intel does. they design them. and they are basically an intellectual property firm. as everything becomes a computer, they are really important. about 15 billion chips with arm designs shipped last year, up from about 6 billion in 2010. so lots of -- obviously the smartphone revolution has been huge for them. but everything is a computer now. so arm has really capitalized on that. >> about seven years ago, i went out to cambridge in the uk and did a feature for "fortune" magazine on arm. they were at a plateau period because smartphones hadn't really taken off. there were questions about whether they'd be able to take on intel. they successfully did that. now another period where smartphones are successful but their growth has starred out. and now they're looking at the internet of things. the challenge that arm has had, and they were talking about it seven years ago about the idea of smart washer and dryers and refrigerators. there was no single player that was going to drive that market the way nokia did initially for cell phones that put arm on the map. apple is talking about it. google is talking about it. samsung is talking about it but nobody has really driven that market yet. somebody has to. >> guy, as we think about softbank being the owner and proprietar of this business, do you see this more as a financial bet or do you see softbank wanting to use arm's capabilities for things like the robots it's building in house? >> i would think it's a combination of both. both financial reasons and also for strategic reasons. it's one of those things you look at and say, wow. why didn't i think of that? >> but on the other hand, this acquisition to me doesn't make sense unless you continue on strategy of trying to be everywhere and make a little bit of money off of every single thing that's smart that sells. so it's going to be an interesting needle for softbank to thread. they've got to not raise licensing fees so much that their partners think about going elsewhere, but at the same time, build on technologies in graphics, in wireless and other areas they can sell and make more money for customers. >> and that's probably one of the good reasons why apple has not n probably will not buy arm. that's something people talked about for years. the iphone is probably the most successful single arm device ever. but i don't know if that's true. i just made that up. it sounds right. but what you said -- >> you should run for president. >> if it's in everything. so if one company owns it, apple or, you know, samsung or something like that it may be more tricky for that to work out. >> do you see softbank as being a platform agnostic owner that can do business with every company? >> sure. why not? they don't make a computer. they don't make a phone. absolutely. i think this acquisition makes a lot of sense relative to some lately. yes, great acquisition. >> what do you think did not make sense? >> well, i'm still trying to wrap my head around microsoft and linked in. i don't have the iq to figure that out. >> we doubt that very much, but we like the modesty. apple is above 100 for the first time since june 6th. netflix reporting tonight after the close. analysts expecting earnings of 2 cents a share down from 6 a year earlier on $2.1 billion in revenue. obviously, some of the potential worries are slowing user growth and sluggish international expansion. in fact, guy, some of the downgrades or downward revisions we've seen on netflix are directly tied to things like brexit. do you think that holds any water? >> that's a stretch for me also. what does brexit have to do with netflix? tell me about this. >> i hear you. the call specifically, dan, was about nervousness in the medium term. and households, and countries in europe and that a netflix subscriptiop is easy to shut off. >> it's an incredible value. people are really happy with their netflix subscription. it's not growing nearly as fast as it used to, but it's still working. works for me. >> brexit having an impact on netflix, john is not the craziest thing when this company had a lot of stumbles with a credit card chip transition. we didn't think that was going to be a game-changer but that caused a lot of turns for the company. >> the way oouf been looking at this is these companies that do streaming and cloud interaction, to some extent mobile, they have fewer barriers in a situation like this where trade relationships become -- come into question. when you are talking about moving bits from one side of the world to the other, there are a lot more restrictions than if you are talking about moving lumber or steel or people and dealing with what passport do you have and how hard will it be to get it. when it comes to netflix streaming, "orange is the new black" into a country. not as many restrictions. so in a way, that's a positive for them as it gets difficult for people to consume goods from other countries that are physical goods. it's not that much harder for them to consume digital goods. that's what netflix traffics. >> is that the digital soverei n sovereignty we've heard about. >> if the uk pulls out of europe in five years or whatever. that's my thinking. >> "house of cards" plot. >> ooh. >> you mentioned "orange is the new black." what we should be concerned about is if donald trump becomes the president then truly orange will become the new black. >> all right. that joke has been made before by the president himself. >> it's a little scary. >> guy, meanwhile, keeping an eye on yahoo! tonight. the company reporting what is more than likely to become as the company looks to sell the bulk of the core businesses and like surge and mail and d list. how much longer does risa meyer have since taking over four years ago. >> my colleague kara swisher in california reporting this morning, early this morning that some people inside yahoo! are talking about marisa possibly leaving very quickly. also the possibility that she won't and she'll integrate with whoever wins the auction. or none of those things. there's even a crazy option c where yahoo! stays yahoo!. i'm not sure how realistic that is. >> marissa mayer has had a really strange run here. came in as one of the celebrity ceos that tend to get a lot of focus. like the jack dorsey, steve jobs, fill in the name. these name brand ceos that people have these perhaps too big expectation on that they can make a huge difference. guy, you have known a few big personalities out in the valley. how do you rank marissa mayer's tenure n the lead-up and for a lot of people, letdown. >> well, to tell you the truth, it's not a hot topic out here. i don't think anybody cares anymore about this. so i think this is an impugning of the halo effect that early employee at google, therefore, you must be insanely great. you can lead any company to victory. lots of things have to go right for anyone. even steve jobs could not succeed in his next company next. so the halo effect has to be checked. got to watch out for correlation and causation. and she was put in a very difficult job. and apparently, she didn't succeed. >> and a lot of the metrix -- >> that's how it goes in silicon valley. >> a lot of the metrix she laid out for herself she was not able to hit. the journal has done a deep dive on what those are. can the company focus on the core business or is it going to be about whatever morsels the street wants about this sale process? >> i think the big picture is that yahoo! was supposed to be as good as google in many ways under her leadership, and it's not. it's a declining asset. there's still something there. you still get a link from the yahoo! page. you can go home. at least in my business, you -- >> you are talking clicks. >> a lot of people reading yahoo! and useiing yahoo! for e-mail, finance. >> sports. >> the growth areas are not growing fast enough to make up for everything else. and, you know, the brand has -- is losing value. i think that's it. >> if we remember, apple in its darkest days, having gone through that experience if apple can return from its darkest days, so can yahoo!. >> i think that's what some of the bet on tumbler was. tum ber bler is still a thing. but it's not -- yahoo! is not changing its name to tumbler inc. >> so can blackberry. still a lot of companies that still have a shot. >> guy, thank you. guy kawasaki and dan, thank you. don't miss an exclusive interview with former yahoo! interim ceo ross levinsohn at 12:00 eastern on cnbc. turning attention overseas now and the latest on the failed military coup in turkey over the weekend. let's get to michelle caru caruso-cabre caruso-cabrera. >> massive crackdown against the alleged perpetrateors what the government says was a failed military coup friday night. 9,000 officers have been removed from the ministry of the interior. 50 civil servants ousted. the video we're showing you is uf eight turkish military men as they appeared in court in the northern greek city. they face charges of illegally entering greece after landing their military helicopter in the country saturday after issuing a distress call. turkey is seeking their return. all eight have requested asylum in greece. their lawyers said they knew nothing about the coup and the helicopter was used to transport the wounded. more than 200 killed, 1400 injured in the violence we saw friday night. 7500 people arrested so far. there are a lot of numbers out there. we're giving you generalities. the stock market in turkey sold off hard today. the biggest one-day decline since june 2013 when the market then lost 10.5%. today a decline of more than 7%. down 9% at one point. let's show you the lira. this will be the big focus of economists around the world. turkey is reliant on foreign inflows of capital. they have a current account deficit. if there is capital leaving the country, it's going to cause a big problem. right now you'll buy 2.96 liras for every dollar. at one point this morning you'd get three. it's come off the bottom but certainly concerning. you can see the big move it's had. the ten-year yield has shot up. three-week high, 9.5%. looks big there. but in this world of low interest rates, we have to show you the year to date. and you can see while it is a big climb it is still way off the highs we'd seen earlier in the year. yields are going down all over the world. kayla, back to you. >> michelle, thank you. we want a check on broader markets at home. global uncertainty kept a lid on equities from the open. the dow, s&p and nasdaq have managed to chalk up some gains. the dow up 31 points. bank of america reportedly -- reporting quarterly profit of 36 cents per share. 3 cents above estimates. revenue also beating forecast. profit falling from a year ago. those low interest rates continuing to impact the bottom line of bank of america and the entire banking sector. the stock up 2.5% on a new expense target that management gave the street. google is abandons its plans for a high end vr headset. alphabet class a up. that had been a big ticking point just a couple of months ago. when we come back, more than 150 of the top names in tech wrote an open letter standing up against donald trump's run for the white house. one of those executives is going to join us next in a cnbc exclusive. plus, the mind behind starz most bingeable series" power." and how one investor in the company behind pokemon go saw a potential for profit months before the game hit the stores. more "squawk" in a moment. announcer: alvin and the chipmunks want to remind you-- bacteria can hide in food and make you ill. wow! announcer: but you can keep bacteria from ruining your day with 4 simple steps: clean. i'm ready for the rinse cycle! announcer: separate. all: woah! announcer: cook. fire in the hole! announcer: and chill. chipmunk: we chipmunks are notoriously tidy. announcer: check your steps-- the roadchip to food safety starts at foodsafety.gov. chipmunk: whoo! this is awesome! billionaire investor peter thiel set to speak at the republican convention as more than 150 tech companies have pen an open letter to donald trump standing up against his candidacy saying he'd be bad for innovation. the former u.s. chief technology officer and one of the co-authors of that open letter. aneesh, what was the goal of that letter? what do you hope it accomplishes? >> we want to set the record straight. this is a really important electi election. you can't find two more contrasting views of what it means to bring the power and potential of the internet and grow the economy and make inssu everyone has a shot at the american dream. >> is it about the internet and the comments that trump has made about shutting down parts of the internet to bolster our national security here or something bigger than that? >> well, the human talent, the immigration issue is the personal driver for me. if you take a look at our history, we are an innovation economy in part because of the strength of our immigration focus. 40% of the fortune 500 have had ceos that are either immigrants themselves or the sons of immigrants. start-ups all across the country, not just silicon valley, have disproportion atly included immigrants in their founding teams. the rhetoric and policies on immigration are the biggest issue on the tech and innovation agenda. for sure his views on shutting down the internet add to the challenges, as well as his lack of coherence about how to build an innovation economy that works for everyone. >> what is next? there are some big names signing on to this note. a lot of you know how to do a lot of things with technology that can have an impact on this election. i don't think many people are surprised that a bunch ever folks mainly from california aren't big fans of donald trump. how is this group going to make its presence felt beyond expressing these sentiments in writing? >> i think everyone will speak for themselves, but for me personally, i'm going to do everything i can to make sure voters in my home state of virginia and others understand the stark contrast we face in this election. if you believe that we're on the right path, we're making progress on making sure that we can expand opportunity to everyone. if you want to see every young person have the shot at the american dream by getting access to the resources they need to be successful, you'll do what you can to step off the sidelines. i can't speak for anyone else who signed but, on a personal level, many individuals have expressed a great desire to help stand up and make sure that hillary clinton is our next president. >> i wonder what your best answer is to someone who sees immigration through a national security lens. certainly you must at least empathize with what they're feeling given the state of the globe. >> there's no question there's an anxiety that's all across the country. and i saw it all across virginia where i was traveling quite a bit. there is a significant amount of angst about where we are in the economy. n that's why speaking up on this conversation is important. while there are concerns about how we can handle security matters, they cannot run at the detriment of what makes america america. and that's why you saw the language that we used in the letter. so this is a trade-off. this is a choice. i hope the american people will find that opportunity and success for everyone will triumph over fear and calling back. >> there is some irony, though, because the m.o. of silicon valley is to disrupt the status quo and disrupt old line industries. some would say donald trump is just disrupting politics. what would you say to that? >> i'm not a political prognosticator to say he's up or down. clearly he is successful in achieving the republican nomination. but this is not about sort of the political campaign, who is up and down. this is about who is going to lead us in the next several years to make sure that we have a chance for everyone to have a fair shot at the american dream. it's about policies and leadership. and so, you're right. there's a great deal of stories will be written about how he was successful in winning the nomination. but this is about the future of the country and policies, not so much about the political success. >> and we're going to hear more about that, won't we? >> we will. aneesh, we appreciate you weighing in on that. its star's highest rated show. coming up the brains behind the drama "power." we'll be right back. that's a great idea, but why don't you just go to thinkorswim's chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders? i know. your brain told my brain before you told my face. mmm, blueberry? tap into the knowledge of other traders on thinkorswim. only at td ameritrade. season two of "binge" is streaming now. first episode this time around is with bryan cranston, the star of "breaking bad" and the new movie "the infiltrator." just nominate forward his portrayal of lyndon johnson in "all the way." we talked about his latest film and how he picks his roles. >> one of the stories when i was talking to his daughter and he said there was a code when they were driving around in their family car. and bob was always scanning, looking in the rear view mirror to see if he knew anybody. they could be anywhere. so they'd have a code word. if bob said this code word, the kids would just fall to the floorboards and not move and don't say a word. and i thought, oh, my god, what that must have been like. these little things are the spices that go into creating a character. you keep collecting these things until you know what you can do with it. >> is it true that you once made a grid? the cranston project assessment spectrum? >> yeah. >> and you would assign a value to director, stories -- >> yes. it's a cranston assessment of projects system which is c.a.p.s. because there were so many things. there were so many -- how do i decide what i should take advantage of. and so i had to really clear my head and go, wait, individually rate just the value of the story. talking to the director and perhaps the other actors and whether or not it would take -- >> for more on the content industry let's bring in courtney kemp. executive producer and creator of starz series power which has been starz highest rated show. good morning. >> great to be here. thank you. >> i'm fascinated to know whether it's from cranston or yourself how the avenue of distribution is playing in your decision of what to produce, when to produce it, who to cast, all of those things. >> well, you know, i think the traditional way is how i was brought up. i'm right at that generation of television creators where we came up having those traditional, you know, distribution platforms. and it's really now that the netflixs and hulus are starting to be something that people consider as the first idea as opposed to the secondary idea. when we took power out, we were first going to the traditional platforms and starz said yes. i don't know what it would have looked like had it happened now instead of four years ago. >> and then you got a deal with a plethora of options about how the content will be delivered. is it week to week? is it all a season in a row? i assume those have extreme creative consequences. >> well, i think for us, because we are a week-to-week show, i feel very strongly that we have a really high bar on trying to get people to come back every week. because the show is not available all at one time, you know, people can't just sit on the couch when they have three hours unless they wait until after the show has been aired fully to watch three episodes in a row. i always feel like i have to show a little ankle in terms of storytelling to get people to come back. >> and how has your job changed over the last few years? there are so many difference ways that people are consuming television. my wife and i, mostly my wife, watching "the good wife" now, old episodes. i know you worked on that. how has this new wave of television changed the job of putting together a series of writing in a way that keeps people really wrapped? >> i think there's something like over 400 original series on tv now. if you consider all the platforms. so it's just far more competitive. when i was growing up, i don't want to date myself, but it was channel 2, channel 4, channel 7. it wasn't the same thing as it is now. so i think it means you have to raise the bar. you have to do better. you always have to be higher, faster, stronger. you have to do better storytelling to stick out. >> now that there are so many different fragmented types of distribution, i'm wondering if you think that there's still a storytelling niche that hasn't been uncovered. there's still a subculture that hasn't been tapped into. so many of these shows have grown cult followings that are smaller than they would have had they been to succeed on traditional network tv. is there still a lot or subculture we're missing out there? >> some of the most original ideas i see come from actually youtube content from young people who are just grabbing a camera and telling their specific stories. and that can be very exciting. you know, i look at someone like isa ray who did "awkward black girl" for example and now she has a show on hbo. i look at her as someone who had a new voice and came in through it like a nontraditional way. but i think that's a great thing about twitter, about tech. it evens the playing field to some extent. and that's where we're going to see the more interesting and nontraditional forms of storytelling. >> do you worry at all that we're in some kind of content bubble? at least scripted content bubble that eventually is unsustainable? people will just not make enough time in their day to watch these many hours for that long? >> hasn't happened yet. i mean, i think people are making time now. i'm so grateful for the audience response we've had to "power" and people telling me i'm watching episodes over and over again. i was on a new york city subway not too long ago and the guy next to me was watching "power" on his phone. he made time betweens times square and 96th street. he seemed to figure it out. people will always find a way to ingest content, for sure. >> certainly affects everything we do here working for a media company. we hope you'll come back. fascinating insight, courtney. thanks so much. >> thanks very much. have a good day. >> courtney kemp of the starz series "power." europe is closing just as we speak. the dow is about 17 points away from a new record high. simon is back to wrap up europe's close. >> what's really interesting is the continued immunity from geopolitical events in europe. the turkey coup friday into the weekend and europe drifting higher because of the open we've had here on wall street. the dominant theme of the week is going to be the european central bank meeting on thursday. the first one since brexit. unlikely to act. probably waiting for the bank of england to come through. just in advance of that today, they've published final for the first time the corporate bond purchases they've been making under the extended qes. they put out it's rather unhelpful because they've just listed the 12-digit numeric codes from the nine central banks that have done the buying. no indication of what the pricing is. the big news today is obviously that softbank is buying arm holdings, the chip designer in the uk for $32 billion. the currency effect and obviously it's a huge premium. we've spoken about it throughout the show. you can see the way in which the stock has risen. the currency effects are fascinating. see as the brexit vote came through you see arm rising anyway. that's partly because it earns most revenue in dollars and it's translating back into a pound that had obviously been slashed and, therefore, was worth much more as a company locally. but, of course, the overrising theme is the move you had against sterling against the japanese yen. look at one-year chart of where we've been on that. you can see how sterling has declined essentially by one-third during the course of that period of time which is why it's so affordable, of course, if you are buying from tokyo into london. and that may be a theme that we see played out in the wake of brexit. as far as the turkish fallout is concerned, you might have expected some of the big travel companies selling a lot of holidays in turkey to be pummeled. in fact it's gained ground and it's virtually flat on the session overall. you have a stock that is halved in value over the last year because there were a lot of terrorist attacks in turkey, so on and so forth and already people were concerned about its business model. and finally, the bond rally continued in europe today. remember last week, on all that risk on attitude. the bond's sovereign debt sold off and the yields moved higher. that took the ten-year german bond out of negative territory but as you can see, we've gone back in. bonds rally and a stock market that is flat to positive. >> thank you, simon. when we come back, long before you could find pikachu lurking through your neighborhood, they were finding success elsewhere. we'll have that when "squawk alley" comes back. a bold group of researchers and computer scientists in silicon valley, had a breakthrough they called... the machine. it changed computing forever. and it's been part of every new technology for the last 250 years. everything? everything! this year, hewlett packard enterprise will preview the machine and accelerate the future. see star trek beyond. everyone talks about what happens when you turn sixty-five. but, really, it's what you do before that counts. see, medicare doesn't cover everything. only about eighty percent of part b medical costs. the rest is on you. consider an aarp medicare supplement insurance plan insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans, it could really save you in out-of-pocket medical costs. so, call now and request this free decision guide. discover how an aarp medicare supplement plan could go long™ for you. do you want to choose your doctors? avoid networks? what about referrals? all plans like these let you visit any doctor or hospital that accepts medicare patients, with no networks and virtually no referrals needed. so, call now, request your free guide, and explore the range of aarp medicare supplement plans. sixty-five may get all the attention, but now is a good time to start thinking about how you want things to be. go long™. good morning. i'm sue herera. a new development in the freddie gray death trial trial. brian rice has been acquitted of involuntary man slaughter, reckless endangerment and misconduct in office. the ruling is in connection with the april 2015 death of black detainee freddie gray who died from a broken neck suffered in a police transport van. rice was the fourth of six officers charged in the case to go to trial. turkish state officials say prosecutors are questioning 27 generals today, including a former air force commander suspected of being the coup ringleader. at least 294 people were killed and more than 1400 wounded in friday's failed coup attempt. tokyo's main airport getting back to normal after a hawaiian airlines jet made an emergency landing there this morning. an airbus a330 blew out eight tires while returning to the airport due to an hydraulic system issue. and space-x celebrating another successful launch and landing of its falcon nine rocket with cargo to the space station. it touched back down to the spacex landing at cape canaveral shortly after takeoff. it's the second time spacex has pulled off that type of ground landing. you are up to date. that's the news update this hour. i think i'm sending it back down to you, john. >> thank you, sue. shares of nintendo soared 70% riding high on the pokemon go phenomenon. the gaming company partnering with niantic labs to release the augmented reality mobile game this month. joining us to break down the pokemon craze, a top investor in niantic series a funding round. great to have you with us. >> thank you. great to be on. >> i want to ask. niantic had ingress before pokemon go. what is the main takeaway to build a business on here? is it that you need some kind of cultural touch point that people can really relate to for a game to go really viral, or are there little pieces of game mechanics that were different in pokemon go that you think this company is going to be able to build on to create more success in the future? >> well, i think both of those statements are true. i think that you can't underestimate the power of a brand like pokemon. it is a multigenerational brand. it's super exciting to be able to go out and see like pikachu on your laptop or whatever out in your wild environment and people have never experienced that phenomenon before. both of those statements are true. >> what keeps this from being a gimmick, a short-lived gaming phenomenon? we've seen that like the wii wand, things like that that go strong for a few months, a couple of years and then die off. what makes this a new way to do inner activity, a new type of platform to build games upon? >> i started playing ingres probably right around the time they launched. i'm still an active ingris player. there's not a -- probably a city in this world that i've travelled to that i can't find fellow ingris players. you'll start seeing that with pokemon because one of the things this game gives you is the ability to go out and socialize with friends, go on walk-s about and some of the game welcomes aren't even in pokemon yet. i imagine niantic will roll those out and this game will have longlasting value. >> cyan, we watched shares offin in continu-- nintendo because i publicly traded. give us a view into niantic and what the success of pokemon has done for that valuation. >> unfortunately, i can't share anything, inside details of that. it's kind of too early to tell. i know that right now they're just trying their hardest to keep the game up and make players happy. >> cyan, are there characters for those in so-called nonpokemon countries that's you think could spark this kind of devotion? >> oh, yeah, absolutely. pokemon is a global phenomenon. i don't know of any place where people haven't really heard about or have seen pokemon, but there are other brand franchises you can imagine that could be applied to a platform like this that would be as big or big are than pokemon. >> is there a need for an augmented reality gaming engine or some piece of intellectual property that niantic has identified that they're going to be able to sell and capitalize on, or is this mainly just about creating content? >> they are a platform. if you look at ingris and what they've done with pokemon, they have years n years and years of data that they accumulated at google. and you look at john hinkney's background. probably one of the best experts when cit comes to mapping data. it would be very difficult for other competitors to compete with him at this point. i'm placing a long bet of niantic, mostly because i feel it's a powerful platform n than they'll be able to repeat it over and over. >> thanks for joining us. >> thank you. when we come back, could today be the final earnings call for yahoo!'s ceo marissa mayer since she took the helm four years ago? our own josh lipton will have those details. the company reporting after the bell. we'll be rouight back. coming up, ross levinsohn speaking out exclusively today on where that company goes from here as final bids are due in hours. barron's says shell is the best oil stock for your money. are they right? we'll debate that. and goldman sachs, ibm and netflix among the big names set to report. we'll take positions ahead of those numbers. ka kayla, we'll see you in about 15. yahoo! is scheduled to report earnings today. those results largely considered a sign to the bigger story for any company trying to sell itself. that is where that sale process stands. josh lipton is in san francisco with that. josh? >> kale awhen it comes to yahoo!'s actual financial performance, wall street is not expecting much from the internet company. >> if you look at our estimates, we're still looking for search to decline on a net search basis. display revenues more stable down about 2% year over year. we're still looking for headwinds on the yahoo! core business. >> in fact, analysts think yahoo! will report eps of 10 cents on revenue of $1.08 billion. that would represent declines of 39% and 13% respectively. of course, the real focus for investors is on what ceo marissa mayer has to tell us about that ongoing auction for this company. ricoh reporting that final bids from verizon, quicken loans and several private equity firms are due today. yahoo! stock up some 30% in the fast few months that a sale will happen sooner rather than later. they do think yahoo! gets sold for some $6 billion to one or more multiple bidders with verizon, he says, the most likely winner. one wrinkle in this sales process, reports that yahoo! may owe mozilla $1 million. that could pressure the price bidders are willing to pay for yahoo!. still peck thinks that yahoo! gets sold and the deal closes, he says, in the second half of this year. back to you. >> that's going to be interesting tonight, josh. thank you. when we come back, the republican national convention kicks off tonight in cleveland. where the party is expected to officially nominate donald trump and newly minted running mate indiana governor mike pence. but not everyone in the party is on board. we'll talk about that. the dow and s&p not far from session highs and record highs. back in a minute. they may want the latest products and services, but they demand the best shopping experiences. they're your customers. and by blending physical with digital, cognizant is helping 8 of the 10 largest u.s. retailers meet their demands with more responsive retail models... ones that transcend channels and locations, anticipate expectations... creating new ways to engage at every imaginable touch-point. it's a new day in retail, and together, we're building the store of the future. digital works for retail. let's talk about how digital works for your business. narrator:kubo: est place come on, this way.e... narrator: ...is in the forest. kubo: wow. narrator: so grab your loved ones monkey: don't even. narrator: and explore a world of possibilities. kubo: it's beautiful. narrator: visit discovertheforest.org to find the closest forest or park to you. republicans set to gather in cleveland in just about an hour to kick off the nom nainating convention for donald trump and mike pence. how fractured is the gop? joining us, club for growth president and former indiana congressman david mcintosh along with our john harwood who has made his way to cleveland. good morning, guys. >> morning. >> let me ask you whether or not you expect trump to make at least kasich's absence part of the story tonight. >> i don't see how that's in donald trump's interest to do that. there was an argument between paul manafort, the chairman of the trump campaign, and kasich strategist john weaver that weaver, that broke out today. paul manafort said kasich was embarrassing his state. shot back, hanging around with dictators, once represented viktor yanukovych, i don't see how that helps donald trump at all. on the other hand, donald trump hasn't shown impulse control. in unveiling of his running mate he made a show talking about how he crushed the rebellion from never trump forces. that is not a prescription for unifying the party. >> david, how much does this dissent within the party matter in a year when so much of the primary voter interest seems to be in tamping down the establishment? i mean, do people really care if these folks show up or not? does it matter down the line when it comes time to organize forces locally? what do you think? >> absolutely. one of the things that trump said last night was he picked my pence in order to unify the party. we were not supporters of trump. we endorsed ted cruz and thought donald trump was a liberal most of his life, but he's running as an outsider, and mike pence is a strong conservative, a 95% on our score card consistent over 20 years, and i think that helped to unify the party, where people who may not be as enthusiastic about trump have someone to look for and say, okay. i know he's conservative. he'll be there at the table, talking to trump, and they're more optimistic about supporting the republican ticket. >> john, we've made our way through some platform committee meetings. what kind of role does policy get in a convention week, where you're obviously talking to broad swaths of america? is tpp even mentioned or more about building a personality around trump? >> i think it's the latter. policy doesn't play that big a role. you do have the platform deliverations, but on policy, i'd be interested to know what david mcintosh thinks having tangled with donald trump, called him a liberal. what does he think about the reports that donald trump is going to narrow his tax plan to reduce the affect on the federal government? dent fiped with cuts in top marginal rights. don't know how that plan is evolving. david, what do you understand? >> we would push to have a robust plan similar to the one he first introduced. even as i said, there are better candidates, we did, our on record, as saying his tax plan would be very pro-growth. same with trade. want to see donald trump move away from anti-free trade to being what he says is now a free trader but wants better trade agreements. we've got to make sure that the party and trump and pence and everybody down ticket stays on that message of pro-grow, free market economics is what the country needs right now. that's the outsider position. washington hasn't embraced those in the last eight years and we're going to keep pushing on the issues. >> david, how likely do you think it is, though, that trump can stay on that message throughout the convention? because especially after the interview with "60 minutes" that he did with his now running mate, "washington post" says it makes the 2008 rollout of sarah palin look orderly and on message. >> you know, i've studied donald trump a lot in the last year. he's a personality candidate. he's going to be out there speaking the way he believes the issues need to be addressed. i think the key will be, what does the party at the congressional level line up for? and by the way, that's what the club's focusing on, the senate and house races. that will determine how much of those pre-market policies we actually get done. >> david? >> yes. >> i wanted to ask you one other question about mike pence. i'm sure you know mike pence very well. i wonder how you think he approach theed decision whether to join donald trump's ticket? some other high-profile republicans said they weren't interested. on the one hand you had mike pence in a tough re-election race. on the other, somebody who may be a candidate for national office in the future, and i've heard some of your colleagues within the party debating whether running for trump volts h him -- vaults him ahead or represents baggage given how controversial donald trump is within the party? >> you know, i do know mike well, and he had advisers or both sides of that question. in the end, knowing mike, and how he made the decision, he actually wasn't looking to the future and what he might run for. it was much more a sense of calling, and my call to serve my country. this way, or can i continue serving indiana and the hoosiers as governor? and he was at peace, whichever way the decision went. so it wasn't a political calculus and i've heard arguments on's both sides, like you described. it might hurt him or might help him. >> which arguments do you believe? >> i think in the end it will help mike become an even larger national leader for conservative policies. and i'm delighted for him. i'm delighted for the ticket that he's been chosen. >> john, how much is a convention usually worth in poll numbers, and do you think that pattern will be repeated this summer? >> less than it used to be, because viewership is down. networks cover them less. nevertheless, a massive communications opportunity for parties. 30 million people watched mitt romney four years ago. about a quarter of the entire electorate. donald trump has a chance over these next four days to deliver a policy message and also to help lift voters' assessment of his ability to serve as commander in chief. that's a threshold he has not yet crossed during republican primaries. people i've spoken to said 75% or 80% of the value of the convention is in that thursday night acceptance speech. we'll see how donald trump uses it. does he stick with a disciplined, well-written speech, read off a teleprompter? does he improvise like he does so often in campaign speeches? we'll figure out what he thinks will be in his best interests and watch the polls to see if it is. >> yep. going to be fascinating and important to watch. congressmen, thank you for your time. john harwood in cleveland, also, john, thanks so much. when we come back, apple ramping up its fight against spotify. offering musicians more money for their music. we'll talk about that in just a moment. tokyo-style ramen noodles. when you cook with incredible ingredients... you make incredible meals. fresh ingredients, step-by-step recipies, delivered to your door for less than nine dollars a meal. get your first two meals free at blueapron.com/cook . apple reportedly ramping up its fight with spotify. the music streaming rival. according to the "times," ap is proposing a 9.1% royalty fee every time the song is played. significantly more than apple pays. spotify getting spicy in the streaming wars, jon. >> indeed. this would in effect raise its competitors' costs while not affecting his costs similar to agency pricing e-book thing but different. >> meanwhile, awfully close to record highs. off to headquarters. wapner and "the half." and welcome to the "halftime report." i'm scott wapner. future of yahoo! front and center. due hours from now, final bids. bids that will decide the future of his one-time silicon valley giant. joining us in a noon "halftime" exclusive interview the man who once ran? yahoo! as an interim ceo. welcome back. nice to see you today. >> high. scoot. nice to be here. >> how's this goingla