oakland, california and 11:00 a.m. on wall street and "squawk alley" is live. ♪ ♪ ♪ ♪ welcome to "squawk alley," congratulations to golden state after a great series, joining us this morning at "squawk alley" at post 9, zillo ceo spencer rascoff. good to see you and kayla tausche and jon fortt. markets in a narrow range. first up, twitter's interim ceo jack dorsey reiterating his new job is only temporary. in a statement to re/code he says quote as i said last week,

i'm as committed to ever as ever to square and its continued success. i'm square's ceo and that will not change. i'm dying to know what you're making of this drama. >> i want to start by saying you have to remember what dick accomplished during his tenure. when he took over ten years ago, twitter had seven million active users, now it has 28 million. in terms of what happens next here, i don't think that anyone can be ceo of twitter and ceo of another company at the same time. just because steve jobs did it once upon a time doesn't mean it can happen again. i think if what jack says is right, i think they need to find another ceo. >> why is the story so important? the question i keep getting from viewers is, is this just media naval-gazing? it's a $23 billion company. why do we care so much about the way the transition is handled? >> the market cap belies twitter's impact. you're right, it's a $23 billion

market cap company. same as linkedin. same as netflix. and yet, twitter's impact is much larger and it's market cap could become much larger. it's changing industries. >> doesn't success really determine whether you get to be the ceo of two companies? nobody is complaining about elon musk. if mark zuckerberg wanted to be the ceo of another company, i don't think people would go whoa, wait a minute. you've got to make sure that facebook is under control. if in three quarters twitter is doing great and coming out with awesome products, might people just say yeah, jack is staying. >> i think it would be a mistake. what twitter needs is someone with full-time focus. sustainable in the short-term, but over the long-term, especially with a company as dynamic as square that will go public and has its own challenges -- >> that was cramer's point. the regulatory challenges of bringing square public, while you're running a company that's already public -- that would be new. >> unprecedented. and i don't think fair to square or twitter employees.

over the long-term. the short-term i'm sure jack can juggle. >> one analyst wrote last week that twit certificate a late-stage private company that just happens to be publicly traded. do you think that's true? >> to some extent. >> do you think they came public too early? >> i don't know about too early. but it hasn't figured everything out yet. typically most companies become public once they've figured out the business model in its entirely and twitter is still finding it. it's still early stage. >> how much does the roaring success of facebook as a public company cast a pall over what twitter has done. twitter has grown, grown users as a public company, but facebook has knocked their socks off. >> compared with what. by any objective measure, twitter is an unbelievably successful and impactful company. when you compare it with a once in a lifetime company it's an unfair comparison. >> you went on a tweet storm

this morning, saying facebook is your largest personal position other than z. you talk about all the things they've done right. even the things they've done wrong. the ipo, the phone, some privacy issues, they've remedied them quickly. >> facebook has a very long-term approach. even though they're publicly traded, they're not a slave to the quarter. facebook makes long-term bets, they buy oculus, because they think the way people might be interacting with the web ten years from now. might be through this. they make a $19 billion acquisition for whatsapp. and facebook, though public doesn't react to the quarter. >> spencer, how much of that is structural? the fact that mark zucker bg can do what he wants because he's got the most votes allows him to do that whatsapp deal. if he had to go to a board. like you do and most ceos and say, i want to spend $19 billion

on whatsapp, would that work? >> it's true and zillo is blessed with a dual-class stock. so our founders have super voting control. that allows us to do things like invest in rentals far in advance of when we're going to make money off rentals. so make big, bold bets that pay off down the road. it's true when you're publicly traded having a dual-class stock allows you to be more long--term oriented. >> steven spiegel posting a video attempting to show how his social network works. >> historically photographs have been used to save major life memories. but today with the advent of the mobile phone and kind of the idea of the connected camera, pictures are being used for talking. so when you see your children taking a zillion photographs of things that you would never take a picture of, it's because they're using photographs to talk. >> just after posting that video, spiegel deleted just

about every single one of his posts on twitter. a spokesman explained to "the wall street journal" saying spiegel prefers to live in the present. and there are apps, john, that let you do this. basically clean out your inventory. leave the past behind. >> it helps sometimes if you want to delete your email, if you want to delete your tweets, sometimes you want to forget things you've written in the past. little hillary clinton reference there. a little evan spiegel reference as well. it's an interesting take. not everybody can build a business on just the present. because so much of what you're trying to advertise against is data and stuff in the past. i mean spencer absolute, right, you don't want to just know what the house is worth right now. you want to know what it was worth five years ago. >> i love what evan did. it looks a little bit like an al qaeda hostage video, but that's genuine, that's authentic and that's what snapchat is and that's what millennials relate to. he has 100 million monthly active users at snapchat this is the real deal.

>> some argue it's way higher, we just don't know it. >> it's huge. and i think for big media or for investors or others to think that. this is the real deal. take it seriously. >> here he is explaining what snapchat does to parents, what if parents then get on snapchat? do they make it less cool? >> well that's what happened with facebook, right. but here we are still stuck to it. because of the network effects of facebook. that will inevitably happen and the next snapchat will come along. we've seen time and again that advertisers follow audience. it's happened with google, youtube, twitter, snapchat so snapchat has a huge audience, to be taken seriously. >> we get over to diana olick with breaking news on so-called robo signings, diana? >> remember robo signing when banks fraudulently signed thousands of foreclosure documents and got in trouble for it? well now years later, federal

regulators have ended foreclosure-related consent orders against bank of america, citigroup and pnc saying they met all the order requirements imposed in 2011 after the robo signing scandal. but they have imposed business restrictions on six other banks that have not completed the required corrective action. they include jp morgan chase, u.s. bank national association, wells fargo to name a few. they have not met the requirements. and as a result, the amended orders issued today to these banks restrict certain business activities that they conduct, that includes acquiring more residential mortgage servicing portfolios. it won't restrict them originating new loans. but it will restrict what they can take on in mortgage servicing. back to you. >> diana olick, thank you for that. more housing news today. being a wednesday, mortgage apps came in, the 30-year fixed mortgage rate now about 4.22, the highest level since october. if you haven't locketed in by

now, is it too late? >> if you have equity in your home and haven't refinanced, do it now. that's not really what's the big housing story right now. yeah, mortgage rates are ticking up. but the biggish is negative equity. around a third of all home owners with a mortgage are effectively upside-down on their loan. they don't have enough equity to sell their home. don't have equity in their home, they can't list. that means there's limited listing inventory and that makes it a seller's market and drives home values up. >> is that why inventory is so lean? >> exactly. because of negative equity. a lot of home owners can't list, even though they'd like to. >> so there's a liquidity problem. >> there's a liquidity problem. there's too much demand, not enough supply and the way it resolve it isself is home values increase as we've seen over the last 12 months. people get lifted out of negative he can wid and then they're able to list. >> what if it takes a long time? >> for a long time it will be a seller's market. at the other side we have a big

problem where rents are going up even faster. around six million americans or so stopped being owners and started being renters. but there wasn't a new rental supply overnight. >> that explains permits this week. crazy. >> so people are brig on multifamily inventories as quickly as they can but it takes a couple of years to catch up. so rents are increasing faster than home values. >> what do you see when the fed raises interest rates. we saw with the taper tantrum did to mortgage rates in june of 2013. biggest jump in 26 years. how does it affect things going forward. for people who want to buy a home? >> it makes mortgages less affordable. and you also will have a mortgage lock-in situation a couple of years down the road. imagine if you bought your home last year, two years ago and a 3% interest rate. and then five years from now when you want to sell it, the person is going to have to buy it at a 5% interest rate. all of a sudden it's very difficult for that transaction to happen because the home is much less affordable five years

from now. even putting aside appreciation. just because of rates going up. so this long period of unsustainably low interest rates does have negative effects, we don't feel them yet. >> that's an argument for a gradual rise. >> yes and i think that's what the fed is doing. >> fitbit set to price tonight. it will go public at the exchange tomorrow. would you be in if you could? >> i'm a big fitbit fan. zillo has given one to every employee. 2,000 employees at zillo have fitbits. i'm a believer. the question long-term is enter a role for a stand-alone tracker? or is it going to end up in a wearable or an app on a smartphone. that to me is the big question. >> how many of your employees are continuing to wear this? >> i think most of them do and fitbit has introduced social elements and 0 you can compete andky see how many employees have taken rfr i day, week, month. and it creates virility.

>> long-term, will it be stand-alone or integrated. the advice i would give to fitbit management is even though you're going to be public very soon here. do not become a slave to wall street. all due respect. do not -- >> we're not wall street. >> they're going to have decisions like should we do this, to impact the number of shipments of our trackers next quarter? or should we make investments that might pay off three or five years from now. it comes back to the facebook conversation and the surest way to make sure they're out of business three or five years from now is to react to the quarter and become a slave to near-term focus. take big bets that will pay off down the road or else you'll be dead. in an industry as dynamic at fitness trackers and wearables. >> haters going to hate. >> i've said it before, taylor swift. >> good to see you again. >> spencer rascoff joining us. the major averages are on pace for their second day of

gains, even amid the greek drama. greek official confirming the country will not be able to make its june 30th payment to the imf without a deal with creditors, looming in the background is the fed press conference today and you're seeing what it's done to the market. shares of fedex slipping after earnings and revenue missed estimates. ceo fred smith said he was optimistic that recent acquisitions could start contributing to shareholder value. but the stock is down 3% and starbucks is in the green after announcing it would close its 23-shop pastry chain la boulange three years after buying the company. it still serves its pastries in the starbucks store, you but the stock is hitting a new all-time high this morning. when we come back, adobe earnings beating the street, despite the disappointing outlook for the current quarter. the ceo is with us. and the amazon said it expects to have drone technology ready as soon as the faa gets its act together. a top vc and early amazon

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california labor commissioner ruling that an uber contractor is actually an employee. the driver, barbara ann burwick had sued the company related to expenses for her work. the plaintiff was awarded $4,000 in expenses for things including bridge tolls and other expenses related to operating the vehicle, including mileage. uber has appealed the decision and we reached out to them for comment, but haven't heard back. the ruling says quote the overriding factor in determining whether someone is an employee is that the person's performing the work are not engaged in occupations or businesses distinct of the business. rather, their work is the basis for the defendant's business. it goes on to say that employee/employer relationship will be found if the defendants retain pervasive control over the operation as a whole, but the workers' duties are an integral part of the operation and the nature of the work makes detailed control unnecessary. while the ruling is not directly related to the big cases we've been watching against both uber and lyft out of california it

could set a precedent in the state for both companies. well uber and lyft have lawsuits with several plaintiffs against them in california over whether drivers are employees or independent contractors. and action on those cases is expected sometime in august. their attorney told me. the fact that uber considers its drivers contractors and not employees is critical for their business model and that's why we are going to be watching those decisions so closely. jon, back over to you. >> thank you, kate. adobe reporting better-than-expected earnings for the second quarter and the company seeing a boost from continued growth in revenues for creative cloud. and the ceo of adobe joins us now. shantanu, an interesting quarter gifg given that your recurring revenue from creative cloud has hit this high level now. i'm bondering how much longer -- wondering how much longer will you see this kind of creative growth in the cloud where you're switching people from the older

model to the newer one. in terms of people signing up. i know that you're not pointing people to subscriber numbers so much as to the recurring revenue. how long are we going to see this kind of user growth go up? >> well, jon, i think it was a really strong quarter. we had tremendous migration of people who use the old creative suite to create a cloud. we're attracting a brand new set of customers, over 20% of the customer who is are now on creative cloud, are first-time users of a adobe. and we're early in the transition. it was a strong quarter as you pointed out, over 630,000 subscribers and the underlying health of the business, which is reflected in our recurring revenue has also never been stronger. 72% of the revenue is now up from 5% a year ago. so the company is executing. >> i think you repurchased around $200 million of stock in

the quarter. there's a lot of talk about buy-backs versus other uses of cash. begin the valuation of some of the companies that you might look at acquiring, versus acryering your own stock, how has that shifted over the past three to six months? how do you expect it to shift over the next six? >> well jon, we had a very strong quarter in terms of operating cash flow. operating cash flow was over $470 million. which i think just reflects the underlying health of the business and we have always returned money to shareholders by buying back stock. the board of directors authorized a new multibillion-dollar buy-back. so we're executing against it. and in terms of our ability to do acquisitions, whether it's through cash or stock, we feel good about what we are able to do if we find the right companies. >> one of the other interesting things you announced that stock images are going to be built

into the creative cloud experience in a much more basic way. you say you feel like 85% of buyers of stock images are already using adobe software. how much more are we going to see you use this tuck-in strategy of acquiring something and making it part of the cloud package. trying to enhance the average revenue peruser that the creator cloud is seeing? >> well the vision we had, jon, with the creative cloud was to have that be the one-stop shop for creatives. we have the best desk top applications in the world to enable people to create content. we've delivered a whole bunch of whole applications, which is attracting a whole new set of first-time users. and in addition to those, we want to deliver services, services like stock photography. which is a natural. it turns out as you pointed out that over 85% of the people buying stock and a greater percentage of those who are

selling stock are using adobe products so creating this marketplace, where every creative professional can monetize their skills is something that i think is a complete natural to us. it increases the average revenue peruser. it makes it sticky. now anybody with a great camera and eye for skills, can monetize their skills, which is fabulous. >> 40% of your business is outside the u.s. what impact are you seeing in local economic conditions having on the uptick of your cloud business? >> well when you look at the quarter and you think about operationally how we performed, think the most key metrics of the business that we look at are annualized recurring revenue and are we building a predictable revenue stream in the creative cloud. we reiterated and increased the target for that. which reflects the momentum that we're seeing with the creative cloud. as you know, the marketing cloud

is a brand new business for us, it's enabling any industry to move their business online. we said bookings in the marketing cloud business was strong. we're increasing our business 30%. in a year over year basis. and then with respect to the document cloud, people are continuing to share documents with pdf being a franchise. when you look at the three underlying businesses that adobe has, all across the world, think we continue to see stability. and in fact momentum. and the introduction of new services like adobe stock. just reflects that we are aggressively entering new markets. where we have real permission to play and innovative products. >> adobe ceo shantanu narayan. thanks so much for joining us.

thanks, jon. up next, a major departure from microsoft's executive team details, when we come back. ♪ ♪ at chase, we celebrate small businesses every day through programs like mission main street grants. last years' grant recipients are achieving amazing things. carving a name for myself and creating local jobs. creating more programs for these little bookworms. bringing a taste of louisiana to the world. at chase, we're proud to support our grant recipients,

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news on microsoft in the last hour, stephen elop is leaving the microsoft executive team. elop, the former nokia ceo was executive vice president of microsoft's devices and services unit. was rumored to be on the short list for ceo job before getting beaten out. streamlining responsibilities over devices and clouds, mark pen long-time strategist at microsoft also leaving. a few minutes to the european close, let's get simon hobbs ahead of tomorrow. >> european markets currently in negative territory. very volume tiff. actually the confirmation that inflation has returned to the eurozone, but the fear is we could be entering a period of market stress over what may

happen with greece or we think may happen with greece over the next couple of weeks. it's interesting today that the greek central bank which is joined at the hip with the european central bank came out with its annual report talking about a potentially uncontrolal crisis, if they don't do a deal that they could exit not only potentially the eurozone, but also the european union. that as dow jones industrial average is quoting an unnamed official as saying that deposit outflows have reached the best part of $2 billion from the greek banks. any moment we should get news from the european central bank whether or not any run creasing their liquidity provision to them. the assumption from analysts is they will, because otherwise they would inflame the situation. in ants it's important to point out that the austrian chancellor continues to do the rounds here meeting the greek prime minister, in many senses within the euro group as a potential ally. criticized some of the demands that the rest of the eurozone are making on the prime

minister. those greeks in streets, with unemployment with of 30% to 40%, may find an v.a.t. increase not able to be understood. he believes every other member of the eurozone will have a voice in what happens tomorrow and tomorrow is the finance ministers' meeting in luxembourg. the suggestion is that the prime minister may not be telling the greek people the truth. an official for the eurozone says it will be a short meeting tomorrow. some analysts are speculating there will be an ultimatum given to the greeks to size up or the game is over. other analysts are suggesting there could be an emergency meeting of eurozone leaders over the weekend. you'll remember, guys, we have one of those meetings at the end of next week. but if they have to institute some form of capital controls, the ecb says you haven't done enough for us to stay on board. supplying liquidity, some say this weekend could be the weekend it comes to fruition. >> a lot to watch.

simon, thank you very much. when we come back, amazon's drone battle flying to capitol hill. we'll get an early amazon investor's take on the company's fight for flight. if legalzoom has your back.s, over the last 10 years we've helped one million business owners get started. visit legalzoom today for the legal help you need to start and run your business. legalzoom. legal help is here. when you do business everywhere, the challenges of keeping everyone working together can quickly become the only thing you think about.

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here's your cnbc news update. amazon says it will be ready to go after a senior federal

aviation administration told a congressional panel that the agency expects to finalize regulations allowing commercial drone operations within a year and that is months earlier than previous forecasts. we'll have more on that story in just a moment. goldman sachs telling its summer investment banking interns not to work in the office over night. bid to improve working conditiocondition s for the junior staff. how wall street executives are seeking to curb excessive hours in the wake of a bank of america intern's death in 2013. swiss bank investigators of 2018 and 2002 world cup locations. first lady michelle obama arriving in italy with her two daughters for a visit. the first lady will promote her healthy eating program. that's your cnbc news update at this hour.

back to "squawk alley." thank you, sue, as we heard, amazon on capitol hill this morning where it's urging lawmakers to states should not be allowed to regulate drones in a q&a session, the company's head of policy sheds light on where the company with its drone delivery plans. >> do you have the technology in place to move forward providing that all the other restrictions are given the green light? >> today, no. but we will have it in place by the time any regulations are ready. >> we are working very quickly. >> nick hanower is one of the original investors in amazon. the first nonfamily investor. you're in town to testify in favor of raising the minimum wage for restaurant workers here and we're going to get to that but let's talk about amazon and where the company is with its drone plans, they were arguing for states not to meddle in the

regulation here. but then they say well we couldn't do it today even if the whole system were in place what do you think? >> moving product via drone is a very complicated technology problem. my partners and i backed an early drone company that boeing bought a few years ago that does drones for combat and surveillance and you know for a lot of very good reasons the faa has a lot to say about people moving airplanes through air space above where people live. obviously if things go wrong with your bag of groceries, moving through the air it will be a problem. we don't have kpree hessive faa rules in place so that's led states and municipalities trying to regulate this. can you run a successful drone delivery network without it being an interstate effort? >> i am not an kpeexpert but it seems extraordinarily unlikely to me.

i can't imagine how anybody would go along with that. >> the other story on amazon is they could use everyday people to buttress their delivery network. sort of how uber does, that also seems more difficult in practice than in theory. >> well i mean, the truth is that the internet technology like the technology that uber deployed has made that kind of work-sharing much easier. more economic and you know, better for everybody, although it creates some labor problems. >> do you sympathize with amazon shareholders who argue the metrics are not transparent. that dream of operating profit is illusory? >> no. i've been involved in amazon from the very first day. you know, jeff sent his stuff from new york to my house and from the very first day he was focused on growth if that, if jeff wanted that company to generate free cash flow, he could do it at the push of a

button. he's trading off profits for growth. he's always been trading off profits for growth. clearly it's worked out very well. i would be the last person to second-guess him on that. >> you're in favor of the $15 an hour minimum wage. not just in seattle but here in new york as well. >> yes. >> talk about that. there are a number of people who feel like with small businesses in particular, that would be a bad thing. i'm wondering if you can tie this into the uber issue today. contractors versus part-time employees. is one or the other better for the labor force if uber has to take these on as part-time employees versus just contractors. >> i was asked to come to new york to testify in front of the wage board. and i feel very strongly about this. and i felt it was worth coming. i wanted to advance essentially you know, the opposite of the usual claim that if wages go up, employment will come down. and point out that there's no evidence for that whatsoever.

that you know when workers have more money, businesses have more customers and need more workers. when restaurants pay restaurant workers enough so that even they can afford to eat in restaurants, it's not bad for the restaurant business, it's good for it and seattle has the highest minimum wage in the company. we pay tip workers 500% more than the federal tip minimum, $11 plus tips versus $2.13. our restaurant industry is the second-most robust in the country. we follow only san francisco that pays even more than us. so clearly it works. clearly when you pay people more, it's good for business. >> the question is where's the optimum. why not pay them $100 an hour and have an even more robust industry. >> that's of course a good point but $15 is a very modest number when you consider it in historical context. if the minimum wage attracted productivity over the last 31 years, it would be $21.70.

if minimum wage had topped the top 21% of workers, it would be $28. so clearly $15 is a modest number that fits nicely within the context of our present economy and there's nothing to a city like new york. >> we get back to this uber issue, should they be contractors or employees? >> absolutely not. in fact yesterday i published an article called shared security, shared growth that tries to get at this issue. when you, traditionally workers had this enduring relationship with employers and the things that defined a reasonable dignified middle class life were negotiated with that employer. when you fracture that relationship now those things need to be portable with those workers. so we really in this country need a new kind of what we call a shared security system. where things like labor standards, don't, they travel essentially with you. no matter who you work for. because today a worker might have as many employers in a year as their parents had.

in their entire career. and you can't expect people to renegotiate all this stuff, you know with you know from employer to employer. >> the term that sprung up to describe it as fractional employment. people who can work on their own time. is it a net benefit to society at the end of the day? >> i absolutely think it is a net benefit to society. i think the uber economy is here to stay and that kind of innovation delivers terrific value to the society as a whole. on the other hand, we have to change the way in which we treat the labor market to accommodate it, right? we can't let these new business models destroy the middle class. what we have to do is we have to institute a set of policies, which are usual, portable, and pro-rated, so that people can have the kind of dignified life that drives the economic that we once had. >> it sounds like regulation, it sounds like you're saying -- >> absolutely.

>> all human endeavor is a collective action problem. should we put our own fires out or should we have a fire department? an economy is a collective action problem and you know this is why i'm for the minimum wage. when every worker is paid a decent wage, then every business benefits from those, from that demand. and every taxpayer is relieved from the burden of paying for the poverty programs that all these fast food workers depend on. it's idiotic. it's idiotic to have this two-tiered system. some employers who are essentially parasitic on the rest of us. >> the debate in new york is heat the up after l.a., san francisco, seattle have all started raising minimum wage. we'll see. nick, we appreciate your time. >> thank you so much for having me. up next, big day for the fed. rick santelli, you must be watching that today. >> we're going to be talking to mark olsen. a former fed golfer, 200 1-2006,

about everything fed after the break.

coming up at the top of the hour, will the fed chair send stocks into a spiral or give investor a reason to relax. we'll ask institutional investors. plus, is fitbit the right fit for your portfolio? what you need to know ahead of tomorrow's hot ipo and bull's eye or full of bull? bristol-myers started with a

sell at piper jaffrey. it's our call of the day, not everybody on the desk agrees with it we'll have a good spirited debate about it. >> let's get to the cme group. rick santelli and the santelli exchange. hey, rick. >> hi, carl, i would like to welcome my special guest, i'm excited to have you mark olsen, former fed governor on the day of the press conference and second day of this fed meeting, thanks again, calibration, i want to talk about calibration. you know if you have a pick-up truck that can hold two tons and you put five tons in the back, we shouldn't be shocked it can't get up to speed. it's sluggish, it doesn't have the performance it did. no matter how much air you put in the tires. i think the fed and zero interest rate policies is like air in the tires, we're missing the big picture. they've recalibrated the economy and we're getting exactly what we deserve based on the calibration. tell me where those statements run correct or whether you agree with them. >> i think there's a big difference between putting a load in a truck and expanding

the money supply, which is what they've done as a way of stimulating the economy. because the opposite of what we've seen from that, was the experience in japan, where they went into the zero bond and they had trouble getting out of it. i think the effort at that point was ripe for monitory policy. what we're seeing is there's a focus rather than on whether they're going to raise rates, to when and how. and that's what we've seen from the last two, the minutes of the last meeting and chairman yellen's last speech. >> you know, i get the impression when i listen to all the voices, read all the statements, list tonight press conferences, that they do want to normalize, but i get the impression that once they do. we're going to go through many meetings where they're going to swear on a stack of bibles never to do it again. is that the impression you get, sir? >> no, i do not get that impression. i don't think, it's a perpetually moving target. i think, i would hope the markets would pay attention to what chairman yellen said the

other day when she said the purpose of monetary policy is to anticipate what's going to happen. so she's talking about getting out ahead. addressing the lag factor. which is the same thing that william mcchesney martin said 60 years ago when he said the implementation of monetary policy is to take away the punch bowl before the party gets going. what we're seeing is a varation of a 60-year-old theme. >> all right. now, let's stick with the notion of guidance. now you disagree, it seems to me, though, that at the end of the ordeal, normalizing rates, we hear comments like we're not going to do it a quarter-point at a time every meeting. why doesn't the fed take their paintbrush, retire it quit putting themselves in a corner and do whatever looks normal every six weeks, based on the fluidity of the u.s. economy? will we ever get to that point? >> we certainly will. as soon as oil prices quit dropping 40%, the dollar quits gaining 30%, against the euro

and we have a tough february winter. so in all cases the fed has to respond to all the exogenous events going on. >> i think in a world where we're $35 trillion more in debt. we're going to have to have this conversation again in six weeks. >> let's go back to kayla. >> thank you, mark. when we come back, running a start-up and participating in extreme sports. apparently have a lot in common. we go behind the phenomenon that is kite-boarding and why it's so popular in silicon valley more when "squawk alley" comes back. ♪ ♪ at chase, we celebrate small businesses every day through programs like mission main street grants. last years' grant recipients are achieving amazing things.

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it turns out the extreme sport of kite-boarding and running a start-up have a lot more in common that you might think. >> okay. it's harder than it looks. >> so just keep it -- >> let go, let go. >> a lot harder. >> i'm okay. >> the process of going through the learning experience i think is very similar to business. too. >> are you ready to get in the water? >> i guess. >> that was suzy mai, one of the best kite-boarders in the world joining me, joining me is her business partner bill tide joins frus san francisco.

good to see you again, welcome. >> nice to see you. >> you've been in the game a lot of time, you've helped to bring a lot of companies public. i'm not sure people understand or realize what a phenomenon this sport is among a very tight group of people in the bay area who are involved in start-ups. why is that? >> i think a lot of people who are interested in start-ups have the kind of personality that lends itself to extreme sports. they just kind of aggressive go-getters that like to try and experience everything. >> so you create this group called my tide global with suzi mai, you go around the world, part ted talk, part kite-boarding lessons and you hear pitches and you hang out on the beach. what actually gets done there? are there real similarities between finding someone who does this and finding someone who can run a business? >> you know, i think at the stage we're at in technology, where there's a lot of sort of young people that just take

control of their own destiny and kind of start coding stuff up and a lot of companies, i think there's overlap. there's a certain kind of person who is willing it take on the world and the environment and try to make a business for himself. i think the kind of person that kite-boards has that personality. >> bill, i think larry and sergei helped popularize this, right? there's a photo that larry posed to google plus a few years ago of him kite-boarding. with the economy booming as it is in san francisco in particular how much does that feed the excitement behind a sport which requires quite a bit of disposable income? >> you know, so i think when kite-boarding got off the ground in 2000 or so think it was kind of one of these corner case sports that looked kind of difficult and you're right, the start-up costs to get into the sport, it's not crazy. but it's not free. and i think when, when larry

started to put pictures of himself kiting, i think that inspired thousands of entrepreneurs around the world to consider trying the sport. >> bill, how do you curate this group? beyond being able to afford this. what do you look for in someone that you're willing to extend an invitation to participate in this. >> well it's sort of a self-selecting group. think a lot of entrepreneurs that are out there kind of hustling and trying to get their businesses off the ground, they're out there talking to other entrepreneurs. i think starting a company is something you can read about in a book, but the experience is something that can't be really read from a book. people, it's sort of a word of mouth experience trying to get a company off the ground and people that have come out to experience the community and the camaraderie of a lot of start-up ceos, putting their business together and finding advice and funding and teammates on the

beach with us. it's kind of grown organically. >> having seen you do this, bill, i'm impressed, because i obviously need a lot of work before i get up on the board. it's good to see you again. hope you'll come back soon and talk more business. >> thanks, carl. >> bill tide joining us from my tide global. you can catch bill and see more kite-boarding action tomorrow night during the premiere of the new high, extreme sports. beginning at 10:00 p.m. eastern here on cnbc. when we come back, silicon valley loudly supporting the golden state warrior victory last night. some of the best responses from the tech community, when we return. you probably know xerox

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the golden state warriors winning their first nba title in decades. beading lebron and the cavs last night in game six of the fims. the warriors play right near silicon valley and a lot of cheerleaders from the tech world spoke up last night, jack dorsey wrote, this has been such an amazing series wow #nbafinals. twitter's adam bain wrote so happy, congratulations peter gruber and chad hurley,

unbelievable #champs. you put in #nbafinals and you get the nba logo. some of the touches were very nice. >> i don't know if the bay area realizes how good they have it first the giant and then this team. all the team play. we'll see if they can keep it together. they'll have to pay some of those guys a lot more paying forward. >> rarely do you see a tournament with two sint rela stories. cleveland hasn't had a major sports title since '64. the browns took the nfl championship. >> the ratings all-time high for the finals on nbc so disney will enjoy that. "jurassic world" has been dominating the box office. it shattered opening day records. the producers of "the avengers" has responded. marvel studio congratulations to "jurassic world." >> chris pratt writing on the back of a dinosaur for those who couldn't see.

>> chris pratt is in "guardians of the galaxy," it's probably marvel saying, you don't have to choose, we love you, too. we'll have some sequels over there. that does it for "squawk alley," keep your eye on the dow. some of the bids have been lost, as we get closer to the fed statement and the presser. now to headquarters and the half. thanks so much. welcome to the halftime show, let's meet the starting lineup. joe terranova sheer with jim lebenthal and pete najarian. our game plan looks like this, stock shock, one analyst says to sell bristol-myers and our desk is fired up about it. is our call of the day a bull's eye or simply full of bull? the right fit as fitness company fitbit prepares to go public. we take the pulse of this latest and greatest ipo. kayla with what you need to know. the fed's decision on interest rates, just two hours away now, but it's janet yellen'ss