tv Squawk Alley CNBC April 10, 2018 11:00am-12:00pm EDT
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rices, banks manage interest rate changes and airlines hedge fuel costs. all so they can manage their risks and move forward. it's simply a matter of following the signs. they all lead here. cme group - how the world advances. good morning, it is 11:00 a.m. on capitol hill where we're all on mark zuckerberg watch it's "squawk alley." ♪
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♪ but he keeps on forgetting what he wrote down the whole crowd goes so loud he opens his mouth but the words won't come out he's choking now everybody's choking now time's up ♪ ♪ snap back to reality oh, there goes gravity ♪ >> i'm carl quintanilla with john fort. dow is up 475. despite the rally, the dow is the worst performer of the major averages in 2018, down about 1%. hey, bob. >> the rally is holding. the question is how much does the market care about progress on trade issues? it cares an awful lot. 10:00 p.m. eastern time. chinese president xi jinping and we went up 30 points in 30 minutes, almost 300 points on
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the dow. and that's continued to sustain itself here. the president, president xi talked about opening up his country, specifically more to financial firms and insurance companies. we have some big financial firms that are up nicely this morning, jp morgan, black rock, invesco, for example. 2.5%, holding on to that lower auto tariffs not only u.s. automakers but european ougautomakers, dimelers up this morning. sectors, i love the action when semis and industrials lead and financials and i am particularly happy that energy is strong and i think it's more than just the fact that oil is up nicely today. they're startingto emerge as leaders. we've been waiting for ages. nobody has been buying into energy for a long time conoco has had a 52-week high in
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the s&p 500. there's not a lot of big breakouts yet. slowly, in the last few days, energy has started to outperform the s&p 500. it's been a terrible performer all throughout the year. you put up the xl levers, notably underperformed that's the white line. the orange line is the s&p 500 the last few days it's starting to get closer to in-line performance. that would be a huge -- xle just performed in line with the s&p that would be a huge improvement. nobody has wanted to own for a long time. for more on tech valuations, good to see you both it's still -- the flows have been pretty healthy. we know what it contributes
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overall to s&p earnings, eric. >> despite all the brouhaha and noise, usage appears to be up. very profitable companies and very strong sector. >> do you think today changes that narrative at all, depending on how lawmakers come out and appear to be interested or not in heavy regulation? >> i don't know that lawmakers are going to be -- make much of a difference besides the theater aspect of it the only thing you need to watch is whether usage on facebook because of these privacy issues in the united states -- globally say different matter -- will start to go down as andrew sulkin pointed out in the "new york times" this morning, people don't care about privacy. they keep going back to the crime scene as he says. >> look for google searches or delete facebook. it hasn't peaked in the last few
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weeks. >> no, it hasn't we won't find out for a month or so if usage has actually declined until they talk about it quarterly i just don't think it's going to have much of an effect we'll see. instagram is still growing in its core, might have been the best thing it's ever done. there's a lot that they're still doing well and people are coming back >> allie, europe will start to implement gdpr and based on what we're hearing hours before the zuckerberg testimony, it doesn't seem like both parties are united in even wanting to do regulation here in the u.s so, given that, is this really that big a deal beyond the optics companies that you're dealing with are already preparing to be in compliance in europe. the u.s. isn't necessarily even coming up to that level. >> that's right. as noted, there is going to be a fair amount of theater today
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i think you're seeing even the tech sector at least understand that they now need to engage it's not just facebook everybody is kind of coming to pay homage and starting to -- we see if anything with meat coming out of it. i don't think anything will happen quickly yes, gdpr, larger companies have to focus on. europe has always been ahead on these matters. data privacy and the right to be forgotten. and regardless of whether or not the eu national is located in the eu, these companies need to be able to follow that legislation, which is why it's relevant for everybody everyone is getting ready. >> sort of on that notion of whether it's gdpr or whether you are to see increased regulations here in the u.s., social media companies will be facing that increased regulatory burden in europe but it's also -- this is the last day it will affect
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everybody, the data brokers, app developers, on and on and on, right? >> to some degree why. think about what's happened to facebook from my point of view, they've lost control of its platform by giving away, really, a ton of data on you personally that you are probably not aware of how much data they have captured, giving it away to either advertisers or to other application developers or service providers, that genie, you can't put it back in the bottle that data is out there and there's likely to be more revelations. society, in general, should be concerned about the privacy issues we have seen the harm that it can do in the case of the russians and cambridge analytica and all that somehow, something has to be done so people are aware that privacy is being violated left and right. >> when he says there's been no meaningful impact, do you believe him? >> no. >> you don't >> no, i don't believe him
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i think the harm is for real i don't think we understand the extent of the harm and if he adopts, as he has said he would -- now he is on the charm offensive. even though he's saying that he might adopt the european standards, he hasn't really taken any steps. yesterday i tried to look at my privacy settings on facebook i defy anybody to find them. let alone to be able to influence them. >> like flying a plane. >> they were supposed to change it yesterday there was supposed to be a little pop-up that walks you through it it didn't actually get easier. >> we'll watch that. we are a few hours away from zuckerberg's appearance on the hill julia has been following this and joinsies from d.c. in the hearing room. >> this is the hot seat, where mark zuckerberg will be sitting when he testifies before the senate judiciary and commerce committee. there's a stand-in, as all the
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photographers set their camera and get ready for the hearing to start in about three hours because it's two committeesa a joint hearing, there will be 43 senators they set up these extra tables to accommodate the full house. it may not always look full during the hearing because senators will probably filter in and out throughout the course of the hearing. now each senator will get five minutes, which will add up to about a four-hour hearing with only two five-minute bathroom breaks over the course of the hearing. zuckerberg actually made the rounds here in the senate building yesterday, meeting with various senators here. today, he has no meetings. he has hunkered down, preparing for today's testimony. facebook source tells us he will very much focus his answers and his testimony on facebook's accountability and the changes it has in the works to prevent anything like the cambridge analytica from ever happening
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again. safeguarding the platform by limiting information developers can access, and building better controls for both users and for facebook there was another initiative announced just about an hour ago. a data abuse bug bounty program. it aims to reward people if they find any instances of misuse of data by app developers facebook doesn't say what the average or maximum reward will be, but says it will be similar to its bug bounty program which will reward people based on the impact of the data misuse they find bug bounty program they've had reports that have garnered rewards as much as $40,000 facebook says if it finds data abuse, it will shut down the offending apps and take legal action this is all part of a theme we're likely to hear a lot about from zuckerberg when he sits here today, this afternoon, which will be facebook's priority of its users over its
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profits. he will be pressed really hard by the senators who will be here on my right. it will be interesting to see how he fares in this hot seat. >> 2:15 eastern time the hearing gets under way we'll have full coverage here throughout the day on cnbc. >> we've been talking about user growth and whether that's actually going to be impacted here when we're discussing facebook yesterday in some of the prepared testimony we got from mark zuckerberg, he noted that they have 15,000 people. they'll raise that to 20,000 to me that sounds like a pretty high cost, high expense that will cut into margins. what are your thoughts >> i think this is still the beginning. maybe it will cut into margins people are more expensive than technology but i don't think that that extra 5,000 people will really solve this problem it's inherent to how the platform operates and what their
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if you're not paying for a service they're using your data, whether you realize you're contributing to that or not. >> even if they dodge a bullet in the sense of big regulation coming down there's enough scrutiny on this that it causes them to be gun shy as far as how aggressive they are in their business and cause ace multiple compression where investors, perhaps, aren't willing to give them the same kind of multiple they've had. >> so, let's look at it in terms of what it is today, unfeathered capture iing of data, give it t everybody else, monetize it. that is not sustainable, as i think has been demonstrated. then the other standard, the european standard, which is very restrictive. if tasbook were to adopt that standard, its business model would be affected tremendously i'm assuming they're trying to do something in the middle all of these are kind of vague promises we're going to do this we're going to do that
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it's very, very vague. it's not precise and i think that if they don't come up with something that is much more precise that people will start to question whether the platform is, in fact, viable. >> before we let you go, you both invest in tech. given the conversation we're having here today, is this changing how you're making future investments >> not yet because, honestly, our companies are so small when we're investing in them that these things are down the road we're certainly keeping an eye on it. particularly because our companies, direct to consumer ones, are reliant on growing on top of facebook. if their fundamental proposition changes, that could change go to market for a lot of these businesses but we're not there yet. >> definitely going to put more emphasis on looking at data policies to make sure that even though they're small today when they grow that they have the right infrastructure in place to capture the proper data and
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disclose what it is they're capturing. >> thanks for coming in, helping us set up it, eric hippeau and ellie wheeler. >> not only is he an investor on "shark tank" he happens to run a cyber security firm. robert hirshbeck will join us. checking the major averages at this hour dow is up 457 points almost 2%. nasdaq and s&p also up 1.5%. more "squa aeyahd.wkll" ea you know what's awesome? gig-speed internet.
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you know what's not awesome? when only certain people can get it. let's fix that. let's give this guy gig- really? and these kids, and these guys, him, ah. oh hello. that lady, these houses! yes, yes and yes. and don't forget about them. uh huh, sure. still yes! xfinity delivers gig speed to more homes than anyone.
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now you can get it, too. welcome to the party. stocks obviously in the green. even with the rally today we're 2,000 points below the dow's record high. back to help us make sense of it, mike. >> we've seen a lot of reversals. say there's 100 points in the s&p, 3 or 4% you start to look back and say it's actually proven something and that maybe this was just a very volatile, anxious base being created for something down the road i don't know if that will be the way it plays out the fact that it's refused to go back to those february 9th lows and we had all these 1% moves to just churn around, people say no, no, you need a full flush to
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get down there look toward earnings season coming up, it's an interesting setup. past five, six quarters, i've been saying this the market has run up into earnings and then it's a lot of stalemate and good news. >> didn't your mystery broker have a thought on whether you need to go back hard to february 9? >> yeah. this source of mine that i follow for a long time, he doesn't necessarily think you need a full test of the exact level that you hit on february 9th. certainly notwith the same intensity. we got back in that same zone and says, look, there's a couple of 3% down side from around current levels or lower. and 15% upside into may. that's just the training tactical call. i do think a lot of folks are looking at it that way if the credit markets don't tell you that something bigger is going on, if the macro data holds together and earnings come through the way we think, you may look back and say what was it all about >> are we kind of in a range now?
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nobody is talking about getting back to late january or february, right? >> right. >> which way are people thinking things are more likely to go >> i think it has gone on long enough, jon, that people have gone away from that idea that we're going to spring right back up to the old highs. we should keep in mind that at the highs, the s&p was up 7.5% year to date if you worked your way over the next eight months back to where you were january 26th, if you had like a 10% total return year in the s&p and it's not so bad even though you didn't make a new high all this is how you view it. you're definitely in this choppy range until further notice because i think you might have seen a peak in valuations, a peak in risk appetites, credit conditions all the stuff that are the inputs in late january if the earnings come through and the economies hold together, you know, obviously, you can have that denominator go up and it can support higher stock prices. on the other hand, if earnings come through with flying colors
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and the market shrugs and says no, it doesn't matter, then you have to wonder what's going on here. >> sounds like there's more headline risks. equal payday just how big the pay gap between men and women, 20% that's how much less women earn over their careers we'll find out one key reason why. moresqwkll" a "ua aeyin moment. your getting the best but paying way less thing. now get 50% off a smartphone. more for your thing. that's our thing. visit att.com anyone can get you ready, holiday inn express gets you the readiest. because ready gives a pep talk. showtime! but the readiest gives a pep rally. i cleared my inbox! holiday inn express, be the readiest.
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holiday inn express, play [music plays]his". [dog barks] [concert roaring] [music stops] dinner in 5. when everything's connected. it's simple. easy. awesome. welcome back to "squawk alley. efforts to close the pay gap a key reason the divergence exists in the first place. ylan >> the gender pay gap is actually about the mommy pay gap. take a look at these numbers they are pretty stark, especially when you look at college-educated workers at 25 years old, the gap between men's and women's wages is relatively
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small but widens a lot over the next two decades with the biggest difference between married men and married women. married men see their earnings grow 25% by the time they're 45. for married women it's just about 5% using census data, they found it happens to coincide with the arrival of children. as a mom myself, i find that to be pretty depressing here in washington that's considered a messaging opportunity. college-educated suburban women are a crucial swing vote in the midterm elections this year. republican triesing to sell their tax plan as good for women's wages. representative kathy mcmorris rodgers has been out there talking about this, martha mcsally wrote an op-ed saying tax cuts is helping women build the lives they want, pointing to the expanded child tax credit. it also allows saving for k through 12 education and using tax reform savings to
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improve maternity leave. democrats have long been pushing for a national pay leave policy. guys, one idea i'm going to throw out there, maybe companies should start encouraging dads to take more leave to balance th g things out at both work and home. >> i'm all for it, thank you ylan now to seema mody. >> global market rally rising after president xi's comments which, of course, eased some concerns around these trade tensions between china and the united states. the german dax, biggest gainer among the european markets helped by the auto sector and "the wall street journal" reports the u.s. justice department has decided to allow bayer's takeover of monsanto to secure anti-trust.
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shares up 5% volkswagen was considering replacing its ceo. after vw disclosed in the u.s. it had rigged diesel-powered cars to cheat emissions tests. stock up 3.5%. russia, u.s. dollar soaring against the russian ruble since december 2016, in reaction to the u.s. imposing those sanctions on russian oligarchs and some companies, prompting speculation that the central bank may have to delay cutting interest rates russia has one of the highest interest rates in the world right now. look at the stock reaction, rts beginning to fall after tumbling 12% yesterday, down fractionally it was lower by 4% russia clearly a big topic of discussion back to you. >> seema, thanks. some of the protests ahead of mark zuckerberg's testimony on the hill today. when we come back, shark tank's robert herjavec will join us
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so they would be like, here they come, turn off your lights! those three young ladies were teaching the whole school about energy efficiency. we actually saved $50,000. and that's just one school, two semesters, three girls. together, we're building a better california. good morning, everyone i'm sue herrera. here is your cnbc news update at
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this hour. tom bossert, homeland security adviser, has resigned. in a press secretary sarah sanders said the president was greatful for his commitment to the safety and security of the nation a 4.7 magnitude quake shook residents and structures in central italy that was struck by a series of powerful quakes in 2017 bill cosby arriving in court this morning for a sexual assault retrial. his defense portraying a $3.4 million settlement to his accuser, andrea constand, as evidence of her greed. warning not to fall for scammers asking for remote access to your computer. scammers are calling individuals specifically about the ftc's advance tech support refund program. so don't fall for that one that is the news update this hour back downtown to "squawk alley."
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morgan, i'll send it back to you. >> sue herrera, thank you. mark zuckerberg set to testify in front of congress on the facebook role of the cambridge analytica scandal. robert herjavec, thank you for joining us today. >> good morning. >> last time you were on "squawk alley" back in february, you talked about two major factors facing cyber security, response and compliance i realize everything that's going on with facebook and cambridge analytica data scandal, we're not talking about hack there's a lot of debate on whether this is a data breach. a, how do you think facebook's response has been so far and, b, how do you think it will shape the regulatory environment moving forward >> i actually don't think this is a facebook problem. i think mark is doing what everybody who runs a private company is doing they're working with inside the
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rules. it's the largest free market economy that doesn't have a right for privacy. gdpr in the uk even canada has a federal privacy law. i think what we're going to see out of today, regardless of how mark does, we're going to see a federal security data protection law come out of the states it is the role of the government to protect our privacy i hate to say it, but i don't think it's the role of private companies to protect our security i think that we have been selling our data for far too long and in this day and age, that is the role of the government. >> what do you think that regulatory framework should be do you think it's gdpr adopted here in the u.s. do you think it looks like something different? the counter argument to that has been the potential that regulations could stifle innovation. >> yeah. i don't believe that consumers fundamentally don't care about security. it's their expectation that the
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company or corporation is going to do that there's a study a few years ag that asked people if they would give up their social security number for a hamburger and some said they would. if we have to do something about it, consumers aren't i think what we need is a law that protects consumer data. if a company hasn't protected my data in that way, there should be a penalty it is the world of business. and in business, only penalties that have a financial element to it work. look at pci a few years ago. it really changed the face of cyber security in the retail world because there was a penalty if you were a retailer and didn't have good security. >> robert, why do you think there isn't unanimous support, there doesn't seem to be, in the senate for doing something along the lines you're talking about
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and having solid regulation around privacy, around data protection, around citizen ownership of their data? despite the fact that so many companies are just lining up and complying with gdpr based on their business in europe, there doesn't seem to be any kind of consensus that that will happen here in the u.s. why? >> let's give it a little time i really think it's one of those issues that nobody wants to be perceived as being orulean about or being on the wrong side of it if you come out and say the government should do security, it makes you seem like a big brother taking on -- taking something away having better data security and privacy is not taking away our freedom. in this world, where we're all connected and the internet of things and the world is becoming greater connected, someone has to look out for us and it's not going to be private corporations they are not going to go that extra mile to protect our
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security the government needs to change the rules. >> robert, don't you think -- i'm going to play devil's advocate for a minute. don't you think maybe the genie is already out of the bottle consumers have so much data that's already out there i mean, just this weekend, i actually had my debit card hacked, for example, and it was in my purse and it was used at places like dave and busters and a bunch of gas stations over the weekend. my data is out there my personal, sensitive, important information is already out there. whether it's through social media, whether it's through these attacks on big corporations, et cetera, et cetera how do you actually rein that back in. >> first of all, i didn't hack your debit card and i don't know what you were doing at dave and busters. we have to keep in mind, data is not a slice in time. it's fluid it's changing all the time you now have a new debit card. you're going to get a new visa card, change your passwords, i
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hope change your pin number there's a fluidity to information. it's not one place in time so, no, i think that there's an opportunity to protect consumers by having a federal privacy law and putting in some compliance requireme requirements for companies. >> what's your best case scenario on what comes out concrete things that get done? >> i think the best case scenario is the facebook controversy and the entire zuckerberg conversation is going to be fuel on the fire for a gdpr type of regulation. i think the entire issue is the catalyst lis for that and we'll be a couple of away. the senate will get behind this bill because it's good for the country and good for the
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economy. let's keep talking about facebook for a moment. we'll take a close look at how mark zuckerberg says his company is facing the problem and what big changes still remain currently a partner at the foundry group, formerly from twitter, chris, good morning. >> good morning, jon. >> they announce this had data bounty program which seems like a little lost kitten flyer, offering a reward. is it bound to have much impact? >> i actually think it's a meaningful act the reality is a lot of these data companies are -- that are consuming this data are competing with each other and want to compete on equal footing. it's not unusual for one company to effectively whistleblow on another company to say hey, these guys are competing
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unfairly, using your data in ways you don't want it to be used it's meaningful but to your point speaks to the fact that they're a little bit behind -- they're not a little bit they're a lot behind the eight ball here in terms of working back jordan used the phrase in the last segment with robert around genie out of the bottle. the genie is out of the bottle there's only so much they can put back in at this point. >> so, i want to get abstract with you for a moment here if there were a public market for big data, would the price of it over the course of 2018 so far have gone up or gone down based on the various scandals and controversies that we've seen particularly with facebook is data just as valuable or is it less valuable because of all the impending regulations? >> i think it's clearly on a downward trajectory right now. the question about how long that
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downward spiral continues. there's just uncertainty right now. with any market where there's uncertainty, then, you know, i think investors would hesitate and, you know, i look at my own network and the people i know. there's a lot of questions being asked right now about should they be investing or divesting right now it's definitely down will it come back? today i think will be a meaningful part of that discussion when we see and hear from mark. >> what is the business model look like? there's been so much focus, whether it's facebook, whether it's twitter, whether it's youtube, alphabet, and on on and on, about how you monetize these social networks. if data is reined in, how are they going to make money what does that look like going forward? >> the dream scenario has been -- i don't know if it's realistic or not but people in the industry talk about consumers should own their own data and decide how and if
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it should be monetized, like the equivalent of a google ad sense where you could monetize your own blog by having google put ads on it. why don't you control your own data, see who wants it and share it with who you want to, to monetize it. i think that there's a real question about whether that's actually achievable or not as robert mentioned, do consumers really care? you think about what's happening right now. i think it's super interesting for a service like facebook there's a basic value equation that consumers need to think about. benefits minus cost. historically, the cost has been either zero or just opportunity cost is this the best use of my time or should i use another service? now they say wait a minute there's a huge cost to using this service
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then they're looking at the benefit side, is it a benefit to even use this service? some people are scratching their heads and saying maybe it's not. what do i really get out of it when you add the data angle on it, maybe there's a world where i can monetize my data myself if i wanted to. >> chris, thanks for me, i know hundreds of people from my past would cease to exist, for all intents and purposes, if i were to leave facebook make sure, everybody, to stay with us here on cnbc. we'll have full coverage of facebook's ceo mark zucker's testimony. vincent rinehart will join rick next. dow is at session highs. up 24,501. s&p and nasdaq up almost 2% a piece as well. "squawk alley" will be right back need a change of scenery?
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i'm scott wapner is the bull market back on track? we'll debate where your money is likely to go from here mark zuckerberg on the hot seat. trading facebook ahead of that big moment and speaking live to an analyst who said he would buy almost every other stock on his list before the social media giant. we'll find out why back in style bank getting back in style today we'll see you in about 15. >> thank you, scott.
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meantime let's get to rick santelli with the santelli exchange. >> i would like to welcome my guest, vincent rinehart. thanks for joining us this morning. >> thanks for having me. >> listen, i've been saying for years, in many discussions on this trading floor, that each central bank really needs to acknowledge that policy on monetary side is connected, whether it's productivity, it's like water on the titanic. it seeks its own level, whether it's productivity, inflation, deinflammatid deflation. you wrote an op-ed and touch ed on many of these why don't you talk to us on this subject? >> the basic idea is that you shouldn't run monetary policy by looking in the rear view mirror. we don't have the technology to go driverless just yet the fed should appreciate it's part of a bigger world the rest of the world is bigger
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than it used to be from the u.s. perspective. and we do a lot more trade that's been holding down domestic inflation for a while those forces are turning when they turn, jay powell may find he gets what he's looking for, but maybe more than that. >> if mario dragi has a hiccup or mr. corona and abe in japan have a hiccup, don't you fully expect all those issues to wash upon our shores? is there anything central bank could do to work along with but protect itself from other central bank policies? >> there aren't many places to hide look, the fed is shrinking its
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balance sheet. ecb is buying government securities they're signaling they're going to keep rates low for a very long time. that's a gravitational force pulling our yields down. the feds got to worry about its own financial mandate. if it's getting information from abroad that's probably the reason it needs to be tighter domestically. >> one minute left you're also big on debt and the notion that many share with you, including myself, that the more debt you have, ultimately, the less growth you have talk to us briefly about debt and growth. >> i hope they look at the cbo from yesterday it's optimistic in not putting a recession in the forecast. the fact is that when you look
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at a large sample of countries over a long period of time, countries that have higher debt loads grow more slowly during those episodes than the rest of their history. high debt is associated with slower growth for lots of reasons. we don't have a good discussion when politicians are burdened by worrying about debt loads. >> excellent point, vincent. when there's minor crises, usually most of the rules of the road are thrown out the window and that never turns out well. thank you for spending time with us this morning carl, back to you. >> thank you, rick as we await mark zuckerberg's testimony in congress, piper is out with its survey of teens a 75-page document, courtney reagan joins us. >> piper has been doing it for 45 years teen spending is up, both year
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over year and from just the fall survey that we saw up 2% and 6% respectively when it comes to brands, nike is still the top brand for both clothing and shoes. however, it has significantly lost its share from a year ago in both categories adidas is moving in, doubling its share when it comes to clothing and moving markedly is a favorite shoe brand, too nike start to lose its cool with teens about a year ago but the stock is up 20% in that time adidas started gaining traction around 2015 in the survey, which is right around the same time that the stock started moving higher vans, that's owned by vf corp, remember, that holds on to the number two preferred brand when it comes to shoes. adding to its cool is that streetwear and '90s trend surge. streetwear brand supreme may only have a 3% share however that's moved to the number seven spot from the
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number ten spot in the fall when it cracked the survey for the first time if you loved the '90s, you'll be in good company. they're really liking tommy hilfiger and calvin klein, and those are growing in popularity with the teens as pvh co corp shares start to rise as well hanes brand owned champion is starting to trend with some of the teens, at least in some of the categories what's out under armour, didn't crack the top ten for shoes or clothing again. actually, it tied the number one spot for males for the brand they no longer wear. and ralph lauren falled out of the survey's top ten for the first time since 2002. we know what's happened to the share prices of both of those companies. back over to you >> courtney, some of us were teens in the '90s. >> yes, yes. >> so thanks for making us feel
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old. courtney reagan, appreciate it >> here's a live shot from inside the hearing room on capitol hill, where we're awaiting facebook ceo mark zuckerberg's testimony, when we come back, what silicon valley has been saying about the scandal. more "squawk alley" coming up. from the market te when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today.
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you know what's not awesome? gig-speed internet. when only certain people can get it. let's fix that. let's give this guy gig- really? and these kids, and these guys, him, ah. oh hello. that lady, these houses! yes, yes and yes. and don't forget about them. uh huh, sure. still yes! xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party. a little more than 100 points. time story just crossed that says rob rosenstein personally
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approved the fbi raid on michael cohen's offices. goes on to say the president had an angry public tirade monday evening that continued into the private hours. as the president fumed about whether he should fire mr. rosenstein, cramer talked to this this morning, this idea that market is going to have to balance headline risk regarding the fbi and the mueller probe. >> seems to be doing it so far this morning and as we await mark zuckerberg's testimony, interesting, facebook has cracked $160 a share, which is an interesting level for the stock. it dipped below that back march 26th, and has had trouble getting above it we'll see if mark zuckerberg's testimony, the candor that many are hoping to see from him, and the apology, this has been called an apology tour by some, actually helped investors to feel like the worst of the scandal is behind facebook >> information tech is one of the top performing sectors
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today. it's only behind energy, materials, and really sort of going back to this idea of the market balancing if you look at what's really rallying today, boeing is up almost 4%. it is these names that are more exposed to trade that still seems to be dominating the market action, at least for now. >> yeah. boeing, one of its best days of the year trying to get back to the 50-day moving average we'll watch that oil, by the way, continues its gains. $65.24 on west texas more "squawk alley" continues as we await testimony from mark zuckerberg on capitol hill stayitus wh we just switched to geico and got more. more? they've been saving folks money for over 75 years. a company you can trust. geico even helped us with homeowners insurance. more sounds great. gotta love more... right, honey? yeah!
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we are awaiting facebook's mark zuckerberg on capitol hill in just about two hours. deirdre bosa joins us from facebook headquarters in menlo park ahead of that tech is the home team out there, and facebook and mark zuckerberg, one of the most popular players. what is the reaction out there to him coming to d.c. to testify in the mess that facebook finds itself in? >> well, jon, there's really the sense in silicon valley that facebook is just the catalyst for a wider oversight and regulation of the tech industry at large, as you well know
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one i just spoke to called this a seminole moment and said while facebook is under fire, much more tech, including the big giants, are going to be under more scrutiny going forward. of course, we have watched this play out in the markets. we have seen what hpenned to social media stocks like twitter and snap, bearing the brunt of what's been happening to facebook since the cambridge analytica scandal. there is this sense here that regulation is going to have a wider effect on some of the even bigger, largest tech companies like google, amazon, and even apple, despite tim cook's confidence that he and his company wouldn't be in this position you take a look at alphabet, google is just as data hungry as facebook in terms of its advertising model. it has location data on us, our search history, it also gets our media preferences through youtube. amazon is building its advertising business at a very rapid pace estimated to be worth about $3 billion a year now so even apple, jon, they let a huge number of developers onto their platforms.
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this is coming, and i think here in silicon valley, the tech world is responding to that, and some are speaking out already against zuckerberg and what's happened at facebook >> deirdre bosa, as we await the testimony, thanks. >> they're buying ahead of the hearing. facebook, $160 it was $149 on march 26th. let's get to the judge >> welcome to the halftime report we begin with two developing stories this hour. the major rally on wall street and the appearance by mark zuckerberg on capitol hill for his first day of testimony on the data scandal we will go live to washington in just a moment for a preview. first, let's get right to the market stocks are erasing april's losses fears of a trade war with china subsiding over night we're wondering where it all means to where things will go from here. we have a great group to debate that question.
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