so apple promising better images, better video remember, that is a big significant reason people do upgrade, is that camera. ben and his team over at creative strategies actually did some prelaunch survey work and that camera was the biggest reason people thought about upgrading. we also heard about augmented reality, a.r., some people told me they were real excited about that, as well. a lot of technologies that tim cook's excited about, but none more so than a.r., guys. we give you criticism, i know on your show this week we heard some reviewers saying the iphone 8 represented in their judgment more of a slight upgrade to the iphone 7, which will cost you about $150 less, but other people i spoke to said that was actually not the right question, that the better question was what people with a 6 and the 6s would think, because for those folks, the 8 does represent more of a significant upgrade in terms of performance and camera. guys, back to you.

>> josh, the store opening with a big product launch, not what it used to be, right there were the days when apple didn't do preorders. if you wanted to be the first with the product, you had to wait online. this time it's very well choreographed. i'm guessing there are more apple employees there maybe than there are people in line am i right >> no, absolutely, john. when i got here this morning, the lines not as strong as usual, although i'll tell you, it has picked up now but i did talk to some people earlier who had been waiting in line and were expecting more people, but listen, we talked about that this morning, in some sense that might reflect consumers' shopping habits have changed, people are more comfortable ordering phones on line and this is a different rollout. this is a staggered rollout this year with the iphone 10 coming later. that might also be having some impact analysts, though, so far are not going to look at those lines as some kind of honest proxy for

demand, though, john >> before we let you go, josh, we, obviously, see the doors open, but where are the people in line relative to where you are right now? >> let me get the shot mark, maybe you can take a look at the line. you can see some of the people coming in here i'd say it has picked up when i first got here this morning, there was just one guy in line. a true apple die hard who got here last night, camping out on the sidewalk he was in line for that new iphone 8 plus. as you can see, more people coming in here i'd say there's a couple dozen now waiting. heard a lot of enthusiasm specifically, guys, for the iphone 8 in particular we'll see how that shakes out throughout the day back to you. >> looks like they haven't let them in yet, am i missing something, they are standing outside. it is 11:02. >> yeah, we are still waiting, michelle, for the big moment here >> got it, okay. >> and for that, josh, we will come back to you, josh lipton in palo alto today. good morning, it is 8:00

a.m. in cupertino, 11:00 a.m. on wall street, and "squawk alley" is live. notice ♪ ♪ "squawk alley," i'm carl quintanilla, john ford, michelle caruso-cabrera, sara is off today. joining us this morning, jeff richards jeff, always good to see you, good morning a lot to cover >> good morning. >> from apple to facebook. facebook agreeing, as we now know, to hand over 3,000 russian-linked political ads to congressional investigators which were purchased during the election

the company launching an overhaul how it handles paid political ads. facebook will demand advertisers disclose who is footing the bill zuckerberg, this is what he said yesterday. >> i don't want anyone to use our tools to undermine democracy. now, i wish i could tell you that we're going to be able to stop all interference, but that just wouldn't be realistic there will always be bad actors in the world and we can't prevent all governments from interference, but we can make it harder, much harder, and that's what we're going to focus on doing. >> zuckerberg said users will easily be able to tell who paid for an ad, view ads targeting other audiences on facebook and visit the advertisers' website the president spoke about this, "the russia hoax continues, now it's ads on facebook what about the totally biased and dishonest media coverage on crooked hillary. so, jeff, how do you think yesterday's move affects facebook's ability to face this

political crisis and what does it do to the business model over time >> well, we're in uncharted waters, guys we've never seen a platform like facebook that reaches the audience it reaches, 2 billion people around the world, 1.3 billion people every day, so there really isn't a handbook here for mark and his team to follow the good news is, you have folks like sheryl sandberg on his team, who does have a career in politics prior to joining facebook and a lot of focus and effort on their part to figure this out, but there aren't easy answers. it's not just russia other countriesaround the worl are trying to do things on facebook we're not aware of. north korea, countries over in the middle east. we don't know the extent of everything that happens on facebook, and like mark said, there's a lot of bad actors in the world and in tech, one thing we know from fighting hackers and security threats, every new policy there's legions of hackers that want to exploit it. this is the first step to figure this out and set precedent for

every other social media platform around the world. >> jeff, it's a deft move for mark zuckerberg to get ahead of this before governments imposed rules on facebook, but one thing that jumped out to me, he said it's going to be easy to tell who placed political ads, but didn't facebook say that a lot of the ads placed by these accounts linked by russia were not explicitly political they were divisive, had to do with social issues, but weren't expressly political? how are they going to deal with that issue, because it seems like an easy work around if you want to incite political tensions, don't make it a campaign ad, per se, get something that's going to get people riled up otherwise. are they going to be able to track that, do you think >> that's a good question. seems like a hard one to chase down the good news is, you look at the annual revenue for facebook in the $30 billion range, the net margin that company generates and the money they have to spend on r&d, i would hope they'd be able to devote a

lot of resources to technology that can do a better job of tracking the root payment sources, causes, et cetera, of these kinds of things than any other company. we haven't seen that to date and we certainly don't see it on other social media platforms, but let's hope facebook can try to figure some of these things out. we don't have the answers and i don't think if you talk to top folks in the security industry, they've been mostly focused on corporate hacking and threats. they haven't been focused on social networks. face it, only two dominant social networks in the world, facebook and we chat, which is in china something facebook is probably going to have to solve on their own. >> jeff, getting any good intel what these ads look like john did a good description of what they've told us, not necessarily about candidates, but trying to rile people up about issues i'm sure people out there are talking. have you heard anything about what they look like, sound like, topics, et cetera? >> i haven't, but i would bet

facebook will go overboard on trying to be transparent, given the scrutiny here. if you could wind the clock back, i think a lot of folks think facebook was fairly dismissive of this issue, but in the last six months they've embraced it and gotten aggressive around it and mark is out front and center on it they have a large policy team working on it and i know from talking to folks inside facebook that their tech team is very focused on it. i'll bet we see things come out in the near term that will address this issue i think the other question is, does the general public start, you know, stop trusting ads on facebook we sort of take it for granted when we see an ad for proctor and gamble or nike that those are authentic ads and does the fake news concept bleed over into other types of advertising, i think that's a question we haven't seen answered either and will be interesting to watch >> one last thing on this, jeff, mike bloomberg says if it means they should hire a human to read every ad, they should do that. are they going to pour human

cucu ration into this, or is this an a.i.algo issue >> it's interesting. as you know, we have a large presence in china, and many of the social and media platforms in china do that today they have humans who curate the content to make sure objectional content doesn't reach end users in china, so it's an interesting/slippery slope to go down when we start to talk about curation and i think we're getting into pretty healthy debate as we move down that road >> yeah, we know how the chinese do it. it's not how we tend to do things >> no. >> even if you're reading it, if you don't know who it's from, if it's a divisive post from an american, it's okay, it's different than if it's from a russian government source, right? how do you know by looking at that >> jeff, got some other issues as well today in tech, that is

uber london's transport regulator says they will not renew their taxi license, saying they lack corporate responsibility related to issues that have potential public safety and security issues uber has 21 days to appeal the company responds, "if this decision stands, it will put more than 40,000 licensed drivers out of work. we spend to immediately challenge this in the courts." all right, so another big cultural government problem to solve. how do they do this, jeff? >> great question, and i think, you know, a lot of commentary here in silicon valley about the road that uber took to get to where it is. obviously, travis and his team had a very aggressive approach to market expansion around the world, probably the most aggressive we've seen by a tech company or any company over the last five years. both with the amount of money they raised and the expansion model they used to get into new countries and geographies. now you're starting to see the

flip side of that curve, which is did they perhaps go into some markets and not handle it well, obviously, the corporate governance issues and harassment issues in silicon valley, and you're starting to see them pay the price. on the other hand, we see no lack of demand for investors who want to buy shares in uber softbank is looking to buy shares at $70 billion, some at a discount, but still the evaluation of $50 plus billion of uber holding strong and, obviously, softbank and others around the world are factoring in things like london as they think about that >> jeff, seems to me this is going to be his first big test as ceo london, major global city, and used to be in the past when there were these challenges to uber it was against a whole technology and ride hailing industry seems this is not the case this time this is specifically about uber. uber's reputation, uber's conduct. how important is it that dara gets this turned around? >> well, as you guys have covered extensively, he's one of the most respected ceos in the

tech industry, given his background in travel, someone that has just a tremendous amount of respect throughout silicon valley and throughout the country, so i would be shocked if he doesn't get out front and center on this personally, wouldn't shock me to see him personally go over to london and try to smooth out some of the issues that they have, but you're right, john, london is one of the major metro markets you've got to be in if you're uber. i can't see how they could operate as a company and not be in london, because it calls into question some of the other major markets around the world, and they certainly don't want to see this become a trend. my guess, he does whatever he has to do to course correct the policies that they put in place and to play nice with the government there, and really be a good actor within that market, as well as other markets they've got a lot of competition. over in china, grab in southeast asia you've got lyft here in the u.s. >> i hear you guys, i think, conflating their reputational issues recently with what's happening in london.

i don't buy that this is about taxis. every major city, i've been uber protests in athens, huge in paris. this is a huge vested interest all over the world, people have paid for the equivalent of medallions, it doesn't matter what company got there first and even if it had a pristine reputation, they would be getting hammered by the local unions i mean, this is these guys, those black cab drivers want to hold on to what's left they are fighting the technology i think over time, don't you think, the arc of justice is going to bend towards what people desire, which is better service? >> i agree i agree. i can't argue. >> i don't think so. i don't think so, michelle i will argue i think when you look at halo and my taxi, barcelona, technology is catching up, even as the taxi companies participate with it, where it's not so bad i'm willing to say, okay, i can do this with my phone, i can have an uber-like experience, even austin, texas, same sort of

issue, they don't allow uber and lyft in, but they have services that are close enough, so it's not versus technology anymore so much it's against the practices. there's a big potential for the ubers to lose. >> unions versus everybody else. >> i don't care, just as long as i can get a car for a reasonable price. >> proxy for all ride sharing period, right? >> exactly, exactly. no matter who got there first, was beating back the taxi drivers in london, athens, new york city, they would face this onslaught of criticism, even if they hadn't had all the issues >> so then do you think their take no prisoners attitude in the end was an advantage >> yeah. i think so, absolutely i mean, i think when you heard travis kalanick have that fight with that taxi driver in the, excuse me, the uber driver in the back seat where he said i made the decisions i made because we would not have survived otherwise, absolutely, right about that >> jeff, what about you? is this an instance which you

could not play nice? >> i think -- the interesting thing here, i think if this london decision happens two or three years ago, i think we have a real problem, but i think the market's tipped. i'm with john, uber has become such an indispensable mode of transportation and lifestyle for not only people in the u.s., but around the world you can literally go anywhere in the world and assume you don't need to rent a car, hail a taxi. you pull out your phone and call an uber. i don't see that changing. again, back to the point about softbank, i've had tons of people ask why is softbank coming in to uber at $70 billion. this is a company people think will be worth $300, $400 billion down the road. it's only going to get larger. the supply and demand curve they've created is enormous and i think it was right they ran the right playbook, just didn't do it with a culture that had a lot of respect for the right kinds of people and maybe laws around the world, but read adam's book on uber, which is terrific, he goes into depth

on the ways if they tried to be nice, we'd be hailing cabs in a lot of these cities. we would >> no disagreement here. jeff, really quick, you know, for all the talk that fang gets, you're definitely watching some of the growth in these smaller tech companies, square, shopify, what do you think that means >> it's an index on the health of small business in america five, ten years ago there was a mantra in tech you couldn't smell to small business and if you look at those companies today, and you mentioned a few of them, these are companies that are built on the back of selling to small business. shopify is up 6x since its ipo, square is up 3x, wick is up since its ipo. if you bet on small business buying technology, you've won big time the last two or three years. i think f.a.n.g. gets a lot of attention in the market, but there's an incredibly healthy ecosystem of small cap public

companies, as well as private companies, house, stripe in there, big commerce and others essentially arms merchants to small business if small business in america wasn't doing well, they are not buying technology from these companies, and they are buying the revenue growth is phenomenal and i think it's a great indicator on the health of small business in the u.s. >> jeff, covered a lot of ground today. thanks good to see you. >> thank you >> jeff richards with ggb. when we come back, amazon teaming up with olo to streamline online food ordering. we'll talk with the ceo in a minute amazon also getting ready to kick off its nfl streaming initiative we'll hear from amazon video's head of sports and apple's new product lineup goes on sale today. is it enough to wow investors and customers? a big show still ahead on "squawk alley" with the dow down 32 at fidelity, trades are now just $4.95.

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enables either food delivery or food pick up tell us how it works >> primarily, we're the digital ordering platform for over 200 different restaurant brands that represent 40,000 restaurants around the company, big marquee and public restaurant brands we let their customers order and pay and skip the line at the restaurant or get food delivered to them all using digital. this is an industry where it's an $800 billion industry a lot of it is shifting to digital ordering and delivery, and it's all about takeout and convenience for the consumer 62% of restaurant industry transactions are food that is not consumed inside of the restaurant, so it's a big part of that market >> what's the consumer interface? am i downloading an olo app and then going to or you are invisible and i am ordering from the restaurant >> in our core business, we're invisible, the technology stack the restaurant builds their app on top of. if you're familiar with the starbucks app, we do something like that. >> but not for starbucks >> not for starbucks >> but i am familiar

>> you've got shake shack, red robin, applebee's? >> applebee's, chili's, wing stock. >> because you've partnered up with amazon, amazon restaurants is going to have more options, all the customers available in my area who are already olo commerce, i'm going to be able to order through amazon prime now? >> yeah, this is making it easier for the restaurants we work with to add a new delivery sales channel through amazon restaurants. they can list their menus on amazon restaurants and when a customer places an order through amazon, it doesn't go into an order in the back of the tablet like a lot of small operators have a wall of tablets instead it goes directly into the point of sales system at restaurants. that's something big chains want to get onboard with for the on demand consumer. >> grub hub is down 2% is this a negative for them, or is this an add-on to something the restaurant might have already done >> well, there's nothing about

this relationship that is -- this is part of a new product that we've released called olo rails and the purpose is to make any delivery marketplace able to access the olo restaurants in a way that keeps the restaurant a little bit more in control and keeps operations simpler in the restaurant so grub hub could also plug into the same platform and they haven't done that at this point. we're announcing the amazon relationship today >> i'm confused. if i'm a restaurant, i feel like i have to choose you or grub hub. no have i got that wrong? >> if you're a restaurant and you want to have your own app, your own website where your customers can order from, you can do that through us if you want to be listed on a marketplace, then you can choose however many partners you want to choose and take orders from them, and those orders can come through us into the restaurant's point of sale. >> how are you making money, monthly fee, every transaction do you get a piece and how does amazon add on to your revenue? >> we're a software as a service provider for the industry, we

typically charge a monthly fee for the storm where we're not monetizing each transaction. we do make money on each delivery that comes over our platform, whether a customer ordering from the restaurant and getting the food delivered from that restaurant or the customer ordering from a third party delivery marketplace, where that marketplace is picking up the food and delivering it to the consumer >> the beauty for you, you have the three to five-year contracts with the restaurants where they are working directly with you, so that's difficult to disrupt how is this likely to play out for the consumer and whole market long-term are people likely to order from one particular app like i'm not going to order from shake shack through shake shack and through grubhub, right >> the analogy i would draw, it's like the online travel agents in the travel space for booking hotel rooms or flights there are a lot of customers like me that go to american airlines when they want to book travel because i'm getting the loyalty points from that direct transaction with the brand itself a lot of other customers will price shop around, they'll pick the cheapest flight.

i think there's a lot of room for restaurants to have their app and have customers come directly to them, maintain the crm relationship with the customer, but there are a lot of restaurants who say i want to benefit from the fact a lot of customers know amazon, love amazon, know about prime now and same hour delivery, maybe they want to order from there and i want my menu there as part of the consideration. >> speaking of amazon, what are they going to do next, do they really want to take over the world? >> i wish i could tell you that, but i think amazon is an incredible service to customers. i love using amazon. i especially love using amazon prime now and same hour delivery i think restaurants are a great category for them to get into. >> overall, a new restaurant owner who gets involved, what do you do for their sales in, say, six months >> i'd say the big thing in our core business we do is help make their loyal customers more valuable these are customers that want to download the restaurant's app. what we're seeing the average

order they are placing tends to go up by about 25% >> average size of the order. >> average size of the order suggestive selling, encouraging somebody to order not just for themselves, but with a group and order frequency goes up 32%. >> traffic and ticket. >> if you make it more convenient for them, say you can order ahead and skip the line when you get here, great vip service whether you're on foot, in your car. now it's more convenient because, carl, you can order from where you are and we'll deliver it to you. >> great stuff, noah glass, ceo of olo everybody eats, great business i'm going to try it. coming up, wall street's growing concern over nfl ratings and the wide range of companies that could be impacted p things don't turn around. >> check on the markets at this hour, industrials are lower by about 33 points. s&p is down by 2.5%. not rebalancing your portfolio. focused on what you love, not how your money will last through retirement. we make it easier to plan for retirement with day one target date funds

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both the united kingdom and continental europe here's a look how they are finishing the day. mixed to flat. ftse higher, france is higher, italy ditto, spain is lower, ditto for germany. volatile session for the uk pound in reaction to the brexit speech in italy, saying she'd honor budget commitments made during the eu minister, also proposed a two-year transition period following the uk exit slated for march of 2019 other big event, europe bracing for the german election on sunday. bracing is a strong word looks like angela merkel is going to have her fourth term. what is getting much more attention is the fact that alternative for germany is likely going to have seats in the parliament that's going to be the first time since the 1930s that the far right has had seats in germany and that's a lot, because of immigration angela merkel's decision in 2014 to allow in those 1 million plus

immigrants met with a lot of hospitality when they first arrived. remember they have a labor shortage because of the aging demographics there, but they are really unskilled a lot of them not employable, and they've also had issues with crime, so that's been a real negative and it's dragged every party in germany to the right as a result >> i've seen bits about protest votes, people want to make a statement. >> right >> on sunday >> there's been the question, again, if once again the populous right wing is going to be undercounted in the polls we're showing you right here, only 10% for the far right party. will it actually be higher because people don't want to admit, ditto like in brexit and the united states. >> in the details being watched and one signal of that, mark zuckerberg mentioning the german election specifically as number nine, the nine things he promises to pay attention to they are making sure, he says, that there are no irregularities, weird ads coming

out on facebook related to germany. >> they actually had to make some changes to what they were doing in germany because of the same issues that we saw with the way you label your political party, et cetera, a lot of people were getting a lot of far right ads thrown at them, even if they were, for example, liberal journalists. interesting. >> i can't wait for sunday we'll see what those numbers look like. let's get to sue herrera in the meantime for a news update good morning, sue. >> good morning, carl, good morning, everyone. iran unveiling its latest ballistic missiles capable of reaching much of the middle east, including israel this as the president rouhani vowed that tehran would press ahead with its missile program in defiance of u.s. demands. the unveiling came during a military parade in that nation's capital, which commemorated the 1980s iran-iraq war. angry french farmers in paris in protest once again against the government's agricultural policies.

sections of the avenue were smothered in straw as demonstrators brandished placards reading macron is killing farmers. walmart testing a new in-home service that delivers food right to your fridge. customers who choose to participate cannot only have orders delivered inside their home, but they can also request the grocery items be put away in the refrigerator and the freezer. not sure about that, but anyway. a rare christopher columbus letter detailing the discovery of america will be auctioned off on tuesday in new york it's expected to fetch between $700,000 and a million dollars that's the news update this hour back down to you, carl i guess that means if you're going to get the walmart delivery, you have to clean the refrigerator, and the freezer. you don't want anybody to see a dirty refrigerator that could get around. >> that's right, that's right. thanks >> you got it. when we come back, ratings woes for one of america's most loved sports, the nfl. why wall street is taking note

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apple ceo tim cook has arrived at an apple store in palo alto for the launch of some of its new products. a lot of debate as usual over the choices apple's made around the lineup, the innovation, the prices, and this year around connectivity of the watch.

jesse is the head of editorial for back channel and joins us now. jesse, great to have you back. so, i had some conversation with people on apple's side of things finally about this watch series 3 connectivity issue turns out it really just affects you if you don't have your phone with you, you just have the watch, say you go into a starbucks or hotel, some place where you had signed on to the wifi before already, then the watch might hang up. >> right, right. >> is this a big issue or just another bend gate, antenna gate, these gates we love to have around apple watches that don't end up denting sales >> this is an issue on two levels, you're right it's just a little thing, mostly not going to impact you, but since when did you hear apple say that's a little thing about anything i mean, i think -- >> bent gate, antenna gate >> but look, i think that this is yet another sign that we're seeing an evolution of the company, you know, this has been such an interesting launch

we heard all about it before it happened, then it happened, and now here we are, we're finding out about this watch connectivity issue before it's even shipped, before consumers even have it yeah, okay, it's a little issue. still, most consumers are going to be getting this watch because they want to use it as a replacement for their phone. if it doesn't work even sometimes, it's not going to work that well for that. >> so, when you look at the optics around this launch, it used to be if you wanted the products first, you had to get in line. it was a big cultural moment we're not seeing the lines this time some might say i put myself in this camp, that's because if you really are a big fan and want the products, you preordered them a week ago and the fedex truck is going to roll up this afternoon. >> right look, we're not seeing the lines. i don't think that necessarily tells us as much as you might think it would you know, as you said, many people may have preordered this. also apple is giving us so many different products, so many different options, that there are a lot of people coming in at

different levels, there are also a lot of people that are going to stop, wait a minute, watch, and then decide what pricey, fancy thing they want. not that they don't want the pricey, fancy thing, they just kind of want to figure out which one they want. >> we had an analyst earlier in the week call it the optimization of the demand curve, right, because the company had gotten to a size where the launch of one big product around the world on one day was not doable, right, no longer tenable given their supply chain >> i mean, that's -- you know, i would say this about that. that is an argument that supports apple but the old apple with steve jobs smiling down at it somewhere would have said, of course, that's doable. >> i'm really excited about wireless charging. then i read i shouldn't be, it doesn't work that well and still have to plug the thing in, so there's a wire >> i love wireless charging to work, as well, and i want it to be as reliable, as well. and, you know, maybe it's not here yet it's coming, so keep your

excitement maybe you're going to feel a little bit more let down than you would otherwise, because apple is giving you other things to be let down about, as well. >> jessi, apple used to say here's the one phone that everybody needs and, you know, you can get it in a couple of different colors, few different capacities, but here's the one phone. now they are saying from $349 all the way up to over $1,000 we've got all these various phones in the lineup and you should think of all of them as acceptable what does it say about, i don't know, where we are in the smartphone evolution or where apple is that they've gone to bragging about how few products they have, they've gone from that, to bragging about how many options there are? >> i think it suggests that we need to be looking ahead to whatever the next big platform shift is, because we are squeezing every last ounce of opportunity out of this platform, and, you know, i think that now apple has to say here's the one phone you need and the one television you need and also the one watch you need and if

apple has its way, it will make sure you, john, feel like you need them all eventually >> that's like what happened to the mac, right one mac in the beginning, then macs in colors >> the ipod, remember, the big one, tiny little ones, one you could run with, the shuffle. >> now they are back to almost no ipod. they've got the touch or nothing. >> right jessi, great to have you as always >> thank you very much when we come back, nfl ratings struggle we'll discuss what can turn that around, if anything. dow is down 27 meanwhile, rick santelli, what are you watching today >> i'm watching treasury yields and trying to decide, strategy or safety? you never know when the price is right. we'll talk about that a few minutes after the break.

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i'm scott walker here's what's coming up on the half-time report wall street's biggest bull is with us, morgan stanley's mike wilson will tell us how high stocks can climb and how to play the rally. plus, our call of the day is an airline stock that's struggled lately we'll debate if it's really worth your money now and the one stock value stephanie link is adding to her portfolio. all that and more at the top of the hour carl, see you in 15. >> scott, thanks ratings woes continue for the nfl. week two down 15%. wall street is taking note nfl gains generate more than $2 billion in advertising ref knew for broadcasters, but with options on the rise, just how could it affect earnings

amazon making its nfl streaming debut next week. >> i think the nfl is wildly popular, both in the u.s. and globally, and again we always look to try and see what content is going to be compelling for our fans and for, i'm sorry, our customers, whether it's domestic, international, sports, or nonsports, and you really can't ask for a better partner than the nfl, given how popular they are >> mike morris joins us this morning, media analyst with guggenheim securities. good to see you, thanks for joini joining us >> thanks for having me. >> characterize your view of what ratings look like right now. only a couple weeks in, some games down year on year, other games strangely sharply higher what's going on? >> i think it's still fairly early to tell. a season has to develop yet. we don't know which teams are good, which aren't playing as well we did see some of the local games tend to perform better

until we have story lines for the season and then the national games pick up a bit as theme in terms of people trying to see who's a potential playoff contender. >> people point to lots of reasons. obviously, hurricanes are affecting viewership somehow people point to politics, safety, player safety, and then the overarching dynamic of cord cutting. which do you think is most important? >> well, it's a good question. i think they all are i do think the biggest issue is probably the fragmentation of the audience i think you just had a guest from amazon speaking about how they want to partner with the nfl. there are really two issues with respect to how investors are looking at the nfl one is what's happening with the ratings right now and what's it mean for the current broadcast partners and what happens five-plus years from now when the contracts come up for renewal and their potential for new partners i will say at the moment we believe fragmentation is a challenge for the traditional

media industry i do think fears around the nfl are a bit overblown right now relative to both of those trends just given all the concern >> mike, how much of a potential game changer is amazon a couple of things they've said around their plans around the nfl were jaw dropping to me. number one, they are going to have a pre pre-game show that is going to be around tailgating and some of the things people might want to buy. i guess they are going to be selling barbecue tongs and that sort of thing. and the other just has to do with the way they are going to be doing commentary in different languages with higher levels of explanation for, say, a brazilian audience could that change the game, literally, for how media approaches the nfl >> it could. i think you bring up two very important factors that media and technology companies are looking at one is the ability to target an advertising message within the product, and one is the ability to take these products, the nfl in this case, and make it

globaler haglobal versus just national, so those are areas technology companies are stepping up with an advantage and something they'd look to exploit. the one counter i would say as it pertains to domestic distribution of nfl programming, broadcast is still the best vehicle to reach a mass audience two things are important there number one, i don't think the nfl wants to alienate that core aud yen audience so i think they'll continue that partnership with broadcast for a long time, even beyond the current contract, and the second thing is, there are fewer and fewer what we call top of funnel opportunities for advertisers to reach extremely large audiences, so while the pre pre-game show may be a great place to advertise a specific product to a specific person, the nfl broadcast will still arguably be the largest domestic way to reach a large audience for an extended amount of time and those prices will remain high as long as they are the biggest reach audience >> right finally, can we draw any lessons

from what nfl did for twitter and translate those into what it may do for amazon? >> it's hard to tell what i'd say is the data in terms of how much viewing there has been on other platforms. you mention twitter, i'd also point to yahoo!. new platforms airing the games the audience size for those platforms is magnitudes of what they would typically get, but the length of viewing, the sustainable viewing on those platforms is still incredibly low relative to somebody watching the broadcast, so i think what you'd see, there are a number of reasons the audience is down over the last two years. one of the biggest is daily fantasy sports, which doesn't get enough coverage, in my opinion, but what happened is you brought in a new viewer, who didn't stay there for a while, and that new viewer is probably still watching clips or snippets on twitters, snapchats of the world, you're keeping them in the nfl ecosystem but they are

not the core viewer of the product. >> right, right, different between watching a clip and three hours of the game. that's true. mike, fascinating to see how the season evolves mike morris over at guggenheim, thanks so much >> thank you we've got much more ahead on "squawk alley. take a look at some of the nasd week t-mobile up, mike ron, paypal and netflix. "squawk alley" is back right after this kevin, meet your father. kevin

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now let's get out to the cme group. rick santelli has the santelli exchange rick >> thanks, jon fortt you know, everybody, of course, is paying very close attention to the activities at the fed, the geopolitical issues of the day, specifically north korea, context of executive orders, but i will tell you this if you look at market and you need to trade markets through thick and thin we had our highest yield close yesterday. 228 going all the way back to i believe the very last day of july at 2.29 so there's time. maybe we'll take it out and you also notice that the rates have a propepsity to nsity to be on side up like it's been trading all week having said that, key areas are always define by important activities, like central bank meetings, so what i'm saying is pretty much every technician i deal with on this trading floor and those i deal with outside

the floor are looking at 2.27 as a pivot in the ten-year notes, so really on a friday where you have north korea in everybody's minds as a flight-to-safety issue, and we can see proof of that, it becomes a game of strategy versus safety and this isn't an easy one as a matter of fact, what i would say it is that the closer you get to the close, and many of you know this, the more the distance from an important area is going to take hold, so if 2.27 is the area and we're close to 2.27, that's going to mean something very different than if we're at 2.22. i guess what i really want to get at and go to the board, it's the notion of left behind versus another time real quickly, so if this is your pivot, and it's a friday going into the weekend, and we go up here and we start to come down, the closer we get to the close, the more the distance, is the more likely you'll see more downside but the catchup part is really important. if it gets through this, you i don't care safety or not everybody will have protection at the same area so watch where

we are in the last hour to give you big clues about treasury, especially for next week thanks very much. >> rick santelli, when we come back, a look at the stocks that have driven the week, plus some job cuts ahead for a big tech giant. we'll tell you who were "squawk atlee" comes back.

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our josh lipton caught up with tim cook a moment ago as the iphones go for sale. take a listen. >> reporter: are you satisfied, tim, with the early demand you've seen for the iphone 8 and 8 plus >> i am thrilled here's what we're seeing right now. the watch with lte, the series 3 watch, we are sold out in so many places around the world, and -- and we're working really hard to meet demand. we've sold out of iphone 8 and 8 plus in some stores, but we've got good supply there, and so you can see what's going on here this morning i couldn't be happier. >> there are -- you now offer, tim, a range of iphones. >> yeah. >> from 350 to 1,000 i know some people say that could confuse consumers. others say it's a broad

portfolio with a lot products and capabilities is that how you see it in. >> i think our users are really smart, and so they can decide what they want, and we try to help it guide them in our stores, and i'm sure the carriers are doing the same thing, but -- but we really like what we're seeing. >> final question, tim on watch i know you saw certain reviewers say they had connectivity issues how serious is that issue, tim, amend are you concerned that it could impact demand? >> well, it doesn't appear to be we're -- we've got a lot of work to do to catch up with the demand, but, no, the issues are very minor it will be fixed in a software update it has to do with the handoff between wi-fi and cellular, and we'll -- we'll fix that. it only happens in a rare number of cases i've been using it for quite a while, and it works great. it works great so we're really happy about it.

>> tim, thanks for your time appreciate it. >> thank you >> tim cook, talking to our josh lipton out in palo alto. >> lte version of the watch series 3, selling out in a number of places around the world. the iphone 8 in good supply, and the issues very minor, tim cook says, on the wireless thing. apparently some consumers think so because that version is selling pretty well, he says. >> so he said. >> have a good weekend everyone. see you monday let's get over to the judge and "the half. and welcome to "the halftime report." i'm scott wapner our top trade this hour, target 2,700. why one of wall street's top strategists say the market will hit that level this year with us, jon