♪ ♪ good tuesday morning and thanks for joining us on "squawk alley," carl is out, but simon hobbs is here for the whole hour. jon fortt is here as well. we have a lot going on this morning. first, let's check in on the markets which are holding in positive territory. right now all three major averages are positive. by just about a third of 1%. it comes as the eurozone is set to discuss the latest proposal from greece in a conference call that will take place at 1:00 p.m. eastern. former greek prime minister george papandreau will be with us live to break it down in just a few minutes. we're also keeping an eye on

livingston, new jersey, that's where in just a few minutes from now, governor chris christie is expected to announce he's running for president. we'll get you there live as soon as he starts speaking and it's also a big day for apple. apple music officially going live just at the top of the hour. walt mossberg spent about a day with the service and he'll join us with his review in a few minutes. it is greece that's taking the headlines. the fact that we're hours away from a potential default in $1.6 billion in a loan from the imf. the greek officials wii would like to reach a last-minute deal. german chancellor angela merkel says she's not aware of any deal. >> barclay's chief economist is with us, we'll be aware that we have this offer apparently coming from the greeks, what chance does it have of success

now as we tick down to the end of the bailout as it stands at the moment. >> i would say not a very high chance. they had the opportunity to table an offer and this appears to be an offer for a two-tier program. if they were not able to agree on a program extension, it looks a little odd that they would agree on a full two-year program including osi debt relief. so it doesn't sound, it doesn't look very credible at this point. >> yesterday john claude junker accused the greeks of distorting the way in which they had made their counterproposals. before of course they unilaterally said let's have a referendum. what do you think the game of the greek side is now to come through with this type of measure, if as you basically say it's a nonstarter from the beginning. to whom is tsipras playing? >> i think tsipras is trying to

show they're trying to compromise and find a solution up until the very last minute. which is basically today. by midnight when the program expires. >> you also see a little bit of posturing on the side of europeans, they just call a euro group for 5:00 p.m. gmt time. i think they're both playing a little bit that game of saying look we are trying to be at the table and the europeans are responding sure, we look at your proposal and we examine it and we'll get back to you. think they're both playing, responding to each other. >> antonio, you will know that earlier today, angela merkel said she wasn't aware of an offer. the bailout will expire tonight. if the second bailout, with all the cash that's in it expires tonight, how level is the playing field? legally is the thing dead in the water?

>> well, certainly the second program ends tomorrow. that is for sure. both parties have said they will continue negotiations. that is also true. it is it will be i thing very unlikely that they will strike a deal after the program expires and before the referendum. i think serious negotiations will probably only happen, either because they really come with a genuine program you know and general agreement before midnight, or after the referendum. a program extension, not a a full-fledged two-tier program and the program extension is clear it has to be on the conditions of the friday deal. >> but there's still questions, antonio, of the conditions of any such deal and european leaders have presented rare but united front on this issue and greece is not only set to have to pay this payment by midnight, tonight, but also it has 3.9 million to the ecb next month.

is this a conversation we're going to keep getting ourselves into if in fact greece does reach some sort of a deal whether it's a temporary deal or otherwise? >> i think that the situation will be cumbersome for several weeks, if not months. if we head into the referendum and defending on the outcome of the referendum, you get two quite different paths, you get into a yes vote. you probably could go into a national coalition, that looks like a likely outcome. then you do have the institutions reengaging with this potentially new government. the second path is the no path. the no vote. and there you know, are you in a very difficult situation at that point. with other programs, it is very difficult to say how you can prevent an exit.

i think these two branches are quite different. the first one you may not see initially a default. in the second no vote i think it will be having an increasingly more complex. >> it's been a pleasure listening to your analysis. ar tone yoe garcia pascual, barclays chief economist joining us from london. for more, our michelle caruso-cabrera is live in athens with the latest. i believe with a special guest. >> yeah, let me tell you the proposal from the greeks appears to have been leaked to politico.eu. i've looked at it briefly. very short on details, they want to exclude the imf, it will be tough to get through the german parliament. let's get to the big headliner of the hour. the former greek prime minister george papandreau is here with us at our live location, great to have you here. >> nice to be here, michelle. >> you wanted to have a referendum on whether or not to stay in the euro and the

european union was completely against this and it made you not do it. they forced you not to have it. prime minister tsipras essentially seals to be doing the same thing. is this a good idea? >> i always wanted the greek people to have an ownership of the program. actually the referendum would have been object our adjustment program, which would have guaranteed us staying in the europe. if we had a yes vote. had we done that in 2011, think we would have been out of the woods now, we would have had a wider consensus, a mandate to make the changes in greece, to move forward and what happened was we changed governments, went twice to new elections slowed down the process and it became less of an odyssey. more of a sisyphus kind of a punishment for the greek people and the austerity. my proposal was different from what mr. tsipras has done. i had an agreement, it wasn't a

nonagreement. i said let's support it i said yes, no the a no and i gave a period of time one month for people to debate it not just five days. i also did not have the consensus that mr. tsipras has. he does have a wider consensus of parties that do want an agreement. so actually he is proposed something which now is dividing the greek people because there's a wider consensus for an agreement but he is saying as government, don't vote for this. i do hope and last moment today, is the day when the program expires, even at the last hour, we do have an agreement between the creditors, between our eurozone partners and greece, the greek governments, that's my appeal. >> the vote as it stands and the way it's worded right now, how do you think it will go on sunday? >> it's very difficult to say. on the one hand i can understand very much people after five years of austerity. loss of 20% gdp, 50% youth unemployment. they say how long it's going to

last? we're being told what to do on the other hand i think it's very patriotic to say yes, that is the only way for us to possibly remain in the strong core of europe. but also to make sure that we will have a smooth adjustment not an abrupt one coming, leaving the euro where we will be suffocating after monday, the no vote. slowly or quickly. some government would then very much say let's start printing drachmas and move out because we can't find anything, any help anywhere else. i also believe that many of the greek people do see that the european union or the eurozone members have made mistakes. the emphasis on austerity rather than reforms which i believe was not the symptom but the deeper reasons we had a deficit. the emphasis that this is only a greek problem which it was not, it was a wired eurozone problem.

the fact that we have recessionary policies or austerity policies throughout europe where we needed growth policies. now we have qe, but we have it in 2015, not in 2008. these are the type of policies that have put greece a more difficult situation. to adjust and reach out to the markets. >> we saw raising taxes, cutting pensions, but never things to reduce bureaucracy. to open closed professions, things that would have made the greek economy grow by now, why was it so hard to do reforms in this country, whether it's a leftist government, the previous government which was a right-wing government. none of those key reforms ever got done. >> with my first meeting in 2009 with my partners in the european union. i said don't look just at the deficit. as terrible there was -- it was huge and it was also misreported

by the previous government. and we'll deal with that. but underneath is a huge burkcy there's a lot of graft, waste, where we need to create a much more functioning democracy and state. that's what i'm going to tackle. i put everything online. every expenditure online. i put e-procurements and e-medicine which we cut down 50% the cost of medicine. we gained 2.5 billion. we restructured the local governments, we opened up bank accounts for tax reasons. so we really started a lot of reform. we did reform the pension system, we rehauled the pension system, there's still things to be done. we opened up professions, but a not of this needs implementation, this is where unluckily there wgerhart schroeder, the former chancellor

of germany said we could not do austerity and payback at the same time. the creditors didn't want to deal with the deficit. it was very high. that politically was very difficult to do and have reforms at the same time. now what we need actually is at this point we need less austerity, we've reached a primary surplus and much more reform. i would have wanted to see this government say, yes, exactly what you said, let's look at the tax system, the bureaucracy, the justice system, let's have a well-running government and keep the austerity issue much less, much more -- >> one more question, is greece still in the euro six months from now? >> i would hope so. despite the many voices that say maybe it's better outside the euro. i know it would be a catastrophe for the greek family, for the greek pensioner, for the greek economy, we have made the adjustment. we have made huge adjustments, we have cut a deficit of 15.7%, reached a primary surplus. it would be terrible to have a new adjustment at a time when

the greek economy is quite weak and it would really hurt the greek family. i hope that the greek people first of all will say yes in the referendum. even though we're not really sure what the plan is but i think it's a yes on the euro. staying in or not. and have a new government which will negotiate in good faith with our partners and they in good faith will help us, help greece, rear structure. its whole economy and do its reforms -- restructure. >> mr. prime minister, thank you so much for joining us. >> thank you. >> during this tough time. guys, back to you. former prime minister of greece, george papandreau joining us. >> thaw for that great reporting. coming up, it's launch hour for apple music, details on the much talked-about streaming music and what it offers. according to reports, uber was recently losing close to $5 million a year. what it means for uber.

and a live shot in livingston, new jersey. where in a few minutes, new jersey governor chris christie is expected to announce he's running for president, we'll get you there live, "squawk alley" will be right back. ♪ every auto insurance policy has a number. but not every insurance company understands the life behind it. ♪ those who have served our nation have earned the very best service in return. ♪ usaa. we know what it means to serve. get an auto insurance quote and see why 92% of our members plan to stay for life.

[car engine] ♪ introducing the first-ever 306-horsepower lexus rc coupe with available all-wheel drive. once driven, there's no going back. governor chris christie speak at a town hall event at

his home town in livingston, new jersey, expected to announce he's running for president, les take you there live, here's new jersey governor chris christie. >> the friends, family and the love that i've always felt for and from this community. when i decided to make this announcement, there wasn't any choice, i had to come home and livingston is home for me. and i want to thank sheila goldklein, a dear friend of my mom's and a wonderful representative of this town for welcoming us here today and i want to thank my friend lynn gr on eny some of you may be confused, it may be that you thought she was being booed by her high school classmates, she was not. for reasons that i will not

explain, lynn's nickname in high school was "the juice." hence, it's not a boo. it's "the juice." and lynn, thank you for being here. i'm also here because this is where my family raised me. you'll hear a lot and have heard a lot from me about my mother and father. all of us know that for good and for bad, where we come from is from our parents, and so, you heard sheila and lynn both talk about my mom today. i'm here in livingston because all of those years ago my mother and father became of first of either of their families to leave the city of newark and come here. and make this home for us. my mom isn't with us today. but i feel her. and my dad is with me here today. i'm really, really privileged to have him.

>> they raised my brother and i, brought us here to livingston when we were four years old and two years old. and then our sister, dawn, joined us a few years later. and this is where we grew up. these are the fields we played on. these are the playgrounds we played on. this is the school we built our friends with and came and learned with. and up until i left to share a room with mary pat, i shared a room with todd the entire time. it was a smooth transition. and my sister dawn and todd are as big a part of today as anybody else and they're both here and i love them both, thank you.

>> everyone thinks i'm the politician in the family. we did a coin flip when we got married. i called tails, tails never fails, so i'm the guy who ran. but the politician just as good as me in the family is the woman that i met all of those years ago at the university of delaware, from a family of 10 people, people say why aren't you shy in a crowd? i said you should see the family i married into. my wife has been an indispensable part of everything that i've done with my life. over the last 30 years. and she is largely responsible for the four amazing people that you see standing with her. ever since i've been governor i've been happy to use the veto at home, too. and so far, so good.

i have not been overridden there, either. so i'm glad they're here today and for andrew and sarah and patrick and bridget, i couldn't be prouder of four children than i am of them. i told you my parents moved to livingston and they moved to livingston to make this part of their fulfillment of their dream. of their version of the american dream. they both loved their fathers. at a young age. and were raised by extraordinarily strong women. under really difficult circumstances. my dad, one of the best students in his high school class. admitted to columbia university because his father passed away, he couldn't go. they didn't have the money.

he went to work and he got drafted into the army and came home. and went to work at the brayer's ice cream plant in newark, new jersey. he decided after he met my mom, that was time for him to make more with his life. he went to school at night at rutgers for six years while working at those jobs during the day to get his degree in accounting and my mother, one of the proudest pictures that she ever had was the one she called our first family picture. it was my mom and dad on the day that he graduated from rutgers in june of 1962, the first person in either of their families ever to get a college degree. it was a first family picture because she was six months pregnant with me. and the smiles on both their faces that day, were indicative of what not what they had accomplished. but what they saw coming ahead of them.

their smiles were about the fact that they thought that nothing was out of reach for them now. they had each other, they were building a family, they worked together and then with the help of both of those strong women, they gave them $5,000 each. probably all the money they had in the world. to put a down payment on a house in this town to give their children a chance. to take the dream they had started to build and to make it even bigger and even better. so i not only think about my mom and dad today, i think about my two grandmothers. women who raised children largely on their own. women who knew how to work hard and knew that the hard work would deliver something for their children. and i know that both of them are watching today and part of today is a fulfillment of their dream, too, i'm thinking about both of them.

one of the things my mother always used to say, all the time to me was christopher, if you work hard enough, you can be anything. she said god's given you so many gifts, if you just work hard enough you can be anything. and that story is proof, it's proof parents who came from nearly nothing, except for the hard work. parents who brought little to their marriage except for their love for each other and that hard work. and that hard work not only produced a great life for me and my brother and my sister. but think about how this amazing this country is. that one generation removed from the guy who was working on the floor of the plant of the breyer's ice cream plant, his son is the two-term governor of the state where he was born and raised.

>> see, see, that's not only what my parents have done for me, but that's what new jersey has done for us. see, this place, this place that represents the most ethnically diverse state in the country. the most densely populated state in the country, we're all different and we're all on top of each other like you're on top of each other in this gym. and what has come from that, what has come from that is the absolute belief that not only can all of us achieve whatever dream we want to achieve because of the place where we live and the opportunities it gives us, but that we not only can do it together, but we have to do it together we have no choice but to work together. this country needs to work together again. not against each other.

>> when i became governor six years ago. we had a state that was in economic calamity and $11 billion deficit. out a $29 billion budget. a state that had raised taxes 115 times in the years before i became governor. a state that no longer believed that any one person could make a difference in the lives of the people of this this state. so we rolled up our sleeves and went to work and balanced six budgets in a row, refused to raise the taxes on the people of this state for six years. we made the hard decisions that had to be made to improve our education system. we reform tenure for the first time in 105 years. we made the difficult decisions

to reform pensions and health benefits and continue the fight today. we have stood together against each and every person, every cynic who said why are you wasting your time? the state is not governorable. we proved not only can you govern this state, you can lead it to a better day and that's what we've done together. >> and now we face a country, we face a country that's not angry. when i hear the media say that our country is angry, i know they're wrong. last year i went to 37 different states across this country in one year. i met people in every corner of america. and they are not angry. americans are not angry. americans are fill with anxiety. they are filled with anxiety because they look to washington, d.c., and they see a government that not only doesn't work any more, it doesn't even talk to each other any more. it doesn't even try to pretend to work any more.

we have a president oval office who ignores a congress and a congress that ignores the president. we need a government in washington, d.c. that remembers you went there to work for us, not the other way around. >> and both parties, both parties have failed our country. both parties have stood in the corner and held their breath and waited to get their own way. both parties have led us to believe that in america, a country that was built on compromise, that somehow compromise is a dirty word. if washington and jefferson and adams believed that compromise was a dirty word, we would still be under the crown of england. and this dysfunction this lack

of leadership. has led to an economy that's weak and hasn't recovered the way it should. it's led to an educational system. that has us 27th in the industrialized world in math and 24th in science, it's led us do weak leadership around the world. where our friends can no longer trust us. and other adversaries no longer fear us, the weakness and indecisiveness in the oval hofs has sent a wave of anxiety through the country but i'm here to tell you that anxiety can be swept away by strong leadership and decisiveness to lead america again. we just need, we just need to have the courage to choose. we just need to have the courage to stand up and say enough, we need to have the courage to course a new path for america. america knows the new path.

it knows where we need to go. it must start with this. we must tell each other the truth about the problems we have and the difficulty of the solutions, but if we tell each other the truth, everybody, we recognize that truth and hard decisions today, will lead to grout and opportunity tomorrow for every american in this country. what, what are those truths? what are those truths? those truths are that we have to acknowledge that our government isn't working any more for us. we have to acknowledge that and say it out loud and we have do acknowledge that it's the fault of our bickering leaders in washington, d.c. who no longer listen to us and no longer know that they're suppose to be serving us, we need to acknowledge that -- all of that anxiety and those failures are not the end, they're the beginning. the beginning of what we can do

together. what we need to decide is that we can make a difference. that we can stand up and make a difference in this country. you see, that's why i love, that's why i love the job i have. that's why i love my job as governor. because kids ask me all the time. the fourth graders who come to the state house, every week. they ask me, the two questions are always asked. one, what's your favorite color. always. second, they always ask me, what's your best part of your job. and i always tell them it's that i wake up every morning knowing that i have an opportunity to do something great. i don't do something great every day. i'm human. but every morning i wake up with an opportunity to do something great. that's why this job is a great job and that's why president of the united states is an even greater job for a greater number of people.

i have spent the last 13 years of my life as u.s. attorney and governor of this state fighting for fairness and justice and opportunity for the people of the state of new jersey. that fight has not made me more weary it has made me stronger and i am now ready to fight for the people of the united states of america. america is tired of hand-wringing and indecisiveness and weakness in the oval office. we need to have strength and decision-making and authority back in the oval office and that is why today i am proud to announce my candidacy for the republican nomination for president of the united states of america.

>> and so governor chris christie becomes the 14th major republican to declare himself for 2016. let's bring in jon harwood from just outside where the governor is speaking. jon, can he win this? >> simon. here you're seeing chris christie trying 0 to display the one remaining asset he's got in this race. he's got a ton of political problems, but he does have a forceful personality, a magnetic speaking style. you just saw it in those remarks, he cast the challenges facing the country as ones requiring guts, straight talk, leadership, all the things that have been core to his persona. as governor of new jersey. he also has a state that has seen its credit rating downgraded. he's got a major scandal over bridgegate. he's got lots of problems, a pension reform fix. one of his straight talk

achievements, compromise achievements early on that's not worked out as planned and payments have been missed this is someone who is a much diminished figure. a couple of years ago. many people thought he was going to be the front-runner for the republican nomination. he's not anywhere close to that. got a majority of republicans who say they wouldn't consider voting for him. his aides are still believing in the power of his personality. they're trying to make it work with a particular eye on new hampshire. which is a somewhat more moderate state. in christie's region in the country. he's hoping to get some traction and make a braeak through there. >> you talk about how governor christie has lost a little momentum over the past few years. >> a lot of momentum. >> i'm wondering what you see now as what sets him apart from the rest of the pack that's become very crowded. he's touting his modest roots,

family value, bipartisan act to compromise. do you see that as enough to set him apart? >> no on its own. what he's counting on is his personal forcefulness and magnetism. that has a good side and bad side. we've seen the videos of chris yistie yelling in constituents in ways that some people think is off-putting. but on the other hand, he has a directness about him which is appealing to a lot of voters, that's why in the first place a couple of years ago. he was considered as a running mate for mitt romney. he delivered the keynote at the republican convention. he was seen as somebody who could lead the republicans back by breaking through in blue states. but he has come way, way down the mountain terms of his political stature. he has to try to get back up there. with so many people getting in, many of whom are also quite flawed candidates, i can imagine him sitting back and thinking if

bobby jindal can run, if rick perry can run, if other who is are tarnished can run, why can't i? >> he has said for years he loves the job he has. we will see how the race shapes up as he runs for potentially a new job. jon harwood in washington, thanks. the first half of the year for european equities. worth pointing out that the broader market, the stock 6 hurn is still up 12%, durs the course of greece is front and center. two things about to happen. on the where hand we'll get official confirmation that greece has not made its imf payment that isn't a default. a delayed payment within a kind of private agreement in legal terms. the other thing that's about to happen tonight is that officially the second bailout of greece will end. the pot of money the previous governments have negotiated with the greeks will in theory no longer be there. now this is the scene in athens today. there have been some last-minute

moves from the greeks, they propose effectively a third bailout. they would like access to the restructuring mechanism for two years to meet their financing and restructure their debt. most people don't believe that's going to fly. however at the eurozone finsteres at the greeks' request will talk by phone at 1:00 p.m. new york time. the rest of europe will be playing it by the book. if greece is going to exit the eurozone or if a government within the european project is going to fall, nobody wants the historians to go over this and say they didn't play it by the books. so that's the process. angela merkel was talkinged into berlin when we first thought we might get something from the greeks. she said -- she was explicit. saying bailout program will expire today. she's open for talks after today. once the bailout program has gone. in the meantime you have, i mean the big focus for the greeks is the referendum on sunday.

will the prime minister get the no vote against the creditors that he wants? he has said to the rest of greece, as far as he's concerned. europe won't let them go because the greek exit is too expensive. rbs has run the numbers on a greek exit. the sovereign and the private debt assuming that the new currency is worth 40% of the euro. their conclusion, a greek bailout would cost the eurozone $239 billion. about 2.4% of eurozone gdp. rbs says that is a manageable sum. however if they were to restructure the greek debt. it would probably cost them about half of that. so for the yoerngs the moeurozo optimal outcome is to restructure the debt to 11%. the biggest cost by far says rbs is a greek exit on the greek

economy. though arguably that's not what the greek prime minister is telling his people. up next, apple music is officially live. i've got it here downloaded on the phone just a couple of moments ago. according to walt mossberg the service is quote rich robust but somewhat confusing. walt joins us live to explain.

apple music just launching

this morning. walt mossberg has had the chance to test the service for about 24 hours. he calls it rich, robust, but a bit confusing and joining us now is re/code co-executive editor walt mossberg. >> i read your review, i was geing tired just reading it. and all the various features that they packed into a single app do they need to take a lesson from facebook and split this thing up? >> what i think is, is when i wrote. based on one day, jon. which is it's to me it's the best, richest, deepest streaming music service i've ever tried. i liked beats music which was its predecessor. i think this goes even farther in terms of not just dumping a big catalog on you, but helping you figure out what would be the best thing for you creating these human-curated play lists and it integrates well with

itunes. the point i made is, it's got so much in it that it's going to take you time to figure it all out. walt, there's a lot in here that spotlight fi has got already and spotify has a free tier. you say this is the first service that you'd be compelled to pay for. there a lot of people who are hardly compelled to pay for anything. what's the case going to be for those people to switch from a free option to this? well first of all, some of the free options including spot dpi have various limitations that their own paid option take-away and apple will not have those limitations, either. skip limitations, limitations on playing one particular song. that kind of stuff. but it's hard to compete with free and that's going to be the really interesting challenge to watch. city think we all know the power of apple's brand.

once you update, you can wrup date right now to the new ios version and i assume any future ios versions is will give you a new music app that has this built in with a three-month trial, won't force you to subscribe. but it will give you an opportunity to use it for free. the other thing apple has is a way to get closer to free. yes, there is some family plans and group plans in some of the other services. but i think apple's will work out to be the cheapest. it's $15 a month for up to six people and each one of them can have their own individual experience that isn't mixed in with the others, so $15 a month divided by six is a pretty cheap price that i think will be hard for other people to match. >> so walt, is this a generation am turning point? i mean for those of us that digitized our cds, do we throw, do we throw those away now?

do you throw away the storage boxes for the itunes? is this a turning point? do we consume muse nick a completely different way. provided that you can afford the $14. 9 for family. >> or $10 a month for yourself. it's a great question, simon. i think we're not quite at the turning point. you you could say apple joining this is a turning point. just because steve jobs always hated these streaming music services or the idea of it. so apple joining it is a turning point. but a very small percentage of all the growth has been in streaming, a very small percentage of people are paying for streaming services, i'm not sure we're at the turning point in the overall market yet. in terms of the cds, and those cd boxes, i'm like you, i started out a long time ago ripping cds and ripped hundreds of them. but simon, my advice to you is

throw the boxes away. throw them away. walt mossberg of re/code. how is he supposed to recite the latest drake tunes if they don't put the lyrics in there? how, how. >> the burning question. >>or more on apple music. let's turn to jason kalicanis, does it launch with a wimper or a bang? apple music? >> i think it's going to be a

great product. walt liked it. it speaks involves, if he loves it, it's a great product, period, full stop. so if you look at spotify. 20 million paying members, it's future of music. it's part of a trend where millennials and a lot of us want to simplify our lives and not collect a lot of stuff. we used to collect movies and dvds, some people wanted to collect a second home. now a soakedor third car, now it's uber and lyft. and music, who wants to have all of these cds around? people want simplicity in their life and all of these new services give you what a want, when you want it for a fair price and $10 a month. $15 a month. if you add it up it's a half dozen cds a year, 10 cds a year. >> it's like paying more to rent than to buy. do you think that's the economy

of music that we're in. that people will spend dumb what they spend on average to buy and own this music just to rent it? >> yeah, you know i think it's $10 a month is a pretty reasonable fee and that's why spotify has 20 million members, it's pretty extraordinary when you think about it. people are voting with their dollars. for a start-up to hit 120 million paid subscribers is incredible. i'm not shareholder, just a fan of the service. the consumers are speaking by putting their credit cards in and using the free options like stealing off of bit torrent or using youtube or pandora with the ads. young people, two latte sas is pretty fair price a month. >> september 30th when the free period runs out for all the other services that either don't charge or charge less right, because there's a community of people who haven't tried streaming, probably going to try this and then when they start getting charged $10 a month.

they're going to think, what are my options? >> yeah. i think this is people are like, this is terrible for spotify. or rap city or the other services. once people realize you can actually download the songs and keep them so when you're on a plane, or you're in a low coverage area you have the songs downloaded to your device, that's a feature that most people don't know about that the paid services have that free services don't. so you can just say give me these last five david bowie albums or give me these five albums and you'll have them ourn phone, downloaded. >> what are the barriers to entry here? is the deals that apple has had to and the other guys or the technology, is that a sufficient barrier to entry or do you commoditize this over time? therefore the price falls so it becomes almost anything jebl or

negligible. >> you have to build a brand and you have to negotiate with the music industry constantly so if you talk to shawn parker who has invested a ton of his own money in spotify, this is a hard business to run. very defensivible. i don't think you're going to see hundreds of players in it jay-z bought tidal. it's a bit of a disaster and he's tens of millions of dollars into it and it's going to be hard. i think they're very defensible. i think you have to keep it rating and revving the product so regularly to add features, spotify added podcast and video now. that these services will start to look like cable networks, little mini viacoms or time warners with three or four different content times. >> we've got to move on now. >> uber has $470 million on operating losses on about $450 million on revenue.

it wasn't clear on whether the numbers were the result of a quarter, a year or some other time period. the report did say the numbers were present paid third party as part of a debt fundraising round. uber reportedly raised about $1 billion from a chinese backer signalling it could be close doer an eventual ipo. you expect companies operating at break-neck growth to be operating at a loss. uber said its revenue doubles every six months, do these numbers surprise you, $415 million in revenue seems a little small. to be clear i'm one of the first investors in uber, i don't knowing they about the operation of the company and i don't speak for the company. i can tell you that the company did say those numbers were a little bit older on the older side. that was the official statement from the company. not surprising to look at numbers like those when you're investing in 300 cities and if you look at their most extraordinary product, that's called uber pool and uber pool

might not be for the cnbc audience where you don't want to share a car. but many of my employees are using uber pool in the cities where they offer it when you're on your way to a destination, be it work or the airport, they're willing to pick up another rider. which means there's typically two, sometimes even three people in a car, you split the cost for every two people in a car, you can take one uber off the road and there's a concept of a perpetual ride, which means the cab is never empty. it's always 100% utilized. if if it is, you don't need to worry about downtime, the big costs in the cabs and lincoln town cars and whatever else. what i'm particularly excited about as an uber investor and citizen of cities, is this is going do take a lot of cars off the road and it's highly defensible if you can make it work. i think that product takes a lot of investment, but it's worth it

for society. we share the cars and lower the cost of trucks so a new class of people. can got last mile home, the last two miles home for $4, for $3. people who are taking it. taked to one employee who said isn't this annoying to get taken ten minutes out of your way and she says it takes half an hour less than taking the bus. ten minutes is a lot less than half an hour and it costs only $1 more than the bus, to save those 20 minutes. >> we did show the official statement from uber that the numbers were substantially old. the point is that people generally think of a company worth $40 billion to $50 billion. would have more than $415 million in sales. but for now we have to leave it there. >> that's definitely an older number. jason, thanks so much. well of course the big talk is greece.

and how much has greece added to the slipperiness of some of the markets, whether it's a fixed income markets or the foreign exchange markets. i guess the storevy should start with greece itself. there's a lot of debate as to whether greece is going to stay or greece is going to go. who exactly is motivated to do what. there was a great piece on cnbc ten minutes ago to a cost standpoint. cheaper to let them stay than go. that's with the asterisk that we know what's under the hood of the balance sheet of greece and the central banks and a lot of collateral leverage issues. i think you could boil it down to two things. five years, and five years. maybe two more, seven years. if greece wasn't important, we know the balance sheet isn't huge. why would they be going to such great lengths to swallow their pride and basic allow a country to fail to do reforms to continue to get subsidized, to

me that's the question and only one answer, it's more important to have greece in than greece out and the reason is political. it will show a crack in an experiment that's already potentially on thin ice. i will continue to to say what i said yesterday, they should have passed a constitution. they shouldn't have given up this is cause to think there will be problems down the road. think portugal, potentially spain and other weak economies. but as far as the euro i find this fascinating, let's look at yesterday's rain on the euro. just date range. they had a high of 112.78, earlier in the session we saw the low, 109.8 a. where did it close? 112.36. where did it close the previous day? 111.67. those are close together, aren't they? here's the point, we can't use old rules for anything. whether it's economies, before china was the big megaeconomy they are today.

bru even market movement. we have algorithmic traders. what they do is program themes, buzz phrases, buzz words and a lot of it is day trading, even smaller increments than day trading. so close to close is what you're supposed to look for. right now where is it trading? 11.48. if you want to know what's going to go on with the euro, keep the low of yesterday in mind, 110, 115, a close outside that range will actually give you some momentum on the slippery surface of foreign exchange. sim simon, back to you. >> it is slippery. coming up, the president speaking from the east room of the white house. we'll take you there live when it starts. we live in a pick and choose world.

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we're still holding on to gains in the markets, but closer to the flat line than we were before. traders grappling with puerto rico. which is slamming distressed hedge funds and chicago pmi contracting but it's greece taking the bulk of the headlines. euro group finance minister said to me in an hour we'll be monitoring the headlines. up in the next few minutes, the president is set to speak in a joint news conference with the president of brazil and new jersey governor chris christie in the hour announcing his bid

for the gop presidential nomination. simon, quick note on what to listen for at 1:00 p.m.? >> greeks got a new bailout offer on the table. will they take it or not. >> that does it for "squawk alley," let's send it over to the "halftime report" and scott wopner. joe tear novembe terranova n with jon and pete najarian and steve grasso, director of institutional sales at stewart franco. we are following three big stories at this hour.