♪ ♪ good thursday morning. welcome to "squawk alley." i am carly fiorina with morgan brennan and jon fortt. it is risk on on the heels of the presidential tweet a rally as president trump says that they're getting close to a big deal with china they wanted and so do we that trade optimism is all over the place. bob pisani has more. >> how much is is the trade deal worth, about 40 points, we don't

know what kind of trade deal there is or if there is one, don't know if it will remove tariffs coming december 15th, or whether they'll reduce the level of tariffs of existing ones that are out there. that's kind of a big issue you can see the effect we were flat to slightly down. as the tweet came out here, within 15 minutes, we were up almost 40 points the old closing high on the s&p 500, 3153. we are comfortably in new closing territory if we stay anywhere in this area. and of course trade related names moved the most on this as always happens we saw nice moves in bank stocks, energy stocks, retailers, typical mover, materials, industrials, all of these are moving on trade related news what's more important, we're starting to see significant individual stock breakouts this is what i look for. obviously the top ten stocks of the s&p 500, maybe 22, 23% of market cap, you want broader

breakouts. besides microsoft and apple, usual bunch of semiconductors moving to the up side. some other once, broadcom on the up side. seeing a smattering of industrial stocks his new highs. stanley works. illinois tool, dover corp, these are deep global industrial names, particularly illinois tool works and dover, you want to see them breaking out most important thing is the breakout in banks. all of the big banks are hitting 52 week highs. quite a move up in the yield 8, 9 basis points in the ten year, and the curve itself you see the money center banks, jpmorgan, citigroup, a bunch of super regional, fifth third, morgan stanley, bank of america, goldman, sachs, 52 week highs. and if you get this move up in yields, people start talking

about the idea that maybe some of the inflation targets could be met as well all sort of things could happen. we still don't have the terms of any deal that's of course what we're waiting for now. back to you. >> yes, indeed, and it is not just us. perhaps cupertino waiting to see if the china deal is indeed close. apple shares have been on a tear, outperfeorming the s&p the impact of the 15% tariffs slated to go into effect sunday. wedbush, saying iphone cost could go up 150 bucks. credit suisse warns of trouble in china, iphone shipments down a second straight month, dipping as much as 35% in november with us at post nine, editor in chief, and mike murphy

good morning how big a deal is the potential of the tariffs going sunday for apple, they have some of the highest priced technology, also technology that people are willing to pay high prices for. >> regardless of the amount of personal outreach, my sense is people are waiting to see if the day will get saved trump tweeted it will be one way, five minutes, he will tweet the other way. there's tension for something deeply out of their control. i think over the past years, we have seen a huge amount of elasticity in iphone pricing you can set it at a thousand dollars, at $1500, people are still going to pay for it. whether $150, top end matters, i think it doesn't the low end, best selling models, 11 and 10, that's where sensitivity might lie, but

they're trying to shift revenue to services, buffer out the longer upgrade cycles. year over year sales, may have enough buffer to get through. >> if you're apple, you can't screw around with pricing off the cuff, can you? you have to eat the cost and your margins get effected. next week, tariffs could be off, then what, you change numbers like the gas station side? >> i am inclined to say they should eat the tariff increases. but if you look at what happened, they raised prices of mid tier to the highest they have been, and demand was soft i think there is to a degree elasticity, price for the devices. if that's anything to go off of, they have to keep people behind the devices if they're 10% more expensive than a year ago. >> that china number is the more important number that's not a price sensitivity that might be a straight nationalism, we're going to buy

chinese brands, america hates us, they banned huawei, we'll shift loyalty to our country's products apple can't market their way out of that problem, that's an enormous market for them that often effects total revenue. >> also a number we're not sure is right how much do we believe what credit suisse believes to be true. >> that's mart part of it that's why apple stopped giving out unit shipments, they're saying they're less important, shifting more revenue to services, that's part of the hope that the individual iphone sales don't matter as much as they used to >> i wonder how much it all effects the supply chain whether or not we get a trade deal or not. we had reports foxconn was building out capability for phones in india. i wonder if that's something the company moves forward with regardless. >> i think that's already

happening. you're seeing the indian government demand products are made there that's why they're building cheaper iphones there. you're seeing a lot of manufacturing move to other countries where it is a little cheaper, you're not necessarily seeing it move to the united states whether apple can move the highest and most complicated products out of china, i don't think they can do that yet i think that's a decade long process. >> michael, talking a lot about apple, one of the companies most able to absorb shocks like this, but think about somebody like i robot, very important christmas season, they got shellacked earlier on china related stuff how important is the deadline for the consumer electronics ecosystem that doesn't have a quarter trillion in the bank to smooth things out. >> i think you're totally right. at the end of the day, apple will define whatever happens,

the smaller players changing prices could have much impact on the business if they can't find new countries to start producing in quickly, they could be in real trouble. >> i think there's an opportunity for even smaller companies to eat margin. you look at the business model of every one of these companies, it is no longer selling a product and walking away, they sell you a product, enormous subsidy, perhaps below line, charging a service fee for some associated cloud service for years. amazon putting out echo products for like $3. >> make it sound like an opportunity to lose more money >> their business models are baked in at we're selling at cost or maybe below so you will pay us fees. >> that's an interesting point mike, the way i hear you describing that, it is a similar business model to what we have

seen play out for years and years in the industrial pays, companies like ge selling big machines and services being a lucrative piece. do you think we'll see this more and more in tech space >> i think for apple hard to convince people to buy your product when you're a no name company that only existed two years, to get trust enough to be part of their cloud enterprise i can see it with larger companies like amazon, microsoft, but for i robot, goe pro. >> i robot plus, we'll map the house, make sure it is clean every day. you can see it coming. my favorite device we covered was a tortilla robot, a pod subscription, they mail you pods for 20 bucks a month

>> elasticity in that market we need our tortillas. >> turned out they lost money. every gadget we cover is cheap with subscription product next to it. i think that pricing is more real than any individual tariff will effect a single transaction. >> if you take the credit suisse numbers, and looking at double digit declines, who is gaining share in china, especially at the high end hard to blee they're foregoing new phones completely. >> upgrade cycles are lengthening. a lot of chinese players, huawei, one plus, bbk, company that owns a lot of them, that's where a lot ofdollars could have gone are going. >> qualcomm talked about this, some consumers are waiting to release more advanced phones

ahead of that, could be an overall pull back. i also wonder if tariffs go into effect, see consumers spew more towards air pods, apple watches, lower cost stuff could help with a little boost on the high priced stocking stuffer end of things. >> hopefully everyone managed well enough to get through the next three weeks >> mike, thanks. when we come back, space unicorn rocket lab unveiling the first u.s. launch site in virginia we'll hear from the ceo next when "squawk alley" returns. woman: my reputation was trashed online. i felt completely helpless. my entire career and business were in jeopardy. i called reputation defender. vo: take control of your online reputation. get your free reputation report card at reputationdefender.com. find out your online reputation today

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wall street's top space analyst morgan stanley saying national security interest in space technology, just today rocket lab that competes with spacex and blue origin for a slice of the space, a very different part of the space business, unveiled the first launch site in the u.s i spoke with peter beck earlier. >> it has been an amazing year, flown six times, fourth most frequently flown vehicle in the

world. delivered 47 spacecraft to orbit. last mission was important flew anna ton must flight system that had a wonderfully successful test of first stage recovery re-enter first stage all the way down to splash down, which is the hard part and a milestone. proud of the team. >> why the shift in usability? >> for us it is not so much about changing the cost object, it is increasing launch frequency. reuse ability gives us to double production you get it back once, we can double production, that's the con strange thing f-- constrain thing for us. >> you're producing rockets one every 20 days or so, a fast pace for the industry in general. how does that speak to the

launch manifest and how many customers you signed up? >> we do our best. this is a long awaited capability small satellites had to live with kind of the uncertainty and not all of the great things ride share has to offer no longer do you have to be the second class citizen on a launch vehicle, you can get your own time line. it is a new shift in the industry >> i want to dig into that more. there's so much competition. maybe i should say prospective competition when it comes to small launch right now certainly seeing some companies try and fail, you have seen some of the big, more established names like spacex announcing their own ride share programs. are you thinking about competition? how do you maintain the lead >> yeah, i think we look at competition, it is incredibly difficult to get into orbit. once you get to orbit, it is

equally as difficult to ramp production up to regular cadence. there's a lot of emerging competition there, we'll wait to see how that establishes itself, but the market is certainly very busy, there are lots of opportunities. we're really trying to solve a problem that's been there for awhile as quickly as we can. >> i imagine you're working with the air force and that's a relationship that will expand today, given the fact the national defense authorization act is making its way through congress, is going to finally send up a space force, how much of a game changer for rocket lab and the sector as a whole? >> i think it is important for the nation what we are trying to do at rocket lab is provide responsible launch the point of the lc 2 complex is to literally have launch on

demand everything we have done here is to enable really rapid call up from launch and address concerns at a record pace, kind of been the holy grail for a very long time >> sitting down or talking to remotely peter beck, ceo of rocket lab as the company unveils its second launch site, first in the u.s., wallops island, virginia just earlier today, the way beck jokes about it that he is the nonbillionaire that's created a space company that's now gone to orbit. they've done ten missions, successful missions. this is a company that's been backed by venture capital, raised 288 million in funding. i asked him if he has more plans for more funding in the near term he said they don't have any immediate needs for capital but they did announce as well this

year a sideways craft program, photon spacecraft line, leaving the door open as that plays out in 2020, that may shift. i asked him if he is thinking about an ipo, what that plan could entail not really answering that question, basically saying again they don't have the need for capital now, they're well capitalized, but they'll see what happens as they continue to fulfill these programs and work on these new hardware initiatives, and take it from there. >> i associate space with marijuana. >> okay. >> there's some kind of government dependence, what are regulators going to do kind of thing. >> sure. >> i wonder about valuations on these things that seems to have been a problem that investors have with stocks how much is it worth, even if it is promising longer term, how much should you pay for it now are they similar or no >> i'm going to say no because

cannabis, it is commodity, right? and it is heavily, heavily regulated, but in the case of commercial space certainly they're building out this launch site at wallops island, in relationship to nasa, announced their first consumer from the launch site will be the air force, so there's that relationship there's so much private money going into development of space capabilities, it is not something the government is necessarily regulating the same way as cannabis. >> both are trying to get you high though. >> harder to reuse a rocket than grow some bud. we look at the market. off the highs, dow at 207, rallying on optimistic trade comments from the president. as for the curve, second largest steepening of twos, tens in the last six months. back in a moment sure, the content's easy. but then you have to connect, download, edit, reformat, output,

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european markets in the final minutes of trade seema mody joins us. >> the polls open in the uk, we are watching the uk currency, pound weaken as the latest election polls show boris johnson's conservative party is ahead. if he fails to win majority, the outcome could bring the brexit issue. rates left unchanged christine lagarde says quantitative easing and rates continue as long as necessary. investors used this meeting to better understand la guard's communication style to which she said i am neither a dove nor a hawk >> on the tool box, i am not going to rivet the bust, number one. policy decisions that were made stand. and we're reendorsed neither a dove nor a hawk. my ambition is to be this owl

that's often associated with a little bit of wisdom >> an owl. she warned against comparisons to mario draghi and overinterpreting her words. turkey announcing another interest rate cut. down from 14% to 12% morgan, back to you. >> thanks. i think turkey has to keep an eye out, ndaa pushing for more sanctions on that country. seema mody, thank you. sue herera has the news update. >> good morning, everyone. here's what's happening. the house judiciary committee reconvening, the economy expected to continue debating articles of impeachment against trump. they're expected to vote on the articles later today hundreds joining a demonstration in hong kong, six months since the protest movement began

the rally comes amid concerns the movement may be flagging as it enters a seventh month because the government shows no signs of making further concessions. firefighters in california are considering a fire truck that moves strictly off electricity. the vehicle would save taxpayers money on gas and repairs and if you're hitting the road, aaa says more than 115 million are expected to travel december 21st through january 1st, nearly 4% more than last year thursday and friday after christmas the busiest on the roads. you're up to date. back downtown to "squawk alley." carl, i will send it back to you. >> sue, thank you very much. when we come back, a first on cnbc interview with bill.com ceo. the price is 37 to 37.25

"squawk alley" back in a minute.

welcome back to "squawk alley. stocks hitting a record high president trump says they're getting very close to a trade deal we're going to bring you the ceo of bill.com in a few moments the bell is ringing. stock is trading $37 a share

ipo price at 22 a share. up 69, 70% now broader markets are higher trump making comments about being close to a trade deal with china, set to meet with top trade advisers at the white house later today. joining us, asset management multi asset strategist brian jack obje jacobson good morning brian, record highs for major averages today possibility again that we could get a trade deal how much hinges on this? >> i believe the market is telling us that quite a bit of these new highs we have been seeing for the s&p 500 and broader markets in general are contingent on a trade deal getting done as the chatter around a trade deal, this big deal getting completed has increased, you've seen the market move higher.

we on my team believe a lot of runup hasn't solely been due to the trade deal chatter, but improvement in sentiment is certainly in our minds due to the trade deal talk, but there are decent fundamentals. for my team, we're a little bit bullish on equities relative to bonds in this type of environment because of how resilient that a lot of companies have been despite the slowdown we've been seeing in growth in china and slowdown in trade and manufacturing recession that the u.s. economy is going through and emerging from >> kevin, we have the fed meeting yesterday, certainly on hold for the foreseeable future in terms of move in rates, how much has monetary stimulus fed into the recent round of record highs we've seen. >> a lot

a year ago we were looking at a much different situation, lots of volatility, significant slowing in the global economy. so the pivot by central banks here and in china in particular did a lot to lift stocks this year what hasn't lifted are earnings. the reason earnings haven't lifted has to do with the fact there's not a lot of capital spending, manufacturing is soft, and confidence isn't there a lot of it having to do with worry about trade. if we get something positive on the trade front, that's the right direction to removing uncertainty, get capital flowing, you might get the missing piece for next year, accelerated earnings forecast which is not something we had this year. we'll have to see. a lot of things accomplished between here and getting a full trade deal done. but a positive step in that direction would be a welcome one for sure >> brian, what if we don't get

great news on the trade front but do get delay in tariffs on sunday will the market take that as a good sign or recent the overhang still being left >> i believe you're right about being an overhang then continuing right now seems like there's some reports around not just postponing the tariffs but cancelling tariffs that were supposed to go into effect sunday and rolling back existing tariffs. if we get a little weakening of that as far as if it is just a postponement of tariffs that are supposed to go into effect without actually rolling back existing once, you could see it turn into consternation, questioning how serious the parties are to getting something done from my team's perspective we think there's a lot of credibility at stake as far as with trusting the president for the guidance around how trade negotiations are going, if it ends up disappointing now.

we set the stage for people expecting the roll back of some tariffs and if we don't get that, we would expect some of this rally this morning to maybe unwind, which isn't a huge amount, but it is a little bit of ding to not just investor confidence but also to the credibility of the president as he moves forward with these negotiations >> kevin, let's say because it is so many people's base case, tariffs are delayed, we get a phase one, does it change calculus for the year ahead, looking at wage inflation, more recently commodity inflation, is the move to recession overheating rather than lack of activity >> no, we don't see that in fact, what we're seeing is very low unemployment rate we're seeing what should be a

translation into higher inflation if you follow the phillips curvers, and it is not there, you're not seeing the inflation come back as you would expect as labor markets tighten, so we're not really worried about tightening labor markets, we're happy to see increased jobs and more production coming out, but what we would be concerned about is if asset prices got significantly high and extended around the world, such that staying too low for too long in terms of very low interest rates globally could create a situation where you have a painful unwind on the other side that's something that policy makers have to wrestle with as we look at record highs in the stock market, record highs in terms of household wealth and things like that >> yeah. record highs today for the dow, s&p and nasdaq, session highs now. >> we told you about bill.com,

one of the final ipos of the year shares of the b 2 b payments company, the ceo joining us, the founder and ceo, rene lacerte. good to have you >> thank you >> very nice open. nice way to close out the year talk about where you are in terms of the model, what it is levered to is it small business creation or is it increasing the size of existing businesses? >> we focus on helping small and medium size businesses get rid of the -- my parents are serial entrepreneurs, i lived that mess my first company, i lived it there are 6 million people in the u.s. is, they have a nest. they're stuck with paper manual processing of sticky notes, walking the office, should they pay a bill, and that

takes time from what they want to be doing, building a business i started this because i liked finance and accounting most people, think about any company on main street usa, they're not doing accounting, they have a passion and mission. we help them get back to that. >> in my own life, i have landscapers, my daughter's preschool, i could go down the list with paper copies i'm getting in the mail, having to pay. why do you think small and medium businesses have been so slow to adopt new technology and software options >> one of the things i learned at the dinner table, i call it the dinner table mba, cash came, stretch out payables as a consumer, you are not not paying the daycare provider, you're paying them as a business, everybody knows you stretch certain bills, you have to nag some people to pay you. what it means is there's a process, a manual process businesses are doing, and what

we do is we take that digital world and bring it to the paper process. paper is a great process mechanism, lets everybody do what they want, but if you don't get the process, you don't get the payment. the process was not automated. >> people may not realize, this is a 13-year-old company strikes me, you're describing it the same way today you did in videos 12 years ago when the company was new. interesting, too, you sold your previous company to intuit about ten years ago. >> yeah. >> you're an intuit veteran, another executive is an intuit veteran, someone on the board is an intuit veteran, you say our business depends in part on the relationship with intuit how much do investors worry about that, might they compete with you >> we focus on all our partners, great partners, four of the top ten financial institutions

all of the participates, these are people that smb, small and medium size business trust, they trust us to help them deliver a service to customers, that's what i focus on. that's what i want same story for 13 years. one of the things i know entrepreneurship needs, you have to have perfect balance of patience and impatience. impatience is i know technology is there, but you have to be patient, you have to have the technology developed more, market developed more. our partnership with intuit is an important partnership we love it we are one of the first app store partners from ten years ago when they opened up the app store and it has been a great partnership. >> payments processing seems to be a big area from an investor standpoint how are you thinking about growth there, given the fact it has been such a key area of growth for some of the other companies in the industry as well, whether shopify or -- >> i think back to one of the

other questions, why is smbs haven't adopted electronic payments i go back to i started the first company pay cycle, trying to do dad, grand dodd, mom, dad, you don't have to pay everybody, you need to stretch it out that process wasn't working for me i built commercial systems for intuit it was the process that was hard we focus what do we need to do, it is about that process is. we're excited about the opportunity and payment piece is where we get to at the end the payment, everybody thought you just can go electronic we had opportunities at intuit, flip a switch, people go electronic that's not what happened there's a manual process up front. that's what we have been busy working hard for 13 years to build. >> finally, i don't need to tell you, we asked new ipos about the balance between growth and profitability, that's kind of flipped in the middle of the year has it changed for you

>> my focus has always been the size of the market 81,000 businesses using our platform 6 million businesses across the company that need help if i have opportunity to drive more adoption, i know when you talk to our customers and they get on the platform, they tell you how much time it saves, they tell you, they make better decisions. if that's true, i want to serve everybody. that makes me happy when i serve more for us, how do we invest, make it grow. >> did you consider a direct listing? >> we did not. >> why not. >> you know, i think the opportunity, i've had a lot of investors over two different companies, venture capital investors, getting a chance to have strong foundational investors in the public markets. today is a great day there's going to be days, whatever happens, it will be different. having those people i had a chance to meet, they can look me eye to eye, get to know who we are and my story, that means a

lot to me. i am excited about the retail side, for those people to come in, but i know there are some people will take more time to understand the business and management team. >> hope you'll come in and look at us eye to eye again >> you bet thank you. >> rene lacerte. nice opening day the new prince of bel air. we'll explain when "squawk alley" returns tom steyer: wall street banks took advantage of millions of americans during the recession. so, my wife kat and i took action. we started a non-profit community bank with a simple theory - give people a fair deal and real economic power. invest in the community, in businesses owned by women and people of color, in affordable housing. the difference between words and actions matters. that's a lesson politicians in washington could use right now. i'm tom steyer, and i approve this message.

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i am scott wapner. here's what's coming up top of the hour we debate the market's move with blackrock's rick reader and get the outlook for stocks and fixed income. how much can ge rise in the year ahead one firm makes a call of the day. delta surges morgan, less than 15 away. see you soon. >> sounds good, see you then, scott. thanks. let's get to cme and rick santelli for the santelli exchange hey, rick. >> good morning. let's deconstruct this day, shall we let's zoom to the top of the session. 252,000 on initial jobless claims, distorted due to the thanksgiving holiday and variety of things on how those seasonalities occur, whether it is lack of information from the states or educated guesses still the highest since '17.

and very cool trade data what happens we now have two year note yields up four basis points, ten year note yields up ten basis points. what happened? a tweet on trade we can talk about how if you're a fixed income trader, the big picture is rates stay lower for longer, not because of fundamentals, but because of the strange world we live in where maybe the greatest hedge of nervousness about a stock market that defies logic sometimes is to be long treasuries or high quality sovereign. not only have you done this well this year and stocks have done well, if we have another december like last year, any doubt that buying treasuries would occur? the long end is leading the way, it isn't based on data, it is based on a tweet how the trade turns out, i don't care if you're the smartest person on the planet, nobody knows what's in the president's

head, in xi's head, how it will turn out the end of the day, one thing we all know short term moves, day traders, keyboard jockeys love it, but the market understands the big picture. it will get down how will it get done even if tariffs come, might be altered or changed, net result might be better than expected. i think personally they're going to sign something. finally, 30 year auction today, could be a biggie. big concession the market sold off. buyers will probably show up quickly, look at the inter day, two day, year to date of tens minus twos up six basis points cht could e could be one of the best sessions closed last year at 19, now at 22 up three on the year jon fortt, back to you >> all right, thank you, rick santelli when we return, a better pill to swallow perhaps, the ceos of p llndcase a oscar

health join us when "squawk alley" returns [grunting] [maniacal laughter] gold. gold! right, uh...thank you, for that, bob. but i think it's time we go with gbtc. it's bitcoin exposure through a traditional investment account. nice rock. it's time to drop gold. go digital. go grayscale.

welcome back dutchi in ditching the drugstore same day drug delivery here to discuss the partnership and broader industry, the ceos both here at post nine, welcome. mario, i will start with you, we had u.p.s. and cvs, the ceos on

air to talk about the expansion. fedex and wal guigreens how is this partnership different and how does it speak to i guess a broader shift we're seeing in the industry >> yeah. i started oscar five years ago i'm a computer scientist read the bills i get, i couldn't figure it out. oscar we start as a company that makes health care easier and more affordable. we built a number of unique features into the plan for example, we have half membership using telemedicine. and one of the magical experiences we will have that nobody else has is you sit at home, you feel sick, you talk to one of our doctors for free 24/7 the drug will materialize on your doorstep thereafter

that's the health care experience that's more affordable it's free for you. we think it goes beyond what everybody else has so far. >> this is starting in new york city i know this has been sort of ground zero for capsules' efforts. how will this scale nationwide >> we built capsule -- we started five years ago the mission for the business has always been to build a pharmacy that works for everyone. a pharmacy that works for everyone everywhere. so we are in the middle of expanding the business outside of new york city in all of the place u.s you would think we wi be one of the most important things about partners with oscar and the team is what we have invested in over five years, is building out a technology system that enables us to partner with

insurers, doctors, hospitals and dr drugmakers to drive better health care outcomes excited for this to be one of the first things i think you will see more partnership opportunities through the platform >> mario, is urban health care going to end up looking different than other places? it seems like this cvs/u.p.s. thing around packages, it's partly solving urban problems. then when you got more density, it seems like the capsule solution might make more sense to people. >> i think health care is very local. it will remain local you need different solutions for different parts of the country, for sure telemedicine and everything we can do for that would be a powerful application in particular in rural areas. one thing we started doing this year is to enable not just teleurgent care, but primary care as well pick a doctor in the cloud who will be your primary care

physician that can be connected with wireless ultrasound in your home you can use yourself it might be connected with other technology we can read from remotely what's happening with you. are you taking medication? are you adhering to the care protocol that will actually work very well in rural, remote areas. there will be different solutions in different parts of the country. what it comes back to is health care is too complicated, too costly for everybody if we can have a seamless experience and if can make it more affordable, those are two key points everybody suffers from not having enough of. >> speaking of costly. drug pricing and policy has taken a back seat to trade we're going into an election cycle. how do you think about pricing and policy going into the primaries? >> one of the biggest things we focused on is how do you make things easy for people to use?

more than pricing, more than the debate around are drugs too expensive, not expensive enough, we think the most important thing to start with is how do you make health care simple, easy and transparent for people. the conversation is, do we have the right data, the right systems? who is sitting in the center point of the health care system to connect the stakeholders that let's us understand whether we're driving better outcomes. our focus has been, how do we connect the stakeholders in health care? how does a pharmacy serve as the quarterback of the health care system and make sure we're partnering with innovative companies like oscar and other folks in the health care system to really understand how do you -- what's going on day to day and how do we drive those real time feedback loops to have a real conversation about what drugs are working, what drugs are not working and shifting the system entirely to a value based model. the things that oscar and capsule are doing the first steps of making that system come

to life in the u.s >> certainly health care has been ripe for disruption we appreciate you coming on to talk about how you are tackling that right now >> thanks for having us. >> thank you lost some of the gains from the opening trade. dow is about half of what it was at session high, up 313. pridt'isown e th tape any. but we're also a company that controls hiv, fights cancer, repairs shattered bones, relieves depression, restores heart rhythms, helps you back from strokes, and keeps you healthy your whole life. from the day you're born we never stop taking care of you.

melbourne, australia, born and raised robert frank joins us with a look -- robert >> the oldest son of rupert murdoch playing $150 million for an estate. it's the most expensive home sold in california the second most expensive home sold in the u.s. despite its price, it's a bit of a fixer upper. valued more the land it's got a 5,700 guest house, a pool house, tennis court, and

underground motor court for 40 cars my favorite, two secret tunnels leading from the house to the pool and the private garden. doing a lot with their disney wealth >> gotta get the 40 cars make sure the garage gets filled i'm scott wapner to tariff or not to tariff that's the question. the only thing hanging in the balance, stocks and your money it's noon. this is the halftime report. >> stocks hit new record highs optimism about a trade deal fuelling the bulls your next money move is straight ahead. a major warning on apple and its iphone shipments in china. ge soaring on an upgrade the stock up almost 60% this year is the turnaround for real we will debate in our call of the day.