your golf shirt autographed by all of us on "squawk on the street." we send it over to you, kayla for "squawk alley." >> a two-time winner. how about that. it's 8:00 a.m. at apple headquarters in cupertino, california, 11:00 on wall street and "squawk alley" is live. ♪ ♪ ♪ good friday morning, thank you for joining us. joining us this more is kara switcher, co-executive editor at re/code. kara, good morning to you. and here for the hour, simon hobbs, thank you for joining us

again. as always, jon fortt is here as well. tim cook calling 2015 the year of apple pay. not all retailers agree. a story from "reuters" in the national retail federation shows while some big chains are using apple play, many have no plans to accept it for what they cite as a lack of consumer demand and the high cost associated with the technology. it comes as we await apple's worldwide very maniers conference where the company is expected to unveil its new strategy for music. kara, there was one respondent in the survey that said not even a small percentage of customers had asked for it. what do you make of the find sngs. >> people don't ask for it unless they can use it and they 's there. it unless they kn it's one of those chicken-and-egg things. there's a struggle between retailers and apple, over these payment systems, they're expensive an they have to change registers. it's inevitable that payments are going to change.

the question is who are they going to back? i think if big chains did back any of these, they would catch on with consumers, who i think are more than willing to try these things and find them convenient when they use them. >> i think overall, the take is unfair. yes, apple probably made a mistake coming out and giving it half of retailers by the end of the year, that are going to sign on. the other way to spin this, it sounds like about a fifth of the retailers are on apple pay. if you had told me a couple of years agoings i would have been skeptical because there have been so many false starts in mobile payments, it's been hard to use. i find myself using apple pay in more locations now as i realize that i can, in cabs, in drug stores, in whole foods in particular and it's a nice experience, does it make me spend more? i don't know. but i'm probably the sort of customer who these places want coming back. >> you know, kara, i wonder if it's not more about google having come through with a payment system for android which

a majority of people use around the world. once you've kind of completed that part of the puzzle. then retailers will look again at how they in general take those forms of payments, is that perhaps where we're head more likely? >> i think it's going to be whatever phone you use, i think mobile payments are inevitable. i think we should talk more about the competition of android and apple, is these are payments people are going to be using and obviously around the rest of the world it's a lot more convenient to use mobile payments. we have options, credit cards, all kinds of ways to pay and i think cash, remember that? and in any case, this is inevitable and retailers are going to have to sign on. we have the head of target and code this year. he talked about putting them in and how difficult a process it was, but that it was inevitable. and i think retailers do recognize that. they want a level of control over this, over consumer information. they're justifiably nervous about giving all of this information away. but to me you know it seems like something that's going to happen. it's not going to be a question

of if. but when. and that's the issue, is rolling out, educating consumers. >> and that's, that's the good point, kara here, because it's not necessarily about apple versus android. you also have the merchant exchange that a bunch of retailers are banding together. they're hoping to get that out by the end of the year. you have this growing transition to emv and then this week you have news out of visa and fireeye, they're building a threat intelligence platform for merchants though have potentially been targeted by a hack. of course very topical this week. i'm wondering if you see the industry growing up more generally and apple may be losing a little bit of its lead there. >> i think it's they've been pretty bold in how they're rolling it out. it's a great product. a lot better than some of the earlier products. the question is once people use it, they use it. and you now, i think the issues are very clear. security around this stuff. just like they were with credit cards and everything else. i think the ease of use is important. think the availability.

and sort of the, the nondifficulty of using it. think that's the one thing. it's still easier to pull out a credit card for a lot of people and the question is can mobile operators and the retailers make it a seamless experience. >> we'll be talking a lot about apple come monday with world wide developers conference walking us up to that. so certainly not the end of the conversation for apple. next up why combination sam altman has fears of a tech bubble. according to him there's overinflation acrossed board innerry country and market so we should stop worrying about the relatively small tech sector saying quote it boggles my mind that we've all indulged in this delusion. he said we're in a megabubble. and it won't last forever. john, he said this before. but he seems to be placing blame on perhaps the federal reserve, the government writ large this time around. >> a couple of different sides to this. i don't know how much we should relax about the fact that he's

saying well don't look at this bubble. look at all of these other bubbles, we're in a room full of bubbles, that's a little disheartening. i've been hearing from more and more entrepreneurs, ceos from silicon valley. that it yes it does feel overheated. i was having a conversation yesterday. kind of a lit bulb went on for me, i heard that an enterprise storage company i've been following for yees, just shut down, it was doing around $40 million in annual revenue and they just shut it down because of how difficult the environment is becoming. it makes me wonder how much this has legs. when that sort of thing starts happening. >> how about this broader view of the west coast of the east coast and whether or not we're in a collective delusion as he puts it. peter teal was on the network i guess five or six months ago and spoke about a bubble. certainly in the sovereign debt markets, is there a feeling that those on the east coast or in d.c. may have lost control of the situation? is that a broadly-held view in

your view? >> i think people are definitely worried. i agree with jon, you're hearing more worry that they are collecting money now, in order the sort of winter is coming scenario for 2016. i think people are definitely thinking these valuations are getting a little lofty here. you know it's very typical to keep debating this until the bubble pops and oh, your bubble is bigger than my bubble. it's kind of crazy to think that way. but i think the monetary policies have people here worried that the economy is all economies are a little overheated and they can't pretend that this one isn't also when the others are. but it's definitely a topic of discussion here in silicon valley. >> kara, you mentioned 2016. as this period for which all of these companies are saving. is there a general sense that that's when the bubble will pop? >> is there a pop? i don't know. i think also 2016 might be a year of a lot of ipos for some of these companies. many people are looking at the ubers and the others, you know in that timeframe. so i think it's just a question

of these valuations sustaining themselves, they're rather large and they can only get larger is the problem. so the question is can these companies like uber and air bnb and pinterest keep these massive valuations and be able to grow into them properly. that's an excellent question to ask. >> they're collecting the capital. so we'll see how that turns out. kara, it's always great to see you. >> thanks a lot. >> kara swiper from re/code. the monthly job numbers are out. market flat overall. >> 280,000 jobs created last month. upward revisions of 3,000 for the two previous months before. here with reaction, michelle mayer, deputy head of u.s. economics, bank of america, merrill lynch. welcome to the program, these are good figures for the economy, aren't they? >> that's exactly right. it was hard to poke a hole in the jobs report. you had the headline number coming in stronger, better than expectations. net positive revisions so the

trend looks good and that's what i think is really important for fed officials. they want to make sure that the underlying economy is still improving, that it is right to look past some of the weaker signal you're seeing from the q 1 data. high frequency indicators, focus on the jobs numbers and there you see momentum still building in the economy. >> before the inevitable conversation on a network like this is what does it mean to interest rates, before we go there, what does it mean for the economy? what do you think it begins to mean, if we are reaccelerating after the slowdown, for the people that seem disillusioned and importantly of course, consumers who are increasingly are saving? i think you raise something very important, what does it mean for the consumer. because there's been a bit of a disconnect between what you're seeing in the labor market with solid job growth and unemployment rate coming down. low jobless claims. and what you're seeing in terms of retail sales. consumers spending 0or retail sales in the past several months have been quite lackluster and

in my view is that we will see a pick-up into the second half of the year. think the stage is set for a stronger consumer profile. in coming months. especially if wage growth continues to rise. so i would say as look at the past few months, the weakness in the consumer. think that's probably mostly behind us. i'm getting a little bit more optimistic what we can see in the second half of the year. >> one of the reasons people might be scratching their heads today. even in the face of what is an overwhelmingly positive report is that just this week you had the imf suggest that the fed should wait until 2016 to raise rates. we have loyal brainerd at the fed saying she sees no sign of pick-up in q 2. those are people commenting on the current state of things. we're looking at the past month of data. while it is positive, i'm wondering how you square those two seemingly very different things? >> you raise an important point. but i think we have to consider what the fed is trying to

achieve. they're trying to normalize policy. they're trying to do so in a really slow gradual process, remove from the ultraaccommodative emergency policy stance it one that is still very accommodative and is going to be a gradual trajectory. soy think it's right to say the fed should be cautious, there's a lot of downside risks coming from abroad. hence what the imf is focused on. there's still a lot of uncertainty in the high-frequency numbers, q 2 gdp tracking between 2.5 and 3%. but from the fed's perspective, if you look at their dual mandate, full employment and price stability. they're meeting their mandate towards full employment. can forecast that inflation should start to head higher. it means maybe you can get started on that normalization process. >> michelle, if i'm investor, maybe i've got a case of whiplash right now because we were just talking about a silicon valley investor saying hey there are bubbles everywhere, including tech. which should tell me okay, watch out. but then we're talking about this great jobs number. and how exciting that is for the economy going forward. what should i make of that?

>> well i think one of the difficulties is that because maybe partly because of fed policy, maybe because of where we are in the cycle, using a lot of asset price inflation, but you have not seen underlying core inflation in the economy. and that asset price inflation is manifesting itself in parts of the stock market. it's showing up to a certain extent in home prices, it's showing up in rental prices. that you could attribute to the search for yields which the fed has attempted to engineer with their quantitative easing and zero-bond policy and when you think about what's happening in the real economy, you have to look at the indicators like the unemployment rate, job growth, core pc inflation. the economy is still in a recovery phase, it's building momentum. but there's still further upside ahead. >> it's a good end to the week. michelle meyer from bank of america, merrill lynch. shares of david's tea seeing a nice gain after going public

on the nasdaq. ceo will join us in a moment. plus in a huge move, employers at gawker media, remember that blogging enterprise? voting to form a union. the first-ever for a digital media outlet. gawker's ceo nick denton is going to be with us to break it down and where we're going? we don't need drivers, virginia, opening up 70 miles of highway to test self-driving cars, a closer look later this hour. opinions. there's no shortage in this world. who do you trust? whose analysis is accurate? how do you make sense of it all? a simple, unbiased stock score consolidated from the opinions of independent analysts... is that too much to ask? nope. equity summary score, powered by starmine, will help you execute your ideas with speed and conviction. and it's only on fidelity.com. open an account and find more of the expertise you need

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montreal-based teaching david's tea has just open for trading at the nasdaq under the ticker dtea. shares of david's tea up 36%. trading just shy of $26 after pricing that ipo at $19 a share. silvan teuton is president of david's tea and joins us now. so this is an industry of tea boutiques as they have been called. talk about your role in that industry and how big it is. >> well, it's a big industry. we've been building that company for about eight years, we now operate 160 stores across north america. 80% of what we sell is a consumables, so we operate in malls, outlet centers and also in street stores.

it's been a great eight years for sure. >> the majority of your operations, sylvain is expected to expand and shift, what does it look like? >> we'll be opening 40 stores this year. 25-30 will in canada. we'll open about 10-15 stores in the u.s. in different city, we're operating in four major cities, san francisco, chicago, new york and boston and we will cluster around those cities. and really go into a few more markets. so we should see the shift in about three years. as we you know, canada, complete our expansion in canada and start moving slowly faster in the u.s. >> sylvain, i drink a lot of team so i'm interested in this. some companies are trying to make tea the new coffee. starbucks is trying to move into it you are. what do you consider the differentiators for your brand? why are people going to go with

you instead of a teavana? >> our brand has been very young. we look at it as a very young brand. very modern, very colorful. our take on tea is to make tea fun and accessible for all of our customers. whether yore line and in our stores, if you have a chance to visit our stores, you'll see the first thing at the entrance is always our tea wall. our focus of 80% of what we sell is actually a consumable. >> we'll see if you guys will be able to battle against teavana. the biggest competitor here in the u.s. i want to ask you about going public it seems we've had so many fewer companies this year choosing to go that route since they can capture these eye-popping valuations privately. why was this the right strategy for your company as opposed to staying private? >> our team is ready for it. we were really ready, our business is very strong right now. most of our expansion will be in the u.s. we still have a lot of white space in canada. think it was the right time for

us to move after seven, eight years of developing the company. >> very interesting, and what about the prospect of teavana's competition. they do have the backing of starbucks, which is empowering the coffee economy here? >> honestly, when we look at the coffee industry, the more people talk about tea he, the better we are for us. we love to have you know, big companies talking about the tea market, it is a growing market. it's, it's pushed by trends like health and wellness and we, our take on tea is very young, very modern again. we go after the millennial customers, we've been able to do it in multiple markets with multiple formats. so we're really happy that there's actually more people talking about tea in the industry. >> if we frequent san francisco, chicago, new york, boston, we'll certainly be seeing you, seeing a lot more of you for sure, sylvain. congratulations. >> thank you very much. the u.s. economy added

280,000 jobs in may. way above expectations. but clearly some ceos across the country are still struggling to find enough qualified workers. we'll take a closer look at exactly what skills they're looking for in just a moment. ♪

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with the economy adding 280,000 jobs last month, we want to highlight one market bracing for a shortage of almost 200,000 workers by 2018. mary thompson is live at linkedin headquarters with a closer look. >> the market is big data analytics, here we're at linkedin because the networking site is looking to hire over 100 data scientists this year. that's more than a 50% increase from 2014. but linkedin is not alone. a survey by the global recruiter robert haas shows people with the skills to mine big data top the wish list of chief information officers this year. and mckenzie says as more

industries beyond tech seek insights for big data, demand for workers who can mine these text files will exceed supply. that means 140,000 to 190,000 of these workers here in the u.s. shortages by 2018. >> we think that the effective use of data is becoming a basis of competition and one of the real bottlenecks is talent. as much as the technology is challenging, you need people in order to use data effectively. >> michael chewy is a partner in mckenzie global institute. he says while schools are are catching up in new programs in data analytics, the employees need skills beyond statistics and computer science to do their job well. they need to be able it communicate, to to tell a story with the data that decision-makers will understand and they need to be able to visualize to see what the raw data is telling you about your company, your clients and the problems of business might have. now coming up later today on "power lunch" we're going to talk to linkedin about some of

the novel ways it's looking to recruit the talent it needs and on closing bell we'll talk to two data scientists who tell us how art and language help them to land the coveted tech jobs. simon, back to you. >> let's get over to europe to see where we're going to close in about six minutes time. it's a sea of red, though europe is off the lows we had earlier on the session. partly as a result of the employment report here. but it has been a really bad week for europe, on the one hand everybody is worried about greece and the temptation to short the market if not move to the edge and the very steep selloff we had on bonds which sent the german bund spiking, and elsewhere spiking to the highest of the year. if we look at it compared to what's happening if this country we're actually in negative territory. down 2.6%, markets here have broadly held in. within the next few minutes we're expecting to have a greek prime minister starting to address his own parliament in athens. it's important for the rest of the eurozone to gauge the

rhetoric of cypress and the degree to which moving forward they're going to have to shift their negotiating position it they're going to basically prevent chaos in greece during the course of the next few week. yesterday he returned from brussels where he had negotiations and then held a call with both merkel and hollande to say he was rejecting their core principles. he may have bought time three weeks of time by bundling the imf payments to the end of the month. but that's also when the 18 billion euros on the table for greece expires. with the end of its existing second bailout. now on the streets of greece, analysts are warning now of rising risks of an accelerated run on greek banks. because the ecb may now be less willing to supply them with emergency liquidity. capital controls are more likely. but talk of early elections also makes it some say less likely that greece will actually exit the eurozone, certainly according to rbs. because now 70% of the greek voters in opinion polls say they want to stay within the

eurozone. so if the greek prime minister loses support in parliament today, and let's say he goes for fresh elections, the view seems to be that any new government would be more eurozone-friendly. that's the theory. but it could be a very tough month of june here. >> three weeks of bought time, borrowed time. three more weeks of uncertainty. >> and then a big cliff of no money to claim on and an awful lot of money owed. and angela merkel has a g-7 summit on thursday and friday of next week, she would like to get a deal done by then. in a huge move, employees at gawker media voting to form a union. the first of its kind for a digital media outlet. gawker ceo nick denton will join us next. 73% of americans try... ...to cook healthy meals. yet up to 90% fall short in getting key nutrients from food alone. let's do more... ...add one a day men's 50+.

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what makes it an suv is what you can get into it. ♪ [container door closing] what makes it an nx is what you can get out of it. ♪ introducing the first-ever lexus nx turbo and hybrid. once you go beyond utility, there's no going back. good morning, everyone, i'm sue herera with your cnbc news update. a montana woman says the fbi interviewed her last month about her allegations that her brother had a sexual relationship while in high school with former house speaker, dennis hantert who was his wrestling coach at that time. jolene burger identified her brother as steven rhine hlt on "good morning america," he died of aids in 2005. the capsized cruise ship in

china's yangtze river was lifted out of the water, the ship carrying 456 people when it capsized monday night. 97 have been confirmed dead with over 300 still missing. so far, 14 survivors. the national institutes of health has halted operations a drug research unit after officials discovered fungal contamination in the lab. potentially contaminated drugs were given to six patients who is been notified. and the price of having lunch with warren buffett has hit $1.6 million in auction. that's likely to grow before it wraps up this evening. the glide foundation uses proceeds to help the poor and homeless in san francisco. last year's winning bid? $3.5 million. that's your news update. let's get back to "squawk alley." we want to show you where we're trading in major averages, just about two hours into trade. of course quiet slightly quiet

after a volatile open following a stronger-than-expected jobs report for the month of may. that showed we added 280,000 jobs to nonfarm payrolls, we did see wages tick up. unemployment did tick up slightly as well. but you have seen the major average, which the dow opened down about 82 points. that was the lowest point it touched. now down by just about 14 points. the s&p just turned positive, as did the nasdaq. the real action though, john, was in the bond market. we saw the 10-year hit a point we haven't seen since october. the 20-year was volatile. the expectation that maybe we've given the fed a little more positive data, a little more leverage to move this year if they choose. >> that was quite a spike on the 10-year. an historic vote over at gawker media. employees there voted by i believe a 3-1 marge ton unionize this week. making it a first for a major digital media outlet. but is the ceo of gawker still as quote intensely relaxed about it all? as he said back in april?

nick denton is the ceo at gawker and joins us for a cnbc exclusive interview. nick, so great to have you. tell me what's going on here. because i seem to remember a couple of years ago you backed away from so much focus on page views. as a stat. it used to be it seemed like people were grinding away, working for page views, gawker was one of the first in the blogger category. now the employees are unionizing, are you becoming like a newspaper? like an old gray publication? what's going on? >> you shouldn't insult me like that, jon. >> i had to poke you a little bit. >> i believe in happy and motivated journalists and journalists naturally like to organize. they're natural anarchists, they're naturally pretty left wing. something to the left of where i am. can you either fight something like that, and have the kind of confrontational relationship that often exists in the u.s. between management and workers. i'm not from here. i don't believe that's inevitable and i like the german

model. and so that is the kind of model for worker management relations that we like to implement at gawker media. >> so what about the uber model? it seems like blogging, blogging era was sort of the uber model for content. it's kind of work when you want to. churn out a bunch of posts, you'll make a bunch of money. that will make you happy, the recognition, the comments, the paycheck. where has that gone? >> i think the uber model for personal transportation and the uber model for media actually requires probably more organization on the part of workers. not less. the workers are dispersed, they are when they're dispersed and fragmented, they don't have negotiating power and they are dealing with in practice, a monopoly employer. i'm a free market guy. i'm an economist by background. i believe in free markets. but the fact is we're moving into an era in which free markets no longer apply so strongly and in which you have monopoly marketplaces. actually like this new york stock exchange in some ways.

>> it's not a monopoly any more. fewer and fewer people each day. >> but generally these marketplaces, require some regulation. and if the employer is a sole voice, why shouldn't the workers be able to aggregate their demands and negotiate directly with management? >> more generally, is enter more friction between running a company like a start-up and several years down the road needing to provide transparency and benefits that more mature companies would provide, like severance for fired workers or transparency about pay seems to be about what this group is advocating for. >> you don't obviously don't know us well. we're pretty much the most transparent organization media organization in this city. >> i'm citing what they were citing, i know you very well. i'm citing what your employees were citing. >> many of their issues about transparency were more related to the organizing. the company is actually entirely willing. i'm say it right here, right now. the company is entirely willing

to release all information, we already released traffic information by writer. they don't always like to have that kind of transparency for their productivity to be so much on display. we have tracked the quality of articles as determined by the new editorial team that we brought in in january. which is, as you said jon, much more focused on the quality of stories and not playing that crass, facebook game that has dragged down so many media sites. >> what do you think will happen to wages? >> to wages? >> i think the very best journalists will like be the very best of on-air tv personalities, that they will be paid very well. >> don't unions fight for uniformity? >> traditionally unions fight for uniformity. the writers guild of america, that we're working with, recognizes that the gawker writers, they're anarchists. i've learned this over several years. you do not fight anarchists by

trying to boss them around and meddle and impose policies and bureaucracy and the writers have made it clear i think both to the management and to the union, that they like the way that they work. they like the flexibility. they like to be able to work either from home or in the office. and none of that is going to change. >> nick, quickly i know this is a kind of a rude question to ask you to answer quickly. >> i love rude questions. >> where do you think we are in publishing and media in three years, given the big changes that programmatic advertising is pushing through on the one end and your workers wanting to organize on the other. >> the biggest question is how is this bubble manifested? i saw you guys were talking about this very issue on the show earlier on. i don't believe the bubble is manifested in the financial markets. the multiples in online media companies move from maybe the two to three times revenues, to four to six times revenues. so it's a little higher than usual, but buzzfeed was seven

times revenues. i think some last round. don't actually quote me on that. but i think there is a bubble. in the traffic numbers. and i think there's a bubble in the deals that companies like vice are doing with clients like bank of america. where there's too much hope, too much sizzle and not enough substance to the deals. you saw disney's fusion, it was revealed on gawker this week, that their highest traffic story, which was about amateur porn, the highest traffic story had as many readers on it as they have employees. they're extremely well funded. i think in the next three years, some of the highly funded, well publicized, but ultimately rubber-thin media companies are going to come a cropper as they say in england. >> gawker ceo nick denton dealing with orkizing anarchists, which is a bit of an oxymoron.

>> you're an australian? >> no, i'm english. >> you should recognize that. >> coming up on the program, it could be the largest theft of government data in the history of this company. behind the hack of as many as four million government employees. what it means moving forward. and also of course, rick santelli will rejoin us from chicago. >> absolutely, simon. we're going to have former head of the council of economic advisers under george w. bush, ed lazeer, we're going to talk about the data, the fed and the imf, in two ways. about global u.n.-type central banking and has greece put the umf in a tight box? leadership is about vision and integrity, confidence, inspiration and passion.

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there's no such thing as quiet time. but you can quiet the ringing with lipo-flavonoid, the number-one doctor-recommended brand. relieve the ringing with lipo-flavonoid. . at top of the hour, the note that big money is talking about today. a boom and serious doom prediction from one wall street strategist. you'll hear from him live today on why he thinks the bull market will end very badly. plus, one of the best voices on oil, goldman's jeff currie on how to play the post-opec market. plus trade school is in jam session today, the band spreading financial literacy through rock music, steve liesman moonlighting on guitar. straight ahead, we'll see you in 15. >> thank you so much, scott, we'll be there. >> let's get to the cme group, rick santelli with the santelli exchange. happy friday, rick. >> happy friday and i have

george w. bush's former head of the council of economic advisers, ed lazear. thanks for taking the time on this employment friday. >> great to be with you, thanks, rick. >> all right. let's start at the top. 280,000 jobs. and believe me, i understand that's good. but we did have 329, in december, 423 in november. the snap-back didn't take those numbers, but it's still good. i found the average hourly earnings year-over-year, up 2.3%, placing it at some of the best levels since '09. your thoughts on all of it? >> right. i agree with you, rick. think what you want to look for in these numbers is trend. you don't want to look at any one single month. but trend is good over the past couple months. if we look at the current number, 280,000, that's higher than the annual number, which was about 250,000. and that's higher than the three-month number which is 207. so that's good. the labor force participation rate has been growing slowly.

but it's growing. you know at about .1 percentage point a month. that's good, as you mentioned wages are growing, the employment to population ratio which was steady, ticked up a bit this month. all of those things are good. if this were a situation of full employment. i would say this is a fabulous report. because it basically says we're doing well above what we need to do to maintain the status quo. the problem of course is that we're still about 4.5 million jobs below full employment. so we have a long way to go while it's a good step in the right direction, even at this pace it will still be four years before we reach full employment by prerecession standards. >> all right. we about a minute and a half. let's move quickly. zero interest rate policy. listen, this is crazy. i'm sorry, you know, to listen to many talk about the data, and many data points, they're enamored about the good data and it turns to the fed, and it's like, i know we said everything

is good. but they have to wait to be absolutely positive. malinvested, unintended consequences, an entire globe calibrated to zero rates, all of the inflation showing up in financial assets like equities. do you think they ought to raise sooner rather than later in the u.s.? >> there are two questions, one is ought they raise? and the other is will they raise. i think they will raise, but not in june. i think they should raise as soon as possible. so i would say it's time to start. i don't think the policy of low rates is doing much right now. it's time to get back to a more regular-looking environment. >> great. now imf, everybody's big story about the imf is they want global monetary policy to be like the u.n. i think it's a really bad idea. but i find other news more interesting. so the greeks, they're a bit angry and i get it. current government basically saying listen, we have a 300 million euro payment, it sounds like they don't want to make it but they could make it. does this squarely put the small

government of the left in greece completely at odds with the imf, who is now going to suffer the fate of a default, it's squarely on their shoulders, has greece played a chess game that put a checkmate on lagarde and the imf and the potential liability they now stand on? >> i don't know if it's a checkmate, but it's a game of chicken that greece has been playing for the past two years and winning every round. this is another case in point. if you look at what they've done. they've called the bluff of the institutions, they've called the bluff of europe. they're winning that game. you know it's very long time since when we thought greece was going to default and they were going to be in trouble. and they're still around. and i would say that if i had to bet one way or the other, i would bet that greece is going to continue to be able to do this for a long time. >> you know what, while we're on a roll, let's keep going. let's go back to the kind of u.n. monetary policy. listen, think it's a bad idea, i

understand that we are in a global environment. many of the things wrong in in the u.s. i think are because of the global dynamics, like skilled and unskilled workers. what are your thoughts about maybe more working together by the central banks on some level it's a good idea. on another level, i don't want to turn into europe. >> yeah, well i think it's always a good idea in theory and a much poorer idea in practice. think about how difficult it is just to coordinate within one country. let alone between countries. so you know if you think about the united states congress and the presidency or you think about those two branches trying to deal with the federal reserve, it's you know it's a very difficult coordination problem. now think about the u.s. trying to deal with the imf, with the world bank and those institutions trying to deal with one another. i think you know coordination obviously is something that you always want to seek and it's important, because we live in a global capital market. but it's just very difficult to do. and i think the more we try to

do that, less likely we are to get anything done. >> ed, thank you, i hope you have a terrific weekend weergs going to go back to jon fortt now, thank you. up next, personal data, including social security numbers stolen from as many as four million government workers. in what could be the largest data breach in u.s. history. what you need to know in a moment. more and more, data is v. more and more, data is v. in fact, the number of mris has increased by ten percent a year. and a radiologist might view a thousand images to find one tiny abnormality in shape, contrast or movement. because it's so challenging, a research project is teaching ibm watson to see. in the future, it could help clinicians spot key patterns quickly and precisely. ibm watson is working to make healthcare smarter every day. every auto insurance policy has a number. but not every insurance company understands

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hackers in china stole personal records from as many as four million government employees. amon javers is in d.c. with more. >> those four million current and former government employees are being notified by the federal government that their personal information may have been accessed in a hack that dates back as far as government officials tell to last year. discovered it in april using what's called an einstein system, a data intrusion system used by the federal government. by may they say they were able to figure out it was a massive breach, indeed up to four million people being notified. the office of personnel management. the he can at this time that was targeted here. you can think of them as the government's hr department. you have all the sensitive data on employment, salary, social security numbers, all the rest of the kinds of things that your hr department in your company might have on you. they put out a statement, saying protecting our federal employee data from malicious cyberincidents is of the highest

priority at opm we take very seriously the security of the information stored in our systems. some massive data breach. who did this and why. was it will chinese government, was it somebody in china as part of a criminal gang. was this espionage. was it economic espionage. was it somebody else entirely? it's very tricky to attribute these cybersecurity breaches as we know. the other question is going to be, what exactly do they intend to do with all of that data. that is the big mystery. >> and especially, twice, eamon, in the span of one year. certainly something we should be paying close attention to. eamon javers in d.c. is the future of self-driving cars in virginia of all places? the state set to open up 70 miles of highway for testing driverless cars. we'll take a look in a moment. you used to sleep like a champ.

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automated vehicle systems at virginia tech's transportation institute which is overseeing the program. now myra, is it significant that virginia is the state that is opening this up? and what do you think is behind them doing this now? >> i think -- virginia -- [ indiscernible ]. . you have -- terms of you think -- [ inaudible ] >> myra blanco's audio, she's on skype. >> she's on skype. sometimes you have difficulties with that. you know, this jobs number was just amazing this morning. you wouldn't know it, if you were looking at the raw numbers on the indices as how the markets are reacting. the 10-year just spiked. >> 280,000 created last month. which of course, it's great news for the economy, you can start

talking about an environment where we're reaccelerating again on this ipd kind of statistic, if not on some of the survey data. >> the reason the markets have not gn further is it brings forward you're going to get near-term interest rate decreases. the market has been supported by super low interest rates. >> the bulls will talk about averages we've seen in job creation. even with the negative months and the negative data we've seen about 206, 207,000 jobs created. is the average for last three months. so this number really does a lot to bring up the average data above 200,000, which we didn't think we could get a couple of months ago. which is interesting. >> that number looks back and we're looking forward, next week to wwdc, apple's big developer conference, we're going to hear more about the future of apple watch. and more. >> in the stores yet? >> is the watch in the stores?

it's supposed to be in the stores at the end of the month. i believe we have myra blanco back on the phone. myra you were talking about virginia and the reason why virginia is the state that's doing this right now. >> if you think of it other states are putting a lot into the suppliers and car and truck -- [ inaudible ] [ inaudible ] [ inaudible ] >> well -- >> having some issues with myra's signal. we'll have to have you back at some point in the future. it's an incredibly interesting topic. the fact that the state of virginia has earmarked 70 miles of roads for self-driving cars, apple is not there yet. but a lot of people thought they could be. >> what kind of insurance you get to put these cars on the road. what happens if one of them goes haywire. this is quite crowded roads. >> often they still have a human sitting there in the car. just in case something goes

wrong. >> if i was the insurer, i might require that. >> and if i were a consumer or a resident of virginia i would probably look at those roads and say i'm wondering if i should take another route today. >> these days, we need people to monitor the machines that are driving. but we also need machines to monitor the people that are driving. whether it's trains, whether it's cars, it seems like more and more, we need people and computers on both sides of things to keep things together. >> it's a perfect tech harmony. a utopia of cooperation, john. >> either that or the next "terminator" movie. jon, what are you looking for on monday from wwdc? a software story primarily? >> we always get updates on mac os and ios as well. we expect to hear more about apple's streaming music plans. the question is how much they say about streaming video. we had been hoping for some sort of hardware announcement. now everything we're hearing says we won't get that. lots of insight into apple's

future based on the software moves they make. >> very interesting. i know we will continue to talk about that. will you be out there on monday? >> i will be out there on monday. >> carl will be there as well, i'll be holding down the fort. >> i don't know if carl will be there. >> simon thanks for joining us. we send it over to the half. ♪ ♪ kayla, thanks, welcome to the "halftime report." let's meet the starting lineup. john najarian, with josh brown, steve weiss and rob seechen of ubs, one of barron's top advisers and cnbc economics reporter steve liesman and up in chicago, our very own rick santelli. our game plan today looks like this -- boom, then doom. it's the note that has a lot of big money talking this morning. why stocks will continue to