Good monday morning. Welcome to squawk alley. Im carl quintania we go to d. C. With hampton pierson. In essence, we have the Supreme Court essentially partially reviving the trump travel ban heres the key points on what the court said decided to do today. Theyve agreed to hear trump appeals on rulings blocking the travel ban, six muslim majority nations. Theyre also lifting most of the injunction that blocked it from being implemented. And theyre granting trumps emergency request allowing parts of the refugee ban to go into effect now the case will not actually get argued until this fall before the full court, a court now at full strength reading one of the more interesting excerpts from the opinions of the various justices from Justice Clarence thomas in writing a dissent saying in part, todays compromise and thats in effect what they worked out, will burden executive officials with the task of deciding on parallel contempt whether individuals from six affected nations who wish to enter the United States have sufficient connections. He also cuts to the chase the compromise will also invite a flood of litigation until this case is finally resolved on the merits back over to you when i read online what i see when it comes to what theyre going to allow and disallow in term of people being able to come into the country, if you dont have some bonniefied connection to the United States, you can be subject to the an do i understand that correctly thats a pretty good early read absolutely so when you have a dissent, hes saying its going to be too hard to figure out who fits into that category and who doesnt . Yeah. I mean, its setting up its own set of brand new problems until we really cut to the chase this fall and have a full argument on whether or not the whole ban is in fact constitutional got it. All right. Thank you. Gorsuch and thomas and aledo with this decision, saying theyll rule to uphold. In the entirety none of the slicing and dicing the conclusion is the government made a strong showing and likely to succeed on the merits that is quoting from that condition occurring opinion. So big news in scotus today. Also showing shares of facebook this morning hitting all time highs on news its in talks to produce tv quality original programming. Reportedly willing to spend up to 3 million an episode on production alone thats according to the journal. Theyre looking to launch their own original content by the end of the summer. For more on this we bring in senior facebook analyst in our own julia borsten who talked about add content. Houchl a game changer is this. Look, we already know that facebook very interested in producing original content and theyve already commissioned and are partnering with companies such as buzz feed and box and conde nast i think what is most notable about the headline out this morning is this idea that it is up to 3 million that is the cost of a show on amc or even netflix. It seems like facebook is out there really looking at the range of potential content and they really just want to get every option of content on facebook on your phone so people never have a tron go else. Where. Brian, is facebook late to this Party Silicon Valley seems to exhausted every other option before going from premium content. I mean they tried to push the live thing once it was taps playing piano and User Generated Content now theyre figuring out, no, we need professionals to do this and pay. Should they have done this a year or two snag. I think if they wanted more money, yes but you can argue that going back four years ago when they were most aggressively starting to push the idea that oh, facebook is just like a Super Bowl Ad and you can get the same audience and just as infective, that argument was always so hollow because large brands make spend money on traditional Tv Properties because they want the Brand Association of premium content facebook never had that. Now if youre facebook, why not focus on the cheap content that you already have its next to it takes up to no time in a consumer news feed and persuade advertisers to spend a lot of money on it why not give it a chance that was not an unreasonable approach now here is simple math. Over the next five years or six years, facebook and google and the restst digital advertising, 15 a year, theyll be 100 of all advertising in the United States thats not realistic, right . But after that, you get to like a 3 growth rate f they dont start investing in traditional tv like content, the growth will slow more meaningfully i think whats really interesting i dont know that they should be going to this party at all. You and i have this off camera discussion frequently like what is the latest round of dumb money in hollywood whether its a region of the world or sector of an economy that has so much money it doesnt know what to do with to me, this whiffs of just all of this cash and Silicon Valley. It doesnt know what to do with it and every single industry in history thats gone into hollywood has some synergy that they imagine whether its cocacola buying columbia pictures back in the 80s to today trying to get in on this game and very expensive price, by the way well, i think youre totally right. We have this conversation. Weve been having this conversation about dumb money in hollywood for years. And usually we refer to dumb money in hollywood is either its either a foreign entity whether its money coming from china or india or the middle east steering the oil boom exactly or even from hedge funds but i think what is different here is that money is usually going to movies. This is about television and right now were what many people are calling peak tv there is more tv produced now than ever because of the rise of amazon and hulu and netflix as the big, big buyers of Television Shows i think whats happening here is that facebook is trying to build out the portfolio. You want to make a phone call, you can do it on whats app within misefrpger. You want to communication with a company, you can do it for manager relationship with Customer Service via messenger they want to make sure everything you want to do online can you do within the ecosystem. What this is about and why i dont think its dumb money is because facebook is going after tv ad dollars. And as we heard a lot last week in kahn from the advertise serz that there are Major Concerns about brand safety and measurement. And so if you if facebook were to embrace a more traditional type of content, 30 minute tv shows, then they can reassure advertisers about grand safety the advertisers know exactly what theyre buying. And they can also use a more traditional measurement of how long people are watching so i think that this is a way for facebook to go after tv ad dollars and thats why it may not be such dumb money yeah. Brian, i wonder whether you think this brand safety narrative is a Strong Enough pushback by traditional broadcasters and if thats enough to at least help them maintain the marketors they have for now . Oh, absolutely. I concur with everything julia just said. The reality is that marketers really were oblivious to the lack of brand safety in a lot of digitsal advertising over the last several years and so, yeah, being able to say, hey, were digitsal. We get targeting we get reach, and you get content that you can feel safe having your brand around, absolutely that resonates. But i would argue that this is not about dumb money you know, facebook has a lot of smart people this is not quite the same as nonmedia players, nonadvertising Companies Jumping into the space. Lets be clear, facebook is the second biggest seller of advertising on the planet. It is a vast majority of the revenue. Theyre in the advertising business this sen tire this is entirely synergistic this is a lower piece of revenue for them. They were really smart. Cocacola was really smart in the 80s. Im not sure that, you know, the japanese goes the way facebook does. But i dont think she bought it. No. I think its going to be really interesting and people are used to watching short form content on facebook. Well have to see if people want to sit and watch a half hour show and if they can even get used to watching facebook on the tv screen the way you have the netflix app on your tv guys, thanks so much. Appreciate it. See what i started there . We got some breaking news we go to morgan back in headquarters thats right. News from arconic. It is discontinuing global sales of reynobond pe and issues that have ariz inin the Grenfell Tower tragedy. The company will continue to support the authorities as they investigate this tragedy and just for context here, this is on the heels of that deadly fire at gren fell yfell tower j coup a couple weeks ago it spread up the building because of the installation and the combustable cladding, the cladding made by arconic that was on the building due to refurbishment in the last couple of years so just a couple notes more from the company. The company pointing out its a series of kpoen thaents arconic does not sell the installation, for example. It created typically by a contractor ar a finisher fwhaut light of what happened, it has discontinued the sales of this product for highrise use that is Effective Immediately even though it is still technically permissible including in the u. S. Under certain circumstances based on local building codes take a look at shares of arco arconic, theyre down 7. 5 back to you. All right thank you. Significant cloud news out of oracle this will morning. The Company Announcing a deal with bank of america to supply cloudbased erp. That is Enterprise Research planning at financial applications to bank of Americas International general ledger and broker dealer system. I talked to oracle ceo mark herd this morning about this deal here are a couple things i think are most interesting one, bank of america announced a big erp deal with oracle rival sap nine years ago oracle was a finalist for that deal now it appears that eesoracle ha chance of getting that back. Oracle sl going to run this cloud operation on bank of americas premises using oracle hardware and people. It may not technically be hybrid cloud. It is close to that model. The reason why its not hybrid is oracle sl running this themselves on bank of americas premise. Herd telling me he expects to see more of this kind after range ment and highly regulated str St Industries like cloud. Theyre getting the updates and theres a subscription type relation swhp bank of america. Oracle uses this as a foot in the door it comes at the same time google is eliminating ads in gmail that advertise against the contentst mail y are they doing that enterprise customers are spooked by ads and consumer gmail even though google said were not reading enterprise email. A lot of businesses still didnt want to touch it they feel like going sl that company that reads your email and advertises against it. So im confused its not going to be in anybodys emails now because they con flat the two . Exactly i think this shows overall force. So i as a consumer wont see the ads anymore. You will see ads but theyre not based on the content of your email theyll be based off your searches its kind of the enterprise having to adapt to what customers want based on needs for security youre seeing that in this oracle bank of america deal on premise and also google trying to get onboard not far from the record highs set last week. Shares of avis surging this morning on the news of selfdriving deal with alphabet. Hey, guys thats right entering a partnership with Avis Budget Group the deal is limited to self trifg car pie lat program in phoenix, arizona. Af sis going avis is going to support that there is going to be cleaning, charges and waymos fleet. They can better compete in the space with the likes of ub eastern lyft remember that avis owns zip car, the rental car service that has over a mullon members. I was chatting to our own phil lebeau about the deal who raised an interesting point he thinks does more about the dire straits of the Car Rental Companies than it does did b. Waymo. Yes, theyre surging on the news this morning year to date, theyre still lower by 30 youre seeing hertz shares pop on this news as well on the prospect of more deals among rental Car Companies and Autonomous Vehicle tech companies. This is the first of its kind. Now for waymo this is just the latest partnership that recently announced it is adding hundreds of chrysler minivans to build a 600 vehicle fleet. It is also teamed up recently with Ride Hailing Service and theyre also in talks with honda about a possible deal to put its technology in test cars. Guys thank you for that. What a story on your side of the country this morning as well when we come back, the latest on the president s upcome media with indias president well talk with one of the largest Indian Airlines and hear what he hopes to come to have days talks. And martin schreli is riving in court for day one of his court date and theyll address the gap in harment laws when squawk alley continues. President trump expected to welcome the indian president to the white house today following a meeting with numerous ceos yesterday. Seema moddy at the white house theyre spending a lot of time in washington, d. C. , following the mesh tech council at the white house last week some of the biggest names in Silicon Valley met with the Prime Minister for a private meeting. I was told it went on for about an hour and a half ceo tim cook of apple, i was told, got some oneonone time with the Prime Minister. We caught up with him and he seemed to be very receptive and positive about his interaction with mody. Listen in. It was fantastic. Hes always receptive he is open and smart and receptive. Biggest Sticking Point . I dont think was a Sticking Point, per se. That was j. P. Morgans jamie diamond. Wall street is recognizing india as the next frontier in tech with 277 million internet users, 15 growth in smart phone shipments and the number one Android Market yet msh yet, many indian executives say that india is considered the other asia sirp power hiding behind the shadow of china thats why this this meeting the Prime Minister of india when he meets with President Trump will look for guidance from trump as to how he views india in his broader Foreign Policy aagenda yachlt keep in mind so far in six months of trumps presidency, india has been absent from the Foreign Policy discussion back to you. Seema, one of the great hope is mody would make the Indian Economy more market oriented, far Less Government intervention and theory was his view. How is that going . He has relaxed a lot of rules around Foreign Direct Investment into india that encouraged a more positive ecosystem for companies here in the United States that are trying to invest in india. There is a lot of work that needs to be done a lot of executives will say that corruption, bureaucracy, red tape sh those are big headwinds that make india a tough place to do business in. Yeah, all right thank you, seema and coming up, a decency pledge gaining ground in Silicon Valley after a venture capitalist steps down after a bombshell Sexual Harassment report more ahead when squawk alley returns. Minutes old. A babys skin is never more delicate. What do hospitals use to wash and protect it . Johnsons® the number 1 choices in hospitals. At where instead of payinging a befor middlemen,em. We work directly with family farms to deliver Higher Quality ingredients for less than you pay at the store. Get 30 off at blueapron. Com cook markets closing in the United Kingdom and across europe stocks beginning the week in the green led by the banks because of what happened in italy. Italian authorities said theyd be willing to spend up to 17 billionure yoez of taxpayer money as part of a deal to wind down two failing banks government is paying 5. 2 billionure yoez to take on the good assets of the two banks theyve been hurt by bad loans, insufficient capital not a lot done about it. Remember, taxpayer bailouts of banks was supposed to end after the whole ordeal in cyprus however, somehow the italian managed to circumvent those rules again. In the uk, conservatives in northern italians, Democratic Unionist Party struck a deal to back the government of Prime Minister teresa may. The agreement includes an extra with one billion pounds for Northern Ireland initiatives allows them to govern despite losing the parliamentary majority in elections earlier this month lets buy them off necessarily finishing up sharply on the third point has taken a 3. Abillion stake in the food jujt hedge fund is pushing for changes at nestle. Year to date high here gain of 17 . It is calling for the sale of the companys 23 stake in loreal theyre hitting a record high in todays trading. Lets send it over to sue herrera with the news update. Good morning, michelle. Good morning, everyone the mother of the black motorist killed by a Minnesota Police officer has reached a 3 million