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tv   Squawk Alley  CNBC  October 27, 2016 11:00am-12:01pm EDT

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good morning. it is 8:00 a.m. at twitter headquarters in san francisco. it's 11:00 a.m. on wall street, and "squawk alley" is live. ♪ welcome to "squawk alley." henry, good morning to you. >> good morning. >> busy morning.
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the banks and the ten-year breaking out but we start with twit they are morning, moving higher, posting its ninth straight quarter of slowing sales growth and announcing it will cut 9% of its workforce, about 350 people. top of the bottom line results did come in bovis mates and the service adds 4 million monthly active users. jack dorsey on the conference call earlier this morning. >> we're focused on building the most useful, open, and co comprehensive news network on the planet. this is the fastest way to see what's happening. our product is already revolutionary and we're focused on improving it every sing dale. we've been making hundreds of small changes as quickly as we can that will continue to compound in more usage. >> how do we divide the conversation between evolutionary, revolutionary in terms of the core business and the m&a, which he just refused to answer?
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>> jack dorsey said extremely important. that is the first time i've heard twitter recognize what it is, which is a news and live events network. incredibly strong in that. look at all of us. we're all addicted to twitter. it is a much smaller niche of people than twitter originally thought it was going after. they said we're going to be another facebook, this huge mass market colossal thing when in fact they are a news and live events network, but they're already good at that, and with small evolutionary tweaks, not revolutionary, they can be great at it. that is worth a fair bit of money. i think the sentiment has gotten too negative. >> do they want to be valued like a news network? i'm not saying news networks are a bad business but they're not often seen as a growth business technology-wise. the words you choose, i think, are important. if they're going to call themselves a news network, if they're saying that's a category that they're disrupting, don't
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they have to do something really revolutionary and grow? i think they already have done something revolutionary. the big opportunity for them to grow is video. they've just started to roll it out. i will suggest to you that in a year or two twitter will be an incredibly important distribution platform for cnbc. and they will be able to monetize it very effectively. so, again, the value ligs, it's not cheap by any means here. we're talking about a $13 billion valuation, a company with no content costs, just a distributor. if they can right size their cost structure, which they have a lot of work to do still and 9% probably will not get them there, you can see earnings, $500 million, a billion dollars in a few years, okay, then the valuation is reasonable. >> we've seen companies like jpmorgan last quarter releasing their earnings on twiter, business wire utilizing twitter more. if it is a news network and a distribution platform, how much of the innards of the product need to be completely retooled? if they're not trying to go after main street and your mom
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and your brother. >> this is the point. very little. what they need to do is a couple things. they need to get rid of the troll problem. it is still unpleasant to use for a lot of the big contributors. jim cramer talks a lot about this. this is a relatively easy fix, i think. the ore thing they need to do, they need to make it easier for people who aren't really technically savvy and they need to make them think, hey, i need to find out what's happening in the world, i just open twitter and it's super easy. that's not hard either. all they need to do is get folks in the product organization who think like normal people instead of silicon valley genius engineer who is often think in a different way. >> fascinating, the evolution of this story. far 10-year-old company, you forget how long they've been around. >> they still own something that nobody else owns. you try to switch, say i'm going to go to linked-in for my news or facebook, you get a little of it but it's not the live news that twitter is. twitter needs to accept that,
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double down on it, and make it great. >> is that a problem, though, if it disappeared tomorrow, somebody would re-create it instantly? would it be that easy? >> no. it would take some time. you'd have some of the bigger players vying for it but right now they're fending everybody off. >> if they became a pay service, how much would you pay to have it at your fingerprints for a year? >> i think it's highly unlikely that would happen. >> just theoretically, hypothetically. >> how much would i pay? i don't know. i would see what else is out there. but i don't see that. people don't pay for news. news is everywhere now, general news. maybe niche news people will pay for, it's important to their profession or something they can't get anywhere else, twitter doesn't need to pay -- this is a company that's already about a $3 billion run rate with no costs. you can make a business out of that. you just have to right size everything and embrace what you are. >> another earnings winner this morning is tesla, a surprise profit, $22 million, thanks to record sales of the s and the x. it's the second ever quarterly profit in the company's history
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as a public concern and they promise to raise annual production to half a million in 2018 from about 50,000 last year. musk on the conference call last night. >> a bigger picture that we're designing the program to be a cash generator. the stronger our cash position. >> so this is another curious one today. $3 billion in cash. trimming their cap ex, saying they don't necessarily need to raise money anytime soon. >> trimming their cap exfor a quarter. >> yes. >> using some nice credit to, quote, throw a pie in the face of skeptics, which is great. elon mus sk a marvelous salesman, incredible entrepreneur, all power to him, but they're pretty much obviously going to need cash again. basically, the scenario i described is everything grows perfectly we might not need cash but we want to raise it because otherwise we'll be inches of going bankrupt, not a place you
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want to be. so of course they're going to raise cash. and i'm sorry, solar city? it still doesn't make any sense. it is hard to build a global car company. why are you saddling yourself with a company that puts solar panels on people's roofs? >> the solar city vote takes place on november 18th so they had to put up a profit this quarter on selling investors voting into it, but does elon musk need to send more e-mails to rally the troops? remember september 2nd he sent that e-mail saying we're on the razor's edge of profitability. wouldn't it be great to see the headline not saying tesla loses money again? let's do this for our investors. he has the power to do that. >> absolutely, and that's good. but to ramp up to the kind of production they're talking about in terms of cars per year, just huge capital investments have to be made. and that has been part of this story from the beginning is that each time we think we've got on the a place where, okay, they're fully funded, it's billion ls of
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dollars more have to go into the company. it doesn't mean it's worthless, it won't work, but it does mean likely a lot more capital goes into it and a lot more distraction. focus works. and they are about to defocus in a major way. >> going to add to his plate. qualcomm buying nxp. the biggest chip deal in history. nx spshgs the number-one maker of chips for cars in the world. take a listen. >> if you look at the larger context of what's happening in the industry, the car and the internet of things, the technology roadmap and amount of technology and technological hang chaipg will occur in both industries reminds me of what the smartphone looked like before there was a smartphone. everybody was trying to figure out how do you assemble all the assets to be successful in that huge transition.
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that imsaim thing will happen in automotive and we're happy to have the big pieces to be able to drive it. >> coming on the heels of a major apple unveiling later today delaying the release of its air pod headphones. samsung rho reporting the lowest operating net in two years. nxp, qualcomm, a big deal. >> three times the size of intel's/altera deal. i'm going to kind of put my bet down and say this has the potential to be the most important technology deal of the decade. and the reason why i say that, it's similar to oracle/peoplesoft back in the 2000s where larry allison made this bet on consolidation and enterprise software and named it a hostile bid. this isn't hostile. this is qualcomm, won in the smartphone chip architecturarch trying to extend that into the internet of things, specifically into cars. intel tried this with the pc
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into the phone and failed. qualcomm beat them there. this is qualcomm trying to beat all other comers into this internet of thing, opportunity, into kind of this network planet. if this deal works, it positions qualcomm to extend its dominance the way the likes of google and amazon had from original web kind of into the cloud era. the chip folks have had trouble doing that in the past, but it has that potential. so this is one to watch to see where the entire industry is going. >> agreed. i think very rare to have a tech ceo possibly understate an opportunity, but suggesting that chips in things could be bigger than smartphones, highly likely it is way bigger than smartphones in terms of chips in everything. zillions of chips in a car and all around your house and so forth. there is a massive opportunity there. >> any regulatory risk? the stock's trading about 10% below the deal price.
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>> jon? >> one of the questions i was asking steve and george, cfo, you see what oracle is going through trying to get net sweep. what's the complication here? the fact that the nxp is trading below the offer, i don't know if that indicating anything regulatory. they're getting to use overseas cash here. i don't see it as being, you know, overly difficult, but qualcomm has had a lot of trouble regulatory-wise in various jurisdictions, asia, specifically, all kinds of issues that different jurisdictions could raise. maybe that has something to do with it. i really don't know. >> i saw a list of the top 20 media telecom deals of all time. six were canceled after subsequent to being announced. we're in an era where now -- >> skepticism around at&t. same thing. huge. >> this is another vertical integration play, but it's the kind that people don't feel like they understand, so maybe those are easier to get through.
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if you're not paying a cable bill or a wireless bill to that company, you're like, qualcomm, nxp, sure, go for it. >> henry blodget, great to see you. ? thank you. >> we are going to check in on the markets. the dow has gone positive, ibm and dupont helping to cancel out negative weighting from boeing this morning. s&p still negative as is the nasdaq, eyeing their third straight decline for those two industries. we'll keep an eye on that. shares of groupon under pressure, posting a quarterly loss of $38 million or about 7 cents a share, but that's not the biggest news. it's buying onetime rival living social, which was once worth $6 billion buh-bying it for an amount it doesn't eve haven't to disclose. watching financials, barclays and deutsche bank beating analyst estimates and bark clays rising sharply. deutsche bank's ceo promising to speed up restructuring efforts but it is still bracing for that multibillion-dollar fine from u.s. officials. it added about $550 million to
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reserves saving up for that. >> when we come back, at&t's bid to buy time warner facing that uphill battle on capitol hill. senator richard blouumenthal isn the antitrust committee. he'll join us. and we caught up with ken burns. we'll hear his take on everything from steve jobs to donald trump. and more of sara eisen's exclusive with david taylor. dow almost perfectly flat. "squawk alley" continues in a moment. vo: sitting at a desk all day can cause neck and back pain, high blood pressure, it even slows your ability to burn calories and lose weight. man #1: fortunately, there's a solution; inmovement, the affordable standing desk. woman #1: an inmovement standing desk lets you move effortlessly between standing and sitting throughout your day. woman #2: inmovement standing desks come fully assembled and fit right on top of your existing desk. man #1: inmovement standing desks are height-adjustable. woman #2: and, unlike many standing desks, inmovement desks come in a variety of colors.
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welcome back to "squawk alley." the chair of the u.s. federal communications commission declining to say whether he thinks the agency will review at&t's proposed purchase of time warner. take a listen. >> this is one where the nature of this deal is unique. it's a vertical integration. it's a big merger but it's a vertical integration. as you think about the areas that have been really contentious over the last few years in our industry and jeff's industry, they've been horizontal mergers where the government was concerned about a competitor being taken out of the marketplace. that this has none of that. we compete nowhere. >> the fcc comments were not televised. that was at&t chairman and ceo randall stevenson on "squawk box" earlier this week. richard blumenthal, a member of
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the committee investigating the deal and former attorney general of connecticut. we just heard randall stevenson say we compete nowhere. if that's the case, how do you expect the antitrust committee's review to proceed? >> i think there will be a hearing and very rigorous scrutiny by the antitrust subcommittee of the judiciary committee, which i sit on. and i think that fcc review is appropriate too. this merger deserves very rigorous scrutiny. it raises alarm bells because it is a vertical integration with potential impacts on competitors. it may not be taking out a competitor, but it may severely constrain competition and harm consumers. >> the past precedent, though, would have been comcast's purchase of nbcuniversal. of course, both of those are cnbc parent companies, but in that situation, senator, there
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were limits that were placed on the company by the government in order to get the merger through. do you think that's an appropriates predent and could you see the at&t deal going through the same review? >> very good question. one of the key questions here is whether those conditions have really worked. the danger is that a company like at&t, if merged with time warner, could leverage content to restrict distribution by other competitors or raise prices. and even cut the supply of certain content from time warner. and so the question with respect to the comcast/nbc merger is whether the conditions placed there are really working. and more generally, whether conditions can be sufficiently enforced or policed so that they really make sense for the companies as well as for consumers. they are very, very serious questions here that have to be
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answered about potential impacts on competition and consumers from this gargantuan merger. and it is a different merger that that previous bun. >> senator, are we reinventing the definition of antitrust here? i mean, i understand that there are a lot of people right now who don't like big companies and the prospect of big companies getting together. scares them. but how is this an antitrust issue? you say there's the potential to restrict competition. there's tallas potential for it to enhance competition. is there not sometimes when one big xaenl incompany integrates vertically, apple going into chips after buying a semiconductor company, for example? you get more computing choices, end up with the iphone, which competes with pcs, an ipad that arguably couldn't have existed if they hadn't done that. what is the antitrust standard given wireless is a competitive industry, content is as competitive asitis been in a long time? what standard do you apply? >> the merger here is very
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different from nbc and comcast in this respect -- it involves wireless. it's a national platform. and it involves more than just one platform. there are several platforms. whereas comcast and nbc really involved one platform and it was limited to certain parts of the country. so the dimensions here, the magnitude, is very different. and the potential imp lications for competition, negative harm to consumers are very different. these mergers are always just y justified by potential promises of benefit, the unknown technology. and i've heard that promise of potential before. we all heard it, on the airline mergers, not really all that beneficial for consumers. a lot of those promises have proved to be unfounded. so rigorous scrutiny is well founded here. >> senator, when did the
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antitrust lines politically get blurred? because conventional wisdom would tell you that the republicans would want less government, less regulatory involvement, they would want to let companies do their thing, and that it would be the left that would actually have the heaviest hand in something like this. but we're seeing everyone from republican senator david purdue, who sits on this committee with you, saying that it's important to maintain a level playing field to the candidate for president donald trump saying it should be outright blocked. when did this happen? how did we get here? >> consumer protection and antitrust enforcement never has been and never should be a partisan issue. to go back to the question of standards, antitrust standards will evolve as business and markets involve. now we have vertical integration, which raises questions about the standard that should be applied there. and the antitrust department of the department of justice is going to have to answer some of
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those questions. here's what's important. the s.e.c. should be involved because there is a public interest standard that should be involved here, and there is nothing partisan or should be about the public interest. does it do any good for consumers? does this merger result in positive gain? that's the standard that should be applied under the federal communications review. >> all of us sitting here are just armchair antitrust attorneys so we'll leave it in the hands of the government. we appreciate your time, senator richard blumenthal. >> thank you. >> we are watching shares of twitter, up about 22 cents. jack dorsey says the board is committed to maximizing shareholder value. we'll talk about that next. plus, we sat down with legendary documentary filmmaker ken burns in our latest episode of
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"binge." a sneak peek of that after the break. >> binge-watching is an interesting thing and i think it's us trying to control our own environment. ♪
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the movie and documentary business has changed a lot since ken burns started making films more than 30 years ago. for "binge," we asked him if things like smartphones are a good or bad thing for business. here's what he told us. >> this instant documentation of events on phones, that we see in news all the time. >> mm-hmm. yes. >> positive or neg fif. >> hugely positive. we just can't mistake everybody for a filmmaker, right? because telling a story is not getting something like that. it's putting together shot after
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shot after shot and sustaining your attention for an awfully long time. that's hugely difficult. what it is is raw material for us. >> the issue will be curation. >> absolutely right. there is a huge danger. i do not want to discount this. we are using fewer and fewer words. in an age where you're omg'ing and lol'ing, you've contracteded your vocabulary, which is a terrible thing. >> that contraction of language is that what you mean when you say mobile devices are evil or suck the lifeblood out of us? >> there is an aspect of them that's evil. they do suck -- if we allow them to control us, i'll tell you what, i'm showing this film last night at the holocaust museum, filled with survivors of the holocaust. as i looked, the person next to me could not keep the sfoenl off for even a half an hour. >> you can find our full interview with ken burns on cnbc
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dot bo cnbc.c cnbc.com/binge. also apple tv and hulu. i don't think this will do anything to reverse our contraction of language and use of these things anytime soon. >> nor do i think he's going to go out of business. we don't have enough memory on our phones to shoot a ten-hour miniseries to compete with him. >> i remember when it was tv that was the thing that was causing all this distraction, but now catching ken burns documentary is the high culture. >> what's amazing, though, is he continues to draw tens of millions of viewers to his ten-hour projects. he's booked i think through the year 2030 in terms of product n production. he's doing country music, vietnam. he is cutting through, slicing through this sort of contraction of attention spans, at least among americans. we'll see if it continues to work. but fascinating talking to him. we'll count down to the close in the uk and across europe. seema mody is back at hq as the markets are stuck near the flat line. >> a mixed session in europe as market there are digesting
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everything out of china which showed a sharp slowdown in industrial profit growth. an extended sell-off in eurozone government bond yields on the prospect of more hawkish polities and tighter rates. we told you about that report that says the european central bank may limit the amount of bonds it purchases if the economic data out of europe continues to improve. some investors seem to be pricing in that tail risk. the ten-year german yield now at its highest level since may 31st of 2016. yields also rising in italy and france. bank earnings also in the spotlight. barclays leading uk lenders higher after posting a quarterly earnings helped by an uptick in bond trading. deutsche bank posting a surprise profit despite what it calls a tough environment. the lender also setting aside money for litigation costs as it tries to reach a settlement with the doj. shares higher by about half a percent. foster-wheeler, that's one of today's biggest losers, down about 20% after the oil service
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company said it continues to see weakness in key marks. again, a big laggard in european trade. finally, the uk economy growing faster than economists expected at 0.5%. in the three months after the brexit vote, which resulted in the pound, the uk currency, losing 17% against the u.s. dollar, some say, though, it's still too early to assess the damage of the brexit as it hasn't officially happened and once those trade deals get renegotiated, only then will we see the true impact. jon? >> all right. thank you, seema. still to come, disney, alphabet and sales force all walking away from the table when it comes to a deal for twitter. what's next for jack dorsey and company? we'll dig into that next. and later more of sara eisen's sitdown with david taylor, approaching his one-year anniversary that job. his take on advertising and social media when "squawk alley" returns. t?
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sharing a ten by ten room,ng threestruggling.nding,
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i rent this place and then i started home sharing. my roommates help out all the time. they are glad to meet the guests and that opportunity that airbnb has given me is such a priceless gift. i was able to take three months off to take car of my family during a family tragedy. the extra income that i get from airbnb has been a huge impact in my life. hello, everyone. i'm sue herera. here is your cnbc news update at this hour. the federal communications commission is rolling out new rules aimed at protecting consumers. the change will force companies like at&t, verizon, and our parent company, comcast, to ask customers' permission before using their information in advertising or marketing. a big bust over phony irs phone call finance justice department says it's charged 61 people for scamming over $300 million from
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consumers. the group used call centers in india, having the callers pose as irs agents who demanded money from victims. in some cases, threatening arrest or deor the anticipation. -- deportation. looking for a company with great perks? glass door is out with the highest rated companies for vacation and paid time off. topping the list is biotech firm amgen as well as ikea and google. and maybe this guy was just hungry? well, he's being followed by the police, but the man behind this pickup truck made a pit stop at the drive-through. he was later arrested by authorities. you're up to date. that's the news update this hour. back downtown to "squawk alley." jon, over the to you. ? thanks, sue. twitter topping estimates in its first earnings report since acquisition interest in the company reportedly fell flat beating on the top and bottom line, jack dorsey cited optimistic about the company's video streaming potential. take a listen. >> we see people watch tv with twitter for ten years and
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comment about it, which makes whatever they're watching a lot more interesting, a lot more entertaining, and a lot more insightful. and we're looking at that and trying to remove friction in every way that we can. and that's what the live streaming initiative is about. >> all right. let's parse dorsey's comments and twitter's earnings. we're joined by a couple internet analysts. good morning. >> good morning. >> neil, when twitter's earnings are bad, that matters. not just because of acquisition rumors but also just because of the growth that folks want to see. do these positive results matter as much as bad results matter? >> it's a good first step in the right direction but it's one quarter. we're still skeptical they can turn the business around. some of the underlying trends in
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terms of dau, engagement increasing, acceleration, seems positive but hasn't transferred to real revenue growth on the advertising side. i think there could be a little more downside, especially a sales force restructuring just before we sb enter into the fourth quarter. we'll have to see. this is at least a good first step in the right direction. that's the way we characterize it. >> collin, jack dorsey referred to twitter as a news network during this earnings call. i wonder how you parse that, give than they're airing nfl games, they're doing a number of other things that aren't exactly traditional news. does that help clarify twitter's mission, do you think, or is it just yet another explanation that needs backup? >> well, i think that twitter is trying a lot of different things to reengage with users and accelerate growth. i mean, certainly from its origin, twitter has been a broadcast platform, so that
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would include news as well as other activities and content. so i think that's mostly consistent with what twitter's message has been. obviously, live events, live video is a new spin on what twitter is doing to engage. >> and so, neil, i wonder, as you look at the res rest of the year and into next year for twitter, assuming this acquisition rumor mill dies down from here, what are the specific metrics we should be watching? back to maus and daus? are we past the point where squeezing the most revenue possible out of a slow growth or no growth user base is the story? >> yeah. you know, ultimately if these guys want to really be in a position to reaccelerate their advertising revenue, they're going to have to show mau and dau growth and increasing engagement. and, you know, in the face of
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facebook and now, you know, instagram having a larger user base than twitter, i think -- and now you also have snapchat, which is becoming a much more, you know, more popular site amongst younger generation people and amongst advertisers, i think, you know, there's a lot of competition for that social media dollar, and if twitter can't show meaningful reacceleration this their user base, those dollars are started to flow outside of twitter and will continue to flow i think at an accelerated pace. so this is a very critical juncture for the company. if they can't show user growth through all these initiatives on the product side and the live streaming side i think we could see, you know, the stock fall pretty meaningfully from these levels. >> i'm just surprised. i mean, when a debate happens or when the cubs win game two, you don't hear about people going crazy on snapchat, at least not
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yet, neil. and i wonder whether or not you gave lot of credence to some of these sell side surveys that show marketers with decreasing spend plans going into next year on twitter. >> yeah, you know, we've talked to a number of agencies and, you know, they've become quite lukewarm on twitter. some have definitely pulled some money away from twitter as well. so, you know, i think the live streaming is a unique opportunity that twitter has kind of grasped, and, you know, maybe it's a way for them to enter into a meeting with agencies and then be able to upsell and talk to agencies about everything else that's going on. but, you know, i think that will this will take some time to play out, but if, you know, advertisers want a big bang for their buck, they're going to go to where the audience is, where the eyeballs are and, you know, still live video is very small. the nfl was about 3 million viewers versus, you know, 300 million viewers on twitter.
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so it's still pretty nascent. >> still a company to watch. neil, colin, thanks for joining us. >> thank you. >> and speaking of twitter, our own sara eisen is in cincinnati where she spoke to the ceo of what happens to be the biggest ad buyer in the world, procter & gamble. interesting to see procter & gamble continue shrinking even while other of these conglomerates are acquiring companies. >> yeah, and they're looking for growth and doing it by ramping up advertising, kayla. they have had some big hits, like a girl campaign, when it comes to viral video. you remember from last year's super bowl and the rio olympics. went crazy on social media. i asked ceo of p&g david taylor when it comes to allocating the dollars, where is he getting the biggest bang for the buck, snapchat, facebook, or twitter? >> the area where we've got bigger investments would be
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google and facebook. if you look through the u.s. or maybe alibaba in china, and then it varies in other countries. and it's typically ones that have a broad enough reach and enough inventory and interest within their users to be able to communicate our key messages. and those two would be the ones i'm probably most familiar with in terms of differential benefits. >> and on this topic, how much of your e-commerce strategy right now and selling the products is dominated by amazon? >> we focus starting with the consumer back. amazon is the largest pure play in the u.s., but if i go to different countries there's a different answer for alibaba and others. in every market we want to reach the consumers when and where they're receptive to our message and wherever they want to shop. >> a lot has been made also recently of p&g deciding to spend less on targeted ads on facebook.
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so i did talk to taylor about that issue, and he makes it preti clear while they're not decreasing their money spent on facebook, they are looking away from target. there's such a thing as overtargeting when it comes to going broad and selling household products. listen. >> one of the things we have learned, though, is -- and you've probably read about it, we need to make sure that we reach enough consumers to achieve our objectives. one of the watchouts is with digital media you can be incredibly precise and targeted, but in doing so you may narrow the audience down to not have enough consumers to be aware of your grand message, and that's one of the learnings and we've learned a lot about that. it's not about not using social media. it's just about recognizing social media has to be able to reach enough consumers to make a difference for the brand. so. >> so the take-away from taylor when i asked him about where he's spending money, snapchat, facebook, fall bet, he brought in alibaba, talked about china. when i asked him about where
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he's spending and focusing his strategy when it comes to selling products, he also brought in alibaba, and it goes back to what he told me earlier when i asked about the chinese slowdown, he said yes, you're seeing a slowdown in the monitored data when it comes to consumer spending, but it's all shifted online. you're still seeing 20%, 30%, 40% growth in consumer spending in china. it's just happening digitally, which is not being tracked, which is clearly why alibaba is on his mind. now kayla, i noticed earlier on "squawk box," your parents made a cameo on the show. i did want to share with you that my mother is also here as we are here in cincinnati. it is family day on cnbc. she's brought us breakfast after coming from the gym. i just thought you would like that. if you didn't see kayla, that was a great moment when your parents joined andrew in swing state georgia. now we're in swing state ohio. >> nice to have some moral support, the early mornings. my parents surprised me showing up at andrew's live shot just a
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few minutes away from where i grew up. so i know that our parents really love when we come home. so on the cincinnati beat, for good, sara eisen. and mrs. eisen. >> absolutely. yes. getting feld along the way. >> very important. always very important. nice, warm, home-cooked meal. sara, see you soon. our thanks to her mom as well. coming up, new wikileaks revelations link the clinton foundation to paid speeches delivered by former president bill clinton. eamon javers has that story in washington up next. first, check out shares of zto express making their market debut on the nyse today. and trading down. down about 7.5% after pricing at $19.50, opening at $18.40. this is a package delivery company that delivers goods sold on alibaba and j.d..com and it's down about 8% in its debut. ♪ if you're on medicare, remember, the open enrollment period is here.
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coming up on "the halftime report," a new trade pegged to the election from mr. wonderful, kevin o'leary. he says it goes up no matter who wins on november 8th. and new warnings on big-name stocks in the health care sector. we'll tell you what they are. and one of the most powerful entertainment moguls ever on media consolidation, the next industry he is searching for star power. and the top movers on this,
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the busiest day of earnings season. see you in about ten. 12 days until the election, the clinton camp continues to play defense against the daily onslaught of these wikileaks revelations. eamon javers is at the nation's capital with details. good morning. >> good morning, carl. thanks to the stolen e-mails we're getting a look inside the clinton money machine including a really astonishing note that was penned by doug band, the personal aide to bill clinton over a long period of time, back in 2011. that's one of these leaked documents. in it he sort of describes just how closely intertwined all of the clinton personal business and foundation business was in terms of doing business back and forth with each other. take a look at this note from doug band, in which he lays out what he calls bill clinton's inc. president clinton's business arrangements from have yielded more than $30 million for him personally with $66 million to be paid out over the next nine years. he also says that we have solicited and obtained, as appropriate, in-kind services for the president and his family
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for personal travel, hospitality, vacation, and the like. and then band goes on to detail some of the amounts of money that bill clinton was paid for speeches including $900,000 to ubs, $750,000 from ericsson plus what he called $400,000 for a private plane, bhp paying $175,000, barclays $700,000 for two speeches. all of that gives you a sense of how intertwined bill clinton's foundation, personal business, and a private company called taneo all were. the clinton campaign has put out a statement saying we are not confirming the authenticity of individual e-mails hacked by the russian government to influence the election by weaponizing wikileaks. that's clearly part of what's going on here, guys. we are getting this hack that now gives us astonishing insight into the communications back and forth between the clinton aides over all of these financial arrangements. and you see some real disputes spilling out in these e-mails as
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some of the aides clearly thought it was inappropriate, needed to be spoped, some were pushing forward and saying there was nothing wrong with it. we'll have more throughout the day, carl. >> all right. thanks. i'll take it, eamon. fascinating now bhp got a better deal than everybody else. wonder how that worked out. when come back, apple unveiling new products and later today everybody expected a new lineup of mac books and updated chips across the product line. new details up next. we need to be ready for whatever weather may come our way.
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my name's scott strenfel and i'm a meteorologist at pg&e. we make sure that our crews as well as our customers are prepared to how weather may impact their energy. so every single day we're monitoring the weather, and when storm events arise our forecast get crews out ahead of the storm to minimize any outages. during storm season we want our customers to be ready and stay safe. learn how you can be prepared at pge.com/beprepared. together, we're building a better california.
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apple is unveiling a new product lineup. what we might expect. josh? >> reporter: morning, carl. so we are at apple hq where tim cook is expect ed to unveil som upgrades to the mac line. the star of the show could be the macbook pro. we're expecting a pc that is thinner, that's lighter, that's faster. among the new features that people are at least speculating we might see today would be a new kind of touch screen keyboard strip, and the idea seems to be maybe the icons would change depending on what you're in so it would be different than in word versus whatever you're gaming. you can see how for pros maybe the keyboard shortcuts could be something they'd be looking forward to. other things we might be looking forward to, new touch screen i.d., incorporating apple pay, and also, of course, these new macs will be running on ciara, the new os, and the voice assist
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ant to the mac. the mac we heard this week from apple is showing some signs of fre pressure in q-4, units down, revenues down. now apple executives will argue they are going against tough comps. it was interesting because when i also asked tim cook about that he said, listen, when you have this many rumors about what we might introduce, that also, he told me, creates a pause in demand. i think for our audience, traders and investors, the mac does represent about 10% of the company's overall revenue. so can cook introduce a new machine today that excites consumers, get it out in time for the holidays? if it's a hit could that provide maybe a positive financial tail wind that investors might not have been considering over the next few quarters, guys? >> josh, thank you very much. can't wait for that. sort of got buried in the slew of other news we've gotten today. by the way, it's not just twitter and it tesla, two names reporting results after the close. we'll get more from google and amazon after 4:00 eastern time. the dow is up six points.
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a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley
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a lot more it tech earnings this afternoon. amazon and google parent company, alphabet set to report after the bell. amazon on a pretty good run of
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late posting five profit quarters in a row along with obviously a big gain in the stocks, all-time highs lately. as for alphabet analysts expecting a 20% increase year on year, shares of that stock up over 7% in the last three months. it's almost impossible to keep track of all the news that amazon has made even if it's small stuff like buying a show from the creator of "mad men." but 833 got some attention and i think four analysts have targets of 1,000 or more. >> a lot of eyes on the cloud number given microsoft's strong performance in the category several days ago and then for google, a dependable voice on the call. we know they've scaled down their fiber project so you wo wonder if that shows up in the cost line for them, sort of what the argument is that google's making for growth here and discipline. >> or what comments they make about the pixel and any momentum that they are seeing in the wake of the samsung galaxy note 7 debacle. it's hard to imagine a better timed entree into hardware than
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what google was able to pull off here. did they capture market share with that? >> right. and do they have the supply constraints apple had to talk about earlier in the week. you can't ignore the ten year today at the highest level since the spring, and jpmorgan 30 cents from $70 is getting a lot of air tension along with regionals, getting a the lot of play as people are talking about a december hike looking more and more likely. >> and you have the front end of the curve really supporting that thesis, the two-year yield is up about 2.7%, so certainly something that we're going to keep an eye on today. also let's get a check on the p ipo, zto went public earlier this morning. it was down about 10% at the lows. of course it is the package delivery agent for alibaba and is falling in sympathy with this name. opened at 1840. hasn't been able to hold those levels.
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we'll see where it closes but it doesn't look like it's going to get close to that price. >> global demand, the company listed with the nyse because that actually helps awareness in other parts of the world being list ed in new york, so that's big part of their strategy all owe the pricing looked to be difficult earlier this morning. let's get over to scott wapner and "the half" at hq. ♪ and, carl, thanks so much. welcome to "the halftime report." i'm scott wapner. the earnings parade, it is the busiest day of the season, a pretty good one at that. the biggest companies beating expectations today. stocks like twitter, tesla, bristol and ford on the move. amazon alphabet. with us for the our joe terranova, steve weiss, the brothers najarian, and john ficktorn. great to have you

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