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good morning it is 8:00 a.m. at spacex headquarters in california it is 11:00 a.m. on wall street as "squawk alley" is live. ♪ good morning welcome to "squawk alley." i'm carl quintanilla with jon fortt at post nine at the new york stock exchange. morgan is in hawthorne, california, at spacex headquarters where she has a lot coming up this hour. morgan, good morning. >> reporter: carl, that's right. good morning

spacex is number one on the cnbc disrupter list unveiled today. it has made the cut for this list every year. this marks the second time, actually, that it has taken the top spot i sat down exclusively with spacex's coo and president gwynn shotwell for an interview that was, to say the least, wide ranging. take a listen. >> i really want space exploration to be what you see like in the tv shows, fireflies, gallactica, star wars. mars is a stepping stone it's a big stepping stone, by the way. >> what do you think those other people would be friendly or foe? what do you envision >> you always envision what you see on tv or the movies. there will be some friendly and

some not friendly. i still think it's important for us to find them. >> reporter: and, guys, i think that's one of the most stunning things about speaking with shotwell for her, it's just a given it's commonplace knowledge that, of course, spacex and humanity at large will travel to mars and beyond but, of course, we also spoke at length about spacex's businesses, the launch business. also the manufacturing process, as we toured the production line of spacex's rocket factory which is right behind me we also talked about that massive new satellite consolation and what it's like to work for elon musk. we have that coming up later on in the show. guys, investors, in particular, will want to tune into this. she disclosed some stuff, shared some information about this company that i don't think the public has ever heard before. >> morgan brennan, we'll have a lot more from you in just a bit. meanwhile, president trump walking back threats to put

tariffs on chien chooi knees goods and reportedly nearing a deal to lifting on zte. >> telecom giant find and make changes to its board and in turn have the ability to buy supplies from u.s. manufacturers restored a broader trade deal would buy more u.s. crops and commodities and lower auto tariffs the treasury secretary steven mnuchin was on the defensive on capitol hill about his backtracking on a security issue, like zte, in order to secure a short-term trade win. >> whatever changes or decisions that are made in commerce, we'll deal with the national security issues national security issues are being addressed. and that is of paramount importance to the president.

this was not a quid pro quo or anything else. this was merely that president xi asked president trump to look into this, which he has done. >> outside the hearing room about mnuchin's response, west virginia democrat said joe manchin hopes that the deal is blocked, revealing tie-ups in u.s. foreign businesses. and the banking committee is considering a bill that would significantly expand the number of deals that would fall into such a review. of course, that is a committee led by treasury, so it would still fall to that department and the secretary to decide ultimately what would happen but certainly an interesting development and the treasury secretary on the defensive this morning. jon? >> sure is kayla, thank you we'll stay with china and its decision to cut tariffs on auto imports from 25% to 15%, another move to apparently ease

trade tensions gm vice chair and cnbc contributor bob lutz bob, good morning. >> good morning. >> so, your take on the trump administration's approach to these negotiations you mentioned that they tend to go big and perhaps even unreasonable and then end up some place a lot more, i don't know, conventional, perhaps. would it have taken place regardless >> it's classic prop if you read his book the art of the deal, he has run his whole life that way. that's how he got a successful new deal with nato it's how he got south korea to double the number of u.s. imports that are permitted and so forth i think it's just going from 25% to 15% is a good start

i don't think it's going to have any huge, immediate impact on u.s. exports because most of the u.s. producers are producing the bulk of their cars in china already. but part of that was because of 25% tariff i think 15% is a good start. does this mean it's a huge win no i think it's a good halfway step when you consider that our automotive tariffs in the united states are 2.5%. they've got a way to go. it is a good start it shows that trump's tough stand on achieving a balance in trade to where the u.s. is not disadvantaged, it's a sound strategy and will help re-create industrial jobs in the united states. >> and what about nafta? we're looking forward to seeing what kinds of changes might come out of that, whether they're able to get them done in the near term. what's the most important change

that you would like and expect to see >> you know what i'm not informed on the details of nafta because i'm no longer active and i'm not following it that closely but everybody agrees, even those dealing with nafta, that it was a good agreement, having a north korean trading block, it helps everybody. but this is like over a decade since its inception. and, meantime, a lot of flaws have come up and those need to be addressed i think everybody agrees that nafta needs renegotiation and adjustment to make the system work for everybody and because of trump's usual negotiating style he says we're going to get rid of nafta, that gets everybody working on it. and, i mean, i am convinced to the point of absolute certainty

that within a relatively short time we'll have an agreement with nafta it's not going to be blown up and the resulting agreement will be much more balanced and less disadvantageous to the u.s. >> so, bob, do you think that negotiating style from the president is necessary or just sustainable? >> i think it's -- i don't know if there's another negotiation -- negotiating style that works as well as this one is working for president trump and it's worked for him all his life it's worked for him commercially it's one of the reasons for his very substantial net worth and it has worked so far in his presidency it's just -- and let's face it our presidents from george bush -- first we had bill clinton, then george bush and obama. and everybody keeps talking

about trade and talking about north korea, the nuclear program. and it's talk, talk, talk and nothing ever gets done because the normal political process is, let's face it, ineffective. so now we have a president who uses the leverage that the united states has and he wields the power and gets stuff done. up till now, everything he has tackled has basically been successful. >> none of the stuff we're talking about has actually gotten done yet. but we will see how this works out, bob thank you. bob lutz. >> watching the markets here, as we're down about 26 points on the dow, s&p hanging on to a gain we do have oil at a fresh high since 2014 7274 chief market strategist at fitzgerald you're watching to see if the

ten-year holds here. >> yes. >> critical levels on energy markets handling all these things in stride. >> yes yesterday we had a great move upwards. chinese trade tensions on hold certainly help we had a pretty big move upwards to 3 '111. we're kind of backtracking a bit down to 3.05, 3.06 levels. we were looking at 3.05, we'll watch in the next couple of weeks if that holds. financials, we've not seen them participate nicely in that upward move. if it does hold and we get through the next few weeks, the next barrier is 3.25 so far orderly move upwards but we are watching to see at some point that does start to bite. >> south korean president at the white house. north korean summit we think may happen does that mean -- that calendar date of june 12th mean we're

range bound until then >> i don't think so. a lot of dynamics here treasury option very closely, about $230 billion there's going to be a lot more net treasury issuance this year. because the fed is not buying bonds and also because we're issuing a lot more to fund a very large deficit $800 billion this year, $1 trillion next year when you layer on top of that that the ecb is pulling back on its bond-buying program, along bund yields to rise. i'm concerned about the long end of the u.s. curve but the offset is if there is a lot of equity market volatility because of higher rates, that is a rate scare or tantrum of some sort, obviously capital will flow back into the market and my target remains 3.25 on tens for the remainder of the year. >> our nerves are deadened now. >> they really are. >> it's a lot to scare us.

>> it's quite surprising the rotation of the small caps has been particularly surprising i got bearish in small caps a week ago, wrongly. you had money coming out and rotating back into u.s. equities why did money come out of en rates. and people seem to be ignoring that risk. en drives global growth. i'm not sure how the synchronized global growth story can be maintained the rest of the year i'm not sure that that's sustainable. >> look what's happened in a week, right? >> yeah. you know what? we think the dollar, near term, has more upward movement what we've been seeing globally is the u.s. is actually -- economic indicators are plateauing, but europe and global economic indicators are setting off quite a bit. that's what's causing the dollar strength people are noticing this trend over the short term, yes, the dollar may continue to rise. long-term basis, the dollar is

very correlated to twin deficits rising trade deficit and certainly a rising fiscal deficit. we see longer term weakness in the dollar obviously typically bodes well for en the long-term story remains generally intact with a growing middle class, developing economy generally. >> i would take the other side of that. >> sounds like it. >> i would say that rate differentials have mattered a lot more to emerging markets of late and the idea that we've got this regime shift where growth is going to be more important, historically it's a tough argument to make and i think em growth has been so dependent on rates being low for as long as they have, it's going to be tough for those fundamental factors to take over. >> you know, i think you have to be selective in the end. not all boats will rise at the same time. you look at some of the more developed economies, china, india. we see big potential there particularly opening up the

chinese economy. that domestic demand alone could drive a lot of growth. >> we're not part of that. >> 15% auto so far they need to go further but yeah. >> mona, peter, good stuff. >> thank you. >> interesting month we're having. >> absolutely. we have a big show coming up, as we said earlier, rare and exclusive look inside spacex that you'll get here only on cnbc you don't want to miss our coverage with gwynne shotwell. pure storagetos ardo scke wn after results. "squawk alley" is back after a short break. whoooo.

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one more way comcast is working to fit into your life, not the other way around. adobe is buying e-commerce from magenta for $1.7 billion. coca cola, warner brothers music and canon. separately adobe also announcing an $8 billion buyback program. check out shares of spotify, slipping on the back of that adobe deal news. magento commerce goes head to head with shopify. it sits alongside its creative cloud, photoshop until now, to me, the experience cloud was sort of nebulous.

this will allow adobe to close that loop more than ever you market a site and you can see how it monetizes the tools for e-commerce used to be part of ebay. now in adobe's hands they're a full-fledged enterprise player now going up against oracle. i think people had doubts when they first did this cloud thing. nobody is doubting adobe anymore. >> no and the $8 billion buyback on top of that, to solidify the solid action of almost a full percent to 240 a one-year chart, it barely ever threatens the 50-day average. >> last time we had him on "squawk alley" i told him you do a billion plus acquisition around now you got anything in the plank? he wouldn't give me any.

looking to have him back on now. how did elon musk's company spacex beat boeing to become a $28 billion juggernaut exclusive inside look at the company as we continue to speak with the president and coo plus, is it safe to visit hawaii, despite the volcano eruption ceo of hawaiian airlines joins us as the natural disaster takes a massive toll on the travel industry with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today.

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>>lava from hawaii's kilauea volcano continues to flow into the ocean as big plumes of toxic-laced clouds spread across parts of the big island. for more on what impact it may be having on travel, joining us now is ceo of hawaiian airlines.

thanks for getting up early to talk with us today thankfully the infrastructure hasn't been affected because it's going to remote areas but tourism is a completely different story. is it having an impact >> well, really, tourism hasn't been affected very much at all the risk zone that's affected is an isolated area about ten square miles in the southeastern part of the big island of hawaii the big island is about 4,000 square miles, to put that in perspective. and the vast majority of the tourism infrastructure in the state is unaffected by this and open for business. so, while it's been, you know, certainly a devastating and tragic event for the people living in the area of the big island, most of the island were rell toughly unaffected by the activity. >> peter, the rest of us who don't live in hawaii or

notoriously are bad at hawaii geography, i'm wondering are you having to communicate differently, be proactive in any way to reassure people that it is safe, that it is fine are people calling in more to ask about their travel plans that they may have already booked >> yeah. there's certainly some of that going on you know, people see the incredible images that have been on the television and, you know, we've had this particular upswing in activity of the volcano going on the last couple of weeks this is a volcano that has been continuously erupting for over 35 years it's actually a tourism attraction in its own right at most times but we have had some calls. there were people who were concerned. but even on the big island, the airport in kona is over 100 miles away from the affected area

hilo is the closest one to the volcano and that's 20 miles away we've had no operational disruption at either of the airports i'm sitting here today in honolulu, on an island that's about 250 miles away from where that activity is so, you know, honolulu, maui are well away from the activity. >> on a separate note, peter, just because we have you, there's the impact of whatever we might see from the volcanos but also we've got oil today above 80 there's the ongoing question of how many of your competitors want to expand internationally, specifically to mainland, hawaii roots for instance how do you see both the energy trade and fair competition >> i think the industry, overall, is a lot more resilient than it was a number of years ago. certainly at hawaiian airlines we've built a much stronger

business over the last couple of decades and are poised for competition. we've had an upswing in capacity between the mainland and hawaii this year and our business continues to perform well through the first quarter. and we've got a strong outlook for the second quarter and for the rest of the year so, i always like oil prices to be lower and that makes -- creates an ability for our fares to be even more affordable for all of our guests but we're not at a point where the level of oil is, you know, really a significant threat to the profitability of our business. >> that's something we'll keep an eye on, of course, as we watch the sector in relative health for the first time the last couple of years in a long time peter, thanks again. good to talk to you. peter ingram joining us from honolulu we're a couple of minutes away from markets closing in europe let's get to seema mody back at hq hey, seema.

>> a positive session in europe. the london stock market hitting a fresh record high as we look at the pound depreciating. also helping are these trade tensions easing, chinese officials making a large cut to import tariffs in cars and car parts, giving a nice lift to bmw, daimler and fiat chrysler the prime minister italian president would have to approve the nomination conte is a little-known law professor who has hardly any political experience brief periods of study at yale, cambridge and nyu. published reports are casting doubt on his academic credentials. meantime market reaction italian ten-career off its highs of the day it's been a volatile trading session. stocks have been climbing on

these concerns a populist-led government would raise levels. >> thank you for that. the company that could take us to mars yesterday elon musk posted this picture of spacex's new spacecraft he wants to use it for the first manned space mission we'll take you inside spacex headquarters for a rare look only here on cnbc. take a look at the dow trying to regain positivivity. down 12. it will be up for a 12th time in 14 days.

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and i couldn't ask for a better partner. hi, everybody. i'm sue herrera. russia's parliament has a bill threatening to end cooperation with the u.s it lays out a wider range of restrictions for american businesses in russia and could freeze crucial exports to the u.s. and imports to russia from the u.s. and other countries french public service workers taking to the streets as part of a strike to protest the government plan to cut 120,000 jobs by the year 2022. it's the third strike since president macron came into office last may. the syrian military and police forces celebrate recapturing the last neighborhoods of damascus held by rebels and isis militants,

the first time the region has been under full government control since 2011 and some good news here. a new report says fewer americans are dying from cancer, rates dropping in adults and children as well as all racial and ethnic groups. there's also been progress in cancer prevention. that is the news update this hour you're up-to-date. carl, back to you. >> thank you very much, sue. spacexchl has upended the rocket industry, as you know, and managed to become one of the most valuable private companies in the process disrupter 50 list. morgan brennan got a rare and exclusive look inside the company. now a woman helping to carry out elon musk's vision, joining us from spacex headquarters in california hi again, morgan. >> hi, carl. good to see you. gwynne shotwell, coo of spacex says it's valued at $28 billion. i sat down with her for an

exclusive interview inside this building behind me this is spacex's rocket factory. it was a rare interview, covering everything from spacex's ambitious plans for human space travel to the business model that is enabling this company to carry out the vision is spacex profitable >> we are. we've had many years of profitability. the years that are financially rough for us are the years where we have issues. >> so issues like the explosion on the lauvennch pad in 2016? >> yes that made 2016 a tough year. 2015 as well. >> spacex is on the disrupter's list you've had incredible past year of major milestones, broken a lot of records but also has been that fast turn around after that explosion in 2016 how were you able to do that so quickly? >> that was a really hard problem to unwind, the issue we

suffered on september 1, 2016. it gave production teams time to catch up, actually it's kind of a horrifying way of catching up on production, to basically not be flying because of that issue. but it did give us time to catch up it also gave us time on the engineering side to continue designing the upgrades, resulting in the last launch that we had. the first block five launch. >> i want to talk about one of your emerging revenue streams, little more near term. the satellites you recently won fcc approval for broadband satellites how does that help to fund some of these longer term plans >> the market size for launches is dramatically less than telecommunications so that's a nice way to make additional revenue in addition it's very complimentary to the work we're doing right now. dragon is a very sophisticated satellite and we have our own launch capabilities.

i think we'll be able to -- assuming we get the physics right, as well as the business right, i think we'll be able to replace a constellation that will be quite successful. >> the broadband capability could be used for tesla. >> it could be used for tesla just like tesla battery technology for falcon 9 and dragon as well yeah, the companies are not joined but we do share technologies and capabilities wherever we can. in fact, the boring company could be the way that we house people on mars, dig a tunnel for folks. >> really? >> i think so. makes sense. >> one of the other things that has been brought up is the technology there's cross policy -- pollenation. is there >> we will produce about 14 first stages and roughly 30 second stages. tesla is producing thousands of

cars a week. there's a lot we could learn from tesla for sure. >> so they're adjusting for cross pollenation and all of these companies are led by elon musk, what's it like to work for elon musk? >> there's been a lot of that in the press lately i love working for elon. he's a great boss, he's funny. he's really fair, almost to a fault. he works very hard he's an inspirational leader and inspirational boss i want to work hard to do whatever it is i can to help him. >> mapping out some of these charges and technologies, how much time does he spend with you? >> he spends roughly half time on spacex and half time on tesla, depending on what's happening in either company. >> you've done nine rocket launches so far this year. you have another one scheduled for this week. how should we think about that launch cadence through the rest

of the year and beyond >> the rest of this year we're flying at least a few time this is month overall between 24 and 28 times we'll fly this year. next year will be a slight slowdown the market has decreased a little bit you won't see as many launches as you see in 2018 probably roughly on the same order as 2017. >> why is it slowing down next year >> geotelecommunications industry has flown between 18 and 24 satellites a year last year very few satellites were ordered in 2017 that makes 2019, two years later, a lower cadence year. buyers have launched tend to buy about two years in advance. >> longer term both you and elon have expressed this vision to see rocket launches that are as regular as airliner flights. when does that happen? >> obviously the market has to grow a bit we launched 18 times last year this year we'll launch under 30 serving the market and doing

probably 60% of the launches across the globe so, in order to lanch every day, you have to have a lot more launches and once we're flying people, that could actually be realize realized. >> so, guys, we spoke about that we also spoke about the new bfr, short for big f'ing rocket and will be the rocket to start carrying humans to mars. shotwell saying they're still on track for that process to begin happening in 2024. meantime, in this factory behind me, i did tour the production line spacex says it has the capability to produce one rocket engine per day and two of its workforce falcon 9 rockets per month. specifically the newest, most powerful version of falcon 9 known as block five. with the time i spent with shotwell, both in sitting down and touring the manufacturing

process, one of the things she really stressed is that it is not just about the innovation of the products themselves, the design of the products themselves but this is also a company innovating on the manufacturing line and adopting new processes and all of that goes towards the cost cutting that spacex has become so famous for as it has made space very exciting once again to the world. >> morgan, i get the reusable rockets part all this talk about mars, i don't know about you i don't want to go to mars i like it here i'm not sure you're the target audience. >> i don't know. who is the broadband satellites, though, very interesting and shotwell seemed to be talking about the size of the market for that. is that what we should expect, that all of these potential launches that spacex will be able to do in a potentially more cost-effective way, that will be their bread and butter

>> i think the satellites are a very big part. the satellite business and specifically the emerging broadband satellite business overall that a number of companies are looking to get into is expected to be a very high margin business it could be another revenue stream that helps to fund development of their bfr rockets to start doing these missions to mars, definitely sees it as an opportunity. in terms of going to mars, i'm on the fence i asked shotwell if she wanted to go to mars and she said she wasn't so sure she wanted to either she did say there's probably 10% of the population out there that have expressed interest so far in going and being on the forefront of colonizing that planet, that there is, in fact, demand out there and that is part of the reason they're, you know, building this new hardware and moving forward on this. >> 10% sounds high but maybe. >> wait till they hear about the

layover. it's quite a long flight. >> morgan, the thing that struck me, musk has taken pains saying he's sleeping at the factory floor, trying to get these bottle necks done for the three. yet she's saying he spends half his time at spacex. >> it was very interesting, those comments and that part of the interview was very interesting. i'm not so sure that that's necessarily the case, 50/50 right now, based on what she said the fact that in general, overall, that is how he is managing both these companies. very enlightening. there's been some of that speculation in the past. we haven't heard quite that much detail about what the management structures look like. >> amazing and obviously very rare look at spacex, morgan. we owe our thanks to you for that morgan brennan at spacex in hawthorne, california. a lot more to come. for the rest of the look at disrupter 50, let's get to julia

boorstin. >> good morning to you, carl the companies on the list more valuable together, worth nearly $360 billion. after spacex, number two on the list is uber with a valuation of nearly $70 billion ride-sharing giant moving up from 19 on last year's list under new ceo. pushing transportation and bikes with the bike company jump number three, airbnb with the 4.5 million listings, far more than just house rentals. offering a range of experiences as well as business travel and number four, another ride-sharing company with more than 25 million rides a day, twice as many as uber number five is lyft, claiming a third of the u.s. ride share market and number six is partnered with uber across southeast asia

pretty amazing for the top six in the ride-sharing space. number seven is 23 and me, the genetics company, testing for certain cancers. number eight, its revenue more than doubling, 34,000 new students took its courses and partnered with even more companies. rent the runway has not only expanded its dress rentals with over $100 million in rental and offers wardrobe descriptions as well and number ten is coin based crypto currency brokerage enabling merchants to use new digital currencies you can find the rest of our disrupter 50 list on cnbc.com. >> thank you very much, julia boorstin in san francisco. more "squawk alley" in a minute.

rick santelli, what are you watching today >> continuing to watch the relationship between our rates and european rates there's a big recal abrasiibratn going on

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i'm scott wapner lee cooperman, taking a.m. at the s.e.c. in an open letter we'll get his favorite stock

picks. and facebook ceo mark zuckerberg in the hot seat again. this time in europe. we'll take you there live, with that stock in a major turnaround since the data scandal erupted will anything change that today? we'll find out noon eastern on "the half time report. less than 15 away. >> see you then. thanks. still to come, we haven't done enough. that's just one of the things we're expecting to hear from facebook chief mark zuckerberg when he testifies before european parliament. we'll tell you what else to expect when "squawk alley" returns. ls you whether to wait or book your flight now. so you can be confident you're getting the best price. giddyup! kayak. search one and done.

>> despite today's dip on quarterly results, shares have more than doubled in the past 12 months charlie giancarlo is the ceo of pure storage and joins us now. charlie, good morning. >> good morning. >> so i really want to dig in on pure's prospects going forward a lot of conversation on the call about artificial intelligence and the way that is changing the demand for storage. the huge amount of it that's being kept by companies, the need for speed and flash, which you guys were on the forefront of how is a.i. affecting the demand for your model versus the old direct connect model of storage?

>> yeah, i have to tell you, the interest in a.i. by corporations is just off the charts i was on a recent road show with a few other players in artificial intelligence, and the level of interest we're getting from very senior execs, very large companies, was really off the charts and what it really means is companies have all kinds of data in their environments. it's being kept in like cold storage. what they really need to do is create an environment where that data can be used and analyzed and companies are more interested than ever in being able to make use of that data. pure is what enables that to happen at pure, we're able to keep the data hot, able to feed gpus and high speed application, a.i. environments at the speed they want that data, to be able to provide the intelligence that companies want to be able to make their businesses better >> so charlie, are you saying that some of that data that was kept on tape long ago, the data that you wouldn't normally access, is some of the data set

that a.i. needs to function well and therefore some of those older data sets, some of those that are accessed less frequently, will be -- are going to need to be accesses more frequently and you see that as part of your mark opportunity? >> you bet companies used to have what they called tiered storage. they would keep data hot for maybe a month or the quarter, but then they start putting it in lower cost but much slower systems. these days, people want access to data whether it was last week or last year or last decade. and in order to do that, the data needs to be kept hot. also, if you want to lack at trends and long term trends and data you have, whether it's on your sales or customers and so forth, and being able to mind that, you want to mine it for more than just a week or two so more and more data wants to be kept hot. >> tell me the impact of these mega scale cloud providers in the u.s. we have amazon, we have google, microsoft.

apple, facebook, certainly in that category. how should investors think about the ability of those huge players to keep your pricing leverage and your margin leverage from getting to a point where they would like to see it. do they eventually, do their dominance start to put downward pressure on pure's profitability? >> no, we're seeing exactly the opposite if you look at our gross margin, it's held very steady throughout our entire existence as a company. it's because we're able to make the best use of what's the most modern storage technologies, which is flash today, and maybe other things tomorrow. but our software is built from the ground up for this kind of solid state technology so actually, it's been very good for us, and if anything, what these hyperscalers have done is they have created architectures that now private companies want to use inside their own data centers. as they move to that, they move to much more modern storage technologies like pure >> all right charlie giancarlo from pure

storage. we're going to continue to watch you as well as others in this a.i. ecosystem thanks for joining us. >> thank you as we go to break, take a look at the russell 2000, set another record high today. for the fifth day in a row, before losing some steam dow meantime in a very tight range. down 28. lo13bew "squawk alley" continues in a moment ♪ feel that? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow.

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mark zuckerberg set to testify in front of european parliament to discuss data protection we're in brussels with more on what lawmakers there may want to know good morning >> yeah, good morning to you guys i'm standing right in front of the european parliament. this is the first time zuckerberg is going to appear on the continent since the cambridge analytica scandal broke. he had the hearing in front of u.s. lawmakers just six weeks ago. since then, the europeans have been pushing to have their own public hearing 2.7 million people on the continent were affected by the cambridge analytica scandal, so still a lot of questions going to be directed at mark zuckerberg a lot of angry people here have a lot of questions as to what

the company did and how they allowed this to happen and when they knew this was happening it's also happening at an interesting time for europe. we have new regulation coming into play on friday about data privacy and consumer protection laws a lot of companies are going to be forced to comply with these new set of laws that will force them to be transparent about how they collect data, store data, and delete data as well. we're expecting lawmakers to ask them a few questions if facebook is compliant with gdpr, and lots of anger from the community. >> it's going to be watched just as much in the u.s. as it is there, i'm sure. thank you very much for that >> nigel farage tweeted this morning, he's going to be keeping tabs and tweeting about what zuckerberg says we know european standards for privacy are different than american ones. >> in a way, this matters more because facebook already under scrutiny there gdpr already enforced, but wall street believes he dodged a

bullet here. the stock is back above where it was before the scandal >> quickly, got to get your take on micron and this idea, not just with the buyback, but the cycle is different now and permanently forever. i mean, that's what the bulls are arguing today. >> it fits into the story that we just heard from brussels. >> live picture of mark zuckerberg as he makes his way toward questioning later on today. >> that will wrap it up for us let's get over to the half all right, carl, thanks so much that's one of the stories we're following this hour. welcome to "the halftime report." let's begin with breaking news on several fronts. the president meeting at the white house with south korea's president moon, only weeks before the planned summit with the north korean dictator kim jong-un. facebook's ceo, mark zuckerberg, is in brussels at this moment. to face european regulators over that company's data scandal. you can see him making that walk in