Usa, huntsville, alabama, 11 00 a. M. On wall street. And squawk alley is live good Tuesday Morning welcome to squawk alley. I am Carl Quintanilla with leslie picker, mike santoli at post nine of the New York Stock Exchange jon fortt is on assignment, Morgan Brennan is in huntsville. The resurgence of rocket city, usa. Morgan reporter hey, carl, thats right. With a population of fewer than half a million residents in huntsville, alabama, one could be forgiven if they dont realize how significant this area has been to modern american history. Before the 1950s, it was watercress capital of the world. The army moved a Ballistic Missile program here in the 1950s, into the 1960s. Nasa was established the Marshall Space Flight center, began to develop rockets for major Space Programs like apollo, and that legacy has continued all the way into today. Theres Something Like 400 aerospace and Defense Companies operating in the huntsville, alabama area today part of the reason this is called rocket city it is very much still a government town. Red stone arsenal, the u. S. Army post here is its own census designated place, it is the top employer in the area nasa says Marshall Space Flight center has a total Economic Impact in the area nearly 4 billion on madison county. But the reason we are here today is youve had this resurgence in defense spending, including on priorities like next generation missiles, hypersonic missiles which huntsville is well positioned to capitalize on. You also have this entering of a new space era, commercial space has been key to that process it is part of the reason you see Companies Like blue origin make Major Investments in the huntsville area. And then as we talked about last hour, all of this helped attract other companies and other industries to huntsville as well so youve seen it translate into the numbers. Strong economic growth, population, wage, job growth, from 2000 to 2017 that outpaced the National Rate by two times it is two times stronger you have employment rate of 2. 1 as well. And thats exactly why we are here in northern alabama and huntsville to talk about all this you could call it a case study for other parts of the country trying to lure business and grow their base later in the show because lawmakers are crucial to all this happening, were talking exclusively with senator Richard Shelby who is also the chairman of the Senate Appropriations committee. Going to talk about whats gone into luring business to huntsville, going to talk about trade as well, and also government funding since he is overseeing appropriations, what it will take to move past the continuing resolution that expires next week. Also, sat down exclusively with blue origin ceo bob smith. Were rolling out that interview and talking about that company and all the initiatives afoot there, including one of their major Revenue Streams, closest to realization, the rocket engines, and which is the source of a 200 Million Investment here morgan, we cant wait such an important story. No one brings it to us like you do Morgan Brennan obviously in huntsville more to come this hour. Disney, meantime, delivering the latest volley in streaming wars, launching disney plus today. They hope to capitalize on the popular franchise like pixel, marvel and star wars. Joining us, former netflix Vice President of content, elizabeth bradley, helped bring a number of International Shows to the streaming platform great to have you. Thanks for your time today. Thanks for having me, carl. What do you think they need to accomplish here in the first couple of quarters of the service . Well, i think it is incredibly fun offering, the disney brand is beloved and well known. They have awed yenlss that love star wars, marvel content, diversity of the brands disney has. I think the primary move is to capitalize on the audience who already loves their content and bring it to them in a different format, obviously streaming over the different screens, devices and televisions. They need to ensure that they deliver that brand and it will be fun to watch as they do it at an economical price point, 6. 99 a month. Should investors that own netflix or disney or both be on the lookout for higher churn at netflix . I think for consumers, it is opportunity for more choices, diversity. Disney is coming out at 6. 99 apple launched at 4. 99 median netflix plan is 12. 99 at this point i dont know that for consumers it is either or. It is an opportunity to try different plans and add to them, rather than removing one to add another. So it is a great consumer proposition at this point where people can sample multiple services instead of having to decide at this point elizabeth, obviously disney has more experience than anyone creating content for distinct audiences, have audience recognition. Trying to find points of distinction between the netflix approach and what advantages netflix has having been up and running in this area and i guess data would be one of them. As somebody that created for netflix, did you have a lot of exposure to consumer data, preferences, trends, and does that help at all or not much issue from the original content side well, again i think disney is as aware of their brands and how they resonate with consumers, it is part of why we see them go direct to consumer understanding the information, why your brands resonate with different consumers, why marvel films continue to do well, why make a Marvel Television series. Certainly watching that information that you get over an Internet Service will help to have faster information, but i dont think theres anything new that disney doesnt know their brands resonate. What you look for when making a show is whether or not consumers fall in love with it, do they talk about it, tell their friends. Do people get excited on a mass level. We heard about it in terms of trailers and it is out on the internet, now we can see how consumers react, will they tweet about it, create word of mouth that benefits disney thats what each service has to think of for content how do you continue to get word of mouth to increase presence of your service. Opportunity for streaming is more global for the streaming platforms. You brought a bunch of international content, sex education, alias grace have you found that strategy useful, do you think thats applicable to the various streaming services that are currently in the works to be launched or being launched today . Well, i love that you asked that obviously it is an area that im passionate about what i think is exciting, you said it perfectly, the opportunity in streaming is a global opportunity what youre looking for is an audience around the world to be attracted to your content. Disney, for example, has incredible brands that resonated in theaters globally now the opportunity to go to streaming, when youre on the internet, you can have a more segmented audience, look for differentiated content i think having global content shows potentially originate out of spain, brazil, japan, india give you an opportunity to diversify the types of stories youre telling, and having different stories and different Story Tellers will inherently attract a diverse audience which is what you need to become a global presence. Disney talked about reaching 60 to 90 million subscribers in the next five years. And twothirds of that ideally outside the u. S. , to do that i think you have to have diversity of content in terms of the types of stories youre telling, the types of Story Tellers youre employing. Does that work for someone like disney that has a younger demographic that may find it more challenging to have subtitles or dubbed voices, Something Like that . I think it absolutely does. We have seen it to a degree when they played even in the theatrical releases, toying with different stories, theres always solutions to figure out dubbing. The u. S. Audience in particular isnt used to watching dubbing, theres no reason that cant continue to evolve if there was a farcy series from india, no reason it couldnt be dubbed back to english, especially if it was animated. If anyone, disney will learn to excel as diversifying languages and origins of story telling. Finally, theres a running thesis that streaming television is being used to sell products, park admission or merchandise at disney, Wireless Services at hbo, prime memberships at amazon netflix is just selling netflix. Does that mean theyre going to approach the business differently than their rivals . Yeah. I think thats a great point, carl every player in the streaming space has a different set of priorities for the overall business, and each of them, disney obviously is thinking about theme parks and products and enhancing the overall disney brand. Apple is quite consciously thinking about hardware. I think we see that from them offering content free to anyone who is buying a new iphone amazon as we know is being effected across a wide variety of markets each of them with different priorities netflix at this point is a pure play streaming service, thinking about how can you have incredible content to keep people streaming i dont know that it creates a worse or better opportunity. Theyre thinking how to capitalize businesses. It will create a fun, diverse amount of content. Hbo max. Watch them come online take that series and diversify at t is looking to grow their business everyone has a different set of priorities it makes more opportunity with the challenges incredible time so much fun to talk about, especially in the business like all of us are. Please come back thanks so much thank you for having me still to come on a special edition of squawk alley, exclusive with blue origin ceo bob smith. His take on the billionaire space race, his companys relationship with jeff bezos and amazon, and whether an ipo is written in the stars stay with us hope to amazon is publicly traded company. We engage them with the other providers. We are a mer kmant launch Service Provider hope to win their business is there a lot of talk between the companies or work or collaboration . It is a publicly traded company. If we got into that situation, it would not be good we collaborate in the same way as a satellite operator. The only reason you become public is you need to get funding. I dont think thats a problem you kind of trade control for getting funding. Our path is to become self sustaining business by ourselves so we dont rely on private funding. Would you open up to investors or vc round . We might. I dont know we can see out there. Unless we cant become a self sustaining business or need other infusion of cash, i dont know why we would. Thanks to you, we will. Aw, stop. This is why voya helps reach todays goals. All while helping you to and through retirement. Um, you guys are just going for a week, right . Yeah thats right. Can you help with these . Oh. Um, were more of the plan, invest and protect kind of help. Sorry, little paws, so. But have fun send a postcard voya. Helping you to and through retirement. [spokesman] if youve tried colleg group cheering shed, snhu lets you transfer up to 90 credits toward you bachelors degree. [woman] it doesnt matter how old you are, you can do it, you can finish. [spokesman] finish your degree at snhu. Edu lets head down to rocke city, usa and Morgan Brennan with more from her exclusive interview with blue origin ceo bob smith. Hi, morgan. Reporter hey take a look at this. This is test stand 4670. This is a site rich in space history, thanks to testing motors that powered the saturn five rockets that launched apollo astronauts to the moon. Was later used for the space shuttle. This site is being refurbished, leased by jeff bezos blue origin, speaking to the role commercial space is playing in here in hunltsville. Blue origin has been stem cea n major initiatives, everywhere from the new shepherd Space Tourism business to development of orbital new glen rocket, competing for commercial and government missions. And blue moon spacecraft which theyre pitching as part of a Lunar Landing bid that includes Lockheed Martin, but it is another business that represents one of the first significant Revenue Streams for the company. The reusable engines that make all of the plans possible. Blue origin is building them for its own rockets, but also producing them for united launch alines, the giant venture between Lockheed Martin and boeing, which is also developing its own rocket, about 30 miles from here in decatur, alabama. Blue origin is building a new 200 million rocket engine factory in huntsville, expected to open early next year. I sat down exclusively with the ceo, bob smith, to discuss the investment and how it fits into the broader strategy at blue origin take a listen. Huntsville is known as rocket city, it is deservingly so thats where much of the u. S. Rocket capability came from, going back to the 50s and 60s, thats where it all started. It has a great receptacle of talent there that you can tap into it has been decades in building. We wanted to go to where the talent is and where you get great support. Everyone from governor ivy to the mayor in huntsville are great supporters in developing the space economy there. I think huntsville is key to where were going to be in terms of engine development. Actually how we produce engines and test our engines will be key to where we have it. We will put over 300 people in that new facility, spent 200 million on it. It will be 350,000 square feet, massive capability that will anchor us into that community, it will be powerful for decades to come. Have you been able to tap into the labor pool there . What is it, in addition to the fact it is rocket city, it has history there, what is it about the area that makes it special well, the people down there are absolutely well schooled in the entire area. You dont have to do a lot of training from the standpoint of what is a rocket engine, do you have to have this precision detail we have to have to make rocket engines theres a certain intuitive sense there in the Employment Base itself. Furthermore, you attract people that want to do what we want to go do, we want to go back to the moon, build rockets. It is easy to attract great talent there, everybody has a passion that we share. When do you get to 40 engines a year were going to be there when we are at rate and flying. 22 and 23, producing at that rate we opened the factory this coming first quarter, well have a Ribbon Cutting there, and have of course everything that we need to start producing engines there. Is the u. S. Doing enough to secure space i think that space control, space exploration, commercialization has all been something that we started to talk about more today. I think were getting a much better understanding how important space is every day, whether it is gps thats guiding uber, what you do from credit card processing, from trades on the stock market that are timed using space assets all those are integral to the economy. If were not conscious about what the commercialization of space means to our economy every day, to everybody in the United States, around the world, as well as what we need to protect the assets in a contested environment, near peers are threatening those assets, it is even more important we have a robust set of launch vehicles. Lastly, long term vision from blue origin, five years, ten years, twenty years, where do you expect the company to be the thing to first ground everybody on is what were doing today which is ambitious were going to be flying people in space on a tourism vehicle, were going to be building a large new glen vehicle that will shake up the market in terms of overall capabilities we have the home engine production, what we were talking about in huntsville, a large, modern facility there. And were going to the moon. Thats going to keep us busy as we go to develop these capabilities, well become a more self sustaining business, part of where we need to be. Yes. Thats where i think were going to be. Reporter just a reminder, two years ago jeff bezos disclosed that he sells about a billion dollars of amazon stock to fund blue origin. Certainly with different initiatives, you can see that the company is moving toward more Sustainable Business models over the coming years, with all of the different projects. And we have more on my discussion with bob smith online at cnbc. Com, as well as deep dive into hunltsville. One of the other things we talked about was the new shepherd sub orbital vehicle it will be their Space Tourism service. Smith telling me that it is on pace, theyre planning to start sending humans up in that system and hopefully launch service, get it operational next year ticket price will be in the hundreds of thousands of dollars. The reason i bring it up, you have Virgin Galactic publicly traded theyre the most Comparable Companies and services to each other. Certainly being watched closely. I was going to say, morgan, for those who are looking for ways to invest in space, is this mostly about Space Tourism or commercial freight or Something Else that were not thinking of . Reporter oh, i think Space Tourism is piece one of it, right . Whether youre talking about Virgin Galactic, theyre longer term thinking aboutfaster transportation around the globe. Point to point transportation with hypersonics in the case of blue origin, if you look at each one of the projects or businesses that the company is developing now, all of it speaks to this Broader Vision around human space flight and longer term, as bezos outlined it, building the infrastructure, bringing down cost of launch, building out infrastructure to go to space and ultimately have humanity colonize space big goal. But definitely the direction were headed great stuff, morgan. A lot more ahead from morgan in huntsville she will sit down with senator shelby on the resurgence of rocket power in the United States dow up 66. Hanging onto 3101. Back in three minutes. Their medicare options. Ere people go to learn about before theyre on medicare. Come on in. Youre turning 65 soon . Yep. 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This kind of plan goes with you anywhere you travel in the country. So go ahead, spend winter somewhere warm. If youre turning 65 soon or over 65 and planning to retire, find out more about the plans that live up to their name. Thumbs up to that remember, the time to prepare is before you go on medicare dont wait. Get started today. Call unitedhealthcare and ask for your free decision guide. Learn more about aarp Medicare Supplement plan options and rates to fit your needs oh, and happy birthday. Or retirement. In advance. Third annual cnbc up start 100 list out this morning, recognizing early stage startups getting the most buzz in the value. Kate rooney has more on the next generation of potential unicorns good to see you companies on the up start list are younger than five years old, raised less than 50 million but big name Venture Capitalists are paying attention theyre investors in companies on this years list. Among the top Silicon Valley firms, Cyber Security was the most common bet. Thats the most popular sector for a list overall a few Cyber Security companies founded by Israeli Defense force alumni finance, health care, and retail were the next most popular after Cyber Security it is not just up Start Companies gaining attention. Money is pouring into early stage startups we have Health Care Companies bringing in 132 billion in the past five years. Followed by Cyber Security and retail big corporations are taking notice master card, google, Lockheed Martin were investors in at least one of these startup companies. These corporate Venture Capital arms also tend to partner strategically, they can either invest and work with the company and learn from them. Can also lead to m and a which we have seen happen to former winners. Two companies were bought by shopify, one bought by stitchfix, two on the 2017 list bought by microsoft and symantec we had high profile ceos making investments. Particul tim cook is an Angel Investor in a biotech company, mark benny who have in investor tech. Finally, this is always fun. Celebrity investments. Up start winner daily harvest, backed by serena williams, shaun white, bobby flay and gwyneth paltrow. We sit down with the founder of tundra, you can follow cnbc for more of that ill take it. Thats a great job part of our job here to help investors identify companies before theyre household names thanks. Time for a news update lets get to sue herera at hq. Good morning, carl. Good morning, everyone heres whats happening at this hour demonstrators gathering outside the Supreme Court as justices began hearing arguments on the Trump Administration bid to end deferred action for childhood arrivals program, commonly referred to as daca. It began under president obama, protects immigrants brought to the u. S. As children from deportation. Afghan president announcing that his government released three prominent taliban figures to get in sur jents to free a professor abducted in 2016 he did not elaborate and say when and where they were released. Sur gay lavrov accusing the u. S. Of trying to retain control over Oil Rich Region of eastern syria, spoke at a conference in paris. They asked the gulf countries to invest so they can create local administration based on the Syrian Democratic forces, the kurdish and others, very blunt intention to separate this part of syria and to control the oil fields there and you are up to date thats the news update this hour back downtown to you guys. Mike, back to you. Thank you very much. European markets just closing. Seema mody has the breakdown of Market Action overseas mike, look at the map with the exception of spain, european markets getting a lift on reports that President Trump is expected to delay a decision on eu auto tariffs by at least six months the major german automaker is holding on to gains. It is the auto suppliers under pressure after reporting weak results last quarter both companies announcing deeper cost cuts amid ongoing weakness in china, pointing to layoffs ahead. Different story for the technology sector. Chip makers jumping more than 5 dialogue raising full year guidance, adding that semiconductor struggles could be bottoming out. And bowed a phone is hiking outlook, citing strong sales in south america, spain, italy. Thats up 3. 5 in todays trade. As we look to german gdp later this week, more data from that country. It rebounded 20 points from october levels they point to reduced brexit risk as the reason there back to you. Thank you very much. When we come back as we have been talking about, disney betting big on nostalgia for the launch of its streaming service. Will the con detent be enough t compete with netflix and others. Major averages hit record highs on the s p and nasdaq. Were at 3099. Back in a moment gold nice rock. Its time to drop gold. Go digital. Go grayscale. The amount of Student Loan Debt i have, im embarrassed to even say. We just decided we didnt want debt any longer. I didnt realize how easy investing could be. Im Picking Companies that i believe in. I think sofi money is amazing. Thank you sofi. Sofi thank you, we love you. Disney debuting disney plus which will rival offerings from other ott providers like apple and netflix, both of which are trading lower. Joining us, Guggenheim SecuritiesMichael Morris with a buy rating with a 151 price target thanks so much for joining us. Michael, there have been technical errors this morning just after the launch. How big a concern is this for the company, especially as expectations were so high for this day so i think the technical concerns, technical glitches if you will are low concern as long as theyre shortlived weve seen some technical challenges with a number of services as they launched, trying to deal with inflow of traffic to a product that hasnt been fully tested in local market before. I think initially it is perhaps a good sign for amount of demand on service, hard to tell what has driven the glitch. Over time certainly it is important that the Service Works well for consumers do you think anyone is turned off by technical errors this morning . Echo the previous point, as long as it is contained and sign of Strong Demand for service, might not be a bad thing disney i think will be very up front about fixing it as quickly as possible. I dont know what the extent of it is, but they own bam tech which has proven to be a strong streaming platform i would assume theyll sort out the issues quickly disneys strong brand alone will continue to attract people to sign up. You said that disney is best positioned to transition to ott, relative to its peers. Why is that . I think theres no competition really i think disney is the it is such an important move for the industry as a whole. Lets not forget, it could be and will be self disruptive to traditional tv, pay tv ecosystem. Disney given a long history, decades of popular content, huge franchises, marvel, pixar on the service. All the new films when they come out, six to nine months later will come on the disney platform a constant flow of content, in addition to originals. Theres nothing to match it in the traditional ecosystem. Wondering how this goes, the company did a job of changing the conversation between the fox acquisition and launch of direct to consumer, it is no longer about cord cutting and espn. It is a flat earnings picture the next year, valuation is boosted to a point it seems like theyre already getting a lot of credit for success in streaming. Where does that leave you in terms of looking for catalyst for further up side . Sure. A great question, given that the stock does reflect some enthusiasm seen it once following investor day in april, recently after earnings people are excited about the streaming service. I think excitement about the service is warranted the point about disney being at the intersection of challenges will be on the other side of the opportunity. When we look at it, there are two things that are intentionally incremental that arent fully appreciated yet one, the fact that disney has a number of ways to win because of parks business and Consumer Products business, where they might not make as much money initially, but because they make so much more over the ecosystem, theyre in a great position. Thats probably underappreciated the second is International Growth opportunity they own hulu, own 70 of it, it has a platform similar to netflix. At this point theres nothing in expectation for its growth outside the u. S. Those are two things to keep your eye on for future growth. Tim, how are you thinking about the data opportunity here . You think investors should be pricing it in along with obviously the subscription numbers and other potential ways disney is capitalizing on this i think the subscriber numbers will become the key driver of sentiment on disney stock here on out for the foreseeable future, as long as they sustain their near term earnings which were better in the recent quarter i think you asked about use of data, access to data that disney plus and hulu and espn plus will generate, and these are kind of relatively new concepts to Traditional Media Company to own the consumer, to have rich data on what people are watching, how theyre watching it. Underlying trends on popularity of types of shows and genres and so forth, thats just data a Media Company in the past hasnt had access to. This is a triple play of espn, hulu, disney plus will give disney that. They can use that to produce different content, to understand trends, market to consumers more effectively. It is a much richer ecosystem it creates for the company. I was going to say, mike, i was given the technical hiccups this morning, i was thinking back to hot takes we used to hear about disney prior to spending billions on Park Technology and streaming technology, and that is that they werent a tech company. Their interest in parks was old school thats one of the major evolutions of the company in the last five years. I agree with that i think there are two places they worked through things first side on the parks, theyve advanced the technology in terms of ability to access parks, access your room, access rides priority, make in park purchases, all those have been on a Technological Infrastructure they developed. On the streaming video side, it still is tbd they have to prove they can run a streaming business of the size and scale theyre targeting here, but they have the band technology, they control hulu technology which is successful i think it has been yet another transition for the company in terms of what theyre capable of doing. All right well see how it goes from here. Mike, tim, thank you for joining us thank you and coming up, the president set to make a speech at the Economic Club of new york at the top of the hour. Well te yllou what to expect after the break. Stay with us by the way, shes the next mozart. As usual we were behind schedule. But sophies enthusiasm cannot be dampened. Not even by a runaway donut. We powered through it in our toyota prius. Because a stars got to shine, no matter what. Its unbelievable what you can do in the prius. Toyota lets go places. Woi felt completely helpless. Hed online. My entire career and business were in jeopardy. I called reputation defender. Vo take control of your online reputation. Get your free reputation report card at reputationdefender. Com. Find out your online reputation today and let the experts help you repair it. Woman they were able to restore my good name. Vo visit reputationdefender. Com or call 18778668555. I am Brian Sullivan. Coming up, will President Trump fuel the market higher he could he is in new york city, getting ready to speak about trade and the economy the next hour. Well carry the comments live, debate what it means for you and your money from here thats all at noon on the halftime report. Leslie, back to you. I dont know if you heard about disney plus launching. Disney what disney plus, video service. Video service, yes. We have been talking about it all morning, very excited. Thank you. After the break, senator Richard Shelby sits down with exrgan exclusively nt. Were back after a quick break et kind of car. Ladies and gentlemen for a different kind of drive. Ladies and gentlemen for the drive to create a new kind of family car, that became a new kind of race car. For the drive to rebel, zag. For the drive thats inside you. And inside us. Thats the drive under the hood of every mini. Because every mini is. For the drive. Its how we bring hope to our patients like viola. Her team treated her cancer and strengthened her spirit. So viola could focus on their future. Cancer Treatment Centers of america. Appointments available now. Cancer Treatment Centers of america. Thats it. Im calling kohler about their walkin bath. [ sigh ] not gonna happen. My name is ken. How may i help you . Hi, im calling about kohlers walkin bath. Excellent happy to help. Huh . Hold one moment please. [ finger snaps ] hmm. The kohler walkin bath features an extrawide opening and a low stepin at three inches, which is 25 to 60 lower than some leading competitors. The bath fills and drains quickly, while the heated seat soothes your back, neck and shoulders. Kohler is an expert in bathing, so you can count on a deep soaking experience. Are you seeing this . The kohler walkin bath comes with fully adjustable hydrotherapy jets and our exclusive bubblemassage. Everything is installed in as little as a day by a kohlercertified installer. And its made by kohler americas leading plumbing brand. We need this bath. Yes. Yes you do. A kohler walkin bath provides independence with peace of mind. Call. For a free kohler® nightlight toilet seat with inhome quote or visit kohlerwalkinbath. Com for more info. Lets head back down to huntsville, alabama. Morgan brennan is there, joined by alabama senator Richard Shelby morgan thanks. And senator shelby, welcome to squawk alley. Thanks for joining us today. I have been working on the deep dive feature of huntsville, alabama, aka rocket city for months i have spoken to dozens of people the one name that comes up over and over again is instrumental, couple aggrevating busine cultivating business is yours. I want to ask your role, cultivating business and bringing investment to huntsville, what you say to companies thinking about coming here well, i thank you for the compliment i have worked hard as a u. S. Senator to point out that huntsville is a good place to do business they have one of the most highly educated work forces in the nation in science and engineering and Companies Know that thats why theyre going there it all started in the aeriaeriaearl early 50s, dr. Vonn brawn and has grown, huntsville will probably be the largest city in the state in a few years yeah. Its got roots in government for sure still a government town, dependent on defense scholars, Space Programs you also have other Law Enforcement agencies that are expanding the footprint like the fbi here as well how do you think about the direction of those federal dollars to the area and what is it about huntsville thats able to collect so many of them well, it is the education, the quality of the work force, the highly educated engineers and science and so forth and math that brings them there. We also have not only the government investing there, bringing thousands of workers, we have the private sector following it, which it generally does most people in washington, most people in the country in the high tech area know very much the story of huntsville, and theyre investing there, coming there, and theres a lot of synergy between huntsville and Silicon Valley between the Aerospace Industry all over the world and huntsville, alabama. Yeah. And certainly a focus on developing northern alabama as sort of a next generation tech company. In terms of the National Security piece of this, space, missile defense, hiebyper sonic are the largest part of the Defense Budget do you worry the dod could change focus from the areas as we go into a president ial election into a president ial Election Year . I would hope not. I chair the Sub Committee on defense, which is part of the whole appropriations committee, and the security of the nation is very important. Its paramount and its the largest expenditure we do. We have a lot of adversaries in the world. Competitors, china, russia, and a lot of upstarts. And we have to be on the cutting edge and huntsville is on the cutting edge of technology as far as missile defense, as far as missile technology, the Space Commands there the fbi is big there missile intelligence is located there. Im bullish on huntsville. I think its going to continue to be the armys brainchild and thats very important for the nation. Do you worry about so much of the future of u. S. Space in the hands of tech entrepreneurs. No. I dont. We started the program, but the private sector has got a role here a lot of the stuff is to the private sector government doesnt do it all, but it has a list in what the requirements are, and they Work Together and i think working together is where we want to go and stay lastly, senator, as chairman of Senate Appropriations committee weve got this continuing resolution expiring in the coming days how do you see it getting to a fiscal 2020 appropriations deal, especially when youre balancing the democratcontrolled house on the one hand and the white house on the other excellent question. Were working hard ill be meeting this week with ar and go from thereuse and we think that funding defense is paramount were going to try to continue to do what we did last year. Thank you for putting us on and thank you for being in huntsville senator shelby, thank you for joining us carl, ill send it back to you. Morgan, our thanks to you for some great stuff and insight regarding space in the past hour as you know, the president is set to address the Economic Club of new york at the top of the hour we expect it to be an important speech for the president , aman. Thats right, theres anticipation in manhattan about what the president is going to say. The question is what is he going to say here were going to work out some audio issues the questions are, will he talk about a possible signing of phase one, any tariff relief were still waiting for news on tariffs of european auto parts and autos, ustr expected to submit a report as early as tomorrow. And there have been reports that trump is looking to delay those potentially six months once again but i think the markets will be paying close attention to any comments on trade. It sounds like larry kudlow had a significant role to play in the speech but is he going to stay on teleprompter or stick with the script or will we see him veer off a little bit and will it a broad characterization or something that gives the markets something to grab onto also expected to tout some of his accomplishments with regard to the stock market and the economy and unemployment during the speech so i think people will really be honing in on some of the trade comments as they look to push the ball forward. Some reporters in the room say theyre still seating people and its a large room. We do not expect him to speak right at noon, but were going to keep our eyes on this shot. In the meantime, the dow is up 31 points. Were back in three minutes. Ing ing stand up if youre a mother. If you are actively deployed, a veteran, or youre in a military family, please stand. 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Learn more about why you should choose an aarp Medicare Supplement plan. Call today for a free guide. The dow is up 42 points the president has arrived at the Economic Club of new york. Trying to talk to aman about the speech what should we be looking for . Reporter what you should be looking for is a Little Signal interference, so i apologize for the difficulty here. Ultimately the question is whether or not the president is going to talk about china, give us any indication beyond sort of a broad outline of where he intends to go with the trade war. We do know the president is going to talk a lot about his economic agenda and about low taxation and low regulation, this monster economic recovery that weve seen during the course of his tenure hes going to take a victory lap. One of the issues at play is this question of eu tariffs on cars thats one thing that reuters has reported today the president might be willing to back away from im told that in the early draft that circulated around the white house that ultimately they did not have that piece in the speech so well see if thats changed and of course a lot of anticipation because they have not released any excerpts and have not released any copies of the speech so we really have no idea what hes about to say, which makes it all the more interesting. Relatively leakfree. Hell have record highs to talk about. Well see if that leads him to a discussion of what the fed should do from here. Exactly no doubt about it, he probably would raise to this audience the idea that the fed has been an m impediment the markets are not really begging the fed for anything so for a while, the president s line on the fed pretty much mirrored what investors were saying, they were a little behind the curve we do expect some tough talk on usmca, which could be an interesting development. Im not sure if that moves the markets or if that is something that we just havent heard as much about. Unless its tough talk on passing this as opposed to the terms of the deal itself. Aman, you mentioned the fed and then well see, in passing and recent weeks as you know, hes raised the idea of perhaps a further tax cut going into the election cycle maybe he freshs thleshes that o little bit theyve talked about tax 2. 0. Thats seen as a campaign idea, something for them to talk about on the campaign trail next year, rather than something thats actually expected to pass on capitol hill next year because given the logistics and the realities of the fact that its an Election Year, we dont see a lot of legislation moving in 2020. But the president could talk about it and lay out what his ideas are. Aman, well be relying on you all afternoon obviously. Lets get to Brian Sullivan and the half thank you very much. And welcome to the halftime report, everybody. I am Brian Sullivan in for scott today and that is a look at the Economic Club of new york. Thats a look at about eight to ten chairs of the Economic Club of new york, which is where President Trump is set to speak any moment now as you just heard aman talk about, the president is widely expected to hit on trade and the economy. Investors not just hoping for a positive tone, but also some real and concrete details about how the trade talks with china are going, for example, who day will w