Million subs, compared to that guidance of 2 million. The company beat up earnings in revenue. Reed hastings last night talking about competition on the call. We had a great couple of years at these price points and theres a lot of competition entering the market. Were focused on increasing value by having more spectacular shows so that people watch more of netflix. Lot of analysts are struggling how to value these guys. Is it a cash flow story . Is it a mushy hit maker story . Whats your take on this . How do we know what where its going to go. People were short the stock yesterday. Obviously were seeing major shortcomings. Carl, i think youve actually frame this had correctly. This is an unbelievably difficult company to analyze quarter to quarter. I have a rule of thumb, never bet against netflix or Reed Hastings. That said its extremely difficult to forecast whats going on here. Essentially the u. S. Has reached some kind of maturity and the rate of growth there is modest at best. And the cost of the programming designed to keep the customers in is rising. So, those two things you sit there and go, wow, that will be hard for the stock. Good news, though, is that they have very low penetration overseas. In this quarter they show Enormous Growth in new subscribers overseas. Thats the really, really, really good news. As i said, these guys have shown themselves to be smarter than people expected, literally from the beginning. There hasnt been a fluke about anything theyve done. It was a tiny Little Company going into a world dominated by cable companies. Its blown them all away. Whats really impressive is that at least to me remember how we used to talk about this idea that the smart phone market had gone from an adoption phase to adaptation, where the rest of the economy is adjusting, there are very few companies that have adapted to the universal ownership of smart phones better than netflix. Overseas, that is a gigantic advantage to them, the fact that people can use tablets, phones, can use apple tv in any device thats out there to watch programming. And i expect them to be successful. I dont see how you get the bumps out of the road, though. From quarter to quarter, i think this will remain tough which makes it a hard stock for me. They have been investing for that Tipping Point overseas. Hastings says material global profits are what he expects as soon as next year. Is that enough to hang your hat on internationally . Im saying for me as an analyst, i like stories where i can when i make a bet thats out of favor, i get a pretty good long ride out of it. Historically, netflix has been able to deliver that. Ive never been able to get the pivots, those inflections right. I think hes correct. The international markets, they will be more successful there than the skeptics think. To me, the real question is that their costs come in, in advance to the revenues. Theyre making better and better stock will remain volatile f youre a trader and like to play things that way, this will remain an attractive stock. For me its just too volatile. The real question is, though, by the end of 2017, netflix should be approaching 100 million dploebl subscribers. Yes. Who are paying every month. Varying amounts but paying for the service. Once you have that loyal base of users and subscribers in this mobile economy, what more can you do . Amazon isnt amazon just because theyre good at selling books. Amazon is amazon because jeff baytos had this vision that once you can make this based on data you can do so much more. Whats that next leap for netflix, from mailing out movies to streaming, what more can they do on that Subscriber Base of around 100 million . Carl, let me ask you a question. Did you see smart phones as a viewing platform coming two or three years ago . I sure didnt. And, you know, at that time, the band width constraints in the cellular world were such that having high quality hd viewing experiences was a dream not a reality. Now its a reality. Did you . Did you see it . No, i didnt. Honestly im impressed how well they made that transition. I would not exclude the possibility that one size fits all. Ill give Reed Hastings having understood this market and his team better than anyone else who is out there. All the disadvantages that theyve had, theyve overwhelmed by just being smarter than other people. I do think they have a chance to be smarter about pricing going forward. So i think getting to 100 million really matters. And i dont know that thats necessarily the end. If they make programs that are attractive enough, theyre going to get paid for it, the same way that hbo has. Right. One last thing on this, before we move on, in a word, do you believe that subscriber data and Machine Learning can make them better programmers . In other words, better creators of hits than your traditional Legacy Network . Definitely. Theyve already shown that, indisputably. All right. Well see where that takes them in the future. Next up, roger, samsung setting up Exchange Booths at airports around the world, hoping to stop people from bringing the phones on flights. Letting owners swap note 7 for a new phone with employees on hand to transfer all your data. Theyre available before security screenings in australia, korea and in some places like San Francisco. If i had told you this was coming a couple of months ago, it would have been hard to believe. Right. Carl, the airport is the absolute point of the marketing breakdown for samsung right now. Its the point where everybody is reminded that has a Samsung Phone that youre going to be singled out to have to, i dont know, put this thing in a fireproof bag, wrap it in asbestos, whatever you do. Everybody who doesnt have a Samsung Phone is reminded i dont know what model that is but its not samsung and i dont want it. Hopefully theyll be success skesful swapping out these phones and people that have them will see this as a positive interaction because it could help turn this around for them. Is there any way they view this as a positive interaction . No yeaway. If the service is really good, dont you think its possible that people who are samsung fans and loyal say thats nice they swapped out my phone here. I wanted to use it on the flight . Its better than getting on the plane and getting shamed or stopped at the gate, even worse, and being without your phone when you land on the other side. Getting on the plane and having your phone blow up, its better than that. I dont think its better than anything else. Sadly, samsung is creating a new Business School case, replacing the pinto as possibly the worst handled consumer interaction on a product failure. I dont think weve seen the end of this. Im with carl on this. This is an unmitigated disaster. Putting this thing in airports is just going to say if samsung, then problem. I suspect this is the first part of this story that might have a Ripple Effect into their other product categories and, you know, i just i feel really bad for them because they have made a lot of very, very good products but people cut corners on this one. Theyre being you know, the people who bought the products are being punished horribly and the company will be, i suspect, carrying the legacy of this for a long time. And i really dont see a good, happy ending to this at all. I mean, look, its a big company. This is not going to kill them. I was going to say. Theyre very smart people. Theyre going to figure this out. This is going to hurt their smart phone business which, lets face it, they were the worlds number one and they were making a lot of great products in a row and they had a lot of happy customers. This is a horrible reminder that people who were sloppy, you know, can cause a lot of trouble with technology and thats what happened here. But this recall, roger, has been going on for weeks at this point. How long do you think it will actually take them to collect all of the galaxy note 7s that are out there. If people have been paying attention to any type of news, they would have known that this was happening and yet still theyre having to put these kio kiosks up at airports. As weve seen in some other areas of our life, politics and other places, that some messages take a long time to get through. And, you know, in this particular case, you know, this became you know, you go on the internet, the number of meme images, making fun of samsung and exploding phones is so large that i fear that even when the recall is done and all the phones are gone that the memory of it will last a very long time. Would have been easier had it been a mediocre phone. People love this had phone. The best reviewed phone. They dont want to let it go. I didnt personally try it but the reviews were off the chart. They were. People dont want to let it go until they have to. If you like this, youre going to love the note 8. Exactly. Now with fireworks. Roger, thanks so much. Good to see you again. Some Economic Data moving the markets this morning. Steve liesman is back at headquarters with a rapid update on that, steve. Kayla, we have a debate on wall street about the just completed quarter strength of growth and rebound in the Third Quarter. I want to see the cnbc rapid update. We are the only ones who put together the tracking forecasts. Unchanged after the Inflation Numbers this morning. Look at that range there, folks, 1. 9 to 3. 1 . Pretty big range, pretty big debate about the strength of the just completed quarter on wall street even though the quarter is complete. 2. 4 is the forecast for the Fourth Quarter and the actual Second Quarter which was 1. 4 . Moving down morgan stanley, 2. 8. Happy to welcome bank of america to the forecast. 2. 7 and much followed atlanta fed at 1. 9 . One more chart. We tracked the atlanta fed over the quarter versus cnbc rapid update. Atlanta fed started much higher and disappointments on the consumer stepped it down. Cnbc rapid update because it has more people in it tends to be more stable and didnt start as high. You have this debate our number, 2. 6 , atlanta fed much followed gdp number at 1. 9 and still, carl, a bit of data to go. Clearly it looks like the best we can do is a mediocre balance, bounce back looks like its fading in the rear view mirror there. Steve, thank you for ta. Sure. Steve liesman. Lionsgate says it will produce a new live show based on the game candy crush. Joining us live, plus a strong gain for goldman and new ceo at visa. What you need to know about both companies. Well talk about big blue when squawk alley continues in a moment. There are many things you dont want in industrial strength like cologne. Morning but theres one thing you do. gags its called predix from ge. The cloudbased Development Platform thats industrialstrength strength upgrade your phone system and learn how you could save at vonage. Com business did you know your business doesnt have to suffer from slow internet . Comcast business now offers blazing fast internet speeds up to 250 mbps. Over 6 times faster than dsl. Get internet for as low as 59. 95 a month. Call today. Comcast business. Built for business. Did you know sharing wifi with your customers could leave your business exposed . Only comcast business offers wifi pro. Two separate networks one thats private for you, and one thats public for your customers. Upgrade to wifi pro for only 19. 95 a month. Call today. Comcast business. Built for business. Financials are in focus this morning. Goldman sachs and visa. Those two Companies Moving in opposite directions. Visa, of course, you may know by now, Charlie Scharf announcing he will be stepping down december 1st, saying he can no longer spend enough time in San Francisco to, quote, do the job effectively. His family is based in westchester in new york. He will not be receiving a severence package. He does not have a noncompete agreement. He told investors he will stay on to assist with the transition to visa board member and former member at american express, alfred kelly. The company said no change to the business outlook. It will discuss that in more detail when it announces earnings on monday. Shares have been surging throughout the morning after Third Quarter earnings on the top and bottom lines. Thanks to strong gains in trade ing revenue. Bank of america during this earning season. Profit surged 58 last year saying, quote, we saw solid performance across the franchise that helped counter typical seasonal weakness adding that the bank continues to manage its Balance Sheet conservatively and is benefiting from the breadth of our offerings to clients. Another thing mentioned, brexit could drive market share to the u. S. Banks, which are in a relatively strong position and marcus, their online lending platform will provide more information when they have it. They just underwrote their first loan last night. Some wondered whether or not the results were so strong that the argument for going for a more consumer oriented Product Offering is less important now, right . Because trading was so robust. It is so cyclical and so choppy. You never know what events are going to drive clients to you being able to see goldman benefit from its own Balance Sheet, not having to sell loans to thirdparty investors which is something that lending club and others are struggling with now. All right. Up next, a day in the red for big blue. Not a great day for ibm. Shares falling despite tax assisted earnings. More on that when squawk alley comes right back. Can a toothpaste do everything well . This clean was like pow it added this other level of clean to it. 6x cleaning my teeth are glowing. They are so white. 6x whitening a i actually really like the 2 steps. Step 1, cleans. Step 2, whitens. Every time i used this together, it felt like leaving the dentist office. Crest hd. 6x cleaning , 6x whiteninga i would switch to crest hd over what i was using before. Crest. Healthy, beautiful smiles for life. Shares of ibm, Third Quarter results for the top and bottom lines. On the positive side, software did well, up 3 . Thats the core revenue and the classic ibm model. Newer offerings like Cloud Computing and also Artificial Intelligence saw growth. Now the bad news is that the past three months mark the 18th straight quarter of falling revenue. Company cfo was on closing bell yesterday, talking about the future and growth and watson. Take a listen. Watson is, for us, the future of cognitive. Its not just watson platform. Its showing up with how we deal with our health business, in. R its how we see the future of cognitive within ibm. If ibm had a dollar for every time they talk about watson making money they would have more money on the Balance Sheet than they do now. Looking ahead to intel, chip maker report iing earnings, getting an up grade at barclays. Intel indicated this looks better than expected. Thats a contrast from last year when people had a lot of pcs in the channel and had to get those out before the oems could sell. I think the question is, when the intel talks about the Holiday Season and beyond, is the emphasis on low inventory or higher demand . Higher demand would be better news than just saying, hey, there arent a lot of pcs on the channel. Well have a better q4. Wouldnt necessarily be pointing in that direction but they also havent for a long time. Thats right. Overall, those numbers are not looking strong for the pc market as a whole. In the u. S. , though actually, the pc market looking healthier. Corporate pc market benefiting players like hp. U. S. Laptops doing pretty well. Thats why intel is interested in getting the likes of Michael Phelps to try to entice people to buy pcs. We had a new commercial featuring that olympian, of course. It would be nice to layer demand on top of that. Certainly. Well get that today. Donald trumps recent comments about a rigged election is sparking debate about whether the countrys Voting Machines are safe from tampering. Aditi roy is live in San Francisco and has been taking a look at that. Aditi, what did you find . Hi there, kayla. Good news is that one expert we talked to says the possibility of digital tampering is remote since most machines arent connected to the internet. Research shows the Technology Behind most of these machines is grocery outdated. 43 states have machines that are at least a decade old according to a nonpartisan policy group. 33 states have accepted help for cyber scan and most machines are running on Outdated Software like windows 2000, according to gregory miller, cofounder of the ocet institute which works with Election Officials to update infrastructure. The largest problem here is the pcbased equipment is built upon technology that is not only a antequated, its flatout obsolete. Spare parts from asia and Software Patches from eastern europe. Three Main Companies provide a vast majority of Voting Machines for u. S. Elections. They are es s, dominion systems. But theres Little Market incentive to innovate, given the lack voting Machine Technology is outdated, trumps accusations of largescale voter fraud dont hold up. Recent study at Loyola Law School cast between 2000 and 2014 and found only 3 instances of voter fraud. That is a very low percentage. Aditi roy in San Francisco, thank you. Lionsgate announcing a new show based on candy crush coming soon to stant. Your 3 oclock is here. But theres one thing you do. Its called predix from ge. The cloudbased Development Platform thats industrialstrength strength whats Critical Thinking like . A basketball costs 14. Whats team spirit worth . cheers whats it worth to talk to your mom . Whats the value of a walk in the woods . The value of capital is to create, not just wealth, but things that matter. Morgan stanley im courtney reagan. Bringing a galaxy 7 note on to a plane could earn you some jail time. Passengers caught flying with a fireprone device could face up to ten years in prison and be liable for nearly 180,000 in penalties. Where in the world is bob dylan . The nobel panel has been looking to give the singer songwriter over 127,000 but cant find him. He was awarded the nobel prize for literature by the academy last week. Daring rescue on lake michigan. Wind surfer was plucked from the chilly waters after calling a friend to say he was in distress. The coast guard found him a mile offshore. Chuck berry says hes going to keep on rocking. The music legend is celebrating his 90th birthday by announcing he is coming out with an album. Berry, johnny b. Good and roll over beethoven expects to release an album next year. Its hard not to sing when you say those. Its your cousin, marvin berry. A very strong session for european equities over 1 for germany, france, spain and italy. There was a sphere that the European Bank would be less accommodating but that does not seem to be a factor in play today. Although the recent inflation figures out of the eurozone and uk. Consumer prices rising by 1 to a twoyear high. Some economists saying this is a first major sign of how the brexit is impacting uk households, some suggesting the weaker pound driving import costs from manufacturers. Now sticking with the uk, lets talk luxury. Burberry in focus. It did focus a firsthalf decline. Interesting comments, burberry saying it is seeing a challenging external environment. That stock moving to the downside. Ftse is european indexes and that sector as a whole will be in focus as the countdown continues for the china gdp number where economists are expecting the economy to grow by 6. 7 . Heavy exposure to china. So keep a close eye on these names. Meantime, italian Prime Minister mateo renzi making an official visit to the white house. Theyre waiting for the two leaders to make a statement at the rose room, strategists saying theyre hoping this visit will enl bolden renzis position ahead of the key referendum in italy december 4th. Back to you. Thank you, seema. Content war showing no signs of cooling down. Julia bornsten is in new york. Im joined now by michael burns, vice chair of lionsgate. Far better than expected results for netflix. Does their success come at the expense of a company you just acquired, starz . Someone asked me are they a friend, enemy or frenemy . What they really are is a customer. Were finishing up season one pickup, dear white people, weve had Great Success with them over the years with shows like orange is the new black. Ive heard over and over again, are all these carriers ultimately going to want to own all their shows and i will tell you that when we have a show that a bunch of buyers want, we typically get a deal very similar to what were looking for. Netflix said last night very specifically they want to move away from licensing shows and producing the shows themselves so they can own it. You can sell orange is the new black. They dont want you to be able to do that. Wont that move to producing their own content be a negative for lionsgate . I heard that over a decade, these channels or platforms say they want to make their own shows and when we have a show that they want to have, they typically give us the deal were looking for. Were a benevolent arms dealer. Well sell to anyone. We usually have competition for our show. John, want to jump in here . I do. Good morning, michael. I want to ask you about this candy crush show that i understand lionsgate has been working on for a couple of years now, an hours long. I first read this and thought really, seriously . What separates the type of game that you can turn into a live action show and one that you cant . This seems puzzling. If you take a look at the partnership at cbs and i would argue probably the best Media Executive in the world. So the combination, threeway deal between ourselves. King and cbs, we think this potentially will be a hit show and its an unbelievable brand with over, you know, a billion players. Now you have been making you have a new initiative to go direct to consumer by selling your shows through vimeo and trying to go direct to consumers with your starz app. Theres so many other players youre competing against, amazon, itunes. How can this succeed . If you take a look at amazon, for example, were very excited. Weve got a show in development with them, the bob dylan show. Nobel laureate, bob dylan. Theres plenty of room for all these players. Hit show on hulu, which is casual. Netflix, we talked about them earlier. Too Much Television and maybe thats true. Theres never enough great television. We look at this and we say we can theres room for overthetop players. Theres room for skinny bundles and big bundles. We like the idea, if you take a look at the theme that john and i have been pursuing for a long time, try to get closer to the consumer. And whether that is the starz app, which were very pleased with how thats doing the over the top, which theyre selling through amazon. And, again, the traditional msos that theyre doing very well with. We think theres plenty of room. Again, if you have differentiating content on those platforms, you can make them work. The big question here, though, is whats going on with your stock . Its down over 40 . Over that period you acquired starz. I think the market hates uncertainty. We didnt have a particularly great year theoretically last year. We had a couple of misfires. You have to take a look at the history of this company. 80 of our contribution was coming from the very volatile Motion Picture business. The nice thing about it right now, 16,000 titles, Television Business as well as obviously the starz deal, 80 of our contribution will be coming from very reliable cash flows. And if you take a look at the film business, that give you the optionality. Hunger games, you can make a ton of dough. Concern that you dont have a big franchise like hunger games. Again, were developing what we think are potential franchises, monopoly, king killer chronicles. Again, remember that if you take a look at the history of the business, look what Warner Brothers is doing with harry potter, the extension of that. Core franchises that were now monetizing. That lives on and on. We feel highly confident that were going to come up with another franchise. But again even without that this year, its going to be a much better theatrical year than it was last year. Kayla . Michael, this is Kayla Tausche at the stock exchange. A gold rush for Media Companies the last few years. We heard last night netflix saying the regulation of foreign content have become too ownerous and is ruling it out for now. How does lionsgate feel about it . Its a nice position to be a free agent. So we can license our content to a variety of places. Orange is the new black is streaming inside of china. We have a Great Partnership there with a slate deal with tik hunan. Well probably end up doing another slate deal in china. That marketplace is terrific for us. Even some movies that didnt do particularly well domestically like gods of egypt now you see me, 66 million domestically, it did close to 100 million in china. I know we dont have time but you signed on to a big deal last night to make films in china. Why move those overseas . It depends which jobs youre talking b typically well chase the money, whether were shooting deepwater horizon in louisiana or whether were shooting Television Shows in new mexico, new york. Were looking for the right opportunity. Well employ many americans, no matter where we shoot a particular movie. You take a look at the theatrical business for us. Were in 7,000 screens this weekend with a variety of films. Michael burns, thank you for joining us, vice chairman of lionsgate. Over to you. Julia bornsten. Thanks to michael burns. Shares rallying and on pace since november last year. Well talk to a top shareholder and analyst in a moment. Rick santelli, what are you watching . Im watching yields, fx. Well have an interesting piece coming up. Ill give you a clue as to what its about. Go way back in the way back machine. Tony orlando and dawn, how it can help you in trading after the break. Like you do sometimes, grandpa . Well, when you have copd, it can be hard to breathe. It can be hard to get air out, which can make it hard to get air in. So i talked to my doctor. She said. Symbicort could help you breathe better, starting within 5 minutes. Symbicort doesnt replace a rescue inhaler for sudden symptoms. Symbicort helps provide significant improvement of your lung function. Symbicort is for copd, including chronic bronchitis and emphysema. It should not be taken more than twice a day. Symbicort contains formoterol. Medicines like formoterol increase the risk of death from asthma problems. Symbicort may increase your risk of lung infections, osteoporosis, and some eye problems. You should tell your doctor if you have a heart condition or high Blood Pressure before taking it. Symbicort could mean a day with better breathing. Watch out, piggies children giggle symbicort. Breathe better starting within 5 minutes. Call or go online to learn more about a free trial offer. If you cant afford your medication, astrazeneca may be able to help. Do not miss the half time report. 15 minutes away, john. Ceo Reed Hastings says it will double down on original content. Netflix investor and Rbc Capital Markets lead analyst mark mahaney. Gentlemen, thanks for joining us. Thank you. I want to start with you, joe. When you look at netflix and its potential to grow from here, clear clearly, international is how do you judge netflix, does it just focus on monetizing this plan right now . Like weve said for a long time, you have to look at the long term, big picture. If youre just going to own the stock for 90 days you might as well flip a coin. Over the next three years, they launch 130 countries at the beginning of this year and international opportunity, we think, is five to seven times larger than their domestic. Mark, how did your view on this company shift between last quarter and this quarter . Last quarter, there was a lot of negativity around that subscriber miss. This quarter they seem to have sort of made up for it. I know that you have been on this stock for quite a while. How do we read the difference between these two quarters . Two or three things really came out. One was that they did have elevated churn in the june quarter. They acknowledged it and had to do with the fact that they were pushing through pretty big price increases. This quarter was kind of an abatement in that churn. But were not done yet. I think they still have more churn to deal with in the december quarter. Then you have kind of a clear read into next year or until they do the next price increase, which is probably a few years out. I think that was takeaway number one. Takeaway number two, in international markets, the ability to generate as many sub ads this year. Big picture number here, there are 1 billion paid tv subscribers worldwide and 100 million paid streaming worldwide. Those numbers, long term, can probably reverse and netflix is the leading playoff. We like the stock. We had hoped that another increase would be just around the corner. Hastings talked about humility, value. What did you read from that . Oh, trust management to make the right decisions for their customers. I think this is a customer assessed management team. Theyre always going to form the best product whether its content, price and really focus on building that level of trust that they have already established. Mark, what is the core benefit that netflix has . Is it this 80plus million Subscriber Base that theyre able to get data from and be able to tell what they want to watch next and thus make smarter, more Efficient Investments in content . Is that really the Pivotal Point there that we should be looking at . John, its the right question to ask. Theres probably a little bit of that. Its hard to know externally how well those algorithms are working at Getting Better and better content in front of us. They probably know more about the actual usage than any other Video Entertainment vendor. Secondly, its scale. 80 million subscribers are paying them ten bucks a month roughly. Cycle back into more content. Virtue use cycle thats awfully hard for somebody to catch up with. Last point comes up with bearish concerns about a hits driven business. Its not. The more hits that they can roll out, the deeper that library is, the more compelling the Value Proposition is. This is a scale business. Scale matters. Far and away the leading player. Fundamentals should continue to strength going forwards. Finally on china, is that considered a setback, that the entry into that country does not look good, in their words . And is there whats the time line you would expect them to try to make that work . We think obviously, its a huge opportunity. The company is still going to pursue it at some point. Were encouraged that theyre taking a thoughtful approach. Weve seen other companies try and act aggressively, enter the Chinese Market with mixed results. See them taking a conscious effort, understanding different nuances and finding a right way to gain those consumers. All right. Joe dennison and rbcs mark mahaney, thanks for joining us. Thank you. Thanks, john. Lets check in with rick and get the santelli exchange. Hey, rick. Hi, carl. Many of the markets now are at areas where its either going to be a resistance level and back away, back into a range Interest Rates or theyre going to push on through. And if whether we look at boones or guilds or treasuries, theres a big similarity whether we look at the dax, the gac, the s p. Theres similarities. Many ways these are tied together by Foreign Exchange and the dollar index reigns supreme. Is it the best metric . No. Look at this 15year chart of the dollar index on your screen because i think embedded in that chart may be the key as to whether many of these markets pop through the ranges or get held in and confined back into a consolidation. Lets go to the white board. Remember the clue i gave you . To tony orlando and dawn. What does that have to do with this . Knock three times. Dollar index, 15year chart. Here we have number one at 100. Here we have number two at 100. And right now, intraday at least, we have close to a penny and a half from touching 100. This is always based on closing levels. And the point is technicians have always had the knock three rule. Usually the third time you go through and you want to really be cautious here. Because you could give it a little time to make sure its going through. Sometimes these things are called kisses. Theyll kiss it, go a little through, fake you out and go lower. When you see how the dollar ind index, last time it did any serious work, or how it came down if this goes through, there will be some room. Other thing i always like to do when i talk about Technical Analysis is look at the pacman notion. Its the same principle. Scoop, scoop, scoop. Look at any metaphor, any analogy you want. We see higher Interest Rates, what Central Banks do, how the pound or impact inflation, maybe the easiest way to monitor all these issues is just to monitor 100 on the dollar index. John forte, back to you. Thanks, rick. Uber and lyft by giving drivers a bigger piece of the fare. When youre on hold, your business is on hold. Thats why comcast business doesnt leave you there. When you call, a Small Business expert will answer you in about 30 seconds. No annoying hold music. Just a real person, real fast. Whenever you need them. Great, thats what i said. So your business can get back to business. Sounds like my rides ready. Dont get stuck on hold. Reach an expert fast. Comcast business. Built for business. At the Marine Mammal center, the environment is everything. We want to do our very best for each and every animal, and we want to operate a sustainable facility. And pg e has been a partner helping us to achieve that. Weve helped the Marine Mammal center go solar, install electric vehicle charging stations, and become more energy efficient. Pg e has allowed us to be the most Sustainable Organization we can be. Any time you help a customer, its a really good feeling. Its especially so when its a customer thats doing such good and important work for the environment. Together, were building a better california. The Company Already has more than 16,000 drivers signed on to the service, and talman marco is the founder and ceo of juno, and he joins us here. Is it that easy, you can start a whole new company with a small twist to the Business Model . You would think so. Nothing is easy, but its not as difficult as one might think. I have taken a few junos. I found out about it in in an uber and in a lyft when the drivers had the phone up on their dashboard and it said 25 off your ride, ask your driver. I mean, thats a shot across the bow. I guess so. If you think about it, the best place to find potential user for a service is in the car, and juno is working much closer than any other service with drivers. We treat drivers much better. Therefore, drivers are motivated to help juno. Its sort of its a cycle. Were nice to drivers. Drivers are nice to riders. Riders get something extra, and it keeps on going. What do uber and lyft have to say about that . Have they reached out to you . I think this is something that youll have to ask uber and lyft. It seems like a race to the bottom right now in terms of service quality, in terms of price among a lot of these how are you going to be able to be in enough places that people can rely on you . Well, theres a certain inherent assumption in what you are saying that i have to spend a lot of money on marketing. I dont think thats necessarily the case. As evidenced by how you joined our service. We did not spend money on marketing. More than 50 of our users are coming through word of mouth. Just friends telling friends. So you think a driver revolt will be your marketing . I dont think i would use that term, but i think by working closely with drivers by being exceptionally good and fair to our drivers, we are turning this around. Our cost of recruiting drivers, our cost of recruiting riders are significantly lower than the cost of the competition. Uber is spending thousands of dollars on every driver. We are yet to spend a single dollar on driver referrals. We never pay our drivers to bring other drivers. They just tell their friends. Is it an intentional Business Model to let uber raise awareness for the practice, in general, do all the fighting with municipalities, have a deal with all the lawsuits, and then have you come in it afterwards like a minimnow next to a whale . I think if we have this discussion in 2009, i say im going to launch this service in 2016, it could have set the state of affairs as it is right now. These things are getting legalized. The drivers are there. Awareness is there. Now as a follower, there are opportunities for us to be far more efficient in terms of how we spend dollars to attract both drivers and riders. Our economics are much better because of that. How many drivers drive for juno and uber and lyft, and how many drivers are just fulltime employees of juno and only work for you . I dont know exactly how many of our drivers, if any choose to driver exclusively for juno. Were not encouraging them to do that. I can tell you that every one of our drivers in order to join juno have to show us that, a, he is driver for uber or lyft, and, b, whats most important that they have a high rating. Every one of our drivers is a high rated driver. You already are starting with a service thats inherently better. You are Getting Better drivers. You are getting drivers that have newer cars. You are getting drivers that are more excited to take you. When you enter that car as a juno passenger, they know theyre going to get equity in the company. They are actually our partners. Okay. Our drivers refer to juno as we. We as juno. When was the last time you heard an uber driver say we at uber. Its they. Its always they. They at uber. We at juno. We have to leave it there for now, but i know its a name, juno, that a lot of folks in new york city are becoming familiar with. Come back soon. Thank you very much. When we come back, Vice President tim cook not as farfetched as you might think. Details on that in just a moment. [alarm clock beeping] look out honey. The highly advanced audi a4. Aint got time to make no apologies. There are many things you dont like coffee. Strial strength but theres one thing you do. You guys okay . its called predix from ge. The cloudbased Development Platform thats industrialstrength strength a leaked email from wikileaks shows names under consideration, including apples tim cook, bill and melinda gates. Also, ursela burns, mike bloomberg. By the way, we will talk to vp candidate tim kaine on closing bell 4 00 eastern time. No way those would have been personalitywise, cant see it. Wish list. You could call it. Now to wapner and the half. Carl, thanks so much. Welcome to the halftime report. Stocks higher this hour on the back of some pretty good earnings from several members of the s p 500. We have two special guests with us today to help make sense of the investing landscape. Jamie is the founder, chairman, and ceo of york capital management. Mark lazerie, ceo of avenue capital. Both with us today for the hour. Along with joe terra nova, josh brown and pete najarian. Great to have you together on the set. Lets talk about the market environment. Jamie, ill go to you first. It