Transcripts For CNBC Closing Bell 20160722

Southeastern germany. Right now, nbc news is reporting several people dead. Several injured. Christina yates, one of the producers here as you look at the google layout of the Shopping Center, spoke with a Police Spokesman and he confirmed to her theyre looking for three suspects with long guns. Long weapons. Now, this gels with witness reports earlier. Munich Police Declared what theyre calling acute terror status or acute terror alert. As a result of that reportedly theyre asking off duty police officers, nurses and doctors to report in because we do not know how many casualties they are. There are various reports at this hour. Ranging from casualties from one to 15. Depending on which news service you use. Our nbc producer andy eckert on the ground in a city just outside of frankfurt talked to police. Nbc comfortable with several killed and several injured. Transportation has been shut down into and outside of the area of munich. People are being told to do what is our equivalent of shelter in place. Theyre also asking people not to shoot cell phone video or pictures and post it on social media because if the suspects who are still at large are able to access that and see where the police are stationed, it may help the suspects. Theyre still evacuating the mall at this hour. You can see people still evacua evacuating. And, of course, this took place several hours ago. It is now after 8 00 i believe german time. Theyre looking for the three suspects. Theyre still at large. And we will keep you posted on any updates as to the injuries or the casualties at this point, bill and kelly. It is still a fluid situation. They have a lot of Police Presence there. You can see them right there. As theyre trying to figure out who is who. Where theyre going. These actually were photographers and they were in the background there and as you can see, they have their police credentials on. I looked at the video several times and they were coming out and they had their hands up. You can see the police with their weapons drawn because no one knows what the suspects look like yet. They dont know where they are. Theyre still at large. So at this point, everyone is a suspect and theyre being extremely cautious. So i will turn it back to you. Theyre calling this guardedly and we attribute it to reuters but theyre saying they suspect this is a terror attack. Nbc news is not confirming that. That is reuters. Back to you. Sue, thank you. Boy, underscore once again the importance of National Security as a debate in this election cycle. John harwood just arrived to philadelphia for the Democratic National convention. From cleveland where we were at the republican one. Law and order is the theme of republicans laying out. Attention shifts to the democrats now. Reporter thats right. And an event like this plays right into the message that donald trump was striking last night, kelly, that you and i watched together on the convention floor. On the other hand, youve got a pivot by the democrats to their convention to Hillary Clintons Vice President ial choice. Weve been expecting that to come this afternoon or tomorrow morning. Given the stunning events, the shocking events that are happening in munich right now, it is possible that that would push back, you know, the clinton team had said that they were going to make a gametime decision on the rollout depending on the aftermath of the donald trump speech, the Donald Trump Press Conference today for that matter. Now you have this news event getting in the way so its possible to be pushed back but we dont know. She has a rally in florida at 5 00 p. M. Theres been some question about whether either before or after that rally she would release a text message announcing the vp choice. We expect her to appear with her choice tomorrow in miami. Interesting tim kaine who by all accounts and my own reporting is frontrunner for that job. I expect that he will be chosen. Is a fluent spanish speaker and relevant in south florida. And hillary has said she wants somebody or at least the reports have been that she wants somebody with National Security experience. Does tim kaine possess that . Reporter he does at the Committee Level in congress. Not in any sort of administrative or expect i have branch position. Tim kaine is a former mayor of richmond. Governor of virginia. Democratic national chairman. Now u. S. Senator from virginia whos served on the Armed Services committee and he does have some experience, of course, virginia has a lot of military installations and somebody to plausibly convey the knowledge and background that you would want to see in a Vice President ial candidate. Im just wondering if given the events, this is the Second Attack in germany in a week. You had the attack in baton rouge last week. Theyre just piling up here. You wonder if they have to change the agenda, the Democratic Convention to some degree to address this. You cant ignore the events here. Clearly. Reporter no. I dont think they would ignore them, of course. And there have been so many events lately in france and San Bernardino and elsewhere that i dont think it was ever in the cards to ignore it. This freshens up that argument and it creates an interesting question about who benefits because donald trump is a candidate whos projected strength. Thats one of the things that has attracted votes to him. On the hand, Hillary Clinton having been a secretary of state has clear experience in Foreign Policy and in our polling when you ask whos better on terrorism, they say trump. When you say whos better on Foreign Policy, they say clinton. So, how exactly is this interpreted . How do the things net snout we just dont know. We have to watch the polling. All right, john. Thanks. I knew they werent going to ignore it but might have to emphasize it given the importance and prominence in the news right now. I get what youre saying. Thank you john. See you later. Well keep you updated with the developments in munich. Gaining back roughly half of yesterdays declines. Holly list of btig is with us from chicago. Larry glazer from mayflower advisers on the panel today and contributor peter costas next to me at post nine and highlights the global risk factors that are still in place here and dont go away. This seems to be a continuing theme and i dont know the answer. You know . I dont think anybody really does. I think theres a lot of complex moving parts to every situation and it becomes, you know, as far as like a trying to figure out how to invest around this, i think that you really out in the dark. I dont think anybody really knows. And i mean, id like to be the one to say i have an answer. I dont think anybody has an answer of how to, you know, number one, how to deal with it or how to protect yourself as far as financially. Do you have any answers, holly . Just another thing for investors to ponder here . Well, other than throwing bat darths at the wall there are ways to look at where we think yields will go but youre right. It is a bit of an uncertainty here and many things, terrorism, whether its the economy, whether its brexit, but we do think that the investor will continue to go into the treasury market. Where else do you get yields . G8 countries, only one is higher than the u. S. And thats russia and clearly not getting the safety of the u. S. And given where yields are now i think well continue to see them lower given the uncertainties. I could easily make the case that the 10year goes to 1. 18 and futures terms puts up back near the 2012 high over 1. 35 but i think as long as youve got that uncertainty, kelly, you continue to see the lower yields and any uptick is probably a buying opportunity. You know, larry, at times like this, an event like this happens, you look to see for any market response, whether people rush to gold or the dollar or treasuries or something. Thats not really happening but it is in front of us right now when we talk about how cash levels are at their highest level in 15 years. I mean, people have already rushed to safety because this risk continues to go on day after day, doesnt it . It does. Really. That safety trade is long in the tooth in this rally. Look. A dow 18,000 plus, the question we need to be asking ourselves is, how are we doing . If we watch the Republican Convention last night, seeing the events in germany today, if you look at global bond yields close to zero, look at earnings and Revenue Growth and seem lackluster at best, the question is really a concern. But flip side to that if you see the unemployment rate, robust stock market rally over a few weeks and an administration that takes the other side of the trade, you might get a different picture. I think regardless of the camp you fall in, 18,000 plus on the dow, there arent a lot of bargains to be had in the market and recognize the proof is in earnings and today Something Like starbucks, netflix earnings and pretty lackluster in the higher multiple names and the value trades, the unloved sectors, the sectors that nobody wanted like banks and bio tech starting to act better and thats a playbook for the second half of the year. Peter, this morning the dollar stronger in part, the british pound weaker, euro weaker. Flash pmi data, for the uk especially werent all that hot and the dollar index now at 97. 5. It is going back up towards maybe not the year to date highs but headed that way and see the pressure on oil and other areas and this afternoon to feed into that dynamic. Yeah. I mean, you look at the dollar and you have to be a little concerned about the strength in it. I think that thats going to play out in the second half of the year. Its going to impact a lot of the multinationals earnings, its going to make it worse. So i do think that thats something to be very, very conscience about. One of the things that i think that we need to be aware of is that im just looking at the numbers here ill get out of your way. The markets getting tired. I think we are at a very tired phase. We are reaching new highs each day but the highs only 35 or 40 points above the last close. So to me that just tells me things are starting to run out of steam and i think that this is something and, you know, im bullish long term and right now i would be cautious. Same question quickly to you, holly, on the dollar. Would you fade the move in it now that we have gotten up to the levels, 97 1 2, 99 or 100 recent high there. Does it put more pressure on the commodities or as we move to get more understanding on the tragic events just unfolded in germany, do you think people back off the trades a little bit . I think right now i come from the background and the trend is your friend and the strong dollar right now you may say is due to some of these flight to safety events, things going on around the world. But also, if people are going into treasuries like we see here, you need to buy dollars to finance that. Granted if the stocks are only moving 30 or 40 points higher each day and you need money to buy those, especially coming out of the foreign stock markets and into the u. S. , so again, you need to buy dollars to finance that, and keep in mind, also, its sort of a self serving prophesy and the stronger dollar is keeping inflation and price pressures from coming into this country being imported here or even just from building here which is also then helping keep pressure on the yields to move even lower so i think the dollar could still go higher from here and yields lower, too. We have to go. The safety trade is very quickly. Very pronounced today looking at at t. Mediocre earnings. 4 dividend yield abe could be selling asbestos today. We are seeing it play out in how they invest and how conservatively to be. Good point. The rush to yield is certainly still with us right now. Thank you all. Have a good weekend. Thank you. About 45 minutes still to go in the session. The s p up about 8. Transports up 100 points today. The nasdaqs up 25. Up next, is the economy really as bad as donald trump seemed to say it was . If so, hows he going to jumpstart it . Two experts will weigh in. Also ahead, valaent fa pharmaceuticals under pressure of a new treatment and details coming up. Foand millions moremericans lwho feel its effects. S, lets walk together to make an even bigger impact and end alzheimers for good. Find your walk near you at alz. Org walk. Will your business be ready when growth presents itself . Our new cocktail bitters were doing well, but after one tradeshow, we took off. All i could think about was our deadlines racing towards us. A loan would take too long. We needed money, now. My amex card helped me buy the ingredients to fill the orders. Opportunities dont wait around, so you have to be ready for them. Find out how American Express cards and services can help prepare you for growth at open. Com. Welcome back. Lets go back to sue herrera at cnbcs headquarters with more on the breaking news on the shooting in germany. Several people killed, numbers injured. It is a developing situation. President obama is briefed on the situation and a short while ago he gave these comments. Lets take a listen. There were shootings in germany and we dont yet know exactly whats happening there but obviously our hearts go out to those who may have been injured. Its still an active situation and germanys one of our closest allies so we are going to pledge all the support that they may need in dealing with these circumstances. It is still a developing situation as you look at these pictures outside munich. It is evening now. Theyre still looking for three suspects. We will have a complete roundup for you in just a few moments because we are getting some new information in from the police. Nbc news just trying to verify that before we bring it to you because theres multiple Police Spokespersons commenting right now. Back to you. Yes. We have been noticing those multiple comments. I know what you are talking about. We look forward to those verifications later. Thank you, sue. You know, lets look back to last night. Donald trump painted what some are believing to be a pretty gloomy picture of the american economy. Joblessness, poverty, crumbling infrastructure, failing schools. Are things that bad economically in the United States and does mr. Trump have the solutions to the problems that we face . Diana roth is former economic adviser to president george w. Bush now a senior fellow at the Manhattan Institute and with blake rutherford, a democratic adviser and a delegate next week. Diana, how would you characterize the economy . We talk about stock prices at alltime highs. Well, we have a gdp growth rate thats stagnating 2 . We have havent had serious growth since the recession. We have a Labor Force Participation at 1978 lefting before the 1980s and millions of women moved into the workforce and we need to do better. To provide jobs for young people and provide jobs for everybody who wants one. But these people who want to move back into the workforce and Donald Trumps plan to have lower taxes, reform regulations, expand the Energy Sector are and also have educational reform would be very, very beneficial in jump starting the economy. Thats exactly what the economy needs now. All right. You know, blake, look. Its politics time. Campaign time. It behooves both candidates to paint a bleak picture saying that they have the answers to solve those problems. So, how do you suspect it will be portrayed this week in light of what donald trump said this week . What is it that hillarys going to say about the economy that she can fix . Well, i think youre first of all exactly right. Donald trump painted perhaps the gloomiest picture of america and America Economy we have ever heard from a president ial candidate at a convention or anywhere else. And i think what you have to focus on first is whats donald trump going to do about this gloomy america that he seeks to lead . His plan, quite frankly, achieves very little and, in fact, does a lot to harm working families. You have a tax cut plan thats going to add 10 billion to the national debt. Youve got a trade policy that is certain to ignite trade wars with china and mexico through these extraordinary tariffs that trump wants to place on people. Hes looking at giving 120,000 millionaires roughly a 3 trillion tax cut and doing nothing for working families. He wants to give thats just not true. You have not read the plan. Tax cut. These are very well stated facts and explode the american debt and do nothing to put people back to work. Okay. To do anything to help jobs or our economy or the probables that the American Public faces. Okay. Thats just not true. If you pay if youre earning up to 50,000 a year under the trump plan a household pays no federal taxes at all. That certainly helps working families and the reason that tax cuts in general hurt help upper income people more is because the top 50 pays 97 of all the taxes. But his plan does have benefit to lowincome people because many of them taken off the rolls. As to trade policy, the u. S. Trade representative issues reports every year called 301 report that is detail the theft of intellectual property by china, russia, india, algeria. They have 11 countries on the watch list. Right now, we do nothing about it. Even though its obamas white house. U. S. Trade representative putting out these reports. Yeah. Blake donald trump will do something about it. This is important. Theft of intellectual property. Blake, i wanted you to address this idea of that was constantly hammered at the Gop Convention this week which is that Hillary Clinton would be a third term of barack obama. Do you expect her as she has to kind of hold herself tightly to the president as, you know, when youre there in philly next week, or do you think shes going to take more of a, hey, heres what i would do to acknowledge some of the things that maybe people are looking to change in november . Well, look. I think the contrasts are going to be obvious. Where donald trump is promulgating fear, you hear Hillary Clinton promulgate hope. I think she sees hope and opportunity for the american economy. I think shes got a plan thats certainly going to help make college more affordable, address the student debt crisis, going to provide tax cuts to the middle class to help them pay for prescription drugs, to send their kids to college. And to address the types of things that really affect working families. But i think elections are about the future. And i think Hillary Clinton certainly is going to she is going to arctticulate a vision r the future certain to be positive and long on substance. Theres just not a lot of substance to donald trump. Is she going to say to the, you know to the base, whomever, voters say to them, look, if you want, you know, a third term of president obama, thats you know, vote for me or do you think shes going to try to take things in a different direction . Well, certainly, i mean, look. We know that the president has come out and made a very strong endorsement of her candidacy. I think certainly thats right. Another obama. Play a prominent role in this administration and if you look at where we were in 2009, compared to where we are today, you have to like the Economic Trend lines. But i think she is going to set forth a vision for her america. Okay. And what americas going to be like under her presidency. If i can just respond im sorry. Wed love to spend more time and we will next week, thats for sure. Okay. Ill hold you to it. Appreciate it. Thank you. Coming up, we have about 35 minutes to go in this mrkt. With the dow up 48. Not a record today. We had a decline yesterday. So the industrial average up 41. S p up 9 1 2. Verizon closer to a deal for core Internet Business of yahoo later, the battle of the billionaires, amazons ceo bezos one ups Warren Buffett on the global rich list, still to come. Your Insurance Company wont replace the full value of your totaled new car. The guy says you picked the wrong insurance plan. No, i picked the wrong Insurance Company. With Liberty Mutual new car replacement™, you wont have to worry about replacing your car because youll get the full value back including depreciation. And if you have more than one Liberty Mutual policy, you qualify for a multipolicy discount, saving you money on your car and home coverage. Call for a free quote today. Liberty stands with you™. Liberty mutual insurance. Welcome back. Lets take a quick look at valaent pharmaceuticals today down more than 6 under pressure again. The Specialty Drug maker saying the food and Drug Administration delayed approval of an eye drop product to treat glaucoma and theres deficiencies of a production plant in tampa, florida. Thats an asset thats often brought up. That is their biggest source of income right now. So its very important. Well, at long last we believe verizon may be closing in on a deal to buy yahoo s core Internet Business. Jon fortt has the latest developments for us. Jon . Thank you, bill. Recode reporting that the magic price tag about 5 billion for the core business and that the likely buyer is verizon. The goal would be to create an ad network with the scale to take on the likes of google and facebook and dominate the market for targeting advertising, especially in mobile and of course yahoo s asian investments are not part of the deal. Theyre separate. Yahoo just reported Earnings Results in line and sales down 19 from a year ago and that drop came despite revenue in mobile, video, native advertising and social. Yahoo s key growth areas rising 27 . Verizon along with aol purchased a while back gets yahoos 200 million users and add to the heft of the advertising strategy, guys. Jon, this is long telegraphed. Did they so if its almost 5 billion, some reports seem like its much on the lower end, maybe 3 billion range. Even as all along verizon was going to be the buyer here and i wonder, you know that should have given them some negotiating power for a pretty good price, right . Theres talks of yahoo worth everything from zero and up from there and has assets important to the right sort of buyer. From those 200 million users to some of the mobile products that they have been able to build out. They have got a number of properties including bright roll and flurry that have added value and give an insight into the direction of the mobile market at this point. So, you know, to the right buyer, there was certainly value there and argue that they had a way forward with strategic areas growing despite overall revenue coming down and not as if they had zero leverage. Very quickly, jon here, ma marisa mayers trying to turn around the company for four years . What will verizon do that she shouldnt do . They dont have to turn it around. They have an ad business working. They can cut at yahoo. They wont need all of the trappings of an independent Public Company so i think anybody should expect cuts here. So, they can do that. I think one imagines that theyre expense stockwise, equity for employees not be the same under this kind of a structure so i dont think they have the same task that mayer had. Theyre building something bigger with a different kind of cost base. Thank you, john. Jon fortt. Yahoo shares up little more than 1 . Now the latest on shootings in germany. Sue herrera has more. Its developing as we speak. Heres what we know at this hour. Were going to show you some live pictures. Theres a police you ins conference going on in munich right now. Its starting to wrap up. The spokesman just said that at least six people are dead. Many are injured. They did not put a number on that. Theyre looking for at least three suspects. We have dramatic cell phone video taken just as the shooting began right outside the Olympic Shopping Center in munich, germany. You will see a man, hes going to be the righthand side. He is dressed in what appears to be a black vest. He may be one of the three suspects. He starts firing the gun outside the Mcdonalds Restaurant. Obviously, the person who was taking the cell phone video started to scramble for cover which is why you see the ground at that point. Now, we have also isolated a part of that video. Where if you take a close look and see the alleged suspect pointing his gun and then opening fire. A munich Police Spokesman said that witnesses reported seeing three shooters with what they call long guns who attacked outside that Mcdonalds Restaurant in the munich Shopping Mall. Police are hunting the suspects and so far theyre still at large. No one is in custody. All trains, trams, buses and subways in the city have been shut down. Police have telling residents to stay indoors. It eels our equivalent of shelter in place. You can see theres a very large Police Presence at the mall and still searching for the suspects. Theyre asking residents to avoid the public areas in and around the Shopping Mall. They dont want them to take pictures of the police and then post them on social media because they think it will help the suspects if indeed theyre not still in the mall. And have access to social media. The suspect attack in germany, this is this week. It occurred just before 6 00 p. M. Local time in the northern part of munich. President obama commenting on the situation saying, quote, our hearts go out to the victims and we pledge all the support that germany needs in dealing with these circumstances. Now, guys, as we get more details coming out of this news conference, it is a fluid situation. But they are still on the loose. There are some unconfirmed reports of various news organizations that theyre starting to clear some of the highways outside of munich in case these suspects have gotten out of the Shopping Mall and may be trying to make the way out of the city center. As it develops, well get back to you with more. A brief question because did they confirm the police that there are three suspects or is that still being determined . The police are saying three suspects. That is based on witness accounts. As you can see as you saw from the video and hard to see, but if you run that video, you will see him right outside of the mcdonalds there and youll see people start to turn around and start to run. You see that there on the lefthand side . So thats they have witness accounts in various parts of the mall which lead them to believe and gave them the confidence to say that there are three suspects and theyre all still at large. All right. Sue, thank you. Sue herrera. Keeping you updated as we get more information. 25 minutes left with the dow up 47 points. The s p up 9 right now. A leading trader will tell us what hes watching into the close here. The final session of the week with all of this happening, the s p in record territory. Well be right back. Welcome back. Looking to close down the trading session. On the floor here with kenny pull ka polcari. The attention is in germany. Is there a response to the events or the theme . No. I think part of the ongoing theme. As difficult in germany to watch and kind of be, i dont think the action today is related to that at all but the theme. The markets up 10 on the s p and testing the trend line again. But we keep getting stuck there. Next weeks a big week. Lots of macro data. Gdp, the fed. Theres positioning in and around whats going to happen next week and i think much more so than germany. We have some data today. You know, if youre watching for the uk, the flash index is not that great. The pound is weaker. Is that partly why the dollar is strong, a headwind here . I think it is. And concern of brexit and uk and flight to safety and the dollar is that. And then if theres some speculation at all that theyre going to throw september back in the mix next week, the dollar increases and its an interesting time. Next week is interesting week. Oils taken it on the chin. But i think oil is okay. Trading at 44. 5 at the moment. I think its stuck in here between say 42 and 50 and going to trade there for a while. All right. Thank you for your time. Appreciate it. Bill . The industrial average, the dow, halted a ninesession win streak yesterday and despite green arrows overall, the industrials as a group lagging. Courtney is tracking that. Joining us now. Only negative s p sector for quite sometime and then still remain a laggard and earnings from players and kind of dower commentary about the economy. Look at honeywell behind me down about 2. 4 . Honeywell actually did beat on eps, revenue missed. A mixed forecast going forward, though, when it comes to sales and earnings. The ceo said theres a challenging Global Economy thats a drag on sales. With aerospace, 40 of honeywells total sales, those unexpectedly decline, a myriad of issues there. There was some delays, pleegs issues, higher incentives to commercial aircraft makers so all of that a drag on honeywell and dragging down the industrials and then General Electric and that company with a pretty good quarter, strong profit, revenue up 15 year over year and actually guidance going forward, the Company Expects strong organic growth in the second half. But still, the diversity and scale of portfolio to enable ge to perform well despite volatile and slow growth economy. Thats interesting words, of course, out of ge when they still performed fairly well. When it comes to their aviation unit, only about 20 of their sales but thats actually been quite strong. And the unit ceo for aviation expects it to continue going forward. When hes talking about loads, he is talking about low fuel prices saying thiss very good. By the way, speaking of aviation, boeing also still taking it on the chin today, though performing better towards the end of the session and down fractionally. But remember, yesterday we heard from boeing taking a more than 2 billion charge and thats related to aircraft programs. So a lot of movement within the industrials. Some good, some bad. But challenging commentary coming to the Global Economy and aviation is a big part of that. Bill and kelly . Even Howard Schultz saying earlier today this is a very challenging environment to conduct business in right now, you know, completely different area but still i was surprised starbucks shares higher on the session today even after this. Thanks. Thank you. 19 minutes left in the trading session. The dow up 50 points. Not a record territory and the s p now. Crawled back up 9 1 2 points. Were at 2174 right now. Coming up, an update on the shootings in germany. Republican convention is over. All eyes turning now towards Hillary Clinton and the democratic gathering in philadelphia. The vp selection may be released shortly. Well look at the possible choices coming up. Where, in all of this, is the stuff that matters . The stak are so high, your finances, your futur hodo youolve this . You dont. You partner with a firm that advises governments and the fortune 500, an can deliver insight person to person, on what matters to you. Morgan stanley. Wont replace the full value of your totaled new car. The guy says you picked the wrong insurance plan. No, i picked the wrong Insurance Company. With Liberty Mutual new car replacement™, you wont have to worry about replacing your car because youll get the full value back including depreciation. And if you have more tn one Liberty Mutual policy, you qualify for a multipolicy discount, saving you money on your car and home coverage. Call for a free quote today. Lirty stands with you™. Liberty mutual insurance. Hthis bad boy is mobile trading desk so tt i can take my Trading Platform wherever i. You know that thinkorswim seamssly syncs across all your devices, right . Oh, so my customstudies . Anywhereou want to go the markets hot sync your platform on any device with thinkorswim. Only at Td Ameritrade modest gains for the major averages today but enough for a record if we were to close here for the s p. Its up over 9 points at 2174. Starbucks was lower. Its come back, though, after reporting disappointing revenue late yesterday on this program. They reported same store sales growth for the americas of 4 for the latest quarter. That was down from 7 in the previous quarter and below street estimates. Company ceo Howard Schultz spoke with squawk on the street this morning. He said china is the key to his companys future growth. With almost 2,300 stores and over 100 cities now, were opening more than a store a day. The equity, the brand in china is probably as strong as any western brand. 7 comps. We are opening a store a day. So, were building the kind of business in china thats going to rival the u. S. And probably one day perhaps be bigger. I mentioned the stock was down earlier. Down over 3 as a matter of fact. Down earlier but it is up a fraction right now. For the year it is down 3. 7 . All right. We continue to cover the breaking news of that shooting in munich where a Police Operation is still under way at this hour. With us now to weigh in is retired army colonel jack jacobs. Thank you for joining us again. What is your response to what is playing out in germany . Well, everybodys going to focus on the immigrant population. There is Something Like 500,000 immigrants from the middle east, 200,000 of them from syria, and a lot of those recently. Open borders been a big problem inside of europe and theyre going to be lots and lots of people in a variety of countries and probably here in the United States, as well, who are going to point to open borders and immigrants as the principle cause of the problem. What is interesting here immediately that comes to mind is that they had long guns. Its difficult to get licenses in germany to get rifles. You can get them but it requires an enormous background check. Takes about a year. Right. Interviews and all the rest of that stuff. So its so interesting to find out how they managed to get the guns and walk around with them without being detected. You know, we should emphasize we still dont know who these people are today. You know . And who theyre looking for. Theyre looking for three people they said and no idea who they are although on monday at the train station there, it was a young afghan who one the suspect in that particular case. But how do you 0 protect against that, colonel . Okay. We know the ethnic makeup in germany, the people that migrated there. How do you protect against that . Well, short answer is you cant. You cant do it physically. Obviously. I mean, theyre shutting down all of munich, trying to today. And stopping all the trains and so on. Whoevers in munich cant get out and you cant get in and all the rest of that stuff. Thats impossible to do over a long period of time and i would argue you continue do it in any case even a short period of time and you need very, very good intelligence. And having good intelligence is extremely difficult to get. You have to be able to eavesdrop on people, super vise everything thats going on in the lives of very large number of people. That isnt going to happen. I dont think theres the kind of political will anywhere in the United States, in europe, in germany to be able to do that. But thats what it takes. I just wanted to briefly come back to the point about the rifles, colonel. I thought there was actually somewhat of a strong black market trade in these firearms taking place in europe today. Yeah. There is. And thats also interesting to note. Theres a big black market trade everywhere in weapons of all types and varieties. In the United States, when somebody winds up trying to buy explosives, for example, invariably its from a fbi agent. The same thing is true overseas. If you have good intelligence operations and germanys working really hard both inside the country and other European Countries and with the United States to trade intelligence information. When people get arrested for trying to get weapons, theyre getting them from theyre trying to get them from the authorities in sting operations. So, yes. Theres a black market trade but invariably a lot of the people trying to get the weapons are not smart enough to get them through normal black market channels but they wind up trying to get them from policemen. But yes. Theres a lot of flow, theres a lot of flow of weapons back and forth. Youre right. All right. Colonel, thank you. Retired army colonel jack jacobs one again today. Appreciate it. Ten minutes left to go in the trading session. With all of this happening, the s p 500, its looking like it could be a record close for that index yet again. The transport index, there for the dow up 112 points. The dow itself up. David darse will join us after this. Make healtare more personal with patientcentric, digil innovations; that can interpret personadaces and enle tarted care, to Cloud Platforms that invi providers to collaborate witthe patients they rve. Ats why over 90 of the top 25 global pharmaceical companies are turning to cognizant. Our domain experts, technologists, digital and data specialists, clinicians andcientists are ansforming the way Clinic Research sites collaborate with pharmaceutical companies, and enhancing Patient Engagement withnnovative platforms and solutions. Our population growing healthcare needs presengrowg opportunits for our clients to advance the fure of medicine with digital, and improve the quality of lives. 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Joining us is independent Investment Consultant david darst. On the floor of the market, another tragic day. Another shooting in germany. People are wondering, pondering, what do you do with it, the information sitting back here in the u. S. . One of the things i think thats led people all over the world is to find safety, no matter how low the yield and one of the things that led to the incredibly negative Interest Rates or ultra low. Our 10year is about 159. Something like that. Japanese 10year is minus 25 basis points. A german 10year, minus 7 basis points. A swiss 10year, minus 52 basis points. I would just say to the viewers, your viewers, be very careful because this reminds me of 1998. Not 1999. The year before the market and then took off further in the dotcom. Or 1988 before japan took off. Or 2007 before the house prices took off. It will go further. But be very careful from here on out. This is an act four of a fiveact drama and act five will be very exciting. What do you think the catalyst would be to push it higher there . I think i hate to say this. It could come from the currency markets. Thats one thing to watch carefully. Its so humongous. It is the lion basically in a circus. The lion tamer is the fed. But really, the lion is controlling the show. The lion could wipe out the fed if the lion wanted to. Based on that, Morgan Stanleys investment committee, which i sit on, this past week we basically have reduced in europe gdp slowing, earnings slowing. Right. And policy uncertainty. We have reduced in japan because theyre not moving fast enough on the structural reform and we increased, bill and kelly, in emerging markets, which have lagged, they have started to pick up this year. We think they can run further and small and mid caps in the United States cho are isolated of currency movements and theyre going to be i think beneficiaries of any tax reform and any Infrastructure Spending that follows no matter who comes into office on november 8th, 2016. Boy, is that a courageous move in emerging markets with everything going on. Instructive. David, good luck this weekend. Thank you. Well take a break here with the dow up 44. We had the closing countdown in just a moment. After the bell, we look to amazon. Great for books, music and dvds but what about College Student loans . The Company Giving back to School Shopping a new meaning. Well explain. Youre watching cnbc, first in business worldwide. Im onn my 60s. Iveot a. Biplan so when i found out medica doesnt pay all my medical expenses, i looen i got aedicart supplement insurance pla [ mtcall now a fd outu. Eligib for medare, your rt bknow medical expenses. 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Ca n to request yo fredecionde. And arn more abouthe kinds of plans that wl be here for yo now and down the road. I have a le of expernce. So i knohow important that is. All right. Very quickly here. You know what . I will have to check the numbers on the s p because were getting close to that level again. We are starting to see a little bit of selling coming into the market. Twoweek chart from the lows and lose that low or we probably have now, brexit lows on this chart. But its been a 3. 6 gain in the time and very close to an alltime high for an s p. Crude oil down today. The Baker Hughes Rig count way up this last week and pushed the price down. A lot of volatility in crude last few weeks. Down 1. 2 today and the vix is down again today. Were right at 12 at that level that people have been keeping an eye on. Courtney . And there was a lot of trading action this week dictated by earnings. Earnings. Another huge week next week. Biggest week actually. Is that right . Thursday is heaviest day. We have apple, facebook, exxon, boeing. Lots of big names next week and amgen, merck. Big players from every different sector and so far 68 of the earnings have been better than expectations. Thats stronger than what we have seen historically. And then same thing for those that have reported lower than expected and stronger than what we have seen and then next week and that can all change. Get ready for it. Thanks. See you later. So yes. If we hold right here, well have a record by fractions. On the s p as we go out for this friday. Girls who code. Sponsored by blackrock ringing the closing bell here at the new york stock exchange. And the Motion Picture and Television Engineers association ringing at the nasdaq. Stay tuned now for hour two of the closing bell. Have a good weekend, kelly. Thank you, bill. Welcome to the cloudsing bell. Im kelly evans. We are closing at record highs again on wall street. S p 500 adding about 9 1 2 points. 2174 or so is the level there. Half a percent. Nasdaq also up half a percent today up 26 points. Dow lagging a bit and added 51, closing at 18,568. Presumptive democratic president ial nominee Hillary Clinton set to pick the runningmate today reportedly. What they mean for the chances in the race for the white house. Also hearing from billionaire investor mark cuban asking the world to ignore what donald trump said last night at the rnc. Well get to the politics in just a moment. But first, joining the panel we have contributor evan newmark here with the kate kelly. Lee joins us. Where we stand on earnings so far this season and fast money trader steve grasso joining us in a moment here. Evan, we cant ignore whens also just happened. I dont know in terms of the market response germany . Shootings in germany contributed. The dollar is up above 97 again. Bond yields continue to go lower. I dont, you know, interestingly, i dont mean to diminish what happened in munich but the market kind of didnt it wasnt even like a speed bump for the market. The market kind of held steady right through the events, right through the coverage of it. Its hard to say on a friday and the summer, a lot of technical trading. Whether or not it actually had an impact. But on the face of it it doesnt look like it impacted it very much. And the point last hour, kate, people sitting here, investors, traders, every one of us trying to figure out the impact. Not necessarily an immediate one and will be longer term, especially starting to talk politics. Although i have to say about to concur with evan and sorry to say people are accustomed to repeat incidents of violence, possibly terrorism related, possibly not. Too early to say, obviously, in this case. This is the second act of random act of violence in germany after ax attacks on monday and dont know the details, of course. We are probably priced in for a volatile europe, not just because of geopolitics but brexit. The u. S. Looking relatively strong. I think this probably feeds into the narrative and for slightly different reasons. Lee, one impact, you know, the fallout is on the airlines so lufthansa talking about how it sees a drop in bookings, for other reasons issues for those. American reported this morning that kind of fits into the theme of earnings that, you know, how are we doing this far into the season . Well, you see delta not so well. American, bottom line numbers were pretty good. The funny thing is 66 of companies have beaten their estimate consumption number around 54 usual and market 68 , 69 against the sell side numbers and so the bottom line numbers for companies doing very well and top line numbers pretty poor. Not growing too much. About 48 of Companies Beating so a lot of buybacks. A lot of cost cutting. You know . That can only go so far. Steve grasso is here off the floor. What do you make of the trading activity today and seeing the strong dollar, the impact across the commodity complex . That correlation with the complex, sometimes on our off. So its really cant garner that much information and the correlation of oil and the s p, that as everyone on the desk knows 90 . Earlier. A short time ago. Probably, what . 70 now. Still higher than where it basically came from in the 70s. But i dont know if you can garner that much in the overall market other than what we know. The markets up 9 . Everyone thinks its toppy. Been toppy quite sometime. Hold the phone there for a second, everybody. Joining us on the phone is mark cuban. Mark, thank you for dialing in here. Listen. Sure. Your comments heard around the world. Deeply dissatisfied with the Gop Convention this week but dont you i mean, the rhetoric is partly politics. What is the deeper concern to express here . That there is no substance. Right . Its one thing to talk in headlines. And its another thing to, you know, understand the issues, convey an understanding of the issues, to show analytical stills and i dont think donald has done that. When it comes to the themes this week, we had them emphasizing law and order, for example. He picked mike pence and mike pence dwells on the tenure in indiana. You know, we heard from peter thiel last night, prominent venture capitalist, a libertarian type. Did anything you heard out of those people give you a different sense than what you heard from donald trump himself . Well, i mean, it doesnt matter whether its mike pence or peter thiel. It doesnt matter what they said. What matters is Donald Trumps approach to problem solving. You know, the one certainty about the position, the president of the United States, is that theres complete uncertainty. You dont know what the next day is going to bring. And so, you can, you know, make all the proclamations in the world about what you are going to do and every day seeing in munich, watching the news every day, every day theres something new and its impossible to try to predict, its impossible to try to preempt. No matter what you think. If thats the case and completen certainty, my opinion and the reason im speaking out, i want to see somebody that shows analytical skills, somebody that when something new comes, either, a, they dig in and learn or, you know, show the ability to learn and respond in a quality manner, or, you know, that they already understand those issues and are ready to deal with them. I just havent seen that from donald at all. Mark, its evan newmark. Hey. I have a question for you. Whos he addressing with that speech last night . There are people who are going to vote for donald trump regardless of what he has to say. So he has to be trying to reach a certain core group of people to win them over. What was his message last night . And does it really have to have anything more than emotional resonance with them . Its an emotional appeal. Not an analytical appeal. Your point is well taken and, you know, i think he was trying to reach those people disaffected and feel like they their dreams arent going to come true. Im a big believer in this concept that when peoples people have expectations about their lives and when they begin to realize that theyre not going to reach those expectations, they get disappointed, become disaffected and they react in different ways and one of those ways right now i think is supporting donald trump. And hes certainly playing to that. Now, do those people already believe in him and are they already going to vote . I dont know. But i will say this. It would not shock me if donald trump won the popular vote. And then, again, it would not shock me if donald got crucialed in the Electoral College because in my dealings with him and from those i have talked to around him and from what he said publicly, hes not a big believer in analytics. He is not a big believer in understanding the knew answnuan getting elected and not raising enough money to address the issues at this point. And so, you know, he could have gone he did go loud and clear to those disaffected people and its, you know, not surprising the response he got and i agree, evan, with your point. But, again, that doesnt make him the best candidate. You know . In my mind. And thats why ive spoken out. Mark, it is kate kelly of cnbc. Hi, kate. Youre an entrepreneur. There was an interesting poll on media. Com writer talking about the Tech Community ripping off the fact that peter thiel who spoke at the convention in favor of him and most of Silicon Valley is not. This, according to this poll, numbers stood at Something Like 10 , a few months ago and now more like 22 . But some people in the Valley Community feel that it requires a game changer, somebody whos antiestablishment to sort of get what theyre doing and create a business friendly environment. Now, that may just sound like im curious what you think about that idea and anything to it insofar as Hillary Clinton and the economic plan to represent the status quo. Okay. So first talk about donald. Whatever entrepreneurial bones in his body are long gone. Hes not a grinder anymore. We talked about that. When you see him approach things, hes at the hangar where the jet is, a ballroom of a lot of people, an arena, wherever he is. He really goes to talk to the greatest number of people possible. More credit to him for doing that. But i dont see him as somebody who looks at Small Business and says, you know what . I get you. I understand you. You, you know, theres not a list of entrepreneurs or Small Companies that hes invested in. There arent entrepreneurs saying he was my mentor and he really helps. You know . I remember having a phone conversation before him right before the cnbc debates and i said to him, donald, you know, if you go out there and just sit with a Small Business and show off your business skills and show people you understand Small Business, you know, you really could benefit from this. And really differentiate yourself. And he was not about that at all. I wont tell you exactly what he said but, you know, it was basically i dont do that. Mark and so, you know, so thats one end. As far as hillary, i have gone through the website, maybe not with a finetoothed comb but a comb and shes at least trying to understand that and talking to the campaign she is trying. Theres a proposal she has on there where, i mean, i may not get it exactly right but a 15 credit, tax credit, for small startup Oriented Companies that do that offer stock to their employees. If you offer stock to the ploes, a great incentive, a great way to deal with, you know, building the net worth of people whose net worth needs to be built and cant just save money and interest to accrue interest these days and a good program and took it along those lines. Yeah. Looking at donalds proposals, hey, im cutting taxes for everybody. You know what . Ive invested in over 150 companies and never once, whether a Shark Tank Company or any other company or companies i have started from the age of 12 have i ever brought up the issue of taxes in advance. And i dont see him talking about, you know, removing hurdles that Companies Face in terms of paper work, in terms of regulations up front either. Mark, let me ask you, because one of the themes that came up time and again at the convention, even among supporters you talked to who said they were going to vote for trump didnt necessarily love everything about the guy and said look at his children. Time and again this came up. They say look at the kids. Look at ivanka. How can he be that bad and that dangerous of a guy . What is your, you know, what did you think of the speeches you heard from the trump kids, ivankas in particular, and about i dont want to go there. Its not fair, you know, to say what i would say. What . Give us a what do you mean . Do you have personal dealings far different impression . It has nothing to do with his kids. Right . I wont go there. But do you think the point is valid . Let me just establish one thing. No. You dont think its valid based on your personal experience or not a valid thing for anybody to say about a candidate, snerd. I just dont yeah. I just theres no good way to answer it so i just pass on the question. Understood. I was going to ask you before you go, you spoke with him last year going into the debates. How was the relationship between the two of you been since . I mean, it seems to have soured at least from the public remarks. Of course it has. You know, and so, to give you the background, i would vote for donald trump over ted cruz 100 out of 100 times. You know . Ted cruz is a demagogue and hes smart and thats a dangerous combination. And i would say to donald, and i said i dont agree with most of you what you said and ted is dangerous and will help you all i can and some point you have to learn the issues. And so, when i kind of after he won, i said, congratulations. Great. And then i went and did an interview or said, okay, you know, time for him to start the issues and he emailed me through somebody and what happened . I said exactly what i told you directly. You have got to learn the issues. And until you do that, i dont see how i can support you and thats what i said. Yeah. Mark Meredith Macgyver being the one that wrote the melania speech . Yeah. He doesnt email, right . I would send emails and everything comes back as a scanned copy with his comments on it via meredith and she is first class in every which way, shape or form. But, you know, and i dont want to throw melania under the bus and to throw donald under the bus, think about what happened there. So melania, mrs. Trump, watched the speech, right, tells meredith, i like these passages. Meredith writes up the speech. Gives it back to mrs. Trump, mrs. Trump repeats the passages. You would think that, you know, when i read that i thought oh my goodness. You know . She is the one that, you know, committed plagarism. Right . She knew what she was saying. And the point isnt to throw mrs. Trump under the bus. The point is, this was donalds solution. Throwing his wife under the bus. You know . I mean, because the plagiarism didnt come from meredith. She speaks like five languages or something. But the point is he didnt take decisive action, right . Its plagiarism in any lang wang. She didnt know it was passages from Michelle Obama . Melania found the passages, conveyed them to meredith. Meredith sends those passages back to melania. Right, right. Why is that donalds if she could have caught that, where did donald come in there . He authorized meredith going public. And the whole thing of meredith going public confirmed yeah. Gotcha. The plagiarism. We love hearing from you on this stuff. Fascinating glimpse into whats happening with the campaign. Thank you for phoning in, mark. Appreciate it. Any time. Thank you. Thats mark cuban. We got to get back to the markets. Steve, a quick what do you think . Well, i just i find i love mark. Mark calls in to our show fast money all the time and he was saying it. Did the analysis on hillary, as well. Hillarys been in the public eye for 30 years . And marks said that at least she is trying to learn and trying to get analytical about it. But for me, she had 30 years to try and get analytical about it. Talking about judgment, with everything thats been in the media lately, all donald has to be better than is one person at this point. So i think that the high watermark is pretty low as everything that we have analyzed for the election. But i think its just unfair to point fingers. A parting thought on these markets before we have to go. So i think that you have hold these levels here. Up 9 . Pretty quickly. Right now. So we have to hold these levels in order to buy into the marketplace. And im not sure we can do that. But the market has defied all laws of probability. Whats the most important earnings to watch in a word or two from here . Enterprise tech. Really only thing with a lot of growth right now and i got to say technically on the market, overbought readings at the big of a breakout after a longterm consolidation from bullish long time for markets. So there. Well, i will give you one last word really quickly. The fed pushed everyone into the marketplace. Absolutely. If rates stay, theres no alternative. Tnia. Thank you. Appreciate it. Much more coming up. Catch grasso and the guys talking techs moment of truth with apple, google, facebook and on deck to report earnings next week. Whos setting up for the biggest moves . Tonight at 5 00 zwrirks Officials Say verizon is lead bidder for yahoo. Thats coming up. Hillary clinton could announce the vp pick in the next few hours. How they stack up against the pick of mike pence. Youre watching cnbc, first in business worldwide. Welcome back. Verizon nearing a deal to buy yahoo. Joining us is robert luna and jessica lesson. Thanks, guys, for joining us here. Jessica, what do you think . I mean, was it ever going to be anyone but verizon . Its the obvious choice. But i still think its the wrong choice. I dont think verizon should be buying yahoo. And while its looking close and tim armstrongs always wanted the deal, i dont buy the story of why it makes sense. Hmm. What story are they sort of painting for everybody . Verizon. The story is about synergies with aol, kelly. Its about they have aol. They sell online advertising. If you add yahoos a billion active eyeballs, you can make yahoo profitable cutting away at the business. Its not how the internetworks. The properties arent high. They dont have high engagement and growth and just combining it with a similar online media property isnt going to change that. All right. Robert, do you are you a fan of this deal . No. Kelly, i completely agree with jessica here. The turnaround at yahoo, two years into it now with Marissa Mayer and a company year over year with negative cash flows, negative operating cash flows. The company not able to turn things and. If you look at analysts expectations for the next quarter calls for another decline and starting to get a bit concerning here about the revival of the internet of the 90s with aol and now trying to buy into yahoo, both dying companies and looking at where it is today, facebook, google. Id much rather see them try to seek alliance with the companies versus this dead brand of yahoo and aol. Hey, guys, it is kate kelly. Interesting points here and, jessica, enjoyed your piece and why yahoo is a bad deal for anyone. What should happen toyahoo . Should it wither and die . It is a great question and something that marissa and the board is grappling with. You can continue to cut, cut, cut. I think that you need to have some original exclusive content. Yahoos tried this. They went big into online video. Trying to have programming other people didnt have. But it wasnt enough to really draw audiences. I think that is the right strategy but its just too late for yahoo. You know why im a big fan of this deal, kelly . Do tell. Why do you think im a big fan of the deal . No clue. I cannot bear talking about the fate of yahoo anymore. This is dragging out i mean, how many ceos has yahoo been through in the last decade, same story over and over again. Lets just hope verizon actually manages to buy it so we dont have to waste a lot more time fair point. But its a Small Business now and not trying to be flip about it. Its no longer within the scheme of Media Properties and not a big, that real vabt business anymore. With the r. I. P. Conversation and curious from the guests, what was the biggest mistake made in recent years . Tumblr acquisitions or a series of missteps . Jessica . Not selling to microsoft a long time ago. Look. There is cycles in the internet, right . Things that are hot lose their luster and the talent. And its very, very hard to pivot. And i think that is the macro story with a lot of micro execution problems. But those probably could have been overcome if the bigger dynamics were there. Its just been eclipsed. Thank you, guys. Thank you, kelly. Thank you. Talking about the fate of yahoo there. Gunmen opening fire on a Shopping Center in munich today. The impact of the attack when we come right back. You ner want to se 7. 95. Ce [ beep but youll bad to see it here. Fidety ersm stors wi always be. Only e signs were as obv. Filitys active er pron help fd smarter entry and it ps and cahe protect your pottial pfits. Fi ere smarte instors will as be welcome back. Lets get the latest on the shootings in munich with sue herrera. Sue . Well show you footage. Theres the sound of gunshots on the video. You can hear them and let you know about that. Heres what we know. Police say at least now eight people are dead. Cnbc, christina yates, our producer, confirmed that with police and many injured and looking for at least three suspects. Heres the cell phone video taken just as the shootings began outside the Olympic Shopping Center in munich, germany. You can see a man dressed in what appears to be a black vest who may be one of the three suspects. He raises his arm and the starts firing his gun outside of the Mcdonalds Restaurant. We have isolated part of that video where you can see the alleged suspect there with the gun pointed and he opens fire after that. A munich Police Spokesman said witnesses reported seeing three shooters, what they call long guns and trying to verify that. The meaning in germany is different than here. They attacked outside of mcdonalds in a Shopping Mall. The Police Hunting for the suspects. Nobody is in custody yet and after 11 00 p. M. In munich now. All trains, trams, buses and subways in the city shut down. Police urging residents to stay indoors and the u. S. Kons late telling americans in the city do not report to the consulate. Shelter in place because the suspects are still at large. Theres a large Police Presence at the mall locking at the videos shot earlier. Theyre searching for the suspects. The attack is second in germany this week just before 6 00 p. M. Local time in the northern part of munich. President obama commenting on the situation saying, quote, our hearts go out to the victims and we pledge all of our support for germany and everything that they need in dealing with these circumstances. Well have more on the situation as it develops, kelly. But the death toll did just go up to eight and we verified that with Munich Police so more people passing away, obviously. We dont yet have a number on those who have been injured. Police have not been giving that out yet and well let you know if we get that. Thank you. Thats our sue herrera at headquarters. Lets bring in ian bremer now joining us by phone. Twice this week now for germany and more for europe and heard from lufthansa saying the bookings are down and people no moving past as isolated incidents and apparently becoming afraid of the whole region. I dont know how you could see all of this as not connected. You know . We have no question the refugee crisis has intensified d dramatical dramatically. Both the terrorist acts across the continent, also the response. The countries are divided and the populations view on what government should do as a consequence, theres no pay triitri yotism. The bounce after the global recession much lower, much smaller in this europe than the United States and then other shocks like brexit that come specifically as a consequence of politicizing immigration and the refugee issue, putting them together. So they all are theyre all of a mix here. Across europe. And the more terrorist acts we see theres no question the economic implications are going to be severe and structural. Ian, its evan. Let me ask you a question. Not trying to find the Silver Lining here but to look for possible outcomes. Is it possible that further incidents of terrorism actually have the effect of bringing europe closer together as they try to coordinate a policy that makes sense across the borders . By that, i mean, basically recognizing what was some of the united kingdoms concerns of the eus immigration policy . Can it have an opposite effect opposing to dividing it further . Some ways it will and keep in mind what that europe will be and became too big effectively. You know, frank yokayama if he was right, its okay to expand more because countries like russia and turkey and the middle east would look more like europe and that integration would work and what we see, of course, europe got right up into the eurasian borders and they do not share the economic values of core europe, they dont share the political systems of core europe. I mean, you cant look at hungary today, whose leadership emulates putin or turkey which just, you know, had a military coup that failed and now theyve purged over 50,000 officials, teachers, judges, what have you, and say that these are countries that belong in europe. So i think the answer to your question is, you actually will see a stronger integration of a core europe but thats not going to be the eu that we recognized over the past decade that clearly wont include britain which is leaving and will negotiate that over many years but it also probably wont include many of the southeast European Countries including, of course, turkey. It will be germany and a bunch of companies around it and whether its formal because some of europe splits off or informal of a core and periphery and core is only part that works and free transit across borders just isnt effective in other places. I do think over the medium term thats the likely outcome. Ian, it is such a heartbreaking turn of events for many reasons and reflecting on fact of 2012 European Union won the Nobel Peace Prize and now outbreaks of violence and the period between them is shorter and shorter. In terms of geo politics, do you think it raises questions of merkels stance on migrants . Do you think the focus has shifted to the concern about homegrown terrorists given what happened in nice . What is your feeling about that dynamic right now . Well, i should first say, of course, the Nobel Peace Prize is a politicized process. Obama got a peace prize. Kissinger got a peace prize. As tragic as we see in europe right now, the fact that the europeans received nobels should make us feel better about it. Certainly you see the reaction, the antiimmigration reaction, which is splitting these countries apart. Also, splitting apart the transatlantic relationship. I was in cleveland yesterday watching live as donald trump gave a speech that said no globalism, americanism instead. Thats the opposite of what american president s were saying after world war ii when the United States actually constructed the global order. Globalization used to be americanization. It was, you know, all of these making trumps point. The organizations were our organizations. Yeah. Exactly. But they have changed. I mean, theres no denying that. Thats right. I mean, you look at you have to ask the question, if it wasnt for trump saying nato is effectively an outdated and irrelevant organization, i mean, the world has changed. Nato has not. So at some point thats not going to work. Right . I mean, i think we are seeing the same thing for the European Union today. And although the solutions that are being offered are obviously deeply politicized they point to the fact that theres serious things wrong in the institutions governing the countries. Thank you for joining us. I think. Okay. No. Its such a dark and gloomy week and now even gloomier this evening. Presumptive democratic president ial candidate Hillary Clinton could announce her running mate pick today. Were going to hear from supporters on both sides of this race next. And i veget tid aryoly epared to tire . Tired reretint th ade. Aryoly epared to tire . Im in vestsnd as a veednvestor inests i h ad im in vestsnd as a veednvestor inests ervests can instigated vest in. Orot in vest gnp eade. Com and getsihud dolr perfect drivinrecord til one you clipa food truck then yourates gohrhe roof. Acci fginess, fodrivs with berty mutual wot raise yourates due to yr t cint and if youo ve an accint, our clmsrs e available to assisyou twentyfour seven. Call foeeuooday. Libertds wyo. Liberty tual insurance now you can watch nbcs coverage of the rio Olympic Games live at home or on the go. Welcome back. Heres a check on the market, how we finished today on wall street. S p had a record up 9 at 2175. The nasdaq up half a percent, 26 points, closing just about on the button at 5100. Hillary clinton expected to announce the pick for Vice President today. Rumored names are virginia senator tim kaine, new jersey senator cory booker and agriculture secretary tom vilsack. Lets bring in ben la bolt and former advise tore the bush cheney campaign, scott miller. Thank you for joining me. Ben, by all accounts it looks like its senatorkaine. Do you expect an announcement today . Well see with the developing situation in germany if she makes the announcement today or tomorrow at some point this weekend. And reports seem to be zooming in on kaine and a home run. Domestic policy experience, Foreign Policy experience on the Armed Services committee and the Foreign Relations committee. Executive experience. Hes been a mayor and a governor. Hes got congressional relationships. So, if she does choose kaine i think she is looking toward a real governing partner in the white house. Scott, if it is tim kaine, you know, what do you think that does for her as we head into the Democratic National Convention Next week . You know, hes a candidate who reminds me a little bit of trump and pence. Pence would say im not the charismatic guy and brings something to the ticket. What does senator tim kaine bring, do you think . I think tim kaine is a good candidate, not stepping in it for her but, you know, hes okay. But is he okay with assistant Vice President to bill clinton . I mean, i wonder if he is okay with that. I think hes a fine safe choice. Theyre doing the usual democratic special interest fashion show where they trot out cory booker, elizabeth warren, tom perez. But it comes down to tim kaine and what they were going to do in the first place. I think they should have. Let me ask both of you guys a question. Coming into next weeks convention, if you were advising the Clinton Kaine ticket, how would you position that ticket visavis the convention . Are you aiming to the tv audience or are you really aiming to the democratic faithful to get them excited . Ben . I think its a little of both. You have to mobilize the base. Thats a purpose of the convention. But you also have to reach beyond the base and i thought thats what trump didnt do at his convention or with the choice of pence who will shore up the support among social conservatives but they were probably going to vote for him anyway. I think clinton can project a sense of stability after donald trump whos really shown erratic yumt in the campaign and reach out to independents and republicans as part of this convention. I think the choice of somebody like kaine would help her do this. I have a quick question about sort of a message of the convention and impact. Hard to see how next week almost no matter what happens wont be more unifying than this past week. Is that fair to say . I mean, so many issues regarding the rnc. Starting with mrs. Trumps speech and going through the ted cruz upstaging and so on. Would you guys sense that the dnc will be a little more orderly and perhaps more unifying . Scott . Gosh, kelly, they have been working on this for two years for this coronation and anoi anointing of secretary clinton so i would hope it runs smoothly. Whats happened with the republicans is that they have essentially done a more spontaneous and small d Democratic Convention and i was there. I would say the energy level is very high and according to frank luntz in the research of independents it moved independent and i have to say thats unusual. Really, you know, conventions dont move much beyond the pace. And indeed, Vice President s dont move, dont move votes very much in history. Ben, do you also think going to scotts point a second ago that tim kaine would be vp number two here . Well, look. I think the American People would like to have bill clinton back in the white house. Everybody looks at the 90s as so busy. Which we were prosperous and peaceful and i think hell be an asset. I think its ridiculous to assume that he would replace the governing function of the Vice President. I think Vice President biden has set a very good model how to pick off four or five major issues and own them and i expect with tim kaine in the white house he would do something similar. I dont expect tim kaine to be in the white house and i would say, you know, president clinton obviously is very busy. Hes the chancellor of a university and pays 16. 5 million a year, an online university. So i dont even know and i think its time he wont have time to be Vice President. I think you are being a little facetious. Tim kaine is a good choice. A good senator after january, as well. Thank you, guys, both for joining us. Really appreciate it. We await an announcement of Hillary Clinton. Amazon prime members enjoying perks these days. They have free twoday shipping, Media Library and now a lower rate on a student loan. Well explain next. Next week, a sign from the convention is also going to be a big one for tech earnings. Twitter, facebook, apple, amazon. Well preview the results later. You are watching cnbc, first in business worldwide. Welcome back. Some of the perks that come with an amazon prime membership these days but now the e tailing giant is teaming up with a major bank for members another benefit and this is an interesting one. Courtney . This is a very interesting one and may think amazon and wells fargo are unlike partners but they want repeat loyal customers. Looking at the new partnership, amazon prime student members eligible or a 50basis point Interest Rate student loan and only a student member at the loan origination. Neither company is paying the other. Amazon, though, will do all of the marketing. Its another way for amazon to add new prime members for long after they graduate. Consumer Intelligence Research parters estimates 5 million prime student members in the u. S. Adding prime members spend an average 83 more annually than those without the membership so theyre very valuable to amazon. Wells fargo is looking to attract new, young customers needing Student Loans or refinancing existing loans and maybe a checking, savings account and then hang on to them life adding mortgages and Wealth Management services and theres very valuable consumer data on Savings Rates and wells fargo would get. Second largest private student loan vendor and behind sally may and higher rates of all other loan products and wells far ggo of 3. 4 to nearly 11 fixed and variable and discounts attractive incentive for consumers. Im a little worried about that chart. Because . Because its not 500 basis points. I think it was 50 basis points. It is. I think should be like so this is what wells fargo is advertising on the website currently. Speaking of the high student loan rate. 500 basis point difference. Look. Trying to refinance some Student Loans . No, no, no. Just hoping the numbers are right. You want the returns. I hope the numbers are right. Just numbers look well, whatever. Hi. I could be wrong. Speaking to the metrics on the high rate of interest on Student Loans, i wonder, the Market Opportunity seems obvious. Sure. Is amazon wading into something thats a political football . In the president ial Campaign Just talking about it, Student Loans have become a huge talking point for hillary as well as others. Right. Certainly for bernie sanders. And they could be subject to some bad press if the high rates continue and students get frustrated and millennials are outspoken as a bunch. Sure. I wonder if thats a concern. Yeah. I think very much could be a concern. Look, amazon is unafraid to go into anything else and figure if its new prime members maybe at this point, lets try it. Theres no pay of either company and amazon doing the marketing and wells fargo is handling the details and amazon is advertising and reaching out to the students and there is there such an interesting tieup. Yeah. Weve got to come up with some reason to justify would you like a magnifying glass im trying to justify the 350 billion amazon marketing cap and maybe the student loan will get me there. Speaking of amazon, its bezos versus buffett. New details on the battle of the billionaires when we come right back. Veightver there actually no, i wasnt. Olo, you dropped someing. Ace. It youresume wita 20dollarill t. That wei. It youresume wita 20dollarill t. You wantwo for ge too. Haha, what wellere always looking for develors who are f big world changing challenge like makininplanestrai and hospitals run better. Why dont you chyour and te me what time oh, i dont hire ppl ia developer. Im gonna need mday off. Again, not mcall. Hey garyat are you doinoh hey j coazing ading knowledg we can im gonna need mday off. But why dont you just go to thinkorswims ch roooo wwith market professionaland t . Ideas, even tual tras i know. Brain td my brain before you td myace. Mmmm blueberry . Tap only at Td Ameritrade. Her traders on tnkswim. Welcome back. Amazon jeef bezos has edged out Warren Buffett on the worlds wealthiest people by forbes. Would you like to clarify that you were wrong and the chart was right . I thought the chart was a little misleading in what it was trying to say. What do you think about these numbers here, 70 billion . I think amazon is a fantastic company. It has nothing to do with amazon. What it has to do with is the valuation on amazon that underlines jeff bezos wealth has for years continued to defy most economic laws which make share prices a function of profits or cash flow, and amazon has done a fantastic job of constantly push ing the envelope on valuation. It does not generate a lot in profits. They werent even profitable a short time ago. What is interesting about what they have done reminds me of what jane jacobs says about successful cities is their import replacing. Amazon has taken every major cost on its Balance Sheet and turned that into a new business line. A new revenue center. They have taken their i. T. And put it in the cloud. They have taken transportation and started to do it on their own. Its really fascinating that, yes, it may be 20 years but it may be another 20 as they execute on this plan. Its a great example of a company thats managed for the long term and investors for a couple of decades have been willing to give them the benefit of the doubt. At some point in the future it will have to produce cash flows to justify the valuation. I dont know when that will be and it doesnt seem like jeff bezos cares very much but hes very rich and im less wealthy. What is interesting is i think good entrepreneurs have a chance to fail and they do fail. They open up businesses, they close them down. They may go through periods where theyre not making much money or any at all and hopefully come back. This was his first startup, i dont think hes ever failed. There have been business units, new enterprises within amazon that have failed. I mean the phone, i was totally against the phone and it didnt work out that well. I was totally against the kindle and guess who just got one over the weekend. Are you reading the kindle so you can manipulate your social media . I didnt want to spend money on prime but now its a nobrainer. Unfortunately were out of time. I encourage people to read your piece online about that. Earnings parade marches next week. Speaking of social media, gopro, alphabet and amazon reporting. What to watch for when we come right back. Was starring in anewoman show openingslasclosingic night it hit me hats for cats. Everyoned i was crazy. Wh i went li. I got my domai ecatswiha. C fm godaddy. Now thesthings are feelyin outta here. Got a crazidea you think you can tu into succs . Kyou can anweveu think got a domainor you. Go you. Daddy. Gilman go get it, mcus. Go get it. Coachilman used his cash rewards credit card from bank ofmerica to earn 1 casback everywhere, every time. At placelike thbattincas. Owd cheers 2 bk at grocery sre and w holesale clubs. And 3 back onas. Which help h give his ayers something extra. E cash rewardsdit rd from bank america. Cash back for the things you buy most. Theres a lot of places yonever to see 7. 95. [ beep ] youll be glad ee it here. Fili whersmarter investors will always be. Onlthe s were. As obvious wn you trade. Fidelitys ae trader p can ld arter trd exoints ancalp protect your potential pfits. Delity where smarter invest. Welcome back. Theres your earnings calendar for next week. What a busy one its going to be, especially in the tech sphere. Were going to get apple, alp alphab alphabet. It will be really interesting to hear on tuesday from twitter. People are just looking at the viability as social media matures, theres facebook as well, what are the platforms that will keep accruing the benefit from peoples eyeballs and what are the ones that will get left behind. Not to make light of your fantastic piece about how you got off social media and quit twitter, it is interesting because those platforms are all about adoption. I mean its all about subscriber and all about adoption. When there are more people like kelly evans out there, a company like twitter is in trouble. It is adoption, but its also about maturation and not alienating your audience. Not only innovating in terms of technology but making people feel safe with what youre doing. Snapchat is where so much of the focus is but since theyre private we cant talk about the numbers so much. Pokemon go will be interesting. Youre sticking with this pokemon thing, arent you . I havent tried that one. You probably played candy crush 15 minutes. But it is a remarkable story about innovation. They have the ip, they have these characters, but they also innovated and they have been able to come out with this augustmented reality game. The timing was perfect. I love it, i love it, its going to be a fascinating week. You know innovate fads and churn through them. If you were alive, you would have bought a pet rock back in the 70s. You didnt have a pet rock. You werent alive yet. Thank you both so much. Fast money begins now. Welcome to fast money, im simon hobbs. We start with the news out of munich. Lets get to sue herera for the very latest. Simon, thank you very much. Here is what we know. Munich police now say at least nine people are dead and many more are injured. They are looking for at least three suspects, but police are now investigating whether one of the nine people that are dead could be one of the shooters. We have this dramatic cell phone video taken just as the shooting began outside the Olympic Shopping Center in munich, germany. You can see there because weve