>> well, yes and no. depreciation in the real estate area is a special thing. i kind of agree that this needs more scrutiny. how many people sell real estate at a loss? they deprecate it over the 39 years, and then when they actually sell it, that didn't deprecate it overall. there is a disconnect between the notion of depreciation and the reality. a lot of economists say it does depreciation but it's much slower than the schedule allows. >> how about of thmuch of this interest? >> the thing about carried interest, which trump and clinton said they would end. trump does not benefit from that. carried interest is treated as a capital gain. he had zero capital gains. >> even the people who do benefit from it now would

benefit more under his tax proposals. >> he will lower the pass through, and that will lower the capital gains so that's utter nonsense that's reform. >> jim, nice to see you today. it's 8:00 a.m. in seattle, 11:00 a.m. on wall street. "squawk alley" is live. ♪ ♪ welcome to "squawk alley,"

i'm carl quintanilla with kayla. the dow has gone positive for the week. a big day for bank earnings. jpmorgan moving higher. profit down year on year, but the company saw record income in commercial banking. citi in the green after earnings and revenue topped expectations. fixed income a bright spot, up 35% on year on year. there is wells fargo, despite the drop in income days after chairman and ceo john stumpf resigned. plenty more on wells this afternoon, the cfo will join "closing bell" at 3:00 eastern time. goldman is leading the dow. some of these metrics if you look elsewhere, other than wells, pretty good. even things like expenses working in their favor. settlements, reserves, acting more like a tailwind instead of a headwind. >> we're not seeing the massive

amounts of money banks had to sock away for potentially bad oil loans. margins are in focus but people know what they're buying. i will say jpmorgan's 15% loan growth is something people will be talking about. citi group loan growth there about 2%. they do have the costco benefit, cars and loans getting a huge benefit. analysts are writing about the ramp-up in how many cards they were able to sell. >> jpmorgan doing cross selling sales practices, saying there are no systemic issues at jpm. total assets up 4% year on year, and discussion about whether they're too big now. >> jpmorgan several years ago had a settlement in its asset management unit that it was pushing some mutual fund

products that were jpmorgan proprietary products that were less well performing, so they had the introspection a couple years ago about what products should we be selling to consumers? what is fair? what should we be doing? i think the street is commending them. talked a lot about banks. we'll pivot in this hour to some tech. >> big tech story this morning. vmware's cloud will now be available on amazon web services. how will amazon and vmware working together impact the space? pal gilsinger is ceo of vmware, and pete jassis join us from one market. guys, good morning. >> good morning. >> good morning, john. good to talk to you. >> andy, big hybrid cloud announcement from you guys, one of the knocks on amazon is that you guys were not used to dealing with full-fledged

enterprise work loads with all the guarantees, flexibilities that customers wanted. are you going to do more of these types of partnerships like this one with vmware, big player in the enterprise space? is this part of your strategy for continued growth at aws? >> we have a very big enterprise business. most of the big hybrid implementations you see out there are built on top of aws. the announcement we made together is a real win for customers. because aws and vmware were not well integrated, customers were forced with a binary decision to make of either continuing to use the vm software they like but not really be able to use it on aws in the public cloud well, or use aws in the public cloud and leave behind vmware software. with the announcement customers don't have to make that binary decision anymore. and they get to use the vm software on aws and do so without buying additional

hardware. >> pat, whose customer is this? it will be sold and serviced by vmware, will amazon get information to help them access those customers and expand their business? is it going to be you that's perhaps expanding the relationships even if they're amazon customers deciding they want to use more vmware on premise? >> yeah. john, what it is, it really is the coming together of amazon and vmware for this best of class hybrid cloud service. what we're finding is these are already our joint customers. that's what really makes this announcement powerful. andy and i were driven by customer demand. huge vmware footprints used by essentially enterprise are taking advantage of amazon. this creates a seamless hybrid experience. the specific offering is a vmware offering bringing vmware

cloud on amazon. it will be sold, supported and offered by vmware, available on the amazon marketplace, but us bringing the vm software stack, combined on the global dynamic infrastructure of amazon, with amazon services which are rich and broadly available giving a best of both worlds experience for customers. >> most people are zeroing in on microsoft as the biggest challenger to this hybrid vision you're putting more meat on with this announcement. how does this change the competitive dynamic between you and microsoft? >> again, i think that it's a really differentiated offering for customers. the vast majority of the world's enterprises have virtualized on vmware. they're used to using software, that's what they want to use as they move to the public cloud. this is the only offering that allows you to use the same software on vmware on the public cloud. also people want that concision

tent, seamless experience when they run in hybrid mode but doing without buying additional hardware this allows you to do that. >> pat, you already had a deal with ibm. why do this? >> ibm, and that relationship is going well. we're delighted with the momentum we're seeing from the ibm customers, the vmware offering we're doing with ibm is having great momentum in our joint customers and in the marketplace. however, bringing together the leader in public cloud with the leader in private cloud, as we said, was driven by our joint customers. those customers were looking for the seamless hybrid experience. some customers will use cloud a bit. other customers are saying i want to be out of the data center business. a lot of them are in between those two worlds, wanting to take advantage of this overall capability. this is what we announced with the cross cloud architecture, giving all of our customers the

ability to take advantage of many clouds. inside of that, this is a pillar offering, something that allows us to present a unique hybrid cloud experience from the leader in public and private coming together. >> a year ago one of the themes was having oracle in the cross hairs, taking them on in database, you talked about data migration, making it easier for customers to get data into your cloud. how is that going? taking it to the traditional enterprise juggernauts who are also trying hard to compete with you in cloud. how would you score your performance over the past 12 months? >> the business is growing really fast. the last financial numbers we released, it's $11 billion revenue run rate business, trailing 12 months basis growing 58% year over year. the business is growing by leaps and bounds.

what we're trying to do is enable enterprises and companies to run all of their applications on top of our technology infrastructure platform. it turns out that database is an area they care a lot about. for the last 30 years they had relatively little freedom in the database space because they have been beholden to the older guard database spaces, with punitive licensing terms, that's not what customers want. given the nature of that, we launched aurora, which is the fastest growing service in the history of aws. since january 1st of this year, we had 12,000 database migrations away from prior databases into aws. it's because customers want that database freedom they get with the cloud and awi. >> do you think you're part of the reason for oracle's new software license business not

doing so well? >> it's hard for me to say what's influencing different companies results. our business is growing so fast in the database side and on the analytic side, it's exciting for us. i think it's exciting for customers because it allows them to get much more done, much more cost effectively and quickly. >> pat, as far as how you go out and you sell this relationship with amazon and also the other priorities that you have, alongside that, are you going to be needing to put more feet on the street in order to attack this cloud opportunity and sell this relationship with amazon, given that, you know, once you talked about amazon as a threat and the enemy. it was, as you said, binary in the other direction. >> what we've seen in the marketplace over the last several years, john, is customers taking advantage of the public cloud. in many cases going faster than andy might have expected three,

four years ago. that's a clear expectation on the part of our customers. further, the private cloud, us building this automated experience that allows them to have that cloud experience in a private way. customers have pushed us to come together. that really is, you know, the exciting thing about this. customers will be accelerated it their cloud journey with a richer set of tools to accomplish that. i believes that will accelerate our business and amazon's as well because we're taking away friction from customers on their cloud journey. vmware is growing, we're expanding investments, sales forces, doing joint sales activities with amazon, both investing in this offering in the marketplace. overall that's something when customers are pulling us, it's an easy thing to sell. >> andy, traditionally q4 is a big quarter for retail. a lot of transactions take

place. that's when people need the excess capacity they turn to the cloud for what are your expectations for how this quarter will shape up cloud-wise? similar to the seasonal pattern we've seen in the past, perhaps even more so based on some trends we've seen in the macro economy? >> we're expecting continued growth in the quarter for our cloud business. the amount of demand for our various services continues to surge. we have so many customers where q4 is such an integral part of the year, and they scale in a way that's unusual. we have to make sure we services them well. we expect this to be a growth quarter for our business and customers. >> can't wait to see those numbers. certainly an announcement that's reverberating throughout the cloud world. thanks for joining us. >> john, always a pleasure. when we come back, more bad news for samsung today,

expecting to take a multibillion dollar charge over that exploding smartphone recall. airlines also taking precautions to protect fliers from the fiery phones. and apple's ceo tim cook weighing in on virtual and augmented reality. and hyperloop one landing the ex-cfo and a new round of funding. we'll talk to the founder and cfo in a moment. ♪ there's a lot of places you never want to see "$7.95." [ beep ] but you'll be glad to see it here. fidelity -- where smarr investors will always be. if only the signs were as obvious when you trade. fidelity's active trader pro can helpou find smarter entry and exit points fidelity -- where smarter investors will aays be.

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the samsung losses keep coming. the company expecting another 3.1 million in losses from the smartphone fires. joining us is re/code's executive editor joining us from d.c. hi, kara. >> how are you doing? >> how do you make sense of this, and what it does for apple, google, chipmakers? >> for samsung, it's terrible. think about the airlines, every day, every time i get on a plane, an airline is talking about how bad samsung is. don't put them away, turn them off, put them in a bag. on a marketing perspective, it's over for these phones. obviously -- it questions whether all phones will have

issues. for other phones it brings to mind the idea these things can be unsafe. right now it's linked pretty much only with samsung. they're the ones suffering for it but it creates appall over the market for sure. >> what do you expect the launch of the galaxy note 8 to look like? who will buy that? >> apparently there's foldable technology in the samsung 8, or they're pulling back on that, they have to sort out what happened here first before they move forward with over phones. they can't act like business is usual. they have not explained why these things explode. they had these issues with the replacements, everything else. this is just a completely tarnished brand, the entire brand. and the question is where do they go from here. i don't think introducing a new phone is the answer. >> i've been surprised to see the samsung fans that i know are still holding out for whatever their next phone is.

in their minds it's very isolated to this one particular phone. is it possible, if they're able to get their ducks in a row and release another couple phones that don't have problems, is it possible this is a one-time hit? or did the fact we saw the recall and then the botched re-issue show an organizational issue that is likely to crop up again? >> either organizational or they don't know the reason for why this is happening. initially i thought they handled it well and transparently. right now with the second part of the recall, and another phone having a problem, they haven't been able to answer it adequately. you know, they have a lot of fans. a lot of people love these phones. the issue is are they safe? if you're like -- flying any airline today, it gets mentioned in the terminal, on the flight, you know, that's a lot of people hearing a message that's not a great thing. the question is can they -- will they recover and call it something else? release other phones in but

it's -- it's a damage all the way around until they explain what's happened here. >> we'll have to wait and see the fallout there. next, verizon, now may renegotiate its deal with yahoo!. the top lawyers saying the massive hack of e-mails could justify reopening discussions. this was discounted early when it was reported. what do you make of it now? >> no, absolutely it wasn't discounted. they have been in talks for weeks. it's always being handled by the general council. some of the reports have tim armstrong doing the negotiations, he's not doing them. it's done by their legal council, who i just recently met. terrific guy. i think they're all surprised. and i think the issue is they are not getting much information out of yahoo! yahoo! can't give information because of lawsuits now occurring because of this hack. it's a confusing situation for verizon. they have to answer to shareholders. and the problem for yahoo! if

they go back and negotiate, it's not like other bidders won't have these questions. all the other bidders i talked to said they didn't get information about this. i'm doing a lot of reporting about when did the yahoo! management know about this. i think it's earlier on a lot of these problems than people have been reporting. >> what do you think it's worth? $4.8 billion deal. i know we're not in the negotiating room, we can't put a fine point on it? $100 million? a billion dollars? >> bigger. you can't determine what the damage is yet. these are legal damages, should verizon take responsibility for them. verizon overpaid by a factor of 5$500 to a billion dollars. everybody else was way under. the question does it come off? where does the liability go? it's a complex issue. again, they have not even gotten to the bottom of -- just like samsung, they don't know why. they don't know the particulars.

verizon certainly doesn't know them because yahoo! can't tell them that because they're not merged companies. it creates a problematic and thorny legal situation. >> kara, you think this is a watershed moment from here on you the there will be some hacking provision in these m&a deals? you better disclose as much as you can to us now or there's a penalty or all bets are off? what have you? >> that's a good question. i think some problem with yahoo! they had an e-mail problem, if you recall, right before these hacks happened. they were using very old equipment and things -- it's a longer and more complex story. i think in yahoo!'s case, some of it is preventable. and that's one of the issues, antiquated technology. i do think going forward everyone will have to be aware of these issues, and then probably build in these ideas, if hacking occurs, this occurs,

a whole new area of law. more lawyers, i guess. >> might have to have a digital blood test before marriage of these companies. >> amazing how hacking has infiltrated the election process, m&a, personal lives. where does it stop? that's the problem. >> it is. it's a really big problem. in this case, a lot of issues may be on how yahoo! management reacted. there's another layer to this. it's not oh well, it happened. other companies do not suffer in this way. that's another question verizon has and a trust factor with yahoo! management. i've heard that several times, the trust factor is broken. >> kara, thanks for your time. up next on "squawk alley," tim cook on virtual and augmented reality. no! who's gonna' help cover the holes in their plans? aflac!

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in case you missed it, tim cook loves augmented reality.

apple's ceo saying in an interview with buzzfeed that he's excited about the implications of augmented reality enhancing the himeuman experience. cook has previously stated apple is high on ar. he did add there is no substitute for human contact. >> awe. >> not that revelatory. >> have been a big headline had he said otherwise. >> it also places them interestingly opposed to samsung, which is invested in vr, the partnership with oculus, the head set. he seems to be saying we're not interested in catching up to them, we want to do something different. >> asia had a good session overnight on the back of the chinese cpi number. seema is back at post nine. >> that's right. european stocks eniding on a

higher note. for the week, european financials underperforming the european benchmark as investors keep a close eye on the health of deutsche bank. you can see the banks also underperforming the s&p 500 as well. however, one stand-out sector for europe are the miners, which continue to move on chinese data. yesterday lower on export data, today the micners are higher on inflation prices, headed higher for the first time in almost five years. it goes to show how reliant miners are on supply and demand from china. higher by 2%. good news for the auto industry. european car sales hit a new record high for september, passenger car registrations up 7.2% from a year ago. italy up more than 17%. spain posting a 14% gain, followed by germany and the uk.

as far as sales goes, fiat chrysler and renault among the best performers. bmw and daimler leading the pack for germany. volkswagen, sales there rose 5.2% last month, retaining its position as europe's biggest car maker. m&a news, reuters is reporting that syngenta and chemchina will ease antitrust concerns over their merger and that the companies will meet with regulators over the weekend and monday to make an offer if they're not able to ease concerns, perhaps further demonstrating the willingness of these two companies to make a deal happen. up next, treasury secretary jack lew on the health of the u.s. banking system. what he told our sara eisen. all the markets are higher by a third of a percent on the s&p and nasdaq. the dow up more than a half percent, led by goldman sachs

and intel. more "squawk alley" in a moment.

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- airbnb has helped me so much financially especially starting my own business. san francisco is such an expensive place to live. the way people work and travel is changing. the guests are now able to stay longer, stay five days, enjoy another day in san francisco and spend more money in the neighborhood. my guests are able to extend their stay and spend more money on activities and restaurants. - the extra income that i get from airbnb has been a huge impact in my life. good morning once again. i'm sue herera, here is your cnbc news update. secretary of state john kerry is in rwanda to attend a conference

on climate change and reducing hyd hyd hydro fluero carbons. the obama administration says it is eliminating a $100 limit on the value of cuban cigars and rum that americans can bring back from the island. it will now be subject to the same duties as alcohol and tobacco from other countries. u.s. travelers can now bring back thousands of dollars of those cuban products. a mandatory evacuation order has been issued for 500 homes near south lake tahoe in california because of a nearby wildfire that broke out this morning. the fire is fanned by winds of to 50 miles per hour. a gorilla escaped from its enclosure from a london sioux. the 400-pound male gorilla escaped into a secure keeper's area which posed no danger to

the public. you're up to date. back downtown. kayla, back to you. look at wells fargo shares, which have been positive for much of the morning but turned negative during the company's conference call despite the fact that earnings beat estimates. tim sloan saying he's deeply committed to restoring the trust of share hollers, wilfred frost has been monitoring the developments back at headquarters. >> yes. the new ceo, tim zone, at the top of the call said his priority was to restore trust. he admitted that things are likely to get worse before they get better. insisted that we would not see a real change in transparency from the bank. on that, here were some of those figures. checking account openings declined 25% in september compared to the same month a year ago. account openings were down 143,000 from a base of 33.2 million. citi's analyst saying he doesn't

see the numbers overall as impactful. the analysts still want more. for example, mike mayo asking a pointed question about why analysts have not been given access earlier and more information sooner and on today's call. sloan on the defensive in his response. >> i'm sorry that we've disappointed you. we spent 30 minutes talking about the company, sides providing tremendous detail on the sales practices issue, and we deliberately and diligently walked through the performance of our businesses. if that doesn't satisfy you, i'm sorry. >> back to the earnings. shares of the banks have all slipped from earlier gapes, despite all three names beating on the eps line. citi and jp doing so more than

wells given their trading exposure which performed well. kayla? >> thank you very much. busy morning. the u.s. treasury releasing new rules on corporate taxes. sara eisen spoke to jack lew in a cnbc exclusive. take a listen to what he had to say about the state of the banks. >> i think that european banks are in a better place than they were before. they are better capitalized. we saw stress tests at the european banks with better results than would have been the case before. but we've done more in the united states. we've built up more capital, done more in terms of resolution. >> we're one country so it's easier. but we have banks that are more resolvable. >> we still have questions about the u.s. financial system. bad behavior, banks. i know you spoke about the wells fargo situation. does stumpf resigning matter?

>> the decision about who should be ceo is for the board and the executives of the company. i think what the whole set of events around wells fargo shows is that anyone who thinks that it's yesterday's problem to worry about whether there are abusive practices, whether there are predatory practices, it is still an important issue for today and tomorrow. you know, we created a consumer financial protection bureau that is a cop on the beat now. it has levied a large penalty in this case. there are some people who want to roll it back, take its power away. i think it's a mistake. we saw in 2007, 2008 how bad practices, bad consumer practices could actually accumulate and contribute to a financial crisis. >> certainly when it came to assessing a fine for wells, the largest one that the cfpb put forward so far. >> as he described a cop on the beat. interested in delivering alpha,

when asked why there had not been guilty pleas, he said that's up to prosecutors, we're waiting to see what does come from what prosecutors might be looking into at wells. >> we'll hear from sara's interview with lew throughout the day. when we come back, hyperloop one getting a $50 million round of funding adding uber's former cfo to the company. he'll join us with the co-founder after the break. we're droing in information where, in all of this, is the stuff that matters? the stakesre so high, your finances, your future. how do y solve this? you don't. you partner with a firm that hadvises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley.

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. coming up on the half time report, with the return of volatility, are we likely to see a correction or a rally? and what will be the top performing internet cap stock for the next 12 months? also the huge week next week starting monday to celebrate our fifth anniversary. we will have some big names, you can see them on your screen. starts monday. see you today at the top of the hour. carl, see you in about 20 minutes or so. >> that's a big line such. thanks. uber's former financial wizard has joined hyperloop one, joining as not only full time adviser to rob lloyd, but also the board of directors. so, what's next for hyperloop one? we'll find out, shervin pishevar is the co-founder of sherva capital and brent callinicas is

chief financial adviser of h hyperloop one. >> good morning. >> good morning. this chief financial adviser role is interesting. why not come on as cfo? >> yeah. it's a good question. the title, which shervin came up with, captures what i will spending my time on. i will be advising rob josh, shervin, the board on the moneyization model, the financing of the projects, the ecosystem, so it captures i will be not less narrowly focused, but focusing on several areas initially. >> brent, i know you're just getting started what do you see as the unique financial attributes of a project like this with its sort of futuristic never been done before sort of character? >> what's not to like about that, right? when i left uber, i had the

opportunity to join a lot of amazing companies. when of the opportunities was in the series b of hyperloop one. i've known shervin for a anybody of years and rob for over a year. concurrent with my move to l.a. i decided the best way to help this company was step in with both feet. you're talking about a company that is solving massive problems that are on a global basis, that are not just now, this is very real. but you're solving problems for future generations, how many opportunities do you get to change the world? it was an opportunity i had to say yes to. >> shervin, i know lawsuits are sensitive. you have one going on. one of the co-founders. how important is it for you to get key talent into place at this stage where people might have questioned what hyperloop one will be like as a going concern? >> absolutely not. we're focused on the future. we'll make history in q1 of 2017

with the first full scale hyperloop working in nevada. today's news of brent joining us is incredible validation of the kind of talent, world class talent we're able to recruit to the company from the engineering staff that's over 200 people to rob lloyd, who was president of cisco, and now brent, former cfo of uber. we were lucky at sherpa, havi havinghaving gotten to know him, watched what brent did, he's a financial genius, treasurer at google, microsoft, he raised billions of dollars at uber. we're excited to see him with our team full time, helping us guide our vision. and our execution and our operations going forward. >> talk about the significance of this dp world group.

i don't know whether to call it a debt raise or -- basically putting money into the company. third largest ports operator in the world, i believe dubai is known for big investments in infrastructure. what is their dream and how important are they going to be specifically in how you start to roll out this technology? >> absolutely. cargo has been the vision for this company from the first days i founded it. to be able to move cargo, the atoms as fast as possible as the bits. that's the vision here. dp world is an incredible partner and now investor and board member and sultan, the ceo has joined. he's a visionary. they operate and own 40 ports in 80 countries around the world. most likely we'll be breaking ground on some of these cargo

loops shortly in the future. it's a massive achievement to really get them on board with us. and also we've got zia from suma group joining us who owns ports and does logistics from around the world for suma group and caspian adventures. >> we talk about jobs that change the world. we don't even know how uber is going to change our lives fully yet. people are still trying to understand that. i wonder, hyperloop, uber, which job do you think changes the world more? >> i think you're -- we're headed to -- honestly an autonomous ecosystem. these are all pieces of the puzzle that are solving the problems that we're talking about. all you have to do -- i've now moved to l.a., all you have to do is drive around on the highways and see near ports how many trucks there are, how many congestion there is. the whole process, even if you have a short flight of going

from one place to another. between commuting to work, commuting to different places, all of these are key parts of what we need on a worldwide basis to solve this problem which is not getting better. >> brent, when hyperloop first started coming up, people were talking mostly about moving people around. now the conversation seems to have shifted very much towards moving stuff. is that where this business opportunity will be at least for the first decade? mainly moving stuff versus people? >> i think there's both. honestly stuff is probably first. people follows shortly thereafter. you're talking about a trillion dollar market opportunity in both and massive problems in both. so, you know, we're going after both simultaneously. stuff will probably be first. >> people don't realize, john, that the top 15 cargo ships in the world pollute the world more than all the cars in the world.

this is a very serious problem. and working with companies like dp world and ports around the world, we're going to be able to solve a lot of those issues. we're also excited about moving those 8,000 trucks just in long beach port, for example, off the highways. you know, move it to an off-shore port. and an in-shore port. we're excited about changing the dynamics of the movement of goods around the world and making it much more efficient and cleaner for the world. >> that is a tremendous environmental impact. i will go look up more stats on that. how soon before hyperloop one will quickly be ability le to h impact on that environmental problem? >> the team is working incredibly hard. josh giegel, my president of engineering is out there with the team in nevada.

he was just in dubai as well with our study also for the port. we are heading straight to making history with our kitty hawk moment in q1 of 2017 the world will see the first full scale hyperloop working with cargo. >> a lot of people said it wouldn't be done. you guys are working on it. shervin pishevar and brent callinicas now of hooperloop one. up next, stocks in the green but off the highs of the morning. rick santelli, what are you watching today? >> i'm watching data. we had a lot of data today, on the surface it has a certain appearance. what we'll be talking about after the break, is how to use a shovel. see you after the break.

>> let's check in with rick santelli and get the santelli exchange. hey, rick. >> hi, carl. you know, it's been a big couple of weeks for the markets, whether you are looking at stocks, which seems to be avoiding the down side today, which has been unusual as of late or those stubborn treasuries. you know, the break-out levels of 71, 73, 174, we've leapfrogged notices on a closing basis. it's going to be very important what we do today on a weekly basis. you prioritize closes. close the most efficient price of the day, and then when you

move that concept regarding time, the week, the month, the quarter, the year, they even become more important. as far as today's data, i talked about on the surface, especially on retail sales, didn't look too bad. listen, we want growth. we need growth. he need a bigger pie to satisfy all the needs of the country and its citizens. when you dig down a little bit, you look at things like korea tail sales, that's building materials, what, autos, gas stations, sales, food southwests, we're left with 2.5% year-over-year. that's the weekest growth leveling, and november is key today because if you go to the fall of lasts year, we had the weekest university of michigan basically since september of last year. the five-year growth on retail sales, five years, 3.5. if you look at the 1990s it was closer at 6%. it isn't necessarily the only news.

elizabeth warren calling for the firing of the s.e.c. chief. i really don't like politics, but they also miss with the markets. sometimes they don't mix with the marks enough. scott cohen does something that we love. america's top state for business. senator warren is worried about money and politics. it's all they seem to be worried about in the political season is money, but it perpetuates the commercials and the campaigns. money, money, money. not how much money the people in the state are making. you know what massachusetts was ranked in scott cohen's great work? number -- drum roll please -- number 46. 46 in terms of costs of doing business. all of the other web sites i looked at had it anywhere 23r 46 to 49 over general health. listen, i know all these things are important, but maybe people

we elect should actually go there to do something about the economy of their state and the people who live in it. what a novel idea. carl, back to you. >> we do love scott's work. thank you so much. rick santelli. getting breaking news on deutsche bank this morning. this is coming from will fred frost back at hq. the government ruling out state help. >> carl, thanks very much. the european shares of deutsche today close flat. the adr stateside just dipped about half a percent on the back of the story. as you say, the government report saying that the government has ruled out state health of deutsche bank using the word that it's inconceivable that the state would help from a source in saying the deutsche bank should be able to raise capital in the market themselves. that is, in fact, why we haven't seen a bigger share price reaction because earlier this week and last week they did raise a little bit of money in the bond market. also pending asset sales. despite a big headline word, the debate on deutsche has moved on in recent weeks. they're trying to raise capital themselves and get this doj

sorted out. we are off half a percent. >> we are still waiting for that settlement. with i will fred frost, back at headquarters. thank you. an interesting ruling on uber. what it means for the company's bottom line? ♪ ♪ look out honey... the highly advanced audi a4. ♪ ♪ ain't got time to make no apologies... ♪ with new cabinets this wfrom this shop,house, with handlesesigned here, made here, shipped from here, on this plane own by this pilot, who owns stock in this company,

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>> uber back on defense after a rare ruling in the empire state. the new york department of layer ruling a former uber driver is available for unemployment insurance making him the second of some 35,000 new york city drivers to be deemed an employee of uber versus jug an independent contractor. companies appealing the ruling saying that 90% of drivers, the because they love being their own boss. important to note, uber does not contribute to unemployment the way a traditional employer does if a driver gets benefits, it would be from the state. again, complexities of the economy. >> the threshold for unemployment is different than the threshold for other things, whether you are an employee or not. it doesn't mean that collective bargaining, they're going to necessarily be able to form a

union, but if those sorts of things happened, big costs potentially for uber. >> yeah. market has come down as oil has come in as well. get some rest this weekend because next week a lot more earnings and a debate as well. have a good weekend. over to wapner and "the half." all right, carl. welcome to "the halftime report." i'm scott wapner. the markets at an inflexion point. stocks may be rising today, but if this weeks proves anything, volatility is back in a big way. is a correction coming or a fourth quarter rally? that debate begins right now. with us for the hour, today john najarian, steven weiss, sarat, and erin brown is here as well. she's the head of macroinvestments. courtney gibson. >> hey, scott. >> melt up. melt down. what's coming for the market? >> it's a melt up. it d