welcome to squawk alley. joining us this morning. jon steinberg. good to have you back. and a busy day. check out shares of apple this morning. the stock slipped below 100. 99.57. hugging that level on this new report to the chinese paper. it may not arrive until 2015. a breakdown in talks around network licensing is a big reason for the delay. the six hits stores here in the u.s. on friday and several other countries. do you think people freaking out about this need to rethink it? >> absolutely. once we saw the 4 million number on preorders we knew this was going to be a big u.s. launch. the question was were they going to have enough supply to successfully launch and supply demand here and overseas in china. if apple were intentionally

holding back supply from china in order to supply the use. but if the regulators are actually keeping them out for a while they could be doing apple a favor. plus don't forget last time apple had a really huge phone launch here, the shoppers from china managed to find their way here to buy the phones and bring them over. so it's not as if we are not in a global economy. in the 21st century are with airplanes and people can get their hands on goods they know they want. >> it's gives you a floor and upside. now they have an opportunity in outperformance once they get in there. i agree with john. take the 2% down. a good opportunity. >> we also have a lower cost model in this launch. do you think this is going to be less of a block buster than the five was? the five and the five c which was one of the big upsides in

china before. >> i think this is going to be bigger in general because larger phones are more popular. plus the cost reduction on the 5 s with touch id. which you are likely to see decent demand still holding up. so unless we are seeing january or february yonts see a problem. >> you don't think if there is a delay in china suddenly it's going to be easier for people to get a phone this week in the u.s. >> i think it depends houp apple is managing the supply change. i'm not sure. depending how long they have known about this issue, they are allocating units to where demand is. then they will do a second run which you expect to see in october/november. they get to allocate those units as well. so it could be you get in supply/demand balance sooner, leading up to the holiday season. that could be positive

domestically. >> sold out so fast. i've been a middle of the night order since it's been available. usually by 8:00, 9:00 you can still get some. they were gone this time. there may be a production issue still with the plus. we heard the rumors of the 4 million i don't think they broke down plus versus normal size. so that could be an incremental issue in china as well. >> a good test in cook who made his bones as the supply chain executive. more on the delay later on. coming up this hour right here on squawk alley. speaking of the apple, paypal going on the offensive. the company taking out a full page ad in the "new york times" slammi inming apple's security record. we want our money safer than our selfies. i guess where apple is weakest right now. >> one thing for paypal executives to say they are not

worried about apple but when you take out an ad that goes for the jugular of a company that has rolled out a new launch that does effect part of your business model, i think that speaks highly for how paypal feels about apple even if it is not directly saying that. >> i've employed this tactic. the criticizing up tactic, you never want to criticize someone you feel is below you in terms of market competition. you want to go up. that is what they are doing here. not unlike apple in 1984 when they criticized ibm. >> all of a sudden paypal has to be scrappy in a business they helped invent? >> i know. >> paypal isn't in the same business really that apple pay is trying to get into. i think that is kind of the problem here. yes this is kind of clever. >> they are trying to get in. >> they are trying. >> and they have to some degree. >> in home depot a few other place. i'm a paypal user.

and i don't like entering my phone number at retail. and retailers like this because they can track you better with a phone number than if you use a credit card. paypal saying we're more secure but they are giving more information to retailers than apple would. >> you would never give air time to someone you thought was so far behind. you live it when you're criticized if you are the smaller player. >> if apple does start going into small business loan, small consumer merchant payments which is what paypal really has its bread and butter in. i think it would be more worried. but you can tell it does feel threatened by apple. >> paypal has a real opportunity here. because there are certain things apple pay won't be able to do like facility attractions

between ios devices and android. this is more merchant to person, person to merchant. this is an area where paypal does have a lot of traction. >> month to date s&p is down 1%. ebay down 7%. charlie roosevelt and your personal privacy, take a listen. >> our business is not based on having information about you. you are not our product. our product are these and this watch and maces as and so forth. so we run a very different company. i think everyone has to ask, how do companies make their money? follow the money. and if they are making money mainly by collecting gobs of personal data, i think you have a right to be worried. >> what do we make of this?

is he arguing apple is truly a hardware company still? >> he's arguing that. he's arguing that google and by extension facebook are not necessarily to be trusted. there is a way this cuts the other way. these companies are also maybe a bit more careful about security than apple is digitally. which we saw with the icloud hack which apple still hasn't fully embraced as its responsibility i think. so i'm antsy about things like goog now who says hey we know what you want before you want it. but they are careful. and apple needs to be careful too. >> i thought the interview was a little bizarre. some things he said were not coherent. google is a service company. then he said you could fit all our products on this table here. you can't really fit. i was thinking how many versions

of air. so the whole interview, it was a steve jobs interview. >> even apart from the interview t messaging feels like apple is distancing itself from software. iclaude, itunes. it does seem to be reattempting to identifyist ising itself as hardware company. >> alibaba, demand is growing. increasing to between 66 and $68 a share. with the potential to expand if the underwriters exercise the option to sell more stock for demand. >> underwriters had a few key goals here. number one they wanted it to be the biggest ipo ever. and it will be. 2 .8 billion at the top end of the rage. th range. they wanted a the bigger market

cap than amazon. because they wanted it to still be a discount to some of it's peers because there are still concerns about the corporate governance and structure and they wanted to give it a discount to reflect concerns still. a refresher for our viewers. we talked about this when the first filing was made. with i if you buy shares on friday you won't be buying into the company directly. because it is a chinese company it has a quirky structure. a cayman islands company actually. and you will be buying a share of the revenue but 120 subsidiaries are wholly or jointly owned by ma. and even though you get the websites revenue you won't necessarily be buying into the licenses to operate which will remain in china. that's some concern when we talk about the issues of the corporate governance and structure. that is where by originate from.

>> not that concerned, right? and cheap is what's moving it here. barons had an article over the weekend. at $66 now we're above that. compared to amazon at 71, facebook at 38. i don't see how this doesn't trade up like crazy on ipo day. >> you have to strike the balance. and twitter and linkedin which was doubling on the first day. you want a happy medium. >> did you see the pole numbers that show how many americans are familiar with this name? >> i didn't see that. >> 12%. it is not going to be a household name in the near term. >> every hedge fund. every mutual. everybody wants to hold this for the long-term. a part of the portfolio and you have retail investors. >> it's probably better that it is not a household name until it becomes a little more

transparent. >> i looked at 11 main. that is their us entry into ecommerce. how long before they have one here. >> in the meantime a team left my boeing. reported set to win a contract from nasa to build a space taxi to ferry astronauts to and from the space station. and that brings us to the morn's squawk on the tweet. like uber or lift on earth what should they call the new space taxi service? tweet us and we'll get responses later on in the show. always good having you jon. >> we also want to check on the markets. after a rough day for the nasdaq yesterday. a little more air out of that down about 9 points. s&p down a point. we have the fed with its press conference tomorrow and also the

big alibaba ipo later this week. some data giving pause to investors, especially some softening in china and their economy there. so that's been a little bit of a lagging indicator here. also check out shares of humana. rallying after the company announced a $2 billion share buy back. extending through 2016. humana currently the biggest winner. and shares of microsoft rallying after rbc started coveraging with an outperform radiatoring. creating value with a shift in emphasis towards cloud and moenl computing. that shift started in ernest a couple months ago. but analysts finally getting on board there. >> stocks are rebounding a bit this morning. after the nasdaq reported its biggest loss in nearly a month yesterday. more in a moment.

plus when the apple watch comes out next year will other wearables really be able to compete? and as we await alibaba's ipo. one start-up with multiple rounds of funding from alibaba will join us a little later on this hour. ♪ the all new, head turning cadillac ats coupe. it's irresistible. ♪ whenwork with equity experts who work with regional experts

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but since we've taken a stepped backwards. dominick shoe is back on hq looking at some of the biggest losers since the beginning of the month. >> 48 caps down more than 6% since the recent peek on september 4th. a couple big names are in tech stocks. names like social media, linkedin now for than 8%. yelp is down about 7%. amazon down around 6% that time. large and small, it doesn't matter. meanwhile 86 stocks in the russell 1,000 in bear market territory. falling at least 20% from recent highs so far this year. internet road company pandora

losing about --% of its value. come investors are concerned about user growth. but analysts think it could show a possibly 45% upside. -- now they are $33. a 66% drop nearly. analysts expectations have been dropping for this stock alongside the declines. but with average target price still of $34 a share, investors have taken another look. and some firms like -- tech has been a sector favorsed by some analysts. so the question becomes the beaten down tech stocks particularly the 86 in bear market territory individually are buying opportunities. these momentum names they do carry a disproportionately lower move in any market pullback.

so overall tech an important sector for some. but the individual names matter for that lot of investors. >> good stuff. after getting clobbered yesterday, tech stocks, including yahoo remain mixed this morning as the industry gears up for the monster alibaba ipo later in the week. jack ma is in singapore today. joining us is the rob sanderson, manage director and senior arnls covering the sector. he joins us from west palm. good to owe you. >> good morning. >> you think it's worthy of the hype. why. >> i think there is an incredible opportunity in china retail across the board. consumption opportunity is growing on top of the 9% gdp growth rate. it is a big proportion of the chinese consumption. so layers of the tail wind and this company is dominantly positioned in that marketplace. so it is just a unique

opportunity globally. and it is still early in the story. >> rob, it is going to be the 8th or 9th largest tech company that's traded here when it goes public. how much room do you think is actually being made in the market to buy these shares? and to what of the selloff do you aattribute to some people are saying this might be the top? >> yes there is certainly, you know, 25 billion dollars looks like something in that neighborhood as the amount of capital raised. tech books have make room for that. but the supply of stocks has been narrowed all year. a lot of buy back activity in the tech sector and that's putting a limit on supply. so the market can absorb these big events like the al pa baa ipo. and maybe there is a little wiggling around on tech books in advance but that is not a sustainable move. >> talk to us about the downside here to alibaba. i don't think that necessarily gets talked about enough. this is a big company.

it's got competition within china from the likes of j.d. what is the likelihood that it doesn't live up towel the valuation and the hype it is getting. >> there is not enough discussion on the downside because o the upside looks so rosie. but there are question onts the share position. it is so dominate. some of the competition is grows faster, albeit from smaller numbers. this company has han open marketplace model where the j.d. is more amazon like where it's direct sale. and is the preference changing in the chinese consumer. and a list of other concerns but for the time being it is not going to catch up with the growth rates any time soon and it think it is going to be a very successful ipo with a strong follow through. >> what they own, what they buy. >> they are saying all the right things on the road show in terms of appetite to grow internationally.

it is there but they are very careful to not let people take the eye off the ball on the china retail opportunity. and while they will make overseas investments, i think they recognize that china is really so powerful that they can't do anything to make any missteps in that market. >> rob, we'll see what friday brings. it is going to be crazy,ky tell you that good to see you again rob sanderson. fresh update to the feud brewing between rhianna, cbs and the nfl she tweeted cbs you pulled my song last. now you want to put it back in this thursday. no. you all are sad. now "new york times" reporter is

saying after the protest they will drop her song this week. this crazy story that just builds on head lines day after day. >> rough when you think about it. they don't like using rhianna it seems because she will remind people of the domestic violence. she. >> reporter: s >> what's next? >> on the other hand any reporter who's ever had a story killed will tell you it is not your candy shop. it's foofrt business. >> decisions are taken at a very high pay grade. i'm sure that cbs will not take the decision lightly. and this obviously was a big back and forth for the company over the last week. >> but there is an argument to be made. hey they should play more rhianna. because she was a victim in this case. but apparently that is not the way the thinking goes.

>> shares in apple after some troubling reports on iphone shipments in china. plus before you think about trading alibaba on friday get a closer look at the u.s. footprint today. one start-up raising multiple rounds of funding is here. you used to sleep like a champ.

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welcome back to squawk alley. check out vernax. the stock plummeting. the appeals court vacated the $368 million damage award. they charged apple violated 16 of its patents. in heavy trading it is down about 52% right now. back to you. >> quite a big move. thanks morgan. >> this week's tech crowd

features two new wearables from head to toe. both trying to give a boost to athletic performance. you get to decide which kick starter project should be funded. >> jolt is a wearable sensor that detects concussions. clips to head worn equipment and alerts when a potentially harmful impact is sensed. jolt also connects to smart phones allowing coaches to monitor an entire team. the goal, $60,000. so far it's raised more than 30,000 in funding. digit sole is a heated insole allowing users to change the temperature of shoes. also tracks distance walked and calories burnt kroeld controlled and monitors via smart phone it's raised nearly 53,000 to

date. who should be the leader. vote now at cnbc.com/tech crowd. >> we have a couple minutes before the close in europe. >> the thing that immediately jumps out at you is greece which has had a bad session. i'm not sure if there is physical follow through. overall we're just bouncing off two week lows for the moment. a pretty poor survey in germany plunging from 44.3 to just 25.4. 2 biggest news is what happens with the scottish referendum on thursday. the latest is the prime minister has put together a deal with the three main political parties in

england to scott lald saying we'll keep your funding and you will get more over the health service. big news out of germany is luft hans is a has been able to prevent pilots from going on strike as planned. that still may have. luft han is a down. and this is british airways here. you still also with in telecom a rush to buys fixed line operations. the latest in the spanish market is the france's orange. it is going to pay $4.3 billion for the broad band player jazz fe tell. in paris, the french government is likely to call a vote of no confidence in parliament. this is manuel valet. in the wake of rejigging the government to reject some of those socialist rebels. it is a voter no confidence

officially for the government but also for francois still planning to cut public spending. and that's where the rubber meets the road with a socialist party. if the rebels stay, there could be elections. >> the stock highs of the day here. 1990. now that apple announced the new watch, can the competition keep up? we'll ask the creo of misfit wearable. and a boeing reportedly set to wane contra win a contract to create a space taxi. like uber or lift on earth, what should boeing call the new space taxi service? tweet us. we'll get the responses later this hour.

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from apple pay to fitness tracking, apple's watch promises to go above and beyond competitors. the next guest has a fitness wearable. the misfit wearables company was

co-founded in 2011. sonny, good to have you. good morning. >> great to be here. >> this space just got a lot more interesting. how do you think apple changes the game, first of all? >> you know, i think the apple watch is the prettiest screen-based smart watch out there. and i'm loving it. the $300 and above category has just gotten more interesting. >> does it collide with misfit? >> you know we've been focused on the segment that is looking at activity tracking and sleep tracking as a primary function. so we made flash, the product we launched today to be incredibly accessible and affordable. and a great value at under $50. >> so sonny t apple watch isn't going to do sleep tracking. you need to be charging it during the sleeping hours apparently. what do you think is the peek number of things we are going to be able to wear and track through our watches? because you seem to be applying there is a spot on your wrist

and a spot somewhere else for the stuff you are selling. >> some people are going to want to wear smart watches and drop $300 and above for that for a multifunctional device. and some people won't wear anything on the wrist or anywhere else on the body in terms of technology. so we made flash so you could wear it on a number of places. i have one on my lapel and the coca-cola red version on the wrist. so having those options is really important i think. >> sonny, we saw before the apple launch, jawbone open up its platform so they can partner with other wearable, including other watches. do you see misfit opening up to partner more seamlessly with other competitors out there. >> we certainly did. we just launched build.com recently which opens up not just

api to share data but you can directly to the shine or the flash. and we made our libraries available, making the data open, portable. it's extremely portable. we're also excited about the health kit and looking forward to making information there as well. >> one of the things is that it's not fashionable. you have fossil working with intel. do you think the industry overall has been late to make these products look less clunky. >> you have to make them wearable first. and i think one of the biggest issues is the battery life. for centuries we have never had to charge anything on our bodies. so being non charging was very important for us to make shine and now for flash. making things fashionable is probably the next step. and, you know, we are on it. and i think a lot of people are

on it. i think we are going to see the convergence with a number of fashion brands soon in the technology space as well. >> sonny, what is the mass market price point for wearables? do you think there is one? is it 150, 200, $100. >> 100 and below is a great starting place, especially if you are just getting started in this category. that's why we pushed in that area. above $100 is difficult, especially if you are new to the category. but if you are a tech geek like myself spending 200 or $300 on a smart watch is something i might be open to. >> what is the dream designer to make these marketable? is there one brand or design. >> i don't know if everyone is going after one brand. there are a lot of great. at the end of the day i think

some of the fashion brands are some of the most exciting ones out there. we wear fashion products. we don't wear technology in a sense yet. but i this the worlds will converge. >> we're going to keep our eye on you obviously and the space as large. thank you for your time. >> absolutely. >> sonny vu is the ceo of misfit wearables. when we come back, trouble in china where china is forced to wait maybe months for the iphone 6 in that country. ♪ when the world moves, futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with paper money to test-drive the market. all on thinkorswim

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coming up at the top of the hour. baron's top 25 adviser managers almost $2 billion and says the market has more room to run. where he's placing his bets. tom baron runs colony capital talking everything from feds to housing plays to movies. chairman of the mere max and one of his investing partners is going to join us. rob lowe live. that and much more straight ahead on the half. carl see you in about 20. >> can't wait for that. take a look at the markets this morning.

a big pop in the dow. the s&p back to 1992. some of this might be just part of the daily calendar. we got european close a few moments ago. but also the journals. >> and especially that being an indicator for how long the fed remains committed to leaving that key interest rate low. and that is why you are seeing such marked response in the market from a comment like that. >> we'll see if it last. in the meantime apple shares have been hovering around the $100 mark. hovering down 2%. the iphone 6 may not debut in china till 2015. the new iphone might not be available until years andy

there. joining us is the fortune writer scott zendrou ski. thanks for your time. what is the latest. what do we think we know about the availability in china. >> the carriers here don't speak about when the iphone is going to be here. when you call the carrier, china mobile and china unicom, the reps said she couldn't say anything because apple had updated the company when they would be delivered. and china unicom it was a little less staged answer. they said likely at years end. which if you go back, the iphone before the iphone 5 they come out about three years after they debuted in the u.s. in china. so that would be roughly the same time line. >> scott, should we assume this

is a network license issue? the feedback from the carriers seems to suggest otherwise. given that government regulators have been telling carriers you are subsidizing phones too much. should we view this as protectionism perhaps trying to help gain market share? >> that looks like the most probable answer right now. there is a report come out from shanghai saying it was a network access license issue. it is -- i mean we can only speculate that it's protectionism. we do know that shaw me and may zoo, they have brand new models in the market. >> if chinese consumers really want this, how long can china hold them off. don't they eventually end of the year have to cave and let the phone in.

>> oh yeah. if you really want it, you can get it. so remember that the iphone 6 is going to be available in hong kong. and there is always a great market for iphones coming into the mainland. in hong kong it is going for about $720 retail right now. so there are going to be a lot of iphones brought across the border. probably without a lot of proper receipts. >> should apple watchers get used to this? it's happened with the five and now with the six. and despite social media wasting no time saying of course china is where apple makes its smart phones but it's one of the latest to get the retail marketing. is this just how business is going to work for iphone in china? this might be the way it goes for the foreseeable future. apple came out with the 5 s and c at the same time in china that

it did in new york and other developed markets. so this is a big step back for apple. whether it is a bureaucratic delay or whether it is something with the company, we don't know for now just yet. but there was an expectation among apple fans here. among those who wait in long lines to get their phones that they would be getting them at the same time as everybody else in the world. >> scott, interesting, great story. congratulations on that and thanks for sharing your insight with us. joining us from fortune talking to apple iphone launch in u.s. >> new news from side car, including a familiar and famous face. indicate rogers joins us with a look at that and the transportation economy. kate. >> hey. well heaps of crass and criticism have been tossed at the sharing economy. uber and lyft coming with rhinestone start upside car.

big names in. and so much investment capital and sky high evaluations some are saying a bubble could be near. some told the "wall street journal" they are taking on too much risk. -- critics here are failing to see the big picture. he wrote that the leaders in this market can subsidize prices and cut fees for their drivers as much as they want. but that is not sustainable. what is sustainable is increasing utilization of the car as much as possible. and that is shared rides. investor says we have to look long-term at the ability these transport start-ups have to impact your decision to buy a car. the market that uber lyft and side car address is largely more than the taxi industry's market size. and once they go live these are

going to have even more. less driver reliant is going to allow long distance transportation to become an option. plus if uber's valuation is near 20 billion heck says it is only about 1/4 of value of the traditional auto maker. >> fascinating space to watch with so much happening from the investment side there. when we come back investors line up to invest in alibaba, alibaba is a investing in them. one u.s. company with multiple rounds of funding from the china e-commerce giant will join us. up next on squawk alley. when change is in the air you see things in a whole new way. it's in this spirit that ing u.s. is becoming a new kind of company. one that helps you think differently about what's ahead, and what's possible when you get things organized. ing u.s. is now voya.

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alibaba is the name of the week with investors hoping to get in on the action following what maybe the most anticipated ipo ever. not just baa baa's valuation that's so impressive. the e-commerce giant has been pouring money into the valley for years. it's just one of a dozen or so start-ups that jack ma has taken an interest. joining us is the ceo and co-found of peel. good to see you this morning. >> thanks for having me today. >> tell us about how peel works. it is available in over 200 countries. you have raised a ton of money. how does the product work. >> peel was founded with the vision of so you have 500 channels on your tv, what do you

watch? added to that complexity is a bunch of remote kroels kroeld kro controls on the coffee table. we want to just tap on an image and tune you into the show. regardless of the set top box or tv you have. and we're shipping on half of all the android phones that ship in the states today and also available on iphones. close to 90 million people have activated this product. >> how has your participation and partnership with the tech giants. i imagine as many get more into tv streams on their own they would like to develop something similar. but you are already there. what conversations do you have with them? >> i think if you look at the way last eight years, the attempts have been either people

create a box oar or o website or something like. but the most ignored piece in the living room is the remote control. so we are not into licensing content or streaming content. at this employment. we are about pointing the consumers to the show they want. so think pretty much partner with everyone, including, you know, tv studios who want to drive viewership to their show. there is a way they can advertise right on the remote control or ways they can drive viewership through the social platform using a simple link hch like technology. >> it was the conversation with alibaba like. what did they tell you they were interested in before they invested in each realm. >> first and foremost, i to understand alibaba as an investor it is really important to go back to jack ma's principle, which is focus on the long-term. focus on the product.

focus on consumer, take care of the employees and then the investors will be automatically taken care of. and that is the same principle they apply when they work with companies like peel. so it is fontsic for us to focus on the long-term. having said that specifically i think entertainment is a massive focus for alibaba has a company. you know they have partnership with lion's gate. they own the local company in hanzao, and they are building a the set top box with the operating system. we being in mobile and having connection to the consumer experience is extremely strategic for them. that is the connection and also we have collect a lot of data on consumer behavior, which anonymously can be used to power their e-commerce experience. that said, their investment is really -- you know, they look at the strategic area and focus long-term. >> what is it look to be part of that eco system to have the line

of communication open to jack ma and to have potentially ownership by alibaba be an exit opportunity. >> fantastic, like i said. they come in, this is -- you know, there is one round we made public which happened in 2013. this was a significant step up after that which we will be making it public after the quiet period is over. it's fantastic to have somebody like that come in at the later stage but still allow us to focus on the long-term. we are close to 100 million users and want to focus on the smart home and bring intelligence to it. and to be able to take that big risk and the audacious vision and have a alibaba to focus on that. it's fantastic. and jack is an inspiring guy. >> seems to be theory the family of alibaba invested companies is

getting larger by the day. dwraulgss on being part of it. we'll certainly keep our eye on your company. >> sure. absolutely. >> nasa announcing at 4:00 p.m. eastern it will reveal the winners to build the space taxi. a boeing team is in contention. our squawk on the tweet. what should the new taxi service be called? we'll get your responses with the dough now up 85 points. want to change the world? create things that help people. design safer cars. faster computers. smarter grids and smarter phones. think up new ways to produce energy. be an engineer. solve problems the world needs solved. what are you waiting for? changing the world is part of the job description. join the scientists and engineers of exxonmobil in inspiring america's future engineers. energy lives here.

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squawk on the tweet. nasa announcing at 4:00 the winner of the contract to build the space taxi to take astronauts to and from the space station. what should it be called? cathie rights uber lyft. it is unridgeable but the ultimate definition of the space taxi. one writes the galaxy cab. and another writes spaxi. we got big news of the massive

liquidity for five chinese banks. and then the european close, which has been bullish more than bearish lately. >> also the russell 2,000 technician saw it close below a 200 average. >> a big range. almost a 20 handle range on the s&p from low to high today. let's get to the judge and see what the next hour brings. >> welcome to the halftime show. j joe, dave, found oer of main st capital. and our special guest is the founder chairman and ceo, tom barrack. we do begin with the markets and the question on the minds of a lot of