foundation capital and a vc vet. good morning to you both. >> good morning. >> timothy, i'll start with you. looking across your coverage universe right now, how are you factoring in china trade talks, and are there names that you like in light of the potential for a partial deal >> we generally favor communication service companies and cable companies that don't have a lot of exposure to china and pricing is holding up very well microsoft probably has the most exposure of anybody. we think we'll come to a resolution here but microsoft is walking through a mine field. >> paul, 24 more u.s. entities put on the black list including eight pretty high-profile tech unicorns in china, moving beyond the talks longer term, does this represent a further entrenchment of this tech cold war we're seeing between the two countries? if so, what then >> i think it represents a further entrenchment of a temporary war between the two countries that's been carried out by the current administration i don't know that this actually portends anything in terms of what's going to happen beyond that there are definitely imbalances between the two countries, but those have been exacerbated by policy, and that policy can change >> tim, microsoft sort of has the best kind of china exposure, right, that you can have in tech these days it's a software company, it's cloud led so it's harder to pirate than five, ten years ago. how do you sort of do the calculus on that type of company that is leaning in with the cloud but still has china exposure should it fluctuate much, no matter which way this thing goes >> it's probably at this point getting close to 10% and it's software based it solidifies their almost monopoly-like position globally with a lot of their products we think china is growing more rapidly than the rest of their businesses so it's an important country for them. >> how do they potentially get hurt and piracy isn't as much of a concern. they don't arguably need as much help from the chinese government to police it >> the chinese government could block their cloud capabilities if things got really, really bad between the two countries. we think that's highly unlikely, but it's a risk. >> meanwhile there's a lot of discussion about i.t. budgets. if ipos are pressured to be profitable quicker, maybe they spend less one of your colleagues on the cell side says ceos more see budgets going down relative to overall revenue the next three years than going up. does that seem fair? >> it's a risk for sure. for startups it's a lot more of a risk because they're burning so much capital. they need more funding all the time they continue to spend on cloud. fortunately, microsoft is a little less exposed to startups than an amazon web cloud is. microsoft has more entrenched companies in common enterprises. enterprises do seem to be digitizing their businesses a lot more and to the degree they can save money from migrating to the cloud -- >> no one is suggesting it's not going to be anything but strong, paul, but i wonder are you getting the sense out that that purses are going to get pinched even on the margin >> i think the question on the macro has been up in the air the last five years. i've had people say i'm getting out of the market and they got out three years ago, which is a disaster basically so i think that we're going to be subject to cycles in the economy just as we are any other time right now if you look at our companies and look across the valley, the good companies are performing well and the companies that aren't so great aren't performing as well. i would say at the moment it feels sort of close to normal. where it goes in the future based on i.t. spending and things like that we'll have to see. i guess i would break it maybe into two categories just for simplicity i'd say just broader infrastructure type spending is going to be a little bit more volatile or a little bit more at risk, but when you look at things like security spending, there's nearly an inelastic demand curve because there's urgency around fraud and cybersecurity. so that really -- we haven't seen any real change there from paul, i want to get your take on the health of the ipo market right now, especially since we've seen a number of companies delay plans to go public, including most recently postmates. do you think the pipeline is closed right now, at least temporarily? >> i think fred wilson and dan primack did a great job last week dan did the first one and fred followed on where they really looked at -- there's the haves and the have nots in terms of the ipo market there are high margin companies like zooms and data dogs 85%, 90% gross margin companies. and then there are the physical companies, the gig economy companies that anywhere from 10% to 40% gross margins those companies had done very, very well as we all know over the last five years in the private markets, and now it's time to come into the public markets and it looks as if the timing is not so great for them. all of a sudden the public markets are a lot more sensitive to these types of companies. >> paul, what do you think happens if, yes, the ipo window really does close or nearly so, and then at the same time the sort of flood of vc money that's been out there, certainly for late-stage companies but arguably for companies of all sizes for a while now, if that starts to dry up at the same time, do we end up with sort of a regional, i don't want to say recession but slowdown in silicon valley that perhaps reverberates outward >> that would be kind of the extreme view, i think. instead you're going see something different. you're going to see companies where you see those high gross margin and they're going to be fed. they're going to continue to attract capital and expand more rapidly. those other companies with lower gross margins, some of these companies will have to very rapidly move toward profitable to attract further capital they're not going to be able to go out in the market and say we're going to burn 20, 30, 40, 50 million a month while we continue to grow and expand. that phase of the market seems to have ended at the moment. >> lastly, tim, i want to get your thoughts given the pullback we've seen in the market, if you had to choose one name what would it be? >> microsoft is my top pick. >> gentlemen, thanks for joining us today tim and paul. >> thank you. despite today's positive trade news, the u.s. black list still going after some of china's most important unicorns. goldman sachs reviewing its involvement with some of those names. deirdre bosa joins us now with more >> hey, jon. some developments this morning you just mentioned goldman sachs but also m.i.t two american institutions working with chinese companies added that the black list say they are reviewing their relationships. goldman sachs is underwriting a $1 billion ipo in hong kong and is re-evaluating its involvement. m.i.t. gave us a statement not long ago saying they're reviewing all existing organizations added to that entity list and will modify any interactions as necessary. now, guys, these developments, they could represent major blows to two of china's most promising startups, unicorns that are leading china's ambitions in artificial intelligence. three of the most important names are sun p sensetime, megv and yitu investors include soft bank, fidelity, vaul calm. megvii runs face plus plus, the largest facial recognition system yitu is backed by sequoia and is number 20 on the disruptor list. yitu has worked with researchers at the university of california san diego. now, guys, megvii's addition to the black list is particularly challenging because it would be the first a.i. company to go public this is a very important step in china's battle for tech supremacy, so by targeting some of these up and coming startups in that space, the u.s. could be targeting those plans. >> thank you very much. when we come back, chris wylie is out with a new book that suggests what happened in 2016 mhtig just have been a trial run. don't go away. facebook in hot water again, approving a false biden attack ad and refusing to take it down, citing facebook's fundamental belief in free expression. social media platforms face increasing political and regulatory execute kneescrutiny ahead of the 2020 election cycle. a new account of the cambridge analytica scandal expose how they were used to manipulate results. chris wylie is here with us to talk about his new book which you can see on your screen right there. chris, welcome. >> cheers, thanks for having me. >> so what don't we know what's in this book? >> i think one of the reasons i wrote the book is after spending a year going and testifying at congress, speaking with every three-lettered agency that you can think of that were investigating everything from russian collusion to facebook's operations, the thing that i realized was there was a lot people didn't quite understand when you're a journalist, you have limited space to write about it so i really tried to explain how the origins of this company are in military contracting. when i first started, i was looking at how to use data to identify people who would be vulnerable to extremist messaging originally for the defense of countries like the united states or britain but after we got acquired, i saw the work that i was building be completely inverted and instead we were targeting the same kinds of people who were vulnerable to exploitation, vulnerable to paranoid ideation and radicalizing people in the united states for the alt-right. one of the things people will take away from the book is even if the company has dissolved, the capabilities of the company haven't. my real concern is what happens if china becomes the next cambridge analytica? what happens if north korea becomes thenext cambridge analytica? >> has the proprietary technology really become state owned or are there more private companies you're worried about >> more fundamentally something i talk about in the book is how social media companies like facebook operate you know, these are architectures that are completely unregulated. >> for now. >> for now but, you know, when you listen to how facebook, for example, talks about itself, you know, it talks about terms and conditions and you're opting into a service. but when you look at the types of people who work at facebook, they're engineers and architects they're building an architecture when you think about would we allow architects, physical architects to get away with building buildings without fire exits or without thinking about the safety using those buildings and just point to a set of terms and conditions at the door and say, well, if there's no fire exits, people agree to it. >> how do you regulate that? because in a sense isn't what you're talking about the fact that you're finding vulnerable people and influencing them to do something they wouldn't otherwise. some might say that's advertising, right i agree that it's being weaponized in the digital economy at a level it hasn't before, but how do you target just that activity in this social media age to be effective? >> one of the things that i talk about in the book is how -- the way facebook operates makes it conducive for disinformation and manipulation when i talk about regulation, you know, we are currently relegating the security of our democracy to a private company, which is incentivized to not talk about what's happening on its platform i think we need to take a step back and look at how do these systems actually operate and more broadly, when we require, for example, drug companies or other forms of technical engineering to prove consumer safety before they release a product, why are we not doing this with facebook and social media why are we allowing social media to conduct a grand social experiment without any ability for us to know is this going to be safe or how is this going to affect our elections in the future >> this is a key point i wonder what you think of the doj coming out last week and saying to facebook we know you have encryption plans for what's happened, some of your other products that you're rolling out, but please slow down on rolling them out until we can figure out some sort of security mechanism or back door in case we need to get information on some people. >> i think rather than having a piecemeal debate about specific things, in this case about encryption or security, i think more broadly we need to take a step back and say do we need a set of principles enshrined in law about how, whether it's in america or more broadly in the western world, how we want to treat the internet and how we want to -- what rights should you have as a user of the internet rather than piecemealing it, which is currently what's happening. >> you talked about the roots in military contracting, and i think that's a key point as well we talk a lot on this show about the idea of weaponization of information and of data. does that really represent where modern warfare is going? if it is, is the u.s. not paying close enough attention to it >> yeah. one of the things i talk about in the book is the u.s. military has such a big budget that it tends to focus on -- it's run by generals who are boys with toys. they like things that blow up, right? when you look at modern security threats, at the time when i was working at cambridge analytica, isis was just emerging when you look at radicalization around the world, an organization like isis recruits online, organizes online, dissem nats its ideology online, as does russia and other countries. when we're looking at national security, that's not just things that explode what happened in 2016 was an attack i talk about in the book, i talk about cambridge analytica's role in that. you know, just because things didn't blow up doesn't mean that there aren't serious harms that were done to the democratic institutions of the united states and more broadly how society functions moving forward. >> two things. facebook is throwing a ton of money at the problem, so much that it's become an issue for the stock over time. the other is that we got through the midterms -- do you think we got through the midterms safely? and why is that not a good report card heading into the general? >> we are blindly trusting a company when they're saying we're putting in lots of resources. i say what is that >> they do filings every quarter. >> yeah, but, but more fundamentally, we do not allow private companies, for example, to manage border security, right? there's an agency that does that we do not have -- we do not allow private companies to run issues of either national security or more fundamentally like what's happening in our political and civic discourse. >> so you're not encouraged by fcc, state a.g., congress, all these set of eye balls. >> i'm encouraged there's more scrutiny, but having been a lead witness in many investigations of this company, i can say that these are agencies that are not -- it is not a fair fight. they are not -- they are not staffed well enough to handle emerging problems that are happening online and they aren't experts. the idea -- the idea that it's the ftc and the s.e.c. that is the only -- are the only agencies that are effectively trying to rein in these companies to protect our democracy i think is kind of ridiculous we don't have a regulator that is able to do this. >> the government that seems to be the best at setting a framework and reining in behavior online is china so how does the united states walk that line between protecting the democracy and the safety of people and yet not becoming so heavy handed that the rule of law that exists in the united states gets violated? >> the thing that i'd say is the united states is walking in the same direction as china, we're just allowing private companies to monitor us left, right and center just because it's not the state doesn't mean there's not harmful impacts that can come if you have one or two very large companies monitoring and tracking everything you do. >> so does facebook need to be broken up? >> when we look at big things like electricity or water or public roads, we don't talk about breaking up a water utility or an electrical company. we regulate it and put consumer safety first and so whether or not we should break up facebook, i'm sort of either way on that but what i do think is that we do need regulations in the same way that certain industries that have become so important because of their vital importance to business and people's lives and the nature of their scale, we put in place rules that put consumers first. you can still make a profit, you can still make money, but you have to consider the rights and safety of people. >> that debate is going on right now with vaping, for example, but your point is broadly well taken. and you're banned from facebook. >> after i came out as a whistle-blower and started working with the authorities, i got banned on facebook and also instagram. and i still am because this is what happens when you have a company that does not have to follow due process. if you have someone who comes out and criticizes it, they can just eviscerate you from their platform you don't have any rights in that situation and i sort of question, you know, should we be trusting a company like this who bans whistle-blowers who are working with the authorities about wrongdoing happening on the platform and try to shut down what they're saying? >> sounds like there's a case for censorship happening potentially. >> potentially, yeah. >> chris, congratulations on the work. >> cheers, thank you. >> of course here it is once again on your screen we can't say the title for obvious reasons. but cambridge analytica and the plot to break america. chris, thanks. >> cheers, thank you. coming up later, twitter saying some user data may have been employed, quote, unintentionally for advertising purposes could regulators intentionally use this more closely to scrutinize the company as we go to break, meantime taking a look at the top names on the dow with the stocks rebounding after yesterday's sell-off, american express, vees visa and microsoft leading the gains. juul hit a $38 billion valuation just last year but pressure from health officials continues to cut that number down frank holland joins us with more. >> despite recent health concerns and regulatory headwinds, vaping is projected to be a $9 billion industry by the end of 2019. juul with 72% of the market and generating $4.6 billion over the past year will face its biggest potential risk coming up in may. juul must submit to the fda an application in order to remain on the market. as part of that application they have to provide scientific data to demonstrate that marketing the new tobacco product is appropriate for the protection of public health they'll also have to supply information on how the product will impact existing smokers and nonsmokers juul can continue to sell during that fda review but it's coming after the deaths of at least 25 people linked to vaping. according to the cdc, teen vaping grew from just over 20% last year to more than 27% this year these concerns are causing the legal and even the marketing landscape to shift dramatically. the trump administration planning to propose a ban on most e-flavored cigarettes five states have bans and several states are investigating juul's marketing practices juul's governance also this focus. kevin burns stemmed down last month. altria's former officer is the new ceo. besides icos, the competition is heat heating up british american tobacco's vuse vibe with a 31,000% sales spike. njoy with 1200% growth. >> a lot of money and more than that at stake there. meanwhile, european markets closing. seema mody joins us now with today's action seema. >> european stocks are higher but the focus really on turkey today. turkey's president erdogan confirming that his country's military operation in syria has begun just three days after president trump said troops are pulling out of the region. most analysts say this only increases geopolitical tensions in the region with the kurds as well as with russia so that's certainly a story european leaders are watching the french eu minister saying france, germany and britain are finalizing a statement that firmly condemns the turkish offensive. turkish currency and related etfs are trading down today. takeaway.com rising after reporting a 90% jump in third quarter orders that's lending support to just eat and delivery hero in europe. bank have england warning facebook that its digital coin will be met with a set of rules before it can launch in britain, just continuing its strong pushback ahead of the hearing coming up next week. guys, back to you. >> yeah, one to watch the globe over, i guess. seema mody, thank you. let's get over to sue herera for a news update. >> good morning, morgan. good morning, everyone here's what's happening at this hour more than 800,000 californians could soon be in the dark. the state's utility company, pg&e, is planning its largest proactive power outage in that state's history with the hope of preventing wildfires dry conditions and strong winds have been forecast for the next few days four school systems are suing e-cigarette maker juul saying the company is putting students inspe danger and forci them to spend money fighting the growing pop later ularity of thr product. voters in montgomery, alabama, have elected the first african-american mayor steven reed defeated david wood in yesterday's election. u.s. gymnastics claimed their fifth straight world title breaking a record set by romania back in the 1990s. the team was led by superstar simone biles who qualified to compete in all four individual events later this week you are up to date, back downtown to you guys, jon. >> it's almost not fair. >> she's amazing. >> flipping out. that's my mom joke for you, jon. >> that's good. when we return, whether it's deal or no deal, we will look into how to play the market volatility ahead of those china trade tas tolkmorrow that's when "squawk alley" returns. isions? 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(uplifting music) woi felt completely helpless.hed online. 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 1-877-866-8555. welcome back stocks surging on the heels of positive trade news off the highs of the morning kayla tausche is in d.c. with the latest. >> there have been a variety of reports where chinese officials appear to be signaling a few things one, that beijing is still willing to do a partial deal two, that it could multiply agricultural purchases and open more markets meanwhile the u.s. side has been telegraphing a few things in returning. larry kudlow in recent days in interviews has suggested that raising ownership caps on foreign companies in china might help move the ball from its side what's not clear is what president trump will accept, but people close to the talks say predicting what president trump will choose to do has always been impossible, but even more so now thduring the impeachment inquiry. deputies participating in trade talks are expected to brief ambassador lighthizer who in turn is expected to brief president trump later today. the devil would be in marketing any of the progress, although ambassador lighthizer than one in the past to say if there isn't any progress, he'll be honest about that and we'll see where that sets us up for tomorrow >> we know you'll bring us all of these headlines and developments as we get them, kayla, thank you for more on the markets and ongoing trade talks with china, let's bring in our own bob pisani and mike santoli. guys, good to see you. bob, we'll start with you. we are seeing a rally but off the highs of the session how would you characterize it? >> the good news is expectations are very low here. the bar is pretty low for trade. i think the bad news is the daylight to a real deal seems very, very narrow here it's not clear they're offering a real deal. they're offering a sort of truce. they're offering to buy agriculture products which they have done before in exchange for no more tariffs. if that's just a truce essentially, i don't know if the market will be satisfied for that truces basically can be broken at any time and the market doesn't like that. the narrative has been growth will be lower in 2020. rates will be lower. people are buying defensive stocks generally the guidance for the fourth quarter is looking like it's going to be lower than expected the question is how do you reverse that narrative >> that's exactly the point. yesterday just in terms of the field position game, from about 2:45 or 3:00 on, you lost about, you know, 250 points in the dow. so you just kind of bounced about half of that back this morning. i do think it's about trying to set aside the issue of trade as a incremental threat as opposed to getting some grand deal if you can do that, you can run the tariffs through theeconomi models what does it mean for growth worldwide, what does it mean for earnings estimates i think the market could reprice okay on that to me the good news is you can manage to hang into this range treasury yields still really low. sentiment i think has kind of gotten a little bit muted and subdued and that's probably a good thing, because, again, it reduces expectations. >> bob, what's the main thing, if there is one main thing, moving the market these days for a while it seemed to be the trade stuff and then there was sort of this allergy to growth that seemed to be going on with the ipo window closing i can't really tell. apple is up, which might suggest some of this optimism with china, but also the growth stocks, some of them are surging as well. >> look at semi conductors look at the bizarreness of the market leaders semi conductors and utilities. come on, really, seriously you explain that i have a hard time explaining it tle tou it's tough it doesn't make a lot of sense. >> a bar bell? >> that's right, it's a barbell. hey, you know, it's an internet of things, it's got to keep going up and everybody else is playing consumer staples we're going to protect ourselves here so it's a very tough market to figure out. what i looked at today is all the exotic ways china and the u.s. are trying to punish each other. the thumb screws are not working, let's try something else we started with demands for intellectual property reform that didn't go anywhere. okay, how about capital flow limitations then we'll try some new torture device how about black listing chinese companies? we come up with another device how about visa restrictions for chinese officials? you can come up with all this medieval torture list that gets things worse and worse and even add a few other things. >> there's more tools in the closet they have not used yet. >> you know what i'm talking about. the national retail federation expects imports to surge ahead of december, the tariffs, the december 15th tariffs. imports at major retail ports to hit highest level of the year again next month so we can talk about a suspension, but someone has a plan for the season. >> without a doubt it's going to pull forward a lot of activity most likely. that's going to work its way through all the reported numbers. at the same time, you're going to see weird effects on manufacturing from the gm slowdown and all the rest of it so i think we'll have a noisy macro period such as after the government shutdown, you've got a mulligan on a lot of economic data. >> do we get an eggnog hangover in january if all of it doesn't sell through. >> isn't it amazing how many were willing to buy between 2800 and 2900 it's really incredible you mentioned apple. i mention these medieval torture things that keep getting worse and worse. all of a sudden the chinese get really angry and start talking about individual companies manufacturing irregularitieirre health issues in restaurants in certain parts of china this could get a lot worse very easily so i agree with you, jon, the market is looking on the sunny side on a lot of these issues and hoping there will be some resolution for this. >> we're halfway through the week and have a lot more to go before we get to the endi of it guys, thank you. turning to the nba and the continued china fallout, the league postponing a press event for the brooklyn nets and los angeles lakers in shanghai today, this amid reports that all of the nba's official chinese partners have suspended ties with the league you've got activision blizzard, after his support for the hong kong protests -- yesterday we spoke with andy miller about what the ban for a pro gamer would mean for him. >> we're all for freedom of speech, especially video games are very different animal than traditional sports in that it's pretty boundariless. with new leagues like the overwatch league, which we are in, there is a local component and then in other games it's more of an international everybody is a fan of their favorite teams and players so that's a real political issue. we definitely back freedom of speech. >> at the same time, we've got apple in a bit of i don't know how hot the water is, but it's at least uncomfortably lukewarm over this app that isn't available in mainland china but is available in hong kong and outside that would allow people to track police movements in hong kong. back to the activision blizzard thing, arguable that the e-sports gamer here, he's the colin kaepernick of hong kong right now. during this game, he took this political stance, got people riled up, got punished for it, and continues to say, no, actually i'm going to continue to take this stand this is really inflamed. >> i wonder if nike will come in and back him maybe be the first e-sports athlete that's sponsored by a company, right no, but i do think it highlights the fact that right now, especially in the last couple of days, it's sort of a tale of two different american brands here you have the nba yes, it took adam silver a couple of days to come out with a strongly worded response and statement, but saying we're not -- we're not going to regulate what our players and our members have to say. then you have activision blizzard coming out. to be fair, they do have a clause in section 1. -- 6.10 which states that this gamer basically violated the rules, which is why they're doing the suspension and pulling the prize money. >> but blizzard's soul discretion brings you into public disrepute -- >> which is it's two different american brands taking two very different tactics. >> if that's the standard, offending china, boy, right? >> yeah. gets back to this debate and this discussion we continue to have. >> the company is in a very tough space. luckily for roku, they did get upgraded to outperform today, price target130 they say the user base could double or triple by 2022 that stock is up 8% after what's been a rough couple of months. rick santelli, what are you watching >> you know, six out of ten central banks around the globe eased in the third quarter abt atd 'ltathat, anwel lk outh after the break here's what's coming up on "the halftime report." optimism with a trade deal pushing stocks higher. what does that mean for your portfolio? our invest committee has you covered. plus putting a hold on fedex. one firm is calling the stock dead money and that they have been shredded. their words. and apple shares rallying more than 40% this year with bull innish notes out on the st, is now the time to keep buying or add to apple? all this and much more coming up on "the halftime report" at the top of the hour. we'll see you soon morgan, back do you. we've got some breaking news on facebook. for that we'll go to ylan mui. >> mark zuckerberg is now scheduled to testify before the house financial services committee on october 23rd. now, the topic of this hearing will be on facebook's impact on the financial services and housing sectors. you'll remember that the chairwoman of the committee, maxine waters, had called for a moratorium on facebook's development of libra until there was more information given to the committee. obviously we've seen a lot of controversy around that cryptocurrency going forward i imagine that will be a key focus of this hearing. in addition, we also expect issues such as the use of misinformation from russian operatives to also be a part of the hearing as well. we know these hearings, even though they have certain topics, they do tend to be wide ranging. lawmakers have a lot of questions for facebook and so mark zuckerberg will be in front of them on october 23rd in order to testify. guys, back over to you >> and of course we will watch that ylan mui, thank you for bringing us the latest on that. let's get over to the cme and rick santelli, santelli exchange rick. >> thank you after jay powell spoke yesterday, he will speak again we've learned some things and i don't mean to be critical of jay powell in particular, i'm just more critical of the timeline of central banks in general and indeed, we are in full ease mode again 58% of central banks eased in the third quarter. this is big-time the most active easing going back to the great recession. the reason i think that this bothers me in particular so much, along with many of my sources and people i rub shoulders with on the trading floor, is, gee, did we sleep through the stimulus removal chapter of this book at least the u.s. can take credit, starting under janet yellen late in her term, to start snugging up, to try to remove some of the stimulus that was crisis era in nature and not only outlasted the crisis, it's now in many ways become engrained in traditional monetary policy. qe, this isn't qe. why did the chairman go to such lengths to disengage, to remove what he's doing now buying short-term t-bills to provide liquidity to the plumbing of the system why did he push so hard on it? because qe is a manipulation of the market that has now in many ways become part of how to control the new market you know, markets grew and really dumb regulations across the globe that overaddressed the crisis really impeded the growth of the plumbing to keep up with it and so those chapters are missing. in many economies, they continually just go to monetary policy the minute things slow. the reason 58.6% of central banks eased in the third quarter is because global growth is slowing. we could spend days talking about the reasons. but in the end, monetary policy wasn't designed to replace fiscal policy, and that is a big problem. jon, back to you >> rick, thank you and when we return, twitter says it inadvertently misused information users submitted for security purposes, used it to target advertising we will break down what that means for your data ivy pracwhen "squawk alley" returns i didn't know what was ha so i kept it in. he started believing things that weren't true. i knew something was wrong... but i didn't say a word. during the course of their disease around 50% of people with parkinson's may experience hallucinations or delusions. but now, doctors are prescribing nuplazid. the only fda approved medicine... proven to significantly reduce hallucinations and delusions related to parkinson's. don't take nuplazid if you are allergic to its ingredients. nuplazid can increase the risk of death in elderly people with dementia-related psychosis and is not for treating symptoms unrelated to parkinson's disease. nuplazid can cause changes in heart rhythm and should not be taken if you have certain abnormal heart rhythms or take other drugs that are known to cause changes in heart rhythm. tell your doctor about any changes in medicines you're taking. the most common side effects are swelling of the arms and legs and confusion. we spoke up and it made all the difference. ask your parkinson's specialist about nuplazid. data troubles for twitter. the company saying user data has been used unintentionally for advertising purposes twitter not saying how many people were impacted it says no personal data was shared externally. joining us now to discuss, cofounder and ceo of data wallet which helps consumers take control of their own data. good to have you >> thanks for having me. >> just to clarify on what data wallet does, is it something you offer to businesses then they offer it to consumers that allows the consumer to see what information has been collected and if it's been shared with anyone else. >> exactly basically a digital wall e et that hols your data. if twitter was to give you a data wallet, you'd see all the data you created on twitter, that they have collected about you through third party venders then the use cases and you can set permissions for your data can be used. download, delete so it puts you in full control >> with this twitter situation that we're just talking about today, it's not twitter sharing it with anybody externally, it's using the data users submitted would this this have shown up in data wall let? >> absolutely unless they intentionally tried to hide them because at the end of the day, what it does is it puts you in control of your data but it can't protect you from anything that may happen lowelly. so if twitter really tried to cover up the fact they were collecting the two factor awe thentification data in order to advertise to you, it wouldn't show up, but would be a scandal. >> data includes what? location what do we leave behind? zwl anything you post. >> tweets itself your ip address. your e-mail address. >> or on a phone, desktop. >> correct exactly. it's all encompassing, plus twit eer buys a lot of data so they may buy from axiom, about your financial situation, whether you've applied for credit in order to more accurately show advertising to you. >> what companies do you work with >> a lot of companies in mobile. they are pretty upset about the fact companies are doing things that are unethical we work with consulting companies. >> sit a tough sell? i haven't seen a bunch of companies i'm logging on with online saying hey, see you we use your data and then call us out on it. if we miss up. is it tough? >> definitely is a tough sell to companies that try to do things with your day that they would rather not have you know about so ultimately, companies, there are a lot of companies that in the past, have been good data custodians and haven't gotten any credit for that. so they have not gone out on a limb in order to monitor even though they could have because up until about two years ago, it was not a hot topic. and companies were making a lot of money selling the consumer's data, however the companies who have been the data custodians and said we don't want to do anything our consumers wouldn't give us consent to do or jumping on board with what we're doing and we're the ones reaping the benefits to be b honest, consumers will switch to companies that are putting them in charge of their data and 87% of customers say that the companies, the amount of business they do with the company depends on how much they trust them that is how they use the data. >> we haven't seen any sweeping federal regulation, at least not yet, around data collection and privacy. but we are starting to see it implemented on a state level how do the regulations go into place in california and nevada affect this conversation >> so the regulations in california and nevada are focused on the sale of data, which is still a good thing so you can now issue for companies not to sell your data, however, it doesn't cover usage so if for instance if you wanted to drek a company to stop using your data for internal marketing purposes, you wouldn't be able to do that however data privacy regulation, any data privacy regulation intended to put consume irs in control of their data is a good thing, however, we have to take into consideration that companies like facebook and amazon are really profiting from this they have to have their own data >> unfortunately, leave it there. thanks for being with us and shedding light on it >> thanks so much. >> mart's kewithin been in a tit range, but u in the green. up 168 back in three minutes. dow session high up 205. not too far away all 11 sectors in the green as we see more optimism on china trade. let's get to sully >> all right, carl morgan and jon, thank you very much i'm brian sullivan in for scott again today. if you see him, let him know we miss him trade whip sawing this market around and the talks don't even kick off until tomorrow. it is 12: noon and this is the halftime report. >> optimism about trade and the fed pumping more liquidity into the market are stocks primed for a major rebound. then fedex getting downgraded. it's our call of the day apple pushing closer to all time highs. the tech giant may be eyeing a

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