good morning. it is 8:00 a.m. at uber head quarters in san francisco and 11:00 a.m. at our headquarters and it is live "squawk alley." ♪ >> good thursday morning, and welcome to "squawk alley" and

kayla tausche is live back at post nine with jon fortt, and also joining us is a contributor from "vanity fair" nick billiton. and we are looking at that meeting at the 2 white house with our own john harwood. >> we are waiting for bernie sanders to arrive at the white house any second, and play out the ritual any time that a party has a decisive party campaign which is to bring the party together which is crucial to win thet presidential elections in the polarized system, and begin the pivot to the general election, and hillary clinton has of course won the democratic no, ma'am nas, and beat bernie sanders sound ly in california, and has a lead in the pledge delegate, and the popular votes and superdelegates as well, but it is a difficult process for somebody like bernie sanders who has enjoyed the cheers of the crowd for months now to back out

of the race now, and turn it over to the rival. hillary clinton managed to do it eight years ago successfully with president obama, and he has been trying to shepherd the process all along with the assessment of both campaigns, carl, and president obama has been playing this adroitly, and that is to say that he and vice president biden have not put public pressure on bernie sanders to get out of the race, and they did not make endorsements, but it came out the way that president obama wanted, because he wanted hillary clinton to be elected to preserve his legacy, and now he is going to be talking sense for bernie sanders and say it is in the best interest of the values and with what they share, because we don't know if bernie sanders is going to be coming out to say that he is getting out of the race, because it takes time for somebody to do

that and we don't know if president obama is coming tout make that endorsement today or later to dday, but that is wher it is going to end up, and the question is how fast we get there, and the meeting is going to be a part in the journey, guys. >> interesting to watch those wheels turn as we have a pretty better idea of where it is all headed, john. as you said the timing is in question, but we will come back to you later on, our john harwood. if a similar vein, uber worked with a former cia officer in the investigation of a lawsuit opponent, and eamon javers broke that story and joins us. >> yes, we have learned that uber worked with a former cia official into the litigation of an opponent, and uber was facing a lawsuit from the litigation opponent, and hired ergo to conduct investigations related to the case, and one of the people involved in the

investigations was a former cia officer todd egeland, and acco d accord ing to the bio, he served as the e chief cyber threat officer, and chief of counter intelligences a sszmentes. what we know about this from the court filings made this week in the ongoing litigation is that a judge has ordered uber to turn over documents related to the investigation, because of allegations that one of the investigators at the private investigative firm may have lied to people as he was conducting his investigation. now, uber and ergo did not respond to the requests for comments. but both said in court filings that uber did not ask anybody to represent himself in any off this, and ergo chalked it up to

the actions of a misguided employee. back the to you. >> interesting, ayman javers - jave javers. and so we are able to read into this, nick, what we foe about uber's commitment to their own business practices. >> i am just -- it is, you know, one thing after another with uber. it is going back to the beginning of the company in 2009 when they wrote a blog post talk about how they knew where the prostitutes and the drug dealers were based on the data of the site, and all of the research pricing coming after their competitors and one thing after another, and now to find another thing that the cia agent has been working for them. and in the 1980s, france came

after texas instruments for trying to steal secrets and we have seen it with china and google, but it is often countries coming after other countries and rare to see things like this with litigators involve involved. >> nick, this reminds me of sarah lacey, a journalist -- >> yes. >> and apparently uber, one of the executives said that they could look into sarah lacey and they backed off of that and said, that we didn't mean that, and of course, sarah has continued to bring it up. but here is the company apparently doing something similar, and does it say something about the ethics of the company, and should investors and users be concerned about this pattern just based on tha

that? >> yeah, look, travis is saying that he wants to wait as long as possible to go public, but they will have to go public and these types of scandals don't go over well in the public market. i think that, i have been covering the valley for a very long time, and the one thing that i really truly believe that the companies are a result of the dna of the founding of the company. so, you know, twitter was chaotic company in the beginning, and it is still chaotic today. and facebook run by the guy who wants the be the emperor and still today the same. and uber was founded on the ideals of let's break a system, and you know, the taxi industry is broken and needs deregulated and all of these things, and fantastic and wonderful, but now they are continuing the do it with threatening to go after the journalists and this thing with ergo today, and more and more instances like this in the future i am sure. >> and nick, when does the op-o

research go from the company trying to be competitive to put up a good fight to something more sinister? >> well, it is interesting if you look at the cases of the corporate espionage or i spying, it is difficult to discern what is legal and illegal, and is going into someone's dumpster to try to find the papers that they have thrown out legal? is acquiring a patent to then go to look at the people involved in it, and the process that they u used, is that legal? nobody has the answers on the case-by-case basis, but i think that, you know, silicon valley likes to push it to the limit, and companies like uber are perfect examples of it, and i hope for the sake of the company that they have figured out how to come up with a line that they will not cross. so far, i don't know where that line is. >> yeah, it is hard to know where the line is, when they keep moving the little sucker as someone famous once said. and nick, a good piece in "vanity fair" and the headline

is "peter theil and silicon valley" and it is a laugh out loud story about how you went to dinner at one of theil's salon, and then takes a turn of what the young entrepreneurs are capable of as they get older. explain it. >> well,ly save people to the read the article to be on the "vanity fair" website this afternoon about the dinner, because there was no dinner, but the thing that i discovered from the salon and have discovered from spending time with theil and others is that they want to do things the way they want to do, and the rules do not apply. and one of the things they have been h thinking of the gawker versus hulk hogan and peter theil case, and at first i thought that gawker has done some things that are not copa stettic, and as you look at them, what peter theil did is way, way worse, because he is trying to get around the first

amendment. he does not believe that it is an institution, gawker, the institution with a right to free speech, and he wants to shut it down. and the thing that is truly scary about it, is that he is not talking about the repercussions in the future, and how it enables billionaires and people like donald trump to go after the journalists and the entities that they don't like because they have said something that they don't like, and this is the beginning off what we will see in the future. >> and nick say, what is the problem with it? he is using the legal system, and not extra legal methods trying to draw a line between the uer investigator, and this, is the problem deception, and not coming straight out, to make the motives clear, and snake in the shadow s ts the do it? >> well, no, deception and doing it in the shadows is weak. if you are going to do that, stand up for it, and don't hide behind the lawyers and peter

theil should have stood up, but whatever, and what is really disturbing is that these people don't, and they literally don't believe that the rules apply. if somebody wrote something negative about you, jon, would you go and hide? there are times when it works to our benefit, and there are times when it is not going to be for our benefit, and it will come back the bite us. >> well, it is the same mindset that made them successes to the large degree, nick, and it is a great read, and everybody should read it in "vanity fair." thank you, nick bilton for joining us. >> and david faber broke the news this morning -- >> we will get to viacom in a moment, but right now, yahoo!'s board is going to be meeting for

the second round of bidding to set up a final round to conclude the people close to the situation tell me in sometime mid july, but it is going along the lines of the way that people expected with the value of the core business of yahoo! as carl said. multiple bids at or near $5 billion, but not above $6 billion to make that clear, and they have comprised a variety of buyers including private equity firms and strategic buyers and one of of the strategic buyers in the lead position is verizon, but people close to the situation indicate that verizon's bid, a bid above 3.5 billion nonetheless was at the low end of the range of bids received by yahoo! at the time of the bids being received. and while there is conversation amongst the members of the team that is advising on those bids and the special committee to the

board that is looking at them about whether or not they would think of booting verizon out of the process, and it does seem the unlikely outcome, and interesting process for what does seem to be fairly competitive action as we head through a final round of the bidding, and it is difficult to compare the apples to apples, and the pen portfolio of yahoo! and the real estate, and some are inclusive when you are talking about the $5 billion bid, and there are some bids that are not including them or include most of the portfolios, and we have to wait to see if it all checks out, and that $5 billion close to perhaps the $6 billion is the hope of some people heading into the process, and they are at least delivering on that, jon, but of course, the question is what do you get in the final bid? in some cases, people can move down or in the case of verizon move up to get the signals they need to. >> and the question is also that this is a company that people

had criticized at zero value of the core business because all of the value was in the asian assets, and does this round of bidding change the kconversatio about yahoo! itself? >> i don't think so, because it is a diminished level of ebida, and if you are buying, there are multiples that you can see coming through, and the equi equity-based comp is an issue, and thought to be an issue for the p.e. firms as well as they are trying to figure out what are our costs the s going to b have taken on more employees. and the back end, the alibaba stake applied to the stake versus alibaba in the public market is the key since there is a potential for krcreating or n having value there. thank you, david. >> we will check the markets

down all week long, and down, and restoration hardware is down 20% after the earnings in the same store sales missed estimates and the company is cutting the full year outlook. we will go live to the new disney park in shanghai and talk to the developer. and monday, we were joined by the founder of verge who joined us for some highlights, and also, we will look at a new ceo of jaunt when "squawk alley" continues.

david fab er is with us on post nine with news on viacom, and now it is time to talk viacom. >> yes, thank you, carl. and philippe the chairman of viecome speaking public ly for the first time since the controlli controlling owner redstone and his daughter. and this morning mr. dauman did not speak about the feud, itself, but he did talk in detail about the sale of a 49% stake in the studio. he said it would involve an investor coming in, and tax efficient, and the at a tributes of any party we are talking to is such that it will create more value operationally than if they

were alone within viacom, and it would unlock what is $10 or more per viacom share if we with can bring it to the conclusion, and the big key there is "if" and given the bylaws set by the controlling entity would are require a deal with the paramount which includes a deal with sumner redstone and his daughter. and sumner redstone saying that he does not anything occurring with paramount, and mr. dauman's comment s th comments this morning may be one way for him to at least communicate with sherry redstone, and sumner redstone, because it does not appear that there is any communication, whatsoever taking place with them, and saying, look at the value that we may bring to bear here, if you let us move ahead with the deal.

in the change of the bylawmusem they they would rule against it, but they would approve it, and it does raise questions of the potential buyers of the 49% stake that mr. dauman has given details about would continue in the negotiation, guys, when it is likely that it would be stopped by the board of directors, and so very interesting and some real details here, and certainly trying to explain the benefits to viecome shaacom shareholders question if they can get to the finish line given the changes of the bylaws and of course what may be coming in terms of the open warfare. >> and the plot thickens, david. >> yes. >> and now, our eunice yoon is

there in shanghai about the opening of disney in china. >> well, disney is running pretrials, and he says that they have attracted half a million visitor, and yiger says that he is feeling good what is coming up next, and how important the park is for disney's overall plans here. >> clearly, we will serve as a booster rocket for people's appreciation of disney, the knowledge that disney is in fact universal in appeal to people, and the appreciation, and the knowledge of the characterers and the stories. and immersive park experience the disney way is something that people will remember for the rest of their lives. that goes a long way not just in terms of word of mouth, but for people's passion for our brand, and everything that it stands for, and everything that bears its name. after the interview, iger took

me on a roller kocoaster ride called tron which is an entirely new ride for disney, and it is based on the movie, and you will go on the bikes and then speed around in the tunnels, and he said that it is important for disney to put state-of-the-art technology into this park. he did the same thing with "pirates of the caribbean" and classic ride with the technology makeover, and a lot of the new visual technology and the system to move the boats around, and what is interesting is how many so rides in the shanghai park are based on the new disney franchises, because if you have the remember that chinese people have not grown up with mickey and minnie in the kay same way that americans have have, and the characters they know are jack sparrow or elsa or darth vader and these characters are all in some of the new movies that have done very well here. bob iger said that he is ambitious, and optimistic about the movie plans here as well. we continue to grow our motion

picture business and so far, most of it has been exporting films that we make in other parts of the world into china delivering great growth, and china is now the number two movie market in the world, and we plan to make disney movies here, and we have started that process. with the strength of the disney brand and the knowledge of the disney characters as a growing retail business here, and in part because of the digital technology, but in part because of the growth of the market. >> disney's p.r. told me that they have been surprised so far with what has been popular. because one of the most popular places, jon, in the park is the turkey leg stand and people have been waiting on average for two hours to get their hands on one of the turkey leg, and posting the pictures of them all over the social media calling them chicken thighs instead of the turkey legs, because they are

not as familiar with the turkey. >> well, it goes to show, you na eunice what is going to be a hit. >> and coming up we will talk to charles moldow who is an early backer of some interesting things we will talk about. about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans, it helps pick up some of what medicare doesn't pay. and could save you in out-of-pocket medical costs.

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the federal trade commission is hostinging a for ing ing ii investment. cnbc is just releasing the disruptor 50 list is including five fintech companies, and to learn more about fintech and the marketplace lending market, and few know more than charles

moldow who is joining us from palo alto, and good morning to you, charles. >> good morning. >> we have heard for a long time that the banking industry was ripe for disruption, but how hard is it to actually take on wall street at traditional competencies that they have been good at for years? it is hard to disrupt any mature industry, and this is a little bit harder, because you have a regulatory overlay in the early stage companies have to become competent in or maybe that is not the case in others, but i would remind you that even when one of our early investments from years ago netflix, the incoumbents like blockbusters were thought to put it out of business, and then it was walmart, and the companies that with great products that the customers and do it cost effectively will always have a place in the market, whether that's in the movie business or the distribution or in fintech, and that is absolutely true. >> but netflix was sending dvds

to consumers and keeping someone's money safe and sound and growing the investment is an entirely different proposition. how does this industry get regulated by washington down the road if you think that is the case? >> yeah, i do think that there are a number of the regulatory bodies that have anxiety about the pace of innovation, and the biggest concerns are security, andsecondarily, they are looking for the white house, and others looking at the space, and it is something that you to subsect, and whether it is investment lending or wealth investment or remittance, and they have issues and concerns. i think that the startup community today is well aware of what those are, and people are actively working with work with washington and not against washington to try to figure out how the accommodate the regulators in the solutions they are building. >> some of of the issues and concerns, charles, as you know

well, they have centered around a company that the foundation has a large stake in lending club. is that a hiccup for a company or a seismic event to teach us more about marketplace lending? >> i think that certainly, it is a hiccup, because marketplace lending is a gross ly misused term. i coined the term about three years ago -- >> i believe that we lost charles muldow from foundation capital and when we get him back we will talk to him on fintech, and capital lending. so many issue, lending club who is an early investor, and lot of repercussions across the industry because of that, and we e will be interested to see if there is a noticeable effect of the business, and certainly, we are getting to see some of the newer businesses, and we will see how it pans out. back to you at the nyshnyse.

>> and over to you, simon over the european markets? >> well, the ideas are the blackrock is suggesting that people should trim some of their risks ahead of the brexit vote. meanwhile, as carl is pointing o out, you are continuing on day two of corporate buying from the ecb, and the corporate qe, and continuing to see the march down on the yield of the 10-year bond, and we moved beyond three basis points, and clearly, the market is going to take it to zero, and test it or not, and it is a bleak environment on the news flow wherever you are looking, and mario draghi is under huge pressure on the negative rates and the bond buying.

today in brussels he chose to hit back against the rest of europe, a against the politicians with a dismal view saying that there is lasting damage from low growth, and too much austerity and the politicians need to deal with flexibility in trade market, and greater concentration on the services, and education, but the down message is not helpful when it is the one player that is in the market to boost growth. if you are looking at the european stocks in the united states over to the last decade, you would see a 60% underperformance from european stocks in that time. today, morgan stanley came through with a dismal assessment again of what has gone wrong in europe during that period, and this is the worst ever relative performance and driven by a short fall in earnings and not necessarily based on the banks or the commodities, but the loss of high margins in the markets

from the international players which they will never recover, and the high effective tax rates in europe and the united states, and lower buyback a activity. a lot of people may be hoping that the push of the yields on the cost of capital, and everybody in the eurozone there would be higher buybacks but they say it will not happen, because the europeans are highly leveraged and they lack the head room to make further buybacks. guys, back to you >> simon, thank you very much. when we come back, apple's v.p. phil shchiller is going to the announce some change nos apple store. he talked to lauren goode from the verge who is going to join us in a little while. a reverse mortgage is insured by the federal government; you can get tax-free money from the equity in your home; you can use the money to pay off your current mortgage, if you have one; the remaining money can be used for anything;

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some tape here of the president and senator bernie sanders walking along the colonnade of the white house a few moments ago for the meeting between the two men. the president and senator are discussing sanders' future in light of hillary clinton becoming the presumptive democratic nominee, and any headlines from the meeting, and we are not expecting a ton, but as we get them, we will get them to you as soon as we can. and meanwhile, back at the headquarters with sue herera. >> this is what is happening at this hour. u.s.-backed rebel forces have closed a ul roads lead ing ing e syrian town. the rebels are hoping to stave

off civilian casualties. >> and a judge upheld uber pop. and in addition, a french court is fiping uber for using uber pop in france. and it slapped smaller fines on two of the executives, and the first such criminal case in europe. and a new wave of strikes affecting paris' garbage pickup with one day the go to the 2016 soccer matches. beginning today, the california smokers have to be at least 211 to buy tobacco products. last month, jerry brown signed legislation to raise the state's minimum from 18 to 21. c. california is the second state after hawaii to raise the leel age to 21. that is the news at this hour, and i will throw it back to you, jon downtown. >> thank you, sue. apple's conference will kick off

monday. looking at the next guest who spoke with phil shchiller the head of the apple event, and he talked about how they are ramping up the products, and lauren from verge, good to is have you. >> thank you, jon, and thank you for having me. >> nand is about the subscription revenue that apple will not take 30%, and they will have their cut shift down to 15%, and the last big shift in the app store is when apple moved to in app purchase to allow the people to play for free, and then buy goodies along the way, and spend more no e knee, but this is not clear to me how it would change consumer behavior, but maybe change the business model behavior on the company side. do you see it the same way? >> that is really great point, and in app purchases are a boon for certain app developers and

namely the game twopers according to a report that, you know, we saw from the app that r reported in our comments on verge.com. and so the revenues that are coming from the revenue in-game, and so they go to the game, and then they buy something within the game, and that is essentially how they are giving the developer, and apple their money, but what we are seeing here is the shift towards subscriptions so that other app developers who have not been able to make a business economically sustainable making apps can say, well, now i am going to be charging people on a recurring basis, and the big question is how that impacts the consumers. we don't know whether or not people will be looking at the phone to see a app that was free or a one-time paid download purchase, and say, oh, now i

have to pay $3 a month for this, and i am not sure how i like this, so that part is to still be seen. >> and are people going to be scammed by it, because you pay for it, and then you forget that it is a subscription, untill it goes up on the credit card, and you are to go in to cancel. is this user-friendly or maybe a headache for people who are used to payerring for certain apps on a one-time basis. >> well, keep in mind, it is certain types of apps tho offer this type of subscription service, and have it work. sor some app services, it would make sense, but others not. for those who are going to be experimenting for the app subscriptions, there are going to be options for make it consumer-friendly, according to apple's phil schiller. there will be notifications that pop up, would you like to renew the subscription, and if the consumer omts out, apple says it

is will be terminated so there r are no quote/unquote surprise charges burk there are detalils that are going to be rolled out between now and the fall. in some cases it is retroactive and in other cases it is going to be roll ed out. >> and does this mean that apple is moving to the larger bedroom so to speak, and how about the apple store as a driver of the overall growth? >> well, it is a great question. the way i look at this is that the iphone sales are slowing and so they are now emphasizing services, to get people to buy more into the service, and buy more software and that, and this ic is part of the larger effort to say, okay, people are not necessarily buying the new devices, and we want them to be buying into the cloud services, and to pay for more stuff in

apps. meanwhile in are re/code, there is a story of the app boon is over, and people are downloading fewer apps and not using as much as they used to, and so the app world is sort of flattening out right now on the user and the developer side. so a lot of efforts to say, hey, existing devices and apps and how do we bring more profit out of those. >> was it recode who had the story, and saying that the app era was over? >> it was. >> the ad boon is over. >> yes, important distinction. >> yeah. >> and i wonder if apple makes moves that far relations for prime and ebooks and things through the app store, but schiller does not seem to have gone that far. lauren, thank you for joining us. >> thanks, guys. coming up, tech names moving higher, and web busch with a coverage of the outperform

rating and linkedin outperform at ecb. and meanwhile, rick santelli, what are you watching today? >> i am watching the yields in swee dn, and switzerland, and the eurozone, and japan, and to some extent in the u.s. how low is too low? how much more anxiety over the interest rates are we going to hear. and this segment is called central bankers meet your waterloo, and i will give you two guesses who is the duke of wellington, and who is napoleon bone part? tune in after the break. i was working in the yard, my chest started hurting

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coming up on the "halftime report" another billionaire investor betting on gold. should you as well? we will debate it. and fitbit down 50% this year, but the best week in a year, and our analyst says it is time to buy it. and we will look at the organic food movement, and we will speak to an investor who is betting big on thrive. carl, see you in 15. >> all right. and over to the cme group, and fixed income. over to rick in the santelli exchange. >> yes. this is not only a day, but it is a major turning point, and i'm not sure which exit we are going to take or which road we are going to end up on, but i can tell you this, that the negative interest rates in my opinion are the central banker's waterloo. why? because when i look at the

brexit, and read the stories and just got one now from the smart group that i won't name, and everything about brexit is over blown. i'm not arguing that, because i don't believe it is about many of the issues surrounding brexit directly, but what it is about the last part exit. it is about exit. it is a stencil. going back in time, and the credit cries is and the behavior of many countries in world war ii, there was a period of contrition, okay. you didn't hear much from the institutions, because they hu hunkered down and they took everything that the politicians around the world doved out, and the whack-a-mole financial instituti institutions, and we may have are a hate relationship, but we need them, and that is the fact. and politicians aside. and so the contrition point is ov over. what brexit mean s s to me is t we are putting a big exit sign above a door of a room that many don't want to belong or be insoo

inside of. financial institutions don't like negative rates. and they are not going the like them better tomorrow, and better next month, and they are not g going to to be liking them better next year, and as a matter of fact, everything starts with a crawl, okay. as they find the group, this group, we start to find the bank of japan, and a bank in germany, and little bit unhappy with what is going on, and it is going to gain more steam, and listen, one of the most instinctive characteristics that we have as humans is survival. there is no survival for financial institutions in the big picture if negative rates stick or get stickier. so we are at the crucial point, and when we talk about the things that are assimilated just because we talk about them calmly doesn't mean that they are going to end calmly. i have had many santelli exchanges where they say that the central bankers have never given up the path they are if somebody takes the reins and that somebody is negative rates.

jon fortt, back to you. >> all right. thank you, rick santelli, and up next, i'm amaze. think of paul mccartney and the music reality teaming up for a jaunt of virtual reality experience for the next tour. we will have more on that when "squawk alley" continues. man 1: you're new.

man 2: i am. woman: ex-military? man 2: four tours. woman: you worked with computers? man 2: that's classified, ma'am. man 1: but you're job was network security? man 2: that's classified, sir. woman: let's cut to the chase, here... man 1: what's you're assessment of our security? man 2: [ gasps ] porous. woman: porous? man 2: the old solutions aren't working. man 2: the world has changed. man 1: meaning? man 2: it's not just security. it's defense. it's not just security. it's defense. bae systems. cnbc is unveiling the exclusive disrupt er 50 this week, and highlighting the most

disruptive companies. our julia boorstin is live in palo alto, a hub of disrupters, and join g ing us with the vr reality content shake-up. over to you. >> i am joined by the jaunt ceo and interim ceo arthur van hoff, and thank you for joining us here today. and i got the pleasure of doing a demo, and i felt like i was in nepal, but afterwards i was shaky and i did not want to spend more than 10 minutes in the vr experience and how do you grow jaunt's business when the vr is only something that you can do for a limited period of time. >> well, first of all, we are focusinging on the short-form content, and in the things of vr where thing s as are short and interesting and smacking. you are trying to experience something new, and you know, you can try a number of things and

share it with your friends which is important. >> and jaunt has two parts of the business, software and hardware for creators for the vr and also making the cop tent partnering with paul mccartney and these are two different businesses and why does it make sense to do these things? >> well, we want to be a media company, and to do that you have to have media, and so it is a means to the end to create the vr media and vr experiences in order for creating content for consume consumer, because there is an enormous lack of content, and you to do both in the moment, and on the long run, we will focus more on the distribution component of the content. >> there is not that much content, and also right now, the devices like the one i did the demo on, the oculus head rent, and it is expensive and how do you make sure that it does not become like 3d tv which did not take off. >> and if you have applephone or

the ios phone, you can download the app and try it out yourself and do it without goggles or put the goggles on the phone, and get an immersive experience, and most people have those phones today, and most of the traffic comes are from the users, and if you are enthusiast, you can upgrade to the mobile headset which is the headset which is $99 and if you buy a samsung phone, you almost get it for free or the oculus riff buy, and you can do entertainment, and gaming at the same time. >> and disney invested $65 million and you got investments from chinese capital and chinese media group, and with that in s investment, does it make it harder to be acquired by a different company? >> well, everybody sees a disruption in the entertainment business, and going to new formats and the more immersive

formats and why disney is invest i ing, and creative arts are investing, because they are seeing when there is a disruption, there is a chance for opportunity. >> and thank you so much for taking the time to talk to us, and i'm excited to do more of the demos and see where the vr is is goinging the go in the future. kayla, back to you in san francisco. >> thank you, julia and john. coming up on "power lunch" catch the surveymonkey ceo zander lurie. so it is 2016, and we don't have flying cars, but that could change sooner than you think perhaps. we will have more on that when "squawk alley" returns.

>> bac to the future may have been wrong for the flying cars, but maybe not too far off. bloomberg weeks reports that google founder larry page has secretly spent more than $100 million to develop flying cars. page owns one company that is invested in this area, and not just a fancy idea. one of the aircrafts reportedly takes regular test flights and it is electric powered and there is a lot that we don't know

about the story, but we talked to dean cayman the inventor of the segway who said he would not bet against larry page. >> and who doesn't want one, because what about a flying helicopter. >> and we thought it was a flying hel kopt her in the skies, but it is going to be harder to keep track of what page, bezos and musk are doing in the extracurricular time, and what is a corporate moon shot that they hope to fit in the overall business, but they are not going to be laying low in retirement for sure. >> and a few movers, and qualcomm, and pandora are g getting the benefits of some upgrades. qualcomm cut some pricing pressures entering the ages of cheaper phones, but for the most part, it is a tough day, and the worst day on the closing basis right here in three weeks for the s&p. >> and few exceptions with match group doing well at 4% at this

hour, and feeling the pain it seems. >> and the bond yields on a closing weekly basis, and the 10-year is on track for one of the worst weeks in a long time, and probably over a year or so, and so we go to headquarters with scott wapner and the half. ♪ thank you, carl and jon. and golden eyes with the inv investment joining us is steve weiss and jon and pete najarian and