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tv   Squawk Alley  CNBC  February 24, 2016 11:00am-12:01pm EST

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good morning, it is 8:00 a.m. at google headquaters in mountainview, california. it's 11:00 a.m. on wall street and squawk alley is live. ♪ welcome to squawk alley.
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john fort still at the mobile congress in barcelona. kayla and myself at the new york stock exchange as the market for a second day now we'll see if it gets back up again. we're down 2000 points after yesterday's losses. we have been in the red pretty much all morning long. s&p below 1900. crude in the red over 2%. we'll keep our eye on all of that. according to the ap apple will tell a federal judge that the fight against the fbi should be decided by congress and not in the courts. it appears the case is already not a one off decision. the doj is demanding apple's help in unlocking at least nine iphones in addition to the one used in san bernardino. he joins us to talk about that and a lot more. jason we have not taken your temperature on this one. i imagine you have to have some striking views. >> yeah, it's a very complex issue and it's one that we can't let the public's sentiment decide because obviously the public wants to see our country be secure.
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this is a complex issue. it's not a typical situation where you say this bank god robbed, can you just give us the video tapes so we can find the people that did the crime. this is hey, can you create a back door for us to get into phones and encryption is so powerful today it's going to be possible for people to have their communications secured to people of course are saying is apple grandstanding here and is the government overreaching? probably a little bit of both. the government has done very bad things when they have these tools. we know that from the snoeden leaks and then you have apple which is going to hang it's hat on being the antigoogle. we're going to encrypt everything and it's going to be dozens of companies going through this and the public has about as much fortitude on this as the distance between the last
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terrorist attack and the intensity of it. this is a country, our country that sadly was in favor of torturing people after 9/11. we get very scared as a populous so when you look at the public polls i think they're very dangerous because people don't really think through a very complex issue. >> but the populous has also come to value it's privacy to a great degree especially as we learned the extent to which the government's programs have reached and i'm wondering why you think an appointed judge would be better to decide this than a popularly elected body. >> yeah. so the public after we saw the celebrities, you know, private photos get hacked and when ashley madison gets hacked the pub hick does become more and more aware each year of the cost of losing their privacy.
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and people in favor of privacy. you have a 50-40 split and something to that effect. what's going to be dangerous is for apple on a corporate level if we have a republican in office and another ftc investigation happens it's a very popular stance to tell the government that we're not going to cooperate in terrorism and if you look at google they have been very cooperative according to the leaks and their ftc investigation with obama magically went away and the wall street journal had that incredible story where the ftc leaked apparently information about that investigation. so a lot of this is tied together. these big companies are taking huge risks by standing up to the government. apple is not doing this lightly. >> but then jason you're saying it's complicated. each side their their own interests. it depends on very short-term the way the public runs hot and cold regarding privacy security. how are we supposed to make law out of that?
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>> yeah. this is going to have to go to the courts and congress and it's going to be a long, drawn out process. and the government is going to keep banking at apple. if there's another significant terrorist attack and it's going to be very, very unpopular. the government is becoming very savvy to this and they're riding the public's desire to see the country be safe. as a group we're cowards. we get scared and we want the government to protect attacks. the government is going to pound apple into submission. >> the discussion will go on for awhile. we know that. on a much lighter note, breaking news from instagram today. julia is live in l.a. with that. good morning. >> good morning. >> that's right.
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instagram announcing it now has more than 200,000 monthly active advertisers. that's up from hundreds in june. 75% are outside the u.s. and the vast majority are small and medium sized businesses. what's most striking about instagram's advertiser number is how it compares to twitters which has 130,000 advertisers and it opened it's self-serve ad platform four years ago. how have they been able to ramp up it's advertisers numbers. facebook's base can easily tack on adds in instagram. instagram telling me that having so many advertisers now allows it to better taylor ads to users interests making them more useful and more effective for brands. the company also saying that three quarters of users who follow businesses on instagram say that they take action after being inspired by a post.
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like a website, searching, shopping or telling a friend. >> looking at the fact that facebook has 2.5 million advertisers and the time that people spend watching videos on instagram is on the wise. we can expect them to start making a growing impact on facebook's bottom line. over to you. >> fascinating numbers. over to that. jason, here we go again. comparing me tricks between a book entity and twitter. is that a fair fight? >> listen, facebook is in advertisers. twitter is never going to hold a candle to it and facebook has the complete data set. let's face it. facebook has all the data of the facebook users they can use to leverage the subset of instagram users. they'll never be able to compete but instagram is a very unique case. it's only going to work for a certain group of advertisers which is people that have big beautiful photos and big
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beautiful products and emotional collateral. what's really interesting about it is its very native isn't it? the ad does not look anything like an ad. nine out of ten people that see an instagram ad do not know it's actually an ad. it's a beautiful picture that would have normally been shared by michael kors is the famous example but what these brands get in addition to the ad is people click on the account and follow it. you get this lift of i can ingreece the number of people following levis. following michael kors, or target or whatever it s. it's a pretty powerful medium. what i'm hearing from people is its been very weak. i think for brands like lulu lemon or travel it's going to be a juggernaut so it's replacing the magazine business. something that would be in vogue or vanity fair, perfect for instagram. not perfect for instagram. >> what's also unique about the
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instagram ads is they have the arrow on top of the picture that lets you click through. that's something you obviously don't get in a glossy magazine. you bring up the important point which is that these ads are big and you might be able to have 200,000 advertisers but once you get to that point there's a question of how much ad load that type of network can support. but how much do you think instagram itself could support? >> so yeah there's really two issues now. one is how much can each individual handle? i would argue if the ads are targeted properly, users will be able to handle a lot of ads like they do on television which is one ad every couple of swipes. that's good news for instagram. the user base for instagram is very interesting. it's very popular in urban areas and in the hip hop community. this is a really influential
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group of people that move culture. if you look at nikki minaj or people like that on instagram and they get hundreds of thousands of likes. amber rose is another one. this is a very unique moment for advertisers to reach young people, millennials and the urban community. i think it's going to be a juggernaut. it's amazing. sometimes you'll hear about a star and they have so many followers on instagram. it's sometimes hard to believe. moving on very quickly jason. the video of the morning we're calling it. google's boston dynamics and this shows atlas walking inside and outside and the ability to open doors. can get up after falling down. i'll tell you jason, you look at this and vr and it's clear that we're in the early innings of technology. we probably don't even comprehend yet. >> yeah. this one is a video everybody
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needs to watch right now. what you see in the video is the boston dynamics team, you know, the proctor taking a package and having the robot pick the package up and put it down and then in truly boston fashion he takes a hockey stick and starts moving the box around and fracking with the robot. you can see it getting a little bit upset and knocks it down with the hockey stick and i can tell you be careful because computers have very long memories but what's really interesting is this is really the end of manual labor. when you watch this video he's walking through the snow and wobbling but he gets back up and he is picking up packages or she -- i don't know why i'm calling it a man. it is picking up packages and this is the end of manual labor. i just invested in a company in hong kong that's going to replace every barista in brooklyn and san francisco with a robot that can make coffee perfect and without having to, you know, get upset at you for putting sugar in it.
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>> although, they'll find something even more artisal to do with their coffee that a robot can't do. i'd like to see the outtakes from this video. i want to see the robot fall down. i want to see it do something wrong to help me sleep at night. you have to admit there's a little bit of this that is pretty eerie. >> it's super eerie and, you know, in ten years, 15 years the idea is going to be would you let this, put your kid to bed or change your kid's diaper because that's how fast this is going to advance. it's picking up packages right now. these things are going to be walk down the street in 10 to 15 years delivering pizzas. they'll be in your office moving packages around. manual labor is going to end in our lifetime and you can see how close we really are. it's a huge issue with jobs but a huge lift in terms of efficient of companies that nobody expected. already this one looks like a human but the robots in the amazon factories don't look like
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humans but they're doing very similar tasks. what you see here is a platform. this thing is going to be very easy to program and in five or ten years when they make it out in the work force and the programmers get to work on the apis they'll be flawless and more human than human. >> let's hope they can't read a teleprompter. >> or talk stocks. >> it gives you a feeling of what our grandparents and great grandparents must have thought when the idea of flying in a plane came about. it's something entirely new. we have to get our heads around it. >> when we come back the government hoping it can enlist hollywood and silicon valley in the fight against isis. we'll tell you what it has planned plus xiaomi getting ready for a major expansion. and we're still watching the markets. dow is down 220. s&p 1896. oil under pressure again. we're back in a minute.
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executives from tech companies and hollywood studios set to meet with white house officials to talk about the fight against isis. aman is live with that story and they have a lot to talk about. >> they really do. they're calling today's meeting the madison valley wood project because it's bringing together executives from madison avenue,
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silicon valley and hollywood. they're going to meet at the department of justice at 1:00 this afternoon. the goal here is the counter violent extremism in the media and in the internet. and according to a copy of the agenda for that meeting that i obtained from a source last night they're going to break up into groups of 8 people at a time. they're going to go through strategies and plans for how to combat isis on the internet and in the media around the world. the idea here is that the united states can leverage some of its strongest strengths. silicon avenue, and hollywood against isis which has been so active on twitter in particular and very effective at recruiting teenage supporters around the world. this idea they can brainstorm and come up with strategies for that. it's not clear whether they'll succeed or not but they're getting together guys. >> it will certainly be interesting although have to say madison valleywood is not a covert code name if that's what they were trying to do.
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thank you. up next, chinese smartphone maker xiaomi to make an expansion into europe. and we're still watching these markets. the dow falling down 237 points. markets moving on the back of oil but the next thing that could move sit the close in europe. that's coming up in a few minutes when squawk alley returns. here at td ameritrade, they work hard. wow, that was random. random? no. it's all about understanding patterns. like the mail guy at 3:12pm every day or jerry getting dumped every third tuesday. jerry: every third tuesday. we have pattern recognition technology on any chart plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. td ameritrade.
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>> after a busy week mobile world congress is wrapping up. big announcements today. john fort has more on both. >> well, kayla, patrick stopped by to talk with me today about atlas. it's a new initiative they've got that allows start ups overseas to incorporate in the u.s. that's important because the infrastructure exists for them
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to do business online in ways that they couldn't before. what about fraud? what about terrorism? i asked him. take a listen. >> stripe will be conducting kyc. they have to be invited by somebody we trust. and so if you're some kind of -- out to do something, it's an easier path for you. >> i also talked to the international vp at xiaomi. they announced the 5 phone today. it's going on sale in china march 1st. it's the new flag ship of the company that had such a big impact in emerging markets but it's interesting. i also talked to him about the business model because they don't so much make profit over the hardware. it's about the services and software behind the hardware. they have 750 people. their biggest investment in
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software and services and i asked him how is he going to extend that outside of china? it's their next big market. take a listen to what he told me. >> we have done a lot of sophisticated things just offering content. so we'll bring these ideas to other markets. for example we're thinking about what will content look like in india with 4g networks coming of age. so a lot of exciting evolutions which will allow us to bring our business model inside of china. >> with those two things together it's clear they know that they can't be a content provider in the same model outside of china but they have lots of ideas include a new video app that they're releasing not just on their operating system but also outside of that. they're going to release a version on ios as well. this is a company stepping out as a software company looking to sell experiences and this is the beginning of it right here in
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barcelona at mobile world congress. back to you. >> i'm wondering what the reception is like for xaoimi. it's the first big public event when so much of the mobile world is critical calling them copy cats. i wonder what it's like to have them all in the same room. >> well, i asked hugo that. this is a really well intended precede precedent. they developed their own design language. this is in a way that samsung arguably copied. they managed to get the camera flush with the device in the back which is something others haven't been able to do before. and also they have done some things along the front with the curving of the glass. that's some things that samsung has done. they have a very hard material that's going to prevent scratching. they're really pushing innovation here. this also the snap dragon 820.
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it's a very important launch. they're really pushing the message of speed. the other oems are going to have to keep up. her going to have to adopt that snap dragon 820 as well. >> you covered so much whether it's intel or squall come. what's going to be the headline out of this congress. >> now that smartphone growth is over what are the tactics that different companies are going to have to do to make virtual reality into the next big thing or on top of it. it's still about reaching for that. the next 18 months or so we'll start to see a shake out. is htc as good as their by product is? be able to stand up to oculus's
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juggernaut. we're going to start to see it. >> john's ability to do a live shot. >> that's multitasking at its best. he got his exercise for the day for sure. >> when we come back. former fbi special agent joins us to talk about the governments fight against apple and what to expect next. stocks in the red. close to session lows down to 225. the next thing to watch t close in europe. that's next.
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good morning, everyone. here is your cnbc news update at this hour. house speaker paul ryan says republicans in the house of representatives are preparing legal action. yesterday the president unveiled plans to close the facility. meanwhile, texas's highest criminal court tossing the second and final felony charge against former governor rick perry. they dismissed the abuse of power charge which was filed after perry carried out a veto of state funding for a group of public corruption prosecutors after the democratic head refused to re-sign. they began delivering much needed aid to the remote islands
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d devastated by a cyclone last saturday and tiger woods posting a video of himself practicing his swing on twitter with the comment progressing nicely. this comes after rumors were swirling and denied by his agents that woods could barely sit up in a car after back surgery. i don't know he looks pretty good there. that's the cnbc news update this hour. we wish him a speedy recovery. >> he sure silenced a few critics. >> he did. >> thanks so much. europe is closing and pretty much right across the board. >> europe is very much worse than the united states. i would point out that in a very broad based decline you have seen the italian and the spanish banks come back with a lot of negative moves as well so it sli moving to the down side with greater force. almost 3%. almost 4% in spain as you can see and in athens down 4%. so weaker banks are getting hit again and a lot of that has to do with the growth concerns that
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continue to stalk the market. we have this extra wildcard whether or not in june the united kingdom will vote to lead the biggest free trade union in the world and the implications of that. today sterling continued to fall. it fell below $1.40 which we have not seen since 2009. it has bounced on that. 138.76 as you can see. today prime minister david cameron faced the weekly prime minister's questions. but the debate continued. one of his cabinet members suggesting that the deal he struck on friday isn't legal and could be overturned by the european court of justice and the head of the council came back and said no it's legally binding and irreversible but you hear people talking that sterli sterling could fall to $1.35.
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then all the others you might have are added into the equation. >> meantime let me show you what's happening with the metals and mining stocks today. i mentioned the banks. automotives are down but these guys have taken a big hit today. from bullish to neutral and part of that, you to understand where we have been with these stocks. let me show you a chart of the basic resources stocks in europe. do you see how a couple of weeks ago we managed to get the big surge up and the market's reacted really well too for example the dividend cuts to sure up the balance sheet but ultimately now that the stocks have risen they're not such good dividend yields as other parts of the market and they're not covering the cost of capital and therefore they should correct down which is why citi made that call and just really put the boot in. europe closing deeply in the
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negative. don't forget ecb, two weeks tomorrow. guys back to you. >> and this weekend. it's a big one too simon. thank you very much. let's get a check on u.s. markets as stocks continue to struggle here. down 215. our director of floor operations at ubs and he joins us once dpen. good to have you back. it's the old dynamic, right? it's all coming out of oil commodity prices and so forth or has something changed? >> no, it's been compounded as simon illuded to by the idea that the currency markets are getting into more and more trouble. the british pound, the euro. the european zone begins to come apart. it's been a flight to safety. people went into the yen. they went into u.s. treasuries bringing the yields down. so it's some of the same old but it's exacerbated a bit. >> here at the beginning we had a few week where is the dollar
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was softening and people thought maybe there was some stability coming but with the fear of the brexit should we be worried about the dollar getting even stronger from here? >> i am. i'm a little concerned. a great many commentators have been saying the dollar is going to slow down and weaken and that's going to make people optimistic on the market here. but it doesn't look like it's going to be the case and i think we're going to see some geo political concerns pop up. >> all right. we have market pmi no good. housing data no good. what's is street's reaction to the election coming out of nevada now? how is that evolving? >> well, basically awe. they are amazed at what's going on. there's a lot of conspiracy theories being popped up. will the republicans try to run an independent candidate
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separately if mr. trump gets it? hoping to throw the election into the house of representatives and see if they can pick the right person? that's really a long shot. but we'll see. things are going to heat up very rapidly here and you're going to see market reactions to them as he doesn't have a clear economic policy farce we can tell you there's something on taxes or whatever but they're going to need to see more of what he intends to do. >> we keep hearing from the likes of jamie dimon saying don't underestimate the power of low oil for the consumer. it's showing up in spending and the health of the consumer balance sheet. why are we underestimating it? why aren't we giving it enough credit? targets results looked fairly good. >> the basic concern is everybody thought they would be rushing to spend the dividend they got from oil and they're using it, at least half of it to save and pay down their debt
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which is in the long run a good thing but on the one side you see the industry being in a bit of trouble. that's what happened to jp morgan yesterday. they had to come back within days of announcing their earnings and expand the reserve that they have to be prepared for if things go back. so everybody is focused on that side of the lower oil prices right now. >> many terms of levels, we still have some cushion between this and that 1812 moment. what's important between now and then? >> if you break 1890 here it will be 1888 to 1890, somewhere in there. that could add things. crude is fiddling around with the 31 line. they came back and had a rally after the inventories came out which was a real study in
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relativity. in this case bad was not terrible so the market rallied. >> we'll see you soon. thank you. >> back to the high stakes fight between apple. the fbi, and access to that locked and encrypted phone. no matter the outcome this legal show down is sure to have ramifications across not only the tech industry but the entire business community and washington as demand for super secure phones and mobile apps will only continue to rise. joining tous share her expertise special agent in charge of cyber and special operations, now cyber services director. it's great to have you. >> how are you? >> we're doing well. we're still trying to get our heads around this issue a week into this discussion and now that apple has responded via the associated press and we're getting more information about a dozen phones that it's been asked to unlock is this an issue that in your view is becoming broader than just one phone.
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>> privacy versus security is a broader issue people have been talking about and that will be decided on a case by case basis. this particular case is very narrow. that phone, who owns that phone? who owns the data on that phone? so i think as we go forward more and more examples are going to come up of when do we need to balance that privacy versus that security. >> and apple has suggested a commission and independent panel of experts to talk through the issue. it's now suggesting that congress should take up this issue instead of the courts but do you think we're talking about two separate things here? do you think we're talking about one near term solution for this particular phone and then a broader conversation or can this all be handled at once? >> we're talking about two separate issues. so as the fbi has said this is a very narrow request about one phone and not something to set precedent. the bigger issue of privacy and security will be decided by our
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democratic process. who we elect to congress to make the laws and who we elect to appoint judges to interpret the laws. apple is correct in that congress will have a say in this. >> a big piece of the information this morning about apple and similar fights that are now slated to be fought in europe. in the u.k. and to allow precedent here stateside might make it tougher to argue these sorts of issues in other parts of the world. is that part of why they're fight sog fing so hard. >> we have to ask apple why they're fighting so hard. the issue is an extremely emotional one. we all have the right to privacy and we all want to be kept safe at night. when we look at this particular case and this particular request it's a request for giving the fbi the option to try to break the pass code. businesses when we think about it are dealing with them every day. what information should businesses encrypt.
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who should they give mobile devices to? who should be allowed to bring thaer own devices in. this is a much bigger complex issue than the san bernardino case. >> so obviously having been on the fbi side you understand their approach so well but if a company came to you and said, you know, we understand that the fbi had to do this in this specific case but maybe we're going to build our device so that it's more encrypted or an antigovernment device or maybe we'll move our headquaters to another country where we're not subject to this. what would you say? >> we're at that point in a way about encryption already. so there's already apps out there that you can download on your phone and you and i can have a conversation that's completely encrypted and no one can intercept that conversation. so we're already at that point where that technology exists. we as the u.s. society have to decide how we want to be governed. what are we willing to give up for security and what is
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absolutely essential to be protected? >> isn't there an arms race then at stake here? if the fbi wins this round, don't engineers start constructing encryption that's even more difficult to crack? and we try to see who can pull out farther ahead? >> we hear the fbi saying this is about one case where an individual is dead who is a terrorist. people are killed and we want to get into this one phone. we already have that race going on when we think about the bigger picture between cyber security, and our property in the united states versus adversaries that want to steal that property. that technical race is already going on. we have many minds in the united states attempting to solve that issue. that's going to be with us for a long time. >> we'll get more material to chew through it's such a complex and fascinating and high stakes debate and we appreciate your being a part of it. >> thank you for having me here. >> coming up, a tough day on
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wall street. what part of this action are you watching today? >> all of it. i'm watching 168 yield in 10s. where's the support? i'm thinking about that ecb meeting two weeks from tomorrow. what are are they going to pull out of their hat this time? more negative rates? we're going to talk about both of those issues after the break. when the doctors don't look you in the eye, you know it's not good. when i went out i had to put on a wig...i had no hair...
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>> coming up on the halftime show is this market in serious trouble? oil is lower again. the banks are breaking down. are we on the verge of this month's lows or lower than that? plus gm and ford down over the past year and now two analysts are making controversial calls on those stocks and why you may not want to be a millionaire this tax season. we'll see you in about 15. >> sounds good scott. see you then. let's get over to the cme group. hey, rick. >> thanks kayla. good morning. you know as you look at the three year chart of ten year note yields and we have talked about the low on 60 several times an important support area or resistance if you're looking at it from the other direction. now here's the thing about this level. how many times a year ago did we talk about 10, 20% highs in equities and what strategies
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investors would embark upon once that occurred. looking at markets on levels away from markets once those levels get hit many times strategies change. now whether or not it holds is based on a closing basis and part of that is predicated on the big session on february 11th. if you recall an intraday low of 152 and 166. so 163 to 166 is an area on a closing basis to pay attention to. should yields settle below there? does it mean we're going to record closing yields at 138? it's possible. anything is possible. when it comes to stimulus and globalization, one thing that we need to learn is that you need to unlearn some things. today we had congressman chris, district of maryland democrat talking with david about inversions. listen, in the end, there is
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logic to his argument with respect to trying to keep american business and tax payments here but there's also something unrealistic about looking at the landscape we live in and ignoring the facts and still plowing ahead anyway. so whether it's congress on bad tax policy added to other bad tax policy or two weeks from tomorrow european central bank there's been a lot of e-mails this morning of the significance of european securities that have yields that are lower. more negative than the negative 30 basis point deposit rate. and this is very important because even though we may be moving in this country to a less accommodative state all stimulus is fundable and globalization is all about arbitrage. so whether it's tax policy, congressman van holland, there's going to be arbitrage.
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companies are going to arbitrage that tax rate period. you can either acknowledge that form of human behavior by investors or ignore it at your own barrel. by lowering it more negative they will briefly have more securities available for the qe program but then those will move more negative so it creates a p spiral. so we talked about support and central bank insistence that their policy is going to continue to work which in my opinion will give me lower support levels to talk about in the future. kayla, back to you. >> rick santelli, thank you. concern is growing over the stalled ipo market but our next guest says there's one sector that could still be poised for big pops. plus stocks making a bit of a come back right now. dow is down less than 1%. that's better than we saw earlier in the morning. squawk alley will be right back.
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the stalled ipo market taking it's toll on silicon valley valuations but could health care still be a start up sector to watch? about $4 billion in investments each year the health investment sector is still growing. steven is a partner and steven, we've heard that health care was attractive for venture for some time simply because it was so confusing, so heavily regulated. why is that still the case?
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>> well, i think it's a massive market. and not only is it a large market but it's one that's going through fundamental change just five years ago more than 50% of doctors did not use an electronic software to capture patient data. that's just astonishing. this is an industry that's going through change when it comes to digital and mobile and the adoption of software that frankly every other industry in our modern economy went through in the 1980s and 1990s so we're just in the very early innings of a nine inning ball game when it comes to health care it and because of that i'm a bull on the long-term prospects of health care it and both of these private companies and public company stocks. >> it's easy to look at this space and say it's so ripe for disruption. this has been a long time coming but then you see a story and a company that had a good business
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model but wanted to cut too much red tape and did a bad job of doing that. i'm oversimplifying that and leaving out some of the more colorful details there but i'm just wondering if that story is an example to how hard it actually is so disrupt these incumbents. >> there's great stories but as you speak about it that is an example where the business model is a fantastic business model but the company failed to operate and execute in a strong way and frankly it ran into compliance issues and in health care compliance as the new ceo said, compliance is your oxygen and if you don't do things on the up and up and follow the regulatory statutes as they should be followed you're going to run into trouble but i give the new ceo a ton of credit.
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he has done things the exact right way in taking over that company. he's been very transparent and basically taken the approach to how to deal with the crisis management situation. i think the business model long-term is a good one so i hope that company will be able to pull up and be successful in the future. >> steven we know that in this space the government footprint is huge and we know that they are generally the last two accept innovation of any kind of huge drag. >> i talked about how five years ago more than 50% of doctors didn't use electronic medical records. the fundamental change there in 2009 was a government act called the high-tech act which paid doctors and health systems to adopt electronic medical records. there's a good reason for hah. if you don't have data in
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digital format you can't care for a population like you need to another is obamacare. that was in 2010. $3 trillion worth of change and disruption is happening because of that law. there are fundamental tenants in that law which are spurring innovation in the health care eco system so the government is a huge mover of innovation in this area. >> is there a sub sector or a company steven that you think we should be keeping our eye on? i know that bessemer invests in a lot of health care companies. give us a few to take home with us. >> yeah. i think there's honestly a company called oscar out there that everyone knows about. it's trying to disrupt the health insurance business. we're not an investor in that company but that's a very interesting area. think about it, massive sector of the economy.
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frankly customer satisfaction is really low. the third lowest only behind cable and oscar is looking to consumerize the experience. i actually think there's a company out there called bright health which has talented health insurance executives doing the same thing and will build great businesses for the long-term. that's a sector i would look out for. there's going to be massive innovation there. >> we'll keep our eye on it. we appreciate your time this morning. >> thank you so much. >> bessemer, steven krause from boston. >> when we come back a solid day for etsy but a long way to go to get back the ipo price. we'll talk about that in a moment. stocks are pairing their losses as oil has for a moment at least turned positive. the price of crude went, there's the reversal right there. we're back in a minute. [bassist] two late nights in tucson. blew an amp.but good nights. sure,music's why we do this,but it's still our business. we spend days booking gigs, then we've gotta put in the miles to get there.
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but it's not without its perks. like seeing our album sales go through the roof enough to finally start paying meg's little brother- i mean,our new tour manager-with real,actual money. we run on quickbooks.that's how we own it.
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>> take a look at etsy shares today. still one of several stocks trading below their ipo price. down 51% since going public in april of last year. 35.74. >> it's a far cry and no wonder very few companies wanted to brave the waters this year. >> meanwhile, you heard about
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the critical levels which are a little farther above. he was talking more like 1890 or 1880. but there's a lot to get through this afternoon. watch volume as well after a light volume day yesterday. we'll welcome john fort back later in the week. in the meantime let's get back to headquaters with scott and the half. ♪ >> thanks so much. welcome to the halftime show. joining us today is josh brown. our game plan looks like this. road kill. why analysts just cut gm and ford to sell even after the stocks already hit the skids. we'll debate the call of the day. who wants to be a millionaire? maybe not you unless you're looking for an irs audit. stocks cutting their losses in half at this hour. it has been another tough day thou

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