Morgan brennan, jon fortt at post nine of the New York Stock Exchange record highs all around the board. Dow, s p 500, nasdaq, but well begin with news regarding ford forward looks to do apples to apples with tesla. Elon musk tweeting a response, quote, bring it on and calling into question the physics behind musks video of the tesla towing the ford f 150. Is this really where we are . My mom might be watching, i am going to keep it clean, this is a classic measuring contest if ever there was one. Morgan, do you know of any woman watching this tug of war with any kind of great interest mary barra is probably not even watching this. This is classic like testosterone driven man versus man type thing. The nerd truck narrative lives. The truck will be sold to nerds, right . Thats the niche product theyre aiming for i wont call it nerds, but if you look at the numbers, the number two, two top states for electric vehicle registrations, use that as a proxy for tesla, california and new york. The ford f 150 is the number one selling vehicle in the country in 46 states, 44 states. The only two states theyre not top are california, new york, a handful of east coast states this is not about whos going to win new customers. I am like ford, ford, ford. How could you surrender the narrative on trucks like this to tesla. Really like youre going to challenge elon musk on twitter lets be honest the guy built a big car. When you and i played video games in the 80s, that was the car that we played on. He wins. Done the fact were talking about it means he wins. And thats my point who even needs to spend money on advertising when you can have a twitter war back and forth, get all of the marketing you could want for the cybertruck and for the f 150. It is a cool car. Lets be honest. Is it it is cool looking. It is a truck that looks so much more fun than an f 150, right . I think it looks cool im not a pickup driver. I fall in the cool camp with this one in general, i am fascinated. I would like to see a legit tug of war between the two vehicles and the companies. We found our woman interested if friday was all about the form, when it is delivered, people will talk about the function, and it better function, otherwise it will be a very quick flash in the pan, dont you agree . That was all made up, the whole what do you think absolutely. Window breaking was made up. We asked that on friday very few takers on that theory. Thought you were talking about truck pulling was made up. We have seen truck pulling in commercials and yeah, thats made up. Even i do you think elon has issue throwing a ball at the car i think it doesnt matter because people are talking about it either way. Didnt matter if it worked they put out another video, throwing the ball, the window didnt crack it was fine. Because they talked about that, ford put tesla in trucks on an even Playing Field with ford, and i cant believe they did that it is insane. The fact that elon got this car truck to this level. You know why because he broke the window. Okay. Like a new term we can use, breaking the window. Slightly more serious subject, the second half of sasha b Sacha Baron Cohen is out in print form, calling for regulation, saying the Tech Companies are propaganda machines we heard a speech last week at the Antidefamation League last week we already have widespread outrage about social media. I dont think he moves the needle so much to me, this whole incident, it is like holding up a mirror. People see what they want to see. Casey newton pointed out that social media in fact helped create greater interest in the speech that he gave a week ago then the viral effect of social media got it to the point people wanted to read an oped from him, and the response on social media has been predictably chaotic. You want to see this as heres an example of the power of social media because it elevated his remarks, look at it that way. You want to say this is an example of the peril of social media, heres someone putting something thoughtful out online, and suddenly the response is a food fight, people are just going to it is just going to people are going to see what they want to see in it. The silicon six is actually silicon three . He is talking about facebook, google, and twitter. He names a bunch of different google units, he names alphabet, sergei, larry, names youtube and google most of it is google he has an issue with then picks twitter because of their he would argue reticence to withdraw white supremacist speech he argues they could do it much faster because theyre big and rich we know theyre not nearly as big and rich as facebook and alphabet are, but its an Interesting Group he picked. Yeah. I mean, i think that hes trying to make a broader point about social media silicon six rolls off the tongue were talking about it again in the context of what we were just talking about earlier. I dont think all social media are created equal, and perhaps cohen in an effort to make it a big tent perhaps didnt acknowledge discrepancies and nuances to twitter versus alphabet versus facebook theres a choice. You as social media user can choose to log out. So when sasha cohen makes a choice, like he is making a very clear choice why dont we all log out, turn off social media if you think thats the right choice . I think he is wrong. I think he actually thinks that like Mark Zuckerberg cares he doesnt care. He just wants pictures online. Thats his fiduciary role, expand engagement. No doubt about that. I dont think it is easy for everybody to turn off. Twitter has become a source of a megaphone for the president of the United States of america if you want to know what the president of the United States of america is saying or elon musk or any number of key figures you can say no. Im not going to tweet who, the president . Right but youre saying we as users should turn off. I cant turn off if i want to know what the president is saying kids unfortunately parents can say dont watch youtube videos, but it is hard to police that stuff, especially when everybody else in the class is talking about that youtube video. Fair comment. But you can choose to be on facebook you can choose to be on youtube. My kids choose to not be on those platforms. But theyre not. You cant. Right, i cant. But i think cohens point is not just about people that choose to be on the platform as a megaphone but those of us that have to consume that content as well well watch both those issues, tesla and facebook good to see you. Neil, stephanie. Larger than expected revenue decline sending shares of Hp Enterprise lower post earnings. That stock now down 9 , just about session lows joining us in a cnbc, hpe ceo. Good morning good morning, jon so i want to understand whats happening overall, you are talking about q1, fiscal q12020 being about flat, but then youre confident for the full fiscal year, revenue in Constant Currency will grow. Given all of the macro uncertainty, what gives you that confidence well, we just close a strong year for Hewlett Packard enterprise we had record growth, record free crash flow up 58 , and grew on all key indicators. Strong digits. One i am particularly pleased is momentum we have in the Service Model that grew 72 . That gives me Companies Based on the portfolio and innovation we brought to the market, demand we see for customers to drive that growth in a profitable way, based on the shift we made this year thats why i am confident about the future, about 2020 and beyond you mention services. I look at your units, hpe point next and Aruba Services were the stronger ones looking at year over year comparisons. I wonder is hardware overall Enterprise Hardware showing weakness heading into next year . I believe goldman a few weeks ago had warnings about that based on uncertainty are you seeing that weakness well, our units grew 2 in q4 we continue to drive Strong Service intensity which allow us to grow hp for next orders on the service side 1 year over year we grew the Aruba Services 18 in q4, and the Asset Service offer, we put a lot of emphasis, in a couple of weeks making announcement about the next generation grew 72 . So we see an acceleration the Services Component of this but the units grew 2 . For us, about placing the right unit with the right mix with the right service and intensity while we pivot business to the asset Service Model. Antonio, you talk about containerization, a big bet there. I hear a word like that, maybe because i covered freight the last couple of years, what does that entail, and how does it speak to the future, the bet youre making about where Enterprise Technology is going well, obviously we live in a cloud world and live in what we call a hybrid world where apps and data lives everywhere. More and more of apps and data moving to the edge the edge is where we live and work in order to operate, you have to have efficient set of application designs and deployment thats why we see the merges of containers in a micro services architectural. So you can use absent data efficiently back and forth where it makes more sense. Thats why containers are becoming a way for cloud and native applications. We put a lot of emphasis with announcements on the hp container platform which provides a true single pane of glass solution, move apps freely between on and off premises, all the way to the edge, and we brought together all of the intellectual property organic, in organic, so we can provide that very efficient model to customers and partners going forward. Longer term strategically, what do you view as your advantage in containers, google might argue that they sort of wrote the book on it, vmware will talk about it when they post earnings tonight. Why is hpe in good position to drive the containerization message . Well, hp is the age to Cloud Platform as a service company. Thats important to understand we can provide true end to End Experience for customers not just in the big cloud but to the edge our differentiation comes down to four things one is open. We believe customers will deploy multi cloud and stack solutions, not one single flavor of it. Two is the fact it is truly cloud native, using open source standards. We are deploying in this hp a true solution thats with hp technologies, the data aspect of this is super important. Three, the service, we have expertise on the service side to help customers find the right mix of whatever is they have with cloud journey they need to embrace, third and fourth, most important security we build security on the core of the platform we believe we have a very different strategy, that we can provide those experience from the edge to cloud, clideliver ua service in a true cloud open approach antonio neri with a sense of what drove earnings results. Stock down after earnings this morning, but the enterprise story continues to be told thanks for being with us thank you when we return, u. S. Army secretary ryan mccarthy. Dont go anywhere. Were back in two. It was sophies big day. By the way, shes the next mozart. As usual we were behind schedule. But sophies enthusiasm cannot be dampened. Not even by a runaway donut. We powered through it in our toyota prius. Because a stars got to shine, no matter what. Its unbelievable what you can do in the prius. Toyota lets go places. Some things are too important to do yourself. Get customized security with 24 7 monitoring from xfinity home. Awarded the best professionally installed system by cnet. Simple. Easy. Awesome. Call, click or visit a store today. Welcome back to squawk alley. The pentagon sounding the alarm about the stop gap spending bill, saying it could be dangerous for the military congress has until december 20th to meet a deadline for a new budget deal. Joining us to discuss, live from the pentagon, u. S. Army secretary ryan mccarthy. Mr. Secretary, thanks for joining us today. Thanks for having me, morgan. So lets start right there. The fact we are in another continuing resolution. How does that impact the army . Well, it has already effected the army, morgan we had over the last 45 days, we had to reduce our operations and maintenance expenditures by 2 at present, from a modernization standpoint, the buying power for commanders to conduct training dropped by 2 . Modernization front, we are unable to execute 70 new production programs, 79 new production programs and 37 production increases thats about 3. 5 billion of buying power in modernization sitting frozen now, even if the budget deal, the table is slapped before christmas, thats about 90 days that manufacturers are going on risk or have to wait until the funds are released so from a readiness, modernization standpoint, were losing momentum with every day that passes. We have seen defense spending increase the past couple years, certainly had a big impact on readiness efforts, also had a huge impact on aerospace and defense manufacturing. Given the fact this is what were talking about now, is military modernization in danger of stalling out . Well, we have been very blessed, the 18, 19 budget deal increased the armys defense line by 22 billion. We were able to increase readiness from two bringing add combat teams to north of 25 at the highest levels of readiness in twoandahalf years. A lot was funding but also focus from leadership. We have tremendous momentum. You look at the defense sector, they increased their research and Development Investments well north of 4 . When we started the effort, it was around inflation when you get industry excited, get them to invest in building prototypes, thats where you want to keep momentum going. Were working hard across the river to get a deal done before christmas. Got you i have to shift gears to another topic thats garnering news in recent days around the pentagon. Navy s. E. A. L. Review case in which the president got involved, ultimately Navy Secretary was fired. It does ripple out to the army, has impacts on the army, given that there is recent president ial pardons, review processes under way within your service as well, but also according to some experts raises bigger questions i want to read you a quote from richard dan zig, shawn okeefe, former Navy Secretary in New York Times this week. It is very much the navys business and even militarys business to maintain as the military so often recites and mr. Spencer put in his final letter to the president good order and discipline in conducting business, military services are not and must not be commanded in support of political ends as mr. Trump was apparently doing here. I want to get your response to that well, like all things, we have processes we need to go through, with respect to the navy, there were process files along the way, i dont have the specific Details Associated with that were trying to focus on going through deliberative processes to make the appropriate level of judgments and get our soldiers through the various transitions. And as you mentioned, across the pentagon there are very specific detailed processes in place, whether it is order and discipline you could also make the argument around contracting which has been in focus recently, given everything going on with the jedi contract award and now the recent bid protest by amazon how important are those processes to a service like the army being able to do business on a daily basis, and is there any risk they could be eroded . Like all of the contracts for large procurements in particular, Due Diligence is incredibly important to maintain the objectivity and selection. National security implications, massive implications to taxpayers. We are very judicious as we go about deliberate, at times, worked hard on Business Practices to make better and faster decisions to maintain speed of relevance with adversaries. I mentioned jedi, which is the big umbrella cloud contract for the dod overall. You talked about migrating Army Operations over to the cloud as well what do you envision for that strategy, how does it fit into the broader one for the Defense Department so the army initiated its cloud efforts in the last year laid in upwards of 800 million across the five year futures defense plan, so we can begin the inventory, the standards and protocol to migrate all of the data to a cloud architecture how it will fit in with the overall Enterprise Architecture within department of defense is something well work out over the next 24 months. While on the topic of tech, lawmakers raising the flag about tiktok, army use of the chinese platform, social media platform. How are you assessing risks there, how does it speak to how the army thinks about data the army ceased utilization of tiktok when it was brought to my attention reviewed with Cyber Command on potential vulnerabilities associated with the app and like many others, i will be receiving a brief from army Cyber Command around the Christmas Holiday lastly, have to ask about the new Marketing Campaign tight labor market has that impacted recruiting huge impact in fiscal 18, they missed by 6500 people, which is substantial. Feel those impacts the next couple years we went back, looked at how we are approached with the american public, and focusing on 22 cities changed advertising firms, changed leadership one thing in particular, all Army Senior Leaders are traveling the country, engaging with civic leaders, mayors, superintendent of schools, directors of park and recreation to get civil level engagement to get in touch with 17 to 24yearolds in the country and be able to compete better in that space 3. 6 unemployment has been very tough for us to recruit in this environment. So many more topics and initiat