Transcripts For CNBC Squawk Alley 20160113

And with a Golden Ticket its a golden day welcome to squawk alley. John and kayla and myself at post nine as we watch yet another rally fade away on some more bearish than expect inventory numbers on oil. Well watch that today. Meantime, the former coo of twitter and a partner at y combin ator. Its great to have you back. Good morning. A lot to talk about. Thank you, carl. Well start with apple. Last week according to the intercept ceo tim cook criticized the white house for a lack of leadership on encryption. Of course, tech ceos are anything but yawn itd on this topic. Heres what blackberry john chen told john fort last week. I think theres just not an organized effort for it. I think this job, you are correct, you are not missing anything. Many of us have a different position and a different view of it. Some of us feel stronger than the others. I think theres really eventually it needs to come from an organized effort and maybe the government this is a private Public Sector conversation. Theres a conversation swirling around about apple. Fortune makes the case that apple should buy the company. The company has declined to comment. Lets start with encryption here, ali. We talked about how the valley has been split on this for a long time. Some people thought that maybe postparis and Postsan Bernardino that would change. Has it . You know, i havent sensed in the networks that i sort of keep up with. I think that most people that i know in the valley feel the way tim cook does that theres really no way to create a back door only for the good guys. If you create a back door, then the bad guys are going to get in there as well, and all of our privacy is going to be compromised. Not just by cyber criminals, but also by even state actors. Whether thats the chinese or whoever it might be. I actually hear a lot of handringing about government pressure in this area, and mostly in the valley i hear people firmly behind tim cooks view. Ali, what if i find so interesting about this issue is that back in 2011 tech went all in against sopa on the messaging. You know, privacy online and against censorship. On Net Neutrality last were and the year before there were a lot of united voices on that. Why do you think encryption is a bit different . Essential than sopa, but even from the Net Neutrality response. Well, i think its really a difficult issue. I mean, i think nobody likes to see the horrors that weve seen in paris and san bernardino, et cetera. I think the Tech Community is motivated to be able to try to help where it can in terms of stopping that kind of stuff from happening. The truth is there are always going to be encrypted channels of communication, and there will always be ways for bad guys to hack into systems that are left open, so i think among the people that i talk to, theres a really strong feeling that weakening the sort of data privacy protections on your phone, weakening encryption is a bad way to address this problem. I think its a lively debate because its such an important issue. In the meeting between white house officials and representatives in the Tech Community, just a couple of weeks ago, it was social media that came to the forefront. Encryption took a back seat. Given what we know about how potential criminals are using social media, do you think that should be a higher priority than encryption in and of itself . Well, i know that at twitter, you know, we had a lot of constant communications with Law Enforcement, and we were often trying to balance the rights of our users against the legitimate desire of the state to be able to get information that would help them prosecute crimes. It was in fact, we had a whole group of people whose job it was to deal with Law Enforcement and to help them do their jobs better. I think you would find the same thing at other social platforms. I think to imply that social platforms arent engaged with Law Enforcement and arent cooperative, i think, is misleading. I think theres actually a lot of dialogue going back and forth, and i imagine that is only increased in light of some of the terror attacks you guys mentioned. Now, ali, its interesting this idea that apple could buy time warner. It strikes me as a really bad idea because if owning content really helped you make deals, then sonys kinect would have ended up being a prominent download service. Apple has had a close relationship with disney. Certainly since disney bought pixar, where you used to work, and it seems like it could also kind of screw up that disney relationship. Maybe bob eiger would have to leave the board. Whats your take on that possibility . Yeah. Its not the first time these rumors have been out there. You alluded to disney and others about apple going and buying a big Hollywood Studio or buying content, and to be honest with you, i dont see it. I dont think thats apples dna. I think those businesses are very different, and i dont think as you point out, you need to own content to be able to create great User Experience which i think is really apples core. I dont see it happening. Not going to stop a lot of people from chasing the story, but that is a story for another day. Lets talk a bit about twitter. You mentioned the company. Shares have slipped to a new low. 18. 75. This was once a 74 stock. Well below the iporice of 26. Some more concern this morning on the sell side about maus. Weve heard about 10,000 characters. Periscope has been integrated. Are you beginning to believe that everyone who has twitter already has it. I dont think its that i dont think its quite that dire. I think the fact is, as you guys all know, the level of innovation in the core product has been fairly meager, and with jack as the inventor of the products coming back to the company, i expect a lot more innovation to happen. I expect a lot of core assumptions about the product to be challenged, and i expect the product to get better and better. Now, they are now unlike five years ago, a whole host of social and messaging products where users are spending their time. We know that people tend not to use one platform exclusively. Theyll use a myriad of platforms for different needs. The environment has gotten much more competitive, but i do expect the Twitter Product to become easier to use and better over time, and time will tell whether or not it can continue to grow and attract more users, but i dont think the story here is game over. Twitter is not going to grow any more. When you say core assumptions being challenged, what do you mean . Do you see the product changing in a wholesale way . Well, you know, you alluded to one of them. You know, the 140 character conversation has gotten a lot of attention the past couple of weeks. Another has been the notion of how tweets are organized in your timeline. Are they strictly reversed chronological, or can there be more intelligence applied to how tweets are shown. These are two core assumptions much the product for the entire life of the product. That tweets are shown reverse chronologically and only that tweets are 140 characters only, and i think jack has been looking at both of those assumptions and do they make sense Going Forward . That is just the core of the product. You mentioned live video through periscoping being incorporated in tweets, and new experiences like moments, et cetera. I expect both the core assumptions of the product to change and experimentation along that axis, and i also expect new experiences and new ways to consume twitter and consume tweets as well. Its exciting to see, you know, jack dorsey back there, because i think he has the confidence of the inventor of the product, and he is not scared to do things that might seem crazy at first blush. Yes. Can speak with the founders really quickly, we have a news alert on fundraising over at uber. Kayla has some of that. Kayla. We have more details on that retail offering thats underway for uber. Remember, on monday our david faber reported shares being offered to Morgan Stanleys High Net Worth client, but i have learned that there are people who have seen this organize offering as well, that its being sold to clients at Merrill Lynchs brokerage as well. The terms of the deal are roughly the same. 62. 5 billion valuation around 49 a share. The difference is that they have to reach a higher threshold in order to participate in that deal. It compares to Morgan Stanleys requirement of 250,000 investment with a much lower minimum for investable assets too. Now, this difference has miffed some Merrill Lynch clients who say they could qualify for the deal at morgan stanley, but not at merrill because they dont have enough money. Of course, there is intense competition. There long has been between these brokerage units, not just for afl we want clients, but because the banks want those eventually book running spots on all of those ipos. We saw it with facebook too. The current fundraising is around 2. 1 billion. It did raise 1 billion for Institutional Investors in december. Im told the remainder could come from this retail portion. We should note, uber and merrill declined to comment, but carl, its certainly interesting to see not only Companies Staying Private longer, but also tapping the retail base before they even go public to get some of that money. We had talked to Jessica Lessin about this very company yesterday. Fascinating reporting. Ali, the color that weve gotten from the valley is that as the markets come in, the mindsets has gone from growth at any cost to profitable growth, but uber appears to be Strong Enough to just plow ahead. What is your take on that . Well, i think youre right. Markets have contracted. The private market has contracted. I think in q4. Driven by a set of factors. The ipo market being one of them. So i think that, you know, rounds that are being done now, private rounds, are tending to be priced differently. Theyre tending to take longer to close. Et cetera. Uber is special. You know, i am not privy to sort of private company data, but we all know how they have grown. We all know how sticky their usage is. We all know theres a very exciting future of autonomous vehicles, which i think is truly groundbreaking technology, truly lifechanging technology. Where uber is a player in a world i dont think too far away where transportation is a service that we can all order a car thats driven autonomously and for a fraction of todays cost get to where we need to go. I think uber is both its growth and its potential make it special in this environment. What do you make of the fact that as these Companies Stay private longer, much of the Wealth Creation goes to the venture capitalist, goes to some of the Institutional Investors and now even though it is starting to go to some of the retail investors, they have to have 100 million in some cases in order to get in on that deal. Is that shielding risk for investors not sophisticated, or is that withholding wealth for people that would otherwise want to get in . I think the trend of great companies, Great Technology companies, staying private longer is here to stay. I think facebook is the first to be the pioneer there, and i think youre seeing it all over the valley. As long as capital is available for companies, i think the default will be to try to stay private because theres overhead in complexity. The founders typically dont want to deal with when they go public. Theres a lot of typical Public Market investors, via mutual funds its one of the factors with ballooning for private companies. I expect some shakeout here. You can reserve a lot of the up side for Public Market investors. I just think that for the most part thats a thing of the past. Not that companies cant grow as public companies, but i think the hypergrowth will likely be concentrated in private companies as opposed to public companies. Certainly is the view from the floor of the New York Stock Exchange you might argue. Ali, we covered a lot of ground. We hope youll come back soon. Thank you. Thank you so much. Ali, joining us from out west. Meanwhile, as we look at the markets, were keeping a close eye on the price of oil. It was up as much as 3 earlier on that surprise inventory build. It went negative. Now its eeking back into positive territory by 1. 25 . It has been the driver of all of the equity moves. Absolutely. When we come back, according to walt mossberg, apple and google should win the coming battle over the car dashboard. Walt will join us live. Google going after facebook with a big move into the Virtual Reality space. A top goldman analyst will tell us why this has the potential to become an 80 billion a year industry and powerball is all anyone is talking about today. That record 1. 5 billion jackpot. How big of a chance someone even if its probably not you stands to win this time around. We weather we continue in a moment. Sure, tv has evolved over the years. Its gotten squarer. Brighter. Bigger. Its gotten thinner. Even curvier. But whats next . For all binge watchers. Movie geeks. Sports freaks. X1 from xfinity will change the way you experience tv. Choose, choose, choose. But at bedtime . Why settle for this . Enter sleep number, and the lowest prices of the season. Sleepiq technology tells you how well you slept and what adjustments you can make. You like the bed soft. Hes more hardcore. So your sleep goes from good to great to wow only at a sleep number store. Find the lowest prices of the season, going on now. Save 600 on the 1 rated i8 bed. Know better sleep with sleep number. Big headline this morning is about ges reported move to boston. Dade faber is back at post nine with that. David. Thanks very much, carl. Thats right. This morning from the boston globe ge is prepared to announce that its moving its Corporate Headquarters from fairfield, connecticut, to the city of boston in massachusetts. This according to a source familiar with the situation, quoted by the boston globe saying an announcement could come as soon as tomorrow. It was last september that we sat right here on this set with jeff immelt, the chairman and ceo of ge, and i asked him what the company would be looking for if it were to move to a new headquarters in a new city. Listen, i think were a hightech exporter. We want to be looking forward in a place thats going to be supportive of where the company is going. We want to be someplace where people support job creation, where its attractive to talent, good cost of living, and then its very supportive in terms of what a hightech exporter has to be all about. It was last june that ge first raised the possibility of moving its headquarters. That after an increase in business taxes by the state of connecticut. Since then connecticut has made efforts to actually reverse that or specific to ge e give them certain tax breaks that would offset those increases. It doesnt seem to have stopped the company from making a decision to move elsewhere. Nonetheless, certainly a psychological, if not significant story on many fronts involving ges decision to uproot itself from its longtime headquarters in connecticut and again take up residents in the city of boston. To chicago and now this. A couple of Big Companies changing locations. Thanks, david. Coming up, dont miss harry wilson, a member of the obama administrations Auto Industry task force. That is coming up at 12 00 p. M. Eastern. Squawk alley will be right back. The lottery is now at 1. 5 billion, but what are the odds you could actually win in Walter Hickey is lead live style writer for 538, and he joins us here. Walt, we heard all about how you need to pick high numbers, you need to not pick the xaurt generated numbers. What is the truth about this . Theres not a lot that you can do to move the needle on the individual probability of the powerball ticket. Going the random way is totally fine. Picking your birthday is totally fine. You cant really move the neeldz. No matter what, youll number the ballpark of one and 292 million no matter what. Why do we even talk about the odds . I used so buy and think youre more likely to get hit by a car than you are to but the question is whats the down side of playing, right . Im not going to win a billion dollars by eating a snickers bar either, and theres more of a health down side. It costs about the same as a lottery, so why not buy one, right . Some of us have to win. Youre spending 2 for a really good conversation piece, talking about how good you are at being rich. Dont miss out on your office and everyone else winning the lottery. Thats it, right . Not really an investment. The odds could really not be more relevant. P do you believe that it is truly regressive, harmful, repells a Government Strategy of building up drama and ticket sales. If i had to map out an ideal society, it would not fund absolutely at the lower values you are going to have a lot of folks. Its a regressive tax. Absolutely. At the higher values, once weve hit this level, its so many folks playing that. Yeah, somebody is going to win it, but its not going to be the folks playing since the very beginning. There was a stat referenced in the atlantic that americans spend 70 billion last year on the lottery. More than movies, more than video games, more than books. What will the Record Powerball do for sales . Will that number go up even higher . What were looking at already so far so in november it started out at 40 million, and then it hiked up until now were at this 1. 5 billion lottery. On saturdays drawing, 950 million drawing, they had already accumulated 1. 9 billion over the course of that process getting it up to that number. So far we spent 2 million on powerball. I have never played the lottery in my life. Its like my star wars, but i might do it this time. You can go out and buy a Lottery Ticket when you turned 18. That was not the rite of passage on my 18th birthday. Is there an office pool . Have you figured out how to divide it . Does nobody play the lottery at 538 . I heard one of the folks in espn film is doing something. At that point you have to sign on. Im not going to be the only one in my office to not win the lottery. Its insurance on that. I would not advise buying a lot of tickets to raise your odds. Its still minuscule. Whats the right number of tickets to bay . Enough so you dont feel bad the next day. One for your office pool, one for yourself, that kind of thing. If your office pool wins and youre not in it thats a nightmare. I have actually had that nightmare ten times. The reports of people spending 3,000 in beverly hills, thats a bad idea. Thats not the way i would have gone about it. We appreciate it. Thank you for having me on. Well see you saturday. If no one wins, 2 billion. Plenty more on powerball tonight. Tune into our cnbc special jackpot. Thats at 7 00 p. M. Eastern tonight. Up next, what to expect from google, facebook, and microsoft with Goldman Sachss Software Analyst heather bellini. Here at post nine, and thats after this break. Squawk alley will be right back. With facebook and microsoft leading the charge, google is getting serious about Virtual Reality. Officially launching a dedicated vr division yesterday. Its clear why. They have the potential to become an 80 billion industry. Joining us here Goldman Sachs and select internet analyst heather bellini. Really interesting report. Live events, engineering, behind it. A little bit of health care. With why dont we see a bigger breakout for real estate or cars or some of these other categories . You will. People like ford we spoke with them when they were doing this. You will be able to envision what that piece of tile might look like before it gets installed. Health care. Its really going to change, i think, many different aspects of our life and be completely disruptive, and we think were just 2016 isnt going to be the year that i think we see all this play out, but i think certainly over the next ten years how important is that product . You dont have to tether it to 1,000 pc. To the acceleration of this business. Once you see enough volume, the price points will eventually come down. We do need some things on the technological side to happen. We need better battery life. We need to be able to send these images in a wireless manner so you can have that experience where you have at least 90 frames per second so you dont get that motion sickness. All of that will happen. I mean, morris law. It will take time to get there. Eventually things like august mepted reality glass, google also announced that google glass will be reincarnateded at some point. Well see that happen as well. Youve got augmented reality and Virtual Reality. Its going to be hard for the phone to get replaced by an ar type device if you cant see your face, you cant see whats in front of you. We think theres going to be different applications where it makes sense for them to be vrfocused and different applications for them to be arfocused. It will also change advertising. Facebook already is starting to think about what are the advertising implications for a world where Virtual Reality is the norm. John mentions all the sectors potentially affected. Retail cars, real estate, health care. Is there one tt will become a poster child for everyone else . You know, look, i mean, i think things like health care, patient monitoring, being able to have an ambulance driver, be able to talk to a tier one Trauma Center as theyre on their way from an accident site. Things like that. I think well really hear about technology changing. Were going to forget that it was ever just considered a gaming cycle. Ville to ask about microsoft. A different firm upgraded them today. Several weeks ago you guys upgraded them from sell to neutral. You were right about all the details. What was the thing that has really propelled them in a way that before you didnt expect . It was the rise of sati nel and how he could turn them into a hope play versus the bamer area. The Senior Management team, amy hood. Weve always said theyve done a fantastic job. He has done a fantastic job helping to change the culture of the firm. Its groel. They are the second biggest to amazon in the aws, this public cloud market. I think what you know, when i look at it, while numbers for them have been stagnant to coming down for the last few years, what it really is the belief that this Management Team has what it takes to take away some of the secular risk they had before and position them to still be here 20 to 30 years down the reside. People believing in microsoft. A lot quicker than a lot of people expected. Heather bellini from Goldman Sachs. Thank you very much. Europe actually, europe is closed for the day. Lets get to simon hobbs and see how they did. Interesting that were actually cutting our gains as we move towards the close in europe. It had been boosted earlier by energy abated resources and a lot of stocks are still higher. The china slowdown is clearly cutting into germany. The Industrial Production figure that we had today disappointed a lot of people. November down 0. 7 month on month begging the question why the survey data continues to be so strong in the face of that. Very strong stock stories on the European Market today. Looks like in italy the government may have gotten its way with forcing some of the cooperative banks to merge. Bp apparently in advanced talks now. Theyre removing, of course, the mutuality, the vote restrictions, exposing them to take over the by the end of the were. Thats good news they should be doing deals. You can see the italian market is high. Many investors wanted that all along. Its good news moving forward and cost cutting. You can see how the stock has done badly, but up almost 10 today. On the down side today, one of the great stock market stars of last year, fingerprint cards, we look at this rocketed over 1,000 on that finger sensor technology. Not the ones in the iphone, but a lot of other people rsh actually down now for the year. Down, whoa, there we go, thank you very much, down about 30 . That star is falling as you can see. Meanwhile, just want to take you to this very complicated political situation in spain. The government sat for the first time today after those elections. Were showing you pictures, though, of the National Parliament where it would appear that the antiausterity party may be dropping its demand on katalan in order that it could do a deal with the socialists, form a Progressive Coalition that unseats the caretaker government of ra somewhere oy. If that happens, this means that spain has effectively moved against austerity. Guys, back to you. Simon hobbs, thank you very much for that. When we return, according to walt mossberg, apple and google should win the coming battle over the car dashboard. Walt will join us to explain why in just a moment. Dow down 43. Good morning. Im sue herrera. Heres your cnbc news update this hour. Lots of news coming out of the Jp Morgan Health care conference in san francisco, but none more remarkable than this. Thats athenas health ceo john than bush helping to give cpr and revive aing stricken man on the street. Bush saying he just did what everybody should be prepared to do. Hillary clinton releasing her latest tv ad highlighting her commitment for reducing gun violence in the u. S. It centers on her supporting president obama in fighting the gun lobby. An Oklahoma County sheriff was taken on a dramatic chase. The chase reached speeds of over 100 miles an hour. Then at one point the truck started on the wrong way on the interstate. Officers pushed him to the side of the road before apprehending him. Always good to see you, walt. On the dashboard, where he, maybe technically this should go to apple and google, but as you mention, i recently bought a toyota, and i was really eager to get some kind of technology linking in the phone in the car. Really couldnt get much good. I still got the phone mounted on the dashboard instead of anything really linked in to the screen. This is hard to buy. How are apple ask google going to change that . Well, thanks, john. I think you make my point exactly there. The car guys have tried in halfway measures for five or six years now to integrate android and iphones into the cars, and it really has been quite unsatisfactory in general. Say theoretically because some, like toyota, which is a great example, if you go to the apple website that shows all the companies theyve signed up, toyota is on there, but theres no models that have been deployed by toyota. Ford, like 18 month or so after the Program Began just at ces announced that they were going to start doing it with some of their 2017 models, but the very same moment announced a competing entirely competing platform. Theres a lot of reluctance to give up that screen in the middle of the dashboard to apple and google. Particularly because in their minds they know theyre going to build cars. As a consumer, the idea of paying extra for the phone to be integrated into the screen or i dont know. Its competing with the idea that i already have a phone that i can just mount right there. I might upgrade the phone every year. All it takes is a trip to the store. If i want to upgrade the technology in my car, where do i have to take it . How long do i have to do without my car . How cheap does this have to get, how good does the technology have to get before people want it . Actually, it varies wildly. Some of these guys are charging nothing particular extra for it. Some of them are putting it into those packages they sell. You buy the rearview the rearview camera. Im making this up or something. You dont have to rely on the car to be updated. I guess the other issue is people maybe arent switching back and forth between platforms as much as they used to, between android and ios. If you have a car thats got car play and you want to switch to android or vice versa on a car thats really great with android, but you want to switch to ios, well then you got a problem, dont you . Im told i havent tried it, some are columnsier at switching between them, but if you have a family and somebody one person has a samsung and one person has an apple most of the cars will recognize either and the correct thing comes up on the screen. To me its just like a no brainer, john. All right. Well, i guess thats better than what weve got today. Even in the new car only really one phone connects well vila blue tooth, and one has to do the oldfashioned plug it in. Up next, stocks once again giving away early gains. Dow down 51 points. Dow and s p down more than 5 for the month of january. Squawk alley will be right back. Coming up, heres a question for you. Why cant stocks bounce . Theyre trying to get in today with little success. Well dig into that question. Plus, gm raises its guidance. Its dividend and the buyback. Well ask activist investor harry wilson who once squared off with that company what he thinks now. Jim levanthal lays out his portfolio for the trader of the year competition. John will have that and more in about 15. Looking forward to it, scott. Now lets take a look at some tech stoxz on the move. In a departure from tech, chipolte stock is popping. Continued expansion in both sales and margins recovering after its Health Safety scares. Finally, netflix down almost 5 on itg report that subscriber growth is going to be weaker in the fourth quarter. A few interesting notes there. The alltime high. It hit the last alltime high on december 30th. Then once the new year came people had big winners, tax implications. You can put off that payment to the government for another year, and it was straight down hill. People have been watching it to hold 600. Then theres the quiet giant, alphabet, within 50 billion of apples market cap. That would be quite a stunning move and a reversal of the Largest Company in the u. S. If that actually happened. Yeah. Certainly would. Up next, its official. The st. Louis rams are moving to los angeles. Is that back to los angeles . Well talk about what it means for the nfl with super agent drew rosenhaas coming up next. Its hard to find time to keep up on my shows. Thats why i switched from uverse to xfinity. Now i can download my dvr recordings and take them anywhere. Ready or not, here i come whispers now hideandseek time can also be catchuponmyshows time. Here i come cant find you anywhere dont settle for uverse. X1 from xfinity will change the way you experience tv. Rams headed back to l. A. 30 of 32 nfl owners approve the fran highss relocation from st. Louis to los angeles. The San Diego Chargers had a yearlong option to join the rams. Joining us this morning is nfl super agent drew rosenhaas. Welcome back. Good to see you again. Good to see you. A lot of upset people in st. Louis. They have air right to be upset . Absolutely. You know, its always unfortunate when an nfl team leaves. Its a shame that the rams and their owner could not work things out. It will be a huge money maker for stan. Everyone wonder whether l. A. Has the fan base, right . The potential fan base to truly support a team. Do they or dont think they . They do. Its a huge market. I guess its the second largest market in the united states. The nfl feels that they can support not one, but two teams. Its probably a given that more likely more than likely the chargers will be there in a year. If not the chargers, the raiders. I fully expect two teams in the 2017 season. Its crazy to me that l. A. Has gone without a team an nfl team for so long. I mean, look at what theyve got nbawise. Other sports just giving this a little history. It seems like a huge gap in the market. Youve got probably six or seven teams in the midwest with the same population. Not having an l. A. Team is insane considering the marketability there and the money. For the nfl now to get back into l. A. In i big way, starting this season at the coliseum and then in inglewood in 2019 is going to just be huge for the nfl. Its a big revenue stream. In assive market. Of course, theyll support the rams. The rams have history there. If they get the chargers there, another Southern California team, great fit, different conference. If not the chargers, then they get the raiders. They are also in los angeles at one time. This worked out great for everybody in the nfl except for the st. Louis fans. Yeah. Of course, big nfl news. It comes on the heels, drew, of this past weekend. I know Antonio Brown is a client. Everyone still cant get over that. Vontez was hit with the threegame suspension. I can tell you that antony joe in the nfl concussion protocol. This is a system that is set up by all the nfl teams to protect players who have concussions. Antonio is being seen by one of the top concussion experts. Dr. Mickey collins today, and time will tell. I know the steelers are putting antonios health first. Theyre very protective of him, and im sure that everybody here will do the right thing with antonios health being the most important quality. Or most important criteria here. Drew, quickly if you can, what is the expected impact of this rams move on other l. A. Sports teams, on the lakers and the clippers even . Is this going to be a rising tide lifting all boats with the new sport coming in, or might there be negative effects . I dont think it will have a negative effect. Usually the big markets can support the different leagues. Baseball, hockey, basketball, football. Obviously the nfl is pretty much the big dog in just about every market that its in. I would say. I imagine the Los Angeles Rams will quickly become the most popular sports team in los angeles. Drew, its good to see you with so much. We need you for the whole hour next time. Drew rosenhaas joining us. My pleasure. Thanks a lot. The dow continues to fall here. Were down almost 100 points. Near session lows. Be right back. Gough down a lot of movers with some interesting microstories. Chipolte is one, for example. Prepting today giving an update on the progress theyre making trying to restore the reputation in the wake of the e. Coli news. Up about 6 . Maintaining that the new growth new store strategy remains intact, but also saying that customer awareness of the e. Coli issue, 80 . Lets get over to headquarters. Scott and the half. Jim and john and peelt and also with us on set is karen firestone. She is the ceo of arias asset management. Our game plan looks like this. The gm trade with shares on the move today harry wilson joining us exclusive as the Company Raises its guidance and buyback. The levanthal portfolio. Jimmy laying out his picks for our 2016 competition today. Will his strategy take him to the final top of the