Jon and kayla. Kale aa having just interviewed john stone ed lee joins us as well, managing editor of re code. Busy day. Markets getting a little volatility. Were getting auto sales all through the morning. Right now we have breaking news from toyota. Phil lebeau has that in chicago. Phil. Carl, tale of two automakers. Lets start first with toyota. An increase in november auto sales. Well above expectations. Up 12. 4 . The edmonds. Com estimate was for an increase of 4. 9 . The best black friday sales in eight years for toyota. Thats what was driving strong numbers last month. Meanwhile, weve also gotten a peek at what november was like for volkswagen. We knew it would be bad, but im not sure people were expecting it to be this bad. Sales plunged 24 last month. More than double what most people were expecting in terms of a decline. What was driving it . A drop in pasat sales. Up more than 60 . All of this tied into the stop sale order on those tdi diesel vehicles. Those versions of those vehicles. Carl, one last thing. A lot of people have said, look, youve got these vehicles. Cant you throw more cash on the hood and sell whats in the showroom at volkswagen . Well, if you dont have vehicles to sell, you cant put out greater incentives. There comes a point where you are going to start to see sales drop, and thats what we are seeing with volkswagen. Stunning numbers from vw. An interesting number all through the day. Phil, thank you for that. Our phil lebeau in chicago. Next up, a record day for Online Shopping. Adobe is now projecting that cyber monday sales just shy of 3 billion. Thats up 12 yearonyear making it the Largest Online sales day in 2015. Walmart says 70 now of its online traffic coming from smartphones and tablets. Meantime, am sflons the record weekend for its devices, sales up more than three times yearonyear. However, according to idc worldwide, tablet sales are down over 8 versus 2014. The category has been troubled of late. Pretty encouraging news on cyber monday overall. It is. I think its more encouraging that it might seem on its face, of course, yesterday we had the ceo of fanatics, the sports retailer, saying that his audience over indexes toward mobile, more than 60 of buyers there were on mobile devices. The retailer that is are able to figure that out and get a bigger basket, a bigger share of wallet from that growth consumer on mobile is doing better than that 12 . I also think its more than just about the Sales Numbers here. Its got to be about loyalty. I mean, just because you can sell something for cheap doesnt mean theres going to be margin in that for you. Are you able to pull out what amazon has been able to pull off so far with prime . Getting people to be just predisposed to buy from you. To get that reflex action. I need something . Oh, ill go to i mean, typically people say amazon now, but others are trying to get into that space. If a retailer doesnt get their act together on mobile, no one is going to buy them. Youre going to end up on amazon by default. Interesting to watch target where heed. Inaccessible for much of the day, although target now saying that their volume was two times the previous record. I mean, how do you model for that kind of stuff . Theyre actually because Online Shopping is such part of the mainstay in terms of how people shop altogether, target was throttling their traffic online, which means they were slowing it down so not everyone can get in. They had really good deals. Its equivalent to having a line at the door. Right . They need to basically staff up for that the way they would staff nup a retail store now. I think thats another element to Online Shopping a lot of retailers have yet to figure out. The one thing that were not traffic was up three times, and how do you account for returns . People will take advantage of the very steep discounts, order things just as a hedge just in case they dont get their shopping done at another time. Perhaps it comes, and it doesnt meet the description. Its not exactly what they wanted or they find a better deal. Then they return it to the retail store. Were seeing a lot more of that happen, and you wont really know until the end of the season how much of that activity actually takes place on the back end. Interesting. Well watch that, of course, as we head even deeper into the holiday season. Next up, fidelity made headlines a few weeks ago after marking down the estimated value of its stake at snap chat by 25 . You probably remember that. It appears fidelity now changing its tune. A new report from fortune finds that after that markdown fidelity marked back up the value of its snap chat shares by nearly 15 . Fidelity also upped the value of other startups like drop box and roku. This is really hard stuff to do, jon, to know exactly what these are worth at any given moment. Now you have the issues of the fidelitities of the world marking you down and up. You have to conserve cash in this environment because there are all these other pressures on investors. It makes me wonder if were going to see more Companies Going public because its not as safe to be private as it used to be. Or as, you know, its not just a matter of public versus private, but what kind of money are you taking . You know, if you are going to take investment from fidelity, you have to understand, well, theyre going to have some public statements about their investments. Its going to force you to think about going public earlier, and they want more visibility into your company. Otherwise, you have weird, wonky reports about what the value of their statement is. Even though the markdown, the markup, we still dont have a lot of visibility into the businesses themselves despite these statements. No, and traditionally we wouldnt get that sort of thing, carl. The investors are provided with that, albeit limited, as part of their disclosure when theyre considering investing, and they get regular quarterly reports. Its important to note that there is a corporate governance, and thats a chinese wall thats between the Portfolio Manager and a committee that is responseible for remarking these private investments. That assures that perhaps wills contra fund which 111 billion under management, he made comments to reuters that he will be more cautious about investing against unicorns that he is not vul valuing the companies differently against another company at fidelity. It is interesting to see. I think its ultimately a good thing that these companies who will eventually become public get a taste of the public market. They want to eventually woo a company and investor like fidelity. Theyre going to have to deal with a little bit of volatility in the meantime. Yeah. Welcome to the club. Apple would include headphones that plug into the charger. More people could use wlu tooth headphones. People dont know him as well as tim cook, but he was as powerful as you can get at samsung. Very powerful at samsung. Not quite chairman level powerful, but heeshz the guy who preceded over the era in which people said that samsung copied am. Certainly the era in which samsung brought out the bigger screen phone that apple eventually copied. Many would argue. Right now theyre on the rebound. In a way its higher volumes of cheaper phones. It will be interesting to see if they can defend that because they have the components business. What do we get in return for giving that up . Is it going to be worth it . If they fumble that, its a huge miss. Everybody understands a headphone jack. Its been around longer than ive been alive. Whatever they end up going with it, it better get adoption. Otherwise, its another flop. Have we reached peak thinness. This could take it down by almost a millimeter, i understand it, according this blog post. Apple is always going to try to get it thinner, and i think its partly an exercise in engineering and design creativity. Once you have it thinner, you have choices. You can make the battery bigger if you decide to, which they just did with the ipad. Can you do so many different things. If you stop trying to shrink the space that something goes into in technology in chips, in anything, you start to lose out. Now, there is a danger here. Again, its what do you get for the thinness. It cant just be thin for thin sake. It will be a piece of paper with all of this. Lets check in on the markets right now. The dow up 116. We were up yum getting a nice upgrade. Firm says the coming spinoff of china will focus optimism against the perform wrans of taco bell. Well watch that. Meantime, a news alert from capitol hill today. We go to eamon javers in washington for that. What were monitoring is a press event from senators widen and grassley. Announcing the results of their 18month investigation into Gilead Sciences, and the marketing and pricing around their hepatitis c drug. The company ultimately priced that drug at 1,000 per pill. The members of congress in their preprepared statements, wrovl, you can see the event hachkt started yet, but the members of Congress Calling that a controversial decision and saying that ultimately it cost medicine carry and medicaid a lot of money to market this hepatitis c drug. S as a result of these pricing decisions by gilead, ultimately a lot of patients were not able to get access to this drug. Heres from the prepared statement from ron widen saying gilead pursued a calculated scheme for price and marketing its hepatitis c drug based on one primary goal. Maximizing revenue regardless of the human consequences. Gilead knew these prices would put treatment out of the reach of millions and cause extraordinary problems for medicare and medicaid, but still the company went ahead. Now, carl, no one is going to be surprised to know that a Pharmaceutical Company got the highest possible price it thought it could get for its drugs here. Weve reached tout the company to ask for their comments. Well bring it to you as soon as we have that. Meanwhile, well monitor this press event for new details from this investigation. Carl. All right. An issue thats definitely creeping into the political cycle. Thank you very much. Thats right. When we come back, according to four square, about a quarter of black friday shopping actually happened on thanksgiving day. Ceo Dennis Crowley will join us with a full roundup. Plus, putting the alpha in alphabet. A top analyst makes the bull case for googles parent company. And victorious in this first hearing on his Mental Health, but the fight still has a long way to go. What happens next, and what that means for redstone and viacom when squawk alley continues in a moment. Getting breaking news. Lets get to sue herrera who is back at hq. Sue. Carl, we are monitoring a still developing story out of istanbul. There are wlikting reports right now whether or not an explosion at an istanbul metro station was the result of a transformer or whether it was the result of a bomb. Turkeys private ntv television says that the explosion at the istanbul metro station has caused some injuries and the staterun agency is now saying the explosion occurred at an overpass near the metro station. Not in the station. It remains to be seen at this point whether or not the explosion was at the metro station itself or slightly above it at an overpass. There is one report of a death and one report of an injury. It is unleer at this point whether or not this is a transformer explosion or whether or not it was a bomb, so its unclear as to whether it is a terrorist incident at this point. However, we are monitoring what is still a developing situation in istanbul. The entire metro system has been shut down at this point. We will keep you posted. John, ill turn it back to you. An important development, sue. Thanks for keeping us posted. Moving on, shares of alphabet are up today. A couple percent. Our next guest says alphabets share price could reach 1,000 a share. Lets bring in mark mahaney, Senior Analyst at rbc capital markets. Good morning, mark. I notice from your note that you say that the clarity around the profitability of alphabets core business, google, is going to really help these shares, but why isnt the inverse true . Where isnt it true that investors will get a look at how much google is spending on all the other things that arent as profitable and get down to the dumps about it . So i think both things are important, john. The reason that weve identified this, this new segment reporting, is the most identifiable near term catalyst, positive catalyst, in the internet space is that you are going to get greater disclosure. Well see how profitable the core Google Business is, and finally most importantly in terms of valuation, people will be able to do a sum of the parts, take a sum of the parts approach to the stock. If you do that, you will get the discount that the shares provide today. Whats the biggest risk . The biggest one that i see to going the to amazon and facebook. Amazon, if im looking to buy something facebook. Google cant access to that data to get smarter. How long before we know whether those two forces in particular are a near term threat to googles growth and the quality of its earnings future . Those are the two biggest fundamental risks. Probably greater as amazon if you think about where google makes money. Its from commercial searches, not, you know, searching for vacation packages on google. Thats commercial. Thats profit. The facts you have this retail Search Engine called amazon thats gotten bigger every year, thats probably the biggest single negative overhang out there related to google. The one thing that helps google is that amazon at best accounts for 15 to 20 of retail sales worldwide. Obviously a lot of people have got to compete for the rest. By the way, amazon is competing for that 15 to 20 by buying on google. It does have some hedges. Those are the two biggest competitive risks longterm. Theres also the added wrinkle, mark, that its such a bohemath that it tends to be, how would you say it, politically clumsy, visa have i regulators, especially in europe. How big of a factor is that . Theres regulatory risks and theres all of these investments. John set up the question earlier by asking whether investors are going to be dpis appointed by the amount of the operating losses at other bets. The nongoogle core business. I think actually investors are going to be very tolerant of that if they see very high margins at the core Google Business and if they get the picture out and explain the story about what these other bets are investing in, and if you believe that Autonomous Vehicles could be a super large opportunity for some companies and google has got as good of a shot as any, youll be willing to tolerate those losses. You have a cfo thats in place thats much more efficiency focused than prior cfos, and the returning cash to shareholders. Its a really great package for most investors. Mark, when you see diane green off in alphabets board, staying on the board, apparently, and also taking an operating role at google. Running cloud and the infrastructure business behind it. Does that factor into your valuation, anywhere positive or negative . Are you waiting to see exactly what she gets done . Well, the challenge that google has there is that they are extremely far behind two players in the industry. Microsoft with the zur, and amazon with aws. No, we dont ascribe much value to google cloud. I think thats a long shot. Its hard to be number three in a distant number three in a business as dynamic as that. I think there are other businesses, though that, are probably still fundamentally underappreciated at google. You its tube has got to be one. Its reached the materialality threshold, and the other is google play, which has enormous revenue opportunity if they execute well just looking at the apple comp. How much revenue that apple generates off of its evening wroe system. That kind of potential value is there for google given how strong android is worldwide. Mark, i tell you. Its mindboggling to me given the size of googles infrastructure in data center, in fiber. Google docs that they havent done more with cloud as a business. Mark mahaney from rbc. Thanks for joining us. Thanks, john. Up next, round one between Sumner Redstone and his exgirlfriend is over with both sides claiming victory. Well sort out the latest when squawk alley comes right back. First hearing between 92yearold making nat Sumner Redstone and his exgirlfriend is over with both sides claiming victory. Our julia borstein is live in l. A. To sort this out for us. The judge found that he had no urgency in manuels request for an immediate medical evaluation of her ex, Sumner Redstone. This freezes effectively the process, considered a win for redstones camp, along with the fact that the judge says that he will hear a motion in january from redstones camp to dismiss the case altogether. His lawyers saying we are pleadsed that the court today expressly rejected her claims of urgency and granted our request to stay discovery pending next years hearing on our motion to dismiss. Manuela herzer said the reason theres no urgency is because they put the saying that anyone that sees redstone will see what bad shape he is really in. The real problem here is that Sumner Redstone is tragically incapacitated, and we think when we take his deposition, that will be very evidence to the judge in the world. While herzer does not own a stake in viacom, her attorney himted the potential implications of this lawsuit for both viacom and cvs, which redstone controls. There could be a domino affect if the court agrees with us that he lacked capacity and for some period of time and the board of directors and the management of viacom knew about that, there could be implications with the Securities Exchange commission with the shareholders. Yesterdays decision by the judge on how to proceed may have been an early win for redstone. John, this case is far from over. Back over to you. Well see how it progresses. Thank you very much, julia borstein. Lets get to the close. More red than green today, simon. Thats absolutely correct, carl. Thats partly, of course, because were two days away from what the ecb will do, and thats a huge event risk in a market thats still at three, three and a half month highs. The data in europe didnt disappoint today. Manufacturing pmi confirmed 52. 8. Its a strong expansion from italy and spain. Looking at the data youre getting from germany, jp morgan concluding that the industrial sector there is broadly unscathed from the vw emissions scandal. Its interesting that unemployment has