Good monday morning. Welcome to squawk alley for a monday. John ford, kayla, as well as myself. Remembering david bowie on a tough morning, loss of a major, major artist. The dows down about 24 opponents. Were watching crude falling below 32 as u. S. Stocks struggle for gains after the bruising start to the year last week for some tech investors at least. Will the blows keep coming . Ali ans Portfolio Manager walter price and lead analyst mark mahaney. Good to have you. Good morning. Mark, in a neighborhood here now where everything seems to pivot upon the price of commodities, on chinese regulators overnight, and in the end, some would argue, really doesnt matter what amazons operating margin is going to be going into earnings season. Do you agree . Amazon is a bit of a bellwether for the internet groups of a whole as is facebook and alphabet. Probably more than any other stocks in the group. Amazon, what people want to see are operating margins rising in the north american retail business. And secondly, is that momentum weve seen in aws sustainable that topline momentum . We think the answers to both of those, we have a bullish bias on answers to both of those questions, so we like the stock, and it will matter for amazon stock and for the sector. Walter, theres been this idea that as some appetite for risk goes away, theres going to be this shift that weve been thinking about and talking about for a long time. The shift from Growth Stocks to stocks that are companies that are very profitable. Is that whats happening now . No, i think its basically people are worried about the expectations for 2016 and the estimates for 2016. So, you know, as we get into the forecasts that come in the First Quarter for 2016, i think people are a little worried that companies are going to take down all the macro conditions going on. I look at how the stocks are doing. Netflix is actually up 4 over the past week. Ebay is down just 2 , outperforming apple. There isnt total rhyme or reason to the direction these stocks have been moving in. I wonder if you think once we get some earnings numbers, some solid numbers and outlooks from some of these companies, maybe some of this will shift to whats real versus whats feared . John, let me just pick off a couple of points. One, netflix, we had very specific news when they announced three, six, nine months ahead of expectations they completed their global rollout with the exception of china, that was faster than expected. In a way, you kind of derisked the netflix earnings number because now were focused on 2016 International Launch story. Hard to know how well theyll do. To date, theyve gone very well in almost every international market. Ebay may be a sign if you want a defensive internet portfolio, its hard to say that, but you can. You could put in low p e, some stocks with dividend yields in there. So expedia, probably an alphabet too. So were going to have a real negative take for the year, ebay would be one of them. Walter, you agree . Are there any spaces or names in which you are more willing to sell a rally than buy a dip . No, i agree with your premise, that as people see the forecast in 2016 and i feel more comfortable about whats real and, you know, i think companies will be conservative in their forecasts. Investors will be a lot more comfortable buying these stocks. So i think you get a bid in these stocks and you get a bottom in these stocks as you get these forecasts come out and as people get comfortable with the growth rates in 2016. The problem from an earnings perspective is that Tech Companies now make up 20 of the s p 500 profits and if you see a correction in tech profits, then the overall s p, the overall earnings picture, doesnt look too good. Wa whats the risk that tech drives everything down this time around . Well, i think there is still very good growth in tech. Techs growth really depends on new markets and lower cost ways of doing things. If you look at whats driving facebook or google or amazon or microsoft, its really new Technologies Associated with the cloud or with video advertising on the internet. Those trends arent going away. Those growth rates arent going away. They may moderate in our Slower Growth economy but i think tech has still got good growth, much better growth than most sectors in the chi. Finally, mark, im thinking of a know that was published middle of december titled fang will end with a dang. It argued mostly stocks that have the outsized gains for any year really in any industry hardly ever repeat the second year. I wonder if that weighs on your models as you head into the first, Second Quarter . It certainly does. You look at stocks that outperform like that, you assume that they cant, you know, continue to perform. What our call has been is were sticking with our fundamental guns. We think were going to see consistent revenue trends, demand trends, especially for the leading internet companies. Those fang names, all four of those, we think will be relatively consistent. Youve got instagram modernization really kicking in. Alphabet, what youve got is a real interesting catalyst coming up. Netflix, its all about the international market. So we stick with them. Youre stubborn, if nothing else, mark. Good to see you, mark and walter price talking tech on this monday morning. When we come back, a lot more coverage on china and its impact on u. S. Markets. Former ambassador to china jon huntsman will join us. Tesla working on a new selfparking car. When you could see one on the road. And more pain at yahoo with reports saying Marissa Mayer could plan significant layoffs. A former ceo and interim ceo at yahoo will join us to break it all down. Americans to take us to break here. What are you working on . Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place and lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim. Td ameritrade. Quick news alert here. Wednesdayan Powerball Jackpot n stands at 1. 4 million. The lack of a winner on saturday. I assume were going to do a pool, right . Bought mine yesterday. Youre on your own, keep the whole thing. The texas news release says its a world record. Unbelievable. Speaking of which, lets bring in john steinberg, former daily mail north america ceo. You already bought your ticket. I have. A few hundred million got won. My wife wanted me to buy 20 worth. I said, if youre not going to win it with 3. You buy everything we talk with on squawk alley. Everything, i buy everything. Apple music now has 10 million paid subs. Half as many as spotify. Which crossed the 20 million mark back in june. A new report from the journal says neither apple nor its Media Partners have any idea how many people are actually Reading Apple news. The Service Launched back in september. Shares still they were arent 98 earlier this morning. Trying to hold that 100 level. Your thoughts . Lets start with the music thing. A service ive been very negative on. I still think is unbelievably confusing. Six months in, theyve got half of spotify. This goes back to my argument of multimilliondollar things buried inside apple they dont get credit for. Apple has something thats half as good as that right now. Another few billion dollars on apples market cap. Half of what spotify was back in june. We got to assume its grown since then, though they havent put out numbers. I think the question is communications insider told the second half of 2015 was our fastest subscriber growth ever. They are saying its the best half for them on record. He reiterated that sort of language to me at ces last week. Is the ground compounding more . Three months from now when the new iphone buyers from the Holiday Season have rolled off their free apple music period, are we going to be closer to 14 million paid subscribers at that point . How much do people love it is the question . Ill back off on the topic because its the apple news thing im really this is arguably a terrible business. Every time you do better, you pay more royalties. Making already a bad margin business for spotify worse. This is a way apple can push more people out of its space. Create more lockin on its platform. I want to get to news because this is really bad. If youre three monthses in and you just have figured out you dont know how many people are reading your news product, i mean, come on, apple has a really bad track record with this type of product when it comes to services. Maybe apple music is turning that around but from the interface perspective theyre getting lots of criticism. I dont love spotify. I dont love amazon music though im using it. This news product, they really need to i think get on top of it, make a number of changes with it. Ive tried it. Its not sticky at all. Its too hard to do things like share effectively in it, like see what other people whose judgment you trust what theyre reading. Those are the sort of features i think would change this game. Right now, you have apple news, facebook instant articles, snap chot discover and google amp, googles effort to accelerate the mobile web. All the news you consume will be inside these platforms. And ultimately as a publisher i can tell you every time we go on to a new platform, either single one, every vendor, there are hick yops so this is part of that apple beta year. They did launch things, were imperfect, but like everybody else in that regard. Overestimating the audience or underestimating it . Clearly overestimating it. A false sense of hope you overinvest where you need to be. Advertising is rife with very poor quality ads. These are high quality platforms. Id rather have one of these top leading social networks monetize what i cant sell myself than rando advertising vendors. Selfdriving tesla can now park itself. The company releasing a Software Update giving its model s the ability to open your garage, drive inside, park and shut down. They unveiled those changes yesterday, and said, quote, i think within two years youll be able to summon your car from across the country. He did qualify that two years might be overoptimistic. The only person youre putting at risk if you decide to do that is yourself. It comes as the company is now restricting autopilot away from residential streets. So you can only use autopilot in a road with a Center Median and certain other qualifications because there are questions about whether this technology is advanced enough to actually put others in danger or whether its something thats safe to use. The beauty is the autopilot. I didnt mean to say the autopilot. The Software Update. Just the fact your car is like your phone. I guess your wifi at home is good enough. Im kidding. The fact that cars can be updated with Software Features this way without having to take them into the deal, it is certainly the future, it is amazing. The problem with elan musk is you dont know what to believe. Half the time he says crazy things hes actually able to achieve. The other half of the time, he makes overly rosy predictions about how quickly he can do something. And its a bit of a strategy. So when he writes in a press release your tesla will be able to drive anywhere across the country to meet you charging itself along the way, if i heard that a year or two ago, maybe i would have believed him. Now i think he says these things and hes just sort of i dont know, its pr, its shock value at this point. Theres no way thats happening any time soon. Fine, amazon topping netflix in this years golden globe. Won two awards for mozart in the jungle and transparent. Netflix came up empty. It did get a ton of nominations but fell short this time around. Amazon got as many globes as any network and theyve only been at this the for a year. I want to talk about usa and mr. Robot. Won in its category. Christian slater got best actor. Very much an over the top geek show. Everybody watched that show streaming, over the top. I think if anything, its showing how a very Traditional Network like usa can be an amazon or netflix with a show or two. The exciting thing we learned from last night is you break out now on these over the top platforms. As the threat rises from the amazons, from the netflix, do you think the networks and these Cable Companies are going to start rising to the occasion . Look, i just came back from ces and there were two conversations going on. One was the hardware that everybody was doing and the other was over the top, over the top, over the top. Every telecom company, every media company, every Hardware Company is talking about how to deliver contact to people over broadband and when you see usa win doing that. Netflix had a rough night but still obviously things going well. Futures happening more quickly than ever. When it comes down to it, the Traditional Networks, they have a lot of wins. We dont talk about them as much here because theyre not as connected to new technology but maybe last night was a reminder. When people are watching i dont know its in the nbc family, the voice, thats a lot of people, okay, and its counted. So we cant act like everything is just happening on netflix and amazon. You know how many awards went to broadcast television . Right. None. But people are still watching it. My argument is the big cable winner was not even a cable winner, it was an over the top winner. I think its much worse. When you look at the number of new entries. Amazon, jeff bezos kind of running the table. A guy who sells discounted toilet paper and wasnt even in the entertainment business a few years ago. Thats scary if youre an incumbent, better get moving. Perhaps one of the reasons we care so much is we dont have any other metrix to judge amazon and netflix by. So all we can really talk about are the awards. The ratings are so far down. Theres an article in new york times, theyre not even replacing tv shows now because whats the point, the ratings arent better for the replacement show. So soon there wont be ratings. Youve got some news. I joined a board of a leading millennial site. It was founded by Brian Goldberg who was the founder of Bleacher Report and ive joined their board. 40 million uniques. They grew their revenue from 1 to 10 million in the past year. So one of the very exciting Media Companies out of new york. Youre not a millennial woman for the record. But im a parent. Not even a millennial parent. Your purchase of buzz feed and purchase of elite daily. Im just there to help sell ads and do video stuff. I may ask to guest blog on romper because i have lots of parents and crafttype things id like to advise other parents on. Not altogether though, not drone flying with the kids. Congratulations, john steinberg. Another quick news break. Making some executive changes and a change in its guidance as well. Bob huggen is the ceo now. Hes going to continue with the company but he will be the executive chairman. Theres a new ceo that is coming in. His name is mark ellis. He will be the the new ceo. In terms of guidance for celgene, theyre predicting the full fiscal year 2015 will come in below estimates. Down now almost 5 . Kayla, back to you. Thanks for that update, sue herrera, back at news headquarters. Another exclusive interview from the Health Care Conference, the ceo will join us live in just a minute. Shares of fit bit having a rough day, down 13 and falling below its ipo price of 20 a share for the first time. A big news week for the Health Care Industry with jpmorgan hosting its annual Health Care Conference in san francisco. Lets go back to meg at the conference who is live with another special guest, the ceo of novartis. Thank you for joining us. Theres a lot of questions about drug pricing. Theres a lot of uncertainty in the industry. I want to ask you about cancer specifically. Novartis sells a transformational drug. Youre working on immunotherapy. Where would you say we stand in the fight against cancer now . Its an amazing time in Cancer Research because the explosion of data and deep sequencing of the human genome has allowed us now to target cancers in ways that were never possible before. So youre seeing a tremendous explosion of new technologies like the pd1 Checkpoint Inhibitors or like our program in tcell technology. I think were on the verge of really getting after some cancers that historically have not been addressable. As were there, theres also this tremendous focus now on drug pricing. Im curious to know how that is changing if at all, how you do your business. Is that affecting the way you are pricing new drugs . It is changing. If you look at oncology, where its going is going to be combinationer therepies. As we start to identify which of these tumors are there, combinations are going to be important. We have to think about a different kind of future pricing environment. And one of the things were looking at is how do we start to move away from the transaction of selling the pill towards one of outcomes . Where were all looking at the value of that drug and getting reimbursed, at least partly, on the outcome we deliver. I have to ask you about glevak because its expected to go generic this year. That has been a drug that just has transformed the lives of patients with chronic Myeloid Leukemia from a death sentence to a chronic disease. It has been singled out by doctors for its price, tripling over a decade after it was approved. How do you speak to that . How do you justify a tripling in price . One of the things is that remember when we first launched glevak, it was just for one indication, chronic Myeloid Leukemia. We continued to study the drug. We continued to show that the drug was valuable in other indications within cancer. And so that we needed to be reward for that innovation and we were pricing according to that. So i think if you think about cancer pricing, you think about the value were creating. Remember this is a deadly disease. Innovation has to continue to be reeb warded or were just not going to be able to see the kind of breakthroughs weve seen even in just last year. Are you concerned the political environment is going to really change that equation for you guys, the fixation on this issue, especially in an Election Year here in the u. S. . I think it all comes down to how well we are innovating. So if were coming u. E ing up w breakthroughs in medicine that can turn, for example, like chronic Myeloid Leukemia, into a chronic disease from a death sentence, i think thats going to be rewarded. Some politicians that talk about drug pricing, even they agree we cannot jeopardize innovation because if we do, then were not going to have the kind of advances that Everybody Knows is possible with the explosion of data and the explosion of technology. I want to ask you about immunotherapy. Youve done a deal today in immunotherapy. How big is this market going to be . Specifically cart e . We have an important program, in acute lympha leukemia. We think this is going to be a big new area because were seeing unbelievable responses. We have children that have a. L. L. That have been given this therapy that are in remission years after they got the therapy. Because what happens with cart e, you know, we take the cells out, we engineer the tcells, put them back in the body and they replicate so they continue to seek out new cancer cell that is emerging and wipe it out. So we get this incredible persistence. So i think its going to be a big market. So many more questions. Well have to leave it there for today. Thank you for joining us. Back over to you guys. All right, meg, thank you so much. Lets bring in simon hobbs here. Countdown to the close in the uk and europe. Just less than 60 seconds. A decent bounce after last weeks fall but thats been erased as we worked our way through to the end of the session. Volkswagen, were looking closely at what happens in detroit, partly because at the motor show theyre expected to announce theyre extending the good will and also reports they may have come up with a new catalytic convertor that may appease regulators in this country. Volkswagen is up 2 . Worth pointing out against the backdrop of the big deals, shire and baxalta, 32 billion. The premium its paying. A lot other bio techs within europe are also down. Partly because of some downgrades weve had come through today. Partly because weve had, for example, a big genetic drug tester came through with disappointing results last night, so that sector is moving to the downside. Also on the downside, youve had a conviction cell by goldman because of the amount of debt they have. They believe the dividend may be in some question. Youre adding to that very stark move down that youve had there. Mean time, worth pointing out the ceo of electrolux who became something of a regular on this show is now leaving as a result of failing to buy the business or failing to get it past the doj. He will leave at the end of the month. Ge it would appear has other buyers and is enforcing the breakup fee against electrolux. Finally, let me mention what is happening in spain. As you may have seen over the weekend, the cat catalan did a deal that at the regional level avoids new elections. They will have a majority in the Regional Parliament in favor of breaking away from spain. At the National Level, the socialists are still unwilling to do a deal with the caretaker Prime Minister in order to fight for unity for spain. Therefore, spain at the National Level remains in limbo, which is important to many economists. Guys, back to you. Our next guest says if you use his website, you can buy a home completely online. Well talk about that and the future yahoo with former ceo tim mors in just a moment. Today, were seeing new technologies make healthcare more personal with patientcentric, digital innovations; from selfmonitoring devices that can interpret personal data and enable targeted care, to Cloud Platforms that invite providers to collaborate with the patients they serve. Thats why over 90 of the top 25 Global Pharmaceutical Companies are turning to cognizant. Our domain experts, technologists, digital and data specialists, clinicians and scientists are transforming the way Clinical Research sites collaborate with pharmaceutical companies, and enhancing Patient Engagement with innovative platforms and solutions. Our populations growing healthcare needs present growing opportunities for our clients to advance the future of medicine with digital, and improve the quality of lives. Choose, choose, choose. But at bedtime . Why settle for this . Enter sleep number, and the lowest prices of the season. Sleepiq technology tells you how well you slept and what adjustments you can make. You like the bed soft. Hes more hardcore. So your sleep goes from good to great to wow only at a sleep number store. Find the lowest prices of the season, going on now. Save 600 on the 1 rated i8 bed. Know better sleep with sleep number. Good morning, everyone. Heres your cnbc news update. Iraqi Officials Say gunmen have stormed a mall in a mainly shiite neighborhood in baghdad killing at least ten people and taking hostages. The gunmen reportedly set off a car bomb at the entrance to the mall before moving in. Officials say another 25 people were wounded. Mexican marines giving the media a look inside the Tunnel Network that El Chapo Guzman used when he tried to escape capture on friday. Authorities have begun the process of extraditing the drug lord to the u. S. But they say that could take a year or longer. Two afghan women and a child have drowned off the Turkish Coast after their migrant boat sank in the aegean sea. Five others swam to shore. And pope francis has called for a bold and Creative Strategy to deal with global migration, insisting that europe has the means to absorb the refugees. In a speech, he said humanity must not let Security Fears stop countries from taking in the refugees. Thats your cnbc news update this hour. Back to squall alley. Moving on, changing its name to 10x today. Keeping the option. Com brand as well. The Company Announcing its now the first place you can buy a home completely online. Tim morris is the ceo of auction. Com, 10x now, and hes also former cfo and interim ceo at yahoo . Well get to the news on the name change in just a sec, but lets start with yahoo . New york times report says more than a third of employees have left the company in the past year. Mayer could be planning significant layoffs. This is starting to look like the old hp playbook of significant layoffs, Financial Engineering as they then search for new Revenue Growth and then, you know, rinse, repeat. How does it lack to you . Well, it seems kind of eerily familiar to the fall of 2011, beginning of 2013. You had a lot of the same elements in play. You know, im honestly, im not that current on the yahoo story anymore. I think its a very tough job. You know, that is a big, big ship to turn. A number of management teams have kind of rotated in and out trying to do so. I just believe they need more time. They need the time to make a plan stick. While 3 1 2 years may sound like a lot of time for the current management team, it really isnt, with such a big job. Wow, i shudder to ask how many years you think it would take, but in the interest of time, i want to be sure to get to your news as well. Tell us about 10x, the changes your companys make today. Auction. Com is still a subbrand that youre going to have, but what are you trying to do in residential and commercial real estate with 10x . Well, its an exciting day for us. This is really marks a next step in the eplucian of our company. We really see it, 10x, the name, as a rallying cry. We want to make buying and selling real estate ten tyimes better for everybody involved. We are, as you note, both residential and commercial. Where weve done about 35 billion worth of transactions in our history and about 8 billion of that was last year on some nice strong double digit growth. So weve got a lot of momentum. Really, the name of the company is changing because were changing. We are, now, going to be the first true end to end online experience on the residential side for buying a home. Were alady that on the commercial side. We have both auction now and coming in march nonauction alternatives. Which is new and value propositions for brokers and agents too. Is this part of a desire not to be associated too strongly with auctions . Auction. Com, you pretty much expect just auctions when you go there. With 10x, are you really trying to emphasize this other means of transaction . What kind of percentage is that of your business now . Well, the vast majority is through the auction mechanism. Thats a wonderful mechanism through buying and selling with certain access. To really go after the whole transaction value in the u. S. , you have to have both that auction and nonauction functionality. Really taking the best of the offline world and developing a process to it to arrive at a better solution for everybody. Tim, when you came on board as ceo, part of the thinking behind that move, according to the Companys Press release, was they wanted someone with experience running a larger public company. Im wondering where you guys are on that path and when you hope to be there. We dont really have a time frame specifically for it. We made a lot of progress last year. Everything kind of grew strong double digits strategically. We were able to launch the beta version of our consumer ready housing site in august. Have terrific sellthrough rates on that. So were really focused on this 1. 8 trillion we did 8 billion last year in transactions and thats a big number. Compared to 1. 8 trillion, which is what the industry is, theres a lot of room to expand. The rest of the time lines will take care of themselves. We couldnt be happier with how 2015 ended and how 2016 is starting. All right, tim morse, thanks so much for joining us. Looks leak a flash back to three or four years ago. A brand change and a model shift at auction. Com, now 10x. Thanks so much. Up next, plenty more on volatility in china and what it means for Tech Companies and the overall company. Former u. S. Ambassador to china jon huntsman is going to be with us. Look at shares of etsy, slipping. Down about 50 in the last six months, down 8 today. Were back in just a moment. Today, were seeing new technologies make healthcare more personal with patientcentric, digital innovations; from selfmonitoring devices that can interpret personal data and enable targeted care, to Cloud Platforms that invite providers to collaborate with the patients they serve. Thats why over 90 of the top 25 Global Pharmaceutical Companies are turning to cognizant. Our domain experts, technologists, digital and data specialists, clinicians and scientists are transforming the way Clinical Research sites collaborate with pharmaceutical companies, and enhancing Patient Engagement with innovative platforms and solutions. Our populations growing healthcare needs present growing opportunities for our clients to advance the future of medicine with digital, and improve the quality of lives. Coming up on the halftime show, oil in china, which would be could cause a deeper correction for stocks . Plus, the big downgrabd for under armor today. And why is pfizer raising prices on more than 100 of the companys trucks . Well ask him about this when he joins us exclusively. Well see you in 15 minutes. Stocks in china closing at fouryear lows today, sliding yet again overnight. With continued signs that the worlds second largest economy may slide further in 2016 it now raises a high stakes geopolitical concern to face the next u. S. President. What should the u. S. Do about china . Are the candidates prepared for this . Who better to ask than former u. S. Ambassador to china, former utah governor jon huntsman, now cochair of no labels. Ambassador, its a pretty unique situation as chinas economy continues to evolve. The criticism now is theyre using an old playbook to play a new game. What would you say . Well theyre actually moving into new territory. With a relatively new playbook. Theyre using some of the tactics they used in years past. Theyre trying to get to a new destination. If you look at what was stated at the last Party Contest that took place last year and where shoe ji xi jeng ping is trying to take things. It seems that xi jinping always chooses an easy road out of it, which is to either subsidize, ton artificially support the currency and otherwise manipulate the marketplace. To say nothing of where commodities are and the overall sentiment around the region with nuclear bomb blast in north korea, et cetera. But things are going to have to smooth out at some point because we have the 17th Party Congress right around pardon me, the 19th Party Congress right around the corner in 2017 and xi jinping is going to want to show the world in the runup to the 19th Party Congress, which will be next year, that theyre solving problems, theyve imsplitted policies and practices that are sustainable, and durable, and you have to remember that his leadership is very much at stake here. So what should the u. S. Do in this situation . Because the marketplace, evolving as it is, still involves increasingly globalized companies, many u. S. Companies are very entrenked in the chinese market. Theyre watching a very volatile currency. Theyre trying to predict where it will go. Whats the u. S. role in this market right now . The u. S. Should do what it usually is good at doing. And that is articulating and proving that best practices and best standards for market openness, for regulation, ought to be in place in china. The problem is china catching up at the local provincial levels, to say nothing at the National Level, with where they had hoped to be at this point and certainly where they want to be in the future. Theyre behind from a regulatory standpoint. Their debt balances are well beyond what they thought they would be at this point. The stock markets both in shanghai and shongjon are both very poor. Their ability to communicate, their ability to regulate, trading. Early days right now. So getting them up to a higher standard is probably the best thing the United States could be doing right now. Ultimately, building out the network of trading relationships we have in the region under the Transpacific Partnership i think is probably the best safeguard in the region right now. Because the chinese will see this emerging and will want to speed up their own internal reform process. So theyre not left behind in terms of the nations were investing with and trading with and otherwise doing business with in the Asean Pacific region. We talk about the leaderships unwillingness to tolerate too much unrest. Were starting to hear about protests when it comes to layoffs in the phone production sector. I just wonder whether you think their sensitivity in that area has changed at all. Oh, i think theres huge sensitivity in this particular area. High unemployment always leads to political instability. When Economic Indicators get out of balance, i mean, we saw exactly what happened in the spring of 1989, in the runup to june, the Tiananmen Square massacre. You look at the Economic Indicators and the uncertainty of the people in china and the runup to that incident. People thought it was all about politics. Guess again, it wasnt all about politics. There was a good part of it that was about the economics prove lent at the time. Im guessing every morning xi jinping and the rest of the senior team, they look at the dash board indicators around unemployment, around inflation and other leading Economic Indicators, and theyll do whatever they can to manage those such that they wont get out of line because they know too many people who are unemployed or otherwise moving from the rural countryside into the city centers can create huge destabilizing forces within china. In some cases, those destabilizing forces cant be rolled back. Based on the road chinas on now, how its handling the shift to more of a consumption economy, what do you view as the worst Case Scenario for Global Markets over the next six months . Probably continuing down the track that we have seen over the last couple of weeks, where the you see the marketplace losing 10 of its value. A follow on to late last summer where there was 30 taken out of at least the shongjon markets specifically because the price earnings ratios were so out of whack. I think their believability in terms of where the reform agenda is going, all of these would spell bad news over the short term. As it relates to the fundamentals, that is the journey chinas taking from the old model to the consumption model, i dont really see a shift in that. I see some turbulence to their journey theyre now in the middle of, but ultimately theyll get to a consumption model where people are going to be buying more. Well have more in the way of export opportunities. Theyre going to have to promote greater things like innovation, entrepreneurship and domestic creativity in order to sustain that local consumption model. So longer term, i think were in better shape than what ive heard from some commentators. Short term, i think we can expect some choppiness in the market like weve seen the last two weeks. It will be a dilemma that faces the next president. Size up the republican field for us. Six candidates have signed the problem solving problem for no labels. What do you think the outcome will be . Were here in New Hampshire basically to recognize six of the candidates. The Bipartisan Group who has made the pledge. Were not endorsing. Were just here to recognize that they have embraced what we have promoted the last little while, which is once elected president , that youll actually work with the other side on some of the big issues that face this country. Everybody talks about solving entitlements, jobs agenda, energy selfsufficiency and balancing budgets, but then when they get there, theres no ability to manage those big issues through to fruition. What were doing during this election cycle, along with my cochair, is to say lets start early and the election cycle and get the candidates bought in to a process by which if elected president they will actually govern and get things done. Its not as much the what are you going to do but how are you going to get it done and how are you going to deliver these big things for American People . Were about to walk into the lunch with some of our no label supporters here in New Hampshire to recognize six of the candidates and i suspect there will be more who will want to take this Problem Solver pledge as well. We know we need to let you go but we appreciate some valuable insights on a topic so familiar to you as china. Ambassador jon huntsman joining us. Thank you. Coming up, star wars already Smashing Box Office records in china. Well put those numbers in context. My name is jamir dixon and im a locate and Mark Fieldman for pg e. Most people in the community recognize the blue trucks as pg e. My truck is something new. Its an 811 truck. When you call 811, i come out to your house and i mark out our gas lines and our electric lines to make sure that you dont hit them when youre digging. 811 is a free service. Im passionate about it because every time i go on the street i think about my own kids. Theyre the reason that i want to protect our community and our environment, and if me driving a that truck means that somebody gets to go home safer, then ill drive it every day of the week. Together, were building a better california. Star wars the force awakens now the third most commercially successful film in history. The film brought in a record breaking 53 million in its opening weekend. And the film proved such a success this weekend. Take a listen. The Disney Marketing machine is unparalleled to anyone. You cant walk into a mall in china, im told, without seeing star wars everywhere, not just in the big cities. I guess, you know, they lined up star wars troopers on the great wall as part of the publicity. And then i think theres imax itself, we did a lot of viral marketing that appeal to consumers and i think other the last month if you saw what we thought would happen a month ago to now, youd be very surprised, it just picked up a lot of traction the last couple weeks. The foersrce awakens is gain ground. Guys. You know what that means. Vaguely. Youre right on top of it. Now i feel like i can really get involved in the cultural conversation. We like that. When we come back with a value over 60 billion, uber has its sights set on a new kind of investor. Uber is reportedly nearing an investment that will take its valuation to 62. 5 billion. Tell him this funding will be carried out through Morgan StanleysHigh Net Worth network. Being offered 48 to 72 a share and today lift partner and chinese uber competitor shared that 1. 43 billion rides were completed in 2015 alone. 200 million just in december, guys. Well, that is a notable offering. We should also note a year ago Goldman Sachs offered 1. 6 billion in its own High Net Worth clients. Uners valuation was 35 billion. So unclear whos getting the better deal but at least for now it looks like goldman. Also reports today theyre cutting prices in 100 cities all around the world as the competition with lift might have gotten a little more interesting over the last couple weeks. Yes, it will be interesting to see how this affects the drivers who arent always that excited when uber cuts those rates. Meantime, dows going to waffle here and has all morning long. Currently up about 46 points. Well see what the afternoon brings. In the meantime, lets get over to headquarters, scott wapner and the half. Welcome to the halftime show. Joe terranova is here along with jim laventhal. Our game plan looks like this. Pharma bosses. Live and exclusive today on drug prices. Their mega deal. And what could happen next in the health care world. Call of the day. Why Morgan Stanley throwing some bigtime shade on under armor today and what it means to your money and that stocks future. We begin with the market. Stocks trying to reverse this years dreadful start. Not finding much traction however at this hour. The dow is