they are behind waymo.aveat to these partnerships, while it is smart and the best way forward for them, this likely -- these likely are not exclusive partnerships. for these partners, it is in their best interest to be with as many different driverless car providers as possible, just because it is still so early. we don't know exactly who is going to win. but you are right. they want to have the driverless car on the road by 2018, mass production just a few years after that, so they need to do everything possible to get to those timelines, especially as their core business is struggling. so, they have a lot to prove. caroline: martin, as a vc, how are you looking at this space? are you looking to give funding? are these companies already larger than the ones that are really going to make an impact? martin: it has been i would say by far the hottest area of startups and investment in the past 12 months, 18 months. we've seen startups coming -- picking up every little part of the slack, whether it's hardware,

thesephoenix, there are 600 autonomous fans that waymo is testing.y are testing them out with volunteers. when the cars are finished or something breaks, avis will be responsible for that type of thing, making sure they are clean and stuff like that. emily: and apple? >> apple has some very highly paid engineers. the last thing they want to do is have those guys looking after mechanics. they these these cars from he rtz. how ideal are these partnerships? >> if you look at some of the really important financials in the space, the big risk for people is when you buy a car from one day to the next, it s value falls if someone else $10,000. owns the car, that depreciation is on someone else's balance sheet and not your own. that can keep your net margin high. alphabets still owns these cars, but it hints at a larger payment zipcar, the unit of avis, and that may be keeping people optimistic. emily: what do we know about exclusivity? >> google does these deals where they are not tied down like that. for avis, it's very interesting. they have cars that do

waymo has dropped three of its four patent infringement claims against uber waymo tells us this will narrow the focus of its lawsuit which after all is largely over trade secrets, not patents irish says the latest development is a sign that waymo can't make its case. included in its statement a spokesperson says, quote, faced with the hard truth, waymo has resorted to floating conspiracy theories not rooted in fact, doing everything they can to put the focus on sensation rather than substance those are fighting words, guys, and certainly not the last that you'll hear from either side to remind you that this is the case that centers on a former google engineer anthony levandowski that went over to lead uber to its driverless car company and waymo alleges he took proprietary technology with him which was later used in the autonomous car process this goes to a jury later this year waymo says we look forward to trial. >> and the jawboning has just begun here thanks very much see you later. >> 43 minutes left in the trading session. it's been a pretty good day for the bulls so far to clos

otto, which has created a scandal in his legal fight with waymo.nvesting since 2015. lyft is starting in earnest to do it itself. bill girly thinks it is decades out. what is the significance of this? david: i think it is dependent on what kind of geography you are talking about. in the urban centers where they get most of the business, it is quite possible self-driving cars could come much sooner than they would for all of us to replace our cars with the self-driving car we take wherever we go. i think it is absolutely prudent for all of these companies to take this seriously. and there may be an interesting period where we will stop something like a driver but the car will be safer because it has more software steering it. i have a little trouble understanding exactly what lyft is doing here. eric wrote an interesting piece. but there seems to be disagreement among some of the people covering it whether this is making lyft more like uber which has taken a we want to do it ourselves approach or if it is giving lyft an opportunity to work with a br

. >>> "waymo" is the self-driving car company owned by google.t's testing new technology that allows them to detect emergency vehicles. according to a report by cnet, "waymo's" minivan can now hear twice as far as they used to. the new autonomous software can determine which directions the sirens are approaching from and allows the car to decide whether to pull over or yield at an intersection. >>> soon you'll see ads on facebook messenger. they plan to roll out ads to the app's home screen by the end of the year. the company plans to gradually roll them in, not to overload users with the new content. >>> good morning, everybody. why age is just a number for venus williams. and what i can say about the all star game last night? it was picture-perfect. ha t's cool about your summer camp? email your nomination to us at coolc amps@kpix.com, and we may feature your camp on the thursday morning show. reporter ad libs ♪ strummed guitar you can't experience the canadian rockies through a screen. you have to be here, with us. ♪ strummed guitar travel thr

so now they have partnered with general motors, land rover and waymo.p spot at box office. the film is being talked about as an oscar contender for warner bros., holding more than $15 ,illion and another debutante girls trip from universal. that took $30 million. besides the movies, plenty coming up, we are covering them all on daybreak asia. the boj, after last week, they dug their heels in again and maintained the ultra-loose monetary scam. they are also pushing back on the 2% inflation target, but we will get an update on how the japanese will use that when it comes to the inflation prices. we are not expecting too much fireworks really. take a look at what we are looking at for retail sales. but here we have this chart when 7942,es to inflation, btv and we are well off the 2% inflation target when it comes to core cpi. even if you do the nationwide figure, the yellow is japan, which is the core core cpi which excludes energy or food. you are seeing a turn higher, not what we will need the 2019. so that is key data to watch out for on top of the gdp

k's couldid the waymo be solved before october.uto related technology startups. the r&dwork with division and has invested in companies that make cameras, car mapping algorithms, and a maker of robotic companions for the elderly. the president says he wants to be attacking and defending at the same time. tech andt's stick with head back to the rise 2017 conference. with ahn is standing by our guest. what is on the agenda? what are these ambitions? tata sons is a business empire in more than 100 countries. tata sons first chief technology officer joins me now at the rise of venue. thank you for joining us this morning. is anentioned, tata empire. what is the key driver of your digital push? >> it is the full scope of companies, a group of , so we have to cover all of it. digital is one aspect, but materials, energy, automation, and so many technologies to deal with. shery: given that it is such a diverse series of things you have to focus on, when you are putting your money into r&d, you spent $2.8 billion last year. this year what

. ♪ caroline: the battle between waymo and uber took an unexpected turn.lf-driving car division dropped three of four pattern infringement claims against uber. the latest move in the ongoing fight over driverless technology. off ofrg also learned larry page has been ordered to submit to questioning by over lawyers --uber lawyers. joining us is eric newcomer whose has been reporting on this story. still with us, david kirkpatrick. drop three out of four parts of the pattern infringement? >> the judge in the case had been urging off of the two pull away from the patent cases. this has really been a trade secret lawsuit from the get-go, that there have been these four patent cases. out the bet is basically walking away from three of them and only has one left -- alphabet is basically walking away from three of them and only has one left. they have switched to something else. the remaining suit is around ubers is still using and not the one they have agreed not to use. caroline: what is the rationale behind questioning larry page? >> larry had a one-on-one atv

. >> shares of the rental car company avis jumping 21% after it reached a deal with waymo, the self drivingof alphabet. it'll manage 600 cars in phoenix. avis competitors' shares like hertz are up 13%. what will the terms of this deal be? what is required of avis? >> right. a pretty small deal. some people on twitter are joking that avis is just changing the oil. they are doing just service and storage, but it does show the reason i think that hertz's stock jump is it shows that the rental car companies could play a significant role. >> earlier this hour we learned that\ apple is working with hertz, testing self-driving technology in a small fleet of lexus sport utility vehicles. >> apple is leasing some of these suv's from hertz, the traditional fleet management unit. so that came on the heels of the avis reports that we did earlier today. so we put out the apple story this afternoon, and as we noted the shares are moving quite a lot on it. >> the bank of england's governor mark carney has planned along with his financial stability team to increase capital requirements by 11.4 billion poun

call, the company told investors to expect improved bookings, and possible settlement with alphabet's waymo. the legal battle has been one of the company's biggest legal hurdles and while no formal agreement is in the works, the issue could be resolved before the scheduled october court date >>> let's get on to our top trending stories today joe scarborough making a big about announcement the msnbc host and former gop congressman saying he is leaving the republican party >> aren't you a are not? >> i am arepublican. when you but you i'm not going to be a republican anymore i'm going to become an independent. >> sort of a surprise, but not really >> exactly >> almost con firmation of what we already assumed >>> and another story trending, gangnam style no longer the most watched video on youtube wiz khalifa see you again music video took over the top spot with nearly 2.9 billion views. it was first posted on the site in april 2015. a beautiful song >> i've never watched this video. i do like the song >> it's a slow beautiful song. >> whereas gangnam was all about the video. >> because they h

they cite uber's trade dispute with waymo and in a filing yesterday uber said the letter is not rel vachand briefly mentions the lawsuit. a lot of lawyers working on a lot of things. a little more trouble for a company and a former ceo >> i wonder where they are in terms of a search for a full time ceo i kind of -- that information leaking out has died down. >> it has. all of these folks were named, nope, nope, nope so who is left i don't think we know yet. >>> facebook confirmed its working on a subscription feature to let publishers charge for stories on the site. the pay wall was first reported by the "wall street journal" last month it will be available through the instant articles starting in october. the pay wall would likely kick in after a user reads ten articles a month facebook argued story posted through instant articles led to greater engagement from reareds but some publishers are not convinced due to lack of specific data. i wonder if that cuts down on the fake news, worries if you're paying -- >> this is something across twit their needs to be sorted out it's infuriating w

until now, the company's relied on partnerships with big players such as alphabet's "waymo." well, now lyft plans to hire hundreds of engineers and open a research office in palo alto. it will focus on creating hardware and software to pilot self-driving cars, which it could then sell to automakers. >>> here's a live look at the golden gate bridge. sunday runners will run across it for the 40th annual san francisco marathon. 27,000 competitors expected to take part in the race and even more people will be watching along the route. kpix 5 reporter emily turner on the events security measures and i know you're going to be out there. there will be a lot of people in the city. >> reporter: it will be packed. 1500 more runners this year than in the years prior. >> we are in the spot we'll be sunday morning to catch the runners as they go by. for drivers it will be challenging. if your sunday plans have you crossing the golden gate that morning, you might want to think again. it's the san francisco marathon. and the bridge belongs to runners, not cars for a few hours. >> we are enc

waymo has those and they are testing them out with volunteers.n the cars are finished or something breaks, avis will be responsible for that type of thing, making sure they are clean, stuff like that. emily: and apple? >> apple has some very highly paid engineers. the last thing they want those guys doing is looking after the mechanics of those cars. they released -- least those hertz, who is responsible for that. emily: how ideal are these partnerships? >> if you look at some of the really important financials in the space, the big risk for people is when you buy a car from one day to the next, it drops $10,000 in value. if someone else owns the car, that gives the potential that that source of -- sort of depreciation is on someone else's balance sheet and not your own. that can keep your net margin high. of course alphabet owns these , cars, but it hints at a larger agreement with this car, the unit of avis and that may be keeping people optimistic from the google site. emily: what do we know about exclusivity? >> these are not exclusive google

when it comes to other baits including waymo and some of the other things they are working on, $245 million bit shy let's call it roughly in line with what we have for the straight estimate but the loss better than what others were looking for, only 772 million. kevin, what do you think >> i think it's pretty good numbers, no question about it. it doesn't change anybody's investment thesis about alphabet or google, whatever you want to call it. if you're long, you'll stay long here's the real question for investors putting new money to work s&p is up 11.7% as of a few minutes ago year to date 31% of those gains have come from the f.a.n.g. stocks of which, of course, google is a major part for the rest of the year, have you to believe such a concentrated set of horsemen are going to keep driving you forward, or is it time to start diversifying i'm going in the diversification camp i'm trimming those names into good news. i'm not divesting. i'm just pulling them back. >> google shares are down about 2% we'll actually get more from cfo route porat shortly. down 2%. michael alluded to it, but w

war in the markets but walmart forcing people going after aws and google go after google in terms of waymoause it's an extension crisis for google potentially but for google it's a matter of how does this svain growth going into the future, so these companies get bigger and bigger and bigger we're seeing lawsuits we never would have imagined around patents. 15 years ago in silicon valley, that was a taboo thing to do. >> is the frenemy dead or does it exist it is. >> i think it the frenemy exists because you always need somebody else's technology but the big companies who are loaded with cash and have great momentum and have great confidence willing to go to war with really their biggest enemies, and you're seeing new factions being built. you're seeing microsoft partner with people it never partnered with before so it's almost like global politics. you see companies that never partner, started to partner which changes the relationship between other companies, so i just think it's a big issue for qualcomm it's not that big of an issue for apple unless they are prevented from selling their

and those june lows for both avis and hertz were because of the waymo deal and apple deal so i think those -- you know, bringing back from the dead these two companies was huge for the upswing. barclays' note, though, talks about carving a binary episode for me, isn't all stock binary episode, good news, higher stock price? >> not necessarily. >> big moves i read that as big moves one way or another when you're really levered -- >> so hertz was the beta play. i was long both. i still stayed long my avis. i know karen sold hers i believe this is a bigger story, i believe they're more fundamentally or financially better capital wise than hertz i'm staying long >> i thought the debt thing was actually more interesting and that they had this plan to buy back some debt and rescinded the plan very unclear why there may be some benign interpretations. there's also the interpretation we don't want any cash out the door, the banks don't want to allow them to refinance -- that, to me, or they have bad earnings coming out. >> right. >> those second and third scenarios are more likely and i thin

ride sharing company will begin to open its own driveless car technology despite partnerships with waymoofficer is going to join us right after the break. what's going on here? um...i'm babysitting. that'll be $50 bucks. you said $30. yeah, well it was $30 before my fees, like the pizza-ordering fee and the dog-sitting fee... and the rummage through your closet fee. who is she, verizon? are those my heels? yeah! yeah, we're the same size...in shoes. with t-mobile taxes and fees are already included, so you get four lines of unlimited for just $40 bucks each. the price we say is the price you pay. your insurance on time. tap one little bumper, and up go your rates. what good is having insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $782 on home and auto insurance. call for a free quote today. liberty stands with you™ liberty mutual insurance. >>> welcome back to "squawk box. lyft finally could hit the road with self-driving technology

improved bookings, narrower losses and a possible settlement with alphabet's self-driving car unit waymois according to bloomberg. >> some stocks to watch. twitter is hiring former goldman matches managing director ned sagow as next ceo. he'll take over. twitter stocks up. apple engineers are reportedly putting in overtime to fix software bugs affecting the next generation iphone. problems include wireless charging and a 3-d sensor for facial recognition separately apple is setting up its first data center in china as part of an effort to comply with new tougher cybersecurity laws put in place by the chinese government >>> in political news this morning the kremlin says it has never been in touch with the russian lawyer who met with donald trump jr. last year and was the subject of the e-mails that were released yesterday eamon javers joins us now with more good morning >> good morning, michelle. here's the e-mail exchange with donald trump jr. that is at the sent of today's controversy. this is an e-mail that trump jr. received last year early in the summer, as the campaign was heating

, the public driving effort has focused on partnerships with general motors, jaguar land rover and waymoe north american box office. directed by christopher nolan, the film is being talked about as and auster contender for one or brothers, pulling in $50 million ahead of girls trip, which took $30 million. the imf has released its world economic out look, raising projections for emerging and developing asia and says growth countries will reach 5.1% this year. joining us is the secretary council of the eastern corridor office of thailand. thank you for joining us this morning. you are in beijing to promote the eastern economic court order , seeking chinese investors. -- economic corridor, seeking chinese investors. chineseortunities to investors show interest in right now? >> thank you. this is an exciting time for asia. corporation has been good. i am in beijing to explain investors in china about the new project of the thai government. from thect ranges airport, the highs the train, deep-sea port, and also the new liketries and technologies electronic cars. so that is raising the concer

i think about youtube, plowed, some of their other bets including what they are doing waymo and next-generationis ride sharing or self driving cars, a lot of important things they are doing. i think the core fundamentals of the business are healthy and i think this is largely a temporary pricing issue that will be addressed relatively soon. david: you mentioned youtube. how much is youtube continuing right now -- contributing to google and alphabet, and how much growth potential? scott: i think that is a question that a lot of us have been asking, and asking the company directly over the last number of years. they do not provide a lot of disclosure as it pertains to you to an my senses that will get big enough or they have to disclose some further details based on sec requirements related to materiality. nonetheless, we think that youtube has been and will continue to be a healthy growth driver. we are not so enthusiastic about the subscription aspect of the business, that does not seem to have worked for the last better part of a decade, but in terms of monetizing video content with advertisin

vehicles that we talk about and have seen on this air, when it comes to what google or thank you called waymon doing, are not more -- that gm has the same technology? >> oh, absolutely. absolutely gm has the digital maps. gm has the hardware and software they don't make it all themselves no automobile company is going to make the stuff themselves they're going to buy it from various companies that do the integration. but this is not rocket science autonomous vehicles, i hate to say this, but they're relatively easy to do and they'll get perfected over time now long-term, they are a huge danger for the automobile companies. because when we get to stage four, which are standardized, modules that can fit in to a high-speed train, on the freeway, when we get to that, and you just dial up your module, then we have a problem because nobody will give -- nobody will give a darn what brand of module shows up at the right time at your house as long as it's clean and nice and does the job and car ownership will decline to almost nothing. and at that point, the value is no longer going to be captured in

leadership, fend off competition from rivals like lyft and deal with that ongoing legal fight with waymo-driving unit of alphabet guys, back to you. >> josh, thank you very much >>> now to the housing market. which rounded out the first half of this year with weaker sales and higher prices. what can we expect in the second half dana owen joins us now from washington >> hi, mike. the tight supply of homes for sale that plagued the 2017 spring market is only getting worse and that will mean weaker sales going forward. even the realtors last week said that sales this year have already peaked existing home sales did come in higher than a year ago but sales came down more than expected in this easily busy spring market the one thing that could help slightly is just the fact that seasonal demand falls back in the second half, which could help fill the supply a little bit. but with all those side lines in spring i'm not sure that that usual shift will actually happen home prices continue to soar but if you're looking for some hope the annual gains are shrinking slightly and that's for existing