i'm joumanna bercetche >> i'm karen tso semiconductor stocks are leading declines after the nasdaq sells off facebook's declines take its losses almost 20% since the data scandal broke as mark zuckerberg reportedly plans to testify in the u.s. but not in the uk we'll hear from mp damian collins at 10:30 cet.

oil prices under pressure after a surprise rise in u.s. inventories, despite word from saudi's crown prince that opec and russia are working on a long-term output cap. and an unofficial surprise beijing confirms that kim jo jong-un made a denuclearization pledge on a visit to china with president xi jinping good morning, everyone let's check in on markets. we did have one of the ugliest sessions in the u.s. actually in just over a month since the february shakeout that we saw that has continued into asia overnight for some of the major indices there what we're seeing in europe is one of big declines already. we have the ftse 100 down 1%

xetra dax down 1.4%, and cac 40 similar drops. let's look at some of these sectors and see where the leadership or the leadership to the down side is coming from this is pretty much the inverse picture of what we had yesterday. yesterday was a day where everything was bouncing up all of the sectors were in the green. today is the inverse the only sector trading up is the defensive sector to the down side, technology basket is down 2.6%. that's almost as bad as what we saw in the u.s. yesterday where tech was down almost 4%. you see as well the cyclical sectors, basic resources, autos down 2% as well. so let's switch and talk about what's been happening specifically in the european tech sector. you can see some of the blue chip names are talking about the semiconductors we're talking about dialog

semicon the chipmaker for apple, that stock down almost 10% down 9% already in trading the picture for semiconductors and the broad composite sector in europe is not looking pretty. >> let me take you through the asian market you have seen the impact in this part of the world. in particular hong kong, one of the markets down the most. down more than 2%. stocks in asia turning into the red for the week we have a market picking up on concerns around a trade war. china talking about retaliatory action against the u.s. trade tariffs. 60 billion that was tabled from the americans late last week so is this just negotiating tactics from the chinese or something deep their suggests a trade war? that's the reaction you're seeing tech stocks a huge component to the down side. let's look at the u.s. markets you can see the impact on the nasdaq versus the other markets. down much deeper into the red.

almost 3% coming off that market for the dow back into correction territory with this fall of 344 points investors eyeing the trade deal and what's happening in the background with tech and more regulation, more compliance costs coming into the mix. let's get into the selloff for the tech sector. some of the big names, the sector down 3% deeper falls in specific names tesla also caught up in some of the fears around autonomous vehicles after the uber crash the other week that stock down %. twitter caught up in the story with facebook. now down 12% amid fears of what data companies will have to do with regulations u.s. futures, watching these closely. you can see still in the red suggesting another day of pain for investors. question is what do you do with this selloff >> i think what's interesting is how broad based it is.

looking at that. it's not all about facebook. yesterday's price action -- facebook is down 5%, then the other big names down as much as 10%. twitter down 2%. tesla down 8%. for me this speaks to a positioning washout because of the extent of the flows we saw going into the tech sector since the beginning of the year. some of those positions have to be trimmed >> i think you're right on the positioning, but don't forget tech and trade caught up together because there's a concern there plight be a form of tech lash around some sectors. when yyou talk about autonomous vehicles, building up that sector is integral to what asian markets are doing. there was that challenge after the crash by uber last week. more broadly we're looking at questions again like we were raising in february, are we late cycle on this nine we're bu-yeal run?

too should investors take stock of the broader economy one concern raised is once you had tax reform it would mean greater capex spending which could extend out the economic cycle. more recent commentary is saying the effects of the tax reform are overblown and capex decisions are delayed because of uncertainty around a trade war do we have a market reversing because of the economic signals? is that something investors should be concerned about? >> looking for direction in any one of those sectors one other thing, looking at volumes specifically, the composite volume of shares traded yesterday was still below the 50-day average yesterday in total, 6.1 billion shares were traded the power shares gqq traded 76.2 million shares, above the 30-day average of 46 million shares so a lot of the turnover, the position trimming is going on in that tech space.

again, going back to what you were saying, many people were hoping to get leadership out of the technology sector. and with everything going on, you have the tesla that is an idiosyncratic story aligned with regulatory fears and trade fears, and you're seeing a shakeout of positioning. >> i've covered a lot of internet of things, autonomous vehicles, the picture is uncertain how any of this plays out and who it benefits the most a lot of investors bought on these big topics what you're seeing now is rationality kicking in do we understand this part of the market and do we understand what regulators will do? it's just a bit of fatigue setting in investors realizing some valuations are not justified until there is a clearer picture. >> which is interesting that nvidia is one of the stocks hit the most yesterday, down % almost let's talk about facebook a bit. the ceo, mark zuckerberg, plans

to testify before the u.s. congress he is coming under increasing pressure from lawmakers to explain how data firm cambridge analytica harvested 50 million users profiles >> a number of reports today saying mark zuckerberg expects to have to testify in front of congress in the coming weeks this comes after no less than three committees asked for his testimony. facebook would not confirm that, they just said they received the invites and are talking to legislators. one report saying he will appear on april 12th before the house energy and commerce committee. a spokesperson for that committee issuing a statement that says reports of mr. zuckerberg's confirmed attendance are incorrect the committee is continuing to work with facebook to determine a day and time for mr. zuckerberg to testify. there's still a lot of questions.

one thing becoming clear, it's getting more difficult for zuckerberg to avoid appearing before lawmakers himself last week he did say he would do so if he was the right person. many government officials are saying he is, in fact, the right person, not one of his deputies or another representative. a bipartisan group of 37 states attorneys generals are asking for explanations on the data practices. a letter says facebook needs to answer our questions so we can know if the company is upholding its end of the bargain with customers. >> damian collins the head of a parliamentary inquiry into fake news says zuckerberg's decision to not appear before mps was astonishing. he said it was urgent for the facebook found tore testimoer tn person we will be hearing from damian collins himself at 10:30 cet stay tuned for that. just a quick note, employ boy

talking about inappropriate behavior around facebook, and the lads magazine says the miss management use of data has solidified its decision to suspend activity on this stage so the high road taken by playboy. >> interesting you are hearing more firms not wanting to work with facebook. bringing in arjun to the conversation we had the selloff that we were talking about in the nasdaq. the thing that struck me in yesterday's selloff, it was so broad based. it wasn't specific to facebook facebook was one of the outperforming stocks in the down trade yesterday. what is your take? >> there's a number of factors at play. we saw the massive tech run of last year, given the size of the run-ups, often these pull backs can be quite extreme at the same time there's a sense of tech lash that's come into

play backlash against big technology companies. you saw twitter down heavily and alphabet as well these companies rely heavily on data any increased regulation in this space, anything that could affect the user numbers, advertising revenues that these companies can garner, that's a real concern there's a number of factors at play here as well. one of the other things i noticed, this year there has been more focus on individual names. last year you saw nearly every big tech stock rally so far this year to date amazon is up around 26% netflix over 50% apple is flat and alphabet down 14%. so there's question as to what companies in this environment will do well >> we are seeing the risk of teething issues. first it was ub wer with bad behavior and eventually a ceo

change now with facebook the priority to let developers have access to the data to see what they can do with it and what the capabilities were, rather than protecting crucial information, value to the organization. they didn't have their focus correctly tuned to what was important. we are seeing these exposes now of those problems of growth strategies >> that's right. there's almost a sense that the regulators are always going to be behind on this issue and have been for a number of years now it's time for them to play catch up we still have to remember that, a lot of these businesses are fairly young in the context of big global economies that exist. these business models around data and advertising online are still developing, still fairly crude some of the techniques used to advertise online so these business models are a reckoning. they're saying we let these companies get away with all sorts of data practices that

look suspicious. we need to start looking closer at this and tightening that up that's what you're seeing here >> i want to ask about netflix we had the hot board up of all of these stocks performing year to date. netflix up 50% yesterday down 6% or so. is it a case of throwing the baby out with the bathtub here netflix has a different business model. it's a streaming company it should not necessarily be one of the names that's being thrown out of the basket due to the potential of more regulatory oversight. >> there is that sense at the same time netflix relies heavily on user data what users are watching, when they're watching and how much content they're watching in that sense they're very much a data company there is a season the reason why you have seen netflix outperform some other names is more about the fact it's continued to show strong user growth globally and invest in the original content for the long-term. >> very good point arjun, thanks for joining us on

"street signs. we'll see more of you later. joining us as well is mike gallagher, the head of markets research at continuum economics. good morning to you. >> good morning. talking about the moves we had yesterday. do you think -- some people are saying perhaps this is the beginning of the bear market >> i don't think so. i think if you look at bear markets, most bear markets tend to be triggered by a major deterioration in the economics or a major increase in bond yields those are the two things we're looking at i think if you look at that, some of the data in the u.s. has been a little bit sort of softer, but it's still consistent with broad growth we still have to get the tax cuts and the spending increases kicking in so growth looks good for the u.s. this year if you look at some survey indicators outside of the u.s., particularly in emerging markets, we've seen an

acceleration in the last couple of months. global growth as a whole looks reasonable >> it doesn't have to be a bear market to be a difficult year for investors after what we had last year from record high to record high. if you go back to what morgan stanley said at the time, you could see stocks struggle from here after the first quarter izing equities, rising inflation. high commodity prices. high volatility. a pattern that could cause stocks to stumble. the only wildcard is around inflation. you have everything else coming through. >> our end of-year forecasts for the s&p 500 is 2650. we are looking for a difficult year that's certainly the case. it's a timing sort of question the fed have not signaled four rate hikes yet it will take until june before they do that

inflation numbers while they're creeping up, they're creeping up slowly yes, we'll have more volatility than we did in the past. that's because the liquidity from central banks are changing. the market is at a high evaluation we can see corrections but i don't think we're in an environment to see a bear market >> have we learned how to trade this environment we had two market events this week and also in february. money in each of these situations has come out of high position trades. this time it was tech then financials do we play a cautious approach to those particular areas of the market >> i think one thing that is worth sort of mentioning is that if you look at bond yields, bond yields are actually coming down in contrast to what happened in january and february, which they were the catalyst for the correction when you have seen bond yields come down in the period that's tended to stabilize the market we suspect if you look at the

next month or so, yes, there will be more volatility. we can see some further down side but the bond market will probably end up stabilizing the equity market. >> ultimately financial conditions in the u.s. are still very, very loose despite the fed embarking on tightening. >> we had a guest earlier on the show he was saying that in the past year alone google and apple grew the top line by $40 billion. so the fundamental story is still very much there. would you use this selloff in the tech sector to think about getting long fwaagain? >> we've had a good run. i think the market will really want to pause a bit for thought. some of the plays that worked last year, which are straight line plays, focusing on those with good revenue and earnings growth are no longer applicable. you need to take account of volatility and yields. i think we'll see not a quick

bounce back, but we're going to see sort of a pause and a very mixed market some things that karen mentioned will be prevalent throughout the year it will be a difficult year. >> mike, thanks for joining us mike gallagher from continuum economics. a long-term commitment saudi arabia's crown prince says opec and russia are considering an upward deal that could span two decades. we'll look at the market implications after the break stay tuned - i love my grandma. - anncr: as you grow older, your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide. - she outsmarts me every single time. - checkmate! you wanna play again? - anncr: prevagen. healthier brain. better life.

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chinese officials have confirmed that kim jong-un visited beijing in recent days and met xi jinping xinhua described it as an unofficial visit which marks kim's first foreign trip since taking power from his father chinese authorities say they have won a pledge to denuclearidenuclea denuclearize during the talks. the train departed tuesday under heavy security saudi arabia's crown prince,

mohamm mohammed bin salman says a 10 to 20-year agreement between the two nations would help stabilize control of crude exports he told reuters we have an agreement on the big picture but not on the detail. let's look at how oil reacted. didn't react a lot to that news because of the broader selloff in equity markets. wti down 1% on the session brent down 0.6%. just below that 70 dollar mark i'm happy to say that joining us on the set is colin smith, from penyer gordon. going back to this deal, 10 to 20-year agreement on oil sounds farfetched >> i think it's something that opec would like very much would be for russia to be more like a member of opec i think the agreement they struck that is with opec and non-opec members took them quite a long step towards that i think getting to a fully

fledged agreement in which russia becomes a de facto member of opec is still a bit of a push at the moment. >> also raises questions about future compliance. so far compliance with the agreement has been high, more than 100% if you look at it. going forward. do you expect compliance levels to hold in the next 12, 18 months >> the main reason opec compliance has been as good as it what is because venezuelan production is collapsing and saudi arabia has been compliant. the countries you would normally expect to cleheat don't have spr capaci capacity on the non-opec side, russia was half of the non-opec contributions. as long as russia is complying, there's a high level of compliance as a whole. >> why now why talk about such an agreement when prices are at elevated levels is this about the listing of saudi aramco

there's been all sorts of stories about whether the ipo will happen this year. if it does, there's question on whether the valuation sought by the saudi crown prince is achievable is this about trying to sure up the price as the asset goes to market >> i don't think they're trying to pump the price to bring saudi aramco at the best ipo, though it certainly would help. i think the saudi aramco ipo is under a bit of pressure. when the crown prince himself suggests the timetable might slip to next year. you know something is not quite right. >> i saw commentary around what this could do if they got a 10, 20-year agreement. if you have a powerful producer you don't get the fluctuations on the price, high to low. but is it possible to flatten out the curve a bit on oil prices and if that is possible what does that do to the hedge

funds that have been trading the market in recent years >> i think we've seen the hedge funds struggle to make money on oil for a variety of reasons i don't think a broader agreement would take away volatility from oil. it's a cyclical business, we see that if the price is too high, you will get a deman responsd respoe the other side is u.s. production what is your outlook for the oil complex? we talked about compliance, that's important when it comes to russia and saudi arabia but the key determining factor is how much shale output the u.s. will produce over the next 6 to 12 months that will have an impact on the markets. i'm curious on your views. >> at the moment the iea is forecasting growth of 10.7 -- sorry, average 10.7 million barrels a day this year.

growth so far is likely to be at least 10.8 or maybe more than that depending on how the numbers come through the balance of the year. i think that's a story that's not gone away. at the moment markets are balanced with where opec production is. the other factor that's come in much more recently in terms of driving prices is the raising of temperature over iran. >> oil has not been dented by this trade war potential other assets have come off, if there's a slower global economy surely oil gets impacted at some point. why is oil immune? >> i think the respect to oil, the whole iran thing over the last couple of weeks has made a difference there's a more realistic process that the u.s. will withdraw from the iran treaty. >> colin, thank you very much for joining us you have some flashes?

>> quickly, flashes out of the iraqi minister saying oil prices are improving and iran will nirl not deviate from any future plans. coming up, damian collins. ♪

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welcome to "street signs" if you are just joining us. i'm karen tso. >> i'm joumanna bercetche. these are the headlines. >> the tech lash trade hits europe with semiconductor stocks leading declines after the nasdaq sells off facebook's declines take its losses almost 20% since the data scandal broke as mark zuckerberg reportedly plans to testify in the u.s. but not in the uk we'll hear from mp damian collins in a few moments oil prices under pressure after a surprise rise in u.s. inventories, despite word from saudi's crown prince that opec and russia are working on a long-term output cap. pact and beijing confirms that

kim jong u.n. made a denuclearization pledge to china on a visit with xi jinping everyone just checking in on markets again. as we said, the move in u.s. equities did continue into asia overnight with some of the main asian indices trading down 1%. we're seeing a similar theme in europe we have come back a bit from where we were about a half hour ago. about 0.2% higher as far as the ftse and xetra dax are concerned. still broadly speaking all of these indices are down 1%. let's talk about the sectors and what's going on there. i don't think it's a big surprise that the main underperforming sector in europe is the technology sector these are the specific names just talking about some of them

specifically asml down about 5% these are semiconductor chips, chips that work with some of the big companies in the u.s., including apple. broadly speaking these names are really coming under pressure dialog semicon down almost 11% a heavy day as far as the tech sector is concerned. switching to what's actually happened in the u.s. session overnight. nasdaq was down the most, down almost 3% in yesterday's trading. just a little bit of stats for you. this was one of the ugliest sessions since february after we had that big volatility bout dow and nasdaq are on pace for the worst month since january of 2016 it has been quite an ugly day as far as trading was concerned let's talk about some specific

names that have been driving the under-performance in the tech shakeup. one thing we were talking about earlier is that it was not all about facebook facebook started this selloff yesterday, trading down almost 5% you can see all of the names here in this tech basket were down dramatically. tesla down 8% after saying they would ban testing on some autonomous vehicles. nvidia the artificial intelligence economy that manufacturers some of the technology that goes into these cars, almost down 8% twitter down 12% on news that they would be shorted. amazon a big name in the tech sector down 4% it has been broad-based. let's look at u.s. futures and see how things will look up in a couple hours time.

just waiting for that to come up essentially it looks like it will be a weaker start for u.s. equities you can see that dow is seen opening up about 40 points lower. s&p down about 5 points. karen? >> facebook ceo mark zuckerberg is reportedly going to testify in front of congress he's coming under pressure to explain how cambridge analytica harvested 50 million users profiles dami damian collins said his decision not to appear before british mps is astonishing damian collins joins us now. welcome to the program thank you for joining us

if you look at stats in recent years, more than half of the uk population logging on to facebook it's pertinent for there to be answers served up. how do you proceed from here if zuckerberg will not appear will you take the testimony of the two deputies offered to you? >> yes so we said we would be happy for chris cox, the chief product officer of facebook to give evidence he's a far more senior figure than who has given testimony in front of parliament before but these issues are so serious, concerns not just the way the products work, but the culture of the company, the most appropriate person is the person who is the beating heart of the company, it's founder mark zuckerberg we will be writing to him again today to confirm is he declining to attend or would he be prepared to come in the company's response it wasn't clear if he was declining to attend or merely suggesting

someone else in his place. >> you note the seriousness of the situation but you didn't get much support yesterday from theresa may about mark zuckerberg's appearance, because facebook is a company that has pledged to invest in the uk in the height of all the brexit uncertainty, bringing 800 jobs to the uk. is digital and data a sacrifice that the government is willing to make to try to secure business with brexit unfolding >> she was clear yesterday that the company would have to cooperate with the inquiry they need to make sure they can fully answer the questions we put to them. this is a serious matter the prime minister was clear about that yesterday today the secretary of state for digital media, matt hancock, also said he thinks it would be appropriate for mark zuckerberg to come. the government has given their full backing to the inquiry so far. so there's clear support for mark zuckerberg appearing and

for facebook doing more to fully cooperate and answer the questions we put to them many issues we've been discussing about cambridge analytica, about data breaches, use of personal data, what you can do to recover data if it's misused, we put all those questions to facebook in our hearing last month we didn't get adequate or clear answers then we now know more about how serious these issues are >> i would like to ask about the ramifications. the ftc in the u.s. said the ramifications could be as much as $40,000 per violation we're talking about 50 million users here that adds up to about 2 trillion dollars. on your part, if facebook are found to have breached data security rules what are the ramifications in the uk? >> under the new data protection bill currently going through parliament that would give the information commission power to levee a charge of 4% fine against global revenues.

so for a company like facebook, that's a large fine. but we're also looking at a further change to the law which i would certainly support, i know others in parliament would as well, not just a fine but to give the information commissioner the power to go into big tech companies and take the data they need to complete their investigations that would for the first time mean there would be some tint that has the power to go behind the curtain and check that tech companies are complying with data protection law. so far we've largely been reliant on them correctly responding to information notices and telling authorities what they need to know the authorities have not had the power to see for themselves that they're actually complying fully. that reform is important we're moving into a new era in the uk of the potential for much larger fines to be levied. >> it's arjun here what do you make of facebook's response so far? they took a while to bring a

senior executive to the front line they have announced changes to the way that they will allow more users to see what data is being stored how that data is being used and what apps have access to the data do you think their response so far has been enough? >> to be honest the changes announced since this story broke last week and mark zuckerberg discussed last week in his interview, i think that's probably stuff they were working on any way a lot of it is stuff they would have needed to have done to be compliant with the new european data protection laws, gdpr i think the company was very reluctant to engage in proper questions and answers during our inquiry, certainly when we started it towards the end of last year. i think they have gotten more cooperative because they can see these are really big issues for facebook users there is a problem now in the

company with as a company that l keep data safe so they have to step up to the plate and be more transparent and open with these inquiries. i discussed this with people working in the senate and also senators mark warren and richard burr, they shared our frustrations that it's been difficult to bring the companies to the table but they're looking to cooperate now in a way they did not before >> has this facebook episode made you suspicious of other tech firms that are using data as a core to their business models as well >> yeah. obviously these issues are not just questions for facebook, though the spotlight has fallen on them. it's about how all companies gather and use data. there are two things that consumers are focused on in the last ten days or so. firstly just how much data is being gathered about them. the fact that you have a facebook app on your smartphone, that gathers not just data about

facebook but logs your calls, and gathers data from other things you do as well. i don't think people understood how much data was being taken. with the data security breach, the concern is that data is not necessarily safe people might have understood that apps used, services used like twitter and facebook gather information to improve the services they offer to you not that data can be taken from them by a third party an given to a fourth party to be used in a way you never consented for. i think these are broader issues for the tech sector in the way data is collected from users and then used on other products. >> let's talk about the impact on democracy there are all sorts of concerns that tech companies were using brexit in terms of driving decisions in one way are you concerned that the referendum that brexit was compromised by technology?

>> that is a concern it's something being investigated by the information commissioner and the electoral commission in terms of whether any election laws were broken. that's important there's a bigger debate about the way in which data is used in elections. some people say data has always been used but we're in a different world now wheregeted s from organizations where it's not clear who the advertiser is. they could be through social media made to believe that opinions are widely shared by all the people that use the service because they only see largely what they and their friends interact with. this is a different form of campaigning. it's not just making sure the data laws and election laws are adhered to, but also a greater degree of transparency than so far. it's much clearer to people who is sending them that message so they can be a better judge on

whether that's a message they can trust. >> the final one for me. given the concern about the amount of data collected by many of these big firms will you ask any other large technology companies to speak to your committee >> we've already spoken with google and youtube and twitter as part of our inquiry we'll be looking to hold further evidence sessions after the easter recess. and we have not at the moment decided to call other tech companies but remay wewe may weo >> thank you very much for joining "street signs" today that was damian collins discussing the ramifications of facebook and uk parliamentary testimony. shares of twitter fell more than 12% after a short call was made on the stock. in a tweet the short seller made a bearish call on twitter just two months after he had gone public with an unusual bullish bet. speaking to cnbc, he said the change came as a result of growing scrutiny around social

media. >> when we saw congress requesting facebook, google and twitter, you say who is vulnerable now twitter is trading with four-year short interest and a low that we have not seen in years. so stock prices are vulnerable, business models are vulnerable because they sell a share amount of data, data licensing business and while it may be 15% of revenues, it goes between 80% to 100% gross margins so it's a high percentage of their earnings >> shares in tesla traded sharply lower after federal investigators launched a probe into the fatal crash of a tesla model x in california. moody's downgraded the credit rating saying the company faces a short fall in the model 3 production rate and a tight financial situation.

coming up on the show, apple zeros in on the education market we'll look into its new strategy when we come back. stay tuned but i'm not standing still... and with godaddy, i've made my ideas real. ♪ ♪ i made my own way, now it's time to make yours. ♪ ♪ everything is working, working, just like it should ♪

amazon is reportedly in talks with casino over its brazilian electronics chain. the two are said to be negotiating a deal that would have amazon partner with or buy the unit it features brazil's third largest e-commerce operation and more than 900 stores in the country. the talks come as the two companies struck an agreement to show products through amazon yesterday. speaking to cnbc earlier, regis shultz rejected suggestions that the company's deal with amazon was an admission that they were unable to create an efficient e-commerce offering on their own. >> it's sharing experiences, benefiting from amazon experience on e-commerce and sharing retail so i think the future lies in

partnership and the ability to leverage and to -- in order to invent the commerce of the future. nestle, unilever and kraft heinz are expected to bid for gsk's horlicks unit. all three companies have declined to comment. and apple is zeroing in on the classroom as the company focuses on reasserting its dominance in u.s. schools. it's unveiled a new ipad and classroom software as it fights off the challenges posed by cheaper laptops. the new move has come with the same old price tag with the ipad costing $299 around $100 more than the google and microsoft models i'm happy to say josh lipton has the details. >> reporter: the global education tech market generated revenues last year of nearly $1

billion. tim cook would enjoy a bigger piece of that market, so today he was on stage here at lane tech high school in chicago talking about his company's commitment to the also a room. >> at apple we care deeply about education, because we love kids. and we love teachers we love creativity and curiosity. and we know that our products can help bring out the creative genius in every kid. >> apple set up demo rooms here to show off the product. the new ipad would cost schools $299 the overall tablet market has been under pressure, though apple grew 3% last year and controls about a quarter of that market apple also introduced a new app today called schoolwork which helps teachers manage ipads in the classroom. they have plenty of competition.

devices running google's operating systems control nearly 60% of the u.s. education market according to idc also happy to say joining us on the set is neil volkan from ox faford business school talking about the apple ipad, we were just saying there's a bit of criticism leveled tat givat e the price point, $299. do you think the future of education is one that's more reliant on this type of technology >> it's time for disruption in education. i think certain things, if i talk about my industry, about university education, i don't think there will be a replacement for an undergraduate degree in oxford or the experience of an mba in oxford or other leading business schools. but there is around executive

education, we see a tremendous amount of change we're keen on that in oxford and we're working with our partners to create programs, especially around the more fast changing areas like fintech and blockchain >> education has become expensive in recent years. you have a device that some thought might go on the marketplace for $259, but there's no climb down by apple on the price if you have to replace these devices every few years, which we have to do at home, that starts to get very expensive for institutions >> yes, i think that is -- i was surprised like you to see the price point that apple came up with it's different for us in universities because our students are a bit older and wealthier. that's not necessarily the issue for them >> wealthier with what student loans? going back to university and paying for this yourself

you don't want the price point to start rising because of everything that goes into education. >> i was talking about our executive education students who are in their 40s, already have a job, so for them the technology is not necessarily the most expensive part of the experience i think the key is really what kind of experience can you give? can you use the technology to give students, to help them engage, to help them genuinely learn in a more individualistic way? in a way you couldn't do just in the class? i think if you got that, i think then this is worth investing in. >> what you're seeing here is, look, this will not move the needle when it comes to apple's earnings education is estimated to make up 10% of the company's revenues in total ipads have been doing well >> but this is an ecosystem, isn't it you sell the ipads, then those same people, the educators could buy another device from the ecosystem.

>> and the key thing here is this education technology development. apple spoke about augmented reality over the past year and a half this is where they see augmented reality having a killer use case in the classroom i think that's what you're seeing here. when they put in a very key ai chip that they developed, some of the latest technology into the latest ipads that's what they're focusing on saying if we can push apple products into the classroom we can push ai technology too >> it's also about equipping people with the right technology to function in a tech-heavy world. the world we exist in today. i know another focus of yours has been on training people when it comes to algorithmic training talk me through some ramifications of that. my understanding is algo trading is mostly done by computers. >> the program we're about to launch is focused on people working in the industry who are

not algorithmic trading people, but they heard about it, maybe they're worried about it they're thinking how will that affect my job, maybe positively they think i should know more about it shy be allocating funds to this. the cause is about educating them and that particular important part of the industry beginning with finance so they should be comfortable with this program. it's in the language that most of the people who will take this will know. then moving into technology and trying to explain how technology -- how algorithmic trading works and how -- where does it work well. where does it not work well. what is the language people use. we hope they'll feel more comfortable engaging with this >> do you think this conversation is different than the one we would have had five years ago about how you're educating students >> i think a lot of things have changed. financed used to be independent of technology, a bit above it.

clearly now this has changed with the finteches, with ail go rhythmic trading the impact on this sector is enormous >> thank you for joining us. thank you, arjun, too. the market closely watching what has been another weak session potentially unfolding. that's it for today's show >> "worldwide exchange" is coming up next

market alert after yesterday's big late-day slides, stocks looking weak again. the latest trades and why sentiment keeps whipping around. a big break through. china says north korea has agreed to denuclearize the korean peninsula. and lulu pops,twitter drops, and investors slam the brakes on tesla. a full roundup of stocks to watch on this wednesday, march 28, 2018 "worldwide exchange" begins right