"squawk alley" is live. ♪ welcome to "squawk alley" this thursday, and jon fortt and kayla and harry blodgett this hour, and founder and insider, and it is great to have you this morning. and now, a slip of guidance after the earnings come in below guidance, and the earnings did top expectations burk plenty more earnings on tap with microso

microsoft, and google's parent company alphabet reporting after the the bell, and henry, microsoft is out with 5% of reclaiming the december '99 highs, and the value that intel wishes. >> yes, the stock was in the tank for a decade, but a new ceo reinvigorated everything, and the cloud business is growing, and it is clear that they can make the transition with some of the products and maybe not all of them, but the question is how fast can they grow from here. >> and we were asking if the honeymoon period could extend itself with the new ceo, and the same with google? >> well, everybody wants to know about how much growth is left in the core business a and this is a tremendously huge business, and a huge percentage of the advertising dollars are disappearing into it, and it is going to slow into the low rate, and the question is what replaces it, and youtube is a big opportunity, and growing rapidly, and the tv money could flow in there, but other than

that, basically, don't blow too much money on the little bets on the side. >> and that question was a nice slider that you threw at him, and you went ruth porin at the end, and he went, whoa! and now, the reason that it is 5% of the '9 # hi9 high is becaf the valuation. and we were talked and it weeks ago, and ta did nhey did not be that the cloud story would be the story that the investors have, and that is why the quarter is not going to be interest interesting for microsoft, and given what intel told us yesterday about the state of the pc saying that essentially, we won't invest in the low end, and even very much into the low end of the pc range, and the growth is at the high end, and we will migrate down, and what happens to microsoft, and have they diversified their portfolio through the windows server and

the sea change happening right now in the market? >> yes, as microsoft moves to the cloud, some of the applications will be working well across the platform, the smartphones, and et cetera, and that is not as dependent on the pced, but there is money in windows, but not sure of the future of that. >> and are you impressed with the earn gts -- earnings or the bar set so low? >> well, everybody is so good at managing the expectations down, and then the beating the expectations, and the business is just declining at a shocking rate, and yet you look it, and beat expectations, and everybody is happy. >> the silver lining on qualcomm is china's expectations, because the lt in china is continuing to drive the business for them, tan smartphones are driven, and the premium tier ist not what you would hope, and that is in contrast to what intel said

about the pc business, and so it is not a one size fits all in china in the tech. >> and now, the new piece in "vanity fair" says that silicon valley created donald trump, and they say that his rise would not have been so great without social media, and now they want to stop it. it is interesting setup, and nick, what do you think of that? >> that is a ludicrous, ludicrous assertion, and what created trump is the huge inequality of the people in the country, and people are frustrated with the e kconomy. and we need to pay people more and instead of focusing on the bottom line, and the shareholders and that, and that is what created trump. he uses social media very well, but he would have used the traditional media very well, and it is not the fact that he has the ability to tweet here creates it, but one thing that nick does say and is a profound observation is that silicon

valley does not appreciate what these platforms can and will be used for, and including the heinous stuff that is posted on the youtube, and twitter is used for and facebook is more controlled because it has real names, but even more so. >> and while you are talking, viacom and dish have renewed the carriage pact in a multi year deal, and some viacom deals will be carried via sling tv, and as soon as we get the details on that, we will bring them to you. finally, "time" magazine releasing the influential list. mark zuckerberg, and a cover, and other tech names making the list, tim cook, and san ddar picci, and i thought it was

light, but more on politicians and entertainers. >> yes, it is wone to talk abou for so long, because we talk about the facebook, but if you take a step back and you think about these young parents, entrepreneurs and the multi billionaires who have decided to use the wealth, and convert it early into influence. and what type of influence they decide to have on the global stage, and health care, and influencing education is going to have enormous implications. >> so great to see it celebrated. remember, when they announced it, it was going to be skepticism and for-profit companies, and donation, and all of the quibbling about it, and it is celebrated for what it is, and it is in part a burgeoning new movement where we are talking about stakeholders in the economy rather than just shareholders, and now, always talking about it in the sales

forc force, we have to serve more than the shareholder, and great companies do it, and it is w wonderful the see mark zuckerberg and the wife saying, yes, to the economy and the future. >> and it seems that the spotlight was taken slightly off tof the politicians, and the central bankers which previously got the higher spots in the "time" magazine 100, and the christine lagarde did get a cover, but is there a difference in the way that we are focussing in the u.s.? >> well, there is a gradual recove recovery, and the central banks not doing so much, and it is nice to focus on the real econo economy, and the real products, and christine lagarde is a surprise, and most americans probably have no idea who she is. >> that is probably true, but with certainly do. and looking for granularity on this, david faber is joining us from post 9 to tell us what he knows. >> yes, obviously earlier on the "squawk on the street" we said to expect a deal, and we got it.

a long term carriage agreement in some doubts, and concerning the shareholders of viacom no doubt give n the volatility tha we saw earlier in the week with the stock. but people familiar with the deal tell me that it is maybe as long as five, and call it between four and five, but closer to five, and includes the carriage on the sling tv, the streaming service that dish has introduced over the last years to have different bundles of programs so that viacom's channel channels, nickelodeon, and b.e.t. and other channels will be included in those bundles, and also important milestone for viac viacom, because there is concern that it would not be able to carry the day here with a man who is known as the extraordinarily difficult can knee goschiator charlesergan the ceo of dish, and he is willing to watch the channels go dark, and replace them, and some strong language from him in the last year, and we call it over the conference calls, but

yesterday, a conciliatory deal, and he could not help himself, and went into some of the details off why he does not believe that those networks are not nearly as strong as they once were, but viacom, directv, and charter and so they have done some big deals behind the company, and now they need people to watch those networks in question, and develop more of the digital franchises they need, but it is an important milestone for them no doubt about it. >> and no doubt, henry, peel are go ing -- people will be dragged into it kicking and screaming. >> and the observation is the key, you have to get the people watching the channels. >> do you have sense of whether it is a good deal for viacom? >> well, this is important for the people who follow the company, it is going to allow them to say that they will have mid-single digit affiliate fee increases. so that the guidance is going to

be continue to be for the mid-single digit affiliate fee increases. so if this were the other way, they could not offer guidance in the mid-single digit increases, and so they are not sharing the economic terms specifically, but i think it is fair to say that there are some increases in it, and these things include so many parts and moving parts including sling carriage as well. it is difficult to figure out who is getting the better deal. >> and what does it say about the future of networks and how long do you expect it to continue? you talk to the people in the cable industry, and nobody thinks it is going to be lasting forever, and we have to cash it in, and last for five years, which is good, but might have been better. >> yes, might have been, but the underlying question, how many people are going to be subscribing to the bundle or turning off the video feed and only going broadband and

therefore going over the top? i mean, all of the agreements are based on the subscriber numbers which keep coming down, but not sharply, so that is the big question. are they going to be signing up the deals? it aper peers they r and those who thought that the bounce of p power is moving more firmly towards the distributors in a way, and you have to wonder if the content is still not king as the former chairman and the still largest shareholder said a few years ago. >> and viacom reacting to the news that they were locked in the news, and reaching the pact, you would any that the distributor would have more leverage in the situation. >> there was a lot of belief, kayla, that dish was going to -- i mean, they have been fighting a war of words here for a long time. and charliergan started to talk about the deal in 2014, and questioning the validity of those networks, and they have have done nothing to dissuade it

as they have seen the ratings come down, and in this case viacom got what it wanted and it got key distribution with the key partner, and have mid-single digit after fid yat increases, and so we are content, and we can say it is victory for the content guys. put it that way. >> rt. >> henry, great to see you here. meanwhile, the markets are mixed right now, and the dow is being dragged down by verizon, and travelers is knocking 35 points off of there and of course, they are reporting earnings this morning, and the s&p 500 is making up some lost ground and close to the flatline, but the nasdaq is positive by 12 points. united continental shares are falling after down beaten earnings, taand the stock is do 9%, and american express is rallying afterf that companyt beat expectations, and also beat on the revenue cardholder spendings, and the big news, carl is that they were able to

the reaffirm the guidance this year, and next year, and the stock is up currently 1%. >> and when we come back, in pennsylvania, the primaries that could go on settling the democratic and the other nominations. a hillary supporter is going to join us live. and martin scorcese and robert de niro is reuniting for the showing of "taxi driver" and jane fonda, the co-found over the festival is going to join us. and we will talk to one company owho is bringing virtual reality to one major league baseball park. join us. you shouldn't have to go far

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check out the shares of apple moving lower this morning, and now officially back in the bear market territory, and the stock is currently at $106.32 and up slight areally for the year, and the company has delayed the earnings untul tuesday the 26th so the executives can attend the memorial for the long term board member joe campbell. meanwhile, donald trump is sitting down for a town hall this morning on the "today" show, and he says that he is a better candidate for women than the frontrunner hillary clinton. >> there is nobody who respects women more than i do. and there is nobody who will

take care of women's health issues better than i will, and hillary does not do it, and she does not have the strength or the energy and she will not be able to do it. >> and as we look ahead to next week's pennsylvania primary, and joining us from washington is senator bob casey a democrat backing hillary clinton. and we have seen the polls, and trump and hillary clinton are both in the lead, but pennsylvania has been a left leaning swing state and how close do you believe it is going to be sh >> well, it is hard to be certain, but i believe that hillary has a strong foundation in pennsylvania by way of the work and the campaigning there this year and 2008, and president clinton's record in office helps as well. but a lot of the people in our state have seen what the nation has seen which is someone who is basically concerned about basic concern concerns and issues and bayic specific plans of how the raise

the incomes and get more people in the middle-class to knock down the barriers of having women succeed into the middle-class and equal pay for equal work, and other strategies that hillary has set forth in her campaign. >> there is a lot of attention, senator, shift iing towards the gop side, and an extremely complicated delegate system where pretty much it is anyone's guess, and regardless of who wins the primary, and how many of those delegates will vote come convention tomb. how do you expect that to play out? >> well, it is complicated and because it is a republican proce process, i'm not sure i am qualified to try to interpret it. but we will see, and look, it appears to me when you look at the republican side that donald trump has a lot of support in pennsylvania, but i'm very confident that in a general election matchup in pennsylvania, secretary clinton versus donald trump, and i

believe she would win, but it has to be of course predicated on a lot of hard work that we do to get a good win on tuesday in the primary and then to prepare for between the time period tuesday al of the way to election day in november, and she has a very strong base in pennsylvania. i think that she could get the votes of some in a general election some conservative democrats that at lot of the democrats have not gotten in many, many years. >> senator, pennsylvania in my recollection tends to bring out the main street economic issues, and some blue collar economic issues, and looking at the polling, bernie sanders has risen in mid-november to the mid-40s with a populist economic message and what is the takeaway for hillary clinton if she secures the democratic nomination to allow her to do better with that main street economic message than she has done in the primary season? >> well, because she has a very

strong economic message about raising incomes, and i believe and she believes that it is the central economic challenge of our time. and we have had, as you know, by some studies, a 40-year wage growth number of 9% when it was 91% for the 25 years after world war ii, and whatever numbers you are pointing to, the wages over time, and over decades have not risen, and that is creating a lot economic security, and she has spoken to that specific plan, but when you get to the general election, it is no longer a debate within the democratic party of how the raise the wage, but it is a choice of hillary clinton and the republican no, ma'am fee, and when that is engaged and the issue is engaged, she is going to be doing well in pennsylvania. >> finally, senator, and listen ing to trump pivot to the genera general, and he is going to be making career politicians the

liability for his own to suggest they are not good in the country, and do you want to see bill clinton on the stage or not? >> well, sure. i want to speak from the vantage point of pennsylvania, president clinton not only a strong rec d record, but it is a record that people in pennsylvania understand. when you leave office after eight years, and you have a record like he had of a net job gain of something like 23 million jobs in addition to a lot of other things that i think that he has a strong record for pennsylvania, and that is why when a lot of people evaluate the race a lot of people who are paying close attention to the ideas are to knock down the barriers that prevent people from getting into the middle-class, and hillary is going to campaign on it, and specific ideas, and the website, and 30 separate and major issues there, and one of the principle issues is to get people into the middle-class and getting the

advanced manufacturing as a focal point, and in pennsylvania, we need more than that, and more of the workforce than in manufacturing, and we need to get the candidate up, and she is going to be able to lead us in that direction. >> and a cell of five states elections in juan day next tuesday. thank you, senator casey. and now, looking at the diesel owners, and there is a deal? >> yes, it is between volkswagen and regulators with the california resource board and the epa of how to resolve the issue of almost 600,000 diesel vehicles not in compliance with the emission standards and we know a court in san francisco says that substantial compensation is going to be part of the deal, and the consumers will have the choice of having their cars bought back or

modified so that they do come into compliance with the emission standards, and exactly what that compensation is remains to be seen, but we know ofushlly what we report -- we know officially what we have reported is that volkswagen has reached a deal to resolve this issue with nearly 600,000 diesel vehicles. >> important news for those owners. and tonight, martin scorcese and robert de niro reunited for the 409 anniversary of "taxi driver." that story coming up. 409 annive driver." that story coming up. 9409 anniv driver." that story coming up. 409 annive driver." that story coming up. 0-409 anni driver." that story coming up. 409 annive driver." that story coming up. t409 anniv driver." that story coming up. h409 anniv driver." that story coming up. anniversa driver." that story coming up.

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great e sflent new york city, martin scorcese and robert de niro who will be reuniting for the 40th anniversary of their film at tribeca, and we caught one jane rosenthal about

the festival. >> you can have all of the technology and thet platform, but if you don't have good stories technology doesn't mean a thing. a number of years ago we did a vine creators festival, and we told the stories on vine, and how do you tell a story in six seconds, so we were intrigued with that and had all of the new creators and watched them migrate to different ways of storytelling, and a year ago we tried to do a snap chat tribeca fi film festival, and the timing didn't quite work out, but it worked out this year, and it is going to be interesting to see how you are telling stories in that fort mat. what's fascinating with the world that we are in right now, in that there is a lack of, and there is no barrier of entries for a kree creator. >> you have a generation of kids, and i have kids and you have kids who have known nothing more than having a high-def camera, and editing suite in their pocket. >> right. >> what is that going to do to

the to story telling in 20 years, and we have no idea? >> well, no, what it is going to be doing with story telling is that you will have a lot more creators out there, and the question is that just because everybody is on instagram, doesn't mean that everybody is a great photographer. >> amazing. the first festival, did you think that you would be doing it a decade and a half later? >> no, i thought it was one festival, and i didn't understand the long-term contracts, and i thought it was about getting people back downtown and i was obsessed with that in a post 9/11 world. i had been down here, you know a block and a half south of the towers when the planes hit. i was always, you know, so many people ran in, and i ran out. that feeling of almost of guilt ta you ran out, and why people

run versus stay to help. and after that, i wanted to make sure that as a filmmaker, you know, we could do everything that we could to help the community give our community something to look forward to. >> the use of the word guilt seems like you are being hard on yourself. i mean -- >> well, you know, what can i say? i'm a neurotic jewish girl from new york, i mean. >> rosenthal is a pay jor democratic party fund-raiser, and she talked about donald trump and his potential impact on film making. >> you are producing "trump the movie ". >> no, never. >> not even a question of -- gr no, i did a movie "wag the dog" and that is crazy enough, and now this guy even more insane. i think that the -- it is -- i wouldn't want to produce something that has that kind of

hatemongering. it's just and irresponsible talk that is only inciting just more discrimination in this country, and it's -- it is a real sad day that that's what the republican party has to offer is mr. trump. >> when you did wag the dog, did it feel like parody at the time? >> reyes, parody and is a tire, and then all of the sudden, it wasn't, but yes, it is still parody and satire. >> what would his presidency do to the film making and arts and how would hollywood react? >> who knows? >> i don't know. who knows -- i mean, how would hollywood react? we don't have to do comedy

anymore. we will be the laughingstock. i don't know if that is something -- >> something that you would not like to think about very much sounds like? >> well sh, it is a sad state o affairs. >> long time producer and co-founder of the film festival, and her comments of the economics of a filmmaker were interesting because she felt that more and more hollywood falls in love with the heroic figure, that theatrics could be squeezed out a altogether and just watch tv. >> and so it is the stand alone story, and not the supplemental story they are trying to do. fascinating conversation. >> and the point just because you get more tools in more hands does not mean that you get more talent in more heads. at a certain point this revolution is going to be shifting to talent, and then we

will see where it goes. >> yes. cu cureation is going to be the name of the game. >> decent gains on the course of the session today, and the big news is the european central bank news conference where they outlined for the first time how to stop buying corporate debt are from the beginning off next month to the $18 billion a month shy and in particular saying that it is the ecb's job to obey the law and not politicians where they come from, and he said that the governing council is thindependent in the stance, and that i have never ever talked about helicopter money, and this is the idea to simply give the people checks to boost

the e kconomy or variations on that theme. it was a volatile session on the euro, and i'm not sure that mario draghi said anything definitive definitively, but was talking about the agitation of the market, and there is pent-up agitation and not sure where to go next give n the agitation. and the bond market was moving before draghi spoke, and you saw a lot of the bond market selling off as you have seen the treasuries moving off, and this is the move and the beench mark, and the german euro moving up seven basis points, and netherlands, and france and uk and it is not sig ninsignificant the banks have been rallying with the interest rates, because they have won a reprieve are

from the committee that says they should hold more capital against the interest rate are r risks, and they have said, yes, you should do it, but we are not going to be regulating across the bord, but up to the supervisors of the bank. and the vicenza with the capital they were going to have to be backed, but they are trying to raise 2 billion euros, and we will see how that goes. and one more on the corporate side is the vw, and it is rallying again, and phil began to come through with the details of thef san francisco court with the settlements of the regulators, and more importantly the vw customers of the diesel vehicles which is a potentially half a million of the vehicles up to be bought back, and vw is rallying as it did yesterday up 13% in the course of the two days, and tomorrow is a supervisory board meeting with the vw, and will they retroactively can cut the e bow us ins of the executives and what sort of figure might we get

in the crisis in total? if it is 20 billion ur rows, arguably people can live with that, but higher to 30 billion, it could affect the stock. >> it is a huge number either way, simon. >> it is a huge crisis. >> simon hobbs, thank you. and coming up next, big day for the tech earnings. should you be buying or selling the names going into the close? we will have some answers in a moment.

good morning again, everybody, i'm sue herera, and here is the cnbc news update at this hour. the president of ecuador is going to the hike taxes to pay for the devastating earthquake that caused billions of dollars off damage. he is raising the sales tax and one-time levy on millionaires to pay for the reconstruction and workers making more than $5,000 a month will be forced to contribute five days' pay. >> and the red cross is delivering the largest convoy held for the opposition town held under siege in syria, and it is carrying much needed supplies for over 125,000 residents. >> a federal appeals course has dismissed a lawsuit filed by kentucky clerk kim davis, and this is after the kentucky governor removed the names of

county clerks from marriage licenses. davis' suit claimed that her name on the license form violated her religious beliefs. and queen e llizabeth is celebrating her 90th birthday, and going through the walk on windsor and receiving flowers and greetings are from well wishers, and we, too, would like to add our good wishes, and many happy returns. maybe a little extra something for the corgies in the bowl tonight because of the birthday celebration that. the news update this hour, and down to "squawk alley," jon. >> one hopes so. and meanwhile, two tech giants are reporting after the bell, google and alphabet, the parent company, and after rocky earnings what can we expect? david cats is the major investor and adviser as well as joined by

raymond. and now, on the pcs on the one hand there was a little bit of the mixed message in qualcomm with the impact better than expected, and what are you seeing? >> well, the earnings season in p perspective, and 69 p% of the companies beat expectations, and this earning season, not as much, but the one-off are beating them like intel, and they are low enough that they come in better than the current expectations so we believe it is a better than expected earnings season. if you take the microsoft and google case today, and once the dust settles, the companies are poised the do better, and the earnings are coming in pretty good. >> aaron, as far as google is concerned, you seem to have p t

pretty healthy expectations of how well they will do, and that because google befits from people having smartphones and they don't have the buy new ones, and they have a pc and it is a services driven system that we are looking at. >> yes, it is the mobile transition, and hearing strong growth and the side of product ads which they focus on more as well, and the checks are going to be stable growth as well as q-4 and looking at the googol sights growth, and somewhat easier comp, and looking for the growth, there and the core google which is 47%, and that is a core group of investors. >> and david, on microsoft, do ta continue to get the valuation story from the cloud story if the pc market meltdown leaks over to what we are seeing impacting intel? is this a key quarter for microsoft to show the

diversificatio diversification, and a risk if there is not enough of the diversificati diversification? >> well, we believe they are going to be showing significant progress towards the cloud, and they have gone from pure perception of the pc play to the cloud play on the longer term basis, and that is going to occur in the quarterly release, and we are watching the pc decline, and the cloud is picking up if a meaningful way, and if that is the case, the earnings will go through, and break through the $3 meand get nice multiple expansion, and we believe that microsoft can be 12% higher in the next 18 months. >> and are you worried? >> well, we are worry ared about everything, but in term of the qualcomm, we like the call, and they have beat the numbers by a lot, and settled up with lg and the stocks' reaction has been for four to eight quarters and going down a dollar or two, but this time, it is going down, and we use it as a buying opportunity, and a lot of things are going right with qualcomm,

and doing better for the chinese customers and getting paid on the royalties, and a 14-plus yield, and 14 times the earnings we are stepping in here. >> and do you any expectations with the google to show the financial engineering, and we have the buyback a few quarters ago, and we have ex -- expansion s, and do you see any of that? >> i do believe that the investors are concerned about the size of the losses and debts, and how to reduce it. we are looking at a loss of $11 billion over q11 and $4 billion for the q 4. and so that could be a rest for google. >> thank you, david katz from

matrix assets, and raymond kessler from raymond james. >> and now, two people making a big bet in film and sports, and rick santelli, what are are you watching? >> i love to look at the regional information that we get. today it is philly, and granted, different parts of the country have different issues, but there are certain issues ta are common no matter where you are in the country, and part of it has to do with the plumbing, and part of it throwing the kitchen sink at issue, and how does that fit? well, you will have to come back to the break to see a roto-rooter version of the santelli exchange. so when i found out medicare doesn't pay all my medical expenses, i looked at my options. then i got a medicare supplement insurance plan. [ male announcer ] if you're eligible for medicare, you may know it only covers about 80% of your part b medical expenses.

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>> coming up on the "halftime report" is under armour stock still ununderap preesh dwrated. and plus, if rates keep rising will the yield stocks fall? and we will be joined by "inside the top ten" the top of the barron's list 100 advisers. back to you. >> and now, we will go rick for the santelli, change. >> thank you, carl. wild times in the marketplace, and philly, and we could argue why some numbers resonate with the trading community and others don't, and for example today, leading indicators, and it is not more or less important than it should be considered, but traders have not found it

interesting, but they love the philly fed, and they pay attention to it. as i said in the tease, the regional dynamics may be different, but the one thing that is the same where you are? the rules of the road, the policy of the country, and maybe different issues in philly or empire, new york, or in chicago, or dallas, but in tehe end, the are all basically following and improve orger not improving based on the policy. so are there was a special question on today's philly and i loved it, how is your company's total spending in the following categories changed? and the categories are data network, plant, security, federal, local and other cop pli -- compliance. and now, if the bulk of the money is going into these areas of health care, it is not going

to be making the economy better, and productivity is going to diminish, and growth is not as good. and a lot of talk about changing the numbers, and if you change the policy or get a drain-o or the row toe router. in data, spending up 60%. plant security, spending up 31%, and the federal and local regulatory compliance, up 74%, but you foe they 'm a stick lar with the percentages, and if you look at it with things like the vix or the interest rate goes to 18 basis points, is it right to use the percentage? so to be fair and objective, all of that spending relative to the total spending that these companies are doing is 13.3%, and that is no insignificant number when you think of the earning season and the percentages, and couple of the percent make a huge difference. so the point of this is that we have heard many times, what's the problem? bad tax policy s overregulation,

and yes, but it is not only showing up, but it is showing up even in the regions that have various dynamics around and the moral of the story is that we need to concentrate on the policy versus, well, you are not understanding what we are saying, and we are getting it. it is ul about the number, and the numbers don't lie. jon fortt, back to you. >> thank you, are rick. recently released head sets like the oculus and other vr, content is prepping for it, and it is looking more virtual. our next two guests are working to make sports into virtual content. we are joined by ryan and gary. gar i have now launching a dox yum -- documentary, and now, ir ga -- gary, i want to start with

you, and v.r., and when i pit on, there is attention deficit, because there is nothing forcing me to look where i need to look, and is this really going the work for a full documentary? >> well, not a full-length, but a shorter piece or the serialized content. and one thing that vr is going to do that traditional film can't is that you are immersed in the scene, and there, and deeper connection to the subject matter, and not relegated to looking at the rectangle on the screen, but everywhere and on the camera all around. it is a different challenge for the filmmakers, but it opens up for audiences to have a presence in the film and instead of being an observer, and we put together ten academy award winners to explore the possibilities of vr to change the way we watch

docume documentary. >> and brendan, what are you discovering about the best vantage points and the wow experiences to sort of deliver the impact that you want with virtual reality. >> and to gary's point, talking about the sense of presence, and we have two divisions focusing on the training side, and putting you in and simulating what is it truly like to with be this the batter's box playing against cc sabathia, and that sense of presence is real, and when that ball is coming at you at 9 9 miles per hour, it feels very real. so to be able to step into the simulators to experience that is incredibly powerful. >> it is a cool experience, but talking about vr, we are still in the experimental phase, and now, at what point are there results. the realtor can say, i have sold more houses, because of this or the batter can say i can improve because of the practice with the vr. >> if you are looking at the training side of, this and the

fig fighter pilots have been training in the virtual reality, and surgeons training in the virtual reality, and now we are working with the nba and the nfl and other ncaa teams, and it is well documented that it is going to be here to stay, and get better and more seamless, and you mentioned the story side, and the realtors, and that where a big opportunity relies, because when you have a sense of presence in the virtual reality. >> and it is more about being in the fighter jet, but does it apply for the moments of the contemplation, and great sound bite or how does it change the cadence of editing and film making. >> well, it does. we aret the very beginning of this, and it is a new medium, and we are starting to explore what that language is and how to be different from the traditional film making, but it can do something that normal film making can't, and that as documentary filmmakers, we are trying to tell the story of to world around us, and issues, and

we will use whatever tool is at the disposal to tell the story in the best way. vr is another way to explore the wau we document the world around us. it is exciting, and we are seeing the new devices coming out, and sony has the playstation vr and apple and amazon will get into the market, a n all of the devices work without something to play on them. and so this is going to be a hu hugely exciting fill tom be in and we are excited to be in to be beginnings. >> and gary, do you believe it is the emotional impact that is going to be distinguishing vr from other types of film making? it is going to be the richness of the experience, and people going back again and again and do you have a sense of which it is going to be? it is is going to be hard for someone who has not gotten in there yet, and once you start to

see the potential, and if you can look behind the camera, and above and below and on ground, and choose what you want the focus on in the scene, it is going to let the viewer explore the story in a different way, and as filmmakers, we have to choose it up, and document it again, and it is sound and spatial audio, and to have the sense that things are happening behind you and direct the viewer in different ways, and a lot of tools to start to play with to see what we can do in the meeting. >> and brendan, i know that you are trying to use the same tools for people to learn faster and adapt to the situations, and interesting work for you have to be in this aria of new medium. >> yes, thank you. and talking about unicorns and sharks to i da, and bill gurley is dropping his own warning on that industry. more on that in a moment. my mom loves giving me advice. she even gives me advice...

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burn rates, and unprecedented low levels of ipos and m&as have created a complex and unique circumstance which many unicorn ceos and investors are hesitant. and what are you seeing here? >> yes, he is looking at it like the final scene of "reservoir dogs." i don't want to ruin it for people who have not had time. >> but people have had time. >> but these days. and peril in the situation, and people could act irrationally and go badly or the investors and the entrepreneurs and the workers unless people accept markdowns, and people don't just go out for themselves. i don't know, greed is not always good is part of the message here. >> and it takes direct aim at what he calls the dirty term sheets, and the investors putting the protections in for

themselves, and the ceos and the first-time entrepreneurs who don't know how to protect themselves. >> and gurley has been sounding this alarm before everybody else, and so we are reading that closely. and scott wapner and the half, will let's go over there. all right. guys, thank you so much, welcome to the "halftime report." i'm scott wapner, and the trade this hour is under armour after the earnings blow out in the hour today. steve weiss, pete and jon najarian, and steve cypress, the ceo of high tower properties, and the new addition to the top 1,100 list of barron's. congratulations on that. >> thank you. >> and now, after the company raised the earnings, and credit basketball star steph curry for a big