♪ good tuesday. welcome to "squawk alley." john ford and i here. it's been tough sledding all day long on the markets. dow down 266. really selling off since the open. bob pasani is watching all the movers. >> four to one almost five to one declining on advancing stocks. the futures are down. 1.5%. something big happen overnight?

not really. just a series very small headlines that have collectively added up to a negative morning. you see we're just off the lows for the day. take a look at sectors here. materials are the ones to the down side. that's largely because of some negative comments. credit suisse. it's all down 1%, 1.5% roughly with materials the worst movers here. take a look at some of the big material names. credit suisse had a report out this morning basically predicting more of the same, weak demand. took down a few names that are in the group here. everything is down 3% or 4% in that group. even gm and ford. oil has been moving all over the place this morning.

about a $1 range. 2%, 2.5% area up and down here. most of the big names are to the down side. halliburton has just turned positive. weatherford had a proposed capital raise yesterday that got kaenksed. that stock was down about 10%. you can see it's come back today. most of the energy names are to the down side. finally, hope you are all listening to kayla at the bank of america meeting. their shareholders rejecting split splitting the chairman and ceo role. that's not having a big move on the stock, but most of the big names stayed in the financial group down about 1%. carl, i should note that we're going into the european close. you'll hear from simon, but most of europe is down roughly 2%. just off the lows there. back to you. >> see if we get any relief in about 28 minutes. thanks very much, bob. in the meantime, the reviews for the new iphone 6s are out, and after spending time with the iphone mossberg says it is the best smartphone out there, period. joining us this morning is walt mossburg, the co executive editor for read code.

good morning to you. >> good morning, carl. >> you say it is the best smartphone out there. you say it streams. you say, boy is it fast. walk us through what impressed you the most. >> well, i think the biggest fundamental change here and the thing that i think may become a core feature of iphones and maybe even other phones going forward is that they've actually added a pressure sensitive screen to this phone, and that gives you a whole new range of navigation. you know, they brought out the idea of multi-touch in 2007 with swipe and pinching and zooming and scrolling with your finger and all the things that we're familiar with now. now they're saying press the screen and in a variety of situations, you will find quicker navigation, the ability to go deeper into apps and that

sort of thing. 3-d touch, and i think that's a big deal. >> is this a more significant s update than the 5 to the 5s? the 5s brought us touch id. at first some people thought it was a big deal. i thought it was great because it got you into your phone faster, and many developers are starting to take advantage of that technology now. with 3-d touch and with the camera, live photos, et cetera, is this a more considerable s update than that one was? >> essential the 5 s was significant. i agree with you about touch id. this i think this might be more significant because this is really -- this 3-d touch thing is really -- opens a whole new vista of things that apple and its developers can do to get you navigating through everything much more quickly. i note you're going to be talking about cars soon. i can even imagine this working on the screen of a car.

it's a big deal. and the cameras are better. by the way, touch id, which you and i both like is like amazingly fast. you don't even see the lock screen now on this phone if you use the button to wake it up from sleep, it just goes right into the phone. it's that much faster. >> yeah. that was -- you say two weeks of heavier than normal use, never died on me before i was ready to end my day. even after 15 hours, typically 10% or so of battery life left in the tank. that's impressive. >> yeah. it is. >> people live in places where the phone is constantly searching for cell towers. that sucks the battery. your mileage will vary.

i have had good luck with the iphone 6, and this one is about the same, and i just don't have to worry about the battery on it. >> they're trying to make tweaks to aid people to use the phone. apple attacking that in a different way with 3-d touch. samsung has wireless charge and fast charging. the 6s versus the galaxy s6. is apple less differentiated or more than they were a cycle or two ago? >> i think they're more differentiated, and i think you can see, you know, look, look, samsung is a great company. their phones are quality

products. i'm not going to say they're junk or anything like that. they're certainly not. samsung does not control the software platform and the hardware platform. they cannot unify these things. apple does, and that just makes -- i say this in the column. that just makes an enormous difference, for instance, on this 3d touch thing, you can't just do that with software successfully. they've actually had to engineer a new kind of -- a new layer under the screen, and then put software on top of it. >> finally, walt, you do say it's a little slipper where i in your hand. you finally had to give in and get a case. you do point out the improvements in the camera was already so good that it's hard to make that even better.

then you said for the money you are spending, 16 gigs isn't much. >> right. i really think, you know -- here's an area where samsung has done better. samsung's base model for about the same price as this starts at 32 gigabytes. i think apple needs to move to 32 gigabytes for the base model on the iphone. the data we are getting from people on the base model shows they're not bumping up the gigabytes on the phone. they have live pictures. it's twice -- takes up twice as much space as the previous pictures. even if you have cloud and all that other stuff, i just think 16 gigs needs to be upped to 32.

>> that goes quick. >> yeah. >> we know that. walt, thank you so much. >> yes, it does. >> what a review. walt mossberg on the new iphone 6s. we are getting a little more information from the head of volkswagen. our phil lebeau has more on that. >> carl, they are in full damage control mode at volkswagen. just a few minutes ago martin, the ceo of volkswagen issued a video statement out of germany essentially apologizing again for the diesel deception, if you will, saying i am endlessly sorry that we betrayed the trust of our customers. he goes on to say let me make this very clear, manipulation of vw must never happen again. this was a full apology. there was no further insight given into where things stand in terms of an investigation or how quickly things will be resolved. remember, earlier today, guys, volkswagen said that an estimated 11 million diesel engines around the world have some type of deviation in their software, and it's going to cost

the company at least $7.2 billion to remedy this situation. that's a third quarter charge they'll be taking. again, an apology from martin winterkorn. no further details regarding this investigation. back to you. >> we'll watch that. phil, we know what's happened to their shares in frankfurt and how it's pressured some broader markets as well. phil leau back at hq. biotech once again under pressure as investors wait for hillary clinton's plan to take on what she calls price gouging by certain specialty drugmakers. our meg terrell is back at hq with more on that. hey, meg. >> hey, carl. biotech still explaining jitters over hillary clinton's proposed plan to cap what she calls price gouging in the specialty drug market. the reason for that, let's put this into context. look how biotech has performed over the last five years compared with the s&p 500. this outperformance is potentially what's making people just so nervous that something is going to come along to wipe that out. it's performed so well out performed the s&p for five years straight. folks are just looking for

anything to potentially -- to ruin that. when clinton came out with their plan overnight, she included several points that are making people a little nervous. the first thing is that she would give medicare the ability to negotiate a drug price. something it can't do now. she would incentivize research over marketing, allow importation of cheaper drugs from other countries, and try to expedite generics to market. this is something that the industry is very interested in, particularly for biotech drugs. she would shorten the exclusiveivity period on those from 12 years to seven years. however, it's also important to look back and see where all of this drug pricing concern kind of stemmed from. it started maybe in march of 2014, what people call a seminole moment in the industry when henry waxman sent a letter to gillead snes scientists over the cost of its help pits c drug. if you look back until that date in march, late march he sent the letter, gillead is up over that period 10%.

even though folks are trying to take a much closer look at what's happening in drug pricing, nothing has actually seemed to result from it. it's a lot of fear right now, and folks are really wondering whether all of this talk is actually going to result in anything. raymond james just putting out a note saying of hillary's plan, not going happen. back to you, carl. >> meg terrell, we'll watch that space again today. when we come back, a new report says an apple car is coming, and we could see it before the end of the decade. we're going to take a closer look. plus, microsoft launching office 2016 across the country today and a top executive from microsoft is going to tell us how it all works. we're still watching the markets. dow done 253. awfully close to session lows. "squawk alley" back in a minute. don't go away.

>> the dow down 253. close to session lows. the selling today has been pronounced especially in europe. volkswagen, of course, not helping matters today, but keep your eye on the dax. it's down 3.6. only open for 15 more minutes. we'll watch that. the biggest drags on the dow right now. utx, goldman sachs and boeing. jess cardiac the founder and editor in chief at the information joins us today. it's great to have you today. >> thanks for having me. >> so much to get to. let's start with apple. apple is nowak sell rating the timeline in which it's going to work on some sort of a car.

"the journal" reported it aims to have that out at 2019. about 620 employees working on this. the times tries to walk some of this back saying we don't know whether it's going to be electric, self-driving. so much in flux. your take? >> my take, first and foremost, what else are they going to do? they're not going to build airplanes, right? if you look at apple growing, of course they're going after auto. this is one of the most exciting parts of the tech sector. as for the details, i think there is still a lot to figure out. i also heard lately that apple had been talking to cmu and their autonomous car division before uber then locked that up. definitely the research phase. i think apple is going for it, and i think all tech companies are. it's going to be a while. i mean, 2019. it's 2015, folks. >> of course, apple was going to do a television, and they worked on it, and no television. couldn't just turn that the same way. >> i feel like not, actually.

i feel like. >> apple knows google will be there. microsoft thereby there. tesla will be there. i feel like this is not quite the hobby that the apple tv is. >> some are skeptical that apple doesn't have the mechanical engineering to make this happen at least on their own. right? others come back and say, well, that's exactly what people said when they were going to make a phone in the first place. >> absolutely. i mean, there are plenty of partners out there, so google has explored this space heavily as well. worked with a couple of companies like the fox con of cars on some of the proto types. i think apple has the resources to figure out how to do that. >> definitely would be a big market, a big juicy market to sink their hooks into. we are getting, by the way -- i just want to bring this up.

a statement from jamie diment on lloyd blakefein who disclosed that he has lymphoma. >> i wish my friend lloyd a fast and full recovery. he is blessed with a lot of love and support from family and friends, including me. my thoughts and prayers go out to him and his loved ones. of course, diment himself has gone through a health scare not too long ago. we just wanted to bring you up to speed on that. next up, microsoft beginning the world wythed roll-out of office 2016 today. one of the big features is real-time collaboration. letting people work on the same document at the same time through the cloud on something like microsoft word. shares of microsoft falling today amid the broader market sell-off. we're going to talk to the cmo later in the hour and see how it all works out. >> this is important because it's one of microsoft's. >> microsoft has built it in across.

they also have a new product in the suite called sway which allows you to take a presentation and format it automatically for maybe a tv screen or maybe like a power point presentation. >> excel is still the crowned jewel. a lot of people have tried to chip away at it with various features and new products, but that's still, you know, a must have for businesses everywhere. i think it's going to be fascinating with this release, microsoft is trying to move everyone to subscription, right? microsoft claims that they can get 2x as much revenue out of office users in a subscription model than the old school download model, and this is the beginning of that, and i think they're in a good position. you know, as they've tried to

get office on the iphone, you know, push sort of prioritizing more operating systems and just getting it out there, the product gets good reviews, so i think they'll hold on to what customers they have. you know, that new customer, that new person who isn't in the microsoft universe already, that's a tough sell. google is pretty easy in that regard. >> what are you using in your shop for productivity, you and your reporters and do you hear of anyone in silicon valley switching over to office 365, because it used to be microsoft was a bad word in the valley. >> i mean, i think google docs still reigns the world. i do think that microsoft e-mail app has gotten great reviews for the iphone. some people in our company use it as well. you know, that's an opportunity. you weren't hearing that a couple of months ago, so it's an interesting direction for them. they're doing the right stuff. >> before we let you go, information has a great piece on uber's back office operations, and the challenge of trying to keep up with this kind of growth

must be incredibly -- >> absolutely. >> -- tough. >> we had a report yesterday that unbeknownst to us uber is having major outages behind the scenes. a huge one happened in may of this year where the whole back office -- sort of back operation system went down. you know, this is -- this happens. this company is scaling like gang busters, but i think it's important to keep in mind we look at the headline numbers, the headline valuation. scaling a company is tough, and they're doing a lot right, but i think they're going to have to keep evolving their management and principles as well. it's a good read and profile of this cto and an exciting company behind the scenes and in front of the scenes. >> jessica, so good to have you as always. jessica from the information. when we come back, keeping an eye on the markets, and we'll try to gauge what the afternoon may bring with europe closing in just about 8 1/2 minutes. don't go away. it's intelligent enough to warn of danger from virtually anywhere. it's been smashed, dropped and driven.

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>> read code reporting that axle spring ser closing in on a deal to buy business insider for about $560 million. axle springer bought a minority stake back in january, worth about $25 million. read code says a possible transaction could close winning the next few weeks. we did reach out to business insider, founder, and ceo henry, who has come on other times, but in this case he did decline to comment on this story. a lot has been written about henry's trajectory from wall street to being in the securities industry to this. this would be payback in a big way. >> $560 million would be an almost unprecedented exit for the sort of web 2.0 or digital era, whatever you want to call it publication. this sofsh publication is facing enormous challenges. bi has managed to grow traffic, to diversify, and have different

kinds of offerings and different subjects -- you didn't expect to see it with the exit than some people were talking about for buzz feed a few months ago. this would be an amazing transaction. i'm not at all surprised wash. >> especially when it comes to business and financial news. not the easiest place to get a seat at the table. we're going to watch that closely. in the meantime, europe is about to close in just under four minutes, and simon is back in post 9. what a day, simon? >> the value destruction is absolutely extraordinary. i mean, europe again was the center of the selling on our markets here in this country today as it was last friday.

>> glen core gets a lot of attraction. let's have a look at where we are on that stock price. here you see basic resources in europe so far this year down 31%. this stock down almost 70%. by my calculation, $50 billion of value. that's been destroyed in that particular move down. if you are talking about copper, arguably glencore. meantime, on the question of value destruction, the ceo of vw who has issued this video release on its website within the last 30 minutes, in which he said that he was endlessly sorry for, it would appear, deliberately misleading regulators around the world about vw cars, but he will not resign. let's have a look at the chart of vw and porsche. porsche is the parent company of vw. vw alone, by my calculations

this week, has lost $30 billion. now porsche's other cars in this country are going to go through checks arks coringed to the detroit news, and so it goes on and on with the asians now getting involved. it's interesting that the french finance minister today in europe said that he wanted now a europe-wide investigation into the automotive industry, and that's another reason why you see daimler and feeat and renault and bmw down. there are very few members of the europe stock 600 that are in positive territory. now it's over to mario who tomorrow as ecb president will actually be in front of the european parliament. if he takes the opportunity to talk with expanding qe or either through the date or through the intensity, this would be the opportunity that he might take. we'll be talking about that tomorrow morning. guys, back to you. >> thank you very much. when we come back, the next

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e.u. ministers are meeting in brussels to discuss the ongoing migrant yisz?

the meeting is going to focus on proposals to relocate 120,000 refugees, and that is in addition to the 40,000 that have arrived in greece and italy. it is europe's worst refugee crisis since world war ii. groupon plans to cut 1,100 jobs, mostly in sales and customer service operations. it includes seizing operations, including puerto rico and thailand. the president of china arrives this morning in seattle. is he scheduled to tour boeing's largest factory and the microsoft campus. later in the week he will attend a state dinner at the white house and speak at the u.n. unfortunately, that means he won't be able to attend a very big birthday party in southwest china. pan pan turns 30 today, happy birthday. he is the world's oldest panda. he says it's -- they say it's the equivalent of basically that of a 100-year-old human. pan pan has more than 130 offspring. that's a quarter of the world's

captive bred panda population. we hope he has many, many more. that's the cnbc news update this hour. back to "squawk alley." you guys, carl. >> you never know, there might be panda news once the president makes his way to d.c. we'll find out. >> we'll be watching the panda cam. >> yes. in the meantime, the dow having some struggles here. down 258. all other components in the red. microsoft's office 2016 making its worldwide debut today. the latest apps, of course, paired with windows 10, but not just windows 10. there are also versions for the mack, for many mobile operating systems, and devices. let's take a closer look at it. now, chris is microsoft's chief marketing officer, part of the senior leadership team. chris, it's a pretty big deal, and i remember talking to you years ago when office 365 was first coming out. you said it was going to be good for microsoft because everybody

would be on the latest version getting the latest features, and even though people might pay a little less up front, they would be paying constantly. consumer subscribers are signing up at a million per month. how is this doing for microsoft financially? is it doing what you expected in the first launch of this product years ago? >> well, john, thanks for having me. it's good to see you again. as you say, it's a big day for us with office 2016 coming to market, and we're thrilled that consumers as well as business customers are really embracing the subscription model as a way to get new innovation on a monthly basis, and as a way to stay secure and always up-to-date. it's obviously great for microsoft as well. the long-time value or long-term value of a subscriber is much higher to us and the customer satisfaction is much better when people are using the latest from microsoft.

>> what's taken so long with the collaboration features? google docs, which you have done a pretty good job beating back the advance on, has had some of these features for quite a while, but you don't have it now that you can see who is working on the documents and can you see the changes. why now as opposed a year or two ago? >> we've had it on our web versions for three years, but it's lovely to be in the rich client of word and just click that little share button in the upper right and invite anybody you want to work with you on the document, and then start a skype session right within the word docume document. >> it's taken us a while to bring them to the rich clients. a lot of our customers live in excel, they live in word, they live in power point, so we think this is really leapfrogging what google and microsoft have done in the browser to bring it to the rich clients in a beautiful way. >> it's not every version that you guys introduce a new actual

product to the suite, but you have introduced sway, which is kind of hard to explain to people, but you are able to show a presentation in many different formats. if somebody wants to read it on their tablet screen, there's a version for that. if you are doing a presentation, you want to show it to a room full of people, there's a version for that. the software does it for you. what impact do you expect this to have on corporate adoption and perhaps for the bottom line? >> yes. we're certainly thrilled to be bringing sway to our 1.2 billion office customers today. it's an interactive story telling tool. the fun thing that we're seeing is that students are really just latching on to this, and the things that elementary school kids are doing, the creative types are doing with sway is just sort of mind-blowing. we think that it is sort of a new style of authoring for phones and tablets and for the cloud era. what word and power point were to the pc, we feel like sway really is to phones and to the cloud, and so we're excited to

bring it to the world and get people started. >> chris, maybe you can explain this to me. now that there's no one obvious event when you get a new version of office and it comes in a box, what is it that causes people to upgrade from the free app version that is you have out there on ios, on android, on the web. what causes them to pull the triger and say i'm going start paying because i want these extra features, and at what rate are you seeing that? >> yes. for us we're thrilled that 150 million people have downloaded office for their ios or android devices. for those small screen experiences, office is a real convenience. once you move to a larger screen, 10, 11, 12 inch devices, a laptop, a bigger tablet, that's where the value of paying for the subscription comes in. the pay wall is really more about moving to the bigger device and the subscription is all about having all the bits across all your devices than it

is a particular single feature. we're seeing that a terabyte of one drive storage is really a huge uplift to somebody when they want to move to office 365 as opposed it being a particular feature on the iphone that will make the move over. >> that's what got me to pay, but i sort of worry about that big screen thing because so many people in emerging markets are using the phone as their primary device. thanks so much for joining us. good to see you again. >> great to see you, john. thanks for having me. meantime, it's been a busy day in charlotte. bank of america shareholders rejecting a plan to split the ceo and chairman rules this morning. brian moynihan now speaking with our own kayla a few moments ago and kayla joins us live. >> hashgs carl. well, immediately following the approval of brian moynihan as both ceo and chairman at a top bank of america, he as well as the company's lead independent director spoke to reporters on the record, and i want to share a few of their comments with you. first, brian moynihan said it

was good to have the support of shareholders and that he and the board learned a lot in the process of making this change to the bilaw bz a year ago, conversing with shareholders over the last year, and then putting this issue to a volt and realizing exactly what it was that shareholders wanted. he called the board in its current state strong, experienced, and diverse and when asked whether there would be changes forthcoming to the board before the annual meeting next spring, he said the bank is always looking to refresh they will make sure they're on the same page and in sync. when asked, though, why they weren't in sync on this very issue last year when he made the change, both said if this issue was put in play by the fact that

chad holiday, the chairman last year, said he wanted to be chairman of royal dutch shell. that set this in motion. he said the optics of not putting brian in that role would be worse than him taking a temporary chairman role. he said that the board wanted to show its confidence in brian, and, of course, the 63% approval rating, that confidence, guys, is clear. back to you. >> all right. thank you very much, kayla. what a busy day down there in charlotte. when we come back, a lot of red on the screen. a lot of the major averages down more than 1%. dow down 269. we'll get to all of that in just a moment.

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coming up on the halftime show we're all over the sell-off today. gopro shares down almost 50% this year alone. we're going to speak exclusively with founder and ceo nick woodman if he can win back investors. we're also following the biotech sell-off with the top rated voice on wall street. isi's dr. mark schoenbalm as the controversy grows. see you in a little bit. >> looking forward to it. meanwhile, this is an interesting call. the smart hold platform has filed for bankruptcy. this is a company that raised more than $150 million since its founding more than five years ago.

they are selling off we think. wink will be acquired. the sale of had and a blog post on the corporate update. this is a company in an area that's supposed to be hot backed by -- raised a bunch of money, had a debt raise at the end of last year, i believe, but they are filing for bankruptcy. makes you wonder if it's a sign of the times given some of the start-ups you see. >> they seem to have so many things going. big partnership with general electric and high profile product roll-outs. a ceo who you could argue was media savvy, and ben kaufman who is now gone. that is a surprise. as i said on twitter, on a day where you have groupon with layoffs and reported budget cuts at espn. volkswagen the story of the day. it is a rough day for corporate news. >> burn rates, you can get burned. >> yes. >> with that the dow is down 274. let's get to rick santelli in chicago and get the santelli exchange. hey, rick.

>> hi, carl. you know, i have been trying to have a theme today, and the theme is overfunding. however, it's various policies throughout the globe, over funding has created lots of volatility in the energy sector. >> it's an amazing nitrogen. >> versus two-tenths of a liter of gas. the problem is it creates a huge amount of stress on the car and the engine. you can only do it in short blasts. very similar to stimulus, and

the over funding issue where are you putting capital in distortions in supply and demand. even though the fastest way from point a to point b in 2008 would have been to add a little nitrous, to get a little easy energy to get the energy going, the stresses and the imbalances that are caused, never a part of the discussion ever. it's viewed to be a priceless, riskless endeavor so we can continue until we get more confidence in the economy. bursts of stimulus that end up in piles of debt. back to you. >> thanks, rick. then coming up shares of pandora falling today, but after scoring a major copyright wind. tim will join us in just a moment.

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premarkets suggested this would be a tough day. it has turned out that way. down down 264. almost better than a percent and a half with all the kol poenents consistently in the red. it's going to be an interesting afternoon. in the meantime, internet music service pandora scoring a big win this week. the copyright office ruling we'll consider new streaming royalty rates agreed upon by pandora, and in the music agency merlin. josh is in san francisco with

founder tim westergren. >> so, tim, thank you for joining us. as carl mentioned, i want to start with the news, which is that it looks like investors, analysts becoming more confident that pandora is going to secure the royalty rates, the terms the company wants. walk me through, tim, what that's going to mean for the business. >> it wasn't surprising to us. this panel of judges is looking to be thoughtful and deliberate about it, and i think we're all very confident will will be a rationale outcome come december, which is the expected time. we have our sights set way beyond. this is just a blip on the radar. we're looking much on the horizon. >> i do have one question, though, tim. i hear analysts ask, what if that decision didn't land pandora's way? you know, you didn't get the rates, or the rates were higher. would that mean for your business, look, more money to higher talent, higher engineers? walk me through how you think about that? >> it's obviously very important decision for us, but we're not concerned about rationale outcome. it's clear there's been a lot of precedence set that have bounded the outcome, and we can handle

kind of a range of outcomes. it's getting increasingly confident there will be a nice outcome. we're looking forward to being able to invest, have certainty around rates and we're really poised to enter really interesting new era for us and for the business. we're really excited about that. >> when you, tim, about this new era, let's talk about how you are going to grow this business, and one thing i have overseas. right now australia, new zealand, the only markets outside the u.s. you look at spotify, though. they're in nearly 60 markets. does that concern you, and how do you think about grabbing more of that global share? >> well, our ambition is clearly to be global. we are in australia and new zealand. we see the appetite. it's clear there. it's a matter of getting the rights, which we're working on. we're confident we'll get there eventually. you know, we've been at this for 15 years now. it's kind of been 15 years of very intense r & d on the product and monotization, and it's the marketing platform for

musicians. we think we're about so to start an era where musicians will be in power. tens of thousands of artists use these platforms to really sustain their careers. >> so much competition here, tim, and we talked about that mother of marketing platforms. is that the competitive edge you have? i'm interested in apple music now. it's been out there for a few months. what kind of impact has to happen for pandora? >> very little. first and foremost, the differentiation is the service itself. we figured out how to effortlessly deliver a wonderfully delightful personalized listening experience, and that is fantastically hard to do. we've been at it 15 years, and it's a kwef technology investment. it's also the data and usage we're getting back from listeners. $60 billion plus that have created this engine that is just uncannily good for selecting the right music for the right person. we've been doing that for a long time.

>> what's the competitive advantage? how are the services different? >> well, we have seen this movie before. we've had a lot of pandora killers over the years, and i think that what the competition discovers time and time again is just how hard it is to create the station that with very little effort will just nail the listening experience for you. not just for hour one, but hour 100. not just the first day, but the first year. that takes an awful lot of investment and listeners are forgiving about something that doesn't play the right songs for you. they don't wait for you to get it right. they're gone. with each passing year, each w

new -- >> tim, listen. i appreciate it. carl, john, send it back to you guys. >> very nice. josh lipton, thank you for that. when we come back, today begins what might be the most important visit of a chinese leader to the u.s. in a long time. we're going to tell you what is on the agenda in just a moment.

chinese president ping set to arrive in seattle today for a major u.s. visit wrush our michelle caruso cabrera is live with the latest. good morning, michelle. >> good morning, carl. he is expected to arrive in about a half hour here in seattle. going to be here for a couple of days before he goes on to his official state visit at the white house on thursday. this is a prequill where he has a lot of big meetings planned with the who's who of american ceo's, whether it's the ceo of app apple, general motors, brookshire hathaway, et cetera. on the agenda a lot of key issues. it's a controversial time for china when it comes to their economy. cyber warfare, cyber espionage very much at the top of the agenda. the ultimate goal, perhaps, at the end of the state visit, do they put out a statement about the cyber rules of the road? in the meantime, while is he here in seattle, he is also

meeting with governors as well. five u.s. governors. believe it or not, one of the americans who knows president ping the best, the governor of iowa, terry brandstadt. they've known each other for 30 years back he was a much lower level bureaucrat. president ping actually went to iowa, spent two weeks there crisscrossing the state on what was -- he was a governor of a hog raising area of china at the time. the governor has stayed in touch with xi jinping. it's an economic thing as well. >> china has become a major trading partner. they purchase more soybeans than all the rest of the countries in the world. we're the leading soybean producing state in america. 30% of our soybeans go to china. they also recently a chinese company purchased smithfield foods because they want a safer, reliable supply of pork. they're not only our longstanding friends through the sister state relationship, but also we have a personal

relationship with the president of china and they're a major trading partner for our country. >> so that economic relationship has been very fruitful, for example, with iowa, but as we know, guys, it's also caused a lot of havoc lately as we've watched a potential slowdown in the chinese economy and what it's done to the u.s. markets in reaction to that. coming up later today we have an exclusive interview with hank paulson. he is hosting a big meeting with xi jinping, and we'll talk to him ahead of that meeting coming up later on today on cnbc. back to you, guys. >> not a lot of people know that xi engine pings actually spent time in muscatine, iowa. he was a 30-year-old guy trying to learn more about american agriculture. part of a delegation, and they tried to make the home that he slept in somewhat of an attraction, a tourist attraction to demonstrate some of the cooperation that's gone on between the two countries even with all of the troubles now. keeping an eye on the markets. one gainer. one gainer in the nasdaq.

adobe is barely flat. awful lot of selling. people not taking any prisoners. >> grub hub taking on the chain. down 6.5%. the number of enterprise names, including western digital. >> let's go to headquarters. the judge and "the half." >> joining us from the floor of the new york stock exchange. princeton securities group for a game plan that looks like this. biowrecks. after candidate clinton's tweets sank the sector, what now? we ask top rated analyst isi's dr. mark schoenbaum, and nick woodman, an exclusive today on gopro's growth. the stock's big drop, and the barrons takedown. we begin with the global