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tv   Squawk Alley  CNBC  April 8, 2016 11:00am-12:01pm EDT

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john and kayla are out today but with us for the hour, sarah and mike here at post nine. david faber doing some work. kara is with us. the executive editor at re/code. we'll talk to them. >> a report from goldman sachs. yesterday or two days ago we got jamie dimon's letter as well. this one perhaps not as full of some of the dramatic conclusions or at least pros you might get
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from mr. dimon. a straightforward look from ceo and president gary cone. they do go through a number of the businesses and important to find out what we all know. the big adjustments that have taken place in the business over the last number of years and that continue to effect it in 2015. talking about of course interest rates many parts of the world remaining at or below zero. and goes on to say it is important to remember even if the timing and as for the businesses overall, they point out that investment management and investment banking, two businesses accounted for 39% of revenues last year compared to only 30% in 2012. that due in part to changes that have taken place and fixed income currency and commodities
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as a result of higher capital that has to be held in that business and a different mix overall that's taking place. not that they're moving away from income currency and commodities rights. they still remain committed to meeting the needs of their klines but they have reduced risk weighted assets over the last four years in response to structural changes from new regulations. the key one being dodd frank. they increased head count by 11% but managed to decrease overall expenses by $270 million. why? 25% of the total staff is now in places such as salt lake city, dallas, irving, singapore. those are lower cost locals that let them increase their compliance that they had to do and all the other things but decrease overall comp not too much as you sometimes get and
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overall their cultural remains strong and 4% of apply can'ts for open positions. 80% are accept. >> and ty do expect that this year the u.s. nearing full employment, signs of modest inflation. zero negative interest rates could possibly be the new normal writes mr. blankfine. they see china's slower rate of economic growth is still substantial particularly given it's now the world's second largest economy. so some of the highlights from goldman's annual letter. >> thank you for that, david. kara, it's good to have you with us two days in a row. we talked a little bit of yahoo! today and you're reporting that yahoo! is moving the deadline back another week to april 18th. verizon is still the front runner in the moment and i know you pushed back on the google
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reports yesterday too. >> everybody is kicking the tires here. let's be clear. google, i just heard twitter was doing the same thing. everybody is in there looking at it but there's a house sale going on and you're looking through the things to see if there's anything interesting. i'm talking about serious bids and the most serious player here is verizon and some of the pe players could possibly be serious but they're all, most of the players are tire kickers no matter how you slice it. >> i like how you put it in the article today. it's a little like the hunger games except you get to live and you have to overhaul the silicon valley internet giant. >> indeed. i'm making a bid. i decided to make a bid and i feel that carl and i could run the company effectively. >> what's the softbank angle here? >> there was another rumor about
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them but neither of the chinese companies are making bids. they have not signed them and alibaba, it's too much of a mess for them to deal with i think and with softbank they want not to have to pay the fees they had to pay every year to yahoo! for various technology and branding things around yahoo! japan. there will be an interesting player in this because they're such a big part of yahoo!'s valley caught up into yahoo! japan. $8 billion of it or more. so they'll be part of this and the buyer will have to deal with them so we'll see what happens with them. but they're not bidding. they're not going to make a bid. >> you point out just how wide open this process is. you can come in and bid for any combination of assets. do you have any color? once the initial bids are new do you think yahoo! is going to say everybody else make their best offer on this combination of
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stuff? >> i think more than anything it's going to be who can stay until the bitter end. who can be the one that can stick through this process and it's not going to be so much on price. a lot of them can make a crazy price and come back on it. they're more interested in who will be the one at a presents the most lasting through this process. this is not going to be a quick 30 day process. this is going to go on and on and then there's a complication of starboard value and the activists and you have the asian players in here and you have ceo who has been there so there's a lot of moving parts here. who has been part of this process by the way so it's really kind of a mess of a sales process compared to others. compared to ones that are a little cleaner and then, again, you have a ceo trying to do a turn around at the same time. so we'll see. >> so as you're reporting this, kara, into the evenings and i'm
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guessing early mornings what are the freshest details you want people to know now? >> i'm thinking about all the tire kickers. there's been story after story. yesterday, verizon's bidding but verizon said they're interested in buying yahoo!. verizon to me is the most serious player. at the same time there's nervousness about the finances and what a mess it is. whether they can clean it up and sbi grate it. i think these numbers are daunting and at the same time i think what's getting lost in this is there's very valuable properties here including in video and add tech and the question is who has the stomach to put it through and who can make something of the terrific assets and in many ways still a very important brand and at the same time there's a lot of weak parts of it that need to be cleaned up. there's too many employees and
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et cetera, et cetera. >> next up is twitter naming pepsi cfo to the board. and johnson sent his first tweet ever on that move. he said looking forward to partnering with jack and the twitter board to strengthen its power and it's impact. what does it mean, kara? all of this? >> it's not over for them. i think they realize they need to make more diverse hires. continue to make more diverse hires but they have a deadline here of putting out their regulatory documents ahead of the annual meeting and so i think they had to move. they didn't get everybody they wanted. they obviously as we had reported talked to -- they had been interested in oprah at one point. they wanted shonda rimes that apparently didn't want to do it. this is not the end for that board shake up. i think there will be more people and they're still aiming to do a more diverse board which
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has been one of the issues around twitter so i think this was -- the cfo of pepsi is interesting because he was one of the people, the ceo was one of the people mentioned as a possible board member. that din workout and this guy is coming on and they had bigger names and more famous and that may still have yet to happen but it's the beginning of a longer process of changing this board make up. >> clearly the board is under so much pressure as the company is under so much pressure to grow users. i cover him for pepsico. an interesting choice. last july he was named as head of e-commerce and digital chief for pepsico as part of his promotion to become a vice chairman. he used to be on the aol board and helped get that company sold for a good price and also ran pepsico north america and they do get credit for their social media campaigns like doritos and
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that sort of thing. i guess the question is, everything is so scrutinized when it comes to twitter right now and it's board and the tall task that they have ahead of them. is it the right fit? >> yeah. no well, you know, they had a deadline here that they had to meet for this annual meeting to name these board members because this is when these board members get voted on and these two board members particularly wanted to get off the board and were leaving the board and jack has been trying to shake up the board and get a more diverse board but it's hard. it's a company again in a turn around situation. it's going to take a lot of time for whoever is on this board and it's not the easiest board to want to sit on and i think they're going to continue to push toward more diversity and get the growth going because that's the story is product and growth and jack dorsey does
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understand that. and hopefully having that work and again is always going to be sitting with this who is going to buy twitter. is it under pressure. it's not the easiest company in the world to be a board member of. >> you would think, especially he would be a marquee player you'd want to keep. one last point, kara, earlier in the week morgan stanley had pretty negative numbers in terms of expectations for user growth in 17 and we were sitting here talking with jim about it and jim said jack would be worried about that but today he's at square. so it doesn't matter. is that sentiment still living on? >> interesting. i recently saw him and i was asking him how he splits up the day. he goes over there at 2:00 in the afternoon so he spends half days at each place. he looks great. i think that's going to, i think does he have enough fire power.
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and at twitter too. >> and be in the numbers. if they improved and if they do better everybody will say it's great and if they don't they'll say it's because he has two jobs. >>. >> you and i, you and me. >> the markets here. a pretty nice rally. >> and .6%. a big jump helping to lift sentiment today. we're still looking at a down week for stocks.
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gap shares at the bottom of the s&p 500 hit hard after march same store sales fell 6% t. retailer calling it challenging. gap is on track for the worst day since january 8th. it saw weekness across old navy, gap and banana republic. >> when we come back, former best buy ceo brad anderson arguing that inversions are a good thing and can actually create jobs. he's going to join us live to make his case. plus taking a deep dive at what it calls imperial positions and what you need to know and going after the likes of nike and under armour in partnership with rock nation. the president of rock nation is with us when he continues. ♪ there's a lot of places you never want to see "$7.95." [ beep ] but you'll be glad to see it here.
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troubled and disappointed is an understatement. and it's the root cause hoar and outdated tax system that puts u.s. corporations multinationals at a competitive disadvantage with the foreign competitors.
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and you can't change the rules. it shouldn't be changing the rules after the facts and changing them and changing them and changing them again. >> our next guest agrees and says tax inversions may actually be creating jobs. the former ceo. >> good to be back. >> >> hank is a very cautious individual in terms of my experience with him and he has to feel pretty strongly to say something that strong. we agree with him. it sounds so strange. and makes it look harder for american companies. and to be leaving their headquaters in the country and because of what hank referred to, a competitive disadvantage.
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and the consequences of regulatory actions like this one. >> so you're in line with paulson and you do say that it's understandable. >> well it's we have the highest tax rates of any developed country and we double tax our american companies on investments they make overseas if they're going to bring the money back home. and in the country they operated on. and american companies from repartiating the money in the united states. the administration nor congress agrees that's a good idea but neither can get together and do something about it. >> let's fix the problem. this is putting a damaging
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band-aid on a problem. >> i guess the question is you have companies here, yes, they have a higher stated tax rate on their profits than elsewhere but they're not that high. what's to stop a company now as many do that rally most of their profits and try to find a tax efficient way of getting at it. >> our tax ratd is 35% so the effective tax rate for american companies making money in america is the highest of the western world. the reason tax rates for companies are lower is that they make investments and never bring that money back home. and that just doesn't make sense from an incentive standpoint. it diminishes the amount of investment in the united states.
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>> an argument against your case that they should at least allow inversions in the meantime. american companies operating and headquatered here. they have the best access to toppal len from the top universities. they have fair competition. they have the best lawyers and there's so many benefits and advantages that you hear about all the time to being an american company. don't they have to pay their fair share in american taxes and contribute to the base to get that. >> first of all, this is taxes being charged from american companies but in other countries in the world. and at 35% of income is a pretty high share. especially when you think that the american getting that income is going to be paying taxes on the income they make on the money made by the companies they invested in. so it's a pretty high rate of taxization but, you know, at the end of the day, it just doesn't, it isn't the rate. it's how effective the rate is
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at accomplishes the objective of helping us grow the economy. i agree that america is in general the best place in the world to do business which is why so many are headquatered here and not many companies have tax inversion but changing the rules of it will do economic damage. >> just preventing some corporation from moving the headquaters. >> money. and being down on the reinvestment and products. and it's set to be broken down the road. how are we supposed to know it's going to happen. >> companies invest when they think they're going to make money on that investment. >> the climate is positive. >> it's the likelihood of the investment.
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we have done a lot of things in the last 7 or 8 years that increase the complexity for a small business to operate that diminishes the likelihood of investment. so we already have all the strengths you referred to and increase those strengths. >> we didn't get to talk much retail. maybe next time. >> thank you so much. >> former ceo of best buy. part of the jobs creator network talking inversions. >> planning it's first mission and since it's rocket exploded back in june. so will things be different this time around? we're back in a moment on squawk alley.
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check out the price of oil moving higher. flirting with that $40 barrel
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level. a note that carl was talking about. there's an eye on that production meeting between opec and nonopec producers. energy companies are the best performers right now in the s&p. space ex is planning to launch the first mission to the international space station since the rocket exploded in june but the bigger story here may be what it's actually carrying. an expandable space apartment. jane wells is live at the kennedy space center with more. >> this is a big deal. 16 years ago really extremely wealthy business man took nasa technology and now he's taking it back to test it at the space station. it's called the bigalow expandable activity module. it's a tent that tucks inside the space-x capture. it will attach and be expanded with air and over the next two years astronauts will
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occasionally go inside the beam and check it out and see if they like it. could be quiter there. it is a huge step of creating commercial apartments. ten years ago he launched two unmanned prototypes to test them but this new one is rated safe all eyes will be on the seals and even though this is a soft structure he says it's sturdy. >> the structure maintains the shape regardless of any penetration that happens. you can hit it 50 times and it would still maintain the shape. >> it's a material. >> how much have you spent to date. >> everybody else asked that question. >> i know. >> >> it's been very close. i'm depending on that.
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they're using it to build confidence for his real plan to put up much larger self-sustaining habitats by 2020. selling them in a timeshare model to governments that don't have space share programs but guys this is a huge day for spacex. it's going to try again to land on a barge. what's next for spacex? we'll have that next hour. back to you. >> jane wells that will be reporting from space sometime in the near future. thanks so much. when we come back, a new piece in the economist taking a look at what it calls mark zuckerberg's imperial ambitions complete with him as ceasar on the cover. the author will join us in a moment.
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good morning, everyone. here is your cnbc news update at this hour. at least two people have been killed at lackland air force base. it was an apparent murder suicide.
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the shooter is among the two dead. law enforcement officials are continuing to search facilities. the cost of mailing a letter is going down. when does that ever happen? beginning sunday, the price of a first class stamp drops 2 cents to 47 cents a share. the reduction is the result of an expiring surcharge put in place january of 2014 to help the post office recoop $4.6 billion in losses. pope francis's much anticipated document on family life is out called the joy of love. it calls for mercy and compassion but it upholds the basic catholic teachings. a tough first hole for ernie els in the masters on thursday. he needed six putts to get the ball in the cup. scoring a 9 on the par 4 hole. he wound up shooting an 80 for the day. that's a rough start. there's your cnbc news update at
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this hour. back to downtown. carl, you feel for him. >> he is such a gentleman. it's hard to watch. >> he is such a nice guy. i had to turn the channel. >> in the first place. thank you, sue. sue herrera. europe closed a couple of minutes ago. simon is here to wrap that up. >> there's a lot of green in europe today and in particular you'll see that italy is roaring ahead on a gain of almost 4% over in milan. we could be on the verge of something big for the italian banks. you'll remember that the italian bank ceos met in roam earlier in the week. now reuters is reporting they could be closer to issuing a plan on monday from the government which would enable the government to give guarentees to the banks through a state backed fund with private investors to recapitalize and get rid of their nonperforming bad loans with state guarentees and at the same time, if we could have a look at the italian banks that would be helpful and the most profitable banks.
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and they have rocketed ahead. there's also an okay from brussels to compensate almost 13,000 who lost out in the last round of government intervention on the cooperative banks. this would be a real big deal for italy and the ecb and ultimately for unlocking lending. of course the third largest economy for the euro zone so you see the other industrials or the other issues in italy are also riding higher, thank you very much. media set may be on the verge of the media group. could be on the verge of selling it's pay tv unit. that's also lifted them and the oil prices obviously have lifted issues there. as far as the week is concerned take a look at the euro. a lot of central bank vocalizing today verbal intervention. it prevented the euro from rising any further as you can see and of course you saw the bonds rally and general yields
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on the bond down to near record lows although the peripheral hasn't done as well. finally and it's been a very bad week for the u.k. prime minister david cameron who after some side stepping and some fairly oblique statements admitted on national television last night that he did hold a state stake in the offshore fund that was established by his late father revealed in the panama papers and that he sold units for $42 thousand effectively six years ago before he became prime minister. take a listen. >> i paid income tax on the dividends. but there was a profit on it but it was less than the capital gains tax allowance so i didn't pay capital gains tax but it was subject to all the u.k. taxes in all the normal ways. >> the problem is that he promised he would root out tax evasion in the u.k. economy and he lobbied brussels so they
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wouldn't change the rules on this type of issue. the question into the referendum is whether it bolsters those against europe who are antiestablishment and antielite further on the turn out so that arguably the u.k. could leave the european union. it's a big deal guys. back to you. >> simon, thank you. have a nice weekend. instagram, what's app, virtual reality and a billion daily active users. the facebook empire makes the cover of the economist magazine exploring how mark zuckerberg is arming the company to take on google for computing dominance. here to talk about the story is u.s. technology editor. good to see you again. thanks for joining us. >> good to see you. >> talk a little bit more about the comparison. what lead you guys to this idea to make mark zuckerberg the emperor of rome. >> we took on the cover story because we felt like people have underestimated facebook. they dismissed it as a social network that might have a
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fleeting life span when another company like snapchat comes along. i think it's been shown to be really resilient and become much more than any social network which we can talk about but we see facebook and really google as having these ambitions. they're expanding into new areas and their data dominance and all the information they have on users are going to make them very difficult to unsee by competitors in the years ahead. >> that's funny. earlier in the week we had a guest that called them the borg, comparing them to what microsoft was in the 90s saying all the innovation will come if not from them then through them. so what's the liability to facebook? it sounds like a shareholders dream. >> well, the risk to facebook is what happened to microsoft and as you become more and more powerful regulators become more and more interested so we have already seen that on the european side. the german competition authority started looking into their
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dominance and whether users are kind of unfairly forced to accept terms and conditions because facebook is sodom nant. and i would expect in the months and years ahead for them to be even more headaches like google is facing today. >> the anlage with google makes a lot of percent they want to price in terms of its life cycle. is there a risk with facebook? google's value still derives overwhelmingly from the initial core product. it's done many other things to try to build around that but is there a risk too from facebook as it branches out and may not reattain the exhibition it has with the core social network and people spend 22% of the mobile internet time on book and some people have done analyses that
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show that's equivalent to two work days a month so at least right now the flag ship social network is doing really well in terms of the other assets that they have purchased or developed and it now has 200,000 advertisers which is more than twitter has. so in less than a year of having ads it's shown success. that's the photo sharing app. the other where they're positioning themselves for the future is in messaging services and next week they're going to hold their developer conference in san francisco and announce a slew of new partnerships where they're trying to position whatsapp and messenger so you would order a taxi or pay a restaurant bill through their messaging service so they're trying to expand in creative ways.
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>> in terms of the bigger, broader, imperial ambitions that you go through, you mentioned artificial intelligence and virtual reality. who is going to be the biggest competition there? >> on ai they have a lot of competition and one of the main issues is talent. i think they're going head to head with google. google with it's go competition and winning that was able to do that by buying deep mine based in the u.k. so i think we'll see lots of competition for deals in ai and then virtually reality, my view is that it's a real niche and the real opportunity is in augmented reality which they're going to compete in with microsoft, google, samsung and others. so they have tons of competition there. >> something to watch. thank you for joining us. up next on the show, attention netflix subscribers.
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your monthly price might be going up. we have the details when we come right back. t the td ameritrade trader offices. steve, other 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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>> let's get over to the cme group and get the santelli exchange. >> good morning, thank you. this morning we had february wholesale trade and inventories and the information we got from this yeah we look at it but we don't care much matters a lot because it figures into gdp and didn't figure in in a positive way. i brought it up at 10:00 eastern today on the wholesale inventory side biggest month over month drop since may of 2013 since early '09. so this quickly ramped the decision by the atlanta gdp crowd to lower their estimate from what was .4 positive to only you up .1. now that's fairly fascinating because this series and boy it
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garnered a lot of attention began in august of 2011 and between that first read and today this is the second lowest expectation that we have had for any quarter. the lowest was zero so pretty much about a year ago. now steve and many have done very interesting work and anybody that ever traded understands there's a lot of volatility and data and some of the important data like gdp for durable goods they have a pretty descent amount of revisions as well but on the gdp side the notion is certain quarters underestimate and throughout the year you'll see other quarters make it up. many writers were quick to jump in that they fully expect what we're seeing in a lack of growth in the first quarter will be made up in the second and i'm sure it will but the point of this hit is that we are going to average up. that dynamic i understand. and i don't know that any numbers are perfect but traders have been in this reverting
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aspect to the gdp numbers for a long time but the point is we are averaging up as the trajectory of growth goes down and i think that's important to pay attention to. this morning jim was on and it's interesting to talk about rates because it's so counter intuitive but as you look at a chart of gold and i believe we started the chart out in 11, january of '11, you can see there is a bit of a break out going in gold. and in the end it's the same reason u.s. economy is the cleanest shirt in the hamper. makes it very much more appealing. can't think you want to rule out gold especially considering the chart patterns and negative rates. back to you. >> really quickly we do a nail the contest number every month with the jobs number. some viewers wonder if you would
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ever give up the white board as a prize. >> for viewers i would give it up in a nano second. it's all about the viewers. count me in. >> rick santelli, when we come back rock nation boasting an impressive list of clients. this week the company announced a new deal. the first ever sponsorship with zappos. president of rock nation sports will join us in a moment. dow lost some games up 55.
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>> aren't you curious about who those people are? >> i think you need to be aware that we don't see the activities of these companies. there is no follow up association with the company once we have formed it. we form the company, we sent it to the intermediary. he has his or hers and deal with that intermediary is normally a professional, law firm, bank, accounting firm. >> you're not curious? you don want to know who it is? who ultimately owns that company? >> nowadays with the regulations as they exist we have to know who is behind the company and so because -- >> you just told me that you didn't know all of those names.
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>> yes, that is correct because the intermediary that we deal with if it is a law firm in the u.k. they would be regulated by the law society. they would in-turn have to follow all the british rules and regulations. we assume and we have been allowed to assume until recently, until a year and a half ago when we had a new law in this jurisdiction in bbi and in others we could rely. we were allowed to rely on the fact that we are dealing with a regulated provider in a regulated jurisdiction. >> carl this building that we're sitting in, the law firm is under intense global scrutiny right now and talking to jurgen after the interview he told me that they expect that the global intelligence services of almost every nation are focused on this building and it's servers right now. they had paparazzi in the
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streets and there's even been drones flying overhead as people try to figure out what's been going on here over the years. >> talk about ground zero for a global story that's gotten global attention. i was going to ask you about some of the color there in terms of you mentioned drones and security. is it being overrun with press? >> there's a lot of press here but out on the street it's relatively clear. there's been a lot of paparazzi activity. there's roughly 500 people at this law firm. this feels like any law firm that you might walk into in any mid sized city in the united states but they do something a little bit different than what a lot of law firms do in the united states here. they say a lot of their people have been acosted by reporters on the street. people wanted to know what's going on. the president of panama had to weigh in on the conversation here and there's concerns on the economy of this city. this is a city that does a lot of global financial business and a lot of global legal business
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and now it's coming under scrutiny like never before as a result of the scandal. >> that's what i was going to ask you in terms of when the scrutiny is going to broaden out and is there an industry that does what this firm does and is it the one whose documents first leaked. >> jurgen told me that. he said we are a firm that does this business for a living. we don't know who the kounlter parties are of the companies that we incorporate here and they says there are other jurisdictions around the world that do the same thing that we do. we're just the ones that got hacked and he specifically mentioned the state of delaware. in delaware they do something very similar to what we do here. so he feels a little bit agrieved when you talk to him that he's receiving this skr scrutiny and criticism. this is the first that got hacked and this is the first time that we had access to 11 million documents and have been able to attach all the real names to these companies for the first time. >> great stuff and we are glad
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you are there. aman in panama city covering that incredible saga. zappos announcing a endorsement feel. online retailer challenging the traditional model of athletes endorsing individual brands like nike and under armour. joining us is rock nation's president and chief of branding strategy. michael it's good to have you this morning. >> good morning, how are you today? >> good. this turns everything on its head. i'm just curious about this origins. whose idea was this? >> when we signed ronny he asked us to think out of the box and he challenged us to do things differently for him as it relates to endorsements and we have a ceo connect program that we created at rock nation which mentors our athletes, both established athletes as well as draft picks and we reached out to tony at zappos which is located in las vegas and we asked him if we could take a
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meeting and allow him to mentor ronny and meet ronny and ask some of ronny's questions because although he is a very passionate football player he also has a keen eye toward business and we visited with tony a couple of months ago as well as some of his partners and as we're sitting in that meeting and talking about business, it just dawned on me that there was an opportunity here to do something ground breaking and there was an opportunity to take an offensive tackle which traditionally does not get many endorsements and align him with an online retailer in a very nontraditional way as it relates to his sneaker and apparel deal. >> so how does it work? zappos sells all sorts of brands. it's very untraditional. usually nike or under armour you wear their clothing. how does zappos benefit here? >> the unique thing about this partnership is that ronny has incredible flexibility now to wear whatever shoe he wants to
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on the field and he can change from week to week but this deal also includes not only on the field but also his lifestyle apparel as well. so when ronny is not on the field he can wear up to 1,000 different brands if he chooses to because zappos deal with 1,000 differ vendors from around the globe. in that perspective it's unique. in addition to being an ambassador of apparel he will do things in local community in las vegas. he'll do public appearances and work and he'll meet with their staff and it touches differ parts of ronnie's life and nontraditional. >> i wonder if you can address the trade offs involved in going this route. when an athlete wants to sign with a very particular brand he or she wants to associate
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himself or herself with everybody else who is also endorsing that brand. the sentiments that surround the quality of the brand things like that. whether it be nike or anybody else. was that a consideration as you entered this deal? >> not really. the foremost goal here was to align ronnie with a brand that was going to market him and raise his visibility and exposure. when you look at the nike and the under armours and the adidas of the world they choose athletes in skilled positions. you don't see an offensive tackle as a brand ambassador for a big brand. so when zappos said hey we'll not only align with ronnie but we'll market ronnie and build his brand and visibility off of the field that was very appealing to us. so the opportunity to align directly with a manufacturing and to potentially align with other athletes wasn't really a priority for us.
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this was about ronnie, building his brand, telling his story and building a narrative around that story and aligning with a company that was dedicated to doing that. >> i know you got your start in corporate sponsorships at the yankees and this is an amazing evolution. we hope you'll come back. thank you so much. >> thank you so much. >> michael from rock nation. meanwhile, watching some of the gains slip away. dow is up 60 points. at the open was still on track for the second down week. dow down 3 out of 4. hasn't been a barnburner of a week. >> we have been chopping sideways for a little while. a lot of the bullish factors were overnight factors. it was the currency moves and the european banks strengthening so maybe we have to see if there's any genuine buying interest here heading into earnings week which is a week where you have corporate risk. >> yeah. we'll get to alcoa of course. financials next week. we'll walk in here monday morning and see china cpi and
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get our own on wednesday and thursday. >> also the world economic outlook from the imf. there's a lot of expectations that they're going to cut the forecast for global growth and a g-20 meeting so a lot of global talking. >> nice to have you here. >> good to be here. >> guys have a good weekend. let's get over to headquaters. scott and the half. >> thank you so much. welcome to the halftime report. our top trade this hour, the tesla take down. one analyst slapping a sell rating on the stock today calling it overvalued and questioning whether the high flying company can deliver with us for the hour today, jim and josh and john. and mario, the chairman and ceo of gabelli funds. they have $40 billion under management. let's get right to shares on one heck of a ride this past week. up 9% on the amazing new order numbers. on

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