Affiliation, so we have very interesting orderly process and, you know, i asked each person what they wanted to do and i gave them one minute each . Each. I wasnt interested in anyones life history, and it was really sort of what do you want to do, and we had a few options and virtually Anyone Running a Public Company was on that group could nod and deal with the pressure from their constituents and so i basically said, well, it seems pretty clear, you know, that i really didnt want to have a melting ice cube type of thing. People were under legitimate astonishing pressure you should have seen some of the emails that i got tell me you know i was accused by people of being a nazi i mean, im jewish struck you as absurd, right it was absurd and i got hundreds of these things and so it was pretty clear that the country itself felt like it was going out of control we had a logical meeting, and decided that there was just too much pressure for too many people all running public companies. Anybody voice to stay, to hold it together im not a tails out of School Person it was pretty widespread that this was just so hot that its hard to just have all those constituents, you know, attacking ceos just so we can check off more boxes on the narrative that emerged to make sure that the storys accurate, on New York Times, it was reported you were outraged by what the president said during that News Conference no, i wasnt outraged what were you i dont know where the New York Times got that one well, they didnt quote you, but they quoted people familiar with the process of course they didnt, because this wasnt true another one of the narratives was that, okay, so there was you were outraged, you say that was incorrect. You and jack tried to hold it together i think we did it alphabetically im a great believer in order. You and jack would have been close to the bottom . By the time you got to w, it didnt much matter. The other narrative was that you were miffed annoyed, confused, that there had been an agreement that there was going to be a statement that you joint jointly agreed that it was best for everybody, its not you, its me, its not me, its you, and the president kind of stepped in front of that with his tweet saying they cant disband it, im firing them. And then so were you miffed by that was that what was supposed to be happening and didnt happen . Well, this is the political world, and i dont control the political world. And, you know, that was a sequence we made a decision, we communicated that to the white house, and thats what ended up happening. Do you still talk to the president . Sure. How often not your business have you talked to him recently its still not your business. Maybe it is your business. Its not my business i hear hes very fond of you. In new york city circles, its known that hes very fond of you, that he admires you a lot because of your real estate portfolio, and, you know, do you still some people say the trump whisperer, is that calling it too much . What are you saying i cant comment on my relationships like that. You know, ive tried to help a number of president s worked on a bunch of sensitive stuff for president obama, you know, helped president bush during the financial crisis. Im a great believer that, you know, people who have background, its relevant, should help their government, help society, and that now has actually been a little controversial, apparently. But i think you have an obligation and if you can make things better, doesnt matter if they are democrats or republicans, you know, you do what youre personally comfortable with, give advice, help out, and more people should do it. Its a good thing. You know, if people dont want to listen to you on occasion, that happens if they like to hear what you have to say and mostly do it, then thats good but we all have a higher obligation, i think, than just making money have you googled yourself lately ive never googled myself what does it say so i only bring it up, because you said we have a higher obligation than making money, so i hadnt googled you either until yesterday i discovered i didnt get invited to your very swanky 60th, its okay. But i wouldnt recommend it. I mean, its quite mean. You join the Trump Administration because its going to help you make money Washington Monthly said yale should shun your money and its based on a blog post by a student who said that you take advantage of the poor through your roles portfolio im not going to ask you to answer all of those things, but when you tell me you received hundreds of emails claiming you were a white supremacist when youre jewish, the tenor in the country against people like you has gotten so ugly, and im not sure why well, its not just about people like me, its adversarial society, and its very broad, its very deep, there are a lot of experts who could tell you how we got there, but its a terrible position for the country. I mean, if you look at universities, which dont permit free speech, i grew up in the 60s, boy, there was plenty of free speech, and you didnt have to agree with a lot of it, but you heard it i heard that wasnt the only thing that was free back then. It was informative. And now, you know, sometimes you cant say anything for fear of being shunned. That is not the way a democracy is supposed to work. I happen to think were like really off course, and ultimately these things get corrected. Final political question, daca we know that this is important to you, because of the schwartzman scholars, one student in particular, carlos. Have you been trying to influence the president about that he seems to have backed down from his harshest positions in his tweets i think the issue with daca right now was really a legal issue. I think, you know, there was in the prior administration, there was another issue involving 5 million people, you know, it was thrown out of court, and i think the perception was here that a similar outcome would happen, and so it was thrown into the congress im really passionate about this issue. Theres 800,000 kids who were brought to the United States and they were asked to register, they did, and their outcomes in their short lives, less crime, more achievement, really good outcomes, and where are you going to send them they are kids. Some of them are adults, right . When apple says they have a certain number, you could apply when you were 31, so you could be 37 by now, right . I realize they came with their kids, may not even speak a language of their home country youve been listening to a conversation between Steve Schwartzman of Blackstone Group at the seventh annual delivering alpha conference in new york here with john, always interesting to hear the back story behind the dismantling of the white house ceo counsel, thats just where michelle started. Didnt really give too much in terms of the nittygritty. She brought up the report he and jack welsh wanted to keep it together, we went alphabetically and by the time we got to w, it didnt matter, because the other ceos had to serve their constituencies when it came to the response of charlottesville. He also said he wasnt necessarily outraged after the president s presser, and that some of the mean things that hes been accused of by people, like being a nazi, were outrageous, because hes jewish. He didnt really answer the question how he did feel hes clearly protective of his relationship with the president , saying that they do speak, but he wouldnt say how often. How much. Right very protective in that sense, but he really highlighted the pressure on ceos during that time, from their constituents to do something about the council and probably back away from it i hadnt heard it phrased in quite that way, not so much necessarily their own sense of moral obligation, perhaps, but the pressure they were getting from the outside so i guess thats one persons recollection its up to interpretation whether everybody feels that way. Now, lets get to carl following the aftermath of Hurricane Irma in tampa, florida, hes standing by with the latest carl bit of a left turn there, john, but the common thread, of course, is delivering alpha, where earlier this morning the treasury secretary talked about how the government is thinking about irma and harvey, as events that affect gdp and how they are also thinking about assistance at the federal level this is what he said the first payment is a down payment. Well see what we need to spend more, but the president will make sure that whatever the federal government needs to contribute to this, we will do so there clearly is going to be an impact on gdp in the short run we will make it up in the long run as we rebuild. That will help gdp now, to that end, Goldman Sachs is out today, guys, with a note that basically says the same thing they are cutting their q3 tracking gdp track from two way to two, based on the hurricanes, looking at flooding damages that they say are higher than expected they do expect some downside in retail, downside in housing, downside in consumer the good news here where we are, we expect these channels at the port to open around 2 00 eastern time port of tampa bay just tweeted a few moments ago that they are awaiting confirmation from the coast guard that these channels are safe to bring about four oil tankers that are on standby in to port. They have to make sure they have to stand water and make sure they are safe and thats one reason weve seen coast guard boats up and down the channel earlier today. Governor scott talked about how important this is in getting fuel to the state of florida a few moments ago, as well we got tankers, both ready to come in to tampa bay and everglades, which is where our biggest fuel is. But some fuel comes in Port Canaveral and here so were going to watch all of that. Obviously, getting fuel around the state is key to getting utility trucks moving and getting all those power lines restored down in south florida, it is a difficult story still. Our Contessa Brewer is in key largo today. Hey, contessa. Yeah, and carl, we just got here and immediately the sight of damage was apparent here is a neighborhood, one of the first that you reach in key largo as youre coming down to the florida keys, and the flooding stretches all the way back to the bay behind me, but interestingly the neighbors say it was really the wind damage that they hadnt expected. They expected their damage to come from a storm surge, but instead what they are dealing with is a lot of downed trees. Theres no power in this neighborhood, and from overhead the aerials are unbelievable boats just piled into each other and into the shore, roofs completely lifted off of buildings. The key part of this is going to be opening up this major thoroughfare from homestead, florida, into key west just route 1 and they havent opened that all the way, theyve only just opened up part of the upper keys for residents coming back. You have to show your i. D. In order to get in here, or a press pass, and they are letting people come in and assess the damage, but theres no gas down here to be had again, people had generators runnin running. Verizon is coming in with an emergency cell phone tower to set up communications and it will run on generator power. For a lot of people that want to get this place open for business ahead of tourism high season, gas is of major concern. We looked all over for gas trying to get back to key west and waited in a gas line for more than an hour to fuel up theres a shortage of stations with fuel in the tanks and the electricity or generators needed to run those pumps and thats essential for getting tourists back into the florida keys sara yeah, the images from the keys looking different from where you were earlier in the week across the state. Contessa, thank you, our Contessa Brewer in key largo Steven Mnuchin and ray dalio both making headlines at the delivering alpha conference in new york city earlier this morning. Lets send it out to andrew, who is there and led those conversations. Andrew, give us some of the highlights thank you, we are at the delivering alpha conference. Becky, joe, and i sat down with Steven Mnuchin he was optimistic on tax reform, saying a plan will get passed this year, despite the fact congress has yet to release a proposal he also sounded off on north korea and the effectiveness of sanctions. In north korea, Economic Warfare works. I made it clear that the president was strongly considering, and we sent a message, that anybody that wanted to trade with north korea, wed consider them not trading with us. We can put on economic sanctions to stop people trading also had a chance to sit down with ray dalio, founder and ceo of the largest hedgefund, Bridgewater Associates he talked about north koreas rising risks to the markets and the administrations strategy. I think that this can have gio political implications in other words, what korea can reshape the whole asia region is like countries in that region think who am i going to be affiliated with, how does that work so this will have implications all through the all through the region another big notable moment of the interview, dalio mentioned the implications of losing garrett kohn in the white house. Heres what he said. If he was to leave, it would be terrible. Because it would be terrible in two dimensions it would undermine the future progress of economic reform and so on, and it would also represent a challenge in putting together administration. Powerful words from ray dalio, perhaps with an audience of one, being President Trump in his efforts to try to keep mr. Cohn in that role, at least for now. Also saying he might be a good fed chairman so well see about that. Back to you. I feel this is developing as a parlor game. Hasnt been a question whos going to lead the fed when yellins tenure leaves in february, and and he mentioned those, as well cohn is still a good pick its not clear that a lot of other names have emerged we do talk about some of them in, as you said, a parlor game of sorts in some ways i think what dalio was suggesting beyond the fed chairman idea was just simply the idea of having somebody thats competent, that the market knows, respects in the white house matters. The idea of having an adult in the room and gary cohn being one of those adults. With a global perspective from dalio thank you for wrapping up sound from delivering alpha. More to come and coming up, tim cook tweeting about todays highly anticipated event at apple, saying its a big day at apple we are honored and thrilled to host our first keynote at the steve jobs theater this morning. We go live to apple park in cupertino next and then we speak with the head of one of south floridas most iconic hotels. The ceo of the breakers is coming up. Plus, were at delivering alpha all day here on cnbc squawk alley is back after this you always pay your insurance on time. Tap one little bumper, and up go your rates. What good is having insurance if you get punished for using it . News flash nobodys perfect. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. Switch and you could save 782 on home and auto insurance. Call for a free quote today. Liberty stands with you™ Liberty Mutual insurance. Apple getting ready to kick off another launch event this afternoon, and this time apple park in cupertino. Joining us is scott galloway, author of the new book the four, the hidden dna of amazon, apple, facebook, and google. Doesnt get sexier than that and joining us from the apple event in cupertino, dan firmer dan, if you would, set it up for us there are a lot of leaks going into this event as to what were going to expect. What will you be watching for . I think the big picture context is the most important. Two things one, is theres a perception apple hasnt been a leader for a bit, i think this is a really Good Opportunity for them to come out with a really strong portfolio of new products and show everyone they still make the best stuff the other thing is this campus theyve been building for a long time, put a lot of money into it, and this is the first time to show it off on a big stage. Yeah, the steve jobs theater outside the spaceship, scott, what are your expectations, given the fact it is always an expectation game with wall street and apple the stock has had an incredible 40 runup so far this year. Yeah, i think what ill be looking for is one on a functional level i think Wireless Charging is probably the biggest unmet need in all of technology we all are frustrated with that, but the ability to do it and cement its position as a premier product, the iphone x, its going to be interesting to see how cool and sexy and aspirational it is as they move towards quadruple digits for a phone and trying to cement their position as the luxury brand in tech dan, do you see anything around the event, banners, signage, that hints at anything that we have not heard already, that we might expect coming up in a couple hours when this kicks off . I havent had a chance to do any spy work yet i was just escorted up to this amazing, almost like an Olympic Village here for tv crews, but i havent had a chance to really see anything but they shut the street down, done a lot of stuff for the event today. Its a big production. Scott, your book coming out talks about these four powers and, correct me if im wrong here, basically says google, amazon, apple, and facebook have replaced for our society god, compassion, consumerism, and sex. Apple being the sex. What does apple have to announce to live up to that rather high bar as far as excitement this has to deliver the design, the functionality, makes this your ultimate symbol of wealth and attracting a mate. This is the new luxury item. Kids arent buying high end watches as much, they are not as into cars, but this is your signal you have good genes this is the ultimate example of wealth and your attractiveness apple went from being the best house in the worst neighborhood tech to the best house in the best neighborhood, and that is luxury best margins, the decisions we make around things like luxury and being more attractive are irrational Decision Making irrational is code for high margins, so with apple we have a company with an operating margin somewhere around toyota. The price question has always been sort of an interesting one to debate in terms of apples strategy, especially in emerging markets. China is becoming such a hot market they have competition on the lower end, but you say its all about that aspirational luxury product . We have debated and the narrative is if they brought their prices downthey could expand their market share from whatever it is to 40 or 50 , but theyve been right although they have 12 market share, they command between 80 and 90 of the profits because they say if you have disposable income, this is the product you want pricing is a signal. Were all attracted to the most expensive thing, and apple has staked out that ground in the high end and its worked exceptionally well most Profitable Company in the history of mankind this quarter will do double the profits amazon has done in its entire history largely built on ten years of iphone thats how they got to that next point, dan so, i guess is one of the questions here for wall street going to be how many people are going to be willing to upgrade based on what they see today and based on this 1,000 phone how do you gauge that kind of demand well, i think the better question is how many phones can apple actually make, you know, a lot of people are a lot of people are wondering when this new super high end supposedly called the iphone x, when its going to ship and what quantities even last year, the year before, apples had many years to get really good at making these iphones, even with all that experience, there are still incredible shortages, especially on the high end models so i imagine they will sell out for months of this new device, and the question is how many can they make. And thats probably in the tens of millions, but maybe not in the hundreds of millions yeah, that supply question always key when it comes to apple. Some of the chip makers rallied overnight in asia. Guys, well leave it there thank you. Thanks. Scott galloway, who well have back on to talk about his book a lot more in there besides apple. And before tim cook takes the stage there in cupertino, heres a look at another top tech ceo on the stage. I guarantee you this is a different look Alibaba Ceo Jack Ma surprising employees at the companys 18th anniversary celebration as Michael Jackson performing to billie jean and black or white with other company executives. I mean, i cant think of another ceo, sara no. He pulls it off really well. He really went for it, and pretty much nailed it. Scott galloway, come on. Who else would do this you know what, thats what you can do when you achieve that kind of status, but you know what he did thats the key he owns it he looks like hes really having a good time. Im looking forward to your sequel book the five. You figure out what that is that jack ma is giving us on stage. Still to come, much more look at that with the backup dancers. Yes, todays delivering alpha conference here in new york, blackstone blackstones Stephen Schwartzman speaking out for the First Time Since the disbanding of the president s strategic and policy forum. Plus, another rally on our hands today with the s p 500 hitting record highs k caterpillar, oracle, mrofticso all hitting highs. Squawk alley back in a moment. Good morning, everyone, im suh herrera. It could take weeks before power is restored to some Hurricane Irma victims that is the word this morning from femas administrator brock long we have been working with our partners at the department of energy to prestage power crews, not only in florida, but all over the southeastern United States, but let me reiterate, it takes a long time for this infrastructure to come back up it may take multiple days, if not weeks in some areas, as weve been saying before the storm hit. Senators orrin hatch and ron wyden are demanding equifax provide answers about the companys massive data breach affecting some 143 million americans. They also want to know whether u. S. Government Agency Reports were compromised the wall street journal reporting equifax had lobbied congress about loosening regulations on Credit Report agencies demonstrations zbeagainst a visit of steve bannon to hong kong they are also protesting against President Trumps agenda, while marching to a hotel where bannon was to speak at an investment forum. Thats the news update this hour back to squawk alley. Sara, back to you. Sue, thank you. Lets get now to seema mody with the european close another strong day very strong day, sara european stocks at a onemonth high with the broader markets extending their streak to a five, so this risk on rally has really gone global, but look at the ftse, exporters under pressure as the pound rises to a oneyear high on some stronger than expected inflation data yeah, we are seeing inflation in parts of the world up 2. 9 last month, compared with a gain of 2. 6 in july. Britains office for National Statistics reading the increase to rising prices for clothing and oil, this all ahead the bank of england policy meeting on thursday meantime the uk government said its likely to refer the buyout of pay tv group sky to competition regulators the uks culture minister citing plurality and broadcasting standards. Critics of the 15 billion deal say Rupert Murdoch and his family already control too much of the media in britain. Sky off about 1. 5 in todays trade. And we finish with emmanuel macrons visit to caribbean territories devastated by Hurricane Irma macron arrived in guadalupe arriving with water, food, medicine, and emergency equipment. He said return to normal life is an absolute priority later today he is to arrive. Seema, good pictures, thank you very much. When we come back, well talk about the future of a. I seibel systems founder tom seibel live from delivering alpha. But first, rick santelli, what are you watching today never mind well talk to rick hopefully, hes watching his treasury yield bounce, along with the u. S. Dollar lbeig b im. Wel rhtack. Not rebalancing your portfolio. Pursuing your passion, not reacting to market downturns. Focused on what you love, not how your money will last through retirement. Let us help you with those decisions, and get on with your life. We make it easier to plan for retirement with day one target date funds from prudential. Look forward to your 401k plan. Can we at least analyze can we push the offer online . Legacy technology can handcuff any company. But yes is here. The new app will go live monday . Yeah. With hewlettpackard enterprise, were transforming the way we work. With the right mix of hybrid it, everything computes. We cut the price of trades to give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. Dows up 65 points treasury yields are higher, so is the dollar. Lets get to rick with the santelli exchange. Indeed they are, sara, and that is the whole point of Todays Exchange you know, it wasnt about a week ago we were hovering just several basis points above that key 2 level in tenyear note yields all of a sudden here we are at 217, and by the way, its going to be exciting, because at 1 00 eastern were going to have 20 billion ten years to auction off. And like yesterdays three year weve had an even bigger concession whats a concession mean in this context . Means when you go to an auction, youre going to buy something. And the sellers, well, the price has been going down. So you get a cheaper and cheaper price. If, that is, investors and those showing up for the auction today want to be long on the securities side of this equation and im not sure they do lets take a look. How much has changed in the economy over the last couple of weeks . In my opinion weve had a steady eddy economy above 2 for quite a while, but yet many thought that the channel of weak, in their opinion, whether its national or Global Economic statistics was one of the biggest channels driving rates down i disagree i think its a lot of things that have to do with central banking and calibration. So, the factors key for the bond market in particular and all sovereign markets of late are things like north korea. So, really, its more of an avoidance versus a preference equation ill give you an example you know, avoiding trying to go home with positions that you prefer so, many out on the street think rates eventually going to go up. Its a timing question but with things like north korea this past weekend, avoiding the market means avoiding the position you prefer, which in my opinion talking to many is higher Interest Rates. That has moderated only a little bit. And as far as the data, its been pretty steady eddy, although today i have to tell you we got another jolt from jolts. Indeed we did. As a matter of fact, if you look at a chart of jolts, what youll see is we have two backtoback 6 million or higher job openings never happened, never had a 6 million handle and finally, coming up this thursday is going to be the bank of england you heard cnbc talk about it look at this chart of pound versus the dollar. Its at a oneyear high. Inflation rate is getting rather hot, so we have European Central bank talking about some less accommodation type policy. We have the bank of england kind of getting pinned in, and we are on our road for less accommodation with our fed all of those seem to be higher Interest Rates the problem is, sometimes its difficult to hold that position. Sara, back to you. Yes, good way to sum it up. Rick, thank you. Lets send it back now down to carl whos in tampa with the latest on the Recovery Efforts following Hurricane Irma carl, how local businesses are getting back online. Yeah, sara. Weve talked about this a lot this week, the degree to which the recovery is helping or hurting travel and leisure, which, of course, along with real estate is the economic engine here in the state of florida. Paul joins us today, the ceo of the breakers, and flagler system a lot of our viewers are probably very, very familiar with the breakers. Paul, thanks for being with us today. Yes, my pleasure. Thank you. I got to ask you whats the power situation . Yeah, the power situation for us is we were out of power without power for 26 hours, but it came back on last night at 5 15, and we have power to about 98 of the property, just some small outbuildings across the street, maintenance buildings are without power, but 98 is in place. Weve been looking at maps of the state today, where the concentration of power loss in the southwest and especially even in the northeast, jacksonville area not a surprise, given the flood video. Have you seen an outage of this scale in your experience ive been here at the breakers palm beach for 32 years. I have not seen an outage of this scale, and to that point, as far as we know this morning about 50 of our staff, we have 2,000 employees, are still without power, and i think that approximates what were seeing throughout the county. How about surge i mentioned jacksonville we know the Atlantic Coast got a lot of water coming in did it affect you in ways more so than youve seen in those 32 years . No. Actually, we did not have more surge than ive seen we, certainly, the ocean was rising and roaring, but we had no waves overtopping our seawalls we actually by the time the storm was passed us, we actually ended up with more sand on our beaches than less, and, you know, were pretty fortunate were about 15 feet above sea level to begin with, so weve got some builtin protection, and no problems on that front. As far as bookings, paul, i wonder to what degree does this affect your business not that travelers would be afraid of this happening again, but maybe they think, well, maybe my experience with the breakers is not going to be what i am used to, given the recovery that floridas going through yeah, thats not something theyll need to worry about. You know, were really blessed our property did not suffer any structural damage. It really is a landscaping cleanup effort and that really can, you know, confirmed all the work weve done in the past 15, 20 years to protect this property from storms like this we can recover very quickly. We anticipate opening on friday, so we would have been closed for about a week, and to some degree, you know, we could have been closed fewer days, but we wanted to make sure our staff is well taken care of we got them out early. Were not going to rush them back, and we want to make it easier on all of our constituents, our team, our town, our community, so, you know, future booking, there will be some people that are affected, but in my experience, you know, our guests know that this property is well protected and they know how we take care of it, and well be right back in business. Well, youve got a good reputation for a reason, paul. Appreciate your time best of luck in the recovery look forward to talking to you again. Paul leone, ceo of the breakers and flagler system guys, over to you. All right, thank you, carl, for that great insight into recovery for the Tourism Business there in florida. Meanwhile, star board values jeff smith wrapping up his best idea presentation at cnbcs delivering alpha our dom choo is back in new york with that. Dom . What we have is jeffrey smith, star boards two best ideas, first is a name a lot of investors are aware of, perrigo. Jeffrey smith, again, has board representation, has been an activist in the stock for quite some time over the past year he still says that the company have a world class supply chain, 7,300 skus, individual product numbers, a dominant market share for their portfolio, also a huge amount of Growth Opportunity he also talked about their generics business and higher opportunities for that particular business going forward. Also that it trades at a discount to its u. S. And international peers. Again, making the case for perrigo. Also makingthe case for altaba formerly known as yahoo, he says, interestingly enough, this is a way to play potential tax reform in the United States if that tax reform does come to fruition, they can unlock a lot of potential with those stakes there, so Jeffrey Smiths two ideas coming up here, perrigo and altaba back to you guys that altaba pick ises fascinating. Coming up, live to delivering alpha and speak with tech legend and sooe bell systems founder tom sooe belei. Well be right back. I think that shes a very nice girl. You never got the brakes looked at . Oh yeah. No. At cognizant, were helping todays leading manufacturers make things that think and do automatically. Imagine that, a world of new Digital Products and services all working together for you. Can i borrow the car when its back . Get ready, because were helping leading companies see it and see it throughwith digital. Dad molly, can you please take out the trash . sigh dad molly trash whoo mom hey, molly . Its time to go bell ringing class, lets turn to page 136, recessive traits skip generations. Who would like to read . molly i reprogrammed the robots to do the inspection. Its running much faster now. See . Its amazing, molly. Thank you. blackstones Stephen Schwartzman speaking to michelle at cnbcs delivering alpha here in new york. Michelle joins us with the highlights michelle hey there, john this is the first time Steve Schwartzman has spoken since the Leadership Councils formed for President Trump were disbanded in the wake of the protests in charlottesville. You recall it was a very tense time, and at that time schwartzman organized a phone call with all the ceos on the council at the time to discuss whether or not they should keep it going ultimately, when it was over, he said the decision was clear, he explained to me why. Virtually Anyone Running a Public Company was on that group could nod and deal with the pressure from their constituents, and so i basically said it seems pretty clear, you know, that really didnt want to have a melting ice cube type of thing. And people were under legitimate astonishing pressure you should have seen some of the emails that i got tell me you you know, i was accusedy people of being a nazi i mean, im jewish he went on to say that he did find it frustrating that there was a lack of freedom on speech of universities these days, and then we had more of an investing discussion and talked about the performance of blackstone over the years and what they are doing in real estate in london, et cetera. Ill be carrying those for you later on in the day. Guys thanks, michelle. Great stuff. And Artificial Intelligence making strides among health care, finance companies and more as they expand their Data Collection teams its also a big part of ios 11 and the new iphone for a broader perspective on data and thefuture of art official intelligence, were joined by ceo tom siebel, live from delivering alpha. Good to see you again. Good morning, jon. Tell me first this new iphone and ios 11, apple is continuing to try to build Artificial Intelligence into the cloud and into the operating system not only guessing what youre going to type before you do, but where youre going to go and make that better how important is the iphone and the work that Companies Like apple are doing, laying the groundwork for the broader global revolution in ai . Well, its hugely important lets think about the power they have in iphone in your hand today. That amount of computing would have cost approximately 1 billion in 1970, and today for, you know, whatever it is, a few hundred dollars you have in your hand with the massive availability of storage, mass availability of extremely powerful processing capability, were able to engage in a class of applications that were heretofore impossible generally called ai. This is about Predictive Analytics, predicting intent and predicting purchase intent and predicting peoples desires and predicting peoples needs and device failures, and its a very important new field. The opportunity that you see and that your company sees is in Predictive Analytics what do you expect that to do to business over the next five years as we really start to see its power . Predictive analytics changes. The internet of things enables and the data that results from that, the internet of things is about the censoring of value chains, travel, transportation, aerospace, automotive and consumer goods, you name it. In the last 17 Years Companies havent solved 19 billion censors in their value chain in the next five they will install 50 billion sensors it enables ai and Predictive Analytics. Predictive analytics is what ai is all about, so we can engage in a new class of applications that changes everything about the way we design products, deliver products, manufacture products and manage business processes bringing, you know, very, very high levels, cost efficiencies, higher levels of customer satisfaction, better ru the Technology Turns on us at some point. Well, this has been a this has been a discussion thats been going on since the beginning of the 19th century with the invention of the jacquard loom, and that, you know, technology would replace jobs, would take over the world and im certainly not going to get into an argument with elon musk because im not sure theres anybody smarter in the Information Technology business but this is something of a pr gambit fortes larks the idea that we need to regulate algorithms is that we need some federal agency to regulate algorithms, computer algorithms is a little bit of a stretch well, thank you, tom, for your insight quite valuable coming from delivering alpha looking forward to speaking with you there. Squawk alley is back in a moment apple fractionally lower in the morning trade ahead of this big iphone announcement that we expect to kick off in just over an hour, and youre looking at the steve jobs theater at apple park in cupertino. This is apples new headquarters and largely designed by steve jobs he went to the Cupertino City Council himself and even as he was ailing to appeal to them, to let them build this place, sara. Were continuing to see apples innovation, not just in this camp, but in products and investors, not certain its going to be enough. Yeah. The question is what does the new phone do theres been a lot of leaks already and this has been the clear focus, high end, 1,000 iphone x for the tenth anniversary and the 1 and 8 plus, an upgrade from the 7s expecting a new version of the watch potentially, new features around the tv which we havent gotten in a long time and listen for anything else. Maybe they will talk about the home pods, the alexa compete for. What complicates this, the volumes on what might be the iphone 8 probably pretty good because they have the manufacturing process down from the 7, if in fact is built similarly, but were not clear on whats going to happen with the iphone so or iphone x. How many will they be able to make and when can they deliver them how cool will they be will they be cool enough to pay 1,000 upgrade im into the facial recognition, unlocking things instead of the home screen but i always check out the colors, too. The cool factor, im not worried about. Thats it for squawk alley. Lets send it over to halftime at delivering alpha in new york. Hand welcome to the halftime report. Im scott wapner were live from the cnbc and Institutional Investors seventh annual delivering alpha conference here in new york city today the top mind in investing from Julian Robertson to ray dalio, sharing their best ideas, and other ones with us for the hour, investing legend james