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we're going to have a house party ♪ >> good tuesday morning. i'm carl quintanilla netflix a big story. trading at all time high surpassing $100 billion in market cap for the first time after earnings shares up on strong guidance for on going growth which is driven by the commitment to content on the earnings call, reid hastings said because they're growing faster than expected, they'll invest more than planned. >> it is $8 billion but it will be higher in 2019 and 2020 so don't think of it as $8 billion and a new plateau. instead, it's just a point in time as we grow both the revenue and our content budget >> for more on the results, we're joined by foundation capital general partner paul holland who knows this company inside and out paul, good to have you back. >> good morning, guys. how's it going >> i mean we're sort of in awe

of what they put together in q 4, especially internationally. now we have anl iflalysts cominn the air talking about subs in the hundreds of millions eventually have we -- are you -- do you have a good sense as to what the ceiling might be in subs, especially in other parts of the world? >> well, i think if you go back to ten years ago when you looked at how analysts looked at netflix, one thing they're worried about is will this play overseas foundation capital, we've been investors since 199. -- 1999 it would get to 10% and then 1% in san jose and then 10% in san jose and then 1% across america. but back then the anl iflts wal concerned. they wondered if this would play overseas with piracy last year when we talked about this i indicated that the company was really pleased with where they were internationally and looks as if that momentum

continued. >> paul, how important is it for us to have maybe a sense of data that netflix isn't even sharing on the call? and what i mean by that is it seems like the global opportunity for localized content and having the best intelligence into what people really want to watch is going to be the coin of the realm over the next five to ten years is that really the value in netflix if they can invest more efficiently than all other content competitors? >> well, i think one thing that we noeted before is netflix is a extremely metrics driven management team. that is one thing we hold up to the other portfolio companies. look, be like netflix and be driven by metrics, understand the core markets well. when they went overseas, this wasn't a peanut butter approach. they had to do something different in britain they had to do something different in scandinavia when they went to vietnam and they had to take a different approach there. i think that because there is such a metrics-driven team in

how they make decisions, it's not an motional thing. it's how what can preprovide consumers that gets the maximum penetration in each of the markets? >> paul, i realize that to use netflix's own words it was a beautiful q4 but one metrics that wasn't so pretty is the expectation that we're going to have negative cash flows, $3 billion to $4 billion in 2018. how much should investors be paying attention to that >> well, if we go back in time over how they viewed netflix for years and years and years, it was this kind of mentality that just said, you know, i watch the rest of the management team say, look, you don't understand the size of market opportunity we have here. you don't understand the scale of the market opportunity. i think when i look at something like a temporary aberration in financial metrics like negative cash flow for a certain time period where i happen to be, at least for me, i'm not terribly concerned about that i'll give you a different set of anecdotes to indicate how pervasive netflix has become

i went to a dinner party in the silicon valley with folks representing all sorts of different industries in real estate and pr and tech and consulting and things like that. and i would say half of the dinner party conversation was the shows on netflix and then there was a followup e-mail where everybody compared notes on, look, i'm watching "the crown," i'm wauching thitching . if i take it in a different direction, not a 50-something crowd like my crowd, but i started to watch an amazing show "the end of the f'ing world" which is taking netflix by storm right now. i had an inside contact in netflix said you startwatch being the show, your kids are going to think you're really cool my 17-year-old and 16-year-old are like i can't believe you're watching the show. everybody in my age is watching t "the end of the f'ing world. >> that's a good endorsement walter isaac son is the ceo of the aspen institute. you've been listening. a big part of the push from

netflix's rivals, walter, has been the value of human curation, hbo and the last couple of weeks talking about themselves as sort of the parent that actually goes to the kids' soccer games and the kids, they mean the content creators that they -- whose product they zr t distribute is the metrics more powerful >> the main thing that netflix is winning on is it has awesome must have content. it's not just reid hastings who does a metrics driven company and totally focused and knows how to stay ahead of disruption, it it's ted serindos that has magic fingers with his entire team to be producing shows that everybody needs. and it's quite welcome in this day and age to say if you make really good content, if you make a really good product, you're going to win >> guys, we're going to move on

to another topic they're plans to go public, take a listen >> markets hold ceos and teams accountable. i think withuber, this is a company that has absolutely been held accountable and to some extent i think uber suffers from all of the negatives of a public company. the world is fascinated with everything that we do. >> right >> and we don't get any benefits of being public. so i think let's step up to the plate. this is a big scale company. it's an important brand all across the world and we're going to step up and we're going to be a public company that our employees can be proud of. >> also heard from sales forces mark benioff who slammed some silicon valley companies saying the trust must come before growth as a priority >> the world of our connected

products, for all the things that i think actually were just discussed about it in the world of the new connected products, in the fourth and the revolution, in this multistake holder dialogue we have here at davos, trust has to be your highest value in your company and if it's not, something bad is going to happen to you. >> we're going to hear more from benioff. myrrh dock says he wants facebook and going toogle to pa news monopolization. i wonder if you detect any threats coming out of davos this week >> yeah, the main word is trust. whether you're getting into an uber, whether you're sharing your data, whether you're using amazon, echo and saying hello alexa and shopping, you want to be able to trust all of the

data and that's true of news sources as well. i think what rupert murdoch said is absolutely right. if facebook has been foundering around trying to figure out how do we determine which content and try to pick valid news and, you know, they can't really do it but what would really save good journalism, the left and right, is for places like facebook to have to make licensing deals with really large and small and big and little content providers that they trust and that their users trust whether it's fox news or cnbc or msnbc or "the wall street journal" or "the washington post" and say whether we provide that news on facebook, just as in every other content realm, the person who produces the content will get a little bit of the revenue. and at the moment, google and

facebook took 80% of the ad revenue. that's not enough to support journalism >> but, paul, i just don't see that happening when news organizations, perhaps the lack of discipline spent two decades telling the public that news is free now they think facebook is going to pay for it just because they've got billions of dollars. what would it take for you to invest in news content and not just netflix type premium content? what kind of market dynamics do you have to see shift? >> carl, you're on the right path there i think rupert murdoch is off base i think he's really fighting yesterday's war. facebook's not competing as much with his news organization or having to worry about whether they're going to have content from there facebook is going to worry about other alternatives, social sites like a read it or other sites that are completely unfeddered and that this generation of people are paying attention to so i think facebook has a

different set of actors that they end up having to deal with and think about. on the content side, i think what we're seeing or some realin' owe vative models. there is one today that i'm sure you're familiar with, that you might be a subscriber to, i am, the athletic what they've done is gone and figured out that there are these amazing sports writers out there. they're doing written content long form written content, not just little snipits of video and what everybody else is trying to do and capturing the top six or seven or eight sports journalists in all the local markets covering hockey, baseball, football, and they're making people pay for it there is no free option. it's not like just get to do this stuff you have to join that company is doing really well it's growing rapidly i think you're going to begin to see some of the models emerge in places where there is content that people really are willing to pay for that region between where people are willing to pay the content is going to continue >> that is a fascinating way in

which sports news is being changed. finally, sorkin brought us news today. elon musk is going to stay at the company the next decade but the pay is tied completely to foremanance. he will receive into guaranteed comp unless they reach some very ambitious goal, namely, a market cap of $650 billion over the next ten years the valuation is about $50 billion. he's moving $50 billion traunchs would you accept this package, paul >> that's bold i think if you're saying 50 today and 150 tomorrow, i think i'd take that bet. you know, elon musk is just a black swan wrapped around a unicorn. you know, he is a one of a kind global entrepreneur. we're luck dwry to have him here create the disruption he's doing in the markets if he believes he can create that kind of value, then he should really benefit from that

disproportionately of course, the stake holders will have a fantastic ride along the way. >> walter, i got to say, i'm us from frustrated out of this rhetoric from elon musk. he keeps setting unrealistic targets that he's probably not going to hit and then figuring out ways to win anyway the guy owns 20% of tesla stock already which is already very highly valued. one might argue he's been paid enough for the next five or ten years anyway if he were to leave tesla imagine the hit he would take to his net worth. in a way, he should be paying to stay there i'm being a little bit -- i'm exaggerating bat exaggerating a bit, walter >> you're on the right track which we said earlier, this is a one of a kind person this is not something you can say scales across all compensation packages. it's easy for ee lon mus to being do this. he's -- elon musk to do this, he

has $20 billion. i think it's motivational. it takes a page out of the steve jobs playbook when he came back to apple, as you remember, in the late 1990s for a second round at apple he said i'm going to do it as a dollar a year. and, you know -- >> after cashing in stock options. >> not for him but for some in the company. you know, as you say, people find ways to gain the system but i don't think -- this is when you have one of a kind meaning a steve jobs or an elon musk, maybe some day a jeff bezos. >> i think that's fair to say already for sure we covered a lot of ground thanks for kicking the hour off as always. walter and paul, great to see you guys appreciate it. >> thank you still ahead, we're going to take you back to davos and the world economic forum marc benioff is going to join us the dow up is 13 on a down side reversal for j & j which we're

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in news from davos, we caught up with the ceo of sadio aramco take a listen. >> hey, jon, i'm live right here at the world economic forum in davos. i got to sit down with the ceo who is on track to go public

this year, we think. i'll get to that in a second, in what could be the biggest ipo ever here's what he had to say about it >> the ipo that we're working on, the transaction part of the ipo in terms of readiness, we're ready as we always say and the company by the second half 2018 already ready. the transaction to execute, it is all depending on the shareholders' decisions. we need to coordinate with the other markets when the decision is made. so from our side as a company, we're ready by the second half of this year and the rest is on the shareholder at hand. >> i want to parse that for this audience he actually said something very interesting there. you really have to go back and look at a tape of an interview i did with him in saudi arabia in october. he just said, and back then, and so far people have been reporting that they will actually, in fact, do this ipo in the back half of 2018

that's what was said then. what he said just now was that the company is ready but then if you noticed he said that there's -- it depends on what the shareholder says that is saudi, the government. that is mbs. he did indicate that they're necessarily ready. so it is possible just reading between the lines that this ipo could be delayed i'm not a con tending this is delayed forever. maybe we're talking about a couple of months but there is a difference going on in the larger conversation about what happens to saudi arabia and the dependence on oil and at what this ipo represents, there will be a lot of eyes parsing the words of that gentleman you just watched we'll have a lot more from this interview on cnbc tomorrow on "squawk box. want to kick it back to you in the meantime >> great thank you, andrew ross sorkin. speaking of davos, here is bridge water associates earlier this morning

>> i'm not worried about an immediate down turn. i would say that if we were to look two years forward, okay, probably right before the next presidential election, there is a good chance that you will have a down turn. and if you have a down turn for that segment, i'm worried about how we will be with each other in that element of cohesiveness. >> and joining us now is nundini crushmon and scott clemens thanks for joining us today. scott, i will start with you is dalio right are we looking at a down turn? >> the primary driver of this economy is personal consumption so i don't think so. when you look at the strength of the housing market and layer a couple of tax reform benefits on top of that, there is still fuel in the tank for the consumer that is 70% of gdp no near term fracture. >> and what is your take on this especially given the fact that he also said a little change in

interest rates could trigger bear market especially if that tightening is more than the street expected right now. >> i think it's a fair concern we are a bit more optimistic at the cycle has a bit more to give the big question is do you -- we shift from that very rightly pointed out consumption led recovery to something more that do businesses invest and get more productivity out of their workers? if that does happen, if the tax reforms do help companies have more capital to work with, they put in to some cap ex-and get more out of workers in the global economy that, could push out our recession or down turn forecast to maybe 3 to five years from now rather than the more little bit nervous two years that wear hearing more on the market these days. >> and just in terms of the risk profile market right now, one of the other big pieces of news is this idea of whether we're kicking off a trade war. we have nafta negotiations and the new tariffs slapped on solar and washing machines is this a risk to the market

>> i think it's a flag run up the flagpole these are such narrow tariffs. this isn't steel this isn't aluminum. these aren't economically wide tariffs that hit a broad swath of the economy i think it is an attempt on the part of the white house to see the reaction of our trading partners and gauge future trade negotiations >> given the fact that it is sort of -- there is so much really positive data out there in the marketplace, i mean, what do you see as the potentially biggest risk to the market right now? >> i think it's very difficult to find pockets of weakness when we look at purchasing managers indices, gdp numbers, consumer confidence everything is ticking upwards on a steady clip. i think the real issue is if companies start to really feel the pressure of higher wages in the u.s. that could make corporate profits really a lot harder to come by. the thing is we haven't seen wage growth in the u.s. increase in a way that would cause inflation to those companies that the key area we're watching in the u.s. economy is wages and

inflation and how much faster those rise if they even do rise this year. and then more broadly speaking, if europe we're keeping an eye on the italian election. it's very complicated system now going to polls in march and italy. the reason we watch italy closely is there is a lot of anti-euro sent bubbling around in the italian populous f that comes to fruition, there could be some testing of the italy's membership in the european union. that is our big risk >> so where do you put your money right now? >> we are very pro risk. we like a lot of the equity markets around the world the u.s. mid aej large cap stocks we like europe em for the long term play. the area where we're not liking is government bonds. the big risk of inflation and rising interest rates will cause duration sensitive assets like government bonds to suffer this year we could put a little bit more money in credit. really, we're looking at equities as a way to gain returns in 2018. >> and we have to wrap

where do you put money right now? >> still overweight equities and at the margin, favor international equities versus u.s. equities at the margin. >> great thank you both for joining us. >> and as we head to break, taking a look at shares of twitter. sliding a little more than 1.5% on news that chief operating officer anthony noto is leaving the company to become the ceo of sofi more "squawk alley" straight ahead. directv has been rated number one in customer satisfaction over cable for 17 years running. but some people still like cable. just like some people like pre-shaken sodas. having their seat kicked on an airplane. being rammed by a shopping cart. sitting in gum. and walking into a glass door. but for everyone else, there's directv. for #1 rated customer satisfaction over cable, switch to directv and get a $200 reward card. call 1.800.directv

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coming up next, we're live in davos, switzerland, the ceo of salesforce, marc benioff is going to join us at fidelity, trades are now just $4.95.

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good morning, everyone here is your update at this hour the justice department confirming that attorney general jeff sessions was interviewed for hours last week in robert muller's russia investigation that interview came as mueller probes whether president trump's actions in office constituted obstruction of justice vice president pence joining israeli prime minister netanyahu for a tour of the holocaust memorial in jerusalem. pence writing an inscription in the guest book and participating in a ceremony at the hall of remembrance. palestinians calling for a general strike across the west bank and jerusalem it comes a day after vice president pence said the u.s. embassy in israel will move to

jerusalem by the end of 2019 and a new indepth report is shedding light on the health effects of e-cigarettes. the national academy of sciences finding that while e-cigarettes are not without health issues, they contain fewer toxins than regular cigarettes but there is strong evidence that its use may increase the risk of smoking among youth. that is the news update this hour back downtown to "squawk alley." carl, i'll send it back to you >> all right sue, thank you very much let's get over to seema mody who is here at post nine with the european close >> a mixed session for europe. the broader market hits the highest levels since 2015. in germany, the dax is at a record high on this relentless string of strong data. this time german economic sentiment rising better than expected but check out the moving currencies that is getting a lot of attention. the uk pound hitting 140 that is the first time since the immediate aftermath of the 2016

brexit vote. not only is it the weakness in the dollar playing a role, there is optimism for the uk to exit from the eu. truchl trump expected to meet the prime minister in davos. regulators say 20 th century fox is going to take over sky. the regulators added they're open to possible remedies including a spinoff of sky's news channel sky is moving higher today by around 2%. and a couple of standout stocks in europe. easy jet posting upbeat first quarter sales and says the current quarter is strong and then there is french retail giant carrefour. they plan to cut jobs, increase investment in e-commerce china's ten sent announcing a partner ship with carrefour to compete with the traditional retail space back to you. >> seema, thank you very much for that watching shares of apple today. the company announcing release dates for that delayed home pod.

preorders start this friday. the unit begins shipping on february 9 compared to the competition, looking at a four year lag versus amazon which first launched the echo smart speaker on november 6 of 2014. this is going to be interesting as the race has a new entranlt >> apple has to worry about putting out a phone every year which amazon is not doing. a phone that makes a the love money. interesting to me apple first talked about the home pod back last summer. said they were going to deliver it for the holidays. finally delivering it beginning of february. still two key features of home pod that are not going to be in it the stereo where you can put two together and deliver a stereo sound. and other features that allow them to work around the house together it's remarkable to me that after nearly nine months apple's not able to deliver a feature that they talked about at the previous developer conference. i'm not sure what the cause of that is. of course, its not any hit to

apple's profitability. but notable. >> they say the functions coming later in the year. right? >> well, yeah. >> the point about this data is taken. the home pod is coming later in the next year than we expected similar to i guess what we saw with the air pods. >> yeah. >> and we've seen this from them before in general. their production delays and sometimes they, too, underdeliver in terms of the product that come out and then you see sort of this push forward and all of a sudden all the information and all the demand for it comes later on >> well, i don't know if they underdeliver in terms of the product that comes out >> not the product that mz cop out but in terms of the time line whether it's coming out. >> right i can't give elon musk all the heat for missing -- >> the model 3 is a little more complex than a home pod speaker. >> yes >> absolutely. >> yes >> stakes are higher >> yes >> when "squawk alley" returns, marc benioff had harsh words for silicon valley leadership. he'll join us live to explain.

first, rick santelli, what's on your mind today? no rick. >> you know, i'm looking at some -- hello? i'm looking at some gdp from the previous quarters going back to the credit crisis. we have our first look at fourth quarter gdp this friday. let's take a walk down memory lane and see whawet have to strive for to break records all after the break. ies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade.

coming up, the analyst who says netflix's blow outquarterer

is a whole new ball game for that company we'll see how high he thinks kit go plus, the unusual options activity he found in two sectors outside of the united states and our calf the dl of the day, talking about many stocks. we'll see you at the top of the hour in 20 minutes or so >> looking forward to it, scott. thank you. legality's get the santelli exchange over at the cme this morning. hey, rick. >> good morning, carl. you know, a lot could be rileding on friday's first look at fourth quarter gdp. this isone of those numbers where every time you get it, of course, you're well a month through into the next quarter. so by very definition, considering the breldth and how hard it is to put together some of the statistics, it's already an old number when it's brand new and get three looks at it. but i also will urge many to contemplate that sometimes markets chew their tobacco twice, so to speak meaning that the notion of

stronger economic growth leads to certain type of investor behavior and when you get the numbers, sometimes you end up double dipping and kons traiti concentrating on that impact of the economy and getting more of a move out of the same data as the facts of the data become more clear now if we consider the fact that we're looking at potentially having three quarlters ters in of 3%, it hasn't happened exactly but it has happened since the credit crisis. i'll show you what i mean. if we look at the crisis post crisis and try to look at the best three quarters in a row, we actually did for three quarters have a pretty good run and that was q-1 of '15, q3 of '14. if you look at those amounts, 2%, 5.#2%, that three quarter average is 3.46% so that means in order for us to

overtake as the best three quarter run in a row, this number would have to be over 4.1% i'm not sure it's going to get there. but that will give you some gps. now many could argue that it was a little more variance, meaning we go from 5.2 to 2 up to 3 and this may indeed be much tighter. there is some statistical relevance that that is something better to strive for just to be fair, that's the three quarters in a row we need to be if we're going to start breaking spl recor breaking some records. another issue i want to focus on, they'll have a big effect on the long end of the treasury market and the global long end market which really has been rip van winkle and starting to wake up that is the break evens for inflation. you know, the five year break even is now hovering right around 2%. the ten year break even is around 205 not that they haven't been higher they actually have been higher but they were higher in a time before the fed was tightening like 2013. if we look at present day and

the fact that we've already had quite a nice run of tightening since the end of 2015, we need to take a fresh look if the numbers continue to stick at 2% or higher, compared with the kind of growth i expect to see, i can't imagine that the fed is going to take notice. "squawk alley" gang, back to you. >> great thank you, rick santelli at the cme. rick, i'm a little disappointed that you don't have the hand drawn charts today but good data. >> we'll have one tomorrow >> still ahead -- okay still ahead, bitcoin up slightly today. still down almost 20% this year. as investors weigh more regulatory concerns. listen to what ray dalio had to say about cryptocurrencies >> it's a bubble >> still a bubble? >> well, no, you know what bubbles are. they have their own particular dynamic. a perfectly good market can be in a bubble. dot-com bubble, we hint net companies and so on. they had a bubble and then a bust i don't trade up

dmoinlt how to value it. i believe in the block chain technology i think it's great but that notion of how to trade it and value it is not my expertise. i'll kp eemy mouth shut. that was a bubble. it looked like a bubble. you always pay your insurance on time. tap one little bumper, and up go your rates. what good is having insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $782 on home and auto insurance. call

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the 48th annual economic forum is in davos switzerland. andrew has a special guest hey, andrew. >> hey, carl we have mark benioff from sales force this morning

your morning, our evening. other evening. it's dark out and we're tired, right? >> it's chilly >> we don't know what day or night is >> we started early this morning when you did know where you were and we had a provocative conversation you made provocative comments about the tech world and silicon valley and really taking responsibility speak to that. >> i mean for us, it's a natural. when we started our business now almost 20 years ago, we put 1% of he can wilt, 1% of profit and 1% ofall our employees' time into a foundation. it was easy. we had no place. we had no time but the thing is it really set the culture. we had a purpose we knew we wanted to do something. they're going to build a product and build a company and that company is going to do something to improve the world that is something we also did. >> is there something

fundamentally broken now >> i think that you have two worlds one world is companies that are purpose driven and ceos that are purpose driven there is clarity on what is it you really want? what do you want to achieve? what is really important to you? you are focused on the funnel fundamental trust you have with your customers then you have a bifurcation where ceos are only focused on the product, that's when you -- >> it's interesting you say product and not profit because in most other industries, people talk about there's too much focus on the profit not the product >> well, it's both, right? you can do it all. that's one thing that sales force now has grown and been more successful. i think we have the proof point

that you can do both >> you also said something that got a lot of attention on the air and technology and the idea that washington is coming. >> i just think that we're -- the same industry as every other industry and you can see in financial services the government has involved consumer product goods, food, technology, the government is going to have to be involved >> you say they have to be should they be >> they managed to fend off the government in terms of regulation >> there some regulation but there probably will have to be more. you can see cases that are happening where you're going to want more regulation >> what are you talking about? >> you see the situation where elections are being manipulated by outside forces. that's probably an opportunity for the government to look at that >> okay. effectively, we're talking about facebook now how you would regulate a facebook

>> i think you do it exactly the same way you regulated the cigarette industry here's a product cigarettes they're addictive. you know, they're not good for you. maybe there is all kinds of different forces trying to get you to do certain things there's a the lolot of parallel >> is that how you feel about social media >> for the most part, yeah >> meaning, thinking about it as like a cigarette in that kind of addictive way? >> i think that for sure technology has addictive qualities that we have to address and that product designers are working to make the products more addictive and we need to reign that back as much as possible >> so responsibility of the technology companies or this conversation is now morphed into one about technology and children last week obviously jana went out against apple saying they needed to do more. where is the responsibility lie? >> nothing's more important than our children's health and

education. you know how i feel about that >> right >> i built two children's hospitals and pultitting tens o millions of dollars into our public schools and now you're in our zone i think that's where we should be spending all of our attention. we should be focused on are we getting our kids ready for this revolution that is happening it's the very thing we're talking about here >> but the relationship that kids, if you will, have with technology who is supposed to be the monitor of that? the technology companies -- >> the parents, number one >> right >> parents have to do their job. just like, you know, we talked about on your panel. and number two, if there's an unfair advantage or things that are out there that aren't -- not understood by parents, then the government's got to come forward and illuminate that. you can see that in the food industry with sugar. for a long time we didn't understand the kind of the issues with sugar. now we do. >> implications of the tax

reform plan on salesforce? how it is going to change your business >> i don't think it will have any tinld kind of material impa. the biggest thing is that there is a huge amount of exuberance with ceos around the tax plan c tax plan so that that kind of what i would call economic freight train is going to continue >> you're see that in your business you raised guidance four full-times for 2018. you want to raise it again while we're here >> i don't think that our ur is going to let me do that. >> in terms of using salesforce as a proxy for the rest of the economy. what are you seeing? the freight train is still on the track? >> i think so. it's an economic freight train every ceo is bullish one of the things about davos is it tends to be a measurement of where things are you and i were both here in 2010 and you can see when everybody

is walking around with their head down. no one is walking around with their head down. people are excited and feeling good about the world >> final question, president trump is going to be here on friday what do you want to hear him say? >> i want him to bring everybody together in a positive way this is really important i think it's really important that it's not about isolation, but it's about integration and that he does very much what president xi did last year, which is is a major unifying speech that shows the united states' role in the world, setting values and has a clear north star on where we're going. >> what odds are you putting on him giving that speech that you just laid out? >> i'm not a betting man this is davos, not vegas >> mark, thank you it is late >> we have had a long day. >> on that note, we'll send it back to you guys in new york

>> i wish we could let you guys go another five minutes. great stuff. as we go to break, check out tomorrow's davos line up jeremy diamond, larry fink, w ds quincy, and a lot more doisown 17 back after a short break your smile ah, but i may as well try and catch the wind♪ our mission is to make off-shore wind one of the principle new sources of energy. not every bank is willing to get involved in a "first of its kind" project. citi saw the promise of clean energy. we're polluting the air less. businesses and homes can rely on a steady source of power. this will be the first of many off-shore wind farms in the u.s.

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welcome back bitcoin having a good morning up above 11,000 but it's down about 20% this year this as south korea announced its banning unanimous bank accounts being used to buy and sell crypto currencies a report about the risks of investing in crypto currency saying 10% of funds raised through initial offerings are lost or stolen in hack attacks we're join by andy bromberg. thank you for being with us. coinless helps companies get to an initial coin offering it helps distribute the marking materials so potential investors know what they are getting into. my concern is i'm not sure there are enough actual coins out

there that aren't scams that are worth investing in what gives you the confidence that there are >> we just see them. so i certainly agree there are a lot of low quality icos. the vast majority are scams or under. developed and people seeking to raise money quickly. we conduct these processes on the toke bs we list on the platform we see there are toke bs out there that have high quality teams that have already built products that have shown a history of building products and running in a legal manner. so we are seeing more and more of those icos in their modern form have only existed for 9 to 12 months. so people that started the process back 12 months ago building in the right way are starting to do it now and that trend is going to continue into 2018 >> i want to dig into this further. the commissioner said market professionals need to act responsibly and hold themselves to high standards to be blunt,

from what i have seen particularly inthe initial coi offering space they can do better how are you doing better how can better be done what does that mean from a regulatory stand point >> we agree that most of these are low quality. they are not doing proper disclosures and going through the processes they need to with other regulatory agencies. people need to get good legal counsel that understands what they are doing, knows when securities need to be registered with the s.e.c., go through processes and what they need to do in advance to run a sale. more and more are doing this and getting expertise that we need but that dun mean the low quality ones will disappear. >> how long did they last? how long can they swim along this shark and not get washed out by people running away or regulatory as well >> we'll see in 2018 the regulatory agencies take more direct action. we have seen an increase in the numb of statements from commissioner clayton

we'll see many of these will run into legal actions and there's already been a few enforcements. >> will people go to jail? >> i think they will they are being accused of securities fraud violations and those can lead to jail time. >> how is this different from penny stocks from stocks that are low volume with high risk of being manipulated. we have seen investors over the years particularly in previous generations getting taken advantage of despite the knowledge that they thought they had. >> e we compare it to the stock asset class as a whole there's certainly a large number of penny stocks that are highly risky and many will fall into that category. that doesn't procollude there being high quality projects with companies that have real revenue and driving forces behind these projects we say many of these will fall into the category but we're looking for the ones that are doing those and what the blue chip stocks are going to be. >> ten years from now, what do

you see this market looking like who do you see in terms of the coins and platforms actually continuing to exist and evolve >> we certainly think we're going to see a mix we have seen this over the past few weeks of new companies that start as toke b companies and build new protocols to underlie value on the internet. whether they are transacting in files or other there will be new companies. whether that's existing stock, we'll see tokens to represent those in the new protocols being created. >> it's a brave new world. a lot of interest around this. and you guys are certainly providing a lot of information at least about these icos. thank you for being with us. dow and s&p having the best january since '89. we're going to watch for ual tonight. tomorrow, though, ge, a day after they cut it to neutral and

will see a guide down. and utx will be part of our morning tomorrow >> and general electric up today ahead of the numbers the other one is travelers seeing a pretty big move for that stock up 4% >> it's been supporting the dough all day. >> let's get over to the judge back at hq ♪ welcome to the halftime report top trade this hour, netflix surging on earnings. traders here to debate what to do with your money in that stock. with us for the hour is is joe turn, stephanie link and josh brown. we begin with that netflix blowout. it could be a gauge changing quarter for the company. netflix crossing $100 billion in market cap for the first time. outlook was stronger than expected no n