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tv   Squawk Alley  CNBC  April 3, 2017 11:00am-12:01pm EDT

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remember the mega cap names within biotech will be a huge driver for what will happen in the sector overall. keep that in mind as we head toward the later part of this morning and this afternoon. let's send it over to the "squawk alley" screw for tleig "squawk alley" crew. >> it's 11:00 a.m. on wall street. "squawk alley" is live. ♪ >> good monday morning. jon fortt and me here at the
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markets. first trading day of the second quarter. a pretty interesting bid in bonds this morning to talk about. scott is wells fargo global strategist and nicholas, strategist, joins us to talk about that this morning. ten-year down. obviously you have the equities off their highs of the morning. what's going on there? >> ten-year is one of those k contra indicators. the 10-year yield should be higher if growth will be there for the back half of the year. these 10-year low yields are propping up stocks. >> scott, how long does that dynamic last? do you go along with nick's view of what's driving bonds? >> when you look at the fed
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prong projection and they tell us they'll do three hikes this year and three next year, are bond yields going to go up on that? i don't think so. i think the bond market is telling us that in a slow growth environment, you know, you raise rates six times in two years, you know, that's a headwind for economic growth. i think the consensus, our work suggests that consensus earning estimates for this year are too high. they've been coming down. we have a 127 number. they'll keep on coming down and gdp for next year, if we had to guess 2.3% for this year but if we had to guess for next year, it might only be 2.5. in that kind of environment, you won't see yields rocket higher. >> nicholas, how much does congress matter in q2. by the end of the second quarter we should have a good idea of how much this ambitious gop agenda is likely to get done in
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2017. at what point does that reality hit for better or for worse? >> q2 is a time where it should hit to the positive. we waited patiently through q1. we're waiting on the actual tax reform numbers and negotiations. so q2 is where the rubber hits the road. if you don't see any action by the end of q2, something solid like getting ready to go markets will begin to lose patience and back half of the year will be volatile because it will prove the trump trade was all hot air. >> scott, on that note, we had that consumer spending number on friday. we got auto sales today. some of this market pmi internals are a little bit mixed. was some of the ranker in washington during the first quarter having an effect on either consumer spending decisions or small business investment decisions? >> i think it might, carl. obviously confidence at the consumer level and business level have skyrocketed since the
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election. you know, that takes time to actually result in businesses doing capital spending, consumers bumping up their spending. so we think that's going to happen. we think that the labor market is going to continue to improve and for us, you know, we think the s&p 500 will end lower than where it is now and headwind will be based on work we're doing fears over wage inflation and i think that's going to creep higher in 2018 and maybe a fed that's confused and starts talking about maybe boosting rates a little bit quicker than what some people thought. you know, for us, our work since last fall suggested high around middle of the year for the s&p and it still continues to show us that. >> so given that, scott, what kind of mood should we expect? looking back at the q1 chart, good january, amazing february
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and flat to down march. how do you expect that emotionally to work through in this quarter? >> jon, i think that as far as earnings go, you know, you'll probably see when you hear these first quarter earnings, you know, they'll be pretty good. consensus is around 10%. somewhere in there. so those will be okay. what i think is going to happen is that the market is impatient. they want to see results. we certainly don't think anything the new administration is going to be doing is going to be felt in 2017. that's a 2018 and beyond story. i think you'll see the market maybe -- we might see the market run up here a little bit more. i don't think it will trade a whole lot higher. we'll have that pullback. close the year in 2230 to 2330 range. we want to trend toward cyclical stocks. i think people want to take money off the table. they want to get more defensive.
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they want to get less cyclical. those are types of things we'll look to do should we trade up to those kind of levels. >> i'm reminded of goldman's call earlier in the year when they argued that march would have been the point of maximum policy optimism, which is sort of playing out at least for now, right? certainly we're realizing it wasn't as easy as we thought in january. >> yes. and as we talked about last time, congress is not a great investment catalyst. so having to wait for congress to develop your investment catalyst is a long and torturous wait. i would add that i think volatility has to move higher from here. we had a free lunch in q1. better market, low volatility, that never lasts forever. >> we'll see what q2 brings in the next three months. dow down 85. guys, thanks. a busy week for president trump following this weekend's wide ranging interview with financial times covering everything from trade in china to health care and taxes.
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kayla tausche is in d.c. with the latest. >> it was a wide ranging interview indeed where the president said he accepts that every now and then on twitter there will be what he called a clinker. he also declined to discuss the timing of forthcoming tax reform but comments about china and escalating situation in north korea that are in focus as president trump plans to meet china's president on thursday. he blamed china for north korea's nuclear capability but says china will help us with north korea or they won't and if they do that, it will be good for china and if they don't. it won't be good for anyone. trade is the incentive. it is all about trade, he says. china's number two leader said a trade war would have no winners and in march said upholding the u. u.s./china relationship is key. they want the meeting to be a win-win while upholding tough
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exteriors. >> these guys are going to look like they don't like each other. they'll say tough things. one friendly thing xi wants out of this is he wants the words out of donald's mouth that this is a win-win story they put together which in secret code means we are peers and we'll do this with mutual respect. >> that will be key. we'll see what the tenor of that meeting is later this eke. it kicks off a geopolitically focused week at the white house. a meeting with egypt today and on wednesday with the king of jordan. that conversation likely will be focused on how to fight terrorism. where the economy is concerned, i think it's clear china is the elephant in the room for the u.s. economy, for the china economy and for the operations of companies that do business in both places. carl? >> busy week ahead. thank you very much for that. kayla tausche in washington. when we come back, more details on the potential apple tv
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product. we'll check in. and addicted to apple? one stock getting crushed after apple says it's cutting ties with it and mind games at uber. a new in-depth report on how the company uses "psychological tricks" to push its driver's buttons when "squawk alley" continues. cdw brought i.t. orchestration to growing businesses across the city, increasing productivity like never before, which is amazing, unless you're a barista. cdw implemented dell poweredge servers with intel xeon processors to allow people to work from anywhere, so lucky me. so nobody wants coffee?! hey, can i get a couple copies? enhanced mobility by dell. i.t. orchestration by cdw.
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apple dominating the dow in the first quarter. the best quarterly performance in five years as the company is working on a premium tv bundle to bundle hbo, show time and starz in one package and shares of imagination tech taking a nosedive as apple says they'll stop using the company's technology in two years. imagination does not trade in the u.s. but was valued at one time around a billion dollars before the news broke. let's get that and more. good morning to you. >> how are you doing. >> let's tackle this bundle news first. is this really the beginning of the next chapter in apple trying to package content? >> absolutely. they've obviously moved more slowly than others in this area. peter wrote the story. you know, they have to find ways to entice users to use apple tv.
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they sell each of these products individually under subscription. they're around $10 each. the idea of bundling them together because that's how people consume them is probably great one and cherry picking off all of the channels that people love. usually with cable you have to buy the other tv part, buy a whole burcnch of tv stuff. this is picking what people want and bringing it together presumably at a lower price. peter didn't have those numbers of the price. >> kara, isn't this a step backward in a way? after this time apple says you should be able to buy these channels one at a time and only the ones that you want. if the economics are going to move toward a cheaper bundle of three channels here, four there, what's to say that starz is going to keep offering an individual app if the economic shift in a different direction and we're back in the same cable box all over again.
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>> i don't think they're putting the whole cable box together. this is just premium channels that people like to use. i think the whole concept around these is people could pick what they want. if they want one channel, they can have one channel. if they want them all at a lower price, it's not an uncommon pricing technique. it's also a matter of convenience. i was trying to find one show the other day. i remember thinking this is a lot of stuff i have to go through all at once. it would be nice if it was in one place and i could buy it at once or if i don't feel like it and don't want to watch what's on starz or the various channels, i don't have to. >> how would you characterize the threat to traditional content delivery services like our own? >> that's the issue. the question is the way we've been served up is the way providers like comcast and time warner cable want it. if you want one thing, you have to take the other. increasingly that's not going to be the case.
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eventually the way you can buy stuff on netflix or amazon, this stuff is going to pull apart in a way that it's been doing because consumers are getting savvy and apps are easy to use and selection has been easier. even in the way that you do select them, the guides are getting easier to use. so i think that people have to think hard about the way the paradigm is and everyone is talking about the idea of cutting the cord and cable companies resist that idea but a lot of users are buying in this fashion and should be able to buy the way they want to buy and then figure out the pricing that works for it. >> carl, i'm cynical about some of this stuff. >> please. blow me over with a feather. >> you can't buy "game of thrones" by itself without getting hbo. everyone is bundling to an extent. players want the power to make the decision on what you buy. >> you argued about subscription fatigue. we have a limit as to how many other pipes we can all subscribe
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to. >> there won't be a million of these. i don't know if one is so much more beneficial to the consumer than the other. we'll have to see how it plays out. >> what do you make of the graphics chips news? is that an indicator of some other larger intent? >> i'm not sure. i mean they're working on a lot of other things around vr and y other things. they probably want control of their future. they just wanted to get ahead and signal where they're headed. i don't think it's unusual. too bad for that company that dropped 70% or something like that. eventually a lot of the key parts of their future they're going to have to control themselves and have a lot more ability to manipulate the technology. it's not a big surprise. >> potentially enormously significant though because if they're developing a gpu, graphics processing unit for mobile, are they doing the same for the mac? does this extend to apple tv?
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implications for amd and inindividuinvidia and car down the line because this gets into vision technology. we'll have to see how this develops for apple. >> video is the future. they have to have control and vr and all kinds of applications. heads-up technology. all kinds of stuff. >> some more headaches over at uber. city officials in pittsburgh where uber launched its driverless pilot program are pressing the company to give more back to the community saying in a partnership is is not just what we can do for them and "times" published a detailed report on how they use psychological tricks to push drivers' buttons as the company continues to face growing pressure over reports of gender bias, harassment from management and drivers themselves. how does this all move the
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needle with regard to at least uber's public face? >> well, pittsburgh, you know they've had issues in pittsburgh, arizona, san francisco around these self-driving cars. pittsburgh it's the mayor trying to shake them down for more stuff. so they want -- it's a good time to put public pressure on uber because they are saying, yes, i'm sorry quite a bit so they want more stuff. it's just a mayor being a mayor. that's what i would do if i was mayor. i think in the psychological tricks, i thought it was a fascinating story. i just did a long podcast with tristan harris who worked for google and other companies. every one of these companies does these tricks. facebook, google, get you to buy more. amazon. it's not surprising that since every driver on uber is pretty much interfacing with the company through an app that they're not going to use similar techniques to get them to work more, to get them to move to places that uber wants them to and feel like they're in a game
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and trying to earn money. of course they're going to do things that advantage uber. google has 1,000 engineers to make sure you click a red button and then try to say you have control of it. it's the gambling addiction idea. this loopic loop. it's so common to every company. >> facebook, google, our entire digital experience is based on psychological tricks whether you're a consumer or contractor. is the real story here perhaps the uber pylon whether pittsburgh's mayor or these different reports coming out about various things, various entities that uber is or is supposedly taking advantage of. if you are the investors in this company, what is your way out of it pylon of being cast as a bad guy? >> i think if travis saved a cat out of a tree, he would be charged with animal abuse. i don't think he can do -- honestly, i was talking to someone there and i said he
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should stay inside and never go out for the next couple months. you know, i think -- this story was interesting. again, i think that they do it and it's interesting on the implications on workers and it's no surprise because every company does it. you should listen to this podcast. it was fascinating to me about how they do it and how apple and all of them. extending it to workers, of course, is a thing. people have done it in the past by having contests at work and things like that. now they have the data of what actually works if you show us certain kind of thing. you're almost to $100. get there. how people sort of participate in that kind of -- are very easily moved. i do think drivers are pretty smart and they catch on to this stuff and their goal is to make as much money as possible. i think they're more savvy and do have more control. they're not sitting there like dummies. when i talk to uber drivers, they know exactly what tricks
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uber is doing. they really do. they seem to be very up on it. they're doing this and this and this. it's interesting. it's definitely a fantastic read and interesting read about how we're manipulated by apps and will be more so going forward. >> absolutely. kara, good to check in with you. see you next time. >> thanks a lot. >> today the federal government begins accepting visa applications for the first time under president trump. a program trump called flawed and in need of reform. o >> i talked to immigration attorneys preparing applications saying they are handling fewer application this year because the fees have been getting higher and that happened under the obama administration. and also because of uneasiness over the current political climate. there are 85,000 coveted h-1b visas given out. last year they received 236,000
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applicants. companies including google, microsoft and amazon are the ones who apply for these visas on behalf of perspective employees but critics of the system, including president trump, argue the current system lowers wages in the tech sector and favors outsourcing companies. flood the system with applicants and clinch the majority of these visas. the trump administration signaled it would reform the system, so far no changes have been issued. we talked to one current h-1b worker. she says entrepreneurs here on the visas do create a lot of value. >> now that i have my h-1b, i am able to work full-time. >> there are bills in congress that propose raising minimum salaries. a recent study found if higher minimum salaries were enacted, companies like google, microsoft
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and amazon would not see a meaningful change. back to you. >> all right. we wonder if investors would. still to come, signs of life overall. how a few high profile ipos in q1 are reinvigorating the market for companies going public. shares of amazon also trading at record highs. 880 bucks a share. "squawk alley" is back right after this. [vo] quickbooks introduces rodney. he has a new business teaching lessons. rodney wanted to know how his business was doing... ...so he got quickbooks. it organizes all his accounts, so he can see his bottom line. ahhh...that's a profit. know where you sta instantly. visit quickbooks-dot-com. at crowne plaza we know business travel isn't just business. there's this. 'a bit of this. why not? your hotel should make it easy to do all the things you do. which is what we do.
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stocks erasing earlier gains including those of the dax. pmi with a six-year high. banks among the biggest decliners led by spain's banco popular.
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the company needs to correct accounts of previous years with most adjustments related to doubtful loans and as we told you earlier, britain's imagine tech plummeting after apple said it would stop using graphics technology in two years. that news weighing on dialogue of germany. those shares are off their lows of the day. straight ahead, shares of tesla on the move after record breaking deliveries in q1. details coming up and strong words for google and facebook over hate speech in advertising or at least around the advertising. what other industry execs have to say. find out when "squawk alley" returns. >> they are media companies. not technology companies. they can't masquerade as technology companies and they're responsible just like you and everybody else for the content that goes out on the channel. they have to take responsibility. responsibility.
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good morning, everybody. officials say three people have been killed in a boiler explosion blast in a building in a st. louis industrial area. four others were injured. fire officials say at least three buildings have been damaged by debris. syrian activists say that government forces have intensified the bombardment against opposition held areas around damascus. there were 50 air strikes this morning and at least eight people have been killed.
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conagra issued a recall because chili kits could be contaminated with salmonella. and prince charles and his wife camilla visiting a traditional food market in florence, italy. they visited a local theater. that's the local news update this hour. back down to "squawk alley." jon, back to you. >> thank you. perhaps signs of life for the recently dormant ipo markets. mixed trade in the first quarter. so just what's the ipo pipeline look like for the rest of 2017? let's bring in richard peterson and sandy miller. good morning to both of you. sandy, start with you. you say you expect for ipo market in 2017 to be the best
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since the dotcom boom but if i look at canada goose and even snap, how it's traded, not encouraging on the action. >> i think i'm quite encouraged really. i think you don't want to see stocks double or triple on the ipo. snap and others are up in a nice pattern and i think set the stage well. you have to remember these stocks are volatile because the company is going public today are exciting companies with fast growth, big revenues in many cases but they are money losing companies so there's always a variability of opinion on companies like that we'll see volatility but the powerful trend is there. we'll see a robust market not just this year but into next. >> sandy mentioned there were no triple digit gains. solid gains.
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of the 23 priced in the first quarter, 18 are above the offer price. snap priced to 17. trading low. >> nobody that bought it on the first day is happy. >> they bought it in the aftermarket. the fact is i think tseeing inflection. health care actually seen a retreat. there are only four health care ipos in a quarter. lowest number since 2010. that's a percentage of the proceeds that we did about $9 billion in ipos and 300 million were from health care. only about 4% came from that sector. most of the money came out of $3.4 billion deal and invitation owns the $1.4 billion read ipo. >> you see m&a keeping pace with ipos? >> first quarter m&a was
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disappointing. people thought there would be a big robust followthrough from 2016. the fact is this was about 267 billion in m&a compared to 293 in first quarter. worst quarter since the first quarter of 2015 and fewer big deals. only two deals above $10 billion that was -- it was lowest number of $10 billion deals since the final quarter of 2014. >> sandy, is that just big companies waiting maybe for repatriation before they make a bid? >> i think -- i focus on tech sector. i think we're seeing quite a bit of m&a activity. most notable was poised to do a successful ipo acquired at the last minute. i think we're going to see more of that as companies -- we've
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seen the m&mara market in technology seem to cycle together. i'm optimistic about the m&a market and repatriation could have a very, very big impact but apart from that, big tech companies already have large cash hoards. last year all but two of the tech acquisitions above a billion dollars were acquired from nontech companies. big companies looking for relevancy in the new digital age and acquiring exciting young tech companies. >> we've seen a number of buying out tech for sure. what do you expect to influence sentiment the most throughout the rest of the year when it comes to m&a and ipos? this global macro situation? just fundamental earnings in overall markets? >> a quick reference back to tech m&a. $4 billion was the biggest deal for the quarter. the fact it was only $4 billion.
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you go back historically and $4 billion deal in techolo on a quarterly basis doesn't make top ten. you have to go to 2015 to find a quarter with a deal that size ranked at the top technique. in terms of sentiment, corporate earnings are going to do well. the fact is they have been coming down. back in november of last year, expectations for the first quarter 17 were about 14% and now under 10%. >> that's part of the -- >> as you get closer and closer, analysts ratchet it down. investors flipped from positive to negative. consumer discretionary where we expect 4% gain back in november and now we see 3% decline. >> all right. sandy, you agree with that? >> i think the -- i don't see
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risk in this particular scenario here. i think if we look at the fast growing sectors of technology, which we focus on, we're seeing a very different pattern than richard is describing. we're seeing -- we're going to see a pretty good flow of not only ipos but m&a this year and next. we have a situation where there's more private tech companies of scale and growth. let's say $100 million in revenue run rate or more. more of those today than we've ever had before and by a wide, wide margin because there's been investment in technology by venture capitalist. >> sounds like you have skip in your step as we start this spring. thank you, richard and sandy. >> google facing backlash from advertisers over that objectionable content on youtube. we'll hear from michael roth next and then egypt's president set to arrive for meetings at the white house to kick off a busy foreign policy week for the trump white house. dow down 93.
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to learn more. go long. why the bar is higher now for the valley in stocks to resume. plus, kevin o'leary has 20 t% o assets in cash and jim cramer will give us his shopping list that includes stocks that have taken a beating. we'll find out where he's finding some opportunity and also the 11 stocks that one firm
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says will be winners in the months ahead. halftime report top of the hour. jon, we'll see you in 20 minutes. >> looking forward to that. thanks. ad executives from around the world gathering in los angeles at google's content policies have come under fire with advertisers pulling buys. our julia boorstin is on site with a special guest. julia? >> i'm joined by michael roth, one of the largest ad agency conglomera conglomerates. google faces a buy coycott frome of your major clients. there are concerns over controversial or offensive content on their sites. >> the key to advertising and branding is brand reputation. and clients don't want to be associated with these type of issues so you can understand why when it first came out that their ads were being placed next
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to offensive articles and content, their immediate reaction was not to be there. >> so why aren't you advising all of your clients to pull their ads from youtube? >> rather than advising clients to pull ads or not, we're working with our clients and working with google in particular for them to solve the issue and frankly they're making good progress on that. and i think believe this issue of third-party verification is critical and we're making a lot of progress on that. you know, the best way to keep organizations accountable is to do it with your pocketbook. i think that part of it worked. >> what will it take for you and brands represented by other agencies to feel confident that this is never going to happen again? you say there's progress. has it been solved? >> i think the third-party verification and ability to audit are key components of that. so i would say a good part of it
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at least for now is on the way to being solved and some clients are back and the reason they're back is because we worked with them and google in particular to make sure that they're doing everything possible and we have a high degree of confidence that we will be able to solve it. >> some analysts say as much as $750 million of revenue this year could be lost from google. do you think that google is going to address these issues fast enough to not lose that much money? >> well, they are trying. the fact that some clients are coming back is a pretty good indication that they will solve it. again, the biggest use of google is in search so that part of their business was not affected by it. and, yeah, i think they paid attention to it. i think you'll hear them respond to it. and i think they'll solve it. >> this past fall we talked about mismeasurement issues at facebook. were you satisfied by changes
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they made to address them and what do you think of efforts made by the whole industry with these challenges? >> the efficacy of the work we do in making sure the work is seen by consumers in the right place at the right time is critical. facebook has gone a long way in terms of third-party verification. the problem with facebook or the issue they have to address is they are using their data for the verification. so what we have to do is be comfortable that their data is accurate. >> what are safety and accuracy of these digital platforms mean for television advertising as wiwe go into this year? >> up fronts has to do with positioning. so of course the television advertisers say, look, we're true and blue. you know what you get. tremendous reach. come on back. and look at the problems you have with digital. so, yeah, some people using it as a negotiating -- why wouldn't they. in the end, i think we're forecasting for the year.
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linear tv will be relatively flat. digital will continue to grow in double digits. >> how is advertising changing in the era of president trump? >> well, you know, cautious. brands have to stand for certain propositions and a lot of issues concerning social good whether it be clean water, bullying, women's rights, so on, continue to be important messaging to relay to brands. some people may view that inconsistent or not. i think everyone is going through a filter right now to make sure that we're not being offensive to any one particular camp versus the other. >> thank you for joining us. we appreciate it. we'll continue to discussion on stage. >> good stuff, julia. thank you very much. we're awaiting the arrival of the egyptian president at the white house. the first in a businey week of h profile meetings for the
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president. dow down 89 points. we're back in just a moment. the customer app will be live monday. can we at least analyze customer traffic? can we push the offer online? brian, i just had a quick question. brian? brian... legacy technology can handcuff any company. but "yes" is here. you're saying the new app will go live monday?! yeah. with help from hpe, we can finally work the way we want to. with the right mix of hybrid it, everything computes.
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take you to the white house this morning where we are awaiting the arrival of the egyptian president. first visit to the white house by a egyptian president since
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mubarak back in '09. let's get to eamon javers with more. >> reporter: this won't be the first conversation between these two leaders. they met in new york in september and spoke on the phone in january. so this is the latest in an ongoing series of contacts between this administration and the government of egypt. a couple of issues to watch for in terms of what will be discussed today. we presume that u.s. foreign aid to egypt will be discussed. the united states administration has suggested it's going to cut back dramatically on foreign aid spending. one of the questions will be whether the egyptian side pushes for more money for egypt in this meeting today. another one to watch for, of course, is human rights. the united states administration also saying here that they're going to pursue human rights but do it in a more private, discrete way. don't expect a big confrontation on human rights from the trump administration to the president of egypt here today, carl. >> i'm wondering, does this
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follow a thread we're hearing in recent days the trump administration seeming to take a softer tact toward syria and bashar al assad implying the fight against isis and terroris important to this administratre speaking. does this narrative on egypt follow that, too? >> well, absolutely. fishes here definitely believe egypt could be useful in the fight against isis. that's one of the president's number one foreign policy priorities. jared kushner, the president's son-in-law, is in iraq today. he's been invited there to get a lay of the landscape and as we know, he's become somebody who the president leans on on manner of issues, including middle east peace negotiations and domestic and foreign policy here at the white house, so when he gets back, we'll expect he'll have his input, but the anti isis fight, definitely a priority
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here. >> john harwood joins us as well to take about a big foreign policy week for the white house. john, got cici coming and sets up for the big meeting with xi this weekend in mar-a-lago. >> that's right. i think the point eamon made, soft, the projection of soft american power on issues that aren't directly security related. to the fight against isis and in the economic real m, wichina, a more transactional interaction you would expect president trump to de-emphasize human rights with china as well and focus on the international economic exchange between the two countries.
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i think this is reflective of how president trump thinks about what's important. the economy and security and back puts on the back page a bunch of other issues that previous administrations, including president obama, thought were significant. >> john, what are the downsides perhaps that come with putting human rights perhaps farther back in the priorities than you know, obviously important things like trade. like fight iing terrorism. i mean, are there allies in particular, constituencies in the middle east that would see this as a slap? >> well, look, president bush as well as president obama had different strains of american values and idleism in their foreign policy. president bush in the wake of 9/11, set out a goal of ending totalitarian rule or dicta dictatorships around the
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country. he said fostering democratic values was paramount. president obama was less committed to transformation given what happened in iraq and other difficulties in the region, but viewed human rights as core to american values and the projection of what america stands for around the world. it's just a different way of thinking about america's role in the world and what's important to americans. it's the manifestation of the america first policy donald trump has articulated. >> before we go to break, the big story about the chinese working through the president through kushner. you've got kushner in iraq, a country that till eson has not yet visited. do you make if you're rex tillerson right now? >> i'm thinking that i do not have the portfolio that s secretary of state tears of state have. if you've got jared kushner, who has in his portfolio prepping
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the president for a meeting with china, handling relations or surveying the antiisis campaign in iraq, with a whole other range of issues he's involved with dmesically, you forgot to think this is an administration that is imbalanced in the way weather traditionally come to think about them in the roll of cabinet secretaries and staff. >> got that to watch. watching the judiciary committee op this gorsuch vote. dow is down 106. we'll take a break. back in a minute. back in a minute.
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busy morning for auto sales. tesla delivering a record 25,000 vehicles in the first quarter, also hitting an all time high today pushing market cap higher fan ford's. phil lebeau has been digging through the numbers. >> let's talk b about tesla versus ford. this is a watershed moment. when you have tesla now having a higher market cap than ford. last year, tesla sold a little over 76,000 vehicles and yet, has a higher market cap than
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ford, which sold 6 p.6 million vehicles worldwide and made $9.4 billion, but the market is what the market is and now, tesla has a higher market cap than ford. >> a bit of a reach to surpass gm. right, phil? >> yeah, but they're nip iping their heels. it's not going to happen real soon, but they continue at this trajectory and if gm continues to languish as ford is, don't be surprised if we're talk iing abt that atom so many point in the future. >> is this an indictment of ford and gm or just hoping gone mad with tesla? what has to actually pan out for this relative value to make sense? >> well, you have to believe that the model three is going to be successful for tesla and not just that they dlefr it, but that will it will be successful. >> thank you for that. we're watching egyptian president arrive at the white house this morning. pretty much on time. eamon javers, wea've sot of
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raised the curtain, but it's not just a bilateral. it's a, woing lunch following by the meeting with the secretary of state today. >> that's right. a whole series of meetings. you see the president there at the west wing door. this has become a tradition for this president doing the official handshake and greeting at the west wing door there. that's something foreign leaders look forward to. they know this moment is going to be in the newspapers back home and in the united states. the president spending some cig tapt time here with the egyptian leader. also gesturing to the cameras, looks like they're pose iing fo photograph. some of the still photographers were set up out there to the left of the door you see there and then the president has gone inside the u.s. marine guard and the entire u.s. military guard here on full display. this is what the white house does so well. home court advantage for the president of the united states with all the pomp and s
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circumstance that goes along with this. >> certainly, we have a president well versed in the power of the moving image. we'll keep your eye on this as you see the honor guard there working his way around the white house. for now, dow is down 203. over to wapner and the half. he . welcome hoth halftime report. our top trade this hour, will the new quarter for stocks bring more gains for investors? with us for the hour today, pete na jeer yan, joe terranova, also jim cramer, kevin o'leary, the chairman of o shares etfs. stocks are lower today, but coming off their best quarter in more than a year. the way i've been thinking about this is that stocks are going to move from faith fo fundamentals. the market went up based on the faith of

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