kernen. we'll get to becky quick in a little bit. she's got great guests we should tell you about that she'll have on the program, mark andreissen and meg whitman. we'll look forward to those conversations a little later. first, let's get you up to speed on the morning's top stories. we begin with the unrest in turkey. riot police raided a protest camp in istanbul after days of anti-government protests, police moving into taksim square using tear gas and water to clear demonstrations. we'll go to richard engel in a little bit, but we'll do the markets first. >> okay. a little rocky. >> a little rocky. >> let's check on the markets this morning. i guess it is a surprise to

everyone that wall street journal has a big piece, we're rebounding a little today n asia and hong kong, shut down for the dragon boat holidays. got that going for them today. and in europe, we'll take a quick look, which is not bad. we got most of the selling out of the way yesterday. here is what's going on with all of this, the ten-year, as high as 2.25. energy fisrst, i guess. none of this is hurting oil, which stays around 95. look at the stuff we want to talk about here today in light of the wall street journal piece today. 2.17 got higher than that. almost hit 2.2 yesterday and we'll see the dollar, which probably benefitted from this as a lot of the emerging market currencies are weak, though europe is doing pretty well, and then gold, who knows, if the elite story in the -- >> you know when david wessel writes a piece on the front page, that's when things are --

>> if global tumult is gripping the market, you would think it would not be 1375. but you write things on a daily basis, it is the here and now. i expected you to come in and actually say, the last three or four weeks have really tran spired and if it is a surprise to anyone, they weren't watching the show. >> that is true. >> may 22nd, don't know how many times we said that the derivative, whether a six or whatever it is. even if we were on the possibility of going above 85 billion, the minute we heard that it is going to come -- start coming down, whether june or september or whenever it is, investors immediately take it to the n step and it started then and has been since then. the global market collapsed. you never come in and say, gosh, you were right, you never come in and say -- you say, wow this is interesting. global tumult grips the market.

>> two points to make. >> usa today also called it. >> yes, you were right. usa today called it the opposite. >> that's how they always call it. that's how business week, the old business week always called it. >> but i thought you were suggesting they -- >> no, no, no. i'm suggesting -- >> joe kernen did call it. however, here's my question, we have gone back and forth, you have always said that if we begin to taper, that's a good thing for the markets. >> it will. this is the initial -- we need to look beyond this. now i take greenspan's notion -- >> when does that happen? >> we have to get through -- now we're talking about it beginning at some point. >> talking about six months of tumult. >> by the time they start, by the time they start, they have gotten it behind us. we may have discounted it, like greenspan said, knowing that this is looming, that we have got -- back to the training wheels, if you're -- you feel pretty good, on the bike, but you're not going that fast, you

want to get the training wheels off, but for the first -- when you first take them off, you know it is looming, and you are worried about it. you got to get a shot at the doctor. you know it is coming. once you take it off, you may fall off a couple of times and now you're cooking. >> i thought it was like a band-aid. >> i don't know. we're not going to rip it off quickly. >> then is the fed failing? >> what do you mean? >> is the fed strategy of how they approached this by creating -- >> we don't know that. >> we just decided they created an enormous amount of uncertainty around what they're about to do. are they now responsible for all of this? >> we are the strongest economy in the world now and we came back from what was an awful deleveraging from this huge financial crisis and we have been doing, you know, 2% or whatever we got unemployment. i don't know if anyone knows what in hindsight what this unwinding is going to look like. one camp says it will work. some people think it will

proceed smoothly, others think it will be a disaster. >> that's what this is all about. >> i can just tell you, tumult is a scary word. for cnbc, as long as we're still standing, at the end of the tumult, it will be -- the economy, we need a little bit of interesting things happening. i don't know. i would rather have it going up. but tumult, these people will watch. look at the general news. always bad news. >> always bad news. let's figure out the news across the pond. time for the global markets report. we have ross westgate in london. let's begin singapore this morning. >> good morning to you. another volatile session here in asia. much of that volatility emanates in japan and that is because of a couple of factors. number one, what the bank of japan didn't do yesterday. and number two, what pm abe didn't say during the

announcement. a abe followed up and said yes we will do supply side reforms, but details are scant and will be forth coming later this year. nikkei today, it is softer. 12,750 is the point we need to look out for. that is bear market territory. what is also interesting is what is happening in japan, the gyrations and the bond market, a lot of naysayers a lost ammunition. they have been singing all along, if japan tries to inflate the economy, which they haven't been able to do, it will spread ripple effects across asia, much like what you saw during the asian financial crisis. would you be surprised the indonesian central bank hiked rates to defend its currency. equity markets bounced back. we need to look at other usual suspe suspects. thai index is down, continues to sell off. southeast asian exotic markets have been at record highs all along this year. if you flip the board and look at the thai bat, our eye goes to

thai bat, what happened during the asian financial crisis. the rate is up to 60. that sent a ripple effect throughout asia and the korean won fell. we don't have it on the board. the thai bat is around 30 or so. remember during 1997 or so, it raced up to 60 and then eventually that spread over to the indonesian rupiah and the korean bat as well. overall, much tamer waters and so far we do see the strengthening of the dollar/yen compared to 96 or 95. i think one thing that is important highlight is china has been missing out on the whole swing for the past couple of days due to the dragon boat holidays and i think if the -- if market reaction is quite negative, we could see more volatility and investors need to buckle up themselves. ross, tomorrow, it is going to be a wild ride potentially. >> volatility is here to stay, that's for sure, chloe. in europe, little bit around 5

to 4 advancers outpacing decliners. we did dip below 6,500 for the first time in april. rebounded. flat at the moment for the ftse. cax up. as far as sector breakdowns are concerned, you see where we're weighted. telecoms down, vodafone is making a bid for kabel deutschland. and they want to spend some of the dividend they get from verizon. media utilities doing fairly well, more defensive end. bond market, we saw treasury yields rise, we saw riperiphera yields rise as well. yields in spain are lower. we hit 4.66 yesterday. that was the highest in six weeks. we keep our eyes on treasury yields. worth pointing out, you mentioned euro and the yen have been higher against the dollar.

what was interesting is those emerging market currencies have been funded by euro and yen. so as we saw those currencies rise, it was added to the pressure to sell emerging market currencies, things like the brazilian real, and the indian rupee down at an all time low as well. still pressure in emerging markets. as treasury yields rise, it increases the hurdle rate for owning investments in emerging markets. that's where we stand in europe. back to you. >> okay. thank you for that. >> all right, ross. what is interesting, i think, about what is happening in turkey and we'll talk about it throughout the show, obviously, it is not tahrir square, it is taksim square, but it is in a square, and -- >> can't figure up what it is. >> it is not -- maybe it started the arab spring in a pro democracy, but then it seemed it was in certain places it was undermined or taken over by the muslim brotherhood, became less

secular and more islamic. this is people that embrace secularism and drinking beer and stuff, and this is a guy that is blaming everything on alcohol and western influences. this is a guy who wants the olympics, who is in a running for the 2020 olympics, and if he wanted a piece in the journal about that, if this is his way of saying we're ready, this is the bridge between east and west, this would be a great place to do it, no one is going to want to -- >> do you understand what is driving all this? >> no. do we ever. around the fringes -- >> there was a very -- >> secular versus islamic in a different way this time, to a certain extent, right? >> i was reading a piece last night suggesting this was like occupy wall street and it was -- which i thought was completely inept -- >> i hate the new york media you find. >> i read.

i read. >> give me your reading list. i'm going to circle -- i'll use a magic marker and things that are okay that pass muster i'll circle. do you read slate or mother jones or -- >> this started with paving over what was going to be the only green space in the middle of istanbul. that's how this all began. >> right. right. all right. we get torn between business news and other news. i'm ready to go back to business news. >> let's go for it. >> it is our -- it's all we got. >> our bread and butter. >> it is. >> there is a lost businet of b news. go for it. >> in other news, three of the largest internet companies are calling -- we're back to politics. are calling on -- not really, calling on the u.s. government to provide greater transparency on national security requests. google released an open letter asking the justice department for permission to disclose the number and scope of data

requests that companies receive from security agencies. google just can't believe someone would be looking into someone's personal habits. that really -- that rubs them the wrong way that anyone would look at -- would keep detailed information on what people would do. they see that and say, no this would include confidential requests. microsoft and facebook made similarly worded statements in support of google and i like this story, because anybody who is a facebook shareholder -- >> where are you on this? >> i would rather have the government knowing some stuff to try to prevent me from getting blown up than google so they can sell me something. >> google, facebook, microsoft, apple, aol, i wrote a column about this yesterday, all in a bit of a conundrum now, the world thinks they're in cahoots in a major way with the government and all of your

e-mails are being tracked. that's what the original report suggested. they say that's not true. they can't really explain why that's not true. >> right. >> you think they have a reputation issue? do you think -- by the way, google, now gmail, businesses use gmail, businesses are saying -- >> you were expressed you were more about the web surfing that they knew -- you're talking e-mails are also -- >> e-mails, web surfing. >> you always go on the atomic thing, don't you? doesn't have any cookies, doesn't have any -- >> it is not called atomic. what is that? >> i thought you told me. >> i don't know about it. i know about incognito. >> is that one? is it free? >> on chrome. on google chrome, incognito. >> mm-hmm. i drew you out. >> not for those purposes. >> what purposes is it? so people can't glean advertising related stuff about you, what to sell you or thins

li like that? >> yeah, pretty much. >> all right. i think it is google, like -- shocked they're spying. >> if google comes out and says, look, we have 100 million user, some crazy number they have and half a billion users, and only 2% or 3% have ever been -- that's still a big number. so will that be enough to make people feel comfortable or not? >> yesterday, the most interesting thing about this -- >> or less than 1%. >> the huffington post crystallized what i've been saying and they had -- either strange bedfellows -- >> all the pictures of all the people -- >> people never on the same side and then they're on the same side. it is bizarre watching it, right? i think, like, rand paul and, like, al franken are on the same side of the issue or something. just bizarre. but what also is interesting is that the dems, the liberal dems

love the spying with obama. but that bush, the -- satan. come on, when he did it, it was awful. there were some who said this was bush anyway that just, you know, they tried to go back and -- is there anything that isn't bush's fault at this point that you know? the improving economy, not his fault. >> i'm still looking around. also, joe's other favorite story, facebook shareholders pressing mark zuckerberg on the stock price yesterday. social network held its first shareholder meeting since its ipo last may. the stock down 37% since then. zuckerberg responded to questions from investors saying, in part, nothing made me really think the fundamental strategy is wrong, without what we're building isn't valuable. >> i do have $30 billion, so -- >> and you don't. >> and you don't. >> seems look a good strategy to me. >> we're all good. >> on the same page.

not even 30 yet. i can't say a bod woad word. can you? >> no. >> what a country. why doesn't he come on here? we'll kiss up to him, won't he? he's like the coolest -- will he come on, do you think? >> not after some of the comments made. >> not by us. because i like jesse eisenberg better? i do. i think he's a better mark zuckerberg. coming up, looking for opportunities to invest beyond the borders? if so, look at what happened yesterday because market gos go crushed. which economies are poised for the strongest growth. the answer from the world bank next. later, a terrific trio of guests gathering to discuss global market fears at the central bank punch bowl could start -- might start lowering the level at some point. that's at 7:30. the ceo of cargill. and an hour later, hp boss meg whitman on her company's turn

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welcome back. u.s. equity futures looking for a rebound after a volatile session yesterday, making headlines. kfc's china sales dropped 19%, that's an improvement from the 29% decline in april. parent company yum brands says it is beginning to see signs of the recovery from the double whammy of a bird flu scare in an earlier controversy over its chicken supplies. let's get the national -- have one of the two -- basically hunks at weather channel. if there is ever -- >> these people know how to

dress. >> if there is ever a calendar -- >> oh, boy. >> you tell me wolf reynolds and eric fisher aren't going to be leading the way. would you do that? you're not above that, are you? >> no, i have no shame. no shame. want to do a calendar, we'll do it for charity, storm relief, all about that. >> that's an idea. >> i don't know if anyone would buy it, that's another whole story. >> it may have to be complementary. >> for you today, i did the sleeves, rolled up, for good reason. today is a very busy day of weather for us here. let's jump into it. it could be a dangerous day in terms of storms. we have got a system developing here, middle of the country, showers, thunderstorms already. but later on today here, eastern iowa, moving over towards chicago, pretty explosive setup for severe weather. really warm outside. look at the temperatures, 70s, up to around 80 degrees chicago to st. louis. also stepping outside this morning and notice it is huge over a big chunk of the united

states. dew point up to the 60s and 70s. ingredients are there. back toward eastern iowa, chicago, back to the south and west, see storms develop, chance of tornadoes at onset and damaging straight line wind gusts from lines of storms that will move down across indiana, likely ohio and tonight, eastern ohio to west virginia. wouldn't rule out kentucky either. bottom line for today, could be a really damaging one in terms of weather. don't want any projectiles outside. before you head to work, bringing in the trash cans, the patio furniture, that sort of thing. as this moves to the east, we're also going to see some pretty significant weather today. today, finally in the northeast, dry day. you can walk outside without the gore-tex. tomorrow, this same system moves in. that's going to bring a chance of tornadoes to the mid-atlantic and really heavy rain into parts of new england and new york. look at d.c. and philly tomorrow. parts of maryland and delaware, chance for some spinup of tornadoes, damaging wind gusts,

unstable situation there. storms to the southeast. we have a tornado threat of 4 out of 10 in washington, d.c. for tomorrow afternoon. 40% chance of a tornado within 50 miles. then the rain. north of the severe weather, we're talking 2 to 3 inches across p.a. 3 to 5 inches of rain for new york city, lower hudson valley and into new england. seeing plenty of rain already this june. in new york, we could be approaching 13 inches of rain over the first 13 days. usually this time in a month, you've seen 1.6 inches and we have seen 8 already. a big flood threat thursday, late thursday into friday, a lot of flooded out roads here, streams, rivers, they'll be running really high. really unusual situation as a matter of fact. >> it felt like that, eric, back here. i didn't know it would be 13. it felt like -- you apparently don't care very much about the u.s. open. starting in philadelphia. i mean, that is a tornado possibility in -- >> i'm glad you asked. yeah, i mean, this opening round

looks ugly. they have seen a lot of rain they had to deal with already. but raining, and a chance of isolated tornadoes. we cannot rule that out, outside of philly, tomorrow afternoon. >> that's unbelievable. that's not good. but i would -- how many hits do you do a day for different affiliates and stuff, eric? >> depends on the day. this morning, i did stuff for the weather channel, i do this, online stuff. >> do any of them feel like family? does it ever feel this good on any of the other -- >> you're like a brother to me and becky like a sister. >> i'm wondering whether it is a one-way street. >> i'm the stepchild then. >> stepchild. do you ever talk cnbc? i was on, on the golf channel on monday when i was in philly and i talked about the weather channel because of what was happening. we had some rain. i even was able to bring up the sci-fi channel because betsy ross' house is haunted and i brought up ghost busters. do you get the whole synergy

thing with the different assets -- >> i like it. i like it. there is tentacles in a lot of different areas. sports and weather and news, all covered, your business, all into one family. christmas card will be heading your direction. >> you can see how important the weather channel will be for the u.s. open. >> we'll want you signing that. we don't want a christmas card for you. one family christmas card. >> i cannot believe -- >> and home baked christmas cookies also. >> everything was -- this is such a big deal. u.s. open. we'll be down there on friday. i don't want to be in the rain. >> no. >> we have ian poulter. >> the weekend, the weekend is the payoff. saturday and sunday look great. >> playing first and second round on saturday and sunday. that's bad. all right. we'll prepare for the worst and hope for the best, eric. thank you. >> all we can do. >> you're right. >> we talked about mark zuckerberg and facebook. he's not the only ceo defending his company. jpmorgan. >> jamie dimen. >> talking yesterday, this story

never goes away. >> check this out. >> talking about the disclosure his bank made last year about the london whale and the trading losses. >> not a happy man. >> i don't know what more i can say. bad strategy, badly monitored, badly controlled. embarrassing. terrible. sorry. i can give you the ugly details behind all that, but badly reported, the reporting wasn't right. badly -- i said the risk and a whole bunch of different stuff and we came full kimono, that's what we did. i sat in those meetings, myself, and said make believe the pope is over here, and the chairman of the securities exchange is over here what is the right thing to do and that's what we are going to do. you have a million people second guess what happened after the fact. but we did everything that we thought was the right thing to do. there was no hiding.

no lying, no [ bleep ], period. >> all right. >> he should run the show. always thinking about the pope sitting right over there. >> and like your grandmother, the things you say. >> all that incognito stuff. >> you don't need to open your kimono, though. don't -- >> not if the pope is around. >> or if any of us are around. none of us need that. dimon made the -- damon on the other hand. >> matt damon. >> behind the candelabra on hbo. a lot of opening of kimonos and the pope would not be happy with that. >> i can say a word about that. comments -- he made the comments in response it a question at an investor conference in new york. shortly after he spoke, the lawyers, jpmorgan lawyers filed papers in a manhattan federal court seeking the dismissal lawsuit that accused the bank of deceiving shareholders about the so-called london whale.

i always thought that you see the losses that were specific to the whale, but i thought in relation to the overall operations that the bank -- >> stop asking questions. >> you do a couple of quarters where even with the whale, made billions of dollars, i thought it -- >> nobody ever told you about the whale, you would have no idea. >> someone wrote in yesterday about we were talking about jamie dimon and i guess with jack welch about how, you know, the chairman -- the ceo and they wrote in, wow, without jamie dimon, what would the ceo -- how much would they have lost without him? i almost sent back, you said lost, how much did jpmorgan make last year? there are people that don't know anything that -- >> i'll get in trouble for saying this. he said it was a tempest in the teapot first time around, he was probably right.

another story that won't go away. herbal life saying an online survey showing that 3.3% of the population had bought its products in the last three months, joe was drinking some of it. >> no, i wasn't. i was eating the candy bars. send some more, please. >> they're not candy bars. they're nutritional bars. >> i think of them as candy bars. they're pretty good and protein. i would like some more. >> the company under fire by big ackman arguing that the survey indicates the company has about 8 million customers in the united states. that's amazing. he called the company a pyramid scheme and predicted shares would be worthless. herbal life denied the claims and if someone from herbal life is listening, joe would like some more -- >> how do i get them -- if the company doesn't send them to me, do i have to go it a distributor? >> i'm surprised your anoth ed distributor. >> the candy bars are easy.

if you're a little hungry, not a lot of carbs. i like the peanut butter ones. if you're wondering. still to come on "squawk box," the ceo of one of the world's largest privately held companies and that is cargill. he'll join us live at 7:30. plus two major newsmakers in the world of technology, marc andreissen, i love him. >> a great hour. with becky out in vegas. >> great free market guy. >> i love him. i love marc. >> even though the other side of the aisle. >> we're on the same aisle together. >> that's a switch for you. and-packard meg whitman will join becky live from las vegas later. what happens there doesn't have to stay there today. out there owning it.

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♪ welcome back to "squawk box." our top story today, anxious global investors because of the tumu tumult. >> there it is. tumult. >> the last -- the last headline i held up was usa today two and a half weeks ago. bull looks good, solid footing. >> now we think they're calling it the wrong way too? >> no. the editorial page is always exactly right. why would this be wrong? joining us, alan gale, senior investment strategist at

ridgeworth capital management, kevin geddes, i called you j.j. for so long, you spy on people cheating on their partners, and president of fixed income at raymond james and scott anderson, bank of the west. i think i need to start with you, scott, for a second. you're chief economist. you say the bond market is already discounted. the fed moves too much by selling off too much already. >> yeah, i think the bond market is overreacting to fed taper fears. >> by going to 2.2% on a ten-year. >> they said they'll do it gradually. we don't think the economy is strong enough. we don't think economic growth or inflation -- >> globally. >> in the u.s. is strong enough to get the fed to move before december. >> we did have greenspan on the

other day, who said that the fed keeps saying we'll take as long as we want until the economy does what -- we'll keep doing $85 billion as if they can do it as long as they want with no adverse repercussions. he said the market will not allow them to go as long as they want. maybe this is what they're telling us. >> the bond market is doing the work for the fed. haven't done anything yet. bond yields are up. >> you mean for tapering. >> for tapering, exactly. i think the fed will be behind the curve. when you look at the core cpi or core pce inflation at the lower end of the target zone, i don't think we'll see job growth above $200,000 a month until the fourth quarter. we're looking at a slow second quarter, 1.5% gdp growth. i don't think that's an environment -- >> the economic backdrop, regardless of what happens with tapering, that could bring us

back to earth in terms of yields. yields aren't held low bit feds. these are lows you would expect given the economic background. >> the environment is still pretty sluggish. interest rate spending sector is sensitive to higher rates. we have seen mortgage purchase applications dropping 6% over the past month in recent rates higher. that will keep the fed a little cautious. >> alan, do you agree with everything that scott said. you have a different take? >> i think in managing the ridgeworth allocation strategies and looking for good valuations and improving macro climate and attractive entry points, i think the valuations are still good on an absolute basis and particularly relative to bonds, despite the backup. i think the macro backup -- backdrop is favorable. we're seeing steady job growth and the latest numbers that came out yesterday reinforced that. are we growing quickly, i would say no.

but i think the backdrop is good. i do think that we have a market that is to a certain extent its own worst enemy. has gotten extended. i think there is -- there is likely to be some kind of consolidation phase as we go through the summer. now, on the bond side, we're short durations in here because we think that while yields have backed up, i could see the ten-year moving up to 2.5 without really too much trouble and historically speaking, the yield curve can get that steep or steeper as soon as the mash market is condensed that the next move is to start tightening. i do think there is more risk in the bond side going here. >> it sounds like you're looking beyond all of this and you look for things that are cheap on a relative basis and then hold it through all this. is that fair? >> well, we still got some dry powder in the allocation strategies. i've got an overweight in

equities. i think that we are expecting a consolidation phase as we go through the summer. and if that happens, then we are ready to add exposure in here. in the mane tieantime, we'll be duration. >> you kind of agree. you think the bond market sold off more than it should already? >> i think scott is right. if you look over the last 30 days, we have seen a 25 basis point increase in the ten-year, another 25 basis point increase in the ten-year. from about 175 to 225 and then back down. as he was saying, i think the move has been made. there is two metrics that everyone knows. 6.5% unemployment, 2.5% inflation rate. we stand at 7.6, and a little over 1% on the core cpi, we're a long way from where the fed will stop doing qe. what we're talking about is when will they taper it and by how much? for us, it is late october, early november, maybe 20, 25

billion, still talking about 60, 65 billion of buying into the fourth quarter of 2013. i think it is -- bond market overreacted. we saw a little snap back yesterday. i think we're talking about economy that was near depression levels as a recession and moving its way out, but going to be a lot slower than everyone thinks. >> can what happens in -- i was reading this, in -- i feel international when i see what is happening. now talking about things that are happening in thailand and japan. we got some pretty stable markets here and they're large and liquid, but many times in the past, in the world, we have been shaken back to reality by small things in foreign places. how do you know that doesn't -- >> you don't. >> the rupee, have you been watching the rupee? >> not -- >> rupee has been -- >> on the move. >> the australian dollar, the

south african rand, have you seen these charts? >> problems. >> how do you know that doesn't -- while the fed is just whistling past the graveyard, how do you know something in one of those places -- the dislocation from all this global liquidity, how do you know -- >> just like europe, what is dislocation going to do for the u.s. and bond yields? >> how people react first. >> they'll continue to provide stimulus and we'll see bond yields fall. there is an active movement by japan to drive its currency up, to try to save its own economy. that's an ongoing thing. >> isn't japan one of the markets that could, you know, get in a little bit disorderly and make us wonder over here? >> absolutely. and we have seen a little bit of it this week. >> absolutely. >> yeah. >> emerging markets aren't doing well. >> honest answer, did you know the rupee was collapsing? >> i did not. >> did you know -- it came off -- >> did the rupee come back a little? >> a little bit.

>> alan -- >> this is real stuff. >> i know. there 17 ways to know someone is lying. that's assuming -- 17 different ways. did you know the rupee went down and came back, alan? >> i had been following the -- that dislocation that is going on. there is a lot of nervousness in india and the momentum there is questionable. just to go back -- if i can just jump in here real quick on the domestic macro story. one thing i do want to talk with our equity analyst is to find out if -- with all of these potential things that could go wrong, what is the condition of major businesses here in the u.s.? are they going to need to restructure in a major way or are they going to have to consolidate that would cause the market to make a significant move down? and inventories are in good shape. hiring is still going on. our view is that the downside

risk to the economy are relatively limited. and so as a result, you know, if you get a consolidation here in the equity markets, that's fine. i think that's going to create a stable base for a better second half. >> all right. i just -- just having seen history, remember i never heard of the thai bat until it collapsed and then the entire world took notice, remember? with everything we have been doing -- >> we were joking about the rupee. the rupee is serious. >> not joking. >> gold, a lot less jewelry being purchased in india. like there is things happening that dwoewe don't always -- >> alan and gale, thanks. two jakes didn't do very well. >> not at the box office. >> jack is not too old to reprise that role. do you think? >> you should talk to him. >> yeah. all right. ask him on the show. i don't know -- he's never been on. nicholson, right? >> i think we should get him on.

>> we could get his mother, his sister, his mother, his sister. anyway, i don't know where to go with that. still to come this morning, a ceo who says he wants to feed the world. cargill's boss will join us first on cnbc at 7:30 eastern time. plus, becky will join us live from las vegas. she's reporting from hp's discover conference. this is where the company shows off its latest and greatest technology. among her guests, legendary tech investor marc andreissen. and meg whitman. i hope she's listening. i think this is one of her favorite songs. >> she doesn't like this song. >> she doesn't like this song?

u.s. open week. down at marion. this morning -- >> going down there? >> we all are. we're going to be doing the show in golf shirts on friday. >> and raining. >> might be. maybe not. let's hope it isn't. >> do we have a tent? a stand? >> no comment. a tent where? tent pool? you know that expression. >> i do. >> you do? okay. all right. we're learning from the pros. >> we are learning from the pros this morning. >> recently played at montclair golf club in new jersey with mike stirliker. let's look. >> you want to start with your fundamentals. your grip, your stance, some basic motions of the golf swing. >> every bit of analysis for us is fundamental investor.

>> the security. >> with the business. is it a good business as measured by, you know, if i could pick one measure, it would be return on capital through a cycle. how well the business is positioned within the sector. and maybe how attractive the sector is as well. and then spending time with management, asking questions you ask folks all the time. how are you going to grow and how much risk are you taking to grow. >> you're looking at a security, a company, a stock or something and you're making the determination that in a good circumstance or good environment you would like to buy. >> i think you got to decide the environment you're in. we're in the environment where you think you'll get paid for finding businesses that can grow revenue and in a revenue growing environment. we don't think you're playing golf with the wind every day. doesn't exist. doesn't feel that way. i love to play golf with the wind every day and that environment -- take that. we focus on credit spreads. the environment with credit spreads are benign, we're more

inclined to take on more risk. and in the environment where there is lots of intraday volatility, we tend not to challenge that. we tend not to ask ourselves questions around, you know, why is there volatility? we try to think about respecting volatility and that environment take down the exposures because the market is telling you things are uncertain. >> if you would divide up short game, long game, how would you separate -- say that you've been playing for a while and you know, you're getting in an advance stage. practice on the short game? >> you practice more on the short game. 99% of golfers as soon as they get to the club they come to the driving range, hit it a long way. the short game is where you improve your score. >> out here there's like a long game and a short game. you actually have a long short strategy. >> to play the complete game you need to have a reasonable long game. on the short side we generally

do that against the callus. reach your judgment whether we believe it's reasonable to expect the company to miss. but based on the financial model but the final judgment is if they miss, will the stock go down. time on the short book tends to be in the three to four months, you try to pick up a coupon so to speak. we turn over the short book a lot. a couple of hundred percent a year, on the long side it's two to five-year investing but playing for something different. that's the point. >> like an old pro. >> and friday we will be live from the u.s. open down in merion. among our guests, all right. look at this. >> pretty cool. >> buch harmen. michael o'dell of pep boys. let me pause. let me pause. >> that's the action there. >> ian poulter is not just stopping by. i think he's going to hang with

us for a while. and to this day i don't know if i will ever, one, get over what happened to the u.s. team at the ryder cup but the individual effort where someone can win the ryder cup for an entire continent, carrying the entire team on his back, that was one of the greatest -- >> bring your clubs. >> a wedge. i'll bring a wedge. who else we got? >> michael price. >> michael price. don zier from newtry system. lose weight with that. and douglas yearley. good to talk about the recent -- >> the housing. >> have you looked at the housing stock. >> on a roll. >> exactly. coming up on "squawk box" a live report from turkey, riot police raiding a camp after days of anti-government protests. police moved in using tear gas and water cannons to clear demonstrators. don't know if you saw richard engle last night.

the latest from the ground at the top of the hour. at 8:30 eastern hewlett-packard's ceo will talk about the tech giant's turn around. [ female announcer ] there's one thing dave's always wanted to do when he retires -- keep working, but for himself. so as his financial advisor, i took a look at everything he has. the 401(k). insurance policies. even money he's invested elsewhere. we're building a retirement plan to help him launch a second career. dave's flight school. go dave. when people talk, great things can happen. so start a conversation with an advisor who's fully invested in you. wells fargo advisors. together we'll go far.

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coming up a live report from turkey and the latest on the unrest there.

at 7:30 eastern the ceo of car gill and meg whitman. becky will join us live from las vegas when "squawk box" returns. out there owning it.

the ones getting involved and staying engaged. they're not afraid to question the path they're on. because the one question they never want to ask is "how did i end up here?" i started schwab for those people. people who want to take ownership of their investments, like they do in every other aspect of their lives. [ whirring ] [ dog barks ] i want to treat more dogs. ♪ our business needs more cases. [ male announcer ] where do you want to take your business? i need help selling art. [ male announcer ] from broadband to web hosting to mobile apps, small business solutions from at&t have the security you need to get you there. call us. we can show you how at&t solutions

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volatility is back. investors searching for clues as to when the fed is going to scale back its monthly bond buying program. and why this time the market swings feel different. >> protests and unrest in turkey. investors in emerging markets taking notice and the turkish central bank acting to shore up and provide confidence. we're going to get the latest and the impact on the markets. >> and we're live at the hp discover conference, top ht

executives on the turn around plan. we'll talk innovation and technology as the second hour of "squawk box" begins right now. >> good morning. welcome back to "squawk box." becky quick is in las vegas this morning. take a look at futures, see how the market is setting itself up. we have green arrows. nasdaq up about 19 and the s&p 500 looking a little over 11 points. let's get through some of the headlines. a potential takeover deal that could have implications here in the u.s. the uk's voda phone approached cable deutsche land. it's fueling speculation that vodaphone might be more willing to sell its 45% stake in verizon wireless to partner verizon.

that's a story we'll watch. proxy firm iss is recommending that sprint shareholders vote for improved takeover offer from japan's bank. revised bid is 21.6 billion, that's a billion and a half higher than the prior offer. and carlisle group is seeking to raise up to $4 billion for a new real estate fund according to "the wall street journal." one of the largest real estate-related funds since the financial crisis. >> hp discover conference taking place in las vegas. the chief information officers from the top companies are gathering to talk innovation and new products and that's where we find becky quick this morning. i realized yesterday was a tuesday, so we're down, right, so down over 100 so that's two straight that this didn't work at all for our tuesday stuff. >> like watching the roulette wheel where you see green, green, green, and then all of a

sudden the streak is broken with a red and maybe that's the end. >> are there table games behind you? >> were you out last night? >> i was not out last night but i did have to walk through the casino to get here because we're in the venetian in vegas. i had to walk across the floor to get here. i was tempted to put down a bet but i didn't because i already lost ten bucks in the slots. >> what time was it? >> this morning? i was walking here at 3:00 in the morning. >> perfect time to play black jack. >> people there like this. i know. >> all over the place. it was crazy. i really felt kind of old because i was all dressed and ready to go and up for my morning and all of these people still out from their last night. >> i hope you're walking around with someone, you know, that you're not walking alone flew the casino at 3:00 a.m. i just -- young, beautiful, i mean. >> got a team of people. >> i was with someone who

already got propositioned this morning, so people are kind of crazy out here. >> that's what i mean. >> people come out and lose their mind. >> you need muscle with you. any one even look twice, history. >> you would get them for me. thank you, joe. appreciate it. the reason we are here is because of hp discover. you can probably see behind me, this is a huge arena. this is the company's annual event here in america. it's how they meet with customers and explain their strategy, they show off the new technology and try to win more business. they are here for three days and if you want to know the numbers there are 12,000 attendees, 3200 companies from 90 countries. the ceo meg whitman is going to sit down with us, the company coming off of a much better than expected quarter. the numbers were cheered by wall street. the stock is up 100% since november. but this is going to be a long uphill battle. we'll hear from whitman where she thinks hp is that they

expects to be five years. we'll see if she is ahead of schedule. we'll also get her plans to try to tackle a difficult industry trend that's out there, things like the decline of the pc. industry wise pcs suffered their worst sales declines since they started keeping records, a huge deal for hp because it's the largest pc vendor in the world. despite the struggles it is still a huge force. the company rakes in $120 billion a year in revenue and that makes it the biggest in the industry by that metric in terms of revenue. along with meg whitman we're going to sit down with mark andreessen, one of the few who has established multiple billion dollar companies. we all know him, he runs a venture capital fund, on the board of hp along with the boards of ebay and facebook. and we're going to get the chance to talk with him about what is new in the world of technology, his thoughts on the

nsa's prism project. we'll get thoughts on these. and our other special guest include dreamworks ceo. we have -- he's going to join us, he is hewlett's executive vice president. we'll talk innovation, the movie business and much more. and at 7:40, we have the man behind hp's data needs, colin mahoney, general manager of hp vertica. some of the amazing things that nasdaq and other businesses are doing with big data. we have a busy morning in sin city, and i'll sended back to you. >> so here's the question. what percentage of our guests this morning are starting their morning now or going to be ending their morning with us? >> no, i'm pretty sure all of our guests are starting their morning. yeah. i saw some of these guys late last night. >> they have a morals clause in their contract too. complicated.

>> big days. they have big days ahead. >> you're at the venetian. >> yeah. >> the fanesian is in arizona. >> that's fairly new. must be a new place, the va nenenesian? >> i was here about 10 years ago. and it was new then. it's a beautiful place. >> it's mr. sheldon's place. >> has it got a pool? >> i looked out my window and saw about six pools. >> a pond and a pool. >> plenty of them. >> a pond and a pool. >> a cement pond. >> pond good for you. >> caddie shack. of course. >> caddie shack 2.0. we had no time to talk to you. we talked to her for like three minutes. stocks and bonds have had volatile sessions. it has been, not to say we welcome it but something at least to pay attention to.

investors wonder about the fed's next move. joining us is doug cody, chief market strategist at ing investment management and derek young, made it, president of the cloble asset allocation division at fidelity investment which is so big. fidelity. the founders confusing. there's johnsen out at fidelity, they all have billions of dollars, right is that what we need to know? >> and they all are really from our standpoint concerned about our shareholders and taking care of their needs. >> good one. >> i'm trying hard, joe. >> 446 -- 446 billion under management. and you do, you're president of the global asset allocation division and i was reading your stuff. you're right, i think, that the fed, they were nowhere near tapering but they started talking about it. you my that was on purpose to get us thinking about it? i do. not everyone does.

i think you do, right? >> i do. basically i think what they were doing was trying to send a warning across the bow to the market and trying to make sure the people taking excessive risk are thinking about why are you taking that risk. it is a good warning signal and those speculators who think the fed is ultimately not going to move ever, you know, realize there could be pain particularly if you have leverage trades on. >> it's healthy. >> absolutely. i think it's very healthy. i think from my standpoint you need worry. you have a market that's frankly looking for an excuse to sell off and the fed gave it one. it can easily turn back around as you know, when bernanke could come on june 19 and say you know hey, we're going to sit tight for a long time, the market could be off and rallying again. that's what happens in short-term moves in the market. >> doug, you do pay attention to the things that happen not just here, right. you think japan is something we need to watch? >> absolutely.

you saw jed japan stayed pat on their monetary stimulus. i think that got the market volatile yesterday. it wasn't the fed. the ecb, the german constitutional court said omt, the monetary transactions, they might not be able to implement that. so that got the market volatile. what i'm seeing equity market is following fundamentals. i think this has a ways to go. >> higher. >> yes. absolutely. corporate earnings growth is positive. manufacturing, despite the weakness contraction in manufacturing is looking strong. and the consumer, you have to look at the consumer. >> how do you explain the past three weeks? we were doing all hail joe before for his call on what -- >> that they really were getting us to pay attention three weeks ago, the fed. >> sure. i call it a tale of two markets. the equity market is euphoric

moving forward, but the bond yields are concerned about problems in europe, a lack of growth, lack of inflation. >> emerging markets are much cheaper, frontier marketing are cheaper than yesterday. is this time to -- you seem to love them, a good source of global growth, frontier marketings, peru, oman. a place to go? >> we have a free trade agreement with oman. >> we do. >> we do. and they are diversifying. >> we buy these that we should not worry things are getting a little scary in some of these places? >> by the way, we came up with our own acronym. it's pivot to the frontier markets. and brick a decade ago. brick despite volatility has been the best place to be the past decade so. much for the lost decade. you want to be in these ill liquid assets, tuck them away, they are going to reward you. you get paid for volatility especially in this market with so much there. >> i understand that our

fidelity, derek, we lost some light. i like to take that shot actually. if you say that he's in the dark, sounds like we're saying -- did we -- did the lights go out, derek? honest to god? >> no. they didn't go out for me. >> i don't know what we're talking about then. you're okay. good. so you heard that. is this the time to get sort of sexy and go to some of these frontier markets or emerging markets? will that work? >> you know what, it could potentially work. i tell you, i'm much more thinking about our long term views for those saving for retirement, saving for college, et cetera. and basically i love the u.s. still. i think the u.s. equity market is a good market for our shareholders to be in. when i look at i think new equities are fairly valued. you look at earnings doubled in the past 10 years, and the markets at the same level. i feel like you can get a lot here at home without having to reach out and take excessive risk in a portfolio.

>> equity premiums at almost all time highs. so that maybe that will help. but you guys can be both be right, right. it's good here. >> you have to be careful. everyone's looking at the u.s. market, saying u.s., u.s. that becomes a crowded trade so you want to do is spread your -- don't put all of your -- >> up to this. >> absolutely. >> derek has 446 billion under management. you have 160 billion. you know. >> you think about it. >> 184. >> the thing about it you go through and look at it, from our standpoint, well diversified portfolio is going to pay off. you want to have bets across the board. so i don't argue with the fact that you've got to think about emerging markets and china, right. they are well positioned to actually get their legs back under. it's not showing up in the data yet but it's going to happen. >> we got to go.

derek, thank you. i like the shot of both hancock buildings. thanks. >> let's get to the latest on turkey this morning. riot police raiding a protest camp after days of anti-government protests. police moved into taksim square to clear demonstrators. the market relies on foreign investors taking a big hit down about 15 percent in the past two weeks. turkey's central bank stepping in to ensure investors. will it be enough. the director of the turkey cypress prosect, also the author of turkey unveiled. thanks for joining us. >> nice to be on the program. >> first i want you to help me and the audience understand what this protest is about, what's really going on and what the end game is. then maybe get into some specifics. give us an overlay here. >> i think the first thing one needs to understand this is

about a few places and a few cities of turkey. i'm looking on the street, tacksism square there were battles, all of the shops are open. the trucks came in and restocked. tourists wapderring past with cameras. and turkey is 95 percent normal. but 95% of the pop hags are talking only about the last ten days. it's much more psychological than really affecting basic economic and finance indicators at this point. even though it has been quite a sell-off in the market and pressure on the lira. it's not the ruling prime minister's own base, 50% of the votes in election two years ago and his base is still solidly behind him as far as anyone can tell. it's about the other 50%, the

people that didn't vote for him and you have no real opposition party expressing their point of view. and there is a feeling after ten years in power the prime minister to do things his way and it's nothing that he said he wouldn't do. he advertised it. started doing it. but the peoples in the big cities are wanting to express an alternative opinion and say look, we are also here and we want our voice to be heard. >> so, everybody wants their voice to be heard. what is the end game, how long does this go on, what is the reaction, where is this going? >> well, i think we had almost carnival atmosphere for the last ten days where the main square was occupied by 80 different groups of all colors and complexions and views, and the city police taken it and i think that after some of the groups are still in the park but

basically a stable situation and the prime minister is meeting some of the protesters' representatives. at this point i think we can say we're waiting to see what the prime minister does. i think that the one thing he's got to try and find a way to do is come back toward the center. you've seen from his ruling party the president and his deputy prime minister have made extremely refreshing, calm and empathetic expressions of inclusiveness, have shown that there is an element of the ruling party ready to compromise. the prime minister is being combative and aggressive up to now. he has done this several times on several issues in the past. and i can't believe that he's not going to find a way to get back in the political center. >> real quick. the suggestion that you seem to be making is that we're watching these images but that there's a much larger city obviously of

istanbul and a country that is not partaking in this and suggesting that this is stabilizing. do you have worry that it goes the other direction? >> there is a possibility that it goes the other direction, and the places affected are in the cities. most of the cities, even the hotels that are on the edge of the square, are still operating. remember that even though it's been difficult to breathe sometimeses in the city center because of the tear gas, the tourists are unaffected by what's happening and over the square i'm watching every two minutes a plane coming in to land at the airport. nor malty continues but it's a huge political story. another thing different from the old days, the 90s with all of the internal conflict that we had. it's horrible that three people

died but compared to unrest in the past in turkey this has been a lucky escape. >> hugh, thank you for putting this in perspective for us. we appreciate it. in the meantime, hard to make this transition but we're going to try. to becky at the hp discovery conference in vegas for a look what's coming up. >> andrew, thank you. up next we'll talk about cloud computing and cutting edge solutions action how technology is helping all types of companies in ways that we don't always see or even expect. hp's executive vice president of technology and operations and the chief technology officer for dreamworks will join us after this. later on the program we're joined by ceo meg whitman.

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welcome back to "squawk box." we are live at the hp discover conference. among the things we've been talking about here and will continue to talk about through the day is cutting edge technology solutions for all types of companies. joining us now is lincoln

wallen, dreamworks animation chief technology officer, and john hinshaw, hp's vice president for operations. and thank you both for being here. >> good morning. >> people start talking about things and the most common thing i hear from technology companies for the last couple years is cloud computing. first i was confused but it does seem like this is a huge issue. i know that this is a place you've been putting a lot of resources. >> it's happening faster than i think most realize. companies are moving to a cloud whether it's internally, moving da to to the public cloud or moving their applications to software as a service or sas. we're doing that and seeing a lot of discuss tl tomers move faster than in the fast. >> it means they don't have to have as much computing power. you can store it and keep track.

zm or build a private cloud and run their applications internally. >> lincoln, at dreamworks animation i assume you need a lot of computing power to put together the movies that have been out, how do you use these computers and are this times you need it more than other times? >> yes. that's absolutely right. we have about 10 movies in production at any time. >> ten? >> ten. we release two to three movies a year. >> how long does it take? >> about four years to make. so that gives you the volume. but obviously in the last year or last six months of a movie we're doing the most work on it. it's the time we get the best feedback and sense how this movie is going to play. that what we try to do then is put more and more quality into the product and that involves getting more and more power. we have a super computer essentially and we burst that

above that using cloud in order to get enough compute power for more of artists to be able to change the movie. >> nike a nasa super computer to crunch this. >> it's effectively a super computer. >> how long have you been using the cloud as a way of getting more out of it? >> we started using the cloud in this way, way back in 2003, with hp help, both -- >> 2003? >> way before i heard about the cloud. >> yes. so media tends to be at the cutting edge of technology trends, and we started to work out some of the kinks, how to transfer data, many of the things that now are becoming sort of commonplace for ordinary enterprises we worked through a lot of the issues with hp throughout the last decade. >> so there are a lot of companies talking about the cloud, using the cloud and helping get it over. why are you working with hp and what have they been offering? >> i think i have given the hint that we tend to hit problems early. solving those problems are

really great advantages for our products competitively, also to satisfy the consumer's appetite for spectacle. hp has a deep bench, great investment in innovation and allows us to solve problems very quickly. that's what we value about partnership with hp. >> it's not the business side where things are moving quickly but consumers too. what's happening out there? meg whitman when i spoke with her last night saying things move so quickly a year ago people didn't want android and now that's all the rage. >> yes. we're seeing big demand for android and huge move to mobility. there's now 5 billion mobile devices around the world. a billion are smart phones. the other 4 billion will become smart phones. >> i don't think of hp when i think of smart phones. >> as meg said that's something we're looking at longer term. certainly we're in the mobile

device space with our tablets, we offer windows based and android based. we offer windows and chrome based notebooks so we're seeing choice in the consumer space. >> how do you move. is it fair to say things have gotten a lot fast ter in the technology space? >> they have. speed is accelerating. what used to take nine months now takes a couple of months. we're running the largest implementation of sales force dotcom. we got it up for 35,000 people and have done five releases in five months. a lot quicker than it used to be. >> i want to thank you both for joining us today. really appreciate your time and we'll talk more to you hater today. >> thank you, becky. >> joe, back over to you. >> thanks. coming up jamie diamond on the defensive or offensive i guess, on the disclosures in the london whale episode. but he finally let it slip. amazing that he doesn't more

often. then the turkey's islamic led government facing its biggest protest in a year. the latest from the man over there. richard engle. >> time for today's aflac trivia question. what is the average number of hurricanes along the atlantic coast per year? the answer when cnbc's "squawk box" continues. while he can't , he can focus on his recovery. he doesn't have to worry so much about his mortgage, groceries, or even gas bills. kick! kick... feel it! feel it! feel it! nice work! ♪ you got it! you got it! yes! aflac's gonna help take care of his expenses. and us...we're gonna get him back in fighting shape. ♪ [ male announcer ] see what's happening behind the scenes at aflac.com.

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now the answer to today's aflac trivia question. what is the average number of hurricanes along the atlantic coast per year? the answer -- 6.5. welcome back to "squawk box" on cnbc. i'm joe kernen. we were up triple digits earlier. get back several of the 116-point loss that we had on a tuesday. two in a row. after like 20 or 21 straight up days. mortgage applications up 5% last week even as average 30 year rates rose to the highest level in 15 months. not too late if you're going to buy a third place to merge into your two places you bought. you want to get these rates. the mortgage bankers association

-- >> buy the building. >> why don't you? >> mortgage bankers says rates up 8 basis points of .15%. the whereabouts of edward snowden you are unknown. the former cia employee with the acrobatic girlfriend who leaked secret documents checked out of hong kong, of a hotel there two days ago. no charges have been brought against snowden in the u.s. 200 grand a year, high school dropout. acrobat girlfriend. >> hawaii. >> good life. leading a good life for the nerdy guy. let's get to one of the top stories, the prime minister of turkey calling on protesters to withdraw from istanbul's park. he says the wave of anti-government demonstrations are part of a deliberate attempt to damage turkey's image and economy. nbc who else nbc's richard engle

is in istanbul when i saw richard last night, with the tear gas wafted up, at least you don't have the gas mask on this morning, richard. >> what a difference a day makes. no gas masks, no gas in the air. it's actually an uneasy calm right now. if you look in the square you'll see traffic, foot traffic, vehicle traffic. this's riot police presence but they are sitting down looking relaxed. they are not attacking anyone. no one is attacking them. the question is will this last? because there are still a couple of thousand protesters in the square, there haven't been clashes so far. but we've heard today is a statement from the turkish president he was calling on people to maintain calm. he was saying this isn't the arab spring, turkey's not a dictatorship, it's a multi-party democracy that the riot police

and he criticized them for the beginning of the protest movement being heavy handed. they have been using tear gas and water canons. we haven't seen live rounds. there have been fatalities but this is a hope that if this uneasy calm can hold that the worst of this might be over. yesterday a very different scene as you mentioned. tear gas flooding this part of the city, thousands of people in the square, they were being charged by hundreds at one stage there may have been 1,000 riot mess here and looked like this country was heading into a very different direction. today, they are trying to pull back and there may be clashes later but we'll have to see how big they are, if it's just 50 hardliners throwing stones at police, that doesn't make a revolution. that's just a couple of people who are making a go of it. so we're going to be watching it and we'll see what happens later in the day.

i would expect there will be some clashes but we'll see if -- how big they are and how significant. >> richard, we'll let you go. right, what a difference a day makes. this is one place i mean, i can't imagine how much tourism means to the turkish economy. everybody wants to go to istanbul. where you were last night i could feel plane reservations being canceled around the globe. no one wants to go into a situation like that. this guy ought to be able to figure that out if he wants to host the olympics in 2020. >> this is a tourist city, one of the hippest destinations around the world. i have friends come here all the time. i have an apartment myself, not very far from here and for the last couple of days there has been tear gas coming to where i live. this is an expensive area, the hotels around here are usually full, they are 3, 4, $500, 500

euros a night depending on availability. so this is not the kind of city that sees third world demonstrations where dictators are trying to impose their will and using the armed forces to stay in power. the demonstrators say that they are using excessive force. he is saying that they are deliberately trying to provoke him and there is a degree of a battle of wills with the protesters coming out and saying they are taking a stand over this park, they don't want more urban development, they want him to resign. he sees himself as the savior of the turkish economy, the man who has brought this country into an era of prosperity and there has been a lot of prosperity here. and the protesters say it's gone to his head and that he is not listening to any kind of criticism, and they blame him for escalating this situation

which one from as you mentioned all the tourist sector will hope has passed. >> thanks, richard. we got -- you get a chance to talk about other stuff when you come here. that's some of the interesting stuff to our viewers. the business implications of what happens here, not -- especially in a country like turkey. a cosmopolitan city. thanks very much to richard engle. >> we were thinking about this year. >> everybody wants to go. >> go to istanbul. you see that, it's hike you know, no way. >> maybe we go to vegas. up next the ceo of the largest privately held company cargill on business, agriculture, china buying smith field and cargill's chicago pron saysing plant in russia, coming right up here on "squawk box" from vegas. in the next hour a huge lineup from hp discover conference with becky including one of the most powerful names in tech, mark

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the national association of

manufacturers is holding a two-day or -- this is the same event in two cities. a focus on reform and immigration. one part is in washington, the other in minneapolis at a cargill plant. that's why we have gregory page, the ceo of cargill on. the largest private company in the united states, and a member of the national association of manufacturers. m page, good morning. good to see you. >> good morning, joe. >> not everyone thinks about how this would be beneficial or on the other hand, how the situation as it is today is a negative for manufacturers. can you shed some light on why it would help so much where the problems are now? >> we think the 11 million people that are here in the u.s. without legal status today form an important part of our economy, particularly in many of the industries that touch cargill. but certainly others as well. and we think a comprehensive immigration reform that deals with employment, eligibility,

verification tools so we can know that we're hiring people who are not the of identity theft, having safe harbor for employers, we think having improved visa program for the times, we have run into significant labor shortages particularly in regions of the country as well as improved earn status for these people will benefit all of us. we believe it will benefit the economy as well. >> your plants have been raided and you don't -- you might not even know what's going on but you're libel for the people that are working there that are here illegal hi. and it may have someone else's identity. and you have to pay the price for that. >> we do. and not simply in the cost of the fines and the disruption but we spend a significant amount of money training people. we want the legal work force. we use all of the tools that are available to us and what we're asking for in this immigration reform are tools that can be more reliable and precise to

ensure when we hire a person and invest in their training they can remain with us and continue to do the work that is so important. >> so we need to do in your view, comprehensive reform, either now or if we don't do it now we have to do it later. >> we are. the jobs are the magnate. whatever we do, clearly border enforcement is important but people are coming here for jobs so we need to have an employment eligibility verification prom that is reliable. and absence of that it's hard to believe that we won't be having the same discussion again in three or five years from now. >> greg, you're the third largest u.s. meatpacker too and you ship food all around the world. >> we do. >> we should do smithfield, china, we can't buy anything there. is that okay? >> i don't think it's fair to say we can't buy anything over there. cargill has more than 10,000 employees in china in many parts of agriculture.

clearly we would like to have more freedom to invest in china. i think in the long term the further integration of agriculture between china and the u.s. can benefit both parties. i think it needs to be well governed on both sides but i think the opportunity is net-net a positive one for american agriculture. >> greg, there has been some claim this is is going to be a back doorway for the chinese to get their food into our supply. do you have concerns about that? >> no, i think that we have good enforcement policies in the u.s. about the products that will come and reach our consumers. i really think today if you just look at the hard economics and since we participate in animal agriculture in both countries, we have a good sense for comparative advantage between the nations and i think that today comparative advantage resides strongly with the u.s. side. >> are you in a better year this year than last year in terms of revenue and net income? >> yes. we closed out our fiscal year,

we don't have the final results yet but may 31 is the end of our fiscal year. we expect to report sometime in august a dramatic improvement in results versus fiscal year 2012. >> and how would you characterize business and you know, that we're all trying to figure it out, the fed is trying to figure it out. is it a lot better than it was? >> i don't think that's really the case. i think our execution has been better. given that we're a diverse company i almost always answer that saying it's uneven. and we have businesses that are doing extremely well. i would have said the food sector in europe western europe has been more resilient than i would have expected. i think people in asia and southeast asia's attention to their diets compared to prior economic slow periods, people have really defended their diets so on many of the areas that are most important to cargill we would have said demand is solid but certainly not improving at the pace we saw two or three

years ago. >> we don't have you on enough. the important -- i think amazing you are still private and that you choose to do that the way. if you ever back in new york we hope you come out and see us on set. >> look forward to doing that. thank you. >> like private companies? >> yes. we have to go back billions and billions. >> and they don't have to tell what you the numbers are. better way to live. back to becky in las vegas. >> guys, thank you. when we come back we'll talk big data trends and the turn around at hp with general manager colin mahoney. and later we'll be joined by hewlett-packard's meg whitman. [ male announcer ] i've seen incredible things. otherworldly things. but there are some things i've never seen before. this ge jet engine can understand 5,000 data samples per second. which is good for business. because planes use less fuel,

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big data, it's quickly becoming a topic mentioned almost daily by guests from many walks of life. our next guest knows it well.

colin mahony is the general manager of hp vertica. >> good to be here. >> we talk about big data. i think it's hard to get your head around if it you're not in the industry and figure out how much is out there, how big it is. can you give us some metrics. >> one of the things i remind people of the you think back to your first hard drive. mine was in the early 80s. it had 20 megabytes. i thought wow, for the rest of my life i'm going to store every piece of information on this hard drive about this big. i couldn't fathom what a giga bite was. >> i still can't. >> but a giga byte would have cost a million dollars. here we are today many houses have terra bytes. which is a million times more than a mega byte. so you think about the size and volumes of data, from the history of mankind up to 2003, we are now generating equal

amounts every two days. we think about all of these strange numbers. we can't understand what it is. >> it's a lot. >> a lot. >> and when you start thinking about some of this stuff, some is kind of probably silly stuff. i read it was like 400 million tweets a day. we're responsible for some of that. a lot is important data for big companies and they need to figure out what to do with it. >> that's right. whether you're in the health care industry and the data is about patients and allergic reactions they have to drugs or you are a telecommunications company and somebody picks up the phone you want your network to work. one of the thing we take for granted all of these technologies, whether mobile devices or smaller sensor devices they are generating incredible amounts of information to make sure that help is delivered appropriately, to make sure the networks work. sometimes we take it for granted. what happens behind even something small can turn into something big. >> like what?

>> if you think about the typical phone call, a mobile phone call. they are from 200 to 1,000 pieces of information being collected just about the network performance of that call. just so you get 5 bars on your phone and you can communicate, so much information that if you looked at wouldn't make any sense to you or me. is being generated to help ensure that the quality of that call service is actually happening. >> talk about what you're doing with some customers. there is a lot of information i get the sense has been collected. now you can do stuff with it. nascar is one of your customers. >> nascar. what people want to do, i refer to information as black sand. what you want, though, is the gold. so customers like nascar, like united, these are customers that have huge amounts of information, they care a lot about real time, and it's not just machine information in the context of nascar, it's really about social fan information, about how people are perceiving

the experience. >> what do they do with it? >> what they do is they have in their data center in real time taking tweets, social sentiment and making sure that they are communicating to fans, that the quality of the service, the experience they provide, is exactly what they want to deliver. >> and they change their behavior. >> they can change their behavior. that's another thing that information is changing. how businesses can actually take this information and then act on it. how they can make it matter. that is what we refer to as this new style of it because it happens so quick and organizations are shifting based on the information. >> colin, it's a lot of info. we'll have to come back to you to talk more about this. but we appreciate you joining us. dh thank you. >> colin mahony. we have venture capitalist and tech guru mark andreessen. and hp, which of course he is a board member here. also later in the program we

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"squawk box" is live in las vegas. >> heads. >> sorry, it's tails. >> becky is in sin city for hp's discover conference with special guests. >> mark andreessen behind dozens of disrupters. >> then a live interview with hp ceo meg whitman to talk tech, corporate governance and the future of hewlett-packard. ♪ >> the third hour of "squawk box" begins right now. ♪ welcome back. "squawk box" here on cnbc. i'm joe kernen along with andrew ross sorkin of "squawk box" fame of new york times, deal book,

too big to fail. >> what's gotten into you? >> i don't know. >> thank you. >> you're welcome. >> nice to be with you. >> we're going to get back to becky in las vegas in a minute. first, though, we have to -- we have a deal to tell you about. apollo tires is buying what? is that true? cooper tire and rubber. this company has been around for a long time, for $35 a share. it's arnold palmer was one of the spokesmen. surprised, it's only $2.5 billion company at this point. a nice premium. $2.5 billion. boy. now i feel bad mentioning deal book since you had no idea about this. >> thanks. >> i didn't plan that. who broke this? did it just come out? >> i think we broke it here on "squawk box." along with the company and the press release. >> who's going to know. we broke it here.

checking u.s. equity futures bouncing back from a ragged session yesterday. let's wait and see if we can get -- >> get over 100. >> we were over 100. >> we started about 70 this morning. yesterday there was a lot of stuff happening globally in small markets but just sort of kind of a feeling of i don't know, of dread. not dread but -- >> david west on the front page. >> what is it about wesle. >> i don't know. that's like the big guns. wesle comes out there is something in the water. >> you know all of the players. so, if wesle writes something front page on global we need to sit up and take notice. >> david has been this a long time. wrote the book about bernanke. >> he is bearded like the bearded one. >> like bernanke with glasses. >> we used to have him on a lot. what happened? >> i don't know what happened. i don't know.

we've been monitoring the unrest in turkey this morning and riot police raid add protest camp after days of protests police moved into taksim square with tear gas and water canons. istanbul's market relies on foreign investors, down about 15%. but do look at this live picture from is san bull at this hour. things are much more stable this morning. we had richard engle on in the 7:00 hour and he did suggest that things seem to have stabilized at least for now. we'll see if there are additional protests later this afternoon. and bring them to you as developments warrant. also we have a potential takeover deal this morning overseas that could have implications. the uk's vodaphone, a possible takeover. that's fueling speculation that vodaphone might be more willing to sell its 45% stake in verizon wireless to verizon and it's something that a lot of

investors are going to pay attention to. back to becky quick who is live in las vegas at the hp discover conference. becky quick. good morning. >> andrew, thank you. we are joined this morning by a legendary tech investor and inventor, marc andreessen. marc, thank you for joining us this morning. >> thanks for having me. >> it's early in vegas. we were talking how this is the magic hour. two types of people. >> our friend howard says this is when the late achievers go to bed and the early achievers go jogging. the one time they intersect. >> it's an interesting time of the morning. we are here because of hp discover. and i was reading the cover story from forbes which has your take and a lot of people's take on meg whitman. i was blown away by some of the things. you said that she is the best ceo the company has had since its founders. why do you say that? >> it's such -- the founders are so important to this company.

the founders, hp had two founders. bill and dave ran the company for 50 years. and the company made tremendous progress. dave packard was last ceo in 1993. the company made progress over the next 20 years. but meg is the world class ceo that i think this company deserves. after a long period of change. >> a long period of change and period of turmoil. she was on the board with you when things started going awry. >> yes. >> with the last ceo. you looked at her and thought she would abperfect ceo. she didn't want the job. >> yeah. i didn't imagine when we recruited her, it was never a thought she would be available. >> she was never doing this. >> she had ruled herself out. we knew we had to make a change and so as we got into it deeper and deeper she started i would say intellectually intrigued. at a certain point she got emotionally intrigued. >> she is worth like $1.9

billion or something. how do you convince somebody to get back in the game? >> you can't. they have to convince themselves. she has the a convince herself. so there was a specific -- i had six hours. you have to get them in a captive zone where they can't walk away from the discussion. i had her on a plane for six hours from the east coast during that critical period and i and a couple directors sat with her. halfway through she got the twinkle in her eye. >> what was the magic moment? what was the conversation that kind of took place when she got that? >> she said well, let's say purely hypothetical ukly if i were to do it what would the plan be. and i was like okay, we got her. now it's a matter -- now it's don't script the close. >> what actually is happening? what are some of the changes you think she's brought to the company because she's talked about a long term plan, five-year turn around. you're 18 months in. >> she articulated the time frame and the plan so she laid out right from the start for the employees and the customers and

the shareholders the 5-year plan and she blocked it out year by year. look, i call this the great american turnaround. this is the full turnaround you read about, it becomes the subject of books and legends so she laid out the sequence of events. she has been tracking exactly against that, gives the company, shareholders updates against that. in the company she made changes, morale is way up, excitement leveling are way up. you see it in this conference, you'll see it all day with the customers with a new level of enthusiasm. >> how does it trickle back? >> i talk to customers all the time. we have a lot of customers come through our office. we do corporate briefings at our office. i see the customers actually outside of hp a lot. i talk to a lot of employees. >> what are a couple of examples or like a concrete used to happen this way, now this way. >> so, a big thing is team dynamic. hp had become a company -- 400,000 employees like these

companies become nation states and you get like princes and you get all of these sort of power struggles. she's brought a team dynamic into place. the senior leadership level, she has brought in. she has been emphasizing products more, emphasis on moon shot. she has more stuff out of the labs, more under development. i think hp has more new products under development than it has at any point. and then she put tremendous evident into face time with customers. so much of this business is an assurance, a confidence business and she put a huge amount of evident and gotten a lot of results. >> she has a lot of results on the earnings too. a couple of weeks ago it was a much better number than the street had been expecting. wall street was thrilled. it's a long battle because you have to turn around profitability on a lot of these, you have to get to the point you are growing revenue again too. >> sure. >> how confident are you here

out? >> i'm confident but that said it's not cording to strategy. these don't happen overnight. it's a process. she's identified the plan, she is working the plan, performing against the plan so it's going very well so far. >> talk about some broader things in technology. you are somebody who has your fingers in a lot of different projects, and you have invested in companies. i think two years ago the only firm that held stock in all four of the highest valued privately held social media companies, facebook, twitter, grew upon and zynga. facebook and twitter, great. groupon and zynga. is it something that you think has a long term life? >> we sold our positions in groupon and zynga once they went

public. i think both companies have a tremendous amount of potential. i think it could be argued both went public prematurely. i talked at length, it's a harsh environment to be a public company. you have to be ready for a tremendous amount of scrutiny, pressure. i think both companies frankly my view is could have benefitted from a longer time as private companies. but they have enormous customer bases, ta hented development teams operating against big markets. >> groupon, that's an entire business model that a lots of people have questions about no matter which company. >> i always thought this was one of the things, i thought people misunderstood groupon. so the premise from the very start was that online advertising like google and facebook is well suited for 0 online businesses. if you have a website google advertising is great. most businesses of the world are not online action they are offline businesses. they have stores or send people

to your house. the whole nine yards. yoga studios, all that stuff. most of the world businesses that are offline there has not been an effective way to market on line and groupon was the first company to figure out a model to do mass online marketing for offline businesses. that remains a very big market opportunity. that in many ways is the big on line opportunity. >> i want to talk to you about more of these. do you mind if we stick in a commercial break. we are continuing this conversation with marc andreessen. we'll come back after a quick break. back to andrew. >> thank you, beck. we'll get much more from marc in a moment. 8:30 eastern we have the squawk ceo call in session, meg whitman is going to join becky. we'll talk about the future of the company and more. check out the "squawk box" market indicator.

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welcome back to "squawk box." futures indicated up.

about 90 points right now. and making headlines, this is ha we should have been able to dedeuce andrews, apolo tires buying cooper tire for $35 a share all cast $2.5 billion. >> it's spelled with a y, tyres. not a mistake which youa assume which happens but in this case it's an indian tire maker with the revenue. let me tell you. 121.5 billion rupees. but not worth as much as they used to be. how much is that u.s.? 2$2.5 billion. there it is. >> this is almost a merger of equals. >> almost. that's revenue. 2.5. >> different story. >> around since 1976 when it was

registered. most 59% of the revenues from india. it sells 28% in europe and africa and it's built plants, it's got four manufacturing units in india, one in south africa, two in zimbabwe and one in the netherlands, the 15th biggest tyre manufacturer once they get to ten this is helping it get to -- wants to get to 6 billion. buying cooper tire. and i don't think we have a problem with an indian company buying a tire manufacturer. it's different than pork. >> a mark guy. >> back to becky quick at the hp conference. talk more with marc andreessen. >> thank you, joe. again, we are back at hp discover, legendary investor and inventor marc andreessen. marc, i know you must have thoughts about what's happening

with the nsa, the prism program that we heard so much of and heard some pretty strong denials from larry page of google, mark zuckerberg at facebook. you haven't talked to anybody about this or written about this correct? >> right. >> i don't have any idea what you think. why don't you let us know. >> it's been frustrating to follow this. we don't have many facts. we have fishl reporting that in retrospect i think has turned out to be sloppy and shoddy. the post themselves walking back, modifying the story and back off the claims. other reporters, claire miller at the new york times, stephan mccullough at c net have done news stories. they are consistent with all of the statements that the companies are making. the company statements are completely consistent. you got executives, ceos, who are adamant. >> when i read the statement there is is no way this can be real because there is no way these guys would stick their necks out.

>>. mark zuckerberg yesterday he was adamant on this. interesting the director of national intelligence came up with a statement also consistent with the companies, consistent with "the new york times." >> which they did not do with the story about verizon and the call centers. >> right. as far as we can tell the prism, the original prism stories are false, just bad, basically bad understanding of technology. >> the prism stories, the original ones from "the washington post" and the guardian, basically made it sound as if the nsa was able to tap right into a lot of technology company servers and get access and track everything through e-mail, facebook, wherever. >> american citizens and not american citizens direct access, no court order, these sweeping claims. there is no evidence to support that. there are no facts to support that. provided by a leaker, there are questions around the leaker. we continue know much about

snowden. we don't know much. the thing so frustrating this sort of issue of technology in our society and the internet in our society is a central issuesh and to talk about it you have to -- people have to understand the technology, have to be willing to understand the technology and the original reporting did not understand the technology. talk about almost like magic servers. if you get to the servers you get everything. these companies run thousands. there is no single server. if you tread stories there was this magic golden ticket. that's not how this works. there is a pattern with the court orders, going to the government to try to get permission to talk more about the court orders and about the process and explain this thing. the original reporting was so sloppy it's basically left i think a misimpression in people's minds. >> people will say yeah, okay, you can parse this, this is legalease, somebody playing with the words.

what a lot of people want to know is the thought process behind that. you're saying more than that. this is not just legalease. you're saying the overall thrust was wrong too. >> it appears. the post itself has modified its story. there's tech waters on line. because they are not acknowledging that they are changing it. it's like it's dropping the memory hole, pulling claims back. so the post doesn't seem confident in their story anymore. they are unclear about what they believe or don't believe. and let's be clear, they and the guardian are the only two newspapers who thought that prism was this thing. every other piece of independent reporting like i said claire miller, technology reporters who understand the technology have come out and said that's not what this is and they have excellent sourcing. i think the facts, there are few facts, the understanding of the facts is very poor, the discussion has gone sideways. these issue uses are too important to get confused. it's important people know what

they are talking about. >> andrew has a question for you. >> good to see you. i agree with you, and let's stipulate right now that prism doesn't ape lou people directly into the servers of these companies. having said that and i think there was a misreading or i don't know if it was a misreading of the slides so much as the slides may themselves overstated the case and then the journalist reported on it. but when you look at what's called section 702 of this statute of the foreign intelligence surveillance act, there is a question about how broad the requests are and how automated the requests are, meaning if i'm the u.s. government, nsa, can i go to google or facebook in a very almost automated way, send my query saying i need joe smith's e-mail traffic for the last three months, maybe i don't get direct access but it goes to an analyst and maybe close to

automated. some made that case. then gets put back on a server and prism is almost an interface to be able to read that. is that how you're looking at this? >> so this is the thing. i don't want to speculate because without facts it's meaningless speculation. what's been known for a long time there is a secret, basically, a secret court order, the government can get secret court orders, require american companies to turn over information. the companies have the ability to challenge the orders and have done so. the companies can't talk about the orders so the people who know about this can't come on tv and talk about it. but that was all known. there was nothing new in that. this has been an active debate for years. so there's nothing that we in theory learned from the whistle-blower that holds up. that is new or different that i can tell. anything else was speculation. it is interesting that several of the companies are now asking the government for permission to actually explain more of this

and talk about the orders and you know, the dni it's signature that the dni came out with this big explanation. it will be interesting to see in the next weeks whether there is more information but i think we have to have people know what they are talking about. >> were you surprised about the news around verizon. this is distinction between google and facebook and then the verizon news that they were providing the meta data. >> i don't know. i'm not a telecom expert so i don't know. i would say the confusion around prism for me throws the entire concept of the whistle-blower into question. so in the tech industry we love high school drop-outs like they traded some of our best companies. like maybe this is the guy who can explain this stuff to us. i would feel better if he wasn't in hong kong of all places. like the whole thing is just odd. the thing is odd from start to finish.

the fact that prism has been so misinterpreted i'm reserving judgment on everything. i don't know that we know what we know on these topics. >> switching subjects a little bit, i want to talk to you about google glass and the glass collective. i read your blog and cracked me up. you were tinkled pink which was not a phrase i expected coming from you. but you were tinkled pink because you think this is a huge innovation, encouraging people to develop applications and go along with some of these things. what is it that you think that is so refb lugsary about google glass? >> i think we have the opportunity to it's this concept of sort of embedded or wearable computing. we have the opportunity to take the best of what all of these have to offer and make them a much more personal part of our lives, they are always with us. it's emasculating to have to look at a screen maybe that's

not the word i would use. i like my part is phone but having the internet, see where the internet in your field of vision, then also the other thing with glasses be able to talk to it and it talks back to you. it basically wraps you in all of the information you would ever need all the time. i think people are going to find they are going to feel basically naked and holonely when they dot have this. >> do you have yours? >> yes. it draws too much attention. you get way too -- if you want to make friend like driving a 67 corvette. a great way to talk to them on the street. >> or you need google contacts. >> i've been telling people i'm beta testing google contacts. >> joe has a question for you. >> while we're getting toward the end of this, marc, before i buy a 100-year ibm bond, do you

put any stock in the singularity in 2045. is there any way that those dots could be connected positively to where something like that is possible before i croak? >> this is where the computers become smarter than us. where they are artificial intelligence. >> i want to plug into a grid where my brain, since computers are a billion times smarter, any way you could -- is it science fiction or can i have 1% hope that i don't die. >> i think 1%. the moral of the story is healthy living today, the option value on 30 years from now. >> good. i'm going to keep my waist thin and hope for the best. >> take the vitamins. >> all right. >> we want to thank you for

joining us today. it's a pleasure talking to you and we hope to see you soon. >> thank you. >> will you bring your google glasses? >> sure. >> thank you, marc. >> coming up another big interview with becky from sin city, meg whitman will join us next. we're cracking down on medicare fraud.

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welcome back to "squawk box." up about 89 points getting back some of the red that we saw yesterday. in the news dow component pfizer will receive $2 billion from teva and sun. the payment will settle a patent case involving generic versions of pfizer's acid reflux drug which i once took. i did. take it for a week and everything was gone. the gerd. you think it's your heart. it's not. it's gastro something reflux. i think the purple pill where the stomach dances around. chip maker rambus settled a case that will pay $240 million, the dispute over memory chip technology.

and lennar on the rise after upgrading the stock to outperform. the toll brothers on. the firm will benefit from the housing rebound and has advantages over rivals in its land holdings. that gives an advantage. and shares of goodyear tire are rising after the news that cooper tire and rubber has been bought by india's apollo tyres around the world internationally tyres is spelled with a "y." the deal, they sell most tires in india but they sell some in europe. and the revenue about 121 billion rupies. >> back to becky quick live in sin city though she is not sinning at the conference. becky has a special guest. >> we don't know that. you know becky. >> not at the moment i'm

no. guys, thank you very much. joining us now is the woman we've been waiting for all morning, meg whitman, hp's ceo and why we are here. we want to thank you for inviting us here and giving us the chance to sit down with you. >> thank you for coming to hp discover. >> we are coming at a really interesting time for hp. you had a great quarter that you announced last month. wall street loved all of the results out there. your earnings came in much higher than the street had been expecting. and the stock was up pretty significantly on that. but this is a long turn around that you've been talking about. and while you may be ahead of where the street thought you would be right now, where are you just in terms of where you thought you would be right now in this process? >> well, as we laid out, this is going to be a five-year turnaround to get hp running like it should for a company of this iconic status. as i said you don't have to wait five years for results. i would say we're a bit ahead where we thought we would be. we're about 18 months into this

five-year turnaround and about where we have to be. we got a long way to go, there is a lot of heavy lifting ahead. >> the numbers bought you street kred and more patience from investors wondering. but there are bears on the street and their take on this is that the stock is up about 100% from november, and the company's done some great things when it comings to cash flow but a lot off what they think are non-recurring items. you may not be able to repeat, receivables, what do you say to them? >> well, in a turnaround you have to do step 1, step 2, step 3. we accomplished a lot. i think there is more work we can do in terms of our cash conversion cycle, looking more carefully. >> you're at 21 days. >> versus 29 before. >> exactly. >> part of that of course is business mix. our pc business has a negative cash conversion cycle so it will depend on the mix.

this's more we can do. really, the next phase of the turnaround is how do we get revenue growing. and that is where we really have to now put the focus. you can see at discover we're going to get rev moo going based on great products, great services and great software. i think-is the strongest lineup hp has had. the veterans around say this is the strongest lineup hp may have had in 20 years. >> when do you exsnaekt growth? i know you don't want to get pinned down. you hook at the lines you have now is that something that comes i guess your fiscal year ends in october. is that something that comes after that. >> we think growth is possible in 2014, i think the biggest wild card is what happens to the pc market as a whole. we define that as personal systems, but the vast majority of our personal systems are pcs and so i think that will largely depend on the market. but we remain pretty confident. as i said this is all about the proed lineup t software, the

services lineup, and then you know, going and selling solutions for what i call the new style of i.t., because everything is changing in i.t. >> pc sales, the industry has gotten hit hard. i think this year sales down the biggest since they started keeping records. >> right. >> how do you -- is this an industry that is disappearing or really think that you can -- >> it depends on your business definition. i like to think about this as personal systems or devices. the need to create, to consume, to share, is exploding because data is exploding. there sor many more things you can do. it turns out those devices are becoming multi-foreign factor, multiarchitecture in terms of the chips in the devices. so the good news is the business is growing, it's just the pc segment is declining. we'll see how long that continues. there's 140 million 4-year-old or more lap tops on the market

place. windows xp, this is no more support next year. so i don't think it will continue the precipitous trajectory it has been on but we've got to get ability, get to other operating systems all of the things that you've seen in the booth. >> one of the things you said yesterday at your keynote speech part of what you have to convince people is you're here for the long haul. so there is no way you're changing our mind on what's happening with pcs, this is a business you are in to stay in? >> this is a business that we are in. what our customers are looking for from us is consistency of leadership, of strategy, and a partner that they can rely on. i'll take cloud for an example which is revolutionizing our industry and how technology is bought, consumed, how it's paid for. our cloud strategy is the cloud that enterprises can rely on. that rely on factor is incredibly important. >> customers have been through a

lot of twists and turns it over the last decade or so. marc andreessen was talking to us and says he thinks you are the best ceo for hp since the founders of the company. he said he had to do convincing to get you to take this job. obviously you don't need the money. why did you take the job? >> you're right, i said many times after i left ebay that was my last ceo job. but i was on the board at hp when the company ran into another chapter and some of the challenges. >> i had started to really in some ways fall in love with this company. it matters what happens to hp, to our industry, it matters to our customers. i have met over 500 customers in the last 11 months sor so. and everyone says we want hp to win. and it matters to them and the solutions they made, investments in technology over the years and they want us to win in an

industry characterized increasingly by consolidation, by change. so, that's why i took the job because it matters. >> you could talk about how you see the change happening. marc told us he hears about it from customers and employees. let's talk about how you are trying to change things with examples. when you took over as ceo there was a contract that came up, microsoft's bing was looking for a new purchase of servers and you were going up against dell. you lost that bid. so what did you do? >> so, i wanted to find out why. so i called steve bonner and said put me in touch with the person at microsoft who made this decision and at this particular time chapter and verse what we could have done better. so i spent about 45 minutes on the phone with the decision maker to understand why we lost. and then got our teams together and went through and said what are we going to do. how do we reorganization ourselves. change the supply chain. how do we participate in a way

we win. >> this was april last year when you lost that bid. what did they say, why did you lose? >> time to market, the ability to iter rate in the rfp process. >> what does that mean? >> so in the old days a company would put out an rpf. sorry. a request for proposal. and you would just answer it. >> here's what we can provide. >> but the way these big hyper scale deals are is they have more, they solicit from folks, hey, what can you do for us. then incorporate that into the next one. and then you have to respond again. then you incorporate that into the next one. then come up with ideas that help the customer real time. >> how long was it taking h, >> too long and we were just answering the request for proposal as opposed to adding our innovation ideas along the way. >> saying here's things you may not have thought of. >> but if you consider these

three it will reduce your cost or increase how effectively your app runs. >> dell was doing some of those. you went up for another bid in january i think of this year. this was, again, the same situation, bing is looking for servers, what happened? >> we won. >> and because we got our team together. and what i have come to learn about hp people. you get the right people in the room, focused on an objective no one does better. we have the best engineers in the city. part of the dna of this company is engineering, product drifben. all the way back to the founders so. we reassembled the team be, set them off in a direction which was, we've got to do things differently and the results worked out. >> it wasn't just offering the lowest bid. >> no. you do have to be price competitive but it's time to market. how you respond, it's the innovation ideas you bring, the

service you're going to provide so it's a whole package of things. it's a very competitive world. we'll win some, lose some. we sort of learned a new skill how to do after this in a more aggressive way. >> inyou'll stick with us we'll take a quick commercial break. andrew, over to you. >> thank you. great interview. coming up we've got more of that plus mark zuckerberg. what he said about the social network strategy. a look at movers in the stock market. we have green arrows. out there owning it. the ones getting involved and staying engaged. they're not afraid to question the path they're on. because the one question they never want to ask is "how did i end up here?" i started schwab for those people.

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welcome back everybody. we are live in las vegas at hp discover. we have more from meg whitman, the ceo of hp. talking about this turnaround. for part of the plan you've been trying to figure out where to cut and where to reinvest. we talk about washington all the time, the situation with the sequester has been an ugly situation of 10% across the top. we make the point all the time no business leader would walk in and do something like that. >> right. >> so, i know you have 330,000

employees, looking to trim 29,000 by the end of the year. but you've got to be thinking all of the time where you cut and where you invest. >> sure. we'll reduce the work force by 29,000 over a three-year period. we're about halfway done on that. yeah, listen, we have to figure out and we have figureded out what is the strategy for hewlett-packard. it's about providing solutions for the new style of i.t. so start with strategy, then say what are the most important things that will help execute that strategy. first is product, services, software. so -- >> what is the new i.t.? >> in the old world it would take years to develop applications and you would update them once a year or longer. you have to, when i started with ebay we had a fully dedicated data center which we had to build for the holiday season. so we had to build the church for easter sunday, the bad news was the data center had about a

17% utilization year-round. >> and nobody showed up. >> exactly. you don't have to do that. the way technology is bought, the way it's consumed or paid for is completely changing and it's changing fast. it's characterized by cloud, by mobility, no one accesses technology in the old style. in the old days your data base administrator needed to sit in your operations center. today they can access what's going on in your data center by a remote device, by a tablet. that's what we call the new style of i.t., for the enterprise and most medium size businesses they haveget from where they are to where they want to be because technology has become a real competitive weapon. in the old days it was all about how you could make your operations more efficient. now what our technologyists are seeing and what i see at our customers i.t. needs to drive revenue and be a competitive advantage. that's what i call the new style

of i.t. >> andrew has a question. >> i wanted to ask you about one of your competitors. carl icahn is trying to block the dell deal, the sale to michael dell. understanding the industry and the landscape the way you do, is michael dell paying too much or too little? >> so you know, i can't really comment on dell. listen, we are focused on having hp win serving our customers the best we know how and outwit our competitors. but i think i'll leave dell's situation and the commentary to them. >> one of the things you said is that when you came in you were amazed by what you found in the labs and the research and development. what is the one thing you were most astounded to find when you walked in? >> what was so interesting is despite all of the ceo turn and the drama at the top of this company, engineers, the scientists kept inventing. so they didn't know what to do with it all because they weren't

sure what the direction of the company was. so i went around with some of my senior leadership team and we found some amazing things like store once, like moon shot, software define networking, next generation pcs so what we've got to do is commercialize this much faster. and back to your question how we decided what to invest in. rnd is important so we did increase but narrowed the scope. one of the things that is fantastic about hp we never met a science experiment we didn't like. when you let 1,000 flowers bloom you have to weed the garden. we focused around the priority areas so we're getting more bang for the buck around r and d, but we focused. and boy, it is so much fun to watch our engineers. it's creative. it is incredibly creative.

one fantastic engineer is worth 100 average ones so it's that stroke of brilliance that hp is known for that exists at this company. >> we've seen a lot of those around us today including moon shot behind us. we'll check out more. we want to thank you for your time today. >> thank you very much. >> hope to talk to you soon. >> thank you. >> thank you very much. that does it for meg whitman but we have much more to come. we'll be back after a quick break. my mantra? trust your instincts to make the call. to treat my low testosterone, my doctor and i went with axiron, the only underarm low t treatment. axiron can restore t levels to normal in about 2 weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especially those who are or who may become pregnant and children should avoid contact where axiron is applied

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. >> welcome back to "squawk box" and down on the new york stock exchange, and jim cramer. >> i love that hp interview, and meg really explained it and this company is back. >> are you a buyer? >> as far as a dow stock, yeah. she is laying out the five-year plan and ahead of the five-year plan, and remarkable in that difficult business. i like everything that she says. >> and so here's the -- explain this to me, because i have heard your views on dell and you believe that dell is going to exact opposite direction and how do you square that? >> well, it is a balance sheet issue and you need to offer terms to the big enterprise customers that make it so they want to deal with you versus the other guy. i don't know how dell can offer good terms with that lever balance sheet. meantime, meg whitman did the first-year turn around by fixing the balance sheet. brilliant strategy and she can

come after dell. she talked about dell cratering its business, and i have to tell you that this is one where one dog is eating the other, and it is hewlett packard going to come after dell big time. >> jim, what do you make of the front page article of the "wall street journal" of the inflection point of the "usa today" peace talking about it on the cover two weeks ago? >> well, the global tumult grips market is d.a. probes rackets, and yeah, it has been there everyday. how about the fact that "the new york times", and you see their lead story? interest rates going higher. we have it, and i love peter, and i have worked with him for many years and the interest rates are rising and they are going up dramt clishgs and these stories are what you get after the beginning of something very big, and nott ta at the beginn. look, i like journalism, and

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"stock of the day" cooper tire and rubber being acquired by apollo tires for $35 a share. we are about $21.5 billion rupees. "squawk on the street" coming up next. ♪ i look extra fly for the day i die ♪ ♪ i'm going to touch the sky good morning. kayne west says he is going to be the next steve jobs. >> i was waiting to know who it would be, and now i know. >> welcome the "squawk on the street," i'm carl quintanilla and david fab earer on the new york stock exchange streets.