focus on. google has focused on getting search results better. they have to get the timeline better and ease wrer to use, and getting the core product strong enough so the normal consumer wants to use it the same way all
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three of us do. >> yahoo, more noise from starboard this morning. is it kicking and screaming, or do they have a point? >> anyone that's looking at what yahoo is doing, it's easy to, you know, hindsight is 2020 way of looking at things. if you have even a small chance of being able to avoid paying $14 billion worth of taxes, even though the odds are slim, you still have to take that shot. it's easy to say they didn't do the right thing, but the reality of it is and we sort of said this all along, the odds were against them the whole time. they don't let that kind of money just walk out the door. marissa, i think, fundamentally what yahoo has done, has done a good job as anyone could expect. let's remember what the alternative was when marissa was coming in. yahoo wasn't a company that was heading in the right direction, and marissa took it the wrong way. if anything she kept a krshing
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plane from crashing, and i think that has -- that deserves some credit. we all remember what the number two option was for that seat. i don't think that's what yahoo wants to go back to. >> and you actually did suck seated in getting your occulus rift. >> i did. literally moments before stepping on stage. >> come back and tell us how it is. >> will do. >> keith terry from goldman. thanks. >> thanks. >> the dow managing to stem its losses somewhat. we're down about 191. when we come back, more on the chip industry. the ceo of qualcomm will join john fort in just a minute.
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welcome back to squawk alley. i'm john fort with qualcomm ceo with john mollenkopf. chips are in pretty much everything mobile and beyond more and more. let's talk about china to start off. i'm seeing all these press releases over the past few days about licensing agreements with various chinese companies. of course, that had been the question, how long it would take for those companies to actually come on board, and investors have been wondering are they paying the right price going forward? has that licensing business finally stabilized as far as china is concerned? >> well, i think december was a good month. we feel like we're building momentum, and i think we tried to be clear in the press releases that the agreements that we signed up to are
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consistent with the terms that we agreed with the chinese government on earlier in the we're. you know, we wouldn't sign agreements if we didn't think they were good agreements, and we think we're building momentum. it takes time. it seems to be heading in a good direction. >> let's talk about the chip business. snap addresson 820 also making news here. your flagship high-end chip. the question everybody is wondering is this going to be enough? is it enough better that the likes of samsung are going to come back into the qualcomm fold? losing them was a bit of a hit. how confident are you in this chip? >> we're very confident in this chip. this is a good chip. i think it's hitting the market at the right time. >> one of the xhaleninging things is we are seeing this
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biforation in 2015 where the high end was getting stronger. particularly apple. then the low end was also getting stronger. is the midrange going to come back in 2016 because that will not -- >> i think the thing is happening worldwide is there's significant amount of unit volume still there. everyone is trying to figure out what tier, what price band is actually going to afford that. what's happening, if you could go back to the trend or back at a higher level, you'll see that most of the world is actually the small teens number, actually have lte. most of the world has yet to have lte or even get smart diagnosis phones with lte. >> fast wireless for those -- >> where he. what happens is people get their first device and then move up to a higher price device. it's difficult to look at the u.s. and make conclusions worldwide because most of the world has yet to have this technology transition.
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>> it would be huge if you had cable boxes at home. how sure are you that this will happen in the next three or four years? >> that trend is undeniable. you're already seeing cable operators getting spectrum assets so they can provide wireless service. you see wireless carriers provide tv service and become content providers. i think that trend of having those businesses blend is
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definitely going to happen. from a technology provider point of view, like us, we provide the ability for people to use lte or the cellular capability, plus wi-fi and to blend those service offerings into one. we've also assembled the assets in the company to allow us to provide technology that could be in the home that allows it not only to be something that provides cable and video service, but allows it to provide cellular service. you can provide your home becomes the same as a base station. that trend, i think, is where the networks are going to go over the next five wreerz and ten years. >> hour and a half ago i was over at intel's booth. your friends to the north in california. a lot of talk about whether you guys are going to start eating their lunch in the data center. how much progress is there on that as far as getting qualcomm chips into servers that people are going to buy in volume for data center type operations? >> it's early days, but we think we are positioned to be a disruptor there. the change that's happened,
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that's enabled us is you see two things. one is the big data center providers who happen to also be cloud providers. they're providing cloud services that we all know and recognize. the googles, facebooks, amazons much the world. they are building more and more of their data centers and they want to have alternatives. a company like qualcomm is a natural partner for that. the other one is china. what's happening in china as china builds its cloud, what are they using to be a provider? one of the things that we have done with the business is that we have really positioned ourselves to be a more friendly business in hooin. >> we'll see how long it takes for those trends to materialize. thanks so much, steve. ceo of qualcomm for joining us. we are not done here. ceo of occulus will be coming up soon. carl, back to you. >> a lot to come from john at ces today and tomorrow. as we go to break, let's take a look at the dow where we're down 193. that's some le-month lows for the major indexes. talk about let's head out first three days have shaped up for
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the past few years. that's in a moment
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. stocks continue to struggle even after europe closes. the one handle this morning. kayla, dow down 205 as we head into the early part of the afternoon session. among the names that are in the
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green, wal-mart which remains surprisingly the best dow stock of the year. some are saying maybe these low oil prices finally kicking into a company that could use that. >> what was one of the worst dow stocks for last year has certainly about an a reversal for that company. one stock that we should check is square, which is not only down 1% today and it's down 12% so far this year. largely on the back that the next iphone won't have a headphone jack. what does that mean for their clientele? company hasn't commented. that's certainly hurting it today. >> we mentioned oil. >> s&p lower. chevron. oxy. devin, hess. reflect the continued weakness in crude, which is, of course, closely tied to global growth. something people have a lot of concerns. >> stats about the first three days of the markets for the last three years. they have been in negative territory. interestingly, the nasdaq has
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faired the worst early on in the year, but we know the nasdaq was the only major average to he wanted up positive at the end of is a. >> before we go we want to congratulate one of skauk alley's best and brooits. our producer david who just got engaged for his partner james robinson. d-man, congrats to both of you. that's it for us here. let's get back to headquarters. scott whopner and the half. >> thanks so much. welcome to the halftime show. let's meet our starting lineup for today. jim leventhal is here. for the full hour is mr. wonderful, kevin o'leary, and also here independent macrostrategist paul richards. the breakdown in the stock means to your money from one of the few analysts who actually called the selloff in those shares. the north korea question, the urasia group on what the u.s. should do about that country's h-bomb


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