good morning it's 8:00 a.m. at facebook headquarters and it's 11:00 a.m. on wall street "squawk alley" is live ♪ good tuesday morning welcome to "squawk alley." i'm carl quintanilla with jon fortt at post 9 of the new york stock exchange hard reversal coming off the worst day for the markets since october yesterday. got the dow up 222, some of the ecodata very strong. we'll begin with an update on the coronavirus. with us this morning on how it might impact technology is foundation capital's paul

holland and cameron graycroft is here good to see you. most of the discussion continues to pivot around supply chain movement >> that's right. >> especially in china and we know who makes a lot of stuff there. what's the thinking right now? >> the large fruit company in california, apple, is the one everyone's talking about, which has an exposure not just to china but wuhan in particular where they have manufacturing in factories. if there's disruption there, you'll see effects on that company as well as many others >> beyond apple, apple's big, they've got all sort os of money to put contingencies in place if you were with your executive committee having an argument about how much to diversify supply chains to outside of china, do you win if you were arguing for more diversification? yeah, the trade stuff is easing but there's this virus issue >> i think, yeah, you nailed it, carl it's way beyond apple from that perspective. i think when you look into the

boardrooms and the suites of companies that have a lot of exposure around the supply chain, this is a conversation they've been having well before the virus. i will simply point out -- >> i'm sorry just got to stop you for a moment there we are going to get an update -- getting a news alert on travel restrictions now out of washington eamon javers has that for us eamon? >> that's right. cnbc has learned that senior white house officials are discussing imposing travel restrictions on china that could affect flights into and out of china and could affect airports across the united states no decisions ultimately have been made, but cnbc has learned there was a senior staff meeting at the white house yesterday at which travel restrictions to china were discussed now, there is a press conference at the department of health and human services coming up at 11:15 eastern time not sure what announcements will be made at that press

conference, whether flight restrictions will be discussed, but they are considering those here it's obviously a very sensitive situation diplomatically, economically, and in terms of the health concerns surrounding the coronavirus, but senior administration officials are discussing that. not clear how many airports or flights would be impacted at this time. we gee we'll get more information as it comes. >> paul, that fits right in with what you were talking about. please go on with your point about the impact on supply chains and business. >> yeah. so impacts to supply chains well beyond an apple. this is the conversation happening in boardrooms and suites to figure out a strategy. ironically, couldn't be any better for following point, which is that this entire story, i mean, we're talking about -- there are probably 100,000 travelers a week plus or minus

going in and out of china from western companies, particularly technology companies, whether it's the u.s. or europe. you think about what's happened in the last two weeks. two weeks ago was, well, we're hearing a little bit about this, whatever let's do our travel. last week, kind of serious then all of a sudden everybody we knew around here that was going to go back for chinese new year canceled and now we're looking at a possible government intervention here around this. so this is something that's built a lot of negative momentum over the last ten days >> yeah. i wonder next steps from here, let's say, cameron, that china loses six weeks worth of in-person business travel. people who are just about to go cancel, maybe you want to see how this plays out before you plan more travel how much economic impact that has for the first quarter, second quarter of the year projects that maybe get delayed?

or is that easy enough to make up >> keep in mind this is also the time of the lunar new year, which is the last few years it's been quite a slow time with our companies that do business in china where it seems like things are fairly quiet for a week or two around the new year. so it could exacerbate what could have been a slow time regardless, but only time will tell with the 2003 sars epidemic, almost a 2% reduction in quarter on quarter gdp growth in china we'll see if that kind of thing could happen or not. >> paul, i mean, the word that we can just got from eamon out of the white house is really a step up from what's already going on the cdc is advising people not to go. they've suspended travel permits to mainland china. we talk about u.s. executives going. but there are asian executives who can't get to areas in china and that's been in place for days >> that's right. you'll see winners or losers in this

i hate to say it, for every one of these scenarios we see on a global basis, there are investor winners and investor losers. the winners will be the zooms of the world and the remote communication platforms of the world because people will have to double down on that as a way to continue to run their businesses the other winners will be people who provide in-home entertainment across the region, not just china but across the region, certainly not timed with anything, but ironically, you know, in the last few weeks, netflix has released "pandemic" as one of their new shows. that concept is going to flow through, whether it's chinese-based in-home entertainment or across asia and in other places. then the places that are going to get hurt are as you've touched on, supply chain-related businesses and also consumer packaged goods, branded businesses and things like that that require people to go out and engage on it because people are going to hunker down until this blows over. >> the other impact on tech, by the way, this week is if the market continues to be volatile,

a number of names with ipo the two tech folks are watching or casper and one medical. so if the market volatility affects those offerings in any way, that could have disruptions on the tech side as well >> indeed. the timing of it is just poetic in some ways because phase one signing and the sense that you were going to start to see an immediate thaw -- >> progress. >> -- in relations china was open for business again. the ability for some financials to have broader freedom in their ownership structures and then this. it completely offsets what we were looking for >> it's a setback for sure >> arguably, it would have been worse had we not had phase one yet and this could have shaken up a lot of things perhaps who it looked like had advantage paul, i wonder, does this coronavirus concern -- we're seeing how far it's going -- does it change the way you're looking at investing this year

and i mean that in the sense, does it bring forth any truths or ideas about the way that information or technology spreads its influence around the world? >> yeah, i would say it's two premature, at least certainly to affect something like in the early stage venture firm or the foundation or the things we're looking at we invest over a much longer sine wave. when you weigh in or speak to people who are medical professionals, a good friend of mine is also a terrific investor, and he's getting people to understand, look, at the end of the day, it's base kri a flu-like virus young, stronger people, normally healthy people, shouldn't be affected in terms of a mortal risk, certainly much younger people, older people, people who are already sick, it will have an impact. i think it's less about -- you know, it's going to make any changes on the investing environment.

the other part i think is this will in fact blow over just as sars did, these things burn themselves out at some level. the good thing, it's happening during a holiday period already and in january, right? if this had been when everybody was expecting a big second half and this was going to have a bad impact over a six- or eight-week period, it would be much more significant. there's time to make this up depending on how broadly in impacts. >> and how long the travel restrictions are in place. >> chinese tech investing for venture firms is a specialized area it's not something that's broadly practiced, you know, across all the firms >> all right paul, cam, thanks, guys. >> i think that's correct. just the side point i'd make on that is it's the opposite for the consumer companies, right? their number one or two company is china so they're watching

this very closely. >> indeed. paul, cameron, again, thanks when we return, shares of apple have nearly doubled over the past year, but there are these risks in china to think about. apple is up 2% we are going to tell you what to expect from earnings after the bell today stay with us to take care of yourself. but nature's bounty has innovative ways to help you maintain balance and help keep you active and well-rested. because hey, tomorrow's coming up fast. nature's bounty. because you're better off healthy.

it has been p best performing dow stock since september and it's off to another hot start to kick off 2020 apple earnings coming after the bell today joining us now on what to expect from apple's holiday results and guidance, is wolf's steve malanvitch good morning >> good morning. >> the current quarter, the one we'll get guidance for generally not a huge quarter for apple, but does this coronavirus issue turn more attention and possibly significance to guidance than normal >> well, i think it could. you're right, this is typically the next couple quarters are the weak part of the year. investors start to gear up for the 5g introduction toward the end of the year, but the coronavirus definitely throws a fly in the ointment. tim cooks is pretty good about calming people down. we'll see what he has to say

but first of all, about 20% of what apple sells is in china and a fir amount is sold during chinese new year hopefully, that would be temporary and demand would come back, but as you've been talking about, the supply chain could be an issue and i believe apple has some very large plants two to three hours by high-speed train from where the problems are in china. so i doubt he's going to make any strong pronouncements but i would think there's some risk. >> give than the iphone is still the biggest contributor to revenue and earnings, what should investors be looking at here they could have had a $10 billion-plus holiday quarter is that important? >> the story over the last 6 to 12 months has been the non-iphone business. it's been declining and flattening out, but the wearables can start to add three to four points of total revenue

growth services will probably grow about 20%. people might want an update on apple tv plus. but it seems to begoing well what's helped the stock over the last year is the fact that people feel like the company is a bit more diversified and the worst seems to be over in terms of the iphone decline. >> steve, it's not the most important thing going into tonight's conference call, but the president has seemed to suggest that there's a bit of a -- like the company owes him for the waivers on tariffs as it pertains to the privacy of the iphones regarding this case in florida. how much would that hurt if some of these waivers fell off? >> well, it would be a negative. cooks has been pretty smart. he's gotten in there right away and convinced them, if you put tariffs on us, samsung will sell for phones there's no doubt apple would have to raise prices and have some neg tiative impact on demad

doesn't look like that will happen then the second issue of opening the phones i don't think investors get too excited about that the earnings estimates for fiscal 2020 are about the same as a year ago. p/e expansion pretty much completely explains the stock's increase it's now sitting at 25% above its 200-day moving average i'd be concerned about a question but never thought the stock would be here either >> market cap near $1.4 trillion right now, near all-time highs we're talking about all these potential issues how perfect does this quarter have to be how reassuring does tim cook have to be about guidance for the stock to stay here and possibly move higher >> the december quarter they're reporting will be fine he can't sound too scary on the outlook, which he probably won't. i think it's a bit early to have any conclusions in terms of what's going to happen with the virus. i would say the way things are going i'd be concerned i doubt there's a company in the

u.s. that sends more people back and forth thechina than apple does so at least in thor in term it's a risk for the stock >> given that, how much of apple is trading on the products that are out right now, the services that are out right now let me stop right there. it appears that health and human services secretary is hosting a press conference on the u.s. response to the coronavirus. let's listen in. >> -- of allergy and infectious diseases today's briefing replaces cdc's daily telebriefing as we thought it important to provide the media with a face-to-face opportunity to ask questions of our top public health experts. first, let me provide a brief update on the situation. as of today, the cdc has reported five cases of the novel coronavirus infection here in the united states. china has now reported more than

4,500 cases. americans should know that this is a potentially very serious public health threat, but at this point, americans should not worry for their own safety this is a very fast-moving, constantly changing situation. dr. redfield and dr. fallgi will walk through details of the current situation and response part of the risk we face right now is that we don't yet know everything we need to know about this virus but i want to emphasize that does not prevent us from preparing and responding we have the experience of responding to two earlier coronaviruses that emerged to cause serious illness in people, sars and merz. we have experiencing responding to bird flu outbreaks in china one challenge is with an emerging virus like this, our current assessments are based on an uncertain denominator

our denominator is the 4,500-plus cases that have been identified in china as well as more than 60 cases in other countries. but these early cases are naturally the most severe cases because patients presented themselves to health care providers. how does this skew or understanding of the virus first, we're still determining the real speed of spread of this disease, which is represented by a number known as r-naught, which is the average number of additional people infected by a given person with the disease. one founder people found r-naught estimates ranging from 1.5 to 3.5 as compared with, say, a number of 12 to 18 for measles. we're also still learning about the severity of the virus. currently, china is reporting more than 100 deaths from the more than 4,500 cases.

that is a high rate, but, again, the cases that have been identified skew to the severe including patients who are older or have other illnesses. the mortality rate may drop over time as we identify a broader set of cases we're also working to understand the incubation period. this number varies for coronaviruses with extremes being anywhere from 2 to 14 days that number could be higher or lower for this virus finally, we're working to determine whether there is asymptomatic transmission. normally with a coronavirus we see more viral shedding and more transmission when a person is more symptomatic china has reported there may be evidence of asymptomatic transmission all of these questions must and will be answered in order to provide a proper risk assessment but they are not stopping us

from employing tried and truth public health methods in the meantime the playbook for responding to an infectious disease outbreak is relatively simple and multitiered. you identify case, isolate people, diagnose them, and treat them then you track down all the contacts of the infected person and you do the same with those people and the same with contacts of contacts if necessary. that approach is how public health departments and health care providers working with the cdc are handling the cases here in the united states and i am very grateful of the hard work they are all doing together this kind of work coupled with studies and analysis is also how we answer the questions i described earlier. on january the 6th, we offered to send a cdc team to china that could assist with these public health efforts i reiterated that offer when i spoke to china's minister of health on monday, and it was reiterated again via the world

health organization's leadership today in beijing we are urging china, more cooperation and transparent si are the most important steps you can take toward a more effective response beyond that, all options for dealing with infectious disease spread have to be on the able, including travel restrictions. but diseases are not terribly good at respecting orders. so we would have to assess carefully where whether the evidence recommends any steps beyond the thoroughly tested methods i just described i know this playbook well because i was in the same building here in the 2000s serving as general counsel then as deputy secretary alongside some of these very fine scientists and public health officials when we responded to the sars outbreak, monkey pox, anthrax attacks, pandemic flu preparedness, and a number of other infectious threats that has given me a deep appreciation for the institutions that oversee our

response the united states has the world's finest public health system we've been monitoring this virus and preparing a response since back in december, butmore than that preparing for these kinds of outbreaks is part of the daily life at hhs and for america's public health professionals. preparedness is a day job around here we are constantly making investments, training personnel at all levels, carrying out simulations and exercises, and sharing information. this commitment goes straight to the top. the president and i have been speaking regularly about this outbreak and i have been speaking with the senior officials at hhs and the white house multiple times've e each day since the outbreak began the president is highly engaged in this response and closely monitoring the work we're doing to keep americans safe a brief sense of the work being done across hhs beyond the cdc activities i've mentioned. our emergency response arm, the assistant secretary for

preparedness and response, or asper, is assessing the level of preparedness we have with the strategic national stockpile, which includes pharmaceuticals and other necessary medical supplies hhs administration for children and families is working with the state department to assist any american who is will need assistance being repatriated to the united states. nih, asper, and fda are pursuing research and assessing the possibilities for vaccines, diagnostics, and therapeutics, which is necessarily a longer term project in addition to the work being done in government, there are basic precautions all americans can take health care providers should be on the lookout for patients with travel history to china, especially the province and for relative symptoms. late on monday the cdc and the state department issued a level 3 traveled advisory for all of china. this means americans should reconsider or postpone travel to any part of china.

state department has also maintained what they call a level 4 warning for hubei, meaning americans should not travel there in closing, i'll remind the american people one more time, we are working hard to keep you safe we are constantly preparing for the possibility that the situation could worsen and your health and safety has been and will be our top priority to discuss more about the current state of the epidemiology and cd's work, i will now hand things over to cdc's director, dr. robert redfield thank you. >> thank you, mr. secretary. thank all of you for joining us here today >> that's the health and human services secretary alex azar reiterating five cases in the united states, 4,500 in china, potentially a serious public health threat but at this point he says americans should not worry for their own safety meg, as the administration tries to learn about severity, incubation, and asymptomatic

transmission market didn't move too much with his comments >> that's right. those questions still out there. he said the american public doesn't have cause to worry right now. others in the public health community including on "squawk box" says he expects outbreaks potentially in the united states interestingly, secretary azar did address the potential for travel restrictions from china he said those have to be potentially on the table those don't yet appear to be planned coming from the administration he said right now they'd rather rely on tried-and-true containment efforts, tracing the contacts of known cases, potentially trace ing their contacts right now, we haven't seen human to human transmission in the communities in the united states we have seen that in china we've heard reports of that happening in china but here all of the five cases are currently travel related

so interesting to hear how the administration is parsing through the data right now, and they are laying out that there are still questions about how this virus spreads >> meg, i'm wondering, how much access to data does the administration have? i'm certainly no expert in this field, but it seems like china having more than 4,000 cases to deal with has the bigger pool of information to be able to answer some of these questions about the rate of spread, about the mortality rate are we waiting on information out of china, or does the u.s. have what it needs within a certain number of days or weeks to develop its own answers to these questions? >> i think you pickd up on an interesting potential tension in what the secretary was saying. he mentioned cdc's offer to send a team to china, that they've been offering since january 6th. he implied that offer hadn't been accepted. so it makes you wonder about the cooperation going on at that level between the u.s. and china and public health researchers.

cdc has had operations -- or had teams that have been in china, but it sounded as if they feel as if their help is not being accepted directly. so there is a question about that there have been questions about how quickly information was shared at the beginning. the world health organization has been very careful to commend china for sharing information and details and wants to encourage them to keep doing so. but of course there are lots of questions about the quality of the information that everybody's getting. >> and then, meg, there was this interview with the chief scientific officer at j&j. at the moment, we think we can make a vaccine and bring it to humans in the next 8 to 12 months it might be faster we have to know it works and animals first. typically, how long does it take for vaccines to come along once a novel virus is discovered? >> we had j&j's chief scientific officer on "squawk box" yesterday morning where he broke

that news. he said from ebola, they were able to take it from the -- having the construct of the virus into human testing in six months that was quicker than usual because they'd been working on it for some time with zika, they said it took 12 months because they had to start from scratch in terms of having the genetic sequence of the virus. he said this situation is more similar to zika, but because technologies have improved in the last few years he thought they might be able to shave few months off that time period. he's being conservative when he says they have to prove it out first, but it will be several months >> important updates and just as important that you're helping us understand them, meg thank you. >> thanks. time for a news judgment date sue herera has that at headquarters thank you very much. here's what's happening at this hour president trump is set to unveil his administration's much-anticipated mideast peace plan when he meets with israeli prime minister benjamin netanyahu at the white house later today. the odds of it succeeding,

however, are long as the palestinians are already rejected that plan meantime, netanyahu says he is withdrawing his bid for parliamentary immunity from prosecution on corruption charges. he said in a statement the proceedings in parliament would have been a circus, and he didn't want to take part in this, quote, dirty game. he has denied all wrongdoing thousands of palestinians protesting in gaza city ahead of the trump peace plan announcement gaza's hamas rulers expressing rare support for palestinian president mahmoud abbas of the rival fatah movement and an emergency level wildfire is burning near australia's capital forcing authorities to warn residents to be on high alert the fire was apparently started by sparks from an australia defense force reconnaissance helicopter that was trying to land residents in the nearby town were told to seek shelter. you are up to date back downtown to you >> sue, than you very much

let's pivot from the coronavirus to semis and the potential impact of the virus on chip stocks and manufacturing overseas t.j. rogers, founder and former ceo of cyprus join us. thanks for your time today >> thank you. >> you've been around the block a couple times this probably sounds somewhat familiar in terms of the challenges the supply chain faces. what's most important to keep in mind at least at this point? >> well, this looks like a replay of sars from 2003 i remember we shut down travel to china it didn't interrupt our shipments because the supply chain wasn't exactly centered where the disease was, but our engineers couldn't go. we in effect paused business with china for a few weeks i think everybody's got to remember sars, same thing, infecting another animal which was then eaten and affecting people sars came and went

and the total death count from it was 800 today, 3,200 people die on the world's highways so while you have to worry about obviously it's important and you can't minimize it, and we don't know all the data yet, you have to put it in perspective >> t.j., how much of the risk here is lost business, just opportunities that might not happen because of this travel or because of supply chain dislocations however is going to be shifted around and made up later in the year based on previous experience >> well, right now, china's one of the biggest customers of the semiconductor industry because, you know, the world supply chain is shipped to china, assembled products, and shipped back to the world again. we're at china's new year and typically china goes dead for two weeks in terms of business

so, you know, if you want to count money during this period of time, it's the best time for this kind of problem to happen >> therefore, are you -- it sounds from what you said before as if you're saying that it's important not to overestimate the impacts here given the time of year, it sounds like you're saying from a business perspective -- of course you never want something like this to happen, from a business perspective, this is one of the periods of lowest impact >> that's true i remember very clearly the sars epidemic i remember our vp of h.r. came in and he was all jittery. after he got into about his 30th minute of my executive staff meeting on sars, i said you have two minutes to wrap it up. where can't we go, what can't we do, and then we'll do business as usual unless this is much worse than sars but it's the same kind of virus from the same kind of source

unless this is worse than sars, this is not going to mess up business very much at all. >> finally, t.j., ex the virus concerns, everything we heard leading up to this week in earnings season from texan, microchip, psi works, the blowout quarter out of intel, had suggested good things about where we are in the cycle. do you see any problem with the commentary we've gotten so far qualitati qualitatively? >> no. you know, it's kind of the counter. we've done a deal with china we're turning things back on both sides have realized both sides were losing because of lack of trade, and unfortunately just when the china trade tensions go down, then we've got this other problem i think it will be temporal. if it follows sars, the number of people infected will raise up to something like -- the sars was 30,000 people got sick and 800 died so we're, you know, part of the

way there. so it's unfortunate, but again, i don't think it's going to have a big impact on our industry, unless china says something for some reason. >> that is the key figuring out just how long some of these travel restrictions will stay in place t.j., we always look forward to your guidance and insight. thank you so much. >> you're welcome. still to come, a new privacy process for facebook imagine traveling hassle-free with your golf clubs.

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you can choose to read that as a call on cannabis. "moon alice" you were listening to welcome back to "squawk alley. mark zuckerberg announcing new privacy tools one day ahead of facebook earnings. julia boorstin has more. >> jon, mark zuckerberg says facebook is starting the decade by giving its users more control over their prooifr ivacy. he said they will prompt nearly 2 million people to view their settings to review the information shared with outside apps when those users log in through facebook facebook is also rolling out a

tool worldwide to monitor what it calls off-facebook activity it will show users the information that businesses send the social giant about those users' activity and other sites or apps. facebook then uses that information to target ads. starting today, users will be able to see a summary of that information and clear it from their account if they want to. the question is whether people be concerned about all the data that facebook has on all their activity across the web and will opt out. that would damage facebook's ability to narrowly target ads when facebook first announced it was working on this tool back in august, the company wrote, "we expect this could have some impact on our business, but we believe giving people more control over their data is more important. this is just the latest example of how facebook is looking to stay ahead of regulation with ongoing scrutiny of facebook's data practices in the e.u. as well as here in the u.s. facebook will report its earnings after the bell

tomorrow we'll be listening to see if zuckerberg gives any more guidance into how limiting ad targeting could hurt the company's bottom line. jon? >> jaul yulia, thank you. roger mcnamee joins us now here at post 9. roger, you've been very critical of facebook in the past. i'm going to say this new tool and process looks like them trying to get the cat back in the bag for a sense. for years they spent time trying to get people to share their facebook info widely across the web, log in with facebook, et cetera, et cetera now they're saying if you logged in with facebook anywhere, you might want to check that make sure your data is not going crazy out there. didn't they create this issue to begin with >> of course they did, jon but listen, to be clear, transparency is a good thing i'm really hard they're doing this but i want to see how it works in practice. i want to see two things, first,

do they in fact give you an easy way of doing this, right, or is this just a press release and then the thing will be buried somewhere, or secondly, have they studied this and determined, hey, nobody checks their privacy settings even when you warn them, because i suspect there's pa la lot of that. people are busy, interested in content. hardly anybody checks their privacy settings that's what i've been trying to warn people about for a long time it really matters. the thing people don't realize is how much the content facebook has about you they get from the outside. they either buy it or get it through negotiations with other websites some of it is really invasive, right. the famous story about women's periods and things like that where at the end of the day, you sits there and say what harm can happen here, and the answer is you don't know exactly, but bad things happen to people every day. >> so is this a case of facebook

doing the right thing but in the context of a bad situation or, i mean, i could argue, if you were really pro privacy and you're facebook, you shut down all that third-party stuff and make people opt in again with better understanding of what that means, the information facebook would be getting, the information they would be getting. the you let this information grow, we'll use it to target ads at you if you don't, don't do it. >> that is precisely right the default situation right now is everything's legal and you have to find a way to opt out. it is incredibly difficult because so many platforms don't give you any way to do that. moving everything to an opt-in model where the people who use your data have to ask permission for everything they do with it, that would be so much better but i don't hear anybody doing that i think the fact that people like me are pushing for it may explain why they're trying to give you 10% of the solution this way to make, you know, the

problem go away. but we also need to be clear this is just one of 100 different problems we're dealing with these guys, right obviously, permitting falsehoods in political advertising is a giant issue. algorithmic information of hate speech, conspiracy theorys is a giant issue. this is really important but not like it's going to solve the problem. >> are your concerns about facebook -- and you're aware of them -- are they worse than the unknown concerns about say tiktok >> no. in fact, i would argue that today there are so many concerns that part of the reason people have trouble dealing with it is where do you look? last week you had an investor in clear view a.i., scraped billions of photographs i have a the web and gives an ability to identify anybody >> we had him on the show. >> i watched jon's interview and i'm going, oh, my god, this guy is sitting there and saying, hey, you have no rights.

i'm sitting there going, there has to be something deeply wrong with that. there are literally hundreds of companies using our data in ways we can't even imagine with technology that's getsing so power that feel our ability to control the choices in our lives is at risk >> his point was in fact you don't have any rights just like we don't have rights from a search standpoint now. you can search me. i have no way to fight that anymore. it's migrating into a visual image. >> he stole all those photographs. the starting point is he violated the terms of service of every platform from which he took photographs >> and he was an investor. >> he was defending it and twitter has come down and said cease and desist. now, facebook has not because one of facebook's board members is one of the early investors in clearview a.i. so as a consequence they're not doing it carl, you have the right point there are hundreds of people doing this and the rules right now are totally in favor of the

companies. snits >> it's whac-a-mole with all the new issues to look at and if i go to a website, they say we're collecting cookies but if you want to see it, you have to say okay are they essentially saying, well, we warned you and you said okay and now we're going to do what we want >> you put your finger on one of the three core things we can do. if you shift the default model to opt in from opt out, that would make enormous change if you banned algorithmic amplification, if you said you cannot amplify anything, you have to let the news feed be time based and user controlled, that would get rid of the problems with hate speech, disinformation, conspiracy theories lastly, if you limited microtargeting around elections, if you said, sorry, no microtarg etc.ing for seven days before an election, that would help protect against voter suppression.

there are things you could apply universally but we don't have a government willing to do that. >> user growth is strong it's a huge collective action problem. >> huge. which is why what i do can be frustrating some days. >> well, speaking of all of this, roger, before we let you go, want to mention the paperback edition of "zucked" is out this week. important milestone. >> what's important is i've don a significant addition to the book there are four new chapts ers. a lot has happened since the hard cover came out. it was lucky for me. it made "the new york times" bestseller list, it has stimulated a conversation, but the conversation needs to change because political action is really the only way we're going to get progress on this stuff. and the important thing is that everybody understand that we do have an ability to make these changes because there is bipartisan support for many of the improvements that we're talking about here and what we need to do is to make this an election issue in

2020 because, let's face it, there's a lot of election interference going on right now. there was a story last week in "the washington post" about how hate speech is being districted against democratic candidates. they didn't ask the of course questions. is there a coordinated effort to do this? is there a network its turns out there may well be, a network of 2,800 facebook pages amplified by 1,800 facebook groups that appears to be driving all of this stuff into the marketplace to divide dems and reduce turnout. we shouldn't be allowing that. democracy should be one person, one vote, and no foreigners allowed. >> that whac-a-mole again. >> the paperback comes out tuesday from penguin i hope everybody will buy one. >> thank you, roger. the coronavirus concerns having an impact on gaming stocks

bru contessa brewer has more >> visitation for the chinese new year off 69% from last year according to government number ps dropping visits from mainland china is more dramatic someday four of this holiday and 89% decline. seven cases have been so confirmed in macao and the crackdown on who can enter hotels are following government-ordered precautions to a t they have detailed cleaning. the chief executive has the option, though, of closing these casinos all together if the outbreak intensifies in macao. meanwhile, we are seeing a big turnaround today with shares turning positive for all but wynn over the last week, stocks have plum edmontoned. mgm down 5%. it gets roughly a quarter of its revenue from macao las vegas sands gets 65% of its money there. it's off of 9% on the week

wynn is off almost -- a little less now than 1nan 14%. it's turned positive now with nearly three-quarter of its revenue coming from macao. and in hong kong, melco got punished, down for the week some 16% but recovering some ground today. i want to point out this morning a former board member of las vegas sands told me on "squawk box" that online gaming in china over the new year holiday is up 90% from last year's holiday you've got people stuck at home. in china, online gaming is illegal. it's unregulated play. people are going to foreign sites. but he continues this a wake-up call to the land-based casinos because even in this country, that's the trend if knew chfuture of gaming is mobile >> contessa, i wonder, should

investors expect pricing actions so that some of these casinos are going to try to get more customers coming in who are not from china to sort of make up for what they're missing in that traffic? missingn that traffic is that something we should expect to see? >> you know, we would see that like we did in las vegas after the mandalay bay shooting, that throughout the city there was an effort when marketing started up again to try to get people back into las vegas right now, the casinos that are in macau are in a wait and see mode how long does this last? how long will people be under travel restrictions and major cities under quarantine? right now because they are starting to crack down on who can enter mccould you, i think there isnothing to be done until the immediate threat has dissipated, john. >> still a lot to understand contessa brewer, thank you after the break, shares of

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the "halftime report." here's what we are working on. the investment committee tackling the two big stories today, apple earnings after the bell the spreading coronavirus. we will discuss what both mean to your money today. plus, jojo said he was looking at twillio

the stock makes our call of the day today with an upgrade. is he buyinget now we will ask him that question. we will also take our positions today on starbucks and amd. they report after the close today. let's not forget about apple and everything else, too we will see you in just a few, carl five minutes away. >> going to be a busy night. thanks scott look at shares of pay layers surging post earnings after a beat on both the top and the bottom lines their ceo scott wine joins us exclusively this morning good to have you >> good morning. glad to be here. >> it seems like quarter after quarter if the questions aren't about tariffs and sourcing it is now about the coronavirus and sourcing can you tell viewers essentially what you said on the call? >> we felt good about the fourth quarter and the way the year played out for us and we are optimist, heading into 2020 both with our products and our leadership team and obviously the curveball thrown with the

coronavirus. we source some from china. parts are still flowing. we have restricted travel but we don't expect a significant impact to our business there was an extension of the chinese new year which we have to play with but we feel good about the suppliers to continue to be able to provide the parts we need to build our vehicles and satisfy our customers. >> what is the most important dynamic that would now affect the current quarter? is it the duration of travel restrictions in china? something else. >> if something happens that disrupts the supply chain we believe that our suppliers there, we have been dealing with them a long time and they have taken steps to mitigate any impacts. we have parts coming from wuhan and they are continuing to flow smoothly we are encouraged by what we have seen so far. >> what are you seeing when it comes to demand, scott n this economy? i mean as well as things are

going for a certain segment of the economy, and probably the one most likely to be buying equipment from you, i would think you look out into the year and that drives your expectation for sales growth is it really about the broader economy, and how well the middle class, upper middle class, is doing? >> certainly, you know, many of our workers work in that industrial environment we need consumer sentiment to stay strong. so far it has. we anticipate the economy is going to remain in the 2 to 3% range. that's good enough for us. credit remains very available. we have great new products that tends to drive demand traffic within our dealerships has been good and we are reasonably optimistic for the year earnings up 8 to 12% not a bad outlook for 2020 for us. >> north american retail up two, whereas harley, which also reports today, has north america retail down three. i know some of the categories

might not be an exact match, but are we seeing a bit of a share shift in that area, at least when it comes to discretionary dollars? >> we have done a great job with the indian brand to regain market share we have been on a little bit of a share decline in the first part of the year returned to share exchange in the fourth quarter with the indian. liquid cooled engine great technology we launched a new sling shot in las vegas last week. we feel good about new product introductions in our indian brand and what we can do with that business and sling shot throughout the year. we expect growth and market gains in motorcycles. >> are you seeing a trend towards more financing of product or less, are more consumers coming in and will be to plop down in cash >> two thirds of our buyers use some form of credit. we work with third parties to

provide that credit is very available interest rates remain low. ultimately that aids our buyers. we except that to continue to be a tail win for us throughout the year really it is about brand and environment and technology and providing the customer engagement the team has done a really nice job exiting the year and going into 2020 with an exceptional game plan that we feel comfortable we can execute. >> scott, shares responding to all of that today. thanks for coming in and talking about it good to see you again. >> thanks. scott wine with polaris. it was six years ago today before becoming president that donald trump tweeted a prediction that apple stock would fall based on their dumb refusal to give the option of a larger eye phone screen. had he held, he would be up 400% from the 70 or so it was at the time we don't though if he bought it

later or whether she was serious about the thing. >> we should give him credit about being right about bigger screens on i-phones. they eventually did do that. >> they are bigger now. >> maybe he bought again when they announced a bigger screen that would have made a lot of sense. >> apple reports tonight it comes on anniversary week of the ipad there was nice archival footage of people dising the ipad when it came out, saying it was mog more than a bigger iphone. >> what does ipad make you think of right now it makes you think of tablets. this apple reporting is the most important of this coronavirus period not only because of apple's supply chain and manufacturing in china but also because of their retail presence there interesting to see what tim cook has to say. >> apple is going to be huge of course all the granularity and clarity and color about china. then amd

lisa sue will talk to us in the morning talking about the supply chain. and then we will get through e-bay has things heat up. >> people got to watch cnbc. >> tomorrow and thursday two of the single busiest days of earnings season let's get to the judge and the half. carl thanks. i'm scott wapner front and center this hour, markets on edge as two major events impact your money today apple's critical earnings report, the latest on the coronavirus. it continues to spread weaver on top of both. it is 12:00 noon, this is the "halftime report." stocks rebounding from the biggest selloff in three months. but is it safe to start buying again? apple after the bell will earnings today add some relief back into this market the traders take their positions. up in the cloud. shares of twillio soaring 25% so far in 2020. and the stock just got