York stock exchange. Very monday morning and its going to be a very busy week were going to start with some talk about technology and antitrust. Our next guests latest column says, are we finally getting serious about big tech monopolies is it too late cnbc contributor kara swisher joins us this morning. Good morning, kara good to see you. Hi. Good to see you. You ask, are we finally getting serious about mo monopolies and then you go on to say, youre not holding your breath and no one in Silicon Valley is holding their breath no, were not theres been so much suggestion about the ftc and the justice department, i just wanted to point out some information for them about how much of a cheap date consumers have been to these Tech Companies and whether we need morecompetition. Its something ive been talking about the idea that we should have a new social network, that we should be able to have a new Search Engine and have some choice and theres very little choice in many, many too many sectors. And so what is the government going to do about that, at some point . And so since theres been a lot of talk about this happening, i want to just kind of review the idea kara, its a weird time, to me, because at once, we have these potential monopolistic giants with amazing power, but then weve got them competing with each other, as never before and one of the big challenges is, how do you define a market, right . Because if the market is social networking, then facebook is absolutely dominant. Ifits targeted digital advertising, well, then youve got facebook and google and a few others and then the market suddenly looks very different im not sure regulators or even the public at large knows how to define what the market is, so we can get to determining whether somebody has got monopoly power. Well, i dont think theyre competing that much. In terms of maybe cloud computing, certainly, theres several players in that case but in social networks, theres just one literally, if you look at the numbers but is social Networks Even is it a market of course, it is. Of course, it is it doesnt make its money from social networks, it makes it from targeted advertising, which google also does, on multiple fronts. Its totally different. I think the point the point being, like, google right now has 88 of the Search Market that is a large amount of the market and therefore, no one is going to create one. Same thing with social networks. But my point was that there hasnt been a new one in these areas for many, many years and we have to think about what that means. I did a really good interview with steve huffman, the ceo of reddit and theyre small in dealing with all of their various problems, very similar to other social networks and he and other companies are looking forward to being able to be more kpre competitive, where they have more ability to break into the market and i think that we all feel that its a very different time and the law has to catch up with whats happened. I think were work on laws that are quite old and have not changed since these companies have come into being kara, im glad you just brought up that interview with huffman, because in your article, you also noted that he said that the size of many of the big Tech Companies doesnt necessarily help them combat things like hate speech, as well that got my attention, because its so opposite what weve heard from those big Tech Companies. What else are those Big Companies going to say theyre struggling at reddit theyve done some significant changes. Its not perfect at reddit, but they quarantined the donald area because it had become violent, they think about throwing it off. They have a much bigger staff and are figuring out ways to deal with it i think more competition brings more ability for companies to innovate on major problems, and thats just one of them. Hate speech is one of them disinformation, fake news, not a lack of privacy. What if there was a Search Engine that focused only on privacy . There is one called duck, duck go, but it has a very, very small percentage of the market, given how big google is. So more competition comes from the ability of companies to get around these larger companies. I mean, this is not new. This is not a fresh idea so the fact that you do raise this question of whether its too late in terms of regulatory action, how would we know there it is or not well, i dont think it is too late i dont think its too late at all. It took forever. I was just this week up at microsoft. And i remember how long it took between when people realized there was an issue with microsoft and until there was some Government Action and i think most people, including the microsoft people can agree that a lot of what happened to them during those years made them a better company. You know, its being run beautifully by sasha nadella right now and i think a lot of those lessons they learned then are part of its success today. Something else. Who would have thought we would be saying that, but indeed, we are. Moving on, disney flexing its muscle at the Box Office Yet again, setting some records for the performance of a film studio our Julia Boorstin has more on that from los angeles. Julia . Well, john, this weekend, disney broke its own record for the alltime best annual Box Office Number and its only july and its already broken that annual number. Now, bolsteredby lion king, which has now grossed nearly 1 billion worldwide, the studio has set a new record for the biggest studio gross in a year, 7. 7 billion now, disneys response for the five biggest films of the year, plus it has a piece of the sixth. Sonys spiderman far from home. Whats most remarkable about this is disneys dominance is expected to continue it has frozen 2 coming up in december and star wars, both expected to hit 1 billion now, while sonys once upon a time in hollywood was Quentin Tarantinos best opening with 40 million at the box office, that is dwarfed by disneys numbers and its in the rare category that disney does not tackle, the adult drama. The challenge for the movie industry is that the Domestic Box Office is still down nearly 7 yeartodate as the explosion of free or inexpensive content at home from netflix to esports raises the bar for how big both brands and budgets need to be to leave their home and go to the movie theater. As for disneys success at the box office this year means for this company, analysts are still focusing on what the coming streaming launch is going to mean for disney moving forward barclays is writing that while they should benefit from the movie cycle, another price increase at parks and carriage negotiations will face tough comps as a result. Therefore, we believe the stock could be side waist for some time until the disney plus launch later this year of course, the real question, though, is how disney uses its theatrical success with these megafranchises to drive more subscribers to disney plus and the kind of implications that could have for the Digital Business down the line guys, back to you. Theres a lot of buckets to watch on disney. Julia, thank you so much kara, it is the first time that a studio has had the biggest five movies of the year. And it was the weekend of the fortnite world cup and that kind of shows the way in which theatrical releases have more competition, kara. Absolutely. Fortnite, my kids play fortnite, although theyve gone off of it a little bit. Maybe its just the summer but whats really interesting about disney is in terms of hitting on all cylinders here, bob iger really is one of the most talented executives around. And i think whats interesting, we talked about this on pivot last week. Scott galloway, who i did that podcast with, before the lion king opened, he says, no matter what the reviews are, and the reviews have been mixed, it looks a little creepy, i have not seen it, that people will do well, because people trust in the disney brand and the disney experience so wherever you try a disney product, largely, youre very satisfied with it, especially if you have kids. And you know, i saw all the marvel movies, every single one of them. And theyre beautifully executed theyve got star wars. Theyve got so many brands and i think it will be interesting to see how they do in this streaming platform, because their history online has been pretty spotty and it so, will be interesting to see if they can take those learnings from previously and use this incredible trove of content and marketing savvy and make it into a success kara, i actually think that disney is a good example of the dynamic that we were talking about just a couple of minutes ago. I mean, writ large in digital, in content, nobody is thinking about disney as being a monopolist but if youre in the theater business, with the kind of year that disney is having and the fingers that it has in various spots, you might be getting concerned about its market power, just in that narrow theater market, right . Yeah, well wich, i havent th of that. Thats very interesting. This is a global business, obviously. So theres competitors all over the world. And there are things like fortnite and there are things like mine kraft, there are things like youtube. You know, i just have anecdotal thing of watching my kids. They spend much more time on youtube that they do at the movie and things like that so its an interesting time and youre right, in the traditional sense, they really do dominate but in the Entertainment Market, i dont think you feel or peoples time market, i dont know if its the Entertainment Market anymore wing they have plenty of competitors and lots of choices theyre just making content people love, which is really fascinating. Just to even dig into that a little bit further, kara, when you look at the five biggest movies of the year that are all disney, four out of five are either remakes or sequels and the fifth is also based on content that started as a comicbook series as well and i think it just begs the question, where is the original content being created and where is it going to skit seems like its not so much at the box office in terms of whats driving sales there well, its interesting. My kid yesterday, he hasnt seen lion king, hes 14 years old, hes gone to all the disney movies when he was growing up and he was like, why cant they think of a new idea . Im like, what do you mean he said, you know, they made the lion king and now theyre remaking it. And the same with aladdin. It was interesting that he wanted more new content from them, which i found that really interesting for him to say that. Im sure theyve got plenty in the palestinipeline, as well finally, kara, over the weekend, you followed through on an earlier promise. Selling your car you said, i will die before i buy another car. Not because youre sick, but because you think this is going to be like owning a horse. Yeah, i felt so good all weekend getting rid of it. It was incredible. And then i was without a car i sort of needed one a couple of times, but i figured out workarounds and stuff like that. So im going to really explore these carsharing services, not just uber and lyft, but cartogo and things like that it doesnt mean im not going to drive a car or in cars, i just feel like car ownership is something of the past. I got a lot of pushback from people from the midwest and in rural areas and i totally get it but many years ago, i did a piece, 25 years ago saying, nobody will have a phone in their house, there will always be mobile phones and i got a lot of pushback from people in rural areas who said, we dont have coverage, we dont have this, we need our land line phones. Im definitely an urban person and on the cutting edge of these things, but the idea of owning a car, smaller and smaller amounts of people are going to actually own a car versus use a car well see how it goes. I dont know kara, have you calculated it out . Do you have any sort of gauge yet on what is going to be the less expensive option, either owning a car and all the overhead associated with that or using some of these Different Services i dont know. Im going to try it out. I definitely know i was very happy to get that pile of money for my car, i made a lot of money. And then i got rid of my insurance and the costs. And it just, you know, i have that i added up that amount of money and im going compare it and i think write about it to see what i actually spend. And again, i live in an urban area theres lots of choices here in terms of public transportation, walking, and all kinds of things and its more convenient but ill find it really interesting to see where the problems are and where theyre not. But im excited. I was very excited to see that car go and i am not going to be buying another car again as long as i live and i hope a live a really long time i hope i do. Bill gurley used to come on our show and saying they would send him checks from their car sale, thanking uber essentially. Who would you credit for that . I dont know. I dont use uber as much carl, ill thank you thank you, carl. Youre welcome. Anytime, kara. Im not going to thank bill gurley, for sure im definitely not going to be doing that it reminds me a bit of tim cook saying that the ipad was the future of the laptop when oh. I think she jumped the gun for some people, arguably, the laptop was the future of the ipad no, no, no, the phone is. I use my phone, jon. The phone is the future of everything the use of the phone ipads are big if youre 10 years old. I can tell you that much kara, really fun well see you soon ill be walking home. Ill be walking home great up next, sprint and tmobile are merging, but what does that mean for you boost mobile founder Peter Adderton joins us next on that and the implications for 5g after the break. Dont go anywhere. Hobbs shaw. You want a war youve got one. [ psa by jay z ] were never going to survive their firepower. Were going to need cars. And guns. Oh i can handle that part. I got your back brother. And me yours. [ laughing ] [ screaming ] welcome back to squawk alley. The number three and number four american phone carriers, tmobile and sprint, are one step closer to merging following the dojs approval of the deal on friday. Dish acquiring several of sprints assets as part of the agreement, including boost mobile so what does the new combined company mean for the American Consumer and whats next for dish joining us now here at post nine is boost mobile founder Peter Adderton thanks for being here. Thanks for having me. So stocks down almost another 4 today a, what does this mean in terms of the assets that dish would be acquiring and b, can dish actually take those assets and be able to truly build out a successful fourth carrier in the u. S. Its a great way of putting it because there are two distinct issues here. The first issue is, did the doj and the ftc set aside dish in order to execute did they give them enough of the assets thats required to be a true force competitor . My issue is, yes, they did we asked of 95 of what they gave to dish is really what we asked for. If you look at the nbmo agreement that they actually have, if you look at it in detail, is something youve never had here in the u. S. Before they truly will act like a Network Operator they can control that Customer Base and theres a real incentive for dish to really Start Building out their own network. Because that wholesale deal allows them to switch between the wholesale network, which is the new tmobile and 5g network and their own networks the economics of an nbo are nowhere near as good as the economics of a Network Moving those customers and switching those, which is something which i never thought you would get in this country, so i think youve got to give the doj a pat on the back for that because a lot of the conditions that they got, that dish got, are things that youve never had in this country before, and its things that really do allow them to be able to compete. So you separate that and the other point that they brought up is this the network, or the company that can take those assets and create that force competitor and to me, if i look at what dish has done in the past, theyve started. They started with three guys in a shop, you know, literally in one storefront and built a very large video distribution company. The argument is that they have been able to build things before but were in a very, very different space now. So i think whats going to demonstrate to me is how do they get out there and demonstrate over the next period of probably two to three weeks, im sure that masa and john legere over there have got lockjaw from smiling all weekend. This is an incredible deal for them they got to set up who their third competitor was dish hasnt exactly taken over the world when it comes to tv so now theyre going to get into the Wireless Phone business . Thats the part that gets to me, executing in this business is incredibly hard, the marketing is expensive, the backend systems to manage the kind of growth they would need to see for customer onboarding, this is tough for anybody to do. But what a sweetheart deal if this goes through. And i think thats the part that we were obviously frustrated about we obviously wanted a bidding process. Because we gave them everything they need to be successful, but only gave it to one person so did they choose the right person i guess time will tell thats a key point you made you have come on our show in the past several months and said you were interested. In coming out and putting a bid in for these assets and certainly, youve seen other parties that were interested, as well are you saying that there was ant bidding process . And if so, does that mean the government basically chose the winners and losers in this i think tmobile and sprint chose the winners and losers in this because i think it was for them to go away and set up the fourth competitor if you listen to whats being said, the doj pretty much said to them, unless theres a fourth competitor, tmobile, youre not going to get this merger through. They left it to the person whos going to compete against them to create that. I would love to set up my own competitor i would love to choose who that was. But i think all eyes need to be put back on dish now i think youve got to let sprint and tmobile go away now theyve done their deal and are off doing what they need to do i think the pressure needs to be on dish, to see what dish does in the shortterm, to raise that point that you raised, which is, how do they overcome that and show that they are serious about this and this is not just another step to them trying to get out of their issues with the fcc. Im curious to hear you talk about doj, what they did here. And im wondering if any of this is obstructive to how they may view large cap tech as opposed to just telecom. Thats the interesting point. I will tell you, that was a very odd merger process the fact that the fcc came out first, the fact that the ags, you know, sued to block, and are still continuing to sue to block, even though the doj has come out were in very, very strange times right now when it comes to this so i think its very, very hard for anyone, and anyone who is following this merger, as you guys were and every other media outlet, this took 11 turns to sunday the next variant well see from the doj, were in very unique times and in unchartered water here when it comes to what the doj will do with big tech. On basic questions, right basic questions you would play out the merger, the ending would not be anything like what weve seen and we have not seen the ending yet, were like three quarters of the way through so well still wait to see where the ending goes. And i think its on dish to prove that theyre serious about this and i think that, you know, based on their pedigree, they have, lets bo honest, they have built a Successful Company amazon, google, and facebook money is probably going to factor into this somehow or people will expect it to. Because phones are an area where all three of these megacompanies have failed to some degree facebook, phone, didnt really happen amazon fire phone went nowhere google has only got a tiny market share with its phone. Do you expect them to kick in to help dish or whomever else to actually fund the marketing for this network well, i think they should i think if youre smart, you would come in and say, listen, heres a player that needs help. Let us come in and lets be able to help them but theyve got their own issues with who theyre dealing with, so theyll make sure theyre careful when it comes to the doj. These guys do like to control things theyre not good at minority shareholders they like to control and own things i think thats one of the dilemmas i like to face, youre now working with dish as a partner as opposed to owning and operating it Peter Adderton, thanks for joining us at post nine. Thank you very much. As we head to break, tech continues to soar to alltime highs with the nasdaq coming off its tenth record close of 2019 here are the names leading that index in todays session, mylan, nxp and fiserv were back after a quick break soft music when i see obstacles, i create opportunities. When i see adversity, i find a way. When i hear never, i say now. [announcer] Southern New Hampshire university is education made to fit your goals with over 200 degree programs, flexible class schedules, and some of the lowest online tuition rates in the nation. cheering so when i face barriers, i can break through. [announcer] breakthrough at snhu. Edu. So, every day, we put our latest technology and unrivaled network to work. The United StatesPostal Service makes more ecommerce deliveries to homes than anyone else in the country. European markets are set to close in just a couple of minutes. Seema mody has that. Seema . Hello, jon. European stocks are mostly higher, led by the uk stock market, up about 2 and its really being driven by currencies investors closely watching the uk pound, hitting its lowest level since march of 2017 after the new prime minister, boris johnson, hardened his stance on a possible nobrexit deal. Thats just three months until the uks departure from the European Union were seeing a fresh twoyear low for the uk currency. Lets also talk beer a big earnings disappointment from heineken. The company blaming bad weather in europe and higher costs related to aluminum cans as well as ongoing currency headwinds. Shares of heineken are on pace for its worst day in four years in netherlands the stock down 4. 5 . Although, for the year, shares of heineken have had nice runup, about 24 , but trailing its peer, anheuserbusch, which has risen 50 . All right, meantime, busy week for Central Banks its not just the fed, we had the bank of japan decision coming out tomorrow and the bank of england meeting on thursday no policy change expected at those two meetings, but the growth forecast for those two companies will be watched very closely, given the larger focus on trade tensions and brexit on the economy. Carl, sending it back to you all right, seema, thank you very much, seema mody. Lets get to sue herrera across the room over there and get a news update. Sue . Good morning, carl. Good morning, everyone heres whats happening at this hour President Trump lashing out at the reverend al sharpton, calling him a con man and a troublemaker who hates whites and cops in baltimore, sharpton fired back he attacks everybody. I know donald trump, hes not mature enough to take criticism. He cant help it hes like a child. Somebody say something, he reacts hes thin skinned and not really matured that well. The utility blamed for a serious of gas explosions in massachusetts last september has settled all class action lawsuits for 143 million. Columbia gas of massachusetts and its parent nysors announcing the settlement this morning. And taco seasoning sold at walmart is being recalled due to possible salmonella contamination. The 1. 25 ounce heb brand reduced social media mix being voluntarily recalled by Williams Food both have best by dates of all2021, so check your cupboards. Thats the news update this hour back downtown to squawk alley. Morgan, back to you. Sue herrera, thank. When we return, between the president s charges over twitter and tomorrows earnings, a lot to talk about with apple what should investors expect this quarter find outft a aer quick break dows near session highs of 77 points Apple Earnings expected tomorrow after the bell. And thats against the backdrop of the president saying hes not going to offer apple relief on tariffs for parts for its mac pro that are made in china, while saying he expects apple to build a manufacturing plant in texas instead. Joining us now to discuss is evercorpss apple analyst, amit darnayani. Good morning good morning. First of all, the mac pro is a really expensive lowvolume computer that in the grand scheme of things doesnt particularly matter to apples earnings so lets get that out of the way. But these trump tariffs and china do, especially when it comes to the iphone and the upcoming launch. Do you expect to hear much about apples thinking on that in this upcoming call . How much hinges on it . Yeah, you know, i would say, broadly, china, china tariffs is one of these things that could help expand the stocks whats happening from a trade basis impacts apple, but the levels its at right now, most apple products have been exempt from tariffs so far. The debate will be when list goes active, what happens to apple at that point. So so far, they have kind of skirted all the tariffs. List four is the big one to watch for. So far, theres no update on that, but thats the one you worry about for apple. And last quarter, when tim cook talked about what went right, he talked about kind of trade tensions easing up and that improving, from what i recall, the conditions on the ground in china. Then right after that, things god bad again. How much is that going to factor in yeah, when things get bad, they got a little better and now kind of back to square one with the tariff issues. Our sense from the data we have seen on a monthly basis, one, on services, theres been a pretty big acceleration of services and aeps a apps and revenues out of china on the iphone unit data itself, the months of april and may were fairly decent. And the month of june got rewarded back. So i think units, its a bit more of a mix commentary on services, china will be a big positive tail wind for them. I realize the services story continues to grow or has been growing in recent quarters, even as iphone sales have lagged. Still, the iphone is still such a big part of revenue, how important is this next upgrade cycle to the company yeah, youre being generous by saying lag, by the way. Its been an outright decline, close to double digits so far. So i appreciate lagged. So you know, iphone is mad and theres no way around it the bigger excitement will be not the iphone that comes out this fall, but the 5g iphone and what that could do to the model. I think in the next iphone, iphone 11, the debate will be, units will be down a little, i think thats exactly but what can apple do have a pricing perspective or a marketing perspective . I think that will be a focus but our expect, iphone revenues will be down 4 to 5 with the next iphone launch as well are you saying we could be talk about, instead of a 1,000 phone, like a 1,500 phone no, i think iphones the price points will be the same. In terms of pricing, my take was, do they up the promotional activity more aggressively, apple itself, and give you better rebates on it but i think this a price point basis, these phones will be the same price as the iphone xs were last year. Why do you have an outperform rating on this stock why are you establibullish on te right now . One, services continues to be underappreciated that business will keep accelerating second, Gross Margins will keep inflecting higher from services. And the fact that Commodity Prices are coming down and theres leverage in the model. You know, the thought is that apple does have tiny bit of cash, 163 billion on the balance sheet, and that gives you a lot of protection. But does the margin story concern you if, indeed, they do get, whether you want to call it promotional, more aggressive on their tradeins, trying to accelerate the upgrade cycle, white that offset the benefit that they would get from Services Margins you know, its a great question and i really do think that what the stock does on this Earnings Call and beyond may just hinge on that answer or what happens, really our gut, you have two big tail Wind Services and commodities and prices coming down dramatically those can help you buy 130 to 150 basis points on the gross margin line. The headwind is exactly what you said it is the promotional activity and also fx going a little bit against them right now but i think how those four things play out is whats going to drive it. Our take, marginal expand, in the 38 to 38. 5 range in the next few quarters. All right, amitt daryanani, thanks when we come back, the results of the firstever fortnite cup dows up 71. Rick santelli, what are you watching today im watching the fact that the dow is up 71 and our president is complaining about the Federal Reserve. Certainly seems were doing better than Many Companies that are following policies the president ulli twod kehe fed to follow more closely. Well talk about that after the break. Hof your investments. Key portfolio events. All in one place. Because when its decision time. You need decision tech. Only from fidelity. Im melissa leen today for scott wapner heres a look at whats coming up on the Halftime Report at the top of the hour. A big week for investors earnings, the economy, and the fed all on deck. Will a rate cut fuel stocks to new record highs and boeing backlash. A major warning from one airline ceo about the 737 max groundings, the risks that might still be out there and the one and only jim cramer will join us for the entire hour to weigh in on all of that, as well as look ahead to apples earnings tomorrow. Thats all at noon on the half back to you, carl. All right melissa, thanks. Well see you in a bit lets get to the cme group in the meantime and get the santelli exchange. Good morning, carl. It depressed me to hear so many strange things coming from the president regarding the fed. And it isnt that i shouldnt expect this from politicians and even though this president didnt start out a politician, hes certainly a quick study and the flipflopping is something wrong, then all politicians should be banned from existence, because flipflopping and the longer a politician is in the limelight just something they do and if you dont believe me, just pick five or six of your favorite politicians that have been in the game more than a handful of years and just look at what their thoughts on immigration or a variety of issues, social issues were ten years ago versus where they are today. And theres tapes out, but it doesnt matter politicians change their mind and it highly correlates to election cycles. But this president , with regard to the fed, makes the least sense to me, because the better my neighbor mentality that exists in the world to some extent today was nothing like it was in the 30s, during the depression, where every country would try to do just about everything to alleviate some of the issues that the depression brought upon their domestic economy. At the same time, some of those policies hurt other countries, hence the term but ultimately, the deal now with regard to currency manipulation or whether policies of big Central Banks are designed purely to help their domestic economy through better exporting, well, its hard to prove. Is it something thats a prescription for their economy or a covert manipulation and since its hard to prove, maybe the best proof is always in the numbers and if you look at the Central Banks that have really confirmed the notion that they believe that more is better, whether its low Interest Rates, negative Interest Rates, policies to buy not only securities, not only government securities, but corporate securities, equities, etfs, ultimately, the countries doing the most seem to have numbers that dont particularly line up very well with the u. S so, it seems really incongruent to me that putting politics and the president aside, that the Federal Reserve on their own seems to be choosing to go down the same road that is traveled by the likes of japan, the ecb, the uk you know, when i look at switzerland, just to try to keep their currency in a relationship with the euro, not to have it get too strong, the things theyve done, they now have negative Interest Rates from twos out to 30s, top to bottom this isnt good. And we can argue, theres a lot of Research Papers being done to confirm negative Interest Rates arent the bain of the Financial System but theyre writing these papers to try to convince us of our lying eyes taking in false details. In the end, were the best for one reason, sound policies the president should let the fed try to implement them and the fed shouldnt follow the leader with countries that arent leading. Morgan, back to you. Rick santelli, with thank beyond meat set to reports after the bell coming off a week that saw the stock surge more than 30 , but it is a little lower today. Aditi roy is in San Francisco with more. Reporter hey, morgan beyond meats shares are up more than 800 since their ipo, making it the bestperforming ipo this year. Theyre lower right now going into print right now the company has been racking up a host of partnerships with major restaurant chains recently, which will no doubt contribute towards its top line growth this quarter alone, beyond has launched partnerships with Dunkin Donuts and tim hortons, but beyond meat has plenty of competition, especially from impossible foods, which counts burger king, little cesars and white castle as a few of its partners and beyond meat says theyll start selling their ground beef in the fall. And then tyson food has unveiled its own plantbased and blended products that are now on store shelves. Theres a lot of market share up for grabs, with the global Meat Industry worth 140 billion. Barclays recent global food report says it believes that alternative meat can reach a market share of 10 of that industry, von though it currently owns less than 1 of the Worldwide Market now as far as whos winning, kellogg owned morning star is largest player in the space with 40 of the frozen refrigerated meat category, followed by conagra owned gardean, and then beyond meat and kraft heinz owned boca foods rounding out the top five. Thats just the refrigerated frozen food segments, not restaurant sales the bears case, not everyone is on the bandwagon last week, chipotles ceo told cnbc imitation Meat Products are just too processed for its menu. Morgan certainly get a lot of attention with those comments, aditi. When you talk about market share, how concentrated are Companies Like beyond meat in the u. S. Versus the rest of the world . What are the opportunities for International Expansion . Theres a big opportunity for International Expansion. Right now, for instance, theyre saying that that same barclays report is that the alternative Protein Market has about 5 in the u. S. And less than 1 internationally. So, there is, i know, impossible foods, for instance, theyre in asia right now and they definitely count that International Segment as an important opportunity. Aditi roy, thank you. After the break, the startup partnering with walmart for selfdriving deliveries. The founder and ceo of gadit joins us next. Stay with us but perhaps this year, a more exhilarating endeavor awaits. Defy the laws of human nature,at the summer of audi sales event. Get exceptional offers now. You thinking what create some pain. . Brace yourself. I got him. No i got him. No i got him. I got him. Welcome back to squawk alley. Walmart partnering with selfdriving company gadik launching a Pilot Program in arkansas for deliveries between its main warehouse and several stores in the area for now, the vehicles still employ a human safety driver behind the wheel joining us now is gotham narang. Gotham, thanks for joining us today. Thank you so much for having me lets talk about this Pilot Program, what it entails and what the longterm opportunity could potentially be for gadik definitely. Our partnership with walmart is a huge validation that commercialization and scaleability of Autonomous Vehicles will happen in the btob space thats what we focus on and both companies are very excited for us its focused on scaling and commercialization of the Autonomous Vehicle technology. E talking about businesstobusiness short haul logistics. When it comes to Automated Vehicles we hear about long haul, tractor trailers that are selfdriving we also hear about the last mile to consumers door steps why are you focusing on this specific part of the market . Definitely. Thats the perfect application so think filling the gap, we call it the middle mile. Its hugely unserved and huge Business Opportunity for us and we believe that while operating the vehicles back and north on routes we can overoperationalize this is a much more constant environment and the promise of autonomy can be realized sooner than delivery applications or other applications of Autonomous Driving Technology gautham what is walmart doing here theyre working with ing witingd youdelve is this a competition to see how can optimize the fastest and when is the next stage definitely. We are the First Company that is working with walmart for this particular use case. What that means is we are not delivering anything to the end consumers. Our vehicles are moving goods for walmart from one of their dock stores to their markets in arkansas with some of the other companies that walmart is working with, the focus is more on b to c deliveries to move goods between businesses in an urban environment. The whole idea is its not trying to change end Consumer Behavior lets try to bring Autonomous Vehicles to businesses and help them save on operating cost in the near term future a lot of whats been argued over the past couple years is that the real efficiencies on autonomy are on highway driving. Is that no longer the case, to morgans question, how much more effort do you have to put into, when dealing with traffic, corners, municipalities and that kind of thing . Yes gatik is focusing on the middle mile and when i say the middle mile, its filling the gap between long haul trucking and the smaller sidewalk delivery robots the middle mile is the most underserved segment of the whole supply chain it is the most expensive part of the whole supply chain so for us, the reason to focus on this middle mile is to help our customers with their businesses help them save a lot on the operating costs, in addition to that, there is a huge shortage of drivers in the segment that with our solution, our customers can help fulfill so thats why i know for us its a huge validation. How much are you talking about in terms of cost savings, especially given the fact that there is still a driver behind the wheel . Yes, so right now, all the testing all the deployment with the safety driver the aim of the company is to take the driver off, scale the solution and commercialize this technology. At scale, we are talking about saving up to 50 for our customers. Yes. So it seems to me like on a corporate campus would be the easiest place to deploy complete driverless also to map out the environment to deal with safety issues do you expect your technology, even maybe within a warehouse to have its first broader deployment thats definitely one use case that we can target for us the focus is to operate the vehicles on loads. When you talk about operating these vehicles between businesses that we can introduce, for example very famously fedex and ups trucks take right turns because its more fuel efficient. If we have something similar for our solution, what that means is we dont have to worry about changi changing lanes, dont have to wipe out solving a tricky situation in our space that is left turns as a company, as the solution, we have a clear goto Market Strategy by installing or introducing some of these constraints and not taking left turns is just one example. Even though the technology can handle left turns, lane change, intersection, traffic light navigation today lastly, gautham, how many years do you think were out from fully Autonomous Vehicles on the roads for supply chains quickly. What i can share with that application we are focusing on introducing the vehicles without safety delivers for a transportation application gautham narong thanks for joining us thank you dow session high was up 83. Were not too far away, despite the fact the s p and nasdaq have not been green all day were back in less than three minutes. Or youre in a military family, please stand. I will tell you this, Southern New Hampshire university can change the whole trajectory of your life. The first ever fortnite world cup taking place over the weekend with the winners taking home a cool 3 million josh lipton is back in San Francisco with the results josh john, the best Fortnite Player on the planet, that distinction now officially belongs to kyle giersdorf, aka bugha. A 16yearold from pennsylvania won the first ever fortnite world cup, his prize 3 million. That is the largest single payout in esports history. The event taking place at the Arthur Ashe Stadium in new york city we know 59,000 tickets were sold, and a whole lot more watched online, nearly 10 million views on youtube on the final day of competition the event really does speak to the powerhouse that is fortnite. The game boasts more than250 million players and nearly 4 billion in estimated revenue it also showcases the popularity of esports more generally. Yes, people really do like watching other people play video games for big prize pools. 454 Million People will watch esports this year, that would be a jump of 15 , and revenue is going to grow nearly 30 to more than 1 billion, mostly from media rights, advertising, and sponsorships so who is watching esports well, more than 80 of the audience is male according to nielsen, the average age they say is 25, with an annual Household Income of 70,000. Guys, back to you. Thats a pretty sweet demo. A lot of advertisers would love to get their hands on that audien audience incredible hes right, people like to watch this stuff, dont need to necessarily be playing fortnite came out less than two years ago, september 2017, and a 16yearold wins millions of dollars for being the best. Just to put it in perspective its an opportunity for Real Estate Developers building some stadiums stocks are mixed dow is up 70, s p is down 4. We have a big week with lots of data, lots of earnings, and of course the fed thats right. Get ready for that big hour is coming up. Lets get to melissa and the half. Thank you, carl im melissa lee in for scott wapner trade talks, the fed rate decision, the jobs report, and the busiest week of earnings, it is noon, and this is the Halftime Report. Announcer the fed getting ready to cut rates for the First Time Since the 2008 financial crisis will it be a green light for this recordbreaking alley to keep going a big warning for boeing over the handling of the 737 max groundings the risks still facing the company, and airlines. Apple leading the earnings avalanche. The stock up more than 30 hi