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and 11:00 a.m. here on wall street and "squawk alley" is live ♪ what else should i be ♪ all apologies ♪ what else could i say ♪ everyone is game ♪ what else could i write good morning welcome to "squawk alley." i'm jon fortt here at post nine with kelly evans and deiedra bosa facebook softening through there morning's session. mike santoli here with us to put that in perspective. the dow off 1.5% >> and facebook a part of that whole market selloff nasdaq leading us down this market right now doesn't have a real good answer when

both big tech and the bank stocks are down. the two biggest sectors out there and i think it's partly a take away from the fed yesterday. it's partly getting caught up in okay, did we get a little too overexcited about the future of t faang type stocks? it's almost as if you could have taken the same exact press briefing, the same exact statement and turned it bullish. it was kind of a goldilocks story. >> we were saying that yesterday. >> exactly >> it was a war shot test and all that it's interesting bank of america is down 3% >> and the bond market is reacting with lower yields that is taking some of the air out of the banks, as you know. i do think it's kind of a question of we are in the world we thought we were in before the fed meeting. but that still leaves us in a little bit of a limbo state. the market stuck in this weird neutral zone between those february lows and the highs. a little bit of technical stuff is not friendly for the market right now. it is crossing down below the trader watched averages. so a lot of that going on. i don't know that it changes the

overall story in terms of expectations for growth and all the rest i think not enough we're talking about the fact that we have a kind of global economic soft patch that's accompanying everyone being geared up for an overheating economy. >> how much it is also on trade warfares right? you have the tariffs on china coming out how much is that playing into it >> exactly a crucial piece of it today, for sure it's a really handy excuse to get a little more defensive. i think it's another reminder that policy went from being, you know, all the goodies last year when it came to tax cuts and deregulation and now it's a little bit of a more uncertain ground so i don't think people are really expecting trade war i was saying before, if it becomes a contest chf country has a higher pain threshold, i don't think we're going to win it. >> i mean when you look at some of the stocks that are off, even in tech, alphabet, google is off nearly 3%.

media stocks, we were talking about, comcast our parent down about that much. but also roku. it seems like there is a real mix of companies doing worse than the major indices >> there was this whole theme of whatever new media was going to be i don't know why the cable operators necessarily are getting wrapped up into that as much except the same people only those stocks so if they're all pulling back and getting defensive, that gets in the way the underperformance of alphabet and facebook relative to amazon and netflix has been very profound for a while now todays it kind of coming altogether >> market is probably worried as well, what regulation did zuckerberg say or do enough yesterday. we'll be discussing that >> there is no doubt there is a premium being bled away from facebook obviously the case on facebook was the network prints money on its own without a lot of intervention and without a lot of regulation. so we don't know how it's going to turn out. but that particular story seems to be changing >> all right mike santoli, thanks

>> now let's dig into facebook the stock rocked this week mark zuckerberg breaking silence last night about the cambridge analytica data scandal admitting the company made mistakes with users' personal data >> there was a major breach of trust. our responsibility now is to make sure this doesn't happen again. facebook testifies in congress regularly. so if that's me, then i am happy to go. we need to make sure there aren't any other cambridge analyticas out there i'm not sure we shouldn't be regulated. i think the question is more what is the right regulation i'm really sorry that this happened >> joining us now is chris moody, former vice president of data strategy at twitter and currently a partner at boundary group. chris, good morning. >> good morning. >> so to my ear, it was a very polished, kind of political response from mark zuckerberg. he said i'm sorey. i feel bad we're going to restrict data

access we're going to hunt down your old data even though we may not find all of it now you were the ceo of nip which twitter bought for $134 million i think it was that was all about being able to monetize dat yachlt a. is this going to change platforms for facebook and at which time eastern alter the market for big data? >> well, it's going to have to change things for facebook for sure when i look at what mark said last night, i really thought there were two things. one, he was, you know, he was completely apologetic about the fact this was facebook's mistake and completely felt sorry about. that the other piece was when he talked about their plans to fix it, i was really surprised that, first of ll, the right things to do to fix it. but when he talked about how to fix it, he was talking about things that, for example, in twitter's case have been in place since, you know, 2010.

so i was surprised to see -- >> for example >> for example, you know, talking about hey we're going to actually take a look now and see what these companies who are sucking down huge amounts of data are doing with it well, you know, twitter started doing that in 2010 when they started making data available. heavily vetting not only initially what companies were doing but on going auditing and monitoring so i think it speaks to the fact that problem was systemic and, you know, its going take a pretty big chip on their part to change >> chris, i know that zuckerberg has plans in place is this an impossible task for him? he wants to go back and see who has this user data he can realistically do this can he put the jeannie back in the bottle >> no. i think there is two things. again, i think there is he change the process going forward around protecting user data? absolutely not easy we're talking about a massive effort i think it will take years to get done but the problem with the data

that they were sharing, this private data is it's valuable over time. your e-mail address and phone number and some of data is valuable five years after you've given it up and that data is out there. lots of people have it and there is really no way to pull it back one of the advantages we had at twitter was -- i was going to sash say, twitter data goes away. a week after somebody tweeted something, it's not really as relevant it's not private information this data has real staying power. >> chris, isn't part of the issue here probably a large percentage of the firms that were dealing in facebook data back then don't exist anymore. rock roku or all of these video viral video apps that were hot for a while back then, these quiz apps with weird names who knows who they sold that data to? i'm not even sure there are enough private investigators and forensic data analysts out there

to track down the chain of what happened to the companies much less what happened to the data >> exactly right i remember at one time i looked at the thousand or so companies that were ingesting twitter data and the vast majority of them were venture backed companies. we know venture backed companies, nine out of ten fail. those companies are gone we really don't know what happened to the data >> that being the case and though mark zuckerberg said he's happy to testify, he also made the case that seemed like practically every other employee at facebook is more qualified to testify before congress than he is so it sound like he's going to be trying to send somebody else. how important from a reputational perspective do you think it is for it to be mark zuckerberg himself sitting there fielding questions from lawmakers? >> first of all, i think mark is right. there are people that are deeper in the weed and once congress wants to get into the weeds, won't be best person i think it's critical that he

stand up there and talk about, you know, how facebook has thought about user privacy in the past, what steps they have taken and the broad strokes and more important what's going to be the north star going forward? how are they going to think about and ensure building trust with users going forward >> all right thank you, chris moody and a programming note don't miss our interview with cheryl sanberg coming up at 4:00 p.m. eastern >> now to this morning's other top story, the opening arguments are about to get under way in the justice department's lawsuit to block at&t's $85 billion merge we are time warner hampton pierson is in los angeles with the latest. >> hi guys so we're less than a half hour away from the opening arguments in the long awaited face-off between the department of justice and at&t and time warner over their proposed merger first of all, all of the principles are now inside the

courthouse including at&t's ceo randal stephenson and also time warner's ceo jeff bukus who i did have a chance to ask a couple questions of as he entered the courthouse what's at stake for consumers with this trial today? >> we want to give them better programming. >> what is your sense with the government's belief? >> i don't want to talk about the case before the court. so let's still go to due process. >> is it long overdue to get to this day >> i think we ought to get on with it. >> time warner is at the centerpiece of what this fight is all about, at least from the government's standpoint. government is arguing that it is that time warner must have content that would make the combined company, merge company such a power house in terms of their ability to charge higher prices for both their distribute yo or and content competitors at&t is going to argue that, no,

the government has it backwards. they need to team up to compete with the online competitive likes of facebook and amazon, netflix, google, the usual suspects if you will this trial expected to last six to eight weeks but we are finally at the real opening of this long awaited anti-trust trial back to you. >> all right hampton, thank you very much hampton pierson in washington. we have a big show ahead coming up, amazon bought twitch back in 2014 with a big bet on gaming and it's continued to grow on monday we spoke to gamer and twitch star tyler blevins known as ninja about amazon's push into the e-sports biz. >> a lot is coming from the twitch prime subscribers we just hit five million subscribers on youtube as well and instagram hit a million followers and almost there on twitter. the combination of all those things is really where -- just the collective revenue is coming from and, i mean this deal that

amazon prime and twitch prime have together is incredible. twitch prime allows people to, like, claim loot and collect loot with specific games and they recently did a deal with for the knight which is the hottest game right now and that actually is one of the main reasons of influx of subscribers currently to my stream >> even i'm hearing all about fortnight. the bezos backed of twitch is with us at 11:30 eastern

welcome back market selloff this morning, got breaking news with dominick. what we got right now is a very interesting story developing here out of "the new york times. they have now learned that the banking giant citigroup is now setting a lot of restrictions on the sale of firearms by its business related customers it would be the first wall street bank to put some of these restrictions on business customers with regard to the sale of firearms the new policy they say announced on thursday prohibits the sale of firearms to customers who have not passed a background check or who are younger than the age of 21 it also bars the sale of so-called bump stocks and high capacity ammunition magazines. it applies to clients who offer credit cards backed by citigroup or borrow money or use banking

services or raise capital through citigroup itself so a very high profile name on wall street, banking giant like citigroup, inserting itself into the national gun debate. we'll, of course, see if this leads other financing type companies to follow suit but a very big story here out of "the new york times. we'll be following it closely. kelly, back to you >> this actually sounds pretty broad. can you just say that again? this isn't just -- these are -- these include credit cards backed by citi, companies that may do business or use the capital markets and banking services >> correct >> citi is one of the biggest banks in the world >> yes, it is. the question becomes how much business does citi actually generate from the people who have services tied to perhaps the guns and ammunition industry, the firearms industry or use citigroup's capital raising services we have reached out to citigroup for a comment. and for them to clarify or give us more specifics with regard it to we'll bring you the details as we know them here. but when they do say they have now -- they want to prohibit the sale of firearms to customers

under the age of 21 and who have not passed a background check. also the sale of high capacity magazines and bump stocks. those are the headlines that we know right now we'll wait to see if citigroup puts out a more formal outward bound announcement with regard to this policy we reached out but have not heard back yet. >> i imagine they're going to have to. they'll get a ton of questions shares are down. but in line with the banking sector thank you very much. >> kelly, this sounds a lot like what our andrew ross sorkin suggested in "the new york times" column about a month ago, how banks could control gun sales if washington won't. >> you have seen the smaller financial services firms do this but at the scale of citi, that is huge. >> the american banker editor and chief came out with an editorial saying he thinks it's not a smart idea for banks to get involved in politics and citigroup being one of the biggest and arguably can kind of set the tone is a huge deal that they would actually go and do something like this. >> it shows that you it's getting harder and harder for them to stay out of this

political sphere. >> we can also look at the example of dick sporting goods which adomentpted some of the policies shares were lower after earnings they politicized the issue for them more than they intended >> it raises questions for the credit card companies that have taken a very neutral stance so far and said we're going to keep that stance. i wonder if that sticks now that stity group has come out. >> we'll bring you more information as we get it mark zuckerberg did break silence apologizing to facebook's users our next guest says the worst is not over for zuckerberg or the company any time soon. join us is the former ceo at t-boy, tom rogers. he is also a cnbc contributor. welcome to you, tom. what do you think mark zuckerberg could, should have done here? we're going to hear from cheryl sanberg later too. what does the company need to do right now? >> three elements to this. this a very unique situation creating a lot of very unique political theater out of which

there are some very significant subinstantive issues that need to be addressed. this is really something that no ceo has had to deal with this is business story this is a political story. this is a tech story this is a pop culture story. you got democrats and republicans coming at him. you have the uk and the u.s. governments. you got the eu involved. you have an ftc con sent decree issue. you have a mix of things here that go beyond -- well beyond a normal data breach that we've seen before. you have a company that basically touches every human being on earth in the developed world. and so in some respects, he's dealing with a set of issues and burdens that go well beyond what anybody else has done with but in the political theater that that creates, political theater, like regular theater, has acts act one ought to have been the curtain goes up -- >> let me stop you there are you saying he's unfairly

dealing with this or you are saying that this reflects how unique a company at facebook is and how interwoven it is in our lives? >> it's a unique situation he's dealing with which is way more complicated than any of the things that we've seen before in the data breach world because it is a unique company. and the forces coming at him is a result but that creates political theater. and political theater like regular theater has acts and the first act ought to have been the curtain goes up and say i profusely apologize. and we want to be transparent. i'm ready to testify obviously, the curtain went up and he forgot his lines. he wasn't. there he was silent. act two is you go before congress and you say we're here to help. we're ready to sit down and talk about legislation that makes sense. he kind of confused that with a soft maybe we should be regulated that he said as part of the first act that was misplaced because that's when the lights are really going to be on him. that's when the brand is really going to be exposed. when you go before congress and

every member is going to be sitting there, i used to be counsel to a congressional committee. i used to put on the hearings, everybody is going to be there trying to beat the crap out of him and the line you want to have ready to go threaten is we're ready to sit down and work out legislation. that leads -- >> tom, sorey. i also -- in one of the interviews yesterday, zuckerberg appeared to get philosophical. he said am i the one that has to decide and set these rules how do i decide what is hate speech or not or does he let the community decide that feels like another very difficult task but if facebook is in fact a media company, should he be deciding those limits? what are your thoughts on that >> act three is get this out of the headlines and make this from his point of view a boring regulatory issue where you have a lot of cross currents with parties on both sides of the issues and you want there a multiparty debate with a the love people sitting in there trying to work it out as opposed to all aiming at him

now there are a lot of issues here the ones you discuss there is the issue that he raised yesterday well, we'll restrict data from third party acts t well, what does that really implicate that implicates the issue of you got facebook and google already taking 103% by some calculations of the mobile advertising market, the more they restrict data to third parties, the more difficult it's going to be for other parties to be involved in the marketing and advertising game you got the issue -- >> tom, it sounds like mark zuckerberg doesn't even want to go before congress and testify he said he's happy to. but then he said well we have all these people at facebook who are full time focused on the issue that congress is going to have questions about implying really those are the people who should be out testifying in front of congress. does he need to in order for this play to end as a comedy for facebook and not a tragedy >> there's no doubt about that i mean, look, there is political theater. he's the lead actor. the lead actor can't avoid the

stage. you got to be there. you got to act as if you are ready to work with regulators. he kind of used that line in the wrong forum. but it's the right line. and he's got to go before congress and he's got to say that now what he is dealing with there is the judiciary committee, the commerce committee, the intelligence committee. this is a multi -- multiple rounldz of theeter that play out here and in some respects if, you have multiple committees on both houses coupled with multiple party issues with people shooting back and forth on them this is something that he can get out of the fire of and not be the sole person taking the heat but you got to get to the next act very quickly >> tom, thank you very much for joining us tom rogers there on facebook as bhengsewe mentioned, shares e lower. dow is down 425 points this morning. the selloff that we're seeing is

intense f inten intensifying >> facebook shares also continue to head lower. paul holland is general partner with foundation capital, a very easterlyin' vest early investor in netflix. wall street is split on the issues some brokerages are saying that maybe this is something that will pass. dhoenlt belie they don't believe that regulation is going to go through. others are lowering targets. what do you say here >> i think when we see something like this, the you know, sort of a massive sue ntsunami of news d one company, it's hard to maintain a sense of speshgtivpe, i'd go with the bank that's are choosing not to overreact to what is happening in the short term facebook is a phenomenal business it's one of the fastest growing businesses in history. i got to a billion dollars faster than anybody else once they turned on the monetization. this is a serious issue.

people are trying to find a way to regulate social networks, advertising based businesses, any number of things for some time i'm certain over time it will lead to more regulation. however, if you look at some of the valuable companies in the world, they're in businesses that are regulated so i don't think that in and of itself is going to make a difference in the long term value of facebook. in the short term, very, very choppy >> regulations maybe but facebook has lost a lot of trust with the users out there so if this affects user engagement, delete facebook movement, how much does that worry you particularly in terms of advertising dollars which is really what is going to be at stake for facebook >> in the short term, i expect that they'll see some sort of blip associated with this as people react to, again, this big wave of news in the medium and long term, i wouldn't be concerned in the least. ask around among your friends, ask among the people in your network, how many people are actually going to delete the facebook pages and where are they going to go as an alternative? facebook has become -- >> good point.

>> facebook is a monopoly of sorts for sort of people 20 and over now for the rest of the community, i got three teenagers. they're all on instagram guess what that's facebook. so i don't think this is going to be a much an impact on facebook in the longer term. >> paul, taking a look at the broader markets, mine, iti meano just facebook, alibaba, roku, alphabet, lots of big tech stocks are down in this market over, i don't know what. is that something that is affecting the mood out in silicon valley is there a sense that things got a bit topee? what do you attribute this to? >> i would attribute what you're seeing around alibaba and google and others, anybody that has social flavor to the business, i'm sure they're being affected by this big kind of current news story that is in the market today. in terms of the rest of the business, you know, quite frankly, everything's going pretty well from that perspective. yes, i think all of us who kind of study the macro are now

looking at a ten year bull run and so forth but if you look at what happened particularly in the domestic market with the tax law changes, the amount of money that's going to be repatriated into the business, in my opinion i think there is a chance we could be mising what is really happening under the covers mulesoft got bought for $6.5 million earlier this week we're seeing a record amount of m & a activity i think that's going to increase as we see these dollars coming in on to the balance sheet of these larger organizations what are they going to do with the money? you know, their stock holders are not going to allow them to sit there with hundreds of billions of dollars of cash. i think what we're going to see, i think today is a tough day in the markets. we see tough days in the markets from time to time. but, you know, sort of the medium trend from where i can sit today is that there is still upside left in this market >> paul, you just mentioned mulesoft another cloud company. dropbox tomorrow and given the environment what we're seeing in tech right now, any anticipation of what we might see

>> well, i'm certainly excited about the dropbox ipo. i think 2018 is going to be a very significant year for ipos we're only in march. we've got some big ones cueing up we have big m & a with mulesoft and others i think the trend line that i would accent wait around the ipo sz the cloud you look at dropbox when is cloud based storage. and luke at spotify where our former cfo at netflix is now coo, that's a subscription based business for entertainment we know how those businesses work i think the whole trend of the cloud going public is the big thing that we're seeing here in 2018 i think it's truly a big deal. this isn't one of the little tiny waves of activity this could go on for a few years. >> okay. paul, thank you very much for your insights. paul holland markets, the dow down more than 400 points now we've got two pieces of breaking

news from washington that might be contributing to this selloff. zblfr there's been some upheavel on the president's legal team. "the new york times" and "the washington post" both reporting that john dowd who was leading the white house and the president's response to the special counsel investigation into russia has resigned this comes just a few days after the president added joe digenova to the team who has been pursuing a different strategy. we are going to be efforting some confirmation from the white house but that is what "the new york times" and "the washington post" is reporting on the trade front, we're expecting a major announcement from the president within the next hour on new tariffs against china, specifically in the technology area. across pennsylvania avenue, the top trade official is testifying on capitol hill and he referenced a report, a blueprint from china called china 2025 that is basically laying out china's attempt to upgrade the manufacturing and technology sector and he specifically says

they will be drawing from that list to levy tariffs listen >> let's hear all ten. >> you're going to think this is america in ten years aerospace and aeronautics equipment, maritime equipment and high-tech shipping, modern rail transport equipment, new energy vehicles and equipment, power equipment, agriculture equipment, new materials and biopharma and advanced medical products >> the administration has been looking for ways to limit the impact of the tariffs on consumers to make sure they don't result in higher prices for products that consumers regularly buy. that is something that would hit corporations more than consumers. but they are hoping that the large part of the economic impact is felt by china. guys, back to you. >> all right thank you. to her point, boeing is down

3.4%, caterpillar down 3%. aerospace and ag equipment, two of the industries on that list we'll have much more with the dow off more than 400 points few gainers in the nasdaq 100 when we meig bk.co rhtac feel that? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow. he gets the best deal on the perfect hotel by using. tripadvisor! that's because tripadvisor lets you start your trip on the right foot... by comparing prices from over 200 booking sites to find the right hotel for you at the lowest price.

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the house intelligence committee voted to approve and release the gop's report on the russia investigation the information declassified before it can be made public this will officially close the panel's probe. mortgage rates edging higher once again in the latest week. freddie mac says a 30-year fixed rate loan is 4.5%. a box of cheerios could soon cost you more. the cereal maker general mills says it will raise some prices to account for higher ingredient and shipping costs and thrill seekers got more than they bargained for when a roller coaster got stuck mid track at an amusement park in a strala today look -- australia today. it shows six passengers hanging vertically after the ride was ha halted for 30 minutes. that's the news update this hour back downtown to "squawk alley." jon, back to you

thank you, sue we're keeping an eye on markets this morning all the major indices down significantly. the dow down about 440 points. the nasdaq off nearly 2% it is faring the worst s&p off 1.5% not really a lot of stocks being spared in this environment. >> look at the nasdaq 100. there are two in the green is that walgreens and boots or something? micron is leading the selloff in the bottom right hand corner you can see j.d. down there. >> and sea trip is a chinese consumer company you don't know if they're informing tit for tat there. these are platforms that don't have as much to do with boeing and cat pill areerpillar >> it is a half a trillion dollar stock this will have an effect it is everything here. you have trade worries you have more political

uncertainty. we have the faangs now >> when i look at the tech stocks doing the worst today, chitian down 5%. >> is that the q one >> yeah. baidu is down six. alibaba down nearly 5% as you mentioned, a lot of chinese names. >> yeah. real quickly, we were showing the dow 30 as well there some of the worst performers including caterpillar and boeing these are companies that boeing was one of the best performers during the spike higher this year it's been under pressure every time trade issues come to the fore we'll hear from the president in an hour with more on this. a couple of names in the green, coca-cola, p & g and merck >> all right when we come back, amazon's twitch is the live streaming platform that lets gamers broadcast their games. stream them live it has millions of users you're looking at a live shot of ninja. tyler brevins broadcasting this current game right now

you can see the cash registers making a lot of money. drake played game with him earlier this week. take a listen to that session which tracted over 600,000 viewers. >> how long you have been playing fortnight? >> probably like for about a month or two maybe >> you know, we stay in the studio for so long, like, sometimes like 20 hours. you know, 15, 20 hours s to it's just nice to take a littlemental break >> ninja started from the bottom now he is streaming. the ceo of twitch, the platform on which he is streaming joins us after this break. and we even got some questions for the twitch ceo from tyler resqwkll" ralf mo "ua aeystight ahead.

coming up top of the hour from the halftime report from the stock exchange, we're all over the selloff here on wall street the president getting set to announce new tariffs on china. it will happen in our hour we'll trade the reaction as well plus, we'll have an exclusive interview today with the co-founder of the company that would become facebook, divya narendra will be here live as the fallout over the data scandal continues to hit the company and its stock. and jon and pete will have the latest dose of up unusual activity as well do not miss a jam packed hour right behind me post nine. we'll see you in just a bit. >> we'll keep the seats warm for you, scott >> earlier this week tyler

"ninj "ninj "ninja" blevin joined by drake you just heard a little bit of that take a listen to what tyler bleble blevins had to say about the success on the platform. >> the income is coming from amazon and twitch prime subscribers. we also hit five million subscribers on youtube as well and instagram hit a million followers. the combination of all of those things is really where the -- i mean just the collective revenue is coming from and i mean this deal that amazon prime and twitch prime have together is incredible twitch prime allows people to claim loot and collect loot with specific games and they recently did a deal with fortnight which is the hottest game right now. and that actually is one of the main reasons of influx of subscribers currently to my stream >> emmitt sheer is the ceo of twitch, acquired by amazon in

2014 he joins us now. emmitt, good morning >> good morning. >> so when you guy dz this deal 3 1/2 or so years ago, four years ago, i recall google had been kind of sniffing around also and that seemed at the time like a more natural fit i mean it had youtube and streaming. but amazon, you guys and amazon seem to have especially turbo charged the relationship over the last few weeks with this deal linking amazon prime to twitch prime, giving away in game stuff, telling teenagers, you can use your parents' prime account to get good stuff on twitch what is behind that? why the marketing spend? what is the model? >> what's amazing about the twitch prime deal is that we get to sign up new prime members which obviously is good for twitch and good for amazon and give great benefits to the people who sign up and also to the streamers on the twitch

platform who want to get access to new subscribers it's one of the very rare business deals where actually everyone wins. the game companies win, twitch wins, the streamers win. and the viewers win. i think that's a -- that's kind of amazing, actually it's one of the things that the acquisition i think that's been most beneficial to twitch. >> so emmitt, redefine for us what twitch is right now because i mean it got popular as a game streaming flat form but for a while, at times it seemed like you were trying to expand outside of that and become a general streaming platform led and afrpgornchoredn gaming you are doubling down on gaming and is the model really built around that and whoa you've seen out of fortnight over the past few weeks? >> we're continuing to double down on gaming i think in much the say way that amazon continued to double down on books you wouldn't say that amazon.com gave up on the whole books thing because they added dvds and

eventually everything. i think in the same way you wouldn't say twitch is giving up on gaming or actually doing anything other than doubling down as hard as we can on gaming even though we are adding add jay se adjacent content we had a lucha libre stream. watch tlag watching that is pretty cool. >> beyond gaming, what is next you did a deal with the nba to bring minor league basketball games to the platform. and what is interesting about this, it was a traditional broadcast of a supplemented by stream basically, users could choose the way in which they wanted to watch the games. is there any plan to expand that perhaps the minor league games or beyond the nab snab. >> it's gone really well our streamers love -- we call it co-streaming, ability for them to take licenses pete of content like the nba g league and bring their own spin to announcing over it. and we found that works great in

gaming for e-sports and great outside of gaming too. we're excited to do more of it i can't comment on future content tomming cou content coming to the platform we're going to keep doing the deals. >> for those that are not big in the gaming world, can you explain how this platform might evolve into more of the sports whether it's the g league or others or beyond sports? >> what twitch has really built, if you look at it from the technology point of view, is the ability to have anyone on earth big or small start streaming and reach an ash trarly large number of people with large interactive video. and that works amazing in video games because there's a whole community of people that want to do that we really don't see any reason why that can't work outside of video games as well in fact, we've started to see some real success there. we're going to keep, you know, obviously working with game companies and trying to make

twitch a great place to stream video games live but we're really excited to go work with sports, work with aname and anyone who wants to reach a live audience which is one of the most exciting ways to reach an audience. >> emmitt, now on to the phenomenon of ninja. tyler blevins, the most popular streamer on your platform right now. i hope you can talk a little bit about what makes him so special. why people are following him and the impact on the platform but first, he's got a question for you. it's a good question where do you see twitch in terms of how it supports streeamers like him, the size, the growth you want to see in 2020, about a year and a half from now >> i think there's two things we're really focused on doing better for streamers every year. the first is figuring out new and better ways to help them get an audience. and trying to improve our

ability to connect new viewers with great streamers we're going to keep doing that and keep trying to figure out how we help streamers like tyler collect and grow an audience and connect with them. and then the second thing we're focused on, of course, is helping them earn more money figuring out ways like twitch prime that we can create win-win situations where we're helping them earn a living our company mission, actually, is to help creators earn a living on twitch and so that's really important to us. and i think the biggest thing we're doing over the next two years to do both of those things may actually be extensions we've been talking about this a lot. it's the gaming developer conference in san african thfras weekend. extensions are an app store for twitch and lets developers around the world bring new functionality to twitch. imagine integrations that connect directly to the game you're being watched and so i think that's still very early days on extensions but just like the app store was

incredibly important for mobile, i think the extension store on twitch is going to be incredibly important for live streaming. >> what makes tyler blevins worth half a million dollars a month? break that down for us it's beyond just skilled game play there are a lot of people good at playing games but you're putting a lot of muscle of marketing spend into growing your platform with the help hf streamers like ninja what makes him worth it? >> it's really interesting when you look at who super popular on twitch, it isn't always the very best gamers. in fact, it's usually not. it's people who have great personalities, who are funny, who are interesting and dynamic. and i think most of all who make -- can make you feel like you're right there with them in the room and that's a special skill it's a rare talent its something that i think tyler has. and i think that we really try

to build a community on twitch i think our streamers who are successful are the ones that build a community and really connect with people. >> and emmett, last question it comes from ninja himself. the gamers who are watching arel get it kappa or pogchamp? >> very difficult question for me it has to be pogchamp i'm always looking for that pogchamp moment. >> i don't even understand the question for me pogchamp is used to express shock or disbelief >> i thought pogs are those round disks we used to play it >> they are, kelly >> emmett, it's fascinating how many streams you guys are getting and the phenomenon of

foreclosure, fork, it look me a while to get the hang of driving that >> thank you, guys we're approaching more information from the white house on these tariffs against china you can see some nervousness there being expressed across all eresmarkets, all the major avag down, nasdaq down 136 "squawk alley" will be right back et was up nearly twice as much. that's a tough pill to swallow. exactly. so i started trading. but with everything out there, how do you know what to buy? well, i think my friend victor has just the thing for you. check this out, td ameritrade makes it easier to find the investments that might be right for you. like our etf comparison tool it lets you see how etfs measure up to one another. analyst ratings and past performance... nice. td ameritrade also offers access to coaches and a full education curriculum to help you improve your skills. that is cool. and if you still have any questions you can always chat with us on facebook or call our experienced service team, 24/7.

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selloff started this morning premarket. yesterday things kind of looked fine after the fed decision. but we've picked up a lot of selling pressure plenty of people are cashing, guys, citing tariffs and the decisions about china. we know the u.s. may target certain industries for protectionism. >> when you look at the big industrials, they have a lot to lose, if there is some kind of trade war. we had someone from ibm earlier this week. the problem is there's fewer and fewer free trade voices in this administration >> it's been a rough slog for the nasdaq, facebook helped to drag it all down lower again one of the most-owned and most-loved parts of the market >> between tariffs, facebook, headlines coming out of

washington, pick your poison as far as reasons for major indices to be down >> people might come in here and say, this is indiscriminate, overly broad we hope to have much more information at least on the tariff front in a lfha hour. >> "squawk alley" will be right back stay with us

that i was major breach of trust and i'm really sorry that this happened. we have a basic responsibility to protect people's data and if we can't do that, then we don't deserve to have the opportunity to serve people. so our responsibility now is to make sure that this doesn't happen again actually i'm not sure we shouldn't be regulated in general technology is an increasingly important trend in the world. and i actually think the question is more what is the right regulation rather than yes or no, should it be regulated. >> what's the right regulation >> well, there are some basic things that i think there are some big intellectual debates on if you look at how much regulation there is around advertising on tv and print,

it's just not clear why there should be less on the internet >> so now we've heard from mark zuckerberg we're trying to parse exactly what we heard. he's sorry he feels bad there should be some regulation, targeted but the substance, we're going to plan to get more from sheryl sandberg, the number two, the facebook chief operating officer, she'll be with our julia boorstin on "closing bell" at 4:00. >> that should be a great show coming up. i won't claim credit for julia's conversation with her, but i thought it was interesting that mark talked about the honest ads act, some people in silicon valley think it will weaken protections by forcing them to disclose speech. >> it feels like a watershed moment, not just for facebook but the implications across the

industry >> we don't hold our breath waiting for congress to get things done. i read some of that into what mark zuckerberg is saying. he's got to do something about this first >> he's going to have to, for the sake of advertising dollars. >> many while the dow down 473 points at this hour. >> ouch. >> that's it for "squawk alley." "halftime report" is starting up all right, guys, thanks so much welcome to "the halftime report," i'm scott wapner. we begin with developments on two major stories this hour. stocks down sharply as the president is set to announce new tariffs against china at this hour you can see the dow jones industrial average down by nearly 500 points, a loss of nearly 2%. big selling remaining in tech today as well, nasdaq down 2%, a loss o