plans for a variety of reasons. the original deadline was june 26th although citi bank said they wouldn't try to resubmit and put something together. it would always wait until next year for the because issues with the plan they had submitted. hsbc and royal bank of scotland are just down slightly. >> on a week where people are watching the financials and degree in which they out perform the broader market as a sign of the broader economy's health. >> especially when you see numbers like we saw in housing today as the consumer starts to purchase, starts to take out more loans, starts to borrow more. the expectation is that banks would see more business and second quarter earnings are a couple weeks away. >> perfect segue to spencer rascoff from zillow. spencer, great to see you. you can cover everything from the macro to technology as kayla and jon fortt are here as well. survey from r brk c says demand

for the iphone 6 pretty solid. rbc's data indicates 60% of people who intend to buy a new smartphone this year will likely get an iphone. they say consumers are prepared to pay more more for a phone with a larger screen, the krooen iphone 6 is rumored to have and out perform rating on apple with a price target of $100. actually screen size according to the survey, jon, is one of the most important things people look for in a phone. >> arguably a miscalculation by apple. they got to sort of thread the needle between people who want to be able to hold this thing in one hand and people who want the larger screen. exactly how large the body is here will be important. there is a difference between what apple has just a modest upgrade cycle and a strong upgrade psyche until hardware. that is absolutely going to be key. i want to ask spencer, since wwdc and all of the new software hooks that apple rolled out, how

much harder is your team at zillow working versus any other year? are you going to try to take advantage of those? >> we are. every time apple upgrades the system zillow is all over it. i can't wait for a larger form factor. i'm always testing new phones. i've been testing a couple of samsung galaxy phones against my ickes phone and we're now on the fire phone which i'm super excited about. and it's not just the bigger form factor in terms of screen size, it's also hopefully battery life which is the thing that kills me and everybody with their eye phone. i'm excited about the iphone 6 for sure. >> especially when you keep upgrading your operating system. that's what really kills you. they make you go and purchase the new phone, too. >> they certainly do. they certainly do. they've clearly apple has definitely lost share to android. everybody knows it. screen size and form fact rer a big reason why. so i think it's great. i'm excited about it. i think it's going to sell really well. >> now, you have said, i

believe, that home buyers tend to skew towards ios. renters, toward android. how has that affected your strategy and do you think a bigger screen will play into that at all? will it be premium? will you get even more of a return off of those users? >> i've discussed this with a lot of other web publishers and it's kind of in quiet conversations, it's something that we all kind of share with each other, which is the iphone user does skew more affluent, not just for real estate purchaseses, but for kind of every vertical and it's different than the android user. we're quite hedged. we have embraced all the different mobile platforms with gusto. but it is true and undeniable that they are different users between the two platforms. >> bigger screen, more expensive, do you think that will just maintain this skew for that price point. >> i think it depends on how well apple positions the marketing of it. and you know, under this new tim cook regime that's very much an open question.

i think people are really asking themselves for the first time in seven or eight years, can apple make things cool? and of course the acquisition to beats was clearly one of the reasons behind the acquisition to beats was to try to regain the cool. and so, i don't know, we'll see how they position the larger screen. but i know i'll be buying one. >> some of the supply chain checks suggest 60 million units in the december quarter. >> wow. >> if those are correct and of course it's a big if, it could be a very big end of the year in terms of shipments for apple. we'll see. >> is it going to be enough. you've got to get the right units in the geography. not a good headline for marissa mayer today. she was two hours late to a major meeting with top marketing execs. the reason, she fell asleep. julia boorstin tells us why this is such a big deal. >> that's right, carl. a source who was at the dinner organized months ago tells me the purpose was to introduce mayer to some of the agency's biggest clients, incueding miller coors and giovanni.

she came in about two hours late. what one source said was, quote, inexcusable for the guest of honor. this frustrated michael roth had walked out. this is on the heels of a quote, stiff and not particularly impressive presentation to advertisers and the festival. a yahoo! spokesperson not commenting other than to say, quote, we value our partnership with ipg and all of our advertisers. this is a crucial time for yahoo! to get advertisers on board as it growing competition from facebook and google. last year revenue declined and lost market share. now it has just 2.8% of global digital market share compared to facebook's 5.8% and the pressure is on mayer since she fired chief operating officer castro in january. now, she's looking to lure consumers and advertisers to its new digital magazine format on topics for beauty to technology

and is also featuring more native advertising or articles sponsored by brands. now, despite all the noise about myers' performance in cannes, sir martin told me today, quote, marissa is changing yahoo! and developing new products and platforms which are increasingly engaging. guys? >> julia, thanks for that. jon, it's obviously getting a lot of play. people snickering about it. she did ask for the additional duty by not replacing decastro. >> she did. the problem here is decastro had had this history of appearing unprepared before the ad community and questions about, well, is yahoo! trying really hard to be tech cool and not hard enough to really give advertisers what they need. something like this doesn't help. spebs spencer, do you have a strategy for not over sleeping? who wakes you up if you haven't called in for the meeting yet? >> i feel awful for marissa. mistakes happen. i'm sure she feels terrible.

unfortunate situation. yahoo! has partnered with zil w zillow. i can tell you that the much more important fact is employeess are fired up to work at yahoo! for the first time in five years. and -- >> a lot of the glass door numbers would back that up. >> 83% approval rating. she's made it cool to work at yahoo! again. for a consumer internet company it's hard to turn around a culture once it gets soured. and i think that's hopefully a leading indicator to product development, innovation, and if you have the audience, advertisers will follow. i'm sure she feels terrible. i think she's doing a lot of great work turning the company around from a culture standpoint. >>s there's still only so much one person can do. it brings to my mind the profile in vani"vanity fair" when frien boasted she only needed four hours of sleep. she built a nursery next to her office and now the lead has gotten reinvigorated saying is she leaning over, is she taking

on more than one person can possibly bear? >> it's a lot of responsibility. she's a great partner with jackie reese, head of hr and the two of them, it's indisputable they've turned around the internal culture. now, can that improved internal culture translate to product development and at tract audience and then advertisers? we need a little more time to see. but it starts with the employee base and i think there's a lot of good work there. >> the challenge i see for her is she has a bit of a story, history of keeping people waiting. at google she used to keep people lined up outside her office to see her. there is the story about ross waiting to talk to her for a long time and leaving because she didn't show up in time. and then late. so there's the issue of maybe she doesn't feel like everybody else's priorities are as important as hers. she kind of needs to fix this. it's a messaging problem. >> i think back to when they bought tumblr we did her interview at the nasdaq when she was fighting laryngitis. the job requires some physical

stamina and some people respond to that in different ways. finally, spencer, new home sales. highest level in almost six years. home prices rose less than april but still up over 10% year over year. robert shiller did join us this morning. he wasn't too worried about home prices. take a listen. >> prices are more or less okay where they are. they went up way too high in 2006. they came down like 50%. now they're going up. they look about right. and you know, i hope people just don't get so worked up about them. think about other things in life. >> interesting take on it. >> i love bob shiller. professional shiller. only a university professor can, you know, get away with that. he's right. i mean, he's right in the sense

that there's a lot of noise. there's a lot of data. i think you had an earlier guest who described new home sales report as, you know, noisy. it absolutely is noisy. the reason it's so noisy is, it's mood from a national real estate story to a local real estate story. you have some parts of the story like manhattan and the bay area, 20% year over year and other parts of the country like the midwest that are flat to down. what's driving these different markets now are inventory levels in each local microcommunity. if there's negative inventory, somebody upside-down on their loans or because of geographic con trants like manhattan or the bay area where there's nowhere for housing to go, then you have rapidly appreciated housing markets econ 101, then obviously it's more of a buyer's market. that's why the data is so confusing. >> you were using the term bubblelicious to describe san francisco. >> it still is. latest data is 18% year over

year for the bay area. seems to have no end. >> it does seem like older generations have been keeping their powder dry for the last several quarters. they are now able to jump back into the housing market as evidence for that crazy sales numbers. there was a piece in the "new york times" magazine over the weekend provocative about the boomerang generation. one in three college graduates moving home with their parents, not moving out in the foreseeable future. i'm i. wonder at what point that starts to have structural implications for the housing market. >> our data and my gut says that there is is no dramatic change in people's interest in owning housing. that, yes, we moved to a renter society on music and movies and cloud storage and photo sharing, everything elsewhere we rent from the cloud instead of owning. housing, not so much. i think that we still -- nothing is fundamentally changed about our instinct. >> your stock at zillow is up

67% year to date. you said you're going to make major investments in marketing. the fact that we see these housing numbers coming in so strong, is that proving that you made that investment at the right time or should we read it that way? >> i think we made the investment in advertising at the right time relative to the growth of our brand. so last year we spent around 35 million in advertising. this year we'll spend 5 million in advertising and our brand is breauxing to quickly in terms of awareness. also the fastest growing. so that's why we're investing so heavily in advertising. and you know, you would be happy to know at cnbc we are heavy tv advertisers, not just online advertising but tv has been affective place for us to advertise the zillow brand as well. >> it's good to have you this hour. >> thank you. meanwhile, the new home sales coming in above 18% rise for may. that's of course one data point that's helped propel the markets forward. they had been negative in early trading now halfway through the

session you're seeing the dow up nearly 22 points. s&p 500 up five. the nasdaq up nearly 0 points. still on watch for dow 17,000, just about 40 points away. on the nenlg side, micron technology is in the green after third quarter profit and revenue beat estimates. that's thanks to rebounding pc demand which continues to surprise even the best of us. micron up better than 5% right now. and also shares of wall gregree missed estimates. the company citing pressure on pharmacy profit margins for the miss. and also finally a huge day for vertex pharmaceuticals. the stock soaring during trading this morning. up better than 40%. 93.76 is the print at this hour. meg terrell is back at hq to tell us what's going on there, meg. you saw this coming. >> that's right. this was really an anticipated biotech this year. we talked about it yesterday. vertex reporting positive phase

three data this morning on two drugs for cystic fibrosis. the drugs act in combination to help patients battle the disease. we're taking another run looking at an in-depth look at how they work. cystic fibrosis is caused by mutations to a gene known as cf,tr. when the gene is defective the proteins can't help fluoride escape the sell and hampers the movement of fluid to the cell wall and leads to the production of thick mucous to airways and other areas. the first medicine to address it restores the proteins ability to allow chloride to pass through the cell's membrane. only 2,000 patients with cf can it currently help. many though have a bigger problem. protein can't get to the membrane at all so vertex is testing another drug, lumacaftor where kalydeco enables it to open the passage of fluoride. it can help as many as 14 times

as many people. so that expanded patient population of course means bigger numbers for vertex. analysts now see peak sales for cystic fibrosis for vertex of more than $5 billion. that compares with about 371 million that kalydeco brought in last year alone. orphan drugs often priced more than $100,000 a year. that's still a question we have. we will be talking exclusively with vertex ceo on "closing bell" today. >> meg tirrell talking vertex today. when we come back, who stands to make money when gopro goes public this week? plus, is apple's new retail strategy moving past the steve jobs era? former head of marketing will tell us what angela ahrendts brings to the table. and apple made the big pitch earlier this monday. now it's google's turn. what new things can we expect from the tech giant's presentation when it begins tomorrow. geico's been helping people save money for over 75 years.

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today. since launching the first device in 2009 gopro sold nearly 9 million hd cameras including 4 million in the last year alone. when the company goes public this week who stands to benefit? josh lipton has more on that. josh? >> carl, what dets gopro apart from the competition, its very smart packing and several high-quality microcomponents at the heart of go-pro's advantage is a sony image censor but it's not just sony on the inside. you take it apart and you're going the find chips from a variety of manufacturers including qualcomm which applies the blue tooth connectivity of the camera and another chip maker which provides the camera's internal memory. investors might not be all that particular with amarella but over the past 12 months surged over 90 '. as gopro continues it's certainly a company to keep an eye on. what about the lens?

well, i-fix it takes apart colle electronic for a lifliving and says gopro has developed its own unique lens technology. >> really what makes them shine is they were able to take all of these components, put them in a very attractive package and be able to give this to people in a specialty niche market that didn't exist really previous to them. >> analysts expect gopro to continue to innovate the camera pact inside the cameras and they expect other camera and electronics manufacturers to go after gopro in the growing action camera market. carl, back to you. >> josh, thank you very much. josh lipton. what do you think? spencer, you've been reading the s1.

this founder, this guy, i met him at a conference at this earns and young entrepreneur of the world awards banquet, 1,000 big wigs in the room. and this guy has a charisma about him that people wanted to be near him. and he has quite a cult of personality. he's got it at his company but he's got it at the media as well. i have a little bit of a bromance going with him, i think. he's a special entrepreneur. but the interesting thing to me about gopro is they're trying to really pull off a pivot from being a hardware manufacturer and a retailer to being an active brand to really being a content production company and they're trying to monetize with licensing revenue from youtube and xbox and virgin american airlines where they're trying to create a brand around active lifestyle. that's going to be a tricky pivot to pull off. that's what they're trying to do. >> very loyal user base. 6,000 uploads to its youtube

channel a day. 1.9 million subscribers. it's not starting from zero. >> not at all. staving off competitors like sony who have already tried to get into this market and failed, that is impressive. i think they mastered the lien forward experience. what they have to do now is figure out the lean back. the mass market. can they do this media thing. can they create software that makes it easier for people to share and edit these videos once they've shot them if they can do that they can be better. if not, they could peak. >> they remind me of a company in the news this week, drop cam, bought by google. there are plenty of other ip-enabled webcams and yet drop cam attracted google's business and got paid a lot for it because they just made it easier. iphone or ipod, same thing. plenty of other mp3 players before ipods came along and there are several other active camera products from sony and

polaroid and others. gopro only has 50% share of that category. they made it easier. they made it cool. that's what's hard. >> you were also tweeting about the fact that there will be a dual class structure founder control. zillow has that, too. investors have not always loved that because it does take away from their voting rights. would that give you cause for concern? >> it's funny. when zillow went public three years ago our investment banking underwriters told us that might be a problem because the shares that the public buys have one vote and the shares that our co-founders have have ten votes. it's turned out actually not to be an issue. and google has kind of popularized it. >> facebook. >> facebook. and traditional media companies like news corp and liberal media and "new york times" and "washington post" have long had it. i think it will be fine because investors believe in nick and investors believed in the zillow management team as well so they kind of give you a pass. it allows the company to be very long-term oriented.

like the pivot, they're going to do it because nick thinks that's the right thing for the company. if he starts meeting with hedge funds and mutual funds, hold on, that doesn't make sense, he's going to do what he thinks is right ten years from now and zillow, for example, we've invested heavily in rentals, which was not a money maker initially, but it's going to be. and we can make long-term bets because -- partly because we have a dual class stock and so we think really long term. >> we'll talk a lot more about gopro later in the week. inside look at apple's strategy and the tim cook era. former vp at marketing at apple is here. speaking of apple, how many of you would buy an iwatch? we'll give you the details on a new study that could make the tech giant a little bit nervous. dow is up 23. "squawk alley" will be right back. financial noise

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ten-year highs. also the leading gainer in the dow so far today. also chip equipment maker applied materials also up today. also up around decade highs. carl, semi don conductors and the equipment itself doing well in today's session. back over to you. >> everybody is watching intel today, especially. thanks. we want to check in on the markets. dow is up some 20 points. it's been trading in the green for the past hour and a half or so. once again in that zone where we're watching dow 17,000 and we should mention again the s&p did hit an intraday high although i think we're slightly off the highs for today. apple's senior vice president for retail angela ahrendts has tank to linkedin about starting anew. she writes, i thought i would share a few professional and personal insights which are helping me adapt to a new sector, culture, and country. silicon valley can feel like a country unto itself. joining us exclusively today is the ceo of splunk and former vp of apple marketing.

godfrey, it's good to have you back. >> it's good to be here. >> i want to talk business with you. first off, what's her mission in your view as she comes in and assimilates into a until. >> i think she just has to come in and learn the culture. that company has a very unique culture. >> how would you describe it? >> engineering excellence, very first thing they're fin gnatically driven about the customer experience. is it integrated. the reason i why i have something of everything of apple's is because it all works seamlessly. i don't have to think about stitching the stuff all together. all the content goes to i cloud, all my stuff works without me having to worry about it. i think their focus on the consumer is what benefits them. back in the day when i was there it was much more in the enterprise segment and kind of without saying too much about it walked away from the enterprise segment and focused exclusively on the customer experience and consumer markets, customers really appreciate that experience. and it served them well. >> apple's cultural shifts have kind of been around steve jobs.

i believe he came in around '85 when he was out and stayed as that enterprise business built up. when he came back the culture shifted again. now it seems to be shifting yet again. there are more people front and center. more executives that are allowed to talk about apple. that didn't happen so much under jobs. you've got johnny, angela ahrendts putting on a post on linkedin. katie cotton never would have let that happen. what do you think about the way the culture seems to be shifting right now and what that might mean? >> if you go back to '81 which was actually when i started there, so i had some of the jobs years and then i had the not jobs years and left in '92 in the still not jobs era. all through that apple was a pretty secretive company. that held true all of the way through. i think tim is starting to put a little bit different mojo on it in terms of being more open. they are still very secretive around their product announcements but it's good. all that talent was always there. all those people were there doing great work. and i think tim cook's willing

to shine a little bit more of a bright light on him. that's difference in leadership style. i'm sure the apple employees enjoy the ability to represent the company a little bit more. >> as vocal as apple has been in the last few months, tim cook talks to reporters more. he's on twitter. he's on capitol hill. and now angela arentsz with this linkedin post. do you see this as a hard right turn for apple or a natural evolution as the country and the public and the markets become more interconnected, too? >> i think it's -- tone starts at the top. this is more about tim cook's tone and he's setting that style for apple and i think the employees will embrace it. >> let's talk about splunk, the company that you're ceo of. interesting, one of those stocks that's moved around quite a bit, i believe it's down 22% year to date. are people not getting the value in big data or is this just sort of like a healthy correction as people start to look at, okay, what's the real business here and how is it going to grow over time? >> the class of 2012 is what we

think about about all of us who went public in 2012 and the entire category had a phenomenal run-up in the fall. and they had a phenomenal downturn in the spring. i was so popular and so smart in the fall. and now my mom won't even return my phone calls. >> come may 1st, what happened. >> your mom didn't hold the stock? come on, mom. >> i don't know. she won't call me back. but the whole category had quite a ride. and now we're back to most of the category of those high growth stocks are back where we were a year ago. 20% of where we were 12 months ago. in the meantime we had quite the run. it's exciting. i don't recommend it for everyone. >> a then you walk into a week like this where oracle makes a big deal in the space. we just mentioned drop cam a moment ago. do you think you will fully recover what you lost at the end of february and do you think the rest of the year will show acceleration in the cap x? >> not all the companies in our category or elsewhere can focus on the stock.

you have to build great products. from fanatical vision and commitment around that. so we just really think about building great products and make customers happy. >> quick question -- >> as long as we do that the company will take care of itself. >> why do you think there is an enterprise feeding frenzy. oracle, san dusk, fusion, io, others. is it dangerous to try to remain independent as a smaller enterprise company? >> as long as we're growing, then we'll have really strong shot at independence. it's really when growth slows down, markets start to consolidate. it's inevitable in tech that things can consolidate. it's when markets slow down. growth cures all sins. >> company like us, we're drowning in data. and what companies like splunk do is let's us make sense of it. we're a customer of splunk and we're a customer of a lot of these big data companies that help us make sense of all this noise. so i think we also went through kind of a gut wrenching up, down, up again in the stock

price. >> you were smarter at some periods and less at others. >> it's all about timing on when to appear on cnbc. you have the right mentality which i share which is we're incredibly focused on what the s. the stock price going to be in ten or 20 years and not today. >> you can say that now because it's up. >> i even said it then. but what else can you do? you can't worry about things you can't control. you can't control the weather so you don't worry about it. >> the main take away, growth cures all sins. i like that. >> godfrey, great to see you. please come back. godfrey sullivan from splunk this morning. a few minutes behind on the european close. >> carl, further evidence the eurozone economy is losing today. the efo dropped unexpectly again. the expectations index is of concern. jpmorgan points out it's still at a level consistent with 2% growth for germany moving forward. top stock gainer, ag play in

switzerland that monsanto disdiscuss with them a takeover within crops and seeds and ultimately the two didn't do a deal. stock was up 7%. it's still more or less up there. the airlines have been making gains during the course of the session today. i can't give you a reason for that. i can tell you that they've been beaten out recently and it is despite the fact that you have now a six-day strike, labor action in friend share space due to the air traffic controllers there. if you're traveling through europe to north africa or southern europe you will face delays possibly over the next six days. finally, the big one out of london today, apart from rebekah brooks being found innocent in the murdoch trials is the fact that the bank of england governor mark carney had suggested or maybe further confused the markets that actually there's enough slack in the uk labor market not to raise rates as soon as everybody thought. he was actually giving evidence on parliament to a committee of the house of commons after the

inflation report. the inflation report, he said it's wages driving him partly or the members partly to that decision and people should not focus on how soon rates will rise but what the medium term level of rates will be. what we would call the terminal rate in this country. around the sterling popback below $1.70 as you can see. very much up there at the five-year high. back to you. >> thanks a lot. when we come back, wearables, car technology, or something completely different? what we might expect at google's developer conference tomorrow. plus, it's good to be the queen. the intersection of a british monarch and game of thrones when "squawk alley" continues. but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro.

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♪ jerry seinfeld on the cover of "wired" wearing google glass the day before google io kicks off the conference with an apparent emphasis on wearables. still with us this morning, spencer rascoff of ceo. we talked about wwc. i wonder how io fits in your world? >> google is such an important partner to us. they become so critical to the eco system of so many parts of the internet. from obviously search marketing where so much free organic traffic comes from search to paid markets to now display

advertising to double click to youtube advertising. i mean, it's impossible to over state the importance of google. >> it's also the source of majority of any mobile security issues, too. mcafee report said some 96% of all viruses on mobile come from the android open source app. i'm wondering as someone who has probably watched ebay, target, all the companies deal with breaches, do you worry that eventually you will be victim to that on android? >> we don't store consumer credit card information. we certainly worry about data breaches, but, you know, if there were a data breach in zillow, god forbid, you're going to be able to find out which homes you saved into your account, homes that you like. not great for your privacy but also not like getting your credit card data out of your target account. >> are you more watching the android changes or the android wear changes? because a watch is something that people might take out when they're looking for houses, but at the same time android is so frag med when they come out with a new version it's not like the

zillow users are going to be using that two months from that the way they would with apple. >> so i wear fit bit. i love fitbit and, you know, as a wearable technology. but i think it's still a little bit early in the wearable space. for us, mobile and specifically smartphones and tablets, that's the here and now. that is driving the business. we experiment on the margins with some of these more futuristic technologies, but they're not going to move the needle for any publishers. >> this piper survey today asks people if they would buy an apple iwatch at $350, percentage of yes, 14%. 14%. and they also say even at a lower price point, it's hard to get people to get -- to be interested in this beyond sort of the fitbit notion. >> it will happen. there's no question. i wouldn't want to be a watch manufacturer right about now because, i mean, i'm sure watch sales must already be down worldwide because already, i only wear a watch half the time because i check my phone which has the clock on it, right?

so as more of this technology moves away, i think -- there's the next industry that will be disrupted. 500-year-old industry of watch manufacturer sxwlg if you had asked people preipad if they wanted to tablet at 500 buck, absolutely not. >> fair enough. >> why do you wear a fitbit? >> we gave it to all thousand employees at zillow. we use it as a sense of friendly competition. i pull up on my iphone or android every employee's steps and activity and we cheer and jeer each other. >> wow. >> we have treadmill desks. it's part of our culture and friendly competition and activity. >> that sounds intense. >> it's a little intense, yeah. >> take a look at the markets hanging on to a moderate gain here of 16 points on the drou. a lot driven today by good new home sales data today. consumer confidence also at a post-crisis high. when we come back, perhaps some changes coming at buckingham palace.

the intersection of queen elizabeth and game of thrones. rick santelli, what are you watching today? >> simon got me thinking. when we think about mr. carney and what he has said of late may change the outlook for interest rates and the value of the pound, we're going to talk about central banks and how they communicate and whether there's a quid pro quo going on with the big players in the market. all after the break. type 2 diabetes effects millions of us. and for many, it's a struggle to keep your a1c down. so imagine -- what if there was a new class of medicine

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correction in more than three years. but, what are the risks to this rally? we'll find out. gopro is expected to ipo this week but you could already be playing in the name. we're busting open agopro to reveal the company's inside. royal highness queen elizabeth comes face to face with less regal royals of "game of thrones." how did it go? that's straight ahead on the "halftime report." >> we want to get over to the cme group. "squawk on the street" standing by. over to you, rick. >> thank you very much. you know, when it comes to central banks and the economy and the stock market interest rates i really do believe there's a quid pro quo going on. and basically, you know, a quid pro quo means kind of tit for tat, give or take. i really think it's pore like a quid pro quote. the central bank is important. i don't think central bankers

can communicate in the way they use the form or the word communicate because whether it's an exit for janet yellen or mark carney, one really rates go up or actually how far and fast and what the time frame is or when we look at what's going on in japan, the notion of how much reflation they're looking for, what's under control, what isn't. i do believe it's about quid pro quote. that the communication, the effect of the market is fascinating. whether you think that the level of the stock market really is synonymous with the economy, but that's the conclusion everybody runs to, or that when you have really low interest rates, that means you have a real high amount of credit that's available, and in my opinion neither of these are really true. yes, there are good things about the economy, for sure. but is it really on par with the level of stocks. and on interest rates, here's where we ended up i think getting sold a bill of goods

because from a central banking standpoint everything done to interest rates was for the notion of increasing available credit. and if you're the big boys you're dealing with t. shadow banking market it is available to you. but in the end, let's look at this relationship and mark carney really opened up many people's eyes and even as simon pointed out the pound hasn't fallen much, in his statement was that central bankers including janet yellen will kind of lost when it comes to when to raise rates or how far or how fast to raise rates. this is the quid pro quo. if you have a stock market that's sending a message, whether they're synonymous or not, at lofty levels, that's the part that investors and hedge funds are not going to squawk about much. on the other hand, what do the central bankers get? they get low rates. why is this so important? because we basically spend about $225 billion to service our debt. that's debt at these levels. think about the scale of europe or spain or portugal or italy or

what's going on with, you know, 50 something basis points in japan where they have debt to gdp of 225%. so in the end the game will go on until one of these signals breaks. and in my opinion, you want to watch rates the most because if rates don't play along with the quid pro quo to the central banks, that message is going to come quick. that's why there's so much talk about things like exit fees. back to you. >> rick santelli, thanks so much. at&t ceo randal stevenson on the hill today. can he convince lawmakers on his company's merger with directv? i spent my entire childhood seeing the world in reverse, and i loved every minute of it. but then you grow up and there's no going back. but it's okay, it's just a new kind of adventure. and really, who wants to look backwards when you can look forward?

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john ledger is at it gone on twitter. at&t's ceo is on the hill today defending that company's impending $50 billion merger with directv. hampton pearson with more. >> kayla, yeah. if you will, it's a congressional double header for the proposed $50 billion deal, merging at&t and directv. the house judiciary and trust subcommittee this morning, its senate counterpart in the afternoon. it's up to regulators at the department of justice and the fcc to decide the fit of the deal. this is really the best chance

for at&t chairman randall stevenson and direct tv ceo michael white to make their best case to the public. they've spent a better part of the last hour telling lawmakers expanding video services to at&t wireless devices could mean lower content costs and expanded broadband services to millions of customers, especially in rural areas over the next four years. >> being able to offer directv nationwide is a game changer in terms of the economics for deploying broadbrand. it will allow us to expand and enhance broadband service to at least 15 million locations across 48 different states. and those are mostly in underserved rural areas. >> but lobbyists for consumer groups and the cable tv industry are arguing the merged company means one less competitor in the growing online video space. and as a merged company, they would have 26 million customers. they also argue directv would gain a lot more leverage to charge more for its sports

programming nationwide. this is, of course, the second time in recent months congress has examined a multibillion dollar telecom deal. these same two congressional committees heard from comcast time warner executives last month. one lawmaker wondered out loud today, could sprint and t-mobile be next? carl? >> hampton pearson on the at&t story. hampton, thanks so much. when we come back, what happens when queen elizabeth visits "game of thrones"? the pictures tell the story and they're coming up next. dow is up 16. she's still the one for you.

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ask your doctor about cialis for daily use and a free 30-tablet trial. our special "game of thrones" tribute thanks to the graphic department. speaking of "game of thrones" there was a special visitor the set in belfast, queen elizabeth. during her tour the queen met some of the actors, saw some

weapons and, o of course, was given a tour of the iron throne. she did decline to sit on the throne. depriving us of an amazing photo op. >> she's got her own at home. >> warden of the north as i said on twitter earlier. that's a nice picture if you're a fan of the show. >> perhaps now is the time for me to start watching. this will do it for me. all right. looking at the nasdaq close to session highs. we want to get a quick check on what's moving. >> chinese internet players soon lay in focus. an ipo on the nasdaq trading sharply higher on its first day of trade. i spoke to the ceo who said one of the company's goals is to enable users to manage and consume digital media content on their phone. currently overall they have 300 million unique active users which jao says is 50% of the chinese internet market. zunlei will be joining the ranks of other companies focused on capitalizing on the fast growing internet market in china. another active group of stocks

today, social media providing a lift to the nasdaq. groupon leading the pack, up about 12% in today's trade. back over to you. >> seema, thank you so much. before we let spencer go and we seen off, stocks doing amazingly well. almost $140. all-time high. people still write in and say multiples not deserved. you're stingy with metrics. more clarity. what do you say to those people? >> haters are gonna hate. >> simple as that? >> i don't worry about it. there's nothing i can do about it. we deliver and we kind of focus on building the business and building a product and delighting consumers and whatever. the stock will do what it does. >> how do you keep people from focusing on a stock price too much in times like this? >> i forbid employees to check on the stock price. we don't talk about it. we never discuss the stock price internally. it just doesn't matter. we discuss consumers and advertisers. the stock price will take care of itself. >> we heard from ceo of splung

earlier this hour talking about the roller coaster ride. he was smart and popular in the spring. now his mom won't talk to him. did you not watch that during that harrowing time? >> we had an up and down time then up again also. i try not to overly focus on it and try not to let it define me or define the company. we've got 80 million people that use zillow every month. if they have a great experience and they tell others about it, ten years from now the stock will be worth a lot more than it is today. >> thank you for coming by if for the hour. >> thank you for having me. that does it for us. back to headquarters, melissa and the half. >> welcome to the "fast money halftime report." i'm melissa lee in for scott cap n -- wapner. the hottest ipo of the week. we're tearing apart go pro to find the profits inside. social search. investors are making friends with facebook and groupon again. is it too late to get in? queen of thrones. what do graphic violence, strong sexual content and the queen of england all have in common? they're all part of our worst