Welcome back to squawk alley. Joining us as always, john ford. Joining us as well the cofounder of aol ventures. Good to see you this morning. Markets down 148. Simon brought you up to speed on the comments regarding oil and opec and would be Production Cuts. Well keep our eye on that. Bill gates breaking with tim cook in an interview with the financial times. Gates said quote this is a specific case where the government is asking for access to information. They are not asking for some general thing. They are asking for a particular case. Gates actually walked back some of those comments later in interview with the bbc in bloomberg saying he was disappointed with the headlines saying he was backing the fbi. He pushed for tech and government to strike a balance and additionally with charlie rose didnt answer it that plainly. This is right in your wheel house. Thats the general consensus view where you live and then your own view . Its a very thorny issue. You have zuckerberg, cook, dorsey on one side. Gates on the other side. You have a report saying that 51 of americans think they should. 38 think they shouldnt. 11 dont have an opinion yet and the request is narrow its a known terrorist and we want access to his phone but the problem is the solution is quite broad. Were talking about a back door system that has significant downstream privacy effects that make you susceptible to actors and other governments and there in is the challenge. So you believe the risk is broad despite that the fbi director says the legal case is quite narrow. Gates says this is one specific issue, but you think the risk is bigger than that. I agree that the request is narrow. I think the technological solution is significantly broadened. There in is the challenge. Theres no way to make the solution any more specific. Not that ive heard of. Certainly tim cook has gone on record as saying that is not the case and i think with every Technological Advancement we see the tug and pull. We then had the phone and email and i think these are healthy debates and we have done a pretty good job of november gating these unchartered waters and i think were at the point where we need to do that again right now. But theres been a growing divide between Silicon Valley and washington on privacy and security and we always wondered what would be the event that bridged the divide. What brought them back to the table to start figuring out what the solution would be after San Bernardino we thought maybe that would be the issue. Every expert came on our show and said this is going to bring tech back to the negotiating table on this but this morning on squawk box, the former director of the nsa and cia said we dont have clear enough heads yet. The pend you lumbar might swing too far in the other direction. How far do you have to get after an event to actually have a clear headed conversation about this . I think were actually starting to see that. If you look at tim cooks comments hes saying lets set up a president ial commission. Lets get thought leaders in on this issue and lets really wrestle with it but thats the forum where we will make progress. I dont think the fbi versus apple with all the subject activity involved there and the history and the almost at odds relationship is where were going to make progress. Interesting. We had former director hayden on this morning. He said this area is grey. Always has been grey and its not good versus wrong or right versus evil its privacy, security. Two virtues. And Technological Advancements and how the government needs to navigate the private sector advancements as time goes by. Well keep an eye on it. Its interesting to watch the conversation evolve even after one week. Shares of fitbit struggling today. Down about 14 earlier this morning after posting weaker than expected guidance for the current quarter. We talked to james park the ceo about that earlier on squawk on the street. Heres what he said. We try to give pretty conservative guidance to the street and look we had a record year and a record quarter. Three straight quarters where we have beat guidance which is fantastic. For us it was a great year for us and look the guidance that were giving for 2016 reflects the future confidence that we have in the business. So again here john were dealing with the market. Blistering growth if you believe idc numbers today but the promise of these new products keeps getting pushed back to later and later in the year. Where are you on wearables and fitbit specifically . I think they put up a great quarter that nearly doubled both revenue and units sold. So i think the guidance is that they got it coming out. This is more a timing and sequences issue. Its competition with apple. You have samsung and underarmour and fossil and so i think theyre executing well in a tough market. Actually if you look they lost. They had 33 market share at the end of q3 last year. Thats down to 22 . Investors just want to have their cake and eat it too though. They want to see that these Tech Companies are deploying their capital back into the business and innovating quickly enough but they also want them to be profitable and hit the numbers every single quarter and im wondering if you think that Companies Like fit bit and that are market leaders but still in relatively new markets are going to have a hard time serving both masters. They are. Theyre going to have to demonstrate in q1 and q2 that they can investment spend and launch new products that will ultimately gain market share in order to have the confidence from investors Going Forward but as a Young Company they havent shown that. Dominos pizza has a new app. You can order pizza on your watch. Are these things, i assume, where is the point at which these things are impractical on your wrist . I like the smart watch category. I have expensive watches at home that tell the time. I have an apple watch that tells the time and gives me notification and gives me additional information. I think thats a winning formula. We are in inning one or inning two of this but i like apples profits. They have the eco system and the app infrastructure and overtime that will be meaningful. We could get a refresh at this apple event on march 5th. Im wondering what you think apple could roll out for watch 2. 0 or 1. 5 as it may be that you would start to worry about fitbit and competition. The more apps the better. I love what theyre doing with the fashion. I think thats really important because watches are not only functional but theyre also fashion states so Additional Accessories are important and would make me feel good about it. More fashionable than you already are . Thats hard but my wife may disagree. It does feel like we are talking about apple and everybody else. Theres one player and then everybody else. Its probably the greatest company in the world and that is concerning for competitors in every category in which they play. John, always good to take your temperature on some of the stuff. Thanks for coming in. Pleasure. Plenty more headlines coming out of the mobile world. Congress and barcelona. John is there live. Its already been a busy week on day two. Hey, john. Hey, carl. Dig in a little deeper today into the themes behind the keynotes. Whats next for mobile. I talked to a number of ceos about exactly that. Check out that Simon Seagers the ceo of arm has to say about what comes after the smartphone. Smartphone growth rates have slowed down. Everybody has been expecting this for a long time. We still invest in our road map for mobile because every year theres new flag ship devices which require more and more processing. The cpu or gpu. Theyre trying to now use that technology in cars and Virtual Reality and so forth. Then Kurt Mcmaster is really trying to essentially hack android as give it new capabilities including using voice to Access Services or dial directly into skype. He says thats essential to moving things forward. Take a listen. The big thing is creating new experiences that the oems dont have today. So in a world of launching 15 new rectangles it just doesnt make sense. Consumers want services. They want new experiences. Ericson is focused on bringing the next generation as they are here at qualcomm. The next generation of fast wireless to people around the world. Thats 5g. Not clear how people are going to use it yet. What were seeing is an enormous interest from the larger carriers in the world. How fast it will develop. What type of use cases and thats why were also doing some of the tests with our carriers around the world. They need to understand already now what type of use case in industries. And then just a little bit earlier today i caught up with facebooks javier and when you look at facebook, whats app, instagram, they know how to grow in the mobile area like nobody else. He talked about the importance of retaining the users you already have if you want to grow. Its essential. You can only grocer viss that people like and enjoy and i think facebook addresses communication. Therefore i think im lucky to work in a product that people love and help growing it but it is essential that otherwise its hard to grow. You can grow it artificially but overtime its unsustainable. Now notice he didnt say the word twitter but the lesson for twitter is written all over that. We know that twitter has had Trouble Holding on to users. Its interesting that one of the things that twitter has to face up to is in the real time feed the more people sign up, the more cluttered it might get. Thats part of the reason why theyre moving toward algorithms. The big interview is coming up. In the meantime a quick check on the markets. We did have a Consumer Confidence mix and then raising doubts about a Production Cut and whether that would help the oil market from the oil minister in saudi arabia and oil has fallen by 4 and thats dragged the Broader Market along with it. The dow down 171 points back in correction territory. Meanwhile shares of home depot are in the green after beating on the top and bottom lines. The company also raising its dividend by 17 and that stock is up by just about 1 and shares of macys seeing a nice gain after earnings and revenue there topped estimates. Winter weather helped sales of seasonal clothes and accessories. They didnt get that weather until january but when they finally got it, it helped. Better late than never. When we come back an exclusive with the ceo of qualcomm. Plus plenty more on apples fight against the government. The former Deputy Director of the fbi is with us today. One more check of the markets. Down 173 is the low of the session. Back to 1922. Were back in a moment. Welcome back to squawk alley. Im john fort here in barcelona and im joined by the qualcomm ceo. You just signed on yet another licensee. This is something investors were concerned about. How do you feel about the pace of that and we saw samsung, thats a big one. I mean, we talked 12 days ago and since then we signed up lenovo. The top five in china. We add 80 licensees to those terms. On the 820, a lot of really important important devices announced at the show. Samsung, lg, coney and we have over 100 in the hopper so we feel like were building momentum. How much of a driver is 5g going to be for you given that were still waiting for china to move from lte to 4g. Is it two years away . Should we expect to wait a lot longer . Youll wait sometime but well be the leaders in 5g like we were in 3g and 4g. Were demonstrating in here off camera. Its in the hopper and were working on it and its going to be part of the solution at global scale. They have this goal as stated publicly to get to 25 share in the data center something tells me that youll be a real part of that. Should we expect to see a significant foothold by 2017 if its going to happen . We dont talk about our projections for the market but i will tell you that we also think that market is very interesting. Its going to build overtime. Its going to take a slow start for us to get there but we think its going to be an interesting market. One of the things that we heard from facebook here is the desire to get a lot more involved in how future Wireless Networks are actually structured. Is that a good thing for a player like facebook to get into the space where you also play . Any time someone strieing to help people get connected and to really balance this situation where people want more data than they have access to we support it. How are you going to engage with facebook in this process as they try to bring together technology, makers, carriers, et cetera. We already have a Good Relationship with facebook as we do with a lot of the other cloud providers worldwide and its a natural way that we would deal with partners interested in the same real end goal which is getting people connected to the internet. We have a lot of conversations here about the apple versus fbi controversy. Lots of people speaking out in various sides of it. Where do you stand in because security is important even at the chip level when it comes to how you look at mobile and how you architect it. In many respects we dont have a dog in the hunt. We provide technology into people that are more relevant to ask that question too but that being said we do a lot to secure the product and make sure that people have confidence in it and privacy very very important but for us were really one step removed from the big debate that you hear in the press. That must be a comfortable place to be. Finally emerging markets, any interesting insights that youre taking away on what needs to be Done Technology wise at that level where theres still a lot of growth. We talk about how the phone is this Remote Control for your life and theres a lot of other devices that come around it. We talked about that for several years. Certainly thats happening in mobile world congress. If you looked at lgs announcement about friends that are associated with your phone its very important but controls a lot of accessories. Thats a great trend. Youll see more of it. Always great to see you. Halfway around the world. Back to you guys in new york. Up next, four square launching a new product that it says can tell whether an ad is actually driving foot traffic to stores. Theyll join us to explain and another quick check on the markets. Dow is off the lows but down 170 points. Squawk alley will be back in a moment. We built our factories here because of a huge natural resource. Not the land. The water. Or power sources. Its the people. American workers. They build worldclass products. And that builds communities. And a better future. For all of us. Because making something in america means so much, to so many. Weathertech. Proudly made in america. Hey, carl, yeah, you know, listen i was very surprised because the saudi arabia juan oil minister giving a speech and i thought it was going to be blah blah oil and he wasnt going to say anything. Couldnt have been further from the truth. He made very direct comments about Production Cuts basically telling everybody in the room which is pretty much the entire global oil market, by the way, there will be no Production Cuts. He effectively said we cant have cuts because some countries will cheat. He didnt name iran but you kind of had the nuisance there. We cant have cuts because theres no trust. Thats exactly what he said so i think the no cuts which he said by the way about ten times moving the oil market down. Moving the stock market down, carl. He also noted that saudi arabia is not at war with u. S. Shale. Any company or any specific country but his very firm and clear comments about no Production Cuts addressing a frees. Thats what moving the oil market down. Thats why the entire stock market turned down so making some pretty strong headlines here. And leaving very little to the imagination. I know youll have a lot more from houston with a lot of energy ceos. I imagine they have a lot to say about that. Well check in with you in a little bit. Whether its beyonce singing about red lobster, expensive super bowl ads or donald trump calling for a company, foursquare can announce if theyre actually impacting retail. How does it work . So we cant play the beyonce red lobster mention because its not safe for even cable but does Something Like that actually help red lobster or retail . It tremendously helps. Red lobster should be thanking beyonce because weve seen significant traffic increases since the super bowl. The week after the super bowl we saw a 12 increase in foot traffic to red lobster. So she works. How does foot traffic translate into sales or is it just the traffic that youre gauging . We look at foot traffic but places like red lobster youre not window shopping. Youre going in there and eating food and thats going to translate into real dollars for them. Whats the data that youre gleaning this from . Foursquares has the largest Location Intelligence Company and largest foot traffic panel. So we see foot traffic trends and panels all over the world looking at all sorts of different use cases. How much data are you collecting day on day, for whom, and how much are they paying on this . In general were a Technology Company and we look at a tremendous amount of data every single day from our Consumer Base in an aggregate basis so were looking at different trends but were looking now with our new product to see how adds actually drive store traffic. Do ads work and are they actually driving people into the store to purchase. So this data is being bought by by brands and marketers. Theyre going to be using, you know, just like they buy television theyll be look at this for digital. And generally how soon after a campaign can you start to tell whether or not its moving traffic or not . A day . Hours. Real time. Its real time. We can see based on foot traffic patterns that we see, real time. We dont have to wait weeks or months to look at the impact in results. Is it the companies coming to you and saying can you measure this for me . How do you decide what to measure . Theres 200 billion spent in the u. S. On advertising and 60 billion on digital. Marketers want to suns the money theyre spending actually working. Does it work beyond just a click . Does it create an roi for them and you have never been able to do this before to measure the digital to instore so were helping them figure that out. Theres a lot of Musical Artists that mention a lot of brands in a lot of songs and i imagine you dont have enough time in the day to chase down all of them. Sure, theres always various different factors that go in place but beyonce, she works. Starbucks changed their reward program this week. Instead of going from visits now its basically based on how much cash you spend. Can you tell how long someone spends in a retail space for example and imply how much theyre spending and not just whether theyre there . We know when the phones stop and detect it. We have technology that understands if a phone is at a place, at a store. We wont count how long its at a store but we will be able to see the impact of our starbucks customers. Are they happy with the changes or are they not . And well be able to look at the trends to see that impact. You used to run advertising at apple. We would be remiss to not talk about the debate that has just become larger than life between apple and the fbi. Its not something that cut across party lines, industry lines even within the tech industry. As a former employee im wondering how you look at this coming down. Apple is a Great Company and i had a great experience working there and i launched a product for them but this issue has gotten points higher l gott gotten politicized and creating back doors to something that could get in the hands of the wrong people is dangerous and aztec nolg companies the things that we do focus on is privacy and trust because theres a lot of data being shared and we have to be responsible about it. Are you surprised to see voices like bill gates coming down in favor of tech responding directly to a specific order and not having a blanket policy of not doing this . This is porn and obviously a very big issue right now and im not surprised but i also think the result of this is going to set precedent for how things are going to ward. Well see what ultimately, what happens. We appreciate you coming in this morning. Thanks for having me. Europe is going to close in just about 30 seconds. Simon is back at post 9. Not looking too clever as you can see. A lot deeper red than we had say an hour ago. Its a broader based decline than we had and a lot of that has to do with oil and these comments from iran but saudi as well which hit the price of oil. That means the oil majors have died. The Oil Services Stocks are also negative. Bp for example is down and theyre falling into the close. The basic resource stocks were weaker anyway. Of course after bhp cut the dividend but they have taken a further leg down despite the fact that many of the metals are not looking worse. It may be on expectations of where we go with the dollar. On the subject of growth and central banks, and the euro was under pressure earlier but thats reversed in this environment but the big news out of germany is that the survey of sentiment, the expectation component of that is really taking another jolt downwards. Its the second month that its declined substantially. Now down 5 points on the index. Its not the domestic economy thats the problem. Its the exports for all the reasons that we talk about and you had the final gdp figure come through at 1. 1 at an annualized rate. That reignited the talk about what the ecb might do march 10 or the belief that it will do enough which others are suggesting it wont. Lead the euro lower. One currency that is down and continues to be down is the british pound. Yesterday on all the talk of brexit after the london mayer announced he would join the out campaign and then you have mark carney stone walling the idea that the next move in u. K. Interest rates is going to be higher. We might not get a rate right for two or three years. He really dodged the questions and spoke about the need for the u. K. To stand ready to do more on the negative side or the dovish side if you like. So the bank of england appears on this performance before the select committee today to have turned further dovish. If youre watching banks and Interest Rates around the world. Back to you. We were hoping we would get your insight on this one yesterday simon. Nice to have you back. When we return a lot more on apples fight against the federal government with the former Deputy Director of the fbi. Stocks still struggling after the comments from the Saudi Oil Minister as were down to 1923 on the s p. Were back in a moment. I think it landed last tuesday. One second its there. Then, woosh, its gone. I swear i saw it swallow seven people. Seven. I just wish one of those people could have been mrs. Johnson. [dog bark] trust me, were dealing with a higher intelligence here. The allnew audi q7 is here. Here at the Td Ameritrade they work all the time. Sup jj, working hard . Working 24 7 on mobile trader, rated 1 trading app on the app store. It lets you trade stocks, options, futures. Even advanced orders. And it offers more charts than a lot of other competitors do on desktop. You work so late. I guess you dont see your family very much . I see them all the time. Did you finish your derivatives pricing model, honey . Td ameritrade. President obama unveiling his plan to close the u. S. Detention center saying despite the political hurdles he is making one last effort to shutdown the controversial facility. The plan were submitting today is not only the right thing to do for our security but it will also save money. The Defense Department estimates this plan compared to keeping guantanamo open would lower costs by up to 85 million a year. U. S. And south korean officials meeting in seoul amid heightened tensions regarding north koreas rocket launch this month. Representatives from afghanistan, china, pakistan and the u. S. Are meeting in kabul for a fourth round of discussions to end the war in afghanistan. Theyre likely to set a date for the first direct talks between the Afghan Government and the taliban. A warm homecoming for john rigas. A judge ordered his Early Release from federal prison because he is dying of cancer. Rigas has been serving a 12 Year Prison Sentence for fraud that lead to the collapse. And that is the cnbc news update this hour. Lets get back downtown to squawk alley. Sue, thank you very much. Back to the high stakes fight between apple and the fbi and access to that locked and encrypted phone used by one of the San Bernardino shooters. Bill gates weighing in on the issue and seemingly backing the fbi. Take a listen to this. Well the courts are going to rule and it will be good to have that precedent. I think people want the government to act on their behalf if they feel like the safe guards are there. Gates would be add odds with a number of other tech ceos that backed apples position. Joining us is the former fbi Deputy Director tim murphy. Its great to have you with us. Good morning, thanks for having me. You want to add your voice to the conversation . What is your take . Yeah. Look. Its great that someone of bill gates stature comes out and tries to give a balanced perspective of it. I love apple products. I have the apple products in my house. I love the encryptions. All of our communications should be encrypted whether its the government or Public Sector or personal information. This is a different case when were talking about balancing the privacy which we all love and i love personally with the security issue. Here you have a case of an individual, right, that the phone is not even his. The phone is the county phone. He is deceased. Really his privacy rights really arent there anymore and he killed 14 people. I mean, you know, where have we gotten in this country that we cant have an assist. The fbi is not asking for description tools or to decrypt that phone for information. Theyre only asking for access to it which apple does have the capability to be able to do. So i think look, in this case, you know, i think the fbi is going to come down on the right side of this. I think the courts are going to rule in this case, specifically this case, were not creating back doors and its probably good for the security of this country for apple to be able to give access and help these agency dos what they need to do. Is there anything more than the fbi or courts could do to build the assurance in the tech space that this issue would be as narrow as its being layed out . Are there any insurances or anymore the fbi can do to protect that software if its created. They threaded the needle on this. This isnt something new. Its something discussed on the previous director and previous administrations. Its been talked about for ten years and people could foresee this coming and now that its here the fbi threaded the needle. Theyre not asking for apple to give up their encryption codes and have a master key. I think what the court could do and maybe theres some type of mediation thats done where the Court Oversees this process. In other words the bureau is asking that apple do this in their own space with their own engineers and technology and then destroy it. Maybe the middle ground is to make sure that that happens. Someone is actually put in there by the court to oversee this. Now all the hysteria about it getting out and everybody is going to have access to the hundreds of millions of iphones out there is a lot of rhetoric and noise because you can do this in the confines of a clean room with their technology and with their technicians. Hand that phone back over to the fbi and let them do what they need to do to get the information. Theyre only asking for access to the phones. Why cant the fbi do this themselves . Were going to continue to see that. The laws, technology on the government side hasnt kept pace with the private side. Theyre not doing as good of a job on the Cyber Security side so at this point i would go to assume that the fbi and other agencies in the federal government dont have the Technical Capability and could be due to a code that apple has that they cant bypass the code or pin and worry about those ten times that they fail and everything is erased and i think they want to air on the side of caution that says if they have this capability and they can pound against the phone Technology Wise over and over theyll be able to get in there and see whats in there for that month and a half that they dont have visibility. We now have the District Attorney in new york saying his office has 175 phones that are in their hands that they cant unlock either and im wondering what you think will keep some of these Law Enforcement units from knocking down apples door to do something similar again. You know i think theyll certainly try. Thats their mission. They need to do that for the victim of these crimes and also to put better cases together. To make sure that people pay the price for committing whatever crimes using those devices but i would separate you have to separate the issue. Theyre saying theyre going to be bombarded with these requests. These requests are already there. Some of them are already working through the court systems. Apple has assisted in many different cases. Its just unusual to me and i dont quite understand why they drew the line at this case, because i think they will lose this case specifically. They might have been better off drawing the line on some other cases but you just, im sure that you talked about today the research that shows even the public at 5138 says they need to give up the access to their phones so the fbi can figure out whats on that phone to make sure that we continue to keep us safe. So i would separate. I think we need new legislation. You need laws and precedent and that will govern all the other th hundreds of cases out there moving through the system. Well see if the Public Opinion starts to weigh on apples stance for the fbi. Tim we hope you come back. Tim murphy, former Deputy Director at the fbi. Stocks are still in the red. The dow is down 158 points. Rick what are you watching today . You know, earlier in the session, 10 year note yields were above 180. Then they traded down to around 171, 172. Why did that happen . Were going to tell you why and were going to talk about day trading with machines. After the break. Coming up on the halftime show very Surprising New information on how much exposure the banks have to the crude crush and jp morgan is front and center today. How concerned investors should really be. Plus exclusive interview with the ceo of sun core and Goldman Sachs head of commodities and well debate chipotle, fitby the. Another sign of the stalled ipo market. Theyre officially postponing the ipo. It was scheduled to go public last month. A sign of the times there. Lets check in with Rick Santelli and get the santelli exchange. The machines have changed the world in so many ways and its not for me to address whether thats an improvement or not an improvement. It is what it is. Theres the context of the marketplace which really show cases how traders interact with the machines. So lets look at context and a couple of barclays charts, shall we . Lets look at the barclays index. Its a five year chart in Investment Grade corporates. Even though we have seen improvement in the etf side and price side, these are elevated spreads. Look at them in the context of the last time we saw widening in 20112012. Lets look at the five year high yield. Well over 800 basis points now. Same dynamic as the Investment Grade so the context is a nervous market even though there have been improvements these r barometers are at elevated levels. Lets look at another issue we need to be cognizant of. Im talking about day trading Interest Rates. Lets look starting in the spring of 2014 just so you can clearly see what we talked about over the last several santelli exchanges. A nice Double Bottom in the mid 160s. Now the next chart is the s p 500 today against ten year note yields and as i talked about in the tease, ten year note yields were above 180 and we only had one settlement above 180 and we broke close to 10 basis points. As you can see the s ps are clearly leading the market. Whats the point . The point is we have a nervous marketplace as shown by the barclays two charts. We have support in the mid 160s. We have the machines for the most part that are looking for relationships. We know that. Just look at oil and stocks. These are relentless in a positive sort of way. Because when they find something that you can put in an algorithm that works, a relationship. They will sink into it until it isnt making profits anymore. What they do is they watch if the equities in a nervous state look like theyre going to give up some ground and buy treasuries. That was real for a day trade and the important safety tip is most likely the machine positions are going to be shortterm in nature so if our theory is right for the next several sessions where stocks are down watch how they move lower and especially watch how they trade in the middle toward the end of the day and whether they come back or not. Carl, back to you. Thank you very much. When we come back well talk to musician creating his own Business Model in the face of new industry norms. Charlie morris up after the break when squawk alley continues. With a few music mega stars pushing the music streaming currents by choosing one platform or another where does that leave other musicians when it comes to making music and adapting to the changing landscape or in other words just making money . Charlie joins us now from nashville and when we hear artists say theyre making the economics of the Music Industry work for them it means that theyre also waiting tables on the side. How did you do it . Really its always been an ever evolving business and so if youre not capable of flying by the seat of your pants youll get left behind. I always felt the need to adapt as time has progressed. So you know the mountain of changes that have gone on since the early 2000s have been a little bit more than before but ive always been used to having to adapt. How did i do it . I dont know. I had a few songs that people liked and it allowed me not to have to work at the coffee shop. You have gone to a couple not so traditional routes. You have chosen to sell a lot of your songs to Television Shows which allows you to earn a little bit more money than simply streaming them. At what point did you say this is unsustainable. I have to figure something out. When the money started to run out. There were still major labels around and that model still worked for a lot of people and it worked for me and it was nice having that kind of support and that kind of Financial Support and manpower but as the bottom line shrunk and Digital Technology crept in and started to take the place of, you know, having physical albums to sell, the bottom line shrunk so much that everybody had to make changes. A lot of people lost their jobs and, you know, i was able to write my own songs and perform those songs live and i could drive myself around in a vehicle and sell my own cds at the end of the night so the people that used to do that had to find new jobs and i just had to wear many hats. More hats than i might want to but i loved the job. So i do what i have to. Im thinking back to the grammys a few days ago where the Recording Academy president tried to shame the streaming services into paying musicians more. Is the industry counting on public pressure to bring these royalties higher do you think . I think ultimately its going to come down to the artists because the artists are the ones creating the content and if theyre dissatisfied with the streaming model then theyre going to have to get together and use their voice to do something about it otherwise, major corporations are going to continue to act with a certain amount of liberty as far as how it goes. They do seem to have a subtle way of taking over and the business totally changed. For me it happened in a subtle way where one day i was selling cds to people at shows and people were buying them in stores and over a very short period of time all of a sudden that went away and everyone could just log on to one thing and listen to whatever music they wanted to. So how is it all going to shake out . I dont know. But i do know that you dont when you have a song that gets played a lot of times on the streaming services it doesnt lend itself to enough money to live off of. Youre going to end up on the Street Corner or coffee shop. Fractions of pennies is what they say but you certainly found a way charlie to find your fans in new places. So best of luck to you. Well keep listening. Thank you. Charlie mars here on squawk alley. Fascinating. When we come back, chase announcing this deal to expand mobile payments. More on that in a moment. Im only in my 60s. Ive got a nice long life ahead. Big plans. So when i found out medicare doesnt pay all my medical expenses, i looked at my options. Then i got a Medicare Supplement insurance plan. [ male announcer ] if youre eligible for medicare, you may know it only covers about 80 of your part b medical expenses. The rest is up to you. Call now and find out about an aarp Medicare Supplement insurance plan, insured by unitedhealthcare insurance company. 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Remember, all Medicare Supplement insurance plans help cover what medicare doesnt pay. And could save you in outofpocket medical costs. Call now to request your free decision guide. And learn more about the kinds of plans that will be here for you now and down the road. I have a lifetime of experience. So i know how important that is. The banks investor day presentation, the company revealing partnerships with starbucks and a fourth coming retail platform for Merchant Exchange or mcx. It also plans to unveil later this year a new peer to peer payment platform with six banks the bank says active mobile users up 20 last year. Customers visit the app 57 times a quarter as part of the 9 billion tech budget this year. Part of that is a beta test for some big clients but theyre trying to fight Silicon Valley on multiple fronts. Were you surprised by the results . No, i think jp morgan does a great job of giving more detail than necessary to establish confidence. Key issue to watch for all the financials Going Forward. Meantime lets get back to headquaters. Scott and the half. Carl, thanks so much. Welcome to the halftime show. Lets meet our starting lineup for today. Joe is here along with stephanie and pete and with us for the hour is christine short commodities crush. Two exclusive interviews this hour. Sun cores ceo on how his company is coping and jeff curry on where we can go from here. Why one firm says chipotle is a sell now. Do our