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tv   Squawk Alley  CNBC  December 14, 2016 11:00am-12:01pm EST

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prices? folks speculate whether he can give medicare the power to negotiate. a lot of people don't think that will happen. it would require congress to step in. also, he's proposed reimportation of drugs from overseas. and the most important thing people are focusing on now is this ability to influence public opinion through tweets. we've seen a lot of that interest donald trump recently and other industries. folks are just waiting for sort of the next epipen for donald trump to step in here. a lot of that conversation going on today. back to you. >> carl, we send it over to you. >> sarah, thank you so much. good morning. it is 11:00 a.m. at donald trump tower and "squawk alley" is live. ♪
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♪ >> good wednesday morning. welcome to "squawk alley." our john ford sought side trump you toer in manhattan as the president-elect meets with those tech ceos. it does bring us to our top story, donald trump hosting top executives from silicon valley including tim cook, cheryl sanldzberg and elan musk. what is the latest? >> carl, the ceo of oracle just showed up about 10, 15 minutes ago. you might note it is quite a bit ahead of when we expect that actual meeting to be this afternoon. so interesting that she's coming early. i'm trying to get some insight into what she might be doing here at this time of the morning. but it's a meeting that is remarkable for the heavy weights of tech who are showing up.
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we mentioned jeff baez yoez, tim cook, larry page, cheryl sandberg from across the whole spectrum of consumer tech, social, enterprise technology just a power house, of course, hundreds of billions, trillions worth of market cap represented here. so we'll see what comes out of this meeting. they're expected to focus with the president-elect on issues that they agree on including the economy and job creation. ibm already out with a statement of how they hope to hire more than -- or around 25,000 workers over the next several years inside the u.s. as part of their efforts around data center, around cloud and the transformation that ibm is going through. quite a few topics they can discuss here, carl. >> don't go anywhere. we'll lean on you as well. tech ceo's make they're way to trump tower. one of kara swisher's latest columns titled, as he sets down
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the hair for tech, shame on silicon valley for climbing the you toer in silence. she joins us on the cnbc news line. good morning. >> hi, how you doing? >> i'm good. you made your point pretty forcefully earlier in the week. what do you expect the meeting to be about? >> about donald trump's photo app. that is pretty much what i see. it's great for donald trump. fantastic. they're all coming there. they probably won't say much of anything and talk about bringing jobs to the u.s. and try to look cooperative, i think. >> do you think it will go better or the same as meeting between membersst media and the president-elect a couple weeks ago? >> the same. trump will run the whole show. he's running the entire show. they're just showing up and doing, again, they're doing a'yoe opp with hichlt he looks good. they're going to bring jobs to the u.s. and care about the economy and, you know, it's their -- the same thing that went on with romney. it's the same thing that went won al gore and here it is
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again. >> still though, these are not shrinking violets, kara. these are titans of business in their own right. are you saying they're going into this meeting with no prep, no arguments to be made, no evidence to bring like bezos tweeted thought morning? >> it's a giant group of people. this is not a debate. there is not going to be a debate. i'd be surprised if one of them challenged donald trump on a lot of his statements that he's made about tech. much of which, you know, you know i'm a critic of a lot of tech stuff. manufacture the statements are just not accurate about where tech is going and, you know, he's opposed to apple incription and tagged apple -- i mean amazon on taxes. he at one point said we should close parts of the internet and bill gates should do it. obviously, they have to cooperate now. he is going to be president. so each of them has financial issues they have to deal w they got regulatory issues. and so they have to make their journey and, you know, i don't like using the expression kiss
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the ring. but that's essential wla is happening here. there is a big group of people. you won't see suddenly an outbreak of honesty going on and have great speeches, you know, that dhsh is just a'yoe op for donald trump and good for him and good for peter teal for getting them all to show up and do that. >> john? >> kara, it's highly unusual to have these executives, these o ceo's gathered for any significant period of time. i'm hearing there may be some effort among some of them to organize a side meeting perhaps to discuss issues v you heard anything about that? >> no, i haven't. with trump you mean? obviously, these people like the behind the scenes meetings. they don't want to do anything in public or make public statements about things that are important about immigration, trade, tolerance and the way silicon valley is supposedly
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believed in diversity and other issues. you know, this country is built by immigrants. for them not to say anything about the immigration proposals and the registry which will be apalling, i think. so maybe they'll express their discomfort with this and n. private. i think she you this do it in public. i don't think they should and i think there will be lots of meetings on the side. i know that each of them is trying to reach out individually to trump to advice him. i think travis and elan musk are now on that strategic committee. so i mean they're all going to influence climate change and whatever the personal issues r so there is going to be a lot of that, obviously, behind the scenes. but the public posturing is just trump does public posturing and they don't. they won't do it. >> kara, you know, there had been at least one public olive branch in the form of jenny romety's op-ed this mork.
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she said the company is create 25g,000 new collar jobs. the caveat that they laid off 53,000 people in the last couple years. do you think more ceos will weigh in about programs that they are willing to undertake to sort of meet the president-elect half way? >> well, that's the thing you have to say now. you are going to create jobs in the u.s., sfligt that's what you're going to say. that's this is what must be said. they're going to do it. these are companies that have been outsourcing joobs forever. wall street wants profit. wall street wants them to perform. and cheaper to make things in china or whatever they're making their products or having their call lines. so the thing to say now is we're going to create a job in the u.s. let's bring jobs to the u.s. it is the right thing to do. they would have done it before. but now they're under political pressure to do it and so they'll do it. they don't want him to tweet like they tweeted to boeing. you know, that's what they're in fear of getting a tweet like
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that again. and so i don't know why they didn't say it before. that but now they're saying it. so it is political expediency. we'll see how real that is and how much they'll stick it with over time. they laid off 53,000. so the last 20,000 to throw a bone to the trump administration. again, obviously not a trump supporter g for them tore pressuring these people to do these things. they're getting what they wnlt. that is the key part. this is all about donald trump looking strong and bossing around our most innovative and important industries. >> care yashgs one last point. a lot has been written about the executives going. but you written a bit about those who are not including jack dorsey which raises eyebrows. that is the platform which many believe trump has the most xpoe exposure. to why isn't he zbhog. >> he wasn't invited. that's what i'm told by my friends on twitter.
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maybe he got invited at the last minute. he wasn't invited yesterday. these people have private planes. they can get in pretty fast. but he wasn't invited as of yesterday. i don't know why he wasn't invited. i guess teal was in charge of the invitations, essentially. and i'm not clear why -- he wasn't particularly any more outspoken than cheryl sandberg or travis or elan musk. you know, i don't know. i know why they didn't invite jack. maybe the room? i have no idea why. >> i doubt that is the issue. but time will tell us more, kara. you will, too. thanks for coming to the phone today. >> yeah. thanks a lot. >> kara swish, executive editor of recode. we're watching the markets. dow is down 37. investors are awaiting the resultsst fed's meeting today. our senior markets commentator is at post nine talking about the dynamic that's are going on today and what may change.
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>> it's an interesting junk tour. we're approaching this 20,000 level. the market is showing a little fatigue. i think it came by that fatigue honestly. it's not as if we're approaching 20,000 after hanging around just below it for a while and gathering up energy to push through. i think the round number has a little bit of, you know, at least headline significance in the sense that looks like a culmination of a move as opposed to anything else. in terms of the fed, we get those real quick rapid fire moves in the tape right after the fed, you have to believe you're within the band of one of those to at least touch 20,000. >> steve, the whipsaw post announcement swins. >> yes. investors are not overthinking it. they know the back half of december is supposed to be strong. whether that means we're building up pent up selling into next year, i don't know. it seems like people are saying i felt underinvested for the entire month of november. i don't think you flip to say now i feel overexposed to stocks because the market slowed down. >> you know, people are sort of
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underestimating the fact that it's the dow that is hitting this important psychological barometer. it is really the s&p 500 that is more broad based. more indicative of how the economy is going. still, it's the fact that components like goldman sachs are up 30% since the election. and the energy components are up sharply as well. you can't really discount the fact that what underlies the dow is incredibly strong right now. >> right. it's 30 kind of dominant worldwide companies, essentially. and that's why it's not something that you just say well, it's kind of a funky construction. that doesn't really matter. over time it moves roughly in line with the s&p 500. and so the things driving the data this point, even though it's an accidental round number, it is significant. the s&p 500 up .5% to a new high yesterday. it's not as if it is sitting this one out right now. >> no. >> mike, thanks a lot. when we come back, a lot more on t the march to 20k. and amazon's first commercial
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drone delivery. we'll have video coming up.
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it is fed day. the dow is closing in on 20,000. this is as oil retreats and bonds rise in the first-rate hike in a year. joining us now, bank of america merrill lynch global commodity and derivatives research.
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welcome to both of you. i want to start with you, francisco. we're seeing a slight pullback in oil today. there is some concern about an inventory build but really the talk in the market is about compliance with this production cut. market didn't seem worried about it two days ago. >> well, look, i think it's always going to be -- we get to january 1st when the barrels exit the oil market. but i do think they are very committed to a cut. remember, there is three reasons why opec is doing this. they need to push effectively the market into -- which they are and you saw it over the course of the last few days. there's been a big shift in the shape of the oil curve. so opec needs to basically penalize forward sellers, basically shale producers. it also needs to take money away from refiners which they are trying to do by changing the shape of the curve and they also
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need to borrow. remember, the biggest geopolitical shift in opec is this group of nations a few years ago were actually group of creditor nations. they were basically lending money to the world. now it's the opposite. we're borrowing money from the world. and about it finish, they're going to have to appease their fixed income investors. they need to erase that. and in my view, that's one reason why opec is trying to mitigate the down side risk. no matter whether oil is $50, $60 or $70, they're so high. they have to keep on issuing debt. and that means they have to minimize that down side risk on prices. so they're going to do it in my opinion. >> interestingly iran just won the ability with the iran deal to issue its own sovereign bonds. geopolitically, what do you think we should prepare for in 2017? a softening of sanctions on russia? potentially new producers coming on to the market? green lining of oil projects in the u.s. that president-elect
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said he wants to green light. how will that affect the oil market prices? >> i mean it's hard to tell to this point what is actually going to come out. i would say there is three domestic pillars of energy policy on the administration. i think one is less regulation which is going to lower the cost of production domestically in the u.s. number two, i think we're going to see the opening up of new federal lands or waters to exploration which is going to increase the amount of resources available to drill. and i'd say the third portion of the trump administration is going to focus son pipelines. and we're going to see a lot more pipelines being built. we heard about keystone and all of the things in that front. and externally, i think to your point, iran sanctions may or may not come back into the agenda. it's unclear to me whether it
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will. i'd say it's more likely than not. but it's still a risk. and then to your point, we could see change onz russia policy. certainly i think it's very clear exxon is one of the biggest -- was hurt most during the sanctions. so they were not happy about it, i'm sure. and now we have the secretary of state nominee being former -- or current ceo. >> much more familiar with exxon's operations in russia and in the middle east. michael, of any pull back in oil, even for a day is thought to take a little bit of inflationary pressure out of the market. how much is should we count that for? >> i wouldn't say too much. i think the base effect from energy is we're coming off whether it's 45 to 55, that's still above where it was before. so even if oil comes down a bit, it's not going to take too much off in term of inflationary pressures. there is a whole host of issues pushing inflation higher right
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now. so the base effect from energy pa passed throughout dollar has faded. petroleum prices being down 27 consecutive months are now starting to move into positive territory. and we think you're going to get modest wage growth and demand driven impulse in 2017 and '18. so everything in inflation is pointing at one direction and that should be a grind higher. >> yeah, treasury market seems to watch very closely what double line capital says about the market. he is saying in a new web cast that he believes the new administration will be bond unfriendly on the back of higher deficits and inflation that could push the ten-year to 3%. do you agree with that? >> i do. maybe not in the very near term future. but maybe not in the first half of this year. but as you get into 2017 and 2018, yes. i think, you know, we're looking at something on the order of 2%
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of gdp tax cut. you got some additional spending in infrastructure and defense that hits our forecast in 2018 and beyond. and even if you get a change at the helm of the fed, i don't think interest rate policy changes all that much. you got a lot of additional supply coming as the deficit moves to 5% of gdp. then you have a knefed that wan to trail this out. i agree that wholeheartedly. >> we'll get that news later this afternoon. for now, appreciate both of your time this morning. >> thank you. still to come, we're going to go live to the you could en& company trading floor. the dow tries to make the way toward 20 k. it's down 30 points. watching shares of microsoft as well hitting an all time high this morning. a lot more "squawk alley" continues in just a moment. what's the value of capital? what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers)
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welcome back to "squawk alley." we're awe fi minutes away from the close of the markets in the
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uk and across europe. they look to set close lower across the board. the euro stock 600 falling from 11 month highs. health care and consumer staples dragging down than decthat inde. j & j walks away from a deal. but david faber reported that san sanofi is in talks with the swiss company. belgian supermarket group falling and the biggest gainer on the stock 600, metro. that is coming after better than expected q-4 results in the food and consumer goods unit. that's what's moving over in europe. for more now on what happens as the dow is getting set to hit 20,000 and where investor sent. is now in the trump rally, let's get to sima mody who is live at cowen & company. >> hi. a big day indeed for wall
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street. you can truly feel the energy on the trading floor. matt over here doing a break doing curls as he trades ahead of the policy meeting. traders expecting it to be a heavy volume day. big focus is the fed meeting, perhaps even more important is the fed policy statement and the economic forecast. traders saying that is more important potentially telling us how the fed views the proposed policies and impact it will have on the u.s. economy in 2017. in terms of stocks and sectors that traders are focusing on electronics really the financials. the 17% run that we've seen in the financial sector since the election outcome. big question, will the rally continue? the head trader here saying keep a close eye on the regional banks. these are names that benefit from a rising rate environment and also deregulation. lastly, health care. that is one of the largest practices. and it's interesting. we really haven't seen an outperformance in the health
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care sector since the election outcome. even the donald trump presidency was seen as positive for the sector, we'll have a discussion about the health care sector and where else you should put your money going into 2017 with peter cohen, that is the chairman and ceo. we'll be talking with him and jeff soliman. more from the trading floor as we go throughout the day, especially wli that fed policy meeting. back to you. >> sounds good. thank you so much. when we come back, we'll go back to trump tower. get the latest on the president-elect's meeting with the sili considcon valley ceos e takes on shawn carolan. dow is down 13. [vo] quickbooks introduces jeanette.
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good morning. here is your cnbc news update this hour. fighting continues in eastern alepo despite a cease-fire deal to allow the evacuation of opposition fighters and tens of thousands of civilians. syrian activists say jets resumed bombing raids over remaining rebel areas. bill cosby back in court for day two of another pretrial hearing. at issue, whether 13 sex abuse accusers should ab loud to testify against him after his trial this summer. pope francis responding to thousands of people cheering happy birthday by joking and
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doing that early may bring on a jinx. frances will turn 80 on saturday. they produced a special stam top mark his birthday. and former "growing pains" star alan thicke has died. he had a heart attack tuesday. he composed several popular tv theme songs including "dirfferet strokes" and "the facts of life." he was 69 years old. let's go to john ford who is outside of trump tower this morning. over to you, john. >> thank you, sue. here outside trump tower we're expects manage tech executives to meet here with the president-elect. catz of oracle has already arrived. she got here about 45 minutes ago. and i'm here with john harwood. john, let's talk about who the president-elect has been meeting with over the past several days and in fact the last couple of weeks. has therein tl been a group like
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this of executives from any particular industry? i mean the group of media executives and anchors comes to mind. fwhut is particularly high power. >> it's high power. and it's different for donald trump. remember, during the campaign, he was talking more to old american industry and the rust belt. he was talking about bringing back steel jobs, bringing back coal jobs. this is a group of executives who as you well know did not care for donald trump and he didn't care for them. he went after jeff base yoez. went after tim cook at apple. they thought his pop plichl was crude. his trade stances were counterproductive. and now they're going to sit face-to-face and see if they can figure out something and work own and have a little straight talk with each other. >> so is today all about pragmatism on both sides or are optics important here? they're going to be photographs and donald trump probably at a table with trillions of dollars worth of market cap in termed of the heads of american technology
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companies. what is the impact of that? and what is the pragmatic impact of what could actually get done today? >> i think in this circumstance, optics are pragmatic. you know, he has been elected president. he's going to take the oath of office on january 20th. all this electoral college nonsense is not going to go anywhere. you'll have executives that have to deal with the white house and presidential administration. so at some point they're going to be talking and don't know whether their relationships are going to over the course of this presidency be 5:00 moanoacrimon or not. they don't want to happen to them that happened to boeing and lockheed martin. the president goes after them. the stock goes down. certainly you can expect tech executives to stand up for their interests. i think they're not going to shrink from disagreeing with the administration if they think it's warranted. but i don't think anybody has it in their interest to get off on a bad foot. so why not? >> john, quickly if you can, what is the role of peter teal
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now? it is similar to eric schmitt in the past? he seemed to be close to the obama administration. >> well, he's the ambassador. you know, he sits on the facebook board. charl sa cheryl sanldberg will be here. i don't know what he's going to do within the administration if anything. but he's a very useful conduit. >> all important things to watch. back to you. >> thank you. so what do tech investors and sill con valley hope to hear from trump's tech summit today? joining us now is the ceo of the consumer technology association gary schapiro and tech investor shawn carolyn who led menlo invest mentes in uber and siri and others. on the scale of photo op to productive meeting, where do you think this will land? >> oh, it's a productive meeting. these are two groups that need each other.
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the president-elect and his team they want to seat tech industry success. it is driving u.s. economy to 20% of stock market valuation n that room we see a trillion dollars of market valuation aloevenlt they're employing millions of americans. over a million good paying jobs are employed by the people in that room. so there's a lot in common. there's a lot they can do. we're talking about trade, highly paid jobs, investment in infrastructure, taxes. there's a big agenda of commonality where they're working together. because we really need each other. trump wants to see this economy succeed. he's not going to let the tech industry go. we need help against the chinese and europeans. they're getting protection. this is trump's forte. he knows how to build. building includes technology. >> shawn, it wouldn't have seemed during the campaign there was much commonality between the two groups k that be overcome? >> of course. i think the key is working together. tech industry is doing really well. obviously top five companies and market cap are tech companies.
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so i hope that the agenda today is really laying out how not to screw that up. i think there is really important progress made this year in terms of anti-discrimination. you know, gay marriage proposals, you know, going through all that type of stuff. immigration for labor. it is really important and manual labor. the hardest working families in america. i really believe like, you know, off shore manufacturing is absolutely essential. a lot of the start-up companies especially tla we deal with, you know, very small team here. eight to ten people. they need to really leverage resources overseas and have the expertise to build the products. and that neutrality is a critical one. especially for the smaller companies that aren't necessarily representative of the room. you know he is on the board of absolutely essential that the bits flow and not just comcast and the bigger companies get to dictate how that happens. >> john? >> shawn, i'm wonld whaerg you think the major topics of
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discussion would be if it were venture capitalists in smaller companies around the table versus these mega cap for the most part tech companies that are participating today. >> yeah. that's a good question. and obviously the smaller companies are not represented as well as the big companies. i'm really hoping that there is emerging categories that are just amazing. so i think of artificial intelligence is one. i see it being adopted as quickly as mobile technology at the startups. we made some investments there. and just to stay out of the way, you know, don't try to slow things down. let the people who are investing and the amazing entrepreneurs do their thing. and like i said, this net neutrality is a really big one. to have the small companies, you know, not be able to discriminate against and they come up with a great new idea, a snap or, you know, new messaging
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platform. all these things. they're experiments for a while until they work. work at scale. uber, of course, is one where regulation has only stood in its way. customers are happy. drivers are happy. they create over a million new jobs for people that are driving that may or may not have had jobs before. they chose this their employment. and if the government can just clear the way and let these companies do what they do best, that's what we're hoping for. >> gary, you know, we talk about this group sort of as a unit. but individually there are some stories imbedded in. there bezos is one. obviously they were critical of each other during the campaign. there is issues about news coverage and "the washington post." how you would be advising someone like bezos to reach across to donald trump where maybe those areas of commonality that you talk about are not as obvious? >> there is definitely commonality. i think it's a difference between campaigning and governing. i think president-elect donald trump is making transition. he needs the people around the
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table. he also needs as was just pointed out all the thousands of other companies. we have 2,200 companies that are members. and when we survey them, we ask what is important in the last few weeks, the number one answer that came back is cutting back on this government regulation whether it's overtime rule which hurts start-ups so you have to pay overtime to everyone that works at a start-up as a professional to other department labor rules. it is stifling out. there even democrats have recognized that now. so there will be a lot to talk about that. there is a commonality. amazon has a lot of things going on. future technologies and present technologies, robotics, drones, self-driving cars. what an opportunity there is there. and of course the infrastructure which we all as americans agree upon. there is a lot of agreement at that table. and yesterday we heard ibm announce the hiring several thousand people in higher paying jobs. i think there's a lot we can do to talk about the jobs of the future, to redirect our
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educational system. they get those phds and master candidates to stay in the u.s. and also direct a lot of kids and say you don't have to go to a four year college to get a degree you doend need a job. we need technical jobs. we have five million jobs open in the country because we can't get people trained for the jobs. there's a big agenda today. i'm sure they'll have many of those issues. >> shawn, finally, uber ceo travis and elan musk among the name added to the policy and strategic quar yor yum. do you think he'll stay in the run for long? do you think anybody else will take up the reigns of being the liaison between the white house and silicon valley? >> i think above all, the tech industry wants progress to be made. and the truth to be told. i think there's a lot of candor in the valley and i think we
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want to make sure that that -- the truth of what is going to work comes out and that if things are falling off the rails in any direction that you speak up. like that's the way things get accomplished and agendas get done. there's a lot of people raising their hand to try to have it be productive and to, you know, frankly, make sure that things are not happening that are anti-progress. so a the love volunteers here that are willing to help. >> we're watching some of the arrivals coming into trump tower. we'll keep you post ond that meeting. john and gary, our thanks to you. >> amazon air taking off this morning. it could somebody time before a drone is delivering your next package. rick santelli, what are you watching today? >> i'm watching a market whose big number is minus 77. i'm also, of course, watching all the markets, trying to figure out how is the fed going to deal with the post election
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moves with regard to policy? we're going to talk about all of that after the break.
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sounds good, scott. thanks so much. news from jeff bezos this morning. amazon is announcing the company made the first delivery by drone. the delivery made in the uk. contained a fire tv and bag of popcorn. it took the drone 13 minutes to deliver the 4.7 pound package. take a listen to the video that amazon put out. >> here's how it works. moments after receiving the order, an electrically powered amazon drone makes its way down an automated track and then rises into the sky with the customer's package onboard. these drones are autonomous from takeoff to landing and return, they operate completely on their own. cruising quietly below 400 feet. >> the company launched the video streaming service in every country in the world today except for china. john ford, interesting. they've been doing a lot of testing of the drones in the uk.
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it's going to be interesting for our own department of transportation once they want to do this at scale in the u.s. >> it will, indeed. i have to say with republicans in charge of congress and of course with donald trump as the president in 2017, you got to think regulation wise that is possibly an ideal environment for doing away with the regulation that's might stand in the way of things like drone delivery. of course, there is a lot of nuance here. you want to make sure that things like this are safe. you look at that and you look at things like amazon video and the net neutrality issues around that is actually powerful companies like amazon, i believe. and even like apple and the telcos that want to find cheaper ways of delivering video to people who may be on subscription plans. so if knelt neutrality either goes away or gets sliced and diced there, there are actually some advantages to be had by companies that have quite bate of power in the system.
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>> they're down 7% for the quarter but for the year, hanging ton a 14% gain. john will be talking about that a lot more. let's get to the cme group and get the santelli exchange. hi, rick. >> hi, carl. the big noub day is minus 77. charts, please. you look at a two year european note, that could be the new historic high-low yield close that certainly an intraday move of note worthiness. and it's not only limited to the two year, three year notes carving out new negative territory as well. now what should the fed do? with the policy regarding these big moves, we had many, many economists, analysts, guests trying to address this. so let's frame it out quite simply. should the fed be preemptive or should they be permissive? and pretty much mark olson to y
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today, they were both in the permissive camp. so what do they say? they say that fed should wait to see the whites of the eyes of the data a couple months in the future regarding how today's market moves should be assessed. the foundations and solid foundation is this built on the notion that donald trump with a republican house and republican senate will be able to do all the things he's going to do? okay. being permissive says just take your normal strategy versus i have to say i would lean more on the preemptive side. listen, there was definitely a bias and pretty much every activity central bankers have monitored to be more accommodative during periods of uncertainty. okay? but i think this is a period of uncertainty where the fed and all investors are getting what they wished for. every desk constantly talks about the notion that we need structural reformed, janet yellen and the committee admitted as much.
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so somewhere in the middle most likely in the gray is where they're going to be. what do i mean fwha? they're not going to adjust policy too much. i don't think you'll see 50. i don't think you'll say, boy, buckle up! we're going to have so much more activity on tightening over the next 12 months and 2017. but, but i do think somehow they are going to weave into the statement a rift of preemptiveness. they need to acknowledge this is a rather historic run. and finally, one other issue to touch on. the other keystone that everybody is on is with regard to the streng njt dollar. listen, i know it's a negative for the big multinationals. but there is a lot of different companies that contribute to the u.s. economy. you can't please everybody all the time. i just don't see a way around this one. i think the fed is getting a lay-up with regards to making a move now with market strength. i think the dollar strength goes right along with feds raising of rates. back to you. >> all right.
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thank you so much, rick. when we come back, the results of the cnbc global counsel survey is out. and one sthing clear, they want to bring the cash back home. they don't want to be told how to spend it. the details up next. ♪
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getting action on generic pharma stock. let's go to dominik back at hq. >> we're watching shares of
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teva, mylan, and even the ibb. they did spike a little bit lower and are now recovering some of the losses. this on the heels of bloomberg headlines saying that the u.s. had filed its first charges in a generic drug price fixing probe. those headlines are obviously moving the stock now, but wall street looking for some more information on which individual companies may be specifically mentioned or targeted by this particular charge. if so, which ones they are going to kind of go after the most. again, we'll keep an eye on the stocks, but that's the reason why, guys, those shares are moving. back to you. >> thank you, dominik. meanwhile, u.s. kofrcorporates the opportunity to repatriate their cash. the message is don't tell us how to spend it. jackie deangeles has results from our global cfo council survey. >> that's exactly the issue. the idea that the government should dictate how the saved cash is spent is troublesome to some cfo's.
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what they would like to do with trillions of dollars held by corporations overseas? it starts with stock buy-backs. about three-quarters of the cfo's polls say they disagree with the idea that companies shouldn't be allowed to use repatriated cash to buy back their own stock. the last time the government offered a tax holiday in 2004 and the use of the saved cash for stock repurchases was prohibitive at that time. now the question becomes, well, what do they want to do with it? only 36% say they have a specific plan right now on how they might spend the funds, but almost 100% said they will have a positive impact on their company. the general consensus was this should be president-elect trump's first order of business. now, when allocating capital 28% said they're looking at strategic acquisitions, and 23% said they would add real estate and the same amount said they would spend money on r & d. only 3% said they would buy back stock, but clearly they want the
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option to do it. >> jackie deangeles, thank you very much. when we come back, two big events we're watching today. both at 2:00. trump tower obviously and the meeting with those tech ceos. meanwhile, the federal reserve announcement coming at washington d.c. dow down 34. not far from the lows of the session. stay with us. they are the natural borns enemy of the way things are. yes, ideas are scary,
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and messy and fragile. but under the proper care, they become something beautiful.
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>> waiting for dashlg arrivals as that meeting of tech ceos will going to take place. going to be a weird collision as we watch for any headlines coming out of that meeting. while we're obsessed with what the fed is saying in washington. >> reuters also reporting that alphabet's google is racing to hire conservatives for its lobbying arm to be better prepared to be doing business with the new administration. i believe john fort is still standing by. what will be you watching for throughout the afternoon? >> well, i'll be watching specifically for these executives coming into trump tower, that there is another entrance. we'll have to perhaps look at both to see who is, in fact, coming in when. also, hearing that tim cook, the ceo of apple, and elan musk of tesla and solar city will be staying after the meeting to discuss some things more in depth with president-elect
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trump. also interesting to note, i am hearing that some of these ceos will be meeting ahead on the trump meeting just meeting amongst themselves. who knows what they might be discussing. it's a rare opportunity for executives of these caliber of companies. the size of company in tech to be in one place at one time. lots of interesting things could come from this gathering today. >> i don't mean to put ow the spot, but we began the hour talking to cara swisher about her fiery shaming silicon valley executives. are you willing to go that far? what are they expected to do in this type of environment? >> well, carl, i mean, passions are inflamed in the united states after this this extremely contentious and frankly nasty election campaign season.
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these are executives that operate globally. they are used to things like that. tim cook has been to china more than once or twice and has dealt with ups and downs in the economic and political environment there. while this might be odd to have happen on fifth avenue, it is not odd in the lives of these executives and the way they conduct business to have to deal with some puts and takes. while they have some issues around perhaps communicating with their employees around what they're doing, this is a pragmatic bunch. >> certainly one of the bullish arguments being made about cabinet appointees. tillerson and others, that they are prepared to do this kind of discussion around the world because they've already taken part in cutting deals in extremely volatile environments, countries. >> we still haven't seen who would be the appointee for the chief technology officer, the chief public information officer. we'll see if he draws from silicon valley for those roles as the obama administration did. >> right.
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well, we'll keep our eye on that meeting. it's interesting to hear art cashin say once are you done with the announcement and the presser, keep your eye open to see if trump does respond somehow to any decision on twitter and what that does to the conversation. >> he is no stranger to doing that. >> let's go to scott wapner. a busy afternoon ahead and "the half." ♪ >> our top trade this hour, the debate over dow 20,000. what that milestone really means to your money and whether it's a sign of even greater things to come or a warning signal that stocks have simply gone up too far too fast. with us for the hour today, joe terra nova, stephanie link, the brothers najarian are here, barbara duran, senior portfolio manager. richard fisher is mere as well. he is the former president of the federal reserve bank of dallas. it's great to have everybody here. mr. fisher, i'm going to go to you first.

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