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good morning, it is 8:00 a.m. at apple park in coopertino it is 11:00 a.m. on wall street, and "squawk alley" is live. good tuesday morning welcome to "squawk alley." i'm jon fortt. we're going to kick things off with apple, just under two hours away from a big event this

afternoon where we expect to see a new ipad and a new apple watch. i argue this is the most important launch for those products since their debut why? the environment that we're for the ipad it is all about covid productivity people are trying to buy devices for work from home and school from home. they are trying to extend their lead on the tablet space and what about the watch it's all about health monitoring as people work out from home and now look for additional tools to monitor their vitals during covid. apple might provide the knockout punch and make things like google's proposed deal for fit bit irrelevant if it was a fortune 500 company, that would have put the ie had alo

alone ahead. >> one star of the show today could be the ipad. what do we think we'll see today? the expectation is that tim cook is going to announce a new ipad air. that is a relatively less expensive model in the lineup. and coming at a potentially good time for apple we know consumers are looking for quits to help them as they work, learn, and play from home. apple reported ipad sales up 6.6 billion. that was up more than 30%. the highest june quarter revenue in eight years for the company growth was so strong that apple said at the time it was supply constrained. apple shines in tablets. that's according to the latest data for research. sam sung controls nearly 20% of

the market people will ask how much more share apple can gain in the education market especially with more students studying from home now. i spoke to tim cook about that when they last reported results about the demand and he said it was very strong. >> tim cook talked about this as the future of the computer, and then the covid thing might have turned that entire narrative around >> yeah, john, you could argue that if we are maybe less mobile, right, at the margin maybe portability, screen side, can afford to be bigger. once you roll kids into that as well, we know what covid did to

education and online learning, maybe there is a new environment that can allow the ipad to make a stair step but you're right it has been a tougher slog on the enterprise than we were lead to believe when it first came out >>. >> when it comes to a product e productivity market, it's not clear if the sales were just pulled in or is there still a lot of buying cocome in q4 >> that is a billion dollar question for any company the education piece of this story is so critical you look at what google has been doing, the popularity, the widespread usage that chromebook has seen in recent years i'm really listening out for the event to hear what apple says about making this have a more anchor shot in education

some critics say that google and microsoft has easier bundles to use when you're going to remote learning will apple provide some of that? and that goes in as well, to this idea of a subscription bundle are we getting that today also it's all about that recurring revenue that wall street loves to have. and apple services and this $50 billion a year business. how will the products that we're going to see today play into that revenue stream. >> i love a bundle we'll have to see if we get that and speaking of that it is about that time to talk about the apple watch. we have news this morning on two one is workouts, and the other is making a use of an oxygen sensor >> yeah, you mentioned that now is the time, it is covid, there

is so much opportunity here that wasn't hear before i think one big grapple is health and fitness people are not going to the gym for the most part. the at home workout has welcome a really big deal. i have hearing about a future that could bring workout videos that you could just follow along. give you new ideas so that is definitely something that we could see apple talk about today. moving more into peloton easter tire with the digital subscription business and content. so that is an area i expect to see some movement. the other is in the medical field where apple watch has been playing for some time now give than it is covid, one of the

things i think we could have seen for awhile is around oxygen levels in the block. it is something others have been playing with as well it would be something relatively new for apple. in this time of covid, where it is a respiratory disease, i could see that being a tie in there. i could also see apple announcing studies around this you could see them looking at ammonia and other lung conditions i think that could be very exciting >> there could even with a covid time, right? but blood oxygen monitoring being relatively new for apple,

there are devices that already have this. do you think if they do have this new feature it brings it more mainstream? is that something they really want >> i think that is tbd you can absolutely buy on amazon right now and get a pulse oximeter it goes on your finger there is some debate going about whether or not they will be useful in a time of covid, particularly when one of the key symptoms is a shortness of breath there is talk of someone being told to stay home by diagnosed with covid, would this be useful to have on hand? i don't think apple can walk into the event and say that we have proven this will be useful. i think more likely they will say let's study it that is pretty much all of the

medical features they have done. >> i wonder if there is potential, you think were for more of a platform move here if they have this feature in the watch is it an opportunity for health tech specialists and software comes to bring people in on that, could they play it that way could they use it to catch things early >> i don't think apple would ever diagnosis someone with a medical condition. that is a very regulated area that apple is going to try to avoid as much as possible. they don't want to be a medical device twaen that is very different

so i can see them giving consumers a reading b but but making sure the physician is part of that experience and alerting people if it is time to say come in do the doctor's office, and apple played with tele medicine in the past. the idea of video visits with some of the preer announcementings i could see that also being part of this. we have seen them announce it in the past they will never be a medical device company one of the consugoals is to be consumer health and in partnership with the medical industry as much as possible >> thank you for your insights there. apple hanging in there with the market cap above $2 trillion still. these are products that for awhile people were like i don't

know if the growth will really be there they are no iphone, but in this environment quite a spotlight that will be interesting today >> yeah, i was just thinking, you know, what krissy said about the medical devices. just how close will they try to get to something that was highly regulated, but maybe insurance companies might be willing to give better premiums to those who wear it and have some of these notifications coming to you sooner john, i also wonder if apple gets as much bang for the buck we won't have that room full of obsessed tech journalists belonging belon blogging at the same time, but you can follow along on twitter. >> in a way it's like they still

have a captive audience. and i think we want to see how they're going to do it and you have that $2 trillion story, still. it's amazing they are half a bill in market cap ahead >> a lot of that story has to do -- >> half a trillion >> half a trillion, yes. a small distinction there, but the market has a lot to do with that 5g phone. i know you talk about it all of the time in silicon valley it is seen as the major next frontier for the big tech companies at large you have amazon now coming out with it's own wearable the halo watch, we didn't get to that, but also going into pill pack pharmaceutical deliveries it will be interesting today to see if apple ups the stakes with that watch and what direction it

is heading in. moving on, another day, another street high for nvidia this time they are taking the stock up to 700. bullish on their prospects we will ask paul jacobs about that nt.ex

welcome back, the backlash is building, the co-founder is calling it a disaster that would be a threat to sovereignty and they promised to keep arm neutral, but he told me that is highly unlikely and it could hurt arm's growth. >> the majority of them are competitors. so it is unlikely they will want to work with arm my fear is that it would diminish the importance that they receive in the future >> the financial times board

saying they agree. they could intervene in the relationships under the foreign investment relations joining us now is paul jacobs good morning to you. i just outlined backlash in the uk arm seen as the jewel of the tech crown you also have experts and officials in south korea expressing concern does this deal get done in. >> i think there is a question about it from a regulatory standpoint they are not going to want to damage the value of the thing they are working on. there is sport of a new

architecture if they reduce the ability, they could see more power and energy go into that eco system. there are some things. so bhae is interesting is the data serve side. there are not a lot of competitors out there, and that is poised to the synergies >> yeah, and these are still early days, and they may have the best intentions, but could they perhaps change their mind and create problems for 5090

licensees. >> yeah, are we had licenses with the arm when i was at qualcomm some of those are long term. there are things built in to make sure that they have access to the architecture. they change things, so there is no question that when they owned arm they were focused on the plan but there are other architectures that people might use. i think that there will be energy put into that eco system to bring that along as well. >> if you were still winning qualcomm would you consider buying arm >> i think with where nvidia is

at, the currency of their stock, the deal makes more sense. it didn't make sense to us financially in the other days. we looked at buying nvidia once in the past as well. i think other companies are looking at these things. and people are using their currency >> yeah, we have been talking about that a lot, so to extend this what if game, then, do you think the likes of qualcomm as reason to be wearing but graphics technology this cheps is an area where they work >> yeah, they are very focused on the mobile chips, and they're focused on power con trained

environments nvidia has been focused on the high end, photo real tick realistic visuals. they had not been that successful there so i think there is difference spaces in that market. i think there will be some constraints that keep things open so that companies like qualcomm, apple, and others. >> okay, i want your take on the news of the day. especially give then environment that we're in, how important are these two mobile products? >> i think we all know we're on screens all of the time right

now. that is one important thing. apple watch, you and i had a conversation a long time ago about whether or not we were wearing wearables. that seems to be a thing now i have my fit bit on to track my sleep, my resting heartrate, and with covid there is reasons people want to track things about how their body is working. i think as we see more push, and i think the fact that apple popularized them that helps a lot. >> let me ask you about some of the politics going on. they fear it could be used in a trade war. is that a real concern given what we're seeing right now?

>> i think it is a very interesting time, let's put it that way you see things going back and forth. qualcomm had some of those finishes things can happen. things have certainly not gotten better, and we're seeing that in other areas as well. they are trying to push the open radio access network where you can mix and match the components between different parts of the infrastructure we have seen china move away from that. i think there will continue to be competition on the technology side with the different technology companies and we'll see if it turns out there there are two separate eco systems,

that could be a possibility, certainly, going forward >> yeah, that bifurcated internet that people are afraid this could lead to >> thank you, paul hope to talk to you again soon meantime two-day fed meeting begins this important, starting at 11:00 a.m we do have the latest results. let's go to steve leishman >> yeah, i responded to the survey, there are two risks right now. the first is valuation and the other is who the winner is 89% saying that relative to their earnings forecast and their economic growth forecast, stock prices are too high in their opinion. 6% saying it is too low. that explains the outlook for the s&p 500. they're looking for a lower

value than the s&p is at right now. we'll see if that ends up being correct. we see about a 6% gain for the end of next year looking at the election, 86% say that a contested election result represents a risk to the market right now. and we asked when do you think a winner will be declared. how much risk of not knowing who the winner is exists there 6% say they will know on the night of the election. 31% say within a month so those are some of the risks that the market is thinking about right now, carl. in the survey, it was lower than july, and i think that was part of the new fed strategy.

they seem to take it to heart and pushed ahead any chance of any rate hikes any time soon >> some banks seeing it be even longer thanks keeping an eye on materials this morning. the loan sector hitting a new high today looks for a record close ♪ well aven avery dennison among the big leaders over there [ engines revving ] ♪ ♪ it's amazing to see them in the wild like th-- shhh. for those who were born to ride, there's progressive. a lot goes through your mind. with fidelity wealth management, your dedicated adviser can give you straightforward advice

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welcome back, everybody, i'm is sue herera. hurricane sally continuing to move very slowly to the gulf coast. sustained winds remain at 85 miles per hour floods has begun in parts of mississippi as residents fill up sandbags to keep the water at bay. chuck shchumer blasting the health and human services director >> today i'm calling on secretary azar to resign immediately. we need a secretary of health and human service who's will look out for the american people not president trump's political interests. >> here is a little something for those that were just aching to fly despite pandemic travel restrictions, singapore airlines

is considering offering flights that take off and land at the same airport it's a way for airlines to reengage with travelers. you're up to date. deirdre, i'll send it out to you. >> sue, i can't imagine anything worse, but flying to nowhere anyways, whatever you have to do thank you for that, sue. bill gates is not expecting a virus vaccine before the end of the year, but admits that one drugmaker is way out in front to get it done in early 2021. go over to cnbc.com to find out who and stay with us we'll be talking to the head of the gates foundation this hour ans ollaboration with several compieto develop vaccine candidates we're back in two.

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welcome back, we're turning back to today's apple event. the broad impact that it will

have on the tech eco system and drawing down on why the launch of the new apple watch could be apple's most important since their debut. we have joanna stern watching these closely and has for awhile joanna welcome, let's start with the ipad >> i like what you did there with the watches >> i'm all about the puns. >> they all came after apple hard trying to take tablet share. people at large didn't buy it. what did they get wrong? >>. >> well, if you really think back, they got the apps wrong. that was the biggest issue and then we had other people try to find different ways to use the tablet so they had a race, but apple had the combination from the get go with the as and the eco system around the ipad

age the rest were good for apple's business, but also for the consumers. >> joanna, the inverse, perhaps apple got. the inverse, maybe apple got the tab let right, but we have been talking about the education space, and google and chrome book had the lead there. what do you think apple needs to do to catch up it is potentially a very lucrative space >> yeah, it is a really interesting comparison between an ipad and a chrome book. it has been cost and durability. if you are going to deploy these laptops to all of your students, you want to have a rebust type

of rugged system that will not break. ipads have not been that it is a big piece of glass that say they have made a lot of inroads. so i mean in terms of picking an ipad or a chrome book, i think there are different options and things that people are considering there. today we hear about the lower price point of the ipad. take it off, use the touch screen, and how much bet near can be than a traditional laptop >> are they focusing on high price or low price items, they

have funds to spend that they might have used on travel. >> that is a great question. i think this year we see more on the lower end from apple we see more performance and feature punch. people have to make tough decisions. do i want this feature, but i think i will have to pay more. a watch, se, a special edition watch that is cheaper than what is going to be the new series six watch 37 this is not new, but this year they can do it differently to say this is all of the goodness of what we auv here health, fitness, and the

notifications. >> let's talk about the watch, when it first came out apple didn't seem to be sure what it would be i'm not sure that people are really using all of that stuff apple seems to be doubling down on health. do you think the health concerns will be the focus here >> i think it will be a major selling point. i bought two apple watches because it had fall detection. that fsz introduced two years ago and i said then it would be a big deal and it has been i think these health features will doe that in the different demographics it is not the most port thing in

figures out if you have covid, but it is just one of the signs. also anxiety detection i can see that being very popular with everybody >> the consumers coming for apple watch right now. amazon got that ban. google trying to buy fit bit we will watch this closely as i know you will, joanna, thanks. >> john, i was going to say the new amazon twice will track your moods. we're hearing approval of a tick took deal coming today julia, i'm not holding my breath, what are you hearing >> correct, oracle being an investor in tiktok and it's

cloud supplier could come as early as today sources tell my colleagues we're awaiting word from the committee on foreign invest tomt see if they will sign off on this plan despite the previous plans. they are saying that they violate the president's checktive order in allowing for bite dances to considering it part of -- they could take responsibility for the safety and the security of u.s. data is similar to what is being discussed before the president demanded a full sale

now the deal aims to walk a fine line between meeting u.s. government requirements as well as chinese government requirements not to sell certain algorithms from tiktok. one interesting twist here is what a deal could mean for the position in washington it could push for social media companies to be more regulated but it could make them not liable in opposition to that stance so guys, this will be a really interesting one to watch of course we will be waiting for any news this afternoon. >> yeah, we will watch the tape today. some mna in the food space let's go to don. >> involving u.s. and france kraft-heinz today. they cut a deal to sell a lot of cheese businesses outside of the u.s. and a handfull of names

inside the u.s. to a u.s. based component of french dairy group in will basically get a portfolio of all of the cheeses and brands outside of the u.s. to this group and they will retain those in the united states it does not include philadelphia cream cheese but still, an important note here the 3.2 billion deal, carl, they expect to use those proceeds in majority to pay down debt. one of the reasons why you're seeing the shares moving to the upside, carl back over to you. >> very unique story there on the debt side. in the meantime a high flying name that has had a tough week is nikola. this was blow 28 yesterday we'll tell you why on the other

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it has been a rough few sessions for shared of nikola. now the fcc getting involved in some of the laelgss of fraud >> you know yesterday the stock was up after you had general motors coming out saying they did their diligence. it doesn't appear to be the case because you have the fcc looking into allegations against nicola. they say they are welcoming the fcc involvement in this matter and they put out a ten point plan or rebuttal to the allegations that were lodged last week. and their headline says it all they don't buy many into this

response we few it as an admission of securities fraud for the chairman he is doubling down they bought 1.3 million in ni nicola stock we heard a lot from him when these los angeless were first made have not heard anything sense, i suspect that we won't for awhile take a look at shares today and remember yesterday the ceo said look, we did appropriate diligence, and general motors is taking an 11% stake in nikola. back to you. >> thank you, we have not heard from truck driver milton

recently take a look at shares of carnival getting slammed today down 7%. it is the worst performer and dranking down the other cruise lines carnival also hoping to raise the offer through a stock offering stay with us

take a look at some of the vaccines today a report looking at the impact of covid on the ceo of the bila gates foundation joining us this morning. this report is really stark. showing the losses and progress because of the pandemic on everything from health to economies to nutrition and education. one metric that i thought was really stark was vaccine coverage you note that we basically lost 25 years of progress in the span of 25 weeks. how long is it going to take us to regain this ground? >> you're absolutely right it's been devastating. we have seen vaccination rates drop from 84% to around 70% which was the level of 25 years ago. the good news is we can

potentially turn it around pretty quickly if you have catch up vaccination campaigns, if you can put the investments into broader primary health and above all if you can tackle the covid menace as well and hopefully within a year or two we can catch up to where we were and accelerate upwards. overall, be vaccination coverage has ban great play of source of good news which has seen a higher child mortality over the last 25 years. it's really worrying when you see what covid has done. >> of course, as you just said, the timing to regain that ground is depending on the pandemic yourreport has three things that the world has to collaborate on in order to shop the pandemic the first is making treatments and diagnose notics and making vaccines and third making sure

they are available equitiablely to the people who need them most how would you assess the progress being made on these three fronts >> it's definitely mixed what we have is some great i ve - investments going on in vaccines we are cautiously confidence we will see some successful vaccines by the third quarter of next year. what we need to do and what the report shows with modelling is you need some equitiable distribution we have a case study ha shthat s if you gave the first two billion to rich countries, you would see twice as many deaths as if you distributed more broadly across the developing world and rich countries as well there are important efforts under way. there's an effort called the act a accelerator which a number of european countries and japan and

organizations li organizations and the vaccine alliance have been supporting but it's unclear whether that will be able to raise enough resources against global need. we're at a critical moment where the research is going well but we're not clear whether we'll have the manufacturing and distribution we need to really tackle this pandemic >> the effects of that are not just on the countries then that don't receive the vaccines really this pandemic as you report out is reminding us, we're all in this together public health is about all of us you note that governments use all available vaccine to protect only their people, they will be extending the life of the pandemic everywhere. can you put into focus what that means for people everywhere if this pandemic is smoldering across the globe that means people here can't stop worrying about the risk of it >> absolutely.

this is a classic global crisis that can only be sold with a global set of solutions. there are no national solutions where every one turns into an island and focus on their own population we're not going to shut down international trade or international travel the limitations have huge consequences the world is losing 500 billion dollar a month the longer this pandemic keeps ongoing the advantages of having a global distribution that locks down and stops the pandemic more efficiently everywhere is actually huge benefit to every one. it's morally the right thing to do it's practically the right thing to do in terms of lives saved and the economic return, it's a very, very clear economic win to make sure that we have equitiable distribution to take

tackle it everywhere >> on a personal level it can be easy to start to feel hopeless when you hear the statistics about the loss in nutrition gains. the poverty levels rising so acutely. is there something that people individually can do to help with this, if they want to? >> there are short term responses. we highlight the fact that 37 approxima million people have been thrown into extreme poverty this year that's poverty at a level of less than $2 day it's not enough to put food on the table facing real food ensecurie insecurity not being able to go to school there are short term humanitarian support we don't want to lose sight of the fact.

at the individual level you can provide direct charitable support. you can promote international efforts. we're definitely not completely discouraged. we want to highlight that these are very serious setbacks. it's the most setback in at least a generation and arguably two or three generations absolutely there is every possibility of regaining and accelerating progress. >> thanks for being with us this

morning opinion morning. thank you for bringing us that interview as we head to break, look at shares of caterpillar. it's the worst performer on the dow. the company said total machine sales fell 20% in august that was its fifth straight monthly decline of more than 20%. the stock nearly break even for 2020 up just over 1% we'll be right back. mach in this piece is talking to me. yeah? so what do you see? i see an unbelievable opportunity. i see best-in-class platforms and education. i see award-winning service, and a trade desk full of experts, available to answer your toughest questions. and i see it with zero commissions on online trades. i like what you're seeing. it's beautiful, isn't it? yeah. td ameritrade now offers zero commissions on online trades. ♪

. welcome back looking ahead to that apple ipad watch event that starts in about an hour. the big question is this a covid pull forward that we saw with a spike in growth of those products or a narrative shift?

only new products will tell us, right? >> can tim cook get us excited about those new products this is typically a big event. what kind of tricks will he pull out of his hat now that we don't have a crowd is he going to tap dance is he going to dj? we have to see soon. >> they tend to be creative in their own ways we'll watch for that let's get to headquarters and the half thanks so much welcome to "the halftime report." the bounce back and the most important question for your money. is the correction over we'll debate that with our investment economy let's go right to the boards they are facing their third positive session in a row. is the correction over