John forte and myself at post 9 and joining us from out west former twitter ceo. Its good to have you back this morning. As we said first up apples big event kicks off at 1 00 p. M. Eastern. Its expected to be about the iphone and kayla is going to cover that and is going to raise the curtain on it. Good morning. Good morning carl. We got a tweet just a few moments ago from apples ceo tim cook saying the sun is coming up in San Francisco and we are ready for a big day. A big day indeed could be ahead for the iphone. For a lot of apples hardware and its product lineup and here is what is telegraphed and what we think we know so far about what could be announced today. First some new colors. Double the memory. A better camera which reportedly has 800 people working on it and then on the other side outside of the iphone, perhaps we get a refresh of the mac book. Of the ipad. Siri could get an update. More visual messages. Well have to wait and see. This update has been described by wall street as solid but not game changing. Sales are expected to be flat. 230 million iphone 7s are expected to be sold and a large portion of the new sales are expected to be upgrades from customers with the iphone 5s two weeks ago. Up 1. 5 . Investors traditionally buy the anticipation going into these events and sell on the news. Well see if that pattern follows again today. Theyre hoping this iphone update is not only solid but solid enough to return the iphone to growth. Shares of apple as you can see down close to 2 in the last year. But its not just about the iphone. Apple sals going to be to turksing all of its services. Its Services Unit generates more revenue alone than facebook does in its entirety. We did get some hints about potentially what services could be highlighted today. Apples music head of marketing tweeting yesterday, time to work, im with the crew, apple, keynote. She is known to bring the house down and that tells us maybe theres going to be a focus on apple music. Until then were left to draw our own conclusions. Some peel are buzzing about the fact and you see all the colors and people are saying maybe well get an update to the multicolored lineup of the c or the se. For accident prone people like me, im of course hoping we get something thats a little bit more water proof but well see carl. Already the jokes are going around on cooks tweet. Going to be a big day. What does that mean for screen size . You name it. People will grab anything they can. Lets talk apple this morning. These days these events at apple have their own peculiar rhythm on twitter. What do you think is important today . If you told me the next leader of apple would be consid considered a thought leader and world leader as tim has done and most people wouldnt believe you. Thats the toughest act in the world to follow and he has done a remarkable job. Three things matter. If they do away with that head phone port they have to make an argument and its stronger than what Bluetooth Technology has shown us thus far. They work and are a lot better and answer the question what happens if you want to listen to music and charge a phone at the same time. Second thing is watch two and then three is the iphone se. Are there two different versions of it. Do they make the entry point cheaper and thus what happens to margins from a ceo perspective. Youve been in that seat before if youre going to change the design of your core product. Its incredibly important. There probably isnt a company thats better in the world at delivering that message in the most precise way possible and youll hear that from him today. Do you believe this head phone jack is an example of them dragging consumers to areas that even they dont know they want yet . Thats one way of putting it. Its a good idea. I ran a marathon in the beats wireless head phones. It works great without the head phones and if that allows them to do other things in the hardware they do thats probably the right step forward. Kayla. Well im curious about his perspective on this need for companies to be all things to all people and as it moves into new markets its wanted to enter lower price points as john just mentioned but whats the risk that you dilute your core product by having such a diverse identified product lineup despite a need to do that . Apple has always done a great job with that. Even with the 1. 0. The high end luxury version of it and low end versions and theyll continue to do that. They have always been great about that. Ill excited about the new probably gps capabilities and the watch that will allow them to do a lot more in the fitness world and fitness tracking so im looking forward to seeing what happens there today. Speaking of apple, irelands Prime Minister spoke to cnbc about apples 14. 5 million tax bill from the eu. Julia is live this morning with more on that story. Hey, julia. No sweetheart deal so i said okay then theres other Big Tech Companies obviously operating here. Does that mean they all got treated the same . The likes of alphabet, microsoft, facebook . And should we be expecting the European Commission to be slapping those guys with with some unpaid tax charges at some point in the future . Listen to what he had to say. And particularly ireland has been one of the foremost players on the oecd program to deal with this internationally. This is a legacy issue now. You have done many measures and enacted many measures to tackle this. Why are you concerned that accepting this money now from apple will have an impact on future investment . Because its an old issue. Its an old issue and we can move forward now with future investment. First of all, the amount of money involved is quite unprecedented but secondly the commission planned it out that some of that money may be due to other countries and some of that money may be due to the american treasury. And its not ours to spend. Whats your message with the likes of microsoft about the risk that this could happen to them . Well, the reason is that those companies came here. Theres over a thousand multinationals in ireland is not just because of tax issues and the talent pool coming to our education system. The fact that we have a proven track record and long system of the european eun whereon. They come here for those reasons as much as the tax system. He was firm. He said look ireland is being penalized. Here as a small country. This is a huge overreach by brussels and i said to him could this kind of behavior lead ireland down the same path as the u. K. . Is it possible . He was addiment. He said absolutely not. No way. He said but this kind of treatment doesnt help. Guys, back to you. Really moves the ball forward julia. We appreciate that. How would you handle this sort of global tax dispute . Thats a complicated question. I would say im in complete agreement with the government of ireland. I think they have been doing a great job reaching out to companies to get them to deliver jobs into dublin and throughout ireland and to larly in the aftermath of brexit for the eu to come in with such a seemingly shocking number of back taxes on apple, that just strikes me as, you know, not the way that the eu should be working with folks like ireland that are doing a great job of attracting all the multinationals. I wonder to what degree you think this flap with apple in ireland versus the eu is unique because apple books profits on huge revenues to a degree that a lot of software and Services Companies do not. Some of them, amazon for instance because of their degree of reinvestment and then facebook and google does this have the same kind of implications for the rest of Silicon Valley as it does for apple. First its a complicated question. Theres all kinds of ways that Companies Book global revenue for whether its goods or services and where those goods and services are sold from and where the main sales office is. All of those things have tax ill mri kagss so for the eu to come back and slap this, you know, again shocking, ill use that word, number on apple, thats going to give everybody else pause and, you know, ireland needs to have some ability as a sovereign nation to attract the jobs and companies to their country. I thought it was surprising and not particularly helpful. Finally, twitter around 20 this morning. Shares up over 30 in the last three months. I know youre aware of some of the speculation surrounding this Board Meeting. Are you contending theres nothing special about tomorrow . Look, i mean, the company is under a microscope like no other company in the world and i think its reached almost Epic Proportions when regularly scheduled Board Meeting starts to take on almost pontifflike expectations. Im invisioning media people and analysts outside of the building looking for what color smoke is coming out of the top of the building on thursday. So i just think its gotten a little bit out of hand with the normal course of business. But what i dont hear you saying is that theres been no evolution in the way discussions happened surrounding a change in control . Has nothing changed at t all . I couldnt comment on that. Im no longer instiide the companiful i have complete faith in the folks in the company and the new Board Members i know brett taylor well and hes an extraordinary person so i have every confidence theyll do the right thing. Given how twitter operates the way it needs to compensate employees do you think it could operate as a private company at this stage . Well it is operating could i operate as a private company i see what youre asking. I couldnt comment on that. I dont know what the board happens to be thinking right now. Im not asking whether it will. Im asking whether you think it could. I mean it could probably it could operate in any number of ways and im sure theyre evaluating all the different options. Finally as nfl season starts this week i wonder what kind of me tricks viewers should be looking for to see whether or not this nfl deal at twitter is going to hold some water. Its early days. Its just getting off to a start. Im excited. Im super excited for it. Ive been paying attention to all the live work twitter has been doing. The tests with tennis. Some of the tests around the conventions and i think that everyone inside the company is fired up and excited about it. I know a bunch of people spending all of their time and energy on it so im looking forward to it and plan on engaging with it the moment it comes out. Well, the s are out. Broncos, go 9ers, go bills, you name it. Well see what happens. Its always good having you. Thanks again. Thanks for having me. We do want to check in on the markets right now trading with all the major averages. Just about to the negative, the nasdaq just about at the flat line. The nasdaq did touch another new all time intraday high but well have to see how it closes. A nice gain for Western Digital after it raises its guidance for the current quarter. Its acquisition of san disk is expanding its customer base. That stock up better than 12 at the moment and take a look at amazon and facebook. At one point both touching new all time highs. When we come back the cost of cyber crimes rising. Plus well hear from golden state star steph curry during his trip to china. Sarah is there live with underarmor and plenty more outside apples event in San Francisco. One of the biggest apple experts around is going to tell us what to expect when squawk alley continues in a moment. Were drowning in information. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. And according to Cyber Security ventures damages and related costs from ransom ware attacks reach a billion dollars an cruelly. Lets bring the ceo and shark tank host. Robert, good morning. Welcome to post 9. Great to have you. So these are big numbers. To go from 24 million to a billion. The report says in the First Quarter alone it was 200 million. Have they just found a type of attack that works. Thats impossible for them to go to town with it. Yeah. First of all, the stats come directly from the fbi. And over 200 million alone this year. Thats going to grow to a billion. Its a convenient attack. And its more convenient for people that pay the money than to dig into the fix for it and its easy. It seems like what happens here is the hacker tricks some individual usually into giving access to the system. They encrypted all the files in the system taking them hostage and if you want your data back give us the money. How do you thwart that attack other than getting people smarter other than using flash drives. Its a traditional method and what we always say is coming down to training number one. You havent won anything you havent entered. There isnt a woman in russia that thinks youre sexy and all of those kind of things sorry. But you would be shocked how many people still open attachments and links. Dont open an attachment for something that you havent verified. Its traditional antivirus. And can do that validity for you. If you do pay this ransom whats to keep you from becoming a repeat victim. Thats the point. A lot of people are paying the ransoms because its convenient. We never recommend that you pay because you have no guarentee that you wont be a victim again and most people dont know they have been effected by ransom or malware so were seeing a growth in managed security. Its an alarm system. You need somebody watching your testimonies to make sure that youre protected. And Security Companies like this and approximate this attack continues to be successful and does it pay itself out some way what should we expect to see a couple of years from now . The low hanging fruit is money but the longterm game is data as a weapon. A lot of this is being instigated by foreign governments, agencies and hacker groups. Theyre using that information and elicit information and competitive information and the cost of data and the loss of data is much more valuable than paying a bit of money but in the shortterm its money. Thats what people are after. In term of shares of victims, publicprivate. Are governments most under attack or is it private enterprise. Its a lot of consumers but the number one area right now is health care. Hospitals and health care. The systems are outdated and youre seeing the growth of the internet of things the physical world and infrastructure is being connected to the cyber world and hospitals utilities are arcaic. Their systems are old. Theyre in a rush to connect those systems so theyre creating a lot of gaps. Its the closest thing you have to a live hostage. Lives are at stake. Apple has an event today. And how hard it is what do you think apple ought to announce around the security of the iphone. Should they go tougher . How much tougher . Do they need to have additional biome trick measures. Theyre tough to begin with. They have to hire a Third Party Firm to hack into it. They feel that theyre confident about it. Theyre always going to continue to increase the security on an iphone. A lot of those there are going to be esthetic. I still dont know how i feel about using my earphones. I have funny ears. Well both be watching with interest robert. Thank you for joining us. And up next ahead of that apple event inside look for Morgan Freeman and his producer on what it was like to negotiate with steve jobs. Were back in a moment. What is it like to negotiate with steve jobs . Our latest episode of bing is out and in it Morgan Freeman and Lori Mccreery tell us about founding a streaming Media Company a decade ago and the tactics that steve jobs used. Take a listen. Can you just tell me what you saw at the time you obviously had an idea that were not going to be watching content the way that we were. What did steve jobs say here . We were presenting at the conference and we talked about movies and television, there were going to be tens of thousands of them Available Online and we have this idea to put Clint Eastwood had a western channel, danny divito had a horror channel and steve jobs said this is ridiculous. Youre wasting time and intels money. No one is going to take the time its going to take to download a movie and watch it online, you should stop what youre doing and inside i was dying because im a Computer Programmer and he was one of my heros and i was trying to not burst into tears and andy grove turned around to me after jobs walked out and said to me you know hes going to do it right . Pre itunes downloading movies or anything. And i thought that we talked about this episode yesterday after camera. You said it was classic tactics. He said something sil to drop box. You have a product there but now the company remember, he said people would never watch video on an ipod right before releasing the video ipod so he had all kind of ways of contradicting himself and trying to throw people off the consent of something he was interested in and he could be a jerk siems. Always asked what would he do about x, y, or z today . We dont know. He would reverse course. We wouldnt necessarily want to do what he would do in the way he would do it. It was fun to sit down with them who coproduced and styles direct madam secretary on cbs. You can watch the full interview and more streaming on cnbc. Com binge, hulu, youtube and apple tv. And were counting down to the close in the u. K. And across europe. The close happening in under a minute. Lets get out to seema at headquaters with that. European stocks moving higher ahead of tomorrows highly anticipated meeting. Theyre up about 1 on the day. Britain in focus as well. Mark carney dprabing the spotlight and testifying in front of parliament and defending the efforts in the wake of recent Economic Data that suggest that the british economy are holding up post the brexit vote. Listen in. It represented a risk to the Monetary Policy. Feel comfortable with that. Absolutely. Feel comfortable in the decision that i supported and the committee took in august to supply Monetary Policy stimulus. His comments come as