good morning. 11:00 p.m. in china. it's 11:00 a.m. on wall street. squawk alley is live. ♪ >> welcome for ae friday.

welcome this morning. live from singapore. the founder and manage partner with ggc capital. haney, it's great to have you back. caleb is out today, but john and i trying to hold down the fort. starting with the markets, we're seeing some selling after the fed did hold off on raising interest rates yesterday. all the major averages are down. dow down 180. session lows down about 250 or so. price of crude also falling today. down about 3%. we're all sort of having to reassess the pace of global growth all around the world. haney, that's where we're going to start. let's start on the macroand broad. after what the fed said yesterday about how international growth is affecting their psychology, where is your -- let's take your temperature and see where things are going over the next few months as we get into some of these other fed meetings to come. >> when you focus primarily on the u.s. and china, there's been a lot of news about china and the slowing economy in china, and it's our belief that the

growth in china has been -- the slowdown in the growth in china has been a cyclical trend. it's not a structural trend. it's a cyclical trend. there are lots of issues. i this i there's lots of positive things that have happened over the last 15 years. it gives us a sense to continue to be bullish about the long-term effects of china. the last 15 years 700 million middle class consumers were created in china. the interior thing in china right now is many of these consumers are learning how to transact and consume through technology. i think that's really the push that we're seeing and why we're still bullish about the growth in china. the on-line economy in china is still growing and, frankly, the on-line and tech economy in china is eating the old line economy. it doesn't mean you're not calling for growth to go flat or negative or for china to go into recession. can you characterize the degree to which you see the cycle going down? >> i think it's going to be different for every industry

sector. i think old line economy companies may see a slowdown and may actually see a decrease or a recession, if you will. many of the companies that are involved in the high-tech industries that are consuming and taking it really depends which part of the economy you are in, whether you see growth, what kind of growth, and how fast that growth is. >> well, haney, how long do you think this cycle is going to be because even if a new economy companies do better, they are sure to be affected by a downturn. >> i don't know how long it's going to last the slowdown and the growth. >> i still there will be opportunities many had many of these sector says for a lot of growth.

30%, 50%. >> the bears on china will argue too much of the economy is still dependent on investment. a lot of that obviously state investment. then there's the slow draw of capital away to the point where some expect some sort of systemic credit event down the line. is that even in your realm of possibility? >> you know, i am not an economist. what i see is firsthand knowledge on the ground knowledge that some of our portfolio companies and the growth they're saying. the interesting thing is that some of the growth that our companies are seeing are becoming at the cost of some of the off line or on-line companies. e-commerce is -- the main reason is retail sales in china is broken. if you walk into any store, whether it's first tier city or second tier city, the selection,

sizes, colors, et cetera, are -- there's nothing available. you go on line and there's a much wider selection. customer service is first rate, and i think consumers are getting better prices. as a new entrant -- as consumerism and where are you going to go, are you going to a corner store that may not have your size, or are you going to shop on-line where you know you get your size, and you can get it very quickly. even faster than the two-day service you are seeing here. same-day delivery very, very quickly at a price that's lower than you can see in off line stores. >> 15 years after its founding, the web, and e-commerce giant

goes forward. >> you know she's a fictional character, though? >> i have been watching that movie for about ten times. >> my point, though, this is the beginning of alibaba. i think the information revolution is just the beginning. >> we just started the first indication of $80 to $83. >> $08 to $83 is the first indication. >> there's a ton of buzz, and there's a good bit of buzz on the retail side. there were reports of strong order flow at td ameritrade. >> looks like it potentially could open around $90. how do you feel about that price? >> i'm excited. >> you're excited about it. we're all excited here. >> alibaba will open in ten

seconds here, and we're going to get an indication right now. >> opens at $92.70. >> and since its ipo one year ago tomorrow, shares of alibaba have dropped for 40%. the once high-flying stock down nearly 40% -- sorry, 4% from the ipo price. 40% year-to-date. haney, as one of the earliest u.s. backers of alibaba, your cost basis is a lot better than people who might have gotten in after that ipo, but have you sold any seeing perhaps turmoil in china coming? how are you feeling about this downturn that the stock price has taken since a year ago? >> we haven't sold any stocks since the ipo. in terms of how we feel about the company since the ipo, look, i think we're a long-term role

on e-commerce. e-commerce is one of the sectors in china that we feel can weather just, you know, just about any economic storm that we see because of the consumerism that's going on in china. in addition, i think there's still a lot of head room for alibaba in modernization. reason as a percentage of the gmv, they're very low relative to their piers and even some of the international competitors. i think there's plenty of room on the modernization aspect. lastly, i think the valuation extremely attractive. if you take a look at the company, you take out the cash, you take out some of the strategic investments, even if you value some of the investment bankers are valuing it at $10 billion to $15 billion, it's only trading at 16 times next year's earnings. this is for a company that's at scale and growing almost 25% to 30% per year. for us that's a really, really cheap stock. >> haney, we're looking at a big lock of expiration. we get expiration from time to

time. this is a big one. meantime, all those critics, barrons the most recent saying, look, don't expect a reprieve. the guidance on gmv. obviously, what john said the stock has done. are you expecting tougher times at least for the shares before they get better? >> you know, i don't really pay too much attention to the short-term market flunk weighingses. if you take a look at some of the best companies in the planet, the share lockup timing has been one of the best times to buy the stock because of kind of just the moment wrum that happens when institutional investors are trying to figure out the right timing to buy it. historically it's been the best time to buy some of the big leaders, whether it's google or facebook or others. it's been the best time to buy the stocks. >> haney, give us your read on the chinese consumer on the ground right now. quite a few companies that have high hopes for sales in china towards the end of the year. not the least of which is apple, which has an iphone 6s and 6x

plus coming in the next few days. do you think it's going to be a bigger seller than some people here might expect or perhaps sell less based on some of the things you're talking about in the economic cycle? >> i would wager that the rose gold version of the iphone -- i think there will be a hot seller in china. >> in terms of the overall economy, i think unit volume is not decreasing. i think people will continue to spend money in china. what i am watching carefully, is the wealth effect. especially with the stock market down and being very driven by individual investors. i think the wealth effect could have an impact on the top 1% high-end sales, the gucchis and the pradas if you will of china. that's where we might see weakness in e-commerce in china. i think for the standard, average man, i think you're going to see continued strong growth there. >> finally, haney, you know, when i go to china, we always fly over these towns with the massive condo that is are largely empty. i just wonder -- i know it goes

through my head when i see them, but i wonder what you think when you see them. >> look, i think we went through a property bubble in china. i think the government has done a pretty good job so far of trying to ease that and deflate that a bit, and we are starting to see signs of occupancies in many of these ghost towns, as you call them, carl. you know, i think they've done a fraet good job, a measured job, if you will, to address that. the market is the next bastion of growth, the government was hoping for. i think there was some misexecution in terms of trying to stabilize the market. i do believe that over the long-term they'll get it right. so it's hard to bet against that. i think you're going to see the market stabilize in china. i think you're going to see the strong companies get out in front of the public markets, and i think you'll start seeing good growth. the interesting thing is that very few tech companies are public in the asian or chinese markets. many of our companies now are contemplating going public on the share. these are stroonk tech companies

with good growth, good governance, and i think you're going see the stock market in china get much more institutionalized or professionalized over the next few years. >> yeah. maybe part of the evolution of their capital markets. haney, we'll have to wait and see. we appreciate your time half hour way around the world. i'm talk to you soon. >> thanks again, carl. >> haney joining us founder, managing partner over at ggb capital. >> netflix reid hastings sitting down tore an interview with jim cramer. we'll look at some of the highlights. >> plus, apple's latest operating system changing the game from google and maybe not in a good way. what that means for both companies going forward. still watching these markets we have managed to come back a little bit from the lows of the day. the dow is down 184, more than a percent. we're back in a minute. being a keen observer of the world has gotten you far, but what if you could see more of what you wanted to know?

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>> john steinberg has made his way this morning. good morning. >> good morning. >> reid hastings today sitting down with our own jim cramer in san francisco. you're going to see more of this on "mad money" tonight, but we already have some highlights. >> you know, the taxi cabs haven't been able to hold back uber. wal-mart has not been able to hold back amazon. really it's a sector thing that the internet just offers such power. >> well, but why is it so important to talk about the competition? is it just because you're a

competitive guy? >> you know, we talk on our earnings call just like we talk with our board of directors. >> yeah. >> we try to be transparent. we give our exact internal forecast out. we're not trying to play with it or massage it. we talk with competitors the way we talk about them inside. i don't see why it's a difficult topic. we've got some great competitors. you know, hbo, we've grown over 40 million in the u.s., and hbo has continued grow despite our growth. >> yeah. 28 30shgs. >> well, they're over 30 in the u.s., and then over 100 globally. you know, they've really led on the other side of getting good at technology. like hbo now and netflix. the two of us just have a great rivalry. >> echoing sort of what hastings has said before, and that is rising tide will lift all of these boats, whether it's amazon or google or apple or anyone else. >> nbc universal as well. our parent company. let me give you an example. mr. robot is a netflix quality show. when cramer did the interview, and he said why does netflix

have this advantage? why can't other people compete? the question is not why can't they compete? it's why are they being so self-defeating? you basically can't watch mr. robot right now. the experience to watch it in the usa app. there are six commercials loading 30 seconds. you can't fast forward when you watch it on sbot. as soon as each additional companies decide to get it together and do the stuff that's more functional and user-loving, i think there will be more competition from the entrenched buyers. >> the beauty of netflix and darn you, reid hastings, for so long i wasn't suicide bomb subscribing to netflix, but my wife is hooked on orange is the new black. now we're doing it. it's just really well. from the user perspective, the way episode after episode will play. my kids are already hooked on netflix shows. can we just watch everything on netflix now? that and we're going to talk about ad blockers that's along the same lines. putting the user experience first matters, and netflix has it done down. >> i don't think that netflix user experience is so great.

>> how could tb better? >> i don't think the alga rhythm is so magical anymore. i think people go in to see orange is the new black and -- the competitors are so bad. i actually think -- i actually think the bar is not that high. it's just for some reason they play so absolutely -- last night i got home from dinner with some of our watchers, ivan the k and cramer shirt, and i wanted watch mr. robot, and i thought, oh, my god, i can't bear to pull it up on sbot. you can't fast forward. >> with kids shows, can you search for shows by character. not just by show. that takes the experience further. >> think rolled out tens of thousands of these talking remotes where you can basically say the show you want to watch. it sounds a lot like siri. it's ease where i to count out the incumbents. you get new thinking in there, and i think they can come up. especially when it is just about the shows. just about the programming. here in as good of a position as anybody.

>> especially in some countries that don't have anything like this right now. of course, the rest of jim's exclusive with reid hastings will air tonight. "mad money" 6:00 p.m. eastern time. you do not want to miss that. next up, a significant number of apple customers say their phones are crashing after attempting to upgrade to ios 9. the issue appears to be hor common in older i phones and ipads. we did reach out to apple for comment, but so far the company has not responded. speaking of ios 9, wuft most popular features allows users to, as john just alluded to, block ads in safari. as of this morning three of the top five paid app on the app store are now ad blockers. what a battle this is setting up between apple and google and some others. >> you know, what i have been saying is you know the morning of ios 9 launch if these aad blockers were at the top of the charts, if there was potential for it to be an issue. they are. peace, which was created by marco, a tumbler developer, the creator of insta-paper, a renowned ios developer. has the number one paid app called peace. there's crystal and purify.

i think it's in the early stages. the big kind of fight that's being set up here right now is that these blockers block double click for publishers. google's core product, which almost everybody use it serve ads. there's been a lot of articles. the had article about this. this is apple shooting over the bow of google, and it's very much a competitive move because, remember, in their apple news product, they can serve ads in there. >> you know what, it's google's fault. i got to lay this at the feet of google because google, of all companies in silicon valley, has known that the user experience and speed is absolutely key. that was their mantra with the home page and with search. with the ad product, they've let that go to the wayside. i mean, the worst experience that you have on any mobile device is trying to load web pages. it works on the web. some pages never load at all.

>> source spoint one of them. >> fight ads. >> tools that publishers can run to burst through an ad blocker. page fair is one of them. source point is another. the other option is that we could begin to first party ad surf. rather than using google's technology, we can literally hard code the ad. we can do that with an image. this will be something that we are constantly evolve and fighting now. >> if you bust the ad blockers, you are doing what usa is doing with a show. they are making the user experience worse in order to shove ads down people's throats. >> that's a question of ad load. i'm not saying -- there needs to be a balance there as well, and these ads may be less intrucive and may load fast earning but ultimately if someone is coming to our site and not paying us anything, we don't care if they're reading it. >> one thing i have to get in on this, ios 9 download and the

issues people are experiencing. you have to remember, tens of millions of people probably an hour in some cases are downloading this new operating system. the adoption has been faster than ios 8. >> hard when everybody is trying to get through the door at once. >> yes, indeed. >> good weekend. >> john steinberg, daily mail north america. john, go ahead. up next, still looking at a selloff on wall street. major averages down just about 1%. nasdaq actually tech doing better than the rest. here at the td ameritrade trader group, they work all the time. sup jj? working hard? working 24/7 on mobile trader, rated #1 trading app in the app store. it lets you trade stocks, options, futures... even advanced orders. and it offers more charts than a lot of the other

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>> you call -- it was a good run. >> i need you to be my agent end of the we're. >> what went wrong yesterday? >> sfla the fed lowered its growth forecast. the tone was pretty tame. to me the market got nervous when it heard yellen harp on the fact the global economy is weak spshgs they're watching global developments, and they're particularly watching china. people got nervous, and we're seeing the fall-off from that today. >> bill, now the take is that they've raised the bar for a hike given their tone yesterday, and that -- those who were calling for no hike in 15 were right. do you agree? >> in fact, what i was saying was that they have thrown a whole bout of uncertainty in the markets because the fed has changed its behavior. it never used to act on it. it was vigilant, and it used to watch, it but now they've acted

by taking inaction. the yellin put is alive with well. >> how does this affect the rest of the we're? we're heading into the holiday season. we have a number of companies that are banking on big sales. apple keeps coming up. we're talking technology here. windows 10, a lot of pc vendors are hoping for bigger sales. will the performance that we see coming out of retail have a big impact you think on stocks? >> well, let me say this, swron. the u.s. consumers are in reasonably good shape. nearly 70% of spending is services. the retail sector is very small. what i can tell you is the u.s. economy is reasonably healthy. the job market is good. tax receipt collection shows income is good. we're getting lower gas prices. the holiday shopping season should be good. it should be excellent for retailers. overall consumption should be good. the problem is the remaining

part of the economy capital spending and net exports, that remain 20%, 30% -- 20%, 25%, rather, is going to look horrible. retail, i like. the other stuff i don't. asian data. i think it's crazy. >> yeah. so on that point, bill, what happens if we get some of the unemployment figures that they're forecasting and things continue to look good. housing still punches above its weight. china remains weak. we're going to start weighting data in that case. >> isn't that amazing that we're going to let china run our u.s. monetary policy? we were ready to go. she even told us we were ready to go. based on u.s. data and all that joe was saying about the consumer, which i fully agree, u.s. data, we're ready to go. now we're going to wait for china? what are we going to learn about china in the next few months that would convince us things have changed? it's easily going to be next

year before we learn enough. i don't believe china is the excuse. i think china is a coverup. i think there's another reason behind it. maybe we will find out exactly what the reaction will be. many don't have the confidence. it's probably a fight within the committee as to how much confidence they really have. >> you know, it's fun where i. bill talks about the fisher speech. some people read it as being hawkish. i read it as being neutral. i looked at the charts fisher had in the fed simulation, which i call rigorous speculation, theyave no idea. those sharks showed a newscast where i hit to gdp in and deflation from the dollar rise. it's continued. bill is right. there's a tremendous uncertainty on inflation. that's why i said, carl, i thought the news was dovish because they don't see inflation

until 2018. >> well, we'll see -- >> the dollar only went up 2% higher than the point in march. >> maybe we'll learn a little bit more because she does speak next week. at least that's on the calendar. joe, bill, good weekend. thank you, guys. >> thank you. >> thanks a lot. >> meantime, it is exactly 11:30 on the east coast, which means europe is about to close. simon. >> the yellen put was alive and well under markets when it sure doesn't feel like it in europe. as you can see. european equities are down heavily in the wake of the inaction from the fed yesterday. i'll come on to some of the detail about that. as far as the central banks in europe are concerned, it really puts the pressure on them to act. if the fed isn't going to raise rates, you don't have divergent policy with ecb, and, therefore, there is a suspicion they're going to have to go further. can i hand this back to you? >> we are going to watch obviously europe, the dax having a miserable day. down about 3%. in bear market territory, by the

way, from the april highs. we're going to watch that, and the ancillary affect on the markets this afternoon. the selloff continues. some of the top losers on the dow. merck, goldman, somewhere p morgan and exxon. more on that, and apple's ad blocking plans with cara swisher of rico in just a minute. it took serena williams years to master the two handed backhand. but only one shot to master the chase mobile app. technology designed for you. so you can easily master the way you bank. it's from virtually anywhere.rn of danger it's been smashed, dropped and driven. it's perceptive enough to detect other vehicles on the road. it's been shaken, rattled and pummeled.

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>> good morning. i'm sue herrera. here is your cnbc news update at this hour. the u.s. plans direct talks with russia over russia's military build-up in syria. secretary of state john kerry says the pentagon will take the lead in those discussions. russia has recently beefed up its military muscle in syria in support of president bashir as wraud. the u.s. believes assad should leave power. croatia says it can no longer accept the refugees from war-torn countries in the middle east, africa, and az wra. the prime minister says they will get food, water, and medical treatment, but they must then move on. >> 15,000 people for a welcoming ceremony on wednesday. it will reportedly take place on the back lawn and include catholic leaders and parishioner from around the country. they will meet woun one in the oval office after that ceremony honoring him. >> a new study says women who

spend six hours or more sitting each day have a 10% greater risk of getting cancer. researchers also say prolonged sitting contributes to fatty liver disease. previous studies show it also increases our risk of heart disease and early death. whatever you do today, don't forget, get out of that chair and get walking. that's your cnbc news update this hour. back to "squawk alley." carl, back to you. >> thank you. the company also rolled out its ad block capabilities. some users having difficulty with the upgrade. this all ahead of the big iphone 6s launch next week. cara swisher joins us this morning to talk more about that. happy friday, cara. >> thank you. happy friday. >> you guys have a piece about ad block and peace. something that john has already downloaded for, what, $2.99. is this a game change sner. >> yep. you know, i think these things

come up periodically. it's a great app. if you want to block your ads, it's done by someone who is really fantastic developer of ad blocking technologies, and it also is an ios developer. you know, i think a lot of people don't use them, but enough people, especially tech savvy people will use them to get a better experience on their mobile phones. you know, the big controversy is around it. it's clearly an attack at google by apple in some ways because they don't rely on advertising for their finances. i saw an interesting stat. in germany 40% of mobile users are using these ad blockers. if you get this particularly affluent end of the market that's using ios devices, and those people are blocking ads, isn't that going to shift the way that content producers try to make money off of things move

more towards native advertising, more towards ads in video, more towards ads in apps where they can't be blocked? >> ads are challenged on mobile. it's -- ad blockers are just the latest in the difficulties of doing correct ads on mobile, and i don't think anybody has found a solution. they're just all bad solutions. i think it's incumbent on the advertising industry and the marketing industry to come up with creative ads, new ways to do advertising, or the publishing industry to say, look, we're not going to make money on these devices. we have to find other ways. subsubscriptions, additional purchases, ways that ads are more creative, and then it challenges them. it's not that we're making tons of money here spshgs now it's over. >> this isn't about the advertising itself. i don't really mind ads in stores. it's the page load times. make me see an ad, fine. just make it snappy. you know, make me pay for the

content if it's good enough? i'll do it. don't force the page to hang up for several minutes or i'll move on. >> it's like a second, and you are super impatient because everybody has become impatient. >> some sites i can't get to load at all. it will be several minutes. >> it's not a minute. >> yeah, it is. >> all right. okay. >> the experience doesn't lend itself to even ten seconds of waiting. these instant articles of facebook and others are doing, it creates quick load times. the ads come in quickly. that's an interesting trend. the thing is the advertising doesn't work on these devices. how do you create advertising or marketing or a way to make money for the content that works? there are lots of different ways. there is subsubscriptions and other ways to make money. can they figure out a way where advertising, you know -- apple is interested in the consumer experience. it doesn't mind screwing with

google a little bit. >> it's really incumbent on the googles and the advertising industry that makes money from this stuff to really think hard about what this experience for consumers is like. >> right. meantime, these headlines out of the guardian today, cara, that apple executives met with the california department of motor es in this hour-long meeting back in august. a lot of jokes this morning about how even apple had to wait four hours at the dmv. you know, tim cook didn't walk by the idea too much on colbert this week. what do you think? >> no. they're working on a car. they've hired like crazy, and some very significant hires out of tesla and other areas. bmw has done a really interesting swrob in this area. i think it's the i-3 or something, the name of the car. this is an area that they are moving into. companies like google and apple have to show significant growth and the idea of mobility in a

car, mobile in mobile device is really important, and so they need to make these steps. because it's california, they -- it's highly regulated, and so if they're going to be doing these things, they have to work with regulators. it's natural that this is the next step. >> is this apple television all over again, though? might we be misreading apple's intentions here? maybe here not coming out with a car. maybe they need a driverless fleet to do their maps. maybe they want to, i don't know, buy a car company at some point in the future and have something to fold it into? >> they have to -- you know, they'll make a car to do proof of concept. they all do that the way google has. they have to show what it might look like, and the question is apple really does manufacture everything from soup to nuts in the computing space. google is more like a microsoft where they provide the system like android does. it's an interesting question. will apple want the entire experience to be an apple experience, or will they want to provide the software and let the hardware with someone else? i would tend to think they would want to possibly make the

product, but that creates a whole host of regulatory issues that is a buzzsaw for lots of companies, and it's a very difficult management experience, i suspect. >> interesting. i'm thinking back, you know, when they did away with the i. it's not the iwatch. it's the apple watch. maybe they saw bmw had the i already. they knew they were going into this category long-term. we'll have to wait and see. >> i think they have to -- they have to make some sort of car to show what it would look like. i can't imagine they wouldn't. so -- >> great weekend, kara. we'll see you soon. >> thanks a lot. >> kara swisher over at one market san francisco. up next stocks still in the red, but off the lows after yesterday's fed decision and someone who has plenty to say about that. rick santelli. what are you watching today, rick? >> we have to do a postmortem on the fed. i think i would deem that missed opportunity. i don't know, is it really so complicated? too low on rates gives you too low on growth, which gives you too much downward pressure on

prices. zero, zero, zero. light, light, light. what's so hard to understand? come back after the break.

kroup the halftime show, what to do now amid the uncertainty. did the fed make investing easier or much more difficult? van garde's head of investment strategy tells us how he is positioning the firm's $3 trillion in assets post-fed. and we hear from netflix ceo reid hastings. is the best performing stock in

the s&p this year still a winner? we will attempt to answer that question and so many more, carl. see you in about 15. >> sounds good, scott. let's get over to the cme group. rick santelli and get the santelli exchange. >> hey, rick. >> hi, carl. the speed of light. speed of light is 299,792,458 miles per second. why do do i bring that up? maybe we could learn something from the speed of light. if you have a car going 100 and the other car going the other way at 100, and they crash, the point of impact is 200 miles per hour, but if you have a car going at the speed of light, crashing into another car going at the speed of light, the impact is the same. it's just the speed of light. things get weird at that level. normal economics, in my opinion, don't apply. i think it's about time that there's more flexibility in this organization known as the fed or the organization on a bigger

level known as central bankers. maybe they just need to think a little bit more outside the box. my read on yesterday is it's so much more than interest rates. it's reversing so many had things that have become normal and part of the financial fabric of the marketplace, and the credit markets and the credit spreads that normalization is what the fed fears. they fear the outcome of their own policies. i'm not blaming them. they tried to do something reportedly because congress wouldn't do anything. it still doesn't change the fact this what they did yesterday by blaming china in large part has a variety of negative issues associated with it. i had bob heller on today. in his notes he brought up another great point. germany's big growth spurt nervous the 60s and then it levelled off. it was an outrageously aggressive growth spurt. japan had the beginnings of their outrageous growth spurt in the 1970s.

partially in the 80s, and then it levelled off. in the 1990s, he points outs it was south korea and the asian tigers. that was their big-time. well, we've seen china's big-time, and it's leveling off. this isn't something unusual. this is normal. here's the rob. we have pillar number one. of course, this is full employment pillar number two. trade stability. there's nothing on global economics directly, so if you blame china and you say, well, lisp, it's feedback loop hurt pillar number one, it's hurting the economy and unemployment, but we didn't hear much of that. if this is slowing because of the issues that mr. heller pointed out, it's normal. the dollar. remember when the $was off limits to the fed? in the end by blaming china, china is not going to change the glide path very much. did the fed just make that little spot in the corner of the rooem room that much smaller? i think they did. john, back to you. >> thank you, rick.

up next, still watching these markets. los to session highs across the board. looks like the s&p and the nasdaq are at session highs. just the dow is not. pay pal's treaty unit says it's double its total payment volume. year on year. all that, does it add up to a bullish case for pay pal stock? we'll ask the ceo in just a moment. [ male announcer ] whether it takes 200,000 parts, ♪ 800,000 hours of supercomputing time, 3 million lines of code,

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let's talk to the company powering purchases for mobile consumers. bill ready, the ceo of brain tree, and he joins us now. bill, good to see you. >> good to see you as well, john. i was just talking to the ceo of luxury. braintree's customer as well. how has this idea of payments in the background, less hassle for consumers evolved in this app economy right now? it seems paying for things up front perhaps getting even more popular versus paying for things through advertising. >> this is sort of the fundamental bed that braintree made really early several years ago that e-commerce would move to the mobile device, and it

would be a computing device. one of the things we felt is that you have to deliver a seamless push button buying experience. we really were the first to go democatize that. thousands of others have chosen to run. that's why we have amazing growth that we have. hitting $50 million in authorized volume this year. >> i got to ask you about venmo. there was a piece in "slate" taking a look at how people are getting scammed, people trying to sell things are getting scammed on venmo. they say this is for payments between friends, but sometimes people use it for payments that are not just between friends. how important is it for either venmo to change, or maybe change its messaging, be more specific about how that product works so we don't have these stories of scamming that are popping up more and more?

>> well, this is existed as early days of the internet that there's ways to get scammed on-line. we do quite a lot with our customers. we lead the industry with multi-fact drop authorization. it's a big reason why the platform has grown. you're going to have some of these kinds of examples. we protect our consumers from unauthorized use. those kinds of things. it's not for purchases. it's for payments between friends. when people use it for things other than what its stated intent is, they open themselves up to some kind of exposure, and so we're certainly working to be clear with users about what the platform is used for, what it's not. we do quite a lot to go protect those users. like i said, leading the industry with multi-back drop information for every user on the platform. >> a lot of changes coming for payments at the end of this year, whether you are talking emv or samsung pay, android pay, apple pay certainly will have a larger user base to work with

after this weekend. the iphone 6s and 6s plus will be out. how does this at all shift the playing field for braintree and for pay pal as well as more players get into this payment business? >> well, what you really are starting to see is that, you know, we're in the coming of age of the digital wallet. as huge a business as pay pal is, as the world's most widely used custom digital wallet, for the last 15 years digital wallet has been nice to have. as you move to mobile, where people just aren't willing to go enter a lot of information on a tiny little touch screen, consumers are demanding much more seamless experiences and in order to deliver that, you really need to have both a consumer network and a merchant network. that's where we built pay pal one touch, which is delivering huge improvements and conversion rate. as much as 50% or more improvement in conversion on native mobile. we've rolled it out to more than half the internet retailer 500. lots of others are coming into the space. we actually partner with a lot of those players as well.

we're helping to power this coming of age of the digital wallet, certainly with our own brands and pay pal and venmo, and we're one of the largest partners of apple pay and android pay where we powered nearly half the apps on stage behind tim cook at the launch of apple pay, and exactly half the apps at the announcement of android pay. we're playing in that space directly through paypal and venmo and one touch. we're also powering other meaningful digital wallets in the space as well because we think over the next several years it becomes a must have that consumers demand that mobile is their primary computing device, and they'll demand they want to have this seamless buying experience where a great digital wallet. >> all right. bill, lots of exciting news coming in payments. thank you for joining us from braintree. >> absolutely. thanks, john. when we come back, surge pricing is good for you. at least according to uber. we'll explain just ahead. s a fa. s a fa. kind of like shopping hungry equals overshopping.

whyour boss?ork for? yourself? your family? our financial advisors are free to realize a plan to fit your family's unique needs. we'll listen. we'll talk. we'll plan. baird.

at ally bank no branches equals great rates. it's a fact. kind of like mute buttons equal danger. ...that sound good? not being on this phone call sounds good. it's not muted. was that you jason? it was geoffrey! it was jason. it could've been brenda. >> uber is once again just filing its surge pricing to customers. the company just released a study stating they just wouldn't be a reliable service if they didn't implement surge pricing. uber claims it's necessary to insure you can push a button and get a ride even on the busiest

night of the we're. i've always said those who complain about it, obviously don't fly on airplanes or check into hotels. >> i'm done -- i'm not sure i ever really did complain. it's disappointing when it's raining and you hit search pricing. once the consumer gets used to uber, they put enough screens in there saying, hey, here's how much it's going to cost? are you ready? are you ready to pay? okay. here it goes. i think people are used to it now. at leasty oug to be. >> we'll get there eventually. >> meantime, we have yet to mention adobe. 54 cents. beats 50 cents estimate. some executive changes. demand migrating to subscriptions which is what we're looking for. harjins higher. that's one reason it had a good morning. >> that's exactly what they want to happen. they've been trying to condition the street for that move. interesting compared to oracle's move, which was predicated on some similar things. adobe was down after hours. it's bounced back today. i think as people suggest the fact, hey, subscription is working well for them.

they don't have the kind of competition that oracle does. stock is up. >> congratulations to them. have a great weekend, guys. you too, john. for the time being, let's get back to headquarters at the half. all right, guys. welcome to the halftime show. let's meet our starting line-up for today. jim is here along with steechb weiss, john, cnbc senior economics reporter, steve liesman, and joining us as well today at the table is paul richards. he is independent macro strategist. also joe davis is with us. van garde's head of investment strategy group. that firm only has $3 trillion in assets under management. we're happy to have everybody with us today for a game plan that looks like this. now what following the fed's decision on interest rates? how to invest in a world of uncertainty. reid hastings speaks. you'll hear from the netflix ceo this hour, and the best performing stock in the s&p continues its record run.