a.m. on wall street and "squawk alley" is live ♪ ♪ good wednesday morning welcome to "squawk alley." i'm carl, with jon fortt and david faber sticking around for another hour and joining us from los angeles, robert, the founder and ceo of the hertvec group and investor on the hit series "shark tank. good to have you with us. >> good morning. >> let's get to facebook mark zuckerberg being criticized this morning by eu lawmakers over his lack of answers in

yesterday's testimony on cambridge analytica. after an hour of questions, the facebook answers timed out to a total of less than ten minutes an zuckerberg joins other silicon valley leaders at french president emanuel macron's tech summit interesting yesterday, robert, as we were all watching the q&a over there, did he move the ball forward in any way did he have to on facebook's cambridge scandal? >> well, i think first of all, it's great that he actually came let's not forget he didn't have to come. it was voluntary for him to show up i thought he did a great job i mean you're never going to answer the questions to the degree that regulators want, but i thought he did a great job and moved the ball forward in terms of facebook. >> robert, what do you think of this general prevailing sentiment that's anti-big tech right now? surely it is rooted in some

massive mistakes that industry has made both in how data is treated, how that's explained, to consumers, but there was all this hubbub about getting him to actually testify in europe, he did it under the format that they picked and now some people are upset that he didn't say more >> yeah. i don't know if it's an anti-tech movement i think it's an anti-piracy movement i think the consumers are waking up to the fact that the world knows everything about us. somebody knew what time i got up this morning, somebody knew what i ordered at starbucks, and all that data is being compiled by very large companies and i think people are waking up saying, how comfortable am i to that but i have to tell you, i think consumers aren't really going to care long term, as long as it's not inconvenient, people will buy into it on a long-term basis. >> yeah. reminds me of something nadella told jon a few weeks ago, the idea of something that is,

quote, free, if you are willing to give part of yourself away for it, it can be used by the consumer as a bit of a currency of sorts you can trade it as you would currency. >> yeah. i guess the price, though, isn't very discoverable, is it do people really know what the data is worth? it's this kind of shell game data economy some would argue in which the only companies that have the power to transact are also the only ones who know the value of what's being transacted robert, what are your thoughts on where consumers stand in this data economy >> yeah. i think free is a very compelling proposition for most consumers. if i can pay for it and be more secure or free to me, i think most consumers will go with free and that's very powerful i was at a dinner once with tim cook and he said something i thought was very interesting he said, i accept that the government should known i own a fridge, i don't know if the government needs to know or

other companies, what's inside my fridge. and i think that's the issue, is people aren't sure what amount of privacy they want to give up. i don't see the model for facebook or google changing any time soon, and i think consumers will be okay with it, but the government is the one that's going to make us feel better something like a gdpr is definitely coming here you look at mark, even he is for it, because it's a smart guy and he knows it's inevitable >> yeah. certainly that was reflected in his comments in brussels and in washington not too long ago. speaking of all of this, robert, let's move on to amazon and more data privacy concerns. the company receiving some pushback over the facial i.d service called recognition, a technology that is selling to law enforcement through its most profitable division, amazon web services over two dozen civil rights organizations are calling for the company to stop selling this to the police. it comes as amazon receives rare

bipartisan criticism of the company. the frequent target of the president but senator sanders calling out the disparity of wealth between bezos and amazon as workers saying amazon founder jeff bezos' wealth increases $275 million every day meanwhile amazon workers have to rely on food stamps and public assistance to survive. this is what a rigged economy is all about. let's handle the privacy part. the facial recognition is happening at scale and they're charging very little, fractions of a penny, for each thousand scans. how does that change our lives >> yeah. first of all, i love this technology i think it's been around for a while. it's tested now. i think it's incredible. i think the idea of being able to scan large groups of people with a certain amount of certainty like they are now, is fantastic. the fact that amazon has brought the price down and made it accessible to police forces and other people, look, i think it's goodness anything that makes me more

secure, make me sleep better at night. i understand the complaint from people that oh, they can track somebody, but the reality is, you can be tracked today you can be tracked through credit card, cell phone towers, if the government wants to find you, my friend, they're going to find you so facial recognition, i think helps find bad guys faster i'm all for it >> robert, i had a chance to see verizon's sort of 5g various applications i think last week the ability of a 5g enabled camera, in other words with no latency to be sending rapid pictures back, the quality is so much better than it currently is, you can just look at every single person on the street and know who they are from one of these cameras. it did occur to me if you're in china that's a great tool for a surveillance society like that one. >> yeah, for sure. i think but don't you think that's happening today to some degree, and i think that this is one of the reasons we have to be

careful about foreign technology and what's embedded but you're right, the technology is becoming incredible. we are definitely moving fast forward into the world where you can find anybody any time. >> robert, on to the issue of the disparity between jeff bezos' net worth, connected to his stock ownership in amazon and what distributioncenter workers are paid, i sort of intentionally kicked a hornet's nest on twitter on this this morning because so many people seem to be ignoring the fact that this is a market-based economy, and yes, go after amazon for worker abuses if those exist in warehouses, go after them for unsafe working conditions, but hey if they're paying workers 30,000 plus a year plus benefits, a lot more care about these days, why is

amazon being singled out in this economy, unless there is an anti-big tech or anti-well sentiment right now? >> well, i don't think there's an anti-tech sentiment but anti-wealth sentiment. i have a unique perspective on it obviously i'm a free market guy and i want to, you know -- a big company and cyber security and we pay our people very well. but i was also a union steward and my dad worked in a blue collar environment his entire life there is something wrong in america today when the disparity is that great. amazon is not doing anything wrong. there's nothing wrong with what they pay their workers i'm certainly not advocating that we move to something like australia where minimum wage is $22 for somebody working in a coffee shop because i think that raises everybody's price including housing and so on, but there's something wrong.

something has gone sideways when that level of wealth can be created and it's not rising all the ships at the same time i don't have an answer, but i do think and i understand how people feel in middle america, when you're working that hard at $30,000 a year and you see somebody making that kind of wealth, it's -- it can be discouraging and i think we need to bring that back and get people encouraged and see that as a positive >> right really quickly on the facial recognition, amazon did provide a statement. they say that amazon requires customers comply with the law and be responsible when they use aws services when we find aws services are abused by a customer we suspend that customer's right to use that service and i'm sure there's more to that on-line a lot going on in our world today. talk to you soon. >> thank you, guys and big tech is shaking up

another industry, real estate. amazon teaming up with the nation's largest home builder leonard and facebook launching a home services resource diana is in northern virginia at one of the model homes with more on that. diana? >> well, jon, this is a lenar model smart home but amazon experienced show room. alexa, movie time. so when you can come here and try out all the gadgetry, try it again, alexa, movie time doesn't always work. anyway, you can come here and try all the gadgetry which is also sold on amazon and you can also look and see what's going to -- there we go. we have it coming down this is sold on amazon and also lenar gets to feature it in the home they get buyers who might be looking to try out the tech but maybe they see something in the home and say i want a lennar home

they have wi-fi certify. no dead spots in the house what it does for amazon not only sells the smart home technology in the house but also sells their relatively new home services business. >> it gives people exactly what they want. they want a simple place to come and see things, like it, want to buy it and what's special at amazon if you buy something in this home, it will come with amazon home services so that when you go home not only will the product arrive at your front door, they will be installed through the front door by an amazon employee in your home >> reporter: and that amazon employee is given to you from lennar for 90 days to make sure everything is customized like in the smart pantry, where you press the button and guess what, you've already ordered your bounty from amazon competition is seriously heating up in the smart home and in the home services arena. facebook today just announcing that its marketplace will allow customers to shop for home

services through facebook. but again, amazon is looking to use the nation's largest home builder and lennar using amazon as well to sell the smart technology and they intend to expand this nationwide let me try this one more time. alexa, start party time. okay back to you guys >> all right diana, alexa, taking orders when she feels like it. diana olick. the executive producer of "veep" frank rich joins us as the fight over fox's assets heats up plus, legendary venture capitalist allen patrick kauf with why he thinks bernie sanders is right about amazon and we'll take you for a interview with the secretary of the department of interior averages near two week lows. the dow off by 135 points.

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"veep," now "succession" on hbo will talk about his new show reminiscent of the murdochs and media at large as well watch oil back below 72 on an unexpected build in inventories "sawaly" mni quk le continues in a moment

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the murdoch family in the fight over the future of 21st century fox is compared to a network drama. hbo is taking a similar story to the small screen with a new series called "succession. >> i want to broadcast network i don't want to see what other news operations we can sweep up. >> local tv. >> nobody watches tv. >> why shouldn't we do all the news >> because that's not how things work in this country. >> we have a major problem he's erratic and making bad decisions. >> if he's not careful he's going to destroy the company. >> do you think you're going to do something. >> i think i'm the best option >> joining us at post nine is "succession's" executive producer long-time columnist frank rich, executive producer of the hit hbo series "veep. good to have you back. >> thanks for having me. >> i saw last night along with you at a screening and what's amazing to me how it -- you long ago saw some of these issues, family control, legacy media

trying to compete in a world of new media, it all comes together through a bunch of different narratives >> it's really wild. some of the writers who work on "succession" also have worked on "veep" and we found in "veep," that things that were in the show which had not happened in real life, suddenly started happening in real life months after we shot it and now we're finding the same thing is happening with "succession" because the pilot that you saw last night was shot 15 months ago. >> right. >> and so it's kind of wild for us >> what do you make -- you've answered this before what do you make of the murdoch analog is it about a murdoch-like family >> murdoch-like, but also redstone like, robert maxwell like, any kind of wealthy family, not that owns a business, not necessarily in the media either, but stirred in a lot of -- the characters we hope that come alive, fictional characters, it's not an exact matchup.

>> in the '80s we had "dallas" and "dynasty," now we have "billions," and "succession. what is it about this point in time that perhaps has the culture focussed on a different kind of rich family or tycoon? >> that's a great point because you're absolutely right. when you look back at "dallas" and "dynasty" it's old wealth and land and oil, and this is more about the fight of information, digital technology, broadcasting, the media, it's a much more -- and, of course, show business, too, is a much more modern kind of billionaire fortune in america and the world for that matter. >> here at this desk we're all watching media, the game theory on mergers and anti-trust. how much of that plays into creative decisions right now we talked to ben silverman last week about how some of these cbs/viacom is interfering with the pitch process, for example is that happening? >> i guess it is happening, but it's happening more in network

i mean hbo is sort of a niche operation. it's sort of its own world kind of like you guys really, even though you do something different, so we're not really being buffeted by those forces western kind of protected. if you're a huge broadcast network, broadcast, news stuff, 24 hours a day, i think you're subject to more market pressures. hbo is still a subscription service so it has a different place in the marketplace. >> although not spending nearly as much as netflix does on content each year. >> absolutely. >> and seemingly, i mean people are paying $14.99 a month for it, they want their value. >> they do i think our point about hbo is, look, we don't dump everything out there and a lot of netflix stuff is great, but not all of it, not all our stuff is great either bucket we curate and try to find high quality stuff and we hope "succession" in the

same -- >> how quickly do you know whether you got a hit on your hands and how much do they communicate with you netflix never tells its producers. >> exactly in the case of hbo, there's complete communication we know the number of viewers, we also know the reviews, who is watching, the buzz of it, and that's something that hbo can offer television creators. you know where you stand, and also that they're going to promote each show, not have 20 open in a week and only a couple get special attention. >> how carefully do you have to handle technology as a factor in the writing of a series? i mean, is it kind of like a character? i think about some of the old favorite story lines like "the fugitive" that wouldn't be possible with today's technology they would have found harrison ford like that so when you're crafting the plot line, how deeply do you have to think about snapchat, facebook, about cell phones and surveillance in order to make it believeble >> it's a very important factor because we want to be true to

life and the technology is changing all the time and i've seen even in "veep" iphone models are updated we've had to change it. in the case of "succession" in the second episode, there's a lot said in a hospital where a patient is recuperating and people are worried about news getting out, and you will see a lot of technology, websites, texting, everyone trying to manipulate that system it's an important part of the show >> you write a lot about politics for "new york mag." netflix announced a production deal with the obamas and immediately faced with tweets from people saying, canceling netflix, right how dangerous is it, politics and political polarity in the country, just infusing production >> it shouldn't -- really it shouldn't infuse production. look, obviously different tribes have separated on cable news channels no way around it and that's what's happened

but i think it's sort of silly to, you know, not watch netflix because they have a deal with the obamas or not watch abc because roseanne is a trump supporter. you limit your forms of entertainment and also you should see other points of view. i'm dieing to see what sitcom the obamas decide. >> everybody -- >> to reboot are they going to do the "beverly hillbillies" with oprah. >> this is a good time to be in the content creation business, is it not? >> it's a lot of fun. >> you refashioned yourself that way and benefitted from it do you expect it's going to continue for quite some time >> that's so much television right now as we all know, more than anyone can watch, more good television than anyone can watch, that you feel sometimes it's a bubble that could some day burst but who knows between -- there's a lot of great stuff and the technology is changing so fast, so who knows. it's -- you just can't guess but it's a lot of fun to work on

it because there's so many talented people involved. >> when the up fronts were last week the joke in media circles nobody cared about the new shows because all they want to know is how sherry and lester are going to get along is it a similar picture at hbo wondering if this merger is approved >> it's going on so long i think the feeling is, first of all, we don't know, and my feeling is, that you wouldn't buy hbo, whoever is buying it, whether at&t or that deal falls apart and someone else, you wouldn't buy it to change it because it's successful so our feeling is we'll probably be insulated from it i've been in media organizations which changed ownership. i was at "new york post" when rupert murdoch bought it and you have to ride with it and see what happens. >> "succession" premiers june 3rd. >> that's correct. >> on hbo. >> yes. >> we wish it all the success in the world. >> thank you for having me. >> good to see you frank rich. >> to michele with the european

close just about three minutes away michele? >> hey there, carl we are seeing a sell-off in europro today. red across the continent we have concerns about trade, signs of a slow down in the eurozone growth pattern and political uncertainty in italy where the two-year yield continues to climb the league party choice for prime minister has been summoned by italy's president for a meeting today. conty's academic has come under scrutiny of and not paying back the ecb $250 that italy owns them the desire to flout the rules about spending and they don't like the euro either people are asking is the euro at risk let's not overstate it it's early but once again the questions starting to arise. that's the politics. on to the economics. new data showing eurozone pmi falling in may to levels not seen in 18 months as business

activity and new order growth slowed the numbers are also indicating a slow down in germany and france as well we are seeing 10-year yields in those countries move lower today as italy's yields are moving higher you have the euro falling to november lows against the dollar and a nine-month low against the japanese yen the turkish lire is getting hammered confidence has lowered the prospect of an interest rate increase next month. the central bank is supposed to meet in two weeks. they think they should be hiking 400 to 500 basis points yesterday. they may mot hike in two weeks the expectation. currency sliding on concerns that erdogan is looking to take greater control over turkey's monetary policy and he likes low interest rates back to you. >> wow you're right about two weeks that's an eternity from now.

when we come back, face of greed, senator bernie sanders going after jeff bezos we'll talk with alan "options action" -- alan patriof in moment take a listen to what he said last time on "squawk alley." >> as a society we have to think wt t the fact that, you know, athapoint do we say we're destroying the fabric of america.

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. good morning i'm sue herera your cnbc news update at this hour president trump will speak on gang violence in a speech on long island, new york, this afternoon. last week at a white house meeting he used the word "animals" to describe illegal immigrants who enter the country such as ms-13 gang members. iran's foreign minister calling mike pompeo's comments about iran untrue and based on old delusions. he criticized the trump administration on iranian state tv on monday pompeo said that u.s. would impose sanctions if iran did not curb its support of militant groups in the middle east. the 77-year-old bus driver from the deadly may 17th highway crash be in new jersey had a

long history of license suspensions and moving violations that's according to the state motor vehicle commission hugh milroy sr. had 14 license suspensions and 8 speeding tickets. a sinkhole has opened up right outside the white house on sunday and reporters say it's getting bigger every day the hole is covered up and surrounded by orange cones but isn't this ironic, it sits outside the entrance to the white house press room and given the president's acrimonious relationship which the press i find that kind of interesting. that's the news update this hour back downtown to "squawk alley." david, back to you >> yeah. maybe kim jong-un is tunnelling up for their meeting you never know. >> never know. >> thank you >> you got it. >> welcome back to "squawk alley. i'm david faber right here along with jon fortt, here at post nine of the new york stock exchange we're monitoring two events. french president macron meeting with facebook ceo mark

zuckerberg among other tech ceos in paris this as zuckerberg continues that european apology tour following the cambridge analytica scandal. the ceo of general electric is speaking at the electrical products group conference. we will continue to monitor that and keep you updated in case there are any important headlines to share oil prices continue to head higher, there's a big oil industry conference taking place in north dakota. our brian sullivan is in bismarck with the u.s. interior secretary ryan zinke take it away >> david, thank you very much. i thought that long boat key, florida, was a ways away but here we are in bismarck with secretary zinke. thank you for joining us on cnbc. >> great to be with you. >> we yesterday got a pretty cool opportunity to go out in the middle of north dakota on a drilling rig with the governor and ceo of the continental resources and impromptu dialog and talked about the need for energy infrastructure.

energy infrastructure is part of infrastructure as a whole, something your boss, the president of the united states, has promised do you believe that we still on track to getting an infrastructure package passed this year or next year that will include energy >> i think we will focus on infrastructure it's not just about the, you know, the government funding part some is about permitting you look at some of these bridges, some of these have been languishing for 17 years and a lot of the process is looking, streamlining regulation, the president for every regulation put in, we've removed 22 unprecedented. and then looking at the permit, how do you shorten the time of the permitting process without removing regulation and the regulatory framework on permitting should use innovation, best science, best practices, to improve safety, reliability and environmental stewardship, but the permit process itself needs to be shortened and government itself

needs to work together. >> when some people hear shorten the permitting process or ease regulation, what they hear is, you're caving in to corporate america and you're risking environmental hazards by speeding things up that need to take their time. >> well, you look at regulatory framework and no one does it better than american energy. it's cleaner, it's innovative, but how does a regulatory framework take into consideration new technology, best practices, best science the goal of regulatory framework is to increase safety, increase reliability, and to increase environmental stewardship. you have to work with your partners, work with the conservation groups, but also work with industry groups to look at best practices to make sure we do incorporate innovation that's part of the permitting process to make sure it's not arbitrary. >> has it been arbitrary >> it has in some cases. some -- i will give you an

example. you have a bridge and you're going have multiple opinions sometimes produced by different agencies with different missions in different regions and one bureau will tell you, give you direction one way, which is completely in conflict with another bureau that say fish and wildlife telling you something different. we need to learn to work together the military does joint operations on permitting it's better to have the stakeholders at the table at once, the state, the conservation groups, the industry groups, to look at a scoping project and go together. if it's a bad project let's make that call early. if it's a good project let's not delay, delay, delay because it costs money to delay as you know, value of money. some of these permitting processes is 60 years ago or 10 years ago, were $60 million. today the same projects under the same scoping will cost hundreds of millions of dollars. >> we can speak with small north

dakota oil and gas producers, doesn't have to be a huge corporation, who will talk to us on cnbc about trade and say i need every market possible for my product, whether it's china for gas, or oil or exported product or refined product, whatever it is so in a way, your purview is, in the middle of these trade talks in d.c., what is the role of oil and gas and trade, not just with nafta, but with china as well? do you think something equitable will get done on all sides >> well, i do. and energy is important, environmentally it's better to produce energy here under reasonable regulation than watch it get produced overseas with none economically it's important, but also when the president said energy dominance, today we're at 10.6 million barrels a day, first time in 60 years we're exporting liquid natural gas, if you want to put pressure on iran, two ways, do it militarily or economically, and having -- >> what's the better way >> economically. having the ability to subplant

every drop of crude to make sure we don't disrupt world markets but the united states has a capacity to use energy and that leverage, to help on diplomacy and make sure, you know, no one wants a nuclear weapon coming out of iran, certainly russia is more or less very energy centric, but having the leverage on russia to supply eastern europe, europe with clean liquid natural gas, made in america, is a big, big deal. >> u.s. interior secretary ryan zinke, it was a pleasure thank you for joining us on cnbc we really appreciate it, sir. >> great to be with you. >> thank you, brian. brian sullivan. from apology to appeasement, big tech making a new pitch to europe mark zuckerberg among tech ceos meeting the french president addressing data privacy concerns ahead of new european data regulations going into effect this week. what's the potential impact investors should watch out for legendary venture capital

investor alan patriof joins us now at post nine great to have you here. >> thank you, jon. >> big picture, how is big tech doing at fulfilling whatever its obligation is to society right now, this fits under data regulation, privacy issues, and a lot more >> i don't think there's any question we've got through a wave of technological revolution in this country over the lasts 10, 20 years and we're now beginning and perhaps a little late to start going back and coming and saying okay, what have we done here. i don't want to say the munster we've created, but it's a pretty big influence that we've got now from several major technology companies. i mean, you can't ignore the fact that facebook and google and twitter and apple, i mean and amazon, they are major factors. i just got back from san francisco this morning on the

red eye and if you want to see something, just a map of the real estate developments that are going on in silicon valley and in downtown san francisco, you would think you should call it facebook. they announced a 750,000 square foot building the day i was there, an entire building, and i gather this is going to instagram, that's the kind of influence. it's penetrating our whole society and our whole infrastructure and we have to be concerned. >> i want to talk to you about facts and news because it's interesting, you are an investor in "huffington post" which has ended up with verizon, you're an investor in ax ios and others. not a lot of venture capital going into journalistic news-based organizations right now. what is the opportunity that you see there and when are we going to know whether it pays off? >> there's always opportunity for new media. there's no question.

we've also invested in a podcast company recently and also invested in a medical information company, so content information is something we always -- and we're also in cyber security, we're also in new software companies and i say that fintech is a critical part of our portfolio at the moment and we're continuing to invest a company called acorn, which is a household word and before that venmo which is a household word today and we will continue to do a lot of things. i think the issue of what's going on in england, sorry in europe, gd pr, it's the forerunner of what's going to happen here. there has got to be greater attention. it's inevitable, but congress is going to do something sooner than later and spending time on investigating and looking into these and coming up with hopefully reasonable regulations that facebook and the others can

live with. the idea should not be to put them out of business they're an important part of the fabric of our society today. but just how big can it be >> but, you know, we had robert herkvick arguing as long as they're offering something free and the great convenience that comes from it, they're not unwilling to share a lot of their information and not unwilling to give up the sense of privacy at what point do we start to see a great deal of momentum behind this from the consumer >> you know it's the same option you have in pandora and you have some spotify you can even get the music with ads or without ads want to pay for it eliminate the ads. i think people will -- there will be people who choose between that i think that in the case of facebook and google, it's the information that they're collecting for free, you know. i know at the time "huffington post" i got comments from many people "huffington post" was

built on a lot of free inputs that people wrote in voluntarily because they wanted to have visibility, that's why they did it, and i think in the case of facebook, in the case of facebook and google, they want what the information that comes out of it, amazon, they want access to goods, services, and it's a question of where it becomes so big that there are no alternatives facebook now has, you know, a huge percentage of its area, google is what 90% of the search business today >> senator bernie sanders put a lot of heat on amazon with a tweet pointing out the discrepancy between the amount of money that jeff bezos, the founder and ceo, is worth versus how much the distribution center workers make on average. amazon responded with more information about the benefits they pay, et cetera. to what extent is a company like amazon, which has done very

well, jeff bezos, richest man in the world, on paper, responsible for raising the salaries of workers at that most fundamental level of moving goods around this country. >> yeah. remember, amazon went through years of losses that they absorbed which got them to the point we're at now jeff bezos has done a brilliant job in building one of the most important companies in this country. employs a lot of people. shouldn't lose sight of that and i think that, you know, the wage level they're creating for their warehouse workers i'm sure has some juxtaposition to the economics of their business. i don't think anyone should just wave a flag and say he makes a ton of money and the warehouse people make so much less there are ratios and perhaps the board has to be concerned with that and figure out how to -- a lot of the money that jeff bezos and a lot of these ceos are getting are options and if

they -- the stock goes up they make it to option. they don't ever seem to separate what they're getting in actual cash compensation and what they're getting through stock compensation >> right >> and it does go both ways, by the way, with stocks. >> it has a way of doing that, does it not. >> unfortunately. >> he still got close to 20% of that company which helps alan, thank you so much for being with us. >> thank you >> alan patriof. >> always a pleasure. >> more "squawk alley" coming up first rick santelli, what do you have your eye on today >> well, i'm watching yields they crept down a bit this morning, but they're coming back up a bit ponder this, the u.s. 10-year has outrun bunds by over 50 basis points this year on the spread we'll talk about that 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.

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here's what's coming up on the halftime report. some of the biggest money on the street is betting that stocks can still go higher. is that the right call we will debate it on the desk. plus the washington wild card, we'll debate the best place for your money with the trade turbulence, among others things, and our call of the day, it might have our josh brown mighty upset today. don't want to do that. see you at the top of the hour on halftime. ten minutes away. >> all right yeah can't wait thanks, scott. let's send it over to the cme group, rick santelli, for the santelli exchange. rick >> thanks, david you know, i'm pretty excited today because one of the staples that has kept many in the hunt with respect to trying to make

sense about how a globally central bank managed set of interest rates can be traded at all and, of course, it's being a little less managed considering our fed and the ecb are trying to moderate some of their balance sheet issues, our fed is the the only one of the major economies, of course, when you look at what's going on in bank of england, bank of japan and eu with regard to raising rates. there's a major recalibration going on and it isn't only from europe, but ponder this. the spread between tens and boons hovering at 250 basis points the widest it's been since 1989. hopefully you're looking at a 20-year chard. we can't even go back that far the point here is that it settled at 195 it's up 50 basis points. tens settled at 2.41 53 versus 60, what that means is 88% of our treasury move was unanswered by the rising european rates

then you add in what's going on in italy, what's going on with the dollar, what's going on with emerging markets and you start to see a recalibration other things, this was in the financial times yesterday. i just found it fascinating. quite a simple chart basically, a glimpse of the shadow banking lending going on in china from 2002 you see how it's come down a bit to around 2002, 2003 levels. it shows us there's less horsepower going in, at least the artificial kind, or maybe artificial isn't the right word. priming the pump, so to speak, and we have done a lot of pump priming. ten-year note yields this is current. this chart starts in early 2017. reason i picked it, 2.63 was the high yield boom, when we took the high yield out, we never came back. the closest we came back was in many basis points. so it was unchallenged then, if we look to the 24th, we had a 3.03, first yield high

the reason i pick this is because it echoes all the way back to 12/31 of 2013. then you had to go back to 2011 to elims 3% again, which we have since done the point is this is the first time since that date we're now trading intraday below that level. that's very significant, and very quickly, that's flight to safety buying. when you look at the cumulative buying sheets, you can see it's gone down from close to 16.7 trillion with a "t" to around 16.2, but that's still a lot of fuel, but it's less fuel all these things are coming into our market along with some buyers nervous about what we have just discussed. david faber, back to you >> all right love it when you get out the charts, rick thank you. rick santelli. >> when we come back, why uber, lyft, and an driessen are betting big on scooters deitspe backlash more "squawk alley" coming up. need a change of scenery?

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if you live in san francisco, los angeles, or washington, d.c., you may have noticed recently that e-scooters are everywhere, but they have come with some controversy aditi roy is in san francisco with that story. aditi. >> hi, there, david. that's right electric scooters like this one seem to be takingobe cities like here in san francisco to los angeles, even d.c., and some cities in between. they could be coming to a city near you because they're

spreading like wildfire. i want to show you how it works. you take a phone app, unlock it by scanning, and then you can see it is dockless it's not attached to anything so you can pick it up and drop it off wherever you want. with all the hype has come headaches from city officials. a lot of money is pouring into the space, including from investors like andriessen horowitz uber and lyft are also reportedly interested in getting into the craze, but check out some of these pictures which show the other side of things, too. scooters have been vandalized, tossed into the crash because they're scattered all over the streets. a lot of people saying they're a road hazard as well. here in sf, companies with apply for permits as early as this week with city officials come out with applications, even though some have already been operating for a couple months already. three major companies founded by people who work and are executives at uber and lyft, bird, lime, and spin are the major ones the competition is fierce. back to you guys

>> okay. thank you, aditi and that is just about going to do it for "squawk alley." keeping an eye on hp enterprise. that stock is down 10% beat on the top and bottom lines, but not as much as people were hoping for in q1. >> a pretty good year so far, i believe. >> david, thanks for being with us we're going to toss it to the half and welcome to the "halftime report." i'm scott wapner our top trade this hour, big money, big bet why some of the world's biggest investors are still bullish on stocks are new highs really in reach? with us to discuss and debate that is joe, josh, jon and pete mugerjanuary, and courtney gibson is here, the president of luke capital and a cnbc contributor. let's begin with the markets stocks pulling back for fourth time in five days. uncertainty over trade and north kore