good morning it's 8:00 am in california and it's 11:00 am on the east coast. "squawk alley" is live. ♪ joining us from palo alto, roger mcnemie. good to see you again. shares up 19% for netflix, 3.2

million subs, compared to that guidance of 2 million. the company beat up earnings in revenue. reed hastings last night talking about competition on the call. >> we had a great couple of years at these price points and there's a lot of competition entering the market. we're focused on increasing value by having more spectacular shows so that people watch more of netflix. >> lot of analysts are struggling how to value these guys. is it a cash flow story? is it a mushy hit maker story? what's your take on this? how do we know what -- where it's going to go. >> people were short the stock yesterday. obviously we're seeing major

shortcomings. carl, i think you've actually frame this had correctly. this is an unbelievably difficult company to analyze quarter to quarter. i have a rule of thumb, never bet against netflix or reed hastings. that said it's extremely difficult to forecast what's going on here. essentially the u.s. has reached some kind of maturity and the rate of growth there is modest at best. and the cost of the programming designed to keep the customers in is rising. so, those two things -- you sit there and go, wow, that will be hard for the stock. good news, though, is that they have very low penetration overseas. in this quarter they show enormous growth in new subscribers overseas. that's the really, really, really good news. as i said, these guys have shown themselves to be smarter than people expected, literally from the beginning. there hasn't been a fluke about anything they've done. it was a tiny little company going into a world dominated by

cable companies. it's blown them all away. what's really impressive is that -- at least to me -- remember how we used to talk about this idea that the smart phone market had gone from an adoption phase to adaptation, where the rest of the economy is adjusting, there are very few companies that have adapted to the universal ownership of smart phones better than netflix. overseas, that is a gigantic advantage to them, the fact that people can use tablets, phones, can use apple tv in any device that's out there to watch programming. and i expect them to be successful. i don't see how you get the bumps out of the road, though. from quarter to quarter, i think this will remain tough which makes it a hard stock for me. >> they have been investing for that tipping point overseas. hastings says material global profits are what he expects as soon as next year. is that enough to hang your hat on internationally? >> i'm saying for me as an analyst, i like stories where i

can -- when i make a bet that's out of favor, i get a pretty good long ride out of it. historically, netflix has been able to deliver that. i've never been able to get the pivots, those inflections right. i think he's correct. the international markets, they will be more successful there than the skeptics think. to me, the real question is that their costs come in, in advance to the revenues. they're making better and better -- stock will remain volatile f you're a trader and like to play things that way, this will remain an attractive stock. for me it's just too volatile. >> the real question is, though, by the end of 2017, netflix should be approaching 100 million dploebl subscribers. >> yes. >> who are paying every month. varying amounts but paying for the service. once you have that loyal base of users and subscribers in this

mobile economy, what more can you do? amazon isn't amazon just because they're good at selling books. amazon is amazon because jeff baytos had this vision that once you can make this based on data you can do so much more. what's that next leap for netflix, from mailing out movies to streaming, what more can they do on that subscriber base of around 100 million? >> carl, let me ask you a question. did you see smart phones as a viewing platform coming two or three years ago? i sure didn't. and, you know, at that time, the band width constraints in the cellular world were such that having high quality hd viewing experiences was a dream not a reality. now it's a reality. >> did you? did you see it? >> no, i didn't. honestly i'm impressed how well they made that transition. i would not exclude the possibility that one size fits

all. i'll give reed hastings having understood this market and his team better than anyone else who is out there. all the disadvantages that they've had, they've overwhelmed by just being smarter than other people. i do think they have a chance to be smarter about pricing going forward. so i think getting to 100 million really matters. and i don't know that that's necessarily the end. if they make programs that are attractive enough, they're going to get paid for it, the same way that hbo has. >> right. one last thing on this, before we move on, in a word, do you believe that subscriber data and machine learning can make them better programmers? in other words, better creators of hits than your traditional legacy network? >> definitely. they've already shown that, indisputably. >> all right. we'll see where that takes them in the future. next up, roger, samsung setting up exchange booths at airports around the world, hoping to stop people from bringing the phones

on flights. letting owners swap note 7 for a new phone with employees on hand to transfer all your data. they're available before security screenings in australia, korea and in some places like san francisco. if i had told you this was coming a couple of months ago, it would have been hard to believe. >> right. >> carl, the airport is the absolute point of the marketing breakdown for samsung right now. it's the point where everybody is reminded that has a samsung phone that you're going to be singled out to have to, i don't know, put this thing in a fireproof bag, wrap it in asbestos, whatever you do. everybody who doesn't have a samsung phone is reminded i don't know what model that is but it's not samsung and i don't want it. hopefully they'll be success skesful swapping out these phones and people that have them will see this as a positive interaction because it could help turn this around for them.

>> is there any way they view this as a positive interaction? >> no yeaway. >> if the service is really good, don't you think it's possible that people who are samsung fans and loyal say that's nice they swapped out my phone here. i wanted to use it on the flight? it's better than getting on the plane and getting shamed or stopped at the gate, even worse, and being without your phone when you land on the other side. >> getting on the plane and having your phone blow up, it's better than that. i don't think it's better than anything else. sadly, samsung is creating a new business school case, replacing the pinto as possibly the worst handled consumer interaction on a product failure. i don't think we've seen the end of this. i'm with carl on this. this is an unmitigated disaster. putting this thing in airports is just going to say if samsung,

then problem. i suspect this is the first part of this story that might have a ripple effect into their other product categories and, you know, i just -- i feel really bad for them because they have made a lot of very, very good products but people cut corners on this one. they're being -- you know, the people who bought the products are being punished horribly and the company will be, i suspect, carrying the legacy of this for a long time. and i really don't see a good, happy ending to this at all. i mean, look, it's a big company. this is not going to kill them. >> i was going to say. >> they're very smart people. they're going to figure this out. this is going to hurt their smart phone business which, let's face it, they were the world's number one and they were making a lot of great products in a row and they had a lot of happy customers. this is a horrible reminder that people who were sloppy, you know, can cause a lot of trouble with technology and that's what happened here. >> but this recall, roger, has been going on for weeks at this

point. how long do you think it will actually take them to collect all of the galaxy note 7s that are out there. if people have been paying attention to any type of news, they would have known that this was happening and yet still they're having to put these kio kiosks up at airports. >> as we've seen in some other areas of our life, politics and other places, that some messages take a long time to get through. and, you know, in this particular case, you know, this became -- you know, you go on the internet, the number of meme images, making fun of samsung and exploding phones is so large that i fear that even when the recall is done and all the phones are gone that the memory of it will last a very long time. >> would have been easier had it been a mediocre phone. people love this had phone. the best reviewed phone. they don't want to let it go. i didn't personally try it but the reviews were off the chart. >> they were.

>> people don't want to let it go until they have to. >> if you like this, you're going to love the note 8. >> exactly. now with fireworks. >> roger, thanks so much. good to see you again. >> some economic data moving the markets this morning. steve liesman is back at headquarters with a rapid update on that, steve. >> kayla, we have a debate on wall street about the just completed quarter strength of growth and rebound in the third quarter. i want to see the cnbc rapid update. we are the only ones who put together the tracking forecasts. unchanged after the inflation numbers this morning. look at that range there, folks, 1.9 to 3.1%. pretty big range, pretty big debate about the strength of the just completed quarter on wall street even though the quarter is complete. 2.4% is the forecast for the fourth quarter and the actual second quarter which was 1.4%.

moving down morgan stanley, 2.8. happy to welcome bank of america to the forecast. 2.7 and much followed atlanta fed at 1.9%. one more chart. we tracked the atlanta fed over the quarter versus cnbc rapid update. atlanta fed started much higher and disappointments on the consumer stepped it down. cnbc rapid update because it has more people in it tends to be more stable and didn't start as high. you have this debate our number, 2.6%, atlanta fed much followed gdp number at 1.9% and still, carl, a bit of data to go. clearly it looks like the best we can do is a mediocre balance, bounce back looks like it's fading in the rear view mirror there. >> steve, thank you for ta. >> sure. >> steve liesman. lionsgate says it will produce a new live show based on the game

candy crush. joining us live, plus a strong gain for goldman and new ceo at visa. what you need to know about both companies. we'll talk about big blue when "squawk alley" continues in a moment. there are many things you don't want in industrial strength- like cologne. morning! but there's one thing you do. (gags) it's called predix from ge. the cloud-based development platform that's industrial-strength strength!

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now, charlie scharf announcing he will be stepping down december 1st, saying he can no longer spend enough time in san francisco to, quote, do the job effectively. his family is based in westchester in new york. he will not be receiving a severence package. he does not have a noncompete agreement. he told investors he will stay on to assist with the transition to visa board member and former member at american express, alfred kelly. the company said no change to the business outlook. it will discuss that in more detail when it announces earnings on monday. shares have been surging throughout the morning after third quarter earnings on the top and bottom lines. thanks to strong gains in trade ing revenue. bank of america during this

earning season. profit surged 58% last year saying, quote, we saw solid performance across the franchise that helped counter typical seasonal weakness adding that the bank continues to manage its balance sheet conservatively and is benefiting from the breadth of our offerings to clients. another thing mentioned, brexit could drive market share to the u.s. banks, which are in a relatively strong position and marcus, their online lending platform will provide more information when they have it. they just underwrote their first loan last night. >> some wondered whether or not the results were so strong that the argument for going for a more consumer oriented product offering is less important now, right? because trading was so robust. >> it is so cyclical and so

choppy. you never know what events are going to drive clients to you being able to see goldman benefit from its own balance sheet, not having to sell loans to third-party investors which is something that lending club and others are struggling with now. >> all right. up next, a day in the red for big blue. not a great day for ibm. shares falling despite tax assisted earnings. more on that when "squawk alley" comes right back. can a toothpaste do everything well?

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shares of ibm, third quarter results for the top and bottom lines. on the positive side, software did well, up 3%. that's the core revenue and the classic ibm model. newer offerings like cloud computing and also artificial intelligence saw growth. now the bad news is that the past three months mark the 18th straight quarter of falling revenue. company cfo was on closing bell

yesterday, talking about the future and growth and watson. take a listen. >> watson is, for us, the future of cognitive. it's not just watson platform. it's showing up with how we deal with our health business, in . r it's how we see the future of cognitive within ibm. >> if ibm had a dollar for every time they talk about watson making money they would have more money on the balance sheet than they do now. looking ahead to intel, chip maker report iing earnings, getting an up grade at barclays. intel indicated this looks better than expected. that's a contrast from last year when people had a lot of pcs in the channel and had to get those out before the oems could sell. i think the question is, when the intel talks about the

holiday season and beyond, is the emphasis on low inventory or higher demand? higher demand would be better news than just saying, hey, there aren't a lot of pcs on the channel. we'll have a better q4. >> wouldn't necessarily be pointing in that direction but they also haven't for a long time. >> that's right. overall, those numbers are not looking strong for the pc market as a whole. in the u.s., though -- actually, the pc market looking healthier. corporate pc market benefiting players like hp. u.s. laptops doing pretty well. that's why intel is interested in getting the likes of michael phelps to try to entice people to buy pcs. we had a new commercial featuring that olympian, of course. >> it would be nice to layer demand on top of that. >> certainly. >> we'll get that today. donald trump's recent comments about a rigged election is sparking debate about whether the country's voting machines are safe from tampering.

aditi roy is live in san francisco and has been taking a look at that. aditi, what did you find? >> hi there, kayla. good news is that one expert we talked to says the possibility of digital tampering is remote since most machines aren't connected to the internet. research shows the technology behind most of these machines is grocery outdated. 43 states have machines that are at least a decade old according to a nonpartisan policy group. 33 states have accepted help for cyber scan and most machines are running on outdated software like windows 2000, according to gregory miller, co-founder of the ocet institute which works with election officials to update infrastructure. >> the largest problem here is the pc-based equipment is built upon technology that is not only

a antequated, it's flat-out obsolete. spare parts from asia and software patches from eastern europe. >> three main companies provide a vast majority of voting machines for u.s. elections. they are es & s, dominion systems. but there's little market incentive to innovate, given the lack -- voting machine technology is outdated, trump's accusations of large-scale voter fraud don't hold up. recent study at loyola law school cast between 2000 and 2014 and found only 3 instances of voter fraud. >> that is a very low percentage. aditi roy in san francisco, thank you. lionsgate announcing a new show based on candy crush coming soon to --

stant. your 3 o'clock is here. but there's one thing you do. it's called predix from ge. the cloud-based development platform that's industrial-strength strength! what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley

i'm courtney reagan. bringing a galaxy 7 note on to a plane could earn you some jail time. passengers caught flying with a fire-prone device could face up

to ten years in prison and be liable for nearly $180,000 in penalties. where in the world is bob dylan? the nobel panel has been looking to give the singer/songwriter over $127,000 but can't find him. he was awarded the nobel prize for literature by the academy last week. daring rescue on lake michigan. wind surfer was plucked from the chilly waters after calling a friend to say he was in distress. the coast guard found him a mile offshore. chuck berry says he's going to keep on rocking. the music legend is celebrating his 90th birthday by announcing he is coming out with an album. berry, "johnny b. good" and "roll over beethoven" expects to release an album next year. it's hard not to sing when you say those. >> it's your cousin, marvin

berry. a very strong session for european equities over 1% for germany, france, spain and italy. there was a sphere that the european bank would be less accommodating but that does not seem to be a factor in play today. although the recent inflation figures out of the eurozone and uk. consumer prices rising by 1% to a two-year high. some economists saying this is a first major sign of how the brexit is impacting uk households, some suggesting the weaker pound driving import costs from manufacturers. now sticking with the uk, let's talk luxury. burberry in focus. it did focus a first-half decline. interesting comments, burberry saying it is seeing a challenging external environment. that stock moving to the downside.

ftse is european indexes and that sector as a whole will be in focus as the countdown continues for the china gdp number where economists are expecting the economy to grow by 6.7%. heavy exposure to china. so keep a close eye on these names. meantime, italian prime minister mateo renzi making an official visit to the white house. they're waiting for the two leaders to make a statement at the rose room, strategists saying they're hoping this visit will enl bolden renzi's position ahead of the key referendum in italy december 4th. back to you. >> thank you, seema. >> content war showing no signs of cooling down. julia bornsten is in new york. >> i'm joined now by michael burns, vice chair of lionsgate. far better than expected results

for netflix. does their success come at the expense of a company you just acquired, starz? >> someone asked me are they a friend, enemy or frenemy? what they really are is a customer. we're finishing up season one pickup, "dear white people," we've had great success with them over the years with shows like "orange is the new black." i've heard over and over again, are all these carriers ultimately going to want to own all their shows and i will tell you that when we have a show that a bunch of buyers want, we typically get a deal very similar to what we're looking for. >> netflix said last night very specifically they want to move away from licensing shows and producing the shows themselves so they can own it. you can sell "orange is the new black." they don't want you to be able to do that. won't that move to producing

their own content be a negative for lionsgate? >> i heard that over a decade, these channels or platforms say they want to make their own shows and when we have a show that they want to have, they typically give us the deal we're looking for. we're a benevolent arms dealer. we'll sell to anyone. we usually have competition for our show. >> john, want to jump in here? >> i do. good morning, michael. i want to ask you about this candy crush show that i understand lionsgate has been working on for a couple of years now, an hour's long. i first read this and thought really, seriously? what separates the type of game that you can turn into a live action show and one that you can't? this seems puzzling. >> if you take a look at the partnership at cbs and i would argue probably the best media executive in the world. so the combination, three-way deal between ourselves.

king and cbs, we think this potentially will be a hit show and it's an unbelievable brand with over, you know, a billion players. >> now you have been making -- you have a new initiative to go direct to consumer by selling your shows through vimeo and trying to go direct to consumers with your starz app. there's so many other players you're competing against, amazon, itunes. how can this succeed? >> if you take a look at amazon, for example, we're very excited. we've got a show in development with them, the bob dylan show. nobel laureate, bob dylan. there's plenty of room for all these players. hit show on hulu, which is casual. netflix, we talked about them earlier. too much television and maybe that's true. there's never enough great television. we look at this and we say we can -- there's room for over-the-top players.

there's room for skinny bundles and big bundles. we like the idea, if you take a look at the theme that john and i have been pursuing for a long time, try to get closer to the consumer. and whether that is the starz app, which we're very pleased with how that's doing -- the over the top, which they're selling through amazon. and, again, the traditional msos that they're doing very well with. we think there's plenty of room. again, if you have differentiating content on those platforms, you can make them work. >> the big question here, though, is what's going on with your stock? it's down over 40%. over that period you acquired starz. >> i think the market hates uncertainty. we didn't have a particularly great year theoretically last year. we had a couple of misfires. you have to take a look at the history of this company. 80% of our contribution was coming from the very volatile motion picture business. the nice thing about it right now, 16,000 titles, television

business as well as obviously the starz deal, 80% of our contribution will be coming from very reliable cash flows. and if you take a look at the film business, that give you the optionality. hunger games, you can make a ton of dough. >> concern that you don't have a big franchise like hunger games. >> again, we're developing what we think are potential franchises, monopoly, king killer chronicles. again, remember that if you take a look at the history of the business, look what warner brothers is doing with harry potter, the extension of that. core franchises that we're now monetizing. that lives on and on. we feel highly confident that we're going to come up with another franchise. but again even without that this year, it's going to be a much better theatrical year than it was last year. >> kayla? >> michael, this is kayla tausche at the stock exchange.

a gold rush for media companies the last few years. we heard last night netflix saying the regulation of foreign content have become too ownerous and is ruling it out for now. how does lionsgate feel about it? >> it's a nice position to be a free agent. so we can license our content to a variety of places. "orange is the new black" is streaming inside of china. we have a great partnership there with a slate deal with tik/hunan. we'll probably end up doing another slate deal in china. that marketplace is terrific for us. even some movies that didn't do particularly well domestically like "gods of egypt" "now you see me," $66 million domestically, it did close to $100 million in china. >> i know we don't have time but you signed on to a big deal last night to make films in china. why move those overseas?

>> it depends which jobs you're talking b typically we'll chase the money, whether we're shooting "deepwater horizon" in louisiana or whether we're shooting television shows in new mexico, new york. we're looking for the right opportunity. we'll employ many americans, no matter where we shoot a particular movie. you take a look at the theatrical business for us. we're in 7,000 screens this weekend with a variety of films. >> michael burns, thank you for joining us, vice chairman of lionsgate. over to you. >> julia bornsten. thanks to michael burns. shares rallying and on pace since november last year. we'll talk to a top shareholder and analyst in a moment. rick santelli, what are you watching? >> i'm watching yields, fx. we'll have an interesting piece coming up. i'll give you a clue as to what it's about. go way back in the way back machine. tony orlando and dawn, how it

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do not miss the half time report. 15 minutes away, john.

ceo reed hastings says it will double down on original content. netflix investor and rbc capital markets lead analyst mark mahaney. gentlemen, thanks for joining us. >> thank you. >> i want to start with you, joe. when you look at netflix and its potential to grow from here, clear clearly, international is how do you judge netflix, does it just focus on monetizing this plan right now? >> like we've said for a long time, you have to look at the long term, big picture. if you're just going to own the stock for 90 days you might as well flip a coin. over the next three years, they

launch 130 countries at the beginning of this year and international opportunity, we think, is five to seven times larger than their domestic. >> mark, how did your view on this company shift between last quarter and this quarter? last quarter, there was a lot of negativity around that subscriber miss. this quarter they seem to have sort of made up for it. i know that you have been on this stock for quite a while. how do we read the difference between these two quarters? >> two or three things really came out. one was that they did have elevated churn in the june quarter. they acknowledged it and had to do with the fact that they were pushing through pretty big price increases. this quarter was kind of an abatement in that churn. but we're not done yet. i think they still have more churn to deal with in the december quarter. then you have kind of a clear read into next year or until they do the next price increase, which is probably a few years out. i think that was takeaway number one. takeaway number two, in

international markets, the ability to generate as many sub ads this year. big picture number here, there are 1 billion paid tv subscribers worldwide and 100 million paid streaming worldwide. those numbers, long term, can probably reverse and netflix is the leading playoff. we like the stock. >> we had hoped that another increase would be just around the corner. hastings talked about humility, value. what did you read from that? >> oh, trust management to make the right decisions for their customers. i think this is a customer assessed management team. they're always going to form the best product whether it's content, price and really focus on building that level of trust that they have already established. >> mark, what is the core benefit that netflix has? is it this 80-plus million

subscriber base that they're able to get data from and be able to tell what they want to watch next and thus make smarter, more efficient investments in content? is that really the pivotal point there that we should be looking at? >> john, it's the right question to ask. there's probably a little bit of that. it's hard to know externally how well those algorithms are working at getting better and better content in front of us. they probably know more about the actual usage than any other video entertainment vendor. secondly, it's scale. 80 million subscribers are paying them ten bucks a month roughly. cycle back into more content. virtue use cycle that's awfully hard for somebody to catch up with. last point comes up with bearish concerns about a hits driven business. it's not. the more hits that they can roll out, the deeper that library is, the more compelling the value

proposition is. this is a scale business. scale matters. far and away the leading player. fundamentals should continue to strength going forwards. >> finally on china, is that considered a setback, that the entry into that country does not look good, in their words? and is there -- what's the time line you would expect them to try to make that work? >> we think -- obviously, it's a huge opportunity. the company is still going to pursue it at some point. we're encouraged that they're taking a thoughtful approach. we've seen other companies try and act aggressively, enter the chinese market with mixed results. see them taking a conscious effort, understanding different nuances and finding a right way to gain those consumers. >> all right. joe dennison and rbc's mark mahaney, thanks for joining us. >> thank you. >> thanks, john. let's check in with rick and get the santelli exchange. hey, rick. >> hi, carl. many of the markets now are at

areas where it's either going to be a resistance level and back away, back into a range interest rates or they're going to push on through. and if whether we look at boones or guilds or treasuries, there's a big similarity whether we look at the dax, the gac, the s&p. there's similarities. many ways these are tied together by foreign exchange and the dollar index reigns supreme. is it the best metric? no. look at this 15-year chart of the dollar index on your screen because i think embedded in that chart may be the key as to whether many of these markets pop through the ranges or get held in and confined back into a consolidation. let's go to the white board. remember the clue i gave you? to tony orlando and dawn. what does that have to do with this? knock three times. dollar index, 15-year chart. here we have number one at 100.

here we have number two at 100. and right now, intraday at least, we have close to a penny and a half from touching 100. this is always based on closing levels. and the point is technicians have always had the knock three rule. usually the third time you go through and you want to really be cautious here. because you could give it a little time to make sure it's going through. sometimes these things are called kisses. they'll kiss it, go a little through, fake you out and go lower. when you see how the dollar ind index, last time it did any serious work, or how it came down -- if this goes through, there will be some room. other thing i always like to do when i talk about technical analysis is look at the pacman notion. it's the same principle. scoop, scoop, scoop. look at any metaphor, any analogy you want. we see higher interest rates, what central banks do, how the

pound or impact inflation, maybe the easiest way to monitor all these issues is just to monitor 100 on the dollar index. john forte, back to you. >> thanks, rick. uber and lyft by giving drivers a bigger piece of the fare.

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>> the company already has more than 16,000 drivers signed on to the service, and talman marco is the founder and ceo of juno, and he joins us here. is it that easy, you can start a whole new company with a small twist to the business model? >> you would think so. nothing is easy, but it's not as difficult as one might think. >> i have taken a few junos. i found out about it in in an uber and in a lyft when the drivers had the phone up on their dashboard and it said 25% off your ride, ask your driver. i mean, that's a shot across the bow. >> i guess so. if you think about it, the best place to find potential user for a service is in the car, and juno is working much closer than

any other service with drivers. we treat drivers much better. therefore, drivers are motivated to help juno. it's sort of -- it's a cycle. we're nice to drivers. drivers are nice to riders. riders get something extra, and it keeps on going. >> what do uber and lyft have to say about that? have they reached out to you? >> i think this is something that you'll have to ask uber and lyft. >> it seems like a race to the bottom right now in terms of service quality, in terms of price among a lot of these how are you going to be able to be in enough places that people can rely on you? >> well, there's a certain inherent assumption in what you are saying that i have to spend a lot of money on marketing. i don't think that's necessarily

the case. as evidenced by how you joined our service. we did not spend money on marketing. more than 50% of our users are coming through word of mouth. just friends telling friends. >> so you think a driver revolt will be your marketing? >> i don't think i would use that term, but i think by working closely with drivers by being exceptionally good and fair to our drivers, we are turning this around. our cost of recruiting drivers, our cost of recruiting riders are significantly lower than the cost of the competition. uber is spending thousands of dollars on every driver. we are yet to spend a single dollar on driver referrals. we never pay our drivers to bring other drivers. they just tell their friends. >> is it an intentional business model to let uber raise awareness for the practice, in general, do all the fighting with municipalities, have a deal with all the lawsuits, and then have you come in it afterwards

like a minimnow next to a whale? >> i think if we have this discussion in 2009, i say i'm going to launch this service in 2016, it could have set the state of affairs as it is right now. these things are getting legalized. the drivers are there. awareness is there. now as a follower, there are opportunities for us to be far more efficient in terms of how we spend dollars to attract both drivers and riders. our economics are much better because of that. >> how many drivers drive for juno and uber and lyft, and how many drivers are just full-time employees of juno and only work for you? >> i don't know exactly how many of our drivers, if any choose to driver exclusively for juno. we're not encouraging them to do that. i can tell you that every one of our drivers in order to join juno have to show us that, a, he is driver for uber or lyft, and, b, what's most important that they have a high rating.

every one of our drivers is a high rated driver. you already are starting with a service that's inherently better. you are getting better drivers. you are getting drivers that have newer cars. you are getting drivers that are more excited to take you. when you enter that car as a juno passenger, they know they're going to get equity in the company. they are actually our partners. >> okay. >> our drivers refer to juno as we. we as juno. when was the last time you heard an uber driver say we at uber. it's they. it's always they. they at uber. we at juno. >> we have to leave it there for now, but i know it's a name, juno, that a lot of folks in new york city are becoming familiar with. come back soon. >> thank you very much. when we come back, vice president tim cook not as far-fetched as you might think. details on that in just a moment. [alarm clock beeping]

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there are many things you don't like coffee.strial strength- 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! a leaked e-mail from wikileaks shows names under consideration, including apple's tim cook, bill and melinda

gates. also, ursela burns, mike bloomberg. by the way, we will talk to vp candidate tim kaine on closing bell 4:00 eastern time. >> no way those would have been -- personality-wise, can't see it. >> wish list. >> you could call it. now to wapner and "the half." >> carl, thanks so much. welcome to "the halftime report." stocks higher this hour on the back of some pretty good earnings from several members of the s&p 500. we have two special guests with us today to help make sense of the investing landscape. jamie is the founder, chairman, and ceo of york capital management. mark lazerie, ceo of avenue capital. both with us today for the hour. along with joe terra nova, josh brown and pete najarian. great to have you together on the set. let's talk about the market environment. jamie, i'll go to you first. it