>> i liked it. >> congratulations to our tape producer. i think brian might have had something to do with it. we'll hear from the lead actress in "taylor schilling." but kevin o'leary joins us, investor on "shark tank" and here, as always, kayla tausche, jon fortt live outside that microsoft event in new york city. guys, good morning to all of you. jon, let's begin with you. that di that nadilla in the building. >> that's right. the new ceo is here, which lends this event that much more cache. look, there are people out there saying it's a horrible time for microsoft to launch a new surface. growth in the tablet market is tapping out. listen, it's a worse time for microsoft to leave the old surface on the market without updating it. they've got to gain share here. they've got devices and services strategy. there's a range of what they're expecting. maybe a smaller tablet. those tend to be selling a bit better with lower price points,

and maybe a larger tablet, as well, on the pro end, trying to get more enterprises to adopt this tablet lifestyle. two-in-one devices, tablets with keyboards that act like laptops are increasingly popular as part of the mix here. it will be very interesting to see what this new microsoft under nudella does strategy wise. do they push the services portion of their strategy? he's said they're cloud first, and we'll see how that plays out today. i'm hearing from within microsoft this is just one event in what will be a big summer for them, which they expect to shift the way people think about microsoft. we started getting that with the office for ipad announcement, expect to hear more about office here today, and then more announcements throughout the summer, guys. >> all right, jon, thank you very much. let's listen in. >> i want to talk about our devices today, but i want to

start by talking about the journey we've been on. you heard me talk about our mobile first, cloud first strategy. and this is our focus for every device in every service we launch at microsoft. and over the last couple of months, you've seen us talk about various aspects of this strategy. we started off by talking about how our cloud enables everyone on every device. this is what we did when we launched office 365 and office apps on the ipad. we also talked at that event about enterprise mobility suite which enables enterprise i.t. to enable access to corporate information on any device. we also had a major event around our data plata platform. this was is what we talked about ambient experiences and how one creates a data culture within an organization using the data

platforms. and then, lastly, at our build, the developer conference, we talked about the advances in windows and our azor platform on the cloud. we talked how particular in windows we were advancing on every dimension from form factors, business models, to experiences for both people, i.t., and developers. and today is the next step on that journey. we want to talk about devices and hardware. but it starts for us with this obsession of empowering every individual and organization to do more and be more. that is what we at microsoft are all about. this is what is the unifying theme for the company across everything that we do. we want products and technologies that enable people to dream and get stuff done.

we want products and technologies that enable people to be able to get more out of every moment -- >> all right, satya nadella we expected to update the surface and surface pro. when we get head lines, we'll bring them to you. in the meantime, joined by kayla tausche, of course, and kevin o'leary joining us, talking about microsoft. i don't feel bad, kevin, asking you about microsoft, because they are a healthy yield. i know you like you'll. what do you make of what you're hearing out of them today? >> i am probably the ultimate customer they want to go after, because i'm agnostic platform, agnostic to price, willing to buy anything that makes me more productive. i knew we would do the segment, so i brought the devices i carry with me every day. because i work with financial services, i have to have a window platform. i choose the think pad. i would not use that to do a presentation. and i speak a lot at events. i use an apple for that.

>> you have a thinkpad. you have an i mac. >> for my productivity, when i can take only one device, i use the ipad. you would think they want to switch me to surface pro. when they switched office to ipad, that was a done deal. i now use powerpoint, excel, word, on the ipad. you know, i also have to carry an iphone and blackberry for e-mail. all five devices. >> now you're showing off. >> well, no, i would wish to carry less. this weighs a lot all this stuff. i need every device i just showed you. microsoft's challenge today is to convince me to dump two of these for a surface pro, and in order to do that, they have got to give me the apps i need and cut the weight in half. that thing is a pig-dog. it's too heavy. >> microsoft would also like you to carry less, i am sure of it. when you think about the buzz surrounding this event and all of the rumors about is it going to be a smaller surface, bigger surface, a slimmer laptop, is it starting to feel like the buzz that surrounds an apple event

where people have painstaking detail over the rumors? do you think just the buzz surrounding each microsoft event now has become a good thing for the company? >> i think it hopes. i mean, they hope, because they have a new leader and he's doing a great job in redirecting, refocusing. does it not worry to you this sounds consumer electricicy? that's challenging. if this doesn't take off right away, it will go into the boneyard of other devices. it's commodity. the tablets are a commodity. >> you are a victim to the apple ecosystem, right? if you were to switch hardware, you would separate yourself from that family of apple products that you're a fan of, right? >> well, you know, you're delving into something else. if you look at within both the apple ecosystem and what microsoft offers, i'd argue that some of their embedded technologies aren't as good as stand-alones. i'll give you an example. one note within microsoft, or one drive, you can find

evernote, which is a better product, if you look at the telecos, they use it a lot, and i can't find a way to make one drive work for me across the two operating systems, and i'm now given a license to dropbox. they're losing some license from me. i've got 23 companies i'm trying to standardize these technologies on. and, you know, i'm kind of agnostic. give me the best at the lowest price, i'm there. i'm not brand loyal. i'm a very bad man. >> well, from microsoft to apple, nine to five mac is reporting the new retail chief, angela aarons, has been meeting with employees and managers at apple stores. the plan includes ramping up in china, exploring more mobile payments and steve jobs' biographer walter isaacson predicting a new person for running the contint business. you must have thoughts as to how app sl performing on the retail front, kevin. >> i do. they've hilt it out of the box. i use it because my family uses

this as a resource. when my wife has trouble with her e-mail, she goes down to the apple store. that's how they're winning my dollars. i don't fight her on it, because it's a solution. they've provided hardware and software training. they're kicking it out of the park. >> you think if another company re-created that customer service model, they could win the business of someone like your wife's? you think that's replaceable? >> you know, she -- i don't know, because dell tried it, it didn't work. if you're too commodityized and you don't have enough ecosystem, i don't think it works. having said that, every retailer on earth -- by the way, retail numbers are all over the place -- envy the dollar per square foot margin that apple makes in those stores. there's nothing like it on earth. if they can continue that, and maintain some, you know, product development that i would keep going back for, that would be great. i'm kind of waiting to see what's next. by the way, i still don't have the new iphone. i'm using the old "s." i'm ready for something new. >> you're not a cutting-edge early adopter. you do take some time?

>> the way i look at it, carl, it costs me money to learn something new. if it's still working, which is why i still use this old -- i'm the only guy -- this is in the smithsonian, the only two people with this device. >> i have one that's even earlier than yours. >> it does one great thing. it's useless for the internet or apps. oh, my goodness. i can't believe i'm endorsing it, but i would never give this thing up, because nothing does as good a job with the e-mail. >> go pro going public. revealing plans to raise $100 million as part of an ipo, plans to trade on nasdaq under grpo. we got a look at the company's financials, posting $895 million in sales, profits of 60 million last year. some of the growth trajectories are giving some pause here, kevin. you know these guys well? >> i do. i've used the product. this should not go public, carl. this should be sold to a strategic. what it essentially is is a marketing company. it's taken a relatively standard

commodity technology that can you find within the sony ecosystem or anybody else, you know, they have great technology here, but they've done a better job marketing it. this is a mistake. investors -- it's a personal opinion. i would never buy this ipo. this baby's going south. >> well, that's interesting. they are also a content company. you say marketing, but they have a youtube channel. tons of streaming from users around the world. >> how do you monetize that stuff? it's a kid jumping off his roof. why is that valuable to anybody? >> they have ads on the youtube channel. that's not one of the big revenue streams. >> it is a nothing revenue stream practically. >> but it's been profitable since the very beginning, and it makes a real problem. kevin, you come up and criticize companies that have something in the cloud, or it's not something tactle you can hold in your hand. i've heard you criticize this company before, but it makes a profit from the get-go. >> you know with certainty there will be competitors in this space, that there's absolutely nothing proprietary about what

they do. what's great about this company, and i have to hand it to emthis, they created a brand. instead of going public on their own, offer is to a strategic, like a sony or somebody else that has the global distribution that can take this brand and go forward with it. do not take it public. this is screaming to be sold to a strategic. >> what about a company like kayak that went public in july 2012, just a couple of months later, sold to priceline? people said that company shouldn't go public. >> if your strategy is to squeeze the absolute last dollar by going public first, getting an ipo premium, if you get one, and then selling it to strategic, but i'm saying the long-term strategy should be sell to somebody else now that you've built this brand. because frankly, you know, making 20 million bucks, whatever it is, is flog. -- nothing. it's a pinkmple on a teenager. >> you don't think you're dating yourself? it's a story millennials understands and the rest of us don't? >> i have five go pros around my kitchen. >> why do you have them?

what extreme activity -- >> for the b.a.s.e. jumping you like to do? >> what i liked was doing the time-lapsed photography. because i'm a photographer. i love to mess around. >> you do like photography. >> frankly, there's great stuff that came out of sony recently, and i'm looking at that, too. other technology does the same thing. listen, i know i'm right on this. when we meet in a year it will be owned by strategic or a horrible ipo. >> i'm writing, i know i'm write on this one. >> i hate being right all the time. it's such a burden. >> kevin, great to see you. we'll see you soon. you like the music you hear on this show? now you can see what we're playing every day. look us up on spotify, use the name squawk alley, and we'll take your requests. we've gotten a few in the past 24 hours. use it @squawkalley and use #squawkdj. we have our eye on the microsoft event in new york city. we'll bring you the headlines as soon as it happens.

microsoft's senior evp will join us for a "deep dive" into the company's strategy later on. plus, the world's largest crowd-funding platform getting better. the ceo of indiegogo talks about $40 million in newfounding from names like sir richard branson, and talking to the owner of the orange is the new black, taylor schilling. we'll explain why she chose netflix. predicting the future is a pretty difficult thing to do. but, manufacturing in the united states means advanced technology. we learned that technology allows us to be craft oriented. no one's losing their job. there's no beer robot that has suddenly chased them out. the technology is actually creating new jobs.

siemens designed and built the right tools and resources to get the job done.

when bob iger was asked how long they could milk this, he said it's one of the top franchises, so maybe another five years or so. >> unbelievable. and that's not even counting what sequels may do. disney's already up another .5%, to 81.51, awfully close to a new high for today. the largest crowd-funding source, eindiegogo announcing nw investors, following the new financing round of $40 million. what is propelling the growth and how can it keep it up in a crowded crowd-funding market?

talking first on cnbc is indiegogo yslava ruben. and you know o'leary? >> i wouldn't say we're best friends yet. but definitely -- >> yet? >> absolutely. we're trying to find capital for entrepreneurs and we have an open platform. >> walk us through how the worlds have collided through "shark tank." ? >> in a very big deal. it launched in 2008. we have hundreds of thousands of different campaigns. one of those was a campaign called breathometer, and it will tell you the blood alcohol level. they went out to indiegogo, hit the target, have market validation, hundreds of funders. and we didn't know. they went on to "shark tank." it's the first time all the

sharks funded the same project. >> yeah, the ceo, got $1 million in about 90 minutes of presenting. that's never happened on "shark tank" before. his biggest problem now is fulfilling the demand insatiable for this product, and it's right on trend. states like massachusetts, florida, texas, california contemplating zero tolerance in alcohol for teenagers and young people. it's the right thing to do. >> would you say it's fair independent of his amazing presentation, the fact he had all this validation, took away a lot of the risk in terms of can he go to market? was that helpful? >> an investor like me needs a guy like you, because i want you to seed and sort through the ones with viability and don't. which is what you do. >> yeah. >> and after they go through your process and need the next million, come to me. so keep up your good work and i'll keep funding these guys. all i want to do is make money. i'm a capitalist. >> we're seeing quite the trend of campaigns getting funded on endy go go and institutional capital following it. and we're seeing $15 million in

misfit shine and now at best buy or the apple stores. there's a lot of different campaigns like this. >> how did you decide to go out and raise a new round of funding yourself? $40 million. no small feat. you didn't choose to do it on indiegogo? >> yeah, not yet. equity crowd funding could be interesting in the future. for us, raised $15 million a couple of years almost, and we continued to want to grow. there's a huge market opportunity out there, and for us, we wanted to accelerate that. what we're so proud of is announcing the amazing operators. we wanted experience. so people like sir richard branson, max with paypal and megan smith with google, and maynard web, who created ebay as we know it. >> wouldn't you be the platform first to bring out equity in the same way, if you could do mike row financings? s.e.c. regulations are allowing this to happen. i would expect you to be one of the participants. >> yeah, in april 2012, when the jobs act was signed by president obama, actually, we had a customer on stage with president obama.

we had the only customer from any platform. you know, because they were turned down by the local banks in upstate new york. but indiegogo said yes. president obama was trying to show we need more of this. we don't need tightening up of banks to give out loans. so we're leaning forward. we want to participate with profit. when we came out with the idea in 2008. but at the time, there was no jobs act, we just hoped. we believe perks and participation and getting the products in return, getting a donation, is really going to be growing rapidly. equity crowd funding will be interesting when it happens and the s.e.c. signs off. >> you talk about the institutional money that some of your people are getting in the second round. >> yeah. >> do you have a pop a certain amount of the microlevel before you get that attention? is it a function of that? >> i think it's a function of what kind of level institutional money you want. so if you're looking for $1 million or $2 million, it's okay to get 100,000 on indiegogo. if you're looking for 10, 15, 20 million, you probably need more than that. we see something like ihear, which is a technology for

hearing, you know, they needed just a couple hundred thousands on indiegogo and followed a $2.5 million equity investment. >> that's incredible. slava, we have breaking news. please come back. >> sounds great. >> slava joining us. we are getting breaking news, and it's on gm. we go to phil lebeau on the phone. hey, phil. >> carl, another -- a number of recalls to announce for general motors. this time, another 2.4 million vehicles are being recalled for a variety of safety-related issues. we should point out none of these issues have been linked with any fatalities, but what is noteworthy here is that general motors is also announcing it will take another $200 million charge this quarter to deal with safety-related recall issues. that means that general motors in total in the second quarter will be taking at least $400 million in charges related to recalls and year-to-date gm will have taken -- or will be

taking by the end of the second quarter $1.7 billion in safety-related recalls, charges. again, another 2.4 million vehicles recalled for safety-related issues. the total number of recalls this year, carl, 13.6 million. those are all from general motors. back to you. >> that's like an entire year of auto sales, almost, phil, in a bad year. but still. >> it is. and i haven't -- you know, we're getting to the point -- i don't mean to be flippant about this, we're getting to the point, it's hard to figure out if they are setting an all-time record. they have to be getting close. we've been trying to go back through the records in terms of how bad it was in terms of total recalls for toyota years ago, and on the acceleration, about 10.5 million v, but we're getti for automakers for recalls, it has to be getting close. >> now down a full percent, down to 33.89.

phil, thanks a lot. when we come back, we have our eye on the microsoft event in new york city. nadella was on stage, updating what we believe to be the new surface and surface pro. we'll get you headlines when we come back from a break. >> it's something that hasn't been done before in this size. it's a 21x60 by 1440 display. it's the same clear-type technology you've seen in surface pro 2. >> as you can see, the headlines are about to happen. we'll get you the detail when is we come back. the dow is down 40 points. is.... her long day on set starts with shoulder pain... ...and a choice take 6 tylenol in a day which is 2 aleve for... ...all day relief. hmm. [bell ring] "roll sound!" "action!"

starting to get some headlines here on the surface pro 3. 12 inches is going to be bigger than your surface pro 2. a little bit lighter than the mac book. obviously still in the market to replace the laptop, make it a substitute for the laptop as the headlines come in. we'll talk to jon fortt in a

moment. >> he's been tweeting that it's thin and light. if you want to follow @jonfortt, he'll have updates from the event. >> the lightness means a lot. if the operating system lets me be ubiquitous between a laptop -- for example, can i run my financial compliance software on that surface pro, the new version -- i would be inclined to swap out keypad-based laptop for it. the whole thing, carl, is the weight. you know? carrying all this stuff around, it's a killer. >> yeah. >> so apple's done a great job of making things like, but i don't like the ecosystem for financial services. maybe they have a winner here. >> it looks like it would be lighter than a 13-inch macbook air. >> okay, i'm interested. i'm interested. so bring it out. let me try it. >> yeah. believe me, you'll be getting your chance in the near future. we'll keep our eye on that. in the meantime, europe will close in about two and a half minutes. simon hobbs will wrap that up. >> stability is the name of the game looking across europe,

after the recent gyrations we've had. it's interesting that you still see the portugal and italian yields creeping slightly higher. the sell-off there from obviously a high level, some would argue. the real standout is greece. look at this figure here, up almost 5%. at the helm of that big move are a lot of the greek banks. we've had comment on particular, bank of america, merrill lynch suggesting the recent sell-off, a three-month chart here, down 22%, 23%. they see value there going in as a buy. that's also true of alpha bank, if we can just move on to that one. they also are suggesting that is a buy after the recent moves that we've had. london is underperforming. the retailers are an issue. vodafone, as well, came through. the heavyweight half the size of what it was, of course, because the deal -- the deal with verizon and the disbursement of the cash. they're now talking about $11 billion of asset writedowns in those difficult markets. $32 billion of network investments. so the operating outlook is poor for vodafone, and in addition to

that, of course, the realization that at&t may not be as interested in bidding ultimately now that they've got their hands full with directv. a quick check on where we are with credit suisse after last night. they announced the criminal indictment and $2.6 billion of fines. i think the real surprise to a lot of people is they haven't lost any licenses. more importantly, a lot of the people who were presumably attempting to cheat the irs by having swiss bank accounts will remain secret. for all all the swagger of eric holder, there is no force really to make those people's identities known to u.s. authorities. appear from the swiss cabinet, they were preparing emergency legislation to neuter the swiss bank secrecy laws in order to do that for the u.s. authorities, but that isn't the deal that holder has struck. so presumably, many people watching the television now are quite relieved. back to you guys. >> thank you, simon. interesting, too, the "wall street journal" talking about

how credit suisse struck a deal with swiss regulators that would have cost brady dugan his job. we're not seeing that, as well. he will remain at the helm. >> yes, because the local politicians are up in arms about the state of credit suisse, they don't have to open up the bank secrecy, he lives to fight another day. >> all right, thank you so much, simon. when we come back, orange is the new guest. we'll speak to taylor schilling, star of the hit show "orange is the new black" on netflix. plus, you got a lot of information on the surface 3. we'll be hearing from a microsoft executive later on this hour. just take a closer look. it works how you want to work. with a fidelity investment professional... or managing your investments on your own. helping you find new ways to plan for retirement. and save on taxes where you can.

so you can invest in the life that you want today. tap into the full power of your fidelity greenline. call or come in today for a free one-on-one review. ♪ [ male announcer ] since we began, mercedes-benz has pioneered many breakthroughs. ♪ breakthroughs in design... breakthroughs in safety... in engineering... and technology.

and now our latest creation breaks one more barrier. presenting the cla. starting at $29,900. ♪

facebook mid news yesterday after working on its competitor snapchat. what make it is so popular? jane wells spoke to a younger audience to find out. hi, jane. >> carl, prepare to feel old. mark zuckerberg turned 30 last week. that's, like, 80 in social media years. so how popular is snapchat, and is it worth competing against? we asked the people who should know, those who are about a decade younger than the facebook ceo. do you use snapchat? >> i use snapchat frequently. i use it more than i talk to people on the phone, because it's so convenient.

with the new update, you can slide to the right and start chatting, facetiming, everything. >> for me, when i see most of my friends, it's pictures of something that happened throughout campus, or food photos, or friends having fun at events, concerts. >> like, nobody uses facebook anymore. >> instagram, i mean there's people who, like, you know, you have the fake wanna-be artists who think they're very artistic, let me take this picture of a leaf that looks exactly the same and make it look different, for no reason. i mean, it's kind of cool, but at the same time, it's, like, when you have 50 posts in a row of selfies, it's, like, i'm over this. i don't like instagram, because too many fake artists, or wanna-be models. yeah, snapchat, it's eliminated. as soon as you click, four seconds, oh, man, it goes away. >> what if it was good? >> it was good, honestly, you have to live in the moment. >> say, for instance, i want to make a story with you. >> all right. >> getting interviewed by msnbc, right? >> no, cnbc.

>> cnbc, that was awkward. >> ha! what don't you like about snapchat? >> there's golden moments and you can't even save it. >> is it already getting old? >> no. >> it's different levels of old. like ancient and old. >> like facebook would be old. >> facebook is ancient. snapchat is just old. >> is it all about sexting? >> no, i don't think so at all. >> no -- no -- yeah, yeah, it is. >> is all about sexting? >> what's that? >> i don't do that. >> what's that? >> i don't know what that is. >> would you mind pulling out your phone and letting us take a peek? >> i will not do that because my name would be on the account, and i don't want to get snapchats from a bunch of randos. >> some of my favorite man on the street interviews ever on cnbc. watch the extended director's cut version and hear about snapchat horror stories, and they say what they don't like about snapchat is the anonymity of the profiles. you can't really see who the randos are who are snapchatting

you. carl? >> jane, it might have sounded like he was lying to you, but as someone who's had their snapchat user name broadcast do the whole world, sometimes you don't want to show what the randos are sending. i like when he said facebook is ancient. snapchat is just old. >> oh, yeah. yeah, when i tried to ask him, so, what's new? they all kind of went blank. there is no new-new yet. casey, the 19-year-old there at the end, admitted, i'm the wrong person many i'm so behind the curve. i said you're 19 years old! how can you be behind the curve? >> well, you've done your share of man on the street. those were pretty good, jane. very nice stuff. >> thank you. that was fun. >> jane wells in los angeles this morning. an update for you, "squawk breakthrough." youtube was the subject of acquisition speculation. re/code reporting that twitter is considering buying the company. we had the founder and ceo on this program last year. here he is talking about his company's plans. >> we see huge mow tension and

really building out entire sort of the audio platform, the sound part of the internet. so for us at the moment, we really are focusing on a lot of the growth and engagement we're seeing happening and trying to amplify that more this year. >> i don't know about you, kayla, soundcloud on my phone is one app that's survived. it's with stood the test of time. >> it announced a fund-raising round last fall. $700 million was the valuation. it was three times the quarterly revenues. it will be an expensive acquisition, but they're trying to get into music. >> yes. and with varying degrees of success. some would argue, two steps forward one step back when it comes to music and twitter. >> we have yet to see how the bill board partnership will pan out. something they announced a couple of months ago. >> yeah. a lot of pressure definitely on over there in san francisco. when we come back, "breaking bad" "the walking dead" and tumblr, the new partnership between amc, and going beneath

the surface pro 3. the evc use of many on microsoft's news. i'm going to build off of what you said, breaking bad? yeah, everybody knows it's we're going to talk about that and all of the relationships between bunds a bunds gilts and spanish, and what i like to call spread confusion after the break. [ male announcer ] legalzoom has helped start over 1 million businesses.

if you have a business idea, we have a personalized legal solution that's right for you. with easy step-by-step guidance, we're here to help you turn your dream into a reality. start your business today with legalzoom. the numbers are impressive. over 400,000 new private sector jobs... making new york state number two in the nation in new private sector job creation... with 10 regional development strategies to fit your business needs. and now it's even better because they've introduced startup new york... with the state creating dozens of tax-free zones where businesses pay no taxes for ten years. become the next business to discover the new new york. [ male announcer ] see if your business qualifies.

those little cialis tadalafil for daily use become the next business to discover the new new york. helps you be ready anytime the moment is right. cialis is also the only daily ed tablet approved to treat symptoms of bph, like needing to go frequently. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or any allergic reactions like rash, hives, swelling of the lips, tongue or throat,

or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a free 30-tablet trial. coming up at the top of the hour, the small-cap slide continue, and we'll hear from one strategist who says it has further to go. big retail names are a wreck today. we're going to get to the bottom of that mess and find out what stocks in that space -- traders are buying or dumping. plus, apple shares shining recently, but is the competition about to take a bite out of the breakout? that's straight ahead on the "halftime" show, carl. we'll see new about 20 minutes. >> all right, sounds good, scott. thanks a lot. tumblr getting a big vote of confidence from amc. the channel is streaming the first episode of one of its new

shows, "halt and cash fire," about the dawn of the pc industry on the tumblr site. part of the promotional campaign leading up to the show, it's tumblr's first tv premier, and amc said given the tech story line of the show, tumblr seemed like a natural place to post the premier as between that, silicon valley, amazon series, tech is, i don't know, creeping into the formal zeitgeist of television. >> it's interesting to see them to do something like this. many thought this would be something that would live on yahoo!'s home page, but they're really trying to prove they can monetize some of the properties as well. >> yeah. keeping an eye on the bounce in treasuries. let's get to the cme group, rick santelli with the "santelli exchange." hey, rick. >> hi, carl. hi, kayla. you know, when we talk about treasuries, i think you really have to start looking at the spread relationships. so as i'm talking, what you're going to see is a five-year chart of spanish 10s versus

bunds. the italian 10s versus bunds and a 10-year chart of the treasuri treasuries versus bunds. and why is this important? because in the end, i think that the effect on bund yields, 10-year bunds, based on what we see in the southern european areas, whether it's italy, whether it's spain, portugal, greece to some extent, that i can't tell you how much on that relative value trade it's affected bunds, along with the weaker economy, but it has. then, of course, the bunds come back to spread against our 10-year, against the gilts, so what ends up happening, it's like a daisy chain. these valuations, in my opinion, aren't market driven. they're manipulation driven. they affect bunds. bunds affect tens, and the whole thing becomes very difficult to quantify. that's why i call it kind of spreading confusion. so what does that mean for the

average trader? i think here on the "santelli exchange," we're one of the first areas to really highlight 10s versus bunds. almost a year ago, this thing -- it wasn't that long ago, it was at zero, now roughly 120 basis points. what does all of that mean? it means that all of these pieces, these kind of big glacial moves are on a relative and the logistics of how this is put together are pretty haphazard, because it's central banks manipulating the big glaciers, and now add in something else. i've told you before, if you wanted to keep it simple, the nasdaq is all you really need to watch anymore. if it gets below february 3rd, which that date is haunting us, 39 and change, that it's going to be dramatic. so you have all of this trying to realign, because the ecb, i don't think, is ever going to be able to deliver what it's promised. the reason that these southern yields were so low is because whether it's central banks or the imf, you know, there was -- hey, you want to get in front of this, this is what we're going

to do. i don't think they can do what they've promised. now, add in, what happens if the nasdaq starts to trade below? i've told you, stocks -- the interesting thing about the stock market is there's one place to hedge it. and nobody ever seems to acknowledge this. when they talk about rates, they never talk about stocks. listen, there is no mystery here. if we see a 10% or 15% correction in any equity market in this country, there is very little doubt, no matter where the rates are, they will end up moving lower. so in the end, to think you need to spend $250,000 to have a retired central banker tell you that they really have no idea how all this is going to work out, and that low rates are here to stay, well, of course, they are. because the economic horsepower is an eight-cylinder engine, still firing on, we can argue, three, four, five, six. we can org who's better. one thing's for sure. you're o not taking this thing up to 120 without a couple of shakes on the passenger seat.

back to you. >> all right, rick santelli in chicago today. that major update for the microsoft surface, we'll talk to the evf yusuf in a moment. and why "orange is the new black" star taylor schilling choose to work with netflix? if i told you that a free ten-second test

could mean less waiting for things like security backups and file downloads you'd take that test, right? well, what are you waiting for? you could literally be done with the test by now.

now you could have done it twice. this is awkward. check your speed. see how fast your internet can be. switch now and add voice and tv for $34.90. comcast business built for business.

some of your tweets, "squawk alley," nice engagement over the past couple of days. breaking news from microsoft. the company unveiling the new surface and surface pro. we get to jon fortt who's outside of the event with a special guest. hey, jon. >> hey, yeah, surface pro 3. i'm here with yusuf, corporate vice president, devices and services, talking about xbox one not long ago. and now we have the surface pro 3. satya nadella said off the top you're not doing devices to compete with your oems, and yet this starts at $799. you've touted the power with it, how it has unique thinness. how is this not competing with every other pc out there? >> one of the things we're excited about is the ability to category-create and do something that hasn't been done before today, which is basically answer the question, tablet or laptop? and what surface pro 3 does is provide one device, it can do both. we think working with the industry, this creates a new category where lots of players can come and create.

>> well, someone might argue with you about the category not having been created before. they think it works well. show us what this can do. you have a pen that comes with the device. the keyboard is 129. that's extra. you know, people can do the bath, 799, 129, you end up around 850, a little bess, if you get this with the keyboard for the productivity. >> a few things, jon. first of all, one of the things we can do with the focus on productivity is have a device that's this thin. third of an inch thin. 800 grams, incredibly light. but it packs the full power of the pc. intel 5 processor and great features. with the pen now, one click, and i instantly get taken to notes and i can go ahead and write notes, or another click, that's now up in the cloud, and now all of my devices have those -- have those notes right on them. >> that's a bluetooth connection in. >> bluetooth. and do rich things here with

onenote. this is the power of microsoft, cloud, surface, coming together to create one experience that makes it great for people. >> in the presentation, you showed computer-assisted design, architects using this product, full pc power. at the same time, the pc market overall shrinking. tablet market slowing down. you need to gain share in order for this to really work, and you're kind of at the higher-priced end of the market at 800-plus. how are you going to market this? how much is microsoft willing to spend to push this idea? >> yeah, so again, one of the things that's fantastic about this device, and here i'll show it to you in the laptop mode, is it is really the device, the tablet that can replace the laptop. today, all of us, 96% of people who have an ipad, have a lop top in their bag. now you get one device to do both. you have the ability to lock in here, go into full canvas mode, and if you look at the screen, you get the full power of windows, which is not only all

microsoft office but business apps for architects, doctors, so the ability to do everything on one device, we think there's a market for it. >> how will you push it? a windows style launch where you spend tens of millions of dollars marketing this, magazines, tv, billboards in times square in how big is it for microsoft? >> we'll have an appropriate-style launch. we believe this is a category-creating device. as a result, you'll see us really get after it and talk a lot about it. we've been doing, for example, a lot of outreach to commercial customers. so in the enterprise, as of today, companies like bmw, coca-cola, lmvh have already committed to deploy these in enterprises. the opportunity for the company is good, in the consumer market and enterprise market. >> are you positioning this versus the mac book which you had up on stage? mostest positions seem against that or against the ipad which has the lion's share of the tablet market and lion's share of the profit? >> so in that respect, humbly,

we think it's the best of both. it is actually thinner and lighter than a mac book that we compared. we'll have a better screen, content capability and more power to push through to run things like office and the apps. so really you get the best of both of those in that device. >> are you marketing to enterprise or to student? is this a dads and grads back-to-school push? or more selling it into the enterprise channel, bmw as you mentioned and the likes? >> yeah. this is going to be a great device, frankly, for anybody who really wants to create and be productive. so not just sort of read books but write books. not watch movies but edit movies. not sort of consume art but create art. the power of this device is it will appeal to anyone who is a productivity, business professional, or student, as well as the enterprise. >> what's the impact then of satya nadella on the final launch of this device? i know these things take longer than a couple months to put together. but he is the one on stage here launching it. >> yeah, satya has given full support behind the device as he talked about today. the vision we have as a company

to be the do more, be more company, this fits right in line with his strategy. he's been a big supporter. >> well, quite a bit more news to come i'm hearing from within microsoft this summer. this device certainly is a different take on what microsoft wants to do with the surface. yousef, thank you for joining us. >> thanks, jon. >> a great interview. jon fortt outside the microsoft event in new york city. when we come back, the star of "orange is the new black" on why she wanted to work with netflix, when "squawk alley" continues. beautiful day in baltimore where most people probably know that geico could save them money on car insurance, right?

you see the thing is geico, well, could help them save on boat insurance too. hey! okay...i'm ready to come in now. hello? i'm trying my best. seriously, i'm...i'm serious. request to come ashore. geico. saving people money on more than just car insurance.

(announcer) scottrade knows our and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick trade bar lets my account follow me online so i can react in real-time. plus, my local scottrade office is there to help. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade. voted "best investment services company."

♪ it's such an innovative platform to view media, view entertainment, that i think that the -- that the -- the immediacy of the experience for an audience certainly feels like the story that we're telling is received much more intimately

and that's -- that's pretty cool to be a part of. and it's also such a -- it's such a -- there's a lot of creative freedom working in netflix. they're not beholden to advertisers or anybody. so we're really -- we're kind of free to do what we want. >> that was "orange is the new black" star taylor schilling. we caught up with her at the webbies. she said netflix is her new favorite platform. no spoilers for season two. >> you asked her whether or not she has trouble buffering, streaming through netflix. not familiar with that -- >> yeah, not familiar. i would imagine netflix takes care of their own. we did catch up with a lot of other people last night. a very fun crowd at the webbies. here's some of the other commentary we heard. >> the fcc right now has opened up for public comment, and so any one of us citizens, especially all of you that participated in the fight, call up your representative, the fcc,

maybe your senators, ensure we get broadband reclassified as common carrier. >> i'm for equality, everybody being treated the same rather than having corporates -- corporations being more powerful than the common kid working out of their garage. >> suki is one of the most valuable dogs in terms of brand on the internet right now. suki, how do you feel about your fame online? a little shy. and bored, apparently. so what's next for you? i mean, the mobile era is upon us. people are watching more videos on mobile. [ laughter ] >> no thoughts there. career highlight for jon, i have to imagine. >> it only gets better from here. george takei, a great --

>> yeah, 77-year-old star of "star trek." it's interesting to see him, winning a webby last night. >> unbelievable. it's really excited. a good hour with microsoft and some of the gm news, some breaking news here the collision between old school business and the world of tech. as we get close to noon, let's get back to headquarters and check in with wapner and "halftime." >> all right, welcome. here's the playbook. the apple breakout. the stock at its highest level in 18 months, can you afford not to be in that name? retail wreckage. from tjx, it's a rough day. was it the weather or something worse? scratching the surface. as microsoft rolls out a shiny new tablet, will it keep the stock moving higher? let's meet today's starting lineup. pete, steph, josh, joe are trading today. we do begin with stocks slipping in small caps at the center of the selling once again. so is an even bigger problem ahead for that part of the market which had been s