Companies dont have exposure to china, with the exception of amazon, which as a retailer and a distributor has a lot of exposure there they have the most china risk, outside of if you leave f. A. A. N. G. , of course theres alibaba, which its all china exposure i guess thats how i would answer the question. I would also make the simple point if you look at the f. A. A. N. G. Names, you pretty much had acceleration growth, Revenue Growth acceleration for all four names but theres a couple of very specific issues in the back half of the year. The ones with the best fundamentals right now with the easiest valuations is facebook and google krish, whats the next irobot i mean, looking at hardware, whos got an amount of china exposure that could be really damaging you know, apple clearly has a pretty high china exposure and as you mentioned before in this program, anytime theres negative news on u. S. china trade, apple becomes kind of the punching bag what i would characterize as overall what you have seen is that apple has been trying to mitigate some of those risks, especially in china, given the fact that they have done some trading with iphones, so they can potentially solidify their market share or the iphone units sellthrough. They had some pretty good strength on the services side, especially in calendar q1, which typically coincides with the Chinese New Year and theres a lot of game downloads happened in china and the third thing i would also characterize is the fact that one other important step apple is taking is the new foxconn festival in india, which would eventually help them actually ship more into india without the risk of duties, and that would potentially help them gain more share in india that could offset future weakness in china mark, ive got to ask you about netflix versus roku. I mean, heres what i know youve been bullish on netflix you seem to be kind of lukewarm on roku, but its had an amazing run and now youre still not really behind it on valuation, even though you think netflix has a lot higher to go from here did you miss something on roku and its rise and why you still not completely onboard yeah, so, we downgraded three stocks, three midcap stocks that were phenomenal outperformers in the first half of the year. Trade desk, lending tree, and roku and the one we clearly have gotten wrong is roku that stock continued to soar another 30 after our downgrade. They have got really the winds in their sails so i think its a very good asset. I would prefer to buy it on a pullback and i dont know that i have a particular catalyst for it theyre a great play for the streaming wars that are coming up later this year we think they have a catalyst in terms of international exposure. Well probably be ending up chasing it sometimes you get the valuation downgrades can be very tricky and i think we got that one wrong. On netflix, i find netflix very interesting. This is obviously a contrary call with the stock down near 300. You pointed out before, the stock hasnt really done anything in a year and a half. Theres all of this overhang related to the disney launch later this year. Im just going to make the simple point that the content slate thats coming out of netflix in the back half of this year is strongest that the company has ever had and so if they cant put up the best subscriber numbers that theyve ever had, then theres a bigger problem and i dont think there is so we actually like netflix. I think its probably the maybe the singlebest contrarian call in large cap outside of those outside of lyft and uber although when theyre spending 500 million, mark, with on three movies, how expensive is too expensive in terms of how much theyre willing to spend, look, their cash spend is 14 billion, 15 billion a year, but they also have 150 million paying subscribers and theyre adding 30 million paying subscribers every year, which means that incrementally theyve got 3 billion to 4 billion in extra spend to add on to that video ad spend. Look, no doubt about it. Theres going to be a day when netflix is spending 20 billion a year on video content. If they have 250 million subscribers, they can do that and expand margins thats the scale advantage that netflix has. I dont care who theyre competing against, nobody has that kind of subbase therefore, nobody can generate those kind of positive economics longterm. Krish, its been amazing to see the volatility, the pullback and then really the bounceback, the rally weve seen in semichips, just in the past week, with all of this ratcheting up of tensions between the u. S. And china im curious, though, longer term, youve got china investing in its socalled big fund, which is aimed at the domestic chip industry in that country youve got headlines like the one today, huaweis founder wants a, quote, invincible iron army to fight the u. S. Given the fact that we do have these dynamics between two countries right now, do you think this is going to accelerate chinas own development of its chip industry and if it does, what does it mean for the u. S. Semiconductor stocks sure. I mean, i would say, absolutely, yes. China does have big ambitions. And they are trying to do everything that they can to accelerate the Semiconductor Industry the original was the Semiconductor Industry by 2025 and clearly, they have fallen behind on that timeline. The grand scale for them is to eventually compete with the qualcomms of the world, the intels of the world. But whats really enabling them are some of the Semiconductor Equipment companies, like the Applied Materials where they dont have any viable second source to them so at the end of the day, i would say that a lot of chinas semiconductor ambition really hinges on the Semiconductor Capital equipment sector, where they dont have a second source and they would need the u. S. Help in that and i think thats kind of where the whole debate among investors today is in, you know, how that is going to enable china to get to the next level on sanctions finally, mark, are you watching some of these expirations of huawei licenses and exemptions as some sort of dramatic deadline . Lets see, dramatic deadline for names like google . No, i dont think so i think its largely a nonissue for google its a small issue at the margin i dont think its actionable. And if there were a tradeoff on google shares because of that, i think that would create a better buying opportunity i think its almost immaterial to the business. All right says a lot about the size of the other businesses, thats for sure mark, krish, appreciate that, guys nice way to start the hour thank you, carl and when we return, kara swisher has been testing out the new apple card were going to get her take on that and putting the trust back in tech, next. Stay with us hey im bill slowsky jr. , i live on my own now ive got xfinity, because i like to live life in the fast lane. Unlike my parents. You rambling about xfinity again . Youre so cute when you get excited. Anyways. Ive got their app right here, i can troubleshoot. I can schedule a time for them to call me back, its great you have our number programmed in . Ya i dont even know your phone anymore. Excuse me . what . I dont know your phone number. Aw well. He doesnt know our phone number you have our fax number, obviously. Todays xfinity service. Simple. Easy. Awesome. Ill pass. Well, the first reviews of apples new credit card have been trickling in and our next guest has been using the card for the last two weeks and says in her latest oped, when it comes to creating products you can trust, apple, quote, appears to be doing the right things, unquote. Recode editor at large and cnbc contributor, kara swisher joins us now kara, good morning hi. So this apple card, theres no number on it, no Security Code apple says that theyre not going to track any purchases that you make on it. Of course, if you buy something from the apple store, they know that from the retailer end but is this apple trying to create a market for the privacy that so many of us have sort of given away in this era well, yeah, i think part of it that the privacy element [ inaudible ] uh, it sounds like we really dont have great audio from kara on this, guys, which is too bad. Some of us have been briefed on this, as well. Even though i didnt sign up for the card, its a really interesting attempt, i think, to change the entire card paradigm, right . I mean, because with this, theres no number on the card. You get a number inside the wallet appthat changes pretty much every time you use it so nobody can steal your credit card number. The one thing that for me, as a consumer, conceptually doesnt work for this is you cant take the transactions and import them into Something Like mint or wealth front or these other services that help you track your transactions. So its kind of a universe unto itself, a walled garden. Which is a very apple thing. Yeah, its really, apples staking a claim in the sand in terms of security, in terms of privacy, in terms of rethinking basically the economics and the businessard credit ca around cr. Basically, protecting consumer data much more than weve seen with other Financial Institutions that are involved in this game right now but as you mentioned, its really very sticky the whole point of this is to be that much more engaged in using your apple device, your iphone, wallet, and this idea of services and growing that business within the apple ecosystem. And carl, oits not just your most creditworthy consumers that are getting this card. Some people with some Credit Scores in the 620 arena have managed to get it, but with a low credit limit weve tried to get from apple some description of what a minimum credit score is and theyve been pretty tightlipid about that but the headlines on some of these reviews is that apple is dipping back into some kind of subprime Consumer Market i think well get back to kara swisher in a minute verdict announcing operations after a significant change in financing surprising both the industry and Venture Capital committee. Ceo jim cantrell, whos been our air in the past, has left and cofoundered john garvie has stepped in to try to salvage the startup the company also laying off a majority of its workers. This is significant, because vector has been viewed as an emerging frontrunner in the small sat. It received its First Air Force contract just last week, its unclear what happens to that now as well. But since its founding in 2016, vector has raised about 100 million from investors, including codeham growth partners, squequoia capital, lih speed, and Morgan StanleyInvestment Partner partners so what im hearing now is the investor pulled out, but this speaks to how new and how in many ways untested this commercial space sector really is space is hard, but investoring in it can be hard too. And with some of those investor names i listedoff, this is an area thats starting to get increased interest and money from the Venture Capital community and other kinds of investors. So its one to watch are these essentially Hardware Companies in a new era . Im used to sort of the playbook for flameouts in Silicon Valley hardware we saw the mp3 players in Handheld Computers things like there. There was a sort of inventory and kind of component issue that they could get into and then things just blow up. Is there that kind of playbook yet more space i think what youre seeing start to materialize, and you know youve heard me say it a million times on this show but in many ways, you see the space sector as the next internet, and going through those same kind of growth patterns and trials and tribulations that we saw in the 90s when you look at small sat launch industry, theres more than a hundred Companies Competing in this arena. Only one of them has actually made orbit, has gone to orbit so far. So theres a lot of competition, not necessarily as much demand yet, and youre going to see winners and losers and i think this is an example of that and yes, its space hardware that is absolutely what were talking about here can bubbles form in space is that possible, in a vacuum . A physicist can help us out. Meanwhile, weve got kara swisher back kara, really wanted to hear what youve got to say about this apple card are you going to keep it or are you just trying it out you know, i like it im going to use it all the time a couple of things that are important, obviously, are the privacy elements and the ability to see where ive actually bought things by physical location, so you can remember things the second part is, i had a bit of a security thing when they werent sure what i was buying on the apple services, and it was immediately resolved via text it was very fast and it was like i was talking to a real person, which is very interesting. And the third thing is, the cash back thing is very simple and easy a lot of cards have cash back, but these are, you find immediately how much cash back you get depending on whatever youre using so i found it really great and im very excited, for the physical titanium card one of the big issues is, though, that apple pay just isnt everywhere a lot of places ive been here dont accept apple pay big places do, but small stores dont. So that is one of the issues that you can use all kinds of apple pay or any of those services, they need to permeate to small stores and other places and i think thats one of the probably big issues that they have Going Forward kara, how much do you think the fact that apple does seem to be, maybe its too early to say, getting it right here, the fact that they have drawn this line in the sand and the fact that they are saying that theyre trying to rethink ways to protect their users and consumers privacy, data, where they make money, how they make money. How do you think thats setting us up in terms of winners and losers in this new, more privacycentric world . And do you think consumers really care . Do you think thats going to be a big selling point . Its good for the phone they dont need to market to you. This is not their business, just like how they dont need to be in advertising they dont need to constantly be advertising to you thats a plus. And it also helps the phone. And even if it helps the phone, is what theyre going to be doing in software and services anything that makes it more convenient and more seamless the only issue is how prevalent apple pay is how prevalent you can use these services when youre in a big store like cvs or stop and shop, it works great and i use it all the time. And it instantly pops up with the information, so you can remember where you its very convenient for the phone and it so makes my phone a better experience. And i think thats where theyre focused on most of all and the privacy part, obviously, is something theyve been pushing and advertising and Everything Else and its a Business Opportunity. Now, the question and the cashback is just simple, just nice to get whatever, however many percent back just immediately and its immediately put on your apple cash card, which i use, too its designed for the phone and its also a credit card. So thats helpful, i think, rather than just apple cash, which i just had all my other cards on apple, but im not using them on apple pay anymore miami using just the apple card. Kara, for consumers who are using it as a credit card, we know what credit card rates are like in this country, one of the big selling points here is that it gives consumers intelligence on what they would need to do to avoid large interest payments. Has that been impressive to you . Yeah, i like it i havent paid my bill yet ive charged a lot on it, but its a little wheel that tells you how much interest you owe. Dont worry about it, carl my credit is excellent its this little wheel that you play with that shows how much interest you pay it gives you a whole lot more information than most credit cards. Again, its designed for the phone. And so youre used to the Wheel Movement on apples device, if you ever had an ipod or anything like that, so it gives you that information and you can scroll, if you pay now this much, youll pay this much in interest, and you should pay this now here this is the ideal amount and i think for millennials, like, theyre using, you know, lots of these nerd wallet and things like that its sort of in that genera. And so thats kind of interesting. You know, again, privacy is an advertising opportunity and a Business Opportunity for them. But i do think they its not their business, and so therefore, you can sell it in that regard. The whole overall thing i was trying to get to is who do you trust and what else would i buy from apple what other service would i buy, you know, thats the question is what can they move it to agenda agendasies the same thing like, would you buy your sports stuff from nike . Yes, your clothes. Would you buy your health club from them . Would you buy health care from them you can think about all of these Companies Moving to adjacent markets where they trust companies to do more and privacy is a big deal for me, so therefore i trust apple more of kara, thank you got to admit, guys, i like perks. I like perks a ot. And this card doesnt quite have a premium tier yet you mean, beyond cash back. Yeah, like airport lounge access and miles special privileges. Concert tickets exactly yes, carl you have those things for me thats exactly what im talking about. Note to apple, i guess, from jon fortt. As we head to break, dow losses are picking up steam right now. Were down about 279 here are the names not helping the cause this morning pfizer, Goldman Sachs, and caterpillar. Were back in three. Let me ask you something. Can the past help you write the future . Can you feel calm in the eye of a storm . Can you do more with less . Can you raise the bar while reducing your footprint . For our 100 years weve been answering the questions of today to meet the energy needs of tomorrow. Southern company i felt completely helpless. Trashed online. My entire career and business were in jeopardy. I called reputation defender. They were able to restore my good name. If you are under attack, i recommend calling reputation defender. Vo theres more negativity online than ever. Reputation defender ensures that when people check you out, theyll find more of the truth, not trash. If you have search results that are wrong or unfair, visit reputationdefender. Com or call 18778668555. Im not really a, i thought wall street guy. Ns. Whats the hesitation . Eh, it just feels too complicated, you know . Well sure, at first, but jj can help you with that. Jj, will you break it down for this gentleman . Hey, ian. You know, at Td Ameritrade, we can walk you through your options trades step by step until youre comfortable. I could be up for that. Thats taking options trading from wall st. To main st. Hey guys, wanna play some pool . Eh, im not really a pool guy. Whats the hesitation . Its just complicated. Stepbystep options trading support from Td Ameritrade volatility continuing in europe with stocks giving up their early gains. What does action overseas means for rising political risks in the euro zone. Wilfred frost has the flash points from the floor. So italian assets have stabilized today, having fallen on friday, after deputy Prime Minister matio salvini and leader of the Rightwing League appeared called for a vote of no confidence in the government his hope is for fresh elections that he could win outright rather than requiring Coalition Partners as the current situation. That pushed the spread over the german tenyear toll 2. 36 thats the highest since june. A pure leagueled government would almost certainly lead to more clashes with brussels, especially on italys budget that said, there are still many hurdles, even before an election actually materializes. And the move in italian yields this year in absolute terms puts fridays spike in perspective. Either way, it serves as a reminder that those like Emmanuel Macron still have a lot of minds to win over this week, keep an eye on german gdp due on wednesday its expected, like the uk last week, to fall into negative territory. While the key next date for brexit is 3rd of september when parliament return s from its summer recess. Guys all right, wilf, thank you. Meanwhile, asian markets also in focus ahead of u. S. china trade talks in september. Seema mody has more on that story back at hq seema . Hi, jon as we await further details on the u. S. china trade front, it is worth noting that there are a number of geopolitical events playing out across broader asia, at risk, leading to an unintended conflict. Tensions are raising after asia gave its support to pakistan after india revoked kashmirs autonomous status. Moving east, the trade dispute between south korea and japan. Two key u. S. Allies continues to escalates, with both sides tightening export controls and halting trade with one another other a deeprooted territorial issue, being felt in the Semiconductor Industry, but analysts caution that u. S. Firms like apple and zmon that manufacturer there may also be at risk. And as we keep a close eye on hong kong and the protests there, the chinese yuan continues to attract attention this is the third consecutive session with where the central bank set the midpoint at a point weaker than the psychologically important seven against the dollar Goldman Sachs says the major Sticking Point in the trade negotiations between the United States and china will be huawei. The u. S. Governments 90day exemption, which allows u. S. Firms to send updates to the Chinese Company ends next monday and if its not extended, that could invite retaliation from the chinese. And i guess the question, guys, is whether the chinese will use the currency again back to you. Yeah. Whether its that or argentina today, theres a lot to watch all around the world seema, thanks very much. Lets get a news update this morning. For that, well go to sue herrera back at hq good morning, carl. Good morning, everyone heres whats happening at this hour the u. S. Has deployed one of its largest aircraft carriers. The uss Abraham Lincoln to the middle east after months of heightened tensions with iran. Last month, iran boarded a british ship in retaliation to the uk blocking one of its oil tankers. One person is dead following a house explosion in wisconsin the blast was so powerful it shattered the windows of nearby houses residents said they felt and heard a loud explosion and then saw smoke billowing from where the house once stood gymnast simone biles won her sixth National Title and did it in historic ways the olympic champion became the first woman to complete a triple twisting double somersault during her floor exercise routine and she is the first woman in 70 years to capture six u. S. Titles. Look at that and you can add liquor to the list of things that amazon wants to sell you. The company filed paperwork in april to open a 200squarefoot store in San Francisco that would have beer, wine, and spirits. Youre up to date. Thats the news update this hour back downtown to you guys. Carl sue, thank you very much. When we come back, a brandnew episode of american greed returns tonight scott cohens going to join us next with a preview. In the meantime, we briefly hit some session lows, almost got below down 26k and the tenyear yielding 166 were back in a minute r trips t. 4. 95. Delivery drones or the latest phones. 4. 95. No matter what you trade, at fidelity its just 4. 95 per online u. S. Equity trade. No matter what you trade, at fidelity stand up if you are first stand up if youre a mother. If you are actively deployed, a veteran, or youre in a military family, please stand. I will tell you this, Southern New Hampshire university can change the whole trajectory of your life. Stocks back in the red to start this week. We had the dow down about 299 a moment ago, as goldman cuts its forecast for q4 gdp growth on this u. S. china trade tensions, but expecting no deal before the election and you have Morgan Stanley reiterating its longstanding bear market take pisanis got all these things at the top of his head. Remember, the whole theme here has been earnings are going to be flattish for 2019. Like, maybe up 1 or 2 or up modestly in the Third Quarter, flattish in the Fourth Quarter maybe 4 a lots happened the last two weeks. The fed has suddenly started a global round of rate cuts. I think theyve been surprised about how aggressive some of these Central Banks have been. Number two, weve got more tariffs coming so now, this idea about 2019 being flattish with us up 20 , now theres a little bit of a problem. Im now seeing, in the last two to three weeks, ive been seeing earnings estimates come down for all of these cyclical groups, faster than normal so, for example, energy. Oil is a proxy for Global Growth we know that energy numbers have been coming down rather rapidly here a few weeks ago, they were down 13 for the quarter. Now theyre down 21 this really happened in the last three weeks, essentially that is a statistically significant move and much bigger than you would expect. Industrials, these big cyclical sectors here, much more important than energy. Supposed to be up 6 , july 1st now its only 2 and thats been coming down really only in the last two or three weeks since the end of july and the beginning of august and its been coming down for techs. Its been coming down a little bit for financials and if you look at these retailers that are exposed to china, not just the department stores, like the apparel companies, theyre Specialty Retail groups. Up 9 on the first of july this is l brands and gap and all these other ones now theyre down this is a worrisome trend. Because now you have some major sectors starting to take the numbers down and with im concerned with, this is going to really go into whats going to happen in earnings season. The important thing is, this is a very typical quarter so far. The Third Quarter is just lousy. Its just usually a bad quarter. You see the First Quarter up, second quarter, up and this is typical. Were only down 1 in the Third Quarter. This would be an outstanding quarter if it wasnt for the tariffs that we had. These negative revisions were seeing, how much of them are just straightup analysis by the street and how much of them are tied to actual changes to outlooks that companies have put out. I ask that because a lot of this china stuff has happened on the heels of earnings season this is a distinction almost between topdown and bottoms up analysis you have the big global strategists, Tobias Levkovich at citigroup. These guys are looking at broad pictures and they have models that they plug in based on gdp, for example. And they make an estimate of how this is going to impact earnings those are called top down. Those were the first ones to react a couple of weeks ago. But since weve had the new tariffs announced, the bottoms up guys, these are the people who cover daily individual stocks, in sectors like industrial or Something Like that, we call them bottoms up people theyre starting to take a look at the numbers of the companies they cover and thats why im getting concerned. Because those are the rones areally care about the numbers that i put up on a daily basis comes from the bottoms up guys. And those guys are starting to change their opinions in the last two weeks and thats what affects the stock market thats whats starting to worry me ive been in the Glass Half Full camp all year. Important thing is now, these numbers are starting to change, and thats when i start to change bob pisani, thank you weve got the dow below 26000 right now. Back down towards the lows of the session. Meantime, more parents and College Coaches are due in Court Next Month in that Massive College Admissions Scandal known as operation varsity blues the confessed mastermind who rigged the admissions for hundreds of kids of the rich and famous is still naming names its the focus of tonights allnew season premiere of american greed, produced by our own scott cohn scott is in San Francisco this morning with more on what we can expect tonight scott . Hey, morgan that mastermind is william rick singer, bhowhose sentencg next month appears to be on the verge of another delay as he continues to cooperate his most lucrative scam involved getting nonathletes into college as athletic recruits its a deal he pitched to hundreds of parents, including one we found he asked to remain anonymous in order to protect the friend who referred him. He inquired as to whether or not my friend had played water polo i told him my son had never played, was not familiar with the game, and he explains that would not be disqualifying for him. Finally, matteroffactly, he cuts to the chase. My son could be admitted as a member of this team the day he arrives on campus, he may attend one meeting, possibly, or be dropped from the team the day he gets there he then proceeded to tell me that there would be a fee of 100,000 to make this happen that parent said no, but hundreds of others dove right in, including, allegedly, Actress Lori Loughlin and her Fashion Designer husband, massimo giannulli. One of their daughters just yesterday broke her silence on instagram with a twofingered message for the media. Go inside this stillunfolding scandal on tonights season premiere of american greed tonight on cnbc. Scott, this one was just made for american greed or american greed was made for this i dont remember, since bernie may dove has be madoff has been so much on the forefront of american consciousness and also involving this core brand. Absolutely. If you are a parent who all of us as parents want the best for our kids and you see Something Like this happen, it absolutely strikes a nerve. If youre a kid whos trying to get into college and you get shut out by this kind of conduct, it just strikes a nerve in terms of status, in terms of Higher Education and all of these things are going on. Its absolutely a subject that was made for american greed. And were not even were still in the middle of the story. We havent even gotten to the end yet. Scott, well be watching this closely tonight. Thank you. Be sure to watch the season premiere of american greed, the College Admissions scandal that will be tonight at 10 00 p. M. Eastern and pacific time, only on cnbc looking forward to the voice puns got to be tons of them still to come, first, Podcaster Adam corolla, but first, Rick Santelli 30year bonds getting very close to their alltime low yields the knob spreads may hold the key to the next move tune in after the break. Im very fortunate i can lean on people, and that for me is what teamwork is all about. You cant do everything yourself. You need someone to guide you and help you make those tough decisions, thats Morgan Stanley. Theyre industry leaders, but the most important thing is they want to do it the right way. Im really excited to be part of the Morgan Stanley team. Im justin rose. We are Morgan Stanley. They use stamps. Com all the services of the post office only cheaper get a 4week trial plus postage and a digital scale go to stamps. Com tv and never go to the post office again. Im scott wapner today, a flurry of worry, thats what were discussing as no less than four wall street firms come out with their investor playbooks today. Well debate where stocks are likely to go from here plus, our call of the day, from one of our own stephanie link on the new name she is buying and why and were Trading Retail stocks. Well go through the list and trade them and debate them coming up at noon on the half. Guys, see you in about 20. Were just off the low sessions of the day. Lets get to Rick Santelli with the santelli exchange. Equities are soft and so are Interest Rates today i see a 216 for 30year bond yields on the 7th, we had an intraday low of 2. 11. 210 from july of 2016 is the definitive area to Pay Attention to, the alltime low closing yield. Listen, theres a variety of cute names we have for spreads on this trading floor. The first one, and i wanted to show you a chart, is the fight thats 5s versus 10s so tenyear maturity minus the yields minus the fiveyear maturity this chart is a oneyear chart and as you can see, flat this thing is going flat now, as you can go to the next interesting name, knob, note over bond. Its 30year bonds over tenyear yields thats hovering over 50. Knows this chart this is a threeyear chart notice its one of the few, if not only subsegment yield curves you know, because you can combine them in a variety of ways, that is still really a steepening trade think about it the long end, which very few domestic investors have that much interest in, who wants to take the risk of surfing down the risk of the time on the yield curve, when you could get juicy yields in very short maturities that is one subset but theres a whole global subset that needs longdated highquality paper, like treasur treasuries, like bunds, like guilds these are important demand institutions, whether theyre mutual funds, Insurance Companies that match longterm liabilities, longterm, steady appreciating incomegenerating assets well, if you look at the yield curves around the globe, at least our long end, our 10s and 30s have some juicy yields well, look at the 30year versus the 10year on a chart from the very first year of a Double Bottom in tens, which was 2012, july you can see that they werent quite in sync 30s and 10s, but now on the far right, you see 30s are leading the way. That is because that steepness of the nob has made it so that the first line of defense on technicals right now is going to be a potential violation in the 30year bond and most likely, what will happen next is that the rest of the curve is going to play catchup so youre going to see those narrow so one thing to Pay Attention to is the nob spread, if we start to trade and close under 210 because most likely, that will erupt in either one of two things either a very speedy 30year drop, or it will incite 10s and 30s to both drop in either case, the nob spread is where you want to be focusing morgan, back to you. Rick santelli, key insights thank you for bringing them to us when we return, the former head of new yorks taxi and Limousine Commission responds to uber and Dara Khosrowshahis comments about the challengesidhang resri has faced in the city. Were back after a quick break speaking japanese where am i . woman speaking french are you crazy nuts . 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Access to the most 4k content. And your movies and shows to go. The best tv experience is the best tv value. Xfinity x1. Simple. Easy. Awesome. Xfinity. The future of awesome. When you put into law laws that are not market driven, you wind up helping special interests and you hurt other people and the fact is, in new york city, because of the new tlc rules, weve had to restrict the number of drivers that come into the marketplace. Weve had to increase prices, and there are many, many new yorkers who can afford it and our business in new york is doing just fine. But our business in the neighborhoods that need transportation the most, often mass transit, doesnt go into those neighborhoods. Our business is offering there and thats just not fair really whats happening in new york is, theres a secondary medallion system being kind of created with this limit on the number of drivers and the number of cars. And we know that the first medallion system ended in tears. And now were doing it again and we think its a tragedy. Were doing everything that we can to get our message out in new york city, and you know, eventually, we think that good logic will win, but right now were in a pretty stutough spot that was ubers Ceo Dara Khosrowshahi on friday talking on cnbc on the heels of ubers earnings and joining us now in an exclusive interview after the companys q2 results and again, reiterating the challenges uber has faced from the taxi and the tlc commission here in new york. So joining us now to respond to this is former tlc commissioner, mira joshi thank you for joining us and ici want to get your response to those comments from uber about the fact that arguably the regulations that are being put in place here in new york city are creating this secondary medallion system yeah. Its an interesting and attractive analogy at first, because its a cap and the medallion system is a cap. But theres a lot of aspects about the forhire licenses that make it very different than the medallion system first of all, medallions are transferable and for hire licenses that uber uses for their cars are not transferable. And the second is scarcity so what made the medallion system and makes it so unusual is this false sense of scarcity drives up the assets value. But here you have over 120,000 licenses and one in five people are choosing not to renew. And thats generally just not a sign of scarcity, thats a sign of excess. So one of the things that uber did say was that their business is suffering in some of these key neighborhoods in new york city that are maybe underserved in terms of Public Transportation, that would need Ridesharing Services the most i mean, how do you, i guess, counter that problem with these regulations . Because it would seem based on their business model, that is exactly what theyre saying. Yeah, and i think theyve pointed out a few specific neighborhoods, and, you know, if you look at areas like the bronx, which if you look at as a whole, and thats a borough where the income is generally, you generally 30 lower than the National Average for a household. But there theyre actually seen in the last few quarters almost a 40plus percent rise in rides. So there is certainly growth still happening in theboros and thats very important. And its also a matter of choices that you make in business strategy. So some people, some mobility operators in new york city like city bike or rebel, the new electric scooter have offered incomes for low income people. Uber introduced the uber copter so that caters to a different cliente clientele, but there are ridership growth in the boroughs and in the bronx meera, i wonder, whats the right model here because Public Transportation isnt market based so having uber lcyft in the sam market trying to serve those at the low end of the Income Distribution it sounds good i wonder if market distortion works in transportation the way it does in any other capitalist market yeah. I mean, you raise a good point there is a lot of subsidy in Public Transportation. So one of the ways to try to help mirror the equity that you see in Public Transportation in some of the public providers is to ensure that those cars are constantly being used. So the whole ecosystem is profiting, including the drivers and their constant circulation of the cars. So i think things like the utilization rate, which new york has introduced and i think other cities are working towards to make sure there are less empty cars on is street and more in service are excellent approaches i think theyre very under lined with the goals of the company. Meera, its not the first time uber had to wrestle with the municipality their london theyve gone through there in miami. In terms of these cruising limits, i wonder hour widespread could that be . How many more cities could adopt Something Like it . You know, it makes a lot of sense. It defensive flexible to the companies to adapt to them without and focuses on the genuine problem, which is empty cars so i think a lot of cities are going to really look to new york to see if they can adopt similar approaches, a study that uber and lyft put out recently shows that there are similar problems, 40 of the time, drivers in San Francisco, for example, are without a passenger clogging streets. So these are you know recognized problems and this is a valuable datadriven approach that i think makes a lot of sense so moo ra, given the facts that you did used to head up the tail seat cushion here and the fact that are you in your position with nyu. In a position to be talking to other cities how they are thinking of transportation and regulation overall as well, what would you expect the landscape in a major city like new york but also major cities around the world as well, what would you expect the regulatory landscape to shape up in the coming years overall . It should, lets hope, shape up to be a datadriven approach. That means these jurisdictions and a lot more nbc chicago, washington, being much more active about requiring basic data, not private data, not passenger data, basic data how much these cars are on the street and often they have passengers and using that data to inform policy making. And there is larger movements and international mostments about developing data standards so this can be done in a consistent way across the cities, throughout my research with nyu, every city you talk to, this the a recurring scene, they need to manage the street space. And the best way to do it is when you are talking about the same thing, both the company and the city have a very granular and Mutual Understanding of whats going on, on their city streets and how to manage it moo ra, thank you for joining us today. Thank you shares of uber down 6 , lyft is trading lower as well obviously, weve seen some turn interday squawk alley is back in less than three minutes than three minutes zplmplts restores heart rhythms, helps you back from strokes, and keeps you healthy your whole life. From the day youre born we never stop taking care of you. We have been making money doing documentaries for five, seven years now. Now weve gotten together with a couple documentarians with said rick the entertainer with mean gods, and when we went a mad magazine directory, we got together with a company call microventures and we realized that people can invest in these documentaries and get a return on their investment. So instead of doing a crowd funding thing where you put in 50 bucks and you get a teeshirt. Now you put in 100 bucks and you become an investor in the documentary. Weve done a few different ways of making documentaries. The most common way weve done it is i pay for the whole thing and then we go sell it when were done, which works out, usually, big picture but as you know from a business standpoint,paying for the entire thing and hoping to sell it later its not always the greatest road to go down from an investment standpoint. Weve done versions where weve done some crowd sourcing, crowd funding. Weve done versions where weve had some investors im investing the rest of the money. This we will treat like a business you put the money in we build the product we sell the product. You get your money back plus some and it seems leak it might be the new world order for doing these things comedian on two partnerships crowd investing, funding for both films end today via the microventures website. You want to be in the film business you might partner one corolla. Given a number of angles at the beginning of the show roku verse netflix. Lots of models for funding content and lots of ideas how it go etc. To the viewer. Netflix isnt the only answer. Roku has lots of different apps on it, lots of things like this might show up. With the way that modem model works, they get 115 , 15 preferred return i think minimum investment is 100 buck so far 319 investor, theyve raised almost 300 grand. Hes done this before he knows how this works. Dow down 230 it will be a busy week, so lets get comfortable. Lets get to the judge thanks. Front and center, breaking the volatility grip as stocks go for nine Straight Days with a move of at least 1 this is wall street. Ratchet up its worries 12 00 noon, this is the halftime report. Anxiety on the street, the trade wars parking new concerns about earnings recession and rates so what do investors do . Your battle plan is straight ahead. Walmart and macys set earnings will the consumer strike