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tv   Squawk Alley  CNBC  March 29, 2017 11:00am-12:01pm EDT

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welcome back to squawk on the streets. i am kate rogers. stocks for consumer discretionary are the top so far. they include nordstrom, khol's, target and gap and check out amazon trading at an all-time high. consumer discretionary just after tech. down nor "squawk alley." it is 8:00 a.m. in san jose, california. 11:00 a.m. here on wall street and "squawk alley" is live. ♪
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>> good morning, welcome to "squawk alley." i'm john for foton. >> the british prime minister, theresa may, triggering article 50 this morning starting britain's two-year process of leaving the european union. >> we will no longer be members of the single market. we are going to make sure that we can strike trade agreements with countries from outside the european union too, because, important though our trade with the eu is and will remain, it is clear that the u.k. needs to
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increase significantly its trade with the fastest growing export markets in the world. >> john, the reason i said that sort of jokingly, was willford and i were there nine months ago when this vote happened, surprised the entire world. the big question was, when was britain going to trigger article 50 starting the divorce talks. now that we have done it, i think the question is, how messy is it going to be? >> this isn't the actual original one. it is a copy. this was the letter. the two big takeaways are the tone of thele letter. also, pretty long and detailed outlining some of the key areas. the key point, two years from now, april, 2019, britain will have left the european union. lots of key topics that will be discussed and we have a graphic that shows some, interms of
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financial payments. will the u.k. leave and have to pay something or get some back. what kind of terms of trade for the financial sector will we see? most importantly, number five, the time frame for implementation, not just april, 2019, when they leave will the new terms be set. will they jump off a cliff or be allowed to come into place slowly over the coming years ahead? >> we can't help but notice the prime minister there mentioning the fastest growing export markets in the world as being the main target for trade negotiations. that doesn't sound like the united states. that sounds like asia. >> i think the point that the prime minister is trying to make that is they pull out of the european union but want to maintain trade with the european un union and can open trade discussions with everyone. the u.s. will be pretty high on the list. it was a big boost for the brexit camp when mr. minan u ch
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and president trump came in and said, we will do a new deal with you, certainly sgchlt will bear rid on those issues are so many pro small details. i just picked one random chart of one industry that is going to be affected and lobbying big-time. how about the fisheries in the uk? this is a big industry. not just in the uk but in europe. many imports and exports go back and forth. it is a financial issue because the big fishing companies want there to be tariff-free trade on both sides. also, it is an access issue. a lot of these european fisheries and fishermen, they fish in british waters. will that no longer be the case. are those common waters going to go back. it is just one tiny example of one industry. it is access, trade, immigration as well. >> that's why it is two years, a
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complicated process. interesting on the markets that the pound rallied during prime minister may's speech this morning coming off its lows. it is down a little bit no, 0.2 of 1%. >> apple has announced a major update to the iphone filing system. we are gearing up for a summer of software news from apple and google leading up to the biggest iphone launch in three years. we have a managing partner with ggv and ryan white is joining us from drexel hamilton to talk about this. brian, start with you. what's the significance of this galaxy s-8 launch specially given the debacle that was
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samsung's launch. >> they really have to redeem themselves. i think there will be great innovations. i think a lot of people are waiting on the iphone, the great, which comes out this fall. so despite some innovations, it is a bad year to play catchup in my view. >> hanz, what's your take, specially given a global perspective? how much does samsung have to prove even if the reviews are great out of the gate. are people going to be weary of the quality? >> we are at a point where smartphone has reached its saturation. it is a very mature market. worldwide sales grew only 7% last year. half the growth rate in 2015. it is very difficult to come up with a phone that will wow consumers greatly. there are some rumors about what they are going to do, how they will have bigger screen, bigger display but are they going to be dramatic enough for consumers to be excited. we have to ways.
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>> honz, samsung has a company called viv. is that going to be integrated into this phone or the next model? >> there is rumor that bixie will be in this model. this ai assistance will be quite rudimentary to start. it will be more to help the user manage the features. it is just beginning. >> so, brian, putting this launch today into context, it is an important year for apple as well. they are set to release their iphone 8. hanz brings up an interesting point about the market saturation. it feels like these sexy, big press conference events around smart phones are getting old. where is the artificial intelligence products, where are the driverless cars? why aren't we there yet with apple or samsung? >> the market is barely growing. i any thatthink that's why appl
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still very interesting. they only hold 15% globally. this is not an industry where you have 60%, 70% share. when i look at apple, i think of when you are talking about. the world is becoming a computer, whether it is our televisions, watches, a company like apple can really differentiate. samsung cannot. they rely on android, which is google's operating system. >> they rely that for the smartphone. despite this massive headline issue they have, the stock price has done remarkably well. this company, two, three years ago, moved very much on the news of what its galaxy phone was doing and whether it was beating apple. it has evolved over the last year. is it much more broad and tied to other tech factors across the world? >> i think samsung is expanding. there are 5 million units out
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there. they are expanding beyond film to try to add ai and so forth. i think every phone company will think about itself as an equal system. what they have done to come up with 50, 60, 70 different product that is a consumer may want to have. if all this is not seriously integrated, you will not offer a sue preer y superior consumer experience. >> yet, apple is pretty much all-time highs xiaoming and s samsung could not not them off. they relied on software improvements to drive the market forward. white we see a super cycle despite the fact that we are not as excited about phones as we used to be five years ago. >> i think this is a great upgrade cycle.
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i don't want to call it a super cycle. i think what you will see is some of these competitors go by the wayside over the next 3-5 years. i do expect the chinese to knock off samsung. it probably will be wowway. i see it as a wowway apple fight, samsung and some smaller competitors. >> wowway is number three? >> extremely impressive. >> maybe it is the one breathing down samsung's throat. >> when we come back, branding in the age of trump, the new flavor for ceos attempt tog gain fav favor with the white house. rise of the machines. taking over black rock and what it means for your money when we come back in just a couple of minutes. minutes. you always pay
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ford announcing a $1.2 billion investment in three michigan plants gaining an endorsement from the president. a m jort a jurority was previou agreed upon. could this be ford joining a chorus of ceos spinning job creation announcements to gain favor from the white house? let's bring in former office depo ceo, steve avalon currently the president and ceo of economic development and our own john harwood into this conversation. steve, clearly, this is the p.r.
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strategy du jour, announce new jobs and investments whether they were previously announced or being planned to create favor with the white house. will it work? >> the new president spent his entire campaign tweeting about companies moving out and criticizing them and praising ones that are here in the united states. he has continued that. it is no surprise that companies say, like pavlov's dog, ring the bell and i'm going to announce all the good things i'm doing. they are getting praise, recognition, p.r. elected officials need to come together and fix the issues. there is so much discussion on health care, tax reform and regulatory reform. all the things that drive the long-term cost of companies. that's what's going to compre eight the long-term change beyond the nice p.r. mentions.
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>> i like to call this regift whg regifting when it comes to these jobs. how common is this in politics in general? >> every politician tries to take credit for the sun coming up. that's not new. but what is different is that we have a president who uniquely is interested in branding a lot more than the quality of the product. companies are playing the game. he has 26 million twitter followers. they don't want to have him bring down wrath on him. if they have regulatory issues, something that flat terse the president and makes him look good, it is good for him. everybody knows it is not real. it is kind of like the president claiming credit for having cut the cost of the f-35 strike
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fighter. those cost reductions were announced by the pentagon before he took office. we have a different kind of president that says a lot of things that aren't accurate. it is in therefrom all along. >> does everyone know that already. have we reached that time frame where people don't believe these tweets. do they buy in even if on occasion you can prove some facts are incorrect. >> there are some people na believe them. there was a poll out yesterday that showed 74% of republicans believed that the president was wiretapped by president obama. yes, you can get people to believe that sort of thing but, remember, this is a president whose approval rating is now down to 36% in a recent quinn pea ac poll. 60% of the american people said
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they thought he was not honest. there are some but not as many as the number that have come not to believe what the administration is that i go on issues of this kind. >> manufacturing is still down 5 million jobs since the late '90s. i wonder, as we get the focus on manufacturing jobs, if it is going to move the needle. these announcements, some of the policies we are putting in place and, if so, if we start to see a real return higher than we have seen in this recovery, it is a great strategy by the white house. >> i think it is. these are not fake news announcements. these are real announcements office real actions that have happened. nobody is hiding the date of when they first started, the actions started. look, i think all of this us great, whether it is a manufacturing job or a service job or a knowledge economy job. they are jobs. that's what the president ran on. that's what people elected him to do. i think celebrating.
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we can't do this as the literal tweet and whether donald trump created this or didn't create it. the fact of the matter us, we have driven consumer confidence to a 16-year high. businesses understand they are responding and that's what the voters wanted. i think this is to be celebrated. it is a good start. >> i take a little issue with that. if there is exuberance, optimism but it is not based on what it pierce to it pierce to be based on. he said he was going to bring jobs back. here are the jobs. if those jobs were announced a year and a half ago, perhaps people are optimistic based on things that are incorrect. my question to you is, steve, at some point, does it become detrimental for ceos to continue playing that game? >> no. it's great. these are incremental jobs. some of the actions were earlier. the total vs. been added up but what difference does it make.
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people are focused on creating jobs. you haven't heard announcements of jobs being moved, factories being closed. this is what the people wanted. let's give the president some credit. he can't get all the credit. let's give him some credit for refocusing an american business on creating jobs here, whatever kind of jobs any are. i think that's the point. that's to be celebrated. >> i agree with steve on that. job announcements were good. whenever they were originated, that is good. the president has talked about deregulation and tax reform. if those two things happen, those are some of the reason for business optimism. if they, in fact, produce growth, that is also good. there are things to be celebrated. the challenge, as you indicated, john, is if the claims bump up against reality, i'll give you an example. i was with a lawmaker from a coal state the other day. yesterday, we saw president obama with coal miners saying we
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are going to bring the coal mining jobs back. he signed the executive order that goes after the kleen power plant. this representative from a coal state said, i wish the president would stop saying coal jobs are coming back, because they are not coming back. o eventually, people are going to recognize that because of competition from gas and other factors. that's where the rub comes. >> the proof will be in the jobs numbers we can continue to see. guys, we'll leave it there. good conversation. certainly, a bull market for p.r. agencies in dealing with this new playbook. john harwood and steve odlin. the house of representatives voting to repeal internet privacy protections approved in the final day of the obama administration. the rules which have not gone into effect would have required internet providers to get your permission before sharing your personal data for advertising
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purposes. >> in the previous, they were a symmetric obligations in terms of privacy imposed. the argument that i and my counterpart has made is that the ftc has applied a uniform set of rules to all players in the online space. >> so what's good for google is good for the internet service provide sners. >> we just want every company that is handling consumer data to handle it in the same way. >> he argues that there should be uniform standards whether it is a free service you are getting from google or yahoo! or facebook or whether it is the internet service provider and we can work from here to figure out what those standards could be. his opponents are saying, hey, wait a minute, the isp, comcast, at&t, they have way more data. i am paying them. why should they be able to sell
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that? >> impact for consumers. >> we'll see. still to come, the u.k. triggering article 50 officially starting its exit from the e.u. strong words from the prime minister, theresa may, this morning. we'll go live to london when we come back in just a couple of minutes. minutes.
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uk prime minister, theresa may, has signed article 50. that formally triggers the process of britain's departure from the eu. our steve sedgwick is in london with the latest on this historic day for the u.k. >> reporter: absolutely. sarah, it is nine months for that historic referendum. nine months since june, last year, and we finally got the triggering of article 50. let's listen in to the historic moment when theresa may told parliament, we have started the process of leaving the eu.
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>> the article 50 process is now underway and in accordance with the wishes of the british people, the united kingdom is leaving the european union. this is an historic moment from which there can be no turning back. >> it was a very conciliatory speech in many ways. she did dangle the carrot about security and mentioned it 11 times. the security concerns of europe should be taken into consideration. we have some things you want as well. theresa may wants a trade deal. over mav half say they would li2 billion pounds up front first. not all bad news. mr. trump's confident, mr. farage, told me today he thought the uk could get a trade deal with the u.s. by christmas if we moved ahead now.
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>> steve sedgwick, thank you. the eu is a bigger trading partner than the u.s. it will be important. >> at the moment. >> on had historic day, for britain, we are counting you down to the clothse in a few minutes. let's get to seema mody. the german dax hitting a multi-year high. when we first got the announcement that uk prime minister may had triggered the brexit process, the pound spiked for a brief period of time. as for the ftse, stocks recouping their losses gaining around 24 points. in the meantime, executives are pressuring theresa may to secure a brexit deal that won't hurt business. ryan air, today, warrening that the uk could be left without any flights to and from europe after the brexit happens if both sides
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do not negotiate to prioritize aviation. airlines in the uk need to fiblize their summer schedules by march of next year. >> still to come, the quads are coming, one of the biggest asset managers swapping out humans for machines in a very big way. impact on the industry and your money is next. money is next. what's happening here? hey nicole, this is my new alert system for whenever anything happens in the market. kid's a natural. but thinkorswim already lets you create custom alerts for all the things that are important to you. shhh. alerts on anything at all? not only that, you can act on that opportunity with just one tap right from the alert. wow, i guess we don' need the kid anymore. custom alerts on thinkorswim. only at td ameritrade.
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the dow is down. breaking news. >> interesting remarks from the fed. eric rosen gren calling for four ratehikes or three more from where we are now. he says the fed should hike at every other meet ing in 2017. he says three more rake hikes should be their position. they should move from being data dependant to having a tightening bias. he says the strength of the economy justifies these rate hikes. also, calling for regular, though still gradual rate. gradual, sarah. these are the first talks. about a month ago or so he was saying three was fine. now, he has upped it to four. as far as i can tell, he is the first one outright calling for four. he does not have a vote in year. he was known in years past as a very dovish member of the federal reserve. now, he is going full hawkish on us, sarah. >> i remember when he was
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advocating for more and longer q.e. what a change in opinion here. that is going to be the debate, three or four. >> it was between two and three and now it is three and four. eric rosengren, we have a scale of 0 to 10. 0 being the most dovish. 10 being the most hawkish. he had rated a 3.8 and now a 5 or better. >> let's have more discussion and reaction. ben yandle and jpmorgan, and steven morrow managing partner. ben, bhawhat's moving the marke politics in washington or the fed speak? we have kind of ignored the fed speak in the last couple of weeks. >> you have had a bit of a moderation in the hawkish language. broadly speaking, you have had two successive rounds of changes in policy that have pushed bond
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yields lower. first, it was the march meeting and three hikes instead of four was soothing to markets and brought expectations down a notch and then you had the politics of last week. some element of up-side risk on fiscal policy taken out of the picture which pushed bond yields down. that is consistent with the correlation between stocks and bonds. favorably to the fed news and less last week. they have gone down in both instances. you are looking at what's been distorted most by policy. probably, bond yields at the lower end of what we would expect to be reasonable this year. >> steven, has there been an overreaction to the slipping of the trump agenda in terms of people's optimism over whether he will or will not deliver. does it matter for markets? >> i think the markets aren't just misreading last week but
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misreading many of the perceived policy catalysts coming out of washington, particularly on the fiscal policy side. you look at what happened with health care. that's not necessarily a proxy for all the other items on the frum trump agenda. in tax reform, i believe they are underestimated and favoring tax reform. i believe the markets are overestimating in terms of the magnitude and timing, financial services, deregulation, infrastructure investment and at the same time they are taking a big risk of discounting the america first agenda. >> one place all of this overlaps in the markets is the financials. we are wrapping up the month of march. it has been a tough one for the banks. they have been the hardest hit in the s&p and brexit and what the next two years are going to look like, not to mention deregulation. what do you do with the banks?
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>> that is consistent with the fact that bond yields have come down. there is a slight danger of taking a step back and putting too much emphasis on the political cross currents. they have been calibrating what is the fallout and what is the trajectory of the republican agenda and what are the odds of another populous victory in the french election? none of the wrrisks are mortal threats. they risk ignoring a broader, more positive context. when you think about financials and the link to bond yields, our view is still that bond yields drift upwards reflecting a positive, global outlook. >> you said you think the market is underestimating the impact of tax reform. does that mean you think we are going to get capital "t," tax reform versus a tax cut? is that because president trump is going to negotiate or get the
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more conservative wing of the party to fall in line z . >> it is more the latter but also more a factor if they learn the write lessons from the debacle that occurred last week, in some ways, we have a contrarian view if anything taking health care out of the equation for now almost makes it easier to get tax reform done. one thing i believe the markets are significantly not really understanding is that this whole idea that it gets $1 trillion harder to do tax reform isn't true as long as they leave the taxes that were imposed pursuant to the affordable care act out of tax reform. if everyone can agree on that, which is what paul ryan and kevin brady said on friday night was their plan, it doesn't make the collapse of the health care
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legislation, it doesn't make tax reform any more difficult. >> in light of article 50, are you over or under ku? >> we are overweight at the u.s., japan and mechlt. the uk is the exception that proofs the rule. a balancing act between what is happening with the currency and where you see a little bit of the hit from incompetent. >> thank you very much. many thanks to stephen. >> let's get to sue herera for the cnbc news update. >> good morning, everybody. officials say the driver of a vehicle struck a capital police car near the u.s. botanical gardens at the foot of capitol hill. the suspect then apparently drove towards other officers who opened fire. there were no injuries. the driver was quickly a apprehended. >> the fda approving a new drug for patients with multiple
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sclerosis. it is expected to be on the market within a few weeks. ford is recalling more than 440,000 vehicles in north america in two separate recalls. the first covers 230,000 fusion mid-size cars, escape, suvs and fiesta sub compacts to fix problems. the company also adding 211,000 to a previous recall to replace faulty door latches and one of crayola's signature crayon colors is headed for retirement. the company will amake the announcement on friday. the first time they have retired a color from the iconic 24-count box. ount box.
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changes here in human and algo rhythmic trading, our leslie picker and mike santoly join us. first of all, leslie, what are these changes and what do they mean is this. >> they mean, sarah, that stock picking is mard to do. few managers have been able to beat the market in recent years. yet, their fees remain steep. as a result, investors have been fleeing these actively manage portfolios in favor of index funds which has helped black rock become the biggest asset manager in the world with its ishares unit. they have a unit with almost $300 billion that has been doing stock picking and struggling. yesterday, they announced sweeping changes to that business that diminished the role of traditional stock picking in favor of technology. they plan to invest in technology and data science and fuse that with traditional investing methods and in doing so, they will be cutting their fees and letting go of some
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portfolio managers. it will save clients about $30 million annually. that's money coming out of black rock's pockets. most analysts don't seem too concerned. they point to the benefit black rock will get from being the first mover and say their competitors will be forced to follow suit. >> what is the santoli thought? >> there is a crisis in stock pick fg due it the old-fashioned way. you listen to the conference calls and try to build a portfolio stock by stock with people. it is an acknowledgment it is very difficult. cost matters above all. it is out of a concession by black rock that you are going to have to have these quantitative tools to allow to you do things cheaper. you are not distinguishing yourself by the performance of your degree and earning the fee in that sense. black rock is a uniquely
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positioned firm to do it. they do have the tremendously large and profitable low cost indexing business. i don't think there is a big hurdle cultural and psychologically for them to do it. for other firms, it might be tougher. >> it has been in discussion points in recent weeks and months. they would differentiate between what is happening in fixed income and commodities. they see it as a cyclical decline. it is not so easy to diversify to a computer oro b robotics. it is only part structural, this shift from individuals to machines. it is a big shift. you don't want to overplay it. within that, as well, it is something that when we are in a trend, in momentum, machines can come in and play a role more. clearly, lots of tech-heavy
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hedge funds like marshall ways, they have got that wrong. there is a structural element to it. more so, when we are in a current up-trend at the moment. >> it isn't the machines completely taying over, more lie cyborgs, data helping people to pick stocks. >> you still need people. you still need people in the driverless cars glchlt is it does feel like an inflex point. >> guys, thank you. >> when we return, walt mossberg shares his first thought on samsung's new galaxy 8 and much more. back in a couple of minutes. cou. and at $4.95, you can tr with a clear aantage. delity, where smarter stors ll always be. and at $4.95, you can tr with a clear aantage. ♪yo a crazy big fan of sports. and you don't waa miss a thing.♪ stream allour live ncaa marchma.
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let's bring in walt mossberg. is this going to be enough for samsung to blend apple's momentum? >> it is hard to say. i think it depends on people's faith that samsung has resolved its quality control issues. i say that rather than battery issues. it was really an overall culture of quality control that caused the problem with the note 7. the galaxy "s" series is their real flagship phone, their real bread and butter, a bigger selling thing than the note series, which is the one that had the problem.
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i think the taint will still affect it. we will have to see by how much. >> that's my question, walt. the last phone that had the battery issues got all these rave reviews to some degree, arguably through no fault of their own. viewers ended up with some egg on their face because some of these things were blowing up. in the reviews, no matter how good the phone is, are the reviews going to say, wait a couple of months and make sure these things are holding up. >> that's what i would say if i were reviewing it today. i will say it right here. i would wait. i would wait and see if there are any problems. my guess is they have worked very hard. one of the things they have done is to put a smaller battery than you would think in the smaller model, at least on this phone,
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and the same size battery in the note 7 book but in the bigger one with the much bigger screen. so batteries that are a little bit below what you would expect for the amount of pixels they have to push on these new big screens, which fens bphones bigs and i think they're just being conservative. so, it may be there will be no problems, but given the history, not only with the phones, by the way, but with washing machines exploding and other things, i think there's a quality control culture issue. they're working very hard to convince people they've changeded it, but i would wait. >> walt, what does this mean for apple? does this launch effect apple anymore or some ecosystem they have their law of customs
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regardless? >> obviously, apple's not immune to outside affects, but i don't think this affects them much. samsung has been doing good looking phones for a few years now that sell very well. thph don't outsell the iphone o any, samsung totally outsells iphone, but these premium individual model, none of them individually out t sells the iphone and so, and you know, it doesn't, it doesn't look different than whatn' we expect apple to be doing in the fall, which is cut out the bezels or most of the bezels around the screen. fit a bigger screen in a smallr physical phone. >> so while we were just showing a stock which are the of samsung and apple and both have had tremendous runh ups just in the la few months doing incredibly well and both near record highs. this despite the fact the smart phone market has matured. with samsung, they havee these explosive and banned phones. they had a bribery scandal, linked to the impeachment of the
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south korean president. is there something missing, i know you don'tet look at the stk chart, but you look at the culture and innovation behind these companies. what are investors seeing there that we're not. >> first of all, they're differental stories and may be different reasons, in the case of samsung, as wep, every problem you u just mentioned is true and the real uncertainty is what'sun going to happen to the company in this criminal situation in south south korea, but this company is much bigger than just the electronics piece. they build ship, buildings, ships, all, kinds of things. in the case of apple, apple's known to be engaged in a massive product to do augmented reality. and everybody expects a big totally revamp ed tenth anniversary iphone in the fall.
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so, i think that may be baked into some of this optimism about apple. they obviously just had a great quarter. >> so, walt, in your latest column, you talk about e-mail. it's not dead despite the rise of these e-mail services. spear fishing and those things wouldn't be a problem if e-mail were dead. what's next for it though an how do you think we should be thinking about it to keep ourselves safe? >> for most of us, i mean, there are some who still rely on it and use it for personal communication, but that's not true for most people an most of the age brackets. you have to think of it like your i postal pamail. you've got little stuff you're happy to find l in there. mostly stuff you're unhappy to find in there. some is junk and you want to
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throw itou away and some you wod love to throw away but you can't because it's bills. it's businessou communications d that's really what find in e-mail that r you don't find in there is message or facebook or twitter or snap chat. you find your bank communicating with you. your utility company, your local government, stuff like that. i'm shaking my head, this is snail mail. >> some of the stuff you hate to miss asat well. thanks.. >> thank you. >> always good to see you, walt. still to come, the highest residence west of the mississippi and it'sl onre the market. live from san francisco when squawk alley comes right back. . i'm only in my 60's. i've got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses,
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it is the tallest residence west of the mississippi. a new penthouse just went on the market in san francisco for a record breaking price and josh lipton is here with the details. and a hard hat. >> sarah, we are here at the penthouse at 181 fremont in san francisco. it just hit the market for what could be a record $42 million. now, before this, the record for a condo in san francisco was actually a penthouse in the pacific heights neighborhood, which sold for $32 million in
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2015, so what does the buyer get here? this penthouse u is 7,000 square feet. five bedroom, five bathrooms, two powder room, finishing touches are going to include gold sconces, brass door handles custom made in paris and a front door made in wood sourced from new guinea. this house sits 700 feet high in the sky. the real selling point though, the few. 360 degree views of the city and beyond. from sunrise to sunset. from here, you can see the golden gate bridge. the bay bridge, treasure island, but who has $42 million to drop on a penthouse? the selling agent for the building talked to us about potential buyers. >> i think just seeing who's been gravitating to the building. these are people who may be in venture capital and vef invested in tech on a very high level. a few well-known companies. i would say probably some on
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finance side or venture capital. now, this penthouse will be ready to move in by 2018. the other potential winner here is the broker for the buyer who could pocket a cool $1 million commission. guys, back to you. >> josh, are you putting your construction skills cowork? you look very official? >> i'm sorry. >> are you going to help build it. >> swrjust trying to be b safe. >> his drill son him. >> josh, go back to work. doing good work out there. >> that was absolutely awesome on every level. the only shame is the introe. only the tall west of the mississippi. we've got some pretty tall build here. got a great view. watching the markets as we head toward noon and the half. enterprise stock doing particularly well. hp enterprise, up nearly 3%. overall though, the dow not doing well.
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s&p at break even. >> getting slammed again. >> they're down. not getting slammed. down about 4%, the only interesting thing i'd point out today is that for once, financials and utilities are doing the same thing. almost every day for the last two weeks, they've moved based on yields. both down similar amounts. >> energy is on top. financial's on bottom. >> thanks. hand it over to scott and the half. top trade, the sector continues the outp perform and whether the hottest trade of the year is still a buy or too hot to handle. with us today, jim, stephanie, josh brown, pete, also, rob of ubs private wealth management. let's begin with the markets today. th

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