Good morning. Im carl quintanilla. Joining us this morning, New York Times tech reporter and dan fromer. Good morning to both of you. First up we have our eye on politics. Republican president ial candidate donald trump is expected to speak at the Economic Club of new york in just about 30 minutes. Our own john harwood is standing by in manhattan raising the curtain on that. John . Reporter carl, donald trump has been drawing closer to Hillary Clinton in the polls. Republicans have been coming home to him. Thats a positive sign for his campaign. Hes going to try to keep up the momentum here at the waldorfastoria laying out his plan nor the new york Economic Club. His improved performance has been in part by the new Campaign Team hes had imposing greater discipline on his remarks. Hes also revised things that drew criticism like his economic plan. His initial tax plan had been scored by the Tax Foundation as adding 10 trillion to the deficit. Heres the elements of the new plan. Instead of a top rate of 25 , hes going to 33 . This matches the House Republican plan. He retains his top business rate of 15 . Thats both for corporations and for passthroughs, people who file under the individual vote, and the changes in the top personal rates have gotten the cost of his tax plan down to 3 trillion over ten years added to the deficit, originally as i said it was 10 trillion. The other elements of the plan include a temporary freeze on regulations. Hes talked about repealing dodd frank, getting rid of obamacare. A temporary freeze on Maternity Leave. His proposal is for six weeks of paid mandatory Maternity Leave for new mothers financed, according to donald trump, by cuts in the Unemployment Insurance program. He says he can cut fraud out of that program. Donald trump also wants to get rid of International Trade deals and renegotiate them. Nafta, he calls the worst deal in history, the Transpacific Partnership, was on a call with his economic adviser today who said that donald trump is challenging the globalist elite, a lot of whom live in this city, in new york city, who have been in favor of global trade deals for their own benefit. He is doing this in the name of making America Great again and well see if he can sell that argument, guys. Well be looking for that hopefully in about half an hour. Of course when he goes to the lectern well take that live. John harwood in midtown manhattan. The dow is up 100 points, high of the session. Apple is the main stock to watch yet again coming off backtoback days of gains, hitting a ninemonth high today, having the best fourday winning streak since 2009. The company says the initial run of the iphone 7 plus is sold out around the world. Only a limited number of phones will be available for purchase tomorrow. Weve seen the pictures of people in line, dan. Of course you can go in and still order it online, but people are trying to make sense of what this is. Is it a production issue, standard overwhelming demand . I like to say its my least Favorite Computer game trying to select the store for instore reservation. Just dont have any, really. Apple has been straightforward. This is a supply issue. They have to start making new phones from zero and they can only make a certain number of them before its time to start selling them. So it seems like theyve sold as many as they could make and you remember for the past ten years or so, that line outside the apple store doesnt really go away for three weeks. Did you expect jet black would be so popular . Did they have a missed opportunity eliminating that the last couple models . Theyve been doing it every year, gold, rose gold, jet black, everyone speculating ceramic, maybe theyre making a new apple watch out of will be a new iphone color, that could be cool. Obviously the chief design officer is obsessed with materials and really cool product design. So thats part of their marketing plan is to have new colors every year now. This is good news, but it doesnt mean much of anything, because we know that the 7 plus is probably not going to be the most popular size of iphone. Generally the 7 is more popular. The fact theyre running out of the plus, they probably didnt make as many. Plus you have those new dual cameras on it as well. Theyre making that in the phone for the first time. So we dont know if initially theres some difficulty making that work exactly the way that they want it to. Now all that being said, six weeks ago apple was out about 100 bucks a share and its up about 15 from there. So i think the expectations were just so low for the cycle, people saying, oh, they have nothing new, nobodys going to want it, well, somebody wants it at baseline, at least, this looks like a normal iphone cycle. At least normal compared to the 6s cycle, which some people found mildly disappointing and that has become good news, right . I think so. Especially the 6s had to follow the 6, which was massive. Youre right. I think normal, aggressively normal is a good way to describe things right now p. Were working on mike, but im going to ask, hes been harsh on design. I read another post on medium today, the age of apple is over, theyve become the new microsoft. Why do people want to leap to that a year ahead of the 8 . First of all, those people dont really Pay Attention to how apple works. They dont ship radically new designs very often at all. I mean, you know, maybe with the ipod they would have a new design like every three or four years or Something Like that. That was more a function of smaking small dice devices than apple saying it has to look different next year or neebs going to buy it. I have not seen another phone on the market so radically different designed that apple is going, how can we copy that. Give Samsung Credit for the edge, for doing that thing on the edge of the phone. That is unique. So people think they might copy that. My problem with the apple next to microsoft thing, that meme, is that microsoft is actually the next microsoft, and a lot of those people seem to have forgotten what actually happened to microsoft that, you know, they got into legal trouble and were careful about doing certain things, they werent aggressive enough on open source, things like that. Sales focus, culture. They had smartphones way before apple did but didnt think about making them as powerful as a desk top xwuter. Everything in microsoft is were in the going to ruin our Current Business of selling windows in office. Well try these other things, which didnt work out well. And they missed that computers can fit in your pocket, not just your backpack. Best fourday win for apple since 2009 in case youre keeping track. New reports that donald trump wants to nominate paypals cofounder peter thiel to the Supreme Court. According to the huffington post, thiel is telling people trump has made it here he will be selected to fill the open seat. Spokespeople for thiel and the Trump Campaign say there are no truth to the rumors or the reports although its provak tich, the idea of him serving on the nine. Im from chicago so ive heard crazier ideas than that. At least its not the tsa or homeland security. Can we envision just for kick what is kind of justice hed be based on his past speeches and views . Certainly libertarian. Yeah, radical in many ways and this is one of the risks of electing trump, i guess, is having these kinds of moves. Or opportunities. Or opportunities, totally. Our producer points out he has a legal background, went to stanford law school, though he graduated about 25 years ago. He clerked on the 11th circuit, which is alabama, georgia, florida so, politics in that area very different from the bay area. But normally to be appointed to be a justice you have to have been a judge somewhere else. You have to have written an opinion, heard multiple cases, and had that experience. Can you imagine what the first opinion that peter thiel would ever write in his life would be a dissenting opinion on the Supreme Court . First opinion. First amendment, gone. First job, first day on the job. Yeah. It seems like a radical idea. But that is the kind of provocative stuff that this campaign has kind of generated. Is it being talked about out west . I think peter thiels support for trump is seen has unusual. I think its interesting this idea about him on the Supreme Court is being floated. I dont think many people in the valley agree with thiel on basically anything political. But i do think people in the valley want more experience or sort of familiarity with tech on the Supreme Court. I dont think theyd pick thiel, theyd pick someone else, but the idea of having someone who understands tech in sort of the higher levels of government i think theyd go with that. But thiel is not the guy to pick. The thing that smells kind of funny in general i think about in a story like this, a, its showing up in the huffington post, which isnt known for having an inside line into the thoughts of conservatives and republicans. Theres no upside for trump in this story getting out, because, you know, the list of Supreme Court nominees that he put out was full of these conservatives. You know, hes been saying republicans who dont like me have to vote for me because of the people im going to nominate to the Supreme Court. Peter thiel can be a nightmare. A lot of people would much rather have merit garland on the conservative side than peter thiel, who could end up voting for all kinds of things, especially on the socially liberal side that they dont agree with. So i dont know. Well see how that develops over time. It is make or break for twitters live video hopes as the company prepares to live stream its first nfl game tonight. Twitter will stream a total of ten thursday night games in an effort to lure those court cutters onto its service. Nfl not just betting on twitter. The league is expanding content to youtube, snapchat, and sonys playstation. Farhad, i wonder what you think the experience will be like tonight for those who will watch and how it will affect how we judge twitters metrics the next time they report a quarter. Yeah, i mean, i think its a big test for twitter. They have been sort of talking about live events for a long time. And, you know, this is their big live event. They signed these deals. Theyve been talking about it for a while. I think lit come down to the user interface. Weve seen sort of tests of how theyve done live videos. You see the video at the top of the phone and then you see the stream of tweets at the bottom. Its well done, and its a very good experience because its sort of much faster than like loading up a Networks Stream on your phone. It works quickly, it works well. The question is, like, whether you can change User Behavior pap lot of people who watch the nfl arent twitter users, and we want to attract those people and when they come to it, will they see what they like, will it make sense . I think its a big question of whether they can lure, you know, people who arent used to twitter to this new way of watching tv. Dan, this strikes me as a really hard interface problem because i personally would rather see twitter on tv than see tv on twitter. On the small screen. Its like if you care about the nfl kind of but not enough to actually turn on the tv and then tweet. If youve got to see it on the same screen all scrunched together. How do they get around that . I dont know if you remember mtv in the 90s tried this with an aol chat room that was simulcast on the tv. Not super compelling tv or chat. So were going to find out. Obviously the reason theyre doing this is not because they like football, its because they want new people to use twitter and they think that watching a Football Game through twitter will help them use twitter. So im curious what metrics theyre looking for. Are they looking for people to tweet, to sign up for an account, to follow a certain number of or as cramer said, whether or not coke or an heusser are buying advertising. And part of this is to get video advertising more deeply engrained into twitter. Well see. The price was reportedly a bargain of 10 million for ten games. Is it win no matter what for twitter if it raises awareness and gets ad revenue. Ma mayybe marginally. Its a test not so much as with pin. Its a step toward the future if people watch tv on twitter app on their phones or the apps theyre rolling out for tv. I think its a big question whether that will work. Twitter is an unusual service. It appeals to kind of public personas. It appeals to people who are interested in news. And im not sure if it will translate to a much wider audience pip think this is the problem theyve had in trying to fix. Obviously, the nfl has wild appeal so i think theyre riding on that appeal to get twitter to a bunch more people, but i think its still an open question whether, you know, people will actually, like, take to twitter. Yeah. Good point. Well see what happens tonight. Jets versus bills. Finally, tesla is back in the crosshairs this morning. The Company Coming under renewed pressure after a new report suggests its auto pilot is to blame for the death of a driver in china earlier this year. The report includes a dashcam video from the car as it hits a orange truck at highway speeds. When the car approached the truck, it didnt brake or try to avoid it. Couple that with what the chairman is saying about testing limits of safety in this reuters piece. What do you think . Does this add to the pressure or no . Sure. I mean, its never good to have especially video of people, you know, getting into Car Accidents, but how many nonselfdriving Car Accidents have happened since then . Hundreds of thousands, probably. If the longterm bet is that this is going to make getting from here to there dramatically safer, then, you know, thats really what were after, right . I think thats a good point, and i wonder overall, farhad, whether you think the chevy bolt is a bigger op tibs problem for tesla than this auto pilot stuff which you can use or not use. Is it a bigger problem that maybe a traditional automaker could be seen as being just as innovative as tesla at a lower price . Yeah. I dont think its the bolt specifically, but the traditional automakers have noticed tesla has done really well in this segment, that its possible to produce cars, you know, under 40,000 that get longrange electric range as more and more of those Companies Start doing so, and they have these sort of awesome advantages over tesla in production, they can make these cars, tesla can say theyre going to make the cars and say theyre going to be available late next year. If tesla sticks to that schedule, which a lot of analysts wonder about, if they do stick to that schedule and the cars are available and theyre competing with things like the bolt, im sure a lot of people will choose the tesla model 3 over the bolt. But if the model 3 is not available, i think thats the problem for them. Basically the question is whether they can make enough as these other, you know, competitors are available on the market. Yeah, and i would argue the bigger problem is what we saw yesterday in pittsburgh, which is uber providing these selfdriving cars that you dont have to own, that someone else owns. You can call it up, get in the car, get there and leave and dont worry about it. I think the fundamental question, one of them, at least, is car ownership. Are people buying tesla or is uber or google buying fleets of thousands or millions of cars and were not even thinking about the features and all that stuff . A lot of discussion of who wants to be long parking garages in the next 20 years. Indeed. Good to see you both. Farhad, dan frommer, thanks for joining us today. Thanks. Lets get a check on the markets. No fewer than eight economic reports this morning including ppi retail sales, which were soft, philly fed was better but Empire Manufacturing was socht. Despite that, all major averages are up, apple part of the reason for the dow as well as the tech sector being the best performer. Shares of pandora under pressure, the Company Rolling out a new version of its adfree Internet Radio service. Users can replay songs, skip more of them, and listen offl e offline. The cost 4. 99 a month. The Service Called pandora plus replaces the original pandora 1 service, which counts about 4 million paying subscribers. Federal prosecutors reportedly investigating wells fargos sales practices of course led to last weeks 185 million settlement with regulators. According to the reports, u. S. Attorneys offices in manhattan and San Francisco are conducting probes and have sent subpoenas to the bank seeking information. Carl, secretary lew this week asked why there arent more banks pleading guilty, he said its the prosecutors. Were awaiting comments from donald trump at the Economic Club of new york. Informal economic adviser to the Trump Campaign larry kudlow and chairman Austan Goolsbee will join us with a preview. First an exclusive with Andrew Wilson at post nine. Well talk about the latest trends in gaming and technology with the dow up 110. Ats the value of capital . Ats Critical Thinking like . A basketbaosts 14. Whats tm spirit worth . cheers ats it wortto talko your mom whats the value of a lk in the woods . The value capitaiso create, not just wealth,t thing. Rockic plaing] [musictops] [whistle] [rk music playing] [record scrat] announce dont t t e. Col mosh with your fo. An estimat 3,00americans die from a foodborne illness each ye. You cat see