Transcripts For CNBC Squawk Alley 20160415

Good friday morning. John forte is out today but kayla and myself are holding down the fort so to speak. Joining us from washington re codes executive editor kara swisher. Does she have politics in her future . But first up the spt calling on the sec to open up the market for cable boxes. Heres his explanation in an interview with yahoo finance. Its been tied to the provider and you rent it and consumers spend billions of dollars on this every single year and there hasnt been much innovation. Its a great issue. Its a great consumer issue and there hahn been look at those, theyre ugly and second of all theyre expensive. Third of all you don have a choice. I have a lot of boxes i plug into the boxes like an apple tv but it just makes sense. Its like when we used to have to buy the telephone the Telephone Company wanted and it came in white or then it came in white or black or Something Like that. So its a similar situation and a great topic for him. Its perfect for him actually. The blog post from the white house says this is just the mascot for the initiative that they plan to launch asking pretty much every agency to think about how they can get the companies that are in there to innovate more. Is this a new frontier for antitrust . Its a suggestion. Its a forceful suggestion. Were going to do it for you if you dont do it. Theyren the Airline Space of opening up more airlines and things that youre forced to buy and cable box is something that everybody can understand very easily and they pay too much and so its a perfect example of where innovation is and on the other side the Cable Companies will say the googles or the apples and the others in the world or your firemens in tech and the set top box is the control panel for the future and those are one of the reasons its going to be an issue of contention. We see this akined to pharma. Theyll argue the money it takes to create these products, design them and distribute them. How long is the period by which you get to return that investment. Thats going to be the question, right . They do provide the service. The question is should they also provide a box thats substandard . And we can all agree theres been no innovation. They will say its been innovation. But its at their pace. They have done things like voice search. Thats interesting. The guides are better but why should it be one company that decides this . Thats the concept and its clear that Barrack Obama is no friend to the Cable Companies at this point. How much does this add to the cord during cord cutting . Well, you know, thats the question. So many statistics showing millennials dont buy cable at all but they could access these boxes and if they had more innovation in them and apps and gadgets and things they use you could make an argument that they wouldnt do that necessarily but they vn had any innovation. Its pretty much you plug it in and you get television. Theres so much more with a smart tv. And its changed rather dramatically and its everything in the home and thats where the action is right now is the home and thats alarms to your television and entertainment so its an interesting area to do this. Next up, microsoft suing the doj for challenging its use of secrecy orders that prevent them from telling them when they get a warrant to read at the mails. 3600 orders. Yeah. More i think it was like 5,000. The numbers are really quite astonishing. It looks like the government comes in and asks for whatever it wants and a lot of these Tech Companies now after the apple situation are pushing back and were hurrying our consumers, youre searching for things in an open ended way. We need to tell consumers theyre being searched and the argument on the government side or the fbi side for example they know theyre being searched and we want do our searching in quite and its an issue around all of the devices and i dont think facebook is going to get dragged into this in some manner. And by the thousands. I was surprised by the number. I dont know if you were. Im curious whether you raise this issue in a lawsuit until that number reached a Critical Mass or if you think that the relationship between Silicon Valley more broadly is afraid to appoint it. Everybody has been watching that very carefully and before they were looking back around the nsa stuff about two years ago so they tried to join together and there was a lot of disorganization around it and all of them feel like all of these government requests have gotten super for them and theyre becoming random and not clear and they have to tell consumers, who is more porn . Your Internet Company or the government or your Digital Company and the government . Who do you trust more . Its a really interesting situation Going Forward because everything is on digital. All of your information is on digital and now theres going to be a tussle over getting access to it. A lot of people wonder if this is going to reach the fever pitch that am versus fbi reached. Is it going to get that hot . I dont think so. You had a terrorism case and its dramatic and this is more complicated and complex to understand but i think it depends on how microsoft pushes it. If they say look, twitter has the same opinion. Twitter has been very out front and it will be interesting if it sparks public imagination but in general the topic of this, the government and the Internet Companies and access today at a is just a riveting one on all levels. Democracy levels and business levels, government levels, privacy levels. Its going to go on for awhile. Do you think well look back at 2016 as the year that washington and tech finally fell out . I dont know if they fell out. Theres a lot of people in washington that actually do agree with it. I did an interview with ash carter the defense secretary thats for strong encryption and protections so theres even a debate within the government over how this should play out depending on how youre sitting in the government. S going to go on for a long time as we move more and more into digital everything. The internet of everything. Health care and driving. Every single thing. Ive said it a lot. People dont Pay Attention for me and i said it at a gathering the other day again. Ive said it at this event. No one believes me but suddenly everyone believes me and its actually true. Its true carl. I do. I do want to run for mayor. How do you think you would do . I think i would do fantastically. Look if trump can run, come on, tell it like it is. I have the brand that i dont, you know, im not going to insult everyone. Everyone is a winner in the kara swisher administration. Not a loser. And i really do believe in civic duty. You might find it strange but i think its really whats happening in politics now is exciting. No matter what side youre on and i think its really important for citizens to get involved in their government. You cant sit around and complain about government and say everything is wrong. This is wrong and not involve yourself. Theres an old saying my grandma used to say it a lot. If you always do what you always did you always get what you always got. If you continue to sit around and complain youre not going to be the change you want to see in the world. There you have it. 2023 is a ways off. Why not before then . Because the ceo of fox wont let me. No i had breakfast with him this morning. He said we have 8 more years. We have a great business were building in San Francisco where i am an employer and its exciting what were doing right now and well see. I have always wanted to run for Political Office and why not start at the top i say. President was taken. But, you know id be the worst president. What were some of the issues that pushed you to the edge to say this is something that i want to and im going to do. I think reporting on a lot of these economic inequality that we have been doing in re code around tech and the city as we grow between the rich and the poor and especially with tech as the most innovative sector in the country and the city. The fact that theres so much disputing going on among all of the companies which are bringing very exciting innovation at the same time can be very tone daef to the rest of the city and where it is. Thats something that really struck. If anywhere it works it should work in San Francisco. They have to come up with solutions or everybody has to come up with a solution to solve you have been to San Francisco. Theres glaring in equities. You have the street which is are the infrastructure is decaying and our subways and Everything Else and you have the Sales Force Tower going up and linkedin tower going up and there should be Smart Solutions to bring this issue. When youre in San Francisco, it should be to that and then theres fighting almost continually and theres a lot of fresh ideas. It play not be me obviously but a lot of people have to get engaged to figure out the persistent problems that plague lots of cities including San Francisco. Are you able to do any work in advance . Are you able to start well, im hiring you. No, its a long way away. I do find it interesting how fundraising has changed, what Bernie Sanders has done. Theres a real change in how you reach citizens and how you inspire people and im going to be looking at that and study it but im not fundraising tomorrow. Thats Hillary Clinton in San Francisco tonight. She is doing a big fundraiser but no, its quite early, carl, but i know that youre one in the Kitchen Cabinet of course. This is after the yahoo bid. Yeah after we buy yahoo or fix yahoo i could either be ceo of yahoo or do this and i felt this was more attractive. You have some time kara. Kara were going to be watching no matter what. Im going to wear the glasses. Do you know what i mean . Thats the brand. Making San Francisco cool again. Kara, we cant wait to see you again. Thank you for coming on every friday as you do. And quite an auspicious live shot from washington there. Meanwhile, the markets just turned positive for the dow and the s p is down by a fraction of one point and we did see some stabilization out of china and gdp. Consumer sentiment did hit a 7 month low but were trading at a fairly narrow range today. The dow above the flat line. Down to 5 decimal points there. S p up a fraction of a point and nasdaq is up by a fraction of 1 as well. Citi chairs we have been watching them all morning after the earnings beat on the top and the bottom line. They were up more than that but they think the First Quarter will be the worst in that department and shares rallying after going public today of course they tried to go public two years ago stopped by a software glitch. The stock is up nearly 20 . When we come back the most contentious democratic debate so far. What you need to know about hilary versus bernie. Plus its now clear that pretty much no one needs an apple watch. Thats the headline. The author is going to join us live and facebook making a big push on live video as you know at that Developers Conference this week. Well talk with two Companies Work k directly on the new platform when we continue in a moment. Theres a lot of places you never want to see 7. 95. [ beep ] but youll be glad to see it here. Fidelity where smarter investors will always be. If only the signs were as obvious when you trade. Fidelitys active trader pro can help you find smarter entry and exit points and can help protect your potential profits. Fidelity where smarter investors will always be. Great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcasbusiness. Built for business. The fed has for those with assets has driven up prices and asset values but thats not built on anything real. Its not built on an increase in the value of those assets. Its just based on playing games with money which means a crash will be coming. Meantime, cruzs challenger john kasich took a not so direct swipe at senator cruz during an interview with larry kudlow last night. Motorists think if a politicians lips are moving theyre lying. So i can show evidence that what i say i have already done and i can accomplish it again. I move this system down there. And your inferring strongly that senator cruz does not have the leadership skills. He didnt accomplish anything the whole time hes been in. I didnt do this all this time but now all of a sudden, i can do it . Come on. What can we expect come tuesday . Cnbc contributor joins us from washington. 95 delegates at stake. Obviously the rhetoric is getting amped up. How do you think it plays out . Im he has tansitant to say e may need another republican debate. These guys are really going at it. Starting to get personal and i tell you i would love to see like another republican talking about someone like the new its been awhile since we had one and some of the issues that were hearing whether its the living wills or the banks not passing muster. Whether its the great tech issues or encryption or microsoft and the justice department. Theres real issues id love to see debated. Were not going to have that before the New York Primary and as far as the primary goes if it keeps going as it is going which all the candidates keep muddling through, if someone should break out at all then maybe we dont but thats where were headed. Do you think that those issues that you just mentioned mean enough to folks in buffalo, in rochester, and not just the people sitting at desks like these in new york city . Im not sure those are huge new york city but certainly the issue about the banks is a big issue but we still have the big california primary in june where the Technology Issues might be more important and theyre still debating. I would love to see things on the republican side. Jim i was going to ask how you would evaluate or characterize the responses from Corporate America to some of these criticisms . Im thinking mcadam and in terms of what specifically senator sanders has said about executive pay. Listen i know theres a lot of frustration particularly on the ceos that i talk to where its not only about solving problems and not only are they not solving problems in washington, whether its immigration or Corporate Tax reform or other issues but then we have a candidate either directly attacking very successful american corporations or really not talking about any issues. I sense a lot of frustration. Then when you add the tax into it i think that its with what youre hearing from verizon and ge and mark zuckerberg. Well it does seem like nuisance detracks from a candidates popularity. The deeper they go into the weeds the less people on main street like them. Wouldnt you say . I dont like to believe that because i love policy and the battle of ideas but i like to think that ultimately if you have good ideas and you have to explain them to people in ways relationship vanlt and me relevant and meaningful to them that they still have a lot of evidence. And also Foreign Policy and running for president. Whether or not theres immediate impact. Just in the past week they had a lot of big issues from finance technology that they should be addressing in a meaningful way. Explain that whether you agree with Donald Trumps claim that were headed for a massive, massive recession but that he could fix it quickly and then as of this morning senator ted cruzs claim that were about to see a huge crash. I would not listen to republicans when they talk about two issues, one, Monetary Policy or whether or not theres a financial crisis around the corner. Republicans are talking about another financial crisis since 2009 its always like a year away. 18 months away. I dont thk these candidates have any special insights into whether the u. S. Economy is about the class effect. They continue to muddle on at 2 growth. Creating jobs. Still the best advanced economy in the world right now. Donald trump says, you know, china is winning but china has a lot of problems. I would like to see more of what were doing right. Particularly Silicon Valley and some of these other longterm issues like losing u. S. Productive. We have a lot of issues still to come to discuss in this election. Its obviously not over yet but we appreciate your time this morning. You bet, thank you. Got some big news regarding big money for the nba. They just approved the sale of jersey sponsorship. Youll see corporate logo opposite the nike logo for the nba. Its going to start with the 20172018 nba season. All 30 teams the statement says will be responsible for selling their own sponsorships for each particular jersey and remember adam silva, the commissioner of the nba says in the past this type of sponsorship is like manifest destiny. Those are his words. He goes on to say jersey sponsorships provide deeper engagement to partners. I should also point out that on the nbas agenda today they will also be addressing discussing this idea about charlotte and the allstar game scheduled to be played there in 2017 given the recent legislation in the state of North Carolina with regard to lesbian, gay, bisexual, transgender policy. Back over to you guys. All right. Back at headquaters with a news update on the nba. Heading into a big week for tech earnings. Ibm, alphabet, among the big names. Well tell you what to expect in just a moment. The allnew audi a4, with available virtual cockpit. Approaching medicare eligibility . You may think you can put off checking out your Medicare Options until youre sixtyfive, but now is a good time to get the ball rolling. Keep in mind, medicare only covers about eighty percent of part b medical costs. The rest is up to you. Thats where aarp Medicare Supplement insurance plans insured by Unitedhealthcare Insurance Company come in. Like all standardized Medicare Supplement insurance plans, they could help pay some of what medicare doesnt, saving you in outofpocket medical costs. Youve learned that taking informed steps along the way really makes a difference later. Thats what it means to go long™. Call now and request this free decision guide. 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The allnew audi a4, with apple carplay integration. What are the themes and trends that will drive this sector . Josh lipton is live in San Francisco with more. Josh. Well, kayla, tech suffered a tumble to start the year but now that sector has bounced back. Since the market bottom on february 11th, the tech sector of the s p 500 is up more than 15 besting the performance so the question is whether that run can continue and, in part, thats going to depend on next weeks earnings starting with ibm and then intel, yahoo microsoft and alphabet. Market strategists say a few big themes are going to define the sectors performance. Currency head winds could be a factor. The fact that analysts have marked expectations on the companies so heavy after the last earnings season has come back to benefit them now because the dollar has actually fallen so much since the last earnings season. So i do think that the dollar is going to play a heavy part in tech earnings and i would expect that to be a big part of the announcements coming out of the sector in the next several weeks. Now to adams point the u. S. Dollar index, the measure of the dollar versus a basket of foreign currencies is down about 4 year to date. Also china will once again be critical for u. S. Tech firms. Remember last quarter a number of companies from apple to intel sounded more cautious about the Chinese Markets so will we hear that same caution again this quarter. And forecast to generate Earnings Growth of more than 4 what they think the index of a whole is according to facts that well soon find out if Tech Companies when issuing guidance are as optimistic as the analysts that cover them. Back to you. Thank you so much josh. Europe is going to close and put their week to bed in about 30 seconds. Simon is back at post 9 with red arrows. Its been a good week for europe. The stock 600 is up about 3 overall but for the session you can see that were in negative territory. Well just point out that greece is up almost 5 . The banks are rallying back from nothing but in general were in negative territory. Earnings season has kicked off as well. Its notable that the food retailer came through with sales in the First Quarter which has given the stock a little bit of addre respite. Its one of the top gainers today. On the down side, you have a big focus during the course of the week here but its not doing perhaps as well and thats what is interesting in volkswagen which has terrible figures because of the emission scandal and latin america because of the recession has very good sales growth in china. And its travel very well . Another sector thats really moving today is the u. K. Builders now we highlighted them yesterday and theyre under pressure yesterday and construction output and thats because of the looming referendum. And its investment within 22 is the u. K. Wanting folks to exit the european union. Actually today its the official start of that Campaign June 23 as to whether or not people should exit. There you see Prime Minister David Cameron talking to voters for his voter opportunity thoh that may have possibly been last night. The polls still suggest its too close to call. Interestingly president obama will be in the u. K. In london next week. Be very interesting to see what lines he takes on. Many briins believe their special relationship with america is a substitute to the european union. Theyre the source of people that go to orlando on holiday as opposed to those that learn french and spanish as actually go to continental europe. Thank you very much. When we come back, a year after its launch its now clear that pretty much no one needs an apple watch. Thats a headline from a new piece at quarts. The author of that piece is going to join us in a moment. B. And to help you accelerate, weve created a new company. One totally focused on whats next for your business. A True Partnership where people, technology and ideas push everyone forward. Accelerating innovation. Accelerating transformation. Accelerating next. Hewlett packard enterprise. Heres your cnbc news update at this hour. Brazils Supreme Court voting to reject a promotion seeking to block an Impeachment Vote in congress. It lasted through the night and avoided a show down with legislators that want to ouster. Parole is recommended for former Charles Manson follower. She has been a model prisoner since she and the cult killed a man and hi wife. General motors is recalling more than a million pick up trucks worldwide because of faulty seat belts. And it was 69 years today that Jackie Robinson broke the color line in major league baseball. His signed contract from 1947 is on display for a limited time at the New York Historical society. Baseball will honor robinson at all parks today with all players wearing this 42 jersey number. Thats the cnbc news update at this hour. Lets head back to squawk alley. Its been about a year since the launch of the apple watch and despite a slew of App Developers and fashion partners is the tech giant looking at a product flood . He wrote a piece with the headline. A year after its launch its clear that no one needs an apple watch. Mike murphy joins us here at post nine. Its great to have you mike. Welcome. Were both wearing them right now but probably not for the reasons apple hoped. You and i were talking a second ago its a time piece at this point and its a 300 watch that you can do the same function for 30 or 10 and its not probably what they were hoping for with the idea behind the watch. Is that reflect a failure on the part of developers or is it just something indemic to the size of the real estate. How do they fix it . Its hard. You could have made the argument in 2008 that the app store and the iphone, we dont know where its going to go or that sort of thing but you can see that theres a platform where where as the apps that were getting theres nothing that were getting from these apps that are any better than what we can do on our phone. So i dont know if i can put it so much down on the developers more than the platform itself. What can you change about the device itself . Whether it runs on data . Is there anything you can make to make it a little higher demand . I think screen size is okay. Maybe a little bit bigger. It would be nice to be a little bit thinner but i think that samsung has a watch now that runs on data and doesnt have to be tethered to your phone. Something like that might help. You can sort of take it for a run and it still feels very tied to your phone. Maybe if you can build out the functionality or something it might help. You tried to extrapolate what it may mean for apples ability to roll out new categories in general, right . You say that post jobs they really havent invented a category very well. Yeah. That seems to be the case. This is the first major Product Launch that apple has had and, you know, i read an article on quartz the week before this calling apple boring but not in a bad way. I was imlying they found such a good rhythm of pumping out these great products year after year. Were not excited about them in the same ways we have been and the watch was supposed to be the new things to kick things into high gear and im not sure that it has gotten us out of the cycle of iphones yet for that device that everyone needs. The bulls would say iphone 1. 0 wasnt a Game Changing device itself. What would you say . I would agree. That is why they need an apple watch. Not nobody buy an apple watch ever. I think this could just be the start. I still have mine on. I might get the next one if it does something that you look at it and go okay yeah now i get it and for the iphone it was 4g data and the app store and that sort of thing. Im not sure yet what that could be for the watch but its not totally done. We talk a lot about others. Fit bit for example. Others that have a narrower scope and are having some success, we dont think as a category that people are adverse to watches in the future regarding tech. I dont think so. I feel like i heard a few reports that 60 of americans, up to 60 of americans wear watches and if thats the case and apple only sold probably about 10 million of these and they sold 75 million iphones in the last quarter alone, theres definitely some room for growth there and i think that the answer could probably be that, you know, the category is fine. You know, you can use your fit bit for your runs or some other kind of wearables for other activities but yeah with the watch itself, it doesnt seem like its quite there. Yeah. Well well see if they break out the numbers. That would be a big start. But your piece god widely read this week. Congratulations. Up next an up roar after amc said it might let people text in movie theaters. Amcs response in just a moment. N stream it all. Like that Anthony Michael hall movie where he fights with the girl. The one where he gets rejected by the girl. Even stream the one where he creates the girl. With unlimited data, you can stream all the Anthony Michael hall movies you want. I wonder what hes up to these days maybe hes shopping in an at t store . Get unlimited data and your fourth line free when you have at t wireless and directv. Plus, up to 650 in credits to help you switch. Coming up on the Halftime Report crude in the spotlight. Will we see a Production Cut at this weeks new meeting and if we dont, where does oil head from here . Our experts give their top stock picks. But netflix expected to report on monday. Is it simply too expensive here and forget brexit fears. A strategist says now is the time to buy european equities. He will make his case in front of the euro skeptics. Guys back to you. Well see you in a few minutes. Lets get over to chicago with cme group and rick santelli. Thank you, kayla. Theres been a lot of highlights this week but i still think if i wanted to hit japan and the u. S. On the japanese side great article in the wall street journal. Actually an op ed piece talking about japan. Japan is the player to Pay Attention to. Theyre really digging in. Their motto abenomics reminds me of the approaches when infrastructure and stimulus and none of that works because it wasnt enough. We can debate that but lets go to the charts. How much progress do they make . They havent on the stock side or the currency side and theyre creating all of this debt. You keep throwing more wood on the fire. The wood burns out but theres no sustainability there. Its the chinese, the japanese. Lets look at the dollar yen for three years. Absolutely it worked for awhile. The dollar is going up but then what happened . The dollar is going down. Part of the reason has been for this counter intuitive move. Their fiscal year started on april 1st so i started a chart toward the end of march. Just in the last three or four sessions we see the dollar making a come back but it doesnt really seem to fit. Now lets go to the u. S. Side shall we . One of my sources always writes some great stuff. Union bank and im going to read what he started out today in his piece. Factories went on strike in march with production falling. 6 for a second consecutive month. We don want to panic anyone but this falling production trend is what defined a recession. If you recall in january when the markets are going down everybody is talk about recession, recession, recession. Markets go up, nobody is talking about recession. Let me tell you, in the world we live in with stock markets being the beneficiary, much of the policy around the globe, that is not going to give you the signals that it used to. None of the markets are. If you wanted to know about a recession or if the fed waited too long and now they have no insurance against if that happens, it will at some point but what you want to think of is what is going on in production. If you want to monitor whether theyre going up or down you want to look at whats going on with productive and look at production and capacity which as i showed the chart is at the lowest level since the summer of 2010. Kayla back to you. Rick santelli have a great weekend. Meanwhile, stocks were all the rage in 2015 but this year older tech names are giving fang a run for their money. High flying fang. Let me explain, Older Technology companies that were founded before 1990 like sis coe, ibm, and its the older stock names to compare them to last years market. And newer tech stocks. Facebook, amazon, netflix and google. Now alphabet. Now so far this year theyre out performing not just the fang basket but the broader markets too. As of yesterdays close, the fang basket is down year to date by about 1. 5 . The s p 500 is up less than 2 and that great chip basket is leading the way up more than 2 . Now the two old and new baskets went their separate ways and the market fell off early this year. Now it shows that the fang basket may have been repriced by the market to consider that all four names in the fang basket are trading below their one year average forward pe ratio. That may present an opportunity. And agile. When we come back, facebook making a live video push at the Developers Conference. Dont go away. Great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcast business. Built for business. They found out whos been who . Cking into our network. Guess. I dont know, some kids in a basement . You watch too many movies. Who . A Small Business in china. A business . They work nine to five. They take lunch hours. Like a job . Like a job. We tracked them. How did we do that . We have some new guys defending our network. New guys . Well, theyre not that new. Theyve been defending things for a long time. [ digital typewriting ] its not just security. Its defense. Bae systems. The Company Announced new tools like messaging, chat box and a deeper look into its facebook video feature. Today were joined by the companys first partners. He is the ceo of live stream maker, one of the first cameras that will be partners with facebook to live stream and ceo of the daily burn. Guys, welcome. Thank you. Some people watching may have been doing knee lift with you guys this morning why was your company a good fit to see it and say thats something that we need to do. Its long been our vision to create a community of people around the live daily workout experience. Thats what is powerful. Its authentic and real and up until this point with facebook we were able to do define the scenes footage with iphone camera and were actually able to feed our full show into the platform and be where the community is actually taking place so thats the most important thing for us. Why is exercising more popular when its live . First of all you can make it more interactive and engaging and with the trainers and the coaches but i think the distinctive thing is realness. Were all about authenticity and theres something about the nowness of live that matters when youre trying to build a real fitness brand. You guys unveiled that camera at cse this year, did you know that facebook was heading in this direction . Were you producing that type of product . For this even actuality . No, we didnt know that facebook was coming out of the live api. We originally built a camera for our customers to be able to stream their business or performance events but when facebook approached us it was an Obvious Partnership to be had. A lot of people are wondering, for you its great but for average every day facebook users will they be as interested in posting live events as they are at posting photos or videos . Theres Something Special about sharing something in the moment and having that shared experience with your friends and your community and customers and thats still special. Who are you marketing the camera to . Consumers or targeting businesses and content companies . Theres three customers were focused on. Number one is businesses that want content out into the marketplace. Number two is performers. So anything like music or dance and number three is families. Folks love using the camera to film their kids and all three of the groups want to share their content on things like facebook. Users are ten times more hikely to comment on a line event than a video or a photo. Are you seeing that . Yeah. The first time we went on Facebook Live we reached 325,000 people and we had over 70,000 views of the street and on top of that thousands of likes and components so the interactivity is really rear and its different than comments but community isnt hanging out there. Our users are women 25 to 50. Thats where they are participating and sharing together. We all with all that facebook has done well for marketers they criticized that facebook once told them its all about their fan pages and getting likes on their post and the native adds and the native stories. Do you feel like theres still a trial and error element to video as theyre figuring this out . I do think so. I think facebook tends to push the things that theyre actively exploring so photos and video and now wide videos. I think if youre going to be successful you have to embrace whatever theyre doing new and find out a creative way to use it to your advantage. Now nervous are you if youre periscope at this point . Does what happened to merecat happen to them . I think so. Thats likely. Its where our users are already interacting. Our users are typically on facebook. I think youre looking at two very different communities. Periscope is a kmun of folks creating video so you can see the world through their eyes and if you look at the audience size you see 20 to 200 people. Facebook youll see a lot more media companies. Both traditional who are looking to get an audience. When he talks about 300,000 people watching the video on Facebook Live thats like a cable tv audience so its very different. We know that well. Busy week for you guys. We appreciate you guys coming in this morning. Thank you. Up next an up roar after amc said it might let people text in movie theaters. Companys response in just a moment. sintelligent one. The allnew audi a4, with available virtual cockpit. Theres a lot of places you never want to see 7. 95. [ beep ] but youll be glad to see it here. Fidelity where smarter investors will always be. If only the signs were as obvious when you trade. Fidelitys active trader pro can help you find smarter entry and exit points and can help protect your potential profits. Fidelity where smarter investors will always be. Technology moves faster than ever. The allnew audi a4, with apple carplay integration. Amc says its relegating one of its ideas to the cutting room floor in reaction to a social media backlash theyre announcing it will not allow texting during movies. They had been looking to see if they might want texting allowed in a small section of the theaters. You dont have a problem with it it sounds like. No, you put your phone on silent. A lot of people that go to movies already do this. They definitely got themselves caught in a fierce backlash. Meanwhile my favorite stab of the day, no 52 week lows on the nyse yesterday for the First Time Since 2012. Amazing as some of these energy names had finally come off. Lets get back to post 9, simon and the half. Welcome, our top trade this hour, oil in the spotlight. Crude coming under pressure. Oil major producing countries meeting sunday. The burning. I think its important to point