this week head of that fed meeting we have coming up. the regional banks like citizens financial and key corp, regions, m & t bank up around that 1% to 2% area. those names are helping to lift this spider regional banking etf. kre, up about 1% or so on pace for the best days since july 3rd. however, this etf overall still down 2% for the year now i send it back downtown for the start of "squawk alley." back to you. >> all right dom, thank you very much good morning it is 8:00 a.m. at apple headquarters in california and "squawk alley" is live ♪ ♪

>> good monday morning welcome to "squawk alley." we're at post 9 at the new york stock exchange joining us, foundation capital steve osala joins us to talk tech good morning you to. the nasdaq is coming off the first down day in 11 on friday riding that massive rally. a number of recent ipos having a rough couple of weeks. shares of snap are trading near all time lows, down about 15% since its market debut and blue apron down about 20% from its ipo getting a bump this morning with the number of new initiations. a lot of them outperform or buy, steve. but it does raise the topic of valuation as we had this nice run in tech going into a big week of tech earnings. so give us a sense of where your head is right now on price and how the fundamentals are coming in >> well, i'll tell you, i think in the valley right now there's a sense of both big

accomplishment aren't companies getting out in the public markets and also a sense of trepidation. and the main reason why is that while the companies are growing at just lightning pace, they're also going up against some of the strongest companies tech incumbents that really ever been born if you think about what is going on with amazon and even just some of the sort of the prototypes they were running in seattle around the meal kit business f you're blue apron, you think amazon is the white walker and winter is coming. this is rattling around the halls of snap. every time they launch a new feature and they're so creative. every time they launch a new feature, it basically gets inked by facebook and facebook's got so much more scale i think really it's a question of can these companies compete with the tech giants today >> steve, where do you think the opportunities are to really differentiate in this environment? i mean, yes, give credit to snap for the creativity on the filters. but i think to some extent the

fact that they're relatively easy to copy says something about maybe it's not that difficult, maybe it's not that differentiated to have birds flying around your head in a virtual environment. so are there areas whether it's ai, whether it's biotech where you see real possibilities in this environment >> what i'm seeing here is the company that's are really close to their users that really know what their users want long before they're asking for it they're the ones that are going to sort of be the sort of the next generation of the tech giants i see this in some companies, for example, in deep technology that are developing the next generation of ai and they're going after kind of infrastructure layers and they know what these sort of ai work loads are coming and they're really building things that are sort of way over the horizon so it is less it rags on current concepts as you eluded to with snap and much more step wise change and innovation which is what i think the value stood at. that takes time.

and substantial investment i would look to areas like ai and machine learning deep down in the stack and then i also think there is a pocket of opportunities for companies, for example that, are going after niches that are maybe too small for the large players to pay attention to but that can be growing quickly. and that really are sort of have an intermat audience connection with those companies >> you sort of seem to leave a lot of direct to consumer businesses out of that i mean is that something where it's essentially very difficult to go up against those incumbents that you talked about right there? you are seeing that in terms of start-ups and fund-raising and the private side basically not having as much appetite for direct to consumer >> well, i think direct to consumer if you have some unique customer acquisition mod. >> caller: still make sense. but if you just have your undifferentiated direct to consumer e-commerce company, then i think you're basically walking into a firestorm of the

competitions but again, i think it's got to be something where you're starting with an intimate audience snap has an audience that is deeply passionate about what they do. and the problem is if snap gets mainstream, then those users don't like it anymore. and so you got this push and pull between being a product that your users really love and are passionate about but then also this distribution challenge that you need grow i think you are stuck between these two places so you got to look at these sort of interesting places. so we're looking at least now in pocket that's are really n concepts but more substantial changes, more deeper tech changes. >> steve, i want to ask you specifically about blue apron the theory being that when it's a brand new category like meal kits, you have a giant like amazon in the space, really when what all the competitors are doing is raising awareness about

the category at large. you might still have some barriers to entry at least at scale. and you might end up like a grub hub surviving in the long term that is the essence of goldman sachs's note do they have a point >> you know, i think goldman sachs's note may have been written before the amazon acquisition of whole foods my sense is it's just going to be harder. i think if you got technology as a lever and that can be manifested in lots of different ways, distribution, customer acquisition, then i think can you hang on for the long term. what is challenging about this is that you're going up against the company that is masterful at both bits and atoms. they're very, very hard to compete w i think you're right if you got some unique strategy and unique technology, can you probably skim the cream of the market for some time that's going to be tough here. i think they'll maintain the market leadership and the premium end of the market f amazon goes big on this meal kit

strategy, then i think they should be concerned. >> steve, which would you bet on, the blue apron model or the muncherie model snt one that delivers the ingredients or the one that delivers the prepared meal for about the same price? >> well, i think folks are focused on easy today. particularly those who have some disposable income. and certainly the preference i see among urban young individuals is towards those already prepared meals that are ready to just eat. i think if you're having kind of those once or twice a month special occasions where you want to invest a little bit more time, i think you may do the blue apron approach. i think it will be a mix i think the audience that this -- these companies are going after focuses on ease. they really do >> interesting point it's going to be a while before we know the answer to. that moving ton a new topic. part original content, part ai showcase apple is out with a new short movie starring the rock and siri

>> hey, siri, show me lines of my fashion line. what do you >> what do you think. >> oh, i think it's show time. everything in life is made up of four elements, wind, fire, water, rock. >> siri. to chef, i want to cook. how many ounces in a secentilitr >> messy give me some siri, play my practice play list >> rock tweeted this yesterday using the #dominatetheday. is this an attempt to -- is this a sign that apple believes alexa got more press than she deserved >> well, i mean, i got to say it's fun to watch. i think there is a summer short on blockbusters. it was fun to see. that i think this is probably more so an example of apple

trying to raise mainstream awareness of what siri will be capable of they have a lot of technology in the products and it's very difficult as they have i think discovered -- explained those features and benefits to consumers. i think rock is sort of a perfect person to go and do that now i will tell you though that echo, you know, has 10,000 skills today it's growing every day so i think it will be interesting sort of tension between the vertically integrated wall garden strategy of apple versus the sort of more open approach of amazon. we'll sort of see how that plays in the market. >> i'll tell what you i like about this commercial, steve, is the rock is outdoing things. sow couldn't be using an echo. that sitting at home so they're trying to play it seems on the mobile aspect of siri what i don't like is that siri, it seems half the time fails to actually be able to understand what i'm asking her. so i look at this commercial and i think, fake. >> well, there's -- they got a

lot of work to do. as you know and it's another example of deep technology at work. >> narrator: under the covers. five years ago the systems were unusable today they're getting borderline usable to think about where they need to go to really be able to do the things rock is doing hanging in all the places. you know it's coming it's a 10,000 mile march i think they're trying to raise awareness here >> as a big picture competitive proposition, do you think apple feels that it's lost any device sales to the echo, to the in home appliances directly >> i don't think athpple lost a sales. i think they're trying to prep the market for home pod. you'll be able to do a lot of the things in your home, of course, do more than just check the weather or set a timer i that i they're getting us prepared for that they're getting us ready for a big launch later this year of the ar functionality which is

much, much more difficult to articulate again if i twor say siri, play my rum that i did yesterday on the table in front of everyone that's tricky, too they're going to get us aware of what is coming i think this is just one attempt to do that with, of course, a very likeable character. >> yes maybe the most likeable that we have out there right now steve, it's always good to take your temperature thanks again steve from foundation capital out west >> alphabet reporting the second quarter earnings of at bell. they're up more than 25% so far this year. it's expected to come in with revenue just shy of $21 billion. also reporting this week, facebook, amazon, twitter and more and for more on that, we're joined by senior vice president and portfolio manager dan morgan and pivotal research group senior analyst ryan weezer good morning to both of you. you cover a lot of these ad

driven names so looking at alphabet, looking at facebook, which one do you expect to be more of a gauge on how that market is shaking out maybe to have more surprising numbers? >> i mean, far for me to predict who will win they're doing fine they're both owning the advertising industry the bigger issue is which one has the greatest risk to the down side? and it's more of a negative way to look at it. the problem is when you are the market or when you own more than all of the market's growth, what investors need to be conscious of is who has the greatest risk to the down side we're in this place where if the two companies kept growing the pace they've grown at or if the industry kept growing at the pace they've grown at for five years like they did the last five, they would be all advertising. right? that is not realistic. so investors have to be mindful of where the limits for growth are with the companies and the regulatory risks are when it comes down to price

targets, i think google is fairly valued. facebook sun fortunately overvalued a little bit more at this point so i'd say there's more risk on facebook at this point >> dan, do you see it similarly? are we limited in terms of upside just because of how far all these stocks have run or do you think you see potential in any of these names to turn over something new? >> i would expect positive momentum to continue you look at alphabet, it trades at 32 times earnings facebook is in that kind of 50, 60 times earnings area you know, if you look at facebook, it's interesting they kind of keep adding new legs to their business we look at what they've been able to do with instagram. they got the other things that they're pushing for that aren't actually monetizing and going sl trying to monetize other things as they try to create a second leg for themselves

so both companies have other things going on. it will be interesting if they can ramp it up like amazon with aws. i'd like to see going forward in terms of their ability to, as we say, continue to grow at the pace that they've been growing, keep adding to the value of thifr market cap going forward >> dan, you mentioned google, alphabet around 32 times, that is trailing earnings it doesn't seem to crazy it was about $18 about 5 1/2 years ago. they've been rebuilding the valuation, kind of reminiscent of the earlier days. is that because that's what the smashgt doing for the great businesses or has alphabet given you a reason to pay up more? >> if we look at the valuation on a trailing basis, you look at growth coming into this next quarter, you know, we're looking for advertising to grow about 17%. we're looking for 20% growth in terms of revenues and earnings so it's not a crazy multiple to be honest with you, everything has been kind of

ratcheted up recently as you know right? facebook's multiple is ratcheted up we look at google and so forth, alphabet so microsoft is trading at a higher multiple now than did it two or three years ago so i just think it's enthusiasm about technology which obviously i embrace because it's a sector that i follow. again, we have a lot of great stories to talk about. we have artificial intelligence, we have oled, we have cloud. so there is all the catalysts throughout that weren't there three or four years ago. i think the multiples commensurate this excitement about these new businesses and what can happen down the road. >> brian, how much are you on the lookout for any type of acquisition of any scale by alphabet it's been a while since we had a nest size deal, sfligt. >> they can do anything they want, just like amazon and facebook f they want to be in a business, they can go there. but the bigger problem is the fact that they are exposed to advertising no matter what they do or what they're most lickly likely to do that's at scale

looking at the kurnlcurrent met, it's going to be the european commission causing google to make changes to the business what are the implications of the shopping ruling? we don't know. by the way, google doesn't either necessarily because the ec was not specific an what they need to do that is not going to just apply to shopping, it asupplies to other businesses we need to be conscience of that part of the advertising business back to your question, sure, if they want to buy a whole foods like amazon did or something similar, you know, they can do whatever they want i don't think anything is going to move the needle as much as advertise zg for them though >> good point. regulatory risk lose over manufacture the name many of the names >> oppenheimer initiating coverage on blue apron with an outperform we'll talk to that analyst and kara swisher talked to cory booker on his push to break up big tech

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shares of blue apron getting

a boost this morning goldman sachs, rbc and oppenheimer all initiating with buy or outperform ratings on the stock. shares still down by more than a quarter since the ipo. let's bring in oppenheimer managing director and senior analyst who initiated coverage of blue apron today with a buy good morning, jason. >> good morning. >> so here's what i don't get about blue apron it seems like the key to them being profitable long term is knowing way ahead of time that their customers are going to want to eat and sourcing those ingredients as cheaply as possible i just don't see in their model exactly how they get there >> so you're right for this model to work. it does need to be a subscription business. when we think about what people are concerned about the competition, for example, there is concerns that grocers will offer this as an a lacarte offering we look at the gross margin effectively what the cost with food, packing and shipping that was about 33% of revenue

last year. up from 2015 and we think that can go to 40 over time. ultimately they have a margin advantage versus a traditional grocery business which runs as much thinner margins the question is really the competitive environment. there is a number of privately funded companies in the space and i think there was a the love capital that came in and i think it clouded investors concerns about long term profitability in the sector >> jason, why do we assume there is going to be this resurgence in cooking at home when fast casual and restaurants have been doing relatively well on the demographics seal to be shifting the other way. >> at the same time, can you find data that suggests that people want to be more healthy, right mean -- i don't have to go there you talked about that as a trend. i mean you look at supermarkets, the shift towards more organics, healthier, et cetera

so i think -- and it's a very big market, right? when you just look at what people spend to eat dinner at home because again we're not talking about lunch. we're not talking about breakfast, snacks. it's $500 billion industry and the market share is tiny by our estimate, it's like .11%. so the bottom line is they don't need a lot to be successful. and we think this is a scale game the biggest player in the sector should be able to win and right now they're the biggest player by a multiple. >> just to be clear, jason, that half trillion dollar total potential market is all of restaurant and grocery, right? essentially, you know, it's all the different ways you might be able to eat and so their piece of it, i guess the key is estimating how big is the people who want to work for it or are thoughtful enough about it to actually stick with blue apron on some regular basis. >> so what we did is when you size the industry, we looked at dinner only. and a certain number of nights a

week they're not doing lunch or breakfast. again, the idea is this doesn't replace all of your food needs what's interesting is effectively the company got bad luck with amazon and whole foods coming out right before the ipo. and then amazon effectively either registering or making known it registered this trade mark about a meal kit. at the end of the day, we think amazon is going after -- they want to replace all of your grocery shopping okay and this is just a very small piece of it. it's a few meals a week. and so, look, at the end of the day we think the grocery stores need to figure out click and shift, okay? this isn't click and shift this is i don't have time to go to the grocery store and i don't want to even think about what i'm going to buy or -- make me -- send me all the ingredients for a few meals a week and that's a part of what you want to solve. so ultimately we think the

market is really taken its toll on this company. you're basically training as of, you know, as of yesterday and prior flows down to roughly the same market, sprouts market or what amazon paid for whole foods. effective lishgs the market eff, they derisked this >> the ceo talked about getting growth to accelerate by increasing frequency and he mentioned specially different day parts and different occasions. he didn't get more specific than that you can imagine something revolving holidays or thanksgiving is that something that you're trying to incorporate into your mod snl. >> we're not but they did figure out that they do have a lower order rate in the fourth dwaquarter becaus they don't offer a thanksgiving meal and then if people are traveling or going to other people's houses for dinner or

restaurants, they may be less likely to want this and you have to decide in advance, right that's how the model has to work really what this comes down to though is that they were a leader some of the competitors began to give you the choice of getting the food on a monday, let's say, instead of on a wednesday. being able to have more choice with the frequency and the way that blue apron is reacting to this is ultimately by increasing the automation and upgrading the facilities was exactly expensive. the east coast automation was delayed and really won't impact the numbers until the fourth quarter. so part of -- >> we have to leave it there, jason. >> okay. >> bold call the proof of the pudding will be in the eating as they say. when we come back, kara swisher on everything from breaking up big tech to sexism in silicon valley. you always pay

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take a listen to this. >> i do believe that we've been too lax in this country as we approve all of the mergers to the detriment of our society as a whole. i still have that tweet in my mind, i still felt the need to defend my local whole foods

because whole foods made it -- i worked for years to battle the food desert in new york and new jersey and through all creative means from urban farming, acres of farms to having supermarkets move in or whatever. but we have a crisis in our country right now. you're seeing trends that often are coming about by a short termism. >> let's bring in the executive editor kara swisher. good morning to you. >> good morning. >> good interview with the senator. >> yep >> between that interview and pe low pelosi's article, are you sensing a build in democrat politicians targeting big business >> well, i think the antitrust investigation certainly have gone by the way side in comparison to europe n a the love ways senator was very much talking like european regulators

like margarite in that the big companies got too big and we have to do something about it. it's a very valid thing to talk b there hasn't been any action in a long, long time against any of these mergers and so i think a good thorough looking at them is critically important. and cory booker's case, he's talking about the consolidation of grocery chains and obviously not having enough good low cost food alternatives in urban areas. and also pricing and all kinds of things. in the case of google, i think he also talked about the fact that maybe regulators should relook at the company the way european regulators have been. so it's an interesting trend i don't know if they can do much about it given they don't have control of anything politically. but it's an interesting thing that they're talking about it's very -- it's sort of pushing the party a little more left, i guess. it sounds like to me >> kara, on the substance this just doesn't make any sense to

me this argument that somehow the mergers have brought consumer prices up. if you think about google buying youtube and what's that done for the availability of video. if you even look at the availability of broadband given -- i guess given the pipe that we already had in the ground, it seems to me difficult to make the argument that prices per bit, for example, have gone up certainly in wireless. you're getting more through put for roughly the same price that you were paying for 2g so where is this democratic argument coming from and are there numbers behind it from what you can tell? >> well, no. come on, john. big business always has our interest at heart and not their own bottom line. they're always thinking about the little guy i think it's just a normal democratic thing i think and important one that i think a lot of democratic activists things have gotten lost i'm not surprised this is the way they're moving they have to make the case to

voters and this is one case. big business is hurting you. they got lots of examples of that i think the question is, you know, on the other side, a lot of these very -- amazon has done an amazing job of bringing things to consumers that they love at prices are presumably going to get lower as they get more buying power. but at the same time, you know, there should be valid concerns of regulators looking at all these things including around the fcc and all kinds of mergers. i think essentially the u.s. government has aggregated their responsibility in this area. i think he is restating that it shouldn't do so going forward. because -- it's an interesting thing. >> companies that have too much power that, logically get you to some of the biggest tech companies that you've been mentioning i just wonder, obviously, that further jumbles up the political loyalties and the breakdown of who is for which side that we kind of thought all along. >> yeah. booker has been a very -- a big favorite of the tech industry.

i think this interview is very -- a big surprise got a lot of -- tony did an amazing job to get him to talk about this i think i got a lot of response from tech people like i thought he was our guy. what is that because i think tech people think of themselves as the little guy a lot of the time even though they are dominating social media, media in general, now commerce, amazon is just driving like a semitruck through all of retail and just knocking everything down. so i think they do think of themselves as small and these are our giant companies the way to other companies were in the past and so it's an -- it's going to be an interesting thing. democrats have always been tech friendly and, you know, some of the statements i would say are not tech friendly at all >> when booker talks about savage trends, we know what he means when it comes to consumer household budgets. but do you place -- i mean your per inspect sieve important here, kara given your knowledge of politics and tech

do you blame those trends on tech per se? >> well, i think it's a normal -- i think this is all political. it seems like it's political to me this is, again, a very typical democratic party stance of old times. obviously, their embrace of tech has not worked for them in the recent elections so i think they're trying to get to some themes that are very democratic it worked for the little guy we want to make shurt companies don't get too big. we want to make sure that they don't do what they want. you know, i had a real interesting talk with a congressman recently who had an amazon warehouse in his district and i said just casually, eventually that will be automated. and he was like, what? like i thought it was to provide jobs i said, yeah, but they're going to automate everything it was just for -- you know, they got all kinds of tax breaks for doing so i think it doesn't occur to them that maybe some of the companies, you know, using technology will do what is best

for them and not necessarily for consumers or workers these are going to be big themes going forward. automation, self-driving, robotics, ai, will be a very interesting theme for politicians in the next couple of elections i think i talked about it a lot. >> yeah. that was your point us with last week it's all part -- >> my thing. >> they're all part of a piece >> yeah. jobs jobs, carl think about jobs and where they're going. that's my big interest >> speaking of jobs, kara, "the new york times" has a feature on godaddy tightfield godaddy can turn the corner on sexism, who can't? the company behind those super bowl ads long ago seen by some to have a turn around since blake irving took the helm and they ask whether the shame shift could be possible for companies like uber who are under pressure to change practices with women in the workplace great piece in the times over the weekend about female ceos in general interviewing those, women who got very close to a number one job and couldn't quite crack it

i wonder is godaddy a model or not? >> well, it's interesting. they were well off -- the ads were very offensive and very morale -- it created a culture at that company which is throug the founder. when blake came in, i knew him when he wasa yahoo executive and before that at microsoft it was top of mind he certainly did spend a lot of time trying to recruit women to top jobs he was interested. i think it goes to show you, it doesn't matter if it's a man or woman, if the ceo really does take something like this seriously, change can happen and they've got -- it's got to -- you know, top down just really does work in business and so if the ceo makes the a point, obviously they're -- no company is going to be perfect and there is always going to be instances of these things happening at every single company. but if there is sort of a, you know, almost a zero tolerance policy and put tools into place to create change, it really

does and it doesn't hurt the company. it's not to be politically correct. it's because it's good for business and so i think it's an interesting, you know, it's got to have like -- i'm thinking of sales force and it certainly doesn't have to be a woman ceo doing this or a top women leader add google i think susan from her role there, her top role there did a lot initiated a the love things. but it's a great story it's an interesting story. i'm not sure everybody can do it but it certainly is an interesting case study and how it can be done >> yeah, when it comes to uber, as pervasive as the issues are with the culture, godaddy is part of the brand. it's not as if uber's brand and sort of public face had this skewed. >> right those ads were really odd. i recall them. it's interesting, i did a podcast with francis fry who is head of strategy leadership at uber we talk about all those things that podcast i think it's coming out today i think it is or soon. we did it last week at ericson

we did a live podcast. and so she was also talking about how you put the tools into place to create. that's her job at uber, to create this kind of better culture which i think is better for everybody eventually people just want to go to work to work and they don't want to deal with drinking or weird sexual politics or anything else so i think it was an interesting article to see what it takes to complete it, not just say it publicly and do nothing. >> blake irving also has been at godaddy for four years much of that not exactly in a glaring spotlight. uber doesn't even have a new ceo yet. think about how long it can take even under, you know, this kind of a good case scenario to get things turned around to the point where you get a feature article. >> yeah, it is it's true. it's hard work that's the whole point of it this is hard work to change a

cull tear and put systems into place and make people feel safe. at one point frances was talking about she said we have more hotlines at uber than if someone can't get through, it is almost impossible given how much access people have. i think that is first step is getting people to be able to feel safe enough to report these things and then get being them out of the system so that everybody feels her. you shouldn't have to get in that situation in the first place. but if you are, you really have to make big moves to create a culture that feels like one where everybody come to work happily. >> kara, good stuff today. we'll see you soon thanks so much as always. >> thanks a lot. >> kara swisher from one market out west let's get to seema mody with the european close >> hello, mike the selloff in europe continues. we're off the lows of the session. this is despite some up beat earnings from financials a big concern among investors is the negative impact of a stronger euro-zone currency.

that's been weighing on stocks we did come back in the green for spain and france take a look at the euro, now trading at $1.1684, levels not seen since august of 2015. more than 50% of profits of european companies are made outside of the eu. the sector is most impacted according to analysts, autos, transports, and luxury these are sectors that rely heavily on foreign sales also just point out that exports out of europe account for about 25% of the nation's gross domestic product that's why a weaker dollar, stronger euro is significant and has prompted this discussion about the impact on earnings and growth the autos, big losers today. antitrust concerns, of course, not helping the story over there as well. let's also talk about russia congress signing a deal on new russia sanctions certainly not a positive for russian stocks reports this morning also show that germany is trying to push

brussels to add more sanctions on the russian block that's not helping investor confidence we're looking at the rts moscow index down more than 1%. and off by around 12% year to date of course, oil prices, the pressure there, not helping russia as well mike >> seema mody, thank you very much let's keep it back at hq let's get to sue herrera good morning, everybody. here's what's happening at this hour the parents of critically ill baby charlie gard dropping the legal bid to send him to the united states for experimental treatment. this after new tests showed it could flonger help the 11-month-old but the parents blame prolonged legal battles for the delay in possible treatments a suicide bomb killed people in pakistan. at tacker on a motorcycle struck near police guarding a vegetable market 35 people were wounded fighters from the syrian

democratic forces advancing to the western frontst islamic state group in sear yachlt the battles are fought at night so the darkness can give them cover from possible isis snipers and a recall to tell you about. 28 ounce cans of busch's ground sugar hickory and original baked beans are recalled because the company says the cans could have defective side seams all of the cans have a best buy date by june 2019. so far no illnesses have been reported you're up to date. that's the news update this hour back downtown you to guys. >> thank you very much when we return, uber rival grab securing a major round of funding. we'll get details on that dow is down 60. ge is a lagger to day. rick santelli, what are you watching >> you know, i'm watching the dollar index it's up about that much but still hovering at the lowest level since june of 2016 is there a spot where they can hold at wt 'lta aut after the break. whoooo.

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coming up to day, make it or break it three of the four f.a.n.g. stocks reporting this week it is enough to lift stocks to new levels and pharma pricing, what will that mean for the stocks in the sector and goldman sachs going flat on a stock trading now at an all time high. we'll talk about it coming up. halftime report at noon eastern. carl, we'll see new a few. >> thank you very much, scott. meanwhile, soft bank and china

based ride hailing service investing $2 billion in grab this is the right hailing start-up another $500 million expected if from current investors grab's valuation, $6 billion and says a lot about why uber's strategy in that port of the world had to change. >> it does beyond that, i think this highlights one of the most important global tech trends going on right now didi before it was obvious that uber was starting to sort of collapse at least the global strategy in certain ways was building out the relationships not just in southeast asia with grab but also in india with lyft here in the u.s. and now this looks like an incredibly strong idea partly because this isn't just about ride hailing or ride sharing. it's also about fundamental e-commerce problems they're sisg offing like payments, being able to actually traffic people down dirt roads instead of paved

streets. they got bikes both motor bikes and bicycles in areas that are helping to get these things done so this company grab incredibly important and also this network kind of branching out from didi. >> partnering and not exporting. >> yes >> that's what you're saying with didi. >> investing what would be rivals in certain areas to build up regional strength it's no the just regional strength they have a partnership with lyft here. you'll see more technology tie ins between the likes of didi, grab, and lyft much of this led by didi >> the lyft ceo says he worries about uber less than he used to. let's get to rick santelli hey, rick. >> good morning, carl. a lot of times being spent not only on this trading floor but probably in trading rooms, computer rooms that are programming writing software for algos trading the markets on foreign exchange one of the hot ones this year, of course, the euro versus the

dollar or the euro versus the pound or the yen let's look at a 20 year chart on your screen. 20 year chart of the euro versus the dollar look at the way the markets moved and view that 120 line that is above the market a little over three points above the market considering where trading over 90 -- 1.16 right now. that 1.20 area is in traders minds. it helps to look at the more passive side of the equation we'll go to a 20 year chafrt the doll chart of the dollar index. a couple things we know but are worth rementioning fact that 10220 is where the markets set thld year. and the reason i find that so interesting is because it was at such a lofty point when you look at how far back that goes, it really is well preprices, right back down into that kind of 2002, 2003 area

so when we settle there, the ten year was at 244. obviously now we're about 20 basis points below that around 224. so we have a lower yield and much lower dollar index. but here's the point the point is where's this going to stop said 3 1/2, 4 points away is where many think you could seat euro versus the dollar i'll give you a couple easy things to look at. only real significant bottom we've had was right before we made the high. it is significant. there is nothing anywhere going back quite a ways from about 2003 that would comp it in terms of a down draft. so you really want to circumstance this will that was made in april of this year the other two areas i want to zone in on are these areas where just a little bit above 90, these areas are just a little bit below 90 now if you kind of take the euro dollar census of the equation and kind of go linear one for one, the 90 handle is very

doable if you see a 120. absolutely now if we consider where we've been, friday we settled around 9385 in the dollar index today we had a low of around 9382 so we settled the lows friday. why is lows friday. why is this important? you are getting very close to this area so probably look at that for consolidation because nothing goes straight down. looking at that against these two should give any trader a little bit of gps even though your primary chart is the euro chart. back to you. >> thank you. rick santelli. take a look at the dow just off session lows down 61. ge is within about 20 cents or ai of its lows for the year once agn at 25.41. we are back in a minute.

amazon taking out retail. now a new sector is under fire. bob pisani is on the floor to tell us about that. >> it's not just retail. amazon has the potential to disrupt middleman in general. if you don't have some sort of intellectual property you are

just a middle man and you are increasingly more vulnerable. amazon is taking the entire business to business space. in 20 5i amazon bought a business called small parts.com. it was renamed amazon supply idea supplying industrial and commercial customers. in 2015 rebranded amazon business with supplier to entire business to business community. that is a big business. amazon business has 300,000 registered corporate buyers. recently passed a billion dollars in sales. it started impacting industrial distributors. they sell screws and pumps and tools, fasteners, all parts of industrial america. last week goldman sachs urged investors to sell a brand as well as general parts companies. because of their susceptibility

to price competition. they could get more aggressive pulling a whole foods deal in the industrial space. last week an analyst said we would not rule out acquisition by amazon if such a deal were embraced by both parties. the key point here is distributors in general have the potential to be disruptive. >> thank you very much. bob pisani. squawk alley back ain moment with michael phelps versus a great white shark.

just news on jared kushner. after that interview with the senate intelligence committee the white house is saying kushner will make a statement at the white house after his interview concludes. i'm sure we will take that live when it does happen. this russia news doesn't seem to be going away but some new information out of jared kushner over the past few hours about how insignificant he is saying his role in that meeting was. meanwhile, it was supposed to be michael phelps versus a great white shark. find out how they did but not in the way they were hoping for. turns out the olympic athlete ended up racing a computer simulated shark that beat him by two seconds and almost immediately social media outrage came pouring in. one tweet saying you mean to

tell me michael phelps didn't race a shark i'm mad. another great white shark top speed 25 miles per hour. michael phelps top speed 6 miles per hour. it was obviously just view bait. >> it seems really silly to keep a shark in a starting gate and figure out how to race it. >> how will they lure him to start, stay in the lane all with phelps in the next lane. it is -- they have given us the tight rope walk without a net across a canyon. i think people sort of come to expect you didn't show us the thing. you have threatened to have people die before. markets are down 54.

alphabet will be the story and we will look for any word on other bets, guidance. >> all of that stuff the whole story this earnings season. >> the earnings will roll on all week long. let's get to the half. >> thanks so much. we will get to all of that in a moment. we begin with jared kushner, white house aid presidential son-in-law expected to make a statement from the white house following his private closed door interview with the senate intelligence committee. >> reporter: we don't really know what we are going to hear from him. we are told he will be make ag comment at the white house when he does return from the hill after several hours in front of the senate select committee on intelligence. this has been a highly anticipated meet