Transcripts For CNBC Squawk Alley 20160331 : vimarsana.com

First up the iphone se and new pro now available in apple Stores Across the country. Josh is outside one of them in palo alto. How is it going. As you can see its pretty quite still here in downtown palo alto and another sign of that expected muted reaction apple stores will be open at their regular times today but we should keep in mind that for apple the se is targeting a different consumer. Apple did sell 30 million iphones last year. The hope is they now give some of the people a reason to upgrade and also with the starting price of 399 it could also appeal to more price Conscious Consumers and theres also the new smaller version of the ipad protoday. For our audience, for traders, for investors, the ipad is no longer as financially material as it once was. It now makes up 10 of the countrys revenue but whenever i talk to tim cook he remains confident in the product and the ipad and does believe theyll continue taking more and more share in the work place. Look at apple stock. They believe it could provide Additional Support in the slower june quarter. Looking ahead, the next would be the iphone 7 in the fall. And putting together their wish list for that device. Stronger battery life and faster charging. Back to you. Thank you so much. Well wait and see what happens when that actually opens but we appreciate the report this morning. Steady treatment of am news. Nbc news reporng the fbi helped to unlock an iphone and ipod in a arkansas murder case. According to Bob Wright Jack Welch passed on buying apple for just 2 billion back in 1996. Heres what he told squawk box. Apple came to us, we had had quarterly meetings and he wanted the opportunity to give his pitch. A lot of people would do that. He gave a pitch in 1996 and he broke down during the presentation. He was telling us that the stock is killing him. The investors are on his back and he cant get this thing rolling. The consensus in the room was we cant do anything with this. This is way outside of our game. We wer not a Silicon Valley company or orientation at that point and there was no supporters at all but we all felt terrible that we couldnt jump in here. Who didnt have the chance to buy apple 20 years ago . And that was a great insight. The turn around of apple is a shockingly rare event and i would argue completely unpredictable at the time. Before steve got there and before all the new products. They made a good decision. It wasnt apple. Steve jobs wasnt there. So many things had to happen. Steve jobs had to come back and introduce the programming that braug os 10 and cut back the product strategy dramatically. Allow them to refocus. Arm technologies had the huge surge which helped fund Apples Research and development that lead to the ipod and iphone and so on and if ge had bought it it would have been something completely different. Thats a pretty stunning chart we should mention here over the last ten years. Ge is down 8 . Apple is up more than 1,000 . Of course apple wasnt flat lined by the financial crisis but but this has become a product were familiar with and its facing its own cannibalization of its own products. Can it rejuvenate the ipad . Thats the main thing is the larger iphone and the good news for apple is if youre going to sell one of the two, theyre in great shape selling a super expensive big iphone because they make a huge amount of money there too but the idea that theres this massive untapped market for tablets, we havent discovered it yet. The apps arent there yet, obviously. Can we go to the fbi thing for one second because im fascinated that now theyre opening up other phones which is exactly what steve jobs said. Not steve jobs tim cook. The argument is the slippery slope has begun. Having said that its now completely out of their control. A lot of interesting things. First fbi is thumbing its nose at apple. Apple is were going to make it so nobody can get in and the fbi is saying we dont need your help. We got in. Secondly this is a very good reminder of why it might be helpful for society to allow a way to get into these phones. This is a murder investigation. The fbi or police think theres useful data on the phone. It would be nice to get at it. This is another side of it. I dont know about this thumbing the nose at apple. I dont know if apple is happy theyre able to break into the phone but the main issue for them was dont try to force us to make software that we dont want to make. If the best intelligence agencies in the world can figure out a way into an iphone to solve a crime. Good for them. Wait for the next os release and see if you can get into that. Exactly. Theyll one up it. But thats worse. Now its on apple to make it more secure if thats how they feel about it. We should move on though. A new report by citi says an uber moment for banks is coming and more than a Million People could use their jobs. Banks are quickly approaching the Tipping Point and could see a 30 reduction in staff over the next decade. We know that Silicon Valley has been gunning for wall street for a decade at this point. Why is now the Tipping Point. Is it . Were talking about a long Tipping Point. Its going to happen slowly. The idea that banks will get more efficient and we can move to mobile banking and things. Do you need the huge Retail Networks . Probably not. So changes overtime make sense and its a reasonable call. I would argue the ramifications are larger when it comes to employment. Think about new york city. Its like starbucks now. Theres a bank on every corner. If all the braings shutdown what happens to the real estate price. You can see a real ripple effect. Yes, but this is what the economy does but appreciate whats about to happen here. Absolutely. The economy will adjust to that. The economy naturally adjusts to this. Obviously its horrible if your job is he little nated but the economy will employ and ultimately take care of the space issue. Im wondering if there are any Cautionary Tales in the valley that the banks with these cumbersome pieces of real estate, legacy architecture and hundreds of thousands of employees should look to, hp maybe . Oh gosh. This is continuing to happen in technology as well, theres a big looming job loss in it from the cloud. You have them going around saying we want you to switch to the cloud and customers are saying how can we afford this . Theyre going to have to cut people currently keeping up their it infrastructure and they have not done that in a massive way yet and when that starts to happen over the next year or two were going to see massive lay offs there but the irony here in banking is people need those are jobs replaced by people working for the cloud companies. Theyre being replaced by software. Its about taking the people out of it. You dont need somebody to maintain the server because the server is being maintained by amazon and they know how to do it with software. People need more help with their money than they ever needed so we still need people. Smart people in finance in banking but maybe not doing the branch job they used to do. Youre more tech savvy than the average person but just before we leave this topic were talking about jobs being replaced by machines. They know thats largely happening on lending and on the consumer and payments side. They say theres basically very little capital going after insurance, Investment Banking and working with corporations. If youre working at one of these banks where do you feel youre safe . Advice. People are always going to need that and new services. The thing that replaced farming and manufacturing in the economy is services. New services will evolve. These huge campuses of old dying Silicon Valley companies have now been occupied by facebook. Hes going to send you an email and tell you to stay in the market. And then youll find Something Else to do with your time. Thats how society and progress and the invisible hand works and it works. All you have to do is step back and look at the transformation of this economy over hundreds of years. Its all happening as washington wants to regulate the innovation at these banks. Thank you for having me. We do want to check in on the markets on the last day of the first quarter. Right now trading roughly flat. The dow is up slightly, the s p about the same and fit bit shares rallying after it shipped more than a billion blaze devices it cant be a billion a million blaze devices in the first month i should say of availability. Shares still down close to 30 since the ipo. Also a nice gain after they upped the price target to 168 a share. Seeing Strong Customer growth at watson and has more confidence in full year estimates. Coming up as election season rolls on, the next battleground this year is going to be on mobile. Well tell you who stands to benefit. Plus, lately Movie Theaters doing anything they can to compete with streaming. One plan could let you rent same day releases in your home. 50 per movie. We have the details. And sis coeciscos john chamberd the board of a drone company. Not as interested in the planes themselves as the software. Hell join us live in a cnbc interview. Back in a molt. Audi pilotless vehicles have conquered highways, mountains, and racetracks. And now much of that same advanced technology is found in the new audi a4. With one notable difference. The allnew audi a4, with available traffic jam assist. This is a week when he had to defend his Campaign Manager against battery charges on a female reporter and defend himself for ted cruz over their wives and now he has to defend himself on the issue of abortion after this exchange about this exchange with Chris Matthews. Do you believe in punishment for abortion . Yes or no . As a principle. The answer is there has to be some form of punishment. For the women. Yes. There has to be some form. How much trouble is he in in the wake of this . He has taken back these remarks saying only the Abortion Provider would face punishment and not the woman herself. We have a new poll out in the state of wisconsin. Ted cruz has got a 10 lead over donald trump. Thats not what donald trump wants to hear. The New York Primary theres a new poll out today showing donald trump ahead by 36 points over ted cruz so whether or not this is a bump in the road or the sign of a lasting problem. We dont know yet. Well have to see the voters let us sort it out, john. Thank you for that. Great to see you again. Mobile devices playing a big role in this years election but the question is how much. Joining us from miami. Im walking down the street seeing people on their iphone watching by the way, the Chris Matthews interview with donald trump physically on the phones but how much do you see in terms of the impact of mobile on this election . Well, mobile devices are accounting for about 70 of all the time spent on the internet and if you look at certain segments of the population, somewhere around 20 of their time is only spent on mobile devices where in the hispanic segment its a third of millennial hispanics using their mobile devices to access the internet. So its important to get information and video is just one of the ways in which people are enjoying content. The other thing thats important is the role social is playing in this election. Facebook on twitter, somewhere and 80 of the time is coming via mobile device and the influence that the social networks are having on Voter Preferences is pretty astounding. How about, programming versus social. You look at trump. Hes on twitter every day. He makes news on twitter which then feeds back on television which then creates a video which then gets back on social, versus folks trying to do paid things on twitter or book. Is the paid stuff working . Its working but what works better is the organic communication. Theres a phenomenon on the social network where is people have friends that share the same preferences and the same political believes whaend you get a communication coming in from a trusted friend it has a pretty persuasive impact on you and thats one of the ways Bernie Sanders came out of nowhere. This organic immucommunication exploded and made him a viable candidate. Donald trump is leveraging social but in a different way. Hes so ready to tweet and looks like he is personally tweeting so theres an authentic aspect to it but hes tweeting so often that the mainstream news organizations are picking it up and hes producing a massive amount of content then communicated by television. What do we know about what it takes for this digital activity to translate into actual real world action . Is it more likely to have an impact on mobilizing people to go out and canvas door to door . To bring out the vote and get people registered or is it more likely to result in people changing their opinions about certain candidates . I think its much more about the former. I think it is certainly helping bring it out and mobilize people et cetera, et cetera but probably given the phenomenon its likely reinforcing ones already held believes. But then you have, you know, you that social impact and then its being amply identifiified by te. Whats going on today is astounding. For example, we now have 40 Million Television set top boxes that are providing us Continuous Measurement of audiences and the campaigns are integrating all of that information with Voter Registration data and their own data and its amazing. Cofounder, of comscore. Thank you. Thank you. Up next, would you pay 50 to watch a movie at home the same day it appears in theaters . Sean parker is hoping yes. We have the details on that story in a moment. Welcome back. Movie theater stocks all downgrade on concerns about tough comparisons for the sector. Julia joins us with a sneak peek at the technology that aims to fight the rise of Home Entertainment alternatives. Julia. Well, take a look. This three screen panoramic theater with surround sound is called the escape and it launches here tomorrow in Downtown Los Angeles at this theater. Unveiling new laser projectors and immersive peekers. Theaters are grahdealing with t fact that the number of tickets declined 7 . Thats thanks to the explosion of premium content available at home and that threat will only continue to grow. Sean parker is working on Screening Room to allow people to watch movies at home the day they debut in theaters. Plus nearly half of all u. S. Homes are projected to own a 4k tv by 2020. We need to raise the bar. We need to do something that is so compelling that people put down the ipad and leave the couch and go to the cinema. This is why we created barko escape. This new theater joined thekx theater already here. The seats move and theres wind and smells but more accessible is this triple screen here behind me. It costs twice what it would cost to install a traditional screen and theyre talking to all the theater chains to roll out at a thousand locations over the next 3 to 5 years so the more your living room feels like a Movie Theater, the more your Movie Theater is going to become hightech. Back to you. Thank you, julia. Always looking for excuses to get out of the house. Joining the board of a technology company. Dropping the ceo title at sis coe. Hes going to join us in an interview when we come back. Became a stay over. And a parade rained on the sales teams parade. And they still made the meeting, without actually going to the meeting. Before any of this, cdw orchestrated a mobility solution, using the hp elite x2 1012 with intel core m vpro processors. Mobility by hp. Orchestration by cdw. Four Turkish Police officers were killed and 20 people wounded when an explosion hit a passing Police Vehicle in a southeastern turkish city. The blast hit here a bus station in the city which is the largest in the kurdish southeast. Several ambulances were rushed to the scene. Authorities searching a wooded residential area close to the French Border amid reports that the action was related to the french suspect. The eiffel tower in paris closed due to a strike over government reforms which would relax the 35 hour work week and other rules. There was not enough staff to keep the tower open. And Severe Weather rolled through eastern oklahoma wednesday evening. These pictures are from the tulsa area where a tornado touched down. 7 people were reportedly taken to the hospital with injuries youre up to date. Lets get back downtown to kayla. Thank you so much for that. Europe has just closed. Lets bring in simon hobbs as we get the movers across europe. European markets heading lower as you can see into the end of that quarter. Though some of them are off their lows. Of course theres a battle in the Foreign Exchange markets in the wake of the dollar weakness after what yellen told us. You see that the euro is moving higher just on a weekly basis. Thats up almost 2 on the euro. We broke above 1. 14 but this is what the European Central bank does not want to see of course tomorrow they double down to 80 billion euros a month. The banks are the focus today. Particularly the italian banks. They may delay what is a rights issue and ipo for one of the cooperative banks. Its on the hook effectively to guarentee up to 1. 7 billion of that transaction and theres some nervousness about how that might be received by the market and therefore a bigger comment on investor appetite for bank shares. Particularly bank shares in italy. Theyre off their lows but still down 3 . Weaker banks have also fallen. Its also important to note that its still going through its own separate project which is very similar so it may also comment to the relative strength of the Stores Across<\/a> the country. Josh is outside one of them in palo alto. How is it going. As you can see its pretty quite still here in downtown palo alto and another sign of that expected muted reaction apple stores will be open at their regular times today but we should keep in mind that for apple the se is targeting a different consumer. Apple did sell 30 million iphones last year. The hope is they now give some of the people a reason to upgrade and also with the starting price of 399 it could also appeal to more price Conscious Consumers<\/a> and theres also the new smaller version of the ipad protoday. For our audience, for traders, for investors, the ipad is no longer as financially material as it once was. It now makes up 10 of the countrys revenue but whenever i talk to tim cook he remains confident in the product and the ipad and does believe theyll continue taking more and more share in the work place. Look at apple stock. They believe it could provide Additional Support<\/a> in the slower june quarter. Looking ahead, the next would be the iphone 7 in the fall. And putting together their wish list for that device. Stronger battery life and faster charging. Back to you. Thank you so much. Well wait and see what happens when that actually opens but we appreciate the report this morning. Steady treatment of am news. Nbc news reporng the fbi helped to unlock an iphone and ipod in a arkansas murder case. According to Bob Wright Jack Welch<\/a> passed on buying apple for just 2 billion back in 1996. Heres what he told squawk box. Apple came to us, we had had quarterly meetings and he wanted the opportunity to give his pitch. A lot of people would do that. He gave a pitch in 1996 and he broke down during the presentation. He was telling us that the stock is killing him. The investors are on his back and he cant get this thing rolling. The consensus in the room was we cant do anything with this. This is way outside of our game. We wer not a Silicon Valley<\/a> company or orientation at that point and there was no supporters at all but we all felt terrible that we couldnt jump in here. Who didnt have the chance to buy apple 20 years ago . And that was a great insight. The turn around of apple is a shockingly rare event and i would argue completely unpredictable at the time. Before steve got there and before all the new products. They made a good decision. It wasnt apple. Steve jobs wasnt there. So many things had to happen. Steve jobs had to come back and introduce the programming that braug os 10 and cut back the product strategy dramatically. Allow them to refocus. Arm technologies had the huge surge which helped fund Apples Research<\/a> and development that lead to the ipod and iphone and so on and if ge had bought it it would have been something completely different. Thats a pretty stunning chart we should mention here over the last ten years. Ge is down 8 . Apple is up more than 1,000 . Of course apple wasnt flat lined by the financial crisis but but this has become a product were familiar with and its facing its own cannibalization of its own products. Can it rejuvenate the ipad . Thats the main thing is the larger iphone and the good news for apple is if youre going to sell one of the two, theyre in great shape selling a super expensive big iphone because they make a huge amount of money there too but the idea that theres this massive untapped market for tablets, we havent discovered it yet. The apps arent there yet, obviously. Can we go to the fbi thing for one second because im fascinated that now theyre opening up other phones which is exactly what steve jobs said. Not steve jobs tim cook. The argument is the slippery slope has begun. Having said that its now completely out of their control. A lot of interesting things. First fbi is thumbing its nose at apple. Apple is were going to make it so nobody can get in and the fbi is saying we dont need your help. We got in. Secondly this is a very good reminder of why it might be helpful for society to allow a way to get into these phones. This is a murder investigation. The fbi or police think theres useful data on the phone. It would be nice to get at it. This is another side of it. I dont know about this thumbing the nose at apple. I dont know if apple is happy theyre able to break into the phone but the main issue for them was dont try to force us to make software that we dont want to make. If the best intelligence agencies in the world can figure out a way into an iphone to solve a crime. Good for them. Wait for the next os release and see if you can get into that. Exactly. Theyll one up it. But thats worse. Now its on apple to make it more secure if thats how they feel about it. We should move on though. A new report by citi says an uber moment for banks is coming and more than a Million People<\/a> could use their jobs. Banks are quickly approaching the Tipping Point<\/a> and could see a 30 reduction in staff over the next decade. We know that Silicon Valley<\/a> has been gunning for wall street for a decade at this point. Why is now the Tipping Point<\/a>. Is it . Were talking about a long Tipping Point<\/a>. Its going to happen slowly. The idea that banks will get more efficient and we can move to mobile banking and things. Do you need the huge Retail Networks<\/a> . Probably not. So changes overtime make sense and its a reasonable call. I would argue the ramifications are larger when it comes to employment. Think about new york city. Its like starbucks now. Theres a bank on every corner. If all the braings shutdown what happens to the real estate price. You can see a real ripple effect. Yes, but this is what the economy does but appreciate whats about to happen here. Absolutely. The economy will adjust to that. The economy naturally adjusts to this. Obviously its horrible if your job is he little nated but the economy will employ and ultimately take care of the space issue. Im wondering if there are any Cautionary Tales<\/a> in the valley that the banks with these cumbersome pieces of real estate, legacy architecture and hundreds of thousands of employees should look to, hp maybe . Oh gosh. This is continuing to happen in technology as well, theres a big looming job loss in it from the cloud. You have them going around saying we want you to switch to the cloud and customers are saying how can we afford this . Theyre going to have to cut people currently keeping up their it infrastructure and they have not done that in a massive way yet and when that starts to happen over the next year or two were going to see massive lay offs there but the irony here in banking is people need those are jobs replaced by people working for the cloud companies. Theyre being replaced by software. Its about taking the people out of it. You dont need somebody to maintain the server because the server is being maintained by amazon and they know how to do it with software. People need more help with their money than they ever needed so we still need people. Smart people in finance in banking but maybe not doing the branch job they used to do. Youre more tech savvy than the average person but just before we leave this topic were talking about jobs being replaced by machines. They know thats largely happening on lending and on the consumer and payments side. They say theres basically very little capital going after insurance, Investment Banking<\/a> and working with corporations. If youre working at one of these banks where do you feel youre safe . Advice. People are always going to need that and new services. The thing that replaced farming and manufacturing in the economy is services. New services will evolve. These huge campuses of old dying Silicon Valley<\/a> companies have now been occupied by facebook. Hes going to send you an email and tell you to stay in the market. And then youll find Something Else<\/a> to do with your time. Thats how society and progress and the invisible hand works and it works. All you have to do is step back and look at the transformation of this economy over hundreds of years. Its all happening as washington wants to regulate the innovation at these banks. Thank you for having me. We do want to check in on the markets on the last day of the first quarter. Right now trading roughly flat. The dow is up slightly, the s p about the same and fit bit shares rallying after it shipped more than a billion blaze devices it cant be a billion a million blaze devices in the first month i should say of availability. Shares still down close to 30 since the ipo. Also a nice gain after they upped the price target to 168 a share. Seeing Strong Customer<\/a> growth at watson and has more confidence in full year estimates. Coming up as election season rolls on, the next battleground this year is going to be on mobile. Well tell you who stands to benefit. Plus, lately Movie Theater<\/a>s doing anything they can to compete with streaming. One plan could let you rent same day releases in your home. 50 per movie. We have the details. And sis coeciscos john chamberd the board of a drone company. Not as interested in the planes themselves as the software. Hell join us live in a cnbc interview. Back in a molt. Audi pilotless vehicles have conquered highways, mountains, and racetracks. And now much of that same advanced technology is found in the new audi a4. With one notable difference. The allnew audi a4, with available traffic jam assist. This is a week when he had to defend his Campaign Manager<\/a> against battery charges on a female reporter and defend himself for ted cruz over their wives and now he has to defend himself on the issue of abortion after this exchange about this exchange with Chris Matthews<\/a>. Do you believe in punishment for abortion . Yes or no . As a principle. The answer is there has to be some form of punishment. For the women. Yes. There has to be some form. How much trouble is he in in the wake of this . He has taken back these remarks saying only the Abortion Provider<\/a> would face punishment and not the woman herself. We have a new poll out in the state of wisconsin. Ted cruz has got a 10 lead over donald trump. Thats not what donald trump wants to hear. The New York Primary<\/a> theres a new poll out today showing donald trump ahead by 36 points over ted cruz so whether or not this is a bump in the road or the sign of a lasting problem. We dont know yet. Well have to see the voters let us sort it out, john. Thank you for that. Great to see you again. Mobile devices playing a big role in this years election but the question is how much. Joining us from miami. Im walking down the street seeing people on their iphone watching by the way, the Chris Matthews<\/a> interview with donald trump physically on the phones but how much do you see in terms of the impact of mobile on this election . Well, mobile devices are accounting for about 70 of all the time spent on the internet and if you look at certain segments of the population, somewhere around 20 of their time is only spent on mobile devices where in the hispanic segment its a third of millennial hispanics using their mobile devices to access the internet. So its important to get information and video is just one of the ways in which people are enjoying content. The other thing thats important is the role social is playing in this election. Facebook on twitter, somewhere and 80 of the time is coming via mobile device and the influence that the social networks are having on Voter Preferences<\/a> is pretty astounding. How about, programming versus social. You look at trump. Hes on twitter every day. He makes news on twitter which then feeds back on television which then creates a video which then gets back on social, versus folks trying to do paid things on twitter or book. Is the paid stuff working . Its working but what works better is the organic communication. Theres a phenomenon on the social network where is people have friends that share the same preferences and the same political believes whaend you get a communication coming in from a trusted friend it has a pretty persuasive impact on you and thats one of the ways Bernie Sanders<\/a> came out of nowhere. This organic immucommunication exploded and made him a viable candidate. Donald trump is leveraging social but in a different way. Hes so ready to tweet and looks like he is personally tweeting so theres an authentic aspect to it but hes tweeting so often that the mainstream news organizations are picking it up and hes producing a massive amount of content then communicated by television. What do we know about what it takes for this digital activity to translate into actual real world action . Is it more likely to have an impact on mobilizing people to go out and canvas door to door . To bring out the vote and get people registered or is it more likely to result in people changing their opinions about certain candidates . I think its much more about the former. I think it is certainly helping bring it out and mobilize people et cetera, et cetera but probably given the phenomenon its likely reinforcing ones already held believes. But then you have, you know, you that social impact and then its being amply identifiified by te. Whats going on today is astounding. For example, we now have 40 Million Television<\/a> set top boxes that are providing us Continuous Measurement<\/a> of audiences and the campaigns are integrating all of that information with Voter Registration<\/a> data and their own data and its amazing. Cofounder, of comscore. Thank you. Thank you. Up next, would you pay 50 to watch a movie at home the same day it appears in theaters . Sean parker is hoping yes. We have the details on that story in a moment. Welcome back. Movie theater stocks all downgrade on concerns about tough comparisons for the sector. Julia joins us with a sneak peek at the technology that aims to fight the rise of Home Entertainment<\/a> alternatives. Julia. Well, take a look. This three screen panoramic theater with surround sound is called the escape and it launches here tomorrow in Downtown Los Angeles<\/a> at this theater. Unveiling new laser projectors and immersive peekers. Theaters are grahdealing with t fact that the number of tickets declined 7 . Thats thanks to the explosion of premium content available at home and that threat will only continue to grow. Sean parker is working on Screening Room<\/a> to allow people to watch movies at home the day they debut in theaters. Plus nearly half of all u. S. Homes are projected to own a 4k tv by 2020. We need to raise the bar. We need to do something that is so compelling that people put down the ipad and leave the couch and go to the cinema. This is why we created barko escape. This new theater joined thekx theater already here. The seats move and theres wind and smells but more accessible is this triple screen here behind me. It costs twice what it would cost to install a traditional screen and theyre talking to all the theater chains to roll out at a thousand locations over the next 3 to 5 years so the more your living room feels like a Movie Theater<\/a>, the more your Movie Theater<\/a> is going to become hightech. Back to you. Thank you, julia. Always looking for excuses to get out of the house. Joining the board of a technology company. Dropping the ceo title at sis coe. Hes going to join us in an interview when we come back. Became a stay over. And a parade rained on the sales teams parade. And they still made the meeting, without actually going to the meeting. Before any of this, cdw orchestrated a mobility solution, using the hp elite x2 1012 with intel core m vpro processors. Mobility by hp. Orchestration by cdw. Four Turkish Police<\/a> officers were killed and 20 people wounded when an explosion hit a passing Police Vehicle<\/a> in a southeastern turkish city. The blast hit here a bus station in the city which is the largest in the kurdish southeast. Several ambulances were rushed to the scene. Authorities searching a wooded residential area close to the French Border<\/a> amid reports that the action was related to the french suspect. The eiffel tower in paris closed due to a strike over government reforms which would relax the 35 hour work week and other rules. There was not enough staff to keep the tower open. And Severe Weather<\/a> rolled through eastern oklahoma wednesday evening. These pictures are from the tulsa area where a tornado touched down. 7 people were reportedly taken to the hospital with injuries youre up to date. Lets get back downtown to kayla. Thank you so much for that. Europe has just closed. Lets bring in simon hobbs as we get the movers across europe. European markets heading lower as you can see into the end of that quarter. Though some of them are off their lows. Of course theres a battle in the Foreign Exchange<\/a> markets in the wake of the dollar weakness after what yellen told us. You see that the euro is moving higher just on a weekly basis. Thats up almost 2 on the euro. We broke above 1. 14 but this is what the European Central<\/a> bank does not want to see of course tomorrow they double down to 80 billion euros a month. The banks are the focus today. Particularly the italian banks. They may delay what is a rights issue and ipo for one of the cooperative banks. Its on the hook effectively to guarentee up to 1. 7 billion of that transaction and theres some nervousness about how that might be received by the market and therefore a bigger comment on investor appetite for bank shares. Particularly bank shares in italy. Theyre off their lows but still down 3 . Weaker banks have also fallen. Its also important to note that its still going through its own separate project which is very similar so it may also comment to the relative strength of the Balance Sheet<\/a> that important because they dont have a proper government in place so they cant enact budget reforms. Meantime, lets wrap it up for the quarter in europe and youll see where as the s p here has recovered into positive territory for the first lee months. The Broader Market<\/a> in europe, the stoxx 600 is still down and the banks stoxx index is still down 20 despite the fact of course that you have the ecb come through with the extra mechanisms which boosted the bank shares after march 10th but they headed back down into negative territory as we await of course the double down on qe tomorrow. Thank you guys. Thank you so much. Midtown manhattan, john kasich is taking questions on Donald Trumps<\/a> come mens. You need to be able to get it right the first time. We know about his comments on abortion which put women in a very difficult position and he has since moved to correct those in one way or another. He talked about the use of Nuclear Weapons<\/a> in the middle east and europe. You wonder about his hand or his thumb getting any close to the critical button that president s are in charge of. Number three, he said we should abollish the george anthoneva c and engage in, i guess, more torture which doesnt set well with the people that served our country so honorable. People like john mccain. He called on nato abollished. I happen to believe that nato needs to be strengthened and turned from solely a military organization into an intelligence and policing organization that can work across boarders to make sure that we can begin to create safe areas in europe forcing people to work together, to gather intelligence and also to learn how to properly police. Its absolutely critical now in a world where we have people intent on just destroying us because of our way of life. Believing that somehow that gets them a path to paradise. This morning i had a long conversation with my former colleague who spent a lot of time over in the middle east. Particularly working with the kurds and its based on destroying us. People with attitudes like this need to be destroyed and we need to find out where they are and we cannot get this done unless were able to have the effective intelligence gathered all across the globe from people of all faiths because i believe is that john kasich speaking in new york city addressing comments by donald trump yesterday evening at the msnbc town hall as well as his stance on Foreign Policy<\/a> saying the u. S. Should strengthen its relationship with nato. This is coming ahead of next week. He is saying all very sensible things but i dont think the American Public<\/a> cares. Its almost going over peoples heads. The reason that donald trump resinated with the public is hes talking at a base level. What kasich is trying to do is draw a line between these abortion comments that some people found irresponsible to come mens on the use of Nuclear Weapons<\/a> and his comments on nato and tie that back into the need to coordinate intelligence. So hes trying to thread the needle here. The finger on the button thing is a compelling argument. Who really has control of that . And i dont think voters think about that enough. Indeed. Former cisco ceo is a part of this round and now joins the board of directors. Its great to see both of you. Thanks for having us. First to you, you founded this company five years ago now so you have been at this for awhile and youre focused on software. Normally when we talk drones were looking at the hardware and maybe the images that drones are taking. Why did you focus on the hardware system. Around the time i started the company there were over 700 Companies Globally<\/a> building the drones themselves so a lot of investment in the device layer and a lack of Enterprise Software<\/a> to tie the pieces together and take these images and turn them into insights that companies could be using so thats been our focus as a company. What lead you to say i want to not only invest but sit on its board. The biggest market transition is the internet of things. The result of every company and country in the world. Air wear focuses on the robots piece of that and the drone component part of it and oil and gas and the utility sector et cetera. They got really excited but also this young man. He is an amazing yun ceo. He built his team very well and they are at an Inflection Point<\/a> that youre talking about drones going from 2. 7 million drones a year to 7 million in the next four years. His team can lead the entire segment of this business. What gives you the confidence that now is a time when this is going to happen. You know better than most that government policy and regulation can have an enormous impact on an emerging technologys ability to really take off. Is there somewhere else you see the technology accelerating more quickly that convinces you now is the time to put the technology into a company like air wear. You know getting market transitions right one to two years before they take off is the whole key. One of the things that i found is they understand the issues around drones. This is an Inflection Point<\/a> and its going to be five to ten times to date and the segments that relate to operational changes to do innovation, jonathan has his company well. Maybe your thoughts on why you started getting involved with those early. Were very encouraged by the progress. A couple of years ago there were no companies in the United States<\/a> allowed to operate drones commercially. Today we have over 4,000 granted exemptions to enable commercial operations. 200 of those with large fortune 500 companies and further regulatory barriers with the release of a small rule for unmanned aircraft. To the last part of the question john you find france understanding this. Theyre very progressive in terms of their regulations and also in terms of the digittization thoughts for their countries and their businesses. John, talking about policy and regulation, hoping you can weigh it into the debate around apple and the fbi. You dealt with back door questions around the world before. When you look at that issue, where do you come down . On the side of apple. However government has very legitimate issues that they ought to get together and say how do you solve . However you solve it here has to be true for the rest of the world. Why jonathan is taking this company around digittization you have to be able to address the same regulations and say how do you address the legitimate needs of government and heres trust and security and privacy. Is there a sector where you feel the need is so dyer there might be a fast track with regulators to get this technology implemented at the enterprise level more quickly than we would have otherwise thought . The last year surprised me. We have seen a lot of rapid adoption where all 10 of the companies have section 333 exemptions meaning they have gone through the process to get permission from the faa. Were working with the Largest Insurance Companies<\/a> in the United States<\/a> including state farm now and the faa has been very supportive of our limited development thats on going now in the testing that were doing with them and so this is an entire industry need with a lot of rapid progress and its no surprise. Companies are looking for better access today at a to create better insights but also operational cost savings and enhancing worker safety. What was interesting is when i called cios and ceos i was thinking about going on this board with an exciting Young Leadership Team<\/a> every one of them was aware of the concepts of drones and how could it transform segments of their business so theyre all trying to innovate and recreate themselves for their future. John, you have done it on a platform base and outcome base as opposed to individual segments. Thats really go ahead. Weve really found thats what the market needs because the companies that were working with they dont want to use drones for one application. They want to use it for a lot of different applications including the multirow to vehicles but also fixed wing aircraft. Im curious about your conversation with other ceos and experience having run cisco which is a highly global business. You joked youre a moderate republican which is an endangered species and were hearing this rhetoric around huge tariffs on chinese exports and some tax policies being thrown around and im just wondering how you read the policies that you have seen so far and whether they worry you or theres some feasibility in there. Two comments to that. First im A John Kasich<\/a> fan. I thought he was articulate and he would make an excellent president. To the second part of your question, what is missing, republicans and democrat, every country in the world is talking about a digittization policy. That is true when youre with Prime Minister<\/a> modi where i was two weeks ago. This is missing entirely from the u. S. Debate so we have to think about how we Reskill America<\/a> and how we raise the incomes of our model class like during the 90s. This is where i did one of my first interviews over 0 years ago before i became the ceo. Its very good with you with your company and id love to see you hit those growth rates as well. Thank you. And jonathan, sitting there next to John Chambers<\/a> is also not bad. But i want to ask you, also in the news is techs reaction. Techs reaction to this North Carolina<\/a> law that would basically overrule local antidiscrimination ordinances. What is your take on techs reaction to that and on what seems to me to be an increasing amount of social activism in cess . We do not tolerate discrimination in any format. As an individual i was disappointed in the North Carolina<\/a> position on this and id like to see them revisit that and get it changed. All right. Very much appreciate you being here with us on squawk alley. Thank you. Thank you very much, john. Good to see you again. Thank you and andrew. Thank you. Yes, thanks to both of you. Meanwhile a quite rally afoot in the markets now. Lets get to rick and the santelli exchange. Thank you, kayla. Indeed as i always do i like to hn to all the great interviews and i walk away with the notion that mr. Chambers is pointing outside the country, a big finger saying europe is doing it better. Theyre all doing it better. Helping train for better employees with all the skills needed for the 21st centurys economy but if thats true why is our economy still doing better than their economies . Im sorry doesnt hold water. We cant control outcomes and make statements like governments need to make sure people are better suited to do certain jobs. If its governments job to do that then you shouldnt look toward europe. A profit motive and successful employee have to pull themselves up by the boot straps. You cant legislate that stuff. You can legislate incentives to help businesses see the light for sure which leads into my talk today. Massaging the messengers. Their pillars. What do they entail . Maximum employment . They want the best level of employment and stable prices. My definition of stability is exactly what price versus been doing. Theyre running less than they would like. But Something Else<\/a> has changed they complete various surveys with regard to jobs. Kansas city fed like the atlanta fed do things very helpful and if we look at atlanta, gdp now its. 6 so id like somebody to say why it wasnt so great. It doesnt hold water to begin with. But the surveys are squishy. You reconstitute them. The unploiemployment rate is dropping. If thats the key to our policy and its not real lets reconstitute it to find something that shows a more real view and that Unemployment Rate<\/a> is about a percent higher than our Unemployment Rate<\/a>. Gdp and employment. Conflicting messages. Why is gdp weak but jobs are good . None of it holds water but what are we doing . Instead of tackling the problems were changing the way we look at the data and the way we constitute the data. Just doesnt make sense. John forte back to you. Thanks, rick. Always a clear look at the data. Up next, its been six months since the use of chip credit card readers became a must for retailers. Not only has engagement grown, companies are testing a new thing called selfie pay. Details after this break. 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<\/a> installed on your schedule. Comcast business. Built for business. And a look at the halftime portfolio. Whats working, what isnt and what our experts are doing now. Its been about six months since the start of the emv chip card transition. We want to check in on how the change is adopted by merchants and consumers. Craig is the president of north america markets for mastercard and he is here with us this morning about 67 today. Who is that 33 . Still holding out. I dont know that i classify them as hold outs. This is a complicated and significant transition for our market in the u. S. Its a large market and sophisticated market and a lot of work that needs to take place by parties across the system in order to effect this upgrade of our Payment System<\/a>. Everybody is working through it and were encouraged by the progress in the last six months. In the last six months all of us have been at a store where you have been waiting in line and the check out agent has been trying to explain to the customer how to use the chip terminal and youre looking at your watch and takes a long time. I was at a store the other day where they said why dont you just swipe it. How high is the hurdle still for consumers . Theres a learning curve for sure and we as consumers across the country are going through that but its a learning curve with an important underpinning and its about making the Payment System<\/a> safer for everybody involved. Can i ask a selfish question . Put ago side the issue of learning how to do it, it takes longer. It legitimately takes longer and i just wonder in the great age of efficiency and productive whether theres a two point or three point or 4. 0 version of this where you will put it in and take it out and that will be that. Thats a fair question and i get that question a lot. Theres an element of that i really believe thats an matter of perception. Theres a change in behavior. If you think about a swipe transaction you swipe the card while its processing youre putting the card back in your wallet or in your pocket and purse and starting to gather your things. With the chip transaction you stair at the terminal and wait for it to say now remove your card. Youre not parallel processing. It feels longer. Theres instances where it does take longer. Theres variation in that but i think it will improve overtime as the software gets tightened up but your question about technology is a good one. Theres different ways to define what constitutes better. Safer is better. We havent gotten to the selfie pay thing yet but i want to ask is this going to push us to this . This is faster by far than both other methods but still sometimes theres retailers that dont allow you even if they have an nfc terminal to pay with the method you want but this is just as secure, is it not . It is if its a transaction with tokenization and this is part of a multifaceted effort to secure our Payment System<\/a> our objective is to enable choice for the consumer. We want it to be safe for them. You guys are trying to innovate too. The next time you come in, craig, we want to demo that. Its such a conversation we had. Id love to. Were excited about that. Another leg in the safety story. Always a pleasure. Coming up, peel are camping out at tesla stores for a car that wont start production until late next year. More on that in just a moment. Xerox Predictive Analytics<\/a> help companies provide a better and faster customer experience. Hello mr. Kent. Can i rebook your flight . Im here Customer Care<\/a> can work better. With xerox. Wait im here mr. Kent . gasp shark diving xerox personalized employee portals help Companies Make<\/a> benefits simple and accessible. From anywhere. Hula dancing . Cliff jumping Human Resources<\/a> can work better. With xerox. It begins from the the second were born. Er. Because, healthier doesnt happen all by itself. It needs to be earned every day. Using wellness to keep away illness. And believing a single life can be made better by millions of others. As a Health Services<\/a> and Innovation Company<\/a> optum powers modern healthcare by connecting every part of it. So while the world keeps searching for healthier were here to make healthier happen. Before a movie star unwittingly gave you a global product endorsement. And millions of women everywhere decided, i love that shoe. And the companys data center handled the spike in traffic without any drama. Before all of this. Cdw orchestrated a Scalable Software<\/a> defined Data Center Solution<\/a> using vmware nsx technology. Scalability by vmware. Orchestration by cdw. Reservations for the new model begin today worldwide. People have been lining up for days in anticipation of the new car. Production is scheduled to begin in late 2017 but if you have a cool thousand bucks to part with you can do it now. They think this is like a video game or new movie. These are the people that would be lining up for the iphone se but theyre like its this or the car and theyre going for the car. They have more money than they know what to do with. Yeah. Well keep an eye on that happening later tonight. Andrew thanks as always. Thank you for havin me. Lets send it over to noon on the east coast. Welcome to the halftime report. Why the markets might not be done rallying as a crazy quarter comes to a close. With us for the hour today, joe and josh and pete. What a three months its been for stocks now on track for a 1 gain after falling nearly 10 in the middle of february. The question now, should you stay with the names that have worked or play for a rebound in the ones that have lagged . And that debate begins now. Josh brown, you think you should play the lager","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia601300.us.archive.org\/35\/items\/CNBC_20160331_150000_Squawk_Alley\/CNBC_20160331_150000_Squawk_Alley.thumbs\/CNBC_20160331_150000_Squawk_Alley_000001.jpg"}},"autauthor":{"@type":"Organization"},"author":{"sameAs":"archive.org","name":"archive.org"}}],"coverageEndTime":"20240624T12:35:10+00:00"}