tv Squawk Alley CNBC September 20, 2019 11:00am-12:00pm EDT
good friday morning. welcome to "squawk alley." carl quintanilla with jon fortt at post nine of the new york stock exchange morgan has the morning off we're going to start this morning with apple, with the company's latest slate of iphones hitting shelves this morning. josh lipton is at the apple store in san francisco where i think they're just opening, right, josh? >> reporter: that's correct, carl we're here at one of apple's stores in san francisco. doors are just opening i will step out of the way so you can check it out three new iphones officially hitting shelves today, carl. faster processor, longer lasting battery, better camera, the toughest glass in a smart phone, not just an iphone, but smart phone, period, according to the company. the big question for our audience, traders, investors, business people, did apple do enough to keep the iphone
franchise stable over the next few quarters i checked in with mike olson he bets apple has done just that he is looking for iphone revenue to be basically flat to slightly down over the next fiscal year as we wait for the expected 5g iphone in 2020 of course, it is not just the new iphone, the new watch hits shelves too, starting at $399. the big feature everybody is talking about, always on display. you can check the time always without having to tilt the wrist. they took the series 3 down to $199 jim cramer thinks that's going to explode the watch in his words, meaning attract more fans we wearables are a bright spot to date they sold an estimated 80 million watches. guys, back to you. >> josh, thanks. meantime, apple ceo tim cook is out in california made an appearance at the fifth avenue store in new york city.
ra hell solomon is there >> reporter: normally we would see tim cook on the west coast for the first day of sales this morning we saw him here, arrived at 7:30, the fifth avenue store, major location for the company. arrived at 7:30 to about 300 customers, adoring fans, applauding, cheering, giving him high fives, taking selfies with him. once the doors open at 8:00, high fives continued, cheers continued, a big celebration here the first person that got here in line, 1:00 yesterday afternoon. he tells me that he wanted to get the 11 promax. some tell me they slept here, others stayed awake all night. a lot of tired folks this morning. gone perhaps are days when people waited for days to get their hands on the first iphones. we know now iphone, apple has
streamlined this process you can preorder the phone, have it shipped, arrive same day it is available in stores, preorder and physically pick it up from a store. apple says the lines and crowds out here should not be indicative of demand for new merchandise. that said, speaking of time slots, guys, this is the only 24 hour apple location. it is open 365 days a year but it has been closed since january, 2017 for major renovations, not quite three years. they have since doubled the size of the sales floor you can now go to the genius bar at any hour of the day, buy new merchandise any hour of the day. this is an important location for them when the store opened in 2006, steve jobs opened the door, celebrated, welcomed the first folks inside the store now since then, since that opening in 2006 that same pr rep
tells me they've seen 57 million visitors in the store. more annually than the statue of liberty, than the empire state building, and madison square garden tim cook here again on the east coast, celebrating, welcoming the first customers in the store. usually we see him on the west coast. a big day for the company. back to you. >> i'll take it. apple's iphone franchise has been under pressure in recent quarters, posting slowing sales. bring in wolf research managing director steve mal on vich happy friday good to see you. >> good to see you >> we can watch the lines we want, but we need to know about preorder trends in general some colleagues argue this one is good at least on the 11 what do you think? >> i think it is a good iteration. you're not going to see a huge amount of innovation, the camera is important particularly to millennials. we're looking for a slight
decline in apple iphone revenue the next 12 months that means growth comes from services and wearables i think they've done a nice job. don't hear too much bickering about the product this year, the pricing, they were more aggressive on pricing, starting to regain share in china again i think they're in relatively good shape, set up for a stronger cycle with 5g a year from now >> a bit of a circus in midtown as pictures show reuters has images from beijing, shanghai locations where they argue we haven't seen people cue up like prior cycles how much does that matter? >> i am not sure how much not lining up matters, it may indicate that some ultra die hard fans, but there are other ways to buy it i'm not sure china is a big question for apple, for this model. there have been not only trade
pressures but the iphone may be less attractive over time in the chinese market that's otherwise based on android that does well there. and a lot of cheaper android phones, huawei and samsung do well there it is a question to me personally, i like the new models i think it was very smart to go with focusing mostly in the improvements of the camera, and they're really good improvements, it is an amazing camera i bought every iphone comfortable the last several years, i think maybe all of them, and i will get this one too, i need that better camera >> steve, you have a $220 price target, your friend does on apple. apple trading above that today i might argue this cycle china is the only market that really matters because they're rolling out 5g pretty early.
a lot of chinese manufacturers have 5g phones apple does not have a 5g iphone. how much do you think that matters? >> well, first of all, carl, the valuation, the stock's now at market multiple which is fair. they've shown they can continue services, growth, maybe that will improve, it is near fair value. regarding china and 5g, i think it is overplayed at this point 5g even next year won't give that much incremental capability in the phone networks are faster. the real benefit is beyond phones, internet and things. nevertheless, it is a big deal next year from a marketing standpoint carriers will push it in a big way. in china, maybe apple is behind relative to huawei earlier in the year, apple is losing share in china, reduced prices, have new phones out. they have been regaining share in china huawei has problems generally speaking outside china at this point. i feel like apple's market share
around the world and perhaps in china as well is in fairly good shape. >> we're used to dissecting phone cycles bit by bit, but increasingly we're having conversations about howary going to act as a programmer of content and as a purchaser of content. you must have some hot takes on whether or not they're truly ready to surpass hollywood >> i mean, we will see the quality of the shows on this i thought it was smart to have the lower price intro for the services for the video service the videogame service looks interesting. they're on a good plan with services i don't think it is a great measure of innovation of the company to spend money on tv shows when everyone else is doing that maybe there's not a lot of apple-y stuff to do. i think it is a little sad to me they're not working on some great new hardware, but it has been awhile since we have seen it instead we get these shows
but everyone loves watching tv so it is fine. >> steve, i'm a little worried about ios 13, reported by many reviewers to be a bit buggy. i would argue apple needs a strong year for ios 13, more than it needs a strong year for the iphone because they need people to stay loyal and stay up to date to make all the accessories and features and services work the way they're supposed to. how closely are you watching the uptake on that this week and next week as the update to 13 is supposed to be coming out. >> it is important that ios 13 not be buggy or be fixed quickly. i am confident they'll be able to do that they've talked about the percentage of the base that moved up to the new operating system and contrasted that with android which has been forked over years, people are all over the place on android if they have a major faux pas,
that could be a problem. two problems are growth of the installed base and retention rates, it is still 85, 90% for retention. i don't think that changes as long as that doesn't change, gives them opportunity to monetize otherwise such as streaming video that you just referred to. >> finally, we raised this point before in the old days, selling prices were higher, bulls argued that's great per share. now as average prices top off, that's great for unit volume do you feel strongly either way? >> i mean, i think that the volume is kind of set now. people decide whether to get these phones not based on new features, it is based on install base and when you're ready features will always be incremental, and prices, they're changing the prices slightly from year to year, but they've
settled on this new cadence, two more expensive ones and cheaper one. it is a good mix cheaper one is cheaper this year there were years of adjustment and they're hitting a right strategy on that >> we'll see how orders come in, how reception is over the weekend. steve, good to see you farhad who writes about the world, but like to think of him as a tech columnist from "new york times." coming up, grub hub, uber, and other big take big take aways from delivering alpha. top opportunities in tech next. and first, shares of roku, some investors turning it off on the back of a downgrade at pivotal. on pace for the worst week and ckn montceerdemb ba ia me at fidelity, we believe your money
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from recession fears to yes, i am -- ipos, leslie picker joins us. >> throughout delivering alpha, a big theme was whether the public markets and ipo process specifically is working the way it should. >> if a direct listing is providing the same kind of fair information, fair access to the market as your more traditional, underwritten ipo, who are we to
judge whether one is better than the other, as long as the investors have fair access to information. >> we think that the ipo happens in the private market now, and the public ipo is really just a second bite of the apple a little later you've got this new liquidity there, and they are filling the coffers with capital, they don't need capital in the public ipo. >> the exception of the ipo market, there's a quasi bubble, i think the equity market is okay >> cooperman said other than the ipo market, doesn't see much euphoria out there apollo co-founder had similar comments, saying aside from faang, five of the top tech stocks, the market he believes is fairly valued, said there are ample opportunities for buyouts. they addressed the same idea, scott cooper, whether temperatures are waiting too
long to go public. cooper said companies are now used to going public a decade after they were founded. he believes that trend will continue also making tech headlines yesterday, jim chanos revealing a change in grub hub >> seems like softbank took this stay private longer trend to a different level. i wonder if that changes if softbank narrative changes, what we're seeing with wework and uber, et cetera. will companies have to go public sooner again >> you bring up a good point we're starting to see the beginning of having conversations about silicon valley, ex-softbank. this is a trend ex-softbank. i wonder if this is a similar trend, companies staying private for longer, including softbank or ex-softbank is an important question to be asking, and whether or not that changes. they're currently raising a second vision fund perhaps we will see that trend
continue over time, despite what we might see with wework and the likes. >> and cooperman-made a splash with threats from warren and the stock market did that supersede capital markets or was politics first? >> politics was more front and center than recent years only because you have so many candidates that have come out with policies or plans that are relevant to the financial markets and relevant to these heavy hitters on stage as you mentioned, cooperman talked about elizabeth warren and the potential her election could send the stock market lower. i spoke with josh harris what it means for the private equity business warren has come out with a plan, stop wall street looting act, which essentially means private equity firms and companies they acquire have to usurp liabilities for debt and pension obligations of those companies i said what would this mean for your business.
he essentially said his business needs to do a better job of communicating their value to washington so something like that doesn't take place. >> we heard from cooperman was there diversity of opinions about impact of big tech on investing ecosystem? some feel like there's an all-a-gopoly some feel they're competing with each other, let them go. >> there certainly was i was surprised to hear, although he is a big tech investigator, glen said he doesn't believe the crime meets the punishment discussed in terms of regulation now in the industry, and he thinks that they need to take a step back, make sure they're not overregulating and punishing these companies for doing things that may not have really fit the crime as he called it. >> finally, things that maybe didn't get discussed this year as years past. >> good question. >> little discussion of cyber
risk, security, things like that >> and crypto. heard a lot about crypto the last couple years. i think andrew asked jay clayton one question on crypto, other than that, didn't hear about bitcoin, crypto. people seem measured talking about big mac row things trade war was a big theme through the day yesterday. >> leslie, we're getting breaking news from the fed we're going to steve liesman >> thanks very much. two stories breaking first of all, new york fed announcing it will hold daily $75 billion repo operations through at least october 10th as a result of what's been happening in the overnight lending market, some disruption there. the fed moving in, going to regulate through october 10th. it will also offer at least three next week, 14 day repos, instead of supplying money overnight, it will extend out the term effort by the federal reserve to get ahead of this by new york fed and get on top of those, $30
billion operation. one of the dissenters, coming out with additional comments about dissent. he says first of all it is unusual for the fed to be so easy with the economy quite so robust looking for 2% growth, getting it says the expansion will continue so far trade is a risk, but impact has been limited. lower inflation appears to be temporary, it has been up the past several months he points out. this is the concern, that low rates encourage excessive risk taking, too much easing causes risk of financial stability. high leverage can make recession more severe. he is concerned about the commercial real estate market. it has always been a concern he says commercial real estate losses may be larger in the next downturn he details one area called co-working space models. says it creates potential financial risk co-working space models.
he doesn't name it, wework is the co-working model space, doesn't name wework. says short term leases to small unless mature firms that go out of business quickly, landlords, banks potentially at risk from co-working model in downturn banks that own loans, landlords hit with empty space cities, he doesn't name them, boston is a big one, new york another. co-working firms may face greater defaults to be clear, doesn't see the current level causing a downturn, is worried about leverage in the system here, specifically from co-working arrangements that could make a downturn if it happens more severe and create systemic risk on the back end. jon? >> thank you for that. leslie, it is like one of the fed's risk factors is wework i wonder how this impacts that company's desire to have an ipo
and get that done before the end of the year. >> this is really significant. this is the first time that i can recall that we have seen someone of rosengren's stature that said we believe wework is a risk to the economy if there's a downturn so far it focused on what does it mean for wework in the prospectus, they say both yes, we would be impacted in recession, never experienced a recession with this business model before on the flip side, we cater to companies looking to lower their own expenses and they turn to wework to do that. we can benefit from more companies using the service. i think it is significant. >> steve, do you think he is over his case? >> the fed has a spotty record identifying bubbles while they happen, before they happen it is now a bigger part of
central banking in the wake of the financial crisis to use what they call macro tools, leaning on the banking system, spotting, identifying, trying to deflate bubbles while they happen so the fed can be freer, independent to use its monetary policy for the broader economy. so this is now a new thing the fed has to be doing. i think the concern, two specific ones here first of all, that wework concentration or co-work model are big chunks of the real estate in boston and new york. i don't know if leslie has the percentages, but i think they're big chunks the other thing is use of spes special purpose entities one of the specific concerns in the speech is that the spe doesn't allow the landlord's recourse to losses because losses are contained there's no recourse back to the
parent i do not know wework uses that specific model, but there's implication co-working spaces do not allow recourse it is the fed's responsibility to be worried about the banking system whether or not rosengren is right about this, that's part of his responsibility >> just to clarify, steve, wework is new york's largest office tenant. not sure on boston >> i think they're a big chunk in boston, too >> definitely a big chunk. >> i wonder after that journal piece, a lot of color essentially about adam newman and his management style, and this which is more impactful on bonds, which is what we're trying to watch in terms of empirical data >> those are declining through the entire ipo process as people assess the risk and likelihood that it goes public. i think the question, too, to take it a step further, if you are a landlord, what is it like doing business with wework, you see the process unfold, bond
prices decline over time is it riskier to rent to them, do they need to put up more in the outset to get leases, which is key to the business model and expansion plan. >> leslie, that's part of what rosengren is talking about, interesting you bring that up. rosengren talks about rates being low, reach for yield that means that yield in this sense is lower rents, and so the question becomes why aren't the landlords enforcing this, and the reason is because they're hungry for the yields, the investors in real estate are hungry for the yields that are offered by the wework relationship so in this case, the market is not enforcing that kind of lending discipline you would expect, and that's where rosengren has the concern with low rates. >> wrinkles here at the macro and micro level. steve, leslie, thank you and after the break, the company conducting the background checks for the likes
european markets will close in a moment. seema mody has today's action overseas. >> hi, carl. european markets slightly higher, boosted by fresh stimulus measures out of china banks are one of the best performing sectors commerzbank plans to cut jobs. they'll sell a stake in a polish subsidiary, expected to reduce assets by 17 billion euros when talks with deutsche bank fell apart, the stock hit a record low, is trying to streamline business. brexit back in the spotlight, a brexit deal could be reached by october 31st
the pound hit a two month high, but dropped after the irish foreign minister dampened expectations another global market posting big moves, india the stock market seeing the biggest jump in a decade after the indian government unexpectedly cut corporate tax rate from 30 to 22%, making it one of the lowest in asia, ahead of prime minister modi's rally in houston, texas where president trump is attending top of mind, the trade dispute between washington and new delhi. jon? >> thank you. let's get a news update. sue herera has that also at hq. >> indeed i do, jon, thank you very much. here's what's happening at this hour new york mayor bill de blasio ending his run for the white house. he made the announcement on msnbc's "morning joe" today. he said he would support whoever the nominee is for the democratic party but said it
needs to be a progressive. >> contribute all i can do this primary election and it is clearly not my time, so i'm going to end my presidential campaign, continue work as mayor of new york city, and keep speaking up for working people. >> demonstrators around the globe demand action on climate change protesters rallied in countries from india to czech republic to australia, with demands including reduction of greenhouse gases and more clean energy programs. rallies ahead of the climate summit in new york next week. researchers from more than a dozen nations prepare to launch the biggest, most complex expedition ever attempted in the central arctic the yearlong expedition to understand the region's climate includes 600 scientists from 19 countries, including germany, the u.s. and china you are up to date that's the news update jon, back downtown to you. >> i'll take it, sue, thank you.
now checker, the startup behind background checks for companies like uber, lyft, grub hub, post mates is completing a $160 million funding round, taking its valuation up to more than $2 billion. daniel, good morning >> good morning. >> so first question i've got for you, the impact of california's assembly bill 5, ab 5 on the gig economy ecosystem which you play in so much. i imagine that if things move towards fuller time employment or working longer periods of time, that means less turnover, that would be bad for you. >> yeah. so first on the fund raise, we're announcing today, it is that checker -- it is validation
we're a technology leader solution in the u.s. and north america. specifically on ab 5, i think it is a recent development. the gig economy and flexible work force is a new trend going fast, regulators are catching up we're observing it i would say no one at this time knows exactly the impact will be for our business specifically. we're not worried about it because in the long term, we believe in flexibility delivery is huge and growing in a huge market. we're bullish on the long term, this is not going to effect business negatively. >> and daniel, how much of your business proportion wise is these gig economy companies versus other types of small businesses that also need these types of services, background checks, driver's record checks,
credit checks. >> we're going in the technology industry, early customers are leading gig platforms of course. but in the last two years, we diversified our business, now checker is working with retail customers, food services and restaurants. the background check technology we developed is extremely useful for any type of business, especially large companies that are hiring a lot of workers, and with a lot of frequency and volume this is where checkr shines. we work with companies like a allstate and bmw and it is going well. >> any hesse tans to work in states that are working on gig economy legislation? >> we're doing business nationwide california and new york and other states are huge population
centers. i think independent of regulations, i am bullish on the long term, i think the business is going to grow, driven by consumer demands i don't know, you or other people watching, i think everyone uses ridesharing, food or grocery delivery even more. those jobs will continue to be here, supply and demand is strong for the businesses. >> finally, daniel, how far does this go? you do criminal background checks, driving checks, drug checks you could do other sorts of checks on civil suits or social media reputation do you think there's a line in what you will or won't track for employers? some of the checks, it is not just when people are hired, it is continuous over time. >> yes we invented the continuous checks before checkr, there was a one time process so we innovated the continuous
check. there's a risk of privacy and respecting people's life and not being intrusive. that will detriment workers and consumers, so the position on creating fair products that help people get access to jobs and opportunities. at the same time, we're trust and safety platform, so we have large customers and companies make sure they have a safe workplace, safe platform for the good of customers. this is what we do as a company. it is a challenging and exciting spats and-- space >> that safety privacy balance is what i wondered about thank you. >> thank you. when we come back, airbnb will ipo next year, expects to a rough stretch for debuts in 2019 on track to post the worst performance for profits in 20 years. we're going to talk about that. meantime, we have come off
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should sell off what's app and instagram. joining us, david golden, managing partner, and neil is sekora happy friday good morning >> good morning. >> neil, i wonder setting all of this up, do you think the big tech companies are in all-a-gopoly territory because they've gotten so powerful >> it is fair to say that instagram and whatsapp, are a powerful all-a-gopoly for u.s. based and international markets. whatsapp, 2 billion users. safe to say the two acquisitions give facebook a huge strategic
lead, and i think their influence and power in that market are critical. senator hawley points out fair concerns around that i think it is ridiculous to make facebook spin those businesses out. mark bought those in 2012 and 2014 respectively and those particular companies are strategically critically important to the business. it might end up causing or creating more shareholder value for them to be separate entities i believe the strategic focus for facebook continues to have those be a three legged stool in the execution of long term strategy. >> david, facebook would argue not so, you can't just look at the u.s. or u.s. and europe, look at china, look at 10 cent, what we have to deal with on a global scale this is not as strong for us as it looks what do you say? >> well, i think that will be
their best argument. and as mark twain would say, don't let facts get in the way of good stories. they're too big to succeed rather than too big to fail, not an economic instrument but public policy, misuse, hackers and the like i think it will be very difficult for facebook in the wake of all of the pressure from capitol hill and the wake of all pressure coming from state and local governments to continue business as it was i think the greater issue for companies like facebook and ironically saw it this week with wework, the failure of corporate governance from early days of the businesses when private to when they're very large public companies. the boards of directors of the companies in the case of facebook that serve at the pleasure of mark zuckerberg are paid by mark zuckerberg and can be terminated by him, are essentially potted plants, not
able to provide the necessary corporate governance to make facebook successful. >> neil, the public markets ratified it, right they told these companies we're willing to tolerate it the ownership structures, management structures, at least until the wework was filed >> i think the public markets have actually reacted negatively to companies that have used cash we tend to not love businesses that use cash as a moat. you saw with struggles uber and lyft had in public markets as well as the lay for the wework ipo, there's a fair amount of concern about businesses without fundamentalal technology look at zoom, look at cloud flare or data dog, these are businesses that got far based on technology and reasonable use of capital, and in many cases got close or near to profitability
that's what public markets like to see as venture investors, that's what we like to see. as you see ipos coming for 2020, that will continue to be a focus for public market investors and private market investors >> okay. let's move to ipos to airbnb announcing it hopes to go bpublc in 2020. goldman, sachs says this year so far is on track to be the worst year for ipo profits in more than 20. a tough environment to debut in at the moment arguably if you're an investor looking for profits. i wonder, neil, part of this is biotech. there's a lot of biotech startups coming to market. none of them are profitable. how big an issue is this really? >> so i think that biotech is a different business than most tech companies you're right, jon. many biotech companies come to
market, and it is a financing event. often with later stage private financing, tech companies come to market, there's almost been an ipo before the public markets. once you reach public, it is liquidity for early investors in those businesses, so with biotech and tech, it is hard to compare the two. you're right biotech tends to lose more at my previous firm, we were lucky, are lucky to invest in airbnb, and what brian and team built is remarkable. two sided marketplace, did it capital efficiently. over time raised capital later in the cycle after they built a hugely sustainable business, 150 million listings, 5 million houses for rent. it is a very special business. and it has been profitable for multiple years doing a billion dollars a quarter in revenue when you see companies like that come public in 2020, it's
something that everyone in the ecosystem can get excited about because those are real companies. >> david, you would think if companies stay private longer, they would be more profitable by the time they came out is there a contradiction >> there's certainly a contradiction, you would think that the real issue is there's so much liquidity available to private companies, essentially equity has been free a long time and there's been no need to go public you talk about ipos as the be all, end all, for guys like neil and myself, early stage investors, talking ipos is like talking about quality of air on top of mount everest, matters to very, very few number of people, most people aren't going to be there. most companies we back will not find ultimate success in those public markets but the amount of capital that's been available has kept them from any need to even try. >> giving us a lot to think about. dave, neil, thanks
have a great weekend >> thank you very much a busy week of news for general motors getting more news. sue herera is back at hq >> indeed, carl. want to draw your attention to breaking news on cnbc.com. the canadian trade union official for unifor is commenting on layoffs occurring because of the gm strike roughly 4500 members have been temporarily laid off because of the strike which is going into the fifth day. and the issue is basically the fact that there are no parts so the suppliers are getting hit as well. this latest number includes about 2500 workers at gm's oshawa assembly plant, and 2,000 that work for gm suppliers the longer the strike goes on, of course, there are no parts, and as a result of that, layoffs keep building up the entire story on cnbc.com carl, back to you. >> sue, thanks for that. we're expecting the
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shoe and $60 cheaper. we did get a statement on amazon's offering echoing a comment which read it's not enough to simply copy their shoes. they need to follow their environmental actions, too. we'll have a pair of both amazons and allbirds with us on set to compare. this is a trend, it seems, when it comes to apparel. stitch fix is doing its own brands of certain clothing items they think are trendy. allbirds kind of like rothy's. they have their own look and people will notice what it is that you're copying. >> despite all the reporting about amazon and their practices on the merchandise website, stau stock has been in a really tight range. hard to know what's going to shake it one way or the other.
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by the way, she's the next mozart. as usual we were behind schedule. but sophie's enthusiasm cannot be dampened. not even by a run-away donut. we powered through it in our toyota prius. because a star's got to shine, no matter what. it's unbelievable what you can do in the prius. toyota let's go places.
from kim kardashian and tom cruise to elizabeth warren, deep fakes, privacy concerns and what big tech is doing to prevent them. take a listen. >> reporter: this fake video of comedian bill hadar went viral showing how sophisticated and far reaching deep fake content has become. the technology is also accessible and cheap. the chinese face swapping app has become that country's top smart phone app. it has brought privacy issues. >> we can literally carpet bomb
the internet with misinformation. >> reporter: you see a leading deep fake expert hired by facebook to help weed out fake content. >> both sound like joe rogen. one is completely synthesized. >> reporter: twitter recently acquired fabula to help detect manipulated content. google says it is investing in ways. >> we're sort of playing catch up. here is what i can tell you is the end game. the end game is people like me will lose. >> we've tried to talk to as many people as we can about this. i remember a couple months ago saying the industry has to work together. >> it seems like we're in an era where people are really looking to believe whatever they want to believe anyway. so you wonder to what degree does even the flagging of a
video as being fake is that going to have an impact. right now we have deep fakes in quotes and the written word and people are eating it up. really, we need to get smarter about verify. >> technology does not make it easier. that's for sure. fed vice chair joining sarahizen saying the fed is going to take interest rate policy meeting by meeting. he voiced concerns about a slowing global economy and ongoing trade policy uncertainties. take a listen. >> it's not a sign of concern about the economy. the economy is in a good place, but it is an indication that the repo markets and the federal funds markets are absorbing some supply now, and there are some adjustments there that we have been making. >> great interview. more vaping news.
a group of senators are urging the fda to remove all pod and cartridge based e cigarettes from the market. senators sending a letter to acting fda commissioner citing reports of 530 cases now of vaping-related lung disease as well as eight deaths. we have been awaiting more numbers from the cdc on teen use, for example. we are going to reair an updated version of vaporized, america's e-cigarette addiction tonight. i have spent the last couple of weeks trying to keep up with the story. it's become not just a u.s. policy risk story, but other countries seeming to stiff arm the product. >> you are ahead of the curve looking into this. to what extent do you think this
is a fundamental danger to the vaping phenomenon? >> it's significant. more than it was when we started shooting. juul will tell you we need the category to exist. i think maybe they are questioning whether or not that will be possible. we'll watch the markets, obviously. good weekend. let's get to the judge in the half. thanks so much. welcome. i'm scott wapner. reach frg records. stocks less than a percent away from the new closing high. is a bigger breakout about to happen we are joined for the hour on this friday. shannon is the chief investment officer and amy raskin is here. joining us in just a few moments is tom lee, the head of research. we're looking forward to having him today. i should let you know, we are waiting on a news nfen
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