More details coming this week on each of those offerings and content buys as a crowded space competes over hit shows like seinfeld and the Big Bang Theory not to mention their own original content joining us to discuss, lara ipho and laura martin good morning, guys, good to see you. This is getting crazy. The price tags for some of these shows that are decades old is this a reasonable chase of content right here its war, and war is on were seeing just the only skirmishes theres going to be war on content, billions of dollars will be spent. Distribution, the studios against the Tech Companies everyone will go and shoot against netflix with its 150 million subs, 190 countries, distribution, its a war of attrition. How are we going to know who the losers are i think we know who losers are because the marginal price of streaming services is free. Apple is going to give you a device and free content even though the posted price is 5. Anyone with a kid under 10 is signing up for disney for 3 and nbc announced peacock is free so while the government is whining about the faangs, they are bringing consumer pricing down and i dont know how you sell a 13 a Month Service or a 15 a Month Service if you have your amazon prime for me because youve got shipping and three other services for free. So the last i got from netflix was the last i think it will have to introduce a 6 service supported with advertising. Netflix it has to it cannot support a 13 price point against free. Weve seen this in a way before with g mail and online storage. These Big Companies need attention and want people on their platforms. Is content any different can this play out any differently than that did . Well, so a big part of it is who has the most content, who has the content people wanting obviously disney for kids. Its really ironic all these highpriced shows, 500 million for seinfeld and the Big Bang Theory all of these are broadcast Television Shows that have been on the air the past 15 to 20 years. I dont know if thats the content that will drive these Services Forward so original content. Netflix already spends about 13 billion a year so its a content war. Its going to be what is the consumer going to want and where are they going to see the most concentration of that content. What pays for that content . Is it ads . I ask that in part because ive been, ill admit it, obsessively streaming on my adsupported hulu those ads are really annoying. I dont know how Many Services i could want to take on that are adsupported right now. Well, i think everyone is going for the jugular and they all think im going to price this as cheaply as i can, give it for free. Not everybody is going to survive. By the way, the real losses here are going to be with the cord cutting. This is only going to accelerate cord cutting, which is really interesting for people like at t it seems like as you were mentioning, theres downward pressure on the prices that theyre charging for subscriptions, those who are charging subscriptions, but still upward prices on certain premium content that the Services Feel like they have to have. Thats true. Who can kind of hold their breath longer or win in this game of chicken . Is it the Big Companies like your apples, your amazons, your googles, who just have a ton of cash to throw at this, or is it the companies that are used to dealing with premium content so i think you have to have a cash forward to play this battle if you have a consumer bundle to bundle this wish if you show up at a theme park and get disney for free, my guess is you wont turn it off youve got to have a bundle and youve got to have a branding. I dont think content is enough to win this war. When people say they have 3. 5 services, they forget they have amazon because they view it as free because its part of their shipping i want to make a point about advertising. All of us are watching lots of nonad driven content. How do they reach us you know who benefits . Outdoor, other services where we are forced to look at ads are going up in price because were spending more time on sbod services with no ads whatsoever. So theres going to be a real circulation towards advertising. What about the international story, eric, are we in a stage where those who have a lead outside of the u. S. Will get some credit for that i think so. Netflix has a huge advantage there. Theyre in 190 countries about half of the content that i see in the United States is foreign. And some were discovering some fantastic shows as a result of that, so the content is getting broader. Nbc with the Peacock Services announcing a big Spanish Language service because of telemundo. So yeah, at the beginning people like disney and at t do not have a foreign advantage. Netflix does. Laura, going back to the idea of cord cutting and the loser in all this could potentially be linear tv, i guess how much of a loser could linear tv be, especially if you do see Something Like the rights to nfl in the coming years go strictly to the streamers yeah. So i think sports is the main thing thats Holding People onto skinny bundles and big bundles but i do think what youre going to end up with is svod services that are free, or to you they seem free because youre bundling it in to something youre already buying anyway then youre going to have super special superserved niches like wwe or the rugby channel i dont know that sports is going to be able to afford those or garner the audiences. You might put thursday night on amazon, but you have to be on a broadcaster. You have to reach everybody if you want to create the next generation of jets fans. But wwe was one of the first ones out of the gate with the ote service. So well see how special interest but i see consolidation. I think they have to do rollups and consolidate and have bigger Balance Sheets behind them. Well talk more about that next time. Great insights in a short periods of time. Thanks, guys, appreciate it. Thank you very much. Speaking of streaming, were getting more news out of our Parent Company comcast Julia Boorstin has that from l. A. Brian roberts making comcasts biggest play for cord cutters yet, announcing that comcast is making an xfinity flex streaming tv box available for no additional cost to its broadband only customers, dropping its 5 a month fee for its subscribers first box giving people who just pay for internet and may have cut the tv cord access to over 10,000 free movies and shows along with live content. This will enable users to search and browse content from all of the Digital Services they subscribe to, such as netflix and amazon here comcast is looking to tie consumers who dont necessarily pay for live tv into its family of services by becoming the base of their new streaming bundles this puts comcast into competition with apple tv, amazon, roku and others. Now, roku, which also sells a box and offers free content seeing its shares fall dramatically on this news. Those shares off now over 10 . Morgan, back over to you. Julia, thank you. Meantime, take a look at shares of fedex. That stock has been plunging in early trading today. You could say not delivering this quarter down 14 now a big move for that name missing estimates on both the top and bottom lines while also cutting its fullyear forecast aggressively higher costs as fedex expands ground capacity and capabilities lower revenue from amazon deliveries after fedex parted ways on ground service, also some of its express services earlier this summer and a slowing Global Economy, all contributing to that slashed outlook. Shares are down about 14 right now. Worst performer in the s p also dragging the broader dow transports average down Something Like 1. 5 today. Guys, weve seen a flurry of analysts downgrades on this as well i actually think one of the lines that kind of captures this came from Donald Bratton once again fedex is a Global Economy bellwether in 90 days its gone from expecting growth to moderate growth and singledigit earnings decline to an earnings decline of 16 to 30 . In many ways, i think this is a perfect storm. You see the weakness in europe, you see ongoing issues around that tnt express integration you see slowing global growth, impact from china and business there and then in general, i mean this is this is a company that has continued to shift its investments to keep up and keep pace with ecommerce and that has tended to be a lower yielding delivery service. I feel like they talked out of both sides of their mouth on amazon oh, amazon, 1. 3 of the business not a big deal, not a big deal now all of a sudden, well, that 1. 3 was actually profitable and theyre including amazon specifically in the list of all these other things that are causing headwinds. Yeah. And i think that gets at the very heart of the debate around this stock right now and why youre seeing those shares down as much as they are. How much of this is a company signaling broader macro issues and how much of it is fedexspecific, and we had this conversation in the past hour with an analyst about what could be management missteps over the past year and a half were going to have to see how all of this plays out. Meantime shares are down big and they are dragging the transports with them. Yes, and also meanwhile wall street is bracing for the fed decision, now less than three hours away were going to discuss what to expect next. Stay with us markets. The business of trading goods and services. Nasdaq operates among the largest markets in the world. And our Technology Powers markets from indonesia to chile. Great markets are built on a foundation of trust and integrity, forged through leading Edge Technology and a smart regulatory framework. As technology advances, regulation must keep pace to allow the markets to evolve. Today we see an opportunity to modernize regulation, to make markets more accessible to investors and entrepreneurs of all sizes. From the graduate buying her first stock, to an institution investing in thousands. The markets belong to everyone and stand as a symbol of economic advancement, social progress and limitless opportunity. Thats the tomorrow that we envision and to get there, well have to rewrite it today. Welcome back to squawk alley. Saudi arabias Defense Ministry saying that drone and missile debris proves an iranian role in last weeks attack this as President Trump orders new sanctions on iran. All as wall street looks ahead to the fed this afternoon, expecting the second Interest Rate cut of the past decade. Joining us now here at post nine is jpmorgan Asset ManagementMarket Strategist jack manley and Burns Mckinney both here at post 9. Gentlemen, thanks for joining us. Thank you. Thank you jack, ill start with you what is your expectation from the fed later today . And is the market ready for what we get from powell when he talks . I think the market is ready for some, its not ready for all right now. I think well definitely get an Interest Rate cut, 25 basis points i think well probably see a cut to the reserves rate by perhaps a little more and i wouldnt be surprised if we saw a restarting of some quantitative easing at least in the form of open Market Operations it wouldnt surprise me a whole lot if jay powell comes out there and takes a hard stance on this being the last cut of this midcycle adjustment markets are pricing in more than that and i dont think theyre going to get more than one more cut. Burns, do you agree with that its been not as bad as feared but better than expected. It certainly doesnt justify a 50 basis point cut really the Economic Data probably doesnt in the near term justify a 25 basis point cut. Because the fed has said theyre going to make the cut, we do expect a 25 basis point cut almost absolutely going to happen this is one of those instances where they say actions speak louder than words. In this case its probably the reverse. The action is what we know is baked in what makes more difference is what chairman powells words are later on we probably expect him to, if anything, have a little bit of a dovish tone, not mentioning midcycle adjustments this time and just making very clear that the fed is ready and prepared to do more without necessarily committing to a timeline. Jack, does the attack on Saudi Oil Production change anything i dont think it changes a whole lot. Weve already seen 50 of production back online within a day. I think the saudis are well in control of this. I think whats important to remember is if for some reason this does extend into a longer duration problem, the u. S. Has plenty of capacity to up production, push prices down and resupply the market. Some discussion this morning on the repo squeeze. Goldman saying we do not believe this widening is a precursorto a period of Financial Market stress driven by technical factors. Weve been asking whether or not were going to get some clarity on this from powell today. Its something that the fed its already a challenging day for investors anyway, even without this. So the fed, they have a lot on their plate. Chairman powell probably will address it he probably is going to try to reassure the markets, let them know this is technical, this is shorter term in nature in laymans terms it really has a lot more to do with the fact that we are at the ending of a quantitative tightening cycle and its just you have a lot of window dressing that does take place at the end of quarters but its not something thats probably going to be a primary focus of chairman powell. So, jack, given expectations around the fed this afternoon and beyond, given all the geopolitical stuff thats playing out in the world right now and of course these trade talks which well see what happens there, how do investors need to be positioned . I still overweight to the equity side of things. But i think especially if the fed comes out a little bit more with that hardline view, were going see some of the more defensive sectors take a little bit of a beating things like staples, utilities i dont know if thats where i would be positioned right now because i think they may have been bid up. Still room for risk, but opportunities are a little bit more challenged. Burns, ill put the same question to you quickly. Within equities, we think right now because we are late in the cycle, we expect investors to probably to do best with companies with visible earnings, clean Balance Sheets we Like Companies that are growing their dividends. Dividend payers have gotten a little bid up but those are probably a good place to be right now. Thanks for joining us, burns and jack. Thank you. Keep your eye on apple today. Were getting some reviews of the watch this time. Is it a must have . Well finding out what cnbcs own tech reviewer, todd hazelton, is saying when he joins us at post 9 in a moment the dow is down 55 so servicenow put your workflows in the cloud, huh . Mmhm. Your employees must love you. Thank you. Ah, you could say that. So how are things with you guys . Great. Thank you. Thank you, sir. Lunch next week . Terrific. Say hi to the team. Will do. Call my office, i will. Sounds good. Alrighty. Servicenow. Works for you. Its my special friend, antonio. His luxurious fur calms my nerves when im worried about moving into our new apartment. Why dont we just ask geico for help with renters insurance . I didnt know geico helps with renters insurance. Yeah, and we could save a bunch too. Antonio fetch computer antonio . Ill get it. Get to know geico and see how much you could save on renters insurance. We believe in education built for all people. , [woman] snhu was the best experience of my life. [man] without snhu, i wouldnt be the leader i am today. [woman] i graduated high school 19 years ago. I still finished. [man] in the military, you feel that sense of accomplishment. Thats what snhu is. You will march from this arena and say to the world. I did it. [woman] you did it. I love you. [graduate] i love you too. European markets are set to close in just a few minutes. Our dom chu has that covered dom . Jon, markets across europe mostly higher ahead of todays big fed decision as you can see behind me, lots more green across the screen the uk stocks are the biggest laggards after a softer than expected read on inflation in the United Kingdom this past month. Turning to sectors overall, marginal losses in retail and banks being offset by some strength relatively in autos and technology but the focus continues to be on the Energy Sector as we track the fallout from this past weekends attacks on Saudi Oil Facilities in the kingdom. Oil and gas stocks are leading the gains today, as you can see here still, though, most of the major European Countries so far have adopted a more waitandsee approach to the overall scheme the uk and germany both condemned those attacks but have stopped short of assigning any blame for them frances foreign minister also reluctant to call out iran, specifically saying the country has no proof of where those drones had originated from finally, sticking with g geopolitics, wanting to flag the stock of the day in europe, and thats montclaire. The protests in hong kong could hurt the Business Environment so they are off 6 to 7 in trading. Morgan, back to you. Lets get to sue herera now for a news update. Good morning, everyone, heres whats happening at this hour saudi arabia alleging that iranian cruise missiles and drones attacked its oil facilities, showing journalists the remains of the weapons while stopping short of directly accusing tehran of launching the assault. A saudi military Spokesman Says the attack came from the north. The european parliaments chief brexit official has welcomed a nonbinding resolution adopted by eu lawmakers supporting another extension to brexit if britain requests one it was for me and for everybody in the house very important that in the midst of this end game or negotiations on brexit, there will be a clear position by the new elected Parliament Former president jimmy carter, who was just weeks shy of his 95th birthday, says he doesnt believe that he could have managed the presidency at 80 years old he was answering audience questions during his annual report at the Carter Center in atlanta. Two leading 2020 candidates, joe biden and bernie sanders, would turn 80 during their terms if they were elected. You are up to date thats the news update this hour back downtown to you guys on squawk alley. Back down to you, morgan sue, thank you. After the break, paypal and cofounder joe lonsdale is with us his take on the latest in the wework saga. Dow is down 59 king har thats why your cash king har automatically goes into a Money Market Fund when you open a new account. And fidelitys rate is higher than e trades, Td Ameritrades, even 9 times more than schwabs. Plus only fidelity has zero account fees and zero minimums for retail brokerage and retirement accounts. Just another reminder of the value youll only find at fidelity. Open an account today. By the way, shes the it wasnext mozart. G day. As usual we were behind schedule. But sophies enthusiasm cannot be dampened. Not even by a runaway donut. We powered through it in our toyota prius. Because a stars got to shine, no matter what. Its unbelievable what you can do in the prius. Toyota lets go places. Getting some tweets from the president a few moments ago. Our phil lebeau has more on those from chicago phil. Carl, has expected, President Trump says that the Trump Administration is moving forward with plans to revoke californias ability to set its own standards when it comes to fuel economy, standards for vehicles he tweets out the Trump Administration is revoking californias federal waiver on emissions in order to produce far less expensive cars for the consumer, while at the same time making the cars substantially safer. This will lead to more production because of this pricing and safety advantage and also due to the fact that older, highly polluting cars will be replaced by new, extremely environmentally friendly cars. There will be very little difference in emissions between the california standard and the new u. S. Standard but the cars will be far safer and much less expensive. Many more cars will be produced under the new uniform standard meaning significantly more jobs, jobs, jobs automakers should seize the opportunity because this all because without this alternative to california, you will be out of business. This was expected. They sent a note to the epa and the d. O. T. Sent a note to the California AirResources Board saying that they planned on moving forward with revoking the status of california to set its own standards. We expect to hear from not only the head of carb, the California AirResources Board but californias governor and attorney general likely within the next couple of hours theyre spoiling for a fight as much as the Trump Administration they believe they have this federal waiver which allows them to set their own standards so well see how this plays out over the next couple of months. Its going to play out in court, phil. Yep. Probably all the way to the supremes, right . Yeah. Look, the standards were not going to see them finally put in place for a long time because its going to take some time before this plays out. Phil lebeau humbled, that is how wework founder and ceo described himself in the midst of the ipo process. That debut is delayed at least a month so we turn to a tech investor, many of whose own Portfolio Companies are wework customers. Joe lonsdale joe, good to see you good morning. Good morning. So whats the lesson of the controversy around this wework ipo so far well, you know, theres a lot of things in Silicon Valley about this one this company had very mediocre governance and over confident might be the nice way of saying it in terms of the founder honestly its not a company thats been innovating in areas that most of us care about its not one that a lot of people here that i know have been rooting for. So how different is this really, though, from snap . It had some pretty creative Corporate Governance standards that it presented during its ipo. Facebook, google before it kind of pushed this founder control in the beginning yes, they have taken it perhaps a step further, but is the Business Model here and perhaps the lack of technology in the way that they run their business the real sin i think the lack of technology at least as its perceived by people out here is a big problem in terms of something it doesnt really feel like a company of sill vaug Silicon Valley, it feels like new york in a sense what theyre doing. Frankly there are some rules that they violated these days we wont back a Company Unless the founder would have to give up control if they were to leave. I think its really great that he is being forced to make these changes. Give back the money that he got from naming the company. A lot of that stuff seemed pretty silly it seems like it is going in a good direction where hes being responsible and hopefully cleaning it up enough that people will tolerate it. So, joe, is wework a oneoff . And i ask this based on some of the performances weve gotten from recent companies that have ipoed in the last week or so. Is Investor Sentiment changing around some of these private, quote unquote, unicorns that are looking to go public i think there are two different sets of companies here there are companies that have grown with just huge amounts of money that they have raised where its very unclear what the longterm Business Model is and how theyre valued and theres companies that have worked really hard for ten years to develop a really hard new technology that fundamentally changes and then grow based on that i think those companies that work to really have the best engineers in the world solving hard problems that matter to industry, the things were doing in health care and logistics and other areas, those are real companies. I think this one people are a lot more skeptical about is it a real innovation. Right theres two Different Things going on here, joe one is the Business Model itself and the way we would judge it, no matter who they were, but the other is the Corporate Governance issues that they have tried to remedy and you pointed that out which do you think is truly responsible for the delay of the ipo . Thats a tough question i think they kind of mesh together you get something thats very overconfident thats breaking all the rules, and i think thats part of whats going on too. Theyre putting billions of dollars to work very, very quickly and its unclear what its actually worth. I think the combination of having a questionable Business Model with extreme governance was too much maybe either one by themself it might have worked out. Joe, talk to me about the fundamentals, though, of work and the future of work and where people are going to work every five years theres a different idea about this. Everybody was supposed to be working from home and now everybody is supposed to be coming to the office were agile now, its urban. Is this going to shift in five years . What are you telling Portfolio Companies, entrepreneurs who are trying to plan their expansion and where theyre going to have their employees . Thats a great question you know, i helped start a Company Called terminal thats helping tens of companies in Silicon Valley hire people in canada and hire people in mexico id love to hire people here in the bay area 40 of the land is being used by cattle so its too expensive because we cant build housing i think the way youre going to get people working from home around working from everywhere is youll have to have a lot better augmented reality and better ways of making it feel like youre next to somebody i think those technologies are coming in the next ten years. Joe, you have comments coming out of saudi arabia right now that they have evidence that the attack launched on aramco facilities was not launched from yemen, it came from the north and was definitely supported by iran they have missile debris that cruise missiles were used in these attacks as well. Its shedding a lot of light on saudis missile systems, the capabilities that are in place and whether those technologies can keep up with some of these attacks from drones and the like what is your take on that, and since you are invested in a number of companies focused on National Security and where is the technology headed . Does this increase demand for it well, thats a great question Silicon Valley was created by Defense Companies and defense has not been a popular place to work here lately my friends and i are spending a lot more time trying to figure out how to innovate in defense theres 780 billion were spending in our country and theres new systems were building out here right now to work on drone defense, to work on how we take out these systems. Its a very scary world right now. I think we need a lot more people trying to solve these problems joe lonsdale, thank you for joining us minor changes, but still a must have. Thats the review from our own todd hazelton on the new apple watch. Todd joins us this morning at post 9 im especially curious to hear what you think about this because weve heard about the phones but this is just as interesting. Yeah, it is it has a couple new features its not a huge update but it has an always on display which means if you look at it here, the screen stays on and then turns back on when you look at it so before it would just turn off, which was annoying when you were working out or Something Like that, youd have to flick it and get it to turn back on so thats a big deal. Also it has a compass built in which doesnt seem like a big deal except when you get out of the subway in new york city, open up maps and it shows which way youre facing. Apple told me during the call that 70 of its apple watch buyers are buying for the first time so unlike products like the iphone, theyre not necessarily going after upgrades every year. So someone with a series 4 doesnt need to buy this model unless they want that alwayson display. Really theyre trying to attract people to the apple watch still in general i think thats why we saw the series 3 drop down to 199 for people who dont want to spend 399 for this one. Any noticeable impact on battery with the always on no, its been fine. Its been 18 hours can i go from when i wake up in the morning to when i go to bed and i go to bed early, ill admit that but i do get there the one thing i didnt see here is sleep tracking and that would be a problem with the current battery life of 18 hours you wouldnt make it through the night. There are thirdparty apps that do that. Apple is waiting to see if it can get it right they purchased bedit a couple of years ago and havent done anything with it so well see if he add sleep tracking. Youve reviewed the apple watch and the new lineup of iphones. What are you more excited about . I usually like the apple watch each year as my favorite gadget this year, i dont know. I had the series 4 i did buy the series 5 because i like the alwayson display i think im leaning towards the pro iphone because i like that ultra wide lens on it this year. Does the alwayson display show you things like heart rate if youre in the right mode or is it just going to show you a very limited number of it is very limited but does show workout stats so your heart rate while youre on the treadmill, show you how far youre run, altitude, other things but if you have the maps open or anything like that, it starts to show the clock and doesnt show everything else. Which is the bigger deal, the 199 price on last years model or the fact that this watch actually still works as a watch when your wrist is no, jon, thats a great question i think the 199 is the bigger deal theres a lot of people who are like apple watch seems cool. I dont want to spend 399 and thats just the starting price the ceramic model costs more than 1,300. I think the 200 is dangerous for Companies Like fitbit because now you can get the apple watch. But the apple watch doesnt support android still. So there are millions of people that are on android. I dont think it will add that but it would open up the audience. Thats for sure it looks nice. Thanks, todd. It is nice. Thanks for having me. See you later. Goldman sacks forecasting this will be the worst year for ipo profits since 1999 the year the dotcom bubble began to burst cnbcs kate rooney reporting that that analysts at goldsman believe only 24 of Companies Going public this year will report positive net income a lot more online now at cnbc. Com on this story icbrwee ckft a aer quk eak. Liberty mutual customizes your car insurance, so you only pay for what you need. I wish i could shake your hand. Granted. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. Im scott wapner, heres whats coming up at the top of the hour on the halftime report. Jeffrey gundlach is live with us well get his thoughts on rates, the repo market and where he is looking to make money. Plus another big price bump for roku today our traders will debate that stock, its our call of the day. And the ten names you must own right now, according to one wall street firm well reveal them, debate them and well do it in about 20 minutes or so, a little less than that. Well see you then. Looking forward to it, scott, thanks. Lets get over to the cme and rick santelli. Of course this is a big fed day. July 31st we had our first easing, which means we have eight quarter points left to fight any future slowdowns, recessions, unforeseen issues. Eight isnt many but its more than other Central Banks have which ought to be i think foremost in our central bankers minds. But unfortunately i think we have more of a 3d fed, d for data dependent, which seems to be well into the rearview mirror, more into d for dot plots which leads me to think of that d as day trading. Basically dot plots, just get the fed deeper and deeper in trying to explain the unexplainable. I mean lets face it, we have a 3d fed, but we have flat earth markets. Think about the markets. Think about minus 50 basis points bunds in europe think about the 2year in europe down close to 70 basis points. Markets dont make sense we have huge amounts of debt you know, the recently issued debt last week, 3s, 10s and 30s along with the litany of debt were going to be issuing in this country was at least one of the reasons we had a bit of a crunch in overnight funding. Maybe it was oneoff with tax day and all the other issues youve heard about over the last 24 hours, but if its not a oneoff, maybe theres a lot of little oneoffs because things just dont make sense. Lets go to the flat earth markets. Think about it we have Central Banks, passive bond funds, Pension Funds that continue to plow in and buy. And they have no regard for fundamentals theyre just matching their liabilities, and it creates so many distortions in the marketplace that after the dust settles, how can we reconcile such wide disparities between our positive rates and all the rest of the low, ultra low and negative rates across the globe . Well, traders are a pretty smart group. They know how to hire programmers. If you look at how they make money at this time, it isnt only the greater fools theory where theres always somebody behind you willing to pay more negative and allow you to get out at a profit, but when we look at the forwards and Forward Exchange and our positive rates, theres games that are played with these carry trades that are basically currency hedges that make money is that a bad thing . No but what it underscores is a whole Cottage Industry that always crops which leads to days like yesterday i think the fed needs to sit back and pause i get it they have plenty of reasons why they could ease. But they have one big reason why they shouldnt, because our economy is doing better than others, and the other economies are going to be scrambling if the downturn becomes a larger downturn carl carl, back to you. Good to get on the record, thanks, rick rick santelli. Theres more trouble for juul today and its not just here in this country aditi roy explains from san francisco. Carl, india is the latest country to ban ecigarette sales which is bad news for Companies Like juul and Philip Morris international. Juul has not launched in india but it does have a team there doing due diligence. The ban follows news that china has halted sales of juul products just days after the Company Launched there juul has been rapidly expanding internationally. Its currently in 18 countries outside the u. S. , excluding china. China has about onethird of the worlds smokers and europe and asia together, theyre a big focus for juul as it faces increasing regulatory risks in the u. S. Speaking of those domestic headwinds, congress is threatening to subpoena juul for not handing over some documents in a probe over juuls role in the teen vaping epidemic the Committee Says juuls record is woefully inadequate among the documents they are requesting, the contract between juul and altria. This Development Comes after new york just enacted a ban on flavored ecigarettes following a similar ban in michigan, and california also cracking down on ecigs this week it will be going after counterfeits and issuing warning labels on vaping products. All of this putting a lot of pressure on altria shares have slipped 11 in the last month juuls valuation also taking a hit. Sources telling cnbc that the companys secondary shares have slid about 20 incidentally, some analysts believe these will be a boon for traditional cigarettes which could see sales climb as more restrictions are placed on ecigs morgan, back to you. Thank you. Were getting some headlines from jamie dimon ylan mui has those from washington. Reporter jamie dimon just speaking to reporters and saying that he doesnt believe a fed rate cut today will offset the impact of the trade war. He said that the fed needs to make its own decision in response to a tax on the fed from President Trump he said the feds independence is paramount and he called jay powell a, quote, quality human being, though he did say that the fed needs to perhaps communicate less and reduce the number of governors and fed president s who speak and give their opinion. On a recession going forward, jamie dimon said that he does not believe one is imminent because he feels the consumer is still strong, even though ceo optimism is waning and on china trade talks, he said that he has spoken with President Trump about the harmful impact of tariffs and the trade tensions on businesses on their supply chains, but he said that he is skeptical of reaching a deal before 2020. Guys, back to you. Ylan, he covered so much ground he even got to negative rates, right . Reporter thats right. He said hes not really a fan of negative rates we dont understand the longterm consequences of them but he said that right now 25 basis points is not going to move the needle on the economy pretty comprehensive pen and paper with dimon ylan, thank you very much for that up next, the startup thats turning High Schoolers into esports players the ceo of play vs joins us on the other side of this break well be right back. Ly a treet guy. Whats the hesitation . Eh, it just feels too complicated, you know . Well sure, at first, but jj can help you with that. Jj, will you break it down for this gentleman . Hey, ian. You know, at Td Ameritrade, we can walk you through your options trades step by step until youre comfortable. I could be up for that. Thats taking options trading from wall st. To main st. Hey guys, wanna play some pool . Eh, im not really a pool guy. Whats the hesitation . Its just complicated. Stepbystep options trading support from Td Ameritrade get your head in the video game play verses. The first sanctioned e Sports League announcing its intention to extend to all 50 states this fall and a 50 million round raised close to 100 million in just 13 months joining us now, the companys ceo. Good morning good morning. Thanks for having me great to have you tell me, a lot of parents are trying to get their kids to be on the screens less. And yet, now theres actual business, a future, behind e sports whats your pitch with this league as it goes nationwide to parents, what we found is that parents actually want their kids to have success in the student environment. And so sports and activities have actually allowed and have shown evidence of increase in student gpa, student engagement. Student attendance and its giving kids a structured environment to do the things that they love and parents are really just rallied around this concept of making sure their kids reach the next level and have success within school weve not received any pushback from parents they support play verses and the work were doing within e sports now the business, what youre going to do with this Investment Capital youve got, explain what the process is of building this out nationwide what the infrastructure is whats going to keep anybody else from just move ng and doing the same thing youre doing . Sure, yeah, so our infrastructure is built around exclusive distribution with the National Federation of State High School athletic associat n associations they essentially govern High School Sports and write the rules for High School Sports and theyve been around for 100 years operating parallel to the ncaa so weve signed an exclusive partnership with them as of last january to introduce e sports in the same way that traditional sports have been b introduced any almost 20,000 high schools across the country we have unparalleled relationships with game publishers that allow us to commercialize their ip, but then also to integrate both operationally and technically to be able to make their games varsity High School Sports and internally, weve built an incredible product to be able to facile it that and obviously, we have tons of resources at our disposal to be able to scale our offering within this market. Its unusual. More than it should be, to see an First Amendment entrepreneur active in this space and raising kind of money that you have. How did you do it . Give me your take on what the process has been like and how others can its been, its been a long process. And draining an exhaustive process. Internally, in reality, the time period has been short. We started the company last january and have now raised 96 million over the past 13 months. I wouldnt be able to, its, i dont know if i have enough time to actually share the process, but what ill say is that i wouldnt be able to have accomplished this without the help and support of my team. I built an Incredible Team talented educators and start up executives and people like technologists and product leaders and were super excited about our position within the market and to continue to service our community, especially our kids who rely on us who you know are, are so excited about play verses because it gives them an opportunity to be validated and recognized for their talents. So the backbone of our success is because of our team i understand that youre building out this National Infrastructure and creating this onramp for High Schoolers to get more involved in e sports. How are you making money we have an opportunity to have a robust Business Model. Today, we focus on anticipation fee. Our first product is called seasons. This first concept of kids playing on behalf of their school on coaching, on the campus for their sports team competing for a championship we charge 64 for that that participation from and its typically paid for by parents or the school itself. Down the road, well monotize in other ways we really believe that it will be not only a generational gaming product, but also a 100 million plus user subscription business all right, 50 million series c. Congratulations. Great to have you. Thank you by the way, tomorrow, nba lenld and also noted tech investor, kobe b bryant, is going to be b with us 9 00 a. M. Eastern time dow down 76. Tight range going into the fed decision back in three minutes woman my reputation was trashed online. I felt completely helpless. My entire career and business were in jeopardy. I called reputation defender. Vo take control of your online reputation. Get your free reputation report card at reputationdefender. Com. Find out your online reputation today and let the experts help you repair it. Woman they were able to restore my good name. Vo visit reputationdefender. Com or call 18778668555. Take look at shares of adobe. They are down this morning despite posting on the top and bottom lines sh, they said Current Quarter revenue might come in under expectations its down almost 3 . Digital media, the advertising linked group has a bit to do with that. Yeah. Meantime, taking a look at the broader markets right now, dows down 68 points s p down less than nine. 29. 96. Its been a tight trading range. This session is really bookended by two different entities with the word fed fedex earnings after the bell last night which were pretty rough and dragging down the transports nearly 2 then the fed meeting today. Yes, r although i guess equal weighted transports still outperforming the s p so far this year. See how long that can last get to the judge back at hq. The countdown to the decision one that has so much riding on it the move and message likely to drive your money in less than two hours. Yes, that was the back of steve weiss head. Its all new and its the halftime report. The fed expected to cut rates for the second time in a decade. Will powell signal more are coming and what happens if investors dont like what they hear . The bond king making a big call. Jeffrey gundl arach weighsn