Transcripts For CNBC Closing Bell 20160622

Bringing you the latest poll results. And apple involved in a patent fight in china over the iphone 6. But the status of the company that holds the chinese pat nlt may actually surprise you. We have new details on that. And a rare interview with vice ceo shane smith. Well play that for you coming up. Starting with this story of elon musks tesla making the bid for elon musks solar city. Phil lebeau has the latest comments. Take a look at shares of tesla and what happened once they announced this deal yesterday. And whats happened today with shares of tesla once the second solar city bid was announced. There you see it right there. Down more than 10 . When you take a look at this deal, what a lot of people are still trying to wrap their heads around is why this has to happen. Why are there synergies there. Solar city, a company that is cash flow negative. Is not profitable. As the 2. 8 billion deal that elon musk says will have a lot of synergies built in to allow this company, tesla to become a Sustainable Energy company. Here is musk last night talking about why the deal works. You walk into the tesla store. And in one place you can yes, just id like a great Solar Solution with a battery and electric car. Done. Five minutes youre done. Completely seamless, painless, easy. And everything just works. It may work this his mind but in the eyes of the analysts it does not work. Colin langan saying what are the synergies. Buying solar city a neat idea but tesla may be asking too much. Bottom line is this. You have a lot of analysts still scratching their heads trying to figure out exactly why this deal makes sense, especially gimpb the financials of both companies. And by the way look at where the share price of solar city is trading. It is certainly not pricing in. I it is only trading about 22. 50. What happens if the blowback, especially from tesla investors is big enough that musk has to walk away . He could do it. There is not a walk away price built in here to my to my knowledge. But they could walk away from this deal. In fact a lot of people are wondering is elon musk floating out this proposal here in order to say, okay, whats the best we can do to help out solar city . At the same time he does believe that tesla ultimately an energy company. That is clear from this proposal and the way they have been moving with the giga factory etc. While it makes the sense in terms of a Business Plan down the road, near term investors are saying this is not why i bought tesla. The one thing the two companies have in common is elon musk. Exactly. Thanks phil. Tesla shares sliding lower through the day. Little more than 10 right now. Cnbc contribute are ser s contributors on their thoughts. Bob, what do you think about where tesla is taking its business. I think people are finally beginning to figure it out. They have drunk the elon musk koolaid, you havent heard my next big idea yet. They have drunk it long enough. And nothing is working. This is analogous to the titanic taking on water after hitting the iceberg, and then tying up to a freighter that is going down. And there are probably synergies in the pumping efforts and the rescue efforts. I say there may be synergies in the salvage efforts down the road. But this deal makes zero sense. It is going to further put a huge amount of financial pressure on tesla, it is already in financial trouble. And lets not forget, solar city has a cash drain of 6 for every dollar spent. I dont see how even the morgue stanl stanley. Electric cars and people love the tesla. Well see what he does with the model. I think this is too far taking on solar city which has enormous losses. I think hes treating these Companies Like hes theyre private companies, hes the sole owner and he can do what he wants to. And i think hes going to come. I agree with bob on that. And im not sure this deal be actually go through. And he says hes ab energy company. Being an Automobile Company is tough enough to. Take on the energy field is mission impossible. I was going to ask what do you think is the difference between him and john malone. Malone has combined and recombined his own companies for years. Well lets look at the earnings and see. People stayed with jeff bezos because they believed in the model. Basically hes saying the same to the investors. There are no profits here but you have to believe in the model. Hes got to prove that model out. So he needs to make that work. I think he should cut solar city free. Sell it to someone. Do something totally different and separate that. These companies are in two very different you can call them all energy but it is not an oil company. Whats he going to do next. I think he has to take another look at this deal. I know you have never been a fan of elon musk for many reasons but isnt it possible that we are dealing with a visionary here who is used to bending the rules to get to that vision. That is a longterm vision. Not something hes trying to do net the next couple of years here. I like elon musk a lot. I think he is a visionary, a brilliant guy. I just disapprove of the way hes running the business. Automobile companies finally, you can be visionary all you want and plan for a distant green fossil free future and everything. But in the next 20 years you have got to make money in the automobile business. And the fact is hes losing over 16,000 per car on his high end cars. I will make a bet on tv right now. The model 3 will not come out on time. It will not cost the 33 or 35,000. And tesla will not make money on the car. And a lot of the 300,000 orders will evaporate by the time we get there. I like elon musk. Terrific guy. I get along well with him. But the business absolutely is lousy. And people are finally starting to figure it out. Do you want to take that betd, bill . I dont know about coming out on time but i think tesla has a winner in the car. And i think that ought to focus on that and not get distracted with other things. The other things is a distraction. The as small thing. Not a big deal. It is losing a lot of money and he cant bail out that because he lost 2 nirds of its stock value. Sell it, do something with it. He lost more money today on his own holdings, on teslas holdings than hes paying for the company. So whats that say about solar city. I would say do Something Different with it and focus on tesla and stop dreaming quite so big and get back to basics in the automobile business. I see a case study coming at Harvard Business school on one like this. Bill george, thank you. Bob lutz. Always good to see you. Thanks a lot. Closing Bell Churchill today. By the way happy brexit eve everybody. Joining us today are some awesome people. Ken pete, this market, were down 21 on the dow. It is in a Holding Pattern until tomorrow. It is going in a Holding Pattern until friday. I agree. Tomorrow as this vote goes on there is no exit polls so you are going get speculation. But were going to start to get first word maybe around 5 00 or 5 30 and then they start to report by 9 00 or 10 00 you will have more of a feel. By midnight we should really know and by 2 00 in the morning on friday morning our time the results should be out and then that is when i think it is going to get kind of exciting. I think the market has been held here. Weve been unable to pierce 2100. The market is still unsure which way they are going. I think if they vote to remain, then i think you see a swift move up through 2100 and test the highs and then the Global Economy focus again and etc. If it goes the other way, i think we go very quick break right through 20 50 and potentially test 20 which is a 200 by a moving arch. Away from the british vote. Every oil had a lot do with this market today. Crude headed lower and so too did stocks. And so too did the 10 years and the vix jumped. So what do you think is going on there . Well i think it is hard for me to tie everything you asked together. But i do think on the treasury side we saw yields move down and prices move up a bit because the auction ended at 1 00 eastern. So the concession game is over. With respect to oil, it is probably the tail wagging the dog is the Stock Traders are a little less aggressive with brexit. Really things are idled a bit. And with regard to the other markets and the outcome of brexit . I cant tell you what the vote is going to be. But if they choose to remain, i really do think that the Market Trends that have been quote unquote been pricing that in, the strong pound for example, i really think we go back to the markets where they were 6, 7 weeks ago. I think they have priced that in plus some. I think all the money to be made is if they decide to leave. And that money everybody is thinking is going to be in the uk. Im sure those markets will be active but i have a feeling the european markets are going to be more active. Think about everything mario draghi and brussels have done to push rates where they are in some of those weakers economies. That is control. Controlling outcomes. Putting your thumb on the scale. Should they decide to leave . All of that control starteds to get a few question marks. And those are big question marks. That is where the big volatility and statistically nobody sees that particular outcome. I do think one week from today when we look back, that the biggest thing to Pay Attention to in my opinion for all of the outcomes here are the Interest Rates and the southern part, whether it is spain, whether it is even france or italy and how they benchmark to the german yield curve. Ken, you have famously suggested that we could see the dow at 11,000 and change by the end of the year. Is this the kind of catalyst that you would anticipate if in fact they do vote to leave the European Union . Well, you know, in the names words of roblt duval, i love the smell of brexit in the morning. This could primt a reevaluation of what the stock market should be at. Yesterday janet yellen came out and basically told us that the uncertainty is on the negative side. Were not going to raise Interest Rates but maybe we will. We just want to keep you confident for the time being. But were worried about growth. Economists are telling us things are not as good as we would like. And plus weve got china and all these things. I dont know why the market valuations that we have near alltime highs right now are there. And i do agree with the idea that the english or the british are not going to leave the euros your zone. I think the fear factor, people will vote their wallets i believe. And they are being told you are going to lose job, pound is going to collapse. I think they have been scared sufficiently they will probably stay. But if if market goes up because of that, is that really why the market should test all time highs because the english where staying in the euro zone . I dont know when the bear market comes. I think we are long overdue. The fundamentals i see dont warrant the valuations and when the bear market does come i think the dow will go down 30 or so and that will put us around 11,500. You think that is going to happen before the end of 2016 though. Isnt that what i understood . That this 11,000 is coming before the end of the year is this. I cant call that. Because right now i think the market is being helped up by confidence in the Central Banks ability to solve every problem that can come up. So if that confidence is shaken, then i think investors will look. Brexit may cause that confidence to be shaken because of what rick said. If all of a sudden draghi cant solve all of the problems because england has left, now what does the central bank do . And then we have confidence, disruption. And that can cause the market to fall. If england doesnt leave and they stay, then there is there little bit of relief which is what i say. But then investors focus again on the Global Economy and pressure once again. As much as i hear your story im not a believer that i think were going to lose 30 of market value this year at all. Well see. Thank you gentlemen. Finish each others sentences now. Weve come to that now. 45 minutes to go here and markets have turned negative. The dow is down 19. The s p barely lower and the nasdaq is down 2. Coming up new revelations about the chinese Smart Phone Company behind a patent dispute threatening to keep apples iphone 6 and 6 plus devices off store shelves in china. Very interesting developments there. Also ahead a former British Ambassador to the u. S. Makes the case to stay in the European Union and how a vote to leave could effect the country. Youre watching cnbc first in business worldwide. Real is touching a ray. Amazing is moving like one. Real is making new friends. Amazing is getting this close. Real is an animal rescue. Amazing is over twentyseven thousand of them. There is only one place where real and amazing live. Seaworld. Real. Amazing on their auto insurance. Wouldnt a deal involve two parties discussing something . A little give . A little take . Because last time you checked, your rate was just, whatever they say it is. Why not give you some say in the matter . Or even better let your driving do the talking. 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Mcdonalds has been stalling for a while but the rest of the group, wendys going down. Dominos the last quarter hurt very badly. The big fast food and burger wars. The wars may be over. There may be no winners. And secondly the fast food giant has reportedly received more than 6 bids for its chinese franchise rites it recently put up for sale. I think whats going on in the business is the migration of people to the fast casual. The better burgers. And these boutique burger chains weve been talking a about lately. I love that line. In the burger wars nobody ends up winning. If the category turns everybody on for a while and then leaves them ready for the next thing. There have been so many burger restaurants. Weve talked about this opening. And if there is slowing momentum now, what is the next thing . Arab rainbow bagels or something. Mcdonalds and burger king and everybody serving breakfast. We make burgers at home. You know that is an option too sometimes. The counten to the Eu Referendum vote is on in the uk. Joining us now Nigel Sheinwald with our own wilfred frost. Thanks very much. Always a former British Ambassador to the eu. So great pirn to discuss this topic with. You are on the remain side. You want britain to vote to stay. Are you feeling kcht . Im feeling anxious because i think it feels extremely close. But ive got to believe and optimist that our arguments will prevail with the if public. And i think they will but im not sure of the majority and im obviously concerned that we havent forged a greater margin. The has been the better argument in terms of resonating is on the economic side. This was never meant to be close when David Cameron announced the referendum. Has he unleashed all sorts of things in the british psyche that he cant control . I think on all accounts the fact is were better off win. Very clear britains place in the world would be weaker and more isolated if we left. I think the other sides arguments on that just dont hold water and on the politics and on solvsovereignty. The reality is britain has the best of both worlds in europe. Of course were cooperating in certain area asks that means we pool power in those clearly defined areas but our parliament remains sovereign, remains powerful an all the key issues of our national life. Budget, taxes, health and education. The things that really matter to people, brussels barely touches. And i think that is one of the problems with the debate, the balance in the position t detail just hasnt come through. That is the truth. You have been in these kind of war room, contingency rooms before ahead of big votes or big Foreign Policy moments. What kind of plans would be in place in terms of controlling the fallout . Well i think it is very difficult this time. Because the government has said it doesnt want any formal Contingency Planning to be done and im sure that british officials would have obeyed that. But people will be thinking ahead. They will be worried that there is no easy playbook here. No countrys every left the European Union. The only precedent is greenland leaving in the 1980s and that took five years too sort out. So people will be worried about the period of uncertainty. In the European Union treaty, in our rule book, there is a process by which a country can leave. And you are given two years from that. And in a sense you have two parallel negotiations which could be end to end. One is the disentangle the uk from the eu if we decide to. And the second is to try and work out what our next relationship would be with our former partners. And we havent really had a debate about that and that is going to be very difficult for a British Government which almost certainly will be going through a period of high turbulence and disintegration and the United Kingdom which will be under great pressure to stay united. Former British Ambassador to the u. S. Uncertainty about the outcome. Also uncertainty about the fallout. Back to you. Thank you will there in london. And cnbc will bring you live coverage of the brexit vote all day tomorrow. It will go into friday coverage as well. You do not want to miss a second of this historic vote and the impact it could have on the World Markets coming upstarting tomorrow . Heading into the close with 35 minutes left in the trading session. The dow down 35. Chinas love affair with apples iphone wont last forever. The Chinese Company accusing apple of patent violations and its actual status may surprise you. Also ahead, vice media shane smith speaks with our keita tausche. Bio techs making a move higher. There is that new Medicare Trustees report revealing a cost cutting mechanism created under obamacare, ipab, the independent payment investment board, will not be formed until 2017. We have talked in the past about apple facing this dispute in china over alleged patent violations that could keep the iphone 6 and 6 plus off store shelf there is in china. Josh lipton takes a closer look at the chinese Company Behind that patent case. Can we even call it a company, josh . Well bill t wall street journal is now reported that they are actually both insolvent. Dij one was not been in the market for at least a year. And remember a chinese regulator in beijing granted by lee this sales injunction. The company claimed apples iphone 6 and 6 plus infringed its design patents. But that order has been stayed as apple appeals the decision, which now has to work its way through the chinese legal system. The fight did attract a lot of attention. Because china is such a critical market for apple. Piper jaafari estimates that Mainland China now represents some 15 of the tech giants total revenue. And one added wrinkle in the story. Baidu, the chinese internet giant invested in dij one back in 2013, sources tell me the equivalent of some 45 million in the company but then blamed them for wasting that investment. Still this fight couldnt continue for some time. Dij one might have collapse bud the journal knows that bilee does intend to keep fighting tim Cooks Company in court and maybe even expand the suit to include the 6 s and 6s plus. Probably a moot point because the 6 and 6 plus will be yesterdays news in november. Doesnt seem at least the street doesnt think there is any immediate concern here. The reports ive read indicate this is a fight that could take years to work through the system. And by the time you get a verdict, to your point, bill. Yeah the 6 and 6 plus we might not even be talking about. Pipers jean munster thinks apple could discontinue the 6 and 6 plus in the fall when we get the 7. China and some actors and small it sounds like minor actors in terms of the phone market in china are willing to take apple on in a critically important market. I think that is true. Listen, longterm apple is still very bullish on china obviously and is investing accordingly. Set to have 40 stores in that country. Near term there are hurdles. You have a slowing economy obviously and the risk is that as this case moves through the legal system, does it give local Chinese Companies that much more courage and conviction to bring these suits . Thanks for now. Josh lipton with the latest. And time for a cnbc news update with a courtney reagan. Here is your cnbc news update. House democrats in the midst of a sit in on the Chamber Floor to try and force a vote on gun control. The protest is being led by georgia congressman john lewis whos upset four policy measures failed to move forward on mund monday. We can no longer wait. We can no longer be patient. So we today we come to the well of the house to dramatize the need for action. Not next month. Not next year. But now. Today. Social security benefits can expected to increase by a meager. 2 next year. A year after beneficiaries received no increase and medicare is now projected to run out of money in 2028. Two years earlier than projected last year. Former House Speaker Dennis Hastert arriving at federal prison to begin his 15 month sentence in a hush money case. Prosecutors say the 74yearold sexual abused at least four boys while a High School Wrestling coach. And pope francis inviting refuges to join him on the steps. That is the cnbc news update at this hour. Back you do. Thank you very much. Heading into the final half hour of the trading session today. With the dow still down 38. We have a leading trader joining us telling us what hes watching into the klose next. And when will vice media go public . Shane smith sheex with Kayla Tausche coming up here at the Td Ameritrade trader group, they work all the time. Sup jj, working hard . Working 24 7 on mobile trader, rated 1 trading app on the app store. It lets you trade stocks, options, futures. Even advanced orders. And it offers more charts than a lot of other competitors do on desktop. You work so late. I guess you dont see your family very much . I see them all the time. Did you finish your derivatives pricing model, honey . Td ameritrade. Shares of win winnebago. Have you ever driven a winnebago . No. Whash we watching into the chose today . Watching oil and close up a little on the day but everybody is waiting for friday. Volume a little over 500 million. Very quiet. And over 30 20. Thats interesting to watch. Yeah. Too close to wall which way the vote is going to go yet. Clear it seems a remain is priced in. The ftsi in europe, the british market, i mean is up 4 . A four day winning streak. If that doesnt mean a positive outcome is priced in. I think it is. But it is so close to call. The money on the side lines. The guys with money are saying wait till afrafriday. If you stay in there is going to be some relief. Now you have to wonder if the opposite has happened. If it comes out and looks like a vote to leave, it doesnt seem like people are poxed for that. I dont think so so. I think because this uncertainty. Means been in this situation. They dont know how to hedge it. You look at the fix you are a hundred percent rite and then look at the markets and maybe it is different totally. So we have the wait and see how it plays out. Well be following a vote count tomorrow night. You staying up for it . Early flid. 22 minutes leftdown 38 points. Still ahead, bed bath and beyond will give its earnings after the bell tonight. And after a rough two days on the campaign trail gop president ial hopeful donald trump was back in his native new york today with a new Campaign Staff and a new speech attacking democratic rival Hillary Clinton. Did the donald get his groove back . Well find out coming up. Every year, the amount of data your enterprise uses goes up. Smart devices are up. Cloud is up. Analytics is up. Seems like everything is up except your budget. Introducing comcast Business Enterprise solutions. With a different kind of network that delivers the bandwidth you need without the high cost. Because you cant build the business of tomorrow on the network of yesterday. Welcome back. With the dow down 35, fed ex is also lower. After posting better than expected earnings in last nights close. They were looking for further details of its buyout of european Package Delivery compatnt express but they didnt goat those details. Hillary clinton and donald trump are on the attack these days. Delivering spreechs today and yesterday. And both packed their punches. John har wood now with some of the highlights. A rough couple of weeks for donald trump. He tried to get back on offense today with a soberly delivered speech in new york that tried to do two things. One, make the case that hes the candidate of change who can shake up special interests in washington. And secondly that Hillary Clinton cannot because that same system has corrupted her. The other candidate in this race has spent her entire life making money for special interests. And i will tell you shes made plenty of money for them. And shes been taking plenty of money out for herself. Hillary clinton mazz perfected the politics of personal profit, and even theft. Hillary clinton responded later in raleigh, North Carolina arguing donald trump was attacking her personally because he doesnt have policies to deliver for the american people. She set out a test for herself in terms of improving the one of ordinary people. The measure of our success will be how much incomes rise for hard working families. How many children are lifted out of poverty. How Many Americans can find good jobs that support a middle class life. She laid out a series of policies specific to try to bring that about. One bit of news broken after both of those speech, bill. Brent sko croft, the National Security adviser for bush 41, endorsed Hillary Clinton saying she has the wisdom and experience to lead this country at this critical time. That is an affirmation of the argument Hillary Clinton made two weeks ago against i trump. Is it me or is it kind of early in the campaign to be having these kind of speeches. Usually this is if in the fall after the conventions or sf is it the fact weve had an unusual season anyway . Everything is front loaded and accelerated and certainly president obama was going hard after mitt romney in this same point in 2012 and romney was doing the same to the president. But right. This is a unique campaign. Donald trump is a unique style of candidate so Hillary Clinton is trying to disqualify him. And hes trying to fight back with an Unconventional Campaign that is not as big and not as wellfunded as hers. But hes not that far behind in the polls and well see whether he can make up the ground. Polls are everywhere. Uk polls. When arent they . Right . Thanks john. Just need them to get better. 15 minutes to go. Dow is down. The vix is up over 20 today. The small caps lagging and nasdaq is down 5. Big data is, well, big these days. Michael biel, ceo of a Company Called beta Capital Management, shares what the data are saying about a possible brexit after this. This is my retirement. Retiring retired tires. And i never get tired of it. Are you entirely prepared to retire . Plan your never tiring retiring retired tires retirement with e trade. Im in vests and as a vested investor in vests i invest with e trade, where investors can investigate and invest in vests. Or not in vests. Sign up at etrade. Com and get up to six hundred dollars. Thank you. Ordering chinese food is a very predictable experience. I order b14. I get b14. No surprises. Buying business internet, on the other hand, can be a roller coaster White Knuckle thrill ride. Youre promised one speed. But do you consistently get it . You do with comcast business. Its reliable. Just like kung pao fish. Thank you, ping. Reliably fast internet starts at 59. 95 a month. Comcast business. Built for business. Earlier this season retailers were having a tough go of it. After the bell bed bath and beyond. Courtney joins was a preview. Bed bath and beyond reports First Quarter results of the bell. And same store sales are going to be key. So will operating margin. Its fallen steadily over the past five years for the retailer. Bed bath and beyond has been notably behind a pact when it comes to ecommerce especially because it ses goods readily available elsewhere it is investing for ecommerce now but that is a costly endeavor. Online and comparable sales are on the rise but at the same time it isnt closing stores. It actually has more this year than last and that is why it hurts operating margin. Courtney. Thank you very much. Art cashin just pointed out. And this is very fitting the day before brexit, the market on close orders, 150 Million Dollars to sell. Not a lot. Probably wont have a big impact on if market. Famous last words. As we do close in on the end of the trading day. Michael biel of data Capital Management a hedge fund that uses Machine Learning and intelligence to analyze the market. You must have quite an edge here. What do you make of there is the question of the vote tomorrow for the brits to leave or stay in the European Union. If are you still focused on that right now . Well you are spot on. There is a tremendous amount of information that is concerning this event. Our approach is really to be able to make trades based off unexpected information and a lot of this is obviously top of mind with everybody there. However, when you look at the change in where we are today, after the assassination of Parliament Member cox, theres been a tremendous change in the sentiment associated particularly out of the Mainstream Media in terms of the likely output or outcome of the event. How do you measure that . Give us an ample example of that. News that is produced comes through some level of an electronic channel. And with this push into the data economy, whereby machines can now understand information that was previously only the purview of humans, that is something that machines can now extract information out of. Not only to tell the sentiment but the event is being talked about. You built ab algorithm that takes all kind of disparate information into account and try to come one an Investment Strategy of some kind, right is this. Absolutely. And there have been tremendous advances in both Machine Learning, computer processing and the ability to integrate in heterogeneous data sets and now were just bringing those advantages and applying it to the problem. What is it telling you about the british vogt tomorrow . A one thing that is very interesting here is while the overall sentiment and market tone has changed to a stay vote, thats largely within the Mainstream Media. When you look at the actual activities of the social media and google searches thats not actually changed after the assassination. The amount of votes out of england and the searches and lookup activity out of England Associated with the leave campaign has not dramatically changed after this event. So therefore what that really tells us is there is extreme Downside Risk associated with this event as the actual populous has not necessarily changed their activities. Great point. And what about a way from that vote, what are you picking up on out there . Like the fed, for example. When it comes to the fed i think you find a very interesting similar thing. Every speech globally, not only the fed but every other central bank is applicable for Machine Learning they focus in on historical consistency. So what you have seen is coming out of last Federal Reserve announcement, while they are speaking dovishly, it actually is not to the levels it was in march nor in the levels in december when there was actually a dovish race. Therefore what you are seeing is actually fairly Strong Language around the performance of the economy, hopes that the may report is going to be transitory and then a very negative signal associated with the tail risk of brexit. Once upon a time the prevailing wisdom was, if there is no brexit t july meeting is on the table and we could see a rate increase at that time . Is that what you are sensing through the data . I think it is certainly not off the table. It will require more than just the brexit vote going the way that the market is assuming. It will also require some level of confidence that mays numbers for transitory. But even when you step back from actually the Federal Reserve and you look at the Global Central Bank discord and conversation, there is only one bank over the course of the last month thats had an incredibly hawkish tone. Every other bank has been very dovish. That one bank has been brazil. And when you think about that in the context of the upcoming olympics, one has to wonder that when that passes what will actually be the tone there and how much of that has been defensive in support of the upcoming olympics. Is bed bath and no im kidding. They report next hour. Actually, i think within bed bath and beyond it is very interesting and there are Interesting Data sources that can be helpful. An example not necessarily for bed bath and beyond but chipotle and the vents around there. There are satellites now floating around counting how many cars are in the parking lot, which is replicating work i used do in fundamental analysis and when you look at that impact you see the decline in field rates. You see a lot of the traffic has been going to panera bread. But when you look at store within a one mile radius of panera and chipotle close to each other you are seeing chipotle get some of the share back. And more certains like that, that can be blied. Hightech channel techs. Michael beal. Good to see you. Thank you very much. After the bell, exclusive interview with shane smith talking about his companys move from media to traditional tv. And about possible buyers for the upstart Millennial Media company. 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Its on all my mobile devices, so it suits my mobile lifestyle and it keeps my investments fully mobile. Even when im on the move. Sign up at etrade. Com and get up to six hundred dollars. We are at the 2 minute mark. Here we go. Let me review for the last week or so, two weeks in many cases, what the markets have been doing building up to brexit. Well start with the dow and ore indicators that have had more of a vested interest in all this. There is the dow as it moved higher bob pisani. Today were down. British pound, here is one that really had moved in that time. Appreciably. As the feeling was maybe they would remain in the eu. The 10 year bund in germany famously went negative for a time when there was a fear there would be a brexit but its since come back. This is a one week chart here as it comes back from that low. And then the vix, back above 20. In fact it is at 21 right now. Going into the close, which is very interesting here. You want to put the vix up on an interday basis. It is very important to sea in the last hour and i hope you are all listening to bill and kellys interview with michael beal. I completely agree with him. The risk still very much to the downside now. Because the entire market has now moved to believe that remain will be the vote tomorrow. Rightly or wrongly. And you via the vix creeping up. It was 22 at the height of the concerns about brexit or where the market believed that the vote would be to leave the eu about week ago. It is moving towards that again. It is basically trying to price it up uhoh. There is a small chance that brexit could happen. And the market is positioned not in the right way for that to happen. And remember, russell 2,000 on friday [ bell ] thanks bob. So here we go. Get ready for the big day tomorrow. Cnbc will have special coverage all day. Hope you can join us at that time. Stay tuned for the second hour of the closing bell. Thank you bill. Welcome to the closing bell im kelly echx. The dow giving up 49. The s p down 3 and the nasdaq down 10 points to 4833. All of this ahead of tomorrow. The british vote on whether to leave or stay in the European Union. Those results wont be this of course until well after the markets close. We are setting up for the results of that. And you can see a lot of treading water in these markets ahead of the big events today. Weve got big guests this hour. First up, former nba super star Antoine Walker. He once played above the rim but came crashing to the floor financially. Hes now sharing with others his mace tak mistakes and helping change the lives of nba players. Joining me is cnbc commentator michael sanitoli an carol roth. And guy adami, always great to have you on board. First we shouldnt overlook. The dow did decline 49. It wasnt nothing but the market more broadly seems the most interesting is the vix up 21. The market softened up in the afternoon. I think as the dont be a hero kind of posture. Were not going to get decisive guidance about the vote ahead of time. It seems it is going to on some level remain a question mark. I think the vix going up 22 is very significant when you have had a very sideways trend list s p 500. If you think about scenarios priced in, a leave vote certainly has more downside and remain would certainly have immediate upside. Interesting we did see late in the morning when some of the polls came out that started showing lee was just edging out remain. It did seem that was the point when things turned around. I know the bookies think we are going to stay but the poll numbers brought things back in the other direction. And a lot has changed in a week. A thursday in particular when everything was selling off and a lot of concern about a vote to leave. Today, you know, the fooths, the uk market has been up 4 . Up four consecutive trading days. Thats certainly not positioned now for a you know, what is pricing in as you indicated a leave vote. No. It seemed like the leave scenario caught people by surprise. And so you have this kind of crowded move to sell things off and then of course you have too much time to think about it. And then people are saying after the fact maybe it is going to be a buy no matter. So you have some inching back in. People just want to let it play out and see where the prices go afterwards. Other things elsewhere the 10 year yield down 1. 7 . Housing, existing home Sales Numbers this morning are still down in absolute numbers but the best monster since. I would have to admit myself the housing data has been more good than bad. But doesnt mean you can buy necessarily the Home Building stocks. My thing all locke has been to play this resurgence or strength in the Housing Market has been with home depot. And that stock recently has given up the ghost a little bit. Quick in terms of the what struck me today, obviously you got to talk about Federal Express a little bit i think. The news broke during your show last night. The stock was down marginally and really took a bath. That coupled with the move in transports. Remember transports bottomed in jon and they sort of let the market back up. In january. Obviously you see whats going won with fedex. Rails have been been particularly great so makes you wonder are the transports trying to tell us something. That coupled with the fact that russell has been rolling over a little as well. And leads to some concerns. All that said the s p is still within a percent and a half, two percent of a alltime high so it is very difficult to figure out and decipher. And reminded that tomorrow were always gong to have the stress test results. 33 bank. Markets expecting a lot of dividend hikes from many of these names and includes american express, the big banks. Some of the regionals. That is going to be another piece of news to sift through as we brace ourselves for friday. I do think investors view this round of the stress test as being a little more of a potential net positive for the banks because of as you say the expectation that you will get the authorization to share more capital. Does that mean you have Downside Risk if you dont get that it . I dont know. I feel they are in this long con flesance period the banks are. So it is probably a good for the stocks. Also a bifurcation between the banks that have more exposure here domestically versus the ones that have exposure if europe that could be much more impacted. So i think you have to look at the universe and divide it up the names at home versus the ones with that broad exposure. Exact. And going back to housing one more second. One of the economists following the news this morning said the Housing Market is back. In fact it is starting to look like a new bubble with prices reaching unaffordable levels in many neighborhoods. Housing bubble two is under way carol he says, bet on it. One of those challenges. Obviously were seeing some pick up in demand. But there is such little supply on the market. And that is where you have to scratch your head with the home builders. If there isnt the supply that is coming from people listing their existing homes, then you do you look to the new homes . But like you said, it kind of depends where you are in the country. In certain areas, definite bubble territory. In other areas completely fine. I think you could have expensive unattractively priced real estate without it being a bubble. A bubble means pervasive participation this an asset run that is unsustainable and i dont think you have that. You dont have people buying two and three homes they cant afford. You have more than enough supply for people who want to live in houses. Also coming in from abroad and seeking refuge, where do you put this cash . And its been deriving up the prices. Flip side, massive supply coming into the urban markets on the apartment side. Maybe you want to think about renegotiating your rebate rent on that front. Josh lipton has a preview of twill oweo. Expect a lot of twilio. A Cloud Communications platform, allowing companies to add messaging voice and video in web and mobile publications and now has over 28,000 active customer accounts with some Big Tech Companies including facebook and uber. Twil twilios decision to go public makes it unusual. In total there have been three tech ipos this year. Last year by this time through the end of june there had been 14. Twilios performance could now have a big impact on all of those private Tech Companies still sitting on the side lines. I would say the private companies you know, were invested in ones like mongo database and on that and app dynamics. They all have potential of becoming significant stand alone software companies. And this is a boogood barometerr investor appetite. At 14 twilio would be valued about five times current valuation. What do you think . Im not a tech wliek josh. Josh is the man. But i think it will be interesting to see how it comes out. I think they use aws as one of their platforms it is interesting. More and more people get into the cloud space and it makes you wonder if the space starting to become commoditized. Thats my main concern, especially talking about Companies Currently trading with the valuations they have. Quick though, mike was talking about bubbles and i hear what shes hes saying. I thought something was interesting over the last weeks. And look at the name like at t and verizon for that matter. Look how they have been trading over the last couple months. Trading sideways between 45 and 38 for the last four or five years. That stock today made a five or six year high. Is that interesting . Were forcing people to find yield and you are seeing it manifest in names like at t and verizon. Not to say they arent Great Companies but you are pushing valuations up to levels we havent seen. So talking about bubbles, maybe there is a bubble right in front of ours face in terms of what people are reaching for. Ipos now were at a interesting time as the former investment banker you know when you get into july and august you cannot take companies public. Managers are going on the vacations and not paying attention. Twilio and important to get the momentum back going a little bit. At the same time it is just going to stop because of the calendar and any potential ipo is going to be booted to september which is going to be a completely different market. So i do give them kudos for going ahead and saying listen, the market overall in terms of valuations are strong and were feeling strong about our platform and were going to go for it here. I think that is a fair point. And you mentioned vacations from the wall street journal today if you want to gauge are things really strong out there for the economy mike . They are talking about how some employees arent given two weeks northeast anymore when they leave. One guy wanted to leave that day because he was going on a really good vacation the next day and had gotten a great deal on it. Is this the tree house guy who was going to somebodys funeral and he hung out in the tree house . . Im going tot not going to blame this on millennials but it is saying workers are in a little more control right now. And. And Small Businesses are having a really hard time finding the right types of candidates to fill those openings as well. We consider all of these to be all positive little anecdotes which we hang on to and hope everything is rosie. Thanks for joining us. Coming up. Andrew left at citron research. Coming up live to london. But first tesla shares are slumping after offering nearly 3 billion dollars to buy solar city. Well discuss whether this will officially transform tesla from a car company into an energy one. I could get used to this. Now you can. When you lease the 2016 es 350 for 329 a month for 36 months. See your lexus dealer. They found out whos been who . Cking into our network. Guess. I dont know, some kids in a basement . You watch too many movies. Who . A Small Business in china. A business . They work nine to five. They take lunch hours. Like a job . Like a job. We tracked them. How did we do that . We have some new guys defending our network. New guys . Well, theyre not that new. Theyve been defending things for a long time. [ digital typewriting ] its not just security. Its defense. Bae systems. Tesla shares took a giefive dive today on News Elon Musk wants tesla to buy solar city. Shares of solar city closed about approximate percent higher. 3 higher. Musk. Chairman of tesla, shareholder of solar city. And the wiggins shaerld and. Is tesla still considered a car company after all this . After this deal, solar city will be a it will still be vastly an auto company. How much more difficult to analyze. It is adding a lair of complexity. That is one of the challenges with see e with the deal. The accounting on solar is very different. The Business Model is very different so wheal have a lot of learn ding to do. Do you see any rationale for this deal . There are definitely links with storage. But storage is a very small part of the business today. So it is kind of an odd deal interest that perspective that you are taking a very small part of the tesla storage and combining it with a solar company. And the synergies werent quantified but from our perspective seemed pretty small. I would perhaps make the argument this was never really a car company. Never traded like a car company. It is an Innovation Company with an elon musk preemen on it. E lion is now say saying this is perhaps a clean energy company. I think i was talking about from a sales perspective the majority comes from electric vehicles. There are no auto Company Trading at these kind of multiples. So i think there are already clearly a perception that this is a growth than more of a clean energy company. I dont think that perception is different just what kind of products they will selling and in my opinion most of the sales will come from automatically. Seems like when this all might get sorted out in terms of the when the market accept this is merger is when tesla might have to go back and raise more capital. When do you expect that is going to be just the fund the actual production of the cars . And do you think investors will be able to see their way to saying fine okay go along with the Strategic Plan and here is more money. I think they just did a capital raise. 1. 4 billion raised. That will probably get them through another year, year in and a half. Unfortunately i think solar city is going to probably burn some cash as well. Tesla sees opportunity to reverse that but i see that as suspect. And it is going to depend. It puts them at the model launch and how well that goes. I think there is clearly a risk in the next year, year and a half. Jeff gundlach, when we spoke recently, was very bullish on tesla and elon musk has just said of this deal, as the complete confidence destroyer for tesla shareholders. And i wanted to ask you about not necessarily whether it gauges. But could a strong argument be made that this violates the interests of tesla shareholders . I think they are very transparent in fairness about the deal. Disclosed elons holdings and a lot of the conflicts of interest. And well see if the deal actually goes through. It is just an offer at this point. Soo well see what the board reveals. Something i think boards and those doing the analysis will consider whether it makes sense from a more unbiased perspective. Tesla below 200, colin. Your price target is 160 with a sell rating. Thank you for joining us. And bed bath and beyond now. Courtney reagan. How did they do. Miss, miss and miss. Reporting 80 cents for the First Quarter. Analysts were looking for 86. Revenue of 2. 74 billion slightly shy of expectations. And same store sales, the key metric for retail down a half percent. Analysts were looking for growth of 0. 6 . Full year guidance, the company says it will fall comfortably wth within the 4. 50to 5 range. Shares are lower after hours and well get more on the guidance and the companys financial assumptions in the Conference Call coming up. I wonder if bob is loading up. We spoke with him early. And more of the interview tomorrow. But the olson funds manager saying it is doing 6. 6 dollars of Free Cash Flow in two to three years. Take a listen. We believe private equity or somebody is going to realize the yield on this company. What a Great Company it is. Great franchises underneath it. Byebye baby and the chromosomesshchromosomeistmas shoppe. We believe this company is at least 70 dollars a share. They earned 80 cents. It was supposed to be 94 at the start of the year for the First Quarter. Clearly things are eroding. The stock is going to undercut the february low based on how it is trading afterhours. They may have missed this lbo window. On paper two yearss it would have been worked perfectly. They leveled up and bought back stock instead. Shares down over 5 . And more of that interview with bob olstein tomorrow. Coming up were going inside a Marijuana Dispensary that is using Lessons Learned from the mob to keep its cash and books straight. And up next, Antoine Walkers tells about his massive money mistakes but how hes learned to gain control of his financial future as he makes his way to post nine welcome back. The nba draft is set to take mace tomorrow night in brooklyn. And 1996 annual Antoine Walker was one of them. Ful he was in the same situations drafted by the celtics and easterning more tha hundred Million Dollars over his career. Now hes helping athletes control their financial futures. Antoine joins us onset. Welcome both of you. First antoine, you were part of the 96 draft class, right . Yes. Had kobe. Arguably the best class ever. Allen iverson. Kobe. Steve nash. Lot of stars. How did it go from a hundred Million Dollars to zero after your career then . What what would you have done differently first and foremost. One thing i came into the nba at 19 years old. I didnt have have a lot of knowledge of handling money. Went through trials and tribulations helping my family out. We went through troubling times and i wanted to do approxima lo great things for hem. And i took a lot of responsibility on. And then not having the right team around me as far as investment wise. Took a huge risky investment in the real stailt market. And you had a firm that got burned by the great recession. A ton of property in chicago in o 5 and 06 and then got caught it. What about the people around you . Is that a mistake too in terms of the people managing your investments and finances . It was a factor because obviously i was taking care of a lot of people, family and friends and not holding them accountable for some stuff. It played a huge part. Even we just got word this week, look what happened with whats his face down in florida. Sanchez. Taken out by an insider tradic scheme basically. How common is this for athletes. We see it happen a lot. Being able to egts these athletes at earlier stages will help change the narrativity. Having them be more informed what do how too kroet a plan. And you have teenagers who are alls of multi millionaires and havent had experience in dealing with these issues. How quick do you have to get that these drafted player is this. We get to them sooner at the collegiate level, being able to get in front of student athletes and talk to them about basics at that point. Things about savings, protecting their credit, surrounding themselves with the right people. And the more we can educate them interest that point, to the point that some of them have an opportunity to go pro, the more we think we are going to be able to change the narrative. And having worked with a lot of athletes myself, i hear your story and i hear it over and over again. It is so hard to say no. You are surrounded by yes men. You are surrounded by family and people that you love that say i need help. What do you tell somebody whos just come into money whats an athlete or maybe a new entrepreneur, how do they say no to these people who are saying i just need a little bit of help right here . Well the tough part is it is tough to say no to your mom and dad and brothers and sisters. I always try to tell them. Just generational wealth. At 19, i didnt think about having money at 39 years old. And it hits you. Youre young and make a lot of money and dont think about the future. At 39 i never thought that. I filed for bankruptcy a year and a half after being in the nba. You can make a ton of money but if you county take cadont takeu are not going to have a lot. The league paying attention to a younger guys coming in. The rookie clinics to teach them how to keel with all aspects of life. Are they doing enough . I know when i was 20 and 25 i wasnt smart about money but i was going to have a longer earning career. It didnt matter that much. The leagues are very well aware. They are very proactive. And we are fortunate weve been selected by the nba this year to provide rookie training at the upcoming summer leagues. But the more that can be done in terms of reiterating these messages and to get pretty multiple sources so they can apply it with make a big deal. And it also helps from experience about dont do what i did. Antoine walker. Breesht you joining us. Thank you both. Time now for a cnbc news update. Here is whats happening at this hour. House Democratic Leader Nancy Pelosi stays democrats sitin will continue until they have a bill on gun control. They will stay all night if a gun control bill isnt brought to the house floor. Russian president Vladimir Putin addressing lower house of parliament accusing nato of ignoring russias call for closer cooperation on collective security and also accused of intensifies its aggressive relate rick and arbgszs goes do its borders. And infin ti recall. And. And an estimated 800,000 fans filling the streetds of cleveland. Dozens of cars made their way through the crowd. It was the citys first major sports championship in 52 years. The curse is broken. A lot of my friends are there and we couldnt be prouder, being an ohio girl. Exactly. And you know what it means. Great stuff. Thanks kelly. Is an ipo in the cards for vice media . Well hear from shane smith about whether hes shiing about going public. First well head live to london for latest on those british votes about whether to leave the eu and how the key vote tomorrow could impact your money here in the u. S. Were back in a moment. Im here at the Td Ameritrade trader offices. Steve, other than making me move stuff, what are you working on . Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place and lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim. Td ameritrade. Time now for your market rap and recap. Stocks today most wli lower. Dow was down about 49, snapping a two day win streak. S p down 3 and nasdaq down 10. Investors taking a wait and see approach ahead of tomorrows crucial brexit vote to leave or stay in the European Union. You can see declines of about a quarter of a percent across the board there. Mcdonalds the biggest drag on the dow today after the stock was downgraded to neutral. It was down about 1. 5 . Also lowering its price target citing concerns about slowing u. S. Restaurant Industry Sales trends. And bed bath and beyond shares under pressure after hissing profit and revenue forecasts. Bed bath trading down 5 . Remain or leave is the big question looming among british citizens today. We took to the streets of manhattan to see if americans are worried at the so called brexit . I think it has imp cakes for us overall. We view them as the trading partner. So i think that could have a Significant Impact on us. If they did leave i think it would be really bad for the economy. I think they need to break away and have their own own sovereignty or however you want to put it. I think it is great for them. Lets send it out to london now with our worldwide commander in chief team, wilfred frost and sara eisen. Wilfred, what are you finding out there. Thanks very much. Lets break down the latest today. Leave just ahead on 44 . One more big poll comes at the top of fast money in about half hours time. Its moved the betting markets a little bit. The remain camp now 80 to 74 probability. And just going to bring you some more betting facts coming from betting firm lab brooks. Today the majority of bets were for leave. 62 . However the bets workshop bigger for remain. 376 pounds for average. Versus 72 for leave. The weight of the bets has been on stay. But the volume has been on leave. So more bets going on leave but of smaller amounts. A there is a horse running tomorrow called brexit in a race called newbury. Were not allowed to bet on the voting but we can bet on the horses. 16 1. Ill have a little bit of that, yes please. Lets talk sterling though. What are people saying . Doing with the currency ahead of this vote . I have to say ive been here a little less than 24 hours kelly and there is a big disconnect between what were hearing and seeing on wall street and what i and wifrd have been hearing and seeing here on the streets of london. Some are preparing for a british pound slump by going in and exchanging their pounds for euros ahead of tomorrows vote. We were going around and talking to people about their views and caught up with with unm one man doing just that. Im going today and get some euros before i two home. And ill buy half of them today. And half of them next week. So ill hedge my bets. And reuters saying since the weekend online and in branches from last year, exchanges of currencies are up 74 . We dont want to overplay this o be alarmist but there are echoes of other financial crises when people were nervous about the unknown relating to the currency. Theres been a lot of dire forecast and including most notably a decline in the pound. So people are aware of the wild swings in the pound. [inaudible]. From banks. Exchanging the money. But listen. If the pound goes down like 20, 30 there are a lot of people who would like to make a lot of real estate purchases at that point. Oh yeah. It would cause all sorts of ripple effects on the economy. No question about it. And weve been also wondering how how people were voting, talk toing people. They were surprisingly actually weapon informed eed about the. I know wilfred had a chance to do his own sort of poll. He found a special group of ladies to speak to yesterday. And i decided to trump that. So i went to the pub and did my own polls. Have a look. Im voting to leave. I think it is really important that we take back our sovereignty, really. Im voting in. So in the minority here but i this i were european and there is no point denying that. Ity it is fundamental and it is important because were not not going to get this opportunity again. If we vote to leave we have a chance to forge our own path. And if we vote to remain the European Union can do whatever it likes. Because weve shown our hand now. So three out of four young blokes i met are deciding to leave. You decide whos poll is better and more scientific. I picked a very Handsome Group of young man, not to make wilfred jealous or anything. As well. Mike and carol, briefly. Anything you want to ask. I think goes against the polling in terms of the demographics of people who would be voting to leave. I dont know if sara somehow tilted the crowd there but it is interesting. I think the big question is this Enthusiasm Gap if there is one. People are going to be more motivated to get out and vote if they are really up happy with the status quo. The reasoning behind the people who want to leave, how much is economic and how much has to do with sort of the geo politics going on throughout europe . I think people who want to leave it is the opposite. Economic arguments tend to lead to people to want to vote remain. Sovereignty integration tends to want people to vote. Exit, coming back to mikes point i would say turnout is going to be a massive factor. The Weather Forecast isnt very good. A lower turnout helps leave. A higher turnout helps remain. And the thing i would add, yes he we saw a shift in sentiment towards the rupp remain. A but a vast majority have already made up their minds and many have even voted by postal vote. It is only about 10 of these undecides. And the market moves as if its everyone. The question about the economic case to leave i did hear from one of our guests earlier a very sound economic case to leave from a major Successful Hedge Fund manager who is tells us that he i sees the euro which the uk is not part of that common currency bloc and the eu as a sinking ship that britain needs to get off before it sinks. A lot of economists have said it is a mistake to tie these economies together with a monetary zone. And thats what makes it such a close call. So glad you are both there. Thank you for staying late to join us. Wilfred frost and sara eisen. Vice media shane smith wa weighs in on everything. We were born 100 years ago into a new american century. Born with a hunger to fly and a passion to build something better. And what an amazing time its been, decade after decade of innovation, inspiration and wonder. So, we say thank you america for a century of trust, for the privilege of flying higher and higher, together. You get 24 7 monitoring from burglary fire and medical emergences from adt and professional installation is only 99 and monitoring is about a dollar a day vice media has big plans for expansion this year. Our Kayla Tausche spoke with shane smith earlier today about that and the future of the company. It is a good time to expand. You know, millennials just took over from baby boomers as the largest cohort in the world and were a millennial brand so there is a blot of demand. So we Just Announced 15 new networks around the world and 50 countries. Africa, southeast asia. India were very excited about. Why not organic, why not go in there by yourself . Speed. I think if we went into india on our own it would probably take us 10 years. Were from canada. We started in canada. And we did a deal with rogers. We did a jv with rogers out there for a network and mobile and online. And it is sort of 10xed our business. You launched vice land. Has in new show in the work that you might take a breather and focus on hiring for those projects before looking out ward. I think it is the best time in history to be a content creator. Right now you have this consolidation happening in media. And for us we are growing. And i always believe strike while the iron is hot. And were hot right now. So the viceland content, the people really want it. They want do deems with us. And bring our content to their countries and were excited to do that so why not. Talk about ratings for viceland. You have given yourself a grace period a few months where as most nascent networks would say wii need a few years. Well were aggressive. I think the initial data were getting is very exciting for me in that we are sort of aging down. Very flueaffluent, well educated bringing millennials back too tv. And to answer your question about why 50 networks, our model is difference. Everyone says your a lab and device is difference and try to measure us on the old school metrics. But you are an advertising based Business Model and advertisers care about ratings still. Were a metrics based and we have a lot of metrics that are amazing. And b there is a different model now. Because the content is so good you can make a lot of money into the licensing now. Mobile, online and tv. There is a ton of money to be made there. Who is the thorn in your side right now in the media . My age. Its a young mans game. Too old too quick. Right now in media were lucky but were looking at old media targets. We were everybodys kid brother until we started taking a lot of money from people. And now there are some you know, they are starting to throw some spears but we can take it. You are happily taking the money from people, from bob iger. Jeff. James murdock. Do you feel like they are waiting inality the wings the eventually buy you . I think they are dipping their toes in the water. Because we are making a lot of experiments. We look at the network as a labott. And trying out things. Laboratory. All of this new stuff, which its much cheaper for them to experiment with us. Was because if we fall on the face they can take the learns. I think they all see us as a sort of guinea pig. And if we do well, they do well. If we do poorly, then they do well as well. So they are smarter than me. You cant share everything but you said revenue was supposed to hit a billion last year. And at some point you would like to go public if one of those cant buy you. What are those conversations right now. I think we have a decision to make as a company. Because were having a very good year and at some point this year we are going to be priced out of market. So well be too expensive i thought you were going make that decision last year . If were going to go public or not . Yeah. Well there are a few companies that have more money than we thought they did. Like who . Well there are only four or five Companies Available now who is your ideal owner if you are selling today is this. Look, i think Going Forward i think if you look at Companies Like apple, google, facebook, snapchat. There are a lot of synergies there. You know, i think that you know, disney is a great media company. They are already a partner. They are the biggest and what they did, you know, with pixar, marvel, lucas film was amazing. I think james is a really smart guy. I also think hes going to take that company very far. And i think jeff is a great guy. Ceo shane smith. Last question in particular, the first part of the answer whos got the money or where would you be looking, it seemed to be apple, facebook, netflix. Which makes his prior comment a little curious, in a year well be priced out of the market. In other words, well be too expensive. Youll never be too expensive for apple to buy. So it seems interesting that he would actually think that theres this moment of truth coming when you have to decide either to be a stay where you are company, or basically sell for what youre worth today or tomorrow. I honed in on the same thing. I thought that was so fascinating, that those were the first potential buyers. And these guys, too. Its almost like hes a conduit to help bring this old media guys to the new media guys. That may be a play for all of them. One thing i will say is, whats interesting, saying that you are a millennials media outlet is going to erode over time. The oldest millennials are 36 years old right now. Meaning the entire generation is merging into what was always the core demo for all media. In advertising. So basically all advertisers have looked for people under the age of 40. Its no longer going to be a distinguishing factor. Not saying old media wont figure it out quick. His great line when she asked about his biggest concerns. He said, my age. In terms of the size of the demo, the boomer demo, still huge. But this is bigger. Keeping money safe is important for any business. But its vital to the marijuana industry. Many shops are cash only. Well head live to a dispensary to see how to keep the books straight and cash safe. With usaa is awesome. Homeowners insurance Life Insurance automobile insurance i spent 20 years active duty they still refer to me as Gunnery Sergeant when i call being a usaa member because of my service in the military to pass that on to my kids something that makes me happy my name is roger zapata and im a usaa member for life. Usaa. We know what it means to serve. Get an insurance quote and see why 92 of our members plan to stay for life. Pot is legal in 25 states now. Its still illegal on the federal level, which means a lot of pot shop owners are dealing in cash. One company is working on keeping that money safe and the books straight. Ayman . Reporter yeah, hi, kelly. This is a legal Marijuana Dispensary in portland, oregon. Were learning about the difficulties they have. They operate fully in cash because its tough for them to get access to the banking system. No credit cards here, cash only transactions. Thats created an opportunity for a whole group of financial entrepreneurs who set themselves up as middle men between the marijuana businesses and Banking Industry itself. One ceo down in las vegas, a Company Called greeniosk, an atmlike machine that users can go to inside one of the marijuana dispensaries. That keeps the cash secure, and a record of every single transaction. They get a voucher which they can go to the counter and exchange for their marijuana product. Thats an example of the products out there on the scene for marijuana businesses out there. One thing theyre learning in vegas is its so similar to the gaming industry, keeping organized crime out of the legalized businesses. Heres what he had to say. How do you get rid of the organized crime in these type of businesses is by adding solid compliance. Theres no secret about it. Reporter so he talked about legal compliance. The effort of all these businesses to stay on the right side of the law. Look at a maturing industry here in terms of marijuana, this is a product called golden. You already have brand names out there. This is one gram. This is a golden brand. Youve got things that might be a little bit more familiar to you from your dorm room days, kelly, i dont know about you or necessarily me, but this is a giant red bong. And theyre for sale here as well. As far as im concerned its a beaker for chemistry class, ayman. Reporter this is for chemistry, yes. Thank you, ayman. Tomorrow brings voting for the brexit vote. In a world held back by compromise, businesses need the agility to do one thing another. Only at t has the network, people, and partners to help companies be. Local global. Open secure. Because no one knows like at t. [phone buzzing] some things are simply impossible to ignore. The strikingly designed lexus nx turbo and hybrid. The suv that dares to go beyond utility. This is the pursuit of perfection. But having the zestimate in which they kind of calculate out what the approximate value of that house maybe should be, it took all the scary risk away. Whatever home means to you, well help you find it. Zillow. But they demand the best shopping experiences. They may want the latest products and services, theyre your customers. And by blending physical with digital, cognizant is helping 8 of the 10 largest u. S. Retailers meet their demands with more responsive retail models. Ones that transcend channels and locations, anticipate expectations. Creating new ways to engage at every imaginable touchpoint. Its a new day in retail, and together, were building the store of the future. Digital works for retail. Lets talk about how digital works for your business. Welcome back. Were waiting for pricing from twillio. I think it goes at or above the range. Final thought is i dont know what theyre going to do in britain, but i think they should leave. And i think that whole eu experiment should be unwound. We had bed, bath beyond reporting. Movers there for you too. To carols point, the socalled brexit vote is tomorrow. And cnbc will be covering the results and Market Reaction starting at 5 00 a. M. And then all day friday. By the way, probably pretty late on thursday, too. Time for fast money. Fast money starts right now. Live from the Nasdaq Market site overlooking times square. Your traders on the desk are here. On fast, the man who called the demise in valeant. Andrew will be here in an exclusive interview. A top bond manager said he knows why global rates remain so low. Its got nothing to do with Central Banks. Later, for all theal