John ford and myself, kayla has the morning off. We are less than ten hours away from the first president ial debate between Hillary Clinton and donald trump. The candidates facing off at Hofstra University 9 00 tonight. In what is expected to be the most watched president ial debate in history. Lets bring in head of Public Policy and chief political strategist and wormer george w. Bush senior aide. Good to see you both. Good morning. Good morning, thank you. I know you did work on this what each candidate needs to do, walk us through some of that and characterize the degree to which the market is now invested in all things political. Well, certainly if you look at both candidates, they have very specific tasks tonight. Hillary clinton has to raise her game in terms of having people have more confidence in her ability to lead and to be the safe pick, and donald trump has to be more president ial, and i think those are the two primary tasks before both candidates. The markets are going to watch this debate closely. You could see some movement in the markets tomorrow if theres a big flip, if theres a big clear winner, especially if its trump. We could see the markets move. I think the markets still favor clinton at this point, but they know its going to be a very, very close race. Sir, in terms of specifics, what are you going to be looking for, listening for, economic policiwise . The big moments in these debates dont tend to be that substantial. They can often be style based, but are there specific things that youre listening for . Well, i think for donald trump its a real opportunity to put some specificity around his plans, and the one area of differentiation between these candidates, theres many, but the one area where the two candidates have competing plans are on taxes and the economy, and so this is a Good Opportunity for him to really drill down on his Corporate Tax relief plan, his individual tax relief plan, and talk about how he will get the economy moving. Our own larry kudlow points to a potential 5 growth with this kind of bold economic plan. Its an opportunity for donald trump to put Hillary Clinton on her heels, which is most economists say if you look at what shes proposing, its essentially status quo, its more of what weve seen, which has been weak Economic Growth in this country. Its an opportunity for him to really speak to his weakness, which is to say i do have command of Economic Policy and policy generally, and i have a plan thats going to put people to work. Its not an understatement to say this is a very big night for donald trump. John, the way sarah puts it, makes you wonder who exactly is playing defense tonight. Do you have a call on that . Well, i think both are playing defense in very significant ways. I think sarahs right, the debate format is wide open, so both candidates will have ample opportunity to outline their different policy prescriptions, but i think in each answer youll see a policy answer followed by a personal attack on one of the many vulnerabilities that both candidates have. So i think if viewers are expecting a Lincoln Douglas debate over policy, they may be disappointed. I think it will resemble more of a cage fight, and im not sure to what degree we will get into the policy details. I think both candidates are on major defense tonight. Sarah, what kind of a beating is globalization going to take tonight, and are the markets going to react, do you think . I think that we will see a significant discussion over china and mexico and youll see Hillary Clinton really try to bring Foreign Policy into these discussions because its an area where she is perceived to be stronger than donald trump. Specifically around china and mexico, and she will point to not his policies in these regards, his economic policies, but shes come closer than donald trump on trade than certainly where she had been most of her career during this campaign. Shell attack him on his commentary on the way hes talked about illegal immigrants. She will attack him on many of the ways in which he is bold when he talks about Foreign Affairs and dealing with china and other nations. Shes going to try to make that a weakness, his approach, not his substance. Because hes on his substance, the American Public is more in line with donald trump than Hillary Clinton, and she knows it, so shes going to attack him personally. And we can talk about policy a lot, guys, but john im looking over your research, you actually have a section covering the degree to which she needs to appear not sick. Why was that important enough to put in your written work . Well, i think theres a perception out there that she is faced with health challenges. I think that people dont know the facts. She may be sick, she may not be. I dont personally know, but i think any sign of any kind of Health Vulnerability will raise that issue as a serious issue for the rest of the campaign. The issue has subsided over the last week or so, but it will roar back to life if you see her engaged in coughing or in anything that suggests that she may not be as well as you would want your commander in chief to be. And, sarah, to what degree do you expect what we would think of as intangibles like that to play into this debate, whether someone coughs, whether, i dont know, theres a hug or a handshake, things like that . Theyll be overanalyzed, for sure, regardless of what happens, but i think what happens, you know, for these candidates having seen this up close and personal in the past is these types of things get in your head, so if youre Hillary Clinton you think i cant cough, i cant cough, i cant cough. Well, having a cough isnt a big deal in a 90minute debate, but it gets in your head and becomes a bigger problem than it actually is. For donald trump i think stylistically its going to be the interaction with a female, and theres no history, given the fact that Hillary Clintons the first woman to be a major party nominee, is how does he engage with her. Youre right, does he shake her hand, does he hug her, does he get in her space . I suspect the trump team has fought through that very carefully and he will be very in command in terms of how his inner personal dynamic is with mrs. Clinton. Really quickly, sarah, your exboss hasnt said who hes backing, although his father has. Have you . Have i personally . You know, im a lot like ed rogers earlier in your show, i want to believe that donald trump is going to be a great commander in chief. Ive seen some troubling, you know, commentary in the past, but im very opposed to Hillary Clinton. I think four more years of what weve seen out of the Obama Administration is very troubling for this country, and given her long history of being dishonest and untruthful, i dont think americans deserve that, and donald trump has an opportunity tonight to win a lot of republicans who are sitting on the sidelines right now watching over. Big night for him. Sarah, were going to watch, obviously, closely. Appreciate you helping us raise the curtain. John savercool and sarah joining us. You can catch the coverage on cnbc. Stick around for the post debate analysis here on cnbc, first in business worldwide. Breaking news on mylan happening right now. Lets get to meg at hq. Mylan saying its clarifying the epipen profit figures its provided to congress. This according to dow jones, saying epipens pretax profits are 60 higher than it told congress, it calculated the profits by including taxes, it now says its providing more detailed calculations to congress. Mylan down almost 1 . Again, mylan saying its clarifying the pretax profits on the epipen. Bring you anymore news on that. Thank you for that. That story continues. When we come back, as ad week kicks off in new york city, facebook is still feeling the heat over what some of calling inflategate. Media link ceo is joining us, hell weigh in next. Plus, shares of twitter under pressure after fridays wild ride. And google glass may have been a flop, but thats not stopping snapchat from releasing its own pair of smart spectacles. Later on, rokus anthony wood, brand new product at a brand new price point. Squawk alley continues in just a moment. eeeeohmumohweh hush my darling. dont fear my darling. the lion sleeps tonight. hush my darling. man snoring dont fear my darling. the lion sleeps tonight. woman snoring take the roar out of snore. Yet another innovation only at a sleep number store. smash like an administrativeyou dont assistant. Dustrial strength your 3 oclock is here. But theres one thing you do. Its called predix from ge. The cloudbased Development Platform thats industrialstrength strength joining us from palo alto, and our own julia live from ad week here in new york. Good morning, guys. Good morning. Lets talk twitter first. Under pressure, analysts downgrading the stock to underperform to perform. Saying the company is going to have a hard time fetching a sale price above 17. Thats their target. That follows our own david fabers reporting friday the company is moving closer to a sale, seeing interest. Josh, they do go through a bunch of metrics, engagement, new mobile uniques and thats just arguing thats not worth 20 times. Is that the common view . You know, i think its a real question right now where twitter is going to find new growth and usage. Theres a hope the push towards live, the video content, nfl, the debates with this great commentary alongside it are going to bring a lot more people into the platform, but its still an open question. Julia, is there where twitters growth problems start to catch up to revenue . Whats the discussion at ad week going to be like around twitters potential as a platform from here . Well, i think the real question is advertisers have other places to go. Twitter is really staking its future growth on this issue of live streaming, and i think theres going to be a lot of interest to see what happens not just with the nfl live streaming, but all the other sports deals they have coming up, and the question is, when you have so many options right now, you have facebook, you have google, who are the two behemoths in the space and snapchat, where do you want to put your ad dollars. Twitter, if its not growing its core user base, is that somewhere thats going to really be able to scale its ad dollars . And josh, i wonder about snapchat, so weve got the news of spectacles out this morning. To me it doesnt seem like this is necessarily a big risk for them, because they are not trying to crank out a million of these things and get an inventory problem on their hands, but what is your take, what could go right for snapchat coming out with hardware at a time like this . You know, i think snapchat is pushing the edges of what a camera is, this idea of actually sharing what youre seeing directly from your eyes, something thats fun, feels like a toy, might be a breakout hit this Holiday Season or early next year. I think their brand is so strong with, you know, people in their early 20s that they might sell a lot more of these than anybodys predicting. Julia, first what makes you so confident it will be well received . The price point we were just talking about at 129 feels a little bit rich for the kind of audience youre describing. You know, its a little bit think of how much sunglasses usually cost. Sorry, go ahead. I was just going to say, it does feel a little bit rich, but these kids buy branded sunglasses, branded clothes, feels more like a fashion thing and they are positioning it as a fun toy for people to engage with, not something that you need to think about as your next Big Technology investment. I think well see a lot more sold. Julia, your take on not just the hardware, but the name change and to some degree the growth they are posting versus their rivals . Yeah, its a big change, carl. What they are saying with this announcement is they are changing their name. They are not just snapchat, they are snap inc. That indicates a portfolio product, they are going to keep senate chat, also introduce things like these spectacles and implication is very clearly they are going to be more other products to come. So i think theres going to be a lot of interest from millennials in these sunglasses and i think they are going to be in high demand because there arent going to be that many of them and millennials love that snapchat brand, so snapchat is innovating and allowing brands to get in front of consumers in so many different ways right now that i think well probably see a lot of interest from advertisers here at ad week trying to figure out how they could get on top of the videos that people are going to be shooting. Of course, there might be some privacy issues if youre able to shoot Everything Everywhere you go through your sunglasses and people dont necessarily realize it, but certainly will be an interesting time when it comes to video moving forward. All right, and josh, i wonder, is this about marketing as much as its about product . Julia says a lot of kids are going to want to get their hands on these, they are going to make them in only limited quantities. Is it possible that this is just looking to drive video and interest in snap and snapchat more than its about selling hardware . No, i actually think its beginning of a much broader set of things were going to see from snap. I think the ability to change how people think of the camera, its not just something you hold and shoot, you take out of your pocket or out of a case, but right there with you all the time. Snapchats wanting to be the default camera on your phone for a long time and now this extends their ambitions. Well probably see more, even after a go pro type market. John, we talk so much about the ad rates they are able to charge for selfie lenses. Seems it might be hard to take a selfie with the camera facing out. Thats true, get a lot of eyebrow. Finally, yahoo reeling from the massive hack attack, 500 million accounts compromised. No word on whether or not the cyber breach will compromise its 4. 8 billion deal to sell core assets to verizon, although aols ceo did comment on that deal earlier today on squawk. One of the terms of the contract is there were no data breaches, and i guess contractually are you allowed to go back . What does the contract say . I think on both sides the contract has very good protections just in terms of, you know, going through that type of a process on a sale prorksz so i would say, look, theres incredibly smart people on both sides. Our interest level is protecting consumers, protecting verizon share holders, making sure yahoo if the deal goes through, we have a great relationship with yahoo and were at such an early stage on this that i think if anything, we comment on anything right now, a, it wouldnt be accurate, and, b, its a case where its a cause for methodical walk through. Calmer heads. Yes. Julia, you know tim, and you know the company. He had to know he was going to get asked that question today. When you heard that, what tea leaves did you read . Well, look, we asked him that question several times in many different ways. Are you interested in getting out of this yahoo acquisition and he would not give a straight answer. But whats interesting about that, it leaves the door open for them to try to get out of this acquisition, so i think that they are still trying to figure it out, but they havent definitively decided, which means the deal still may not closement i wont be surprised if they were very, very disappointed to have this news leak out. It doesnt make anyone look good in this situation, and Jim Armstrong when he left the interview this morning was getting on a plane to head to yahoo right now, so im sure hes in the process of trying to figure it out. Didnt exactly sound like a ringing endorsement from tim armstrong, yeah, were not really worried about it. I think its a matter of what did they know, when did they know, how much did they share, and also how serious this is. Weve seen so many Different Companies and services and systems getting breached, it matters now about the recovery and coverup, so i think thats the big question, how much was actually shared or up front and how much yahoo s already doing to recover from this. Josh, i wonder, you know, we went through this yahoo news last week, the white house had some of its personal documents, emails regarding the first lady hacked. Colin powell has learned about this the hard way. Are you sensing a degradation in the willingness to use email as a Service Overall . You know, i do think theres a real question of when you put something in digital form anywhere, what actually is going to happen to it and you should just be ready for that to come up some day somewhere. Its part of the popularity of snapchat, even among older people. You shoot it, somebody sees it, its gone forever, or gone quickly. I think thats a beginning pattern we might see a lot more. Sure makes these encrypted messaging services sound like they make a lot more sense. Julia . Well, in the wake of the sony hack in hollywood, all the studios are talking about the fact they never have been on the phone as much as they are now, and now people have even lettered to faxing things because they are so wary of emailing. Everyone assumes any email they send will be read by someone at some point. Fax machine comeback, Smoke Signals next. Josh, julia, thanks so much, guys. A lot to get to, we got through a lot of it. Dont miss julias interview with the founder of medialink, you do not want to miss that. When we come back, a first on cnbc interview with rokus ceo anthony wood. Hes lifting a veil off the companys latest device lineup that made apple tv and Google Chrome cap. Coming up. Hey gary, what are you doing . 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