>> you got to make room for your kid to live there. >> that's because they can't get the good paying jobs. >> right. >> i am all about jobs, steve. and in this economy i want jobs and i want to focus on growth. i can't stand this acceptance of low growth. i just can't. >> great having you, jack. >> thanks a lot. enjoyed being here. >> wow. make sure you join us tomorrow. let's get to "squawk on the street." that's next. and a good morning to everybody. welcome to "squawk on the street." carl quintanilla is at the conference in california. let's get a look at futures this morning. we are looking for a lower open but we will see how the day

goes. the european markets you ask, how did they fare? let's take a quick look here. they're all in the red, though. not too bad. as for the ten-year note yield and crude oil, the ten-year note inching up from yesterday and crude below 50 just hanging in there, wti down a little more than 1%. let's get to our road map this morning. the ecb leaving interest rates unchanged and we're live in vienna as opec leaders are set for a big meeting on production levels and tesla's musk saying we could see an apple car by the end of the decade. mario draghi holding a meeting now. he said he sees inflation likely to remain low or negative and

sees the european economic recovery proceeding at a moderate but steady pace. nothing too surprising here, jim. some are awaiting details on their ability to buy corporate bonds kicks in. perhaps details will be shared there on what the plans are there, if any. oil prices having moved up, the euro having moved lower seen as a positive but they're still not really getting that inflation. >> but i think what's important is some of these companies are really turning around. germany, we had the car registrations plus 12% last night. spain has 3% growth. italy needs to look by the banks but they're doing that. the companies' idea in you're, it's all good. i don't have any company that i've had on "mad money" where europe is bad versus last year. >> that's a relative good versus bad, right? or are you just saying straight across good? >> straight across good.

>> really? >> straight across good. it's a chance to be able to keep the dollar high, keep the euro low. there's still not enough lending going on. when you try to get a loan say from an italian bank, it's not there, david. and that matters. there's not a lot of lending going on. look, france could use a little help from germany in terms of maybe growing their balance sheet a little, but i see opec, no change in policy. anyone that thought that there was is ridiculous. >> they're nowhere near generating inflation, which is the goal to levels a bit below 2%. >> i've taken europe off my screen as something that i've really worried about, except for i don't want that euro to get really weak. >> and i would assume the potential of the u.k. exiting. i don't know where the numbers are now but brexit is still an issue. >> as soon as you write that off as an issue, it happens.

>> that would be foolish. >> that's very upsetting. i still contend if germany were to use its balance sheet to put people to work and we came up, this is not a statement about russia that i'm about to give, but we heard talk that merkel was talking about the idea that maybe sanctions could be lifted. given, again, when you say something like that, people think you think the russians are good actors. no. that sochi olympics was the peak and europe came down, starting to come back and i just don't regard europe as being dangerous. i think italy refinancing its banks is the last straw. get italy back on track, it's not right now, then i really think you have a good growth in europe. >> really? >> yes, i do. >> and demand. >> you have to get those banks reliquified. they are doing what geithner did to us and they're making every one of those banks raise money.

they waited too long, that's because it's a club, a cartel. >> seven years later. >> better late than never. >> i suppose. >> we have breaking news from brian sullivan. >> how did you know that? let's go to the leaders meeting in vienna. brian sullivan has news for us. >> reporter: opec fails again. as jim referenced, there is no change, according to multiple reports. the press con presenference is w beginning. according to multiple reports, they met for hours and were unable to find any kind of agreement on an output ceiling or production freeze. this is just like doha. what a couple of members wanted was to go in and establish some kind of either a total cap or total output production, or a per-country cap. of course the saudis and iranians could not agree back in

doha, we don't know who the problem was, was it saudi arabia, iran, somebody else? multiple reports suggesting the meeting is just ending with no agreement on a production, on a ceiling. and reports saying that nigeria's representative will be the new secretary-general. people don't care about that. remember, that secretary-general can often be the person who mediates disputes. if you have dispute between iran and saudi arabia, if that person has any influence or power, they might be able to go in. the news, guys, the headline no deal. a lot of optimism this morning and once again, jim, it got us nowhere. nothing got done in opec. >> nigeria is nearing bankruptcy. those guys squawk. they want something. brian, you had a comment this morning on the 5:00 show which was so good. what they want is they all want

to sell more and the absurdity of it, you captured it in a sentence or two. tell is again, i thought it was so smart. >> basically they all want higher prices and they also want to be able to pump more oil. i'd like a unicorn and a lollipop also. it's not going to happen, guys. the reality is that it's every country for itself right now. venezuela is at about 2.8 million barrels a day, nigeria has had a couple hundred thousand barrels down. the other headline is that opec necessarily is not going to be the power that it once was. we've seen this now for a couple of years. everyone was looking for something to turn around. it has not happened, guys. >> brian, we'll be checking with

you throughout the day. brian sullivan live for us at the opec meeting. >> he didn't buy in to all the nonsense. just point blank it's not going to happen. >> i find it hard there was real optimism going in. >> we got to $50 a barrel. that's where our companies can start selling futures, they've done that. put a nice lid on it. i don't think we go much below 40. there's too many banks that need that money. last quarter when the banks reported, they were up a upset they had lent so much credit. so $50 is the level where you can go sell futures and pay off bank of america and bank of america is happy but it does present the problem of more oil on the scene, which therefore makes it hard to get past 50. >> let's go out to the code conference in california, of course where carl quintanilla

joins us. try saying that fast a few time. elon musk has made some comments. >> primetime was saved for elon musk and it was typical musk fas, started late, about midnight east coast time, talked part physics lessons, about theathe a aerodynamics of space and tesla and even whether apple will create a car of its own. take a listen. >> i think they'll probably make a good car and it will probably be successful. the car industry is very big so it's not as though there's, you know, one company to the exclusive others. there's like a dozen car companies in the world of significance. so -- the most that any company has is approximately 10% market share. >> despite all the skepticism

about the production targets, he still sees half a million cars in total by the 2018 time frame, maybe a million, he says, by 2020. a pretty clear path to get there, he says. but they didn't delve too much into what it's going to do to create that production, the likes of which very few factories can do it all. >> what i hear is they can't make the model three. the demand is too great. maybe apple can help alleviate the shortage of teslas in 2020. we've all been discussing that the tesla is not self-driving. is apple's car really -- is he saying that's the one that will make it so this we don't need drivers? >> i don't think he went that far. i would add they're making a pretty deliberate attempt to make this mainstream. tesla has a good here at code con where you can take a spin in a tesla. we drove one yesterday. jim, i know you have as well.

it's an experience that consumers should probably try. i mean, that semi-autonomous feeling. here's me not holding the wheel, going about 45 on a highway. never had to save it really and no torque differential means zero to 60 in basically 2 to 3 seconds. it's a different kind of experience. >> i was trying to go 60. i went 80 in a nano second when i was on the jersey turnpike. it's really incredible. steve jobs wanted to rideun a c by water. does anybody talk about that anymore? >> there's been a lot of discussion here about whether a car in general is a computer. mary meeker yesterday, a big presentation and part of it was devoted to was a car a computer. she believes the u.s. to reclaim

auto, we own the big components and tesla. >> apple is going to be a bit weak today not having anything to do with what elon musk had to say about their entrance to the auto market but because goldman took its numbers down and its price target down. they're still above much of the street in terms of their iphone forecast, guy, but they do lower them based at least on some gardner numbers and weakness that seems to be concentrated north america, western europe. they're taking their numbers down on iphone shipments, their overall estimates down, their multiple remains at roughly ten times ex-cash -- >> there was a lot of -- did i mention there was preeshent ahead of that?

>> you did. ios poised to lose 11% market share. and then she goes on to talk about the rise of alexa, the ai aid in your home -- >> my favorite was a tweet by julia boresten at 1:10 a.m., david, the call comes back to my point, which of you is a simulation and which of you is reality? >> there he is again. >> i think we both know. >> oh, god. who knows. >> the initials are d.f. >> i'm glad he's still talking about the simulation things. >> as long as he lets me continue to do the show as a simulation, i'm thrilled. he seems to like the show enough to let us continue. >> i guess.

>> for being a simulation, david, you recognize human speech really well. it's almost like a real human. >> thank you, thank you. it's many years of working on that on that internal computer. carl, i know we have a little more sound from him. we may have a moment or two to get to interesting highlights. >> sure. here's musk talking specifically about that 2020 production target. >> from tesla's standpoint, we want to take a set of actions that are likely to accelerate the advent of sustainable energy. so scale up production as fast as we can so we accelerated plans for the model 3 by two years and we want to try to get to half a million cars in total in kind of the 2018 time frame, which is an aggressive schedule but i think achievable. and then maybe a million cars a year by 2020.

and i can see a pretty clear path to get there. >> whether or not you believe him and whether or not they'll get the capital to do it sort of leads back to what you say about the stock and that it is a cult. you even believe or you do not. >> they did that giant secondary. excuse my looking at the actual facts here. here's tesla's stock. it's still 4 points above the secondary. they could raise more money. one of the things that's actually true, the demand for the thing, the demand is out of control. when you were driving it, carl, did you not say to yourself, okay, i like it more than when i drive -- right? >> of course. although i will say this -- there's a large 17-inch display and you can plug in, going from l.a. to san francisco. it will tell you every charging station you have to stop at on

the way and it's like four stops at like 20 minutes a stop. so that's going to be a mind shift that consumers will need to make. >> battery. this is fmc technology, makes the battery, panasonic. we're going to figure out how to have electricity where wind is, where solar is and we'll be able to store it nationwide and fossil fuels will go away. did he give you the fossil fuels will go away argument? >> reporter: one more time, jim. i didn't hear you. >> he's also saying fossil fuels will go away over time. >> yeah. >> he's got a clear vision. we're going to mars. i saw the movie "the martian" and -- >> we got to go to a commercial break. that's where we have to go. >> we're going to mars. >> do you look at the time?

it's 9:16. >> he did say if you have to pick a place to die, mars is not a bad place. >> i did see that. very strange. >> carl, we'll check in with you throughout the morning at the code conference. and ken lowe, the chairman of scripps network interactive. >> i need that right now. that's more important than the warriors versus cleveland, right? >> that may be. game one tonight, i believe. there's a look at where we stand before the open, about 13 minutes from now. we'll have it when we come back. y compromise, businesses need the agility to do one thing & another. only at&t has the network,

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opec doesn't reach any sort of agreement on a production ceiling. you can see the responding action in wti. last week above 50, now trading closer to 48. up next, we're going to have jim's mad dash as we count down to the opening bell.

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>> they're concerned about global headwinds and one of those is brexit. he said the european union is prepared for an exit if that happens. he said it presents downside risks to the economy and the european. and 1.6 from 1.4 was the original gdp forecast and 0.2% going to 1.3% next year. he said he's ready to do more

stimulus but wants to see how the current one plays through. on the adp number, this morning we heard 173 -- there's the ecb inflation forecasts. i want to tell up we got a look, 173 is the number but in the that the non-farm pay roll is less. the reason is the union, the verizon strike not incorporated into adp but it will be in the nonfarm estimate tomorrow. >> thank you. >> let great quick mad dash here. >> i've been calling for a company called quick technologies. they got a bid from toma bravo and they're paying 30.50 and

30.22 with that signal there could be someone else coming in. >> that could be pretty tight. we got mercado earlier this week by vista. the demandware deal yesterday. two of them are private equity deals, which is interesting. >> i think this is putting ultimate equity deal. all these companies hate it when you say they're similar because they obviously think they're unique. i've had qlik on a number of times on "mad money" and they analyze big data and they do analyze it. now they all do it in different ways, in different forms, but this qlik is something that i want ibm to move in more

aggressively and i wanted them to buy. >> often times these things have a go shop. they're not getting anywhere near their 52-week high. we'll keep an eye on it, jim. we got the opening bell about four and a half minutes away. stay with us here on "squawk on the street". p?p?o?gv

you're watching cnbc "squawk on the street." we're live from the financial capital of the world. the opening bell is going to be ripping less than ament fr meni now. we have opec today, ecb, oil an issue in today's trading, given that it's lower by about a percent and a half or so. >> the adp was in mind. maybe a little more dovish but it's oil. we just trade oil. >> uh-oh. >> a little early. never good when they go a little early. >> they did it too early.

>> maybe bad luck. >> can't have a stop and a start. maybe we will get that opening bell now. there it is. take a look at the s&p 500. we probably will end up with a bit more red on the board than green given at least how we looked prior to the opening. jumping the gun a bit on the bell. scripps celebrating its recent transfer on the nyse and listing on the nasdaq. we'll speak with ceo ken lowe. >> and skinny bundles. >> we'll talk about skinny bundles, how you can become or still maintain your dominance in certain areas if you're not included on these bunds. >> hulu. my wife watches hulu constantly.

it quite annoying actually. >> why is it annoying? >> because i want to go to bed. >> the annoyance is in the hulu. >> if she's going to do this, i want to put on espn. it's a world of dog pictures and -- >> that's youtube, isn't it? >> she does youtube and hulu. >> i like to watch the program as it happens. i'm a throwback thursday. >> you are a throwback. tens of millions of people will still have the bundle but tens of millions who won't. who won't. >> that does matter. >> it does. >> the key product for the distributor is broad band. >> and that's why comcast stock does not quit. >> that stock has had a good year. the charter deal getting out of the bank. did you see nathanson yesterday, very positive comments about it.

spectrum is the name. i got a personal letter from tom rutledge at home -- >> you did? >> yeah, saying, hey, we're spectrum. i se they sent that letter to everybody, of course. it wasn't to me. if they could only come fix it when it goes out. >> geez, i just was surprised. >> as you should be. >> the s&p is down about a quarter of 1% right now, jim. you said oil is the key. >> key to this market. >> now, the things that are coming out of this code meeting, here's my takeaway. amazon is good, okay. amazon's king. amazon's the best. have you looked at amazon out of this? >> we mentioned amazon. and apple, dead, buried. this is the chapter 11 apple.

it's unbelievable. >> amazon is up a bit and apple is down. even the goldman buying it did take the numbers down a bit. you got a price target that goes from 136 to 124, that's based on 12 1/2 times their new calendar year numbers, where they're at $9.94. >> they waited rather than just piling on at the 93 level. i thought that made sense. there's a deal i have to talk about, it's the j & j deal. i was thinking they'd put more money behind medical devices. they are putting more money behind the consumer products business that some thought was weaker. vogue international, ogx shampoos, procter, weakest area of procter is hair care.

j & j going after procter. alex goreski will not rest. i have nuvasive on tonight. i thought there was a possibility they would buy that. >> instead they buy hair corps hair and styling shampoos. don't look at me. i'm probably not a user. i'm not the demo. >> not the chosen demo for that one. >> did you listen to cracker barrel call yesterday. >> i did not. did you really think i did? was that even a question? did you listen to the cracker barrel call? of course i did. i wouldn't miss it. >> in the old days when i was 210 pounds, they had a slice a alamo with cheddar on it! >> i've eaten at cracker barrel.

it's about the only place you can eat when you're in mississippi. >> the reason i mention it, the reason i mention cracker barrel is you're seeing these companies go up 10% on a given day and that's what i'm looking for. i'm looking individual stocks that just take off. and that's all -- it keeps happening. you'll look at the tape and say holy cow, that one's up. demandware. i always say to people june swoon, sell in may, no, no. look at stocks like cracker barrel, some of these companies that are undervalued in tech and don't give up. did you hear the lululemon guy yesterday? >> i did. >> mr. wilson was saying take that one, let's buy that stock. i'm saving every day there's something that intrigues me and yet people want to leave this market so badly. >> has viacom intrigued you at

all? sherry, his daughter is the aunt -- her niece comes out against -- or comes out in favor of what the board of directors is essentially saying, saying check his mental competency. nothing new at viacom. stock had a great week on the idea that management will be replaced. not a big vote of confidence there but sherry has yet to make that move -- excuse me, mr. redstone. but so many legal can he questions here, it's fascinating, including nia as controlling shareholder, he's the controlling hair shoulder in national amusements but do they need instructions from their controlling shareholders to make the moves? is it an entity? is it a person? can its mental competency be judged? >> rare instances where if the ceo and his team take a big pay cut, the numbers would go up. >> it's amazing how much money

media ceos are paid. >> isn't it outrageous? a little trickle down to the little people. >> i mean, the media is under attack by trump. they ought to attack how much these guys are paid. but they generated some good returns over time. >> some have. a lot of them have been as a result of buying back stock because of the cash flow nature of the businesses. they do get paid to a certain extent on those metrics. >> i think there's just a sense that this company could be run better than it is. >> there's a possibility of getting it together with cbs down the row but we'll see. medivation, they wanted a record date. they requested and they got it.

60 days in which sanofi has to present 50.1% of the shares within 60 days, usually this takes place towards the end. i'm hearing roughly 30% of the shares who are thought much more like live than perhaps some other institutions to be behind that. you would expect, though, there would be a raise in the offer to entice more people to actly written consent but we'll see. the clock's begun. >> the so-called valiant bid. >> unclear how real that was. i would make one point, which is if they came to that board given the ownership of people on that board and where their average price is, for example, mr. ackman, do you really want to crystallize a $40 deal and then the loss that would come along

with that when you still have hope? >> that's a very good point. you can keep hope alive. >> that's right. if they think the stock is worth, $60, $70. >> at least they have to believe that. i don't know giving their ownership they would have agreed to that price. >> it's percolating. and mr. pa pa, he's committed t finding out which prices went up too much, of which there are many. >> tribune. today is the shareholder vote. ganet trying to get a hold. something that comes up often, making a more robust offer to their advertisers you put them

on the wall of shame. >> he's an anti-hof. that unbelievable interview you had did not get enough with the fellow that was able to -- the good doctor. >> he's coming on today. >> get out! how how'd you get him? >> because his company is going public. >> shouldn't everyone like an oak street get that same $15 deal, david? >> he bought that stock above where it was on the market. >> you think tribune was going to go down to 2 or 3 without ganet appearing? he was a savior. what are they doing with that data? >> i'm not sure as of yet. i think the journal was talking about nasty e-mails back and forth, given the allegations the tribune had made. but you had stock 1137. we'll see what the withhold vote

looks like. it has no actual impact, just a psychological. >> an unbelievable saga of greed. >> greed. what's wrong with the greed? >> greed is bad. didn't you see that movie? >> wrong movie. i was in second one. >> you were in the second one? >> yeah. >> you were in so many movies. you earn billions. >> i got that -- >> i was in "ironman." >> i got that hat. >> george clooney at the movies. >> he did not play me. i read the new yorker review. it did not mention me once. it said lewis c.k. that movie would have succeeded if they had lewis c.k. >> i'm going to go watch it. >> you're going to watch it? pay per view, my friend.

>> bob pisani has more on the floor. take it away. >> we are slightly to the down side. in japan prime minister abe making comments. the takeaway basically was the possibility of bank of japan easing seems a little bit off of the table. the yen rallied overnight so japan was weak. germany's been weak throughout the morning. the euro has not been doing very well. draghi, the head of the ecb presented a very tame growth and inflation environment for the next few years. here in the u.s. you were mentioning oil. no opec agreement on the production ceiling. you heard brian over in vienna. that's the weak sector. that's been weak for a few weeks. tech's been a leader but it's down a little bit today. banks also down a little bit. health care, which has been strong recently, is also a bit stronger today. on the surface, people have asked me about the june outlook.

the outlook is not particularly great if you look at some of the macro issues going on. the growth prospects are fairly weak. we've got some foreign exchange issues here. you saw how the yen is hurting japan and there's a number of macro risks out there, the brexit, the fed and we've talked often about the resistance of 2,100 for the s&p. it's failed there numerous times. we are right at the door again and it's sort of failing once more. and yet, yet just look at the market leadership here. this is why it's very tough to figure out the markets. the russell 2000 is perking up. it has been lagging for a years against the s&p 500. it's been performing much better than the last month or so. look at the sector leaders, tech, financials, health care.

this is very healthy rotation in the market and growth and value have both been strong in the last month or so. we don't have a lot of breakouts, that's the one mystifying thing. normally when you're 1.5% from a new high in the s&p, you have people vying against each other. it's not happening. but i'm looking for more breakouts. we do not have it yet. so the bottom line here is this could go either way. there are some macro issues clearly weighing on the markets, full valuation and yet the market holds in there and there as no real indication of any internal deteriorate right now. we note that the breadth has been expanding, the advanced decline line has been particularly strong in the last month. that's a very good sign. let me show you retail stuff here. the monthly retail comp score numbers, comp is down 1.6%.

we were expecting to be up 1%. weak gasoline sales weighing on that one. we do have a couple of ipos. nant health, shares at 14, that's right in the mid range. we'll be talking to the ceo of that in just a little while. david, back to you. >> that's right. also a share holder in tribune as we said earlier. >> quickly mention a stock. i was adamant when it was at 63, leslie wexner, l brands, he's turning around victoria secret. at 63 that was a real buy. but i just had to point that out

because leslie wexner, i thought he got too many slams when it went down. >> let's get to the bond pits at the cme in chicago. >> welcome to the twilight zone global financial show. draghi continues. he said the economic recovery continues to be dampened by subdude prospects by the number of sectors and sluggish implementation of structural reforms. gee, i wonder why they're sluggishly reforming their economies. maybe because the government in the form of the ecb, call it a quasi government, they don't even have a federal constitution. the overlay of the treaty of portugal is allowing them to basically be a private equity fund. they just keep buy, buy, buying. let's really be simple here.

would they be buying because investors are falling over each other to beat them to buy it? and we continue to see less and less volatility in the marketplace. not a lot of action considering that mario draghi ran out of sovereigns, now he's buying corporat corporates. how they pick these companies is anybody's guess. abe has debt of where but he can't raise the tax. if he tries to pay for it, it all starts to implode. consumers aren't behaving right. they keep buying saves, he keeps trying to talk them out of it, spend, spend, spend. look at the intra day of tens. it's having an effect on our market. stocks are moving down. of course they would. maybe there's going to be more qe here. what's interesting is we keep noming at this low 180s door. why? pretty simple. not only the effect of low are rates and private equity activity of big central banks but the february 1st charge

shows the february low of 166. the march 11th high of 198. the average is 182. if we start close beeg low this, my guess is we'll speed up on the buying. the volatility in foreign exchange isn't materializing like it used to. a little activity right around the press conference on the dollar, not that much. look at the two-week chart, look at the automatic scaling. it's basically a one full point range and we're playing around inside of itand if we look at the november 2nd of 2015 start of the you're your versus the dollar, this is really fascinating because it gives as you very nice glimpse of how the activity has panned out -- i'm sorry, that's the dollar index. reason it's interesting, for urs talking about normalization, we're well off the highs in the dollar index. even the effects market have

been immunized. back to you. >> thank you. >> shares of scripps network up 15%, that's just this year. that's not bad. we'll talk to its ceo. we'll be back right after this. ♪ ♪ (charge music) you wouldn't hire an organist without hearing them first. charge! so why would you invest without checking brokercheck? check your broker with brokercheck.

you can see there oracle's down rather sharply this morning. this due to a whistle blower lawsuit. a former employee said she was fired because she resisted to change some numbers. this from the lawsuit itself. plaintiff's superior instructed her to add millions in accruals with no foreseeable billing to support the numbers. again, this is simply a lawsuit from a former employee, but it has that stock down sharply.

we have stock trading with jim coming up. and we have carl live from the code conference in california. carl. >> a lot to come, david. cisco's chuck robbins, twitter's jack dorsey as we wrap up this final day of code con from palace verdes. and all i had to do was ask for their money and pretend i was investing it. their life savings is now my lifestyle. female announcer: don't let someone else live the life you're saving for. find out if you're dealing with a registered investment professional at investor.gov. it's a great first step toward protecting your money. before you invest, investor.gov. my m...about my toothpasteice. she eveand mouthwash.ice... but she's a dentist so...i kind of have to listen. she said "jen, go pro with crest pro-health advanced."

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comcast business. built for business. and it's time for stock trading with jim. >> i love this kind of pass. now they're saying occidental. they're using the decline to buy. what they're saying is listen, oil has moved up, it's not going to go all the way down, time to get a little more exposure to oil. just a good analysis all the way around. just i -- it's good all the way around. >> solid research. >> up 14%, they had a buy on it. it's a good call. >> what do we have on tonight? >> nuvasive. this is a baby boomer stock. i think they have the best back

substitute for back pain. it's a great baby boom area. greg lucier sold light technologies to thermo. i think that nuvasive is a natural takeover target. they're growing the company. and bill walton is the spokesman. >> interesting. >> we'll see you back here tomorrow, right? >> of course. are you kidding me? i'm here saturday. >> you're going to be back on that cracker barrel call. >> coming up, we'll talk all things media with scripps ceo and also oscar munoz. we'll be back with more "squawk on the street" right after this. why are you deleting these photos?

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on the street" right after this. good morning and welcome back to "squawk on the street." i'm simon hobbs with david faber. as far as the markets are concerned, let's have a look at where we are on stock market and indeed oil. private sector hiring rising, the adp figures that the market

remain buoyant. energy stocks leading us lower. >> and our road map starts right there. opec fails to resolve a consensus on a ceiling. >> and it's the biggest cash infusion from a single investor. uber getting a $3.5 billion investment from saudi arabia's public investment fund. we'll talk to competitive grab on how it's competing with the ride share and giant. >> and another company going public today. nant health will debut but the ceo just took a large stake in tribune. we'll speak with him later on this hour. >> let's start with oil falling in trade already as opec fails to agree on a production ceiling. opec leaders meeting in vienna. oils coming off a four-month winning streak, as you'll be

aware, its first since 2011. for more on the second half of the year and where opec goes from here, we're joined by michael cohen, head of research at barclays and joining us is the special envoy for international energy affairs at the u.s. state department. amos, did you have any doubt here that the iranians and the saudis would do a deal? >> i don't think we were surprise surprised, anybody should have been surprised about the results about the meeting in vienna or in doha last month. the fundamentals of the market are driving the price and there's no real need for an intervention at a governmental level. we understand why some are seeking a more interventionist

approach. but i think anybody who thought that a country like iran after years of sanctions would come out of those sanctions and immediately gree to some kind of production freeze or ceiling was not reading the situation correctly. i don't think this will have a great impact on the market one way or the other. >> where are we with regard to the saudis? maybe an override from riyadh and they lost their energy minister. they have a new oil minister who spoke today about stabilizing the market, the need to marshall the countries together. what does that mean in practice from saudi arabia's perspective? >> they're clearly going through a generational shift. from their perspective, they have a whole host of new challenges that they have to balance. there's the reform agenda of the deputy crown prince and the royal family and how does that

align with saudi aramco. in the past they had a conciliatory approach to opec. but in this state of play they have their own privates and their own economic reform they have to pursue. i think it's more important to focus on the fact that i think that from their perspective, opec as an organization is not as relevant. >> so clearly iran would like to return to the presanction outlet levels that it had. is there scope that tehran was calling for for some sort of deal at the national level that allows them to expand but brings overall production levels down? >> i think at this point it's unlikely that iran is going to agree to anything, any kind of limits on its production, as

amos said, while it is still seeking to achieve that same levels output. every member has to do at that point what is in its own best interest and that is maximizing its output and filling out the big gaps being opened up by opec and non-opec countries. >> amos, we learned earlier that iran was potentially going to hit that production output level by the end of this month, by the end of june. i'm wondering how that changes the make-up of opec, how that changes the approach to decision making, if in fact it does reach that ceiling that quickly. >> well, i think there's two points to be made there about iran. i think first the iranians have increased their production levels and their exports by 4 or 500,000 barrels per day.

we expected them to reach as aggressive a number as soon as possible. i think they're going to have trouble sustaining that or going beyond what they've been able to do without more significant investment they need to achieve in their own sector. but i think there's a broader point here and that this is not really about opec anymore. we have two classes of countries as far as members of opec, though who have significant funds that can weather the storm or can play the whatever policy is required for their domestic economy. on the other hand, we have countries who unfortunately don't have a -- the kind of reserves that allow them to weather the storm as easily. and that's why you see the nervousness in countries such as venezuela and other places that really have made poor decisions in the past and have had a rough time adjusting to the current state of affairs. while other countries can both assess the geo politics as well as the production needs that

they would like to achieve. so you have that dichotomy here where opec really is every man for himself or every country for itself. >> michael, there was a fear that the saudis could at some point massively increase production, some would argue in a sense to punish some of their rivals in this free for all, which seems to be what you're both saying. the fact that the new oil minister today for saudi has talked about a very gentle approach moving forward, does that soothe those concerns? does that change whatever your outlook is for the rest of the year? >> no, it doesn't really change our outlook. it's in line with it. i think what we have to look at is to try to understand how much more capacity the saudis are going to be adding in the medium term and what minister afala said is that they're going to be adding some capacity but it's a no real net change. so they're basically going to keep that sustainable -- maximum sustainable capacity level the

same but still adding a couple new projects, both at the shiba field and corace and later at the medium term. it's trying to stunned is it a short-term or long-term challenge. in the short term there's going to to be fluctuations and we'll see prices go much higher and much lower because no one can expect how they will react to higher or lower prices. they're in for a rude awakening because prices can fluctuate and opec has taken their hands off the wheel and said the market will determine the price. >> we appreciate both of your analyses. michael cohen joining us and amos hochstein. >> carl quintanilla, another big

day with big names at the code conference. >> you got that right. with elon musk, you never know what you're going to get. etalk he talked about why it's so hard to reuse a rocket booster and why he thought we'd send people to mars in about nine years, said apple probably would make a car in his view and talked about google. >> showing the potential of autonomous transport but they're not a car company. so they would potentially, you know, license their technology to other car companies and i think they announced something with p.i. and so i would say google is a competitor.

as we said earlier, it was theoretical or not so theoretical on his vision. the efficiency of using a rocket more than once and this idea of sending cargo to mars, how many times we can do that in the next few years and eventually whether people can actually go to. take a listen to that. >> we're going to send a mission to mars with every mars opportunity from 2018 onwards. they occur approximately every 26 months. so we're establishing cargo flights to mars that people can count on for cargo and the earth mars rendezvous is every 26 months. there was one in 2018, there will be another in 2020. if things go according to plan, we should be able to launch people probably in 2024 with arrival in 2025.

>> fascinating stuff. the room just trying to keep up with some of the terms he was throwing around, guys. as we said, between the tesla target discussions, discussions about apple and google in space, it was a wide ranging discussion. we have a lot more still to come today, this final day of code con. we'll hear from cisco's chuck robbins and we'll talk to walt and kara as well about what this conference was about and also anthony tan. we'll try to distill what the big themes were in these incredible few days. >> a lot more to come on "squawk on the street." scripps network reporting its strongest growth in five years and we'll sit down with ken lowe, the ceo up next. plus raising 3.5 billion from

saudi arabia's public investment fund. we'll be joined by uber rival grab ceo anthony tan. "squawk on the street" will be right back. man 1: i came as fast as i could. what's up?

man 2: this isn't public yet. man 1: what isn't? man 2: we've been attacked. man 1: the network? man 2: shhhh. man 1: when did this happen? man 2: over the last six months. man 1: how did we miss it? man 2: we caught it, just not in time. man 1: who? how? man 2: not sure, probably off-shore, foreign, pros. man 1: what did they get? man 2: what didn't they get. man 1: i need to call mike... man 2: don't use your phone. it's not just security, it's defense. bae systems. . >> scripps network interactive, whose networks hgtv, the food

channel, travel network recently reported its biggest growth in five years. here to break it down, ken lowe, scripps's ceo. nice to have you. sorry we're not in person. one of the questions you get many times is the advent of these skinny bundles. the question is do you have confidence that hgtv and food network and other networks will be a part of these new over-the-top streaming offerings that are beginning to proliferate? >> good morning. it's good to be with you as well, i wish we were in person. the answer is absolutely yet. our networks i think are must have. they resonate so well in the home, food and travel categories. skinny bundles are just another version of tiering, if you will. we think long terp and thus far we've been included in every, quote unquote, skinny bundle out

there. we think our networks are going to survive just fine. >> i have yet to meet a ceo who has not told me the same thing you just told me. why do you think this is the case? >> it comes down to these are brands that have stood the test of time. and they target upscale women and i think for the past eight years we've been the number one group of networks that reach upscale women. so it's a high-quality audience. advertisers really like the fact that our viewers do what they view, they tend to buy a lot of products and we're family friendly. that means a lot to our distribution partners as well. >> how do you see this world evolving, ken? you and i have had this discussion in the past. cable subscriptions are falling, slowly no doubt, but falling and you do have more and more options out there. how do you see it evolving over the next few years?

>> well, for us, david, i think the evolution is very positive because we have prepared ourselves for this future. we own 95% of our content. we think in a multi-platform world each day we touch 8.5 million consumers in one form or another with social nemedia, wi information. it's constantly a two-way street so as these platforms and other opportunities come along, we think we're prepared for our content to be anywhere, any time the consumers want it. >> mr. lowe, i just wonder the extent to which we might have overplayed the argument of cord cutting. because what's surprising now is, for example, our parent company, comcast, coming through with quite strong subscriber growth. i wonder if we missed the argument that maybe the cable providers have better technology and better customer service to the extent you can nip the

problems in the bud perhaps earlier than we previously assume. do you think the position is changing? >> i think it's a great point. i think there was an overreaction eight or nine months ago, there was a lot of hammering into cord cutting about technology, about sub losses and here we are now after the first quarter with a great round of results not just from content providers but from our distribution partners. so there was some overreaction. having said that, some of this change and some of this pressure has been very good. your parent company, comcast, for example, the x 1, the xfinity box is a magnificent piece of technology. i know, i have it in my own home. so consumers are finding that technology is actually beginning to catch up with a lot of the televisions and the boxes and devices that they're using and the content is there through things like tv everywhere. so it was a bit of an overreaction but as we saw, as i said in the first quarter in the results, this is a strong

industry with great dynamics. >> ken, this is kayla tausche. i remember a lot of hand wringing a few years ago about the future scripps networks, once the scripps trust ended. your stock is just about 1% from the level that it reached back in 2012 on that acquisition talk. i wonder if the current environment has made you think you can go it alone or if that would eventually be the route you would take? >> kayla, as you heard me say and, david, we talked about this many times. what we focus on is being the very best company we can for consumers we serve each and every day and ultimately that will add value for our shareholder base, be it the scripps family, who is very active and very passionate but also the public shareholder base. so long term great story telling, a great consumer connection and great content in the home, food and travel

categories. i think it bodes well for our shareholders. >> and it's come through lately in the ratings and the advertising. let's end on that, ken. what are you seeing in the advertising market right now? a lot of your peers is talked about a fairly robust up front. do you think that will continue as well in the scatter market? >> david, first quarter results, all six of our networks were up in ratings. we're showing record ratings of despite all the head winds, we're having great success from an advertising standpoint. this white hot market we've been experiencing especially in scatter we don't see slowing down any time. we're just getting in to upfront negotiations and i was told this morning we have very bullish expectations. so it should be a good advertising market for the remainder of this year. >> all right. we'll be checking in i'm sure perhaps before the end of the year but always appreciate it, ken. thank you for joining us. >> nice to be with you. >> ken lowe, ceo of scripps

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transportation and the growth of ride sharing, joining us here, the ceo of grab, a ride sharing app that has over a $1 billion valuation. it's great to see you. how much has changed in ride sharing since this conference last year, even if the past few weeks? what does it look like and what are the big things that are changing? >> it's just superdynamic in this industry. with all investments coming in globally, it's a real endorsement that ride hailing is going mainstream. in the past people used to think, i think last year people were thinking it's a novelty idea, it's nice to have. now the world has come to a point where all the oems and ouou automakers are seeing it's mainstream. >> and a lot of people are

seeing it's really a different game. one of the big things you're doing are motor cycles. >> yup. >> so talk about why that's important as a form of transportation. here people would think it's absolutely nuts to jump on the back of a stranger's motorcycle get ready to go. >> well, hugging is completely opti optional. on a call booking service platform, we have taxis, so cars or motor bikes. so motor bike taxis is basically you book it in the same way. within 3 to 5 minutes you have the largest motor bike taxi system across the region come to you. that's it. that's how it works. and the whole idea is basically to just navigate the local problem. so give you a specific example, jakarta, for example, the average commute time, two to three hours a day every day. can you imagine that?

and now with a motor bike, 30 minutes. so it really gives you back two and a half hours that you used to spend. >> because the bikes can go places where cars can't go. >> exactly, offbeat tracks, through housing estates, navigate through crazy congestion. >> and they're creating maps in real time the best route to a place because it changes day to day. it's not like there are traffic lights and traffic flows like we have here. >> that's exactly right. today is a one-way street, tomorrow is a four-way street. how do you navigate that? and certain roads are not tracked on google maps. these motor bikes go off the roads and really go off the side roads. the whole idea is we are the only one who is are gathering both navigation and routing data for cars and that's different for bikes, building two different systems. >> anybody who has traveled in that part of the country knows exactly what you mean. the alliance you built, do you think of it as four against one, meaning you guys against uber?

and does apple's investment in dd mean they could insist in you guys one day? >> i think the partnership would be really, really amazing. what the partnership is, we have dd, as you mentioned, over 90% market share. we have ola, who has over 70% market share, you have left, who is doubling market share in a key market and growing very, very fast. for us we have over 90% market share in certain of our main businesses, in businesses that we started, that's all very clear that we are dominating in businesses that we started a bit later, we've overtaken our competitor. so how we think about it is partnership of strength but it's not only about strength but also about knowledge. so, for example, take hitch, a service -- very local service in china, social car pooling. we've learned and we've deployed that as well. again, very localized. >> and the piece i want to be sure to get to is how payments

work because they're not credit cards across most of where you're operating. so the drivers actually go to a convenience store, buy a certain number of rides to get on your system and then keep the cash that people give them. how is that going to play out for e-commerce in general? is that a payment system that's going to work for more than just basic rides? >> you're exactly right. after the three services we built, we built grab pay. that was deployed last year. grab pay basically allows southeast asians who are predominantly 90% cash so all transactions 95% are cash. it represents two great options. it presents an option that there's absolutely no ali pay, we pay type of service. because we are the largest platform in southeast asia, it enables us to deploy the service to also create more engagement for existing services. so as you said, cash in, it's

all prepaid, we have credit card, we have debit card and local integrations into local banks. that gives you that in and out experience even without a credit card. >> we have to take the show on the road, i think that's the bottom line. >> get on a bike and do it. >> there you go. >> we look forward to talking to you again. >> thank you, guys. >> anthony tan with grab. >> and the other big story is the inability with opec to strike a deal in vienna. brian sullivan joins us now from the opec meeting. you've actually gained an interview with the saudi energy minister. >> it was actually our colleague hadley gamble when they came outside, it's kind of like the oscars of oil i guess in a way, simon, where there's literally a red carpet, people come out and you throw questions out. it was basically, as you said,

no deal. for the second time the opec nations were unable to come to any agreement about output caps or limits or production quotas. of course they're all talking about now how it's better because the price of oil has come up in the last couple of months and is up about 80% off its lows so it it makes it a little builtiit easier to do th. after the failed summit in doha, he had been coming to these meetings for 25 years, he seemed like an old pro because as he came out and told cnbc, he played politics well and talked about how happy everyone was. listen. >> we are extremely happy. i think the market is in good shape. trends are good in supply.

the spirit of the meeting have cooperative, collaborative and all of the ministers see basically the same fundamental ps. >> we hear a lot of markets are fine, everything is okay, the meeting was happy. we hear a lot of that talk about the reality is many countries were pushing for a cap, they did not get one. iran is going to produce maybe as much as 4 million barrels of oil a day. we got an interview with the oil minister of iran which we are, as we say in our business, cutting and we'll get it on the air very soon. >> about the unanimous vote, it's much of the same. we want to go back to headquarters and sue herrera with a news update. >> what's happening at this hour. the iraqi coalition releasing video showing iraqi forces advancing towards isis positions in fallujah. they say that advance yesterday was stalled because of concerns

over isis fighters. germany's parliament voting in favor of a motion designating the world war i killings of armenians as genocide. soccer star lionel messi testifying on tax fraud charges. he and his father are accused of defrauding spain of $4 million, denying any knowledge of the issue saying he trusted his father a father. and katy visits vietnam, spending time with the children and their families. now to jackie deangelis with crude oil inventories and, ka a

kayla, back to you as well. >> coming upon "squawk on the street," it's finally here, after a planned health care ipo, up at the nasdaq, nanthealth and we'll be joined by its ceo patrick soon-shiong. "ow..." "are you okay?" "yeah, i just got charged for my credit monitoring.

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at a time that works for you. even late at night, or on the weekend, if that's what you need. because you have enough to worry about. i did not see that coming. don't deal with disruptions. get better internet installed on your schedule. comcast business. built for business. we're awaiting the opening of shares of nanthealth. the parent company pricing its ipo at $14 a share. major investors include scripps health care solutions. let's bring in nanthealth founder and ceo dr. patrick soon-shiong, he's also part investors of the lakers. good to have you. >> thanks for having me. >> this ipo has been in the works for a long time.

it was delayed about six months ago. why do you think now is the right time in the market for your company to go public? >> well, you know, we delayed it because we were integrating a huge organization called navernet. now that we integrated the organization and we have this test, which is an important test that will transform how we look at patients with cancer, it was important to release the organization and make people aware of what we're doing. >> your company does have revenue currently which is different than some other health care companies we've seen come public, but you're running a the a pretty steep loss. i'm wondering what you've told investors about a path to profitability and when you do expect your company to be profitable. >> we built the organization on a infrastructure that doesn't exist so we made huge investments. we we needed to build an infrastructure to allow the doctor and payor to have direct

interaction. the huge inflexion point for this company now is literally at this meeting, which is the largest cancer meeting here in chicago. we're launching this diagnostic test that is clear cap certified and which is being covered by insurance to basically inform now doctors and patients about information about the cancer that was never available before. and i think this test is really an inflexion point that will inform not only how we mike diagnoses at a molecular level but how we share the information across a platform and information scale. the transaction we completed was very significant because it allowed the largest national collaboration of health care between pay and provider and information to be transmitted. and that's why this is now a time where we think we will be able to grow the company very

significantly. >> it's also a time, though, doctor with the situation and the regulatory questions around sarinos and the inaccuracy of its own diagnostic test was thought to have cast a pall offer the diagnostic industry at pause. you make dna-based cancer tests. and i'm wondering how you determine the accuracy of those tests and how you are working with regulators to that end. >> well, i think it's very, very different. i don't think it's even on the same comparison. what we're doing actually is actually taking genomics and this is the first leap frog into the road of proteomics. these tests have not only been validated, it won the method of the year in 2012. so one of the most important aspects of it was to get what we

call clear cap certification. so the test has been clear cap certified and these are some of the strongest bodies. and then not only allowed that, it's allowed coverage now by blue cross and independence blue cross is covering this test. >> dr. patrick, a lot of people will be transfixed by the 2020 ambition that you can design through looking at what a body really is, a potential cure for cancer and almost it would appear immunize against it. if i believe, and i desperately do want to believe that you will achieve what you hope to achieve, is this the investment vehicle through which that will take place? is this the future company that will build and build on the success of what you're trying to do, or is it one of many vehicles? how does it lay in the landscape, if you like, from an investing standpoint? >> right.

well, it's an excellent question and you see this is really a strategy that we've laid out for the last decade. and the strategy is as follows: one, the first thing is to educate the nation about this things called the natural killer cell that you and i have in our body that protects cancer and we launched a company called nan quest. the second arm of the strategy was inform the nation it's now possible to interrogate the human tumor and find the sequence, the proteins, that are very specific just to that tumor. the third arm, which is coming, is to then insert that sequence into a vaccine and inject the vaccine like a flu shot and reeducate your human body now to go and kill this cancer. the combination of the natural killer cell, the combination of this gps cancer test, which is a test that not only identifies which chemotherapy you should be on but then identifies what sequence we can add into the vaccine and then the third tripod of this organization is

the vaccine company. so they all work together and then this information is so complex that we need actually to share it in a transformative way using the internet and using cloud computing and artificial intelligence. that's what nanthealth does in combination does in combination with dis bootributing the gps t. >> if there are properties rightly to be earned here, will this vehicle capture those or should it be shifted between the other elements of what you're talking about? >> no, this vehicle is designed to capture the profits as it relates to the interaction between the payor and the provider. meaning the doctor, the oncologist that sees the patient, that orders the test, this company will receive the profits of the test. the doctor that interacts with the payor and requires electronic medical record and data storage and health will receive this.

the natural killer cell company has a very clear arm, it has to manufacture natural killer cells. the vaccine company has a very clear arm in that it has to manufacture vaccines. so this company nanthealth sits at the crux and is basically the conductor of all these events that integrates the knowledge, this very complex knowledge with the delivery with the payor. so there's no company i know of, and it's taken us ten years, to integrate the knowledge arm of the science, the delivery arm of the doctor with the payor arm of the insurance company. and so it sits at the crux and it really conducts these events for the delivery of our products or any other pharmaceutical's products. celgene is also a major investor in nanthealth, we're working

with celgene and any other company working in this area. >> i wanted to get your response to a lault just filed in delaware by a shareholder of tribune name being you as a defendant, in addition to the board of directors. the basics of the lawsuit are that the board agreed to a sale of 13% at $15 a share in order to entrench itself and in breach of its duty of loyalty to the company. they say simply that sale was unfair. i'd love to get a response. >> well, the first thing, this is the first i've heard of it. so thank you. i've been in the board, i've been sued before i even joined the board. all i know is that we were offered the opportunity to participate and buy the shares at a price that was a very good price to the company, and i accepted that opportunity. so i know very little. in fact, this is the first i've heard of the lawsuit. you have first informed me of that. so obviously there's very little

i can comment about it. >> understood. >> doctor, regarding tribune, though, you are now very heavily involved in that company as the second largest investors. meanwhile you are the ceo and founder of a company that will in moments be public and you don't have a contract with nanthealth. what's the future of your employment with nanthealth? do you see another ceo coming in? what should shareholders expect? >> well, no, nanthealth is a combination of ten years of my life's work in order to actually create a system that can educate every patient, every doctor about new knowledge and transforming health care. so you're right, i probably don't have a contract. i probably will have to go to the board and get a contract, but i'm committed as a ceo to make this company one of the most important companies in transforming health care. >> well, it certainly is a milestone today for the company. we will await the opening of those shares. doctor, we appreciate you

joining us on "squawk on the street." >> thank you for having me. >> coming up on the program, flying high. united airlines launching nonstop flights between the united states and singapore again. remember those? the longest scheduled flight operated now by a u.s. carrier. we will speak to united's ceo next on cnbc.

there's a controversy rippling through the bull market according to goldman sachs. find out what it could mean on "trading nation." more "squawk on the street" coming up. need to hire fast?

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joining us our very own phil lebeau, with the united ceo who joins us on a first cnbc interview. >> thank you, simon. it's an important day as united unveils it's new polaris seats and amenities. let's talk to ceo oscar munoz he. what went into the thought process of updating the business flights? >> we went in to reinvent the business class experience, nothing short of that would be anything that we would accept. we did lots of research with customers, employees and a whole lot of folks around that, in essence developed the product based upon the needs of customers and then went back to reengineer everything we had thought about and made sleep a priority. >> let's talk about that. we have a lot of viewers, business travelers internationally and i know people focus on the food and the

friendliness of the staff but at the end of the day sleep is the priority, right? >> absolutely. is sin credibly in what they wanted. the amenity kit is going to the offer thing likes the ergonomically designed eye shades, and noise canceling headphones and the option to enjoy the process or to sleep comfortably, taand the option wh the customer service that we want to provide is the change. >> and how far is this going to go to help united to capture the competitive business seker to. and we will show you that united is at the bottom relative to the competitor, and how far to go to catch up? >> the level of improvement is great across the industry, and we improve with everybody, but we have lagging effect, and the products like this that clearly

differentiate and move us ahead, anda and b and the customer service, and the individual and the human connection ta we are providing is going to be a difference report in addition to the wonderful products, the human quality is something that we are stretching for, and not only to do the flying but to see the employees around the world, intraflight connectivity is a problem when you are trying to log in, and people say, look, i took a three-hour flight to california and i can't log on. >> right. it is a problem that we have been fixing for some time, and we have a platform issue that we merged with the companies as you know, and the technical issues are will be resolved and we will announce a portal to be common across the aircraft, so you will be able to log in as a normal person, and remember you when you log n and so we are trying to fix it. and it is frustrating and i do not unfortunately get a lot of downtime, because i am always talking to someone. >> and talk about your corporate

travel in the summer? >> the gdp has dropped dramatically at 3% to this year, and it is something to be watching and keeping a close eye on, and the corporate travel and the oil is down, and the banking is stable, but it is a little bit of the softness, but thank you very much. >> oscar munoz, today on a big p day, and i want to try out these seats the next time the on the international flight. kayla, back the you. >> thank you is much, phil lebeau in new york city. >> we want to take you to the opening of the shares of nanthealth selling the to raise up to $90 million and stock is up currently trading at 16.77 to push the company's market value close to $2 billion. it is 1.5 billion at the ipo and the company is selling 5.5% of the company, and of course, dr. soon shiong will own 58% of the

company, and so it is a good sign and data point forty, po market. we will keep an eye on biotech in general, because we know that the ipo market has not been strong as of late. 2016 getting off to the rather sluggish start, but we will keep our eye on shares of nanthealth and track it throughout, but wasn't to go to carl and the code conference out west. >> yes, we are at rancho palos verdes, california, and we want to bring in jon fortt who had interesting comments from chuck robins, cisco's ceo. >> yes, and he is as well as g the -- ginni rometty, and talking about security and the b cloud business and this is what he had the to say.

>> in relative to the way that things are hyperdistribute and we are connect things that are not connected before so the whole premise of the data enterprise is disappearing, and the infrastructure is the network. so the importance of the network in regards to security is only going up. it is one that lensd itself to subscriptions and software is important move in our business, but as we are looking to the future, what customers want is a that they want to really dynamically defend against threat threats. we have one of the largest threat information databases in the world. we see more threats daily than anyone. we actually see 20 billion threats in the customer base on a daily basis, and what they are looking for is how to take the information and give me the ability to rapidly defend not only my enterprise, but i want you to cisco, defend the vehicle

that i have connect and defend the manufacturing facility that i have connected, and so it a comprehensive threat-based dynamic environment, and that is what we are focused on. >> and a big change nor a company that used to mainly sell stuff that showed up to the enterprise and the cardboard enterprises and shifting to software and also the future. what is the big trend in five years that people are not i pawing enough attention to, and this is what he said. >> well, i think that there is a lack of belief about the number of things and devices that are going to be connect and the value that our customers and the country leaders around the world are going to be seeing from the connections, and so whether it is $25 billion or $50 billion it is is fwogoing to be happening h more rapidly than anybody believes and the value from the connections is going to be bigger than anybody believes. >> the rapid transition from el selling stuff in boxes to the

cloud. >> and there is a place where many believe it is happening in the enterprises. >> and he has won over the believers with some acquisitions as of late. >> thank you, jon fortt. coming up, we have john mossberg and kara swisher, and all of the highlights and interest from the conference coming up. ama and em. my cognitive apis can help any business better connect with its audience. you should try writing a book. find a remote hotel. bring the family. i do not think that is a good idea. bring the family. ♪ ♪ (singing) you wouldn't haul a load without checking your clearance.

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. >> take a look at the shares of nanthealth priced at $14 a share after the market closed but currently up 31 31% opening up minutes ago with the company raising close to $1 million in the initial public offering and now close to worth of $2 billion. and trading under the ticker nh on the nasdaq and there is a look at the ticker of the few dozen ipos in 2016, and certainly a good data point therein. now, let's head back to carl quintanilla at the code conference. >> thank you very much. good morning. it is 8le:00 a.m. here in the code conference in rancho palos

v verde, and 11:00 a.m. on squawk street, and this is "squawk alley." ♪ ♪ i don't know what it is ♪ but i like it a lot welcome back to "squawk on the street" i'm jackie deangelis, the department of energy out with the report, and delayed because of the memorial day holiday this week. we got a drawdown of the 3.4 million barrels, and it is a smaller than expected so the crude prices are negative, but they are trading a little bit higher since the news came out. we were