Transcripts For CNBC Squawk Alley 20160701

Sarah. Good morning, guys. Well this was the first time we were hearing from the core of the fed. The inner circle for janet yellen, vice chairman Stanley Fisher on his reaction to the brexit so i had to start with what he was thinking when he found out the referendum results about a week ago. Listen. I saw them at 2 30 in the morning in europe and i decided i better go back to sleep because it didnt look that good. It didnt look any better when i woke up a bit later. And first reaction was surprise but extreme surprise. Does it change the u. S. Economic outlook . Well, were going to have to wait and see. It clearly is a huge event for the u. K. And its an important event for europe. Our direct trade with with britain is not going to make a huge difference to us but it could set off, theres a lot of things that will follow for brexit and europe and the united kingdom. Those are things we have to be thinking about. What are you worried about specifically . How quickly does the british economy reach its new configuration with trade and so forth . It could take a long time and manage the negotiations well. We just dont know and concerns about implications for the british example for other countries. Theres a heightened risk as an economist. If its general risk you can make an adjustment but when its something thats going to unwind over the course of time its much harder because you have to think of what are the things that could happen when. A remarkable recovery this morning after a sharp sell off on friday. Theres a feeling that Central Banks have the markets back. Thats one of the reasons. Is that true . The markets Pay Attention to what they think were going to do and as they anticipate what they think were going to do and we put our expected actions into play. If they get it right then sort of theres a more smooth inti o whaf the Central Banks wanted to do. They get it wrong then you have to readjust quickly. Theres also fear that if it does slow, the u. S. Economy which is already not experiencing super fast growth the Federal Reserve was limited and its fire power to fight it. First of all the u. S. Economy since the very bad day that we got in may on employment have done well. Most of the incoming data have done good. Its a month and a half of data but this is looking better than it had before so as we consider the effects of brexit we have to put that on that that effect on the u. S. Together with what else is going on in the u. S. Economy and probably the other things that were going on. More important for the u. S. Outlook and not for the european out tps look. And brexit by itself. Does it raise the probability of a global recession. Its another negative effect and depending on howell its handled by the Central Banks and the governments of the u. K. And europe its negative and it could be the degree to which its negative depends on policies as well. Thats a pretty optimistic note on the u. S. Economy after the weaker jobs report and also said the chinese currency has become more clear than in january even though its reaching 5. 5 year lows. Thought that was notable to a relatively optimistic and positive stake. Theyre trying to figure out what the Brexit Effect would be. Back to you. Going to take awhile to fully unwind. Thank you for that. We have breaking news and david is here to explain. Thanks. Anybody that thought the drama involving williams, the large Pipeline Company would have ended once its deal was shot down by a judge in delaware last week would have been wrong. The Company Confirming something we reported earlier. Other news organizations. Namely theres been a significant belieat the board o directors about who should leave the company. Six directors have resigned from the board at williams because they did not agree that the companys current ceo was the man that should be running the company now in a press release just released by williams announces that frank mcginn mechan mcginnis is stepping down. They all decided its in the best interest of stockholders to resign from the board of directors Effective Immediately because they did not agree with the future of the company being in the hands of mr. Armstrong. Contrary to their opinion, the remaining Board Members believe and say in a release that Allen Armstrong is the right ceo for williams as the Company Works to continue enhancing stock enhancing stockholder value. Of course williams will remain an independent company most likely. There is an appeal of the decision in delaware but it doesnt appear thats going to succeed. It becomes important for shareholders of the company. Speaking to some of the people that made a decision to leave that board, they were frustrated with what they felt like was poor leadership by mr. Armstrong citing a number of years in which the company missed its Earnings Guidance citing the fact that it will have to cut its dividend and leverage has gone up dramatically but Free Cash Flow has not followed and wondering or expressing their belief of course we expected he would be replaced as the ceo with us the deal failed to get to the finish line. When that was not the case they decided to step off. In the case of the two activists on the board it is my understanding neither of the firms they run will sell their shares. Amounting to what is a fairly large significant block. The stock 8 or 9 of the shares outstanding. They do not intend to sell their shares. They may try to see if they can galvanize other shareholders to replace mr. Armstrong as ceo but not in the board room. Once again outside of it. Interesting moves there. Not often we see those decisions made at a Major Company in terms of watching the board of directors. Half of them say were out of here. This is not a quite start to the summer. No. On many fronts which i guess bears some discussion. Lets bring in the Global Market strategist at jp morgan Asset Management and gina sanchez. Theyre joining us now. David, your thoughts on first Stanley Fishers comments and feel free to weave in if you want to talk about m a, board room drama. Some of the things that characterized this summer so far. So i think that you made a very good point which is this is a problem which is really local to the u. K. And local to europe. Brexit isnt a global issue and you have seen stock markets at least over the course of the past week. The u. S. Economy has very minimal exposure to the u. K. So we expect that the u. S. Will be fine. What i will say however is that we are still faced with relatively sluggish growth here in the u. S. But what matters to me is corporate profits and corporate growth. M a will play a large role in corporate expansion. They remain very hesitant to deploy capital given the uncertainty in the Global Economy and theyre much more comfortable as a way of growing their businesses guidance is going to be key. And here we are at levels close to prebrexit vote levels. What are your thoughts . Youre right but if you think that the u. S. Markets are stretched the u. K. Markets and the european markets are even more stretched. You look at where the s p is trading right now. Its 19. 3 times. Fair value is somewhere around 16. 5. You look at the u. K. , the u. K. Is trading at 46 times versus a fair value of about 20. Thats a huge difference. So while a agree with you that there should be some caution with u. S. Equity right now we really need to be high up the quality curve here i would say that the bet here is to be overweight the u. S. Relative to the u. K. And europe. Thats where the issues are and those markets are far more overvalued than the u. S. Markets right now. Stanley fisher said if the markets get it right. Get right what Central Banks will do then if they get it wrong you have to readjust quickly. Are you confident that the market is getting this right . Im not sure that the market is getting this right. If First Quarter Growth Numbers were weak. We saw gdp up to 1 which is half of the average growth rate we have seen over the course of the recovery but if you look at that may payroll report its very bad but when we think about whats going to happen in june we expect a nice bounce back. And theres questions as to how it will effect the u. S. I think the economy is fine. Well see a little bit more inflation than people expect. That leaves at least one fed hike in the cards for later 2016. Just to pick up on that are people getting comfortable with the idea that were going to inflation and rate of expectati expectation. And if youre looking at a situation, and further easing. And thats Interest Rates in japan and thats got the u. S. As the only safe haven asset in the world. The bid on that is going to be massive. Its going to be a hard one but there is going to be considerable demand for u. S. Treasury. When we come back why the vote to leave the euro zone could have major repercussions for the president ial election. Plus new reports that apple could be trying to buy streaming Music Service tidal and millions of people expected to hit the road this Holiday Weekend but gas prices in a few states could leave some drivers with sticker shock. Squawk alley is going to be right back with the dow still higher but off about 20 points in the past 5 to 10 minutes. Squawklley will be right back. Theres a lot of places you never want to see 7. 95. [ beep ] but youll be glad to see it here. Fidelity where smarter investors will always be. If only the signs were as obvious when you trade. 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The market is trying to recover from the shock and the longterm political and economic effects have yet to be realized. They offer a leadership opportunity in the u. S. And jeffrey, does this embolden the people in this country that say they want to take back their country . They listen to donald trump saying that or the people that watch the fall out and chaos to say maybe thats not such a good path for us to take after all . You asked two really important questions. On the chaos side. The political chaos in europe is going to extend as far as the eye can see. Its really impossible. I think the wake up call for elites in the u. S. If you look at the demographics of the people that voted leave in the u. K. , they look very, very similar to the kind of people that are supporting donald trump and then if you go a little further what you see on the Trump Supporters is they think globalization is bad for the economy and u. S. Engagement in the world is a negative. The parallels to me are striking. There are some parallels in the faultlines which were very clearly divided between a young and the old and the urban and suburban but its a lot harder in reality to speak to those disenfranchised people you want to target. Yeah. Were in a really weird place now where the democrats and Hillary Clinton will be defending globalization and donald trump as the republican candidate will be attack it so what does that tell me about trumps Election Strategy . He thinks his best chance for winning is to win the Old Industrial midwest so former industrial areas, all the voters as you said less educated and not in urban areas thats where the lead vote won in the u. K. Jeffrey is there any real defense to be given for globalization at this stage . It is under assault and from unlikely places at this stage . Is there a whole new story that needs to be told about the value of globalization or does the United States policy and goals in globalization need to change to address some concerns that were seeing from the working class . Well, im actually on the yes we do need a defensive globalization side but i think that the obvious reality is those of us in quote, unquote, the elite have clearly benefitted from globalization and probably the benefits have been enormous too. That means more and cheaper goods for so many people in this country. And theres some losers as well. I think it means that leadership in the u. S. Going forward will require two things. And updated vision of the pro Global Economy view that bill clinton had in the 1990s an up stated one on the 21st century and looking at things like the Transpacific Partnership. More people can benefit. The position of lets do more redistribution i dont think is until the countrys interest and i dont think its feasible Going Forward. Donald trump said he would rip up a lot of trade agreements that are even popular with republicans like nafta and the Transpacific Partnership and he went to the school where all the big business minds went. What would you say as the dean of the school for someone that wants to rip up all the trade policies that we have currently . Well, i dont think ripping up trade agreements is a particularly good idea and it would be an extremely hard thing actually to execute and those execution risks, the sort of uncertainty about execution is what were seeing in europe today. Were just in this very clear place where theres benefits to the globe economy and benefit from in a sense but they have political power. And in the United States and you cant say globalization is good. You have to be able to deliver more inclusive growth and thats the chal heng Going Forward politically as much as economically. Its a very important debate to have. We appreciate you joining us. My pleasure. We have breaking news on toyotas auto sales. Phil has that in chicago. June sales for toyota fall 5. 6 compared to june of last year and thats better than the estimate of a decline of about 11 compared to last year. So what were looking at when you look at the mayor auto makers most of them coming in as expected. Maybe better than expected. That sales rate in the next couple of hours most are thinking its going to be 17. 1 and 17. 2 million and well get that in a couple of hours. Back to you. Theyre coming in fast and furious this morning. We appreciate it. When we come back its almost time to hit the road and some drivers wont believe what it will cost to fill up the tank. And later on first beibs and now apple might be interested in buying tidal. Were back in three minutes. [bassist] two late nights in tucson. Blew an amp. But good nights. Sure,musics why we do this,but its still our business. We spend days booking gigs, then weve gotta put in the miles to get there. But its not without its perks. Like seeing our album sales go through the roof enough to finally start paying megs little brother i mean,our new tour managerwith real,actual money. We run on quickbooks. Thats how we own it. Travellers will be gassing up their cars before they hit the road for the Holiday Weekend. Greg, have to tell you, i always thought it was a scam when oil prices would fall. It seemed like the prices at the pump stayed high for way too long but this time oil prices are going up but the prices at the pump have stayed cheap. What is going on . I know it is startling but the reason were seeing this is simply because supply is out pacing demand right now and its been that way for quite awhile. Not just in the United States but really on a global level and thats one of the reasons why crude oil prices have much more downward pressure on them right now even with consumer demand as high as it is. And youre saying you expect these low prices to continue into the second half, even into the fall because demand is not going to get any stronger. What gives you that kind of confidence . Well, you know, we typically see the highest demand during the peak summer driving season. Right now demand is matching the highest we have ever seen. Were at 9. 8 Million Barrels a day of gasoline demand. That matches the record we set in august of 2007 but its very conceivable that well hit demand levels close to 10 Million Barrels a day possibly surpassing that level but even if that happens theres enough inventory to more than meet the demand and what generally happens in the latter part of the year t second half is that once you get the hay boar day weekend behind you we see a significant decrease in consumer demand and then you have refineries able to put cheaper gas back into the market. The winter blend gasoline that the epa mandates, that pushes gas prices lower every year. Typically in the fourth quarter. So should we expect that this has implications for the way people conduct their Summer Travel . Maybe more impulse, trips to the coast for a weekend . Could this really effect local economies . And the tourism economy that way . You know thats a great point. Thats one of the things that we believe. That the low prices we have seen for such a long period now the National Average now is almost 50 cents less than where we were a year ago. Because of those low prices thats really serving as a catalyst for additional Leisure Travel so people are instinctively saying to themselves the prices arent going to get much better than what we see now. Lets just hit the road. Theres a report today that the California Attorney general subpoenaing refineries out there to try to get information as to whether they withheld gasoline from the market as a way to prop up prices, just from your view of gas price trends is there anything to suggest that maybe theres something here . I dont know if there is. This is not uncommon. I mean, the attempts to investigate those types of accusations particularly in california these prop up every couple of years but nothing ever seems to materialize from them. All right, gregg, thanks so much for that. Prices so cheap might just drive all the way this weekend and get my wallet back. Meanwhile we have breaking news on tesla. Back to phil in chicago with that. New information coming from reuters and an interview that reuters has done with the florida Highway Patrol regarding specific details of the accident involving a tesla model s in auto pilot mode that collided on a rural highway in florida on may 7th. According to the florida Highway Patrol a digital video displayier was found in the tesla model s involved in the crash. Why is that significant . Because the truck driver sold the Associated Press that he believed that the driver or the people in the model s was just one person watching a harry potter movie and the video disk player was not playing at the time. Theres no indication whether or not the driver was watching it when this took place. Theres no dashboard cameras. No on board cameras in the model s. So theres no way of determining exactly whether or not the driver was paying attention and one last thing, the black box data recorder which really records everything that happens all the way up to the moment of impact, all of that information has been downloaded by the national Highway Traffic Safety Administration and by its investigators. That happened about a week ago. So a few more details coming out about the circumstances involving this accident and whether or not auto pilot may have failed, may not have failed. Driver error. Some of those things are starting to come together a little bit right now. These black boxes if i understand it correctly tell us things like did the driver hit the gas or the brake with what kind of force but is it going to tell us whether the driver was paying attention . Since i dont know if there are cameras or sensors that are going to indicate where the drivers eyes were. Maybe his or her hands were on the wheel but we dont know where the attention was at that moment. It wont tell us if the driver is paying attention or not paying attention. It will tell you the speed and tell you whether or not the auto pilot system sent an alert to the driver or the car. We see a truck up ahead or did it not recognize that truck as tesla points out because it was a white tractortrailer against the brightly lit sky. Did that make the cameras not pick up the truck . It will pick up a lot of details in terms of what was furngsing, how the car was functions before the collision and as the collision happened but it cant tell you whether or not the driver was or wasnt paying attention. Even tesla said that auto Pilot Technology is still in a public beta phase. Right. Thats true. Thats true and theres people who have sent me tweets or they have emailed me today saying you cant have technology out there that has not been fully verified and 100 certified. Thats not how it works in the auto industry. Auto makers and their surveillance myers as they are developing technology, they put this technology through testing. It is at a certain point an agreement between the auto maker and the public and regulators that we believe this technology will work. Its not as though they just say well we think it will work. Just throw it out there. So theres people hah think that these devices and this technology is certified by the federal government. Thats not how it works. Well learn a lot more on this investigation. For now, phil, thank you. Still to come on squawk alley its day one for trading. The second half of 2016 and were counting you down to the european close. More squawk alley coming up after this. Hiim here to tell homeowners that are sixtytwo and older about a great way to live a better retirement. Its called a reverse mortgage. Call right now to receive your free dvd and booklet with no obligation. It answers questions like. How a reverse mortgage works, how much you qualify for, the ways to receive your money. And more. Plus, when you call now, youll get this magnifier with led light absolutely free when you call the experts at one reverse mortgage today, youll learn the benefits of a governmentinsured reverse mortgage. It will eliminate your monthly mortgage payments and give you taxfree cash from the equity in your home and heres the best part. You still own your home. Take control of your retirement today hello, everyone. Here is your cnbc news update at this hour. Russian foreign minister meeting with his turkish counter part in sochi russia. This as the two nations move quick tloi tly to try to normal relations. The two countries agreed to restore their antiterror cooperation. A naval ship accidentally fired a super sonic missile in the direction of china killing the captain of a nearby fishing boat. The patrol boat launched the missile during a training exercise. An investigation is under way. The theater chain cinemark is asking the victims and the families of the Movie Theater shootings to compensate the company after a failed civil lawsuit. It wants to be reimbursed. 12 people were killed in the attack. The fda approved a drug that helped calm dogs traumatized by loud noises. It treats a condition that impacts one third of dogs. That condition is caused noise aversion. And that is the cnbc news update this hour. Back to squawk alley. Thank you, sue. Lets get over to john with breaking news out of washington. We have just heard from attorney general Loretta Lynch from the aspen ideas festival where she was interviewed by our colleague. She acknowledged the problems with the meeting that she had with former president clinton on the Phoenix Airport tarmac a few days ago which has gotten a lot of criticism from democrats and republicans alike. She said it had been painful for her. It cast a shadow over the email investigation going on within the fbi and the justice department. She said she would not rekuz herself from the case but she would accept the recommendations of career prosecutors on how to proceed once that investigation is concluded. Didnt say when that was going to be so she was hoping to diffuse the controversy by fessing up to the problems associated with that meeting. Well see whether that satisfies the critics. Do you think this is likely to put this matter to rest at least for now . No, i dont. This was the appearance the appearance of this was very bad where you have the former president married to the person that hopes to be the future president who is being investigated by the attorney general. Loretta lynch happens to be somebody that was appointed to the bench appointed us. Attorney by former president clinton in 1999. So there is a prior relationship there. She said that the meeting was purely social. Nothing has come out to contradict that but the appearance is very bad and by the note of contrition she was striking she was acknowledging that. I would expect the criticism to continue and continue pretty aggressively certainly from republicans and from some democrats too. John harwood in washington. Thank you. Markets minutes ago closing in the u. K. And across continental europe. The first full week following that historic brexit vote. Stocks higher wrapping up their best week since late may despite that monday post brexit sell off. Londons ftse posting the strongest week since 20 is 1. Up 7 outperforming europes Broader Market stock 600 index by 21. Earlier today George Osborne told Business Leaders hes abandoning his goal of achieving a Budget Surplus by 2020. Citing likely economic fall out from the brexit vote. The jobless rate fell slightly in may to 10. 1 . Thats the lowest level. The race on the bottom here. Its amazing. The dow and the s p getting closer back home to erasing those losses. All the indexes year to date as we begin the second half of the year. Can investors begin to relax this long weekend. With us to talk about that is the trek to of operations at ubs. We had follow up to the upside today. The market got that better than expected ism number today. Lots of talk of Central Banks trying to get easier in some fashion or another. Is it a heads i win, tails you lose response by traders here . The Brexit Threat is not at center stage. People finally figured out that nothing happens until the british pull the trigger and start the process working. Now what i think viewers and investors probably want to do is keep an eye on it because while brexit is not center stage were beginning to see the run for Prime Minister and each of the candidates may wind up saying something about how they plan to implemented brexit which then could bring up the consequence without actually pulling the trigger so well watch that. The other thing, were going to watch next week very closely as oil, theyre very strong rumors that the Chinese Strategic Petroleum reserve just about topped out so if they stop buying and thats in the 100s or thousands of barrels they stop buying them well see added pressure on oil so thats something theyre going to look to. What about the bond market . The 30 year in the u. S. Hit a record low yield earlier today. We had a strategist that said were going to be the only place on the planet with positive yields and thats going to cause a pile on. Its attracting money. Its very powerful and its going to keep doing that. So, you know, with all apologies to janet yellen it doesnt matter what the fed thinks. Rates are going to stay low. Did you hear anything from Stanley Fisher today that changes the view . Not at all. The only thing i heard from him was a mild frustration that they couldnt get things going. The market is more powerful than the fed. Thats the problem. Now clearly he doesnt like being sidelined. Seems thats the case. All right. Thank you very much. Appreciate it. When we come back, tim cook reportedly at least considering teaming up with jayz, kanye west and madonna to take on spotify. Why the Company Might be interested in buying tidal, next, but first, rick santelli, what are you watching today . Negative rates take over most of europe. Im watching our 30 year bond actually come off a little bit as it moves back toward the 2. 25. But on a week of brexit all i can think of is the fed cant fix it and the fed cant inflate it. Thats what were going to talk about after the break. Coming up on the Halftime Report. The markets are on pace for the best week since 2014. Can you believe this rally . Are bonds flashing a giant warning sign . Plus one analyst says now is the time to buy netflix. Well debate the call of the day. And as morgan rates near all time lows its time to get into the home builders. All that and much more top of the hour on the Halftime Report. Back to you. New reports to buy jayzs Music Service tidal. And spot tpsify and pandora. And strong ties with artist like kanye west and madonna. Many came on stage with jayz in what many judged to be a disastrous opening molt for the service. The whole idea was to give artists more leverage and and what to make of the possibility that theyre selling out. It is the main appeal and the people that want to get behind the upstart and give it unsentive and deliver to apple. If i were jayz which im obviously not. Its not obvious. Maybe not to some of our viewers but to those that heard me rhyme its obvious. And apples willingness to do that. Id say last hour its to sell out to the likes of amazon but well see where this goes. Does it not fit into apples brand of what it used to be of being more generous to content creators versus other companies . That could be true but apple has a problem where they tried to be more generous in the books business and drew attention from the feds so how generous can they be as the big dog in this race. And this is a transcribe yall view. A lot of angst surrounding it because people are so bound up in what apple wants to do in every aspect of its business. Lets get to someone else with swagger. Rick santelli with the santelli exchange. I really enjoyed the interview but i have to say as calm collected and intelligent as he is theres not much anybody could do at this point. You know with brexit i still say, i hear guests say this is really about the u. K. And its not about politics but finance. We have given up some of our financed nationalism to the contagiousness of other central bankers. Today its about the can fix it, why . Janet yellen told us that and everybody makes mistakes but this is the Federal Reserve. S 4. 5 trillion of money and im sorry, i dont need to have the answers. They need to have the answers and ill say it a million times, everybody got it but janet yellen. The fact is this is a problem and they cant fix it. It means most likely well be relegated to more qe if things deteriorate or negative rates. Stan fisher didnt bring up negative rates but everything about a crisis, all the crisis, never let it go to waste and nobody complains and nobody is talking about it yet. Why cant they inflate it . Think about globalism. In the hay day toward mid 90s toward 03, 04, china i used to watch their data and even in the plus the expansion mode of globalism they were exploiting lower prices. Think walmart. Every day lower prices. Were in a contraction mode of places. Everybody trying to weaken their currency. Whats going on . You can fight a tidal wave of globalization and deflationary pressures. One country gets paid less. Heres the wildcard. If all of this has a nationalist tone to it were probably going to see less globalization. Lets keep it simple folks. If every form of globalization price form of globalization prices goes down, go reverse, what do you think happens . That is somebody central bankers ought to talk about. Jon fortt, happy independent day, happy birthday, america, 240 years. Well have 2400 more and stay on top. Back to you. Indeed. Have a great weekend yourself, rick. Thats for that. When we come back, jumped from Goldman Sachs to a startup sold to twitter and then facebook. Now out with a book on the inner workings of silicon vaeflley. Next on squawk alley. Thank you. Ordering chinese food is a very predictable experience. I order b14. I get b14. No surprises. Buying business internet, on the other hand, can be a roller coaster White Knuckle thrill ride. Youre promised one speed. But do you consistently get it . You do with comcast business. Its reliable. Just like kung pao fish. Thank you, ping. Reliably fast internet starts at 59. 95 a month. Comcast business. Built for business. Our next guest left his job at Goldman Sachs for a career in Silicon Valley selling ad techs to twitter. Now hes out with a tellall book called chaos monkeys the author joins us now. Antonio, got to ask you, fascinating passages ive seen from the book itself. Youre pretty critical of the sort of cult of personality as facebook. How different from the way Silicon Valley has long been, how apple was under steve jobs and flying a pirate flag . Is it really that much of a departure . No, i really dont think it is, actually. Like famous investors have said, every successful startup is a cult. In that sense facebook is very much like previously successes like apple, actually. So then what would your criticism be of the way Silicon Valley is . Could they, in fact, be as innovative a place as it is, if there werent so many true believers behind and idea thinking that a social network that might have started off with lower passions actually could change the world . Yeah, you know, i think what one thing about Silicon Valley, i dont know about the culttype personality. I believe in it as much as facebook and that is Mark Zuckerbergs genius, creating a company and culture everyone is motivated to give everything for a really ambitious vision. Silicon valley is assumption of meritocracy, if someone succeeds due to skill alone. Reality, happenstance, fate, good luck, good timing all play as role. And narratives, two companies start, one works well, it win. A story from steely eyed vision to flawless execution, frankly a lot of flailing and floundering along the way. In your stint in Silicon Valley, anyone you left with high regard for . Absolutely. Like i said, zuckerberg i think is a genius. Samberg very good at her job. Basically managing a complex organization with a lot of competing egos, and also being sort of the righthand woman to mark zuckerberg. Theres a lot of people i met. Frankly, the people i was most impressed by, frankly, some of the early stage Startup Entrepreneurs with not a lot of mow meant, vision and a little money, and try to make it happen. Some of those become the stories you would write about or talk about, but some dont. Watching that process happen is, to me, really the sort of more courageous and inspirational thing i saw in Silicon Valley. Interests of full disclosure, how much Facebook Stock did you hold on to, if you dont mind saying . I own no facebook shares whatsoever right now. Did you sell in a good price . Right after the ipo . How much did you believe in the company you talk about being around facebook, right at the ipo was about to happen . Right. No. I mean, i still, a massive jump in price. Reality in the book, i left in the middle of 2013, revenue was strong but it wasnt the sort of massive waterfall of revenue wed see later. What happens basically, facebook went completely mobile. A surprise. No one at the time, if they were honest, predict that 80 of facebook usage and eventually monetization would come from mobile. Not the numbers at the time. In the span of a year, facebook went from a desktop to a mobile company and Monetization Team pivoted from desktop to mobile. Something they had the right to be proud of. Indeed. Leave it there. Antonio garcia martinez, mazenating look. Thanks. More squawk alley is next. [ beep ] but youll be glad to see it here. Fidelity where smarter investors will always be. If only the signs were as obvious when you trade. Fidelitys active trader pro can help you find smarter entry and exit points and can help protect your potential profits. Fidelity where smarter investors will always be. Kicking off the second half of the year, at least in the first half of the trading days stocks seem to be off to a positive start, though the dow is off of its highs. It cracked above 18,000 briefly, guys. See where it goes from here. 1,811 where it closed before the brexit. If we get there. Hand it over to the Halftime Report to see where the day goes from here. Have a great Holiday Weekend. Welcome to the Halftime Report. Im melissa lee in today for scott wapner. With us, our panel. Stocks moving higher for a fourth day pacing for the best week since 2014. At the same time bond yields around the world continue to fall hitting record lows. So do you believe this rally, or is the bond market telling us Something Else . Stephanie what do you think . Encouraged by the rally for sure and the snapback from last week but dont think were out of the woods, frankly and i think earnings seaso