Transcripts For CNBC Squawk Alley 20160804

Well as eric jackson of Spring Owl Asset Management and an outspoken critic of management teams, including yahoo and viacomm. Earnings in revenue beat expectations. A big win for Ceo Jack Dorsey who, of course, runs two companies. The stock of square down more than 20 so far this year. Prior to todays move. I did speak to dorsey last quarter about the path to profitability. Square has been a very strong and really predictable business for us. And were really happy about that because we feel like we have a real understanding of how the business grows and what it takes to move it forward and can really understand what to do next. Predictable, of course being the keyword. How much of a victory is this quarter for jack dorsey . Short term its a great victory, longterm its a problem because square catches mass of competition from everywhere. And not only is card readers now, you have apple pay and new infrastructure. A lot of new technologies that could be developed that could really hurt the company in its core products. And then the other business getting into also us is september to believe major competition. So im not that optimistic as just because of one quarter. Mike, a lot of people look at a move like this, up 12 for a stock thats been beaten down and say its probably just short covering. Hold up of that is this . Short covering is always an element of when you have a better than expected result in a stock that people really do did have a lot of ammo aimed at, i think. 14 and change just a couple of few months ago. So its not as if this move today really undoes a lot of concerns, but it definitely was better than feared and at least kind of showed some fundamental momentum. And its exactly eric the opposite move we saw in twitter after the quarter which was done 14 , but this is the first time that analysts did not have any questions about the way jack dorsey spends his time and how he runs two businesses on the call. Well, investors and analysts are funny that way. If you surprise expectations, you beat expectations and you put a few quarters together like that, saw right with the world. People want to believe in jack dorsey, people want to believe in square, and so, there was no question this was great quarter, great results, if you can keep doing more of these, putting more of these on the score board, whats not to like . I like this, i like this company, i like this company for a lot of reasons because its going to own the Small Business world which its doing quite well in and even if you think its going to struggle competitively in the future, dont you look as a takeover target . Dont you have to look that way . A year, two, three from now, somebody whether its apple, american express, paypal, you name your guy who wants to take it out. Well, they would have bought it by now if they were interested. Its not as i maizing technology for apple companies that are benefit themselves. Yes, theres an issue of getting the card readers everywhere. But thats what it is because some of the other Large Companies have others to take advantage of, apple really now has massive distribution and with apple pay, its now done deals with all the major credit card playerers and with the banks. Many other Big Companies coming in from a different perspective and if square was applied, it would have been done by now. Thats my view. Interestingly on the call they talked about the fact that they have larger merchants signing on, Institutional Investors participating in their lending product which is up sharply and they will be profitab profitable, at least on an adjusted basis this year, mike, thats got to count for something. It means that, you know, they are potentially gaining a little bit of share in this very crowded space. And i guess theres excitement over the sort of contacted solution for the credit cards, which has been a point of frustration for the entire industry and consumers everywhere. Meanwhile, we have a strong game for viacomm. Comes ahead of a key ruling tomorrow where the red stones lawyers must defend his move to oust five viacomm directors. On the flip side, 21st century stocks, that stock falling on a miss on revenue. Profit did top analyst estimates said the Company Wants to protect fox newss unique and important voice. Eric, lets start with viacom, this is a company youve been critical of. It was thought that the quality of the quarter that the company put up would possibly shield them from having to ink a settlement sooner. What happens now . I think theres still an enormous heat on phil leap. They preannounced a bad quarter a few weeks aegs. They beat those lowered expectations. If you compare this quarter to a year ago, period, its obvious this kbaen is still in, you know, difficult position and on the call, tom the coo indicated there was a chance that revenues could drop mid to high i thinkle digits next year and also pointed to the leverage ratio which is a big concern for investors as being high over 2. 5 times. So theres still pressure and to me to listen to them talk on the call. You think nothing was wrong. He was boasting about love and Hip Hop Atlanta being a juggernaut for viacom. Who needs walking dead and game of throws when you have love and Hip Hop Atlanta. Dont you think to yourself, okay, something is going to happen in terms of a catalyst until the next several months, new management or ultimately its a takeover target . Are you looking at the operations of the business anymore . As an investor. No, i mean, you know, you listen top phil leap and you say whats the end game here . Obviously how much its going to take for you to leave this company basically is what it comes down to. There were settlement talks reported on last week that apparently broke down. I would expect that those would continue. Hes got to go. I mean we said in our 99 page report, this is a bankrupt culture thanks to him. So yeah, something will happen, new leadership or into cbs, both of those could be wig bins for shareholders and so thats why we are in the stock and why we think there is still a lot of upside here. Be back on the story of 21st century fox, executives on the call last night talked about moving quickly to stem the fallout from the roger ailes situation. Im wondering, on the report card for crisis management, what grade would you give fox here . They havent done it too well. The media followed this one immediately and take an lot of action. Done a more severe cleanup. Everyone now wonders about whats really happening within fox. So i dont give them high marks. But nevertheless, i think fox has a very loyal, Stable Customer base, so theyll get over it because the people they are appealing to watch their channels religiously. So they can survive it. Eric, you think the fact that the murdochs talked about the fact that the voice of fox will not change, is that meaning that there is going to be inherent stability in the business to you . Well, i think so. I mean obviously thats been the big moneymaker for them and the company, and so it makes sense not to change it. I think the most promising part of the call last night for them was that the murdochs indicated that theyre going to fulfill their remaining stock buybacks, but they hinted theyre going to slow those in the future. And instead reinvest in the creative part of the business. And i think thats, thats note worthy. I think thats unique if the immediate world, thats the right thing to do. Weve all seen across a bunch of companies, not just media, theyre that theyre waning shareholder and buybacks as pooded to recreating the business. So viacom and other Media Companies would learn a thing or duofrom that point. Mike, theyve been a buyback machine though. Theyre raising the dividend too. They are, and i think there was sort of a modest but disappointment that in fact they didnt down scale a little bit their buyback intentions. I think off lot of investors in the big old media stock is that just one capital return, steadiness and capital return. Even though eric says theyre going to reinvest in growth, not every investor is it reinvesting growth or take somebody out . Building a device. Thats what this is and where you think they do it in a disappointed way or not is the question. Finally, tesla shares, take a look where the they are this hour. Theyve been flirting with the flat line throughout the morning. Revenue missed analyst estimates but ceo elon musk still optimistic about the second half of the year, take a listen. Reporter were aiming to do internally is to do better than 2,000 in sales and deliveries. And combined estimates. You know, i feel fairly optimistic about achieving that goal. Yeah. I think so our core business is actually doing quite well. We are reminded every quarter that this is a company that operates by trial and r ror, musk saying he was in production hell until june. If youre an investor, what would you take away from the call . Well the call sl saying the right thing, youve got to realize that this is the offer that we talked about about square. Now elon has a vision, he has a longterm strategy. Wl his announcement in massive plan, if you think about it, he could only be in the Energy Industry. Hes a tesla consumer. I know what hes talking about. And i would be the first to line up to buy his new product. Very bumpy ride because thats the way it goes in the tech industry, especially when youre innovating like he is. But longterm, i see an amazing future with tesla. Because i looked at the Longterm Technology brand. Eric, the company did reiterate 500,000 vehicles in 2018, but thats a milestone thats quite a ways away, what does tesla have to do between now and then to shore up vers confidence . Well, theres going to be a big gap between now and when they deliver the model three. Some time next year, we dont know exactly when. And they have a history of slipping their dates. They spent a lot of time on the call talking about production, they didnt spend a lot of time talking about demand and basically theyve had two quarters in a row where they havent met vehicle delivery number expectations. And yet, they are still predicting delivering Something Like 50,000 cars between now and the end of the year. That would be sort of a you know, considering what the trends have been, an astronomical jump in demand. So, you know, were skeptical, were short in the stock and we think if theres no risk to the downside here than upside, especially over the next year. They also dangled the carrot of the model live of those playing at home, pa spells out sexy, very muskesk, is that enough for investors . Well the investor is short term, this is why my friend is going to lose his shirt. Its like the short sellers had, you have to look at grand vision, these people are talking about technologies that could change the world. Were talking about impacting the transportation industry, impacting the Energy Industry and on the side, elon is actually on mars. So thats a vision and the amazon and the facebooks now. I want to look, i want to root for elon as much as anybody, look at the sew already city situation, have to raise a ton of money at some point. So potential regulation coming up with the idea of automation, he says were going see a fully Autonomous Vehicles that not only blow our minds, but blows his own mind. That may be coming. Dont you think well see head wind before we get there . The question is whether you can get through those wins. Yeah, short term, lots of bumpiness. Longterm, youre looking at just like amazon, we were pessimistic, look at the tlerm vision that they had. Facebook is the same story that longterm investments they were able to manage their way to it when youre producing hardware like elon is, its hard. But longterm, he could, you know, really dominate many industries, and this is why i consider the lot more value able and the stock price shows. Short term not, i agree. Its always about balancing a longterm vision with a short term reality. Well see how this plays out. Thank you both for joining us today. Lets get a check on the markets here. We have most markets holding pretty steady it looks like, dow barely up at all, about the flatline and treasure yields olding steady and oils as well. Waiting patiently for the jobs number tomorrow. After earnings and revenues both my the estimates. Expresences along with lower revenue from hotel books. And when squawk alley comes back, Hawaiian Banks opening. The companys ceo will join us live. New polls show a big bounce for Hillary Clinton after the democratic convention. But can that bump last until november . And nice game for shares of godaddy, revenue beating estimates. The companys ceo will join us in an exclosive, thats later on this hour, squawk alley will be back in a moment. Hey gary, what are you doing . Oh hey john, im connecting our brains so we can share our amazing trading knowledge. Thats a great idea, but why dont you just go to thinkorswims chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders . I know. Your brain told my brain before you told my face. Mmm, blueberry . Tap into the knowledge of other traders on thinkorswim. Only at td ameritrade. First Hawaiian Bank, its the largest bank ipo in nearly two years. And they are priced at 23 a share, that was the top end of the price range for the company. Joining us now from the nasdaq and first on cnbc interview is bob harrison, the companys chairman and ceo. Bob, welcome and congratulations on your stock pricing at the high end and just about to open, people are wondering though, what is a nice bank like you have in hawaii doing being owned by frances bmp in the first place . We got a great relationship for many years. So the last 15 years, theyve been a terrific owner of ours. Its mainly bmp i believe that is selling shares in the ipo today. Whats the reason for that . Is it just a strategic need to sort of realign its portfolio or does the bank need capital . You know, ill let them speak for themselves, theyve been for 15 years now and really let us run the bank as we see fit. You know, i see you wearing a lei right now, youre probably one of the coolest heads in midtown for that fact. We think of hawaii as surfing, talk about where your demand is coming from, where people are borrowing and the state of business in hawaii. Sure. Hawaii is doing very well. We have a core market and also operations, but the economy has done well for many, many years, and really underpinned by three things, tourism, of course, the military, and government as well as construction and real estate prices. Bob, you know, i wonder what your Growth Prospects look like given that off strong market position already in hawaii. You have more than a third of the states deposits for example. What is the Growth Outlook look like . Ive with been able to grow organically for a long time. We feel the strategy and taking care of customers is really the difference that allowed us to be successful. In fact, were 158 years old this month. Youre the first bank going public in nearly not first, but the biggest going nbl near if two years. A lot of banks have said, you know, were going to hold off for now or the demand isnt there. What were investors telling you when you took your story on the road . We really enjoyed meeting with a lot of new people and we really have a great number of successful media. And i think the what we seen is a really good response. So well see where trading is later today, but were excited. Life as a public company, as a ceo and chairman, how are you preparing for that . Well, ive been getting not a lot of sleep, i think thats the first criteria and spending a lot of time on arps. I think with those two out of the way, its only upside from here. Interestingly on the campaign trail, here in the continental u. S. , weve had one side of the aisle talking about how the economy is doing so poorly that it needs to be shored up, on the other side, the last eight years have been the best in recent memory. Since you are approaching the u. S. Economy from sort of an outside observer standpoint, what are your thoughts . Well, i think the economy and focussing on hawaii has been very strong. About 60 of our business is coming from the mainland u. S. And about 40 from the international locations. Probably about half of that 40 from japanese travelers. So we really see a nice balanced growth in our economy. And i think the National Economy continues to do well. Are there any policies beyond a simple rate hike that would make your business better . All bankers were looking for your option, but no, i think we work well with our regulated and dont see any issues with that. So business as sushl fine. Well bob, we wish you the best of luck today when you open for trade. Well keep our eye on the shares when they open. We appreciate your time this morning and congratulations again. Thank you very much. Appreciate it. Bob harrison from First Hawaiian bank. I think we should all be wearing leis this morning. Major setback for intel and plans for wearable tech. The full story when we come back. But whats it cost to modernize a School District . Whats Critical Thinking worth . A basketball costs about fourteen dollars. What does it cost to build a new sports arena . Whats team spirit worth . A Telecommunications System isnt cheap. Whats it worth to talk to your mom . Whats the value of one more tree . A forest . A walk in the woods . Whats the value of art . Art open to the public. The value of capital is to create, not just wealth, but things that matter. Morgan stanley. Capital creates change. Welcome back to squawk alley. Talk about too hot to handle, intel recalling all, repeat all of its basis peep smart watches because of overheating issues. Customers have been complaining of discomfort, blistering, even burns. The company tried to fix that with Software Updates but nothing solved the problem. Intel acquired the Company Behind the smart watch back in march of 2014 for a reported 100 million. The watch failed to capture even 1 of a wearable fitness tracking market in the two years it was on sale. And youre look at shares right now of intel, up 27 cents. Do they know how many are out in the market . I was wondering if this measure was just a survey. Lets see how many people actually bought one of these. Ive seen a couple out in the wild. Not a lot of luck with consumer hardware. Internet of things the internet of things is what theyre going for. Here we go. So if you have a peak smart watch and the irony being Heat Management is one of the selling points. Yeah. Must not have intel inside. Thats right. Well next, when we get back, major bump for Hillary Clinton in the polls after last weeks democratic convention. Can it last until november . Advisors will join us next on squawk alley. The heirloom tomato. When you cook with incredible ingredients. You make incredible meals. Fresh ingredients, stepbystep recipies, delivered to your door for less than 9 a meal. Get 30 off your first delivery blueapron. Com cook. Good morning once again, everyone, im sue herrara. Fierce fighting between Libyan Government forces and the Islamic State on the city on the libyan coast. The government using tanks and machine guns in an attempt tom dislodge the militants and made it their main base of operations in the country. The aerial fight against zika carrying mosquitos has begun in florida. The first plane carrying insecticide left a miami airport earlier this morning. That plane will spray a tensquare mile area in miamis winwood district. Power outage left much of anaheim in the dark last night, including disneyland. Park goers posted to social media. Thousands lost power, but it lasted less than an hour. And the Oklahoma City thunder couldnt hold on to kevin durant, but star guard Russell Westbrook listen sticking around. He accepted an extension worth more than 85 million and expected to sign that deal today. Congratulations to him. That is the news update this hour, lets get back downtown to squawk alley, kayla. Thank you, sue. Markets in the uk and across europe are about to close in a few seconds. London leading higher after the bank of cut Interest Rates for the fist time in seven years to try and stem some the of the damage postbrexit. Lower them to 25 basis points. Stimulus measures include expanding the banks bondbuying program by about 60 billion pounds. At a News Conference in london, mark kearny saying the bank would take quote whatever action it needed to achieve stability in light of brexit. Party also warning that offsetting the Economic Impact of brexit would be challenging. We can immediately or fully offset the Economic Impacts of of a large structural shot. However, Monetary Policy can support the necessary adjustments of the uk economy during a period of heightened uncertainty. Although the central bank hasnt yet had to step in and intervene in the currency market though, today the pound sterling sinking to an eightday low on that rate decision. The yield on the ten year uk guilt also falling today. Look at where that is. Currently at 0. 65 on the ten year gilt. Despite both moves have been moving higher today. Led by Standard Chartered up by about 5 . Lloyds at loan one down by about 1. 5 . Andrew. Lets talk about politics. The postconvention bounce and lead over trump, john harwood has more on this story, john. Reporter andrew, donald trump and his aids say everythings doing fine with the campaign. Donald trump said weve never been more united to a rally audience in florida yesterday. If you want to know where other republicans are panicked about the state of the campaign, take a look at these polls. First of all, National Poll from fox news postconventions, donald trump is down ten points to Hillary Clinton. 49, 39. Then go to the state level, these are swing states, states that donald trump is targeting, New Hampshire, hes down 15 b s percentage points. Look at a poll in pennsylvania, hes down 11 points. Go up to michigan, detroit news poll, hes down nine points. And beyond those numbers in the president ial race, youve got the down ballot races republicans are concerned about. That New Hampshire poll shows kelly ayotte down by ten points. Governor hassan there, thats a state that republicans desperately want to win to hold on to the senate majority. Pennsylvania, pat tumy is behind democratic challenger katie mcginnty only by a point, but that is an indication of the potential drag of a significant donald trump deficit and right now, we dont know that these numbers are will hold, its very soon after the conventions, things may settle back down but the numbers now are consistent with republicans losing not only the senate, but possibly also the house. Guys. Okay, thank you for that, john, well continue the conversation. Were joined by former Senior Advisor to the Obama Campaign and also Cruz Campaign spokesman, rick tyler. Rick, you first, try to understand this, lots of talk about about an intervention that is supposed to happen. People inside Trumps Campaign saying its not really happening. Who knows. This is Newt Gingrich, he cant learn what he doesnt know because he doesnt know he doesnt know it. Is it worth even trying, rick . Well, its always worth trying. And donald trump would be wise to listen to Newt Gingrich and giuliani. My understanding is that both of those gentleman had a conversation with trump. I dont know if there was one singular meeting. Its not particularly unusual that people would try to win in the campaign, but this seems to be more than that. It seems to be a course correction. And so look, this campaign is in real trouble. Youre seeing donors now looking at the senate, the rnc should be looking at how theyre going to keep the senate as a priority because the Trump Campaign and look, i think this trump is probably ir remedial and will not change course, hes incapable of changing course. Hes not proven that he can show discipline on the campaign trail and thats why youre seeing the poll numbers. And they are likely to hold if he doesnt change. Rick, before i go to ben, theres been an idea floating, and i know Trump Supporters will say that somehow he will decide on his own to withdraw. Do you think thats even plausible and what does the rnc do . It seems unlikely. There is a way to replace the nominee, its under rule nine. It is unclear if they could intervene and replace him. I think he would have to do it voluntarily. Rules are like legislation are written and they can always be stress tested, but in all likelihood, donald trump will remain on the ballot. The question is whether hes going to drag the whole ticket down in which case protecting the snats and house races are going to become extraordinarily expensive for the Republican Party. Now the democrats have smelled weakness on the other side. And there is some sense that Hillary Clintons camp has been making calls to republicans to see which they can win over. We saw one high profile defection in meg witman this week. Who else is up for grabs right now . Off republican member of the house recording an ad saying hes going to stand up to donald trump. Another retiring member from the state of new york making clear hell support Hillary Clinton over donald trump. A bunch of former National Security officials saying they dont want Donald Trumps hands on the nuclear button. Something hes been callous about throughout the campaign. I think theres a real opportunity to reach moderates, to reach republicans. If you look into these polls, donald trump has identified his path to the presidency as being through the rust belt. The polls show hes down about ten points in the states of pennsylvania and michigan. Hes losing many of the reagan democrats that went to the Republican Party while Ronald Reagan was president. And ben, let me take the other side which is to say, maybe its great that shes probably reaching out to republicans and theyre taking her side, but when you see the billionaire class, if you will, whether you put meg witman in that class or Michael Bloomberg or the Hedge Fund Manager announcing his support for Hillary Clinton at 24 hours. Theres a whole group of people in this country if thubl sort of antiestablishment thing thats going on that may actually look at this and it could backfire, no . Well, i think those are the only, not the only people who shes had supporting her. Look at the convention, the most compelling testimonials for Hillary Clinton were the people who behind the scenes shes helped over the years. The 9 11 family that was devastated by the attacks oh no, im not i agree with you, im not suggesting that theres not support from her in other areas that are beneficial, im wondering whether the public display of support from what might be described as the establishment, wall street billionaire class helps her or hurts her and whether she is would be better off getting their support and telling them to talk about it in a closet somewhere . Well, i think people like Warren Buffett are very well respected. And hes made clear that his secretary shouldnt pay higher taxes on her income than him. So the question is, ideological alignment, and i think shes picked people like Mike Bloomberg and Warren Buffett who you are very well respected by the public to make that case. Rick, just to build on andrews question there, you know, a month ago, the big question was could Hillary Clinton appeal to the people to her left, the Bernie Sanders supporters, does this kind of Movement Toward republicans and moderates jeopardize that group for her . Well, look, she seems to solidify her base. I believed that Bernie Sanders supporters might look at donald trump, i dont believe that today. I really dont think they have a choice other than to even not vote or vote for Hillary Clinton. Shes making moves to the right. I do think andrew is right, that being attracted to the billionaire class has an antiestablishment backlash, heres the problem. What would we be talking about today is the 400 million that it was sent to iran the same day the hostages were released. Wed be talking about the fact that Hillary Clinton said that the fbi said she was truthful and the fact that they did not. Wed be talking about the emails that are missing and the one thing that could happen in this campaign to really shake it up is if there are more emails to drop and depending on whats in those emails. That could change in the direction of this race. Other than that, i think its going the way its going. Well speaking of emails, rick, Senate Democrats have asked reportedly asked your former boss, ted cruz, to take up a hearing on trumps comments about russia suggesting they should hack into clintons emails and find all of those missing emails. Whats the likelihood he takes that up . You know, i think its fairly unlikely. I mean, in a sense, i mean its a serious issue. I dont know that trump my only opinion is that i dont know that trump understood what he said what he said, how serious the issue is. I think he was being a little bit, as he said sarcastic and flippant, but its dangerous to be sarcastic and flippant about those things. Putin is watching. Putin is already taken crimea, something that in ukraine which trump seems to be unaware of. I think putin is looking to gain more territory in ukraine and elsewhere, and hes sending direct signals to the russians that he would not stop them. And that could be very dangerous. Final question for both gentlemen, paul ryan in all of this, getting sort of stuck in the middle. If youre paul ryan, what do you do . At this point . Do you withdraw your support from donald trump . I dont endorse. Thats the only thing left to be done. He make clear hed speak out when he disagreed. Donald trump attacked a gold star family. If thats not reason enough to unendorse, i dont know what is. Well paul ryans district is in in wisconsin, donald trump lost that district by 19 points to ted cruz. Paul ryans numbers there are very low. Look, probably helped him to have donald trump say he wasnt going to endorse him. Heres the problem with conservatives like me, if we win the white house, what do we get . We won the house, we didnt get anything, won the senate, we didnt get anything, winning donald trump, whos in a fight with the speaker, what does that say about the prospects for a conservative legislative agenda going for . It looks like well get nothing. Thats not encouraging. We have to leave the conversation here, appreciate the time, thank you. Thanks. All right. When we come back, shares surging after the rest of the year. The ceo will join us in a cnbc exclusive. First, rick santelli, what are you watching this morning . Im watching yields in every sovereign move down. Somewhat the effects, the strangle hold central bankers have on markets. And in this case, bank of england seems to be causing a free for all thats going on. Were going to talk about everything that mr. Kearny did today and what it may mean after the break. Its me, arty come see what i collected from the creative galaxy in my idea box. Would you help me make art . Each one of our journeys keeps us young hey, i have an idea well never get older. Arty go be amazing amazing announcer give your Cardboard Box another life. Huge victory for bill ackman. I spoke to the Hedge Fund Manager a short time ago. Hear what hes saying. Big call on a stock weve been telling you about now for a week. You wont bereave why this analyst is getting on board now and on the eve of the olympics, halftime competition between underarmor, nike, and iowa dees who takes gold, silver, and bronze. Sounds good. Meanwhile look at shares up First Hawaiian which just opened for trading. Priced at 23 a share. That was the high end of the range yesterday after the close. Stock is currently up close to 5 after the open. Just a little bit over a dollar and change. Remember they raised about 485 million to honolulu based bank used to be owned by them and it is all shares being sold by them in todays offerings, still stock up 5 . And the Redstone Family and viacom soap opera continues. National amusement just out with a blistering statement and we have more on that story, julia. Hey, andrew thats right, national musementings which is owns a majority of viacom shares coming out with a criticism of the companys earnings which were out this morning. The company reporting a 28. 5 decline in earnings per share. The statement says, quote, the performance continues to continue the highlight to need the leadership. The company is National Amusement have called for. In recent years, the senior manager overseed the Revenue Growth earnings, operating performance, Financial Capacity and shareholders returns. Rarnging at or near the bottom of industry across many of these metrics. Now the twopages release details many of the areaings in which they have fallen short of the media space. I want to highlight one key area here where they single out the ceo, this is all part of the many lawsuits that are job going by sherry and some of the red stones trying to unseat police as ceo of the company. They say he is the third highest paid ceo in the United States and among the worst as measured by paid for performance including his prenegotiated golden parachute. He stands for half a billion dollars for tenure that is seen a market decline of one of the nations greatest Media Companies. Three laults ongoing. Theyre all going to be heard in the month of october. Certainly a battle thats worth watching, back over to you. Thank you for that, julia. Interesting. Crazy story. He has been handsomely paid for a long time, thats not news, its only about ammunition because now theyre sparring. The question is ultimately when this all gets resolved. This didnt seem like a step toward a settlement. Exactly. Which is some of the reasons. Yeah. Anyway, when we come back, more to talk about. Strong move for godaddy. Analyst estimates go daddy ceo blake irving is going to join us right here on squawk alley when we return. Your Business Needs Better Technology to drive better performance. So you need it to be reliable and fast. Really fast. Introducing the comcast business Summer Savings event. Fast Internet Speed to drive performance, plus cutting edge wifi for your employees and customers, and voice mobility so your calls find you wherever you are. Get some of our most advanced products at a great price with over 500 in savings. Call today and ask how to get these savings plus a 250 prepaid card. Comcast business. Built for business. Go daddy reporting a narrow loss with a revenue rise of 16 in their Second Quarter earn pgs. Take a look right now at the stock. 3. 52, up 12 . Thats great. The company is getting strong guidance going forward. Lets take a closer look with go daddy, with the ceo, blake rks iving, thanks for joining us. Thanks. Tell us whats going on here, you blew it out, seen the numbers, and more importantly youre guiding to much better numbers than people expected. Whats changed . Nothings really changed, andrew. We did, we delivered above the high end of our guidance. We raised the guide towards the end of the year. The business and strategy is working. So weve entered 56 new markets over the past three years. And ive really characterized it as weve been working hard over the last three years to build an international, Global Business thats targeted at helping the very helping the Small Business and that strategy is working really well. Now its time for us to start growing and setting the foundation and building on top of that for the next three years. Weve literally doubled revenues and doubled our earnings over the past four years and were setting out to do that again for the next four years. Flesh out that strategy about serving Small Businesses in various ways. Is that the way you will continue to pursue that market . We believe theres a very Small Business person out there, you can call them somebody thats got less than five employees and they have been served by companies that gave them Enterprise Software or Consumer Software and said this is fine for you. Weve been Building Software that allows them to get a digital presence and run their back office and were extending the depth of our product line globally and making it possible for them to reach customers, acquire customers and retain customers with Software Built for them whether its from another provider that weve made for them or were building it ourselves. This goes to the organic versus acquisition issue. To the extent there are no technologies you think you have to offer to continue the pace of this growth growing is it new stuff you plan to requegrow on own . Its a good question. There are a lot of companies that are doing pieces of what we do and our customers can say wed like you to provide a second Line Phone Service for me or help me with marketing with customers or do back office a little bit better and theres companies that are doing each one of those things but their acquisition costs are so high its hard for them to make a scale play. We can scale that software up with our low acquisition costs and our brand globally and take those things and theyre not for customer growth, its for grabbing technology and integrating technology across the product line and growing from there. We just acquired a Company Called Freedom Voice that will close in the Third Quarter that is an Internet Company and it provides second Line Phone Service for a Small Business because Small Businesses are individuals that are trying do two different roles from one phone so they want to be able to tell if its a customer calling or their Junior High School kids teacher and have the appropriate response for them. That kind of stuff is really understanding your customers so well that youre Building Software thats perfect for them. To the extent you have a pretty good pulse on the Small Business owner, not just here in the u. S. But globally, is there any great surprise in terms of whats going on with Small Businesses around the world . We dont run a cyclical business but what we find is when the economy starts to shutter a little bit and maybe Larger Companies start to layoff employees, individuals tend to rely on themselves and say you know ive always thought i might want to start my own business and now i have another defensive reason to do it so they start taking that step. If you look through the last ten years when weve had up and down cycles in the economy, godaddy has done really well and has had consistent growth through those periods. So the economy doesnt effect the business that much. Okay. Were going to leave it there. Congratulations on the Earnings Report and we look forward to seeing you again soon. Thanks andrew. Up next a look at Hawaiian Bank in the green up nearly 6 after going public. And then thought to himself, no, i shouldnt have done that. [ crash ] and doctors with Realtime Data at their fingertips asked, how a man your age could do this to himself . Before any of this, cdw orchestrated a point of care solution using the lenovo x1 carbon yoga with intel core processors. Connected health care by lenovo. Orchestration by cdw. Of course everybody is just buzzing around every water cooler in this building regarding mark karney and his policy. Theres one universal positive, theres one universal thumbs up hes getting and thats how he tried to differentiate those going on the path of negative Interest Rates versus his outlook which he doesnt believe in negative Interest Rates. Thats great but here is the problem. The policy stranglehold and it is because policy is contagious, stimulus overseas gets reconstituted, it ends up everywhere and it has an effect everywhere. Look at all global sovereigns today and bench mark them. Its more than that. The butterfly effects, so hes at 25 basis points. I dont worry so much about the rate. I think the easing and the 10 billion in corporates which is deemed small, but its not about being small, its about the butterfly effect and its quite strong. Corporate land is hot, hot, hot. My people at cnbc tell me and theyre following this closely in is the like the sixth largest week of the year and the sixth largest week ever in terms of corporate issuance. Close to 44 billion. If you look at 2016 alone its approaching 850 billion and we still have more on tap like cater pillar and others today. You can call it whatever you want but the notion that this money whether it buys back stock or pays dividend it keeps the gain going. Investors dont complain loudly because all these things put checks in their pockets but theres big negatives here that no matter what he thinks of negative Interest Rates or he doesnt like them the adjustment by everybody else to his policy and their policy to his policy their butterfly effect gives them more negative in countries where theyre negative or it gets them closer to negative. What type of insurance does he have about a real problem in the future. This is coming from a group that totally miscalculated the outcome of brexit. It seems fine if you look at the markets post june 23rd. No one is wanting to buy this market. The markets get themselves into a neutral position before you have that big news. We have linked reporting after the bell. Maybe more color on how linked in is going to fit in with microsoft. Well see how the afternoon trade shapes up. We have the jobs report tomorrow which everyone is awaiting. We havent talked about the most important story of the day which is this new apple show thats going to have gwynn eth paltrow doing apps. Thanks. Well see you soon. For now over to the halftime report. Welcome to the halftime robert. Bill ackmans big win, the manager selling out of canadian pacific, an investment that will go down as one of the biggest windfalls of his career. I spoke with him a short time ago and he told me peshing squair made 2. 6 billion on canadian pacific. He said its a great example of