tv Squawk Alley CNBC January 6, 2015 11:00am-12:01pm EST
expecting. you have until one minute before the jobs report lease. with that we'll say good luck and hand it to you carl for "squawk alley." >> thanks so much. good morning it is 8:00 a.m. at the consumer electrons show in las vegas nevada, 11:00 a.m. here on wall street and "squawk alley" is live. welcome. joining us this morning is kevin o'leary. jon fortt live at the consumer electronic show in las vegas. kayla tausche as always.
markets getting volatility here. up some 75 points or so. stocks down now 45 or so. with a day the stocks had hoped to bounce back after yesterday, the worst day in three months. below back below 50 a barrel. the low for the session, 48.47. relief is not in sight in crude. >> and moves in the dollar as well and the bond market, the ten year now below 2%. when we talked to art cashin last month and asked if we'd retest the lows he said yes. and a lot of people thought he was wrong on that. when you have volatility and flight to safety, that is where you see it. >> bill gross weighing in and a
time for deflation. central banks lose their fire power. kevin, give me pack rmacro thou for how we should think about 2015. >> right there the dichotomy. the big gross camp saying ten year down and indication for deflation and basically no benefit from the degrees in value of energy and oil. and i don't take that side. if i had to start the economy and put money to work today, wouldn't i want it do it at oil at a hundred or at 35. i actually think oil won't see a bottom. i will continue and it will eventually freak everybody out when it breaks into the 30s. i've lived through the cycle many times in my life. you can't guess the bottom. let's assume oil goes to 35. would i want that if i owned the
rest of the s&p. and i've been sayings this. even if i have to own all of it, i'd rather have oil at $35. i'm not in that camp that says we're going to zero on the assets. i'm on optimist and i'm gok krb -- >> when you see data like what we saw this morning and pretty much every data point is negative for december compared to november here in the u.s. it does seem that output at least here in the u.s. is responding to the market o shocks abroad. do you not believe that some of that volatility and show down in growth will effect the u.s. and the broader north american markets. >> we haven't even had a chance for two things to happen. so i'm going to give you on the negative all of the analysts that cover both big and mid cap oils have not even changed their
calls on whether they are long or short. they haven't even done the work yet. that is coming and it will be very negative for 8% of the s&p. and then let the low cost of gasoline percolate through the rest of the economy t low cost of energy on transportation which is going take at least six months. let's have this conversation on earnings and our economy in eight months, six months from now. and in my view and the way i'm betting it is i'm put money to work. iesm going long companies that can increase dividends using the fulcrum of the lower energy to do it. which is 9% of the local economy. i'm happy for the other 150 million working in our economy that want lower energy prices. i'm bullish. sorry. >> we like that kevin. nice thought process. want to get breaking news on boeing really quick.
phil lebow has details this morning. >> we knew it was a big year last year for boeing? how big? a record year in in terms of orders and delivers. deliveries, last year set a new record. 723 commercial airplanes delivered and that was roughly in line with the expectation on wall street. in terms of orders, 1,432 orders. also a record for boeing. record deliveries and record orders. >> nonetheless we're seeing boeing shares move down with the broader markets. we'll continue to watch that and get more from you a lirlt later on. next up a potential deal between aol and verizon. there is doubts cast upon a potential deal buts the provocative nonetheless julia boorstin live in las vegas to tell us more about what we need
to know. >> reporter: that's right. people are definitely talking here about some news or potential news that isn't -- doesn't have anything do with the gadgets here in the convention center in las vegas. it is about the potential deal between verizon and aol. both companies wouldn't comment and our david faber says verizon's ceo spoke last night where he quickly dismissed the idea that anything significant would be going on with aol. but those reports did send ool shares jumping this morning. and less likely than a full acquisition, verizon could be partnering up with advertising technology as verizon looks to expand mobile video ads. another story is sony which unveiled some super thin giant television sets as well as a 700 new walkman. he finally broke silence on the
massive hack attack on sony over the film "the interview". >> sony pictures entertainment, former employees and certainly current employees they were unfortunately the victim of one of the most vicious and malicious cyberattacks we've done certainly in recent history. >> another company making waves is dish. they announced its new sling tv a $20 a month over the top service to stream live cable tv. it is just an app that works on internet connected devices and has no equipment. the big question is whether this over the top service will appeal to the 10 million broad band house olds or whether it will get cable subscribers reason to cut the cord. a hot topic here. >> it is not just tech companies at ces.
there is a whole range of the companies. phil talking about the auto industry. we also herd a you got a inside look at what twitter might be up to. >> ces is also a huge destination for advertisers and twitter is having meetings with over 150 -- of course coming at a crucial time of year when advertisers are planning their annual ad spend. this year twitter is making a big push for its video ads. people who saw videos on twitter demonstrated 28% higher purchase intent after viewing those videos than if they saw those video ads an different platform. also using very dramatic high-tech visualization os of ththe hupzs of million who is s tweets to show just how broad twitter's reach is.
of course twitter's big push and pitch to advertisers come at a time when there are a lot of questions about management on people. and plenty of competition for ad dollars so video and broader reach are the two points twitter is really stressing. >> great stuff. jon fortt, lot of coverage of ces so far. what dwho do you make so far. >> the reason i like cces is it is kind of this primordial soup of electronics. most of the stuff will not see the light of day. a lot is junk following trends but you can also see the blind spots in the industry. and things that people will actually see in their living rooms before long. a lot of wearables also. garmin has a wearable. everybody has something they are positioning against the apple watch and android wear. a lot of the home automation.
a lot of in car stuff that is actually interesting. but some of the best stuff has been like an electronic scooter that allows you to go 60 miles on a couple of the batteries. probably going to cost like $3,000 plus a monthly subscription to swap out the batteries. that's interesting. also a head set that to me is more interesting than google glass. you can see through the image it displays. about 720 p image lots of possibilities you can do to view fun video. probably costs around a thousand bucks. you are not going to see the next iphone or ipad here. but you can see what the industry is pushing towards for better and for worst. >> we know you are a bit of a gadget guru yourself kevin. anything out there you think is valuable from a stock
standpoint? >> no. i don't really see anything that exciting to be honest with you. i look at it this way. wearables are the bust so far. connecting your cell phone with your home a bust so far. everything else has been kind of -- you know, just hasn't had any traction. i'm interested in a driverless car. mercedes menz new option looks tremendous but i think the regulation is going to be difficult the next five years. my guess is what i'm hoping for within the inner city and hold the speed down to 35 miles an hour, when the software glitches it won't be killing that many people. frankly i'm not very excited anything i'm seeing at ces. it's nothing major. television thinner. who cares. >> if you believe mark fields out of ford today, five years is
how long we'll have to wait for driverless cars. kevin thanks again. we'll see you soon. >> take care. >> koechb leery. speaking of the ces, the ceo of qualcomm later on this hour. and the ceo of the roku. and walt mossberg is here with his look at the best of ces so far. where does this scooter rank on the list? "squawk alley" will be right back. gas, bloating? yeah. one phillips' colon health probiotic cap each day helps defend against these digestive issues with three strains of good bacteria. approved! live the regular life. phillips'.
hitting the slopes in pennsylvania. making use of the cold war. from innovo any pen to an iphone case that plugs directly into a wall outlet. who better the highlight the best of the best than our own gadget guru jon fortt joined by walt mossberg. who by the way also got a chance to check out the go go ro
electric smart scooter. what did you make of this thing. >> it's really handsome. i think the interesting thing people have to bear in mind is that it's really in some ways an energy business, as its own founder says. because there really it is a subscription to these batteries that just swap in and out. and you get a range of about 60 miles at 60 miles an hour. and then you go to these stations and swap the batteries. and it is a subscription. so the scooter itself a few,0 thousand dollars. and then i don't know what the subscription will cost. but they have to build a whole infrastructure for these batteries and i think that is the important thing to keep in mind. this is not just another scooter. >> you picked three products walt. that any pen is one of them,
right? >> right. so this is the lenovo yoga tablet. about 300 bucks later this month. and they have this any pen technology. specially hardened glass, jon. and you can use anything. here is a kitchen fork. it does not harm the glass and i don't know if you can see that there. but it says fork. you can use a pencil. you can use a ballpoint pen. >> can you see yourself using this instead of a keyboard to jot something down quickly. >> i can see it. particularly if i didn't have to worry about losing a the stylis or storing one. this is the kind of incremental stuff that you see here at ces,
rather than the big trends which are announced elsewhere. you see a lot of kind of incremental stuff on existing products. in the same vain here is an i d ipad. lots of people, including jon fortt use keyboards with ipads but finding something that isn't too heavy has been a problem. so the people who did the plastic keyboard for the iphone. >> famously crushed by blackberry lawsuits. >> but now back in with a new verng version. they claim is the thinnest keyboard in the world. on the back there is a the kick stand and it's magnetic. so it comes off and goes back on. and the keys actually travel. so the idea is to take an ipad and let you use it like the
laptop. >> like the microsoft surface. >> so just like they got sued by blackberry, i don't know. i'm wondering. a kick stand and magnetically attached keyboard. >> you seem to like this. >> i haven't had enough time trying it but i do like it just because it is so thin and easy. and i think this kick stand is big deal. >> and there's been charging cases for the iphone for a long time. this is another one. you can see the bulge there. but this one has something i think is cool which is the prongs are built into it. so you can plug it right into the wall. >> no more forgetting the cable. >> and you can push this off and plug it into the wall and keep using your phone, charge the battery and have it.
this is to me, putting aside tvs, cl they really do inintroduce introduce new trends. a lot of ces is building on things announced elsewhere. >> and that's why ces can be annoying for i. i like it. you are the gadget guy. i take a step back and say okay what are we missing? what do we need? and i love looking hear to see there is a whole lot of junk but here's what's not working. isn't it good for that. >> it is fun and some of the small companies in particular are fun. i think there is a mistake a lot of people have made their minds is that this sets the tech ai agenda for the year and it really doesn't. >> for that we have to look for the code conference. >> that is the place. end of may. sign up. >> we'll certainly be will there. >> walt you call at a lot of
this technology incremental. have you seen anything you think is right for more wide spread adoption right away? >> right away -- well i mean these things will be adapted right away but they are ink ment incrementab incrementab incremental. buildingon on something else already announced in events outside of the ces. you can say people are going flood the market buying curved tvs. but the -- that is really going to happen but right away no. >> are you impressed with curved tvs by the way is this. >> no. i think 4 k is great. i think if you are going to buy
another tv, you should buy a 4 k one. but personally i don't get the curved thing. that was here last year too and i didn't get it. >> maybe if you put the tvp in your back pocket and you sit on it -- no. >> yes. jon. that's very realistic. >> back to you guys. >> jon fortt, walt mossberg. guys don't do too much damage. we'll come back later. dow is almost down triple dijts but so is aol. >> just more information on these stories that came out yesterday from block bloomberg between aol and verizon. echoing many of those comments in a speech that he -- he said i
think aol and other companies are the potential for us to do partnering on a commercial basis. but to say we're having significant acquisition discussions is not accurate. again that is the ceo of verizon talking about verizon's efforts overall todo continue to investigate various video opportunities. video is the key opportunity on wireless at this point. my understanding having spoken to a number of people is they are talking to any number of companies. the key words are partnership. likely to result in some sort of the joint venture. perhaps aol being one of many amongst those. we have the sound bite. >> i think aol along with lots of other media companies are potential for us to do
partnering with commercial basis or whatever. but to say that we're having significant acquisition discussions is really not accurate. >> shares had been up as much as 6% in the early going. >> with content king and aol being one of the leaders you can see how a partnership would make sense. although it's nothing necessarily near term that is happening. >> i think that's fair. if you want to talk to a lot of people -- >> appreciate you bringing us up to speed. >> when we come back. as we said earlier, dish network making waves with its new streaming tv service. what does the future of tv online actually look like. we'll ask the ceo of roku.
check out shares of priceline.com. one moment. stock that's lost this week. down about 1 and a half percent. another one of these companies that trades a little more volatilely than the rest of the market. >> let's bring in simon hobbs and the european close. >> a losses yesterday. not a great recovery. a lot of europe is shut too for epipha epiphany. and the data is really poor today. composite pmi down from initial estimate to 51.4.
that services and manufacturing combined. and amidst that further record low frrs the german bund. .45. we were almost up 2% just a year ago. this is a phenomenal move during the course of the last 12 months. just to repeat that is a live figure. .45 is now the new record low on the yield for the german 10 years. the european central bank is discussing doing qe presumably on january 22nd. only one of the three options is fed like where the fed buys in the all 19 states sovereign debt. the other two are much smaller options only buying triple a rated sav ed sovereign debt. and the other option is the 19
central banks would buy their own central debt and take on the risk locally. so localized qe. the most important takeaway from this is they haven't sorted themselves out. they don't know how they are going to do qe on the 22nd of january. so at the best you might get a promise for sovereign qe. but this could be weeks or months away from them actually pulling the trigger if that is the real time conversation they are having behind closed doors. >> by the way look at oil today. close to session lows. about a dime away from $47. when we come back. will online streaming service roku end up going public this year it's been talked about and today we're going to the source. anthony wood joins us in a moment. dow down 112
>> is 2015 the year you go public. >> you said it. we can't talk about future financing plans just as matter o of policy. >> all right. so let's move on. new partners roku tv. actually televisions you are putting into the market. how important are actual sets to your business? >> people know about roku super. it's very popular in the this u.s. but there are really two ways we're growing. one is streaming players. is other is so called smart it
haves or tvs with the internet streaming bilgt built in. up until now they are complicated. and we think there is a huge opportunity to bring the roku to tvs directly and be the operating system and provide a modern tv experience with something easy to use. lots of content where streaming is front and center. that's what we're doing with roku tv. >> another area you are pushing ahead is 4 k. the prices are coming down it'sem become more affordable. you have put together a reference design for 4 k tvs. usually it takes a few months for that to come out. do you think late 2015/16 is the
so i time we start to see 4 k content come to the market. >> one of the most exciting things is that there is a next generation 4 k content need forward 4 k but unlike in the past where formats were generally on dvds and that is not going happen. it's going to be streaming. so yes we announced our 4 k reference design. it is important to remember that roku tvs, we don't build and sell them ourselves. at ces we are announcing our design and they start product sizing that and some time over the next year they will start to come to market. the time is up to the tv oem zb zblz. >> i was asking streaming 4 k. how hard is that?
it's four times the size. probably slows you down about 2 x to get the highest quality stream. do you think people's broad band is fast enough to handle it? >> i'm sure it is. broad band is getting faster and faster. i have 50 mps. that is enough to stream four k on lots of tvs in my house. and there is a the new compression standard that comes along with 4 k tvs that does a better job of compressing the data. >> how do you think the streaming stick versus box versus streaming tv goes? >> we're seeing sales of all three categories are strong and growing and they are all good for us. t stick category is the lower
priced category. the box is more full featured. it's got head phoned jacks or faster speed. a little better quality. and fur buying a new tv, just getting it integrated in is a great solution. there are lots of tvs out there that are not great for streaming. so the market for boxes is big and it's going to be big for a while. >> when you see hbo go and offer and espn doing the same. what do you think that does for streaming overall for the next year? >> what we're seeing is the continued transition of tvs distribution to streaming. we founded the company based on the belief that all tv is going to be streamed and all tvs are going to need a platform or operating system and that is roku's goal is to be the platform in every tv.
that's started to accelerate with the transition with like you said, sling tv. hbo becoming available without having a pay tv subscription. a la carte. as the the big change. so there are more and more content and rapidly becoming all content is available. >> is it good for you because it raises the availability and knowledge about streaming overall or could visit negative sides because there are lots of different ways to get the streaming content besides roku and the deals that you have made. >> it's excellent for us. our business is based on the transition of the industry to distributing content through streaming. we're america's most popular streaming player. we stream more hours every week than chrome cast, apple tv and fire tv combined. we compete very well. the roku gets excellent reviews. 4 and a half out of the five stars on retailer websites we
have what we think is the best. and when the world goes to streaming it's great for us. >> anthony wood, thanks for joining us. ceo of roku. >> thanks jon fortt. markets getting interesting here. we're down about 200 points off highs. all three indices are session lows. s&p about 4 points from the 1 handle. that would be 1999. oil near session lows as well. ism was a miss. not a lot is working today. >> oil is down 8 and a half percent since friday's settle. quite slide. quite a lot of momentum going into the markets. 8 and a half percent. >> and the european close has not done anything to ameliorate the selling. we'll get a closer look at the internet of everything.
the ceo of the qualcomm joins us later this hour. but first rick santelli. what are you watching? >> we're going to be watching three areas. diving the possibility of the what mario draghi may present on the 22nd. we're going to talk a little yield curve on the u.s. and what it may mean for the fed in 2015. and last but not least you may be surprise ed to hear what the manufacture on the ism survey said.
we are live at ces with two big interviews. 50 cent and former yahoo ceo ross levinson. that is a ceo exclusive. and the stephanie links and pete najarian unveil their playbooks. and the hedge fund gain with nearly 30%. carl see you about 15. >> in case you missed it. winter is coming to i max. game of thrones coming. for one week only in january 23rd. marks the first time a television show will be shown in
that format. game of thrones averaged 19 million viewers last season. talking rose bowl numbers. >> that is like 1980s television numbers. 19 million. so you can't get game of thrones on amazon like hbo east other shows. >> bring on season five. can't happen soon enough. >> we have our own game of tloens. it is called central banking at this time. when it comes to ism non manufacturing it was a bit of a miss but that isn't what i found the most interesting news. respondents get to answer questions and every now and again they are really fascinating. these are just three of the seven. one, still struggling with supply of solutions for patient care. that is about the affordable act. another affordable care act comment. should be able to boost the economy upward.
obamacare and wages are still the biggest enemies to the profitability. and then last. auto industry sales mere record historic highs. and that -- another series of questions and answers. it's been posed there are several possible combinations qe could take in europe. simon has been doing good work on that the today. i guess my issue is we now see maybe the what, maybe the how, and maybe even the when. keep in mind the next meeting is january 22nd. the market is way ahead of answering these questions already. but maybe the only thing we really should be interested is in is the why. whether it's bill gross's comments or everybody in the
world talking about wages not moving up. pricing power. i get all that. but in the end the real question is, are anything the central banks doing going really alter that? or is all of that just a symptom of the malaise in the economy. that is where my vote goes. and then the final notion, it is about the yield curve. we've talked many times about how in anticipation of the what the fed is going to go in 2015 e. we've seen short rates move up flattening the curve. however as all the malaise of what's going on in europe and draghi most like disappointing starts to go in the back half of 2015, this flattening curve might find it unravels bringing a whole new crop of sellers to the long end. >> do not get between rick santelli and a dry erase board. when we come back, live in las
>> tough thesis for energy investing in 2015. thanks dom. the connected world taking center stage at ces. qualcomm is in the center of it all. jon fortt is by with a special guest. >> the ceo of qualcomm. i think this is your first ces at ceo. >> that is correct. >> and qualcomm has risen to become one of the the most important companies at ces during the mobile era. first the elephant in the room.
which is china. talks of a settlement of the antitrust probe into the qualcomm. do you feel closer to getting that resolved. >> it is a difficult topic to talk about for us. we really don't have anything significant to report. we are very very committed though to resolving this it. it is a high priority for the team and for me. and i think we'll get back to being a strong partner in china. big trend even today if you look at the strength e of the chinese electronics manufacture. it is a good trend four business and we look forward to getting back to that mode. >> i think xiaomi recently announced qualcomm is going to be in their new phones but there is talk they could bump you out of higher end models at the same time.
do you feel you are shaping up competition wise versus lower priced chip competitors in the market. >> they have within a real area of strength on the business side. >> just getting paid is the difficult. >> the product business can the licensing business is there. the product business is doing quite well really driving the trend of lte into the chinese market. >> let's talk about broad phones. you have certainly wearables out there trying to take center stage. medical. which do you think is going to have the biggest impact soonest now that we've got a few months since the last time we had you on. >> i don't think anyone knows quite frankly. >> not even you. >> ostrategy is to take it easy for people to leverage the power of mobile. so many people are trying to figure how to get their device
connected and our job is to make it easy for them do that. that is why you see announcements from us from a very broad range of the customers. people trying to go into the medical industry, to people trying to connect lightbulb, to connected water heats. just a proliferation of products and our job is to make it easy for that to happen. >> seems like the gadgets have gotten way ahead of the software in terms of managing all this stuff. someone has to show they have really figured out that piece for it all the accelerate. maybe apple with home kit. maybe google. are you comfortable we're close? >> it's still early actually. i think you are going to see different applications might use a dij eco system. and the real holy grail is figuring how to get a device
that the work in multiple eco systems. we've done all join which essentially is a secure and cross-platform way to connect the different systems together and there are a number of other people working on things like that and will be on important component of the market. >> investors think that intel has some momentum where they didn't before. are you anymore concerned about them than a couple years when they were foundering in mobile and investors think so too. >> we tend to think focus on our own products. and we drive technology and that is what we pay attention to doing. there is a tremendous amount of competition in the markets that we grew up in. >> turmoil continuing for the traditional leaders in the china market as we see iphone gaining share. >> we never talk about individual products of course. particularly not products that aren't ours. but there is always a mix of
share and a juggling of prurkts as people innovate very quickly and see what the local market needs and we've seen that over the history of our business. >> qualcomm ceo here. >> great work all day today jon. jon fortt in las vegas covering ces. in the meantime markets down 152. we were up about three at the highs. s&p interesting at 2002. we have not mentioned had macro data. ism was a disappointment but the spoke points out december was the first in his of the services report that all ten components declined month on month. >> currently at the worst two day performance since october and much is driven by the fall in oil prices. e and p like one o okay. spectra energy leading the s&p lower.