Good morning, welcome to squawk alley. Im john for foton. The british Prime Minister, theresa may, triggering article 50 this morning starting britains twoyear process of leaving the European Union. We will no longer be members of the single market. We are going to make sure that we can strike trade agreements with countries from outside the European Union too, because, important though our trade with the eu is and will remain, it is clear that the u. K. Needs to increase significantly its trade with the Fastest Growing export markets in the world. John, the reason i said that sort of jokingly, was willford and i were there nine months ago when this vote happened, surprised the entire world. The big question was, when was britain going to trigger article 50 starting the divorce talks. Now that we have done it, i think the question is, how messy is it going to be . This isnt the actual original one. It is a copy. This was the letter. The two big takeaways are the tone of thele letter. Also, pretty long and detailed outlining some of the key areas. The key point, two years from now, april, 2019, britain will have left the European Union. Lots of key topics that will be discussed and we have a graphic that shows some, interms of financial payments. Will the u. K. Leave and have to pay something or get some back. What kind of terms of trade for the Financial Sector will we see . Most importantly, number five, the time frame for implementation, not just april, 2019, when they leave will the new terms be set. Will they jump off a cliff or be allowed to come into place slowly over the coming years ahead . We cant help but notice the Prime Minister there mentioning the Fastest Growing export markets in the world as being the main target for trade negotiations. That doesnt sound like the united states. That sounds like asia. I think the point that the Prime Minister is trying to make that is they pull out of the European Union but want to maintain trade with the european un union and can open trade discussions with everyone. The u. S. Will be pretty high on the list. It was a big boost for the brexit camp when mr. Minan u ch and President Trump came in and said, we will do a new deal with you, certainly sgchlt will bear rid on those issues are so many pro small details. I just picked one random chart of one industry that is going to be affected and lobbying bigtime. How about the fisheries in the uk . This is a big industry. Not just in the uk but in europe. Many imports and exports go back and forth. It is a financial issue because the big Fishing Companies want there to be tarifffree trade on both sides. Also, it is an access issue. A lot of these european fisheries and fishermen, they fish in british waters. Will that no longer be the case. Are those common waters going to go back. It is just one tiny example of one industry. It is access, trade, immigration as well. Thats why it is two years, a complicated process. Interesting on the markets that the pound rallied during Prime Minister mays speech this morning coming off its lows. It is down a little bit no, 0. 2 of 1 . Apple has announced a major update to the iphone filing system. We are gearing up for a summer of Software News from apple and google leading up to the biggest iphone launch in three years. We have a managing partner with ggv and ryan white is joining us from Drexel Hamilton to talk about this. Brian, start with you. Whats the significance of this galaxy s8 launch specially given the debacle that was samsungs launch. They really have to redeem themselves. I think there will be great innovations. I think a lot of people are waiting on the iphone, the great, which comes out this fall. So despite some innovations, it is a bad year to play catchup in my view. Hanz, whats your take, specially given a global perspective . How much does samsung have to prove even if the reviews are great out of the gate. Are people going to be weary of the quality . We are at a point where smartphone has reached its saturation. It is a very mature market. Worldwide sales grew only 7 last year. Half the growth rate in 2015. It is very difficult to come up with a phone that will wow consumers greatly. There are some rumors about what they are going to do, how they will have bigger screen, bigger display but are they going to be dramatic enough for consumers to be excited. We have to ways. Honz, samsung has a Company Called viv. Is that going to be integrated into this phone or the next model . There is rumor that bixie will be in this model. This ai assistance will be quite rudimentary to start. It will be more to help the user manage the features. It is just beginning. So, brian, putting this launch today into context, it is an important year for apple as well. They are set to release their iphone 8. Hanz brings up an interesting point about the market saturation. It feels like these sexy, Big Press Conference events around smart phones are getting old. Where is the Artificial Intelligence products, where are the Driverless Cars . Why arent we there yet with apple or samsung . The market is barely growing. I any thatthink thats why appl still very interesting. They only hold 15 globally. This is not an industry where you have 60 , 70 share. When i look at apple, i think of when you are talking about. The world is becoming a computer, whether it is our televisions, watches, a company like apple can really differentiate. Samsung cannot. They rely on android, which is googles operating system. They rely that for the smartphone. Despite this massive headline issue they have, the stock price has done remarkably well. This company, two, three years ago, moved very much on the news of what its galaxy phone was doing and whether it was beating apple. It has evolved over the last year. Is it much more broad and tied to other tech factors across the world . I think samsung is expanding. There are 5 Million Units out there. They are expanding beyond film to try to add ai and so forth. I think every phone company will think about itself as an equal system. What they have done to come up with 50, 60, 70 different product that is a consumer may want to have. If all this is not seriously integrated, you will not offer a sue preer y superior consumer experience. Yet, apple is pretty much alltime highs xiaoming and s samsung could not not them off. They relied on Software Improvements to drive the market forward. White we see a super cycle despite the fact that we are not as excited about phones as we used to be five years ago. I think this is a great upgrade cycle. I dont want to call it a super cycle. I think what you will see is some of these competitors go by the wayside over the next 35 years. I do expect the chinese to knock off samsung. It probably will be wowway. I see it as a wowway apple fight, samsung and some smaller competitors. Wowway is number three . Extremely impressive. Maybe it is the one breathing down samsungs throat. When we come back, branding in the age of trump, the new flavor for ceos attempt tog gain fav favor with the white house. Rise of the machines. Taking over black rock and what it means for your money when we come back in just a couple of minutes. Minutes. You always pay your insurance on time. Tap one little bumper, and up go your rates. What good is having insurance if you get punished for using it . News flash nobodys perfect. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. And if you do have an accident, our claims centers are available to assist you 24 7. Call for a free quote today. Liberty stands with you™ Liberty Mutual insurance ford announcing a 1. 2 billion investment in three michigan plants gaining an endorsement from the president. A m jort a jurority was previou agreed upon. Could this be ford joining a chorus of ceos spinning job creation announcements to gain favor from the white house . Lets bring in former office depo ceo, steve avalon currently the president and ceo of Economic Development and our own john harwood into this conversation. Steve, clearly, this is the p. R. Strategy du jour, announce new jobs and investments whether they were previously announced or being planned to create favor with the white house. Will it work . The new president spent his entire campaign tweeting about Companies Moving out and criticizing them and praising ones that are here in the united states. He has continued that. It is no surprise that companies say, like pavlovs dog, ring the bell and im going to announce all the good things im doing. They are getting praise, recognition, p. R. Elected officials need to come together and fix the issues. There is so much discussion on health care, tax reform and regulatory reform. All the things that drive the longterm cost of companies. Thats whats going to compre eight the longterm change beyond the nice p. R. Mentions. I like to call this regift whg regifting when it comes to these jobs. How common is this in politics in general . Every politician tries to take credit for the sun coming up. Thats not new. But what is different is that we have a president who uniquely is interested in branding a lot more than the quality of the product. Companies are playing the game. He has 26 million twitter followers. They dont want to have him bring down wrath on him. If they have regulatory issues, something that flat terse the president and makes him look good, it is good for him. Everybody knows it is not real. It is kind of like the president claiming credit for having cut the cost of the f35 strike fighter. Those cost reductions were announced by the pentagon before he took office. We have a different kind of president that says a lot of things that arent accurate. It is in therefrom all along. Does everyone know that already. Have we reached that time frame where people dont believe these tweets. Do they buy in even if on occasion you can prove some facts are incorrect. There are some people na believe them. There was a poll out yesterday that showed 74 of republicans believed that the president was wiretapped by president obama. Yes, you can get people to believe that sort of thing but, remember, this is a president whose Approval Rating is now down to 36 in a recent quinn pea ac poll. 60 of the American People said they thought he was not honest. There are some but not as many as the number that have come not to believe what the administration is that i go on issues of this kind. Manufacturing is still down 5 million jobs since the late 90s. I wonder, as we get the focus on manufacturing jobs, if it is going to move the needle. These announcements, some of the policies we are putting in place and, if so, if we start to see a real return higher than we have seen in this recovery, it is a great strategy by the white house. I think it is. These are not fake news announcements. These are real Announcements Office real actions that have happened. Nobody is hiding the date of when they first started, the actions started. Look, i think all of this us great, whether it is a manufacturing job or a service job or a knowledge economy job. They are jobs. Thats what the president ran on. Thats what people elected him to do. I think celebrating. We cant do this as the literal tweet and whether donald trump created this or didnt create it. The fact of the matter us, we have driven Consumer Confidence to a 16year high. Businesses understand they are responding and thats what the voters wanted. I think this is to be celebrated. It is a good start. I take a little issue with that. If there is exuberance, optimism but it is not based on what it pierce to it pierce to be based on. He said he was going to bring jobs back. Here are the jobs. If those jobs were announced a year and a half ago, perhaps people are optimistic based on things that are incorrect. My question to you is, steve, at some point, does it become detrimental for ceos to continue playing that game . No. Its great. These are incremental jobs. Some of the actions were earlier. The total vs. Been added up but what difference does it make. People are focused on creating jobs. You havent heard announcements of jobs being moved, factories being closed. This is what the people wanted. Lets give the president some credit. He cant get all the credit. Lets give him some credit for refocusing an American Business on creating jobs here, whatever kind of jobs any are. I think thats the point. Thats to be celebrated. I agree with steve on that. Job announcements were good. Whenever they were originated, that is good. The president has talked about deregulation and tax reform. If those two things happen, those are some of the reason for business optimism. If they, in fact, produce growth, that is also good. There are things to be celebrated. The challenge, as you indicated, john, is if the claims bump up against reality, ill give you an example. I was with a lawmaker from a coal state the other day. Yesterday, we saw president obama with coal miners saying we are going to bring the coal mining jobs back. He signed the executive order that goes after the kleen power plant. This representative from a coal state said, i wish the president would stop saying coal jobs are coming back, because they are not coming back. O eventually, people are going to recognize that because of competition from gas and other factors. Thats where the rub comes. The proof will be in the jobs numbers we can continue to see. Guys, well leave it there. Good conversation. Certainly, a bull market for p. R. Agencies in dealing with this new playbook. John harwood and steve odlin. The house of representatives voting to repeal internet privacy protections approved in the final day of the obama administration. The rules which have not gone into effect would have required internet providers to get your permission before sharing your personal data for advertising purposes. In the previous, they were a symmetric obligations in terms of privacy imposed. The argument that i and my counterpart has made is that the ftc has applied a uniform set of rules to all players in the online space. So whats good for google is good for the Internet Service provide sners. We just want every company that is handling consumer data to handle it in the same way. He argues that there should be uniform standards whether it is a free service you are getting from google or yahoo or facebook or whether it is the Internet Service provider and we can work from here to figure out what those standards could be. His opponents are saying, hey, wait a minute, the isp, comcast, at t, they have way more data. I am paying them. Why should they be able to sell that . Impact for consumers. Well see. Still to come, the u. K. Triggering article 50 officially starting its exit from the e. U. Strong words from the Prime Minister, theresa may, this morning. Well go live to london when we come back in just a couple of minutes. Minutes. Uk Prime Minister, theresa may, has signed article 50. That formally triggers the process of britains departure from the eu. Our Steve Sedgwick is in london with the latest on this historic day for the u. K. Reporter absolutely. Sarah, it is nine months for that historic referendum. Nine months since june, last year, and we finally got the triggering of article 50. Lets listen in to the historic moment when theresa may told parliament, we have started the process of leaving the eu. The article 50 process is now underway and in accordance with the wishes of the british people, the United Kingdom is leaving the European Union. This is an historic moment from which there can be no turning back. It was a very conciliatory speech in many ways. She did dangle the carrot about security and mentioned it 11 times. The security concerns of europe should be taken into consideration. We have some things you want as well. Theresa may wants a trade deal. Over mav half say they would li2 billion pounds up front first. Not all bad news. Mr. Trumps confident, mr. Farage, told me today he thought the uk could get a trade deal with the u. S. By christmas if we moved ahead now. Steve sedgwick, thank you. The eu is a bigger trading partner than the u. S. It will be important. At the moment. On had historic day, for britain, we are counting you down to the clothse in a few minutes. Lets get to seema mody. The german dax hitting a multiyear high. When we first got the announcement that uk Prime Minister may had triggered the brexit process, the pound spiked for a brief period of time. As for the ftse, stocks recouping their losses gaining around 24 points. In the meantime, executives are pressuring theresa may to secure a brexit deal that wont hurt business. Ryan air, today, warrening that the uk could be left without any flights to and from europe after the brexit happens if both sides do not negotiate to prioritize aviation. Airlines in the uk need to fiblize their summer schedules by march of next year. Still to come, the quads are coming, one of the biggest Asset Managers swapping out humans for machines in a very big way. Impact on the industry and your money is next. Money is next. 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