good morning. it is noon in rio. it's 11:00 a.m. on wall street and squawk alley is live. ♪ ♪ joining me back for the hour in new york and business insider ceo. a lot of headlines today for the olympics and their guys with green arrows in the markets,

john and gave us insight into mobile on squawk on the street. take a listen. >> 75% of our gnb as well as 75% of the china retail market revenues come from mobile. so we have come a long way since two years ago when people were concerned about that issue but today we have just reported that our monetization of mobile users has exceeded the monetization. >> alibaba shares up a little better than 5%. 4.8 billion in revenue. 59% year on year we saw strong results and google putting it's

issues to rest. have we reached a point just when it comes to online advertising and e-commerce where mobile is mainstream and investor concerns need to go away. >> this is the same transition that facebook made after the stock dropped and everybody thought their desktops were finished. facebook figured it out. stock is up a spectacular amount and mobile turned out to be a better revenue generator than the desktop so yes this transition is happening. there's no question that this is where pretty much everything is going. you look at newer audiences and newer sights and business insider that we launched. it's 80% mobile. it's incredible. >> how much should we read into china from this though? >> we get strong reports from a

couple of big names listed here. >> the problem is you have these accounting questions and the china dependency, given that is it worth making the bet? it's mature and spectacular growth, can they take what they're doing there and now go international buy u.s. companies and so forth? they haven't been able to do that. great. >> so you think that the fact that the business is firing on all cylinders right now at least in the near term that overshadows any slow down in gdp and any concerns about the currency and any concerns about perhaps their continued fight against counterfeits. >> if you can grow at 60% in a business of this scale, things are doing great, sure. the overall economy has some impact on them put they're perfectly positioned for the economy but i think generally setting back again, a mature company and not likely to see a lot more margin expansion. it's all a question of how fast.

>> plenty of people are short for a lot of reasons but they put up a great quarter. >> let's take a turn to the campaign trail. donald trump joined squawk box this morning and becky quick is back at headquaters with highlights. >> good morning, john. good morning, everybody. both candidates are trying to distinguish themselves with their economic plans trump's tough stance has been pretty difficult to swallow. it left some business leaders squaking in their boots. trump tried to tamp down some of that concern. >> the fact that i'm negotiating trade will mean we'll make good trade deals but we are absolutely going to keep trading. i am not an isolationist. i'm a free trader. i want free trade but it has to be fair trade. it has to be good deals for the united states. i was asked what is your definition of trade?

make good deals for the united states and ideally great deals for the united states so we will be redoing some of these horrendous trade deals that have destroyed new york state. take a look at what's going on out there. that have destroyed pennsylvania. that have destroyed michigan. >> as far as some of the more controversial comments off the topic of the economy, trump is not backing down from statements including last night's comment where he said that president obama is the founder of isis. >> he was the founder of isis, absolutely. he was the founder, absolutely. the founder. in fact, he gets t in sports they have awards, he gets the most valuable player award. him and hillary. >> those statements have drawn massive amounts of criticism from democrats and others including many traditional

republicans and even some of the trump supporters have become very uncomfortable with this despite they say they're still supporting him. it's also cost him in the polls but trump is not going to change his ways. he tells the truth even if it's not in the most pc manner and he does have a back up plan. >> keep doing what i'm doing now and in the end it's going to work or i'm going to have a very very nice long vacation. >> first time i heard something like that from him but john back to you. >> henry, continue on this subject. trump says he tells the truth. he says president obama is the founder of isis which of course is not literally true but my question is how much does public character matter anymore in u.s. politi

politics. we're in a different era now. does it matter? >> yes it matters. it's crucial and throughout the campaign we have seen donald trump say something that lots of people interpreted this week it was a vailed assassination threat of hillary clinton. of course no. it keeps happening as president you would have to be extremely careful about how you say things because they effect people. it actually matters what you say. it's not what you meant ultimately so that's very important. let's focus on business for a second. we are at the point in the campaign where we need to hear some details. it's fine to say that all u.s. trade teals are horrendous. you're not going to stop the movement of manufacturing to china, vietnam and elsewhere. it's a better economic decision. you can't be for free trade and say we're going to prevent that from happening. you can't target specific companies and say you're not

allowed to move. you can move. i'm going to put a different tax rate on you than you. you can't do that so going forward if he wants to maintain credibility on business we have to see details on this. what's wrong with the trade deals exactly? how are you going to change them to make them better while still being fair and free? which was the ultimate goal here? it's time for details. >> they have tried to use the details we have gotten so far and square how they would impact the economy and moodies said trump's plan would destroy jobs or destroy more jobs and hillary clinton's plan would create and it would ib crease the deficit. trump responded to that this morning and said that's a ridiculous statement. moody's must be democrats. >> exactly. if it's ridiculous explain why. what assumption are they making that's wrong. >> oh, they're going to make the iphone here if i'm president.

really? is that what americans want. americans love low prices. they go directly to consumers. walmart, you going to stop walmart from manufacturing things? very complicated. it's very easy to say these are horrendous, we have to fix them. >> what are the implications are renegotiating trade deals? is there precedent being able to say i already said we're going to do that and now we're not going to do it anymore? and is there the danger that we renegotiating deals? let's renegotiate those as well. >> things are not perfect anywhere. there's tons to be improved in britain. everybody voted things need to be improved. now we're getting into the details of that which pretty much everybody agrees are going to be horrendous what it's going to mean.

years of uncertainty so you have the same thing. one other thing that mr. trump talks about, obamacare, this is a republican theme. horrendous for businesses. i run a business. it is not horrendous for business businesses. >> hillary clinton has a speech at 1:15 today talking about the economy in michigan and we'll plan to carrie some of that as well. meanwhile, the head of alphabet's venture capital arm, at least one of them, google ventures is leaving the company. he oversaw several key investments including nest, uber and coffee maker blue bottle as well as the less than successful

secr secret. >> used to have google's self-driving car project. i'm not sure that this is a big deal. not because he isn't a great guy, we had him here on squawk alley. very smart. he had been with google a long time but we had executives leaving google before when marissa mayer left for example and the stock is up since then. they continued to do quite well. is it any different this time? >> no, you nailed it. it's a big company and very mature at this point lots of executives. google has shown they have incredible internal people they can promote to these and they go outside when they need to. a great hire for them so this is business as usual and they're

going to continue. >> this is something that i started hearing about almost a year ago and when it never happened i thought it was something decided against but the fact that the seeds for this apparently were sewn several months ago does that strike you as something where this discipline is perhaps something this unit didn't take well with or they're doing a more bronze scale realignment? >> it's possible. they're trying to get more disciplined as you say so you have to change people as a result of that but this is not a big deal. other people will get the opportunity and maybe they'll be better. >> part of it is when people get this rich working for a company, every once in awhile they go, maybe i'll do something else for awhile and then sometimes they come back. stick around. of course we're going to have a lot more from you let's get out

to carl in rio. >> hey, john. swimming is obviously the lead today. not just because of michael phelps but because of katie ledecky. the u. s. wins gold. she has more medals than any other olympian here in rio. three golds, four total and she has one more big event. the 800 meter free style tomorrow with some preliminary sessions today. her teammate talked about their team victory last night. >> we won a gold medal and that's a part of history and we're so happy to be a part of it and soaking it all in. >> we have a really strong tradition in this relay in particular for the u.s. so to put together solid swims and come out with a gold is all we wanted to do.

>> they are not far from our set and we went over there to take a look. >> from virtual reality to creating personalized music mixes to the galaxy s 7 water test they'll show case the latest technology through the course of the games. >> so here's a way to experience virtual reality. samsung is calling it the kay y -- kayak slolum. let's do this. >> wow. that's good. >> in the end, everything experienced is available for visitors to purchase on the spot. well, everything except the kayak.

>> john i know you tried some vr at the code conference. i don't think it was quite that exciting with the move in kayak but samsung obviously the big player and hardly any mention of apple on a day like today. >> i'm not used to you putting on vr head sets. >> we have to do that together sometime. >> absolutely. >> we could use one of those back here at post 9. if you can check that on the plain and see what you can do. >> okay. >> when we come back, why some big content creators are refusing to sign up with facebook's live and then arianna huffington is leaving the huffington post. details up next. plus how top silicon valley vcs are finding the next big thing. more squawk alley up next. experience breath-takingppo lexus performance in street-legal form. for a limited time get great offers on our complete line of f sport performance vehicles.

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>> the wall street journal out with a new report that valuable tv content owners, and cnbc's parent company are concerned about striking video deals with facebook. julia jones us from los angeles. the publishers didn't have a problem. what's different? >> right now media giants are cautiously watching the fact that facebook has been increasingly drawing ad dollars from tv ad budgets. to draw more facebook has been trying to lure over content creators to share tv clips on facebook and create original

premium content for facebook live but companies have a few points of concern according to the wall street journal it wants to sell the adds rather than allowing the media giants to bundle them into larger deals they are proposing a 45% take of ad dollars and while they're playing to a range of media companies and celebrities for giants like espn 1 million or 2 dollars isn't that much. even if they resist locking in long-term deals media companies are continuing to experiment on facebook. e is producing five shows for book live but the nfl didn't renew it's deal with facebook. facebook didn't want to pay as much as twitter did and snapchat is allowing content creators to sell the ads against the content they create on the social platform including it will make

a series of programs starting with one later this month around the voice. facebook said it's experimenting with different advertising models so this is just the beginning of the dance between the content giants and facebook as it looks to be a key player in content distribution. >> thanks so much. henry is still with us. if you are selling video to any one of these new platforms and you're between facebook, twitter and snapchat, how do you make the decision? >> they are what cable companies were in the last era and in some cases what tv networks were where you combine and do a linear network. facebook create a wonderful platform for video. it's the way lots of kids watch video. certainly the way my kids watch video now. they don't watch television anymore. it's only going to get better overtime and facebook will be a

major player there. but you have new producers creating video for facebook and snapchat and others and they'll figure it out first and that gives them an advantage. >> i have lots of questions. i'm not fully convinced but to me the key question is who owns the relationships? who owns the relationship with the advertiser and who owns the relationship with the viewer? facebook trying to own both that relationship with the advertiser and then the viewer. whether they see the programming that is professional created or they see some video that the friend put up and they're weighing each of those relatively equally. isn't that part of what the issue is here? >> what goes in the news feed? how do control that? i want to have it be different, facebook is constantly innovating it's product they will create a way to watch football and have what you can

watch and you can imagine the olympics on facebook. nbc has a very nice app. my family watched most of the olympics on nbc's olympics app. it's great. we can choose what we want. facebook created a wonderful dashboard like that going forward and could write a very large check to nbc. >> but do they want to own their own economics of this too. print was easy to get on to the facebook platform compared to video because video content they still want to get paid for it. >> smart people do not shove their heads in the sand and say things are going to stay the same way they are forever and when facebook shows up with a big enough check the smart people at nbc will say you can have it. >> maybe that's when we'll hear mark zuckerberg say expenses are going to go up again this quarter. thank you for joining us. >> great to be here. >> still to come, big changes coming to the huffington post.

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>> she is leaving the huffington post in coming weeks to focus on a soon to launch health and wellness start up. in her latest contract deal she was going to stay on as the latest editor and chief until 2019 while at the same time launching this new start up but according to the journal after a recent funding round huffington said it had become clear she could no longer run the huffington post at the same time as the other things that she is doing and this came up before the multiple activities she has going on and a lot of journalists talk about that especially being able to cover

while their leader is on the board of the company. >> the huffington post no longer just an independent entity. that was folded into aol now folding into verizon which is now in the process of purchasing yahoo! so there's a number of different people that are going to have their eyes on these assets. >> and a number of different people she would have had to report to so perhaps now that there's clear funding for her new start up it makes more sense to pursue that full time. >> yet another story of people that have done well in some area, accumulated some wealth, deciding prehaps to do something elseful. we were just talking about that when it came to google. >> we were. funny trend. when we come back we speak with one top silicon valley vc on what he's looking for when it comes to new investments. plus counting down to the european close. more squawk alley up next. when it comes to medicare,

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so, call now, request your free guide, and explore the range of aarp medicare supplement plans. sixty-five may get all the attention, but now is a good time to start thinking about how you want things to be. go long™. >> here is your cmbc news update at this hour. the obama administration is not going to reclassify marijuana or remove it from the list of the most dangerous drugs they concluded marijuana will remain in the class of drugs with no medical use in the u. s. fighting continued in an around alepo despite a russian promise of a three hour ceasefire to allow humanitarian aid. they say there has been no respite from the fighting. as we have been telling you,

arianna huffington will step down as editor and chief of the online news sight. alo bought it for $315 million in february of 2011. but back in june she announced the upcoming launch of thrive goble that she wants to concentrate more time on and a 400-year-old discovery off the coast of cape ka navral. they could be from the french colonial period off the florida coast which is about the year 1560. that's the news update this hour. back downtown to squawk alley. >> thanks so much. we are just after the european close in the u.s. and across continental europe. >> upbeat earnings and this growing opt mifl around central banks supporting underlying assets continues to drive stocks higher. in fact, the major indexes in germany and france are now

getting very close to racing all of their brexit related losses. we're looking at european stocks around the 7 week high. the lack of yield is also feeling equity. something to keep in mind. as we try to analyze the health of a european consumer, check out these two specific stocks. it's europe's biggest pure online fashion retailer. that stock up better than 5% and then there's a german based travel company. they say despite security concerns and losses it's still on track for double digit earnings growth thanks to travel to spain and grease. another retailer is pandora trading higher. elsewhere, swiss insurance company posting a 12% drop in net profits but it was less than what the street was expecting as the company presses ahead the

larger focus is the european investor around the debt market. spence identified pressure on the global bond yield. another fresh all time low as disappointing u. s. at a at a that came out this morning on the housing front and survey showing that british businesses are planning to cut back spending in response to the brexit raised the likelihood of more easing efforts from the bank of england. back to you at the new york stock exchange. >> thank you. they closed 470 millions for two new funds investing in airbnb slack and uber. what are they looking for in a tech company to bet on their future these days? scott is the co-founder and joins us here at post 9. thank you for being with us. >> thanks for having me.

>> dealing with food and skin care and ipsy. in these days where a lot of investors are being more careful about where they're putting their money, what are the characteristics that are going to determine which of these ideas continues to get funded. >> the disruption in e-commerce, we're seeing it now and we're seeing it on the emerging landscape of new companies. these three companies you mentioned have all found a way to go direct to the consumer and create a new brand for the consumer and change the supply chain. completely change the way the products or services are delivered. what does that translate to? higher margins and lower prices and convenience. they brought the shop to your door. in other words you're getting the cosmetics pushed to you and all the content and doting that

happens in a store happens in your home and you can get dermatologist and have prescription skin care delivered to you within days never having fwon to visit a doctor and they also manufacture the drugs themselves so from a cost perspective they're not going through intermediaries and they can personalize the medication specifically to you. >> but these are all asset heavy businesses. a dermatologist needs to pay back student loans perhaps. you can't bring the cost of the services down to a point where it's basically the lowest common denominator. how do you decide how much capitol to plug into the entries. >> it's a great question.

and you can get a lot more out of that single dermatologist when you create a much more efficient system than the physical system of having to drive and go see the dermatologist. from an efficiency perspective we recently invested in ipsy. they only raised $3 million and they created a business of hundreds of millions of top line revenue. highly profitable. so the efficiency is unprecedented. >> do a little ball gazing for us here. you're good at seeing what's over the horizon. we have done sharing. we're talking about some of these consumer products that you're getting into now. what's next? >> look, i don't think you have to squint very hard. five years out, ten years out to see a radically different world than the one we live in today. let's take the most obvious. uber, what's happening there? why is uber valued the way it's

valued? sure there's the business but what about the entire automotive industry? less than 5% of all automobiles in the u.s. are on the road. so you have 95% excess capacity on the busiest day. that's what uber is going after. they're going after car ownership. why do you need to own the car anymore if you can press a button and get any car you want. >> that's why they're valued at $68 billion but you're in lack and the ceo and founder of slack has blamed venture capitalists for valuations and said they have too much money to spend and there's too few good companies to put it in and they're the ones at fault for all the valuations. >> i don't know if you blal them or not but one thing that's happened is a bar belling of the winners and losers so of all the

dollars invested last quarter they absorb a third of it. you're seeing the winners really breaking out and get a lot of capital to push out the ipoment those that haven't totally broken out may struggle more. the mutual funds used to account for a third more than today of private funding. so these guys used to really lead that growth capital. they are now back at the public markets so i think that bodes well for ipos. maybe not to recall but coming up. >> there's so much more we can cover including uber's china incursion. >> thank you for having me. >> meanwhile take a look at the dow up 133 points. it just touched a new high. the dow for the last 8 days has been alternating between gains

and losses but we're seeing a strong performance and we'll keep you posted on the rest of the major averages. still to come, how one company is teaching people one of today's most in demand skills. coding but first carl is live in rio. carl what's on tap next. >> it's our chance to ask the athletes. in this case, how do you define success? when we come back from rio in just a minute. there are many things you don't want in industrial strength- like coffee. but there's one thing you do. you guys okay?! it's called predix from ge. the cloud-based development platform that's industrial-strength strength!

>> retail rebound is it believable and something to buy into. plus value hunting in tex. portfolio manager is with us for the hour today for the places to look and even though shake shack shares are falling, one analyst says it's time to take a bite. wish i could right now. he's going to join us live, carl, to you in rio. >> in today's edition of ask the athletes we ask, how do you define success. >> being better than you were before and doing things that you have never been able to achieve before. you can only mention yourself kbens yourself. >> as long as you're happy and improving yourself.

that's just success. >> it's a lot. it's everything. and come to the olympics and it means you really made it. >> and remember olympians to know they have accomplished a lot because these sacrifices and dedication that you need to even get to these games is something a lot of people will never understand, guys. >> yeah. >> of course the gold medal is everyone competing there's ultimate goal of success. maya on last night's relay they can count this is her first and only olympics because she's going to go work for mckenzie in atlanta so she will have a totally different measure of success after this. and remember in london we talked to a water polo player going to go after that.

and going to stanford and other things going on that require just as much dedication and focus. it's amazing these people all competing at the top of their sport but separated sometimes by hundreds of a second. the difference between being on the podium with gold and not being on the podium at all. >> yeah, can you imagine like how amazing it must be to have one gold much less 21? i mean, imagine what goes through his mind when he realizes he has 25 of these things stacked, 21 of them better than any other gold you can get. any other medal you can get. >> i know and seeing those athletes compete in the water, carl, is just so incredible and last night someone was joking while watching and said you should put an amateur in one of the lanes next to all of them so you can see just how good they all are and just how bad all of us civilians are. >> yeah. i'll let john come down and do that one. it will be like when rich ran

the combine. it would be totally emotions r embarrassing. >> it would be. great stuff out there. for now let's get to the cme group. rick has the san telly exchange. >> thanks, john. >> i think the best way to look at the time we were living in is broken relationships and kind of like a net tlix series. chaos is a new order. broken relationships in the financial world and they are monumental as a speak. and treasures and guilts up 3 year and ten year time frame. it's the fact that we have commoditized the financial markets. and all the central planners and the central bankers. it's not supposed to be like this. you're not supposed to break long standing relationships in a month. think about the markets for

example. if you have a really bad harvest the price goes up and you go through a whole growing cycle before supply and demand. react to the price and all the issues. if you have a livestock issue look at what lean hogs have been doing. there's a whole cycle to go through but unfortunately unlike those markets, the movements may be the same but it's not built on fundamentals. certainly not relationships of true supply and demand and what's worse trying to fix a car. when it's moving on an expressway at 90 miles per hour. sounds like an awesome task doesn't it. but that's what central planners have relegated us to. and going back that change on interest rates and then of course foreign exchange and then trade and all of this at a time where policy is a one off without any history to even handicap how the progress or

outcome may go. we are playing with tnt here and need to make adjustments. the best way to think about it is if you look at the relationship between the ten year sovereigns and think you're a multinational corporation and then you add in the political issue of the day, how can anybody make a good investment and try to plan something today that will grow into something better tomorrow. it's not happening. we have to deal with the volatility on a minute by minute day-to-day basis and it's huge. kayla, back to you. >> rick in chicago, thank you. coming up, all new ge employees learn to code no matter what their role. next up we talk to the head of the school teaching people to do just that. squawk alley will be right back.

general asem apply is a company that aims to teach individuals design and programming. the company is growing its physical footprint as it adds for companies this week. jake, it's great to see you again. >> great to see you too. >> most of the new cities you are expanding to are still in the u.s. with unemployment at 4.9%. how does that change the proposition for people needing to add new skills. >> well, the unemployment that

we're really addressing is this incredible talent and skills gap between the skills that employers need to sort of transition their businesses to the 21 century and the economy and all that goes with that versus the overall unemployment. we see a secular trend for the demand of design skills and data skills are exploding. if you look at those trends i think they overpower any kind of cyclical movement. >> you have good jobs that people are getting coming out of these programs as opposed to jobs that people can get now. what skills are you seeing in highest demand and how does that match up with the skills that the students coming into your program are prepared to learn? >> because of our position which is really in the market which is really to take people who have graduated from college and are

looking to upgreade their caree or completely change their career trajectory, we look like an alternative to graduate school. people come in with great critical thinking skills and they need that last mile of actual practical skills that allows them to add value in the workfor workforce. right now we're seeing demand for data skills and things around that to be exploding at an incredible rate. we released a report last year that showed that demands of those jobs was growing around 300% over the last three years. so you can also look at coding which is still on track although not exploding nearly as fast as dahl a data and i think you'll see this over the years to come, the skills that are needed to keep up with the digital company. >> it's easy for a company to

convince someone they need to adds certain skills if the company is willing to pick up the tab. how often is that the case and how often are students having to finance this. >> we're do both. it's the education to employment and we want to serve our students first and foremost and bringing employers as close to the mix is important. we have enterprise education clients, about 80 of the fortune 500 companies that work with us to educate their employees and they pay for that and that's long standing memberships. even if our sort of more consum consumer businesses with the campuses we see over 40% of our students in the evening and port time programs they're students are getting reimbursement from employers. consumers do sometimes make their own investment and they pay out of pocket, they go out of savings or we have

relationships with progressive lenders that help them finance a pretty short-term loan. >> let's talk politics for a moment. i'm not going to ask who you are voting for but if you had to pick one policy that would make it easier to do what you do to connect people with these jobs and get people through the door paying for the education they need, what would it be? >> if you look at the political landscape we had a lot of positive trends around the department of education even in this administration about making changes and i think a lot of those will continue because they're logical. if i had to choose a policy i would be passionate about supporting it would be to get rid of the third-party payer system and the government subject diesing every level have education and encouraging employers to have more skin in the game and giving more tax credits and more opportunities for employers to contribute to

employee's education. >> how close is your company and others like yours to getting accreditation like a four-year degree. >> because of the arch that most for profit companies have been on we've actively avoided anything that looks like title four financing or government backed financing. so we're not actually pursuing accreditation because the main purpose of that is to get that financing. instead we're really focussed on employers recognizing our credentials and our programs, if you want to hire some and we have state by state level licensure that helps make sure there's consumer protection in place. >> come back and see us soon. we'd love to see more of you. >> any time. when we come back we'll send it back out to karl in rio with a look at what's on deck in the olympics for today. we'll be right back. ♪

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welcome back. a lot of competitions tonight

and we always talk about u.s. versus other countries but tonight it's largely going to be about an american versus another american, the women's all-around of course in women's gymnastics. simone is a clear favorite to win but it could be those two teammates and then of course they're calling it the final brodown, and that's phelps versus lochte. that's going to be something to watch in addition to the judo and rowing and cycling and table tennis we get tonight. we've seen a lot of drama over the past few nights but this is about as thick as it gets. >> i can't pick one. i want them all to win. it's all about u.s.a. for me in this olympics as always. >> we have two shots at u.s. winning that.

>> that's right. by the way, golf continues. i won't give away any spoilers but i will tell you justin did just hit the first hole in one in olympic history as that sport comes back after 112 years. keep your eye on that throughout the course of the afternoon. on the markets, let's get over to scott and the half. welcome to the halftime report. our top trade this hour, consumer stocks leading the way. it's the best day for the sector in some six months. our question is the damage over and is it safe to buy or is more pain ahead? with us