Transcripts For CNBC Squawk Alley 20160912

Welcome to squawk alley for a monday morning, im Carl Quintanilla at the new york stock exchange. The dow and the s p still on track for their worst month since january of this year. Lets bring in citis chief u. S. Equity strategist, along with mike santoli, who joins us at post nine. Good morning to you. Good morning. A lot of discussion about what fridays dramatic mean follows, were not seeing it this particular moment. Was that a one off . Yeah, i think so. Look, the market was fairly vulnerable already when we tracked investor sentiment, we saw complacency coming up, our interstock correlation data particularly was sending a warning signal and as a result i think you just needed a catalyst, could have been any catalyst. I think people respond to the particularly the comments, but it could have been the uwan weakening, fears in the u crane, anything can hurt you once you have vulnerability in the market. I was going to say, if i asked you a month ago if rosengren would bring a 400 point down draft, you might have laughed at me. Although the idea of a violent or dramatic increase in Interest Rates, that was a plausible one and i dont think you can now say all of a sudden bond yields are going to be continuing to lift and were going to have to adjust to a new scenario there, but i think it creates an opportunity for a gut check, because the Interest Rate sensitive sectors of the market are now bigger than the financial sector, so i think you have a lot of premise of a lot of the recent rallies and the new highs was lower for longer Interest Rates, economy improving, fed basically sidelined until december, so some of that got complicated in the last couple of weeks. Tobias, are we looking for things to worry about and looking in the wrong places . After the earnings season that we had, it was better than some people expected, but still the growth wasnt gang busters. Are there Different Things that we should be looking at as potential potholes that we should worry about more than Interest Rates . So weve been worrying about things constantly. It was very interesting, last week we were hearing a lot of concern, for example, about the services and manufacturing indexes came out and looked weak and all of a sudden youve got the feds never going to move, too, and i really jump on mikes comments about how people have really rushed into and almost desperate search for yield, rushed into these dividend oriented quote, unquote defensives and at a point they start being defensive and they were, and they still probably are. I see telecom up today, i probably wouldnt be chasing that, id be taking advantage of that and lowering my positions. Decidedly different form with so much of the debt out there turning negative yielding. Are negative rates working, pushing people into the right Asset Classes . I would say not, but look, theres a concern about when rates get too low, you know, what do you do. If youre a consumer, do you have to save more because youre not going to be able to save for retierm with a decent return on your money, do you spend less, or do corporates look at low rates, negative rates, and say theres real problems out there, i dont want to invest in my business, so you can make the argument and it doesnt seem to be having the impact Central Banks want. Tobias, how are you thinking about politics, debates, election day itself, as a variable . A lot of people cant get their hands around whether the markets are reacting to the news flow or whether it is, and to what degree. You know, carl, im going to hide and say im canadian, i dont vote in this election, but more seriously, the notion of who wins does matter more for sectors, we think, than the broad market itself. Right now most people believe that hilkt will win, thats what most of the numbers suggest, most surveys suggest, and as a result if mr. Trump were to all of a sudden win, i think that would be viewed as a negative development simply because it wasnt expected. Not necessarily because its necessarily bad. On the other hand, health cares probably under pressure under either one of them winning and you could think about environmental Sensitive Industries would probably do better under a Trump Presidency than Clinton Presidency and financials do better under either one, as well, as they are both thinking about pro growth policies. Curveball perhaps, but where have we seen the market react to unexpected political news up to this point . Are there specific sectors that have been more effective . For instance, Hillary Clinton and biotechs or others that we should expect to see perhaps get more volatile as we approach november . Sector level has been health care if you look at the positive side, anything that could possibly be a beneficiary of more Infrastructure Spending seems to be a bipartisan case. You look at the gravel stocks, no joke, thats really some of them that have been rolling, but i think in general the market as a whole has broadly been tracking the probability of a Hillary Clinton win. The folks have chronicled this a bit. Its not so much a one for one, day for day thing, but Economic Confidence and clinton win seems to fit better. Thats what you worry about. We saw what happened to brexit. Trumps comments about the feds independence or lack of independence will take on a greater sense of concern around it, especially involved with international investors. Well see if he doubles down on those in the next few days. Tobias, mike, thanks, guys. Lets get to some color on what is moving with the dow now up 53. Bob . Carl, quite a reversal weve seen. Bottom line is simple here, its a mirror image of what happened on friday. Take a look, remember friday, consumer staples, Telecom Utilities were all down, thats not happening, reverse is happening today. Banks flat to up were generally down today and the same situation is playing out if you look at the dow leadership. Tech names like apple and intel are up, oil names like chevron is now on the upside and banks generally remain in negative territory, although only fractionally. Whats it mean . Remember what happened, we have had a 75point move in the s p 500 from friday open to all the way about 6 00 a. M. This morning. That is a huge move in the s p 500. 75 points, my heavens, in a day and a half on not a lot of substantiative news at all. No surprise we should have a modest bounce. If you look at people should be thinking, rate hike is not coming or rate hike is not going to kill the stock market. You can pick which one, i think its too early to talk about trends right now, but those are your two choices. What we are seeing is them picking on lower priced stocks right now. Today is much lower volume than friday, but look at the number of etfs, the ones with the most volume today are the broadest kind you can buy, the russell 1,000, the dow jones u. S. Market, the russell 1,000 value. These are widely held etfs and have by far the largest volume today. Picking the bones of sold off groups here. Back to you. Talk to you in a bit. When we come back, turn it off, turn it in. Thats samsungs recommendations, the impact to the stock and the companys reputation left. Teslas ceo making an announcement about the autopilot feature, calling the update unequivocally safer. And the sixth annual delivering alpha conference tomorrow. Check out the guest list, jack lew, carl i con, and more. Squawk alley returns after a break. You know what, guys . Theres a lot of tree branches and dry brush over here. We should probably move the bonfire over there. [smokey whistling a tune] im guessing smokey liked that idea. Great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcast business. Built for business. Samsung urging users of its galaxy note 7 to turn them off and turn them in as soon as possible because of the risk the battery may catch fire and explode. The recall comes on the heels of an faa saying the devices should not be used on board or packed in luggage. More than 14 billion wiped off market cap since the problem began. Guys, good morning to both of you. Good morning. What do you do with Something Like this, right, where you have an engineering flaw thats already made its way to market . Other than just starting from scratch, starting all over. This is, like, the biggest nightmare anyone can think of in terms of phones that are not just having some problem, but exploding, catching on fire. I cant think of a worse situation, and i think that what the company has to do is be up front about it and be very clear about how it will fix the problem, what happened, and how it will work, because they were hoping this is the best phone thats ever been released. In fact, its going to go down as one of the worst and the letter s on phones used to mean the next edition, especially in the iphone family, and now its going to be very scary for samsung. This doesnt help, certainly, at a time when apple is coming out with the iphone 7, but my question is, how much does it hurt . I know people who are die hard samsung fans, who are more than willing to wait a couple of weeks and get their note 7s back, because they already purchased them and said they like it better than whatever phone they had in reserve. How much does this really hurt samsung, do you think . The way samsung handled it is excellent. They admitted fault, doing a full replacement in correcting the problem, so samsung will get over it. I have no doubt a few weeks from now they will have replaced most of the telephones and the fans will continue buying the phone, because it is a beautiful phone. Its the best phone ever made. Thats why im still optimistic about samsung, despite the damage that took from the phone. Could this have happened to any company, or do you think this is a result of an engineering shortcut that was taken by samsung to get out ahead of the crowd . Well, when apple remember when the iphone 4 came out, we had the antenna gate, you held the phone wrong, it didnt work. These things happen in technology. What samsung are doing is rapidly getting technologies out, where apple is constipated. Youre not seeing new features out of apple other than a better camera, Water Proofing it, they are copying everyone else. Samsung is truly innovating. Wait until the samsung 8 comes out. It will blow our socks off, be ahead of apple, and well forget about it. I love it, samsung, strongly pro samsung partisan on squawk alley, i love it. Im a big fan of yours, but this is not the moment to think that everything is going to work out fine in samsung long term maybe, but the least you expect from your phone is it doesnt blow up and catch fire. Technically, its very different from this. There were many problems from there, but nothing compared to this. Fair enough. This is a serious problem, but theyll get over it. Thats the Way Technology goes. Things go wrong. Teslas car, selfdriving car started crashing. These things happen in the tech world. Speaking of which, elon musk announcing big improvements to the autopilot feature, saying the this. Just really quite unequivocal that autopilot improved safety, yeah, i think this should be and with this update, improves it even more. I would estimate that with learning, with the improved software, that i think well end up probablthree times safer than a car that isnt on autopilot. Thats my guess. Thats my guess. So here we have a situation where there was controversy, not just around the product design, but also disclosure surrounding the product. How will this play out west, sort of tesla country . Well, i drive a tesla. I got here to this stanford studio in autopilot mode, so i trust elon musk, i trust the self driving capabilities, except i know when the limits are. Thats the problem is. If you expect it to do magic, it wont. Its two or three years away from being fully autonomous, but the radar is brilliant. The problem with cameras is they cant perceive depth, you know, adequately and they cant see ahead of whats in front of you. With the radar they can do it, they can look under the car and see much differently. They are doing the right things. Im a big fan, i put my money where my mouth is, i buy the teslas, drive the teslas, im there. Obviously, elon musk is wicked smart and i trust him with your life, im just not sure i trust him with mine. The way he talks about technology and autopilot is so numbers driven. Okay, one in however many people dies, but really thats okay. Im thinking, ive never died in a car crash, not looking forward to it, but i get the feeling elon is okay with it. Exactly, exactly, is that an issue, is that a problem . When you listen to him, he doesnt sound like somebody you want to put in a car with your mom necessarily. This is exactly what ive been thinking about and reached out to a friend of mine who has a tesla in San Francisco. He writes, i love it, driven twice from San Francisco to l. A. , annoyed with the new update that requires you to hold the Steering Wheel every five to ten minutes. For some people, people like vivek and others in the world of the tesla, they understand the risk and how it works. For those that dont drive it every day, certain sli not there. The pittsburgh news about the driverless taxis are all part of this new world. Glad to have you, vive ask, our studios in one piece. You understand the risks and beta testing about a feature that eventually could be life and death, but people talk about traditional automobiles have a higher rate of accidents and fatalities, but they also say the only way you can guarantee these vehicles are as safe as they can be is if every car on the road is an autonomous vehicle, because there will always be the room for human error. How often when you drive on autopilot does the other driver make a mistake that you need to react to . Thats a problem, but i trust autopilot more, i dont have eyes in the back of my heads, my car can. I put it into autopilot when im on the highway because im worried about someone cutting me off. The car can see them. It is actually safer than human beings driving. So i look forward to everyone being in autopilot mode and every car being self driving, but in the meantime, im perfectly happy to let my car take over when im on the highway. Turning into the hour about technological flaws between tesla and samsung. Guys, good to see you both. Thanks so much. When we come back on squawk alley, highlights from our exclusive interview with barclays chief jess staley. First, donald trump joining squawk box earlier today with some very strong criticism of janet yellen and the Federal Reserve. Shes keeping them artificially low to get obama retired. Watch whats going to happen after just a serious problem and i think its very political. I think shes very political and to a certain extent i think she should be ashamed of herself. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. Mapping the oceans. Where we explore. Protecting biodiversity. Everywhere we work. Defeating malaria. Improving energy efficiency. Developing more clean burning natural gas. My job . My job at exxonmobil . Turning algae into biofuels. Reducing Energy Poverty in the developing world. Making cars go further with less. Fueling the global economy. And you thought we just made the gas. Energy lives here. Welcome back to squawk on the street. Shares of apple up as much as 1. 8 on the day. The iphone maker having the most positive impact on the nasdaq 100, this as investors digest negative news surrounding samsung. If apple can hold on to these gains, it will be the best day since july 27th when it gained 6. 5 fkt. Kayla, back to you. Thanks so much. Earlier this morning barclays Ceo Jes Staley joined me in an exclusive interview here on squawk on the street, and as we think about the fact banks have been among some of the hardest hit companies in the fate of low Interest Rates, barclays is the most in the cross hairs. Its in the uk, which has seen the economy detract from the brexit vote. It is still increasingly globalized. They are undergoing an overhaul, which he said is not necessarily thrown off track by brexit itself. He called brexit a reality and says they will be realigning their business because of it, but for now the economic doom and gloom hasnt actually come to pass, although theres still many Market Forces outside of his control, namely the Central Banks. Take a listen. Credit markets are wide open. The british Banking System went into the brexit vote very liquid, very strong. I think the bank of england under Governor Carney has acted swiftly and correctly, in our judgment. You service so many Multinational Companies and right now a third of euro zone corporate debt is trading with negative yields. That cant help. Negative Interest Rates are not helpful, and i think one of the questions we all need to ask ourselves is, has the Monetary Policy going towards zero and negative Interest Rates, has that run its course, is it having the benefit one would expect by dropping Interest Rates, and i think its a fair question bankers need to be asking themselves. Whats that mean for the fed next week and what did he think of Donald Trumps comment that the stock market will plummet when rates rise . Heres what he said. Uncertainty of the current Monetary Policy that we have in terms of how novel it is, this is a massive experiment on a global scale. And so there will be uncertainty as the policy gets shifted and as you have this sort of separation from the u. S. And what youre seeing in other major Central Banks, so that i do believe. What i dont necessarily believe is youll see rising Interest Rates with a declining economy. I think the fed has shown the right level of caution. They are data dependent. I think what they see in the labor markets and what they see in the underlining economy, thats whats driving this move up in Interest Rate, so in the stock market should respond to underlying economic activities, so if there is a correlation between where Interest Rates go, economic growth, the labor market, that should translate also into a pretty Good Environment for corporations, so im not quite sure id make that connection, that rising Interest Rates will hurt the equity markets. I think actually it could be just the opposite. Of course, thats what we call the best of both worlds. You have an economy that is skbrooufing, a stock market that itself can continue increasing, especially for these companies that have been hit so hard, all the while you can return to normalized Interest Rate policy. Sounds pretty good when it comes it tends not to last forever, thats for sure. Indeed. Still to come, the head of Facebook Messenger, david marcus, is going to join us next with a look at whats ahead for one of the social networks most important businesses. Later, big name actors and models take over for the annual 9 11 charity event. Well speak with actor and director steve boou shem me. More squawk alley is next. 98,352 whats that . The number of units well make next month to maximize earnings. Thats a projection. No, its a fact. Based on hundreds of proprietary and open data sets folded into a realtime, actionable analytics model. Nine. Eight. Three. Five. Two. Youre not gonna round that up . You dont round up facts. Powerful analytics driving decisions for the worlds most valuable brands. Hewlett packard enterprise. But the best place to start is in the forest. Kubo i spy something beginning with. S beetle snow. Kubo no. Beetle snow covered trees. Monkey nothing to do with snow. Narrator head outside to discover incredible animals and beautiful plants that come together to create an unforgettable adventure. Kubo wow narrator so grab your loved ones monkey dont even. Narrator and explore a world of possibilities. Kubo come on, this way. Narrator visit discovertheforest. Org to find the closest forest or park to you. Its scary when the lights go out. People get anxious and my office gets flooded with calls. So many things can go wrong. Its my worst nightmare. Every second that power is out, my citys at risk. Siemens digital grid manages and reroutes power, so service can be restored within seconds. Priority number one is keeping those lights on. It takes ingenuity to defeat the monsters that live in the dark. Hi, everyone, im sue herrera, heres your cnbc update at this hour. Suspected kurdish militants ignited a car bomb in southeastern turkey woubding at least 27 people. That area has suffered repeated bombings since an abandoned ceasefire in 2015. Target says will hire more than 70,000 Seasonal Store workers during the Holiday Shopping season, about the same as last year. It will also hire about 7,500 workers for its distribution facilities. Chinese and russian navy is launching eight days of war games in the south china sea, a sign of growing cooperation between the two countries against the backdrop of regional territory disputes. Russia has been the only country to speak out in chinas behalf in its demand the u. S. And others stay out of the regional disputes. Russian president putin and Prime Minister medvedev went fishing, solving problems by enacting antipoaching measures and pledged to support the fishing industry. Thats the cnbc news update this hour. Back downtown to squawk alley. Carl . Thanks so much. Europe and the uk closing right about now. Lets get over to seema at hq. Seema . Stocks moving lower here, despite the rebound we have seen on wall street, and once again its the macro versus the micro that seems to be unnerving investors for quite some time. There seems to be a belief theyll offset the economic and political risks by unveiling aggressive monetary policies, but the meeting showing draghi wants the Current Issues to play out. Todays trade about 4 down so far in september. Mining companies all down sharply following the renewed drop in oil prices and in germany shares of lind are dropping nearly 8 after merger talks ended. Its one of the worst performing stocks in germany. Add to that the german tenyear yield continues to rise further into territories, highest level since the brexit. Youll see portuguese bond yields jumping to a twomonth high. Italian and spanish yields rising to multiweek highs. Theres a combination of factors pulling money out of bonds. The main trigger seems to be the confusion of policy dynamics after disappointing investors last week. There are concerns about japans next move about a series of contradicting speeches from japanese policy makers further complicating measures ahead of their Central Bank Meeting next week. Well also keep an eye on the uk, a lot of data, first inflation on tuesday, thats tomorrow, on employment on wednesday, and on thursday well get uk retail sales and bank of england meeting, so a lot of different events and data points coming out of the uk. Speaking of the uk, a bit of political news, as well. Former Prime Minister David Cameron standing down as a member of parliament after initially saying he would stay on until the next general election, bit of surprise for those political strategists that follow the uk very closely, but keep in mind, not market moving at this point. Back to you. All right, thank you, seema. And a solid year for facebook shares trading near all time highs and up nearly 20 in 2016, so whats the company doing to keep revenue growing through the rest of the year . Julia has more in San Francisco with a special guest. Julia . Hey, john, thanks so much. Im joined right now by david marcus, ceo of Facebook Messenger. Facebook messenger, which now has over a billion users, i know youre working with all sorts of different companies, but will you generate any significant revenue for facebook this year . No. So, tell us why not. Whats it going to take for Facebook Messenger to turn those 1 billion monthly active users into Revenue Source and what are you working on . First things first, we need to create the vibrant ecosystem of experiences you can have inside of messenger and thats what weve been focused on since we opened the platform in april. What were doing is basically enabling brands to create campaigns that starts on newsfeed and end in messenger and we see, for instance, match. Com in europe doing, you know, 2x the Conversion Rate in providing a dating app, dating experience thing in messenger versus redirecting users to a mobile website. There are other experiences out there that get better conversion because they can go direct one on one with their customers inside of messenger, so more of that. Then when we create a vibrant ecosystem, well think of a good way to monetize that scale. In addition to the Cross Platform between news feed and messenger, youre focused on bots, but theres a lot of question whether consumers really want to interact with companies on the messenger platform. What can you tell us about whether or not bots are really working. The problem is people think about bots as this command line interface thing thats really not friendly and inferior to user interface and thats probably true, but thats not the way we see it. What we think about is theres a conversation and inside of that conversation you have a cononcall contextual place where you have interactions you need to have with a brand or service and it can take multiple forms, it can be buttons, u. I. , and conversational when it needs to be. Weve seen experiences, for instance, hip monk has created a travel experience, which is about to get much better right now and they are seeing the same Conversion Rate that they were seeing in their app to sell Airline Reservations or travel recommendations. Can you announce new numbers for us . We have about 33,000 bots on the platform, but the number of bots isnt what matters. What matters is the good experiences people can have and how engaged they are with the few experiences they care about. John, you want to jump in here . David, good to see you, thanks for coming on. I want to ask you about engagement in messenger. Youve added so many features that is different from whats on main facebook. What proportion of active messenger users are not necessarily active on facebook . Maybe theyve got accounts but they are not on them that much, maybe they signed up through their phone number and not through their facebook account itself . Well, that number is already in the millions, but we dont have a specific number that we communicate. You know, the one thing id say is were going to continue investing in the ability for people to not only create an account on messenger without a facebook account, but also find the people they want to communicate in an easier way and build more features for them in the years to come. This is one of the main areas of growth for us and, you know, the next couple of years and were going to continue investing in it. David, this is kayla back at the stock exchange. Earlier this summer you announced a limited rollout of end to end encryption. How do you plan on balancing the privacy that is so important to users with the security that governments around the world are demanding . So, we are actually rolling out end to end encryption in a more open way, so gradually ramping it up. Weve seen that our users actually really enjoy that feature, especially because it combines not only encryption, but femoralty, so you can set a timer for your messages and they expire, so if you need to send your Social Security number, whether its to a Family Member or someone else, you can actually do it and know that not only will you send it in a way thats even more secure than the traditional way, but the messages will go away and if somebody gets ahold of your phone, its actually gone. We feel that empowering people to have this kind of security on a messaging platform is really important and thats why weve done it and were rolling it out now. David, if i could, i know we have to david, unfortunately, were out of time. Well ask you more questions and definitely be watching closely as you take the stage in just a few moments. Thanks so much, david marcus, ceo of messenger, back to you. Thanks so much, enjoy the rest of the day there. Still to come on squawk alley, why sam altman has a new nonprofit gig. Hell join us with that up next. First, Rick Santelli, whats on your mind today . Well, as i watch rates hover at what are for the most part the highest yields on a closing basis since june for most maturities, i wonder what the fed thinks as they look at these rates, maybe more importantly, what does the fed think about how the market has become a sin no anyone for the state of the economy. All that after the break. Upgrade your phone system and learn how you could save at vonage. Com business on the Halftime Report today, the biggest bull on wall street says the s p 500 will be at least 10 higher in just three months. Hell explain why hes so sure this is a great buying potential. Plus, a key fed governor speaks shortly. One of the last hints well get on whether well see a rate hike next week. And the bond market flashing warning signs according to a top executive. His view of whats to come is today at noon only on the Halftime Report. Carl, were going to see you in about 20. Sounds good, scott, thanks so much. Lets get to the simi group in the meantime, get the santelli exchange. Hey, rick. Good morning, carl. The fed really has a dilemma these days, and the dilemma is they just cant act like previous fed chairmans and fed committees have acted. Mr. Volcker when he was chairman didnt seem to really so much concern himself with all the various outcomes of trying to slay high inflation. He did what he thought was best for the economy at large in a more macro sense and the Collateral Damage was something that had to be tolerated. Its not like that anymore. You know, everybody now, they are so touchy trying to put the word politics and Federal Reserve in the same sentence. One of the candidates was on this morning and that was an issue, but i dont know how anybody could be so naive as to think that really since the credit crisis and all of these experimental policies, there has been a huge move by central bankers to replace normal fundamentals to measure the economy with this trickle down wealth mentality where the stock market now represents the economy. Thats fraught with politics. I remember a time where just hinting the spring court was political, was heresy, yet Ruth Bader Ginsburg and whether she moves to new zealand or not really put that to rest, did it not . I dont understand how the Federal Reserve with so much riding on controlling think brexit. Is brexit not proof theres and im not saying its good or bad. There is a political issue there. We need to acknowledge that. Brexit, they picked not only the side they thought was worse for the economy, they adjusted policy in that regard and the assumptions prove to be false, whether they thought it would happen or the damage that would occur if it did happen. Look at other issues that are so data dependent, data dependent was the watch phrase of the Federal Reserve for years, and i said for years it was a red herring and it has proven to be a red herring. Inflation and jobs all think about the jobs, okay, how can jones be 5. 8 million when we look at all the other data. There is only one answer, but the answer is not a palatable answer. Somehow these parttime jobs are counting for more than they should. The whole point of this is, is that when the fed tightens, talks about tightening, hints about tightening, the market gets volatile and not in a pretty way. The timing of an election, just like the timing of brexit, it is what it is. Even the december tightening last year was probably the smartest thing for the fed to do to give them the longest time line to assess if an Election Year would be appropriate to carry on part of the experiment of normalization that it did indeed begin in december of this year. I dont know the answer, but just the discussion of it should be something were not afraid of. Carl, back to you. All right, thank you very much, good stuff. Our Rick Santelli in chicago. Meanwhile, sam altman is best known as the president of y kbi night tor, but now has a new job. He joins us from San Francisco with our own josh lipton. Hey, josh. Hey, carl. Sam, thank you for joining us. Thanks for having me on. This new nonprofit is called vote plz. The mission is to make it easier for young people to vote. How are you going to do that, sam . The world of technology has moved a lot but the world of voting has not. Young people are less likely to have jobs, drivers licenses, printers, stamps, this is the way you traditionally register to vote, when you get your drivers license or mail something, the young people do everything on their smartphone. We notice the system is getting more broken for young people every year and young people have to live with the results of the elections the longest, so we thought it was really important to use everything we knew about technology and Building Consumer products to make it easy for young people to participate in democracy. As the young tech workers, sam, get closer to heading to the polls, what do you see as sort of the issues that you think are going to be really important to them, is it trade, immigration, how do you see it . Well, i think young people sort of live on the edge of the future, so one interesting point we see is that young people, i think, are most aware of this major technological shift thats coming, where we have massive new wealth creation, wealth inequality, and technological unemployment at some point. I think people are really starting to think about how that all plays together and you see interest and things like a basic income mostly from young people. Sam, you had a post a few weeks ago saying donald trump is right about some big things and then taking issue with the solutions that he poses to some of the big issues that he raises. Im wondering what kind of reception you got to that take in Silicon Valley and how you think that bodes, perhaps, for Donald Trumps chance of winning Silicon Valley over if he continues to address the issues hes raised or perhaps does it in a different way. Look, this is a very hard election for me to predict. Ive never seen anything like this. The common thing i think you hear a lot of people say in Silicon Valley is these are the two candidates with the most the highest unfavorable ratings weve ever seen. So in terms of how it plays out, difficult for me to predict. I do think people are really focused on a Better Future no matter what happens in this election, and i would say the conversation in Silicon Valley is, we have these major, major changes to Society Coming from technology, and, you know, who cares, 2016, 2020, but over the next, you know, several decades, how are we going to get through these major changes. Sam, i want to ask you, switching gears here, another subject, obviously, we talk about here, tech ipos. Yeah. Still few and few between, sam. How important is that ipo pipeline to the health of the overall Startup Ecosystem . Remember at least the stated purpts of an ipo is to raise capital. I think whats going on right now is it is so easy to raise capital in so many different ways that a lot of people are saying my best option for raising capital is not an ipo. Were seeing some, but the private markets for financing have been pretty attractive. And we talk, sam, about big trends a lot, when we talk, though, you think a. I. Is the next transformative technology, your point is, why is that, sam, and is there a startup working in that space that youre the most excited about . I think theres a lot of transformative technologies, im excited about a lot of those. I think were seeing transformation work in biotech right now, but a. I. Is interesting, because its one of these technologies that will touch everything, so if we can get true general intelligence built, i at least dont think i can understand all the implications of that, other than to say it will be massive. One company, its a nonprofit i work on is called open a. I. , which is doing research to develop general intelligence, but there are Many Companies that are applying existing technology to verticals like medical diagnostics, self driving cars and literally hundreds of others. I think the thing that will amaze us when we look back at this period is how quickly the technology and deep learning thats matured in the last couple of years seeped into everything and how much that transformed industries. All right, sam, thank you for your time this morning, appreciate it. Guys, back to you in new york. All right. Thank you, josh. And when we come back, actor and director Steve Buscemi joins us live from the trading floor. First, weiss her speaking exclusively earlier to us. Hp announcing its buying samsungs billion dollar printing service. Take a listen. We believe the deal will be completed in the first full year of operation, we do see significant synergies in the business. We are acquiring the business globally, and the very vast extensive Distribution Channels that we have on here today with more than with more than 1,400 partners in that Global Partner conference. We have real confidence in it. o hard to be a musician, but i cant imagine doing anything else. Now that the train makes it easier to get here, the neighborhood is really changing. Im always hopping on the train, running all over portland. I have to go wherever the work is. Trains with innovative Siemens Technology help keep cities moving, so neighborhoods and businesses can prosper. I can book 3 or 4 gigs on a good weekend. Im booked solid for weeks. It takes ingenuity to make it in the big city. Hey hows it going, hotcakes . Hotcakes. This place has hotcakes. So why arent they selling like hotcakes . With comcast Business Internet and wifi pro, they could be. Just add a customized message to your wifi pro splash page and youll reach your customers where their eyes are already on their devices. Order up. Its more than just wifi, it can help grow your business. You dont see that every day. Introducing wifi pro, wifi that helps grow your business. Comcast business. Built for business. Athletes, actors, and mogdes are taking over canter fitzgeralds floor. Thats where we find our dom chu who is live with a special guest. Okay, so, kayla, were here right now with Steve Bushemi who is on the foep with his mother trying to tell them all to tune in right now. Put on cnbc right now. Right now. You see . Oh, hi. Do you see me . Okay. All right. Ill talk to you later. All right. Love you. Okay. Bye. Steve, thank you so much for, first of all, getting your mother to tune in. Yes, of course. And, of course, for being here. This is a huge day for Cantor Fitzgerald because all of the proceeds and commissions go to charitable causes. Tell us about why youre here and the charity that youre here to support. Im here for a Wonderful Charity called friends of firefighters that was started by Nancy Carbone after 9 11, and what friends of firefighters provides are therapeutical services, counselling to firefighters, active firefighters, firefighters retired, and also for their families, and the need today is just as great as it was 15 years ago and before. I mean, what 9 11 brought out in the firefighting community is that there was a need for counselling. Of course, after 9 11, but firefighters throughout the years have suffered post Traumatic Stress from previous fires, but never went for counselling because it wasnt in their nature to ask for help. Theyre so used to helping other people. I think what nancy and friends of firefighters does is very important, and 15 years later we still have people dying of cancer from being down at the site. Theres been over 100 people that are still getting sick. Its very important. Now, you yourself have experience in the field. Tell us a little about about how that has played into why you support this. I was a firefighter in the early 1980s in engine 55 and left to do some a little bit of acting and that kind of worked out, which was very nice. Then when 9 11 happened, of course, i had some good friends that were lost on that day, and the next day i went to my company and was able to work with them down at the site for a few days, and what it did for me was reconnected me with engine 55 and the firefighting community in general and so im grateful to have that connection back, and im grateful that Cantor Fitzgerald does this every year, and they raise millions and millions of dollars for a lot of charities. We got a couple of seconds left. Yes. Please make the appeal. Tell people why they should call in today and why they should help raise money for all these charities. Well, its good to help, you know . I mean, thats thats part of what life is to help other people who are in need, and so if you give today, it goes a long way. Remember, friends of firefighters, theyre doing their benefit gala on october toth, and they could use a lot of support. Thank you. All right. Steve buscemi, thank you. Absolutely. Well toss it back to you. These guys here at cantor through not even today have raised 125 million for charity. We hope to raise a lot more, guys. Every year cantor continues to do extraordinary work. Thanks so much, guys. Close to session highs here. Up 73 points. Were back after a short break. Guyhey nicole, happening here . This is my new alert system for whenever anything happens in the market. Kids a natural. But thinkorswim already lets you create custom alerts for all the things that are important to you. Shhh. Alerts on anything at all . Not only that, you can act on that opportunity with just one tap right from the alert. Wow, i guess we dont need the kid anymore. Custom alerts on thinkorswim. Only at td ameritrade. Youre at the top of your game. At work or at play, youre unstoppable. Nothing can throw you off track. Oh hey, shes cute. Nice going man. Things are going great for you. Youve earned a night out. Good drinks, good friends. Yeah, we can go ahead and call this a good night. Wait, is that your car . Uh oh. Not smart. Yeah, i saw that coming. Say goodbye to her. Ouch that will hurt your bank account. Youre looking at around ten grand in fines, legal fees, and increased insurance rates. I hope you like eating frozen dinners. Alone. Lets try this again. Smart move. Because buzzed driving is drunk driving. V biotech bracing for its best day since 2006. Help to buy m a news. Raptor is up after it is learned it will be acquired by large caps also gaining ground to try to say up more than 2. 5 on the day. Keep an eye on biotech here, carl. All right. Thank you so much, sima. A couple of pieces today arguing that big pharma continues to elevate that sector on the prospect of future deals. Apple, the best dow component, on an interesting day for that company. Walmart big upgrade over at cowan as well. We didnt even talk about apple scaling back its selfdriving car. Well see what happens this afternoon. Lets go over to headquarters. Judge whopner, and the half. Im scott wapner. Todays moderate ers comeback for the markets, but with stocks facing a most pivotal period in months. Is it time for caution or opportunity . As next weeks fed meeting looms large. With us for the hour today, joe terra nova, josh brown, steve weiss, Jim Leventhal as well. Also with us today on set cnbc senior economics reporter steve liesman. The dow up 63