Transcripts For CNBC Squawk Alley 20161114

Good to have you back. The dow trading at yet another record high this morning, before trading into the red just now. The nasdaq largely left out of the rally last week, added to its losses this morning, but its not just stocks. The dollar trading near 13month highs, the tenyear lead at its highest level since january, and, roger, a lot of people unprepared not just for the political outcome, but the market response to that outcome. Clearly, if the last few sessions are any indication, were in for more chop. I have no idea where this is going to shape out, but seems the one thing that had to happen, the surprise was so great, there were two or three industries, like banking and other regulated places, where essentially we saw 180degree shift that moved from clinton to trump meant you were going to go from heavier regulation to essentially much less regulation, and for bank stocks in particular, that caused a massive increase in enthusiasm. Which is understandable. So, as that repricing takes shape, do you believe the markets will start to bet in the longer term on pro growth policies that they think will happen on trade, infrastructure, energy . Well, i think if pro growth policies happen, yes, of course they will. You know, i think the core question is, where will the priorities in the new administration be, and i think especially of the new congress, you know, the new congress has some agendas, you know, related to Social Security, medicare, and dismantling the safety net. And, you know, that will be good for some industries, and i think bad for a lot of people. And well have to see how that turns out in the market, because, you know, its not clear how much is going to get done. I dont know which priorities are going to turn out. Carl, kayla, heres the problem, if you look at whats done really poorly over the last week, look at netflix down 10 over the last week, amazon down 8, google down seven, facebook down six, apple down 5 , microsoft also down about 5 . I mean, these are the things if innovation is sleeding, if youre expecting a growth economy, that you would hope to be growing. Were talking mobile, cloud, American Companies that are exporting innovation around the world. If youre looking at major indexes being up, i think youve also got to question where are these stocks down . Well, actually, john, i think thats a poor point, because i think that the big moves have been in stocks with, as i say, that were expected to be heavily regulated. Think about energy stocks, think about banking stocks, and those are not the growth sectors of the economy. Those are, you know, obviously old economy businesses that would likely, you know, people expect them to prosper under a republican congressional control. Well, a lot of the legislation, roger, would not only be new legislation, but it would require Something Else to be repealed. Financials would require some roll back of dodd frank, health care would require some rollback of the Affordable Care act, but it seems that tack reform and Infrastructure Spending are the two things you dont need Something Else thats already in existence to go away for that to happen, so how do you expect that to actually play out, and how long is the time period before we get those done. Is it a first 100 days type thing . Kayla you know, i would be shocked if anybody who claimed they had a clue really did have one, you know, i think that its been a long time since weve had one Party Controlling all three branches of government, and, you know, thats clearly where were going to wind up here. And it seems to me that in that environment, you know, the republicans are going to have to make some choices, because they can pretty much do whatever they want and theres an awful lot that theyve promised people and i dont know theres time to get it all done, so they are going to have make choices, which ones go first is not something i have any clue about. Yeah, tough one to read. Meanwhile, roger, we switch to social media and the election. Mark zuckerberg continues to defend the network amid reports fake news stories helped sway the election in trumps favor. This is an area where i believe we must proceed very carefully, though, identifying the truth is complicated. We must be extremely cautious about becoming arbiters of truth ourselves, adding its extremely unlikely hoaxes changed the outcome of the election in one direction or the other. Its not just facebook and its not just leading up to the election now, roger. Lots of examples even today of a search about the popular vote and Different Things that even google will give you right now. So, i think that facebook is in a really difficult situation right now. You know, i think that the problem were looking at has more than one level. The fake news thing, so the storys actually been dug into pretty well. There was a report last week about a Little Community in macedonia where there are 46 or 47 businesses generating fake political news in the united states, and they initially tried to appeal to both left and right, so sanders, as well as trump. What they discovered was that actually it didnt pay to focus on the left, that all the economics were on the right, and i think thats partly because you had fox reenforcing all the negative stories, but the net of it was they built real businesses doing this, and it was asymmetric, only on the right. And i think from facebooks point of view, you know, they sit there and go oh, my gosh, this is an unintended consequence of something we did that was meant to make people happy, not unhappy. Facebook isnt blameless, roger. Sorry part of the problem seems to be how facebook surfaces related stories. They have the people also shared underneath and theres no vetting, it seems, based on what the source of what people shared or why they shared it. Carl, i actually think its quite a lot worse than that. This is an absolutely predictable result of a set of choices facebooks been making for years. And essentially it was discovered i want to say five or six years ago there was a ted talk given by a guy named eli who created a site called upworthy and noticed in both google and facebook they had what he called filter bubbles, where by surfacing things they thought you were interested in, they would wind up reenforcing preconceptions, and what i think nobody thought about at the time was that could be exploited politically to produce really negative outcomes. In this election, the outcome that the republicans were trying to produce was to lower turnout. And if you want to lower turnout politically, the simple way is discuss people, make them feel like the process is broken, and so all of this negative stuff that was generated, which was phony and a lot of it coming from outside the u. S. , had a tremendous affect at dampening enthusiasm and it was asimilar etic and no way facebook can duck this. I think they didnt do it on purpose, right, and i think they have that in their favor. When you have 1. 8 million sorry, 1. 8 billion members globally, you dont get a free ride op unintended consequences. You do have to address them, and i think they made an important move last week in response to a story about the ability to use facebook tools to essentially exclude people based on race or religion or any other demographic characteristic. Facebook stopped that out relative to housing and other places where its illegal. But again, inherent nature of the network causes this problem. Doesnt facebook have to question whether it should consider funding, incorporating Something Like snoeps into its platform . You have to go and check with some source and see if the facts are legitimate and theres also the issue facebook itself, just the way its laid out and structured is grounded in the idea that people are vetted by their connections, that the people are real. Thats why, arguably, theyve succeeded, friendster didnt, twitter struggles with that. The question is, should facts be vetted on facebook Going Forward now that youve got this built out network of people, do facts matter at all . Facebook seems to be struggling with that. Well, i do think they are struggling, and i think the key thing to understand is, ive really tried to dig into this and i believe the people of facebook recognize this as a huge problem. Its super hard to admit this, to say, yeah, we really screwed up, but i think there are a lot of people in there who are deeply concerned about the problem. And it is not easy to solve, because as you pointed out, carl, it is essentially inherent in the way that the algorithm manages your news feed that reenforces your preconceptions, so breaking that risks breaking the entire model. I do think there are things, as you say, like a snoeps like system that would be really, really helpful, but you can anticipate where failures are going to occur and i would say the ad tools that allow people to discriminate based on various demographic characteristics, including race and religion, are obviously open for exploitation by people with bad political intent and we live in a time where bad political intent is epidemic, not just in the united states, but throughout western europe and other parts. Absolutely. By the way, just to be cleared, john was asking you that prior line of questioning, ill add my own, and that is whether or not you see maus at risk here. Out of frustration at facebook, Farhad Manjoo writing in the times maybe its time to detox from twitter. Are you thinking about that . Ive already detoxed from twitter. I went off of twitter about a year ago simply for the reasons everybody is doing it now, just the signal to noise was unacceptably low. Facebook serves multiple functions in the economy right now, and i looked at it in my own life and i would like to radically reduce my exposure to it for political things, but its an incredibly useful service, so i dont want to cut it off, because it does so much thats good. And i honestly do think they can make enormous progress on this and for a lot of people inside the company are committed to that, but i do think we have to sit there and help them get there by pointing out, look, this is really unacceptable behavior and trying to pretend, you know, i understand why from their point of view they dont want to admit theyve made a horrible mistake here, but it is really important to accept that a terrible thing has happened and they are at least partially accountable for it, and that their system is set up now that it can happen again if they arent really, really careful. We live in a time where for whatever reason theres a tremendous amount of intolerance, a lot of intolerance for people who are different from us, and its not right, its not fair, and facebook can, if it chooses, find a way to, you know, maybe reduce the ability of people with bad intent to harm others, and i think its really important that they do so. Roger, i do see some activity on your twitter feed earlier this week, not trying to split hairs here, but on the engagement question, even for people who enjoy the engagement during the election, who did not end up jaded, disillusioned by the type of content that they were seeing, do you think just the fact the election is now in the Rearview Mirror will have a negative affect on engagement for facebook, twitter, other platforms that are reliant on those clicks . Its hard to imagine that it wont. By the way, not just for facebook and twitter, i would expect cable news to really be affected by this. And, you know, i think everything, because people got into a, you know, this compulsive check, check, check, whats going on, whats going on mode, and, you know, i think, obviously, on one side the disappointment is going to cause some kind of backlash, and i think for the folks who are really happy about the outcome, you know, now youve got a different situation. Now theres nobody to blame, right, theyve got, you know, the dog bought the car, now what are you going to do . Its like, i look at this and i go, you know, i think its going to be very hard to govern right now. I think the country is, obviously, deeply divided. It looks like the popular votes going to wind up between 2 or 3 million in favor of secretary crameric clinton and thats a gap that suggests no mandate. I think the sarkt is going to have to sort this out, its going to be tricky. Its been caught by surprise and im not sure where any of this comes down. All we can do is sit back and wait for these dislocations, roger, to right themselves. Its good to see you, thanks again. I think its going to be a wild ride. Yeah. Roger mcnamee. Look out for your neighbors. Look out for your neighbors. Theres a lot of intolerance. Im wearing this pin right now, listen, if you need a friend, right, were out there. Yeah. Not everybodys theres a movement afoot on that front, as well, especially in new york city. Roger, thank you so much. When we come back, samsung making a multibillion dollar bet on car tech. Details on that deal. Then aol cofounder will join the show, how a Donald Trump White House will affect Silicon Valley. Later on, she slammed trumps economic policies during the campaign, saying theyd add trillioning to the National Debt. Committee for a responsible federal budget president will weigh in on his win later this hour. Were drowning in informa. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. Ways wins. Especially in my business. With slow internet from the phone company, you cant keep up. Youre stuck, watching spinning wheels and progress bars until someone else scoops your story. Switch to comcast business. With highspeed internet up to 10 gigabits per second. You wouldnt pick a slow race car. Then why settle for slow internet . Comcast business. Built for speed. Built for business. Samsung electronics is acquiring u. S. Based audio and Video Electronics supplier, the deal is valued 112 per share in cash or about 8 million. Thats a 28 premium. This is samsungs biggest acquisition in its history. The South Korean Electronics giant says harman will operate as a stand alone and plans to keep the headquarters and facilities. Given everything samsung has been through with the galaxy note 7 recall, this is a particularly interesting buy. The connected car is a space a lot of people are excited about. Look at what qualcomm just did as far as its acquisition. I guess the question is, do you get into that in a powerful way with a legacy purchase . Which is what harman is as innovative as it is. Do you get it doing that, or is it more of a Software Move where samsung should have done something on its own . Is this a shot across the bow at car play . Yes and no. In a way it puts them in position to do something in the car, but im not sure it puts them in the position to do something samsung specific, because harman plays so broadly, especially in the premium space against so many brands. And they are going to keep it separate. They are. Which is not traditional when you do a deal that big. But samsungs got so many separate subsidiaries, whether its heavy industry if you look at samsung as a whole, theres that. And the ceo will be on mad bob and shan mad money tonight, as well. Interesting to see what he has to say and how this will fit into that gargantuan samsung corporate structure. Indeed. Still to come, aol cofounder steve case on donald trump and how the win will affect investing in the valley. And we speak to Maya Macguineas. Shes worried trumps policies could add trillions to the National Debt. Stay tuned. Is it a force of nature . Or a sales event . The season of audi sales event is here. Audi will cover your first months lease payment on select models during the season of audi sales event. bing . Lets get a quick market flash here, go back to headquarters and check in with meg. Looking at shares of puma buys as shares are plunging at data coming out ahead of the san antonio Breast Cancer in september as these data show worse gastric side effects of their Breast Cancer drug as we have seen from previous studies. This is a side effect thats plagued this drug. They are trying to control it, but folks telling me the data today look to be worse in the side effect profile, so shares down at least 26 in pugh machlt. To politics now, Silicon Valley leaders, peter teal not withstanding, but just how are entrepreneurs, investors, and the tech sector at large prepping for the now president elect . Joining us now aol cofounder and chairman and ceo of revolution, steve case, also author of the third wave. Steve, you argue that this is a textbook case of disruption coming to washington. President elect donald trump is not ham strung by a partys ideology, so what do you think is the policy outcome from his administration . Well, i hope its really two things. I hope he really does bring the country together and Work Together here in washington, d. C. , in a bipartisan way to get things done, and i also hope he builds more of a bridge between innovators in places like Silicon Valley and people all across the country. We call it the rise of the west. We need to make sure the job creation, Innovation Energy of this economy is broadly dispersed and part of the frustration we saw last week with the election, a lot of people feeling left behind, left out, and they need to be part of the economy, we need a more inclusive economy, so hopefully i was not a supporter of trump, to be honest, i was supporting Hillary Clinton, but the American People have spoken. Now we need to move forward in a bipartisan way to make sure he remains the most innovative nation. We can only do that if people are focusing whats happening across the country. You know, the outreach to Silicon Valley, steve, was a hallmark of at least the early part of the Obama Administration before issues like encryption and Cyber Security became a bit more tenuous. Donald trump vilified a lot of those companies, amazon, apple, companies for either as he said dodging taxes or shipping jobs abroad. Can he bring them back into the fold now . I suspect he can. Well see how i think the key thing in the next few weeks, obviously, the team he picks is about execution. Execution, they talked about it in the book the third wave, about the priorities people set, so i think a real focus will be on the team he assembles at the white house, the key cabinet positions, but i think it has to go both ways. Its not just president elect trump reaching out to Silicon Valley. Its Silicon Valley reconnecting with the rest of the country, because this has been an area of frustration. Ive done five of these bus tours across the country, 6,000 miles, dozens of different citizens and they do feel left out and left behind, like people are talking past them, calling the flyover country, but the next wave, the third wave of innovation will be in sectors like agriculture and health care and education, so we need to get Silicon Valley reconnected with the rest of the country and also d. C. Reconnected with the rest of the country and do that in a bipartisan way. Hopefully, we can do that. Steve, if youre looking for bridge building, though, we havent spent any time today talking about steve bannon, but thats not a centrist appointment. And a lot of people losing their minds about it today. Does that suggest to you hes interested in that in those bridges, and what do you envision, a collection of Silicon Valley executives volunteering to work for the white house . Well, i dont know. I dont personally know steve bannon. Ive heard concerns expressed, priebus pick seemed like a good pick on the chief of staff side, but its still early. This election happened a few days ago, i think by all accounts trump was not spending a lot of time focusing on the transition, so now its really the focus, so really the next people he puts in place, i think, are going to be critically important, but hopefully theyll reach out, his acceptance speech tried to reach out, 60 minutes, i watched, he tried to reach out. He has to find a way to bridge what got him here because he was tapping into a populist outrage and sentiment. At the same time, he needs to hold out that hand to the other side and really figure out ways to build bipartisan coalitions to get things, taxes or infrastructure, regulatory policy, immigration policy, its going to require, you know, some support. Digging deeper on that, incentivewise for the rise of the west to take hold the way it needs to, are there a couple of specific policies that you believe would drive investment in, i dont know if you want to call it the heartland, rust belt, many of these rural areas that voted for trump that feel left out and have not seen the Technology Presence and level of investment thats needed . Absolutely. One of the things i mentioned, last year 78 of Venture Capital went to three states, california, new york, and massachusetts. 78 . The other 47 states bought over 22 . If youre an entrepreneur in detroit, des moines, madison, its harder than if youre in San Francisco or new york, so they, too, feel left out. Because they create the jobs, getting more entrepreneurs in more places focused on more problems, seizing more opportunities will then create the jobs in those communities, more hope in those communities and more opportunity in those communities. That is what we need to do. Whether president elect trump got elected or Hillary Clinton got lektsed, we need to focus on the rise and create jobs everywhere and there are also things to be done on tax policies, incentives around jobs specifically, incentives around investing in some of these sectors and other places such as agriculture and the third wave sectors, so i think theres a number of things that can be done to move this forward and Start Building bridges all across the country. Were writing a long to do list. Steve, its always good to see you. Thank you, great to be with you. Steve case from the revolution. Still to come this morning, 19 trillion and going strong. How Donald Trumps economic policies will affect the National Debt. Committee for a responsible federal budget president Maya Macguineas is with us next. Plus, well countdown to the european close. More squawk alley returns in a moment. H the dogsized horse . Im stressed trying to figure out this complex trade so i brought in my comfort pony. Well, you could get support from thinkorswims inapp chat. So you dont need a comfort pony. So what about my motivational meerkat . Inapp chat on thinkorswim. Only at td ameritrade. Good morning once again, everybody, im sue herrera. The moment a strong earthquake shook new zealand was caught on camera in a local supermarket. The 7. 8magnitude quake pummelled central new zealand, killing at least two people, damaging roads, and setting off strong aftershocks. Footage has been released showing the arrest of an isis militant by kurdish forces. The offensive to reclaim the town is part of a broader push to drive isis out of mosul, which is iraqs second largest city. Toyota will pay up to 3. 4 billion to settle a Class Action Lawsuit by pickup and suv truck owners in the u. S. Its because their vehicles lacked adequate rust protection. It covers 1. 5 million vehicles from the years 2005 to 2010. And its that time of the year. The Postal Service says its ready to deliver roughly 16 billion pieces of mail this holiday season. That includes 750 million packages, thats 12 increase from a year ago. The busiest day, mark your calendars, monday, december 19th. Its hiring more than 35,000 Seasonal Workers to help the demand. Thats the news update this hour. Back downtown to squawk alley. Carl, back to you. Sue, thanks so much. Were going to get the european close here in the uk and across europe. Seema is at hq. Hey, seema. The post election rally is holding in most parts of europe, but we are off session highs as Oil Prices Fall on the recent oversupply concerns, pushing some of the major indexes, in fact, into negative territory, but outside reaction in bond yields as Goldman Sachs says this morning is the biggest discussion among traders with the yield in germany, the german tenure hitting a ninemonth high. Is this move overdone and what are the implications for the European Central bank and its policy around quantitative easing . Thats something investors continue to deliberate. On the topic of u. S. European relations, Foreign Ministers continue to meet after last nights dinner did not go as planned. It was supposed to be a post election aftermath deliberation, but france and the uk refused to attend, highlighting a contrasting view on trumps victory and the lack of the unifying tone from the european bloc as it enters untested waters with washington. On the mna front, a deal to acquire u. S. Based firm mentor graphics, which makes computer chip design software. Meantime, as investors try to make sense of a Trump Administration for global stocks, the surge in the dollar continues to push the euro down trading at december lows. Thats, of course, a boon for european exporters. And the turkish lira has hit a low. Turkey also dealing with its own political turmoil. Guys, back over to you at the new york stock exchange. Seema, thank you very much at hq. Bond markets selling off, yields rising on expectations on increased stimulus in a trump presidency. The president elect was asked about Foreign Policy on 60 minutes last night and linked it to the nations infrastructure. Take a listen. Weve spent 6 trillion in the middle east. 6 trillion. We could have rebuilt our country twice. You look at our roads and bridges and tunnels, our airports are like obsolete, and i think it was just a repudiation of whats been taking place over a longer period of time than that. For more on a potential deficit spending in a Trump Administration, we turn to the president of the committee for a responsibility federal budget, Maya Macguineas, good to have you back, good morning. Nice to be with you. Your number before the election was 5. 3 trillion over a decade. Have you heard anything since the election that would make you want to revise the number . There are some changes in terms of as hes starting to back away from some of the proposals, but weve also seen the infrastructure numbers potentially becoming larger, so i think the question now is, given his promises and proposals would add about 5 trillion to the debt or more, is are the political leaders hes working with, mcconnell and paul ryan, going to go along with that, given republicans have put forth a very important objective of their own, which is to balance the budget over ten years, or is there going to be negotiation within the Republican Party about how to scale back the borrowing and think about ways to talk about things like tax reform and infrastructure in a way that would be more fiscally responsible. Any doubt in your mind the bond market is reacting to the prospect of higher deficits and all the Credit Ratings that go along with that . I think theres no question they are absolutely linked, and one of the interesting things when you think about the budget deficit, is the timing of the issues matter. So when you think about shortterm deficits that could stimulate the economy, there tends to be some positive feeling about that until you look out farther along and you see that if that stimulus is actually more permanent spending or tax cuts, and would continue to grow the debt from its near record levels where it already is, that growing debt starts to harm the Economic Growth, so shortterm stimulus could give the economy a boost, but it wont work if its actually having longterm debt increases. So i think what would be the best plan and where you see the best responses would be if theres actually a more sustained Economic Growth plan, and that again needs to think about taxes, spending public investment, but also bringing the debt as a share of the gdp back down to a sustainable level, otherwise thats what underpins everything and that can undermine any growth plan. Maya, doesnt it come down to entitlement spending and cutting that if youre going to come anywhere close to balancing this . I mean, i hear the arguments about you cut taxes, you get growth, kind of that perspective, and theres been lots of argument, but bottom line, unless you get some crazy explosion of growth, the likes of which we havent seen, unless you deal with entitlements, this thing is going off the rails, isnt it . Absolutely, and that is the issue we just did not hear about this election in any kind of a realistic or responsible way. So when it comes to growth, we want to pursue growth policies, but lets be realistic, our economy is not going to grow in some crazy gang buster way all of a sudden, and its certainly not going to reborrow, for one reason, we have a demographic shift where baby boomers are retiring, so we need realistic growth assumptions, but one of the keys to fixing this entire problem, and again, nobody from either Political Party was willing to address it realistically is, we have an aging population. We have Health Care Costs that continue to grow faster than the economy. We have to do something about Social Security and medicare. There are plenty of ways to make changes that would protect the people that depend on them, but kicking the can year after year, which is what we have done, hurts our budget and it will hurt the economy. And those changes will be phased in gradually, so they are not going to have an immediate affect, and they also would be great for people who are participating in these programs to actually know we could meet the promises that weve made, because right now, you do nothing on Social Security, which is, in fact, what donald trump has said he would do, there will be an across the board 20 spending cut for everybody, from the oldest widow on down. Thats not how we should be running this program, so it matters for the people who participate, matters for the budget, and it matters for the economy and well need real Political Leadership to address those issues. Which is why its pretty astonishing entitlement spending was almost completely absent from the campaign trail, but maya, when you look at Donald Trumps economic plan, 6 trillion over the next decade is going to come specifically from the Energy Industry and from new projects getting green lighted there and from new federal reven revenues. Is that a bird in the hand or do you discount that in your math . I have real concerns about the projections the Trump Campaign depended on. They had very aggressive assumptions about what wed be able to generate from changes in energy, trade, immigration, and the growth from tax cuts. And they did nothing to sort of look at some of the negative effects you might have from trade changes or the growing debt. I think those assumptions on energy are too aggressive, but whether were right or wrong, heres the lesson we need to follow as were looking forward. Dont be dont use rosy scenarios. Lets have policies that help try to grow the economy, but you cannot count on them in your projections until the growth starts to materialize, so be cautious, were assuming, so we dont spend away money and then realize were even farther in the deficit hole than were projected to be. Maya, we look forward to talking with you a lot more over the next couple hundred days. Maya macguineas for the committee of a responsible federal budget. Thank you. Still to come on squawk alley, the conversation over the National Debt continues with our Rick Santelli speaking with students at Washington College for a special edition of the santelli exchange. And a quick programming note, president obama expected to speak at 3 15 p. M. On the east coast today. Well be carrying that live here on cnbc. Well be right back. Coming up today on the halftime report, did the trump rally last, or did you miss your best chance to get in . Plus, the president elect vowed to jump start defense spending. One firm just made a big bet on one company. Its our call of the day. And walmart, home depot, lowes, well talk about those trades coming up top of the hour on the halftime report. See you in about 15. All right, scott, see you then. Meanwhile, lets get to Washington College where Rick Santelli is live with a special edition of the santelli exchange. Absolutely, special edition, carl. You see this . This is a mop, and all the generations, including mine, are giving young people a real mess. I want to know whos going to end up mopping it all up. We have some young people here. Audrey, whats your greatest fear regarding the situation fiscally, all the debt, what are you worried about . Im really worried, rick, when i turn 65 i wont get a portion of the Social Security ive been contributing to for my entire time in the professional world. We didnt hear much on entitlements from either candidate, did we . No, we didnt, and im really scared for it. Graham, whats the thing that keeps you up at night . Well, like all college students, my job prospects. Our economy is going through a transition period, the Global Economy is weak right now and we know high debt to gdp ratio can cause slow gdp growth and im worried thats going to affect my job prospects. What keeps you up at night . Im not sure what the new election is going to do for the National Debt, but i know everybody is going to need to make sacrifices, tighten the belt a little. You bring up a good point. We always talk about changing programs and the minute we do, the newspapers, the magazines, the tv channels, this groups going to get harmed, this groups going to benefit. Samson, if there was change, somebodys going to pay a price. Is there any way around it . No, its inevitable, everybody is going to have to make changes. All right, we have three students that havent graduated yet and we have preston here. Hes the man, hes in the real world, hes landed safely. Any observations from the real world, preston . Ive been in the real world 18 months. Let me tell you, its not just the 20 trillion debt that worried me, its the 200 trillion from the taxes well take in and spending we have scheduled. Thats what really scares me. Young people arent happy, i completely understand. This particular campus seems like they are okay with the way things are, or at least dealing with it how it is. Any final comments for fellow students around the country as they try to get used to the fact they may have a president they didnt necessarily back, support, or vote for . Well, i have to say, you know, whether you supported donald trump or Hillary Clinton or a third party candidate, you know, the success of the president right now is all of our successes, so we should vote for successful administration. Samson . It happened, we got to move forward, whatever happens, we got to support the president. Quick, anything you want to tell students, the both of you . Make sure to keep saving. Its up to you to make sure you have a good future. Boy, these are smart young people. You know what, i think theres a place in government for them somewhere. John ford, back to you. All right, thank you, Rick Santelli, and thank you to the students. Still to come, a sneak peek into the database strategies some companies are using to predict policy under a donald trump presidency. The ceo of fiscal note is next. Did you know slow internet can actually hold your business back . Say goodbye to slow downloads, slow backups, slow everything. Comcast business offers blazing fast and reliable internet thats 10 times faster than slow internet from the phone company. Say hello to internet speeds up to 150 mbps. And add phone and tv for only 34. 90 more a month. Call today. Comcast business. Built for business. Predicting politics with tech as president elect trump fills key positions in his cabinets, Big Companies are using big data to predict policy provisions. Fiscal note raised over 30 million from investors to help names like uber and dow chemical to do just that. Joining us now, founder and ceo of fiscal note. Thanks for joining us at post 9. First question, i have to ask, as bad as the polls and the data crunchers were at the funny thing about politicians theyre predictable. Well, they were. Its the dream i think of every mathematician and economist to have in type of data, right . The great thing about congress is that legislators vote their preferences hundreds of times of week, and that data is incredibly valuable at predicting outcomes. On the legislative side and regulatory side. When i look at your Cyber Security is something everybody is taking a look at across the board. On the president elects policy agenda, there isnt that much from the Technology Perspective and so i think the status quo right now is that a lot of state and municipal organizations are going to try to push for their policy agendas, but the reality is we dont have a lot of data to go off of right now where. He himself has no policy votes. What data do you use . Those of his advisors or key allies on the hill . Take a look at the policy taking a look at the fwiter account. He tweets a lot about fed policy and what not. The reality is that, you know, the policy agenda has been changing pretty constantly over the last couple of weeks. You help businesses take a look at the policy in congress and lets take a look at the legislative calendar next year. We still have a lot of stuff to do this session. Congress is going back into session today to fauk about a lot of different issues. You have to fund the budget. Obviously for the rest of the year. We have to talk about things like rule 41. The fbi has pretty much unlimited access to legally Hack Computers across the country. You know, we have to talk about the innovation that congress is going for right now. Congress has essentially said that they want to revitalize the way in which the fda approves drugs and medical devices. That needs to pass through. You know, moving forward into the next couple of months, the first two years of the president s agenda is incredibly important, right . Were taking a look at particularly things in energy. A lot of the things that president obama has proposed in the last couple of months, the power plan, clean water account and what not, most of these things will most likely get reversed. Department of labor has come out with a lot of rules around the fiduciary rule. If you are bullish on electric vehicles, should you be worried here given that the Auto Industry is already lobbying for a reduction in fuel economy standards and, you know, not likely to perhaps see the same level of subsidies for green power that we have for the past few years . There are a couple of bills in congress that most likely will get passed in the next year or so. I do think if you are one of these companies, you should be worried. You know, we saw this over the weekend with the New York Times. If you are a particular company that is not particularly aligned with the trump agenda, i do think that that is something that you need to worry about right now. I notice amazon is a client, and we have we have a going list of trump grudges against amazon, macys, ford, apple. Do you believe there is such a thing as a trump grudge trade . Absolutely. I think theres some retribution thats probably going to happen, but the reality is that is probably the way the politics is moving forward. Again, we saw this with the New York Times over the last couple of days or so. Everything from boycotts to the way in which the culture and Organization Changes and shifts with the political climate. When we come back, larry david and company are coming back to hbo after a fiveyear hiatus. Talk about that in just a moment. Is it a force of nature . Or a sales event . The season of audi sales event is here. Audi will cover your first months lease payment on select models during the season of audi sales event. bing [and her new business i do, to jeanetgo. Jeanette was excellent at marrying people. But had trouble getting paid. Not a good time, jeanette. Even worse. Now im uncomfortable. But heres the good news, jeanette got quickbooks. Send that invoice, jeanette. Looks like they viewed it. And, tada paid twice as fast. Oh, shes an efficient officiant. Way to grow, jeanette. Get paid twice as fast. Visit quickbooksdotcom. We heard you got a job as a developer its official, i work for ge what . Wow. Yeah okay. Guys, ill be writing a new language for machines so planes, trains, even hospitals can work better. Oh sorry, i was trying to put it away. Got it on the cake. So youre going to work on a train . Not on a train. On trains youre not gonna develop stuff anymore . No i am. Do you know what ge is . Everybody cannot wait for the new season of curb your enthusiasm. After a fiveyear break, larry david and the whole cast coming back for season nine of curb your enthusiasm. Hbo put out a teaser trailer on twitter over the weekend saying production has begun for a release sometime next year. Of course, we know from snl he is certainly not out of practice. I hear the season will be pretty, pretty, pretty, pretty good. And it seems appropriate for leftleaning hollywood, right . You know, curb your enthusiasm. After the election. Absolutely. Meanwhile, other tv news, nbc announcing last nights broadcast of seahawkspatriots scored an overnight rating of 14. 3. That is the highest rated week ten sunday night football telecast in about five years. Game had a 23 share, meaning about 23 of tvs being viewed were tuned to the game. Its a good matchup. Former super bowl matchup. Others, though, may want to build in the narrative that election over a week and things can get back to sports. That was programming directly against the president elect on 60 minutes which also drew extremely high ratings of about 34 . Even sew, nfl, higher draw. Hard to believe. Yeah. Easy to believe. I mean, come on. Which would you rather watch at this point . The leader of the free world. One of live, and you got to see it then with your friends. The other, you know, you could wait and dvr it and catch it later. It makes sense to me. Highlights either way. Thats a big part of the world we live in. As for the week ahead, we talked a lot this morning about the fed speech thats headed our way. 14 fed speakers, including yellen and fisher. Cpi, ppi, and then more retail data from home depot, target, walmart, abercrombie fitch. Its jam packed. And it is the week before, of course are, this big retail week coming up. I mean, its hard to believe thanksgiving and black friday and then cyber monday after that are drawing so close. Indeed, they are. A lot of Christmas Decorations are already out there. Normally you wait until thanksgiving for that, but clearly retailers are trying to drum up the momentum. I think what might be one of the more Interesting Data points of the week, Mortgage Apps it. They normally come and go. We dont pay it that much attention usually, but about the 30 year back to 3 and the tenyear at 2. 30. It will be interesting to see if people are trying to refi, lock it in, avoid mortgages altogether. Who knows . Well have to find out. See you later on. Lets get back to heatdquarters. Scott wapner and the half. All right, guys. Thanks so much. Welcome to the halftime report. Im scott wapner. Our top trade this hour. The postelection tech route and whether it is safe to buy some of the most beaten down names now. With us for the hour today joe, jim, steve weiss, aaron brown with us as well. She is with ub steve called this the trump repositioning trade. Facebook down 4 today. Amazon 2, google 2. 5. Netflix more than 2. Whats going on . Why do the stocks keep going down . Well, a couple of things. I think theyre worried