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♪ ♪ >> good tuesday morning. welcome to "squawk alley." i'm carl quintanilla here is jon fortt. morgan brennan is at the international astronautical congress more from morgan and amazon's jeff bezos in a moment >> we'll begin with wework softbank plans to take control of that company valuing it between 7.5 billion and $8 billion. a huge drop from where it was valued, also cutting adam newman's stake down to double digits good morning to our guests >> good morning.

>> mike, i know that you're f m familiar with softbank, softbank a big investor in uber why is softbank doing this with wework is this an existential moment for them are they at risk of this investment taking them under >> this is a real crisis for softba softbank the story the past few years is uber is a huge high point or low point, and wework and how they valued the company, but soft bank, a huge vision bank came flooding in giving companies that arguably shouldn't have been propped up more runway and a longer time to survive and vcs out here say this is distorting the economics of how

the values should work the companies that are supposed to die out are not dying out because they have so much money coming back into it. i think softbank, this is a humbling moment for softbank and they're trying to save their investment any way they can. >> cameron, channeling my financial malcolm x here, feels like chickens coming home to roost perhaps for softbank is this helpful for the market at least it's contained to softbank, wework and the landlords involved it's not the broader market and it could have been this is a case where you have a major investor with their flagship deal coming in to make sure they save their investment. it may be 8 billion or 9 billion versus 47 billion. the 47 billion was a false number it's not the market as a whole supply and demand saying the company is worth that amount if the company is still solvent and goes forward, it's great for the market and other startups in

the real estate and on-demand space. >> given how expensive it is turning out to be to under wiwid voting structures, can we safely say that pendulum has swung as far as it can swing? >> i think so. the excessive power put in a small handful of employees or ceos will probably swing the other way. >> mike, we'll see what softbank thinks about that. >> i've been beating this drum since uber i thought the peak of it was uber you guys and i were here two years ago. you know, we were talking about the ouster of travis kalanick. yet we don't seem to learn from that so i wonder, you know, part of the game has been keep the founders happy so we can invest in the company and now i do wonder if that pendulum has

swung the other way. at the same time, you know, maybe we'll be back in two years ousting another founder and marveling at how horrible things are. who knows. >> mike, what is the lesson here for employees for investors? if you look at travis kalanick, if you look at adam newman, these founders seem to have made out great. newman walking away with another billion plus while the company appears to crumble the wework employees, meanwhile, thought they were in for a great thing a few weeks ago. now they're questioning what they're in for. >> totally i think this era of the cult around founderers as and this fr worship is coming to an end. travis, i thought the high point -- i think newman exemplified this i think maybe earlier on with

the sergeis, larries, zuckerbergs of the world, there was a point to following people with true vision now you have people like newman who are in it for themselves getting 1$185 million consultin fees for winding down the company and firing a bunch of -- laying off a bunch of employees, which is really just a horrible joke and awful for all the employees involved so is the lesson -- are these people learning a lesson, or is he going to ride off into the sunset and invest in another round of companies i don't know maybe the end point is like lol nothing matters. >> yeah. well, we also want to get your take on facebook ahead of mark zuckerberg's testimony tomorrow on capitol hill. you also got facebook announcing new election security measures yesterday. cameron, they talked about some steps that they've taken to get inauthentic voices off of the platform showed some of what these folks have been posting, kind of

pretending they're locals when they're not. a whole range of political messages trying to inflame everybody and everything is this significant, you think, that facebook has taken these steps? have they shown enough that they're serious this time around is it too little too late? >> there's going to be heavy scrutiny and suspicion put on facebook regardless of what they do because of what turned out for the 2016 situation since then their somewhat defensive and cavalier approach to consumer data and privacy where they said we're on top of it, don't worry. there's still suspicion on the part of regulators it's not too little too late this is a step in the right direction. election years are massive booms because of campaigns the easiest thing to do is say we'll take no political ads. they would take a huge hit to

revenue. >> zuckerberg says it wouldn't be that much >> if that's the case, say no to all political ads, remove that from your system then you at least eliminate part of the problem >> i wonder what that would do to engagement? i don't know maybe some would -- >> it would be better, wouldn't it >> some might see it as a draw some might say i won't learn as much about politics. >> i mean, part of the dilemma, i think, for facebook is that the most engaging content on the platform seems to be the most inflammatory and insane stuff. so i think you can make an argument that, you know, there's -- it would be hard for them to sort of say let's tamp it down. i do think, to be fair to the company, you know, two, three years ago they had no idea any of this stuff was going on, they weren't looking for it actively. now they had so much heap from washington, from the press, from users, now they can't afford to be caught off guard in 2020.

so i do think they're sort of swinging the other way they have35,000 people working on security. that said we don't know what we don't know who knows what sort of weird manipulations will come around the 2020 election. >> mike, we want to congratulate you on the development of your showtime series based on your book will we be able to book you from here on out or do we have to talk to your people? >> it's hollywood mike now just get in touch with my people no no of course not. you guys are great thank you so much for always having me. >> always great to have you, mike great to have you as well, cameron. >> thank you. still to come, a big show on "squawk alley. also fcc chair ajit pai live from the mobile world congress and later, jon favreau will join us from the "vanity fair" summit in l.a. talking about the future of media, streaming, content, disney and more. dow up 51.

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jeff bezos making headlines about space. morgan brennan is there live >> jeff bezos took the stage to receive an award earlier this morning. here's the big news from his time on stage. he announced his other company, blue origin is partnering with some of the biggest companie

and most well-established companies in the space industry to bid on the nasa contract to quite literally land humans back on the surface of the moon blue origin will partner with lockheed martin, northrup grumman and draper to return americans to the surface of the moon in 2024 >> this is a national team for a national priority. we could -- i could not be more excited to be doing it with these partners this is the kind of thing it's so ambitious it needs to be done with partners. this is the only way to get back to the moon fast this time we're going back to the moon we're not going back to the moon to visit, we're going back to the moon to stay >> so, through this partnership, blue origin will be the prime contractor it's building the so-called

descent element. this is called blue moon behind me on display at iac there's a transition spacecraft that will take astronauts from a lunar orbiting space station called gateway, which is a separate competition, to a lower orbit near the moon's surface. there is an ascent vehicle that will return the astronauts to the gateway, that's what lockheed martin is working on. it's expected to be reusable draper will provide all of the flight avionics. the flight control systems what this actually means, why this is significant, you have one of the biggest names in the so-called new space era teaming up with some of the biggest, most established of the "old space names" for this contract this is a government competition closely watched. now, in terms of the actual value of this competition, we don't know the numbers yet nasa has been moving quickly on

this bids have to be submitted for this contract next friday, november 1st it's putting this team of heavyweights in competition with boeing, which is actually also here is presenting these little cards of the mockup of its lunar lander and possibly spacex, which is expected to potentially bid with its newest rocket that is under development, starship guys >> we love to watch musk versus bezos. those new developments in space. thanks for bringing those to us, morgan brennan >> up next, the nba season and the world series both kicking off tonight. we'll talk to super agent drew rosenhaus on the other side of this break the annual enrollment period is here. the time to choose your medicare coverage... begins october 15th and ends december 7th. so call unitedhealthcare and take advantage of a wide range of plans with a variety of benefits...

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nba season kicks off tonight amid controversy between the nba and china. mark cuban spoke on the issue

yesterday are. >> historically i haven't gone into the domestic policies of foreign countries. i can tell you go watch the movie "china hustle" that i green lit and produced look at the commentary i have on china and ipos and chinese stocks listing on the american exchanges. i've been very clear there are things i think they're doing wrong to disadvantage american citizens, particularly financially. it's not a matter of not willing to speak up against china. >> you're okay with what darrell morey said >> he can say whatever he wants. >> drew rosenhaus joins us from miami. good to have you back. >> good to be here. >> i don't think we had a chance to touch on what silver and the league and what everyone has been through and whether or not that gets the season off on the wrong foot >> i think once they start playing basketball it will get back to what's going on on the court and not off the court. i'm not sure the fan is really

too worried about what china thinks of the nba. i think they'll be focused on how many points their star players scored and who is winning and losing the games thankfully the games are here and we can put this controversy behind us. >> the fans may not care but the league cares about china and not upsetting whatever apple carts they built there what are they supposed to do stay silent on issues that other people think are worth speaking about? >> i do think it's very important that they support darrell morey and his right to express himself, his opinions about the freedoms and china and thing going on there i am glad the league did not discipline him at the same time the nfl is

disciplined with china there's a balancing act. you have to do the right thing as it relates to daryl morey and the ability to express yourself and say what you believe in. support human rights at the same time maintain poant government and important country that are big fans of the nba internationally. >> little slip of the tongue there. i think you might have mentioned the nfl, which leads to my question about players the nfl had its anthem controver controversy. nba has this hong kong/china thing. what do you tell players about how to decide what to speak up about and whatn not to? >> i think the best advice is not to talk about it it's a hot potato. i would tell my clients this is not necessarily something you want to dive into.

you know, leave this to the league, the nba, league office, and focus on things that are more pertinent to you because on one side it's a sensitive issue where you want to support morey. on the other side there's a revenue stream in china. but i leave it up to each individual client. if they have a strong opinion either way, that's their prognos prerogative. i'm not sure individual players want to jump into this minefield. that may be better for the owners and adam silver >> i think nba players have been conditioned to believe they have a little more freedom of speech relative to, say, other leagues until you find a situation that lebron found himself in. what was your reaction to that >> lebron is a great ambassador of the game. he has a lot at stake i would

assume as it relates to international basketball and, you know, he was on the fence. he was criticized by it for some that's an example of why i would recommend to my clients who are in the nba not necessarily to touch on this one. it might be best not to comment. >> right right. drew, on the one hand politics is everywhere. it's a hot button issue. on the other hand we're talking about sports a lot, live sports is still the biggest game in town, in media what do you think all of this does to the value of live sports as more of these bigger tech players like your amazons, facebooks, googles get in bidding wars over it >> i think amazon, netflix, google, all of these platforms, apple tv that are interested in professional sports

broadcasting, this is a whole new revenue stream, this is a whole new game and it's huge. it's gigantic. it's a game changer. make no mistake. if i'm broadcast television, abc, espn, nbc, cbs, i'm fox, there's a lot more competition now for professional sports. and, you know, the amazons, the netflix, apple tv and others, yahoo, google, this thing is blowing up let's face it t, the ratings fo professional sports are the highest in industry in broadcasting >> yeah. >> so everybody wants a piece of that >> yeah. finally, we had you on a few weeks ago to talk about antonio brown. viewers want to know if you think he'll play in the league

again this season. >> yes, i do yes, i do. i do expect antonio to play again this season. hopefully we will get the nfl investigation behind him in the near future and he can sign with a new team i said there's interest in him from teams that are looking for the investigation to conclude and i fully expect antonio to be playing this season. >> drew, i think it's one of the more serious conversations we've had given the news of the day, the issues at hand we always appreciate you coming on thank you so much. >> you bet it was intense >> drew rosenhaus. as we go to break, keep an eye on shares of under armour, kevin plank saying he will step down as ceo january 1st, and plank will transfer to executive chair and branch chief shares at session highs here

don't go away.

we will offer to the wireless customers and the fios customers exclusive with disney plus we will bring that one year for

fre free and of course this is part of our strategy we're extremely happy to partner with disney for that super content they have >> shares of netflix taking a leg lower this morning down by more than 3% on this news that disney plus will couple with verizon exclusively. joining us today is goldman's heath terry. this roundtrip it made going to 3.08 on the print and 2.67, you can forgive people for having whiplash what do you make of it >> we knew there would be an overhang going into the launch of disney plus people are concerned about the increase in competition from the streaming side what we think it misses is the other side of things how are consumers spending over 85% of their media consumption time traditional television ratings are down 16% year on year

that's accelerated every year for the past five years. you look at the amount of content spending going into traditional television that's declining significantly you look at the scripted television being produced there. so we're missing the big picture here because it really doesn't matter how much money is going into disney plus or hbo max, the amount coming out of that 85% is a much bigger opportunity than the drip that is going in from the top from these streaming services >> investors have certain growth expectations on top of that. i wonder how much of this verizon disney story is about rebundling >> yeah. >> it's about getting people in as quickly as possible and making it simple at the same time >> yeah. we're moving out of one bundle, the cable bundle and into another bundle, the wireless bundle in this case. i think it's important that's a 12-month offer it's about raising the price

you're paying or spending in your wireless bundle we'll see what the adoption rate for something like that looks like overall consumer spending is clearly moving more into this streaming on demand environment. ultimately that's a good thing for the provider that has the highest value to spend ratio, which is by far netflix. >> when you think of bundles, you use this term, this new bundle, how many channels can be in it? how many services? have you done how many households can juggle it at once >> it's going to be different for every household. you know, a high income household with a lot of family members will have multiple different offerings. a lower income household will look at the best value for what they're getting. again, that's going to be netflix in that kind of analysis >> given the number of choices, programming choices. >> absolutely. the math that we look at, the average netflix consumer spends

about 17 cents per hour of content consumed, compared with 26 cents for basic cable, which is the next best value offering out there. anything else that you look at, whether it's hbo or we'll see what disney looks like once we had time to see what consumption looks like you look at any other offering out there, it's considerably higher >> i know you're the lead internet analyst i have a question about wework's potential impact on the universe you cover. to what extent do you expect there to be an impact from this softbank takeover, valuation impacts to stocks recently ipo'd or stocks that have ipo'd? >> we cover a lot of companies that go public, uber, pinterest, obviously in our space we write frequently about the impact of public offerings on valuations and the internet space historically there's always been a heavily negative correlation between a lot of public

offerings, supply, and valuations in the space. asking public markets to absorb a lot of supply has a negative impact on valuations in the space. that's been the case for stocks this year. last time we saw this in 2015, to the extent this causes a break in the amount of equity coming to the market that's generally going to be a good thing for stocks it has been a good thing for stocks in the past >> finally back to netflix, just yesterday proposal for 2 billion more in notes. will the market be willing to shovel money their way >> the debt markets seem to be willing to that is the case with the debt offerings that they've done. you look at the operating cash flow coming in to this business, you look at the amount of ebita

that has come into the business, the ebita growth over the last few years and expect to see next year, there's clearly profits in the business there's a timing mismatch between developing content now and getting paid for it in the future i think the markets see that >> heath, great stuff. you have a great space >> a lot of fun. >> the internet, it's going to be big. let's head back down to washington where morgan brennan is u.p.s. just announced plans to deliver medical supplies and samples via drones morgan >> yes so u.p.s. made that news, there's other news going on here at this iac conference as well it's one of the biggest conferences of the year. as it's grown it's arguably the biggest conference of the year worldwide. quite a number of ceos and high-ranking officials have been taking the stage including the president and coo of spacex, gwen shotwell. here's what she had to say about working for spacex and elon

musk >> elon sets out these incredibly audacious goals people say you're not going to do it. you'll never get to orbit. you'll never get a real rocket to orbit that will be falcon 9 you will never get falcon heavy to orbit you will net get falcon to station and back you will never land a rocket i love when people say we can't do it it motivates my fantastic 6,500 employees go do that thing. >> spacex achieved a number of firsts and records it's continuing development of new programs as well including its next generation superpowerful rocket called starship on that shotwell discussing development there as well and saying that the window of opportunity to get starship moving was narrow and elon sets his strong will to get this done

asap saying that with falcon, falcon heavy and dragon that these are highly reliable machines to carry the most precious pay loads, meaning people. but with starship, they have the ability to go back to its roots to be more aggressive on timelines and take more risks because this company is developing it in-house she says failures in development are expected but they're blessed enough and smart enough to learn from those failures and they learned a lot. this is the next rocket coming from spacex. you heard it from me earlier on in the show. spacex has been raising capital. it's done three funding rounds since last december. some of that money presumably has been going to develop the of this new rocket. >> morgan, overall, aside from the big names backed by the big billionaires, how is the flow of capital into the space business right now? is it picking up is it staying stable going down

>> it is increasing and it's increasing dramatically. space angels, which is the investment company that is focused on space, investment firm focused on space that we have on the show sometimes, they put at a quarterly report, and the numbers have been growing significantly. a lot of that has been venture capital flowing into the area and flowing into some of these space startups whereas space has always been a capital intensive business, that is why you have seen so many billionaires like musk, like bezos funding their space ambitions, as the cost of launch is starting to go down now, you are starting to see more outside investors, nonbillionaires, if you will, nonspace billionaires putting money into the new companies as well. >> morgan, great stuff thank you. up next, fcc chairman ajit pai first on cnbc from mobile

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. after the break, you might have heard of some of his movies "ironman" "elf" actor, writer, producer jon favreau is with us. stay with us

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here's what's coming up at the top of the hour. four companies reporting today and others making stock moving news so the investment committee is breaking them down. plus who knew what and when? jonah jahn najarian on whether e was unusual activity on biogen and steve touzs is with us today on utx, the jeearnings, ge and more we're about 15 away. look forward to seeing all of you then >> scott, thanks >> whaback out to los angeles a

the "vanity fair" summit where julia boorstin has a very special guest. >> thanks so much. i'm joined by jon favreau, actor, writer, director, producer thank you for joining us you're about to go on stage with bob iger you will talk about the mandalorian, the centerpiece of the upcoming disney plus launch. you worked for movies, tv, netflix. how is it different to create a new show for this entirely new streaming service? >> it's exciting because it's "star wars" and "star wars" in a new medium there's been so many films, and with episode 9, the saga will be completed. it's been my whole childhood growing up with that because disney plus is this new platform, it gives us permission to tell "star wars" stories in a different way. i think as an audience member, i

love these serialized stories, this novelization of story telling where you're not conf e dpconfined to an hour and a hal two hours. over the course of a season you can explore. >> you are using new technology in "the mandalorian. it's similar to the technology you used in "the lion king." tell us about your big bet, you have a new company called golum. what's your goal in terms of how technology should change story telling. >> that marriage is when both can shine. the area that i understand probably in a deeper way than most people involved with either/or, because i've been at the nexus point of technology and story telling from "ironman" and "jungle book" and smaller films like "elf" i went through

a period of understanding stop animation, cgi, now we're pushing the limits of things in "lion king" and in "the mandalorian" because we can apply game engine to the film process. you can have more creative flexibilit flexibilit flexibility. >> by launching golum creations, is the idea to enable other filmmakers to do more with less because they're able to use technology and not have to go shoot in a desert somewhere? >> i think there's different applications for different stories. "lion king" there was no set in "the mandalorian" there was a real set with video walls in addition to traditional photography. each story has a different set of needs it was a way to focus on

technological innovation and trying to scale my production company in a way where i had a lot of different things that i was producing and scaling up content. that, to me, wasn't the more interesting side of things what was more interesting is drilling down on what technology could do i had relationships through these projects with people in the gaming field, in the visual effects vendors, and studios, and all of them are kind of dancing around the same set of problems so this gives me a way to be -- you know, to be somebody who stands for the cohesiveness of the community and also as i said, the nexus point between story telling and never letting technology lose sight of the fact in the application and entertainment that it has to serve story and create a vision. >> you have to have relationships with many streaming services you have "the mandalorian" on disney plus, you have a show on netflix. the "chef" show on netflix what is it like working with

these different streaming platforms? do you worry about subscription overload for fans? >> well, as far as subscription overload goes, that's going to, you know -- we're going to -- i think we're in a time of change. so you'll see there's a lot of people, personnel moving around from traditional studios, agencies, creatives moving from platform to platform, everything has to kind of settle in and i think we're -- so there's a great deal of uncertainty with where things will land but there are opportunities in that time of change where you can come forward with a vision and say i'd like do this there's a lot of people who are vying for content. so you're seeing a lot of passion projects come through. you see scorsese with the irishman i don't know if that would have been possible with that budget level and technology to tell that story in a more traditional model. you're seeing through platforms in netflix that happening.

for me "the mandalorian" i don't know if this would have been a good fit for abc or a big holaday release because it's a small scale story operating over time i think as a filmmaker, as a story teller i see tremendous opportunity and i agree we have to be vigilant to we don't let the technology or the changes drive our story telling culture. >> you mentioned scorsese. i have to ask you about your marvel movies. you revived the marvel universe with "ironman" and ironman 2, and executive producer for so many of these movies, a huge success for marvel but scorsese he along with francis ford coppola have been critics of marvel movies saying they're despicable, not cinema how do you respond to that >> these two guys are my heroes, they earned their right to

express their opinions i wouldn't be doing what i'm doing if they didn't carve the way. they served as a source of inspiration. you can go back to "swingers" that i was talking about and referencing, marty and i worked together they can express whatever opinion they like and we'll leave it at that >> for you, as navigate the path forward and work with "star wars" and marvel, how do you avoid these franchises coming up against fatigue? how did you make sure working with the folks at marvel there was not franchise fatigue? >> i think there's a lot of forces at work here as a filmmaker i see it from a different perspective, which is now for big movies with big budgets to help justify the theater, actually going to a movie theater and paying for that experience yushsou're delivering a much different product than when i began 20 years ago. you're selling to a global market these are stories that the budget demands that they perform on a global scale.

two-thirds of most box office returns are coming from nonnorth american markets it changes the calculus that studios have to consider when greenlighting a film you have the fluidity between platforms and there are films that would have been studio releases now being done for streaming services if you look at it from the perspective of what's available to the consumer, there's a much richer assortment and selection of stories and films and filmmakers who, you know, i'm doing, for example, a stop motion christmas special with the people who did the stop motion for elf i've been trying to do that since "elf." because of streaming service, because of netflix, i was able to get that done there are opportunities that are arising and i think that we're -- we sometimes get hung up on what we label it, which medium what we call film and television, what we see on our phones my kids are of the age where

they don't have any of these predetermined labels for how they watch their entertainment they can watch it on their phone, on their computer there are people i know who don't have cable or televisions, but yet they seem to be plugged into everything that's going on. i think we're in a time of great change. >> exciting time for the whole content business john favreau, thank you so much for joining us we look forward to seeing that clip and we'll send it back to you, jon, in the studio. >> julia, a creative an economic giant there, john favreau. not a lot like him around. great interview. meanwhile, 5g in focus at this year's mobile world congress in los angeles, california joining us from there is fcc chairman ajit pai. welcome. >> hey, it's great to be with you. >> well, i want to talk about

5g, of course. it's a huge force. before that, i want to talk about china. last week you tweeted, if this is how china is willing to use its leverage over basketball, referring to this hong kong/nba controversy, e-sports and flag emojis, imagine what could happen if we let chinese company equipment into america's 5g networks is this really either shifting or underscoring your position on china and 5g this whole nba controversy and how? >> well, i do think that the security of our telecom networks is paramount, as we emerge into a 5g environment the point i was making is that to the extent that the chinese government is willing to use its leverage over things like basketball and esports and flag emojis, it does raise concern when chinese manufacturing equipment goes into our networks and those are subjected to chinese laws which requires any manufacturer to comply with a request from the intelligence services i was raising the point we need to be careful about what equipment and services go into

our networks we need to use trusted vendors and as the networks are interconnected with other networks around the world we need our allies to understand our concern as well. >> yeah. speaking of u.s. 5g, you've got auction 103 coming up in just a bit. it's going to make more spectrum available than any auction in american history, 3400 megahertz of spectrum. this is high band. fixed wireless broadband is the expected use of a lot of this. at&t, sprint, mobile, u.s., verizon, dish, all participating. what does success look like for this is it the winners really launching wireless broadband sthafrsz competi wireless that competes with table and how long should that take >> it's part of our strategy which as you pointed out will be the large nest american history and we have auctions slated in the mid-band spectrum in the

next year. the goal is to put the building blocks of 5g innovation in place and let entrepreneurs figure out how best to use it it could be high bandwidth applications or low bandwidth like industrial iot. we don't know where the industry is going to go, but to borrow a line, 5g is going to be money. we don't know it exactly yet that's what we're trying to do is allow that innovation take place here on our shores >> so much beautiful spectrum in here so chairman, sprint/t mobile still going through the process here state of colorado dropped out of the multistate lawsuit mississippi dropped out already. does the market need sprint/t-mobile to go through to be successful on 5g or is that just extra >> well, i do think the consummation of this deal will be a major boost for the public interests. one commitment of that merger as you probably know is that the new company will deploy 5g, 50

mega bit per second service or greater to 9 the% of the american population within six years. that's a tremendous benefit and make sure that digital divide closes on the wireless side, no americans will be left behind when it comes to the digital revolution and also sprint's mid band spectrum assets with t-mobile's low band and high band assets will present a formidable competitor and so i actually think it's going to boost competition in many ways in addition to the entrants of dish i think the consummation of that deal is a good deal for the american consumer. >> i want to ask you about net neutrality i can never talk to you without talking about net neutrality still dealing with blowback on twitter over that. buzzfeed has done an investigation into the comments over net neutrality, pointing the finger at consulting operations that sent a flood of fake comments to the fcc opposing net neutrality. some of this can be traced back to money from the cable lobby, apparently including comcast,

our parent did the fcc make a mistake not taking these fake comments seriously enough when new york was raising concerns about it? what do you see as being the future of public comment in this era of so much fake communication? >> well, first, the overwhelming story coming out of the net neutrality discussion in 2017 is that we made the right decision. when we made that decision there were a lot of hysterical predictions, end of the internet as we know it, the internet will work one word at a time, speeds will slow down infrastructure investment was up $3 billion in 2018 speeds in the united states were up over 50% since we made our decision and judging from all the commentary on twitter no one is being held back from expressing their views with respect to the record, the u.s. court of appeals for the d.c. circuit reaffirmed that the fcc abided by the administrative procedure act including having substantial evidence for its decision we didn't rely on all the

extraneous commentary that came, for example, the 400,000 or so fake comments coming from reportedly from russia we relied on substantial evidence that was in our record. i'm glad that court in washington saw it our with way >> you bring up a good point, one that's definitely in the news, chairman, about say, for instance, facebook and its response with the -- the responsibility that comes with pairing political ads. how dangerous is it if we were to say that a platform like that could be the -- could be the voice as to whether or not an ad took place or not? >> that is one of the issues beyond our jurisdiction. we don't regulate companies like facebook there is clearly a lot of commentary on hill, on the campaign trail and the american public about what to do with that kind of situation it's something that we monitor, but we don't directly regulate it i can't express an opinion about what should be done in terms of

changing the law or applying the law. >> if you could address, my question about public comment, is there any value to it anymore when there's so much fraud going on does the fcc, do you have a view in how to actually give real people in the public an actual voice on these issues? >> oh, absolutely. on one hand we want to err on the side of openness and as many americans as possible to participate in our proceedings and on the other hand one of the things we're looking at is thou upgrade our system including a caption to verify that it is a legitimate individual filing that comment that's the balance we're trying to strike here, promoting public participation while preserving the integrity of the overall comment system that's something that regulators across the country will be struggling with in the time to come. >> indeed they will. fcc chairman ajit pai, coming to us from mobile world congress l.a., appreciate you being with us >> always happy to be on thanks for having me

his cultural i.q. on twitter, one of the great fcc chairmans in that regard meantime dow has been within a range. what can you say the drag from boeing, a little bit to a lesser extent today obviously a mixed picture overall. proctor and utx with nice earnings prints but mcdonald's and hasbro has been disappointments and let's get to the judge. >> carl, thanks. i'm scott wapner front and center the dow download, four components reporting, two other making stock moving news. it's 12:00 noon. this is the "halftime report." big beats, big misses. how to play the latest round of earnings from p&g, mcdonald's and more united tech not only beating but raising its outlook. the number one industrials analyst tells us why this is the stock to own in the group. under armour names a new ceo. the stock down 25% since its last earnings conference call two and a half months ago.

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