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good monday morning. welcome to "squawk alley" for a monday. john ford, kayla, as well as myself. remembering david bowie on a tough morning, loss of a major, major artist. the dow's down about 24 opponents. we're watching crude falling below 32 as u.s. stocks struggle for gains after the bruising start to the year last week for some tech investors at least. will the blows keep coming? ali an's portfolio manager walter price and lead analyst mark mahaney. good to have you. >> good morning. >> mark, in a neighborhood here now where everything seems to

pivot upon the price of commodities, on chinese regulators overnight, and in the end, some would argue, really doesn't matter what amazon's operating margin is going to be going into earnings season. do you agree? >> amazon is a bit of a bellwether for the internet groups of a whole as is facebook and alphabet. probably more than any other stocks in the group. amazon, what people want to see are operating margins rising in the north american retail business. and secondly, is that momentum we've seen in aws sustainable that top-line momentum? we think the answers to both of those, we have a bullish bias on answers to both of those questions, so we like the stock, and it will matter for amazon stock and for the sector. >> walter, there's been this idea that as some appetite for risk goes away, there's going to be this shift that we've been thinking about and talking about for a long time. the shift from growth stocks to

stocks that are companies that are very profitable. is that what's happening now? >> no, i think it's basically people are worried about the expectations for 2016 and the estimates for 2016. so, you know, as we get into the forecasts that come in the first quarter for 2016, i think people are a little worried that companies are going to take down all the macro conditions going on. >> i look at how the stocks are doing. netflix is actually up 4% over the past week. ebay is down just 2%, outperforming apple. there isn't total rhyme or reason to the direction these stocks have been moving in. i wonder if you think once we get some earnings numbers, some solid numbers and outlooks from some of these companies, maybe

some of this will shift to what's real versus what's feared? >> john, let me just pick off a couple of points. one, netflix, we had very specific news when they announced three, six, nine months ahead of expectations they completed their global rollout with the exception of china, that was faster than expected. in a way, you kind of derisked the netflix earnings number because now we're focused on 2016 international launch story. hard to know how well they'll do. to date, they've gone very well in almost every international market. ebay may be a sign if you want a defensive internet portfolio, it's hard to say that, but you can. you could put in low p/e, some stocks with dividend yields in there. so expedia, probably an alphabet too. so we're going to have a real negative take for the year, ebay would be one of them. >> walter, you agree? are there any spaces or names in

which you are more willing to sell a rally than buy a dip? >> no, i agree with your premise, that as people see the forecast in 2016 and i feel more comfortable about what's real and, you know, i think companies will be conservative in their forecasts. investors will be a lot more comfortable buying these stocks. so i think you get a bid in these stocks and you get a bottom in these stocks as you get these forecasts come out and as people get comfortable with the growth rates in 2016. >> the problem from an earnings perspective is that tech companies now make up 20% of the s&p 500 profits and if you see a correction in tech profits, then the overall s&p, the overall earnings picture, doesn't look too good. wa what's the risk that tech drives everything down this time around? >> well, i think there is still

very good growth in tech. tech's growth really depends on new markets and lower cost ways of doing things. if you look at what's driving facebook or google or amazon or microsoft, it's really new technologies associated with the cloud or with video advertising on the internet. those trends aren't going away. those growth rates aren't going away. they may moderate in our slower growth economy but i think tech has still got good growth, much better growth than most sectors in the chi. >> finally, mark, i'm thinking of a know that was published middle of december titled "fang will end with a dang." it argued mostly stocks that have the outsized gains for any year really in any industry hardly ever repeat the second year. i wonder if that weighs on your models as you head into the first, second quarter? >> it certainly does. you look at stocks that outperform like that, you assume

that they can't, you know, continue to perform. what our call has been is we're sticking with our fundamental guns. we think we're going to see consistent revenue trends, demand trends, especially for the leading internet companies. those fang names, all four of those, we think will be relatively consistent. you've got instagram modernization really kicking in. alphabet, what you've got is a real interesting catalyst coming up. netflix, it's all about the international market. so we stick with them. >> you're stubborn, if nothing else, mark. good to see you, mark and walter price talking tech on this monday morning. when we come back, a lot more coverage on china and its impact on u.s. markets. former ambassador to china jon huntsman will join us. tesla working on a new

self-parking car. when you could see one on the road. and more pain at yahoo! with reports saying marissa mayer could plan significant layoffs. a former ceo and interim ceo at yahoo! will join us to break it all down. "americans" to take us to break here. ♪ what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. td ameritrade.

quick news alert here. wednesdayan powerball jackpot n

stands at $1.4 million. the lack of a winner on saturday. i assume we're going to do a pool, right? >> bought mine yesterday. >> you're on your own, keep the whole thing. >> the texas news release says it's a world record. >> unbelievable. speaking of which, let's bring in john steinberg, former daily mail north america ceo. you already bought your ticket. >> i have. a few hundred million got won. my wife wanted me to buy $20 worth. i said, if you're not going to win it with $3. >> you buy everything we talk with on "squawk alley." >> everything, i buy everything. >> apple music now has 10 million paid subs. half as many as spotify. which crossed the 20 million mark back in june. a new report from the journal says neither apple nor its media partners have any idea how many people are actually reading apple news. the service launched back in

september. shares still -- they were aren't 98 earlier this morning. trying to hold that $100 level. your thoughts? >> let's start with the music thing. a service i've been very negative on. i still think is unbelievably confusing. six months in, they've got half of spotify. this goes back to my argument of multimillion-dollar things buried inside apple they don't get credit for. apple has something that's half as good as that right now. another few billion dollars on apple's market cap. >> half of what spotify was back in june. we got to assume it's grown since then, though they haven't put out numbers. i think the question is -- >> communications insider told the second half of 2015 was our fastest subscriber growth ever. they are saying it's the best half for them on record. >> he reiterated that sort of language to me at ces last week. is the ground compounding more? three months from now when the new iphone buyers from the

holiday season have rolled off their free apple music period, are we going to be closer to 14 million paid subscribers at that point? how much do people love it is the question? i'll back off on the topic because it's the apple news thing i'm really -- >> this is arguably a terrible business. every time you do better, you pay more royalties. making already a bad margin business for spotify worse. this is a way apple can push more people out of its space. create more lock-in on its platform. >> i want to get to news because this is really bad. if you're three monthses in and you just have figured out you don't know how many people are reading your news product, i mean, come on, apple has a really bad track record with this type of product when it comes to services. maybe apple music is turning that around but from the interface perspective they're getting lots of criticism. i don't love spotify. i don't love amazon music though

i'm using it. this news product, they really need to i think get on top of it, make a number of changes with it. i've tried it. it's not sticky at all. it's too hard to do things like share effectively in it, like see what other people whose judgment you trust what they're reading. those are the sort of features i think would change this game. >> right now, you have apple news, facebook instant articles, snap chot discover and google amp, google's effort to accelerate the mobile web. all the news you consume will be inside these platforms. and ultimately as a publisher i can tell you every time we go on to a new platform, either single one, every vendor, there are hick yops so this is part of that apple beta year. they did launch things, were imperfect, but like everybody else in that regard. >> overestimating the audience or underestimating it? >> clearly overestimating it. a false sense of hope you

overinvest where you need to be. advertising is rife with very poor quality ads. these are high quality platforms. i'd rather have one of these top leading social networks monetize what i can't sell myself than rando advertising vendors. >> self-driving tesla can now park itself. the company releasing a software update giving its model s the ability to open your garage, drive inside, park and shut down. they unveiled those changes yesterday, and said, quote, i think within two years you'll be able to summon your car from across the country." he did qualify that two years might be overoptimistic. >> the only person you're putting at risk if you decide to do that is yourself. it comes as the company is now restricting autopilot away from residential streets. so you can only use autopilot in a road with a center median and

certain other qualifications because there are questions about whether this technology is advanced enough to actually put others in danger or whether it's something that's safe to use. >> the beauty is the autopilot. >> i didn't mean to say the autopilot. the software update. just the fact your car is like your phone. i guess your wifi at home is good enough. i'm kidding. the fact that cars can be updated with software features this way without having to take them into the deal, it is certainly the future, it is amazing. >> the problem with elan musk is you don't know what to believe. half the time he says crazy things he's actually able to achieve. the other half of the time, he makes overly rosy predictions about how quickly he can do something. and it's a bit of a strategy. so when he writes in a press release your tesla will be able to drive anywhere across the country to meet you charging itself along the way, if i heard that a year or two ago, maybe i would have believed him. now i think he says these things

and he's just sort of -- i don't know, it's pr, it's shock value at this point. there's no way that's happening any time soon. >> fine', amazon topping netflix in this year's golden globe. won two awards for "mozart in the jungle" and "transparent." netflix came up empty. it did get a ton of nominations but fell short this time around. amazon got as many globes as any network and they've only been at this the for a year. >> i want to talk about usa and "mr. robot." won in its category. christian slater got best actor. very much an over the top geek show. everybody watched that show streaming, over the top. i think if anything, it's showing how a very traditional network like usa can be an amazon or netflix with a show or two. the exciting thing we learned from last night is you break out now on these over the top platforms. >> as the threat rises from the amazons, from the netflix, do you think the networks and these

cable companies are going to start rising to the occasion? >> look, i just came back from ces and there were two conversations going on. one was the hardware that everybody was doing and the other was over the top, over the top, over the top. every telecom company, every media company, every hardware company is talking about how to deliver contact to people over broadband and when you see usa win doing that. netflix had a rough night but still obviously things going well. future's happening more quickly than ever. >> when it comes down to it, the traditional networks, they have a lot of wins. we don't talk about them as much here because they're not as connected to new technology but maybe last night was a reminder. when people are watching i don't know it's in the nbc family, "the voice," that's a lot of people, okay, and it's counted. so we can't act like everything is just happening on netflix and amazon. >> you know how many awards went to broadcast television? >> right. >> none. >> but people are still watching it. >> my argument is the big cable

winner was not even a cable winner, it was an over the top winner. i think it's much worse. when you look at the number of new entries. amazon, jeff bezos kind of running the table. a guy who sells discounted toilet paper and wasn't even in the entertainment business a few years ago. that's scary if you're an incumbent, better get moving. >> perhaps one of the reasons we care so much is we don't have any other metrix to judge amazon and netflix by. so all we can really talk about are the awards. >> the ratings are so far down. there's an article in "new york times," they're not even replacing tv shows now because what's the point, the ratings aren't better for the replacement show. so soon there won't be ratings. >> you've got some news. >> i joined a board of a leading millennial site. it was founded by brian goldberg who was the founder of bleacher report and i've joined their board. 40 million uniques. they grew their revenue from 1 to 10 million in the past year. so one of the very exciting

media companies out of new york. >> you're not a millennial woman for the record. >> but i'm a parent. >> not even a millennial parent. your purchase of buzz feed and purchase of elite daily. >> i'm just there to help sell ads and do video stuff. i may ask to guest blog on romper because i have lots of parents and craft-type things i'd like to advise other parents on. >> not altogether though, not drone flying with the kids. >> congratulations, john steinberg. another quick news break. >> making some executive changes and a change in its guidance as well. bob huggen is the ceo now. he's going to continue with the company but he will be the executive chairman. there's a new ceo that is coming in. his name is mark ellis. he will be the the new ceo. in terms of guidance for celgene, they're predicting the full fiscal year 2015 will come

in below estimates. down now almost 5%. kayla, back to you. >> thanks for that update, sue herrera, back at news headquarters. another exclusive interview from the health care conference, the ceo will join us live in just a minute. shares of fit bit having a rough day, down 13% and falling below its ipo price of $20 a share for the first time.

a big news week for the health care industry with jpmorgan hosting its annual health care conference in san francisco. let's go back to meg at the conference who is live with another special guest, the ceo of novartis. >> thank you for joining us. there's a lot of questions about drug pricing. there's a lot of uncertainty in the industry. i want to ask you about cancer specifically.

novartis sells a transformational drug. you're working on immunotherapy. where would you say we stand in the fight against cancer now? >> it's an amazing time in cancer research because the explosion of data and deep sequencing of the human genome has allowed us now to target cancers in ways that were never possible before. so you're seeing a tremendous explosion of new technologies like the pd-1 checkpoint inhibitors or like our program in t-cell technology. i think we're on the verge of really getting after some cancers that historically have not been addressable. >> as we're there, there's also this tremendous focus now on drug pricing. i'm curious to know how that is changing if at all, how you do your business. is that affecting the way you are pricing new drugs? >> it is changing. if you look at oncology, where it's going is going to be combinationer therepies. as we start to identify which of these tumors are there,

combinations are going to be important. we have to think about a different kind of future pricing environment. and one of the things we're looking at is how do we start to move away from the transaction of selling the pill towards one of outcomes? where we're all looking at the value of that drug and getting reimbursed, at least partly, on the outcome we deliver. >> i have to ask you about glevak because it's expected to go generic this year. that has been a drug that just has transformed the lives of patients with chronic myeloid leukemia from a death sentence to a chronic disease. it has been singled out by doctors for its price, tripling over a decade after it was approved. how do you speak to that? how do you justify a tripling in price? >> one of the things is that remember when we first launched

glevak, it was just for one indication, chronic myeloid leukemia. we continued to study the drug. we continued to show that the drug was valuable in other indications within cancer. and so that -- we needed to be reward for that innovation and we were pricing according to that. so i think if you think about cancer pricing, you think about the value we're creating. remember this is a deadly disease. innovation has to continue to be reeb warded or we're just not going to be able to see the kind of breakthroughs we've seen even in just last year. >> are you concerned the political environment is going to really change that equation for you guys, the fixation on this issue, especially in an election year here in the u.s.? >> i think it all comes down to how well we are innovating. so if we're coming u.e ing up w breakthroughs in medicine that can turn, for example, like

chronic myeloid leukemia, into a chronic disease from a death sentence, i think that's going to be rewarded. some politicians that talk about drug pricing, even they agree we cannot jeopardize innovation because if we do, then we're not going to have the kind of advances that everybody knows is possible with the explosion of data and the explosion of technology. >> i want to ask you about immunotherapy. you've done a deal today in immunotherapy. how big is this market going to be? specifically cart e? >> we have an important program, in acute lympha leukemia. we think this is going to be a big new area because we're seeing unbelievable responses. we have children that have a.l.l. that have been given this therapy that are in remission years after they got the

therapy. because what happens with cart e, you know, we take the cells out, we engineer the t-cells, put them back in the body and they replicate so they continue to seek out new cancer cell that is emerging and wipe it out. so we get this incredible persistence. so i think it's going to be a big market. >> so many more questions. we'll have to leave it there for today. thank you for joining us. back over to you guys. >> all right, meg, thank you so much. let's bring in simon hobbs here. countdown to the close in the uk and europe. just less than 60 seconds. >> a decent bounce after last week's fall but that's been erased as we worked our way through to the end of the session. volkswagen, we're looking closely at what happens in detroit, partly because at the motor show they're expected to announce they're extending the good will and also reports they may have come up with a new catalytic convertor that may appease regulators in this

country. volkswagen is up 2%. worth pointing out against the backdrop of the big deals, shire and baxalta, $32 billion. the premium it's paying. a lot other bio techs within europe are also down. partly because of some downgrades we've had come through today. partly because we've had, for example, a big genetic drug tester came through with disappointing results last night, so that sector is moving to the downside. also on the downside, you've had a conviction cell by goldman because of the amount of debt they have. they believe the dividend may be in some question. you're adding to that very stark move down that you've had there. mean time, worth pointing out the ceo of electrolux who became something of a regular on this show is now leaving as a result of failing to buy the business or failing to get it past the

doj. he will leave at the end of the month. ge it would appear has other buyers and is enforcing the break-up fee against electrolux. finally, let me mention what is happening in spain. as you may have seen over the weekend, the cat catalan did a deal that at the regional level avoids new elections. they will have a majority in the regional parliament in favor of breaking away from spain. at the national level, the socialists are still unwilling to do a deal with the caretaker prime minister in order to fight for unity for spain. therefore, spain at the national level remains in limbo, which is important to many economists. guys, back to you. our next guest says if you use his website, you can buy a home completely online. we'll talk about that and the future yahoo! with former ceo tim mors in just a moment. ♪ today, we're seeing new technologies make healthcare more personal

with patient-centric, digital innovations; from self-monitoring devices that can interpret personal data and enable targeted care, to cloud platforms that invite providers to collaborate with the patients they serve. that's why over 90% of the top 25 global pharmaceutical companies are turning to cognizant. our domain experts, technologists, digital and data specialists, clinicians and scientists are transforming the way clinical research sites collaborate with pharmaceutical companies, and enhancing patient engagement with innovative platforms and solutions. our population's growing healthcare needs present growing opportunities for our clients: to advance the future of medicine with digital, and improve the quality of lives. ♪

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authorities have begun the process of extraditing the drug lord to the u.s. but they say that could take a year or longer. two afghan women and a child have drowned off the turkish coast after their migrant boat sank in the aegean sea. five others swam to shore. and pope francis has called for a bold and creative strategy to deal with global migration, insisting that europe has the means to absorb the refugees. in a speech, he said humanity must not let security fears stop countries from taking in the refugees. that's your cnbc news update this hour. back to "squall alley." >> moving on, changing its name to 10-x today. keeping the option.com brand as well. the company announcing its now the first place you can buy a home completely online. tim morris is the ceo of auction.com, 10-x now, and he's

also former cfo and interim ceo at yahoo!. we'll get to the news on the name change in just a sec, but let's start with yahoo!. "new york times" report says more than a third of employees have left the company in the past year. mayer could be planning significant layoffs. this is starting to look like the old hp playbook of significant layoffs, financial engineering as they then search for new revenue growth and then, you know, rinse, repeat. how does it lack to you? >> well, it seems kind of eerily familiar to the fall of 2011, beginning of 2013. you had a lot of the same elements in play. you know, i'm -- honestly, i'm not that current on the yahoo! story anymore. i think -- it's a very tough job. you know, that is a big, big ship to turn. a number of management teams have kind of rotated in and out trying to do so. i just believe they need more time. they need the time to make a

plan stick. while 3 1/2 years may sound like a lot of time for the current management team, it really isn't, with such a big job. >> wow, i shudder to ask how many years you think it would take, but in the interest of time, i want to be sure to get to your news as well. tell us about 10-x, the changes your company's make today. auction.com is still a subbrand that you're going to have, but what are you trying to do in residential and commercial real estate with 10-x? >> well, it's an exciting day for us. this is really -- marks a next step in the eplucian of our company. we really see it, 10-x, the name, as a rallying cry. we want to make buying and selling real estate ten tyimes better for everybody involved. we are, as you note, both residential and commercial. where we've done about $35 billion worth of transactions in our history and about $8 billion of that was last year on some nice strong double digit growth. so we've got a lot of momentum.

really, the name of the company is changing because we're changing. we are, now, going to be the first true end to end online experience on the residential side for buying a home. we're alady that on the commercial side. we have both auction now and coming in march nonauction alternatives. which is new and value propositions for brokers and agents too. >> is this part of a desire not to be associated too strongly with auctions? auction.com, you pretty much expect just auctions when you go there. with 10-x, are you really trying to emphasize this other means of transaction? what kind of percentage is that of your business now? >> well, the vast majority is through the auction mechanism. that's a wonderful mechanism through buying and selling with certain access. to really go after the whole transaction value in the u.s.,

you have to have both that auction and nonauction functionality. really taking the best of the offline world and developing a process to it to arrive at a better solution for everybody. >> tim, when you came on board as ceo, part of the thinking behind that move, according to the company's press release, was they wanted someone with experience running a larger public company. i'm wondering where you guys are on that path and when you hope to be there. >> we don't really have a time frame specifically for it. we made a lot of progress last year. everything kind of grew strong double digits strategically. we were able to launch the beta version of our consumer ready housing site in august. have terrific sell-through rates on that. so we're really focused on this 1.8 trillion -- we did 8 billion last year in transactions and that's a big number. compared to 1.8 trillion, which

is what the industry is, there's a lot of room to expand. the rest of the time lines will take care of themselves. we couldn't be happier with how 2015 ended and how 2016 is starting. >> all right, tim morse, thanks so much for joining us. looks leak a flash back to three or four years ago. a brand change and a model shift at auction.com, now 10-x. thanks so much. up next, plenty more on volatility in china and what it means for tech companies and the overall company. former u.s. ambassador to china jon huntsman is going to be with us. look at shares of etsy, slipping. down about 50% in the last six months, down 8% today. we're back in just a moment. ♪ today, we're seeing new technologies make healthcare more personal with patient-centric, digital innovations;

from self-monitoring devices that can interpret personal data and enable targeted care, to cloud platforms that invite providers to collaborate with the patients they serve. that's why over 90% of the top 25 global pharmaceutical companies are turning to cognizant. our domain experts, technologists, digital and data specialists, clinicians and scientists are transforming the way clinical research sites collaborate with pharmaceutical companies, and enhancing patient engagement with innovative platforms and solutions. our population's growing healthcare needs present growing opportunities for our clients: to advance the future of medicine with digital, and improve the quality of lives. ♪

coming up on the halftime show, oil in china, which would be could cause a deeper correction for stocks? plus, the big downgrabd for under armor today. and why is pfizer raising prices on more than 100 of the company's trucks? we'll ask him about this when he joins us exclusively. we'll see you in 15 minutes. stocks in china closing at four-year lows today, sliding yet again overnight. with continued signs that the

world's second largest economy may slide further in 2016 it now raises a high stakes geopolitical concern to face the next u.s. president. what should the u.s. do about china? are the candidates prepared for this? who better to ask than former u.s. ambassador to china, former utah governor jon huntsman, now co-chair of no labels. ambassador, it's a pretty unique situation as china's economy continues to evolve. the criticism now is they're using an old playbook to play a new game. what would you say? >> well they're actually moving into new territory. with a relatively new playbook. they're using some of the tactics they used in years past. they're trying to get to a new destination. if you look at what was stated at the last party contest that took place last year and where

shoe ji xi jeng ping is trying to take things. it seems that xi jinping always chooses an easy road out of it, which is to either subsidize, ton artificially support the currency and otherwise manipulate the marketplace. to say nothing of where commodities are and the overall sentiment around the region with nuclear bomb blast in north korea, et cetera. but things are going to have to smooth out at some point because we have the 17th party congress right around -- pardon me, the 19th party congress right around the corner in 2017 and xi jinping is going to want to show the world in the run-up to the 19th party congress, which will be next year, that they're solving problems, they've imsplitted policies and practices that are sustainable, and durable, and you have to remember that his leadership is very much at stake here. >> so what should the u.s. do in this situation?

because the marketplace, evolving as it is, still involves increasingly globalized companies, many u.s. companies are very entrenked in the chinese market. they're watching a very volatile currency. they're trying to predict where it will go. what's the u.s.' role in this market right now? >> the u.s. should do what it usually is good at doing. and that is articulating and proving that best practices and best standards for market openness, for regulation, ought to be in place in china. the problem is china catching up at the local provincial levels, to say nothing at the national level, with where they had hoped to be at this point and certainly where they want to be in the future. they're behind from a regulatory standpoint. their debt balances are well beyond what they thought they would be at this point. the stock markets both in shanghai and shongjon are both very poor. their ability to communicate, their ability to regulate,

trading. early days right now. so getting them up to a higher standard is probably the best thing the united states could be doing right now. ultimately, building out the network of trading relationships we have in the region under the transpacific partnership i think is probably the best safeguard in the region right now. because the chinese will see this emerging and will want to speed up their own internal reform process. so they're not left behind in terms of the nations we're investing with and trading with and otherwise doing business with in the asean pacific region. >> we talk about the leadership's unwillingness to tolerate too much unrest. we're starting to hear about protests when it comes to layoffs in the phone production sector. i just wonder whether you think their sensitivity in that area has changed at all. >> oh, i think there's huge sensitivity in this particular area. high unemployment always leads to political instability. when economic indicators get out of balance, i mean, we saw

exactly what happened in the spring of 1989, in the run-up to june, the tiananmen square massacre. you look at the economic indicators and the uncertainty of the people in china and the run-up to that incident. people thought it was all about politics. guess again, it wasn't all about politics. there was a good part of it that was about the economics prove lent at the time. i'm guessing every morning xi jinping and the rest of the senior team, they look at the dash board indicators around unemployment, around inflation and other leading economic indicators, and they'll do whatever they can to manage those such that they won't get out of line because they know too many people who are unemployed or otherwise moving from the rural countryside into the city centers can create huge destabilizing forces within china. in some cases, those destabilizing forces can't be rolled back. >> based on the road china's on

now, how it's handling the shift to more of a consumption economy, what do you view as the worst case scenario for global markets over the next six months? >> probably continuing down the track that we have seen over the last couple of weeks, where the -- you see the marketplace losing 10% of its value. a follow on to late last summer where there was 30% taken out of at least the shongjon markets specifically because the price/earnings ratios were so out of whack. i think their believability in terms of where the reform agenda is going, all of these would spell bad news over the short term. as it relates to the fundamentals, that is the journey china's taking from the old model to the consumption model, i don't really see a shift in that. i see some turbulence to their journey they're now in the middle of, but ultimately they'll get to a consumption

model where people are going to be buying more. we'll have more in the way of export opportunities. they're going to have to promote greater things like innovation, entrepreneurship and domestic creativity in order to sustain that local consumption model. so longer term, i think we're in better shape than what i've heard from some commentators. short term, i think we can expect some choppiness in the market like we've seen the last two weeks. >> it will be a dilemma that faces the next president. size up the republican field for us. six candidates have signed the problem solving problem for no labels. what do you think the outcome will be? >> we're here in new hampshire basically to recognize six of the candidates. the bipartisan group who has made the pledge. we're not endorsing. we're just here to recognize that they have embraced what we have promoted the last little while, which is once elected president, that you'll actually work with the other side on some of the big issues that face this

country. everybody talks about solving entitlements, jobs agenda, energy self-sufficiency and balancing budgets, but then when they get there, there's no ability to manage those big issues through to fruition. what we're doing during this election cycle, along with my co-chair, is to say let's start early and the election cycle and get the candidates bought in to a process by which if elected president they will actually govern and get things done. it's not as much the what are you going to do but how are you going to get it done and how are you going to deliver these big things for american people? we're about to walk into the lunch with some of our no label supporters here in new hampshire to recognize six of the candidates and i suspect there will be more who will want to take this problem solver pledge as well. >> we know we need to let you go but we appreciate some valuable insights on a topic so familiar to you as china. ambassador jon huntsman joining us.

>> thank you. coming up, "star wars" already smashing box office records in china. we'll put those numbers in context.

my name is jamir dixon and i'm a locate and mark fieldman for pg&e. most people in the community recognize the blue trucks as pg&e. my truck is something new... it's an 811 truck. when you call 811, i come out to your house and i mark out our gas lines and our electric lines to make sure that you don't hit them when you're digging. 811 is a free service. i'm passionate about it because every time i go on the street i think about my own kids. they're the reason that i want to protect our community and our environment, and if me driving a that truck means that somebody gets to go home safer, then i'll drive it every day of the week. together, we're building a better california. "star wars: the force awakens" now the third most commercially successful film in history. the film brought in a record breaking $53 million in its

opening weekend. and the film proved such a success this weekend. take a listen. >> the disney marketing machine is unparalleled to anyone. you can't walk into a mall in china, i'm told, without seeing "star wars" everywhere, not just in the big cities. i guess, you know, they lined up "star wars" troopers on the great wall as part of the publicity. and then i think there's imax itself, we did a lot of viral marketing that appeal to consumers and i think other the last month if you saw what we thought would happen a month ago to now, you'd be very surprised, it just picked up a lot of traction the last couple weeks. >> the foersrce awakens is gain ground. guys. >> you know what that means. >> vaguely. >> you're right on top of it. >> now i feel like i can really get involved in the cultural

conversation. >> we like that. >> when we come back with a value over $60 billion, uber has its sights set on a new kind of investor.

uber is reportedly nearing an investment that will take its valuation to $62.5 billion. tell him this funding will be carried out through morgan stanley's high net worth network. being offered 48 to 72 a share and today lift partner and chinese uber competitor shared that 1.43 billion rides were completed in 2015 alone. 200 million just in december, guys. >> well, that is a notable offering. we should also note a year ago goldman sachs offered $1.6 billion in its own high net worth clients. uner's valuation was $35 billion. so unclear who's getting the better deal but at least for now it looks like goldman. >> also reports today they're cutting prices in 100 cities all around the world as the competition with lift might have gotten a little more interesting over the last couple weeks. >> yes, it will be interesting to see how this affects the drivers who aren't always that

excited when uber cuts those rates. >> meantime, dow's going to waffle here and has all morning long. currently up about 46 points. we'll see what the afternoon brings. in the meantime, let's get over to headquarters, scott wapner and the half. welcome to "the halftime show." joe terranova is here along with jim laventhal. our game plan looks like this. pharma bosses. live and exclusive today on drug prices. their mega deal. and what could happen next in the health care world. call of the day. why morgan stanley throwing some big-time shade on under armor today and what it means to your money and that stock's future. we begin with the market. stocks trying to reverse this year's dreadful start. not finding much traction however at this hour. the dow is