air bnb winning round one of the fight with new york state. is this battle far from over?s the latest on what's going on? >> in a lot of ways it's a question of how free the free market is. air bnb is an online marketplace that lets traveler book a room, apartment, whole house, for a night, a week or month and the site is listed by represent theers who want to make a little extra munch the company has listings in 34,000 cities, including new york, where the state's attorney general, eric schneiderman said it's just an end run around the laws of subletting apartment, hotel regulations and this week a supreme court judge blocked schneiderman's demand for all of their posts in new york state ruling the subpoena was too broad. airbnb which is based in san francisco -- >> are a substantial number of air bnb hosts may be violating the law, kelly, since they operate across the country. regulators in every state are going to be watching this one close. >> that's for sure. scott, thank you. i want to bring in a key player, it's the editorial director of skiff, commissioned the repo

great article on foxnews.com they outline ad host of horrors people who have give then their house to bnbn subject to. them involve sex. i don't know what that says about our society. a new york comedian rend the out his modest apt and turned out to be giant orgy. next person in oakland, met addict trashed his home and stole his birth certificate. who would put your house on airbnb after you read these things. >> that's true. melissa: what do you think, jared. >> they're disrupting the industry in a good way even though they're faltering. maybe you have a security company, insurance company, provide housekeeping services or security services to the bnb customers. think if they do this right and invest a little it about money it could be interesting. i actually like the company. i agree there are some faults there. melissa: very inflated price. mark, what do you think? maybe rather than saying we'll add concierge service and that will make us seem more legit operation, as business professor would you advise to dohat is jared is saying we'll bring on security company and what would you say.

bnb foralled the air b retailers. how does that work?ork with those on the street fair to a neighborhood boutique. and we will rent that's pasted to the lead through the platform and setup the store and a matter of days. >> tell me who is using it. i know one of your customers includes kanye west. >> yes. he has worked with our store. maybe do not have the brand name. gettingre you there are a lot of space is vacant or looking to increase foot traffic. they are excited about listing the store for storefront. >> you are not canvassing the city for empty space. these people come to you? >> exactly. half have been referred through current users. thent to talk about importance of physical store space. >>, and is it really? >> how much does that drive up sales? >> is it significant. >> 94% of all commerce is still through brick-and-mortar. it is a huge channel. and we want to make it more accessible to those that are making something in the house or garage and not sure unarmed -- the next step. in can do wholesale which it did this division c

air bnb lets us share homes. uber and lift lets us share our cars. facebook allows us to share all kinds of things, so does e-mail, and it's all free! skype is free! it let's you chat with anyone anywhere in the world, hear students in a school in brazil skype with old people in america. >> we created a phone that stu people in a retirement home. >> hello, hello. john: students learn english? and the elderly are less lonely. >> i good, how are you. john: and again it's all free. these innovations happen because they happened before politicians could crush them. they're part of what adam theerer calls preventiveness innovation, create apps for apple, if we, did they probably would never have happened. if innovators could keep creating new things faster than politicians and regulators can kill them, our future will indeed be the good new days. that's our show. that's our show. see you next week. [ dave gentry ] hello, i'm dave gentry, welcome to "small stocks, and big money." [ intro music ] [ intro music ] [ intro music ] [ intro music ] [dave] for al

it ends a dispute whether air bnb has violated laws renting out their homes. >>> ebay said that hacking took place in february or early march. ebay also owns pay pal, which was not affected by this attack. >>> if the fbi hopes to keep up with cyber criminals it may need to change it's no marijuana policies. congress approved a plan for the fbi to hire 2,000 employees many of them cyber crime experts. however, fbi director said many top computer programmers like to use pot. the bureau currently has a no tolerance policy on hiring people who like to get high. >>> the 9/11 memorial museum opened to the public today. we'll look at the fanfare of the certificate yes oceremonial ope. >>> today a judge decides whether mario hernandez can stay in the country he calls home. america mobile app, available for your apple and android mobile device. download it now >> families of victims and first responders had a chance to see the museum. today the 9/11 museum opened to the public. >> i was there. i met several people who visited the museum today. i thought they did a good job paying respect to the

bnb forhe air retailers.ny helping digital sellers bring their business to brick-and-mortar stores, next. >> we turned back to our "wiring the world series." this week, how technology is changing the future of retail. ebay and etsy have allowed small sellers to gain customers. now a company is helping to make the jump to brick-and-mortar. storefront connects sellers with retail spaces for rent. they offer booths at street fairs, spaces in boutiques, open storefronts in malls. the storefront ceo joins me now. >> pleasure to be here. >> is called the air be in the of retail -- airbnb of retail. how does it work? >> we work with retailers looking for short-term he from a boutique to a vacant space on main street. in a matter of minutes, you can put in a request through our platform and set up your store in a matter of days. >> tell me who is using it. one of your customers is kanye west. >> we had a lot of great brands and designers use our platform. kanye west has been a huge fan of our platform, along with lar

france's largest bank bnb paribas has been accused of processing transactions from blacklisted countriest been any in criminal -- any terminal indictments yet. >> no individual or company nomad or how large or how profitable is above the law. >> the prevailing argument especially in the financial community is that any criminal prosecution could result in a bank losing its charter. which could set off a panic in the market and cause general financial havoc. the u.s. attorney for the southern district of new york thinks that argument is just a scare tactic. calling it a gaping liability loophole that blameworthy companies are only too willing to exploit. the question is whether it is just that or if banks are too big to jail. reading on thea u.k. manufacturing later today and pmi numbers are released. we will look ahead of that. 7:39 a.m. in london. ♪ >> the company is struggling with the euro and the drop in revenue. fell by a double-digit percentage. and the narrowing its losses. stock compensation worth $68 million. and the firm or -- former or burberry ceo [inaudible] >> it is 7:43 a.m

bnb -- he is worried that the hosts are breaking laws. best food workers in 30 countries try to hold another strike over their pay. -- fast food workers. elon musk wants a chunk of the military's satellite business. he might get help from an unlikely source. ♪ you might want to prepare for a long wait at mcdonald's. it fast food workers at 150 u.s. cities and more than 30 countries are participating in what is expected to be the largest ever strike against the industry. yang yang looking into that issue. the ceo the restaurant chain, firehouse subs. he has been local about -- vocal about imposing and increase the minimum wage. the fast food wage fight has gone global now. >> it certainly has. hope thes international reach of the strike will help convince major chains to pay their workers better. it is the u.s. industry that is the target of the strike here. a 28 states, workers hope that thousands of faces on the cause, they can win an increase in the current hourly to $15 an hour. the target will be far off. >> what is their argument bey

bnb is the one you get to stay in other people's houses and go through thomas' underwear drawer justtrust threshold. >> when you engage in a trusting behavior, you do an analysis. is the benefit going to outway the risk? and what a lot of companies are doing are lowering that risk. they're linking to a facebook account. this isn't like hitchhiking. they have a rating next to them based on their previous@on these services. it's linked to a credit card like it's paid before anybody gets in the car or goes to the house. and there's also insurance or some kind of -- if the worst should happen and your place gets trashed, there's a million dollars of insurance that they'll pay you to make up for damages. it's not just like throwing open your door to whoever comes by. there are systems in place. >> as a lawyer, thomas, though, seriously the liabilities here just making me flinch. >> the valuation that recently came out for air bnb, $10 million? there is that recourse that people can enact if they feel they've gotten a bad service. but it is really offputting to think that someone could be

the oracle of omaha is recommending that people go to air bnb.do you think this trade, whether it's uber, is this a real impact on gdp? >> its disruptive change. it will have a real impact on the economy. gdp is awfully hard to measure. bnb.e used air i've been very satisfied with it. i have used it twice. to go to florida and to go to puerto rico. >> alan krueger a fan. >> on my agenda, kentucky derby. gets right about 5:30 on saturday. candy boy is a 15-1 on favorite. let me check my notes. california chrome is the odds-on favorite. >> tom has wicked strong. that will be interesting. let's get to our good question of the week. we asked everyone, who is this week's biggest winner? obvious might be the nba. nokia with apple and samsung constantly battling in court. have not heard that one in a while. >> i forgot about nokia. >> ford. a new ceo coming on in july. >> mark fields coming up. >> finally, this one is a shameless plug. tom keene is the biggest winner of the week. he gets to hang out with adam johnson. >> present that? -- who sent that?

they get put on a separate book and when that appointment would bnb within that two-week window thenhey would enter them. that is the deception part. that's a problem with management, leadership, personnel accountability. one of the things we don't have is doctors in the mental health field. so in terms of certain parts of care we are having problems with not having enough doctors. but i think speaking specifically to the thing that is causing so many problems right now is that this is people deceiving their patients and deceiving the v.a. ost: guest: if they can't get care inside that hospital doesn't have eetsdzter capacity or the equipment, they can go outto a private care facility. the v.a. will send you out there. the problem is that those hospitals aren't using that system enough. they're not being judicious enough with their fee-based care. and what will happen in the next year is that each part of the country will have a dedicated network of care kind of like your private health care not really hmo but an out-of-service network so people can go to outside facilities easier an

yesterday they were going to turn over user data anonymously to allow people to investigate whether air bnbe room to strangers. if you look at new york code, that's treated as a hotel and regulated as such. the attorney general wanted more information. he wanted all their users information. >> it's a company that's been on the hot list of up and comers in terms of their ability to sort of make a new business thrive. >> when you talk about the regulation, this is new york state wants its piece of the pie. it's not making sure the sheets are clean. it's making sure new york state is getting tax cash. when you look over your bills and you're hit with these little fees and pings of taxes, that adds up to major coin for the state. >> the users have to pay taxes. what's bringing this about is that the hotel lobby is complaining they're stealing their customers. i think that's something we see a lot with these start-ups that are -- >> i feel so bad for the hotel lobby. why don't they stop charging us for wireless and things in the rooms that you wouldn't even -- literally are there anyway. i guess

so i think that every business has its privacy or its legal, lake air bnb type issue.lly. >> those shares up this morning. investors like what they see there, especially with an upped guidance number for the rest of the year. so they think there's a light at the end of the tunnel there. john steinberg, thanks as always for joining us. >> thanks, guys. great being here. >> up next, ford making headlines this morning after announcing ceo alan mulally will step down in july. alan mulally is here in a first on cnbc interview starting at 11:30 eastern. and check this out. john legere tweeted this foughto with the caption "i think the magenta cowboy hat is a good look for braxton carter." but look closely. could "squawk on the street" be their lucky charm? >> yes he's watching the mad dash. >> there it is. we'll talk to the ceo when we come back. come back. today, you can come to cleveland clinic for anything, everything or just to get that "thing" checked out. big, small, and yes, the best heart care in the nation. it's here everyday, for everyone. that's the power the powe