earnings do in fact disappoint now, the tech rally has been highly concentrated fueled by facebook, apple, amazon, microso microsoft, all up more than 30% this year. remember, microsoft alone contributed to 15% of the s&p's gains last quarter it's worth noting that growth-oriented stocks as a whole continue to outperform value-driven stocks. that can certainly change if the outlook for tech earnings deteriorates due to factors like tariffs, a stronger dollar and a china slowdown kelly, back to you. >> thank you seema mody stocks soared in the first half of this year with the dow, the nasdaq, the s&p all posting double-digit gains can that be sustained? especially if buybacks dropped a little bit and the threat of a wider trade war with europe. let's bring in the chief investment officer henry and wall wash. markets famously climbed the wall of worry. the longer the list the better they typically can do, but we are coming off a strong first half. >> the strongest first half in over 20 years following the strongest january in over 30 years. the question then becomes the longest economic expansion o

amazon posting a rare miss on eps. netflix trying to recover from its disappointment last week and microsoft regaining the crown as the world's biggest company. for more i'm joined by paul, the lead portfolio manager of the wireless fund. paul, what's the takeaway message for you here >> the way i look at this, kelly, is that as i thought it would be this quarterly earnings season has been decidedly mixed. now one of the things that we have to absorb when we take a look at companies like amazon is some companies are delivering and guiding to revenues better than expectations, which is great. but they miss on earnings per share, and i think it's mostly because of a self-inflicted wound, which is the realities of most of these internet companies. they are going to have to spend more to meet these regulations for privacy. >> in amazon - >> so fizz a company still growing its top line but missing eps for reason of a self-inflicted wound, i think that's okay. >> so in amazon's case it's investing in one-day shipping. i'm su

they're trying to turn their offices into an amazon warehouse in order to get the tech valuation. i don't buy it >> so all of this is happening as they get ready for what reportedly could be a september ipo. this is probably one of the companies with the most hide-profile criticisms of its business model even uber and lyft did not necessarily have the heat on them like wework their valuation has continued to go up, but what's interesting about this is something we hear with wework or we company is the amount of capital that the founders have allegedly taken off the table, in secondary sales, with every one of these rounds, the founder will take a few chips off the table. this happened when snap went public we're talking about an order of magnitude more that has already gone in the possibilities of the founders, which is over $500 million. that's a lot of money that they are effectively holding on to risk free, because they sold it on the ride up. >> do we know if we're looking at -- so you want the last they were valued's juan $47 billion are we expecting them to do much more than

sales are not actually amazon direct they are third-party retailers, in many cases using amazon's fulfillment. it's not just amazon's platform alone giving some argument that this isn't quite as cut and dry as the treasury secretary presented. take a look in shopify it has a $36 billion market cap. that has tripled in two years. and its business is really allowing businesses to compete without being on amazon necessarily, though as part of the latform, you can also operate on amazon. don't forget about etsy. they have an $8 billion market cap. that has quadrupled in two years. amazon was competing directly with etsy. and you know what, they are still doing just fine. one area that has popped out for amazon anti-trustwise is again that third party retailing platform there have been some complaints that amazon has a lot of data about what customer demand is for those third party goods. can then use that against its competition that might be an angle that the feds choose to pursue but we haven't even talked about cloud, kelly you know, amazon has not really tied the retail and cloud businesses c

but this is, amazon is going to deal with some of the same problems that established hundred-year-old retailers will deal with. >> as people learn more about it, will they not do business in pennsylvania how could they ever be responsible for every third party product sold on their platform this is a story to follow. >>> a major airline is making a strange request to passengers, to say don't fly check this out >> do you always have to meet face-to-face could you take the train instead? could you contribute by compensating your co2 emissions or packing light >> i mean, this is part of klm royal dutch airlines' fly responsibly campaign they're trying to cut down on carbon emissions flights only account for 3% of global co2 emissions >> only? >> it's like liquor companies saying drink responsibly >> i thought they were going to say, use smaller shampoo bottles, lose weight >> eat less, stop breathing. >> it's so european, isn't it? >> this is all marketing >> it's green-washing. >> if they were being serious about it, they would make the carbon offsetting compulsory they would say, we're

amazon hits the right note and american eagle jumps on the cbd bandwagon. that's all ahead in rapid fire advanced safety technology on a full line of vehicles. now, at the lexus golden opportunity sales event. lease the 2019 es 350 for $379 a month, for 36 months, and we'll make your first month's payment. experience amazing. - my degree from snhu has helped me tremendously. (gentle music) the flexible class schedules allow me to go to work full-time, run my catering business and be a mom and parent. when i reached this accomplishment, it was like, it's here, it's happening, it's now. souwe, atern new hampshire university, are the ones who succeed. we are the ones who break through. >>> welcome back let's catch you up on a few stories that should be on your radar today. it's rapid fire. here with their takes are leslie picker bill, you're supposed to be in that chair today >> that chair? >> youwant to switch >> no, i'm -- no, no, wait i'm hooked up to the chair can't do that. >> i was going to say. i know our director can handle it alan can handle anything

amazon's bonanza kicks off at 3:00 a.m. monday this year it's over two days it's expected to generate nearly $6 billion in sales for amazon interestingly enough, big names like walmart, target, and best buy now offering up their own deals. this is turning into the new black friday >> it is and the question is will people actually turn to the competitors or will they just go where they think they can get these deals in what's known for just having the lowest prices? i will say, though, stretching it out to 48 hours does give consumers more of an opportunity to do some price discovery by looking at other sites. so we'll see how that translates into sales >> i've been a long-time prime member i am overwhelmed and it's not even prime day yet i am overwhelmed in the lead-up to prime day i've got the coupon that says they're going to give me 10% off prime if i shop at whole foods i'm about ready to say no to cyber shopping all together because i'm so overwhelmed >> wow >> i mean, am i a leading indicator? maybe. >> on the cutting

top brass from apple, amazon, google, facebook, all grilled on the hill we examine the real risks facing the companies and their shareholders >> and solid demand and low interest rates home builders should be ecstatic, right? maybe not. we'll show you what's worrying them about the american housing market as "power lunch" begins right now.

amazon a little smaller of a business but it's expected to grow faster because it's not as mature >> julia, what jumped out to you about facebook last night which, again, put up -- just showed the business continues to execute despite all the headwinds it's facing >> facebook growing as revenue faster than expected what i thought was so interesting, kelly, was during the earnings call last night there was a moment where the stock turned around. it had been higher and reversed and went into the red. that's when the cfo warned that they expect revenue to have a pronounced deceleration in the fourth quarter and going into 2020 and he said that's because of uncertainties around ad targeting. i do think facebook is not entirely out of the woods yet, and they don't entirely know how some of these changes in terms of a regulatory standpoint and in terms of consumer behavior around privacy are going to impact their ad business >> which raises the larger question, is their efficacy driven by the very practices that regulators are trying to crack down on? >> it's going to be a huge impact on t

it is any second for amazon and alphabet. we'll bring you those numbers that may move the markets tomorrow as soon as they cross the tape here. good to be with you. i'm connell mcshane. lauren: i'm lauren simonetti in for melissa francis. this is "after the bell." the

my theory is these analysts are the same gang that covers the stocks, facebook, amazon, netflix. apple is the slowest grower by far. if they grow at a 1 % clip, that's a disappointment. for the revenue stream, that's a loss my solution, you need to view every hardware sale as like a one-time game. hardware is cyclic l but the subscription business is like a cable company. follow with the tech analyst think about a cable company hits you up for more money every month. they have a 99% satisfaction rate they do no favors but saying there are 420 million paid subscriptions. we don't want that how many subscribers, not subscriptions. we need that we need to build models. what's the churn you can find out the lifetime value of the subinstructioscrip. i know this business here is the issue, a tech analyst who covers hardware or software companies won't understand any of this they might not recognize the lifetime value of a credit card holder you can do the streaming, let's say bang k of america if you have 1.4 million people owning it and you know the rate and churn, you can see the pri

amazon, microsoft, samsung. facebook didn't disclose that to the use ers, did it? >> senator, my understanding, and, again, it was not my responsibility or my team, is that this was designed to enable those phone manufacturers to build integration within the facebook product to serve those consumers using these devices. >> okay. your algorithms are such that if i watch a video on a topic, i'm immediately shown videos on more extreme versions of that topic. we call that stickiness. is that correct? >> this is not the way the facebook platform operate today, senator. >> but it did for a long time, right? >> senator, mark really led through -- >> can we agree on this, facebook has now become the major news source for many, many people, probably the major news source. is that true? >> i don't believe it is, senator. i believe that more and more people are interacting with other people -- >> 60% of your users say they get their news off facebook as their primary source. isn't it true, i really want your opinion, that facebook has chosen to advance a set of values in whi

charles: in an amazon world where everything is cheap, everything gets lower and lower, maybe we're in a situation where the focus is not on what we were focused on when ronald reagan came into office? >> i think we would at least try to remember some things. if this is an environment which you have to cut rates when we just saw in some revised wage number that were out yesterday, all of you were reporting on it, 5% clip in 2018. 4.7% revised in 2017. wages and salaries taken together running at a 5 1/2% clip in june. the savings rate at 8.1%. i'm just saying i'm looking at all this and i'm saying, if that is an economy in need after little goosing on the part of the federal reserve, man, that is not the economy that i remember in the past that would require it. charles: maria, what powell is saying what he has said he wants to preserve those numbers neil is talking about. why be the fireman, why let this thing fall apart to try to put it back together if they can take steps, a, lou, to compete in the global economy against other central banks? and b, keep the prosperity going? on janu

it's oil, nat gas, amazon, right, cheaper products, you know, robots. so there's a lot of forces in the u.s. economy and we know that the trade fight is tamping down business investment. i don't see weakening the dollar improving business investment. i think the fear is that you raise rates, to dagen's point, you will have more long-term capital management. neil: it will continue the froth. >> i think you're right. >> that trade fight probably has a lot to do with what will be happening today and what will continue to happen. all the indications we have from the talks in shanghai is everybody expected, is we are really going nowhere fast. i don't think anybody expects us to be going anywhere fast. neil: the longer this is unresolved, the more rates would probably come down. >> but i think there's motivation on both sides. everybody keeps talking about how china's trying to put this off until after the election. i have been seeing, i keep getting indications from the president himself in his tweets and comments that he's maybe motivated to do the same, t

in pink is apple, and orange amazon, and white soft. last year apple was in the $1 trillion market cap club all by itself. right now trying to get back up there and join microsoft. it will be interesting to see whether investors bid up the shares as the summer goes on. vonnie: abigail, thank you for that. the u.s. and china wrapped up a new round of trade talks in shanghai. the white house called the session projective -- the session productive. still with us, stephen blitz, ts lombard chief u.s. economist. how are you modeling it into your forecasts? steven: basically, we think there's obviously a lot of politics involved in this. there's a lot of midwestern farmers getting hurt by what's going on. i think it becomes kind of like an arms troops. i don't -- arms truce. i don't think they could possibly get to a full agreement. i think they recognize that. i always thought they would just do agreements in steps. let's agree on what we agree on, but we can't agree on, negotiate that, and have the existential threat of tariffs weighing on

she used to work for amazon web services. a tipster eventually contacted capital one, said you know there's someone on the internet right now that's bragging they have done this. turned it over to the fbi. the fbi was able to very quickly find the suspect's address. boom. there you have it. she's now facing charges of computer fraud and abuse and could spend five years in prison. stuart: i don't think the security of the cloud is at stake here. ashley: no. stuart: what's at stake is your employees. ashley: yes. stuart: if you've got one disgruntled employee who is doing this for whatever reason, look at the damage. 106 million people. susan: they put a number to it already, capital one says it will cost $100 million to $150 million in terms of cost. compare that to equifax, over $500 million. much broader, by the way, number of customers impacted there. stuart: okay. >> 200 years ago -- they took down one employee took down a 200-year-old bank. stuart: how do you find the bad apple before you put them to work? the ten-year tr

we've managed a series of all-time highs this year, with amazon and facebook and netflix, without apple hitting an all-time high. if you think of all of these bellwether stocks that have carried the market at various points, those still have some participation to do, some further highs to push to. david: whether it is apple or another stock, is the market prepared for a long, drawnout conflict with china? it's been a wild now, and it looks like it will go through the election. vincent: there are a sense that is earnings continue, we haven't seen it bleed into trade talks. of the fx in terms market, the stock market, is what will trump do after a 25 basis point fed cut? i would not be long anything going into the data friday. it would not surprise me whatsoever if he asked the treasury to be in the fx market. david: what would be the point of that? treasury officials don't have enough money to make a big difference. vincent: it is simply just to shake the tree. and central banks never really move the market, just a strange feeling i have that he may do something which no other president

but just in the way the story is developing, she had worked for amazon cloud services for a number of years. she's clearly mentally having a lot of battles. one thing that let the fbi find her home address was she had shared a vet bill, i guess her cat was sick, so it had her home address, her real name and that's one of the reasons they were able to find her and arrest her. maria: wow, incredible story. >> it just shows somebody very much on the fringe but who wanted some sort of acceptance if you like from her peer group. but we know with equifax, for example, which went through a similar hack, they paid $700 million to settle a lawsuit, i should mention a class action lawsuit was filed yesterday in dc, someone in connecticut who has been affected has started to gather the troops. >> you know, maria, what is chilling in this case, a lot of hacks we think of foreign agents or people overseas. it's a reminder that for big companies, you've got all kinds of developedders coming in and out, -- vendors coming in and out, and a determined hacker who has an inside track, it's very, very ha

she is a former worker at amazon's cloud decision. the bank tells fox news that every current and previous capital one customer and anyone who has applied for a credit card at capital one could also be affected by the hack. cheryl: a senate panel is holding a hearing this morning on the federal aviation administration, particularly oversight of the agency. the senate appropriations committee expected to discuss the future of the boeing 737 max. the max has been grounded since march after crashes that killed nearly 350 people. boeing last week posted its largest ever quarterly loss. lauren: tariffs are mentioned in many of the conference calls held by these major corporations reporting their quarterly results. in fact, treasury secretary steve mnuchin and robert lighthizer are in shanghai, china right now for day two of talks with top chinese officials as president trump is ratcheting up pressure on china to quickly reach a deal. cheryl: jessica stonies at the white house with more. good morning, jessica. >> reporter: lauren and cheryl

sure it is absurd to see you tax google apple facebook and amazon now we tax your wind is completely morani we tax the technology companies because they reap enormous profits in our country millions of billions of euros and there's no reason for them not to pay taxes why in exports are a completely different thing when you feel it is unclear how much the us tax on wind will actually cost the french economy if it ever came to that experts say it's mostly makers of cheaper wines that might feel the pinch as their bottles won't find buyers in the us asked for the country's best vintages they should be fine. the united states is the biggest export market for the french outside the e.u. but only in terms of nail you not volume that means the american strength french wine that is expensive and i'm sure an american who buys a bottle for $100.00 or $150.00 won't think twice before buying a bottle price at $180.00 or $200.00. for the others there's always a decent california fun delta toast with. and from wine to be here belgium is known as one of the world's biggest and best beer producers a

we got a statement from amazon. it says amazon web services was not compromised in any way and as they put it functioned as designed. for capital one this lawsuit could be the beginning of its troubles. the company estimates that the breach could cost them up to $150 million. neil. neil: grady, thanks. a new probe of parents using a legal loophole to get college financial aid for their kids. jackie deangelis has more. >> nice to see you, neil. outrage over a new college admissions tactic concerning financial aid. "wall street journal" is reporting that the education department is investigating a loophole where wealthy parents transferred guardianship of their child to qualify for scholarship of their grants. through the transfer, only college bound earnings, their earnings savings are considered. still legal, no, but it reads as a whole lot of ethical questions. some college consultants are advertising they're able to save families money without specifically saying what that methodology is in the marketing materials

i mean, amazon is off a hundred bucks from july 12th, but really, in kind of a weak take for large cap today, as well it's hard to read. >> true, indeed. >>> let's get over to sue herrera now for a knnews update. >> here's what's happening at this hour. president trump talking to reporters before heading to historic jamestown in virginia to commemorate the 400th anniversary of american democracy. he says black legislatures who plan to boycott his appearance are going against people of color. >> they're so happy that i pointed out the corrupt politics of baltimore it's filthy dirty, it's so horrible, and they are happy as hell so you may have a couple of politicians boycott, but it's all a fix. >> thousands of sudanese students have taken to the streets. security forces fired live ammunition on monday to disperse student protests, killing at least five people. >>> and take a look at this. a cable stayed bridge with the world's largest and heaviest span was rotated into position in northern china and that bridge will have eight lanes on its 130-foot-wide deck the bridge's total weight, i

stored onad been servers rented from amazon. capital one says it is unlikely any of the data was used for fraud. that is your business flash update. a quick check on u.s. markets. two hours into the u.s. trading s&p stillow is lower, off 3/10 of 1%, nasdaq leading the losses. slowing sales into the full year, given some of the trade tensions with china. -- the vix, ithat call that unchanged. i will call this lower, weaker, but not panicky. guy: europe looks a little worse. it certainly does on the continent. the dax down 2.1%. there are individual stock stories in their hurting the dax. downsideding sharply -- that is the monsanto roundup story. more gloom out of the aviation sector. the london market only down four of 1%, but, -- 4/10 the pound is kind of rescuing the british stock market. ♪ guy: 30 seconds to go until the end of regular trading in europe. a bright red trading story on the continent. mib down.ftse nordic markets down. the london market faring better. let me show you why. the reason is the british pound contin

a former amazon employee has been charged. the data had been stored on servers from amazon's cloud services unit. capital one says it is unlikely that any of the data was used for fraud. a warning from bayer. the german company says that reaching the full-year forecast looks increasingly ambitious. bad is threatening the -- weather is threatening the performance of the agricultural division. there is a number of plaintiffs in the weedkiller lawsuit. and steps to move past a scandal. the swiss asset manager has named a blackrock veteran as its new ceo. its staro it suspended bontrager and dismissed them for what he called gross that's what it called gross misconduct -- for what it called gross misconduct. that is your "business flash." guy: thank you very much indeed. mexico's president lopez obrador says that rates in his country are too high. he spoke exclusively to john mickelthwait in mexico city on monday. pres. lopez obrador: one thing is what is to be decided and another is what is possible. i would like the central bank

amazon is huge in the cloud. the stock is down 8 bucks, 1903. >>> facebook says its digital currency, the proposed libra could help law enforcement. do we have anymore on this, why they're saying that? susan: basically facebook is trying to sell libra to regulators saying it is okay people thought and do say cryptocurrencies is a haven for money launderers, i will is lit activity, drug dealers as well. david marcus, the head of colibra and libra at facebook says if you look at blockchain technology which is behind crypto, it's a public ledger of transactions, you have to put information out there in the public. using that information you can trace people, to help law enforcement track down who is using this, the bad guys in all of this. but of course, you know, we heard from the president and saying that if you want enact libra you better get a chart, a new currency at play around the world. stuart: before we close out this block, i do want to thank my colleague and friend mike murphy sticking with us religiously

>> amazon webb searches have been so impenetrable you can't game fraud that's one of the reasons why cyber arc is always taught there are people who can lead. they have the keys to the kingdom and you have to try to stop them. this was not equifax it was espionage. >> the stock is nowhere near the equifax situation on capital one. >> capital one eyes glaze over, until they look at their bank account one day and maybe something changes. capital one, people are going to have to say -- richard cramer is a pretty good guy -- smart guy i don't mean pretty good capital one has been the one to shoot against. they make you pay a lot and give you a lot of credit. this is apple's chance apple is not as opportunistic as i would like them to be. people will be up for grabs if this thing mushrooms. >> mastercard up 21 stock is a little bit lower i think. >> it is down -- my travel trust owns it. they did not guide up the way i would have liked but mastercard is one of those stocks where you wait three days and then you buy them. here's the problem with mastercard thin tech is like cloud tech thes

bank does this or amazon does this or your airline does this and i keep saying the irs is not an airline. it is not a bank. it is the tax agency and it can do terrible things to taxpayers. it is the most powerful creditor in the world or in the united states at least. and so we need to be able to pick up the phone and talk to the taxpayers of the united states when they want to talk to us about their taxes. host: taxpayers have picked up the phone to talk to you. we will start with ralph. good morning. caller: good morning. i have two questions for nina. host: we are going to work on having nina olson here. try that again one more time. go ahead with your question. caller: i have two questions for her. and i'm going to hang up. i'm a vitaestion is site coordinator and as you know we use tax layer and -- keeps it'sng 1040 and they say up to the irs to put it on one. my second question for sole proprietors and independent contractors what should they do to reduce the risk of being put under an audit? tost: first of all i want thank you for volunteering at a vita site. income taxlunteer ass

so she knew amazon's system very well. in this case, where capital one had a potential breach in the firewall, she was able to get in and she used the screen namer ne eratic. there was a white hat hacker who fight ifigured it out and got ih with capital one. as you go to the cloud, the risks are increasing. here we have one for capital one. the ceo addressed it, saying he apologized to everyone, doing their best to address it. maria: look at the impact on the stock, down 5% on capital one. >> this is serious, 100 million people. maria: normally you see all of these hacks from china and russia and you understand what they're trying to do, try to infiltrate our systems. but an american citizen just hacking, a hundred million accounts. >> it's the new face of criminality, the jesse james of this century, i guess. >> we saw with equifax finally a number put on the cost to the company when they had a monster fine for having allowed a lot of data to get out. i think this is no longer sort of a sin-free world. now regulators are

you saw a statement come out from capital one where is amazon in this? what does this mean at a time when everybody is moving to the cloud. capital one has been very aggressive moving to the cloud when we talk about a firewall that was misconfigured on whose end, assuming from -- from the reporting it suggests this information was sitting on an amazon server, on an aws server does this become a larger story about aws? >> i think that's an interesting question to pose she is a former aws employee >> she's a former aws employee the data was sitting on an aws server unless i lost my mind, i would say, okay, does she know something about the way these servers are configured with clients that others don't? >> it was on an aws server she -- they didn't look to see whether i had done this, i can tell you that much you need some serious expertise to be able to do this, right she's got years spent working at aws. even though she's, you know, fatherly young fairly young, 33. i read they put up a flimsy firewall >> i'm trying to understand is that a flimsy firewall

a former amazon employee was charged. capital one says it is unlikely the data was used for fraud. ,hares of -- plunging announcing a plan to sell more than 3 million shares. just three months ago, beyond meat went public in the stock has soared almost 800%. in dubai have imposed their largest fine ever. the collapsed firm will have to pay $350 million, after being accused of wrongdoing including an -- this using investors money -- misusing investors money. there could be conspiracy charges in the u.s. scarlet: when it comes to corporate earnings, bp has blocked the trend, posting net income of more than 2.8 billion dollars, above the highest estimates. anna edwards sat down with bob dudley. bob: how to good quarter. our -- weref running and we also paid off our gulf of mexico sediment. -- settlement. capex, 16 billion to $17 billion, what is the risk to that number? what would make a change to capex? bob: we are right in the range of that. i think by the end of the year we will be bang on the end of the range we set. we are on track for that. anna: let me talk about the price of o

are in changing and the structural disinflationary influence of technology, not only because of the amazon effect, overall we have structural disinflationary pressures and qe has completely changed the game. the mindset of central banks needs to be overhauled. that is what i will say about the ecb and it applies to most of the major central banks around the world. however, the eurozone still has a growing population at the moment. there are less of those constraints there. the boj and ecb are pretty much identical balance sheet sizes. $5.3 trillion. versus $3.8 trillion for the fed. the euro zone an economy twice as large as japan. japan is the one who has way too much liquidity in the system. europe is theoretically not pushed to the end of the strain yet. in years ahead, it might go that way, but not quite yet. anna: let me ask you about what is going on in the pound. what is the lens you are looking at this through right now? seems that we are getting further away from any venue, any meeting point, physical meeting point of european leaders. without something like that on the radar, the

one that happened is in may this year when 55 people were killed in several prisons in the state of amazon as this is right next to were is located where this latest incident took place and it's what most analysts say is that what's happening in brazil is a country with very high homicide rates one of the highest in the world the world's 3rd largest prison population with overcrowding inhumane treatment and brutal riots as we have seen and what it's very very common is this brutal riots that are happening in the countries mostly because gangs want to send the message that the more violence they use is the easier to keep gang members in line in spite of this government have taken actions right after this riot happened but there's no immediate actions or policies in order to improve the situations in the prisons like over crowding shortages of personnel or guards inside the prison among other things so this is one of the reasons why it's very very common this type of situation the brazils prisons. deserves. still ahead this hour the oil spill that's choking sea life and people's livelihoods

is down.and amazon alphabet cooling off after a huge last week. facebook also put up a good quarter. the stock has been down a bit after that record fine of $5 billion by the government. paypal down 3.5%. let's take a look at the intraday chart of the pound. we have the pound at session lows. down 1.3%. possibilitys of the of a no dear breck -- no deal frexit counts. brexit mounts. pretty fast. we will come back to that. we will talk u.k. politics in a few minutes time. we will dig deeper into what is happening with the pound. let's discuss what is happening with these markets, more broadly. let's start with equities. has it changed your narrative? >> i don't think it has. i think earning season has been mixed. you have had company's report disappointing outlooks. especially on the industrial and transportation side, which confirms this idea that your pmi indicesthe globa that the global economy is weakening. the leadership market remains narrow. broad markete underperforming. confidencet suggests in what we are going to see out of the fed or thes

laurie but look that up just because it was a big dog was a hobby i thought good so i like amazon style are looking. to get it. i wish him much better that's how fires are screwed up to. thank you i. call on the north headlights ready. screw christie jack like to call a method who let down you said percent you should get a little pussy. a sign yes. i . think so i think that's why they are going to find out a lot of us. have a lot of ok. got hit. by the by going to. a lot of money ok got to tell you that i'm not going to. you know you have a. bit i. knew. you. were took a. oh ok ok. you're going to. come off well i got off the. wall. for fun only if i said i. was your. funny. oh. oh. oh. oh. there it was that in the way that they eat here. at me. like over. here tend to my. no i. want to. comment on p.b.s. and. i'm a very funny. for the fair exchange you know one little question that at. charity hospital or you're talking. told. us. the nukes on them meaning anyone have a. mind of having fun i'm going. to have asked you a question. none of us. in any. way. cast a tool in their yellow car

how do you break up amazon which is underpinned by cloud computi. google chose to work on -- historically it's rumored they're working on a censored version in china. they're inviting scrutiny and it's no surprise we're seeing -- charles: it doesn't help that they sort of kicked our department of defense to the sur curb and -- >> they're not working andre gone fly. that stopped -- on dragon fly. they stopped that. >> they were working with the chinese government. charles: thank you both very much. president trump just tweeting on the. u and china. the eu and china will further lower interest rates and put money into the systems, making it much easier for their manufacturers to sel sell produs in the meantime. too bad. what do you make of it. >> i think there's -- jack made this point earlier. there's all of this negative yielding debt around the world. there is slowing economies around the world. our economies are cup weld the rest of the world. -- coupled with the rest of the world. central bankers have to behave similarly if they want to stimulate

like amazon and microsoft. this is a special time. it is only just beginning. artificial intelligence is the great story of our time, but it is a story that generates lots of mixed emotions. great ambivalence. on one hand, the art of the possible. we see this tactical wonder. all of us spend way too much time on our smart phones working on these platforms. et there is this deep concern with this fear about jobs. the software is eating the world. the foundation of a good society. are we going to be left. society of the hyper rich and then the poor. living off a universal basic income. this is a real concern a lot of folks have. we did a lot of research. our latest book was about this. we actually think there is a song of hope here if you proactive. if you take the right steps. hen it comes to software and jobs or only artificial intelligence and jobs, only one of three things will happen. a job can be eliminated. they can actually be enhanced. think of using ways when you drive around town. you're actually being enhanced by a machine. we will see this come to me

also the structural disinflation issues, that is technology and demographics, not just the amazon effect, but also the fact that the extraction transportation and distribution of commodities is getting cheaper. i'm not worried about consumer price inflation. we know if we continue to devalue currencies and pump it in, they become more valuable than fiat currencies. that is different from real economy inflation. i have zero concerns about real economy inflation at the moment. a lot being written over the recent weeks. let's ask you about what's going on closer to where i am. we see some weakness coming through in the u.k. currencies today. the pound is weaker. one of the things we need to look out for heading into the summit, but also september, the end of october, what is the market focused on? the one advantage is all the negatives are well known. they are all long-term things. we did get those comments over the weekend michael gove singh brexit is becoming the base case. it is definitely not priced in the market. it may seem like it is priced, but this is a currency backed by very low

>> we have certainly seen amazon and other large retailers that are taking advantage of the urgency that the consumer wants. the consumer today wants whatever they order to, whichever mode, it doesn't matter. but at the time that they want. so they have much more control over it and a lot of these large -- have led the way but something anticipated and we've ordered 44 additional aircraft over the five-year period to make sure we have the capacity. maria: the story of the transformation of ups. it has been real positive.you have been overseeing that. where are you in that process? >> we are right in line with where we wanted to be. we decided a few years ago and this is not the first time ups has had to transform. we started as a messenger service in 1907 in seattle then the -- we've done it for five times. we've had such a good career and we are so proud of our legacy. but we knew that to have continued success like we have had in the past, we have to be willing to change with the times and so this transformation doesn't have a beginning, it doesn't have an end. it's a continuous transf

rising tensions as the brazilian amazon is opened up for more development. an indigenous leader is reportedly murdered by gold miners. and the tour de france has its youngest winner in more than 100 years, as the 22—year—old colombian

what are the takeaways from this amazon result? >> spending is back at amazon. they told us last quarter they will be spending some $800 million on trying to turn their two-day delivery pledge into a one-day delivery pledge. that has been more expensive than they thought it was going to be, and it indicated to investors it is going to continue at least for the next two quarters, rolling it out in the u.s. and internationally to try to increase the speed of delivery and integrate growth in the core retail business. vonnie: t-mobile has won the u.s. nod for the sprint sale, merger included. this is exactly what we were expected. does this mean that the two companies can go ahead with the deal? >> pretty much. they still have some stakes they need to be in front of and make sure they get aboard, but yes, it is a momentous occasion for the two companies, and this has been five years in the making. marcelo: it will be -- i call it a very strong race to see who can provide the best 5g. we feel very confident combined we are going to be able to do that, because the spr

so what does this all mean for apple, amazon, facebook, google and the rest of silicon valley? we're back with kim strassel, jason riley and bill mcgern. bill, let's take the facebook agreement first. what do you make of it? >> well, it's being made to be a bigger thing than it is. the ftc i think narrowly dealt with facebook's failure to comply with restrictions about telling -- not misrepresenting how they use data and how the data was shared. paul: it was a previous agreement. >> a previous agreement that they violated. i think they found the board didn't know or something. in some ways, i think it's a -- it was a modest response even though the fine was huge. i mean, a lot of people wanted them to go further. paul: for facebook, $5 billion is pocket change. >> right. that's the a argument. look, do we really want the ftc making these decisions or do we want congress to grapple with it and if they're going to set privacy rules, let them set clear privacy rules. in some ways, i'm gratified the ftc was modest. a lot of people are disappointed because they say this is pocket ch

transaction, amazon is trillion dollar company that paid zero in taxes last year, if we give a sliver of transaction, every facebook ad, every robot truck mile, we can generate hundreds of billions in new revenue and the great thing is when we put this dividend into your hands, thousand dollars a month, where does the money go, the money goes back to local communities and the economy, goes to car repairs, day care, little league sign-ups, all the things that make up healthier and stronger and would help create millions of jobs around the country. chris: i want to pick up on something, well, whatever it is, we pay a million in -- trillion and a half dollars in transfers, some conservatives are saying, if we would give everybody $12,000 a year we could replace the welfare state, yeah, everybody would get the andrew freedom dividend but conservatives can do away with social programs that a lot of people at the lower end of the income scale depend on. >> well, my program is universal but it's oped in and if you opt in you would be foregoing to certain existing programs, this would be a wi

i have my apple, google and amazon this one is obviously squarely in the middle of the trade sort of issues we were discussing to me as soon as the sentiment shifted from may to june, you had this stock up in a straight line 10% but here we are now, and i'll let carter speak to the charts, we're kind of at that gap level from late april. it's kind of hitting some technical resistance if you look at microsoft, you look at amazon, you look at google, it's a tale of three cities amazon had a's okay print to negative, google had an unexpected good print and it went up allot. google, alphabet and' many, expectations were low, off 10% or so from the all-time highs while the others were hovering around t. the option is implying a $9 monthly between now and next friday's close. on average the laviolette four quarters the stock moved 6%. that's a heck of a lot of price action for a name this big i actually think that expectations are low they put up a decent enough print into a weird quarter i think they almost have a mull began with the trade stuff i think the stock goes higher. options pric