Transcripts For CNBC Squawk Alley 20160407

Companies have to deliver for their employees, customers and shareholders every day. Im proud of all we do and how it figured into the moral fabric of america. It seems senator sanders is missing the point. So its directing commentary back at sanders. Completely understandable. I agree with every word. The rhetoric is just ridiculous. Ge is a great company. Great companies create enormous value for the world and Great Companies focused on the three constitue constituentcies so thats what we need more of in the world. Not fewer. Why has it taken so long for business to start to punch back . And does this kind of stuff play in peoria or has it made sanders a viable candidate . Whats making sanders a viable candidate and trump a viable candidate is a huge inequality developed in this country and corporations do have to account for that. Part of it is were taking high paying jobs and going oversaes and replacing them with low paying jobs. We need to pay people more in this country and about a 15 minimum wage is so your employees knocking yourself out for you arent poor. Its completely misplaced. The reason the jobs are considered good jobs is they pay well. You have folks like henry ford a long time ago saying im not happy with my employees being impoveri impoverished. Im going to pay them enough to buy my cars and we have manufacturing jobs paying 36 an hour. Theyre moving overseas because its cheaper labor but all the jobs that replace them pay 7, 8, 9 an hour. We need to raise those wages and, yes, that is going to come out of the hide of shareholders a little bit. That is okay. The really profound thing jeff just said is Great Companies serve three constituentsies. Next up today according to kara swisher yahoo expect 20s 16 revenue to fall by about 15 . Re code got ahold of documents that shows the financial situation at the company is becoming increasingly dire. Unclear if its that different from the guidance we have already gotten from the company but clearly it sets a tone that people that are looking at it realize how much work has to be done. Thats right. According to someone thats heard about the book the numbers look bad and sounds like from what kara reported were talking about low end of guidance. The Main Business is deteriorating. Sounds like that is on going. Anybody looking to understand it would also want to understand of the many different businesses theyre in, where are all the costs and where is the revenue . If youre thinking about restructuring thats what you have to know. The other complaint is we dont give a lot of details about those pieces. Does this take away credibility saying theyre not running an honest and efficient and speedy enough sales process. Theyre not really reaching out to the right type of buyers but this would say that the buyers that they are reaching out too. The buyers that might have considered yahoo arent necessarily enthused about it. Possibly although one would imagine if you were a buyer and you wanted a lower price you would run to the press to talk about how terrible everything is. These are not stupid people looking at buying yahoo . At some point we have to wait and see how it all comes out. The stock hasnt taken a big hit by the way. Kara is going to join us at the bottom of the hour with more on that story but theres a dynamite quote we talked about today. A perspective buyer tells her yahoo is like a delapidated house in Silicon Valley. Its the neighborhood you want to live in you have to buy it and fix it up. A lot of people believe that could be done. At least to create something more valuable than now. But its still going to cost you quite a bit. Thats true. Finally, the new trailer for star wars rogue 1 is out this morning. Heres a quick peak. Forgery of imperial documents, possession of stolen property, aggravated assault, resisting arrest. On your own from the age of 15, reckless, aggressive, undisciplined. This is a rebellion, isnt it . I rebel. Rogue one is a side story rather than part of the new trilogy. Star wars the force awakens took in over 2 billion worldwide. I think they want to avoid calling it a prequel but it does talk about the beginnings of the rebellion. It shows how many tools are at disneys disposal on this. Absolutely. Theyre cashing in on this. Lets hope it is a descent movie. But i thought we were talking about three star wars movies. Looks like a lot more than that. Hes probably pretty happy with the timing of when this came out too. What do you think about that whole management . That was very startling. He has been talked about for many, many years and some of the theories that are going around, Cheryl Sandberg wants the job. He doesnt have enough entertainment experience. It just dont quite jive yet. Its going to be very interesting when the real story comes out which should be soon. Sure you have great journalists on it. We will. What is disney the company . A Theme Park Company . Cable company . What type of expertise is the most relevant for the person that will be running this . The main engine is cable television, no question, but its a diversified Media Company. They layout and buy assets and create value however they can. If you were a board member would you want someone that green lit a creative property or do you want someone that knows how to have algorithms written . I cannot see disney moving into the algorithm business and fortunately the main consumers are people. We are story telling animals. Thats what disney is great at. You would absolutely want your ceo to have a real appreciation of that. That said, bob iger is great. Im not sure how much he contributed on the set of star wars. He knew how who to hire. Abc background. But theres great creative people out there. What you need is a leader. Bob iger is known for this. Appreciating that in a way that may have brought steve jobs and pixar into the family. Well they dont have problems any time soon on that front. Theres lite of runway there. Its good to see you as always. Meanwhile the markets have given up wednesdays rally and then some. The dow is down 173 points. Major averages down for their third day in four. The s p is down by 1 . The nasdaq by 1. 3 . Apple shares falling after btig cut its price target and its earnings estimates. The firm no longer expects apple to return to Revenue Growth this fiscal year. Thats a bold call and taking the stock down by 1. 5 . Mean tile wynn shares upgraded to out perform. They have confidence theyll achieve at least the bottom end of the earnings forecast. Stock up 10 on at least the bottom end. Amazing story. When we come back, Credit Suisse starting a 40 million venture to catch and help with traders breaking the law. Plus the latest on the eu investigation into alphabet. More of our exclusive with the antitrust commissioner over there and another turn in the battle over encryption with the white house refusing to back a law that can force companies to help break into lock devices. Well talk to a Company Whose business is trying to protect your password in just a moment. They have been cracking down on criminals and terrorists but now the company is looking to crack down on rogue traders in a joint venture with Credit Suisse. Theyre putting 40 million toward that venture. With us now is a Credit Suisse veteran. Welcome. Thank you very much for having me kayla. So wall street and Silicon Valley strange bedfellows. How did this come together . We have been working on a solution for a couple of years now and after the ubs incident where we had some pretty major rogue trading incidents, billions of dollars in losses, i was the head of compliance for Credit Suisse and the chief control officer for the Investment Bank and i would wake up and say how do i ensure that it wouldnt happen at Credit Suisse and i would always say how come people didnt see the signs. You would always look and say i always knew that something was up with that guy so we started to develop a solution whereby instead of focussing on trade and trade by trade, we focus on traders. Conduct and behavior. Using really super powerful technology that otherwise might be used for things like counter terrorism. Example. What are some of the signs. How do you quantify them . How do you measure them . Sure. We take trader related behavior, trade data, market data, risk data. We use the technology to determine how a traders behavior changed overtime. How a traders behavior is different than other traders that invest in the same products and we take sort of a toxic combination of events that might be indicative of fraud. Say a trader starts to come in on sundays and work late at night and that trader may srt to use off market trades and something to look at there. Theres one side of this that is preventing a loss for a Financial Institution but i have to think that a big part of it too is preventing missed conduct which has been one of the most expensive issues for wall street. How do you monitor someone that just goes rogue and is in a chat room and talking about fixing Foreign Exchange rates. Well, the technology that were building right now is very structured on more trade data but were building the capabilities to look at email. Right now we do use those capabilities for the purposes of recreating an incident. To the extent you have an incident already we can help a firm look back and say how did this happen . Whats the root cause. Including chat room email. How much does this result in false positives . You see behavior and the guy says sorry hi extra work. Hi i had to come in on sunday. Yes, the way that we manage that is we staff them with smart guys that are former traders. They kno exactly what theyre looking at. Where as today you have super advisesors looking for a needle in a hay stack, theyre looking at millions of trades. Theyre trying to find that one bad trade. Instead, were taking these really smart trader who is are making the technology smarter and smarter and making that hay stack smaller. Getting to that needle. Of course there will be some false positives but its Getting Better and evolving. What do you say to traders that already think its a huge headache. They dont like people looking over their shoulder. Dont treat me as a criminal. Does it inhibit retention . Hiring . Anything like that . No, in fact this is all data thats already available. Supervisors are tasked with looking at this information anyway. Now were zeroing in and we can put traders and supervisors back to work because the component becomes much, much easier. How do you get other Financial Institutions to sign on to this. You need clients. Well i think theres two major clients. One, the clients that actually want to show that theyre proactive and preventative in the space. Regulators seem to love this. The other clients are the clients that have a problem. They need to recreate the incident and figure out what the root cause is and they want to get better. Those arent clients that say we dont feel confident with Credit Suisse having all the data. We are 50 50 Credit Suisse but we are a new company and all the data of a client will stay within that client and we go to that client to look at that data. Is there any liability on your part if you miss something huge . Well, certainly that is something that we would always be thinking about but this is about detection and detection faster. So were not saying well prevent an issue completely but well find it faster and as theres detection and people are used to the fact that now somebody is looking, people who tend to create that kind of conduct wouldnt work at that firm that has this technology. A little bit of selfpolicing going on. Well be following you guys closely. Thank you for having me. The chief supervisory officer. Up next, the latest on the eus investigation into googles Parent Company alphabet. More on our interview with europes antitrust commissioner as squawk alley returns. Im making smoothies so, how can i check my credit score . Credit karma. Dont worry, its free. Hmmmm. Credit karma. Give yourself some credit. This is one of the most high profile and longest running cases for Parent Company alphabet. She already filed an official complaint against google for the comparative Shopping Service last year. She is in the process of reviewing googles response to decide whether or not to fine the company for prioritizing its own shopping products. Now separately the eu antitrust regulator is looking into the android dominance so i asked about both and specifically what is she finding and how far along is this probe . Have a listen. The thing that has concerned us is that in some markets android has become very, very big and we have people coming to us with concern saying that there is a risk and you can only have the operating system if you also have a full suite of google apps and it becomes a one way street. That were investigating and of course making it a high priority because these are fast moving markets and therefore of course antitrust have to keep up the momentum with the market as its moving forward. What about the formal separate charges that you filed against google and it comes to google shopping. We heard reports that it could be as much as 6 billion. Well, were not in that territory yet because were still in the process of analyzing the very, very substantial answer that goolg gave to our statement of objection. Lit take time an eventually we will get there and we have help from third parties in order to judge whether or not we get the answers that we would expect looking at our concerns. So that was the latest on the eus investigations and charges into google. We also asked for an update on the European Unions probe into apples tax practices in ireland. The stakes here are high as much as 8 billion in claw backs or even more. So i asked about her recent meeting with tim cook, apples ceo in january and where she was in this case. The investigation is advancing. New information on board and of course we talked with the company in order to make sure that we get things right. So its still very difficult to say when we will be done and when the investigation will be over. So we tried. No clueses there on exactly the time frame for apple which a lot of people are watching very carefully and while europe hasnt handed down any major punishments on these cases the apple decision is being seen as a wider political show down here between the eu and the u. S. Over whether her office is unfairly singling out u. S. Technology companies. Its an issue we talk about every time we have her on but its very much heated and its something she is going to talk about today. Certainly the list of targets has a lot of household names. Amazon as well. Facebook, starbucks, all of these. Sarah, thank you. Good stuff. When we come back, tesla announcing more than 325,000 people preordered that model 3. It equals about 14 billion in implied sales in the future. Plus yahoo shares down after that report from kara swisher talking about how much financial trouble the Company Might actual bli in. Kara is join going to join us live after a break. Good morning, everyone. Here is your cnbc news update at this hour. Lawyers for Sumner Redstone reached a settlement with an exgirlfriend over a lawsuit that challenged his mental competency. The terms require that a local 3rd neutral party oversee the daytoday care of redstone. Turkeys president says his country will not go through with an agreement to take back refugees from europe if the European Union doesnt fulfill its pledges. Some of which include progress in the eu membership negotiations. The lawyer for the paris attack suspect says it will take weeks before his client can be extradited from belgium to france. And a demonstration to at the announce Police Brutality in montreal turned violent last night. The event began peacefully but then erupted in violence when some protestors split off from the main group and began targeting shops and vehicles. Youre up to date. Thats the news update this hour. Lets get back downtown to squawk alley. Thanks so much back at headquaters. Europe is going to close in a couple of minutes. Simon is back with that. Theres a lot of red on the green there. We have gone further into negative territory. But the big issue is really again what is happening with the banks. We got the minutes of the ecb meeting from march 10. Remember the big one . When they double down on easing. Theyre basically opening the door to further rate cuts as being possible and playing down the negative effects of sub zero rates obviously on the banks so these banks are very fearful that rates could go further negative or at least have capital problems. The italian banks are down but Deutsche Bank also in negative territory. Today you have the Vice President of the ecb before the European Parliament delivering their annual report. He again said echoing they would do what is necessary. Theyre not considering helicopter money. Helicopter money is something as simple as writing checks to people within the euro zone. It is something that analysts are talking about and its something that they keep now questioning ecb bankers as they say we have further runway. The question is what will it be . The reason that the questions are so acute is that if you look alt how the asset markets traded in the months since the march 10 mee meeting, the market in general is down 3 okay but the bank stocks in just that month are down 12 . So massively down for the year and thats why it keeps coming back as an issue. The last thing i wanted to mention to you there was a referendum in the netherlands yesterday. They have actually rejected a trade deal with ukraine by 6 of 1 to 38 . Its not a big deal on its own. Turnout was low. 30 . Theyll get over it. The important thing to understand here is there is a very strong history in wrurp. If you ask europeans a question about the European Union they will flip the bird. Thats important because were heading toward the referendum on june 23rd on them exiting the European Union and if you ask them about the European Union theyll think this vote doesnt matter and it becomes a protest vote. Back to you. Well watch that. Thank you very much. As you may know by now kara swisher got ahold of documents that yahoo bankers gave to perspective buyers which shows the financial situation of the company increasingly dire kara says. Joining us is re codes executive editor. Kara swisher. Good morning to you. Morning. Strong piece as always. The question for some is how the numbers differ from the last earnings guidance. They gave guidance but often they try to surprise wall street on the numbers and it is interesting is all combined its showing a really they never put it all together showing the picture and one of the things thats most disturb as good the dot com going up as revenue is declining. So i had a secondary story today which makes the biggest point was alibaba has been paying fees to yahoo which means that their cash flow is going to go down. So even these numbers arent quite as accurate as they should be. So kara on the soft bank side the idea that that company would be a potential white knight to swoop in and buy back the whole of yahoo thats off the table or the company doesnt want to do that . I have pretty good sources and, you know, there was a story in the New York Post saying they have been in deep discussions. I dont think they even have the book. Have the book and they dont kind of thing. Theres certainly a possibility and listen its an obvious as verizon and several others but at the same time, its had this long and increasingly tense relationship with yahoo over the years. It started out great in 1956 but since then hes not been great at least from the japanese side. Especially most recently and i think that theres certainly always a possibility for somebody to come in but theyre not engaged in deep discussions right now as has been reported by one outlet but it doesnt mean they couldnt and doesnt mean that we dont know whats going to happen here but they certainly havent met in the discussions the way they met with at t and verizon and several others. Is there a line to be drawn between the numbers and the dynamic that youre reporting and meyers grip on her own job . I dont think anybody intelligent think that shell hold on to the job if a new buyer comes in unless they find a buyer that likes her. That might be an advantage for some buyer to say well keep you on but most of the groups sta starting certain players like to get in with media companies. Verizon might partner, theres going to be partnerships here i think. Youre going to see Something Like that. You could see Something Like that and the question is do they want to keep her in . I dont think i heard from anybody that does and everyone has their own people and have their own ideas of what to do with it. I make enormous cuts in yahoo and look at a total turn around situation. And others think its a big traffic driver and its on the internet for sale. The company when it gave its guidance and theyre trying to take nonstop comp expenses so overtime margins will improve based on what you saw is there any Silver Lining to the story. I keep pointing this out and theres no product. Where is the product. Cuts are fine but you cant cut your way in Silicon Valley. You just cant do it. You have to have great products excelling in the market and i dont think that you can point to a single product that does that. So thats the issue more than anything else. Theres no product that theyre selling for a great deal of money and doing great with. You talked to one buyer, unnamed, who calls it a dilapidated house in Silicon Valley. Needs a lot of work but if you want to live there, youll fix it up. What about yahoo makes it worth fixing . Its enormous and it has terrific assets. Their video assets are quite good. Most people have a lot of respect for those. It could be broken apart and sold in pieces. I could see a pe player buying it and reselling it. They could buy the parts it wants and sell off parts of it so theres all kinds of scenarios here. I just think the scenario of returning maybe theres a buyer that wants to keep yahoo as yahoo . A lot of people tried and tried diligently including Marissa Mayer and its not working. But there is an enormous amount of traffic and you have to buy six or seven other players to get to that level. Like a Media Company brings you a lot of player and content and the Yahoo Fantasy Sports stuff and yahoo news. Theres a lot of pieces of it. Theres great pieces of yahoo that work. They may not Work Together but they work. Kara, you mentioned media and there was this piece in vanity fair this week about the future and the development of yahoo as a Media Company, how they paid up for some of these high profile people and the future of some of those peel and some of those verticals is unclear. What do you think happens to the media side of yahoo . Well, i dont think its unclear. It didnt work. Thats pretty clear. We have all been reporting on that and Martha Nelson now running the media unit, she has been trying im not sure what she can do but a lot of the asset going on hiring katie couric at the magazines and katie is still there and doing a great job on the interviews by the way but i dont think shes happy and then all the Media Editors they hire to much acclaim and theyre all gone. So i think the question is what is is it going to go back to what its been . Yahoo news worked rather well and so does yahoo sports and some others so youre probably not going to see that great content creation in general. The glamorous deals that you saw before. Thats pretty much over. Widely read yesterday. Good to talk to you. Thank you. Todays is better around the asian assets. Thanks kara. Appreciate it. Well talk to you soon. Meanwhile, tesla announcing more than 2325,000 people preorderin that car. Not bad for a weeks work. I dont think anybody expected tesla to bling in more than 300,000 reservations in just one week but thats what tesla announced this morning. Lets put these numbers into perspective. 325,000 in one week. It slowed down over the last four days which is natural. You didnt have as much media coverage. 49,000 over the last four days. The implied sales if all 325,000 people follow through and actually buy a model 3 it will workout to more than 14 billion. Now after one week tesla says its working on increasing production plans. Take that with a grain of salt. We dont know what their production plans were originally so the fact that theyre saying theyre going to increase those thats encouraging but its hard to extrapolate much from that. Model three deliveries starting in 2017. This is what they are expected to deliver this year and these are primarily model s and then an increasing number of model x the suv between 80 and 90,000 units expected for this year and again the model 3 coming in 2017. Shares of tesla moving lower today but this stockad a heck of a run. Not only over last week but over the last month. Phil, keep us updated on that. On the tesla beat as always. When we come back today is the grand opening of the Wizarding World of harry potter. Were there live with an inside look in just a moment. But first, rick santelli, what are you watching today . Im watching the dollar yen and if ever there was a case study on unintended consequences, the dollar yen is that times ten. Why . Well talk about that and the big moves going on after the break. After posting the best day since 09 is bio tech coming back and what jamie diamond wrote about his companys stock performance. All that at the top of the hour. Well see you in 15. Meanwhile, harry potter opens today at Universal Studios hollywood. Julia joins us with a look at what the young wizard means for Nbc Universal. Well, Universal Studios launched the Wizarding World of harry potter selling out today even after they raised prices by about 20 for a one day pass to as much as 115 depending on the day. This new land is five years in the making. The final piece of an overhaul of 75 of this park over the last four years. Its part of a 1. 6 billion, 25 year renovation of universals west coast presence announced in 2013. Steve burke said the company underestimated the value of the theme park business. Now this kind of investment in correcting that and the company is already seeing results. The on going popularity is helping to drive a 27 increase in revenue for Nbc Universal parks this year. Though there are two rides, the wait is two hours long and its about more than the rides. Its about the experience. People are walking through this mythical town and buying butter beer and buying magic wands which they are waiving around and all of that, all of the additional sales is of course additional revenue for Nbc Universal. Back to you. Thank you julia. Lets get to the cme group in chicago and get the santellii exchange. Good morning. I tell you what, in Foreign Exchange the markets trend well. Maybe because the moves tend to be very macro in nature. After the crisis lots of things happened not the least of which is what we talk about much on cnbc and that is the whole concept where its the race to the bottom. Many economies are export driven. Germany, japan, china, so obviously a weaker currency has its advantages but the problem is when you try to control outcomes funny things can occur. Leverage. When a currency is losing ground quickly it becomes part of the finance structure for other trad trades. For the leverage of other trades. Many put it in the catch all category but the issue is when you come up to risk off scenarios you have large movements in markets where some of this creative structured finance has created large positions. These moves can be big and very counter intuitive to my main point which is better thy neighbor. This starts around 2012 but the key is look at how much thinness there is to the market. A very nice topping formation. The issue is as we breech 110 and today is the 5th down down, we have the 108 handle it makes getting down to these potentially very aggressive. Especially if you start to hit air pockets but it is a two for because youre seeing it on charts as well and that makes it more compelling. If we look at the dollar index, there were periods where we had some very big strength and not very much wood as we say in technicals. Meaning when you see this top start to reverse and theyre all roughly at the current levels that i made significant 110, 94, what happens is there isnt a lot below there arent a lot of positions back here to give liquidity to the market as it reprices and you really see it in aggressively. If you were to start at 2014, the slide to close to 140 was unbelievable and then the same congestion that we have on all three charts and now were getting above it and yen already sliced through it. Were going to test 85 or 81 in the dollar index the charts say its possible and it might be more important if it holds. But for now theyre telling you to buy a couple of bottles of aspirin if youre long the dollar. Back to you. Thank you. When we come back, the white house refusing to back a bill requiring Companies Like apple to help police crack down on encrypted data. Well talk about what that means with a Company Whose Main Business is trying to keep your password safe and secure, in a moment. [dad] i wear a dozen different hats doing small gigs,side gigs. Gig gigs. Quickbooks selfemployed helps me get ready for tax time. To separate expenses,i just swipe. Its one hat i dont mind wearing. [passenger] i work for me. And so does quickbooks. It estimates my taxes,so i know how much stays in my pocket. And thats how i own it. [announcer] stay in the flow with quickbooks selfemployed. Start your free thirtyday trial today at joinselfemployeddotcom. This morning, the white house is declining to offer public support for legislation that would empower judges to require Companies Like apple to help Law Enforcement crack down on encrypted data. Our next guest helps enterprise customers keep employee information safe. Some is the ceo of a software that gives a longing for web services. And its great to have you this morning. Thanks for having me. When your bread and butter is folks passwords, that encryption is mandatory but how have you watched and formulated your own thoughts on the current public debate over encryption. Its been pretty interesting. Our customers are thousands of enterprises around the world and its not just encryption. Its security in every facet. From how the processes and the on board and off board employees to how their data is stored and which services they select. Theres really good arguments to be made on all sides of the issue and we listen to customers and help them tackle the challenges theyre trying to tackle and do the best they can to fulfill the objectives. What are customers telling you they want encrypted now. We got news this week that messages sent over whatsapp are now encrypted end to end. Were we moving in that direction anyway . The main thing that customers want is and this is everyone from the c suite and the board level all the way down to individual employees and customers they want control and they want choice and they want the ability to take their Technology Landscape and really shape it to their objectives so that means different regions around the world for example, you know, you cant say theres legislation in one area because every region from europe to the United States has different regulations and compliance requirements and customers want control and flexibility so they can make their objectives while staying compliant and secure. Todd weve had a week or so to kick around this sort of weird ending to am versus fbi but did anything get answered in all of that for you . I think the biggest thing that got answered is that its very complex and you have apple making great cases for kind of the consumer and for, you know, strong encryption and people from the government talking about the government priority and the needs of surveillance and so forth and whats really come out of it is that is very complex and the ending is not i think a final resolution but theres more discussion on this debate going forward. The next time a similar situation comes up, will it look the same or will the evolution of encryption be different and hence the debate will be different . I think that its going to be case by case and i think a lot of these things are going to be depending on the details of the specific situation. So i think were in for more of the same with some refinement around the details of the cases. Is there any room for the rule of law in encrypted data . Should there be some situation, rare as they may be that the government should have access to encrypted data . Theres always rule of law. Do you feel that the innovation and the technology outside of the u. S. Has been able to out pace what companies here in the u. S. Are doing giving the Government Intervention . I wouldnt say, i mean, the u. S. Technology is the best in the world but i would say its more equal across the world so a lot of times the technology and encryption especially was really ahead in the u. S. And now i would say its more equal around the world with open source and the tool kits available and one of the big things about the debate is the world is flat and the u. S. Or companies in the u. S. Cant behave like they control all the technology and all the keys to the kingdom like in the past. Its hard not to notice now. You go on your phone and if you use whatsapp theyre promoting the encryption as youre using the product. I definitely think that like i said in the beginning its Customer Choice and customers want the prerogative to control their Technology Future and theyre reacting to customers and one of the interesting parts of the debate is as governments act governments have to be aware of the choice that the customers of the organizations in their nation have, right . The customers have choice and companies have to be open to that choice and make technology that will make them successful. We appreciate your time this morning. Thanks for having me. Its great to be here. When we come back, rough day for the marks. Worst in about a month, month and a half. Dow on track for the biggest one day drop since february 23rd. Back in a minute. You may think you can put off checking out your Medicare Options until youre sixtyfive, but now is a good time to get the ball rolling. Keep in mind, medicare only covers about eighty percent of part b medical costs. The rest is up to you. 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These are the only Medicare Supplement insurance plans endorsed by aarp, an Organization Serving the needs of people 50 and over for generations. Plus, nine out of ten plan members surveyed say they would recommend their plan to a friend. Remember, medicare doesnt cover everything. The rest is up to you. Call now, request your free decision guide and start gathering the information you need to help you keep rolling with confidence. Go long™. Flight to safety today. Dow is down 15 2. Watch the ten year toying around with 17. Lowest since march 1st or so. As the bund eyes zero. One deal we didnt talk about, verizon digging its heels into mobile video with a 25 stake just below that in Dreamworks Awesomeness in tv. Its 650 million. Verizon also got an upgrade today. It will be interesting to watch as their ambitions evolve. Meanwhile, bio tech and health care someone of the best performers yesterday. Underperforming as the flip flop goes back and forth. You see a lot of volatility in that space. Lets get back to headquaters and the half. Welcome to the halftime report. Btig cutting his price target. Slashing earnings and worrying that the pace of iphone upgrades is slowing more than expected. With us for the hour today lets get right to apple shares moving lower this hour. Walter joins us today live from new york city. Welcome back walter. Scott, how are you doing . Im good, thanks. Just as analysts in the community that youre in seem to be getting more optimistic you go