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good morning, it is 8:00 a.m. in seattle, 11:00 a.m. on wall street "squawk alley" is live ♪ ♪ good wednesday morning welcome to "squawk alley." here at the new york stock exchange watching the markets closely going back and forth between gains and losses, holding that 2600 level, john. >> and faang stocks coming off the worst day ever president trump is planning to quote go after amazon and on top

of that, goldman releasing a note, slashing iphone sales estimates. bring in scott devit good morning >> good morning, jon >> i am going to ask, i have asked it before. is faang broken, year to date, facebook is down 13%, google, alphabet down 4%, amazon and netflix up 21 and 51%. they're going in different directions didn't used to be that way >> i think acronym investing is never a sound, fundamental long term approach. i think you have to look at individual companies versus letters and names. i do think now that that whom o. -- news on internet companies, stocks will be more important. >> how do you select in this environment. it is surprising, twitter is up 17% year to date, for example,

better than some of the names that have been getting a lot more attention than twitter. what are the fundamental drivers you're looking at in this environment? >> you know what, what we think and our approach in this as recent events are building has been to look at the differences in proximity that the companies have to consumers and the relationship that the companies have, led us to favor commerce companies over media companies, given what they use data for in terms of selling widgets versus media companies who use the data to monetize other things outside retail and digital goods we have been more focused on amazon, despite weakness today companies like ali baba in china, bookings holdings in the u.s. recently downgraded facebook and alphabet. separately downgraded netflix,

but purely on valuation. stock was up 70% >> good insight on the difference between the stocks. not all about acronyms thank you, scott >> thank you shares of facebook recovering after getting rocked over the latest data scandal mark zuckerberg preparing to testify to congress, something our guest called for a week ago. joining us from palo alto, roger, good to talk to you again about this increasingly important story. let's take your temperature now based on what we heard about potential appearances, new privacy tools, the delay of speaker and everything else. >> carl, i think the really important points here are that facebook is attempting to get around enormous amount of negative feedback but haven't addressed the problem. you know, the new portal

requires the user do work to find out a small subset of what the actual issues are they're having to face facebook has really got two problems one is there are a lot of land mine's yet to discover between 2010 and 2014 when they had this tool that allowed applications to harvest your entire friends list, there were probably tens of thousands of different apps that did that we heard about cambridge analytica. there's a lot more to go besides that we have seen the issue with android phones and downloading of met adata he has to solve old problems and a plan to protect the future how are you protecting users on facebook and google and other platforms from this going forward? i don't think we heard the first word about it. >> roger, i know you have been an investor in facebook as well.

in light of everything we are seeing coming to light and comments you're making that there could be more to come, are you selling? >> so i have turned over my facebook position to a third party manager that did sell some stock on the bad news last week. what i would tell you here is that i think that the issue is not with the business. i think the numbers of facebook are going to be fine, particularly in the near term, not user count, not usage, ad dollars will be fine where i have a problem is i think they're doing huge harm to their brand. as you saw with microsoft in the antitrust case in the '90s, you can still grow as a tech company and suffer massive te compression and it is terrible for the stock. the way zuckerberg and sandberg handled it is almost the worst possible way if you try to protect stock value. trying to hide the ball, deflect criticism is not going to work any more this is a much bigger problem

and it is fundamental for them they need to get on top of it and need to do a better job than they're doing so far. >> roger, to the earlier point, if metrics come in for the quarter anywhere near consensus or above, some people are going to see that as constructive, despite long term concerns. >> of course, no, no, carl, i am completely with you, not trying to forecast the stock month to month. i think that's a really, really hard thing to do i think the damage they're doing to the brand scares the crap out of me as an investor i look at this and go this is a trust based business, and if people believe their data is insecure, they're going to use it less. over time that's going to be a huge problem if investors focus on revenue and profit only, the next quarter will be fine if they look at usage, if they look at user count, i mean, i think usage is almost certainly down again this quarter. i think user count may be down next quarter in north america simply because you have a delete

facebook program, i don't think it is that successful, but they never had down users. >> roger, i want to ask, what can facebook say really, what can they do. the ball seems to be moving. now there are stories how facebook is too cozy with some shady companies looking to do online marketing, which have frankly been part of the online marketing ecosystem a long time. facebook didn't invent that, but if they were dealing with the cambridge analytica issue, people using data in ways that wasn't agreed upon, that's one thing. this is completely different what exactly do they have to fix here >> jon, i think this is a really huge problem because it goes at the fundamental business model in the advertising business you basically get all the data you can get about users and monetize it any way you can you know, right now we are having a day of reckoning, people are saying we used to think that was okay, now we're not sure it is okay, we're

probably concerned it should be very different and i think facebook is going to be under pressure to change the way the business model works and i don't see how that's good for the stock in anything other than the short term. i don't think this is easy to fix at all that's what scares me so much as an investor. >> roger, we're really focused on facebook, but we have seen the broader faang tech company sell off as all of this unfolded as well as other social media stocks like twitter. is investor fears that there's contagion here justified >> well, i would say that google has a problem. i think the android issue relative to facebook is not confined to facebook android phones and i talked about this in the past, they're materially less secure than iphones. it is just a philosophical difference the way google runs the platform and the way apple runs its platform and we're going to get more news about issues with android. if i'm google, if i'm facebook,

the most important thing to recognize is regulatory environment in europe is changing on the 25th of may. this global data protection regulation which is coming into play on may 25th is going to give consumers a lot more control of data, going to give them a lot more privacy protection if i were google and facebook, instead of fighting gdpr, i would embrace it globally because i think if you want to restore trust, you have to accept that some of your past business practices are deeply harmful to people and you have to change them, even if there's a cost to short term earnings, because in the long run the brand is more valuable than the penny of earnings from maintaining the old business practice. >> one last question, roger, beyond social, beyond facebook we've had concerns this week about autonomy, you've had uber, nvidia, tesla, what is happening

to sentiment around what's been the most dynamic parts of the markets and economy? >> carl, we have been talking about this for months, we're ten years into a bull market where the fundamentals of the economy remain excellent but where there are a lot of signs we should be more cautious. seems to me investors are making a prudent move here saying you know what, when you add this stuff up, it doesn't make sense to be as bullish as before as you pointed out, even with the massive correction, really only facebook is having a tough year i mean, it has been a really, really strong market and now we've sort of bounced back to even and we'll see what happens i mean, aren't you worried about trade? aren't you worried about the deficit? aren't you worried about inflation? i'm worried about all those things eventually investors have to factor that in not just day to day but in the long term view of

how to value stocks. >> you have been bringing our attention to things to be worried about. >> i was too early on this, right? but in my book, i am too old to earn it back, so i want to be more cautious. >> roger, see you soon, thanks >> thanks. sticking with facebook and data, i sat down with tim ryan, pwc's u.s. chairman. he weighed in on data regulation for the fort knox podcast. that's coming up end of the week listen to this, we talked about serious data regulation, when it is coming, how heavy it might be he compared it to financial regulation after the crisis. take a listen. >> we got dodd-frank almost overnight because of financial crisis that there was intense public scrutiny, intense interest because it effected society as a whole when i look at prior to dodd-frank, there were people looking at different ways to capitalize, to make sure

institutions are in the right businesses and not other businesses, and there were years of spade work there. and at the time seemed like it was moving fast, times it was moving slow, then you have an event and it comes together quickly. i think the same comes with data there are a lot of people studying data, looking at code of conduct, ethics, security, rights, et cetera, and that's been happening for years when you have an event, something that effects broad society, that's when you get big movement from oversite and government regulation. >> could be coming faster than people think i also talked to tim ryan about what's really behind the wave of protectionism, challenges it creates for companies trying to operate on a global basis. get it all on the podcast. >> i think it is amazing he is comparing regulating data to regulating the financials, given how strict those rules and governance has become. >> yeah. it is a question of how hard do

they come down and is this facebook issue enough to really cause that kind of reaction like we got after the financial crisis not clear whether this is quite enough but seem to be new headlines every day. >> great stuff another episode of your podcast. looking forward to it. still ahead. he sounded the alarms on social media way before hash tag delete facebook was even a thing. the so-called father of virtua reality will join us with his take on the data crisis. and before we head to break, a check on major averages. all three indexes having the worst month since january, '16 the dow up 15 points, s & p down five nasdaq down 60 more "squawk alley" straight ahead. that five stars, two thumbs up, 12-out-of-10, would recommend thing. because if you only want the best thing,

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it remains a volatile session for stocks dow up and down, edging closer to correction for the first time since early february good to see you both need to hear from you today. we have been through borrowing cost worries, trust in tech as we talked about, and the trade thing lingers. how do these fit, what's the key concern? >> i think you can add that we are at the end of the first quarter. there's window dressing going on we have the traditional jitters ahead of first quarter earnings reports. i feel like investors are

pulling petals off the daisy saying it is over, it is not over i don't think it is over just yet. i think we probably need to do a l little more penance. if we get back to break even before going deeper than 10.2% decline, i think we have at least one more of these kind of declines this year 40% of all declines 5% or more in one year were followed up by more than one later in that year >> do you think there are jitters ahead of q 1 others argue that the results will be the salve that makes us feel better. >> we normally get jitters before that comes out. we look for 10 of 11 sectors to post increases with energy, financial and tech being the strongest performers that could end up being the salve that heals the wound. >> david when you look at how

tech in particular is performing, some showed strong growth past couple quarters, facebook in particular and alphabet those were leading the market higher is it a concern that faang isn't biting on both sides any more? >> it's a concern for the broader market to the extent that technology has grown to be such a huge component. it is 25% of the s&p 500 if tech is under pressure which it will likely be while regulatory overhang gets sorted out, it is a dragon t on the mat good news for us, we have been underweighted, technology in favor of more value type sectors. hopefully maybe this is a catalyst that results in that rotation finally beginning to occur. but overall, i agree with sam. i think first quarter earnings will be good the economy remains very strong. there's a lot of stimulus still

in the pipeline. despite weakness in technology, i think the rest of the market should do okay. >> sam, there's focus on the bond market, investors piling into treasuries. what is that signaling >> i think it is signaling that investors say maybe we overreacted, pushed the yield up too quickly. the belief is we could see a steep ening yield curve as the economy starts to show benefits of tax cuts, et cetera, but we probably got a built ahead of ourselves. and i think investors are looking for a self fulfilling concern in that gee, maybe things are rolling over. that was the word i heard frequently this morning, are things rolling over and are we worried about potential recession, if not here in the u.s. then certainly overseas. >> raised prospect of whether we have seen the high for the year on the ten year. do you think we have

>> seeing the high on the ten year, no, our expectation is for an average closer to 2.9 or 2.95 by end of the year. >> david, one final point on that question? >> i think that's about right, although i think inflation will scare people in the next several months as we roll out some negative ratings from last year. i don't think it goes above 3% >> all right thanks so much good to see you both sam and david. when we come back, ceo of blackberry will join us fresh off the latest earnings report. and blackberry in the midst of a legal battle with facebook. we'll discuss all of that and so much more. stay with us ♪

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blackberry reporting better than expected earnings they're suing facebook over messaging patents.

john, great to see you >> great to see you too. >> stock is flat this morning, doubled in 4.5 years since you took over, slightly outperforming the s&p 500. are we at the point, generating cash where the tune up on the fixer upper is done, you're ready to take it on the road and see what it can do >> absolutely. absolutely i mean, we're done with the turnaround so to speak, and got a very good business here, shown a couple of good quarters. good fiscal '18. very happy with it, ready to tackle it. >> so i want to ask you about the blackberry technology group that includes qnx, which is used in cars, autonomous cars, next generation technology. the growth rate i believe on that unit is about 30% year over year, impressive i wonder how is the uber self

driving pause after the fatality in arizona likely to effect that business >> well, the unfortunate thing about the pause, two separate type of angle to this. very unfortunate, the accident situation and not all the facts are still known yet, but it drives the requirements or needs for good government policy setting, especially on the level of security requirement, and for long term this will, unfortunate, but this will hasten or move it further along for the autonomous vehicle to become reality so the other part of our business, huge part of our business you see today which you correctly pointed out, we grew about 30% year over year it was actually for the basis of conne connective cars. you and i chatted about it

before in addition to the infotainment system, it was those that turned results of the quarter we were very fortunate with that goal of 30% of the year. >> john, to dig in on that autonomous car technology, one of the things critics said on the heels of that fatal crash is that technology is not ready for the street yet, there are too many variables that need to be accounted for. what do you say in response? >> i think they might be right i think there's still a lot of technology needs to be put together a lot of people rushed to it you know, we are a technology provider, a safety provider. you know, i think this is collaboration effort of a lot of companies needing to come together you can't have one company go off and do their own stuff, and

unfortunately that kind of created incidents that are quite grave. but i go back to the same words. i have been talking to the united states government, speaking with the canadian government you need government mandate of security before we allow road tests to go on. >> john, i believe your licensing business is about $100 million annually, and if you're going to have patents, i guess you have to protect them a lot of people questioning the move to sue facebook over messaging. is there real technology underpinning patents a lot of stuff we see happening in messaging apps seems to be underlying patents, a lot of us think that's just how texting and messaging works. >> well, i really, jon, you know me a long time i like to pride myself being an

innovator, a patent creator. we are not just going after people for the sake of going after eople. you know, in this case it is a legal, on-going legal case, i really shouldn't comment on it i would say the following thing. i am looking for a business solution we have been on it a little while. the business solution never pan out, and then we would basically ask a thirdparty to decide i know this is not personal but i have my duties to protect the assets of the shareholders and monetize that. so i think it is just. i am not doing it just because adding innovation tax or something on that, i'm doing it because it really does belong to blackberry >> you have been running serious enterprise businesses for a

long people think they know how it will go. look at oracle versus google you never know john chen, thanks for joining us, ceo of blackberry. >> thank you thank you. when we come back, take a look at the nasdaq, having trouble as some of the high cap names dragging it down almost 90 points investors concerned about u.s. tariffs that could impact tech we talk to former ambassador nicholas burns about that. more "squawk alley" after this (siren wailing) (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

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good morning once again. i am sue herrera here's your cnbc news update a russian diplomat warns the world risks another cold war if the west continues its campaign against moscow making comments in the australian capital >> like our foreign ministry, it is boorish behavior of the west. police in northern italy arresting an italian man accused of spreading isis propaganda online the arrest came a day after an egyptian was arrested for preaching in the name of islam. and scientists discover the

largest human organ. it is apparently a network of tissues below the skin surface containing fluid filled structures it surrounds and protects digestive, respiratory and urinary systems. you're up to date. that's the news update back downtown to "squawk alley." >> sue, thank you very much. europe putting their market day to bed we find out soon if that has impact on us let's get to seema mody. >> the german dax under pressure as the tech sell off reached europe the sector closed down by around 2% all 27 constituents of the european tech sector trading in negative territory on the concern over tighter regulation out of europe. also concerns about apple's pipeline persisting, as that note came out of goldman, sachs that says it sees lower iphone sales in maran june quarter relative to wall street

expectations european apple supplier dialogue semiconductor down more than 11%. financial in focus with german bond yield below 0.5% first time since early january, putting pressure on broader european sector commerce bank, hsbc and other banks in the red in today's session. credit suisse coming back in late day trade and trade worries carry on and global resources i should point out, worst sector in europe for 2018 down about 8%. guys, sending it back to you >> thank you president trump signing a revised trade deal with south korea. the new deal ahead of negotiations over nafta. robert lighthizer said he was

optimistic >> at this point i am hopeful. i think we are making progress i think all three parties want to move forward. we have a short window because of elections and things beyond our control, but if there's a real effort made to close out and compromise and do some of the things we know we should do, you know, i'm optimistic we can get something done in principle in the next little bit >> joining us, ambassador nicholas burns, former ambassador to nato and greece and former undersecretary of state for political affairs. ambassador burns, thanks for joining us today. >> thank you >> all right so you just heard ambassador lighthizer and his comments. had this deal between the u.s. and south korea in the last 24 hours. a week ago, stocks sold off on fears of potential trade war with tariffs between the u.s. and china. this week we have officials coming out, taking what seems a

much less hawkish stance, saying this sisn't about war, it is about striking better deals for the u.s. is that what's happening here? >> it may be proof is in the pudding down the line interesting to hear him say on cnbc that he is relatively optimistic about nafta because the trump administration recently as two, three months ago, people thought these negotiations may not end successfully let's hope that does continue. the south korea deal is a beginning for president trump. he has been emphasizing bilateral trade deals, drawing the united states away from multi lateral approach of last many decades, and it is a first test we'll see what kind of impact it has on auto manufacturers. it should help in the short term, steel manufacturers, by limiting capping the amount of steel south korea can export into our market. there's a political reason as well as president trump thinks about meeting with kim jong-un at the end of may and reflecting

on what's just happened, this surprise visit by kim to beijing, south korea and united states could not afford to be in a trade fight with this big strategic event ahead of us. that's probably another rationale for what happened in the last 24 hours. >> i'm glad you brought up north korea, because the surprise visit to china, china came out with reports that kim jong-un pledged commitment to denuclearization and looking to meet with u.s. officials all that talk of fire and fury last year, did it work >> we'll see i do think president trump has been effective getting the chinese to do more, both by way of adhering to sanctions and putting chinese pressureon north korea. certainly the north koreans felt brun brun brunt of american and other sanctions. let's hope that's the case but kim jong-un is an elusive figure this is the very first trip he ever made outside of north korea

as the leader of north korea his very first meeting with a foreign leader which is extraordinary when you think about the fact he has been in power seven years. when kim says he's committed to denuclearization i take that with a grain of salt we heard that in the past in rhetoric, not backed up by action this will be a very difficult summit meeting for president trump. let hope that they put continued pressure on north korea in the run up to the trump, kim meeting. >> ambassador, want to dig deeper, get your take further on the trade agreement with south korea. which part of it is most significant? on one hand the market is technically opened up to u.s. car manufacturers, though we're not selling many autos into south korea as it is then on the other hand you've got a different threshold for steel exports to the u.s is that moving in the direction

of influencing the global market, addressing the china dumping issue that the trump administration talked so much about? >> i think you've asked the key question it was advantageous of the united states to usethreat of sanctions, announcement of steel tariffs, for instance, to get this better result from the south koreans. i think the president and lighthizer used that first one as leverage frankly. i think the test of the bilateral policy by president trump will be with the european union, with china, with japan, with the larger economies of the world that can match us weight for weight we had a very aggressive statement by president macron saying he was not, the eu would not negotiate with the united states through the barrel of a gun, through threats, through imposition of american tariffs that they wanted a broader discussion i think the strategy of trump may work with smaller countries.

not sure it works with china or the european union or some other weightier countries. >> ambassador burns, great to get your take. we'll leave it there thank you for joining us >> thank you now to chicago, apple ceo tim cook speaking now with swisher. josh has the headlines >> reporter: we're back at lane tech high school we were here yesterday for the apple education focused event. today we're back here because as you know, they're interviewing apple ceo tim cook i want to bring you quick headlines from the conversation. there's a lot of talk how ai and tech can impact the labor market cook saying we have to get comfortable, that education is lifelong, jobs will be cannibalizized ov cannibalized a system to train needs to be

put in place and needs to work many more jobs have been created than displaced, but we should not all be sitting around waiting for the government to do its work he says government and business should work together they're talking yesterday, we talked about on air how do you make sure that tech gets to as many kids as possible. cook introduced that ipad for schools, $299. cook saying we priced things as low as we can. software is free, cloud storage is free, we can prepare the curriculum, maybe prepare coding for free, notes it makes sense over a lifetime. it was interesting, too, ceo of chicago public schools is in there, and they asked her the same question, how you decide between apple and google and microsoft. there are differences certainly when it comes to cost. the ceo of chicago public schools noting she looks for

tools, what made most sense for students she noted there are more than 80,000 ipads already in the chicago public school system, so she knows desire and demand are there for the devices. back to you. >> josh, one line of questioning we are looking for is whether or not he comments on the life cycle after goldman coming out and establishing low consensus view on iphone sales. >> i saw that note, carl i also saw rbc taking down his estimates modestly we know the smart phone market is mature, people are holding on to smart phones longer i would be shocked if she didn't have a question or two for cook on that subject as well. we'll bring you those headlines when they cross. >> we'll keep our eyes peeled. thank you josh lip tton. when "squawk alley" comes back, we will talk about the dow up 52.

rick santelli, what are you watching >> watching ten year note magnetic personality thea does at mn? tune in after the break. so, my portfolio did pretty well last year. that's great. but the market 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.

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♪ i am scott walker. coming up, trading the faang route, and report the president may take aim at amazon that stock getting hammered. is the sector out of favor or taking a breather? and ceo of beo on rates,

markets, whether there are better values for your money overseas. a health care investor that used to work for carl icon what he has been buying lately, top of the hour, jon, see you in 15 >> thanks. back to chicago and the cme group, rick santelli has the santelli exchange. rick >> thanks, jon magnetic personality, everybody has the little magnets on the refrigerator, get them in a half inch, they stick on. if you take north and north and south and south and put magnets together, they repel that's the point of the magnetic personality to ten year note yield. it has been a thrash and go scenario, where magnetism of the drawing side is when you get a lot of frequency of certain prices, prioritized by closing prices, and repel is when you move outside high frequency ranges i want you to see a chart starting july of 2016 on ten year note yields the reason i picked july of

2016, you see that slightly sub 40-year-ol 40 year yield. now lelt's go to the board. here's the second leg of the double bottom under 140. exact number is 136, 137, you can see the reason we pick this is once you get a double bottom, treasury yields love double tops and double bottoms they seem to be great reversal patterns going back to the '70s. but if you look at the consolidation since the double bottom, they all result in up side breakouts except for this one. this one came at a high. what's significant is last year's high was 263. my guess is you want to know what's going to happen now, we're going to repel away from high frequency we closed at 22 sessions in a row, likely gravitate towards 263. we'll see how it looks when it

gets to the old consolidation range. carl, back to you. >> rick, see you in a bit. dow back to a one point ss more "squawk alley" straight ahead. you know what's awesome? gig-speed internet.

you know what's not awesome? when only certain people can get it. let's fix that. let's give this guy gig- really? and these kids, and these guys, him, ah. oh hello. that lady, these houses! yes, yes and yes. and don't forget about them. uh huh, sure. still yes! xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party. welcome back as regulators swarm facebook, the company announcing changes to its data and privacy tool settings our next guest says be a pioneer to lead facebook

jaron lanier and author of the book ten reasons to delete your social media accounts joining us >> how are you doing >> so you argue that facebook deleters are indispensable and should be celebrated why? >> well, right now almost think of facebook like our government, as this thing we have to use it sets policies, it he will its us how much privacy to have, who to connect with, how do-to-find out about things and it doesn't just do that by itself the only way it can make money is when it is paid would i somebody else to influence us. and then when we want to change anything, we kind of go to facebook and say oh, please, facebook, change things, make the life settings easier, you know and thing is that we have no standing with facebook we're not citizens of facebook we have no vote. it is not a democracy. and this process is not a way that we can design the future.

we can't rely on this single company to invent our digital future in such a big way so when people delete, it is not so much that they are effective protestors, they are inventing what life can be like without facebook for now they will discover other ways of finding news and meeting friends. and those pioneers are showing us what the space could be outside of facebook. they are an absolute necessary part of having a democratic future so i don't think everybody plausibly can quit facebook. i don't know if everybody should but those who do are serving a role for all of us it is extremely important to support them >> interesting the "journal" has a piece out sort of examining the process of going through the deletion of facebook and they talk about the moment where when you start to unwind your account, the repeated warnings, are you sure you want to do this, do you realize you'll be gone forever and they quote one person

saying, oh, maybe i'm making a mistake, maybe my life really will be over >> i have a confession to make i've never been on it. but one of my cats has been on it and she went through the same scare routine when she quit. you know, courage. you'll make it hey by the way, i'm not the chief scientist of microsoft it is part of a joke my title is prime unifying scientist. just to fix that but go ahead, please >> whether do. i'm wondering will deleting facebook really do that much practically? because one of the issues with cambridge analytica was that it isn't just the people who took the quiz who got their data kind of sucked out. it was the friends of those people if you have been on facebook ever or even if you live next door to someone who has been on facebook and is in any way connected to you, facebook knows something about you. and that is probably monetizable. is there the argument that you

need to actually engage with these companies, bring other forces and influence to bear on them if we're going on to change this reality that we're living in >> well, both things are true. i mean, in my view, facebook owes us all money because all of its earnings are braced on monetizing work we did sbhenterg data into it so this intense concentration of money and power is not something a society can sustain. so that another angle. it doesn't mean we have to engage on their own turf and rules. when you engage with somebody, you don't just tell them, oh, please tell me how i can engage with you you have to be able to set your own turf rules so it is essential that we prove that there are other ways to know people, to get news, to have a life without facebook if we can't do that, if we're so

l hypnotized, and if we even ask the question which you just asked which is how can we engage with them if we don't do it through them, if that is what we believe, we can't be citizens. to be citizens, you have to be able to stand, to be able to -- you have to have pride where is our pride >> does your argument stop or start with facebook and other social media platforms i mean, the world is becoming increasingly digitized, we're becoming increasingly connected. just yesterday apple announced an ipad initiative geared toward students and schools how much further do you see this going out in terms of i guess disconnecting and deleting >> well, look, we discovered this trick in silicon valley and i think i speak for all of us when we say that most of us have regrets right now and the trick is we discovered that we can make the digital devices that you use in your life addictive and manipulative.

we can addict you you by skirting out positive and negative appearance for you like you where a rat in a behavior x. and we did it just a little bit over time and we start getting you to do what we want and if that is selling soap for somebody, i guess whatever but if it starts to interfere with elections, with families and relationships, if it starts to make society crazy and dark, then it is not okay. worst thing about it, it just happens that negative emotions like fear and paranoia are easier to bring up, they are cheaper than the positive ones so we've ended up making the whole society a little dark and paranoid like if you think back, if you are old enough to before you had accounts with companies that create customized feeds for you, whether social media or something like youtube, i think you will remember that you were a little less paranoid and the world was a little less crazy.

still a little paranoid and a little crazy, but we've made it a little worse and that ultimately is even bad for us we can't survive that. so we have to change our business model so that that is not how we make money in. >> jaron, thank you for joining us >> thanks for having me. now we're segueing over to amazon which is down about 5%. we're getting news on amazon >> the white house responding to today's axios report that the president is quote obsessed with and will go after amazon a white house official telling reuters there are no specific policy changes regarding amazon right now, but always looking at different options. amazon currently down a little less than 5% slightly off the lows of the session. >> apple ceo tim cook meantime taking a swipe at amazon josh lipton has those headlines. >> reporter: so a conversation now shifting to jobs, to

manufacturing. apple ceo tim cook also talking about the plans for the new campus saying that we will create it in a state other than california, and we're not doing a beauty contest that is not you said from our voint point of view, w didn't want to creative this contest where you wind up putting people through a ton of work to select one that is a case where you have a winner and lots of losers. i don't like that. if states want to compete for things like that, cook saying god bless them so to your point, cook's not so subtle swipe at amazon back to you. >> thank you josh. take a look at shares, done down 4.5%. netflix also pulling the nasdaq lower right now. >> and it is interesting that he takes that swipe apple of course also looking to put a campus somewhere but not doing it with quite as much fanfare

>> s&p 2600. and the curve on the bond market, 30 year almost got below 3% but currently holding on to 3.007. going to be an interesting afternoon. you got to watch every minute it seems. let's get over to the judge and the half women coelcome to the halfte report fang under fire, the sector coming off its worse day ever and a new report saying the president could soon take aim at amazon with the nasdaq on track for its worst month in two years, are any fang stocks safe to buy? let's begin with that roll onover in fang all are down lately leading some to wonder what happens if that sector remains