Welcome to squawk alley for a tuesday. Im Carl Quintanilla with Kayla Tausche this morning. Donald trump getting everyone talking today, trump tweeting boeing should cancel the order for two new air force one jumbo jets. Phil lebeau has been following this. The tweet got us asking a lot of questions and people focusing on boeing. A few minutes later, donald trump was in the lobby of trump tower and he followed up with some very strong comments. Listen to what he had to say. The plane is totally out of control. Its going to be over 4 billion. Its for air force one program. And i think its ridiculous. I think boeing is doing a little bit of a number. We want boeing to make a lot of money but not that much money. Okay. Thank you. So what exactly is the air force buying from boeing . Were calling these the air force one replacements. Its two 747 planes. Someone air force one, the other is air force two. 1. 65 billion has been allocated for development through 2019. Theres not money set aside in terms of a final cost for building the two 747s. By the way, first delivery expected in 2023. A couple of notes regarding boeing and this tweet from donald trump. Weve reached out to boeing. The company says it has no immediate comment on the president elects comment or criticism about the cost of air force one. By the way, on friday, former boeing chairman and ceo jim mcdurney was named to Business Leaders who will be essentially a Kitchen Cabinet of Business Leaders advising donald trump. Its interesting he is joining this Group Advising donald trump and three days later he takes a shot at his former company. One other note. Its been mentioned that donald trump had owned a sizeable number of boeing shares earlier this year. The Trump Transition Team was asked about that a few minutes ago. They say that donald trump sold all of his boeing stock in june and that his comments today reflect their desire and his desire to keep costs down across the board, trying to save money, as much money as possible for the taxpayers. Back to you. Phil, a lot to talk about this morning. Thank you for setting us up. Phil lebeau. Trumps tweets tie into a conversation weve been having on the president elects relationship with Business Leaders in the United States. Former metronic ceo bill george who once served in the Defense Department early in his career. We were going to talk carrier and utx. Here we have another example of what some are calling intervention in private enterprise. Is that how you see it . Absolutely. Trump is showing hes going to be an activist president. Still six weeks away from being inaugurated. Weve never seen anything like this in a president elect. He is going to make his point and go after individual companies. This is sending shock waves through the Business Community and a lot of Business Leaders are just trying to stay under the radar. Couple of weeks ago, we saw jim immelt and mark fields try to get out of in front of it so they could stay out of that line of fire. Now i think leaders are saying i think ill not say anything, keep out of it. We heard earlier in your show being extremely diplomatic. They like a lot of things hes doing. They want tax reform. They want regulations reduced. They like those things. On the other hand they see these things coming. For the Global Company will render them none economic and noncompetitive in markets. Product made in the usa, important for the use of the government, goodpaying u. S. Jobs that go into this. I dont understand exactly how air force one is developed. The security, considerations that go into that. Im not sure the president elect has been fully briefed on that yet. Perhaps he has. But what exact message does this send . This is an area where i imagine you want the United States to be ahead of the curve, technology involved with aerospace, with security, with all of that. Whats the impact on the workers who would be working on the development of these planes who now have to question whether theyre going to have jobs. Well, its going to send again, shock waves. Going to scare them. Boeing is a great global manufacturer. Theyre engaged in the great tug of war with airbus. France and germany and trying hard to win the war and win that Chinese Business. They cannot win Chinese Business where asia is where the big opportunities boeing commercial aircraft lie. Theyve got to win that business and become they cant do that without producing some of their parts, some of their goods in china and asia or will not win those orders. Implication of trumps tweet is that theyre ripping off the government and making a heck of a lot of money. Defense contractors have cost control problems but not necessarily theyre making too much profits. Yeah. I think the profits are constrained quite a bit. Its the cost issues. He is playing to his base, trying to show himself there to support the people. Workers could be hurt if they cancel that order. Absolutely. A lot of these companies are contractors and contracts, in large part, are with the u. S. Government. How easy is it for the president elect to target the companies that are already under contract with the government because they dont want to lose that revenue . Ceo greg hayes said 10 of our business is with the government. Were aware of that. Im surprised its that small. Greg understands that. Thats why he had to make a deal with trump on carrier. He had no choice. It wasnt about carrier. It was about united technologies. He to make a deal. He had to compromise to hold 800 jobs here. John kerry said it last night. 85 of the problem with job loss is not trade, its technology. These companies are going to be forced to ramp up their automation, which is a good thing. Question is, do we have skilled workers to do those jobs . Other industries, shock waves going through them, including the service industry, ripe for automation right now. I dont want to be like france where we move away from a nation of laws to kroeny capitalism. France does that all the time. Its very hard to close a factory over there, i can tell you. Ive gone through it. They have 10 Unemployment Rate because no one is going to create new jobs. American companies have to create, compete with all these Foreign Companies coming to your own country. No one is stopping them from coming in. Phil lebeau mentioned a couple of minutes ago the fact that boeings former chairman and krechlt ceo is on an advisory panel. Would this have been better negotiated face to face rather than over twitter . Of course but hes trying to send a message. The Advisory Board is a terrific thing. Look at the caliber of people on there. These are the best of the best. Mary barra of general motors. Really first class people except Silicon Valley is strangely absent. You have really good people, good for trump for doing that. I hope he listens to them. They will advise him on these issues if he takes time to listen. Whether its boeing or utx, two companies have broad exposure to federal contracts where, clearly, the government has leverage in the long term. For whom there is no leverage with the government. I went after rexnard moving 300 jobs to mexico. I im sure they didnt appreciate that. Im not sure how theyll respond. The other thing i want to point out, for Companies Like boeing, general electric, ford, medtronic. Every time you add a job overseas you add three jobs here, manufacturing experts, marketing, sales, administration. And if you dont generate overseas you lose the market to foreign competitors and then you wont have any of the jobs here. I think theres a little misunderstanding. Yes, hes trying to protect the blue collar jobs but we need to upgrade those jobs, like the germans do. Thats a longerterm proposition. Right. At least some of our viewers hypothesize, you have the front page all about pentagon waste, taking 1 in salary. Maybe hes trying to demonstrate to his supporters that hes thrifty and government like overpay is a thing of the past. Well, yes and no. Well see about that. Its hard to thats a pretty hard argument to put across, that donald trump is thrifty. I think he does want to let people know hes representing them. In terms of business terms, this is a big, serious concern. Business is holding back because they like the idea. Lets get tax reform. Sure. Have patriation holiday. Can they do more m a in the boston area and United States if they can bring that 250 billion in cash back to the u. S. Theyre very excited about that. I think theres kind of a wait and see right now. Meantime, they kind of want to hold back and not put their heads too far above ground. Definitely in the news. Once he sets his eyes on you. Bill, good to see you. Thank you so much. Bill george. Thanks for having me on squawk alley. News from trump tower. This time regarding a possible s. E. C. Appointment. John harwood has that. Morning, john. Reporter morning, carl. No official announcement yet. It appears that Deborah Huang yang, former u. S. Attorney now California Law firm partner may be the frontrunner to be the chairman of the s. E. C. No specific word from the Trump Organization and, of course, the president elects aides were saying on our Conference Call he continues to mix and match people and dont always assume people who come in for interviews are up for the job theyre rumored to be up for. Kelly odonnell on capitol hill reports she is believed to be a top contender for the s. E. C. Right now, at least as of a few minutes ago, Rex Tillerson of exxonmobil is believed to be a candidate for secretary of state. They didnt officially confirm that. We are watching a frenzy of meetings as president elect trump and his team sort out who fits where. They emphasized they are mixing, matching, feeling out people, getting advice and changing slots what people are being put in as that interview process goes along. Carl . John thank you very much for that. John harwood outside trump tower in new york city. Why the wall street journal says amazon go is just the beginning when it comes to jeff bezos and his shopping experience. Technology is key as well. Well talk to blake irving of go daddy. Dow is down 20. There are many things you dont want in industrial strength like cologne. Morning but theres one thing you do. gags its called predix from ge. The cloudbased Development Platform thats industrialstrength strength the markets change. At t. Rowe price. Our disciplined approach remains. Global markets may be uncertain. But you can feel confident in our investment experience around the world. Call us or your advisor. T. Rowe price. Invest with confidence. We have an important update on the microsoft linkedin deal. That eu antitrust regulators have cleared microsofts 26 billion bid for linkedin, albeit with some conditions, the company agreeing to allow linkedin rivals to operate with microsoft products. Microsoft will give pc makers the choice of not installing linkedin on the windows operating system. Additionally users, it sounds like, would be able to uninstall it from windows. Obviously a series of concessions here meant to address these competition concerns in europe. Brad smith, who is microsofts president and chief legal officer, noting in a blog that this approval in brussels follows similar reviews we saw in the United States, canada, braz sbil south africa. He notes we appreciate the opportunity to talk through these and other details in a creative and constructive way. He says with this regulatory process behind us, we can bring together two Great Companies and focus on even broader issues for the future. John, back to you. Josh, its interesting. At the end of microsoft president brad smiths blog post here, he talks about the political ripples, maybe even tidal waves sweeping through brexit and the u. S. After the president ial election and points out some people feel left behind by the digital economy, tries to say that microsoft linkedin will be able to help that. Do you think this signals some sort of recognition on the part of tech that they need to change their language in this political environment . I think thats so interesting, john, to bring up. Youre right. This blog post gets into how brad smith thinks about these two Companies Working together. Youre right, he does talk about a lot of what he believes the benefits could be. To your point, working together he was talking about microsoft and linkedin, we can do more to serve not only those with College Degrees but many people experiencing skills and credentials with socalled middle skills. He goes on to say our ambition is to create our part. So youre right, john, new language here coming from the company specifically on this deal. All right. Thank you, josh. Still to come on squawk alley go daddy announcing its biggest deal ever. Ceo blake irving will join us in a cnbc exclusive to weigh in and discuss the future of tech jobs in america. Go daddy is purchasing european rival. Joining us to talk more is ceo of go daddy, blake irving. Microsoft put out a statement about the conditional approval in europe of the linkedin deal. It talked about how many people in western economies, u. S. And europe, feel left behind in the digital economy. How does that play into this acquisition and maybe how youre going to deal in europe as a tech company in this new era. For the business were in, our tools have gotten so much easier to use for Small Businesses they can start to do more digitally. The Digital Divide that was much broader years ago has started to narrow. For Small Businesses trying to get online, with host euro group or us with our 4. 8 million, international customers, were seeing folks start to come online with digital tools, get website, web presence, get social on facebook or twitter up and running. And they feel like the barriers are lower. More folks coming online. Starting to do things themselves. Still using a professional to build it but it really matters for us. Give us your take on president elect trumps plans to keep jobs in the u. S. Lot of focus on manufacturing but what should he do to expand that focus to include tech . Tech is a community thats global. So our company, we have developers outside the United States. Microsoft, google. Its not so much an import of jobs. Half a million jobs are going unfilled in the United States because we dont have qualified people to fill them. Frankly, if i was the president for a day, if i was president elect trump, i would try to figure out how to manage both Student Visa Program and h1v visa program. Those jobs wont be filled immediately until we have Education Systems that can get Computer Science further along and get folks in those roles professionally today. Blake, it would seem the priority of the income iing administration is less about keeping the highly educated immigrant workers in our country and more about the workers in our country, that they are trained to have their skills be relevant in the workforce today. Do you see that happening . And how would that happen . I think its hard to turn everybody every worker that will be displaced into automation into a programmer. I do believe those same tools that are displacing workers, whether its overseas or displacing workers in the United States through automation, that that same automation, whether its ai, machine learning, can actually allow small and have big advantages that Larger Companies exist or get. We see folks starting businesses in the u. S. Because tools are more accessible, back to johns question earlier about whether we think that the technology is affecting folks ability to get online quicker, to use those tools and sort of narrow that Digital Divide. I think thats happening. Part of the acquisition is about broadening our footprint in europe, getting in a position where we can actually start providing those capabilities across the european continent. Blake, its carl. Lot of political turnover, obviously, in europe, italy, france and the uk. Do you see any of that having an inhibiting affect on new business creation . You know, no, we dont, carl. I talked to you about this before. In the United States and throughout the globe, we have this odd resilience in our business model. Were not counter cyclical. When folks are seeing something go south and they believe they might actually lose their job or are being displace they had tend to bootstrap and go do something else. They start taking action that allows them to rely on themselves and not rely on the government or large company. They start making that tradeoff to say im going to go make this investment myself. Through 2007 and 2008 we saw this in spades in our business where we didnt have any affect in a downed economy. I think well see the same thing, whether its italy, brexit, spain. Were still seeing a lot of good activity and growth there. Blake, thank you. Blake irving, ceo of godaddy. All right. News alert now. Lets get to Steve Liesman back at headquarters with that. This is interesting. Doug overoberhelman asked about the 35 tariffs on imports to the u. S. Hey, that sounds good but hes worried about retaliatory tariffs coming from china. We could be closed out of our markets and urged the new Trump Administration to, quote, find a way where we all win on trade. Carl . Another wrinkle in this ongoing story. When we come back, the New York Post weighing in on the plan to end the cash register. Amazon go is only the beginning new reports say. There are many things you dont want in industrial strength smash like an administrative assistant. Your 3 oclock is here. But theres one thing you do. Its called predix from ge. The cloudbased Development Platform thats industrialstrength strength may not always be clear. But at t. Rowe price, we can help guide your retirement savings. So wherever your Retirement Journey takes you, we can help you reach your goals. Call us or your advisor t. Rowe price. Invest with confidence. Back to our top story, Donald Trumps cabinet talking about this tweet regarding boeing. Phil lebeau has an update on that, including a statement from the company. This is all about the negotiation. This is boeings statement in response to donald trump earlier today saying the cost of air force one in development is out of control. Cancel the order. Boeing said a few minutes ago, we are currently under contract for 170 million to help determine the capabilities of these complex military aircraft that serves the unique requirements of the president of the United States. We look forward to working with the u. S. Air force on subsequent phases of the program, allowing us to deliver the best planes for the president at the best value for the american taxpayer. Carl, we have talked about this and talked about it with carrier, ford. You see tweets from president elect and people immediately say wow, he wants to cancel the entire order. Those are markers out there. Boeing is responding by saying, okay, its a negotiation. Now were going to sit down, talk with the president elect and his staff and see what the best deal is in terms of these next Generation Air force one aircraft that boeing is developing and will build, starting in 2020. First service is expected to be late 2023, maybe 2024. Theres the tweet that started all of this earlier this morning where donald trump said cancel order at the end. I dont think were going to see it canceled. We may see it modified at different price constraint. Carl . Phil, thank you very much. Appreciate that. Stay right there. John harwood is outside trump tower. John, phil makes the point but the text reads cancel order so were learning by doing as we read these tweets. Company taking jobs overseas would face a 35 tax and what actually happened with carrier was they didnt leave. Phil is exactly right. This is signaling by the president , he is throwing a brushback pitch to boeing as he did with ford, carrier, as he did with the chinese over the weekend. Donald trump is trying to send signals to the American People about his approach. Im reminded, you guys took him literally. Dont take him literally. A literal reading would say hes going to cancel, a trump realistic reading would be hes bargaining. Safe to say that trump is the first president to come into office with his own plane. He will be taking a 1 salary. He is in a unique situation to not need air force one but ostensably whoever comes in to office after four or eight years would not be in that situation. There is no way in the world that donald trump is going to use his plane as president of the United States. The secret service would not allow that. He is going to be on air force one, period. The question will be what happens in the back and forth. We were on a transition call and asked about details. What are you talking about when he says costs are out of control . And the only response we got was 4 billion is a big number. They didnt have any details. They said well provide some details after hes inaugurated. It doesnt appear to me that there is a very firm basis for what the president is saying. The message that phil just conveyed from boeing indicated, the project is not far along enough to have huge costs overrun. I think this is donald trump telling the American People im going to be tough with your money. As a blunt message sending that message maybe it works. Trump tower getting expensive for new york to protect. It makes me ask a question about perspective. Cuts to spending would be effective. Is there some way that the president elect could do this in health care costs, entitlements, which are areas that really do have a big impact on americas bottom line . Sure, he could if he wanted to. He said he had no intention of cutting entitlements. Medicare, Social Security and defense are where the big money is in the federal government. He has said throughout the campaign he believes he could do it more efficiently than previous president s have done it. There was a story in the Washington Post that the pentagon buried about waste in the pentagon. But its going to come down on policy. So is paul ryan, speaker of the house. Well have to see what sort of bargaining goes on not just tweeb the administration, Corporate America and chinese but with his fellow republicans who are sharing power with him. Phil, you know carl . Go ahead, phil. The final price hasnt been set by these two planes being built by boeing. Thats part of the process with the air force. They say we need these capabilities and they go back and forth and talk about this is what the cost is likely to be. Its not just boeing. Its not like boeing pulls a number out of the air and says 4 billion. There are cost overruns. Thats certainly a concern. People would look at what donald trump is saying and saying good hes trying to keep a cap on those cost overruns. The final price has not been set yet. Well hear from the air force. Theyre the other party involved in setting what air force ones capabilities will be, how much it will cost. Thats a live shot on the left side of the screen with air force one on its way to tampa today. John, im thinking its not like we havent seen but will this negotiation on twitter in public bring those discussions into sharper relief for everyday voters, for instance . No question about it. He has 20 million followers. There will be very high awareness sorry. Weve got a little Law Enforcement activity or ambulance activity behind me. But people will be aware of the issue and i would expect donald trump to continue using twitter in just that way. Thats a good example of what midtown is like right now. Lot of sirens around 5th avenue and 57th. John harwood and phil lebeau in chicago. Markets closing in uk and across europe a few minutes ago. Lets go to seema mody. Seema . Leading the pack, rising to an 11month high. Bargain hunters are now stepping in, following the italian referendum. The italian banks are on track for their best oneday gain since mid july and are back above the prereferendum levels, up nearly 13 . Skip over to monte paschi. State bailout for this troubled lender and government decree finalizing the deal could be rushed. The bank must raise 5 billion euros by the end of december to avert the risk of being wound down. Ecb meeting. Intelligence this morning says if the monthly purchases of bonds worth 80 billion euros are to be extended the ecb will need to change the programs existing procedures given the scarcity of availability to buy. Thats something to keep in mind. Euro trading at 107 against the u. S. Dollar. Carl . Seema, thank you so much. New reports amazon go may only be the beginning when it comes to jeff bezos plans. Studying at least three formats of physical food Stores IncludingCurbside Pickup and multiformat stores theyre calling it. 2,000 locations across the country. Joining us is the New York Times mike isaac and matt honan is the chief at buzzfeed news. Good morning to you both. Good morning. Mike, 2,000 stores youre getting in the neighborhood of how many Stores Kroger has. How much of this is feasible . A lot of what we saw, at least in the coverage yesterday, was of amazon go, this new sort of quicki mart type thing. You go in, you dont have to pay with physical cash. You sort of use your phone. We always see this sort of promotional thing from amazon that gets them a lot of press. So beyond that, i think that earns them the goodwill when they move toward these stores that will actually potentially make a big ripple in commerce, period, which is moving in to traditional sort of Grocery Store sector. And i think thats potentially dangerous, at least for a lot of the established players in the market. Safeways and krogers right now because of the efficiencies that amazon has with online ordering and instore pickup is something they need to really be worried about. What kinds of changes perhaps job destruction, could we be looking at here if we end up with 2,000 stores . Impact on drugstores, Grocery Stores, all kinds of stores if youre completing the transaction on your phone, driving up to the store and somebody is loading this into the back of your car. Is that something we should be thinking about here in terms of the next ten years . Right. Like theyre getting delivered by selfdriving trucks. Its interesting. The thing they mainly talked about is amazon go. Thats something where you are talking about eliminating human jobs but its a very small store. Its a Convenience Store size. These Bigger Stores depending how many people are packaging groceries, ringing out the cars if theyre going to do delivery, its hard to know what the real impact will be on jobs. Stocking these things and that does seem like it could have a longterm impact. Mike, weve been hearing about amazons ambitions in retail for years. Grocery and Technology Component of this are whats news. How long do you think it will take amazon to get this idea off the ground without much evidence to the naked eye to show for it . Look, the whole reason amazon really works and works really well is its margins are already razor thin for its online operations. So they have to figure out a way to really intelligently move into brick and mortar without increasing a lot of those prices and i wonder how do you do that and make it make sense for their overall business right now . One of the big advantages that walmart has, they already have these set up so that it can move into, as matt was saying, delivery from those stores, pickup in store. Use that advantage they have in brick and mortar. Amazon probably has to figure that out, which will take a really long time. Obviously, we cant easily predict how good this how well this technology is going to work. We had a long discussion yesterday about some of the challenges that self checkouts already had. If its a debate between this new technology and pickup in the traditional sense, who do you think wins . I dont think it will be either or. People are going to go to the store in seattle to see it because it sounds cool, right . Its been a long like that self delivery frapuccino coupon youve heard. Stores have wanted to eliminate the checkout forever. Because theyre doing that at a series of Smaller Stores doesnt mean theyll have that in these great big 10,000foot or more Grocery Store distribution centers. You might have both in a big city area. Yeah. Well if anyone yeah, look, the oh, im sorry. I was going to say behavior is really hard to change in people. Apple pay, android pay. Very small percentage of people using that. Imagine getting people to walk into stores and not actually pull out their wallets anymore. Its a hard, longterm problem. Amazon has changed a lot of behavior along with a handful of other companies. Well talk more about it in the months to come. Appreciate it, mike isaac, matt honan, thank you for joining us today. The tweet that started the debate. President elect donald trump going after boeing and air force one. But how much does trumps own plane cost . Well break that down when we return. There are many things you dont want in industrial strength like coffee. But theres one thing you do. You guys okay . its called predix from ge. The cloudbased Development Platform thats industrialstrength strength coming up on the half time report, why it says the trump rally has it all wrong. Tweeter in chief and why one analyst is positive on chipotle even as the companys founder is tanking his own stock today all in the Halftime Report in half an hour. Well see you in ten minutes or so. Lets get to the cmt group. Rick santelli has the santelli exchange. Rick . Thanks, john. Lets start off with the markets. Old adage on trading floors, you get the most volatility at tops and bottoms. Have you noticed much volatility with respect to highs and lows, ranges and closes in the equity indexes . I havent. Have you looked at treasury closes as of late . High yield close and one brief close for the most part its been under the 230s. This consolidation is significant and it may mean where many are looking for big retracements, consolidation may be the big retracement. Everything is about boeing, trump, tweeter in charges judge just pointed out. But im going to call this optics action. It goes back to everything we discussed regarding brexit, trump, tea party. He won fair and square. Look at the things that have been promised. Is there anything more transparent that a tweet . If you want to see what he says without having people in the middle try to tell you what somebody meant, as aska. Listen, its nudging. Is this really any different than the notion of quantitative easing, japan buying stocks, the fed talking about buying corporates . Where is the gray matter in government . You know, the people that elected donald elected a man that was employing to be an executive in charge of a country, and this is exactly what they want. Now, whether he can actually deliver or does he go further in the gray, i can tell you one thing. One of the major dynamics of many who voted for trump were that they didnt want the people they elected that consume a different diet than they do, says whether its retirement, their benefits, how they trade on what information, their health care. All of these issues. Trump, well, they like what he is doing. The only people that dont seem to like who he is doing are the traditionalists, and if you think this is going to be a traditional president , you obviously havent been awake. Back to you. Weve gotten a few signs so far, rick, its not going to be traditional. Well wait and see how this goes. Rick, thank you. Donald trump issuing that challenge to boeing and his team saying the message is clear. He is trying to save taxpayers money. Theres more here than meets the eye. Well explain after the break. A tweet this morning from president elect donald trump threatens cancellation of plans for a new air force one order from boeing. His team says the message is clear. He is going to save taxpayers money. Of course, the Current Air Force one is 26 years old. Something has to happen here. Robert frank has more. Robert. Hey, jon. One reason that trump is pushing back on the cost of that air force one is that his own plane costs less than onetenth of the new air force one. His private 757 200 is known as Trump Force One, and trump has long boasted that its better than the president s ride. Its got gold seat buckles, gold faucets, gold inlaid wood and gold lighting hardware. Its also got a stateoftheart multimedia system for watching more than 1,000 movies. Its got live tv anywhere in the world. Its got leather seats, custom dyed for mr. Trumps favorite color, and the trump family crest is embroidered on all of the sofa seats and cushions. He bought the plane from microsoft cofounder paul allen in 2010. He said he paid about 100 million, but sources close to the deal tell me it was less than 50 million. Now, he spent less than 10 million on the renovation and refit. The total cost of Trump Force One was you should 60 million. Lets compare that to air force one where two planes are expected to cost 1. 65 billion, or around 830 million per plane. More than 13 times trumps plane. Now, aviation experts say his plane is a little more luxurious at least from the inside and can hold more passengers, about 70, compared to the 43 for the Current Air Force one. But air force one, of course, is the technological marvel with antimissile systems, scramblers, massive communication systems, backup systems. The two aircraft are not really comparable. Based on the trump Gold Standard for private jets, its no wonder he is demanding a cost cut from boeing. Guys, back to you. Thank you. Coming up on quack alley. Comments from James Murdock. Well be right back. Top media execs are at the Business Insider ignition conference. Our julia borestein has the big headlines. Julia. Hey, jon. The big question is whats next for the Media Business as more people cut the cord and stream video instead . 21st century fox ceo James Murdock just left the stage. He said he sees huge opportunity for new digital bundles, like the one direct tv Just Launched and what hulu will launch next year. Just disputed the notion that television needs to be saved. I think theres a lot of the Television Business that we look at today, and we tend to define it as the existing business rules or whatever kind of income bensy the current players have. Actually if we look at consumption, video consumption, entertainment consumption, its rising. Its rising in the u. S. Its rising globally. Its rising across a variety of platforms. Murdock also weighed in on the pending at t deal. He said he does not think it puts fox at a disadvantage, but it does raise certain regulatory questions to make sure all content is treated equally over broadband pipes. There will be a big hearing on that deal in washington d. C. Well be following that as well. Awfully big story. Thanks, julia. What a morning, right . Luckily, the dow was behaving down only 10. Lets get to headquarters and the half. Carl, thanks. Welcome to the Halftime Report. Im scott wapner. Our top story this hour. The market has it all wrong. Those strong words today from the head of Investment Strategy for the Worlds Largest mutual fund company. The question, though, is he right . Joe terra nova, stephanie lirng, pete najarian. Lets begin with van gardes joe davis who writes that the market is getting ahead of itself and that growth isnt nearly as rosy as people think. We welcome in joe davis from pennsylvania today. Joe, welcome back. Thanks, scott. Thanks for having me. Why do we have it wrong . Well,