Amazon, the latest in the eu cross hairs, facing a probe over possible anticompetitive Business Practices. Plus, ralph lauren and le le strauss in the red, both downgraded to sell at Goldman Sachs. And a tariff fueled strategy shift. Apple reportedly set to begin trial production of air pods outside of china and into vietnam. Another case of big tech under International Scrutiny amazon facing a formal eu antitrust investigation into its dealings with third party merchants. European competition commissioner margaret says based on the commissions preliminary fact finding, amazon appears to use competitively Sensitive Information about marketplace sellers, products and transactions on the marketplace and response amazon issued a statement saying, quote, we will cooperate fully with the European Commission and continue working hard to support businesses of all size and help them grow. This is the last thing some of these companies i would point out that they just brought an agreement with germany that was very very acceptable to germany. I think the eu will do it. We have a segment run by afternoon people at the network. Called check please. I think thats applying to all of our Tech Companies. Check please they want the money. Right they they dont want them to talk, they want them to pay and thats whats going to happen and theyll pay and then well move on. This is not like naming names with alphabet. The documentary i did on amazon five years ago, i know that john oliver used it a lot in something recently and made fun of us for no reason, by the way. Now youll be back on with him, why did you do that but we highlighted the fact that it is obviously a platform for other sellers and it also is a First Party Seller and they gather data on everything and, of course, yes, they can go in business against you, conceivably if they realize there is a Market Opportunity and they can make your product or source the product as well. It is not, you know, you look at the massive amount of revenues from amazon, profitability of where it comes from, a lot of it being Amazon Web Services, not a huge part of their business, but it is important. It is always been an issue it continues to be an issue. It is not clear where anything is going to go in terms of how you investigate that, and it is not the first time we have heard it. The germans, if the germans reach an agreement, eu, look, im not saying it is a shakedown, okay . Im saying it is a shake rattle and roll shakedown little more inventive. Lets face it, we have known about this forever, all right . Yes. By the way, Amazon Web Services, i know there is an antitrust investigation in america too. But theyre talking about how they squelch small business. It is half and half here Amazon Web Services is good for small business. It powers when you go into business, with the startup, in terms of whether it is Amazon Web Services, whether it is welcome day, whether it is shopify, which basically can run everything if youre a retailer, it is incredible how little capital you need now to get started. I have looked at shopify and sustainable clothing, i can tel you right now during the break, i can develop the program that looks just as good as macys well get to why goldman thinks thats a liability for some for suppliers 2 billion for google fine 5 billion out of ftc, we think whatever number this may be on amazon if it turns into a fine, when does the market ca ir t remember when remember when cary grant got in trouble at north by northwest at the end . The anniversary of the picture. Seven parking tickets one of the great last lines, better than nobodys perfect, theyre parking tickets. Theyre not even moving violations in points here. Youre worried about consent decrease, right . Yes something that says, look, Amazon Web Services has to be split off, something that says the antitrust authorities, the ftc and doj undertaking investigations of all of the big four. Their job to investigate. Well see that they can come up. The democrat in charge of antitrust was not that great about the rhode island democrat, he was not so great last night no. But the point is that we cant these are theyre two cents, throw cents thats my two cents. I want to promote the afternoon. Check please. Seems to be determined to tax, just in general, tax, because youre sucking data out of the country if youre one of these companies and they want to get paid for it does it become a reoccurring 3 to 5 hit to earnings. Do we do it like that thats a good thing. There is it is a taxation youre in, not that it necessarily you can argue it is taxation without representation you could yeah. They say that in some parts of this country. You can go back and take a close lyric at tar look at the. It wasnt at all about that. His hair is on fire. About all the people actually importing tea illegally and it was they were the ones, like can we stick to the topic sorry. The promotion of davids stock over your stock. Thats what it is all about. Thats the last one i did he obviously is on the news. My fathers last one of the last things he ever watched, this violates the 13th amendment, you should tell david faber he uncovered slavery in america. I know, somehow they figured it out whatever show that was they did the washington post. A great american. One of the greatest. Jim and david mentioned the evolution of ecommerce, it is a tough start for ralph lauren, for levi strauss, for pvh, goldman downgrades from sell to neutral. Levis, they see an elevated valuation compared with peers. They say the ordering season for back to school is extraordinarily tight as they overordered in the past. Also i think that this first of all, this is not an early call, except for ralph lauren, these stocks have been pummeled ever since levi. This is a watch issue. It is a walmart, amazo costco, home depot it is about power. It is who has pricing and leverage Bryant Cornell can call any one of these companies and say, you know what, im paying ill pay half here is my offer nothing. Theyre paying the licensing thats a reference to the senator the godfather. Yes, i had to brush up on my godfather reference. That and shakespeare, you have to brush up on. That too. Kiss me kate. You bet it is i feel like you read this report, it is one more time, guide this with matthew boss piece, you cant own the retailers other than the burlingtons, the tjxs. By the way, david, continuing team about dollar tree and Dollar General is a huge winner. This tjx, you can find some real bargains. You go to that tjx, thats a 9 for 1 underwear. Not even buy one, get eight. High end brands that youve never been there do you know how to get to it where is it . It is up the block. Down the escalator. Hes been must be frightening for him. It is black mirror for david faber. Are you going to start . Kohls has early hints on seasonal hiring. Are you going to are those going to be disappointing or all in warehouse jobs . My travel trust owns kohls i dont like look, matthew boss, who used to like kohls a lot is talking about kohls just to be okay the main thing about kohls that you want to see is the amazon return factor. And how much it means, driving traffic. Driving traffic this note, boss note is chilling the companies that are making money, shopify, important to point out thats not matthews takeaway goldman takeaway if youre a discounter, youre making money if youre anything else, youre hurting. Thats okay. Also, you can launch an apparel brand fairly quickly these days, given all the tools we talked about that competes, where you dont need a lot of capital up front, it is all over online for the most part and youre taking shares from you know this ozzy fest, good promotion by you, there as a judge with alex rodriguez, anyone who comes in with anything that looks like clothing, im going to give them 100,000 a1 100 and tell them to go to shopify. Is this ozzy or aussie . Ozy ozy fest. I know oz is not oz, the mentalist, there were 50 stocks, disney he is scary. Congress should peter thiel should be after him. He is the one that really has got noon our heads dr. Oz . No. Oh, my god dr. Oz, mentalist. The mentalist. Youre frightening. Yes, i am sometimes even to myself. We are going to watch the impact of the retail, what is weird is we had retail sales for the year are gangbusters, doesnt seem to have a sell on the big retail names seems it is hard to square. If i were oz pearlman, i would say im taking the actual aggregate retail over these because theyre not the aggregate retail indicates what bank of america did today. And what jpmorgan did yesterday, the consumer is spending very aggressively, but within reason when it comes to the balance this is a remarkable time. Jay powell, at csx, how bad it was, and not looking at jpmorgan or bank of america, hope hes not looking at citi. Maybe hes looking at wells. Maybe do you think wells will never have a ceo just asking . No, i believe they will. Why because it seems hard to imagine they wont i think they will probably have one ill say the not too distant which happens first ill go cbs and viacom. I heard 28 for symantec give me a little credit here do you know davids stock dont wander into my area do you know the heat im getting on juul. People are saying why arent i promoting ive gotten a few of those. Do you want to know why im not joining the juul crowd to give people early on cancer growth path if i do like drinking. Thats why it is pretty fraught. You say my mom died of cancer, my fatherinlaw died of cancer i guess i got embrace this because of my family. A lot other movers to get to including as jim and david said, csx, ual, bank of america and netflix tonight after the bell along with ibm and ebay. Looking at the premarket here, been a tight range the past few days more squawk on the street from more squawk on the street from post nine in a minute. News this morning involving microsoft and at t to josh lipton in San Francisco. Good morning, josh. At t is signing up to be a bigger microsoft customer. The company just announcing a new multiyear collaboration. Source tells me the deal is worth more than 2 billion here are the details at T Communications will move workloads that the business itself runs on to microsofts azure. So, for example, that can include finance, accounting, and hr management. In addition, at T Communications will provide much of its workforce now with microsoft 365. Thats a bundle of cloud apps that includes office 365, windows 10 and security tools. And the two companies will Work Together to create new 5g enabled products for customers in the future. This partnership does speak it a broader trend. Companies dont just want to buy microsoft products they want to work with microsoft to figure out how to best use that technology. It is a customer need that the ceo tells me his company is well positioned to capitalize on. I think the next phase of the cloud and edge and ai era will be led by what i broadly call more production than just consumption. That means retailers creating new experiences. If you think about microsoft core business, thats where our strength lie, both the architecturally because we build for this cloud plus edge and from day one and thats where i think we shine today microsoft has now announced the Strategic Partnerships with a range of companies so from walmart to volkswagen to chevron, but microsoft has competition too. Companies decide who their cloud partners are going to be, just yesterday at t announced that in addition to microsoft it will work with ibm. It is a multicloud world where people look to different cloud vendors for different Cloud Services back to you. This is what i said the other day, when we had ginni on with it is not go to be limited to ibm for trying to sort of make sense of this and having a difficult time, is there a way to explain very quickly what yesterdays announcement was more about 5g. And the edge and cloud computing. This is azure and at t taking things, i guess it had inhouse and moving them to the azure cloud. Yes, but, look, ibm is cloud. Azure is big cloud you bring in red hat, red hat is ecumenical, they can work with anybody. Microsoft is the dominant player it comes to 5g, as josh mentioned, they have it, 5g is at t, ibm. Look, these are all important. What they hoe is there is a lot of business to go around and i know that Jim Whitehurst his philosophy is, listen, were to be neutral. Well send business to ibm, well send business to microsoft, send business to Amazon Web Services. New business created from the data that is going to be created as a result of 5g, i guess. 5g, if we did nothing but talk about i love to do the 5g show. I would. Just kind of a got to be able to demonstrate, yeah, yeah. Download a movie in four seconds, cant do that right now. No. 5g is so much more than that. It is the internet of things and thats why it is so important. And autonomous vehicles, thats a ways in the future. Were so concerned that china that huawei has the better 5g product. And also enables the surveillance state in a way were not at all you got the zeitgeist, zeitgeist is scary hearing anything really . Yeah. Give me a heads up there. Thank you well keep our eye on that. Again, big weak for deals whether it is ibm, at t, apple, doing podcasts, door dash. Door dash, they are so aggressive, that was yeah. Door dash, they appeared at one of our restaurants as a partner. Not sure but hey, nobody isperfect. Well see if that has further impact on uber in the weeks to come cramers mad dash. One more look at the premarket one more look at the premarket on this wednesday. As your life grows, so do your needs. And with bank of america and merrill, the benefits you get can grow, too. As a preferred rewards member, you can enjoy Priority Service and exclusive discounts. So your growing life can be more rewarding, too. What would you like the power to do . Time for a mad dash here on what we like to call our hump day. Got about eight minutes before we get started with trading here a little abbott labs i went to Arthur Murray classes, i found out how to dance to that. Abbott labs, winner, winner, abbott dinner. This is the Largest Company that has accelerated Revenue Growth in the vast universe that i follow, okay certainly top 20 raising four year guidance to 7 to 8 . There are 40 Million People with type 1 diabetes. They have a device that actually is the answer for diabetics. It is remarkable that you get this full year guidance raised people didnt they look small and thought i was thinking all that, there is a two cent shift for next quarter to the quarter after that, someone says it might be light on that. Thats ridiculous. This is going to 90. People should get on board because lets couple of things, device does what and just remind people monitor miles white is the dean of the medical device the dean of healthcare there isnt anyone that hes been longstanding he split it up with abbvie wanted to be device. Much more lightly regulated. Glucose monitor. Yes it works very well. Yes it is against dex com, the high end, it is affiliated with varly, not known part of the that peter thiel points out that i know of. We are going to have a david faber Unamerican Activities Committee and get right to the bottom of this. Yes there were a number of people that named names and those that didnt saw their careers ruined. Exactly right david, what you need to know about abbott labs is that were looking at a company like boston scientific, the devices are on fire, versus j j , it has becom a litigation company, less than a drug company in terms of headline risk. Headline risk talc or opioids. I think that theyre right, but i feel like im being drowned out. Abbott has no negative headlines. The deal you talked about endlessly, theyre starting to work diagnostics is doing great you bring up the leer deal, the word endless endless. I like to do endless reporting. It never ends. Right it is the abbott that never ends. Neither does this show. Will you stop im trying to make it go as fast h possible. Myair is youre watching cnbcs squawk on the street live from the Financial Capital of the world. The opening bell in about two minutes time busy wednesday as earnings roll on, jim. And david. Today it is three out of Ten Companies that have beat on revenue. You know, i think we have to focus on bank of america for a second here is a Company Making fortunes, all right. It is one of the five largest in terms of Profit Companies in the world. But, again, they missed the line, they missed Net Interest Margin you got to think bigger. This is a technology powerhouse, 37 Million People want digital and the digital efficiency, so much better. Machines make so much more money than people. So they can continue to slim down and grow. When is it going to get its due . I do not know. Should it get its this thing has been doing nothing for two, almost two years. Plus david has the head and shoulder pattern you dont like. Im looking at that right now. I dont like that at all. I like the head and shoulders out of procter, to 120 i think bank of america was a good quarter Goldman Sachs number one jpmorgan number with citi number three. Bank of america, number four wells 10, 11. How many banks are there in the country . Once they get a ceo, do they move up the ranks . You think theyre going to get a ceo. I dont think that could be the headless horseman. Four horse men and the apocalypse. They have an acting ceo. Lawyer. But, hey, lawyers have run banks before moynihan runs bac. Prince ran citi. The dancing has stopped at wells. The dancing stops reference to chuck prince, got to dance. Overall, have Bank Earnings<