. good morning, it is 11:00 p.m. at alibaba headquarters. squawk alley is live. ♪ >> welcome to squawk alley.

mild gains. carol swisher of real estate code joins us and john and kayla. good morning. we'll kick off with alibaba offerings to buy -- baba owns just under 20%. it's a youtube like service in china that claims to have 580 million monthly users. we sort of have to get used to numbers like that, even with names that we're not too familiar with. what should we know about this story? >> well, you know, i think what's interesting is the diversification of alibaba into other businesses. the continued diversification. they've been buying a bunch of different companies away from they are e-commerce background. you can kind of compare it to amazon getting into the entertainment business, megathings. they're doing it a little earlier than amazon did it. they have a diversified asset base. other people think it's a negative thing, that their commerce business is sloeshgs and, therefore, they have to find other businesses. you can look at it a number of ways. they've got to expand beyond

because all their competitors has investments in the area. badu has investments in the area. entertainment will be important, and they've got to be in it. >> they already know a little bit about the company, to say the least kara. they own just shy of 20% of the company. in china it seems like deals are either friendly or they don't happen at all. i'm wondering what you make of the language that they're having to propose and offer out there. it doesn't seem hostile necessarily, but i'm wondering how you're reading it. >> no. it's not hostile. i think they've -- the people that are running it said they'll continue to run it. it seems to be a very friendly acquisition. you know, a company like this has, you know, financial issues too, and i don't mean to say negative. they're spending an enormous amount of money getting into mobile. they're spending an enormous amount of money getting content. paying for all kinds of content, and they have different things on the service, but have you to pay for those rights. they probably -- you know, just like youtube was bought by google, you know, it was starting footbally, and it needed the stronger owner.

it's a very similar move to when google bought youtube, i think, or when amazon started to get into the entertainment business. >> is this going to reset the chess board way over here? >> google owns youtube. amazon is in the entertainment business. apple is in the entertainment business. i think what's interesting, and they've said this and i think it's largely not -- has come to pass as that you watch something, and you buy it. you know, you buy it on alibaba if you see something on a program. that's been a dream forever and doesn't seem to have come true very much. they're going to try to push these ideas of these synergies between commerce and consumption of entertainment. you know, who knows? who knows?

i just think everybody -- they have to be in this business. they're competitors in this business. they've got to diversify. this is a localized thing they're doing. youku doesn't have the presence here, and they have the presence here. they have to figure out ways beyond their original businesses. >> the add the wrinkle of the stock which is up 11% ever since barrons said it could be cut in half. >> seranos after the expose way in the "wall street journal" claims the company uses its key technology just one of its tests. investors, including draper fisher, larry ellison have brought the valuation of theranos up to $5 billion. here's coo elizabeth holmes with jim last night on "mad money". >> we're incredibly blessed to have partners who have worked with us, have actually seen our technology and, unfortunately,

in this case we offered to bring our technology to the journal offices to show them the technology they were questioning running firsthand, and they denied that request to show it to them, but cleveland clinic, walgreens, so many of the other partners that we've have had have seen our technology. they've worked with us. they've used our systems. they understand when you try to changes them things, people react to it. >> the reaction of holmes in the company, both from "the journal" today, yesterday, and even prior to that. what is your take on all of this? >> you know, there's been a lot of swirl around this company. "the journal" did a great job in bringing together a lot of the questions about the company and whether it was sort of just a marketing vehicle. i think there are two things here. one, the idea of disrupting the health care industry and cutting costs is a great one, and it's a great story. she's got a great story. she doesn't like needles. you know, i think a lot of the

media played into it. we haven't written a lot about her or written about her on our stages. it's an interesting concept of doing this and putting money into this area. at the same time it's not as ino vative as it seems initially. it might be someday, her technology might work better than the current machines. the fact of the matter is she's using old machines to do precisely what her competitors do. it's also interesting because, you know, she's -- she makes -- i was at a lunch where she was sort of attacking her competitors saying they're spreading vile rumors about her and her company. not her specifically, but the company and their abilities. she's sort of painted it at this lunch -- it was interesting like uber and the taxi industry affecting them. the question is is it just sort of a marketing scheme that the technology is not quite there yet and it's a great and important concept, or is it one of these companies that's just trying to get to the level of technoligical innovation that will create a real business eventually? >> cara, what is left to be

answered? i mean, it seems to me like if they're just using this ino vative test for one herpes test and the rest they are using the same equipment everyone else is use, i don't see what their competitive advantage is. their costs have to be higher if they're delivering these tests so much sooner. i imagine they're using really great equipment and probably employing more people, but that's not a business advantage, is it? >> well, you know, you could argue that uber did the similar thing. they didn't do that much different than taxis do, but they got -- they took this vc money, and they pushed it over the edge to get to a really important market. you know, uber is not making money. yet, most people would agree that it's disrupting and ino vating in the transportation area. the question is, you know, television wasn't making money until it was. i think the question here is this particular device they're using innovative? lots and lots of silicon valley based health companies, struggling with fda approval, all kinds of things. it's a different business than

just throwing out a photo app. the question is this piece of technology innovative, and they're just waiting to get more approvals, or is it just a bit of a marketing ploy to get to, you know -- i think this -- we've got to find out if this actual technology is innovative and once it is, will it be able to get approval from the correct government authorities? these are serious tests. this isn't like putting out just anything. these are people's lives that they're -- >> we have the ceo of pure storage, flash memory company, completely different space, on cnbc last week. we asked hem why he was going public, and he said transparency of a public company is important to our clients. i'm wondering because this company is private, there's less transparency, and that's why we're asking these questions. should there be a different level of disclosure when you are doing what theranos is trying to do? >> well, you know, they could argue that, you know, they've got these terrible rivals, and they do have these big pharma companies who are making.

you have blood tests all the time, and they are so expensive. it is an area ripe for innovati innovation. it's a big idea. are they being so attacked by these farm kwa companies that they have to be secret, or are they being secretive because the technology is just not there yet? you know, eventually these technologies, a lot of these technologies, whether it's theranos or anybody else, will get there so that health care undergoes a same innovation that the other parts of the economy does. is this way cart before the horse on this particular technology, and they've been very secretive and so they're paying the price tore that. >> speaking of valuations, cara, we have not gotten your take on square's s1. all the mention of the dual roles and starbucks, and the revenue in general. >> yeah, starbucks didn't work out quite as they planned. i think it's -- it sounded good, and another marketing thing that souned good. i think that the question is whether swrak can do both jobs. i mean, there was a lot going on this week.

they got a new chairman. they did layoffs, as we wrote about. he is running two companies. he did an ipo. i mean, one of the questions we asked in a story this morning we're publishing is does he get any sleep? i think that's going to be the question. when things get tough at either company or both at the same time can he handle both jobs? it's a legitimate question for investors to ask. >> the conventional wisdom, at least from some at this desk is eventually he does roll over into a full-time twitter job. is that how you see it? >> i don't know. i don't know what's in his head. he seems to be committed to doing both. he has told that to employees at both companies. you know, square is a company that probably -- you probably could find a number of ceos to take that job. you know, it's a painless company. there's a lot of great executives in that area. he is told they're committed to doing it. >> does -- coming on as executive chairman .

>> this is a guy looking for more work to do since he just stepped into alphabet and really has no job there. so, you know, it's a great name to bring in, and, again, well respected among advertisers. i don't think he is known as someone who is innovative in this particular space. he doesn't tweet that much. it's -- he is a very well experienced executive and probably helped swrak a lot. has helped larry page at google. you could see him helping him a lot more as they move forward. >> yeah. i know, john, you have called him the godfather or one of the architects of google's molgz. others say, cara, he left at a time where google was really putting their big bets together. >> yeah.

he did. >> you think people leak to not give credit to people that were there, but he was one of the key executives early on in google's history and deserves credit for helping build it. >> that's good insight. cara, great weekend. we'll see you soon. >> thanks a lot. >> cara swisher from recode. the market's major averages are hovering. dow and s&p are managing to be positive by a fraction of 1%. s&p earlier in the day was on track for its best monthly gain since october 2011. right now the nasdaq is up by just 12 points. a water of its percent. it's performing the best this morning. general electric shares in the green all morning. one of the major dow components moving the dow higher, it's up by a nearly 2%, and it is touching its highest level in about seven years.

a 38% decrease. adding question about ge's makeup, but investors liked what they saw. wynn shares, a quick check on that stock. it is down 4% today. in the last year, carl, down 61%. >> when we come back, daily fantasy sites like fan duel and -- it says it's time to be considered gambling. is this a turning point in e-commerce? jeff says it has tipped. with fidelity's new active trader pro investing platform,

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welcome back to "squawk alley." i'm mary thompson on the news alert. the company firing about 20 employees that were mostly new hires allegedly or for cheating on some tests. in an official statement the company said this contact was not just a clear violation of the rules, but completely inconsistent with the values we foster at the firm. goldman wouldn't decline -- declined comment tooz how they found out. keep in mind the number of

security tests that people have to take in the industry these days are on-line, so there is an expectation, i guess you could say, that goldman has some kind of monitoring of these people when they were taking the test on-line. once again, goldman firing 20 people for cheating on a test. these firings happened around the globe at a number of offices. back to you, carl. >> thank you very much, mary thompson. we are less than two weeks away from cnbc's republican debate. our john harwood sat down with mike huckabee for a chat on wall street. >> you were a pop list -- a republican populist before it was cool. >> whatever that is supposed to me. >> well, that's what i'm getting at. now you have jeb bush, marco rubio, ted cruz, even donald trump saying we need to help the people in the middle and working classes. >> eight years ago, nine years ago in the cnbc debate, in fact, in dearborn, michigan -- >> i was there. >> we were all asked how is the

economy doing, and most everybody is giving the standard republican boilerplate language. >> sky is the limit. >> wealth creates wealth. >> stock market seems to be doing pretty well. >> it's just doing great. >> i said, well, if you are working in the corner office, things are going swimmingly well. >> but for a lot of americans, it's not doing so well. the people who handle the bags and make the beds at our hotels and serve the food, many of them are having to work two jobs. >> i was, i mean, just pilleried for that. the "wall street journal" and others who thought that i was a total ignoramus when it came to how the economy was functioning. it turned out i was pretty darn ahead of my time because within the year the economy had fallen apart and people at the top were feeling what i was watching happen to the people at the bottom already. >> let me ask you about wall street and its relationship to the rest of the economy. >> look, i'm not sure that the repeal of glass sea gel was a brilliant idea. you erased the line between traditional banks. >> would you bring it back?

>> very likely. yeah. i'm not saying there shouldn't be some regulatory controls. i hate to use the word controls. some regulation. what you don't want is a referee that doesn't simply enforce the rules, but tries to totally control the flow of the game. >> now, ben bernanke said in an interview the other day that he regretted the fact that no individual wall street executives were prosecuted for their role in leading up to the financial crisis. do you agree with him? do you think somebody should have been prosecuted? >> absolutely should. these were the smartest people in the room. john, these were the people that were supposed to be the geniuses. these are all ivy leaguers. they knew darn well what they were doing shuffling paper around and getting paid ridiculous sums of money. >> why do you think the prosecutions never happened? >> money, politics. the contributors keep flowing to washington.

washington keeps doing the dance. i have said that washington is like a strip club. you got people tossing dollars, and people doing the dance. it was a casino, and i got in trouble for saying that very thing eight years ago. i like to say i was right. >> governor, thank you. >> thank you, john. enjoyed it. >> the question is whether there's any dividend for mike huckabee being right as he claims to be, but he is going to get a chance to make that case on the stage of the cnbc debate on october 28th in boulder, colorado. you and i will be there. just so our readers are clear, everybody is going to keep their clothes on in that debate. >> it's a guarantee i think we with can probably keep, john. thank you. john harwood in washington. we will see everybody, of course, on the 28th. john. >> don't spoil it ahead of time. people have to watch. nevada just got some bad news to

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>> the state of nevada coming down hard. more on that story from hq. good morning, eric. >> good morning, carl. that's right last night the nevada gaming control board ruled the daily fantasy sports sites like fanduel and draft kings are forms of gamble and can no longer operate in the state unless they apply for and receive a gaming license. the decision had been pushed by the state's powerful casino lobby who are adamant that it's a form of gambling. they've preetdly said their games are ones of skill and not chance so they shouldn't be considered gamble, but nevada didn't see it that way saying words like skill and chance are not how they look at things. for example, the lottery is a gamble, but has no skill involved. on-line poker is gambling too,

even though there's a lot of skill involved. the casinos have seen many big spenders move from traditional gaming to daily fantasy. data even shows a vast majority of big fantasy spenders were previously poker players. draft kings is a big advertiser on poker telecasts. meanwhile, the nfl has reached out to congress asking them not to hold hearings on the league's relationship with fantasy sports. tee spite many investigations and controversy in recent weeks, it's worth pointing out that the fantasy business has shown no sign of falling down. last weekend both sites had a record number of sign-ups. with so much money at stake, most insiders say the story has entered unpredictable territory. it will probably come down to which lobbying arm has more muscle. the casino spending on competition or the sports leagues who want the added revenues. carl. >> that is going to be a showdown to watch. for sure. thank you very much for that. while nevada's decision will not affect season long fantasy sports, it could be the first in a series of states calling fantasy sports betting on a game

of chance rather than skill. drew, welcome back. loo good to be with you guys. >> let me zero in on nevada. is this another domino starting to fall, or was this an easy state to lose because of the casino influence? >> i think it is a combination of both. there's no question that nevada is trying to protect their interests in casino gambling. this is pretty obvious. fantasy football, daily fantasy football, is cutting into the income, the wagering for casino gambling. sports betting, et cetera. they're trying to limit it as best they can, and they can control it within their state. >> you don't think it's a precursor to other states following suit? >> oh, yeah. i mean, i think other states are going to want to license them.

i would be surprised if other states get involved, but the reality is this industry is here to stay. fan duel, draft kings, et cetera. it's a the energy is making a lot of money with it as well. i don't see it going anywhere. if they have to, they'll just comply with these states. is it good for players? is it good for agents? >> yeah, i think it is. >> a, it generates a lot of money and a lot of interest. you know, it's basically fans going against each other. it's a judgment call morally whether you believe people should be spending money betting or figuring out fantasy football. that's not for me to say. is it good for the sport?

absolutely. this is great for the nfl. >> we talked with you, drew, a couple of weeks ago when the story about employee insider trading first came out about how much that would affect. >> now that we hear they're investigate -- nevada wants to label it gambling. do we see cracks in the facade of the reputation of this these companies even more so than we did then? >> well, i think so. i think it's important with this volume of business that daily fantasy football is doing that they are investigated, that they are iron clad that, there is integrity. that there is rules involved. that there is not insider trading or any inside information. i think it's great that the government, the fbi is getting

involved to give fans, customers, confidence that everything is on the up and up. this can only be a good thing. these companies have already banned their employees from playing. and other web sites or other competitions. i think that's smart. >> although things you're saying, ru, they said about on-line poker, and then in a day that business model literally went poof. why are you so confident that it couldn't happen again? >> i don't -- look. i don't expect this to go poof. there's a lot of money on board here. there's a lot of interested fantasy football. if they have to deal with the scrutiny of the government, then they will. i think this is something that can work and work legally and be good for everyone involved. >> yeah. well, a lot of people, i think, in the industry wish they had

gotten ahead of this ball, but we're going to find out. i'll see you next time, drew rosen haas, sports talk and daily fantasy. >> if it's such a game of skill, i just wonder why there isn't more money in on-line chess. there should be. >> good question. >> europe is about to close. simon is here to walk us through what happened in the trading day. >> wrurp is slightly higher today. that really has a lot to do with what happened yesterday here where you had that steady gain throughout the s&p which has lifted the likes of the health care and the energy stocks. a lot of that is follow-through from yesterday. for the week, european stocks in general are flat here in this country. it's a lot to do with the earnings today. the top gainer, the big french retailer announcing organic sales of 4.2%. that stock doing particularly well. as you can see, up 6%. on the down side you have those companies that are warning on four-year results notably next play and hugo boss. hugo boss is the real big mover,

and that's the luxury goods getting dragged lower. both net play and hugo boss are talking about china and to an extent what is happening in this country in the case of netflix or also i understand wra. just want to mention that re mr quantro today, is still in tellingtive territory. >> the banks are in play this week as people look towards debt for equity. what's happened, of course, during the course of the week is there has been the view that the fed is less like to raise interest rates here. the tlar has gone down. the euro has risen. guess what happens as the euro rises? the ecb comes outs lowers the euro by suggesting that maybe they'll expand the scope of qe. notably edward, the ecb's members of the leadership team, suggesting that they're clearly

missing their inflation taug target. ie, they might expand qe. at the same time they'll say that they are using all the military instruments that they have and maybe people need to look elsewhere. a leer nudge at the politicians to do more to boost the demand sides. we have an ecb meeting, of course, on thursday of next week. guys, back to you. >> all right.

>> good morning. i'm sue herrera. here is your cnbc news update at this hour. a federal appeals court ruling that google is not violating copyright laws by digitizing books for a massive on-line library. the authors guild and various authors said this violated their rights. crews cleaning up massive mudslides in southern california. heavy, heavy rains on thursday caused that flooding, which triggered the mud slitsdz. it completely blocked off major highways. a major utility opening up billy bean as one of the top excessive water users in the bay area. bean, who was the subject of the as car nominated film "money ball" uses about 6,000 gallons of water per day. he says he has tried to cut back, but has a large landscaped

yard. >> he files his certificate of candidacy paving the way for a senate run in next year's election. he asked for the trust and support of the filipino people. that's your cnbc news update this hour. kayla, given the fact that he is that popular in that country, i think he has a pretty good run at it. >> i think that's a pretty good bet. sue, our thanks, as always. meanwhile, shares of wal-mart have suffered this week. take a look at how they're doing this morning. the company lowered its earnings forecast and renewed it more than $1 billion commitment to e-commer e-commerce. wal-mart down more than 11% for the week, and our next guest saying the scales have officially tipped from traditional e-commerce to mobile for the future of the consumer shopper. jeff richards managing partner the ggb capital. it's great to have you again.

>> good morning. >> why do you think exactly now is the moment that the scales have tipped when we've been moving towards an e-commerce and a mobile commerce economy for years at this point? >> well, we've been moving in that direction for years. i think this is the first time folks outside of sell convalley are seeing large retailers like wal-mart raise the white flag. this has been going on for years, as you mentioned. we've seen billions of dollars poored into the multi-commerce category. we see alibaba in china, which drives 55% of its revenue from mobile on $100 billion billion in q2. this is the trend that's been happening for a while. i think for the first time you're seeing large players like wal-mart come out and publicly say, hey, this is impacting our business in a meaningful way.

we saw some of the messaging players, and he boldly took a step to spend $20 billion acquiring what's app. i thauft it was stark that instead of doing something interesting like that wal-mart chose to do a $20 billion buy-back. you don't see alibaba, fews book, google, amazon, you don't see companies like that doing buy backs. you see them committing massive amounts of dollars to strategic initiatives. you would think e-commerce and mobile commerce would be important enough that they would be committing that $20 million to rnd, ma &, other things to improve the outlook for their business. i thought that was an interesting comment to look at the outlook for the business. >> just to be fair, apple is doing a massive buy back, but i wonder, what do you say to wal-mart's argument that we've got these stores, we've got a renown renown renowned distribution thet work, and we're -- what more do they need to do in order to try to catch up with the likes of an amazon? >> i think when you are in a

business that's got a huge amount of physical infrastructure, you know, you look at the u.s. postal service trying to compete with fedex. that hasn't gone very well. its not easy. i'm not saying this is an easy decision for a company like wal-mart. you've got to be a lot more aggressive. i thought it was interesting that the four folks on stage at their analyst meeting were all middle-aged and older white males. those are not the kind of guys. they understand the mobile mom. they are international. they come from china, poland, southeast asia. they really understand the global audience of smartphone users and going to four billion in 2020. that's not an easy market to go after if are you using the same executives that have been working in your company for 25 years. i think we're talking about financial commitment. we're talking about cultural dna. they probably are going to end up having to go down a route where they acquire some of these silicon valley based companies that have that dna and that talent to go after these markets in the right way. >> again, to be fair, the executives at am zoon are also middle-aged white men.

i met with many of them. what could they get by asquiring someone? >> a lot of it is talent. silicon valley, it certainly probably, you know, not unknown to the rest of the universe in silicon valley there's an enormous talent, including engineer from around the world. wronk you see that same kind of focus within some of the legacy players. going after the top players in these companies, you saw jack dorsey just bring in you look at the upstart players like blue apron and door dash and foxed wholesale, even jet. these are really tal ened young foels that understand the mobile mom. they understand the next generation consumer. i'm not saying it's easy, but it's something they have to get going with, and i don't think a $20 billion share buy back is going to get them there. >> it shook the market this week. next time we'll have to get your thoughts on alibaba's

acquisition spree. i know you have a vested interest. next time we'll get there. jeff, we appreciate your time this morning, and have a great weekend. swref richards from gdb. >> when we come back, go go brings wifi to the skies, but where is the future of connected planes? the ceo of google's go go is going to weigh in. rick san telly, first, will have something coming up. what are you watching? >> besides the chicago cubs versus the mets, i'm going to talk about it because i contend there's not enough jokes in wages? what do i mean? come back after the break.

welcome back. we want to watch what happens with shares of on-line social media company twitter. they are moving, albeit modestly, about 1% to the up side in response to a bloomberg report that billionaire clippers, los angeles clippers owner steve balmer has taken a stake in the company. there has been a lot of skepticism with regard to this particular bit of news. they have received confirmation from steve balmer. you can see already coming off that the tweet came, again, from steve balmer early in today's morning about 1:30 or 1 15b in the afternoon eastern time. this came from an unverified

twitter account that's attributed to steve balmer. that was then retweeted by a verified account for steve balmer. the headlines here is that bloomberg is reporting that steve balmer has taken a stake in the company. we have reached out to both the clippers ask steve balmer. we are still waiting to hear an official word back from those guys right now. a healthy dose of skepticism has been tied. we'll get more. back over to you. >> a modern day lesson in social media, dom, as everyone tries to figure out if -- that the account was real. it was not verified. >> right. absolutely right. then it was -- it was retweeted by a verified account. was there hacking that took place? was there not? so many moving parts. very much a frontier in new media, carl. >> if he does, steve balmer does have a 4% stake, i believe it

will be bigger than jack dorsey's stake, which is just over 3%. still smaller than ed williams. that puts him in the top of individual shareholders if indeed he does. >> a lot of the people have been watching. edgar today. we'll keep our eye on twitter. let's go to the cme and rick santelli and get to the santelli exchange. >> hi, carl. you know, you just said something that made me think of another direction. we're going to go here. >> we're getting moderate he were day lessons in -- i think he is a great guy. i think his restaurants are terrific, and i spent many years of my youth working in a restaurant, so i think what he is doing is a good thing. that's not what i'm talking about here. nobody works harder than the people at a restaurant. have you ever worked in a kitchen that's 110 degrees?

i have. a lesson in transfer payments, okay? when we look at gdp, there's programs that help people. they end up contributing to g & p. it's a transfer. >> mr. mayor, i believe he used 21%, and most people between 15% and 25%. it's a transfer. it's exactly the same thing. what's the base common denominator of both those things? i don't mean to be funny here, but no free lunch, no free dinner, no free anything. that transfer payment comes from somewhere. the money comes from somewhere. okay? it is a good lesson. it's something to pay attention to. today we had jokes. i remember clearly the first month it was released. it was not december of 2000. it was january 2001, but that had to go back to the data in

2000. the first number out of the chute, okay, for job openings was 5,273,000. what are you going to see the airplane going straight up after takeoff. now, granted, this number was down 200,000, but we now have five numbers in a row that are over that. that's important. here's the problem. you ever try to move a big rock, you get a big two-by-four and you get leverage. the problem is we have, what, 93 million people that aren't looking and aren't being counted in unemployment. they're able-bodied, okay? what you also have is you have a group that has skills that really are doing pretty well. well, the problem is the demand for skill jobs just isn't going have enough leverage to move the wage component, but the bigger

question is why aren't people in this pool draining out in some fashion? i don't know the answer. some of the reasons aren't necessarily socially palatable. there is something going here that all central planners are ignoring, and the question is in their eyes are programs failing? they say no in a certain indicatedance because what they do is they do more of what sent working so they're not wrong. back to you, kayla. >> we pay so much attention to nonfarm payrolls, but perhaps we should take a closer look at joel. good reminder. what will the future of connected planes look like? simon hoff caught up with the ceo of go go in the n brooklyn. simon joins us here with the highlights. >> he is no stranger to criticism. the speed of which is in flight internet service sometimes operates. this country's biggest provider is promising a dramatic improvement for passengers this winter with the introduction of

its next generation of in flight connectivity. go go says its new technology will lift internet speeds on aircraft to 17 megabytes per second. that's more than 20 times faster than are you getting with its first generation system. go go is equipping 500 aircraft across seven airlines with a new hardware, which enables planes to connect directly with satellites for greater band width and stability. they try to -- ceo michael moore says even that pales in comparison to the third generation of industry technology which will connect planes entirely to the internet as the internet of all things from nose to tail. >> there is a lot of work to do to connect all planes because once you start down that path, you are going to want every single plane connected, all aircraft types. you'll want it everywhere on the globe, and you'll expect

phenomenal reliability. you'll have to interpace with all kinds of different things. it's not just going to be smartphones and tablets. all of a sudden it's going to be avionics in the cockpit or sensors on the engine. we're going to be busy for a really, really long time getting a smart platform sow can connect everything and have universal availability of our service. give me an idea of the mountain that that is to climb there, and whatsoever time period will get that over? >> it's starting today, and there's no doubt interests interest all around the globe by airlines and we're doing things like processing payments for flight attendants when you buy stuff real-time instead of storing it to process later. there's some very line of sight applications like nassau developed a thing called tasar and that's giving increased better routing information to pilots so they can save fuel and

time as they fly. we're in that part of of the s-curve, and then we have another decade as airlines figure out how to connect their aircraft and take full advantage of it. >> that's the ceo of go go, michael. the question becomes that scale, who is going to be the supplier? is it panasonic or ge or go go or does go go get more? that's the whole order of magnitude difference. >> there are so many codes trying to get into the space. >> in addition, yes. >> simon, thanks. >> up next tivo's new device is a tv binge watcher's dream, but can it send off the cord cutters? the ceo of twitter will explain up next.

>> there has been a scourge of options for people that want to drop their cable subscriptions with the dvr pioneering company tivo. its new device provides a solution for cord cutters and also still gives customers access to traditional tv options. joining us now here at first nine, tivo president and ceo tom rogers. tom, this new device, we talked about it on "squawk alley" a few days ago. a number of new features. how are you attacking the streaming challenge. you have amazon and apple back. the cable companies trying to come in with more options too. >> well, you said it. they're streaming boxes.

what tivo does with the new bolt is put all your traditional channels together from cnbc to the rest of the cable world to your video on demand in addition to the streaming services so you can get everything together. you can figure out where anything is really easily and binge on anything wherever it is. you have the ability to skip commercials. you have the ability to speed through things at 30% faster time. i got to say, i'm watching cnbc 30% faster. i'm getting that much more -- you sound perfect. it's pitch perfect audio. i get that much more cnbc time in, which is incredible. >> people watch the sunday shows three hours of sunday shows. get it down to about two hours. we claim an hour of time on your weekend. do you know what that's worth? you put in tivo bolt, and you get all the cable channels and you get netflix and amazon and hulu. it's a fully integrated experience. remember apple tv, you can't get rid of your cable box. apple tv does not have amazon.

you think about it as a streaming device. it doesn't even stream most of what people care about now. >> why is it to the method that you -- >> viewing behaviors changed. we find that people are abandoning advertiser supported television to go watch television on streaming services with no commercials. we figured, hey, give them control so you can have that experience of being able to get right to your program through a whole commercial pop by skipping it, not have what we call

premature play as your commercial because your fine motor skills aren't good enough. we'll hold people to linear tv. when he do, more ads will get through. the industry wins, and the consumer wins. we couldn't do that -- >> we talked as fast as we could. >> thanks so much for joining us. >> good to see you. >> we'll get the halftime report after this break. important than your health.

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