good wednesday morning welcome to "squawk" ellie. i'm carl it's been a series of good trading days in the meanwhiletime verizon's ceo hans vesper is going to join us today to talk 5g rollout. >> they're talking to roll out,

samsung in south korea verizon saying not so fast we're faster. >> they're rolling it out in the select areas of minneapolis and chicago, a week ahead of schedule they say. for the first time ever, they say, customers can access it with the first available 5g enabled smartphone we'll talk with hans vestberg. he was on a year ago he'll talk about this as a concept, lack of latency, things you can do with 5g that would really make the hard phone obsolete because there's no requirement for memory on the device. >> we talked about it at ces as well this year don't expect to see a whole lot of 5g phones any time soon a lot of people don't think apple is going to have a 5g iphone this fall it's probably a 2020 thing

much of this, they come out a little bit clunkier. the samsung's s 10 looks very nice you see my five and connectivity but it shows they're on the cutting edge electronically. they're first. they're talking industrialized and nennergy rollouts first. that's where you'll see the real 5g up front. the list keeps rolling uber and pinterest coming down the pipeline with the news that slack will opt for a direct listing later this year as well. larry poa and managing director eric poa and mike isaac. i've got to get your take on what you thought of the lyft rollout. >> i thought it was a great ipo, and despite the dip earlier this

week, the stock is trading sharply higher and it kind of reminds me of all the skepticism remember the unicorns that came out that were a million dollars or more? a lot of these companies that you mentioned, they're valued at 15, 20, $25 billion. >> why do you think it was a good idea? i'm sure there are a lot of retailers who are feeling pretty burned today. >> look. there's a tremendous appetite for growth stocks and all of the companies again that are in the pipeline have tremendous growth, and so the investors are overlooking the fact that they're currently in the money losing phase the other thing is we need more public stocks. people want to buy stocks.

>> mike isaac, what does this meanwhile for uber i know you've been digging into uber quite a bit, book coming out. they have their ipo coming they're bigger than lyft they're the category leader. on the one hand, lyft'sal indication, pretty nice. on the other hand, the ipo, not as nice. still below that $72 a share price where the ipo initially priced. >> yeah, totally if i'm uber right now inside of the company, i'm thinking when i make my road show pitch, look, lyft had said to investors, we're a focused company. we're only a transportation play for the most part and that is what they do they had a pretty rich evaluation because of that uber can go on its road show and say, we're lyft, but add to that international presence as well as a platform play as well as different modes of

transportation as well as bikes and scooters as well as their food delivery business that meanwhiles we could go as high as $100 billion in our evaluation and like eric said, they had -- they're not actually profitable. they're still losing money, but i think what they're going to do -- i have to write this piece apparently at some point they're going to position themselves and amazon of transportation, right? we might skate the line of profitability or making any money at all, but that's because we're doing a lot of time, putting our resources into growing in the future. >> eric, it's the one-year anniversary of spotify doing the direct listing here at the new york stock exchange. you've got slack moving forward with the direct listing reportedly also here, other reports that airbnb could do the same it's a different format than what we've seen with tra a diggsal ipos, not raising money, using underwriters, not using the price of who gets to buy into the stock

do you think we're going to see more and more of this listing? >> it's a software business. it's not a consumer business and spotify, obviously, was very well known, widely used by a lot of investors it will be interesting to see. if they can make it as a direct listing, that opening the floodgates for others to do the same it's very new. people are still not sure about what the rules are so we'll discover more about this. >> are you worried at all? you get into things early, so it doesn't apply to you, but markets are rewarding a lot of companies for losing a lot of money for a long time to come, it seems, and a lot of market strategists see that as a negative sign, a worrisome sign, does it not? >> it depends if they're losing money. you've got mark expenditures and gains. then i think it's justified. if you're losing money because

your overheads are super high, that's not a matter. i think most of these companies are still very much in investment modes the markets are big. they're global now as was mentioned in the case of uber, and it takes quite a bit of money to make this work. a packth to profitability is something i'll have to talk about. >> mike, we saw google with its dutch auction. what was that, certainly more than 10, 15 years ago spotify had this direct listing. for your a while ago there was a sense in silicon valley that startups should innovate around the ipo process itself my sense is it's cooled off a bit. i'm wondering what your sense is and the significance around silicon valley and this direct listing effort and where it might lead from here >> you know, it's funny. i think -- i think you're totally right. there were some alternative methods of getting liquid that have been sort of explored by a few companies. right now i have the sense that

everyone wants to get out the door as quickly as possible. lyft, i think, had the foresight to try to go first or at least before a lot of other tech companies and the bankers started realizing, you know, there's a sort of latent worry that maybe the market is going to soften, maybe ipo, sort of like a bull market for ipo is going to go away later in the year so i think you started seeing a crowd of companies trying to get out the door quickly and i think that also is set off by uber, which was, you know, i had heard for a while they were going to go in september of this year and then they sped everything up by six months at least because of those fears again that things just might start going downhill so right now i wonder if innovation takes a back seat as even wants to get out and get liquid as fast as possible. >> mike, are you getting the sense that anything about their ipo has changed because of what lyft has gone through in the past couple of days?

>> yeah. i meanwhile they are still -- i think what they're going to probably do -- you know, we saw in the last earnings, they do kind of like a weird pseudo earnings where they report their numbers to their investors and then to get ahead of it ultimately inevitably leaking they sort of tell reporters as well and so that was before they went into their quiet period. so now they're in this phase where they still have to prepare investors that they're going to be losing money for a while and as we can see with lyft, they're still burning a lot of cash to gain market shares so they're probably not going to let up any time soon so i think it's really a matter of setting expectations on, look, we may have a path to profitability, but it's definitely not going to be in 2019. >> mike, eric, thanks, guys. it's going to be an interesting few months verizon is turning on 5g in a couple of cities today

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news from verizon. the company officially rolling out its 5g network earlier than expected verizon's 5g available in two cities, minneapolis and chicago. joining me now is verizon's ceo hans vestberg. good morning. >> good morning. >> you said april 11th that's eight days from now and you're rolling out 5g early. what's happened? >> i think the team has been working relentless to give our customers this fantastic experience of 5g and our test is going so well, why wait when you have good news for your customers.

we decided to bring it out today. we'll have it in the stores. you can have a fantastic experience in two major cities right now. >> i saw headlines this morning about samsung launching in south korea that they were going to be first. i guess that takes some wind out of their sails, but i heard the bulk of the 5g push should be expected this year. is this a change to that expectation tension? how many 5g phones do you have and do you have an update on the pace of major city roll outs for verizon in 2019. >> you're going to see many more happenedsets coming out. as you know, we have announced we would have it motorola is the one we're going with right now samsung will be a little later in the quarter then we have all this coming in the second half. so we're going to see more 5g phones than we probably expected we have a good relationship with

all of those guys. when we start with the rollout, we're going to do more than 30 markets this year, and we're working in all these markets right now. so we're going to turn them up as soon as they're ready and we feel we can give the experience we want to give to our customers when it comes to 5g. at the same time handling the 4g network. we think a lot about ore customers and how we're going the treat them, but it's a great day for us to be the first in the world with the smartphones and turning on the network it tells you a lot about the team i have around me and the partners we have. >> hans, we've talked about 5g at some length here. our viewers kind of understand it, but i wonder how much of a marketing push you're going to make about what it is and what to do with it? >> we're going to do a lot of education around it. our stores have been trained we talk about the wide band here we're going to have speeds up to

1 mega bits per second compared to 50. it is 20 times faster and, of course, you can do so much with it at the same tame you'll have up to 300 megabytes per second. that's just the start of 5g. and what we saw with 4g, enormous innovation when you see this type of capabilities come out with the networks. you're going to see so much innovation i said it before, it's not the small sort of evolution from 4g. it's a quantum leap going to 5g from 4g. so you're going to see a lot of invasion, new applications coming on top of the 5g network. >> hans, morgan here 5g has been a huge undertaking not just for verizon but the sector overall in terms of spending and what it's taken to

roll out this nfrastructure. i know you mentioned chicago and minneapolis and you're in conversations with handset makers about their capabilities as well, but it's going to take some time for consumers to adopt those new phones and start plugging into these. at what point between city rollouts and who's tapping into the service would you expect to start making money on all of these investments? >> it's absolutely right new technology, new handsets take time. probably from a significant point of view, we're not going to see any impact on our revenue until 2021 i think that's how long it takes when you're the size of us but, remember, we have the most reliable 4g network that our great customers are on right now and we'll be the first with 5g being the first and having the technology that's the latest, it's changed a little bit the narrative in the market. and, of course, we're going to see more handset manufacturer

coming up here i think that's what we're working with every day here. >> hans, you said 30 u.s. cities in 2019. is that still the number >> at least i said. >> okay. so at least 30 u.s. cities covered by 5g in 2019. in terms of a percentage of the u.s. population covered by 5g signal from verizon, what's the update there in. >> basically this is all we can think about in the u.s we have named a couple of them right now. we'll name them as soon as we open them up we'll make it very clear to customers, now we have 5g and this is what you can do with it and now you can buy the phones we'll do it city by city it's going to happen across the year now that's going to be rolling for us. >> two questions, hans one is do you expect to make any updates to forward guidance on earnings as a result of any of this and, number two, why was it so key to be early, first >> number one, there's no new

updates. in march we made all the guidance we were planning. we're not doing any guidance based on this. this is part of what we're executing on i think that's where we're at on that what was the second question >> why was it so key to be first on this? >> i think, first of all, it's for our customers. we want our customers to experience 5g first. it's so important for us we have a fantastic base of customers, and, of course, they've all enjoyed a fantastic journey with us. we have a great engineering team that together with partners push the envelope to actually move the data up probably one year, maybe two years ahead of the original plan. verizon, first in the world with the 5g smartphone. i'm so proud of the team and what we can give to our

customers shoo hancustomer s. >> hans, i want to get your thoughts on this obviously you look at china. with the u and china trade talks continuing right now and tensions brewing around companies like huawei, how important is it in terms of having some of those international players involved >> we have no chinese vendor we're first in the world i think the combination of the strength of our company together with our partners, we made it happen before anybody else in the world. we would continue on that execution and we're very happy with the partners we have. we have european vendors that have supplied our equipment. we have, of course, motorola and they're being part of this it has been an important journey to work with those partners and that works fine with us. we're deploying more 5g than anywhere else in the rest of the world right now. >> hans, there are calls for

specific tests and standards around 5g ee whim and security as being the fair way to determine what sorts of equipment, whether it's huawei or from wherever should be allowed in the network what standards need to be put in place in the u.s. and nationally to a ensure that it's fair >> if you think about ourselves and talk more, we have the highest on quality and network security and we will continue to have that going into 5g when you can connect up to 1 million connected devices per square kilometers instead of 100,000, of course, we're going to have so much more interconnectivity and the skurecurity aspect is gn to be important. that's what we're building on right now. of course, this is key but that's continuing with what verizon has had all along. that just rolls into 5g. there's no difference with that.

we have more connectivity and connected devices going into 5g with higher speeds. >> a lot of shade thrown in at&t's direction over the past several weeks and months over 5g e, the little bug. it's not are 5g but faster than the 4g they had been offering. what do you think was the impact of at&t doing that and your announcement today of the public's perception of what 5g really is? >> we have been focusing on delivering 5g all the time we did it all last year which is the home phone now we do the smartphone we will continue it in the next fiviers, especially for enterprises. for us, this is sort of a transformative thing we're giving to our customers and it has to really be that transformative so that's whoo i we also have

been very prue denl when we look through and launch it. we want to have a really good experience it's a quantum leap for what you have with 4g we'll continue with that and, of course, it's a lot of marketing coming out to consumers. we will tell our customers this is really what it means to get 5g in your hand. they're going to realize today the ones that have a 5g phone in minneapolis and chicago, they're going to see a significant difference that's what we really want to give our customers. >> hans, ups has a note out today, concept cal to deliver an apple 5g phone by 2020 they specifically say we do not believe intel will be ready with a single chip compatible in time how would you characterize chip maker'sable to supply this on the phone side. >> what we're seeing so far, we know qualcomm is very advanced

so, of course, there's that. ultimately we need many shippings with manufacturers right now the early ones that have been developing has been qualcomm i know there are many ores doing it at the same time rng for us and our customers, it's important to have that with many manufacturers as well as many handset manufacturers when it comes to the smartphone work. >> perhaps a little bit of an early christmas for qualcomm too. hans vertberg, ceo of verizon. thanks for being with us with this faster than expected news 5g launched in minneapolis and chicago, ahead of that expected april 11th date. coming up, our exclusive interview with ibm ceo ginni rommety. don't go anywhere. we're back in a moment virtual w. just one way pnc is modernizing banking

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welcome back to "squawk alley. we have the story. deirdra. >> some were allowed to buy shares but at a price of $72 far above its less private round it's the drivers that are losing money. jay cradeur is one of them. >> if i had hung onto it, i would have $1,000. by buying the stock i have somewhere around $900 worth of stock. ya i, so at this point it looks like it was a bit of a mistake to buy the stock so we'll see though. the stockmarket is very fickle >> another driver who bought shares, he told us he has no

regrets and understands the up and down game of markets much was made about the opportunity for drivers to buy shares in the ipo. it was a way to share in at least a little bit of the wealth created by the platforms as independent contractors versus full employees it's still early we're seeing shares rebound a little bit today continues weakness could undo all that and it could further inflame tensions among the driving community which is so critical to the driving business uber could also let people buy shares we asked the driver jay who bought shares whether he would buy uber and despite lyft he said yes he's far more bullish on uber and he thinks it will win. back over to you. >> they're closing on that $72 mark

$71.56 a share right now let's get over to sue herera for a news update. hey, sue. >> good morning, everyone. here's what's happening. the house judiciary voting along party lines for an appeal for the full mueller report. jerry nadler said he's prepared to go to court to obtain grand jury material within that report. >> we're going to work with the attorney general for a short period of time in the hope that he will -- that he will reveal to us the entire mueller report and all the underlying materials. if that doesn't work out in very short order, we will issue a s&p. >> martin shkreli spending time behind bars in solitaire confinement, according to a report he's accused of running his business from prison by using a contraband phone they're reviewing that situation. and a new report suggests americans are not doing enough

when it comes to cancer prevention some 600,000 people are expected to die from cancer in the u.s. this year. researchers say 45% of those deaths are tied to risk factors that people can change including smoking, excess body weight, diet, and physical activity. you're up to date. that's the news update this hour guys, i'll send it back downtown to you john >> thank you, sue. and an exclusive with i ibm ceo ginni rometty. stay with us ♪ feel that? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase

the pace of tomorrow. you set it. nasdaq. rewrite tomorrow.

oi sat down for an exclusive interview. here's what she had to say about her focus on artificial intelligence. >> the original genesis is they would change 100% of jobs but if you're going to get the benefit of it, you have to change how the work is done we chose to make hr -- my hr leader chose to make hr the role

model example of that. she has done a fantastic job in fact, i make her -- she tracks just from the ai alone, my function has saved $300 million, so it isn't just about -- in part it helps the employees because it completely makes hr employee centric you don't do things to people. you do it for them because of how we apply the ai, but the other part of it is there's productivity on the other side. >> so often when we talk about artificial intelligence and working the idea comes in the robots are coming to take our jobs >> yes. >> to some extent i think that's true the robots are coming to take some jobs but how do you use it even at the individual level how do you think about the technology and the way it helps you? >> our experience has been -- we were talking about hr as an example. on one hand you're right we were able to replace a lot of routine work, and in the case of hr, our hr staffing went down by

30%. however, the people then doing the job of hr, they do far more nonroutine work. their salaries all went up or their skills went up with it and so you're going to have this trade-off. technology will drive productivity, but it will drive you and i to do our job different. it sits at that intersection everything with how we recruit today -- i was sharing with you, believe it or not, we're the number one for glass door. i don't make them go hunt for jobs the ai talks to them and they get to say we ask very nicely and get permission, share this with me, share that with me, share this linkedin review. instead of looking for jobs, i'll serve up jobs that actually match you. i should have said this. our match rate of applying is 30%. a normal -- anybody el it's about nine so it shows this effectiveness or using the ai for things like a manager who says i'm doing

salary, right? we do something to make sure salaries are share no unconscious buyers in there and as well, protective retention. that allowses us to use data we're et 5% accurate and save $300 million in replacement costs from that. these are good for the employee and it's really good for business. >> and there's an unprecedent number of companies, startups going public this year and that has got to create just an impact in the labor market, in the financiial markets. demand for technology. what's your take on the significance of this boom right now that we're seeing at this stage of the economy and how it's affected them at ibm? >> it's not just driven by that. you've got this whole new way technology is going to change everyone's job it means reskilling of your

current population. >> so you don't go to a startup. >> and so they've got the skills that apply for the future. i think this point of the world "transparency," you and i chatteding being clear with every employee, is their skill in the market hot, hot, hot or not so needed, demand, and for your strategy, is it needed or won't be needed for the future we update it every quarter, that matrix, so they know where they are. and i've got to move myself here and help them move to a new area what's happening in the market, whether or not they were ipos, this would be happening anyway so it means reskilling your current population, it means -- i've shared before on the show we've got to make this more exclusive. six years colleges and high schools together we've been working with r5 00 other companies. there's a pipeline of 500,000 kids coming through. >> 15% >> 15% are heying less than four

year college graduates because if you're going to make this era inclusive, the technology is moving so fast, you've got to make it so more people can have a job in this world. i just shared with the crhos, we always as employers overspec the jobs we hire for we write down so many credentials they should have, and it's not true. with cyber analysts. there's going to be over 2 million jobs let me tell you all the people who can fill that that don't have to have those credentials if i talk for that one moment about making this era for the country inclusive, it's that, particularly in the middle of the country where we've done hiring how do you repair leaders for that, people who feel that, not only the discomfort they're going to feel but their people are going to feel. >> we spend a lot of time about preparing people for uncertainty, uncomfortable

truths, to get comfortable with being uncomfortable. we talk about this topic an awful lot because you're asking people to take risks i guarantee you if i looked at you and said when have you learned the most, you could -- >> i'm don't even need to shut my eyes. >> it's such a natural thing you have to make it overt and talk about it and put people in those assignments, be clear that's what it's an assignment for and that to me builds in that kind of good risk taking in a culture. >> you talk about ibm being a number one target for gen z gen z, i feel like gets a bad rap and millennials too. all the young folks. they're saying all the things they used to say about gen x back when i was younger. have you noticed anything unique about gen z, that work force, that's aspiring? you say ibm. or is it pretty much the

generational stuff double matter >> i will tell you on generational issues, one misconception people have is people's ability to learn and transform is directly related to their age. that is -- we have found that to be absolutely not true the same percentage of people who can transform irrespective of age, absolutely. >> it's the older people -- >> those are stereotypes and it's absolutely not true in what we have found, and i, by the way, have found it very true on consumerism, pushing everything to be consumerism. i have found that true across the entire work force by segments so do i think many -- this idea of consumerism is especially for a consumerism? business to business can often b-complex. we've had to internalize this is why there are 20,000 design jeers i believe we may have the largest number in any corporate in one of the best programs in

how do this. and it was to bring in that idea of design thinking, sort of outside inempathy, simplity versus an engineering culture that says do everything you possibly can and, oh, at the last minute i'd better think how to show it to a user they're so differential. so that generation pushes in that direction, right, that everything should be as simple as what i touch. i think that's a really healthy thing. >> she talked about the nitty-gritty of how they're trying to sell the technology. but ibm implementing it cut the hr department by more than 30% but the salaries went up we're starting to see the ream impact. >> fascinating interview those comments about work force and 15% of hires having less than a four-year degree, that's really key that was back in february. but we talk so much about the high cost of college and if

you're seeing blue chip companies like ibm from the need to have those types of degrees, i wonder if the longer term thing is what tips the scales in terms of the value with a four-year degree. >> it's just starting. i talked with a number of companies around our at-work event, a lot of people are not ready to make that move, but they're starting to look at it because of conversations like this one. >> we say brave new world. this is it that's great jon fortt with ginni rometty. coming up, ups partnering with the medical field to deliver medical samples. gold is up half a percent. back in a minute - did you know that americans that bought gold in 2005

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as one of the largest u.s. gold coin distributors in the country, the u.s. money reserve has proudly served hundreds of thousands of clients worldwide. don't wait another minute. call now to purchase your american eagle coins at cost for the amazing price on screen now. i'm scott wapner stocks continue to march toward new highs. we'll debate what all of that means for your money. plus the call today that got jim cramer all worked up our investment committee takes on caterpillar and whether it's time to sell we'll take a look at the stocks that could chachlk it's all at noon morgan, we'll see you in just a few. about 15 away. >> sounds good. the company disrupting the

delivery of medical supplies through the skies. and tomorrow do not miss another exclusive interview with walmart ceo doug mcmillon. you can catch that thursday beginning at 2:15 eastern. dow up 75 points more "squawk alley" after this break.

welcome back to "squawk"ally the first drone program wu

approved by the faa in the u.s ups will do it across the hospital campus. joining us now is the ceo of matternet. it has been a long, slow slog in terms of commercial drone deliveries here in the u.s. going mainstream break down this program, this partnership with u.p.s. for us and why healthcare seems to be, at least at this point in time, potentially the way forward. >> it starts with a need there's a very big need to make healthcare transportation more efficient, so when you look at hospital system like stanford, for instance, where i am today, there's typically 5 to 10 facilities that need to be connect were super fast, super reliable transportation and that's what our system can do, give very predictable transportation, streamline transportation time down from 2 hours to a few minutes

this is happening under a new faa program. it started in november 2017 and we're midway through it and given this opportunity to prove our technology and figure out how it's going to scale. so we're starting at wake med with u.p.s. and we hope within the next couple of years we can take it to many, many hospitals around the country >> now, i know from a u.p.s. standpoint they see healthcare as a big area of growth. big opportunities there. how do you see it? because in addition to this partnership with u.p.s. here in the u.s., healthcare seems to be an area where you have been launching deliveries in other parts of the world as well >> yeah, that's right. so, matternet has been operating in switzerland for over a year and a half now we've conducted over 3,000 flights over densely populated areas, over the cities of zurich and bern with our partners and the opportunity in healthcare is massive. i came across a study a couple of years ago mentioning that the amount of waste in healthcare in

the u.s. every year amounts to three quarters of a billion dollars, so $750 million of waste in healthcare every year in the u.s. and waste means capacity that is underutilized in what we're doing with u.p.s., for instance, we're starting with looking at labs can we centralize lab operations to make them way more efficient and we believe that we can save an average hospital system between $2 million to $5 million per year in lab operations alone and then we expand from there in bringing medicine to -- bringing savings in how they stock medicine and how they run the pharmacies and so forth. so the implications for how hospital systems can be ran from a cost perspective are, i think, tremendous and we can have very strong positive impact there, and beyond the cost savings, i think we can use this type of system to massively improve healthcare in the country. so imagine when you have to get

that lab result back, how crucial it is to get it on time and with a system like this, we can deliver these lab results, first of all, the samples and end results much faster than we can do it with the traditional transportation methods today >> in terms of delivery locations, what is the sweet spot when is this really going to matter in terms of medicine getting to people or organizations? is it u.s. is it somewhere in the middle of nowhere? >> we believe that there's massive benefit in our urban and suburban areas so, in a place like the silicon valley or wake med where we, you know, with our first customer, wake med health, there's a lot of friction on the road. if you want to get from a to b, today, in order to transport that blood sample on demand, it takes anywhere between, you know, 2 to 4 hours depending on

location with our system, it can be 15 to 20 minutes and it's very, very predictable and if you can imagine this happening many times a day across many facilities, it amounts to a big benefit. so we believe that, you know, as we -- as urbanization is growing throughout the u.s. and much of the developed world, we need to figure out better ways to transport things on demand and drone delivery is enabling us to do that in a very, very predictable way, and it has many other benefits as well so it's lower cost eventually, it's much lower ecological footprint and again, for healthcare, it really matters that we can deliver a blood sample or a pathology specimen in a very, very predictable amount of time so you know the lab sample is going to be there in five and a half minutes and you have a few seconds, compare that to maybe between 1 to 3 hours. >> along those lines, what about air traffic when it comes to drones because amazon wants to deliver

soccer cleats and toothpaste while you're delivering blood samples. has the technology been figured out well enough to make sure that the right drones, the right items get priority when the sky starts going dark with drone traffic? >> yeah, that's an absolutely critical question. so, the whole concept of the faa program that we're part of is to figure out answers to these types of questions there is a concept that has been proposed by nasa a few years ago called traffic management and it tries to figure out how the air space is going to work that's why these types of operations are so important, so again, we started the first ongoing operation, all part of a pilot. it's not a test. it's an ongoing operation. and this type of operation gives the faa data to understand how air space is going to work so, we occupy the lower part of

the space below 400 feet there's usually helicopter feet in and out of the places that we fly on because we're flying in and out of hospitals and the reason why we've been able to operate successfully in switzerland and now bring this operation here to the u.s. is because we have figured out a way to do this safely and deconflict with other users of air space. now, how does the scale, what are going to be the technological kpaents component scale is one of the key questions the faa is trying to figure out and we're trying to figure it out with them and much of the rest of the ecosystem in a drone delivery space as well and one of the key differences when you compare our system with amazon is that we fly between fixed locations on fixed routes so the level of complexity is much lower than if one was flying to somebody's home. >> andreas, key questions indeed i think the whole world's looking to see those answered. appreciate you coming on today thanks >> thank you it was my pleasure we're getting an update on

the wynn hearing taking place in massachusetts. contessa >> carl, explosive and damning testimony inside this hearing room with the gaming license in massachusetts hanging in the balance. long-time board member pat mulroy says the board found out in 2016 about the existence of a sexual harassment settlement by steve wynn they found out in 2016 that in 2005, the settlement had been made but the general counsel, kim sinatra, presented it to the board, who said it is old and cold it's an outlier. it's a one-off and told the board there was nothing else to worry about. pat mule muroy mulroy testifieda she was asked over and over again if there were other instances of settlements and the board was never told there were multiple other harassment settlements by steve wynn. however, when pressed, the board member, pat mulroy, says this board failed in its fiduciary

responsibility to pursue more information about that settlement claims. she says it's because, and i quote here, "i cannot emphasize how bad the hostility was, the vitriol was, it was very personal to each one of these board members. she had only come on four months before but this was a board that was in the middle of a back and forth lawsuit between elaine wynn and steve wynn. they felt like they had to pick sides between mommy and daddy. they said they did not believe elaine wynn so they did not pursue their legal and fiduciary responsibility that's going to be a big sticking point for this gaming license. chairman phil satry says this business is dependent on that license. >> wow, stocks still up 40% for the year as those mcallen numbers have turned. thank you, contessa. meanwhile, verizon officially opening its 5g network today as you heard at the beginning of the show more than a week earlier than expected the company's 5g network available in minneapolis and chicago. hans did join us at the top of

the hour here he is explaining the benefit of being first to market >> first of all, it's for our customers. we want our customers to experience 5g first in the world, it's so important for us, we have a fantastic base of customers and of course they all have enjoyed a fantastic 4g journey with us and we want to give them 5g first in the world. that's important to us we have a great engineering team that has together with the partners pushed the envelope to actually moving the data probably one year, maybe two years ahead of the original plan where a 5g smartphone would be in the market and here we stand, verizon, first in the world with a 5g smartphone and i'm so proud of the team and what we can give to our customers >> we asked about chip makers as well and that leads us to amd, up 10% today, up 60% for the year so far. it's an amazing move in that stock. so many amazing tech stories lines, 5g a major one. the muster of rohan happening

here to coin an idea from the "lord of the rings," just so many -- qualcomm, apple, intel hanging in the balance as far as how this 5g rollout goes >> verizon turned high we are this news as well. it was fractionally lower earlier in the morning >> yeah. meanwhile, semis and financials continue to lead the dow, up 93. let's get to the half and the judge. carl, thanks, i'm scott wapner as stocks march toward new highs, are investors ignoring new fears about the economy and how big of a risk is that? it's 12:00 noon, this is "the halftime report. >> announcer: new highs, new fears, stocks are on a roll. the s&p touches a six-month high that index is 1.9% from an all-time high. 2.0% for the nasdaq and dow. but new data rolls in as well. the services sector and employment showing signs of concern. which side wins? fear or