And also at one market in san francisco, mike isaac. Good morning to all of you. We start of course with that apple story. U. S treasury secretary jack lew with some stuff tough talk about the 14. 5 billion dollar ruling that came yesterday. The decision creates an environment of uncertainty. Our concern with European Commission action is that it is using a state aid theory to make tax law and it is doing it in a way thats retroactive and overrides National Tax Law authority in our view and we think that it undermines the environment in europe. For International Business because it creates uncertainty. It undermines the cooperation between paul ryan the House Speaker called it awful. Are you surprised to see such tough talk about a situation determined by europe . It has far reaching implications. And european leaders on the fact that its creating an environment that is not favorable for u. S. Business and perhaps even its over the top negative. For u. S. Businesses operating in europe. They need to take a tough stand. It seems in a way like u. S. Politicians are reacting more strongly to this than other Silicon Valley companies are that for the most part are more of an apple issue. Is that the sense you get . If so, why . Apple is a figure head for the eu to go after at this point. I dont think its really spread or, i guess theyre waiting to see apple is clearly the most valuable company in the world. Theyre probably the easiest target as far as Tech Companies that practice doing this sort of tax loophole structures in ireland so its pretty easy to go after them. I still think theyre going to do more postjurorsing despite the fact that they consistently go after u. S. Businesses themselves for this hype of behavior. And going to watch and wait because apple seems to be the real strong and easy target here considering its size and value. And apple is a big company. They can handle Different Things at once. Is there a risk that apple gets focused not just on this case but they have a lot of financial complexity and they have been all about Financial Engineering on one level. Is there any longterm risk there . I dont think so. This is a multinational corporation. Everyone is working in a global siermt so they will, they will handle this with their teams of lawyers and their lob yiss and the other folks that they have on payroll. Theyll continue to execute in their core business. They do have a product event next week. Im thinking that conversation was crowded by the on going fight at that time with the fbi over the locked iphone. Now to have this come out before another product event do you think theyll be able to get the gadget Community Behind this . I do think that the gadget community is probably not as interested in the intricacies of irish tax law as some of us are. Its definitely not the nicest thing to happen pfr your new phone comes out. To put it in perspective drop in the bucket for apple as far as overall revenues go they have some 230 billion in cash in the bank right now so of course tim cook is going to come out strongly against this. Its bad precedent as far as American Business in ireland but is apple still going to sell a lot of phones in the next month . Definitely. Are they worried about that effecting sales in the near term . Probably not. Google is moving in on uberss turf. Getting ready to launch a Ride Sharing Service next month to help join car pools using its ways app. The first question that came to my mind is lyft is struggling to compete against uber is there room for another ride sharing competitor in this space . Google is going to take a fundamentally different approach. What i think is interesting about google taking this on is that given incredible investments they made they have an incredible amount of data to do this in a way thats different. Perhaps even bypassing the human driver element which of course is no small thing to manage. I think youll see them laep frog and go directly to autonomous when that is possible. One of is interesting things to me is that the way its set up up to this point, the driver is just charging for gas using existing insurance because theyre not making a lot of money and its been in the peninsula la area but theyre extending it to san francisco. In a way this the is a threat to uber and lyfts Business Models because theyre not trying to make money at it but does it help people get more comfortable with using these services instead of their cars. Could this turn out to be good for the ubers and the lyfts of the world. If you need to get somewhere else and you dont have your car, how are you going to get there . Thats a good point. Wary on what google or the level of googles actual success here. Theyre really towing the waters as you said. Its not a direct threat to what theyre doing because its essentially a Car Pooling Service. Hopping in someones car in a direction theyre already going. Its more like sophisticated hitchhiking. Thats exactly right. Theres a few programs like that that have a casual Car Pooling Service that a lot of people do. Theyre aggressive on how they expand into markets and this is google backing into this market that they dont have a whole lot of experience in and im not exactly worried for uber in the near term. Maybe in the longterm. A really good point though is when autonomous comes in is when things start to get interesting. Immediately though do you think there will be any changes to the uber User Experience . Because we have seen a clear conflict of interest stepping off the uber board announced yesterday. They use google maps. Is that going to change . Uber is making Big Investments across the board. You can see that. It would not surprise me if theyre making investments to get off of google maps. And google has a tremendous asset there but more in the medium to longterm there. I think i will really quickly add maps are actually probably one of the fewer reported on things. Probably one of the most valuable assets that some of the companies have, especially google. Uber was thinking of buying nokia here which is this big mapping thing once owned by nokia but watch the mapping stuff in the next few years. That would have been a multibillion dollar deal if they had done it. But shares are underpressure this morning some reports suggested the phones battery can overheat and explode. No company likes to delay shipments but is there something bigger we should be focussing on here . Maybe battery proof pants at some point. This is clearly terrible timing for them right before the apple event approximate youre thinking about what next phone youre going to buy, this is just bad but samsung has been sort of in i wouldnt say dyer straights but struggling over the past few years to just prove that they can do more. They were, you know, one of the early quest successes in the android eco system as far as smartphone makers but this is just terrible for them right . So you have to think about what that means in the connection of new iphones and what its going to look like. Well see. Thank you to both of you for joining us today. Thanks for having us. Well its the final trading day of the month. The s p 500 and the dow negative for the month. It couldnt be more still. The volumes have been anemic all summer. Were seeing if its a catalyst. And then perhaps what is going to happen with the fed later on with a possible Interest Rate hike or maybe not. Now lets take you through how things are shaping up as we close the books in the month of august because we have some notable moves here and you can see the dow jones and s p just barely to the down side. The nasdaq up by almost 1 . If you look one layer below that into some of the big sectors on the move we are seeing action on the more cyclical side of things. The bank stocks, technology stocks, energy stocks, three of the bigger gainers overall as we head into the last day of august here. Telecoms and utilities. The biggest rise for almost a year in this month and that rise has taken a hit on some of the Interest Rate sensitive sectors. If you look at individual stocks and also Micron Technology is taking big hits and on the pharma side of things. Always a volatile stock in this vier vierlt. Look at these names. First solar. Diamond offshore. So its stocks for many peel out there. Net, net the markets havent moved much but as for guys ill end with this, what is going to happen in september. Nobody really knows but if history is any guide we asked our data partners to take a look at whats happened since 2010. The post financial crisis era and as you can see the s p, nasdaq and dow all up 50 of the time and the gains are there but theyre very marginal so if youre waiting for a pig catalyst it could be the jobs number coming up on friday. It could be a possible fed rate increase but over the course of the post financial crisis error we have not seen that much action on average guys over the course of that time. Back over to you. The seasonal factors start to turn a little bit negative but then again you see the studies where you had such a calm month like we had in august it is to the upside. It is raising Additional Capital in the 2016 calendar year through equity or debt offerings. According to the filings this morning the funds will be used primarily for the production of teslas new model 3 and equipment in nevada. Tesla raised 1. 5 billion in may to help fund production of the model 3. Shares of tesla slipping marginally in trading but it will be interesting to see howell another stock sale in this calendar year will go given 18 of the shares are being sold short. The stock backed off from that 220 range where it had been for sometime despite a lot of it really. Everyone knew that eventually tesla was going to continue to have to raise capital. Maybe its sooner than people were anticipating. I dont know if they feel that the window is there for them and theyre going to go through. Theyre preemptively managing expectations for that. When squawk alley returns its the company leading the charge in health care and cloud and Cyber Security industries and squawk alley exclusive up next. Forget about being lost in space, how about investing in it . We sit down with the venture capitalist to ask how he is making money in a that final frontier and later why walt thinks its too soon to compare the legacies of steve jobs and tim cook. More squawk alley after this. Better than expected earnings. They include biogen amgen and mylan. What does the future look like for specialists like viva . The ceo of viva systems and also a veteran of sales force and people soft. Thanks for joining us. And just the documentation they need to stay in business. Whats behind the better than expected results there . If you look at the quarter, it was just a great quarter. A great quarter in so many ways. Revenue, 131 million. That was up to 34 . Operating margin 28 . We raised our guidance for the year. Well do well over half a billion this year and on top of that we launch these four new products so a lot of t you know, you look at okay whats driving that. A lot of it is the new products that we introduced over the last several years and a lot of those are vault products which is our content platform and customers are successful and buying more products. What do you expect to happen in the cat space. Because in previous areas where you live through you have seen the likes of oracle especially and others buying up companies that acted in verticals. And starting to see them eyeing those specialists like microsoft eyeing linked in in a way. Even though that is different. And this to play out and the pressure to come to bear on viva. Its a good question. Ive seen these patterns before. Ive started out my career in the mainframe die days and the early days of cloud at sales force. Com and now youre right. Were getting into this stage and theres quite a few mergers and acquisitions and things. First of all were early days for cloud. Very early days and especially industry specification clouds in very early days. People can see the growth and they can see the profit. Youre going to have these consolidations go forward but for us were building this for Life Sciences in early days and focussing on our execution. The markets will find the right level in terms of mergers and acquisitions the last few years but cloud is here to stay for the long material. How much do you feel your fortunes are influenced by up thes and do you understand of the hief sciences market . We see the biotechs in particular can be pretty volatile just in materials of how they are valued but how much are you a discretionary purpose and how much are you these days, how much are you just something that the companies are going to have to have. Yeah, vivas core system is a record for Life Sciences company and the Life Sciences industry is large. Its a 1. 6 trillion industry and its growing at 6 or so and not very cyclical because in good times or bad people need their medicine. The fortunes of an individual Pharmaceutical Company or Bio Tech Company can go up or down having to do with really can they get drugs approved, do their drugs go off patent but overall the industry is stable so thats the backdrop. But the viva solutions really core systems of record must have solutions. Absolutely not discretionary spend. Thats why we have been profitable over the last several years with profit and growth so a very stable business. Im wondering quickly if you can what pushes your customers to actually make that move to the loud versus the systems that they have been on and how dependent is that on the economic environment. And we have really never seen any influence from the macro level economy on our business. All right. Well, thank you peter. Ceo of veeva systems. Quite a pop for the stock after earnings and guidance above expectations. Thanks for having me. When we come back, he is one of Silicon Valleys most respected investors and now he is investing in space travel. Find out why, next but first check out shares of twitter. Some heavy volume this morning right out of the gate up almost 5 right now. There are many thit want in industrial strength like coffee. But theres one thing you do. You guys okay . its called predix from ge. The cloudbased Development Platform thats industrialstrength strength b. How he plans to make money in orbit and joins us now from san francisco. Hello josh. Well, mike im here at a start up called planet where he is an investor. Now as you described he is a fan of all things space related but he isnt alone they already committed 300 million. They appreciate the money making opportunity of these private companies. I think for most its the calculation that wow this is an industry thats been sheltered from competition for decades and theres money to be made in watching Satellite Networks and rox kets and spaces opened up for commercial activity now the First Investment was space x that made some news. The satellite operator ses will be the first to launch a satellite on a reusable space x rocket. It will be one of the greatest of humanity. These are greatest hits of evolution. Having a lifeboat that whatever it might be, we have it as a back up plan. Its incredible. His office is a private space museum complete with head sets worn by astronauts, slices of the moon and the second largest mars rock in private hands. For all his enthusiasm though he is also quick to mention the challenges facing start ups including a shortage of software engineers. Its all about software people. Mars needs software. We need all types. Its the tightest recruiting partially because the people that do that could join other kinds of companies. Electric Car Companies and facebook and anything. Their capacity is pretty interchangeable across industries. Still despite those challenges jurvetson is passionate about the technology that is ahead. He says were on the cusp of Space Tourism to the moon and beyond and hes excited about this company this builds these small relatively cheap satellites that circle the earth and capture images of the planet. They already committed more than 180 million to this pane. Guys back to you. That is what we call a moon shot for sure. Josh, thank you. Were just a couple of minutes away from the close in europe. Lets get to seema with that. Thats right. European markets flat on the last day of trade for the month but investors focus on the out performance in european banks they discussed a merger this month while they concluded that it wasnt a viable option it does suggest to some that european banks are evaluating options and prospects of m a partly the reason we have seen them post gains this month up about 8 in august and the rally pulling the broader stoxx 600 index into positive territory for the month. Meantime, economic at a at a points came out this morning. And 10. 1 for the fourth consecutive month. Inflation changed at 0. 2 . You have the lack of change in the economic landscape as more pressure on the European Central bank to reevaluate whether their policies are having an impact on the real economy. Its on tap next week where the impact of the brexit will be he value crew waited and speaking of, the u. K. Priel minister met with her cabinet in what is seen as the most important meeting since she was elected. There will be no second referendum on britains vote to leave the eu but that discussion will not happen this year as a plan still needed to be forl you late sod the timing of when article 50 will be triggered is still up for debate. Her comments come ahead of the g20 meeting where brexit will be one of the main topics discussed by world leaders. Thank you. When we come back, why its still too early to compare the innovation legacies of steve jobs and tim cook. And later, advisor chairman leon cooper man joins the Halftime Report at 12 00 p. M. Eastern here on cnbc. Well be right back