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tv   Squawk Alley  CNBC  August 24, 2016 11:00am-12:01pm EDT

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good morning. it is 8:00 a.m. at tesla headquarters in palo alto, california. "squawk alley" is live. ♪ six full days ♪ so many ways i'm aching out i'm aching out ♪ welcome to "squawk alley". this morning joining us former apple chief evangelist guy okay with -- kawasaki. >> tim cook throwing his weight
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behind hillary clinton holding a fundraiser. josh lipton is in loews all to . >> reporter: tim cook is hosting this fundraiser on his own accord. cook will be joined by lisa jackson, she, of course, is apple's vp of environment policy and social initiatives. for these two executives it's really a way to passaic sure they have a friend in the white house if hillary clinton does win in november. >> if they can host a fundraiser that is a great way to ingrtiate themselves with a future party leader and to ensure if they have concerns legislative or other policy concerns in washington, that those concerns will get a fair hearing. so really this is all about
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access. about ensuring cordial relations so that they are in a position to call in this chit should the need arise. >> reporter: cook by helping to raise money for clinton is backing silicone valley's preferred candidate here, the tech industry has donated $3.3 million to clinton through june, according to crowd pack. trump has received just $117,000. earlier this summer clinton did unveil a series of proposals for tech. she says she's going to push for affordable internet access for all american households by 2020. a student loan deferment program for entrepreneurs with the option of forgiving up to $17,500 in debt if they launch a business in distressed communities and support for a start up visa allowing top entrepreneurs from abroad to come to the u.s. this is the second fundraiser cook has held just this summer.
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remember back in june he held one for house speaker paul ryan. guys, back to you. >> thank you, josh. we'll see what well heeled executives are in attendance to that fundraiser. today marks five years to the date tim cook took over as chief executive at apple. i want to start with the politic, though, because josh just reported tim cook want as friend in white house should clinton get elected. shouldn't an executive of a publicly traded company want a friend in the white house either way? >> probably. there's also an under lying fear in silicone valley what if, god forbid, donald trump wins. at the worst case it's the end of the world but it could also severely impact immigration policy and we really want immigration. >> we just saw josh lay out some of clinton's policies that tech as a sector is a fan of. we have seen tim cook, though, take up social causes as an executive. do you think political causes
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should be treated differently than social causes? >> probably. for those kind of financial reasons, yes. but, still, you know, the thing is so closely tied, right. so tim cook is a person. he has his own particular, you know, characteristics and he supports probably more of a liberal stance. you know more power to him. >> on the five year anniversary -- john, go ahead. >> guy, is there a danger here? apple has got some clear connections to hillary clinton in that al gore is on the board. served as bill clinton's vice president. lisa jackson who heads policy over at apple, i believe was at the epa heading that under the obama administration at the same time that hillary clinton was secretary of state. i mean, clearly cook has some cover in the fact he did the fundraiser for paul ryan earlier but that's a lot of connection to the democratic side of the
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aisle. is there a down side there given apple's broad reach across the u.s., all kinds of customer, global reach as well. >> well i suppose donald trump could become president and make the united states standardize on android, but both of those things seem unlikely. i think the reason is deeper than simply financial access and those kinds of things. apple was born in silicon valley. we have a liberal attitude here about openness and transparency and supporting immigration and we want all these kinds of things, alternate life styles, alternate perspectives and that seems to be the antithesis of the other party. it's not just finance and access. it's really in our dna, in our entire perspective on life. >> before we move on, guy, we would like to get your thoughts on tim cook five years in. u.bs gives him a b plus. what would you give him? >> he did create, arguably the
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most value company in the world. he didn't create it. obviously there was steve jobs. but he definitely took to it the next level. you have to give him a grade for that. he followed a very tough act. who among us would want to follow steve jobs. so there's some talk s-it as innovative as before? i think that's a legitimate concern. but all things considered, the numbers don't lie. he has delivered. >> the stock is up at more than 100% since then. tesla, meanwhile, guy, getting an upgrade yesterday. the ceo elon musk announcing new versions of the sedan both with substantially faster acceleration and batter life longer. the fastest production car in the world. there was a joke yesterday that the whole event was just doing a favor for reporters that cover tesla. darker news here in august. i wonder if you think this is
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important. >> first of all, i'm totally conflicted because i'm a mercedes-benz brand ambassador. having said that going from 0 to 60 for under $200,000 is quite an accomplishment. >> the fact that it can go from 0 to 60 and shade half a second off acceleration. do you think that the company should be putting its focus there when it has some production in delivery issues already or is it important for an innovative company to keep innovating. >> it's important for an innovative company to keep innovating. that's a mind-boggling number, 2.5 seconds. that's an accomplishment. >> guy, it's interesting the pace of tesla's announcement. there's a question is this really a huge deal or is it incremental. we're not used to getting a lot of incremental announcements out of a car company. there's this plodding pace that tends to be announcements out of
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car companies. this is more of a software pace, here's something you can download, here's a tweak to a model of car that's already out. is that the future? the broader auto industry paying attention to that? >> i would assume so. and, tesla is a car company that happens to be in silicone valley. that's a very different place. very different psyche. look at the history, personal history of elon musk. right now elon musk is the closest thing we have to steve jobs. i think you can expect this kind of behavior. >> we didn't even get to the fact he's buying bonds of solar city. for now guy kawasaki always appreciate your perspective. checking in on the markets, right now dow seeing some weakness, 38 points to the down side. watching shares of fit bit. u.s. trade group ruling the company did not steal jaw bones trade secrets or employees in the hopes of stealing
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confidential information. lay z boy with a crop in same store sales. when we come back, disaster overseas after a massive earthquake strikes central italy killing at least 70 now and injuring dozens more. we'll get some details when we come back. then from new subway cars to new free wi-fi hot spots, new york city is on the cutting-edge of metropolitan innovation. then later sony's virtual reality chief will tell us what works and what doesn't work in vr.
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morning. nearly 80 people are dead. dozens more injured and missing after a massive earthquake and be a series of after shocks struck central italy. bill neely has the latest details. >> reporter: yes, hello. you join me in one of the three towns that were shaken by this earthquake and this one it seems is the hardest hit. it's at least civil protection agency announced the death toll has risen once again. it is now 73 and rising with dozens missing and hundreds
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injured. this time has borne the brunt of that death toll at least half of those people were in this town. right behind me, you can see a number of things. you can see rescue workers just going away from having been up at the very center of everything. here behind me you can see a residential building that was maybe three stories high. huge chunks of concrete. one thing i don't see is really any sign of life. there's no furniture, there's no bed, crucially there's no people. it's all been engulfed by the concrete that surrounded it. if was a big quake. 6.2 on the rector scale and several dozen after shocks. there's hamlet, village, isolated communities some cut off because the roads are blocked and authorities want to get some -- >> that's bill neely in italy a
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story we'll don't watch the death toll has risen. in the meantime back home more from more free wi-fi hot spots. new york city is at the cutting-edge of digitization and soon a new chief digital officer. he joins us here now. it's good to see you. congratulations. >> thank you. >> i'm fascinated by the gig. what it entails. being a tech friendly city even means these days. >> the mayor, bill de blasio tweeted out we'll make new york city the most tech friendly, most transparent and most digitally equitable city in the world. what it means is how do we help our 300,000 new york city employee, 8 million residents, 4 million people who commute and 55 million who visit the city every year, every time they come to the city how do we make it
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easier and less painful. >> metrics. what's one you want to elevate >> we want to make sure there are fewer complaints in the way they interact with the city. my predecessor made a, with the mayor's office made a digital ply book. it talks about what is it that the city needs to do in terms of making it more friendly, being in touch with the city with our residents more, reach out with them, test with residents, communicate more simply. a lot of that is something i think cities around the world are all going to learn from each other and i'm excited about that. >> what does that second phase look like? most cities are used to having their transportation maps digitized, getting texts in the alert of a flash flood or something like that and having wi-fi readily available. how do you go beyond that >> you want to make sure all those process work really well. right now new york city is unrolling or rolling out link
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nyc which has 10,000 hot spots the world's fastest wi-fi free on the streets of new york and there's coverage of that. what does that mean when it reaches every borough and everyone in new york, how they interact not just with city information but career information, job hunting, things like that? i think it will be a big difference. >> john? >> if i'm counting this right, this is about the five year anniversary of this position existing. correct me if i'm wrong there. if i recall, initially there was a big focus on tech start ups and businesses themselves in new york, promoting new york as a place to invest if you're looking to grow tech businesses. now it sound as bit more like a focus on connecting the government with the citizenry. which, of course, was always in there as well. i'm wondering in the de blasio administration has the focus shifted somewhat one way or the other? >> i think we're absolutely going focus on the thing that we've talked about connecting with the citizens built also
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think about how to make new york city the most accessible place for start ups to move here, start here, and thrive here. part of my job is reaching out to start ups, connecting with them and hearing from them, what are the things they are looking for. one way i look at it, if you remember the social network there's a moment in the movie whether they decide whether they should be in new york or silicone valley. in 2016, 2017 we want them to stay here. >> question on social. i took my kids to broyer. what's the most potent platform, in your view right now? >> i think that we are looking at a couple of different platforms for folks, depends on what they are doing. in terms of connecting with information and news certainly twitter. connecting with friends, family, it's facebook. but if you're connecting with younger people, instagram and snapchat and trying to learn how
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we can use theels and not all of us are on all the tools but finding the right way to do it. identify just come back from india how i watched how government of india is interact. if you tweet at the foreign minister and you say my passport has been lost, she will teeth back wane few minutes and have someone working on with it you. it doesn't work all the time. but an indication of how people are thinking in the railway system in india which is huge and very complicated and problematic. can you tweet and somebody will respond to you within five minutes with some kind of information about what you're looking for. so other countries are doing interesting things. we have to learn from them and they have to learn from us. >> you got to come back. progress reports on how you're doing and your overall thoughts on tech and social. good to see you. congratulations again. when we come back sony developing the next generation of virtual and music tech. we'll speak with the mastermind
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behind that operation. and we'll find out which names mark hainey is looking at in the fall.
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welcome back to "squawk alley". virtual reality content and hardware is making its way to consumers. what works and what doesn't work in the virtual world? richard marks is a senior researcher and engineer for sony magic lab and r and d. thanks for joining us, richard. so, this is probably going be the first significant holiday season the way i see it for virtual reality. sony is in a really interesting position in that people who got a playstation are going to be able to access that. what your expecting is going to be the most popular experience, the thing that people are gathering around, whether it's
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the christmas tree, whatever, putting this thing on and experiencing? >> there's a large number of different experiences. there's 50 that's available during the launch window and i think that there's something that will appeal tomb. there's a piece that comes with it called the play room vr so it's free, comes with the head set and that's a social kind of experience where you can play where one person is in the vr and other people can play with you on the couch. that's one of the christmas hits. >> that's an interesting experience. i was thinking, i was checking that out when i last talked with you in new york and you were showing some of the experiences. what's different about this is only one person is going to have this on at a time unlike games, some of us remember when we were unpacking the first nes, nintendo entertainment system and you could play against somebody and that was so exciting. is it going to be a problem that a lot of vr experiences lack that? >> there are experiences that
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are networks so can you play against somebody like people do now in online games. there are some things we call them asymmetry vr. there are several of those coming. you can still play together and pass the head set around. >> any lessons from pokemon go. very different from this but became a event known over the summer. >> great to see people playing together like that and seeing kind of adults and children kind of mixing together. and i think with the vr it's different because it's so immersive. that was face out into the world. with vr you create a whole new world around you. very different thing not really easy to compare. but the technologies overlap. >> do you see entrepreneurial activities here when smartphones first took off and we had app stores there was a real boom in the ability to create a new type
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of game, a new type of content. granted the adoption curve for vr is probably not going to be quite that fast. but for those who are entrepreneurially minded is there a type of content that they can create that people ought to be thinking about that perhaps could become popular and people would be willing to pony up cash for? >> with our company, games is what we're leading with, playstation. we already have the playstation store where you can go and get content. a lot of developers are working on creating experiences that can be downloaded. at the beginning you'll see mostly games but into the next year you'll see more things that go into areas that are not completely games. >> like 360-degree video content? that's easier for somebody who maybe isn't a game studio, to get the investment to create, right? >> definitely 360 video will be some of the things. also things that are teaching you about like nasa is doing some experiences and there's a lot of educational experiences
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that are coming let you feel like you're in ancient history world, ancient egypt, let you visit it. it will be a big hit for vr in the future. >> be very interesting to see how this category evolves. coming up, mark hainey stops by with his take on state of tech. later, why landing a job at google in just 15 weeks is no problem for these coders. more "squawk alley" when we comes back. [announcer] is it a force of nature? or a sales event? the summer of audi sales event is here. get up to a $5,000 bonus on select audi models.
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good morning, once again. i'm sue herrera. joe biden is holding a press conference with the prime minister of turkey. north korea launching a missile towards the sea of japan, protesting a tri-lateral meeting of foreign ministers and u.s.-south korea military exercises. the submarine launch ballistic missile traveled about 300 miles before plummeting into the ocean. two bombs exploded near a hotel in southern thailand overnight killing one employee and wound go 29 others. those explosions damaged several rooms, ignited fires and blew away the hotel's facade. pope francis leading pilgrims in prayer for victims
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of earthquake that rocked central italy earlier this morning. he said he was stunned by the devastation of the 6.2 tremor that has killed 73 people. we'll continue to follow that story all day. that's our cnbc news update for this hour. back downtown to "squawk alley". carl, back to you. europe is closing as we speak. >> reporter: europe's broader markets modestly higher in today's session as a surge in banking stocks are offsetting the weakness we're seeing in the commodity space. among the banks participating in this sector's rally, commerzbank, ubs, deutch bank. keep in mind all these stocks are down 15% year-to-date, the big challenge, of course, continues to be negative rates. switch over to uk advertising giant reporting upbeat earnings, sales were helped by the weakness in the pound yet another example of how the spill over effect of the brexit may be
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contained for now. shares of wpp hitting a record high. let's talk minors. glenco glencore, detailed a $400 million hedging loss. they plan to cut debt and rebuild its financial position. some of the other miners weighing in today's trade. german chancellor angela merkel continues her tour across europe currently in estonia where she said it's important for germany to listen to other countries after the brerkt vote and the other countries must be judicious. this is another example of merkel's attempt to you night the now 27 member bloc and instill confidence into citizens. it comes ahead of the eu summit in september which will be the first leader meeting without the united kingdom.
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john, back to you. >> thanks. the nasdaq is coming off all time highs as tech companies don't drive this ally so how should investors play the tech sector? joining us here at 1 market is mark mahaney. mark, thanks for being with us. so you're excited about google and expedia. why expedia? >> we still like the travel space. two ways to play this. priceline and expedia both performed well. this year expedia underperformed. now trading at a reasonable discount to priceline. finally they are going through this integration of home away, the asset they acquired last year. our sense is that integration is going well. if they can come out of this process that's a third reason to buy the stock. >> google has had a really nice run. ruth seems to have been very
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good for the company. clarified a lot of things about the core business. why do you still like it? >> to her immense credit she provided greater disclosure, she bought back stock and been managing expenses better than the prior cfos did. why we like it here is we think the market is too pessimistic about the back half of the year. there's a dehe isleration debate on google and facebook and a certainty that growth rates have to decelerate sharply. we don't think that's the case. there's a lot of initiatives that the company laid out. we're starting to see mobile cbcs rise and other assets like youtube that are becoming more and more material. this sustains with expanding margins for the foreseeable future. >> is it a valuation argument for why you tend to like google better than facebook? >> it's also kind of a sentiment
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call. facebook has done phenomenally well last year, this year. there's very little debate on facebook. so it's partly -- look we like facebook. it's a reasonable buy for us. it doesn't set up as well we don't think for the back half of the year as google does. >> netflix, that's your big call. what gives you continued confidence in it given the subscriber numbers last quarter, gave people a queasy stomach. >> two quarters in a row where numbers have come in light. we think it's more temporary. one challenge this company has had, they had pricing push back. they announced price increases and led to some wavering. we think that's a solvable problem. how do you solve that problem? increase the value proposition of the service. our surveys over time have said original conextent an anticip e anticipatory anti-change user.
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as they bring you want more content and successful with it, it's popped up well. as they roll out more original contend we think they can get back to strong subgrowth. >> mark, one of the reasons tech has become so popular is because the dividend trade got very crowded and investors were looking for other safe places to put their money once the consumer staples and some of these other more defensive sectors got overvalued. anything you're seeing on the secular front that could take the wind out of tech again? >> no. not that we've seen. we've seen very consistent revenue growth at least from the leaders in the internet space. it's a have more have less space. what's good for google and facebook has not been good for the yahoo!s and twitters of the world. same thing in online retail too with amazon and e-bay. for the lead terrifies trends are very consistent. 18 straight quarters at 27% revenue growth for google, 15
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straight for amazon. some of these newer business, cloud executing particularly for amazon but may be increasing at the margin for google are exploding. they are reaching these tipping points in large companies including financial service firms are starting to embrace cloud computing. we think that growth very sustainable at premium levels for the foreseeable future. >> mark, we see amazon perhaps looking to expand its music offerings, we see apple being more aggressive in services as well, google has had design on the space as well. as far as netflix is concerned how likely is it they move into music or start leveraging and engage customer base to do more service wise online >> i don't think netflix will go into muff. one interesting question on netflix is generating advertising revenue. we don't think they will do that in the u.s. but maybe international markets where it's hard to get $10 subscription
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fees they could tap into other revenue streams. these massive platforms like amazon, google and apple, they get into music or video that means the pure plays, pandora, netflixs that's real competition information. of those three companies i most worry about amazon they have a gift for figuring out consumers. if you're going against them like netflix and pandora you have to focus on them more than anybody. >> they have done quite well. mark mahaney thanks for joining us. when we come back this morning why thousands of state of the union are enrolling in code camps instead of four year colleges to land six year salary in silicone valley. i'm watching the yield curve and we've done so many spots on the yield curve. i can't stress it's not just about all that traders think about it, it's what happens when short rates run higher than long
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buys up another asset. we'll make it sparkle on the "halftime report" at the top of the hour. sounds good. thanks. coding boot camps are becoming an attractive alternative for college kids looking for a cheaper and well paying jobs in the valley. there's one boot camp in san francisco. >> reporter: the students are starting to fill in this morning here in san francisco. they are going to spend the next 12 to 16 hours learning to code. this is just one of dozens of coding boot camps all across the country turning students into software engineers and many of these students are actually choosing these camps over going to college or even grad school. here's why. 98% of their grads land jobs at companies like google or facebook. average starting salary $105,000. tuition is close to $20,000. one tenth of what students pay
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to go to elite colleges. we talked to one student who knows this instead of going back to college because the coding program was cheaper with a bigger payoff. >> the curriculum that they were providing was transferrable skills. you know, directly into a job, directly into things i wanted to do. >> he actually says that he doubled his salary after doing the 12 week program and guys these are very selective programs. there's high demand for them. they say they get 500 applications every single month. they only take a quarter of those applicants. >> a great story. where our economy is going increasingly. thanks. let's get over to the cme group in chicago. check in with rick santelli and get the santelli exchange. >> good morning. listen, there's something that nobody can argue about, can you change the semantics to make it more palatable based on your
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perspective, how you look at markets, central bank, policy. in the end we have managed markets. short send managed insofar as rates held too low, too long in my opinion and the long end, teen middle of the curve, maybe the entire curve most of the long end whether it's quantitative easing, the notion that securities won't be traded, or the notion that the long end is going to act the way it used to. what am i getting at here? the reason that europe embarked on a even more strenuous effort to manage their markets might be one thing that everybody fears most that regulates or tries to manage markets and that's an invert curve. we could talk about drexel, southern economy, what do they have in common? when borrowing and surviving day-to-day, hour to hour,
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overnight to overnight repo, no matter how much real wealth a company or a country has, if you can't do the overnights, you can't survive. okay. i was in drexel. they had boat loads of assets but needed dough right now every day and couldn't get their hands interest. so an inverted curve is just another offshoot of a curve that has to first get flat before it inverts and i think a flattening curve is something important to talk about the. the problem managing markets if it was such a good thing all of our markets should be managed all the time. if things were really free we should make everything free. free like college for example if they didn't have to pay for buildings or electricity in the buildings or teachers that's free. that's not what happens. so i personally think flat is the way the curve will trade. his answer was well i think pricing pressures could keep the long end.
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my issue is, that when managed markets become unmanageable there's feedback loops. short rates will continue to rise because normalization is being priced in the marketplace. long end, maybe the relative value trading pressures of negative rates. but the problem is if we get pricing pressures, is that only going an long ♪ i don't think so. i think the feedback loops when markets get some freedom is going to spill out throughout the entire curve. so if you really want to pay attention to things that may turn into black swans flat leading into inversion is probably the thing that nobody wants to see and the problem is you can't look at enhanced markets and apply logic. managed markets are not real markets and that's a problem, in my opinion. kayla, back to you. >> thanks so much, rick santelli in chicago.
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still to come how one company is helping uber drivers better land for their retirement. then no independence here. why facebook wants to categorize all of its users based on their politics. dow is down 50 and we'll be right back.
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uber and lyft derives are contract employees which means benefits have been inaccessible but our next guest is trying to change that. betterment is announcing a
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partnership with uber today which makes it easy for drivers to open iras for retirement. welcome. >> thank you. >> how did this come about and why target the drivers specifically? >> well uber has been looking for a way to better serve their drivers, looking for a way to take care of their financial wellness. we started talking several months ago and decided we could make iras available, right within the uber driver app and we got to work on a partnership. >> fees will be waived for the first year. drivers won't be charged any fees so long as they make a dpoe it is of $100 a month. uber will pick up those fees and then what? >> we're actually making the betterment account available to all uber drivers for free for their first year. sooits great program for all uber drivers and we have worked with uber, both betterment and uber have put resources towards
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this program to make that free offering for the first year. >> what financial condition are drivers in? >> they are looking for a retirement solution like all workers. that access to a really high quality, higher resolution not available for them. that's a great savings and retirement solution for independent workers. and the solution here is, integrated within think existing work flow. >> and wondering whether or not they are going into the program with any retirement savings at all or if you're accelerating what they've already put aside? >> generally, the studies say one-third of american workers don't have any retirement savings. like most americans, time to get started. >> jon? >> what happens to these accounts if drivers stop driving for ooper? how important for these accounts to be obviously portable to them? how does the signup process work? >> sure. so you can sign up, manage and monitor your account from within
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the uber driver app, but any betterman customer, drivers have to have access to their betterment accounts, directed to betterment. if they move on, doing other things in their working life can always come to betterment to manage accounts and continue to deposit towards them. >> as betterment expands, how much easier to go to uber or 1099 employees for whom these types of retirement haven't existed, rooi rather thather th from companies like our parent company? >> uber presents a unique opportunity given their prominence in the space, the large workforce, our ability to scale up a large number of drivers. that's a unique opportunity for the most part. our work with companies is focused on 401(k)s through our betterment for business offering offering 401(k) plans to over 200 companies. >> do you work with uber the
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company for its own employees? >> we don't presently, but a lot of the betterment employees at uber, the uber headquarters employees have betterment accounts. part of the reason they came to us. they used betterment already and are excited about the product. >> interesting how it ties into the criticism of the sharing economy. right? politicians and others said this is a dangerous new era. the safety nets are gone. but you're seeing private players like yourself try to come in and answer that need? >> exactly. there was a statement that senator warner from virginia put out just this morning applauding this program, and the point of that is, that the economy is changing. this isn't the 20th century. we need 21st century solutions and he's looking at this as an innovative solution. the way people are employed and work is changing. we still need to provide for retirements. >> is what you're doing with uber more of a trial to see if something like this works or could you see extending something like this to airbnb,
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and others? >> i think uber is really, has its own unique place in this space. we want to focus on working with companies of all sorts, whether those are companies that have independent contractors or its company whose have direct employees. >> why do you say uber is special? just because of the scale? >> yes. uber, it's really the preeminent technology story of the last five years. incredible honor to have the opportunity to work with them. >> we hear it from everybody, bankers, and investors and now the insurance companies. and facebook wants you to know how you can lean politically to show you the right ads. meantime, close to session lows. dow's down almost 50 points. back in a minute. announcer: alvin and the chipmunks want to remind you--
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bacteria can hide in food and make you ill. wow! announcer: but you can keep bacteria from ruining your day with 4 simple steps: clean, separate, cook, and chill. the roadchip to food safety starts at foodsafety.gov. facebook already knows your political views, even if you don't tell them. the world's largest social media network automatically characterizing you as liberal, conservative or moderate on the pages they'd like. a fan of ben & jerry's page, labeled liberal. for the nra, tags you conservative. opt out of the label in the
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preferences section, but it is yet another way, kayla and jon, the platform is trying to figure out who you are. top bottom. >> and jon, for facebook, said its pages are apolitical, this, perhaps, comes as a little surprise. >> yeah. i mean, maybe you don't know how you lean politically. you can go and find out. sometimes it's kind of scary. technology knows more about us than we know ourselves. >> at the same time, news today, jon, that the ad network over there is testing out a new type of technology called heter bidding, in which, various entities compete against each other for space, but, although the stock has not been on fire at it was earlier in the year, certainly the evolution of their ad network continues. >> it's such a powerful trove of information they have. not only about what people themselves tend to do bhaut wha
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they're friends tend to do. an ad market, premium is going to the data. google has it, facebook has it. others trail behind and facebook has such volume they're able to innovate on top of that data and figure ways to get more bang for the buck for themselves. the danger is that eventually advertisers might end up paying more than they're comfortable with to reach the audience. facebook seems to be disciplined making sure they don't get too far in front of their skis as far a that goes, carl. >> thinking what barron said earlier in the week, potential for 20% upside. asking the question, can facebook handle 20% more ad load? perhaps it can if it gets more creative and developing new products? >> barrons, too expensive in the 20s, revising thesis on facebook. we said earlier, dow session lows down 49 points. 2193 ended up being firm resistance. tried it twice and have been denied. at 2181.
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putting a little more space between here and there, but a lot of this has to do with expectations to what yellen says friday. >> and a little bit more volatility in the market. perhaps because we are operating at lower volume. volume's about
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