♪ good monday morning. welcome to "squawk alley." i am carly fiorina with morgan brennan, jon fortt at post 9 of the new york stock exchange. we have an awfully big show to get to the ceo of nvidia is with us in a few moments exclusively on the company's $7 billion acquisition. kara swisher, why mark zuckerberg is so interested in privacy all of a sudden, and bottom of the hour, secretary of energy rick perry sits down with brian sullivan we begin with another special guest. stocks are higher coming off the worst weeks of the year. we are joined in another cnbc exclusive by john rogers good morning good to see you. >> good morning. i wou >> i would love to get your temperature on sentiment s&p was denied 2800 again last

week, yet a dip like today bought aggressively. what do you make of that >> i continue to think bathere' lot of negative sentiment, so much conservatism. people remember the financial crisis from ten years ago. we think when there's negative sentiment, it is a great time to buy. >> how do you process data coming in from around the world that suggests a global slowdown and potential risk the united states is caught up in that? >> we don't see it we're seeing here in the united states we talk to our company management each and every week people continue to be highly confident. they're telling us that sales are coming in greater than expectations and equally importantly, balance sheets are in line. people are not overleveraged if we have a dip, the companies than handle it we're optimistic. >> it is interesting that nvidia announced intent to acquire

melanox. it needs chinese approval. it is the kind of deal like qualcomm when they tried to buy hp what do you think the market is trying to show us? >> peoplehave confidence in th american economy and worldwide economy, even if there's a slowdown in europe, things are strong fundamentals are strong. people are willing to make strategic acquisitions and take advantage to grow their enterprise when you see deals like this happening, it is a confidence booster for the overall market >> john, you focus on small and mid size companies the russell 2000 is up 13% it underperformed in the past month. what is your pulse on small caps now? is this overdone or do you see value to still be had here >> we're still seeing pockets of opportunity in small and midcap range. there really are things we think

are quite cheap and sectors that are entirely cheap the media sector continues to be way out of favor we talked in the past about our favorite names there madison square garden network, meredith, great outstanding businesses some financial services company sectors are still quite cheap. we love kkr, we think lazar is particularly cheap in this environment. >> john, the fed chair sat down with cbs in an interview, basically once again reaffirmed no need to change rate policy here right now do you think that's the right move >> i think so. i think keeping rates low will help sustain the economic recovery i watched "60 minutes," it gave me confidence. i woke up this morning thinking the markets would be strong. and interest rates are so critically important how you value businesses look at discounted cash flows, low rates make such a

difference it is the right thing they're doing. >> john, you mentioned media names and some financial names, even in some real estate i think that you like. i wonder though, other sectors like a move in home builders, for example, do you think that's over or can that continue? >> we think there's great opportunities in the real estate related companies and home builders we own companies like simpson and faf, companies that benefit from housing recovery. still think there's a lot of millennials renting that will become homeowners as the economic recovery gets stronger and stronger and confidence builds. >> so the argument that the new generation is saddled with too much student debt and not buying into the first time market like their previous generations, you don't buy it >> i don't i think people will go back to normal people want to own their own homes, it is an important part of america's history and culture. >> how much risk do you see,

john, in politics as 2019 continues to play out? some weighty controversial comments from senator elizabeth warren on breaking up big tech on one hand. i suppose some might think that is beneficial for smaller companies, but on the other hand, that's some heavy handed government intervention she's talking about. >> well, i don't think elizabeth warren is going to get any traction i think this move to the far, far left for a couple of candidates like elizabeth warren, that the american people will see that's not great for the economy of this nation and so i think we'll end up with a more centrist democrat that will lead us, have a chance to take back the white house in 2020 i'm optimistic about this. i think the bad news that comes out of the headlines will ultimately help the democratic party if they have the right nominee to drive us in the right direction. >> given that we have seen outsized performance in big cap tech names, and that's what led

broader markets higher this year, you expect that to continue >> i actually don't. i think we had a great move there, but i still think the best bargainers small, mid sized face our favorite company steri cycle, making sure medical things are removed from doctor offices, dentist offices, get it moved safely, we think that's the kind of business that will do well as people discover smaller names, mid size bargains, they'll be great performers going forward. >> john, always good to get your insight. you're watching everything we'll see you next time. thank you so much. appreciate it. john rogers helping us kickoff the hour. shares of facebook up 2% this morning mark zuckerberg announcing his privacy focused vision in a blog post last week, focusing on the private messaging platform the next guest arguing this is

not as groundbreaking as the social network may make it seem to be. it is the subject of her latest column tied eld facebook just shop lifted snapchat's best idea recode co-founder kara swisher joins us big tech feeling the pressure from the likes of senator elizabeth warren want to talk to you about that, kara first, let's start with your column the line that jumped out to me is the big take away, the penny finally dropped for mr. zuckerberg, that messaging and social media are different to users, as much as he tried to force them into an unholy mush what does this mean in terms of the facebook strategy moving forward? >> it will be interesting to see how they monetize this compared to the business they have now which is lucrative the idea of posting, putting advertising, targeting advertising next to it it is a great business, it is just that younger people don't want to do this.

they want to be messaging. i used the example of snapchat, but what facebook is trying to do is have qualities of snapchat with the success of we chat in china so they can attract more young people to the platform because that's the number that's falling off and that's the critical number for facebook so they're pivoting, that's the right word to use here. >> is there any reason to think, kara, given how much snapchat sold off in the last year plus to think that facebook would try to buy them again? >> i don't know about that i don't know if they would sell to facebook. that's not a great relationship, given how much facebook has already taken lots of ideas from snapchat, like instagram stories, snapchat stories, all kinds of things they are borrowing, i'm using that in a nice way from snapchat i'm not sure if that would be possible on the other hand, what they can do is borrow ideas and that's what's happening here. everything in thatblog post wa something that evan spiegel, the

ceo of snapchat has been talking about for years and has been doing, it is just not executing well i used the comparison between bill gates and steve jobs because apple was in dire straights for a long time, even though jobs' ideas why the correct ideas and he eventually pulled it out, but one thing bill gates was great at was execution. that's why microsoft ascended way back then. it is hard to remember that now, but it is a similar dynamic in my opinion >> kara, seems like when facebook talks about privacy, it is not necessarily the same as when snapchat talks about privacy, specifically because facebook has already got all of this data on the social graph, on people, who they're connected to seems like when they pivot to privacy, maybe what they're trying to do is keep people engaged at some level and they get what's valuable. is this really going to change the users' experience that much if facebook talks more about privacy and having more privacy

focused products >> we'll see the proof is in the pudding. i interviewed the competition, the eu competition head, she talked about that. she said we'll see if they do it they can talk about it all they want, let's see if they do it. obviously she's very down on hour how facebook treats data of users, and is effective in europe about holding them to account. the question is i also interviewed amy klobuchar, and even she talked about if they're pivoting to privacy, they better be sure that's what they're actually doing if it is just him talking about it, using itbecause it is the thing to talk about now, that's different than they make significant changes to their business that protects the privacy of users >> i'm glad you brought up that interview. south by southwest, one of the things getting a lot of attention is that proposal from senator warren to potentially break up the biggest tech

companies. how is that playing out among the tech community and silicon valley now and would something like that have a chance in heck of becoming reality? >> well, they love it as you might imagine. one of the things i say, they're vomiting over the issue. all these proposals, the billionaire tax proposal, the idea to break up big tech, regulatory thing, i think they're going to welcome some kind of regulation that isn't that the breaking up part, i don't know even the commissioner said it was a last resort. i don't think senator klobuchar thought that was the first thing we should do, but i think smart privacy legislation is one thing that's on the table. the idea of holding companies to account when they violate things, when hacking happens that they have to tell users immediately. there's some low-hanging fruit that does need to pass in congress, regulatory all over the globe. that's what's going to be more to the point and then watching how the

mergers happen i can't imagine now facebook could buy much of anything, you talk about snapchat, it would be scrutinized heavily in this congress at least. now that the agencies seem to be getting more teeth, it will be more difficult for tech companies to do anything significant. >> to your point, seems like buying snapchat is redundant once you've taken so much of their work and today, another upgrade of the stock as they look rat dau, mau metrics. even on the core map it is still pretty good. >> it is for an executional point of view, mark zuckerberg is similar to bill gates. remember when he was hitting all cylinders when he was ceo of microsoft? i always look at these things, carl, i'm super old, i have seen it happen before these things can go up and down, not quickly, but in terms of how innovative the companies are

one thing that happened to microsoft besides the antitrust monopoly trial is they stopped doing innovation, they were focused on other things and making great products. to me, products always win out eventually the jig is up if you don't keep improving your products i think facebook products, he's thinking very hard, i know they are at facebook, whether their product is adequate for the next ten years. and that's a good thing to think about. i'm glad he is thinking about privacy by the way, at least he is rattled over the issue, so that's not a bad thing for facebook which has the most information on the human race ever compiled, thinks about privacy, it is a good thing in that regard at least. >> since you did just get back from south by southwest where you talk about innovation and what's next and what's being developed, your take away to investors and what they should keep an eye on for the future. >> there's not much in the

conference used to be a place for cool startups i think the political stuff at south by southwest was remarkable this year and you obviously did talk, there was a lot of talk about regulation represent i have ocasio-cortez was there, john kasich was there, all kinds of people there talking about tech and tech issues which was fascinating to have the politicians there they were all there. it was an interesting tone to set for it and at the same time, i think the idea of the impact of the internet was still being discussed by everyone. i did an amazing interview with kathy griffin, a comic, talking about what happened to her when she put that photo she did of donald trump, which was very controversial, went viral. she was put on the do not fly list, she was sort of targeted by bots. it was fascinating i think the impact of tech is what was discussed and the question is what needs to be

regulated and what doesn't and i think that was a great -- it is great to have this discussion, let's just say that. that's what the commissioner talked about, that we're talking about the issues is astonishing and maybe something really smart can be done to preserve innovation and protect consumers. that's the goal that's most important. >> i'm sure we'll continue to have that discussion kara swisher, always great to speak with you >> thanks. when we return, nvidia making the largest acquisition ever, purchasing chip maker mellanox the ceo jensen huang joins us after this break st wh ayitus what do you look for when you trade? i want free access to research. yep, td ameritrade's got that. free access to every platform. 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,

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like never before store. the xfinity store is here. and it's simple, easy, awesome. welcome back the big deal of the morning, nvidia announcing intent to buy mellanox for $7 billion. it is nvidia's largest acquisition to date. with us now in a cnbc exclusive, co-founder and ceo jensen huang. jensen, good morning great to talk to you again it has been too long >> jon, it is great to talk to you. this is a big day. excited to be on here with you >> it is, very big lay this out, the case for the

deal mellanox specializes in technology that moves massive amounts of data around within computers and more important between computers. five years from now, what kind of advantage do you think this is going to give nvidia? >> as you know, the data center has become the most important computer in the world and the work loads that's transforming the data center, artificial intelligence, machine learning, data analytics, these applications have so much data, require so much compute, they toe don't fit on one server or computer you have to break the problem down into a bunch of computers so the thing that's exciting is that the computer no longer starts and ends at the server. the computer in the future would extend into the network. the network is going to become intelligent, the network is going to be smart, the network is going to be part of the computing fabric and what we want to do is we want to extend our computing

reach from the server where we are today out to the entire data center this is a very big moment for us, we are doubling down on data centers. we think it is the most important computer of the future and with this we could work together with the mellanox team who are as you know world class as high performance computing inter connects for networking and storage. we could work with their team to build the future of data centers, architect the future of data centers, creating data center scale computers >> tell me about competitive advantage. how much of this is about software mellanox remote direct memory access software you praised, it allows a bunch of computers to act like one, really low latency, really fast how fast does that get applied is that something that you keep some of that secret sauce for

yourself in platforms or broader supply to the data center ecosystem. >> we're going to keep everything optimized but keep everything open as well. you look at the way we work, we develop a really integrated and optimized stack, but then we atomize it, make it available to the ecosystem so that you can decide to mix and match and build the type of computers you like the reason for that is that every customer has different needs, data centers have different legacy and it is important to inter-operate in the world of i.t., so we will continue to do all of that what makes this combination so special is we are combining two companies that are best of breed. we're the best at accelerated computing, they're the best at high performance interconnects for network and storage. now the future of computing will

require us to architect across both of these spaces this combination makes a ton of sense. we're going to continueto keep it open and work with the entire ecosystem of component makers and systems makers and hopefully we can advance the industry as fast as we can >> i have to ask about the mechanics of this coming together this will require approval in china. a deal just like this basically got busted up because of that. i shouldn't say just like it, but qualcomm wanted to buy nxp, couldn't get it done relations with china have moved on a bit since then, but you have a $225 million breakup fee here what gives you the confidence this deal can get done >> our two companies of complementary, and we build

computers, and so the nature of the work we do is very different and our businesses are very different. so what's going to happen with this combination is we're going to be able to create better solutions for customers and the industry and advancing innovation is welcomed by the industry i think that the ability to innovate faster, to advance their technology faster, i think it will be welcomed by regulators and customers >> jensen, this is morgan. when i hear you talk about the idea that the computer doesn't end with the server, now it is expanded into intelligent networks, i mean, i think about what the implications of that mean from a security standpoint. how are you thinking about it and how are you thinking about it in a day and age where now we have reports the u.s. is telling germany it would limit intelligence sharing if it allows huawei to build that 5g network there, or when you have department of justice pressing

charges against chinese companies for ip theft where semiconductors are concerned. >> this is very different than that this is not network in the public network, this is network inside the data center in fact, if you look at network traffic, what the industry calls east and west basically network traveling inside the data center, it is growing exponentially whereas the network that's north and south, data that's going outside the data center, public data centers, public networks, that's growing approximately linearly so what's amazing is the data centers of today are essentially large compute engines. what we're trying to do, what this deal is about is being able to innovate at the data center scale within the data center it is budget inside the data center, not about public traffic

or networking but it is networking in a compute networking perspective inside a data center, and it is about architecting it in such a way that in the future we'll think about the entire data center as a coherent compute engine instead of hundreds of thousands of servers working separately connected together it will be one giant coherent compute engine, and architecture implications are very significant, and we want to get ahead of it, build a future. meantime, in the meantime, mellanox footprint in data center is larger than nvidia because of their history in data centers and enterprise computing. in the near term, we look forward to accelerated growth as we enjoy the footprint that they serve and there are areas we have a larger footprint than

them, they can enjoy the footprint we serve. >> points about the architecture make sense it has been a few months where investors are questioning overall growth trajectories, whenever there's m and a, people raise their eyebrows, say what is nvidia seeing that would make a deal like this necessary what did you tell them >> well, a deal is done when the timing is right. i have loved this company a long time we worked with them in supercomputing centers, built the world's fastest supercomputer partnering with them we use mellanox in our data centers and servers we build called dgx we sit next to them in projects all over the world the opportunity here is really about growth it is really about growth and data centers is about us doubling down on data centers.

otherwise, on a stand-alone basis, our thesis is sound as ever the future is about acceleration, work loads is about ai and machine learning, fits right into nvidia's hands. >> have to ask you about waldman, co-founder of mellanox. certainly a very important player to have on your team, but he's also an entrepreneur. how long is he going to stick around what's the agreement between the two of you, and if you can, quickly, how long did it take for the two of you to get together and make this happen? >> well, i have known e.l. for many years, i love the guy he's definitely a visionary, an pu entrepreneur, a great leader he's going to stay he's going to continue to build our site in israel this is one of the world's great technology centers they have amazing employees,

many of whom we worked with over the years, building supercomputers and building dgx, working on software stacks together this is a friendship we have enjoyed for many, many years and i'm looking forward to working with e.l. for many more years. i think ultimately it is about us coming together to build one of the world's great companies >> much more to talk about on the deal, jensen never enough time. we have to chat again soon on the phone. >> can't wait to see you, jon. >> jensen huang, nvidia co-founder and ceo. everything on the dow is green except for boeing which trimmed losses to minus 7% dow is up 87 don don't go away. so grant met his insurance: you are caller number 12. which didn't quite cover the steinway. but what if he'd met pure insurance?

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getting headlines on the fiscal 2020 budget let's get to ylan mui with details. >> the president's budget is public a lot of the top line numbers we have been reporting all morning

are officially confirmed $2.7 trillion in spending cuts over the next decade a $750 billion request for defense spending in fiscal 2020, that includes $8.6 billion for president trump's border wall. the budget is essentially a white house wish list, so it also includes proposals like making all tax cuts permanent, new work requirements to qualify for government benefits like medicaid or food stamps, and reductions in foreign aid. here on capitol hill, the president's budget is already doa. this is from the chairman of the house budget committee, john yarmuth. with cuts that leave our nation less secure, the trump budget is as dangerous as it is predictable. it has no chance in the house. these are some opening sin what

is likely to be a long, protracted fight on spending that will last through the fall. it is not just democrats that are upset about the budget, some republicans are even uncomfortable with the dramatic level of spending cuts and the fight potentially over another border wall. but guys, this is something that is very clear, the president says he is going to fight for in this budget. back to you. >> ylan, i know there's still a lot of details here to work out, but in terms of the $750 billion top line defense number, there are some expectations with analysts and experts that what we could see as this is negotiated over the year is a deal that's a two-year deal, given the fact we'll have presidential elections next year have you been hearing the same >> that's the goal of lawmakers. they would like this to be something that they don't have to revisit in just 12 months, however, the administration stance is they don't want a deal that would eventually result in

increases in spending outside of defense, in fact, the administration says they would like to see the sequester, dramatic cuts in spending kick in in the next fiscal year that's going to be one of the big points of contention as this comes down to the wire once we hit september 30th >> more will be revealed as we dig through the details. ylan mui, thank you for bringing those top line numbers it is a perfect time, speaking of, to get perspective from a member of president trump's cabinet. let's head to houston. brian sullivan is sitting down with energy secretary rick perry. >> thank you very much i am joined by secretary perry thank you very much. >> glad to be here. >> a lot to get to in a short time trade negotiations are under way. i know that's not necessarily your domain, but energy is a massive part of exports and imports to and from china. how does energy's role in trade effect the ultimate outcome? >> obviously that is ambassador

lighthizer's world, he does a fabulous job by the way, a very good negotiator. it is part of the mix. may not be the driver, but it's always hanging out there as part of the matrix if you will. so very important. and america now has the ability to use that in a very positive way when it comes to trade negotiations. >> is it sort of a lever that we have to pull >> sure, it is. >> whether it is technology on the renewable side or small modular reactors in the nuclear field, obviously the fossil fuels as well shs but all of it plays a role america is a leader in the energy sector, all those, not just in fossil fuels obviously that changed with the ability to deliver 34 countries, 5 continents of l and g, it matters and matters a lot.

>> you recently fast tracked some projects. there are about 20 more projects that are in some phase in the united states. is there at some point where we have to slow down? >> not in my estimation. i mean the fact is this is a fuel that will clean up the environment. as we look at india and china, these massive economies, we need probably more projects than what we got on the books today to be able to meet that demand. >> here's the thing. all those resources, many of them are in this state, we need to get them from where they're taken out of the ground to the lng or crude oil ships we need roads, trucks, pipelines. you and i talked about it. are we any closer to a real energy infrastructure deal from the federal government >> i think so. and the states matter on this as well it is one of the things i'm a

bit critical of states that try to block pipelines like new york, for instance they've got a need to be able to have the diversity of supply but won't allow pipelines across their states states like texas, states that have the resource to move it to the export facilities are going to get ahead economically because they have that mentality of we need to build the infrastructure big projects out there it will take awhile. in the appalachian region, the president is working with a group of people in those four states, pennsylvania, ohio, kentucky, west virginia, to build an infrastructure there, sitting on top of the marcellus, on top of the utica, take that natural product, crack it, be able to add value to it, and move it to ports that's happening it is in the works

the federal government and state governments need to in some cases get out of the way and let the private sector come and do these things it is one of the reasons we tried to speed up our permitting process. we need a couple of commissioners to get the permits done with wi once that's done, grab a seat. we're going to take off. >> do you believe we will get some kind of a federal spending plan specifically designed to target energy infrastructure this year? >> i think people get confused thinking it has to be a federal spending plan to make this work. frankly what the private sector would like to do is if government will speed the process up, get out of our way, get us the permits, we'll take care of the spending side of it. >> continued deregulation, continued fast tracking of permits? >> correct. >> secretary perry, real pleasure >> good to see you good place to come enjoy some barbeque while here >> secretary of energy, rick

perry. let's get to sue herera for a news update. >> hello carl. hello everyone here is what's happening at this hour the democratic party selected milwaukee to hold its 2020 national convention, choosing to nominate its challenger to president trump in the key battleground state of wisconsin. the midwest city selected over houston and miami. the gop will hold its convention in charlotte, north carolina iranian president rowhani in baghdad making his first official visit to that nation where he was welcomed by iraq's president. iran is looking for iraq's support as it faces additional pressure from the trump administration tokyo district court rejecting a request from carlos ghosn to attend a board meeting. it came days after release on bail his lawyers say he is a member of the board and wishes to participate. pumping iron may lower the risk for developing type two diabetes iowa state university researchers studied 4500 adults.

those with moderate muscle strength had 32% lower risk of developing diabetes, but higher levels of strength didn't provide any additional protection that's the news update this hour carl, back downtown to you >> sue, thank you very much. normally at this time we would bring the european close after springing forward for daylight savings time, that update will now take place at 12:30 eastern time catch that global markets report in the next hour on the half time with the judge. as we head to break, look at shares of boeing, off the lows of the morning, but still shaving triple digits off dow gains. more "squawk alley" is ahead the cnbc trend tracker live data board is brought to you by the cme group.

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shares of boeing getting crushed off early session lows, down a sixth consecutive day phil lebeau in chicago >> reporter: where expecting more details later today or tomorrow in terms of what they found with two black boxes recovered from the crash site in ethiopia ntsb and faa are assisting with the investigation, really they become the de facto lead agencies in an investigation

like this, even though ethiopia maintains official status of leading the investigation. china, indonesia, two countries said we're going to ground the 737 maxim 737 max-8 until we have more on the safety of the fleet. when you look at the lineup, 350 are in service this is the latest generation of the popular 737 line the backlog of 5100 planes is one reason you have so many people enthusiastic what's in store for boeing 70 are flying in the united states we will see more coming into service as boeing ramps up production of the 737 max lineup in fact, really that's all the company is building now out at its facility in washington 52 a month scheduled to go up to 57 if all goes as planned, a little later this year. quickly look at shares of boeing we talked about this time and again, guys. the reason that boeing has moved higher is because of the backlog, not just for all

aircraft, but the 737 line that's the cash flow generator it generates 20% of boeing sales overall, and it is key to driving better performance when it comes to cash flow we have seen in the last couple of years. >> a horrible tragedy first of all, phil, but when, if ever, have we seen questions like this before over a new plane and how well engineered it might be? >> go back to the '77 dream liner. all you have to do is look how we had battery fires shortly after those planes started flying they only had 50 or 55 that were in service, saw a couple of battery fires, immediately the faa and investigators said we need more answers here, shut it down, we're going to ground the planes until we have more answers. the different between the 787 dream liner and the 737 max-8s, far more max-8s are in service

the dream liner had more i wouldn't say cutting edge, that's the term they use, but technology put into service the first time a lot of what's in the max-8 is similar to what we have seen in the ng version of the 737 and previous versions of 737, so there are some important changes, and those are the changes that investigators are focused on >> we are all waiting for those answers, phil. thank you. and next, a live report from austin, latest innovations in tech out at south by southwest but first, rick santelli, what are you watching today? >> you know, i continue to watch how low interest rates are in the states and for that matter the entire world, and the new refrain seems to be don't worry about debt or servicing debt low interest rates are here forever. well, after the break we're going to discuss why denial isn't just a river in egypt. what do you see?

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welcome back to "squawk alley. ar, vr, and regulation, the big themes in austin as tech's latest innovations are shown off at the south by southwest festival julia boorstin has more on what she's experiencing julia? >> reporter: morgan, technology is getting very personal and very immersive at south by southwest. i am here at the demo space, wearing the tesla suit

has sensors all over my body, designed to be worn with this vr head set we'll show you what you see if you put this on. this sends pulses all over your body to make you feel like you're standing close to it will heat up to make you feel like you're getting too close to a fire. it's designed the train first responders bring you in to a very intense vr game we're also hearing a lot about augmented reality. that makes ecommerce tangible. take a look at this app enabling consumers to try on these kendra scott earrings it brings this movie poster to life this mirror created in partnership with disney reads consumers moods then plays one of five movie trailers depending on what mood they detect another big trend, drones. we took a vr flight in this one

person lift aircraft drone no connection to the lyft ride sharing service. >> this is not the future of personal aviation. it's the present ofpersonal aviation we're starting now people will be flying these aircraft this year i've flown the aircraft. we have a lot of testing to do to make sure it's bullet proof safe but there is happening now. >> reporter: we're hearing a lot about tech senator elizabeth warren doubling down on her call to break up the tech giants a push and pull here back over to you >> thank you for bringing us all of those big topics. i'm curious to see how this suit plays out in terms of vr

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this is moving day with the best in-home wifi experience and millions of wifi hotspots to help you stay connected. and this is moving day with reliable service appointments in a two-hour window so you're up and running in no time. show me decorating shows. this is staying connected with xfinity to make moving... simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. welcome back over the weekend, reading all my e-mail, looking at all articles, picking out my favorite writers like ira harris. listening to all the programs in the shows and i found two common

threads. the first one is trying to make light of some of the lighter numbers. the second issue is we're trying to put a new view, a new spin on interest rates the global slow down and considering all the issues going on around the globe, the interest rates most likely will be much lower for longer kind of reconstituting the new normal to include that the new normal is a lot like the abnormal we had after the crisis where rates are going to stay low. if you look at the chart, there's some logic to this we have embarked on the road several times. this chart starts in early 2010. if you look from 2011, '12, '13, eight years we only had it above 3%

there's year at 303 that was it. not only in inflation and in grow growth we start thinking tha ining thay what does that do. it opens the flood gates think about the monetary policy. modern monetary policy all of these things are trying to dismiss deficit, write off debt if you think that way and you're wrong, you're buried in red ink forever. this is something we need to think about not only from trading strategy but from dangling a carrot in front of our policy makers. carl, back to you. >> thank you

markets here hanging onto some gains. dow is up 95 pntois. squawk alley returns in less than three minutes so, you'll take our clubs straight to the course

for just $39.00 ? yup that's what we do. and you guarantee they'll get there? yup that's great! i have two sets. you know ship sticks only ships golf clubs? right? honey are we there yet? umph! ship sticks. that hurt. coming up tomorrow as we get more details around the white

house fiscal 2020 budget request, don't miss my exclusive interview with army skaerp maecy mark esper that's taking place right hiere. let's get to the halftime and the judge. >> carl, thanks. i'm scott wapner stocks bouncing from their worst levels in a month. did jay powell just save the rally again? it's 12:00 noon. this is the halftime report. >> the dow, s&p and nasdaq are all down five straight days. stocks may break the trend today. the man who got the fall right last year says not so fast morgan stanley mike wilson is a new note saying the evidence is building for further slowing the correction is likely not over plus, upgrades for apple and facebook the halftime report with scott wapner begin