Good morning, what a friday morning. No lack of news today. Home sales, the biggest quarterly jump in history. Management changing for some of jeff bezoss and it is a 4 gain today. They added nearly half a trillion in the market cap this month. It is staggering, because apple right now is about 62 billion plus above the 2 princip trillion mark. That is like adding vm wear. That is your oef raj over the two tril mark. I dont know how history will judge that when skail has taken on new meaning im crashing my ahead because im not wrong, right it is remarkable but it raises questions about the breadth of this rally, right . We continue to see the big tech mega cap names push higher and investors saying can it continue, youre leaving a lot of names in the s p especially behind, karl. Thats right, something to watch as more and more people are looking for signs of a bubble now we have a piece that just crossed regarding facebook laying out contingency plans should the president try to delegitimatize the elections result mike, thank you for joining us this morning appreciate it very much. Thank you for having me walk us through what theyre telling us. I think basically facebook has not been wanting to do another repeat of 2016 which means getting caught off guard by different platforms and they have really been preparing for a type of scenario where they can get everything in order before the election. They have done that. And so over the past few months, especially as President Trump is making comments around the Postal Service, the legitimacy of the vote. Theyre saying were pretty prepared for the election how do we get through these afterwards especially as it is becoming more clear that it r wiwill not one and done Election Night. Like after Election Night it is over especially in the pandemic and mail in voting, it will probably take a few days or weeks to figure things off. So it has been a lot of Contingency Planning around the days and weeks afterward and the big question as we stay in the article, political advertising, should it continue to exist in the weeks afterwards they are still debating that right now. Yeah, you say in your piece they have started Holding Daily meetings about minimizing the use of the platform as a tool post election. They clearly decided that look they dont want to be an arbiter of truth mark doesnt want to get into whether or not trump can spout lies on the platform, or the democrats and what theyre spreading as well. One thing that has been very important to facebook is the idea of letting everyone vote and not disenfranchising voters. They have taken a hard line on the idea that if youre not practicing democracy, including letting people vote or talking about the results of the vote, that is a hard line in the sand that theyre willing to draw theyre considering taking down political ads. Are they appreciative or secretive about these moves . It seems to me like a kill switch would be more effective if the people that might be planning to exploit the platform didnt know it existed yeah, it has been a real open for the company for a couple weeks now. We have known about it i think it is always difficult i think they want to make claur they have good open lines of communication and they talk to them regularly about what is going on i think President Trump is bringing up ideas that could be seen as like, just really shaping the core of how voting occurs, how our democracy and participation from the republic exists how it has gotten into really asking some questions. And placing priorities internally around what is important. And zuckerberg, himself, is very aggressive on voting and being one of the highest priorities. The goal right now is to register people to vote true facebook that is what theyre pushing hey, mike, first of all, strong quarantine beard, i have to say second secondly, a kill switch. That sounds a lot it reminds me of when i lived in china and they still do this, of course. When they dont like what they see on tv or the internet they can hit a button and it all goes black. Im not saying this is the same, but im wondering if facebook is dam first degree they do or dammed if they dont will it add more fuel to extremist groups that say social media is trying to press their information . That is certainly fair. I think that theyre one of the biggest existential questions. What role do we play in allowing content to exist or not exist on the platform they made it clear they dont want to get down into the arguments of saying they should or shouldnt i think it has been about priorities for management and what they they basically had to step back and say what are our core beliefs what are the core things that facebook believes in that western democracy believes in especially when theyre drawing a line in the sand and basically china and republics that sort of exist in a way that we dont so last thing they want to do is seem like theyre going to bring down this big hammer or sensorship thing a censorship thing. Uber and lyft shutting down a service. They are avoiding classifying their employees for now. I dont know if you have a sense of how the Ballot Initiative might change the landscape and things i wonder we talked earlier, the fight will continue either way, wont it yeah, i mean it is so funny i was following this thing earlier this week and they were all around back in 2014 when uber was doing street fighting in new york, trying to stay on the road, and putting out push notifications, and they were wuling all of the same stops out this time. Especially lift. But they got a temporary reprieve that works for now. Is this this bat it will still on going is there progress they kick sick, if anything happens, if the employees classification is not the answer, is there another answer that has been making progress no, its a great question the thing that i had sort of believed, assumed, guessed might gain traction was a thing that uber and dara, and lyft keep pushing which is a third way, right . The idea that look, this new way of working is here to stay whether you like it or not that is what the ride and Delivery Companies say so rather than making them entirely employees, find a way to give them more types of benefits, more types of health protections. Maybe some advocates they keep pushing that i want to highlight you said street fighting. Uber is using aggressive tactics. I dont know about you think im thinking about flash backs he is taking a lot of the tactics that we saw from uber 1. 0. We know how that worked out. Is this the right strategy maybe, you know, maybe this is validation of soft and cuddley only works until it didnt they were threatening it has to be a value gags of how you pull the tactics, and it works. All right, mike, thank you. Meanwhile, the rally continues to be unstoppable now. Up 20 for the bont. Fill has more now. Good morning, carl. I was thinking back when this was right after the ipo. Now it is well above that. Now well above 2,000 and if you take a look at test la, keep in mind that shareholders will then participate in the stock split they trade on the split adjusted level on august 31st were going to show you this because it is astounding when you consider teslas market cap relative to the big three. If you added all of them up, tesla is still worth four times more than all of them combined four times more. That is just an indication of where tesla has gone in the last year the market cap is just exploded. Now up to 384 billion so what is the next potential catalyst battery day. That is when people will be focused on what elon musk has to say about driving down the cost of batteries and extending the range of the batteries they already lead in terms of battery costs. They are tracking the electric Vehicle Battery Market you see their tesla, by far, well below their competitors in terms of battery costs lets see what happens later in the quarter, as well the beginning of october in terms of vehicle deliveries. Will they stay on track for 500,000 being delivered this year these are two catalysts here something whacky and wild could happen in the next few weeks phil, well see how long apple continues to be worth about 5. 5 teslas that is a good point. Now a battle with major news organizations. Well explain next stay with us stress comfort. Three unique gummies for your unique needs. Find peace. Boost mood. Sleep well. Stress comfort comes naturally, only from natures bounty for skin as alive as you are. Dont settle for silver gold bond champion your skin cnbc, Digital Content next, which is asking for an improved deal Digital Content joining us more to talk about this good morning, good to have you good morning, thank you for having me. Getting interesting now after cooks testimony. Yeah, very simply, and there are concerns around the app store and how they favor the other scores, but congressman johnson asking a question and tim cook said they had a better deal and he said that anyone could have that better deal if they met the conditions. We have the two Largest Companies now on the planet that have a secret deal and we want to know what those conditions are do you think this was possible without the epic pushback was this inevitable either way . Were working on this letter once we heard the testimony. We are hearing emails from the Top Executive that runs the app store that were sent to jeff bezos. So we were curious about the conditions is teams to me that there used to be a platform for commerce themselves. I know all of the organizations that are rolled up into Digital Content next, but they give their product away for free, and now trying to create commerce around it. Does that make this era challenging for so many others yeah, we respect more than just News Companies and entertainment companies, and theyre all looking for what is the future Business Model. And there is a lot of significant antitrust questions for google and facebook, too everyone is looking to see can i go direct to the consumer. They are having substantial value and you are seeing the innovation around entertainment and news to go direct to consumer so the terms of those arrangements, especially for the most celebrated operating system out there, we need to understand what the terms are what do you see as being the necessary conditions, the rules of the road, to make it fair for organizations like the ones you represent to operate in Digital Commerce first, just being transparent. You have the Largest Companies on the plan wet a secret deal. So it will be a level playing field, let it be for the news industry trying to find its journalism, and epics games everyone should understand what those opportunities are and everyone should be able to negotiate them for those of us watching this step by step, what do you think the next significant incremental move will be i think there is there are investigations globally into these companies, particularly apple. You have a very significant antitrust investigation, and i think there will be more question thats will come out of that it is particularly focused on if youre a platform and you provide them, are you giving special terms to yourself or companys so were hearing about the end of that investigation. So the house judiciary will be putting out a report, as expected, in the next month or so and i think that will move the ball further down the road a Fascinating Development jason, thank you very much appreciate it. Take care, appreciate it. After the break, a key am zon executive stepping down again. We have the details coming up right here i keep working my y back to you, babe with a burning love inside yeah im working my way back to you, babe and the happiness that died i let it get away servicenow. The smarter way to workflow. Breaking news for the president trying to get a stay in that request for his tack records. A judge denied President Trumps request for a stay of an order that would require him to turn over his tax records to the manhattan district attorney. The d. A. Had been looking for eight years of tax records in an investigation over his business practices. Now the Trump Administration being denied that request to not hand over those tax records. This is important because President Trump said he has been willing to appeal this request all of the way to the Supreme Court if necessary for now it looks like the Trump Administration will have to hand over those documents back over to you Fascinating Developments lets get a news update. Sue herera has that for us back at hq. Here is what is happening at this hour, everyone. Steve ban nonwnon was smiling wh left prison last night he was stealing money from a we build the wall project. This morning on his podcast he is striking back im not going to back down. This is a political hit job. Everyone knows i love a fight. I was called honey badger for many years honey badger doesnt give. I am in this for the long haul im in it for the might. This was to intimidate people that want to talk the wall it is to stop and intimidate people that have President Trumps back on building the wall after 13 Straight Days without new cases, beijing residents are no longer required to wear masks outdoors most people on the street are still covering theirfaces saying they feel safer or feel social pressure to cover up. You are up to date, i will see you again ainn hour, squawk alley will continue after a quick break. Come on in, were open. All we do is hand you the bag. Simple. Done. We adapt and we change. You know, you just figure it out. Weve just been finding a way to keep on pushing. Uber and lyft about to continue to define their employees as independent contractors for now. Emil, good morning and thank you for being with us. You were formally known as travel palanicks right hand man during uber 1. 0. We were remarking how similar the tactics have felt to that uber 1. 0 when you were battling legislatures around the world. How were you dealing with that i disagree with mike completely i think what we did in 1. 0 is try to keep that legislation from ever happening by getting ahead of the argument and not trying to undo laws. But in terms of yesterday, the announcement, i think it was good for uber that they got a reprieve i dont think they were ready to employ the employment model. And the Ballot Initiative is do or die for the industry. It certainly kicked it down the road what do you think ubers leadership should have done. Should the battle have started earlier . Absolutely. The battle should have started earlier. When we had a battle in new york, when mayor deblasio tried to cap the number of uber cars, we prevented that legislation from happening and it stopped it but those tactics were, in some cases, successful to get you what you wanted but look at where it ultimately created. Travis was ousted, you had to leave as well, so is it a set back because of the ultimate outcome turning riders and drivers against them those are two separate things what the regulatory battle here is remember what were fighting for. The right for drivers to conduct their Economic Life the way they wanted the right for riders and suburbs and all of these places that didnt have access to Reliable Transportation to get it and theyre right. And theyre supported by huge swaths of the community. So the government was insensitive to the needs of their citizens that, i think, has nothing to do with any of the battles with the investors that are hurting uber, i think. I think my implication there was that they would be enrolling them in uber they say theyre drives, the majority of them, do not want to be treated as employees. That is right and this is done by a ride share guy. 70 of drivers do not want to be employees, they want to be independent contractors. So that has not changed. What do you think the core issue is here that legislatures are dealing with there is nail salon employees, journalists, you name it and that is, i think by my math that is ten Million People in california that are exempted so i think if california, instead of tackling the problem, they are just creating a law that would blanket exempt for the prefers professions that are lobbying them and they created a mess and they punted the can down the road. I wonder where you are in terms of how were thinking about Business Model purity. Earlier in their lives the argument was that lyft was more focused. Now it is multiple buckets on which to lean. Is that picture split for good yes, absolutely we knew this all along i think it was always the wrong narrative. You delegate power to the local leaders. The rideshare leader in new york was competing against a ride share leader for lyft. So i think the Business Model is superior they are more resilient overtime food delivery is a tougher business at this point to crack. How does uber win that field that diversification, yes, there are greater losses but there are great er deliver ability. So i am pretty optimistic about that at the same time they could, the food delivery business, could be facing more regulation. We spoke to the forecast da that hinted that more regulation for food delivery drivers could be coming i wonder, emil, what happens at the end of all of this what do you think that californians will vote and what does it mean for the gig economy . I think they will pass prop 22, if they dont we will see a negative spiral in massachusetts and some of the other states that have laws and approaches similar to the way california does i think uber has to win this and it covers food delivery drivers as well. It covers the exemption that uber is asking for, i think it is very important for them to win. If they dont youre talking about a real hit to the Business Model in the United States and that is someone in management needs to take responsibilit