tv Squawk Alley CNBC August 25, 2017 11:00am-12:00pm EDT
good friday morning. welcome to "squawk alley". i'm carl quintanilla dow is at 44 the trump administration gearing up for a major push on tax reform as you probably know. chief economic adviser gary cohn giving a wide ranging interview to the "financial times" saying the president will start being on the road making major reasons to justify the reform. u.s. managing editor for the "financial times" is here. good to have you with us >> great to be here. >> a lot to unpack in this interview. i'm curious to know what you consider to be the lead at this moment >> two keys. one key is obviously grabbing a lot of attention in the american political world is the fact that gary cohn has made it very clear that he disapproves of what the president said about the bill.
he's wrestled with his conscience about staying in his person or not. but as a jewish person he doesn't want to be pushed out neo-nazis chanting jews shouldn't replay us. but we're interested as a "financial times" this new push on tax the fact that the white house has decided that tax is going to be the absolute top priority this autumn and going to try to appease their voters and republicans by executing their tax reform, they hope. >> can you talk a little bit about that part on charlottesville? was that conversation just natural? it feels a lot of these statements including when he said citizens standing up for equality and freedom can never be equated with white supremacists, neo-nazis or the kkk were careful and thoughtful. almost read like a series of
statements like mnuchkin put out. >> this was not a statement, this was a conversation, but we did go back and forth a bit and his comments, his words were tidied up on this point because he felt very strongly he wanted to put a balance of comments this is obviously an area that he has been wrestling with deeply it's simply a description of what's been going on he's been communicating with a wide range of people about what he should do he felt he wanted to get his words right on this point because loose words on the issue of racism and anti-semitism have caused all manner of heartache and grief in the last few days >> i'm wondering the extent to which you think based on this conversation with gary cohn the approach to tax reform will be
bipartisan there's so much friction in congress president often talks about wanting to ram things through. republicans only did gary cohn signal any kind of bipartisan approach. >> we asked him that of course he said they would love to do something on a bipartisan basis they are keen to try to see if there's a way to work with the democrats. the reality at the moment or the climate is so poisonous and people are divided on policy issues that they know it's going to be extremely hard so the thrust of the approach right now is that they are going to put this over to the ways and means committee. they are hoping to push it through to reconciliation and essentially that's what they get. at the moment the white house is saying they want to leave it to the committee, to congress to try to trash out the precise details. they are doing that because they want to essentially respect the process of congress but at the same time some people might say it's because they recognize that the white house is trying to
dictate at the moment may not be the most effective way to advance policy >> markets still wrestling with some basic questions about what the tax package would look like, but to hear cohn tell it to you these committees have been talking to each other for years. it's his job to put flesh anticipate bone on it. the suggestion means there's a lot of work already done is this a crunch in the fall or not? >> frankly i think the last nine months have made anyone who is in the business of predicting what will happen next in politics pretty darn humble and cautious so, i would you please be predicting in what will happen the big six, the head of the ways and means committee along with mnuchkin and cohn have been talking a lot already. that's a key point to stress they think they have a skeleton of a deal in place the republicans are very keen to
have some kind of tax reform to go back to their voters with and actually show they've done something. third point we know there's incredibly strong business pressure right now on the president to try and get tax reform moving. so, you add those three elements together and, yes, it does appear to be a lot of impetus behind tax reform but as ever the devil is in the detail and frankly right now there are a lot of details that will be very, very hard to try to square off such as if you don't have the border adjustment tax how would you get revenue to make a package that is revenue neutral after ten years which is what you need for the reconciliation process such as what will happen to wealthy people in terms of their tax cut. or will it end up being neutral for them as well a lot of issues to fight through in the coming weeks. >> house speaker ryan said
yesterday that the committees have to do this back and forth work he doesn't want toed a adjudicate this on television. everybody is wondering about this cohn statement. did you get the sense the president, the administration knew he was going to make these comments to you, knew he was going to say the administration has more work to do in condemning neo-nazis and white supremacists we're trying to figure out whether the president is going look at this interview as being not loyal to him >> it's going to be interesting to see how the president reacts. what i can tell you is that this was a formula of words chosen by gary cohn and his family very much on his own basis. whatever you think about gary cohn and i know opinions are very divided in new york about whether he should resign, could resign, et cetera, et cetera whatever else you think about
that, the people want to stress he's jewish. he has in past certainly stuck his neck out to try to defend and protect his jewish beliefs and jewish groups and he has been wrestling deeply in recent days in what he should or should not be doing some people around him urged him to resign. others said he must absolutely stay these words he chose to use in talking to us were chosen very carefully and be very interesting to see what the president does next in response. >> alli efficient interview gave the market a lot to chew on and obviously moved stocks all around the world we appreciate your time. >> good contacts there too about the conversation we'll get the latest update on hurrican harvey
>> texas gulf coast is feeling the outer bands. they are pushing on shore. this is just a taste of what's to come in the upcoming days as we head through the rest of the afternoon we'll continue to watch the storm gain strength. it will upgrade as we head through the upcoming hours set to make landfall late this evening and really overnight, it will move towards corpus christi as we head through the overnight hours and early on saturday. this will coincide with high tides which will worsen the flooding impacts as we head through the evening tonight. now we want to show you what we're tracking here with this full screen image. it's a triple threat storm we have the rainfall 15 to 25 inches locally up to 35
inches you add that storm surge between six and 12 feet and we're looking at catastrophic flooding not just for the landfall of the storm but as we head through the weekend and into the start of next week because once this storm makes landfall it won't move much. it will churn over the texas gulf coast bringing that worm gulf moisture and sustaining the hurricane as we head through the next couple of days. it's a category 3. wind an incredibly large threat, sustained between 111 miles per hour, even higher than that. wind damage is a major concern as we head through the following days as well we'll continue to bring the latest on hurricane harvey but for now that's the latest update weapon everybody to watch these development and stay safe. uber set to hold a board meeting tomorrow that could result in a new ceo being announced as early as monday.
>> reporter: ahead of that meeting later today the plot thickens once again, uber investor sent a letter another one to the per board and filed legal documents saying he had to intervene in the benchmark lawsuit against the former ceo writing i have come to the conclusion that i have no choice but to seek the intervention in the unfortunate lawsuit that benchmark capital has brought against travis kalanick. he's leaking details violating its fiduciary duty and pushing its own candidate meg whitman for ceo. benchmark was try to re-introduce when it mapp. she's their preferred candidate. when it mapp stood by her earlier statement saying she won't be ceo like i said this is uber but they haven't changed their
stance that whitman is in the running. the two other remaining candidates are expected to be at this board meeting this company worth nearly $70 billion has been without a ceo for more than two months while the board may be getting closer to selecting a new one, it's unlikely at this point everyone will be happy with whoever it is. >> highly watched. thank you very much. when we come back gamestop shares fall as company's earns miss we'll talk to the ceo exclusively. dow is up by more than 100 points now half of that as we're seeing gas prices ease just a touch and ten arye yield awfully close to testing its lows for the year. back in a minute fidelity, where smarter investors will always be.
>> gamestop reporting earnings yesterday beating on revenue but falling slightly short on earnings the stock is down double digits today right now about 13%. for more we're joined by gamestop ceo paul raines paul, good morning >> hi, good morning. how are you? >> doing pretty well so, let's start off with the nintendo switch. this gets a lot of credit for the top line performance you say it's the best nintendo launch you've had in a long time what does that tell you about the consumer right now and what the consumer is likely to be looking for in the holiday season at the end of the year.
>> yeah. it's a great question, john. the strength of switch tells us there's a place for console gaming it's the hottest launch we've ever had interestingly there's lots of pieces that's exciting the attach ratio of 5-1 means consumers are buying software from us as well as digital and physical software. we're pleased that there's a tremendous demand for future software that's coming we also think that console gaming has always been a cycl cyclical business. we're not happy with our share price but people are missing with the strength we have. >> paul, tell me about the transition in your business, because i look at it on one hand you have this traditional business that people associate with you, selling console games and consoles, but you also got what you call collectibles which to me is toys for grown-ups which is doing well and this partnership with at&t where you're also looking forward to the iphone launch
what is it exactly that you're selling and what are you shifting towards >> so, we have been a diversification journey for two years. let's take the components of our business you have the physical video game business which is very strong. we had a 3% growth and that's driven primarily by harbor ware but we have decent used software growth our pre-own business was down and some analysts asked us about that and there's a lot we could discuss. our collectibles business was up 36% with very solid margins and our at&t business which is a 1500 store partnership is very strong we've struggled in the first half of this year to retrain our associates towards media sales but, remember there's an iphone 8 launch the iphone 8 potentially is a $250 billion event so we like our odds in that space and don't forget our
digital receipts last quarter were almost a quarter of a billion dollars. i think our shares are oversold. the company has a tremendous balance sheet. don't forget our dividend is yielding 6.5% to 7% at today's price. we think it's an opportunity a real value i've been on this show now, i don't know, ten years and seems we get challenged in cycles will we survive i'm very bullish on our prospects. >> asking a lot of people whether they will survive. a lot of them in retail. at least this quarter. tell me about the value of the iphone 8 to gamestop specifically because a lot of follow on sales from a phone sale are being captured by apple in the app store they are downloading it not side loading it by buying something off the shelf. how can you make it better in this cycle than in the last? >> sure. if you look at our tech brand segment which is largely our
at&t segment, first of all our growth there was high single digits but remember our grows margins are in the 70s we make a fair amount of money off these activation plans with at&t that's number one. we also have an attached rate of success rate so, yes, it's exciting to see people buy apps on the app store. by the lion's share of the value gets captured on the at&t store which we operate in addition we sell mobile game and got opportunities to promote those in our store so i think you'll see that the opportunity here is as great or greater for us than the app store with the iphone 8 launch >> as -- >> i was going to mention the stock price again. it's down 12% right now. down 40% over the last year. what are you hearing from your investors as you continue to tell the story of a company in transition do you think this is something
they are just -- they continue to have this threat about whether game cigarette moving into digital and moving into hot companies like amazon and google and facebook >> we're not happy about the stock price and doing everything question to move it. i would say the big questions we get is first of all, we did not have overall top line growth until this quarter so we've really -- we've really promoted our way into some new businesses so i think a big question is, do we have a place in the future of gaming and i think the answer to that is yes. if you look at the switch device and the success we had somebody asked me this morning, what about out switch. i would say say that's like what about without x-box or playstation. the business is cyclical also has been and always will be the fact our shares are down 40% is an oversold condition analysts, i think, understand
our business and are trying to grasp the new models we're in. as i say, i believe we're going to have a very strong third quarter and we are very hopeful about holidays i think, again, a case of oversold poorly understood model, but we've always delivered and we'll continue to deliver and very optimistic about that >> as investors try to model the collectibles business, is it driven more by hit games or hit movies and tv shows? as i look through some of the top sellers in that category on your site it seems to be across the board. what really causes that to grow for you? >> well it started out in gaming that's how we got in this category we were looking for products that wereed a jay scene to video games, and it's gotten into movie and i.t. we just added a senior executive from walmart
janet will come in as senior vp reporting to me and she's going pull together all of our properties we have a thinking.com website, gamestop.com website standalone stores and gamestop stores i think all of those media coming together and we will see, i think a lot of strength. the amount of money being spend on content in the world today is stunning if you get into the data and we believe that's going to drive a tremendous amount of collectibles because remember with collectibles that's an affinity. those are toys for adults. if you like a particular ip you want a statue of that ip on your desk that's where this is headed. we're very proud and bullish we're right in the middle of it. it's a fragmented landscape. >> thank you nerds by choice that's for sure. and when we return hurricane harvey expected to make landfall
in texas soon. we'll take you there live for the latest and what it might mean for cderu oil stay with us and her paw won't heal on its own. we're all working forward to something. synchrony financial can help your customers make it happen sooner. so she can plug into her dreams... and they'll have a new addition for their new addition. whatever you're working forward to, even if it's chasing squirrels, synchrony financial can help you get there.
hurricane harvey set to make landfall overnight in texas. the weather channel mike seidel is in victoria, texas and joins us with an update. mike >> reporter: good morning. we are actually on the coast about half an hour south of victoria this is the bay getting churned up by the early edges of harvey. winds gusting 25 to 30 miles per hour we're 30 miles inland from the coast. it's going to come right at us late tonight and early saturday morning. hurricane warnings are up. winds sustained at 110 miles per hour could intensify to a cat 3 winds up to 120. there's the radar. you can see the rotation you can see the outer rain bands. some of those bands, winds
gusting 60 to 70 miles per hour. the other story besides the surge and destructive impacts on the coast is inland. this thing called harvey will be catastrophic it will slow down as it comes in and sit around for days, maybe four or five, six days the rainfall totals will probably fix we could see amounts approaching three feet even if you're not on the coast we're talking san antonio, austin, houston always flood prone many areas will be inundated. this could be certainly deadly flash flooding and inland river flooding in the days to come unlike most hurricanes that come in and go out this has no steering flow. saturday and sun it will sit and rain itself out. part of the circulation could stay over waters winds could take a while to wind down count on numerous power outages. and we're concerned about tornadoes spinning up. this is going to be one for the record books we'll be watching it for you
from the coast here in texas >> just three feet of rain is hard to fathom stay safe. mike seidel. for more on harvey's impact on crude prices, we go live to galveston, texas jackie, what can you tell us >> reporter: hi. good to see you again. listen since the last time that i spoke to you i said it was a little bit misleading or deceiving. certainly people were meandering they are not much any more the wind has picked up the water levels have risen. the water next to me is rougher and rain is coming down harder when it comes to refineries in this area there are five total gulf coast you have 35 refineries, 9 million barrels a day. up to five here two have done precautionary shut downs three are monitoring but if this storm continues at this pace all of them will probably at some point have to shut operations.
meantime there were some people walking on the beach earlier i didn't know what they were doing. i went up to them and they told me they were packing sand bags people are preparing their homes to either hunker down here if they haven't left the region already. this woman told me the reason she was staying was financial. >> my father is handy cap and my parents are pretty old so financially we don't have the money to go ahead and take that ride out of town so we're going to go ahead and stick it out here. >> reporter: now that was an hour ago when she said she was going to stick it out. i'll tell the conditions in a short period of time have certainly changed here but there are a number of people who have made that decision and they are going stick it out. they've stock up they will see what happens back to you. jackie live in corpus christi, texas where hundreds of thousands are bracing for that
[pony neighing] what? hey gary. oh. what's with the dog-sized horse? i'm crazy stressed trying to figure out this complex trade so i brought in my comfort pony, warren, to help me deal. isn't that right warren? well, you could get support from thinkorswim's in-app chat. it lets you chat and share your screen directly with a live person right from the app, so you don't need a comfort pony. oh, so what about my motivational meerkat? in-app chat on thinkorswim. only at td ameritrade.
without pg&e's assistance, without their training our collaboration with pg&e is centered around public safety. we could not do our mission to keep our community safe. anytime we are responding to a structure fire, one of the first calls you make is for pg&e for gas and electric safety. it's my job to make sure that they have the training that they need to make the scene safe for themselves and for the public. it's hands-on training actually turning valves, turning systems off, looking at different wire systems all that training is crucial to keeping our community safe and our firefighters safe. together, we're building a better california. good morning once again. i'm sue herrera. here's your cnbc news update
a northern kentucky woman who was detained by immigration officials is back with her family she was taken into custody by i.c.e. while volunteering last week officials released her after confirming she was covered under daca policy. crews in kansas city, missouri used saws to dismantle an 8,000 pound confederate monument the statue was a target of vandalism. those pieces will be put into storage. and as racial tensions rise here in the u.s. a connection to a civil rights era icon may be coming back home last year rosa parks house was saved from demolition by an artist who moved to it berlin, germany from detroit now that artist is in talks with several museums to bring back the tiny home.
jew are seeing devil two water spouts which are tornadoes that form over water they are appeared off longboat key in florida obviously lots of weather news today that's the news update this hour back downtown to you, carl have a great weekend >> few, sue. europe will close basically on a flat note. >> european stocks trading basically in a tight range with the ecb president mario draghi due to address the fed's symposium at jackson hole in a couple of hours from now his u.s. counterpart janet yellen made no reference to monetary policy. as a result the euro spiked to a three year high against the dollar around 10:00 a.m. eastern to 118 against the greenback in corporate news. amazon due to close its acquisition of whole foods on monday and start slashing prices of several grocery products. in europe take a look at dutch
supermarket operator a patient of food lion and stop and shop tesco under pressure number one retailer in the uk. some economic news i want to talk about in france consumer confidence falling for a second consecutive month a tick lower in august to a reading of 103 confidence had jumped to 108 in june following victory of president macron since then it's dropped. households are losing confidence in their financial situation keep in mind macron's popularity has suffered a nose dive down 20 points from may according to a harris poll. french stock market pulling back from its may highs as well but with a month to go before elections in germany, chancellor angela merkel is on track to win a fourth term in office. the german dax up 12% so far
the national economic director gary cohn responding to calls for his job after events in charlottesville eamon javers is in washington looking at what cohn told the "financial times" in a piece that dropped earlier today >> reporter: this is the first time we've had an opportunity to hear from gary cohn since those events last week today he's kwautd in the "financial times" talking about his own job and his future inside the trump administration and the ross aspects for tax reform on his own gary cohn saying i have come under enormous pressure both to resign and to remain he also says the administration can and must do better on this issue. and he says i am reluctant to leave my post. on tax reform itself specifically gary cohn is say three big deductions will be protected. charitable, mortgage and retirement savings eenvisions imposing a one time
repatriation tax on offshore revenue from companies no indication of what that tax rate would be. he said that the hill will decide which corporate tax deductions will stay and which will go and they are no longer discussing the border adjustment tax. the administration now saying they are not going to put out their own tax reform plan here from the white house they are going to let capitol hill take the lead on that it will be house ways and means in the on-deck circle. back to you. >> be watching that for sure over the next month. cohn is one story. yellen is the other. fed chair speaking at the conference in jackson hole, wyoming. steve liesman is out in that area and joins us with two more special guests >> reporter: good morning. i'm here with two special guests i'm here with jacob frenkel, the
vice chairman -- excuse me chairman of jpmorgan international and holds the lifetime record of attending jackson hole 33 years in a row. and then catherine mann chief economist for the oecb jacob your reaction to janet yellen's speech. what did you take away from it >> it was a very thorough speech it provided us with good historical background of why are we are where we are. how dangerous the system was in. and how much the fed has done in order to strengthen the system from my perspective it was a speech that says, ladies and gentlemen, i remember very well from where we are, from where we came and we are determined not to allow this kind of thing to happen again she also reminded us that excess is part of the scenery and we should watch for them. but for me i also saw there implicit statement for monetary
policy because basically she said the system is now much stronger than what it was before >> she can go ahead -- >> therefore if we really want to raise interest rates on the way to moneyization it should not slow us down i think it's exactly the financial stability concerns that should encourage the fed to raise rates and to bring normalization. >> how strong is the movement backwards. you're on both side of the atlantic you follow the u.s you are based in europe. doesn't sound like it's happening. what might happen here in the u.s. could mean roll back of financial regulation >> in europe the progress on improving the financial stability is actually gone less quickly. there's still a lot of nonperforming loans on the balance sheets of banks. cleaning up of the mess and tidying up of the system that's been taking place in the united states, still has time to run in
europe >> we do have looks like mario draghi and janet yellen -- and the japanese central bank governor coming around the corner they will come on right about now. here we go there they are and they are taking their traditional walk a walk for the cameras essentially. we don't get any meaningful monetary policy indications from this but there are indeed the three top central bankers in the world. maybe you can help me out, kathryn. one has a zero inflation rate the other is 1.4 what is it in europe >> getting close to 2. >> mario draghi on the right is the one leading in terms of the effort to get to 2% inflation. how about if we did growth can you give me growth of the three countries? >> japan has come in very strong in this last quarter rebound for the united states. >> u.s. 6?
and then yellen at 112 and europe at negative .4 is that right? jacob, what's the trajectory of these three policies do you expect for japan, the u.s. and europe >> for the united states i think that for some time already it is high time to normalize and move ahead with raising rates the economy is much morrow bust. labor markets are very strong and the financial markets also strong when we come to europe, there the challenge is much more complex because the fact of the matter is and we're all talking about monetary policy where we want to encourage growth and productivity and the solution is not in the hands of the central banks. the solution is in the hands of government, those who do structural policies.
all the things that is recommended we should increase the flexibility of the economic system and encourage investments that's not what will come from the central bank >> the concern for the united states why people are saying we shown go forward is this lack of inflation and the fact that inflation has gone the wrong way. is that something that gives them pause, do you think >> no. the issue for the united states is if we think about what's happening with investment, 25 basis points is not going to do anything to change business' attitude whether they should take investment or not 25 basis points mutt -- might realign the markets. >> admiring your commentary. you should work for e! news after that red carpet. very good. that was a good walk i think it underscores how
global this kansas city fed symposium is sometimes it happens, sometimes it doesn't jacob as a global central banker we embark on the great experiment of getting out of super easy policy now we have this global synchronized global recovery how risky will that be relative to how risky it was that the central bankers got us into this in the first place >> well, in my book the main risk is not the normalization but the delayed normalization. we're talking about the need to encourage investment and growth. what do firms do today they are doing buy backs of their shares instead of investing in plant and equipment because the financial environment encourages them and encourages other people to direct their investments to the financial sector we are seeing a disconnect we are seeing chasing after yield with higher risks.
we're not encouraging investments in plant and equipment that generate jobs and this is where we need to go. the economy is suchenly robust to accommodate the decline and reduction and normalization of in rates, a hike is in place and if it means a change in the exchange rate which is an appropriate change, so be it >> i have to cut you off i want to get to catherine mann. one reason why i wanted you here one of the big stories at this conference is the turn around in global growth. it's changed the whole context it changes what jacob just said there's the ability to do or talk about what we're doing. where did it come from and how much do you expect it to accelerate from here >> it's broad based. not really a turn around just a strengthening in the u.s. in japan in europe, specifically in europe, commodity exporters when we think about the strength it really is broad based
accelerating from here -- now that's the big question. not so much accelerating, it is increasingly translating into real wage growth are we going see that? does it translate into business investment do we see that not yet. on both scores so we have to translate what we see as a broad base upturn into these more longer term sustainable conditions >> we have to leave it there jacob i'm sorry. >> should be higher than what we measure because the quality of product is not fully reflected in prices the way we should and wages, the effectiveness of income is much higher people can buy better quality products. >> yeah. >> we have to leave it there >> there's some issues >> we have breaking news thank you for helping me back to you.
as they were talking begot breaking news out of the white house involving sanctions against venezuela. let's get to michelle caruso-cabrera >> another round of sanctions against venezuela from an executive order from president trump. they prohibit new debt and equity issued by the government of venezuela or its oil company which state-owned. prohibits dealings in certain existing bonds which are owned by the venezuelan public sector. this would likely end up prohibiting deals like we saw with goldman sachs where the central bank of venezuela had a pile of bonds that had been given to them to increase liquidity or raise cash. they sold them at a cash goldman was one of the buyers. this would likely prohibit that happening in the future. and it also prohibits dividend payments to the government of venezuela. this could-in relation to citgo the refinery here in the united states as part of their
existence would have to pay dividends to their ownership company. so that may be a target at citgo. we'll explore this further another round of sanctions against venezuela. back to you. thank you very much. michelle caruso-cabrera back at hq dow is befrily off the lows. up 54 points be back in a minute.
exchange of the week we know jackson hole even though it isn't starting out with a bang markets have had some pretty good moves and you don't know what follows. so let's take a look first of all be very cognizant of the fact that janet yellen speech, everybody was that eves awaiting, supposed to be released at 10:00, 9:00 central, here we are at the cme let's look at the charts they tell us some interesting things first chart is gold. i'll tell you what, before 10:00 eastern, gold had all its volatility what really makes people scratch their heads, especially on this floor, there was a lot of people that were playing gold that kind of got off sides aed by b ed bbe they were preparing for 10:00 eastern to be the defining moment you'll see with the other markets, it was, all except for gold let's look at the dollar index wow, it got tagged let's think about that after we look at all the charts look at the euro, if the dollar got tagged, the euro is upside pretty big and when the dollar is weak for
the reasons that we're going to discuss in a second, it's usually pretty good for stocks and as you see on the s&p 500, it was so what are we talking about what is the notion, whether it was mark olson with me this morning, saying that janet yellen is going to try to give the central stage the big lights to mario draghi. if you listen to her speech, it was void of any monetary policy or clues as to balance sheet, which everybody, of course, was hoping for but it was about regulations so the gold market, which normally really is going to wipe things -- keep it hot, hot, hot, questionable, probably more on the hawkish side, didn't materialize. the dollar index, dovish move from top to bottom euro dollar move, could be a combination, not only the dollar going down, obviously, but mario draghi, think about what former fed governor olson said. this is all global and, of course, he's right, because whether our fed is doing quantitative easing or whatever their policy is, if other central banks overwhelm the
beach with their waves, that's what matters whether it's proactive, active, coming in or coming out, they all have to in some way coordinate, which is really scary. and, finally, my last point, we talk about oppositing attracting in life. well, opposites do attract in government government short-term, the fed's balance sheet makes it long-term. not exactly a good working relationship to get things done. jon fortt, back to you >> thank you, rick santelli. and the latest onhurricane rv, f haeyofthe coast of texas, when squawk al l"squawk alley" s stay with us and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be. and at $4.95, you can trade with a clear advantage.
whuuuuuat?rtgage offer from the bank today. you never just get one offer. go to lendingtree.com and shop multiple loan offers for free! free? yeah. could save thousands. you should probably buy me dinner. no. go to lendingtree.com for a new home loan or refinance. receive up to five free offers and choose the loan that's right for you. our average customer could lower their monthly bills by over three hundred dollars. go to lendingtree.com right now.
live-streat the airport.e sport binge dvr'd shows while painting your toes. on demand laughs during long bubble baths. tv on every screen is awesome. the xfinity stream app. all your tv at home. the most on demand your entire dvr. top networks. and live sports on the go. included with xfinity tv. xfinity, the future of awesome.
your insurance on time. tap one little bumper, and up go your rates. what good is having insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $782 on home and auto insurance. call for a free quote today. liberty stands with you™ liberty mutual insurance.
it is the biggest fight of the year, if not the decade. our jane wells is in las vegas for more on the numbers behind saturday's mcgregor/mayweather fight. hey, jane. >> reporter: hey, carl mgm is calling this their super bowl, significant to the third quarter, potentially bringing $150 million to the las vegas community. but look at the money going to floyd "money" mayweather and connor "the notorious" mcgregor. next, compare that to mayweather's last night against manny pacquiao floyd's getting a raise. but for connor mcgregor, his last ufc fight with nate diaz, he reportedly only made $3 million. he could make 30 times that tomorrow night, win or lose. no wonder he's putting on boxing gloves the trash talking as at times gotten very ugly, even racially tinged, and i've noticed tighter security here than before. >> in today's environment, yes, there's heightened security here, in anything of this scale that we do, and anywhere you would put this in the world, not
just las vegas >> this will be the most widely distributed combat sporting event ever from tv to app streaming and ahethe head of showtime sports never thought it would really happen. >> i don't think anybody thought this would happen, but floyd wouldn't let it go and the more he talked about it, the more the fans got engaged. and it turned into a real business opportunity >> he says pay per views are coming in from over 200 countries. he credits mcgregor's rapid fan base that's more than pacquiao and may weath mayweather, and mcgregor out today with a new beats by dre. there are sponsorships all over both fighter's twitter feed. but on saturday, will it be a real fight or a farce? >> i love this quote in the ap story, they quoted oddsmaker, you might want to have a heart monitor on me when the bell rings and connor starts throwing wild lefts it would be a big loss >> reporter: it would, but then
there could also be a rematch. >> i would not bet against floyd mayweather have you learned anything? he never loses it doesn't matter how late he's at his gentlemen's club, until 5:00 in the morning, every single morning with, the man do lose a fight >> i love it when you talk sports >> i love boxing this is exciting >> have a good weekend let's get to wapner and the half >> welcome to the "halftime report." scott is out today i am brian sullivan. let's get right now to meteorologist caitlin mcgrath. she has the very latest on hurricane harvey, as it moves towards the texas coat katelyn? >> residents of southeastern texas have only hours to get out of the path of hurricane harvey, which is continue to work its way towards the corpus christi yaer we'll give you a look at the current radar, because they have been feeling the impacts already all morning long we see some of those convective bands continuing to work their way onshore, but right now harvey is