Transcripts For CNBC Squawk Alley 20170720

Good thursday morning. Welcome to squawk alley. Joining us this morning from one market in San Francisco is the former ceo of twitter. Currently the siceo of fitness startup core startup chorus. Good morning. Well talk markets. Im a one word person this morning. Yeah. This is going to be a very long interview, i can tell. Lets begin with the markets dow is down 22 despite the early trade. Tech remains on a terror the nasdaq aiming for ten Straight Days of gains, touching another all time high today. S p 500 index broke the nearly two decade old record closing above the dotcom bubble you have to go back to march 27th of 20000, dick. I know you had attention on valuations within specific sectors of tech. What is your take on these levels are they important i think the interesting things that happening in tech right now is in Public Sector is that youve got this real separation that the hyper Scale Companies, facebook, amazon, apple, google, are getting from everybody else if you juxtapose those companies against the recent issues, maybe over the last year or two, everything from cloud and snap and blue apron and the like against those hyper Scale Companies, i dont think weve seen that kind of separation in a long, long time. Youve got four companies there that might be trillion Dollar Companies in the next few years while some of the newer issues are kind of struggling near there, at or near their offering price. I think thats just curious and it will be interesting to see what happens there dick, thats what makes me nervous for investors in general. How do you think thats going to play out it feels to me from the Technology Side like were running on the fumes of the last cycle. The smart phone revolution, the cloud revolution sure, those are mature now and were able to build on top of them but weve really recognized a lot of the value there shouldnt that mean that perhaps theres a little bit more danger in these investing waters than these levels seem to indicate . The short answer is, yes. And i thought that for a while and ive been worried about that for a while. A little bit longer answer is that these things always go in waves, the tech cycles goes in waves. Youve got a number of companies on deck that are still private yet to be public that appear to be doing quite well. Everything from drop box to air b b and on and on. And, you know, those companies are setting up nicely for the next year or two, i would imagine. And then youll have another wave hopefully explosive growth. Dick, just to be clear, when you were talking about cloud air, did you say you think they can be trillion dollar platforms or no . Sorry, i was referring to facebook, amazon, apple and google four companies that are really the four hyper Scale Companies that are really get ago way from the pack when juxtaposed against the newer issues that are struggling its interesting you would even, you know, sort of snap having its own issues, cloudara maybe in a completely different segment having a more attractive opportunity set. You would still lump them together i just think its interesting and curious that these bunch of these newer issues, i would put blue apron and the issues maybe a year or more out, fitpit abit others that are really struggling to escape the levels at which they offered. And the interesting thing within Silicon Valley about that and importantly is the competition for engineers out here is fierce and if youre an engineer at a company and you dont see a lot of Equity Growth potential in what youre doing, there are lots of other things to go do. So thats an important thing to realize when you think about the values of the companies. So, youre saying unless there is a path to not just a public debut but a one that goes into the green, blue apron at this point would have trouble grooming or attracting engineers. Anyones equity that is not growing in value or, you know, or have some sort of Growth Potential ahead of it or at least have a story that they can describe to engineers who are coming in, its going to be tough to attract people. Engineers out here want current compensation and Growth Equity yeah. Interesting that you say that. A Family Member of mine who has worked at google for years got an offer from snap is moving south to l. A the decision is somewhat controversial. Last cycle if you were moving from an established company into a newer one, they just gone public, of course do you that. But in these days, its not so clear. Yeah, thats right. And so i think the advantage today is for some of the still private companies that are growing quite nicely and can tell the story about their previous private rounds and private valuations certainly because if there is a down round, they get asked about it when they come to this set, thats for sure move on to some media here, dick netflix out this week with rock Solid Earnings big bets on original content paying off you have discover and scripts in merger talks there are talks to reinvent television as twitter and facebook try to make a push for original and live video on the platforms. Are you feeling that were at some Inflection Point and the way content is distributed and, i dont know, produced 100 . I mean for the more Traditional Media Companies like those you mentioned, discoveries and the viacoms, et cetera, its rough because you got Companies Like netflix and like amazon that can bring billions of dollars to bear on acquiring content. And so when you can bring billions of dollars to bear on acquiring content, you know you dont have to be able to always pick winners you can just make a lot of picks and some of them are going to be winners. The more Traditional Companies that are operating within tighter constraints and tighter shareholder constraints, its a lot harder for them to, you know, to do that so i think that youre going to see, you know, an acceleration and the quality of content that youre getting from the over the top providers which is only going to in turn accelerate the move away from traditional cable bun bundles to over the top suppliers. The big surprise for me in this environment is youtube. It seems like youtube should be killing it right now i mean they practically invented online streaming video that can you watch from the browser they got the huge numbers of people watching in general but its netflix and amazon that really seem to be running away with the premium video story at this stage do you see it that way was there a mistake that youtube made in focusing on long tail, User Generated Content too long . Whats going on . Its you know, thats a great question i think the world of the person that is running youtube. Shes extremely smart and talented operator. Im sure shes got a great strategy over there. I think that i wouldnt count them out youtube red is going to make a big push into the same space that some of these other folks you mentioned, netflix and amazon, are competing in i think susan is going to try to possibly have it all with youtube red and youtube tv and the sort of long tail and trunk of content where you see some of the where you see facebook also competing. Dick so she may be able to do both things what about your alma mater, twitter in the video efforts here what do you think the strategy should be there . Well, youve heard from jack and anthony and the rest of the team there theyre making a big push into live theyve been doing that for the last couple years now. What you have to understand about the specific space that at which timer is operating in and seeing this a bit now with snap is that when youre competing directly against facebook, they can just bring enormous market leverage to bear against you and so you have to look for, you know, flanks, if you will, into which you can operate and move and create a beachhead and i think twitter moved to live content that matches very, very well with the twitter being the pulse of what is happening right now in the world is a smart move and im sure theyll execute well against it. Its been a fascinating move. Even krayem they are morning saying its quiestly become a bullish name at which timer is wol above 20 now. We want to get your take on google john just brought up youtube theyre coming out with the personalized feed product to give people personalized links from hobbies and travel to sports some say itdirectly targets at which time and facebooks news feed google does not report reports this week that facebook is working with news publishers on creating a pay wall for articles within the platform what happens when you have were talking about competing against giants but what about when it is giant versus another giant listen, in giant versus giant here, specifically google versus facebook, people come to think of the products and platforms for a specific thing i think people think about facebook when theyre interested in going to a feed based on a social graph people think about google when they think about search. And i dont see googles move into having a personalized news feed in the search app as particularly challenging to facebooks core. So, dick, do you think that facebooks move in separating messenger out of the main app which really seemed to turbo charge its growth, you know, its method of buying instagram and keeping it as a companion product thats going to continue to be the future, that efforts like this google to build the fee into their existing app just wont work i do. And i think mark and facebook have been very smart about the way they thought about the space of those different applications and the way they work with each other and support each other you know, for example, just tow l to elaborate on that, instagram is the platform through with theyre really going after snap. And then theyve got the mess enki e mess enking application thats they can do the more bot testing with Customer Support and purchases. And so theyve got the pieces that can support each other, that they can use to advertise and promote each other and thats just its an extremely powerful position to be in. Finally, dick, before we let you go, as were talking, elan musk tweets and im quoting here, just received verbal government approval for the Boring Company to build an underground new york, fill yishgs baltimore, d. C. Hyper loop would take you new york to d. C. In 29 minutes. And weve talked about musk before and his aspirations in space, on highways and i guess now underground. Give us your thoughts on where he is right now . How do you think thinks aspirations will match up with reality . He may be proof that time travel exists. He seems to have either more hours than n. The day than the rest of us have or, you know, or hes from the future hes just in all seriousness, im laughing because his ability to think cogently and thoughtfully about such a wide range of topics while running these multiple companies and seeming to be running them well is just i mean, its like it makes you shake your head. Its remarkable. I am pulling so hard for this look, who needs you know, dick, can you take to the airways. Can you try to revolutionize, you know somebody maybe theyre working on some sort of point to point flying thing. But elan musk has the tunnel machines going in l. A. , doesnt he he does it sounds crazy but were desperate for solutions here listen, when you say it sounds a little crazy, hes landing a rocket on a drone ship at sea i mean this is something hes done so you just, again, you just have to shake your head at what hes been able to accomplish and then what hes able to publicly announce hes going to try to do and then goes ahead and does in a number of fields all at once its just extraordinary and i think that i just dont think there is anything else out there like it. I think a generation ago we had steve jobs and bill gates who in a way were two sifdz the same coin. This generation we have elan musk and jeff bezos who are both, i mean, all over the place in terms of space and groceries and, you know, electronic cars but well see who can execute, right . Yeah, jeff also appears to be ready to participate in the cross fit games. So i wouldnt get too close to him and say anything negative about amazon that would be a showdown. You know, we used to have battle of the Network Stars on abc in the 70s costelo and baezos doing tire pickups. Jeff would hurt me with his left hand. I wouldnt get too close to. That. Dick, always a pleasure having you thank you for your time. Hopefully next time youre in new york thanks. We should mention, markets are lower. They hit the lows after Jeff Sessions was denying he would step down in a press conference this morning the dow down about 30. Yesterdays report that more than 130 people fell ill at that chipotle with symptoms of neurovirus they said while the restaurant was closed multiple teams performed complete sanitize to allst businesses and then earlier this morning, we showed you some disturbing video from a dallas chipotle location where rodents fell from the ceiling. A spokesperson responding saying, we learned yesterday that mice got into a restaurant and we immediately contacted professionals who identified a small structural gap in the building as the likely access point. Were having it repairs. Additionally, we reached out to the customer to make things right. This is an extremely isolated and rare incident and certainly not anything we would want our customers to encounter. Going back to shares of chipotle, theyre down a little bit more nearly 2 . Ive been in a lot skanky restaurants in my life its amazing to me thats at the chipotle footage that gets out number taco bell, burger king. Every single chipotle problem, we see it. Food is a tough business. When we come back, former sec commission oern the president s plan to wipe out red tape and roll back dodd frank. How sears is hoping alexa can turn arent companys fortunes later, californias plan to make it safer for selfdriving cars object road. Well talk to the director of the california d. O. T. When squawk alley comes back. [vo] progress is seizing the moment. Your summer moment awaits you now that the summer of audi sales event is here. Audi will cover your first months lease payment on select models during the summer of audi sales event. Theyre 5 00 sell raritying plans to stop rules including a review of the doddfrank financial reform joining us now is paul add the atkins good morning you to. Good morning. Thanks for having me so, you know, how much now that there is this renewed focus on whats going to happen with attorney general sessions and maybe even robert mueller, does that affect the deregulatory event of this administration i dont think so. I think i mean, regardless of what is going on the political front, if you look at the agencies and the departments of the government where a lot of this work is getting done at staff level and, you know, under secretary and below level, i think things are going along in a very good way. With review of the past eight years and regulation thats were pushed through that were done, you know, in the most, like, for example, doddfrank, the various agency tots last one that each one in the most onerous and costly way possible. So the law of demand and agencies look at cost benefit. I think thats now what the government is turning to do and its high time yeah. It was interesting Morgan Stanley streams and they were vocal about the need for tax reform what did you think of jamie dimons comments im sure you saw them. He sort of went off about the inability for things he had done in washington and talked about it being an embarrassment, you know, when he is traveling globally so for all that president s trying to do on the, you know with, that agenda, there is this feeling that, you know, that its holding a business right now. Well, i think jamies comments were really more aimed at, you know, the status quo the way the new people have found it and so and then the push back from various special Interest Groups and the Minority Party in congress that says, no, none of this stuff should be touched that was done in the past. And so i think jamies call and i heard him say this before and im glad he said it in that context of that call but is to call on people in washington to look at the cost, look at the potential benefits of having a regulatory structure hes right when we look at our competitiveness versus other countries, were really behind the eight ball on this big overhang of costs and debilitating rules that people have to deal with. So let me ask you about this. Heres what the president told the new york times. He said doddfrank is going to be modified. He wants rules and regulations he said you dont want to choke. People cant get loans to buy a pizza parlor banks wont loan them money anymore. We heard a little bit of this from other groups as well. So what might a change to that bill look like or are we talking about a repeal change on the bill will have to change on the statute will come through congress. You know what that means when we read about other things. So well see in the first instance, theres a lot that can be done in the regulatory agencies and like i mentioned with, you know, taking a new look at these things, putting them out for comment like, for example, the Labor Department has done, thank goodness with respect to the duty rule that the Previous Administration pushed through and really i think almost a travesty of a Regulatory Impact analysis so its high time the Labor Department look at that and before it goes into effect in january, you know, do something about that ule, for example, which will have really negative impact on average investors and people with small accounts who actually need advice so there is one example right there that government can do to good effect. And were seeing it like, for example, at jamie dimon is raising where banks are really ham strung becausest various ad hoc capital rules that Bank Regulators have imposed. And so i think for the various regulators to look at those things, that will help free up capital and make the loans that youre talking b because overall, with respect to loans below 1 million, since 2008, they are way down. Banks have made versus loans above 1 million and that just has it doesnt pay with all the regulation to make smaller loan thats why it takes a lot to open a pizza parlor. The president is exactly right. Quickly, before we go, you were there during sarbanes oxley. Do you think that now entire legislation needs to be reexamined. We hear time and again theyre trying to make it easier for companies to go public look, michael dell was crowing with how much he is enjoying being a private company. Sarbanes oxley contributing to this whole idea that Public Markets arent worth the trouble. Well, i think the new chairman of sec jay clayton did his made envoyage speech last week and he did i think a very good job in laying down a number of markers and focusing on this issue and the cost that it entails to become a public company. And so like michael del said, there are a lot of Companies Like uber, for example, despite all their recent troubles, i mean, they have not had to tap the Public Markets we used to have a very vibrant market for ipos and those things 20 years ago was the High Water Mark with 700 some back in 1996. Last year was 100 some all of this stuff comes together i think its great for the sec to look at, you know, the real costs versus versus the public company. I dont think we want to go back to the late 90s maybe happy medium thank you for joining us today thank you good to get your point of view thanks. When we return, sears plan to use alexa in the latest sales push well talk to business insiders about that plus, another record high for the nasdaq, longest win streak in a couple years. The dow is down 53 and the subpoes p 500 has just gone into the red and we are keeping our eyes on the major averages. The s p 500 and nasdaq hit all time highs off session highs tech topping record levels set back in march of 2000. Joining us now is editor and chief and founder of business insider. Great to you have. So youve been skeptical about this rally for a long time yes almost as long as the rally itself. Yes. So you are tempted to cover your philosophical short here . Absolutely not. The higher it goes, the more concerned i get. Whats interesting is on the opposite side i was in the 1990s. We had the big debate between the 1990s. The market keeps going up. There are the bulls, the skeptics we havent seen it before. So i had a sense of what the folks who were wrong all the way up in the 1990s felt but now i get the pulse. My concern is valuation. Val situation a lousy timing tool what it has been good for in the past is getting you a sense of what the Long Term Return is likely to be and given where the Broader Market, is not tech, but the Broader Market is right now, were pricing in 1 returns for the next decade. Its really low. And the volatilities now super low which often is the cam am before the storm no, im going to be quiet. I dont need to get hit with a baseball bat but still concerned about it. Every time youre on we talk about massive disruption in retailing, in tech, in mobility, in finance all funded by easy money which apparently isnt going anywhere. Right . Apparently not. It doesnt go anywhere until it suddenly disappears in 2007 and 2000 but tech interestingly, the tech surge, the stocks are expensive. Facebook sitting here at 40 times earnings it will trade at 20. We know that we get gradual compression over time but what is happening in tech is easier to understand you look at these companies. Theyre so much more scaleable globally than anybody thought. And so much more scaleable gloeg global globally than the an logs like a retailer or other company or what have you. There is no reason that stops. People keep saying its got to be done now. There is so much growth and it sounds like youre covering a philosophical short here. This is of tech ive always been supportive of tech. So the bearishness is pliz for to the Broader Market. Its not a timing call. I have no idea but if were sitting here in five years and the markets double from here and its never wavered, ill feel like even more of a moron. Put it that way. Meanwhile, shares of sears surging this morning the Company Lands a deal to sell the kenmore appliances on am zot. Com. More kenmore smart skills for amazons alexa platform will allow customers to control their appliances using voice commands. This is as amazon turns 22 this week and hits all time highs henry, you still investor in amazon yes happily. You were an investor, jeff ba bezos was an investor in your company. Which appliances do i really want to control by voice command . You know all of them we have to decide in the household where to set the thermostat you know, somebody might want it colder do you really want to be, you know, arguing over the thermostat and having the temperature change or is it really any good to tell the drier to stop while youre gone . Somebody is going to create a jarvis from ironman control of your house zuckerberg is in good position to that. Hooking it up to a few more appliances i heard jim ridiculing the idea you would ever talk to alexa about your dishwasher, agreed. But refrigerator its been a while since i looked into kenmore aplinsz last i checked they made refrigerators. What do you want to talk to the refrigerator about what do i need to order order it for me from whole foods and deliver ate and i dont want to know about it milk get it in there, somehow well fix the last mile. I can see that connection. This is a great deal. The stores have been year after year starting to look like countries where there is no inventory left the shelves are empty. This is great. Taking good brands and sell it at amazon with great distribution, smart. We pointed out whirlpool down home depot down. Some believe that there was a physical limit, the limit to the physical properties of things that could be delivered by amazon right . Either too big or too heavy. They couldnt ship everything. Thats being revisited today absolutely. And what is really being revisited is the distribution. This is where retailing is getting killed on the disruptive side its a new form of distribution. Its more efficient. We still need appliances its a question of how you get them out there and who has the most efficient distribution system. That is a puzzle for amazon to solve how do you move appliances in an efficient way . Are we talking about more trucks, train, cars . Getting that last mile piece of it which can be really expensive and takes some time. Yes but there already is distribution obviously sears is distributing the things all over the place with trucks. Amazon will continue to evolve its own distribution system. Its basically running a mini fedex as it is now now theyll have the last mile with whole foods you can see where theyre headed probably takes a long time to get there. Eventually well wonder how many different robots can you talk to in your house . Alexa, siri. Yeah. We talked about this arent table. I figure it standardizes on one, jarvis. No, i use alexa for groceries and weather and google for my calendar. It is going to get crowded. Alexa, i thought i told you to order the groceries great to you have. Europe closed five minutes ago. Lets get to seema mody. Its not what drogy did, its what he said that the market is paying attention to take a look at european stocks lower in wake to have days kmengs kmenlts from the ecb president. The real action in the currency market the euro surging to more than one year high after draghi said that the policymakers would discuss the changes to the bopd buying program in the fall now at his News Conference in frankfurt today, draghi urged patience with the stimulus policy despite better growth in the eurozone. Listen in. We arent there yet and thats why i used repeatedly the concept of together with confidence that in the end well get there. The concept of persistence or patience, persistence in keeping the current stimulus in place. We saw a surge in the euro. A different story in the bond market he comments moves in the german ten year bund. Yields at the lowest levels since july 6th what does that mean for the spread take a look at the spread between these spanish and german tenyear yields. Tightening to levels not seen since march of 2015. So definitely some big moves in the bond and currency market in reaction to the ecb meeting. Take a look at earnings. Unilever posting better than expected margins for the next year they rejected that 143 billion takeover bid from krafthines. Lets get a news update hi, carl. Heres whats happening at this hour the Senate Judiciary committee unanimously approving the nomination of Christopher Ray to be fbi director. The nomination now goes to full senate for a vote. President trump nominated ray after firing former agency chief james comey. Venezuelas open decision blocking streets as it calls for the First National strike since 2002 the day long strike is meant as an expression of national disapproval of president ma dor yoes plan to convene a national asemiconductor my to reshape the countrys system. More problems for chipotle. Mice were seen running in a store in dallas. The Company Called the invasion an extremely isolated incident saying they got inside through small cracks in the building meantime, tests confirming neurorye us have in a customer who ate at a chiptole virginia location the album which john lennon signed for his killer hours before he was shot outside his new york home in 1980 is up for sale pricetag, 1. 8 million the signed album was found in a plant pot outside the building by a passer by the night of that killing. And that passer by gave it to police thats the news for this hour. Back to squawk alley. Thank you sue her air yachlt. Straight ahead, californias ambitious plan to make highways safer for self driving cars. There can you seeshgs it involves the lines on the highways first, Rick Santelli, what are you watching today im watching humans stay really busy onthe floor here theres a lot going on in here its really interesting though many of these traders had trades where they thought mario would be dovish. What happened next maybe well need to call the ebi to find out. Nen tethbrk. Bi tu iafr e ea legendary investor Mario Gabelli is us for the hour hes going to help you find value in this record setting market going to take your questions as well tweet them at askgabelli. Carl, well see new 15 thats cool im sure a lot of views have a lot of questions thanks, scott. Roads in california seeing a face lift as the race to get self driving cars on the market continues. The California Department of transportation has a plan to make the states roadways safer for cars using Driverless Technology for example, wideningthe lines on highways from four inches to six inches to make them easier for sensors to pick up for more, were joined by California Department of transportation director malcolm doherty. Thank you for joining us. Good morning. Good to be here. The bit about the highway lines got a lot of attention yesterday. How much of that is partst overall plan and how big of a project is this well, i mean, its a very important part of the Autonomous Vehicle develop ment but its also important for the General Motors Everybody Needs to be able to seat delinquent yags on the highways and roadways whether youre in a city or on a highway. So as we went to update our standards, we certainly took into consideration the Autonomous Vehicles being out on the roadways in the future and what they may need from the infrastructure to be able to operate. And the delineation is a very important part of that so as we look to update that, we thought it was a benefit to the human motorist and also to selfdriving cars in the future. They need to see where they are on the roadways as theyre operating. Malcolm, raised a concern for me maybe you can clarify it seems to me philosophically that computers ought to be good enough to live in a human world. So is this really about making changes so that the computers can drive or is do these road changes with the lines actually make it better for humans as well getting rid of the dots . I think its both we all experienced somewhere when driving on the highway either in the wrong light or at knig night or the rain where the delineation is not clear we want to make sure that were going to make that as clear as possible but also today as vehicle, as Autonomous Vehicles and that technology is advancing, in california alone, we have 36 companies that have permits to test Autonomous Vehicles on public roads as long as we were visiting that subject, we want to make it better for human driver and also look to the future with the onset of Automated Vehicles and i think this also will assist them in their operations going forward. So i think its for both how much will all of this cost where is the funding coming from so we are constantly refreshing the delineation on our highways all the time. So there is a certain amount of cost in the materials that we put down theres a certain amount of cost in the equipment and labor that goes down. The equipment and labor is no additional cost. The thermo plastic is a very hightech paint that we put down has a reflective ti to it and there will be some additional cost but not a significant additional cost. It will come out of the normal Maintenance Program that we have in the state. Malcolm, i assume the department is having to build at least some internal forecasts of what selfdriving may account for in term of market share in five years, ten years. How where when do you think it reaches Critical Mass walk us through your expectations well, thats a very good point. Its something that we all as owner operators either at the state level and state highways or even with cities and county roads. Were going to have a mixed fleet for the foreseeable future as the Autonomous Vehicle comes on and increases in percentage, youre always going to have or at least for the foreseeable future have human drivers. Now that will be a predominance of drivers for the next two, three, four, five, ten years but 15 years, 20 years, 25 years from now the Autonomous Vehicle is going to play a larger role but there is still always going to be human drivers. So as we look to the geometry of the roadway, we need to take that into consideration. We cant assume theyre going to be all Autonomous Vehicles for the foreseeable future. Well, we talked on this desk a long time about how municipalities and law makes have to keep up with the innovation in europe youre a prime example of that we hope youll come back thanks so much no problem. Thank you. Malcolm doherty, the director of the California Department of transportation straight ahead, the company protecting the skies against reckless drones. Squawk alley will be back after this dow is down 47 lets get to Rick Santelli and get the santelli exchange. Hi, carl. Hey, anybody take a peek exchan. Hi, carl. Anybody take a peek at where the euros trading, 116 handle listen, earlier i said if you want to know whats going on, you have to call the ebi the euro bureau of investing all right. Lets get this straight. Mario draghi comes out, most people on this floor said he will be dovish they will be long the dollar, short the euro because euro should go down if hes dovish, so they were dovish, they were long the dollar and they were wrong. Thats the way it works. Now does that make sense not necessarily, but thats why i call it the ebi. There used to be a time when the market was in control, and we could argue its been a long topic. I dont think anybody said it better than jim grant, mr. Bond himself yesterday, radical Monetary Policy begets more radical Monetary Policy. Its salting i think mario draghi, ben bernanke and janet yellen said their mission is imposition and tom cruise is nowhere to be found. Thats the reality of whats going on you can trade the market and you can try to trade the signals, but sometimes its just better to go along, which brings me to the next topic for the most part markets in many ways are becoming like public utilities, okay Central Banks need more radical policy for the exact reason that dovish long was wrong. Its not about taking policy off, its about the fact that these are just people. They get nervous they dont want to be pointed at when the market has volatility or when the markets are disrupted removing their policy that the markets have priced in and gotten used to i dont know how this game is going to end, but i had an idea about how it might end maybe we should call cbo, congressional budget office. You know, their work isnt really very accurate, but theyre nonpartisan. So ifpolicys implemented in other, its going to cost other money. Has anybody ever tried that line of lochblg beginning with the cbo . Maybe we should call up. Maybe congressmen should say, the Federal Reserve is doing this, this and this. How many people will be more better off and have better jobs and worse jobs how does it impact savers and retirement wouldnt we all like to know i find it so fascinating that the cbo in certain areas are never very accurate but its the one place all politicians want to run the Central Banks control a lot of money i hear crickets in terms of trying to monetize then quantify how their policy affects your wallet carl, back to you. Rick santelli in chicago. Anyove mh. Llai thk u ryuc when we return, protecting the skies from errant and malicious drones dont go away. Well, have you seen her work . No. Is it good . Good . At cognizant, were helping todays leading banks make better lending decisions with new sources of data so, multiply that by her followers, speaking engagements, work experience. Credit history. That more accurately assess a business chances of success. This is a good investment. Shes a good investment. Get ready, because were helping leading Companies Lead with digital. Your insurance on time. Tap one little bumper, and up go your rates. What good is having insurance if you get punished for using it . News flash nobodys perfect. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. Switch and you could save 782 on home and auto insurance. Call for a free quote today. Liberty stands with you™ Liberty Mutual insurance. As Drone Technology sky rockets, literally, in popularity for both consumers and enterprise customers, there are Companies Helping tackle the problem of malicious drones. Our next guest is one of them taking over rogue drones, bringing them down safely. Today theyre a nonsing a contract with the department of defense and new investment led by andreson harwood. Grant jones is with sky safe great to have you with us. Thanks for having me. Some of these regulations around exactly how you have to register, now you dont have to register for drones, making headlines recently is that kind of a catalyst for you . If there are more drones in the sky being flown by you know who, do we need more drone mitigation yeah. In the last couple of years weve seen with the tremendous rise in the availability and capability of consumer drones weve seen a lot more incidents of drones flying where theyre not supposed to be, whether thats prisons, stadiums, event venues or over seas were seeing terrorist groups fly them on the battlefield and weaponizing these drone systems. Do we need to regulate who gets to use the drone Mitigation Technology i imagine somebody could set this up in a public space. We work closely with all of the customers that use our technology, you know, like any technology, we need to control exactly how its used, make sure its used for the right purposes just like the drones themselves. Right now a lot of our focus is on helping the military over seas grant, i was more concerned about the consumer drones annoying people flying over the backyard obviously what youre talking about is a much bigger deal because i was asking if you hated eagles and trying to put them out of business theyre always swooping in and intercepting the drones, but it sounds like youre on to something much, much larger than that yeah. Absolutely well, i think a lot of it is not just about the near term and how you stop these individual drones right now but its about keeping up with the threat into the future its about staying on top of it. Like any Security System, like any security techniques, its about analyzing the current threats, staying on top of them and staying ahead of the game. We also need to work really hard to be able to address new issues like swarms of drones and more importantly, our big focus is in really enabling the drone industry, enabling the commercial uses of drones and making it so that you can use drones for good things in all of the areas where you need to. So that you dont just have blanket regulations saying no drones at all, instead whats important is having the enforcement tools so that we can draw the lines of where drones can and cant fly and do something about that grant, how far are we away from the time where drone mitigation becomes a pretty basic consumer need . Tell me in years wherein stead of, you know, adt, front point, whatever your Security System might be, youve got that plus drone mitigation because you dont want some rogue drone flying over your Swimming Pool in the backyard. Well, certainly the questions about where the lines are on privacy and Public Safety havent quite been determined yet with where drones can and cant fly and kind of who has the authority to do that enforcement, but i think for us, especially in the near term, in the next few years, the biggest focus is on critical air space, prisons, stadiums, critical infrastructure, oil and gas, you know, places where drones just definitely shouldnt be flying and if there eyre there, they a threat to the public and need to be stopped. A topic with a lot of peoples interests grant jordan, ceo of sky safe. Thank you. Markets obviously trying to recover from a spill earlier in the session when bloomberg ran a headline that special investigator mueller is looking into the president s private Business Practices meanwhile, chipotle is going to make another run at its lows for the year below three sixtythree. The number of illnesses linked to this virginia restaurant reportedly over 100. People will be watching that situation. Nike up 2 on an upgrade from Morgan Stanley. Tonight microsoft, capital one. Busy day tomorrow. Lets get over to wapner and the half. Welcome to the Halftime Report im scott wapner amazon wars as another sector comes under attack from the tech juggernaut is anything safe from the bezos ba zuk ka . With us is joe, jim and josh and Mario Gabelli is here. He is the chairman and ceo of the gabelli funds. Lets begin with the amazon and new group of stocks getting hit today. There they are on the wall home depot, best buy, lowes, whirlpool . Best