good morning, it's midnight at samsung headquarters in seoul, south korea, it's 11:00 a.m. on wall street and "squawk alley" is live. ♪ ♪ ♪

♪ welcome to "squawk alley" for a thursday, joining us, henry blodgett, the founder, editor and ceo of "business insider," h great to see you. kayla tausche at post 9 as well. jon fortt is live outside the samsung unpacked event in new york city and has breaking news at the top of the hour. hey, jon. >> yeah, there's a new phone, carl and it's in the galaxy note family. it's not called a noelt technically. this is the galaxy 6, s 6 edge plus, the same size screen, the 5 million 7-inch screen of the note but it's curved like the

galaxy s-6 edge. which was so popular that samsung couldn't keep up with demand. they're doubling down ott curved screen. that the ceo said would be a key differentiator because competitors would not be able to make the screen. they've not outlined pricing. they've said that the carriers will do that. they're doubling down on the screen and they're also some features they're going to talk about. one of them is samsung pay. we've heard about it now they're demonstrating it. they've got the key credit card partners, they say it will work anywhere you swipe a card. it won't work in places where you have to insert a card and pull it out. but anywhere where you swipe the magnetic stripe this service should work. what's interesting is what they have to say about fraud concerns. whether it's as secure as apple pay or not, apple pay had its own fraud-related headlines this is going to be more broadly available in terms of where you can swipe it. so it will be a target for

hackers. this will be available in korea, next week. in the u.s. at the end of september. also a key feature here, for the galaxy s-6 edge plus, and note 5, live broadcasting with youtube live. think of this as periscope, but with a different kind of flavor and it works with youtube, instead of working with twitter's periscope. they're trying to distinguish the phones with the live video broadcasting mode, it broadcasts in hd. so jk shin here at the samsung event about to take the stage. we can bring you those headlines right now as far as some of what's going to be announced. >> jon, don't go far. obviously the discussion will to be what degree is this an adequate response to what apple has been able to do henry, in the past six months. >> it's a good phone. people like it, they like the curve. we talked about this. it's actually a good problem to have. you can't meet demand. but -- no. i dount it's going to turn the tables, if you want to spend that much on the smartphone, get

into the apple ecosystem. people have shown they ant want to be there. samsung is being attacked in china by high-quality, much lower-priced phones they're caught in the middle. i don't think this turns the tables for them. >> there's the question of whether this is an attempt to front-run apple with its own announcements, samsung normally unveils its new products at the end of september. there's a sense maybe they're trying to a grab headlines with samsung pay with this next galaxy ahead of whatever apple will unveil. >> no question, you got to do something. you might as well try to have the month advantage. i don't think it will be enough to change dynamics. >> jon, you've given us the details. give us your take. >> i think this is going to have a real impact, carl. but the question is how many of these can they make? samsung has already warned they're going to be doing some discounting in the quarter to try to regain market share. they've got pressure at the low end of the market where they're running into xiaomi, and other competitors who are underpricing them at the low end.

at the high end, part of their strategy is going to be discounting. we'll see what they do here. that's going to be key with the note and especially this s6 edge plus as far as margins. it could hurt them, but it could preserve share at the same time. and if they manage to execute on this samsung pay thing, without taking a big fraud hit, i mean being able to swipe anywhere, that's kind of a nice advantage. that could draw some people who are going to pull a tom brady, remember he, the phone that he destroyed was a samsung phone, he upgraded to an iphone. people who are going to pull a tom brady might sit a little longer in the pocket and wait before they do that. >> we're watching the ceo of samsung electronics on stage, jk shin as you mentioned at the top of the hour, talking about these new developments. i'm wondering from the payment side specifically, obviously samsung phones run the android ecosystem. we're waiting to see android pay. is there some competition now between samsung and android in

payments? >> there's a ton. i mean yes. there's competition, you got to decide whether you're going with android pay or samsung pay. samsung's ecosystem is pretty strong. a lot of sal sung buyers associated with the galaxy. if you're watching android and you're watching google and how that's developing. you might have some concerns about how the ecosystem is being fractured. certainly they've rolled out a lot of partners for samsung pay to talk about how great it is. we're going to put some questions to them later on in this hour. and our viewers will get to judge for themselves. >> a lot of people on social talking about this as the details were made public at the top of the hour. jon don't go far. meantime another start-up is shutting down, zen 99 which offered tax help and other services for contractors, announced it will close and return remaining money to investors. company raised $2.6 million in 2014 after graduating from y

begin ator. it happen as few days after the start-up zirtual closed without warn. people are beginning to wonder if this is become -- >> it could be a start of a trend. >> it's definitely could be the sign that we're coming to the end of this tech boom. it's not a bubble. it doesn't look anything like the 1990s, but tech has always been cyclical. the boom will come to an end in the next year or two. this is the way it ends. suddenly, seemingly overnight. folks who have been throwing money at anything, regardless of losses, you should be spending more to grow faster. suddenly -- start to pulling in the reins and say why aren't you profitable yet? and they start demanding profits and things change very fast. >> we have always heard from warren buffett that when you tide goes out, you find out who is swimming naked. that would apply to this situation. jon fortt, i wonder if you think we're going to get some sense

knocked into these valuations given the news that we've had? or if you think it takes a unicorn going bust to recalibrate things? >> i don't think it's going to take a unicorn going bust this is an important moment in the cycle. we've seen this before. it's the moment where investors start pouring more money into the start-ups that have already succeeded or already kind of semi public. the nails like uber and airbnb. but a start-up like zirtual that we've heard about, "fortune" has a good piece on it. it had a nice run rate, but it's burn rate was a little bit out of control and they couldn't get the investment that they thought was going to be easier to get. investors are saying -- wait a minute, you ought to be able to survive on your own. that is going to send a signal here. we'll see how serious a signal it is. these companies really need to suck in the gut and start worrying about burn rate a lot more. >> is there a reason why it should be happening now, henry? >> people will point to reasons. is this the end, two years from now we're in a tech depression.

we start to come out of it. people will say, it was this and this and this. ultimately, who knows? some point the money begins to run out. people get a little more cautious. it could be the threat of rising interest rates. suddenly money is not going to be free any more. >> expectations of all assets. we need to keep our eyes on. finally a couple of stocks going in different directions on secondaries, tesla rallying after planning to raise an additional half billion dollars through the sale of new shares. and then there's shake shack falling after pricing its four million share stock offering at 60. right now shake shack was down about 9% earlier this morning. on tesla, cramer's point this morning was he's a master at massaging the narrative of the stock. and the people point out, not too many ceos buying $20 million of their own shares. >> both of these are story stocks. way ahead of the fundamentals. any time you have a story stock

like that, the story is going to have a big impact on the price and the big difference here is that tesla people think is the company raising money. we know they need to raise money. they're burning a huge amount of cash. elon musk is very sper per swaysive in saying they're investing it intelligently. >> shake shack sun siders unloading after an incredible run from the ipo. none of the money going to the company. it sends a different signal. including the fact they had to price it well below the trading price. >> that's the key difference, one is a new issue, tesla. the company basically saying we want to innovate more, we need more money to do that. the best of our story lay ahead. and elon musk should certainly voting with his dollars and buying up some stock. meanwhile, shake shack knew of investors selling. it's all investors in the secondary and you have the secondary pricing below where shares closed the day before? that's a signal that existing

investors think that this might be at least for the near term where the stock is. >> the stock was 75, just looking a couple of days ago on tuesday, 75.90. now doing a secondary at 60, that's dramatic. >> and well below the trading price, usually it's $1 or two. >> kramer to his credit a couple of weeks ago said a capital raise on the tesla front would outweigh concerns about dilution. it would give the bulls another leg to stand on. that near-term it would be positive. >> elon musk, brilliant marketer, showman. $20 million is couch change for elon. but hey, sends a nice signal. he made way more than that on the stock move. >> this is not shake shack's first secondary since its ipo, it's taken every opportunity given the lofty levels of the stock to liquidate. at a certain point it's going to catch up with you. >> henry good to see you.

joining us from "business insider," jon fortt. we'll see you later on. the dow is back in negative territory. down 26 points. we did get retail sales today that were largely in line with expectations. stoking more talk of when that rate hike would come. given the stream of data that we've had. but the bond market is not showing any evidence of that, the 10-year at about 2.1%. s&p and the nasdaq are both down as well. but very fractionally at that. meantime shares of cisco rallying. profit and revenue toppling analysts' estimates and new ceo chuck robbins saying he was pleased with what he called strong growth of deferred revenue. of course that's one of cisco's main businesses and it's shifting more to deferred revenue and that stock on that news carl up 4% today. we talk about private valuation as moment ago. quick news alert on another valuation, sue herera has that on hq. >> this concerns honest company. which is jessica alba's

start-up. nut val the new value is $1.7 billion. they raised $100 million in a new round of funding, the valuation is now at $1.7 billion. that funding boosted the e-commerce start-ups by more than 50% since it raised funds a year ago. you might recall the co-founder and chief executive, brian lee told "the wall street journal" last year that the company was quote starting to think and act like a public company. perhaps in preparation for an ipo. honest, if you don't know, honest company is an e-commerce site that supplies diapers and baby items to families and individuals who want to order that over an online. and i'm sure a lot of those kids who are wearing those diapers might be watching big bird and "sesame street." well, now they're going to be able to watch it on hbo. because hbo at this point has struck a deal nor new episodes of "sesame street." a lot of kids are now watching

things streaming and on mobile devices and hbo says they want to go to where the kids are. so the, they struck up a partnership with the sesame workshop in hopes of becoming a major player in children's television. i tried to piece that together. diapers, kids -- >> it's a stretch, but you get credit for it. our sue herera at hq. secretary of state john kerry gets ready to raise the flag at u.s. embassy in havana. we're live with a closer look. plus you heard samsung announce its payment service. a top exec from visa will tell us how it works and if it can take on apple. you might not have heard of this company. it boasts a list of investors like eric schmidt, apple's ceo tim cook. the ceo will join us late they are hour when "squawk alley" comes back. can a business have a mind?

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as secretary of state john kerry gets ready to raise the u.s. flag in cuba, start-ups have been moving in, including airbnb which opened doors in april when relation bees again normalizing. michelle caruso-cabrera is live in havana with more. michelle? >> hey there, kayla. airbnb tells news the first two years of doing business here, they listed 1,000 homes for rent. it took berlin and san francisco three years to achieve in a same metric. what they discovered is that there was already a huge

preexisting supply of homes here in this country available for rent. more so than in other typical countries of this size. and here's why -- let's show you. take marta vita rita, she's been renting out rooms in her house for the last 20 years or so. long before she ever rented on airbnb. why? because it was the one legal part of the private sector that was allowed by the cuban government. this is a communityist country. control nearly every industry. they did allow people for two decades at least now to rent out rooms. that drew a huge amount of supply into the market. because people were really incentivized here to do it. and more so than if they were living in a conventional country with a conventional economy, and they had a better job that paid better. here you're incentivized to rent out a room in your neoclassical decaying mansion because you need the money. you have a lot of supply. how do you solve the fact that there's very little internet?

one person told us, airbnb did not solve that, the cubans did. >> airbnb is based on the internet. this is a country with hardly any internet. how do you overcome that hurdle? >> cubans are really entrepreneurs and they have fixed the issue for those. for those that don't have internet they have ways to leverage local connections to represent many. they are hosting partners that represent connectivity of many homes that don't have internet. >> so there's a gray market/black market, reselling of internet. the other issue is that you can pay for your airbnb with a credit card. you can't pay for your hotel with an american credit card. that's also a crucial reason why for example when we met four women from oakland, california yesterday, staying at a neocolonial mansion, that's why they said they had booked here as well. guys, back to you. >> all right, michelle caruso-cabrera in havana. early days for airbnb as it begins operating in cuba. up next, you might not know this company yet, but eric schmidt and apple's ceo tim cook

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it already has backing from apple's tim cook and google's eric schmidt. with 28 days still to go the kickstarter campaign for eco-friendly shower head nebia has already surpassed $200 million. the ceo of nebia joins us today. good morning to you. i would argue not too many kickstarter projects have this list of investors or the attention you've gotten on social media how did first off, talk about the product and why you think it's drawn so much interest. >> you know, it's interesting, we talk about the product pretty much every day, from our lyft drivers to our investors, i guess everybody can relate to a shower it's one of those few u

ubiquity use products. >> it reduces water consumption by as much as 70%. you argue the average shower talks about 20 gallons of water. your product uses about six. how does that work? >> that's right. so what we're doing is creating millions of tiny droplets and creating a surface area about ten times greater than that of a regular shower and we're using rocket science to do this on a basic level. we're using atomizing nozzles used in internal combust engines to create an experience that's immersive. you walk into it and you're automatically drenched in water unlike a regular shower where you move around. you walk into this great column of water. and it turns out people like that experience. >> phillip, a lot of start-ups are borne out of dissatisfaction with existing products. i have to know, did you just not like the shower that you were taking before?

how did you arrive at this? >> you know, i was fortunate. one of my co-founders carlos ran a large fitness club company in mexico. water was one of their biggest concerns and highest variable costs, a public company in mexico. and that was the genesis, together with his 80-year-old dad, we started tinkering and started to find a solution, this was five years in the making. year ago we moved to san francisco and said this is going to reach the world and this is the best place to do that. that's how we got here. >> there seems to be a continuation with the theme, phillip, of health clubs, you guys have equinox, the gym chain as an investor. i'm wondering, is that part of a broader plan to scale this? >> yeah. i mean -- we're interested in building a consumer brand. because if we're going to change the way that people think about water in their daily lives, it has to start where it hits home the most. and that's why when we started building this and we decided what application to use the technology for, we said we have to go to showers, that's where people are least willing to make

a change and use less water if we can create a better experience there, we can do something much more powerful and the brand could be much broader. and so consumers first, and then obviously institutions like gyms and hotels, the sale to an institution is really petty easy once you have consumer demand. because the roi is two or three months in the case of a gym. >> you've got the attention and obviously you raise the capital. now comes the hard part of doing mass production at scale. how many can you -- >> yes. >> reasonably make and points of distribution to the degree it does go retail. where would it show up? >> yeah. you know in terms of mass production, that's sort of the biggest question. that's what we have to work on now. unfortunately one of our other co-founders used to work on apple on the iphone supply chain team and he's a total all-star. we have a sense of what we're doing. we will build all of it if not almost all of it in the u.s. sourcing parts and building parts, in the midwest in old

auto factories and in terms of points of retail direct to consumer at first, we want to own that relationship with the consumer sort of the way where parker did it first, aaron parker advice to us and retailers, restoration hardware or the patagonia store or maybe even the apple store. >> a viewer writes in and says the nebia gentleman going to be rich shlg rich, i would buy that showerhead. best of luck. >> thank you guys very much. >> phillip winter joining us today, the showerhead is nebia. markets closing across the uk and europe. shares bouncing back after hitting their lowest levels in a month. automakers and luxury stocks hit hard this week. greece's stock index started in the green, is now lower as the country's parliament debates the bail-out package that the leaders we thought had agreed to. we'll keep our eye on that. coming up, does all this

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i'm sue herera with your cnbc news update. the national weather service' climate prediction center says el nino is strengthening in the pacific ocean and has the potential to become one of the most powerful on record. forecasters are calling it a godzilla el nino. saying it could bring once in a generation storms this winter to

drought-parched california. the u.s. launched airstrikes against isis targets yesterday. part of an agreement reached last month between turkey and the u.s. and today, the turkish prime minister said coalition talks have failed. edging that country towards new elections. former virginia governor bob mcdonnell has asked a federal court to allow him to remain free while he appeals his public corruption conviction to the supreme court. a three-judge panel upheld his conviction while the full 15-member court said it would not reconsider the ruling. general mills is teaming up with a minnesota brewery to offer a limited edition wheat ale, it will hit store shelves in a couple of weeks, but only in minnesota for now. cheers, that's your cnbc news update. let's get back to "squawk alley."

and cheers to you as well, sue. meanwhile markets here rebounding today after china's big currency devaluation hits day four. but does the move in the yuan threaten to put the brakes on investments in china's tech scene? we'll put that question to jeff richards who is managing partner at ggb capital. jeff leads some of the firm's investments in asia jeff, great to have you, we talked about china being the hotbed for start-ups and for venture capital. because you have a growing middle class and you have proximity to the supply chain. how does the move this week change that scene? >> well most of the investors we work with are long-term investors in china and particular entry our world where we're investing in private companies, watching those companies play out over the next three to five to ten years. there's no other market in the world like china. you've got over 500 million internet users, the largest mobile population in the world. an amazing demographic shift towards younger, mobile buyers. if you look at alibaba's recent

quarter, which was sort of widely panned by analysts here in the u.s., you're talking about $100 billion quarterly jmb run rate with 34% growth and 60% margins. there isn't any other market in the world where you can achieve those numbers. most of the investors we work with, including our firm are investing for the long-term in china i don't think you'll see much of a pull-back based on the recent volatility. >> are there immediate consequences? for instance, does the value of the yuan and its attempted control descent help the exports of some of these start-up companies? do start-ups try to raise more in dollars than in r&b? how does it change in the near-term? >> most of the companies that we're investing in in china are not really that focused on the u.s. most of them are focused on domestic china as their largest market. if anything you're starting to see companies like alibaba and xiaomi start to look abroad at markets like india. the u.s. is not a real big focus

for those. for those companies. so we don't see the short-term currency fluctuations having a big impact other than tp help companies that are exporting out of china and hurt companies importing into china. which it will impact companies like apple and general electric and p&g. companies that derive a huge percentage of sales from china as a growth market. >> and it feeds uncertainty about the future and what's going to happen to capital markets and asset prices and now we have zirtual and zen99, not unicorns, but start-ups failing. and everybody is wondering if this is the tide washing out. is it? >> well you know in my world as a venture capitalist, we see hundreds of companies go out of business every month. it's sort of part of life if our business frgs we batted .300, we'd be in the hall of fame. we see thousands of start-ups go out of business every year.

it's an unfortunately reality of the start-up lifestyle. and for every facebook or uber, you know there are lots of zirtuals and other companies that go under. and entrepreneurs understand those risks, it's part of the lifestyle here in silicon valley. the rewards are enormous and the risks are also fairly high. what you're see something a lot of capital coming into the venture capital market. and you're going to start to see the companies that have raised a little too much capital. with business models that may not work out over the long-term. start to fold as they can't raise additional capital from investors and maybe investors do raise the bar a little bit. given the volatility in the market and uncertainty around their own ability to raise capital the next few years. >> some of the new capital, jeff has been citing the fact that it's hard to get a return in other asset classes for their reason for going into vc. we talk probably too often about when the fed will raise interest rates, but you have to wonder. is there going to be less capital chasing venture capital, when the fed does start to move? >> well it's interesting, if you look at the venture capital

asset class, returns have been quite, quite good over the last few years. and a lot of those investments made by venture firms were made back in '08, '09, which were difficult times in the public market. oftentimes when investors get nervous about about venture capital, it's the best time to invest. when we see volatility in the market, oftentimes what you see folks in our world do here in silicon valley is in some ways licking their chops. those are oftentimes when the best entrepreneurs put their heads down and go to work. salaries come down. office rents come down a bit. there are those in silicon valley who would love to see a little slowdown get things back toe normal a bit and allow the best entrepreneurs to shine. and there's never any lack of capital available for the best companies. >> jeff, there's one line in your cv that we can't overlook, the fact that you've led ggb's investment in square, an ipo forthcoming for that company. we talk often about whether jack

dorsey will end up being the ceo of square. or the permanent ceo of twitter. as an investor, what's your preference? >> well i can't comment specifically on square. as a shareholder. i will say that we are very bullish long-term on the payments market. if you look at ad financial in china, paypal here in the u.s. you look at visa. we believe that the long-term trend towards mobile and online payments is inevitable. you look at hundreds of millions of consumers around the world that are shifting their spending behavior from cash and other forms of currency that happen offline. to online. and so we would argue that the macro trend over the next five to ten years, particularly as you look at new markets like india, africa, southeast asia, not to mention china and the u.s., it's a pretty big trend that i think a lot of investors are pretty excited about. >> we had to ask, jeff, forgive us for that. we appreciate your time this morning. >> thank you. >> jeff richards of gdv capital.

when we come back, a closer look at samsung's newly unveiled samsung pay out in the past few minutes. jon fortt will talk to a top exec live in new york city, but first, rick santelli what are you watching? >> i'm watching the market. i remember when i used to quote for a living, options pit, crowded, active and trying to figure out what the fed is going to do what we're going to talk about after the break? how difficult it is to peg a real value on the yuan and talk about credit spreads after the break.

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break that down and break a lot more down as well, back to jon fortt in new york city. visa's global head of innovation and strategic partnerships, talking about samsung pay. we've had apple pay out for a while. got a lot of experience nourk th. now this is going to allow people to pay with their phones at more terminals. what have you seen in terms of the adoption of this.

what's so great about the adoption of it in the future? in the case of samsung they're launching today the and it will be out late they are summer but we really expect that one of the big challenges today has been the lack of contact with terminals in the united states we have markets around the world, uk, australia, canada, that rolled it out but the u.s. has been more or less big metro markets. with samsung pay and the ability to use the magnetic stripe read heads on terminals you go from 700,000 devices to ten million devices. so everywhere you could use your card, your visa card, you'll be able to use this device. >> i saw a demo of this. it looks great, works with equipment that's years old. but you wonder about fraud. what if somebody knows information about you. and is able to get ahold of enough to try to athent indicate and get your information to a phone. is it enough to stop you from getting hacked? >> this is behind the scenes,

what the banks do when you ask them to put the credential on there, it's not the card they issued you, they leverage the same processes that they do to get you this card. they'll run a bunch of checks behind the scenes, including information they receive from the manufacturer. the telecommunications providers. how your card works. all the data goes to an underwriting mechanism. they check, reach out to you via a one-time pass word to a call center to verify your identity. >> we saw apple payroll out. it's got a loll way to go. does this mean we'll have a big fall for contactless payments, given that some of the currency folks, who were hesitant on apple pay to jump in.

>> when think about the visa story, 50 years it took to us get two billion of these devices in the market. now with apple and ios and apple pay, with samsung pay, and android pay using the android operating system. we've effectively covered almost 100% of the smartphone operating system marketplace. so while it's still early innings, with android and samsung coming on board. we think is going to start to get a lot of momentum behind it quickly. >> you deal with more than just smartphones and contactless payments, you deal with innovation writ large globally. what are you seeing in terms of consumers' willingness to pay and spending outside the u.s.? because there are lots of questions and concerns about what's going over in emerging markets in asia right now. >> we still have a really healthy runway in front of us. from where we sit, we've still go after cash and check. so yes while we move with the broader macroeconomic trends for us it's taking cash and check apps.

taking about the seven billion of these devices that can be used at points of sale. and i can use a fingerprint to buy in an app or buy remotely. it's the holy grail now with the new credential we've put on here with convenience, combined with increased skrt. i think it's a real win for consumers and merchants looking to buy things. >> a year from now, two years from now, is it a phone story, or an internet of things story? you can use apple pay with an apple watch. do you expect samsung to dot same. they've got multiple watches available. what say you? >> it's the same story. these are the early cooped of internets, but when you think about the wearables marketplace and think about connected cars, the use cases are mind-boggling. where i sit inside of visa, two billion of these, 50 years. seven billion of these, easily north of 12, 20, 25 billion internet-connected devices all with a credential in them making commerce easier? it's going to be an incredible journey. >> not asking to you pick a winner. you've seen a lot in the payment space, what's going to determine

which pay method wins in the long-term? apple pay, samsung pay, android pay? >> it's the consumer. if you step away from the pays for a second we call them and look at the devices, you know there are a lot of apple fan boys, a lot of people love their samsung devices, people like android it comes down to consumer choice, we want to enable all of thoughs devices to make it easy for commerce, consumers and merchants. >> jim mcgregor, head of innovation for visa and a sharp dresser, i must say. kayla, back to you. >> we were thinking the exact same thing. sorry i didn't wear my summer sport coat today. great stuff. see you later on. up next, vox media is now worth more than $1 billion after an investment from our parent company, nbc universal, we'll hear from the vox ceo next.

mild action compared to yesterday. let's get the santelli exchange in chicago, hey, rick. in this day and age of immediate gratification, it's something to ponder as to how hard it is to get quick fixes on true value. especially of a currency, yuan whatever you want to reference it as. the chinese currency. especially considering all the internals there. the liberalization going on. the thread or the excuse, in air quotes of why some of this activity is occurring. i think it's more about timing, we know what's going on

timingwise, with the chinese economy. you have onshore values, offshore values, even though the spread is coming in. what do many of us still like to talk about? i do and i'm guilty. but you see me using charts like the yen versus the yuan, the pound versus the yuan. the south korean versus the yuan. why do we do that? because the dollar index is great. because many thought that the world power that we were going to be most concerned with, especially in the many years since the dollar index was created, was going to be the eurozone and in certain ways, they were correct. but sometimes we take u-turns. here's the problem with the dollar index. it's euro centric. you put a dollar up and you have your dollar index and the euro, basically the same chart with good reason. 57.6%. yen of course second at 13.6. you see the pound, the loonie, the canadian dollar and the small numbers, what don't you

see here? n anybody? on my radio? i don't see the yuan. so we have to use alternatives. but i do want to stress that over time my guess is like the federal, understands this dollar-weighted. dollar-weighted value for the dollar is something they look at, trade-weighted. the reason that's a such an important aspect. the euro currency. we're going to talk about another topic very quickly. look at the following two charts, these are one-month charts, thank you, barclays for letting us use them. the first sin development grade and we see the chart is moving up. the spreads are widening. you see the second chart, like to call junk, high yield. you see the spreads moving. we talk many times about what's going on to regard to high yield, in general on their values. let's not forget that the

normalization is going to have a huge impact on credit relationships and many are going to be shocking and the final note we still haven't had the settlement under 275 and the 30-year bound. circle it that's your pivot. we start it get below there in an aggressive fashion, it will be symptomatic of a whole lot of extra buying coming in carl, back to you. rick santelli in chicago. we'll go back to the samsung event in new york city for the latest on the company's plans.

> in case you missed it, nbc universal parent company of cnbc is investing 200 million in vox media. after the investment, vox will be worth over $1 billion. vox owns websites like sb nation, the verge and more recently, acquired re/code. the ceo talked about the deal on "squawk box" this morning. >> we couldn't be more excited to announce the strategic partnership. there's a financing element and there's going to be a bunch of

partnership elements, too, ranging from creating great programming together. particularly video programming. to doing some cross-promotional efforts. to building some value for brand marketers, brand advertisers across our two great platforms. and then also leveraging vox media's chorus technology. which is platform that helps us build great media brands like we have over the past few years. like we're excited, we think there's a great fit. >> it's the technology, carl, that's being cited as the reason that's propelling the valuation for vox above the $1 billion mark. way beyond the former high-water mark for media. >> andrew asked them if they would ever buy gawker, he said he had great respect for the ceo but had no plans to buy it jon fortt outside the samsung event in new york city, you want to put a cap on this? >> you know, carl, what did we get? we got the galaxy note 5, which

we expect and a curved version that we didn't expect, the s6 plus. but samsung pay going to get a lot of headlines here. i'm thinking about what is the impact on overall ecosystem. other android makers are in deep trouble. we saw through lenovo's results, motorola, not working out well for them. samsung has an ability to do payments within an android ecosystem. but in a special way. you got to imagine them continuing to take share within android. what kind of event. my gut says maybe not as much as you might think. though they're available more places, apple has strong market share in the u.s. ios users, tend to be loyal, it's not clear that people are going to switch from apple to samsung, to be able to use their phone to pay in more places, incrementally this is better for samsung. apple and samsung has been a two-horse race, it looks like this is going to keep it that way for a while.

we'll see. >> and of course, we're just a few weeks away from what we expect will be a little more clarity. >> we expect to see a new iphone, we're assuming it's going to be the 6s and 6s-plus. only about 30%, a little less than 30% of the apple iphone in stall basis is on a 6 or 6plus, they want to get the rest of those people to buy a 6 or 6 plus, which we should see the price go down or even better, to see them jump straight to the top to these newer phones. if they do that, and if emerging markets and china is also excited about this new phone, it could be a good fall for apple. investors aren't sure and the stock has been all over the place down lately. >> it's kind of nice to get back to talking about phone features after a few days of worrying

about the chinese economy and 4-x reserves. today the story is largely about crude. as we're seeing new lows about crude. 4219 is the latest check on west texas, markets taking it kind of in stride. >> consumer discretionary has been the sector outperforming because of the retail sales that came in that came in in line. that's bucking the trend from what we've seen from kohl's, that stock has been under pressure for much of the morning. on its weak earnings report. i know you guys talked about yahoo earlier in the day. it's up about 4% on an upgrade from bernstein on the back of alibaba's long-term growth. >> a lot of talk about maybe putting some money back into yahoo after being such a horrible performer over the past couple of days. retail sales up .6, the biggest category was nonstore online. people making the argument,

prime day on july 15th. probably helped elevate that number. on the headlines. >> and potential boon for fedex and u.p.s. we'll see. >> home depot earnings, there's a lot to look forward to. >> let's get over to headquarters, scott wopner and the half. ♪ welcome to the halftime show. let's meet the starting lineup. joe terranova, along with josh brown and pete and jon najarian. secondary school what our experts say you need to know at this hour about the shake shack and tesla stock offerings. calls of the day, gopro, microsoft, yahoo getting love from the street. now we find out whether our own analysts agree. we begin with the markets, it's been a wild 24 hours, the sell-off, the reversal, china remaining a major story with yet another currency intervention. which has sent the dollar