good morning. it is 10:00 a.m. at dell headquarters in round rock, texas. 11:00 a.m. on wall street. it's "sidewalk alley" live. ♪ ♪

thursday morning. thanks for joining us on "squawk alley." carl is out today, but joining us is john steinburg. the outgoing ceo daily mail north america, we'll talk about your next adventure later. i feel like i need to get you -- we have a pretty good gain this morning. first, let's talk about volkswagen's new ceo getting grilled on capitol hill. eamon javers has the latest. >> brutal is definitely the word to describe this. you can really sense the frustration here as members of congress, they're asking michael honor, the head of volkswagen u.s., about what's going to happen to the thousands of americans who have these volkswagen cars, who have been affected by this emissions sheeting software that volkswagen sur up tissuesly installed in the vehicles. they're also concerned about what happens to vw dealers who have purchased inventory and whether or not they're going to

have any mechanism at all to reimburse those dealers for the damages they are going to suffer. all of this clearly going to cost a lot of money for volkswagen. michael horn saying, though, that the company is going to "make it right." here's what he said a few minutes ago. >> we are determined to make things right. this includes accepting the consequences of our acts, providing a remedy, and restoring the trust of our dealerships, regulators, and the american public. we will rebuild the reputation of a company that more than two million people worldwide, including dealers and supplyists, rely on for their livelihoods. >> guys, not a whole lot of specific detail on exactly what is going to happen. michael horn here saying they're going to work on a timetable for rolling out plans to reimburse or deal with the customers, to deal with those dealers who have been impacted here, but no real specifics just yet, and that's what's got some of these lawmakers on capitol hill frustrated about exactly what's going to happen here going

forward with volkswagen, guys. >> all right. thanks. of course, we'll be continuing to follow, and it's an amazing story. >> let's get to tech news this morning. as reported earlier this morning, dell is in talks to buy data storage product emc. dell's offer would be above $27 a share. by the way, i can't tell you how much because wron. those kind of conversations when you have them with people involved in the deal typically don't go into the greatest form of detail. however, the two companies have been talking about a deal for quite some time, and, in fact, maybe as little as a week away from inking some sort of a transaction. very importantly here, the deal that is being proposed would include dell keeping control of vm wear. right now emc owns 81% to 83%. 81% of vm wear. the deal being proposed would include dell maintaining the control.

it would maintain at least 51%. it would be delivered to emc shareholders. that said the deal that would be struck is the giant leverage buy-out. dell itself is subject to one of the largest leverage buy-outs that has taken place in the last couple of wreerz. back. is it still has a good amount on the balance sheet. it does have significant cash flow to service that debt. that would involve taking on an enormous amount of debt. perhaps $40 billion. i'm told by people familiar with the situation it could include high yield and investment grade offerings in some hybrid fashion from the company. given the combined cash flows and emc and dell, it would be able to support it, but the leverage ratio would be pretty high. you certainly also have to wonder where the price will come in had and what kind of swroks, if any, will be raised by emc shareholders. we will see and we'll talk more

about that, but right now i want to get to andrew sorkin with breaking news. andrew, i'm all atwitter. what is it? >> we have an extraordinary lawsuit that's just been filed by bill gross. of course, the founder of pimco that was ousteded from his own company. he is now suing pimco in a remarkable lawsuit that was just filed moments ago in california. gross is seeking no less than $200 million in damages which he says he will donate to charity. he is alleging what he calls constructive termination, a breach of written contract, breach of covenant of good faith and fair dealing. i have been going through the lawsuit now. it is an unbelievable story. almost reads like a murder mystery. he says "driven by a lust for power, greed, and a desire to improve their own financial position and reputation of at the expense of investors and

decency. a kabal, he calls them, of managing director's plotting to drive founder bill gross out of pemco in order to take without compensation gross's percentage of ownership in the profitability of pimco. there are proper dishonest and unethical behavior must now be exposed and then it goes on for pages to expose some of these issues that he has. as you go through this lawsuit, he talks about his conflict with mohammed el arian that, of course, left pimco and created a huge publicity around that. in the lawsuit he says mr. gross urged the executive committee to either immediately fully terminate el arian, or at least deny him a portion of his $50 million bonus for the first quarter of 2000. it goes through the numbers for

the first time that i think we've seen them publicly. at least publicly confirmed. we should tell you, back in 2013 it says mr. gross is entitled to receive 20% of the entire profit-sharing pool at pimco. thus, in 2013 of the $1.3 billion, mr. gross received $300 million over the course of that we're. it says in the lawsuit that for 2014, the we're in which he left, the year in which he is now asking for at least $200 million, that mr. gross is on track to receive a bonus in excess of $250 million. i should gas station on to say, he says at the time they were trying to oust him, they said that mr. gross could not agree to participate. he claimed that there was a deceit going on. did not agree to participate in this deceit on investors and the public by accepting the so-called offer of his infected termination as a result he was forced out of the company, and it was over 40 years. there are all sorts of other

allegations in here about clandestine meetings and managing partners and directors at pimco that were trying to get rid of him, including calls and leaks to the media. he specifically goes after andrew balls, who is now one of the co-investment professionals there. they go through a sequence that they say they discovered that andrew balls had been calling the financial times and at one point the "wall street journal", and they actually apparently went and found telephone records and found a little used cell phone that they say was issued to balls. at least this was what gross is claiming. it's remarkable turn of events. he is now at swrjanis. he cares as much about his reputation as anything else. it's going put more pressure, of course, on pimco, but -- we thought mr. gross was turning

the page. the page has want been turned. >> we know, of course, we haven't heard of pimco. >> this was just moments ago. we'll be reaching out to pimco. allianz is also a defendant in this lawsuit, and we'll be reaching out to mohammed alarian and others named in this suit. >> thank you for that breaking news. andrew ross sorkin. next up alibaba seeking to reassure investors after the slowdown in china coupled with, of course, what has been a struggling stock price for alibaba. he writes in a letter recently signals china's economic slowdown have industryingered widespread concern, and i believe overreaction around the world. i believe that for the future the advantages in the slowdown of the economic prospects far wrout weigh the disadvantages. china's economic twomt is no longer in need of increasing its numbers, but of increasing its

quality. speaking of quality, this letter is a reversal from last quarter. last quarter he said because so many are disposable skuktive guys alibab ais insulated. he says they're not. they're more closely tried to the economy. western economies are good at spending the money. they believe they will earn in the future. he is saying the chinese save too much money. he wants them all to get credit cards, eeg. >> i assume you read the entire letter. >> yes. >> of course, we can all try and figure out why now. >> yes. radio why he decided to write this. what is your sense having read the entire letter and gone through not just the personal -- >> i take it at face value. he says in the beginning our business is not really well known by most of our investors because the products are not available outside of china. i think he does want to communicate. he does want to put his words out there, and i think he can no longer deny the exposure to the chinese economy. >> that sounds like the chip on his shoulder of a company who made a very deliberate decision to list its company in the

united states for stock ownership and structural reasons rather than listing in the chinese market. the letter is interesting because he talks about the -- they need to be focused on the quality of the chinese economy. not necessarily the numbers. i believe we still have john with us. jim cramer's point this morning was you can make that point if you are hitting your quarterly earnings. you can talk about the macroenvironment so long as you are hitting the numbers that are you putting out for us, and they're simply not doing that. >> yeah. it's awfully difficult to try to recover from this perception position where alibaba started out. they came out of the gate with this huge ipo and looked invincible, and now there are all these doubts. what struck me about this letter is that he goes through and combines a lot of the comments that he has been making in public statements over the past several weeks about the chinese being savers and, therefore, in an economic slowdown, it won't necessarily affect the rate of spending of their customer base at the same time.

this seems to be rooted in an idea that investors just don't understand alibaba's business. i'm not sure this letter itself takes care of that. >> of course well, do know from him that there will be 500 million middle class people in china in the next ten years, which, john, i mean, goes to the central theme people do invest still in this stock. i mean, it is still the best way to play the rising middle class. >> there are elements of google founder type language in this letter as well talking about a need for creativity and innovation in the population beyond just being consumers. there's a lot of themes in there as well, and ultimately, he does come out and say you can only expect 5% growth. we're not going to go above 5% growth to get ourselves -- >> yes, yes. you know, these are big statements for him to make about the overall economy when he has been relatively silent so far. >> i think that 5% number won't do much to comfort investors who want to think of china as not being dramatically in a slowdown right now. it's hard to deny that.

we'll certainly see what happens to alibaba. before we go, we mentioned this at the top of the hour. some new adventures coming up for you. >> an amazing period of time. we double direct advertising while i was there, which was the advertising we sell for people wrum advertisers. great investments. we did the acquisition of elite daily, and i'm going to take some time and figure out what's next. i hi ultimately the road will lead to me doing my own thing, but i'm going to take some time and explore. >> i have held the same job for a very long time. >> yes. >> in that time i've known you, you have held many jobs. >> yes, i have, david. >> why are you so -- >> well, first of all, david, i think that maybe you have been in the same job too long, and the other thing i would say is, well, for me -- >> i didn't even -- >> 18 months in my industry is like half a decade in any other industry, and in the steinburg week there are nine days. that's the other reason why. a lot happens wrrch the industry changes dramatically in a year

to 18 months. it just does. >> you have moved accordingly. >> i have. >> i was at buzz feed for four years. that's a substantial period in the start-up ecosystem as well, and i was at google before that, and, look, different roads for different people, i guess. >> part of your tenure at daily mail is in doing a bunch of deals. starting truffle, bag elite daily. what happens to the deals once they leave? >> they continue on and they're thriving. daily mail is crushing. trufle is closing business. we're proud of the partnership with snap chat, and the company is going to focus on organic growth and fostering those assets. there's a bright future ahead. >> you should come back here. >> no matter what job you hold or what you are doing, you'll always be here. >> i'm going to come here as long as the phone keeps ringing to me. as long as they ring me, i'm coming here. >> we might even see more of you. >> i'll take your recommendat n recommendation. >> i got very angry phone calls from the bosses, i'm sure. >> that's your agent on line

two. >> john steinburg, great to see you. it's going to have a quick check on the markets chshgs are roughly flat. dow down 30 points. jobless claims. markets cautious ahead of those fed minutes coming out at 2:00 p.m. eastern time. you can see we're in negative territory, albeit slightly across the board. some of the most powerful leaders in mobile speaking at recode's conference. let's go live there for highlights. roku with a brand new streaming device. anthony wood breaks it down in his cnbc exclusive. as we go to break, check out go pro, hitting a new al-time low yesterday. it was down 9% falling again 5.5% this morning. $27.70 on that stock.

welcome brashing the second annual code mobile conference isunder way in half-moon bay, california, down the road, and they're tackling mobility in autos, tackle, wearables and more. our julia borstein has more. julia. >> that's right, swron. we spoke exclusively with host, the ceo of swrau bone. he tells us he does not think that his fitness bands are threatened by the apple watch, but, wear rather, that he expects his software to be what smart watches use for their fitness tracking.

you talked about the challenges of taking his private company public. >> we're thinking about the long-term view versus i think one of the challenges we have going public is you have to manage a certain quarterly cycle, and it's difficult. you don't fwet to do a lot of the the long-term thinking. >> at&t mobility ceo glen lurry took a swipe at the government calling the s.e.c.'s expectations of how much money it will raise from a coming spectrum option way off base. >> i think there's lots of good things going around. i think the government has thrown out $60 billion of opportunity. we don't think that's real. we just don't think that's possible. >> tonight's lowsing speaker is sec commissioner jessica rosemore. we'll have to see how she responds to his comments. it's, of course, a very packed schedule here at code mobile today. coming up on "power lunch" we'll have an exclusive interview with

erickson ceo and then in "closing bell owe "with facebook's messaging team. >> thanks, swrul wra. in beautiful hatch moon bay. speaking to you a little later on. >> more cracks in the ipo market apparently. cpi was set to go public at the nasdaq today, but this morning the company pulled its ipo telling cnbc in a statement "due to heightened volatility in the market, cpi's ipo did not price as close to the offer as originally planned. we will continue discussions with investors and will provide further updates as appropriate. we are working with our underwriters with an expected close of today. meanwhile, according to renaissance capital in the last two weeks, nine companies have successfully gone public. eight have delayed or postponed those ipo's, and one has been canceled. of the companies that went public, some 89% priced below

the range. only pure storage priced at the midpoint and that didn't go so well for that company. it fell about 6% on its debut yesterday. currently it is still trying to hang in there, but a cpi is able to price tonight, it's expected to come in below its proposed range. of course, we're still expecting two monster ipo's next week. albertson's and first data, and we will see, of course, whether there's investor appetite for billions of dollars in stock for just those two companies. for more on the ipo market, let's bring in henry, ceo at business insider. henry, what do you make of this environment? companies are looking at all of these names pricing below the range and saying if this is in my role, i'm going to hold off. unfortunately for tech companies that want to go public, it's not going to be as easy, and there

have been incredibly high private market valuations mradzed on a lot of these companies in silicon valley and elsewhere with the premise that eventually there's going to be an exit at a higher level in the ipo market. now it looks like the ipo market hey weaken where you get a lot more price sensitivity. >> is there a sense that company's expectations are too high or too stubborn, the fact that they're not willing to take a valuation that's just slightly lower. >> certainly you do see that. companies embrace what they think they're going to get and then there's a big discussion right at the pricing call, is that enough? should we go forward? sometimes the right answer is to go forward. sometimes it isn't. when you have ipo's fall, like pure storage yesterday, which is a good company, a lot of expectation in silicon valley. then it's going to make investors even more sensitive next time. they're not going to take it for whatever the price is. they're going to be very clear about what they will pay. it dampens the excitement very quickly. >> this persists, then what is the impact on venture capital on

those companies obviously that have done roundup to round with the where the of becoming public. >> ipo markets are always cyclical. then you have no ipo's for a long time. we may be headed into a period where it's very hard to go public. venture capitalists and others will have to hold for longer and build for longer. that will have a dampening effect. there's no question on value wigs withes in the private market. that said, silicon valley especially has gone a long way towards developing what really is a permanent private market where companies don't really have to go public anymore except when they get to an incredibly large scale. >> your next round might not be up as much. >> the terms have already started to come down three or four months ago. saying just get me in. whatever the price. whatever the terms. now i'm hearing the terms are much stricter. you're getting liquidation preferences with guaranteed returns and preferred stock. it's already starting to tighten up. >> you could compare the environment we are in now to the

environment earlier this year which many people would have said is a very healthy, very friendly market for ipo's. the swrort of companies that have gone public this year are trading below their ipo price. that's not good for employee morale. that's not good for other companies that are looking to go public. >> the silver lining there is a lot of companies went public at very high valuations and are still trading at very reasonable valuations even though they are down. yes, to the ebbing tent that we all celebrate stocks just going up and people are going to get worried about stocks being down, moshal shouldn't. companies could still be doing a great thing. it will have a dampening effect. >> next week we've got the -- you mentioned, of course, but those are more deleveraging. private equity deals, coming back to the market. non how those will be received. i know you have been following sort of generally this part of the kaplan market pretty closely. do we have any sense as to whether that's better than a growth story? >> well, the advisors would argue that they are already being priced at what they would consider a conservative multiple, and that investors

have been anticipating them for quite some time. these are processes that have been run by their private equity sponsors. they've been years in the making. they're not ones to be deterred by a vix that hes a little higher or demand that's a little softer. it is, henry, five plus billion dollars of stock for two companies being sold and there is this perception that while other companies are saying we're not comfortable with the valuation or the demand or the price, that the companies that are going out now don't have a choice. they have to. >> absolutely. investors then will leverage shifts to them a little bit and say, look, we might do it at 13 instead of 15. we're not going to sit here and watch ourselves lose money overnight when you have pricing control. it's just -- we're going to get into an environment very likely where there's a lot more pricing discipline, and we argue that's very healthy for the investor side. >> first data, of course, is an aged lbo at this point. it's been private for a long time. much longer than they may have thought. in terms of the growth story, is there a concern overall about the actual fundamentals of these

businesses right now that is therefore being reflected appropriately by the unwillingness of some investors to pay up. >> in some cases, absolutely. we look at gopro. one of the reasons the stock has been hammered is the new camera. morgan stanley said yesterday it's not selling as well. people are realizing, hey, this is a hardware company. a few months ago when the growth was spectacular people are saying, well, it's wreed, it's something more than that. so far and so forth. we're going to get because of the growth rate growing, you are starting to get more pricing discipline. again. 15.81. an unprofitable company. you had argued very high growth. there should be demand. we'll see how. >> it's still a health where i valuation. it's not an automatic 50% pop for pressing by, and the moment

that stops happening, people get a lot more careful. >> of course, the big story is next week we'll see how it turns up and, henry, thanks for joining us. >> thank you for having us. >> henry, business insider. >> all right. let's bring in simon hobbs as we go down to the close of the u.k. and across continental europe. >> hey, david. we make gains on western european stock markets through the session. it's not huge, but we have made gains. a bit of a fright in the start when we got notice that german exports plunged in august. that may have a lot to do with holiday timing.

>> it's also reporting that the capital increase will come in the next couple of weeks. this is already in the market. most people think it will be about $5 billion on a $41 billion market cap. you can see chris suisse is down. deutsche bank having unveiled that $6 billion write-down. also negative, though, not perhaps as much as you would expect gin what they're also saying about the dividend. chrysler is higher. this may have to do with the ferrari or the labor talks in this country. do want to mention quickly, though, there's been profit taking today on what's been an amazing surge on some of the nordic energy plays. i mean, statoil is up. seadrill, an engineer up 30%. top gainer today actually more

from lufthansa. it was rbc that upgradeded the swrerman airline to equal weight, market weight from an underperform rating. stock up 4%. it is a quiet day. back to you. >> thanks very much, simon. up next, today marks the end of the first week of a major medical billing overhaul in the u.s. how do health insurers handling those changes. we're going to ask athena ceo jonathan bush. that's up next on squawk alley. s suffering from ringing in their ears, there's no such thing as quiet time. but you can quiet the ringing with lipo-flavonoid, the number-one doctor-recommended brand. relieve the ringing with lipo-flavonoid.

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good morning. i'm sue herrera. bond guru bill gross suing pimco for at least $200 million claiming he was wrongfully ousted by a cabal of executives that wanted his share of the bonus pool. he left pimco to join janice capital. fifa president sepp blater and his successor were suspended for 90 days in the wake of the swiss criminal investigation. he will not be a candidate in the february election for president. syria's armed forces chief of staff says that the military has started an offensive to take back towns and villages. the deposit beginning its offensive with the backing of russian air strikes.

in the meantime, russian president vladimir putin celebrating his 63rd birthday playing in a star-studded hockey game. former nhl players against russian official and tycoons. putin scored seven goals to take to a 15-10 victory and afterwards he received a trophy and a metal for his contribution to hockey in russia. that's our cnbc news wrupt this hour. back to you, guys. i doubt anybody would really block mr. putin's goals anyway. >> no. no. still, impressive performance. thanks, sue. one of the biggest national technology overhauls since y2k. on october 1st the nation's health system switched to a brand new medical coding format called icd 10. bertha coombs is live with a look at how it's going one week after launch. over to you. >> doctors have been worried about. much like y2k. they worried there would be lots of glitches.

the entire health system, every provider, every insurer switching to the new coding system that expands diagnostic codes and billing codes five fold from what we've seen over the last 30 years. here at athena health, they helped process for doctor groups and individual doctors. they've already processed more than 1.25 million claims. swron than bush, the ceo, joins me now. jonathan, the question is how is it going? thank you, humana. they paid the first lame in one day. it was for lobach pain and insomnia, which we know and will refer to as m-545 and g7000. >> you have already processed one and a quarter million. 6,000 have been paid. a lot of folks worried that there were going to be a lot of

delays. have you seen any glitches? >> no. documents that we monitor everything that goes on in our 70,000 doctors offices, and we saw a small wrup tick from, you know, on average of 5.3 days -- minutes of documentation time on icd 10. it went up to six minutes per patient. as they say in the war room, we have 99 problems. z 63 .081. >> that's what people are wearing on the back of their shirts. basically every single thing now has a code. the weird ones now that include things like getting burned while water skiing. >> oh, yes. >> the second -- there's a particularly good one. i wish i knew the number. it's the second time you get

sucked into a jet engine. >> you have a few. >> once that second time you go sfwu the jet engine, you -- >> you have processed a few that include apparently people having fallen from a jungle gym, falling through the floor . >> we had a lot of doctors on the enl. getting them on the health care intpt. we said, look, if you switch now we will make you whole if this doesn't work, and that got them comfortable. for a lot of these regulatory sort of mandates with icb 10, but also meaningful use and the obama care rules, make it really hard to be a doctor, and we want to provide the safety net for them that they need.

>> and there are more changes ahead just this week. you've been meeting with -- >> yes. >> the head of the nation's health i.t. now the next thing is to make sure all these systems work with one another. >> that's right. inoperatability is really our next frontier. secretary desalvo is here. she's got a road map. they are moving along. we've gone from two major hospitals sharing their hearts to 30, and we could be in the thousands in the next few months as hospitals and their i.t. companies come around. this is kind of neat. >> it is. jonathan bush, thanks. >> it's a pleasure. thank you, guys. >> thanks for letting us hang out. guys, we are hearing from a lot of payers and a lot of other i.t. companies that things are going smoothly.

week one so far. it looks a lot like y2k, but it's early. >> thanks so much for sorting through what is a very complicated story. we appreciate it. bertha with athena health. coming up, more on dell's move to buy emc, but, first, rick santelli. what's on your mind today? >> well, we have the 16, 17 meeting, but in my world i think it's more of the evaporation of normalization, and after the break we're going to look inside the fed toolbox. especially to see if we can measure what's going to be happening next. after the break.

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i have a lifetime of experience. so i know how important that is. coming up on the halftime show with the dow on pace for its best week in eight months, is the correction now over, or will earnings season send stocks sinking again? plus, big food stocks on the move today. our desk will tell you who will serve up gains and who could give you indigestion, and go pro hitting an all-time low. morgan stanley really slashz its price target. we'll talk about that as well. david, we'll see you in 20 minutes or so. >> scott, thanks very much. looking forward to the halftime report. let's get back to one of the big stories this morning. that is dell, of course, as we reported talks to buy the data storage company, emc. a price will be above $27. although how much bottom of, it's unclear at this point. structure, well, it does appear it's going to be a purchase of the entire company. including much of its stake in vm wear. at least enough so that dell will control vm wear. this will be an enormously levered deal. it will require enormous

borrowing in the credit markets. i will turn to john on the strategic merritts of said deal. we can talk about the economic considerations. >> you are expected to see top line growth. we'll see it if that ends up realizing. emc is a top tier player in storage. emc has rsa, and that's a big security play, and that doesn't get the attention that, of course, emc and rsa think it ought to. then, of course, you've got that stake in vm wear, which includes assets like air watch, which are

in mobile management. dell faces this threat from the cloud. they say that they provide a lot of equipment from the cloud, and heats true. what we are hearing from amazon is certainly an argument for dell's traditional customers not to buy equipment from dell, but to buy it from amazon. vm wear faces similar threats from the open source community. you got customers like apple that look like they're switching off of vm wear. looking at other options. one could argue that emc is in a better position to face those kind of threats if they were to go private, but, of course, investors are probably going to be aware of the fact the 52-week high on that stock is above $30 a share, so it's hard to believe that they would be satisfied with $27. hey, now michael dell has experience making these kind of pitches to investor bases.

they would maintain control. a big check would be need to be written by silver lake and the big borrowings in the capital markets. when you are talking $40 billion, i don't care if it's investment grade or high yield or some combination-that's enormous amount of money for them to try to borrow. >> of course, you still have dell with a lot of debt of its own, from its own leverage buy-out. you have to wonder putting that much debt on a combined company when the business cycle could change, the competitive landscape could change, how much of a risk is that for a

pro-forma em. >> if are you cashing out the share hold efrz, it's not their risk anyhor. it does fall to dell. that is mr. dell. silver lake. any other partners they may have in there. they may get something done as soon as a week, but to john's point, once we see it in print, we'll see whether shareholders will want to go along. there will be a vote. >> we will see. >> i know we have to move on, but -- >> go ahead, john. >> how ironic -- how ironic is it to see dell private trying to get bigger at the same time we're seeing hp get small. >> thank you. we're going to get to the 16th, 17th meeting, and many were expecting rates to increase. maybe the timing was wrong. it's not a question so much of whether zero interest rate policy is out lived its

usefulness. i think there's very large agreement on that. whether it was japan or germany on the soft side. granted that the u.s. is still probably doing a bit better. weave had our own issues like ism and some of the regional fed surveys. in the end what it really boils down to is i don't think we're going to see normalization. i'm pretty sure that chapter may be closed. now, of course, the october meeting is still in the communications. december potential. down here where you have dollar futures the short rate not the currency. all the treasury futures. the end of the yeek known as the turn always has its own littany of issues and it would be hard for me to imagine the fed trying to complicate that in a time where countries like china sur service says dollar debt, all these things in culmination with the closing of books made things messy.

this is euro rates. this is swiss rates. now, i'm not talking bills withdrawal. they're two year minus 25. you can see negative down to minus one basis point in the five year and euro zone. look at the swiss rate. of course, this is a bigger small negative than this. it still is positive sloping. the answer is obvious. what's the next move for the u.s.? well, they don't really have many, do they? they can continue to use things like communications and dots. in the end here is what is asked. negative interest rates and quantity takive easing. negative interest rates and quantity takive easing. maybe europe could get used to this dynamic. maybe investors and large institutions don't have a problem with safe harbor money, having a little interest loss associated with it. what about money market funds.

>> twhas we may be looking at down the road. david faber, back to you. >> thank you very much, rick santelli. all right. up next we'll have an exclusive interview with the ceo of roku on the brand new box and the future of streaming. we'll be right back. your car ine premium like clockwork. month after month. year after year. then one night, you hydroplane into a ditch. yeah... surprise... your insurance company tells you to pay up again. why pay for insurance if you have to pay even more for using it? if you have liberty mutual deductible fund™,

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♪ sleep train ♪ your ticket to a better night's sleep ♪ welcome back. i'm meg terrell. big news on its multiple sclerosis drug that's in the pipeline saying it not only outperformed more common drug in the most common form of the disease, but it also is the first to show a benefit for a less common form of multiple sclerosis. we talked with dan o'day, an exclusive interview. take a listen. >> for decades we've tried different medicines to treat this primary progressive form of the disease and nothing has worked. this is the first medicine to show an affect to significantly reduce the progression for patients with primary progresssive multiple sclerosis. we're very excited about the benefit that that could bring to patients. >> not only a potential new

treatment for the most common form of the disease, where there are a lot of drugs on the market. this could also owe teshlly affect them in a competitive land scape and it's the first for this underserved patient population. big news. back to you. >> yes, indeed. meg terrell, thanks so much. moving on to entertainment, streaming company roku out with its latest product. the roku 4. a lot of consumers to stream including adding remote finder feature for quality programming. not yet widely available. shows in the new format. anthony wood is the ceo of roku, and joins us now. anthony, lots of features. not only packed into the box, but also a new mobile app that you have out of all the stuff that you are offering. faster wifi. the mobile app. you came out with a new version of orku wrerl. what do you expect to appeal most -- to most consumers with this update? >> well, of course, the roku 4

is the best streaming player ever with the remote finder. you lose your remote. you press a button, and it beeps. can you program the ring tones. that's kind of fun. the biggest part and, of course, 4k which is growing in popularity, and this is the future of television, and increasingly many tvs over, say, 40 inches are 4k tvs. 4k is interesting because it's one of the first streaming form yats or one of the first video formats that will be delivered primarily by streaming. people want 4k streaming, it's by far the best to get the 4k content. the roku os 7 that's os for tvs, that's the software that i think is the future operating system for tv. that's going to roll out all of our customers to the millions of roku boxes to our tvs and partners. it has a lot of new features. i think one of the moesz exciting things that we've built into rokuos 7 is notifications of content you're interested in. of course, we have an app store, and there are thousands of apps on roku now.

with that much content, it's hard for customers to find the shows that they want to watch. now with roku os 7, you can follow actors movies and then get notifications when those tv shows are available. that's i think better ways to find and discover content you want. >> anthony, how much business do you get through amazon, and what impact do you expect from them ceasing to sell apple tv and google chrome cast? of course, they're keeping roku because you do stream amazon prime in some video content? >> yeah. amazon is a great product. it's a very popular app on roku. we're a very big great partner with amazon. they're a big partner of ours. they sell our products, obviously, on their website, and, of course, we sell a lot of amazon movies through the amazon app on roku. you know, they're a big partner. they're an important retailer. our biggest retailer by far is

wal-mart. >> okay. so you expect the impact to be limited then of them taking those competitors of yours essentially out of they are store? >> i think it will help our sales a little bit, but, you know, in terms of our players, i mean, but, you know, in terms of the future of roku streaming players are one part of how we distribute our operating system, but really the fastest growing segment for us is roku tv. these are tvs that have roku os built into the tv. they have a home screen. they're a modern tv. we have five different companies selling over 25 models of roku tv, and that's where we're putting a lot of our effort these days. >> all right. ceo of roku on your new 4k streaming box. thanks so much. >> thank you. up next, johnny also none too happy with the newest steve jobs movie. more on what he had to say in just a moment.

>> take a look at shares of ebay because they are down sharply. this on a report from channel advisor. it's an independent firm that is estimating that same-store sales for the company were only up

1.1%. i believe it was for september, kayla, from -- incorrect. >> it if 1.1% is correct, it boo appear to be a slowdown between august and september. >> right. we had yet from ebay. we don't necessarily expect to. john, do you have any take. i think based on an independent report. when you get those two things together, it might shake investor confidence. >> take a look at et ceteray as well. if we could pull that up question. etsy down 5%, of course. amazon -- it's expected to be a competitor is launching this week. we will see exactly how that

plays out. certainly interesting to watch that. meanwhile, ibm has taken the dow positive as we head into midday. dow currently up about 25 points in a reversal on that average. that is it for us on "squawk alley." thanks for being here. thanks to john out west. let's send it over to the judge who is back from jury duty. >> trade lerz serve up their winers and losers just ahead as well. gaming the numbers. the sectors likely to hit and miss. what all of that will mean to your money. we begin with stocks on a