and good morning. it's 8:00 a.m. at apple headquarters in cupertino, california, 11:00 a.m. on wall street and "squawk alley" is live. good morning. carl quintanilla is off today. joining me for the hour we have john steinberg here, ceo of the daily mail north america and mr. andrew ross sorkin. we've lured him into manhattan. nice to have you here with the big interview coming up. we'll tell you more. john fortt joins us live from silicon valley this morning. great to see you. we begin here with nobel prize winner in economics, joining us from france. professor, thank you so much for being here. congratulations and we understand you just got off the phone with the french president? what did he have to say? >> thank you very much. the french president just called, yes. >> i'm sure he was excited they

now have two know bell winners including the winner in literature. interesting your win comes after france was downgraded by s&p ins terms of the outlook on friday. a lot of concern about the state there. how healthy are the fortunes of france and of the eurozone at the moment? understood this isn't why you won but can you comment briefly on your home country and its prospects? >> >> the fund mentals of france are good. we have lots of human capital and france has lots of assets but it does have to go through reforms. i think the labor market reforms, reform of the state, become lighter, while at the same time being, you know, socially, because we've seen the skands nave ya, for example, do it and germany and canada, australia do it so things we

have to do if we want to stay competitive. >> we wonder if you can talk about receiving the prize. where were you? the odds by the way did have you as on the short list for receiving it. were you surprised this morning? >> thank you. there were rumors but rumors are not reliable. i was surprised when i got the phone call i was in my office actually working and actually missed the first call because i didn't have the phone available and then i was told i had won. that was extraordinary. the welcome of my colleagues have been amazing. professor the key to your work is competition needs to be defined by specific industries. what are some industries that jump out the most to you wheres there's the clearest policy implications that make sense to you? >> to give you some examples i worked on many industries but to

give you examples of recommendations which has been used, for example, with the business core we've worked on s the stacking and foundation the fact in high-tech technology you have to deal with that, we propose reforms for patent rules, but entities written together a different pat weren't to market them jointly and the authorities to accept them or not and we need safehaven kind of thing and we expand our rules which are -- which we call information free, which do not require formation so that we could accept them.

work on central patents. i've been working on payment cards, for example. so payment card way we call a two sided market, a market in which you try to bring multiple sides on board. for example, platforms like visa, american express, massercard, paypal, merchants and there are rules for payments from the merchants bank to the cardholders bank we had to define. >> given the scope of that work you can understand how many different parts of economics jean tirole the nobel prize winner this morning, announced, in a statement the committee, the royal swedish academy awarding the prize for his analysis of market power and regulation. the headline for the science of taming powerful firms. >> so here's my question for the professor, in terms of taming powerfuls firms.

we talk about technology companies on this program a lot. specifically google which has been under a lot of pressure particularly in europe. it has been described as a monopoly. i was curious your thoughts about that company and perhaps amazon? >> well i'm not well placed to talk about it because i will have to go through things in more detail. google is an example of a two-sided market i was talking about earlier. google has to bring together eyeballs which take advantage of the search engine and the e-mail and so on and on the other end you want advertisers and those markets tend to be quite concentrated. so the name of the game in such market is actually to have stability so if you have a more efficient transaction the next google can enter and be free to enter. you don't want to help inefficient firms to replace google. that's not what you want to do. but to make sure that in terms

of the competition, you are able to get entry if needed. that's the kind of thing. but i cannot really talk about the specific case because it's a very topical case and any judgment will be, especially today. it will have been interpreted as a stance. i will be taking on the google thing. >> we understand -- >> that's what we were hoping for. >> that was the idea. before we let you go what are you going to do with the prize money? >> i have no clue. to be honest i got the phone call, i was surprised. since then, i've been talking and discussing, i don't even know what statement of the prize is, exact statement of the prize is. this is going to take time. but it's an incredible honor for me and all my colleagues. >> i would like it to see you encourage the committee to maybe open up to competition and bring

that rice down a little bit. we know that your work shed some light on it the monopoly on the know pnobel prizes. thank you for joining us this morning. congratulations again. >> thank you. >> do we know what the prize money is? >> usually about a million dollars. >> he will get taxed in france, though, on that. >> i questions it depends on how he handles it. it will send a message to everybody. so great to hear from him this morning. it's always so controversial as to build you call it a nobel prize or just the memorial prize. leave that aside much more we can read about his work downline. to the markets. u.s. stocks in the red, the nasdaq recovering somewhat but the biggest loser of the bunch off its lows but tesla, celgene about the biggest losers follows a tough week for that index and markets. let's bring in contributor rich bernstein, ceo of richard bernstein advisors. good to have you with us. is this about the semiconductor

still? >> well, kelly, i think you could point depends on where you want to look in the market you could point to about anything, whether something in technology or something in europe or something in commodities. i mean i think for anybody who wants to be bearish there's plenty of fodder to chew on. >> how much further does this correction and how much deeper do you think it goes then, rich? >> that's the ten cent question. i wish i was that smart. i'm the worst short-term trader. they never invite me on "fast money" but i will say, look whenever you have a correction, one has to sit and try to decide is there something fund mentally deteriorating in the economy and corporate profits or is this a buying opportunity. and i think when we look at the data, we say this is much more of a buying opportunity than there is something fundmently wrong in what's going on. that may be different in europe. there may be a difference in commodities. for the overall u.s. economy which has not been robust at all, that trend seems to be

intact from our perspective. >> everybody thinks that trend is intact. the question is then f this is a blip, how much of a blip is it and how -- nobody wants to time the market but they all do. frankly. so then the question becomes how much more do we have to go if we have to go anywhere? >> look i have to be honest. we don't try to time the markets. i will tell you that i think we are already starting to hear from the fed that they are willing to do the right thing. i mean they're talking about reversing what everybody thought was going to happen a month ago, two months ago, slowing it down at any rate and that's the natural. that's what the fed is trying to get people to understand it was an it terrative process and the fed is not going to willy-nilly raise interest rates despite the fact that the economy might not be as robust as people thought two months ago. that's the important thing is that usually it's a policy mistakes that end up causing -- policy not only in the government but in the private

sector as well, whether it's corporate policy, but policy mistakes cause the next recession. corporations are not making those mistakes and doesn't look like the fed officials are going to either. >> rich, when you look across the different indexes is there something specific you see in each one or a signal you're looking for. can you separate out the nasdaq from the s&p and dow? where do you think the bright spots are or is it all global concerns hitting all of these? >> that's a great question. >> what i think is very odd is that people are more and more worried eabout what's going on around the world, the european economy, emerging markets economy but some of the stocks that are most exposed to those areas have been outperforming those least exposed to those areas. that seems odd to me. i would say that if you're looking for opportunities here, i think you're looking in reasonably valued small cap stocks here. because they're domestically focused. >> that will open some eyes this morning, get people thinking.

rich, thank you very much on this monday morning. after a difficult market week with the nasdaq currently down about 14 points. coming up is sunday night really appointment tv? we're still going to try to find out if the biggest battleground in tv sunday night actually still matters? plus, the biggest cloud conference on the planet. live at salesforce.com's dream force a little later this hour and standing out in the wave of start-ups the co-founder of flicker telling us what separates the successful ones from the rest of the pack. stay tuned. goodnight. goodnight. for those kept awake by pain

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welcome back. first up heres comes apple pay. reports saying apple's mobile payment service expected to launch at walgreens this saturday. that information coming from a leaked walgreens memo. it's unclear if any other retail partners will be ready to launch by this weekend. jon, with so many wondering will there be a specific date this is rolled out on the iphones. >> looks convincing the memo that was there. the apple mainstream nearfield communication, what this device does, the technology has been out there for a while like tablets have been out there for a while. if it's confusing to use, baffling it's not going to see adoption. seems like they're going to put it in passbook the kind of cards. >> the worst. >> the worst. >> i know. >> i don't know -- >> passbook is awful. >> stick it there, it's a problem. >> you have the new phone. >> yes. >> if you went to walgreens this

sunday do you imagine you would try it? >> i'm a huge geek. the problem is not if i use it. if you use it. i even use the thing in the taxi way to go listen and pay. >> i do way to go. >> the question -- >> i'm a geek too. >> nongeeks do the normals use this technology. >> i don't know where you fall in the geek/normal spectrum but what do you think? >> i'm pretty far on the geek side. i think there's going to be definitely a learning curve with this. nobody has ever paid quite this way before where it involves touch a phone, you wave it somewhere. i can get confused sometimes if i'm at a payment terminal not sure if i'm supposed to press a button or tap the screen. at first this is actually going to slow down the checkout process until the customer gets educated. i think apple has an opportunity to do that at retail. that's a place where people are going to go to apple stores to try this out. that's going to fall in angela's camp and as people go in to

check out the new ipads we expect to see debut on thursday they will have the opportunity. it will be a challenge for these retailers but an opportunity for your higher end retailers who want the iphone customers. >> are they doing a soft rollout of this or going to be a specific drop date? jon, do they not want to draw attention to it and have everybody trying to do this? >> fortt tends to be better at the dates than me but they have the announcements they will do retina ipads, one ios version, and payments will be rolled out. do you think it's at that event? >> yeah. i think they'll roll it out, announce that it's going live, but if they're smart about it they know that humans are the bottleneck here, both on the retail floor, the employees trained to coach people through the process and using it for the first time. they'll do it in the best staffed, best trained centers, the big places first. not try to roll it out across every walgreens in the united

states where those employees might not know what to do. >> are we going to have marketing? specialized displays at how to do it at all the different retailers doing this stuff? >> that's the question. >> typically they don't push these things that hard, right. they tend to release it. they do a lot of outdoor advertising. i would expect the outdoor advertising to have imagery around the payments and let the viral effects kick in on this stuff. my gut it will be tough, won't see widespread adoption right away. like tap to pay with cards hasn't seen it. i think it's a bit too hard for people. >> speaking of mobile payments one of the largest banks in france partnering with twitter to allow cust pleomers to trans money via tweets. it's preparing to offer simple person to person money transfers regardless of what bank the people involved use. if we think it's -- >> this is ridiculous. >> you don't like this? >> we don't have enough people it logging in registering for twitter and now people paying by tweets. six people a day will do that. this is the obscure use case i

can imagine. >> can it be secure? >> you can do it through direct messaging or something like that. this is a saturated space. venmo is doing this, paypal wants to do this, i'm sure apple will have a peer to peer type thing. i don't know why bother with this. >> jon fortt? >> ridiculous but way early. i was on a panel with a couple of twitter revenue side execs a couple case ago talking about the buy button, they see possibilities with that for flash sales and the like. still still early days. this is a company that's -- a bank that's not even working that closely with twitter. they're trying to use les the platform so it might be interesting, lots of problems but it's early days. what you see square doing with -- >> jon you agree with, right, no one is going to use it? you agree with me, right? >> no one's going to use it? yeah, probably nobody's going to use it. >> thank you. >> still worried about the security aspect. if all you have to do, explain this to me, is simply tweet from

ones user to the other. >> yes. >> and that means all you have to do to compromise it is log into somebody's twitter account well, leave these logged in all the time. >> that's what i said. >> that's an issue with everything. most have fraud protection on them like if you use your credit card. the easiest way for your payment information to be stolen is when you hand your credit card to someone at a restaurant. how many people see that? >> that happens everywhere in america. everywhere else -- >> right there -- >> even the u.s. that's going to be changing in the next year. >> theft would be the least of the problems. whenever you have a problem like that it means you're seeing a lot of usage and uptake. that would be a high-end problem for them to have with this. >> fair point but i still think it's a sticking point. venture capitalist peter teal sat down talking everything from alibaba to "star trek" references but interesting things to say about tech investors and valuation. take a listen. >> tech investors always overrate growth and underrate durability. most of the value of these

companies, you're right, 75, 80% of the value of these companies exists a decade or more in the future. so you can measure growth, you can't measure durability. investors are always biased to invest in things they themselves understand so venture capitalists like uber because they like driving in black town cars. they don't like airbnb because they like staying in five star hotels not sleeping on people's couches. >> wow. fair point. or is it? >> i think he's thoughtful. i read his book as well. i think the points he makes are spot on. i think people tend to resonate towards things they can understand. look, uber's price is strat spheric at this point. i think that's a fair point. >> i love peter. i think he's talking his book. >> looking for the headlines? >> he owns lift. he doesn't like uber. he owns air b and b. it all makes sense. >> but the durability point when you look at the things he's invested in as well where they're sticky with government, very sticky with b to b type,

talking his book but investors tend to underestimate the effects. >> jon fortt? >> i think there's a sense out here we're moving into three little pigs territoryp whose house is made of straw, of brick. during growth times burn rates don't matter. people are look at the straw houses going up. isn't it wonderful. the housing. the big bad wolf is probably coming at some point and we'll get to see what the building materials are and i think the bcs out there don't want to be the one that has the portfolio full of straw houses and touting how great those are and now starting to talk durability. >> do you get a sense jon fortt the cycle isrtin to turn or still anything goes? >> well, you know, a couple months ago, a few months ago actually, right after whatsapp that i said i think we've reached the top of the consumer cycle. i don't think we're going to see anything bigger than the whatsapp deal happen. it's more of an enterprise cycle, enterprise companies tend to be more cautious, more mindful of things like burn

rates, box excluded perhaps, so yes, i think we are in a more cautious time but the question is, will we have the kind of shock that really causes a number of these companies to go over the sedge? >> eric schmidt talks about the step innovation like self-driving cars. what are the companies going into something that's unconventional people think is ridiculous, unfavored subsector. >> twitter payments. >> and then, after they go into it, everybody says oh, my god this is so great and then all these other copy cats rush in. messaging right now would be at the end of that hype sickle where everybody is trying to do something and almost a year after whatsapp got acquired. more specific to the products. >> we have to go. what else are you reading right now? >> i love those books. i just -- the schmidt book was fantastic i thought. i did work at google for a little bit. i'm giving it to my top 15 colleagues at daily mail. >> talking his book right over here. >> exactly. wait for that one to come out and send it to dominic chu for a quick market flash.

good morning, dom. >> good morning. kelly and gang. check out what's happening with gopro shares moving lower on the session off the session lows down by about 10.5%. a momentum stock up more than 200% since its ipo in june but there is a french journalist report that racing legend f 1 michael schumacher's traumatic head injuries were caused possibly by a gopro camera mounted to his helmet when he fell in a december ski accident. those shares as a result have taken a turn to the downside, accelerating down by about 10%. andrew, when we talk about gopro, this is a stock that was $98.50 last week. it closed yesterday at $85. the question becomes, how much is this french journalist story on michael schumacher and how much is just a down momentum trade. back to you. >> thank you, dom. that's the thing on the helmet because it sticks out. that's what the issue is. check on the markets real quick. things trading lower. >> you should have worn one of those yesterday. >> there were people doing that by the way. during all this volatility, the

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welcome back to "squawk alley." the voracious zombies back with the premier of "the walking dead" last night. don't know if you stayed up late for that. a night that has come to be thought as the hottest night on television. why are cable and network programs battling over sunday viewers and netflix break up the fight? here is jason, he covers web and television. what is it, give us the history? how did sunday night become so hot? >> well, back in 1999, hbo was looking for a spot to launch a new show called "the sopranos" and looked at sunday and said this is not a night that there's anything else on that this audience would want to watch. 15 years later every great show seems to be on sunday nights.

>> why has nobody tried to pick another night at this point? you would think -- it's overstocked with good stuff, too much competition. they would move to tuesday or wednesday? >> yeah. there's a method to the network's madness. first off sunday is a night that most people watch tv any night of the week. 125 million people tuning in to tv on sunday night. >> that compares what's like a wednesday or thursday? >> the numbers decrease and bottoms out on friday and saturday to 107 million. as school and work functions during the week pull people away from tv sunday is the night people are watching tv. >> is somebody in the pr industry spinning this story. cbs did this story a week ago, sunday morning or "60 minutes," who cares, viewership is down, aren't they doing to fight with netflix and on demand people. >> what's happening is that anybody who -- viewership may be down overall but anybody trying to program a dvr on sunday knows you can't fit all the great

shows on one night on to your dvr. you have cable, you have "the good wife" "the walking dead" which came back last night, and you have "homeland" new drama called "the affair" from showtime, all the quality tv. >> it's all marketing all going to be on demand in a few years. >> there is a prestige factor and also a big reason for premium networks like hbo and showtime they don't care if you watch on sunday night. you can watch any time during the week. but there is -- the gold standard is sunday night and something to be said. they want to point to sunday and say our best shows are on tv. >> will saturday night be anything? have you ever seen a good show on a saturday night? >> there used to be. "golden girls" back in the day. there was a night, that night has almost been abandoned. >> what i love watching on saturday night, it's been a while now. >> "cops". >> suze orman. >> that is true. >> friday has made a little move. "shark tank" launched on friday, right.

>> there and there are shows every night people are watching. think of the shows that get nominated d for emmys every yea the only one was "house of cards". >> netflix when they launch a show they do it on saunds or i would think friday night. >> friday night pacific time. there is really -- >> full weekend for the binge viewing. >> fortt you wanted to say something. what were you going to say? >> the big audience is on sunday but isn't it an old audience? didn't "murder she wrote" used to be on sunday because it was an old people's night. >> that is a great show. >> don't poor mouth that show. >> i watched it with my parents. the question is, is it more just getting it out there before the week starts when a lot of the younger people will watch later in the week? and then the people who aren't hard core fans, is it a sunday thing or early in the week thing? >> what's your thought?

>> could you hear him. >> no. >> he was asking is it an earlier in the week thing to get it out early in the week or sunday sh. >> part of the idea, setting the agenda for the week. you've had the weekend, the slate is wiped clean and then all of a sudden you have something to talk about when you go in monday at the water cooler. did you see "walking dead." see how great "the good wife" was last night. that's a big part. >> jason, thank you for being here. "murphy brown" was monday, "cosby show" was thursday night. "family ties" thursday night. >> "murphy brown." that was the best show. >> "mad men," "breaking bad" sunday has become the night. >> the internet has kind of become the night. on demand. >> that's exactly it. let's bring in simon hobbs as count down to the close in europe. >> we've been racing all over the place. a lot of concerns where we're

going with the economies. stock market fell over 4% in europe last week. but we've been up and down. depressing reading over the weekend in the german magazine "focus" when so much relies on the ecb to learn that the president mario draghi, finds it almost impossible. he no longer divulges his plans to wideman or convince him of his plans as the german would say no to everything. let me show you what shifted on the session today. semiconductors have moved to the downside. a couple downgrades on micro electronics down 5% over in milan. on the upside, broker comments on some of the global miners which have been hit bad recently and moved to the upside during the session. and one of bill ackman's funds actually started trading for the first time in amsterdam today. pershing square holdings priced at $25 a share. they raised about $3 billion through the ipo process to

basically increase the capital they have available and the wider share ownership. he told a news conference the fact it's trading in negative territory was good if it went up they wouldn't have priced it correctly. guys, back to you. >> simon, thank you so much. europe has been an important tale for the rest of the session. we'll see if that holds on closing bell. an inside look at the state of start-ups in this country. andrew sticking around for it. chairman and flicker co-founder katerina fink joining us. 135,000 people, 18 venues focused on the cloud. we will be live at sales force dream force conference in san francisco, next on squawk alley. traveling can feel like one big mystery. you're never quite sure what is coming your way. but when you've got an entire company who knows that the most on-time flights are nothing if we can't get your things there too.

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welcome back. since selling flickr to yahoo! our next guest latest venture allows users to share stories using their smartphones. joining us is caterina fake, welcome, great to have you. >> thanks for having me. >> thoughts first of all on the new iphone. heard a lot of people having problems with bugs on the latest operating system and that kind of thing. any issues? >> i have had some issues on my phone and i was one of the late adopters. i heard all of the rumors. i heard that it was actually going to be a difficult upgrade. i know that a lot of people had trouble because of the space that the upgrade took on your phone and i haven't gotten a

brand new one of the big fancy phones myself. so i'm still kind of exploring and new on these devices. >> you're one of the foremost thought leaders on user participation and contributions into platforms with fick er and other thing. when you look at twitter right now and people criticize it so much for not having enough user engagement and participation, do you think there's enough consumption to make it actually where it needs to be? >> yeah. i mean i have always looked at systems as a kind of like a layer cake. there's a very thick layer of contributors, there's an even thicker layer of participants, people who favor it, people who ask questions, tweet at people and then there's an even bigger layer of people pure consumers. i think a system naturally grows that way. a social media system is like some layer of contribution, some layer of participation and then just the people who are passively sitting there and watching. >> does twitter have -- does it have enough tiers?

the tiers big enough to make it part of our lives for a while? >> i think that twitter has done an exceptional job in cultivating the participation of media and the participation of, you know, companies and all of that kind of thing. but it remains to be seen if there's a shichbts -- you're right is the pound cake thick enough to support the frosting. >> when you think about facebook, you have people that are so active on it, 50% of people going on every day work that be like a two layers of very thick cake? does that break your rule to some exit tent. >> i mean, i do think that -- not to take the metaphor too far but i think that facebook is a very different kind of social network in that participating in it is required. twitter can be more voyeuristic, more -- you can read it like media. you can use it to sort links for yourself. >> what are these guys not doing that you see the opening with

findery. i would see ourselves being the next generation of development of social media. as we all know mobile devices are kind of the most kind of the thing that's growing the most. we were -- we started out at terminal, from a main frame and then moved to personal computers, laptops and then now everybody is holding dees vices. i would argue it's gone further than that and one of the reasons we built findery we saw if you look around you right now, how many screens are there? there are screens -- >> zillens. >> there are screens in the bathrooms, screens on the elevator, in the taxi cabs and in front of you on the plane. and so we've designed findery to accommodate all of those screens. they're about being in different places. so, you know, i do think that a lot of the media that's out there has been developed for a world in which people are on laptops or on devices but we're looking at the future towards the future. >> let's bring in our jon fortt as well from the west coast this morning. jon.

>> yeah. thanks, kelly. caterina, there's been a lot of talk over the past few days around issues of women in tech, satya nadella made comments about how women should or shouldn't ask for raises. you've worked with larger companies, been an entrepreneur, what's your take on the state of women's trajectory in tech right now? what needs to happen or is it a merit tocracy where everything will work itself out? >> i've been in this industry since gosh the mid '90s when i started and i -- my sense is that it has evolved and has changed and it has gotten better. i see there are more women entrepreneurs, actually getting funding. i think that there are, you know, opportunities for women have grown. th i do think that there's a lot of cultural issues, i think tech tends to be like a man's game. you do feel it in -- out there when you're raising money. you feel it sometimes when you're in certain companies. you know, my company is an outli

outlier. i'm a female founder, female ceo. i have a great number of female engineers on my team. i mean it's a very different company but i do think that there are more and more companies that are different companies and are kind of expantsing. >> one quick question because we're talking about women if you were to grade marissa mayer who runs yahoo! effectively runs the company you founded? >> i am actually in no position to give grades to marisa mayor. i think she's doing a great job. i think she is as a if you look -- if you actually look at the last few ceos that have been at yahoo! i was so happy when they picked her. the reason i was so happy is she has a love of products. she has an understanding of what people need and want and you can see some of the acquisitions she's made that she has a very product focus. so i give her -- i'm not going to give her a grade, a to f, but i'll give her a thumb's up. >> right. >> still may want yahoo! to buy

her company. >> that's true. >> that's true. >> next here, please let us know, caterina. if that happens. caterina fake this morning on a wide range of issues in tech. thank you so much. >> okay. touted as the largest software event ever. sales force dream eventic kicking off including hillary clinton, and josh lipton is live there this morning at dream force in san francisco with the details. josh? >> well, andrew, it might look and sound actually like a music festival, the crowds are forming, the music is blaring, but actually this is where sales force ceo mark benioff and a who's who of celebrities will be entertaining some 135,000 people over the next four days. today's schedule jam packed. a couple hours, benioff will do a fireside chat with microsoft's tony profit. a few months back those two companies announced a partnership. looking for any new insight into that collaboration and then

later today the paypal mafia are here. reed hoffman, jeremy stopple and max levchin. moeb knows more than those three about that rapidly trading electronic payment. the celebrity guest list this year bigger than ever. hillary clinton, al gore, musicians like neil young and will.i.am to unveil a new wearable device. this event is really a critical one for the cloud software industry and salesforce which this morning announced a few product called wave, the company entering that $38 billion analytics market and you look at salesforce stock not doing much this morning, hasn't done much in the past 12 months. talking about valuation the impact of recent acquisitions and if that company can grow in the future as it has in the past. today expect a lot of tech news, celebrity cameos. we will be here all day bringing you headlines as they cross.

back to you. >> all right. josh, look forward to it. thank you so much. straight ahead here, google making a major move into the big apple and it's all thanks to youtube. we'll explain a little bit. plus, paypal founder peter tiel's reaction to the split from ebay, coming up next on "squawk alley." ♪ the all new, head turning cadillac ats coupe. it's irresistible. ♪ ugh... ...heartburn. did someone say burn? try alka seltzer reliefchews. they work just as fast and taste better than tums smoothies assorted fruit. mmm... amazing. yeah, i get that a lot. alka seltzer heartburn reliefchews.

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is he buying this dip or is he running for the hills? why top tech investor paul meeks says the sell off in chips could get worse. earnings season again, big bank names on deck. we'll talk to a topped ranked analyst who will reveal the three fwhanames to buy before t reports come out. see you in a bit. >> thank you. the news of an ebay paypal split applauded by many including paypal co-founder peter thiel he joined "squawk on the street" and here's what he had to say. >> it makes a lot of sense. when ebay acquired paypal in 2002, 75% of the payment volume was on ebay. went down to 50% by '08, down to 25% today. the companies have naturally diverged. it makes sense for them to spin it out again and for paypal to be able to focus 100% on building good payment system. >> it may be apple pay launches this weekend, we thought it would be two or three week's

time. it's getting a more competitive environment. what happens to paypal within that? i mean it is a product of the merger you did with x.com, of course. >> uh-huh. >> does it need to merge, need to partner? >> i think mergers only make sense when there are real synergies when things -- it's not obvious what the synergy between paypal and the other business would be at this point. i think it makes sense it for it to be stand-alone company. >> you were about to say something about apple pay. >> we're headed towards a lot more payment systems on mobile phones. the mobile internet is starting to happen and we're going to see more innovation and change in the payment space around that. >> importantly, a lot of these payment systems, apple payments rely on having a credit card in the stream and commission that somebody is paying. when you talk and i've been reading about east africa which pushes payments by just standing mobile phones not even smartphones between people will the environment make a lot of the payment systems we have

redundant moving forward? >> there are these ways you can create a seamless payment system relative to the ones we have today. it's hard to get consumer adoptions. all the solutions are an inch deep, mile wide that make things better for everybody and those are often very good but hard to drive on a consumer adoption level. >> what do you think is the future for companies like mx and the changing technology. they're jumping and partnering with the apples and google wallets. what happens to them some. >> they keep growing. if they haven't been disrupted by now, the last 20 years, there's more credit. they're fundamentally driven by the credit card system and people are continuing to use more credit cards worldwide. that's -- it's on a growth trajectory i would argue. >> i don't know if you would credit carl i juan with what happened at ebay with enforcing the split. what do you think of his demand apple should increase its buybacks? >> this is always the

perspective these companies shouldn't invest in technology, they should be investing if their share price and that's always the -- >> i think the point he makes is that it's trading at eight times forward earnings if you strip out the cash when the s&p trades. >> that assumes that the iphone will be able to maintain its monopoly like profit margins for decades to come and there's a sense that this is quite unstable. but yes, certainly if the iphone stays as profitable as it is today apple is chief. >> you don't think he's the evil captain kirk? >> i don't like star trek references but i would agree with an dresy. >> i agree with peter thiel and the idea that the split made sense ultimately. as the payment volume ebay was sending to paypal went down the value of being able to operate efficiently and focus on just two to three things made sense. i think that's somethings the big companies have learned from startups. >> where does this mean we see paypal next? >> we'll see it as an aggressive company that does the things we've seen, apple and square and

what not do because they've been relatively not that innovative. >> was that a big short for apple? i'm an apple guy. i mean i -- >> from peter thiel. >> the timing remains the question i guess. >> always the timing. coming up next, the business of legal marijuana, right here in new york city. it's not legal here yet. we're live at the east coast cannibis expo 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. changing the way you think of retirement. in a we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better

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it's not legal. kate rogers live at the east coast cannibis expo in new york city to explain. hi, kate. >> hey, kelly. that's right we're here at the east coast cannibis expo. talking to entrepreneurs about how they are cashing in on this booming business. so a company we chatted with is called sciences using a drug which is an extract from the hemp plant, this product they say will help people with traumatic bane injury and concussions which is a huge issue in the nfl. we chatted with former player marvin washington who says once this comes to market it will have a wide array of benefits. >> a 12-year-old girl that plays soccer out in iowa can take it and a 28-year-old professional football player in atlanta or new york can take it. and it's not going to have any psycho active effects or give them an advantage in performance. >> reporter: now, advocates for

cbd say it's less addictive and easier on your internal organs. up next on "power lunch" we'll talk to a company making pot products for your pets. andrew, back to you. >> wow. for your pets. a lot of pets have anxiety. >> yeah. >> it's true. >> dogs have -- >> prescription for dogs. >> you're kidding. >> i'm not kidding at all. pet psychologists. >> there are not. >> anxiety? >> of course. >> no. >> nope. >> of course there's pet psychologist. >> what dog do you know doesn't want to get high. >> coming up, going making a move into the big apple thanks to youtube. we will explain what that means when we return with dogs getting high as well. back in a moment. you probably know xerox as the company that's all about printing. but did you know we also support hospitals using electronic health records for more than 30 million patients? or that our software helps over 20 million smartphone users remotely configure e-mail every month? or how about processing nearly $5 billion in electronic toll payments a year?

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your business is more reliable - secure - agile. and with responsive, dedicated support, we help you shine every day of the week. centurylink your link to what's next. welcome back to "squawk alley." in case you missed it that's what the kids call that. icym. anyway. youtube makes a move in new york city according to david carr, my pal of the "new york times," youtube opening a new studio in manhattan part of production facility and part video lab. the company hoping the new locations will bring a new pool of talent along with putting youtube closer to more traditional media content creators. you hung out there? >> i was just over there.

i think this might be a new space that car was talking about, the area they're opening up to brand an people who have at least 5,000 subscribers to their channel to do production. >> thoughts fortt on this one? >> new york is the spot. i mean amazon has got media there and now google beefg up too. does that mean should the networks be worried or hollywood? >> yahoo! is doing this. there's been articles over the weekend they want to turn tumblr into a place where creators can upload their video and stuff like that as well. it's been successful for youtube having the sort of stars that came out of nowhere that do different kinds of tech reviews or makeup things or things like that and put more people on to the platform using the facility on the west coast, in new york, all the places. >> make them more of a juggernaut. we should mention the nasdaq is almost positive having been down 1.25% earlier. do we call this the europe relief rally or what? this has happened since europe closed in the green on this day

when there's no action in the fixed market on columbus day. >> do you have a rationale? >> i was posing it as a question but that's my theory which is completely unsubstantiated. we'll send you to the "fast money" show. >> maybe they have an answer. >> thanks to andrew, jon fortt. as we hit noon time scott, over to you and the gang. >> thanks so much. welcome to the halftime show. let's meet today's starting lineups, stephen weiss, pete najarian co-founder of option munster, josh brown ceo of rid holtz wealth management and mike murphy, also with us today, is tony dwyer chief strategist at cancord genuity. stocks off their worst week in more than two years and the market making investors more jittery they've been in an awfully long time. our question today, are things about to get a whole lot sfwhors the drop in oil, cyclicals, small caps would seem to suggest they