getting news from the "wall street journal" citing sources alibaba, of course, expected to launch that ipo in early august is now going to wait until after labor day. we'll see what the affects may

be on the yahoo! stock. something we're watching closely. meantime, dow closing at the flatline. good morning. 11:00 a.m. on the east coast, 8:00 on the west coast, and "squawk alley" is live. ♪ welcome to "squawk alley." jon fortt, kayla tausche joining us, and good morning, guys. quite an hour with that alibaba news crossing now. again, the "journal" citing sources that ipo will come after labor day. we'll talk about that in a minute. microsoft, big news, a painful, positive step.

microsoft announces up to 18,000 job cuts. deepest in the company's history. 14% of the workforce mostly in the nokia business. stock is up $45 in the pre-market settling back a bit but still up more than a percentage point today. jon, you've been talking about it this morning. next best thing to getting rid of the nokia business altogether? >> hard to call layoffs of that scale that affect people and families great, but from a structural perspective, look, even when two successful companies get together there are layoffs. nokia was not successful. you've got to expect this. look what google did to motorola. cut much more, but did it quietly and gradually. i think there's something to be said for doing this relatively quickly and then the other significant part, the 5,500 cuts here that are not part of nokia. the middle management clearout. i think trying to fix that part of microsoft the culture

involving a lot of political back-stabbing and turf outlined, slowing the company down. if he's able to do that, this will be an important moment. next landmark, who he brings in, elevates those will be key how the company looks for the year end. >> stocks back to the day when you covered public companies. we're not there yet, but -- yes. >> taken long enough. >> yes. was ballmer too soft? >> you wouldn't think so. everything is getting better all the time, but both of their core businesses, office are and windows, are under huge existential threat. going to take a long time, but corporations are moving away. the whole world is changing. we're moving to the cloud. microsoft is under real threat. got news, nadella knows that and is taking strong action right from the get-go. we still don't know the vision, what he's going to do with the company, but this move is a very strong move. >> at least he's outlining what

he plans to do with nokia. only half of the workforce of nokia are getting cut. a huge percentage there to start, though, but people were expecting he would scale back some of nokias production. he is reiterating a compliment to the loomia product with windows products embed and the loomia. it's a shift away from android, but the question here is, whether this will be enough, whether this strategy will pay off. it's one thing to announce a restructuring five years after the last one with 3,000-word manifesto. if this isn't enough what will the next round look like and will people believe it's good for the company then? >> probably in a position he's cut enough at this point. the next thing, again, what are we going to do? it has to be a three to five to seven-year plan. how will we survive this world where our monopoly windows is getting weaker by the day, and even office is under threat from all sorts of free productivity tools, google office are and google docs and so forth. that is a huge pot of profit that is under threat, and no

firing anybody or cutting costs here and there is going to save that. this is a long-term play. >> still some people, jon, feel the apple/ibm deal earlier in the week was because they were nervous about surface tablets make as play in enterprise down the road? >> microsoft has a big kunt in mobile and cloud out of this apple/ibm deal pshgs fe pay attention to ipads, microsoft's got a cloud and office solution on that making them a lot of money, unlike ibm. see what they do there over the next few months. >> enterprise the key. manife manifest, productivity and platform shifting away from the consumer. >> microsoft, enterprise company. where most of the revenue and profit comes from. the good news for microsoft, long-term contracts, done a good job moving away from a licensed model of a single sale to long-term contracts and have a lot of time, but how many office and excel docking are you getting? for me, down by the day. people are moving away from that and windows, we all know, there

are many other alternatives out there and that is moving into corporations. >> all right. with that, time warner still trading higher this morning after we broke the news yesterday, of course, that rupert murdoch's 21st century fox made the bid to acquire time warner. up 17% yesterday. best day since 1998 and today, henry, people trying to establish where the breaking point is in terms of accretion, $100, some say $160 all stock could work? does that seem too many far afield? >> first of all, a great job breaking the story yesterday. tactically. a nice move to go through you to time warner shareholders. all listening. they've gotten, attention piqued. and everyone i talked to, both sides, professing we'd be unhappy with $100, so forth. to me, for now, that is actually looking like a clearing price. everyone's unhappy with it. which means it might actually be the number. >> i tweeted last night, walking in the west village by a

restaurant with outdoor tables. a couple on a date. the guy telling the girl about the time warner news. and she was not interested. not interested whatsoever. that goes to tell you, everybody is talking about this. >> here's the thing. so interesting. business insider, we see what people are interested in, obviously, yesterday big news, time warner, but it is remarkable, carl, how over the last 15 years the attention has shifted in this country from a business point of view, from media, to tech. this is a huge media deal. look at list of assets that murdoch will control if if thets this? it's staggering. yet today, nobody cares. it's all microsoft, apple, google, technology. media -- >> well, faber's point earlier this morning was that tbs and turner are nice but the golden jewel is hbo. netflix is having a field day. >> absolutely. everything's moving that way. hbo is well positioned for that. >> right, but technology is driving consolidation on the

distribution side, when you see comcast trying to buy time warner cable. at&t trying to buy -- the right pipes to get to the consumer, scale begets scale. talked about discovery communications from sun valley, fewer distributors on the whole buying content you need to shift the balance of power. monsters fighting against monsters to borough those words from gamco yesterday. important to have media companies that are even bigger to go up against the distributors as they get bigger and fewer, too. >> no question. >> henry, don't go anywhere. a lot more to cover. when we come back, a former hp chairman, ray lane. ask about layoffs at microsoft, and talking to us about microsoft the hardware future. xbox sales and ebay earnings are out. payments. a great future in payments. "squawk alley" is back in two minutes. but what if you could see more of what you wanted to know?

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ebay numbers are out. profit estimates beating by a penny. stock making a bit of a move after fluctuations, despite the hacking breach, affected revenue, calling the quarter challenging, and income from epayments benefits. nothing came up roses in june.

>> except for paypal. $1.9 billion in revenue up 20% over the year ago quarter. that's quite a big move. you can tell where growth is coming from. no surprise when you see numbers like that why john donahoe is resistant to activists claiming they should split up the company. interesting move by visa, or rather earlier this week. launching visa checkout, basically a newer version of its pay paypal competitor. partners with neiman marcus, pizza hut, a slew of others, to launch the rival. the question, are they try to go at paypal while they don't have a figurehead, david marcus, of course, former ceo just left to go to facebook, and while ebay as a corporate parent seems to be struggling. visa, people say are they too little, too late. stock down 1.5% why ebay is up. the scale of the companies is so different. visa in a year, $4.4 trillion in

epayments. paypal, 180 billion. variable to gain traction with that, that potentially could be a huge threat. >> reflecting the sanctions against russia and some, a lot of the credit card companies taking it on the chin today. your point is well taken. >> important quarter for ebay, after david marcus left the stock dropped, i think. ebay is actually up, what, 5% over the past month. it's recovered some of that. i think some people were concerned how the paypal business would look considering a big executive departure like that. that is what a lot of people are interested in the stock for. so it's good for them, that it's still hanging in, though. up know, down 10% over the year. >> and according -- i've nod read the transcript, according to analysts, they talked, we're open to alternatives on paypal. >> one of the alternatives ought to be, if you're going to keep it, maybe change the name of the company to paypal, because ebay's marketplace business is getting shellacked overall by amazon and others. >> and some say time warner

should change its name to hbo. the crown jewel. you could make that argument for a lot of companies. busy time in los angeles. silicon beach, start-ups on the hunt for new funding, investors looking for the next billion dollar idea. julia boorstin is there. >> good morning. many companies presenting here are local, as silicon beach become as budgetal hub with over 520 million dollars invested in l.a.'s 1,000-plus starup, sales and ipos doubling from the year earlier prp this morning dow jones venture source announced the second quarter was the highest for u.s. investment since 2001 way 21% caste invested from the prior quarter. intel capital, here at the conference, the most active corporate vc investing over 230 companies since 2011. >> right now we're seeing a lot

of interesting technology companies in and around software service companies, ad tech companies as well as new forms of e-commerce. >> now, e-commerce as well as digital content, part of consumer services, the host sector drawing 28% of investment dollars according to venture source. one example, a company calmed woerch, owns sites including the chive, nice kicks and breauxbibbreauobible. aged 18 to 34 men, filling a void for big brands. >> i think woven, one of the things we do really well is whether it's miller/coors, bud wiser, electronic arts or sony, we do a great job of kacreating content that relates back to a millennial awed yaths. coming up on "fast money,"

more on this. >> henry, good seeing you. thanks for coming in. >> thank you for having me. >> founder, editor and ceo of "business insider." when we come back, ray lane has a new project, partnering with google glass. he takes it for a test drive with our own jane wells, in a minute. (vo) watching. waiting. for that moment, where right place meets right time. and when i find it- i go for it. (announcer) at scottrade, we share your passion for trading. that's why we give you the edge, with innovative charting and trading features, plus powerful mobile apps so you're always connected, wherever you are. because at scottrade, our passion is to power yours. can i get my actual credit report... like, the one the bank sees? [ male voice ] sheesh, i feel like i'm being interrogated over here. [ male voice ] she's onto us. dump her.

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it's the worst time to talk about -- >> ladies and gentlemen -- >> [ applause ] google glass on your favorite athlete, see the world through his or her point of view. jane wells in palo alto, a company named by google by one of its glass by works partners and a special guest. good morning. >> carl, a cool technology. one of five official google glass partners, created a technology, how do i look, by the way, where they can stream what you see in your google glass on to a bigger screen and joins me now, ceo john fisher and ray lane, legendary silicon valley, personally invested in this company. the sacramento kings used it,

pacers, philadelphia eagles will use it on the sideline. briefly explain how the technology works. >> thanks for having us this morning, jane. we understand aga rythmically where you're looking when wearing smart glasses. i move like this, like this, we understand at five hits per second on the server what you're looking at and actually understand what everyone is looking at when they're wearing they're smart glasses, if they're on the platform. if you know that contextually you can build on that stream is on to the jumbotron so people can see that player's point of view? >> that and stream while in the o.r. and maybe save a life with doctors and resident collaborating this way. >> how difficult to do that? everybody's on wi-fi. the technology, streaming inside a big stadium? >> it is difficult. the engineering and i have been together many years and i met my wife were 14 years ago, my cfo

and engineer 16 years ago. we've worked it out to be able to do this in high density, which is difficult. >> ray, you've been in this town a long time and involved in a lot of companies. why invest in this one? >> i think we're seeing a, something that hasn't happened in this industry ever, and that's the development of multiple platforms at the same time. typically we've seen mainframes, pcs, wireless technology, develop one at a time in a more serial fashion. now we have laptops, a platform, mobile, mobility platforms, and wearables platforms. three or four platforms developed at the same time and also millennials coming into the workforce and getting purchasing power prp these two things are converging and we're going to see the world change, because they're going to adopt technologies that you and i, you know, may be a little uncomfortable with, because we're used to using older

microsoft. >> people are making fun of google glass. so is this -- is it going to be more of a tool than a consumer add-on? what do you think about that? >> there are more technologies people made fun of than not, and today, you know, look at google driverless car. robotics? when you introduce a new technology, it always is strange to the conventional, to the kind of way you think about things, and it takes a long time adapt to the new technologies. that's why i think the generational change, millennials that have never used the technologies you and i used for year, it's very important. they'll go directly to the new technologie technologies. wear google glad, use smartphones. probably won't sit down an a desktop ever and use an application like an s.a.p. or an oracle. they'll have a whole different way of working.

>> i'm wiring this. you should be able to see john and ray from my google glass using cloud optic. to me this seems like something refs or police officers should use? sort of like a dashboard cam. if you're going to use it in a sports thing, why not have the it for questionable calls? >> we're working on it. what you're viewers are seeing is the ability for the two of us to inherit our points of view by looking in the same direction. imagine what that does for first responders, police and fire, helping fire, know, control an area, and, by the way, we can inherit the point of view not just of another unit of google glad you're wearing but a drone, a low orbital satellite, phones. anything, you name it. >> you have a question? >> i do, jane. for ray lane, we've seen big changes, big moves in the enterprise space this week. the latest these microsoft cuts of 18,000 workers expected this year. this is a swift nokia cut after the acquisition, a management

cut as well. outside of that. what do you read into this about soughtia sought i ii ii soughtia -- satya nadella's plap? >> technology companies have been around for 20, 30 years, even the last 10 years, are rethinking how they're positioning for both consumer and enterprise. and it's hard to serve both markets. and you've seen amazon and google and apple really focus on the consumer, and i think it's forced some of the technology companies that have served the consumer to think more about, well, our place may be in the enterprise. it may be more in enterprise, and i think microsoft has to think through, at their heart, they really are -- they really serve the enterprise. the windows platform. the office platform, it's really an enterprise tool. and of course, xbox and other things are consumer tools but they have to really think about that. i see this announcement this

morning as much more kind of rationalizing the nokia acquisition. >> finally, you sold your last company to oracle. $5 million for funding in this. are you going to sell it? >> are we going to sell it? we're going to look at the best options possible. silicon valley bank is also backed this venture as they have our last three over 20 years and we're sitting with them this morning. we've announced really interesting deals with, of course, pro transport one to do 100 ambulances up north, all using google glass. >> to transmit what a patient looks like to the emergency room while in transit? >> absolutely. >> wow. >> and working on sony smart glass and also talking to the owner of most of the racetracks in the country, able to announce that we'll be providing cutting edge experiences -- >> what about a broadcast jt who needs cameras anymore? >> jane, this is about collaboration. the difference in the way we

play and the way we work in the future is going to be collaboratively. enterprises will do collaborative supplies with customers. entrepreneurs like john that stick to this for the wrong term will see glasswarables, tablets and smartphones basically be part of their collaborative work style and so it will be done in realtime. so the education business will change. we'll see educational institutions in this country within ten years go bankrupt. because they'll have to do it in a much more collaborative online, you know, take courses online. we'll see health care delivery, first responders, done in a much different fashion. and so this will -- this is a profound change that will occur over the next ten years, maybe five. >> thank you so much for joining us. carl? wow. talk about disruptive? going bankrupt because of this. >> jane, thank you so much. our jane wells, joining us this

morning. david fab ser is here at po nine on the alibaba news? >> reported by both the "wall street journal" and "new york times." alibaba and its underwriters, the management team making the sdins in china, delaying public offering at the new york stock exchange by a number of weeks. always an aggressive target, one as far as my checks were concerned, even earlier this week, still hoping to make. that is, getting this company public by let's call it the 8th of august. that no longer the case. aggressive, because relying on quick responses from the s.e.c., typically the case. a great deal of back and forth between the s.e.c. and potential company planning on going public and those back and forths continue. at this point, two turns with the s.e.c. expectation is, there may be more than that, and they dutifully noted and, therefore, have pushed back the initial public offering, because they would have had to get on the

road, kayla, as soon as next week. >> and having questions about the company, when investors didn't get information about the road show that would have had to start next week across the country, and across the world, really, for such an international company, and investors started to think, wait. a problem with earnings? we're expecting to get another quarter of earnings in this next filing. is there a problem with something else in the company we're not getting any of this information, it appears it's just the communication with the s.e.c. taking a little longer than expected. >> that, according to the people i've spoken with, is the reason. we'll see. perhaps mid-september. of course, earlier this week we heard yahoo! will sell fewer shares. 208 million down to 140 million. no word yet on whether that will be made up by alibaba by selling more primary shares into the offering. >> and the other investors deciding to sell more of their shares. >> david, thanks. david faber. with all that, europe closes in about 90 seconds. simon hobbs, nice to have you back, wrapping up the european day. >> great to be back from the beaches. negative territory across western europe.

you can see. a concern about some of the corporate earnings today. a concern about the effect of the russia sanctions as well. meantime, european central bank giving further details of a big review of bank health. 128 banks towards the fall, late october. looks like just two weeks to come through with plans as to how they're going to bolster their resources there, finances, or plug the holes within their balance sheets. clearly it's way off as things stand at moment. some of the stocks, russian stocks, or stocks exposed to russia down on the sanctions. banks, banks, retailers, you can see. still a concern obviously about what's happening in portugal. banco espirito, difficult on debt payments. staggering fall on that particular bank. on the upside today in europe, john malone's liberty media. seen this? buying over 6% stake in the main broadcast, commercial broadcaster in the uk, i-tv, just over $800 million.

buying it from another. two questions, would john malone bid for i-tv outright? they say no at the moment. why raising the cash? does it want to do the deal on pay-tv platform? two questions there. where we are on an even bigger deal potentially. volkswagen denying it is about to make a bid for chrysler. this german magazine suggested that the two controlling families, one that controls vw and portia and the other porsche, buying the automotive, partly because it would want the distribution network here in the united states. chrysler's distribution network to sell more wool, wagon cars, lagging in this country. those stocks down. despite denial, off its highs up

1.5%. meantime, it's angela merkel's birthday. she's 60. >> i share a birthdays with her. how about that? >> do you? well, happy birthday. >> thank you, simon. glad to have you back. thanks to simon hobbs. he led the hearings with fed chair janet yellen, a cnbc exclusive. with our own rick santelli, you won't want to miss this, when we come back. ♪ ♪ [ male announcer ] if you can't stand the heat, get off the test track. get the mercedes-benz you've been burning for at the summer event, going on now at your authorized mercedes-benz dealer. but hurry, offers end july 31st. share your summer moments in your mercedes-benz with us.

michelle ka brab ra caruso. leading to an intraday decline in u.s. averages. malaysian passenger airline according to reuters, with 295 onboard crashed in the ukraine near the russian border citing airline industry sources and interfax, a russian government news agency. 280 passengers onboard. 15 members were members of the crew. there are some reports coming out of intrafax, again, the russian government news agency, about the potential that this airline, air passenger jet may have been shot down. we don't knee. reuters is not reporting that. you can see, there has been an intraday move in the major averages as we are trying to figure out what exactly has happened with this malaysian passenger jet that crashed in ukraine near the russian border where we know there is a tremendous amount of fighting going on because of the situation that arizzing there in the last few months. we'll bring you what we can soon

as we it. that's as much as we know from sources we trust a the this point. back to you. >> sources we trust, key issue there, michelle. ious ly, this news all over the place officer social media. we're trying to vet it careful lif as we can, you can imagine the sensitivity. a crash that's taken place reportedly -- literally in the middle of a war zone. the more information we get, we'll come back to you. >> already subject to the phrases we all know. fog of war. right? so it's hard to know exactly what's going on yet. >> right. thank you very much, michelle caruso-cabrera. dow slipped 50 points. a lot more "squawk alley" in a minute. ♪ during the cadillac summer's best event,

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because the future belongs to those who challenge the present. look at this. a map courtesy of flight aware, of malaysian airlines flight 17. you can see right there where the flight track appears to end just on the border of ukraine. again, if you are just joining us today, the stock is taking a bit a spill on reuters report citing the russian news agency interfax that a malaysian passenger jet with 295 people onboard did crash in ukraine near the russian border saying the boeing plane was flying from amsterdam to kuala lumpur. reuters trying to confirm that report out of intrafax. given sanctions announced by the president yesterday against russia, coinciding with action on credit card makers, on energy

company, obviously a tense geographic part of the planet, and we will have to learn more over the next hours about just what caused th ed this plane to down. with all of that, we'll keep an eye on the ten year, check in with rick santelli in a moment. you're watching "squawk alley." don't go away. if energy could come from anything?. or if power could go anywhere? or if light could seek out the dark? what would happen if that happens? anything.

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points. markets steady until reports came in via reuters sourcing interfax out of russia that a malaysian passenger jet with 295 people has been shot down. a map on flight aware seems to confirm that a flight track does stop suddenly, and i don't need to tell you just how tense that participate part of the world is right now. ten year active. we check in with rick santelli at the cme. rick? >> hi, carl. of course, from everyone at cnbc and all our affiliates, our prayers are with all of the passengers on that airplane and, of course, these things are horrible, and hopefully we'll never have to discuss one again. now i'd like to switch gears a bit, which is difficult. like to welcome our guest. chairman of the house financial services committee. chairman jeb hensarling. thank you for taking the time today, chairman. >> happy to be here. >> listen, yesterday if was all about not having a frat party, at least in janet yellen's terms, and frat standing for

federal reserve accountability and transparency act of 2014. upon the discussion, and were you very heavy-handed, about the rules-based notion of central banking, and janet yellen, i believe one of her first expressions on this discussion was it would be a grave mistake. can you talk about your question yesterday and her -- not necessarily answer. i actually thought there were a lot of counterfactuals she was using to try to dismiss the notion it would be a positive development? >> well, number one, i have a lot of respect for our fed chair. i like her. she's highly qualified for the position. i just agreed with her earlier views as opposed to her latter views. earlier in her career as a central banker in referring to one monetary policy rule in particular, the taylor rule, she says that's what sensible, central bankers do. i suppose she has the right to reverse herself, but there's been ongoing studies for many

years about where does the fed do the best job of promoting long-term price stability and maximum employment? i think the overwhelmi inweight the evidence is with a rules-based policy, and the act that you talked about is very simple. the fed has absolute discretion, absolute discretion, on setting monetary policy. they can change it. they can deviate from it. they just need to sdplin texplae rest of us what they're doing and hold it up to public scrutiny. it's an transparency and accountability, and the entire time i've been in congress i've never known any federal agency to ask for fewer resources, less power, or more accountability. i can almost set my watch by the opposition not in the at least business surprised. >> last question. and it goes into another direction, and that is -- as we get very close to the fourth anniversary of the passage of dodd-frank, it's still not complete, and even

upon completion, does it really take care of the problem, living wills? we heard elizabeth warren talk how it's not going what it's intended to do. give your version of dodd-frank, when it will be completeded, does it matter and what is the future under dodd-frank? >> one, i hesitate to ever agree with elizabeth warren on anything, but i think there's a growing consensus, including the consensus of the president of the united states of america, that dodd-frank did not end too big too fail and too small to matter. so before this congress is over, our committee has done a lot of work on that, but at the end of the day, dodd-frank has ensured that the big banks have gotten bigger. the small banks have gotten fewer. the taxpayers have gotten poorer, and our economy is less robust. i mean, the answer of dodd-frank kind of, through the arrogance and hubris, that it meets incomprehensive complexity with incomprehensible kplesty and low and middle income americans

become collateral damage. they have fewer choices. they're sees products they used to take for granted, like -- now disappearing. >> chairman, we're out of time. next time i want to talk about inversions. thank you. i know you're busy. thank you for taking the time this morning. sara and carl, back to you. >> thank you, rick santelli. trying to keep apprised of the situation regarding this passenger jet, malaysian airliner, that was, crashed near the ukraine border. boeing stock is down, but not out of sync with the general tone of the market. now getting news, response from boeing headquarters saying, "we are aware of media reports and are gathering more information." there's a look at boeing intraday. not the only company we've heard from in the past few minutes. phil lebeau, also heard from malaysian airlines? >> yes. malaysia is saying they've lost contact way flight going from amsterdam to kuala lumpur with 295 passengers. malaysia saying via its twitter

feed it's lost contact with mh-17 from amsterdam, last known position, over ukrainian airspace. it says nothing else in terms of what might have happened with the airplane. interesting, carl, because we're getting information rather quickly. a lot unconfirmed at this point, but we know that malaysia is saying, they have lost contact with this plane. >> this was a 777-200. am i right? >> right. extended range. the ones in a, these do the longest routes and, you know, it's not unusual you're going to fly this from amsterdam to kuala lumpur. >> you mentioned the unconfirmed reports, and anybody who wants to go on twitter can be handed a bevy of theories at this early stage. people, though, are recalling every instances in which a passenger jet did crash over russian airspace, or near russian airspace. most infamously, kaal in the earl '80s. >> a lot of speculation. we haven't confirmed it.

reports you go on twitter, on the internet, reports citing sources in the ukraine saying that this is a plane that was shot down. again, that's unconfirmed, but that's going to get a lot of speculation and a lot of play early on here. >> all right. phil, don't go far. i know you won't. phil lebeau keeping track of the story in chicago. keep your eye on the ten year intraday low of 2475, and we began the morning around 25. so the bond market as well as the equity market, keeping a very close eye on the story. bob pisani, is on the floor, speaking of which. >> with ar cashin talking about this, and, art, the interfax agency reporting around 11:05 eastern time of a malaysian plane down in the ukraine. a quick reaction. dow lost about 50, 60 points, and it's still to the down side right now. >> and you could see a flight to safety, as carl alluded to, yield on the ten year shot right down at 2475. and gold, which was up about $5 at the time, jumped to almost, up $20.

so of that is coming back now as phil and carl speculated a couple moments ago, twitter feed, has a lot of unconfirmed reports in respect was some concern that it may have been shot down which side shot it down? was it the rebels? was it ukrainian government? the guessing right now is that it was perhaps shot down and it was a terrible accident. and that is why the markets are coming back a little bit, because that looks like a horrific accident, as it might be, it doesn't spread the warfare or destabilize things further. >> any passengers plane going gown obviously is a tragedy, but malaysian airplane going down, in the ukraine. it's remarkable. i blinked when i saw that, because, what are the chances of that? happening? >> well, know, after the great mystery of the former tragedy with malaysian air, i'm sure -- that's going to get reviewed. but the key thing will be, was it, in fact, shot at, and/or

shot down? and by whom? and are there -- is there anything about this that can, in fact, spiral out and maybe widen the case? so far, the guessing is probably not. that's why the flight to safety is being retracted. >> stocks down, bond yields down. gold to the upside. that's it from here. back to you. >> bob, thank you. i think we'll going to michelle caruso-cabrera and hk wi hq. >> first video posted to youtube purports to show wreckage, results of the wreckage from this malaysian jet that's crashed near the ukrainian border. we have not verified this videos. it purports the show the wreckage of the malaysian jet mh-17. as art cashin was talking about, the major question the market is asking, is this plane -- was this plane shot down?

so we've had two sources, nother of which we trust say, yes. interfax of russia, a government-known news agency says it was shot down as well as the interior mince sister of ukraine on his facebook page, claims shot down from missile fire, reported by the associated press. once again, also not a trusted source. we have gotten statements from ukrainian government officials in the past related to what's been happening on the border, and some of them have not been truthful. ditto for russia as well. yes, there are reports it was shot down. not confirmed, and not from sources that we trust at this point. back to you. >> yeah. i'm trying to think of the capability it would take to bring down a passenger jet. >> huge. >> we know nothing about the altitude. not an easy thing to do from the ground. >> back to that facebook page of questionable origin from the interior minister, ukraine. saying shout down 10shgs,000 meter, 33,000 feet on this

facebook page. phil pointed out, very large page. 777-200 extended rake. >> and tweeted, we are aware of media reports and gathering more information. so with that, as i said earlier, boeing stock is lower, michelle, not out of tone with the general market right now. >> no. absolutely -- that would make -- it depends why it went down. right? exactly why did it go down? why the market is uncertain at this point and same for boeing as well. wipe did the plane go down? malicious, all the questions we ask with any kind of jetliner crash. 295 people onboard. 15 crew members, at this point. >> a question, michelle when exactly this happened. another report from interfax, of course, the russian government-backed news agency, translated by cnbc europe saying the plane was supposed to cross into russian airspace and what would have been 9:25 eastern

time,automobi a couple hours ags point. do we know when exactly this might have taken place and how soon anyone was notified about it? >> we started seeing reports about 40 minutes ago. waited before we -- more confirmation from wire services that we trusted, before we went on the air. so that's what we know at this point, kayla. we also saw, as carl was talking about earlier, the radar showing the plane just disappearing from the radar, right at the border, and we can probably look and see if there's a time stamp on that and the timing of that as well. >> yes. and should point out, a large part of the aviation world and phil lebeau will have thoughts on this. is it the foreign war air show? a lot of coverage out this week, big orders made? people in terms of responding to this, michelle, globally, are largely out of position? >> excellent point. certainly, and you can be sure, that a lot of the people were probably on vacation as well as a result, because that is such a huge event. phil covered it all day long. so many people were there. you can be sure there were

probably people out of position, maybe even on vacation as we head into summer. so there's going to be definitely a scramble to get everyone in place to figure what has happened here. >> yes. the statement out of malaysian airlines now, which is obviously already had a very, very difficult year. quote, malaysia airlines lost contact of mh-17 from amsterdam. 4r569 note position over ukrainian airspace, don't say to what degree. more details to follow. so with that, michelle, both malaysia and boeing have at least tried to address this directly in the early going here. at least on twitter. >> and certainly a much faster response than we saw earlier from them in the previous horrific crash we covered for so long and still don't know the actual outcome from, but perhaps a lesson there about trying to get ahead of this and explain to people what they know at this point. >> thank you very much, michelle caruso-cabrera covering this from the breaking nug ining new

hq. and the market dropped quickly, and then stayed in a pretty narrow range, as the information on this story is limited. we do expect to learn more over the next couple of hours, but the market doesn't have a lot to go on, other than contact with this jet has been lost. >> and many market observers looking at that ten year, the first security to respond in times of geopolitical concern. we saw that touch lows earlier this morning. right now sitting at about 2.48. that's a level it's been holding fri pretty much most of the morning. >> with that, it's been a generally difficult day. obviously, geopolitically, you have not only the president announcing those sanctions against russia yesterday. tough action for some of the banks, for some of the credit card companies we talk and earlier. for some of the energy companies, and also keep in mind, israel continues to weather various reports about whether a cease-fire would begin on saturday, would begin tomorrow at 6:00 a.m. these incredible photos in the

"new york times" of the rocket that hit the beach in gaza and some of the children killed there. it's been said -- it's been a long time since the world was this dangerous, in general. the ukraine. what's going on in gaza. obviously, iraq is weathering its own crisis. the south china sea has its own issues. geopolitically, the market has had so much to handle, and yet we've been consumed with other things, like m & a. like the fed. and it hasn't responded to some of these things in the way it used to. >> volatility has been surprisingly low in the wake of all of the news that we've seen from various parts of the world. i spent the majority of my week on conference calls for bank earnings and was surprised at the very little concern those institutions were giving to some of the geopolitical concerns. they said they were not seeing vol itty, not seeing clients talking about some of the flashpoints we have seen across the globe, and that they weren't seeing any ancillary affect on

activity because of that. of course, right now you're looking at the cbo volatility index known as the vix. the fear index, sitting at 12.3 right now. up 12% today. still near historic lows, but a big train day move, given what we've seen out of the world, at the russia/ukraine border. >> the vix you'll notice early response. check out gold as well. intraday, had gold suffer some difficult days in the past few sessions. up $24 today to $13.23. not going to be a huge surprise when the stock market handed something as unexpected as this. we should also point out these reports from one of the advisers to ukrainian officials saying, a civilian airliner has been shot down. again, ukraine has accused russia of taking an active role in the conflict in recent days and april accused it of shooting down a ukrainian fighter jet, an

accusation russia denied. the market has a lot to handle and may not reflect in equity at large but some of the narrow instruments like gold and the vix? >> just to bridge that over to stocks, i don't know if we have a microsoft train day, but basically, all of the air that come out of the stock over that announcement of the restructuring massive layoffs, 18,000. it's now up just 0.6%. going one way, now going the other. blackberry back up over $10. lost a lot of ground after the ibm apple announcement, raising concerns about the vie built of its plans to grow in the enterprise. lots of concerns, geopolitically, not actual full-blown crises, perhaps. so maybe a lot of people waiting to see how these things develop, whether they play out and to be in full-blown crises or just

things that are easier to deal with. >> the market was dealing with mixed economic data this morning, but it did see a quick retraction when these news headlines started to hit, but then again, carl, some investors say this would normally portend a triple digit move, and the fact that the dow for its part, down 61 points. the s&p down 12, it does feel that the market at least right now is waiting for more information to decide how severely this may impact the ongoing relations between russia, ukraine and the rest of the world. >> yeah. it's going to be so many cross-currents, hard to imagine the 24 hours ago, our coverage was consumed, of course, with time warner and fox, m & a in general. janet yellen on the hill earlier in the week, but as long as we've talked about when will the day come that geopolitics becomes a driving force in the market jt who knows if its today? it's too early to say, but a while since the market's been handed something like this to digest in a very quick period of

time. >> yet every single strategist on our network when we ask them what could actually drive a pullback in stocks, they always point to geopolitical issues. that can turn on a dime. those situations can change so quickly. there's something that you just can't possibly predict. >> if you're just joining us, we are getting word from both boeing and malaysian airlines they've lost contact with a malaysian passenger jet. 295 people yoonboard, crashed nr the ukraine border. ra reuters first to report this. a long-range extended from amsterdam to kuala lumpur. told the white house is aware of reports, but obviously, the white house, malaysian airlines, boeing, all awaiting more information. michelle ka caruso-cabrera at the newsdesk, scott wapner, with us, the half you'd see at