tv Street Signs CNBC May 28, 2014 2:00pm-3:01pm EDT
is up three and a third and win stream is up two and three quarters percent, so some nice winners there. >> and the losses have narrowed as you point out there. just about 9.5 points. that will do it for today's edition of "power lunch." thanks for joining us. >> have a great afternoon. "street signs" begins right now. welcome to the future. your top three stories of this hour show us that the future is now. first, google unveiling new self-driving cars and adding realtime translations on skype and third, apple reportedly new software that will let you control your entire house with
the touch of your iphone. >> we're diving into the financial outlook for each, but we want to hear from you. which of those do you think have the brightest financial future, right? not the one you like the most. the one with the most economic opportunity. let us know on twitter or hit us up directly and speaking of twitter and the feature, mandy, we are asking if that stock has a future. shares have lost nearly half their value this year and twitter ceo will join us live later in the show. >> let's take you on our first sign that the future is now. google unveiling a prototype of a driverless car. the founder says google plans to build a fleet of these self-driving machines. let's bring in senior editor, also cnbc contributor, herb greenberg. great to have you with us today. if this is going to become a real business, google really wants to get these out on the road, does google need to sell it to a real car company or at the least, team up with them? >> i think down the road for
sure. google for all its many skills is probably not a carmaker in the long-term, but they're investing in making this go from a research project to a real idea and the car companies aren't yet investing in it yet. probably down the road, yes, but the car companies will have google to thank. >> it's a big question. not because nobody wants it, but because insurance companies, who is responsible in a wreck? what if you get in the car and you're drunk. well, i wasn't driving the car, there's no steering wheel. do you think this will ever happen? >> look, by the way, they need fail safe mechanisms to put in place if this were to become commercial. what i've learned is after getting the iphone, i thought you'd never put the ipod with the phone because it would kill battery life, i never thought phones and cameras, really single cameras. i've learned you never know. and i've learned never to
discount what may happen as bizarre as it may seem. this is more bizarre than the iphone was, but you can't discount any of it. google's such a strong company and has done so many great things. this may find its way into something. >> even if google sticks its fingers out into a whole pile of different areas with these so-called moon shot projects, maybe it might overshoot or fail. at least they're out there innova innovating. >> i think nobody would criticize google for not thinking about the future. i think we see this with a lot of tech companies. people are asking here, intel and microsoft, hey, what's your next big thing. google is investing in a bunch of these. some will work, some won't, but certainly, they're aiming big. >> the problem though is that they have aimed big and they've done some very cool things that most of the revenue is still coming, i think it's 90 plus or
95% from ad words and just search engine optimization. are they going to make money on any of this other stuff? >> i think obviously, it's way too soon to know where they make money, but just take one crazy scenario. if you're not driving in your car, you could be surfing the web. if there's no steering wheel and you're surfing the web, just from that alone, by adding another hour to your web surfing day, google would make more money. >> i would rather get into a driverless car and be able to take the nap than get into a car with someone else who's doing that and feeling in real danger because we've got a lot of distracted drivers out there on the road right now. >> you're talking many years away for that, but i think what you haven't considered here, especially to brian's point about where they're getting the money right now, again, we have to look forward to licensing possibilities for technology, so that obviously has to be part of the story and you're just in the
infancy of this technology. >> google's going to have to do something on the revenue side with more of the cool products they come out with. i think we can all agree with with that. i fundamentally disagree. i'd be terrified to be in a driverless car. i'd be looking for the chicken break. >> control with your own car -- >> i will be on the record to say we will not see a driverless car on the roadways in our time. >> i would disagree. >> let's move on to microsoft. ceo announcing a new translating video chat service for skype at the code conference. take a listen to what he had to say. >> what happens is say you featured english. then you teach it mandarin, it learns mandarin. it becomes better at spanish.
frankly, none of us know exactly why. it's brain like in the sense of its capability. >> herb, i know you've got a son in hong kong. he's got friends, make comes back here, wants to communicate back to the old friends, new friends, whatever. it's neat. do you think it has real commercial application? >> yes, i think this is a great idea. a commercial, a lot of these things, look at voice recognition today, which this is a take off. has great capabilities, but it's not really a driver of a lot of margin at nuance and certainly microsoft and google, which have their own voice recognition. so, it has capabilities. the question is what will the capabilities be? >> here's the thing. if i was doing like matters of state, if i was trying to broker world peace, i wouldn't want to
use this just in case something got lost in translation, great for conversation, but maybe not at a higher level. >> i think if you're talking a super high valued transaction, but think about how many people around the world are trying to communicate for other things. people using skype to talk to relatives. what if they could speak to that cousin or grandparent if they're in this country that doesn't even speak the language. it's not about that perfect translation. it's about allowing two people who would never be able to talk to one another. >> it's just taking that block, we now can take say in google and place it into the translation program and basically you get some translation. and if you could add the verbal to it, i think it takes, look what it does for videos and for anything along those lines, but yes. >> herb, real quick, you foll
followed rosetta stone for some time now. does it put that kind of technology out of business? >> no, you still have to learn the language. there's a difference. if you want to learn the language or have somebody else speak it. >> i am sure it will take away some of their business, but there is no replacement for the human at the end of the day. >> except if it's driving a car. >> i want to take a nap in the back of the car. >> there's no backseat. two seater. >> okay. apple's automated home. according to the financial times, a tech giant has a new platform that would turn your iphone into a remote control calling the shots in our house. do you like the idea of this? is this something you would use? >> i think more and more, people are looking at phones not just for what they can do on the device, but what they can do in the world of smart objects that light up and it makes absolute sense for apple to be here t it's an area that google is
clearly investing in. they tried to do it on their own. that didn't really kick off, but now, they purchased net. clearly, apple wants this and this is a great apple business in the sense that apple targets high-end consumers. people that are willing to spend a lot. those are going to be the first people looking to automate their homes in this way. >> here's the thing, we discussed this in our morning. we should put a camera on our morning meeting, this already exists. you control your comcast, dvr through the iphone. how much more of an add do you think we're talking about? doesn't this in some ways already exist? >> it does, but it's very piecemeal. so if you're sonos, comcast, at&t, you have to build that out and build all of it from scratch. i think what apple can do is create a more unified approach.
when we get into things like lightbul lightbulbs, you don't want it to have its own app. you want one way of controlling all of the lightbulbs. >> and don't we assume, and google, i would suspect of doing the same thing. >> yeah, with the purchase of nest. >> google with nest, they want to go way beyond what they've done. >> got to leave it there, guys. thank you so much for joining us. please do. >> this is all good stuff, right, guys? driverless cars. blenders controlled by your mind, whatever it is, can somebody just make a phone battery that lasts longer than four hours? >> blackberry obviously has a much longer lasting battery, but doesn't that back lighting screen. >> we're going to end up in a world where everything is controlled by your phone and when the battery, why don't they make a battery that lasts longer than a couple of hours. somebody said a man once went on the moon. i still don't buy it, but some
people do. apple, microsoft and google all setting their sights on the future, but for twitter and its stock, is there a future? coming up, the ceo will join us live from the code conference. >> plus, a big red flag for a previously yellow flag stock and the most scathing, but also entertaining view we have ever, ever read.
the markets seem to be at the moment, the s&p hitting another high. catch this. the record breaking dow transports hitting 5 for 5. straight days and five straight weeks, but what is not up? gold. it's down again today to another 3.5 month low. i want to start with rick santelli. i guess it's good for borrowers. lowest level since july last year, but what is standing in the way of a move even lower? >> well, to part one of your question, it's only a good thing if you have the ability to borrow. that is such a great issue you brought up because i really think that central bankers don't get it. doesn't matter where interest rates are. if the people are trying to interact with them, a and b, they can go a lot lower. if you think 282 for a ten-year spanish note, doesn't make sense and you wanted the sell it, your
risk is that the central bank of europe will do something to poison your position. how do you protect that? you buy a treasury dwens it. problem solved. a lot of investors have figured that out. >> thank you, rick. bob, what about you? where's all the volatility gone? what's all this drop in volatility? stock, bonds, even gold. what's it going to trading revenues? >> it's making everybody crazy. if you're a long-term investor, you should be happy. but volatility is down across the board. the vix is lower. derivative vol yuls, the options are lower. they're volumes are down, too. why is this happening? there's a couple of possible explanations. first, regulators have cut back on bank trading. those desks that are getting dismantled, they were risk takers. investigations into trading activity, that dampens interest
in trading, but the most important thing, uncertainty. when you're not sure of where the economy is going, you tend to flatten your positions. that's the position. "wall street journal's" reporting we're fingly going to get names on information on the 28 people who controlled the partnership. 28 people. we know who the founders are, but we don't know much about anybody else. is sec is looking into this. they're interested in knowing more because the ipo application is in front of them. bottom line, we're going to get more information on them. mid july, mid august, probably go public. they haven't announced where they're going to go trading both of the exchanges were in china last week. nasdaq and nyse are in a battle for this ipo. back to you. >> i have a feeling that may be one of the most used in the next couple of months. there could be big changes for about 45 million men who have been prescribed cialis.
what's going on? >> hey, brian, so, announcing today an agreement to pursue regulatory approval of an over the counter version. right now, it's only available by prescription, but this would change that. you'd be able to go in your pharmacy and pick it up off the shelf. about 45 million men -- also say that more than half the men over the age of 40 also suffer. sales of that drug, $2.61 billion in 2013 surpassing viagra at one point, that lost a little bit of patent protection in europe last year. pfizer at different times, has been said to have looked at this over the counteroption for viagra and they wouldn't pursue this until the patent protection expires in 2017, but this is a tactic that a lot of big drug companies use, they try to take
it over the counter, basically bring back the sales to themselves and not from the generic prescription versions. >> hope it's going to be bought for the right reasons if bought over the counter. thank you very much. an early edition of street talk is on deck. >> and herb is coming back and he is going to tell you why he has just raised a big red flag on one very widely traded stock. the name and the news coming up. stick around. first you get hit by psoriasis. and now you get hit again. this time by joint pain. it's a double whammy. it could psoriatic arthritis a chronic inflammatory disease
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and now it's even better because they've introduced startup new york... with the state creating dozens of tax-free zones where businesses pay no taxes for ten years. become the next business to discover the new new york. [ male announcer ] see if your business qualifies. daily rundown of stock news and recommendations and we've got pfizer being reinstated with morgan stanley stock. it's up slightly. >> morgan stanley's target for pfizer is $35. about 15% upside from here and slightly higher than the average wall street target of 34.17. it call comes after pfizer
dropped their massive bid. pfizer stock down about 5% this month. >> next up, another big name company. this is conocophillips getting an upgrade. >> this is sandisk. there is conocophillips. up to 79.77, but gugenheim says it's worth a lot more. about ten bucks of upside in cop. they met with management last week and gained some positives on what we've heard. >> target increased over 22% at ubs. >> trading up one-half of one percent, but ubs' target, $110. raising estimates as well, reflecting higher average selling prices, also, higher gross margins. their rating obviously is a buy. if you had a $110 target, you better have it as a buy rating.
>> not unheard of. stock number four and to the focus -- >> big southeastern bank based in georgia. target, 29.50. about seven bucks of upside. about 30%. >> and last but not least, a really under the radar name, williams sonoma. >> upping their rating to overweight from neutral. the target, up to $85 from 71. the stock at 68. so, 85, about a 20% upside jump. put that in your pot and smoke it. let's bring back herb greenberg. are you there? >> i am here. >> okay, we're going to talk about a name you're raising a red flag on, but i've got to quickly ask you about the story that is burning up cnbc.com. earlier today at an investment conference, deutsche bank conference, larry fincke said
they will never ever launch a leveraged etfe these are his words, powerful words, that leveraged etfs could quote, blow up the whole industry one day. it's already our most read or close to it. what do you make of larry fink's comments? i know you, too, herb, have been critical of leveraged etfs in the past. >> i don't think this is the first time he's said it. if they blow up the industry, it takes him down with it and he's the largest provider at black rock of etfs, so i think that warning can't go out. trying to put out in leverage junk bond fund. oh, what could go wrong with that, well, if something goes wrong with that and other leveraged etfs, he ends up with
a serious problem. >> in ucla in october with bill gross, to that effect. when you say and we say lever e leveraged etfs, i'm not going ask dwrou speak about larry fink. are you thinking about the four times double bull, say wee going to give you 300% of an inverse move in something? >> you're using derivatives to get there. it's one of those complicated things that you know at some point, is going to blow up. there have been plenty of examples of having issues and not quite cracking, depending on what you're looking. some don't track the commodities, but in the end, the supercharge in turbo charge your investments. maybe for the most sophisticated investors who understand the risk and who could get out every day, but for somebody holdinging them to the long-term, there's going to be an issue here. >> and you were jumping up and
down this morning. waving it wildly when you saw this headline. solar city and grupon offering first of its kind deal on solar power. really? >> i have already yellow flaggeded solar city in january. and now, i have to tell you something, i go to red flag with this because this is now telling you that their business isn't what it appears. some big targets out there because they've given very big guidance. the only time you go to couponing and in this case, gruponing, it's not from a standpoint of strength. you never do that. >> but i'm glad they do that. i use amazon local and grupons all the time. restaurants and all kinds of things. >> on what? >> mainly restaurants. there's always something in the local neighborhood that's good. why not? thanks a lot, herb.
we hope you will be watching shark tank on cnbc prime because this month, we're diving into the tank to find out each shot's best investment. we asked mark cuban and his answer was simple. >> of all the investments, i've closed 30 plus deals on shark tank. simple sugar is out of pittsburgh, pennsylvania. >> i started it in 2005, when i was 11 years old. >> came in and really made an impression. >> i'm seeking $100,000 in exchange for 10% equity in my company. in 2010, i was a sophomore in high school. my sales were $13,000. >> she was everything a perfect pitch in shark tank should be. >> the cost to make the scrub?
>> $3.61. i cut it at least in half by doubling the sales. >> there's too much competition with scrubs out there. i'm out. >> i'm out. >> we think it's worth a million dollars. >> yes. >> mark, has she convinced you? >> she's darn good. i'm willing to invest $100,000 for 33% of the company. >> mark, i would love to accept your offer. >> she was one of the best pitchers we've had here at any age. >> 18. if that's our future, we are in good hands. >> really good. >> after shark tank, we got over 10,000 orders in the first two days after our episode aired. we reached $600,000 in four days. we ended out 2013 with $2.1 million in sales. >> got an e-mail, she said, mark, got a question. i've got over a million dollars in cash in the bank. what should i do? i've got over a million dollars
. >> hopefully closer to 4 million. >> the best company isn't about the largest growth in sales. not even about the most profits. it's about having that foundation that you can platform from to go you know, to who knows how big. >> come take a swim with us this month to see the rest of the shots. right here on cnbc. >> meantime, do not move because up next, we are going west. back to the code conference for our exclusive interview with twitter ceo. that is coming up when we return. [ girl ] my mom, she makes underwater fans that are powered by the moon. ♪ she can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. ♪ my mom works at ge. ♪
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as to why they have shortchanged these customers. but that would require wifi. switch to comcast business internet and get two wifi networks included. comcast business built for business. all day, we've been bringing you headlines from some of the biggest plays in tech. twitter, of course, one of those big names, but shares have lost nearly half of their value so far this year. so, let's go to the curb now where we have an exclusive interview with the ceo of said company. >> thanks so much and thanks so much for joining us here today. now, dick, i have to start off talking -- >> sea by the sea. >> talking about mary makers presentation this morning on big
internet trends. pointed out that facebook's revenue is twice that of twitters. how do we fix that? >> she also pointed out ours is accelerating quite rapidly. i was delighted with the growth she showed there. >> but what about catching up? when will you catch up to facebook? >> we don't have a specific timeline for when it has to cross. it's growing quite well. it's specifically up because engagement on the platform is up, so that's all great for us. >> mandy just mentioned your stock is down nearly 50%. up today on analyst upgrade, but for the year, the number is pretty disappointing in terms of stock performance. how will you turn that around? >> i can't focus or spend my time on the short-term fluctuations in the stock market. i try to focus on the long-term view of building a lasting
business and that includes making sure we're investing into growth as balanced against operating efficiency and operating leverage in service to increasing margins over time. i think if we do that in the long-term, the value of the company will be reflected and the financial results will be delivered. >> a new report says twitter's growth could tap out to about 20 million users. >> i don't spend a lot of time thinking about third party reports. we see the data from our own service. on our earnings call in q1, we've certain acceleration in the u.s. and growth across the rest of the globe, so i'm happy with the work the team is doing in service to growth and we like our plan there. >> it seems like you're coming up against facebook. just yesterday, you announceded a big advertising deal worth about $240 million, but just last week, facebook announced another deal with a similar ad giant. are you in a land grab here and how can you win? >> the omni con deal was our
third. we've had a number of them other time. the interesting thing was this was the first one that included a significant commitment to our mobile ad exchange, our global one billion users. so, i think that's something we're really excited about. i've talked about that a great deal and bringing the exchange and owned and operated twitter inventory, over a quarter of a billion people together and delivering those is something that's super important. >> you are increasingly coming up against facebook though. facebook wants to be more a part o the public conversation and a second screen for television. how are you going to compete and win against facebook? >> when we delivered our tv strategy, it was based on the fact that two are -- like the
nba and nfl, there has been study after study that they have reenforced twitter and tv. a recent study showed there are three things that drive tv ra ratings. one -- two, last year's ratings for the show and three, twitter and that's it. >> there's been a lot of speculation that twitter is working on and should launch a new way for people to access twitter without having to log in and sign up, to be more like youtube than facebook. what do you have in the works? >> we only have a semblance of the logged out -- without log ing in and that's a use case that's in effect for a great deal of users. as you think about the expanded audience of twitter beyond the logged in experience, there's absolutely an opportunity for us to more broadly grow that experience and the audience, that great audience across the
landscape that you tweet. on our earnings call, just in the 48 hours after the oscars, over 3.3 billion tweets about the oscars not even on twitter. as you think about that more broad audience, that's a big opportunity. >> i have to ask you quickly about music. your reported attempts to buy sound cloud fell through. >> the beauty of twitter is that it's a great place to experience the music of the moment. the music that people are listening to and talking about right now. billboard in which in addition to their weekly charts, they will deliver a twitter chart of this is the music people are listening to and talking about right now. that creates this great circle with the industry so that the artists themselves can engage in conversation with their fans on twitter in service to increasing the number of plays they get and radio stations that reflect the chaurts. >> no acquisition news?
unfortunately, we're out of time, but thanks so much for joining us. guys, back over to you. >> thank you very much. i want to say something again, he said in that interview, i'm not concerned about short-term stock price moves. i have to focus on excuse. i get that. it's a ceo line. my view is that the ceo price is a report card of performance. i think a ceo needs to be focused op the stock price. if not, don't be public. >> i agree. it's certainly something that they say a lot, even on cnbc. stock's down 50%, what are you doing about it? well, we don't -- but you're absolutely right. they need to take care of the shareholder, otherwise, why would people invest in them. >> very well said. >> now, time for r instant twitter analysis. we're going to get herb's
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welcome back. you just heard julia boorstin's interview with twitter ceo. what did he admit that you would have liked to have hear. >> i would have liked to hear him talk about this one issue, why they're not going after the passive user who maybe a passive user, but could use it as this is your newspaper. your news feed. you can create the list of make it just easy for you to get in and see the news that you want to see. >> he did talk about trying to spend a long doubt experience, but you talk about something different? >> i'm talking about just actually going after the person who may never be an engaged user. they need people engaged with tweets. i think if they go after and market to people who don't still understand twitter because they think technology, those people
ultimately saw them will become engaged users, you could build the streams that get promoted tweets that they weren't expected to get perhaps and i think they need to do that. one other thing i noticed, the issue of -- comes up, especially as it relates to facebook. i know they're both social media company, but to hold this company to the standard i think is actually not necessarily correct. there are two different types of social media attracting different kinds of people to some extent. it's like linkedin is a very different type of social media, so i don't know that you can ask them to be the same. what's really unfortunate here, that this is a public company. it's under the microscope of everything it does. >> this is not a company that's building factories. you're going out and you have to attract employees, you want to
also pay back your early investors. i understand why companies in technology go public, but i disagree with all due respect to mr. costelo, that he's not paying attention to performance. when your stock is down 48% from its high in less than a year, you have to pay attention to that. >> brian, you can't control the stock and i have to ask you, why disagree with you and this is when you can get into the amazon view of the world, 19 years of not paying attention. or you can get into the starbucks view. i'll never forget in harold schultz's first book, when he stopped paying attention to the stock price and started paying attention to the business, it all bloomed. this is not starbucks, this is not a coffee company. if he has to worry about the stock every day, he'd be going nuts, so, i think again -- >> it's not every day, herb. just saying you have to -- i
would -- i'm getting yell eed a in my ear that i have to go. let's continue this argument soon. >> i'll be in the studio next week. >> all right. now, let's talk numbers. take a look at twitter. i'm going as fast as i can, upgraded the stock today. you think there's any sentiment change real one on the horizon? >> no, i think the big concern is -- and we can look back to your argument on the stock price. i say the ceo doesn't need to look at the stock price for the first 18 months. it's been out, absolutely. goes down 40%, you want to look at it. there's a lot of volatility in those first 18 months, so i'll give them credit on that side. on the user growth and that's why we don't own it and want to
add it right now. >> so, jc, what about the charts? do they back up what erin says, not looking to own it, not looking to buy it. >> rocket up after its ipo hit 70, ever since that, it's been trading down. the big technical development happened on may 6th. traded on the lows of the day, but 135 million shares traded versus the ipo price of 117 million. so there's 15% more volume on that day. we call that a selling climax. if you wanted to sell, you sold that day. now, the people who still own it now, it's going to take them a long time to share. so they're in for the long run. we see those upside -- you saw the upgrades today. the stock is trading on good vol up. i really think this is a trading opportunity, especially if you
look for any good news. >> so, maybe a trade at least. thank you very much to both of you. check out the online edition. >> another big guest coming up from the code conference in our next hour. the ceo of uber. all coming up in the next hour. >> and you're about to hear the words to possible the best car review you'll ever read. it even says hitchhiking is an option. and we'll take a look at some cars that would never get that kind of lousy review. >> we're going to go from the mitsubishi mirage to the california trk. mine was earned in korea in 1953.
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the performance review. that corporate trial by fire when every slacker gets his due. and yet, there's someone around the office who hasn't had a performance review in a while. someone whose poor performance is slowing down the entire organization. i'm looking at you phone company dsl. check your speed. see how fast your internet can be. switch now and add voice and tv for $34.90. comcast business built for business. let's take a look at wheat features. they are done today and have been sliding rather dramatically to three-month lows. increasing rain hurting cross prospects. the fifth largest wheat exporter in the world and wheat is still higher year to date, up 5%.
>> this may be one of the most scathing and most honest car reviews we've ever read. the review is entitled "it's cheap, but is it overpriced?" it's about the mitsubishi mirage. i read it last night and let's bring in the car reviewer pearly huffman. kudos to you, my friend, because when you say greyhound bus ticket or hitch-hiking is a viable alternative to this car we pay attention. have you heard from the good people at mitt beeshy? >> they have not talked to me. >> do you think the reason that we don't see more negative reviews like this is because the car reviewer is getting scared about not getting another car to review? >> i've never been scared. you know, this car has been panned not just by me. got a "d" from bevins.com and panned it in "car & driver" so
it's not like this is a daring thing to do. it's been universally pretty much derided. >> my thought when reading your piece was why -- mitsubishi is a good company in many ways, obviously a huge corporation. >> yeah. >> why produce a car like this? why even give it to you when it's 74 horsepower. >> 74 horsepower. they build cars around the world, built in thailand and built for second and third world countries where cheap transportation and very, very small cars are more popular than here now. >> for the united states, because i loved your line, what did you say, something to the effect of the only consolation at least peril is your constant driving champion. >> yeah. well, you know, i think the reason is because it was cheap to bring over here. i can't speak for mitsubishi but it seems to me as if it was just an easy car to add to their lineup at the bottom at a price point that made sense.
the advertising started at less than $13,000. cheap is cheap, and a lot of people want to buy cheap. >> it was extremely well written. >> thank you. >> and if you do get a call from mitsubishi, let us know what they say. thank you. >> looking forward to the next review, by the way. looking forward to it very much. from that car to these cars, the ceo of ferrari is about to join us. ♪ here's a good one seattle... what did geico say to the mariner? we could save you a boatload! ♪ foghorn sounds loudly ♪ what's seattle's favorite noise?
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now is this for a segue. ferrari set to unveil its new model called california-t and here to tell us more about it is ferrari interim ceo. it's a pleasure to have you on show the, following the mitsubishi mirage segment, tell us about the california-t, what does it cost, and how can we get one for free? >> well, that's the most difficult question to answer probably. first of all, thanks for inviting me. today is a very important day for us here in the united states. not only because of the california-t but because we're mixing together several important events. first of all i like the line that this is the 60th anniversary of the presence of ferrari in the united states which is one of our biggest markets, so together with these important events we come with
other important events which is the official presentation in the united states of the california-t which is our new baby and is now entering the market. we're going to first have a special event here in miami. we shall follow that later on by other events in new york and los angeles. >> we were talking earlier on in the show, enrico, but google's driverless car and more and more it seems like cars, basically big computers on wheels. do what degree are you using technology this this particular model to make it a better driving experience? >> well, you know, first of all, i think it's important to say that the california-t is replacing the car in california which has been probably one of the most successful model in our product range. we've sold 10,000 cars all over the world, and it's extremely important for us because out of the 10,000 cars we've delivered, more than 7,000, so more than 70% have been delivered to new to ferrari client, which means
even here in the united states there was a big number of potential customers that were willing to buy ferrari, but maybe they were a little bit scared about the performance, about the appearance of the car. and california was good at attracting this customer. why? because it was a perfect blend of performances which is the dna of ferrari. of course, you need to have the pleasure to drive, but at the same time a car that was delivering an experience to the less extreme. a car that you can drive every day so that was the history success, and it was difficult or important to define how to keep this element of success, but at the same time identify few innovation, and this is something that's specific for ferrari. we never introduced a new mod model just with the small face. there has to be some important technological innovation in the case and in this case the most important thing is the new
engine. we come back with the newly developed engine turbo. >> very quickly. do you think -- coming from the ferrari, do you think we'll ever see truly massed produced driverless cars on the highway? >> well, listen, i think that if you read about all the forecasts, this is probably one of the potential developments. now, i'm working for ferrari. for us it's everything connected to the driving experience is important, so i cannot even think about jumping into a ferrari without having the pleasure to drive, without having the pleasure to hear the sound of the engine which is part of the experience, so certainly the future is going there, but at the same time there should be and there will be a niche off even an important segment of people that will enjoy driving it and hopefully enjoy driving a ferrari. >> hopefully and we can all dream. thank you very much. appreciate it. >> thank you. >> quick programming note.
pimco founder and cio bill gross will be here. the old pimco guy, paul mcauley, always interestingch don't miss it right here at 2:00 p.m. eastern time right here on estines. >> thanks very much for joining us on the show today. "closing bell" is coming up next. do not change the channel. see you same time tomorrow. welcome to "closing bell." i'm kelly evans here at the new york stock exchange. >> i'm bill griffith. we are watching the markets kind of hovering at this point. we are close to all-time highs. of course, for the s&p, any gain for the s&p would be a new closing high. the dow needs roughly 40 points right now to the upside to achieve a closing high, but we're down nine right now. >> yeah. i mean, again, this would be the third day in a row that we close at a record high for the s&p. we'll see what happens. also a big day on "closing bell." a couple of excluve