it's 11:00 a.m. in washington, d.c. and "squawk alley" is live. ♪ welcome to the jungle we got fun and games we got everything you want we are the people you find whatever you may need ♪ >> good monday morning welcome to "squawk alley." i'm carl quintanilla along with morgan brennan and jon fortt roger mcnamey and our own becky quick in omaha are joining us this morning we'll get some of the headlines from the annual berkshire meeting and her conversation with warren buffett. first, jon fortt sits down with satya nadella after the company kicks off its build conference. >> i can't tell you everything yet. that developer conference is literally starting right now some news we will share with you as it happens. as you expect, we had a conversation about cloud, about artificial intelligence, about

his leadership at microsoft and even some things that he got wrong in his first years at the company. though, there aren't many. the stock is near all-time highs around 95, 96 bucks a share. we talk trade and china specifically we covered a lot of ground, carl i had a chance, of course, to sit down with him. it was wide ranging. and so we'll have a lot to share. i'm going to share a little bit right now. let's do it. >> if you look at amazon and us, if there's one common ground we have between us is that we believe in our personal digital assistance, whether it's alexa and cortana, in fact, working with each other. i think that sometimes strategies can work for some of the time but not all of the time some scale players will always be competing i'm not a believer in these winner take all type of

dynamics. >> and he's not a believer in being nice all the time to his rivals he has some critical words for amazon and google as well. much more from that interview as well. >> that will keep you glued to your sets for a while. talking with becky this morning, let's get to becky in omaha and talk about what you might have missed on "squawk" today. >> buffett speaks and people tend to listen that was certainly the case with shares of apple. he told us friday he was doubling down on his shares of apple. you watched the stock that day, it closed at an all-time high, trading at $183.63 last i checked it was trading above $187 you may think that's great news for buffett. he would prefer to see that stock drop if that was the case, he would buy more

when he buys a stock, like apple, here is how he thinks about it. >> we're not buying a stock when we buy apple, in our minds we're buying 5% of a business. we buy 100% of some businesses and when they're publicly held, we buy 5%. we bring the same thinking to it and we like very much the economics of their activities and we like the management and the way they think, and the way they act. >> now you could say that he's late to the party with apple because the stocks market capitalize was around $700 million, maybe more before he started buying shares. that's something he acknowledges but does say it's better late than never some other technology stocks he says he should have known in hindsight, should have realized how great they were and wished he would have invested in them he talks about stocks like amazon.

>> it far surpassed anything i dreamt could have been done. if i dreamt it -- if i thought it could have been done i should have bought it then. i knew he would do the most with whatever idea he had i had no idea it had this potential. i blew it. >> you can also count google among those missed opportunities. >> i had seen the product work and i knew the kind of margins i always said it's great to find something that costs a penny and sells for a dollar and is habit forming. this doesn't cost anything it's very useful what i didn't know is whether there would be more -- i didn't know enough about technology to know if this was really the one that would stop the competitive rates and all that but i should have done google, too. >> you wonder how he should have known google he had an experience with this, meeting with sergei and larry,

particularly through geico, owned by berkshire hathaway. they were paying $10 a click through. he knew that's what they were making and knew how little it cost google in terms of what that meant to them he said he should have put this all together much sooner it was because he had real insight from things like geico back to you. >> we'll keep you around a little longer as we talk to roger mcnamy. missing alphabet, amazon and to some degree toss in the mistake on ibm there. >> i take two things from it first is warren buffett is a human being. i have a list of things of would've, could've, should' ve from my clear. it's encouraging to me as a

lifelong investor to know that warren buffett has the same kind of fears that i have the signal that he has given us here is one that i take very seriously, which is that the tech industry is no longer the crazy, wild west situation it was, say, 10 years ago i think he legitimately feared an industry where change was so rapid that it was hard to anticipate what would happen next but i think for a variety of reasons, the major tech companies had reached a level of dominance that, frankly, looks like the rest of the company there really is no competitive threat to apple, google, amazon, even microsoft and from his point of view, i think the whole sector looks like the rest of the economy and i think everyone should look at it that way unless there's a change in anti-trust regulation, unless there are other changes in regulation that affect this

industry, it's going to go forward the way it is today. and the success or failure of these companies is really going to drive the return opportunity in the space because it's very hard for new things to get going. >> roger, this idea of whould'v, should've, could've, is there something to be implied about how he looks at those valuations or what investors should take way from that that are continuing to buy into these stocks >> that's a great question i don't know whether he's telling us with this that buying them is just around the corner or whether -- and he just doesn't want to signal a forward move or what i look at these things and go, if he looks apple it's hard not to like amazon for many of the same reasons. anti-trust issues at amazon are real but that's not happening in the near term and candidly amazon investors will come

through that really well anti-trust regulation is one of those things that typically works out really well for investors. >> yeah. >> so i look at this and go, i bet he's looking for an entry point on those stocks. i think that's the signal he's probably giving. that's the signal i take. >> becky, has warren buffett changed the way he looks at technology stocks? for a long time it seemed like he was holding them completely at arm's length. that was the reason why not to get into google, amazon, et cetera then when he got in, it was with ibm. if it had just been microsoft -- if he was going to pick one line company to jump into is his choice of apple now based on different modeling, different mind-set that will make him better at these picks going forward? >> yeah. i think he looks at the entire thing differently. he says that apple, as far as he's concerned, is just a consumer goods company he doesn't view it as a

technology company by the way, he still has a flip phone. he doesn't even own an iphone. although a shareholder did send him one recently he said he hasn't bothered to figure it out. this is a consumer products company at this point. he has seen it with his grandkids and others if you are in the apple ecosphere, it's a very sticky ecosphere, you're somebody that's going to stick around, just looking at how they do that he doesn't feel so comfortable with technology plays but says this is different. he gets this, because this is a consumer good. it has a competitive mode as far as he's concerned. it fits into his modeling in a different way. just because you bring up microsoft, let me tell you something he said this weekend to the shareholders. you've been friends with bill gates forever. he's on your board how come you never bought shares of microsoft he made a point of saying he dernl aid long time ago when he and bill became friends he should never own shares of

microsoft because no matter what happened, if he boughts shares and stock went up because the company made a move, that nobody would ever believe he didn't know about it in advance he said there are very few restrictions on what he buys or what todd and ted, the co-managers, ted welsher and todd combs by, but he told them a long time ago, nobody would ever believe if they were buying something -- when they ramp up on a big purchase it takes them six months or so to do that. microsoft is out of bounds because of his friendship with bill gates. >> he also has some views -- >> can i follow up on that >> go ahead, roger. >> a really important point becky just made there. from warren buffett's perspective, the technology is a sizzle, designed to appeal to our emotions but fundamentally, these are massive market dominant companies with market shares that are the envy of

market leaders in any industry and if you just follow them on your basic wall street investment metrics, you're going to do really, really well. the technology piece of it is something that from this point of view, relative to faang stocks at least you can largely ignore. >> becky, he had some thoughts on tech regulation, as it applied to privacy and facebook. you said congress is only beginning to scratch the surface. we're in the early stages on this i wonder if that is also forming his theersz around apple. >> yeah. he said that he's not entirely sure where this is all headed but thinks it's important enough, these issues when it comes to facebook, in particular, and how they may or may not have influenced elections in the past, that he thinks it will eventually pick up traction. i'm not sure how he thinks that plays out when it comes to apple or if it does at all he was particularly focused on facebook and some of the things

he has seen there. as you know, what happens once washington digs in is kind of anybody's guess on these issues. we did have bill gates on this morning as well. i think he was a little less concerned about what that regulation might mean. not only from the united states but also for europe. big companies have known about this, particularly for europe and new regulations coming into play this month, big companies like a facebook already knew about this coming in and that they would be well prepared for it his concern was that it would be much tougher small players to get in on this akin to the big banks. it was okay for the big banks because they were able to employ people through that regulatory red tape it made it tougher for smaller banks to deal with the regulations. the small companies won't be able to compete. >> that's right up your alley, roger. right? >> i think becky's analysis is

right on target, the bill gates analysis regulation in europe favors the big companies. they're actually not going to comply with the spirit of the regulation at all. i don't think consumer privacy is going to improve much but they'll have a much easier time complying with the letter of the lawyer law. >> becky, thanks to you as always good work this morning. >> thanks, guys. >> and this weekend. becky quick in omaha roger will stick around as we sit down with satya nadella. exclusive home to the world's largest searchable video collection of buffett, business, investing, money and life in general, buffett.cnbc.com for more a herculean effort we've been working on for a long time. >> i was pleasantly surprised to find it over the weekend and couldn't take my eyes off of it. be sure to look for that. when we come back, satya

nadella. what he has to say about tracking you on the internet and competing with azoman and google "squawk alley" is back after this then you turn 40 and everything goes. tell me about it. you know, it's made me think, i'm closer to my retirement days than i am my college days. hm. i'm thinking... will i have enough? should i change something? well, you're asking the right questions. i just want to know, am i gonna be okay? i know people who specialize in "am i going to be okay." i like that. you may need glasses though. yeah. schedule a complimentary goal planning session today with td ameritrade.

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basically allow certain companies to follow you around digitally. yes, you have the opportunity to opt out, using certain browsers or certain browsers settings but generally speaking the tradeoff is you get to use this for free. we get to follow and target. is there the possibility that that bargain is not going to work anymore >> it's a great question in fact, if anything, i feel at microsoft we've done a lot to make sure that our business model is fundamentally aligned with our customers and their preference what i mean by that is that we do have some ad-supported businesses, but we have subscripti subscriptions, whether it's for individuals or organizations and the predominant business model of this company is all about making sure that the data and any surplus that gets created out of our data, like ai, is to benefit the user, not us we want to be a pure software

company that through subscriptions helps every organization, and every individual get more out of their data, more out of their time that, to me, i think, is going where the world is going i think people are going to put more value on their data, even individual consumers are going to wake up to the fact that there's nothing free and so it's a choice it's not to say that there isn't room for someone to say yeah, this is a good trade where i'm using a free service in exchange for some data, but there's nothing free about it. >> is there a plan b for bing, for outlook, et cetera, that says if we get to the point where tracking is something that there's a backlash against, we have a plan for that >> absolutely. in fact, in a lot of these things -- in search, in particular, we've taken great pains that it's only ads that are driven on intent, part of the results page we don't take that data, use it elsewhere. we don't have any targeting business that is at large. we are very, very conscious of

those choices we made to make sure that the product we create are all about users interest, first and foremost. >> on cloud you sat down four years ago -- if you're not already spending a lot of capital on the order of $4 or $5 billion each year. >> which has increased. >> it doesn't go down, right probably it's a little too late to enter the market. you went on to say there are at least two players like that, amazon and google in particular, but we are one of the three in that category. update me. how does the competitive field look is it still the three? >> the capital investment is one part of it clearly, i think, amazon and us, when it comes to platform is number one and number two. and each quarter you all track us on that progress. and google is also in there and, you know, obviously have a lot

of money and capital and are investing a lot of their time. >> they're starting to show some numbers. >> and so to me, what i think is going to be important here is increasingly trust what i mean by that is it's not just about capital amongst the three of us, who is most -- think about -- talking to a ceo of an industrial company, ceo of a health care company, financial services company -- >> grocery company. >> yeah, good example. i think it's going to come down to trust trust not just in the technology, the ethics around ai, privacy, squurecurity, all matters. trust in business model where that alignment of your interests as a customer and the interests of the provider are fully aligned. i say what do you think, what do you say and what do you do are

in alignment. >> reading between the lines here i hear stories about retailers coming to microsoft, maybe even grocery, because amazon is in grocery with whole foods, retailers are looking over their shoulder wondering, amazon has a good platform. at the same time rrks they going to come at the core of my business model >> not just amazon either. you have to remember, amazon and google are fantastic at transactions it's not just that google is somehow more friendly to retailers. they have a nice two-sided market they can subsidize one to advantage the other. by the way, the advertising business is so funky it's sort of second priced auction. i've never seen business models where there's more demand, higher prices. i feel like any consumer should think about how that's going to

work out in the long run long-run business model trust is going to be so important. >> back with us to react, roger mcnamee. satya nadella is empathetic but has a mean jab, too, when it comes to these cloud issues. what's your reaction to his take on the dynamics between microsoft, google and amazon and how trust is going to play with customers going forward? >> first of all, i really am impressed with what satya has done as ceo of microsoft you know, it was a really hard situation that microsoft was in. he has broken them out of that what's going on in cloud, in particular, is an example of that i think being number three in a highly sensualized market like cloud is a difficult place to be, but i think he -- >> they are two, google is maybe

three. >> well, i think google makes it three. i look at this and go when you're up against google and amazon every day and you're microsoft, i think the trust thing is a real advantage. i like the fact that he's emphasizing that i like the fact that this company is primarily in the product business, in the subscription business, does give it great advantages. one of the things i like about his strategy is that he has basically navigated this to make microsoft not seem like an intimidating business model. what a change from 10 or 15 years ago. >> but is it working do you buy it? people will be skeptical they've got bing, outlook.com. aren't they collecting my data, too? are they really going to be able to make a case that people are going to believe around trust or do you think they're there already? >> my simple way of looking at it, there's one simple strategy

that he believes stock is where it is but relative to customers, people are looking at this as the land of the blind. if they have one eye and could see a little bit, microsoft is -- are they going to be at least a little bit better? and i think you're raising really, really important points. i think until microsoft has been caught doing something really bad with data, they have a huge advantage. because everyone else -- actually, this isn't really true of amazon so much. the bad stuff at amazon is largely internal relative to google in particular, which i think is microsoft across several markets, the big competitor, google clearly has used consumer data aggressively. as a result, it gives microsoft an angle i guess what i'm saying, jon, i'm not sure if this is real or not but he should push it,

especially right now the halo effects and runoff from facebook are really causing consumers and businesses to ask that question in a way they never did before i do think that message has a salience it never had before. >> roger, artificial intelligence is a big battleground on top of cloud these days microsoft, we're going to hear a bit more from satya nadella later in the hour. definitely trying to compete in that space in a way that amazon has been as well what do you think will determine who comes out on top, especially when it comes to developers? >> it's a hard question to answer ai is not one category but, in fact, is going to turn out -- at least in the early days -- to be many different products, targeting different use cases. so, imagine similar technology like the microprocessor, but applied to many categories like

computers, video games, smart phones if i'm right with that hypothesis, there's room for a lot of winners out of that clearly facebook and google have one strategy, advertising face, user manipulation strategy amazon will have a very different one. they're looking at purchase intent and retail as a core part that have activity microsoft can have a third one i don't know how this is going to turn out. but my hypot hechlt sis is that they'll all find some level of success. >> john, i'n, i've got a questir you. >> okay. >> given this interview and rare opportunity to sit down with satya nadella and pick his brain about the future of microsoft, one thing i see, covering industrial companies, the big focus on the cloud, the industrial internet and the push there, microsoft has been on the ground level in terms of offering those services to those types of companies

how much of this is playing into those opportunities? >> a lot of it is, morgan. and what we're seeing from mi o microsoft and what we'll continue to see as this conference plays out is not charging a lot for software upfront. it's based on subscription and seating an eecosystem. i mean planting and waiting overtime microsoft has come out with something called azure sphere. part of the idea is they'll put chip designs out and put them out basically for free people who build the chips will have to pay a little extra to build the technology that will allow for security that calls back to azure cloud so, this chip will be able to call to azure cloud. then you have to pay for microsoft's cloud service. to get the design, the capability built in, you didn't have to pay. they're seeding out there, something for free they're confident they'll

eventually get paid back on the other end. >> this is key when you look at the potential government contracts coming down the pipe, the jedi competition everybody seems to be focused on or other opportunities. >> it could, indeed, be. certainly for these larger company sbts internet of things, spreading sensors everywhere, you don't want to pay a ton for that upfront maybe if you decide to turn it on later. >> roger, thank you for joining us for that discussion on satya and microsoft. >> great interview, jon. coming up, we have more to get to stay with us for exclusive comments from microsoft ceo satya nadella. dow is up for the third straight day led by cerllatpiar we'll be right back.

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welcome back to "squawk alley. microsoft artificial

intelligence, releasing tools to developers for building an ai. and one example, there's going to be a qualcomm camera capable of running an image classified in a container, a smart camera with artificial intelligence on board, to be able to do things with drones, et cetera, with that listen to satya nadella microsoft ceo, talking about the importance of ai going forward. >> first of all, the world that we are entering -- we're in the midst of this classification think about it the computing fabric is getting more distributed and more ubiqutous. you have more power in a car perhaps than even a data center a few years ago. you have a microcontroller with this azure sphere we recently announced. every microcontroller out there in your fridge, in any drill is

going to have computer power every factory is going to have millions and millions of sensors. >> amazon is buying intelligent doorbells. >> that's right, cameras in fact, one of the announcements at build will be a qualcomm camera capable of running an image classified on a container. in the wild you could start recognizing objects or dgi drone. that will be capable of running, again, the azure edge so it can detect any faults in an oil pipeline so compute something becoming ubiquitous once you have that many, what do you do you do ai on it. large amounts of data using all this compute power to give yourself, in whatever app, in whatever field that predictive power, that analytical power, that capability to automate things. >> he makes the case that it's

still very early in cloud, certainly in ai and is trying to build, piece by piece, this argument that microsoft should be a go-to player versus amazon, google, ibm, oracle. you name it. >> that's fascinating. stocks up 1.5% more of your interview with satya nadella coming up. spacex founding member jim cantrell will join us. how he's competing with the big dogs by building cheaper rockets. a look at the major averages at this hour, nearing their best levels in two weeks, dow up 172, s&p up almost 14 points and the nasdaq is up 67. more "squawk alley" after this

good morning once again, everybody. i'm sue herera the foreign ministers of france and germany say they will continue to uphold the nuclear deal with iran regardless of the upcoming u.s. decision on whether or not to leave it at a news conference in berlin, france, germany and britain are committed to continue that agreement. ahead of next week's opening in which the u.s. recognizes jerusalem as israel's capital. the signs were in english,

hebrew and arabic. aly raisman says that usa gymnastics still hasn't done enough. >> it's ridiculous there hasn't been an investigation. but i think that, you know, they had all the board members resign, but if the new -- who is picking the new board members? i know they haven't asked the survivors to help out. >> you are up-to-date. that's the news update this hour let's get back to "squawk alley. morgan, back to you. >> sue, thank you. sue herera at hq. to seema mody now with european close seema? >> hey, morgan building on their first winning streak since 2015, primarily driven by a weaker currency, euro at its lowest level since december against the u.s. dollar the stock market is closed today for a banking holiday.

stocks in a move in a bid to diversify its mix, northwestle last year bought a majority stake in blue bottle shares up higher today but roar around 7% for the year pivot to transports. air france klm are down sharply after its ceo pledged to resign after labor unrests at the company. air france workers are on strike the 14th day this year in a dispute over pay the airline says 15% of its flights would be canceled today. the french government has rejected a bailout of the carrier, struggling to contain costs. really a decline in europe, down 46% year to date, lower today as well in politics, uk foreign secretary johnson is scheduled to meet with u.s. vice president mike pence this afternoon at the white house. johnson is urging the trump administration not to scrap the iranian nuclear deal today's "new york times" op-ed

johnson says every available alternative is worse back to you. >> that deadline, of course, approaching this weekend seema, thank you "squawk alley" continues in a moment rick santelli, what are you watching today >> treasury yields are pretty snug to the top of the range we'll consider volatility and even compare equity volatility to fixed income votitylali some of the results may be a bit surprising, after the break. your company is constantly evolving. and the decisions you make have far reaching implications. the right relationship with a corporate bank who understands your industry and your world can help you make well informed choices and stay ahead of opportunities. pnc brings you the resources of one of the nation's largest banks, and a local approach with a focus on customized insights. so you and your company are ready for today. anyone can get you ready, holiday inn express gets you the readiest. because ready gives a pep talk. showtime! but the readiest gives a pep rally.

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half time report top of the hour is this the restart of the rally? stocks are higher again today. we're debating whether a spring takeoff is in the cards. warren buffett talking markets and the big bank stock he's still big on. and brothers njarian have an unusual dose activity. that is all today. >> thank you, scott. over to rick santelli. a combined chart comparing cbo treasury volatility intext to the equity volatility index you'll see what i mean fact of the matter is that both became very volatile scaling is different different voluatility in a fixed income market versus treasuries. what i really want you to pay attention to is that equity

volatility in that chart is very low. that low volatility gave birth to a whole chapter, if not book of strategies to basically -- and i'm over simplifying -- to pack your positions bigger and tighter over periods of volatility that ended it hasn't really ever gotten back. we haven't overtaken the price ground volatility shock and many of those strategies haven't been reimplemented to the extent they were the next chart is more of a chart only of treasury volatility the reason i bring that up is even though they're very similar, there say downward bias to that. anyone who remembers equity trading in 2017 remembers it left huge telltale footprints. lots of price appreciation with very few retracements of any magnitude, but the volatility low, as i said, positions grew and that was reflected in price. in treasuries, it's a bit of a different scenario we have lots of consolidation.

but the volatility doesn't seem to be the same there's very few strategies, of course, predicated, especially considering central bankers have a large presence in the space. the point of my discussion is that just the way volatility was a fundamental equity trades and once that fingerprint changed, if your position changed, you benefited greatly. the same could be said for treasuries, but it hasn't changed yet. we have few retracements, establish high yields. for much of 2018, what we've seen is that no matter what's going on in other spaces, equities, i.t., fixed income market seems to rise up to certain levels and move sideways with slight drifts and then reinsert itself. the chapter we find ourselves in now is in such a tight range to the new high of 303, also has historical significance. the fact that we're in the middle through a period of fed

meetings and employment report tells us how important this is what's more important is which way it breaks out. carl and the gang, back to you. >> rick, thank you rick santelli in chicago when we come back, one of the founding members of spacex will join us here at post nine how he's competing with bezos in the rocket industry. mom you called?

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alley. today's launch of elon musk and spacex rocket, warnings that it could put lives at risk. for more on the space race, we're joined by the ceo of the company vector, also a spacex founding member. thanks for coming in today. >> a pleasure to be here. >> i want to start with vector you are a founding member of spacex but you're not necessarily targeting the same market as spacex or the other rocket companies. >> correct. >> what part of the market are you looking at >> the micro sat part of the market anywhere from the size of a loaf of bread to an hp printer. they're being built by hundreds a year and projections is that they'll be built by thousands a year five years down the road. that's not the market that

spacex or bezos is in. they're in the large satellites and space transportation market. >> we could see the market grow up 10,000 the next five years. to put that in perspective, thef satellites orbiting the earth right now is 1800. this is a huge growth opportunity here what is your business model to tackle that? >> rather than using reusability, which makes sense for the larger rockets, is mass production we prove this out with a model-t, 100 years ago, if you mass produce something, it gets cheaper and more reliable. we're looking to become more like the airline transportation model and emulate that in terms of efficiency and keep the cost down and the flight rates up >> when you talk about mass manufacturing rockets, what does that look like i have heard it compared to the auto industry, for example >> we hired our first vp of manufacturing out of bmw we're bringing in the automobile

expertise. i have a background in automotive manufacturing we can put these on an assembly line so we're looking at that discipline of being a manufacturer in flight operations company rather than making new rockets every fifth flight, which has been the tradition in our business. >> does orbit have a limited finite capacity for micro-sats, and how long would it take to get there? >> in the absolute sense, it's finite in the practical sense, no there's a lot of space up there above the earth, and there are certain orbits that are crowded that you have minuscule probability of having a collision, and we have heard about those. but the majority of the orbits are so low that the atmosphere will bring them back in. most of what vector will launch is in that regime wrp in a few years, the earth's atmosphere will reclaim the satellite that's good for our business, because we get to launch replacements like iphones that get tossed out every few years, that's where

the satellite business is going. >> you have a background in autos, engineering manufacturing. you have known elon musk for quite a while. he's in the weeds with model-3 production got some questions on it on the earnings call recently he didn't want to answer was that an elon musk you recognize? >> you know, he's a very unusual person, and i think he stands out amongst any of the people i have ever met as being one of the most intelligent people i have ever met. i know that always elon has a plan, no matter what he's doing, he has a plan for something. so yeah, he doesn't like to share his dirty laundry. none of us do. whatever it is he didn't want to discuss, he probably had his reason it's a different business being an automotive manufacturer than in the rocket business the fact he can run two of these companies at the same time is astounding to me i don't think i would have the band width to do it. >> do you think investors last week were overreacting to his behavior on the tesla earnings call >> i do. you know, i think the man did it

in sort of jest. and he doesn't have a tolerance for fools. and i think he saw many of these questions as being fooled. i know he said they were cell side to analysts setting him up, and he tends to be a little cynical. i'm not sure i would behave that way, but that's classic elon musk >> i want to get your thoughts on the capitol flowing into the space sector there's more angel vufunding, v funding, and then folks like jeff bezos who are almost completely self-funding blue origin you have emonlove who seeps to be able to task the capital markets. how do you compete for those dollars and what do you see the investing trendsforward. >> overall, over a billion dollars in venture money was put into the space investment side last year, and we expect that to continue going forward it's a strong investment thesis because the economy in space is

underdevelops. it's been traditionally nationstate dominated industry, and typically means no industry. could you think of the government producing iphones that's kind of laughable essentially, that's what has been happening until now the entrepreneurs are stepping in what we'll see is the space economy continue to expand it's about $300 billion a year right now. the morgan stanley predicts $1.5 trillion within ten years. i think we'll see that we think that vector being the sort of the elevator of new york city to the space industry will actually help that industry grow and they need the rockets to get there. so we're really the transportation base for them >> we appreciate you coming in and joining us here at post 9. we're looking forward to your orbit launch expected later this year >> we're thinking probably september this year. >> jim cantrell of vector, thank you. >> thank you >> and speaking of space, when we come back, what facebook's newly released ambitions mean

beyond the clouds. "squawk alley" will be right back your company is constantly evolving.

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business in outer space. julia boorstin is in los angeles with the details >> morgan, an experimental satellite that can help reef and connect almost 4 billion people around the world without internet access. that may be the long-term goal of this filing with the federal communications commission last week it explains the plans for a multimillion dollar satellite called athena from point view tech, which appears to be a subsidiary of facebook this according to a trade publication which followed a paper trail connecting point view to facebook it says it's developing technology to deliver data ten times faster than spacex's star link internet satellites facebook wouldn't comment on whether point view is a subsidiary, but if it is, this would not be the first time the social media giant has worked to expand internet access through satellites they worked with a satellite company, but that satellite was on a spacex rocket that exploded at launch two years ago.

facebook has also been working to beam internet connectivity down from solar powered drones that will fly for up to three months at a time, and facebook's working on a range of technologies to bring high-speed internet connectivity to dense urban areas as well as rural and underdeveloped regions now, facebook says connecting the world creates opportunities to share knowledge and strengthen communities but of course, it also means that more people can spend more time using facebook and of course generating ad revenue back over to you >> all right, julia, thank you very much for that >> meanwhile, watching the markets today. best three-day run for the major averages or at least for the dow since early april. s&p has gone positive for the year, back above the 50-day for the first time since late april, and apple, guys, best six-day session, you have to get back to 2009 here, yeah, about six or seven years since we have seen something like that. >> last time i looked, microsoft was positive as well ceo satya nadella on stage right

now at the build developer conference in seattle. be sure to check online, cnbc.com, for my full interview, sitdown with him about microsoft's strategy and more. he even talks about tech's impact on gentrification also on my podcast right now, full interview >> great stuff thank you. >> let's get to the judge and the half >> welcome to "the halftime report." i'm scott wapner our top trade this hour, the rebear rebooted rally are stocks now poised for another liftoff? with us, joe terranova, josh brown, steve weisz also kevin o'leary, the chairman of oshares etfs. stocks are higher yet again today. this after they posted their best day in weeks on friday. josh, boy -- >> hey