good morning. 8:00 a.m. at netflix head quarters in loss guys to, california, 11:00 a.m. here on wall street when i said "squawk alley" is live. ♪ ♪ ♪ we had fun with that. welcome to "squawk alley" on a friday. joining us jon steinberg ceo of the daily mail north america,

jon fortt and kayla tausche with us as well. taking a look at the markets, we'll get to "house of cards" in a moment but right now dow is weak. chicago pmi a bit of a disappointment as well. the lowest since 2009. still watching for nasdaq 5,000 this morning. not quite there yet. and the meantime apple is a big story, getting the first big details of the apple watch after tim cook spoke exclusively to british newspaper "the telegraph" telling the paper the watch's battery life will last an entire day and charge faster than an iphone. it's designed to be able to get this replace your car keys, also monitor heart rates, have a special rewards system to get people to exercise. cook went on to say consumers will have an incentive to wear the watch for as much of the day as possible even in the shower. to me the lead might have been the car stuff. your take? >> i doubt it's going to open your car out of the box for most people. i'm not sure that's a leap for me. i think the question is how quickly will it recharge. i have to recharge my iphone during the day because i use it so much. you can guarantee the first people to get this watch will be

touching it all day, probably going to run out of battery within five or six hours. how quickly does that recharge? is the charger attractive? those key things i think will affect the perceptions out of the gate. >> keeping it charged for a whole day doesn't seem like that long when you think of the fitness bands three to fives days, the pebble, which we had on yesterday seven days. >> is it a regular day or tim cook day. the in the article it says he wakes up at 3:45 in the morning. if it's a tim cook day that could make it through a regular person day as well. the big story the note iffycations will have more if filtering. if this is buzzing every time you get an e-mail or primary inbox e-mail it will be too much. it would make it much more usable. >> what do you think we're going to see on the 9 snths. >> pricing. availability. so many options now. rumors on-line about how much the gold one could cost. more specificity. >> and partners. >> developers. >> who's got the apps. the big name companies that have the apps out of the gate.

how exactly will the process work of using apple pay with this. i suspect to see all of that in grand theater on stage. >> precedent for this and the rollout of some of the apps and software that will run on the apple watch, do you get the suspicion it will be largely in beta form, won't be perfectly ironed out for the first few people who end up with the watch? >> my gut tells me it will be a version 2 or 3 that opens up the mass market for this thing if that happens at all. think back to the ipod, president first one out, it was pretty good. the white one with the silver back. >> the click wheel. >> the mini and nano and the price came down a bit and the accessories market opened up. i suspect larger term apple is making money on the chargers, watch straps for activities and selling the watch at a cheaper price. >> the telegraph talking about the car stuff. will be designed to replace car keys and clumsy to fobs used. . >> yes.

>> is there any doubt about this signals? >> no. >> long-term motives. >> and also the wireless opening of different things. we have these key fobs we use to open doors and go into office buildings as well. one of the stats the penetration that ios has in the enterprise, 70, 80% are using ios devices. i imagine after that announcement we may see enterprise stuff as well. come into your office building with your apple watch as well. >> as someone who misplaces her keys often this is exciting for me. to not have to dig through a big purse. i know you guys with your shallow pockets don't have that problem. for women this could be an advantage. >> i'm using my phone to open my apartment. i have the august smart lock. >> you're not every man. >> when you don't have to put your keys in your pocket anymore one less thing. now your phone and wallet. >> but you to deal with security here too. they can make it easy but not too easy. probably a thing where you have go to the dealer and get it worked out. not just anybody passing by with

a watch can figure out how to open your car. >> see what happens when april gets here. "house of cards" season three arrived on netflix and while many have been up since midnight streaming as many episodes as possible our next guest has had a chance to view the first half. james writes "time" magazine's tuned in column and joins us at post nine. what a treat to have you. good morning. >> thanks for having me. >> what's safe to talk about from what you've seen so far? >> oh, god. i don't know what's safe to talk about from last season. what i will say is that the theme of this season, frank underwood, i don't think this is a spoiler, has risen to become president of the united states. there's a saying in politics getting elected president is the easy part. being president is the hard part. that's certainly the case in the first half of this season. >> any -- >> lot more problems. >> remember in "cheers" when sam and diane got together and then it's hard to sustain it once the show tips a certain way. are we in that moment in the

white house? >> you know, honestly for me, i actually find the beginning of season three better than season two. i've always found -- "house of cards" to me it's not great land mark television. not "the soe prprano'ssoprano's >>le really? >> it's a soap, fun washington soap. >> written as well, are the characters as deep do they have as many levels, no. it's as good as the plot and in season two everything too easy for frank. things are harder for frank. >> i think we have video of you bingeing last fight. >> i got up at 3:00 a.m. to watch it. i said the last time i would get up and binge. me at 3:00 a.m. getting up. i made it through about an episode and a half. it was there live at 3:00 a.m. and it opens with a shocker. just like last season. won't say what it was. i think that's part of their technique. start you with a shocker. not there already you come back. >> do they have to start you with a shocker so you don't get bored with as you call it too easy for frank at this point?

>> you know, i think so. i mean, i think that it's the kind shove that it's the plot that sucks you in and keeps you going. also there's a different dynamic in, you know, old tvs used to be driven by get people to tune in after the commercial break. netflix is about to get people to play next episode. that's kind of what drives you through here. >> from an investor's point of view, this show matters if it gets people to stay on netflix who are already on netflix? if it gets people to come to netflix who aren't there already. do you feel like this season is going continue to do that, given that it's already a brand name. people are talking about it. is this going to dot job? >> yeah. i'm not sure that it does the job more than past seasons do but it's important. it is kind of a model that's a little more similar to hbo where it's not so much the ratings as giving people the sense that to be sort of up on things i need to have this thing, i need netflix. >> maybe people who don't watch it. >> compare it to say a marco

polo or alpha house on amazon, still set the standard for shows that are streamed? >> you know, i think it's definitely one of their higher class offerings. netflix is. streamings, quality has been all over the place. marco polo looked fantastic an it was kind of ridiculous. orange is the new black is a fantastic show. it's, you know, still certainly, you know, they're, you know, their flagship show. >> why do you think they did more of a rip from the headlines this season. seems like it tracks more closely to things we've seen in real world politics without giving away too many spoilers. >> for instance, in foreign policy, this is a character so i don't think this is considered a spoiler at all, a president of russia who is very much of vladimir putin figure and i think the show is becoming something more a little bit like, you know, a mean west wing where, you know, it is trying to relate to things that people are seeing going on and you need that sort of for a sense of just

it relates to what's going on out there. >> we saw how long "west wing" was able to keep that story line going. how much gas do you think "house of cards" has after seeing this season? >> you know, i think it's a matter of whether it keeps -- there's always another challenge for a president, particularly one who's just come into office, presumably you're looking at how does frank stay in power, get re-elected. >> mid-terms. >> does he suspend the constitution and become -- i don't know. but, you know, i think that it can spin that story out quite a while longer if it wants to. >> we're all going to catch up, at least try this weekend. thanks for coming in. >> sure. >> when we come back he's one of the top vcs in this country and lately been sounding the alarm about valuations and the ipo market. benchmark's bill gurley will join us in a cnbc exclusive. landmark ruling for the internet. the fcc approving new rules on net neutrality. what does that mean for the average internet user?

kara swisher of re/code has answers. it's a story everybody is talking about. what color is the dress? we're going to tell you why this story is good news for twitter as the shares try to get closer to $50 for the first time this year. "squawk alley" is back in a minute. being a keen observer of the world has gotten you far, 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. another way fidelity gives you a more powerful investing experience. call our specialists today to get up and running.

it's a story everybody is talking about.

what color is that dress? the picture posted on tumbler yesterday with the headline please help me out is this dress white and gold or blue and black. exploded across social media, especially twitter with everyone from taylor swift to the official account for the eu weighing in. for those who say twitter is reliant on big scheduled events like the oscars things like this are certainly going to help. llamas included and buzzfeed who sent out a press release touting their record traffic. >> i think they said 600 some odd thousand concurrent users. looked at the post last night, up to 22 million views. it's culture, entertainment, the modern equivalent of what a sitcom is. >> you can't predict events like this. how often do they come along, do they come along, do you try to benefit when they do? >> how about the retailer. roman originals a british retailer selling the dress for 50 pounds. go on the sound it's like pound the dress. imagine how many -- it looks --

the dress looks blue and back in that picture. >> because it is. that's how they sell it. i can't imagine a british retailer thinking there could be a bigger boost than having kate middleton wear something but this is probably it. >> i actually look at this the other way. i don't think this is great for twitter. i think this is bad because it shows we have nothing else to talk about. >> katy perry, only 50 million followers. the dress conversation has to make me take a xanax. taylor swift, i don't understand the odd dress debate and feel like it's a trick somehow. confused and squared. >> people are following them anyway. the fact that the conversation is about this and not some larger event, the fact that the oscars tweets were way down, shows people aren't that interested in much so we're following around llamas trying to lasso llamas and looking at dresses. >> the broader cultural r ram fycations i think associated -- we're talking maus here. it's what we're worried about, yes?

>> yes. >> you argue it's a net gain. >> i would argue because we don't have something more interesting to talk about, we're talking about this so this is better than nothing. but just barely. >> people usings this as an entry point into the net neutrality debate. remember that time the phone call voted to uphold net neutrality and we used the internet to follow a llama on the loose and weigh in on what color a dress was. >> it's entertainment and it comes in all flavors. the challenge for twitter i started seeing what color is the dress across my twitter feed. doing something purposeful prior to that. >> were you doing something purposeful. >> googling around and couldn't find it and highlights a weakness of twitter. >> on facebook, immediately saw what it was and there was much more robust conversation with people handing it around saying what do you see? i see this, see that. it was harder for me to follow. >> on twitter at least immediately all the tweets regarding how quickly you were going to delete twitter because you couldn't handle the dress

tweets. what does an ad buyer talk to buzzfeed about today? are they happy about this. >> first of all you get a lot of unique visitors and visitors overall, it's a traffic bonanza. the big issue how do you monetize traffic spikes. these things happen with some regularity and even if you don't get something this giant every time you will have hits time after time, like "house of cards." it's absolutely exciting to add buyers, no doubt. >> we'll see if they can manage to create these day to day they might have something. have a good weekend. >> thank you very much. >> good seeing you as always. >> when we come back as the nasdaq approaches 5,000 are we really in a tech bubble? we're going to ask one of the top vcs in the country very vocal on this point, benchmark's bill gurley and will joins us in a moment when "squawk alley" comes back. who are we?cer ] we are the thinkers. the job jugglers. the up all-nighters. and the ones who turn ideas into action.

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welcome back to "squawk alley." shares of medical solutions and technology company all scripps among the worst performers in the large cap russell 1,000 index. reported profits and sales that narrowly trailed some analyst expectations. paul black did say the company's investments were positioning it for long-term growth and optimistic about the sustainability of several key business trades. the shares down by 8% today. back to you. >> thanks. our next guest is one of the top vcs in the game and pretty outspoken lately on start-up valuations. bill gurley telling the "financial times" part of the problem it's become relatively easier to raise money than it is to build a profitable business. let's get straight to the m.i.t. sports analytics conference where our own is joined by bill gurley. eric? >> we're here at m.i.t. the sloan sports analytics

conference. bill gurley here with us. why are you here? you're not a sports sghi i'm primarily here to have fun. i enjoy other people analyze what they're doing at the depth they do here and i'm really disconnecting from silicon valley for a day to be amongst some really smart people in an area i love. they also asked me to judge their business plan competition like a "shark tank" competition. >> not nearly as good as mr. cuban. >> are you getting confused for a basketball player because of your height? >> a little bit. i did play a long, long time ago. >> more importantly look at smaller companies looking for money. a ton of people here, 3100. are we looking at a bubble top? that's the kind of thing you're talking about. these sports data companies are not going to be uber, not going to be google. we're live right now. this is daryl. conference organizer jumping in. houston rockets general manager. we'll get to him later. sos these companies, they're not going to be google, they're not going to be uber, how do you see

this bubble happening? >> well, i don't want to confuse two things, i think sport businesses it's hard i think to do a venture-backed sports business. limited markets. there's limited players. the two companies that have built the biggest franchises in equity value are nike and under armour which are clothing companies, so i think people are doing really interesting things. i don't know if it's a place where venture capitalists are fighting over each other to do their next big investment. >> we have questions in the studios. john, something for us. >> i do. bill, good to see you. i'm wondering if you can put a finer point on what you're saying about valuations lately? i mean, on the one hand there are companies like uber making tons of money by all accounts, maybe not talking so much about the valuation of that kind of a company, what kinds of companies are you seeing out there that are getting funding, maybe getting big valuations, but aren't really building profitable businesses as much? >> yeah. if you look at the detail what i

talked about, it's not specifically valuation. i've been talking a lot about risk and the big problem that's driving the risk is just the large amounts of money that are going into these nay sant private companies. going back 10, 15, 20 years it was very rare for any company to raise more than say $50 million prior to their ipo. now we're cramming hundreds of millions of dollars into companies that are very early stage and you have people that are typically used to investing in things post-an s1, post an ipo process taking on risks i don't think they truly understand. >> what do you see as the outside force that will bring some of these companies down to earth? because about 6 months ago, 8 months ago, aero was valued near $1 billion and all of its assets were sold at a bankruptcy auction this week for less than 2 million. that's an outlier but how easy it is or possible it is to predict what could bring these companies back down to earth?

>> well, i do think one thing that happens is the money that goes in piles up in terms of liquidation preference and eventually that can become such a big weight they can't get more financing. you saw that with aero and fab actually. i think what you're going to see in 2015 is an acceleration of events like that and hopefully maybe if we get five or it ten of those people start acting more sane. from my point of view and it's in my best interest if we don't accelerate the stupidity because if that happens we will have a really big correction. i would rather see something that's more pragmatic. >> bill, it's carl. last year, of course, your warning included cash burn rates, the kinds of things that companies are spending money on in the bay area, for instance. have you seen any come to jesus on that in any way? >> i haven't. i mean i think there was a temporary when me and a few other people jumped on board and brought it up, but the problem is, the amount of capital that

keeps coming into the system, so it if your competitor raises $100 million and puts it into their sales and marketing, you either can choose not to play but might lose market share. everyone has to play the game on the field. if anything, no, i think since we talked about that, i've seen things get worse or get bigger. burn rates get bigger. >> how much you saying the sports community, how much would you say the sports community take from the venture capital community versus the other way around? >> i think it's more likely to be the other way around as they talk about here, the more specific a sport is, the more finite the rules, the easier it is to aplize, to get data on, something like venture capital, even mutual fund investing are far more complex and harder to get at. still, you pick up little things. last year, a professor from harvard, depak, did a negotiation thing with bob myers and daryl moray and when we're trying to recruit an executive out of google now, the amount

you have to pay are getting close to the nba players and so there's something you can learn from that. >> does that suggest there's a bubble in play? >> salaries are a part of the issue. they are sky high. >> thank you for joining us. >> thank you. >> appreciate it. bill gurley at the m.i.t. analytics conference, thank you. >> thanks, bill. all right. our thanks to eric and bill in boston. let's bring in simon hobs as we close in the uk. >> it's another session for which the european markets have made gains. the broad index up now 14% year to date. actually a lot of companies reporting in europe today. the earnings season is delayed in europe. the reuters reporting the best earnings season for 3 1/2 years, fourth quarter earnings out, 15%, 55% of companies beating earnings estimates. air bus record deliveries of jets, british airways owner, doing well on the iberian turnaround and the flights,

transatlantic flights from the east coast here. the big news obviously that the thing we're waiting for is next thursday with the launch of qe, from the european central bank. each day we talk about record low yields in europe and wanted to demonstrate why that is happening. rbs put out a note today, a graphic entitled "panic buying" identified the credit black hole that will exesist in europe because unlike when the fed launched qe here ue is not running deficits. future buying once the ecb is in will exceed supply. that's for bonds from sovereign and corporate. they're talking about what they witness is a general hoarding of government debt in europe why the yields are doing what they're doing. it's a big problem for the pension funds, insurer in a low interest rate environment. what do they buy instead of government debt and stay in the same currency which they have their liabilities. ultimately they think that the european central bank will have to nicely ask some banks to start selling the sovereign debt that they're sitting on,

particularly in, for example, france and spain, where their balance sheets make you about 10% of where they are. that's an indication of the problems that we have in europe for the ecb and that's why rates are so low here partly. we should also mention, of course, that in berlin today, the german lower house on those say so of the german finance minister here he is put through a vote in favor of the four-month extension op the greek deb. he says he will not let the germans be held hostage to the greeks moving forward. one of the biggest questions is whether or not the greeks can actually put the vote to their own house. such is the rebellion within the ruling party. that's one reason why the s&p is up 6% here in february, the resolution for the moment of the greek crisis. >> for the moment at least. thanks. coming up the phone call vo -- fcc voted in favor of net neutrality.

the future over the internet won't be settled soon. re/code's kara swisher will give us her take and talk about her interview with none other than hillary clinton. "squawk alley" is back in a moment. hey, girl. is it crazy that your soccer trophy is talking to you right now? it kinda is. it's as crazy as you not rolling over your old 401k. cue the horns... just harness the confidence it took you to win me and call td ameritrade's rollover consultants. they'll help with the hassle by guiding you through the whole process step by step. and they'll even call your old provider. it's easy. even she could do it. whatever, janet. for all the confidence you need td ameritrade. you got this. so open an account with schwab. and when a market move affects, say, a cloud computing stock you're holding, we can help you decide what to do. with tools that help you see how market activity is affecting your positions. so when the time comes to decide whether to scale in or scale out... you can make your move, wherever you are.

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former president george w. bush. pro-rush withdrawn trucks carrying rocket systems from the front lines in eastern ukraine as the cease-fire deal agreed to this month finally takes effect. fiat chrysler will recall about 467,000 suvs around the world to fix a fuel pump issue that could cause the engine to stall. if affected vehicles dodge durangoes and 2011 jeep grand cherokees. outside north america. if you're look something to spend your money on how about a town. the mayor of a hungarian village is putting it up for rent to bring in cash. for about $778 a day interested parties can rent out all the facilities in the village, some 110 miles southwest of buddha best. that's our news youp date for this hour. back to "squawk alley."

>> thank you. joining us kara swisher at re/code who joins us phon fridays. good morning to you. >> how you doing? >> as you know, big morning on net neutrality. >> yeah. >> setting the stage this week. fcc voting to pass the new rules. we did talk to commissioner ajit pai in the last hour who voted against the measure where he warned us of the fees that consumers could face. let's take a listen to this. >> the fcc explicitly opens the door to billions in new fees and taxes on broadband by subjecting broadband for the first time to the telephone style taxes under the universal service fund. moreover, the fcc completely brushes away the concerns from smaller competitors who are now going to be subject to all kinds of other taxes, state property taxes, general receipt taxes and the like. but most importantly i think is the critical questicompetition. there's nothing in this plan that spurs greater questiontition. >> he said most people have not read the plan, i have.

does he have a point? >> he has a point on the last point he has a fantastic point. the issue, a lot of the swirl around net neutrality does leave out the issue that broadband competition in most areas is almost negligible. it's a monopoly and that doesn't serve the consumer at all. to me that's the major issue despite all these arguments of regulation of the internet. how do we spur effective competitive broadband pricing and that's the biggest problem we've got going. >> does the debate get smarter from here? my frustration as we talked about before, competition seems to be a way to deal with this issue, ajit pai has read it and says there's nothing in here that deals with competition. my concern is, maybe there are things in here that make competition more difficult? >> well, you know, i think the issues around net neutrality get so confused by the various sides. everybody, you know, says they're for an open internet and i think it's the way it's executed how we do this. i think that, you know, i interviewed hillary clinton this

week and she was saying it's a hook to hang it on, this particular way to do it, but probably we need a full act of congress to really sort out how we want to move forward going into the future because the acts that are governing all this are very old and, you know, the internet and everything else and all these things have progressed so quickly we do not have correct laws in place to deal with this stuff. >> yesterday, kara, mark cuban told us the future of the internet is not netflix, not movies, not social networks. do you think that washington is exercising a lack of foresight in what could happen and what could be innovated in the next decades? >> i think you don't know what's going to be innovated. could you have predicted any of this? i don't think you could have predicted netflix and "house of cards" and people using this and not using -- you couldn't. everyone thinks they can but they can't. we have a, you know, our telecommunications acts, we need a very -- a new one and that's going to be difficult to get through this congress or any congress whatsoever. the last one took forever, but it's a really important thing for congresses to address as a

nation of how we want to treat our broadband competition, how we want to spur more innovation, all kinds of things. that's not happening here. >> yeah. you're echos what cuban said on our air yesterday. >> yeah. >> that is who knows what a 12-year-old is going to invent how is facebook going to do oculus rift, google a self-driving car if we're going to truly, i don't know, saying truly make it neutral, is that a problem? >> you know, is it a problem? it's always a problem. this is politics. all kinds of interest at stake but the point to me, the point is to get effective broadband competition as these ever develops so that people have access and bandwidth at rites that are not -- rates that are not subjects to monopolies and due op plies. >> you spoke to the former secretary of state hillary clinton about the lack of women in tech among other things, kara. take a listen to that. >> while nearly 60% of college

graduates are now women, they earn only 18% of the computer science degrees. that's actually less than half of what it was in the 1980s when women earned 38% of those degrees. we're going backwards. in a field that is supposed to be all about moving forward. >> what was the reaction in the room and in the valley, kara, to that? >> these are statistics well known among people in silicon valley. these numbers are very well known. the pipeline is very slow, it's slower than it used to be and not enough women coming through to take these jobs. this is the one area of our economy that's just has jobs everywhere. i think she was making a point that everybody knows really well here. >> one of her lines of anecdotes has been shattering every glass ceiling. other comments she made to that effect throughout her appearance

at the re/code conference? >> you know, it wasn't the re/code conference. she was at another event in silicon valley and i was interviewing her there. she talked about a lot of things, net neutrality, about being for this vote, she talked about enzip ipion -- encripship and women in tech and the lack of -- i think pipeline and sort of not tolerating the kind of behaviors i think she called it locker room behavior that happens in silicon valley which we saw in display in the trial, the cliner perkins trial, and she was talking about how do you change the environment, change the educational system and a number of other tech topics. >> yeah, kara, how is silicon valley digesting that? 15 years especially when i was starting out, these aren't the sorts of issues that tech companies, that cen tour capitalists were tackling it at all. we see it at the vc level, with tinder, snapchat and at the main

big company level, is silicon valley getting good at this or still pretty uncomfortable? >> good at what? treating women well? no. >> talking about treating women well at the very least? >> whatever. i mean i would like for them to treat women well. >> talk about it first, right? >> yeah. >> brings up an issue that wasn't happening 15 years ago. it's starting to happen now. i don't have a sense of whether silly cobb valley is actually getting more comfortable having this conversation? >> well, it's a good question. this trial, we'll see if people -- one person yesterday told me people will have less women there because they don't want to deal with these kind of lawsuits which is inane, most inane thing i've ever heard. i think it's good. to me it's always good to have the discussions and sort of pull the curtain back on some of these practices and a lot of them are just thoughtless, a lot are very thoughtless. in this case, you know, if you're an allen powell's side they're egregious. kleiner's side a different argument about ellen. it will be interesting to see

how this trial turns out. every firm is looking at this and sort of has a mode of there's not a lot here. it's there but for the grace of god go i kind of thing. >> one of my favorite charts "the washington post" looking at corporate board membership across all sectors. there are more men on boards named john, robert, william, or james than there are women on boards period. >> well. >> that's not news. just an amazing stat. >> i think what was interesting. to me the most interesting thing in the cliner trial, i was there yesterday, it took 14 funds before they put a woman on a -- as a managing member which is where the real money is, one it tuple your salary. many women senior partners but not the ones that get the real money. i it took 14 funds until mary maker was given a managing member status in a digital growth fund. >> she's made up for it. >> i'm sorry, no. we need like all the dudes get the money and the women get maybe get more titles.

>> she showed them. my only point. >> i don't know. yeah. >> have a good weekend. >> kara swisher joining us from out west. >> coming up in the market for an electric car? you might be able to get one soon for a big discount. we'll explain how in a moment. first, rick santelli, what are you watching today? >> well, of course, we're going to be watching 10-year rates around 2%. talk a little bit about the data today. and there definitely is an asterisk on the weak chicago. what that is and whether or not it will show up in the national number that we have next week. all after the break. you're driving along, having a perfectly nice day, when out of nowhere a pick-up truck slams into your brand new car. one second it wasn't there and the next second... boom!

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coming up as the nasdaq approaches 5,000, the former ceo of palm has a warning for investors. plus, how he almost ran apple alongside steve jobs. i kid you not. and closing out a blockbuster month for stocks but what now? march forward or fall back? baseball commissioner on plans to speed up the game plus his take on everything from a-rod to pete rose all that coming up in about 15. >> sounds good. see you soon. meantime john harwood sitting down with the chairman of the senate finance committee tackling among other topics a particular interest to the likes of apple and other large tech companies. good morning. >> good morning, carl. you know, with all the disfunkion around things like funding the department of homeland security which looks like it's about to be resolved with a three-week kick the can

continuing resolution to fund that department, i said that with orrin hatch to talk about one of the few things that has thought possible to get done this year and that is, corporate tax reform, but he was not very encouraging when i asked him about the idea the administration has laid out which is to require companies to repatriate their overseas money at a lower tax rate and use that to fund infrastructure programs. here's what orrin hatch had to say about that. >> i think it's pretty well dead. look, that's not the way -- that's a one time shot. he wants to tax the moneys again that have already been taxed in the foreign countries in order to bring them back. well, they're not stupid they're not going to do that and neither are we. >> that's a good sign that corporate tax reform is not going to go anywhere like individual tax reform in this conference. also talked to record rin hatch about politics.

yesterday ted cruz at c-pac the gathering of conservatives drawing the presidential candidates in the republican party and said the real divide is not between democrats and republicans, it's between career politicians in washington and people they don't listen to. i asked orrin hatch if it ted cruz was talking about him? >> no, he's not. i don't think so. if you ask him directly does that mean orrin hatch, if he says yes, i would say tough crap, buddy. >> now he plainly is not too enamored with ted cruz. i asked him as well, carl, whether he would be comfortable with any of the three senate colleagues running for president, marco rubio, rand paul, or it ted cruz. he said you know what, senators don't have a chance in this process and he started praising all the governors running, carl. >> wow. not even hitting them with faint

praise. let's get to the cme group, rick santelli with the santelli exchange. >> thank you very much, john. we all saw the data today. now, if you looked at gdp it was on the light side and when you factor in the second time around the block on the fourth quarter, you end up with 2.4 for the entire 214. once again it reminds me of the famous phrase that we had after the crisis, the new normal. we've seen plenty of talk about 3%, 3.5, 4, 5% growth and we've had actual short-term spats of that. it's the sustainability that matters and i heard many different reasons and a lot of different excuses. but the one i continue to focus on productivity and there's a lot of things that are keeping the buoot on u.s. productivity many manmade we're doing it to ourselves. the 45.8 chicago number the worst since july of '09 i would put an asterisk there because we know about the port strike even though it has been resolved, the

big plummet in new orders from 61 and change down to 42 and change really does underscore that. i don't want to make excuses. life happens, there's strife, and weather, cold weather, hot weather in the summer, but it's important nonetheless. the charts, while i'm talking i want you to see several charts and they're going to start on february 1st of 2012. the first chart is 10 year, minus bunds. it it's at zero. last time at zero was february of 2012. why is that important? for a variety of reasons. look at a ten-year chart. notice where it was. 185. of course the next chart is bunds since the spread was zero you guessed it at 185. the euro 131. now, after you get done seeing the charts let's have a little fun in the last 45 seconds and go to the white board. february 12th, spread at zero now at 1.68. seen 168 basis points of

distance between the two. having said that because, of course, post this period in time we did see 3% towards the end of 2013 and that is significant. so let's look at what we have. we're up 15 basis points only on a 10 where we sit today. down 153 basis points on the bund, obviously that equals the spread around 170, 168 to be exact. t it's done 19 points from the current trade down 15%. why all the math, doing all this? because traders on this floor going into march with the ecb are not thinking they're going to make their biggest bang on the buck on the tens or bunds. they think the home run is going to be on the euro currency and that may be the home run trade because i'll tell you, simon has been talking about on the qe side a lot of asterisks finds the securities but on the currency side that's the leveller. back to you. >> busy week coming up, rick santelli. have a great weekend. rick santelli in chicago.

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with prices on the rise in san francisco, san mateo and santa clara counties some start-ups are setting their sights across the boy. josh lipton is live in oak town with more. josh? >> well, jon, a few years ago,

the idea of a start-up moving to oakland, california, might have seemed far fetched given the high rate of crime in this city, but that is changing. i'm in the headquarters here of a start-up called captricity which calls oakland home. it's not alone. the red hot real estate market in san francisco is motivating start-ups to think about coming here to oakland. the difference in the cost to rent office space is huge. in downtown oakland, the average asking rent is now $34 per square foot. in downtown san francisco, it's $65. >> definitely cost is a pro an advantage, less expensive in oakland. it's sunnier here in oakland so i think that's a good advantage. it has a real authentic feel. the start-ups tend to like that, that creative space that oakland has to offer. >> now, vcs put more than $1.2 billion to work in nearly 100

companies here in oakland last year according to the money tree report. that made oakland the seventh most popular spot in the country for vc investment behind seattle, but ahead of chicago. still, oakland does face some real challenges before it becomes the next tech hub. the most glaring problem is crime. oakland does have the highest robbery rate in the state of california according to the latest data available from the fbi. so no surprise the pool of tech start-ups is still relatively small here. but economists say you can expect more start-ups to move here to oakland as surrounding cities just become too expensive. that average asking rent in san francisco is now more than double the national average. carl, back to you. >> fascinating wrinkle. like suburban sprawl, only in tech. josh lipton. why sales of used electric cars are rapidly losing their charge in a moment. anything?

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abusive users on the heels of competitor facebook launching tools to support suicide prevention. we know, of course, what a priority this is for twitter after the memos that dick costolo wrote saying we've not done as well as we should. >> you have one phone number you can use a phone number to sign up for twitter, can't create multiple accounts, can't migrate accounts and can't duplicate or hide behind one of these. jon, do you think this creates a hurdle for people to sign up if you have to attach your phone number to it? >> i don't know that it creates a hurdle but i don't know that it grows immediately the top line as far as user growth goes. it certainly would keep certain high value users who are being has rased on twitter from leaving. those are the content creators, very important for twitter, strategically. this is one important brick in the wall that they have to build but not the whole wall, of course. >> but certainly an interesting development as the company works to combat what some have called

twitter's biggest be stacle. meanwhile prices for used electric cars are reportedly dropping precip doesly. tax credits, battery concerns and cheaper gas are conspiring to limit sales of electric vehicles coming off their leases interestingly. the journal citing national auto dealers association stats that electric cars depreciate almost twice as fast as gas powered piers. we know that a car starts depreciating as soon as you start driving it off the lot. the technology of electric vehicles changes that much more rapidly than the gas powered counterparts. >> reminds me of battery drain. if they're depreciating that much, you have to wonder why, how much has to do with cheaper gas and just well, you know, i'm not necessarily going to get one of those for my commute right now. the demand is not as high as a if glass was $4 a gallon. >> tesla, for all the attention it gets in a year, down 9%.

hasn't busted above the 200 day since december as people begin to worry about the distribution network and things likes this. interesting week ahead. more things coming next few days as we begin march. that does it for "squawk alley." back to headquarters, wapner and the half. . >> welcome to halftime show. stephen weiss managing partner of short hills capital, josh browns the ceo of ritholtz wealth management, jon najarian co-founder of optionmonster and dave kudlows is the ceo of mainstay capital. our game plan, bubble watch. the former ceo of palm on why trouble is brewing in it tech and how he almost ran apple alongside steve jobs. hard ball, the baseball commissioner on speeding up the game, all things a-rod and whether he's about to bring back pete rose.