headquarters, it's 11:00 a.m. on wall street, and "squawk alley" is live. ♪ good wednesday morning, welcome to "squawk alley." we begin with apple today down over a percent it's fifth straight day of losses guggenheim downgrading the stock. ubs cut its estimates and price target as well the stock down double digits over the past month and on its way to being down the seventh week in a row.

rob cira joins us. good to have you back. good morning. >> thanks very much. >> you take it to neutral and eliminate your price target entirely why? >> well, if we have a neutral rating, we get rid of price targets so that wasn't anything than our normal way we do things but for me, the change in apple is -- it's a combination of weaker iphone units, but really the kicker is i don't think that asps are going to give them the help that they did a year ago. a year ago, for example, it looked like iphone units would be weak, which they did end up being weak, they were flat last year but you had this big upcoming increase in average selling prices and asps were up 17% last year so that drove a huge iphone revenue year this year you've got an anniversary of those price increases so you're not going to get that help so you get weak units, barely an increase in the asps with that i think iphone revenue is actually declining, and that's the change.

>> rob, i've been noodling over this, as i'm sure many of us have, for days and days, and it seems to me that the ideal way to value apple is average annual revenue per customer so you should be in an ideal world looking at is apple gaining more customers year over year and are they spending more year over year, factoring in replacement cycles and factoring in services. are you saying that you believe on that basis if we had all the numbers we wanted, it's actually flat or going down average the annual revenue per customer? >> no. i think their user base is still growing. and if i look at non-iphone revenue, i mean non-iphone revenue i have continuing to grow about 12% this year iphones are still 60% of the business so this is part of the services narrative. absolutely it's growing your services revenue per user, which is about $30 a year per apple

user in services revenue but at the end of the day, apple is still -- it's a product company. they depend on selling products for over 80% of their revenue, and i don't think that's going to change. >> rob, how much do you put into -- how much analysis stock do you put into the apple supply chain when you see companies coming out saying they are cutting their forecasts because of production orders being dropped by their largest customers. i feel like we see that type of activity to some certain extent every quarter. how much of that -- i guess what's the read through there? how grave is that for the apple picture? >> right certainly the supply chain inputs our read and they're typically directionally right. they're not totally off base ever, it seems again, though, if you go back a year ago, you had the supply chain cutting numbers. the difference was, yes, iphone

units will be weaker but don't worry about it because asps are going to be up so much it's going to offset. the difference this year is that iphone units are being cut, but i don't think you're going to get that boost from asps, and that to me is, again, the big difference. >> rob, in terms of the price action here, we broke 190. i'm told a bear market, so to speak, down 20% from the highs, 186 and change is the company in here buying? do you get any sense and if not, why? if they are, what does this say given these levels already >> i presume the company is buying apple has been buying a lot of their own stock and will continue to. that's our expectation and i'm not necessarily looking for massive downside or anything my concern would be that you could buy apple at the same price a year from now. it's just so much -- it's more it may not go anywhere any time soon so yeah, it's pulled back but hasn't pulled back that much

more than the market and i do think there has been a change again, if iphone revenues are down this year, it's going to be pretty tough for apple stock >> rob, going back to this annual revenue per customer idea, it seems to me logically that you'd have to believe that services revenue growth, watch revenue, earpods, home, is not going to be enough to make up for the lengthening iphone replacement cycle. even with the mix shifting toward the high end. that's sort of what you have to believe, to believe there's no growth in apple. i wonder if that's a position that you're defending or are you just looking at the iphone and the units in isolation and saying because that isn't moving, that's necessarily going to drag everything else down >> so you're right in that i think the non-iphone revenue is growing but i also think you're right that it's not enough

so watch air pods, home pod, all that sort of stuff that's their fastest growing business, i expect, this year but it adds up to 8% of revenue. services i expect to continue growing double digits, but that is still less than 27% of revenue as well. one would like to step away and say it's not all about iphone, but in a way it kind of is and that's why in my mind if you look longer term, i do think apple -- i've thought for a while, apple has to look at new markets outside of phones and services and air pods if they want to actually keep growing because the company is so big at this stage if you want to keep growing a two to $300 billion top line, you need new markets to go after. >> you make this point at the bottom of your note. their sheer size requires new addressable markets. you wrote about an apple car in

june people have been talking about these kinds of things for years. >> right and i could still think they launch a car at one point almost out of necessity not to sound silly, but there are very few markets big enough to move the needle for apple they launched a watch. they're basically the biggest watch company in the world now, but it's almost a rounding error. they need to go after huge new markets to keep growing, and that's why i think the car market is a draw it's also going through a huge technology change right now so it kind of fits. >> rob, we'll add it to the growing list of estimate cuts, price target cuts and downgrades appreciate you coming on, rob. we'll see you soon. >> okay, thank you liberty media's investor day going on right now in midtown manhattan, a big day of interviews continues for david faber who's there now live and joins us with a special guest.

>> that's right. i am joined by jim meyer, the chief executive officer of sirius xm holdings nice to have you. >> thank you. >> you guys have inked that deal to acquire pandora decent place to start as you await approvals. hope to close the deal fairly early next year? >> yes. >> but you have yet to give targets out in terms of what your financial projections will be and what's going to result from the combination, which investors of course care about why haven't you as yet and when will you >> we'll obviously give guidance here as part of our 2019 guidance when we give it -- normally we give it in late january. we're doing a lot of work on the integration of the companies i will tell you i'm more excited about the opportunity of pandora today, even as i dig deeper into it. >> why >> because i see the opportunity. i see it intwo big areas number one, i see how it can benefit sirius by that i mean our subscribers

in terms of improving our value proposition. and the ability to take the $5 and $10 music plans, which in themselves are not very profitable, but bundle them in a way to our existing 33.7 million subscribers and give them a better value, i think in the end will make them more sticky and overall -- >> what's a bundle going to look like, jim? >> we haven't quite figured it all out yet. i think you should assume it's a better value than if you both bought separate. and we'll work our way through that i'm also -- the opportunity of being able to drive -- you know, we've been a business that built our business on subscription 96% of our revenue comes from subscription 90% or 80% of pandora's comes from advertising the ability now to have both across that spectrum i think is a really, really important tool, and i'll tell you why.

i think sometimes people get confused we're not in the music distribution business, we're in the radio business and the radio business in the u.s. is about a $24 billion business within that business, we run like this year alone, we'll run 23 million real trials i'm talking about just the trials in vehicles that are turning over we know when you buy, we get your name and address and speak directly with you during those trials and we're thrilled if our yield out of those is one-third. the other two-thirds, we don't do anything about. going forward, we're going to worry about the third and then we're going to worry a lot about the two-thirds and how many more of those can we monetize as investors think about our company a couple of years from new, the question they ought to ask us is how many of these trials are coming through. and in the end, what percentage do you monetize them at. in other words, what percent of

the 23 million are you monetizing, and what's happening to that rpu within that as you're monetizing them that's a story we understand well. >> so that's what i should be focused on in a year or two from now in terms of whether or not it's been a success. >> correct and i believe if you fundamentally look at sirius, our listeners love to listen to us in the car. they don't listen to us as much ad at home or on mobile devices pandora, their listeners love to listen to them in the home the merger can certainly help both sides on sirius and our relationships, it can bring a whole lot to driving. >> does it answer those who question, and i know you are in even more vehicles now than you had been, but does it answer that question when we all go to our car and my kids are listening to spotify on the wi-fi that's available, does it answer those who say, well, sirius is not going to be necessary in the car any longer? >> i can tell you it's totally

wrong. in fact this morning -- i've been guiding for many years and i thought i penetration rate, meaning how many new vehicles would have them. it was about 70% i think about a year and a half ago we took that up to 75. today i revooised that guidancet 80%. so i think the popularity of sirius is as high as it's ever been i think we have a long, long time we'll have a great place in the vehicle. >> we have your stock price up right now. you can't see it, it's behind you here, and spotify. when you look at their business model, do you get jealous in terms of streaming and what they have been able to do given the multiple at the trade at is obviously quite a bit higher than the one you do? >> look, i know daniel pretty well i'm not -- we're not in the same business as spotify. we're in a different business. >> you're in the radio business, they're in the what? >> music distribution business.

>> okay. >> and i think the music distribution business has been a problem for a long, long time and it's been a problem for the same reasons it's a problem today. there are other parties involved in music distribution who don't care about the profitability just think back, cds who dominated the cd business? walmart and best buy neither of them cared if they made any money in it, it was a way to bring customers into their stores think about the streaming business, apple and amazon neither one cares if they make money on the streaming part, they care a lot more about its impact so i think they have their own set of challenge so no, i don't envy that particular challenge i love our business model, i love the scaleability of it. >> and you think you continue to maintain costs where they are in terms of acquiring the content you need to keep those customers an add new ones while you face -- >> it's a great question you read a lot about what's happening with content costs

netflix, hulu, amazon, and i just kind of go, wow two important things have occurred one are nonmusic content calls has averaged for the last six or seven years about 6.5% to 7% of revenue. i don't see that changing materially in the next five years. it might tick up a tiny bit, but not in any meaningful way. because of our revenue growth that will still give us room to add more content a big thing that happened for us is in the music modernization acted, which was passed a couple of months ago and signed by the president into law, as a process into negotiation and our support for that, the three major music labels agreed to hold our royalty rates flat for the next nine years that's a big deal. that's a big, big deal so the predictability of our content costs, royalties and content i think is pretty clear for us, and i think that's a big advantage. >> and finally the stock itself,

are you going to continue to buy it back? you're somewhat what some would say underlevered right now is that a strategy that you will pursue or continue to pursue >> i think we investors ought to think about our stock, our board and chairman are committed to buying back our stock at the levels we think it's a good value. we certainly think today is a good value. >> why >> we think the stock is undervalued where it is today. we certainly believe that it has room to run and is worth more based on our growth and our profitability. and i think investors ought to think about us as buying back about $2 billion of stock a year. >> that's a lot in terms of your percentage of your market. >> jim, always good to catch you. i appreciate you taking the time. >> thanks very much. >> you're welcome. jim meyer, ceo of sirius xm holdings back to you, guys. shares are up about 1.5% as you were talking let's get over to dom chu with a market flash on financials.

>> morgan, those financials, the s&p 500 financial sector moving lower, at the lowest levels of the day right now. not helping matters are comments coming from representative maxine waters, the democrat from california she is widely expected to take over the house financial services committee in the next congress she is saying that efforts to loosen banking regulations will not be tolerated should she take over control of that specific committee. waters made those statements ahead of remarks from federal reserve vice chair of supervision randall quarrels appearing before that same financial services committee as you're seeing live there we'll keep a close eye on the banks because that particular sector, in light of the democratic win for the house of representatives. back over to you, guys. a big show still ahead here on "squawk alley." canopy growth down big this morning, down about 11% right now. the cannabis company posting a

wider quarterly loss and revenue miss bruce linton sits down with us next. the dow is down 52, the zs& and nasdaq also lower.

trade tensions heating up today, not between the u.s. and china but between two members of the economic team. >> it was trade advisor peter navarro warning wall street globalists to stop pressuring the president to cut a deal with china. >> peter navarro is a friend of mine, we've known each other for 20 years he was not speaking for the president nor was he speaking to the administration his remarks were way off base. >> when larry ku

[ phone rings ] what?! ready for christmas? no, it's way too early to be annoyed by christmas. you just need some holiday spirit! that's it! this feud just went mobile. with xfinity xfi you get the best wifi experience at home. and with xfinity mobile, you get the best wireless coverage for your phone. ...you're about to find out! you don't even know where i live... hello! see the grinch in theaters by saying "get grinch tickets" into your xfinity x1 voice remote. a guy just dropped this off. he-he-he-he. welcome back shares of canopy growth sliding this morning following its quarterly results. missed on the top line it's the first report since closing the $4 billion investment from constellation brands shares are down 10.5%.

joining us is the founder and ceo bruce linton and aditi roy is also with us from one market. hello to both of you bruce, talk me through this subsequential revenue decline. it seems to be one of the things driving the stock lower. >> canada ended prohibition october 17th a lot of our patients, i think, wondered what was going to go on and maybe they would go to a store and buy recreationally but also there was a slowdown on germany. it was more about a process of getting approvals. really where we missed the most i'll take it as my fault analysts are trying to build a model to say how much will you sell when prohibition is over. after about 100ish years of prohibition, that model is hard. so i probably should have been a bit more clear that the provinces are doing a good job now but couldn't buy anything in the quarter because they were all getting up to speed and we were getting up to speed, so none of that prohibition ending product landed in the quarter, but it's in this quarter. >> so what does that mean for the current quarter then

are you seeing more sales, more buying >> people seem to like cannabis. when it's sanctioned by the government and federally legal, we are shipping a lot of cannabis what we're having to do is not just ship dry bud but we're trying to move them to the canadian version of a gummy bear, which is a gel cap and that is kind of like a very stabilized normal, well structured product prerolled joints, moving them into things that will eventually become beverages we think in the back half of 2019. >> bruce, one of the biggest issues for recreational customers in canada is not being able to find products on the shelves. canopy has about a 54% out of stock rate what are you doing to scale up >> yeah, so we ship product in, it got bought. the reason it got bought, i think aediaditi, you were there first day, they were lined up around the block and that line kept going we're also adding more and more sku types. we have 30% of all the in-stock

product, 30% in the country is ours i want it to be more and i want it to be more valuable stuff than just dried bud. so it's just use our platform and push it out. but you've got to think in six-month sprints. so october 17th through the end of our fiscal year at the end of march, that's going to be about filling the channel because they're building out six, seven times more stores than were there on day one the next six months is about getting that product approval for things like beverages, vapables, who knows what an edible will be the final six-month sprint is going to be who has the best branded, most desired products and owns the market. as i was chatting off air with the crew here, the world is changing two weeks ago, three weeks ago, maybe a month, malaysia said they're going to begin to manage medical cannabis if they can work through a few details i fell off my chair, because that means every corner of the world is changing. if we do it right in canada, we'll just fill in after that. >> bruce, explain to me the pricing effects in the business

right now, because tillray and cronos both said the average price per gram for them fell in the quarter. for you guys it was up considerably much higher so to what degree can you continue that? is there a quality effect? is there a branding effect that you think is going to enable you to have higher pricing >> sure. so our price did jump and it's really a function of form factor if you sell people dried cannabis, the proxy in another thing might be like -- even though our cannabis is awesome, it's kind of like selling sugar cane if you cake the sugar cane and extract it, you get refined sugar. if you put that into finished goods, you pay a premium in our world what we do is put it into gel caps now we can start running clinical trials, which we are. as we upgrade, people pay more because of the certainty, stability, the confirmation of dosage and outcomes.

we're kind of at the worst stage where a big chunk of our business is still selling that ingredient, but you're seeing that transmission to finished goods over those three six-month sprints. our margin should go way up because if i make a beverage, maybe it's got two or three milligrams of active ingredient. maybe that's 10, 20, 30 cents of active ingredients so the margin opportunity improves and people will buy it because if i can give you a no calorie beverage that makes you feel upbeat, doesn't have a big drug-on-drug impact, i'm feeling good about that and the margins look awesome >> bruce, this was the first earnings you reported since closing the deal with constellation. when will we start seeing some of the synergies between the two companies? >> yeah, so it's -- in a sense it's the second deal with constellation. it was a year and a month ago they stepped up for 9.9%

they did that after we worked together on that deal for about 11 months. and for the period of that, call it $250 million, we worked on everything from what should the beverage taste like, what style of container should it be in, who wants what when. so in august when they announced it is what we're really saying is we're going to compound our focus. they're going to do only cannabis things with us and we're all in with them so i would say the synergies are amplifying but not initiating. normally you wouldn't give $4 or $5 billion to a company you just met. so obviously they felt pretty good about what we were working on. >> how are you thinking about spending right now i assume there's a ramp-up in spending as new countries open up, right? so the more often that happens, are we going to have to pay more attention to the balance sheet >> yeah. so as we open up countries, i'm going to start isolating how canada is running so i'll show you exhibit a, 35 million people here's what it looks like on

medical, here's what it looks like on rec, here's what my gross margins are and we'll isolate that if you like that, which should look really good in terms of margin and market share, buy more stock if you want dividends, don't buy the stock because we want to take that model, export our intellectual property and dominate every new country that goes under this model with the results we get from the first one. and so i think what you'll see is a lot more torque on our cash, because when we have this machine running well in canada, which i think is within, you know, by the end of the next six months you'll start to see what rec looks like in about a year from now, you'll see what the full two together look like. i think most people will say we'd like more of that and actually lend against it we won't have to inner you shares and won't have to dilute down >> coming off of midterm elections here in the u.s. last week, you have the departure of jeff sessions as attorney general. >> yep. >> are we in a stronger position

federally as a country to begin to see a shift from decriminalization to legalization of cannabis >> yeah, i wouldn't attribute where you are now to a single actor. i would say it's a whole bunch of inaction. what i see in the u.s. is an ever-increasing support. it's often the elderly, the aging, because they want to have noncurative better ways to get through life so i don't think it's a single actor, but i would be really shocked that if not sooner than later things change for cbd and thc and it becomes a medical program. >> bruce linton, ceo of canopy growth, thanks for joining us. our thanks to aditi roy as well. when we come back, one of the most influential executives in media and telecom more with john malone in a few moments. the dow session high was up 215. obviously gone red, down 60 now and a big reason is apple, which

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welcome back, everyone i'm sue herera here's your cnbc news update at this hour. senate majority leader mitch mcconnell welcoming the freshman class of republican senators to his office it includes florida governor rick scott, despite a closely followed machine recount still under way in scott's home state. >> we're here this morning to welcome our six new republican senators it allowed us to continue our majority and we'll be heading across the way here shortly to elect the leadership team for the next two years california firefighters making some progress on the

woolsey fire in southern california containment of that blaze rising to 47% from 40%, but flare-ups are proving the danger is far from over. shifting winds have pushed embers to areas that remain untouched until now. and the american red cross is asking americans to give blood after receiving fewer donations than usual during september and october. it says there is a critical need for type o blood, both positive and negative you are up to date that's the news update this hour back downtown to you, carl. >> all right, sue, thank you very much. european markets closing our wilfred frost has today's action covered against the backdrop of these brexit negotiations >> let's take a look at the broader picture, first of all. as you can see it's not a pretty one, but nothing to drastic. negati negative declines across the board. the picture in germany while softening into the close is sort of in tune with u.s. markets it did improve intraday despite german gdp declining

it grew 1.1% year over year but overall behind consensus it was affected by new global emissions testing standards in the auto sector and they will hope that is just a single quarter effect let's look at the italian yield wick tour, they're rising again. here's the two-year yield over one week you can see up above 1%, briefly above 1.1% and that compares to negative 0.55% in germany. the italian government submitted the same budget. they made some small tweaks including saying they'll sell real estate to raise funds, but in general this is italy's populist government saying to the european commission we dare you to sanction us the biggest story is brexit. sterling intraday showing the uncertainty. can theresa may get her cabinet to agree to the brexit plan. if not we can expect serious declines and volatility.

if she can, we'll see some reprieve but the focus will turn to whether she can convince parliament we've seen a slight rally in the pound in the last 30 minutes or so that's as they have announced that she will be making a statement at 12:00 eastern time, suggesting she has something positive to report we'll keep an eye. guys, back to you. >> all right, thank you. if you're wondering where seema mody is, tune in for her interview later this afternoon glenn fogel will join her at 3:00 p.m. eastern. a lot more "squawk alley" still ahead. re to help me make smart choices? well, with your finances that is. we had nothing to do with that tie. voya. helping you to and through retirement.

volatility is back again this morning the dow has swung almost 300 points but oil still very much the story. crude rising this morning but coming off its worst day in three years and a 12-day losing streak let's bring in ed morris, citi's global head of commodities research ed, good morning. >> good morning. >> so lay out for us how investors should be thinking about this relationship between oil and equities lower oil prices, higher dollar. earlier today a guest was saying that's a great setup for the fed to continue in a gradual way how should we look at it >> i think it's confusing because there's so many things going on i think the major factor in this sell-off has been psychological. it's a bear sentiment that set

in the market had been overextended it was very long we were at the time brent was hitting $86 plus a barrel. we had the longest ratio between longs and shorts in the history of the market. so that was bound to sell off. now we've gone to a very short position based on a whole bunch of bearish news. i don't think it's risk on, risk off with equities. the commodity markets and oil in particular are acting on its own and i think it's headed for a bounce we have a ways to go before the wintertime we need to count the number of iranian barrels off the market i think we'll see inventory draws before the fourth quarter is over. so the sell-off got us back to reality. then i think it oversold the market a substantial amount. you have a lot of things happening in the next few weeks, including an opec meeting. they'll all have market impacts but on the howhole the lows are

here for a while it's not to say we won't see lower prices by the ending of next year. >> so if it's psychological, how much should we attribute to u.s. action between how much we're pumping here domestically, between president trump saying that he wanted saudi arabia to keep supply high and then the iranian sanctions not turning out to be what some expected, how much of that might be short term, just the market adjusting to what the u.s. has done? >> i think a lot of it is short term, at least $5 of the price swing is short term. so yes, i think that the saudis and the russians put a lot more oil in the market. they made the same mistake in the fall that they made in july. they put this additional oil in the atlantic basin it affected the structure of brent, when brent was very tight. the market looked strong then this uplift in new production mostly went into the atlantic basin and it weakened it, so it created a

psychological mood by the way it was done i think the market in terms of producers were disappointed in the waivers that were granted, so i think the american actions in that sense were misleading. between the overproduction and what happened with the waiver itwaivers, i think that's most of it. we're seeing u.s. production now growing annualized at a 2 million barrel a day rate far in excess of global demand. so we have to look closely the next couple of months what the final data are for u.s. domestic production >> ed, i get that we're awash in oil right now and there's an overproduction argument to be made here, supply argument to be made here. but are we actually seeing any tangible signs that demand is waning because it seems to me that would have much bigger, more macro implications. >> well, it has some macro

implications you talked about at the beginning and certainly for next year. so far there's been around a 200,000 barrel a day hit that's like 0.2 of 1% of a market hit from the slowdown in global trade slowdown in global trade is related to the slowdown in growth the desynchronization of growth between advanced economies and emerging markets it's also related to the tariff moves that the u.s. is putting on china as we look to next year, growth looks pretty healthy on the other hand, there are risks. there are risks that some of the growth may slow down even more than expected. chinese growth is something to be watched the repercussions of chinese growth could be another 200 or 300,000 barrel a day hit to the market the strength u.s. dollar, which has not gone away in terms of emerging market currencies emerging markets with their currencies weakening are seeing a much, much higher wi eer billi

than we are in the united states i think there' a million barrels a day of uncertainty that's the big macro question. >> thank you, ed, ed morse from citi. let's get back to david where he has a lot more from his exclusive with john malone david? >> thanks, carl. yeah, it's a yearly investment meeting and a chance every year to sit down with john malone typically we do talk about, of course, the changing media landscape, something you and i talk about every morning at 9:00 with jim as well certainly we tend to focus on netflix, as has mr. malone for years now, by the way, in terms of originally his belief that the cable companies should have gotten together to try to combat it and his admission that, well, its place is fairly cemented when it comes to being the number one player. i did ask him does he believe that that will continue?

>> they have got a massive lead in that space. it's difficult to imagine that anybody can displace them. >> is there any chance that netflix hits a wall at some point? >> so far it's an equity play that is based upon growth, valuation of growth, and the general belief that there will be a point at which they can take their foot a little bit off the throttle, right? their stock really took off, david, when they could demonstrate pricing power. so when they raised their prices and didn't lose any material subscribers, i think the financial markets said aha, glue, right? so if you have glue and you have growth and pricing power, now the question is how to manage that so unless reed, you know, which he won't, does something really

nuts, i think it's a question of modulating their spend and coasting in to maturity, at which point they should be enormously cash generative and the only thing that i can see that interrupts that is number two comes in and starts a price war. but i don't see why number two would start a price war, right i think netflix right now provides a pricing umbrella, and as long as the competitors come at it either under that price umbrella or, like amazon is doing where it's a whole different bundle, i think there's clearly room for two or three global providers in this space coming at it from slightly different perspectives so, you know, i think netflix,

will be very successful in my opinion. i think amazon obviously will be very successful. the question is who's going to be number three. >> i think you've answered it to a certain extent you expect it to be disney. >> i expect it to be disney. >> one question that i also put to malone is his future. in the last year he stepped down from the boards of charter and lionsgate, raising at least some questions whether he was pulling back to a certain extent here is what he had to say >> first of all, my wife has a health condition that makes it much more difficult for me to travel for business. so the travel obligations of being on boards that aren't where i am, you know, is a challenge for us you know, we're coming up on 60 years of marriage, so she's very, very important to me and that's number one.

and then i have iss and those types of people saying i'm on way too many boards to begin with and they're recommending don't vote for john, he's on 13 boards or something. so i'm still on nine boards. >> that's plenty. >> the guys who are on the boards representing our collective interests are terrific people. so i don't think we lose a beat. on charter, for instance, they have invited me to be an emeritus so i call in, i listen to the board meeting i do it. i read the board material. i call in. i'm an insider anyway, because of my ownership, so i get lots of connectivity there. >> for those who view it in a larger context, well, john malone is pulling back or he's starting to think about what he wants to do with his empire. >> no. but i would say, david, as you get older you have other interests, right, and so you want to spread your time i have a lot of philanthropy

interests. i have a forestry business, i have a hotel business in ireland, i have a big thoroughbred racehorse business. these all -- these all are personal interest things >> as you get older, you have other interests. i'm trying to figure that one out myself, carl back to you. >> i'll take it, david, thank you. apple is down 2% we've got the dow down 140 points as well remo "squawk alley" still ahead. stay with us

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i'm scott wapner here's what's coming up top of the hour on "the halftime report." andrew left with us for the hour we're opening up his portfolio of short and long positions. also talking about his plans to launch a hedge us. we'll get matt boss' picks to buy and avoid with the holiday shopping season. mr. wonderful is here, kevin o'leary with us. small cap stocks we're about ten away we'll see you then >> see you then, thanks. what do you look for when you trade? i want free access to research. yep, td ameritrade's got that. free access to every platform. yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees. no trade minimums.

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we're working to make things simple, easy and awesome. let's get over to the cme now and rick santelli for "the santelli exchange. good morning and thank you there were two things at the beginning of the year i thought would be important to pay very close attention to the first was that we're going to draw more of the uncounted, unemployed, back into the workforce, and that has occurred and it's key the other issue is divergence. divergence is a complicated one. the u.s. economy on a number of fronts is doing better than the rest of the world on those same fronts now, remember, the economy and the markets are correlated, they rhyme, they shadow box, but they

aren't the same. one of the big features this year is whether chairman powell is the antagonist of all investors in a capitalist usa. is he going to slow the economy? is he making a mistake by boosting rates, grabbing more insurance for a slowdown hey, we'll have to leave that one to history but at least at this point there are key issues we can resolve. we have been talking how the russell is on a death cross, the crossing of the 258 moving averages that's a market indicator not necessarily a fundamental economic indicator many times where the market goes gives you a clue as to the economy. we've had recent data and i'm comparing gdps of europe, japan, and the u.s. y. did i pick those two? gdp is a good fundamental economic barometer as is industrial production with the

asterisk we're a consumption driven economy. let's go to the white board. on gdp and industrial production, the u.s., quarters one, two, three, you can see our gdp. japan down 0.3 they're not looking very good, are they germany down 0.2 to industrial production germany have improved but the numbers don't look as good as the u.s. if you look at japan, really not good numbers the point of this is twofold maybe mr. powell and company will pause it might make sense, the second thing, when all these numbers are getting weaker in the big industrialized countries that are exporting us, it will keep

inflation low. think about that carl, back to you. >> thank you very much good stuff at the white board. keep your eye on the averages here the dow is down 112. watching apple struggling with 188. ten-year yield if you're turning 65, you're probably learning about medicare and supplemental insurance. medicare is great, but it doesn't cover everything - only about 80% of your part b medicare costs, which means you may have to pay for the rest. that's where medicare supplement insurance comes in: to help pay for some of what medicare doesn't. learn how an aarp medicare supplement insurance plan, insured by united healthcare insurance company might be the right choice for you. a free decision guide is a great place to start. call today to request yours. so what makes an aarp medicare supplement plan unique? well, these are the only medicare supplement plans endorsed by aarp

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pg&e has resumed trading after a brief halt check out this decline now 27, almost about 28% as they did disclose today a possible equipment malfunction in the area of that deadly california fire that's a three-month chart if you look at a ten-year chart it would look almost exactly like that. severe pressure on that utility. >> another stock under pressure today, snap shares this morning after the doj and s.e.c. subpoenaed the company for information on its ipo disclosures from march of 2017, the new federal inquiries are on top of an ongoing shareholder lawsuit over misleading user growth metrics from the same period snap in a statement saying that the company has responded to the

government's request for information. shares are down about 2.5% right now. and how about one that's up, survey monkey, better than 15% on a strong earnings report. possible it has to do with more than that. this is one of the main competitors of quaultrix >> don't forget powell speaks after the bell and cisco tonight on "mad money. over to the judge. i'm scott wapner seemed like the unthinkable, didn't it? apple in a bear market it's getting dangerously close to happening this hour which could be the most ominous sign yet for your money in this market it is noon and this is "the halftime report. down 15% in a month. how far can apple fall from the tree citron researcher andrew left is here live with market moving opinions on key stocks including netflix and nvidia and sales force ceo marc benioff goes after facebook comparing it

to cigarettes. "the halftime