Transcripts For CNBC Squawk Alley 20240714 : comparemela.com

Transcripts For CNBC Squawk Alley 20240714

Good monday morning. Welcome to squawk alley. I am carl quintanilla, morgan brennan, a brennan. The first story, more than two dozen attorneys general expected to announce antitrust investigation into alphabet. Ylan mui has more from washington reporter good morning, carl. We expect that formal announcement from the steps of the Supreme Court at 2 00 p. M. It is the largest coordinated effort to take on big tech we have seen so far attorney general of texas, ken paxton, a republican, is leading the charge this will be a bipartisan investigation. We have a statement from massachusetts ag maurahealey she said Online Advertising is everyone this will center on three big questions. Has google engaged in behavior that stifles competition, restricts access, harms customers. Were told the investigation will include demand for google to turn over documents related to the advertising business. Hoping to get more specifics on how states will frame their case at the announcement later today. Google issued a response help people, create choice, and thousands of jobs. It is one of the top spenders on r d, making investments that support innovation the company also acknowledges it faced a lot of scrutiny in the u. S. And overseas. Google says the Justice Department asked about past investigations, and expects state ags to do the same back to you. Thank you very much try to get clarity on this from one of the attorneys general out of florida, but have to wait for the announcement for more. Lets bring in kara swisher, recode editor at large cnbc contributor good to see you. Hi. Stock is up how much do they need to worry this is something thats been building, they have a slow burn like microsoft and others. The question is theyre being hit by the states attorney general, Justice Department is looking into this, european regulators, the u. S. Is just catching up to what everybody else has known which is we dont have competition in search hasnt been a new Search Engine since forever. Same thing with social media and the Online Advertising market is really a duopoly of google and facebook and theres damage being done to lots of startups. Seems to me that google and facebook tend to win when you talk about users, who likes to use the platforms. It gets more dangerous when you talk about the advertising market, the power they have, whether theyre advantaging their own products over competitive products, things like that. Right but this is not a new thing, yelp has been complaining for years. They were the lone one crying out, base camp is now complaining about them the fact of the matter is when is the last time blank. I wrote this recently, when was the last time there was a new Online Advertising major power, last time there was a Search Engine or social Media Network 2011 for that one. For snapchat under siege from Facebook Facebook recently announced as they begin to integrate instagram into facebook platform, a version that snapchat already has i think smaller players have a lot of reason to complain about it, and then the question does it hurt customeronsumers, even like it, theyre able to provide those prices which is free essentially because they have the monopoly it is a complex time for these companies and they need to be very careful because regulation is coming obviously. I realize well get more details on the state attorneys general and probe into google later today at this event. That being said, i mean, you already have federal regulators in the u. S. Taking a look at big tech the fact that you have the state attorneys jumping in with a separate investigation, how unusual is that . Not at all. That happens all the time. Theres always these things happening and they come in a confluence, and the interesting thing about states attorney general, it is bipartisan. It has been that same thing in washington the only thing everyone agrees to is big tech is powerful the reason for doing it is different on the federal level, with conservatives saying theyre being too liberal, liberals saying theyre letting too Many Russians in, but it is the same theme which is these companies are too big and powerful, too much control the question is whats the remedy thats the big question. Where is the remedy. It has to be coordinated among federal and state but they cant just do consent decrees, facebook violated it, paid a fine they have to have real laws on privacy and competition that will set the rules for the road with these companies, which i need to stress again, there arent rules for the companies ever, except ones that help it the question is where are the laws the camera will get a tight shot of the pin on your lapel which references alphabet. Dont be evil. Is that a signal that they have more liability than facebook on this i think they all do i dont know i think they have more dominance of that particular marketplace so theyre all going to say anyone can leave at any time, thats their statements, right, that it is free and this and that, but free aint free, lets be clear on that thats users, not advertisers. If youre an advertiser, you cant leave anytime, you have to deal with google or facebook, chances are both to reach the audience you want to deal with i think part of whats happening here thats interesting to me is that it is bipartisan. But seems like it has to breakdown at some point when it comes to remedies. These companies will try to play one party against the other, talking about loss of jobs in california, which republicans dont so much care about or something on the free market side this bipartisanship wont last forever. Loss of jobs thing, it is like look, amazon didnt make it here in new york, now theyre hiring a ton of people here. How many gimmes do you want to give them. At the same time, theyre innovative, but new Companies Need to come forward the argument theyre so great and we love them so much goes only so far. We need new companies to bring new things to be competitive competition is better with more competitors. Prices are, everything is better with more competitors. Good stuff. Thank you kara swisher. Coming up, we are one day away from what some say is apples most important day of the year the announcement of new iphones, clarity on streaming service and upgraded apple watch, arcade more well breakdown whats eecd moowxpte stay with us ts going on. Ive done all sorts of research, read earnings reports, looked at chart patterns. Ive even built my own historic trading model. And youre still not sure if you want to make the trade . Exactly. Sounds like a case of analysis paralysis. Is there a cure . Td ameritrades trade desk. They can help gut check your strategies and answer all your toughest questions. Sounds perfect. See, your stress level was here and i got you down to here, ive done my job. Call for a strategy gut check with td ameritrade. [spokesman] if youve tried colleg group cheering shed, snhu lets you transfer up to 90 credits toward you bachelors degree. 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We are about 26 hours away to apples highly anticipated Product Launch just that far away, amid headlines of a potential Chinese Labor law violation, a report out of the times that apple stacked its app store with its own apps at the top of search results. Joining us for more on apple, dan ives has an outperform rating on apple. Also with us, shawn harrison, Research Analyst who has a read on the stock good morning dan, it has been about what, almost 8 years since New York Times did a story on foxconn and apple and Labor Conditions in china that first raised all of this to the fore, having to do with safety, working conditions, underage workers apple changed a lot since then now theres a recent story about potential labor violations is this going to effect stock . I dont see it effecting stock but speaks to the broader issue with foxconn in china, up hill battle for apple with issues from years ago. Ultimately for them, they bet the farm on that facility, so this is obviously a bad pr situation, but in terms of stocks coming down to china and any sort of turbulence, i view this as background noise nonetheless, does speak to the importance of foxconn china. Apple is the poster child for u. S. , china trade battle. Apple says most of the child labor allegations are not accurate looking for more details there how do you expect iphone, apple stock, to act this cycle of the iphone on one hand, analysts i am talking to, a lot expect after launch, up tick of iphone might be weaker, theres a 5g phone people think is coming then at the same time a 5g phone people think is coming havent had a major iphone and Network Upgrade since iphone 5 that could be big. Which are investors going to react to i view tomorrow as essentially for lack of a better phrase nonevent. Expectations are low for the new iphones, it is an iterative upgrade with better camera which is great, battery functionality, a few small upgrades as you said 5g iphone is coming next year. Only those that want to be on the cutting edge of new iphone on the upgrade cycle or if you need a new phone is going to be the driver, versus waiting for what 5g represents in the iphone in 2020. Dan, do you agree, a nonevent tomorrow i disagree. Fundamentally it comes down to a third of the install base, 900 million with upgrade opportunity, 60 to 70 million chinese consumers. To call it a nonevent, this puts fuel in the tank in terms that upgrade, key catalyst especially in china missed out on the last upgrade cycle. Triple lens will be keyed as putting a fence around chinese consumers. I think for the stock it is important in terms of trying to show some growth going into fiscal 20. We talk about 5g as a notion. What features on the phone will motivate you to upgrade, given how expensive some are now if you look at where they a bit of a mistake on the last upgrade was on the lens. You have triple lens in the back camera is key. Thats what cook will talk about tomorrow and talk about ai functionality around video which is going to be key as well as shatter resistant technology built into the hand set michelle, what about the argument that yeah, maybe tomorrow doesnt matter for iphone, that doesnt matter for the stock. This cycle only matters for four or five months then people look to 5g you would be foolish to sell off apple based on this cycle when youve got a big Network Upgrade coming in a year, right . I think thats correct. It will matter short term as long as it is not a mess you had iphone cuts past two years that negatively effected the stock. If theyre better forecasting demand this year and thats generally in line, best sign they can hope for, thats more key for stock than short term versus whether it is a few Million Units higher or lower. Why the hold . The hold is a fundamental iphone to me isnt a cat last this year, you have a long period before the 5g launch. Until we know up tick grade on services coming in the fall, this iphone isnt a shortfall which has been the past two years, i dont see a reason to sell the stock at this point. Dan, meantime you have a head line out of New York Times how apple top rivals in the app store it controls. We talked about tech lash, regulatory scrutiny, some Big Tech Companies and whether theyve become too big, monopolistic, et cetera. How big a risk is increased scrutiny to apples app store . I view it in terms of antitrust spectrum we view amazon and apple more as least risk where facebook and google we put more risk in terms of that. What youre seeing is in terms of the app store, dont view it as a risk. Youll see focus on it, but fundamentally for investors, i view that more as background noise where you view facebook and google more front and center in terms of antitrust. Shawn, do you agree i agree apple eventually has to get paid for providing the platform for people to use the apps, shouldnt be as front and center as other services being investigated all right dan, shawn, thank you. Thank you a fifth person dying over the weekend of a mysterious lung disease linked to vaping, prompting the cdc to warn against e cigarettes as the agency investigates. Aditi roy has the latest from San Francisco. Reporter hi, morgan. Federal regulatory pressure on juul continues to mount. The fda released a warning letter sent to juul this morning. The letter alleging that juuls marketing practices represen that they present a lower risk of tobacco related disease or are less harmful than one or more other commercially marketed Tobacco Products juul has 15 days to respond to the letter meantime, the cdc warns people not to use e cigarettes as they continue investigation into whats causing that mysterious lung illness after vaping. They looked at 453 cases five deaths confirmed in california, illinois, minnesota, and oregon cdc investigators believe Chemical Exposure is likely associated with the illnesses. Many cases involve recent use of thc products, some reported using both thc and nicotine containing products, a Smaller Group used only Nicotine Products the cdc says no device, product or substance is linked to all the cases, and in response, leading e cigarette maker juul is monitoring closely. To be clear, our productsdo no include any thc, compound derived from cannabis or vitamin e compounds like those found in thc products some say it is in black market, copy cat products. The cdc is looking into that, adding people shouldnt be mixing products. Juul has until next may to submit fda application for premarket approval of its products back to you. Thank you coming up. Is the vision fund starting to show cracks . And former chief Strategy Officer imran khan joins us omfr verishop woman my reputation was trashed online. I felt completely helpless. My entire career and business were in jeopardy. I called reputation defender. Vo take control of your online reputation. Get your free reputation report card at reputationdefender. Com. Find out your online reputation today and let the experts help you repair it. Woman they were able to restore my good name. Vo visit reputationdefender. Com or call 18778668555. When didwhen i needed ton . Jumpstart sales. Build attendance for an event. Help people find their way. Fastsigns designed new directional signage. And got them back on track. Get started at fastsigns. Com. Welcome back deirdre bosa joins us with more. It is a major task for moasa son and two new reports indicate it may push out ipo at valuation of 20 billion, less than half the 47 billion last put money in could raise doubts about the play book which is invest in companies right for ipos throw hundreds or millions at the company, taking big stakes at big valuation, take said Company Public for a higher price. Finally, reprofit for vision fund one use it as evidence to raise more money for vision fund two, except thats not the way it is happening with two funds biggest, highest profile investment uber is trading well below ipo, and level where softbank got in, putting that investment underwater could lose more money on a wework ipo, or be required to put in more capital. The aggressive rate plans requires another Capital Raise stands to miss out on 10 million if it shelves the ipo. Thats up to 6 billion in debt thats contingent on the ipo theres another option could potentially raise more money from softbank to buy time. Masa son said he expects to keep backing wework in the future the question now is will he do so, even if it means showing cracks in the vision Fund Strategy lets get to sue herera for an update. Hello, everyone here is whats happening the coast guard made contact with four crew members trapped inside that overturned cargo vessel off the coast of georgia. It overturned sunday morning there were 24 crew members aboard the ship, 20 of whom were now rescued. Firefighters battling a wildfire burning in utah the metal creek fire broke out sunday Officials Say sparked by a Lightning Strike probably. It scorches 1200 acres. No homes or buildings are threatened by the fire. The party of Vladimir Putin suffered big losses in moscow elections as candidates endorsed by his opponent won almost half the seats. Sundays vote grew in prominence when authorities refused to register a dozen independent candidates, including well known kremlin critics. Pope francis arrives for the final stop of his african tour he was greeted by a large crowd that lined the streets outside the airport. You are up to date guys, back downtown to you carl sue, thank you very much. The meeting with Prime Minister Boris Johnson talking brexit hours before the leader once more asks parliament for permission to call a fresh election willem marx has more. Reporter he wants to suspend Parliament Later tonight, not before he calls for the second time in one week for a fresh general election he says thats the only way to break current deadlock yet found himself in dub

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