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tv   Closing Bell  CNBC  April 7, 2016 3:00pm-5:01pm EDT

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been -- >> that was a little snarky. >> broader check on the markets, s&p 500 sitting at session lows right now as we enter the final hour of trade financials the worst performing sector today. >> thanks so much for watching "power lunch". >> "closing bell" starts right now. >> welcome to the closing bell, i'm sara eisen in for kelly evans. >> i'm bill griffeth, we have a lot to get to. stocks are extending their sell-off in the last hour or so. a couple of things going on, many but two big things weighing on the market today. we've got oil and according to sara the yen as well. >> according to everyone right now. >> oil breaking below $37 a barrel intraday. >> and the yen storming ahead, breaking earlier below 108. financials the worst performer
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as stronger yen sparks fears over the bank of japan going deeper into negative interest rates. that's something that spooked the market before. we'll look whether this last for banks. >> our yields have gone lower as well. the white house meantime this may be one of the reasons the sell-off, the white house this afternoon saying treasury is working on even more steps to counter tax avoidance after the changes to inversion rules they announced earlier this week and ceos we're showing you there are speaking out against anti-business rhetoric as they see it. we'll tell you what they are saying and we have two business leaders here to debate the issue of whether the u.s. is losing its global competitive edge. that really is one of the reasons we're down 222 points. >> searching for the next great business leader, under armour ceo will join us, his stock
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price is coming up as well. let's get to the "closing bell." with us, ann meletti, brought the rain with her and rick san telli and keith brliss. >> when you look what's happening in the u.s. market we outperform the rest of the world for so long, it feels like the investor is in in this market and we've talked about before, it's been very slow but feels like the u.s. trader has now started to catch up to the rest of the world and think what's going on with it. short interest is that like an eight-year high at this point in time. personally, i thought they would have gotten cleaned out. we started rallying from that but that's not the case. they are doubling down on bets right now and that will put pressure on equities for such. we always talk about oil not
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being able to stay but 40 bucks will put pressure on the equity markets. vix is the thing that is curious, it was in that interesting zone between 14 and 20. as soon as it starts to make a move back up to the 20 handle the market gets nervous and we're seeing that again today. >> we're seeing a flight to safety. there are a lot of factors that move the treasury market and currency market but 10-year breaking below 170 and little economic data. what's moving it? >> i think the best analogy on what's moving markets these days, think about a delicious spaghetti dinner, a little bit of salt makes it taste better. too much salt is a disaster. central bankers and central bank policy, lack of fiscal inno vacation, all of that what's wrong with the market. it's got a nasty taste and i think the carry trades that are counter intuitive like the euro
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and yen, what they do in risk-off scenarios has gotten to the point, the dog wagging the tail point and that is like oil, they are more indelivered to start selling things like equity. it's gotten to that point. remember, it's not only the dollar yen fifth day the dollar is getting hit. look at the nikkei. today is the first update after seven sessions and it's all the same thing and they are down 17% on the year in dollar terms, only down 8% in yen terms. but this is something to pay attention to. i don't know that the remedy is bigger negative rates and that's a whole other story to be nervous about. >> weet get to that later, jamie dimon approached that today. we need to get to john harwood what the white house is cooking
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up on taxes. >> the news is that the markets were reacting to a misquote of a white house spokesman, reuters who moved the story initially, that moved the markets, has now corrected that report. there was a missing word in the discussion of future actions by treasury, that is the word if. what the wougs has said, was that the treasury spokesman -- white house spokesman was saying on air force one, is treasury coming up with additional regulations on corporate tax avoidance and inversions? and the answer was if treasury is working on anything in the future the best way is for congress to legs late on this. this is something that both parties agree on by the way. they want congress to do it. but the white house was not saying definitively, that's what they were reacting to. the quote was incorrect. >> a missing two letter word --
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>> if. >> let's see. i would curious to see the dow chart right now. >> we're off the lows but still down 200. >> it will be interesting to see if this is a comeback. it speaks to the area that we're in right now, the attitude we're willing to believe the white house would be working on more to force corporations to pay the higher tax right right now, right? >> it's not an unreasonable idea. the white house announced steps previous to the one this week. this has been percolating for some time. both parties don't like the situation where companies have the incentives to go overseas and administration calls it un-american to do so. this is the most impactful of the regulations that treasury has announced so far. but the white house was not quoted accurate, or spokesman
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was not quoted accurately. reuters has corrected that report and inserted the missing if and the lead of the story is now not that treasury is going to issue future regulations, it is the white house saying that congress action by congress is it the best way to move on the front. >> as emily wanted to say on "saturday night live," never mind. >> never mind. with that the dow down 195. gained a few points back. ann, we still have you here and want to talk about your portfolio. there is clearly a sensitivity to what is coming out of washington and it's not just what's coming out on the campaign trail. does it affect your investing decisions? >> it's causes more nervousness and that gets to the areas people have been talking about today. there's a safety trade going on investors are gearing towards companies that they feel safer in.
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the problem with that is there's overvaluation, i think taking place in certain areas of the market. if you look at first quarter performance. you can see the areas that outperform the most, utilities, staples, areas where people are getting paid a dividend and feel safe. the problem is that they are in very low growth industries. so there's not a lot of room for upside surprise. >> you're ready to do cherry picking in the beaten down areas like the banks, right? >> the banks are an area that i'm interested in where we're a little overweight. they have dealt with regulation for a long time. obviously more lately than they have in the past. but some of the banks are set up pretty well. they've obviously operated during a time of stress. did a lot of things internally to make changes. with rising interest rates, if we ever get to that point, that will be the tail wind to take them to the next level. the most important thing the
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downside protection is really electr there. by doing that i'm looking at some of the banks pnc, for example, trading at a 11 times earnings this year's earnings, not even out year and pac west is another one i'm interested in. very good balance sheets and good returns. top line growthal be it slow at pnc, it's higher at pac west due to an acquisition but still good returns for shareholders overtime. >> before we let you go, banks certainly are in the eye of the storm right now. also wanted to ask about transports, they helped lead us out of the stock market rebound a few months ago. and now they've been under performing for a few weeks. that an ominous sign? >> all you have to do it look at the charts and transports are clearly one of the broader measures and lead us out and down. i'll go back to the vix.
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the vix always reacts a little bit early on the markets pulling in and late after they start rallying. the transports, the theory between the transports and dow industrial still holds true today even though our economy looks very different. >> a lot to keep an eye on. >> yes, we do. >> one less thing apparently out of treasury and the white house. appreciate your thoughts. >> watching shares of tesla under pressure despite releasing strong updated figures on early demand for its new model three electric car. phil lebeau has details. >> they moved a little lower as tesla reported that for the first week after unveiling the model 3, the company recorded 325,000 reservations. that's 325,000 people who put down $1,000 so that in the future at some point they have the option of buying a model 3.
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by the way, they broad in 49,000 reservations in the last four days. the implied value in terms of sales if all 325,000 people followed through and ordered a car comes out to $14 billion. a lot of this depends on what happens with production and how quickly tesla can build the vehicles and ramp it up. the deliveries start in 2017. tesla says its increasing production plans but take that with a grain of salt. a lot of this also depends on how quickly the giga factory which is close to completion in nevada starts pumping out those battery packs for not only the model 3 but also the model s and x. i've had a lot of people ask this question. what's happening with reservations for the model three and compare that with where tesla was before production of the model s and x. keep in mind they had higher reservation costs, just $1,000 for the model 3.
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that gives you some sense of the increased demand out there for the model three. clearly a lower priced vehicle. >> we'll see how supply reacts to that. >> always a question with tesla. >> appreciate it very much. >> we've got 49 minutes left. just putting our best foot forward on wall street. best foot forward -- >> i get it. >> nobody else needs to. the dow is down 190 points off the lows of the session right now. >> i'm sorry. >> nasdaq under performing and jamie dimon reiterating his bank is a fortress, stock is under pressure today along with the rest of the financials. we'll discuss the merits of dimon's contention next. also ahead, under armour founder kevin plank will speak with us and teaming up with the likes of golf champ jordan spieth. leading the masters right now
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we are in sell-off mode. dow jones down 1%, all but three dow stocks are lower, all s&p 500 sectors are also lower. s&p down 1.3% and nasdaq is lagging. it is down 1.5%. one stock we're watching, yahoo! a big reversal on reports that verizon is proceeding with a bid which may include a yahoo! japan stake and google may be weighing in an offer as well. >> it has turned negative again after rallying. >> a little spike there. >> now down 1%. >> crazy day. jamie dime on's annual shareholder letter was released last night. the bank's ability to absorb losses to the stress tests and kayla has been sitting here waiting patiently. >> have you done the math? does it work? >> the assets and losses change
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every year. their submissions were due on tuesday, you don't know what they are working with. he seems to believe they would be able to absorb it. it's a bold call but this annual letter, it's nearly achieved the notoriety of warren buffett's global letter. in the past he's tip toed around regulation because of all of the investigations and fines the bank was facing. this year he took direct aim saying regulation needs to be revisited broadly and could benefit borrowers more. it has benefited the banks because of regulations and high are capital, large banks are far stronger. if one bank might fail in my opinion there is virtually no chance of a domino effect. jp morgan chase has an extraordinary amount of capital, so much so if all of those 31 banks did fail, the fed stress
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test, jp morgan could swallow those losses, that is how much they are saying -- that size and diverse fiction, it has done well. he says only large banks with large capital bases can finance large companies and that banking does not work remotely like a utility that they still serve their clients. it can't be replicated and the u.s. banks and fort ress are stronger than the global counterpart. >> we had neel kashkari who sat down with jamie dimon and clearly he didn't get what jamie is saying, he's high on trying to break up big banks, right? >> we're still trying to get behind what the motivation is on behalf of neel.
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but one of the most interesting things, he said i don't really understand why the debate is so simplicity, it's either main street can benefit or wall street can benefit. people are pretending the banks don't benefit the consumer at all. the community banks are important to the system, big banks are important to the system. think about these employers, ge, hundreds and thousands of employees, jp morgan can bank ge because it is a $200 billion plus market cap bank. ge employs a lot of people and can get up and running because of loans and deals they are able to get done. >> we wanted to talk about a related story in your beat today to go after rogue traders. you've done a lot of work on this one. >> we're getting to know this one. it's tough to announce but it is sin yak, the name sake is the neoimpressionist painter, to connect the dots to find rogue actors on the trading floors.
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here's colleen graham on squawk alley this morning. >> we use the technology to determine how a trader's behavior changed over time and how it is different from other traders that trade in the same products. we take sort of a toxic combination of events that might be indicative of fraud. say a trader comes in on sundays to work late at night when you norm pally work trading hours. that trader may use offmarket trades booking them into inactive books. this is something to look at there. >> what inspired is actually multibillion dollar trading losses in recent years at their rivals, ubs and society generale, hopefully root out misconduct through chat rooms and e-mails and some of this rogue activity where you have your employees acting in ways that aren't customer sen trick. she said the product is getting
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smarter every day, bet at a for more than two years. they have each put $20 million into the jointly operated company. the goal is to find that needle in the haystack and she thinks because they have traders developing the product, that they can think like traders and find these needles. >> the banking angle is interesting. you don't hear that much about -- which has a $20 billion valuation at this point. all sort of secretive actives. >> one of the reasons why you'll probably hear a lot from colleen and other credit suisse executives, it's a secret company. they won't be seen publicly discussing ventures that they have and never see that company go public either. it gets so much of its revenue from the department of defense and the cia which is also an investor. you can't break down those revenues. >> there goes my idea. >> a story we want to look into. >> kayla, thank you on both counts. >> less than 40 minutes to go
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before the closing bell and still looking at widespread declines with all s&p 500 groups in the red. buying treasuries and yen and buying of gold. nasdaq is down 1.6%. >> when we come back, an important issue, does the u.s. risk losing its competitive edge internationally thanks to a growing chorus of anti-business sentiment coming out of washington? three business leaders will give us their take when we come back. also ahead, under armour founder kevin plank discussing the fierce battle to sign up all-star athletes like steph curry and jordan spieth. don't miss it. it's coming up on "closing bell." mary buys a little lamb. one of millions of orders on this company's servers. accessible by thousands of suppliers and employees globally. but with cyber threats on the rise, mary's data could be under attack.
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we are off the lows of the session but solidly in the red. the dow is down 184 points. the s&p has gone negative for the year. we'll see where we close. 2043 is the level to watch there and nasdaq, technology heavy index is lagging all three down 1.5%. >> that was the big gainer yesterday and now going the other direction now. corporate america apafrnt parentally getting fed up with anti-business rhetoric and regulation. for example, pfizer's ian reed writing about the new inversion rules said, quote, if the rules can be changed ash trarly and
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applied retroactively, how can any u.s. company engage in the long term investment planning necessary to compete? >> that's not all. >> jp morgan jamie dimon writing about the importance of large banks amid calls to ends too big to fail. i do not want any american to look back in 20 years and try to figure out how and why american banks lost leadership position in financial services and goes on to mention that china could take it. >> there's more. presidential candidate bernie sanders calling out general electric for what he said was destroying the moral fabric of america. jeff wrote this, we're in the business of building real things and generating real growth for a nation that needs it now more than ever. he went on to write, i'm proud of all we do and how it all figures into the moral fabric of america is so plain to me, it
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seems senator sanders is missing the point. >> so there's a theme. is america losing its competitive edge? joining us right now nor a discussion on this, robert wolf, founder of 32 advisers and former chairman of ubs and tj roger of cypress semiconductors and gordon bethune. robert, you're here at post nine. there clearly is a theme, whether it's going after bernie sanders for the campaign rhetoric or the u.s. treasury for imposing these surprise rules and blocking a $160 billion merger. >> two of the three were around the bernie sanders interview. it's clear when you have a single platform candidate talking about too big to fail and breaking up banks. he doesn't understand a resolution and doesn't understand living wills and how to break up the banks and that it's the fed not the president that does it, is very daunting. i think secondarily, when you call a company like ge losing
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its moral company when they have over 100,000 employees -- >> 125 -- >> it's just the wrong way to run a presidential campaign it tells you he has an incredible angst against the business community. >> is this all just campaign rhetoric or i mean i know that the treasury rule change is not campaign rhetoric, that's substantive, but do you think that government is anti-business these days? >> there are pros and cons. i can name some members of congress who are pro business but the government certainly is a break on business and break in the ability to create jobs. i keep hearing about tax loopholes and fantasize being in front of a committee and saying, senator, who are the idiots that created the loopholes. when you told me about the loop holds you said they were federal law and i get put in jail if i
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didn't follow them. i spent millions trying to follow the rules and when i pay every cent required, that i'm somehow not paying enough. which way is it and who are the idiots? certainly not us. >> we're talking about a number of issues but the financial times is running a headline when it komsz to the administration saying that the obama administration boarded $370 billion worth of deals according to their tally. this is clearly not just about tax inversions. >> no, it's about uncertainty. it's like knowing what's going to happen, having the rules for 20 years overturned in 20 minutes upsetting plans that sometimes takes two or three years to fruition. business nor investors like the uncertainty and we have a lot of uncertainty there today in the government. >> i mean, listen, we need business tax reform. it's clear. the president has a policy, 25% and repatriation one time at
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14%. i would telling congress, go have an up and down vote, get rid of the loopholes and we may get to 20%. >> that happens in your dreams though. >> i hear you. >> not going to get corporate tax reform this year, a yeardy visible by four. are you going to get it with a new congress? >> both sides want it. we're not that far off. it's 20 versus 25, repatriation 14 versus 19. there's a making of this and i think when bernie sander has this rhetoric and a guy who didn't even support the reauthorization and hitting manufacturing, it's just tells you something is out of touch here. >> why do you think the treasury is moving right now? do you think it has anything to do with the politics of th campaign trail, the increasing frustration and rhetoric and protectionist ideas we're hearing in politics these days? >> the open debate but the obama
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has been an anti-company president his whole career. you've got two companies, drug companies, chip companies, whatever. in the united states we pay 35% taxes, makes you uncompetitor. one of our competitors is in a countries where you pay 15%. as a combined company the tax rate drops by 10 percentage points on the american side and new company which still has all of the same american jobs and all of the benefit to america, now becomes more competitive worldwide and can start growing. i mean, this is a thing that makes sense. it's the kind of planning you talked about planning, the kind of planning that ceos do as a moral obligation as a ceo. i'm spoeszed to maximize profit and share price within the law. so our shareholders, some of whom have college educations and retirement funds invested in us, or indirectly in us, part of that is optimizing taxes. when we do it, then they come
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along, you're getting too good a deal we're going to change the rules now. >> i know we tend to oversimplify when we have conversations on television. and on the campaign trail at the same time, but is corporate tax -- >> we're deep here. >> is it the pancea we're making it out to be? will it make u.s. corporations that competitive just to lower the tax rate? >> it's all the difference in the world on really small margin businesses but the industrial companies world wds are not going to take a 35% hit on investing in a new plan in america when they can take the same money and invest in a new plant in india with a gdp of 5% versus the u.s. 2. we're never going to get that money. we need to reform the tax structure so it attracts the money back to the united states. >> robert, last word to you, as someone who has worked in business and has a close hand to the white house in politics, how do you bridge what seems to be a
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widening divide here and the populist idea that has been bashing business? is it on the ceos to do more op-eds. >> i think jeff and jamie coming out today. these things are needed, they are thought leaders. far left and far right has gone too far. this partisan politics is killing us. business tax reform would pass, we would be better in manufacturing and immigration reform, it's time that these leaders go to the forefront and speak out. i've been hit by being at that intersection but i'm glad that jamie and jeff are making sure we hear about it. >> clearly it's an important issue because we asked robert wolf and gordon bethune to join us and all said yes, enthusiastically. >> appreciate your time. >> thank you. >> we're into the last half hour of trading here today. the dow has come back a little bit but we're still down 178 points, a leading trader will tell us what he's watching going into the close.
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>> under armour founder, kevin plank speaking about giving nike a run for its money. you won't see these folks at the post office. they have businesses to run. they have passions to pursue. how do they avoid trips to the post office? stamps.com mail letters, ship packages, all the services of the post office right on your computer. get a 4 week trial, plus $100 in extras including postage and a digital scale. go to stamps.com/tv and never go to the post office again. and ca"super food?" is that recommend sya real thing?cedar? it's a great school, but is it the right one for her? is this really any better than the one you got last year? if we consolidate suppliers, what's the savings there? so should we go with the 467 horsepower? ...or is a 423 enough? good question. you ask a lot of good questions... i think we should move you into our new fund.
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we're in the most important half hour of the trading session. joining us is mark newton. how much technical damage are we doing right now in the sell-off? >> today is the first day since mid february that the u.s. indexes are starting to pay attention to what's going on in the rest of the world. the s&p has a potential to break and if you look at daily charts, there's a couple of things to note. we've moved up almost towards the highs of this range we've been at since last spring and see a break of the 10-day moving average. and we also see a rollover in what's called macb. we've seen a little dropoff and treasury yields and bund yields pulled down substantially and normally that's important to pay attention because the s&p tends to follow those along with a dropoff in dollar versus yen.
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>> saw it all today. >> weekly basis things are in good shape. sentiment is subdued and momentum is still positive. it's only short term, if we get under 2040 we could have a sell-off. there still should be a chance to buy for higher highers in the next one or two months. >> mark newton, thank you. >> under armour is looking for the next big thing from strunt entrepreneurs. here's a look at the 11th annual cupid's cup competition. >> i don't think we celebrate it enough. it's our greatest asset. >> reporter: welcome to cupid's cup held by kevin plank. in the 11th year they have previously produced everything from an academic school ar scholarship founder to malaria diagnosis test. plank is hoping to inspire and support a new generation of entrepreneurs. >> i want people to believe in
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themselves and intellectual curiosity and someone that realizes they don't know it. and they are dying to learn. >> plank and panel of judges hand select the most promising entrepreneurs in the nationwide competition. >> we're defining a small pace and creating the first maker retailer for shorter guys. >> first ever cricket chip. >> first over the counter solution to sweaty hands. >> the grand prize, 100 grand and chance to follow in the footsteps of one of the most successful entrepreneurs of their time. funny enough he joins us for more on the cupid's cup. we're joined by kevin plank. good to see you again. welcome back. >> it's great to be here. >> you have two finalists now for this year's cupid's cup. briefly, the two companies are java zen and wolf and shepherd, tell us about them. >> you're jumping ahead e we
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have six finalists and they have to give up on stage and they have 90 seconds which this year -- >> on the next page you have head bands of hope. i'm sorry then you've got my best box. >> there you go. >> chewing gum. >> what's that? >> and six foods. >> yes. >> you can't tell us about all of them but the common theme is you want innovation, cutting edge and job growth, right? >> yeah, you've got some of the great companies featuring the entrepreneurs is the point, coming back and giving kids that inspiration and number one job creator we have is small business and celebrating it and i don't think we do anywhere near enough of it yet. cupid's cup we started 11 years ago with a $25,000 price and today over $100,000. over 500 different plik kanlts and nar rowed down to six.
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we have an elite panel of judges this year, including arianna huffington and as well as wes moore one of our celebrity judges and the one and only dan gilbert as well. really great group and happy to be here and telling a good story about what it means to be self-made. >> it's sara here, it makes me wonder when it comes to promoting entrepreneurship, you need a healthy environment, when all we're talking about is members of the campaign politicians bashing big business and treasury deposit breaking up a deal. how healthy the environment is right now for businesses and startup. >> forget about it, that's a side show. people get caught up with what's happening when you're starting with a business, we're so far below the fold. if you're going to start a company not going to be in the millions of dollars but something for kids out of the trunk of their car the same way i did. we can encourage people saying
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don't listen to the headlines and pundits, there's enough people telling you what you can't do. having the courage to get out and find out if somebody is willing to engage your product or service for the hard cold cash in their pocket. there's no bad time to do that and this is as good a time as any. >> i get that. you are saying all of the hand wringing people do about the government regulations that make it too difficult for companies to get off the ground base of paperwork and fees and all of those things you're telling your entremendous newers, go with your dream, right? >> i'm saying it's not perfect. neither side has it right. one of the most important fundraisers that we did at under armour before we went to private equity and before we said keep it on the pass line because we're not sure if we're going to make money. small business administration was fundamental, a woman named kate and abigail adams in
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washington, d.c. looked at me and said the government will back up to 88% of this first loan and i'll give you a chance. there's great initiative from government if you know the right place to look and great initiative from the private sector. i'm saying that there's a lot of hand wringing but it's con jek tour on both sides. it's up to the entrepreneur to make it happen. >> let's talk about under armour, how much of a dent are you making in nike's market dominance of basketball sneakers, which i believe is more than 95% market share? >> look, we can talk basketball and stephan curry is a great topic. jordan spieth finish six under leading the field. we think another true champion that you haven't heard of three years ago maybe didn't know who he was but someone again like
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much of the under armour story and that idea i will find a way, stephan curry willed his way to one mvp and second consecutive mvp and looking to great the nba record for wins in a season. it's -- people can guess all they want and say other teams from other eras, he's a special human being. what joe la cove and golden state warriors have done, it's a true team and something we're proud of and really proud to have the leader of our team wearing our shows and building a great basketball business for us. tom brady and cam newton, as stockholders we're most bullish and excited about the company being built. >> how much does it matter to have those guys on your team? i mean, are you able to measure that how much jordan spieth has an impact or misty copeland in this particular case you signed?
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how much does that adds to your revenue growth? >> what's pretty amazing, the athletes we're not talking about, michael phelps and lindsay vonn. this is a list for the first time in history any singular brand all four major u.s. sports plus the pga tour player of the year are under armour athletes, curry in basketball and bryce harper in baseball and kerry price in the nhl and jordan spieth. it hasn't happened before and this is the lightning shot the company was looking for and positioning ourselves for for the last 20 years in business. >> i get that but what's your return on investment in that regards? >>. >> look, i think we all try to get scientific from a company that invested $710 million, we believe data is the new oil. what we can get closer to our consumer, especially the brand
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we're about to build and are building right now. when you look at roi on athletes, we have 11% of the marketing spends of our growth res knew in marketing and we can spends it any way we want. right athletes and players and focusing with the right leagues. we've been fortunate doing that with great athletes we mentioned and teams like tottenham, we don't see any signs of slowing down any time soon. we came to play, ready to go. >> i want to ask about your stock price which has done well so far but been a bit of a roller coaster. is there a message out there that you think invefrters and some analysts started to question your growth are missing? >> i think we can only control what we control. with 23 consecutive quaurtders and 20% top line revenue growth, 25 consecutive quarters of top line apparel growth, our largest category by a long shot and plugs the growth we're seeing
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international and foot wear up. the growth is coming from everywhere and we're fortunate to be in that position. so look, we're as a company we're incredibly long. we believe in what we're doing and don't look at the stock price but look forward to dog this for celebrating our business this year. we can't wait to do it for 20 more. >> we wish all of the best to the six finalists in this year's cupid's cup. thanks for joining us. >> thanks, kevin. >> thank you very much. >> reports out today that verizon may be ready to make a bid on yahoo!. we'll fill you in on those details next. ♪ ♪ ♪ for your retirement, you want to celebrate the little things, because they're big to you.
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the nasdaq is the biggest percentage decliner. bertha coombs has more on what's moving the nasdaq. >> it's a broad based decline most every big sector. biotech is in the lead on the downside after yesterday's 7% move. i will tell you it is up 7% since april 1st. steve wynn very bullish on macao
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coming back and a 12% upside from here. wynn shares surging on four times average daily value. there's more talk about bidders trying to take over assets of yahoo!. those preliminary bids are due april 11th. back to you. >> all right, bertha. thank you very much. it is later that's it's ever been and david darst has a new acronym for investors. we're hoping it's a short one. e*trade is all about seizing opportunity. so i'm going to take this opportunity to go off script. so if i wanna go to jersey and check out shotsy tuccerelli's portfolio, what's it to you? or i'm a scottish mason whose assets are made of stone like me heart.
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six minutes left. david darst independent investment. consultant and sara is learning about your acronyms. >> today's is prepare. this is sort of in importanceville and sara, prepare is profit. we have to see good earnings and good comments about the earnings. only three of the ten s&p groups forecast that they'll have profits year over year. the r is the responsiveness of central bankers. we'll have janet yellen with
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paul tonight, maybe get a little flavor there. e is economic data. the dataflow had been pretty good this week with the ism and the chinese. okay? "p" petroleum, oil prices were up 5%. you want to see that stabilizing. asia, that's japan and china, "r, currency markets have to stay stable and e, the brex it and you want to stay with dividends that can maintain the dividends. real estate, investment trust, the kind of thing you want to look at right now. >> there's no y for yen. >> i was going to say prepared and that's david darst with bill and sara. >> how do you come up with these? >> he's got another week to think of another one. >> thank you, guys. >> we'll come back with a closing countdown in just a moment. >> we're talking to manny
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it could be a buddy movie. i would like to have a buddy. e*trade is all about seizing opportunity. and i'd like to... cut. so i'm gonna take this opportunity to direct. thank you, we'll call you. evening, film noir, smoke, atmosphere... bob... you're a young farmhand and e*trade is your cow. milk it. e*trade is all about seizing opportunity. 90 seconds before the bell rings. bob pisani joining me, we're finishing near the lows of the
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day. a sell-off nonetheless, bob. >> we had some clarification from the white house on a statement that dropped the markets. the original reporting that came out was the u.s. treasury was working on taking more steps to counter tax avoidance. that's from the white house press secretary, clarified later saying if they are working on any future actions, the most impactful thing congress can do is take some action. a different tone. >> the markets -- >> and the markets essentially bottomed out and came off the lows but a lot of damage already done. >> we've talked about the weakness and strength of the yen. we have got a yen carry trade going on. you borrow cheap yen in japan and go out and buy stuff, including primarily equities in europe and japan. when the trade reverses, the yen increases and you have to go out and sell those securities to go back and essentially cover your position on the yen. i think that is a problem and
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cause of a lot of weakness you've seen in stocks in the last two days. >> thank you, bob. >> going out with a decline of about 165 on the dow. ringing the bell here at the new york stock exchange we've got rex american resources and nasdaq, it's save the dream. stay tuned for hour number two of "the closing bell." >> welcome to "the closing bell" i'm sara eisen in for kelly evans. it was an ugly one, s&p 500 going out with a loss of about 1.19%. the dow closing lower by 171, less than 1% and nasdaq getting hit the hardest, down 1.5% off session lows. all major industry groups in the s&p closed down and financials leading the way lower. >> coming up on the show, manny
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pacquiao will discuss his upcoming fight, which will be his final one. you won't want to miss that interview. >> we have cnbc market commentator mike santoli and stephanie link and jeff from raymond james and steve grasso will be joining us shortly. mike, a lot of moving pieces in today's sell-off. the yen strengthening and financials getting slammed again, interestingly oil down but not too much. >> oil has definitely been directionally connected with what stocks have been doing. i do think all of the things you ticked off are this deflationary mini scale. i don't think it's a big deal. we got to these levels close to three weeks ago, just been kind of knocking around the market. seemed like it hadn't digested the big rally. you can't have financials down 2% and expect the overall market
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to make much of a stand. >> i won't quote what you said to me off camera. but this is a tough market right now. >> it's a tough market. it's a grind every day. a lot of it is we're right between earnings season. in between earnings season we start focusing on the macro. it is mixed, putting it nicely. today we worry about the yen. european banks got hit hard. commodities rolling other than energy. there's a lot to be worried about then the gains off the lows. i get it, let's wait to see what companies have to say on the earnings side but i agree with mike, financials need to stabilize and they go down every day, that's kind of disappointing given it's such a big representation. >> you have a good look at this because you look at the technicals and the fundamentals of what's driving it. what are you seeing? >> i agree with stephanie. the financials need to stabilize here. the financials until the yield curve steepens, we'll have a tough time stabilizing. with the negative interest rates
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in germany and japan, seven and ten years out it anchors our interest rates here. they've been regulated out of their profitable businesses and i think it's a tough call on the financials here. >> steve, how much technical damage did we do with this sell-off today? >> you know, if you look at technicals, we didn't do that much damage. we're right at basically flat on year, that level 2043 in the s&p cash. if you go down below that, the ultimate basically stop if you got long on the last rally should be the 200 day. it's called 2050 and s&p cash bell but everything that -- you can't rally without financials. if financials will not stabilize and i don't really see the ten-year getting weaker. i don't see why financials should stabilize. look at oil. look at financials. look at global growth or lack there of. there's no reason to dive back
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in the market but it does feel like a trading range. nothing is broken just yet. >> it's kind of interesting that the cyclecals and energy stocks did pretty well today relative, right? at the same time, you had staples doing well. it's like people don't really believe fully that you want to embrace the stocks but if the economy does improve throughout this year and data has been mixed but some of the industrial date at a has been better, that's encouraging. earnings are so important. guidance will be so important and what happens to the dollar. >> the weaker dollar should start to help although probably not as soon as next week. we're still dealing with the lag impact of the stronger u.s. dollar. the question is, how much bad expectations are built in to the earnings season which kicks off next week? >> you had one of the worst preannouncement seasons ever in terms of negative versus positive guidance. you would think that groundwork is set for upbeat surprises once you get in there. the problem is the stocks have run off the low.
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the industrials have done well. i think the key will be how they trade off of maybe not first quarter numbers and if they give guidance and say no longer have a dollar head wind as we lap last year's rally. that's a good thing. i don't think anything was really defined today in terms of a trend change. yesterday we got this risk on head fake biotech streaming higher and trading range type action ultimately. >> the industrials look pretty good to me. they are trading below what is typically trough pe ratios. and this sell-off should come as no surprise. you had not as of last week, 93.3% of the s&p stocks trading above their 50-day moving averages while not historic, that's only happened like six times in the past ten years. >> who do you like right now what would you buy here? >> i think some of the biotechsxts are interesting after the sell-off they've had. >> big move up yesterday, 6%.
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>> they are still way down from where they were. especially the ones making money. i think the cyber security stocks are interesting because a lot of legacy people are way behind the curb on cyber security. raymond james is spending a ton of money on cyber security. i like some of the health care names, we've been in dexcome for a long time. it's been a great run. they make the best wireless glucose blood monitoring system in the world. there are pockets where you can buy. >> what about for protection? what is your safety measure of choice? jamie dimon says volatility is here to stay. >> periods of low volatility have been followed by periods of high volatility. we've had periods of high volatility. i would look for volatile to go lower in the back hax of the year and i think the financials are very interesting especially the smaller tiered financials.
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>> grasso, i was looking to see how yahoo! finished. the talk early on that verizon would maybe make a bid for them. what do you make of that? are we finally going to see light at the end of the tunnel for that company that may -- we'll talk about it later but may be in free fall? >> everyone talks about what the true valuation should be on yahoo! and what's in the stock price and not in the stock price. i think there's a lot that's already in the stock price. the risk is probably to the upside. i've been in and of the name. i do think that the risk is to the upside in yahoo! >> i know we're going to talk about yahoo! later but the theme of the day starting with the jeffrey immelt miss and shareholder letter. is this out there at all? maybe it's not priced into the markets but this realization that it's not exactly a business
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friendly climate, whether it's on the campaign trail, just rhetoric or treasury making moves this week? >> there's something in the air that's a little bit hostile to companies with very high profit margins. >> just say little bit. >> you've also have had this little uptick in the corporate layoff cycle. there's a sense out there that the payoff from the whole profit cycle went in one direction even though the job pictures looks really good. >> hiring has been very steady but seems relurk tant when it comes to big companies. i don't want to point to today's market action -- >> steve? >> i mean, obviously, you have to look long and hard to see a deal that the government is not getting involved in. but i think to mike's point, there's more to deal with deutsche bank and the 10-year collapsing and more to do with lack of global growth for today's tulg actual actions than
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the negativivety, but that is going into the calculus on stock specific issues. >> this is what i was talking about at the beginning. we're not hearing from companies and corporations and guidance, we're focused on macro and it is very mixed. every day we focus on one or the other. we had a huge rally, complete risk-on. everyone thought we were off to the races only to be reversed today. for the markets to settle we need to hear from companies and guidance. i think it's going to be pretty good. i would prefer the market to be down into earnings because expectations are a lot lower. >> to your point on this atmosphere, you had the backlash from pfizer and ge fighting back as well. it would appear that company have gone far enough with the anti-business rhetoric on the campaign trail and the seemingly anti-business -- >> government as well.
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>> the boston globe detailed exactly what the package was that drove ge to move to bosz ton. you could say that bernie sanders said mean things to us on the campaign trail but states begging and cities begging to have those companies come. >> it might not be directly linked to the market, it is out there and what it is linked to is the appetite for deal making which did help drive the market gains last year. i wonder what we're going to see on that front given that two big deals have been squashed so far this week. >> at least from our perspective, it has not been very good since september of last year. i do think you're going to see buyouts in the cyber security space because as i said, the legacy companies are way behind the curve and you'll see consolidation among the smaller tiered bank. you saw c1 get bought out by bank of the o zarks. i think you'll see more of that. >> thanks for joining us, stevie
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grasso we'll see you later as well. >> all right. >> steve and rest of the "fast money" gang coming up at 5:00 eastern time and talk to the head of u.s. equity strategy at ubs who says today's sell-off is just the beginning. drum lower can stocks go? >> meantime, donald trump campaigning in new york as he tries to bounce back from a tough primary defeat in wisconsin. new analysis is showing basically all of wall street is betting against him winning the presidency. we'll have details on that next. and boxer -- what are the odds that sara is on is so is manny pacquiao. >> and got 1.5% move on yen. >> and lost his nike sponsorship after controversial comments about the lgbt community. he'll join us to talk about that and his upcoming fight which we're told is his last one. >> final, yes. >> we'll see what shape he's in too. >> i have a feeling he's in good shape.
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said we're not worried about negative interest rates in the united states. he's a little more concerned about the opposite, seeing interest rates rise faster than people expect. >> joining us now to discuss it is the financial reporter from the "washington post" and cnbc contributor, interesting to see a bank executive worry about fast rising rates which would be good for his bottom line. >> i think what's important here is that as i've been saying for several weeks now, that no rate hikes in 2016 or no rate hikes in march is not the same thing as no rate hikes in all of 2016. market expectations have gotten too far out in terms of anticipating just one at not one until december if even that. you heard recently from several fed presidents, charles evans saying markets may be a little too pessimistic. the fact you're hearing that from some of the most dovish of the committee, they have to be
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prepared for the possibility that the fed could move in june. >> let's not forget, it's all about janet yellen and still sounding pretty dovish right now. the likelihood of them raising rates faster than people expect is pretty low. >> it depends on which people. there's a wall street journal report that says they are expected to increase in june. investors seem to have a different expectation out there. one thing that is important to note, what jamie dimon did not mention was donald trump. i was surprised to see there was no mention of the u.s. presidential election in the possibility of what some of the shocks could be to the economy. >> i guess we have to talk about what interest rates he's referring to. he may not be talking about what the fed might do. it seems like people might be caught by surprise about a heating up economy that gets market interest rates going up. that's far from a far gone conclusion that if the fed goes a couple times this years, that 10-year yields will follow step
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for step. it's tough to handicap exactly what he's talking about. >> came right down. >> how important do you think the election is for interest rates and fed in their decision? >> there is this sort of idea out there that the fed wants to ensure that the economy stays strong and doesn't slip ahead of presidential election. and clearly that offers some type of uncertainty in the fed's calculation. i do think that this -- it can go too far with that analysis and i don't think the fed is trying to make the economy run overly hot to give the incumbent some -- party some sort of leg up in this election. >> i saw on twitter a column that says that wall street doesn't want to see donald trump elected? >> not that it doesn't want to see him elected necessarily but they are not pricing in the impact of the potentially a donald trump presidency. we took a look at data from macro risk advisers which found that the options market is
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showing implied volatility in the fall is not higher than it is in the summer despite the fact we could see a major upset in this election going forward. so what does that really tell us? does that tell us the market is maybe too placeant about the possibility of a trump presidency, even when trump's policies are some of the most radical out there and could be a major shock and below to the american economy xbl maybe wall street isn't as worried about his policies as mainstream media thinks. >> that is a potential. when you look at the analysis of what his policies would do to the economy, his trade policy alone would kill 4 million americans job. that seems like something wall street should be pricing in. >> or does the market look at the odds and say, if he's the nominee, it's clinton's election and probably the default scenario so we don't necessarily have to price in something different right now? >> that's what the analysis found.
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the markets are betting that donald trump will luds this election. >> you looked at the options market around the risk of a brexit on june 23rd and found something very different. >> that's right. right now implied volatility is very high in june, around the time of the vote around the brexit and that's implying as much as a 6.5% one day move. you see very different odds going on and very different expectations for events that both could be a shock to the uk and shock to the u.s. >> always good to see you, thank you. appreciate it. >> we've got a news alert on gap. seema has the details. >> same store sales for gap are out and the number doesn't look too good. comparable sales down 6% versus a 2% increase that it saw last year. banana republic down 14% from march. the company saying while march proved challenging we remain
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focused on taking the necessary steps to improve results across the portfolio throughout the year. gap same store sales for march down 6%. the stock is reacting down more than 6% after hours. sara and bill, back to you. >> ouch. >> yes. >> the gap has had a lot of problems themselves, right? then layer on that a difficult discretionary environment, if you notice today the consumer discretion, a lot of consumers fell hard, limited and costco didn't deliver super great numbers and those are names that people expected good results from. this they are seeing tepid results, something like the gap with a lot of problem is going to struggle. >> banana republic has been weak for a while but old navy was a bright spot. >> seems like the gap for years always has had one problem child in terms of its three divisions. now you do have two. also the stock field position
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had gotten ahead of itself. a couple of upgrades and still up 12% year to date before this afterhours drop. i think it cash cash flow support and dividend support and idea down the road if ever we do another retail industry, this could be the one that gets done. >> wow. >> that's something to contemplate. >> we've got to go on that one. >> i didn't predict it. it's out there. >> are startups like uber and lyft in a bubble? we'll hear from a top venture capitalist who says we're seeing a vc correction right now. >> but first, former boxing champion manny pacquiao will discuss his final fight and losing his nike sponsorship. we're back in a moment on "closing bell." people talk about "deals"
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call liberty mutual today at take control of your rates. visit a local office or call see car insurance in a whole new light. liberty mutual insurance boxer manny pacquiao is getting ready to hang up the groves after thinhis fight this weekend. >> he'll square off against timothy bradley junior. he is fighting for the chance to win the series against bradley as he has beaten and loss to him in past fights. manny pacquiao joins us with vegas for more now. this is it. this one is the last fight for
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manny pang kcquiao, yes? >> yes, thank you. >> you can tell you. >> nice to see you. this is the last fight whether you win or lose against bratdly this time, right? >> yes. >> how do you feel going in? >> i feel excite and during the fight this part of my legacy and you know, very important. >> are you going to be wearing nike in this fight? i ask because it was a big business story for us when they dropped your sponsorship over remarks you made, they were pretty bad, animals are better because they can distinguish male from female if men mate with men and women mate with women, they are worse than animals. that is attributed to you and nike dropped the sponsorship.
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>> well, i don't want to -- person in my life, i'm still wearing nike shoes in the fight. i mean, i'm comfortable, you know, what i said is on that video they misquoted that video because that video interview was five to ten minutes. i mean, i'm not condemning anyone or who am i to condemn them. i love them all. >> but if you were misquoted, then why did nike take back the sponsorship? if you were misquoted they would give it back again, wouldn't they? >> i don't know. i don't know because they cut the interview short and the whole video is about ten minutes and they didn't show it.
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and we know that politics in the philippines election -- >> so what are you going to do, manny, now that this is your last fight? i know you're involved in politics in the philippines. you've amassed quite a fortune. what else do you have in mind? >> well, even before, i'm already helping the people and you know, the money i earn in boxing, not only spending on my own family and own self-and helping people and giving them shelter and giving a house free for its family and giving sustainable livelihood, scholarship for the children. i'm happy doing that and after my boxing career will continue to helping them because i've been there. >> are you talking to any other sports apparel makers like under armour or adidas now that you're
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on the market? >> i can't give a comment for that but there's some of them and talking about negotiating like that and you know -- i have a manager for that and they are talking about that. >> all right, manny, good luck with the fight. thanks for joining us today. >> good to see you, manny pacquiao. >> the final fight, end of an era. >> so he says. >> time for a cnbc news update. >> a new poll from associated press gfk shows 7 in 10 people including close to half of republican voters have an unfavorable view of donald trump it's a opinion shared by majorities of men and women, conservatives and moderates and whites and hispanics as well as blacks. russia's prime minister meeting to discuss the cease
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fire after a welcoming ceremony medvef laid a wreath to the massacre to the armenians. >> police demonstrated for better wages, they marched to the prime minister's residents, one of the sought after books is discovered in the uk, a copy of first folio printed in 1623 was found in a stately home on the isle of butte. it will go for sale on the first time since almost 400 years ago. >> that story is right up bill griffeth's al lee. >> you know a first folio is a holy grail, unbelievable to find something like that. amazing. >> first time in 400 years it will be on display. >> crazy stuff. appreciate it. >> the leak of of the
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controversial panama papers exposing the secret bank accounts of leaders around the globe. the next guest says the business of helping weathery people hide cash is a pretty crumby one, he'll explain why in a moment. disney is unveiling the first look at "rogue one." the excitement is palpable on the panel. whether another blockbuster film can helped the disney stock which has plunged since the force awakens. [dad] i wear a dozen different hats
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>> the fallout continues from the panama papers. but with recent crackdown in global cooperation, there are fewer and fewer places to hide. >> our friend ken brown from the wall street journal wrote about that in his new column unhedged, the title panama papers, hiding cash has become crumby business. i love that business. that is so ken brown. he joins us to talk about it. >> little tongue in cheek. >> we're trying. >> it's not a good business anymore, is it? >> if you look buried in all of these documents is a bunch of financial information about this law firm. what it shows is business is pretty lousy, business of incorporating companies down by two thirds in the last few years. business of issuing bear stock, this old thing if you don't have to register a company, if you physically hold the shares you own the company, down from 6,000 to 170 now.
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it's a tough business for them. part of it is there's been a big global crackdown. >> it's the age of transparency, can't hide anything any more. >> the banking system has gotten more sophisticated and communicates better and u.s. started to crackdown own terrorism funding after 9/11. and then the global organization has kicked in. it's been very tough. if you're an american who lived overseas, you have to file forms every year. if you don't file them, the penalties are awful. >> that sounds like authorities can declare a victory but is it possible they are trying things that are completely outside the realm of what this law firm might have done. are there other venues? >> i'm not saying that people can't hide their money. definitely the case. it's gotten harder and more expensive and riskier. the trick of it is, you have to stay away from the banking system. what do you do? people talk about bit coin and
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real estate. buy real estate in cash. it's not sitting in a bank. swiss banks are not safe any more for that or luxembourg banks. carrying suitcases of cash -- you go to hong kong at the board frer china and that's what people do. you don't want to do that with a lot of money, that's what's happening. >> tough getting through airports anymore. >> have they done a good enough job of enforcement in your view? >> it's just getting rolling. 96 countries have signed up to share this information and that's just starting now. so that's really the first global effort of that. the oecd won't be enforcing it but all of these countries will share information. the flaw in that, if you're a correct country, you get the information and don't prosecute it. if your leaders are stealing money, i wrote about the malaysia scandal now in our newspaper today. if the government doesn't want to go after the people who are doing the wrong doing, there's not going to be nobody caught, right? >> i wonder how much better the u.s. financial system is than
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the rest of the world? oecd is a global entity but the u.s. does do a better job after 9/11. >> the u.s. is the real driver of this. because first of all if the u.s. goes out and says you don't comply wit us, can't be part of the u.s. financial system, you need to touch the u.s. financial system. every dollar transfer that goes around the world goes through a u.s. bank. you get caught and people have gotten caught with that. they've gotten better and better. >> all of those panama papers and what -- have you had a chance to see any of them? >> we are not part of the group, we're seeing them online like everybody else. it's interesting, there's new stuff every day, interesting stuff in china, chinese government is sensoring everything on this. more on the david cameron's family today. it's an interesting story. >> it is. >> more to come on that. >> always good to see you, thanks. >> ken brown joining us today. >> we're in correction territory and our next guest does not mean
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the stock market. up next we're talking to a venture capitalist on why a slowdown in unicorns and ipos isn't necessarily a bad thing for the industry. buyer beware, yahoo!'s books may deter some companies, verizon is moving ahead with a bid of some kind. you're watching cnbc, first in business worldwide. my mom loves giving me advice. she even gives me advice...
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>> our next guest says we could be in the middle of a venture capital correction of sorts. joining us, we welcome back tony chan, ceo and managing partner. what are you talking about here? >> we're probably about six months into the beginning of about a 24-month correction. in the last quarter you saw about 10% decline in volume and dollars and you also saw the beginning of injections of sobriety into what was a previous boom period. increasing interest rates, inching up by the fed but really valuations coming down. if you look at public markets such as sas enterprise, 6 x and now at 3 x. >> is it mostly manifesting in the lower valuations in people being slower to put money to work or are you seeing companies being forced to fold it up? where is it really? >> i think it manifests itself
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all across the dimensions. first you see companies that have a rational business model are going to gain a premium. even though companies like fidelity wrote down about 17 of their private companies, they also wrote up some companies such as air bnb and honest company, companies that had a rational and sound business model. so one i think you see a separation between those companies that just been focused on quantity of revenue and quality of revenue. i think you'll see the pendulum swing back. >> why do you think it will be 24 months to get through the cycle? >> it's a guess. who really knows. i was asked to make a guess. i think it's about 24 months. that's what media does. >> i guess maybe what are some of the things you'll look for to say we're at the end of this terrible cycle? >> i don't think we're at the end. we're six months into 24. when you look back in 2000, you had 260 ipos in 2000, clearly the height of vc backed companies and look in 2015 as we
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began the sobering period, 70 ipos and zero tech ipos. you kind of project that forward and it feels like we're kind of in that period of something that's going to take about six months to 24 months. >> a lot of people think when uber goes public that's going to public something in the signal. interestingly enough, uber ceo recently spoke with us here on cnbc and talked about this idea of going public and how they are not in a hurry. have a listen. >> we're not in need of public capital, if that makes sense. but there are also of course is that sort of -- i call it the moral obligation with investors who put money in and need to see liquidity and we have employees as well who put in a lot of blood and sweat and tears and to make uber successful and they own equity. so, we have to ultimately find liquidity for all shareholders
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but i'm going to make sure it happens as late as possible. >> let me just add to that, mark cuban was on and said he thinks companies are waiting too long to go public because they miss the sweet spot in the growth period. clearly uber has had a real sweet spot and valuations are high. >> it depends on whether you see an ipo event as a value creation or value capture moment. in the boom period in the prior bubble there was windows of period where it was about value capture not creation. there's three reasons to go public, one, it's a branding event. two, a liquidity event, we can't forget it really fundamentally is a funding event. so for a lot of those private companies, they have that luxury for just greater option value and i think there will be other ways to get liquidity. >> how correlated is what you're seeing in terms of private money to what's happening in the stock
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market to what's happening in the macro economy, this idea that the window of super easy interest rates is going to close? how much is that percolating? >> it's all correlated but it lags. so the venture market and pe lag the public markets. interest rates will start inching up but going up about 25 -- so april 26th we should see 25 bits, lag from six months to 12 months. >> when do we start seeing ipos again? >> i think within 12 to 24 month some the best you'll continue to see air bnb, maybe a snapchat, those will still be able to get ipo and funding. >> maybe you'll get a premium because they have been the survivors and actually outshine everything. >> we'll separate -- >> the fed call will move in april, right? >> who knows. another thing i was asked to predict. >> you're only saying that because we asked you. >> you can say less than 24 months. >> there you go.
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>> thanks, tony. always good to see you. >> yahoo! wrote the book for prospective buyers and apparently not pretty. despite being in what re/code's kara swisher calls serious freefall, verizon may be looking to snap up the search giant. we'll have that coming up. squawk box is getting ready to have some political heavy hitters on its show tomorrow. don't miss alan simpson and erski erski erskine bowles and that's tomorrow on "squawk box". >> when you're having lunch. >> mid morning breakfast. re you? 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.
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yahoo! shares popping initially on reports of a potential bed from verizon and also reported interest from google. the stock then sold off after verizon ceo talked to cramer about yahoo! back in february. >> we said we would look at it. i think their board has been very responsible in how they are doing this, very deliberately and logically. we have to understand the trends that we're seeing and some of their results now. but then at the right price, i
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think marrying up the assets with aol under tim armstrong's leadsership would be a good thing -- >> so then we get the story from kara swisher that the book put together for put together prospective bidders. it looks like the company has been in freefall for a while. >> i will say most of the financial details about the broad market performance, company performance pretty much linked up with yahoo!'s public guidance. so that piece wasn't a surprise. it did sort of highlight some of these other side deals they have for revenue from yahoo! japan, backed by soft bank. essentially all these noncore revenue items that may go away. what is the core operating performance of yahoo!? that's a fundamental question. what yahoo! is doing is running a wide-open bidding process. the process is going to go for a month or two for sure.
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what they're saying is, come in, look around, you can buy the whole company, you can buy the core web business, maybe japan along with it. we're willing to listen to everything. we'll consider your proposal. we're nominally going ahead with the idea of spinning off the core business. i think it creates a lot of static out there. >> meantime, what do you do with the stock, right? >> well, you have to have patience for sure. i think if you have multiple bidders, but then you also have multiple bidders fitting together different pieces of the company, that's going to take a little bit longer in my view than just a month or two. in the meantime, given the correction in some of these other internet stocks or internet-like stocks, there are better places to put your money. >> i do absolutely think it still comes down to verizon, we just heard the ceo right there, they are still kind of the likely bidder. they would put it together with aol which they recently bought. i feel a lot of players feel compelled to kick the tires and
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consider this. there aren't that many sources of enormous web audience out there. >> what about this report about yahoo! japan being part of the package is going to be important. about $8.5 billion stake? >> i have to say, i don't know really where that gets you. it certainly would make it slightly cleaner for yahoo! because it would essentially leave the company as a stub holding alibaba. but i don't necessarily think that will be the decisive thing. look, people are doing back to the envelope math and say if it went for the multiple of cash flow it went for, maybe it's worth $6 billion, $8 billion. that's still an educated guess. and the market is pricing it not at zero, but something less than that. >> verizon, if it does get it, i think the stock would get a hit. because people would spend more than they want to spend. if the stock were to get hit,
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that's certainly something i would put on my radar screen. >> what exactly are they getting. >> they certainly need content. that in itself will give them a nice boost. and aol synergies for sure. i think there are a lot of pieces that could make it work. and verizon doesn't have that right now. >> the market also not really a big bite from verizon. it would certainly be manageable. >> the soap opera continues. >> absolutely. >> medical device maker receiving fda approval for its imbella heart pumps for those going through cardiogenic shock. the stock is up 4.5% after hours on the fda win. back to you, bill. >> all right. seema, thank you very much. so, star wars fans out there somewhere are feeling the force this week. the trailer for rogue one, the
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newest film, in just two days after the force awakens was released on dvd. what this momentum means for disney, and its stock, when we all come back after this. the pursuit of healthier. it begins from the second we're born. because, healthier doesn't happen all by itself. it needs to be earned every day. using wellness to keep away illness. and believing a single life can be made better by millions of others. as a health services and innovation company
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the trailer for the latest "star wars" prequel rogue one is out eight months before the film's release. "star wars" fans will now have a new movie to look forward to every year, as a sequel to the force awakens last year, released in 2017. another prequel is out in 2018. >> you got that? disney stock is down more than 13% since the force awakens hit theaters last december. what could a st"star wars" movi every year mean for the company? the rogue one is the beginning of a new spin-off series. these are with some characters from the "star wars" universe, but with different story lines now, right? >> we'll trust you to keep that straight here. >> you're loving this. >> i had no idea this was on the way. i mean, obviously they're trying to maximize this franchise.
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it's kind of what disney does. what's ironic is, isn't it coming just as people feel like they really have rung the marble franchise out to the max at this point? i guess they're going to follow a general script right here, mix and match the character sets as you said. it is not necessarily a needle mover. >> it's important, though, that this is one of the highlights at the company. they have some struggles in their -- in espn. there's no doubt about that. and i think that this is a nice offset. but i don't think it's going to be enough. i also think the theme parks, the ecosystem theme park theme is also very positive. that's playing itself out as well. the stock playing premium to the group. >> there are also the questions about leadership. is that going to be an overhang on the stock? >> it could be. >> but i think either one could be extending. if they go outside and get cheryl sandberg, that's what the rumors are, that certainly could be a different story.
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i think ifvers staying would be fine. >> the beginning of the spin-off series, i don't think the demographic that they're going after is -- >> obviously this is a young adult and younger than young adealt kind of a play. maybe it makes sense on that level. because you have to essentially kind of plant the seed to this generation. i'm the perfect age to have become a real "star wars" fan, but i'm not -- >> we're invested in the previous movies, and the characters that came out of that. the younger generations may become invested in these characters in this series, don't you think? >> but from an earnings point of view it will not carry enough to support the premium valuation. >> it's all about the bottom market. >> it's all about the stock. >> you must be fun taking your kids to the movies, right? >> i haven't been to the movies in a very long time. >> you know what i'm encouraged by, it looks like we're going to have another female super hero, which i applaud. >> look at the animated heroine.
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>> just put them in the movies. >> another late day tomorrow. >> they promoted the "frozen" stars. >> oh, we've got to go. i thought we were watching tomorrow. >> sleep well. thank you. that does it for "closing bell." "fast money" begins right now. we'll see you tomorrow. thanks, guys. "fast money" does start right now. we're overlooking new york city's times square. tonight on fast, a top strategist from usb said stocks have much lower to go. just how bad will it be? they'll be here in moments to explain. something is happening in the u.s. housing market that hasn't happened in 40 years. it could be a windfall for widely held stocks. the names later in the hour. later, the man who oversees $16 billion on behalf of the state of illinois, pulled his money from a number of hedge funds, including bill akman's. first, we start off with a

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