good morning welcome to "squawk alley." i am john fortt. a possible investigation into the alphabet subsidiary, guys. between the d.o.j. and other agencies possibly looking at amazon, it seems to me we might be coming to the point that government is looking at the question whether consumer hard is the main factor to consider

of anti-trust or do they move more to the european standard of somehow worrying about competition rather than consumers? >> and it could fall under the jurisdiction of how those allotments are being made and very important for investors because you're having those type of conversations take place in the two chianti trust -- anti-trust developments. >> and kara swisher joins us as we're a week away from the conference, the political and regulatory angle is going to factor in there. what are your thoughts of this possible incursion by the d.o.j. >> we've been talking about this for a long time that this is going to stop happening. it's not clear what's going to happen yet so let's just wait for a second to see what's going on google has undergone a lot of investigations, most of which in

the united states it's sailed out of just keep that in mind ten years ago in 2008 the fdc was looking at it and subsequent investigations i think i'd like to wait to see which is going to stick. right now this d.o.j. investigation will look at its power across a lot of things, probably in search and other areas and some other areas they're not as powerful. but i thisnk we'll figure out which part they're looking at again and what remedies they're thinking about >> it's unclear, isn't it, what the theory of the case might be this time around it will be different from some of these others. we know that the likes of yelp have complained about the way it is organized we've heard google's arguments about that being consumer friendly, even if it's not competition friendly has anything around the use of data changed anything?

>> i think facebook changed everything the cambridge analytical things has gotten the attention of regulators not just here but around the globe compared to other regulators, the u.s. has been very light in terms of regulatory issues and anti-trust actions not since microsoft, they haven't really questioned mergers. they let them through pretty much facebook has been able to buy instagram and what's app it's been a pretty good time to see where the newer violations might be and what they're considering. this lot of this stuff around yelp >> even if official investigations aren't open here, just the fact that there is more increased scrutiny, it seems we are talking about this on daily basis and have been for quite a while now. would you still expect to see companies like google making changes in the meantime? >> i don't know about that i'm not sure they will

necessarily. you have to also keep in mind there's other competitors that are now able to press the government on these things, like oracle and yelp or anybody else that's in competition with these companies. these should be investigations done to see what's going on in the market in the period since last time they investigated. and i think to me the robust investigations never really took place and that's why we are where we are now that this is increasing and especially with all the controversy around social media and everything else i don't know if necessarily any of them will do anything in order to stop this train, but it's a train that's moving towards them and they need to -- they need to probably do their own lobbying back to figure out what's going on. >> yeah, it bears mentioning of course, it's a monumental undertaking to the for any

enormous technology company which has incredible resources from which to mount a defense. amazon, facebook, alphabet, i'm curious which you think is most likely to face and/or should face anti-trust action from the d.o.j. >> you would think it would be facebook given all the controversy around them and all the different obvious violations every day it seems that something else goes wrong over there receipting to a lot of things but i would imagine probably google would be the one -- it's sort of been off to the side and sort of escaped the lo the of so i would think google given its enormous market powerin search and other places. amazon, i don't know they have arguments that they make that they're noting biggest retailer but they do dominate

e-commerce i think i'm not between it's amazing watching these titans trying to make themselves look small for the kicking off today in san jose. this is really my take this is really where the services san jose strategy if you're interested in services, this group of third-party developers arethe ones who are going to have to make it happen if it's going to continue to grow for apple, right? >> yes services are it for apple right now. the into this idea of services and some of the changes they're making around itunes, apparently getting rid of it and focusing on delivering these services and improving these services is

really where the future and the growth is for this company >> given the fact that there will be this focus, obviously the app store is a big part of that when you're talking about andy trut and more government scrutiny, this has obviously been a key area for apple. how would you expect them to communicate that piece of the business, if at all today. >> it could be interest so they're in legal battles, which is more interesting. i would say the they'd be way further down than amazon been. i think they'll probably continue to make their tame argument and so i think one of

the big selling points of apple is privacy, safety, it doesn't get hacked, that kind of stuff is what they'll probably be focused on >> and it's a good argument. >> i think a challenge for them, though, is growth in this area they were criticized over the difficulty in discovery in the app store, they made some changes last year trying to address that now there's some pushback from those providing subscriptions. they made suggestions to -- what can they do to tweak this massive dij call economy. >> give back more to the developers, i think that's the one way to do it i think a lot of people would stop caulking and if they got more money and maybe a little bit more transparency on how

the these. >> thanks. the president and first lady having tea with the prince of wales and duchess of cornwall. willem marx joins us this morning. >> they arrived and about an hour ago they traveled in the presidential motorcade there's a huge number of police on the streets here in central london as you'd imagine. some u.s. and british flags flying all the way down the mile of the mainstream here the president was on his way to lay a wreath at the tomb of the unknown soldier before heading

to teach with prince charms and the duchess, camilla and they will head this evening to a state banquet it's tomorrow where things really get down to business. he'll be meeting with prime minister theresa mae, in -- may. >> will yes, ma'em, thank you. we appreciate you bringing us the latest >> cypress semi agreeing to be boug bought it's up big in trade the finder of cypress, t.j. rodgers join uss on the other side of this break side of this break back in a moment direct messages have evolved.

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welcome back to "squawk valley." an update on huawei and fedex. fedex opening a probe into the matter to vinvestigate the shipping kind following incidents in which packages from huawei to china were transported to the u.s. violating laws and regulations governing the express industry in china. so fedex saying it holds itself at a very high standard of service and will fully cooperate with any regulatory investigation into house w we se our customers. fedex said there was no external pressure to divert those packages and they were not opened

you have these flairing tensions between the u.s. and china china drafting an unreliabilitiunreliabilitle entities list. we know that fedex has disclosed bidirectional u.s.-china trade is 2% of overall revenue for the company but in terms of the regional apaq business, what does that represent? if this escalates, could there be a cooling vanevent, the ideaf trustworthiness in the region? it's going to be one to watch. do you have shares of fedex down about 0.7. it the majority of other aspects of the dow are trading higher today. >> and it's down from overall concerns in terps of growth.

>> interesting to see if we ever get more answers on what happened here. >> meanwhile, shifting gears, the american society of clinical oncology's annual meeting kicking off in chicago today meg joins us with a special guest. >> john, thank you so. joining us is the ceo of astrazeneca ceo pascal soriot. tell us about the data >> there has been no improvement in what we call five-year survival rates so what is your chance of being alive after being diagnosed with pancreatic cancer? today it's 6%, 7%. it's a terrible event. we're very happy we were able to come up with a solution for some

people >> and that's that brac oa mutation >> the braca is relevant to many, many cancers >> and it's about 5% of cancers? >> it's about 7% of patients that have it, it's a small number but very relevant to those who have it. >> how big of a market -- >> it's a small segment but it is a great opportunity for patients with this type of cancer to benefit from a new treatment.

>> you said that astrazeneca might be number six or seven in terms of sales but you're number three in the science how do you catch up the sales? >> we are in the process of launching in the early phase for us it's very important to be a leader in science before anything else and we pride ourselves in shaping the future of cancer care this study with pancreatic cancer is very relevant to that. it shows braca is applied to many cancers >> are enough paushs getting tested for brca? >> i don't think so. i think it is something that

should become rue to and if you have a family member that has this mutation, not only women but also men should be tested for it. >> where do you think astrazeneca needs to grow in terms of your cancer business or more broadly and how do you look at the prices of potential biotech projects >> it's a great question in we want to be a leader in many of the and we have our -- we just developed a cooperation to develop a new drug that is a toxin to the cancer sells. and the clinical results are amazing. we would be able to help so we want to grow in many of those

price. price is of course the issue but we try to develop targeted medicines that really generate a clinical benefit that can justify the cost >> thank you so much for being here >> it's a pleasuring to here with you today >> a lot more coming up. shares of cypress surging, up 24.5% joining us now, the founder of cypress semi, t.j. rodgers great to speak with you today. you founded this company, used to run this company, you're still a shareholder. how do you react to the news what do you think? >> $10 billion is a lot of money. i think there are a.

given what we've seen about and other economy condition dubtors, would you expect this deal to move through regulators in other countries smoothly? what are you anticipating? >> that's a very cypress makes some fair ly that could give sifious problems and so they could not pass -- approve it and then have to approve it separately or a lengthy bureaucratic coming up >> from as this trade war

stretches out. do you think the trump is pitch well, first of all, the word war is reasonable. it's a form of cold war. the chinese that played that game unfarley almost forever, companies like huawei and others make a practice of stealing or manipulating to get western i.p. and then using it. for example, there's one case of a battery company where china just declared that they're going to subsidize the battery industry i think forcing the

chinese to deal with us whatily while we still matter a lot to them is a reasonable thing to do and they're tough. and and i hope the chinese figure that out and weep get back to free trade, which is the most prosperous solution for both sides >> so to dig into that ail little bit more, the semiconductor is the crown jewel, if you will, it terms does that maintain that edge the ledger has two sides to it we make exotic, that's the crude

oil that floats to china for their m snshl and on the other hand, it will force them to be even more resolute in developing their own semiconductor industry, which will compete against us in the future >> t.j., if i could come back to the deal today, do you think infi infineon is the right business they're talking about enhancing and celebrating their product and getting into m. >> actually, if you'd name intel, you'd name infinand i

think except for the distance, which is a problem, the match is good >> you like the match. and for you, sort of the company you founded well, i have missed feelings of on the other hand, they just sold my baby for a high number of dollars purr pound, so that's not that cool for me either. >> t.j., thanks for joining us today. it's always great to get your thoughts >> and nowets in the flad. the collection includes the declaration of independence that comes out of the britt esh,this

was a press conference >> china wants to be the economic power of the world. we talked today about these shared concerns and as well as the concerns about technology. >> actor kevin spacey appearing in a nantucket courthouse in a case that accusing him of groping a bus boy. let's go back over to identify squawk alley." court any reagan, thank you it after reports that google is

sharing a the price we've got a live report from san jose coming up stay with us

let's have a look at shares of both amazon and google parent alphabet they're under pressure this morning. this as u.s. anti-trust regulators reportedly have taken steps towards greater scrutiny for both tech giants the d.o.j. reportedly taking a closer look at google and the ftc at amazon. joining us former ftc head of anti-trust enforcement, that's one guy, now a partner at the law firm arnold & porter >> good morning. >> good morning. i hope i didn't overdress. >> you're fine no tie, it looks great

i wonder on your take of this report and the possibility of another fresh anti-trust run at one of both of these huge tech giants it s this hinging on the possibility of moving toward as opposed to simply paying attention to consumer harm >> it's it's way to early that the ftc is cleared to look at am zwlon behavior and d.o.j. is cleared to look at google. but what they're going to look at, how long it's going to take to look at it, what they might find and every they would go to court and while everybody wants to know today wash. >> are there any new facts that you see, new issues loof being on the horizon because we've had

complaints about the market power of these names for a decade now i don't know. obviously there's been a lot of public talk about these dom nat and whether they're problematic or not it that either or both agencies would want to teak a look at it. one of the things that i've found with be a the anti-trust agencies are pretty serious and sober about their work >> how did those jurisdictions play out in terms of which or potentially investigates which

company? >> that's a request can because under the law in civil matters, d.o.j. and ft.c. share jurisdiction when there's an interesting on the part of one or who is going to look at what? that makes sure that the public doesn't bear the cost and the companies don't labt if the reports are true, the agencies met and decided we both have an interested snrp and p and d.o.j. will have the clearance to look at conduct by koogle and amazon will be looked at by the in fact, it would be quite view.

>> give us a sen sfrrng how long typically is is an investigation that and what's the likelihood th that. >> well, the timeline is dependent on the facts and how much they need to look at. here and also on the law, you know, there's question about if a firm is successful in its market, anti-trust law says you can't penalize success you can penalize bad behavior. for example, you know, you're free to climb to the top of the ladder, but if there are credible allegations you've criesed the it will mostly go on

out of the econ mists will be involved it will take quite a while, i assume, for this to get to a decision point and there's no guarantee that there will be. >> who makes that final decision you've held both of these offices both at the d.o.j. and at the ftc in terms of anti-trust and at the ftc, they'll have an opportunity to decide whether or not to go to court the important thing the two

agencies are law enforcement agencies sprn. >> bill, you were head of the justice department's anti-trust division six years ago when apple was found to have cod you'd you'dedsppt or just the same level of off fist case when. >> well, i think any fwrirpg -- i have no insight into the lawyers who these two firms might employ in these matters, but they will have competent representation, which they should third parties, who are potentially concerned about behavior by a successful platform will also have lawyers

who will help them develop a presentation for the agencies about what those concerns are and how factually rich, how factually supported they can be. >> all right, bill, great to have you with us >> thank you >> what to expect out of apple's worldwide developer conference that's next. but first, rick i'm watching these massive moves in straits over the last several of togss what does it mean? after the break.

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welcome back the dow is up 33 points right now. let's go over to the cme and rick santelli. hey, rick. >> good morning and thank you. boy, we've had a wild ride over the last several sessions in treasuries, and it's a unique ride because much of what's been occurring in treasuries is in response to other countries' sovereigns, like europe, like japan and their central bank policies that continue to push rates down through stimulative policies let's look at some charts. there is a three-day of two-year note yields. what i want you to notice on thursday the high intra day 213

on friday, the high was 203 and on today's social the low is 183 been that's 30 basis points from 2013 on thursday it was 228, friday 219, today the low 207 21 basis points. inth obviously closers are the only thing that and i talked with bob hormat against bob mueller and the question of the respondents was basically about all the global trade issues. these respondents filled out that survey before the surprise mexico trade tariffs the fascinating was how they

continued to come up with an alternative to china what happens when there's no it will tern i? nobody in always seems to be i widen active gunshot, moving that and reflecting that with a big chart narrowingand also, we also talk about the vix, the ten-year, and it's hovering near 5 1/2. that's a level we haven't seen since february of 2018 if you open that chart up to 2008, the right side disapefs a arebut in the context of chapters, this one isn't huge

but it certainly merits paying very close attention to. jon fortt, back to you >> rick santelli, back to you. stay with us a visual snapshot of your investments. key portfolio events. all in one place. because when it's decision time... you need decision tech. only from fidelity.

you need decision tech. you guys be good i'llshe's gone.ter. it's a dangerous world. ah! [ grunt ] whoo-hoo! pops are your friends going to die? pickles don't be so dramatic. but yes probably. there they are. aww! whaa , whaa, ahh! i'm scott wapner stocks are shaky as we enter june what will the month hold for

your money our investment committee making moves today you'll want to know about. and our investment strategist has a new target for stocks. and our call of the day zeros in on a popular cloud play. we're trading that group it's all coming up on the half at noon. david, we're about ten away. we'll see you then >> thanks, scott china announcing today it is considering the rollout of commercial licenses for 5g one company set to capitalize on that technical transform iations boingo joining us is chuck findley, boingo's new ceo how does it help in terms of your connectivity? >> you mentioned we're in airports, stadiums, we're in military bases now

so wee do wifi, but we also do cellular one of the largest data providers of cellular networks and any one of those locations, we'll be able to bring 5 g, when you're in hubs like new york airports and world trade center, 5g will add quite a bit of capability. >> what's the transformation going to be for people in a terminal in terms of their connectivity >> oorkts you know, significantly faster so five to ten times, at least the other advantage is wifi 6 is coming as well so both the wifi side and the cellular side that are both enhancing speeds we're a total connectivity company at boingo and everything we do is help people want to use it with 4g regularing, 5g coming in, i think it's going to be a great period of time >> as a veteran of qualcomm, you

have some sight lines, i would tong 5g and how long it's going to be until it evolves how many years until what you're talking about is a reality >> that's always a great question and if you go back to 4g where i think you'd say it was four or five years, you know, 5g, i think, will be much more expedited. qualcomm and infrastructure, device guys are well ahead of the pace of 4g in two to three years with all of the u.s. operators engaging, chairman powell and the fcc. i think you'll see it expedite much faster. you'll see 5g really start to take over. >> how does the huawei ban affect that and affect supply chains in terms of the rollout of 5g? >> for boingo, it doesn't impact us at all. and if you look at what's happening with infrastructure, what's happening in the u.s. with qualcomm and the devices all coming, there was just a laptop announced with 5g with

qualcomm and lenovo. they're starting to get rolled out. i think you'll see that get greatly enhanced as you roll into 2020. >> ifeel like we never got to the point of simplicity with public wifi we were promised maybe security played into that. i don't know all kinds of names offering it and reselling it is 5g going to change that equation at all? >> yes, and no one of the benefits of boingo is we've made that more simple. as wifi 6 comes in and there's greater security and it's more readily available and you can hand off a little better, that's going to be great. one of the things boingo does is whether it's cellular or wifi, we do all of that. and it really ends up peek what's in the best interest of the end user wifi does become simpler the connective ith with 5g and all that get aligned is going to enhance the use spernr experiene

>> what is the business add you're bringing to these places? >> you have all the wifi as it continues to get enhanced we bring all that. we've been doing it for 20 years. we're well ahead of the game there. bringing cellular into that as well so we represent all of the operators. regardless of you know, whether you're with verizon or sprint or t-mobile or at&t, we can set up the network, align it with the wifi so you have a great experience regard thefless of t operator you're with and we work with all the operators. >> do you expect the t-mobile/sprint deal to move forward as has been proposed thus far and if so, i guess more broadly, what do you expect wireless and the networks here in the u.s. to look like in the coming years? >> it's hard to predict what will happen with that. john and marcello have made a compelling case. and, you know, there's so much competition already. the operators, the cable guys. as wifi and cellular get more

combined and companies like boingo are making that happen, you'll see speeds and capabilities only increase >> spacex issued an update on their first 60 star link satellites saying so far operations are going well. obviously, they plan to launch up to tens of thousands of satellites, and they're not the only one looking to do that in terms of offering prodband friend or foe in these potential services in the future >> anything that enhances connectivity will be good for boingo that would just be another capability that we could combine with our wifi and cellular we already have in place. >> mike, thank you for joining us >> mike finley is the ceo of boingo we have a live report from wwdcft t bak aerhere we're back in less than three. (henry) i thought it was unfair. when-- when you hear those words that you get diagnosed with cancer.

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apple's highly anticipated developer conference set to kick off in just over an hour josh lipton is in san jose with more on what to expect josh >> so, jon, we're here at apple's big annual software show where the iphonemaker is expected to make a lot of news today. front and center, jon, is going to be a new mobile operating

system likely to be called ios 13 now that's going to allow iphones and ipads to run faster and more smoothly and updates to message and apps we could see the app store added directly to the watch. that would make it a much more independent device apple could make it easier and simpler for developers to move their ios apps to laptops and desktops and that could mean more apps ghog the mac platform. a lot of hope on the higher growing services business. the success on that will depend on the developers behind me. it's those men and women helping to create new dynamic, compelling experiences for the app store which, remember, represents an estimated 35% of that services division though we also know the app store does face some challenges. in march, spotify filed suit against apple with the european commission saying cook's company

limits choice and stifles innovation in may, you saw the u.s. supreme court dealing apple a legal setback allowing antitrust suits against the app store to proceed. plaintiffs arguing apple monopolizes the market apple rejecting both those criticisms but the bottom line for developers here today is this. where can they make money? and notwithstanding those issues they know consumers spend a ton of money on the app store year in and year out. $47 billion last year alone, according to sensor tower. that was nearly double what was spent from rival service google play guys, back to you. >> josh lipton, i know you'll be all over that news for us on cnbc all day thank you. and word that apple could be breaking up itunes like destiny's child and various little pieces going solo that would be in a way sort of sad. it's the app that started it all. it was getting kind of bloated

as well. >> it goes back to destiny's child's heyday so i appreciate the metaphor there so certainly services expected to be front and center today one to watch especially when other names in the big tech universe are trading so much lower. >> and music is beyonce if that happens. let's get it to the judge for the half >> jon, thanks i'm scott wapner with the dow on a six-week losing streak should investors prepare for a major june swoon it's 12 noon this is "the halftime report." six straight down weeks for the dow. four for the nasdaq, s&p and russell. today, what the bulls are really up against plus, picking through the carnage. apple is 25% off its high. alphabet down 20%. amazon 16% at what point is it time to put some money into these great american success stories the investment committee is ready to weigh in.

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