Good morning. It is 8 00 a. M. In code conference here in rancho palos, and it is 11 00 a. M. On squawk alley are, and we are live. Good wednesday morning and we are live from the code conference, and Kayla Tausche is live at the New York Stock Exchange and here out west is with me is jon fortt and erinn lee and alex goodman. And now, the content is making headlines last night with jeff bezos, and here is what he said. I think of them as seeds being planted, and will ta turn into trees. And Amazon Studios could turn into a fourth pillar, and it is possible. What we are doing with alexa and echo and the natural language understanding evolves into an artificial agent, and by the way, i think that there are going to be a bunch of artificial agents in the world and just like apps and web sites this they are going to be specialties, and maybe not ask the same a i is going to be bet at some thing, and a certain household better at some of these, and they seem promising to me. Just a sliver of what bezos covered with Walt Mossberg. They called it an iconic appearance by bezos, and what are people saying about it today . First of all, that it was a fantastic intervush and second of all, they have never seen jeff bezos be so candid before, but it is interesting, because i found it to be a jobsian interview, because he didnt give details, and he said he would not talk about the private decisions or the amazon road map, but still giving enough information to the audience to the public to say, hey, this is what we are interested in and what we are working on. And it is close to the vest does not describe what he did last night. Very forth coming, and this is different bezos than we have seen in a long time, and there a transformation just in his attitude and the expansiveness and the sense of things. Talking to a lot of people in the audience afterwards, they said, he is very grounded and a cool guy and nice guy, and that sort of thing, and especially when you are not that much in the public eye and not doing these public interviews people dont have a sense of who you are and what you are thinking about things. Well, he was not defensive and very clear philosophically about certain thing, and how he is looking at space exploration, and the reasons why he is going into the brick and mortar retail, and about some of the thi things that as it involves press freedom with the mission of the Washington Post, and some of the executives are here, i am here to talk about this and not that, and he had all encompassing philosophy of certain things and how they are guiding him on certain projects. Yes, when he initially started to answer the question of Walt Mossberg asking about the peter theil ga theil gawker he started to quote confucius, but he came to the conclusion that you may not like what people say, but they should be allowed to say it. And so he took a stance. And he owns the Washington Post which is an important institution, and the free speech thing is pretty important. For those who missed it on twitter or elsewhere last night, this is bezos weighing in on theilgawker. And the saying that it is attributed to confucius, and who knows if it is really confucius or not, and seek revenge, and you shall dig two graves, once for yourself. As a public figure, the best defense and again, i will not try to get into any particular story, and this is not about peter or gawker or any particular thing, but the best defense to speech that you dont like about yourself as a public figure is to develop a thick skin. It is the really only effective defense, because you cant stop it. You know, you are going to be misunderstood. If you are doing anything interesting in the world, you will have critics. The absolutely cant tolerate the critics then dont do anything new or interesting. So here we are at the conference where entrepreneurs are meeting with the media, and are we going the witness some kind of showdown . Have we already witnessed it . Where are we in that narrative . Well, we have nick stanchion coming thursday and we have invited peter theil, and he put out the open debate letter saying, hey, come on and debate me. We have not heard back from p e peter theil, but there are a lot of the vcs and others in the crowd who were in attendance, and they are taking theils side or understand his point of view, come to help to us debate either on the stage or asking questions. It is an interesting moment between Silicon Valley and the media and encapsulated with gawker and theil, and it is a sentiment running through the valley for a long time for sure. And lauren, i would write it even larger. This is a moment maybe where billionaires and their freedom to do whatever they want is being questioned. We have the case in california where martins beach, and the Public Access being blocked because someones bought a piece of land that affords access, and the apple versus the fbi, and the facebook and versus the fbi, and people of power and smarts having the ability to create certain tools that might go against what publicly elected officials or the agencies think is best. To me, this is all coming down to the question of with great power comes what is it great responsibility or just absolutely. Or the ability to influence . Well, i would say that a lot of people in the argument are boiling it down to money, and how do to billionaires feel, and the vcs feel, and it is less about money than power. And power struggles are playing out on a bigger level in the country, rand encapsulated in stories like this and people say, are we going to start to lose our freedom of speech, and power in this area, and that is what it comes down to, and interestingly, anecdotally the people i have spoken to here, whose side are you on peter theil or gawkers . And it is less about money, but it is whether or not people have been targeted by gawker at any point, because there are people that i am surprised by that maybe are on the media side that say, actually i dont think that what they are doing is right either. And personal experience goes a long way on this one. And finally, the take on a i, because it is mentioned in the prior are conference, and thinking back to io, and are we going to be looking at this one, and say, this is where we got the first e real examples of how is it going to enter our lives. Yes, a i is the frontier they are all trying to own, and not simply because it is cooler gadget or aspect of the technology to whicht is going to happen, because it is the ecosystem of how it operates. Just like apple with the ecosystem of the iphone, and the a i of how it takes shape will create another ecosystem of how it takes place, and right now, amazon is the leader of that with the echo device. And to hear him say 1,000 employees four years in, and it is not a white paper. Yes, a lot of the companies are saying it is the future of the computing, and not input devices or smartphones burk it is but which tech will allow you the is out out what you need into the atmosphere, and it will, something will happen. Google is getting into this, and you know, apple has been doing this, and it is going to be interesting to see the a i play out. And not to mention today and tomorrow, and it will be interesting, and we will see you inside, thank you for joining us today. When we come back, tons of interview at code with some of the biggest names in Venture Capital bill gurley and also, the new piece in vanity fair taking a look at twitter and break it down. Nick will join us on squawk alley when we return in a moment. Great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcast business. Built for business. It is first trading day of june, and the nasdaq is aiming for the sixth positive session in a row, and the index outperforming the dow and the s p last month and after a rough start to the year, tech is in full rebound mode, and the best p performing sector in may. Joining us now here at post 9 with his own insight into the recovery, roger mcnemme. Always good to beer hee, kayla. And let us know, because it feels like we are playing catchup with the stocks that have lost so p much. Yes, and the market is playing a shift from the adoption of the smartphones to the Big Enterprises realizing that all of the customers have a smartphone, and so adaptation to the economy to the prevalence of the smartphones is very different from the Tech Companies of what we have been doing for the last ten years of when people are buying the second and the third smartphones around and the Market Outlook is not particularly exciting, but it is not as bad as people thought january 11st, so as a consequence, it makes sense that we will see recoveries when people get into the panic mode. And as we have smart phones, and we are adjusting to that, what will eventually benefit on the corporate side, it is what will be built. And think about starbucks now, because there is a app to are preorder the beverage before you get there, and there is a special line before you pick it up, and that is good. The fact that every starbucks customer has a smartphone with apple pay, and they are walking in and clicking the thing and leaving so suddenly, there is a benefit of starbucks from the efficiency point of view, and the consumer from the efficiency point of view, and that a huge deal, and you can imagine it taking place throughout the economy. It produces a Different Company than we saw over the last ten years burk it is still attractive. And starbucks has been moving in that direction for years at that point, and i look at the s p software sector, and it is fis, if i dell ti information services, and fpfizer and globa and Tech Companies that are doing the best. So where to you find who is going to be the winners . There is a perfect example now, because now that you can assume that everybody has a smartphone and they have apple pay for the google pay, and the folks doing the credit card processing loves it, because it lowers the cost, and the transaction volume, so you want to look around the economy, and recognize that starbucks was an early adopter, but almost every company has the opportunity, and everybody who deals with consumers at least has the opportunity to build products that make the transactions go smoother, and have them cost less, and in effect, cause people to have incentive to spend more money. Tech is described as getting a growth premium from investors because there is so little growth anywhere else, and it is causing a stampede in the s sector, and albeit a broad one these days, but what happens when the gdpp is going up, and the data starts to turnaround . Well, in fact, techs advantage in the growth terms on average is lower now that it has been at any time in the last five years. You will still find the best growth stories in tech in Companies Like facebook who have the very, very high multiples reflecting the scarcity out there, and at the same time, the average tech Company Looks like the s p 500, and they are struggling to put up the numbers that they did in the past, and investors are some days feeling good about, that and some days obviously more desperate. We had Mark Bennioff on to talk about the deal that he did, and we have that from him right now. The m a season right now is the most intense and exciting that i have ever seen. I have never seen more deals and things happening, and we are not wing every deal, but this is a deal that we got done. We were excited to get to demandware, and it is tough to get the deals done in the environment, because everybody is positioning for growth next year. You see, i love Marc Bennioff and one of my favorite people in Silicon Valley. You will be getting calls from people in Silicon Valley saying that ti thought that i was your favorite person . Well, take a number. And he is saying that organic growth is the growth for the company, and he is right, and this should be a strong period for m a, because they have multiples of growth rates that they are going to be having a hard time to do, and as you know, the m a does not work out for the buyer, so you will be seeing some people succeeding on the model and most people not. And he gave us a glimpse saying that we have not won every deal, but happy about this one, and sounds like a feeding frenzy. And i suspect that he is going to be happy about the ones that he didnt win, because they wont work out anyway. And moon alice playing in the area . Well, the dewey decimal has a few place, and we will be at the acoustics friday and stillwaters on monday, so come out to check it out. Have fun, and safe travels. And now, we will talk about how multimedia is making a contribution to the success. And also, according to reports, you can see that wti is move ing moving to the front line. Squawk alley continues right after this. You wont see these folks at the post office. They have businesses to run. They have passions to pursue. How do they avoid trips to the post office . Stamps. Com mail letters, ship packages, all the services of the post office right on your computer. Get a 4 week trial, plus 100 in extras including postage and a digital scale. Go to stamps. Com tv and never go to the post office again. Welcome back the squawk alley. Im phil lebeau with breaking news on toyota. Sales are down in line with e edmonds which is a decline of 9. 8 , and the decline of all of the auto sales is the dropoff of car sales and for toyota down 16 last month, and the cars are clearly out of favor with consumers in america. Back to you, carl. Thank you. And hamilton is one of the most successful plays in broadway history and making history with a record 16 tony nominations this yearb and i spoke to some of the hamilton cast on Facebook Live yesterday and i asked them how social media is helping the show. Take a listen. It is the only difference of like a rent and a hamilton. And you know, rent was hugely successful in the day, but i think that the difference between that, that that show would have looked even more like this show had they had facebook and twitter. It is so easy, and easier to start a fire all over the world. And yet another industry disrupted by technology, and in this case social. I was struck by a couple of things, a, how great the cast is, and also, facebooks commitment to make this live element of their platform a real staying power by bringing in the high profile guests like this. Carl, im curious how you found the cast, themselves, because they are doing this performance again and again and day after day to these rave reviews, and what is the state of mind about the fame and the popularity and the popularity of the craft . Well, i mean, they are obviously very young, and it is physically draining to do eight shows a day, especially with a show like this, where it is a physical show. It is hard not the let it go to your head. I can see that the star is on the cover of Rolling Stone and the admiration is nonstop and you nknow, that kayla . Yes. And i have to say that spotify, youtube and music streaming is another part of this that is fueling the fire for the either people who cant get to new york city or cant pay 1,000 per ticket to be able to live vicariously through the music and through some of the performances that you can find on youtube is a great consolation prize. Any talk, carl, of a film . Doing a movie version of this . Well, we did ask whether they were interested in the movie version, and pretty much everybody said yes. I dont think that you would say no to that for sure. Yes. The current version is so analog, and it is like you have to be there and see it when it happens or forget it. Anyway, great stuff. Yes. And so up next, according nick billton, twitter is in a constant state of chaos, and he will talk about jack dorseys return. We will have much more coming up this hour. Need to hire fast . Go to ziprecruiter. Com and post your job to over one hundred of the webs leading job boards with a single click. Then simply select the best candidates from one easy to review list. And now you can use zip recruiter for free. Go to ziprecruiter. Com. Good morning, everybody. Once again, im sue herera, and hee is the news update. The death rate has been increasing due to Drug Overdose and alzheimers. The death rate rose up from 723 in 2014, and one of the few times in the last 25 years that the rate has increased. Four people were kill and ten others were injured after a explosion at a subway site in seoul. Workers were 50 feet underground when the explosion occurred. Investigation is under way. And Prime MinisterAngela Merkel and others were on way to open up the worlds biggest tunnel. It took 17 year, and 12 billion to build. In Northern California a sinkhole opened up on a busy interstate in california. The hole was discovered by road crews in the san joaquin kocoun, and they believe it was caused by a leaking irrigation pipe. That is the cnbc news update at this hour. Back downtown to Kayla Tausche on squawk alley. A lot of focus on the pound and the brexit poll with the european stock market close. Yes, dont forget that the European Central bank is meeting in vienna for a policy statement, and the data was not good. We have confirmation on the manufacturing pmi at a rate that indicates that we are stuck in the near stagnation according to the people who compiled that at market, but as kayla points out, it is really the brexit vote on june 23rd that is again coming front and center. If you are in this country, and you are worried about the risks for june, yesterday, we had a poll that indicated that the leave campaign is ahead which reversed where we thought that we were going, but today, another poll in the times that is suggesting neck and neck, and the pound on the weekly chart continues to fall, and perhaps the shorts are coming back in. And we hav