our john fortt in barcelona. and as jonentioned, one of the highlights here is zuckerberg, showing up to speak about vr. zuckerberg posted this picture on his facebook page after the event, which has been widely talked about on twitter. you see zuckerberg coming down the aisle, everyone in the house wearing headsets. is this the future, john? >> i'm reminded of the neil stephenson line where he says "the sky above the port was the color of television tuned to a dead channel." or even, you know, "snow crash." that book about the met averse we all live in. zuckerberg is building a social vr team. that's what he announced there on the samsung stage. so it makes me think we're going to have some 3-d world we're all walking around in, as our overlords walk past us, all jacked into these systems. >> it's an overlord nature of that picture that has drawn some criticism to what happens when everyone is in their own world, created by these leaders, whether technology or governmental leaders. and you're not really aware of what they'

jon fortt is there on the ground with intel's ceo. take it away. >> thanks, sara. here with brian krzanich of intel. we will talk 5g, virtual reality and more. i want to start off by talking security. your thoughts about this situation between apple and the fbi about opening up a back door into apple's security system to solve a crime. >> first, welcome to the intel booth here at mwc. i should probably start i'm not an expert on apple ios, and i haven't seen the actual letters, but the basic answer is i don't think any company should be forced to build a back door into its products, on the other hand we have to work with the federal government and government agencies to protect people and -- when they're properly subpoenaed, provide the data. there's a balance between those two. i'm absolutely not in favor and don't believe we should do backbobac backdoors and be forced to do backdoors, but maybe working with agencies we can get them the data they need to protect the citizens from the terrorists. this has escalated in a public way. >> i think it's best when the eng

. >>> welcome to "squawk alley" for a tuesday, jon fortt, kayla tausche and myself at post 9 along with investor jason who we're going to check in with in just a moment. some moderate chop as a pilot might say, dow is down about 97 points. we're going to get to jason in a second. first morgan brennan with some breaking news. >> carl, that's right. railroad headlines for you. canadian pacific planning to abandon its proxy fight for norfolk southern according to dow jones, also mulling proxy revolutions to push norfolk into takeover talks. in other words canadian pacific considering a potential shift in strategy to push the eastern railroad to engage in these takeover talks. this, of course, comes on the heels of three rejected offers over the past few months. the most recent being in december. and it really -- it's a bit unclear about how cp's ceo hunter harrison, the street fight, the strategy is now going to shift. but again, hearing that it is going to shift according to dow jones. you take a look at the stocks right now, canadian pacific is up 1%. norfolk southern down half a percent

jon fortt and kayla tausche at post nine. and

and our jon fortt, as we said, is in barcelona, live at the mobile world congress. i saw your conversation earlier today. with intel's ceo. about where he stands on the issue. and i wonder if that is sort of the norm of what you're hearing there. >> well, you also just heard from ralph de la vega here in barcelona sharing thoughts saying that it is congress and not the courts where this should be decided. that echos some things that tim cook said. the ceo of intel, probably the top ranking tech ceo, to say something very direct around how he felt this should and shouldn't go. so for those who might have missed it, take a listen. >> i think there's a balance here between those two. i'm absolutely not in favor and don't believe we should do back doors and be forced to do back doors. but there probably is a way that working together with the agencies, we can find a way to get them the data they need to really protect the citizens from the terrorists. and i think it's best when the engineers get together and actually solve the problem, rather than the escalation. >> rep

jon fortt and kayla tausche at post nine. and kara fisher joining us from san francisco. good morning to you. another ugly week despite some solid gains today. dow's up 175. the nasdaq is now down almost 14% for the year. rich wong of xcel telling "usa today" saying, i personally don't think the environment is anywhere as close to as difficult as 2008 or 2009 or 2001, but try telling that to people in tech, kara, especially given the losses in f.a.n.g. how is this playing out in your view, both from a sentiment standpoint and more practically? >> i think practically, people feel good about it, odd enough. in a lot of the places i'm going, a lot of the vcs are happy about it. a lot of people think there was too much money rushing in, especially from the hedge funds and the larger institutional shareholders that were shoving the prices up enormously. i've been hearing this for a while from a lot of prominent vcs, they couldn't have been compete. a little like san francisco real estate, it suddenly got crazy crazy, and then goes back to just normal crazy. so i think everyone

. >> ted, it's jon fortt here in new york.o this argument, if you will, about it being dangerous to have this software exist. because a lot of people have said, well, just create the software, keep it in cupertino, let apple be the only ones with access to it. is apple concerned that the people who create the software, it's still in their minds, and they could recreate it somewhere else if compelled to? are they concerned their own systems could be hacked or might already be infiltrated, say, by foreign governments? what -- why is this so dangerous? >> well, our engineer laid out in his affidavit and the court filing we made last week, software and code is persistent. it's not going to go away, even if apple were to destroy it after the fbi had access to this iphone. and the other thing is that other governments, state, local, foreign governments, are going to come back and say, do it again. and so it's not going to disappear. you can't make this software go away. and as you all know, data is under assault. criminals, terroris

let's send it over to jon fortt with a look at what's coming up on "squawk alley." >> we're still watchingrkets. the nasdaq for once not underperforming the dow and s&p. what does that mean? also, media stocks, viacom plummeting down 13.5% after a revenue miss. disney at 52-week lows. what does this say about media, which had been doing okay, and then finally the cfo of red hat is going to join us, enterprise software's been taking it on the chin. is it overdone? we'll see what he has to say. all that and more coming up on "squawk alley." e wants to stay . i don't know even where to start with that. first, let's take a look at your financial plan and see what we can do. ok, so we've got... we'll listen. we'll talk. we'll plan. baird. this just got interesting. why pause to take a pill? or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex do not take cialis if

we're joined by brian weezer of pivotal research and our very own jon fortt. amir, let's kick it off with you. the numbers are staggering. why don't you rub throun throug us. >> these are the numbers marissa does not want you to see. you have the three most important products, mail, the home payment, and yahoo! search. they're tanking. they've had double digit percentage declines in the number of daily active users over the past year. they are not making the transition to mobile very well, and it's really, really hurting the business and contracting the business, and it really does not make much of this asset look great to a potential buyer. >> brian, it almost seems like it doesn't make a difference what marissa says at this conference today when the core business is on the decline. we're really looking at a business that's like a melting ice cube. >> that's absolutely correct. there's almost nothing the current management can say that really has any bearing on the business at this point. it's a question as to how long they will be around, not whether they wi

jon fortt, as well. us his take on the market swings next. >>> let's get down to the new york stock exchange. talk about a birthday hangover, jim. >> what a show you've had this morning. i listened to being a ca being and said when we see they're yielding 3 and 3.25, are we really supposed to run from them? futures say you must panic. never played out well for me, but i'm just listening to you and thinking where is the horrendous u.s. story. asia horrendous, russia, europe. i'm having trouble crafting the more horrendous u.s. story. >> what does janet yellen need to do differently today if anything? >> the questions yesterday were much smarter than usual. how do you factor in the collapse of allies like a brazil, a huge decline in the p peso, should we worry about these things. i need them to ask her what should we be worried about because the sanguine nature of this idea that we're at 4.9 is very, very 1976 economics. the classes that i took are somehow not valid. and it's a shame because a 69-year-old

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