Welcome to squawk alley here with kayla tausche, and joining us here early is uber investor jason calcaneus. And so, now, with what is a new note over at bernstein putting the note at 80 billion, and saying that the daily views with the average spending 40 minutes a day on the site indicating that it is the largest music streaming music daily. Google bought it for 1. 2 million back in 2006, and it is called today after insta, maybe the best media acquisition off all time. Yes, it is clearly the best acquisition ofk the in the history ofk the. It is six twitters and tesla on top in terms of the money that google has made from it. And the service is not stopping. It is going to continue the grow, and if you are thinking of the consumers watching four television a day, they are at 20 or 50 of what the young people are watching. The interesting thing is the music. And what goes with usage, people are watching over and over, and if you are watching the accounts it is katy perry, and taylor swi swift, and em nen and watch it over and over, and it is like a tv service with a spotify or the pandora thrown in, and the red service foreclosure you dont subscribe to it, it is great. And jason, skeptical if it is worth 80 billion, and that is a couple of netflixs there, and they dont have a ton of the original content, and the analyst note that says that the average youtube user spends an average of 40 minutes aday, and i dont know if that is true, because my whole household spends 10 to 15 minutes a day on youtube, but maybe some folks on the International Hours streaming it because they act as if it is mtv, but is this overdone . Well, there is a chance that youtube will be more valuable to google than the search franchise, and that is amazing, give given the juggernaut, and money machine that the search franchise is, and people are spending a lot of time on it, and combining the branding of the videobased adver tizing with the ability to target specific groups of peoplet at specific times, and specific geos with the specific democrats. Demographics. It is going to continue to be a juggernau juggernaut, and they are going to be including basic cable, and live pictures nit, and it is the tip of the iceberg in terms of google google, and how much revenue is left inside. And what structure does that do for alphabet, and google, jason, because do we with need a tracking stock for youtube, and instagram get so big that you need a Federation Style like emc because they are such big units within the companies. Yeah, you would think that alphabet is designed exactly to spr split out youtube and give the investors some insight. And apple does not want anybody to know how big google is. And that is why bernstein had to do the research with the sample sets to see how fast it has grown. And also to combine search with youtube and make it integrated so it is impossible to be under two people at two places, because it has to be tied to the google network. So yes, it should be separate and have its own balance sheet, and be transparent, but is it no in googles best interest, because you come in to buy the ad research and you will get everything soup to nuts as a marketer. That is the challenge of the bernstein note, and acknowledged how littal they have to go on . Yes, bedesign. And jason, the shareholder kicks off at under an hour, and josh lipton is there watching the meeting. Well, donald trump is not going to be there today, but donald trump could be a big topic of conrersation here, because some activists are calling on amazon to stop selling the trump products. Ultraviolet, a group gamagainst exism is asking amazon to stop selling trumps menswear, and they say that they have 11,500 men who have signed this petition. And they have a banner to fly over with a banner that says drump trump. And the real estate mogul recently criticized bezos and the companyb who also owns the Washington Post. Well, i think that he is thinking that i am going to gof a him for antitrust, because he has a huge antitrust problem, because he is controlling so much. And it is the Washington Post that reported that trump posed as a publicist, and that is a claim he denies. But trump has gone after bezos noprofit company, and bezos tweeted back that he would is send him on a trip to space. Clearly, all eyes are on bezos to whether or not he is going to be responding to the latest bombshells of trump. And amazon is up over to the last three month, and jason, what would you do if you were in bezos position . Ignore donald trump, and let the products speak for themselves. It was horrible, and the ratings probably bore it out. And something to come out is the am mon echo refered tos a alexa, which is an Artificial IntelligenceMachine Learning voicecontrolled speaker system. It sounds simple, and it is like sonos, and siri had a love ch d child, and it is a fascinating program that this worksb and siri doesnt. It is going to be a massive interplay, hey, tell us what is the stock price of such and such, and just like the computer in star trek but it is a mayor aws product allowed to everybody on the cloud. Right now, it is great to have it set a timer, and tell this joke and define this word and play a podcast. And we are all going to be talking to the computer in the coming years through the alexa api. And you are not worried about the data that alexa is collecting on you unwitting ly n this device. Privacy is an illusion, and the nsa is listening to whatever conversation they wont to through the phone, and so the idea that we have any privacy is laughable. It is disturb iing to have the microphone to hear in an omni directional way, and it does have a button to turn it off, but we have a track device, and will listening device in our ears. So again, your privacy an illusion. Yes, the upfront yesterday with nbcu included the ads chief and alexa with a seat in the audience back and forth about the future. Yes, it is an open platform, and so you can do ta, and when you have thousands of startups, and specifically looking for the startups, the startups on thele alexa platform are going to be amazing to take every vertical in our life, and the uberfication to not even have to take a keyboard out, but to do tasks and alexa, get me an uber, and alexa, find me a sushi table for four. It happens. Saves you 25 seconds or 2 minutes every time you do a taskk and that is going to be adding up very quickly, and that is going to be appealing to consumers, because any time you can do anything 5 to 10 seconds fastern, you will have a great uptick. This is product is so addicting. The 5yearolds, and 10yearolds love to ask it questions. It is a major role for kids. And my kids, too, since they wont be in front of youtube, either. And you scored these seats at the game against the warriors, and how did you do it . I have a couple of owners wo are with the tee, and i actually went with my friend david lee who was on the warriors last year, and i would have rather sat at the last row, but i am predict it now, warrior hs in five, and a clean sweep from now on, and the warriors will will be taking Oklahoma City team down. And you need to clean that jersey. Oh, yes. And now, good to see you, jason cal kcalikanis. Thank you. The dow is off tof the wors sessions of the morning, but it is off 56 point, and home depot is the biggest laggard despite that the Company Raised the forecast for thor e yooshgs and the inflation is up the most in three years, and surprise jump in the housing starts, but despite that, we are negative across the board. And lending club is now being investigated by the department of justice, and adding insult to injure i, the ceo resigned last week. That stock is down 80 in the last year. Pandora is rallying after korvex pressured the company to sell some of thes assets. They have a 9. 0 stake in the stock, and this morning, it is up 8 . Coming up, the first e commercial free 3d pinter. And also, is video a big bet on video . Mashable ises mashables is look g f looking for a big share. And we will have more squawk alley in a moment. The intelligent, allnew audi a4 is here. Aint got time to make no apologies. Puwith meta appetite control. You and temptation clinically proven to help reduce hunger between meals. New, from metamucil, the 1 doctor recommended brand. What i do is metaphorically i look at my closet and say, what is not here . Then i go to the shop and make it. I have found a voice. My e goal is to ell hp everybody find theirs, and i challenge everybody to put yourself in other proverbial welcome back. Hp ip 00 is unveiling the first commercialready 3d printer oday. Joining us is the ceo of hp ink, and don, thank you for coming on. It is great to be here. Thank you for having me. And we have been anticipating this for at least 19 months, and you have been talking about 3d printing for a while, and now we see the system s and you say it is 10times faster than most of the options readily available to people and companies out there, and half as expensive at 130,000 and starting the market this year, and you are announcing that nike and bmw are the initial partners who are going to be trying it out, but how is the Business Model going to be working longer term . Local 3d printing shops, and enough consistent demand to create an ecosystem here for the 3d printing system . How do you expect this to begin . Well, swwe have a chance to change printing which has not changed since thes a is sem bli line 100 yearsing a, and it allows the organizations to bring their the products so much closer to the customer. And what we are doing here is the first short run production systems, and ten times the efficiency of the kcompetition, and half the cost. And any scale scale of the ink jet business which is a popular profit for you, is this going to be trickling down to create a Business Model for hp, and how long before we see it happen . Well, of course, the ink jet print ever, and the home pri printers have changed the way you work at home, and today it is a 500 billion industry, but it is going to tap into the 12 trillion. When you problems of speed, quality, and cost with the breakthrough costs, it makes a case that is much better than traditional manufacturing. The cost for the original hp product is 138,000 which is at the low end, and there are others like carbon 3d offering the liquid 3d printerer for the 40,000 sweet spot, so what is hp targeting . Well, two products that we announced. The first is rapid prototyping, and many of the come petko comp have that, and the second line is not only about the cost of the machine, but the cost per part, and because we can print parts 10 times faster, and 21 microns of accuracy, which is 10 times the size of a human hair, and half of the cost, is it is going to be breakthroughs for the short production runs. Talk to me about the so software. When we think of printers, and what really got the desktop publishing going s the word processing software, and the photoshop, and things for people to express their kree creativitd digital cameras, and scanners, and things that translated the world into the technology, and we dont have that many 3d printing tools, and how long before the tools are relevant in the hands of everyday people . We are working with a great ecosystem of patter ins, a thapd i have been working on the 3d printing for a long time. We have been working with siemens and others who are so wildly known as well. And it is a open platform that we have created and you can make parts yourselves. Our printer prints the parts itself, and this is one of the parts at the jet fusion printers and 70 of the parts inside of the printer are printed by the multi jet fusion printers, and this is how the entire ecosystem works for breakthrough economics. This would be much more expensive by traditional ways. And the technology is going to continue to e evolve, and what are you trouble shooting, and what needs to continue from here . Well, we have a road map that is going to, tend to five year, and the key difference of our technology, and the competitors is the mighty voxall, and that is the smallest printing box of the 3d, and much like the pixel to the screen. And so we have 300 million voxle s per unit. So am image the parts that are going to be embedded, and parts with any color, and translucency to bend and shape, and that is in the road map, and with reworking on those things within the hp format. And if you can come up with a printer that can fix its own paper jam, i might pay the 130,000 just for that. Dion, thank you, hp big day announcing the 3d commercial printing. Thank you thank you for having me. A ton of stars at the webby awards. We will speak with lee na dunle ham when we come back. The 20th annual webby awards were last night celebrating everything great online and last nights theme is the internet cannot be stopped. It started leena dunham, and she won for the lenny letter featurings says from powerful women include iing hillary clin and michelle obama, and this is what they had to say about their new partnership with hearst. It is a specific brand, and we were so excited to partner with them, because they would let us do us, and we have. We ahave not been limited in ho we want to talk about politically, emotionally or any other way. Yes, they are conscious of the choices that we want to make, and real generoje genero t partners. And michaelle moore won for making a murderer. This is what he had to say about the battle between amazon and netflix. Well sh, google is new, but netflix is a force for good. What they are doing with the theatrical along with the netflix is the way to gox and for nonfiction, it is a tremendous force for good. A tremendous force for good, said by michael moore, and one of the most interesting parts of last night, kara swisher p presenting the first ever break the image award is Kim Kardashian who breaks the internet on more than one occasion. We wont forget that image. And now, they are going to be repositioning with netflix, and narcos and the lines are getting blurry all of the time. Yes, and the consistent problem is to get paid. Netflix is playing month to month, and youtube is doing that with red, and so that sis a tred we will see. It is gaining the reputation of second life for content that appeared in the theaters and them on television. So now, a second life. And now, talking about mashables, that is making it big in videos. We will be joined by the ceo of mashable mashables after the break. Im Sharon Epperson and this is the cnbc update at this hour. North korea is naming a career diplomat as the foreign minis r minister. He represented the north korea talks in the nuclear program. And some analysts say that his appointment could be a bid to improve ties with the outside world. And Army SergeantBowe Bergdahl arriving at the preliminary hearing at fort bragg, he is charged with desertion before the enemy, and he was captured by the taliban before walking away from his post in 2009. He was released in a prisoner explain five years later. A federal Appeals Court is going to release the list of the unindictmented coconspirators of the 2005 new jersey lane closure. They are determining whether to rele release the list. And a Washington Monument is back up, and it had been closed because of a faulty elevator. The monument has been shutdown for several months. It is said to be a computer chip issue. For now, back to the quall on the alley. And europe is going to be closing with mixed results. Yes, we have moved farther to the downside. Automotives have played a role in that, and now a countdown to the brexit, and ak canrding to the poll a 15 lead on the Stay Campaign which is gooder for sterling, and we had some weak reports coming out of the uk can but the sterling is stable. And also, David Cameron said that the brexit would influence the working market. And now, there is uk equities that would be at risk, because 71 believe it would remain, but it is a tail risk. And reuters are carrying a story that the u. S. Banks would be up updating their books to make sure they are prepared. You can see that some of the Home Builders have been very good, and one in particular taylor womenpey is up. And you can see the italian banks have fallen in the session, and just by coincide e coincidence, i dont believe it is why rbs has issued a ep skeptical note on the bailoff fund. And u. P. S. Is update on the greek banks believing that alpha bank in athens is a buy. You may see that the wall street journal is going to be pushing for the holiday on the greeblgs on all payments on the death until 2014 which is way out. They will vote on the tax and provisions sunday night and then into the meeting a week from today where the rest of the eurozone will give them the cash they need to pay the bills, and then ultimately if they hit the targets reopen the debt negotiation banks, and the greek banks are high, but from a very, very low base. Thank you, simon. The Television Expo is in boston and this year, some unpekted players getting into game, including mashable. Julia bor stin orstin is there pete, the founder and ceo of mashables. It is interesting, pete, that you are not just making a push into digital, but with the traditional tv with turner . Yes, we announced the patter inship with turner, and it is that mashable produces the production differently with the velocity, and we can produce to what is going to go viral, and direct it afterwards. And we are all leaning to the o. T. T. Thing, and mashable has content to be distributed more effect efficiently, and so we are looking to use it in new channels. You are saying that the sky high pushed mashable are from being in the red to the up, and are you shurna the videos will pay off . Well, i cant control on the specific, but the last couple of years, Media Companies like ours said it is a huge opportunity, and we will invest there, and through the velocity and the content, we have been able to drive high margin on the video production, and we are hitting every video phase, and so now it was the earlier concept initiation, and then twop that as well. Kayla . Y, when mashable refigured its editorial, and in such a changing media landscape, i wonder how you decided what mashables core competency is going to be . Le with, just like cable, we are going to be consumed not just on mashable. Com, but eve everywhere. And so we said, what do we want the core to be . You can have a watermark to consume it on the snap shat or facebook live. So how can we have a single you lar water mark of this is so how can you we have a single you lar wa singular watermark that is consistent as people n consuming our product in different places. Can you comment on the revenue decision to cut two dozen staff as you did towards video . Yes, program at is has little to do with it, and mashableb is not heavily invested in the programmatic, and our fastest is the content through the past year, and investing in the mashable studios which is high margin video with brands, and wells fargo, and the ability to defer to others. So we have not been concerned with that. And now, you have mashable embraces traditional television, and vice working on thele the vision with their own cable channel, and what is this going to to be saying about the business that you started on . Is a advertising online not as strong as you thought that it was . Well, i dont think so. We have grown a huge business that started in my bedroom in scotland, and the huge opportunity is that people are consuming the video on the phone, and because we are a digital publisher, we can distribute it more efficient, and be more thoughtful of how it is done. And just like newspapers, mashable was equally as competitive. So it is to approach it as a startup than as a legacy from the topdown. Pete, it is carl, and so much emphasis on the video, and the written video, and where does it leave the podcasts and all of those things left for dead . Well, a couple of things. People focus on the new shiny thi thing, and mashable when we announced all of the stuff earlier in the year, we said that we want to be a multimedia and Platform Company so you can consume our stuff on the snap chat with little video, and you can also view on mashable as text. When one medium springs up, the others dont go away. Text is incredible for us to develo develop, and we did that with scamalot series, because it is going to let us know what is viral and working, and all of the above, and the digital Media Companies need to tell stories in a different way. We dont have a single content. They dont say what medium are we using first, but they ask what story do you want to convey. So we will do all of it. You sold a pe sen taj of the company to time warner, and the company has been up for sale before. Is there a need to be a stand alone company or more potential if you are bought by turner . Well, that is a lot of question. We are excited to be with turner, and get all of the benefits from the established tv player, and still remain independent, and investing in what we say is important, and this is a perfect deal, and main tining the independence, and the benefits of the partnership, and we share knowledge, and ideas, and producing the content together. They are anxious to see how our world works, and we want to know how their world works. We look forward to seeing how it looks. Thank you, Julia Boorstin with Pete Cashmore in washington. And now, lets talk about the biggest bond deals in history, and the biggest acquisition of emc. What are you watching, rick san tell areally . Well sh, it is just what you mentioned. It is oversubscribed by a knock oversubscribed by a factor of five. We will explain this all after the break. Coming up on the halftime report, it isron is buying the stock and he is going to buy the stock to join us exclusively. And jeff bezos will take the stage at the stockholder meeting. And the josh brown many others bu, but he is th one in our hearts. Yes, thank you, scott. See you soon. And dallas is moving closer to completing one of the largest bond deals ever, and how they plan to finance emc. The Company Launched a 20 billion with yields that are likely to attract investors. The dell deal would be second largest ahead of an hizheusera. They are planning to do it by october . Yes, and it is a foregone conclusion, and what a masterful move by michael dell. Think of the way that icon was pressuring it and it did not look like it would happen, and michael dell took this thing privat private, and towering above a lot of the other names in the large enterprise computing, and private player who does not have to show his hand, and they have gain gained in pcs and amazing. Truly amazing for dl, but if you are vm, you are still w wondering what are you doing. And now over to rick sap telly with the santelli exchange. Yes, gang, demand for the yields for something of quest n questionable, and obviously, not the highest credit quality, and you cant keep it in stock. It is the sale of the century, and we will see. Atlanta gdp updated for q 2 and 2. 5 reflecting the data point. The yield curve, and even if you are not a junkie for the markets, it is something highly discussed by many people who trade, professionals and retail alike. This is tens minus twos toward co comeping in 2007 at a price of 95 which we have violated, because it is 94 right now. A couple of things, the high watermark was around 2. 90, but what we are not seeing on the chart, and if you are going to take it back a little bit is some action like this. And in november of 2006, it was actually minus, minus about 10 or 11 basis point, and so it is going to change a little bit the dynamics, and so much more working here, and the reason that it was recessionary. Say it is the normal complexion of the yield curve and the economy started to heat up, and whatever the yield was, everything would scale up, and the yield would go up, and the curve would steepen, because long rates were jumping to the notion that things were going to get done there, and there were all ways for the curve to go, and the yields would go up, and then a certain point where the yield curve is pretty steep, and all of the sudden, things start to change, and it is going to flatten a little bit as the long end goes down, and that is driver. And the fed is in cycle, and the curve is steepen iing, and the things start to come down, the fed has to ease, so it is a race. The point is that i dont know if these signals work anymore. We never had the high yield steepen i steepening, and the only reason that we are getting the flattening is the fed, and their timing is off, and the yield curve to me means that the people are looking to the fed, because it is twoyear notes looking at that, and the longend looking at the horrible recoveries sibs the great recessi recession. Back to, you jon. Dude, you are getting a bond. Up next, the tech sector is recovering for year to date lows. Are some feeling confident now that things seem to be turn around . The ceo of junipe juniper netwo going to join us. Networking giant, juniper networks, just a few of the big name clients, a volatile market for tech so far this year, so how are they holding up under all this pressure . We have the ceo of juniper networks, the Company Hosting its 2015 investor day from the Stock Exchange today. Great to have you here with us. Good b to here. Enterprise tech has been on a roller coaster ride so far this year. Service provider, particularly difficult, some Government Spending has been tough too. How is that looking as you guys move forward from here into the second half, sir . Yeah. Last year, actually, we grew across pretty much all technology areas, which in security and enterprise and providers and other market segments. This was a slower start to the year in 2016 driven by a number of things. Enterprise was a challenge. Markets started somewhat volatile this year, affecting moods, and moods affected spend, but as we get out of the q1 and into q2 of this year, the visibility and confidence level started to improve for us so were optimistic about 2016 all up. Particular sectors driving that, geographies more than others, curious in terms of strength, where are you seeing it more granule in the spending . Cloud provider spending is one of the most important shift transitions happening in the industry in the positive direction. Everyone is moving to the cloud, whether they are cloud providers, telecodes transpompting through the cloud or hybrid cloud architectures, its a growth driver for us across the board. In particular, the megascale cloud provid providers building out the networks benefitting from that last year and this year and continue it to be a strong driver for us throughout the year. From a regional standpoint, china was to be a huge source of growth, but weve seen the country endorse their domestic Companies Like shifting business from the american counterparts, how much are you feeling that . China is a Challenging Market for us and peers in the industry. Theres geopolitical factors at play here, but that said, it is a large and growing market, and it has the most number of Internet Users worldwide, and the way to tap into that market is through Strong Partnerships, and we have those. We actually, recently, just forged a very Strong Partnership with a partner of ours, lenovo, a way to go after that market more effectively. Over the last few quarters, weve seen good sequential momentum in china as a result of some of the focus and partnerships put in place for that market. Everyone points to security in the market to get a hold on things. What happened there and whats the road map out of that . Security is top of mind for pretty much everybody. Ceos, board of directors, incredibly important part of the strategy for the company. Today, more and more Companies Want to move workloads and applications to clouds, public and private clouds. They will not do that without having full confidence and peace of mind in the security of the data of the applications, so having security as being part of the solutions we offer to the customers across all is essential, so really important part of our strategy. Is todays Silicon Valley environment sustainable, or do you think theres another leg down to go . When it comes to commercial real estate, comes to just traffic and all the things with the inflated valuations seen starting to come down . Well, im an optimistic person, and, yes, you feel the traffic jams. You sort of see the difficulty, if you will, from an affordability standpoint of being in Silicon Valley, but the talent availability, the excitement, the ecosystem is second to none, which is why we have such an important presence in Silicon Valley. Were a success story, hitting our 20 year anniversary, in fact, optimistic about the valley and what it produces in terms of technology for this industry. Well, if youre a big public company, sometimes optimism means valuations come down and make it easier for you guys to grab talent. Thank you so much for joining us here at the Stock Exchange. Appreciate it. Thank you very much. We talked about alexa, the device getting a few new features today. Talking about those in just a moment. In my 60s. Ive got a nice long life ahead. Big plans. So when i found out medicare doesnt pay all my medical expenses, i looked at my options. Then i got a Medicare Supplement insurance plan. [ male announcer ] if youre eligible for medicare, you may know it only covers about 80 of your part b medical expenses. The rest is up to you. Call now and find out about an aarp Medicare Supplement insurance plan, insured by unitedhealthcare insurance company. Like all standardized Medicare Supplement insurance plans, it helps pick up some of what medicare doesnt pay. And could save you in outofpocket medical costs. To me, relationships matter. Ive been with my doctor for 12 years. Now i know ill be able to stick with him. [ male announcer ] with these types of plans, youll be able to visit any doctor or hospital that accepts medicare patients. 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Voice features come to fire tv allowing users to prompt it with questions about local businesses, restaurants, and content. Other new features coming to the small screen include additional hk content and access to kindle ebooks. They are pushing voice integrated action since the launch of the amazon echo. Do they all dove tail at some point . A key issue is that the smart home, socalled, doesnt have a Central Control panel thus far. Ecoassumed that position. We have to see how deeply they go in building out that platform or how developers build out for it. Maybe we learn more after the meeting. No cameras at the meeting today. Mean while, dow tries to trim loss. Lets get over to scott for the half. Guys, thank you so much. Welcome to the halftime report, im scott walker. Amazons shareholder meeting, ceo, jeff besos, expected to take the stage any moment there. Josh lipton is there to start us off today, josh . Reporter scott, call it trump versus besos round two. Maybe thats what well see here in seattle. Listen, we know the real estate mogul and amazon ceo have been publicly brag