35 Burst results for "Andrew Ross sorkin"
Fresh update on "andrew ross sorkin" discussed on Squawk Pod
"Today on our podcast building the bill with a bill the lawmakers in the room where it happens for infrastructure with a bipartisan approach house democrat josh gottheimer line-by-line making investing in the light policy than with the right dollars and republican senator rob portman before the pandemic we have rising wages. We had the lowest poverty rate in the history of the country with livengood stuff on peter thiel turning a roth. Ira into a tax free piggy-bank for billions breaking down the latest propublica report about the wealthy and their taxes with anthony scaramucci. Some people will say that. That's unfair but that is really the bedrock of the capitalist system to allow capital to form and then of course it'd be barring against your capital. That's his old as anything. At our societies and joe becky andrew on software magnet. John mcafee his dramatic story decades-long. Cnbc comes to an end was a a real piece of work. I mean he's playing us from the grave. It's thursday june twenty four twenty twenty one. Squawk pod begins right now becky by a three to one. Good morning everybody. Welcome to squawk box. Here on nbc. I'm becky quick along with joe. Kernan and andrew ross sorkin. I don't even know how to describe this news. Eccentric anti antivirus software founder. John mcafee has died of a suspected suicide in his prison cell in barcelona spain yesterday he was found. Shortly after spain's national court approved his extradition back to the united states to face criminal tax evasion charges. His lawyer said he hung himself. When he learned of the court's ruling he was accused of not filing tax returns from twenty two thousand fourteen to two thousand eighteen. That's despite receiving considerable income from promoting crypto currencies consulting work speaking engagements and selling the rights to his life story for a documentary. He was arrested last october at the airport and barcelona on the tax evasion charges.
"andrew ross sorkin" Discussed on Stay Tuned with Preet
"I mean unbelievably and profitability huge gigantic but that that required a remarkable level of patients among the investor class And there was a belief that that jeff bezos was going to get there. He was sort of given dispensation away. Frankly that most companies don't have to make these kind of long term investments to lose money for as long as he did and along the way it's worth noting that while you and i and most people think of amazon as a prime membership or something that brings you packages to your home. A huge part of the business developed in the middle of it called aws which is offensively a cloud service which is actually the most profitable part of that business in l. Helped to some degree subsidize the rest of everything else allow back to the build and grow but do people some people. I guess this is true. As i say it i realize it must be true of some folks. They look at the amazon story. And i think back well you know. I thought that lots of people thought of amazon dot com as amazon dot com as you mentioned and now when i have an investment opportunity with the specter. Something that's new and different as amazon was at the time. And it's not profitable and there's no near-term expectation profitability. I think to myself well. This could be the next amazon. And i could be an easy street and early retirement if i put all my money in this. How often does that happen. I mean that's the you're you're speaking. The american dream is the american dream but in many ways amazon was the shoot the moon american dream and it succeeded and the truth is that so. Many of the other companies that also had no earnings or revenue. Back then disappeared and went bankrupt and so it is very hard to really be able to choose and be able to identify accompany at that early stage as a winner the venture capital model. Is you know effectively. Most of the investments are going to fail. And you're effectively trying to you're hoping a couple of your investments are grand slam home runs Because the rest of them united me get to first base.
Did Bill Gates Seriously Short TSLA Stock
"Robbed our here and today we're going to be talking about bill gates response to on musk's claims the oregon podcast a couple of weeks. Back that get heard. That bill gates had been shorting stock. We've also got some news on the broader electric vehicle automotive market an interesting response from yvonne on an article from the washington post. And of course. We've gotta talk about tesla stock. It's about wild couple of days. We had the interview yesterday with alex rotter so we didn't get a chance to talk about it. But of course yesterday. Tuesday february twenty. Third tesla dropped to a low of six hundred nineteen dollars per share. That was down more than thirteen percent from the prior. Close then of course. We saw us swift recovery in the market. And from tesla tesla finishing down just two percent yesterday on the biggest volume day that we've seen in over a month and a half with sixty six million shares trading hands yesterday. So i talked about on monday and we briefly talked about yesterday in the interview as well. A lot of this is tied to expectation on interest rates. So yesterday fed chairman. Jerome powell made comments to congress. Indicating the current monetary policy is expected to continue for some time as economic uncertainty remains so not to get too deep into that. We've talked about that. Of course in the past but as far as tussles yesterday certainly was not isolated to tesla. Those sort of concerns were broadly extended to high growth. Stocks tussle obviously falls in that category. And i think the volatility there serves as a nice quarterly reminder that you have to be very very careful with stop losses on a volatile stock like tussle as for today tesla continue to rebound finishing up six point two percent to seven hundred and forty dollars two cents. That compared to the nasdaq up one percent. All right so i up today. I want to continue a conversation that we began a couple of weeks back after yvonne. Musk went on joe. Rogan's podcast for the third time and said that he had heard from people he believes would know that bill gates had shorted tesla. Yvonne brought that up in response to a question from joe rogan on the tesla semi citing that bill gates in a blog. Post a few months back had said that eighteen wheel electric semi is probably would never work so allen's claim here understand. We drawing a lot of attention not the first time something like this has happened between musk and gates last year. He did by his first electric vehicle. The porsche ticon. Which at the time. Maybe it wasn't so clear why he didn't by ordering vehicle up until that point. Well now we might have a better answer for that. But he talked about the decision in an interview with marquez brownlee and it seemed to be a relatively tepid endorsement of electric vehicles gatesville right up ranging anxiety as a problem and elon. Musk responded to that interview. Not necessarily gives purchase of tycoon but those comments in general by saying that quote my conversations with gates have been underwhelming to be honest and so that catches us up to today and then we have launched claiming that he heard gates which tesla now in the last week. We've had both cnbc and bloomberg asked gates directly about that claim. I think gates tone is important these responses so i will play the actual clip. The i wanna hear from andrew. Ross sorkin cnbc asking gates so so you're not sure tesla's stock were clear. Yeah i'm not. I don't talk about my investment. But i think he should be very proud of what he's done. Okay so technically there. He did say yeah. I'm not but it sounded like he was more starting a sentence of saying yeah. I'm not going to talk about my investments not yet. I'm not sure tesla because he interrupts himself and says i don't want to talk about my investments so to me. That's a no comment. Rather than a denial. What's interesting here is his reason saying he doesn't wanna talk about his investments but in the exact same interview. He talks about his investments multiple times. He says quote when i invested in impossible foods or beyond me or quantum scape. I was doing that just to help their own climate. Now it looks like those three will be very successful companies. And so i'll have more money to put into the tough areas a climate like cement and steel and quote. Okay so he says he doesn't want to talk about his investments but then he in response to another question talks about his investments in impossible foods beyond me quantum scape and then how does investments are doing and that i'll have more money to then go on an invest in other stuff. I mean how much more could you talk about your investments. And he uses the first person tense. You're saying i invested. He's asked about bitcoin and he says quote. I don't own bitcoin. I'm not short bitcoin. So i've taken a neutral view and quote so for bitcoin. Perfectly fine to say i'm not short bitcoin. Same question for tesla. oh. I don't want to talk about my investments that we just spent a bunch of time talking about. If you're not going to answer the question at least come up with a better non answer. That doesn't immediately contradict yourself. He has to have known that he'll be asked about that and yet seems completely content guard answer so that was last week if there was any doubt left after that because he did start off. By saying yeah. I'm not before interrupting himself as we said. Here's gates on bloomberg yesterday so we had five days to think about this answering the same question from emily. Chang yuan has in the past claimed you shorted tesla and i wonder if there's any truth to that Well you know i think. Test us on amazed seen company I wish you know own. Been more on the long side. But i it's it's great And you know i have. Lots of relatives won't tassels Helped by for them. So you know nothing. But positive thoughts about tesla role. Okay so if the answer to the cnbc question was a bit of a flood. There was a clear opportunity to just say. Hey i'm not sure. Tesla was jor tesla and again gates passes and he sure doesn't look comfortable to me answering the question. Belief is that it looks pretty clear. That bill gates was short. Tesla who knows if he's still is it'd be surprised but come on. How are you going to be all about climate change and then short the one company that's doing more than any other company on earth to combat it. If you don't think it's a good investment you think it's overvalued you can just not invest in it. No one has any problem with that but too short it push the stock price down. Make it more difficult for tesla to raise capital. That's something else entirely.
GameStop Film in Development at HBO
"Game stop is in development at hbo this show ottesen at variety a scripted game. Stop film is in development at hbo. The project hails from executive producers andrew. Ross sorkin of tbt at productions len amato of crashed and salvage and jason blum blum house television. The film is described as exploring populist uprising of social media day traders beat street at their own game turning the stock market upside down and shaking the financial world to its core. This is the latest onscreen project setup to detail. The ongoing stock market sag saga around game. Stop a feature. Documentary was announced just yesterday while earlier this week. A feature film adaptation from writer mark bull was announced with noah sentinel set to star in a major role. Mgm also recently picked up the rights to author ben metrics proposal quell the antisocial network which also dives into the wall street fiasco grant publishing plans to publish a publish. The book in the fall
"andrew ross sorkin" Discussed on Recode Media
"Slash invention and rebecca. Lets you moscow clubhouse and vlad so so as you said you interviewed the ceo of games of robinhood. Right on the day they suspended trading for game stop And he was a tough interview and he clearly was not prepared for it And basically kept saying it. Seems like you've got a liquidity crisis. And he was trying to dance around it Want to use the word. You know it's funny. I actually thought he basically said we Crisis kept saying. We don't be but every time you use the phrase no we don't have a liquidity crisis buddy if you reading between the lines. That's what he was right and you did the real time. Read between the lines of excellent journalism But it still didn't fully come out of him And again it's not your job to represent robin hood story But they clearly couldn't sort of explain themselves to in their rumours and conspiracy theories about why they actually Back trading cut to sunday night. I guess monday morning sometime in like two four in the morning elon. Musk is interviewing vlad on clubhouse. He gets him. The the ceo the ceo of robinhood as we had three billion dollars in commitments that we had to sort of scare up What what do you make of one. Elon musk interviewing People in the news on clubhouse good bad and just a new feature of the media landscape. It's interesting because there's obviously a huge audience. That trust elon. Musk and so when he asked a question where he is in interviewer they they trust him. And that's a very interesting thing. Like when john stewart started started interviewing people all of a sudden the comedian people people the comedian in ways by the way in some cases more so then the news anchor. Yes and then john. Sarah would say i'm not. I'm not a journalist. I'm just asking questions playing but he was. He was taking it very seriously did he. Did he certainly saw himself and look famously. Took jim cramer to task. After after the can collectively look jon stewart. Though took his job. I think very seriously when he meant when he asked those questions. You know ilan though. I think that was a bit of a throw. I don't want to say throwaway interview. I don't think he he had prepared or studied for was clearly. Not even a thing. It was impromptu. If you will yeah was there. And his personas one of troll righty game stock. And i'm taking my company private at four twenty ha ha ha and i named my kid a weird bunch of codes So it's not the same on the other hand plenty people take it just as seriously and they do an interesting that you could tell. I look audio. So you can't see what's going on. But you for me. Having interviewed vlad a number of times you could see his brain a ticking as he was answering the questions thinking okay. This actually a public forum and i have to be as on point as i might be on. Tv or any other medium and in fact he seemed to go back to his script relatively quickly and there was sort of has on this in the very beginning. And then it's sorta sorta came right back away. This mike is on. Yeah yeah so. What do you think i mean you. It's easy to extrapolate that the elon. Musk our every sunday or whatever it is or oh it will bring in a variety of people who are not traditional journalists but have followings That seems fine to me. I mean you'd like as much disclosure as possible but you're never gonna get everything and i think that's fine. I mean i think it directly threatens you know parts of my job parts a your job because those people are speaking there and maybe they're going to speak there instead of a code conference or deal conference or your or cnbc hundred percent. And i think we already start to see it with podcasts. Over the last couple years sort of the the celebrity vacation of the podcast interviewer Who's now jumping into the space. And by the way they're fabulous podcasts out there that are being run by people who were never a traditional journalists are traditional interviews You know so. I think it's just gonna be another feature of the market. The question is whether the public is going to want that over. The the the the traditional journalist that to me is the fundamental question and whether they will understand and by you can never say. It's a terrible thing to say. Does that the viewer. The viewer doesn't understand that's a. It sounds terribly condescending. In so many ways so apologies in advance. Because i am allowed to say it. I do think there are some viewers who don't necessarily appreciate the distinction between the kind of work that you do. And i do in the conflict of interest policies and all sorts of things that go along with how we have comported ourselves as journalists and what that means relative to hollywood star for example or. Musk can look you. Don't you don't have to couch it right. I mean we fox news is is a great example effect that tens of millions of people can can soak up lies and it's very dangerous for the country right And i'm not saying elon. Musk is the same as a fox news anchor. If you don't play if you decide that you want to play by different roles you can. What do you think concurrently. You've got this move by. Andriessen horowitz The silicon valley venture capital fund To create its own medium. they're also investors in in clubhouse also and. I don't think that's quite a coincidence. That that all happened Jessica lesson runs. The information was on the show last week. She's very upset about this right shoes set on my show and she subsequently still tweeting about it. She's she's upset. That clubhouse barred Some reporters from being in that session Partly to be devil's advocate but partly. I just am not that upset about how i think if you wanna make your own publication god bless and the market can decide if it's valuable. It probably will do well. Because you've got a lot of access and clout and again. It probably makes jessica's job and my job in your job harder but that's okay silk. I love jessica. Consider a friend. And it's not that i disagree with her. I am very cognizant of all of the challenges that something like this may very well create and. I do think that would be helpful. I doubt will happen. But maybe it will happen. Who knows maybe andrews in harwood's projects are going to have a disclaimer. at the bottom. In fact they might be required to by their lawyers in some ways to suggest. What's going on here because they take money from accredited investors in all of these other things. We'll see we'll see what kind of disclosures are honored or not You know if you close your your clubhouse room to me. I feel bad for myself but i don't think that's You know there's a lot of people don't invite me to dinner parties and I'm cool with that and made by the way it makes your job is reporter Potentially your job becomes trying to figure out what happened at the dinner party. So and that's been going on forever and by the way if if if you have a dinner party with five thousand people and kick out specific reporters the new york times. You know. it's you're right. You can do it legally it makes you look like a big baby makes makes it makes you look bad. I mean this is similar to the white house was kicking out reporters from the press briefings and obviously it was a pup pup public events everybody could see it. I don't think it a nerd to the benefit of the president case. And i don't think it will noor to the benefit of a venture capital from somebody else robberies that way what why do you think Why do you think traditional finance types. Haven't tried to do a version of that. I know at one point. Jamie diamond was looking at buying fortune. and that was more of a play thing for him. It was definitely a play thing But i am curious why no one has when you see billionaires buying by publications it's usually Sort of for the halo effect. And at least they'll say they don't wanna sheldon adelson aside. They don't want to interfere with the way the properties run white. Why hasn't someone on wall street decided you know what enough of this wall street journal new york times bullshit. I'm gonna tell you the the the story that you should here. Which is my version of truth. Well a couple of things. If you remember. Bruce wasserstein created the deal and of course. I'm so very familiar with the deal. The deal was a publication that started in the late ninety s. Maybe early all too late nineties All around dealmaking and in fact dealbook competed with it For many many years still exists. It was acquired by the street dot com. I think sounds right So people have attempted this in certain ways..
"andrew ross sorkin" Discussed on Recode Media
"A different company but shorter that this in this exists entirely separately from game. Stop maybe you're sticking it to melvin capital or some other hedge fund but everyone else on wall street is making money off this trade It seems i feel very man saying it's just seems ridiculously naive to for folks to make that argument. Look but let me. I'm not going to push back on you. But i don't i think there's there's this argument for some again i. I'm not sure. Really wear the the true shareholders investors that are involved in this what they really think i could suspect mixed group but to the extent that there is a protests. Going on here. I think what they've done is say we have manipulated this stock. It's a symbol. It's a symbol that we have been able to manipulate the stock. We have been able to play this game and we have manipulated in the same way that hedge funds in wall street and the wealthy Have been manipulating the system forever. That's the sort of meta Take if you buy it. If buy and i imagine there's some people out there that do have that. I think there's other people who actually just wanted to make a profit by the way You know mr hello kitty when he started this. It wasn't a protest. it just wasn't it. Was he actually thought there was value game. Stop would run around youtube telling everybody anybody who would listen to him that the thing had values so it's very interesting to see sort of how this played out it's also unique because then you had people Famed shortsellers backing him. And of course if famous for being shortsellers talking about berry who was obviously a major character. The big short so that there's there's also disorder also two elements of hypocrisy involved in this situation so you wrote about fairness today and you want the you laid out some proposals and said by the way. I'm not sure that. I think these are good. Proposals at pros and cons. Can you walk us through. We'll have to do all six when you pay. What do you wanna highlight. Well look i think to the extent that this is symbolic of something if it is at all if you believe that the system is being manipulated and clearly the public does and i do think that if this demonstrated anything it is that the public has a deep distrust of wall street and a deep distrust of the idea that the stock market unto itself was fair. And i would not question that. I think that is hundred percent true and we should all be trying to figure out how to make the system more fair but what is what does that even mean. What is fairness mean when it comes to wall street and investing right if i can put money in an index fund. I can pay next to nothing for doing it. And i can get you know the same returns as anybody else who puts it in. We're all treated equally there clearly. I'm not being compensated. Like a hedge fund manager. But i can put my money in and i have reasonable Standards for expedition for return expectation. That money isn't getting it stolen. What what else do we need. I think it's a little different than i think that my grandmother doesn't have the same opportunity to for example. My grandmother can't can't participate in high frequency trading she can't make the profits that can griffin can make right You know she doesn't have high speed computers attached to the exchanges within you know a mile of them. She doesn't have access to data of where she's able to see water flows in all sorts of other things. She can't afford frankly to buy satellite shots of parking lots. I think there's a lot of people who look at this and say is it really fair. Is it really possible that the guy in there you know sitting home really has the same shot now. In some ways. I think that that migrant does have that and i think interestingly one of the things that you and i do others due to the central democratizing this is trying to try to bring people real information that they can they can try to think about the stuff with so but this idea that if if you had more tools more access better computers you could do as good a job as as a pro trader. Right the the issue there is the pro-trade irs don't beat the market for the most part. The raiders make their money. 'cause your grandma or whoever gives the money to manage. They charge her for managing it but they don't do better than the market on average You know if you wanna go. If if your argument is when i go to the casino my odds are not as good as other guy. Because he's got a better shot at understand he can count cards and i can't. That's one thing. But you're going to the casino totally. I'm not. I'm not going to disagree with you. In any way shape or form in that in that regard i just think that their issues about fairness and what what it appears that these folks are trying to say and maybe i'm not getting it right but i think that they're saying we should have the same opportunity to create wealth as anybody else. In fact one of the most unique aspects of this entire situation at least for me as a journalist tonight i very curious where you land. Is you know. We often talk about investor. Protection were often cautioning The public around company dump schemes and things of this sort and in this case the phrase investor protection is almost turned on its head because these investors oftentimes are saying no no.
"andrew ross sorkin" Discussed on Recode Media
"In this video. Peter kafka that is me delighted to talk to enter a circuit. Who has many jobs helped create billions. He has a day job at the new york times. he also has a day job at cnbc. He's a very busy man delighted to take some time to talk to us about the story of the month week year. It's called game staff commander going to be very thing in a year from now. Are we going to think this was. The story of the year was the story of the moment. And as we've watched even just this today the stock falling away it has is that mean the stories over recording this tuesday afternoon. You might get it. Tuesday night wednesday morning. It's it's historian progress but it is interesting right ahead. We talked a week ago. I think this was still in like that's a really weird thing that's happening. It's kind of a sideshow but it's interesting and then by middle end of the week all sorts of people. Sober people were saying. Listen you know. I i the people at read. It have a point and whatever happens here. Things are changing fundamentally in the way we deal with finance but now game stop goes back to where it was. And it's it's falling. It's at what ninety bucks now. We're ninety bucks now so down from four sixty eight if it just turns out that this was just a weird anomalous pop than a bunch people got excited about. It was a bubble. We've seen bubbles before Maybe it's not a story after all maybe does go now. I think we're gonna see more of it. Maybe not in game stop. But i think the idea of social media enable trade where you can actually gather people and funds and money real money i think is not is not going anywhere and i think you're gonna see that play itself out in terms of how it impacts even traditional aspects of of wall street in hedge funds and even the idea of shorting and how people think about that kind of risk in everything I wanna talk more about that but first of all Let's let's let's ask you where where you think this does it does game stop. Go back to where it was a month ago. Is it back into single digits Are we done here. I'm not a stock market prognosticator at all. I you know just on a fundamental basis. Most people would suggest it's ten twenty thirty forty dollar stock. I don i don't know you can. You can take your pick somewhere in there you by the way for all you know. It could could trade premium to that for for some period of time. It's been shocking to me that actually game stop executives have not decided to issue shares amid all of this trying to actually raise cash. Why do you have that. Do you think that is an have that transformational moment that sort of that. They could try to turn themselves into net flicks from was dvd by mail into into net flicks the ecommerce giant. That is why. I don't know. I wonder ice Look my my imagination runs wild. I wonder whether lawyers saito a company like that. Look if you issue shares right now in raise raise money. You're going to be accused of market manipulation yourself. That's what i wonder an interesting that you have not seen the senior executives at least thus far sell their shares. Either and i imagine it's for the same reason. Yes that's the matt levine. The bloomberg com who've had on the show is is that the you're just inevitably going to face a lawsuit if you're selling a share in your management At at those pretty interestingly. Amc theaters did it last week. And and there was not an outcry there was not. And we'll see we'll see what happens whether those losses The the idea that this is sort of a permanent feature part of part of me has a question about that just practically right one of the reasons that that game stop and amc worked is that the street wasn't paying attention to read it for the most part. I'm sure there are people who were looking there but now the secret is out that they've we can all get together. We can all push up heavily. Shorted stock they all did that. Playbook and now everyone knows about it and wall street bats read. It had like two million people we could go. And now it's at seven million right and they can move around but the ideas you wanted a place to gather and so you can't do it secretly because then it doesn't work at the social the social social media and if now everyone is hip to this the all right. Well that's how that short-squeeze works then. We can just sorta react appropriately. And maybe they'll still be a couple of things that spike here and there but it seems a lot harder to pull this off once once the man knows about it. No i think you're right. I think there's particularly unique about even the stocks themselves. Here's how heavily shorted. There were a terms of this sort of true supply and demand imbalance that revolved around game. Stop it was very. There's very few stocks out there. That had that kind of short demand. But i do think wall street will get hip to read it. And we'll we'll be focused on that. But i also think that short shortsellers as a function of this are going to be a little bit more reticent about shorting stocks especially if you know once you get up to twenty thirty forty percent of the float. I think that people are gonna say will. Actually there is a risk of squeeze potentially and i bet you the banks may not even allow you know provide margin for that kind of thing because they'll also understand there is so things have happened here and i also think there's been a real conversation important one about making the system fairer right i do a. You had a column today in the times about that. We should talk about. We can talk about it. But i do think there are elements of this. That are moving the conversation forward as you know though. I still have real questions as to whether this was a genuine protest or whether this was a comp dump scheme masquerading as something else i mean. They're they're not mutually exclusive right. There are people there who were crusading in. There's people there they were pumping and maybe they're the same people but they're certainly people doing look in many ways it's like it's like any protests it starts with real aggrieved folks and invariably gets co opted by looters and opportunist. And i i think you can it very much the way you described you can have both in. We probably do right now This idea that that that this is a protest against. I get the idea that the wealth is not distributed. Equally and people are upset about that. It's hard to reconcile that with pushing up a stock because that's really a very specific thing it it it. It only benefits or hurts very specific people. Sometimes i hear people say well. I'm defending game. Stop this has nothing to do with game. Stop. it's totally separate from game sabah. Except for this theory you have where they could sell all their their shares. Raise a ton of money and become a different company but shorter that this in this exists entirely separately from game. Stop maybe you're sticking it to melvin capital or some other hedge fund but everyone else.
Robinhood CEO speaks out after GameStop stock chaos
"Robin hoods roller coaster ride and a new interview from the company's ceo. Trying to slow things down. The popular free brokerage app has experienced unprecedented high volume of trading as well read it reading retail traders pile into a few highly. Shorted stocks in a move organized. In part on the irreverent wall street bet sub reddit. The volume was so overwhelming and companies. You've been hearing about maybe again after a few years game stop. Amc blackberry and nokia but robin hood suspended trading in those stocks on thursday. Wow the reaction to this move was swift and surprising both congresswoman out of cossio. Cortez and senator. Ted cruz found themselves on the same side of an issue. Both tweeting that robin hoods moves were unacceptable and at the expense of the little guy investor over the hedge funds feeling the squeeze when stocks they shorted suddenly shot up a thousand percent in the legend. Robin hood stole from the rich to give to the poor so this was a confusing metaphor yesterday for everybody. Robin hood said it was a risk management decision to protect investors the markets and the firm. The company has to deposit money to a clearinghouse based on the volume of trades. And they feared they'd be unable to meet the anticipating deposit requirements now. The company's ceo joined our andrew. Ross sorkin of squawk box just earlier this week on the power of retail investors. It is a huge time for retail investors. Check your feed for that conversation and then take a listen to this one done just two days later. When the company was dealing with the anger of the robin hoodies they're typically younger users and trying to raise money through credit lines to ensure it had enough capital to resume trading on these volatile stocks. Here's andrew flat. Ten of is with us right now and we appreciate you joining us on a day where there are so many questions there are frankly as you know a lot of angry customers out there and a lot of questions about what took place in the decisions that you made to limit so many your customers ability to buy stocks like game. Stop questions about whether you have a liquidity problem. Whether you're trying to protect them from themselves whether citadel did this explain what happened today. Thank you for having me on the show again andrew. So what happened. Today was as you pointed out. We had to make a very difficult decision. It's been a it's been a challenging day. We made the decision in the morning to limit the buying of about thirteen securities on our platform so to be clear customers could still sell those securities if they had positions in them and they could also trade in the thousands of other security is on our platform so it was a difficult decision. And that's what we had to do as part of normal operations but explain. Why did you do this. What did the call you and tell you you had to do this. Was there a problem inside. The company in terms of liquidity in terms of the demand deposits. The you had to put it in front to the exchanges. What led to this sure and let me let me explain exactly how this works. First of all i want to address some of the misinformation. That's been out there. There's a lot of a. We absolutely did not do this. At the direction of a market maker or hedge fund or anyone we row to or other market participants. The reason we did it was because Robin a brokerage firm. We have lots of financial requirements including sec net capital requirements and clearinghouse deposits. So that's money that we have to deposit burying clearing-houses so some of these requirements fluctuate bid based on volatility in the markets and they can be substantial in the current environment where there's a lot of volatility and a lot of concentrated activity in In these names that have been going viral on social media so we're really in unprecedented times and in order to protect the firm in protect our customers. We had to limit by in these in these stocks in to be absolutely. It's ahead but it sounds to me though that you're suggesting that there was a liquidity problem inside the firm and my question about that then raises all sorts of new questions about whether there's a systemic issue underneath the system and underneath the company unto itself. No there was no liquidity problem and to be clear this was done preemptively so we did this. Proactively in thousands of whether securities remain tradable on the platform customers that held these positions. Were able to seldom in. We're doing what we can to allow a buying 'em to remove these restrictions in the morning but also You might have seen robin hood has been the number one app in the in the store overall so we have seen unprecedented interest due to the fact that finance has been culturally irrelevant in a way that hasn't been before and these stocks are going viral on social media. And i think it's really interesting to juxtapose against some of the other questions that we've been having a before this of course robin For everyday investors from the very beginning with stood for investors opening up access and giving them the ability to trade commission. Free in whatever they want a in. We've gotten a lot of criticism that you know. Maybe there should be more restrictions so it pains us to have had to these restrictions and we're gonna do what we can to enable trading test. How concerned should customers be though about the robustness of the system. If in fact what ultimately had to happen was you had to shut down. Access to buying these securities because of the deposit required. Well to be clear. This was the system working. We have the ability to restrict buying in symbols for a unprecedented market conditions. Such as this in to be clear we didn't shut down the system. We shut down by four of these thirteen stocks for the thirteen securities but customers that position could still sell and customers still could buy and sell the thousands of other securities on the robin hood platform. But when you look at the precipitous fall for example of game stop. Do you think that robinhood bears any responsibility for that. I can't comment on price. Action of of securities and probably would be inappropriate for me to do that in also. I should know rodman wasn't the only firm to restrain buying other. Brokerages have been restricting the buying and trading of these types of securities all week. And even today. Of course we get the lion's share of the attention since we've been the cognitive referring for retail investing in america but other other people are dealing with these challenges as well
"andrew ross sorkin" Discussed on The Bill Simmons Podcast
"She wanted to be this hard hitting safety. But you also can't do some of the stuff they could do in some of these videos. What is what is it like when you watch those videos and you see some of those hits and she data what. I grew up watching right. You know what i mean. So that's what. I tried to emulate. I tried to do those things while i was in pop warner while was in high school. Whatever the case is. I was doing those things and so when i get to the league i did have to not necessarily just mark gain but just have to make the proper techniques. I had to get better at being fundamentally sound while tackle tackle right so when i do have my mom my strikes when i do when i do wanna take those big hits. Should you say you have to just lower your center of gravity and keep your head up and you get hit him in the head but where the game is more right now. It's is really ticky tack and you know is hard man. I will say you know for for being a guy in aggressive guy always trying set the tone no matter what. It is a tough. It's tough way to play the game because majority of time as defenders were garden ourselves with regard. Were we're doing something out of the ordinary when we are tackling. We just to avoid someone's helmet made so that's up mark because you're putting yourself at risk but not only that you don't wanna get a fine or you don't wanna get tossed out the game. God forbid so. You're you're when you're out of really lose lose situation with that so you just gotta be fundamentally sound in. I think that's what i pride myself on. Man is just the fundamentals and techniques staying consistent at debt in everyday life to. That's what it's about that's was about when it comes to being great or when it comes to being success i do feel like they should review some of these hits sometimes because sometimes the defender will get call for the helmet to helmet and they show the replay and at the last second the guy the ball dips his head or goes down as the person's already launched the defender. Then it's idaho's album even saw it on the sorenson play. When he saved the touchdown against the browns and higgins fumbled the ball bounce into the end zone and then they review. And it's like. Oh my god that was helmet helmet. I'm like was it like. He's just trying to stop a touchdown. He threw his body toward the. I don't think there was any deliberate intent at all. And i don't really know the line where the lines are with some of this stuff but they trust me. I watched football eleven hours every sunday. They have a lot of trouble regulating where those lines are. I'm sure it's confusing for you. Taste is tough man in the in his frustration at times especially when it's in a big gain or crucial moment right and you you get hit with a light flag and you're just trying to make a play on the ball or whatever the case may be and then boom you to switch to whole game. The whole momentum went from the seattle seahawks two degree. bay packers. You know what i mean or web. Whoever we're playing so it's tough man. It's office elite. But as defenders we know that and we just have to adjust and get better at our game and that's what makes his this game of football debt much more special. You know what. I'm saying that her within that hurt you because one of the things that you're really great at is when you get sneaky and you come up the line all of a sudden you're chasing the quarterback especially if it's from the blind side you're going at the at the qb but there's rules with how you can even approach the qb like you can't you can't launch. If he got rid of the ball split second you have somehow hold off as you're going full speed Ye in the back of your mind. You're like i want a sack this guy but if you're plan thirty years ago your leg i'm taking this guy down. This is a free shot. Now it's a little different. So how do you handle that. Yes definitely man. I think that when. I am approaching quarterbacks or whoever i'm all about the ball i'm trying to get the ball. If anything right get the ball out. You still get the sack plus the fumble right macy. Great so no matter. He's on the ground or not is still be a set so why not get the ball. Why not get the extra sprinkle on the on ice on ice cream co automate. So that's how i look at it like go get the ball. Go get the football but you know. Obviously the rules is frustrating. But i i really feel for myself now could have played in any era and you know. I'm i'm thankful for where i am now but i would love to play back in the early two thousands of the late two thousand. Oh man that that was. That was when football was top here. Well the first year nineteen seventy five was the first year. I really got an football and watched everything the patriots were on the way up all the stuff and they had the super bowl. And it was. The raiders against the vikings is seventy five six remembered. Sammy way win over the middle and tatum demolished him and elect demolished him. But somehow same who had held on the ball and it was like the most vicious hit in the history of the super bowl and it was recently recirculating on twitter. And i was thinking like if that happened now at feel like the world would have a heart attack and like routine right though the rule back then was if the wide receiver tight end over the middle. You're going down. Don't go over the middle of this dead. That territory belongs to the safeties. And that's why. I feel like the passing has gone nuts the last fifteen years because these guys aren't afraid to go over the middle anymore. So how do you intimidate them with really not allowed to hit them that does sound to savage but you have to make them fear it a little bit right and you. You made a hell of a point man i. It's it's tough but for me. It's all about presence. Your presence alone is going to speak volumes. So whoever you're playing. They know they have to worry about. Where thirty. three's then no. They have to five thirty three every single play or he can each and he could change the game. so is is. is it hard. But it's not. You know what i mean and and you just gotta stay. You gotta stay focused on what you have to do. You can't get caught up in what that person's you know. Take it about you. Whatever the case may be you just have to make your presence because everybody's watching film. They see it on film when you may you can still make big hits to where you make somebody say. Oh i'm not going. i'm not. I'm not messing with him on me. I'm not coming across the middle but to your point it is tough. That is a big difference. Because that's why there's a lot of passing yards. That's why you see a lot of more touchdowns than than usual in automation. Because we can't really put our hands on these defenders in really make those impactful football hints like really want to but at the same time you can adjust in still make that similar impact or if not close to automate yet. Because under the old rules kelsey who jisk- especially because they spread him out and they gave him so much space over the middle row and the old rules. The the move would have been all right every time he just go. Just go day kit so afraid. Now he's not afraid and he's he's a lot of times one on one and he can make little one little spin move..
"andrew ross sorkin" Discussed on The Bill Simmons Podcast
"We figured somebody was gonna sneak into that six to eight seed range in the east. We thought it was going to be the wizards. We didn't expect it to be like the cleveland cavaliers in york knicks or some of these other teams the cleveland. Cavaliers are nine and nine the and they're pretty good. I kind of legit like i know. It could be a legit five hundred team. Especially with jared. Our that was that was a disgrace. All right so we both agree. There should trade bill. I i agree with you. It makes the most sense is the fair thing to do for him before we go to bradley beal trades. Because i have a bunch of the throw you chris ryan in attack yesterday was saying he didn't understand why beal was behaving the way he was behaving on the bench where he was basically acting like He was in a performance performance. Art project trying to see might the most bummed out in the air. And it's funny. You watch on league past. Oh cut he goes out and he's really selling how unhappy and he's got his wife on twitter doing these cryptic tweets. And does he need to calm down like about about two percent here because the answers i mean. Part of of last night was there are so few games on A lot of eyes on washington planned against the pelicans and seeing zion on bill went off twenty four points in the third quarter so that was the reason the kind of to end. But i think you know look. He's he's exhausted and he's frustrated and he said After the game that he he recognized that is probably not the best. Look he said probably i should probably take that down to notch. So yeah but you don't want me coming out and laughing and smiling. I'm not happy we're losing. I don't like losing. I'm frustrated. Okay that's all fair. We like bradley beal. He's one of one of my favorite non celtics. I like the way he handles. His business are specter. Hardy plays i felt like he added. Toned it down ten percent but whatever. I've never been in a situation like that where you know. You're just having the season. I do feel like he was at least partly responsible for the west. Portrayed i don't think they make that trade unless he signs off on it. I just don't and if anything. I had heard that he was kind of pushing for the westbrook piece feeling like it might be an upgrade potentially if they if it was the right price whatever it was clear wall was done. Watch anyway. but you know for anybody to think building sign off on that trade. When this is the guy they're trying to keep as a franchise laughable you'd think he found out in the newspapers that oh we've made this trade. We didn't tell bradley beal. There's no fucking way. He he definitely signed off that trade. So i'm sure he's kicking himself to that. He signed off right. I don't know i mean He would not have had a unique opportunity to know exactly what russell physical condition was and depending on on the message that the team kinda delivered to him he he They might not have said to her. You know might not have been like a choice like you know. Oh we should. Do you want to participate in the decision-making around keeping john versus not keeping john if they went to him and said we got. We're getting rid of john. And i think honestly the franchise reach that conclusion in the summer when he was there was video of him up in new york city in a room and there was cash and there was like you know. They're look like there was stuff going on. That was out outta protocol for sure. Right guys all hanging out and it was just sent the wrong zafira. Yeah and and. I think that's right for washington. And so they were. They had their intent up for trade partners. And i think they went to him and said you know We're going to try and bring somebody in. Are you good with russell. And why would he be good with russell. Assuming russell's healthy. I think they actually set We're going to try to bring somebody in the only guy we can get as russell shirt so take john wall that makes the offer all right so we both agree. They need to trade bradley beal. They need to do it soon. And when we come back. I'm going to give you a whole bunch of bradley beal's trades and you could tell me yesterday. This is a bradley beal trade buffet. It's all next..
GameStop Stock Soars as Reddit Investors Take On Wall Street Bets
"Stop the video game retailer. Stock has rallied over six hundred eighty percent this month and in the last couple of days the stocks volatility has pretty much everyone talking. So what's going on. First of all game stop is for the average mall going consumer dying brand a relic of simpler times when we used to have to physically go to the store and wait in line for the newest call of duty or for the latest harry potter book. So it's no surprise. That game stop has been a target for wall street shortsellers its demise has been foregone conclusion. So short and game stop. That is betting that game stop would continue to. Depreciate could have been a good bet except short-selling is risky and your losses if you lose that bad or basically limitless since there's no cap on how valuable the company has bet against could become so even riskier if stock you've shorted starts going up. You can essentially cut your losses without getting too in the weeds market mechanics here. When a lot of short seller's designed to cut their losses on a shorted stock. That's now suddenly going up it triggers. What's called a short squeeze. Demand goes up. Supply goes down. Price goes up more shortsellers. Try to cut their losses. It's a vicious cycle and one that can result in massive losses for their shortsellers and giant prophets for those who've invested in the stock on the way up which is when a popular reddit. Forum called wall street bets figured out that game stop was the most shorted stock in the us markets. It wasn't hard to convince reddit users in the forum to buy up enough stock in game. Stop to trigger that short squeeze making retail investors of bundle and sticking it to the wall street big guys in the process. This was all encouraged in many ways by high profile investors with a hefty social media presence. Jamaa only petia tweeted that he'd bet on the stock increasing himself cameron winkle voss of the winkle vi- suggested he might go along on the stock and must only tweeted that he was aware of the situation just aware of the situation in game. Stop took off again. In after hours. Trading and to wall street bets credit. The plan worked amid game. Stops rally shortsellers on wall. Street have accumulated over five billion dollars in losses year to date and that includes nine hundred million loss on monday and one point six billion lost on friday. As you're about to hear hedge fund. Melvin capital took an enormous loss on the bet so much so that rumors of bankruptcy were swirling on that wall street. Bet sub reddit. But the founder of melvin told our own andrew ross sorkin. The rumors aren't true. Here's andrew now some breaking news this morning on this game stop story. We've been reporting all morning. Having talked to gay. Plock into runs. Melvin capital gay. Plotkin saying that. Melvin capital has been out closed out its position in the stock force. That company was Firm i should say with short looks like lost a ton of money but short that company up through Before the end of the close yesterday but Gabe saying that They got out yesterday afternoon. Of course the question is what happens now. Game stop a game. Stop shares Melvin capital had to take in an additional close to three billion dollars in new capital citadel. Coming to the rescue along with point seventy two. This is a remarkable saga With game stop so many of these investors no really no longer really investing on the fundamentals of what's happening against up but more just continue to push up the stock and we've seen so many folks like you on musk. Go take to twitter about it. Chihua- polly fanning the flames. So there's a lot of fan fan. Flame fanning taking place right now big questions about regulators where they are what they should be doing a lot of criticism and critique online as saying that if you think manipulation what do you think wall street is doing everyday to us the retail investors so. There's a sort of a pop psychology dynamic at play. And i think we're all we're all learning and try and understand what it means but also what it means in the future for the ability of retail investors to get together on places like read it and other places Form an army of sorts and try to push up The stocks in in certain cases like this. So i'm at a loss for words. Joe i really am where are the regulators and is this just the beginning situation. We all do have a lot to say on this but you you obviously have a lot to san. That's interesting but obviously the plane with the calls. And you're you're seeing calls that are one hundred dollars out of the money going for nineteen dollars and things that you've got markups going from two billion to twenty five billion. Obviously everything you're saying we understand. This is this is a game obviously and these guys. When i put five dollars on a ncaa game that. I don't care that much about that's the same as jemaah putting a couple of hundred grand on some calls or lan or any of the guys were talking about this. I think it's kind of responsible. The kind of laughing about it laughing all the way to the bank. But you know there are market makers that have to take. How'd you like to be short some of these calls. Can you imagine being short some of these calls. Especially if you're not covering i mean you can lose. You can lose ten times your money. Unlike a regular investment where only lose one hundred percent. I mean this this this makes this makes bitcoin look like t-bills if you think there's speculation and crypto when you when you look at something like and now they're looking for the next mark right they'll find another game stop once they're done with game stop but in the meantime there's gonna be blood all over understand why i understand why elon musk is doing it. He hates the shorts. They've you know he's right. Thinks it's a game where he's playing a game to understand he's playing the game too. I don't understand why tomatoes doing this. I don't understand why the winkle loss guys doing this. I mean this is i. It's nothing about me. Said too much money it and if you if you think people look unkindly at the wealthy at this point like wait till you see what happens with with the retail investor who gets sucked into thing and gets caught in the trap with who can't afford to lose the money like these guys are doing. I'll tell you the thing there. There really is a merry band of retail investors. Out there both already but increasingly and this is what i think even more concerning i spent a lotta time night reporting this out but also spending time on the in some of these rooms there are places people are going out into encrypted rooms onto telegram onto signal where they where they effectively are planning their next raid. Where they're trying to look to say. Okay where can we do. You know who can we take down next. In this case it was capital that they were seeking to take down. That's why i think the news today that they're out maybe potentially a turning point. I don't know. I don't. I don't know what turns this stock back into some kind of a normal
Twitter and Facebook Lock Trump’s Accounts After Violence on Capitol Hill
"At the time of this writing president trump's twitter and facebook accounts are locked quoting the new york times. Twitter said mr trump's account would remain locked for twelve hours and the band could be extended if several of his tweets that rejected the election results and appeared to incite violence. We're not deleted. Mr trump's account will be permanently suspended if he continues violating twitter's policies against violent threats and election misinformation. The company added twitter. Said the risks of keeping mr trump's commentary live on its site had become too high quote our public interest policy which has guided our enforcement action in this area for years ends where we believe. The risk of harm is higher. A spokesman said facebook later followed by barring mr trump from publishing on the social network for twenty four hours after finding that he had violated the country's rules with two posts. A facebook spokesman said instagram. The photo sharing site owned by facebook. Said it would also lock mr trump's account for twenty four hours and quote also president trump's snapchat account is suspended facebook and youtube removed that video that the president posted from the rose garden yesterday. Facebook said it risked adding violence. Youtube said it violated election rules as andrew. Ross sorkin tweeted. So trump has access to the nuclear codes but he can't tweet or post to facebook and
Unpacking Palantirs Public Debut: CEO Alex Karp
"This is squawk pod I'm CNBC producer Katie Kramer today on our podcast. unpacking Pailin, tear the high profile highly secretive software company has operated quietly for seventeen years and it's finally on the public markets. And -ticipant I I think for maybe the past ten years CEO Elon on why it it took. So long my lawyers will shoot me what I can tell you is we are very very focused on building software a longtime before other people building and how he expects to become profitable with a small, but mighty and mighty controversial of customers. Well, how can you have the Super Valuable Company? They're only a hundred and twenty-five customers to which I respond. Yeah. But one, hundred, twenty, five most. Interesting institutions in the world I would ask people who are watching this to make a list of the institutions they admire in the world, and then roughly figure out if they're using pounder that interview plus the politics behind listing journalist Joanne Lipman fits a company that is very, very closely aligned with the trump administration. There's a huge question here about what happens if trump does not win the presidency it's Thursday October first October twenty twenty the year is still twenty twenty squawk pot begins right now. Good morning and welcome the squawk box right here on CNBC. I'm Andrew Ross Sorkin along with Joe Kernan Becky off today. Today on the PODCAST volunteer goes public analytics company that is usually described as secretive debuted yesterday the direct listening selling new shares on the New York Stock Exchange covered live on CNBC how tears for trading why secretive well here is named after magical orb and Lord of the Rings. But in seventeen year history, it hadn't made much public volunteer received early funding from the venture arm of the CIA and provide software products designed to crunch numbers. One of these programs is called Gotham and it's for government clients. Who Need to organize an understand massive amounts of data. So surveillance predictive policing, possibly rooting out potential terrorism threats, Pailin tear works with US Army Navy Department of Homeland Security and it's working with health and human services to help track the spread of Corona virus case data that we just recorded. We can immediately narrow into emerging hotspot counties, notable backers of talent tear include investor, and Co founder Peter Thiel who has gotten attention for his conservative politics and support of president trump in the two thousand, sixteen campaign. Evening. I'm Peter Thiel I'm not a politician, but neither is donald trump as well as his work technology companies. He was facebook's first big investor other pollen tear backers include wall streeters like Hanlon and Stanley Druckenmiller when talent tear filed paperwork with the SEC to pursue publising listing earlier this year it's called the swan event is finally got a sense of the books turns out pollen tear had never turned a profit and. A, huge chunk of its revenue came from its three biggest clients which are anonymous in the first six months of twenty twenty. It's revenue of nearly half a billion dollars a big jump from the year before this was addressed by pollen tear CEO, Alex Carp investor roadshow, which true to carbs personality, and true to the weirdness of twenty twenty was virtual and started on cross country skis. Welcome to Powell, tears investor day. We're very proud to have you here. Carp is an Orthodox for a CEO. He has amazing curly hair. He uses the modifier super allot super cool and speaking to potential investors. He made the pitch for the importance of Pailin tears purpose. This way of looking at the world war literally savior situation and in many cases Save Your Life Allen to has moved beyond. Just government clients fifty-three percent of its customers are in the private sector big name businesses who use a software program called foundry include Airbus Merck Ferrari and United Airlines but it's work for governments here and others around the world stuck to its reputation allentown faced criticism from privacy groups and for its work with the US Customs and border. Patrol. Tracking immigrants at the border. But Carp in the company not backed off in. That s one filing the leader of this highly valuable tech uniform said, Pailin tears work is different in his view software missions to keep safe may have become controversial but companies built on advertising dollars are commonplace and carp took aim at big tech culture directly writing quote our company was founded in Silicon Valley. But we seem to share fewer and fewer of the technology sectors, values and commitments. Helen tear moved its corporate headquarters to Denver and its shares headed to Wall Street. If you think, we are going to change our internal culture drastically if you think we're going to work with regimes that are not allied with the US enter abusing human rights if you think. that. That the future is going to be a super rosie place where the past ways of supplying software are going to work because enterprises and governments do not need to be reformed you should not invest in pounder. Andrew. Ross Sorkin has interviewed Alex Carpet number of times. This conversation was reported Wednesday yesterday right after the first trade for here on the New York. Stock Exchange. We've had lots of conversations over the years. This has been probably one of the most highly anticipated offerings or listings in a very long time. Almost every year that we would talk in Davos I would invariably ask you are you going to go public? Are you gonNA list and invariably you wouldn't. So let's start with why now? Well, first of all, thank you for having me and I and I really would like to thank all the pound tyrians who stuck with us and built this company and our investors you're stuck with us and you know over the years we've been skeptical about listing and for lots of reasons, we really needed to build our products. With enough protection so that we would be ready to launch them into the public space. And we built we built out PG government and foundry product and and built a way to maintain them so that we wouldn't have to scale the number of people and. You know we've reached a base where where our company's very significant and we believe being in the public space will help us with our clients and help us grow and quite frankly I believe the people apparently who built this company over seventeen years. Deserved a access to liquidity. So we we decided this would be great time for us and so far. It's been a really interesting process and and our clients are embracing it. So it's a really good time for us and I'm very, very grateful. Outlets. The single biggest question that investors ask about this company is seventeen years in while you know may have an operating profit, the company unto itself is still not profitable. So so walk us through what the path to profitability looks like. Well, you know we build these products years before people build them, and that takes money and what you see in the cove it pandemic crisis is we had built this way of going to market with foundry, which would allow us to literally supply an enterprise with a completely new stack of products within six hours and maintain them. And what you saw when we did that is we grew the company forty, nine, percent, forty, nine percent off of a seven, forty, three base and the divergence between expenses and in growth is dramatic. And we're just going to be very very focused on on an invigorating, our software offering. But when you're growing forty-nine percent off of a seven forty base. I think that's a pretty strong indication of what the future could hold and we're super proud of that and I think you're seeing that people are taking a look at our financials and our our company is often been used viewed as complex and. Needing explanation both moral and financial but it turns out our financials are quite simple and you look at this dramatic growth with flat lining expenses and I think that gives investors comfort and it certainly makes me feel as. Co Founder and CEO that we made the right decision to invest heavily over well over a decade in building software, the way other people don't to build it and you see the results do you think the profitability is at twenty twenty, two, proposition twenty, twenty, three proposition can I put you on that? Well, you you can push me but of course, my lawyers will shoot me I can tell you what I can tell you is we are very very focused on building software a time before other people building, supplying it and I think that are year I. First Half of the year growth will be reflective of the future and if I'm right. That will answer all of your interesting questions and we'll be interviewing. You'll be interviewing me again maybe not a Davos but virtually, and we'll see how we do. Confident confident we'll do well. Alex, one of the other questions people ask is how to comp your company meaning what are the comparable should this be considered a technology company as SAS company or should this could be considered a much more traditional consulting company? Can you speak to that? Well I think what the investors are seeing is they're asking the question at this point they used to ask is this is this a company that built software for the government and how do they build it? Of course we always sold this as a license. Then they saw our margins of the first half of the year round eighty percent. So I think the real debate now is. Move significantly away from is this software services because although people think we're very smart, we're not smart enough to get eighty percent margins off of a services company. The question then is, how do you comp it and honestly I think that's something investors will have to figure out. We're not focused on that we're focused on we are going to be the most important software company in the world. And people will figure out what valued over a long period of time and we're very comfortable with investors toying around it could be like this. It could be like that. We are going to deliver the best software. With the morals most efficient way of delivering it investors will decide what's that. What's that were is worth to them and I think you'll find a number of years that will be a consensus. Palette. Here is a truly special software company that is arguably the most important software company in the world. Alex has everybody knows You have contracts with various government agencies, obviously and some of the bluest of the blue chip companies in America today, but it's a concentrated list of about one hundred and twenty-five companies. About Twenty eight percent of the revenue actually comes from three of those clients unto themselves. Two thirds of the revenue comes from the top twenty. How much of a risk does that pose on one side but also when you think about the opportunity on the other, if we're having a conversation like this in in twelve or twenty, four months, how much do you want that list to increase in size or do you just want to keep that group effectively and a effectively raise the margin or cost for those clients? And grow that business. Well, we want to do all the we're going to do all of the above. So interesting about our client list people people ask, well, how can you have the super? Valuable Company they're only one hundred and twenty-five customers to which I respond but one hundred and twenty-five most interesting institutions in the world. These aren't just any institutions. The literally, I would ask people who are watching this to make. A list of the institutions they admire in the world and then roughly figure out if they're using, we don't go out and advertise our product, but I would say the list of our clients is the single most impressive institutions in the world I've ever seen we. So we want to keep these clients. Also investors will of noticing in the one that well over ninety percent of our growth in the first half of the. Year came from our existing clients. What does that mean our existing clients? The most important clients in the world are really happy that's what it means. So of course, we're going to expand those really happy clients who happen to be the coolest people on the planet, and then we've built this product which has gotten very little attention called Apollo Apollo allows us to maintain and deliver software to any number of clients with essentially. Not growing our our force apparent and force at all. So we're planning now that we have Apollo to grow the number of super cool customers all over the world, and we can do it without raising our headcount, and so what you're going to see is we're going to continue building with our clients why they're the most interesting clients in the world and they clearly based on our numbers like us and some of us. We are going to expand our client base. Why? Because now with Apollo, we can deliver the whole stack in six hours. I don't think any other company I've ever seen in the world can do that, and we can do with efficiencies that I don't know any other companies going to do because we can do this with a small number of people sitting in our office that we have maintaining, updating and providing them with new products we built. So they don't have the Frankenstein monster that takes two years to build and has to be maintained with either human hours like in the government contracting case or by purchasing new product or compensating sales people or behind. It people you don't even talking to you can actually buy one stack. So we are going to increase revenue with current customers, get new customers and continue our march. Alex how easier heart is because I know you've talked about trying to keep things in in terms of the platform if you will how he's your heart it for four clients to leave in terms of the churn. Well, as I mentioned, ninety, five percent of our revenue comes from existing customers. So customers, obviously if a customer wants to leave they, can I think the main reason our customers stay besides the fact that the output is very significant as they look at this product, we supply foundry the average customers paying less than six million dollars and they compare it to buying twenty products paying ongoing licensing. Fees. You can't get out of or building something over years, and the last thing they compare it to is we're not delivering a roadmap. Most people are living roadmap of what are you going to get in a year we're delivering a product after six hours so customers can leave. But what you see in the numbers is they by and large don't, and it's not because of my charming personality. Alex well, let me ask you a different question. We've had lots of fascinating geopolitical and philosophical questions about the role of technology and Pailin tear itself as well as the approaches silicon valley has taken. I'm curious in terms of risks how you think about this Amnesty International as you know, criticized, the company recently for its role of working with ice. How much of that does that pose a risk to the larger business? Especially, the corporate business at a time when we have corporations at taking both political positions and also being oftentimes being socially at activist. To Your Business Well, look the fact that we take positions that are sometimes controversial can cost. US clients. But it also gets us. Clients because when we talked to a client and we say look we're going to work with you. We're not gonNA walk away just because the winds change and this is super important especially to our government clients if you're supplying special forces and army and the US, those clients have to know that they will not be left on the battlefield. Because a because Silicon Valley has decided they don't like the warfighter. So of course that costs revenue many of our decisions of cost US revenue we only work in certain countries we've walked away from work because if human rights issues we've said, we disagree with very prominent human rights organizations and we engage in dialogue but also by the way is a reason why I Think people who are watching this may consider investing or not investing. We are not going to stand up here and say we're for everybody we're not going to pretend, and by the way we're going to try avoid jargon. We will actually tell you what we think it's not going to be created by fifty media people it may have to be carried by a couple. Of Lawyers but one of the unique things about power tears, we actually say things and we actually stick to them and that's something not everyone likes but many of our customers do and by the way I think it is a reason why ninety five percent of our revenue comes from customers because when we tell them, we're going to deliver we are going to deliver. Alex. One of the other questions now you all republic company. But as you know, you have three tiers of stock classes of shares that is and to some degree there have been critics who said, this is effectively a private company masquerading as a public company. Can you speak to the decision to structure the shares the way that they are structured and how governance experts and folks should think about that I think it's important for government experts to look and make an deliver opinion but I would also ask them to consider the environment we live in pound tear has been in silicon valley up till recently for seventeen years and in silicon. Valley. Defending the. warfighter providing our troops with technology that allowed them to come home is very controversial. I do not believe a company like ours that makes really consequential decisions for government clients and non-government clients could be run without an F. share structure and I understand there's criticisms investors look and say, well, why should talent you're having F. structure? What is my? What is my what? What can I do if? I don't agree with them. The primary reason why we fought for an structure and we asked investors to buy into it was we need to be able to go to our especially our Intel and defense clients and say, we will not just blow with the wind. And does shares for a company like ours gives us a unique ability to have long-term commitments to the most important clients in the world, both commercial and government, and that's why I believe they're super important, and I also again would encourage people if that's not something you're comfortable with there are many shares to buy. We don't have to buy challenge your shares. You should buy shares knowing that these shares reflect our views. Alex we've often had these conversations in Davos where globalization has ruled the roost but as you know so well, the world seems to be shifting to a globalized world, a splinter net if you will. How do you think long term that will affect the business of here We made this decision, which is actually a secret only because no one believes it's true which is that we didn't solve the problem of fighting terrorism. We solve the problem of doing data protection and fighting terrorism, and the architecture we built both PG and for foundry will allow a super set to work with subsets, which means if the world's splinters and every country has its own jurisdictions, it's GonNa be very hard for normal software companies because they're not built to do that but it's going to be very good for Palette here and finally Alex. Decision five years from now today. How would you measure success? Here, what would be the metrics which measure it? We know they're there obviously financial metrics but I'll tell you Powell cheer has recruited and retained I believe the most interesting most talented most ethical people I've ever met and we work I've interacted with thousands of institutions and in five years when meet I think he'll say to me. Wow, that wasn't just you saying that because it was the right thing to say it's actually true. And the products that will build over that period we'll we'll. We'll be unique and they will tilt the course of history. In favor of things that are good and noble. And will not avoid the complexity that's necessary to do that outlets. Carpool. You lots of luck and we do look forward to having that conversation hopefully in five years. But hopefully sooner than that. Thanks so much Alex.
Palantir Plans to Go Public
"Details on one of the most anticipated public debuts of the last few years, data analytics company. Pailin. Tear. Technologies has released its prospectus to debut on the public markets in the filing pound here reveals that plans to list on the New York Stock Exchange under the ticker he l. t. are and will pursue a direct listing rather than a traditional IPO, the same unconventional route taken by slack and twenty nineteen and spotify two, thousand, eighteen the company said it lost about five hundred eighty million dollars last year despite a twenty, five percent increase in revenue from the prior year. Tear was founded in two thousand three by a group of Silicon, valley entrepreneurs, including CEO, Alex, Carp, and Peter Thiel became wealthy as a founder of pay PAL and an early investor in facebook, and just in case you didn't know I did not until today Pailin tear the company was named after a magical or in the Lord of the rings that lets you travel. Vast distances. Here's Andrew Ross Sorkin with more in the filing co Alex Carp said quote our company was founded in Silicon Valley and by the way now, it goes to take on a shot at Silicon Valley but we seem to share fewer and fewer of the technological technology sectors, values and commitments from the start. We've repeatedly turned down opportunities to sell, collect or mind data of technology companies including some of the largest in the world have built their entire businesses on doing just that. Carp recently announced plans to move its headquarters from Palo Alto to Denver in part because of. This value issues talked up how also clear on its stance on China. Says we not work with the Chinese Communist Party and had chosen not to host our platforms in. China. which may limit our growth prospects. Company proposed three classes of stock, a Class B and Class F which will be held voting trust established by its founders including Peter Thiel with just below fifty percent of the total voting power for that stock that's similar to voting structure of other tech giants, clean facebook, and Google. So if you're concerned about the power structure. That is that is something they do share in common with with the rest of the
Procter & Gamble: Let's #TalkAboutBias
"Companies combating bias many American. Corporations are taking a closer look at their impact on employees and customers when it comes to issues of diversity and inclusion one of the most visible examples, the stop hate for profit campaign, encouraging advertisers to boycott facebook amid calls for the social media giant to better moderate racist content. We've discussed this initiative at length here on squawk. SQUAWK pod check out Wednesday's episode for our most recent conversation with one of the campaign's organizers, but one of facebook's and Google's biggest advertisers has remained uninvolved in the boycott. That's proctor and gamble the consumer-goods Giant that owns household brands like Gillette. Bounty tied down vicks crest. The list goes on, but while fellow consumer giants like Pepsico Coca Cola and Unilever have pulled or paused their advertising. Advertising with facebook being Jay has not even though PNG has a history of calling out big tech platforms about this very issue in twenty nineteen, the company spoke out against digital media platforms. SUGGESTING PNG could move its aunt. Dollars to services do a better job at keeping their platforms free of offensive content, and they weren't kidding. In two thousand, seventeen and eighteen proctor and gamble had boycotted. Boycotted Youtube for over a year after its ads showed up next to terrorist content, so why his PSG remained on sidelines in this boycott, the company's strategy has instead been to double down on its own approach to combat racism with ads like the look and the talk about conversations. Black parents have with their children in this country. The talk actually won an emmy a few years ago. You were not pretty slow blood. Beautiful period. Okay. I'll never forget that. This week proctor and gamble released another short video choice encouraging white Americans to speak up and stand up against racial bias as well as the Hashtag. Let's talk about bias fostering conversation about race between strangers. Everyone has bias as might be uncomfortable. Can you imagine that officer having his knee on a white woman's neck like that for ten minutes it all starts with biased. Each video is a powerful watch. Damon Jones chief communications officer at proctor and gamble joined squawk box this morning to discuss the strategy. Here's Andrew, Ross Sorkin Damn Good morning to you. The morning before we get into some before we get into some of the details, just just tell us how this came about and I'm curious about what kind of debate there may or may not have been inside the company about how to approach this. Will for years we've been using our voice and position as a leading advertiser to spark these constructive conversation on race and unbiased. You know back in twenty fourteen. We launched a campaign called like a girl to talk about gender bias and twenty seven be launched a campaign all the talk that really shine the light on the conversations that black mothers were having with their children. Children to prepare them last year, bid on a campaign called the load, and recently with the choice we wanted to catalyze even more conversation, giving all that was happening in the world so we know that a lot of the core evil that we're facing right now. Racism sexism than up over. They all start with biased and we can't tackle these problems until we begin. Begin to talk about them, so the challenge is always. How do you do that in an accurate way? How do you do that in a way? That really brings people voices by invite them into really become part of solution. That's our objective with the talk about bias campaign. You know it's an important message, but we're. We're living in contentious time, and amid what some people. People might describe a cancel culture and I. Don't know if you remember when starbucks many years ago, put together their race together program, which immediately drew criticism despite I think it's well intentioned, and my question to you is how you think about that sort of a mix in terms of how you approach this issue, and what kind of feedback you've gotten us for. Sure well I think what we know because we're all about serving consumers, consumers want to know the values behind the brands they buy everyday and as we consider these types of programs, we do it in a fear and accurate in a respectful manner, and we're very clear on our goals, and we want a society that fosters great public discourse, even when we disagree, so we bring multiple views to the table, and we handle those using a very responsible way were clear on the objectives were clear on the outcomes, and we acknowledged that eight. Not everyone's a disagree, but we want everyone to come to the table, bringing their lived experience, but also bringing perspective that are beyond. Beyond their own, so what we did talk about bias. Perish Rangers together right. People who were different have different lived experiences, White, black gay shrink all these dimensions of diversity, and we said let's talk about these things right and sometimes disagree sometimes you'll get a little hurt, but that's the proper process of learning. We've actually taken that same process within the wall to P. and G. writes. The were walking the talk when it comes to bringing people together and getting through some of those difficult conversations at the end of the day. It's not about a popularity contest, but it's about getting to the culture of respect and understanding that we all want to live in.
"andrew ross sorkin" Discussed on Squawk Pod
"This is squawk from CNBC. Today on the POD, we're continuing our ongoing conversation about systemic racial and economic inequality in the US and particularly the role of corporate leaders to actively undo it a narrow the opportunity gap. I caught up with Andrew Ross Sorkin.
Robert Smith, Vista Equity Partners; PPP & Minority-Owned Businesses
"For businesses around the world today isn't a restart it's a rethink that's why they're partnering with. Ibm retailers are keeping their systems up as millions of orders move online. Paul centers are using IBM Watson to manage an influx of customer questions with a I and solutions built on the IBM cloud are helping doctors care for patients remotely today. We're rethinking how business moves forward. Let's put smart work visit. Ibm DOT com slash thing to learn more this squad pod? I'm CNBC producer. Katie Kramer Today on our podcast private equity giant and richest African American billionaire Robert Smith on getting loans to entrepreneurs or capital is be driven. Frankly into this small businesses hands in probably give them a little more flexibility in terms of hobbies and and how to leverage technology for digital future. But I think we should think about what are the most effective ways for us to educate our population to drive forward into you know into the teacher of opportunity plus when reopening is on the Menu Cameron Mitchell restaurants founder and CEO laid off thousands of workers. Now he's opening doors again. I think we're going to survive but it's GonNa be a while before we get the hospital. It's Monday may twenty Fifth Happy Memorial Day squad. Pat Begins Right now Robert. F Smith is the founder Chairman and CEO of Vista Equity which has fifty seven billion dollars in investment capital. Vista is the fifth largest enterprise software company in the world as well and overseas more than sixty portfolio companies that employ more than seventy thousand people around the world. Smith is also the first African American to sign the giving pledge and he was recently awarded the Carnegie Medal of Philanthropy. He's on many lists as the wealthiest black American and lately. He's been working directly with the White House on the roll out of the paycheck protection program and how to get the loans in the hands of the most in need especially minority owned business. Pp was designed to rescue mainstream. According to the small business administration more than four million loans have been approved so far totaling more than five hundred billion dollars. Here's Andrew Ross Sorkin with billionaire businessman and Philanthropist Robert F Smith. You had worked with the White House on this program and so I just ask you to start by giving it a grade. Do you believe the money's getting where it needs to go. You know be first Tron of the P P P I think was challenge to get to the the small businesses small medium businesses a second charter for being a lot more effective But one of the things we discovered. Angela's US not discussed is that there is a frankly banking desert's in a lot of the communities about seventy percent of the African American community. Actually don't have a branch bank and so we've been working with a they treasury you know senator Sector MNUCHIN and Senator Schumer in Pelosi Dachsie work on building capacity and what I saw the capillary banking systems which are the community development financial institutions and a minority depository institutions building out the Pasadena to get these dollars into the hands of these small businesses which are essential to our communities so what are those capillary banks. Look like who you to right. If you are a small business owner this morning listening to you this morning. Where did you go go? Go to get that money then. So there's a bad a little over a thousand of these days. Cdfi's and the India is and these banks typically are in the communities there mainly in what we call targeted communities Unfortunately a lot of the larger banks don't bank those organizations those businesses any longer and is about ninety four percent or so of the African American businesses are so proprietorships and don't have banking relationships. And so what we've been doing is is enabling. Technically enabling got some wonderful teams have been ebeling these businesses they interface with the transit system at the and you can go to number places. There's national bankers dot org goes National Action Network. We've been worked black churches. Our Fair share A number of organizations that we've been working with to enable these banks to be able to processed loans and we just probably about ninety billion dollars or so left in the second of AP and I think it's essential if these small urban businesses African American Latin next businesses get Get their share This stimulus capitals of really frankly Repair some of the economic damage that this covert virus
"And T. mobile the long-awaited merger of the number. Three and number four wireless providers is closer to happening nearly two years after I being announced announced a US district judge ruled in favor of the twenty six billion dollar deal rejecting an unusual suit filed in June by attorneys general from thirteen states and DC. In that suit the states argued a combined sprint T.. Mobile would reduce competition in the industry and lead to higher cell phone bills for consumers yesterday on the pod. We brought you Andrew Ross. Sorkin exclusive exclusive discussion with Marcello Flora the former sprint CEO who is now executive chairman of we work and CEO of Softbank a sprint investor. We're going to have a decision. I'm based on the merits of the merger. Nothing has changed. We believe that is the best for. US consumer central repetition. The judge's decision was announced today while Squawk box was on the air. Sending the stock price of both companies straight up. It is now official a federal judge approving
"andrew ross sorkin" Discussed on Pivot
"Arms I. Yeah I'm not I'm not actually I'm not going to agree with the with the business news argument there. Because I'll tell you what there's this crazy easy community of people who were die hard and other die and they're not diehard they're dying let him finish you know you you can make that argument agreement. I think that if you look at what seems doing for example on air and then on digital I think that there's a core look to be great continents always what having a core audience and I think genuinely genuinely core audience if you go and talk to the CEOS of the fortune five hundred even the guys in the valley and elsewhere that they may not be watching it all live but they're watching the clips. They WANNA be on it. They WanNa talk to the audience of investors. There it's part of this ecosoc can't tell you when I'm doing squawk in the morning how. How many phone calls I get or emails during the show? Live from people on the West Coast. big-name CEO's who say. I can't believe you just said that. What's going on with this and correct that that's that's the different artists it is? It is sort of the business ta I mean when you think about business. News now format everybody it is in the backdrop. It's playing everywhere. It is the question to me is a little bit more like Espn long-term from from a table perspective will people are GonNa have to create like an ESPN plus like service. Do people then pay for that. How much did they pay for that? If you believe carriage fees are GONNA come down long-term turn how does that all work itself out that to me is a real question But I think that there still is this core group that I think loves loves it and we'll pay a lot for instagram with Andy on this one. Okay Right L. Win and Phil. He's right. Innovated Scott a winning fail and this is my own personal. Everyone's is just a winning fail week. We're talking about here. Give me the hitch you when we said. NFL persons marching. I don't food people know the Real Andrew. Ross Oh my God. I don't think they know the failed. Andrew the listen to him. Well okay so the the win. I didn't interview with Marcelo. Chlorine Koray I I real TV interviews done since All the crazy commotion and he said I thought it was a win because because I thought he opened up about the religion with Adam Newman and said that they actually don't talk that much anymore even though I think it's not what Adam Newman would like him to have. Instead of Adam. Newman desperately wants to cell phone. Marcella was at the scene of the crime the whole time so he wanted sort of like girly early and asking Travis Kalanick's you know. Now we are. They were there the hundred percent but I actually thought he was humble about it in terms of saying look we totally screwed this up up. Nine mistake we work at a billion. I'm sorry I interrupted. Would you invest in an eight billion valuation. It's tough it's how they have by the away close to fifteen billion in with with debt. So that's what I said to him. I said how do you get money. How you make a good He thinks that they're going to get there. It's it's GonNa be a rough road Big Loss for me was the squawk show which I love doing makes you go to sleep so early so I didn't get to watch the astor's last night. That's a parasite you're welcome parasite. Have you seen parasite no fail morning. Go Watch roundabout equality watching anyway Andrew. Thank you so much. This was totally. You made a lot of good content. Let me in in a very short of sort of only sort insightful. Ish Robison thank you thank you. You can buy standard okay. Scott his brilliant. I'm sorry you're GONNA have to go now. It's my turn I get to Andrew. Yes going thanks for the thanks okay So my my win is a motion picture or whatever we're calling me. I thought that they pulled off one of the great brand new so I think they've they've turned the corner if you will set the parasite was such a unique opportunity. And the semi fail as continued Shit Show Ask Clown Management of the Democratic National Committee and again emerged Misra guy running the Vision Fund deserves to be fired more than anyone in the world. Right now I I loved that out of thinking about Jeanine Rometty. You know when the chairman sits down and says we're a Ramadan Says we're we're making we're going into different direction as the lead directory sits down. I wonder if she said well. You know what the dog walking APP is on. Its way I mean that guy gets to keep his job. The head of Vision Fund gets anyways that person deserves just to be fired more than anyone in the world with the exception of his name Tom Perez the DNC. And I don't know if you saw I don't know if you saw Jim carvills rant. That guy's a fucking genius. He's he's a political. It's about political power. It's about power and our moral imperative southern Florida you. We know that it's not it's not to bring fuck and burn it. Why is Bernie Sanders on the? This is what Tom Perez. Or whoever actually has a pair who shows up after Tom Perez is justifiably escorted from whenever building the DNC occupies right now. We should have debates. They'd say okay. Are you a Democrat. And do you have any. Why the Hell is Andrew Yang on the debate stage? I like him. He's got great ideas so two guys so to the riders of the Colbert report today run for president event. You have better ideas and are much more qualified than Andrea. I love the guy you know who doesn't want him to be president. Anyone that worked with him. Why is Tom Star? A guy that made a billion and a half dollars pulling out of the ground is all of a sudden decided. He's an ECO warrior by is way onto the stage and then people can flayed him Bloomberg. Gloomy was governor of the seventh largest a state in the union called Manhattan. He absolutely deserves to be in. There is there are only three people to have any business being on that stage right now who everyone and finally is GonNa realize okay update and I flirted with some bad boys or some idiots in the nice guy. There are only three people the matter now only three. That have any chance of our moral imperative. Live of kicking the Weirdo out of the office. I is Bloomberg sack in his mayor. Pete who barely gets on the stage the mayor of a town where he got eighty nine hundred votes and the third and the person with the most momentum is Senator Klobuchar if they want to sponsor of British Labor Party debate more power to you burning go to that. He doesn't even as a Democrat. He's up fucking so people from the Tom Perez and the guy from Softbank fired okay. I want the DNC to figure out their job job is to get trump out of off right the DNC and soft bank's got. I'm going to have to take you down now. Something happened. Had I'M GONNA have to reach in eleven thirty texts tonight about this. Would I do chasing entities. Our it could be eleven. We're spanker it could be eleven thirty three. I don't know what I'm going to send it. But it's very sensitive fences a lot. It's coming it's going to be a car we're GONNA make ask you this. I'm serious don't you. Do you really think this shit show politically correct. Why do we have a democratic socialist onstage? He's got. Why do we self identity Donna Fide Socialists running for the Democratic America? That's why and that's the way it goes. There's a little that's very president's GonNa Donald Trump. I'm worried you're about to get Bernie road on twitter etc.. Just say Oh they're the only people meaner than them at the crypto and the Tesla weirdos burning people are very aggressive. Everybody is on that thing and we're just curious wish doing this week this week. All kinds of things I was supposed to go to California but now I'm not I am I am. I am working on lots of things. I've lots podcasts. I've got all kinds of interesting things And I won't be here in. DC just doing things A man's going back to work for the first time after maternity leave which I think parents parents in this country should have a year off. But they don't. How long did you have office? Three months. Some reinforcing and subtle but nice text messages. asu Thirty two nine nine eight by that phone seriously. And then we're GonNa make a movie called text and it'll be all about this relationship. I think it's been done. It's been done and I don't think we're that interesting. But anyways that makes her compelling view all right I I will say eleven thirty tonight I will send you a loving massage of attacks ax. Okay how about that crashing text. All right thank you so much for everyone As Scott would you please read the credits as we yeah. Rebecca synonymous is our producer. Erika Anderson is our executive producer special. Thanks to drew boroughs and Rebecca Castro off. Make sure you're subscribed to the show on Apple Apple podcasts. Or if you're an android user check us out on spotify or wherever you listen to podcasts to Ross sorkin again for coming on the show Andy we love you. If you like the show. Please recommend to a friend. Thanks for listening to pivot from Vox media. We'll be back late this week for another breakdown of all things tech and.
"andrew ross sorkin" Discussed on Pivot
"Jobs are great careers for people. It's a intense culture but I think that's good for young people right out of school but the jobs number or the there that now the second largest second largest employer and it's hard to believe that on we are again at record low on him. It's three point. Five percent at ticked up to three point six. The most encouraging thing in the number was at ticked up unemployment ticked up. Despite the fact we they added a Lotta jobs which says the people are being drawn. Back into the workforce right in our labor participation rate is going on which I think is a good thing I think. Work is is I I think April happier. That's right. It's one hundred percent. You're the two things that really drive. Your happiness is how you feel about your work. Feel about your. Let me. Just get back to our previous discussion parasite that that was all about work and not enough work. And how do you find work in the due to work correct. That's right okay. Let's talk about Uber's earning all this week. Scott I knew knew you had some things to say about it okay. Uber is now in full. Yoga babble started sinkhole the Yoga babble index for I do a word cloud and then look ridiculous words. Let me just read you something. I'm from the Uber. Everyone was excited. Growth was up there. Only losing a billion dollars in stock moved ten up ten percent in what has become a total Kabuki Dan. Dan is called a public company earnings. Call which are staged Broadway productions where prepaid the analysts to ask softball questions this. This is verbatim from the call. We're making proactive. Changes to achieve significant cost leverage for both risa needs to refocus operating playbook including approve machine. Learning Al goes further automation and targeting incentive and online marketing spin stronger tracking and focus for off line marketing campaigns the reduction of defect rates and improve self service tools to improve customer. What does that? What does that mean? What does any of that I mean? They're the Rudy Giuliani of the information age. Let's just overwhelm with which ridiculous words this way exway and then lineup some softballs those burnings folks because the analysts are just terrible. I used to live blog of yahoo earnings and I always make fun of the art of and by the way. This is courtesy of my buddy. Richard Kramer is a genius at a rat. Nothing fresh in that analysts are do softball questions things but he did say if you WANNA cut to. It expects the company profitable What do you think about that projection ashamed by this time next year? Expect somebody profitable while it will be profitable based on Made up metrics. They'll come up with their own metrics. They'll say yes yes. We were profitable. If you look at everything but our costs. They'll come right now. They're already reporting something called segment adjusted. Eba which is what I would refer to as frauds planning. It's basically yeah. Let's take out the cost and then invent our own profit number on a gap basis on a gap basis. I will drive a Newburgh for a day which is an a big deal. I've always thought about doing that kind of interesting. I think I'll make a bad. Not the Dr Kossi. He wants to make a bed with me on a gap basis. There's no way to companies prophet. So I'M GONNA ask you one final question this time next year. It's been it's been it's been a the first year as a public company Dr Obviously took over very tough business this time next year. Where will it be so this is this is who we have on the show and that is we should have mark Mahayni News? The Best Internet announced on my bias. My against Uber clouds my thinking here because Mark Mahayni you know there are certain people when they speak immediately question your viewpoint Jeffrey. Sonnenfeld is wanted from me. Mark my hands for me. You're a little bit that way not much but mark Mahayni. He likes us. Companies got along all on it and he he is. He is very good so we should bring him on but speaking speaking speaking of causing predictions. Let's revisit we're not GONNA revisiting. What did I say about Casper? What's the dossier talk about? His dog beds longer after the lockups. We're off you didn't say. Within days seventeen to nineteen they repricing. Twelve is such that they can have a pop. It opened a ten seventy one. Today it's already got it's already crashing. And I we said our prediction would be single digits by March one. It's going to be single digits. Probably at the end of the day. All right. This thing is a little. It's the Blue Apron of two thousand and twenty predict. What do you think? Do you think guber gets to profitability your career. I'm on your side not mark Mahaney's I think it's a troubled business. I think it's I think it's unless prices go up. Prices have to go up and then it's a growth problem so I think if prices prices go up sure why not speaking about work I wanted to do a behind the scenes talking out of school segment called Scott and vox okay. Now this is GonNa make everyone very few minutes. They have a guest coming up. So let's okay okay. So it's clear you and I it's clear. Pivot are now the tallest midget and we are literally the star. NBC must see Thursday. Vox or whatever it is do here right. It's like everyone is calling me and being really nice to me and I'm having dinner tomorrow tomorrow night with the yeah and bank off. Who seems like the nicest man in the World Marty? Moe Who's also that he was like the second nicest man in the world and like what can we do. What can we do? So it's obvious you're the Michael Jordan here and I'm the Scottie. Pippen the like okay. Make sure Scotty happy every once in a while. I'll just check in with Scott. Scotty Pippin God really. Don't Scottie Scottie. Pippen and I know he's he was like the number two. He was one of the most amazing basketball players in the in history except he had he had the misfortune of playing on the Chicago Ability. Michael Jordan was playing. You know kind of Michael Jordan and the doors are so no one remembers Minoan. Remember Scottie Scottie Pippen so last week and by the way where are are we going with this situation bring home all right bringing some land land. It's got angry at me of the Sheryl Sandberg saying you semi tax message at eleven thirty PM and you are very angry are you. We called it deeply on cool and really hurt my feelings because I'm this terrible combination offensive yet. Insensitive which is just the worst place worst type of person in the world. I offend others yet. I find reason so you got me really upset and got me thinking outside of the House. I'm an extrovert and I felt like there's no tomorrow and I'm I'm very aggressive and very very much pursue conflict. When I'm at home I like harmony can in my home? My son has his finished the fifth grade which I described describing academic terms of she gets real they decide to start giving kids CS and DS and my wife loses her shit and goes after my twelve year old this this is unacceptable. No more electronics playing basketball and the dog leaves the room. It gets so uncomfortable ugly and I want to leave the room. I want to go into the fetal position I do not like. Is this particular plane. Let where are we going here. So he goes into his room he goes newsroom in my role is to go in there and make a plan with them and then when my boys I adjust their back I rubbed their ears do geography questions and quizzes to relax them they go to sleep the next morning they wake up everything's fine. The scar tissue heals over the muscle. That's damaged goes back stronger than when they're nineteen and they get their heartbroken. I after not GonNa Freak outs on the whole. It's a good thing but it is really painful for me and it was really painful for me when you sent that message it show Bankok keeps saying what can I do for you so I have figured it out when you send me mean text messages at eleven thirty upset me. I want bank off to come over crack. My background. My ears and ask the capital of Iceland is Oh my God really. I'M NOT GONNA said even more tax. Good God go Keira. It's wreck you. Oh right Scott. I will not send you text anymore at eleven thirty but it wasn't mean at all but whenever Helix thirty eight. Oh my God i. I'm always he's up on Scott you understood. Promise I didn't tweet it you did I did. I did not did not thanks. Yeah that that'd be good arguments to twitter. I'm GonNa only send you nice things from now on on on on text. How about that story stories during the workday? Let me just tell you there. It is gloves off workday. You'RE GONNA get mean texts all right take A. I'm sorry I made major upset. I guess I suppose anyway. Scott we're GONNA take a quick break when we get back speaking of lovely people. We're going to size your ears. Friend of Pivot Andrew Andrew. Ross Sorkin is here and we're GonNa talk about a bunch of things around the stock market and instagram everything else when we get back if you work in. HR or learning and development getting employees to use new learning tools can make you feel like a nagging adding parent. It's basically a Sisyphean task to convince them to dig into whatever software you're using unless of course you're using linked in learning linked and learning. Earning is just different. It's the only learning tool employees actually use Lincoln. Learning is the preferred learning tool.
Interview with Alex Karp, CEO and Co-founder of Palantir
"This is walk. Thought this next segment is the conversation. Andrew had with Alexander Co Founder and CEO of Pailin. Tear the Tech Company provides software and data services for well a a lot of groups as you'll hear but it's probably best known for its relationship with the US government also quite controversial Given the company's role full working with the government in defense on ice with our allies with corporations there's always been view. It's a very secretive company in two thousand nineteen gene alone. The company signed one and a half billion dollars in. US government contracts one of those contracts in eight hundred million dollar deal with the Army Peletier beat out fortune. Five hundred company Raytheon for that one marking the first time that a venture backed firms received that caliber of recognition from the Pentagon and possibly more than anything else though. It's the company's Partnership With Immigration and Customs Enforcement that's created a stir until valley as well as internally Turnley at Peletier Alex Carp founded the company alongside a few other entrepreneurs including famed venture capitalist. Peter Thiel he co-founded Pay Powell and founders fund and invested in facebook anyway. Alex is he is one of the most unique interesting people in the world of business. He rarely does interviews but luckily for us. He's speaks Andrew. I gotTa tell you it's every time I have an opportunity to speak with him and really we've been able to do it now and you'll hear Davos you're just sort of blown away by the things that he says so here. It is Andrew. Ross sorkin annual interview with outs carp mark. CEO of talent here in the Alpine ski town of Davos Switzerland. Arc's thank you for doing this. Thank you so this was a very big year for you. We have a number of contracts. This is true we did very well so what happened. Well the long version is about five years ago we looked at our product offering and decide to rebuild our core offering for the government start with a commercial product which can be used to commercial and government and revitalize tragic going to market and and we saw the results Last year but dramatically this year and so that ended up with two very very large contracts that are public number of contracts that are not public and commissioner impact. That we're very proud of just so we're clear that's released publicly. One point five billion dollars in new contracts with that's true to you speak about those contracts. Let's well two of them are public. One of them is essentially. Give the DOD glow operating system in software with a on a timeline that otherwise I wouldn't be realistic so transformed the way. Decisions are made inside what amounts through the largest data organization in the world in timeline. That is very very aggressive. Another there is a little more classified and And we're we're just pouncing forward. The Core Mission of our company always was to make the West especially America the strongest longest in the world. The strongest ever been And for the sake of global peace and prosperity and we feel like this year we really showed what that would mean visit today. Do you believe is being driven by the government work versus the corporate. Well in the last couple of years most of our revenue has been commercial. Most of our clients have been government the the government government work inside and outside America's so strong Because of how it compounds that it's gone from being sixty forty commercial government to probably probably fifty fifty the impact of government. Work is the thing we are obviously the most proud of and is the past year. This sort of larger geopolitical Nicole conversation around. What does that into the business? Well you know decoupling. And and and strict regulation is a bonanza for pounder when we looked at what what did what should be done with data fifteen years ago. Most people aren't thinking about it and instead of thinking of this simplistic problem with aggregation of data. We thought about data's how can you aggregate and disaggregated this aggregate disaggregation meaning. How can you have silos while at the same time being able to call up at a granular level of what you're allowed to see in that silo? And what does that mean at a political level as Countries and states both need to have a horizontal view but want to have a more vertical view. They need Assad for platform that can allow a two countries to work together without sharing all all the information or to jurisdictions to work or to companies that for example a global company will have data stores in America data stores in Europe. Where only a subset can be shared in our architecture is is quite frankly built to deal with that and was built fifteen years ago to deal with that and revitalize five years ago so this decouple these these this decoupling world combined with Regulation quite frankly also combined with deep skepticism towards consumer in the valley is very much helping us. WanNa get to the sketches of the valley and just a moment but I wanted to ask you specifically about the protests this year about your work for ice and that ice this contract and what it's meant for your business we as everyone who's followed our company knows we take what amounts to strong but often Controversial positions the position of our company from the beginning was we're GONNA make America and the West Song and safer by integrating world class software into what amounts to legacy I see do systems one of our contracts at ice and there's an we started this contract under Obama and obviously there's a lot of concern legitimate concern about what happens on employer how it happens and what is the enforcement. Look like certainly diminish part of our work Finding people in our country who are undocumented. But it's a legitimate intimate complex issue. My personal position is We acknowledged a complexity people protesting whom I respect also dogs complexity is an issue that that is controversial and complex enough that the small island in Silicon Valley. That would love to decide what you eat. How you eat and monetize all your data should also decide who lives and your country and on what your conditions? There are elections. There are rules. They should be enforced. A transfer of one presidency and other and the the view of Silicon Valley that we get to the decide should not be the way the site of course this led to protests. My House has been protested for many months almost every day. Our officers protested many Palestinians who do not just follow what I say but are critical people. protested against internally. Some people were so upset about it that they left. These are very hard decisions. I I respect the people that that reside they can't be involved in this but we have a position. Are you comfortable with the trump administration's approach on the border.
Merger Monday, Bloomberg's Bid, Holiday Movie Recs
"Good morning everybody. Welcome to Squawk box here on. CNBC we are live from the Nasdaq market site. In Times Square becky quick along with Joe Kernan and Andrew. Ross sorkin first step on this morning's pod a couple of updates on stories we've had our eyes on or IRS's on if you get your squawk through ear buds instead of on a screen. Remember in October when French luxury conglomerate. LVMH made a bid for New York's iconic jeweler tiffany. Well they up the bed the very shiny prize a big deal. This morning of the world's largest luxury goods company has now confirmed his reached a deal to buy tiffany. This has been quite at some time in the making the price tag this time. One hundred thirty five dollars per share in cash sixteen point two billion dollars total the largest ever in the luxury sector the boards both companies approving that deal yesterday afternoon and the transaction expected to close in the middle of next year will mark the end of Tiffany's one hundred eighty two year history as a standalone brand and a little blue box isn't changing but it does reflect the changes to remain independent amid increasing consolidation across retail and adding tiffany's Eddie Murphy to the portfolio will strengthen. LVMH's position forcing watches jewelry. The group acquired Gary and back in two thousand eleven eleven like Lvmh t LVMH T- LVMH. What if I would pay? How much would that cost the figure out to add a t not to do you think they should? I think they should add T. You think it's that important. Is that valuable important as those ugly back and look but what is amazing is that they did get him up. I mean this one hundred thirty five dollar price tag came up from one hundred twenty dollars recall when when this when when they first went after him and the question I think we threw out. There was whether they'd get one hundred thirty five bucks one hundred at forty. They didn't push back if you go back. And Look at tiffany stock even two or three years ago where it was relative to where it is today so I I mean the interesting stuff therefore therefore baby gifts like a little spoon. Yes in general. I don't know it's like super retail. I think Chinese people love in China. It's big and Chinese on these sorts of come here it's really be in the United States. Just me personally. I you know when you go to forty seventh street. I'm sure not. I mean I would rather go down there. forty-two the haggle. Well just don't pay absolute top dollar for for stuff that everybody else has and another deal. We've been following following Charles Schwab effort to buy. Td Ameritrade as of this morning. That's done to Charles. Schwab Corporation is going to be acquiring. Td Ameritrade this is a story. We we first reported last week. Td Ameritrade is now naming Stephen Boyle as the interim president president and CEO suspending their CEO. Search because obviously this will be taken care of with with this deal. Charles Schwab is offering issue is going to be issuing one point eight three seven shares for every td ameritrade share. That's out there We'll continue to keep an eye on says Charles Schwab saying that. Toronto Dominion Bank's going to be holding about thirteen percent of a stake in the combined company. You could see right now. Charles Schwab shares which ran up last week on. This news are right now down by about twenty two cents to forty seven ninety eight so maintaining basically the gains that they had seen last week on this when it was first announced. Td Ameritrade shares at this point indicated by about two point three percent. That's a gain of a dollar thirteen to forty nine twenty six again after they saw gains last week as well. Charles Schwab saying that they see this deal being fifteen to twenty percent of creative give to the adjusted earnings per share in the third year in the third year of this deal Schwab right. It's going to be called Schwab. This sounds sounds like a fun thing though analysts have looked at this and said because they both have very strong trading platforms. That you won't see as much of the accretion in terms at the probably both the Charles Schwab and td Ameritrade plan trading trading platforms operating. Because they don't overlap. There's some things the. TD AMERITRADE has like options for insurance little bit stronger. Charles Schwab has a lot of things like People who will talk to you and guide you through these things because of that the probably see some analysts analysts speculating around forty percent in terms of the accretion that they can kind of combine and put these together with those both platforms need to advertise separately swap box. Random House expected to be where you will see some of the. Oh no no no I got a double double down on both platforms. They say anything. But I close with this point break- fees and I don't know I. I have not seen that to me though the two issues. That will be interesting a break-up fee whether you interesting because you think out trust issue not so much on the consumer side but potentially For for all of the investment advisers out there really I mean I think collectively collectively they have like sixty seventy percent. Would you say this is that works serious antics three so they are two things there. There may be a look. Get that and so you you care about that issue. The other issue would be about deposits that that used to stay at. Td Bank so td Ameritrade used to run all their deposits. It's into Toronto. Dominion Inter Dominion. That was actually a huge fee generator for TV bank. And so once. If you take those out I assume Schwab is going to keep those Deposits in their own bank effectively. What that does to? TD LONG-TERM SO. These are some of the questions that I think at least in baking world. They're they're probably so but I don't know I'm GONNA. We'll look great deal. That's good news for holiday. Travelers gas prices down this quarter of the lumber survey the national average falling four cents cents to two dollars and sixty six cents per gallon drop is likely due to an increase in supply now that several refinery repair projects have been completed. Also a word of warning warning triple as saying Wednesday is the worst day of this holiday week to travel with trips taking as much as four times long four times two hundred percent longer due to congestion I in some weather issues. That could be a little more difficult Wednesday out of on the East Coast here starting in Colorado and coming across do you. ooh The minivan. Yes sir. What about it? Is there a a hybrid model that you can buy make hybrid models. That'll make a cool or no. Let's give it up for just wondering why you haven't truck Tesla. Yeah that's what I was saying. Why why aren't you? Just springing brings for something electric because you need a minivan supplements. There's no electric minivans or there's no My mic one. Now they're not cheap anymore. Ah Minivans by themselves this is unlike so like so many of you. That don't walk the walk when you talk about other stuff. The vacuum cleaner in the minivan is more important than
Bill Gates take on Elizabeth Warren's wealth tax
"So what do you say we get a take on a loser with Warren's wealth tax from Bill Gates Bill Gates has paid a lot of money in taxes he was doing a I have a Q. and a with Andrew Ross Sorkin who is a writer for The New York Times you also seem occasionally on CNBC end of Bill Gates was asked about the potentially chilling effects of these wealth taxes that Elizabeth Warren is pushing here is a here is a of Bill Gates talk about this right now well I think de spam of the two parties in terms of where they are in taxation has never been so broad you have in a one party reducing corporate taxes you know still supporting carried interest taxes on capital or way way less than on labor and in on the estate tax they're still talking about Hey that's a bad thing that a dead person should pay part of their wealth and you should reduce these accumulations of wealth and now on the other side you have as you say is six percent wealth tax I am to believe something in the middle you know I I I think you can make the state tax higher you could even take people of south on huge gains for you know say ten years and say okay that there should you should create a taxation event there are I think are you treating capital income the sameness laboring com that goes on very long distance so I'm all for super progressive tax systems you do need a couple these things with more transparency the fact that you can through trust like structures hi lots of you know beneficial ownership and get away with a lot both at the corporate level and at the individual level we can do a lot better their soul I'm impressed that there are few candidates the go even beyond like you and I do think if you tax too much to do risk the in capital formation innovation U. S. is the desirable place to do innovative companies are I do think you risk that now you somebody can say I'm very biased since I've been a prime benefits for you the existing system but you know I do I'd love to somebody to find a middle ground approach because the government's role in health care and better education the government does need more resources than it has today so what would you do alright well if you make the tax on capital same as labor you go back to the estate tax that we used to have doing something like the ten year things into words super large fortune the the fortunes are not as big teddy says a return on capital the big fortunes are the return on creating companies that a T. very strong positions particularly in the technology industry that's where you get the super big numbers and so there you know I've paid over ten billion in taxes I pay more than anyone in taxes but I you know I'm glad do you know if I'd had to pay twenty billion that's fine aw but you know when you say I should pay a hundred billion okay then I'm do a little math about what I have left over sorry I'm just kidding
China Trade Talks And How The Markets Are Responding
"The warning everybody welcome to squad appear on CNBC we are live from the Nasdaq market site in Times Square. I'm becky quick along with Joe Kernan Andrew Ross Sorkin China is again I today on the podcast as two key events were getting underway while squawk box was on the air the latest round of trade talks between the US China in Washington and the sold out NBA priests season game between the Brooklyn Nets and the Lakers and Shanghai a tale of two arenas here's Andrew with the news breaking overnight that underscores the challenges American corporations ace when working in China's apple now removing an APP from its APP store that Hong Kong protesters had used to track police movements the APP is called H. k. map live it was rejected by apple earlier this month but then allowed to go on the service last week Apple said they verified with authorities of course Hong Kong authorities you say that the APP had been used to target an ambush police in threaten public safety after apple removed the APPS and protesters said they make quote visit it's Hong on store we talked about this a bit yesterday on the show but this is a new development of them taking it off the service and then the secondary pieces you know when other authorities go to apple in the United States for example and I'm thinking of ways and sheriffs and others have already done so instead to Google stop putting this on the way service apple stopped taking the service there are other APPs by the way in the United States and in Europe where you can see where police and other people are how it's being used I don't know but interesting yeah I just interesting that every step is going to be so much more closely monitored from any corporation and and I think getting forced to choose sides and so is this is just a political issue right here I mean is this China is this the que- The question mark is product to this specific issue. I don't know enough about it in in the situation I don't know if there were police that we're targeted but it certainly seems the situation where you'd like to hear more if we had v8 in Seattle again or something like that would we be mad if apple shutdown an APP that allowed those protesters I got no I'd like to see I'd like to see them do it and I will say the difference with weights are stationed when you're speeding and you're trying to look ways is on made the argument that by knowing where the police are it actually slows people down it actually reduces were never legal reduces speeding rather than you know I don't know if that's true or not WanNa get it over to Kayla Tallahassee who has some details and maybe some news well it's hard to know Andrew because every hour it changed his talks with Chinese principles led by Vice for me Leo who will still take place today despite what I'm told more difficult and tense conversations among lower level negotiators this week but it's the format of the talks how long they will last which is very important in Chinese diplomacy that's being most closely watched right now the south China Morning Post last night reported the China will leave tonight signaling displeasure and frustration to the US White House negotiators were caught unaware of that news spokesman saying there was no change in the schedule and senior administration officials telling me the US still believed there was a big dinner planned Thursday and that the vice premier was going to be departing Friday evening but an hour later a principal from the about the situation was fluid and whether talks extent to Friday was still an open question that may be summoned the Chinese delegation could leave or that the round could indeed and early but that was still an open question media reports today show a couple olive branches that the US may offer to change that one green-lighting license for always suppliers and to rolling out an already agreed currency deal a senior administration official tells me the president still hasn't made up his mind how he will proceed He's going to based on how negotiations today but here's how he responded when asked about a deal publicly yesterday I told that the president she said you know this I'd be like fifty fifty deal because a fifty fifty deal you're like up there we're down here so fifty fifty it doesn't work you gotta have a little balanced this has to be a better deal from our standpoint and I think they fully understand it as Chinese officials have said any deal would need to put the two countries on equal footing it would need to treat them equally it would need to be a win win situation but clearly becky with the president is describing is not that we'll see how toxic oh behind closed doors will bring the latest as we have it Kayla maybe the most important point for the markets right now is just what you said about the fluidity of the situation things changing so quickly which may be why we're now seeing the futures relatively flat compared to what we'd seen earlier in the trading session yet things changing relatively quickly and the Chinese officials not shy about using press outlets to telegraph exactly how they feel an exactly what they plan to do and how they could throw a wrench in these talks and how the markets could respond that's a very clear message that they're trying to send to the White House into the president will see if it lands Kayla thank you for joining us right now for more on all of this is China Beige book in national CEO Leland Miller and Leland these are some of the most complicated things to try and discern even if you have sources close in Washington you don't know what the other side is thinking and the sides could be changing their minds pretty rapidly to how what kind of how do you read the tea leaves how do you play this mind game that's taking place the most important part of the he leaves right now is just figuring out what's white noise and the reality is almost everything you're hearing right now is white noise the fact that the deputies beating didn't accomplish anything no surprise around you know maybe it's that may look there were some really bad news from the Chinese perspective earlier this week whether you're talking about sanctions blacklists these is being pulled away the Chinese have reason to try to show their displeasure with this but all the nitty gritty is GonNa Happen today and tomorrow in the trade room and they have a lot happens if well look you know anything can happen but if they cancelled tomorrow it's not because of what happened in the deputies meeting it's because they don't get what they want today and I have a feeling they're gonNA get a little more substance than they think today one of the seasons there's been no progress so far is that the administration hasn't formally put a December punt on the table and they've been unwilling to talk about a pullback of the September tariffs these are in play right now we've got October the important now markets are looking at this enormous bellwether the White House isn't what do you think just about how the NBA situation playing out. How apple has now pulled this that that the Chinese said the Hong Kong protesters were using trap police there I mean that to me shows a whole new world and trying to deal American companies trying to deal and operate in China on the one hand it shows that look Dick Decoupling or even moving towards directions going to have serious repercussions for Corporate America this is a new card or this guardsmen being played on a daily for the last forty years and for the most part we have not taken notice of it that is exactly it but I think a an issue try that sort of goes on you know that's not what people are paying attention to now I think people are going to put the big picture together and there's going to be a concerted America pushback decoupling go go back to my ah we've been we've been in this marriage sorta with China symbiotic
Introducing Squawk Pod
"I'm becky quick. I'm Andrew Ross Sorkin. I'm Joe Kernan and you're listening. The SQUAWK pod ends great. Thanks now what they're going to get a high. You can't use squawk box the most powerful business show on the planet and now it's a podcast. PR TO CBC control to bring in show musically coming the becky and three this is squawk pod brought to you by the team behind squawk box. I'm CNBC producer. Katie Kramer daily are anchors producers and crew will bring are you the best stories debate and analysis from the biggest names and business and politics joining us right now is Berkshire hathaway chairman and CEO Warren Buffett and J. P. Morgan Chase chairman and CEO Jamie Amy Diamond joining us by the company CEO Ginny Rometty joining us on the IPO Day Uber Dark House for shy. We are joined this morning by Melinda Gates. Mr President are are you with us. I am with you. Jill great to have you on. Thank you doing Joe Becky Andrew as they discussed the moments that matter setting the agenda for the Business Day Joe Kernan have been here forever. I am one of the CO anchors of squawk box which has evolved into. I think the best thing on TV at least in the morning maybe all day long. I'm becky quick and I've been with squawk box for fifteen years. I've been working with Joe that whole time been sitting next to Andrew for almost eight years at this point for me. squawk box is breakfast with most interesting people in the world. These are the people who are coming up with the next ideas in business the next ideas and finance next ideas and how we should be running this country. It's a privilege to get to talk to them every day. It's more entertaining than any other morning show but you actually might get some useful information. Squad cod is everything everything. TV viewers expect more three hour morning. Show plus behind the scenes content from the production team curated in a thirty minute podcast. Hey Andrew it's Katy. Can you hear me how are are you good morning. DC yet my name is MAG. I'm the tech this is Angela Syndrome. I am the production system for Squawk box and we're just about to get our next guest onset. Is it a two way conversation. Power Pauses on podcast workout. Pregnant Policies Work Related Andrew. It'd be much better at this much more tech savvy craziest show in the world now you get it in your ears to get the smartest takes and analysis from our TV show in your podcast feed every day subscribed squawk pot apple podcasts spotify stitcher or your favorite podcast APP follow us on twitter at squawk. CNBC and start listening. We are clear thanks guys. I'm David favor join me crawl into me a and Jim Cramer for the opening bell our of C._N._B._C. squawk on the street the podcast subscribe for free wherever you listen and you can always catch us live weekdays at Nine A._M. Eastern C._N._B._C.
Lyft shares soar on Nasdaq debut, setting stage for Uber
"Lift serving in his first day of trading making it public debut right here at the NASDAQ. Let's go out to Deirdre Bosa for all the details. Hey, the address. Hey, melissa. That's right. Shares of lift hopping more than eight percent on its debut. That's a good signal for the company and a good signal for the IPO to come. But of course, this story is just getting started remember snap on its first day of trade, though, shares pop nearly fifty percent and a few months later. It was back below that IPO price was also group on another hyped up tech name that was loss making a profitable at search some thirty percents in its debut and just a few weeks later it had lost all of those gains. Now, the point is I don't be a Debbie Downer. But that this story is just getting cited, and they're gutting started. And there was a lot of excitement over these names. But they struggled after they became public companies. And there are still a lot of questions about lift such as it's tough to profitability and its dual class structure if things do go sideways this morning, though, co-founder Logan green telling Andrew Ross Sorkin that it's corporate governance will actually set them up. For long term growth. Collectively, we really need to set the company up for this long-term opportunity and create the type of durable growth that we're going after. Uber on the other hand will go public with a one share one vote structure, we are tipping that IPO as early as April. So so far, Melissa we have one day judge lift on it. It has been a good start that should bode well for at least when it's trying to get its valuation back to you. All righty, your thank you both for joining us from San Francisco, despite the U for you today, the market Rasen vulnerable states who has lift about to lift stocks to new highs will the IPO parade reignite this rally a lot of questions I want to die because you're into when there's so many questions, but it's also worth noting that lift shares open higher by twenty percent finished the day higher by eight percent.
"andrew ross sorkin" Discussed on WDRC
"New York Times, Andrew Ross Sorkin who wants banks to start tracking your purchases at sporting goods stores in gun shops, and then tried to stop people from buying multiple firearms in a short period of time. I'll tell you what if Andrew Ross Sorkin was on the program, and I'd love to talk to this joker about this. I'd tell him there have been times I have made multiple purchases of firearms at the same time. Usually it happens around Christmas time when I buy guns. Now, the person I'm buying them for has to come down and actually fill out the form forty four seventy three. So I've always done legally. But my Bank might have said why large you have several firearms on this. Purchase. Are you thinking of becoming a terrorist or a mass murderer? Now, I gotta tell you not considering that line of work at all. That is not what I do. I follow the laws, and I don't hurt other people. But would you be okay with your credit card company doing that on behalf of the government and the anti-gun of this country? I would hope you join me in voting. No on that. By the way, in the last Twitter poll of two thousand eighteen before the Christmas holidays, I asked you as die hard the ultimate Christmas movie. Only thirteen percent of you. Agreed with me and said, yes, thirty six percent of you said a Christmas story thirty percent of you said a different movie altogether. And twenty one percent of you said, none of the above. Tonight's Twitter poll is brought to you by amac. The association of mature American citizens. I joined the group a long time ago. It has the conservative values..
Pompeo meets king as Saudis expected to say journalist killed accidentally
"Is in Saudi Arabia meeting with the Saudi King and crown prince hanging over all the handshakes, and smiles is the disappearance of a Saudi journalist Jamal kashogi who has not been seen since he walked into the Saudi consulate in stumbled Turkey two weeks ago. Turkey says the Saudis killed him NPR's. Michelle Kellerman is traveling with the secretary of state, which means she too is in Saudi Arabia's capital Riyadh. Hi, michelle. Hi there. Mary louise. So I'm going to get to the substance of these talks today in a minute but start with the optics. They are tricky. I I mentioned friendly handshakes. And smiles, meanwhile, the agenda is to discuss an alleged murder plot by the Saudis. Yeah. It was kind of striking because you know, on the face of it looked like this, very typical. Visit by secretary of state going to see the king at his palace. A brief stop at the foreign. Ministry and a lot of time with the crown prince Mohammad bin Salman, who's this young very powerful figure here. We're told that the conversations have been direct and candid, diplo speak for quite tough. But you wouldn't know it by watching these men, greedy niche other in front of the cameras and talking about how important this relationship is talk about the substance. What did they say to each other in these direct and candid talks? Well, they've the US officials have said very little about that. I mean, they say that Trump sent Pompeii oh here to convey, the message that it's really important for the Saudis to conduct a thorough transparent investigation into the disappearance of this Washington Post columnist US officials haven't weighed in about all of these reports in the news at the Saudis are now portraying this as like interrogation gone horribly wrong. We don't know exactly how the Saudis have been spending this with bump AO in private or. Or if he believes them, but we do know that President Trump seems to at least according to his Twitter feed. Trump says he spoke by phone to the ground prints who was with Pompeii or at the time. And he says that the crown prince, and this is a quote on Twitter, totally denied any knowledge of what took place in the consulate. It does seem as the pump AO has been sent to walk this really fine line. President Trump has threatened severe punishment has words to whoever's responsible for Jamal kashogi disappearance, maybe murder, but but there's also a lot more at stake here in the in the wider US Saudi relationship in this country. Mary Louise is is really key to the Mideast strategy of the Trump administration. There are big US arms deals at stake, the US policy on Iran is is vital here. The sanctions are going back into force and the the US needs the Saudis to keep the oil market stable. And then on the other hand the administration is facing a lot of pressure from congress members of congress are outraged over this apparent murder in the consulate in Istanbul and over the Saudi conduct in the war in Yemen. So I think you're totally right there. The administration is trying to walk. This very fine line secretary Pompeo is headed next which means you are headed next to the capital of Turkey. To anchor of what's the agenda there? Well, he's going to be meeting with the foreign minister there, obviously Turkey is also really important ally in a country that wants to get to the bottom of this to valise in Turkey today were searching the Saudi consulate and say they found evidence that the Saudi journalists was killed there. So it's going to be to follow up on those investigations. MPR's Michelle Kellerman. Reporting from Saudi Arabia is not just governments figuring out how to deal with Saudi Arabia's role and the suspected death of Jamal kashogi. Major corporations are sensing themselves from the kingdom top executives have pulled out of an investment conference scheduled to take place in Riyadh next week. They include leaders of J P Morgan and Ford Andrew Ross Sorkin of the New York Times also planned to attend and moderate panels. Not only did he pull out. He is also now reporting on how CEO's made the decision to withdraw from the Saudi conference and he joins us. Now. Welcome. Thank you for. Having me you say this incident is forcing business executives to become reluctant statesman. Why reluctant well, I think that over the past year or two really under the Trump administration CEO's have been forced into these uncomfortable positions of having to speak out on moral issues. This conference in Riyadh known as Davos in. The desert has become a crucible of sorts for so many CEO's over the past week. And all of the being done without really direction from Washington. Treasury Secretary Mnuchin is still going CEO's have been
"andrew ross sorkin" Discussed on On Point with Tom Ashbrook | Podcasts
"It's a montage of moments from testimony on February eleventh, two thousand nine now, Andrew Ross Sorkin. Let me ask you. I mean you've written about this a hearing that it, it just takes me right to this question about there isn't one necessarily one cause to the populous surge. We've been seeing in this country, but certainly the the financial crisis contributed to it. Right. We had Occupy Wall street the tea party all the way up to the the election of President, Donald Trump, but an and now we have this hyper partisanship as well. So, I mean, is it a painful irony that the financial crisis and. And how our government and financial institutions responded to it contributed to this populism which now may have weakened the very institutions that have to deal with the next crisis. All there's no question and and you really do. I look at the crisis as a direct line to where we are today to the election of the president President Trump today. It was a moment, the cleaved, the country, the pain, the suffering, the idea of losing your job, your home, and ultimately your dignity by by default was going to radicalize if you will, the voter base on all sides, and you saw it with Occupy Wall street on one end, you saw it on the other end with the tea party and what it's done to the political dynamic in Washington. If it wasn't broken before it's almost destroyed today because you have people on on such extreme sides of things. And you know, one of the things that does happen after a crisis is is this idea. Of populism and and oftentimes since of inward looking nationalism. I think you're seeing that now in terms of our own relationships with allies in terms of trade, you know, when I wrote the book too big to fail, we talked about that phrase in the context of financial institutions. Today we talked about in the context of cities, municipalities states and countries. And if you think that our whole system is a function of trust, meaning the Chinese need to trust us. The cat Canadians need to trust us in the sense that they're buying our debt because they think we're good for the money. But at some point, this whole whole system can unravel and it unraveled when it unravels it unravels quickly. And so when people talk about the next crisis, those are the things that I really worry about. Well, do we trust ourselves enough? I mean, I'm thinking about two into thousand eight. We essentially it was fractious for sure, but we had a bipartisan coming together that something. Had to happen. I mean, there was the transition, of course between the administration of George W Bush to that of President Obama. There was legislation again, fractious coming out of congress, but yet, you know, it happened. I'm not sure people have faith that kind of coming together could happen in Washington today, you know, you would hope that a crisis would bring people together. It typically does, but given where we are in the moment, it's hard. It's hard to see how how that would happen. If if another rescue effort were were needed, you look even at by the way some of the regulations. I'm not sure they're to me work right now. There's a view. The Dodd Frank has what's called living wills for the banks and that they could be there'd be allowed to fail. It's not so clear to me if one of the major banks in the United States really had a problem that that the country politically would would decide. We're gonna roll the dice and. See whether this theoretical living will actually works because the other side of the cliff could be the abyss. And so I think there's some real questions about all of this and and really how prepared we ultimately are and how prepared we are for different types of crises. You know, we keep talking about the classic sort of run on the Bank, but I think there's much as I, as I said, when you think my, if debts the the match that lights the fire, this idea with the the trade relationships, I think that's, that's, that's that's a real issue. Cybersecurity, if given the size of these banks there now too big to fail squared by the weather, the bigger than they've ever been..
"andrew ross sorkin" Discussed on Money Radio 1200AM
"Smoke cigars and i should say i don't what's the three names andrew ross sorkin the guy's name is andy sorkin by the way he's the kind of guy that no my name is anan ambi sorkin it's andrew ross sorkin a new one time a guy's name was like i can't remember victor and i said oh hey vick it's not vic it's victor if you know what i mean but trust the guy like that you know the three names just a little bit odd but i digress but andrew ross sorkin really trying to put in a little dig but here's what i thought was very interesting about dr scott gottlieb's comments saying talking about use patterns and he said we don't know the use patterns we don't know if there's not any health risks but we know that people do not smoke premium cigars for the nicotine and for him to insinuate well we we've got to look at this get the same model nicotine and smoke don't if that were the case you'd see every cigar connoisseur outside a building smoking cigars throughout the course of the day they'd be running off airplanes running into the smoking area lighting up a double corona rhetorical we know that's not the case so i don't know what dr gotlib maybe now he got a little corrupted by mitch zeller as i like to call amidst zealot who oversees the fda's tobacco division but we'll see what happens but i will continue this conversation and other developments in the world.
"andrew ross sorkin" Discussed on WNYC 93.9 FM
"I think that that was quite possibly part of what insulated the leadership at lehman from seeing the situation as it was i mean andrew ross sorkin in in too big to fail just has a kind of a great portrait of that management structure as one that is really challenged in seeing kind of the the writing on the wall which leads to a failure of imagination for example prominent economists like ben bernanke they insisted just before the two thousand eight economic collapse that it couldn't happen i think what's really interesting about that is it almost that insistence that something can't happen isn't happening it's not a political insistence and a lot of ways i mean there's a lot of resistance to some of the realities in the world you know we write about the lead poisoning in in flint michigan and there you had a woman leeann walters who complaining about the quality of her water trying to get it tested you know trying to get attention to it and was just being ignored over and over and over again and eventually she got people's attention who still kind of wanted to throw out that data because it was not convenient and and you know that's really that's really hard and and that can be really no pun intended it can be really toxic to sort of figuring out what what's really going on in our systems facing up to inconvenient data address here's the problem from my perspective i'm almost always right and the people around me are usually wrong now tell me what's wrong with that statement and how you might go about changing that yeah so i mean if you if you have self diagnose yourself with with that i think that's a that's a great first step to recovering from that end in fact we see that kind of attitude in in a lot of failures wetter better they are accidental failures like china or colombia or if we are looking at something like walks waggin diesel gates kendall sort of people believe that they are that they are ride.
"andrew ross sorkin" Discussed on WNYC 93.9 FM
"Kind of brain damage like you get a promotion and you end up with kind of brain damage you kind of lose the access to this empathy but the interesting thing is there are examples of organizations who've really trained people to be able to listen and train people to be able to capture that descent that there organization shares so that requires a certain style of leadership when i was reading that it reminded me of in the seventies there was a huge blackout in new york city and i read about alone con ed worker sitting at a bank of equipment late at night when a cascade failure started to occur and he's looking at he was seeing it but he just could not believe what was happening interact and i think that that was quite possibly part of what insulated the leadership at lehman from seeing the situation as it was i mean andrew ross sorkin in in too big to fail just has a kind of a great portrait of that management structure as one that is really challenged in seeing kind of the the writing on the wall which leads to a failure of imagination for example prominent economists like ben bernanke they insisted just before the two thousand eight economic collapse that.
"andrew ross sorkin" Discussed on No Agenda
"Yes we could do that bids very dishonest but hill he won't do it though what we could easily do it yeah blamed the media for the kids getting killed they just got two clips to kind of wrap this up and see how this was for this was on cnbc boy those guys are stupid at what i'm the jazz are not where the real after that one of the real leverage lies it's not it's not in how people will we get look a lot of people by with cash they're of their payday loan prayed are all sorts of ways that people by guns and clerel on your furnace and about all guns it's about the ar fifteen right for the benefit of the bureau hasn't actually read it yes i wanna be very clear this is not an this is andrew ross sorkin who's always they'd these suck has to suck them off every morning effort to take guns away from people in america there are laws and and lesson in told people want to change the laws this is not that conversation this is a business conversation about conversation the extent that people believe that corporations are supposed to responsible fifteen how would or and this is about this is about this is this is about semi automatic weapons like the ar fifteen and products like bumps stocks and products like highcapacity magazines which arguably and you look at the polls there are a lot of people even gun owners who find those parts of things objectionable but were there's other people in there's a big second amendment issues say i won't be able to buy my air fifteen i'm not saying by the way that were banning ar fifteen on their certain stores that would have to sell them and decide they don't want to be they don't wanna have access to certain types of credit krause how good as.
"andrew ross sorkin" Discussed on Design Matters with Debbie Millman
"We never wrote anything there was a political thing that happened hbo and we got fired and so when the same three weeks we had the shoot bomb of movie and we were fired and i really did feel miserable and i felt like i wasn't sure where a path was open and i felt that i allowed myself to feel like this is fucked and unfair but soon thereafter i started making these these vines are in the middle of the store making the series of vines about why and how to do this kind of work and dave and i along with andrew ross sorkin we started writing on spec billions and each day that i would right i became stronger so that by the time we were halfway through billions i had cast off that rejection completely and i was only immersed in this work and in what was next that's it because and along with that his um iin never have a day that i'm not with my family was some travelling so that's the oath like i spend mornings with them and i always take my daughter lets me still even though she seventeen walker to school so i'm still spending time with my family and so if you if i'm doing that if i'm like with them and i'm doing that work i've won eight sometimes when people are so afraid of feeling fear or rejection or facing risk they think that that feelings can last forever and when i find is that if you do experience it in you allow yourself to feel it it will sort of past like a lot of other things do like hunger like being tired like any number of things went your process them look it is a bad it's terrible feeling i'm not making short shrift and oh i'm not really of i already and i'm not really of fear and i'm not free of aiding rejection i've just learned to manage it and in managing at you gain you gain power over it.
"andrew ross sorkin" Discussed on Bloomberg Radio New York
"Of the crisis the age of oversupply is clearly one daniel or put were this maybe there's like rhino reinhard rogoff and andrew ross sorkin 's wonderful too big to fail and there's other books this that and the other at the age of oversupply a really deserves a second read if you've read it before and if you haven't read it you're missing something and some of the great changes dinner albert the most frightening chart for me and francine in mostly for our children francine her grandchildren i'm sorry now children excuse me is your debt expansion it's three lines we know corporate debts up blablabla government debts up but i think a lot of people don't realize we're private debt is it's becoming what kotla cough of boston university talks about isn't it it is i mean the at this point we're back into debt cycle the real question is to what extent is that being taken on because of optimism on the part of consumers and to what extent is it just merely filling the gap between what they desire and what they earn and one of the one of the histories of the crisis or the bubble that preceded it is that so much of gdp was being supported by people pulling debt out of their homes for the most part but credit cards also counted in and this this vicious cycle of continuing to.