good morning it is 11:00 a.m. on wall street, 8:00 at the code conference in california, and "squawk alley" is live. ♪

♪ ♪ good wednesday morning welcome to "squawk alley." i'm carol with julia boorstin, jon fortt, here at the code conference in rancho palhasver des. with us this morning, recode's executive editor cara swisher. >> good morning. >> congratulations on a great start to the conference. >> thanks. worked out well. >> last night some of the highlights, 21st century fox ceo james murdoch speaking at code addressing the comcast and disney bids for the company's assets and answering questions on the competition including the threat of streaming services like netflix which recently became the world's most valuable entertainment company by market cap. take a listenp >> look at the kind of investment that netflix is required to make in anticipation of potentially their not being

able to acquire rights from outside programmers they're doing a huge amount of original production those are enormous bets and when you add on top of that live sports and things of that nature, there are huge costs and i think they've done a great job in many ways, delivering the user experience for customers that have raised the bar for competitors. >> really interesting lines of questioning from peter on that there was -- i wonder what you found more interesting, the balance between disney/comcast here or this conversation more angled towards why sell now. what is changing about the about is that would require you to get out some of these assets >> i thought that was the most interesting part right now, if you think about it, we were talking about at&t and we will have at&t ceo stevenson later, these companies aren't big enough given the competition that's coming from the google, netflix, amazon, apple. someone was like i almost feel sorry for at&t how could you feel sorry for a multibillion dollar

organization it was interesting they need that kind of left which is a problem for regulators and consumers. >> didn't want to own up to a reason, an external reason, for selling that, but it seems like a few years ago, media properties were depressed, but it's like a hot real estate market now. >> now it is. >> values are amazing. i wonder how much of that played into or is playing into this environment. >> there's this question of how fox or how and why fox switched from being a buyer to a seller and whether that's -- >> a big buyer. >> and whether that's about the fact that there aren't that many assets left to buy or about the fact that netflix is putting too much pressure on the company to which he responded, no, it's not that we don't need this, it's that we're going to be such a better player in the space. >> right. >> of course. >> we don't need to sell. >> looking at that potential of the scale. you really have to look how big a combined fox and disney would be and what that means if you're going up against a netflix. >> and also the technology these companies are not good at technology in comparison

the next phase is all about technology and delivery systems and the ability to get to customers and it is about marketing and the content. you have to have the technology expertise the other companies have. >> he was defensive saying we are going direct to consumer with hulu which disney would control a majority of stake of. >> they're like turtsles >> they're doing these different things internationally that's really the question, have they done enough to go correct to consumer. >> i had a talk with james before, i covered disney when they had all their different things they tried and this was 25 years ago and they just -- all these companies, not just news corp, have been stumbling forward in the technology space because they don't have the best technologyist. i think that's -- they need to bulk up. a problem for customers, regulators, these are massive giant companies. >> do you expect stevenson to give us more to help either discount the outcome of this ruling or understand their rationale here >> i think he has to talk a lot

about what he's doing. they're facing, obviously, headwinds from regulators and it's interesting why disney isn't, but you can talk about that and figure that out quickly. i think it should be interesting to see what they're -- most people think the ruling will be in their favor. >> is that where you are >> i'm not a legal expert but that's what i -- >> we will hear soon. >> smart people have said that. >> there are so many big companies getting in trouble that it was almost -- it's almost like the heat is off of you, after you let a couple weeks pass it's interesting, james murdoch up there, they've had scale, but so long ago. sheryl sandberg coming up next and evan spiegel his stock isn't doing great. >> i don't take showers any more i spritz myself off and -- >> yeah, yeah. >> from all the news you can absorb in that time. >> yeah. >> speaking of all of that, roseanne remains a story today abc canceling the reboot of the show after that racist tweet from comedian roseanne barr

about adviser valerie jarrett. murdoch did weigh in on that take a listen to that. >> you have to make the right call it's not really about just keeping that audience going. it's about what's the right thing to do, what's the right thing for your company, for the brand, for your customers but also for your colleagues inside the business and do you believe in things or do you not and you have to try that you have to be mindful you have to tolerate a huge diversity of voices because all of your creative partners, all of your judicialists, all these -- journalists, all these people have independent identities and ways to broadcast and they're not all going to agree with each other and you're not going to agree with them all. >> how do you think the story evolves from here? the abc story? >> well, i mean they obviously did the right thing. she's been doing this for a while. she's been moving up towards this for a long time and she's -- she posts appalling tweets all the time and i guess it got too appalling at this point and it was it was the worst thing you could say. i think they had to do it. i think it would have been -- they would have faced head

winds. the people working for them, he's right do you want to represent this is this what you want out of a -- no matter how much money you make on a show there's always another show. they'll come up with another one. >> the thing that is remarkable how quickly this happened and looking at this, following on the whole me too, timesup thing, james murdoch was quick to say bill o'reilly was our most profitable show on fox news and we canceled him and lead by example and now is the time when ceos want to make it clear there is a zero tolerance policy for things that cross that line. >> they canceled it after reporters reported it. they knew that was happening if they didn't they should have. that's the kind of thing is, when there was public pressure in this case they didn't have to know public pressure, she did it herself out in the open, roseanne did, and made the tweet that was just beyond -- i just can't believe she wrote that. >> this wouldn't be zero tolerance. this -- there was a blowback over the joke on the show that

involved "blackish" and "fresh off the boat." one wonders if -- >> she did an odd nazi thing a couple years ago. >> bob iger tweeted about this, which seems a little bit unusual. how much of this is reputational for disney overall, not just abc? >> well, i mean, as a decent human being, i mean -- on some level it's -- you just can't there's a point where our civil discourse has got son bad and we talked about that with brad smith, the civil discourse has gone so downhill certain things are acceptable now and people get fired for it when they cross that line. the line is moving a little too far for my taste. >> i wonder the speed of which ceos are expected to respond becoming faster and if things have gotten faster -- >> look at starbucks how fast -- i thought kevin johnson did an amazing job responding quick throw a bad situation. there's viral videos and all kinds of things that can happen quickly and public reaction so they have to react in real time. >> people say it's -- i think the times says it was unprecedented for a number one

show to be cansled in this way do you think, though, and some of the tick tocks have been interesting at disney what's been reported, but do you think numbers play a role in that conversation is there a limit at which they say this is too valuable to take a move on? >> no. not in that case, that tweet what's the next day? if she's sitting there on the show i don't know what you could do >> even o'reilly said it would have insulted millions of americans. >> i don't know what you would do the next day or hour. >> i'm hearing a lot from people in hollywood about how, you know -- probably 100 if not more people will lose their jobs because of this and what a shame it is that one person can have that kind of impact and you have this conversation about, you know, should there be more push and pull or a way that the studio figures out a way to do the show without her, but at some point -- >> which they've done in the snoost it's called "roseanne". >> it is built around her. that's a talented cast

laurie metcalf and sara gilbert. >> i thought what an appalling human being to do this and be selfish and indulgent and racist and -- i don't know how -- i can't insult her more. what she did >> moving on to snapchat which was another big highlight of last night ceo evan spiegel talked about a bunch of things including some veiled jabs at facebook and the code conference saying it should just copy snap's security features addressed the controversial redesign of the app which you might be familiar with take a look at that. >> after q4 earnings our stock up was 50% in one day. everyone is really excited they could not comprehend why we would totally change our product and redesign the service, right after that amazing blockbuster earnings for me, that was a really great lesson because to me, it teaches the importance of having that long-term conviction even though it's going to surprise people, even though it will make people feel uncomfortable despite trying to prepare, you know, our community, but also the investor community and our team for the

disruption that we thought would come with the redesign it's still really had an impact. >> i like the way you came at him, trying to draw out why the motivation for going public, right. >> absolutely. i was trying to get to that. he doesn't seem to like it it's been a hard road. why did they go so early they didn't need to. i thought it was a great interview. he's a shy person and does not give a lot of interviews and has this sort of singular, looks like he's a loner kind of thing. what i did before we went out, i had lots of meetings with him and we have the most fascinating conversations of people. i meet everybody i find my conversations with him, he's so creative and innovative and interesting just talk like we talk when we're in venice beach in your office i know but i can -- and i said you got to do it because you're really smart just let the chips fall where they may i thought he was great. >> you pushed him on the issue of facebook copying snapchat's features but you went down this line and sort of like how you going to

survive if they're just going to keep on copying your best features do you feel like you got a good answer >> he gave a good quip at facebook where he said i wish they would copy our data protection rules which are quite good. >> do you think you got to the heart of what they will do if they want do anything original without facebook copying it. >> absolutely. i think unfortunately what happens is, facebook doesn't just copy, they copy well and follow fast. and there's an expression a long time ago, sam walton, someone, and i was talking about walmart used to copy a lot of retailers and one executive there, might have been sam walton, they said the plains are covered with the bodies of pioneers which means that's -- other people got to california i think about that a lot he's so innovative, the features are interesting, it's -- he has so many interesting ideas going on at snapchat and then facebook comes in. >> he did not look to me, sound to me, like a ceo under intense investor pressure. maybe part of that is because investors get no votes. >> right. >> at snap.

>> right. >> he must be under intense employee pressure because those are investors who matter to him actually being able to get his vision executed. how much do you think that's at play and the messages that he's trying to give about vision? >> i think he's got a problem with the turnover, but, you know, facebook did at the beginning too. you don't remember that. there was an enormous amount of turnover at facebook of lots of senior executives. i think he's finding his management staff a terrific article yesterday about -- i think yesterday, about the culture, the toxic culture, read like every other toxic bro culture in silicon valley he addressed it forth rightly. >> he said he was grateful to get this letter from an employee, a wake-up call and grateful for that. do you think that is too late? >> he's been doing -- yes, i think the letter was six months ago, i think i think the article was yesterday. but yes, of course that's my whole issue with a lot of these people. same thing with sheryl sandberg, like we didn't know this was a problem or we missed this.

a lot of we missed this. i'm sort of like, aren't you paid multibillions of dollars. if i miss something i'm in big trouble. >> a theme actually from a bunch of people. >> sorry. >> mobile phones and search. winter what you think of -- i mean for so long we talked about social network effects the markets rewarded companies that had great network effects that's less important to him does the mark learn to appreciate that? >> i don't know. my kids complain about the redesign but they use it all the time it's a lovely product and that's -- but there's lots of lovely products that get mowed over and that's unfortunate. i think it's going to be -- you wonder if it could be sold or, you know, you think of apple buying it. lots of buyers for something like this wonderful product. but the question is, does he want to do that. he, obviously, cashed out quite a bit. it was interesting it was -- i don't know >> he talked about not wanting to rely too much on the data >> yeah. >> and not having data drive their decision making, relying on their own product design intuition. >> yeah. >> and you kind of pushed him on

that. >> he has to rely on the data too. but i like -- he's a designer and he says when they copy him we're complimented designers are complimented because they get copied so much it's tough from a business point of view. i got so much response for that interview because everybody -- he was heartfelt and i don't think people know him. i really liked him he had the sort of spirit of an entrepreneur that people like and have forgotten in the giant companies battling it out for dominance. >> we need him to be as open as elon is on twitter. >> we don't want that. we'll see. >> build the persona quick today, highlights for you? what are you interested in. >> ryan from airbnb, dara from uber, daniel ek from spotify, we have randall stephenson, caterina lake from stitchfix just an amazing lineup mary maker delivering her report and senator john warner very soon, talking about the -- mark warner, i'm sorry. >> if there's a narrative

running through this all year. >> technology responsibility and regulation and will tech grow up and where does it go from here what's the next move >> really good stuff. >> thank you. >> as always, thanks for having us good seeing you, cara swisher of recode back to the nyse. >> thanks very much. we want to have a quick check in on where markets stand we are higher today, markets opened higher and steadily improved over the last hour and a half or so we're up about 0.8% on the dow s&p up 0.9%, and nasdaq up 0.8%. energy sector soaring 3% as wti raises 2%. financials having a better day than yesterday coming up, we hear what silicon heavyweights like sheryl sandberg are saying about tech regulation quk nyer awhe. "sawalley" is back in a couple minutes

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we are keeping our eyes on the markets rebounding this morning with the dow up nearly 200 points it was over 200 at the highs european markets moving higher, just a few minutes away from the close over there let's bring in yuri director of fidelity investments and jeff, chief global investment strategist at charles schwab to discuss the moves. good to see you. jeff, obviously a firmer tone in markets but i wonder if in the past week we have seen a bit of a changing character in markets or a fleeting thing? we came in talking about global growth momentum, rising yields, rising oil prices, inflation,

would the fed get more aggressive and seems a lot of those things have been in reverse. a stutter step or a new type of market we're in? >> the global economic soft spot we saw in the first quarter and lingered into the second quarter has made the market more jittery, more susceptible to these types of headlines and political risks as we saw with italy yesterday. remember, these types of events aren't unique. this isn't the first time we've been through them, but in recent years, global economic growth was maybe a little bit more robust or momentum was improving and the market just ignored them now we are in a different environment. economic momentum may have peaked, maybe not absolute growth but the growth rate has peaked and we're more susceptible. i think this italian issue is one that may be on the back burn for a little while. >> uri, you've been looking fo a market, i would say like what we've had, essentially flattish in terms of the index, very good earnings, but the market not willing to pay up for them so much has anything changed here as we

enter the mid-point of the year? do you think we've seen the lows for the u.s. indexes or do we still have more time to chop lower? >> yeah, so we are in this sort of re-set if you will where the market's valuation has been able to come down quite a bit through three full p/e points since january, while the s&p is basically down 5% or so. really not a big deal and that's, of course, because earnings are booming but as you pointed out, the market doesn't really always reward very, very strong earnings because it's not considered sustainable so to me, with earnings known entity, it comes down to financial conditions and the italian situation kind of plays into that and it's amazing that just in the last nine days, the market has unpriced almost two full rate hikes from the fed, you know, bringing it down from 5 to only 3 hikes over the next two years. that to me seems a little bit

excessive. i doubt that the fed is going to be that sensitive to what's happening in italy but it comes -- all comes down to financial conditions and those are tightening as they generally tend to do during a fed tightening cycle so in terms of italy, it really comes down to do the developments in italy sway the fed away from tightening on the path that they have been telling us they will and i'm not at all convinced that that's going to be the case and if that's the case then financial conditions probably will continue to tighten somewhat and that may mean that lows are actually not in i do think we're basically in a 10% range and we probably have seen the range lows, but we're kind of in the middle of that range and there's still a little bit of downward pressure you see this at em, em is in the cross hairs when the dollar tightens and growth starts to weaken as jeff said and financial conditions tighten you see that play out and that's what's happening. >> clearly yesterday there was a

big effect on yields in the u.s. from the italy story and that effects certain sectors particularly the banks what about that disaster tail risk do you think there is a realistic chance of italy getting to a point where it has a government that wants to leave the euro or is that still highly unlikely >> i personally think it's somewhat unlikely. you know, if you look at some of the polls, certainly the italian population is probably less pro euro than maybe the dutch or germans are. the polls still suggest about 60% are pro euro and what we saw yesterday with the dramatic widening in spreads of italy versus germany is maybe that was a wake-up call for the italian politicians that new elections and a euroreferendum may not b such a great idea and maybe they can figure out a way to keep this going and that's essentially what we're seeing in the headlines, you know, play out today basically. i'm not convinced that it's going to go into that hard left

that some people are worried about. >> guys, we've got to leave it there but you both told us we have to keep paying attention to the italian situation. we will do that. thanks for your time this morning. let's get back out to the west coast for more on what's coming up. carl >> all right mike, thanks a lot more coming up from the tech heavyweights here at the code conference. tomorrow, do in the miss our exclusive interview with the uber ceo more "squawk alley" returns live from california, the code conference in a moment [ male announcer ] eligible for medicare? that's a good thing, but it doesn't cover everything. only about 80% of your part b medical expenses. the rest is up to you. so consider an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans, they pick up some of what medicare doesn't pay and could save you in out-of-pocket medical costs.

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at hollidayinn.com is. good morning i'm sue herera here's your cnbc news update at this hour. a close associate of kim jong-un was seen in singapore today. kim chang song among three passengers leaving a hotel meeting with u.s. officials to try and prepare for an expected summit between the two

countries. hamas says they have agreed to a cease-fire with israel in gaza to end the largest flare-up of violence between the two sides since the 2014 war, but hamas said if israel fires again they will respond accordingly. here in the u.s. an explosion at a ups facility in kentucky sent 12 to the hospital fire officials believe tanks on a trailer that held fuel for welding is the source of the explosion. and the american cancer society releasing new guidelines on colon cancer screening. it is recommending people start the screening process five years earlier, at age 45, instead of age 50 they cited a rise in colorectal cases among young and middle-aged adults. and that is the news update for this hour. back downtown to "squawk alley." i will send it back to you. >> thank you very much for that. let's get to seema moody with us ahead of the european

close. >> european stocks rebounding from the worst session in two months as fears about italy's political situation recede for now and one reason why, italy selling more than $6 billion worth of bonds in its latest debt offering despite facing higher borrowing costs than in last month's auction there are reports that say the populist five star and league parties have resumed talks in hopes of forming a coalition government and avoiding new elections. another story important to take note of is earnings growth continues to be a concern in europe new data from thompson reuters shows that for the stock 600 first quarter earnings are expected to rise only 4.3% from a year ago revenue seen falling by 0.8% and that's compared to the 26% jump that we've seen in u.s. profit growth in q1 one silver lining the decline in the value of the euro. it's higher 116 against the u.s. dollar but down about 4% in the past one month some analysts say that longer term the euro's decline could

help sectors such as autos and retail in europe that are more dependent on exports another currency in focus is the turkish lira rallying amid broader dollar weakness after tumbling to the all-time low against the greenback. one stock in focus is buyer, one of the gainers on the german dax after u.s. regulators approved the company's deal to acquire monsanto once buyer agreed to sell about $9 billion in assets m&a still a big part of the european story >> and seema, a bounceback obviously broadly for european markets including italy up but the european banks not rallying to the same degree we've seen in the u.s. today. >> sure. they're higher today but not as much as what we're seeing in the u.s., still in response to what we're seeing in the bond market. >> absolutely. thank you very much for that seema moody for us with the european close and of course u.s. markets also higher we're up about just shy of 200 points on the dow at this stage. all three of the main indices up

shy of 1%. let's get back out to california with the code conference carl, over to you. >> hey, wilf, thanks very much facebook is taking a lot of heat at the code conference this year, both james murdoch and evan spiegel taking a swing at the social network murdoch calling the company more of an attack platform for russian manipulation than a social one take a listen. >> we would really appreciate it if they copied our data protection practices also. >> oh. i was waiting for that. >> maybe that's what sheryl is announcing. >> cara said one of the themes of the year was tech responsibility it's being fudged through facebook as a punching bag work you agree? >> absolutely. it was amazing last night first to hear james murdoch, he kind of brought it up he was asked specificallyabout facebook advertising and whether the rise is diminishing the power of traditional tv advertising and he said i can't believe those two, three second

ads are being measured as ads and took a dig not just at the ad business but then he shifted and said it's ridiculous how it's used as a platform for manipulation it's being attacked on all fronts >> the most striking thing for me, how much people are not talking about apple. this used to be kind of apple fest tim cook, steve jobs when he was alive would come here every year and then a variety of other apple executive, the iphone and apple watch and several other things but apple has barely been mentioned here mobile has barely been mentioned. big theme is punching up and a lot of tech giants to take some punishment this year. >> it seems like with that punching up and the tech giants there's sort of this talk of the google, facebook digital ad duopoly. >> data. >> and a lot of talk about netflix and the threat that poses the traditional media giants it was remarkable about how little we heard apple mentioned yesterday. >> you mentioned earlier, this idea that tech companies pushing

back are working against tech regulation in the meantime things get lost, right. things get lost in innovation, things get lost in operations. brad smith mentioned this from microsoft. are they making excuses and saying don't do this to us because you might lose out on the next big thing >> it was interesting to hear that lesson in history from brad smith yesterday and he laid out how much time the focus of the government on them and the spotlight that that put in all the time that sucked up, how much that cost them. so really interesting to hear about that and to look at what that could mean for facebook going forward. >> and i think a lot of tech giants are taking that advice to heart. i think he was in essence saying boy, we fought and fought and fought too long. if we had compromised earlier there are things we might not have missed. google's approach, for example, alphabet's approach way different. they've been doing a bit of give and take for a lot longer and they haven't got noon the same level of -- gotten into the same level of microsoft hot water. >> i'm told as we're talking the president is out with a tweet on

roseanne i don't have it in front of me here we were wondering if and when the president would weigh in on what's clearly been the number one media story of the week. the month. maybe the year 44 as you know bob iger of abc called valerie jarrett to let her know abc does not tolerate comments like those made by roseanne barr. gee, never called put trump for the horrible statements made and said about me on abc maybe i just didn't get the call this takes us back to the fact that iger was one of the first executives to leave the manufacturing or the advisory council, a long history here between the president and private sector. >> very interesting that the president weighed in on this you have to say you kind of expected given that he did call roseanne to congratulate her about the show with her being a trump supporter. you know, it's going to add fuel to this. roseanne said she was quitting twitter. she has not quit twitter she said she's going to stand up to bullies on twitter.

there's a lot of that going back and forth on twitter >> yeah. there was a lot of conversation yesterday about the decisions that these companies are making about the role they want to play in public and social issues. we heard brad smith talk about immigration, we heard james murdoch talk about him wanting to weigh in on the charleston issue. >> when we return zillow's group ceo is here with us at code. we're going to get his take on facebook, fox and snap executives on tech regulation and also his take on house flipping which zillow is into. more "squawk alley" after the break live from the code conference

rascoff,. welcome back one of the hot topics of conversation here at code stricter regulations around privacy. especially on the heels of gdpr. here's facebook coo sheryl sandberg last night. >> it's not a question of people say should facebook be regulated, should other companies in the industry be regulated. we are regulated regulation often actually entrenches big company gdpr we've done a good job complying with, put up expensive to build systems and tools we're supportive of the right regulation that supports innovation, based on an understanding of the technology and that is good for people.

>> joining us now to talk about all of this zillow group ceo spencer rascoff. great to have you. >> thanks. >> what strikes you about the conversation so far this year? not just up on stage but in the halls? >> well, it's a bit of a wakeup moment for tech. this whole year has been, obviously, from the election hacking to different data privacy scandals i think what i have seen is tech realizing that there's just too much naivety in product design so much services in tech the boundless optimism of entrepreneurs has made people not realize howthese things ca be used for evil we, obviously, saw it with facebook where it was hacked for the elections and we saw it -- like early uber. it was launched without rider protections. early airbnb, launched without guest protections. even now these scooters that are taking over the west coast, you know, never occurred to anyone that bad guys might cut the brakes on them and now they're redesigning scooters to make sure the brake wires inside the

metal casing, tech needs to realize there are bad people out there that use the platform for bad things. >> sheryl strand berg this is an open platform and they will do everything they can to prevent these things from happening but they will never be able to prevent them entirely. do you think they're doing enough >> i really think that the cultural shift that they talked about yesterday is real. you can see it in sheryl's eyes and hear it in the -- the facebook executives that i talked to, really have taken to heart, they feel guilt they feel that their platform was used in a way that it was not designed for and they really are throwing resources and intellect at the problem. to the point of regulation, i think that's going to be the bigger impact than any potential regulation, do the companies take seriously the impact of their platform and yes, i do think facebook has realized that >> so you think government regulation is sort of the answer here or is this going to be like a self-correcting thing that entrepreneurs consider the use of their product as they're designing it >> i think there may be regulation and maybe that's warranted.

if there is regulation i hope it's intelligent regulation. we're not off to great start in that sense but i do think more important than any potential regulation will be how companies -- the attitude that employees and executives at the companies have about their services the one thing that sheryl said i think is worth pointing out, she said frequently regulation entrenches large companies let's make sure any regulation we have, doesn't prevent the next facebook that's being developed hoeflply by two -- hopefully by two girls in a garage somewhere with totally different privacy virtues in that product design let's make sure regulation doesn't prevent that that's what the companies -- >> do you think that they mean that at the same time facebook is crushing snap, copying its fierce google accused by yelp and others of using search and manipulating it on the local level to block out competition so they say on the one hand, oh, we don't want bad regulation, but they're using their power in ways that the smaller guys -- >> well that's what companies do

they exert their influence to achieve -- >> sure. >> and i mean there is definitely a role for a conversation between the private sector and government about all of these things. the conversation has started as i said i don't think baerp off to great start, but i just -- i want to make sure if there is regulation it's intelligent regulation we have to make sure that startups and other -- like snap. yesterday evan said look we have a totally different perspective on data retention. i think -- i forget the phrase he used was, he said, you know, we don't -- we don't consolidate data we relinquish it or some such thing. that's built into their product design, is a more user centric view of data rights. let's make sure that competition isn't out reg xwlats glatsed. >> how is venture capital discounting this is this becoming more of the pitch process, explaining the risks around regulation and how your product may be used over time. >> the way it impacts venture capital, it's hard to get funding with a digital media

advertising business as you said the duopoly of digital advertising that is google and facebook. if you're -- i mean zillow sells ads to real estate agents primarily. it would be hard to get funded today with a business model around being in a vefrtscle marketplace, aggravating audience and selling digital audience in a facebook/google world. speaking of zillow you sell ads to real estate agents but you're buying and selling real estate seems like this is a riskier business. >> it's a new business for us. like netflix moving into original a business extension that leverages our data advantage we know what houses people want to buy and sell. we are buying houses in phoenix and las vegas and selling them in a few weeks light remodel, getting the home ready for sale and reselling it. we can premarket the homes to buyers they've got searches set up. as essentially a market maker in the buying of the home and reselling of the home we think we can build a new business. >> when netflix does an original

and bombs they just cancel it. you own the home. >> we do if it bombs if we over pay for the home we'll lose money. that's not our goal. our goal is to make money on these transactions >> that remodel has to be key because everybody wants to sell you a home for a little more than the estimate and everybody is going to want to buy it for a little bit less. >> here's the insight. we're in an on demand economy now. press a button on your smartphone, press a home, have food arrive and press a button and have something happen. the angst, the work, the stress that sellers have to go through to sell their home, they want someone else to alleviate that stress we are doing it. we think of it as a service to a seller rather than a home flipping source. >> you have bought a bunch but haven't sold any yet. >> one listed so far bought about 20. the first one has come out through the renovation, listed for $425,000 tell your friends. and the others will be coming out soon. >> all right spencer, a lot more coming from the code conference. great to have you here >> thanks. >> spencer rascoff of zillow

back downtown to the new york stock exchange. jon, thank you very much we'll head back out to you at the code conference when we return but first, rick santelli, what are you watching this morning? >> you know, i'm watching the stability that seems to have taken over the marketplace from all the volatility caused by the it jan fixed income market big headlines today. italy's politicians come back into fold. but maybe it's the politicians in brussels we should be discussing after the break imagine traveling hassle-free with your golf clubs. now you can, with shipsticks.com! no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination. with just a few clicks or a phone call we'll pick up and deliver your clubs on-time, guaranteed, for as low as $39.99. shipsticks.com saves you time and money. make it simple. make it ship sticks.

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i'm scott wapner what's coming up on the halftime report at the top of the hour. we are trading the bounceback for stocks and debating whether the fear in europe is just noise or something more. plus, new reporting on the fed's changing path. steve liesman along with those details. leslie picker, following the money on why some big-time money managers are hiring private investigators to dig up dirt on their potential targets. it's all at noon on halftime wilf >> scott, great stuff. we look forward to that at the top of the hour. 12 minutes away. let's get over to the cme and rick santelli has the santelli exchange >> good morning, wilf. all the headlines basically have the same thing written about them with regard to trying to put a face and an epilog on a wild ride that seemed to emily nate from italy and circumvented the globe. the stories, read something like this, europe's wake-up call for

italian politicians. that's basically what they said. i have an issue with that. now, granted, there may be a wake-up call for them and granted there may be some ongoing scrutiny about exactly who they'll pick for their next economy -- economic minister because, obviously, serona wasn't the man and that seemed to have been part of the catalyst as to how all this started to affect the marketplace and today, of course, we had a couple of auctions and they seemed to have stabilized the situation although i still would like to know how much the ecb played a role in those auctions and stabilization, but in the bigger picture, will the ecb actually begin to do more tapering in september. these are all big questions with global answers associated with them but back to my point, the wake-up call needs to be for the politicians in bruise sells in my opinion why? because in my view of what's going on in europe, it's very

hard after the fact to put a federal overlay of federal government, some type of federal taxation to be rejiggered and dispersed the way the u.s. does it because the order of how the eu was created just wasn't exactly optimum. the situation we currently have may be stable, but i guess the point i'm trying to make is, if you look at all the big issues that have affected the globe really over the last several years post crisis, it's this notion of how a country's sovereignty and the culture of the people have a say so in how the country's run versus what's going on with the unit in brussels in particular regarding europe and what they envision the future to be i think that that struggle is far from over and it will result in more expectations that are unrealized that show up in market pricing real quickly, the aftermath to this is that the euro versus the dollar is at a point right around 1.15 where history dictates it might start to

consolidate and create a pattern where the right side starts to form and if you look at it from the perspective of the dollar index, although a bit messier, and both, by the way, were three-year charts starting in june of 2015, it's messier, but you get the point. between 94 and 96, we have a lot of activity. now, as we start to break into the zone, just like we showed from the other side on the euro chart, we should be able to spend some time here now, if we don't, the momentum should appear rather quickly, and it's one of the scenarios where if the momentum drops most likely this is the response. you really want to watch the settlement, especially, for this friday wilf, back to you. >> great stuff looking forward to seeing you again later. still to come on "squawk alley," why some are calling for a split of amazon's chairman and ceo roles. we go live to the amazon shareholder meeting for that and what to expect from jeff bezos and much more from the silicon valley heavyweights at the code

conference quk leack in a couple minutes. don't go anywhere. do your worst, doctor. i will. but first, a little presentation. hijacking earth's geothermal energy supply. phase 1. choosing the right drill bit. as long as evil villains reveal their plans, you can count on geico saving folks money. fifteen minutes could save you fifteen percent or more on car insurance.

welcome back to "squawk alley. we're just moments away from amazon's shareholder meeting, and aditi roy is live in seattle, joins us with more of what to expect aditi. >> hi, there we're just moments away from jeff bezos addressing the shareholders, but outside here, a growing group of protesters. they're demonstrating on a number of topics and among some of the demonstrators out here just moments ago before he ducked in

was the reverend jesse jackson let's show you video of him before he ducked into the shareholders meeting he talked about how important it is and how heartened he was to see amazon adopting a policy to increase diversity on its board. he also said it's not right for president trump to criticize amazon this in response to president trump's recent tweets about amazon which have called the bezos owned "washington post" amazon's chief lobbyist and also said amazon is costing the u.s. post office massive amounts of money. that's not all among the protesters we expect to see here today are contract pilots that fly for amazon air you might remember they were also protesting at last year's shareholder meeting. those pilots work for atlas air, which amazon has a contract with they just came out with this video highlighting their grievances over wages and working conditions which they say is leading to growing pilot attrition retention and recruitment challenges affecting amazon prime we'll see if ceo jeff bezos addresses any of these topics

momentarily. in his letter to shareholders last month, he anounchsed for the first time amazon prime has moyer than 100 million subscribers and looking for more commentary on that including updates on the product road map amid the fact shares have skyrocketed in the last 12 months alone, it's gone up more than 60% again, guys. demonstrators behind me are voicing their opposition pretty strongly back to you, carl. >> aditi, interesting that amazon and walmart having their meetings on the same day thank you. aditi roy in seattle >> a lot more still ahead from the code conference in rancho pal palos verdes tune in tomorrow wh r itou interview with uber's ceo.

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and slowing innovation. with software-defined solutions, like hpe oneview, you can tame the it monster. hewlett packard enterprise. less complexity. more visibility. conference here in rancho palos verdes before the break, we were talking about mampgment structures at amazon voting structures got talked about last night antitrust, regulatory structures we're not talking about efficiencies in the cloud, or advancements in mobility or how many phones will be sold this

year >> it seems like there's been a shift and now everybody is asking questions about the tech companies that have grown so quickly, so fast we heard about amazon's shareholder meeting pressuring jeff bezos to not be both ceo and chairman, and snap and facebook controlled by the ceo >> you want to see this. at the same time, you hope you don't kill the goose that laid the golden egg >> a lot more later on today and tomorrow let's get to judge and the half. and welcome to "the halftime report." i'm scott wapner our top trach this hour, the bounceback for stocks. what are the fears out of europe, are they just overdone or heating up? with us, joe terranova, jon and pete najarian, and lori, great to have you with us today. let's begin with the rebound stocks are higher after posting their worst day in more than a month. maybe we should have kno