super majority control can be very dangerous so i would just urge people to be slow in that decision >> yeah. this has been a great hour to spend with you guys. there is so much going on here ied wonder what the happened scape will look like, hopefully, we come back six months from now and see if koslow is right, you guys are right maybe there is a longer runway tan people think out here. >> thanks for having us. >> that does it for the "halftime. "the exchange" begins now. >> thanks, scott welcome no "the exchange," everyone, i'm kelly evans. we have three breaking stories we're watching right now first on trade, china is expected to agree to buy more agricultural products as the two nations prepare next month we saw market reaction a few monlths ago. john bolton is out, the president saying he disagreed with many of his suggestion, crude among many things moving

on that news at this hour. on wall street, apple is kicking off its product event right now. jim dock is expected to tack the stage. we begin with today's markets and how all of these headlines are playing out, dom chu at the end of the telestraiter for us >> kelly, let's talk about putting visuals and numbers to the market events for the three big events you are talking about. ap am key part of that it's j you getting started now. you can see with the dow jones industrials average, on the south morning china post-headline, easing tension, the dow rose 100 points from those levels there right around the noon hour with the bolton news coming out, we lost 80 points, we are back up to session high, apple event kicking off. one of the places we are seeing a huge market impact is on oil prices as you can see with wti crude right here is when the bolton news came out. from the levels just before the bolton news to the bottom there right after crude wti lost 2%,

crude is certain lay focus back over to you let's get to that main story out of washington. john boltp out as national security adviser eamon javers is at the white house. what do we know? >> reporter: the president announced that over a tweet at a time when john bolton was scheduled to go to the press briefing room at 1:30 eastern time to talk to reporters. she no longer expected some official scenes playing out here in the west wing. let me sort of give you the color as this news broke, a number of us reporters walked up to the west wing outside the press secretary's office, a source close to bolton came up to talk to us. and that source offered one statement, which was that in the time that ambassador bolton has been national security adviser over the past 17 months, there have been no bad deals i asked the source, what do you mean by that are you suggesting there would

have been some bad deals made by the president if boltp hadn't been there, the source says you get to write the story, write whatever you want. as that was happening, stephanie grisham, the white house press secretary walked by, gave the source, really a tough look and said, oh, look, right outside my office the implication being that grisham not at all happy that a bolton person was talking to reporters, getting bolton's point of view where she was giving the president's point of view now we got the sort of contradictory question about who resigned exactly and when these resignations took place. john bolton texting nbc news saying i offered to resign last night. he, that is the president, never asked for it direct li or indirectly >> that is contradicted by what a white house press official says, saying that the president asked for john bolton's resignation last night it was delivered today we are going to hear from the secretary of state pompeo in

just a couple of minute here at the white house. we might be able to get some more details on this confusing situation when we do that sflchlt eamon, as you -- >> eamon, as you said, we were expecting to hear from john boltp, obviously, he's not gentleman to be taking part in that, i cannot imagine that. >> reporter: he's ntt building we are told and is not going to participate in the briefing. an hour before he was told, the white house sent out an alert saying he would be a part of that >> right is there speculation around that event and the time of his departure it has to do with the president inviting talks to taliban to catch david >> reporter: that's the instant pecksulation from eb in the -- speculation from everybody in the building i said, would the taliban invite to camp david the breaking point in the relationship between trump and bolton she said, no, no, no, there were many issues. so the white house staff is saying that the president had more than one problem with john bolton but they're not saying what

problems, if any, he had, beyond that so at this p we just don't know and this is going to evolve because you got now two different camps giving two different accounts of what happened here. >> eamon, one more thing on this dom mentioned the oil price plunged and the way rand paul responded to this, the implication, this makes the world, the u.s. administration less hawkish maybe we're less likely to take military action against other countries and raise aggression in that kind of manner is that warranted? who meet be on the short list for names to replace bolton? >> reporter: well, we don't know i think that analysis is correct. right, bolton was probably the most hawkish person inside this administration now this gives the administration room to sort of reset and coalesce more closely inclination, which is to get out of the world, not to be an interventionist in the world this is a president who wants to end wars, not continue them.

the afghanistan situation is sort of the pinnacle example of that where bolton had a different approach to that problem that donald trump, woes instinct is, let's get the boys home >> a remarkable series of event. it's not the last full year of it thank you very much. >> we will update you on that 1:30 event as warranted. meanwhile, tim cook has taken the stage at apple's big product event. julia boors stin is live outside cuperti cupertino. there is he taking the stage. >> reporter: he took the stage and said today's announcement will be about hardware and software services, they believe at apple if you give people wonderful tools, they will do wonderful things a big focus on services they started off the whole event with apple arcade, apple arcade folks on statement now talking about their unlimited subscription service. we have still awaiting a potential price for this service. we hear it is expected to cost about $5 a month but they are talking apple arcade right now

we are also awaiting more details on am tv plus. that's expected to launch sometime in november and is expected to cost about $10 a month. so we're watching for that and also, of course, apple's iphones will be in focus we're looking for three new different iphones and while we don't expect them to lock very different, we do anticipate they will have better camera features as well as potentially more colors we saw a little teaser in the opening sizzle reel that apple showed that we could see new apple iphone colors as well and new apple watches could also be unveiled here today with more health tracking features, especially slope track secretary expected to be in focus. then apple car is going to be a new service. we'll see if we get new traction >> for more on what investors can expect out of this, let's bring in ed lee and dan ives at

wedgebush security great to have you both here. no surprise that coke starting right in with services >> that tells you how much industry has changed >> service also, he usually starts off with let me give you stats, he blew past that no more stats. let's get to what we want to show you the services is the key part that's the narrative they have been wanting to push for a while. some context, though, i think their services business is closing in on 50 billion a year. compare that to disney, disney gen rates 60 or 64 million a year without revenue, without trying that hard, they are trying harder now, they're a massive media business >> that i have to outline a bigger more coherent strategy here >> two things julia mentioned, they're talking about right off the bat. he started with apple arcade, rumored to be around $5 a month and tv plus coming in november they had a big announcement

earlier this year. we're still waiting for that product to compete in a very competitive space. what's your price target on the company right now? >> 245 we think the services they've talked about right now 400 to 450 billion of the valuation is on services and this the a significant time for cook and cupertino, not just on the iphone side with 11, yet about a third of the install base right now are in a window upgrade opportunity. on the services, this is a drum roll into that, you got netflix, io coming out in november. >> right. >> so this for them in our opinion it's 100 million consumers you get the next three-to-four years. you need to have pricing >> the pricing is the key, though there was a report they were looking at $10 a month, that's how they price apple news, apple music. so at least it's in line with that the difference, though, is they've got four original shows they want to launch. >> pricing is key and content is key. when disney says it's launching a service we conceptually can visualize that and may they made

announce ps adding to the appeal this sounds like a paltry service so far how do they add the library of content? >> first it will be about distribution platform, cook will talk about that today. ultimately, they will have to dive into the deep end of the pool in terms of what i believe would be a significant acquisition on a content perspective. >> netflix. >> we talked about so many pictures, agp, 816, a24. >> big studios that are producing a lot of stuff really they're thinking bold, you can look at cvs i have a com -- via com i don't know, 18 to 4 months >> the speculation out there is rampant how the media landscape is about to be shifted dramatically who is going to ends up owning which players. the scale in order to compete with streaming needs to be massive. this is happening when elliot is going after at&t and hbo, that platform used to be the best sort of let's call it streaming

platform in town and now whether it's by delays or just a committed environment, have you, others have got an lead on them. i wonder about that asset as well >> hbo is a golden jewel i think right now you look at it for apple, there is a window of opportunity, you got 1.4 billion active device, 900 million active iphones, price is going to be key, is it 7.99 and 9.99, ultimately details right now it's not just about iphone 11 putting a fence around the install base, but service will be key. that's the one-two punch that they need to get across to consumers. >> all right well, lastly - >> where they're going to get that content it takes talent, money is the key thing. we talk about hbo, the crown jerusalem. they spend between 2 and 3 billion a year on content, original licensing apple is hitting close to 2 billion. >> it could be worse that.

>> netflix is looking at 15 billion in spend it takes money, apple's got plenty of it >> we'll see what they say, in terms of the hardware that portrait mode is a nice feature. we'll see if that moves the needle we appreciate it, ed and dan will be standing by monitoring this event we will check back as it continues. meanwhile, here's what else is coming up on "the exchange." >> ahead, rates have been dropping and the fed is expected to cut again this year with the sector in a bear market will this spell more trouble for the banks core they weather the storm? plus, can google's ad practices ased be as they say? we'll see the company that deals directly with them on behalf of clients. >> wework continues ahead of its potential ipo. this is "the exchange" on cnbc

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welcome back to "the exchange" let's check back in with julia boors stin, what's happening? >> reporter: they announced apple arcade the video service will launch september 13th and cost $4.99 a month that's a price point it will launch over 100 games and in 150 countries that's a subscription service.

so these are unlimited gaming for $5 a month right now, they're starting to talk about apple tv plus and the excitement there we are waiting a price tag there, we'll be back with more back over to you. >> so we're pretty much on target $4.99 per month for arcade the banks are brking out, this weekend's risingrates, they're 4.5% that trail is slightly behind energy those two haven't lead in a long time is the tide momenting? jamie dimon is speaking right now with the barclays financial banking conference he says trade concerns are hitting business confidence but the consumer is chugging along joining me now to talk more about the banks, jeffrey hart a principles at sandler o'neal and craig callahan is president of icahn advisers jeff, i'll start with you, could investors look at this breakout in the banks and think there

might be some lights to it >> i think what we're seeing is kind of this year's winners become this year's losers. especially financial some of it was overdo, the move on the ten year felt extreme and the banks followed suit. its nice to see some did get book here. i think what can it continue the question becomes can we get fundamental mackerel support behind it? i think banks were oversold. to start saying we will have a lot of upside, it's difficult at a ten year well below 2% >> craig you said people were overly obsessed with the impacts on the banks, just this morning, ubs downgraded wells fargo, a primary reason is they will have lower net interest over the next couple years. >> we are lowering our impacts for banks. some are growing at double digit paces if their earnings. we have lowered that, we see them growing, profitable interest margins have been quite

steady over the last five years so we still like banks and find good value there. >> why do you think they can make good money? do they offer the spread than the two year, ten year, from ex? >> that is pretty simple bankers are good at taking money in at one rate, marking it up 3 percentage points and loaning it out. they can do that in their sleep. they're good at it >> craig, have you had any thoughts about all of a sudden bond yields started creeping up, the tech motel item software took a hit we have financials in energy gathering some strength. do you have any advice for investors about what this mean, if anything? >> at the low, we saw bonds as very expensive and stocks as cheap and we still see that relationship so the two year or ten-year yield where it is given where inflation is just looks irrational to me >> wow and jeff, when it comes to the banks in particular, how cheap would you describe them?

>> well, they're a lot less cheap than they were last week they're pretty cheap look, the operating environment is tough it's not like banks will go at an outside evaluation. interest rates are looking good. i'm advising people you want to own in my mind the money center banks. the big ones that have scale to kind of compete if the environment does get more challenged and are less dependent than on interested income some of the market values and things will benefit the recession that i don't think is going to come, does not come someone else in this business can do well too. i think it's time to look at the big banks that have scale and are returning a lot of capital. >> what kind of valuation discount are they trading at >> well, i mean, you know, their two ways to look at it i think one would be where are banks trading relative to the market they're cheap, they're not crazy cheap. if you then take the step to some of the bank of americas, the groups that i'm talking about here, you are looking at a

multiple tool or discounted banks, which are trading a little below their historic spot in the market. i think it's a bit of a stock picker's markets for banks >> you like the groups, the j.p. -- ci citigroups, the jp morgans >> we see the bond market 20% below our fair market. we expect them to move over the next year and pretty much the same leadership we've seen for the last ten years. >> so that being - >> consumer discretionary, technology coming back, financials and industrials >> all right so you think tech and financials can co-exist. >> right >> it doesn't have to be one or the other. guy, thank you, appreciate it very much, craig callahan and jeffrey harte. we're getting more headlines. julia boors ttin what's happenig

now? >> reporter: tim dock says anyle plus will roll them out on the 1st and it could cost as much as $9.99, they will make it available starting november 1st, they will add more originals every month. they didn't say how many shows would kick it off. now let's take a listen to what tim cook had to say about it >> the first shows will be available on november 1st -- [ cheers ] >> and we'll be, thank you, we'll be adding more apple originals every month. and if apple tv plus will be available in over 100 countries at launch. and it is just $4.99 per month [ applause ] >> for your whole family >> reporter: now, in addition to that lower than expected $4.99 price tag, they announced when

you buy a ipad or apple tv, you will get one year of apple tv plus included for free just to put that $5 per month in context, that's netflix most popular plan and the cost of the disney plus and huh will you bundle, disney plus alone is, of course, less than that, $6.99 a month. it's notable and lower than exec 'ed. he is now talking about the ipad, we'll send it over to you, kelly. >> julia, i want to get it over to ed lee and dan ives with reaction that apple tv will be under $5 bucks a month, first year free with a new device. what what do you think >> it is a game changer. >> go ahead. >> i crew this as a show stopper. in fact $5, this is really them going after share in an offensive move i think it's something that really promotes share perspective that they can go after. they were aggressive, this is significant. >> speaking of the shares, you guys should see what's happening

with netflix shares, they're down about 3% on that announcement. >> that's not surprising, i'm with dan here, i remember when disney did their presentation around disney plus, they talked about the pricing at basically $7 a month, there was a gasp in the room, my god, it's so keep, we were used to what netflix is priced at in the $12 to $15 range. apple undercutting disney, granted, it's a much smaller allotment of originals coming into the fore. if you get it free for a year with a new device. it's a pretty aggressive marketing tactic clearly, it's a big money maker for them it's a way to get new subscribers in and services. >> there is disney shares down about 1 or 2% on this session. >> a major shot across the bow at eiger and netflix right here. >> how big a shot for netflix. >> it's significant. because this really you think about before, the only game if

town, have you eiger and disney come out in early november everyone viewed apple as background noise, $4.99 puts them front and center. this is significant with a 1.4 billion ios installed. >> i also think it's priced at a low figure as opposed to giving it away for free is more significant. >> i was going to ask you that. >> they're saying this is going to be a real business for us >> that is also the aim here i think they really want it to be it's own thing and i think it's sort of a little akin to, slightly different what amazon does with amazon prime, you buy into the subscription, the video is free. i really want to charge you, we see value in the content that we're producing here, that we're originating. we're going to charge you for it >> as we know, apple has plenty of money they could offer this as a loss leader how important is this going to be they said they will give it away one year free with a new ipad, new iphone, device, will that

move the need until terms of creating demand? >> i certainly think if anyone is on the fence? should i get this or not i get a year of apple tv for free it might tip people over that way, the real play is it's $5 a month, why not it's cheaper than a cup of coffee, i can handle it. >> as long as they have a couple of good shows, dan. >> i say 100 million consumers next three years, that's in the goal post price with this pricing. >> thank you both very much. as we mentioned, netflix down about 2.5% on the pricing of apple tv, which will also be rolling out november 1st we just learned that from this event as well. let's check on the other movers, shares of ford are credit rating cut to junk status by moodies on a weaker cash flow and falk profit margins, ford has $14 become worth of debt outstanding. the shares are down almost 3% today. merck shares are on track for

the biggest percentage drop in two years. they're touching the lowest point, analysts noticing the pullback is a part of the broader market representation that's going on. another move today shares of dollar general are lower on the downgrade to market performance at bernstein, this on valuation concerns. what they say are possible limits on longer term limits growth due to a lack of expansion, the shares giving us about 2% in this session now over to sue herrera for the cnbc news update >> hello, everyone, here's what's happening at this hour. the trump administration wants to overhaul the housing finance system it includes almost 50 changes to the current finance system, which would reduce in part the role of the federal government >> treasury's reform plan takes great care to preserve what works in the system. each of the treasury's recommended reforms is incremental, realistic and balanced >> a school bus driver is dead and seven children injured following an accident in mississippi.

a helicopter was sent to the area to air lift children to the hospital no word on what caused that crash. a 77-year-old british woman has sailed into the history books. jan sockrates has become the oldest to sail around the world solo and uni cysted. she -- unassisted. she spent 133 days at sea. hundreds gathered to welcome her back i'll send it back to you >> i didn't know socrates could be a last knight name. right. here's what's else ahead on "the exchange. >> coming up, wendy's bets big on breakfast again but analysts aren't sold on the idea wework passes the jumping bond market is this a bad sign ahead of its potential ipo? a big lift for uber in

california how kim kardashian helped another person get out of jail that's all ahead on "the exchange." to introducing products faster... to managing website inventory... and network bandwidth. giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence.

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exchange." we've had a lot of news out of apple including the pricing of apple tv news, let's get more from julia boorstin who is out at the event julia that's right they announced it will be larger 10.2 inch and it will cost the same as the last ipod, $2.99 for educational purposes and will ship september 30th. available for pre order starting now, talk about how this ipad is spoois twice as fast as the top selling pc, it will support the pencil and made out of recycled alluminum there from tim cook. right now, they are talking about the apple watch. so we expect to get the next generation apple watches we will be back with you with more details. >> i won't ask for more recycled alluminum, thanks.

let's check on a couple stories that should be on your radar, it's time for rapid fire. here is bill griffin, kate griffith, welcome everybody. first up, we must talk wendy's they are bringing back breakfast again. they will spend $20 million nationwide, investors aren't loving it. check this out the shares are down nearly 11% today they say it's the fifth time the company is trying to do breakfast, googen heim cut neutral to buy saying this rollout will hurt their earnings >> before you get the experts on this mcdonald's is going high-tech, burger king is experimenting with fake meat, the impossible burger and wendy's is going back to breakfast, a ten-year-old solution >> this is supposed to be good i have people that have fast food businesses say i'd like to have the breakfast only. there is so much you can charge for egg, what itself problem

>> one other part of the announcement is they are hiring 100,000 people they basically said it's a tight labor market good luck, trying to hire all of those people to your point about breakfast, the biggest fastfood cane said, yes, breakfast is good f. mcdonald's is saying that, wendy's has a lot of work to make this a success. they have interesting items, a chicken sandwich, biscuit, breakfast type frosty. >> is $20 million enough i was struck in a way by their hiring so many people they have to get this right. there has to be a huge market, the investment doesn't matter? >> it feels like apple is bringing back the ipod, the original one >> people love breakfast, high protein, most important meal of the day. >> you need to be innovating, not just rehashing something you did den years ago. >> why did they fail so many

times in the past? how come they can't get breakfast to work? >> i believe one of the issues is it took them a long time, in the past, bringing on more crew member, if they're able to find all these people and hire them, we'll help roll this out in terms of menu, creativity, some of the items look creative. wendy's is great at marketing. >> mark santoli mentioned, they rub on the streets all the time, they suspend all of their locations, so you have to take a left-hand turn to get into them, all i can say on my way the wendy's are on the right, the mcdonald's are on the left it makes a difference i do wonder about the real estate plan as well. it mats, moving right along, david neighborer is reporting the wework ipo is still ago with the road show set to kick off monday wework's largest shareholder soft bank is asking them to

shell every it because of concerns they issued jumping bonds. let's get the latest from leslie picker this morning it didn't look so good now with fabers reporting, is the road show still on tract >> it's unclear. to put it into perspective, they had a call last night i was told by two people, they had an all hands on deck meeting. wework and its advisers trying to nail down a plan. my understanding is that plan has not been nailed dun yet. there are a lot of things that they have been discussing, including changes to corporate governance to appease more investors. there were plans for a road show i was told there were discussions starting as soon as the end of this week, more likely it wouldn't take place until early next week as david had reported eventually, it can be puntd out further than that or off the table at all, soft bank, they've

put $10.5 billion into wework. soft bank i have been told doesn't want them to proceed with the ipo because it's looking look it will take place at a much lower valuation than where soft bank had put money in previously so if socht bank were to come in and potentially provide some sort of private financing to wework to postpone this further, that could be another dynamic at play which is why we are so much in flux right now. >> i wouldn't be surprised if this is a negotiating ploy on the wework folks to get soft bank to come back with more funding at this point. what do you think? examine. the fact that they don't, the plans for a dog and pony show are still so emore fossed -- emorpheoused at this point, they're trying to get softbank to only p come back with more money? >> it's certainly a good question, previously, softbank

wanted to come in and take control and if lps said actually no we will veto this plan, we do not want want you to take control of wework. the fact that they put $10.5 billion if privately the to own a 30% stake of wework. this ipo and concurrent private debt offering amounts to about $9 being so soft bank were going to try supplant that, they would be doubling down their investment in we work. which is something their investors previously balked at i think it's a hard bargain for soft bank at this time we wework is in a tough spot they need the cash >> this is such a controversial ipo. we'll check back with you soon we appreciate it next up, a possible blow to the gig economy. california state senators will vote on a bill that can force uber and lyft to reclassify contractors as employees in the state. the governor gavin newsom said he le foot the bill.

they spent a ballot initiative to exempt them from this proposed law, which in california we talked about how much uber and lyft shares have under performed. this is a major reason >> you are the expert on these topics. >> thank you, on two topics. >> if we're trying to help the plo i years or not or are they trying to get tax monies, we get the taxes directly from the companies, you don't have to worry about 1099s and under reporting. >> do you think the employees want it, whether or not we believe them is up to us they say these workers, they like the flexible. that's the whole point of the gigaeconomy. this undermines that >> i think we are messing a point, we are talking as though have you to be a contract employee or a staff employee, there could be a middle ground i think not all gig drivers are created equal. some of them this becomes their full-time job. they should become staff members. there are plenty of them,

though, this is when i got a moment from my regular job, or if i'm out of work you do this part time so i think there should be a distinction made on how these employees are treated based on how much time they do devote to the driving. >> i do wonder, though, how much, then what has that hurt the business models of these companies, having two classified drivers full time, part time what have you? does their availability poll go down what happens to the business >> they will definitely go up. >> you have to offer health insurance. >> part-time employees 20 hours, no benefits. >> are they scheduling the drivers? it opens up so many questions. i imagine they have to then. >> up to 20 hours, you can be part time, do what you want. then we knock you out at the end of the week. >> it up ends the model. >> againsh maybe not that model and others that depend on the gig economy for these workers. as they say, as goes california,

so goes the rest of the nation speaking of which, the state assembly passes a bill to let college athletes have endorsement money. they will allow them to be paid for the use of their name, image and likeness, it will go through state senate it faces fierce opposition and a pac 12 interest. >> that makes sense. >> they passed the senate, they made modifications these are being voted on like 90% yes in california, the governor says that they can expect him to sign it. the idea is name, image, likeness, nil. you can go and play and make all this side money. sell autographs, get endorsement deals. >> what happened with that whole legal battle there that he was trying because they were using his likeness. >> that was in a video ga im >> i understand. so we narrowly because it was just the video game, that's what he was after >> that was the video game and

there was other things, right now you are not allowed to do anything, even if the college doesn't pay you. the ncaa doesn't like this, the state is giving them four years before the rule is in play they are hoping nc za a doesn't change their rules >> has the ncaa been open at all to changing this >> i say, look, we're letting it look good for you. we give the scholarship now instead of it being tuition, it's the full cost of the tenant, they're saying we made it better, still within the limits we control. >> it will come as no surprise i'm old school on this i wish we were back in the days when all university athletes were amateurs and it remained that way. but the toothpaste is already out of the tube. >> you read articles from hundreds of years ago. they were complaining. >> i will pay them why not? >> okay. i'm naive in thinking they were amateurs at the time >> yes, the toothpaste is out of the tube now, it's already a

situation where universities are turning a profit using the likeness for marketing purposes and otherwise of these student athletes so they should get a piece of that. >> he did say that. >> so final word on this then, we should expect, do you think, even if california phases it in over four years, this could fundamentally change what athletes say >> ucla, stanford, they had big schools that people want to go to anyways, if you are an athlete, ki go to the west coast, get money. >> this will change recruiting big time in this happens >> leave it all there. we appreciate you. secretary pompeo and secretary mnuchin speaking at the white house moments ago, addressing the departure of national security adviser john bolton let's take a listen. ♪ >> so last night the president asked for ambassador bolton's resignation as i understand its, it was received this morning

>> was there a disagreement? >> yes, ma'am, in the back >> was it because of this disagreement >> i'll leave to the president to talk about the reasons he made the decision. but i would say this, the president's entitled to the staff that he wants at any moment, any staff person that works directly for the president of the united states he should have people he trusts and values and whose efforts and judgments benefit him in delivering american foreign policy as cabinet member mnuchin and i do every day, when the president makes a decision like this she well within his right to do so. >> can you describe your working relationship with john bolton as it was >> secretary of state pompeo addressed with john bolton the national security adviser who was supposed to be participatin in this at the white house, until the president asked for his resignation. oil price continue to drop

meantime, 50 attorneys general are launching an anti-trust probe into google focusing on search and advertising the ceo of an advertising platform that works with those companies, google, facebook, another tech target joins us with why both companies could be in the clear that's next. we want to draw your attention to shares of roku. this is one of the best performers in the market this year, now down 7.5% after apple announced the pricing of its new tv service at just 4.99 a month and free for a year if you buy a new device take a look at disney as well on session lows after the apple announcement is set up we'll have more headlines for you after this quick break ♪♪ ♪♪

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welcome back to "the exchange." we're getting more headlines, there are a lot of stock movers as a result of the news this afternoon. let's check in with julia boors

ten s ten /* tin -- boorstin, see what they've announced. >> reporter: off won't have to tap or flep your wrist to see what time it is and get key metrix including many more health tracking metrix the h & r battery life and built-in compass this series generation starts at 3.99, 4.99 if you want cellular as well. that's the same cost of the last generation, with new bells and whistles included. they announced a series 3 watch. two generations ago, those will start at 1.99. they introduced a range of new colors and designs, more customizable so they've just moved on, tim cook is back on stage. but i do want to know fitbit movedlower on this news. back over to you. >> banks around session low, dan ives, the apple analyst and ed lee of the "new york times" are standing by. gentleman, we've had a look at

roku shares down big time on the apple tv news. >> it seems like it's sort of this an amazon moment where you hear about amazon getting some space and all of a sudden the attendant issues around that start to drop. so i think with the roku dropping, that significantly shows you, there is a lot of confidence what apple is trying to do with the subscription business, the other key thing is they announced this launching at 100 countries simultaneously there is no waiting for rights for international rollouts they got 1.4 billion devices activated around the globe they will take advantage of that right away it's a signal they are super serious, if are you a stand alone in that space like roku is, you could be vulnerable. >> we talk about the watch and how successful the watch has been it doesn't get that much attention on wall street today's announcement, the always on feature and perhaps significantly 199 bucks for the

series 3 from a championshouple generations ago. >> it continues to be apple's world, everyone else is paying rent on terms of the watch side. this is them doubling down, being more aggressive, kind of what ed alluded to, you combine this with the service announcement of 4.99, you got whiteboards going up across roku, netflix, disney, it's an all hands on deck for competitors. >> i think the price point when we see the iphone is not the high end, how they price the low end phone. consumers are that much more conshoes, they see the the technology and what's available with the chinese competitors with samsung, so price will be that much more of a factor for people buying in. >> we will await that thank you guys, ed and dan meantime, google is facing a huge legal battle after attorneys general launched a probe. does google have a monopoly in this area. joining many know sui mark

douglas, the ceo of steelhouse, a self service advertising platform for companies and mark works closely with google and facebook how much of your clients client digital placement is going to the platforms? >> a lot, obviously. google being number one. facebook follows closely but there's also a lot of let's for the money, so those companies dominate the space >> but that issue of dominance is key not long ago, the fanatics ceo was on cnbc and said half of their spend goes to googal and half to facebook and i mean, that's everything. so i'm not saying that every company is like that, but is more than 75% going to these two platforms? >> a lot has, yes. it could be as high as 75% there's a big change occurring television streaming television is now becoming digital advertising too. that's happening very rapidly. and that third leg is going to start to take mark not going to, is starting to

take market share initially away from facebook. and eventually from google >> who does that benefit what players mostly? >> the ability to target on tv you're starting to see retailers that didn't previously do tv, but they are starting to do tv advertising. facebook launches a product and they give you streaming and all streaming platform with ad blocking >> you can pay for that right now. you can get a hulu membership and pay extra. but one way or another, the network is making money. so streaming ads can't be blocked. that's the point you're making

you're seeing people pay for that, but most consumers are not. they are just watching the ads >> do you think attorneys general are going after facebook and google when the market dominance will be lessened >> the thing about this is antitrust laws don't protect so it's hard to argue how a free service is in some way harming consume consumers. >> and i think that. amazon's cashless ghost stores rbt going to plan an inside look at how the company is missing on the retail

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welcome back to the exchange we have been following headlines from apple all hour where they have an event launching new products including the iphone.

julia has the latest >> that's right. unveiling the iphone 11. they haven't yet announced a price tag, but they say it will be available in six different colors, toughest ever smart phone in terms of the strength of the glass on top. and also talking extensively about the new capabilities around the camera. dual camera, the ability to take an extra ultrawide view. instead of zooming in, this is the opposite that will be able to zoom out without moving where you're standing. also talking about portrait lighting and night mode. back to you. >> thank you real quickly, dan, are you impressed by what you have heard on the phone >> i am. 350 million iphones creating an opportunity. that's what they are going after. significant launch ahead >> give me a a thumbs up or down >> i'll do a thumbs sideways i think it's impressive. they are clearly made the

upgrade cycle the way we expect with customers so i think that $350 million will be a nice target for them >> thank you for your time this hour it's been almost three years since amazon launched the first cashierless stores but not everything is going to plan information is out saying they forecast half a billion dollars in annual revenues from go stores that's up from 28 million last year for more i'm joined by the reporter behind the story. thank you for joining me and as we have spent the last hour highlighting, apple launching new products this is a reminder that amazon's new launch is around the physical stoerks you say they have not been going as well as they had hoped >> that's right. they had planned to have 56 amazon go stores so far, the go stores have been open to the public have the cashierless technology where you can scan an app, pick up

whatever you want and leave. the idea is is to eliminate checkout lines it hasn't been going as well as they had hoped they have 18 stores listed on their site identity nouned to the public some are restricted to employees. others are coming soon they hope to reach 56 by the end of this year so things are moving slower. >> how important for amazon's strategically? >> these stores really represent amazon's most ambitious effort to enter physical retail jeff bezos had said they will only get into physical retail when it has something special where it can offer a a different customer experience than the norm and amazon's opened a couple other stores most notably they bought the whole foods chain, but whole foods still for the most part, aside from the fact that amazon rolled out delivery, resembles a typical grocery store experience you're going and picking up what you want and waiting in line and amazon go, with the

cashierless experience, is much more experimental and ambitious. if successful could really up end physical retail compared to the way they changed e-commerce. >> as we're talking about the california legislation to undermine oouber and lyft businesses, is regulatory pushback the reason they haven't launched more quickly. they are going to require people to take cash >> that's right. there's a concern that if folks are unbanked, they might not have access to these stores. that could pose a problem if the stores expand. there are those kinds of concerns that they have and also one of the other problems that they have had in expanding is somewhat logistical. they have pretty specific requirements to launch a go store. if you walk in and look at the ceiling, there are cameras everywhere they need high ceilings. that's pointed out in the documents. it's something that does limit where they can expand. on top of that, they aren't quite sure because it's such an

experiment the sfoers have only been open to the public about a year and a half if there's enough of a destination or not when they opened in seattle, there were lines outside of people trying to get in. but all the rest of the stores f you open up in houston, are are people going to drive there or an attraction if you can whiz in and out. >> thanks very much for your reporting. >> thanks for having me. >> that does it for the exchange time for "power lunch" which starts right now >> it starts right now we'll see you back here in a minute welcome, everybody pumped up for what we have on pow"power lunch." a lot of apple apple's big event is underway. a lot happening there. the tech giant talking television, video games and new iphones and more we have full coverage as they unveil their products as that continues throughout the next ur