Done . And now i think were finding out theyre going to buy mclaren. And listen, this is a sexy car company that makes highperformance cars, and that makes sense, because they could make a very compelling product with mclarens assets and High Performance and materials. It would be a very big acquisition for them, right . 2, 3, 4 billion, who knows what the price will wind up being. But this is for sure the strongest sign were seeing yet, aside from hiring 1,000 engineers that well see an apple car. How long will it that he . I dont think we see it before three, four, five years. But you know, if you have all those apple stores seeing a beautiful, sexy, p1 type car, hopefully an electric one, not a gas car, would be pretty amazing. And i think people will buy the car. I dont think tesla has anything to worry about. I think this is, again, a four, five, sixyear project, but this certainly starts them on second base. But josh, we had thought that apples ambitions for cars were maybe in the dashboard. It was the software. It was the way that you would actually power the car, not necessarily the body, the steel, the hard assets behind cars. Does this change your view of what apples ambitions in the Auto Industry is . And how much do you think they would prioritize this . Because 2 billion for a company with 200 billion and more in cash is just a drop in the bucket. Well, look, i think apple is in this really interesting position right now that theyve sold, you know, a billionplus iphones, kind of the luxury phone item, and theyre trying to figure out what other luxury type of items thats correct expand to. Car sure seems like one. I, too, thought it would be a software play, providing a different applelike experience when you get into the car. But it certainly makes sense that the focus in design and staying at this very high end of quality would be where theyd want to be. And look, as you said, its sort of a drop in the bucket to them to try to get into a, you know, 1 trillion market like the Auto Industry. The way apple tends to talk about this stuff, it makes me think, having followed the company for a while, that they really, ideally, like to control the entire experience from the store where the car is sold, though we know theres controversy around dealing with dealers, to selling and making the entire car itself. I mean, when you think about what tim cook has really accomplished, just sort of as a businessman and really as a technologist, its the mass production of extremely intricate and powerful Technology Just at a scale that we hadnt seen before as far as consumer products. So, if they can do that with cars as well, theres a huge amount of potential in it. We see these little moves or glimpses of these little moves and think we know whats going on, but it sort of makes sense theyd reorganize a project as it rolls along, if theyre planning to incubate something, then figure out what bigger they need to buy, perhaps. But its one thing to buy a startup and then fold it if it doesnt work out or the project doesnt proceed like apple expected. To buy a company that has a brand like mclaren. You cant mess that up. Sure you can. Well, you shouldnt. Give it time. Give it time. Jason, does it well people are checking teslas price action today to see the level of disappointment, and it has crossed into the red. But i wonder how much people had emotionally invested in the idea that it would be tesla, or will be tesla. Yeah, i mean, i think tesla is probably, when they got those 400,000 preorders for the thirdgeneration car, i think the train left the station. There was no way apple was going to be able to pay a premium on top of teslas stock price, and tesla has escaped velocity now. They have a bigger vision of becoming an Energy Company, from the solar panels to putting the battery packs on and to having the car. Anybody whos been to the gigafactory realizes the ambition level that elon and the team has is much greater than just cars. But you know, apple now is going to become a house of brands. Theyre getting comfortable with the idea, post steve jobs, i think, that they can buy brands and become a steward of the mclaren brand, become a steward of the beats brand. So were going to see a house of brands, and i think thats a great evolution for apple. Because listen, theyre not putting out allstar products anymore. In fact, theyre trying to catch up to samsung and fitbit on their current launch of the iphone 7 and the apple watch 2. So, this is a good choice for them, is to put that huge stack of cash to work buying incredible brands around the world. They were going to buy some watch brands as well, so i think they should put that chip stack to work. And we might starts seeing 10 billion, 20 billion acquisitions from apple, which would help them catch up to facebook, which obviously has no problem spending tens of billions of dollars, and microsoft buying linkedin. This is what apple needs to do, and i think its a great sign for shareholders that theyre getting this bold, if this is in fact happening. Clearly. Lets stick with apple. The eus commissioner fmarguerie spoke with sara eisen about the tax bill. What is the latest . Hi, guys. She was in new york and washington this week to try and defend her case where she has faced a wave of backlash against her ruling a few weeks ago, ordering apple to pay a record 14. 5 billion in back taxes to the Irish Government. Europe says apple got a sweetheart deal and that its unfair, it violates competition rules. Apple, of course, disputes that, as well as ireland. So, i asked margaret vest jaiga about this argument. When you said at one point pay 0. 0005 , a number that tim cook has called political crap. What is your view of that . Well, ive never seen math categorized like that, because we are obliged, of course, to do our case workbased on the facts of the case, not only because it can be appealed and go to court, but also because we have to do a good job. We have to make sure that we get it right and do the right thing. But isnt the heart of the matter really, especially when it comes to apple and these technology companies, the intellectual property of their sales, of iphones and other products, happens all in the united states. It is produced in the united states. So, why should the Irish Government claim the income tax on it . Well, this is for apple. Because we dont question where they book their profits. What we see is that they book a huge portion of their profits in ireland, not in the states. With the apple inc. Of the u. S. , they have this costsharing agreement where they pay every year, some years like 2 billion for the research and development. But the right to use the ip, and therefore also to book the profits, youd find that part of that is in ireland. And that, of course, makes things much more simple, because this is not u. S. Profits. These are profits made in europe, generated in europe, and therefore, i think, obviously, also to be taxed in europe. But arent those fees related to distribution and manufacturing and not intellectual property . Isnt that shouldnt apples earnings on intellectual property be a matter of u. S. Corporate income tax . Well, that you have to discuss with apple, because we were not the ones to organize this. We were not the ones to question how they book their profits. That we take for granted. What we see is that you have these profits which are generated in europe and booked in europe. And in europe, we have a very simple principle, which is that profits should be taxed where profits are generated. By one calculation under your ruling, it would compel apple to pay 40 of irelands Corporate Income tax on a given year. Does that sound right and fair . But i dont think you can make that calculation in any meaningful way, because apple is a huge company. They make huge profits. And thats the ups and downs here. Because the ireland Corporate Tax is very, very low. Its just 12. 5 . So, in that respect, its not a big number, not for any company who generates profits in europe, book them in ireland, and therefore, to be taxed by the irish Corporate Tax. Did you expect ireland to fight this, as they are doing . Well, in my experience, both my own as a commissioner, which is now two years, but also looking back, actually, this is a very common phenomenon, that Member States who have been given out illegal stata would challenge this in court. Also happens with the netherlands and Lux Yum Bourg and belgium. So this is actually very much as expected. Can you see why people look at this and say its politically motivated . Well, sometimes i can understand the feeling, but its very hard to substantiate it, because when you look into the statistics, both when it comes to state aid control, antitrust, you cannot find a u. S. Bias just as well as we do not find a european bias when we see the fine on Deutsche Bank or pnb paribas. Because one of the things we have in common, all the differences taken apart, is that these two unions build under the rule of law, and i think that is the most important thing. I think it was the number that was so eyecatching, because the last time i think that there was a fine from the commission when it came to a tax, it was a german racetrack company and it was 1. 3 billion. This goes way beyond that. Yeah, but the thing is that, actually, its the principle thats the interesting thing here, because the number is an illustration of the fact that apple is a huge, very successful company. Its global. And this is just part of the profits that apple actually do make, being booked, generated and taxed in ireland. Our sara eisen talking to vestager earlier this morning. Were going to continue that conversation. But quickly, we want to check in on scott wapner and get more on this news concerning the s. E. C. , omega and leon cooperman. These are the Insider Trading charges we just learned about 15 minutes or so ago. I did just get off the phone with mr. Cooperman, carl, who told me the following ive spent 50 years developing my reputation in a proper manner. These charges are without merit. We will be vindicated. Mr. Cooperman also told me that the s. E. C. Offered a settlement which he called unacceptable to omega and myself, those words coming from lee cooperman. I do have a letter, a fourpage or so letter theyve just sent out to investors. Ill read quotes directly from it, where mr. Cooperman says we are highly disappointed with the commissions decision to file charges and strongly disagree that the firm or i have engaged in unlawful conduct. We have done nothing improper. We categorically deny the commissions allegations. As weve already said, carl when news of this broke, this surrounds trading in a Company Called atlas pipeline in the summer of 2010. That is where the commission appears to be focused here. But again, omega is sending out this letter and say that none of the trading at issue is indicative of someone trying to position themselves ahead of an anticipated marketmoving announcement or to reap profits from insider information. They say their counsel will vigorously defend us against the commission charges. They have paul weiss working with them, wellknown law firm to many of our viewers. But that is where we are at the current time. Lee cooperman sending out a multipage letter to his investors and telling me directly just moments ago that weve done nothing wrong, we will vigorously fight these charges, and ive spent 50 years building a reputation the proper way. Carl . Scott walker back at hq. We know youll have more details coming up on the half in just about 45 minutes. Thanks so much. Josh and jason, back to apple and the conversation that sara had with vestager about the taxes. How much do they need to worry about these liabilities and the opportunities . I mean, its interesting to hear from the eu on taxes and then on the same day where theyre apparently expressing interest in a british carmaker. You know, were sort of at unprecedented scale right now where these Companies Like apple, you know, let alone google and other ones, are just operating globally with their ip thats generated in one place, where theyre not actually operating physically in all these other countries. And so, i think were starting to see what happens in this kind of new, global, multinational world, where the countries like europe and ireland are starting to go, wait a second, if youre really going to operate here or say that you are, maybe we need to take a closer look. Some of the things we might have promised you a few years ago arent coming true. I think apples going to have a real fight on their hands. Jason, i want your perspective on this. Companies like apple have options on where they invest, on where they go on how they do business. Is the eu really shooting itself in the foot here by going so unilateral in these types of demands . The commissioner kept saying huge, very successful, to describe apple to justify the size of this fine and the taxes they supposedly ought to be paying. Yeah, i mean, this is shenanigans all over the place. If you look, the whole concept of putting your intellectual property through multiple, you know, countries, its shenanigans, right . But its been an established shenanigan that has been accepted. To go back and the eu to look at apples huge pile of cash and start salivating and say, hey, lets retroactively tax them for ten years, its really unfair, right . So, the eu wants to get some profits here, and theyre going to fine google and theyre going to look at these companies that have huge amounts of, you know, war chest of capital, and theyre going to start to extract some of it. And the people this is all part of the trend we see here in the united states, whether its the epipen or wells fargo yesterday, or even Bernie Sanders and donald trump. The people have spoken. They Want Companies to pay their taxes. They want to see the minimum wage go up. And so, were seeing a balancing of consumer interests and corporate interests. And the corporate interests have gotten ahead. This whole double irish tax stuff, it all seemed like a scam to all of us. Its also unfair to retroactivate it. So, i think this is part of the cleanup process. It will probably be a negotiation. Youll probably see a third of a penalty, and going forward, people will pay their taxes. Josh, interestingly, the reason why banks dont disclose the amount of money they have in their reserves is because they dont want that to basically be where regulators start when theyre determining these price tags. Im wondering if you think well see these Companies Stop reporting how much cash they have overseas or within the u. S. , because it has been such a lightning rod issue. Well, i think this is totally right that companies are going to try to figure out how to bury some of these profits as much as they can. Part of the challenge has been we know the incredible Profit Margins that theyre making on these products, what theyre making on their phones, what theyre hopefully going to be able to make on their cars. So, we know all this cash has to hit somewhere. The u. S. Has salivated to get it back and wants it all repatriated, too. I think were right in the middle, as jason called them, shenanigans, to try to figure out how the moneys really going to flow back to where taxes should be paid and where the laws are actually, you know, right to protect this stuff. Josh elman, greylock, jason calacanis, appreciate the insight. We covered a lot of ground. Thank you. Ahead, what to look forward to in the fed decision. Plus, apples car strategy announced it has approached mclaren about a possible acquisition. Were going to break down exactly what that deal might mean. And the cofounder of lyft on his plans for selfdriving cars when squawk alley continues. Images, videos, social updates. We call it dark data. 80 is invisible to most businesses. The ibm cloud has tools that can help see dark data and put it to work. Hello, my name is watson. Working with watson in the ibm cloud, we can help an Energy Company predict pipeline corrosion. And help a startup to use social data to predict market trends. Now businesses can get more out of their data. Thats what the ibm cloud is built for. Now businesses can get more out of their data. Its not just a car. Its your daily retreat. Go ahead, spoil yourself. The es and es hybrid. This is the pursuit of perfection. Hahaha umhmmm hey nikki what are you doing here . You tell me, stephen. What . Im snapping. Youve been streaming my videos all morning. Now youre with this thing . No its not you its verizon they limit my data. I had to choose. Come on, girl. Lets get us a man with unlimited data. Why pay verizon more for data limits . Introducing tmobile one. One price. Unlimited data for everyone. Day two of the feds policy meeting is under way with a looming rate hike decision in focus. So, is the fed ready to make a move . Joining us now is bob mcteer, former dallas fed president and economic adviser to commerce street capital. Our Steve Liesman joins the conversation as well. Bob, ill start with you, because we tend to look for tea leaves in the market on days like this. We are seeing the yields on the twoyear notes policysensitive, rising a little bit. But the dollar index is lower, fed funds futures are chocking up a 20 move. Same assumption its not happening . A week and a half ago, i was pretty sure they were going to move, but since then, all the Economic Data have been bad. We have industrial production, retail sales, the two ism reports, wholesale prices. Its all been contrary to what they would hope for. But the fed speak, steve, had been pushing against that, with so many members of the fed saying in recent weeks that perhaps its better to get this over with. And then you have little brainerd come out with a pretty dovish speech last week and now a lot of people are saying thats the fly in the ointment here. Look, kayla, we all focus on the first line of their statements, but a lot of times we all ignore the second line. The first line is, i think its okay to hike. The second line is, its datadependent. Im right with bob mcteer on his analysis. I thought all the conditions were there for a hike. I even thought the jobs data was enough for the Federal Reserve to hike, but that recent round of data, if you put that in context of a Federal Reserve thats cautious, i think what theyll do is wait to see if the data claired. What i thin