Good monday morning, welcome to squawk alley, im Carl Quintanilla with Morgan Brennan and jon fortt. We will start with uber. They lose their license to operate in london. Regulators citing a pattern of failures from uber that place passenger safety and security at risk cnbc contributor kara swisher joins us to talk about this. How are you doing. Not too bad we will see how the appeals process goes, the big question is whether other cities follow suit. Its a troublesome thing. Uber has been struggling for a long time in these cities and actually the first thing that the new ceo who came in after Travis Kalanick did was go to londer to assuage the critics there. It was one of his First International trips and it was very soon into his becoming ceo. So its really problematic if they dont get these cities straight, especially london which i think is its biggest revenue generator after the United States. The thing is it comes after a couple of really big stumbles including daras unfortunate interview he did with axios where he seemed to not defend the saudis, but wasnt certainly wasnt didnt he misspoke, i guess. I dont know what else to say. And then obviously theres issues around the economics of the company, theres the stock sales and things like that so its not a great time for him as a ceo kara, trying to pit this inside a larger tech narrative it seems like there are some platforms that had a maybe if not growth at all costs, growth, growth, growth strategy. Yeah. Now theyre having to go back and add costs to figure out how to either comply with regulations or just operate the platform in a reasonable way going forward. Where do you think this ends up with uber . Does it help make their Business Model more viable, shake competitors out or is it a continuing headache for them well, this is a team that ive been talking about a lot. Its very easy to have Great Results when you dont pay all the costs. Ive talked about this with facebook in content moderation, with uber and lyft its not just uber, these prices are so low and its great for consumers but its at the expense of actual economic viability. So when youre looking at an uber ride that is so like how can they do this how they can do this is they lose money on t the request he is once you figure in the costs of doing proper regulation, proper checking, possibly paying employee benefits, thats another thing the ab5 in california, these things tend to add up and these businesses look a little less growth you know, as good, i guess and the growth at all costs idea is in order to get market share but once you do you have to have a business that justifies itself you see this all over the internet space of companies trying to justify themselves, especially if there is a trend towards more Public Markets really want them to pay more attention to the bottom line kara, in london according to the tso these unauthorized drivers and the way they were able to upload their photos and basically pose as other drivers, that 14,000 trips in london alone. Yeah. It begs the question about whether this is a practice that is happening in other cities as well i guess really just basic basic question to you on this, how could the company go this long without realizing that thi was happening . Well, thats an issue of a lot of these companies they obviously didnt have systems in place that ensure these things dont get gamed essentially. Airbnb had this problem of party houses, oh, we didnt realize party houses i kind of knew about party houses, a lot of people did. Its putting systems in place to deal with the problems that are going to come that are inherent in any business you have that has an analog base so safety of consumers, which is something that dara has pushed heavily and have made lots of improvements is something thats critically important and the vetting of drivers and make sure the drivers are insured, make sure they dont have criminal records is a critical part of this business in order to keep it going properly, besides all the other issues including price and competition and everything else. Kara, really click, as they begin to touchdown audio and video recording of rides, whats it going to do to the privacy versus security debate another big issue this is the thing, these companies sort of growing up and to the right, they all run into the reality of running a business, whatever business it happens to be. Obviously i was thinking about t do you want your things recorded, maybe you do, maybe you dont. Who has rights to those recordings what if someone records you without your permission . Its very confusing, i think i didnt quite understand how its going to be deployed. You know, its a move towards the idea that we make it safer and safer and were not going to avoid being on camera in the future more and more, but its still you know, its another what i would like is for them to vet the drivers and they have insurance. That to me is table stakes. Lots of layers there, care rachlt lets turn to tesla really quick obviously the surge in reservations for that cyber truck according to musk. Phil lebeau that is that in chicago. The total stands at 200,000 reservations for the cyber truck. When they unveiled this on thursday night we knew they were going to open this up for 100 refundable reservations at the time, a littleunclear how many they were going to get the most popular reservation is for the 49,900 dualmotor cyber truck, 42 of the reservations coming in there. How does this compare with the model 3 reservations with he saw back in 2016 after about three days there were far more model 3 reservations than there are for the cyber truck and with the model 3 eventually tesla says it got up to 455,000 reservations back in 2016 and 2017, but remember, with those reservations, guys, people were putting down a 1,000 refundable deposit and the reason the stock moved higher as you take a look at shares over the last three years, it moved higher after those model 3 reservations in part because people said, okay, they have to commit to building this vehicle, this is part of the longterm growth strategy. With the cyber truck remember its just 100, far less to put down a reservation and also there still remain questions about whether or not they will build this at a large volume in other words, is this going to be a niche truck which many analysts believe it will be or if it will be a larger vehicle at any point you still have 200,000 people who have said put me down for one, i will throw 100 at you. Do we have any guidance or data from the company on how many of these reservations historically with other models have translated into actual sales . No, we do not, and thats been asked ive heard that on analysts calls, also heard analysts and reporters ask can you update on us on where reservations are particularly with the model 3. After a certain point im going off memory here i want to say a year, nine months later e long musk said, no, were not going to talk about reservations anymore. Its done. We are now strictly talking about production here. There is no way of knowing how many of these 200,000 if you are going off of history how many of these might ultimately turnint actual orders. Yeah, we will see or maybe we wont see. Phil, thank you. Kara, is this essentially either fan club deuce o you se starter . Does it have longterm bearing on the viability of the company . Well, i reserved one or you, jon, and for all of you, actually i dont know is it a hummer is this the hum or is it something more substantive can it be a truck like the ford 150 . Away from that video that this he showed, you know, can it become a car like that, a truck like that, which a lot of people obviously its a best seller i dont know i dont know i think its incredibly a lot of showmanship including throwing the metal ball at the car which cracked me up. But, you know, this is just part of sort of elon as hes got this amazing idea pretty cool looking, its a question of how quickly they can deliver them, which is always an issue with them and whether people are just sort of why not sign up for 100 so who knows, its sort of like the whole story of tesla who nose. Maybe it doesnt have to be close to an f150. Maybe because the model 3 is so pedestrian looking, this is like a branding opportunity for them. Yeah, i think it is its cool looking, it reminds me of the hummer, you know, a couple people bought them, it was a small niche product, i think it sold, i dont know, 50,000, 50,000, 60,000 in the United States. I know the military used them. Is it replacing sort of large pickup trucks . Is it just the cool factor if its the cool factor its a very small group of people its still cool. So im not sure, but it certainly is a great branding exercise it looks interesting you know, it was a great rollout, it was funny, their mistakes, the whole thing of dragging the 150, its all showmanship by elon and thats not a negative thing necessarily, it keeps a lot of buzz around the company. Yeah, and certainly news k a few weeks ago actually mentioned cyber truck at a military event at the air force space day, pitch day as well, kind of it you think in cheek pitching it, but certainly that could be something to watch kara, really crazy question here, but the fact that he orders instead of preorders, we know the settlement thats in place around him tweeting Material Information any reason to think that this could be an issue . I dont know. I just did an interview with one of the sec commissioners and they were still smarting from their back and forth with elon and they certainly are paying attention to him that did not go well and i dont think he can afford to cross them too many times, but, you know, brazenness seems to work across the United States these days, so, you know, who knows what the price will be if hes not vetting those those i mean, those yeah, the tweets. So, you know, well see. Well see. I dont know if that was such a violation, the others were pretty clear violations of what he had promised to but, again, its all part of the same elon thing, hes got a really interesting new product, who knows how many theyre going to sell, who knows in it will become an enormous hit its an interesting innovative look at how you can rethink the truck. Theres nothing wrong with that. Its just a question of whether these preorders will translate into orders, whether this will be a big product line or more a side product line, whether it would move into the military theres all kinds of questions, none of which have answers right now. Plenty of space between today and those first deliveries finally, kara, your latest column we are still talking about political ads and whether or not facebook, google are going to follow in dorseys footsteps. Google didnt google did a number of mish ears as you knew last week n fact, during the impeachment hearings to really rein in political ads. It was interesting because dorsey went sort of all the way twitter went all the way saying we are not going to do them google had a modified version, were going to do them but more stronger rules around them and they were quite substantive rules they are putting into place including dealing with demonstrably false ads which was important, i think, an important statement from google that these are not okay now the question is is the pressure on facebook to do anything at all or, again, the word brazen, are they going to brazen it out and say were going to let it wild and be as wild west as weve been. You saw pressure from the Trump Campaign manager around it tweeting at facebook around this i think theyll probably make adjustment but maybe not go as far as google because Mark Zuckerberg has staked himself pretty far out on were not going to do that much. Meantime, kara, youve got snapchat saying that its fast checking the political ads that are running on its platform as well it does seem like its shaping up to be quite a case study because each company is implementing their own methodology and their own guidelines and its different each one across the board. There was a joke going around is if you want to change Mark Zuckerbergs mind on a product just have snapchat make it and then they will copy it i think they will probably do something along the lines of google, maybe a little less microtargeting, a little more control, maybe demonstrably false things they will take down i dont know they seem to be the outlier and they can be. The issue is they are the only one that really counts, besides google, snapchat and twitter thats great and i admire both of them for doing t but the only thing that matters is what facebook and google do and really the only thing that matters is what facebook does so well see. Is there more danger at this point in facebook remaining the outlier or in them ticking off, you know, one side or the other with restrictions because seems to me theres going to be scrutiny, the ads running on facebook particularly in this cycle right now. If anybody thinks they can blame facebook for tilting things one way or the other because of a an ad with false information in it, because of some dubious targeting, boy, i mean, talk about a hot seat, its probably going to get even hotter. Maybe i look at their results, their results are great, theyre doing fantastic. Whats the cost for facebook for doing this almost done from a real perspective from a stock perspective, from a business perspective. Again, this idea of just continuing to be brazen about things, thats what theyre doing. So if this is what they believe and they dont want to make these changes and they have their arguments i wouldnt be surprised if they stuck to the things theyve said before theyve gone back and forth. Theyre certainly contemplating it because you have nick klegg saying that they are, carolyn was at a media saying were not going to change it but 15 minutes later gave an interview saying were contemplating changes. I suspect you will see some changes around the edges but probably the least of all of them i think google really did strike a nice balance in terms of not banning them outright but making some important changes and i think that was the responsible thing to do and it doesnt mean you have to ban them, it means you have to think about it and have this discussion internally of your impact on society and elections. I dont know if there will be any price for facebook, maybe some more down the line from a regulation point of view, but right now i dont know i dont know if they will have any price to pay stock back above 200, at a fourmonth high today. Yep. We will watch that. Kara, hope to see you before thanks giving, but if not have a Great Holiday into bye happy thanksgiving happy thanksgiving. When we return, hp rejecting xerox again, setting up the possibility of a proxy war david faber joins us next th e latest after the break as the s p and nasdaq both reach fresh record highs, stay with us i am totally blind. And non24 can make me show up too early. Or too late. Or make me feel like im not really there. Talk to your doctor, and call 8442342424. Negotiations on a potential combination of hp and xerox getting spicy over the weekend david faber is back at post 9. David, this went from we look forward to the pleasure of your reply to your mama wears combat boots pretty quick. Its evolved to where we kind of thought it might be initially. Of course, when xerox made their unsolicited bid hp responded as you say very favorably almost. No longer. They rejected of course last week, then xerox rated a little while, but then they put out a fairly nasty letter of its own, questioning, well, you want Due Diligence on us or you will at least do some, but you wont allow us to do Due Diligence, we dont understand it, and hp responding with their own letter, as you say, explaining the reasons why. Thats the first time we have seen some of the questions, we have them here, total Contract Value questions, in excess of revenue decline, suggests revenues may decline faster in recent years, tcv was down 13. 9 and note churn was 18 both of which they say are data points that xerox has stopped providing. It goes on to sort of have them question synergies, question the numbers and explain why they wanted a lot more diligence when they were talking back in august and september about an hp deal to acquire xerox. Kind of went from at least me getting the impression, well, lets see if this makes sense to, boy, we really hate this deal you really have to convince us that there is any rationale behind it at all i thought maybe hp would come back and say, well, maybe it would be worth us acquiring you but they seem to be questioning the core of xeroxs business and viability here. They do to your point i think thats exactly right. They even question, in fact, the companys stated presence in the marketplace once the fuji film well, its been exited already, but once the rights they have expire in i think either 12 or 24 months where they talk about synergies here in terms of Public Information and they question them they basically go on to say you seem to just be saying the costs youre going to take out and the costs were going to take out equal the costs combined we will take out not the actual synergies that will come from putting the two companies together in terms of additional cost then they go on as well to question the fuji film joint venture saying you mortgage their future for a short term cash infusion. Thats the come watt boots i was talking about. This has the possibility of going to a proxy fight, i think you have to increase that possibility based on everything ive been hearing where they would go after the entire board of xerox or some component thereof to show them shareholders want to do this and we could be waiting until april. One of the other deals ebay selling stub hub to via go go, we spoke to their ceo in the last hour as well. I had a chance to talk to ebays interim ceo president one request he will be what are you going to do with the proceeds, a significant amount of money didnt tell me much other than we will continue our Capital Allocation plans which include buy back, dividends and m a for the marketplace business where theyre looking to try to reignite growth. It was a great investment for them 3 1r0 million in 2007, exited 4 billion thats a 17 annual compounded growth rate. Is ebay turning into the hp of home commerce they had gc commerce, they plit that off, they plit off paypal, now theyre splitting this off whats going to be left . Its just a marketplace business you tell me what the growth looks like for that. Thats been the key question as to whether they can rei go vig rate that, maybe as can become more of a business for them. They do have the classifieds still, they are not going to do anything with that at least for this year is what i was told we will have to wait to see until next year if they jettison that. Can we cram more in between now and new years serious question. I think thats a possibility. People steam to be fairly busy theres always a question of can you get to the finish line on things for regulatory, for social issues, for so many of the Different Things that come up not to mention if you are a fairly large enterprise the current economic environment, you may have some questions, but there does seem to be a decent pace that would seem to me we might get some stuff between now and yearend. Big appetites this time of year. A true merger mob, we can actually say it and mean it. I saw 63 billion if you include some of the tiny european stuff announced, formally announced thats a big day. David faber, thank you. Getting a check on where we stand across the major averages, the s p and nasdaq hitting all time highs earlier in the session. Tech and csuonmer discretionary the two sectors leading the charm right now. Were back in a moment johnsbut were also a cancer fighting, hiv controlling, joint replacing, and depression relieving company. From the day youre born we never stop taking care of you. Welcome back to squawk alley. European markets set to close in just a moment. Seema mody joins us with a breakdown of todays action overseas and, morgan, we are higher across the board, on pace for the biggest gain in three weeks for the stock 600 on trade headlines. Take a look at the uk, signs that the worst is over for the retail sector, just in time for the Holiday Season now, sales were broadly unchanged in november, but that did end six straight months of falling demand that upbeat data lifting shares of uk retailers, marking spencer, king fisher and next meanwhile, in germany Business Sentiment picking up for the third consecutive month, another sign of economy bottoming out, ing economists warn bottoming out does not signal a rebound. While manufacturing firms are planning Production Cut backs and the sector remains in contraction sentiment hit a fourmonth high adding to the bull case for european stocks. In morning Morgan Stanley publishing a new note saying they continue to see more opportunity in investing abroad versus here in the u. S. With the s p 500 now up nearly 25 in 2019 guys, back to you. Thanks, seema news update time sue herrera has that back at headquarters sue. I do, indeed. Thank you, jon here is whats happening at this hour, everyone mcdonalds has agreed to pay 26 million to settle a Class Action Lawsuit with some California Workers who claimed the restaurant violated state labor laws, including denying breaks and failing to pay overtime. Mcdonalds said that it believed that it was in compliance with those laws the creator of the worldwide web wants to fix it. Timber nard lee and google and facebook are backing a contract for the web which calls for companies to respect Consumer Data Privacy and for governments to ensure Internet Access for all. Its beginning to look a lot like christmas on capitol hill at least a 60foot blue spruce arriving this morning after making a 2,000 mile journey from new mexicos Carson National forest. The tee will be lit next wednesday. And speaking of the holidays when it comes to gift giving 74 of shoppers will not increase their spending this year according to bank rate the biggest reasons are concerns over finances and the economy. Which is interesting given the fact that we have the stock market at all time highs all right. Youre up to date. Thats the news update this hour guys, back downtown to you carl. Sues, thanks very much. Shares of uber continue to fall after losing its license in london we will break down what comes next for new yorks former tlc after the break. Stay with us. Announcer the cnbc Trend Tracker live data board is brought to you by the cme group. Im a regular in my neighborhood. Announcer cme group, where the world comes to manage risk when you shop small you help support your community from after School Programs to the arts so become a regular, more regularly. Because for every dollar you spend at a Small Business, an average of 67 cents stays in the community. Join me and American Express on Small Business saturday, november 30th, and see how shopping small adds up. Fidelity has zero commissions for online u. S. Equity trades and etfs, plus zero minimums to open a brokerage account. With value like this, there are zero reasons to invest anywhere else. Fidelity. The amount of Student Loan Debt i have, im embarrassed to even say. We just decided we didnt want debt any longer. I didnt realize how easy investing could be. Im Picking Companies that i believe in. I think sofi money is amazing. Thank you sofi. Sofi thank you, we love you. Dow session high was up 153, we are up 115 right now, still hanging on, though, to record highs for those second two, the s p and the nasdaq we are back after a quick break. Most people think of verizon as a reliable phone company. woman but to businesses, were a reliable partner. We Keep Companies ready for whats next. man we weave security into their business. Virtualize their operations. woman and build ai customer experiences. We also keep them ready for the next big opportunity. Like 5g. Almost all the fortune 500 partner with us. woman when it comes to digital transformation. Verizon keeps business ready. If youre on medicare, remember, the annual Enrollment Period is here. The time to choose your medicare coverage. Begins october 15th and ends december 7th. So call unitedhealthcare and take advantage of a wide range of plans with a variety of benefits. Including an aarp Medicare Advantage plan from unitedhealthcare. It can combine medicare parts a and b, which is your hospital and doctor coverage. With part d Prescription Drug coverage, and more, all in one simple plan. For a low monthly premium or in some areas, no plan premium at all. Take advantage of primary care doctor visits. Preventive dental care and an eye exam. All for a 0 copay. Plus, earn rewards for completing other Preventive Care activities, like flu shots and annual physicals. You could also get over 150 in free health and wellness products. So nows the time to look at unitedhealthcares variety of plans, and let us help find the one that works best for you. Also ask about our ppo plans that let you see any doctor who accepts medicare, without a referral. And take advantage of innetwork costs, at home or traveling, when you see doctors in the Unitedhealthcare Medicare national network. With many of our Medicare Advantage plans, youll have 0 copays on the most common prescriptions. In fact, last year our Medicare Advantage plan members saved an average of over 6,500. And with renew active, enjoy a free gym membership and up to 115 in rewards for staying active. You can count on our guidance and support to help you get the most out of your plan. We can also help you schedule appointments or find a specialist. Annual enrollment ends december 7th. Start taking advantage of all the benefits. Of the only Medicare Advantage plans with the aarp name. We make it easy to enroll, too. So call unitedhealthcare or go online today. [sfx mnemonic] a lot of ammo for the bulls today as the china headlines overnight and over the weekend pretty constructive here china rolls out new ideas to protect ip, global times says a phase one deal is, quote, very close. And then fold in all the m a we have gotten announced, lvmh, tiffany, schwab, tv, novartis, ndco, you have a potent mix today. Semiconductors having a good morning, nvidia up 4. 5 , Applied Materials up about 4 as well, but, i mean, thats not anything new, semis have been doing well for quite a while. City regulators in london have announced uber has been stripped of its license to operate in the city as of today. Uber has said it will appeal the decision it can continue to operate while it does appeal joining us now is former chair and ceo of the new York City Taxi and Limousine Commission mere i cant joshi good morning. Good morning. Are you priced that london took this hard line or was the writing on the wall . Theyve been hinting at it for quite a while. They issued a probationary twomonth license which had a series of safety concerns they outlined that they needed addressed. It wasnt, i dont think, a surprise particularly. I think whats important to underscore for the public is that it doesnt really change daytoday operations. So uber will continue to operate, they can continue to bring on new drivers, there is a magistrates process which takes quite a bit of time. Uber had been accused and admitted to basically allowing drivers who werent allowed on the platform to drive by uploading their photos to somebody elses profile, 14,000 at least 14,000 trips were taken this way where th riders were uninsured, in danger i take it this is something that doesnt just happen in london, presumably its happening in the u. S. As well did you see this happening when you were watching this closely maybe you still have and is anyone in the u. S. Policing it it certainly is happening worldwide, beijing there was i believe it was didi had an incredible problem with illegal drivers joining their platform under pretext. So its certainly a problem thats in the apps doing business in all major cities in new york city we require that these companies provide us with data on the exact driver and the exact vehicle and they are required to synch up with active drivers and active vehicles three times a day so that youre caught out when sending out unauthorized drivers in vehicles so it allows the city to police this a lot more closely. No method is perfect around this, its a systemic problem, but its certainly a lot closer attention. But in other major cities it is alive and well lots of times either drivers give out their credentials, other people take their credentials. There is not a lot of checks and balances on the edit of the driver and whether its the one that was actually authorized to drive by the regulator or by the company. Mira, i was just going to basically ask you that very question which is i know you do focus on and communicate with quite a number of different cities and regulators in those cities around ride sharing is this something that is going to be adopted, for example, the rules, the policies that new york city has in place do you expect to see that adopted in more places is it being adopted in more places well, its certainly probably a push for it in places that are collecting data like new york city and for cities that are considering collecting data it provides themwith a pretty goo method of how to check driver identity and make sure that theres more validation going on what i think i find a little troubling about the london situation is uber is proposing biometrics, facial recognition as a means of validating drivers. Now, i think drivers may not enjoy that i think thats putting it mildly and second its a joe tear thing, one company is doing it but they could stop doing it at any time there is a risk to uber it puts them at a disadvantage a lot of companies not applying facial recognition may be for attractive to work for i think there should be a regulator approach that is consistent and applies to every company. How many costs are there for Companies Like uber to get up to a reasonable standard that maybe investors are not considering . Already stocks like uber and lyft, specifically uber and lyft, are under pressure on the expectation that they are going to have to make money eventually and so their costs that they are going to charge are going to go up, its going to affect demand. At the same time it seems like theres things that the Companies May have to deal with and it seems like investors arent sure who you to factor that i would guess and hopefully its not a completely irrational guest, but Something Like employing facial recognition and then thats not enough, you have to make sure that its working and that its catching instances when people are trying to get around it is not a minor endeavor once you offer it in one city theres going to be pressure that you offer it in others, combine that with probably likely litigation by drivers groups who will be opposed to that, those costs will certainly add up if thats the approach that they take i long that that will be a costly one and a lot of times theyre taking that approach because the alternative which is sharing regular data with a regulator is something they want to avoid at all costs. So theyre making a decision about where they want to spend money and you will have to take the long view about whether thats the right one or not. Investors will have to watch that thank you for being with us. Thank you lets get over to the cme and get the santelli exchange. Good morning, rick. Good morning, carl. Like to welcome my guest jim karen, Global Fixed Income portfolio manager. Jim, thank you for joining me. Gets get right into it in your writing today you believe that xx has bottomed in 2018 what do you think on the who are zon that has led to you that conclusion and what would that mean for investing in 2020 . Look, i think in 2019 what weve seen was a mid cycle reset by the fed which meant that the Manufacturing Sector slowed down, you could see that in the ism numbers. Weve been seeing ism and pmi starting to pick up. If 2019 was a mid cycle reset as termed by the fed 2020 may be a cyclical Recovery Period if that happens the cyclical sector which in equity terms that would be more value but in some other areas more industrial manufacturing, i think that can actually even take the place of the consumer a little bit. Weve made a big deal about the Consumer Holding up the economy, i think manufacturing and industrials i think they can actually pull some weight as well and you could get a modest mild pickup in growth and i do think the fed is going to let the economy run hot, the bar is really high for them to hike rates again. You know, jim, many would agree with your last statement, the fed is going to let the economy run hot, and i would guess that should inflation ramp up but it doesnt look like its going to anytime soon that would be included under run hot, but there are risks to running hot, just right off the bat i guess the first risk i see is that many are long duration, heavy duration, of which you have written about, Motor Vehicle theyre very susceptible to a quick rise in Interest Rates with risk parity and volatility low now, if that should kick up, wouldnt that create a series of events that could disrupt the markets . Rick, youre absolutely right. I think it will. I think the initial stages, though, of what gets rates to actually rise if its good data, if its a recovering economy, a cyclical recovery the markets will take that very, very positively, but wung you get tenyear notes up to 2. 2, 2. 25 i think thats rlg enough. If rates rise further than that that could create a bit of a contraction and slowdown the bottom line is were probably in a range, have a mild recovery, needs are poised to move a little higher, they cant move a whole lot higher, its going to put a drain or at least a strain on significant Economic Growth and really, really running hot. I think, look, we may be looking at 2 growth for 20, maybe a little higher than that, but nothing terrible listen, i mean, the point is that we have been in a Global Economic slowdown if you look at gdp. I think that were going to stabilize and even recover i think thats good news, but i think theres limits to that good news. Now, my final thought, i want to go back to where we started capital expenditures, there is little doubt that that is the missing ingredient to really see some stronger fd numbers, maybe back in the 3s in your final sean, what is it going to take and when will these checks be written by the corporate offices to start expanding things Like Research development and other projects i think its happening already, rick, and i think its really happening in the i. T. Space and the thing is that its a bit of a lag, so i think we are going to start to see that in the First Quarter and in the Second Quarter i dont think its going to be very, very long and i think industrials are going to follow very, very shortly thereafter. Excellent jim, always a pleasure to hear your thoughts, especially regarding the economy in 2020. Morgan, back to you. Rick santelli, thank you. After the break, the reporter behind the investigation into amazons workplace practices. Thats next. Dont go anywhere, were back in two. Im scott wapner here is whats coming up mario grivelli is with us, were talking stocks, the outlook for the markets in the year ahead plus we will debate what other stocks could be in play on this big merger monday. And new york jets linemaner Brandon Copeland joins the Investment Group today, he teaches an investment class at his alma mater and will tell us the investments he hopes to help with his students. See you then, scott, thanks. Pinterest making a couple retail friendly moves this morning ahead of black friday. Julia borsen is in los angeles with that news. Thats right, john. Bin tres making two big changes designed to drive shopping on the platform ahead of the all important Holiday Shopping season this morning pinterest unveiling the Pinterest Shop with hundreds of products from small and medium businesses. Will start with 17 businesses and will expand to retailers they are testing a shop tab at the top of users home feeds this is the first time the company has promoted a personalized boutique for users. It features custom shopping options. Now, these announcements follow on the companys recently announced brand and price filters making it easier to brows products not just based on type, but also on brand and price. The key thing about shopping on pinterest is that the company does not take a cut of sales on the platforms but it does hope that making it easier to buy will drive advertising dollars pinterest shares are down over 40 since they hit an all time high in august mark mahaney are an outperform rating on the stocks points to retailers interest in driving sales through the platform with 75 more merchants uploading their catalogs to pinterest in the Fourth Quarter the toll thats having on factory workers. Finding that worker injury rates are likely under counted and, in fact, higher than industry averages joining us now the reporter behind the investigation reveals. Will evans, we have reached out to amazon for comment and have not heard back thanks for being with us today thanks so much for having me on you spent the better part of the year investigating amazon and its warehouse conditions what did you find . We found that theyre injuring a tremendous amount of people the injury rates in their warehouses, for the warehouses we were able to find were double the industry average for their serious injuries so this is like as many as some warehouses had 15 serious injuries for every 100 workers up to a quarter of the workers were being injured this is these are extremely high injury rates, and amazons official record. So warehouse work is not easy work its grueling work how much of this is tempo . How much of this is technology and when you talk about higher rates than what you see on average, what kind of numbers are we talking about yes, so for the average for the warehousing industry youd expect to have four serious injuries per 100 workers at the amazon facilities we looked at it was above nine per 100 workers and some of these warehouses were up to 26, almost 26 per 100 workers thats just unheard of, six times the average. And yet over and over again we heard that the reason behind it is just how fast these warehouses move, how fast the workers are required to move each worker is tracked down to the second how many boxes they have to get, they have to process per hour, hundreds of boxes per hour they have a specific target. If they dont hit the target they know they will get written up and eventually fired. And so when they when theyre confronted between having maybe losing their job and having to take shortcuts or put this toll on their body, they do that an end up getting hurt, they injure their backs, shoulders, knees, repetitive stress injuries they have strains that put them out of work for months i talked to people who are basically going to be in lifelong pain and they get replaced by the next worker who can hit the quota. Amazon has said that they have these robots, these technically advanced warehouses with robots that make the job easier for workers. They dont have to walk for miles. The robots bring the packages to them, but what we found was that actually the warehouses with robots had some of the highest injury rates what we understand is the workers actually have because the robots make things more efficient they have to work faster they have hundreds more packages to deal with an hour, so theyre going faster and faster and faster with these robots, and their bodies are breaking down they are now what do you think why do you think these issues in the warehouses arent showing up more in Online Reviews in particular ive looked at the Amazon Warehouse worker reviews and they have around 40,000 plus of those. Walmart also has them. Walgree walgreens, costco, others, 3. 5, 3. 6 star ratings out of 5. Is it just that the numbers are so big that these injury cases and conditions dont show up as clearly . Why isnt amazon getting a 2 rating out of 5 if their warehouses are so much worse than others . I cant speak to the Online Reviews so much as i know ive talked to a lot of workers who didnt post an Online Review theyre at home, theyre in pain a lot of them didnt want to speak on the record about amazon because, honestly, they feel amazon has all this power and money and who am i im a lone individual. Dont put my name in im afraid there are a lot of people like that out there the Online Reviews, i dont know these are the actual injury records of amazon. Amazon tracked it according to the government standards and so its easy to compare amazons numbers versus the Industry Standard versus anyone elses this is like what theyre held to by the government these are the records, and they show the true toll you have warehouses with hundreds more than 400 injuries in a year thousands across the country where is osha on all of this . So osha is, you know, requires companies to track this data, but theres no limit for how many people you can hurt for the injury rate. The high injury rates can trigger inspections and so you would expect that there would be some inspections here. What i found, even when a guy died in indiana, was crushed by a fork lift, osha came in. They cited amazon for serious safety violations. All of a sudden those safety violations disappeared they were dropped. I called the osha inspector who was on the case and he told me go ahead he actually had political pressure from on high, up to the Governors Office to back off that case. Wow in the end amazon didnt face any citations. All right, well, thank you for joining us the podcast is out and available and releases at 12 30 eastern. We appreciate your time. Separately for amazon, the latest ranking of americas bestrun companies, amazon did lled in at number one in 2019 foow by microsoft, alphabet and cisco. Squawk alley returns after this break their medicare options. Ere people go to learn about before theyre on medicare. Come on in. Youre turning 65 soon . Yep. And youre retiring at 67 . Thats the plan well, youve come to the right place. Its also a great time to learn about an aarp Medicare Supplement insurance plan, insured by Unitedhealthcare Insurance Company. Heres why. Medicare part b doesnt pay for everything. Only about 80 of your medical costs. This part is up to you. Yeah, everyones a little surprised to learn that one. A Medicare Supplement plan helps pay for some of what medicare doesnt. That could help cut down on those outofyourpocket medical costs. Call Unitedhealthcare Insurance Company today. To request this free, and very helpful, decision guide. And learn about the only Medicare Supplement plans endorsed by aarp. Selected for meeting their high standards of quality and service. This type of plan lets you say yes to any doctor or hospital that accepts medicare patients. There are no networks or referrals to worry about. Do you accept medicare patients . I sure do see . Youre able to stick with him. Like to travel . This kind of plan goes with you anywhere you travel in the country. So go ahead, spend winter somewhere warm. If youre turning 65 soon or over 65 and planning to retire, find out more about the plans that live up to their name. Thumbs up to that remember, the time to prepare is before you go on medicare dont wait. Get started today. Call unitedhealthcare and ask for your free decision guide. Learn more about aarp Medicare Supplement plan options and rates to fit your needs oh, and happy birthday. Or retirement. In advance. Obviously a good day for the bulls. The russell is having a very large today as well. Lets get to the judge with mario. Carl, thanks so much im scott wapner the record run for stocks, new milestones again for the s p and nasdaq as carl said were trading with super investor Mario Gabelli it is noon and this is the halftime report. The rally picking up steam. New record highs Mario Gabelli weighs in with his best ideas for this rally. Netflix getting downgraded but its been on a rally well debate in our call of the day. Football and financial advice