good morning. it is 8:00 a.m. at ebay headquarters in san jose, california, 11:00 a.m. on wall street, and "squawk alley" is live. ♪ ♪ there's a mountain in my way good thursday morning. welcome to "squawk alley." i'm carl quintanilla joined by kayla, sara, henry blodget,

business insider here. market down about 51 points. of course we are watching reaction to the debate last night. that showdown off the strip in las vegas as donald trump and hillary clinton took part in the third and final debate covering everything from the economy to cybersecurity. >> i personally believe that the steps that president obama took saved the economy. he doesn't get the credit he deserves. so what i am proposing is that we invest from the middle out and the ground up, not the top down. >> she's been doing this for 30 years. why the hell didn't you do it over the last 15, 20 years? the one thing you have over me is experience, but it's bad experience. no idea whether it's russia, china, or anybody else. >> i am not kwquoting myself. >> you have no idea. >> i am quoting 17 -- do you doubt 17 military -- >> our country has no idea. >> are you saying you're not prepared now to stick to that

prince snl. >> i will tell you at the time. i'll keep you in suspense. >> let me respond to that because that's horrifying. that's because he'd rather have a puppet as president. >> no puppet. no puppet. you're the puppet. we have some bad hombres here and we're going to get them out. >> my social security payroll contribution will go up as will donald's assuming he can't figure out how to get out of it. but what we want to do is to replenish the social security trust fund -- >> such a nasty woman. >> just a taste there of last night's big fight. joining us from las vegas, brexit campaign leader and member of the european parliament nigel faraj. good morning. nice to have you here. >> good morning. thank you. >> you are in vegas. you saw the debate. what did you think of donald trump's performance? >> he was much more controlled than he had been in the previous detate bathes. he tried to show that he can keep his temper, however frustrated he gets with hillary. i thought on the economy he did well against her. i thought on foreign policy he did well against her. i think marginally he got the

better of the night, but i think probably it's one of those debate where is both sides will say we won. >> and we're seeing that. they were quick to do that on twitter and we're hearing that from both camps, nigel. what about the fact that donald trump is casting doubt on the fair and free election process in this country? you're savvy politician. do you think that's a mistake? >> well, i can tell you something, as an anti-establishment campaigner in britain for over two decades, i have seen the establishment in my country cheat. no other way of putting it. we have a postal voting system, a prevoting system that is open to abuse. so i understand trump's frustration taking on the establishment, but i would suggest this to donald trump -- what he need to say, he need to move on and say whether i win or lose this election, i am going to drain the swamp, i'm going to fight for electoral reform in america to make sure that everybody that's on that register should be there.

then he can turn that comment into something more positive. >> there are lots of themes that take us back to brexit and some of your main campaign messages, anti-establishment. you were also pretty tough on the media, immigration themes. what do you see as the biggest similarity between the election in this country and what you saw back on june 23rd? >> the biggest comparison is that hillary even campaigns on similar slogans to the state of the union campaign. you have to establishment saying everything's going just fine, trust us, and actually out there in middle england and now here in middle america, there's a lot of people saying, do you know what, the last few years i've seen the rich get richer, our lives have not improved, it's time far change. the one thing that none of cus judge, brexit happened because a couple of million people who'd never voted in their lives turned out because they thought this election really mattered. is trump reaching -- is he digging deep into those kind of people in some of the rust belt areas of america? are they going to turn out in

huge numbers and provide a shock? and, you know, the opinion polls can say what they say. on brexit day in britain, the remain side were ten points in the lead and our side still won. >> i'm not sure about that. there were plenty of polls in june that showed the lead camp took the lead. we're not seeing that right now from donald trump at all. i mean, certainly the betting odds got it wrong, but the polls did show a closer race. so i'm not sure it's an exact parallel. >> well, they did until the last 48 hours. in the last 48 hours the pollsters got an indication there had been a massive change towards remain. the one thing for certain is that polling companies both in britain and america now find it very difficult to measure nonvoters who are coming into the process. so the key to this is from trump's perspective, how many are there. my feeling, my perception, is he is behind but i don't think he's as far behind as the polls indicate. and, hey, there's still 20 days to go. there's stale lot of this campaign to come. >> a lot of people would look at

what you're saying and say it's hypocritic hypocritical. you blasted president obama for coming to the uk and telling the british people how to vote on brexit. now you're here telling the american people how to -- i know you're not saying you're advocating how to vote, but you are speaking at a campaign rally in mississippi in august. >> well, i did, but i didn't know, i did make it very clear, i haven't come to tell anyone how to vote. that would be wrong. but i am here to draw parallels with what happened in brexit to think about the crossover in terms of the issues and the start of the campaign. i was i'm here as more of a commentator than anything else, although i have to say when i heard hillary in her speech to wall street bankers talking about the idea that she wanted the european union common market to be a global phenomenon, i think it's pretty clear who i wouldn't vote for. >> nigel, your points about polling and the rough science that it is are well understood. i think everybody gets that. but here it's not just about policy and sovereignty.

we've got character issues. we haveish shouse about how gender -- different genders feel about various candidates. you don't see an analog to that in brexit, do you? >> no, i don't. no, this -- i mean, we didn't have real hi much distinction in terms of brexit. you know, male and female voters were pretty much evenly weighed on both sides. there was an attempt in the brexit debate to kind of say that those of us that wanted to leave the european union somehow had a racial agenda, but i think we slapped that down too. so, you know, i mean, in many ways, brex it wasn't particularly personal. it was very much about the issues. this campaign by its very nature is of course personal and i must admit at times not very seemly. >> nigel, one of the concerns that advisers to trump have been sharing is the fact that even when they give him advice, they don't feel that he accepts it or is listening and is prone to do his own thing regardless of

better judgment from their behalf. how do you feel when you give him advice? do you feel that it lands and that he listens to you? >> well, i think i listen to advice. i'm sure that many that have advised me over the years would say i perhaps haven't always in the way they would like. look, donald trump is a 70-year-old successful businessman who's made his own way in the world and done things his own way. we have a saying in the uk, you can't teach an old dog new tricks. and trump is trump. and no one's going to change him. >> how can you come here talking about brexit as if it's a success when we actually have not even seen it implemented yet and we don't have a very clear picture of how it's going to look? >> we got our country back. we literally lost the ability of our parliament to make our laws, of our supreme court to be the ultimate arbiter. you know, we sold out. our politicians have old out for those key decisions to be taken somewhere else. we won that referendum. we will get our country back. yes, of course you're right, the

exact shape of the trade deal, how we deal with the demand for open borders, all of those things are to be sorted out, but what we have done is to win a huge, historic battle. and, you know, people in britain thought why on earth are we being governed by brussels? people completely remote from us. it's interesting although within the same country a lot of people in america feel rather the same way about washington. >> a lot of people look at that double-digit slide in the british pound and say it foreshadows darker days for the british economy, potentially even recession, especially if prime minister may prioritizes immigration over the free and common open market. what do you say to that? >> well, i'll tell you what i say to that, 15 years ago i was told that if britain didn't join the eurozone we would have an economic disaster, investment would dry up, manufacturing would disappear, the city would migrate to frankfurt and paris. thank goodness we didn't join the euro. it's the eurozone that is facing genuine recession.

the truth about sterling is this -- sterling entered a bear market, a declining market in july 2014. sterling has been too high for years because of the massive asset bubble that is the london properly market. and the fact that sterling has come down actually for a country that wants to trade its way out to a brighter new global future, quite frankly, i couldn't be happier. >> that searchly is one silver lining. we'll leave it there. thank you, nigel farage. safe travels home. that is nigel farage, the leader of the uk independence party, thought to be the lead campaigner on brexit, drawing some pretty close parallels to the u.s. election. >> that interview was worth waiting for. thanks to farage. sara fay ginn and crisco fee nis, good to have you with us this morning. >> thank you. >> is the media making too much of this comment about not committing to the outcome of an election? >> no, it's not making too much of it. i think that was a huge strategic error by donald trump last night.

he had an opportunity to put to rest this notion that this election was rigged and it was somehow going to be stolen away from his supporters. i thought that was a mistake, and he took the bait and took it late and now we're talking about it again all day. >> chris, does it hurt him with mainstream republicans? do some of his nasty comments with women hurt him with women? >> he was doing fairly well for the beginning part of the debate. between nasty woman, the unwillingness to accept the election, people kind of turned on him. it speaks to the problem he's had with his entire campaign. he keeps blaming everyone else for his faults.

the reality is he needs to look in the mirror. the reason he's not moving undecided voters toward him, why he's losing moderate republicans, people who would be open to voting for him because they want change in this country, is they don't see he is a reasonable candidate and that is a devastating thing when you're being accused of that by your opponent, but when you confirm it with your own words and deeds it's even worse. i can't imagine trump had a worse debate, even though he didn't have a bad debate, but considering where we are in this election, it really was a blown opportunity. >> it was his best debate of the three, i thought, and particularly for the first half hour he was doing pretty well and hanging in there on the substance discussions as well. but what donald trump needed last night was a game changer, and he didn't get it. >> right. >> and so as a result of that, you know, he goes into, you know, really what the former guest from the uk just said,

hoping that there's some pocket of 2 million-plus voters that just show up that no pollster is measuring. well, that's never happened in american history, and the polling actually got the election right in the primary. they showed that donald trump was ahead for six months even though many of us didn't believe it was possible. the polling was right in the primary. and it's right at the moment as well. >> i think our jon fortt has a question. jon? >> yes. sara, the republican establishment has been much maligned in this part of the cycle in the general. what happens after the election if trump doesn't win? of course we don't know what will happen. how does that establishment try to reassert itself, promote the legitimacy of the democratic process and move on from here? sit clear who exactly is going to be the one to do that in leadership? >> well, it's a great question, and there's enormous soul searching going on in the party

right now, and it has been actually for some period of time, but it's going to intensify here after this election. i think a lot of it, john, depends on the outcome of the race. you know, if the republicans lose the senate and the house, i think in some ways it actually puts speaker ryan in a better position to forge forward on a new path as a new type of leader for the republican party. but he's in a very difficult position as the most senior elected official right now because he's under attack for not so aggressively supporting trump. and so i do think -- >> if they lose the house, though, isn't that a referendum on his leadership? >> no, i don't think so. i think if we lose the house of representatives it's going to be a referendum on the type of campaign donald trump ran. these things often times break one way at the end, they break heavily, and if donald trump

cannot even beat barry goldwater in terps of percentage in a national election, it will have reverberations for the entire party. i'm not saying we're going to lose the house. there's a decent chance and a good chance paul ryan will remain the speaker, albeit by a much narrower majority, but if we lose the house it won't be because of anything paul ryan did. >> chris, what are your expectations on the congressional front and what kind of point spread on the up ticket really is the make or break for maintaining control of the senate or the house? >> yeah, nothing like asking me to make a prediction a couple weeks out in those unpredictable, most unpredictable of elections. that being said, i think what you're facing right now, i'm not sure we're at a wave yet but you're starting to see the begin of it, especially the presidential level. anyone who's done presidential politics, the idea that arizona and georgia are trending, you know, hillary clinton's way or

even competitive, that you're seeing texas in small digit numbers, it speaks to you having fractured republican party and moderate republicans and undecided voters who may sometimes vote republican moving away from them. now the question becomes are they going to not vote, are they going to vote split ticket, or are they going to simply put their hands up and say i don't want to deal anything with the republican party period? it's not clear yet. what you are seeing i think sides in some of these senate races that the anti-trump movement is starting to, you know, backlash in the sense of it's starting to hurt republicans in states like i think pennsylvania and missouri and north carolina, and i think that's a problem. but i think we're about a week away in terms of seeing where the polls are. if you start seeing, you know, the spread between the congressional ballot at five, six, seven points, then the house is in real jeopardy. i'll disagree with one thing,

you know, sara said, here i think is the reality. whether trump is different than, you know, paul ryan, you know, you're going to have that -- i know republicans will try to distinguish that, but here's the reality. when you are the leader of the party as donald trump is, that bleeds down and you can't just walk away from him. and that is the trap that republicans are in right now. and the question is how much political damage is going to be done, not whether there is political damage. >> yeah. i think one of the stories of the morning is just the paucity of response. there just hasn't been a lot of interaction or comment either way from leaders of the gop. >> that's right. i mean, you see the clinton campaign has a very robust surrogate operation, and everyone has been out talking about the job that hillary clinton did last night. and there isn't a chorus behind donald trump. that has been a problem throughout this entire campaign, and it's because he makes it difficult for republicans to defend him when he goes on national television and suggs

that there may be some type of systemic fraud in our electoral system which there's no evidence to suggest there is. >> sara, chris, thank you guys. appreciate it. >> thank you. >> we'll see what the coming days bring. sara fagen and chris kofnis. when we come back, why mark zuckerberg is defending peter teal's support of trump. and trouble in the valley. why 2016 may be starting to look a little too much like 2001. and later, i max with results this morning, the ceo joining us at post 9 to talk about that quarter. >> there was eve an time when he didn't get an emmy for his tv program three years in a row and he started tweeting that the emmys were rigged. >> should have gotten it. isn't major medical enough? no! who's gonna' help cover the holes in their plans? aflac! like rising co-pays and deductibles... aflac! or help pay the mortgage?

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welcome back to "squawk alley." politics, presidential election and silicon valley colliding, mark zuckerberg defending peter teal, his support of donald trump and his $1.25 million donation to the trump campaign in an internal memo to employs, zuckerberg saying, "we can't create a culture that says it

cares about diversity and then excludes almost half the country because they back a political candidate." then he adds sh "there are many reasons a person might support trump that do not involve racism, sexism, xenophobia or accepting sexual assault." now let's bring in business insider, ceo henry blodget back with us and "vanity fair" special correspondent nick builting here with me at the "vanity fair" summit. nick, good to have you. this is the buzz around here. i've talked to several people about this facebook issue in the past 24 hours and really silicon valley in general. i mean, it reaches out. what should silicon do about peter thiel? you think he ought to be on the outs. why? >> he should be pushed out of silicon valley, banned from this town. no, the realty is this is not just supporting a candidate who

believes in an abortion and pro gun rights and things like that. that's what this country is built on. we're allowed our views on that. this is a candidate who supports sexual assault, is racist, attacks the media, goldstar parents. it's a whole separate level. i think facebook over the last several months has been going through a lot of trouble with the news feed and the media and so on and trying to come across as a company that is straight down the middle and doesn't have a viewpoint. this to me seems like they do. >> that raises the question for me, what are the disqualifying beliefs that you get by association where you're not allowed to be on boards, maybe you should .a customer. henry blodget, where do you fall on this one? i might argue this is a good thing. everybody thinks everyone in

silicon valley is a liberal. maybe peter thiel is a good thought for diversity out there. >> i thought mark zuckerberg's position was exactly the right position for him to have on facebook. i think it is ludicrous to say we believe in diversity of opinion and so forth and then as mark said take somebody because you support a candidate, 40% of the country even with the current polls lined up to vote for, that's not diversity. freedom of speech doesn't just mean you support publications that say what you believe. it means you support publicat n publications that support things you find horrifying and appalling. i think that was the right position to take. it was tough. obviously a lot of what peter thiel says is very offensive and appalling to a lot of people that have the views that bill bill la nick bilton laid out, but a huge percentage of the united states disagrees. >> speaking of speech, peter thiel will be giving a speech in washington later this month,

expected to lay out in more detail why he's supporting trump. is there anything more you think the valley needs to know to understand where peter thiel is coming from or do you think it just understands that he's an outlier? >> i think that the valley is a little bit shocked about peter thiel's actions over the last year with, you know, going out to gawker and shutting it down. some people understand it, some people don't. all the trump rhetoric and so on. what's interesting is a lot of times you go through the valley and no one wants to say anything bad about anyone. now everyone is questioning peter thiel. i was on a panel yesterday at the "vanity fair" summit and asked some people what they would do if this was their board and they said they would have him off the board. i think we're starting to see a lot of people that are really questioning someone who has a very, very loud voice in valley on what exactly he's doing. i'm looking forward to the speech because maybe he'll be able to explain it. >> certainly will be interesting to watch. nick, moving on, you have a

column warning that silicon valley now looks maybe a little too much like silicon valley at the time of the dotcom bubble. why do you feel that way, particularly when you look at the valuation of a twitter? >> yeah. >> when you look at all these concerns about valuations coming down? doesn't that in a way argue against a bubble? >> well, it's really interesting. we've talked about bubbles many times on the show. we've all been discussing it. and i think what we're seeing, we didn't see a bubble pop, we're not seeing a bubble pop, we're seeing more of this air coming out pap lot of these on-demand services that got millions, tens of millions of dollars in funding, are starting to disappear now and go out of business, dozens related to the food space. and then you're seeing these hypervaluations that are not holding up in the public markets. and i think that this is a sign of investors and of the public saying these things don't add up. it's not what we thought a year

ago. we're starting to see the care come out of a lot of these different things. >> henry, does that sound healthy to you? the air slowly coming out, couldn't that be a good thing? >> tech has always been cyclical. i think this is one thing people miss when you talk about a bubble. the pc boom, the same thing happened. we had a lot of euphoria around it, big valuations. ultimately, pcs faded, the internet came in, we had what was a bona fide bubble in technology in the greater markets in 2000, then that crashed. now we're in another cycle. i agree with nick, i think we're in the back half of the cycle, in decline in part because a lot of the opportunities that were seized on in this cycle, consumer-facing internet, the b-to-b side have been exhausted and experiment and we're waiting for the next thing. venture capital in particular is always cyclical like the this. i think we'll go through the cycle, be in a down phase for a while, but ultimately a new thing will take us on the up for

the next boom. >> sounds like a plan. we've seen many of these cycles before. henry blodget from business insider, thanks for being with us, nick bilton of "vanity fair," thank you. >> thank you. >> thanks. meanwhile, docusign announcing a pay and sign service. i shoek with the ceo earlier today. >> so this is the new way to sign and pay. so if you think about it, the old way of the doing it, it was a two-step process. it was disjointed. and about 65% of businesses get delayed payments. they also a lot of times don't even collect. so what we've done is extensive product development and in conjunction with partners like apple, google, visa, strife, we've added docusign payments on the network, which has 250,000

companies that are on it and 100 million unique users. >> so speaking of your customers, when you were on last in november you said you had 50 million unit customers, 100,000 companies. can you give us an update on the numbers and whether or not you need additional funding to keep this going? >> basically those numbers have doubled. so we're now at 100 million unique users as opposed to 50 million. and now we're, you know, well in excess of that quarter of a million companies. and now we're putting 135,000 unique users on a day. six months ago it was 85,000 a day. a year ago it was 50,000 a day. business is accelerating. we're seeing a tipping point. >> of course i asked him whether they were here at the new york stock exchange as part of the rollout because of an impending ipo. carl, interestingly, he said very specifically, he says, no comment, but if we were to go

nine months from now it would be one of the biggest enterprise companies to go public. nine months seemed specific. >> not seven or eight, nine. >> nine. we'll see if that means anything. of course we'll follow closely. imax reporting earnings. check out the shares, currently up about 5%. joining us is the ceo of imax, rich, great to see you. >> nice to see you. >> imax had been screening the debate to viewers who wanted to come and pay for it. how many people took you up on it? >> i don't know because we don't own the theaters. they're licensed. frankly, that's news to me. i hadn't heard about that, but i'll find out. >> certainly a big-screen affair. your box aufls sales were flat year over year. these are cyclical-type numbers, but what do you expect going into the holiday? is this a trough?

>> no, aactually feel pretty good about the fourth quarter coming up. marvel has a film called "dr. strange" which comes out in a few weeks, and that advance rankings on that and testing is extremely good. these screens, some of the footage at imax, the movie is set up for the imax aspect ratio and the audience reaction was terrific. and "fantastic beast," the spin-off of the harry potter series, which was written by j.k. rowling. we did a fan vent for that and that's testing really well. and of course "rogue 1," the "star wars" spin-off series. i think the fourth quarter will be pretty good. >> how much of your business model these days is on adapting those high-figure, lucrative franchise names to imax? >> well, a lot of it. the reason why the quarter was so good even though box office was weak in general and in imax is we really grew our network. we have about 1,100 screens in

the world. our backlog is another 600. during the quarter, our best quarter ever for signings. we signed 163 new theater systems. so if you look at it for short run, the box office will drive you crazy. but if you have a long-term view, you build out your network and some years the box office will be good, some years it won't be so good, but this was a big quarter for us building our long-term momentum. >> china gdp this week has us thinking there's new stability to that economy. are they right? i've always thought there's stability there. you know, you and i have talked about this for about a decade now, and, you know, a lot of people are overly excited or overly negative. i think china's a real country and i think it's, you know, going to have its setbacks, but it's a steady place and i think the market has it a little wrong on china when they get hysterical. there will be speed bumps but i think it's fine. >> one last thing on vr. i've seen spielberg, all these different opinions about whether it is creatively feasible,

right? >> yes. >> for filmmakers to do a vr film. your opinion hasn't changed. >> mine is it's not, carl. i don't think you'll be able to do a whole film in vr because i don't think people are going to wear those head selts for two hours. but our approach to vr is to create a supplemental experience. so if you see tom cruise climb the bridge, afterwards you'll pay $10 to raise him to the top of the bridge. i think it's an interesting ancillary business but not a replacement for the movies. >> i'd pay $10 for that. out of time. good to see you. >> thanks. >> rich gelfond from imax. >> markets closing in the uk. see ma is back at hq. >> the ec b's governing council meeting, rates kept unchanged. mario draghi said policymakers did not discuss ending or even extending bond purchases but did hint that more stimulus may be in store for the eurozone pap

lot of the economists say the inflation debate will be key, that will determine whether draghi will extend qe beyond march of 2017 because of the stability in oil prices, of course. that's been encouraging for the inflation backdrop in europe. actually, here is what draghi said about monetary policy. >> the monetary policy support in place is extraordinary and we know we have said that the projections that are part of our outlook reflect financing conditions which reflect expectations that this support remains in place. but it doesn't mean that kit stay in place forever. >> meantime, the euro falling to a four-month low against the u.s. dollar and a dovish commentary from mario draghi helping the banks, the arizona banking sector currently witnessing its longest streak in

two weeks. bank of ireland higher by more than 7%. bonds stabilizing a bit after draghi defended negative interest rates. and speaking of bonds, keep a close eye on portugal, a ratings agency dbrs deciding tomorrow whether the debt-ridden country is worth an investment grade status pap downgrade would make the country's bonds no longer el jinl for the ec b's bond buying program which euro asia says would likely lead to another collapse and bailout. >> when we come back, cybersecurity a hot topic at last night's presidential debate, specifically russia's involvement in this year's election cycle. we'll talk to a self-described bounty hunter.

hi, everybody. i'm sue herera. a senior iraqi military commander says special forces have driven islamic state militants out of the town east of mosul. nassau county, one of new york city's most well-known suburbs is in the center of a federal probe. edward mangano along with two others including his wife were arrested today on federal corruption charges. they are accused of taking part in a conspiracy, which involves

bribery and fraud. a justice department survey out today showing violent crimes dropped from 2013 to 2015. the violent crime rate during that period falling from 23.2 victims per 1,000 people to 18.6. and great scott, snoopy is out of a job. metlife is cutting its ties with the peanuts character. >> pay has been part of its advertising campaign for 31 years. the move comes as metlife focuses its corporate and client -- corporate and clients and trims its u.s. life insurance business. what is the world coming to? that's the news update this hour. back downtown. snoopy is out of a job! >> interesting marketing decision, sue. that's for sure. >> my goodness. thanks, sue. sue herera. >> you're welcome. over the last week wikileaks has rolled out more than 12,000 internal clinton camp e-mails illegally obtained by hackers. the question is what, if anything, are we learning? eamon javers has that part of

the story. >> this is an issue that came under intense scrutiny last year and newly released clinton insider e-mails show just how cozy the clinton camp was with some executives at two of the world's biggest companies. with less than 20 days left until the presidential election, newly leaked emails putting the clinton campaign on the defensive, focusing on clinton's stance on the issue of encryption. she spoke about it just days after the san bernardino attacks during a primary debate on abc. >> maybe the back door is the wrong door, and i understand what apple and others are saying about that. but i also understand when a law enforcement official charged with the responsibility of preventing attacks to go back to our early question, how do we prevent attacks? >> clinton campaign staffer sara salo told other aides she had circulated clinton's comments about encryption to a contact at apple. her, mail reads "from my contact nick at apple, looks good, just

heard google is good too." the apple insider believed to be nick amman, director of global operations, writes, "hi, sara, yes, this was great pip got the clip to tim last night. definitely struck the right tone." the e-mails seem to suggest the clinton catch camp was seek eight prooufl and validation from the company about her message on encryption. apple had no comment. thooeter the clinton campaign nor google responded to requests for comment. apple's dispute with the fbi became a public battle in early 2016 when a judge ordered apple to help the fbi unlock the san bernardino shooter's phone. the leaked e-mail which is clinton's campaign have never confirmed are actually legitimate also show congresswoman zoe lofgren sought to keep clinton from siding with the fbi on the issue. "i hope our candidate does not leak on the side of the fbi on the encryption ruling. if she's leaning that way, can i

talk to her?" podesta responded that clinton was inclined to stay out of it all together. back to you. >> keeping on the theme of cybersecurity, it definitely was hot topic in last night's debate. take a listen. >> we have 17, 17 intelligence agencies, civilian and military, who have all concluded that these espionage attacks, these cyberattacks come from the highest levels of the kremlin and they are designed to influence our election. i find that deeply disturbing. >> secretary clinton -- >> she has no idea whether it's russia, china, or anybody else. >> i am not quoting myself. i am quoting 17 -- >> you have no idea. >> joining thus morning talking about this more is martin mickos, hacker 1 ceo. good to have you. good morning. >> good morning there. thanks for having me. >> you've developed an interesting concept and way to fight this, going on offense instead of defense.

can you explain? >> yes. exactly. this is something society desperately needs. we gather the best hackers in the world and we invite them to hack you and report the vulnerabilities back to the companies or the federal agencies who need to know where their vulnerabilities are. >> how do you find these so-called white hat hackers to actually identify the vulnerabilities? and what sort of compensation do they get? >> we have over 70,000 hackers in our network. they are white hat hackers, meaning ethical hacker who is look for the problem but they do nothing bad wit. they report it back to you. and they come from all over the world. we have recruited them for over three years. we rate them when they work so we know how good they are, and then they help companies like general motors, uber, twitter, and the pentagon, which has been running a program with us. >> your client base is impressive. yahoo!, you mentioned twitter, crm, and your point is that the hackers don't break your system.

hackers only make it obvious to you that it was broke en in the first place. how long is this process once you find these hackers to work for you? what do they uncover and how long does that take? >> when you start a program with us, it takes less than 24 hours to find the first severe vulnerability. for the pentagon it took only 13 minutes so they're very quick and that's what you need, because you need to fix your problems very quickly before the criminals get to them. and the power of this is in the numbers. there are far more ethical hacker, white hat hackers in the world, than criminals. so when you just invite the good guys to help you, you will always be safe. it's like a neighborhood watch. you're asking the good guys around you to help you see what's wrong with your system and help you fix it. >> a big issue that voters are trying to wrap their heads around this election, martin, is where classified information is stored, how it is treated, and where it is safe. you have a lot of government clients, and i'm wondering if you can tell us what grade you'd

give the government for the security of its own systems from what you've seen. >> well, the sad truth is that every single computer system in the world is subject to vulnerabilities and is at the risk of being hacked by criminals. there's nobody who is clean. and the government actually is in the forefront now running background programs and improving their system. give than they come from a world with all systems, it's blaif they've done in just the past two years. >> martin, some of our viewers might be familiar with darpa's cyber grand challenge, basically a challenge they put out there for hackers to create code that could search for vulnerabilities, find and patch it on its own, artificial intelligence. how long before you feel artificial intelligence is going to have a real impact in the world of hacking, whether on the defensive side or perhaps even

seeing ai-type attacks coming from abroad? >> those are long-term projects, so it will take a long time before they are at fall scale, butitis very important that we pursue those innovations and see how fast we can move forward because ultimately they there will be so many computers, so many computer systems that we need to have other computer systems policing them and finding tfind ing the vulnerabilities. >> finally, martin, whenever we talk tech we always mention that government or public sector is notoriously late to adopting new practices and new technologies. is that the case here? >> no. this is the opposite. if you look at hack the pentagon, the program we run in the spring, 1,400 vetted hackers hacking the pentagon for a few weeks, that was a pioneering work that the pentagon did and there are many fortune 1,000 companies who are still not there, who need to look at the pentagon and learn from them. >> martin mickos of hacker 1, a look at some of the companies

that are using this new model in terms of hacking to try to get back at those who would do harm. martin, thanks so much. >> thank you very much. my pleasure. >> when we come back, shares of ebay getting hurt today. the details on that in a moment. we'll go back to the "vanity fair" new establishment summit and talk to ford foundation president darren walker and talk about how they're using technology to build their foundation.

the countries' most successful investors join "the halftime report" today. one will tell you about the stock he just added to his ed . hedge fund manager barry rosen stein is with us as well. he's made several big moves recently including trades involving walgreens and auto nation and both will weigh in on the battle between active and passive money management. it all starts at the top of the hour. carl, we'll see you in about ten. >> sounds good, scott. thanks. shares of ebay and amex moving in opposite directions this morning. ebay, the number one loser in the s&p by a fairly wide margin, the company beat estimates, the top and bottom lines for the recent quarter but disappointing. the amex results above estimates, raisinging its outlook for the year. card spending, of course, is usually the metric we look to. but in this case it appears costco, that liability was

absorbed and a lot more emphasis on premium cards. >> analysts, i think, set low expectations because it was the first full quarter without any of the benefit from the costco portfolio. amex beat across the board but in addition to guidance they did say marketing spend will be up very big in the fourth quarter around the holiday, around small business saturday. so we know people are trying to put a fine point on exactly what that could look like. >> lowest quarterly revenue in five years and yet they're le leading the s&p. john, over to you. >> thanks, carl. as spider-man says, with great power comes a lot of responsibility. a lot here. some of the silicon valley, west coast thought about philanthropy is here. priscilla chan, whose famous spouse mark duzuckerberg, is a partner. and the ford foundation, traveled out here from the east

coast and will participate in some discussions about this. darren, how is technology changing the way people look at philanthropy and changing the way the pillars of fill and pi li philanthropy like the ford goes out. >> the number of people who are sitting in their living rooms who want to give to causes in africa or in india or in mississippi, in the united states are able now through these new platforms to efficiently and effectively reach millions of people. and so tens of millions, hundreds of millions of dollars have been put to use because these new technology platforms are here with us. secondly, for foundations like the ford foundation, it has created a different way for us to understand our mission, our mission to improve the public good. and so what that means for us is that we have to understand how technology and the digital r revolution can be used for social change. >>. >> reporter: darren, do you have

enough technologists who are writing code, solving problems to help philanthropy reach more people? and, if not, are there things that you're doing trying to bring that kind of talent into the space where you're working? >> well, the answer is no. if we he are to realize the potential of the digital revolution, we must have digital inclusion. digital inclusion will be paramount. but in order for that to happen we've got to have engineers, designers, code writers working in the public interest, working for government, working for civil so sighity. >> reporter: one of the themes that you've struck on quite often is equality. and one of the things i hear a lot of people wondering about is does technology necessarily expand inequality? people who have privilege have access to technology, perhaps in the future artificial intelligence, does it augment the advantage that they already have? what's your take on where we are now as far as whether technology

is expanding inequality or expa expanding it and what you can do to influence the direction that goes. >> well, technology has the opportunity to change the world for the better. but it won't unless we recognize the potential risk and downfalls that could come with making the wrong kinds of investments, so the right kinds of investments would include ensuring that there is universal access, that we don't have a fast lane for rich people and a slow lane on the internet for poor people. >> what's an example of how you could influence that in a different way? >> just looking at what's happened around net neutrality. it's a good outcome for the potential of the internet to reach all people everywhere in the united states and around the world. that's just one example. another example would be creating -- the creation of a new fellowship program that we have done to bring technologists

into civil society, into government, an organization code for america is doing remarkable work to build compass apacity w government. if it is only in the private sector and not in the public sector, who is working for the public's interests? >> reporter: how is philanthropy in silicon valley in particular different from the east coast right now? i know you know laura andriesen, the dean of philanthropy out here. you spoke in her class at stanford. how is the mind-set maybe different here than it is in new york? >> i think there is this frontiers man/woman that is inspiring. they don't have the legacy and the history and the baggage. they also don't have the which is dom that comes with decades of work. they're more agile. they're more nimble.

i think they're idealistic in ways that i find admirable but also there is some concern because the real root causes of some of the issues we have in our society can't be fixed by apps alone. we have to recognize that at the core of some of our great eest challenges in this country are issues of race and class and the kinds of inequalities that have been with us over many, many decades. >> reporter: all right. darren walker, president of the ford foundation, thanks for being with us. carl, i'll throw it back to you. >> thanks a lot. checking the markets as we go to break. the dow down some 28 points. the s&p still hovering right around 2137 and oil below 51. this man creates software, used by this bank,

to protect this customer, who lives here and flies to hong kong, to visit this company that makes smart phones, used by this vice president, this little kid, oops, and this obstetrician, who works across the street from this man, who creates software.

they all have insurance crafted personally for them. not just coverage, craftsmanship. not just insured. chubb insured. [aand i've never seen a rocketge ship take off like this. [owner] i'm lindsey. i'm the founder of ezpz. my accountant... ...he's almost like my dad in this weird way. yeah, i'm proud of you. you actually did some of the things i asked you to do the other day (laughs). [owner] ha, ha, ha. [accountant] i've been able to say, okay... ...here's the challenges you're going to have. and we can get it confirmed through our quickbooks.

and what steps are we going to use to beat these obstacles before they really become a problem. [announcer] get 30 days free at quickbooks.com looked like verizon would open weaker from the premarket on and, in fact, its the lowest levels of the day will take it back to numbers we haven't seen since january as people look at some of these post paid results despite the fios growth, despite the high-speed internet growth. >> post paid was expected to be 875,000. it was about half of that. so certainly a miss. >> yeah. meanwhile, amex you're watching as well, ebay, and microsoft tonight. >> and pay pal as well.

after what ebay, interesting to see whether some of the same tail winds helping the other payments players will help pay pal as well. >> we'll be looking for that. a lot of cross currents given earnings, some of the macro, central banks, and of course politi politics. our thanks to john ford. now to wapner and "the half." carl, thanks so much. welcome to "the halftime report." i'm scott wapner. another special guest for the hour, veteran value investor rich posina is the chairman and ceo of posina investment management. we'll spend the next hour talking about the stocks he likes and where he sees opportunity today. in addition in just a few minutes we'll be joined by hedge fund manager barry rosenstein of jana partners for a look at his portfolio along with a conversation on the future of active management. steve weiss, brothers najarian are here with us today. rich, th