good thursday morning. welcome to "squawk alley." i'm carl quintanilla with morgan brennan and jon fortt at post 9 of the new york stock exchange a bit of a sell-off at the open, but answered a little to the upside down 100 bob pisani >> we bounced, drifted back down and now we're down about 100 points on the dow. this is a pretty modest response considering if number of coronavirus cases has expanded dramatically, not surprisingly the china etf weaker, industrials as well, bank stocks negative initially, now positive still a pretty modest response to the news. coronavirus, a lot of different stories. alibaba said it's possible we could have a significant impact on china's economy potentially affect the global economy. ralph lauren talked about store closures, two-thirds of stores are closed nestle says operations have resumed but with a lower amount of operations overall. nu skin talked about significant decline, 20% to 25% decline, down 15% some ups and downs here. retailers, these stocks have practically become day-trading stocks they've been up noticeably in the last couple days, down noticeab noticeably some have significant operations in china, some do not. they seem to go up and down much more severely than the overall market they've become high beta stocks. the impact on earnings, 80% through fourth-quarter earnings season, the first quarter, you see january 2nd, we were expecting 6% increase for the sc, this sc first quarter, and that's the quarter we're in now it's come down in the last few weeks. you see a small decline in earnings the middle of the season but 4.9% to 3.8% is a little more aggressive than normal and that is the impact of china. if i had to characterize it, i would say coronavirus so far has been having a discernible impact on earnings estimates for the first quarter but not a dramatic impact i think that's a fair characterization carl, back to you. >> bob, i'll take it you mentioned coronavirus and alibaba. we'll talk more about that not only is alibaba out with earnings but there is some coronavirus impact on that and more to discuss. joseph berger joins us and devin parrot guys, good morning joe, i want to start with you. you say in the short term these coronavirus concerns, the spread in china, has people turning to e-commerce that is actually giving some attention and volume to alibaba. if it goes past may, there's deeper impact on the chinese economy. there's deeper impact on a lot, potentially, starting to get into tokyo olympics preparation if it goes that long >> yeah. let me first start by thanking the team in shanghai for their tireless and delgado kated work supporting our clients as we look at alibaba and q1, there is obviously a lot of attention on the coronavirus and people's habits and they're changing in their habits right now. we're seeing people spending more time online ordering goods because they're not going out and going to restaurants or going out and buying staples like their grocery items to it is hard to predict what's going to happen going into q2, but we are seeing an increase in people going online right now, certainly in q1, and going to use alibaba as that place where they can find the things they need right now so it's hard to predict the future, but right now, it is certainly something that we're seeing with respect to baba. >> right devin, when you look at the new numbers that we're getting out of china, the new methodology, and then you look at what alibaba said on their conference call, do you have a clear sense yet of even current impact, not to even speak of future impacts? >> i don't think we do my guess is that the numbers were probably being understated and the methodologies changed, just got it back to where it probably has been. i don't think you actually saw 10,000 or 12,000 new cases in a sing dale which wasn't happening. they or not also counting the asymptomatic people who are testing positive, so i still don't know >> you had a lunar holiday where people were taking off anyway. those have been extended because of the coronavirus e-commerce helps because people stay home, but lots of factories are closed across significant portions of the manufacturing portion of the economy the impact of the supply chain globally is very significant, and even in companies that -- we have an investment in a software company where not affected generally by supply chains, but there's a sensor part of their business and those sensors are manufactured in china, and that manufacturing facility is a thousand people and it's closed. at some point, we're going to have to find alternative supplies so i think that the broader issue to me is not necessarily around alibaba or e-commerce because at some point people will use those things more, but the supply change implications could be much, much broader. >> so digging in more, devin, as an investor in alibaba or other chinese tech names, if this coronavirus situation continues to evolve, maybe stretch on for longer than expected, would you take money off the table or do you stay invested? >> we're not a traditional public investor, more of a long-term investor, so we don't necessarily take a look at what's happening over a week or two weeks. i think broader issues were happening in tech as it relates to china beyond the coronavirus as related to u.s. investment. the regulatory dynamic between the u.s. and china has gotten more complicated, save coronavirus. i think there are a lot of things investors are looking at right now that go beyond coronavir coronavirus. there are broader regulatory issues as it relates to the u.s. perspective on the sharing of technology between the u.s. and china. >> does that make you hesitant to make more investments right now? >> absolutely. it's a much more challenging time to be a u.s. investor investing in chinese businesses, again, independent of coronavirus. there are so many knock-on effects, travel and other things, united airlines announced they ear not flying into china until the end now and we're in february. if you think about the long -- if you look at airlines, the most profitable routes tend to be the asia long-haul routes they're not making money new york to chicago. they're making new york to shanghai those knock-on effects, travel, what's the impact on airbnb and other businesses that have significant businesses in asia, all of which -- you know, i don't think we really know i would step back and say if you look at the mortality rates today for coronavirus, they tear same as the flu. and we've had a run on masks, but we have not had a run on the flu vaccine. so i would still tell people today before you run to cvs and look for more mask masks, you mt want to get the flu vaccine. >> good advice joseph, to close us out, is now a time when investors should be thinking about the longer-term potential in asia and taking advantage of any weakness from people having a short-term reaction to coronavirus? or are there more issues likely to be triggered that would cause investors pain, you think, even in the medium term >> from our perspective from what we're seeing and we'll be doing spot surveys with our merchants that are tracking or merchants on alibaba to get a better seasonse of sentiment for the short term but long term you're seeing a consumpti consumption-based economy continuing to grow in china, the likes of alibaba continuing to expand over the last couple years their growth rate has been exceptional. we continue to see people moving online to get the goods and services they need and the entertainment they're looking for. we see that as a positive going forward in 2020. so we're obviously optimistic about the growth rate of china-focused internet companies. obviously, there are some speed bumps right now, and there are some challenging things that are happening in the marketplace there, but if you look beyond that, we do see continued strength and continued growth rate in key sectors right now, certainly the internet sector within china >> important to take the long view thank you, joseph berger from pacific and devin parrot from insight partners thank you. coming up, with market caps and tech stretching to levels we've never seen before, who better to talk to than the dean of valuations? 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>> i think it's run up too much. that's why i sold. i sold way too soon. i sold at 640, but i think the stock at its current price, the% story is almost -- people are pricing in the expect take s -- expectations that the story is going to come true that would be my concern pay the current price. >> oswald, take the price action today. s.e.c. subpoena, capex expenses higher, recall 15,000 models, a $2 billion secondary, up 10% from the premarket lows. that breaks all the roules, doesn't it >> absolutely. i describe tesla as my corporate teenager lots of potential, but what can i do love to screw it all up that won't change today or next week they have potential. there are times when you think what the heck are they doing but when you have a storied stock and the mood is right, it doesn't matter what the fundamentals are people will push up the price. that's scary if you're an investor if you're a trader, this is your bread and butter you make money on trading. this is a traded stock, not invested stock >> you say it's a teenager, oswald is it lebron james when he was a teenager the bets on him were pretty good and turned out to be right you say they need volume numbers like volkswagen, margins like apple to justify this level. what else do they have to be able to do love to justify higher levels than this in the future >> they can't just be a car company. they have to figure out a way they become part software, part car. i can't quite tell that story, but there are people out there who believe that the pathway for tesla going forward is you're not just buyinga car you're buying software, technology, and that is the only way you can get to those margins. again, there are people out there who believe strongly enough in that story they're willing to invest at this price. i just -- i just think that's a bridge too far for me to buy at this price >> i want to shift gears here, get the thoughts on the trillion-dollar maga club -- the microsoft, apple, alphabet, google, amazon -- your thoughts on the market valuations of those names. what do you like what are you scratching your head about in terms of that guping right now >> i own two of those stocks in a sense i've given away where i stand. i own face beake and apple i'm not going to claim they're cheap. nothing is cheap but i like them because they're cash machines. they're cash machines with huge platforms where, if they can figure out what they can do with these platforms, and i think they will, i think you get a bonus. i'm concerned -- with amazon, my concern is not that they can't conquer the world. i think this is most disruptive company known to mankind i think that regulators and the lawmakers are going to find ways to try to stop it. with amazon, my concern is not that a competitor would stop it but there will be developments from up above that will make life more difficult for them >> you said facebook and apple did you mean microsoft and apple? >> i'm sorry microsoft and apple. microsoft and apple. both those companies are cash machines because they're cash basis. i do own facebook as well, and that's a different kind of bet that i'm making that once all this talk about privacy plays out, you're still going to have facebook and still have people posting private details on facebook there's a hypocrisy there that i can't get over i think ultimately these stocks look expensive, but given how everything else is priced, i don't see them as hitting levels that cannot be sustained >> so you mentioned microsoft and apple. there's 10% of the s&p right there. and then you have the other two, two-thirds of the s&p's gain for the year in four names do you see any reason why that trend should revert? >> for the last decade 23% of all of the gain in the 500 came from these five stocks. and i'm not even counting microsoft in the mix it's the fahnestocks basically accounted for 23%. for a decade we've lived off these stocks the question is they step back from being the value creators, what steps into the mix? that i think should be the scariest feature going forward is, hey, we've become incredibly dependent on these stocks pulling the market out, and if theystop doing it, then i don' see how the market finds the oxygen to keep going up the way it has >> professor, thanks for joining us today >> thank you recent direct to consumer debuts are struggling and so are the names in that space thinking about going public kate rooney is watching that from san francisco hey, kate. >> hey, carl direct to consumer brands were once the hottest thing in san francisco. but investor appetite is changing names like away were cutting out the middleman and shipping products right to your door. they recognized a record $4.3 billion in 2018. the problem is in a post-uber world, there's more focus on profits. many of these businesses are nowhere near profitable. goldman sachs' david solomon calling the companies out yesterday. >> i think some of the momentum that was driving kind of an ethos of growth at any cost has definitely subsided so people are clearly looking to understand the path to profitability or clear profitability in these businesses i also think direct to consumer omni channel businesses have a much tougher slog, and that's a very competitive space >> one problem is how much they pay to acquire customers even without physical locations, they're beholden to google or facebook for ads, some going back to brick-and-mortar casper went from a billion-dollar company to a $300 million public company the deal with shick razors fall eight part after the ftc stepped in investors tell me one of these issues is valuing companies like tech companies, those who are valued closely to a retail company have a better chance of surviving in an ipo. those who raise less money and rely on their own discipline and profits are being seen as winners and some with subscription revenue that tends to be a built more predictable over time. guys >> all right, kate rooney, thank you. a reminder as we head to break, if you want more cowbell, we can't help you, but if you want more "squawk alley," we have a solution watch us live or anytime on the i didn't catch that. i said ask how soon they can be here right now? what's now? he says they're surveying our property now they're probably at the wrong house i don't see any hovering his name is hovering? look up? by automating claims with machine learning and analytics, cognizant is helping insurance companies advance how they serve even hard to reach customers. cool ♪ when yowhat do you see?itical issues facing our world, we see breakthrough medicines getting to patients in record time. we see harnessing natural gas unleashing the promise of clean energy. we see engineers simulating the future to improve today. at emerson, when issues become inspiration, focusing core strengths to create a better world isn't just a result, it's a responsibility. emerson. consider it solved. hello, i saw you move in, and i wanted to welcome you to the neighborhood with some homemade biscuits! >>oh, that's so nice! and a little tip, geico could help you save on homeowners insurance. >>hmm! >>cookies! uhh, biscuits. >>mmmm, is there a little nutmeg in there? oh it's my mum's secret recipe. >>you can tell me. it's a secret. >>is it cinnamon? it's my mum's secret recipe. call geico and see how easy saving on homeowners and condo insurance can be. i'll come back for the plate. let's get an update on fed nominee judy shelton's confirmation hearing ylan mui has more >> at least two republican senators say they are still on the fence over whether to support her nomination one of them is republican senator pat toomey of pennsylvania, who was worried that her views on currency wars could be dangerous >> i remain concerned that she is an advocate for using monetary policy to devalue the dollar in what could easily evolve into a downward spiral. so i'm concerned >> the other one is senator richard shelby of alabama, who said that her views on issues like the gold standard make her an outlier >> you said you were troubled by some of her writings do you remain troubled >> concerned >> now, if either of these two senators vote against her, that would sink her nomination in committee. so she does have the support of the chairman, mike crapo, who said she is highly qualified to serve, but as she was leaving this hearing, guy, she did not answer any of our questions about how she felt it went back to you. >> thanks for bringing us the latest barclays ceo jeff staley under pressure this morning. seema mody has more. >> it's a story that's captivated the attention of london uk regulators are investigating barclay ceo's relationship with jeffrey epstein, the convicted sex offender barclays is the next largest group in the eu. she said their relationship was professional prior to joining the uk bank, staley spent over 30 years at jpmorgan they say he retains full confidence of the board. the uk bank, meantime, trading down by around 2%, certainly a lot of questions regarding this investigation. but it is worth noting, if we take a step back and look at financials in general, european banks being left out of this record rally we've been seeing in european stocks so far this year back to you. >> seema, thank you. let's gate news update sue herera has that behind seema. sue? >> indeed i do, right across the room from her. here's what's happening at this hour the cdc has confirmed the 15th case of coronavirus in the united states. the patient is among a group of people under a federal quarantine order in texas. the cdc warns there will likely be additional cases in the coming days and weeks. closing arguments set for today in harvey weinstein's rape trial. yesterday the defense rested and as expected weinstein did not tefr he denies the charges and says any contact was consensual hope hicks is reportedly returning to the white house she had been one of president trump's most trusted and longest serving aides before levering in 2018 she's expected to return as a senior adviser reporting to jared kushner. and check out these kicks. kentucky fried chicken has teamed up with crux to create what they are calling a bucket clog my, my, my they feature a realistic kfc pattern with a nod to the iconic red-stripped bucket and there are two removable chicken-scented charms as you can see, they look like drumsti drumsticks i am not sure about that at all. but we seal. do you want chicken-scented -- >> chicken scented >> i'm just surprised it's not a sandwich somehow, but sure >> i'm sure that's coming. >> i like you can take them off, too, and hold them >> i would be doing that very quickly. back to you, morgan. >> sue, thank you for that news update when we come back, aurora cannabis posting it's been a rough six months and year for the stock, which is down 80% the executive chairman and tem o lloi ia n moment imagine traveling hassle-free with your golf clubs. now you can, with shipsticks.com! no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination. with just a few clicks or a phone call, we'll pick up and deliver your clubs on-time, guaranteed, for as low as $39.99. shipsticks.com saves you time and money. make it simple. make it ship sticks. othroughout the country for the past twelve years, shipsticks.com saves you time and money. mr. michael bloomberg is here. vo: leadership in action. mayor bloomberg and president obama worked together in the fight for gun safety laws, to improve education, and to develop innovative ways to help teens gain the skills needed to find good jobs. obama: at a time when washington is divided in old ideological battles he shows us what can be achieved when we bring people together to seek pragmatic solutions. bloomberg: i'm mike bloomberg and i approve this message. welcome back to "squawk alley. this morning's market drop coming way back, the nasdaq now in positive territory in today's trading session. ubs director of floor operations art cashinjoins us what do you make of the reversal >> i think the reaction was somewhat muted for simple reasons. the big jump in virus victims, if you would, came because of a change in methodology. the world health organization finally has some people on the ground, and the belief here on the floor is that they prompted the chinese to go back and review the figures so the number of people jumped by 15,000 up to 60,000 if that had happened as the result of a new outbreak, if a new province had come up, you'd be down well over a thousand points but the fact that it's simply methodology, the primary result of that is that the chinese numbers, which were somewhat suspect to begin with, are now going to be suspect for the next couple of weeks. now, what we'll look to in that case is if we start to get numbers out of the world health organization they will have more credibility and we'll be watching. so we've had a muted reaction and a comeback mainly because it's all methodology and not a new virulent strain of the virus breaking out >>e of -- i know it's something you've written about, for example, in your morning notes, but the fact that at least until today the reverse we saw in the market, we saw a 3.5% pullback then rallied back to record highs. it's been some of those coronavirus-sensitive names that have joined in what do you make of that >> well, i mean, yesterday you would have thought the virus disappeared completely >> which is why i'm asking, yeah >> the energy stocks went up, the airline stocks went up, the s casino stocks went up, like there was no new problem but because it's methodology, we didn't revert into a very heavy sell-off now we'll have to watch from minute by minute as i say, we'll be looking for numbers from the w.h.o. and see if that begins to turn >> there are i believe two continue finished cases of coronavirus in spain, and yet the biggest telecom conference of the year, mobile world congress, that was set to be in barcelona in just a few days, was just canceled. does that signal anything that investors should be watching and follow-on effects? spain is far from china, but that's a significant economic impact >> no. i think the great deal of caution and fear -- because this is a highly contagious virus it's not quite as deadly as sars or whatever, but it's very, very contagious what the viewers should watch along with your point of cancellation and major events is we recently had some shipping rates and things of that type, they're going down >> yeah. >> that tells me that what you're seeing is a continued contraction in global trade, and that's showing up. so on the one hand, you know, it's not got people hiding in the basement quite yet, but it is beginning to have an effect after what we heard from powell and from christine lagarde yesterday, that the central banks of the world don't have too much ammunition to fight a contraction, i think it will be important for the viewers to watch carefully. the more of this stuff that comes out that hints maybe we'll get a contraction that could seep into the united states, that could be a problem. >> the freight rates are something to watch what it could mean for inventories at least in the near to medium term art cashin, thanks for joining us today >> my pleasure massive layoff, a restructuring of the c suite and a big loss of the quarter not enough to keep aurora cannabis down joining us is the executive chairman, interim ceo, michael singer thanks for time today. good morning >> thank you for having me >> we know about all the changes and not all of the trouble in the industry is obviously within your control but when you see production down 26, sales volume down 24, can it get worse from here? >> no. in fact, we announced our q2 results today but it was exactly in line with the preguidance we provided last week as a big update to our business and the most material development. we've taken action to reset our current expenditure -- our expenditure limit to, you know, to the current market conditions all of this with the objective of driving this company to near-term profitability and delivering a cash flow positive business for our investors it's the right thing to do for our investors and we're laser focused on making sure we deliver that in short order. >> how much could execution really do, given sort of the macro dynamics, at least in canada, regarding cannabis >> well, this was about controlling or making adjustments to things that we can control. we can control our expenditures. right now they're still in potentially limited growth in terms of revenue if we can control our expenditures, we will deliver profitable business for our investors. that's an area we're keenly focused on today >> michael, the cash flow pace of this, when would you expect to be cash flow positive certainly quite a number of investors and analysts have been concerned about the burn >> yes, obviously we indicated our desire to turn this company profitable as quickly as possible we will certainly go into fiscal 2021, a period starting july 1st this summer, and we will deliver a cash flow positive business in that fiscal year to our shareholders and ensure we become a stronger balance sheet and a company that is certainly able to support itself with its own operations >> michael, a lot of people don't understand how you cannot make lots of money selling pot so explain if you will the impact of the black market in today's economy that you're playing in >> so there is still a big illicit market in canada and that's a massive opportunity the illicit market numbers are somewhere in the $5 billion range. the cannabis is about $1.5 billion. you can see the potential growth there. but this was something important for us the pivot we made last week was important to ensure we adjust and manage the things that are in our control like our spending so if we do that, we see -- you know, in a situation where we'll see growth in this sector, we'll be best positioned to show significant profits and the ability to generate free cash flow on our balance sheet. >> arthur, we've been doing some coverage of, for instance, the way illinois has been framing this industry. i wonder if there are case studies in illinois at least that are getting attention in other part where is this is legal. >> maybe you know, we're still very excited about the canadian market we think there's tremendous room for growth our view of the future in this industry long-term vision hasn't changed. just the path to getting there is very different. our announcement last week is to allow us to make adjustments to the business for the things we can control to ensure we deliver a profitable business. that is most important for our investors and what they're looking for us to do >> stock's up 2.5% today michael, thank you very much >> thank you >> michael singer. >> we are getting some news out of the administration on coronavirus. eamon javers has those details >> that's right. i'm picking up on concern inside the white house about the data that's coming out of the chinese government in terms of the coronavirus. they're skeptical over at the white house about what the chinese are saying speaking with a senior administration official just over the past couple minutes, they said the united states does not have, quote, high confidence in the information coming out of china at this point. the official says china continues to rebuff american offers of assistance so some frustration there from the administration folks at the white house not having high confidence in what they or being told by the chinese. we're trying to find out more information in terms of how far off the u.s. estimates the chinese numbers are. no details on that just yet. i'll bring them to you if we get them. >> eamon, thanks that methodology change especially, we want to see where this balances out. after the break, senator josh hawley on the ftc's probe into hawley on the ftc's probe into past big tech mergers. our mission was to break down silos and bring teams together. nearly 9,000 of the world's most innovative companies rely on our platform daily to run their business and delight customers. we see a massive opportunity in the years to come, and as we celebrate today's milestone, we are even more excited about the future. congratulations datadog. every time it takes care of something for us, we celebrate. how often does that... got it. servicenow - the smarter way to workflow. 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(vo) save over 40 hours a month with intuit quickbooks. you leave it to me. i'll get your taxes in an ok place. what? just as soon as my audit is over, this gets my undivided attention. you take a lot of trips to the islands, phil? pretty great, right? oh phil's legally dead. fell off a boat. going by denis now. celery. long story. what do we got here. oh. not going to want to see this. i don't think this is going to work. at&t has america's best network, now with our best plans, at our best prices, starting at $35 a month per line for 4 lines. new from at&t. the is big government the solution to overhauling tech joseph hawley tweeted this week imagine if the ftc and doj were merging their efforts and pursuing joint enforcement against tech that's what my new ftc reform would achieve. joining us is senator josh hawley of missouri good morning >> good morning. >> given the doj's move this week to put its thumb on the scale of the roger stone sentencingt sure we want the doj running the ftc, especially with just a single director isn't that an issue? >>e tween big government and big techs agencies like the ftc are susceptible to capture by the identity theys ear supposed to be overseeing, and big tech a great example. there's a revolving door between the ftc, its commissioners, senior officials and big tech. they go work for big tech as soon as they're done, make a huge amount of money it's time to make the ftc accountable. they'll still have their independence the independent director will be confirmed by congress for a term of years it's time to make the ftc accountable and time to get them enforcing the law. >> how do you avoid the perception or reality of political influence on the ftc when you've got it from some quarters concerned with the doj's recent movers here >> you give them an independent director on the model of the fbi and other law enforcement agency where is they have a director that's for a period of years, five is what i proposed, has to be independently confirmed by congress so that person is accountable to congress, but on the whole, political oversight and political accountability is a good thing the problem with the ftc is there is no accountability that's one of the reasons they haven't done anything in years when it comes to big tech. they haven't done anything to take on any of the big conglomerates because in many ways they are not politically accountable. >> maybe you missed the fine to facebook or don't think it's large enough >> that's a joke, a slap on the wrist for facebook, a rounding error for them they are forging ahead with their same business practices. it's time for the ftc to get serious and get rid of the turf wars between the department of justice and the ftc on who's going to enforce what. it's stupid. takes up way too much time it's time to get focused on enforcement we heard a number of senators on the other side of the aisle make similar proposals as well. in general, this proposal you've put forward around bringing the ftc under the doj and the details outlined in it, has there been support from other lawmakers? >> yeah. we've seen senator lee, who is the chairman of the antitrust committee here, speak favorably about this it's a bold proposal it was meant to be a bold proposal while some are out there advocating creating new independenting independent agencies, more bureaucracy, my view is we have a bureaucracy that is not being responsive let's get our enforcement institutions doing real enforcement and give them the tools they need to protect consumers in the digital age, to protect our privacy and property rights, and make them accountable. >> senator, we've seen headlines about the ftc looking into past acquisitions by big tech -- apple, amazon, google, facebook, et cetera. what exactly does that hope to uncover? i mean, in retrospect, acquiring say instagram is a big deal. but at the time, it was a really tiny company is it fair to apply that lens to acquisitions >> well, the ftc has this look-back authority under 6b and i'm glad they're using it. it's been too long since they've take an tough look at these mergers. i have a challenge to sell off instagram and whatsapp if they're serious about competition and consumer privacy. there were lots of folk who is at the time of facebook's acquisition of instagram predicted this would result in greater market concentration, and, indeed, it has. listen, i'm glad the ftc greate concentration. it has i am glad the ftc is looking at it now but there ought to be more enforcement and scrutiny on the front end. it is cumbersome to break up the companies. it is hard to do we need more enforcement on the front end to protect consumers and promote competition. >> senator, i want to get your thoughts on another key topic of the day. that is this coronavirus situation. the fact we have seen a spike in cases and deaths in china in the last 24 hours. here on wall street there is a sense that it is not that the outbreak is credit shendoing, but that the methodology has changed. given the fact that you are privy to meetings, how concerned are you about the information that is or is not coming out of china right now? >> i am very concerned i don't think we can trust the data china has been releasing to the world. i am concerned beijing badly mismanaged this crisis for their own people and also for the world. i think we are seeing a credit shendo of cases and numbers that are coming closer to reality the truth is we don't know how many cases there are in china. we have to assume there are many more than are being reported and we need to prepare ourselves in the united states and take every available measure because the virus is serious, dangerous, and the situation is growing increasingly critical. >> senator hawley, we talked about the ftc proposal and a lot of other topics. we appreciate you joining us. >> thanks for having me. snap chat testing a redesign of its app julia boorstin joins with us the details. >> that's right. they have new navigation tools to make it easier for its users to discover some of the features it launched in the past year, such as maps which show where your friends are the navigation bar will make it easier to shift between maps, the discover page, chats with your friends and the new happening now feature gets news updates from its partners these tweaks i am told are less of a total redesign but more tweaks to navigation between tools that already exist it was almost two years ago that snap redesigned its app, losing millions of users and drawing widespread criticism, including from kylie jenner, which sent the stock plukting the stock walking back many of those changes and up 100% over the past 12 months that is why there is such scrutiny of anything that sounds like a reskin or threatens to disrupt user growth. snap did add 31 million users last year. we are likely to hear what changes snap does plan to implement when it has its partner day. that's coming up on april 2nd. morgan, back over to you >> yeah. julia, when we hear snap redesign we think google social network, kind of think, oh, this could be interesting good to see exactly a little bit of what they have in mind. >> julia, thank you. still to come, a new real estate record in beverly hills, ursycote of jeff bezos we will show you around after the break. the break. stay with us through the airport. with ship skis, you're just a few clicks away from having your skis, snowboard and luggage shipped from your doorstep to your destination. with unrivaled pricing, real time tracking ship skis delivers, hassle free. ship ahead and go catch those first tracks on fresh snow. ship skis. your skis. delivered. to take care of yourself. but nature's bounty has innovative ways to help you maintain balance and help keep you active and well-rested. because hey, tomorrow's coming up fast. nature's bounty. because you're better off healthy. nature's bounty. which of your devices are protected by daily security updates? 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alibaba and pepsi out with earnings nvidia and roku out after the bell the traders take their positions. the new call o