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tv   Squawk Alley  CNBC  September 18, 2018 11:00am-12:00pm EDT

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good morning, it is 8:00 a.m. at apple headquarters in cupertino and 11:00 a.m. on wall street. "squawk alley" is live ♪ ♪ ♪ everybody's hands go up ♪ and they stay there ♪ put your hands in the air good tuesday morning welcome to "squawk alley." i am carl quintanilla. morgan brennan back at post 9
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and jon fortt. dow up 105, despite escalating u.s., china trade tensions chinese officials retaliating after the president announces tariffs on billions of imported goods. quite a day. >> i am calling it the tug of war on tariffs here is where we stand china announced it is moving forward with tariffs on $60 billion of u.s. goods, the rate will range from 5 to 10% and it could go higher chinese tariffs go into effect september 24th that's the same day that the u.s. will begin imposing duties on $200 billion of chinese goods. initial rate for u.s. tariffs is 10%. it will jump to 25% on january 1. president trump tweeted this morning china has been taking advantage of the u.s. for years, and promised great and fast economic retaliation if china targets american farmers, ranchers, manufacturers.
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business groups warned tariffs whether from china or the u.s. will hurt their bottom line, and ultimately result in higher prices for consumers wilbur ross, commerce secretary, argued earlier today households won't notice >> because it is spread over thousands and thousands of products, nobody is going to actually notice it at the end of the day. >> guys, ross also said the goal here isn't permanent tariffs but resumption of talks with beijing. however, those appear to be on hold for now back to you. >> thank you very much for that. obviously the story of the day two top business leaders taking on decidedly different tones on the tariff threat at least for tech listen to alibaba's chief, jack ma, and then tim cook. >> this won't last long if you want at shot at solution there's no shot at solution. china u.s. and trade, last 30, 40 years, becomes such a big
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size there's no problem it is impossible there is big problems, it is unnatural. >> i'm optimistic because trade is one of those things where it is not a zero sum gain you and i can trade something and we can both win. so i am optimistic the two countries will sort this out and life will go on. >> for more, we are joined by vc markets head of strategy, and mike santoli good morning lori, we talked about your negative view on tech. and the nasdaq is on pace for the first monthly decline since march. is this going your way >> yeah. we described it to investors recently as we are walking across a pond in the winter, it is frozen and cracks are going to emerge. a lot of people think they're
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making it across the pond and make it. but there are cracks i am hearing it loudly in my ears. >> i can't get into specific names, semis has gotten caught up in trade issues and other questions on fundamental demand and whether or not that's eroding. that was a seg mement that had value. you started to see them rotate out. >> with all of the trade headlines, escalation in tit for tat tariffs. dow is up by names that have exposure to china, like nike, intel, caterpillar >> i don't think you can say it is priced in entirely, but it tells you when the market has lived with a particular threat for six or eight months, we worried about it, talked about it, and parts of the market were punished for it, it isn't much surprise we were down yesterday, up a
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half percent today i think that one of the mechanisms it was going to hurt if it was going to was fears of severe trying to slow down, disorderly chaos in dollar markets. none of that is going on now you don't have that channel from trade fears to today's stock market the way you might otherwise. >> i would say mike hit the nail on the head. it's probably mostly priced into industrials, not fully now it is seeping into tech. think back to second quarter tech rallied hard, it was supposed to be the safe haven for trade fears. nobody is saying that any more >> hard to know what tech means any more we are separating things to different categories oracle's report last night that didn't impress a lot of analysts, then adobe's report last week that did even just within software, enterprise software, things seem to be going that direction how do you parse concerns in
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semis versus some software companies doing well. >> i would say we're rigorous in our process. when we look through new tech sector, moved out social media, soft software and services, it is a good signal to get out you've started to see earnings momentum it is starting to slip that's why some messages are mixed. not everybody is missing, some are starting to. >> in terms of global markets, most overweight u.s. in three years, and 700 billion in aggregate losses in asia when does overseas become a bargain, are people gaming that out? >> once you get to a point people are no longer thinking the trade war has a huge down side risk, maybe you have more up side bounce in foreign markets. a lot of scenarios may go out. people say what happens in the past when you had wide
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divergences. if you look at the global portfolio of u.s. assets, u.s. stocks are quality but you pay for quality. they're expensive but safer. if the world seems safer place in general, it probably would work to relative benefit of overseas markets although i think my take away from global fund manager survey was there's defensene -- defensiveness. the chief risks cited, the largest was china trade war. second was the china slow down 60% of people saying the biggest risk is caught in this issue that tells me people are clenched ahead of it. >> more than dems taking the house or anything. >> it would seem >> to that point, given the fact that tech is the outperformer and led the market not just so far this year but recent years, if you don't put your money
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there, where do you suggest investors put money. >> we like financials, but still looks good on our metrics. where we are getting more defensive is the defensive sectors. took staples from under market weight our analysts are starting, they're not bullish on fundamentals but things are starting to get less bad performance is starting to stabilize. these are in line performers the last few months. >> mike, what do you make of oracle's move for buy back after earnings that are pretty good, but cloud momentum, not as hot as some were looking for safra catz said we think our stock is an unbelievable buy
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what signals for investors >> for a ceo to be aggressive buying back her own stock, that's a good one. seeing value there saying the stock trades, we think our prospects are better as opposed to we got repatriation of cash we don't know what to do with it let's do a buy back. maybe there's some of both in there. i think it is following familiar play books like cisco and other legacy tech companies that had more in the way of cash flow, accumulated cash from past businesses to try to grow faster growing pieces of their company. meantime, share the cash with shareholders i think it is a formula that worked for other companies >> before the end of the month, lori, we had reshuffling of s & p sectors, telecom, media, internet stocks. how disruptive could this be >> hard to determine on short term impacts there don't seem to be clear answers. longer term could be disruptive
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to some companies moving into the new communications sector. you look at etf flows, they're tremendous it is an important underpinning of support to the bull market in tech that few investors understand you take out social media companies, they move in with all of the telecom and media companies. i don't know if you tried to track those flows, they barely register on the chart. i was watching you last week when all of the media execs are in front of congress, i really doe don't see retail investors shoving money to etfs with that news flow. if they want to buy stocks, they can do it individually it is interesting to see if the money comes back to the space long term. i think it won't >> if people are skating to where the puck will be in advance of the change. >> right there's an etf already but i think it will flow wise balance out. i think just to take off on
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lori's point, it will leave three sectors out of 11 that effectively are dominated by what we think of as tech stocks. consumer discretion, amazon, and communications, facebook and alphabet and old tech is old tech >> it is spreading the risk around i would add we look at consumer discretionary with internet retail, and that's a different sector if you kick out the internet retail stocks >> good institution. coming up, the iphone reviews are in so is bigger really better aside from price i guess we get a firsthand look at apple's newest crop i moftsost valuable product next. alerts -- wouldn't you like one from the market when it might be time to buy or sell? with fidelity's real-time analytics,
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simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. the first look reviews are out for the apple iphones. in depth reviews are coming. most highlight premium price tags for the 10 s and max. here is tim cook this morning. >> you look at the phone priced over a thousand dollars, most people pay about $30 a month for it it is about a dollar a day and if you look at it, the phone has replaced your digital camera you don't have a separate one any more it replaced your video camera. it replaced your music player. it replaced all these different devices. it replaced your video player. so arguably the product is really important and we found that people want to
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have the most innovative product available and with that, it is not cheap to do that >> some people it is replace your social life what's that worth? we will find out if the phone justifies the cost joining us in post 9, two tech columnists that spent time with the new phones joanna, you wrote if goldilocks only had the chance to try the cold and the hot porridge, she may not know which one is right. >> imagine how different her life would have been she wouldn't have found that just right phone i think r may stand for right. it may be the just right phone for many people out there not only in terms of price tag and features question is with these, these are the best phones you can get from apple do you really need the best and spend that much money. tim cook made a good argument
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why we should spend a lot of money on our phones, they have become everything in our lives, the r i think is going to be pretty good. >> is the max too libig? >> i happen to like big phones, so i say no. to play off tim, we are watching video and doing so much here your eyes are fixed there, whether it is good or bad is a whole other segment. i personally like the big phone. it is great for watching movies or music video whatever you're doing. so i'm a fan of the big phone. >> i was going to say, you both came loaded. you both have examples here's my blingtastic 6s to compare. it is much bigger. >> it is big it is very big. >> the question is based on this design, is this something that's going to replace my laptop or
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ipad, am i going to be able to do more? >> the answer i think is no. you definitely get the bigger screen for movies, you can see more of websites, see more of your inbox, fundamentally you're not able to do more with this now, especially compared to the note from samsung, you can put apps side by side, watch a video and take notes, do things at the same time. apple doesn't have that built in they're pushing you toward the ipad if that's what you want. >> the other thing you have to remember, and you're right, the note does more, has the pen for people that want to be productive, you can use it now as remote control, i will still go to ipad for watching something that i am going to spend time on. >> it seems like the real differentiator are the oled screen and cameras on back if you don't care about oled
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versus lcd and like nice photos and don't have to have the most amazing, maybe you should wait on the r. >> battery life. might be a small thing, they're not like i need that extra hour, half hour, but what apple is saying on the website, claims are that the r will last longer on battery life. >> that's better for the cheaper phone. which people should not wait for the r and go for this in terms of screen and camera >> number one, people with big hands. it is great for people with big hands, you'll want that big one. if you're the person that wants the best of the best, you can get one of these you'll be happy, these are fabulous phones. i'm going to have one of these i need to have the best and greatest but i know a lot of people that do not need to have the best and the greatest iphone. maybe need the best and greatest other things, but not the iphone. >> and you need that big budget, too.
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let's not forget that. >> photography, talked about that, depth of field are we getting into niche areas? >> for a lolt t of people it is. takes splendid pictures, so did last year's, so does the note and many phones. i was pleased with the camera. i'm sure you were as well. but you'll be pleased with a lot of other cameras as well. >> for me the biggest improvement over the 10 camera was speed of launching the camera, speed of auto focus. that's coming from that computational photography, from the processor that they made a big deal about last week i do think that is a big deal. you may not totally feel it coming from the x. >> where the auto focus is a half second late and you got a fuzzy photo instead of a sharp one. >> the r is rolling out later, you haven't been able to review it, we focused on average selling prices, does this
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incentivize seam of higher tech phones versus the r? >> i think that argument has been made. that's why apple came out with these and is kind of making you wait a month on a monthly basis, i don't know that it makes a big deal you're talking at least $250 cheaper for the r as we talked about for a phone that's largely the same by the way, bigger screen, 6.1 inches yes, not the fancy oled, but it will be good enough for a lot of people. >> some of the analysts we had on last week said the price for r was lower than they thought and the theory was apple is trying to migrate more people into things later on like apple pay. does that make sense to you? make it sweeter to be part of the ecosystem. >> it is all about the ecosystem, and yes once you buy in, it is hard to leave. >> that's what we are seeing on bigger screens, right? the r is actually the more mainstream phone, replaces what
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most would have bought as the 8 or 7 but has a larger screen than those they have shown, proof is there, you have a bigger screen, you use that phone more. you just do. use it more for services apple is betting big on services the more you use music, watch itunes, in the tv realm. >> apple has gotten us to talk about a $750 phone as the cheaper phone. then buy the $750 phone. most aren't going to get 64 gigs, it will be 850 >> budget phone. >> great insights. >> can't wait to get my hands on those. staying with devices, cnbc is reporting amazon is looking to disrupt the home appliance industry with the help of alexa. adetro >> jeff bezos wants customers to use alexa wherever they are. now it looks like the voice
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assistant could move into your kitchen and car. cnbc learned that amazon has plans to release 8 new alexa power devices, including a micro wave oven, amplifier, receiver, subwoofer, and in car gadget according to sources some will have alexa built in, others require an echo device. the products signal amazon's move into home appliances going head to head with companies like sonos and ge, even though both of those have their own alexa link devices ge has a microwave connected to alexa. garmin has one in the car, and audi is getting alexa integration for the new suv. they've also shown interest in the connected home space through deals. earlier, amazon acquired smart
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doorbell maker ring and partnered to include two echo speakers in certain new homes, provide visits by amazon technicians. the company's efforts come as competition is heating up in the smart speaker category amazon dominated the market early. one research firm reports google home beat amazon echo shipments in q 2 shipments this year, second quarter in a row. meantime, industry analysts say it is notable because it shows potential for what started as a smart speaker platform and turned it into a different way of interacting with devices we use every day. stay tuned >> there seem to be more and more of them thank you for that report. when we come back, audi takes on tesla a closer look at the all electric car and speaking of elon musk, spacex announced the first billionaire space tourist for a trip around the moon a japanese billionaire put down a deposit.
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welcome back audi is taking on tesla, unveili unveiling their first electric car. phil lebeau has more. >> reporter: this is the first all electric car, coming out, it is an suv, coming into the market second quarter next year. they unveiled it last night. a very cool event they said this is audi electric. do not expect your standard vehicle, standard suv. we built a lot of features that we think make it a game changer. they haven't given a full range from the epa, most believe it is well over 200 miles, and delivery starts spring next year look at the premium luxury electric vehicle market in terms
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of sales worldwide over 700,000 by 2025, over 8 million are expected to be sold because of increased competition, more models like this enter the market and the president of audi of america believes this is the right vehicle at the right time for audi >> frankly to me it is simple. launch a cool car. that's what they want in the luxury market. this is a super cool car i'm convinced, we're going to see the growth there >> that growth is expected to cut into dominance of tesla. you look at shares of volkswagon versus tesla keep in mind that tesla last year, more than 90% of electric vehicles, luxury electric vehicles were tesla models they have the market to themselves by 2021, tesla's dominance of the luxury electric vehicle market in this country is expected to drop down to 63% it will still be a strong market share. as you seemodels like this or
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jaguar, bmw, mercedes, luxury players rolling out electric vehicles, it is expected to cut into tesla's lead. >> wow space is filling in quickly, phil thank you very much. great story. phil lebeau. the european close in about 60 seconds. >> holding on to gains mostly green across the board, despite escalating trade tensions between the u.s. and china. sectors were mixed with miners and then retail and health care under pressure during today's trading. some down 13% after the fashion retailer lowered the sales guidance for the second time in two months the group said summer heat wave delayed switch to the winter season, will impact full year profits. automakers dominate. ferrari unveiling a plan to double profits, expand product
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range by 2022, including unveiling its first vehicle to have beaten that luxury vehicle sport utility market also pledging 60% of models use hybrid technology by 2022. ferrari shares jump more than 3% in the wake of those announcements. and shares of a dutch navigational company, plunging on news of google's partnership with renault, mitsubishi use tech companies android operations starting in 2021. posting the worst day since 2011 back to you. >> big drop to the down size let's get to sue herera for a news update. >> good morning, morgan and everyone here's what's happening at this hour visa and master card say they and several banks will pay
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$6.2 billion to settle a long running lawsuit brought by merchants over fees. they set aside money to make the payments. macron unveiling plans to make france's health care system considered one of the best and sufficient and sustainable for the next 15 years. announced organizational changes at hospitals and better use of digital technology to provide health care across the country. at least 21 people were killed when a bus overturned following a collision with a tanker in central iran 20 more were injured the bus was transferring passengers from tehran to a city some 620 miles away. and a new study from mayo clinic found 45% of resident doctors experienced at least one major symptom of burnout which could possibly lead them to making mistakes. those in urology, neurology, general surgery and emergency medicine were at the highest risk you are up to date
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that's the news update jon, back downtown to you. >> thank you, sue. coming up after the break, numbers so silicon valley has a gender problem and not just the wage gap details on the report straight ahead. flooding from hurricane florence wreaking havoc on the carolinas. an update from the ground. "squawk alley" will be right back
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hurricane florence is mocvig on, but the threat remains as flood waters are rising. contessa brewer joins us from fayetteville, north carolina >> reporter: i want to give you a sense of what's happening. you can see the railroad trestle that crosses the bridge and the massive pile of debris that's come down, slammed into that trestle. look at how high the water is. you can get a sense if you go off to the left, look at the light pole and there you can see, they're trying to move traffic across the bridge, people are stopping because the water is so high that's the commotion you're hearing. you can see the water on the light pole flood stage is 35 feet last observed height, 59.75 feet it will increase at 61 feet overnight. let me show you a picture from 2016 this is what the trestle looks like when rivers are at normal
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levels then video from two days ago this was as the river was beginning to rise and video from today. we saw csx checking out rail lines, back out here live. you can see the debris pile is getting bigger, water keeps rising we have seen it happening. the evacuations are still existing for the surrounding area, we won't see the crest until overnight. >> given the fact the river hasn't crested yet, are folks able to evacuate and get out of harm's way or are they hunkering down and bearing for the worst in the coming hours? >> reporter: i talked to the police chief and the mayor they said they have been going door to door, urging people not to be in their homes in the surrounding area as you can tell, another couple of feet higher, it overflows its banks. already there's a creek that merged with cape fear river. the problem is look at this.
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show the lines of traffic. this is a major thoroughfare through fayetteville they need bridges to remain open to move people and resources to other areas. they're going to be watching to see whether this overtops the bridge they would close the bridge down in that case meantime, until they see a danger, they're keeping it open, trying to keep traffic moving as people go by this is a historic site to see this water not a record they got higher than this in hurricane matthew. >> thank you contessa brewer with great reporting. hope you continue to stay safe as the u.s. china trade war escalates, business leaders speak up fred smith addressed concerns over trade fedex is considered a bellwether of u.s. and global economy on the earnings call last night take a listen. >> the history is very clear that countries that pursue the
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most open markets are the ones that prosper most and whose citizens' income increases most. mercantilism doesn't work. there's example after example of it people that try to manage economies, particularly worldwide economies from a centrally managed perspective cannot do so they're always parochial interests, whether it is dairy farmers in canada or the chicken tax in the united states which protects our pickup trucks >> when fred smith talks about trade, many folks listen he is considered one of the foremost experts on modern trade and the dynamics there in large part because he did found this major logistics and transition company. >> and also the ph.d. helps. >> absolutely. fedex, the other thing they said
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in terms of their own impact on the u.s., china trade tensions, revenue on china u.s., 2% of total revenues, tariffs are only a small portion. and tariffs account for less than 10% of fedex volume new tariffs on the $200 billion of imports may impact about a quarter of that 2% overall revenue figure they're watching it closely. >> context is key. mercantilism versus open markets. in the past you would assume china has the managed economy. which is he talking about. trump administration argues they're putting on tariff pressure to open up markets in the long term. is it a matter of how long it takes? >> i think that's sort of a key question we heard from other executives on the show today about that time frame and the means to get to the ends. the other thing, fedex shares are down they had mixed earnings picture,
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earnings missed because they have been implementing faster than expected employee compensation tied to tax reform. but revenues are continuing to grow even as they worry about trade. coming up, post mates, a union -- unicorn rick, what are you watching? >> 303 yield on treasuries on ten year, up 130 points on the dow. it certainly seems as though investors are being agnostic about the problems and issues with tariffs ea authaafr e t teth brk.
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i am scott walker. here's what's coming up top of the hour stocks are up, despite escalating trade war the question is for how long we'll debate what this means to your money. the retailer that looks primed for a takeoff our call of the day. and the race to zero what some brokers are doing to get your business and what the real catch is all at noon. see you in about 15. >> all right, scott, thanks. the gender gap continues in silicon valley they found a gap between women and men at companies julia boorstin breaks it down as part of the closing the gap series good morning, julia. >> reporter: good morning to you, carl. women own just a fraction of the equity of startups
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finding female employees own just 47 cents of startup equity. that gap between men and women on the cap table which allocates shares in private companies is considered a key piece of inequity in silicon valley starsup equity enables investment in the next generation of companies and fuels the next generation of entrepreneurs. women comprise 35%, but hold only 20% equity. the gap is bigger among founders women 13% of founders, hold only 6% of founder equity, according to a study by a tech company that manages cap tables that analyzes data of 180,000 employees, over 6,000 companies, 15,000 founders. this gap in cap table representation is actually larger than the pay gap. pew reports women earned 82% of
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what men ernarned. a group of female investors are working with venture capital investors to explain why the gap between men and whimpomen perpet that, and value in the diversity of ideas when women are brought into young startups, given a piece of equity. back to you. >> a story that's not going to end anytime soon thank you very much for that. let's get to the cme and rick santelli, get the santelli exchange rick >> thank you, carl i tell you, watching the way markets are trading and reading the on-going issues regarding tariffs certainly isn't easy to cypher through markets for the most part remain agnostic they look towards more of a solution ultimately. but just because the market is up doesn't mean this is going to end well but the converse is true as well many things i hear, whether something like this never been
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done, we never challenged china before, all economists agree this is the wrong way to go, that doesn't mean it is going to fail with regard to how this end up, truly nobody knows yet but markets and investors are certainly playing the long game. and that long game is a phrase i heard many times in the last several days on our. we heard it from a ge employee, ex-employee that wrote a book. she said china played the long game with many things. my guest today talked about the notion given the way the government works, how often we have elections, it is much more difficult. this administration is trying to challenge it at a time the economy is strong. is it going to work out? i can't tell you but it is confusing. jack ma, ali baba, never have i known somebody with so many fans across the globe on this trading floor, he is an
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it tech genius but i remember not long ago in summer of '14 and carried through another couple of years, when there was market turmoil in china, beijing imposed restrictions on media reporting of the stock market. the only reason i bring it up is it is not that easy. what china wants to do and how they deal with it, what this administration does and how many plates they have up in the air on trade at the same time is a distraction that the markets seem to be living with but also remember that ultimately the emerging market and much of asia were thrown into a bit of a tail spin. will the solution give us the other side of the market many believe it is true. carl, back to you. >> rick, thank you very much for that. we are watching price action
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in tesla on bloomberg headlines. for that, we go to dominic chu. >> we are marginally lower for tesla shares we were down 4.5% on the heels of bloomberg headlines that said tesla is reportedly according to bloomberg news facing a u.s. criminal probe over elon musk statements over twitter about possibly taking the company private, the notorious funding secured tweet. we reached out to tesla for comment, haven't heard back. we'll get back when we do. we reached out to the justice department as well, jon, for comments we'll get you all of those as we see them on the news desk. back to you. >> story continues to unfold thank you. "squawk alley" will be right back after this. [ upbeat music ]
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kevin brady, the man leading the charge on tax reform 2.0 your money on the line on-demand delivery announcing a $300 million funding round valuing the company at just over a billion dollars granting it that legendary unicorn status joining us in a broadcast exclusive is co-founder and ceo. good to have you back. congratulations. tyinger? >> tiger, yeah >> what brought them in? >> i think they like to pick winne winners. >> be more specific. how long has this been in the
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works? >> it happened quick tiger led one of the previous rounds with a small amount and a couple weeks ago i was approached and said i'm looking at the fundamentals of the company. i think it's time to accelerate the growth we have worked on our drought efficiency and then the whole thing happened extremely fast. >> he's joining the board? >> he's joining the board. >> how does that change things >> i don't think it will change a lot. he's very familiar with the company and i think we'll continue to do what we do best, execute in a competitive space >> we talked a couple months ago and door dash has also raised a whole lot of money $300 million for you is this still about expansion? is it a land grab? a zero sum gain for some of the delivery startups. you do something beyond door dash >> look, jon, i like the analogy
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of a car race. the fastest car may not win the race what you see in postmates we've built a really good car. now we're ready to put that on the track and believe it's going to be a long race. there's going to be a lot of well-funded competitors in the space. i think a lot of interesting companies. we believe that we're leading the race overall because we are so determined when it comes to efficiencies in our economics. we believe we're in a great position >> what is the opportunity in the suburbs in terms of growth and profitability versus citi's? >> we started in the cities, as you know we were an urban company we export more and more into the suburbs. we launched just a few months ago. we have great partnerships that really helps in the suburbs. you also have to understand the social fabric of the suburbs and of the cities that europe rating in i think the challenge here is for all players to find local
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favorites and offer a great mix to customers >> i see profitable in 90% of markets. what makes a profitable market is it about categories or about geography, something else? >> i think categories, geography is very important. there are other ways how you can join a market to profitability, you can have merchants you're offering the bigger your fleet, the more merchants on the platform, the shorter your delivery times, the easier to drive the market to profitability. >> does that number go higher from here? does it even come down to 90%? >> i think it will only get better yes, we may invest more money in growth this will not change our unit economics or the fundamentals of the company. as a matter of fact, we're at a point we're making money on the platform >> the players in the category that fail, why are they going to fail is it expansion too fast is it their data isn't good enough to know exactly what they should be delivering to the areas they're trying to expand
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into >> i believe expanding too fast is a factor. if you don't really understand the logistics engine you're building, if you spend a lot of time on issues, you will fundamentally run into roadblocks down the road you may try to win deals too fast i think that can make a company falter >> in terms of the goods you're actually delivering, where do you see the biggest opportunity? is it grocery? is it prepared meals you're doing a partnership here in new york and l.a. with sugar fish i'm living in the suburbs. i might want access to that. that sounds exciting where do you see the biggest opportunities? >> today 95% of what we deliver is prepared food on the api side that looks different. we have a great partnership with walmart. we deliver for apple we deliver for many api partners so for now it's prepared food. but i believe that over time just as they have in the past our customers will guide us to the categories they like to explore next finally, are you thinking
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ipo? is that on the plan? is it in the playbook? if so, when? >> it's absolutely in the playbook i said it before i would love to take this company public i think it's a brand that deserves to be public, and we really like 2019 >> 2019. i hope you'll come back for that day. >> i will. >> good to see you again the billion dollar valuation, postmates. we are watching the price action on tesla if you missed it earlier this morning bloomberg reporting they're under investigation by doj over those public statements made by elon musk. this is according to two people familiar with the matter to bloomberg. a criminal probe running concurrent with the s.e.c. investigation by regulators there. opened the investigation after musk did tweet last month the now famous funding secured line. >> his brother on "closing bell" last night is also a board member didn't have much to say about that how the board responds to this
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when we find out the details lots of eyes on the board and this story continues to develop. >> meantime markets are higher right now and it's consumer discretionary and tech leading the way. >> the best day for the nasdaq since the beginning of august. let's get to the judge carl, thanks we'll continue our breaking news coverage of the tesla story. that company now apparently facing a criminal probe by the department of justice to run alongside a probe already launched by the securities and exchange commission. let's bring in our phil lebeau who follows tesla as closely as anybody. good to see you. what do you make of the story? >> reporter: not surprising, scott, and we don't have much more than these headlines which is basically bloomberg reporting there is reportedly a doj investigation into elon musk, a criminal probe, into elon musk's tweet taking the company private or the plan to take the company private. that was sent ou

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