♪ and welcome to "squawk alley" on this wednesday morning. joining me for the entire hour today, jon steinberg, ceo of the daily mail north america and cnbc contributor, good morning. busy day. we're going to start in sun valley today. some of the top names in media and technology are meeting right now. our kayla tausche is live. raise the curtain for us. >> i apologize in advance for the bees and flies that are swarming around me. we are in the wilderness, even though it doesn't look like we're roughing it, carl. talking deals, talking moguls. 200 of the biggest names in tech, media and asset management. so shareholders in a lot of

those companies have converged in what aol ceo told me he likened to a college alumni weekend of sorts. not only rivals but former colleagues as they're now executives of some of these big companies. all the usual suspects are here as we've been telling you. top brags at facebook, at twit linkedin, disney, you name it. every single big company in the media and tech world has someone here. you can be sure of that. yesterday when these moguls were arriving we caught up with a few of them. espn chief john skipper, fresh off that germany/brazil match that broke records on twitter and in the ratings calling them spectacular and the world cup in general spectacular but said he cautioned it didn't mean international expansion for espn just yet. he referred any other questions that we asked to his boss, bob iger, who, of course, followed just shortly after him at the sun valley lodge. we asked bob iger about his successor, if he's close to naming someone to take the top

spot at disney. he smiled and cordially walked away. we're waiting for some sort of announcement from disney on that front about who will take the top spot there. this morning, arriving at breakfast, we saw barry diller, asked about aereo, he said basically, we fought the good fight. that's all we can do but not much more to say than that. it crushing blow for diller, an investor in area that got dealt that ruling from the supreme court. basically puts an end to its operation last month. we'll hope to get a little more color from him on that. jeff bezos attending breakfast. no comment on the firephone or whether he would look to buy another newspaper. last year he sewed the seeds that led to a $250 million deal there. more on deals a couple blocks later in the show. there will be a focus apart from tech, apart from media on gee i

geopolitics. secretary of state john kerry, special guest interviewed by charlie rose. that should be interesting about a trip to china he's recently ending and, of course, with everything going on in iraq right now that we're all still watching. we'll have a little bit more for you there. there are a few start-ups here. we'll tell you about those a little later, too. interesting to note that the start-up scene has become so big and such a big business for allen, they started a second conference in march in arizona. so maybe we'll be live there next year, too. you never know, guys. >> a huge statement. the fact sun valley can't hold them all. >> the jv conference. play at the jv. make it there, you get to go to the big leagues. that's what i've been told. >> we go through this. look at the footage of arrivals. watching diller and watching iger and basi bezos or many are

the line. >> the topics, new media versus old media and shifting landscape and content versus distribution, but it feels like this is the year where the deals are happening. where the debate is coming to a head, and where the landscape is shifting, and carl, it's happening at a time where a lot of these executives are on their way out of these companies. nearing retirement age, handing over reins to someone else. a lot of change is going on and a lot of discussions to be had around that. >> what's so interesting, everybody, i think the "journal" article highlighting discovery, someone in talks with scripps. to my mind, your point, who cares. right? the big story, pinterest is there, pinterest do they do a deal with newscorps? much mother exciting deals. what i want to know sitting at the park bench having a coffee. >> fair. although discovery/scripps would be a big deal, no the to give them any -- >> not at exciting, though it. >> kayla, a lot more from you later on. no one we'd rather have in sun

valley for us. kayla tausche at the allen company conference. meantime, a rough week for the nasdaq falling about 1.3% yesterday. posting its worst two-day loss since april. seema mody is there. >> right. a rough couple of days for the so-called momentum stocks reminiscent of what we saw in the month of march. big moves to the up side and down side. after yesterday's sell-off, some of the high-flying tech names are staging a comeback. run through the winners in the social media space. pandora, groupon, twitter fell 7% yesterday, and facebook showing green. also talk internet. amazon expedia as well as cloud computing player, one of the biggest losers over the past two days here at nasdaq. also staging a rebound. among the biggest losers, garmin is the biggest loser on the nasdaq 100, pacific crest citing introduction of the apple iwatch as a potential headwind.

micron tech a stellar run over the past year. up 50 percent mrs. and linkedin among the other losers. you wonder if the volatility in the names will keep traders to the sideline on position themselves into large cap tech, by the way, ibm, hp and cisco all in the green. carl? >> sima modie, thank you very much. john, yesterday was tough. >> yep. >> worse day in a while. we talked to gene this morning. is this typical pre-earnings jitters or not? he believes we're moving into a period where user growth is not enough anymore. monetization, we always talk about it, this is the show-me quarter. people will not forgive those who miss. >> i think they're worried if it rolls over. look at a chart and see it go from 2000, at that 5000 level back now to where it's almost, 500 points shy of that, during which period the price to earnings multiples have gone from 39 to 22. the companies are making real

been. it's been a substantial correction and fixing of what didn't work in 2000, now real companies chaerching the dreams of 2000. with that said, i agree with munster. are some of these companies not on to as big of a thing like twitter we thought we were on to before, other company, infinite markets to go into. >> user growth size? >> right. the revenue is there. doubled revenue. a billion is not fuf for a company of that size. yes, user growth is not there. google, android taking an increasing portion of the market share now. an article out in the united states smartphone pen trashgs 70% of the population. maybe google has gotten what there is to get. >> interesting. weasked munster. monetization worries, is there a stock that crystallizes that fear? his answer, linkedin. do you ay glee? >> yes. that's fair. linkedin probably crystallizes,

is there enough revenue and twitter crystallizes enough users. with new entries, new chat a threat of could overseas players come in and take users before the domestic players can get them. yes. two good crystallizations. >> sweeking of twitter, 90 minutes, over 35 million tweets. 35.6 million people kweet tweeted about the brazil/germany match making it the single sports event ever on twitter. the last super bowl had 25 million tweets. 35 million is a bigger number but this is what it looked like's you can see people across the globe tweeting especially after each goal was scored. faber made a good point. a high-scoring soccer match with seven goals on one side is going to increase the number of moments. you have to tweet. >> absolutely. a smaller portion of users tweeting multiple times. 35 million tweets, last earning, 255 million twitter users. many not as active as others.

5% tweeted three times or every tweeterer tweeted -- a fraction of a time. so the math is a little hard to parse out. how can you get 35 million tweets out of 2 57 5 million people, unless you have highly engaged people. >> high frequency tweeters. >> right. >> cramer's point, world cup may have the quarte help the quarter. do it want it to be episodic? >> brought it up in your interview with costello when out there. hitching their wagon to things and hitched to it, they're annoyed they're hitched to it. annoyed, tweets go everywhere. a bigger perspective of it. keep publicizing these events and they don't happen on a continual basis. how many grammys do you have? >> that are global. truly global. >> or say you do them in every country. there's not muff mass engagement television events. all the news all the time, it has to be. >> fan of the mopub what that means more ad pricing and

inventory. >> revenue front, extraordinary. using their brand and the acquisition engine to create a bigger revenue opportunity than that user base allows. that's what the mobile acquisitioners have bun. tweets into all different kinds of apps, offer publisher is a higher monetization rate. new opportunities and almost like side businesses, really. like google going into an android or google going into a google search thing. going into an ad business. >> investors at 30 and people feel going at 40. we'll see where it ends up over the next few weeks. >> i think it comes down to the user number a big beat and third-party studies saying ahead on engagement numbers. if that comes out well ahead of expectation, a 10% or 20% beat over monthly actives, a think you'll see recovery. not to the high level of the 70s but up a little. quick news alert. phil lebeau in chicago with details. good morning, phil.

>> carl, we always get the monthly data in terms of on time performance for allianz. may numbers out. not a good month for allianz. overall 76.9% of flights on time. a drop compared with may of last year and with april. the top three airlines, usually it's hawaiian at the top. that's no exception this month. hawaiian, 93%. followed by alaska and delta. bottom three, tend to get regional airlines in these bottom ratings, express jet, and envoy air and then southwest airlines coming in 71.8%. one other thing, bags mishandleded, not a good month for airlines. mishandled a higher percentage of bags. that compares with 2.92 in april. carl, back to you. >> a good run on bag, but not surprising to see that number tick up a touch. thanks, phil. when we come back, successful entrepreneur, born or bred? "shark tank's" kevin o'leary asks that question.

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jooshgs markets higher after the big sell-off yesterday. the dow, ending lower today, first losing streak since april 3rd, 4th and 7th. principle of global investors is with us.

317 billion in assets under management. jim good to have you back. >> good to be here. >> a wild ride yesterday. our general question is, typical pre-earnings season worries or something larger? >> just about the earnings season, similar to last time. maybe not at severe as last quarter actually. i think most commentators continue to underestimate the fundamental strength of the u.s. private sector. in particular you've got housing recovering still. not as robust at some hoped but still there. you've got cheap energy. cheap by global standards, and, really, most important long term, innovation and productivity. this is the most innovative economy in the world. those three points to me suggest that there is still further to go in this recovery in u.s. business. >> we're going to get fed minutes this afternoon. you think a hike is more than a year away? some people are saying, q1? >> no. they are. and i think the debate on that within the fomc will be

hopefully quite illuminating on that. that's certainly what people are hoping. my view that the dovish tone at the fed will keep rates pretty low as long as they can. my concern, i look at the unemployment rate down to 1.6%. coming down good for everybody. 6.1 is getting close to that point whether at capacity constraints in the economy. whether in the seventh or eighth innings of the bull market, we're kind of in that territory, but it's not really time yet to think a major setback. >> with labor participation, lowest since 1970. >> that a cloaking device on unemployment where it's at? >> not described as a cloaking event really. socially and demographically, it's not clear how motivated different age groups are to stay and become part of the

workplace. the employment participation has been kind of old lately and not what anybody expected. seeing older people stay in the workforce. employment participation, and in the '50s, '60s, into the '70s, higher than before. whereas, people in their 20s are finding it difficult, perhaps, or slow to get into the workplace. maybe they're thinking about the entrepreneurial things they might do, some of them, though. so it's kind of hard to interpret. we're in territory with all the social change where we've never been before. >> what if we get a situation where inflation runs a little warm, but the labor market, where companies -- instead of raising wages, they increase the size of their pool, and we end up with people not getting raises, but facing more expensive gasoline, food and so forth? >> i think you're actually at the point in the recovery, though where labor becomes more sought after, less plentiful. and at that situation, i think it's very unlikely that that happens.

typically, as you get towards capacity constraints in the economy, you should see some wage push. hasn't happened yet. but i don't think that's going to happen. i do think, though, the danger on gasoline is that the geopolitical situation causes a likely upset in supplies. at moment i'm fairly optimistic. i used to think, if anything, the slight run-up in the oil price in the last couple of months has been overdone. oil is still in plentiful supply, but the geopolitical situation is a new dimension. we weren't so worried about it a year ago. i think it needs to be watched, and it could lead to what you're saying. >> especially given headlines today. final question. >> absolutely. >> say you want to get more defensive. it's not like utilities are cheap, any defense are cheap now. >> look at the large cap tech stocks, since we're in "squawk alley" here, the large cap tech stocks don't look expensive. they're established parts of the economy. there's still skepticism from

investors about staying power. a good place to be. be on the more extreme end of tech, the social media, the app stocks, those will continue to trade in a volatile way. the investor who's not a day-to-day professional needs to be very wary of those. >> jim, an interesting summer. >> very interesting. >> already is. >> very interesting. great fun. >> thank you, carl. over to dominic chu and a quick market flash. >> talk about another industry group that's more volatile. biotechs. what's happening wi ining celge tested for arthritis that affects spines, missing its goal in late-stage trials. celgene will continue the study unchanged based on a recommendation. bernstein an 4ri6r79s remain positive on the stock's outlook. could be why the stock is in the green. currently up about 1.5% despite the more negative-type test results. back to you. >> thank you for that, dom. when we come back, what does

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the nike fuel band, jawbone, fitness wearables mainstream popping up on wrists as way to track your steps or heart rate. you or next guest joins us with a first-ever look into wearable tech. joining us, the general manager of adidas digital sports from san francisco. welcome. >> good morning. >> walk us through the announcement. >> yes. so fitsmart the newest product in our ecosystem and it's very much just a fitness coach you can wear on your wrist where running or working out. it has an onboard heart rate

monitor allowing us to give guidance to the user and help them set and ultimately achieve goals to be successful trying to reach those fitness goals. >> you're wearing one right now. right? >> i have one in my hand. not wearing it, actually. it's right here. >> available in two sizes? retail $199. walk us through the metrics. >> yeah. two sizes, two colors. a black and white. $199. the key point is, it has the heart rate monitor on the back. we have this and other products as well, and the idea here is to bring that heart rate technology down to a more accessible pricepoint and more accessible user experience. that's really the important thing. it also has basic features for runners. so it does speed, distance, pace. cadence. of course, heart rate, from all that we can also give you calories burned. >> paul, why not build this as software on top of android? so much hardware out there now.

the new samsung android watch, wearwatch, a heart monitor built in. some of the stuff you can do with an iphone. why not go into that? based on challenges in the hardware market? >> we actually do have software solutions that provide this experience. we started there, and we'll continue down that road for sure. we launched a mobile application called micoach train and run a few years ago, it has a promise. essentially helping athletes, coaching athletes to get better. it's realtime coaching, and it was initial lay soly a software experience. getting into more deeper experiences sometimes the hardware is a key enabler. not so much an objective for us or a goal in and of itself. it's really an enabling capability for us to deliver this experience or promise of helping athletes get better. >> paul, people who are interested in the future of

wearables as a concepts sometimes argue it has to be about more than just health and fitness. that you're flot going to check your health a gazillion time as day. seemed focused. do you think that's where the cat sgoer he category is headed? >> it's going in a million directions. the category. where we're headed as a sports brands, back to the core of sport. we'll always stay tied to this core principle or core promise of helping everybody understand their potential and then ultimately go and achieve whatever their sporting or fitness objectives are. our focus is always going to be back to sport. i think the industry, as i said, it's spreading in a million directions. i think that's what's interesting about it, but clearly for us as a sports brand, we have a place and an point of view that is relevant to our consumers. >> is this set up to be a competitor to the iwatch or would you imagine they'd be in a different business? >> i think they're dercht lydefn

a different business. we are very much committed to athletes at all levels. the everyday athlete in this case, but i do believe that, again, our focus is on providing these solutions. these solutions could take place in hardware, with software. could take place on third party platforms or devices as well. it's really about that promise of helping to make athletes better. how we deliver it, there's multiple ways to do that and right now this piece of hardware is one of those ways we'll do that. >> and, paul, the device has a heart rate monitor and accelerometer tom track movement. the tent of the sensors in the device? >> sensor, simple. enough to be able to understand you, basically. the product tracks you. >> yep. >> and as well as what you do. i think that's kind of the fundamental difference. that it's really -- important that we understand your body's response to the work you do. not just what you go do. so if i go do 10,000 steps today

and you do 10,000 steps, it's not the same. the training effect is different for me than you. so it's really that heart rate, that workout intensity that's unique or individual, and we use that as the basis for all of our guidance and coaching. >> finally, paul what does it mean that you're making a stand here on health wearables and nike is at least trying to separate itself from the hardware part of that business? >> as i mentioned before, we are simply trying to make the statement that our commitment, our obsession or our passion is to help athletes get bet around we'll do that with any technology we think is appropriate. in this case there is hardware, there is software. we may do that -- of course we do it with great footwear and apparel as well. looking for innovation as a way to fulfill our promise to our consumers and to live, to live that sort of vision of playing a larger role in the lives of athletes and really helping them achieve their goals.

>> yeah. there's no question that audience is huge and looking for solutions. paul, we hope you'll come back. thanks. >> thanks for having me. >> the manager of adidas digital sports unveiling the fitsmart. go to get one? >> fairly basic monitoring. accelerator and heart rate monitor, it's built into most devices and get it on android or ios. that's your communication. the sensors are fairly commodity, my opinion. >> seeing how the category differentiates itself. close it out at the uk and continental europe. sessions mixed after three straight days of losses. portugal one of the laggards surrounding a bank, one of the country's largest financial groups, turning into a big story. you see portugal in the rid. and lufthansa shares are higher. issued a property warning last month. the strategy includes cutting capacity growth by 50% this year seeking low-cost long-haul

services to improve profitabili profitability. by the way, american airlines state side raising a forecast for passenger revenue. why a lot of the rarelines are doing so well today. when we come back, are the top aentrepreneurs born or made? kevin o'leary tries to answer that question in a moment. and sounding offer this week, any deals in the making? we will go back to sun valley and check in with kayla to find out. "squawk alley" continues in a minute. moderate to severe crohn's disease is tough, but i've managed. ♪ i got to be pretty good at managing my symptoms, except that managing my symptoms was all i was doing. ♪ when i finally told my doctor, he said my crohn's was not under control. ♪

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yesterday we launched a series with "shark tank's" kevin o'leary. four start-ups in the hot sooet with the shark to talk shop. asking if aun tentrepreneurs arn or made? >> if you're not born with that skill you're never going to be the best of the best. >> i'm speaking more to the risk aspect. to actually face risk, face the sting of defeat, have the fear of failure. is that in your dna? >> yes. it is in my dna. >> what about you? >> i got to have gamble in you. gamble seems to be somebody that exists in kids from a very early age. deeply -- >> for me, let me ask in a different way. do you care if you lose all your investors' money and you fail? >> i'm open to that possibility. >> all right. glad i'm not one of your investors, then. nick, what about you? >> some of both. 's in college i was a big ice

climber, mountaineer. with time, channeled that energy into more productive means but definitely always had that desire to be out there embracing risk. >> i actually didn't see starting a company as a huge risk, because when i looked at the opportunity, and maybe it's the blind nay eaivete, it's not option. you find way to win. >> fascinating. you of all people have to have an opinion on that question. >> i'm thinking, those are brave entrepreneurs. the fact go on and sit with kevin shows they've got a lot of guts to start. right? >> yes. >> i think it's a lot how you're brought up. having kids now, seeing what i grew up watching, in terms of my father, my dad switching from a podiatrist to real estate broker when he was 45. i saw people take risks. it's what you grow up with. >> we're a product of our experiences. >> absolutely. speaking of taking risks, back to sun valley, some of the top names in 3450media and

technology are meeting. big deals happened there including comcast's deal with nbc, our parent and t"the washington post" sale, and what might go down this year. kayla? >> carl, gamble's on a different bit of a scale. talking in the tens of billions of dollars. big deals struck here in sun valley. the seeds seown for executives and top managers here as well all commingling at the sun valley lodge. you mentioned the comcast/nbc universal deal of several years ago. that is obviously one. biggest ones in recent memory. last summer it was that jeff bay se -- besoz, and disney does deals. cap city, abc recently bought

marvel, the comic book company and maker studios in the last year. maker a first time anttendee lat year and fashion designer diane von firstenborg. a lot of fun tore had in the camp for moguls, a summer camp. the deals top of mind from the people and the sources that i talked to here on the ground. number one, univision. what will happen to this company? the spanish language television network bought for about $14 billion in 2007. currently owned by five private equity firms looking for an exit. talking to potential buyers like cbs, like time warner. no bites just yet. i asked whether we could see an ipo of univision soon, he said, don't hold your breath. one to watch. also, could rupert murdoch be

interested in time inc.? newly spun off from its parent company, is a sole media pure play at this point in time, and media industry observers are wondering whether murdoch could be stashing away his cash for a big buy and whether ceo of time inc. would be open to that. they're both here. see if they'll talk about that. and the film magnate looking for a film partner in his tv studios. brian robert, comcast our parent company, chatting with harvey w weinstein. see if that's leads to anything interesting. ipo start-ups here, established companies here. lending club, first data, their ceos are here gunning fon an ipo. consolidation, top of are mind, elephants in the room, figuratively speaking, telco and waist deep mergers at this point, could have implications for the industry.

sheer discovery of communications. >> the questions about consolidation is just that right now we have more people buying our content, because we're not selling to just distributors, but when there's less distributors buying your content, in the traditional way, it were present real challenges. you'll see more consolidation on the distribution side and probably for consolidation on the content side to balance that scale. >> asked what the big media deal would be this year, no comment from zaslov, though he thinks there could be a deal on the table. interesting stuff here. we'll keep you posted. >> very much so. your point about the big deals, the elephants in the room, kayla put it, and the idea that capital will get more competeex over the next year or two. >> those little meets will deals come out of it, to the point kayla made. saying brian roberts at the bar with weinstein last night. could be talking how the

summeral going, but also how's your business doing and these can percolate months later into deals. curious when kayla comes back later in the day, who she saw sitting with who. >> biggest surprises in terms of attendees or those who chose to sit this one out? >> i think it's surprising to see that jack dorsey isn't here, carl. of course, a lot of people thought maybe this would belong-of-the year square would go public or possibly be bought. twitter had a big year last year. here for the last several years. this is the first year i haven't seen him here and i think people are surprised by his absence and everyone's talking about jack ma, alibaba. thinking about spending proceeds from the ipo on. >> looking great, kayla. that live shot, as i said on twitter, a postcard. gorgeous. see you soon. >> you don't mind it, either. >> in sun valley. switching gears for a

moment. actor george clooney seemingly pretty angry over a report his future mother-in-law is opposed to his upcoming marriage for religious reasons. he disputed that. first of all, factual none of the story is true. irresponsibility in this day and age to ex-exploit religious differences is appropriately dangerous. >> we got a story wrong and quickly corrected it. using a freelancer we used before. she had a source she worked with before. so it wasn't like we fabricated a story. when we heard from clooney's people, we took the story down. it's not like having a m & a on this show or wrong insider buyer. it happens and the key is quickly correct it. >> he rarely does this and points it out. son of a news man. appreciates the freedom of the press, but when they do speak

out, how does it ring in the halls of a company? >> celebrities speak out so frequently se lly even if they like stories. we've had advertisers not like a story. the one direction scoop, video of them smoking in a car talking about lighting up a joint, put that joid as an exclusive. they didn't like that. a lot of times people don't like the coverage but like it when it's good. when we're told we've done something wrong, disturbing and inaccurate, we correct it promptly. that's what every news organization does in the age of facebook and twitter and all that. >> appreciate you answering the question. >> of course. and an explanation what he'll doll with all the money. rick santelli what are you watching today? >> sometimes things follow you around. this morning the first thing on my clock radio that woke me up, talking about michael lewis, graduate of princeton. the book i put down last night before i fall to sleep.

ed with with-woodrow wilson. the big number today, 58 million. dune in after the break. financial noise financial noise financial noise

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here to give his best ideas for the freaked out financials just ahead of earnings. waits until you hear how a fugitive accidentally gave him up to police. our worst trade of it the day, all straight ahead on the "half." see you in a bit. a kickstarter campaign, now $70,000. if you haven't followed it carefully, zach brown wanted to make potato salad, started agency a joke to raise money for friends, family and strangers. original goal, raise $10 to make a snack. obviously blown through all of that reaching 70k this morning. here's zach on "closing bell." >> the only rule i know for sure you're not allowed to contribute directly to charities. our goal with this money is to spend all of it on the greater good. working to make the world a better place. >> is this negative net for kickstarter?

does it add some sort of circus-like halo on them? >> pushing boundaries. the first will always work better than the subsequent ones. the $25 level, i'm trying to buy now, is i would get a spoonful of potato salad, a hat and get to go there while he makes it. a fun experiential type of thing. he's not a great chef. >> never actually made potato salad. >> he's at at level, a professional chef, he can buy a recipe from. one of the throttle levels, gotten a lot of the nation's attention this week for sure. >> media. entertainment. amazing, almost like a "seinfeld" episode in the form of a kickstarter. >> over to the cme grouping and check in with rick san fetelli. >> i'm convinced after watching the economy improve, the jobs market improve and i understand improvement is a big word and it can mean a lot of things to a lot of people. in the end, these things improved. no doubt about it, but bad

policy is going to keep the improvement from getting to the point of, you know, escape velocity. not only is it bad policy, it's many powerful people that we look to for answers that defend either bad policy, changing bad policy, they have their opinion, and ideology sometimes trumps intellect. a couple of examples. i told you, princeton. everywhere i looked this morning. so "squawk box," our buddy joe kernen this morning, asking alan krub krueger, professor of princeton, former economic adviser, how he thought immigration will affect the economy. >> immigration reform, tremendous missed opportunity. help in a number of respects. we're going to face a labor shoresage. look at demographics. we're going to be a labor shortage economy and we are facing demand constraints. >> now, maybe alan krueger is looking at the big picture, professor, but defending his views on immigration, or the

administration's, because my big number today, 58 million -- that's the number of working-age americans that aren't working. so to think that the labor market is so tight that we need to look to defend bad immigration policy on this level makes zero sense. now, paul volker. so so suma cum laude, high inflation matter, as long as it's expected. his answer, sure does. if the market's stable, the responsibility of the government, have a stable currency. the stuff you're taught at princeton disturbs me. your teachers must be telling you if you got expected inflation, evy justs and it's okay. is that what they're telling you? where did that come from jl hooray for mr. paul volcker. yes, the man who truly

understanding inflation better than any other, whether fed policy, lack of reform in either, tax policy, bad policy is bad policy it's going to hurt the economy and defending bad policy is about the worst thing you can do. let's be open and honest. whether it's climate change, immigration or, as i said, fed policy. carl, back to you. >> talk to you soon. rick santelli. when we come back, mobile payment technology meets burgers and fries. kre wendy's. why the company is creating its own system different from starbucks, when "squawk alley" continues.

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wendy's is going after millennials. live at the flagship restaurant in dublin, ohio to talk about how. >> hey, carl. with president and ceo. thanks for joining us. appreciate it. >> thank you. >> in my hand a new wendy's app rolled out earlier this year. it does a few things. one thing is does is now mobile payments. a huge win for starbucks. howard schultz says it's made the turnover faster and driven up the average ticket price. what is it doing for you? how ubiquitous? who's using it jvgs we have it in 85% of restaurants, about 4,600 restaurants. the key, high-level usage, mobile ordering, a beta test in five restaurants and that's the thing that's really going to explode in the future, provide tremendous advantages to us as

well as to consumers, and what we see is we're moving from kind of a service economy to a self-service economy. this is what people want. we're responding to consumer needs. >> i want to talk about mobile ordering in a minute. the mobile payment, you don't scan it like at starbucks. you created your own system, you have to give a code to the cashier. why is that? >> you don't actually give the code. swipe it, show the order taker and they take it. we heard from consumers, they don't like passing their phone through a drive pb through and handing it to somebody. 65% of our orders go through the drive-through. hold your phone, maintain control of the phone and show. this will be easier in the future, no coding and handing off whatsoever. >> when will we see that, do you think? >> in tests with that actually later this year. >> the mobile order egg. mcdonald's has an app, you don't have to come into the store. order and they'll bring the food

out to you. how is yours going to be similar and different to that? >> well, you'll be able to place your order remotely. pay remotely. you can either come in to the restaurant or go through the drive-through. it's very, very convenient to use it either way. >> and you told me i think that if you drive up, the restaurant recognizes you? >> you will actually know who you are, when you pull through the drive-through window. thank you for coming here. pull up, take your food and on your way in no time at all. >> technology will make things cheaper, more efficient with the rise in minimum wage, allowing you to reduce labor costs? >> we think it will. allow us in production of handing off the food. take away complexity in terms of the ordering process. a tremendous economic benefit and upside to the consumer because this is the way they want to live and order products. >> you're charting millennials. a funny ad, press's bacon cheeseburger. mr. big, jon secada, boyz ii men. getti getting leverage?

how much is in the millennial age group? >> interesting. 25% of qsr business is millennial. the great thing, 34% in terms of the baby boomers. all of the things we're doing for the ma lillennials have app to the baby boomers as well. >> later, five questions you asked on twitter, and put it to him. while he made me a frosty. back to you. >> thank you so much. jane wells in dublin, ohio. when we come back, "squawk alley" takes flight. a very entry level drone out for a spin, with jon, in just a moment. he thought it was the endn for his dof the conversation.d... she didn't tell him that her college expenses were going up. or that she maxed out her card during spring break. when the satellite provider checked his credit, he found out his daughter didn't pay her bills. but he's not worried. now he checks his credit report and score at experian.com,

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starts at 6:30 a.m. - on the (vo) rush hounose.und here but for me, it starts with the opening bell. and the rush i get, lasts way more than an hour. (announcer) at scottrade, we share your passion for trading. that's why we've built powerful technology to alert you to your

next opportunity. because at scottrade, our passion is to power yours. welcome back to "squawk alley." we have moved outside the nyse where jon's brought at special treat. you're a fan of drones? >> huge fan. absolutely. i think it's very much -- this is a toy but portends the future of robots. >> what did you bring? >> a kickstarter campaign. show the box. called the power's 3.0.

raids 1.2 million dollars. cost $50. paper to fold. make a paper airplane stick a bluetooth controlled motor on it. i can control the throttle, pulling it up and down on this. >> with my phone. >> with my phone. >> go like this. the stale rut sir moving based on my phone. rutter. incredible hard to phone. it i control this and you throw it we'll be better off. >> go wide? >> ready? >> throw it this way? >> let me get the engine going. >> you're right. this is all paper. >> i made it. throw it. give it a good throw. [ laughter ] okay. >> okay. >> right about the hard to fly thing. >> the part about it, i didn't do a good enough job folding the paper. if you're good at making paper airplanes. >> you've flown it before? >> no. did it 10:00 last night in the apartment and didn't want to break things. >> $50? >> look at the youtube video. work on folding it, figure out how to do it.

it's like a project. >> ten mitnutes flight on one charge. 55 meter range. >> you get five different pieces of paper. now i think i'll try to refold and do a better job. >> we 0 should have rehearsed t the. >> won't have done better. >> thanks. over to wapner and "the half." >> guys, thanks. welcome to the "halftime show," barrens 100 financial adviser here, where he sees the best value for your money now. freaked out financials. what banks to buy and what star analyst mike mayo calls the toughest environment in decades. here live exclusively. where investors placing big bets and where you should to. trading on the desk today, ton story all about stocks. bouncing ak following tuesday's steep sell-off and cause for concern, though. financials and small caps have be att