Transcripts For CNBC Squawk Alley 20240713

Morgan brennan and jon fortt at post nine. Market improving on headlines from larry kudlow. Facebook, amazon, alphabet trading 7 to 15 below peaks on that, we turn to mike santoli about what it says about big tech valuations. Valuations moderated, sentiment has turned i think mostly were talking about alphabet, facebook, and amazon opposed to netflix. Analysts talk about potential some of the parts type valuation. Break up value Type Analysis of the companies, not because they think theyre likely soon to be broken up, want to surface the idea theres value not recognized in the markets. It was emblematic, saying google cloud partners is worth 225 million. If you buy into that, is Amazon Web Services worth all of amazons market cap . You can go on with the conventional wisdom that facebook was somehow broken up, someone some of those off, maybe the sum would be worth more than it is now, right so i think this is mostly a wall street exercise. But it shows you that faang became faang because the idea was they created platforms, winner take most tech leaders, in consumer internet, and the networks someone profits inevitably now it is about what assets have you built and what could you possibly surface in the way of value. Another side of this argument is looking at apple and microsoft which are both doing about as well as they have for a couple years both have market caps above a trillion dollars, and a way to be as investors are getting weary of Growth Companies that are smaller, perhaps theyre fleeing into the arms of redman and cupertino. Those are companies that still have that story intact, they have this ecosystem, it really is working, theres not a lot of pressure about antitrust behavior or anything like that on them, you can allow the models to work for you as opposed to the other ones where interestingly the business, not much has changed we all know except for facebook ramping up costs to do policing of the network, it hasnt altered that much. The market was willing to give alphabet the benefit of the doubt, look, youre paying for search, it grows inevitably, the rest comes as a bonus or live with what they spend on the rest of it. They ask whether they set a deflationary standard and trained us all to get stuff for free. Exactly i think thats chasing where the market had gotten to in terms of reassessment of netflix. The reason i excluded netflix is it doesnt have a lot of the issues in terms of regulatory pressure, right . Buying content at market rates. Resells them at maybe less than that. But it is more about there a arent Hidden Assets this is a one Product Company for the most part. Well speak to the analyst behind that call a little later. Mike, i wonder how it speaks to the Broader Market yes, we talk about Tech Companies and some of the parts exercise with some of the biggest Tech Companies, overall, youve seen a move to deacon glom advertise others, consumer staples, realize more value. How does this speak to the fact that these are the Biggest Companies and that this has been the market narrative the pendulum always eventually swings that direction. I think the issue with the companies, theyre still founder led, i think the founders think of themselves as we want to create this paranoid entrepreneurial culture, we have to start these new things and fund it with the cash cow business whether thats true or not, thats how they treat the company. I think only by force or relum ta reluctant way they think about that lets bring in paul meeks ethan vance. Lou, ill start with you, is there a case to see big cap Tech Companies broken up . How are you thinking about the sum of the parts exercises i think it makes a lot of sense, these companies have a lot of various businesses that are all growing pretty rapidly, if you look at a company like amazon, you know, their Web Services Division is growing north of 30 plus percent, Online Retail is still less than 10 of overall retail spending, that still has plenty of legs to go still a lot of growth left in the companies. Mike santoli said it best when he said nothing changed with these companies. The only thing that changed it rhetoric and sentiment regarding the companies. That can shift over time at the end of the day, fundamentals matter. With these companies as positive fundamentals continue, the stock should respond in kind paul, do you agree . I agree to a certain extent i would say i go through in my own work some of the parts of analysis and i think once you do that with the faangs, the most attractive to me is google, but the most interesting based on its rapid growth is amazon, so i would say as a backdrop that i still think trumping some valuation, you cant do too much valuation work with some of the companies, the rapid growth of users and revenue. Thats why i continue to like folks like amazon with Amazon Web Services yes, the breakup analysis is somewhat important, but the Revenue Growth is always going to be the most important paul, should investors be going through the bargain bin looking at recent ipos that are trading below where they priced . Im thinking uber, lyft, even some that are doing better than where they were trading on the first day like zoom have come down from where they were trading a few weeks ago. If they were good at the hyper inflated prices, are they still good here . Zoom is interesting it hasnt broken too badly some of the other ones that look like reasonable Business Models like pinterest i think the ride hailing business is uneconomic and regardless where uber and lyft are today, those stocks could go much lower i would not scoop in on those two names. Whats much lower, paul would have to be a lot lower. Cant say stocks are going to zero, but think of the market caps still large for a minute that show no synergies, network effects, and not only facing revenue pressure, they have rising costs it is only getting worse, not better. Lou, it is amazing given all of the market turbulence to start the month of october, there are two sectors that are actually back in the green, Communication Services and technology i guess with that said do you see any bargains in the market now, especially if you are on the prowl for socalled growth names . I think that Technology Outperformance is deceptive, it is led by two of the biggest cap stocks, apple and microsoft. Theres a lot of damage below the surface. Thats where were trying to seek out opportunities, names that have been beaten up a little bit that have great longer term growth prospects, but because of various sentiment issues and investors concern about longer term growth, were looking for that opportunity so what are some of those names, lou, and how risky are you willing to get as you look out for the positive outcomes . We think theres a lot of opportunity in Network Security names. I dont want to get into specifics as we are relatively active in some of the names, but some of them come down quite a bit in the last six to nine months, present great entry points in real secular growth area of the market so paul, going back to ipos for a minute here, given what weve seen with wework and weve seen other names pulled last minute before coming to the Public Market, do you think the window has closed right now . I think the window is closed or else it will open, but youre going to have to give investors a good deal, not only with a Quality Company that at least has some prospect of generating Free Cash Flow but at a reasonable valuation and reasonable valuation is the carnage in the ipo market thus far in 2019, much lower than the marquise Investment Bankers think. Thanks for joining us today thank you when we come back, well talk more about the fear that crept into the ipo market in a post wework world. Kara swisher is with us to discuss. And 2020 president ial candidate tom steyer rolling out his economic agenda, taking aim at Corporate America will join us later this hour kuow dl headlines worked. S p has gone green back in a moment devices are like doorways that could allow hackers into your home. And like all doors, theyre safer when locked. Thats why you need xfinity xfi. With the xfi gateway, devices connected to your homes wifi are protected. Which helps keep people outside from accessing your passwords, credit cards and cameras. And people inside from accidentally visiting sites that arent secure. And if someone trys well let you know. Xfi advanced security. If its connected, its protected. Call, click, or visit a store today. Dont need to tell you, a turbulent year for ipos. This is the fourth busiest year, but it is the performance that has vorlinvestors and Companies Taking pause goldman says the worst market for ipo since 95. Are investors starting to sour or startups at large joining us, recode editor at large, cnbc contributor, kara swisher. Great to have you. Hello how you doing . Doing well, better than uber or peloton shares. I know. What is this saying to you . Like i said last week, math math is an issue these people are wondering how theyre going to be economically viable about raising prices, getting smaller. They havent grown into massive valuations that Major Investments from softbank have put on the heads of companies. Theyre sort of too big for their britches. Were there just too many though Even Companies that look economically good, zoom, pinterest, they ran up, came down it is not Just Companies with dubious business liners that are performing oddly theres more ipos coming to market this year than ever before maybe just too many. Not too many, i think just the valuations, private valuations, how long it took to go out are too high. Retail investors are not having any of it. I think it is a bubble atmosphere in Silicon Valley after softbank came in with all that money not to say that peloton is a great business, pinterest, but theyre not worth that much. I think thats the disappointment i had some people from all these companies, i was going to buy a big house, now im not theres that i think im worth this theyre still buying a big house. There was a great lead, alex hall, not sure who wrote it, said we vice deciding they were worth 3. 6 billion, action lee sherman said i decided my house is worth 278 billion. It is like that. Valuations are made up in fiction. Even the debate going on in Silicon Valley around direct listings, do you think this conversation would be happening if direct listings were used by more companies i dont know. I think the price is what it is. Everyone can read math, can read a spread sheet it used to be it is just popular, people bought into it most people are looking at businesses and where theyre going. It doesnt mean some of them wont be more valuable, they have to grow into value. Like i mentioned earlier, instagram, spun it off in regulatory fashion or aws, those grew into, theyre massive companies. They did great for ipo or spin off, that would be a massive boost if aws spun off. Shareholders at amazon and facebook would be thrilled. Talking about it so long. Are you sensing any interest in the giants doing anything like that i dont know if theres interest or compelling reasons, including antitrust investigations and things like that why not use it, think of it as an opportunity rather than a negative is vision fund 2 going to be a referendum on what happened thus far is softbank going to be able to raise the full fund. If they do, can they do the same thing they did with the first one or do they have to change the deployment structure. The idea of throwing money at anything is not the way to go with any of the companies. Theres a certain amount of companies they need capitalized, but theres farming and all kinds of interesting areas of tech that need heavy capital that are promising Climate Change, i keep saying, the worlds first trillion air will be the person that sells a lot of Climate Change problems with technology. I guess in light of that, what are companies you keep a close eye on that havent gone public but theres speculation. Airbnb. Interesting to see the real numbers. Probably a pretty good business. Palintir, and several others there are a bunch of others. Airbnb i think will be the big consumer one well see. Had gurley on talking about direct listing push. Is that resonating out west . They like the idea, it is more control these people like their stock that they control and boards that they control and their stock market fewer fees. And wall street doesnt help me, thats a typical Silicon Valley attitude. Is there a change potentially in the type of control that these companies are looking for . Theres a lot of talk about directness, at the same time, talk about lets do away with some extremes in classes of stock. Do you think thats really going to never going to change until they have to, until investors now do they have to push them on whats interesting, bill gurley is not talking about capturing a lot of value that said, he captured plenty of value out of uber. He is incredibly smart guy, but he wants more valuation, the money the Companies Get to put to capital put to use to be higher, and has a good point why line pockets of the bankers. Why, good question. I wonder if theres an actual reckoning in the private market based on reaction, the Public Market investors had to so many ipos now, or whether it means we see more Companies Stay private longer thats a problem staying private longer, problems in terms of being rigorous, in terms of control, they are used to control problems of not understanding scrutiny a lot of them are like what . You have questions of me how dare you it is just me out there asking me some of the things now were learning about weworks initial filings, omitting certain things about number of desks, omitting whos on the comp. Committee next round of s 1s will get scrutiny. Yes s1, best law passed ever. They give you an insight, especially when people manipulate they have to be rigorous regulatory bodies, the sec has to clamp down on this kind of thing. It is hard enough to be a reporter trying to dig these things up. When you have Regulatory Filings that are not accurate, thats a real problem. Are we about to see round two, three, 11 on Silicon Valley and china . I look at this nba china thing, reminds me of stances that google was taking a decade ago, seems to have backed off on, right . Way backed off. They want to do a lot of business in china. Does some of that get reagitated people going maybe we cant be in china the way we thought we could. Wait a second, is there a line to be drawn . No. Same with saudi arabia you know, no. You mixup hoodies with huge amounts of ethics. Theyre like any other businesses as you all know and i think they have better food. Clagtancellations on the latt member of the family clara jo swisher cats. She has two pair of glasses, including a gold pair. Congratulations to you. Im very excited. Wonderful news. Your life is about to change. I already have kids i got a note from the head of land olakes, sending me a one see. Says roosters make all the noise, hens do all the work. Were fine well do just fine thank you though thank you so much. Yes, congrats speaking of private Companies Looking to go public, were taking a closer look at the most valuable Venture Backed Companies in the world deirdre bosa has more on airbnb. Hey, jon, thats right. Sha shaping up to be the most anticipated listing next year, could be different than uber and weworks of this year airbnb does operate in the economy space, connecting users with a service, unlike them, profitable the last two years. 3. 5 billion in cash, could be looking at a direct listing. Its Business Model is fundamentally different. I like that kara was talking math heres what we know about airbnb for typical airbnb stay, the Company Takes in 15 in commission fees. The host is charged around 3 . This is the life blood of the company. The revenue that pays for its costs, like running the platform, services, host guaranteed and protection shoornl insurance. That model is changing as they go deeper into the hotel business, competes with online travel, neither of which charge guest fees host or hotel in airbnbs case pay more earlier this year, airbnb acquired hotel tonight, is developing its own hotel with new york realty. When airbnb files its s1, whether it brings in more money through commissions than spending on costs, things like insurance that could be a large cost remember, uber once had a profitable quarter, thanks to big mergers and like the ridesharing contribution, and community wework adjusted. It will be interesting when they open the books for prospectus. How much do you expect that to swirl around as we get closer to potential airbnb ipo. I guess midyear next year is a critical period because a lot of issues are trying to see if they can get out before the president ial election season really ramps up. Yeah. I think the folks we talked to in Silicon Valley say that the ipo market is still good for a certain kind of company. Mostly those are Enterprise Software companies that have done better, still coming off peaks, rather than the big Economy Companies like uber, lyft, Wework Airbnb is not easily classified as either, right it is asset light and has revenue that it takes through commission fees, so it will be interesting to see what happens when they open books for the s1, and particularly going to be important how fast it is growing. Jon, this is a ten year company as you know, are its best growth days behind it, what are ipo investors buying into with uber and lyft and some other high profile names. Growth rate is slowing by the time they come to markets. Deirdre, thank you. As we head to break, checking where the major averages stand now the dow is largely hugging the flat line, down 29 points after being down triple digits similar for the s p. The nasdaq is up fractionally. Dont miss an exclusive with Charles Schwab on Halftime Report on getting zero commissions, changing investing landscape and more squawk alley back after this eak. Servicenow put our workflows in the cloud. This changes everything. Youre right sir. Everything. No not everything, i mean youre still blatantly sucking up to me gary. Brilliantly observed, sir. Always three steps ahead. Six steps ahead. Sixteen. So many steps. You done . A million steps ahead. Servicenow. Works for you. When i see obstacles, i create opportunities. soft music 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. Its how we care for our patients like job. His team at ctca treated his cancer and side effects. So job can stay strong for his family. Cancer Treatment Centers of america. Appointments available now. Welcome back to squawk alley. European markets are closing seema mody has a breakdown of todays action overseas. Stocks turning higher, despite german Industrial Orders falling more than expected banks are in positive territory on a report from Financial Times that hsbc may cut up to 10,000 jobs in an effort to reduce costs. Germany Deutsche Bank announced plans to cut thousands of jobs after the merger, commerce bank, excuse me, cutting thousands of jobs following a merger with Deutsche Bank failing. Shares of verallia, manufacturer of glass, closing lower. Going public friday. Frances biggest ipo in more than two years there are only three ipos in france so far in 2019. Geopolitics in focus, President Trump giving turkey the green light to launch an incursion in northeast syria that til now was seen as an ally of the u. S. In the fight against isis the quick fire decision met with strong push back from european leaders. Spokesperson for Angela Merkel says such a military intervention by turkey would lead to further escalation in syria and would further destabilize the country. Comes ahead of a possible meeting between trump and erdogan next month thank you. Lets get to sue herera for a news update. Good morning, jon, good morning, everyone. Heres whats happening at this hour a u. S. Appeals Court Temporarily blocked release of President Trumps tax returns to new york state investors. It granted delay at the request of the president s lawyers until the Appeals Court could consider the issue. Talks between gm and Union Workers hit a snag according to top negotiator for the union in an email to union members, he said he believes theres not much hope reaching a settlement soon the union received a counter offer from gm sunday. Riot police cleared the streets of Central Hong Kong of black clad protesters and another night of rage. Earlier, two protesters were charged with violating the new ban on Wearing Masks at rallies. And here at home, former president jimmy carter has a black eye and 14 stitches after falling in his georgia home sunday he and his wife still attended an event in nashville. They rallied volunteers ahead of his 36th Home Building project for habitat for humanity wish him a speedy recovery thats the news update back downtown to squawk alley. Carl, back to you. Indeed, sue, thanks. When we come back, has netflix finally met its match . The streaming service bracing as new competition from disney and others comes into the field. Well discuss that in a new note with the dow down 13 dont go away. The biggest challenge of. Owning and running a Small Business is finding the right people. In hiring our first recruiter, we decided to post a job on linkedin. They had to have worked. At a recruiter firm and be bilingual. When we saw ana marias profile. She had a ton of experience in hr. The interview went really well. And she seemed like someone who could really sell mckenzie to perspective employees. We found the best person to find the best person for us. Post a job today at linkedin. Com grow welcome back to squawk alley. Netflix trading well off the may 52week high the next guest expecting the stock to recover, but not as much as he originally thought. Theyre slashing price target from 380 to 300 a share. Lee horowitz is joining us cohead of Internet Equity Research good morning good morning. Thanks for having me. Lots of talk of competition in the streaming space this fall in particular, people churn off netflix already, so based on what we know on why, how are the new Services Going to effect that, how much does that play into the target adjustment as we see competition, it can lead to increased churn as people come on for different titles the bigger concern around competition is more about content inflation. We think that confident investment could go from 15 billion to 40 billion. We think that could effect longer term ability to grow profit margin. Churn is less of a concern. Because of more shows, more expensive shows . Why would they spend so much more a little bit of both. The price for individual piece of content is going up as more enter the market to bid on that piece of content, and as weve seen netflix the last couple of quarters, need a lot of content to keep subscribers from churning off. Could you see lower prices for netflix to compete with new services coming on the market . We see some lower prices, perhaps in the international markets, to grow in places like india. We wouldnt expect them to necessarily lower prices in the u. S. We think theres a pretty good Value Proposition relative to traditional cable costs. We wouldnt see them slashing prices, but the ability to raise prices more aggressively in the coming years could be a question. How does netflix return profit if content costs go up, now theres a ceiling on how much to raise prices, you have powerful entrants coming in with lower priced services, does data just have to be that much better to hit a bulls eye every time with every show thats the problem with shares what can they ultimately turn as profit theyre already profitable in the u. S. And very profitable in terms of incomes longer term are the long term profitability in question as pricing internationally comes down that will perhaps plague shares in the long term. Can they bend principles, go ad supported, they talked about no, no, never never for so long. Not something we would expect theres a lot of money to be made netflix doesnt want to go head to head with the likes of facebook and google in terms of driving supported dollars. The Value Proposition is watching now, Binge Watching adding ads into that, we wouldnt expect them to do that how big a hit if others follow suit, how much do they depend on exposure through ads, through promotional appearances of casts they depend on exposure a great deal disney barring them from one particular channel wont be a meaningful driver. Netflix home page itself is a great place for their own advertisement. When you log onto netflix and see a new show, thats as good exposure as you get. As long as they have that and other Advertising Channels through tv, digital, we wouldnt see that as a material risk. Given the big fall in the stock in the last three months, how much hinges on next weeks earnings for next weeks earnings we think investors are pricing in relative to where guidance is already. Perhaps good is good enough to get relief rally we think obviously sentiment turned negative. How sustainable that is will depend on longer term view of stock. And thats very much in question one of your colleagues said it is a make or break quarter. If they miss guidance again, then what . What are we saying about the quality of guidance . If they miss guidance again and guide lower relative to where people are in the 4 q and you have another bad quarter, shares will come under pressure, could be make or break in that sense. But it could be good is good enough, given what we have seen in terms of shelloell off of sh this quarter thank you. Shares of apple closing in on alltime high, surging 45 this year. Our next guest has a buy rating on that stock, recently raised price target to 265 a share joining us, brian wyatt. Global head of internet and software Equity Research how are you . Hi, jon so apple is right now in the beginning stages of the iphone 11 cycle, rumors swirling last week about not sure if it was demand being better than expected or if it was more the ramp in manufacturing faster than expected. How important is that . Look, were thrilled to see great iphone 11 numbers so far but i wouldnt break out the champagne. Theres a lot of different dynamics around this number one, apple gave forecasts below what they did last year. Number two, they have a tariff kicking in december 15th that might have brought orders forward. Number three, they did lower price on the entry level iphone 11 by 50. That could impact the pro max saw minor cuts, could eat into other iphones. Great to see but as we know, the cycle goes on another year well have to see where it shakes out given that, what is your theory of apple now . Is it about an ecosystem play with the iphone at thecenter, even if the iphone owner is not upgrading that, theyre going to buy other profitable things, including services and thats the thing to track exactly if you looked at apple through the lens of iphone units, you have been dead wrong apple is in the best of times, worst of times now what does that mean in the best of times people give credit for services, services are growing fast. Stock up 44 year to date, being revalued whats the worst of times . Iphone has fallen three quarters in a row big tech is under pressure china is a nightmare in terms of what the trade war means so you cant look at apple on a quarter to quarter basis it is a broader ecosystem play brian, we had reports that antitrust investors in Congress Asked spotify to detail alleged apple abuses we talk so much about antitrust scrutiny now should we be focusing more on potential risks around a company like apple and the app store we cover the big tech names i would say apple is the least of my worries. Elizabeth warren is beating the drum on big tech, going after some Big Companies well see what it means. I think there are some issues, theres some changes that need to be made, but she might not be running. Hillary clinton may be running next year and surprise everyone. You know, at the end of the day, apple if i had to bring it back, it is the least of my worries. Last week microsoft surprised me and quite a few people with some of their announcements of what theyre coming out with at the end of 2020. It is another foldable phone, two screen tablet story. Seen it in different form from samsung, huawei and others around flexible screens. What position, if any, thats different does that put apple in and what it has to come out with in 2020 around 5g and perhaps dual screen devices . There are so many android manufacturers out there, another company throwing their towel in the ring, i dont think it will have a big impact. The ecosystem is a big differentiator the customer basis loyal some case they lost markets. I am not overly concerned. Thank you when we come back, people over profits 2020 president ial candidate joins us to discuss china, the impeachment inquiry and so much more squawk alley is back after this break dow is pite,p pnt osiv u14ois. 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What has to happen with trade talks to get stocks on track we debate that critical question. And Charles Schwab with us live, a rare interview with the market icon. Our call of the day says now is the time to buy uber. Does the Investment Committee agree . We will debate and discuss at noon carl, about 15 away. See you then scott, thanks. When we come back, Corporate Americas quote, undue influence. 2020 president ial candidate tom steyer is releasing his economic agenda, he will explain what it means for business and your money. Deteaiantime, holding on to mora gns after beginning the week in the red. Dow up 20. Ts . It begins with a distinctive approach to managing money. That for over 85 years has focused on keeping confidence up when markets are down. An approach where Portfolio Managers work well independently. And even better together. Who dont just invest, but are personally invested. Can i find a proven approach designed to deliver results . With capital group, i can. Talk to your advisor or consultant for investment risks and information. Talk to your advisor or consultant that could allow hackers devices into your home. Ys and like all doors, theyre safer when locked. Thats why you need xfinity xfi. With the xfi gateway, devices connected to your homes wifi are protected. Which helps keep people outside from accessing your passwords, credit cards and cameras. And people inside from accidentally visiting sites that arent secure. And if someone trys well let you know. Xfi advanced security. If its connected, its protected. Call, click, or visit a store today. Billionaire and 2020 president ial hopeful tom steyer unveiling his economic agenda, aiming that economic power rests with the American People, not big corporations tom steyer joins us i believe from new york. Good to have you back. Good morning carl, great to be with you. Looking over the plan the people over profits economic agenda 15 minimum wage, repealing tax cuts, wealth tax in here you say socialism is not the answer explain that well, i believe the unchecked capitalism we have been having the last 40 years hasnt worked for 90 of americans but what we know is we also have to harness the innovation and competitiveness of the private sector thats driven the dine michl of the American Economy for hundreds of years. In order to harness that, we have to break the corporate strangle hold on our democracy and we have to get back to investing in the American People thats what the government is for, thats the best investment we can make in the future, and weve gotten away from it. Those two things break the corporate strangled hold and invest in the American People are critical changes for what were doing now, carl. Wealth tax, tom people will say 1 , even over 32 million is redistribution. Classic socialism. Well, let me say this if you look at whats happened since 1980, carl, working americans havent had a raise. Thats two generations of working people that havent had a raise when you take into account the increases in health care, increases in rent, and increases in education so when you talk about of money me, for 40 years, weve been redistributing the money in the United States to the top 1 . When you talk about a tax on those assets, that is not the first redistribution weve seen a dramatic redistribution of the money in the United States away from 90 of the people over 40 years. Thats redistribution of wealth. Tommings when you talk about breaking the corporate strangleholds, how does trade fit into that . When im talking about breaking the corporate stranglehold, the fact that corporations have bought our government and control, you know, how laws are written that affect them directly to me mr. Trumps trade war is an abject failure and i would walk away from it on the first day of my administration when youre making a mistake face up to it and end it this is a classic mistake poorly executed and hurting americans every single day. Tom, what do you replace it with china, many would argue, is, indeed, an economic threat the relationship economically between the u. S. And china is off balance. T pp, we walked away from. What do you do different look, i know that china doesnt obey the rules ive spent 30 years as a business person. I watched Chinese Companies and the Chinese Government systemically cheat in terms of closing markets and stealing intellectual property. This trade war hasnt worked one bit and its hurting americans what we need to do when we see someone who is a bad actor in Foreign Affairs we need to work with our allies who are also being harmed to use the instruments that are in place like the wto to take them on in every single instance. I know theyre doing it and i know its wrong but we have to take them on with other people in a concerted effort every single day this trade war is an attempt to get away from the actual granular negotiations and hit them over the head we are tied to china they are are a frenemy were not rooting for china to fail were insisting they obey the laws so that they can succeed legally and we can prosper in the way we deserve to also legally. Its a completely different approach that involves not bilateral but multilateral approach and takes into account working people and the environment. Absolutely different from what mr. Trump is doing tom, when we first had you on in the early days you were pushing for impeachment. Now you got an inquiry well see what pelosi does next. I assume youve seen these reports that mulvaney believes that the whole thing is going to result in a landslide for trump. Hes looking at 45 states. Why is that not true Goodness Gracious lets start with a simple point. This is the most corrupt president in American History. I started the need to Impeach Movement two years ago because i feel that its important in the United States to do whats right. I believe Mick Mulvaney is not exactly an impartial witness here i think what im asking for is for the American People, including the 8 Million People who signed my petition, to be aloud allowed to seat evidence of this president s corruption and coverups i believe when we see them, all of our Research Says Trump Supporters and opposers when they see the evidence they say three things every time. I didnt know it, hes a liar and a cheat, if i did that i would be in jail i believe in the wisdom of the American People thats why its need to impeach is a petition drive this president needs to be held to account and the people to do it are the American People well make the decision. If thats all true, why wont the house hold a formal Impeachment Vote should they . Ive been pushing for a formal Impeachment Vote for two years. I believe its absolutely appropriate to have televised impeachment hearings, let the American People see for ourselves and then lets see if republican senators have the guts to go against the will of their constituents when you can see that you have a corrupt president who has been running this government for his own benefit. Lets see how tough they are when the American People see the corruption thats been going on. Finally, tom, viewers still want to know why didnt tom just spend his resources on funding a massive turnout operation, work on the senate . Have you felt any differently than you did on day one . I dont know if you guys know this, but i stafrrted one of th largest Grassroots Organization in the United States, next gen america. In 2018 they did the largest youth Voter Mobilization in American History i also teamed with seven National Labor unions to do something called for our future which is knock on doors. We knocked on 15 million doors in 2016 and 10 million in 18 were going to continue those efforts. Whatever people want us to do were already doing it. Tom, its worth to look at your plan. Well be hearing more from you in the days to come. Tom steyer, thank you so much. Thank you so much. Squawk alley is back in three minutes. Dont go away. I am royalty of racing, i am alfa romeo. [spokesman] if youve tried colleg group cheering shed, snhu lets you transfer up to 90 credits toward you bachelors degree. [woman] it doesnt matter how old you are, you can do it, you can finish. [spokesman] finish your degree at snhu. Edu quadrupled their money by 2012 . And even now many experts predict the next gold rush is just beginning. So dont wait another day. Physical coins are easy to buy and sell and one of the best ways to protect your life savings from the next financial meltdown. [narrator] today, the u. S. Money reserve announces the Immediate Release of u. S. 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Legendary stock picker jim at the delivering alpha conference for more ideas visit deliveringalpha. Com. One of the headlines made that day longe with Lee Cooperman talking about elizabeth warren. Setting the stage for bigger, Broader Market discussions as senator warren picks up steam here in the polls. A name im watching is smile direct that stock down about 4 despite the fact that youve had a flurry of analyst notes initiating coverage. Largely bullish after we had the ipo last month stock still under pressure though yeah. Apple flirting with an alltime high what a defrps a few reports and positive rumors about an iphone, when is the last time we had that, its been years. Now we want to believe nikkei obviously the week is going to have a few earnings sprinkled in well get dominos tomorrow. Im scott wapner. What all of it means for stock its 12 00 noon. This is the Halftime Report. Stocks coming off the Third Straight weeks of losses get ready for another volatile week the best ideas for this market straight ahead. The fangs off their highs. Is there value hiding in the names. What analysts are turning their attention to uber down 30 since its ipo this year it got a huge upgrade. Is the bottom in for the stock in our call of the