good morning it is 11:00 a.m. at united technology headquarters in farmington, connecticut, 11:00 a.m. on wall street. "squawk alley" is live ♪ ♪ ♪ good tuesday morning welcome to "squawk alley." i am carl quintanilla with morgan brennan, mike santoli at post 9 of the new york stock exchange

jon fortt is on assignment again this morning the president's comments to the journal on trade and potential new tariff on iphones dragging down apple stock >> reporter: the president was making two distinct threats in that interview with "the wall street journal." first, he said it is highly unlikely he would hold off raising tariffs on the $200 billion on chinese imports the tariffs are set to go from 10% through 25% on january 1st second, he said if he and president xi can't come to a deal during a dinner at the g 20, he is willing to push ahead with another tariff on products imported from china, and the rate would be between 10 and 25%. those remaining products do include the iphone as well as laptops, but it is important to read the full transcript with

the president. it is actually "the wall street journal reporter that brings out the prospect of iphones being targeted, and president trump responds saying maybe they would be included, it depends on what the rate is. a 10% rate, people could stand that easily. of course, the tech industry is still on guard against the possibility of additional tariffs. one group put out an estimate that showed that the china tariffs currently in place are already costing the industry an extra $350 million guys, they say that's proof that the chinese tariffs are actually costing american companies money. back over to you >> you have been covering the tariff situation in great detail for many months now. in terms of this idea that the president would put it out there ahead of this very key g 20 meeting,the possibility of continuing to raise tariffs come

january 1st, or adding more tariffs, is this the play book we have seen ahead of negotiations before? >> there's certainly a lot of rattling going into the g 20, posturing on both sides. it is clear there's been disappointment in progress of talks so far, both sides hoping for a break through come end of the week what's notable, the article seems to suggest the increase in the current tariffs is not part of what's up for negotiation at the g 20 china had hoped they could perhaps stall that increase or talk the president out of it it sounds like for now that's baked in, and what's really up for discussion is whether or not additional tariffs get put into place. >> thank you it will be a heck of a weekend in argentina should investors be wary of the president's latest comments on trade and tariffs bring in shawn matthews, and brian levitt

good to see you both a lot of commentary on how the rhetoric seems ex-tem pr-- how process this >> i think he is going to do the same thing he is negotiating beforehand right now, he is trying to talk about how potentially tariffs will come in if nothing happens and goes his way this is his negotiating style. it is nothing more than that >> people still have to make investment decisions. >> i think if you're making investment decisions based on a week in advance pregame talking, you're trading you're talking about trading day-to-day basis, that's different. talking investment decisions, something drastic. >> what do you think >> i think that's the right way to think about it. if you're a long term investor, look through the noise if you're trying to outperform in the short term, consider what

the ultimate outcome of this will be. i suspect the negotiations, we put it out there, the president puts it out there, slowly walks it back, ultimately that eases pressure on the dollar we get into an environment where the u.s. slows and is in more goldilocks rates and inflation environment. that should be the thing for risk assets globally if i am wrong and we go too far, it will hurt corporate profit margins and markets won't post good returns in 2019. >> shawn, there has been a lot of for lack of a better word noise, including the fed chair's comments this morning. what's your take away from that? >> i think protuck activity will come out more -- productivity will come out more that's the key driver. they're starting to let it out there. i think they talk about it in immense ways in three to six months they need productivity or perception of that productivity to go up to be the reason they

don't raise rates any more >> said that much this morning core capex which is not the most encouraging chart in the world. >> it is not a lot of money that came to the united states was used for buy backs. we didn't see significant surge in business investment, even with sentiment at the levels it was. the key thing to consider, is the u.s. a rate sensitive economy. we have seen housing and auto slow the u.s. economy is slogwing and will slow in 2019. the federal reserve if they continue to raise rates will flatten the curve. >> what do you make of the fact it seems like right now the bull case rests on some kind of relief, either on trade or the

fed, right it is sort of like maybe expectations are beaten down for what we can get from g-20. if investors are grasping for an all clear signal because we can't digest that earnings will slow to some single digits number percentage growth next year. >> it will slow to single digits the question is what is the value you're talking about let's face it, if you look at a portfolio now, your expectation should go down to 5 to 7% returns. and that wouldn't be shocking in 2% inflation world we had a goldilocks environment for an extended period of time it wouldn't be crazy to have mid single digits returns going forward for several years, and you're going to have credit issues as well i think the stock market has been single digits going forward. >> brian, i want to dig back into exampleex it seems to be a -- into cap-ex. >> we have been in an elongated cycle. businesses have been flush with

cash a long time businesses are going to put money to use where they see demand for products and services this move back of money back into the united states, yeah, it did lead to improved sentiment, but you only deploy it if we are in good backdrop to deploy that. we are late in the cycle, concerns on trade wars, it puts a lid on cap-ex. it is good for buy backs and dividends, up until october good for risk aspects this idea that the u.s. would head to a higher sustained level of growth on the back of cap-ex this late in the cycle, i never bought it. >> you bring up corporate credit, you sound like it will be manageable, despite bill cohen's op-ed, for example. >> i think 2019 you'll see cracks 2020, real implications, especially if productivity doesn't accelerate at some point here i do think it is manageable next

year i think 2020 will be a problem. >> why the difference? >> i think you still have a wave of debt that's going to have to be refinanced that's 12 to 18 months out you think about those companies and a lot aren't making money, will have a tough time rolling debt, you have a tremendous amount half the investment grade bond world is bbb we trusted rating agencies last cycle. how did that work out? we're trusting them again, right? half the world is bbb. that's going to be a problem >> how about the fact that the credit rating agencies are st g stingier than last cycle maybe that's why is that a factor >> maybe, maybe not. there's still a tremendous amount of companies that aren't going to earn money.

they have to pay their debt if they can't roll it, they can't do that. that's the real challenge. if revenue starts to decline and you go into recession, then it becomes a real problem we have to balance that real interesting environment. >> so bottom line quickly from both of you, brian, start with you, where do investors put money to position for 2019 >> for 2019, expect a slow dounlz down a favor to true growth companies in the united states i would look oversees. i know it has been a tough trade. needs to be catalyst to unlock value in emerging market i think the u.s. slowdown and some agreement on trade could be that catalyst. >> would be a renter of assets, you have to trade things you think about that, returns will be relatively low i would use cash as a real asset class next year. >> there is an alternative now >> thanks, good discussion still ahead, more on what a potential iphone tariff would mean for apple's bottom line

and utx getting slammed this morning. what the ceo says about the company plans stoplit "squawk alley" continues after the break. this isn't just any moving day.

this is moving day with the best in-home wifi experience and millions of wifi hotspots to help you stay connected. and this is moving day with reliable service appointments in a two-hour window so you're up and running in no time. show me decorating shows. this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. welcome back to "squawk alley. the five day holiday shopping spree has come to a close. cyber monday seeing nearly 8 billion in sales according to adobe analytics. joining us to discuss, rbc capital markets brian tunic.

>> good morning. >> i am going to ask the same question i asked a number of guests on air the last couple of days is the story still amazon versus everybody else or when you see more collaboration and retailers breaking down, listing stuff on amazon's platform, is it much more nuanced >> i think it definitely is more sleeping with the enemy the last couple of years. a lot of these brands realized they can't go at it by themselves you have to look at what's happened here. we've got about $6 billion of retail bankruptcy and store closings the last couple of years. i think that's helped put a better footing on the companies that have survived amazon has certainly upped the ante on shipping and delivery, i think margins of existing retailers will remain depressed,

but i think surviving is no longer the big question. we're actually in a better way, consumer spending and consumer confidence is strong. >> how key is the bread and butter e-commerce business of amazon still to the company more broadly and to the stock and how investors are thinking about it, especially when you have the front page of "the wall street journal" talking advertising, aws reinvent conference where jon fortt is at under way now. >> it is that bridge that gets them to the next areas of growth which we can discuss later, and that's advertising as you said, aws. and a few other areas. connected tv being another area. today, the stock continues to trade first and foremost on its ability to grow faster than overall e-commerce and continue to therefore claim disproportionate amount. our work would indicate in this holiday season, amazon will get

about 50% market share of all gross merchandise volume and about a quarter, 24, 25% of all revenues they already dominate. they're growing faster to brian's point, i think the reason what amazon is doing is important is it is elevating everybody to a better game that ultimately is good for the consumer >> brian, if that's the game, which among the traditional retailers you cover are better and worse position seems like the market is going after mall stores that have too many stores and they have to be in closure mode like the gap where do you think winners and losers set up? >> companies that have gotten to 25% or better e-commerce penetration, it has been painful on margins, right? remember, the pie isn't growing big enough to support 25%

e-commerce growth and obviously have flat store growth the pie is not growing fast enough we have seen $16 billion of retail bankruptcy and store closings, more to come, watching sears, bon ton, et cetera. there are market share opportunities, but it is painful on those delivery costs. the consumer wants it all. they want same day delivery, they want to be able to return in stores. 30% of everything bought online is returned. these are painful economics. >> 30% >> 30% even more if you look at shoes and other categories logistics, distribution centers, these are a lot of expenses and companies that were levered up in the p/e boom didn't have liquidity to make the changes, they're going bankrupt 25 companies have gone bankrupt. i think the crop today is in better footing, they have the balance sheets and have already

done the store closings that we already need to see. >> one narrative that's been spun is tax refunds coming up in the spring will make the first half of '19 look better than the back half. is that consensus now? >> i believe so. i think that's something that we look at every year it's always a nice thing to have but it is supplemental to the core cyclical trend there. that remains intact. if anything, the consumer this year has proven to be a lot stronger than we thought he or she was coming into the year the question is with the economic slow doundown next yeao will the consumer react. net net, we think amazon from infrastructure play, from logistics play has the best defense mechanism to weather that kind of storm. >> where do you stand on ebay?

i know the company is looking to focus on payments and advertisi advertising build out e-commerce when you have traditional retailers like walmart and ta t target looking to grow e-commerce, can it grow from there? >> we have a hold rating on ebay they haven't been able to reaccelerate that growth we have been expecting for two years if anything, you look at the last two, three quarters, growth slowed in the face of increase marketing spent. it is hard for ebay to maintain its position the other thing is as you look forward, two, three, four, five years, ebay is still structurally challenged about being an omni channel platform it is first and foremost an online platform whereas amazon is an omni channel, and walmart from retailer to omni channel as well ebay is stuck in that internet,

and it is hard to get out of it. >> thank you for your thoughts look at the major averages session highs here s&p has gone green for the year at 2674. the dow shaved losses to minus 44 look at the top three rctapeenge data back in a minute rebekkah: opioids has taken everything and everyone i've ever loved away from me. everything. i blew my ankle out and i got prescribed pain pills by my doctor. if making my detox public is gonna help somebody i'm all for it. i just wish i would've had a warning. about medicare and 65, ysupplemental insurance. medicare is great, but it doesn't cover everything - only about 80% of your part b medicare costs,

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welcome back to "squawk alley. shares of united technologies being hit hard after the company announced they would split up businesses down almost 6% now chairman and ceo greg hayes stat down with "squawk on the street" crew earlier to talk about the decision take a listen. >> because it is the right thing to do. look, i mean we can go back and look at any one point in history, say the commercial business outperformed aero

business i would tell you, as i have spoken to all investors in the last year, there's almost unanimity that they would do better as separate businesses. >> we asked about trade rhetoric from the president and impact of tariffs on utx. >> tariffs benefit no one. we're going to spend $150 million in the coming year to pay for additional tariffs ultimately, tariffs become a tax on consumers we raised prices three times at carrier to cover tariff costs coming in. tariffs don't bring jobs back, tariffs don't accomplish what we are trying to accomplish >> i think it is probably why shares are trading down as much as they are, guys. first of all, laid out an 18 to 24 month time line in terms of the breakup, talking about 2020 to be finalized. when you look at everything else trading lower, materials, industrials, other trade

bellwethers, those u.s., china trade headlines i think are also making a dent here. >> for sure. also that limbo period before the separation what you do, you sign up, buy utx stock, you're going to get whether you want it or not an elevator company handed to you and kind of a building systems company and carrier. you might want that, you might not. on the way there, muddies up the story a bit. >> and talked about the costs, trying to set the bar high and come in under the way others have done in the past. 74 case studies they looked at in terms of spins to decide whether or not this should be done or needed to be done. >> i would note this is part of the bigger, broader, multi year trend we have seen in the industrial sector. companies looking to break apart, looking to simplify themselves, more pure play, spinoffs, ge has been in focus this year, honeywell, jacobs,

johnson controls, siemens. it is part of a bigger trend we have seen for quite some time. >> the pendulum swings back often, but takes years probably before it restarts again to reaggregate i guess. meantime, hong kong stock exchange on track to top the ipo market luring the biggest tech unicorns from u.s. exchanges. we have more on the increased competition. >> reporter: good morning. 2018 has been a banner year for hong kong ipos some of the biggest unicorns in the world happen to be chinese have chosen home exchanges over the nasdaq according to edith young, founder of 500 start yucatan peninsula -- startups. >> hong kong stock market staunlds china

i think better than the u.s. market even though alibaba has done well in the u.s. stock market. if you talk to a normal investor in the u.s., they never use those before >> after hong kong lost out on alibaba's blockbuster ipo years ago, it changed listing requirements, made it more appealing for chinese companies that wanted to issue dual class shares. >> i think hong kong is becoming a strong option for many tech ipos >> reporter: they expect hong kong to finish as the world's top market for new listings,

even as markets are hit by things like china's slowing economic growth and trade tensions between china and the u.s. that could mean two of the most anticipated and biggest ipos of next year could choose to list in hong kong over u.s. exchanges, further limiting u.s. investors' exposure to chinese company. guys, speaking of alibaba, i know this is a story you're watching, it reached to your side of the world. the people's daily, the newspaper of the communist party outing jack ma as a communist party member today which shouldn't come as a big surprise if it is true. what may be more surprising is that the newspaper listed other chinese tycoons like robin lee and honi ma as nonpartisan back to you. >> these listings are ones to watch, given the trade tensions.

do not miss snap chief strategy officer imran khan tomorrow first interview since leaving the company here on cnbc meantime, european markets are closing in a few moments seema mody joins us with today's action >> hey, morgan fresh comments on trade are sending european stocks lower. france, italy and spain down the euro falling to a session low against the dollar on reports that president trump could impose tariffs on eu auto imports as early as next week. trading at 1.12 against the u.s. dollar stocks on the move, european auto sector finishing the day off about 3%, 2.5% big german automakers, volkswagon, bmw, daimler all trading down on prospect of further auto tariffs, down 1 to 3% the brexit dispute hasn't gone

away british pound is under pressure today, uk prime minister theresa may calls on business leaders to help sell the brexit deal to the british public the pound trading at 1.27. this comes as president trump called the prime minister's brexit deal, quote, a great deal for britain, but did warn that pact could threaten a trade deal between the united states and the uk remember, parliament is slated to vote on the plan december 11. tomorrow, bank of england set to unveil results of the annual stress test, a challenging year for uk financials. all down 17 to 20% so far this year sticking with the uk, topps tiles, reporting decline in full year profits, adding it plans to increase stock levels to protect against potential supply chain disruptions related to exit from the european union

that stock closing down 1.4% >> thank you let's get to sue herera for a news update this morning hey, sue. >> good morning, carl. good morning, everyone here's what's happening. white house counselor kellyanne conway telling reporters the chaotic border clash on the u.s., mexico border sunday is an example why president trump's border wall needs to be built. >> well, thepresident has made clear he wants funding for his wall 5 billion was a great down payment, as witnessed by recent events, we need border security and need people to understand a legal way to come to the country. russian foreign minister sergei lavrov rejects foreign mediation in russia's standoff with ukraine, that over the russian seizure of ukranian ships. they're removing chick-fil-a from a survey asking what restaurants they want on campus.

it comes as a result of the perceived record to be in opposition to the lgbtx community. chick-fil-a says it has no policy of discrimination against any group. you're up to date. back downtown to you, morgan >> their chicken nuggets are so good sue herera, thank you. i am hungry. tomorrow, don't miss amazon ceo web services andy jassy. the cloud and jeff bezos and more dow is down 63

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shop online or find your store at 4-w-p.com. after surpassing $1 trillion in market cap, apple in danger of losing its place as america's biggest company in market value to microsoft >> it is a race, right the idea that apple could be at one point prohibitively the most valuable company in america. you go back to peaks, both of these, apple and microsoft, hit peak market values on october 3rd just this year at that point like you pointed out, apple was worth $1.1 trillion. microsoft was worth around $890 or so billion at that point. you pointed out it meant apple

shed aquarter of market value in that span meanwhile, microsoft has only lost 8 to 9%, depending how inter day trading goes the gap between the blue line which is apple and orange line which is microsoft meant that apple has fallen to 825 to $830 billion, depending on the tick by tick now. microsoft shares worth $822 billion because they have fallen by a lot less than microsoft has. as you can see, these two stocks going back five years have both been huge gainers in the technology run we have seen. but for right now, we're getting very close like you pointed out. that microsoft could surpass apple in america, something we haven't seen in years. >> a little bit of history.

>> going back to '89, it is something like 40 times apple. for more on these tech giants, bring in portfolio manager dan morgan, and senior research analyst, keith bachman they held up better than almost any other big tech stock market gets choppy, you can go from consumer staples. microsoft is a business staple is that all it has going for it or what else >> there are other issues, too you mention microsoft is focused on the enterprise, you look at facebook, google, amazon, and other companies, apple, they're more consumer based companies. also the regulatory front. i don't know how long you have been in the business

i am in the business since '87 in the '90s, microsoft was under scrutiny about domination of the desktop. there was word they would split the company and so forth, and we don't hear much on the regulatory front on microsoft. you look at facebook, google and other companies, they're facing regulatory issues. i think that's another big part of some success that microsoft is having in terms of maintaining in the choppy market >> keith, you know the stock is relatively richly priced you look at the competition, 20 times forward earnings, can it hold this multiple do you think people can successfully hide in the stock >> yes, i do i think microsoft offers durable growth it is primarily an enterprise play, but not exclusively. we think because it offers opportunity for double digit top line growth and double digit free cash flow growth, we think valuation can be supported and as time moves forward, microsoft stock can move higher from these

levels the way we think about microsoft is a good defensive play as well as offensive play, meaning if the tech tape continues to be choppy, we think microsoft can do well, or if indeed the tech market sentiment improves, we think microsoft will do well in that context also. >> dan, how about microsoft versus amazon, when you talk about cloud services >> morgan, it is interesting you think about the huge transition that microsoft made in the last five years, they've become one and two in the infrastructure and service space which competes with amazon's aws. they've done extremely well in the platform, number one in market share, competing with sales force and software as a space category it is interesting to see how this old line company like microsoft is able to do that the big issue with amazon, and we hold amazon as a percentage

of revenues, their cloud business is smaller than that of microsoft, even though from an operating profit margin it is substantial. 55%. i think it is a one, two race between azure and aws. it will be interesting to see how that plays out in the cloud area that's one of the most exciting dynamic spaces now in technology >> keith, i guess i'm looking for holes in the story when it comes to microsoft it seems as if the consensus is they're doing everything right on the capital structure side of things, still one of the top rated credits, buying back stock. what makes you worry about fundamental demand side of things or something else going on in the markets? >> more on the demand side tech investors are broadly concerned about slowing economic growth or recession. if we hit some of those head

winds during the course of cy 19 or 20, microsoft has a great business model but it is not immune i think a macro would be the primary concern at this point for microsoft. the second one perhaps is if spending, microsoft generates revenue from cloud and on premise side, if for whatever reason the on premise side started to slow at the expense of cloud, that could be a head wind to microsoft. i will say that has not happened microsoft participates in the hybrid cloud on both sides we think it has a strong hand in the tech space >> all right thanks to you. appreciate it. when we return, after a record breaking cyber monday, flexport ceo is with us, fast grower in the logistics space, talking trade, apple, amazon,

holiday asseon that's next. don't go anywhere.

down from threats to impose additional tariffs on imports from china beginning as early as next year, and this time apple iphones may be in the cross hairs. sending shock waves through the supply chain as the holiday season kicks off ryan peterson, founder and ceo,

thanks for joining us. >> my pleasure >> let's start with news of the day which is really trade. we have the g-20 meeting this week, now the possibility of more tariffs, higher tariffs on chinese imports. what are you seeing currently in terms of freight flows through the flexport network and how do you expect that to change as this continues to escalate to 2019 >> right now, we'reseeing getting ready for peak season. i think that's business as usual. companies are really struggling, moving as fast as they can to bring products in early, ahead of tariffs that are kicking in january 1st. so january 1st, tariffs for many, many products go up from 10% to 25% so any brand that can, any company that can is trying to get those goods in early to avoid that extra 15% duty.

>> we are seeing a pull forward in terms of inventory and trade activity and what's coming into the u.s. from china? >> yes, and that's a short term solution january 1st will be here before we know it the other thing going on in the background is brands and manufacturers, starting to move manufacturing if they can to southeast asia we have seen a surge out of vietnam, bangladesh, especially with fashion and some categories of consumer goods where the manufacturing capabilities exist in southeast asia. things like consumer electronics, they can't shift manufacturing easily >> what does it mean for apple if we see tariffs on those products >> well, it is not like they can do manufacturing for the iphone in other countries, it will be in china as far as i can tell. so what that means, they're stuck with a hard choice, if

indeed trump as he said yesterday does go through with higher tariffs that will hit the iphone, it hasn't happened yet, but if that happens, they have to make a choice do they pass that through to consumers in terms of higher prices for the phone or take a hit, make less profit. there are only two choices if they can't move manufacturing. we'll see what the decision is >> separating out if possible the demand that's being generated on a short term basis, what are you seeing in terms of general flow of activity as proxy for how the economy is are you seeing deceleration in areas? >> last year we saw record, china led the market, especially on air freight, chinese air freight increased by 13% last year it has come to a complete stall for china in particular, which led to basically global air freight volumes becoming flat.

in fact, for certain categories a real decline from china, hong kong, most hong kong air freight is trucker across the border, flown out of the hong kong airport. we're seeing some hit on chinese export volumes >> ryan, we talked to dhl about crude coming down, whether or not fuel surcharges could be eliminated or taken off. it is stickier on the way down than up. like the prime rate. >> very similar to the prime rate in freight. when prices go down, dhl and others have a tendency to keep some of that for themselves, profit margins go up when prices go down. >> the argument is well, with the way hedges are structured, you have to wait a couple of months, but would you expect surcharges to come off for people that transport goods? >> you should see that if fuel prices stay low, but it is funny

because fuel surcharges are quite sticky people tend to not pass it through as quickly on the way down >> and lastly before we let you go, what are you seeing in terms of peak season volume? we have some early readings on cyber monday and black friday showing record numbers again is that what you're finding to be the case? how do you expect this to shape up >> yes we're seeing record imports on ocean and air freight. volumes are strong we're seeing weakness on the china side for air freight now but overall, it is really there. the economy seems to be doing well, and i think the moment it comes in january 1st, right now, we see people pulling volumes forward ahead of the january 1st tariff raises. we'll find out what happens after that if the volumes continue, we can

be bullish if it tails off, we'll know it was a temporary surge. >> ryan peterson, thank you for joining us ceo of flexport. >> my pleasure, thank you very much. coming up, an update from facebook uk hearing. what implications are for mark zuckerberg first alook at today's laggard on the nasdaq 100. liberty global pulling up the rear this isn't just any moving day.

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i'm scott wapner a seesaw day for stocks. we're going to discuss what is driving today's moves and whether more tariff talk will cause even more selling. plus, should you check into our "call of the day"? one firm doubling down on marriott shares and "shark tank's" kevin o'leary with us today. one area of the market he finds most attractive. we're about seven minutes away we'll see you then >> we'll see you in seven, scott. meantime lawmakers from nine companies questioning facebook's head of policy over fake news. julia boorstin joins us with the latest >> reporter: carl, facebook ceo mark zuckerberg has been getting a lot of heat for not appearing before the international grand committee hearing on disinformation and fake ews. the committee tweeting nine countries, 24 official representatives, 447 million

people represented, one question -- where is mark zuckerberg in addition to britain, law makeers from canada, france, belgi belgium, brazil, ireland, latvia, argentina and singapore all questioned his fill-in who is also a member of the house of lords and he focused on the inevitability of regulation. >> one of the areas i'm working on right now is precisely to understand the kind of regulatory frame that's in everyone's interests we've accepted and he has said himself we accept this requires a regulatory framework and action by responsible companies like ours. it's the two in tandem >> reporter: he was grilled on topics ranging from the spread of fake news to hate speech to privacy concerns to the mishandling of foreign manipulation of elections. he was even questioned about facebook's inflated video metrics, one of canada's representatives accusing facebook of corporate fraud on a

massive scale. and he suggested breaking up the company. now throughout the hearing zuckerberg was repeatedly attacked for not attending, and we have also, of course, this all comes as big tech has increasingly been under fire consumer groups from seven european countries filed complaints against google for violating privacy laws after they were fined a record $5 billion for antitrust regulations this summer. back to you. >> julia, thank you. julia boorstin that's one to watch, guys, involving google consumer groups in seven countries claiming that google has violated the gdpr rules. we keep talking about regulation here in the u.s. and what is that going to look like but the eu has become sort of the leader globally in terms of deciding to crack down on data policies, et cetera >> and also questions as to whether over time it hurts at all -- who else will you go to has been the question. it makes the business more

complicated. >> the other key thing to watch is this digital tax that's been proposed in the eu that could have big ramifications >> there's a lot swirling in europe regarding tech, not just here the dow, wow, almost back to the flat line down 19 points

coming up tomorrow on "squawk alley" where is jon fortt today? find out wednesday when andy jassy joins the program. that is a big interview you will not want to miss it all taking place here on "squawk alley" at 11:00 a.m. eastern later today we have vanguard ceo tim buckley joining us on "closing bell" in a cnbc exclusive interview this afternoon at 3:00 p.m. eastern >> started the morning talking about the president's comments and how the markets have learned to fade them fairly well 18 hours, 16 hours after he talked about further tariffs, basically unchanged. >> the market was testing yesterday's bounds so far we're holding it. see the nasdaq 100 turning positive

semiconductors up 1% it shows you there may be a little something more behind that bounce from yesterday >> yeah, absolutely. the semis are notable because they started the day lower >> even apple is only down less than half a percent at this point. >> the s&p is higher again, too, by two points. >> we'll see what sales force says after the bell. let's get to the judge carl, thanks i'm scott wapner stocks are seesawing as more investors are jittery. it's noon. this is "the halftime report." on this eve of the key speech by fed chief powell, we're also daysaway from what could be a major turning point in the trade battle with china today how to prepare your money for the best and worst case scenarios. options traders are already making their bets. see how they're positioning themselves plus, advice from the man who runs the biggest mutual fund in the world.