far, shares of investment bank morgan stanley, regional banks like fifth third and money center banks like jpmorgan chase down by a percent or so. interest rates part of that story overall with ten year yields moving down around 2.3%. watch that trade. that does it for this hour of "squawk on the street." back downtown for the start of "squawk alley." back over to you guys. >> thanks, dom. good morning. it is 8:00 a.m. in sunnyvale, california, 11:00 a.m. on wall street and "squawk alley" is live. ♪ ♪ baby i'm not fool iing back to school yeah ♪ ♪ way down inside honey you need it ♪ ♪ i'm gonna give you my love >> good tuesday morning. welcome to "squawk alley."

sara eisen, jon fortt at microsoft's edu event in midtown, manhattan. first up this morning, apple is going to have earnings after the close tonight. stock hits another record high, its cash hoard could swell to a quarter of a trillion dollars. josh lipton joins us from apple hq in cupertino with all the details. hey, josh. >> well, carl, apple stock surged more than 60% from its low last may. so can tim cook keep those bulls in charge? after the close today, the street expects apple to report eps of 2.02 on revenue of nearly $53 billion. they are expected to ship 52 million iphones in the quarter. that's because many iphone fans could be delaying upgrades as they wait for that new iphone in the fall. he says the wild card this quarter, gross margins, apple

could get stung by higher component prices, but could also benefit as is now withholding royalty payments to contract manufacturers in that ongoing brawl with qualcomm. beyond the hardware, a lot of attention paid to apple services which includes the yapp store ad apple music. they expect to reiterate comments from the last apple call when he said services could double in the next four years. apple's cash pile could also get a lot bigger. companies added average of $7.5 billion to its cash position over the last four quarters. that means apple could now be sitting on a cash mountain of $254 billion. this is the quarter where apple does update that capital return program, ubs thinks apple could increase the total amount authorized from $250 billion to $310 billion. guys, back to you. >> josh, a lot of the sell side is trying to game whether or not

inventory and supply and logistics are going to affect the timing of the eight. that's hard to know until tim cook says it out loud. how much of that is the conversation out west today? >> i think it is always part of the conversation that we listen to when tim cook and luke take to the conference call. i think investors, i think in past this quarter and to the iphone 8 some call it, we expect in the fall. as we talk on the show all the time, the big bulls there, the debate there, bulls will argue, listen, there is a big pool of iphones out there that are at least two to three years old, a lot of the people that already want that brighter display, that stronger battery and camera, skeptics will argue that replacement cycle keeps getting longer. we might have more color today about how that debate is playing out. >> josh, what do you expect for results from china and india? two key markets for apple's growth. >> i think that will be certainly a focus, you know,

last quarter, sarah, obviously the bulls were heartened by better signs out of china, stabilization out of mainland, china, we expect on the call today you get calls about mainland china and questions about when they think greater china could return to growth, guys. >> all right, josh, busy afternoon for you. we'll come back to you later on and talk to dan rosen, with kate mitchell about apple. first, btig hosting its 15th annual charity day. bob pisani is there and joined by two special guests. >> thank you very much. of course, btig's 15th annual event raising $4 million, $5 million for charity every year, dallas mavericks owner mark cuban joining us, shark tank star and also the real star of the show, steve stark of the ceo of btig. how do you get mark cuban, derek jeter, a-rod we're talking to in a few minutes, shaquille o'neal,

mike bloomberg, month after month, year after year? >> groveling and being nice to them. it really developed into something really special. everyone gives their time and energy to give back and show the good side of wall street. >> $40 million you raised in 15 years to your credit. mark cuban, what is on your list these days? i want to talk about artificial intelligence. that's in the news. everyone says people will lose their jobs. i had a discussion with you, you think it will make people more productive and will help the stock market. >> i think people will lose their jobs unfortunately. there will be some disruption. hopefully entrepreneurs like myself will find new ways for them to work. in terms of the market, larger companies, you're going to see dramatically improved productivity. you're going to see hopefully revenues go up, but the number of employees to do those revenues -- support the revenues go down significantly. i think that's going to increase earnings and so companies that are geared towards artificial intelligence, machine learning, deep learning, i've been buying. my biggest holdings are amazon, the leader in the space, netflix, who for video, and i

started buying twitter recently because i think they finally got their act together with artificial intelligence. >> stock market doesn't need a lot of help, risk factors were we worried about have mitigated, the french elections mitigated concerns about europe, earnings coming in better than expected. we were talking the guidance has generally been better than expected overall. now we have the tax cuts at least in motion at this point, what could derail this train? >> i think unemployment going up. i think it will go up. we saw that retail workers, 90,000 retail workers that were put out of work in this past quarter. so i think there say really strong chance that unemployment can tick up and that could freak some people out. i think the net effect is it will be higher earnings. >> sentiment continues to be bearish, historic lows, sentiment reits, high cash levels, putting money to work. that continues to be a tailwind for equities since february 2016. >> but you're still saying green on the market.

we were talking earlier, you think the market can go higher. >> i'm constructive. katie thinks 2450, with cash levels and sentiment, as bearish as it is, i think -- and seasonality effects as well, i think we're short-term to intermediate term we're okay and pullback over the summer. >> that's katie stockton, your technical analyst here. >> my predictions haven't been great, but i'm here to tell you, fortune 50, fortune 100 companies will be able to support their current levels of revenue with 30% fewer employees. >> you have the most interesting tweets, always fun to follow you on twitter. you had a good one on president trump. every interaction president has had with a foreign leader has been positive. >> yeah. >> you think so? >> he's a good meet and greet guy. he's personable, can sit down and have a conversation with anybody. he's a great salesperson. and, you know, sales people are great at doing lunch. i give the president credit. when he's met with president xi, across the board, any country, seems to be a positive

interaction. >> how do you rate the first 100 days? >> c minus. i say economically i like what he's doing, i like the plans put out there. but if you don't learn from history, you're doomed to repeat it and there is little things like, you know, the honorable -- heading to north korea, and then at the same time saying you're going to charge south korea for thaad defense. those are nuance things you need to do your homework about because your words matter. >> how about the tax cuts proposed so far? >> look, it turns out the actual numbers -- >> the details. >> 15% is not going to happen. reducing the tax rate, simplification, i'll tell you what, what has not been talked about what i love, what he's doing with the ftc. the biggest inhibitor to small business is ridiculous licensing fees. the state of louisiana, you have to have 40, 60 hours of training in order to be a shampooer, right, just to work in the salon. the ftc is working to solve that. i'm anti-net neutrality.

having more open markets, we don't need more regulation there, so i think what they're doing with the ftc is great as well. those are the changes that don't get the headlines but will have the greatest impact. >> can he pull through? the market has been holding up on the trump trade, lower regulations, tax cuts, infrastructure spending. is he going to be able to get anything close to that through, enough that will satisfy the market? there is some kind of premium in the market right now. >> this may play right into seasonality over the summer where you get that pullback, when maybe some of these things don't come to fruition, as he lays out in more depth what he's thinking, the markets don't like it. >> government has shut down. and i think he should be taking a lot of credit for that. maybe it wasn't the exact numbers that he wanted in terms of the budget, but he got it done. there were a lot of people who didn't think that would happen. he should be -- you need to go across aisle to get budget extension passed and he hasn't talked about that. i don't think he takes credit for the things that are most important and does take credit for things that possibly get him

in trouble. >> you give him a c minus. you retweeted a tweet, somebody said, mark cuban for president, 2020. you retweeted it. that takes a lot of nerve. >> he's getting votes in the ratings room. >> is this a serious idea? >> we'll see what happens? it is not my dream to be a politician at all, trust me. like all of us, we look at what is going on and saying i could do that a little bit better. >> has to make the playoffs a couple of years first. >> shark tank a hit. a hit for us. a hit everywhere. people love it. it somehow brought people into the whole entrepreneurial spirit, aspiring -- >> that's why i do the show. >> how much more life does it have? >> we start shooting season nine in june. little bit more than a month, we'll be back again, the gang will be back together. look, the reason i do the show, it sends the message to kids of all ages, the american dream is alive and well, and that's what all this is all about, right? >> twitter by the way just popped on your comments here that you're buying twitter.

what is it that interested you after it was beaten up? >> twitter -- the key to artificial intelligence is data. twitter hadn't been able to harness the data to be smarter in how they deliver tweets and use information and how they deliver ads. now they started to hire the right people, starting to get smart, you see that in the results you get other than chronological. you see things that are relevant that make a difference. >> and big announcement on twitter and bloomberg yesterday. >> we'll see if we get mayor bloomberg on. the big four stocks, of course, your apples and amazons, they have been leading the charge, the biggest gainers of the nasdaq 100, responsible for much of that. when do they pull back? >> i don't think people realize the impact of artificial intelligence on the performance of the stocks. they are going to accelerate. companies that know how to harness new data and take advantage of apple, netflix, facebook, google, amazon,

twitter, they're going to -- they're crushing the world. here is the example somebody gave me i thought was brilliant. they said it was scott mcneely, ceo of sun, he goes, how much money do you spend at amazon? have you ever met an amazon employee? >> i see three charges a day from my wife on my amex? >> it is crazy how much we spend. that's the fundamental change. when amazon opens up a grocery store, not because they want to sell you groceries, because they want to know what you buy and when and what you need and how to use that data to better service you. the game will change, the industry, the world is changing, we'll see a lot of disruption in the nature of work. >> the divide is on one half people say there is always disruption from technology, the buggy whips are gone, the telephone operators are gone. and other half says, that's true, but this time it is different. the disruption from ai is across all categories. >> that's exactly right. i started feeling preseason 1982 when i was 6 months old. no. then i started selling local

networks and then started streaming on .internet, then high definition and the first all hd tv network. so when you -- this is going to be more disruptive than the past 30 years combined and will come faster because we're starting to see such an increment and such a dramatic increase of processes and speed. it is different because it is faster. and it is more impactful across the board and it is harder to harness, right? bigger, smarter companies, able to spend the money, and smaller companies aren't. that's going to create an issue and it is -- advantage goes to the f.a.n.g.s. >> rest of the market, we're at 2400, essentially, at historic highs, five points off historic highs. end of the year, at 2500? do we get anywhere close to new record highs? >> who knows what the peaks and valleys are going to bring. i think the market could accelerate because of earnings. i think when productivity is going to skyrocket, even though unemployment i think will go up,

a dichotomy there, but that's my feeling. it will go higher -- >> 2450 on the s&p, midsummer pullback and higher as well by the end of the year. >> tech has been affirming their earnings for the full year, big industrial names raised their full year guide ans or affirmed the ge -- >> to me, the most important -- across the s&p 500, look at the number of employees each company has. watch them fall like that. so your productivity will skyrocket. >> mark cuban, thank you very much. steve stark, thank you for everyone engineering this 15 years. >> the man. the man. >> derek jeter will be here. alex rodriguez will be here very shortly and a whole host of other people here. >> btig charity event, back to you. >> good stuff, bob. we're watching twitter pop, on cuban's comments. let's bring in dan and kate mitchell. good morning to you both. cuban's point about earnings,

dan, has been held up at least so far in the earnings season, what do we think apple will say tonight? >> well, i don't really worry about the quarter for apple. the reality is they have pretty much close to monopoly in the most important thing that everybody carries, their phone. whether they buy them this quarter or next quarter doesn't matter. the big companies i think mark is right, the big companies get increased leverage, apple, microsoft, facebook, google, you know, amazon, doesn't matter. the bigger they get, the more leverage they have and the better their opportunities are. i think apple will continue to be on a roll for years to come. >> interestingly, kate, mark mentioned apple with a number of other companies including twitter he likes as ai plays, not necessarily something we think about, or hear about often when we talk about these companies. it is not driving their revenue directly right now. are you guys in the valley seeing it that way? >> i think we look at every company that, you know, ages ago, on the internet, secondly,

had mobile, some sort of mobile aspect to their business at this stage, you aren't playing the game at all. if you don't have some form of artificial intelligence. the way apple can use artificial intelligence is like netflix. if i'm looking for an app or music for any of us have searched in some of those and want to find something new and different it can be difficult and artificial intelligence will help me get to that much more quickly. i will be a naysayer on their quarter, not that i think it is going to be down so much, but i think it is interesting you look at ibcs numbers, which they released for q1 sales, they show that samsung overtook apple without a new release of a phone, a real brand recovery for samsung. and now apple moving back into second position. so i think the hardware business for apple this quarter might be a little bit sideways. and with the chinese coming -- manufacturers coming up from the bottom, again, i don't think a

disaster, i agree with dan, you never count out apple as a winner, but still in that neck and neck race with samsung having shot themselves in the foot with their new phone, for them to be back in first place, it is going to be an interesting quarter to see. an interesting battle between the two. >> fascinating. i think it was walt who said samsung's quality problems probab probab probab probably bought apple a year. investors wrestle with this issue where these companies are so large, their distribution chains are so wide ranging that they can't possibly make enough phones and so we all worry about supply chain and logistics going into the print. >> yeah, look, there is -- that's the challenge with quarterly earnings, the demand will be there for apple products for all these large companies, products, whether they deliver them all in a quarter or not doesn't really matter. over time, if you look at what apple has done in the last year, last two years, how many times have we had a conversation about

supply chain or whether they're in first place or second place and now in an all time high again, just keeps hitting record after record after record. you talk about artificial intelligence, what you're talking about earlier, the simplest way to understand it in terms of a company like apple, like amazon, like che, our earnings were improved by the more data you have, the better you can match it and grow your business. those things happen at scale in the bigger companies. i don't worry about any of these big companies right now. i said it for the last couple of years, they essentially have no competition for what they do overall. they might in a particular segment, but these are phenomenal companies who are just doubling down on investing and technology, and the results continue to reveal just how efficient they have become. >> nice how you included che. >> if my stock was up 20%, i would sneak it in there too. >> revenue guidance. >> we're up 140% for the year.

for year over year. but that's the reality of being an all digital company, the reality of having a significant place in a large market and being able to use data to your advantage. we see it as amazon, at facebook, at -- mark thinks twitter is tarting to do it. i don't think it will reveal itself in a lot of the companies until 2018, it takes significant reinvestment to do it. but it will have a dramatic effect. >> kate, wanted to ask you to button up the conversation on apple. how much do you think this big surge we have seen in the stock and investors embracing it is about high expectations, the eight coming this fall or self-driving cars, that secretive project, augmented reality, all the big bets we read about coming from apple, either this year or in the future. >> well, just as dan said, you can't count a winner out and the one thing you didn't mention is their treasure trove of cash that continues to grow quarter on quarter. and also for which there is hope and tax reform, they repatriate

at least at lower cost than they can today. i think you take those things together. that's absolutely apple's bet. they have the resources, the people, the brand, they continue to attract the best partners, best people, best developers. it is a lot. you look at the success of small f.a.n.g.s, not just services, but air pods, the new -- in the ear phones, bluetooth phones, they're starting to take off. and they experimented with watch. augmented reality, they have so many things that they are testing going forward and they have the resources to do it. i think as dan points out, you have those kinds of resources, that kind of brand, you just continue to distance yourself from a competitor, so i think it will be an interesting year and that's a lot of what people see happening within apple. a reason people are enthusiastic. >> it is always a fascinating quarter to look at and call to listen to. kate, dan, thank you. appreciate it. we'll see you next time. when we come back, back to

the global conference in l.a. where david is setting down with mark attansio, and then to microfost's education event with yousef mehdi. later on, live from the charity day with derek jeter and a-rod, a busy hour, dow is up three points. don't go away.

welcome back to "squawk alley."

>> we are joined right now by mark attanasio. one of the larger independent credit managers, all out here on the west coast, that has something to do with milken. there say connection there, no doubt. i can think of so many firms, brian and sullivan and i were talking about this in l.a., that managed so much of the fixed income in this country. interesting. nobody seems concerned about your market. why shouldn't that concern me? >> well, it concerns me. but as a fixed income investor, you're always concerned. there is no catalyst we can really find that is active to bring an end to this cycle. it starts with projected low default rate this year. we're projecting about 2%.

and even for companies that could be in danger of having default, there is just no trigger. there is maturity dates past 2019. so, you know, with that, and it seems continued low interest rates, steady as she goes. >> steady as she goes. we're seven, eight years into a cycle, that's pretty long in the tooth. >> very long for a credit cycle. and david, as we were speaking, we hear this a lot from foreign investors, interestingly u.s. investors seem to be more benign about that fact, maybe because they're here. foreign investors worry about that. but at the same time, they need the yield. in a world that still has, you know, no interest rate. so we have foreign investors who question us at every stop, in asia and europe, about when is the cycle going to end and they finish by saying, well, about 5 to 6 today. that is very okay if you think about a contract claim, and u.s.

company, for foreign stref einv who can't get anywhere near that? >> you said 5.6%, roughly in that line. we have seen energy come back in a big way in terms of issuance after what appeared to be a crisis not even that long ago. >> right. energy this year so far we have really terrific issuance, i think, in the high yield market this year. a sign of health in the market. after taking a pause last year. and energy and metals actually led the way. so it is indicating a risk entree. people are -- as they're feeling more benign about interest rates, they're looking to take credit risk and those securities provided the most yield. energy today yields about 7%, so you're still getting an increment over the high yield market of about 5.5%. >> judging from your comments earlier, you seem to think rates like so many other people believe are going to more or less stay in this range or are we ever going to see 3% on the ten year, soon?

>> i don't know about soon. the thinking shifts. so a number of us are going to be on the credit panel later on this afternoon. one of the big questions a month ago, how do you manage against the backdrop of higher interest rates? we prepared our presentations and now it doesn't look like that's going to take place. and what is different about our market now is it used to be a security selector market, now there is a razor sharp focus on data points like gdp growth and employment and checking the fed dots to see what governors are saying about interest rates. and there has been a shift, just tracking how the market itself -- >> after the election, which is not that long ago, of course, there was a general consensus it seemed we were headed up and did head up very quickly. you argue now that the weight of that data you're citing indicates lower for longer? >> lower for this -- this year, maybe one rate hike is what -- that is how the market is

trading things. we try to focus on making individual credit decisions and looking at the backdrop or making -- if you look at all the indicators, you would say, maybe when -- by the way, if some of the data continues to come in weak, you won't have a hike in -- the prognosticators think a hike in june, maybe not june, maybe one this year. >> should i be concerned at all, seeing leverage again in the system, in terms of people juicing their returns with leverage, something they were not doing after the crisis. is that concerning or sort of part of what you expect? >> a little of both. and because markets swing in -- pendulum swings too far in one direction, i need investors in 2009 and 2010, they all say, we want complete liquidity and absolutely no leverage. and now folks are saying, can you help us find some private investments, lock up our money and, by the way, can we leverage them? leverage can be useful.

u.s. companies, 2% default rate in the broad market, our default loss to crescent -- default rate is well under 1% over 25 years and really the loss is like 50 basis points. so you can put a little leverage on that. but we would only look at leveraging like one time. but with one time leverage, you can add 300 to 400 basis points. >> finally, while we end here, of course, are you concerned at all about the consumer? credit card delinquency rates are up, auto sales are softer, any concern there? >> yes. that would be where our main concern would lie, again, if we're looking around the corner for the next problem would be, you worry about consumer data at an all time high, and you're starting to see tickups in those areas. now, a bunch of subprime auto loan defaults won't sink the ship. if you have another problem in the mortgage area, you will. i don't think, though, that's going to happen if the magic of

low interest rates, you know, prevails. and by the way, that's true in the corporate sector too. we have slightly more leverage in transactions versus the last cycle. but we have more free cash flow because interest rates are so low. so i think it is all about the -- >> all rosy, man, until it is not. mark, thank you, as always, for joining us. >> thank you. go mets. >> go mets. he is the owner of the milwaukee brewers, having a pretty good season. 14-13, but i'm sure you already knew that. >> exactly. thank you. love the conversation. up until that point. david, thanks. still to come, microsoft shares hitting all time highs today as the company unveils new products for education. one of the executives will join jon fortt next. and later, live to the 15th annual charity day, where bob pisani is hanging with all the stores, derek jeter and a-rod when "squawk alley" comes back.

good morning. i'm sue herera. here is your cnbc news update at this hour. former south carolina police officer michael slager is pleading guilty to violating the civil rights of an unarmed black motorist that he shot and killed in 2015. state prosecutors are dropping a pending murder charge. his first trial ended in a hung jury. greece and creditors reached a deal that will restart bailout

loan payments and keep the country from facing default. they agreed that greece should make another round of pension cuts in 2019. parts of eastern missouri are still under water after heavy rains flooded the area. floodwaters have closed some 700 roads across that state with more expected to shut down as the water continues to rise. and a new monument is reportedly planned for arlington national cemetery. the military times reporting the monument will honor american helicopter crews who flew during the vietnam war. it will be constructed near the tomb of the unknowns. that is the news update this hour. back downtown to "squawk alley." carl, back to you. >> thank you very much, sue. a big week for tech stocks. apple reporting tonight and then going into facebook and reporting tomorrow. amd will be a big story today. stocks down 19% as you recall, four cent quarter loss within expectations, but their guide for q2 was mixed. a lot of discussion about their

margin guide, which was disappointing and for a name that is truly been a high flyer, we toss that term around a lot. a lot of investors were sitting on gains they could sell. >> right. i think that's a key part of the story. the stock up now only 200% in the last 12 months. that number was well above that before the quarter, of course. locking in gains and potentially priced for perfection. intel going the other way, to the top of the dow. after it had a negative reaction to its latest earnings. >> back to pisani at btig's 15th annual charity day with another special guest. >> important thing here, 15th annual event raising -- shooting for $5 million to raise for charity. mike bloomberg joining us and mr. hay mmayomayor, you have be busy lately. you have a new book largely on environmental issues. tell me about it. >> we all talk about climate change and the environment, and

those things are really real. but people are worried about it, i think we should be hopeful about it. there are individual problems, we're making a lot of progress, and if we continue, the united states will be the only major country to meet these french top 21 agreements. and the federal government, i hope donald trump will listen to some of his staff and become convinced that he should be very pro environment, but even if he isn't, it is the private sector and local governments, both corporations that are really making a big difference here. you paint your roof white because it saves energy. that's good. you buy more fuel efficient cars because it will cost you less gas, that's good. your companies want to invest in solar power and in wind, because it is a lot cheaper than coal and natural gas, that's good. so really you are making a difference. >> president trump said he's considering abandoning the paris

accords. >> he said that, that's true. but number one, i hope he changes his mind when he listens to his daughter who supposedly is a big advocate of staying the course. and even if he doesn't change his mind, it is the private sector that reduced greenhouse gases. we are two-thirds of the way already towards the targets for 2025. without any help from the federal government. so we're going to make this regardless, but i just would like to see the president change his mind, and he's done that -- >> do you think we're moving towards the goal regardless of what the president does. >> the federal government has done next to nothing to help the private sector and local governments and, yes, we have closed more than half of all of the power plants in this country. that reduced greenhouse gases dramatically and we can do more. >> won't matter if the president continues to -- >> it would help if he's on board and we should work with him and try to convince him this

is the right thing to do, the right thing for the country, it is the right thing for his kids, it is the right thing for him and his wife, right thing for all of us. you need clean air, clean water, and we have got to worry long-term about changes in the climate. >> how do you rate president trump's first 100 days in office? >> i would say the job and first 100 days is to build a team. that's what i did when i was in city hall and people kept saying, but what did you do? i said, i built a team, what did you do? i built a team. that team, most of them, stayed with me for 12 years. they were the ones that dahl of the things, i got the credit or the blame, i made the announcements, but they did the work. that's this president's job and the first 100 days. the next 100 days, build a team. if he gets good people, and if he delegates authority to go along with responsibility, he'll have a successful administration and the whole country will benefit. >> what which side of him will win, the steve mnuchin side or

steve bannon side? >> i don't know it is -- i know steve mnuchin's father very well. i only met steve once. i never met mr. bannon and i don't know the internal politics of the administration. but it is america and we're all here working for the same thing. >> you spoke of building a team. i remember when you were the mayor, some of the initial policies were controversial, stronger gun control, the ban on sugary drinks, and yet many municipalities have now adopt a lot of these ideas. do you feel vindicated some of these ideas people felt were crazy, the smoking ban, people thought you were crazy. >> one finger waves when we put in the smoking ban, but today it is the policy that the whole western world and even some of the other parts of the world are following, saved an enormous number of lives, full sugar drinks, consumption is down, people are switching to other things and the manufacturers are switching to other things. they'll still have a business. their employees will have jobs.

but if we eat healthier and we avoid some of the things that are detrimental to our health, we should have fire detectors, smoke detectors in your apartment, saves a lot of lives. guards on windows so kids don't fall out. simple things like that. and people should exercise and watch their weight, don't smoke, and drive sanely and you'll live a lot longer. those are kind of things that government shouldn't tell you what to do, but government should tell you these are the things that will let you live a long, healthier life and you should make your own decision. >> better immigration policies, you were very big advocate of this very early on. you're differing with the trump administration dramatically here. what advice would you give donald trump? >> we need people from overseas to come here to go to our universities, work with us and create the businesses of the future. without that, we're going to get left behind. global trade is the thing that has reduced pofr verty in the wd

over the last couple of decades. if technology continues to destroy jobs, which it will, we have to have more trade, and so global trade and immigration where people buy our products, sell to us, and create new businesses, this is the future of this country or we'll be in trouble. >> let me ask you about the future of the media business. you started out, you became a titan in that business here, busy in the last 24 hours understanding starting a live streaming service with twit erk bloombe bloomberg. tell us about that, and how that fits into the new concept of the global 24 hour media. >> people want news. some want it distributed in sound, some in pictures, some in tables, some in graphs, some in text and then the delivery devices, more things whether it is your ipad, your iphone, whether it is the -- on the side of a building, whether it is in paper, a magazine, whether it is on a computer terminal, all

those combinations give people great choice. and twitter is a very large news organization to gather information. bloomberg has 3,000 journalists working on sophisticated financial information, and upscale, i think it is fair to say, upscale kind of product. together i think the two things will have enormous synergy. >> where does artificial intelligence fit in? is it a net loser of jobs, help jobs? where do we come down on this five years from now? >> genetically modify foods and artificial intelligence are things people talk about. we have been doing both for a long time. farmers have bred better crops. people used information to achieve decisions. ai is another tool. won't take over the world, but it is a useful thing. in the end, however, you get down to having human beings

making decisions. and for all of the technology we live in an analog world. your company and my company will succeed if we have good people. if we have good people, we can help our customers. technology may let us talk together, and share information together, and analyze a few things together, but i wouldn't worry about going away from human decisions. i do worry about a lot fewer jobs available and we talk about training people, we have to have better schools for our kids and going in the wrong direction. we have to retrain people where their businesses go away and jobs go away. having said all of that, we have to find a way to create more jobs, technology is giving the consumer a much better product, much cheaper, much faster, more alternatives, but at the expense of fewer workers and we have to find ways for companies to create jobs as well as profits. >> mayor bloomberg, thank you very much for taking the time

out to be with us. always a pleasure to see you again. derek jeter coming up, alex rodriguez coming up, a whole host of other people. back to you. >> i'll take it, bob. keep them coming. thank you very much for that conversation. now we want to go to midtown manhattan where jon fortt has been standing by as microsoft prepares to unveil a bunch of products. he has a special guest. >> jon? >> they have unveiled them here in midtown with the use of -- let's talk about this laptop, who is this for, why announce this? >> sure. well, today has been all about education. we showed a range of things today from surface to windows to new experiences. what you're seeing here is the brand-new surface laptop. this is 2 1/2 pounds, 14 1/2 hours of battery life, thinnest display screen ever made, incredible performance. built for higher education. let me show you what you can do with it. >> running windows 10s, more

lockdown, everything you're getting, you're getting app wise from the windows store. that's what enables the longer battery life. >> streamline performance, superior security. this is complete anatomy, an application you use, imagine today, we have textbooks, learn about the body, come in here and i can click on the skull. and you can see now, by looking through, i can get incredible detail, look at this zoom in here. incredible power because of the laptop. if you want to do some things here, i can come in, and really understand, for example, how the bones relate relative to each other. great power. >> if you want to upgrade to windows 10 pro for 49 bucks, you can do that also. tell me about the laptops over here. hp starts at $189. this is microsoft's assault on google chrome books, chrome os taking over education, they gained a lot of share. you think that with this strategy you can pull it back. >> yeah, one of the biggest

things weigh he s we hear from d students, with windows 10s, you can get complete experiences like this 189 or this travel mate. this is under 299, full convertible, pen, touch, ink, and has 10s running on it. >> office 365. >> office 365, mine craft for one year included with this pc, the office for 365 is free as well. you get the manager. we introduced new features like code builder for mine craft. now you can actually teach kids how to code, one of the biggest problems we have in the united states and globally, how do you get kids to learn to program. >> if i'm an investor, why shouldn't i look at this and think there is a big sucking sound of profits coming out. you're giving away office 365. those are all profit centers.

how does this support for education turn into profits for microsoft down the line? >> the way we think about it, first of all, education is a fraction of the microsoft business. a small part when you look at the broad breadth of business review. the importance of enabling our future leaders, for politics, for medicine, business, is incredible. so have these experiences and use these in their workday, work life, that's a big opportunity. so that empowering of the students for the world is more, that's our big mission. >> after they graduate, they'll start paying once they go to work and want to use some of the same tools, is that part of the thinking? >> the fact you can use the same tools you learn in the classroom with office, for example, 365, or with windows, and then be able to use great devices, you may say, i want to surface laptop, another great oem laptop, that's a great opportunity. >> mixed reality, pearson bringing some of that as well, also part of the picture here. lots of educators, students also part of the audience, thank you for joining us.

>> thank you very much. >> back to you. >> jon, thank you very much. when we come back, derek jeter and a-rod join our bob pisani live from btig's 15th charity day. dow is up 24.

i'm scott walker. the moment of truth for the nasdaq. the market gets ready for apple's herbings today, facebook tomorrow, of course. plus, debating mark cuban's call on twitter.

that spike, he mentioned it. and one of wall street's most respected voices on retail, dana telsey is here the halftime report starts at the top of the hour. sara, we'll see you in about ten minutes or so. >> all right, yeah. funny to see the twitter comments on that. let's get an update from the house transportation commit hearing. oscar munoes has been taking questions .phil lebeau joins us with some of the headlines. >> and that hearing continues. basically, separate from the criticism, they've all been blasted by members of congress. separate from that, the questions come down really to two areas.when it comes to regulating or further regulating airlines, one, should they be allowed to overbook flights? is there have been a few members of congress who have said, look, i'm really not sure this process makes sense. southwest pointing out it's ending that process on may 8th. it will no locker joef book

flights. separately, regulations, should they be complemented when it comes to the cost of changing your ticket reservations. typically for more airlineses, it's a $200, $250 fee. members of congress pointing out this has been very beneficial to the bottom line of airlines and at the same time maybe customer service has not improved commensurate with the improvement of that bottom line. we're going to continue listening to this hearing. those are the two areas where members of congress are threatening to further regulate the airlines. back to you. >> yeah. and in an age of deregulation, talk of more regulation on airlines. phil, thank you. >> you bet. still to come, we'll take you back to the annual charity today. special guests, a-rod and jeter. stay with us.

let's get back to bob pa sassny and btig's charity day with two more special guests. >> the important thing here is they're coming in fast and furious, btig's 15th annual charity event here. this is like abdomen all-star event here. let's talk with derek jeter and alex rodriguez.

alex rodriguez, 12 or 13 seasons, 2009 world series champion. this is a treat to see you two together. since you both hung up the jerseys, you guys are friends now, is that what's going on.? >> this is exactly how we were back in the day. >> just together, right, both of you. >> yeah. >> but the press made a little thing about the back ask forth between you two. was that real or a serious effort. >> you're bringing up stories from about 15 years ago. >> the important thing is here, you have moved on, you're raising money for charity here. >> i'm representing the boys & girls club from haem. that's where i learned how to play baseball when i was ten years old. and it's a wonderful organization. >> and alex, what are you representing? >> i'm here -- >> go ahead. >> the turn two foundation, a foundation that started more than 20 years, prevention of

drug and alcohol use for kids. happy to be here. >> we were going to talk to you about the charity events, but you sort of moved everything around here with what happened last night at the met. you sort of spilled the whole show. >> this interview is going all kinds of places. we had a great time. it was an awesome night. a celebration of art and fashion and i was looking for my boy, derek, but he wasn't there this year. >> you showed up with j. lo, of course. >> there it is. people want to know. i came in and look at the paper, tease what's there in the paper. >> that's great. okay. we're going to keep moving on. tell us what you're doing these days here. you're working with the foundation there, the turn two foundation now trying to raise charity. tell us more about that. >> prevention of drug .alcohol abuse started back in 1996, my first year. and -- >>ing. >> i haven't seen him in a while. >> i went about 20 years ago to kalamazoo and we did a clinic for about 200 kids with his sister, charlene.

they have an awesome organization. do you remember that st. paul yeah. >> almost 20 years ago. >> we want kids to maximize their potential and we try to help them out as much as possible. positive influence necessary their lives. >> you've been in the news recently, not at the met galla, but you're interested in buying the marlins now. tell us more about that. >> there's absolutely nothing to add to that. the media ran with the story but there's nothing to add. we're here at the bti fw charity event. >> $1.3 million is a lot of money to buy a big league baseball teal. you're going to be involved in that if we get the deal done? >> like i said, we're here for the charity event today and we're not here to talk about anything else. >> the fact that steve has raised over $4 million for this is awesome. yeah. >> it's a great event, it's fun and because of his personality .how great of a man he is, he always has a grate great showing. >> that's how he gets guys like you to show up. >> for 15 years ooefb coming to thp the it's amazing the people that show up. before i let you go, let me ask you about the game of baseball.

there's people arguing the game should be speeded up a little bit. i've heard some people want a pitch clock, some people want to shorten the innings. should baseball be speeded up or is it fine the way it is now? >> games always evolve over time. so yeah, i think obviously the new generation, the millennials like things to happen at a faster pace, but you also have to make sure the game stays pure. baseball in my mind is the greatest sport in the world. but there's always time to evolve. >> where does it go from here, though? is it going to be -- i've heard people say it's a three-hour game. it's hard to get out for a three-hour game at this point. same problem with golf. people play less golf. >> we have great leaders and they're spending a a lot of time thinking about how to reengage their youth. the greatest game in the world. we have an epic opportunity to make baseball number one again. i know when we grew.up, baseball was the number one sport in the world and hopefully we get that back. last year, we had 42 million

people watching game seven of the world series. >> huge. >> is there a market for baseball and i think we're coming back. >> that was huge. >> the rest of the game sometimes is not as great. did you enjoy the met galla last night? did you enjoy the met galla? three hours. >> the met galla last night -- >> i was not there, no. >> i thought you were going to try and make it there. did you enjoy the game, the met galla last night? >> i did. and katy perry pout a great show. and, again, it was to highlight fashion and art and it was an awesome event. >> gentlemen, thank you for coming. it's always a pleasure to see you and thank you for donating your time here. derrick joo derek jeter, alex rodriguez, thank you. we'll have tommy hilfiger, regis jackson just walked by and said hello. it's a great day to talk to a lot of wonderful people donating their time to