Welcome to squawk alley for our tuesday morning. Im in rio, joining me fromport 9 is jon fortt and kayla tausche, but first, this is a good day for the u. S. Team. The u. S. Won six swimming medals yesterday, five of them from rookies. Here are something beginning can katie meili. I im so happy and thrilled. Theres so many people that that medal goes to, not just me. So many people that helped me get here. They really deserved it. I would have loved to have been faster, but ive got 9 experience under me now. I think i can do better. I laid it out all there. Im so happy for kathleen. I came up short, but i left everything in the pool. Such a great night. Theyre all just incredible people appeared athletes the its really cool. The other big craze, guys, as you well know is fell manies face as he as his rival chad le clos shared that television screen. Theyre going to face each other tonight, phelps of course looking for redemption after losing to le clos in london. Gymnastic, swim, judo, youll see some beach volley ball and some rugby, but my favorite, i think phelps face was when your wife eats the last piece of pie. I know youve had good ones, too. Mine this morning was when you dont have time for chickfila in between the two shows youre doing. Meantime in the northern hem fer Doug Mcmillan joins squawk box this morning to talk about the deal they meat for jet. Com. Does the deal mean that walmart is gunning for amazon . Here is mcmillan on that strategy. Knowing where were trying to get to is really important. In our case weve got the we have a grewing business in china, mexico, canada. And what we hope is those markets and our leaders will continue making progress, but mark will focus on the united states, help us innovate in some ways we wouldnt have alone and faster. And thats kind of the opportunity that i look at. Is it fair to say youre gunning for amazon . Were gunning for the customer. S dan, walmart has ahead a few swings. Is this one a hit or miss . This is not baffling. First of all, mark is amazing, but this will be an interesting situation where its more of a Technology Company than a consumer brand. Whatever sales they have made its not because somebody wakes up and says i want to go to jet. So it will be interesting, but the technology of being able to identify the closest location for shipping and the closest available could be an advantage for walmart, because they have all the stores. They can turn the stores into Distribution Centers to compete more effective. If they do that they said containinging of the guard were going a different dprex, so that was sort of buried in the league. This reminds me of apple buying beats similarly for ar 3 billion, but they wanted the tale talent they wanted him to bring the streaming culture to apple. I wasnt very much a believer in that acquisition. I think the record is mixed as far as how its gone. Maybe its also similar to microsoft buying linked in. What is happening in terms of the big giants who want to sec celebrate faster in some technology area, trying to buy the smarts to do it. How is the track record and do you think it can work . The track record hasnt been great, but youre seeing a big move by the five which uss internally their growth plans arent what they were expecting. The track record of bringing in external people who will be in new jersey to manage people in california for a company thats in bentonville, arkansas, thats not one we have seen yet. I dont know how its going to work, but left to their own devices, they have said that business cannot major money unless its at huge scale. So they were going to spend half a billion on marketing to get jet to scale. Walmart has decline to provide any details on lauries employment agreement. A 3 billion man . How high are the stakes . I understand week apple paid for jimmy ivy, because he produced the Biggest Record ever made. The relyships are important, but were not going to know for three to five year whether or not it was a beats we dont even hear much. Beats sales are growing, but we dont hear about it, because inside of apple, its just not that important compared to what else they do. Students thought it was cool that apple bought beats, because it was going to make apple cool again. Maybe well hear more about it when we get an iphone with no headphone jack. Meanwhile, donald trump pulling in less than 6 of what mitt romney had raised from tech donors by this point in the 2012 cycle. While Hillary Clinton is doing better, she still rates less than half of what president obama did four years ago and still less than Bernie Sanders has in this cycle. Dan, is Silicon Valley just sitting this one out . Yes. They are bored and they dont think theres anything here thats new or different. Almost all of the money is for the negative reasons, not for the positive reasons, to prevent one from getting it versus actively endorsing the other. So this is just a theres no enthusiasm in Silicon Valley that i have heard. There are a lot of the main names you know, and theyve gone towards hillary. Those that typically go republican, trump is not their cup of tae. Meg went aggressive towards that was a big step, but theres no enthusiasm. You think Silicon Valley republicans are up for grabs in your view . I dont know anybody will step up for grabs. I think there was more for obama. That felt more important than younger, more tech savvy obvious loy breaking a lot of barriers that Silicon Valley believes in. This one its just that theres not enthusiasm. Lets talk about the survey you did with College Students. Talk about no enthusiasm. It seems that the sanders supporters are not going towards donald trump, at all. But then when you look at overall support, Hillary Clinton pulling quite a bit, 69 , i believe of thats i think it was around 50 . Just under. 59 are they all College Students . Or voting age. College students, just the once who are ellie jib to vote effectively the message is trump will get 6 of the vote at most, zero percent of Bernie Sanders supporters will go to trump. About half of them will go for hillary unenthusiastically. A huge percentage are still undecided the not who theyre going to vote, but if theyre likely to vote. Of those who say theyre going to vote for at party or another, and the green party and libertarians peck up some votes as well, have they indicated how excited they are this. They are clear how unexcited they are. The strange one to me is many of Bernie Sanders supporters were women. Theyre the least enthusiastic switching over to had ilry. So theres cleanly no sense of gender in this issue, and the primary issue they care about, no surprise, is education. Guns, immigration, they moved down to the middle. They are really fox convulsed on this income disparity, about jobs, and, you know, the cost of education, because theyre living it every day. I have never seen a less enthusiastic set of College Students. Weve got about 90 days to see how this shakes out in november. Dan, we appreciate you interrupting your interest break. Youve got to do what youve got to do. The ceo of jet, thank you. Steve liesman has a look at the household dead report, which shows a somewhat more optimistic look . This is interesting stuff, kayla. What we have is new foreclosures dropping to an 18year low. You remember last month there was some data that suggested the consumer indebtedness and delinquencies were right, excess this shows the percent of all current loans is highest since 2006. The delinquency rate must be going down, and it did. Now bankruptcies did spike up 8. 5 , except for some reason that always seems to happen in the second quarter, so not expire slid clear thats an issue to be worried right now of the mortgage debt falling 7 billion to 8 trillion. Household dead increased very slight 0. 3 student load debt, which has been rising sharply, was roughly flat. Kayla, i think the issue is if these delinquency rates and foreclosure rates are so far down, how good is the Banking System doing . Are there issues of reg lease . On. Yeah, more questions being asked about credit quality. Our thanks to you. Coming up, the future of netflix from the man who was there at the beginning. Mitch lowe jones us. Plus an influx of visitors to rio. Ubers head in brazil joins us. And well look at five dame according to angle investor, all major indices are higher right now. S p and nasdaq touching intraday highs squawk alley will be right back. Ppens in the market. But thinkorswim already lets you create custom alerts for all the things that are important to you. I guess we dont need the kid anymore. Custom alerts on thinkorswim. Only at td ameritrade. Narrator kubo est place come on, this way. E. Narrator . Is in the forest. Kubo wow. Narrator so grab your loved ones monkey dont even. Narrator and explore a world of possibilities. Kubo its beautiful. Narrator visit discovertheforest. Org to find the closest forest or park to you. smash like an administrativeyou dont assistant. Dustrial strength your 3 oclock is here. But theres one thing you do. Its called predix from ge. The cloudbased Development Platform thats industrialstrength strength welcome back. The russell 2000 on pace for another closing high. Best day in over a year, that company will get bought by randstad holdings. Small caps certainly a big focus for investors. Go the to keep watching. Thanks, dom. Its getting tough tore compete in streaming, this contrasts sharply with the stock of the 141 , when Reed Hastings outlined plans for mon of expansion. Were joined exclusively by mitch lowe, ceo of movie pass and cofounder and early executive at netflix. Thank you for joining us. Yeah, thank you. Whap happening with content . It seems the value of content itself is pretty clear. We see hulu ditching its free added support service its not clear how many can make money clearly through advertising. Is it the scale game . You know, its completely confusing right now. There are so many options, so many ways to get content, so many people trying to chase whats really valuable to consumers. I dont think anybody has really figured it out. Theyre looking for the absolute mustsee content, the things that netflix and amazon are creating, theyre really seeking that thing you absolutely have to see, and therefore either pay for our subscribe to or watch the ads for. Its really confusing right now. If youre thinking about parting it, call it ten bucks a month, you want to know youre getting the absolute best, getting something that you want live without. Who has that right now . Theres also bit of it everywhere. Net flex has it with some of the their series orange is the new black. Amazon it has it with transparent. Everything haus a bit, but not enough to keep you coming back on a regular basis. Plus theres so much free content that people just keep looking and are completely unloyal to anybody who isnt continuing to give them more good content. If its understand correctly moviepass is 30 to 40 dollars a month for any movies you want to be. Youre just not streaming in the say way that people are at home and internet delivery. How does your model play your broadband connection as home, do you independence up getting folded into Something Else . The way i look at it is movie makers never made their content to be seen on a small screen. They made it for the big screen, for the great sound, and the great picture. Thats where all these downstream deals derive from. How well a movie does in the box office dictates the terms for streaming, for international rights. Its incredibly important for both the Creative Community as well as the Business Community that it succeeds in the theater. Over the last ten years, while ticket prices have doubled and the theaters over the last few years have started to create a great experience, reclining seats, serving food, i think a lot of people have forgotten what a great kind of social interaction it is. Theres no longer do you find the sticky floors and people talking loud. Im hoping we can reinvigorate this. Our subscribers go to the movies twice as obvious when they become a subscriber. Interestingly the bright sales spot for all the theaters with are was food and beverage. How do you convince someone to subscribe to a product that requires them to leave the house. I think people are realizing theres been enough cocooning. More than half of the time you go to a movie, you go with frien friends. When you laugh or see a comedy or scary movie, its not that fun watching it by yourself. We have to remind people how great the experience is. Sbzing to how all these business subscriptions grow. Thanks to coming and joining us here. Meanwhile, we have some breaking news on valiaue valian. Meg, what did the ceo have to say. Joe papa delivering a second quarter, clearly making investors hasnt. Valeant shares are rising today. He said theyre delivering on what they said they were going to do in the first quarter, stabilizing the company. He did say that in every single meeting hes ever taken with investors, the question that comes up is about the companys able to meet the debt obligations. They did say today theyre going to seek amendments on those agreements. He hopes that will make investors more comfortable investing in the stock so they can Start Talking about the pipeline and product and other things more key to the business. Asset sales are a big issue for valent right now. Valeant right now. He said no, this is not going to be a fire sale. Back to you. All right. All important points. Thank you, meg tirrell. Up next ubers big plans for latin america. Ubers head of brazil joins us from rio. Wayfair tumbling after it missed estimates. The kreismt will join us live. Dont go away. Welcome back to squawk alley, live from rio. Getting around the Olympic Games has been a major focus. Congestion and traffic are obviously a big issue. We have the gm of uweb brazil, and he joins us in olympic park. Its great to have you here. Great to be here. Somebody made the point this is the first olympics of the sharing age, right . Is it a bit of a test case . For sure. This is a very special moment. Weve been working really hard to make sure that tourists, locals, athletes, everyone has a safe, reliable and cheap way to move around the street. Tens of thousands coming to the city, some might think its all about surge pricing. When you have the right technology, you can actually to the the drivers where the users are going to request it. So surge has been relatively low levels, what we expect from every other day. Rio is a Challenging Market for. For a time uber was banned by the city. Where does it assistant now . I think the point for us is mobile. In brazil theres a demand. Theres a ranking of the cities with the highest traffic jams in the world. Brazil has 30 cities on the list. So you do have demand. And when you have demand and supply, you have a perfect market fit thats what were seeing in brazil, doubledigit growth every week. Smartphone penetration in the country. Is it high relative to other latinamerican countries . Its growing at a very high pace. When you look at brazil, you still have a high of android, but more and more youre seeing ios, which is more expansive. Were trying to make the service as simple as possible, so anything with an android, ios, windows phone, they can use it. Their argument is uber is global, they have fires to put on the in china, u. S. And europe, theres no way they can understand local customs the way we do. Whats the response . We are a global city, but we try to be as local as possible. In brazil we have more than 100 people working from every single city they operate trying to understand the speaks fillsities of each market. Thats what uber is all about to the greatist cities. Youve launched a couple different products, uber english allows a person to ensure that basically the driver speaking english and safety net lets them tell contacts where they are at any point in the right. Exactly. We made sure we got the best of the best. From the moment you arrive theres an uber lounge where you have people helping you, and then maybe you dont speak portuguese, and you can order english, and maybe you want to communicate to five people where you are, and at the touch of a butt evan, you can share your location with five different contacts. So what we want is to sell uber in rio, and its been great so far. Will we expect to see those in the u. S. . Where you have uber portuguese . For sure. This is just the beginning. When you have the right resources, people and motivation, you get big challenges, such as mobility. Think uber like in congestion in rio is a huge issue. Were saying why dont you take uber pool. Its a safe, and only adds five more minute toss your trip. So you can guess have ipanema to the olympic pool in like 25 minutes. Hopefully. Yeah. Guy, thank you so much for joining us. Hes the gm of uber brazil. Kayla, over to you. Thank you so much. Meanwhile, stocks closing in the uk and across europe, rising for a fifth consecutive session, driving by games along with some upbeat earnings news, the german dax rallies into bull market territory, up officially more than 20 from its february lows. Tice surging, and still down about 76 in the last year. And the british pound spending most of the day below 130 for the first time in a month, and in a times london oped ian miscalfty said easing would likely be required if the uk economy worsens. See the pound at 129 earlier this morning maid jim cramer say maybe now is finally the time to make that trip to london. Yeah, wouldnt mind it. Up next, tech m a is on fire. What could be the next deal . Jason brings us five names. Squawk alley will be right back. Good morning once again form Texas Health Officials say the recent death of an infant in the houston area has been livened to the zika virus. The mother had been recently traveled to latin america when she was pregnant and the baby acquired the infection in the womb. At least one civilian was killed in a suicide attack. The attacker had explosives strapped to his body. No group has claimed responsibility yet. Maine senator Susan Collins says she will not vote for donald trump. The fourterm republican senator announcing her decision in a