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tv   Squawk Alley  CNBC  July 31, 2017 11:00am-12:00pm EDT

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lockheed makes thad which was tested by the u.s. over the weekend. raytheon makes the patriot system which south core he'll upgrade. and boeing is still soaring on last week's earnings has the ground base mid course defense that protect the u.s. from a icbm attack. all are trading at record highs to day with that, i send it back to "squawk alley. guys >> thank you very much, morgan good morning, 11:00 a.m. at discovery headquarters in silver spring, maryland 11:00 a.m. on wall street. and "squawk alley" is live ♪
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good monday morning. jon fortt is back. sar sarah eisen at the new york stock exchange the dow setting up an all time high a seventh straight gain for boeing the other major averages are lower. the market is on base to conclude best month since february financials are the strongest group in today's mixed trading you're watching media m & a. we'll talk to the ceos of the companies later. boeing is helping out the dow. we're 100 points from 22,000. >> best month for stocks dow and s&p 500 since february best for nasdaq since january. other big milestones, crude oil up is 8% that really helped fuel some gains on wall street dollar is set for the worst month since back in january. losing another 2.5%. how does it all add up well, earnings are doing better.
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and that's certainly help stocks commodities are doing better copper made two new two year highs to day and the federal reserve is taking its slow and easy the question is do all the factors continue >> going forward, there are wobbles in technology. >> that's what i was going to touch on take a look at big tech. pretty much all in the red except for intel which is up very slightly. pretty much flat a lot of the earnings looked pretty g it's an interesting week as we look at apple and the others to come down the pike to see if that shifts sentiment on big tech. >> tesla i think is reporting earnings this week >> wednesday that's right >> apple go pro, it's a pretty big week for tech and media earnings. we'll keep our eye on all of that the big story of the morning is discovery. buying scripps networks for $12 billion in cash and stock. our david faber is standing by on the floor with special
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guests. >> yes, we have them, in fact. that's right david. the ceo of discovery and ken low, the sikh of scripps you have been long time friends and have talked about doing a deal like this in the past so, ken, the question to you, why now? why did you decide now is the right time to sell scripps and to follow-through and get the deal done? >> i think since the last time we were together, fortunately our companies continue to grow and we expanded internationally. we also very much like discovery. we pivoted from a linear television company to more of a digital content origination company. and now just seemed like the right time and i have to say it's a historic day for the stake holders, scripps family, publ public investors most importantly, david, for our employees. this gives them a much bigger company from which to operate. a platform to reach more consumers around the world so it's a great day for scripps. >> when you say it seemed like
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the right time, i mean, we all know is a tumultuous time in your business. there is concern that despite what you talk about as the popularity of your networks, they might not be part of these skinny bundles, the over the top networks that are being there. is that part of the reason why now is the right time? >> look, i think david said earlier this morning, bigger is always not necessarily better. but the quality brands that our two companies bring together, 8,000 hours of content we're producing a year 300,000 hours of content we collectively own, and then the fact that seven billion streams and video short form are doing this is a powerful combination and one that we i think sets up especially scripps for great success in the months and years ahead. >> you're going to be running this combination >> which is great. we have spoken before and we said maybe the third time is the charm. eight or nine years ago we took
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a look we love the company. we love the quality of the brand, the management. but the family wasn't ready. >> three years ago what happened then >> four years ago. we looked. i think both of us were not sure it was the right moment. but now i think is a great time. >> why >> we all have the same strategy we're about quality content and producing shows and brands for super fans so whether for us it's discovery or oprah, african-american women, id within crime, tlc, one or two channels from middle america. it's not about getting biggest audience it's about getting an audience that you can nourish that really loves you. and nobody's done that better than scripps with home and garden and food. and you put that together with us, we have 20% of the viewership in the u.s. and we have a huge amount of women that we can take to the market but more importantly, we have most of the quality brands on cable. and so as this industry changes,
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whether it's different kind of bundling, entertainment bundles, we have not just passionate super fans for each of our brands, but we have some of the highest quality brands, maybe most of the quality brands in cable in the u.s but also as we look to the future, it's about the seven billion screens out there. and from our perspective, owning ip that we can take around the world and all languages and having that ip something -- be something that people love and, you know, as ken said, we may be the largest media company in term of the quality and the quantity of ip that we have. we rent almost nothing we will own everything >> david, when we -- we talked in the past, of course the story you've been telling for quite some time has been about international. it hasn't been about domestic networks as much as it's been about, hey, 50% of the revenues come from overseas that's where you've been focused. this seems to be a departure, a doubling down on the domestic market i know they have operations in poland and uk tv
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really it's about here, isn't it >> it does two things for us our u.s. business, despite the decline, it is still a growth business it's been growing mid single digits now we think with the synergy question even grow it faster but more importantly, versus four years ago, they're much further stage internationally. they have a very big business in poland, tbm. they own 50% of uk tv. those are two of our big markets. so we're much bigger now we will be in the uk and in poland we make about a billion dollars outside the u.s. you look at the synergy that we have, just coming together, we should be in the 125 or 13 range. that is before we start launching think content to all of our platforms and so -- and maybe finally, you know, the question for us is do we take food and home and garden and own and travel and all of this ip, do we take it on channels around the world? or do we sell it directly? exclusively. >> so what is it going to be is it direct to consumer offering something you are
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thinking serious about >> i think, david, the world is our oister in the sense that because we own all of this content, just because we necessarily distribute our content in the past in the manner we have doesn't mean going forward. we can do some direct to consumer, you know, if you take something like food and you take french cooking or italian cooking, there might be slices and dices of the food network brand that you can do that might be targeted to a passionate base it doesn't always have to be on a linear platform. the same thing can be said for the home category. back to your comment about doubling down on domestically. domestically, we're going to have about 20% of the advertising market, 25 to 54 adults that's powerful. and david built this incredible infrastructure globally to take our brands and just speed them out. we just launched hgtv poland and that network is taking off to be able to take our brands, accelerate them, you know, plug them into david's infrastructure
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is real kly compelling. >> we could be in the very early stages eventually, i mean your kids, my kids, they're not going to be paying for a cable bill most likely. they're going to be using over the top aggravations, skinny bundles. you feel like now you have the bulk and the necessity so to speak that will make you a player in that world that's quickly coming >> we have the highest quality brands when we close on this deal in the u.s. and they're also low priced. we'll have 20% of the viewership and 8% of the money. sports on the other hand, you know, gets a multiple of what -- so we're a great buy for distributeors. and to date only thing that if you're a college student, can you subscribe to cable or get netflix. >> right >> $8.99 we could put together a skinny bundle together with other programmers or other distributeors that is, as i've been saying for a long time, that's $10, $12, $15 >> as long as it doesn't have sports it in, you're fine.
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>> right but if you look at the skinny bundles around the world this is the only country that has sports and other stuff in that. so eventually that will rationalize. >> do the revenue numbers stay the same can you really grow throw? you end up on a lot of the skinny bunld skinny bunld skinny bundles >> there are two objectives, be on every platform, every bundle, platform, every screen and the second is to figure out how to monetize it effectively most is b-to-b, it will be through the skinny bundles and some may be direct to consumer that's what we're doing with sports in europe and our pivot is about not just content that people want to watch when they can watch anything but what do we have that people will watch when they can choose anything and what do we have that people will pay for before they pay for dinner and that's why we invested $6 billion to $8 billion in sports
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and leader in sports in europe that's why we invest in kids in latin america. when you look at the affinity groups behind home and garden and food and cooking and diy, those could be very deep verticals. i mean ken has been a leader in doing this but together as a larger company, you know, and the analytics that you get from knowing who all those people are and having them consume the content and being able to bring with scripps has done brilliantly, bringing in the advertisers that want to reach them and having them be in for a premium to play in that space has been very, very economically effective. >> ken, viacom competed aggressively here. i'm saying that you don't have. to i'm curious whether you were making a decision about whom to sell the company to, was it only price? why not via come >> i'm not going to, as you said, i'm not going to speculate and speak on anything that may or may not happen in the past. only focusing on the future. the real reason we're here today talking about this merger is as
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i said at the top, it's great for our shareholders this was approved by the scripps family puts the scripps family now back in business with john malone who they own cable systems with years ago. with the newhouse family who they were partners in the newspaper industry and also at the end of the day the family like me believe this was the very best home for our employees. the opportunity for our employees and our brands to do things with them frankly that we would have clalchallenges based fact we don't have the international infrastructure it's the best deal and the best partnership. >> the thing that makes -- >> can i ask one more question though >> financially -- >> go ahead. let me ask synergies. $350 million is the number you using. frankly, a lot of people think it's low, david. it has to be a key driver. >> we think it's low we did a short diligence period. that's what we have our hands on now. it's a one over one company. we do a lot of the same things
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but when we look at this the thing that is really attractive is not just the cost synergy you put in this cost synergy and we think it should be higher, you get -- we're buying this company for our multiple >> right it lowers the multiple although, frankly, investors don't see that you thissed the stock is down 6%. >> we're enthused. we think there is more cost synergy and more importantly, there is great revenue synergy for us there is great strategic value we may be the largest ip story telling content company in the world that turns -- >> you're not going to spend as much money as netflix on content? >> we'll spend about $3.5 billion on content. but in after we acquire this asset, a year and a half to two years later we'll be an enterprise value of $40 billion and we'll have a balance sheet where we are leavered less than 3 1/2 times and real flexibility with that balance sheet to invest in more of our assets or
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to go out and buy more stuff that we need so that we come out of the terminal tunnel >> who is going to be the big winners? >> we think with this ip together with tlir creative team, everything -- >> you really reposition the company for the future day with this deal? >> we think we v we couldn't be more excited about being in business with ken. >> i'm very excited that you guys made the trip down here so thank you >> great to see you. >> and you ken lowe, david zazlov joining us on the big deal day carl, back to you. >> all right david, thank you very much our david faber on the floor whnchts we come back, the first day of trading after snap's lock up expiration. we'll tell what you that means for the stock next and it's the last trading day of the movement take a look at the winners for the nasdaq so far. we're back in a moment
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with speeds of 250 megabits per second across our entire network, to more companies, in more locations, than centurylink. we do business where you do business. ♪ ♪ snap's lockup on shares expiring over the weekend leaving 400 million shares available for sale in today's session. we're watching this development and joins us now with more from los angeles. jew julia, good morning. >> with the 400 million shares now available to sell, snap shares hit an all time low this morning down as much as 5% they have bounced back the stock now off just fractionally but snap shares are still off about 50% from their all time high back in march just shortly after the ipo. now those 400 million shares that became available today are owned by early investors including the venture partners and general catalyst group
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the floodgates will open even more on august 14th. four days after earnings employees will then be able to sell 782 million shares. and then at the end of august, another 20 million shares will become available to sell according to j.p. morgan now for some comparison, twitter shares dropped 18% on the day of its lockup expiration in may 2014 facebook shares actually jumped 13% on the day of its lockup expiration in 2012 investors are turning attention to snap earnings the pressure is definitely on for snap to show user and engagement growth in the face of facebook reporting better than expected results having successfully copied some of the snap's most popular features steve full with the $22 price target on the stock saying contrary to current sentiment, we do not believe the wheels are falling off snap's user growth story. piper jaffray warns that instagram to reduce the
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uniqueness of snapchat's offering and limit the user growth we'll have to see how that rivalry pans in and out snap's numbers next week. back to you. >> thank you, julia. let's dig into that. for more on what this means for the stock, let's bring in michael graham, senior equity analyst and jason helfstein. he joins us on the cnbc news line let's start with you snap close to half of its ipo price. are people assuming this is twitter all over again is the lack of shareholder rights kind of affecting hopes of a rebound here? >> well, often you can't see these lockup expirations be more of a bottoming event for stocks than a negative event. you know, there's a lot of negative sentment going into an he vent like this it does take some time usually for the shares to get into the market. i think the more important thing for snap is to show some
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execution when they report next thursday on the fundamentals and the two most important fund t fundamentals are user growth and revenue. they disappointed investors with the q-1 user growth numbers. it would be really good for the stock if the company could turn that around a little bit heading into q-2 >> jason, you've got an outperform, i believe, still on the stock. $23 price target what is the bold case as far as what snap can say in the next earnings call that is going to get you closer to where you think the stock is going >> the question is consensus and expectation from down and up they're looking for about $189 million revenue which we think they can beat. maybe not by a lot but they can have the headline beat dau growth expected to sloechlt the question is it flat as opposed to just slowing?
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i think when you take a step back and listen to what facebook said on the call, shorter length video ads are more effective that's what snapchat needs to convince advertisers to create because they're such a small player relative, they're not going to be the one to move the market it's really facebook and google. but we see initiatives happening at facebook and google that should cause advertisers to change behavior and then snap is a second beneficiary >> michael, as we look at this comparison that is growing between facebook and snap, is that at all avoidable? i mean so many of the metrics are going to be similar between the two companies and people want the stock to go up. they want it to be more like facebook, right? >> i think to augment what jasonjaso said, the advertising revenue
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will follow the eyeballs they need to get the user base growing again. one of the real issues in front of snap that facebook never had as going through the ipo process and going through building up the ad business is that snap has a really foremidable competitor in facebook and in instagram right in front of them as they're trying to build their business instagram stories in a very short amount of time has $250 million daily active users relative to snap's q-1 number of 166 or 168 so that's a real head wind, a competitive head wind that snap faces for audience >> yeah. i was going to ask about that, jason. and specifically as instagram stories grow the user base, are they taking the 25 and under crowd which was so valuable to snap chat and to advertisers and partst bull story here >> as far as we can tell, no they're really growing more with older users which makes sense. snap's products as far as we can tell still challenge older
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users. but they'll tell you that is not what they're developing for. and really what they're trying to do is drive more engagement with the existing users that they have because it takes longer for them to monetize the user until they learn about you, i mean we talked to some agency who's say they want to track 140 different data points before they are willing to spend a dollar of advertising with snap. so there is just a lot of work and a lot of time that needs to go into that and ultimately, that's what snap is focusing on building, an ad platform that is comparable to the larger companies but they're not there yet. >> one last question, michael, for you on digital ads in general and the market for digital ads. there's been more scrutiny about large advertisers in, this case procter & gamble is tossed around a lochlt sort of reconsidering their spend on the platforms that roi maybe isn't as compelling as it was a couple years ago. how do you think about that issue? >> last year digital advertising by most estimates surpassed
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television advertising and it was a really hallmark moment for the advertising industry we believe that digital is growing two or three times faster than the whole ad market and that within digital social is growing twice as fast as digital overall which includes search and display and some other advertising buckets. a lot of times when you see the big advertisers coming out with, you know, cautionary tales about different media outlets, they're usually negotiating. when facebook is going through the ipo process and very large advertisers were, you know, saying they weren't going to advertise on facebook going forward but they clearly did and came back because the ad units work they're effective. there's a good roi i think for most part the outlook for social aej digital really strong. >> all right we'll leave it there michael, jason, thank you for joining us nbc universal, parent of cnbc, did make an invest in snap's ipo. >> when we come back, why
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tesla's ceo elan mus is being calling the next few months of model three manufacturing "production hell." stay with us important than your health. so if you're on medicare or will be soon, you may want more than parts a and b here's why. medicare only covers about 80% of your part b medical expenses. the rest is up to you. you might want to consider an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like any medicare supplement insurance plan, these help pick up some of what medicare doesn't pay. and, these plans let you choose any doctor or hospital that accepts medicare patients. you could stay with the doctor or specialist you trust... or go with someone new. you're not stuck in a network... because there aren't any.
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because the time to think about tomorrow is today.
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. boeing hit another all time high today july gains are now about 24% leading the dow by a mile. it's up seven days straight for better than 15%. mostst dow's gains for the past week have been only boeing and then today j.p. morgan takes the target to $20. they're estimating $280 billion. >> i'm glad you brought up the analysts i'm looking at how the expectations and calibrations have changed because they missed this move. back in january the average price target was $170. and it has climbed steadily as the share price has climbed. now it's at $250, a little higher than we were now. this is the dow's best performing stock of the year, up almost 60% double of that of apple. and also --
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>> this is tesla territory. >> this helped the dow manage to avoid this tech fueled slum thap we've seen over the last few trading days and it will be interesting to see if it can continue to do so with names like apple lagging behind. >> back in january the president was freshly attacking boeing and also tacked apple. >> buying opportunity. >> yeah, for all of them it seems. >> boeing is the best dow component at the moment. we'll get a t resqwk le aerhis.lomo "ua
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good morning, everybody. i'm sue herrera. here is your update at this hour former marine general john kelly was sworn in this morning as white house chief of staff president trump and kelly appearing before reporters in the oval office. the president heaping praise on his former homeland security secretary. >> we just swore in general kelly. he will do a spectacular job i have no doubt as chief of staff. what he's done in terms of homeland security is record shattering you look at the border, you look at the tremendous results we've had and you look at the spirit >> dozens of people gathering near south korea's presidential palace to protest against the deployment of terminal high altitude area defense launchers. they called on the government to withdraw the plan to install them and anti-government protesters clashed with police in ka rack as on election sunday the venezuelan electoral authorities say better than
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expected eight million people voted to create a constitutional assembly given president maduro unlimb itted powers. the turnout figure however has widely been disputed by the opposition that's the news update this hour back downtown to you, sarah. >> all right sue, thank you very much now let's send ut over to seema mody for the european close. >> good morning, sayer yachlt mixed performance for stocks the europe wrapdz up the final trading day of july. but just check out the outperformance of the ft-se 100 fueled by the miners such as anglo-american take a look at glencore, all having a strong day. why? data showing chinese construction activity rising to the highest level since december of 2013. that helped lift iron ore prices to a four month high you also have economic data on the horizon. it is well below the ecb's target of just under 2% but still better than expected unemployment in the region falling in june to the lowest
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level since 2009 a big story this month has been the euro extending the gains to a fresh 2 1/2 year high against the green back the july rally sparked by expectations that the european central bank will start to scale back on stimulus in the current months euro up 3% in the dollar against july but the stronger euro impact on exporters, a major reason why the european stock 600 underperformed the s&p 500 this month. keep in mind though data that traders have been chewing on, reuters monthly asset allocation survey of 49 funneld managers s they lowered to the highest level in two years you have to wobder if that happens if the euro continues to strengthen on the earninged front, three names to keep an eye on. hsbc getting a lift after posting a 57% jump in second quarter profit and announcetion plans f-- announcing another two billion
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share buy back heineken is prompted by warm weather. lastly, sanofi, the french drug maker out with quarterly results and raising full year guidance due to growth in vaccines and consumer health care sarah? >> all right seema, thank you meantime, here in the u.s., another all time high for the dow. on track for the fifth record close in a row index is on pace for the best month since back in february joining us on the cnbc news line, mark faber, publisher. marc, good morning. >> good morning, thank you for having me on your program. >> thank you we know you're bearish and have been expecting another crash in stocks have not seen that given what we do see though, record after record, better earnings, interest rates moving up a little bit slowly and higher confidence, something
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that president has been tweeting about all day. have you changed your mind at all. >> of course the rates increased. sfo stocks have moved up but equally don't be overly optimistic the market is up here by 10% on the s&p 500. the transportation is up 2%. but the euro is up 12% against the u.s. dollar. so anyone who bought u.s. stocks with euros hasn't made any money yet. it's a high stakes sector. if you look at the market, there are lots of stocks that are lower. and significantly lower than they were at the highs so it's not an all clear signal. and i just published a report even if the market were to move higher and i think we're seeing
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it already there is a change of leadership. it's like today. the nasdaq and nasdaq 100 are bound. but the dow is up. in other words, we have something similar like in 1999 and 2000 when the nasdaq stocks were performing so well and the old economy stocks had been left behind i think now the old economy stocks are coming back and the commodity related stocks and by the way, things you're talking about is wonderful performance of stocks. may i just remind you that the s&p 500 is up 23% since january 2016 gold is up 20% and this year gold is up 9%. but the gold etf is up 80% since january 2016
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so i mean you have to put things into the proper relation >> it's a lot of stats you memorized there. >> i beg your pardon >> it's a lot of statistics you memorized there. and i get your point, marc i guess i'm wondering why. what are you so worried about? for years you've been sounding the alarm on qe, easy money policies the fed is navigating a slow and pretty steady path toward normalization. yes, it's early. we've only seen a few interest rate hikes and just starting to talk about the balance sheet but what is that has so you freaked out here >> well, i think the issue is really that the rates have been suppressed by central banks with asset purchases. now okay, since 2016 the fed hasn't increased its balance sheet. but they transferred the mandate
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to print money to the ecb and the bank of japan with the purchase assets and the fund manager who sells the $100 million worth of bonds to the doj or to the ecb that has money and they go and buy u.s. stocks. so basically, we have a very artificial environment with interest rates on sovereign bonds in europe. and in that story, a bobble if you ask me are interest rates on bonds in europe are extremely low, they're actually in many cases italy has lower yields than the u.s. anyway and spain has also a lower ten year yield than the u.s. so the markets are very distorted. and one day there will be an adjustment >> marc, you're not the only one who is skeptical about equities.
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there have been others i wonder, howard marks wrote a long note last week. paul singer says he is going into cash. are the other skeptical views, i wonld cher one is closest to your own thinking? >> well, i think they're all close. i want to say this i have a very simple asset location 25% in real estate my real estate is mostly in asia 25% in equities. i have mostly asian equities but i vote last year and recommended this many times in newsletter that european equities were much like expensive than u.s. equities and would outperform the u.s. equities now this has changed a little bit in the last few days in the
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sense that i think european equities, dax is already down 5% so now i focus more on financials in europe i think the financial sector is reasonably attractive. relatively speaking. and then i have some precious metals and gold shares and i have this equity exposure of 25% i don't change that asset allocation a lot but i'm aware that there is a risk because equities go down, then obviously also my bonds will likely go down. >> marc faber, we have to leave it there the comments are already pouring in as always when you appear thank you for sharing your thoughts always good to check in with you on the gloom, boom, and doom report that is marc faber >> and tesla's model three shipping over the weekend. our phil lebeau joins us now with more on elan musk's comments from the delivery event. phil >> being in production hell?
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that got a chuckle or two out of folks. we're going to see tesla go through is a ramp up in production that will test the company. they did deliver the first model threes on friday night at their factory outside free monlt, california they also updated the reservation book now having more than a half million reservations for the model 3. they're going to start working through. that the production target for next year is the one that people are focused on tesla says they intend to build 500,000 vehicles next year that's about a five fold increase from where they are this year. the initial model 3s are the long range versions. the ones that sell for $44,000 here's elan musk at the event friday night talking about the challenge facing tesla when it comes to increasing production >> how do we build a huge number of cars? i mean, frankly, we're going to be in production hell.
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welcome. welcome. welcome to production hell that's going to be where we are for at least six months maybe longer >> and everybody was laughing about the comments but the truth, is this is really the challenge time for tesla can it increase production and what happens as it runs through this increase here can they keep the costs relatively in check with expectations guys, one other note from friday night, had a chance to drive the model 3. it's impressive. this is a vehicle that's going to get a lot of attention, especially from people who, perhaps, in the past might have been looking at a bmw 3 series or mercedes c class. they may say, wait a second, for anywhere in that $33,000 range, let me take a look at the model 3 as well. but again, the question is how quickly can they start working through the backlog of about a half million reservations? >> yeah. and how patient those customers will be, phil. that's for sure.
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our phil lebeau watching tes l.a. a lot more from our interview with the ceos of discovery and scripps. first, rick, what are you watching >> you know, we had a pretty good gdp number last week. the president thought. so but the problem is maybe it isn't as good as we remembered it and that's what we're going to talk about after the break i thiy nice girl... you never got the brakes looked at? oh yeah. no. at cognizant, we're helping today's leading manufacturers make things that think and do automatically. imagine that, a world of new digital products and services all working together for you. can i borrow the car when it's back? get ready, because we're helping leading companies see it- and see it through-with digital.
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we'll debate whether now is the time to get out of that high flying social stock. plus, media insider ross levinson on whether the snap lockup is a buying opportunity or not we'll debate apple ahead of the report tomorrow. and the financial stock barons says is about to rally big time. halftime report as i said, noon eastern. carl, we'll see new ten minutes or so. >> scott, thank you very much. let's get over to the cme group and get the santelli exchange with rick. >> thank you, carl you know, the last quarter q 2 we obtained the most recent advance look for gdp up 2.6 the previous quarter was 1.5 to 1.2. the averagest two, 1.9 now the president and any president, of course, will always be the end desk in a long series of desks.
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that's where the buck stops. so if the economy and the markets aren't doing well, the president will get blamed. when the markets are doing well, i it this president should get credit but maybe, maybe ought to keep a little more silent on the topic especially being happy about 2.6 gdp. it isn't about the level of gdp on any given quarter it's the fact that we haven't had sustainable growth much higher than 2.75% since before the credit crisis. let's go to the facts here, shall we here's all the quarters since 2007 that have had 3% in any given quarter. 2009, 204. 3.9 if you add all four quarters, you had 2.p 7. 2011, you had a 4.6. you have 1.825 2013, two quarters above 3%. we had a 2.67% gdp
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4.6 and 5.2 in 2014. 2.725. finally, the last quarter that we had that a 3% higher was q-1 of 2015. and that gave you 2% the reason i bring this up is it isn't about celebrating 2.6% i don't think it was very smart to celebrate any of these considering the one thing that i remember from 2008 to 2016 is that we didn't have one year with 3% growth or higher now listen, we know that d.c. loves to spend money and they will always love to spend money. and they most likely will always like to spend more money than they collect so the only way to deal in a world like that is to get the engine under the hood to run better so there is more to split up the more we go into the red and try to spend, the more we slow down the machine even farther. 3% growth in my opinion is
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possible and it's possible under some of the plans that the current president and his administration are trying to legislate. and i've said this before. it is impossible if we don't those are our choices. but in the end doing less to yield more growth is not as easy as it sounds. back to you. >> rick santelli in chicago. thanks, rick when we return from apple to alibaba to sprint. a deep dive into the investment of softbank's vision fund when squawk continues ntil 65. now is a good time to get the ball rolling. medicare only covers about eighty percent of part b medical costs. the rest is up to you. that's where aarp medicare supplement insurance plans insured by unitedhealthcare insurance company come in. like all standardized medicare supplement insurance plans, they could help save you in out-of-pocket medical costs.
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♪ ♪ here with an inside look at what is an increasingly fascinating empire wouldn't you say? >> increasingly fascinating and increasingly ambitious he already built his empire and it includes a lot of things that are huge but he says he's just getting started. he wants to have a 300 year legacy so the vision fund is supposed to get him there. now it's scope and ambition is completely unprecedented $93 billion raised so far. five years to deploy all that money and a preference for big deals ranging from hundreds of millions to a few billion. even could be more now soft bank but in 28 billion itself the saudis 45 billion. it also has investments from am,
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qualcomm among others. it's still early days but have a look at what is likely to be included in the fund the vision fund only spent a few hundred million on two start ups but the names on the right side of the screen are expected to be offered to the fund. now what they also have in common is the task to drive the next stage of the information revolution now you also have start ups, i know you guys have been talking about this uber has been a big name connected to softbank. that deal is dead. what it comes down to the vc and investment community has mixed feelings about this fund on one hand it could solve their unicorn problem. let them unload text start ups waiting long tore two public but on the other hand awareness from some investors now the vision fund is bigger than all the investments from american vc
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firms in 2016 combined it's just over $70 billion this could further inflate the market and crowd out competit s competitors. >> a lot of people were concerned that this is going to drive a bubble in valuations he is just spending way too much money at once. >> you're going to have to stay close to the administration. we've seen him do that so far. >> very good point staying close to the white house. >> this is a president that embraces the u.s. invest
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>> he promised that 50 billion of those dollars are going to be coming into the u.s. so his empire i think is just getting started. >> we just talked to one last week we talked to the agricultural start up and what's interesting too is is the intention of the fund from machine learning to artificial intelligence to big data what is the focus? has masa had experience in managing this amount of money and some way maybe his track record he got really luck inquiry alibaba but what else is there >> it's going to be a good story to watch thank you. dow is up 80 pnts w.oino squawk alley is back in a minute and it's also a story about people and while we make more e-commerce deliveries to homes than anyone else in the country, we never forget... that your business is our business
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the united states postal service. priority: you
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11.9 billion discovery shares are feeling impact here. >> they're getting slammed down almost 8%. what is interesting here is the
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changes that represent something that david talked about in the paid tv industry together they have 20% of ad supported paid audience in the u.s. they had a big female viewership, combining tlc, own, food network all under one roof. it will be interesting to see how they can compete. >> let's get to the half >> welcome to the halftime report our top trade this hour slashing facebook the stunning downgrade to sell the analyst that made that call is with us live today. is it time to get out of this market darling with us today joe, jim, josh brown, steve is here as well also from los angeles today is ross levinson. the media insider and cnbc

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