it is 5:00 p.m. in barcelona, 11:00 a.m. on wall street "squawk alley" is live ♪ ♪ good monday morning. welcome to "squawk alley." i am carly fiorina with morgan brennan at post 9. jon fortt live at the mobile world congress in barcelona. more from jon in a couple minutes, including his interviews with the vmware ceo we begin with warren buffett. talking the state of the economy, his stake in apple, and his thoughts on jerome powell

ahead of his testimony tomorrow. >> overall, the rate of improvement is tapered, but certainly hasn't flattened now, that can change next month and home construction has been disappointing. right now things are fine. there are stocks i would buy that we own nine and a fraction percent, and i may be selling a bit, they're repurchasing shares and i don't want to drift over 10%. but apple, i don't see myself selling. the lower it goes, the better i like it obviously. i don't second guess it. he is a terrific choice for fed chairman he was at the treasury in 1991 when solomon was in trouble. i saw him make a lot of good decisions for the united states government, he's a smart man,

very level headed. he understands both business and economics and i don't think you could have a better chairman >> also talked about stock valuations, whether or not equities are cheap or expensive. >> if you tell me 3% long bonds will prevail in the next 30 years, stocks are incredibly cheap because even, i mentioned kraft under 6 billion on tangible assets. interest rates govern everything >> all right so equities cheap, but not chief enough he has opportunity to go out and buy something. interesting contradiction. >> he told becky quick there had been a potential deal in the works late last year but that didn't materialize i think it has people guessing

what that could have been. also, noteworthy is the fact you saw some bright spots in the past quarter, bnsf, freight railroad seen it with the other railroads, seen as a leading indicator on the state of the u.s. economy, that kind of got my attention too >>a great window into the economy because of exposure to rails. cramer this morning said maybe his biggest homerun of late is work of railroads. >> speaking of tech, noting he hasn't sold any of his shares of apple. i think we're digging more into that in the hour starting now. joining us, another value investor with big positions in tech, $10,000 invested in his oak mark fund would be worth over 222,000 at the end of last year, far outfacing returns of the s&p 500. harris associates chief investment office for u.s. equities bill nye gren joins us

from chicago >> good morning. thanks for having me. >> i want to start with the broader take on the markets. the dow up 193 points, year session highs for today. coming into december and christmas eve, there had been talk that stocks and equities had fallen too far, too fast since then, that they've risen too far too fast what's your take on the markets more broadly now >> well, i think on one hand you can say did the market deserve to go up 20% from christmas eve, and we would say not much has changed. on the other hand, we would say the market shouldn't have fallen as much as it did from early november to christmas eve. if you look at that three to four-month period, not much has changed. stocks today sell in line with their long term average pe multiples. when they sell at average

multiples, they tend to be the best asset category. as mr. buffett noted, bonds look expensive relative to their history. so if you have equities that are priced in line with history and bonds that are priced expensive, it makes equities look like the asset class of choice. >> you're a value investor what's your take on tech now >> well, it's funny what we call tech we own a lot of things the market calls tech. netflix, alphabet, apple, but when we look at the companies, we think of alphabet as an advertising company, we think of netflix as a media company, and apple as a consumer electronics and services company i think because these are network effect businesses, because a lot of spending is not on plant and equipment but is on r&d and electronic processing,

more of the expenses tend to go through the income statement we think it makes gap income understate the value of the companies. for example, on netflix, you could look at that and say it is selling 100 times this year's earnings which makes it look very expensive, or say they look set to add 20 million subscribers that appear to be worth $1,000 each, and only have to spend a couple billion to do that really it is only selling about 9 or 10 times the value that we expect them to add this year on that basis, it looks very cheap to us. same way we used to look at cable tv companies 30 years ago. >> it is interesting to hear you say that about netflix it is not often we have people come on and look at this as more of a value play but i guess we have interest rates moving back to levels we saw earlier last

year i guess what is your long term view and how does it play into your investment in something like netflix that has a lot of debt >> frankly, netflix does not have a lot of debt they have about $170 billion equity market capitalization, only $10 billion of debt so it makes them very lowly levered relative to other companies. we like subscription businesses. we think netflix has been undercharging for their product in order to grow the competitive moat, and the scale of the company today with the number of global subscribers they have we think will be very difficult for anyone to catch. if netflix raised their prices to consistent with hbo now or sirius xm, you would see the stock look cheap on a pe basis >> bill, you like the banks. we look at some of your top ten holdings we know buffett widely exposed to them as well. sectors trying to get out of

correction territory, one of the last to do so after a tough december in terms of catalyst, what's going to drive the sector if it finds new favor this year? >> as long term investors, we've never been good at identifying catalysts. i point out that a company that's almost universally considered to be well managed, jpmorgan, sells at two times book value today, and banks like city bank, bank of america, wells fargo, allied financial sell at deep discounts to that those companies are generating a lot of cash, they're buying back a lot of stock if the market doesn't change the way it values those companies, we're going to see rapidly declining denominators, share basis falling quickly. if they don't grow top line value, value per share, should grow nicely in the next few years at those businesses. >> got to get your thoughts on

ge, given deal news to sell bio pharma to danaher for 21 plus billion. shares are up. it is a holding for oak mark fund do you like this deal? >> absolutely. ge is another example of what starting point do you say the move doesn't look like it makes sense. it was selling at half the current price christmas eve, but it is still beneath the price in october. we look at it and say if you look at all of the news on ge since october, it is easily in the positive column. biotech business that ge is selling is a valuable business, was not generating as much cash as value would suggest, and we think it is a very important step to identifying or highlighting the hidden value inside of ge's health care business we said all along there's a lot

of focus on power, and power just isn't very valuable in the ge picture today you have to believe health care is valuable, you have to believe aviation is valuable, and you have to believe financial services isn't going to be a black hole today's transactions suggest that even our estimate of health care value is probably too low and on our numbers we get a piece by piece value in the high teens per share for ge >> bill, thank you for joining us, giving us your take on a number of different companies and sectors. >> thanks. let's get back to barcelona this morning at thenobglobal wod congress how you doing? >> reporter: hey, carl, making some waves here's a huawei booth behind me, i say a booth, because they have four here. that is for enterprise we all heard about the u.s.'s

position on huawei equipment, concerned about spying by the chinese government but huawei is hitting back and most of it is about technology they talked about this foldable phone they've got, it is getting positive early reviews at least for design 5g phones as well. and huawei has lots of 5g equipment to talk about here the huawei chairman called out president trump's tweet on 5g specifically, implying it was admission of u.s. weakness in 5g which is not what the president had in mind. then the european carrier talking about huawei and pushes to ban equipment outside the u.s., saying that if europe were to do that, it would set back the 5g roll out in europe as much as five years i talked to intel ceo, you'll hear a little more of that, a lot more of that coming up

specifically about u.s., china trade. take a listen to what he said. >> we're all excited by the progress that seems to be made in the discussions between the u.s. and china we think global trade is good for the industry in particular we think over time as the thawing out of dynamics play out that it is going to open up opportunities. >> reporter: so lots of talk about geopolitics here, but plenty of talk about 5g. i talked to bob swan about that as well. hear that, more of our conversation in a few minutes, guys back to you. >> always good stuff, jon. i can't wait to hear more. jon fortt in barcelona for us today. when we come back, vmware ceo sits down with john. several are cutting off facebook access to data

stay with us yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees. no trade minimums. and yes, it's all at one low price. td ameritrade. ♪ we see eat emerson,mulating when issues become inspiration, creating a better world isn't just a result, it's a responsibility. emerson. consider it solved.

all of you. how you live, what you love. that's what inspired us to create america's most advanced internet. internet that puts you in charge. that protects what's important. it handles everything, and reaches everywhere. this is beyond wifi, this is xfi. simple. easy. awesome. xfinity, the future of awesome. i'm jon fortt here in barcelona at mobile world congress with vmware ceo pat gelsinger. >> hey, jon, a pleasure to see you. >> you have the cloud, you have been talking about it awhile people don't understand the rationale behind it, the idea of bridging 4 and 5g.

what does this allow >> what it is about, saying in the last decade and a half, w e we've gotten good at building clouds, why not build the telecom network like clouds for efficiency, agility. that's the idea of the telco cloud. people go to network function, virtualization, looking to 5g services, can't we have a newark tech tur for building the cloud. it is also flexible, scaleable, helps them do services between 4g and 5g, helps them bridge as they build new services. >> how big is this addressable market >> the data center market, the telco is 80% of the cloud market this is big. it is a huge adjacent market that largely was never touched before we're excited about that and if you think about what

we've done, jon, it is about building a rock hard infrastructure that never goes down because data centers, businesses, banks running it, hey, telco networks are rock hard we find a new opportunity. >> we started to talk about 5g roll out in terms of timing. a lot of cities in the u.s. from at&t and verizon they were talking about different roll out paces, but i'm not clear on follow on effects on software and networking at what stage that starts to ramp to a 5g effect. what should we expect? >> i said i think 2020 is the year, and i think when you feel a show like this, everybody is gearing up, trials are under way, the early markets, test cases, maybe we'll do an edge use case here or fixed use there, i see that 2020 is where

it will happen right now, the national anthem is playing next year the game gets started. >> geographically, u.s. and china are talked about as the strongest markets. interesting, the vodafone ceo says if huawei is banned in europe, could set back their roll out as much as five years what's your take on controversies around equipment and impact on the market you're looking to build into? >> it is hard to say how much it will impact. people that have large positions with huawei today, it becomes easy to add 5g onto it it is dependent on carrier and market our view of what we're trying to do with virtualization is minimize unique dependency on any particular hardware market part of our value proposition helps customers navigate through 4g to 5g transition as well as picking hardware vendors that's what that layer does.

we think we help customers vodafone is a customer we're working with >> i hear from ceos, we're in a period people are buying for efficiency rather than growth. still buying, but focusing more on cost savings, perhaps signaling a slowdown are you seeing that as well? >> we think the opportunity is actually both. you have to have efficiency. if you're going to be a cloud, you have to be efficient that helps the bottom line, building more cost efficiency, operational efficiency ultimately it is new services that 5g will introduce. >> have you seen a shift in customers, not just 5g, overall what you're offering, have you seen a shift in conversation, the sale, close, toward being more efficient versus i am looking to go after new opportunities? >> we see both, but efficiency is generally coming before the discussions. if i don't have that, i'm not

prepared for rolling out new services because i don't have the architecture and scale it has to be both, but generally efficiencies come first. >> want to ask about the search for talent in silicon valley, the labor market is tight. is it getting tighter or in the same groove? >> i would say we're pretty much the same we feel like we always have to compete for talent, every day of the week as we have gotten more prominent, i feel we're a more attractive place with some of the other controversies going on in the valley, people are excited to be part of the culture. >> speaking of culture, i want your take on amazon new york city you have been expanding, atlanta is a city where you've done a bunch of expansion have the rules changed or play book on how to approach a city in this environment given the

politics frankly >> i think for a company of their size it became highly speculated we're not at that scale, but everybody is looking, saying okay, are you good, do you do well and do good, are you a culture that we want, and clearly in a bit of a tech lash environment, there's more scrutiny on these going on all of us need to navigate clearly as tech has become a bigger portion of the dow, the bigger portion of people's lives, the expectations on us as an industry need to go up commensurate with that, and we need to respond commensurate with that, which i don't think we've done yet as an industry. >> pat gelsinger, talking about the ramp up to 5g. appreciate it. morgan, back to you. >> jon, thank you. fascinating interview. shares of vmware up a half percent. heading to break, look at the worst performing stocks in the dow so far in today's

session. more "squawk alley" straight ahead, including more from warren buffett don't go anywhere. >> i'm relieved at the idea there's still some chance that sense will prevail it is bad for china, it is bad for us if we get into some kind of trade war if you're turning 65, you're probably learning about medicare and supplemental insurance. medicare is great, but it doesn't cover everything - only about 80% of your part b medicare costs, which means you may have to pay for the rest.

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welcome back to "squawk alley. european markets are set to close. seema mody has a look at today's action >> european markets setting to close, following a positive session in asia on the latest trade headlines. but with european markets higher, london equity market is the exception, due in part to poor results and weak 2019 guidance from global gold mining company. that comes amid a volatile trading session, due in part to brexit related headlines donald tusk said the eu is

considering telling theresa may if she can get her brexit deal through by march 29th, planned departure date, britain will have to stay in the block until 2021 he urged may an extension would be rational, may pushing back the vote on the deal to march 12th let's look at the italian banks. a strong session for a number of financials there after italy avoided a credit downgrade from fitch, holding a bbb rating. in italy, banks are large holders of the country's debt. it is welcome news carl, back to you. >> seema mody on the european close. let's get a news update, sue herera is back at hq. >> good morning, carl and everyone here is what's happening at this hour vice president pence arriving in colombia where he plans to have his first meeting with the u.s.

backed leader of venezuela, juan guaido, this after venezuelan troops backing nicolas maduro blocked convoys of humanitarian aid from the united states. r&b singer r. kelly walking in a chicago courtroom this morning for a hearing in his sexual abuse case, this after spending the weekend in jail because he failed to pay his $100,000 bond. he pleaded not guilty and was assigned the judge that will preside over his trial. the supreme court throwing out an appeals court ruling in fai favor of woman's equal pay claim because the judge that authorized that decision died before it was issued and they faulted that 9th circuit decision to allow the judge in poor health to participate in the ruling. and prices at full service restaurants are going up, according to the labor department in january, restaurant prices rose 2.7% from a year earlier, well above the 1.6% rise inflation. officials say rising rent, insurance, labor costs are now

passed on to the consumer. you're up to date. that's the news update this hour carl, guys, back downtown to you. >> something the viewers already know thanks when we come back, several popular smart phone apps cutting off apps to facebook over data sharing practices. kara swisher will weigh in on that. major averages are duking it out. don't go away. so, servicenow put your workflows in the cloud, huh? mmhm. your employees must love you. [ chuckles ] thank you. you could say that. i love you. servicenow works for you.

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restaurants come to you. delicious at your door. download doordash. first order, no delivery fee. welcome back breaking news on venezuelan sanctions. kayla tausche. >> reporter: they're sanctioning four governors of venezuelan states in line with the maduro regime two of them share a border with colombia where clashes broke out over the weekend as they blocked humanitarian aid from the united states from arriving the release from treasury says the new rules block any dealings with individuals or any entities in which the individuals hold a more than 50% stake, but it emphasizes that sanctions are meant to change behavior and they're not intended to be permanent. this comes as the vice president, mike pence, is heading to colombia to meet with the opposition leader, juan

guaido this is a way for treasury to increase pressure on maduro allies ahead of that carl >> the vice president tweeting about that even as you speak, kayla. thank you. watching some of the venezuela news today. a new wave of apps cutting ties with facebook over user data collection. "the wall street journal" reports thatseveral fitness an wellness apps stopped sharing sensitive information related to users' health. joining us, recode editor at large and cnbc contributor kara swisher. good morning, good to see you. >> good to see you >> what was your reaction to the initial journal piece in light of everything else we heard regarding data privacy of the company? >> well, you know, there you go. i mean, the thing is in this case it is complicated because these apps were sharing to get better ad targeting. what they wanted to do was use the facebook platform, and has

the best ad targeting tools to get more users, which makes sense except it is sensitive information. in this case it is not clear what facebook knew and what they were doing but they were availing themselves to tools that allow them to do so it is pretty complicated, in this case looks like facebook wasn't watching, wasn't sucking them in saying give us the data, they just did. the same issue i have been talking about, sloppy management of the platform, meaning they don't know what's coming over or they're not as responsible for what might be coming in. secondly, people want to go there, that's where the people are, they want to use these tools. it creates a situation for much abuse or lack of knowledge of people of what's going to happen with their data. in this case, it is sensitive data, ovulation cycles, health information, things like that. >> kara, it almost feels like we're in a soap opera when talking about facebook and the

latest situation involving users and consumer data. i think there are a lot of users, consumers, that don't realize there's the facebook app and consumer facing apps and then other apps for developers where their data is being collected and used as well, right? >> yeah. super complicated. the goal, i was trying to boil it down, what it is, it wants to get better ads, more people to use the apps so any data, they don't care what data it is in a lot of ways, not thinking about it. in this case it is sensitive data you don't want to share i can't imagine anyone wants to share their ovulation cycle with anyone at facebook unless they want to or something they get out of it. again, it is the clarity, the idea of privacy which i'm thinking of a lot. it is not that you have no privacy, because you don't, but what control do you have over your data, that's what we have to get at, you don't have

control over the data or it is moved to facilitate another app that you have nothing to do with that's the confusion. >> given the metrics they gave us last quarter, kara, is it clear that people, consumers, either don't care if they're going to delete it, they've already done it, and for now they're going to use these to manage the way their data is used >> i don't think they know i don't think they know. how can we individually explain what this stuff is doing, it is done to facilitate better ads. mark says we want to give you relevant ads that makes sense but at the same time, requires an enormous amount of data consumers don't know or don't care is not the argument people didn't know or care about seat belts maybe and they passed laws anyway. they don't know or don't care about smoking but they put the warnings on the side that's not really, shouldn't be the question it should be is there reasonable

use of your data and enough knowledge of what you're doing it is so simple, yet so complicated. you should have control of your data, especially sensitive information, especially around health, movement, location, what you buy, things like that should be subject to your knowledge or at least you knowing where it goes in order to bring you ads or services that are free. >> your seat belt analogy, you use the words, pass the laws, is that still where we're headed in this case? >> i think so. i think a privacy law has to pass this year i'm going to make itmy persona goal to get congress to pass a privacy law that's intelligent and smart. there's a lot of struggles, california has one a number of states have different ones will it be strong enough or will it be more toothless than the california one, how will the european one, you know, this is a global issue but we should have a national privacy bill in this country that's smart, intelligent, and takes in account the needs of

consumers first and foremost, and also thinking about how to create good businesses out of this that are fair it is not one or the other, but for sure your ovulation cycle shouldn't be subject to going to facebook without your knowing about it, whoever sent it and however it was done. >> kara, until you get that national privacy bill, if we get that for consumers that maybe don't understand all of the different ways their data is being used, is there a way to educate themselves well at this point in time or does it require more disclosures from companies that we don't have >> yes, exactly. you can't figure it all out yourself you want to use these services, they say it is free. i think facebook has to take more responsibility for the information that's flowing over its system and app users should be very careful about data it shares, even if it is getting something back in return, such as the ability to target people, attract new users. they're given this responsibility to protect your

data and they should do their job, self regulation themselves or much more onerous regulation later. nobody wants that. it is just responsible usage should be first and foremost at app companies and definitely at facebook. >> remind me, are you still on the platform, the core app >> no, on facebook i hardly use it. it is very bloated i don't like it as a product that's just it i use twitter as you know. i don't use instagram very much any more i use what's app sometimes when people are traveling but i definitely try to share the least amount of data with companies as i can i pay a lot of attention, but it is still hard for me i still don't understand it. i put no no no no no all the time until i need something. >> busy lives, a lot to think about. we'll watch it with your help over time. see you soon kara swisher

40 billion in two year nodes up for auction moments ago rick santelli has a gauge of the demand >> demand was a bit above average. let's go through the internals it is the first of 113 113 billion in treasury supply, two auctions today the first we're discussing, results out. two year note auction. 40 billion the yield, 2.503 so priced pretty nice. from there, it becomes extremes. 38.6 on indirect, that's the lightest since christmas of 2016 22 points is the heaviest, best since august of '16. that split decision to cover 2.5 is why i gave it a c plus. let's get into the thick of it i had peter bookfar on, we discussed cost of living to many humans is what they experience

when the fed talks about inflation. the fed tries to seat inflation, the average person getting seated to pay for everything i understand the notion that you can have extreme levels like the '70s and '80s. the problem is the effect is way too extreme with effect to cementing this policy forever, even though there are many large economies like japan who have tinkered in these areas and failed, and failed and failed over decades so what's the answer all i know is that the signals from central banks continue to get murkier and more smoky, especially as you ramp up globalization, we're holding hands together for contraction and expansion. seems to be more of the former at this point. let's dig into the balance sheet. there's something about the balance sheet that reminds me of analogies we had with regard to

stocks, when the fed's presence was more stimulative remember when good news is bad news, bad news is good news. with respect to the significaal the balance sheet closer to stoppage than many hoped or thought of in the past, well, red becomes the new green. and i'll tell you why. fed bullard made a couple of comments last week, one of them that u.s. balance sheets and the policy may effect japan and other economies with zero interest rates around the world, the signal it sends. well, exactly. but the problem is that as we stop, other countries like japan and europe who had a couple of taps of the brakes, but the car is still going way too stimulusly fast, it is going to send a signal to them, most likely to stop trying to tap the brakes now, this isn't our fed's fault but i think in this instance bullard really nailed it the problem is just like peter

bookfar described, we have signals going back and forth what's good for one country isn't good if everybody does it in large helpings. what's more, once large helpings are out there, it is not like ice cream, it doesn't melt away. it is like dry ice it lasts and lasts i'm not sure how we do the right thing. doing the right thing sends signals for other countries maybe to continue doing the wrong thing. carl, back to you. >> well said, rick complicated world. rick santelli in chicago when we come back, more from jon fortt's interview with intel ceo in barcelona hear what bob swan says is ahead for his company. his first television interview since named full time chief. market, dow up 189 be right back. we see harnessing natural gas unleashing the promise of clean energy. at emerson, when issues become inspiration, creating a better world isn't just a result, it's a responsibility.

emerson. consider it solved.

i am scott walker. here's what's coming up. debating all things buffett, from his call on stocks to apple and much more. former fed chair paul volcker with a warning about banks we'll tell you what he said and what it all means. and most of the investment committee owns the call of the day. debating microsoft that stock approaching another new high, all at noon on the half 15 away. that means, morgan, we'll see you shortly. >> we'll see you then, scott, thank you. let's head back out to barcelona to jon fortt

jon? >> reporter: morgan, been talking about this interview with intel ceo bob swan, his first interview since no longer being interim ceo, the permanent ceo. first broadcast interview. we started talking 5g. base stations are a big area for intel in 5g. they expect to gain as much as 40% market share in 5g base stations in the next couple of years. now, intel talked previously about their modems for smart phones and 5g. those are not going to be ready until the second half of this year, behind qualcomm on that score but we talked about more than that, we talked about the economy in general, geopolitics. take a listen. >> i think we're all excited by the progress that seems to be made in discussions between the

u.s. and china, we think global trade is good for the industry in particular, so we think over time as thawing out of dynamics play out it will open up opportunities. meantime, we see real interest in technologies being developed, a little bit of hesitation how those are purchased and how those technologies are deployed. we're encouraged by the recent dialogue >> the fed chair jay powell on capitol hill tomorrow and the day after. what would you tell him how the first couple months of this year looked from a global demand perspective to you >> we just finished a record year for the company in 2018 we had a record year in 2016 a record year in 2017. a record year in 2018. and our expectations for 2019 is yet another record year, so, so

far we're excited where we are as a company and where the global economies are sitting. >> the pc market, does that continue to be steady, the way you expect to see it play out so far? >> as you know it is a huge part of our business, roughly 50% of our revenues last year we saw really good growth for the first time in a long time. as we think through the course of this year, we think the pc market is relatively stable, maybe plus half a point or minus a half point, which for our business is very good. explosive growth is in the data center arena if we can have a stable pc business while we get explosive growth from collection and data center businesses, that plays out well for us. >> good environment for you potentially m and a wise how do you feel? >> we're really focused on integrating the two relatively big and important acquisitions

we have done the last couple of years between altera which expands the role of the products we sell to data center and network environments. >> fpgas that you announced? >> i hope you hear about that in your talks altera is very important for us and networking and mobileeye, completed almost a year and a half ago, demonstrating explosive growth integrating the large deals we've done >> talking about fpga, field programmable gamma rays, chips you can customize to do what you want in the old school, intel was about x 86, here is what we make, you need it, you take it they're trying to be more flexible in the 5g environment we'll see if that helps them gain shares in areas they

haven't had it before, guys. back to you. >> jon, great stuff. shares of intel are up 1.8% now. some really interesting comments about 5g across the board so far in your time from mobile world congress looking for to more of it so mue of it as the week unfolds. more from the oracle of omaha coming up. stay with us >> i'm amaze d that they didn't do a recovery. i'm amazed that rates world wide are who that they are. trillions of trillions of dollars and negative interest rates. ...or trips to mars. $4.95. delivery drones or the latest phones. $4.95. no matter what you trade, at fidelity

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warren buffet sitting down early this morning on squawk box. among the many topics the two discussed was amazon pulling its hq2 plans from new york city and the impact it will have. >> amazon will complete plenty amazon's going to affect negatively the business of many, many, many companies in every state including new york

as jeff bezos said, your gross margin is my opportunity they both got to the alter but the dowry was changed. i don't know all the the details. the public officials really can't necessarily be the last say where as the company says it, you have to deal you have to deal it's unable that day if you have a bad marriage, it's better to find out before they pronounce you man and wife than ever they're both hurt a little bit by the fact it went there. it makes people think twice about doing a deal

it hurts amazon a little too >> yes, that was warren buffet talking about amazon's decision to pull out of hq2 i like that analogy. i guess i don't like it. you want to find out sooner rather than later given how all of this shook out. also kind of interesting to hear him say this could hurt amazon a bit as well as the image, initially of new york city >> governor cuomo over the weekend said it's the biggest tragedy he's seen in his li lifetime in politics the whole thing makes him sick to his stomach also just interesting to get

sthe these from charlie quaker as well you have some of these cities that are through their policies kind of knocking favorable to older people and pushing them out and that idea of how you balance your budget as a state how you do business et cetera. >> absolutely true we're up 180 right now we're back in less than three minutes. (vo) we're carvana,

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. tomorrow don't miss our coverage of jerome powell on capitol hill former chair yellen holding no punches when asked if the president has a grasp of macro policy when asked she said quote, he does not i doubt he would be ail to say the feds goals, he's made comments about the fed having an exchange rate objective in order to support plans or targeting the u.s. balance of trade and i think comments like that shows lack of understanding of the impact of fed on the economy and appropriate policy goals >> i don't think we have heard her be that specific about the

president in a while >> no. certainly one to watch as we go onto these two days of testimony from the fed chair powell. we got the second north korea summit another busy week in earnings. the one thing we don't have on tap is the deadline for the u.s.-china situation >> tonight etsy, pot belly, hertz. let's get to the judge thanks the biggest question now is the rally sustainable or growing more vulnerable? it's 12:00 noon. this is the halftime report. >> the dow's path to new highs the blue chip stock leading the way and where our desk sees opportunity. plus the oracle of omaha speaking exclusively to cnbc today. he says stocks are still attractive he's naming names. we'll debate them.