Transcripts For CNBC Squawk Alley 20160722 : comparemela.com

Senator tim kaine has emerged as t leading contender. Last night at the Republican Convention, gop nominee donald trump set the tone for the Upcoming Campaign against clinton. Heres what he said. I have visited the laid off factory workers and the communities crushed by our horrible and unfair trade deals. These are the forgotten men and women of our country, and they are forgotten, but theyre not going to be forgotten long. These are people who work hard but no longer have a voice. I am your voice. He makes the sale. Joining us now, veteran strategist, vim weber and former Cruz Campaign spokesman rick tyler. Great to have you both. Good morning. The speech called dangerous and dangerously good. The question then is whether it did the trick . Well, i think it was both an effective speech and a very dark speech, and you can be both things. After a convention the convention, by the way, was really kel bun. A really good convention. Trumps management of his part of it was mixed but his speech ended him up pretty strong. Hes set himself up to take advantage of negative consequences in the world in the next four months. In other words, shootings, terrori terrorism, bombings, expecting well have a lot of that and set himself up to take advantage of it. A dark way of approaching things but might be effect. A question of winning a general election without a message of hope . For most of country thats the case. Its hard for people to say in this environment, but not everything is bad in america right now. You guys report on Economic News all the time that its very positive for this country. Yes, we have pockets of deep, deep misery and its good somebodys talking about them, but america overall is doing better than any country in the industrialized world, and to simply portray this as a very, very dark period in American History is just not accurate. Rick, get practical on this. Did trump do what he needed to do with this speech to really help in the ground game thats going to be so important over the next weeks and months getting people out, to get the vote out in november . Im afraid not. I agree with what vince said. Entered the convention strong. To me, sort of a communications disaster. They lost day after day after day of getting out their own messaging on the campaign, talking about melanias speech and the ted cruz speech. He did finish strong. I agree with vin. Too dark. I think people need and nothing new in a sense. He talked about law and order. I still want to know what that means. The federal government doesnt really have a role in local Law Enforcement. Is he talking about expanding federal Law Enforcement or the what specifically is that role . Or talking about appointing, reining in the courts, appointing certain judges . Id like to hear more about that and most i i wanted to hear what a Donald Trump Administration would look like that it would oppop opper offer hope and get better. I disagree with him on the trade deals. Yes, we do have some bad trade deals but in a Global Economy and absolutely need to have trade, because thats whats leads to Lower Consumer prices. What is the impact of basically promising to reverse globalization through renegotiates trade deals in a way that i dont know weve ever seen before . We havent seen it before. Hes talking about reversing American Leadership on trade since world war ii. At at least, at the top level, at least, trying to lower trade barriers as much as we can, a good policy. Republicans really led on that more than the democrats. And when donald trump attacks trade agreements, hes really attacking republican economic philosophy over the last 40 or 50 years. And the bad news is, if the rest of the world hears that, history tells us their reaction is going to be to become protectionist in reaction to our protectionism. Thats a very dark future economically. My friends that are advising him, say dont worry about it. Hes setting up a negotiating position, doesnt really mean it. I hope thats the case. I dont like what i hear. Didnt hear a trump moving towards the center this week at wall. We did see a lot of republicans distancing themselves. Governor kasich not appearing, and paul ryan not talking about the presidency that much. None more than senator cruz, saying cruz has a lot of intellect, just doesnt know how to use it. What you do you say . Donald trump is the leader of the Republican Party and its incumbent upon him to be the uniter. I see hes done very little to unite the party. Being at war with the republican governor of ohio, which has been a key state for general elect n election, doesnt strike me as a smart strategy. He could have mended the rift he has with senator cruz and others, and, again, last night in the convention, we heard a lot of the same things, and so his fans like that, but how does he expand . How does he expand out, become an attracting force so People Choose him over Hillary Clinton . And moreover, he took the opportunity to talk about corrupt hillary and her foundation and what troubles me there is you know, donald trump has a history of being pay master for the corrupt. He has funded all of these people, including Hillary Clinton. So its a little like mitt romney trying to be critical of obama care when he invented romney care. Here you have donald trump who complains about the corruption of the clinton foundation, when, in fact, he was one of the contributors to Hillary Clinton. Well, i believe we do have the sound bite of trump speaking just moments ago and i want to play that for you both right now. Take a listen. Two other things. Two other things. I just to finish with ted. I like ted. Hes fine. Again, i dont want his endorsement. If he gives it, i will not accept it, just so you understand. I will not accept it. Wont matter. He will not accept an endorsement. Also saying he might start a super pac to try and unseat cruz in 2018. Is this the beginning of trump trying to basically fracture the entire Republican Party and take it over . I just think its not very smart. It indicates a tendency on his part and a part of his people around him, mentioned his treatment of john cakasich. I can understand hes not endorsed. Treat him with kindness, respect, try to look bigger. Instead, they go after their enemies. Opening day of the convention, a fight over rules. Unnecessary. They would have won the fight. Won it big. Instead had to crush the opposition. This tendency to want to destroy your opponents within the party, whether john kasich or senator cruz or the delegations that wanted to vote on the rules is not the way to unite the party and not the way to move forward. Rick, a quick final word. Is this trump coopting the Republican Party . Oh, i think, you know, dwoon know whats ahead with donald trump. Hes never really been a republican. And head of the, the nominee of the party is the a remarkable achievement but taking the republican in a direction, in an identity crisis. Hes the leader. Needs to unite it. Im not sure he can do it. Leave it there for now. Thanks to both of you. Thank you. Thanks. Coming up, a massive shakeup in media. Roger ailes out at fox news. What you need to know. Plus, peter thiel speaking out in primetime for gop nominee donald trump. Care rey swisher weighs in. And paypal sharing falling, even after the Company Announce as new partnership with visa. What it means for both companies when squawk alley comes right back. Announcer post nine is sponsored by you never want to see 7. 95. S [ beep ] but youll be ad to see it here. Fility where smarter investors will always be. If only the signs were as obvious wn you trade. Filitys active trader p can help you find and can help protect your potential profits. Fidelity where smarter investors will always be. Great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcast business. Built for business. Its the end of an era. Roger ailes officially out at fox news. Live in l. A. We have more. Jon, ailes pushed out in the wake of a Sexual Harassment lawsuit and Rupert Murdoch taking the role of chairman and acting ceo of fox business network. Executive chairman of 21st century fox after passing the reins to his sons james and lachlan chairman last summer. Sources tell me only for at long as it takes the company to find a permanent replacement. Two candidates murdoch name checked in the press release helping him maintain continuity are longtime fox execs bill shine and jay wallace. Im told fox is likely to hire internally, but to external names, jesse angelo, publisher of the new york post, of course, owned by 21st century foxs Sister Company news corp. And murdoch is stressing editorial continuity ensuring fox news remain as distinctive and powerful voice. Jon . All right. Thank you, julia. Meanwhile, verizon is close to perhaps a deal with yahoo according to reports. We will check in on that later. And coming up, a massive shakeup in media. Continuing to talk about fox news and what you need to know, and tech billionaire peter thiel, the Republican Convention last night. Kara swishers take on that and more, after a break. Is the stuff that matters . E stakes are so high, your finances, ur future. How do solve this . You dont. You rtner with firm that advises governnts and the fortune 50 you dont. And, c deliver insight pernto p, advises governnts on what matters to you. Morgan stanley. And, c deliver insight pernto p, advises governnts for e 5 million americans and millions more vo feel its effectss, lets walk together to make an even bigger iact and end ales r good. Find your walk nr you at alz. Orgalk. Lets get more on the future of fox news. Recode executive editor kara swisher joins us from los angeles. Good morning. How you doing . Good. So who knows what this means for the future of a very important cable network. Whats your take on the impact that this is likely to have over the political season, and for the network itself . Well, clearly, i mean, he was a massive figure in a lot of ways, and has been running this thing by fiat for what . 20 years . Since it was founded. Interesting to see who takes over. A lot of names brought up. Obviously Rupert Murdoch has a great interest and is very involved. Interesting to me, involvement of his two sons to ply aayed a role in removing ailes from the scene. No choice. People talking so great, they didnt have a choice. The question, can they keep up the success that ailes has seen . Their demographic is aging. Theyve certainly have much more more struggles than in the past. The question is, can they keep surging forward with new things, depending which the administration is and stuff like that. Kara, that seems to be the exact variable people are trying to size up. Exactly how much change will the murdoch sons be able to push through in a company that still has legacy executives . Well, yeah. Exactly. This is a changing era. Be honest. Rupert murdoch is active in returning the company but his sons moved into a much more prominent position. They tangled with ailes previously and didnt have enough to power. But now enough ammo considering the allegations, and you wont see Rupert Murdoch running this company 20 some years more unless he has a secret we dont have. Its clear the younger murdochs are taking control of the situation. Kara, is there a power shift also to some of the onair personality fox viewers have come to know so well . Is there contract renegotiation that needs to take place because of the outclause some reportedly had if ailes were to leave the network . I dont want to insult television people, but they like to be on television and the minute they come off dont have their power. Where are they going to go . First of all . I know they like to say they have power, but they dont. Their power comes from their television appearances. So the question is, if they did that, he cant start another network. Theres not going to be another network. So i think bill oreilly was not going to stay on im not following that closely. They did want to protect their relation. With megyn kelly, one of the stars, involved in this and allegedly said ailes bothered her, too. A lot of noise, but no ones going to walk out. Thats where the camera is and where the tv people stay, seems to me. They seem to like the cam. Yes. Thats a rumor. Lets move on. Tech billionaire peter thiel pledging support for donald trump in cleveland last night not shying away from his personal life. Lets take a listen. Of course, every american has a unique identity. I am proud to be gay. I am proud to be a republican. But most of all, i am proud to be an american and kara, just before that, he had referenced the transgender bathroom controversy and said, who cares . On the same day that the nba said, well, we do. What do you make of the impact of his appearance there, just generally culturally, but also in Silicon Valley, where his name is known so well . Everyone in Silicon Valley is for transgender people being able to go to the bathroom anywhere they want. I dont think hes saying anything thats not in line with things the Silicon Valley people already supported and glad hes finally proud to be gay. Thats great. He hadnt previously, apparently. I dont know about the impact whatever so ever. A short speech, standard and protrump, and, you know, he is someone who marches to a different drum, and Silicon Valley more conservative than most people. I was expecting a little more of an interesting speech from him. It was more of a trump rally kind of speech. But i dont think it will have any impact. I dont think trumps going to get voter from Silicon Valley because peter thiel says we should be where we want. He didnt invoke Silicon Valley that much, but said we dont accept incompetence in silicon, we must not accept it in our government. Plenty of competence in Silicon Valley. I dont know what hes talking about. Its easy to bash the government. I dont know. Hes definitely an antigovernment person. Has always been like that. Thats his philosophy and hes an incredibly smart man and the way hes been for aening although, long time. Its typical to say that this is trumps whole thing . The government success. Theyre not serving you. To be an outsider is the thing this year and trump is doing that and obviously what thiel talked about for years and thats what theyll say. Trust me. Theres plenty of incompetence in Silicon Valley to look at. Speaking of yahoo yeah. Verizon is nearing a deal reportedly to acquire yahoo . Youve done work on this. The deal could be announced in the coming days. Discussions are ongoing. Kara, youre saying a price tag of 5 billion looks to be on this deal. What are the puts and takes when it comes to things like that . Billion dollars, potentially, owed to mozilla, other overhanging issues that could complicate this . Yeah. A lot of them. Stock issues. Around employ compensation. Theres a lot to unwind. A lot the stuff happens with alley b alibaba. The board is going with a safe choice. I talked to a number of different people and its a very safe choice. Much easier integration. Not to say its easy. Makes more sense, less risky. Not done yet and i think you might not be surprised to see another bid lobbed in or Something Like that, because dan gilbert has been very enthusiastic about grabbing this property. So its not over until its over, but i think probably, you know, if as one of the bidders said if verizon comes up in a price, its theirs to lose. Thats where we are. Theyre in exclusive talks and theyre in the game. So it makes the most sense. This makes the most sense compared to all the others. Although the other bids were interesting, too. Kara, throughout the process weve tried to parse what any certain bid would mean for the intellectual property, for real estate. To name a couple piecess any idea what a verizon deal would mean . The patents, a little tarnished on those patents. I dont their theyre worth quite as much. I dont think thats the big deal and verizons money has money. They have plenty money to paper these over. Not sure if the shareholders will love some of this stuff. Obviously, the stock hit on the rumors of the deal, and its going to be costly. This will be a costly thing for them, but they feel they could create the third alternative to google and facebook in the ad tech area, its a win. They have to have strength in the mobile space and this gives them assets that are attractive. Some media assets, i dont think thats driving it. Its advertising tech almost primarily. What happens to search, do you think . Under verizon, and the microsoft deal . Whose hand gets strengthaled . Good for google or bad for google . Aol struck deals with microsoft around search. I think google is in there with yahoo . Microsoft has a search deal, obviously. All kinds of complicated i dont think aol will suddenly invest in search the way marisa may heer has been wanting to. I dont think thats verizons interests to compete in search against google or microsoft. Probably microsoft, if the deal is struck correctly, and, you know, i dont know if theyll abandon the google deal or if they can. Probably better for microsoft in this case. Well, well secertainly be watching that. Important businesses at stake. Kara swisher, thanks for joining us. Thanks a lot. Meanwhile, paypal shares having their worst day. Down nearly 8 , despite an earnings meet, a revenue guidance raise, and a new Republican Convention<\/a>, gop nominee donald trump set the tone for the Upcoming Campaign<\/a> against clinton. Heres what he said. I have visited the laid off factory workers and the communities crushed by our horrible and unfair trade deals. These are the forgotten men and women of our country, and they are forgotten, but theyre not going to be forgotten long. These are people who work hard but no longer have a voice. I am your voice. He makes the sale. Joining us now, veteran strategist, vim weber and former Cruz Campaign<\/a> spokesman rick tyler. Great to have you both. Good morning. The speech called dangerous and dangerously good. The question then is whether it did the trick . Well, i think it was both an effective speech and a very dark speech, and you can be both things. After a convention the convention, by the way, was really kel bun. A really good convention. Trumps management of his part of it was mixed but his speech ended him up pretty strong. Hes set himself up to take advantage of negative consequences in the world in the next four months. In other words, shootings, terrori terrorism, bombings, expecting well have a lot of that and set himself up to take advantage of it. A dark way of approaching things but might be effect. A question of winning a general election without a message of hope . For most of country thats the case. Its hard for people to say in this environment, but not everything is bad in america right now. You guys report on Economic News<\/a> all the time that its very positive for this country. Yes, we have pockets of deep, deep misery and its good somebodys talking about them, but america overall is doing better than any country in the industrialized world, and to simply portray this as a very, very dark period in American History<\/a> is just not accurate. Rick, get practical on this. Did trump do what he needed to do with this speech to really help in the ground game thats going to be so important over the next weeks and months getting people out, to get the vote out in november . Im afraid not. I agree with what vince said. Entered the convention strong. To me, sort of a communications disaster. They lost day after day after day of getting out their own messaging on the campaign, talking about melanias speech and the ted cruz speech. He did finish strong. I agree with vin. Too dark. I think people need and nothing new in a sense. He talked about law and order. I still want to know what that means. The federal government doesnt really have a role in local Law Enforcement<\/a>. Is he talking about expanding federal Law Enforcement<\/a> or the what specifically is that role . Or talking about appointing, reining in the courts, appointing certain judges . Id like to hear more about that and most i i wanted to hear what a Donald Trump Administration<\/a> would look like that it would oppop opper offer hope and get better. I disagree with him on the trade deals. Yes, we do have some bad trade deals but in a Global Economy<\/a> and absolutely need to have trade, because thats whats leads to Lower Consumer<\/a> prices. What is the impact of basically promising to reverse globalization through renegotiates trade deals in a way that i dont know weve ever seen before . We havent seen it before. Hes talking about reversing American Leadership<\/a> on trade since world war ii. At at least, at the top level, at least, trying to lower trade barriers as much as we can, a good policy. Republicans really led on that more than the democrats. And when donald trump attacks trade agreements, hes really attacking republican economic philosophy over the last 40 or 50 years. And the bad news is, if the rest of the world hears that, history tells us their reaction is going to be to become protectionist in reaction to our protectionism. Thats a very dark future economically. My friends that are advising him, say dont worry about it. Hes setting up a negotiating position, doesnt really mean it. I hope thats the case. I dont like what i hear. Didnt hear a trump moving towards the center this week at wall. We did see a lot of republicans distancing themselves. Governor kasich not appearing, and paul ryan not talking about the presidency that much. None more than senator cruz, saying cruz has a lot of intellect, just doesnt know how to use it. What you do you say . Donald trump is the leader of the Republican Party<\/a> and its incumbent upon him to be the uniter. I see hes done very little to unite the party. Being at war with the republican governor of ohio, which has been a key state for general elect n election, doesnt strike me as a smart strategy. He could have mended the rift he has with senator cruz and others, and, again, last night in the convention, we heard a lot of the same things, and so his fans like that, but how does he expand . How does he expand out, become an attracting force so People Choose<\/a> him over Hillary Clinton<\/a> . And moreover, he took the opportunity to talk about corrupt hillary and her foundation and what troubles me there is you know, donald trump has a history of being pay master for the corrupt. He has funded all of these people, including Hillary Clinton<\/a>. So its a little like mitt romney trying to be critical of obama care when he invented romney care. Here you have donald trump who complains about the corruption of the clinton foundation, when, in fact, he was one of the contributors to Hillary Clinton<\/a>. Well, i believe we do have the sound bite of trump speaking just moments ago and i want to play that for you both right now. Take a listen. Two other things. Two other things. I just to finish with ted. I like ted. Hes fine. Again, i dont want his endorsement. If he gives it, i will not accept it, just so you understand. I will not accept it. Wont matter. He will not accept an endorsement. Also saying he might start a super pac to try and unseat cruz in 2018. Is this the beginning of trump trying to basically fracture the entire Republican Party<\/a> and take it over . I just think its not very smart. It indicates a tendency on his part and a part of his people around him, mentioned his treatment of john cakasich. I can understand hes not endorsed. Treat him with kindness, respect, try to look bigger. Instead, they go after their enemies. Opening day of the convention, a fight over rules. Unnecessary. They would have won the fight. Won it big. Instead had to crush the opposition. This tendency to want to destroy your opponents within the party, whether john kasich or senator cruz or the delegations that wanted to vote on the rules is not the way to unite the party and not the way to move forward. Rick, a quick final word. Is this trump coopting the Republican Party<\/a> . Oh, i think, you know, dwoon know whats ahead with donald trump. Hes never really been a republican. And head of the, the nominee of the party is the a remarkable achievement but taking the republican in a direction, in an identity crisis. Hes the leader. Needs to unite it. Im not sure he can do it. Leave it there for now. Thanks to both of you. Thank you. Thanks. Coming up, a massive shakeup in media. Roger ailes out at fox news. What you need to know. Plus, peter thiel speaking out in primetime for gop nominee donald trump. Care rey swisher weighs in. And paypal sharing falling, even after the Company Announce<\/a> as new partnership with visa. What it means for both companies when squawk alley comes right back. Announcer post nine is sponsored by you never want to see 7. 95. S [ beep ] but youll be ad to see it here. Fility where smarter investors will always be. If only the signs were as obvious wn you trade. Filitys active trader p can help you find and can help protect your potential profits. Fidelity where smarter investors will always be. Great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet<\/a> installed on your schedule. Comcast business. Built for business. Its the end of an era. Roger ailes officially out at fox news. Live in l. A. We have more. Jon, ailes pushed out in the wake of a Sexual Harassment<\/a> lawsuit and Rupert Murdoch<\/a> taking the role of chairman and acting ceo of fox business network. Executive chairman of 21st century fox after passing the reins to his sons james and lachlan chairman last summer. Sources tell me only for at long as it takes the company to find a permanent replacement. Two candidates murdoch name checked in the press release helping him maintain continuity are longtime fox execs bill shine and jay wallace. Im told fox is likely to hire internally, but to external names, jesse angelo, publisher of the new york post, of course, owned by 21st century foxs Sister Company<\/a> news corp. And murdoch is stressing editorial continuity ensuring fox news remain as distinctive and powerful voice. Jon . All right. Thank you, julia. Meanwhile, verizon is close to perhaps a deal with yahoo according to reports. We will check in on that later. And coming up, a massive shakeup in media. Continuing to talk about fox news and what you need to know, and tech billionaire peter thiel, the Republican Convention<\/a> last night. Kara swishers take on that and more, after a break. Is the stuff that matters . E stakes are so high, your finances, ur future. How do solve this . You dont. You rtner with firm that advises governnts and the fortune 50 you dont. And, c deliver insight pernto p, advises governnts on what matters to you. Morgan stanley. And, c deliver insight pernto p, advises governnts for e 5 million americans and millions more vo feel its effectss, lets walk together to make an even bigger iact and end ales r good. Find your walk nr you at alz. Orgalk. Lets get more on the future of fox news. Recode executive editor kara swisher joins us from los angeles. Good morning. How you doing . Good. So who knows what this means for the future of a very important cable network. Whats your take on the impact that this is likely to have over the political season, and for the network itself . Well, clearly, i mean, he was a massive figure in a lot of ways, and has been running this thing by fiat for what . 20 years . Since it was founded. Interesting to see who takes over. A lot of names brought up. Obviously Rupert Murdoch<\/a> has a great interest and is very involved. Interesting to me, involvement of his two sons to ply aayed a role in removing ailes from the scene. No choice. People talking so great, they didnt have a choice. The question, can they keep up the success that ailes has seen . Their demographic is aging. Theyve certainly have much more more struggles than in the past. The question is, can they keep surging forward with new things, depending which the administration is and stuff like that. Kara, that seems to be the exact variable people are trying to size up. Exactly how much change will the murdoch sons be able to push through in a company that still has legacy executives . Well, yeah. Exactly. This is a changing era. Be honest. Rupert murdoch is active in returning the company but his sons moved into a much more prominent position. They tangled with ailes previously and didnt have enough to power. But now enough ammo considering the allegations, and you wont see Rupert Murdoch<\/a> running this company 20 some years more unless he has a secret we dont have. Its clear the younger murdochs are taking control of the situation. Kara, is there a power shift also to some of the onair personality fox viewers have come to know so well . Is there contract renegotiation that needs to take place because of the outclause some reportedly had if ailes were to leave the network . I dont want to insult television people, but they like to be on television and the minute they come off dont have their power. Where are they going to go . First of all . I know they like to say they have power, but they dont. Their power comes from their television appearances. So the question is, if they did that, he cant start another network. Theres not going to be another network. So i think bill oreilly was not going to stay on im not following that closely. They did want to protect their relation. With megyn kelly, one of the stars, involved in this and allegedly said ailes bothered her, too. A lot of noise, but no ones going to walk out. Thats where the camera is and where the tv people stay, seems to me. They seem to like the cam. Yes. Thats a rumor. Lets move on. Tech billionaire peter thiel pledging support for donald trump in cleveland last night not shying away from his personal life. Lets take a listen. Of course, every american has a unique identity. I am proud to be gay. I am proud to be a republican. But most of all, i am proud to be an american and kara, just before that, he had referenced the transgender bathroom controversy and said, who cares . On the same day that the nba said, well, we do. What do you make of the impact of his appearance there, just generally culturally, but also in Silicon Valley<\/a>, where his name is known so well . Everyone in Silicon Valley<\/a> is for transgender people being able to go to the bathroom anywhere they want. I dont think hes saying anything thats not in line with things the Silicon Valley<\/a> people already supported and glad hes finally proud to be gay. Thats great. He hadnt previously, apparently. I dont know about the impact whatever so ever. A short speech, standard and protrump, and, you know, he is someone who marches to a different drum, and Silicon Valley<\/a> more conservative than most people. I was expecting a little more of an interesting speech from him. It was more of a trump rally kind of speech. But i dont think it will have any impact. I dont think trumps going to get voter from Silicon Valley<\/a> because peter thiel says we should be where we want. He didnt invoke Silicon Valley<\/a> that much, but said we dont accept incompetence in silicon, we must not accept it in our government. Plenty of competence in Silicon Valley<\/a>. I dont know what hes talking about. Its easy to bash the government. I dont know. Hes definitely an antigovernment person. Has always been like that. Thats his philosophy and hes an incredibly smart man and the way hes been for aening although, long time. Its typical to say that this is trumps whole thing . The government success. Theyre not serving you. To be an outsider is the thing this year and trump is doing that and obviously what thiel talked about for years and thats what theyll say. Trust me. Theres plenty of incompetence in Silicon Valley<\/a> to look at. Speaking of yahoo yeah. Verizon is nearing a deal reportedly to acquire yahoo . Youve done work on this. The deal could be announced in the coming days. Discussions are ongoing. Kara, youre saying a price tag of 5 billion looks to be on this deal. What are the puts and takes when it comes to things like that . Billion dollars, potentially, owed to mozilla, other overhanging issues that could complicate this . Yeah. A lot of them. Stock issues. Around employ compensation. Theres a lot to unwind. A lot the stuff happens with alley b alibaba. The board is going with a safe choice. I talked to a number of different people and its a very safe choice. Much easier integration. Not to say its easy. Makes more sense, less risky. Not done yet and i think you might not be surprised to see another bid lobbed in or Something Like<\/a> that, because dan gilbert has been very enthusiastic about grabbing this property. So its not over until its over, but i think probably, you know, if as one of the bidders said if verizon comes up in a price, its theirs to lose. Thats where we are. Theyre in exclusive talks and theyre in the game. So it makes the most sense. This makes the most sense compared to all the others. Although the other bids were interesting, too. Kara, throughout the process weve tried to parse what any certain bid would mean for the intellectual property, for real estate. To name a couple piecess any idea what a verizon deal would mean . The patents, a little tarnished on those patents. I dont their theyre worth quite as much. I dont think thats the big deal and verizons money has money. They have plenty money to paper these over. Not sure if the shareholders will love some of this stuff. Obviously, the stock hit on the rumors of the deal, and its going to be costly. This will be a costly thing for them, but they feel they could create the third alternative to google and facebook in the ad tech area, its a win. They have to have strength in the mobile space and this gives them assets that are attractive. Some media assets, i dont think thats driving it. Its advertising tech almost primarily. What happens to search, do you think . Under verizon, and the microsoft deal . Whose hand gets strengthaled . Good for google or bad for google . Aol struck deals with microsoft around search. I think google is in there with yahoo . Microsoft has a search deal, obviously. All kinds of complicated i dont think aol will suddenly invest in search the way marisa may heer has been wanting to. I dont think thats verizons interests to compete in search against google or microsoft. Probably microsoft, if the deal is struck correctly, and, you know, i dont know if theyll abandon the google deal or if they can. Probably better for microsoft in this case. Well, well secertainly be watching that. Important businesses at stake. Kara swisher, thanks for joining us. Thanks a lot. Meanwhile, paypal shares having their worst day. Down nearly 8 , despite an earnings meet, a revenue guidance raise, and a new Strategic Partnership<\/a> with visa, announced yesterday. Visa debit customers can move money instantly on paypal and paypal will stop steering visa customers to use their Bank Accounts<\/a> to pay online instead of the fee generating visa accounts. The partnership was a long time coming, after visa the ceo famously says, paypal is not a friend. Threatening to go for the jug goo fluhrer their competitive environment. How the new relationship was described when asked whether the two buried the hatchet for good. Its a longterm agreement. We feel like weve addressed everything that we wanted to address. Paypal, ourselves, and the issuers would look at it and say, its something that makes sense for all of us to work together, and thats based upon the fact were providing a better experience and the opportunities are greater than ever for consumers and merchants. And head of Tech Research<\/a> at web bush security raised from 47 to 50 buck as share on the back of that announcement and joins us now. If its a deal so good for everybody, why are paypal shares down seven and change . Because the company didnt quantify the shortterm dilution. As we know, uncertainly is worse than a bad outcome in the stock market. Thats happened today. Opening up the door for people to assume the worst. I dont think so. Ive done the work. This is a phenomenal deal for paypal. The most transformative thing to happen to paypal since it was realized it was a good idea to be on ebay. Allow them to address the expandable market by a factor of eight. Eight times bigger Addressable Market<\/a> and quantify dilution of a about ten cents a share. Just said that yesterday, stock would be up. Left it openended leaving the door open for people to come in and assume the worst. Historically, the company has been pretty good at explaining to investors why it makes sense for their margin to go down, because theyre going after higher volume business, bigger merchants that pay a lower take rate. Why couldnt they get that message across yesterday when talking about the visa deal . Because this is truly transformative. It really changes how their business works. Theyre going to give consumers choice, which means on the funding mix, it may not be as good, but consumers will be a lot happier. Ever used your paypal account and forced into a checking account, to pay instead of the card wanted to, you know thats an unpleasant experience. Theyre eliminating that and creating a much better consumer experience, but it changes their economics substantially. It also opens up an opportunity for them to allow people to use paypal offline at the point of sale, in a way that apple pay or android pay have been working, and that is very different for their business. Completely different economic. They just werent able to quantify until this point in time. They would have been better giving a number. But chose to wait until next quarter to quantify. Is this a show of weakness in some way from paypal at the same ti time . Theyve been talking point of sale things for years and never seemed to get that off the ground. If youre already using paypal and your Bank Accounts<\/a> already connected, i dont see a particular reason to switch to visa . Should be an easier onboarding, perhaps, for new users. Correct . Right. E wouldnt switch. 23 kwur already using your checking account, happy with it, you wouldnt switch. Why not all transactions will go to visa. Paypal was by no means forced into this. They chose to do this and are excited because it gives them a quantum leap in their ability to address a much, much bigger market and make their consumers happier giving them a better experience doing that. How long until we see similar deals between paypal and mastercard . And American Express<\/a> . And some of the other Credit Card Companies<\/a> . I would expect that to happen shortly. Even though they gave visa issuers a little exclusivity in terms of marketability. 12 months. Absolutely. But these are terms in e can give mastercard and American Express<\/a>, give the same terms, which would also like this a lot. Also dont like it when paypal steered people towards checking account. Also going to like this, and also going to do great things for paypal, lie cancel stage wallet fee mastercard applied to paypal as a punitive damage a couple years ago. We appreciate you shedding light on this partnership today. From webbush. A lot of questions about the partnership and put them to paypal the ceo onset on squawk alley next tuesday. Meanwhile, europe closed a few moments ago. Simon hobbs is here with what we should watch. A relatively flat close. Probably the most important thing today is really concrete evidence coming through that maybe the United Kingdom<\/a> is going into recession in the wake of the brexit vote june 23. We had today the publication of the pmi data across europe. Thats services and manufacturing. Actually for europe overall, not too bad. Yes, slipped to an 18month low but not as bad as many thought. In the uk, dramatic decline in the pmi figure, pug together by market. And the figure below 50 for contraction indicates a 0. 4 contraction in gdp. We have to see. Raising the prospect the bank of england will cut rates and maybe come out with a big package not next week but the week after, august 4th. Sterling hit quite where the pound illustrated since brexit. Sterling further hit today down a cent and a half. A big move on sterling, partly because of bank of england assumptions. Property sector today, home track coming through with a fairly downbeat assessment where you are with london property. Important for our viewers. The view seems to be in the wake of the brexit vote new property listings in london are increasing at 15 above the rate that you had last year, whilst the actual sales decline by some 8 . Mainly london renouncers or Estate Agents<\/a> hit today. You see it showing up in some of the building operators as well. Top gainer today, vodafone, billioning theyve invested in the business, around europe, finally benefiting, organic saleses growing over 2 . Interesting, vodafone trades up almost 5 , during the course of the session, its lifted other telecom operators, whether thats the belief in gross perhaps beyond the obvious dividend play we get in a market like this. Top loser today, one is banco salveadel in spain. Might not make a full year because of Interest Rates<\/a> and where they are with provisions. The banks moving today come front and center next week. Next friday, publication of the 51 stret tests for the biggest banks in europe, and ahead of that, of course, the italians rush to get some sort of deal to stabilize their own banks for fear of what those stress tests might say. The good news is, after draghi yesterday, comments from Angela Merkel<\/a> she might show or encourage flexibility in the interpretation of whether small investors get penalized under the rules on any banking bailout. Back to you. Busy week. It is. Thank you. And up next, an early netflix investor will weigh in on peter thiels speech and how the Tech Community<\/a> is feeling now about donald trump. Also going to talk shares of netflix, down 13 in the past week. More squawk alley when we come right back. Hello everyone. Im sue herera. Here is your cnbc news update at this hour. Russian president Vladimir Putin<\/a> calling for a new independent Antidoping Commission<\/a> to be created to shape russias future strategy. They place possible exclusion from the rio games. A scandal over fake vaccines angered parents in the Indian Health<\/a> system. Vials filled with saline discovered at 37 hospitals and clinics in nine city. 23 people people arrested. Firefighters outside of seattle battling a threealarm fire that starting in a building undergoing renovations. It spread to two other businesses. The cause of the blaze is under investigation. And thc, the main ingredient in marijuana found in the water system of hugo, colorado. The discovery made after a simple and routine drug test done in the towns water system. Officials arent sure of the source, since marijuana is illegal in the town. Theres more to that story. Thats the news update at this hour. Back downtown to squawk alley. Jon, over to you. Thank you, sue. I am your voice. Part of Donald Trumps<\/a> message to the working class in cleveland last night. Eamon javers is there with more. Hey, eamon. Jon, look, rooms of laws in politics. A pacing to a president ial Election Year<\/a> and traditionally what a republican or Democratic Nomination Convention<\/a> is all about is uniting the party and making a turn towards the general election and campaigning to a much broader audience than you did during the primaries. Dnt onald trump is not a guy wh played by those rules throughout the year, and this morning he continues to it break the continue playbook of politics by going after ted cruz once again in a speech here in cleveland this morning. Instead of consolidating gains from his big speech last night, the warm Family Moments<\/a> of last night, donald trump is on a stage here in cleveland this morning talking about ted cruz, talking about cruzs father again and bringing up some acrimony between the two men that spilled over into the Convention Week<\/a> this week and on to the floor. Heres donald trump, a few minutes ago continuing to talk about ted cruz. Two other things. Two other things. I just to finish with ted, because i like ted, hes fine. Again, i dont want his endorsement. If he gives it, i will not accept it, just so you understand. If he gives it, i will not accept it. Wont matter. So a divisive note there from donald trump here on the morning after his sort of unity moment for the Republican Party<\/a>. Here ins cleveland last night, look, donald trump is a guy who hasnt followed all the rules that the traditional Political Consultants<\/a> tell you to follow. Its gotten him this far. He seems to be set continuing in that mode. Its worked so far. See if it continues to work. Next week, democrats in philadelphia at the Democratic National<\/a> convention, and, of course, were all, jon, on high alert the next several hours. Expectations, rumors, that maybe we might see a Vice President<\/a> ial pick from Hillary Clinton<\/a>, but as long as donald trump keeps making this news, you can see the clinton team holding back on making their own news to let donald trump dominate the headlines in this way over the next several hours. Tactical maneuvering by both sides. Both sides staking out what they want to be. Jon . A point of clarity. Didnt donald trump say he saw ted cruzs speech ahead of time . Knew he wasnt going to endorse . Clarity why that whole scene played out the way it did, trump now coming back and hitting cruz for what he did onstage when invited . Its a really good question. One of the things that people asked, political professionals have said, if you dont have a commitment for an endorsement from a former rival, why do you let him up onstage in primetime to give a Big Convention<\/a> speech . Donald trump did that. A sense they might have hoped he would endorse. He did not. Clearly this morning were seeing that donald trump takes that very, very personally, jon. All right. Thank you, eamon. Also taking the stage last night, veteran venture capitalist peter thiel. Take a listen. Where i work in Silicon Valley<\/a> its hard to see where america has gone wrong. My industry has made a lot of progress in computers, and in software, and, of course, its made a lot of money. But Silicon Valley<\/a> is a small place. Drive out to sacramento, or even across the bridge to oakland, and you wont see the same prosperity. Joining us now to share his reaction from Silicon Valley<\/a>, Foundation Capital<\/a> partner, general partner, paul, good to have you. Good morning. Good morning, jon. How are you . So doing well, thanks. Was there any surprising in peter thiels speech last night . Anything you think sheds different light on Silicon Valley<\/a> itself, or is going to impact the way people look at donald trump . Well i think when youre thinking about peter thiel and this approach to the speech last night you have to look at a couple things. One, how are peter thiel and donald trump alike, how are they differ and the most important thing, how are their views different from the views you see in the Silicon Valley<\/a>, and i argue california and probably the west coast in general. I want to open, though, with something my colleague at foundation, came up with, brilliant. Watching the Convention Last<\/a> night he said it was like watching the tv show the incredible hulk in the 1970s. Peter thiel, big bixby character, soft spoken, analytical, a scientist and turned the stage over to the incredible hulk who pounded the table and was angry, angry, angry, strange colored hair and skin. That was a good opener to put a little levity into the filter of understanding the whole strange night of the Republican Convention<\/a> last night. So talk about money from here on out. Where do you think the dollars that conservatives in Silicon Valley<\/a>, and there are plenty. Meg whitman, mark andreeson, go down the line. Where does that money go in the general . How does that impact the election . Well, i think if you look at the, the program last night, again, look at peter and donald, and how things played out, there are some things theyre going to talk about that are going to be attractive to republicans in the Silicon Valley<\/a>. Republicans in california, republican s as a whole. Arguing for lower taxes, a greater innovation in society. More freedom for business to appropriate. Things like that. I think to that extent, trump will end up getting in contributions and so forth. I think, though, however, theres a big difference between, say, trump and some of the other people that have come through before, because of his virulent ethnonationalism and the kaunlts around immigration, race, women and so forth. Very antithetical to values here in california and values in the Silicon Valley<\/a> as a whole. I think thats the place where theres a great divergence. Peter thiel is highly respected here, incredibly successful. Donald trump is not highly respected here across the board, and is not thought of as a particularly successful businessman. Peter thiel may be worth 3 billion, 5 billion does he owe to somebody else . They dont think about him that way here. Id be surprised if donald trump was wildly successful from a fundraising perspective and tell you bluntly, theres a zero chance donald trump has a chance of winning california and probably the whole west coast for the general election. Its still probably, it would have been hard for a republican to win california given the way is traditionally votes. But, paul, keep your friends close, enemies closer, they say. Im wondering if the Tech Industry<\/a> being so vocally ghent d against donald trump writing open letter, will do harm to washington and at a time when fruitful policy needs written and anyones guess whos going to win the white house come november. I think you bring up a good point. Theres always a chance trump could win the election. At that point i dont think hes perceived as a great friend of the Silicon Valley<\/a> or Tech Community<\/a> as a whole. I dont think he has a tremendous amount of love for the Tech Community<\/a>. You know, hes got very strong antiimmigrant points of view. Both in terms of highly skilled immigrants coming in, also lower skilled immigrants coming in, both of which are important for the Silicon Valley<\/a> and Tech Community<\/a>. You bring up a good point. If it goes the other way we may be heading down a path where well have a more add verify cerebral relationship with the white house than we would have otherwise. Finally, paul, i want to ask about netflix. Its been a tough trade, post earnings, disappointment on net subscriber broegrowth. What is your take on what this period represents for netflix . A time to change their focus getting more money out of subscribers they have or another spike in groek to be found in the relative near teerm . Weve stoke about this before. Netflix is in the early stages of conquering a very, very content Market Worldwide<\/a> and also run by one of the strongest if not the strongest management teams in the Tech Community<\/a>. Personal opinion. Reid hastings probably the best in the United States<\/a> today. The trades will go up and down. Going to have temporary aberrations, whatever they may happen to be. Look at the longer term, their ability to create content, ability to innovate, the massive share they have of people that are actually watching video on the internet than that are paying for it, those trends have all gone in the right direction for them. Short term long term, yeah, Different Things<\/a> well see on the trading side, but i want to point out, though sorry. Go ahead, jon. Just going to say, but theres more competition in streaming now and from some players in different games than just streaming. Do you think netflix needs to get into ancillary businesses, take more advantage of the, for now, loyal customers they do have . Yeah. I dont think i think theres in my opinion, for 15 years, or 16 years, weve been investors in netflix and, of course, not active anymore, but made our First Investment<\/a> in 1999, theres been a constant misperception. Which is that theyre having to address a market size issue. A small market size issue. Over and over and over again theyve proven theyre expanding their market more and more broadly. Its not about ancillary services. Simply the market they deal with is absolutely enormous. Moving further into original content and things youve seen in the next couple of years i expect that to get better and stronger. Trades will come and go. People will have sort of seasonal favorites from that perspective, over the long run, if youre involved in netflix as an investor youve been very, very happy and i suspect that will be the case going over time. I do want to make one point, though, when talking about the trump thing. I do have a place that donald trump and i are tight. We have a very, very similar like which is that we both love 1970s red trucker hats. Now, the only thing is, though, our hats, one of our companys zero stack, were going to make the cloud great again. Not America Great<\/a> again. Too big a vision for us. Leave that to donald trump, but were going to make the cloud great again to the point of our earlier discussion, you know, were heading into some very choppy waters with this election. This is going to be a donnybrook. We have to have a couple laughs along the way, because theres a lot of serious times ahead. Way to find Common Ground<\/a> on a week where, maybe weve seen a little less than that than were used to. Paul, thanks so much, Foundation Capital<\/a>. Thank you guys. When we come back, awaiting ta News Conference<\/a> from president obama and the president of mexico, taking place at the white house. Well get you there live as soon as they start speaking. Were back in just a moment. [tires screech] [car horn beeps] [texting keystrokes] we are awaiting a joint News Conference<\/a> between president obama and the president of mexico. It is expected to take place momentarily in the east room of the white house. Well get you there as soon as that begins. Meantime, our john harwood is in philadelphia ahead of the Democratic Convention<\/a> next week and joined by cnbc contributor jared bernstein. John harwood, started with you. Because these leaders meet frequently. They just met last month in canada and im wondering what you think the conversation will be about today given how much talk there has been in cleveland this week about nafta, about jobs being sent to mexico and about our relationship with that country . Well, my suspicious that president obama would reassure the president of mexico that he believes that donald trump, who has vowed to rim ed ted to ript dramatically changed is not going to be elected president. But he might be exchanging words about the u. S. Election process and the rhetoric we saw last night. Donald trump painted a cartoonishly dark picture of america as this hellhole of economic devastation and physical menace. In part, menace created by people crossing the border from mexico. That is something that i can imagine would be unsettling to the president of mexico, and i expect the president to talk a little bit about that, and i am sure that he will be asked about that at this News Conference<\/a>. Jared, last night donald trump denounced globalism by name, but eve ben so, many companies, cocacola, ge, have broad businesses in mexico. How do you america is viewing the relationship right now . I think Corporate America<\/a> is telling you exactly how it feels when it says that Donald Trumps<\/a> position on trade and globalization in general, and immigrati immigration, by the way, very important when talking about mexico is diametrically opposed to their own. So the best that Corporate America<\/a> is hoping in that regard is that trump doesnt really mean it. I mean, trump does say all of my positions are negotiable, and so i think theyre hoping under the radar they can continue to apply those same Global Dynamics<\/a> that have helped and enriched them in lots of ways through foreign trade. Now, remember, the president of mexico has been particularly outspoken about the extremely hateful things that trump happen said about mexicans, particularly early on in the campaign. Theyre criminal, rapists. He has compared trump to fascist dictators of the past. I think this press conference is actually pretty timely from the perspective of both president s youre about to hear from. John, im curious what you make of Donald Trumps<\/a> continued criticism of ted cruz. He seems to be a candidate who thrives having multiple antagonists. Hes not satisfied with just Hillary Clinton<\/a>, apparently. What does that say about the general . A wild and crazy ride. Look, donald trump held a News Conference<\/a> this morning that if it, in any krenconventional sen made absolutely no sense. He had a News Conference<\/a>, might start a super pac to go after cruz, wouldnt accept his endorsement if offered. Continued to muse about the possibility that ted cruzs father had been present with Lee Harvey Oswald<\/a> in dallas. He talked about the credibility of theenquirer, taking information from the National Enquirer<\/a> and spreading it. Alluded to that. However, donald trump is his own man. He has a penchant for behaving the way he behaved today and will keep doing it. The question is, can he break out from the level that hes been getting in the polls on the strength of his support among workingclass white people, especially older and rural americans, can he break out of that . Thats gotten him to around 41 , 42 of the polls, and get to a point where the he could win the electi election . He needs to add voters to his coalition. It is not clear that last night did that for him but well have to watch and see. Still awaiting president obama and the president of mexico in the east room of the white house p. Were going to take a short break. Were going to be right back. [ beep ] but youll be glad to see it here. Fidelity where smarter investors will always be. If only the signs were as obvious when you trade. Fidelitys active trader pro can help you find smarter entry and exit points and can help protect your potential profits. Fidelity where smarter investors will always be. Approaching medicare eligibility . You may think you can put off checking out your Medicare Options<\/a> until youre sixtyfive, but now is a good time to get the ball rolling. Keep in mind, medicare only covers about eighty percent of part b medical costs. The rest is up to you. Thats where aarp Medicare Supplement<\/a> insurance plans insured by Unitedhealthcare Insurance Company<\/a> come in. Like all standardized Medicare Supplement<\/a> insurance plans, they could help pay some of what medicare doesnt, saving you in outofpocket medical costs. Youve learned that taking informed steps along the way really makes a difference later. Thats what it means to go long\u2122. Call now and request this free decision guide. Its full of information on medicare and the range of aarp Medicare Supplement<\/a> plans to choose from based on your needs and budget. All plans like these let you choose any doctor or hospital that accepts medicare patients, and there are no network restrictions. Unitedhealthcare Insurance Company<\/a> has over thirty Years Experience<\/a> and the commitment to roll along with you, keeping you on course. So call now and discover how an aarp Medicare Supplement<\/a> plan could go long\u2122 for you. These are the only Medicare Supplement<\/a> insurance plans endorsed by aarp, an Organization Serving<\/a> the needs of people 50 and over for generations. Plus, nine out of ten plan members surveyed say they would recommend their plan to a friend. Remember, medicare doesnt cover everything. The rest is up to you. Call now, request your free decision guide and start gathering the information you need to help you keep rolling with confidence. Go long\u2122. We are awaiting the president s of the u. S. And mexico, set to hold a joint News Conference<\/a> momentarily at the white house. We are joined stull by jared bernstein, who, of course, is a cnbc contributor, as well as eamon javers in cleveland. Jared, i want to ask about what this afternoon could bring, because we are expecting a Vice President<\/a> ial pick to come from the clinton camp. Do you believe that will be tim kaine . I do, and i suspect well hear this afternoon, although eamon made an excellent point about tactics, which is, if they say in boxing if your opponents punching him in the face, go sit in your corner a while. If the clinton campaigns views the trump team as simmering in ineffectual fallout from the Convention Last<\/a> night and ted cruz, then, yes. The conventional wisdom is tim kaine. How much did the conversation in cleveland this week shape the dnc response well get in fiphiy next week . This visit between the president of the United States<\/a> and the president of mexico came together late last week, and announced relatively late for a president ial visit. Its no accident that the president of the United States<\/a> is meeting with the president of mexico the day after the Republican Party<\/a> nominated somebody whos been talking about building a wall between the United States<\/a> and mexico. Not a surprise, not an accident. Which president pena nieto said mexico absolutely will not pay for. Thanks to everyone for joining us. That does it for squawk alley. As we await the press conference, over to scott wapner and the half. All right, kayla. Thanks very much welcome to the halftime report. Im scott wapner. We are awaiting the president and his mexican counterpart, as kayla said, for that joint News Conference<\/a> from the white house expected to happen in a matter the minutes. We are going to take you live to washington when that happens. First, we do want to get to a big story on wall street today. And that is what we are calling the facebook battleground. Just days ahead of its earnings now, one of the most visible analysts on wall street downgrading that stock. Its on the move as a result today. The facebook battleground is what were calling it today. Bring","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia801201.us.archive.org\/35\/items\/CNBC_20160722_150000_Squawk_Alley\/CNBC_20160722_150000_Squawk_Alley.thumbs\/CNBC_20160722_150000_Squawk_Alley_000001.jpg"}},"autauthor":{"@type":"Organization"},"author":{"sameAs":"archive.org","name":"archive.org"}}],"coverageEndTime":"20240625T12:35:10+00:00"}