Transcripts For CNBC Squawk Alley 20160420 : vimarsana.com

CNBC Squawk Alley April 20, 2016

Guidance and the intel look, and they say they will layoff 12,000 workers as they are going to be focusing more on the cloud. And they talked about the layoffs in an cnbc exclusive this morning. Have a listen. It is a mixture of the actions to what to do to drive the company in the drirection w want, and how to accelerate the change and growth eareas, and when we did that, it came out to the 12,000ish number. And he also talked about the pc slowdown which is an area where intel does plan to scaleback. The areas that are flat to down are tending to be those mid to lowerlevel system, and both laptops, and degsktop, and it does not mean ta we wont continue to support them or bring in new innovations, but it is just that we will scale that innovation relative to the growth. So we will slow it down, and we will as far as the amount of innovation going into the segments, but we will support them absolutely. And of course, jon fortt brought us that interview in the 7 00 a. M. Hour. And he seems to want the split it in two. And yes, krzanich says that the key word is support. And not invested, but, yeah, we will keep the people buying, but we wont spend a lot expecting the growth out of not just the lowend pc market, but the mid range, and talked about bringing in the innovation, and that means that the once you have had the innovations on the high end devices, it will eventually bring them down, and that is an important shift to affect the hps and the private Companies Like dell, and low novo and a r acer, et cetera, because intel is an important part of the e ecosystem to try to get the cheap pcs to bring the touch screens to the sub 600 for example and also working with the things like cameras and pcs and the marketing dollars, and it is important. Guy, the read through from both the investors and the analysts on wall street seems to be ta that it is an aggressive addressing of the inevitable, and not necessarily pessimistic, and why do you think that is . Well shgs, i think that inte to shift the resources to where the market is going the give it positive feedback, and in a world that is going mobile, you have to shift to mobile. In a sense, intel has to follow that path, and it can also possibly innovate in those areas, and lead the path, but in a state right now, it is reactive. I dont see why it is a big issue, because a lot of companies i would worry about before intel. Do you think that we will see it go the way of hp, and hpe . Is that what we are set up for here . Not at all. But who am i . Im not jim cramer, but it seems with hp, you had the businesses with the printers and the cartridge, and the enterprise software. I mean, i can understand that it is a really big different business, but intel is chips. And i guess that you could go to the cloud stuff, but i dont think that the thee retle cal reason for splitting is nearly as obvious as hp. Interesting, because to me, a lot of the bulls try to drive the narrative guide that they are poised to have a bigger and bigger piece of the iphone, and how much of that can they eventually own . Well, if you think about it back, way back when, it was mote rolo chip and a mcintosh, and we have come a long way from that, and so it seems to me that it would make sense for both company fo companies for the intel to provide the chips for the iphone, because it is a powerful force, and so is intel. Seems like a nobrainer to me. And there is less chance of that now than in years when you see the security battle that apple is in with the u. S. Government and others, and part of apples argument and the security on the iphone is so good, is because they control it from the chip level up through the operating systems, and the applications that they sit on top, and if they were to hand over the chips to intel, it is one more category that the government could potentially get in and compromise the device, and that is not something that apple wants. Apple has the design capability, so it could happen, but it could happen on the wireless radio, but on the application processor, i would not hold my breath. Well, but you know, apple a has the thirdparty chips in the phones, and if you have watched 60 minutes two nights ago, it is not at the chip level that we have problems, right . Yeah. [ laughter ] yeah, that is the story for another time. And meanwhile, the eu says that google is abusing the Competition Laws and giving preferential choice to their app apps, and we talked to marguerite vestager and that is what she said. The thing that is concerning us in some markets android is very, very big, and we have had people coming to us with concerns saying that there is a risk of timing that you can only have the operating system if if you have a full suite of googlele apps, and therefore, it is a oneway street that. We are investigating, and making it a high priority, because these are fastmoving market, and of course, the anti trust has to keep up the momentum with the market as it is moving forward. Once again, guy, we rare asking whether this is an overzealous regulator or deserved in some way or just the cost of doing business around the world . Well, it is almost humorous. I mean, googlele is making the operating system, and it licenses it freely to the manufacturers, and part of the deal is that you have to, you know, make google search, and google apps on there, and the manufactures could go there and write their own operating system, and try to get apple to ios to them, and there are other ways, so i, man, there are other things to worry about in the eu besides googles domination, my god. And this is a big thing to worry about, and the problem is that because android has become so dominant, and some could argue it is monopoly power in certain markets, and that is when you worry, google, because i have to package in your distribution of the an droishgsd and why not take another distribution, and do what amazon has done with fire ios and then package in another app from here or there, and the problem is that once google has that dominance and android, it is too late to do this already. You know, the commissioner was talking about how you want to be fast moving, and it is too late. Say they come down hard on googl google, and they they say, fine, you can install other apps, but people want google apps, so moving on. And this is interesting, because the eu and google is not making the hardware or the device which is what the consumer is choosing, they are not necessarily choosing what is installed on the os once they open it up and press power, but it seems like the that if google were to have used the motorola acquisition, and made their own devices they would have avoided it entirely, because it would have been a totally different Consumer Choice we would have been talking about . Well, if they had sustained the motorola acquisition, then the other enhanced manufacturers would have been complaining that the Division Within motorola has the advantage, because they work for the same system of the operating system, so google cannot win. I dont see it that they are providing value with the operating system, and if you want to use the operating system, this is the deal, and if you dont, dont write your own. What is wrong with that . I love the west coast sort of no worries attitude, guy. And the problem with it is that once you are the consumer, you never got the make the choice, and at the point when andro android became popular you needed ios and the android, and the oem has to have either hundreds of millions of dollars to write their own version of the operating system, and their own mapping map, and the search app, et cetera, or go with googles terms, and the European Union side of the argument would be if you are a european startup with a great idea in search, and mapping something else, you are effective effectively locked out. I dont know if i agree with it, but it is an argument that is valid. And it is the underdog. And once you are the overdog. I dont know if these people actually use an Android Phone . Do they understand how much more flexible android is than ios, and try to make your chrome in ios as changing to firefox or opera, and two guys in a garage and two gals in a garage, are they affected by this . Hardly. If you want a great app, write ios and android app, and it is a beautiful situation, you have two platforms, and two markets. Two guys in a garage, and two gals in a garage are not going to be writing a phone operating system. That is beyond, beyond your wildest dreams. Very nice. Finally, guy. Taylor swift is shedding some local light on the letter to apple in vogue asking what is the bravest thing that you have done, and she said the letter to apple, and the most spontaneous thing that you have done, and again, the apple letter. She has done a couple of commercials for them, and now the sales of the song by drake is up 431 after being featured in one of the commercials, and they say, guy, she is in a Strategic Partnership with the company now, guy . Well, i must at admit that when she sent the letter to apple, it was kind of cute and brave, because apple is obviously a big source of ore income, and i thought it was surprising that apple blinked and changed the policy. But on a historical scale of Human History this brave move doesnt rival what rosa parks or M Martin Luther king did, so lets not rewrite history here too much. And in fairness, the question is the bravest thing that she has ever done and not the bravest thing anyone has ever done. Right. And in american history, and taylor swift has a lot of opportunities, but i am not sure that she has the opportunity to change the course of racial strife in america. And the bravest thing i have ever done is to appear on your sho show. It does take nerve, guy, especially with some of the things that we have thrown at you. Good to see you, guy, as always. Guy kawasaki are joining rus from out west. And current ly the dow up 2 point, and much of the gain is coming from unitedhealth up for a second day in a row after its own earnings, and the dow and the s p 500 and the nasdaq are in positive territory for the week, and that is the third week in four. Coke shares have been falling even as the earnings and the revenues have been beating the estimates, and the stock is down, and big headwinds from the Foreign Exchange yet again, and volumes in the soda category are flat. And meanwhile, dish shares are rallying and beating expectations, but it comes losing 23,000 subscribers and the year over year stock up over 2 . When we come back, big wins for donald trump and Hillary Clinton in the new york primary, and the big question, do the other candidates have the opportunity to take down the front runners . And most attention is on the sell of core businesses. And we will get the future of stream tv, and talk to one company with the backing of streamworks and verizon. We will talk about all of that when squawk alley continues. Democratic frontrunner Hillary Clinton and republican frontrunner donald trump with big wins in new york last night. Lets listen to the kapd date afs the wins. We dont have much of a race anymore based on what i am seeing on television, and senator cruz is just about mathematically eliminated. You know, in this campaign, we have won in every region of the country. From the north to south to the east to the west, but this ones personal. With us now is larry cudler, our contributor, and also our economic adviser. Thank you gentlemen for coming to be with us. It was friendly turf for trumm and clinton back in new york state, but with the leads that each of the candidates poeed last night, is there an era of inevitability for both of them . Well, they are certain ly trying to develop an era of inevitability, and it is more justified for secretary clinton than donald trump. He has taken a big victory and a step closer, but he is not there, and even the most optimistic assessment is that he does not win it until california and it is the last primary, and he has a ways to go. And he has been talking, larry, that it is inevitable for him based on the delegates that he has racked up to this point, and he has said it again last night na if he does not get the nomination, it is because the game is rigged. Well, there is a lot of truth to that. I think it is inevitable, and last night was such a resounding victory that it is a gamechanger, and absolute gamechanger, and even the optimists for trump did not expect 90 delegates, and 60 of the popular vote, and even a dear friend of mine, vin, it is not over until it is over, but the handwriting is on the wall. And two important things, one is process, and one is policy. On the process side, john kasich is out of money, and ted cruz is nearly out of money, and so he is going to have to pick the slots very, very carefully. And kasich took manhattan, and there are deep pockets there in manhattan. Let me interrupt my friend larry. Well, kasich has something that cruz does not have, and there is an argument for kasich, and no one let for cruz. Kasichs argument is simple, larry, he can beat Hillary Clinton, and he is the most qualified for the united states, and what about ted cruz, he united the party and finished third, and there is no more cruz argument, and there is a kasich argument, and he is the alternative to donald trump. You get no argument to me, and kasich and i had a great interview on cnbc and he is terrific, and he would be a great vice president. And this is where this is going to go, and the other point, and this maybe more important, trump and the new people, Paul Manafort and rick wylie and so forth, and he has good professionals turned the tables on cruz in an interesting way regarding this delegate fight. What happened was that cruz became the defender of the establishment, and the status quo, and the Party Regulars by defending what is really f it is not corrupt, it is a ridiculous delegate process that should have been ended years ago, and trump then hooked that on to these are the same guys who have not cut your taxes, had bad trade deals and not protected the border, and so he turned it in a substantive way when ted cruz talks process and has to defend delegates in colorado, he is in trouble, and that hurt cruz a lot. What i would say is that the whole process is messy, but aside from arithmetic, why talking about new york because Bernie Sanders got more votes, and by a couple hundred thousand, and so nobody expects the nominee to win the general in the whoa, whoa, too much agreement here. I want to see that race. Too much . Well, i want to see look, he got half a million votes. And no, no. Look, this notion of a big pot of the working class older male voters who are going to be switching all of the states is a fantasy land, and point here or there, and we wont carry new york or new jersey, but what we will do is to get wiped out with the hispanic voters and the africanamericans, and women, and that is the presidency right the there. A i am not endorsing trump, but just talking to my good friend friend here vin weber. A and he has to start to win women, and now if it could only be republican women. And now, we have a lot of work here to do with the latins there, and now, regarding the white middleincome wage earning workers who have not had a raise in 15 years, trump is a powerful force, and now, i want to make Rudy Giulianis point, and interesting that hillary knows how to beat a dog matic conservative like cruz, and im not yelling at cruz, but for hillary, that is is a fast fall down the middle, and she can knock it out of the park, and donald trump who fights back and has somewhat different positions about how the world works, and this insideroutsider thing is going to be difficult for hillary, and is he going to be winning new york, i dont think so, but he will put new york into play, and put pennsylvania into play, and he is not going to put california into play, because it is too weird out there, and i get that. And he is going to be putting arizona into play, and indiana, and he is not going to be able to unless he can, you can figure out how to improve the numbers with the growing part of the electorate which is hispanics and well, i get it. Well, if he listens to you, i are will e feel better. No, not exactly, but i can get him there. And does he have a cud lowesque trade policy . Yes, a very good growth oriented tax plan which he used effe effectively in the runup to new york, and he did use in wisconsin when he was too busy to attack cruzs wife which is stupid, and i get that. And the unveiling for the wall, and would you be there . I am know iing larry kudlow, an you wont be there he is going to be building the trump tower. And the anecdotes, and you would agree with that . Yes, look. Trump is retooling, and not only the campaign staff, but his own message. And believe me, Paul Manafort is going to keep him on message, believe me. And the message is insider outsider, growth, taxes, jobs, and look, china should play by the rules, and im a free trader, and china should play, and we should have border security, and these are trumps important, and hi ri has nothing. A she cant answer those questions. And he referred to ted cruz as senator, for the first time. Did you see that that is good, a sign of respect. And so far it is deportation, and protectionism, and walls and he has a long way to go to get a cud low message. And now, a terrific message and Supreme Court and terrific spot, and that is all i have, and i have given it my best shot. Okay. The last word. And vin weber and larry kudlow, we appreciate it. Most of the vin tes or th the investors are wondering if the stock of yahoo is going to be sold, and we will talk to Melissa Myers and what she said on the call coming up. My mom loves giving me advice. She even gives me advice. About my toothpaste and mouthwash. But shes a dentist so. I kind of have to listen. She said jen, go pro with crest prohealth advanced. Advance to healthier gums. And stronger teeth from day one. Using crest toothpaste and mouthwash makes my. Whole mouth feel awesome. And my teeth are stronger too. Crestpro health advanced. Is superior to colgate total. In these 5 areas dentists check. This check up . So good. Go pro with crest prohealth advanced. Moms right. Again yahoo shares are in the green after the earnings beat expectation, but the results reminded the investors how much pressure the company is under. Josh lip tton is in san francis with that story. Hey, josh. Well, jon, the ceo paris is a meyer kicked off the Conference Call by saying that the yahoo management has made the auction process for the company a top priority. Our Companies Like<\/a> dell, and low novo and a r acer, et cetera, because intel is an important part of the e ecosystem to try to get the cheap pcs to bring the touch screens to the sub 600 for example and also working with the things like cameras and pcs and the marketing dollars, and it is important. Guy, the read through from both the investors and the analysts on wall street seems to be ta that it is an aggressive addressing of the inevitable, and not necessarily pessimistic, and why do you think that is . Well shgs, i think that inte to shift the resources to where the market is going the give it positive feedback, and in a world that is going mobile, you have to shift to mobile. In a sense, intel has to follow that path, and it can also possibly innovate in those areas, and lead the path, but in a state right now, it is reactive. I dont see why it is a big issue, because a lot of companies i would worry about before intel. Do you think that we will see it go the way of hp, and hpe . Is that what we are set up for here . Not at all. But who am i . Im not jim cramer, but it seems with hp, you had the businesses with the printers and the cartridge, and the enterprise software. I mean, i can understand that it is a really big different business, but intel is chips. And i guess that you could go to the cloud stuff, but i dont think that the thee retle cal reason for splitting is nearly as obvious as hp. Interesting, because to me, a lot of the bulls try to drive the narrative guide that they are poised to have a bigger and bigger piece of the iphone, and how much of that can they eventually own . Well, if you think about it back, way back when, it was mote rolo chip and a mcintosh, and we have come a long way from that, and so it seems to me that it would make sense for both company fo companies for the intel to provide the chips for the iphone, because it is a powerful force, and so is intel. Seems like a nobrainer to me. And there is less chance of that now than in years when you see the security battle that apple is in with the u. S. Government and others, and part of apples argument and the security on the iphone is so good, is because they control it from the chip level up through the operating systems, and the applications that they sit on top, and if they were to hand over the chips to intel, it is one more category that the government could potentially get in and compromise the device, and that is not something that apple wants. Apple has the design capability, so it could happen, but it could happen on the wireless radio, but on the application processor, i would not hold my breath. Well, but you know, apple a has the thirdparty chips in the phones, and if you have watched 60 minutes two nights ago, it is not at the chip level that we have problems, right . Yeah. [ laughter ] yeah, that is the story for another time. And meanwhile, the eu says that google is abusing the Competition Laws<\/a> and giving preferential choice to their app apps, and we talked to marguerite vestager and that is what she said. The thing that is concerning us in some markets android is very, very big, and we have had people coming to us with concerns saying that there is a risk of timing that you can only have the operating system if if you have a full suite of googlele apps, and therefore, it is a oneway street that. We are investigating, and making it a high priority, because these are fastmoving market, and of course, the anti trust has to keep up the momentum with the market as it is moving forward. Once again, guy, we rare asking whether this is an overzealous regulator or deserved in some way or just the cost of doing business around the world . Well, it is almost humorous. I mean, googlele is making the operating system, and it licenses it freely to the manufacturers, and part of the deal is that you have to, you know, make google search, and google apps on there, and the manufactures could go there and write their own operating system, and try to get apple to ios to them, and there are other ways, so i, man, there are other things to worry about in the eu besides googles domination, my god. And this is a big thing to worry about, and the problem is that because android has become so dominant, and some could argue it is monopoly power in certain markets, and that is when you worry, google, because i have to package in your distribution of the an droishgsd and why not take another distribution, and do what amazon has done with fire ios and then package in another app from here or there, and the problem is that once google has that dominance and android, it is too late to do this already. You know, the commissioner was talking about how you want to be fast moving, and it is too late. Say they come down hard on googl google, and they they say, fine, you can install other apps, but people want google apps, so moving on. And this is interesting, because the eu and google is not making the hardware or the device which is what the consumer is choosing, they are not necessarily choosing what is installed on the os once they open it up and press power, but it seems like the that if google were to have used the motorola acquisition, and made their own devices they would have avoided it entirely, because it would have been a totally different Consumer Choice<\/a> we would have been talking about . Well, if they had sustained the motorola acquisition, then the other enhanced manufacturers would have been complaining that the Division Within<\/a> motorola has the advantage, because they work for the same system of the operating system, so google cannot win. I dont see it that they are providing value with the operating system, and if you want to use the operating system, this is the deal, and if you dont, dont write your own. What is wrong with that . I love the west coast sort of no worries attitude, guy. And the problem with it is that once you are the consumer, you never got the make the choice, and at the point when andro android became popular you needed ios and the android, and the oem has to have either hundreds of millions of dollars to write their own version of the operating system, and their own mapping map, and the search app, et cetera, or go with googles terms, and the European Union<\/a> side of the argument would be if you are a european startup with a great idea in search, and mapping something else, you are effective effectively locked out. I dont know if i agree with it, but it is an argument that is valid. And it is the underdog. And once you are the overdog. I dont know if these people actually use an Android Phone<\/a> . Do they understand how much more flexible android is than ios, and try to make your chrome in ios as changing to firefox or opera, and two guys in a garage and two gals in a garage, are they affected by this . Hardly. If you want a great app, write ios and android app, and it is a beautiful situation, you have two platforms, and two markets. Two guys in a garage, and two gals in a garage are not going to be writing a phone operating system. That is beyond, beyond your wildest dreams. Very nice. Finally, guy. Taylor swift is shedding some local light on the letter to apple in vogue asking what is the bravest thing that you have done, and she said the letter to apple, and the most spontaneous thing that you have done, and again, the apple letter. She has done a couple of commercials for them, and now the sales of the song by drake is up 431 after being featured in one of the commercials, and they say, guy, she is in a Strategic Partnership<\/a> with the company now, guy . Well, i must at admit that when she sent the letter to apple, it was kind of cute and brave, because apple is obviously a big source of ore income, and i thought it was surprising that apple blinked and changed the policy. But on a historical scale of Human History<\/a> this brave move doesnt rival what rosa parks or M Martin Luther<\/a> king did, so lets not rewrite history here too much. And in fairness, the question is the bravest thing that she has ever done and not the bravest thing anyone has ever done. Right. And in american history, and taylor swift has a lot of opportunities, but i am not sure that she has the opportunity to change the course of racial strife in america. And the bravest thing i have ever done is to appear on your sho show. It does take nerve, guy, especially with some of the things that we have thrown at you. Good to see you, guy, as always. Guy kawasaki are joining rus from out west. And current ly the dow up 2 point, and much of the gain is coming from unitedhealth up for a second day in a row after its own earnings, and the dow and the s p 500 and the nasdaq are in positive territory for the week, and that is the third week in four. Coke shares have been falling even as the earnings and the revenues have been beating the estimates, and the stock is down, and big headwinds from the Foreign Exchange<\/a> yet again, and volumes in the soda category are flat. And meanwhile, dish shares are rallying and beating expectations, but it comes losing 23,000 subscribers and the year over year stock up over 2 . When we come back, big wins for donald trump and Hillary Clinton<\/a> in the new york primary, and the big question, do the other candidates have the opportunity to take down the front runners . And most attention is on the sell of core businesses. And we will get the future of stream tv, and talk to one company with the backing of streamworks and verizon. We will talk about all of that when squawk alley continues. Democratic frontrunner Hillary Clinton<\/a> and republican frontrunner donald trump with big wins in new york last night. Lets listen to the kapd date afs the wins. We dont have much of a race anymore based on what i am seeing on television, and senator cruz is just about mathematically eliminated. You know, in this campaign, we have won in every region of the country. From the north to south to the east to the west, but this ones personal. With us now is larry cudler, our contributor, and also our economic adviser. Thank you gentlemen for coming to be with us. It was friendly turf for trumm and clinton back in new york state, but with the leads that each of the candidates poeed last night, is there an era of inevitability for both of them . Well, they are certain ly trying to develop an era of inevitability, and it is more justified for secretary clinton than donald trump. He has taken a big victory and a step closer, but he is not there, and even the most optimistic assessment is that he does not win it until california and it is the last primary, and he has a ways to go. And he has been talking, larry, that it is inevitable for him based on the delegates that he has racked up to this point, and he has said it again last night na if he does not get the nomination, it is because the game is rigged. Well, there is a lot of truth to that. I think it is inevitable, and last night was such a resounding victory that it is a gamechanger, and absolute gamechanger, and even the optimists for trump did not expect 90 delegates, and 60 of the popular vote, and even a dear friend of mine, vin, it is not over until it is over, but the handwriting is on the wall. And two important things, one is process, and one is policy. On the process side, john kasich is out of money, and ted cruz is nearly out of money, and so he is going to have to pick the slots very, very carefully. And kasich took manhattan, and there are deep pockets there in manhattan. Let me interrupt my friend larry. Well, kasich has something that cruz does not have, and there is an argument for kasich, and no one let for cruz. Kasichs argument is simple, larry, he can beat Hillary Clinton<\/a>, and he is the most qualified for the united states, and what about ted cruz, he united the party and finished third, and there is no more cruz argument, and there is a kasich argument, and he is the alternative to donald trump. You get no argument to me, and kasich and i had a great interview on cnbc and he is terrific, and he would be a great vice president. And this is where this is going to go, and the other point, and this maybe more important, trump and the new people, Paul Manafort<\/a> and rick wylie and so forth, and he has good professionals turned the tables on cruz in an interesting way regarding this delegate fight. What happened was that cruz became the defender of the establishment, and the status quo, and the Party Regulars<\/a> by defending what is really f it is not corrupt, it is a ridiculous delegate process that should have been ended years ago, and trump then hooked that on to these are the same guys who have not cut your taxes, had bad trade deals and not protected the border, and so he turned it in a substantive way when ted cruz talks process and has to defend delegates in colorado, he is in trouble, and that hurt cruz a lot. What i would say is that the whole process is messy, but aside from arithmetic, why talking about new york because Bernie Sanders<\/a> got more votes, and by a couple hundred thousand, and so nobody expects the nominee to win the general in the whoa, whoa, too much agreement here. I want to see that race. Too much . Well, i want to see look, he got half a million votes. And no, no. Look, this notion of a big pot of the working class older male voters who are going to be switching all of the states is a fantasy land, and point here or there, and we wont carry new york or new jersey, but what we will do is to get wiped out with the hispanic voters and the africanamericans, and women, and that is the presidency right the there. A i am not endorsing trump, but just talking to my good friend friend here vin weber. A and he has to start to win women, and now if it could only be republican women. And now, we have a lot of work here to do with the latins there, and now, regarding the white middleincome wage earning workers who have not had a raise in 15 years, trump is a powerful force, and now, i want to make Rudy Giulianis<\/a> point, and interesting that hillary knows how to beat a dog matic conservative like cruz, and im not yelling at cruz, but for hillary, that is is a fast fall down the middle, and she can knock it out of the park, and donald trump who fights back and has somewhat different positions about how the world works, and this insideroutsider thing is going to be difficult for hillary, and is he going to be winning new york, i dont think so, but he will put new york into play, and put pennsylvania into play, and he is not going to put california into play, because it is too weird out there, and i get that. And he is going to be putting arizona into play, and indiana, and he is not going to be able to unless he can, you can figure out how to improve the numbers with the growing part of the electorate which is hispanics and well, i get it. Well, if he listens to you, i are will e feel better. No, not exactly, but i can get him there. And does he have a cud lowesque trade policy . Yes, a very good growth oriented tax plan which he used effe effectively in the runup to new york, and he did use in wisconsin when he was too busy to attack cruzs wife which is stupid, and i get that. And the unveiling for the wall, and would you be there . I am know iing larry kudlow, an you wont be there he is going to be building the trump tower. And the anecdotes, and you would agree with that . Yes, look. Trump is retooling, and not only the campaign staff, but his own message. And believe me, Paul Manafort<\/a> is going to keep him on message, believe me. And the message is insider outsider, growth, taxes, jobs, and look, china should play by the rules, and im a free trader, and china should play, and we should have border security, and these are trumps important, and hi ri has nothing. A she cant answer those questions. And he referred to ted cruz as senator, for the first time. Did you see that that is good, a sign of respect. And so far it is deportation, and protectionism, and walls and he has a long way to go to get a cud low message. And now, a terrific message and Supreme Court<\/a> and terrific spot, and that is all i have, and i have given it my best shot. Okay. The last word. And vin weber and larry kudlow, we appreciate it. Most of the vin tes or th the investors are wondering if the stock of yahoo is going to be sold, and we will talk to Melissa Myers<\/a> and what she said on the call coming up. My mom loves giving me advice. She even gives me advice. About my toothpaste and mouthwash. But shes a dentist so. I kind of have to listen. She said jen, go pro with crest prohealth advanced. Advance to healthier gums. And stronger teeth from day one. Using crest toothpaste and mouthwash makes my. Whole mouth feel awesome. And my teeth are stronger too. Crestpro health advanced. Is superior to colgate total. In these 5 areas dentists check. This check up . So good. Go pro with crest prohealth advanced. Moms right. Again yahoo shares are in the green after the earnings beat expectation, but the results reminded the investors how much pressure the company is under. Josh lip tton is in san francis with that story. Hey, josh. Well, jon, the ceo paris is a meyer kicked off the Conference Call<\/a> by saying that the yahoo management has made the auction process for the company a top priority. Our Strategic Review<\/a> committee is comprised of directors the and strategic d k directors who are working to achieve the best outcome for our shareholders. The Management Team<\/a> and i have supported the boards process from the start, and we are moving expeditiously. And now for all of the troubles, yahoo s properties are still collectively the third most visited internet sites with more than 200 million unique visitors per month according tocomescore, and that is a lot of people to cross sell products and is services to. And potential bidders are verizon, and private equity term tep and also bain capital and Vista Equity Partners<\/a> and a firm that does have former execs, but how much are the bidders willing to pay seeing the performance in q1 because the net revenue dropped 18 year over year, and the search fell 21 , and the display down 1 , and the growth in mavens, that metric the that yahoo uses to track mobile, and other ads slowing to 7 , and one problem is competition. This year, the e marketer says that yahoo is going to be claim ing less than 2 of the Global Market<\/a> for the online ads, and google is claiming 31 , and facebook at 12 , and despite the performance, investors are focused on the sale, and sun trust exec robert peck says they want to cop collude this auction process by june, and if meyer does not move fast enough, you can expect to see increasing pressure from the activist shareholders and back to you. Thank you, josh lipton out west for us. Europe is about to close in 90 second, and lets look at the green arrows mostly, simon. Well sh, it is certainly no moves. No big moves except perhaps portugal. It is interesting that the banningts have moved higher in the course sof session. Tomorrow is the ecb meeting and the banks are down heavily and some of them have lost onethird or maybe 25 of the value, and you can see that i am assuming the Short Covering<\/a> coming through, but the big banks and not the small ones are noticeably moving in the course of the session, and wu of the other big movers is volz wkswag and por sharks and the Holding Company<\/a> porsche is the deadline in San Francisco<\/a> for the judge to decide whether or not they have come through with sufficient remedies for the hundreds of thousands of vehicles in the country that are on the road and overpolluting. And whether they have a deal there or not, you can see that the stocks are moving high, and on friday the Supervisory Board<\/a> in germany is going to be considering the internal investigation and if it is ready and clawing back some of the bonus payments, but you can see that both of to stocks are rising substantially on the session so far today. And so to brussels, finally, having presumably this morning won the okay of the rest of the European Commission<\/a> there, and you can see the competition commissioner vestier has set out new charges against google saying that they are going to be deny ing other people apps by preinstalling google maps and other apps. They talked to the competitors about what is going owrong with in the market, and in response, the Senior Vice President<\/a> and general counsel says that we take these concerns seriously, and we believe that our Business Model<\/a> keeps the manufacturers coasts low and the flexibility high, and while giving the k consumers unprecedented control of the mobile devices. And potter agreements are voluntary, and you can use any of the apps, and we will be working closer to describe the way we use the model. This is a judgment and no process, because it is interesting that the stock does not move on this, and perhaps that says it all. Back to you. Thank you, simon hobbs with an important update from europe. And meanwhile, the stocks moving to alltime highs, and we will be moving up, will we . Or is a pullback on the horizon . We will have more on that when we come back. Good morning, everybody, sue herera here sh, and here is the update. The Supreme Court<\/a> ruling that 2 billion in frozen iranian assets must be turned over to american f families of People Killed<\/a> in the 1983 bombing of a u. S. Marine corps bombing in beirut. The ruling is deal thing a big setback to the iran central bank. More people were rescued from their flooded homes in houston today. Officials said that more than 240 billion gallons of water fell across that are region e earlier this week, and more than 1,000 homes were flooded and several people have died from the heavy rains. Mitsubishi motors has admitted that it fabricated test data on multiple vehicles. They said that they manipulated the testing methods to make the mileage look better, and they bowed in apology. They were also involved in a coverup 15 years ago. And pope francis is expressing solidaire for those involved in the earthquake in ecuador and asked people to reare new their prayers for those suffering there. That is the cnbc news update for this hour, and back down the squawk al lee. Thank you, sue. The dow is down, but the s p 500 is up to 9. 24 now. And now, to talk about the rally since february, and good to have you back, mike. Well, thank you, carl. People were looking for a 16 gain in the s p 500 and saying what is so great here . We have earnings on the decline, and weak likely First Quarter<\/a> of the gdp in the u. S. And what are we celebrating . Well, you have to are have the context of february. In february, we had gone down from this level in the s p 500 to about 1,800, and just above 1,800 in nine weeks about. And so you are basically pricing in the commodity and credit contagion and likely the u. S. Recession or possible one, and some kind of a disorderly devaluation of the chinese currency, and so essentially a big money position for bad thing, and lot of the things didnt material iize, and we ha the commodityrelated stocks partially leading the way higher as well as yield stocks, and of course, the yields have main tand the dollar stop going up, and these things undid the fears of february. You make a rally that it is led by the industrial linked stock, and i wonder if you think that it is canceling out the lost value, and whether it is true fundamental underlying strength. And now it is a unwind of the selloff, and people landing in the hardline of china, and people on the 2100 of the s p 500 we approach the level for the first time of december of 2014 and not as if we are on the doorstep of the alltime highs, and we have somehow decided to go up, up, and away, and have a powerful recovery here. And one idea about the breadth if it is higher or narrower, and. And this rally is unusually broad in terms of the number of stocks participating with a new high on the New York Stock Exchange<\/a> advance decline line and that does not mean that we have momentum to continue higher, but it usually insulates the market from putting in a important top or the washout on the next pullback. Of course sh, the pullback is a question of when and not if. It is a pretty logical that it could happen kind of soon. You are starting to see some of the short term sentiments of the the traders speculating in options and things like that the starting to get a little bit giddy, but nothing too alarming e yet. And people back in february, they were saying if only the buyback window would open, and nobody is saying, what happens upon closure . Exactly. And will people graspp that one identifiable factor that seems like it is the key to everything . And buybacks were never as important as we made them out to be, and of course, when you are sitting there saying who in his or her right mind choose to buy stocks out there, then you have to say, well, there is a mechanical buyer with companies that is going to be coming and going as it pleases. And is some of the stocks have been quiet havens for the yield, and you tweeted this morning about the intel, cisco, and ibm and the stocks are yielding more than the tenyear bonds right now, and you did ask whether the tech cigar butts can continue to burn. More than than oir own bonds, because intel debt is more than the 10year yields now, and this is upside down, and cisco and ibm as well. And so does the bond market have a right to think that the companies are there forever and financial flush or is the stock market not willing to make that bet . It is interesting, because you have investors willing to pay up for other yield stock, and look at cocacola here today down 4 , showing you that people thought that they were buying the pure yield vehicle, and then an okay market, and the people will take 4 out of it in a hur ru, and this is by the way more than one years worth of dividends. And you look at ibm, and they are cutting overseas so that is going to help the bottom line, and maybe the investors will forgive a lack of revenue growth, and the same with intel growth, and intel is up today on the news that they are willing to pull the right levers, but how long does it last . Well, it does not last very long and it does not provide a lot of fuel for the upside in the stocks, but if you talk about trading water, john, you can look at the years closing levels is 2001, so it has been treading long time, and compounding the dividends and staying afloat, and plowing 10 billion a year in r d, and fighting the industry trends, and so the yield is up here not because it is a generous payer of the dividend, but it is because the stock was knocked down and the yield went up. And going into the summer, the brexit vote, and brazil, who knows, and the election, and rate hike in june, and is this the ultimate . Well, the market is not assuming june, but possibility in june. And socalled live. And is this the socalled ultimate sell in may . Well, it is probably in may, and in election years, april is a good time to back away from the market a little bit and im not big on the election cycles, but it does make sense that is when you have a election and no incumbent running, and it is a little bit more of the crap shoot. All right. We heard it here. It is going to be eventful summer. It is looking that way. And even though people are selling, we should come in that way. And therefore we should hope it is an eventualful summer. And thank you, mike. Coke shares are continuing to fall down 4 to 4. 5 , and the worst performer on the dow, and first, rick santelli, what are you watching today . Well, you know, we are watching the postmortem of the argentine massive 16. 5 trillion debt issuance, and not only was it an amazing issue in terms of the size for the emerging market, but defaulted what 15 years ago, but whats more, investor love, and they were tripping over themselves to buy. Why . We will talk about those reasons after the break. The bank on yourself revolution. Over the last 25 years, ive researched more than 450 financial products. I found that one of the bestkept secrets to help you plan for your retirement is the home equity conversion mortgage. Its a line of credit for homeowners age 62 or older. And its offered by a company you can trust one reverse mortgage, a quicken loans company call one reverse mortgage now to get the details. Their licensed experts will tell you if youre eligible, show you the line of credit amount you qualify for, and will send you a free information kit. The home equity conversion mortgage line of credit is even better than a traditional line of credit. Because you can make payments if youd like, but no monthly mortgage payments are required; this program is government insured; and the money available to you increases every year. For example, if your 100,000 dollar line of credit remains untouched, it could increase to 300,000 or more, years later. So the sooner you start your line of credit, the more money you could have access to in the future. Ive educated thousands of Financial Planners<\/a> many are including the home equity conversion line of credit in their clients Retirement Plan<\/a>s. While this product is good if you need financial help now, its even better if you want to strengthen your Retirement Plan<\/a> for later. It offers a wide range of flexibility for every homeowner age 62 or older. I believe this is a Smart Financial<\/a> tool and i recommend that every homeowner who qualifies consider getting one now. Call one reverse mortgage right now to get the details, find out if you qualify and get your free information kit. Coming up, we will look at intel and if is it a value buy or value trap . And we will have a look at what happens now, and a watch that costs half a million. And we have it in about 15. Thank you, scott. And now, hopping over to the cme with rick to get the exchange. And you know, we all kind of like junk food and tastes great and kind of empty calories and over time, it may give you Health Issues<\/a> and the same for the low credit paper. Now, yesterday argentina had a deal, and the fact that they defaulted not that long ago, hey, russia defaulted in the 90s and it did not mean that a new political regime, and more centerminded and businessminded could not pull it off, and they did, and my hat is off to the them. And how aggressive and successful was it . Well, consider this, every other week i do auctions, 2s, 3s, 10s, 7s, 30s, and one of the main dynamics that i concentrate on to grade the demand of investor s at government auctions is the bid to cover. Very simple, you take the amount of securities available for sale, and in this case, 16. 5 billion and you divide it by the amount, excuse me the other way, take 70 billion where the total amount of bids submitted by 16. 5 for sale, and you have a bid to cover at 2. 24, and i cant imagine how many times i haved ha a handle on 4s in the auction, and most of them in the 2s and so you get the point. To assess the demand, you want to know how many people are in the lean for whatever it s is t you are selling. The fact that this is so successful really makes my, i dont know, it makes me question some of the dynamics that we have in the investment infrastructure. Lets consider this. As the wallt street journal pointed out today when they were writing about this deal, it is that there are 6. 9 trillion of negative yielding paper out there. All right. We know that normalization is difficult if not impossible for our central bank, and forget about the japanese and the europeans, and i just dont know how they could pull it off. You know, whether it is politic s or the markets, there isnt a switch. Okay. After this election for example, there is not going to be a switch where we all go back to the way we were feeling after this wild election scenario that we have been experiencing, and the country has changed. The structure of the markets and finance has changed. Negative yields have changed everything. That is what makes this deal positive, and in many ways what you are seeing now are central bankers are the new matchmakers for investor dollars, and now, how will it turn out, and im not sure, but i will tell you one thing for sure in the here and now, getting these juicy yields is just ultimately tasty for investors, and when you add in that they can buy this because they all bought it, and they are all indexed, and if it sinks or swims, they sort of sink or swim together, but in the end, this is an important lesson, because the investors are going to continue to choose more risky investments as long as the central bankers continue to push the lower and more negative yields, and it is a selffulfilling loop, and it cannot simply end, and this is the way i am going to end this. Kayla, back to you. Than you, rick santelli. The future of tv is in streaming and verizon thinks so taking a 25 stake in the next guests company, and that guest is going to join us next when we come back live. You shouldnt have to go far to get the help youre looking for. Thats why at xfinity were opening up more stores closer to you. Where you can use all of our latest products and technology. And find out how to get the most out of your service. So when you get home, all you have to do is enjoy it. Were doing everything we can to give you the best experience possible. Because we should fit into your life. Not the other way around. Our next company was acquired in the 2013 by dreamworks and struck a deal with verizon, and giving the carrier a 25 stake in the bid to create a mobile video service, an awesomeness of the started as Youtube Channel<\/a>, and encouraged people to create films and shows, and we are j n joined by the ceo of awesomeness tv. Brian, thank you for being with us. Good morning. So what is the end game here is what i wonder, in the fully developed state, and evolved from the Youtube Channel<\/a> to what you are now, and what is awesomeness of the . Is it like what awesomeness tv . Is it just same tv only delivered over a different pipe . Yes, if you look at the evolution of cable television, right, and you think about digital video, you know, when the cable first came around, you had all of the brands that start started, and it was public access, and then they ran reruns of the sitcoms, and digital video, the evolution of that started with the cats on the skateboard and then got to, you know, more professional user generated content, and then the Companies Like<\/a> ours came around, and had more premium content, and what you are seeing happening now is that big brands are being built on the back of this new distribution system, and just like in the early days of cable and espn and mtv and cnn were born, so it is the end game for us, and building the brand of awesomeness. And brian, a lot of parallels with the environment the today, and the early days off cable when it has been said that the executives did not Pay Attention<\/a> at all to what they put on the air, and assuming that the scale would bring the viewers first and only later did the big brands come, and is that where you are . Truly. I mean for us, we believe that in order to build the brand, the content builds the brand, and we are making content for the audience that i think is truly underserved, and this genz audience, and they are the early adopters of technology, and so when we started awesomeness, the half of the mobile views were on mobile devices, and now today, it is 90 . And how hard to reach the generation z, because we got the point where we started to understand the me lineals and 12yearolds would be watching nickelodeon and a 14yearold would watch something racier, and how do you program for that audience . Well, it is always aspirational, right . When i was making shows for nickelodeon, i programd half of the primetime lineup, and you never aimed for the 12yearold, but a 16 or 18yearold, and that is the sweet spot for us. But, it is a tough audience to reach. I always say to the brand in advertising and part nrs that if you want to reach my kids who are 16 and 18, you have to drive to my house, and hop over the fence and ring the bell, and hope they answer the phone, because they are truly hard to reach. They dont watch the traditional television. They dont listen to traditional radio, and even twhaen i are driving in the car with me, they are like this with my phones, and they dont see the outdoor billboards, and so they are a tough audience to get to, and we have managed to get to them, because we have been working with the creators and the stars that are interesting to them, and the programming that is made for them. And how do you measure success . What are the metrics that you are looking at whether it is engagement in time or watching the video or how often your audience returns, and catches on to different shows, and can you give me a flavor for thet metrics of the success right now . Well, we actually, you know, are there is a lot of different metrics that we look at, and obviously, the views are one of themmers and we look at watchtime, and the most important thing for us, and because we are building the brand, you know, on youtube where could favorite it or comment or like, but if you share a piece of content, and sharing a video, to us, that is the highest form of engagement, and that means that you must really like something, and that is a very, very important metric. But, here is the thing, that everybody is measuring data, right . Edadvertisers are looking for t data and the networks are looking at the data, and, you know, they are all trying to the sort of follow and track the audience, but the big question is, and the question that we look at is once you find the audience, you better know how the tell a good story, and that is what we are really concentrating on everyday. Still comes down to the good story and good content, brian robbins, ceo of awesomenesstv, thank you. Thank you. And when we come back, plenty of tech earnings to look at, qualcomm after the bell, and the Google Parent Company<\/a> alphabet coming out tomorrow, and with will tell you what to look for tomorrow. Alibaba chairman jack ma sitting down with the south china post before taking over the paper and he said that chinas growth is going to remain quote enviable for other economies for another 15 to 20 years ark and he said it is unrealistic to expect doubledigit growth indefinitely, and he said no reason to expect in an e kconom of such size can continue to grow at such speed. He said that china is like a oceanliner, and to make a turn, you have to slow down to do it. And alibaba shares are up today after those comments. And yes, on the worries that the Central Banks<\/a> have reached a point to where they dont have to accommodate as much. It is always good to get mas point of view though. Yes, it is. And we mentioned the tech earnings are on the way, and what are you most interested in, qualcomm or alphabet . Qualcomm, because it is going the answer the questions of the end user devices, and qualcomm with chinese licensing, but they are answering those issue, and what that signals about in demand, and then of course, you have to look forward to the microsoft as well, and how much of the pc adjustment that intel is making has microsoft already made . It is a little bit more in the Cloud Software<\/a> and the service game than intel is, and do they have enough hedges that they dont have to make the big cost adjust mements that intel is making. Also, American Express<\/a> is going to be reporting after the bell, and they and goldman are the two worst performers there, and what is the transformation and can they plug the costco hold. We will watch that. And the dow is sitting 1 of all the alltime closing highs, a and little bit more than the alltime intraday u highs, and we are up almost 14 point, and so we will go back to the headquarters to scott wapner and the half. Carl, thank you so much. Welcome to the halftime report. Im scott wapner and the trade this hour is good value or the value traps . That is the with question for the investors with the banks and intel reporting weak earnings. And joining us now is the panel, and we want to kick it off with a host of old techs laying the big egg this week. There they are, and i want to show you the market reversal which is happening as we come up on the hour this hour, and the major averages are moving higher, and oil is reversed and what have you made of this steve","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia800300.us.archive.org\/16\/items\/CNBC_20160420_150000_Squawk_Alley\/CNBC_20160420_150000_Squawk_Alley.thumbs\/CNBC_20160420_150000_Squawk_Alley_000001.jpg"}},"autauthor":{"@type":"Organization"},"author":{"sameAs":"archive.org","name":"archive.org"}}],"coverageEndTime":"20240624T12:35:10+00:00"}

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