about it or answering that question, it ran hit as high as 13. it's now up 20%. that's power cnbc. let's call it that, at least that will do it for "squawk in the street." "techcheck" starts now ♪ ♪ good wednesday morning, welcome to "techcheck. i'm carl quintanilla with john fort and deirdre bosa. wall street is bullish on apple as the stock hits another all-time high today. plus, cathie wood warns of a major megacap slow down and bails on chinese tech. facebook joining in with amazon asking the ftc chair to step away from its own anti-trust

investigation. >> and meantime, carl, tech is firmly leading this rally. it was the only sector in the green yesterday and setting a new all-time high again this morning. semis boosting that action led by the likes of skyworks and qualcomm and we have some news out of microsoft more on that in a moment, jon. >> four bullish notes out on wall street. citi reiterates its buy rating jp morgan adds the stock to its focus list takes it up to 175 apple reportedly asking suppliers to build as many as 90 million next generation iphones which would be a 20% increase from the levels we saw in 2020 all this coming ahead of earnings and following a report that apple and goldman sachs are testing a buy now pay later service feature on apple pay and that could rival likes of a firm which cratered on that news yesterday. that stock is now up fractionally after falling more than 10% yesterday

meantime, the apple upswing continues up another 2% today. touching another all-time high, guys at 2.5, as you can see time for you to get bullish on apple? we have the angles covered for this you this hour the content with former amazon studios head matthew ball and exclusive with the ceo med tronic and the ceo of klarna competitor in the buy now pay later space that apple might be disrupting dee, this is a lot that apple has going on the second half of the year the attention turns to the iphone. and so often people are like, oh, it's just another incremental iphone update, but they sell still a lot of them at an amazing profit margin to me given they have so many competitors. >> it's like an apple buffet this morning, guys there are just so many things to pick at. i was going through some of the notes. one thing that kind of maybe has flown under the radar, at least

in my opinion, is air tag citi calls it out and says that it is actually a big new benefit their independent research shows that iphone users are actually buying them in four packs and speaking of margins, jon, accessories they say have even higher margins that could be a big boon and the services side, carl, with the potential, at least reported, pay later, right, that could add into that $50 billion business right as it's facing some of that anti-trust scrutiny that could be weighing on that business just feels like on all cylinders apple is firing or continues to fire, reaching that $2.5 trillion market cap this morning, carl. just incredible. >> yeah. it was really, jon, kind of a perfect storm for anyone who might be net bearish on apple. you have the iphone forecast you have some of the payment partnerships and $25 move in, what, basically six weeks. it's hard to ignore not just the impact on the broader market and we know the s&p at an all-time

high today, but some of the semi players as a group also hitting their all-time highs and for a while it was all about skyworks with the open. >> carl, let me time for an amendment that old law of large numbers, dee, what do you think, the law used to be that the large numbers couldn't get larger what are we touching 2.5 trillion on apple. i think the law needs some amendments, maybe if they keep doing large numbers, then large numbers get bigger >> not that regulators haven't been trying to sort of drill down on that theory, right, jon. we've been talking about it so much over the last year, few years but it hasn't affected the size of these companies. i know we're going to talk later to a competitor in that pay later space. so it will be really interesting to hear what he thinks of apple, you know, pushing further into payments and using that just incredible size to do so meantime, guys, we are keeping our eye on the markets another all-time high for tech our next guest notes that in

this market there are no bears-only bulls warning that volatility and a swing to the downside is coming and may come faster and deeper than anyone expects. sven hendrick, founder and lead market strategist of northman trader joins us now. good morning it's great to have you talk a little bit about why you think there is a major volatility event comes, especially as we head into an earnings season which expectations -- in which expectations are extremely high? >> hi, deirdra, good to be with you. look, when jeff bezos is launching into space next week, maybe he can take a picture of the nasdaq for us and bring it back the index has been on a non-stop run on the ninth week up what's really interesting here is that, you know, usually you would want to see an army along with the generals, but the generals are again completely on their own. the internals of the nasdaq in particular have been getting weaker and weaker and weaker

from high to high. today speaking of the current market, the nasdaq 100 hit 15,000, there are only six new highs and new lows so the trends are in tact on all of these but when you look at the underlying volatility index of the nasdaq, which is called vxn, it's actually building a very clean pattern. and surprisingly on these last new highs it has not made new lows so this pattern is building. it continues to build. and to the extent that these big cap teches that are now reporting cannot sustain new highs. and they all have outside risks. i totally acknowledge that but if they cannot sustain these new highs and given their predominance in the indexes, that may be setting up for a sizable reversal >> right sven, you're looking for a technical point of view but from a fundamental point of view you note that valuations are extremely stretched. you note higher than the peak of

the the 2000 bubble. many argue it's not the same you have more bullet proof balanced sheets, better com companies companies, better quality companies. massive cash files and the strong fundamentals. so what's that telling you >> well, it better be different this time, right look, the head of the minneapolis fed actually said something very interesting he said, you know, all my wall street friends are complaining that their trading models no longer work. you just mentioned the valuation on a price to sale space as tech is now over 7 which is higher than 2000, the s&p is over 3.2 which general trend has been 1.5 to 2.0, it better be different this time because there's absolutely zero history of any of this being sustainable. and in terms of fundamentals, yes, we have seen trillions and trillions and trillions of dollars from artificial liquidity from the fiscal side there is a natural economy beyond this and we don't know what that looks like

and it looks like if you're looking at general data coming in, there may be some peaking going on transition from a period of peak recovery growth to something more natural and then you better have a story to back these valuations up. you can maintain this obviously during this liquidity phase, the question is what comes after. >> sven, i hear you, but i wonder what's the alternative? i mean, holding cash in an era of inflation seems fool hearty to a lot of people real estate is inflated. everything is inflated if you're not going to pile into these highly valued stocks what do you do? >> well, that's a fair question. look, if you invested in these obviously right trend higher there's really no reason to sell, but be aware the change may come and we may have a sizable correction this year incidentally you asked me where to go? i had that very same question from michael sailer, from micro strategy the other day he and i had a lengthy chat about the macro economic

picture. he's a big fan of bitcoin. his answer is bitcoin. i'm looking to see what the liquidity relationship is. because so far all assets are high and continue to be driven higher by liquidity we have to yet see what the proper hedge is for this my sense is, you know, everybody thinks cash is trash market cap to gdp being over 200% vis-a-vis gdp i think is obviously opportunity to at least have some cash available when things change >> sven, there are still some who argue that, tightening is essentially already begun that money supply growth is slowing down and that the markets, although maybe not as dramatically as you might expect are starting to price that in. you don't have to wait for powell to spell this out for people do you think that makes sense? if so, how would it relate to your fundamental view of tech? >> well, as long as yields don't arise i think teches continues to be supported. we saw fascinating yesterday was

the cpi report and obviously today with ppi we haven't really seen any major move in ten-year in terms of tightening, yeah, we see it actually across the globe, right right now it's really the fed and the ecp that keep printing full pedal to the metal in terms of money supply. yes, it has dropped significantly in terms of the year over year growth but it continues to sustain as we saw again today, you know, as soon as powell approaches the podium, futures will want to rally. ultimately, again, you're ending up with a liquidity equation that's not repeatable in history. we are so far beyond what we've seen at any time in history. so this tightening relative tightening process is going to go on for years. and of course the fed right now is on the path to try to delay this for as long as possible despite increasingly voices saying they're overdoing it as we see, for example, in the

housing market with home prices continuing to rally up 20% year over year almost and at the same time, the housing affordable index dropping to its lowest ever yet the fed keeps buying mortage-backed securities of $40 billion a month. there's really no economic justification for it and the question i raise increasingly is this driven by politics or is it driven by economics? and i don't see the answer being an economic one. as you saw with steve mnuchin this morning, he's urging powell to stop. the risk is that you -- as you keep propagating an asset bubble and ultimately pops for whatever reason, you are then bringing about a tightening larger than anyone wanted to see to start with >> yeah indeed we'll be waiting to see what powell says about that in a little less than an hour finally, sven, on anti-trust, goldman has a nice note last night about tech and anti-trust. they draw parallels to ibm and at&t and microsoft in the past and they say that it took the

shares a long time to fall between the lawsuit and resolution today it's facebook asking lena khan to recuse herself do you think we're entering a period where regulatory risk actually does matter to shares >> yeah. on that note, it's interesting so far all these companies have everything on that front right? we saw with the global tax deal. you would think that, maybe pay more taxes would matter. hasn't mattered so far and regulatory, i think it's wait and see and i think that anything with teeth is actually coming that may change quickly, of course but at this point investors are -- what you say, in terms of anything that could go negative on the valuation equation. my concern general is when a trigger hits, whatever that trigger may be, and you see these divergences in markets and when you have extremely stretched charts, as we saw a number of times in recent years, downside can come very quickly

when it's least expected currently we're not even in the phase where anyone can see 2% lasting more than 60 minutes. so i think that's ultimately where these vix charts or volatility compression charts play in. >> well, sven, we can't say we have only bulls now. you gave us some good perspective from the other side. thank you so much for being with us, sven hendrick of the northmantrader. >> glad to be with you thank you. >> we mentioned earlier, we got some windows news from microsoft. shifting the model for corporate computing in the cloud era microsoft unveiling windows 365 a new way for companies to give employees cloud-based, access virtual pc from a wider array of devices like mac, ipad or even an android device. this has implications for security, for device management and for flexibility at a time when it's unclear where employees will be working from

now, this builds on azure virtual desktop, pushes further into computing as a service. we'll get pricing in about two weeks, carl. but this is part of a category and a model shift for how devices get thought of and paid for. we see apple pushing further into services. you know, buy now, pay later in a way, it is a part of that, it's like you're paying for this both the device and the service and the software that comes with it over time, whether you're a consumer or a company. you start thinking about things like churn as opposed to just an initial purchase >> absolutely. man, what a way to leverage the new environment that we're in. we're going to watch those shares as well as apple's today. former amazon studios exec matthew ball is coming up with us "techcheck" is just getting started. ♪

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stalled. price target there of 208, marginally higher this morning, down double digits since the start of the year, carl. the arms race for streams continuing with netflix leading the way. stock the flat year to date after a big subs miss in q1. trying to turn things around with content spend all against the backdrop of increased consolidation in the media space. joining us this morning with what he sees as the winners and losers in streaming former amazon chief matthew ball. must follow on twitter, matt great to have you. welcome to "techcheck." >> my pleasure. >> i would love to get your take coming off the emmy nominations yesterday about this general notion that many have that there is some sort of unsustainable bubble in spending in these streaming wars i think it's a notion you think is probably overplayed >> i think it's a little overplayed, if just because the nature of this streaming wars are so global.

it's interesting when you consider all the domestic players, those for whom we primarily focus in the streaming wars they're used to a world where there are 100, maybe 115 million households paying for paid television, excluding china 750 million exor pay tv paying homes but more broadly every year there's about 20 to 30 million homes, some estimates show there will be 1 billion households paying for television by 2030. that's an enormous tam, new for most of hollywood and one that justifies incremental spend for years to come. >> so where does that leave us right now in terms of the trajectory of not just spending budgets but the way in which ceos are thinking about mna, for example, is mgm sort of another bolt-on acquisition and do you see explosive mna in contend say the next couple years? >> the most important way to think about this is the nature of competition has strongly shifted towards content and that

certainly seems to be the dynamic today, then ultimately it's a question of where do you get the best leverage out of content? it is clear that when you take a look at companies such as netflix, they're getting greater success from their content than any other service would. would queens gambit popped on showtime or tiger queen been popular on epics, it's unlikely. as a result, anyone who owns content that is successful, global demand but constrained by the size of their service, naturally it's more efficient for acquisition. given that dynamic, the increased in content spending it's inevitable that many of these players are scooped up more effective allocation of their ip >> so matt, it seems like these dynamics, though, potentially could be at ods with each other. if content-spending bubble is overplayed and at the same time you're making a big bet on gaming in the meta/verse with your etf and that sector is poised for growth, will people have enough time to do both engage in gaming and the

metaverse as well as watch and consume the same amount of tv and shows that they have been? >> yeah, it's a great question when you look at the united states, the total share of leisure time held by television is extraordinary there are 300 million americans that watch an average of 5.5 hours per day of premium video that's excluding youtube, tiktok, snapchat, an astonishing amount we can't exactly predict what a gen z or alpha individual will do when they're 40, but it's obvious every successive generation is watching less television overall as a leisure and most reallocated to gaming and to social. >> matthew -- >> at the same -- go ahead >> i question whether investors or companies are valuing content correctly. seems to me especially after seeing what black widow did for disney plus over the weekend, content that gets people to sign up, to not churn, and then to stay loyal to a franchise, not a particular piece of content, is

so much more valuable than an individual hit. >> for sure. >> that in and of itself doesn't necessarily have a follow-on so is that being -- is that content being valued correctly >> i think if you take a look at the market in the premium they're putting on disney but also consumers flocking to that service, it's clear your exact hypothesis is playing out. it's note able when disney is planning their service now, they have six marvel cinesin matic ss this year. there's also five films releasing this year. those primarily start in the theater but then you can assume a two to three-week window on the service. and so for disney, they're not just saying this is the house of your favorite brands, they're programmed year round. that's the biggest challenge for any competitor, most of whom do not have any signature films adapted to television as yet there's no jurassic park series on peacock or fast and furious

series either but it's less clear those can support what is effectively 50 hours per year. >> i suppose that is what amazon is trying to do with this mgm acquisition, if that goes through. will amazon be successful at that it spent more than $10 billion on content last year, yet it only saw 18 emmy nominations, far below what the other streaming platforms. does it even matter that they're seeing emmy nominations or trying to play in a different space here >> i think they always matter in the sense that jeff bezos said that when we win a golden globe, people purchase more shoes it's intuitive that this is the sort of organic marketing that you can't usually get through other means. it's well understood that when you take a look at twitter traffic, buzz, i'm an investor in paired analytics published a lot of information showing that emmy wins or emmy nominations lead to a surge in demand for those shows. they're important markers. they're not the baseline for the streaming wars, but it's very

clear that when you take a look at the hits today, they're usually represented on the emmys, on the golden globes, mandalorian is up there, love craft country up there, game of thrones won six years in a row it's not an either or, but you collectively produces a must-have service. >> it's funny you mentioned mandalorian which has more nominations than just about any other show this year and it kind of reminded me of peacock and trying to bring franchises into that year-round model. i just wonder drilling down on disney, what kind of grade you would give them given what marvel and of course the star wars franchise have done for streaming. >> you mean disney as a franchise operator or as it relates to disney plus >> just as a manager of intellectual property. >> look, there have obviously been incidental hiccups the star wars franchise was expecting to release one film per year. they ended up doing five then going on a pause the early 2010s they had a

number of notable bombs, tomorrowland, the lone ranger, but it is impossible to give them anything other than an a. plus 2019, eight of the top ten films globally over the past 20 years 41 films crossed 1 billion. they have over half of those they have 80% of the last ten. it's an astonishing achievement and one they seem to be transitioning one to one television >> i could talk about it all day. i'm sure you could, too. we are benefitting from your radar on the space which we appreciate very much, matt great to see you thanks so much. >> thank you. >> matt ball ♪ i could talk about it too, carl i just started black widow last night. it's long so i had to split it up. coming up on the show, buying opportunities in the iphone supply chain. plus a firm competitor klarna apple moves farther into payments eche" bk jt "thcckisacinusa moment ♪

welcome back to "techcheck." resetting here at the bottom of the hour i'm deirdre bosa with carl quintanilla, jon fortt and julia boorstin more on facebook's request for lena khan to recuse herself. good morning here is what's happening this hour the price of food and services driving up wholesale inflation in june. the ppi index rising 1% for the month and 7.3% over the last year that's the biggest 12-month rise and at least ten years jay powell will tell congress that inflation will likely remain elevated for months before easing powell will also repeat his long-held view that the current uptick in inflation is temporary. his testimony before house committee is set to start in less than an hour. financials are among the biggest losers in the s&p 500. bank of america had results that were helped by big preserve relief

citi group and wells fargo down. and more than 150 companies including amazon, pepsi and target are urging congress to pass an update of the voting rights act now, their letter doesn't specifically mention republican efforts to tighten voting rules instead, it focuses on inequities uncovered in the 2020 election you're now up to date, carl. back to you. >> thank you, rahel. apple is preparing for a serious production boost on its next generation iphone our josh lipton has more on that demand to suppliers and the impact on those names. hey, josh. >> so, carl, for tech investors the back half of the year always does get very interesting. and one big date we always have on our calendar is when tim cook takes that stage and introduces those new iphones. now we have a new report about those new devices. bloomberg is saying that apple is asking suppliers to ramp up production of its next generation iphones by 20%. apparently looking for as many as 90 million units.

apple higher today's trade and check out some of the supplier as well. so names like tsmc, skyworks and broad come bernstein says this is good news for apple. it's a significant customer and probably representing mid teens percentage of total revenues, if not more qualcomm another important supplier to watch. i spoke to another analyst who covers that name, too. he says this should be seen as a positive for qualcomm investors. qualcomm probably gets $38 for each iphone sold combination of chip sets and licensing. this year's iphone update will be more incremental than last year's iphone 12, according to the same report, emphasizing processer, camera and display improvements in my eight years covering apple, to be honest, i have lost track of just how many times we have heard this same thing incremental, evoluevolutionary,

revolutionary. it's not sure how that correlates with actual sales the end of the day consumers still buy a lot of iphones. we'll see what happens this year back to you all. >> josh lipton, so true. thank you. going further on apple, we're going to turn back to its reported plans, perhaps to increase its footprint in payments testing a buy now pay later option with goldman sachs, that sent stocks like a firm tumbling our next guest runs the $46 billion firm klarna-a competitor in the says, ceo sebastian siemiatkowski joins us now sebastian, good to have you. what's the impact or what would the impact be of apple entering this space and what is it that keeps consumers loyal to a particular buy now pay later option >> that's a great question, obviously. i think if you look at apple getting into this space i think is a confirmation of what we've said for many years.

people should use debit cards, not credit cards don't try to trick you into overspending or evolving and all these things but sometimes credit is necessary when you shop online or if you need for a specific purchase credit can make sense and buy now pay later is a great offering because it doesn't charge consumers any interest. i think apple is now following the lead of companies like ours and others who have shown that this is the way forward in this landscape. and i think we're all there to really challenge the big credit card companies which is, $8 trillion business. i think, however, to your point, obviously, klarna has been doing this for 16 years. i was 23 when we started this company. i think if buy now pay later is the only feature in our offers then that would be a challenge some of our competitors obviously do much more than that but i think if you look at klarna as an example, we're a fully licensed bank, we offer tons of different services to consumers, debit cards, banking, full banking suite of services we offer shopping services

we offer tons of different things as well it's not unexpected to see that the offering will kind of be broader than that. >> so is that the game and the imperative then if you are in one element of this fintech space to expand to serve broader customer needs and to generate that broader loyalty we were just talking about banking yesterday and finteches and the challenge. is that what you have to do when you got so many challengers who are piling into this space >> well, i think if you look at regional banking as a space in broad, i think one thing that we believed a lot of years ago and start of directionally going for is that this banking industry has been a lot of old legacy incumbents large businesses who offered a very broad suite of products the future looks very different. it's going to be more niche. such as trading platforms robinhood, it's very it's more likely we'll see global players rather than local players.

u.s. because of the size of the market comes with slower but we see that very much in all of european markets we were operating in over 20 european markets klarna is a service with your normal everyday spending and transactions and payments. that's where we want to be there will be other trading platforms and this whole banking industry will be much more centric around the customer needs to be entirely fair, this is not an industry that has had its customer best interests at heart. their own pockets at heart so there's a tremendous shift that's going on. i think this is really the decade where we'll see that transformation of this industry. >> sebastian, we talked a lot about this yesterday on the back of banking earnings the rise of the fintech threat and jamie diamond identified big tech as a threat as well it's not unfathomable we could see apple move into greater financial services and if this is about reducing friction, how

do you compete apple has over a billion active iphones. people got more used to using iphones for payments over the pandemic and now they built a pay now or pay later excuse me feature, how do you compete with that does it raise any anti-trust concerns, too? >> it might. i think anyone who will overextend its dominant position might fall challenges from that perspective. but more important, i'm not that worried about that i believe and maybe some people call my naive, it's difficult to be good at a lot of things as a company. you can compete at specific things but try to be best at everything is quite difficult. even those companies there's a risk that they're overstretching, trying to compete in every type of services and they're underestimating how extremely specialized. because one thing that's happened in the last 20 years, this market becomes larger and larger the value of specialization increases the importance of really doing

something super, super good is increasing and becoming more and more difficult for these large companies good at all of these things at the same time. i'm just not that worried to be honest about that. that doesn't mean that you cannot launch a credit card and get success. uber launched a cred that does not mean they were disrupting the regional banking industry it's two different things. as a big company, you can get customers ch that's not the same thing as driving innovation, pushing the agenda of what those services can look for consumers and merchants a like. >> i hear your point there have been some hits and misses among the tech giants but anti-trust regulators might argue that the idea of bundling made them quite successful and other businesses perhaps at the expense of their competitors would you not raise the anti-trust flag right now if regulators were to ask you if apple moving into further financial services was somehow giving them unfair advantage >> well, i think that, you know,

yes but i think there's other ways there's some extremely interesting legislation in europe as an example that doesn't come the whole way gdpr doesn't come the whole way, but if we would regulate, if we would genuinely regulate every customer with the click of the button could take all their data and move it to another service provider, social media provider, if you would create true mobility of consumer data, that's how we're going to create competitiveness in the space and i think if you look at it, apple says we're going to protect all your data. we're not going to allow it to open up, that in itself may be a problem because i think in general consumers should have the right to move their data with them because then it won't be about who is hoarding the most consumer data, it's about who provides the best value of quality of services based on the data that the consumer decide to share with that company. then we have great competitiveness in the space i'm not worried about trying to go after the big giants. make sure that data can flow and

the consumers can move data with them that's how you create competitiveness in the internet in my opinion. >> a lot of industries going to have to watch apple's announcements at the end of this year sebastian siemiatkowski, ceo of klarna, thank you. >> thank you so much. we want to mention klarna three time cnbc disrupter. sign up by visiting cnbc.com/disruptersnewsletter, dee. after the break, cathie wood warning of a valuation reset we'll tell you for which stocks may or may not surprise you. peloton price target goes down those shares under pressure down 4% wedbush says the company embarked on the next leg of the growth story and they now have to create their own momentum post-pandemic. the stock updates for three straight weeks of losses we're right back

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warning for some of the falling chinese stocks cathie wood is known for buying dip, but this time she is selling. the funds flagship ark

innovation etf china weight down to less than 1% from 8% as recently as february ark's next gen-etf cut its stock. dd is down 25% since the beginning of the month last night on a web cast wood called it a valuation reset and that she expects many of the stocks to, quote, remain down. jon, just looking at some of the contributors and detractors in q2 for the main innovation fund, roku and shopify winners but buy du and coin base did hurt. >> they did. you got cathie and sven, often two different voices on these markets. cathie, carl mentioned, tending to buy the dips or stay with the names she picked this time not doing that but which way do you think this market is going is a question that investors really have to grapple with and what do you do with that capital if you don't pile it into -- do you help

people buy now pay later that's what apple and some others are doing >> it might be surprising to some to see aunt cathie capitulate we're more custom to her doubling down when we see weakness, what we have been talking about and may tell you that what's going on in china, so little transparency, it's hard to know where the bottom is and even though we have seen some of these names rebound a little over the last few days, you never know what's around the corner for beijing and the ccp so interesting her holdings the weighting of chinese intranet stocks in the flagship ark fund plunge to less than 1% it was at around 8% as recently as february, carl. so that's a fairly substantial move and perhaps stance on chinese tech >> yep >> yep well, if you want to hear more of those bullish takes, later today, don't miss cathie wood on "closing bell" at 4:00 p.m. eastern. we have a lot more

"techcheck" including a check on facebook straight ahead. stay with us ♪ ♪ ♪ cisco. the bridge to possible.

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we have a lot more ♪ the latest in tech's anti-trust battle with regulators facebook backing against ftc chair lena khan. julia boorstin has what it means. another tech company pushing back on khan. >> that's right, deirdra. >> facebook is seeking the recusal of lina khan judge rejected the ftc's previous complaint now with the deadline to file a new complaint coming up at the end of the month, facebook is arguing that khan, who has written extensively about how anti-trust laws should be applied to tech giants can't be impartial. facebook writing in its petition to the ftc, quote, when a new commissioner has already drawn factual and legal conclusions

and deemed the target a lawbreaker, due process requires that individual to recuse herself from related matters when acting in the capacity of an ftc commissioner. facebook telling us in a statement, quote, that chair khan has consistently made well-documented statements about facebook and anti-trust matters that would lead any reasonable observer to conclude that she has prejudged the facebook anti-trust case brought by the ftc. we reached out to the ftc. they have no comment on facebook's filing and this filing, of course, comes just two weeks after amazon filed a similar recusal petition it does also face multiple ftc investigations we also reached out to google. it faces similar anti-trust scrutiny asking whether they plan to file something similar now because this deadline for the ftc to file a new case is coming up, facebook's filing this morning could force khan to address the broader question of whether she plans to recuse herself and the stakes are high in this case because the

commission, with her is three democrats and two republicans. and those two republicans voted against the lawsuit filed against facebook back in december so if khan sits out this case, there likely would not be majority vote to sue facebook. we spoke to a professor of anti-trust law eleanor fox she tells us that policy bias t policy bias is not a basis for recusal or virtually all commissioners would be recused from everything. we'll see how it shakes out, deidre >> yeah, we will feels like a playbook emerging here, julia. quick one for you, though, is it getting more difficult for regulators to argue this monopoly argument especially we got the headline this morning that tiktok has become the first non-facebook app to reach three billion downloads. >> yes and new data out of censer tower, they are looking at tiktok plus duay, the chinese version of tiktok, surpassing

three billion downloads what's amazing about this statistic is only other apps to have gotten that many downloads are four fischer appears, the core facebook app plus messenger and what's app and instagram remarkable to see that fischer has such strength but also, deidre, if tiktok is making gains that's a good argument for facebook to draw upon defending themselves here. >> yeah, it's a point, although we know byte dance is facing scrutiny. >> hard to keem them strait. so many cross wednesday. meantime jpm says marvel on the broadcom with the top spikes in the semiconductor they also like intel, nvidia and micron more "techcheck" after the break. me after time. gold. your strategic advantage.

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after the the break. another update on apple. medical and health tech ambitions. what the ceo of med tron iks has to say plus miss an episode of "techcheck," it's a podcast. download and subscribe anywhere you listen to podcast. one more quick break and plus the fed chair set to begin testimony in a few moments. stay with us

- [narrator] dearest noodle houses and hot pot hotshots,

thank you for the stir fry that gets us all stirred up. whatever you can serve, we'll proudly deliver. (lively music) apple and microsoft both in the headlines today with big launches for the iphone and windows coming later this year and the two companies also making big investments in medical technology microsoft through the plan $19.7 billion of nuance. apple through the development of the apple watch. now, fortt knox 101 i spoke exclusively to medtronics ceo, medtronic the top global medical device technology. he said the technology is becoming more like consumer

tech. >> the technology advancement in the last 18 months to two years, whether it be miniaturization ever electronics, robotics, you hear about battery technology, people equate it with that but there are batteries for pace makers and things, they're smaller, last longer then you add data and ai, all these things coming together a lot -- it really changes the game and we see a paradigm shift for the medical technology industry. and our place in health care >> he told me he is bullish on partnerships in the wearable space and using detail data and ai to empower physicians and patients to make better health care decisions >> we have a device called link here which the size of a paper clip, goes under your skin not a therapy. it's monitoring multiple parameters around your

cardiovascular health. heart rate, heart variability and other things like that it's always on, right, because it bluetooths to your phone, into the cloud always on, the sensitivity appear specificity of the data allow physicians to make decisions. and, you know, for us to get these type of devices to be more ubiquitous, lower cost, continue to get them smaller, and what i call put the tech into med tech, bring data and ai into med tech, into health care in such a constructive way, it's a very unique position. it will lead the partnerships of wearables companies like apple and partners like that. >> you can catch the entire 45 minute interview online on tech check's linked in page you hear about this technology call, also, about his his hockey skills and his management and leadership journey i love the interviews. >> well, i'm always reminded,

jon, of an interview that tim cook gave when asked about what he thought apple's legacy would be long-term he definitely talked about the health secretary are weier watching that. that was an eye opener on that meantime, awaiting the fed chair. breadth has deteriorated in the first half session let's get to the fed chair and the judge. >> all right, carl, thank you very much. welcome to the "halftime report"" i'm scott wapner we bin are begin with breaking news the fed chairman set to testify any moment now we'll take to you the virtual hearing once the opening statement begins the chairman will say the key is a ways off from achieving the committee goal, adding that inflation is likely to remain elevated ford months before moderating steve liesman with me today with me along with three of my investment committee members stephanie link stephanie firestone. joe. we're taking you to the hearing as soon as it begins steve liesman, i think the words