your link to what's next. good morning, it is 11 p.m. in china, and it is 11:00 a.m.

on squawk street, and this is "squawk alley live." ♪ good tuesday morning and welcome to "squawk alley." kayla tausche and me at post nine with jon fortt and jason calcaneus joining us as well. and now, our best ever day in china, and we have details with susan at hq. >> yes, let's go to hung cho, china where the alibaba is projkting to grow 30% this year, which is some different from the projections of the and --

analysts. there was an overarching event of the company, and to him, alibaba is no longer a marketplace to sell goods according to the ceo jack ma. >> we want to have the collective datas are from the consumers and the datas are from the business. >> yes, so data is very important to him, and, yeah, basically he is developing the cloud likem amazon and break out in the future, and you know the four major areas for alibaba, the cloud, marketplace, and what they are calling the mobile media and entertainment, and innovations technology, and the big topic that people wanted more clarity on is what he made headlines with last night. >> the problem is that the fake products today, they make better quality, better price than the real product, the real names.

>> yes, so better than the real goods. ma goes on the say that they are more confident than fixing the fake issue, and addressing the inv investor issues of movies and sports and going back to the opportunities in china for health and leisure, and as you have heard there, carl, he is a big ambitions for jack ma, but he said that he has had the big ambitions for 17 years, and people continue to call him crazy. >> thank you, susan li back at hq. and jason e over to you first, and big ambitions as susan said, but a long time horizon, and what do you do with some of the projections? >> well, u this they nobody has any real clarity on what is going on in china. remember, this is not a democracy and you have a company hanging out there and growing in a large way that the s.e.c. is trying the figure out what is going on, and for any of us to try to pretend what is going on in china and their economy which has many thumbs on the scale,

and the ton of corruption, and then trying to understand what is going on in the high growth internet company, very hard to have any kind of transparency or insight into the company, because it is kind of a black box, china, and so i would be very careful owning the stocks like these, and that being said, they have a tremendous business, and you know, they are moving towards operating like an american company which a lot more transparency, and the s.e.c. is going to force them, so it is an interesting test case, i think. >> and jason, there is obviously, a cultural barrier, an lan and a language barrier and currency barrier for new york and other u.s. investors burk with that guidance of 48% revenue growth year over year in 2017, and more transparency about the company, and that enough to make you feel confident or at least comfortable? >> yeah, i would not be comfortable owning anything in china in a place where the government can round up the press and put them in jail for

what they say. so no, i would not be feeling comfortable owning the stock or own i owning anything in china, because it is high-risk, and you have to be and high-risk investor and i would own it under a small, small, small percentage of the overall diversified portfolio. >> and the question is who is going to stop them? amazon has not done well in china, and you have domesticle competitors like jd.com, and we have a growing middle-class of ch china emphasizing the consumption, and they don't want to be just exporters, but they want the economy to be self-perpetuating and is alibaba a play on that? well shgs s well, it is hard for me to construct the scenarios where as long as they don't implode as well, they don't do reasonably well. you know, even if they face competitions from the likes of j.d., and as long as j.d.

doesn't kill them which they believe is going to the happen, they have a nice wind at their back. all right. >> sorry, i was waiting for jason jason's response, but we can move on. >> go ahead. >> well, it is very tough for any analyst to understand what is going on in china, and the big fear unloading in every boardroom is what is happening in investing in china, and is the shoe going to drop, and when we can ask people what their number one concern is, it is the chinese economy, and that is why you will get the resonance because we just don't know. >> and now, you called a move on power, and do you want to

comment on that one? >> yes, i believe they are changing the approach where all of the great ideas have to be inside of the building and not on any other platform, and if you look at what na tlt deldell done in buying apps and other operating systems, and so to buy linkedin which is a company with a massive amount of the data on the enterprises, it means to take things like skype and y yammer and integrate them into the graph, the enterprise graph at linkedin. and what does enterprise graph mean? it means who works at the company, and how long they have been there, and what skills they have and what they do for that company, and with one button, you can have everybody who is an engineer at a company through linkedin in a chat room. so there is a many different ways in which this could add a

ton of value. it does speakle volumes that maybe the team at linkedin feld they were bouncing along the ceiling and they could not break out. sometimes when you can't breakout, the gains come when you are part of a bigger company like youtube did with google. and now it is a juggernaut. >> that is important with google and youtube, and that is unlike facebook and instagram, and unlike facebook and wassup that is what po powered. and so it is important to see how the online identities are going to be cooperating or integrate. you have the live i.d., and then the linkedin i.d., and merge them together or try to make them work together really well? enable you have to be able to work on the office documents easily from within linkedin and then encourage you the sign up for a paid office 365 account,

and figure out how to encourage the enterprises to do it with the linkedin, and that is what the ceo was hinting at that revenue growth would be her first project, and to create ancillary benefits. >> and it is a great part of the namesake, because the graph when you login to the facebook, and linkedin has ta service, too, and so if you have a linkedin account, you can log into other accounts, and this is going to produce a ton of data, and if every single had linkedin account and got free storage and outlook and skype account to go to the skype director, and everybody in linkedin is there, and you go to the skype, and you is search for the cfo it is right there and incredibly powerful. the other thing that you mentioned about the youtube/google analogy, youtube had out of control spending and they really had a hard time

scaling the service on a global basis, and looking at linkedin it is going to be youtube so effectively, and linkedin cost structure is high, and you will have all of the efficiency with the cloud computing, and this is a bold move with microsoft, and it is going to push a lot of companies to make a big acquisition, and certainly, i think that twitter is in play. >> finally, jason, everybody n wondering what your take is on the warriors today d and falling to the cavs in game five, and lebron with 41 and you were not kind to lebron on this show a couple of weeks ago and let's hear that tape. >> yeah. >> i don't think that lebron james will ever win another title, and he won't win another title. if they can keep this team together, the warriors are the greatest game in the history of basketball. >> a viewer writes in, hey, carl, ask that golden state loud mouth where his gold en state

gear is. >> very good. i have been meeting with microsoft after this, and that is why i didn't have the shirt on. and listen, number one, they took out draymond, and lebron being the cry baby that he is complained to the league, and the national lebron association -- >> he is doubling down. >> suspended draymond and we would have won last night if we had draymond, and the man in the middle with andrew bogt who went down, and our thoughts with him, and he is a true warrior, every sense of the word, and yeah, when we have the guys back wx e e will demolish them in game six, and lebron is 2-5 in the final five appearances, and his legacy is winning one less title than dwyane wade. >> and six or seven? >> it is six. they are going to be winning it in cleveland and lebron is going to cry for every call. >> jason, thank you. jason calicanis, thank you. meanwhile, the investors are

going to the cry over the boards, and the german bundes going negative, and the vix here in the u.s. did surprise to the upshare. and also, a rallying stock of yahoo! is the top p performer on the s&p 500 up 2%. >> and when we come back, the st stocks are slipping as brexit fears rise. plus, microsoft's linkedin looking atop come ppetitors. and the revamped siri, and one of the big apple conference reveals, and does it have any impact on the price? we will talk about that when "squawk alley" comes back. the cloud-based development platform that's industrial-strength strength!

today, the cnbc fed survey takes a closer look at which candidate wall street thinks is best for the u.s. economy. steve liesman is back at hq with that and who is it? >> well, it is a split decision. 45 ps of the 41 respondents from are the street think that donald trump is best, and 30% say clinton and 25% say don't know, and kind of a big of number who is skewed republican, but when it comes which candidate is best for the stock market, clinton beats trump, and 38 say, hey sh, they just don't know. however, what they do think they know, 80% say that clinton will win the election, and 15% say

trump, and 58% say that the whole campaign is negative for the economic outlook, and this is the comment there from john roberts. the high levels of negative campaigns are not positive for t the market. and diane swonk says, the push to inhibit trade, close borders and regulation ip crease across a broad swat swath of industries are all a threat to growth in 2017. you can read more about it on cnbc.com. and now, can the brexit concern concerns contribute to the concerns mounting? thanking y you for stepping off

talk to us. >> thank you. >> the instinct is to run given the trajectory of the polls in the last few days. is there anything wrong with that? >> well, the markets hate uncertainty, and of course, uncertainty the rises now that it looks like it is too close to call for the brexit vote, and with the rising uncertainty, of course, the markets are under pressure, and once the vote happens, a certain measure of unse uncertainty is on, and it is more likely than not that we will see a pop in the markets no matter which way it plays out. >> and how much of a difference in the pop between a leave vote and remain vote? >> that is something that i wouldn't have any strong view on. i think that the fearmongering on the remain side is a little bit over the top. rolling the clock forward ten years is europe still going to be trading with the uk? of course they will.

will it be materially different from today? of course not. so the only real issue is how nasty is that intervening two the three years while they sort out the logistics and the details. >> well, rob, now reuters is reporting that the ecb would backstop the markets if in fact they voted to leave the european union, and how material is that? what size of program is need and how long would that last? >> well, firstly, i would hate to know how large a backstop would be needed. i'mt not sure that a backstop would be needed. i am not sure of the impact of the markets all that dramatic, but secondly, and more no the point, is that the role of the ecb? why should the ecb think in terms of buying stock? good gracious. >> well, they are buying the corporate bonds. >> they sure are, and that is intervening deep into the capital economy. it winds up leading into the risk of major mall injustment.

the way that the central banks are behaving is as if a handful of wise men and it is mostly men can make decisions on the prices more than a, more sound than millions of consumers, and millions of borrowers and lenders, and come on, let's threat markets sort it out. spe >> speaking of that, this eraf of the last two weeks of extremely low, and in some cases negative interest rates, and you see it as destructive, and how destructive -- >> i do. >> and give us a short to medium-term end game. how does this wrap up or at least this chapter in 2016? >> the end game, i guess that i'm not as afraid as druckenmiller is in his prognosis, but i believe it is very destructive to have the

central banks forcing the interest rates to be below the rate of inflation so they have negative cost of capital. it leads to major mall investment instead of the companies funding new initiatives and long horizon new ini initiatives that are risky, they use the free money to engage in stock buybacks and that type of thing which is an investment in the future, which is an investment in propping up share price, and si not healthy, and the healththy economy is one that makes its own decisions, and the classic inindividualable hand of the marketplace that adam smith talks about is being tied behind our backs, and it is not allowed to function to allocate capital to worthy long horizon potentially risky new initiatives that have formed the foundation for the long term future growth. >> rob, someone has to be buying this debt though for the price s to be spikinging the way they are in the yields to be going as low as they have gone.

if it is not just central banks, who are the buyers who truly believe that the global growth is so bad that those are good inv investments? >> well, certainly, investors who have to put their money somewhere, somewhere, and if you are left with the choice of expensive u.s. stocks for example or zero yielding bonds, that's a problem. it is not a pleasant choice. it does turn out that there are markets that are very cheap right now, and notably emerging markets stocks and bonds, and emerging markets are priced 11 times earnings, and this is g d good. and the emerging markets value as represented by a fundamental index is 6 1/2 times earnings, and the january lows is 5 1/2 times earnings, and if you can buy half the world's earnings at six times earnings, you can be cheap and afraid and some of the fears are e legitimate and secondly, you buy some, and you recognize that you can't pick

the bottom, and if it is cheaper, you buy a little bit more. >> rob, appreciate that as always, and bob arnot is joining us for a meeting of the minding. >> and what the next linkedin deal means for the cloud. vm, one of the top competitors in the cloud is coming up next. and millions of women everywhere decided, "i love that shoe." and the company's data center handled the spike in traffic without any drama. before all of this. cdw orchestrated a scalable software defined data center solution using vmware nsx technology. scalability by vmware. orchestration by cdw. and i thought, well, you need to go to the doctor. i was told that is was cancer, and i called cancer treatment centers of america. dr. nader explained that they can

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so what is the key to growing a cloud-based business? our next guest specializes in the modern data center in security, and competing with the likes of microsoft in that space. patrick elsinger joining us now. thank you for being here. >> always a pleasure, jon. >> and you have a vote coming up in more than a month on the dell transaction that when we first heard about it, a lot of people thought, no way that this can happen, and no way a that

private dell can purchase emc, and now it is a foregone conclusion, and how is the conclusico affecting your conversations with customers and oh my goodness is vm dr vmware going to survive? >> yes, and they thought, wow, is this going to allow us to continue, and quickly, people sort of got over to logic of the deal, and back to business, and by the end of the last year, we had a solid q4 and q1 and people got back to work. there is curiosity about it, but the teal is amazingly smoothly, and think thing of a deal of this magnitude, and the shareholder vote, and the debt is raised and it is a fairly, you nknow, the legal and the regulatory approvals, but within the time frame that we laid out.

>> next quarter. >> yes, and it will accelerate vm's growth, and i have exchanged the e for the d, and so i now have a new shareholder with dell. and so we want to maintain our independence and ecosystem. >> speaking of the consolidation, microsoft going the buy linkedin? >> well, i was predicting the consolidation phase of the industry for several years even before the dell emc deal occu d occurred so this is going to fit into the strategic framework, and more major consolidation, but this one, i did not see comi coming. >> what do you see as the big challenge for microsoft to acquire a property like linkedin? you are probably hoping they will take their eye off of the ball like the mobile device management where your air watch competes? >> well, like any acquisition, you are look for the strategic fit, and the cultural fit and succeed in the integration.

there is an area where vmware has a great reputation, but making it success hfl in the tactic tactics and the details of integration, and that where the su success of the strategic pieces will make it work or not, and can you make it work in the field. >> you announced a smaller acquisition of arkin? >> not quite $26 billion. >> not quite. and what are you hoping to accomplish with this specifically as it deals with security, cloud, operations, what is this going to give you? >> well, what we announced is arkin net which is specializing in network management, and that is the whole focus of network and security moving to the software level, and in the world of cloud, it is moving from the hardware to the software, and that i have unique technology the give the customers visibility, and operational management of this virtual networking environment, and the custom

customers put it in, and within a few minutes, a perspective of the network they have never had before, and the vulnerabilities, and so we will be able to help with that. >> and is this one that had been stalking for a while and finally e slowed down for a while to grab it? >> yes, a good ecosystem engagement for us, and we have been following them and the founders were vm people, and good relationship, and with the cooling of the unicorn environment it was the right time to make a move. >> did you say how much you ended up playing? >> we are not public on that, and so it is private. >> how much was it? >> can't tell you, but lower than $26 billion. >> and are you optimistic about the demand heading into the back half of the year? it is pretty much up and down in the reports we saw last quarter? >> and we had a good q1 and kept the guidance consistent over the year, and overall, we are seeing good momentum to the products, and the ecosystems, and we

announced with more partnerships, and the customer momentum is solid and good interest in the software-driven data center, and the cloud offerings, and of course, the mobile space for sus a hot space as well, and overall, we are feeling good. >> feeling good and solid and hot, and those are good descriptors, and pat gelsinger. thank you for joining us. >> thank you, jon. you are always great. and now, simon is back on europe europe? >> well, thundering down and the eye of the storm is what happen s next thursday with the vote on whether the uk is going to be leaving the european union and these are heavy losses with four polls coming in suggesting that the leave campaign is in front, and then rupert murdoch's "sun" newspaper saying that the uk should leave, and that has grabbed a lot of people's attention. what is important here is to understand that the market as ubs is pointing out is trying to price two completely opposing

economic outcomes, so you won't see the massive price movements the way that you believe you might. and yes, the pound is under pressure, and it is assurance of where the pound is going to move, and it is still a move on the session, and so you can also see for the record today, some of the asset managers in the uk unusually moving to the downside, and over in switzerland, there is a profit warning, and uk builders have are also fallen, because there is a hiatus within the buying and the selling in the property market within the uk, and so they are to the downside. and perhaps with the irony, the biggest outcome of what is happening in britain with the prospects of the out vote is the effect that it is having on the general rally of fixed income, and therefore further record e lows that you are getting on many of the instruments, and obviously, today, you will be moving negative for the 10-year bund for first time ever. that is going to mean that a lot of the european banks and

oftentimes the eurozone banks are coming under pressure for the end of the session, and they are of course, some of the arguably weaker plays in the moment, and people are unsure about the capital increases, and unsure what the central banks could do and come the situation friday if they have to come through to say something to convince the market that they have this. iron clishgs it is moving -- ironically, it is moving outside of the uk which is symptomatic of what is happening with the polls. >> thank you, simon. when we come back, apple announcing a major upgrade for seer ri, but enough to compete with google and amazon? we will find out in a moment. the dow is down 123.

good morning, everyone, i'm sue herera, and this is the cnbc update. the shooting of omar mateen has told the fbi, his wife has said that she tried to talk him out of going to the club. and now, the authorities are trying to the decide whether to bring criminal charges against her. >> and now, speaker ryan said that banning muslims is not in the country's interest standing against donald trump's ban on muslims. >> i do not think that a ban is in our country's interest, and i

think that the smarter way to go is to have a security test and not a religious test. >> and the french riot police are clashing in an anti-labor reform in paris, and the protesters are rallying against a reform bill to loosen the labor rules specifically the 35-hour work week. the riviera-tell and casino, the first high-rise wasle imploded this morning. the monaco tower was demollished with explosives and a fireworks display. it closed in may of 2015 after 60 years in the northern end of the strip. that is the cnbc update this hour, and back downtown, kayla. >> thank you, a piece of the skyline is gone forever. and now, apple's message to developers is announcing that it would open up the talking phone assistant to the third-party developers and announced a number of upgrades, but can all

of that give the apple the innovation boost some have questioning? we are joined by manju of "the new york times," and brian white, and you were there yesterday, and you felt the mood in the room, and they left no stone unturned with software, and what was your impression? >> this is what differentiates apple, and we saw a much stronger, smarter planet apple. so looking at the competitor out there, they are relying on the android, and it is increasingly difficult to compete, and so for the competitor, it is about hardware, but for apple, it is hardware service, and that is what we saw yesterday. >> and so, farhad, they said that you are going to be making siri smarter, which is looking like alexa, and you will have face recognition, and that is already there, and is that unfair? >> well, slightly unfair, because the companies go back and forth as to who is going

first and second and the user don't really care if apple had it first. sure, data had data mined facial recognition first, but it was on the iphone, and you could get it there anyway, so it did not hurt apple that much, but what matters here is the long-run questions if apple and like what we saw yesterday can suggest that apple can get better at the artificial intelligence, and the online service, and there i think that i am cautiously optimistic, and but there is some caution to it, too. >> and what leads to your optimism, farhad, and it is not the animated bubbles and message? >> no, they did spend a lot of time on the animated bubbles and message. so it is good to open up siri to third-party vendors, but this is

the way they do it. they start out slowly, and the question is whether they will be opening up siri enough, and whether, they will have a much stronger privacy stance and they want to make sure that your information on your device doesn't go out to the cloud and analyzed there, and that is going to be slightly tougher for them to do some of the artificial intelligence online service things that other companies are doing. they say they can do it anyway, but whether the privacy stance and the culture of the company will allow them to do a little bit more of what google is doing. >> brian, apple announced big changes to the way that watch os, and watch os3 is going to work, and also some significant changes in the apple tv being this hub that controls the smart home at least that keeps everything connected. when you are looking at those two potential growth areas, they are growing already, and the

potential for the bigger growth which one gets you the most interest and excite and head g toing into the holiday season. >> well, i think that in the near term apple watch is still probably going to be more important longer term where it can be apple tv. you are raising a question whether it is faster apps on the apple watch or siri in the home app on the apple tv, and all of the things in the apple ecosystem are connected which makes your life easier. it is nothing that the competitors can touch. i point out that what they are doinging with the home computers with the new home builders, they are announcing new home builders to introduce home kit, and car play and what they are doing, and so we say, no hardware and i knew they would announce this, but when you take a step back, and who can touch what apple is doing, and i say nobody out there. >> and this morning, jim cramer was exasperated and he said, what do you want? a car that goes the mars.

and farhad, should we just be used to the fact that the technologies will make our lives faster and more efficient? >> well, for the next few years, that is right, becausem am moizing things coming with virtual reality, and the virtual cars and the a/i assistant s s smart, and the next few years, that stuff is not going to be looking good or available, and we are left with the bubbles in imessa imessage, and, you know a path towards those kinds of thing, and the future, you know, huge improvements for the next year, you know, from apple, google and all of the other big company, and more than a year, i think, things are going to be a little complicated and not going to be looking very polished and may not look well, but eventually, we will get there. >> and farhad, swhen the last time that people said, wow at an apple announcement? and the iphone, who wants that. it does not have buttons and the ipad, and just bigger, and in

retrospect they say they are amazing, but at the time, they said they were an innovator. >> yes, things are always looking better in retrospect, because you can see the impact that it had, and one of the kind of the underappreciated things from apple is apple pay. they have been rolling it out to lot ares more people yesterday, and lots more merchants yesterday in that you can use it on the web and authenticate your purchases with the iphone, and those are big deals, but we won't know for a few years until they are adopted more and the way we use technology, so it is hard to tell with these things beforehand and especially at the la launch announcements. >> farhad, we appreciate it. farhad from palo alto, and brian here at post nine. >> we want to go to sue her h rare ra with breaking news. >> in is the congressional national committee, that cnbc

has confirmed with a earlier story that the russian government and hackers penetrated the democratic national committee computers, and so nbc has said that it is so thoroughly compromised the dnce.t mail, and chat traffic that according to the dnc officials and one of the several targeting political organizations, and the networks of presidential candidates hillary clinton and donald trump apparently were also targeted by russian spies. a russian embassy spokesman did not have a comment, and he said that he had no knowledge of such intrusion, but once again, the russian government hackers have penetrated the computer network of the democratic national committee and gained access to an awful lot of data. kayla, back to you. >> thank you for the up ydate on, that sue herera.

>> and coming up, keeping our eye on washington, and president obama meeting with the national security council this morning, and he is set to deliver a statement in a few minutes live. and plus a three-day e settle down on the dow, and it was off of the lows, and now currently down 90 points, and we will have more on that the on "squawk alley." ix from ge. the cloud-based development platform that's industrial-strength strength!

coming up to be "halftime are report" we will have

breaking news at the top of the hour with the president speaking on the orlando shooting and the battle against isis. and plus, tech investor mamood hamid about new investment investments. >> and u caught up with kevin plank of "the game" and what tech has meant to huz brand. and we will have more coming up. >> and i have an idea what steph curry has done to his brand, but coming up at the half, we will see you, scott. kate rogers has a closer look at that in denver, colorado, where cnbc and iconic magazine tour is kicking off. >> that is right, kay l.a. we are here at the denver museum of nature and science and as you mentioned the naib is out with the index for the month of may and it did see a modest increase after several months of flat reads and hitting a two-year low

in february. among the biggest issues for small companies is finding skilled labor. employers are saying they they are looking to hire, but they expect the economy to improve, and it is fitting to get the message of optimism when we are here in denver which ranked a top five metro for startup activity according to the cogman foundation, and they say 178 start-ups for every 100,000 residents in this met row, and 86% of them are launching companies, because they will see the market opportunities the do so. they are not pushed into the entrepreneurship out of nessie which is an important ind icato and due to the great educational feeder system, and the university of colorado and d denver university and also, awesome products like tech supplies in nearby boulder, colorado, and i had a chance to meet up with some of them, and so it is um presive and -- it i

and i can't wait to show them to you. tomorrow, you will be hearing from greg glassman founder of fitbit, and michelle phan co-founder of ipsy and chip wilson, founder of lululemon, and also governor john hi hickenlooper. and you don't want to miz any of this tomorrow. >> it is a gorgeous live shot in what is one of the most beautiful cities in the country. thank you, kate rogers at iconic. over to the cme group with rick santelli, and get the santelli exchange. >> well, hello, carl. today is the first day of the t two-day fed meeting and when the previous meetings came out in mid-may, everything thought it was hot, hot, hot, and most now think not, not, not, and there are a variety of reason, and there always are. and take a step back. we see the historic moves europe, asia, and the negative

rates, and concentrate more on europe, and mario draghi, and it is no secret what the bund yield s have done, but it is no secret that european banks don't seem to be improving. as mario draghi is going to be hitting the accelerator of the stimulus of the so-called n negative rates, and how stimulative is it anyway? you can come up with the scenarios that might b and it is how below interest rates procure the capital, and what the capital is deployed in, and we could take an example from the u.s., and look at microsoft and the 26 billion and change for linkedin. they have a boatload of the money, and not taking it overseas, but raising it in the the markets most likely the debt market markets. we are creating a form of behavior that was probably not the intended outcome when these programs, and the policies were put in place, but what is better than one's own eyes for proof?

if negative rates are the med snin europe, the patient does not seem to be improving and look at a few, just a few, and the 20-year charts of some of the big banks and look at deutsche bank. unicredit, and commerce banning, and barkley's and san tan deere. this just doesn't seem to be the policy warranted. that is the most disturbing aspect of all, and it is not that mario dragmy has it right, or anybody else, but it is my opinion that the central bank in the form of the fed has all of this to look at it, but it does not seem to make a difference, and that is is important. and janet yellen and company need to the pay attention to the message in the financial sectors and i understand that it is not only about the banks, but be real here, and it seems that

most of the policies are directed in that arena, and if it is not about banks anymore, what are we going to do to create the type of capital flows that are needed in a global economy without them? these are the questions that need to be answer and questions that need to be asked at press conferences. carl, back to you. >> rick santelli, thank you very much, and appreciate that, and when we come back, any minute, the president is going to be meeting with terrorism after speaking with the national security ko security council. we will go to washington when he begins to speak, and meantime, the dow is down triple digits at 105.

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live shot of washington, d.c., where any moment president obama is set to speak after meeting with the national security council this morning. of course, plans are announced for the president to go to orlando on thursday, and our john harwood has been watching that, and watching in washington. john? >> carl, we will hear from the president after he has been meeting with his national security department and the national treasury to assure americans that the government has a multi faceted approach to deal with terrorism, and of course, we are still learning of the motivations of the shooter in orlando who appears to have been inspired, radical izized t

some degree, but have other motivations as well, and also hear possibly from the president to address the reports that the pentagon has not confirmed that the isis leader abu bakr al baghdadi has been killed. in a briefing, we were told that the military intelligence department had no confirmation on that. >> and the isis chatter is all that it is at this point right now. and then this report which nbc is now confirm iing that russia hackers have had access to the dnc network of trump opposition research for near ly a year. i wonder what you think that means. >> well, i have no idea what it means. i mean, the report indicated that the same russian hackers

attempted to get into other political campaigns' data, including that of the trump campaign, and some republican commit tease and why the dnc was vulnerable or specifically targeted, we just need more informati information. but boy, i'm having flashbacks to 1972 when i was in high school and of course, the democratic nashl xhtional commi was burglarized in the watergate break-in which ultimately took down a president of the united states. no idea the motivation, and if others are affected and we just don't know yet. >> and meanwhile, john, we have been talking about the fallout from orlando not getting along, and this morning, jeh johnson from homeland security called it part and parcel of homeland security with fwun control, and we go through this a lot after

the terrorist events in this country, but any look at the the policy is going to be changing? >> i doubt it. it is something that divides the party in a sharp way. and democrats simply even at the peak influence, and the peak public attention after the newtown massacre, they were not able to push through congress certain steps closing the so-called gun show loophole. a and the democrats are going be trying again, and we veen a new slogan, no guns for terrorists trying to make the case that if you have be put on a no-fly list, you should be barred from purchasing weapons. whether they can make some headway with that into the congress is doubtful, but i ti they will keep trying and maybe an issue to both sides can use to mobilize the bases in the fall campaign. >> and florida has been call ed the gunshine state, because of

how many residents there own guns, and because of the relative ease in that state of acquiring the guns, but now a new wrinle kl that pete william has reported that the wife of the shooter accompanied him to purchase these weapons. how does that impact this this investigation? >> well, they may have criminal channels against her -- criminal charges against her if she new of an impending attack, and did nothing to stop it. and to the degree that the coordination with other people if there was any coordination, and you know, the wife may have information about whether this was simply omar mateen making his own plans, but they are going to be taking a look at her contacts as well and try to see where it spreads exactly. it is alarming piece of information, certainly, and certainly places her in

jeopardy, but it raises the additional questions that the investigators will have to run down. >> john, thank you for, that and john harwood in washington will have to watch the president's comments in a moment, and of course, the dow is struggling down to 114 as we are paying more attention to the fed. the statement tomorrow of the brexit and the german 10-year getting a lot of attention. and now we go over to scott wapner and the half. all right. ca carl, thank you so much. welcome to the "halftime report" and we are live once again from the cnbc bureau at 1 market in san francisco, and as you know, any minute the president is expected to make a remark at the treasury department about the investigation into the orlando shooting and the fight against isis. we will take you there as soon as we see the president on the right-hand side of the screen there. and we continue to watch the markets as well. they have been more volatile over the past few day, and we have been looking at the vix spiking to the highest