♪ what you want ♪ baby i got ♪ what you need ♪ do you know i got it ♪ all i'm asking is for a littl respect, come on, hey baby ♪ when you get home, mister. good friday morning. welcome to "squawk alley." post 9 of the new york stock exchange markets are reflecting a couple of things. one is a friday before a long labor day weekend, also uncertainty behind the u.s. canada trade talks which continue even as we speak. >> tech is a winner today, has been all month we are watching specifically amazon shares, one day after crossing the $2,000 mark for the first time ever, ticking closer to becoming the second company to reach the trillion dollar valuation. magic number to watch, $2051 a

share. we have it up in the cnbc wall joining us, investment adviser managing director, larry haggerty, and susan lime you're a shareholder of amazon. >> i am. >> you have been feeling bullish. when did you get in? >> i first got in in 2009 which was a good time to get in but i actually bought again earlier this year even though it had increased in value dramatically but as i look at that company, first of all, it is a retailer, it is a tech company, it is increasingly a media company they've done two things that are really smart one is that every capital investment they make in infrastructure distribution or technology, they turn into

another core business. you look at fulfill buy, amazon web services, those have become huge drivers of growth they create a phenomenal ecosystem that drives people from one amazon product to another. and i think there's a ton of head room if you look at their share of market right now, coming close to 50% in the e-commerce business, but e-commerce is only 13% of all retail so, you know, how far can it go. >> that's clearly, larry, why investors have been so enticed to amazon, the scale and how far it reaches but then as an investor, how do you analyze the stock. it is so complex so many business lines and revenue drivers.

you can't look at traditional valuation metrics. >> i think everything that's been said is spot on as the brits would say. i think what you have to do is simplify things. susan absolutely identified the strengths of the company, but there are one is the business that's spectacular nothing but blue sky ahead second thing is stock price, what you pay for the business, and the externalities connected with the stock price therein lies the risk. the stock price, a trillion dollars. if amazon is to grow 30% from here and the market is embedding expectations of growth at least that because it sells at 50 multiple of cash flow which is a story onto it self, you're looking at revenue growth in the next three years of $260

billion. now is the government or governments of the world likely to allow that to happen because at the end of the day amazon isn't creating businesses, it is taking businesses from people that already have market share and i think the number that susan cited that's the tricky number is that they have 50% share of e-commerce. if you go back a century ago, look at the standard oil investigations, rockefeller's monopoly was in distribution and they broke up that monopoly. i think it is very, very likely in the next one or two years under the trump administration that the republicans are going to be talking about antitrust in the area of distribution and that's a risk in my opinion that's substantive, not existential. when you buy a company 50 times cash flow, you better be darn sure the government is your friend, and therein in my

opinion lies a big risk, and the president already expressed himself on this. >> it is the conundrum of watching amazon and regulation, they take share but ends up being disinflationary which is arguably good for the consumer we have comments now >> have been on this very important negotiation. we are not there yet as has been the case from the beginning, canada is a country that's good at finding win-win compromises. having said that in this negotiation we always stand up for national interest, that's what we're going to continue to do we're looking for a good deal, not just any deal, and we will only gragree to a deal that's a good deal for canada we're not there yet.

>> all right that's the foreign minister of canada commenting on progress or potentially lack thereof with the united states. saying not there yet, echoing what trudeau said earlier in the week, which was no nafta deal is better than a bad nafta deal. >> she said traditionally canada is a good compromiser, but we're only doing something best in our national interest. we're not there yet. the update, sounding less optimistic since we're getting them every few hours of a deal. the day is not over yet. i guess there's still hope >> reflecting also for the canadian leadership, there's no domestic political time line that dictates they do something now. it is about mexico and the u.s

i think the polls in canada show if there's no deal, the u.s. would get blamed as opposed to the prime minister. >> they back trudeau's tougher stance never mind it is in french. we'll monitor it keep you posted when she starts speaking english. >> toronto star, who knows if this means anything at all, toronto star has a piece up saying talks were up ended by some comments about canada that the president made off the record yesterday not much more than that. clearly something happened in the last 18 hours that caused talks to sour somewhat

let's take a listen again. >> for the hard work both our teams have been doing this week that we're not going to be negotiating specific issues in public and i want to underscore, you know, this is a negotiation that has been going on for more than a year. the starting positions of both sides were quite far apart at the beginning. we have over the course of that year been working very hard. there have been moments of drama throughout a lot of you reported those moments. we are committed speaking for canada to a deal which is a good deal for canada, not just any deal we are very good as canadians at finding win-win compromises. at the end of the day we're only going to sign a deal that's good for canada

>> are the americans negotiating in good faith? >> ambassador lighthizer and his team throughout this negotiation have been working really, really hard as i said, our starting positions at the beginning were very far apart i think at this point we know what each side needs and we're working hard to find a way my job is to find the deal that works for canada and i'm working very hard to do that i know ambassador lighthizer has a very good understanding of the canadian positions bob and i joke sometimes that we could switch chairs, we know each other's position so well. and we're working hard to find that win-win space i think that as we have said

from the beginning we know that canada and the united states are partners who are extremely important for each other we have the largest unmilitarized border in the world. canada is the largest market for the united states, larger than china, japan, uk combined. more than $2 billion of business every day. this is an important relationship for both sides. i know that both sides understand that. and our job now as the canadians in the room is to work really, really hard to find those win-win outcomes and at the end of the day always to stand very clearly for the national interest and for canadian values. we will be back later today and we can talk then

>> all right there she is foreign minister of canada, saying we're not there yet when it comes to deal talks with the u.s. to revamp nafta she's been meeting with ambassador lighthizer for a few days now, since wednesday when she flew into washington, d.c. after the deal with the u.s. and mexico under threat the u.s. would move forward with mexico alone. friday was the self imposed deadline the trump administration wanted to get done, revamp nafta to get it done with the current president of mexico outgoing before the new administration comes in, before new congress comes in after the midterm elections. let's see if they get done by end of the day in terms of market reaction, the canadian dollar is a leg lower on news, that's been the barometer whether canada would be involved. it had been rallying on hopes of a deal that canada would be brought in there's too much at stake for canada and the u.s. not to make

this deal. but sounds like the u.s. is increasingly coming from a position that you need this and you need to join us and you've got no other options 75% of your exports come to this country. >> asked if the u.s. was negotiating in good faith, declined to agree with that characterization. >> i said this morning, top headline or top op-ed on the home page of global mail, why canada could tell the u.s. to shove it on nafta. there's a branch of the media, canadian media saying let's play harder ball. >> and this is president trump's style. he comes from a totally different background you're not going to get normal trade talks or diplomacy the question is is he going to get the deal done, is he going to keep our relationship with our best friend, canada. there's a bombshell leaked to toronto star about some secret off the record talks president trump made during an interview with bloomberg that were pretty

aggressive, that he is not making compromise in talks with canada, he has some insulting things he can't say because they're going to have to make a deal it is all going around let's see what happens by end of today. doesn't feel like friday before labor day. >> not really. hard not to think about coming out of g7 a few months ago, the kmept comment that was later revoked about trudeau and special place in hell, we talked about the comment coming out of the summit who knows if it has any cosmetic bearing on the degree to which talks are comfortable or not >> just to recap, this comes from the fact that we have put on tariffs on steel and aluminum for canada, when they ship steel and aluminum on the grounds of national security concerns, we have done that with a number of close trading partners canada in return placed retaliatory tariffs on all kinds of products that come across the border from canada into the u.s., like food, soups, all

sorts of products we export. that's the current state of play now there's no deal on nafta few hours left of a friday susan, larry, sorry to cut you short. good to get your thoughts on amazon we'll have you back on and the dow turned lower, down four points canadian dollar is weaker by a half percent "squawk alley" will be back after a break. could help them save money on car insurance? yea,that and homeowners, renters, motorcycle and boat insurance. huh.that's nice. what happens when you catch a fish? gecko: whoa. geico. more than just car insurance. see how much you could save at geico.com. i'm ok!

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affairs minister speaking on on-going talks moments ago >> both the canadian and the u.s. teams have been working hard this morning as we have been for more than a year on this very important negotiation. we are not there yet >> joining us now to talk about the state of play, jerry diaz, president of the largest private sector union good to see you this morning you said this week that for canada there is a price that's too high for a deal and that canada should not actually pay that price in these negotiations what is that price, what is a step too far to go, where do you think negotiations are in relation to that >> first of all, canada will never give up its cultural identity there's a price that's too far or too expensive to pay and that is clearly one of the areas that's in disagreement we're not going to allow the

u.s. media to control canadian culture. there's only so much we're prepared to do, that definitely is in the no fly zone. and chapter 19, need a dispute mechanism because of the challenges frankly that the trump administration puts before us, so to somehow allow all disputes between canada and the united states to be handled in u.s. courts, and then to go to world trade organization, that can take years, it doesn't make a stitch of sense. there's areas that we are not very flexible on, and candidly it is decision time. do we sign a bad deal or not sign a deal at all i would like to sign a deal that's fair to all of the parties. that's the focus of today's discussions. >> if the cost of no deal is additional tariffs as the president has threatened perhaps on imports of autos, how is that going to effect your members >> it is going to effect them significantly. 25% tariff would be devastating for the auto industry in canada.

then it would also be devastating for the u.s. workers as well because canada would be forced to retaliate. you're looking at a situation where nobody will buy any north american built cars candidly u.s. workers will suffer massively. why? 60% of all parts that go into canadian assembled vehicles come from the united states number one export market for vehicles from the united states is canada. why donald trump would shoot himself in the foot and more importantly american workers doesn't make any sense the only winning in that type of exchange will be the cars that are imported to the united states from japan, korea they already are selling about 2 million vehicles a year in the u.s. market or the u.s. sells no vehicles to those markets at all. why would you want to hurt yourself and benefit markets, benefit countries that you have no access to in the first place. doesn't make a stitch of

economic sense but unfortunately at this point in time one can argue that trump is arguing politics. >> how many of your members are employed by american automakers? >> well, the auto industry in canada, we have 40,000 assembly workers, another 80,000 in auto parts. lion's share i represent if you look at the united states between auto and auto parts, you're looking at almost a million direct jobs. this will have a significant impact on both our economies and frankly the threat of tariffs is rather frankly doesn't make a stitch of sense. >> meaning you don't think it is going to happen or you're afraid it could happen and would hurt >> well, it could happen and could hurt but i'm not going to predict what donald trump is going to do. i am not convinced anybody can do that. ultimately it would be foolish for americans, bad for american jobs, for american consumers, devastating for workers on both sides of the country

so nobody thinks it is a winning strategy clearly donald trump may be the only person that thinks this makes sense. >> coming into the latest phase of negotiations canada following that agreement in principle between the u.s. and mexico, there was some talk that many provisions agreed to with north american content of cars, for example, and also the kind of minimum wage standards for auto workers would be very much amenable to canada and therefore maybe there was a head start having canada sign on. that's not enough at this point? >> first of all the changes made for the auto industry i will argue really go a long way to benefit canadian and american auto workers, and frankly it will help auto workers raise wages so they could actually afford to buy a car they build was it significant, the answer is yes, but there's much more to the trade deal than just the auto industry. if i'm looking at it from a canadian, american point of view

based on today, that is important, but overall it is only one piece of the puzzle we cannot accept a trade agreement that doesn't have a fair dispute mechanism we're not going to allow the united states to be the sole deciding factor and wait for years for a ruling from the wto. if i look at the lumber dispute, trump administration slapped a 25% tariff on soft wood lumber imported to the united states. all that's done is drive up the cost of new homes in the united states thousands and thousands of dollars. so canadian workers haven't been negatively impacted, the only people negatively impacted are american consumers, and why the trump administration would penalize his own citizens, once again, doesn't make any economic sense. >> we have been watching certainly what lumber has done to input costs if all of what you're saying is

true, why do you think the mexicans were quick arguably to cut a deal and were willing to take part in that rather gracious conference call earlier in the week? >> because i think mexico realizes they have to concede the most mexico frankly got the better end of the stick for the last 24, 25 years, and they realize that any deal was going to have to address some of the major contentious issues the whole re-negotiation of nafta started over shuttered plants in the united states as a result of cheap wages in mexico. i believe these pieces have been resolved, but mexico needs the canadian market to have any sort of successful economy. they couldn't deny the fact that they got the better end of the deal canada closed four auto assembly plants, united states closed 10. opened 8 in mexico, opened two more in mexico bmw plant next year will pay

workers 1.10 an hour it is clear to see why there was a straight migration of jobs from canada to united states and mexico auto isn't the only industry, there's aerospace, you can walk through so many other industries negatively impacted. so mexico had to give up the most why? because they ran frankly an industrial strategy and policy that siphoned good paying manufacturing jobs from canada and the united states. >> what if u.s. and mexico go at it alone and canada does walk away and a deal doesn't get reached, what would happen to your industries and your members? >> ultimately there will be a deal the only question is when. the auto industry, for example, is so -- many assembly parts will cross the border five, six times before they're assembled on a car once again, the auto industry is not going to get pushed around

they're not going to accept a flawed business model to appease donald trump nobody is going to invest billions of dollars in canada and walk away from those investments without a fight. this is an industry where we completely rely on each other, and an economic system of suicide doesn't make sense to me or anybody else. >> jerry, we'll come back to you in a moment. i want an update on all of what we witnessed so far in washington eamon javers >> reporter: apparently obtaining a leaked version of off the record comments the president made during the bloomberg television interview in the oval office, yesterday, the president suggesting he hasn't made any compromises with the canadians at all according to the article, but he doesn't want to say it publicly, he doesn't want to embarrass the canadians, put them in a

position they can't agree to a deal the president saying off the record to the bloomberg team according to this article that he is driving a tough bargain here, but so tough he doesn't want to brag about it publicly, it could put the canadians in position they can't agree. will that force the canadians to demand some kind of concessions in the negotiations that are on-going now that's fascinating two things to discuss here one is why would the president say this, and second one, how did the comments get to the toronto star fascinating on both levels first one seems clear. the president wants to boast about his tough negotiating skills, realizes if he does that on the record that could scotch the negotiations, put the canadians in an embarrassing position according to the article he does it but does it off the record. the other question is a real mystery, how off the record comments in the bloomberg interview ended up in a toronto newspaper. that one is fascinating.

according to the newspaper, bloomberg is not denying comments, the white house is not denying comments, just saying if those comments were made, they were off the record and should remain off the record. a fascinating bit of media and political intrigue and fascinating moment in the negotiations on-going with the canadians between donald trump and justin trudeau's teams here in washington. >> bloomberg's response, arguably puts heat on them to protect comments that should have been off the record, if in fact this is all true. all of that said, things are said on both sides off the record, during negotiations, it seems a stretch to think talks were truly derailed by one party or the other, talking some smack, talking rudely about the other party privately. >> they have been talking smack publicly so the private smack talking isn't going to derail negotiations if the public smack talking hasn't done it already

it might give the canadians ammunition to wave the toronto star over their heads and say look, the president is saying he is not giving us a single thing. we want some concessions, see what the u.s. side has to offer. in that way the president by making comments may have undermined his own side in the on-going negotiations. i don't think anybody involved, everyone here has thick skin, i don't think anybody involved is going to be horrifically offended by this, but i think it might give the canadians some leverage the white house wants the deal done, don't want anything to disrupt it in the last hours here and they want to move on. >> i don't understand how you can ignore the economics $340 billion of exports to canada last year $332 billion of imports from canada last year we both need each other. it is a state issue, it is an economic issue above all do you have any idea what they're haggling over?

>> we don't really there have been rumors swirling around town, nothing we can pin down to the point i can report it to you, and these sides are not leaking. both said they're not negotiating in public and have held to that it is a very complicated agreement, a lot of detail you're right the two economies are so deeply intertwined, it would be in everybody's interest to get it done and as quickly as possible, nail something down, provide certainty for all of the businesses that do business in north america. good percentage of the global economy, too ultimately incentives are in place for a deal today, the question is whether some of the optics and unexpected things like this can be the hiccup that disrupts everything and throws the timetable off. >> thanks for the update as always please check back with any news. and thank you to jerry diaz for joining us appreciate your insight.

during all of this, senator mccain's funeral is happening in washington, lying in state in the capital rotunda. sue herera has the update. >> good morning. we take you live to capitol hill where senator john mccain is lying in state the public will be able to come in and pay their respects to the late senator basically both parties have come together to honor this true american hero. he will lie in state today, and tomorrow there will be a ceremony at the national cathedral, and he will be interred in annapolis, maryland. a short while ago the mccain family was present, speakers from both sides of the aisle paid tribute to senator mccain, and that included the vice president, pence also in attendance to let you know was senator mccain's

106-year-old mother roberta, remarkable woman she was in attendance for the ceremonies which praised senator mccain for his ability to reach across the aisle, for his ability to put country before politics, and for his ability to accomplish quite a bit in his tenure as a senator in the senate and he is being revered and honored by so many across the nation today we will continue to monitor the situation on capitol hill. i mentioned the public is lining up outside and it is pouring rain in washington, d.c. just as we saw in phoenix, citizens are willing to brave the elements, whether it was the 106 degrees in phoenix, they lined up to pay their respects to the senator, and they're doing the same thing in washington, d.c. where the weather once again is not cooperating, but they will have six hours to pay their respects

before the -- there's moments ago roberta mccain, behind her one of john mccain's sons. his two sons are in active military service now the family is having some private time now with the vice president, then there will be more ceremonies throughout the day as the public is able to come into the rotunda and pay their respects to the late senator mccain who passed away from brain cancer at the age of 81 years old carl, i will send it back to you. >> sue, thank you very much for that ckn montra ba ia me

welcome back to "squawk alley. dow turned lower, down 49 points s&p 500 down 3 points. sort of light trading ahead of the holiday weekend. nasdaq is higher the big highlight, canada's foreign minister updating trade

talks with canada joining nafta negotiations ahead of today's deadline saying we're not there yet. that sent the canadian dollar down, losing three-quarters percent, sizable move there. mini move for u.s. stocks after they were higher nasdaq up, and winner of the week, up 2%. all major averages with a healthy gain for the week. 8 out of the last 9 for the s & p and dow. >> watching apple action as well hanging onto a gain of 227 they sent out invites and rumors are swirling about what the tech giant will unveil september 12 early reports suggests maybe three new iphones, another all-time high today. joining us lauren good, senior writer with wired magazine, and a partner with nea good to see you both >> thanks for having us. >> good morning. >> let the speculation begin this is the fun part of the phone cycle.

>> let the rumor mill begin. as you mention, it is widely expected or been reported that we could see as many as three new iphones and potentially ipad pros and also a new apple watch. >> from what you've seen so far, what is notable about the design or internal functions of what we could see. >> reports suggest potentially three new iphones, we could see a larger iphone, with a 6.5 inch display, would be one of the largest iphones ever, we could also see a 5.8 inch iphone, which would be similar in form factor to last year's iphone x, and there might be what you want to call a cheaper iphone, depending how cheap it is, that would have different kind of material than the other, whether it is display or body, different from the other iphones

>> so far on prior cycles and recent ones, big discussion is asp, average selling price and degree that apple emphasizes premium or value does this push us one way or the other? >> you know, i don't know if the asp pushes us to premium or value. what i do know is that every time apple innovates on its product and improves technologies, it helps itself and silicon valley every time apple comes out with new technology, it means new startups, build applications for apple that generate revenue for themselves and also for apple. the connections that apple has to the founders of silicon valley are deep and help each other. >> lauren, it seems like maybe we're setting up for a test on

what the character of the upgrade cycle is for iphones expectations weren't that high heading into the revelation of perhaps three new phones what are the signals now in terms of demand for this kind of mid cycle upgrade or halfway upgrade, and are we sort of spreading out demand for iphones over time? >> that's a great question this is what you might call an s year, not the year when you see the brand new thing, most innovative thing, it is usually an upgrade year. people take that into consideration when they consider whether or not to buy a new product. that said, you may see some consumers that haven't updated since the 6 and 7 line skipped the iphone x last year this might be the year another thing to keep in mind, it is apple strategy not just to make it about the iphone but about other products, they want to lock consumers into their broader ecosystem. there may be other products that come out, people may say i'm not

buying the thousand dollar iphone, but this will get them locked into using apple services >> lauren, all we can do is wait until the 12th and speculate like crazy until then. thanks very much, talking apple and some of the things we may or may not have learned out of 9 to 5 mac yesterday. news out of ford, dow-jones reporting that the company ditched plans to import the focus compact car from china to the u.s. starting next year, citing expected hit from import tariffs that were put into effect earlier in the summer. >> you know, we keep hearing a couple of themes one is the global supply chain that the auto companies created, and also the very difficult market for small cars in the u.s. and how you have to keep costs so low, it is very difficult to make them here and turn a profit. those two things running up

against the tariff barrier that makes it that much tougher to even import those models. >> right obviously the thinking here is purely economic, makes sense to build a car in china, lower cost, until you have to pay another 25% tariff to bring it back here to the united states i think the other headlines here, it won't have a big impact on sales, no jobs will be lost by cancelling the u.s. focus active sales does it mean more production at home, if so, that's been one of president trump's objectives and he would look at this as a win we don't want all the cars built in mexico and china, we want them to be built here. we'll level that playing field phil lebeau. focus cars are made here instead if not made in china because of the tariff >> this is the car that was going to be made in mexico, then make it here, then in china. this is the car that doesn't have a home. keep in mind, people are moving

away from cars ford has essentially thrown in the towel when it comes to cars. it is going to be basically coming down, making a limited number of sedans the focus, while that name will be here, the car you're expecting to see out of china in 2019 was in flux, they're shifting most focus and attention, pardon the pun there, over to suvs, crossovers and pickup trucks. this move is clearly an indication that ford not only is trying to figure out what to do with tariffs in relationship to any vehicles built in china and brought back here but at the same time this is a portfolio that's a mess. they're trying to figure out where they go from here. you've got two things at play. clearly tariffs are an issue, that's one of the reasons they're explaining here, but at the same time this is a company that's trying to right size, fix its portfolio in the united states and the focus is one of

those vehicles that is in flux so to speak as they shorten, shrink the number of cars that will be sold in the states to answer the question, long winded of saying, sara, i would be surprised if you see the focus built at a facility here in the united states, the focus we see on the streets right now. >> tough week for ford moody's downgrade, then morgan stanley, comes out says cash flow will fall significantly next year, substantially short of the dividend payment, and they forecast a 50% cut in common dividend. >> at the end of the day, comes down to lack of clarity. nobody on wall street knows what the reorganization plan will be. they cancelled an analyst meeting scheduled for early september and said we're still trying to figure out exactly what we're doing with mobility services when you talk with any analyst, they say the same thing, which is look, there's real potential at ford if they can fix the

business, figure out where to go from here. nobody knows where they want to go it is unclear, even when you talk with people inside ford where they're going in the future all of that is weighing on the stock. now you see a stock down almost 2% today, down at 951. i'm not sure what the 52 week low is here, but it is a multi year low, down in the 935, 940 range. so guys, this is a company that's struggling to figure things out >> 935, 52 week low, just about. >> quick thought i believe gm also makes cars in china resold here, maybe be on alert for that if plans have to change. >> longer the tariffs go through, more they impact business decisions phil, thank you for your help on that as we head to break, look at where stocks are this hour dow turned south, down 54 points, s & p down 4 nasdaq remains positive, up a quarter percentage point at the

start of the hour, before we adard we're not there yet on the tre agreement with canada and the united states. "squawk alley" is coming right back

here's what's coming up top of the hour. with august just about in the books, debating what the fall will hope for. several events are looming and game on for the call of the day. traders tell you whether it is time to get out of some winning trades, and jon najarian getting

ready for activity today a big name is on the board find out what stock is like based on that. meantime, dow down 54, s & p down 4 and change, not far from session lows, but obviously very gin idrice action vefray before the labor day weekend back in a minute

facebook, twitter, google moving lower joining us this morning, microsoft's jaron lanier t good to have you back. thanks for your time >> delighted to be here, thanks. >> i'm curious to know of facebook, twitter and google, whose testimony you're more interested to hear next week and why. >> well oh, man. facebook has a history of making our representatives feel stupid, which i think inappropriate. if you have somebody who knows about oh, i don't know, plumbing, and they're coming to the senate to testify about the suer readiness for a flood, they don't feel a need to humiliate the senators because they don't know anything about plumbing but when a silicon valley person come, they have way of making them feel foolish.

it's our job to explain ourselves and not somebody else's job to be suddenly technical. i think silicon valley does best when it's humble and sin vecere >> so i'll give you another choice the democrats seem to be actually pledging to crack down on corporate monopolies. the republicans lwill want to g after the liberal coastal elites in silicon valley for censoring their speech which party should these tech giants be more afraid of >> t first thing is that conservative point of views are well representative. that is not what they're talking b about. they're talking about this cranky, paranoid thing that's the thing people feel the need to regulate because it's engineered by russian v

intelligence there's a weird problem there. you know, the company's profit on themselves. when facebook move d fast to break things, stuff they broke was institutions like journals, like journalistic entities that would maintain quality that people would join voluntarily, but still have standar standards. this idea there's some global overlord to tell you who's the right thing to say can never work no matter how smart and well intentioned there the only alternative is to recreate the society that would undermine. >> we have to or can facebook and google help?

if they got themselves into it, can they get themselves out? >> okay, look, the problem is that facebook and google said instead of us being normal business, we're going to be these weird businesses where anytime two people communicate, it's finance by third person who wants to manipulate them and as long as that's the business model, of course you undermine the ability to create brands that enforce quality because it's all about the manipulation then you create every insent neviaeh the world for all the cranky pair noid stuff that has taken over what we have to do is change the business model so they become more like normal, real busine businesses where the user is also the customer so that would mean you start getting paid when your stuff goes viral pay a modest fee >> sure. >> it works. netflix proved it works. we useded to think, oh, nobody will ever pay for a movie online because you can get them for free, but if you're willing to pay for them, you get pique tv we need to go through that transition to clear the trash

out of the internet. >> that's going to be interesting from a valuation standpoint as investors get used to cha that i think of ideas hope to talk to you next week because it's going to be kind of nutty on the hill. >> i think it might be, yeah >> thanks. >> okay. >> all right session lows on the dow. ght s down just about 60 points rinow. more "squawk alley" after the break. stay with us

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both canadian and u.s. teams have been working hard this morning as we have been for more than a year now on this very important negotiation. we are not there yet >> that was canada's foreign minister earlier this hour giving some of her more pessimistic comments this week on the intense nafta negotiations that have been taking place in washington those talks were set to conclude today and new this hour, the toronto star publishing comments calling it a bombshell, which they say were given off the record to bloomberg news where the president says he will not be making any compromises at all in the talks with canada, but can't say it publicly because quote, it's going to be so

insulting they're not going to be able to make a deal of course this comes under the threat of the u.s. and mexico going under the threat unclear if they'll let the administration do that it has the ultimate say on trade deals. also under the threat of potential car tariffs oni on canadian imports into this country. so much at stake and here we are, down to the wire in another afternoon of marathon talks. >> she was emphasizing the progress made versus a year ago as opposed to anything really specific this week as they've been talking there is that sense out there that canada has the able tilityo wait this out and drag feet and risk retaliation, but obviously, tas pretty kind of nip and tuck game they're playing now it's hard no know what the sticking points are because there seem to be particular things >> last day of august, we're going to walk in on tuesday, it's going to be september we'll have the fed on tap. apple, testimonies from social

media chiefs, tariff, china then seasonality. >> it's going to be september. >> it's going to be front and center >> i don't know if the fed will be the thing on tuesday, but no doubt about it >> so far, it's been a buying opportunity. all the tariffs. >> when ever you get a sell off on the headline, we'll see >> dow down 73 have a great long weekend. see you tuesday. let's get to the half. welcome to the halftime report top trade this hour as a strong august come to a close, should investors expect stop stocks to fall forward or back in a historically rough month for the markets, here to debate, jim, jon, j.j., and from lake joseph, canada, kevin o'leary. let's begin with the markets this the final trading day of what's been a good month for