kids don't have to be just passive consumers of electronic toys, they should be creators. so he makes programmable robots to get kids to learn to code now his business is taking offment for mooff. >> sponsored by american express open helping you get business done. good morning, it is 8:00 a.m. at apple headquarters in ku cupertino, california, 11:00 a.m. on wall street, and "squawk alley" is live ♪ ♪

good monday morning, welcome to "squawk alley." i'm carl quintanilla with mike santoli, morgan brennan here at post 9 of the new york stock exchange john fortt in san francisco. in a minute he's going to bring us a cnbc exclusive with amd's lisa su. you cannot miss that in the meantime, apple feeling pressure from investors. urging the iphone maker to tackle smartphone addiction and overuse by children. they write the potential long-term consequences need to be factored in at the outset and no company can outsource that responsibility joining us at post 9 this morning, elevation partners cofounder roger mcnamee and scott galloway, professor at the stern school of business happy monday good to see you both

what an interesting turn this is, roger. what responsibility does apple have to how my kids might use a phone? >> quite honestly, they have a lot. the culture of silicon valley has been about disruption for so long that people have forgotten there are consequences to disruption, and at the scale that the tech guys are at now, they have to take some responsibility now, apple in this case, i think, is nowhere near the worst offender in fact, they've been doing really good things for example, stopping auto play in the operating system, which is a direct shot at this very issue. they did that without any public pressure at all, so i actually think, yes, apple has responsibility, but they are one of the good guys in our scenario i look at this -- we've been working with common sense media, which is the ngo that does children and media, and so we've been trying to figure out who are the best and worst players again, apple can be really helpful and they are being helpful. i'd love to see them do more, but i don't think they are the one we should be worried about

>> why would they be targeting apple and not, say, facebook, which has, obviously, been a big focus? >> if they would take my phone call, i would ask them that very question, because with the hedge fund, they don't -- it's hard to see in their background that they are very focused on public interest issues. they've been historically trying to get higher stock price. i don't see what the connection is between this and that for the california state teacher retirement system, they have, i think, a very direct reason to be interested in this. they represent school teachers throughout the state and children are their business. and so i would hope that they are going to be persistently on this and hope they'll not stop at apple as i said, i don't think apple is the most guilty player. >> scott, let's take it back to how liable do you think apple should be? to what degree do they deserve to be a target >> oh, this is overdue if you had nestle producing an

ice cream that resulted teenagers to be more depressed or likely to suicide, we wouldn't be seating the ceo of dreyer's next to the president in meetings. the lack of regulation around serious issues only validates the notion that big tech gets the mother of all hall passes and isn't subject to the same scrutiny as the rest of corporate america. >> all right so, the mother of all -- i think you've used that before, mother of all hall passes what needs to change >> well, a, again, the same scrutiny if you want to produce a popsicle to give to kids, you have to go through all sorts of labeling and testing what kind of testing, what kind of warning labels are on instagram? anyone with young boys at home, as we have, knows that literally interrupting a 7-year-old boy's interaction with an ipad is something akin to taking the crack pipe away from the lips of

an addict and the emotion and the reaction it inspires so this is -- this is a real issue, and for some reason we don't feel a need or haven't so far felt a need to place any sort of regulation or warning labels on these devices or on social media platforms so this is, in a word, overdue >> is there a way to put the caloric content, equivalent to a warning label on the side of an iphone box >> yes, and it has to start with educating the whole world. these things, yes, they make us more productive and enlarge the world for us, but there is a dark side. i think too few of us have been conscious of the dark side to this point and the reason my partners and i in common sense media have been out trying to make hay about this is precisely on these issues i agree with the professor i think we're way past the time we need it it's election interference, it's empowering the government of y

myanmar to have a genocide, right? they use facebook in order to manage the population so genocide is acceptable i mean, that is -- i mean, facebook didn't do that, but it happened on their platform and at some level they have to stop that kind of stuff >> all right so i get the idea that the smartphone itself is the device, sort of the portal for kids or people in general to be engaging and maybe more so than they should be, getting addicted, et cetera, but going back to your long essay, interesting essay over the weekend about facebook, for example, and you made the point smartphones are changing advertising, but when it comes to social media, the advertisers are the customers, users are the product. when it comes to actual engagement on smartphone devices, wouldn't it make more sense to target the algorithms tied to advertisement and engagement >> in our view, that's where you need to start. apple has begun to make moves to

try to help us manage our lives online ending auto play, they've done a lot of things to support ad blocking and tracking blocking those are super important. there's more apple can do, but i agree, the algorithms and the business models of facebook, google, snap, and the like create the wrong incentives and have incentives to basically addict people and then to implant ideas in their head that are more profitable than the ones already there you know, there's a lot of science behind that, and the problem is, we as users have been -- have not been able to see any of it. everything is behind a curtain like the wizard of oz. in my mind, you know, we're trying to cause a conversation the fact we're talking about this right now is a huge step forward, because parents and adults, everybody needs to understand wait a minute, folks, there are real long-term issues if your usage is inappropriate >> scott, i wonder what you made of roger's essay

i wonder what you made of zuckerberg's discussion on how to fix facebook, and the degree to which this is coming from the companies and now hedge funds to some degree. you're not hearing the same ring from capitol hill. is this going to have to -- do you expect it to be self policed? >> well, first off, i think roger is fighting the good fight. i don't believe it's going to come out of -- i think regulation is coming, but i don't think it's going to come out of d.c i think it's strangely enough going to come out from an a.g. in a red state that gets a lot of the downside around job destruction, lack of privatization, and isn't getting a lot of the upside of the economic wealth creation of these companies, but most likely it's going to come out of europe you're talking about -- roger touched on this. we've had weaponization of these platforms by foreign adversaries. we've had apple say no to an fbi court-sanctioned swar

court-sanction court-sanctioned search warrant to get into their device could you imagine if rem defied a court order to get into a blackberry can you imagine the response to that on this show you try to have balance. you push back on me and other guests, try to pay deference to the other side of the issue. google and facebook algorithms try to figure out your bias and then move you further and further towards that bias. look at the right rail of your youtube view and you're going to see pretty quickly you're either a progressive or conservative and they are going to serve you exactly what you want and put you into your own ideological bubble so there are some very big issues here. >> we're back to talking about the value of human curation of any kind >> exactly and we are all stuck in these bubbles. i would say, if you don't mind me saying this, if people want to read the essay i wrote, it's at washingtonmonthly.com, it's the lead story this matters enormously, because there are 2 billion members of

facebook there are only 7 billion people in the world, so the number of people affected by this is so large that we can't just -- we can't just let nature take its course >> are you still invested in facebook >> i am. i want to be their friend. i would love to sit down with mark and sheryl and say, hey, guys, you need to act like johnson & johnson did after tylenol, we didn't cause this, but we're going to man up and take responsibility for this and do the right thing there would be an earnings hit, but i think the market would reward them with higher p.e., and more importantly, users would reward them with trust, which right now is eroding g geometrically. >> you've made that overture and response >> i'm making it right now on air on cnbc. i have tried through back channels unsuccessfully. i will keep trying, because these are my friends i'm proud of having been associated with the company, but i'm deeply, deeply concerned where we are now, and i'm doing the best i can to try to save them and help the country. >> roger, scott, we're glad

you're our friends helping us make sense of the times we're in talk to you next time, thanks. >> thanks, guys. meanwhile, shares of tech companies getting a lift, joining us on set, cnbc senior markets commentator mark santoli. it is a faang kind of day. >> it's a faang kind of day. a lot of people thought there would be a flip of the switch where faang was last year's story or 2015's story. it's going to be value stocks, industrials, banks, and so far, it's only the fifth day of trading, but so far there hasn't been this zero-sum game where one wins, the other loses. today faang is outperforming i think if the market remains on a good footing and people are bullish and as last week sees people worried, it's not going to set aside some of the best performing companies, the highest quality businesses with the best growth rates in favor

of, you know, energy, you know, production companies exclusively. so i think that's what we're seeing in the markets. >> i will note, though, if you look at some of the all-time highs today, a majority are industrial stocks. >> it's all working. >> renewed interest in those industrials, but one of the things you and i were discussing was the fact this has been largely considered sort of the most hated bull market, there's a sentiment or idea out there that the general public has not been participating, but you said maybe that's not the case. >> it's not quite the case i do think there hasn't been this kind of joy and outburst of greed in the public, excitement about stocks, but if you look at the exposures that the public has to equities, very high in fact, you have to go back to '99 and 2000 to get higher just because the market is up so much so that has taken portfolios in that direction it's a matter of how much can they tolerate it going higher from here. >> dependent on what the tvs are saying at local eateries about

bitcoin and amazon >> one anecdotal clue you can look for, yes. >> thanks. we have a big show coming up when we come back, exclusive with amd's ceo lisa su, the recent security flaws plaguing chip makers. shares take a big hit, nick woodman sat down witush last hour and you'll hear what he has to say when "squawk alley" comes right back

welcome back to "squawk

alley. ahead of ces i want to bring in a special guest here at one market, amd ceo lisa su. lisa, thanks for being with us a number of subjects i want to hit. you have new product you've announced, continuing from 2017, but first let's talk security, because it's been a big story. it's been moving amd stock up, it's been moving intel stock down how much of an impact have you seen and do you expect from this controversy over security problems with high performance chips, one of which it seems kind of affects amd to a degree and more of which seem to be affecting intel? >> first, john, thanks for having me. it's a very exciting week for us as we start ces in the technology industry, and absolutely let's talk about the security topic you know, i think security is one of those things as, you

know, a tech company ceo, this is job one for us. think about it as in the automotive industry safety is job one. when you have high performance processors, security is job one. last week several research groups did talk about some new security vulnerabilities that affect high performance processors, and i have to say, john, as an industry we've taken this very, very seriously. so over the past six months, i think us, some of our peers, our operating systems partners, have all been looking at this research that has come out and so it's around modern day micro processors, and the idea that as you execute some instructions, there may be some vulnerabilities that come up in the architecture and as it turns out, you know, you know very well these processors are billions of transistors, so billions, and each architecture is affected, you know, slightly differently in terms of how it operates.

so you may have heard some of the terms. meltdown, inspector, yes, it's amazing how many people are talking about those things i would say first around meltdown, what we've seen is it doesn't affect amd's architecture it's just the way we've chosen to implement some of these instructions in our architecture >> did you specifically build it that way to avoid that problem, or does it just happen that the way you architected it, that happens? >> it turns out when you're building these architectures, you have a lot of decisions to make for performance reasons, security reasons i think in this particular case we've implemented differently, we think, our implementation as a strong implementation and it doesn't happen to be susceptible to meltdowns >> but did you do it for security reasons >> a whole host of reasons, that's for sure.

then moving to the other security conversation around specter, this is broader it does affect our processors, as well as others. there are a couple of variants in there the first is, one, we believe as an industry we're doing a very good job in coming together, and so the operating system vendors are actually putting some mitigations in place, and that, we think, is a strongsolution. >> and that's the one where people are concerned about how much you might have to throttle the processor in order to make it safe. there were some initial reports it might be as much as 30% from some applications, but apple seems to be saying don't worry, it won't be that much? >> i think some of the numbers were around meltdowns, some of them were around specter to be fair, it's application dependent and processor dependent, so i do believe there are good mitigations in place. i believe there are some work loads you might see larger performance variance, but on

this particular specter, we feel the performance will be small. >> and the second specter variant? >> and the second specter variant is, due to our architectural differences from an amd side, we think it's rare, difficult to access out in real world applications, but i got to tell you, john, i said security is job one for us. we're being very vigilant, working with all of our partners, and we're going to continue to, you know, watch this space as it goes forward. >> bottom line, i know you're not one to go for the jugular on competitors in a situation like this, but how concerned should consumers be about losing data to real hack attacks because of this, whether they are an amd customer or a brand x customer >> i think consumers should realize, as an industry, we are taking this very, very seriously. all of the industry participants are taking it seriously. we believe that we understand much about these variants,

particularly on amd processors, you know, we believe that, you know, we have good mitigation plans in place, and, you know, we'll continue to upgrade security as we go forward, because it's just so important to us. like i said, it's job one. >> has this helped you make the diversification case, whether you're talking to your partners who you are looking to sell your pc chips into or looking in the data center, say, hey, maybe it's a good idea to have more of a mix of amd in there? i'm sure you've been working the phones and talking in person to your partners at ces >> we have definitely spent a lot of time with our partners and our customers. you know, i think our conversation is around the data center protecting our data, having strong commercial pcs and capability very, very important from an amd standpoint, i believe the data center is a big growth market, a place we're leaning into, investing in, and

we're absolutely telling the story about our performance capabilities, product capabilities the other thing i would say is, much of the conversation over the past few days has been around defensive security around, you know, these new research reports, but there's also a lot of offensive security we can put into our processers that means putting specific hardware capability in our new processors so we better protect users' data. that's very much top of mind for us >> nvidia, which competes with you on the graphics side, made some announcements around autonomous cars. you have an announcement you made several months ago with tesla, nvidia working with uber. how do you compare the two based on what you know so far? are you as far ahead, you think, in your relationship as they seem to be in theirs >> just as a point of

clarification, we don't talk about unannounced customers, so let me say that in automotive we're actually a very excited company about cpus it's a market where you're going to have incredible horsepower in these autonomous cars, and we actually made an announcement at ces where we're bringing out new processors that have machine learning capabilities that will be applicable in both the data center, as well as in automotive and other applications, so it's an extremely important market for us >> lastly, i got to ask you about these new rise in apus can vega graphics, and the price is underneath where intel is for graphics chips how much share do you think you have the opportunity to go after in 2018? >> when we look at the product

portfolio in 2018, we're extremely excited. in 2017 we launched verizon, ten product families that we launched as you go into 2018, you saw some of the announcements around our notebook processors, and those notebook processors give very good integrated capability, both graphics and cpu. from our standpoint, i think we'll gain steady market share in the pc market this is an important market for us when i look at pcs, at graphics, you know, high-end gaming, for example, we launched a new discreet graphics gaming chip that can go into thin and light notebooks. then as i mentioned the data center, these are key markets for us i think our 2018 product portfolio, frankly, is even better than what we put out in 2017, so we're feeling good about where we're going. >> investors seemed to like 2017, so we'll continue to watch you. lisa, thanks for joining us on one market and joining cnbc

exclusively. >> thank you so much, john >> morgan, guys, back to you >> thanks, john. amd is up 1.5% right now, 4% for the start of 2018. good stuff still ahead, more good stuff. meg terrell joins us live from france where the jpmorgan health care conference is under way she'll bring us an exclusive interview with emma walmsley when "squawk alley" returns. mmmmm. want some? it's good, it's refreshing. ♪ this is what our version of financial planning looks like. tomorrow is important, but she's only seven once. spend your life living. find an advisor at northwesternmutual.com.

the 36th annual jpmorgan health care conference under way in san francisco this morning. our own meg terrell is there and joins us live with a special guest. good morning again, meg. >> good morning, carl. joining us now is emma walmsley. emma, thanks for being here. >> delighted to be here, meg >> you took the job from april before that spending 17 years at l'oreal, so in some ways you're an industry outsider what's job number one for you? >> well, as i laid out very clearly in july, all three businesses of gsk have to

perform, but my number one priority is our biggest, most profitable, highest return business, pharmaceuticals. and at the beginning of that, that means we're very focused on executing the launches that we have in hand right now, and we have extremely exciting ones our new chronic pulmonary disease we're marketing right now. critically in vaccines, and this is a big launch for gsk on a new shingles vaccine this is a tremendous opportunity for the company. you know, one in three of us is going to suffer from this really debilitating disease that's you, me, or your cameraman, and we have 90, over 90% efficacy with this vaccine, which is why it's been given a preferential recommendation. that means it's possibly relevant up to 100 million americans. so we want to execute very well against the new launches and also our new dual therapies in

hiv, exciting new launches coming through there, too. and then beyond the operational execution short term is going to be all about r&d and preparing for the next wave of growth for gsk in the 2020s and beyond. and that's why i've hired a brand new chief scientific officer, who started all of four days ago, dr. hal baron from right here in san francisco with a long track record. and also a new global head of commercial pharmaceuticals, luke myles, who built up his career in specialty pharma across many different companies. so i'm super excited about building this dream team and executing, as i said, on all three businesses, but number one priority, pharma and at the heart of that, r&d, where we create value for patients. >> morgan, you've got a question >> i do have a question, actually there's a note from morgan stanley last month making a case for a dividend cut

should investors be concerned about the payout >> we've been -- thank you for the question we've been extremely clear on our capital allocation priorities since july last year, and there is, you know, absolutely no change in that whatsoever our number one priority is to invest in the growth of the core business, and first as i've said, there is pharma, then potentially should it come investing in the consumer, investing in capacity in vaccines then comes after investing in the long-term organic growth, the dividend and returns to shareholders we know how important this dividend is. we're very focused on rebuilding cash flow cover and we'll pay that dividend as a function of the cash flow. we've confirmed adp for this year, 2017, then we'll go back to declaring it quarterly. >> morgan brings up a great

question there was a lot of focus when pfizer said it was exploring options. potentially $15 billion price tag there. and on a conference call you sent a lot of people kind of thinking a lot about will gsk step in there. are you considering an acquisition of that business or merck's business >> sure, megan thank you for that question. there is absolutely no new news on the consumer deal at all. we are one of the world leaders in consumer health care. we have a strong track record of integrating businesses successfully, so you'd expect us to have a look at it, but, frankly, we don't need to do this deal. we certainly won't overpay for it, and nothing is going to cut across our number one priority, which is our pharma business and really focusing on building that pipeline for the next wave of growth >> and talking about r&d, your hiring of hal baron, that's got a lot of people talking this weekend. people are excited about him

he's considered a very heavy hitter in this industry. does that signal you're going to make big moves in research and development, licensing things in, changing things even more? >> of course i'm absolutely thrilled hal is coming to join us, and you're right. again, it is a clear demonstration of the fact we're prioritizing pharma and r&d, because this is, you know, the point of our industry and gsk is to discover, develop, and distribute medicines that make meaningful differences at scale. we already lead in global respiratory, leading portfolio in hiv and are innovating well there, but the decisionswe hav to make are going to be about where we might want to play in terms of new specialty areas, whether that be oncology or immu kn -- immunization

he's going to be looking in detail at that pipeline. and as i said previously, you know, we'll see what the data says, but also should we supplement it with some potentially external assets. you'll hear much more on that in the months and years to come >> stay tuned. thank you so much for being with us >> fantastic to be here, thank you. >> a lot more coming up, including on "halftime report" report, the ceo of celgene back to you. >> thank you very much for that. our meg terrell at jpmorgan's health care conference let's send it back to a news update with sue herera sue? >> thank you so much here's what's happening at this hour, everyone michael wolff, the author of the controversial new book on the trump white house appearing on msnbc's "morning joe," reacting to steve bannon's apology to donald trump in his attempt to refrain his quotes in the book >> he gave me the insights he gave me, and i don't want to put him in more hot water than he is

already in, but -- >> false >> it was not directed at manafort, it was directed directly at don junior pope francis calling for all nations to support every effort at dialogue to ease tensions on the korean peninsula and to work for a legally binding ban on nuclear weapons. this as his state of the world address in his annual speech, which is given to diplomats in rome takata is recalling 3.3 million more airbags as it expands the largest automotive recall in u.s. history it is recalling frontal airbags in certain 2009, 2010, and 2013 cars by at least 15 automakers you're up to date. that's the news update this hour back downtown to you guys. morgan >> i can't believe those numbers continue to rack up for the recalls. all right, let's get to seema with the european close. seema? >> stocks building on positive

starts this year, retail sales much higher than anticipated, portugal the standout, highlighting the european consumer is spending money on retail during today's session, the stock 600 index at its highest level since august of 2015 and hit a new 52-week high for the first time in two months once again, autos are extending last week's gains, a 32-month high on optimism about prospects for car makers volkswagon among the highest, the biggest winners in a driver-less car partnership. that stock up 1% on the flip side, uk software company micro focus tumbling and weighing on the ftse, saying it sees a decline on disappointing sales from assets acquired from hewlett-packard. that stock down 17%. also dialogue semiconductor giving up gains despite preliminary fourth quarter sales. dialogue has been plagued by

fears it could lose apple as a customer the stock down 0.8 of a percent. novo nordisk making a bid to acquire ablynx for $3.1 billion, but ablynx rejected the number, saying it undervalues the company. lastly, french president emmanuel macron kicking off a three-day visit to china, where macron and xi jinping will discuss trade, politics, and ties following brexit. france is expected to be a more appealing trader for china macron's visit we'll expect to see theresa may in china towards the end of january back to you. >> thank you very much seema mody as we go to break, quick check on cryptocurrencies this morning. ripple sliding by more than 30% in 24 hours. bitcoin and ethereum are down, as well. s&p into the green, a new record hi ghquawk alley" back after this see that's funny, i thought you traded options. i'm not really a wall street guy. what's the hesitation?

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shares of gopro sliding on shares of job cuts josh lipton brought us an exclusive with nick woodman a few moments ago and joins us now with more. hi again, josh >> carl, from $98 to a $6 stock. a more than 90% swoon from an all-time intraday high of $98 back in october of 2014 to now just $6 this morning

falling below a billion dollars in market cap. that's after a very disappointing report from the camera maker this morning, saying it's expecting revenue for the all-important holiday quarter of only about $340 million. the company, remember, previously guided to about $470 million. it's also going to kill off its drone business and laying off a lot of employees here. going from more than 1,250 to fewer than 1,000 we did speak exclusively with ceo nick woodman this morning. he said despite all the punishment this company has taken, not just today, but over the last few years, he does not regret going public. >> as a consumer product company, we're doing extremely well, as i mentioned, with the strength of our brand and strength of our products as a public company it's our job to translate that consumer success into profitability, and that's what we're focused on in 2018 the markets are fair, and i am still glad we took gopro public,

because otherwise we'd have far less visibility globally >> so, woodman trying to give a positive spin there that there's strong demand, as long as they are priced correctly he's now cut prices, but investors not buying that story. that stock touching an all-time low this morning carl, back to you. >> close to session lows right now, josh. thanks so much for bringing that to us. when we come back, exclusive interview with the ceo of harman first, though, rick santelli, what are you watching today? >> you know, i'm watching that ten-year note get ever close to 2.5% acknowledging friday's cpi, something big going on with inflation. you want to know what? tune in after the break.

how long can the industrial strength rally last? we'll debate it. plus, jim cramer is with us for the hour today and the one faang name called the best idea for 2018, even as baron's now wonders whether it's time to leave those stocks behind altogether. see you at the top of the hour, carl, about 15 away. >> sounds good, scott, thanks. let's get to rick santelli in the meantime and get the santelli exchange at the cme hey, rick. >> good morning, carl. so let's play a game here. right now i see a 248 in ten-year yields. 248. tips, treasury inflation

protected securities trading right now at 46 basis points 248 minus 46 gives you your break-even inflation rate. that happens to be 202 basis points aha, it has a two handle we all know 2% inflation is important, not only to our central bank, but to many like the european central bank, even though both economies might not be calibrated the same, they both gravitated to that arbitrary level. the point of the matter is, we've had many over the years, including janet yellen talk about things like verizon and prices in general, especially in some very large industries like tech that are putting downward pressure on future inflation well, that's a good thing. every day low prices at walmart for most people that's a good thing. for central banks it isn't i think in there lies a whole variety of issues that ought to be re-evaluated by jay powell and maybe others, but the point is, today is special so knowing that break-even rate,

let's go to the board. now, if we look at a short-term chart, this goes back to march, right now that 202, 203 break in rate taking ten years minus tips is the highest level since march. it's been down a bit briefly in mid-year 2017 to around the 170 level. so we want to pay particularly close attention, and the reason i'm doing this today is because we have ppi and cpi this week. ppi is much more important that's friday. we're expecting a year over year headline of around 2% plus last look, 2.2, we were expecting 2.1. if you look at stripping out food and energy, last look was 1.7 and we're looking for 1.7, but these numbers are all getting close. what i really find fascinating is if you go to the break-even chart and make it a ten-year chart starting in 2007, what you'll find is the fed started raising at the end of 2015 basically, since then we've only had a flirtation above 2%, even

though we've had much tightening since then of course, that goes back to this march but if you look at previous, especially from about 2011 to 2015, we had a good deal of activity where the fed didn't act. the long and short of this is, the fed is raising rates because it needed some insurance obviously, inflation was higher, at least on this metric. the point is, if you think the long end is too tame and rates need to go up, then you need to watch friday's cpi and see if it's hotter and monitor above 2% back to you, morgan, at hq >> all eyes will be peeled on friday then. when we come back, the ceo of harman joins us an exclusive interview you don't want to miss it. "squawk alley" back after this at fidelity, trades are now just $4.95.

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welcome back to "squawk alley. audio always a big part of the consumer electronics show, and our next guest making some big announcements there. harman, now opened by samsung, is launching a digit-at-platform concept for vehicles as well as a car displaying fully autonomous capabilities. dennish palawahl joins us live this morning good morning. >> good morning. >> i want to talk about the digital cockpit, a fascinating idea from a screen you'll be able to control the mirrors, you

know, the environment in the car, the lights. some tesla owners might be somewhat used to this already. how quickly can this really get into the market though because isn't the instrumentation something that carmakers like to hold pretty close to the vest? >> so, it's all about using experience and bringing the whole ecosystem together so people are so used to with their smart devices, whichever phone you use, and you have some kind of an ecosystem at home and on the go and in the office, so digital cockpit is one area where you can really bring it all together from multiple systems in the car, instrument clusters to big stream and entertainment, and last year we actually launched our first generation digital cockpit and this year we're launching our next generation digital cockpit and i'm very excited about it because this is where we're bringing all together our cloud applications, cyber security, safety aspects to it and keeping

in mind the user is first pause autonomous doesn't mean among mouse, a -- doesn't mean monogamous. >> one of the things i like to try to do is separate the hype from reality, especially around events like ces, and this year, as for the past couple, voice control, amazon, alexa, microsoft, cortana, google home, they are being talked about a lot. i know you've got the smart speaker collaboration with microsoft going but how important is voice control for the speaker market right now, and how much margin are you able to add by building that into your products? >> reporter: that's a great question you know, voice-enabled is one of the user interface. you make it simple, intuitive and easy to use for anybody, whether you're tech savvy or not, so harman has taken an approach over the years that we're really bringing the best

in class design and the sound quality, and we've made it agnostic to work with amazon, google, microsoft, and, of course, samsung, our parent bixby, so we're bringing all our products with these interfaces so users have the choice, which ever you're comfortable with and you want to use, so, look, this is only one year, less than one year after samsung acquired harman and we have a lot of exciting things to show samsung here and the whole connected smart iot and same with harman from home, smart speakers, connected car and connected enterprise, so this ces is very exciting >> talk to me about autonomous driving, is this the new 3-d-tv, something people talk about a lot and get demoed on the floor and really has very little application in people's everyday lives or is it something else? what do you think is driving all this conversation around autonomous and your own efforts there? >> yeah. so autonomous is a journey, to

be honest, so at the moment you've got a few million cars with some sort of an automation. if i do a simple scaling from will -- from l0 to l5, still lots of things have to happen as we're not even to l21. need a big pipe, five gs, one to two gigabyte per second so you can bring in content and as soon as you do that you need cyber security harman was the first that we brought cyber security and other technologies so right now we have contracted 130 million clouds with our over there technology and cyber security coming in, so a lot of steps have been taken towards, but i call it it's a journey we're making it safe, secure,

reliable and at the same time keeping the user experience very fun so in 2025, 2026-'27 that's when you start to see l3 and l4 coming in and we'll be very ready because we're the only company from hardware, software, interface, artificial intelligence, we bring it all together into an ecosystem. ra thanks for giving it to us stight >> thanks very much for that "squawk alley" continues after this (barry murrey) when you have a really traumatic injury, we have a short amount of time to get our patient to the hospital with good results. we call that the golden hour. evaluating patients remotely is where i think we have a potential to make a difference. (barry murrey) we would save a lot of lives if we could bring the doctor to the patient. verizon is racing to build the first

and most powerful 5g network that will enable things like precision robotic surgery from thousands of miles away. as we get faster wireless connections, it'll be possible to be able to operate on a patient in a way that was just not possible before. when i move my hand, the robot on the other side will mimic the movement, with almost no delay. who knew a scalpel could work thousands of miles away? ♪

is it the oprah effect weight watchers up more than 12% after all the attention on her speech at golden globes last night. 3 billion plus market cap company, but the 12% gain pales compared to the year gain, right? >> 12-year change up 341%, so we saw netflix, hulu, amazon take home awards from golden globes maybe weight watchers is the biggest winner. >> an amazing gain a lot more coming from ces tomorrow the ceos of roku, qualcomm, pandora and more pandora today downgraded over at morgan stanley to equal weight and we'll keep an eye on the

chip weights, ha md and nvidia continue to be among the gainers. >> and qualcomm, interesting to see what they say tomorrow. >> an incredibly busy week with the inflation data that rick referenced and, of course, the banker earnings that are coming our way on friday. let's get over to the judge back at hq and "the half. ♪ well, it's one for the money and two for the show and three to get ready ♪ >> welcome i'm scott wapner industrial strength real, why the group is still surging and if truly is the best place for your money with us for the hour today, joe terranova, stephanie link, pete najarian and jim cramer. he's the host of cnbc's "mad money. let's begin with the markets stocks are slightly lower, kind of mixed, but still posting their best start to the year since '06, and much of that is on the back of big name industrial stocks, and, jim, it just continues today cat gets upgraded and uts, barron