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welcome to "squawk alley." i'm carl quintanilla morgan brennan has the morning off. what a morning it is too beginning with major tech earnings four big one, twitter, amazon, alphabet and intel and intel's ceo bob swan will sit down with us as we look at potential datacenter recovery, pcs and unbelievable characterization of what china was like last quarter. >> yeah, surprising mix, the pull in from people freaked out about tariffs actually had some benefit, sounds like, for the pc business, of course, there were some problems there as well but interesting stock action this morning. intel actually a bit in the red this morning it had been up as much as 4%, i believe, at the open and near there. up kit a bit afterhours and amd higher than intel which is an interesting dynamic that i'll want to dig into but, you know, beyond just intel, you have lots of

different earnings story, people surprised. google, alphabet had been in the doghouse compared to peers and a lot of people got surprised by these strong results >> for both cloud in focus even though the focus for amazon switched to top line revenue grete questions about cloud momentum falling below the 40% growth level for the first time. can it continue to fund all these expensive forays that amazon is doing? we know one day shipping is going to cost more than that $800 million initially estimated but as the cfo said they've been down this road before and so have investors which is maybe why you're seeing it only down 2% >> earlier today was on pace for the best session in a few years for alphabet and constant currency website growth up 150 basis points sequentially it's the third

largest going back four years. a week where we've heard reacceleration, best acceleration a number of years for several companies. >> and we did get that $8 billion annualized runway on google cloud business and wondered if you would get more granularity with thomas coming in from oracle with a new team in place reaching out. talked to him a couple of times. now we're starting to get metrics which will be important. >> some metrics. it's amazing we don't know if or how profitable google's cloud division is when we do have a lot of transparency into amazon's and more microsoft. josh lipton spoke with the cfo after earnings last night and joining us with more on that conversation josh >> so, deidre, he is taking a victory lap racing higher. net revenue jumping 21% so easing fears of slowing growth

still there are potential challenges too like increasing regulatory scrutiny. the company has been engaging with regulators saying we are already subject to oversight in a number of areas. this is not new. whether it's competition or copyright or privacy or intellectual property, we have been engaged with regulators around the globe for quite some time what could that mean for google? she says our focus on protecting the security of google users on the millions of existing huawei handsets in the u.s. and around the world today and going forward. it's still an open item. >> its cloud business on track to rake in more than $8 billion annually is the company going to do more ago which significants to build out that unit.

purat says we recognize they can be additive and open to them where they make sense but there is a lot we are doing organ organically and excited about the direction we are headed here president trump's tweet about google and his relationship with china. i did ask porat about peter theil's comments he reportedly said google should be investigated because it's allegedly working with the chinese military porat did not respond to his comment. back to you. >> and thank you, josh, of course, google's ceo has said that's not the case, them working with china's military. moving on julia boorstin spoke with 2wi9's cfo and joins us with pore on that julia. >> jon, ned seigel telling me the investments getting rid of spam and making it easier to use are paying off with user growth and showing that the service has more room to grow. >> our results are a great

reminder of how the whole world can benefit from twitter and the work is to help people find what they're looking for and remind them about events and topics whether sporting event vm or a political event in asia. people all over the world should care about we need to do a better job surfacing the things people are looking for. >> as for ongoing regulatory scrutiny, segal did not indicate they expected to hamper growth >> we're open to regulation where it makes sense gdpr is a great example of that. as a result of gdpr we worked hard to make our policies really clear and to remind people who use twitter that we view privacy as a basic human right >> both segal and jack dorsey

have focused on becoming more nimble and quickly can adapt to prevent manipulation on it guys, back over to you. >> julia, huge story on your beat today as well thanksment for more on alphabet, twitter, amazon and twitter, let's bring in dan niles who joins us on the phone. good to see you. >> good to see you. >> dan, on intel, the modem chip deal with apple and sort of your general view having had some information out of the quarter on what hardware looks like now. >> yeah, i mean i think when you look at intel, it's great that they sold that business off to apple but you have to remember why we're in this spot in the first place. intel bought that business a fair number of years ago, invested a ton and is now selling it for a billion dollars and it really shows that unfortunately intel just not particularly good at doing things outside of

microprocessors. don't forget they sold off mcafee which they had bought as well and figured that it didn't work out either and losing share to amd that's the fact that the stock is down off a beat in raise quarter that came in much better than people thought on revenues and margins. >> after getting some other names, has the needle changed in semis? i mean as more have come out and tried to call the bottom of the cycle. >> yeah, normally i would say, yes, great time to think about being bullish, the problem is is that you've got the semiconductor index, you know, up a lot this year already it's up about close to 40% and so it's very hard to say, oh, well, great. it's near the bottom but, you know, things are still pretty bad. and the stocks are near all-time record highs and the multiples and as you'd expect with estimates coming down and the stock is up 40% the multiples

have gone incredibly high. semis is one of those areas i have to admit i'm just sitting here scratching my head going, okay, if people want to keep buying nails when the estimates keep going lower, have at it it's not something i'm interested with stock, the index up 40% year to date. >> to close out on semis and intel specifically, that idea of losing share to amd isn't new, but intel's results are. so why down after results? >> well, i think it's what we just talked about. intel's stock, if you go back through its history, it always struggles when amd is gaining share. and i think the problem right now is amd is coming it a really low level, obviously it's 5% market share in the server market and if you go back to history they've gotten up to 25% before so when you're looking at that, it implies a lot of price pressure and, you know, you think about next year that's when things are really going to get a lot more competitive and

you've heard about intel supposedly cutting prices to try to compete with amd and i think that's the real issue between the two of them because it really is a duopoly obviously and so amd share has to come out going forward and that's why you're seeing this i'm definitely surprised intel stock is down today because relative to expectations which has been sort of the name of this earnings season, you know, i would argue the revenues and earnings are much better surprisingly investors are actually thinking forward and going, yeah, but my real problem is how much share is intel going to lose in their most profitable division servers going forward and that's why you see the stock reacting the way it is >> yousef, i want to turn to amazon with growth in its cloud business coming down a little bit, is it time that perhaps wall street should be questioning some of amazon's high, very high spending and

still unproven businesses such as groceries or this one day shiping? it seems like the street accepted that costs were going to be higher and profits lower. >> yeah, so what's impressed us yesterday with amazon is actually the reacceleration in both unit and recovery growth and a big part was this one day shipping which they had just introduced in the quarter. to your point about expenses, it did come out higher. they wouldn't quantify how much. initially they said 800 million. we think it came closer to 900 million. i think they're testing and learning themselves. but remember back in 2005 when they launched prime two-day shipping, it did have a negative impact on margins but then what it did over the following ten years it had dramatically expanded and reaccelerated

growth and that's what we'll probably see right now. >> youssef, are the challenges this time around different they're under far more regulatory scrutiny and have a number of challenges internationally. is it different than in 2005 when they began prime two-day shiping? >> i'm not sure it's that different. i think there's clearly more regulatory scrutiny but it's very hard to make a case that amazon is a monopoly if you look at their penetration of even online commerce, it's about 30%, 35% if you look at their penetration of retail in general, it's mid to single high digits so there are a whole number of other players, smaller players that are being very successful online, particularly in the dtc side so, yes, regulation, i think is something to keep an eye on but it has not gotten reflected in the numbers yet and we don't think it's going to get reflected in the numbers >> youssef, on alphabet, google,

how did so many get it wrong they've been in the doghouse for at least a quarter and here they come charging back reminding everybody what they're good at. >> well, we'll blame it on the lack of aclear explanation for what happened in q1 when their growth rate went from the low 20s, about 22% down to 19% and that's 300 basis points is a big, big drop for a company like google or alpha set, excuse me and i don't think management did a great job explaining why so linear thinkers as we all are we assume the rate of growth is going to continue to decelerate. some channel checks we did throughout the quarter implied about 100 basis point decel and lo and behold they nieced a nice reacceleration mobile search did it well and even desktop search which is 20 years old is also, you know, still growing. it was the large thirdest contributor to growth. that's basically what happened and then gcp at 8 billion, that was pretty impressive.

about 18 months ago it was at about 4 million. so over 18 months it grew at about 100% which tells you they're actually gaining a little bit of share from aws and from azure. >> i wonder if you think management's lack of wonder unwittingly created basically some relative value in tech over at alphabet? >> absolutely. i mean, i think, you know, i said this to you, i think when you had me on after they reported the prior quarter i hate investigating in black boxes and that that was the real problem. the business decelerated last quarter by -- from 22% to 19% revenue growth and the biggest issue it wasn't the fact it decelera decelerated. they didn't tell you why and didn't tell you all quarter and quite honestly we still don't know and so, you know, that really is the issue with google is that black box. now, the nice thing is they gave you more disclosure this quarter

and getting more shareholder friendly and that's the big positive out of the quarter. it disclosed the fact that you have their cloud business reaching a $2 billion quarter per run rate haven't given you disclosure on that for 18 months and gave you $25 billion stock repurchase so that's good and reminds me when apple started initiating their big buybacks and dividends way back when and the stock outperformed over the last year for apple with their big dividend increase and buyback even though they have the first negative preannouncement in over a decade so it tells you that that stuff is really important. >> youssef, i want to sneak one last one in on twitter and snap. these guys are both up after earnings and google and facebook are up after earnings. have we finally moved beyond the stage where they're being compared to their bigger rivals and they've sort of got a space

in air own right >> yeah, i think you're right. both twitter and snap which are hold rated stocks for us mostly on valuation, went through a period where they effectively had to justify their existence i don't think that's the case anymore. i think clearly snap is the best play to or the best place, social place to focus on the 13 to call it 34, even much more so than instagram i think twitter with the numbers they put out this morning showing resecret sell race in ndu or daily average users monetizable. the rate of growth there accelerated and so, you know, people are effectively getting to the realization that these two platforms, while they'll never rival a facebook in terms of size, they still are very valuable for advertisers and, you know, and indispensable for

their users. >> youssef, dan, a big day for those who lover to cover tech. thanks see you soon >> thank you coming up we've been talking bit. intel out with an earnings beat and optimistic guidance yet the stock still down the company also soing off the majority of its smartphone and modem business to apple. s.b swan joins u don't go anywhere. -driverless cars... -all ground personnel...

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shares of intel fractionally lower after an initial pop on an earnings beat and improved guidance and selling out the majority of its smartphone modem business to apple. joining us is intel's ceo bob swan bob, good morning. >> good morning, jon how are you? >> i'm doing well. i hope you are too so, i want to dig right in to what really surprised you in this quarter because you were talking about this data economy being strong despite head winds but we knew that already so was it the pull in on pcs because of the china headwinds that caused a bunch of that outperformance what specifically was it. >> a few things. first and foremost saw much stronger demand for our pc business and higher end high performance products which gave us a higher asp in the quarter

secondly our iot business continues to perform very strong third, datacenter was basically in line with kind of what we expected, 90 days ago. and, fourth, pricing in the memory market continued to be a little bit worse so take that altogether and we outperformed our expectations on a top line by $900 million. part of that was driven, we believe, jon, from a bit of a pull in from the second half to the first half in light of anxieties around incremental tariffs in china which as you know is a big market for us so all in all, strong quarter and sets us up well for raising our guide for the full year going into the second half. >> yes, and you also said you expect the cloudy hand to pick up in the second half after they've been sort of digesting a bunch of that capex they did earlier. i wonder how much of that is showing us a new collude cycle,

i mean certainly we saw microsoft with their capex projection for the next fiscal year significantly higher. i guess that's what you're benefiting from. what does the cloud cycle look like and how should investors factor that in >> well, cloud has been a bigger and bigger part of our business over the last several years as we've had very good momentum what we're dealing with right now is remember last year's growth for our cloud business was up 40% so what happens is the cloud players acquire then they digest so expectations coming into the year is the first half for cloud would be more of a digestion period and given their end demand continues to be relatively strong that then they would come back and start purchasing in the second half of the year that's kind of how we thought the year would set up. and that's our expectations as we go into the second half >> i do want to go back to pc demand because you guys mentioned that particularly in

commercial, it was strong and i wonder what you're seeing specifically driving commercial demand for pcs especially because there was sort of this narrative out there a couple of years back that lower performance was going to be required in the future because so much was happening through the web. >> you know, we've had a dramatic transformation of the company where pcs used to be 70% of the business, a relatively short period of time ago and to your point pc demand has come down for several years by roughly 5% to 6% a year. over the last couple of years, we've seen some real stabilization and we think it's a function of several things one, just continued good products getting out into the market that are being adopted. number two, we still are in the midst of the windows 10 refresh cycle. so we're seeing demand last year and this year to try to contemplate for that reset

cycle. so those two things high performance compute driving higher asps and the refresh cycle is what's been a fairly constant but strong commercial environment that's offset a more weaker consumer environment. >> hey, bob, it's deirdre i know you said the tariff threats actually helped sales this quarter but i wonder about the longer term do chinese companies like huawei ultimately become less dependent on u.s. chipmakers and not only that but do you believe they can create chips that could eventually eat away at your business >> well, first i would say we're somewhat encouraged that the two sides are going to sit down again next week as we understand, see how they can talk through how to get more normal global trade relations back so that's what we've been pushing for. we think that's important for industry overall it's very important for the

semiconductor industry in particular which is a big net exporter to china and it's really important for our business because china has been a very -- a big market for us for a long period of time. the challenge for us as we continue to grow is to generate the profits till we can reinvest in r&d and as we continue to reinvest in r&d we're confident even though global players get stronger that we will have the r&d, the products, the portfolio of solutions that's better than anybody else in the world, so the global trade environment, china is a big market. we want to continue to sell into that market and that gives us the horsepower to invest here domestically in terms of fads and r&d d and that's what keeps us ahead of the game. >> do you believe other chipmakers like huawei have the capability to make chips that are the gold standard that you and other american chipmakers make

>> we think over time that there's a lot of people that want to get into the chip market that's not really a new thing and we believe over time that they will have the ability to. for us the key in that increasingly competitive market in a data centric world where there's more and more demand for compute is that we continue to make the r&d expenditures to make sure that we stay ahead of the game when lots of players want to be in the market that we lead >> how relieved are you to have this modem business thing out of the way and where is the best place or where will be the best place to invest those proceeds >> well, first to the second part of your question we're very excited about the role that we will play in 5g. in particularly areas where we play a key technology inflection which is what we characterize as

the cloudification of the network where we think we can win and play a much bigger role in the success of our customers. for the 5g smartphone modem we didn't see the opportunity to get attractive returns for our investors so we're excited to really double down on network cloudifi kasie as a place where we have a right to win in the marketplace. >> bob, it occurs to me what apple is doing with smartphone modems is what you don't want the megascale players to do in cloud. they want to take that business and design a chip that's specifically for them. we're starting to see the cloud players do that. how do you keep them from doing it in such a way where you've got to sell off businesses to amazon or to microsoft ten years from now >> you know, john, it's the same

answer to deirdre's question which is how do we continue to invest in the r&d that keeps us ahead of the game in a world where we developed the technologies that have an impact on every aspect of commerce virtually. when you do that everybody wants to be a part of it our challenge, make sure we continue to invest in r&d that keeps us ahead of the game and along the way we have to be able to customize what it is that we do that meets our changing customers' demands and that's been a big change for our business over time, particularly with the cloud players is not just sell general purpose compute that works for us, but sell custom compute by leveraging our general purpose capabilities that makes their lives better and helps them grow their business that's really what we're focused on >> and finally, despite the beat and the raise, you know,

physical catt calendar year guide of a billion dollars higher than the street expected, the stock is down this morning so some people must have doubts about the future want to ask about competitiveness, process technology, you said that you're on track to launch seven than meter in 2021 that will be competitive with your rival's five nanometer what are the risks you see to that launch timing and have they gotten less or are they still the same than what you saw when you took this job a few months ago? >> yeah, well, first, jon, i would start with how we see the parke and the role that we play in the market because some of the challenges from our success in the past, we generated 90% market share, so there's a worry that when you have 90% market share, the prospects for growth aren't that significant. we see the world in a completely different way. we see our served market today

to be almost five times bigger than the cpu market that we participated in the fast we see a $300 billion tam. we're not just developing and selling cpus but developing and selling xpus with is a variety of architectures that allow us to play a bigger role and see ourselves with a relatively small market share with significant opportunities to grow the set of technologies and capabilities that we believe are unmatched in the industry. >> all right big quarter for intel. a beat and a raise, bob swan, ceo, thanks for joining us first on cnbc. >> thank you very much getting some breaking news out of washington. for that we go to ylan mui ylan. >> the department of justice now giving the green light to the $26 billion merger of t-mobile and sprint but forcing the companies to sell some assets as part of that deal.

now, under the agreement sprint is going to be required to sell its prepaid business to dish networks it also has to divest spectrum to dish as well and the two companies have to make at least 20,000 sell sites and hundreds of retail stores available to dish in addition dish will also be able to access t-mobile's network for seven years. now, assistant attorney general make con delrahim was briefing reporters and said without it it would harm competition and he said that the agreement sets up dish as a potentially disruptive force in wireless. five state ags have signed on to the agreement including nebraska, kansas, ohio, oklahoma and south dakota, but this merger is still facing pushback from a separate group of attorney generals, 13 state ags and the district of columbia have filed an ongoing lawsuit to block the merger and it's important to remember that the merger cannot be finalized until

that case is resolved. currently there's a trial date scheduled for october 7th but i would not be surprised if that gets delayed, but, guys, bottom line today, the merger between t-mobile and sprint clearing a major hurdle getting the doj's blessing but still roadblocks ahead. >> faber has been reporting on this since we were children. >> yeah, it's actually good to remember, karl, the deal itself was announced april 29th of 2018 it was the third try, if you recall, as well for these two companies to get together. and this time it appears they are getting awfully close to doing so we've been reporting on many of the details that were shared in that briefing that ylan attended in terms of what will be divested to dish this opportunity they hope to really create a viable competitor in the wireless market in the form of dish wireless, particularly in 5g

and, of course, the two companies from the outset from that first day in april of 2018 have made 5g the centerpiece of their argument as to why it would be pro-competitive and why they believe the deal should be allowed. it's always worth going back to the terms. it was 9.75 shares of sprint shares for each of t-mobile or 0.256 t-mobile shares for each share of sprint and that's where it stands, soft bank, longtime owner of sprint that, remember, under moss had tried to get a t-mobile deal done early on and failed and tried again and now we are here. will own about 27% of the combined company, but the management obviously is going to be t-mobile's management, john ledger initially, mike seivert will take over in the not too

distant future can they deliver and execute on the synergies they identified initially, for example, $43 billion net present value synergy number and what is dish's entrance into this market with the spectrum, boost mobile? what will it mean for competition overall for both t-mobile and sprint and for at&t and verizon given t-mobile/sprint has talked often about how it really was going to bring competition to those two >> i guess, david, that part of this is a question of is dish really going to be a viable smartphone-based wireless competitor i mean when they bought the spectrum a couple years back very few people expected them to actually be a full-fledged wireless carrier but now that seems to be the burden that they're taking on. >> yeah. and they will have to and, listen, they benefit from not having a legacy network and at the same time it will require a good amount of capital

this is 1.6 -- 1.4 billion being paid are to the boost business and another 3.6 billion for the spectrum but that won't take place for a number of years. >> we're getting ahead of ourselves. when you look at the stock price rise as well, ylan said it's a major milestone but there's still a major challenge ahead. the state ags. what do you think they want to see? does t-mobile and sprint need 0 offer more what might that be >> we're in somewhat uncharted territory and very rare to see the doj get a consent decree of this nature and still have states that are actually alleging it's going to be anti-competitive and so it's unusual in and of itself and what it means for their ability to actually prevail at trial if they even get that far is very much unclear you know, i did have an opportunity to speak with marcella claire. the longtime ceo of sprint

still executive chairman of the company and he is also a very senior executive at softbank we talked about a number of different things including whether or not he believed that dish would be a viable competitor in the wireless mark market this is what he had to say. >> you can see by the level of concessions we made in terms of given dish access to the new network. having them give access to basically disposing of 800 mega-hertz spectrum or some of our stores to some of our towers, two incredible brands, boost and virgin so i think wilk about the competitor and gets to start from a privileged position and he doesn't need to build legacy networks but go straight to 5g. >> the question is how viable and whether they'll bring new

money in and the speculation would they attract the likes of an amazon, perhaps, that wants to get a more robust wireless strategy somehow will they have a deep pocketed partner? will cable come in a lot of negotiation between deutsche telekom and the doj about this idea of, well, this mvno that we're sharing with them would that change if there was a change and control and they got some concessions from the doj but others the doj got but the key question is will dish really be a competitor? he says yes. others wonder whether that will be the case. i also did have an opportunity, deirdre, to ask him specifically about those state cases you raise and what they're going to do about it. an here's what mr. claure had to say about the states attorney generals that are still opposing the deal. >> i'm really hoping this doesn't turn into a political fight. that the state attorney generals are able to get this deal on how good this is going to be for

their state and their con fit wents, for the consumers and have a lot of faith on the state attorney generals that once they understand the concept degree and level of competition that will exist in the market they will sit down and reach an agreement with us. >> they are still as you say, they still need to get the approval as well, the public utility commission in california, that could be a little bit and then, of course, the states as ylan said october 2nd. maybe they get them to go along. the other key question is what will it mean once sprint and t-mobile are one in terms of if they really are able to move ahead with 5g the way they say they will, will they become a real competitor to cable and bring a broadband capacity into the home and a wireless fashion you will be able to replace the likes of our parent company or charter in terms of providing your broadband they certainly are focused on the rural areas in the country

but that's not where the money really s it's more in the urban areas and there are questions as to how quickly they'll do that mr. cl amount ure did say they have a very clear plan >> we've actually filed in the fcc a very clear plan that basically outlines how we plan to compete against cable we're going to have a lot of capacity when you're able to build this network in many cases we'll have eight times the current capacity and this is going to give us a capacity to compete in many places where there's very little competition and no better in-home solution to compete against cable. >> that's going to be a key question and key thing to watch over these years as potentially this moves much close story happening. >> for all the talk, in my quarter century in the business i've never seen so much competition among supposed monopolists where you've got wireless going into cable. you've got cable players going

into wireless. you've got speculation that, boy, it's going to take an amazon or a google to help dish fund the marketing they'll need to make it viable. it's something else. >> yeah, and the doj would say, listen, we did what we needed to do to ensure there is going to be competition in this market. also the idea if you stood back and said 4 is going to 3, that was a very tough construct and in fact the staff of the doj was not particularly favorable towards this potential transaction because of 4 going to 3 but they believe they have created a real fourth player and that you will continue to see competition for what arguably is the most important bill anybody pays in a given month. >> claure says dish whether be a competitor and that may be reason to be skeptical, right? of course, he's going to say that it's going to be his competitor soon enough does he want a strong one? >> how strong a competitor is deutsche telekom the controlling shareholder willing to accept for t-mobile some investors sort of stepping back and saying, i don't know

how investable this market will be if they are ereally a competitor will the consumer benefit, but will investors not because nobody can get a return on their invested capital it's a long way to go until anybody gets to europe where that's a real problem. but we will see over time whether, in fact, this was the right decision >> all right, got this one done. this chapter done. we'll move on. dave, thanks. joining us first on cnbc is fcc commissioner brendan carr. the fcc signaled it would sign off. commissioner, thanks for your time today. >> thanks for having me. >> you think at this stage and obviously with all the caveats that this is a win for wireless competition? >> yeah, the doj's announcement of clearing this transaction, that's a real significant win for u.s. leadership in 5g. it's been my top priority, a big priority for the trump administration and by accelerating 5g buildout through the deal 99% of americans are going to see 5g faster

that's a good day for u.s. leadership >> we just heard claure say he hopes the ag thing doesn't turn into a political fight will it? >> i think the fact that the fcc have cleared it significantly undermines that state ag case. it highlights the different focus. the state suits are focused very much on new york city, san francisco, and 5g in those markets and, look, regardless of this transaction, new york, san francisco, maybe even san jose will get 5g no matter what but we've been focused on, how do you get rural america to get 5g and that's why the acceleration of the buildout on this transaction makes it a good deal >> commissioner, is this still a good deal if dish never can really stand itself up as a viable fourth national competitor in wireless with a marketing dollars necessary to compete with the other three >> i've never had a significant

particular number in mind for nationwide providers and, yes, i think this is very much a good deal when you look at the underlying transaction, we talked especiallyier about home broadband the a lot of consumers feel like they have one or two choice for internet access and twining the assets of the two creates a third competitor of the same scope and scale of at&t and verizon. i think that's going to be a game changer for consumers in terms of high speed internet you. > make it sound so simple but there are, of course, 13 state ags plus the district of columbia blocking this merger. what do you think they want to see to let them think this is a good thing. >> i think now that the doj has spoken i think that's going to be a significant input into those state actions and, again, i think you have to look at this through the lens of what does it take to compete in a 5g world? what is going to take to compete over the next three to five years? it's a very different world in wireless than it was five years

ago and, again, when you combine the assets of sprint and t-mobile it's a type of disruptive competition that we wouldn't otherwise have if they stayed a stand-alone companies >> who do you think does better here, t-mobile/sprint or dish? >> well, i think the american people really are the ultimate winners whether you look at that underlying sprint/t-mobile interaction. rural america, 90% of the u.s. population is going to get 5g so we take the transaction as a whole regardless of the piece parts that you look at it's a real good win for the u.s. >> commissioner, what if somebody tries to buy dish now i mean, they are outfitted with quite a number of impressive asset, not just spectrum but brands all setting them up with supposedly everything they would need to be this fourth competitor are they somehow off limits now from an m & a perspective because of all we've been through? what's your feeling on that.

>> there are some restrictions on the ability of dish to immediately turn around and sell the spectrum and -- >> they got to wait three years, right? >> very specific buildout obligations now that frankly are unique in wireless and goes above and beyond the types of commitments buildout obligations that apply to all other competitors in this space. pretty unique commitments designed to encourage them to build out. >> commissioner, finally just talk a little about the risks of this deal not being done how does that affect the 5g progress here in the u.s.? >> well, look, i think there's a very big delta between the type of 5g build we get with this combined company and the type we would get without it both sprint and t-mobile separately announced 5g bills but it's in very few city, sprint in particular, when you combine the asset, the spectrum asset, the customers of the two companies, you get for the first time a truly nationwide path to 5g bills that delta is something

we have to keep in mind. >> all right, commissioner, thank you for helping us understand it even at this early stage. talk to you soon, i hope. >> thanks. >> brendan carr of the fcc. up next, wanda sports group going public at the nasdaq the ceo joins us on cnbc that's up next stay with us

earlier larry kudlow talked to us about the deficit >> the deficit in 19 and 20,

2019, 2020, i think is estimated about 4 1/2% of gdp. i think that's a manageable number and i don't think it's interfering. you take a look at the bond market, david. the ten-year is, what, hovering around 2% so there's no fear there's no fear and loathing with respect to all that >> on that dovish note to rick santelli and get "the santelli exchange." >> oh, my god, karl. somewhere out there stan is sighing and when i heard larry say that i took a step back. that's exactly the problem broken signals send inaccurate messages bad behavior, domestically and globally of rising debt to gdp, many countries at historic levels and falling interest rates, italy, greece, greece's ten-year is lower than ours. no fear and loathe something a

big problem when treasuries don't pick up on debt deficits and red ink in historic amounts of debt being placed on the books. you know, the yield curve and global debt buildup are related. it's the same issue. the fed up are related it's the same issue. the fed seems nervous about the inverted curve because the policies around the globe are piling in to disstory the market signal so if washington doesn't get the bad signal from the markets, they're pricing our future way too cheap with interest rates and when they do start to move up and they will at some point, servicing this debt is horrible. let's scratch our heads. why do we think the globe didn't knt get solid growth, even the u.s., the best of the best, isn't growing as fast as many think it should, it's because we're carrying this baggage, just because the market doesn't

see it, doesn't mean it isn't there. back to you. >> rick, thank you very much for that wanda's sports group going public at the nasdaq the company lowering its price range cutting from $500 million to just under $200 million wanda sports owns and operates brands like the ironman triathlon and is a major fifa sponsor. joining us now the ceo thank you for joining us ahead of the first trade what are you hoping to do with the money raised and are you s disappointed it was lower than what you initially hoped to raise? >> so as highlighted in the per speck us the, we were going to pay down debt and use rest to finance company's future growth. today is exciting day.

we look at the valuation of the company with the help of the advisers with a number of considerations, several factors, and however we focus on future growth we believe we have very -- you know, the set strategy to grow a business and we will -- able to execute that and deliver that and deliver long-term value for shareholders. >> i wonder why you decided to list here in the u.s., especially when your parent company is shutting assets in the u.s. did you consider hong kong did you consider shanghai's new exchange, the star >> although the wanda sports group is chinese ownership, we are actually global platform, global sports event company, we established in america, headquarter in tampa, usa. we have the headquarter

inzurich, and we have china presence so we are listed in nasdaq as the global capital kind of platform that's really kind of help us to fit well into our global presence and visibility as well. >> has that changed over the last year or so? especially as tensions rise in terms of trade talk between china and the u.s. and also looking at the performance of chinese i.p.o.s this year it hasn't been that great. >> in our business we believe our business is very good. we have, you know, the global platform and a strong growth strategy we are confident that we will able to deliver to the shareholders and confident we will perform quite well. >> i know you have a major real life sports presence but we are looking ahead this weekend to the fortnite world cup, 100

players dropping onto a fantasy island, fighting until one remains standing the stakes are huge, between them given out $30 million, what are your thoughts on esports and wanda sports going into this space. >> esports is a part of our gross strategy and we look at sports seriously, we think there's potential opportunity there. we are working with leagues, with federations, with the game owners from the ip owners and we really try to help, also understand how does this industry work and evolve and based on our existing platform we are -- feel confident we able to check into that and help shape that part of the growth and be benefit from the part of the growth >> last question for you did you or would you consider listing on shanghai's new index, its answer to the nasdaq, the star >> we have been looking at really nasdaq as a global platform from quite a beginning.

as i said earlier, we have a global platform and global presence so the global capital market listed here is really a good help of visibility in our international brands and our business and fits in had quite well >> thank you very much for being with us today as you await the opening trade: thank you thank you. have a good day. got some record highs on the s&p and the nasdaq 3022 on the s&p. "squawk alley" is back in three minutes.

"squawk alley. sometime one $100 billion tech fund isn't enough. unveiling a second vision fund expected to have around $108 billion in capital. include, apple, microsoft, standard charter, sovereign wealth fund. no mention of saudi arabian money. some of the first vision funds notable investments include the hottest names we've been talking about this year, uber as well as most of its competitors, door

dash, they've got just a handful of them. they have deployed nearly all of that, $100 billion from the first fund and the returns on that, recently 62% so you have players like apple and microsoft coming in this time expected to be lps, they've seen the results it's still early days and this is going to have major implications for the start up world for vcs, private money. >> 62% in this market is okay. uber didn't turn out as well as expected -- >> that depends on when you bought >> when they got in, it hasn't done as well as a lot of people expected and microsoft in the fund with an interesting deal that's going to have some of the funds' investments using azure perhaps. >> can they do that? say to the portfolio company you have to switch off aws, that's not the way cloud contracts work, is it?

>> if they make a suggestion, people listen. be interesting to see if we're in for a new generation of i.p.o.s off this new population. >> and what happens to them. the strategy is get in late stage, put a lot of money in, pump up the valuations we saw what it did to uber. >> absolutely. don't forget next week china and the fed. let's get to tyler and the half. thank you very much. go to the bullpen for the veteran right hander, scott wapner is off today. all a flutter over twitter easy as abc for alphabet. it is noon and this is "the halftime report" >> a tale of two fangs, alphabet soars but amazon stumbles. where these two go from here twitter flying high on strong results. the stock now up more than 40% this year. is it a buy from