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tv   Squawk Alley  CNBC  June 26, 2017 11:00am-12:01pm EDT

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securities and telecom the best performing sectors financials also in the green bank stocks in particular higher after least in part the italian government reaching a deal that was involving two regional banks. the banks feeling the mini ripple he vekts. the big banks have been underperformers so far this year that does it for this hour of "squawk on the street. let's send it back downtown for start of "squawk alley." >> thank you very much good monday morning. 8:00 a.m. at facebook headquarters in california 11:00 a.m. on wall street. "squawk alley" is live
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good monday morning. welcome to "squawk alley." i'm carl quintania we go to d.c. with hampton pierson. >> in essence, we have the supreme court essentially partially reviving the trump travel ban here's the key points on what the court said decided to do today. they've agreed to hear trump appeals on rulings blocking the travel ban, six muslim majority nations. they're also lifting most of the injunction that blocked it from being implemented. and they're granting trump's emergency request allowing parts of the refugee ban to go into effect now the case will not actually get argued until this fall before the full court, a court now at full strength reading one of the more interesting excerpts from the opinions of the various
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justices from justice clarence thomas in writing a dissent saying in part, today's compromise and that's in effect what they worked out, will burden executive officials with the task of deciding on parallel contempt whether individuals from six affected nations who wish to enter the united states have sufficient connections. he also cuts to the chase the compromise will also invite a flood of litigation until this case is finally resolved on the merits back over to you >> when i read online what i see when it comes to what they're going to allow and disallow in term of people being able to come into the country, if you don't have some bonniefied connection to the united states, you can be subject to the an do i understand that correctly >> that's a pretty good early read absolutely >> so when you have a dissent, he's saying it's going to be too hard to figure out who fits into that category and who doesn't? >> yeah. i mean, it's setting up it's own
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set of brand new problems until we really cut to the chase this fall and have a full argument on whether or not the whole ban is in fact constitutional >> got it. all right. thank you. >> gorsuch and thomas and aledo with this decision, saying they'll rule to uphold. >> in the entirety none of the slicing and dicing >> the conclusion is the government made a strong showing and likely to succeed on the merits that is quoting from that condition occurring opinion. so big news in scotus today. also showing shares of facebook this morning hitting all time highs on news it's in talks to produce tv quality original programming. reportedly willing to spend up to $3 million an episode on production alone that's according to "the journal. they're looking to launch their own original content by the end of the summer. for more on this we bring in senior facebook analyst in our own julia borsten who talked
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about add content. houchl a game changer is this. >> look, we already know that facebook very interested in producing original content and they've already commissioned and are partnering with companies such as buzz feed and box and conde nast i think what is most notable about the headline out this morning is this idea that it is up to $3 million that is the cost of a show on amc or even netflix. it seems like facebook is out there really looking at the range of potential content and they really just want to get every option of content on facebook on your phone so people never have a tron go else. where. >> brian, is facebook late to this party silicon valley seems to exhausted every other option before going from premium content. i mean they tried to push the live thing once it was taps playing piano
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and user generated content now they're figuring out, no, we need professionals to do this and pay. should they have done this a year or two snag. >> i think if they wanted more money, yes but you can argue that going back four years ago when they were most aggressively starting to push the idea that oh, facebook is just like a super bowl ad and you can get the same audience and just as infective, that argument was always so hollow because large brands make -- spend money on traditional tv properties because they want the brand association of premium content facebook never had that. now if you're facebook, why not focus on the cheap content that you already have it's next to -- it takes up to no time in a consumer news feed and persuade advertisers to spend a lot of money on it why not give it a chance that was not an unreasonable approach now here is simple math. over the next five years or six years, facebook and google and the restst digital advertising, 15% a year, they'll be 100% of
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all advertising in the united states that's not realistic, right? but after that, you get to like a 3% growth rate f they don't start investing in traditional tv like content, the growth will slow more meaningfully >> i think what's really interesting -- >> i don't know that they should be going to this party at all. you and i have this off camera discussion frequently like what is the latest round of dumb money in hollywood whether it's a region of the world or sector of an economy that has so much money it doesn't know what to do with to me, this whiffs of just all of this cash and silicon valley. it doesn't know what to do with it and every single industry in history that's gone into hollywood has some synergy that they imagine whether it's coca-cola buying columbia pictures back in the '80s to today trying to get in on this game and very expensive price, by the way >> well, i think you're totally right. we have this conversation. we've been having this conversation about dumb money in hollywood for years. and usually we refer to dumb money in hollywood is either
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it's either a foreign entity whether it's money coming from china or india or the middle east steering the oil boom >> exactly or even from hedge funds but i think what is different here is that money is usually going to movies. this is about television and right now we're what many people are calling peak tv there is more tv produced now than ever because of the rise of amazon and hulu and netflix as the big, big buyers of television shows i think what's happening here is that facebook is trying to build out the portfolio. you want to make a phone call, you can do it on what's app within misefrpger. you want to communication with a company, you can do it for manager relationship with customer service via messenger they want to make sure everything you want to do online can you do within the ecosystem. what this is about and why i don't think it's dumb money is because facebook is going after tv ad dollars. and as we heard a lot last week in kahn from the advertise serz that there are major concerns about brand safety and
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measurement. and so if you -- if facebook were to embrace a more traditional type of content, 30 minute tv shows, then they can reassure advertisers about grand safety the advertisers know exactly what they're buying. and they can also use a more traditional measurement of how long people are watching so i think that this is a way for facebook to go after tv ad dollars and that's why it may not be such dumb money >> yeah. brian, i wonder whether you think this brand safety narrative is a strong enough pushback by traditional broadcasters and if that's enough to at least help them maintain the marketors they have for now? >> oh, absolutely. i concur with everything julia just said. the reality is that marketers really were oblivious to the lack of brand safety in a lot of digitsal advertising over the last several years and so, yeah, being able to say, hey, we're digitsal. we get targeting we get reach, and you get content that you can feel safe having your brand around,
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absolutely that resonates. but i would argue that this is not about dumb money you know, facebook has a lot of smart people this is not quite the same as nonmedia players, nonadvertising companies jumping into the space. let's be clear, facebook is the second biggest seller of advertising on the planet. it is a vast majority of the revenue. they're in the advertising business this sen tire this is entirely synergistic this is a lower piece of revenue for them. >> they were really smart. coca-cola was really smart in the '80s. >> i'm not sure that, you know, the japanese goes the way facebook does. but i don't think she bought it. >> no. >> i think it's going to be really interesting and people are used to watching short form content on facebook. we'll have to see if people want to sit and watch a half hour show and if they can even get used to watching facebook on the tv screen the way you have the netflix app on your tv >> guys, thanks so much.
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appreciate it. >> see what i started there? >> we got some breaking news we go to morgan back in headquarters >> that's right. news from arconic. it is discontinuing global sales of reynobond pe and issues that have ariz inin the grenfell tower tragedy. the company will continue to support the authorities as they investigate this tragedy and just for context here, this is on the heels of that deadly fire at gren fell yfell tower j coup a couple weeks ago it spread up the building because of the installation and the combustable cladding, the cladding made by arconic that was on the building due to refurbishment in the last couple of years so just a couple notes more from
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the company. the company pointing out it's a series of kpoen thaents arconic does not sell the installation, for example. it created typically by a contractor ar a finisher fwhaut light of what happened, it has discontinued the sales of this product for high-rise use that is effective immediately even though it is still technically permissible including in the u.s. under certain circumstances based on local building codes take a look at shares of arco arconic, they're down 7.5% back to you. >> all right thank you. significant cloud news out of oracle this will morning. the company announcing a deal with bank of america to supply cloud-based erp. that is enterprise research planning at financial applications to bank of america's international general ledger and broker dealer system. i talked to oracle ceo mark herd this morning about this deal here are a couple things i think are most interesting one, bank of america announced a big erp deal with oracle rival
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sap nine years ago oracle was a finalist for that deal now it appears that eesoracle ha chance of getting that back. oracle sl going to run this cloud operation on bank of america's premises using oracle hardware and people. it may not technically be hybrid cloud. it is close to that model. the reason why it's not hybrid is oracle sl running this themselves on bank of america's premise. herd telling me he expects to see more of this kind after range ment and highly regulated str st industries like cloud. they're getting the updates and there's a subscription type relation swhp bank of america. oracle uses this as a foot in the door it comes at the same time google is eliminating ads in g-mail that advertise against the contentst mail y are they doing that enterprise customers are spooked by ads and consumer g-mail even though google said we're not reading enterprise e-mail.
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a lot of businesses still didn't want to touch it they feel like going sl that company that reads your e-mail and advertises against it. >> so i'm confused it's not going to be in anybody's e-mails now because they con flat the two? >> exactly i think this shows overall -- force. >> so i as a consumer won't see the ads anymore. >> you will see ads but they're not based on the content of your e-mail they'll be based off your searches it's kind of the enterprise having to adapt to what customers want based on needs for security you're seeing that in this oracle bank of america deal on premise and also google trying to get onboard >> not far from the record highs set last week. >> shares of avis surging this morning on the news of self-driving deal with alphabet. >> hey, guys that's right entering a partnership with avis
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budget group the deal is limited to self trifg car pie lat program in phoenix, arizona. af sis going avis is going to support that there is going to be cleaning, charges and waymo's fleet. they can better compete in the space with the likes of ub eastern lyft remember that avis owns zip car, the rental car service that has over a mullon members. i was chatting to our own phil lebeau about the deal who raised an interesting point he thinks does more about the dire straits of the car rental companies than it does did b. waymo. yes, they're surging on the news this morning year to date, they're still lower by 30% you're seeing hertz shares pop on this news as well on the prospect of more deals among rental car companies and autonomous vehicle tech companies. this is the first of its kind. now for waymo this is just the
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latest partnership that recently announced it is adding hundreds of chrysler minivans to build a 600 vehicle fleet. it is also teamed up recently with ride hailing service and they're also in talks with honda about a possible deal to put its technology in test cars. guys >> thank you for that. what a story on your side of the country this morning as well when we come back, the latest on the president's upcome media with india's president we'll talk with one of the largest indian airlines and hear what he hopes to come to have day's talks. and martin schreli is riving in court for day one of his court date and they'll address the gap in harment laws when "squawk alley" continues.
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president trump expected to welcome the indian president to the white house today following a meeting with numerous ceos yesterday. seema moddy at the white house >> they're spending a lot of time in washington, d.c., following the mesh tech council at the white house last week some of the biggest names in silicon valley met with the prime minister for a private meeting. i was told it went on for about an hour and a half ceo tim cook of apple, i was told, got some one-on-one time with the prime minister. we caught up with him and he seemed to be very receptive and positive about his interaction with mody.
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listen in. >> it was fantastic. >> he's always receptive he is open and smart and receptive. >> biggest sticking point? >> i don't think was a sticking point, per se. >> that was j.p. morgan's jamie diamond. wall street is recognizing india as the next frontier in tech with 277 million internet users, 15% growth in smart phone shipments and the number one android market yet msh yet, many indian executives say that india is considered the other asia sirp power hiding behind the shadow of china that's why this this meeting the prime minister of india when he meets with president trump will look for guidance from trump as to how he views india in his broader foreign policy aagenda yachlt keep in mind so far in six months of trump's presidency, india has been absent from the foreign policy discussion back to you. >> seema, one of the great hope
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is mody would make the indian economy more market oriented, far less government intervention and theory was his view. how is that going? >> he has relaxed a lot of rules around foreign direct investment into india that encouraged a more positive ecosystem for companies here in the united states that are trying to invest in india. there is a lot of work that needs to be done a lot of executives will say that corruption, bureaucracy, red tape sh those are big headwinds that make india a tough place to do business in. >> yeah, all right thank you, seema and coming up, a decency pledge gaining ground in silicon valley after a venture capitalist steps down after a bombshell sexual harassment report more ahead when "squawk alley" returns. ♪ minutes old. ♪ a baby's skin is never more delicate. ♪ what do hospitals use to wash and protect it?
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markets closing in the united kingdom and across europe stocks beginning the week in the green led by the banks because of what happened in italy. italian authorities said they'd be willing to spend up to $17 billionure yoez of taxpayer money as part of a deal to wind down two failing banks government is paying 5.2 billionure yoez to take on the good assets of the two banks they've been hurt by bad loans, insufficient capital not a lot done about it. remember, taxpayer bailouts of banks was supposed to end after the whole ordeal in cyprus however, somehow the italian managed to circumvent those rules again. in the uk, conservatives in northern italians, democratic unionist party struck a deal to back the government of prime minister teresa may. the agreement includes an extra with one billion pounds for northern ireland initiatives allows them to govern despite losing the parliamentary majority in elections earlier
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this month let's buy them off necessarily finishing up sharply on the third point has taken a 3.abillion stake in the food jujt hedge fund is pushing for changes at nestle. year to date high here gain of 17%. it is calling for the sale of the company's 23% stake in loreal they're hitting a record high in today's trading. let's send it over to sue herrera with the news update. >> good morning, michelle. good morning, everyone the mother of the black motorist killed by a minnesota police officer has reached a $3 million settlement in his death. the officer was aquitd of manslaughter earlier this movement. a brush fire in southern california climbed over hillsides near a los angeles freeway and forced road closures and evacuations. close to 100 acres were burned in just 12 hours more than 70 homes were left without power. greece's government is urging striking garbage collectors to return to work after a ten day protest left huge piles of trash around
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athens and a heat wave is expected later this week. striking unions are demandin the government provide permanent jobs for long term contract workers. >> and a new study suggests cut ya backs to medicaid may affect the treatment of breast cancer they looked at the data in tennessee, a state that reduced medicaid ben nits 2005 overall, women were diagnosed at later stages of the disease and had more delays in their treatment. that's the news update this hour back downtown to "squawk alley." carl, back to you. >> thank you very much when we return, why reid hoffman is calling on silicon valley to create an industry wise hr function but we've been talking about content today. former paramount chief in the latest series of bifrpg. >> do you think it's weird when someone like jeff bezos is thanked at an awards show? >> notal all
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he took the risk he's a disruptor they're making terrific movies and spending a lot of money. the more people that you can go to to get the necessary funding, the better it is for creative talent when there are only four or five studios, that means if they say no, you're in trouble. when there is netflix and amazon and on and on and on, that means if i was a filmmaker, i have lo tt.myortunities to get moe dei veha , what'd you got here? this bad boy is a mobile trading desk so that i can take my trading platform wherever i go. you know that thinkorswim seamlessly syncs across all your devices, right? oh, so my custom studies will go with me? anywhere you want to go! the market's hot! sync your platform on any device with thinkorswim. only at td ameritrade
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market took a spill mt morning session. dow was up 110, fell a flat line as we saw quite a reversal in the f.a.n.g. got almost all of f.a.n.g. open positive apple was the best dow component. reversed, we'll see where the session is by the end of the day. dow up 37. >> yes, indeed >> decline in the price of oil >> yeah. that's certainly not helping it's been an interesting run for the f.a.n.g. stocks. you wonder based on all of the politics, the meetings going on, is there finally some effect of the uncertainty happening there as well? >> yep >> can't ignore the bond market as well. 212 is testing the lows of the year on the ten year 530 spread continues to flatten here as we have weak durable this is morning, too >> people might get more and more nervous if it is telling us something about the economy and then hence the future profits. >> binary capital vc has resigned from the firm after a growing scandal involving his treatment of women who he interacted with in business
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settings here's what partner jonathan teo had to sachlt i trusted my partner and it's clear i shouldn't have the predatory behavior justin has been accused of is deplorable and there will be zero tolerance at our firm of any conduct that is demeaning to women. reed albergotti is a reporter with the information and joins us now about way by phone. reed, you broke this story last last week. and there's been quite a lot of chatter across the vc strooi industry since then. a decease ency pledge. what is unique about this story besides the fact that three women agreed to be named in spes fig the allegations ghens investor >> i think the reason the story really resonated and caused such a stir in silicon valley is that this isn't just an isolated incident this is a widespread problem in a affects a lot of people. i think up until now there's been kind of a don't ask, don't tell policy in the valley about this type of behavior.
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and, you know, what we did is find a story where we had six women who detailed the stories to us, a seventh case that we also found out about and three of them went on the record so there is absolutely no way you can refute the claims. and, you know -- >> reed, can i interrupt you >> yes. >> what are the claims for people just waking up and haven't ha heard of this story, what happened >> these women all said that in their business dealings with justin calbek they were faced with inappropriate advance ands in some cases sexual advances. he would be meeting with them talking about, you know, a potential investment and, you know, with a female entrepreneur and say how about we go to my hotel room and, you know, it was the same sort of story over and over again. and, you know, i think many of the women just felt like it was
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being put into a horrible situation. andagain -- >> is there any evidence, reed, did they -- is there any evidence that if and when they said -- i presume they said no if they're coming out now. i don't know did he not do an investment in the company because of it? >> no. i mean, we didn't allege in the story that, you know, there was any sort of outright quid pro quo in any of the arrangements but there were cases with the women themselves stepped back and said i'm not going to deal with that firm it cuts off one of their opportunities for financing. you know, again, it is a problem in the valley. >> and, reed, correct me -- i read quite a about it bit of tho in the valley, entrepreneurs come forward with their own stories. was there a case in this story where it went wasn't just offers, you know, propositions to come with me to a hotel room but inappropriate suching, physical advances as well that were clearly not welcomed?
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>> yes there was one case of entrepreneur named lacy sue who was at a meeting with him. they were discussing an investment in her company journey and callbeck reached under the table and grabbed her thigh, she said. and he since apologized for. that yes, there were cases of that >> so you said that this is widespread, right? >> yes >> where does this go from here? >> i talked to so many women about. this i think that there say feeling that it needs to change. i think people don't really realize the effect that it has on women a lot of venture capitalists brush this off as sort of what happened, you no, what happens in the valley venture capitalist investing is very social it happens in bars and restaurants. and i think people turn to blind eye to the problem i think now, you know, you see
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reed hoffman posting and based on this article creating this decency pledge that a lot of venture capitalists sign on to >> reid -- >> i think there is an awakening. >> reed, to what degree is this a cultural follow on to the uber story? that's another case where you had a woman engineer come out, use her name and specifically detail her experience and prompt change for women engineers and culture in silicon valley. is this kind of a movement that we're seeing not just in the worker ranks but also among entrepreneurs where there's a cultural change being forced there? >> i absolutely do i mean it's one reason we decided to go after this topic and write stories about it something is changing. people are willing to listen now in a way this they weren't before and you have seen it -- i think it has a lot to do with the election and the reaction to that and you saw the women's march on washington. you saw the bill o'reilly
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reporting. i think it's all part of a sort of second -- it's almost a second -- the long tafl the civil rights movement, if you will >> okay. reed albergotti will continue to follow this storey it seems to pop-up more and more people speaking out about treatment in silicon valley. >> it's also the nakt this guy is not a household name, right he's not that powerful compared to it was a much bigger name and you're a woman who needs money, you're far less likely to be willing to put your name on the record and come forward as a result of causing trouble, et cetera right? >> he is pretty well known it's not perkins, but there is, you know, when you're looking for money, you got to go to a number of different places and you're worried about if you get bad mouth by one firm will it affect you across others. >> word spreads fast in a community that smachlt martin
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shkreli is in court today. first up though, rick santelli, what are you watching? >> whoa. you're not allowed to see this yet the we're going to be drawing some charts of ten year note yields. we do this a lochlt you heard all of the commentators talking about 212. 'ltey iimrtt? wel ll you after the break
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jury selection begins in the fraud trial involving martin
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shkreli. >> carl, jury selection is going on now it may be kind of difficult to find a jury here starting off the questioning of the jurors the judge told them it's okay if you have an opinion about this because there has been media attention aren't case. as long as that opinion doesn't mean you can't be fair when you're deciding the fact of the case they dismissed about one in five jurors that they questioned on that particular topic. so about nine people were dismissed. now they're going through this expected to be a six week long trial. they're going through just sort of the commitmentes for the summer and dismissing a lot of jurors in there. so originally the judge said she expected the trial to actually start tomorrow morning after jury selection was finished. we'll see if jury selection can actually be finished today now martin shkreli did arrive in federal court this morning on this government case they charged him with eight counts of securities fraud, conspiracy to committee securities fraud and conspiracy to commit wire fraud he pleaded not got all of the charges. they have nothing to do with
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what made him famous which is raising the price of an anti-pair sidic drug by 5,000 percent overnight. the charges have to do with what did he before with hedge funldz and a previous biotech company the government is saying he is using retrofin to pay back investors he defraud in the hedge funds. jury selection process is still going on we'll see if we start the trial tomorrow the judge starting out saying this promises to be a interesting an educational case for all jurors here. so we'll be here all day inside the trial and bring you any more news back to you. >> all right thank you, meg and for more on this, let's bring in john coffee, professor of law with colombia law school. john, thank you for joining us i'm wondering is the case itself what is most interesting here or are there particular things that we'll get, you know, around this case talked about that are going to shed light on the industry that are particularly worth following? >> i think the defendant is much
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more interesting than the case this is a pretty standard case in which allegedly money was stolen from one company to pay off the obligations he owed to the investors in his hedge funneled but what is you unique is the defendant. mr. shkreli is not like a donald trump, he is unpredictable and a narcissist you know the standard rule in all white collar criminal cases is that the defendant should be seen and not heard he should be contrite and silent i'm not sure that even his lawyer, a very experienced lawyer can really control mr. shkreli. that will be the big issue as we get into the trial. >> mature making chefrns to the fact that he loves to actually get on his in house camera and talk for hours at a time even when he's not supposed to be talking about his case you know, the judge said it's okay for you to know about this -- about mr. shkreli.
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but do you think it's possible, professor coffee, that can you find a juror that doesn't know this is the guy who raised the prices on all these drugs on this drug and as a result he's really seen as the bad boy of pharma if you were defending this guy, what do you do >> well, i think can you probably find jurors who don't know about it. he's not quite the same household word that mr. trump is but they may hear about him as it goes on jurors if they're not sequesters talk to their familiar lishgs friends. and they'll hear about what's going on in the press or what's going on in tweets i think there shkreli is very ill advised if he sebdz onds ou tweets about his case. >> how much should the pharma industry be worried about this case even though companies are not directly involved, here's a guy who has brought a spotlight on the industry that's been mostly unwelcomed is there reputational risk for
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the whole industry here? >> i think the industry sees him as an outlier, someone who is way beyond valeant who also did the same practice of raising drugs by 5,000% or more. and they'll say this case doesn't involve the industry in fact, it involves the pharmaceutical company being a victim it was lewded, allegedly, by mr. shkreli. it won't help the industry that he's getting this attention. >> would you have him take the stand if you were defending him? >> i don't think his defense counsel will want him to take the stand. the defendant can assist his his trial. i think he'll be advised that you lose so much more if you open yourself up to cross-examination and there is so much that he can be cross-examined about including his honesty and his prior tweets if you let the prosecution read back the tweets and ask him how he can possibly have said that
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and how it contradicted his defendant's theory of the case, that's just going to invite the jury seeing him as someone that is reckless. i would suspect this counsel will not have him testify. >> well, we'll certainly be watching this case for all those reasons. john, thank you for joining us john coffee from columbia. >> coming up, stocks losing some gains we saw this morning as we mook to close out first half of 20re "squawk alley" next h the o? 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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let's head to rick santelli. >> good morning, carl. you know, in march of this year we hit a 263 yield high. that made sense. made sense to me it was an important resistance point actually going all the way back to mid 2015 we never quite hit it. but old important areas never go away they live to be important on another day. this is a technician it's always about timing levels can you always pick key levels it's when you're going to hit them and what ranges you have before and after so if we go to march, there is your 263 but what we're going to try to do is i look up at the board and see us hovering close to the low yields of the year around 212, this is figure out where it's going to go next so here's the current chart here we're at 212 this is the area we're going to pay attention to just put it in perspective, this 178 low, that was the friday before the election. so that was november 4th
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in a very short number of days, this ends up being the monday after the election and we're already up at 226. that's 48 basis points that's big so now let's get to the meat of the matter okay let's zero in on that basic weak plus and what we're going to do is 178 to 226, if we separate them as i said it's 48 basis points what i have found over the years is when you come up with these big moves that no matter what size the volume is it really doesn't matter when you cover this many basis points and that short a period of time, what many like to do is divide it in thirds. you look at it in thirds so if we divide it in thirds, each one of the thirds is 16 basis points so you add 178.16, 20 and then finally 226. the point is that we have been very close to this level i would suggest that at least using this methodology, it's only one tool in the toolbox
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you need to have a variety of signals. and then pick what seems to be fits together and gives you a prioritized trading strategy 194 and 210. put asterisks on them. put them on the your chart and you put giant lines on there and you try to watch 210 could hold but based on the way this thing is trading, especially considering the 263 high fits so well, 194 might be a more appropriate measure, but in either case, you always want to keep your powder dry, make sure you look at closing yields, and try, of course, to avoid the trigger being set on a friday. carl, back to you? >> nice master class there, rick >> yeah, a technical analysis on bond trading wow >> i learned something rick, thanks so much we'll be right back on "squawk alley. coming up tomorrow at 10:00 a.m., a big interview, the ceo of kroger, rodney mcmullen following that news that amazon is buying whole foods. had a big impact on kroger stock moowon ocno will be with us torr, lyn bc ♪
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president trump meeting with the prime minister of india today. for more on its impact on u.s. and india relations, let's bring in jason singh, operating some
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312 flights a day. good to have you here, a.j >> good to be here >> as the ceo of an indian company, what does it mean to have mody meeting with president trump today? >> i think it's an incredibly important meeting in an incredibly important relationship as you know, india is growing at a very rapid pace. it's one of the fastest growing economies in the world today indian aviation is also the fastest growing aviation market in the world we are growing at about 20 to 25%. and the indian economy is growing at around 8% so i think there's an incredible amount of stuff that the two countries can do together. and in that context, the modi/trump meeting is really very important >> ajay, i'm wondering your take on tech's recent incursions or attempted incursions into india. apple, at first, wanted to sell refurbished iphones in india and now they've taken a different step actually manufacturing the
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iphone se there. how important is it to get that domestic manufacturing and more of the economic benefits from tech actually living in india? >> i think it's only natural that india will use its market to leverage manufacturing within india. as you know, mr. modi has an ambitious program. it's called make in india. and he's encouraging companies from across the world to come and make in india. and i think apple's step is extremely important. it's a sign of things to come. so it's not that only indian companies need to create jobs for americans. as you know, a large number of orders have been placed with boeing if india is to give access to its markets in such an incredible way, i think it's really important that american companies should understand that
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india needs manufacturing within india as well. and american companies need to support the make in india program, as well >> ajay, the success that indian americans have had in this count country, founding companies, being employ 2 through 10 on very large companies, do you think that the white house wants to champions, wants to limit, is agnostic on? >> i don't think it's for the white house to champion or limit this this is in the natural progression of things, that we have so many incredible indian ceos. as you know, microsoft is headed by an indian as well as google and so many important, important companies in the united states i think it's just a sign that these companies have now moved beyond borders and we need to work together, india and america, to make sure that both countries can prosper and people on both sides can prosper. >> some people say it's a sign
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that it's still way easier to do business in the united states than it is to do business in india. i asked seema a question earlier, i'm going to ask you, the great hope of modi was he was supposed to make india a better place to do business. i've heard him described as the ronald reagan of india is he? >> absolutely. i think he's a very, very strong prime minister he's doing great things for our country. great work happening on creation of infrastructure, within india. ease of doing business, one of the hardest things to solve in india. we've done extreme ly well over the past few years our ranking is up over 50 years from where we started and still a very, very long way to go. and it's clear we need to do much, much more. >> ajay, i'm curious, on the indian side, how is this conversation playing out on the h-1b visa here and the changes that the trump administration has talked about making, raising
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the salary requirement what are the follow-on effects you expect to see from that? >> i think h-1b is important for several indian i.t. companies, which send people to the united states to work but it's also incredibly important for american companies that need this -- these people with high skills, to come and work within this united states it's -- so i don't think that this is something which works for both sides and of course, any movers to limit this will hurt american companies, as it will hurt indian companies so i think it's -- it really needs to be thought about again. >> chart's been floating around today, given the supreme court news, of companies that have the most h-1b applications it's companied like infosis and tech mohindra. >> i'm sure it will be discussed
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and they'll try to reach some accommodation, because it impacts both sides equally >> do you have any h-1bs you run a domestic airline in india, with right? is this part of your world at all? >> it doesn't impact us at all in fact, what it does, we have placed an order for up to 205 aircraft with boeing these aircraft will be manufactured within the united states this is a $22 billion order. it creates 132,000 high-skilled, high-paid american jobs within the united states of america we are completely on the other side we are actually helping create jobs in america here >> got it. ajay, good to have you on, on this important day for india here in the united states and at the white house. >> thank you >> 30 seconds to the top of the hour we continue to watch the markets as it gets back some of the ground it lost, dow's up 50 points again, watching closing, tech today. and that bond market lesson with rick, as we see the ten-year
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floating with years for the year >> what does that flattening yield curve mean i think the jury's still out that what we saw in the tech sector when people were so terrified, is that over or still sniffing around out there? you know >> we'll see i think it's still out there the tech stock is doing well at this hour. fitbit, blackberry and pandora, not exactly safe let's get to the half back at hq and welcome to the "halftime report." i'm scott wapner welcome to f.a.n.g. week over the next five days, we're going to discuss and debate the stocks that have driven the markets to record highs. facebook, apple, amazon, netflix, and google. >> so i like to believe that mark zuckerberg is the steve jobs of my generation. >> amazon just bought whole foods, and so i think they're just like taking over. >> i was watching netflix probably an hour and a half ago. >> it's like life.


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