good morning it is 8:00 a.m. at tesla headquarters in california 11:00 a.m. on wall street and "squawk alley" is live ♪

good thursday morning. welcome to "squawk alley". pretty good day here on the markets. s&p is up, dow super we'll start with tesla getting crushed in today's session after coming up short on q1 deliveries on pace for worst day since mid-january. elon musk's battle with the sec heads to court this afternoon. guys, good morning to all of you. what should we expect out of court today, phil? >> i think the most interesting thing will be just how hard the questions come from judge nathan how much does she say to elon musk's attorneys, seriously he signed an agreement with the sec. he openly mocks the sec. he did not live up to the term of the sec, according to the allegations or charges from the

sec, so if he's not going to live up to the agreement that he signed, what do i need to do to send a message to him or does she sit there and say you know what he didn't really mean it, it was a minor infraction we'll let him go >> how do you verbalize a robust defense? >> stepping back this is such a waste of time. elon musk for tesla, for tesla shareholders and it's elon musk's fault i'm sorry. got to be more disciplined about this i don't know how to said what he's accomplished in his life is beyond extraordinary it is not a knock on that to say, dude, you're running a huge public company that actually does restrain you a little bit in your communications and that's okay there are other models, you get more people involved and more senior chief financial officer, more people who can help run the company. this is just -- it's a statement

of what's going on at tesla. this company needs to take the next step and get much more disciplined all around >> the market has gone back and forth on this more or less being forgiving of this behavior based on what else is going on at the company. phil, short fall in deliveries forever. go back five years the bull case on tesla was half a million cars in 2020. that was the beacon. now it's kind of time to figure out if you're on a path to that. >> do you buy in to 360 to 400,000 deliveries this year i don't think they know what the demand is out there. investors have to ask themselves that question. they didn't deliver on expectations in the first quarter how do you have confidence they will manage 99,000 deliveries per quarter. where is that confidence coming from >> we're talking about this from

new york with a wall street perspective. is there a generation of disruptors out in california who want to see him win this >> possibly. but they already -- you know they already bought their model 3s so i don't think they will save him it's a real question like what happens if demand not there? what can they do you know, these cars, it takes a while to make new cars it takes -- there's going to be a whole bunch of new competition coming from big carmakers around the world in the electric space. i don't really know -- we've presumed for several years as long as they can make these cars people would buy them but they've been so lay it on it that they are running into all this competition i don't think we can presume that any more especially with federal subsidies running out. this other thing, around here everyone really does have a model 3. they are all over. i wonder if they are in the markets where they are big they

will become slightly less cool and people will move on to newer, all the newer electrics coming out >> he brings up a great point. tesla lit the fuse in terms of expectations when he came out, when they introduced the model 3 and said we got 450,000 reservation holders out there and every time on a conference call whether it was me or another journalist who brought up reservations he increasingly would say i don't want to talk about reservations you lit the fuse you said we had that demand out there. that's why the market expects the update there's never been a clear understanding since then how many people are interested in buying a tesla >> is there a contingent twin board that says we like this guy acting aggressively? >> you bet i've not talked to them personally but i know from talking from people people like larry ellison loves the fact

that elon musk is elon musk. let him run this company that's a legitimate argument in terms of what he's built here. you know what he's done at spacex this guy is a genius in many ways having said that as you mentioned, hen rue, you signed agreements when you run a publicly traded company you got to live by those rules >> larry ellison is a good cop to focus on. larry ellison is incredibly outspoken and incredibld competent managers running the company day-to-day who else works at tesla? management turns over all the time nobody knows it's a one man show. it's time if this company wants to be with us for the next 30 to 40 years to build a real management team under elon and elon can do his thing. >> to wrap all of thunder. we have a note from jpmorgan, tesla undermines elon musk's

case with the sec. how much of a risk that elon musk is removed as ceo >> he lost the chairmanship. that's possible. i think that this gets back to my first point what does judge nathan do? if she thinks he's in contempt of court let's sends a message to him what message do you send that you think he'll live up to he signed an agreement that he didn't live up to. therefore, the question is what do you do? do you strip him of the ceo title? i don't know that seems extreme but at the same time what your going to do? >> phil, thanks for setting us up we'll see you this afternoon let's move on the facebook stock is on a tear again up more than 6 puerto rico close to the highs for the year getting an upgrade by guggenheim. zuckerberg sat down with "good morning america" to talk about the pressure they are under.

>> you can say that cut any regulation around what someone says online is protected but that's clearly not right today the current laws around what is political advertising don't consider discussing issues to be political. it's not clear to me that we want a private company to be making that kind of a fundamental decision about what is political speech and how should that be regulated seems like there should be a more democratic process. >> so you've done such work helping us understand where we are in the life span of social media. where are we right now with this new chapter? >> you know, i generally agree with zuckerberg there. we do need some new way of thinking about these problems that go beyond these private companies and he's calling for, you know, laws, legislation in the united states, elsewhere, and sort of, you know, a law that works across the world about content and how these

companies should moderate it i think that's probably a good idea i think the unfortunate thing for facebook is they are holding it out as something that needs to happen before they act and, you know, this is a long slow process and, you know, there's different people -- people have different ideas in different parts of the world,000 regulate this it won't be easy next five year project to come up with some kind of laws. facebook can't delay over that time these problems are going to keep cropping up on its platform and i don't think they have a great way to solve them or address them just going see these flare ups all the time >> it's a thorny issue here and that's specifically speech, what constitutes political, what constitutes hate speech. i mean this is a very murky area here in the u.s., we have something called the constitution it gets even more complicated if you have a more global approach to this. what is the right path forward in terms of regulation

we have this conversation all the time versus the role facebook should and is playing right now >> i would suggest this was a brilliant move by facebook mark zuckerberg just punted. he just made it somebody else's responsibility facebook has been getting wailed on for years for not striking the right balance. i think it should be congress. congress can't make a decision on anything. that's another five years. we're waiting. we'll do whatever they want us to do. this gets at all the silicon valley companies with the exception of apple that struggle with freedom of speech, libertarian, we don't want to get involved in what people say. ultimately they have to get more involved and get rid of the crap on the latino forms. they have to behave the way media companies have behaved forever. >> to that point most likely the entrenched networks didn't mind when the fcc said here's the

words you can't say on television you need a fairness doctrine here's the rules for political advertising. is there a case against government, you know, having some kind of a boundary here and essentially telling these companies what they are trying to solve for >> the case against is we have no agreement like, you know, i think he's right. congress wouldn't come around to these kind of designates it's incredibly difficult and involves these huge partisan questions. republicans are blaming facebook for censoring their speech democrats want them to go after, you know, white nationalists these get to kind of the core issues of our politics and our democracy and i just don't think that there's any -- i don't see any way we can come to usable effective legislation on this which is why, i think, zuckerberg is punting. and so, you know, this leaves us in this -- at least facebook also i think in this no man's

land where people wanted to do more but were also a little bit uncomfortable were they doing too much and facebook wants lawmakers to do more it's a stagnant thing and i don't know if anyone has a way around this soon but, you know, we'll see the big test for this is what happens in the 2020 election and how well facebook performs in that basically, how involved it is in our politics from now on it will be a daily question that comes up every time there's some terrible thing in the news >> yeah. misinformation hate speech. violence as australian parliament has ruled on in recent hours as well finally, your latest column titled the incredible shrinking apple argues the age of innovation is over for apple and the company's focus is not selling better products to more people but selling more products to the same people are you calling for an end to hardware innovation at large >> no.

i mean i wish they were just doing more i was very disappointed when i saw, you know, the services event last week. it's fine. they are just doing what netflix is doing they are doing what other retailers are doing with credit cards. they are acting like a normal big company which is you kind of expect because they are a huge big company and trying to get more revenues from their existing users i think that all around them, as we were talking about with facebook, the internet is burning up and apple has a particular, you know, points of leverage on the internet ad business on privacy. it could really kind of make a big change for users by creating new ad free services, more privacy aware services, things like, you know, an imessage for android and other people on to apple's private system but they are not they are like mark zuckerberg punting on the big questions and

giving us more prestige tv which there was already a glut of that i was saddened by the whole thing. >> the flip side of this and we have put a number of investors and analysts come on our air maybe they are behind the ball at other times in history too in terms of some new innovations or new initiatives but don't ever count them out >> i think they are doing very well the problem is apple, everybody that has been followed by apple is ten years ago they invented the most profitable and successful and innovative and transformative product in the history of the world and we're all waiting for that every time they got on stage where is the next iphone the watch is doing pretty well the services are growing rapidly. yes they can continue to lower prices with the iphone, reach more of the market over time starting to do that in china and india. i think overall it's incredible how long they have been able to

sustain the iphone as an innovation here we are. stock is doing nicely. we give them more credit >> for sure. but the point about why aren't they trying to create a safer, better social network, a way to interact that would seem like a gift to the world but i'm not sure it's a business >> you know a gift to the world is not terrible for a company that has hundreds of billions of dollars sitting around they can lower the prices of their iphones. that would being a great too ithink they could come up with bigger things. they could spend a lot of money and try, to you know, create the future of the internet and that's what tim cook has been talking about. he fights against the kind of invasion of privacy from facebook, from google. his platform is kind of a key enabler of those if they really wanted to make huge difference they could they have the resources. they have the loyalty. they have like, the you know, the smarts they can do it

i just wish they would make biggbig bigger bets. >> thanks. good to see you again. when we return paypal co-founder max levchin is with us we have a big show of "squawk alley" don't go anywhere. dow is up 130 points the latest innovation from xfinity

isn't just a store. it's a save more with a new kind of wireless network store. it's a look what your wifi can do now store. a get your questions answered by awesome experts store. it's a now there's one store that connects your life like never before store. the xfinity store is here. and it's simple, easy, awesome. welcome back to "squawk alley"

cnbc confirming this morning amazon is planning a major space initiative to provide internet access across the globe, via nearly 3300 satellites providing broadband access space occupied, get it space by the likes of recent "squawk alley" guests like one web this is an area that's seen as a big opportunity in space elon musk's spacex is participating in this. so amazon is calling the project, calling this project hyper. they tell you project hype certificate a new initiative to launch a constellation of low-earth orbit satellites to bring broadband to underserved communities around the world what's interesting about this, guys, is it's amazon it's not blue origin which is jeff bezos other company and is the space start up

but one would imagine in general that when it does come time if they do get fcc approval and start launching satellites into space maybe that other entity blue origin would be involved. >> global internet access helps amazon's business. >> 100%. >> wasn't facebook going to do something like this a while back >> yes >> interesting stuff when we come back another ipo to get through. trade web makes its debut. ceo sits down with us after the opening.

european markets set to close in a few minutes >> reporter: strong session in china with the shanghai composite closing at the highest level in more than a year. eurozone largest economy witnessing a plunge in factory

orders the driver slowing demand from china. growth forecast for germany were also revised downwards a number of strategists pointing out that for u.s. companies a slow down in europe may be a bigger problem than china. u.s. earnings in europe hit $284 billion in 2018. that's up 7% from the year before while china earned around $13 billion. down 1% year-over-year that's according to boa merrill lynch. switch over to the banks, prospect of consolidation in european financials continues to get some attention unicredit is preparing a bid on commerzbank that signs for deutsche bank is seeing a push back commerzbank up 2.8%. carl, back to you. thank you very much. let's get to sue herera and get a news update. good morning

here's what's happening at this hour president trump tweeting the u.s. economy is very strong, despite what he says were quote unnecessary and destructive actions taken by the federal reserve. he says there's little or no inflation and optimism is very high at the white house this morning press secretary sarah huckabee sanders defending attorney general william barr's summary of robert mueller's report on his russia investigation. >> i have full confidence in the attorney general, in his assessment he's one of the most respected members of the law community in the country. and i think he's laid out very clearly what his assessment is and i have full confidence in that >> adidas and beyonce have announced a multi-layered partnership. beyonce will be a creative partner for the brand developing new signature footwear and apparel as well as relaunching her brand with adidas. they are excited to welcome beyonce to the family.

you're up to date. that's the news update this hour back downtown to "squawk alley". carl, back to you. when we come back merry christmas levchin's latest venture raising 300 million this week an ipo is coming there as well he'll join us shortly. the s&p is back in the red we're back in a minute i'm working to keep the fire going for another 150 years. ♪ to inspire confidence through style. ♪ i'm working to make connections of a different kind. ♪ i'm working for beauty that begins with nature. ♪ to treat every car like i treat mine. ♪ at adp we're designing a better way to work,

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rush is on in the meantime uber, slack, pinterest expected soon with funding activity heating up in the private markets as well. max levchin's latest venture firm raising new funding this week bringing the valuation to 3 billion. firm ceo max levchin joins us this morning in a cnbc exclusive. max, great to see you again. good morning to you. congratulations. >> thank you great to be here >> thereof hear more about what you're up to and how this new round influences your view on potential public life. >> obviously one step at a time. so at some point we'll likely

become a publicly traded company. today we're very happy to have plenty of gas in the tank to continue building. i'm wearing the t-shirt that suggests we have offices to open and folks to high ear tech platforms build. good day to start working again. >> what is this new round of money allow the firm to do >> more than anything. hiring building out our technology. we're tech first company and so majority of our investment really goes into technology and people that help us build it from that, of course, product and design ultimately the leverage in our business comes from our ability to build products from the ground up to disrupt things that have been built many decades ago. >> max, you're the ceo and co-founder of a firm but you have your hand in a number of

startups given. that we're facing this pipeline, this very large pipeline of potential tech unicorns going public this year how would you assess that, i guess, that, that situation right now and what it's going to mean for the start up community and silicon valley as a whole >> i think it's very healthy a lot of the companies that were rattled off right before the segment have been private for a long time. a fair amount of pent up demand for liquidity among shareholders and employees is a good thing. also, inquiring minds deserve to know how are these companies performing, who are the people making decisions in general putting these companies out into the public eye, under public scrutiny is a good thing there's burdens that come with being publicly traded. but i see that as a positive thing. i see that as the overall market

welcoming another infusion of hi-tech start ups. that's one of the most important drivers of our economy >> max, i'm interested in your take on apple's announcement credit card given that the firm is in the business of trying to kind of offer a better way for consumers to buy things on credit or over time. what's your take on exactly what they are offering and where it fits in to what the industry is doing and what ffirm might be doing. >> in general the trend towards finance is powerful and i can't stop being more and more excited about how quickly things are changing ten years ago when i started saying hey divert interest is evil and hidden fees should be eliminated and all these things should be dealt with by the market, people looked at me as if i was slightly crazy, maybe even more than slightly crazy.

now you hear large companies like goldman sachs and apple saying truth in communicating to consumers. the trend is extremely powerful. i'm excited to be at the forefront of it. the product itself has not launched as a product i can't comment on this but the overall direction and trend is awesome in the fact that apple is embracing the idea, is better than ever. we'll see exactly which consumers are appropriate. which consumers are great for products or ourselves. variety is good. i'm glad to see this development. >> the line between financial services and tech software really seems to be blurring increasingly and very quickly right now. what do you think banking and lending is going to look like and how consumers will be tapping into that five, ten years from now >> ten years ago literally when i was just starting to conceive

the idea of ffirm i read this study that more millennial consumers are imagining their bank being named google, aprilling, amazon, facebook or something along those lines than they think of existing financial brands at the time that seemed like a far fetched idea at this point i'm not sure any of the brands i just rattled off ultimately want to be financially regulated institutions but i think technology companies like ffirm are stepping into the opening where existing companies that make majority of their money by hiding the profit in fees that consumers don't expect will see real competition as a result technology stepping in one reason ffirm is as successful as we have been there's not too many companies in silicone valley feel excited about your job in finance as you would be about building a flying car or space rocket and this notion of honest finance is,

what's driving folks to join us, join these technology disruptors to come to work every day. ten years from now you'll see a lot more very large, very successful financials going into companies, maybe going public and so on because the opportunity is so large the market is so massive and the ability to excite young idealistic engineers is actually very real now. >> all right you just mentioned cars and space roberts. i want to shift gears before we let you go here. your former colleague paypal co-founder elon musk headed to court just up the street from here for later today in the face off with regulators over his use of twitter given the fact this is somebody you know personally, how do you think the business community, silicon valley are watching this situation unfold and do you think it establishes new parameters for how ceos,

founders yourself start applying social media to their communication strategies >> several things completely dependent on one another i'm uniquely unqualified to comment on anything related to social media regulation vis-a-vis any large company. i imagine that will get decided by people i imagine who know what they are doing. two, elon is brilliant and i wish him the best. he's an amazing human become and i'm proud to be his friend three, i think in general, as these companies, by that i mean technology companies enter the really important strategic one, when i say markets, we should expect more regulation, more straw tiny, more attention by people that make the rules it's not strange that we see more and more conflicts we're encountering not just spacex many companies are facing off. some of these things are healthy for the industry to find out what the new boundaries look

like and how to play within the rules. >> we might get a better picture of that later today. appreciate the time. congratulations again. we'll see you soon max levchin. >> thank you so much >> still to come trade web just opened for trading ceo joins us next. it's up 25%. 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,

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towards new highs. what happens when there actually is trade deal with china is there another leg up in the market or it is already in we'll debate that big question with facebook on the run again one firm sets a lofty price target on that stock is a new high really within reach? and we're back with an unusual activity in a big tech name. we'll see you at noon. scott, see you in a bit. let's get over to the cme and rick santelli. >> good morning. i hit another mike from td securities, michael hanson i found it fascinating they had a big fixed income conference. i want to dig deeper into and not necessarily from the same vantage point as all those fixed income investors and attendees at the conference. one of the big issues, of course, is this notion of the business cycle getting long in the tooth.

it's pretty hard to refute i'll refute it nonetheless there's a lot of issues that occurred right during and after the credit crisis that i think in many ways put the business expansion on hold or misinterpreted exactly when it started. i'll give the most obvious example. in technical analysis we have a thing called across the creek. what that means is should a market start to move down sharply, okay. the way the stock market did and then in march of '09 make this unbelievable recovery, well you can blame all that or at least point to it and say well that was all these wonderful programs we did you know, the recovery act and three quarters of a trillion plus that was spent on almost shovel ready stimulus. that's not true. markets especially the u.s. locomotive of an economy tend to bounce back on their own a lot of this shouldn't even be counted as part of the business

cycle and the notion a boot on business at a time when we're supposed to get big bounces after we have recessions that materialized i think there was a pause. and let's take another issue that was big in investors minds at this conference risk risk you need to worry about risk but everybody worries about it in the most obvious way we can't control the policies of china, europe or japan and bad decisions they can murder the economy. ben bernanke's words how recessions occur the other issue is maybe it will make the u.s. more inviting. finally the last this whole notion of complacency and goldilocks let's view that against a kroutd bus stop everybody is complacent. low interest rates parking money but should this and i'm referring to equity markets get any type of liftoff for a elevator of outlier reasons that bus stop is crowded. where do you think those riders are getting on the bus at much higher prices.

back to the "squawk alley" game. >> i want to show you a chart of trade web. ticker tw just began trading on the nasdaq a few moments ago surging more than 25%. the ceo is going to join us next stay with us check it out, our unlimited plan on the brand new samsung galaxy s10. oooh. premium entertainment on the infinity screen! people have seven different premium entertainment options to choose from. 'cause people are different. like how you cut the crust off of your sandwiches, and i eat them. and i'm pretty laid back and casual, and you... iron your jeans. i'm actually very happy you noticed that. cool... that's cool. at&t has the only unlimited plan that gives you your choice of top-tier entertainment. buy a new galaxy s10e, and get one free. more for your thing. that's our thing. -it's our confident forever plan. -welcome to our complete freedom plan. -it's all possible with a cfp professional. ♪ -find your certified financial planner™ professional at letsmakeaplan.org.

-fthe latestertified finainisn't just a store.tyonal it's a save more with a new kind of wireless network store. it's a look what your wifi can do now store. a get your questions answered by awesome experts store. it's a now there's one store that connects your life like never before store. the xfinity store is here. and it's simple, easy, awesome. welcome back to "squawk alley" trade web an online marketplace for financial trading making its public debut over at the nasdaq

this morning stocks up 25%. more than 25%. joining us now on our first on cnbc interview is lee olesky lee, thanks for joining us today. stocks at 25% right now after increasing size of proposed offering by more than a third. pricing those shares above the expected range clearly investors like what you have to offer today. what was your pitch coming in to these first trades today >> well, trade web has been a global leader in terms of innovating and operating in financial markets around the world. we started in the fixed income markets. we're actually the first online bond market back in the '90s we started trading on the internet we were the first firm to do that we had great innovation over all these years. >> now, trade web is to quote one report i saw an unusually mature company just mentioned starting in the

1990s. in terms of where we are in terms of automation, fix income trading what inning are we in and what does that mean in term of the trajectory for trade web? >> well, it varies depending on which market you're referring to around the world the market continues to evolve in different likes and different marketplaces so it's hard to generalize in various places i would say we're in the early to mid-innings with tremendous opportunity for more growth. >> now, obviously, depending on the segment of the fixed income market there's more or less kind of electronic trading or direct trader to trader investing how much bond trading do you think ultimately is going to go this route there was always a line that bonds are not quite like stocks. issuers have multiple different bonds. more of a buy and hold market. corporates, for example, how much of that activity do you

think ultimately will be electronic >> sure. well, we actually think most of the market will ultimately digitize it will get there in a variety of different ways. we're taking advantageof the massive network that trade web has around the world and we're connecting folks to trade. so you have so much innovation happening. but i think ultimately things will continue to push up in term of the percentage of markets around the world that are traded electronically >> i assume that that process has been moved along by the fact that because of regulatory and other reasons banks, investment banks don't do as much trading, don't make as much of a market in these areas you also i'm sure you've heard some of the concerns about the fact that look we have a lot of bonds in etfs, no buffers in between create some air pockets or disruptions down the road how does this market operate down the road? >> we have the whole financial

system, the eco system is adopting to technology over the last 20 years. we've been in business we continue to see an application of new technologies in different markets around the world. and that will continue it's not as if things just digitize and then we stop. right? so there's continued application of technology. it's not just all the exciting things that we're doing at trade web to innovate and grow our by but all the various market participants around the world are doing that and more. so that's what's kind of exciting for us it's not just we get to an electronic point and we're satisfied. we're always trying to do more in terms of what we can build. >> what does this mean for people i ask not just of the co-founder and ceo of trade web but given the fact that you are on the cftc advisory committee. as electronic -- as more trading goes digital, i mean we've

certainly seen it here in a couple block radius here on wall street how many physical trading floors have gone away. we talk about automation and the role it can play in displacing jobs seems wall street is plays in dg jobs, it seems ground zero for that how do you feel about it >> the financial sector is no different than the rest of the world. we are seeing technology making things more efficient and transparent. in some cases that increases activity but ultimately allowing folks to trade much more easily. we started in the '90s, the first firm to use the internet to connect people to trade bonds. we've seen that everybody luks occurring over these last 20 years and we expect it will continue to happen it's a positive. it creates new opportunities for businesses like tradeweb to continue to grow, allows for

efficiencies, reduction of costs and ultimately healthier market in an interesting marketplace. >> great to get your thoughts on this day as tradeweb goes public thank you for joining us. >> thank you dow hanging in there up 134, thanks in part to boeing "squawk alley" is back in less than three minutes global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow.

we have changed significantly how we run the company. we are dealing with a lot of major social issues, right, everything from policing harmful content to protecting the integrity of elections, to making sure data privacy controls are strong. the big journey we've been on over the last few years is really getting much more proactive about seeking out where there might be issues and making sure we're investing appropriately to handle them >> facebook ceo mark zuckerberg continuing his reassurance tour. but how much have they really changed? joining us now the author of

"zucked: waking up to the facebook catastrophe." mark, we wake up again to this your thoughts, have they done enough to propel the change? >> so i give mark a lot of credit for getting out and engaging on these topics this is in contrast to google who i think is guilty of the same issues and in some cases work but pretends it's not part of this story. i give mark credit there that said what he's doing is trying to frame the issue in ways that absolve facebook of problems it's been causing and essentially try to limit the regulatory impact. a teeny portion of the business that would not affect his business model this week we had four pieces of news already that really put the lie to mark's -- the whole program he's putting out there first, we had the incredible story on privacy that they were

asking new members of facebook for their email passwords. that's just blatantly inappropriate. secondly, we just found out that there was a cache of 540 million facebook identifications that were left exposed on amazon web services by one of the partners with which the facebook had traded user data that, again, completely inappropriate. that's almost ten times as big as cambridge analytica and then you had in india a different kind of story where they shut down 700 inauthentic pages but 98% of them were from the opposition party, which illustrates the tendency of platforms like facebook and google to align with the powerful over the powerless. lastly, and it just drives me crazy, facebook doing a deal with the deli telegraph in the

united kingdom to essentially pay to have favorable stories written about the company. this stuff is just this week and it's really hard to take mark seriously about how much they've changed with all of this brand-new stuff going on. >> and yet the stock is up another 2% today and -- >> well, of course. >> another analyst upgrade in general the rally this year, is it just that investors are shrugging this off because based on the financials they have seen, it would seem most users and advertisers more specifically are shrugging it off? >> morgan, we talk about this more frequently. amazon is the best advertising platform on earth. if you want to target an audience, you can't do better. i think investors in general have a short time on in, we're in a market as you pointed out in the prior segment with a lot of momentum in it. facebook was relatively speaking a lot cheaper than it's been so it doesn't surprise me the stock is doing well.

i'm talking long term societal issues and the fact you will see more regulation in this space. >> we certainly have in europe, roger, and now this story we mentionedbriefly in the hour about australia passing a law that would punish social media companies for violent posts, essentially hole them accountable. is that a new baseline for where regulation may be going, or is that extreme given the recent events in that part of the world? >> carl, i don't honestly know but the thing that's clear to me is we're going to see regulation that's different geography to geography. germany already said to facebook you cannot integrate your data sets they told google no street view and trying to minimize privacy invasions in germany incremental to what the eu is doing. obviously australia has the program they just announced. i believe new zealand is probably looking to do something after the horrible terrorism act there. and so i think what your seeing is that each geography will do its own thing and that will make

life more difficult and i think investors, these countries may not be individually big enough to move the stock yet but in aggregate it's going to make the lives of the managers of these companies a lot more complicated. >> roger, always great to get your thoughts on this. thank you again. >> you bet take care, morgan. >> zucked: waking up to the facebook catastrophe is available now. >> we continue to watch facebook shares, high for the year, $177.96. we're about a buck away from that and we said they continue to do better overall. >> facebook if you go back to last year, the highway what, about $220 you have some head room but it's a stubborn bid for the overall market and these kinds of stocks are emblematic of the fact people just want exposure to the big, obvious stuff >> a couple days now, it's hard-pressed to get far away from the flatline.

>> it has. >> is that because we're waiting buy nary outcomes? >> the jobs and that has to end. we will see where it ends up >> jobs report tomorrow and next week we get some of the earnings. >> and look for tesla in court obviously and president and vice premier. let's get to the judge carl, thanks, scott wapner we're on high watch, stocks trying to edge closer to new territory. is it time to believe a china deal is close? what would that really mean to the larally if one is? it's 12:00 noon and this is the halftime report. market mover, a pivotal day in the trade deal with the u.s. and china. big calls and big beck wall street weighs in on facebook and micron. the lyft debate is on. is there more than meets the eye? on