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a.m. at facebook headquarters in california, 11:00 a.m. on wall street and "squawk alley" is live. ♪ ♪ ♪ ♪ ever been close to tragedy close to folks who have ♪ >> happy first day of spring, welcome to "squawk alley," joining us john stein berg ceo of the daily mail north america. good morning to you. >> good to be here. >> jon fortt and kayla tausche on a pretty good day for the markets not far from session highs. dow up 172 points. obviously reclaiming 18,000. s&p reclaiming 2100. nasdaq 5,000, oil getting a rebound as we get option expirations on april and may up

about 3%. a lot of these things are working biotech, kayla, continues to be one of the strong points on the promising conference in nice regarding an alzheimer's drug. >> yeah. undeniable moves in the biotech industry led by biib. my favorite proclamation about the market is that it's a windshield wiper market. that was brincidofovir capital titling a note this morning, one day this one, one day that way. every single day seems to erase the day prior. >> you have the quadruple witching, kb homes with a strong placing number with jarred with a turnaround, nike a strong number, a good consumer number which could be helping out a little bit and the dollar took a breather as well. >> yeah. let's get to mary thompson who is watching some of the action on the floor. >> hey, carl. we were up and away early trading. the dow immediately hitting a triple digit gain. managed to hold on to those about five points or so from the

session highs on what is a heavy volume day. it is a quad witch that means heavy volumes. markets haven't budged from the levels they hit about 10:30 this morning. what we're seeing is strength across the board. the weakness we're seeing anywhere is weakness in the dollar, expected, we're seeing a continuation of that unwipeding of the long dollar short euro trade and also seeing weakness or pullback in the treasury yields. the vix is pulling back too off about 1.25 points. you were mentioning the big story today the s&p one of the big stories above 2100 and the reason for that, the leader is biogen on the positive news in the early stage results of that alzheimer's drug. we see it over 6.5%. a real strong performer among the biotechs and certainly today is a standout. other than that let's take a look at the sectors driving the broader markets higher. energy moving higher, we're seeing gains in oil prices, discretion naresry stocks, big winners with consumer staples

and financials digging deeper into the discretionary story it's all about earnings and outlook and investors all seeing them favorably. nike came in with earnings ahead of expectations. revenue impacted by the stronger dollar. the company gave a disappointing forecast for earnings and revenue for the coming year because of the stronger dollar. the expectation is the company will continue to gain share in what the company called a challenging environment and said it would use every lever at its disposal to make sure it did drive growth during what it calls a challenging time because it's a global company so it's impacted by dollar strength. darden restaurants seeing good performance out of its long horn steak house helped to drive better than expected results, up over 3%. lennar and pulte building on stronger than expected results on kb homes. home builders very strong in today's session. and also consumer staples are looking good here in today's session. no apparent reason that i could tell. we did have uptick in the costs

for these stocks but they've been a little weaker over the last month. a turnaround in today's session along with the rest of the market as kayla pointed out, a windshield wiper market, one day up, one day today. back to you. >> thank you so much. mary thompson. meantime take a look at facebook hitting another all-time high amid optimism about advertising business. stocks getting as high as 83.95. shares have more than doubled since the company's ipo back in may of 2012. i'm thinking back to the week. we have had the news on mobile payment, mobile moving around through messenger. this is a big move for fb. >> the report out sayings the video market could be $3.8 billion in revenue for them by 2017. i think it's very much a video story for facebook right now. a lot of articles out about facebook eating into youtube, vessel eating youtube, all the players. so to me that's the exciting thing. how much app install revenue is in that 69% of mobile revenue. that's the real fragility in the

story right now. >> while having this conversation they tickled the feet of 84 bucks cross that for the first time. i mean, we've talked a lot about facebook and the suggestion i know i've made and i think you have as well, they're in a class of their own. it almost does them a disservice to talk about them as social media. they're a digital media company, they've got almost two-thirds the market cap of google, right now, they're mobile only monthly active users in the last quarter were up 78% to 526 million. so while google is talking about the challenges in mobile and getting less money facebook is growing in that area. you can't underestimate. >> investors don't seem to be understanding the way that they spend their money when you think about the instances where facebook has pulled back over the last 12 months, it's when they've done a big deal or when they've said their expenses are going to go up. even though jon, we get the headlines saying video is working potentially they're moving into payments or at least bolstering messenger as a standalone app. we get those instances every now

and then where the company says yes, we're succeeding, but it takes a lot of money to do this. >> and i think the switching costs across these platforms are lower than people think. take, for example, snapchat which we're a partner with. look at the fact that they had to buy whatsapp for $19 billion which ats the time was 10 to 20% of their market cap. not like they have a lock in they keep forever. they have to keep spending money to protect that for tress. >> bring in jason an analyst with oppenheimer and company talking about facebook. good morning. >> good morning. >> i'm looking at a chart going back to spring of 2013, it has not tested the 200 day. you to go back to the days when it was literally in the low 20s. why is it stubbornly strong? >> look, i think as investors are looking for large cap growth, it's hard to find large cap growth and, you know, if the choice is either this versus google, you know, google is slowing, still has a dominant position, but this is a company who's clear going to continue to grow for the foreseeable future and so when you layer that on

top of these additional legs of growth whether it's, you know, instagram, video payments it makes it a very exciting story for the foreseeable future. >> jason, what occurs to me when you look back at the instagram by certainly that looks like genius doubted at the time whatsapp 2 when you look at the valuation for things like snapchat and consider whatsapp is the leader in messaging doesn't look crazy now. what do you see as the big risks, the big challenges for zuckerberg in the next 12 to 18 months in terms of competitors or in terms of speed bumps that facebook could run into? >> sure. so i mean look, clearly, there's some cannibalization between instagram and facebook, right, so that people appear to be spending potentially a relatively less time on facebook and more time on instagram, yet instagram is not monetizing at the same level of facebook. it is something we pay attention to. i'll cite however in february in

the u.s., minutes did accelerate so in january it looked like minute growth slowed to the 20s but in february it accelerated to the low 30s. we kind of have that data point to say okay, they should be okay there. we've also heard anecdotally you're seeing things like gaming advertising on instagram and up to this point, the thought was that, you know, it was very limited the type of we'll call it very high quality advertiser marquee advertisers allowing on instagram. if you're starting to allow, you know, game advertisers on instagram it suggests you're opening up the market and no one is really putting any type of instagram revenue in their models right now. >> and then messenger, jason, which we're still waiting to see how messenger will be monetized if at all. we have the news about payments this week but if what "fortune" is reporting facebook is actually paying the banks to runs these transactions and they're not going to pass that along to consumers.

is this something facebook couldn't afford not to have and how much of as cost drag could it be. >> i mean, you know, there is a lot of value to having a billable information on customers, right. amazon has it. apple has it. google has tried in ways to get it. i think at the end of the day, the big companies want to have your credit card information, your personal information and as a result, we don't know which direction video is going to go, right. presumably they're going to start with advertising but what if they decide to get into the a la carte, you know, selling a la carte video television movies. if they have your billing information makes it easier to click and go. so i think this is not about making money right now. this is about how do you build that incredible mode around yourself. >> what's interesting in your report you lead off with mobile 69% of ad revenue. you don't know cuss on the --

focus on the video. how much of the app install stuff is in there? i was having a debate with somebody yesterday how much clarity they've given or not given around the install ads and how concerned are you? >> we don't know. you can guess. i think in some of their conference calls they've tried to say it's not as much as you all think, but they've never given a specific number. you know, i think what we have seen talking to advertisers is if it started out very concentrated, you know, again, the mobile gaming got a lot of attention originally, we've talked to advertisers in the dating space who said you know what, you know, a year ago, there were rules where we couldn't advertise, but facebook has loosened the rules and we can. i think, you know, i can't speak to the overall level of revenue from mobile apps but i can tell you it does seem like they are diefers fiing among categories which does potentially reduce the risk. >> interesting. we should note as well, twitter within a dollar of its highest

close of the year. see what happens later today. thanks so much. >> thanks for having me. >> meantime so much for net neutrality. hbo showtime and sony jumping into on-line television and they want their web traffic to be a part of a separate lane fast lane that allows them to bypass internet congestion. they've talked to comcast our parent network about having their web tv services classified as managed services. let the debate begin, jon. >> imagine that. eight days, is that how long it's been since the fcc released this report. free and open internet. that's what everybody wants. except hello, we'd like to pay for a fast lane so that you can actually watch this future of tv thing everybody seems to want. come on, people. what we really need is competition, right, so there can be fair price discovery and be sure that comcast or time warner cable or anybody else isn't gouging whatever next generation tv surface wants to compete. you don't want to watch a little

spiraling because you can't watch that show you want to watch. you do need some fast lanes sometimes for the stuff that you want to get to you fast. >> this is deja vu all over again. i remember when we were talking about the managed services thing before the fcc decision came out. if you have managed services and the fast lane and not a slow lane how does that work? one point i want to make on this. i have a suspicion there's a lot of wi-fi issues in the home that people confuse with broadband slowness. the broadband group with the people have into the home is sophisticated and elaborate enough that isn't necessarily the slowdown. one company i'm interested in, home brew, a venture fund in san francisco my friend hunter has this company eero, which is supposed to solve the wi-fi in your home. wi-fi that works of with we've got ruckus wireless recommended to me for fixing the wi-fi in my home by an i.t. guy. i think there's a huge problem there that is often comingled with broadband speeds. >> haven't we all been on a plane trying to get work done using in flight internet and

the person next to you is streaming content and suddenly takes your internet or e-mail forever to load. >> that's true. >> ask them to reset the internet. >> wonder if "downton abbey" is getting to the good part and lose it on the ipad. one of the tweets out of the courts, a calculator you plug in the services you want on the platforms you want and it gives you what your new television costs will be. the new mortgage calculatocalcu >> all the cable executives want to say you're better with a bundle. most are spending 125 bucks for broadband and the channels. you can do a lot of a la carte before you hit that level. i think this is the future. it is happening so fast right now. every one of the companies is doing it. >> if you haven't tried that and try and click every single one and you want access to every single channel that's listed in that matrix it will push you above 100 bucks and the average cable bill is 66 bucks. it is more expensive. >> makes me want to tear my hair out, and i can't, which

frustrates me more. we need to be talking about the real issue here which is that we want fair prices and we want good service for these things. i mean you can add up all you want, but if you've bought these outside services that you have to stream over the free and open internet guess what, you're not getting them in 4 k. probably not getting them in 1080p. >> stick around for a bit. >> yep. >> amazon got permission to start testing its drone deliv y delivery. how long until it's a reality. we'll talk about that. commuting to work in the bay area became a little more luxurious. go inside the new bus service that provides wi-fi, snacks, lattes and even office space, finally google's new anti-trust problem how the search giant skewed results to favor its own services. re/code's kara swisher will weigh in. dow up 179. "squawk alley" is back in a minute. there's a difference when you trade with fidelity. one you won't find anywhere else.

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welcome back to "squawk alley." the battle of mall operators heating up. shares are taking a beating as simon property group raised unsolicited takeover bid calling it the best and final offer. that bid now stands at 95.50 per share in cash and stock up from 91. they rejected the initial offer adopted a poison pill takeover defense and macerich did receive the latest offer and will review

it. >> we'll watch that one. thanks so much. amazon's idea for delivery by drone got one step closer to reality. the faa gave them permission to conduct test flights of drones outdoors. flights have to be kept at 400 feet or below only fly in the daylight, pilots must hold at least a private pilot certificate among other rules. they're going to do this in rural, private land in washington state, john. cramer's argument was you don't buy the stock on this but it's exciting. >> yeah. it's exciting but i think it will be a long time before it has an impact in the united states. i think some of the overseas markets particularly india, where amazon is looking to grow are probably going to be more receptive because they don't have the rogue infrastructure the address system we have here in the u.s. it's important to at least know what dangers and risks are along with this and start to get people comfortable about the right things or worried about the right things. >> amazon's head of public

policy warned faa jobs and investment would go outside the united states if they weren't aloud to test these in some form or fashion. is this limitd for what amazon wants to do? >> i think it is limiting because it does need to be in line of sight and commercial is not where the issue and danger is. amateurs flying these in suburban neighborhoods in around without things of that nature are the problem. >> amateurs like myself. i interviewed penny the secretary of commerce at south by southwest and the department of commerce is doing a whole hearing and a whole kind of call for questions around drones now as well. i think this is one of these things that people thought was so silly, ridiculous and is going to end up being huge. i'm convinced you will walk out on the street in a few years and they will be whizzing overhead and a huge efficiency and deliveries and cars are more dangerous. >> is that going to be a rural or urban story? >> i think it will be everywhere. i don't see why this wouldn't be in urban areas. cars, people doing cross walks more dangerous than these if

regulated, a company sophisticated as amazon doing it. planes flying overhead all the time. >> but there are people in the planes and people in the cars so there's kind of a mutual assured destruction factor there. if you have a drone fall out of the sky and hit a kid, there's nobody in the drone. but you can imagine the headlines. >> but -- >> drone is carrying fall out of claws. >> through this with uber, self-driving cars. accidents happen no matter what. driving is one of the most dangerous things. you're much more likely to get hurt in car accident than a drone falls out of the sky. >> you fly some. how much weight can they hold. >> that's part of the issue. the faa is not distinguishing between 45 pounds and under. many of the drones we're talking about are lighter, 5, 6, 7, 8, 9 pounds. the faa needs to be more specific, collaboratively with the sector. dji which is in sengen, unicorn now, multibillion dollar company that seen revenue go up by multiples over the past few

years. it's huge. >> amazon has the lobbying budget to put a proposal like this together to get the license that it needs. do you think it will be harder for upstarts like the one you mentioned to get the same approvals. >> i think it will be very challenging. when you look at all of the regulation they have to face, this is an issue that all start-ups face whether net neutrality or some other issue. the government has to create a level playing field so that smaller companies can experiment and get into this stuff. >> one of the viewers writes in business idea, drone pilot schools. >> you need -- you know, carl, i hate -- it's not funny because you have to have a private pilot lesson the faa said to amazon. it should be drone specific. not as hard to fly a plane as a drone. i can fly a drone, can't fly a plane. i fly one badly. >> not as hard to fly a drone as a plane. >> what did i say? >> the opposite. >> good weekend. >> good weekend. >> yeah. >> daily e-mail north america. >> commuting in style. gone are the days of packed

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commuting to work just got a huge make-over. josh lipton has pimped his ride in san francisco on a leaf bus, the stylish way for bay area commuters to get to work. josh, what's this all about? >> well, kayla, this is not your typical bus ride, that is for sure. free wi-fi, i've got my fantasy snacks, yogurt, blue bottle coffee right here. it's described as a lounge on wheels. here's how it works. you sign up, you find a bus on the map, either by downloading the app or you can go to the leap site, hop on, can your bar code and you are good go. the price $6 per ride or buy a bundle, $5 per ride.

>> definitely a lot more comfortable and it's like price wise right in between taking public transportation and taking a private car, so you don't feel as guilty about doing it. leap has raised $2.5 million from top tier investors in silicon valley, including andresen hor wits and sales force ceo mark benioff. leap's ceo wouldn't say how much it cost to build one of the busses or manage the fleet, but no doubt, it is expensive. >> we're certainly always going to have to keep raising money, especially for capital intensive business like this where you're buying and building beautiful busses. p. >> now, leap does have competition in this space, of course. you've got uber pool, lyft line and another start-up called cheruiyot which started last april. cheruiyot has provided 75,000 rides.

it doesn't have the same bells and whistles as leap but less expensive at about $4 per ride. the bottom line, in a city where it's become very tough to get to and from work the services are providing a real and growing demand here. leap and chariot want to expand beyond san francisco. you could see some privately funded, luxury busses, coming to a city near you. back to you. >> josh, jon fortt here, didn't he just say we're always going to have to keep raising money. gentry fide busses aside sounds like an iffy business model, doesn't it? >> well, i guess it depends on the demand here, jon. he's got five busses in his fleet. passengers we are riding with this morning getting on, we started off at marina, and came up to the financial district. i think there's a lot of people looking for options. it gets it tough getting to and from work and at least the guys

andresen hor wits and mark benioff think this is a good place to make capital right now. >> josh, the risk as with anything is the more people find out about it, the more people want to do it and can afford it, the more crowded and the worst the experience gets. are we close to that risk in san francisco? >> it was tough hearing you. this is just stashgt out as a new business model here. leap is just getting off the ground. as i mentioned chariot around since last spring has done 75,000 rides. we'll see it's just getting off the ground what kind of demand you see from the citizens of san francisco. >> now we know why josh is late to work, still on his way. josh lipton out west in san francisco. straight ahead re/code's kara swisher joins us to weigh in on the controversial trial involving vc firm cliner perkins and ellen powell. dow up 191 now.

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hello, everyone. i'm sue herera. here's your news update at this hour. general motors ceo mary barra is expected to be deposed in october in the lawsuit over recalled defective ignition switches. the list of people to be deposed in texas also includes at least 35 current and former gm

extives. the plaintiffs in this case choose not to pursue or accept settlements. at least 67 people reportdly died in crashes caused by the defective ignition switches. a pilots strike at lufthansa has entered its third day. close to 800 flights are canceled today alone. we have lufthansa haze 180,000 have been affected since the strike began wednesday. europe's budget carrier ryan air backing away from reports. on tuesday the company was quoted as saying they planned to offer cheap flights to and from u.s. cities within the next five years. today, ryan airb says it was a miscommunication. down the hatch, the global liquor giant plans to put alcohol content and nutrition information on the labels of products including johnny walker, smirnoff and guinness. the company hopes that it will help people understand how much they are drinking and reduce the

misuse of alcohol. and that's the cnbc news update this hour. back to "squawk alley." thanks, sue. welcome back to "squawk alley." joining us as he does every friday care are swisher co-executive editor at re/code. good morning to you. >> good morning. how are you doing? >> first up, you've been closely following the trial involving ellen pao's discrimination lawsuit at kleiner perkins. your thoughts on this so far and how it's gone for her and the firm some. >> well, she had a bad week because the judge was questioning whether she had made a case for punitive damages, which is where the real money comes in in these cases. it's a back and forth thing. i was talking to a lot of people, some days depending on the witness, she looks good, some days kleiner perkins looks good. nobody really looks good. i think that's the problem is it's a super complex case. the jury is unclear, it seems like from their questions, exactly what happened here, and

the only portrait you get is a work place that was not run very well and there was a lot of tension and politics between the people at kleiner perkins. so i'm not sure anybody comes off well in this entire case pretty much. >> kara, mary maker described in defendant kleiner perkins is a great place for women to work and that sort of leads to the firm's defense that maybe ellen pao just, as a junior partner, was not the investor the caliber of investor that the firm would like to have. how much of a gray area is that to get into in the court? >> well, i think that's what their case is, she just didn't measure up like a lot of people didn't measure up and they fired men. the issue is why were no women ever brought up to mary and beth seidenberg. why did women never measure up and men get promoted. i think, you know, i guess it's a question of like okay, if they're making the case that ellen is incompetent why didn't other incompetent men get to rise.

good for mary maker at the firm but she's a super talented woman, not just a woman, super talented investor and has a long history and has done well there. so has beth seidenberg another partner at kleiner perkins. but i think the bigger question is, was there a system in place in kleiner where women were judged differently than men. >> one of the takeaways, kleiner didn't handle some of the harassment issues well. that doesn't seem to be in much dispute. >> yeah. >> had some issues with harassment as did ellen pao. i mean what is the takeaway for the venture capital industry in silicon valley after this very embarrassing case for pretty much everybody end vofld? >> remember this is a gender discrimination case and a retaliation case not a harassment. that's hanging over this whole thing is this one particular partner who behaved badly. i think that it's an interesting question. they don't handle it well. there are partnerships

and partnerships are not always known for, you know -- it's not a company, you know, which has much clear hr policies in place. they didn't react as well. they didn't have an hr person. there's all sorts of questions where the policies were and who had them and the confusion around it. so i mean a lot of these firms have to tighten up the policies or they're under threat of being sued and things like that. that's what it is, they're sort of run like it's a little bit of a goat rodeo over at these places. feels like it. and yet they produce returns and do investments. behind the curtain it's not run as well as it should be. >> we're all getting familiar with the phrase manterrupting. >> big issue in kleiner. it's good no took center stage not only at the trial but south by southwest. i'm sure you've seen eric schmidt called out by an employee during a panel for interrupting chief technology officer megan smith of the united states. take a listen to this. >> we know that unconscious bias

research tells us that women are interrupted a lot more than men. and i wonder if you're aware that you have interrupted megan many more times. [ applause ] >> what do you think? are we making too much or not? >> full disclosure i've been [ inaudible ] to megan and may have interrupted her many times. et was such an -- just like the kleiner perkins trial is the illustration of the trial around gender issues and a live version. that was a live version of exactly what happens to women in meetings all the time. here and elsewhere, he was answering questions for her that were asked of her. that was fascinating. and megan, you know, can keep up, but i don't think he understood what he was doing and the woman -- i think the word unconscious bias as i've said many times is an excuse for being lazy and stupid, so i think he didn't realize what he was doing. you could see that as it was occurring but everyone noticed which was fascinating and he

didn't notice in that case. you know, she worked for him maybe they had a different relationship. things have changed, you know, but it was fascinating to watch because i don't think he understood it and yet it was egregious at the same time. fascinating to see. a big problem here in silicon valley. >> yeah. and the 60 seconds we have left, let's stick with google and the journal piece about the ftc apparently thought about recommendations from the staffers to sue them for anti-competitive practices back in 2012. why is it coming out now. what does it mean? >> it got released under a freedom of information act request. it's fascinating. it's interesting because i asked president obama about whether they went at google hard enough and, you know, this is called yelpinterrupting. the staff of the ftc thought they had done the things which is interrupt their ability to do business, use monopoly power, many things people thought the

government should go after google about. they went after them for voluntary changes. google, of course, was thrilled with that. but the staff itself of the ftc did not agree with what the commissioners voted for and that was remarkable and, you know, europe is doing precisely what these f it tc staffers had recommended which is kind of interesting. >> kara, good weekend to you. thanks again. >> thanks a lot. >> kara swisher joining us from san francisco. getting some breaking news as expected. some of these new fracking rules out of the white house, john harwood has that. >> carl, i was just on a conference call with sally jewel the interior ski announcing at the conclusion of a four-year process that involved public comment the final rule on fracking regulations on public and indian land. now this is a fraction of all the fracking operations in the country. the vast majority is on privately owned land. but these new standards would require drillers to disclose the chemicals they were using to set new standards for the types of

fluids that are using and it's all designed to protect the surrounding environment where fracking takes place. it is not expected to have a major financial impact on industry. some estimates have had the impact at about 20 million with an "m," $20 million, of impact on companies. so it's not revolutionizing practices given advances in technology. and sally jewel referred at the -- during this call that states need to now take up the practice of regulating fracking operations on their own privately held lands. that's not what the administration is doing today, though. >> john harwood in washington, thank you very much for that. >> when we come back if you've seen the latest season of "house of cards" a certain russian character bears a strong resemblance to vladimir putin. but has putin noticed. we'll talk about that. rick santelli with the dow up in a tight range today up 186. what are you watching? >> what i'm watching is these

currency markets. the pace or the canadian aussie dollar euro currency swiss franc triple digit gains in the futures markets. what's going on with the fx market. we're going to talk about that and why see man it tings matter on the euro trade after the break. tdd# 1-800-345-2550 [ male announcer ] your love for trading never stops,

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portfolio. the traders have the names that you need to go -- that need to go and those that could be in for a bright pop this season. jpmorgan's kate moore runs a trillion dollars and reveals three sectors she's putting that money to work. shares of tiffany down sharply on earnings and down 20% so far this year but one of our traders isn't scared. he's going to defend his position in the beautiful blue box. coming up on the "halftime report." >> i'll take it from there, thanks so much. we'll be there. what does vladimir putin have to do with president frank underwood? according to the kremlin, nothing. the russian government says vladimir putin does not watch netflix's "house of cards" and has not heard that putin's image was being incorporated into the show. it's interesting because last year, russia actually vetoed the filming of "house of cards" at the u.n. but unclear what this does for netflix's expansion into russia. >> finally something vladimir putin and i have in common we don't watch "house of cards" but i guess we also have that bear

wrestling hobby. >> yes. >> yes. >> and the judo master shirtless thing going on. >> absolutely. >> to the cme group check in with rick santelli and get the santelli exchange. >> hi, carl. you know, there's so many discussions regarding foreign exchange and as well there should be. there has been a big injection in the arm of volatility in the fx markets and whether you like it or not, central banks pretty much should put on the crown for kinging that particular double checker move. and what does that mean for the average investor? that's what i want to discuss. you know, if you're long the dollar index, maybe other than the last several days, you get a check. the last several days may be different. so the notion is, strong dollar. i get it. but here's why semantics matter and i think at least in part a lot of the euro strength outside of potentially a change in that dynamic this week has been mostly due to euro weakness.

let's look at some of the issues that are semanticses but facts. okay. what effects the euro versus the dollar trading. in essence the euro versus anything trade. greece does and that makes sense. a lot of the up move you've been listening to michele today is about the notion that greece is going to get taken care of. i think they will. if they don't suspect i would suspect there would be a big downward move in the value of the euro currency. the other issue is qe in europe. another issue the economy in europe. we often move off of this one, because quantitative easing has a certain set of dynamics associated with it and market moves that at some point, just become synonymous, the natural gas of that, becomes an aroma or odor you can't smell anymore. we get used to it and the economy isn't necessarily synonymous with the level of equities but it's important and

especially the economy x germany. that really is important. the german economy is cooking in greece. look at their budget surpluses. the last one is our very own federal reserve. so let's try to think about this. i think it's important to calibrate. i think before this week's fed statement and press conference, that most of the percentages on what affected the euro currency really were associated with qe, the european economy to the tune of maybe 80 or 85%. now i think what the fed has done is throw some questions into the timetable of tightening and no doubt tightening is a dollar positive. so maybe it's more 65/35. but the reason semanticses are important, is because if the next fed statement gets us back on the notion that we're going to have something going on this year with regard to rate hikes, then the big driving force that may remain in the euro should it go down will show you the true nature of why it's important because it's still going to come down to the european economy and

qe. back to you. >> thanks, rick. up next because of its retail properties around the globe brookfield properties has the true inside track on the state of traditional brick and mortar stores. we will talk to the ceo about his experiences competing with on-line retailers when we come right back. legalzoom has helpedt over 1 million businesses. if you have a business idea, we have a personalized legal solution that's right for you. with easy step-by-step guidance, we're here to help you turn your dream into a reality. start your business today with legalzoom.

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including finance and fashion and technology companies that are traditional brick and mortar stores still competitive. joining us is brookfield properties ceo. >> nice to be here. >> this has been under construction for several years at this point. when do we see the final curtain being raised on this property. >> we're excited next week our grand opening on march 26th and then the culmination of the project will be the opening of a new sacks fifth avenue anchor store in the spring of next year. >> 85,000 square foot. sacks. >> yes. >> that's an incredible space, a big bet on the luxury consumer not only continuing to spend but spending that money in downtown manhattan. how confident are you about that? >> sorry? i couldn't -- >> how confident are you that that's a cycle. >> we're very confident as is hudson bay, the parent company of sachss. what we've seen in the luxury retail arena the urban model has

been thriving, sales of same-store sales year over year have been very positive in the u.s. in particular, and what hudson bay and saks recognized lower manhattan from a residential and commercial standpoint is thriving and directing their efforts in a new prototype for their store, very urban hip cutting edge to a growing residential base and a growing commercial base as well. >> dennis, i believe you investments in brazil, retail, sao paulo, rio, it tell me when you look at how technology is emerging there, mobile technology in particular, do you design a space differently? do you think about retail differently in a market like that? >> whether it's brazil or here at brookfield place in lower manhattan the experience within the store is changing. retailers are getting more and more cutting edge in terms of technology, how it interacts with their customer but in our public spaces, we are wiring our

public spaces to have high level of wi-fi. what we're finding is customers and consumers want to spen a certain amount of time in the store but outside in other public areas and experiences that we're providing. >> not worrying about show rooming. you want people to be on-line in the stores. >> what's happening even with a lot of the established on-line retailers, what we're finding as a trend and we're seeing it here at brookfield place in new york, retail is setting up show room space and stores, and they're still selling their products on-line, primary, but here's a showcase space and what it really is about right now with retailers, particularly at the luxury end of the market, it's all about experience. they want to create a certain experience for their customer, but also they want brookfield as landlord to create an experience outside their store at the steps and that's what we're doing around the world and particularly here in lower manhattan.

>> imagine going back 15, 12 years to 9/11 and telling people this is what lower manhattan would look like in a decade's time. it's amazing what's happened. but there's still concerns about one world trade not filling occupancy, volumes overall, flattening out. are you worried we're in a topee environment on the commercial side? >> no. i think lower manhattan is growing, continues to grow quite a bit. we've had the strongest year from the office leasing standpoint in over a decade so yeah, there was a fair amount of space to fill that's been filled up. we leased 3 million square feet in a short period of time to a very diverse tenant base. what is comforting about lower manhattan the diversity of the office tenant. we're capturing the technology, advertising, media and information service tenants that represent about 50% of the activity in a year-over-year basis. >> we're excited to have more activity in our neighborhood down here in the financial district. we appreciate you coming by.

>> we're looking forward to the high net worth cnbc anchor shopping at our new center as well. as well as dining thank you very much. >> pj clark is there too. dennis, the ceo of brookfield property partners. >> nine years ago tomorrow which five words launched a few era in social media. the answer is coming up.

before we go we have to wish a happy birthday to the very first tweet sent exactly nine years ago tomorrow, march 21st, 2006. jack dorsey tweets just setting up my twitter and the rest, man is that ever #history. >> about 7 1/2 years jack dorsey with tweeted setting up my dollar sign twtr when the company went public. $32 billion market cap today. pretty incredible. >> a lot of vowels ago. >> yeah. i mean at the time, for a guy who was just fascinated with urban activity and the movement of vehicles and cars, i mean it's -- i don't think anyone imagined at the time they were going to change the way communications happen, the way media companies thought and fought for consumers. >> i remember writing for business 2.0 magazine several years ago.

one of the first stories on twitter and i thought, what a silly idea. i was so wrong. >> guys, good weekend to you. >> same to you. >> next week, of course, is stan fisher vice chairman of the it fed speaks monday. that does it for us on "squawk alley." over to headquarters, michele caruso-cabrera. and the half. ♪ >> start me up let's go. it's the "halftime report." i'm michele caruso-cabrera in for scott wapner. today's starting lineup, steve weiss, managing partner of short hills ka tall, jon najarian co-founder of optionmonster.com and tyler vernon chief investment officer of built more capital, kate moore strategist at jpmorgan bank. our game plan looks like this. great, diamonds aren't forever. oh, shares of tiffany under pressure, but one of our traders isn't backing down. we have a diamond die bait. king dollar dell lem