tv Closing Bell CNBC October 4, 2017 3:00pm-5:00pm EDT
olled in the only medicare supplement insurance plans endorsed by aarp. don't wait. call now. thanks for watching power lunch, closing bell starts right now. hi everybody, and welcome to the closing bell i'm cal le evans here at the new york stock exchange. >> and i'm bill griffith breaking news this hour, you saw president trump just meeting with first responders in las vegas in the wake of that tragic mass shooting. the president is also expected to make additional comments later this hour. and we'll bring you that live as soon as that gets under way. probably in about 30 minutes here we are told >> also, the former equifax ceo facing another tough day on the hill as yahoo announces every
single one of its accounts was hacked the ceo of palo alto networks will join us to talk about what can be done to stop these security breaches. >> protecting our financial system from hackers. bank of america's chief operations and technology officer will also join us. talk about what moves she's making to keep customer accounts safe in fact, kathy was just named the most powerful woman in banking for that reason. she'll join us coming up here. >> looking forward to that but first, puerto rico bonds plunging after president trump plenged to wipe out the island's debt following the devastation kautzed by hurricane maria >> we have to look at their whole debt structure you know they owe a lot of money to your friends on wall street and we're going to have to wipe that out that's going to have to be -- you can say good-bye to that i don't know if it's goldman sachs, but whoever it is, you can wave good-bye to that. >> that was last night then this morning, his budget chief mick mul vany tried to walk back some of those
comments leslie picker has more on whether this would even be feasible les si >> hey kelly, that's right, the question is can president trump simply wipe out puerto rico's debt and the short answer is not really the president of the united states oversees the eight-person board that is managing puerto rico's resfruring process and trump does have the power to remove members for cause, but he may not want to. the board has already been pretty anti-creditor according to a note by btig and given that the oversight board has already been pushing for steep haircuts as it is, it may not be necessary to replace anyone. now judge laura taylor tshwane is overseeing the current negotiations, she's unlikely to let trump's comments influence her decisions as well. now another thing to keep in mind is that it's not just the goldman sachs's of the world that own the debt. it's not just the hedge funds, in fact, it's estimated that they only own about a quarter of the debt
the rest is held by individuals. either through mutual funds or brokerage accounts thousands of puerto rican residents purt their live savings in bonds, it would be detrimental to the puerto rican people as well perhaps the best option for the puerto rican government and b d bondholders alike is a bailout as you mentioned, mick mulvaney today said that's not going to happen, guys >> but, here's what's interesting about this, leslie, are they exploring some way of reducing puerto rico's debt levels, and are they going to do so by kind of turning to the people holding the debt and say wooerg sorry, this just isn't worth what you think it is >> well nancy pelosi came out today and said they should be taking out a loan to cover the puerto rican debt obligations. now there are a lot of things being kicked around on exactly how the hurricane and how the relief efforts will change, you know, what we're seeing on the bonds side but it's interesting, and something to really pay attention to moving forward is
the type of aid that puerto rico receives because that's something that's really important for the bondholders. a grant, of course, is different than a low interest loan a low interest loan would affect the current bondholders because it would need to be paid back first before the current debt obligations. it's almost like taking out a credit card to pay previous debt things could get really tricky if we start to see more debt pileden to more debt but that's something that a lot of the bondholders are watching at this time >> i just thought it was interesting that when mulvaney had the chance, he specifically said we are not going to bail out the bondholders, right the point is that he kind of reiterated the president's remarks by suggesting that if puerto rico doesn't have the resources that u.s. tax payer won't either >> exactly well, we're looking at about $74 billion worth of debt that would need to be bailed out in order to make those bondholders whole. and they're looking at haircut os than. that's not what they're expecting anyway so it's not surprising they
would be red sent to completely bail them out. >> all right, leslie, thank you. checking back with you on any new developments in that regard. leslie picker in san francisco getting to our closing bell exchange, stop me if you've heard this before, the dow in record territory today up 25 points right now peter from the lindsey group is part of our exchange today we have kenny from o'neil securities here with us at post nine and rick santelli is at the cme in chicago peter, you're the deep thinker on things like this. what do you think of the possibility or the mechanism that would be needed if they wanted to forgive some or all of puerto rico's debt and, you know, what did you think of the market response to it >> i was rather alarmed to hear that unilaterally the president hinted at he can just wipe out the debt there's restructuring talks that have been going on for years now with almost every bond that puerto rico owes to creditors. and i expect that to continue. so to -- there is a back and forth. i mean, there is a bar on lender
here that should work out terms. now, certainly major haircuts are going to be taken by those that own this debt, but just to say willy nilly we're going to wipe it out with no process involved, i think would be a dangerous precedent. >> and there is, kenny, meantime the whole process working it's way along trying to figure out how to administer the debt of puerto rico. as many pointed out, the president may not have the authority to do this, what's your sense >> sometimes he speaks really before he thinks and saying you're going to wipe out the debt probably is not going to happen and quite honestly, listen, let's talk about municipals, that's like one of the safest bets in the country. i think as peter said, people may not be expecting to get 100% of their money back, but i think what trump did do was he set this up for the conversation to have other bondholders, you know, kind of come to reality that listen, the issue is not, you know, the situation is not good down, so we need to really come together and figure out how we're going to make this happen. wiping is out's not going to
happen >> but as a negotiating tactic i think he set it up >> he said goldman sachs or whoever you are. >> but i think that's, you know, that's his style right or wrong, i think that's his style, but quite honestly, if you play in that distressed space at the moment, you might look back on this with this puerto rican debt trading down at 35 today and go oh my god, what a massive opportunity this might in fact be >> with echoes of the greek debt -- >> thaergt. >> in our memories as well rick, what do you think of all of this? >> listen, i'm from chicago/illinois so, there's an upside if he does that because i'm sure our governor have really big hats they wear that will be like this going to d.c. it's a horrible idea it's a terrible idea and for the president to say this so flippantly, listen, i shouldn't say that, i didn't see it firsthand, but i think it's terrible and he needs to refrain from issues like that it takes away from some of the good policy that he's trying to legitimate, at least indirectly,
congress of course is at the helm on those. but yeah, listen, what is it, 70 billion or 3 point something million on the island. it's been a disaster for a long time that is never the solution it really -- it's one of the things i've always complained about by the ecb, whether it was some issues with spain, italian, banks, the grease that you already pointed out. those aren't the ways. those aren't the ways to find a solution that makes economies stronger and society better. okay so, i don't know why he does these things as far as the markets today, continue to be so impressed. go on. >> one thing, i'm interested this is how you're taking it, i know that this isn't fair, but if you were to say going forward that the president of the u.s. wants to avoid a puerto rico to be able to e mess $73 billion that it can't service in debt. should they be put on notice and is it better to avoid the moral hazard of chicago and other places saying look, you
know, we all know, all right, we may have racked this up a little bit, we're going to get help when we need it. would it be better to send that message out there, i'm thinking all of these places around the country and saying no, you're not, if the bondholders want to take a risk, but don't expect we're going to come to your rescue >> listen, it always gets dicey and our channels brought this up today. there's a lot of people that don't like that go on financially that arrive at some form of bailout scenario but the issue is, mutual funds, teachers, firemen, all of us have moneys in areas we don't really tangibly know exadirectl but they all lead to issues like it it can't be done, peter nailed it, there's a process that's been ongoing hurricane, you sur of that to some extent. peopled me to to work it out especially with the bondholders. but i think this is a case where the president's better served, keeping his mouth shut >> peter, i'll give you the last word on this >> i agree with rick
>> what do you think realistically will happen though >> i think the restructuring discussions will continue. bondholders are going to take a major cut and i don't think anything he said is going to disrupt that process to be honest >> peter, let me just ask you finally then, when we're talking about other parts of this country and puerto rico going forward, and the amount of borrowing or overspending they're willing to do, does this then mark a water shed moment in terms of reigning people in in that behavior or not >> bondholders have to start becoming more careful about who they lend money to >> yeah. >> rather than a traumatic search for yields, there has to be a little more discrimination in who they're going to lend money to if there was, well maybe these municipalities wouldn't be spending so recklessly and they wouldn't be in this position anyway i mean -- >> and peter, peter, what entities in the country, what
entities in the world have forced investors down this dark alley of invest kpg. >> the federal reserve >> i rest my case. >> i agree with peter. >> okay. we've got -- we're all singing kumbaya here, i guess. all i will say is i'm having major day that jew today, here we go again. peter, kenny, rick, thank you guys see you later. and the rally for the most part continues it's kind of a mixed day where not everything's going higher you see the russell doubling transports down today, but right now you've got the dow, the s&p, and the nasdaq moving higher >> once again. >> once again. up next, we'll head live to the cambridge cyber summit palo alto network's chairman and ceo mark mcglauf lib will tell us how they're cracking down on data breaches. bank of america's chief operations and technology officer kathy bessant says how
they're protecting customer's kkts we'd love to hear from you lots to talk about today you can reach out to the show on twitter, facebook, send us an e-mail callen, av y wt knywhrpouanto do you're watching cnbc, first in business worldwide win an uncertain world?k predictable income pgim sees alpha in real assets. like agriculture to feed the world. and energy to fuel its growth. real estate such as e-commerce warehouses. and private debt to finance transportation and infrastructure. building blocks of strategies to pursue consistent returns over time from over $120 billion dollars in real assets. partner with pgim. the global investment management businesses of prudential.
welcome back with the dow up 21 points looking at another record close today, potentially janet yellen making comments a at community banker conference our steve leishman has the details. >> thanks kelly. fed chair janet yellen speaking in st. louis, will say that the fed is trying to reduce the regulatory burden on the small banks. it's been a recurring theme from the fed chair and she says banking rules should be tailored to the size and complexity and mission and role of the individual bank. just more more thing we been talking about the race to replace fed chair or reappoint her from the president and i want to get you the results. there's the predicted results. former fed governor kevin worsh is leading the pack. i understand it's correct to say his star has risen, but no particular priority here yellen remaining as fed chair,
16% is up a little bit and kohn one name you don't see is neil, you guys will remember that jeffrey gunlack, the bond king so to speak is the one who said he thinks neil because of his easy money policies should be the next one and administration source told me, neil, not being considered for the fed chair job. so his star set from a 25% probability all the way down to two on that report >> oh, clever point. >> there you are. >> thank you, steve. >> thanks, steve >> see you later round turn for neel kashkari today, i guess richard smith was back on capitol hill today this time testifying in front of the senate banking committee where senator elizabeth warren had some choice words about the company's data breach. >> a company like equifax that has sensitive, personal information on most americans should have at best data
security in the industry, and instead, it has the worst. >> and we also learned that yahoo now thinks all three billion accounts were impacted by the 2013 breach previously thought the i remember in was only one billion. so can companies do more to protect consumer data? joining us now from the palo alto network's chair ceo mark mcglauf lin, thank you for joining us >> thanks for having me. >> do you sort of believe, you know, buy the sfroir equifax that this massive breach was caused by one employee and one system error >> well, i don't know the details of it, i think what we're seeing more frauchb an attack perspective, he attacked methodologies are known. it's happening more and more often. they may be not known and that the companies are capabilities found it somewhere they're not getting propagated in an automated fashion fast enough so a lot of these kind of
situations, the answer to the problem is already figured out, but the entire environment doesn't know it fast enough to stop the damage from occurring and i think we're seeing that more often >> is that going to improve or are we just going to have to still be playing catch-up with the bad guys >> it's going to improve it is improving now. so the answer to a lot of these kind of questions on prevention, how do you bring automation and leverage and orchestration and all the capabilities that the bad guys bring to the problem because of the cost of power going down how do we harness those advantages for the good actors and that's changing rapidly with the advent of cloud computing for example and analytics and artificial intelligence. it's actually possible now to bring those things to bear in such a way that if you do have a good answer to a security problem, that it can be, it can be automatically propagated across massive, massive universe of capability sets prior to the bad thing occurring in the first place, or if it does happen to
minimize the damage. >> having said that though, given -- i can't imagine how difficult it must be to try to think like a bad guy and anticipate where all of this -- where they're going to come from next you know, i lock my front door every night before i go to bed, but realistically, if anybody wants to get into my house, they're going to get into my house. is cyber security, and don't take this the wrong way, is cyber security when we talk about just an illusion when it comes down to it >> no, actually i think if the mentality that bad guys is more of they're going to do the easiest thing they can do. and most cases, a lot of these are businesses they're running criminal businesses, right? so they're going to go after the highest rate of return for the lowest cost. they don't have to be completely sophisticated, what they have to do is find a problem that will costs them very little to exploit that problem so, they're going to be looking to do that all the time. i think lots of folks in the industry, of course, spend time thinking about what the next
most sophisticated attack is going to look like which is a good idea to do this that. in turn they may use the least sophisticated attack factors because legacy capabilities sets in companies are so far behind the curve on that they can exploit them for very little cost. >> oracle said it was unveiling an automated data base, to your point about automation earlier it can instantly patch itself while running, saying we have to automate our cyber defenses, you have to defend yourselves without taking all of your sisters offline, that was larry ellison, is that something that palo alto and others provide or would that present a new problem in that direction? >> no, that's exactly what has to happen and what we've been doing. if you can be deployed in many, many enforcement networks, and cloud capability technology. and you can figure out the answers to the problems that using machine learning and analysis as we been doing for a very long time, then it is possible that you can go in and
propagate those answers in a highly automated fashion these are the kind of things that eastbound's driving towards now is automation and orchestration, it's going to be critical to get that right in the future >> we can only hope. mark, thank you for your time. appreciate it very much. >> thanks for having me. >> the ceo of palo alto networks joining us from the cyber stumt there in boston. and we have 40 minutes to go as we look at these markets. dow adding 25 points today as it continues to march higher, the s&p up three this morning. strong some services data of the payrolls is good although with hurricane effects. could weigh on the jobs. nasdaq hired by russell is down by three and coming up, we have more from the cyber summit including brad smith on how that software giant can is kpekting customer daca and why fixing dacs is more important than tax reform miles soaring today after a winning approval of a generic
chu is here to break it down for us >> dom >> bill, kelly, we wanted to look at the names and themes developing from the index. now this time around, the highest weighted component is dow dupont which is the result of that big merger between the two of them. aerospace and defense contractor boeing climbs up to the number two spot now for some background, cnbc 100 index is powered by research firm mcam and it uses this rules-based approach to index composition. that's just part of the story, guys, for more on the methodology, the rebalancing, all of that stuff go to cnbc.com/iq 100, guys, back over to you >> don't you don't think it should be that q180? >> i don't know, it could be the iq 180 >> you went there. >> thank you -- >> that's smart, guys. >> thank you, dom. >> that is smart see you later.
up next, find out how the nation's largest banks are trying to protect their customer data in the wake of the massive equifax breach we'll be hearing from the b of a's chief operations and technology officer, the most powerful woman in banking. and google today unveiling the second generation of it's pixel smart phone, will the new device be able to make a dent in the smart phone market we'll talk about that and it's other new devices kpumg on the closing bell >> just get a blackberry
welcome back with just about half an hour to go, 31 minutes left steve grasso from stewart franco to talk about market movers. you were flagging crude. >> it's a big level for me, for the industry so if the sector relies on crude being above 50, the problem is once you get above 50, so much supply comes on the market, that it actually puts a cap in that marketplace for the actual commodity. what trades on that kmadty, the whole underlying subsector you can't have this rally substantially if crews facing head winds >> not to mention inflation, there's a lot of things hinging on this price right now. >> and the biggest part of this
market, what have we seen in september, we have rotation into the iwm. what's the big constituents of the iwm was aided by energy. energy ran up, held the iwm play catch-up with the s&p, but if that goes away, do they go back into large cap tech? >> okay, back to the -- real quickly on the headline, equi x equifax, you think the story is the fact that they were still awarded that irs contract, but you think the stock can still bounce from here >> put it this way, in the mid-90s when we were talking about it, i said it was not over because they had sticky consumers that would buy it. their clients are extremely sticky, they're not you and i. >> when you were talking >> yeah, no, no, no, the price of the stock >> oh. >> trading around 96 and said, it's not light's out for equifax. i do see it rallying from here. >> hard to disrupt a model >> true, true. >> thank you we'll check in shortly, steve grasso over to you. >> okay. yes, i'm bill.
time now for cnbc news update with sue herrara, sue. >> thank you, bill all right. everybody, here is what is happening at this hour, california democratic senator diane feinstein outlining a bill she is introducing banning the manufacturer and sales of bump stocks those are the devices which can turn a semiautomatic weapon into a fully automatic one. and it was use ds by the las vegas gunman >> i hope senators will finally summen the political courage to stand up and say enough is enough we can't sit by this deadliest mass shooting, it is really time for action we cannot do nothing >> russian president putin says russia has a lot of friends in the u.s. and hopes for improved relations. he told an audience in moscow that he hoped the mutual interest in fighting terrorism would help improve the relationship between the two
countries. giddy tire welcome the governor of south carolina and the president and ceo of walmart u.s. to celebrate that company's first tire factory in the u.s. it's expected to create 1,700 jobs it is part of walmart's commitment to purchase an additional $250 billion in product supporting american jobs by the year 2023 walmart is the biggest client of giddy tires. you are up to date, that's the news update. i'll send it back downtown to you guys, bill, nightly business report tonight. >> looking fwoord to it again. as always. see you tonight on pbs thanks very much and we are heading back to the cyber summit up in boston. and in light of recent data breaches from equifax to yahoo, this time we're talking about how banks are protects consumer data >> american banker recently named our next guest the most powerful woman in banking. and she joins with us our own, that's andrew, that's not kathy, but andrew's there at the summit
to start the interview off, hey, andrew >> hey, how are you? i am here with cathy and it's great to have you here at the summit. we're going to do a panel in just a moment. i wanted to get your thoughts. ghaichb we've heard from the former ceo of equifax has a big major financial institution. what was the lesson in that? and as you probably heard some of the testimony, what did you think of it? >> well, couple of thoughts, one is any financial institution, particularly irs, we are conscious every day of the week that we're in the trust business the core of who we are begins with how do we protect our clients and customers? you know, when i look at the situations not just this situation, but others that have gone before for, really important to study the lessons learned. we use them aggressively and do sophisticated post problem analysis to change what we do, make ourselves contemporary, and learn how to practice events we'll probably practice 50 different times and 50 different
scenarios this year of how to handle -- >> as a function of this, this event, equifax, is there a lesson for you specifically that you've already taken away? >> well, i think probably a couple of lessons, always pay attention to prevention and detection. which we do anyway transparency with clients and customers, sing extremely, extremely important. and, you know, information flow from within inside a company regardless here, i'm constantly conscience >> more complicated question, should bank of america do business with equifax? we've heard a number of large american companies continue to do business with equifax when you saw and hear about the problems they have had, do you worry it exposes your own customers? >> there are lots of third parties that are engrained in the financial system and the way it works day-to-day we have no choice but to continue to do business with some of these companies. i think the important thing is to ensure that our third party
protections are strong, that we're doing appropriate partners and vender management with the rights screening and scanning and contracting to make sure we protect our customers. >> your ceo brian moynihan recently said that there is no cyber budget, cyber security budget at bank of america. meaning, it's effectively an unlimited amount of money, how much are you spending now and how much do you plan to spend next year? >> first of all, that language is code for there's no substitute for accountability, right? there is no excuse for getting this wrong we'll spend this year, about $600 million on information, security in our dedicated unit alone. i'd expect 2018 to be the same way. we've got 1200 people dedicated to that effort >> right what do you think the liability should be for corporations that get into situations like this and lose customer data where there's not an exact liability number that you can necessarily put on something like this today in terms of
money lost, necessarily, but potentially money lost in the future >> well, the most important thing is that our customers have the ability to vote with their feet every day so the greatest liability we face is that loss of customer trust and then them choosing to do business with someone else who they perceive may better protect, protect their data. i think liability's hard to measure. liability's hard to measure, attribution of an event is hard to measure the forensics change over time, and so, i think liability constructs the construct for who's the criminal and who's the victim >> right >> there needs to be a complete legal and civil framework for this that doesn't exist today. >> bill back at the new york stock exchange has a question for you, bill. >> cathy, i don't know if you heard, we had mark on from palo alto networks and we talked about what companies do to try and anticipate, to prepare against these potential cyber attacks of some kind
and he said too often, companies are anticipating a very sophisticated attack when in fact the bad guys themselves to want go the cheapest, easiest route, not that sophisticated. and that's how they get in because the good guys were expecting too much of a sophisticated attack do you agree with that and, you know, what are you doing to protect? and you talked about all the things you're doing right now, do you agree you may be overthinking it sometimes? >> well, sometimes, i think we have to think at all ends of the spectrum, but there's no question factually speaking that most events are the result of vulnerabilities that were known already or should have been known. and that's true, sector wide so in many senses, you're right, it is what you already know that can in fact be the biggest hole in your protective defenses. i think the only remedy for that is what we think of as best tech and best talent. so hire the best talent to do your prevention, detection,
mitigation and make the adjustments that are necessary but also ensure you have the best tech, tech you dwom internally tech you leverage from third parties to make sure that those defenses give you the full range of being able to prevent and understand the simplest of vulnerabilities and the most complicated of vulnerabilities >> and cathy, it's kelly here, quick question because yeah, andrew, thank you. i see here, you just named the most powerful woman in banking by american banker what are some of the lessons learned, you know, money mistakes you've made along the way. moments that kind of got you where you are now heading up 100,000 strong team in a very difficult time for cyber security >> well, i think what prepares anybody well to be a leader is the recognition that a career path is not a straight line up so i've had more than my share of lessons to be learned or individual career setbacks i think that teaches resiliency, and cyber is all about
resiliency no one advances in a corporation in spite of their setbacks they advance because of their setbacks and what they learn, and describer is exactly that way. every setback has to it's not operational, every setback has to bring us the opportunity for learning an advancement. >> biggest issue has been gender gender diversity, the idea of finding people in tech, women in tech in terms of your cyber security forces and your efforts at hiring and hiring women, how easy or hard has it be >> it is difficult wie not graduating, just start there, we're not graduating, enough women graduates in the stem disciplines we're graduating them at half the rate we graduated them 30 years ago, arguably the biggest tech boom there ever has been. the pool is small. we attract as many as we can and keep them as much as we can. it's a war for talent throughout, yet there's no
questions that our outcomes and creative problem solving is better when we have a diverse work force we work really hard at it, we've got to do better and never enough >> one quick question from me, biometrics, the new am phone will look right at your eyes samsung to look at images of people's eyes. at some point -- you have a lot of our information too >> we've been using it a long time in terms of interest from our buildings. there is no question that every piece of data and retina scanning and biometrics are very important part of the future, every bit of data we have makes it's protection more complicated. and the one truism though is this, electronic data, digital data is always easier to protect than paper data.
and so while -- >> really? >> absolutely. it seems counterintuitive, i know, digital is easier to protect the opportunities to protect it are in fact electronic, digital, measurable -- scannable. >> you think it'd be harder printed out. >> put it in your briefcase and walk out of the building there is no way to protect against that and so authentication opportunities, everything it takes to be great at this is better in a digital world. >> cathy, thank you. we're going to continue this nfrgs with our panel, but we appreciate it very much. back to you guys >> thank you, andrew and cathy thank you for those insights as well at b of a. there's your quote of the day. paper money is harder to protect than digital money >> interesting but we've had a lot more experience at it, i guess. >> i guess mylan stock jumping higher after the zwre network version
well, it's earnings season once again. >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade.
you are looking at a live shot from las vegas where president trump is set to speak after meeting with first responders from sunday night's deadly mass shooting we'll bring that to you live as soon as it begins. >> yes, we may have to interrupt unceremoniously when that gets under way. in the meantime, let's look at today's market movers. lighting equipment maker acuity brands after reporting better than expected quarterly profit thanks to an increase in operating margins. waegs management is one of the worst after it was downgraded to hold from by, cut it's price target from 80 to 85 citing lower paper recycling prices and hurricane expenses >> mylan is on pace for the best
day as approved the generic multiple sclerosis treatment ramifications on the whole bunch of others, meg >> that's right, kelly, both mylan moving today as this drug was approved a lot sooner than analysts and inspectors had expected and they thought maybe it wouldn't come to the market until next year. this is a generic version of the big multiple sclerosis drug, that drug was the largest product, counted for more than $4 billion in 201 sales. about 19% of their revenue last year analysts are saying with mylan's approval, they could price it at 25 to 40% discount capturing maybe 35le to 45% of the market share coming out this morning saying as a result of this competition, it sees fourth quarter eps, maybe an impact of 25 cents negatively there this of course comes two days after fda commissioner dr. scott
gotly put out a post saying they were looking to speed approvals of the complex generics. maybe more complex forms of drugs that are a little bit more difficult to copy than what you think is the traditional generic. he mentioned it in a blog post talked about this, didn't know this approval was coming so quickly. this is one way that the fda is trying to bring drug prices down by increasing competition and it was a pretty expensive drug. about $90,000 a year, guys and it's not just mylan and tef la on this news, moving as it is the biggest maker of branded drugs. a lot of movement on the fda today. >> very quickly, the president is coming up in a moment i thought it was just generic drug i was stunned to hear that they'd been genericed out of their own pa tenlted drugs >> i love the verb so they have a few brand of
drugs, they do bring in a lot more money for them. which has been causing them a lot of strife because generic drug prices have been coming down so much, bill >> so they've got a taste of their own medicine >> you're on a roll today. >> meg, quickly, anymore talk about ahead of hhs >> a lot of speculation going on in the health care world now people just trying to think he's being perceived to be doing a great job as fda commissioner. could trump develop them >> this would be another example of his initiatives is there a thought that it backfires. it all sounds good, but what about side effects >> well, of course posted the -- they made their side effect data base a little bit more searchable and investors dove into that and started freaking out about what they were
fighting, of course taking those a little bit out of context. in terms of speeding drugs to market, everybody seems to be giving a thumb's up at least to the fda right now. we'll have to see, you know, when that starts indenting branded drug prices as well if it does. >> all right meg, thank you >> thanks, guys. >> meg terrell there by the way, was just yelling across the room here only the trading floor, the market on close orders show a slight bias to the buy side here of $300 million. so we're watching that i mean, for a moment ago, it looked like the dow was going to turn negative here on us it was losing altitude quickly, now we're back up ten points we'll see how we do that there, the s&p and nasdaq positive right now. >> dollar is weaker too. it's been the high performer of late really has caught up, got an lot of attention about this rotation this time of the year that people seem to be making out of
the thing names that have done so well as big cap technology name into some of the smaller cap, more valued parts of the market which is why we are talking. but whether or not that's holding up with the energy story right now with crude below 50 a barrel today. >> as we mention, you know the president is in las vegas right now, meeting with first responders and jane wells is still in las vegas covering this story for us she has the very latest as we wait for the president, jane >> reporter: he's running behind, but this is the sort of thing a president would be behind for he started at the medical center where many of the wounded are still being treated and he just talked about the incredible feats of the doctors and nurses there. the umc is the main one. the hospital was already full on sunday night, and all of the sudden there were people charging in. either being carried or by their own volition or through ambulances it's just, it really is amazing the job they've done and there
are people who will be in there for many weeks, and then the motorcade with the president and the first lady went over to the police headquarters where there were some pictures of him meeting with officers, just telling them -- thanking them, telling them he's a fan and saying if they hadn't acted as quickly as they did, things would have been much, much worse. every basic dignitary in las vegas from the governor down to the mayor is here. and he will be coming out speaking shortly and i have to add, you know, they started a go fund me campaign, clark county commission commissioner money for people who will need reconstructive surgery, who knows, some of the wounds are horrific and the recovery will take a long time there will be of course counselling needed their original goal was $500,000 they have raised $8.7 million. they have raised that to a goal of 10 million and they're confident they're going to get
there. that again was started bay clark county commissioner, not sure whose administering the fund, but it shows the outpouring of support here >> just say, which it does often in these kinds of situations >> fantastic anymore information on the woman involved with the killer yet >> reporter: well, she's been questioned right now at fbi headquarters in los angeles. mary lou danly flew from in the philippines last night at l.a.x. according to nbc news, stephen paddock, her boyfriend sent her out of the country two weeks ago. her sisters may be were speculating he wanted her to clear out of the way so he could focus on this and did not want her to get caught up in it fbi would like to know about that the sheriff here is saying she will not be brought here for questioning. they will handle all of that in l.a. because they're not really any closer to discovering a motive there are published reports out there, the las vegas review
journal that he may have had a prescription for valium earlier this year, the "new york times" and others have reported that in the past, he worked for the irs and the postal service we just are slowly building a picture of this guy. i mean, the methodical way he created this lair inside mandalay bay a lot of planning, a lot of planning went into this. there are also published reports that he may have been thinking of a previous concert here that he may have rented a room overlooking that, for whatever reason, it was this place he chose to check into on september 28th, and then carried this horrific act out on october 1st. >> joining us, as you're looking at local officials there as we await the president to -- he's been meeting with first responders there in las vegas.
you've been there since monday morning. you know, you've watched the evolution of this city over the last three days, how would you describe it right now? >> reporter: much more police-like. every property has a uniformed officers and marked police cars. i've also noticed sort of a step up in perhaps at least the look in the bearing of the private security at the hotels are seeing there are different security, i believe, in the bay this morning than when i first arrived on monday they appeared not to take away from anyone. they appear to be just perhaps of a different cut so you're seeing a lot more of that although at the same time, at the global gaming expo which is huge happening -- >> all right very good. thank you, jane. she's been doing great job and here's the president, let's listen in.
>> i will tell you the people of nevada and the extraordinary city have shown the world their incredible character, courage, and resolve. nevada really is a very, very special place. i'm honored to be here today at the las vegas metropolitan police department in the company of heroes. thank you to our police, our firefighters, and to our first responders, and of course to sheriff lombardo incredible job you've done mayor goodman -- hello -- >> i couldn't be blocked by anything more beautiful in the world. >> senator heller. thank you very much. senator cortez masto majority leader. where is kevin majority leader? kevin mccarthy adam laxsalt all of the great congressman
that we have with us today from both parties. we just are very honored that you could be with us and behalf of the grateful nation, melania and i thank each and every one of you in law enforcement. in the depths of horror, we will always find hope, in the men and women who risk their lives for ours the mass murder that took place on sunday night fills america's heart with grief america is truly a nation in mourning i visited the hospital earlier today, where many victims are still recovering from their wounds and we ask god to ease their suffering. and to speed their healing we pray for the recovery of the injured and those injured officers who so bravely threw themselves into danger when duty called and we grieve the loss of the
law enforcement personnel who were killed in this vicious attack many families tonight will go to bed in a world that is suddenly empty, the people they so dearly love were torn away from them forever. our souls are stricken with grief for every american who lost a husband or a wife, a mother or a father, a son or a daughter, we know that your sorrow feels endless we stand together to help you carry your pain. you're not alone we will never leave your side. here at the police department, we remember one of our own who died this week, charles hartfeld he was a very, very special
person officer heartfeld was a proud veteran, a devoted husband, a loving father, his death is a tragic loss for this police force, for the city, and for our great nation we struggle for the words to explain to our children how such evil can exist, how there can be such cruelty and such suffering. but we cannot be defined by the evil that threatens us or the violence that incites such terror we're defined by our love, our caring, and our courage. in the darkest moments, what shines most brightly is the goodness that thrives in the hearts of our people that goodness is our lighthouse and our solace is knowledge that the souls of those who passed are now at peace in heaven
here on earth, we are blessed to be surrounded by heroes as one eyewitness recounted this week, while everyone else was crouching, police officers were standing up as targets, just trying to direct people and tell them where to go the officers were standing up in the line of fire to help those in danger and to find out where those horrible shots were coming from words cannot describe the bravery that the whole world witnessed on sunday night. americans defied death and hatred with love and with courage. when the word and the worst of humanity strikes and strike it did, the best of humanity
responds parents and spouses use their own bodies as shields to protect their loved ones americans dashed into a hail of bullets to rescue total strangers. joining us today are many of the heroes who were here during that horrible moment, that horrible night. including las vegas metropolitan police officers tyler peterson and tana gurley and civilian aaron stocker. officer peterson was on his second day on the job when the shooting began i just visited him in the hospital, within minutes, he joined a group of officers rushing between flying bullets to clear the fairground and save lives. officer gurley was off-duty,
attending the concert, although she was unarmed, as soon as the shooting began, we threw on a yellow police vest and began evacuating victims and aaron stocker. a veteran. rushed to the scene to search for his loved ones, but when he couldn't find them, he began helping every person he could. as he recounts, we used the plastic barriers as gurneys to carry the injured to transportation i made splints out of whatever i could find and used anything to stop the horrible bleeding among the wounded was the mother of aaron's girlfriend. she is still in the hospital, and we are all pulling for her to every hero we helped, every hero saved so many lives and believe me, a grateful
nation thanks you. the example of those whose final act was to sacrifice themselves for those they loved, should inspire all of us to show more love every day for the people who grace our lives. in the months ahead, we will all have to wrestle with the horror of what has unfolded this week, but we will struggle through it together we will endure the pain together, and we will overcome together as americans. may god bless and watch over those who protect us may god bring healing to the families of the wounded, the injured, and the fallen. and may god bless our great country, america thank you very much. thank you. thank you, governor, thank you
very much. thank you very much. >> president trump speaking in las vegas. let's bring in our jane wells who's also been in las vegas as the tragic events unfolded after sunday night's massacre. still people looking for more information, jane, then they're able to get that the hour and perhaps never will be fully satisfied to understand why this all happened >> reporter: the motive is really key and the big mystery right now, kelly why stephen paddock did this is seemingly normal guy who was on nobody's radar had sort of an interesting background in that his father was once a diagnosed psychopath, but he had never exhibited apparently any sort of symptoms of anything like this, but the president there clearly somber and emotional saying that
america is a nation in mourning. me said in the depth of horrors, we will always find hope in the men and women who risk their lives for ours, and, we have a picture of one of the dead that he pointed out specifically, charleston heartfield who is a las vegas metropolitan police officer who was off-duty at the concert, with his wife he, when the bullets started flying, tried to -- went immediately into cop mode to help try and save others he leaves behind a wife and two children the department, of course, is particularly shaken up about that but the president said in general, many families tonight will go to bed in a world that is suddenly empty. and it wasn't just the people in law enforcement that he was calling heroes, it was the strangers, he said, americans dashed into a hail of bullets to rescue total strangers and they did >> all right jane, thank you. jane wells in las vegas.
and of course, anymore information we get on the story as it unfolds, we will immediately bring it to you. welcome to the closing bell, everybody, i am kelly evans here at the stock exchange. markets closed just about four or five minutes ago and all-time highs, for the dow, s&p, and nasdaq not huge gains, just 19 points for the dow, 22661, three points to the nasdaq 26534 and the mussel small caps dropping four points today joining know discuss these markets a little bit more, we have cnbc senior markets commentator, michael san toely next to me michael, today we have yet another day of all-time highs from the stock market. the month of october has kicked off in such earnest, some data may support that this morning that the services index is really strong here for the u.s what do you make of it >> you have to have acknowledgment that the conditions that are surrounding the stock market are very good
right now. and i think the big question is, is that fully understood have basically almost everybody in terms of traders and investors surrendered to the idea that all is good? you have the ism number that looked very strong industrial growth globally looks good liquidity and even in a market like today when essentially the market took a day off. it was about half up, half down, still grind out very slight gains. so that's been this lulling pattern. so to me the question is, not are things good, but are they as good as they get and basically we have sent a little bit stretched for people that have bought in. >> a lot of stock specific stories are pushing around today. best is mylan, spoke about the fda approving their treatment there. took a bite out of teva though look at the dow and off nike gaining 1% of course it's been hard hit lately. general electric, jpmorgan down about 1% where do you think things stand here as we size up october >> well, you know, we talked to mike tuck a little bit about the
ism numbers which were both into boom territory for manufacturing services and interestingly, even though manufacturing only represents about 12% of the economy, services is much more important. the isma is a high correlation to the stock market, in fact more so in the last ten years than in the long-term. over a 70 correlation on the positive side. so, i think we have to be label the careful though because some of these numbers in some cases have been biassed up or down because of hurricane affects so, it's still going to be a little bit murky, but i think we're an environment to mike's point that is very healthy for the stock market the only thing i think we have to be mindful of is the risk that we start to see inflation heat up which may force the fed to have to become a little bit tighter than what people anticipate right now that's the only near term risk i can potentially seep on the horizon. >> the other two big stories of the day, rob, puerto rico and what's going to happen with the debt there as that island struggles to recover at the fed, a lot of discussion over who is going to lead the
fed come january >> you know it's a sleepy market when everybody's focussed on who's going to be at the helm of the fed. i mean, we've got, you know, three sort of leadin candidates, one of who's already in a position, another one who's right next to the person who's already in the position, and another who used to be the position right next to the other person in the position, kevin moore. but, you know, people are going to parse their policy pronouncements for views about whether they're more hawkish or more dovish. but really what you have are three highly competent, you know, well-deserving individuals. all of whom have a slight difference of opinion, but all of whom really respect the institution of the federal reserve. so, i think that's good for the markets generally, the question might just come down to who's just politically easier to get through than congress at this point. >> yeah. and also, we have that moving alongside perhaps some fiscal stimulus here with the tax cut package. president trump planning to cut corporate taxes, hoping it'll
stimulate the economy. according to cnbc's all-american economic survey, the plan is not playing well with some significant portion of the public steve leishman has more from headquarters, steve. >> yeah, that's why we pull for thing because of the importance of this to the markets is this corporate tax cut coming let me walk you through the results of how the public feels about this 800 americans surveyed from across the country here so, we asked in general, what do you think about president trump's ideas about cutting individual taxes 62% approve. how about the general idea of cutting business taxes not too bad. 53% approve. but watch what happens when we get more specific on the next slide here what about cutting the rate to 15 from 35 we swap it 38% favor it, 50% oppose, and you can see the strongly opposed here is higher than the strongly favored over there so that particular rate doesn't do well. then we ask questions about well what do you think about the why we should do this? three buckets we gave people do you think it should be cut because it makes firms more
globally competitive 34%, should we keep it because firms are paying the right amount now 25%. should we raise it firms are not paying their fair share, 24% if you go wide, my friend chris on the boom there. you could do this in three buckets here two buckets. 59% say cut or keep it or, 49% say raise or keep it, we'll see. there's room -- there's a lot of work to do here and one other area that shows us who benefits, that's another area the president has to work on if he wants to get corporate taxes done who will they benefit? workers, just 20%, and both is 37%. so, kelly, i don't think our pollsters we have a republican and democratic pollster on this, on this survey, they don't think this is unworkable issue here for the president. they do think there's work to do and it's not a shoo-in to get public support for these corporate tax cuts, kelly. >> all right thank you, steve, michael jives with what another poll today said which is 48% of voters familiar with the tax plan
support it >> yeah. >> what does that mean politically? >> honestly, i think that the opinions on business taxes in particular are probably very weakly held by the public. i feel as if it's basically maybe label the of a party line type of thing. i don't think congress is under any illusion that they are, you know, executing priority number one of the average person out there by cutting corporate taxes. they actually think it might have growth effects. it's may be overdue, it's a competitiveness measure and it's what republicans do. because maybe they're in a safe district and they have to answer to a primary opponent. so all of it fits in with this idea that it's a little bit of a hurtle to message out exactly why we're doing this, and try to spin it as a middle class tax cut, one that's going to accrue to the benefit of average people >> and we're try tog figure out exactly what it will look like rob, there's been discussion about how we're going to pay for the plan as it stands, state and local tax in the news today about whether that deduction will stay or go, now is sounds like it might be either other. you could either that that or
the mortgage deduction do you think that will make the plan less popular with the broad public or no >> the salt, the state and local deduction is a really tricky one. it was tricky in 1986, it's been tricky since it was introduced, right, get rid of it, you can't. because, you know, even though you have -- it's mostly blue states that will be affected, you have enough people in the republican party, in the house, from those blue states like california, upstate new york, that kind of place that could actually tip the balance so this is, this is going to be actually the naughtiest thing of all, it's also interesting what you were saying about michael was also talking about this issue about cutting business taxes. i think yes, if you ask people who are watching this program, certainly everybody understands the benefit in doing so and seeing the wider impact that can have, it is not exactly a populist measure so selling that thing to the ban niets, to the people, a lot of the folks that elected donald trump is going to be very
difficult. it's going to be even more difficult when you have to ask people to give something up. because this is -- this is why we haven't done tax reform in 30 years, right it's just -- >> it's hard. >> it's really difficult >> and if you just -- if it looks like you're redistributing income, you know, say from blue states to red states which was also by the way one of the criticisms including people that john mccain had about the last attempt at the medicare -- >> health bill >> the block grants. i think that's very -- it gets very naughty and you end up redpengsing the scope of the whole bill >> are you saying knotty >> yeah, british knotty. >> just making sure. >> right >> not naughty as in like nickers in a twist >> okay. liz ann, we'll give you the last word on how taxes may fit in with the record highs in the market today >> so, i think kbrounz just to some of the points made, there is a yawning gap between a framework which is what this is and an actual bill
so i think we have to sort of concede that piece of it and then i agree that ultimately getting all of this through, i sat on president bush's bipartisan tax reform commission in 2005, so i witnessed firsthand, even if you head into the room, literally and figurative will with bipartisan support for the notion of tax reform and it's necessity given the mess that is ourl tax code, when you get down into the weeds and actually try to turn it into something resembling a bill that everybody can agree on is a very different story. >> all right liz, rob, thank you both for joining us today. >> thanks for having me. >> liz ann saunders and rob cox. now the google home min, these are just some of google's product offerings unveiled a short while ago. what makes them different than what's already in the marketplace and can google win in hardware? we're going to take a look coming up. and equifax, yahoo, the fcc, the list of data breaches is growing. microsoft's president brad smith tells what you say his company is doing to fend off cyber
criminals and we to want hear from you you can contact closing bell via maitter, facebook, or send us an e-il you're watching cnbc, first in business worldwide not rebalancing your portfolio. focused on what you love, not how your money will last through retirement. we make it easier to plan for retirement
season. there's the ceo richard smith. he is still trying to explain the breach that compromised 145 million people's personal data plus we just learned the 2013 yahoo breach affected all of them john ford is talking with the president and leader at microsoft. john. >> thank you kelly, brad, thanks for being with us. >> thank you >> one of the things i heard today that raised an eyebrow was joys and rosenstein saying that they're big fans of strong encryption and they're no longer looking for a back door into devices like iphones and android devices. how far has this conversation about encryption and privacy moved in the past year >> i think it's moved a considerable distance. you certainly didn't hear people in the u.s. government saying those things a year ago. people have recognized that given all of these cyber
threats, encryption is one of the most powerful tools to protect all of us. therefore we have to maintain it, the last thing we should do would be to create a back door it leaves law enforcement challenges and that then gets to a more complicated and sometimes nuances discussion, but i think we're really starting from a much stronger point in terms of protecting the public with technology using technology like encryption >> so no open ak comoeny the deeper question is trust has there been more or better trust established over the past year ground rules on how the government will or won't interact with companies like mic microsoft that make you feel better about where we're headed from here? >> in all honesty i'd probably feel worse rather than better. it's less about a specific conversation with a specific government and more about just the rising tide of threats that we're seeing all of the references we've just heard about companies being hacked, you know, illustrate that and fundamentally, what we're dealing with now is a
complicated world where on the one hand we see people hacking for financial gain, cyber criminals, but we're seeing a huge surge in nation state attacks as well. so the threats are more varying and on the nation state side they're getting more sophisticated. all of this is calling on us a industry to do even more to better protect people and their data >> in the post equifax, what are you inside microsoft needing to do better or differently to secure your network, your systems, your intellectual property because now, all sorts of employee information possibly linked to their credentials is out there. >> fundamentally we're focussed on three things, first is just incredible effort to keep innovating and raising the bar in terms of using technology to protect data not only using new features and our services and our cloud services, but using data itself
to better detect threats and then respond to them but there's two other things that are also critically important, really requires a much more robust conversation with customers around the world. ultimately this is a shared responsibility we're trying to get out and share what we're learning and advise customers what they can do to protect themselves and then finally, this is a challenge for the world. especially when you think about nation state attacks and it's a global problem it will require a global solution it'll require leadership from governments as well as leadership from the private sector >> just going to jump in here for a moment mr. smith, we were just speaking about the president's tax plan and i understand microsoft is one of these big tech companies, a lot of cash overseas or ways to be affected are you looking forward to this plan coming from fruition? and what would you guy s s do i you have to bring money back home
>> we are looking forward to hopefully seeing a strong tax package enacted in the coming months or year a lot of what we're focussed on, a large american exporters are focussed on is what you just eluded to. we basically have a tax system in that area that was designed in 1961. and it creates economic incentives to keep profits offshore we'd love to see the u.s. adopt the so-called territorial system, it's what the rest of the world has, that would eliminate the incentive to keep profits elsewhere. we could bring it home and then we would do, i think, whatever it made economic sense to do whether it's invest it here, return it to shareholders, in short we could make good business decisions free of the artificial constraint of a tax rule that we've been living with for over five decades. >> do you think it's still needs to be put secondary and in terms of importance to dealing with dreamers the daca act
>> well, what we said was that it made sense to deal with the dreamer issue first. and we continued to believe that today. it shouldn't take as throng deal with dreamers as it does to deal with taxes it is a narrower issue or closer to a bipartisan consensus. there's now support from the white house. it should be possible to move quickly and use a quicker victory to build momentum on capitol hill to then accomplish bigger and more substantial things and i think it's all -- for all of us, worth remembering that when george w. bush's second term ended and he looked back and wrote his memoir he said he tried to do two things in his second term. social security reform and immigration reform and he concluded that he did them in the wrong order. he did social security first, it became so complicated, and then he finally turned to immigration and then that didn't get done either if he had done immigration first, he might have got
telephone done it might have created a victory. created momentum and that could have been used to accomplish something else the thing that worries me the most is that we'll get the february or march, we'll be facing a deadline for our 800,000 dreamers, and suddenly all debate on capitol hill will have to shift. it makes much more sense to get the dreamers situation resolved satisfactorily before the end of december, and then use that to go forward and do what remains when it comes to tax reform. >> you just got here to boston, brad, from d.c., how explicit were you about exactly that message and what was the response >> well, we've been explicit to everybody we've talked about there are many times when i get a response that i find encouraging, people say you know what, we can do two things at once and i think this would be great. first of all, i think it'd be great if we could do one thing at once. if we can do two things at
fwhuns congress, then hallelujah, it would turn 2017 into a year that we could celebrate as we approach the end of the year. >> we hope for progress on many fronts, brad smith, thanks for being with us. >> thank you kelly. >> good stuff. thank you both mie vo soft in our own john ford at the cyber summit. we have a market flash to get to with meg terrell, meg. >> we're looking at seaworld entertainment. those shores up on a report that the company is exploring it's sale along with advisors that's a report out of bloomberg, the shares up almost 10% on top taf gain already today. this of course comesed a the company is dealing with falling attendance and other issues. this report out of bloomberg sea world sent to explore sale with advisors, kelly, back to you >> meg, it doesn't say what potential buyers have -- say anything about going private or just simply says exploring some kind of sale >> it's a good question whether it be private or strategic buying potentially we're digging in and we'll bring you more news. >> cool, thank you, meg.
share's up about 9%. >> seaworld was owned by blackstone i think blackstone has since sold down. but probably it's not been a happy experience to be a public company. >> that's what i'm wonder pg we see more long-term value here than a strategic one >> we're only talking about things like six flags and disney in terms of fare, publicly traded theme park zplps who would make sense, and there's over the weekend so interesting stuff see if anyone steps up to the plate. i don't know what that means that was the classic slogan for the once iconic beverage it's been pushed to the side years ago. now the drink zits losing prime real estate on supermarket shelves. we'll tell you to what's taking it's place next in our fast take and the battle for lower cost ai devices now fits amazon's dot against google's homemini. we're going to have more on all of these coming up ♪
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i don't know it seems like this is the analyst who's going to do it to me, 50% price targets, upside for a $60 billion company in themselves are a stretch basically the idea here is, it's a massive head start that really nobody's going to catch up in terms of margins and what i like is dollar per mile of range. that seems to be the metric he's keying on. semiconductor analyst, thinks they can beat intel essentially and intel from the early '90s, it's a stretch. >> up 66% this year. next the autobonn, it's the name of deutsche's trading platform in the german bank is putting a bunch of it's coding to the public domain by integrating it with symphony we haven't heard a lot of late it does intend to be an e-mail killer and pressure bloomberg's costly terminals, how do you read this development? >> seemingly an effort to create an ecosystem around their trading platform and obviously integrating it with messaging. the symphony is supposed to be that killer of that kind of messaging app for traders.
and how deals are done, it's not just hey what's going on >> and i wonder if they're trying to sort of say, you know, we need to get this up a little bit. >> you want to fortify what's on this platform and may give you a reason for latching into it. >> interesting move as well to just open up the code. >> high frequency makers have done something similar, but it is an interesting move >> next one of the e commerce plays is not amazon by shopafy which more than doubled this year today, he is shorting it for quote being not the company wall street has sold you. the shares are down 11% with we reached out to shopafy, no comment, what say you? >> interesting, i was not aware and not aware of where you can set up a virtual store front and they'll do the kind of back office stuff for you it's had hits and misses in terms of beyond the one day impact on a stock. so we'll see if the story develops from here and whether
these allegations really can be supported. >> if nothing sells mentioned, it has actually been quietly building at one of the colt stocks this year -- >> for sure. >> he was able to be prick that balloon today. >> finally pepsi gotten ahead to quote the cfo today after it's northern american sales dropped 3% and profit fell 10% pepsi shifted marketing money away from it's soda brands michael in order to push lower calorie options like life water. now they say it's a multiyear effort, it's going to take a while, but what if it doesn't? >> i have to say, it's obviously more art than science in the short term in terms of deciding if customers are going to meet your supply, right, they're going to actually want what you put out there. i will say that organic gatorade, we just showed the picture. kids say it's no good. >> bay gatorade has been around. i take your point, i'm not sure i need the organic version of it, but i'm not sure that soda is tobacco long-term i'm not sure we're going to look
down 25 years and say gee, can anyone drink it? they might still be drinking it. >> not necessarily every single year more and more people are going to decide that it's a vice you're going to be giving up. >> i agree >> but they've made a strategic call to kind of move away from it, and i do wonder if they're going to reverse course. anyway, it's time now for a cnbc news update that the hour. let's get over to sue herrara. >> here's what's happening state department spokeswoman heather naurt confirming that secretary of state rex tillerson told her, he never called the president a moron. and stressed that he's committed to his role as the country's top diplomat this after tillerson declined to refute an nbc news report that he used the word >> the secretary does not use that type of language. the secretary did not use that type of language to speak about the president of the united states, he does not use that language to speak about anyone so i hope that that clarifies it >> he never said that? >> he did not say that
>> turkish president erdogan meeting with ayatollah in teheran. iran's state-run television quoted him as saying that the u.s. and other powers wanted to create a new israel in the region he was referring to the british independence rempb dmum iraq search and rescue efforts ending in mexico city today. a full four weeks after a magnitude 7.1 earthquake rocked that city. the official death count stands at 369 of those, 228 were in that nation's capitol you are up to date, that's the news update this hour, kelly, back downtown to you. >> all right, sue, thank you very much. our sue herrara. google is unveiling the second generation of it's pixel smart phone along with a host of other products today will the devices be able to make a dent in the smart phone market that's coming up
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six inch pixel 2 xl. so both phones are going to have the sharper o led displays you're going to have the latest call come processors, also improved camera, we know that's important, kelly because it's often the camera, that's the big reason a lot of types consumers actually upgrade their smart phones, of course, these phones are going to have google assistant, that is google's answer to apple's siri and amazon's alexa these will start at $649 and available for preorder starting today. we know though that google does have it's work cut out for it. pixel phones only captures 0.2% of smart phones shipped between and q 3. last year. that's according to strategy analytics. one big issue there really is distribution off relatively smaller number of operators websites and the countries. now besides the new phones, google unveiled a new smaller version of it's voice activated
smart speaker. it's called the google home mini and it costs $49 with that device google is really going after amazon's echo dot which is going to retail for $50. then we know of course amazon, of course dominates that market. it controls about 70% share according to e marketer. and finally there was an all new product released today google clip. this is a new camera with a high performance lens it has a powerful image sensor, it's going to retail for around $249, google says it's coming soon of course immediately people were thinking perhaps a go pro rival here there are differences though, chief among them, google clips is not batter proof. kelly, back to you >> all right can't take it surf just yet, josh, thank you. not that i'm surfing, but people do that. how will the latest hardware measure up this is editor and chief at verge. welcome. >> hey >> you know, it strikes me, google and amazon had low profile, but perhaps significant hardware launches over the last
couple of weeks. tell what you say sung going to be most important about everything goog million to announce today >>, you know, the common line for apple's success over the past decade or so the tight integration of hardware and software this. that's been the cliche strategy for everybody. google strategy we interviewed him on the verge today his strategy is hardware plus hardware plus ai and they're now saying if they're in ai-first company. google's, all products are a way to get an assistant, google to help you make decisions. you see the big competitor with amazon, they're doing a full range of iowa lex is-powered hardware to get all over your home the big push here for the hardware is really putting ai front and center in your life. google's phones, they're great the big thing is the camera, the camera is now ai-powered they can do a bunch of stuff that apple has to use two lenses to do with the single lens. >> and on the phones in particular, i mean, it's clearly they're not just sort of bottom feeding here in the market with
the pixel phones who are they going to be taking from do you think? legitimately up against iphone for the most part? >> you know,it was so hard to buy a pixel phone last year. that market share stat hilarious because private number of phones they made was one less than they sold they just hired on 2,000 engineers from htc they say this is going to be a big business they're going to break it out in the revenue at some point. >> it's good >> they are great phones we have marvelled at the fact that for a full year the pixel has been the best camera on a smart phone. that is not normal so they are great devices if they can make them, you know, i think you'll see them take share from their own partners which is going to be difficult for them to manage. samsung is obviously a big target i think they are starting to look at well, you know, apple's ecosystem is pretty tightly controlled people love their apple products, but they have an end to start to provide services that apple daent >> and how, i wonder if they're end is ai. we know about google, we been
searching searches into that engine for over a decade now, and they have billions and billions of quaeres, not to mention the map data how powerful is ai as a tool for them to leap frog ahead of apple which already exists amazon had had an impressive announcement slate of it's own a few weeks ago. >> i think you're going to see that get expressed in different ways ways that are surprising obviously there's a assistant, big speaker and little speaker, medium, but that camera that we showed earlier, that camera is not a go pro at all. what it's designed to do is sit in your house, near your kids, it's all local ai, it recognizes you, it recognizes your children, it gets bore and turns itself off, then when it sees something interesting, it takes seven second clips >> so it's a security camera >> it's designed for parents to capture kids -- >> chronicling your life without trying to. >> you know the example they gave is one of the product managers told us my son and my nephew were reeding a book and i
walked throughout with my phone and tried to take a picture, and they obviously stopped because they knew i was there. i sat that thing there and it figured it out for me when to take a picture that's an expression something google it doing. obviously there are privacy concerns with every single thing google does. >> concerns with everything coming to market now go pro shares are down 6% and a big differentiator for sam zon is alexa tells better jokes than siri and endless supplies and siri's jokes are terrible. that's how i spent my afternoon. thank you for joining us >> thanks for having me. the details from the latest senate intelligence committee on the investigation into russian interference into last year's election and what it could mean for the likes of twitter and facebook we will have all the latest details for you, coming up my experience with usaa has been excellent.
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in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember. president trump traveling to las vegas today to meet with survivors, first responders, and local heros from sunday night's shooting at a concert on the strip. jane wells joins us now with the latest, jane >> reporter: hey kelly air force one is taking off. you know the president called las vegas a special place. he's been here many times. there's trump tower here he met with the victims, he met with first responders and said not all the heroes sunday night wore uniforms. >> parents and spouses used their own bodies as shields to protect their loved ones americans dashed into a hail of bullets to rescue total strangers. >> reporter: now we also have a new photo of the gunman stephen
paddock, but we still have the same old questions, why did he do that? well inside the federal building in los angeles this afternoon, his girlfriend is being kwied by the fbi. whatever she knows, they want to know she arrived from the philippines last night you can see here in a wheelchair at l.a.x her sisters say paddock sent her out of the country two weeks ago. now people who have come to a concert last sunday still had not been able to retrieve their belongings inside, but some have been able to get their cars. and up in paddock's room, the 32nd floor is still offlimits. they're still processing that scene. it'll take days. you can't go up the same elevator with law enforcement. we learned that the hard way, and kelly, right now on cnbc.com, investigative reporter scott zamos obtained a confidential report issued less than two weeks before the shooting here where it says law enforcement officers were warned of that unaffiliated lone
afenders pose the most significant threat to large gatherings in the southern u.s back to you. >> wow is it a coincidence? is it not? importantly what can be done about it for now jane, thank you. jane wells on the strip in las vegas. two key members of the senate intelligence committee saying tech giants like twitter and facebook didn't take the russian threat to last year's election seriously enough. we'll have those details next. coming up on fast money, a technician saying this could be your best chance to buy apple. llel uwh hse in the charts
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intelligence committee are holding a press conference kayla tausche has highlights >> reporter: kelly, the committee says it had more than a thousand classified documents and hours of interviews, all with the goals of finding out whether russia interfered with the election, whether they colluded with either campaign, and whether that influence is still ongoing. senator richard burr, the chair, is saying his staff is trying to work nonstop to reach a definitive conclusion. meantime, he's reached one clear observation. >> it seems that the overall theme of the russian involvement in the u.s. elections was to create chaos at every level. and i will tell you the fact that we're sitting here nine months later investigating it, they have been pretty darn successful >> reporter: the committee has already questioned the heads and the deputies of the fbi, department of justice, and
national security agency they've also questioned members of the trump campaign in private, despite asking for many of those to be open hearings they've also questioned the entire obama administration. according to the leaders of the committee today, they say they have 25 more interviews to conduct in just the next month alone, including heads of google, facebook, and twitter, which senator burr says he's confident will accept the committee's invitation senator mark warner, the democratic vice chair of the committee, says facebook has more work to do. they said if facebook were to turn over the 3,000 plus ads they provided to the committee, that would be the company's decision, not theirs but kelly, as for when they will reach a conclusion and publicize their findings, they say they want to get it out in the open before the 2018 primary season back to you. >> kayla, i'm slightly confused by the mechanics of this it sounds like there's some debate about facebook showing up i know they weren't that pleased with twitter's presentation the
other day. isn't it their prerogative as the committee to say, you're going to come and this is the information we want from you >> reporter: yes, they have many powers at the committee level. but in essence, one of the things that has irked the committee, when they've invited companies in the past, the companies have lower level employees who accept, who claim they weren't aware of certain decisions at a higher level and that prevents the committee from obtaining information they say they need. senator burr said the issue of collusion is still open and they want answers about exactly who was purchasing some of the ads, how those decisions were made, and where the money was coming from, because they said having any foreign money touch a u.s. election is illegal. it's not like we're going to have to rewrite those laws >> that's a point. we'll look for more to come from that committee still kayla, thank you for now kayla tausche. bill ackman stitting down with jim cramer to discuss his
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himself, marcus, thanks for joining us what did you find? >> reporter: what i found on the ground, kelly, was very different than what i saw from the air. while we were landing, we saw pockets of devastation but it speaks to the quality of the buildings or the first homes that were built in the last five or ten years >> marcus, you're looking to bring attention to the struggles down there so talk to us a little bit about the idea behind this trip and what you're looking to get out of it. >> reporter: you know, we're seeing a lot of relief efforts all over the globe and i think what's happened in puerto rico hasn't seen the light. i've toured the towns with the governor and i'm surprised by the amount of mobilization that's happened here
when the hurricane first hit, they had a terrible, terrible communications problem it's led to a number of issues i've asked the governor to come on i'm going to see if i can get him miked as quick as we can but i'll give a lot of credit to the governor and the people of puerto rico for being resilient. and the number of troops and volunteers you see on the ground here was quite surprising. when we watch the news back home, we think nothing is really happening. i'm here to tell you that a lot has happened medical ships, a number of volunteers from around the country, and more importantly, supplies are coming in in a very organized way. >> good. what would you say remains the biggest need there's a lot of people giving money. there's some concern who the best stewards of those finances will be. are there other ways than supplies that would be a better help >> reporter: i think the biggest issue right now facing puerto rico is how they're going to handle this crisis and deal with the $70 billion debt issue slash bankruptcy issue you talk to a number of people
here and they really believe those people that invested in the bonds need to come to the table and work out a settlement. they really are looking for a forbearance, something that gives them time to get back on their feet and come to the table. the alternative to that is, you'll get nothing kelly, i think i may be able to get -- >> marcus, we'll let you work on that mike. i was just going to say, the concern today on the street is who is it it will be giving relief to puerto rico, is it the u.s. taxpayer or the bon bondholders? how would that work? >> a separate process that will now be launched with the federal government stepping into it? or was it just an offhand comment by the president there's also been a concern of people emigrating to the mainland >> that's an issue that marcus can perhaps bring up can the wie
governor, i think they're both with us. >> reporter: governor, obviously we see the devastation what everybody wants to know, particularly big money investors, is what happens in this bond crisis and how is that dealt with and what are you and the people of puerto rico looking to accomplish? >> well, right now, marcus, what we need to do is make sure that we get out of this emergency phase. we need to make sure that the people of puerto rico are safe, secure, and that we have the appropriate aid package so we can rebuild. the level of devastation, you were able to witness some of it, it's enormous. we need an aid package from congress so we can get a baseline, we can get a path towards rebuilding then we can have a conversation with of course all the stakeholders in puerto rico to get it started >> reporter: there's a lot of debate between the title iii process and the title vi process. obviously the title iii process is somewhat out of your control. the title vi process puts it back in your