good morning, it is 8:00 a.m. here at one market in san francisco. >> and it's also 11:00 a.m. here on wall street and squawk all li is live. ♪ ♪ ♪ ♪ that was our little nod to "mad men" the season finale

airing this sunday. but joining us this more is kara swisher, co-executive editor at re/code, kayla tausche is live at one market in san francisco and here with me at post 9, kelly evans. >> good morning. >> netflix shares rallying this morning crossing the $600 for the first time ever. this after reports the company is in talks with jack ma-led masu media bringing its content to china. shares of netflix are up a 78% so far this year. so i mean, how significant is this i wonder? given that i believe it was there have been a couple of episodes of "house of cards" that have run in china. it's very popular. if netflix can figure out how to play nice with the content restrictions in china. >> you raised the most important question right there, john ford. how do they do it? this is a china that goes back and forth all the time on what kind of content it's going to

allow people to consume. this is a very different ball game than just extending to a lot of other countries in europe or in the west where there's a lot of demand there for the taking. >> kara, are you with us? kayla? >> it is an interesting question, john. i mean we were able to get to a point here in the united states where you could get movies and get sitcoms edited to the point where you could resciyndicate them. >> one of the obstacles that keeps being raised is objectionable content. and when you're a content company, how do you so meaningfully get over that obstacle to the point where it doesn't really change the product that you're offering. >> let's bring in kara swisher for your perspective, kara. you're on the phone.

shouldn't netflix be in a position to figure out what might pass must wer the chinese censor and filter their content because of how they handle the data behind it? >> there's a lot of u.s. tension in china, it's not like the first time there's western content in china. there's a lot of history here. it's a big market for them and it would be a big market for anybody. so you have to try. i think they will run into the same problem previous you know fox news and others have changed their content when they were bringing it to china. there's all kinds of things that change once you're there. but that's the way the country is. it's an enormous market. why would you turn your back on that market? >> yeah, it's amazing as well, to look at some of the popularity of shows like "house of cards." which according to the reports,

china's own anti-corruption czar is a big fan of in that country. so you can't watch cnbc, but you can watch "house of cards" in china, generally-viewing public. >> fake corruption is one thing, but real corruption is another. >> look, the share price reaction netflix understandable. china a huge market. investors are probably on the safe side of betting this is a big new space for them. but is $600, crossing that mark now just a banner day for them in general in terms of where the company has gotten. >> it will bring up the question is whether netflix is ripe for a stock split, which keeps coming up for every single earnings call, the speculation if that's going to happen, as the price of the stock keeps happening. international is the name of the game for netflix at this point. and the head of content at netflix said it best this week when he said it's a huge asterisk. you can't be an international company and have china be an

asterisk when it's that big a part of the world. you can't have that you need to figure out how to get in there. whether it's with a partner. i think what's most interesting, kelly, is this positioning of jack ma as gate-keeper. we're seeing these u.s. companies get on jack ma's team because he has what we would perceive as a fairly good relationship in china. given the business that he's built. and seeking council from someone who might have some pretty good advice there. he seems to be tapped by a lot of companies as the way in. >> netflix shares currently trading about $616. that's good enough for a $37 billion market cap. a big news morning for them. let's look at one of uber's rivals. this is the other major news of the morning. getting a big investment, lyft, it's carl icahn, the ride-sharing service, raising $150 million in funding led by a

$100 million investment by enterprises. i believe they're well suited to take advantage of this opportunity and to make lyft an extremely successful company. >> this is so fascinating, kara. what is the reputation and the perception of lyft in the venture capital community? why do you think carl icahn makes them so attractive and is making such generous statements about them? >> i think they're way behind ub anywhere terms of fundraising. so but they've got -- uber. but they've got backers. i think people are waiting to see if it can break out in a way that's highly competitive to uber. uber is rated at $41 billion. the number see normous. $50 billion and this is a much smaller number. so i guess icahn is taking the idea that ride share something a big deal and maybe one of these companies getting bought, it would get bought by google or

someone else working on ride stuff like google. so maybe they can grow that company. it's not a bad bet, the number two in the market that's growing so quickly. still, the valuations are enormous. and the revenues and things like that. he's talking about a big secular shift in ride sharing and in transportation. so he thinks you know, he's betting on the cheaper ones for one he can afford better. it's an interesting way to invest. >> kayla, this is an order of magnitude less than i believe uber's latest rounds have been. they've been more in the $1.5 billion to $2 billion range, as far as how much money they're raising. ? a winner take all market, or is lyft likely it find a suitor from someone in the traditional transportation space, who doesn't want to let uber just sort of run away with it? is that why icahn is making the bet on lyft? >> i think we can all agree that the chasm between lyft and uber is only widening.

especially with the amount of money that uber now has in its coffers lyft feels the need to add to its war chest as well. but there are very few markets where there can only be one player and the fact that this is a new market, yes, it's a market that uber created. several years ago. i don't believe that it's one that there can only be one player in. but i think that quandary that's facing lyft right now is that it needs to figure out if we're not going to be able to compete against uber on scale, how can we compete? where can we compete? and i think that's probably what it will use this money to do. that being said. having such an active investor in your company when you're a private company, i mean i don't think that's anything that any start-up founder found a company thinking, you know at some point i would love to have carl icahn telling me what to do as a private company. i mean most of these companies when they seek to raise money, they want to go and get passive money or strategic money. that's where they go. so this partnership, i will be very interested to see how it

plays out. >> one thing for sure, they should do a little marketing campaign, a little online video with mark andreessen and carl icahn in the back of a lyft together. have a little conversation. >> strange bedfellows. >> that would be great. >> we look at a little bit cynically and say, if carl icahn is getting involved, he probably does have his eyes on a bigger prize and maybe that prize is uber itself. >> investing in uber? >> no, investing in lyft in order to spur a sale to uber some day. >> uber is not going to be buying lyft. that's cooky. i think the question is with what kayla was saying, a ford or you know ford is ford or one of the big, gms, have to get into this ride sharing area. people eventually won't be buying car as much. google, there's all kinds of buyer.

creating a self-driving car, you need a reservation system, so what are the reservation systems right now? they're uber and lyft and there's a whole bunch in china that are really interesting. and india and europe. and but it's still, you know right now, it's uber is dealing with it global and that's a challenge for them. this is probably an enormous amount of money in china to try to win there. but tough market. >> fair point. >> kara, it would be a miss not to bring up the other big deal news, the verizon/aol deal. you fweeted out, any time that aol has been sold, you can call that the mark of the top of the bubble. do you mean that and which bubble are you referring to? >> aol got sold in the last big bubble when everything fell apart. you know, i'm still, i know jen cramer loves this deal -- jim cramer. it seals like a very good sale, you know, i think they talk a lot. i think he's making fun of all

of their phraseology around mobile tech and this and that. and you know i said maybe arianna is going to pop up in my phone telling me -- but i don't know, it's an interesting, it's a good move for tim armstrong and we'll see how good it is for verizon. going forward. >> yes indeed, we will see, kara swisher, thanks, kayla. we'll see you a little later on. kelly, how are the markets looking? >> 50 minutes to go here before noon. i'm used to saying that because of the closing bell. in this context, it becomes a little less relevant. but stay with me, the dow jones industrial average is up about six points right now. the s&p barely positive. the nasdaq up just about 1. we had the monster session yesterday, closed at record highs for the s&p, trying to hang on into positive territory today. keeping an eye on the 10-year as well. shares of pandora sliding as the company lost its royalty rate fight with music publisher bmi. they're down a little less than 3%. coming up on the program, cloud storage company dropbox a

major part of unicorn club, a valuation over $10 million and the ceo will join us in a cnbc exclusive. plus she's the first woman to crack the top ten on the forbes midas list. jenny lee from ggv capital is with us. and alexis ohanian, co-founder of reddit joins us. there's a difference when you trade with fidelity. one you won't find anywhere else. one-second trade execution. guaranteed. did you see it? in one second, he made a trade, we looked for the best price, and the trade went through. do the other guys guarantee that? didn't think so. open an account

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welcome back. reddit announcing a new anti-harassment poll is the company saying it will prohibit harassment against users. it said in a movement that would promote free expression without a fear of retribution. it echoes similar remarks from other social networks this year. twitter ceo saying his company sucks at dealing with abuse online. joining us onset, reddit co-founder, alexis o'hanian. will this work in a network as free-flowing and opinionated as redd reddit? >> yes, the reason i'm so confident is because we polled our users and asked them what they wanted us to improve and this was a top result it turns out the 170-plus million people who come every month want reddit

to be as open a place as possible for people to express themselves and we've set some very, very clear guidelines. this is very much a scalpel, to make sure that anyone who is using the site feels safe and free from harassments. the vast majority of content on the social platforms is good. it's dealing with the outliers we want to stamp out. >> what's harassment? how do you define it? >> very specifically targeting and like perpetually going after an individual with threatening messages that are very specific to their safety or the well-being of their friends and family. this is very different from a gentle ribbing or me making fun of your favorite sports team. it's very specific to what i think any reasonable person would consider to be harassment. we publish those guidelines so our community team that has to implement them will publicly be able to share how they're making their decisions. >> a lot of people are focusing on you guys, as we've seen with twitter and others, this is a big problem on the internet. different companies have adopted different approaches, twitter's

mutant block functions work pretty well. actually. there are some who said for you guys want to adopt some similar kind of ignore feature. what's going to be the heart of this anti-harassment policy? are you going to have moderators? will people get kicked off the site? >> we have basic blocking functionality. we don't have the problem to the extent that twitter does because of the nature of the platform. but we now have very clear set of guidelines for our community team. these are reddit employees to engage. when someone is feeling harassed, they can bring a claim to the community team, they have a clear set of guidelines to identify whether or not it constitutes harassment and reach out to the offenders and say what you're doing is harassments and give them a chance to reform. but if not, move them on and like i said, we're lucky because it's such a small percentage of the site. it's unfortunately a really, bad part of it. >> i want to take a little left turn and ask you about face boom instant articles.

i know you talk about a free and open internet and how important that is, it seems like in this era, certain players are able to carve out these wall gardens, where they have a lot of potential control over the content, how it gets used, the data they have, understanding how people are using the internet and where innovation goes, is this a good thing? or a bad thing? >> well, you know, i do often see facebook as this kind of labryinth, publishers know they're getting so much of their traffic from facebook. when facebook comes to the proposition that says hey come publish your stuff directly on our site, it will load faster. it's very alluring, but it is difficult to navigate. a publisher needs to realize there's a tradeoff. they're telling users, go read our content on someone else's property. i think in the years to come reddit can be a kind of foil to this world. where facebook will continue to probably succeed in this closed environment. reddit can be the antidote that's more open, more authentic and i hope more real. >> alexis, quick before we go,

about your video plans, it sounds like it's going to be a more important part of the site. maybe a part of monetization as well. briefly, what do you have up your sleeve? >> in the last six months we've published a ton of new steps forward in original content. we launched a podcast, a news letter and an original video is another way. we know the trends, you can see mobile or desk top, video is the way people are consuming content. reddit sets the agenda for so much of ha people talk about online this is a way for us to say let's take the great stories to a different level. ask me anything interviews and give them back to the community in a way that i think will really blow them away. >> we love original video, because that's what we're doing here. >> it's a good business, we're asking you anything. alexis o'hannian, thank you for joining us. dropbox, one of the biggest start-ups around, with the valuation above $10 billion, number six on our cnbc

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welcome back, alpha unveiling its new beats music service next month. an announcement spotify is trying to get ahead of, seema mody joins us ahead of this one. >> i'm being told by sources that spotify will be rolling out its new streaming service next wednesday, may 20th in new york. it's going to be called spotify now. this is a clear attempt by spotify, a leader in the music streaming space, to unveil its news service before apple developer's conference where the tech giant is expected to launch its music product. i'm hearing that spotify's updated product will include customized playlists based on activity as well as mood. so if you're sad or happy there's a song for you and a

potential fitness element to it you'll be able to sync your muse toik the pace you're running at. that might be included in this launch or down the road. big take-away, kelly, customization of playlists, there's reports of video being incorporated, we're five days away from the launch. so some features could be changed before that. i'm hearing it will be an interactive streaming service that spotify will be rolling out. john, back to you. >> we'll see what they have in store. i'll be at the announcement on wednesday. let's bring in simon hobbs, for the close in the uk and across continental europe. >> i had hoped to bring you a picket picture of calm, but selling has erupted. selling has i-erupted on the bond market. earlier in the session today we were relatively calm but the selling has erupted on the long end in particular of the bond market. let me show you where we are in the 30-year in germany.

it's the 30-year in particular that's selling off. you see the move on the 30-year is six basis points as you can see and that's the 10-year. what i wanted to show you was the 10-point rise on the 30-year, on the bund. an 11-point rise on the french, and an 11-point rise on the dutch as well. and that obviously has to do with a point being made earlier by jeff rosenberg from blackrock, the chief investment strategist, off inflation the success of the ecb and discounting the idea that the ecb would have to go further than the current qe we have on the cards, that seems to be the story coming later into the session in europe. stocks moving to the down side during the session, perhaps in response to what the euro might do further down the line. notably some of the automotive makers, the exporters, are going down, further gains in the euro against what was the consensus moving forward. meanwhile, within the steel sector, beijing has been defending the surge in its own

exports around the world after the yesterday the european union said it would investigate whether or not they and russia are dumping. it was catch-up for a lot of europe today. we had yesterday the ascension day holiday. some trace are coming back in, notably in austria. trades. good news from roche, it's experimental lung cancer drug appears to double survival rates. have a great weekend. >> important stuff there by the bond market, we'll see how we close here on top of all that today. coming up, she's the first woman to make the top ten of the forbes midas list, jenny lee from ggv capital will join us and the ceo of dropbox in a cnbc exclusive joins us to talk his company's massive valuation, it's worth more than $10 billion. it's number six on our disruptor list. there's some facts about

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i'm sue herera with your cnbc news update. the house has approved a $612 billion defense policy bill over the objections of president obama. the bill provides everything the president asked for, but he and democratic lawmakers are against the measure because it ignores automatic spending caps imposed by congress in 2011 to address federal deficits. jurors in the trial of boston marathon bomber, dzokhar tsarnaev, have resumed

deliberations over whether he should get life in prison or the death penalty. they deliberated for eight and a half hours wednesday and thursday. and italian border police ship carrying 530 rescued migrants arrived in sicily. over 122 were rescued thursday as they attempted to cross the mediterranean sea. and johnny depp's dogs have left australia following orders from the australian government for the hollywood actor to send his dogs back home to the u.s. or face putting them down. the agricultural minister accusing depp of smuggling the dogs into the country aboard a private jet to bypass quarantine laws. quite a tale -- tail they have to tell. back to cnbc and "squawk alley." thank you, sue, coming in at number six on this year's disrupter 50 list, the cloud storage and sharing company dropbox, is a second quarter full of competition. there's apple, box, ibm, amazon

to name a few. but dropbox is buoyed by significant funding and partnerships with gmail and microsoft. now it's partnering with universities, a new strategy to get users in from the ground up. i spoke exclusively with the founder and ceo drew houston in the company's in-house music studio, the mint on the heels of a maiming new partnership with cal state fullerton, allowing dropbox access to the 40,000 students there. >> something i wanted for students in the u.s. have a dropbox account. and the way these relationships start is that you know, huge chunk of the student body is using dropbox, faculty and staff are using dropbox. the way professors assign or give assignments to their students is through tdropbox. so it finds its way from the bottom up and a place like cal state fullerton understands we can give this to everyone and have a lot more, be able to

manage it a lot better alongside all the other services that they offer. so we've got some things, but it's another colleges but we're excited about this. this is all building off of dropbox for business, which is huge push for you guys right now. where are we in the ramping up of dropbox for business and what percentage of your overall revenues are we getting to? >> it's growing quickly. we're opening, we've been opening up sales offices all over the world. building out the sales team. we doubled from 50,000 dropbox customers last year to more than 100,000 now. so it's a huge, it's really quickly growing segment of our business. >> do you think you can argue at this point that you are the safest and most secure cloud storage platform out there? >> yeah. and it's both a combination of the literal security that the product offers and the fact that it's convenient. so a challenge that i.t. has had in the past is that they can mandate the use of something that's never easy to use.

and what happens is, they think they're locking everything down. but what they're really doing, which is even scarier, is that people are then -- if the file server or whatever else you're deploying isn't actually convenient, people sneak stuff out on thumb drives and send stuff to their personal gmail accounts, so it's important to have something that's easy to use and secure and designed to be both. >> part of the announcement is also that yahoo is one of the corporations that has adopted dropbox. i think that investors and people who are familiar with this space, were somewhat surprised to see the partnership with microsoft last year and potential news that yahoo is now a dropbox customer. if only because they are two very large tech companies. you would have thought you would be able to create something like this in-house. what can you offer those companies, they couldn't create even with their expertise? >> companies of all shapes and sizes have tried to build something like this the first thing you learn is it looks really easy, but it's really

hard to do. and we put all this effort into making this, so you have this magic folder or app you can put on your commuter or your phone. under the hood there's a crazy amount of technical investment that we've made to be able to do things like store 50 billion documents, or support hundreds of millions of people saving a billion files every day. these are huge infrastructure and technical challenges and a huge design challenge. how do you take all of that and take that complexity, under the hood and make a product that people really love. >> what about yahoo? and working with yahoo and putting the partnership together where yahoo is now a dropbox customer? what sort of priorities do they have in using your software? >> i think yahoo is a little more straight. yahoo doesn't have you know, a major kpet nrt space. maybe there are things on the margin. there's a little more straightforward. yahoo wants what everybody company wants, a more productive workforce. >> and other players, ibm, emc,

amazon, there are all of these competitive forces that are really putting some pricing pressure on everybody in this space. and i know that you guys have won h a fairly sticky price model for quite some time. how often do you have to revisit that. sn. >> i think we always want dropbox to be affordable. we've never, it's never been our aspiration to be the cheapest. i think companies and individuals find that, people pay for dropbox because it's worth it and actually maybe one of the best compliments i've ever received is someone came up to me, they're like look, every month i look at my credit card statement and the whole thing makes me unhappy except for two things, netflix and dropbox. he said i'm happy to give you money. so that is really i think at the heart of what we're creating value and i think a lot of anyone that's paying for it sees how it's worth it. >> thinking about what happens from here. there are a lot of people who are saying maybe you're farther away from an ipo because of the hiccups that box had.

you're completely different company. and i'm sure you're not cheering what that company went through. but how does that make you think differently about going public. >> the first thing is we have a lot of flexibility. over the years we've raised, a bunch of enthusiastic investors, raised the better part of $1 billion. so that has led us, that lets us do things on our own schedule so we're not in any kind of hurry to go to the public markets or anyone for financial reasons. so that is really helpful to me. so i can spend a lot more of my time. they can spend more time on use solving our users problems. >> drew houston, founder and ceo of dropbox, thank you for joining us. dropbox currently has 00 million users and valuation reportedly near $10 billion. multiple of its closest

competitor, box, which is public. to be able to increase your user base, enrich the experience, bring more corporations on board and keep the pricing power, it's a tall order. and we'll see if houston can do it. when we come back, she's one of the most powerful venture capitalists in the valley and she's in the top ten of forbes midas list, jenny lee from ggv capital leads investments in companies in china and is joining us here at one market coming up next. but first, rick santelli. what are you watching today? >> well i'm going to be watching the markets, we're going to talk about technicals with tens and also ask you what happened with the university of michigan may preliminary survey. it didn't look very good, did it? did you see it? we're going to talk about that after the break. e

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stocks hitting record highs, is the rally for real? or are the bulls about to get spooked? a road warriors in asia getting a firsthand look at young's operations there, could it change the outlook on the stock. and we're whale-watching, good call or bad call? we discuss coming up. . this week we unveil the cnbc's disrupter 50 list, today we remember the ceo of the company

survey monkey. dave goldberg who passed away this month. >> dave goldberg grew survey monk monkey. the board member and survey monkey's temporary executive chairman spoke about goldberg's legacy. >> he had this vision for building up vare monkey into a data insights platform. which is what it is today. and that realization over the last six years is a big plan to take it to the next level. but he debtly was ahead of the curve like he was on so many other things he worked on. dave was fascinated by business models. disrupt certificate such an appropriate term for dave as a visionary and as a leader of this company. he loved taking all available information, synthesizing it and making great business model decision. he saw vare monkey as a data

platform which could disrupt a big multibillion-dollar industry. >> goldberg has been hailed not only as a visionary ceo, but devoted father and partner of sheryl sandberg. >> i think a lot of us wonder when you see the outpouring of love for dave how he had the time to mentor and coach and lead so many people. but as far as leader, he believed in data, he believed in leading by example. he prioritized coaching people and letting them live a life that had balance and prioritizing their family. >> goldberg baked philanthropy into survey monkey, allowing people to donate to charity for each completed survey. the company donated over $6 million. you can find more on my interview with lurie on disrupter.cnbc.com. let's get over to the cme group with rick santelli and the santelli exchange. hi, rick.

>> boy, it's, i have to get used to you in the morning. seeing you at 3:00 p.m. eastern. today is friday, friday and weekends are always a challenge for traders, think this particular weekend is a bigger challenge. and quite simply, all we have to do is consider the following. here we is sit in 10-year note yields around 2.15. we settled last year 2.17. if i had to predict where the market was going to close, i would say 2.17. if we close below it, that's kind of easy. you can give it slippage, you can consider the weekend. but below 2.17, back into positive territory for the year, i would think that's highly significant. the part that's more confusing is, exactly where did the market change direction? everybody knows i like to pay attention to intraday levels, they're important. but the closes are much more significant, especially for larger strategies outside of real minute, five-minute,

10-minute type day traders. and on monday, it was 2.28. on tuesday, it was 2.25. 2.29 the high yield close was wednesday and yesterday's close was 2.23. the only close this week under the 2.24. and that was the double top. at least for a while. now we get into the detailings, let's keep it more simple. when i talk to traders, they want at this point to remain long, looking for lower rates. a far cry from many of the discussions i've had with traders over the last several-plus years. and their reasoning is hard to argue with. okay. especially when you consider totally agrees with my philosophy and that is -- from a global standpoint, things may be improving here and there, but if you look at the big stories of the last couple months, how many times china has found ways to try to stimulate the economy, or make rates cheaper for those who have borrowed and are having issues in that regard -- we look at the ongoing issues of europe

and japan, the united states, the recent spat of data, the second quarter gdp .7 down from .8. high probability of q 1 being a negative revision. all of this is hard to argue with. in the grand scheme of things, that will keep a foot on rates. but what we always seem to lose sight of is what i call the natural gas effect. you know the aroma is everywhere. we've gotten used to it. it's very difficult to say we could just go by that and simple technical and know exactly which way we're supposed to lean. because we have no idea where rates would be without so many issues, not the least of which is, how many are locked down under quarantine, not traded on the balance sheets of central banks. here and abroad. but in the final analysis, i think the global notion of weakness will keep rates down a bit. the one thing i caution, maybe this one time where i would say, the feel of the market seems, though it's still packed with longs, which means that we, if

we would see yields go down, price go up here, look for consolidation. the consolidation range is easy, two to 2.20, where we consolidate. i would look at it from a different bias than the last part of last year, with respect to i still think selling is going to ends up being the surprise every time the charts seem to go through an area that's going to cause some margin reversion. remember, we're all leveraged together. jon, back to you. >> a word of caution. up next, one of the top vcs on the planet. normally based in shanghai, the first woman to make the top ten on the forbes midas list, jenny lee leads investments in joo ming and others. and joins us in a minute. affe, 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

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if you're a chinese tech start-up, our next guest is likely your investor of choice. jenny lee is founder of ggv. she was an early investor in alibaba. now she's betting big with investments on the internet of things and in wearables, to top it off, one of the 100 members on this year's forbes midas list of top tech investors. she ranks number 10, the highest-ranking for a woman in the history of the list. ggv's jenny lee joins us exclusively here at one market in san francisco.

jenny, we're so honored to have you here stateside with us today. >> thank you, i'm very honored to be here. >> we're honored to have you. you've been in so many of these trends in technology. globally, from the ground up. you have such an important vantage point on the chinese market. i'm wondering what you're seeing and where you're investing now? >> yeah. so i think the as i mentioned, i spend of my time in china, eye been there for the last 15 years, i've seen the growth. i think the next five to ten years will be the year of china technology convergence internet. in that sense, so key areas that we're looking at, iot, the internet of things, that's a big area for us, it's an area where you're converging hardware, software, data to create new products, yeah, suitable for the individual, for the consumer and this is where china with the manufacturing strength supply chain, u.s. marketing, industrial design can combine to create brand new start-ups that can change the world. >> we've seen how quickly jao ming was able to capitalize on

the vertical access to the chinese manufacturing economy. you were an investor in jao mingt when they were in steelt mod stealth mode, they didn't even have a phone. >> think for jao ming, what they're trying to do is the fastest-growing fan base economy in the iot space. it has created huge raving set of fans through the mind and spirit of the company. and through that, know great highly performing products that are suitable for the chinese audience and this is a connected via the ford. the ford is the first step in the entire iot strategy that jao ming has. >> jenny, i believe you said that the situation for women investors and entrepreneurs in china actually looks better to you than in the u.s. can you elaborate on that for us? and maybe give your insight into

why. >> yeah, i think that in china the china venture capital market is just 15 years in formation. so it's very early on. and from that perspective, i think the investors who understand how china has grown, how the chinese consumer can behave and spend, i think has a huge vantage point of some investment. so the chinese consumer is responsible for a lot of the purchase behavior at home. they have kids, they buy for their family, they are frequency of purchase on commerce, by apparel is huge and they like to share with their friends, so the woman perspective is absolutely useful in terms of identifying you know what's the app that's going to take off. in the china environment as well, the entrepreneurs, they're not, what they need is investor who understand them, who understand their strategy, who can be with them as they grow. so gender is not the number one consideration. it's expertise that they are looking for to help the company

grow. >> jenny, you mentioned china and i want to talk a little bit of one of your past lifetimes already, as a jet and drone engineer. dji, i guess is the biggest player in the drone space, that's a chinese-based company. where else do you see opportunity for investment around drones in the market today? >> yes, so i'm very excited about drones this is something close to my heart. i designed my first drone 20 years ago. dji is a great company. on the drone space, the drone is what i call this is a start of changes in air transportation. over the next three to five years. consumer drone is just the first category in dgi. you have commercial, amazon, google, talking about delivery. as you go into industrial, as well you know how you use the drones for surveillance, and then into military, so it's a huge market. very exciting and the consumer is now starting to see and feel and be able to fly something in your hand for less than $1,000

u.s. very excited. >> you were telling me during the commercial break that every venture capitalist, especially in china has to have an ios device, an android device, because you have to be able to test everything coming on to the market what are you testing now? >> i'm testing a lot of different apps, shopping apps, purchase apps, content apps, we're looking at videos, looking at content and most importantly convergence apps, i used to have five different wearables on me today i took them off. what you can see is that the ios or android allows you to now interact with your wearables to create data that is moving from passive to active to autonomous. that's the where i'm spending a lot of my time on. >> competing against a lot of those technology companies are the big stalwarts here in the u.s. who have strong desires to get into china. netflix is in the news today for a push to bring content to china. then there's facebook and twitter which are still trying.

how likely do you think it is that we will see those companies operate in china over the next year? >> well i think next year may be a little too short. but give it three to five years. think that the u.s. company in any of these businesses, you have to start thinking about china today if day one. think it's possible to crack the code in china, you have to find the right partner, in netflix it it makes sense to go with the right content partner. finding the right china partner to help you solve the regulatory issues and communication, you need to spend time in china talking with the government. >> and potentially learning mandarin. >> absolutely. learning mandarin is critical. china users occupy one third of the global mobile internet use space right now. if you take on china, you have a third of the market. >> and you gave mark zuckerberg's mandarin high marks. >> beijing, china, excellent. >> jenny, it's been a pleasure

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. drivers get ready to sit back and relax. pedestrians maybe not so much. google's self-driving cars are hitting the road this summer. in a blog post today, the company said several prototypes will leave the test track and take to the roads of mountain view, california, with safety drivers aboard. the cars will be capped at 25 miles per hour and have a removable steering wheel along with gas and brake pedals as needed. the director of the project wrote in the post, the fleet has logged nearly a million autonomous miles on the road since we started the project. so the new prototypes have a lot of experience to draw on. the equivalent of about 75 years of typical american adult driving experience. hopefully they do not drive like a typical american 75-year-old. >> you went there, i was going to stay away from it tesla in a journal story this week said it was going to use the click, the turn signal as a way of keeping some autonomy. liability in all of this stuff going to be huge. >> i find that the typical american driver does not always

use the turn signal. >> groups like the markets still not a lot of action. this morning in terms of movement down slightly. but we'll have a lot more time to talk about that on -- >> coming up on the "closing bell." >> kelly thanks for being with us. >> that's all for squa"squawk " alley." melissa lee has the half. ♪ ♪ >> welcome to the halftime report, i'm melissa lee, jim lebenthal, jon and pete that jerian and michael bloch. tasty stock, yum brands is on a tear. investors wonder whether a spinoff is in the works. real or fake, we brought you the debait over avon takeover. we begin with the markets, all-time highs are stocks poise for a breakout or is this a fakout? josh b