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tv   Squawk Alley  CNBC  June 19, 2017 11:00am-12:01pm EDT

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performing sector of the year, rising 18% since january watch that tech sector etf trading about 60% more than its average daily volume over the last ten days. we'll watch that for sure. now let's send it back downtown for "squawk in the alley". >> it is 11:00 a.m. on the white house. 11:00 a.m. on wall street and "squawk alley" is live ♪ ♪ i don't want to know your nam because you don't look the same the way did you before ♪ good monday morning. welcome to "squawk alley." we're at the stock exchange.
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joining us this morning, the executive editor kara swisher. we can't wait to check in with kara in a moment on a big day for tech apple's ceo, tim cook, bezos, cats among the nearly one dozen tech ceos travel together white house today for the first meeting of president trump's american technology council. we're at the white house watching all that good morning. >> good morning, carl. that group has convened conference calls in the past but it is first meeting of the tech ceos here at the white house it is the high list the white house's public schedule. but as we've been seeing taenldes come in, we notice there is another meeting at the white house today on tochl ax r. so we're, of course, going stay tuned into what exactly comes out of that meeting which is going to be very important for our viewers as well. but the meeting with the tech executives is very narrowly focussed today the office of american innovation wants to talk about how to modernize government services and this is what they have on the agenda so far. they want to talk about
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modernizing government contracts and partnerships a senior administration official tells me don't expect any new deals to be inked with the companies. with these contractors this week they're going to discuss how to bring them into the 21st century. they're going to talk about how to harvest big data for the government platforms to make them more infective. they're going to try to make the platforms more user frenltly and also as potentially an olive branch to the tech ceos, they're going to discuss immigration reform as well i just flernd a source familiar with apple that its ceo will be participating in those latter two breakout groups. the one on making government services user friendly and also the breakout group on immigration reform this is an issue that apple and its tech brethren are really focused on they employ so much on the vees yaz. and it is a share of the tech sector compared to other industries rely on the h 1 b visas. finally, other issues for apple. veterans affairs, incription and
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human rights seen we'll see exactly whether they can get any of those extraneous topics on the table chris ladell says despite this industry having been at odds with much of the administration's other policies, 90% of those invited attended to day or will attend today carl >> all right thank you very much for that speaking of ladell, we did talk to him this morning about the ajenlda today and what the white house hopes to accomplish in the long term. >> this is not just about modernizing government there is about opening up a data and opening up apis to help build a government technology sector and we think we don't need that many more social networking firms out. there but we sure as hell need a lot more better governments. so if we can encourage the proliferation of startups and big companies with gov-tick, we think that can be a positive develop ment for the next few years. >> so given all that, kara, we've seen a number of these meetings is there something about today
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though that is more than theater? >> no. and to quote lloyd blankenfein, i think it's the most painful corporate retreat that these people have been on. they have to get together and do these lings. chris la zeldell is a fantastic. he is very earnest and trying to figure out how to fix government fwh but there is nothing new the obama administration tried to do it going as far back as, you know, the george washington administration they've been trying to deal with how to make government more efficient. so i mean we'll talk about that issue and try to figure out how to bring government into the modern age obviously, immigration is important for the tech ceos. all of them, not just tim cook and there will be a lot of talking and breakout sessions. but there is nothing like real is going to come out of it they have to go there they have a troop there.
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they have to say their piece and then it will be great if chris could get something done he's got a very small group of people working with him. obviously the trump administration is preoccupied with other issues. tooz bad they can't focus on this >> kara, we know that president trump is fond of this particular photo-op he is sitting in the middle of the table with the powerful people around him. since we started seeing these before he took office, his popularity has not budged much how has the calculus changed for the ceos as far as the reputational risk? is there less because perhaps they're seen as being less under his sway because he's not that popular? or is there more because he's not that popular >> i'll be honest, i don't think they care. stle to do this no matter what the administration is. you know, they like chris ladell he has a lot of great relationships. he worked for microsoft and a bunch of other companies he's a great guy he has a really nice group of people working with him on this. i think it's just they have to
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kind of troop there and do this and take their pictures. i think it's less prot straighting themselves the first times and this time we have to fix immigration. we may as well get our unpinputn there we have to deal with government efficiency. maybe they can offer products to and so they have to -- it's a have to go to thing essentially. and they'll go and they'll do it i don't see a lot of things happening from this and that's really the point but it's nice for the president to be able to sit in front of 10, 12 tech ceos and say how fantastic everything is going to be fixed and then nothing is going to probably happen probably >> they don't have to go elan musk pulled out after paris. i mean different councils and different roles. i do think there is still a question about what message it sends to their employees, to their customers. whether it comes to the more controversial issues >> yeah. i think they just have to be
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there to talk about it and like tim cook is not on any of those councils, the regular councils the next one will be a lot of senior vice presidents and then vice presidents that go to these things and try to work out anything they have to be aware of what the administration is doing. as much as they like to tout the infrastructure week, this is not -- they have to pass legislation or do real reform of government and that's been a goal not just of this administration but every other administration barack obama made a huge push in this area. and made some strides. but at the same time, it's a really, you know, fixing government efficiency is not the easiest job in the world but i think immigration is it's getting the right immigration things in place. they've got to communicate that again and again. i don't think they're in the pr prostrate role. >> we talked to walter isaacson in the last hour f you go back decades how the pend lum has swung from innovation coming out
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of dod of course, the birth of the internet swung to the private sector. and whether or not there could be some movement back to the middle here, kara. what do you think? >> yeah. i don't know you can't solve government problems by an app one speech obama made torld the end of his thing is that government doesn't lend itself to disruption and easy tech solutions. and so i think the question is to me the real topic should be where are jobs going in the future it's obviously one of my obsessions right now what happens under ai, automation, training, education? those are the top thaics that t ceos should be talking about tech sfloelg important and could probably save some money but to me, the question for a lot of the tech ceos and the government should be how do we get ready for what's coming next and the stuff that these ceos are working on like self driving cars that to me would be a real topic. and it's a serious topic but
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nobody wants to touch that one that easily. they just want to talk about how jobs are coming back and not what happens when -- i think it's -- there's some very serious topics that they're going to happen around technology in the next ten years. and that to me is where the focus should be. >> i have a feeling we'll have that conversation whether we all like it or not. >> yeah. >> let's get your take on amazon still a lot of buzz surrounding friday's deal to buy whole foods. the journal on the front page, "for amazon now come the hard part, citing specific challenges in the grocery space including delivering food to people over the last mile and look to cut prices and reduce head count." we have the price above $42 today. we're speculating about rival bids where does it go next? >> i think this is a great deal for amazon if they manage to get it but i think like we had scott galloway on oddly enough on monday, a professor at nyu we talked about this possibility. one of his points i think which is well made is they could just
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shut down the stores and use them as distribution centers in urban areas. that makes a lot of sense for amazon >> you can't get your $4 tomato, i'm sorry. >> right i mean few issues in society today are more hot button when it comes to things like red lining and neighborhood blight and inequality than who has a grocery store. if they were to shut these down, not would only they tick off the high falootin' 1%ers, they dash the dreams of all the other enabled that's hope to get this food in a way that they can actually enjoy it. because as we know, people who live in apartments, that's a lot harder to take delivery of anything valuable without it disappearing this is going to be incredibly difficult for amazon to live up to all these hopes that are being written in the analysis. there's a lot gf they can do here something tells me it's going to be a lot slower and steadier than at least the writing would suggest.
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>> i don't know if whole foods is a place most low income people shop. most people can barely afford that store it's a very expensive way to shop but i think the question is where does retail go in the future and how is amazon going to change this? obviously, it's moving in a very interesting and possibly big way into a sector that is a daily use case or a grocery store is something you spend more time in and how can grocery stores be changed and reformed again, if i was a retailer, one thang is fascinating is we focus on coal miners where there is 75,000 jobs. this is millions of jobs millions and millions of jobs. so if retail changes and stores shut down if they become automated again back to the jobs thing, that's going to be a really interesting issue that our country has to face. amazon moving into this sector, i think, is a bellwether for where retail is going which is troubling for a lot of retailers. >> and it may also, kara, increase the political scrutiny around some of these technology
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companies. jeff bezos is part of the group. he also owns "the washington post." and donald trump on the campaign trail said he had a huge anti-trust problem do you think that president trump will still target political regulatory risks around amazon, around this deal whether it deserves it or not? >> i don't know if they'll cherry pick amazon it will look like political retribution. that's a very dicey thing. again, donald trump has a lot on his plate. i don't know if attacking a service that most customers slik probably the best idea but on a bigger scale, yes i think we have to start thinking about the impact. it is amazon's role to do this should they just move through and innovate is it their fault that retail has gotten so backwards in technology that is not really amazon's fault. that is the fault of the retailers. it's a really interesting time since retail rements, as you said, so much about the vie brancy of cities and how you keep cities vie branlt but look at yourself
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how much do you buy online now compared to when you used to go to stores? i know i do. you can't deny the change that is happening in that area. people like it so we'll see where that goes >> yep that's really all that matters in the end, whether people will choose to consume that way, care yachlt really good stuff today we'll see you soon >> thank you >> kara swisher joining us when we come back, the f.a.n.g. rally resumes today. dow up is 101. anti-trust concerns over amazon's bid for whole foods we'll hear what one congressman has to say about the deal. and then we'll go to the paris air show our phil lebeau with a special guest and big orders being made in the business. [vo] when it comes to investing, looking from a fresh perspective can make all the difference. it can provide what we call an unlock: a realization that often reveals a better path forward. at wells fargo, it's our expertise in finding this
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i need one number... not two. i'm always moving forward... because i can't afford to get stuck in the past. comcast business. built for business. the dow hitting another intraday high this morning thanks in part to tech, apple and microsoft among those leading the blue chips higher. for more, we're joined now by senior portfolio manager dan morgan and brian white brian, start with you. good morning to both of you, first off. >> good morning. >> hi, john. >> what is your take on this market in technology, brian? we got a summer ahead and then the fall where we've got apple's iphone coming out and a bunch after announcements. what is driving tech right now >> i think tech is where the earnings growth is i think it's where the future is there's a lot of disrupting going on in traditional
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industries and a lot of the companies we cover are benefiting from this we put out a note today to focus on the second half of the year which is the strongest part of the year for the tech sector >> and, dan, a lot of interesting m & a happening. we were talking amazon-whole foods. we can't think about qualcomm and xp and others, seem to be a lot of other tech companies trying to move into adjacent areas, blending the real world with digital how much do you expect that to have an influence over stocks over the next few months >> you're right, john. we're getting now extra catalyst on top of very strong earnings growth in terms of these deals that are going off that is obviously creating m & a activity and interest in the sector as a whole. obviously i would expect it to continue i thought the amazon whole foods deal was interesting question talk about that later but i expect to see other deals like that coming down the road
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in technology which will create more interest in more of a catalyst in the view on top of the strong earnings growth >> what do you mean more deals like that? you mean more tech players buying brick & mortar retailers? >> we could see more of that i just expect down the road as we like for example in the cloud sector, you think of who are the major players in that group? well, not every player has a full portfolio of offerings. you expect continued acquisitions to occur in that -- within that sector and i still think you may see other deals down the road like you were mention brg where you see technology crossing over into groceries or other things and kind of consolidating, you know, industries together that we don't necessarily think of being, you know, tech. >> i mean we talked a lot about brian how this has changed the outlook right now for some of the retail stocks, especially the grossers what does it do for the rest of the tech stocks? >> well, i think it shows you
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that the major tech companies, number one, are looking for new growth engines and they're also wanting to participate in the digital transformation that is occurring across a lot of the traditional industries and so, you know, you look at the auto market. what's going to happen look at what apple is doing. is there a play there? look at what is apg in ar and vr i think there is a lot of opportunity for these big companies to go after. especially with repatriation if we get repatriation the next 12 to 24 months, apple has 93% of the $257 billion overseas that will open a whole pipeline of new acquisition. >> dan, brian is eluding to something that mark said at code a few weeks ago. that is economy is sort of split in half between sectors that have truly been revolutionized by tech, media, real estate and so forth and areas that hasn't really touched yet. food is arguably one of them but education and others where
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software hasn't started eating the world. dan? >> oh, i'm sorry yeah no doubt about it. i mean you've got other sectors that haven't been touched. you expect this continued consolidation down the road. you hit on some of the sectors there's a lot of areas that tech can continue to incorporate that haven't yet. so that's a very exciting sector it is expected to do very well they can project profit this is year in the tech sector about 24% on a consolidated basis. it's one of the better growth areas. i expect it to continue going forward. >> all right we'll keep track of it thank you dan and brian. >> thank you, john >> straight ahead, speaking of this deal. strong words from one silicon valley congressman over amazon's
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floon b plan to buy whole foods. why he is asking for a review of the deal plus, we'll go live to the paris air show they are the natural borns enemy of the way things are. yes, ideas are scary, and messy and fragile. but under the proper care,
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elizabeth war sen asking yell ton remove 12 directors from the board >> it is a response. the federal reserve saying we received a letter and plan to respond. now we went a little bit further and tried to read the banking law. it's a very long and complicated law. let me show you one section we found which basically says the federal reserve can fire members of the board as bank of directors or the appropriate federal banking agency may serve a written notice of the intention to remove such party from office. and that depends on their breaking of a variety of laws in there including dealing with the safety and soundness as
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elizabeth warren does mention in her letter you can imagine she's a lawyer that she read the statute. whether or not it rises to that level is unclear whether or not they have repeatedly violated safety and soundness in the past this has been used, we understand, to remove, for example, ceos who sit on the board now we also have a statement thattian that janet yellen made we initiated a broad base review for all the organizations of the compliance regimes and governance this is in n. response to a question on wells fargo. we understand that review, talk about nine months ago, carl, is still underway >> wow what a story look forward to following that, steve. thank you very much. i'm sure it's been elizabeth warren and wells fargo news. >> amazon's wanting to purchase whole foods is on the radar.
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congressman, good to have you with us. >> great to be with you. >> you're a member of congress you went to yale law school. you specialized in interlekt you'll property, does this deal have a sflob. >> it z the main problem is it's going to hurt local grocery stores it's going to put pressure on them because the companies can engage in below cost pricing and it is going to put pressure on wages >> congressman, i just don't see how there's an anti-trust argument here at all amazon isn't the biggest retailer whole foods is not the biggest grocery store. if you're that concerned about those effects, why aren't you pushing to break up walmart? >> well, as the supreme court tells in cases in 1966, the sherman act is designed to deal with economic consecration and we've seen walmart already has had a negative impact on
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wages and negative impact on issues of local grocery stores en that and this is just going to aggravate the situation the sherman act was designed to deal with economic consecration and not have large conglomerates. the other thing is that you're right that amazon right now would only have 3% of the grocery store chains but -- and the markets reacted everyone knows this is a huge deal it is entering the retail space. and there's been a history of having lower prices in the past and then of emphasizing growth and driving people out of business so i think this is going to hurt wages. it's going to hurt local grocery stores and it's going to lead to consecration >> it might hurt grocery stores, congressman. ultimately, wouldn't it lead to lower prices for the consumer for food and not just lower
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prices but expanded access to healthier organic food in the form of lower prices and generally that would work against an anti-trust case, wouldn't it? >> well, there are two schools of thought on anti-trust there is the original sherman act and the view of others that anti-trust is supposed to deal with economic concentration. that you're supposed to look at the consequences on wages, whole foods was paying the workers very well. walmart and others have not. and this is going to create a downward pressure on wages for supply chains to create a downward pressure on wages for employees. it's going to drive small businesses out and so those are all considerations under the sherman act. now robert bork, a very conservative justice has revolution the chicago school of antitrust where he says the only thing we ought to look at is prices i disagree with that i think antitrust needs to look
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at the consequences of concentration to jobs, wages, small businesses but even with prices, what you have seen is when you have large concentrations, companies will come in. they will value growth they will be selling things below cost they'll do that and then eventually they will develop large market share and the ability to set prices and discriminate and if amazon uses amazon to start price discriminating, you can have consumers impacted. the mainish sue wages, impact on local small businesses and invest ment for innovation >> interesting approach and framework given the thafact tha industry is so fragmented. congressman, we hope you'll come back. >> i appreciate it and i definitely think there are two different schools of anti-trust thoughts. the robert bork thought which is all about prices and i think the
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school about harms of economic concentration. >> congressman ro khanna, thank you very much. >> thank you. >> let's get to the european close. >> help loeshgs carl european stocks on the rise today on track for their best one day performance in two months one of the big winners is a french stock market jumping in reaction to the president's winning a commanding parliamentary majority in sunday's election. investors are hoping that he will succeed in pushing pro growth reforms you can see the french equity index up more than 1%. the new french president celebrated by kicking off the paris air show today next up, the shuffling of his cabinet and naming a new government on to brussels, negotiations are under way nearly one year after the uk referendum on departing the european union he seeks a special partnership
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while both sides must first tackle uncertainties caused by the brexit take a look at the uk pound. still down about 13% since that brexit vote took place on june 23rd of last year. slightly lower against the green back in today's trade. we fin wish a twist on the whole amazon-whole feeds deal. an on line grosser up sharply on speculation it may become a takeover target, extending the gains from friday up another 11% here on monday sarah? >> it is amazing to see how the deal ripple infeeffect has gone global let's send it to hq for a news update and contessa brewer >> hi. russia's condemning the downing of a syrian aircraft by a u.s. fighter. it warns russian forces will treat u.s.-led coalition aircraft and drones as targets if they operate in syrian airspace west of the euphrates the syrian jet had just dropped
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bombs near militia aligned with the u.s. military in the campaign against isis. the area around the paris shopping hot spot was shut down after a car crashed into a police van this morning. it's not clear if it was deliberate or an accident. the driver of the car reportedly is in police custody more than 30 people were injured after a deck collapsed in kalispell, montana. the group attending a memorial service at a lodge, look at that officials believe they were just too many people standing on the balcony. >> and what a game for the wnba. dianater osy is in and out league's all time leading scorer the feen irk murcury guard scored 14 points in the first half against the lakers. she's racked up a total of 7,494 points in 13 seasons she's got 13 seasons as a professional athlete now she's probably thinking show me the money you know what wnba players make? less than $100,000 max salary cap
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steph curry made something like $11.4 million last season. that's our cnbc news update for this hour. >> more people watch but that is a gender gap >> absolutely. well said. when we come back, a lot of headlines overseas to day. we go live to the paris air show with a special guest when "squawk alley" comes back. a us,
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the paris air show is under way right now. let's send it out to phil lebeau with a special guest there. >> sayer yashgs thank you very much a lot of people have been saying wouldn't it be great if we could have supersonic planes return and once again shuttle us to super high speeds around the world? the ceo of boomtechnology is out to do. that you're based in denver. you believe the future is with a supersonic plane, correct? >> yes it's been 50 years since we had a speedup in air travel. it's about time. >> give me parameters of when we may see your plane how quickly could it change a flight from san francisco to japan? >> absolutely. so we're flying our first prototype end of next year this is not something that is science fiction or decades off this is going to happen quickly. so we're looking for next year and passengers in the early 2020s. that flight from san francisco to tokyo that takes 11 hours today shrinks to less than 5 1/2. that means can you catch a morning plight from san francisco and make a breakfast meeting in tokyo and still be home by midnight.
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>> 2.2 mach. it is profitable unlike the concord? >> concord was zinld half a century ago with slide rules and wind tunnels today we have new materials, better engines that adds up to a 75% reduction in operating costs which means a ticket that costs $20,000 on concord can be $5,000 on boom. >> we talked to john krueger who you are familiar with. and says it sound great on paper. i'm really skeptical that hyper sonic or supersonic flight could be brought down to being effective on a mass scale. >> well, it turns ought we have all the technology today to do it we have the materials. we have the engines. and just a matter of putting the pieces together. >> you think the demand is there? >> absolutely. for the similar price point to what you pay in business class today, who wouldn't want to get there in half the time >> how quickly would the airlines want your supersonic jet in their fleet and how big of a range are we talking about in terms of potential orders >> yeah. they would love to visit last
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year because every airline today is flying around about the same airplanes between the same airports with a very similar onboard product. there is no differentiation. and real differentiation will be flights that are half the length. >> half the length and then how much would each airline want >> the third party projections from boyd groups say 1300 aircraft so this is huge whuchlt look back at history when flights get shorter, people choose to travel more often n the first ten years of the jet age, travel across the atlantic or travel to hawaii went up six x. >> the ceo of boom technologies. they think they could have a supersonic plane built and ready for commercial traffic by short time after 2020. back to you. >> we all want to get wherever we're going faster thanks again and back to d.c. some of the biggest names in tech gathering at the white house now for the meetingst american technology council. cayla is live at the white house.
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cayla? >> john, we're still waiting for the ceos to trick until here at the white house. the meeting is expected to begin in just about 90 minutes it's expected to open with remarks from jared kushner, the president's son-in-law the attendees are going to range from companies like microsoft, amazon, oracle whose co-ceo we saw entering the white house just a couple hours ago. the topic is modernizing the government's infrastructure. 70% of what the government spends on technology it uses to patch up old systems so they're discuss nug contracts, how to brit government's infrastructure into the 21st century don't expect any specific deals to be inked or announced this week despite the focus on hard assets of the government and of making the government's platforms easier for users and easier for data to be harnessed from our reporter learned that facebook's ceo was invited but could not attend or declined to attend today. so certainly that will be interesting.
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we do expect that despite the narrow focus of today's event and despite the inclusion by the white house as immigration reform is one of the topics, expect ceos to be taking side meetings with top members of the white house staff. that's the expectation of what he was doing here so early despite the meeting not kicking off for another 90 minutes carl >> all right kale yashgs we look for arrival ands see if we can get any clarity on what the breakout sessi sessions will be all about let's get a market flash. >> carl, we're watching shares of snap. pretty high. 2.5% now after announcing that time warner inked a deal it with for shows and advertising. "the wall street journal" citing sources say it could be $100 million deal shares of snap with electric low of $17.04 at the open. they're now $18 and higher there is potential for hbo to develop other shows but still an interesting partnership here for
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sure we'll bring in more details as we know here more on our side. quk alley" is back right after this break keep it right here
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coming up, the tech fund manager that is 99% of his peers is selling shares of amazon, so should you as well plus, what could be most important signal to follow before buying or selling a stock? and halftime trader josh brown reaches his boiling point on a big name dow component
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"the halftime report" at noon eastern. we'll see new 15 >> all right scott, thank you very much let's get to the cme group check in with rick santelli and get the santelli exchange. rick >> i'm not talking about football players and models, i'm talking about models like the fed uses the economy before the crisis and the economy after the crisis, whether you look at the united states and looking at the eu, japan, china, they're different. it's very difficult to calibrate monetary policy, especially addressing a crisis when anything is on the table most things will be tried. but the issue isn't trying something. the issue is trying to try something else now if we look at post crisis, several things jump out at us. inflation atleast defined and looked for by the federal reserve isn't enough for them to
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really move into what they consider the 2% target i've had e-mails that bring up accounting this isn't something we talk about very much. but it goes right to the point of pricing pressure and inflation. consider a car and 2017 and consider a car in 2000 lots more features, lane change features, stopping if the car is too close in front of you much those accessories, those add ones all cost money but, yet if, you look at the price of that car in 2017 with those features, it's adjusted hidonically meaning they're not just out and out price increases bauer you're getting more. that is a good and bad thing especially, especially nowadays when i.t., the nasdaq is finally awoke afric
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awoken from its 200 crash. most of them have issues of pricing. going down whether it's the likes of verizon. i just saw an article in the journal. a compact computer when they first came out, how much twhoe cost you look at the fed's 2% inflation target since that time, this machine should cost $4,000 but an equivalent machine costs one quarter of that price. that is a huge issue i think that the fed needs to think outside the box. but as my guest jim karen from morgue an stanley said earlier today, probably a lot easier for a new fed chairman so if thinking outside the box is a good thing. we may have to wait until february 2018. john, back to you. >> all right thank you, rick. when we come back, diesel peltz an tow the new app is aiming to chgehe concert goeg experience "squawk alley" is back after this they are the natural born enemy of the way things are.
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yes, ideas are scary, and messy and fragile. but under the proper care, they become something beautiful.
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for years, centurylink has been promising fast internet to small businesses. but for many businesses, it's out of reach. why promise something you can't deliver?
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comcast business is different. ♪ ♪ we deliver super-fast internet with speeds of 250 megabits per second across our entire network, to more companies, in more locations, than centurylink. we do business where you do business. ♪ ♪ snapchat, facebook, twitter, they use location base technology and now entertainment and sports companies are looking to join the trend. rock nation, msg, live nation is funding a new start-up that helps you find your friends at events and concerts. for more, we're joined by diesel peltz, co-founder and ceo of insight applications, also son of nelson peltz. >> thank you for having me on. >> tell us a little bit about how this app you're pitching and getting money from big investors
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works. >> sure. so it's really about not connecting people digitally online like other social media products but helping them connect in real life so it's about answering the two most frequently asked questions you have with friends, where are you and questions you have from your friends where are you and what are you doing? you can see where your friends are in realtime and message them to help meet up and see what's happening in your network. >> so if you're at a concert, it helps you find your friends. >> it helps you discover who else is there, discover what concerts or events may be happening in your area and see different angles of that event, backstage, what's happening from different perspectives at that event. >> i'm trying to think about advances in the technology needed to happen to make your app possible what were they >> sure, so two things, mainly really about creating a technical experience that was not only battery efficient, but location accurate. feature google io last year mainly for those reasons and it's allowed us to have people share on a consistent basis where it's valuable and not draining your battery. >> diesel, how do you solve in
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indoor location problem. because gps doesn't work and do you need wi-fi to be on, for beacons to be around how do people find each other at these huge venues? >> we're testing a variety of different things to make sure we not only can get to the level of granularity that gps provides, but also the level of granularity of what section or seat you may be sitting at >> so how did you court live nation, roc nation, and what sort of partnership are you going to have with them as investors? >> sure, they're shareholders and investors with our company we've been testing their product at our different events and venues and have been seeing the value it's driving to their end consumer at those contexts, and not only that, but their everyday life and the partnership we'll be having with them is helping roll out our product to their hundreds of millions of fans globally. >> amazon wants to buy whole foods. how much do you expect apps like
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yours to play in that kind of environment. where maybe people want to make the transaction digitally, but they're looking at produce and feeling it with their hands. >> it's a huge part of our product, specifically. so our product is about taking things online and bringing them offline. and we think there's a big opportunity around integrating relevant goods skpfss is on to our platform so whether it be discovering a new beyonce concert, to be able to buy tickets seamlessly through the platform is something we're really interested >> are there certain artists who are especially interested in furthering this technology those are big pushes when they push >> definitely. and we've been testing with a handful of talent through our partners and -- >> examples? >> i can't share, but what i can say -- >> when he's ready, we'll bring them on. >> we'll be back here to announce a few folks who have been great and are not only excited to be users of the product, but get involved on a much deeper level. >> and how big do you expect the adoption of this kind of technology to be and i wonder if we run into
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privacy concerns at all. >> i think privacy is something that's really important to our product. it's at the forefront of everything we do and one of the reasons why we don't think a lot of other location shares services have been able to be successful so full control of when you're sharing your location, who you're sharing it with you and what type of content you're sharing. we fundamentally believe everyone wants to spend time with people we care about in real life. >> so the app is live? >> it's not currently available for everyone to use. we're testing it privately and we'll be launching it soon >> we'll keep an eye on it inci insite is what it's called >> don't miss jim cramer's exclusive with lloyd blankfein of goldman sachs tonight on "mad money. that's 6:00 p.m. eastern time. meanwhile, dow is up 111 close to session highs we're back in a moment [ indistinct chatter ]
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>> announcer: treasury secretary steven ma nufnuchmnuchin, firstc twitter is set to debut a new ad tonight and the company is not ignoring the trolls ♪
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>> canceled, guys. you should do angels >> cocoa butter kisses >> no, no problem. we should start with no problem. >> you don't want it to be crooked! >> how about a new song with real instruments >> going to debut tonight. the company's marketing campaign is see every side, but acknowledging in some part that part of being on twitter is dealing with feedback that is snarky, maybe, a little bit here and there. >> yeah. all real people, though. no bots featured in this commercial so i don't know exactly how accurate -- but it's fun ideally, that's what twitter wants to be. and perhaps if more real people dive in and act civil. >> there's a difference between snacker, trolling, and being mean and vicious and vitriolic and that's, i think, one of their bigger problems. and they walk a fine line, as do
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a lot of these social media companies. >> we'll see what it does for ebb gaugement. twitter us up better than a percent early this morning, on a day, john, where tech continues to repair some of the damage that's been done apple is still up 2.5% after lousy price action for really the last six or seven sessions >> it's been a funky market for the stocks that are really moving a lot of the names that are moving more are lower market cap. you see grub hub up quite a bit today, better than 4%. advisoryva, whi viva, which plays in the medical and pharmaceuticals. >> besides the stocks we watch the leaders of big tech arrive at the white house later today and pretty much all afternoon. we're expecting some more action later today. but it's interesting, this is their first formal gathering at the white house since we saw them parade into trump tower in
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december, before the inauguration so, we'll see what the body language is. how many photo opes we get we know that they're there to talk about ways to make the government more technologically savvy and more efficient versus maybe some of their own issues like repatriation. but shulurely, they'll come up they are in discussions for hours, names like tim cook, jeff bezos. >> they're not worried about it, they don't care. i beg to differ. i've talked to a couple of these ceos they are very much aware that there are some reputational risks, but they feel it's their patriotic duty in a lot of cases to engage with the u.s. government, no matter who's in power. but they're very much aware that employees are watching, customers are watching, so, you know, you see them walking a fine line. brian kranzich of intel tweetins what we're for and you have to draw your own larger conclusions. >> innovation is great and we
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can argue about how drives innovation, private or public sector, but when are we going to have the come to jesus, so to speak, on affect on jobs over 10 to 20 years as automation and robotics really catch fire >> and does that draw political scrutiny for the tech companies or are they part of the solution there. >> dow is up 112 let's get over to headquarters and the half welcome to the "halftime report." i'm scott wapner our top trade this hour, why the five-star fund manager who's beaten 99% of his peers over the past decade just sold amazon and whether you should, too. with us for the hour today, josh brown, joe terranova, pete najarian, and erin brown with ubs o'connor let's begin with the tech rally resuming today there is a look at the markets nasdaq's up 1%, joe. >> well -- >> people

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