to kind of really hunker down and say we don't even know if we wells fargo ceo tim sloan retiring effective immediately need a deal with the americans we'll show you what warren remember, this is deeper than trade. buffett has said about sloan as it's a combination of one belt, one road, which is this another warren might have been a little involved in all this. infrastructure project to unite we'll talk about that just the land mass. before the announcement. it's made in china 2025. it's friday, march 29th, 2019. "squawk box" begins right now. ♪ i like to dream necessity will take advanced manufacturing, and it's huawei ♪ yes, yes and the 5g roll-out. ♪ right between the sound machine ♪ the convergence of all three of >> live from new york where those or trying to make china an business never sleeps. this is "squawk box. economic -- for the 21st century and essentially use their ♪ totalitarian mercantile system to replace free market good morning, everybody. welcome to "squawk box" here on cnbc we are live from the nasdaq capitalism of the democracy. i was in japan, and invited by market site in times square. the liberal democratic party to andrew ross sorkin will be go around japan and give these joining us later in the show with a first on cnbc interview lectures i give on china. with the founders of lyft. more on that in just a moment. our guest host for the hour is ed lee he is "new york times" reporter. also a cnbc contributor and, ed, good morning >> good morning. >> good to see you we'll put you through the paces. lots of news to run through. >>.

>> let's check on the markets this morning u.s. equity futures so far on >> that's why lighthizer is so the session. important. this is about fundamental, up about 50 points structural changes to the core of the chinese economy to really the s&p indicated up five or so. integrate it into industrial nasdaq indicated up 22 democracies. this could go on for a long the dow now in the mid -- it's time i happen to think you're going to have to put the punitive not quite back to its highs. tariffs up to 25% to bring the it seems closer to its highs chinese really to the table to than the s&p have the type of changes that trump has been hammering on i was looking on a chart since the day he started this. >> depending on your then the s&p, same thing perspective, we could get -- i 2815 in the mid to high 29 ds at one guess -- lulled into a false point. within -- not there yet, but not sense of security on a few minor issues you even -- the organization points out nuclear capability. that far a lot of people think this might be it for the year they're ramping things up. we're not necessarily in that same position. it's the only u.s. technology. sweel see. repressing religion, and then even initiating chemical warfare as the prime source of sflug

u.s. campuses and corporations back to 241. do you think that president trump shares some of these views stocks in china surged overnight or, you know, he talks very to shanghai composite. favorably about his relationship jumped 3% on hopes of a with president xi? u.s.-china trade deal. at about 3:45 this morning i wonder if he has the same type of fear of the future or at treasury secretary mnuchin said least the idea that this needs u.s. trade rep and i concluded to be at least thought about skrukive talks i look forward to welcoming china's vice premier liu to >> the reason president trump is continue he's important discussions next week. the president of the united we'll talk much more about china states is because he ran an trade and the talks with former anti-elitist campaign. he rejected the thesis that trump advisor steve bannon america is in decline. that's coming up at 6:30 a.m. remember, the working class people in the united states felt eastern. that the elites in our country he is actually -- there is a were having managed decline of cold war group that was focused on soviet union and other -- the the united states. rise of communism that is now being not necessarily resurrected, but the says focus is on china. president trump, and this is why these gentlemen think -- >> this is the new cold war. he is walking a fine line. he has a great relationship with >> even if there is a trade president xi. deal, just militarily and strategically and a lot of other ways it's clear that the u.s. is

in china's, i guess, crosshairs in terms of global -- >> china is now the second largest economy. you are talking about two super powers >> measuring it, too the number of people that's already number one >> it's also the stated ambitions from china that's it. >> just about. they are big, and they've been big for a while now. >> there's an entire focus that we don't just want to be big he is treating really the korean we want to dominate, right i think that's the key here. negotiations as a subset of the overall china issue. president trump is the first -- this is not about political party, but he is really the first leader we've had in 20 or 30 years that have actuaid he understands how to confront >> that's what we think about global trade you trade with you and you trade with us, and we'll have a future china with keeping on the table. the committee on the present danger, we're up front that we together raise the standard of living for are hawks in this regard humanity is there a way to do it together, or is it a zero sum we understand that we think game china has to be confronted on zblie think some politicians think there's a zero sum game the economic war not kinetic war, but information with these things. and economic war that they've >> is it our fault that we view been running against the united china that way do we have our guy on yesterday states.

from morgan stanley? >> you know the guy. steve. the guy from morgan stanley. loves china. works over there >> the economy in russia is the size of new york state china is the threat to the >> he didn't say yes in the past >> you didn't say it to him industrial democracies in the yesterday? >> no. west he was on remote just not the united states, but it wasn't my interview the industrial democracies in the west, including japan and >> sorry, steve. you can am bool back soon. south korea. that's why this is the defining issue of president trump's >> tore stur each other. presidency we'll tell you about big news >> steve, we're a business network, and i could keep -- it overnight. tim sloan announcing that he is would be fine just talking about stepping down from his job at this, but, you know, a lot the bank effective immediately shares of wells fargo jumping on happened over the past week. i think you were interviewed at that news. senator elizabeth warren had one point by the special been calling for sloan's ouster. prosecutor you have said -- i think i she took a victory round yesterday on twitter tweeting remember you saying even though i'm glad tim sloan got canned, you've been -- there are times but let's be clear where it seems like you go off

if he broke the law, he should the reservation with president go to jail like anyone else. trump, but i think all along you my ending too big to jail act said there's nothing to this in would insure that bank terms of russian collusion is that fair to say that you executives can be held responsible and personally for their banks cheating thought this would be the she also said about time, i think, kind of taking a page out outcome? of aoc, coming after it, and >> remember, i was the one that said from day one i advised president trump not to fire comey because i didn't think the pretty snarky. collusion investigation of the fbi would amount to anything, >> there's a rising tide against and i actually warned him. wall street in this way, right i thought you would get special with the new left and i think -- counsel. remember, this is what people miss about president trump >> they're all trying to outdo themselves, though president trump waived executive >> it was the who dat sort of privilege, attorney-client response to the whole thing? >> i don't know how well that privilege. rooins priebus as chief of plays out, but i think senator staff. myself up there. you know, i was up there for, i warren actually has set a lot of think, 30 or 40 hours as was don the tone and a lot of the sort of standards in terms of how mcbegan and reince priebus 2020 will play out in terms of it was a prokotology exam, not what to look at. there is a whole call for an interview breaking a big tech, et cetera we shipped 1.2 million documents. i think she wants to take a there were 5,000 subpoenas, 500 closer -- >> i know you are at the new witnesses. president trump is the one that forced that. president trump says there's no yorker collusion. let's get this over with, against the advice of people even like myself that said, hey, now they have a special counsel.

we ought it play the by ut rules that clinton and bush and reagan >> do you think tim sloan needs played by. to go to jail? it was president trump that said no, i want to get it all out >> what i think doesn't matter i think it's the people -- there, and i think that this >> let me ask you, is just thing that the media has run over the last year has been a running a bank and trying to be total hoax a profitable enterprise, is that i think mueller, who i've had a grounds for jail lot of respect for, and i have is that grounds for jail in your said he is a combat marine view >> i don't think that's the this thing i think is -- criticism. i think the criticism -- president trump is coming off >> null athe time she's been the chain. you see in michigan last night, digging into this, they can't find anything. >> maybe they need a special some of the comments he has made about the fbi, and the cia and prosecutor for a couple of how they comported themselves, i years. >> you mean prosecutor people in think brennan, clapper, i think the public sphere before any a lot of the people at the fbi actual did. have a lot to account for. >> i'm sure he committed some crime. i don't know what it is, but -- i don't think this thing is over by a long thing. i think it has to be held -- >> it was not just -- >> it's pretty apparent to me people have to be held there's a crime. accountable for what they did in >> maxine waters had also been this, and i think we're at the top of the first inning. amping up a lot of pressure on >> if you were a mercenary, and the situation, too you didn't have any idealogical just hours before this news constraints, and the democrats broke yesterday, actually i came to you and said we want you spoke to warren buffett, who is to elect a democrat in 2020, wells fargo's largest which one would you three your shareholder. i asked her about tim sloan, and here's what she said when i weight behind out of the 20 that are proposed right now asked if tim sloan had his is there one that you think would be able to take on support. president trump most

effectively? with. >> as it sits right now as president trump comes to the gauntlet in the southern district of new york, it comes to this brutal -- this brutal gauntlet they've set up for him, i think the best that they're going to have -- i don't think >> i went to bed at night, and i these people defeathim was scared because i didn't know i think the combination of what additionally had been done harris and beta o'rourke is the on ten years yerlt or five years earlier and how i deal with it way to mobilize their base and because people were furious with give it the best shot, but, joe, us i'm very empathetic to anybody i have said this they're all about electability that walks into a bank problem now. in the fall of 2019 in the and a very, very, very large and run-up to the iowa caucuses and the new hampshire, south carolina, if they don't have publicly sensitive institution somebody who has broken out of the pack and looks like they can take on trump one-on-one, where you have maybe 250 or so they're going to start looking at people that can, and i don't think hillary clinton, people should not count her out she got 63 million votes thousand people, and the bad she's going to be sitting in the acts of one can reflect on the bullpen waiting for the call this is going to be very, very, rest >> i spoke with warren buffett last night after all of this very tough. happened i was getting on a flight trying to come back to dallas -- come back from dallas by the time i landed at 8:30 i

was able to get in touch with him. he said that he actually knew about tim sloan's departure the day before on wednesday. >> much more pressure than tim might have anticipated or that buffett had anticipated, too he says he stands by his support of sloan in this entire >> you know, we have something nice every to look at. situation. fim called on wednesday wanting that's just beautiful. to know if he could talk to just there great place. we appreciate your time. thanks >> i know the audience -- i know buffett on thursday. the audience at squawk is always warren said he was going to be appreciate havive of this. >> thank you out of the office all day. when we come back, wells warren said it came to him fargo shares rising after ceo it was out of the blue, and he had not spoken to anybody. tim sloan stepped down effective immediately. we're going to talk to jeff about the big bank shame-up. >> yes, he is on today as well first, though, let's take a look at what andrew has coming up for i think he was a big fan of tim us from los angeles. sloan saying this has been a real loss. >> it is the biggest ipo of the this guy was maybe not the most year lyft going public today.

we called the lyft to go to the charismatic, but it was a job ipo. e ess who i'm carpooling with. that -- cfo became the ceo, but arwe there yet >> are we there yet? he was -- i don't know >> let's take a ride i just think that -- i mean, that -- it seems like hyperbolic rhetoric to me that's a win. i don't think she's going to be but it's not the only reason i switched. the nominee. geico's a company i can trust, i don't. i don't know if it's fair just to make a name for yourself by with over 75 years of great savings and service. just going off ♪ >> remember when alexandria -- >> that's her industry now that's a win-win. >> just a eveniweek or two ago,e switch to geico. said are you in the business of it's a win-win. financing companies that cage children and i think tim sloan was, like, what? >> he is, like, where is this going coming from investments in are handling a lot of the border stuff. >> andrew would know are these republicans plans to re-elect trump, do you know? you mighyour joints...ng for your heart... switch to geico. or your digestion...

>> at the next meeting we'll so why wouldn't you take something investigate. >> the populist rhetoric works for the most important part of you... from a different angle >> from a different angle. your brain. >> it's the same kind of with an ingredient originally discovered in jellyfish, hyperbolic, you know, sort of -- prevagen has been shown in clinical trials to improve short-term memory. >> insanely far bargain. prevagen. healthier brain. better life. fierce, nasty. >> left, this is a feel good story. pricing its ipo at $72 a share that was at the high end of the targeted range it values the ride-hailing company more than $20 billion. trading on the nasdaq under the ticker lyft. before that we're going to bring you a first on cnbc interview. that's coming up at 8:20 a.m. eastern.

>> it's nice to have two operating companies. >> i'm involved with both companies where. >> you do. so it's not an either-or >> an either-or. the prices are relatively low just given the fact that there is this competition. it's been a competition for market share between these two guys for a while, and that's going to continue going into this >> the prices for consumers -- >> a lot of drivers drive for both companies >> both companies. >> it's that kind of -- i don't know where is the loyalty. that's what happens in golf nothiand in life.ily. >> promiscuity >> i mean, it's not a bad thing i'm very fortunate i can lean on people, in this case you have to make as much money as you can and that for me >> define -- are he with e going is what teamwork is all about. you can't do everything yourself. you need someone to guide you to -- are we going to own and help you make those tough decisions, nothing? remember, were you here for the that's morgan stanley. lady that rents out the wardrobes for people they're industry leaders, >> rent the runway >> you don't own your clothes. but the most important thing is send them back they want to do it the right way. >> you don't own your apartment. i'm really excited to be part of the morgan stanley team.

you don't own your apartment i'm justin rose. >> air bnb >> everything is a service, we are morgan stanley. right? that is the trend towards -- you don't need to own the property >> i might rent out my lululemon pants that was back in the news yesterday. did you see what their stock did yesterday? who was ahead of the curve zpool we are downtowning down to >> you were. our big interview with the lyft >> grasso had the same pants on. >> i saw that. >> identical co-founders live with andrew here's andrew with a closer look at the lyft co-founders' morning routine. >> you guys carpool to work every single day >> middle age men in lycra >> yeah. every morning. >> this is the morning >> yeah. >> you drive >> back to the ipo >> i drive and we go to ever the question is is it going to day. be profitable or something that but it's sort of our daily sync. people should be jumping in on >> so this is like your morning warren buffett weighed in on the ipo. meeting in the car i asked him if this hot idea is >> yep >> we've been working together for 12 years a good investing opportunity, and so, i think one of the most and here's what he said. >> i don't know whether the ag amazing things is how quickly we gat valuation is close to $25 can give each other a glance or nod and know exactly what the billion. something like that. other person is thinking i certainly wouldn't buy a so it's -- our work together is

business for $25 billion extremely efficient. >> so you've always been the i always think in terms of sort of outgoing one at buying a whole business we buy 100 shares, and he think we're conferences and all sorts of things buying a whole business. i've always thought that you have demured, let's just say, when it comes to the sort of the public piece of this but now you're going to have to be part of the public piece of this you are. >> totally. >> so how do you feel about that i look at what i'm getting as a >> i'm going to try and make part owner of a business, and i every minute i do sort of with don't know why with all the the press publicly count things you can buy that you and still try to spend the majority of my time, you know, sort of in the trenches with the would pick a business that team i think that's -- you know, it's really has to be earning $2.5 part of public life and i'll billion $3 billion pre-tax in embrace that >> our interview with the lyft five years to even be on the cofounders is coming up at 8:28 same radar eastern time that's live with andrew in a bit. meantime, tim sloan well, i can -- we haven't bought announcing he is stepping down yesterday i spoke to warren an initial public offering, or i haven't, charlie hasn't, i buffett. think, since 1955. berkshire is the bank's largest shareholder. i asked if tim sloan had his

full support. >> yeah, 100%. it was ford motor. yeah i don't want his job it was favor gave me is00 shares, and i have to admit, the statute of limitations has expired. i took a free ride on our i actually came in once 28 years insurance and made $500, and it's the only time i've ever ago at solomon where the whole world was mad at him done that. and when i went to bed at night, i mean, i was scared because i didn't know what additionally had been done, you know, ten years earlier or five years >> i think buying new offerings earlier and how i'd deal with it because people were furious with us so i'm very empathetic to during hot periods in the anybody that walks into a big market, i don't think it's anything the average person problem at a very, very, very should think about at all. >> you have said that you missed out on some of those like you should have bought amazon a long time ago large and politically sensitive you should have bought google/fall bet a long time ago. could this be one of those institution where you've got scenarios? >> oh, always can be maybe 250 or so thousand people i mean, there were a pair of and the bad acts of one of them, dice at the desert inn many years ago. they had them in a little case you know o, can reflect on you they came out 32 times in a row, >> shares of wells fargo rising you know 1.8% up by 89 cents to $49.98

four billion to one. a little over. joining us now is jeff you can go around making dumb bets and win sonnenfeld at yale school of you know management jeff, what did you think about it's not something you want to take as a lifetime policy, this news about him stepping down >> i think it's shameful i think it's a disgraceful though moment especially for senator elizabeth warren i think maxine waters acquitted herself with much better respect in the more recent rounds of i missed all kinds of opportunities in my life exchanges regarding wells fargo that's -- you just want to make but also has been chanting with drum beats along with senators sure that you're on the side of sherrod brown, congressman maxine waters. the house when you bet calling for this ouster making a >> that's warren buffett saying whether he would buy into a hot sacrificial lamb out of a ceo is ipo like lyft. >> you know, also, warren, he foolish. too many times we have seen the needs to touch the product media -- not cnbc -- but "the he needs to know the product before he invests many it. wall street journal" and several i think self-interested that's a big part of his approach in investing generally. congressmen grand standing and >> i don't think it's the not knowing the product. confusing the good guys with the bad guys there elizabeth warren in 2016 used

the exact identical lines appropriately going after john stove who was the executive responsible for a lot of the misconduct that had been revealed by outside parties the promise is as the market then since, 100% of the bad headlines lifts up, they'll finally get into that margin you read are not the result of i think it's a tough game. the office of the controller of the currency ferreting something out or the federal reserve says they're coming up with something even if it's down to only two, else or the consumer financial is there a way to make that protection board being there is a guardian of profitable, or is this going to be a battle for one of those public trust and safety. >> in terms of this market share no it wasn't even eliot spitzer between uber and lyft, i don't they came out with this on their own. think either one is going to be tim sloan was leading the profitable in that scenario. investigations, turning over the way they're going to get to every rock to see what was there and then bringing that news profits is which one of these two will be the firs autonomous, and that will take a public while. and these other bureaucrats and media people jumped on the coat >> the second it rags. tails trying to claim credit for what he was doing and also in the slim two years delivering the company's best share >> they're trying to go through 80% up just over last year other types of means.

sweeping organizationally changes. more than half the board is brand new. it's half -- i mean, half the management team after next month will be dramatically more. they have a new chief technology officer yet again coming in. they want to be a transportation but already, there are more than service. >> the chart that we showed is outdated halfway new players. going for accountability with with the higher than it came up the bad guys with yesterday, that was showing don't confuse them with the good guys it's just shameful lyft at a valuation of $18 billion. the latest valuation puts it at >> hey, jeff i was curious. $24 million. it moved up a couple of moves on the fact they're looking now for an outside person as ceo, i that chart mean, that was sort of the cloud overhanging all of this is that sloan, whatever his role in this is is the fact he is tainted by being an insider, being part of there is a lock-up period for the company through all its the shareholders, and they're something like 930 days. turmoil. >> and i'm glad you asked that it's not unusual that was ed, right >> it was. >> a lot of times that old it's a hijack part of understanding that rastafarian adage the new broom >> even pre-ipo, it wasn't -- i sweep clean is a distortion. what the full adage says, the

mean, i would be smart enough to full expression is that news never buy. broom sweep clean but the old brush corners. snoot only ipo he ever bought was ford motor you get somebody in there that actually knows >> there is a couple he could by the way, it's of course going to be an outsider. have bought after google zero chance, not going to be >> facebook went down, and then allen paulson. not going to be another chuck prince like at citigroup who they can do it, but not the day steps into the role after being of the ipo >> he is saying it doesn't the general counsel. necessarily mean it's garbage. not going anywhere because of symbolism in politics, it'll be somebody from just you have to be willing to the outside. take a flyer tim sloan was doing everything right. that's bet with the house, not gents it fritz henderson got targeted and >> ed lee, we'll have much more from him throughout the hour, and stay tuned for our big more recently pulled mara barra. interview with the lyft found irs. john zimmer, logan green mary barra has done a fantastic andrew was there with them, and we'll be talking with them in a job. but certain self-interested couple of hours. coming up, new developments grand standing politicians in the investigation into the become bullies crash of the boeing 737 max that's what it is. he's not the most charismatic plane in ethiopia. back slapping self-grandizing we will bring you the latest guy. in fact, hes none of those he's quietly doing the work that

needed to be done. and the rewards you get -- by be right back. the future of technology investing the way, this is completely voluntary. i'd been in touch with him through last week. last week i wanted to position him right next to janet yellen who was there and i think he saw through my ruse because he couldn't make it but he was originally coming lies beyond the tech sector. i heard they made a mistake with it's about technology transforming every sector. the risk cap that federal ♪ at pgim, reserve put on not for any our bottom-up approach uses a technology lens particular reason other than to identify long-term winners. bowing to the political from energy... to real estate... pressures. >> good to see you >> thanks. to retail. good to see you. finding such opportunities for alpha >> okay. thanks to ed lee for sitting in is the true value of active investing. with us for the hour and around the world, you have a partner in that pursuit. if andrew can't be there, you pgim: are as close as we can, you the global investment management businesses of prudential. know, just in eterms of trying o replace him. which is impossible. >> of course >> but we love having you here, so thank you >> always happy to be here. coming up, lyft raised its

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lyft prices. the ride sharing company pricing at the high end of the range andrew is on the road with lyft's co-founders leading up to a live interview first on cnbc >> did you ever think that this was going to happen? >> this was the dream, but no, we didn't honestly think it would happen and it would happen as quickly as it had tim sloan out at wells fargo. the ceo stepping down. what does it mean for the shareholders and more developments on the u.s./china trade talks former senator bob corker weighs in on the ongoing negotiations the second hour of "squawk box" begins right now ♪ live from the beating heart you should be mad they gave this guy a promotion. of business, new york, this is "squawk box. you should be mad at forced camaraderie.

and you should be mad at tech that makes things worse. >> so confusing. good morning welcome back to "squawk box" here on cnbc i'm joe kernen along with becky but you're not mad, because you have e*trade, quick. andrew is in los angeles this who's tech makes life easier by automatically adding morning getting ready for his big interview. technical patterns on charts he will sit down with lyft and helping you understand what they mean. co-founders -- >> hey there >> hey, andrew don't get mad. that's at 8:20 a.m. eastern. get e*trade's simplified technical analysis. we like those shots, andrew. it looked -- did you know it was going to look like one of those a cfp professional is trained, knowledgeable, ipo karaoke things >> james corden. and committed to financial planning in your best interest. >> i knew what we were doing find your certified financial planner™ professional except we were wearing seat belts. i don't think they always wear seat belts, guys at letsmakeaplan.org. because we were asked whether we -- >> what? >> on the regular karaoke because it doesn't look as good. because the founder said to me we got to put the seat belts on. >> good. >> you had to be told that you should know that >> i know. >> did they insist you swear your zweater. i haven't seen it in awhile. the zipper sweater

>> i was away last week. i was skiing that was an old ski sweater. i needed something to stay warm. that's all that was. >> you're okay, the skiing took your mind off everything you're in a good place >> i'm in a very good place. how are you? you're in a good place, too, i bet. >> i didn't know why you'd say that because of the lyft ipo. it's going well. thank you. we're going to talk about all that lyft shares pricing last night at $72 a share we're going to talk much more about the highly anticipated ipo. first becky has some of the other big top stories for today. here's what's making find your certified financial planner™ professional headlines at this hour steven mnuchin says that trade talks in beijing have been constructive he and u.s. trade representative (video games have evolved.addle) why hasn't the way you bank? robert lighthizer have conducted virtual wallet from pnc bank the first meetings in weeks. helps make it easier to see what you're spending, stash more into savings and stay on top of your finances in a digital world. wells fargo's tim sloan has just one way pnc is modernizing banking stepped down to help make things easier.

pnc bank. make today the day. wells far wells fargo has begun a search for a permanent successor. shares are up by almost 2% and boeing is facing its first lawsuit over the recent ethiopian airlines crash involving a boeing 737 max jet that suit was filed in chicago by one of the families of the victims. "the wall street journal" is reporting that investigators have reached a preliminary conclusion that the flight contro futures, on this last trading day of the week, month, and quarter, dow futures indicated up by 72 points. a the launch of the lyft ipo, right now it's time for the executive ench e edge. let's bring in an investor's warren buffett expressing some skepticism of apple's plans to perspective. join the streaming wars. john elton a few days after the tech really john elton giant's major announcement of yeah, your whole life, right fresh video and subscription >> no, you're the first, joe news offerings we got the chance to talk to him and asked him >> partner at grey croft about the apple shareholder that

asked -- he is a major shareholder. it's his biggest holding he has $47 billion in apple. with ipos, it doesn't matter we asked him for his take on it. whether it's mobility or whether it's lyft or uber or anything >> people are always going to else if it's something you want to be want to watch sports in, you probably want to be in on the ipo price and you can't near going to want to watch certain things be they'll want to watch the so do you buy it in the olympics the question is how much is aftermarket today? >> i think so. i mean, lyft is an incredible worth whoever gets it to them, but you have some very, very, very big players that are going american success story to fight over those eyeballs the company in just seven years the eyeballs aren't going to has gotten to $2.2 billion in double the time isn't going -- i mean, it's a relatively fixed market revenue. it's hard not cob excited about it they continue to invest. it's founder led and those guys are pushing execution, pushing innovation. i think it sets them up well for the future >> we always ask this question, we'll see how a game like that andrew comes out, but that's not an and that is do you not price it easy game to predict because as high as you can get it so have very smart people and lots of resources trying to figure out how to grab another half there's some aftermarket demand? hour of your time. if you do that, do you leave some of the table for the i would not -- i would not bet -- want to play in that game founders what's the ideal price in this

not too hot, not too cold. myself that's too tough for me. >> well, you kind of are it's your biggest investment are they succeeding? >> i think in terms of pricing, >> oh, no. apple is a lot more than -- i i think today it'll trade well there's a lot of appetite for mean, apple, you know, i love to this company see them succeed that's a company that can afford it's very well known i think the fact they're getting a mistake or two out first is great you know, you don't want to buy it's a consumer company. stock in the company that has to it will drive awareness. do everything right. >> let me ask you very quickly it'll be good for their apple also announced a credit business i will expect this company to card that they're releasing this trade well >> the valuation went -- it's week it's supposed to have no fees and you don't even really need a supposed to be 18 now. physical card. you can do it just right over it's what, 22? your phone >> 24.3 on the post-money. does that concern you about amex where you also have something >> if it was 30, that'd be too high like $16 billion invested? there's a number too high. >> we own about 18% of amex, and are you sure we're not there already? >> just here in new york alone, ride sharing accounts for over everybody in the world wants to 50% of the overall control payments transportation dollars. i talked to richard fisher here >> are you answering my question just a few minutes ago, and he about value? i'm asking you about -- i mean, reminded me that currency i know what the company does >> it's usually a tam question circulation is down 1.7 trillion, which is up from about >> a what? nine the currency circulation is up >> what is the overall market 6% a yoer. for lyft and mobility is an enormous

market they've just started innovating. >> when you have two companies that are competing so harshly and you are basically losing money any time everybody takes a ride, how do you get to profitability? does it take a different type of spajs huge, huge game, and product that they have to get different countries will respond and different ways into do they have to branch out from i like our 18% position at amex here or can they make it accident and i like our 5.5% profitable on this alone >> lyft has doubled their market position at apple. share versus uber since the 2017 when we return, china stocks surging overnight on renewed issue that uber had. optimism around the trade deal >> which is great. between washington and beijing but it says to me you're not we'll show you what the treasury seeing these companies go away secretary tweeted overnight. any time soon. so they're going to have a major and get reaction from former trump advisor steve bannon that's next right here on cnbc competitor. >> but what comes next is you layer services and products that also, later we have a huge interview ahead of lyft's ipo make their transportation network more revenue, more today. the company's founders will join dollars per ride, higher margin. us at 8:20 a.m. eastern time and that's the beauty of these first on cnbc. right now as we head to a break, market place models. >> hey, john, was what that mean take a quick look at yesterday's s&p 50000 winners and losers though unlike uber which has produced >> it was wonderful, bravo things like uber eats and >> i loved that. >> it was great. >> it was pretty good. talking about all other sorts of >> well, it wasn't bad >> there were parts that weren't transportation and true very good. services, lyft has really tried >> it auto have been a lot

better to portray itself as a pure play transportation company so when you talk about what those other services are that you'd layer on top that would put it into a profitable category, what are you looking at >> well, you made the point. at&t provides edge-to-edge intelligence, they're focused on covering virtually every part of your finance business. transportation thauf co and so if someone tries to breach your firewall in london they've come out with scooters & you start to panic... don't. the market leader there. because your cto says we've got allies on the outside... that micro mobility is a huge area of growth i think people in -- you know, ...& security algorithms on the inside... today in l.a. where you are, you ...& that way you can focus on expanding into eastern europe... know, it's going to be increasingly the mode of ...& that makes the branch managers happy & yes, that's the branch managers happy. transportation for 80%, 90% of the sub-two-mile transportation. at&t provides edge-to-edge intelligence. it can do so much for your business, the list goes on and on. if you're in -- >> you think that transportation that's the power of &. is profitable, though? & when this happens you'll know how to quickly react... >> yes >> you do. so you think actually the what do advisors look for don't just track an index, scooters are significantly more help me meet a client's need. profitable, that's where the is the fund built to sell margin is relative to the cars or built to last? with a driver? etfs are only part of a portfolio. >> the scooters are incredible so make it easy to explain. because what happens is you put give me a quality fund scooters out there without any that helps me get clients closer to their goals. advertising or whatnot, people start driving them around. that's unheard of.

flexshares etfs are designed and managed and in the markets they're in, around investor objectives. it's incredibly explosive. so you can advise with confidence. it changes how people go around before investing, consider the fund's investment objectives, the city and think about risks, charges and expenses. go to flexshares.com for a prospectus transportation >> how much of the bet, though, containing this information. is on autonomous vehicles read it carefully. long-term? in terms of the way you think this is where i trade and manage my portfolio. about this company ultimately getting to profitability does that matter since i added futures, >> that's an enormous vector i have access to the oil markets here if you look at the underlying and gold markets. okay. i'm plugged into equities - trade confirmed economi economics, taking out the driver, it does get more positive - and i have global access 24/7. meaning i can do what i need to do, announced they're going to roll out in new york city then i can focus on what i want to do. autonomy is coming visit learnfuturestoday.com to see who are the winners and losers what adding futures can do for you. in that? google has a big bet with waymo. gm which is investor in lyft has a big investment there i think lyft and uber and these guys do have a card on the table in autonomy. and that could pay off enormously

>> that's it, andrew this is -- i mean, you heard my question >> i could go for hours if you want to. the thing i'm trying to understand about the autonomous piece, we're going to -- go ahead. >> i ask about 24 billion and it's like well they got 50% of the revenue. okay how about $50 billion? where is the number where it's not worth -- >> i think the underlying aspect of your question is profitability. the big debate, if we remember when amazon went public -- amazon was skewered for being so unprofitable bezos said it would be the easiest thing to make amazon profitable and the stupidest i think amazon and lyft are in the same space >> so you think consumers would pay twice as much money? >> i mean, yes, i agree with you at some point are you get paid for the risks you're taking is the natural question

but i'm very bullish on the space and these companies. i think the company wills ies w well in the future. >> if you're an investor thinking what to do, is there a rieb you're going to see that things are up modestly. list of companies to say i can dow futures indicated up by comp to that that makes sense to me about 20 points. s&p up by 2.5, and the nasdaq up there's a metrics to which i can by 13 on this final trading day say this makes sense to me of not only the month, but also >> i think amazon is a good the quarter. lyft makes its public debut example. it's another marketplace later today. it's a consumer company. last night it priced its ipo at and it has invested in $72 a share. that was the high end of the innovation and driving the next targeted range that values the ride-hailing generation products. company above $24 billion. one of the interesting things in shares will begin trading today the lyft ipo is that they pay on the nasdaq under the ticker lyft before that we will bring you a something like 18 cents a ride first on cnbc interview with the company's founder. or 14 cents a ride to aws. andrew is going to be sitting down with the two founders, and that's coming up at 8:20 a.m. amazon's a big beneficiary here. eastern time stocks have surged in china you know, they've grown into an overnight. the shanghai composite jurped 3% enormous company by continuing on hopes of a u.s.-china trade to innovate and invest in the deal at 3:45 this morning. engineer team to build it.

i think lyft and uber are great examples of that they keep coming out with new stuff. they are trying to figure all this stuff out enormous markets are changing continues -- to continue these important discussions in the world. washington next week >> great thank you, john and andrew yesterday larry kudlow said the is that the new goldman sachs -- is that goldman sachs compliant? u.s. may drop tariffs if a trade deal is reached while kooepz the outfit today keeping others in place to >> oh, no tie. you know, we're in l.a insure china's skpliens. i'm wearing sneakers, too, by for more on the trade -- trump the way. trade agenda let's welcome i thought i'd try to -- >> you wear sneakers here every former white house chief strategist steve bannon, current day. >> i know. but this i was -- i almost wore the little socks, you know, the head of the citizens of the american republic looking to little ankle socks >> oh, yeah. that's better than no socks. revive a cold war era that's gross organization to take aim at >> when are you back china. he joins us from rome. monday i'm going to wear those steve, thanks for being with us. old shoes i have i need them resoled i'm going to i think we have about a two or three second delay wear sneakers on monday. it's going to look like you're just very, very thoughtful in >> the ones on your feet >> sure. considering my questions >> don't show them i'll ask a question, and then >> it's coming apart i'll stop. i'm going to wear some sneakers this was an advocacy group from with you the 1950s. we'll do a chairs segment and i think originally to take on

compare. >> see you on monday the soviet union, but now it's >> well, we'll see you in a couple minutes the committee on the present when we come back, warren buffett on the record. danger in china to try to educate people on what we're really facing here at the same and we are counting down to the interview of the morning, time that we're in these trade talks. even if we get favorable trade andrew's interview with john talks, china in your view is still a major problem for the zimmer and logan green that's coming up a8:t 20 eastern united states in the future. time stay tuned, you're watching "squawk box" on cnbc >> look, joe, i'm in rome, and what happened over the last (indistinguishable muttering) week -- you know, i have been in that was awful. japan, the upper midwest, and now italy. why are you so good at this? what happened last week in rome had a coach in high school. really helped me up my game. where the president of china came and signed over 20 deals i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? were $30 billion and then went coach mcadoo! you know, at td ameritrade, to france and signed 30 deals we offer free access to coaches worth $60 billion. here it was about the anchoring and a full education curriculum- of the one road project. just to help you improve your skills. china is the most geopolitically boom! mad skills. aggressive opponent we've ever education to take your trading to the next level. had, and that's why these trade only with td ameritrade. talks are really at the surface. it's about trade

it's about soybeans. it's about wheat now you can, with shipsticks.com! the reality is the structural reforms that have to happen with no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy forced technology transfers, to get to your golf destination. that's the piece to this, and i think worry a ways away from with just a few clicks or a phone call, that if you look at the back and we'll pick up and deliver your clubs on-time, forth in this, i think the guaranteed, for as low as $39.99. chinese are digging in, and i think some of the hawks in china shipsticks.com saves you time and money. are starting to dig in and say, make it simple. make it ship sticks. hey, it would be nice if we had a deal, but no deal is better for us than a bad deal i think we've got a long way to go before we get a trade deal. >> there's some hawkish comments here, and i'm not saying they're not justified either, steve, but it sounds like both sides are getting more hawkish on. >> communist china represents a idealogical threat to the united states and to the idea of freedom. one that requires a new american

consensus regarding policies and priorities required to defeat this threat that doesn't sound like -- that doesn't sound like where we are in these trade talks. we seem to be getting closer to dhooin at least in trying to move forward into the future together rather than far apart. you think that's a mistake >> lighthizer had to china

. welcome back to "squawk box," everybody. the futures right now sitting at session highs. a lot of optimism out there potentially about trade talks with china this is the same thing that was moving the markets yesterday but right now the dow indicated up 114 points. the nasdaq up by 39. all happening on not only the lyft ipo day but the last day of the quarter. coming up, former senator bob corker joins us to discuss the latest round of china/trade talks, boeing, and the faa andrew on the load with the lyft co-founders ahead of today's big ipo on the nasdaq. there's a great shot right there. we will be right back.

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i think we're a ways away from that. if you look at the back and forth on this, i think the schnz are digging in and i think some of the hawks in china are starting to dig in saying, hey it'd be nice if we have a deal, but no deal with better than a bad deal i think we have a long way to go >> that was former white house chief strategist steve bannon commenting on the u.s./china trade talks within the last hour with lighthizer, mnuchimnuchin,d others pushing a deal. right now we welcome senator bob corker it's good to see you >> great to be with you, becky thank you. >> where do you think we stand right now? that was steve bannon. the thinks trade talks are going to be much tougher than people are anticipating markets a little higher this morning. some are attributing that to a tweet early this morning from

steve mnuchin saying progress was made and those talks will continue next week what's your take >> well, i'm glad the talks are tougher because it means the white house is pushing for a much tougher deal. so i like what they're doing they're hitting at the base elements that need to be corrected. instead of taking it appears instead of taking a cheap deal where china just agrees to buy more goods from the united states so i like the direction they're going. i hope it'll stay tough until they get equivalence from companies there. >> are you okay with walking away if no deal can be found >> absolutely. i didn't like what we did with mexico and canada. i didn't like what we did with europe i didn't even understand how you could do that under a national security designation i do like what we're doing with china and i think we ought to stay with it and not give up

and i'm glad we didn't put this last round of tariffs in place but, you know, the lack of access that we have in china is inappropriate. they're violating wto rules. and we need to stay at it. i like what they're doing. >> senator, one of the other things that steve bannon was talking about is even if we did get a tough trade deal, china was going to be -- in their view, an existential and ideological threat to freedom in the united states for 5, 10, 15 years. we can't suddenly get lulled into a false sense of security watching what happens militarily in terms of nuclear, in terms of so many different things that, you know, if you look at two superpowers going at each other, can we be frenemies eventually >> look, it's no doubt the most important relationship for our country to manage. i think everyone has known that far long time.

their view how to govern a country is vastly different. although, you know, they're continuing to open to a degree and step back at times into old ways but we need to keep working with them history is wrought with two great powers one surpassing the other and creating conflict. i hope that's not the case i think by being tough in these negotiations is a way for us to manage that appropriately. and make sure our country is strong that's the greatest deterrence to problems down the road. we've got deficit issues over time that need to be dealt with. but i like what our country is doing right now promoting economic growth, dealing with some of the tough issues tradewise that need to be death with, a appropriate to continue and strength our military. but i'm one of those people that bloouf we can co-exist and do so in a way that both economies

flourish to me that's the approach we need to take we need to hope that china does well if china does poorly, they're going to look to the outside for some conflict to organize their people around. so we should hope that they do well and we do well. and then process all of our citizens >> thanks for talking me into taking tennessee to the final four, corker appreciate that. >> hey, joe, i'm in one of the great cities in america today. chattanooga. i'm back in reality here we have a company getti intin ty to launch an outstanding futures exchange in a little bit here. great place to be. and in fact, miller told me he was going to invite you to play with us at the honors. >> since i was a kid, going through the smokeys, i've always loved tennessee. one of my favorite places. honestly it's beautiful i love it. >> hey, bob. you're a businessman too and there are some concerns about the economy, what's

happening. we saw the gdp numbers revised yesterday to lower than. expected for the fourth quarter. also, warren buffett was with us yesterday talking about what he sees when it comes to the the bnsf loadings. watches those on a daily basis when you take out the flooding in the midwest, even before that they were starting to see a little bit of a slowdown they're looking at 15% just in that of all goods being shifted across america if you see a slowdown there, that's something to pay attention to watch how do you add it all up what do you think is happening >> yeah, look. i couldn't hear everything you said it's a little garbled down here. but, look. obviously, yeah, the numbers were disappointing for the last quarter. i hope we can sustain this like most americans, loving seeing the wage gains we're seeing across the spectrum as it

relates to employees all across our country. and yes, we need to pay attention. i'm a fan of the chairman of the fed. i consider him a friend and a steady hand. i think he has seen this obviously there's been a lot of discussion around the last couple of months about that. we need to pay attention hopefully this will continue on. and we can overcome a decade of slow growth. i'm also a person who, you know, invests heavily involved in capital structures low interest rates you know, the 10-year yield is way down that's good for the economy. hopefully we'll pick back up this quarter and continue on >> senator corker, it's great to see you. we appreciate your time today and look forward to talking to you again soon >> thank you thank you, becky coming up, what's next for wells fargo? we're going talk to an analyst about the tim sloan departure.

plus buffett talking about his airline numbers and making comments about the boeing 737 max fallout. still to come, the countdown is on to one of the hottest ipos of the year. lyft set to begin trading today after the opening bell but before a single share trades, we'll talk to the company's founders john zimmer and logan green. that first on cnbc interview is comi ungp in the 8:00 hour "squawk box" will be right back. ♪ hold on, i'm comin' ♪ hold on ♪ don't you worry, i'm comin' ♪ here i come

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an update now on the boeing 737 max crash in ethiopia that killed 157 people. investigators have reached a preliminary conclusion that an anti-stall system, in fact, was activated before the plane hit the ground this is from "the wall street journal. preliminary report is expected as early as next week. boeing announced this week that it had finished software updates

to that anti-stall system. it's awaiting regulatory improvement to install them on all the grounded planes. yesterday we asked warren buffett about the 737 max situation. berkshire hathaway hads stakes in the three airlines that fly those planes buffett said he still sees the airline industry as being incredibly safe. >> obviously boeing has a lot of work to do promptly. and the airline industry has been so safe i mean, unbelievably we happen to sell insurance also and the rates went down so far just because of the industry being so sauf. and obviously there's a problem with this 737 max. but boeing, you can bet they're staying up 24 hours to day to

get it worked out. that won't change the industry over time. airline travel is, you know, it's almost impossible to believe how much that's improved in terms of safety over the last, well, during my lifetime >> again, berkshire hathaway owns major stakes in four u.s. airlines recent filings show that berkshire holds more than 10% of delta. that's the level he doesn't usually like to cross in any of his investments, he had said what happened in this situation? >> that was an interesting situation. delta made an appearance three weeks ago where some investment conference announced they'd borrowed a billion dollars to get the shares they brought in 4% of theistocks all of a sudden we own 4% of double the day before. i like the fact they were

willing to borrow a billion to accelerate a stock repurchase program. what i didn't realize is that purchase had taken us over 10% i just decided to buy a whole lot more stock i mean, once i'd lost my virginity. i thought why stop at one, you know >> does that mean you like delta better than the other airlines at this point? >> no. i accidentally went above 10%. >> if you want to look at shares of delta, you're going to see they're up by about 3 cents. $50.35 >> how was it -- the one part about the virginity? >> in terms of going above 10% of ownership in a company had. he doesn't like to do that but when they bought back, it

was going to go up anyway. we had promiscuity earlier on the show oh, regarding drivers who will work for both lyft and uber. >> yes, no loyalty got it still to come on "squawk box," we are counting down to the big interview with the lyft co-founders john zimmer and logan green. 46 minutes and 20 seconds. first, though, andrew is going to join us live from los angeles with nelson griggs, president of the nasdaq, to talk about the big listing and the ipo rush check out the shares of wells fargo. we're going to have more reaction to ceo tim sloan retiring, stepping down. we'll be right back. everyone, look at your phones. the design thinking, the digital engineering, security, blockchain, and we will be first to market! yes. when we do we launch? unfortunately, in 2 or 3,

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why was wells fargo involved in the caging of children to begin with >> i don't know how to understand that question because we weren't >> mr. sloan, wells fargo was also a major investor in the pipeline since wells fargo financed the building of this pipeline in an environmentally unstable way, why shouldn't the bank be held

responsible for financing the cleanup of the disasters from these projects >> which pipeline are you referring to >> either. you know -- >> so we were not involved in the financing of the xl pipeline we were one of the 17 or 19 banks that was involved in the financing of the dakota access pipeline >> details, details, details that was a couple weeks ago when wells fargo ceo tim sloan appeared on capitol hill yesterday becky asked warren buffett about sloan. >> does tim sloan have your support? >> yeah. i don't want him job >> let's bring in marty mosby at vining sparks. did you have any indication that this was in the cards, marty or you heard when everyone else

did? >> no, we heard when everybody else did there's been a lot of banter back and forth and pressure for mr. sloan to retire. but all in all, we felt after he went through the testimony that they probably maybe cleared some of this. >> is it a net positive or net negative in your view, marty >> i think you really have -- it's twofold you're going to see them react today. it's maybe the last step in the sense of clearing the path and getting past this reputational issue. company's done a lot of work they've been through a lot of the reviews. now what you have is a new path forward.

long-term the verdict is going to be unknown. all of the targets laid out have to be reviewed and set again i think in the long run, it's going to be a dicey situation. to see how this transition unfolds. >> marty, who do you think they should be looking towards in terms of somebody if they're looking for an outsider to come in >> i mean, really, in the banking industry there's few colors that you would have out there that would be able to step in with the legacy that wells fargo has. you know, it's really this bank that's been a part of the last

30 years being one of the real high-performing stalwarts that everybody looked to. this now is going to transition to a new, you know, flavor, a new feel and those are big shoes to fill in a sense of going through that process. but trying to find an experienced banker, one that knows how to kind of bring together and maybe somebody from one of the, you know, money center banks because wells fargo kind of has moved from being a -- when you look at it, a super regional bank to much more of a money center bank and bringing all those components together. >> if you do that, if you bring somebody who's got a lot of experience on wall street, are you risking running into the same problems with all of these same politician who is are going to say this is more of the same? it seems to me like you need someone like that who could actually run this bank but does it really put down the headline risk the company's been running into it seems they're stuck in between a rock and a hard place

on that. >> any of these issues, your stock in that position but i think bringing somebody new in will set the stage. you have to remember you have betsy duke as the chairman who has a great reputation being really positive from that standpoint and what you need to be able to address all that at the top of the company. and then underneath that what you need is somebody who has the business experience to make sure a very important financial institution in our country is back on a strong setting >> i wonder, where did sloan go astray, do you think how could it have been seen as really the guy that was perfect

for the job? you think the comments and criticism were fair? it's one of those head scratchers with aoc. but we're getting used to those. >> what these reputational issues -- i don't think there's anything they could have done differently. they rolled their sleeves up they've been working hard making sure they were reconciling or finding other issues that could find to make sure they cleaned this bank up which i think going forward it is going to be one of those bigger banks that has gone through a catharsis. if you think of the reputational issue, he was just cfo during that period. and people mentally had a hard time understanding how a cfo would be controlling these operation. when his job was seeing how they were correct

people really couldn't distinguish between that >> does your job become harder when you've got prominent senators asking whether or not saying he's going to go to jail. if he deserves to go to jail, he should go to jail. this is kind of a crazy political environment. is it just election season i would think at vining sparks you've got to think, wow, i've got to think of a lot of things they didn't formerly have to put into your calculus >> reputational things are tough to kind of watch as they develop or plan for. yes, this thing has legs to its own. it was politically charged that is part of the world we live in today. communication and the way that things kind of, you know, are pushed around is something that we have to deal with but again, these things all have a life go back to j prpmorgan and the l

issue. it took them 700 days before they got to the worst relative performance in comparison to the bank the only thing with jpmorgan was it was in a period of time when the bank stocks were going up. so it wasn't quite as obvious. because when i talked to people about that, they would say jpmorgan rebounded quickly stock price went past that point very quickly that's because everybody else was going up this has been a period of time when bank stocks haven't been going in one direction so it was very obvious that they had not gotten past $50 in a long time. so i think that wore on the management team. if i have to go to really purge this issue out, why don't i move forward? the real ramifications is the bigger banks are going to have to be standardized and have -- when we talk about sun trust

coming together, part of that is the requirement of technology to be able to handle all these situations so having flexibility on the front line is something that's going to be lost for bigger banks because you're going to have to have a standardization process where there is no flexibility for people to really make decisions we have to have a technology or a computer system behind these things almost running the ship for the bank >> okay, marty marty mosby, vining sparks director of bank and equity strategy thanks let's take a look at shares of dow dupont. the company has cut its sales forecast for the current quarter. chemical maker cited floods in the midwest as part of the agricultural business. also weakness in the specialty plastics units next week dow dupont is set to split into three separate companies with dow inc. replacing dow dupont in the dow central average. all right. next, andrew going to do some ride sharing with the

co-founders of lyft ahead of the ipo. >> when we come back, ahead of the big ipo, a conversation in the car, mbeay a little squawk karaoke, with the co-founders of lyft you've worked hard to grow your wealth. make sure you're working with a wealth manager who can grow with you. cfa charterholders have the investment expertise to unlock opportunities other advisors might not see. learn what a cfa charterholdr can do for you at therightquestion.org

i can customize each line for soeach family member?e yup. and since it comes with your internet, you can switch wireless carriers, and save hundreds of dollars a year. are you pullin' my leg? nope. you sure you're not pullin' my leg? i think it's your dog. oh it's him. good call. get the data options you need, and still save hundreds of dollars. do you guys sell other dogs? now that's simple, easy, awesome. customize each line by paying for data by the gig or get unlimited. and now get $250 back when you buy a new samsung galaxy. click, call, or visit a store today. welcome back to "squawk box" this morning we are now just steps away from where lyft is going to be bringing the nasdaq opening bell here in los angeles ahead of the big day i took a lyft with the

co-founders. i asked them about their experience during the road show. >> we've been going nonstop for the last two weeks we've had to raise a lot of money over the years so some of them are familiar faces. but then a whole new crop of public market investors. but it was fun >> so do you see this as, like, one milestone along the way? >> for us, this is a milestone on our mission our mission is to improve people's lives with the best transportation this was not the goal to go public, but it is an exciting milestone. >> did you like the road show experience >> it's a lot of fun it's intense and they pack every single minute but yeah, you have this adrenaline rush. it felt great kind of looking back at the end of the two weeks thinking, look, i think we really opened a lot of people's minds and helped them understand what we're building towards.

>> did you ever think this was going to happen? >> this was the dream, but no, we didn't think it would happen. >> joining us right now is the president of the nasdaq stock exchange where lyft's ipo will start trading today. we want to bring him into the conversation nelson griggs is here. >> good morning. >> this is a unique experience we're at a lyft driver center. they're going to be ringing the bell here. how did you coordinate that? >> lyft said here's what we'd like to do at nasdaq we have this attitude of your ipo your way the team got together very collaboratively and we pulled off an amazing setup here. >> let's talk about pricing. this has outpriced expectations already. over $20 billion in terms of total valuation. $2.34 billion in terms of what they're raising. what does this say about where you think the market is? and do you look at a price like that and say, this is great.

there's excitement or does it make you nervous at all? >> i think it's great there's excitement this is a unique company that's got a lot of, obviously, visibility around it and there's a great investor reception. i think that brings more investors into the market as well there's also other ipos. >> how critical is the success of this ipo for you and the companies that come after it i'm thinking pinterest and uber and zoom >> a barometer for the marketplace is how do previous ipos do? lyft is unique i wouldn't put the whole weight of the market on lyft, but certainly if they have a good reception which i feel they will, the market treats them well after the market. >> so it's the age old question, joe and becky were talking about it an hour ago you know, in terms of pricing to perfection, what is perfection meaning, do you want investors to make some money on a day like today. not just today but over the next several weeks if not months if

not years. and you want the company to raise as much as humanly possible >> i think it's a great question it's an art not a science. you want investors to get rewarded for them coming into the company. and what that does is companies raise capital at least six or seven times their life cycle that gives them more reception when they go back again to raise further money. it's good to give something to the investors. >> what does this say, though, about -- in terms of not just where the market is but we now have a number of big companies that are not making money. these are companies that are unprofitable and how investors, how my mother who might be watching this this morning, saying should i buy the lyft ipo what's the answer? >> the u.s. is unique. we're fortunate to have an investor base that pays for future growth. that's where we have these amazing technology companies if you have the right long-term perspective, believe in the grand vision of the company, what they're trying to do. then i think you have to strongly consider it

but it's company by company, person by person time horizons play a big role. >> complicated question for the nasdaq you guys have to compete with the new york stock exchange as you might know as you know. for these ipos >> yeah. >> and so when you think about -- if you get a lyft, do you say to yourself, if i get lyft, i can't get uber or if i get so-and-so, i can't get -- how does that work? >> we look at every opportunity as a unique one to run that business we've been on a historic run in terms of win rates and larger deals coming to nasdaq no, we don't -- with the company looking that way they might. but every company tries to win the business >> in terms of what you've seen, these guys have been on the road show there have been a number of these. have you looked at the math in terms of how much capital is out there to put to work and how much the market can take this? >> we have

and i wouldn't want to put any fear in the market but there is some concerns that other stocks that are public can take problems off the table. it's hard to do an exact science. there's plenty of pouder in the space -- >> what do you think the total amount of -- i'm sure you've looked at this this is a big issue. as investors are looking at this, they're going to say, okay, we can do lyft, uber, this one. but actually once we get here, there's -- we're going to run out of money >> when you look at the billions and billions of capital out there, trillions, right? even though the ipo market is big, it's a pretty small portion compared to the overall public market space we don't feel it's a big concern. >> last question where are we in the cycle? because historically people would look at a moment like this and say, is this 1999? some people might say -- by the way, people thought in 2012 that the market was getting topee

because there was a sprint or run there. >> i'm traveling a tremendous amount now we have a huge backlog right now. it will be very strong as long as the deal is performed going out through the fall we're already talking to companies preparing that i think there's a concern that 2020 with an election year coming up could get choppier so there's definitely a momentum right now. the deals are performing well. >> how did you get here this morning? >> lyft. >> and do you know how to get here we're in a crazy place >> it's a unique space, but they're an amazing service >> just wanted to make sure you dropped the pin in the right place. nelson, thank you for being with us back to becky in new york. >> thank you we are waiting for your big interview coming up in a bit when we break down with the ipo

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liftoff. the ride hailing disrupter prices its ipo at the high end of expectation ahead of today's public debut >> this hour, a first on cnbc interview with the company's co-founders john zimmer and logan green. >> are we there yet? >> are we there yet? >> let's take a ride instant reaction and analysis ahead of lyft's first trade. the hottest new stock on the street this year it's all coming up on the final hour of "squawk box. ♪ live from the most powerful city in the world, new york, this is "squawk box.

>> good morning. welcome back to "squawk box" here on cnbc we are live from the nasdaq market site in times square. >> we are. >> i'm becky quick along with joe kernen >> if he's here, santoli is here, he should be on too. >> mike santoli's here can we zoom out? >> you don't need an agent i'm here for you it's here. it's early you've been here all week. >> no percentage though. >> no, no. probably not >> negative percentage also with us this morning, andrew ross sorkin he's in los angeles for a big interview this hour. he's going to be joined by lyft co-founders john zimmer and logan green. it's an exciting time to have them here. >> good morning. big questions tr them this morning as they get ready for what will be the biggest ipo of the year the beginning of a parade of unicorns they're calling them decacorns now. we will talk to them in 20 minutes about where this is all

headed and hopefully answer so many questions that investors have this morning ahead of the ipo. >> you guys were crammed into an explorer yesterday, weren't you? >> you know, kayla tausche put on twitter, she said you needed to get an xl but that was a big car i'm looking at the producers, it was -- we were in a ford explorer, right? yeah that was a big car but three big guys, you know, across -- >> i have one. >> the new one >> i have one, but you needed like a tahoe to fit you three in there. >> i felt bad for john he had the middle seat >> i'm thinking about being a lyft driver. >> really? i can't wait to review >> thinking about what it's like in l.a. to be uber or lyft you need, like -- i mean, you need to be a calm person out there. i was just thinking about that >> we had a great driver yesterday. i just want to shoutout. i don't know if you got to see him on the air yet but mel was our driver a guy named mel who was hysterical hopefully we can show you some

of that interview. there's mel. mel was -- he took care of us yesterday. >> did you sing karaoke at some point? >> i tried i wanted them to turn the radio on there was a whole thing. john -- hopefully john will bring his phone and we will play his ring tone. that hopefully will -- you'll understand it. >> i wonder if you work your way up to l.a. start in the midwest and then graduate l.a. is tough, sorkin. >> that was the impetus. we'll talk to these guys about it that was the impetus for the company. because logan green was sitting in traffic in l.a. thinking how do i get rid of these cars and so we'll talk about whether he's actually been able to get rid of those cars. >> see, i'm onto something here. >> great idea. just a little late andrew, thank you. first we have team coverage on the lyft ipo this hour. mike santoli is with us on set axios business editor dan primik

is here as well. but we're going to start with deirdre bosa with what to expect this morning >> reporter: good morning. well, lyft will start trading on the nasdaq today this is really the first time that public market investors are going to be able to play the now-massive ride sharing space and get a taste of the transportation as the service or task market. you know, in the leadup, we know the demand was strong. shares were oversubscribed early on and it priced at the top of its already boosted range. $72. the high end and that will give lyft an initial market cap of $20.5 billion. this is on a non-diluted basis to put that in perspective, that is on par with transportation companies. it is far bigger than other names like expedia with one important distinction, of course lyft is not profitable this is something we've been talking about in the weeks to the leadup of this ipo

i'm told on the road show a lot of the questions focus not just on the process, but the profitability. and i'm told the cfo has looked at the eventual expected high return whether the public markets are going to be as patient as private investors. back over to you >> thanks, deirdre let's bring in dan and mike. dan, i'll start with you i really want you to be -- i'm going to ask you to look ahead i'm going to pretend that you're -- oh, i think she's gone what was she call me for your free reading. >> the psychic >> miss cleo, i believe. tell me three years from now whether we look back on this and say, wow everyone though it popped on the first day, i wish i had bought

it or we're in a unicorn loving phase right now. what do you really think >> you know, we may be at a market top we may not be. but i don't think the fact that lyft and then uber and slack, et cetera, going public is a reflection of it they wouldn't be going public today. they would have gone public six months ago so they could have gotten out of the stock. there's obviously provisions they can't sell yet. >> but if it's not profitable, does it matter >> it won't be >> yeah. that's what i mean it won't be. >> you knew it was amazon, right? it didn't matter because it just keeps growing and growing and growing. revenue keeps going up sooner or later, you monetize it is that the same thing here? >> it is the argument they make and it's the argument amazon used to make and a lot of these high growth tech companies make. if we stop investing in growth today, we could be profitable

and flip it. lyft says that uber says that the tricky part for lyft is that it's not investing in the same way. it doesn't have international expansion or at least that's not really the goal. i think lyft is going to have a harder argument to make. in terms of growth, in the u.s. it's pretty much saturated >> those all sound like caveats to me. why is it worth $24 billion then >> it comes to -- look, we've had this odd situation not just that the companies remain private for so long but this huge and fast growing part of the economy, the way people get investors. even on a straight basis, if you own autostocks maybe you want to hedge. so i don't know that there's an answer to the question of how long the public market is going to allow them to invest and never have a side to profit. >> by coming so late in the

game, is it more likely that the retail investor who buys today is more likely to get -- be the one left holding the bag >> you know, i don't know if it's more likely but i do think that you have a better window on exactly what this business is, right? literally the -- we did have a couple analysts that came out before the ipo with the rating on lyft. and literally the guy -- there's a line in there that says we do not know if lyft can become profitable while paying its drivers. >> i think they say that in their filing too >> so essentially, the business model as it exists right now is not what you're hoping to buy. >> internally at cnbc, we can't even decide what the proper valuation is there's two valuations floating out there. if you can't come within 20% on

the open, how can any retail investors? >> you can't necessarily come up with the financial answer on that it's not a right or wrong question it's are you counting just the share that lyft says has been sold out that exist in the world or do you have to dilute that for employee options other factors. which i think, by the way, once it's public, once they report earnings, once they get a fully diluted share count, we'll settle towards that number >> on a day like today, it's important to consider all of what we know have been promised to people down the road just to say, look. this is not -- you know, you have to know these other shares exist. it's going to be easier to track. >> that's one element of buying a comparatively mature start-up if you want to call it that. which has lots of employees, has been around for several years and therefore you have that bit of an overhang >> so dan, what should we use to measure the stock price against, like, a year from now or two

years? >> well, in a year from now -- >> right now do we use price of revenue, coverage where they are, penetration, per ride. is there anything -- every tech company has a different way of counting how should we do it with lyft. >> you're going to hate my answer to this i think it's kwaqualitative. this is the first time you can get into this market i think there is a fear of missing out. there's a gut feel to this people aren't buying lyft because they see that profitability in four years. they're doing it because they want to own lyft and be in this. one other thing i wanted to pick up what michael said this idea that what people is investing in right now isn't necessarily this model with human drivers. the only problem with that is right now with human drivers we have a duopoly in the u.s. with

uber and lift. if you get to autonomous vehicles, that can be much more profitable what lit and uber have right now, they could lose a lot of that >> nast true but i'm sure they would say but we have the app on "x" number of phones and touch points with customers. maybe that's a heads start >> yeah or one of them would just buy them. i thought google might take lyft out last night or on wednesday obviously it didn't happen >> you don't have to say fear of missing out. there's a term called fomo that a lot of us tech savvy people, we just put the -- you might want to try that some time i've seen that >> we'll talk about that when you're my lyft driver. i'm looking forward to that. >> all right thank you. >> how many stars would you be rated? >> exactly don't you see fomo >> lol >> yeah, yeah. fwiw all those things rtlfmao. i think i just cursed with that

one. thank you. mike is staying with us. when we come back, the co-founders of lyft on the growth in the ride sharing industry and cut throat competition. that interview is coming up in moments. stay tuned you're watching "squawk box" right here on cnbc ♪ just hold on, i'm comin' ♪ hold on, i'm comin' ♪ hold on ♪ don't you worry, i'm comin' ♪ here i come

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welcome back to "squawk box," everybody. the futures have been trading higher right now dow futures indicated up 110 points. s&p 500 up by 12 coming up, lyft co-founders john zimmer and logan green join us ahead of the ride hailing company's first day of trading >> it's going to be interesting af that's all i'm going to say. >> and it is firsteron he "squawk. stay with us we'll be back after a quick break. so, you'll take our clubs straight to the course

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coming up on "squawk box" this morning, the big interview of the day ahead odd the ipo of lyft the largest ipo of the year so far. the co-founders of lyft, they'll be back with me in just a moment each day our planet awakens with signs of opportunity. but with opportunity comes risk. and to manage this risk, the world turns to cme group. we help farmers lock in future prices, banks manage interest rate changes and airlines hedge fuel costs. all so they can manage their risks and move forward. it's simply a matter of following the signs. they all lead here. cme group - how the world advances.

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welcome back to "squawk box" this morning right here on cnbc. lyft set for its public debut today on the nasdaq. joining us right now is john zimmer, the co-founder and president of lyft. and logan green, the co-founder and ceo of lyft. you started this company in 2007 you didn't think this was going to happen when you started >> this has surpassed all of our expectations >> did you -- i mean, i've known you now for a long time and i

remember we used to have conversations -- there was a moment i don't know if you remember back when it was uber and lyft and everyone said winner takes all only one company can win this thing. you said it's more like verizon/at&t you remember that? >> absolutely. it's been a wild ride. >> we've talked a lot about and we've shown a lot of the tape from our almost carpool karaoke thing. we needed an xl or something wider for that conversation. >> it was a little tight. >> but let's have a conversation now almost the kind of questions, i think, that were probably asked to you during the road show about the business because there are a lot of people that have not had an opportunity to hear from you on this thinking do i want to get in on this, what's going on with this explain this this is a company that's had enormous growth but also enormous losses at the same time talk to us about how this company gets to profitability. >> yeah. we're going after a $1.2 trillion market.

consumers spend $1.2 trillion in the u.s. alone on consumer transportation and we're investing aggressively in that market so we think this is going to be potentially the largest market that ever shifts from an ownership model to a service model. so not only are we investing in ride sharing, we're investing in bikes and scooters, we're investing in autonomous vehicles but if you dig into the numbers, every year it's getting better we think the returns are going to be incredible >> just to put a fine point on it, if you stopped investing in some of the newer forms of transportation, let's say scooters and bikes or autonomous vehicles, for example. not so clear the company becomes profitable either. >> we're very confident in the long-term profitability of this model. and again, as logan said, we're making a decision that is allowing our shareholders to go

after the long-term ability. the current model works very well the economics are good and again, we would be not doing the right thing if we were focused on the next one or two years. we're focused on the next three, four, five >> just speak to the current model and we'll get to -- i want to talk about the future as well but under the current model, it appears like on every ride -- every ride is not a profitable ride, am i wrong >> that's not correct. >> okay. >> and we're a contribution positive in every single city. we went from 23% margin in 2016 up to 46% contribution margin in 2018 and think long-term will be at a 70% kwix. >> if you're my mother and you're watching this right now, you're thinking do i want to own lyft what is the time horizon with

which you would tell her this could be a profitable company? >> i wouldn't be allowed to give forward-looking guidance, but i would tell your mother that if you believe in the idea that americans spending $9,000 every year owning and operating a car and using it 5% of the time, if you don't -- if you think we can make that more efficient and save people thousands and thousands of dollars by doing all your transportation services in one place, then this is the right company for you. >> you priced higher than expected yesterday some people are calling it surge pricing. when you think about the price, what are the comps or metrics you would look and say this makes sense? you can compare it to "x." because we were talking earlier today, this is going to be more valuable than the airline business >> looking at revenue multiples

over the next few years. and that's giving them confidence in the long-term value of the and >> and when i think about the company long-term, there was an expectation. i would say even as not far back -- 9 or 12 months ago that autonomous vehicles, full-on autonomy was going to be here in two years if not sooner. hour is it changing what's coming >> i think people overestimate the near term impact and underestimate the long-term impact so we don't think that there's going to be an autonomous vehicle in the next few years that can do all of rides it's not going to just drop down and sort of take over. we do think a few years out and we don't have, you know, a magic number but a few years out, you'll probably start to see first generation autonomous vehicles that can do a small percentage of rides >> but this is even a couple

years out. >> absolutely. >> how does that change the unit economics? >> the unit economics, you know, will shift where we would have 100% take on those rides but the promise is that the price of the ride would come down a lot and that's part of the excitement >> i actually go back to what we talked about with at&t and verizon. when you bring in something like autonomous, you don't need to put it everywhere. for autonomous will be for fixed routes, under a certain miles an hour in good weather we believe that the driver community is going to continue to grow because there will always be use cases that will be better served by people in cars. >> let me ask you this dan was on earlier one of the points he made was in an autonomous world if we get there, instead of it just being an at&t/verizon, an uber and a

lyft, it could open up the competitive landscape further so you're playing against waymo, playing against car companies that have flefleets >> what's important is for us to be successful we have to be great at technology including software you named several software companies. and we have to be great at physical operations. we're here today in our driver service center which we're building out across the country. it's not enough to just have software you need to combine that with the real world that's something we believe we can do better than anyone else. >> what are you going to use the proceeds of this ipo for >> to invest in that long-term opportunity, to add new modes, build infrastructure for bikes and scooters, invest in r&d. not only for autonomous. actually, the majority of our r&d is being spent on our existing business to push down on costs like insurance. so we are investing for the next few years. >> for the model to work

meaningfully, how much has to be about pulling people and the cars together. meaning, relative to me sitting in the back of one car individually versus me and three or four other people >> yeah, that's not needed -- >> because that was the vision and dream originally for you >> yeah. that's a big part. so a big part of the inspiration for me was growing up in l.a. being stuck in traffic seeing one person per car thinking, we can make this more efficient you know, and at any given time there's got to be, you know, dozens if not hundreds on the road sitting there going to the same place so let's put them in the same car. that was one of the, you know, key innovations that we led with in the market. and we're close to rolling out a new product called shared saver. where we are promising not to flex the price so no surge pricing. we'll always give you a flat price. and instead we'll flex how long you wait and we think the efficiency will be really impressive >> how do you think about your

company versus uber? i think of it as the pure play transport. that's sort of how i've been describing it. but there are two players in this market. one is significantly bigger than the other. >> yeah. so, one, we've been and will always be focused on what we control and do people are choosing lyft we go from 20% to nearly 40% across the united states and yes, lyft is focused on consumer transportation, focused on north america, and focused on taking care of our drivers and passengers that's paying off. >> how much of this, by the way, you talk about north america the good news there is there's an opportunity eventually to go international. but where does that fit in the sort of list of priorities for you? >> we look at international as a great call option. anywhere where there's just a single player, we think there will be at least two scaled players in each international

market eventually. but every time we sort of weighed that trade off, we decided to go deeper in transportation in the u.s. you know, if you look at the entire ride sharing industry, it still makes up less than 1% of all miles traveled we're just scratching the surface of what we can do in the u.s. >> when you look at what uber has done internationally, is that something you say to yourself i wish i had done that? >> i think we're really happy with the focus that we've had. we're not, you know, needing to pull away from markets we're going at the right pace. we're going deep in the markets we're in that allows us to gain the share we've gained as logan said, it's a great call option down the road. >> one of the things in your filings is the idea that in this battle with uber which is an intense competition, you're spending a lot of money. and you spent a lot of money in the last six months in terms of marketing dollars to get people and discounting to get people in the cars

uber is doing the same how long does that battle last >> one thing to realize, in 2016 and prior, there was a need for us to get up to scale. scale in our business is a three-minute pickup time beyond that, what we have is 80% of our passengers are coming in organically. they're coming in because of the brand, because of the service, because of our driver community. and so it's not about a price, you know, battle between the two players anymore. it's about getting the best service, having the best software and real world operations >> i have to ask about this given the value back in 2014, travis kalanick was running uber tried to buy lyft. he confirmed that. can you tell us what he offered you? because i know back then, you didn't take the deal >> no, i don't think we can comment on that. >> you can't tell us what it was worth back then? i mean, i assume today you have to be very happy you didn't take the deal >> very happy. >> let's go to this which is about workers. we're here in the drivers center

right now. you're trying to do a lot for drivers. but there's also a larger debate in this country right now about the idea of contracted workers there's also shifting political winds in this country as well in terms of what's going on with labor, if you will >> yeah. >> what do you think is going to happen and how -- what could that do to your business if at some point along the way the political winds shift in such a way where they say to you, you know what? all these drivers, they actually have to become employees >> i think the important thing is even over the last year, the lyft platform created 1.5 million flexible jobs. and the majority 91% of lyft drivers are driving less than 20 hours. they have earned $10 k1$10 bill. why are they wanting this work the typical 9:00 to 5:00 is not getting them where they want to be they're using lyft as a

potential single parent that needs more flexibility in their job. and, you know, i think work in this country has been defined one way historically and there's a way people want to do it differently going forward. >> the other big semi-political question has to do with congestion pricing and what that ultimately does to the business. meaning if the price gets materially higher and in new york, i think $2 or $3 addition to every ride already, i see it even myself saying i might take the subway now >> we're big fans of congestion pricing. >> you are >> we are. you know, politicians sometimes say there's no silver bullet to solve traffic. there is and it's congestion pricing. we advocated and are very supportive of the congestion pricing program in new york. that's already gone into effect. i believe it's collectively raising about $400 million for the mta system and we think that's incredible i think, you know, our business is based on the roads.

and if the roads aren't functioning well, our business isn't functioning well it can contribute a ton of money to public transportation it also creates incentives for shared rides which we're really excited about. >> what do you say to those -- you know, the whole idea i think when you started this project company, really, was to get -- to actually create less traffic, not more there have been some studies and analysts out there that have suggested between uber and lyft, there's actually now more traffic that you've created more traffic in the cities. i'm looking at one study from bruce schaller that said it created an increase in driving on city streets. >> yeah. i mean, i think, again, lyft and our competition combined to be less than 1% of miles traveled in the united states that said, i think there are multiple effects of creating something new. and the investments we're making in shared rides. the push we're putting behind congestion pricing to solve the problem. we want as logan said, no

traffic. we intends to be part of that solution. >> bikes and scooters, what is next beyond that >> we're rolling out public transportation integration into the app. so we want lyft to be the first place you go to figure out which type of transportation you're going to take. we don't care if it's the bus ofr the train. and in fact, we love to connect you to whatever the best option is >> in terms of the value proposition margin for you on a bike or on a scooter i'm assuming much higher >> not today the economics of bikes and scooters today are early on. particularly the scooters have a short lifetime they haven't been hardened for their shares use case. >> becky back in new york has a

question >> i just want to ask you guys, when the lockup period expires, do you plan to sell some of your shares to lock in the money you maid or make sure you hold onto the shares as long as possible so vuk as much say in it what's your plan >> to be honest, we haven't thought too much about that. we're focused on the long-term execution. obviously we believe long-term in the value that we can create. and genuinely are focused on our mission which is to improve people's lives with the world's best transportation. >> related to that, let me ask you about governance because one of the controversies that's come up over the past couple months with this ipo but also with companies in the valley across the board is this idea you have super voting shares those shares give you a size of the company. and whether ultimately that's a good or bad thing. >> we spend a lot of time with our board and investors to put

together a thoughtful approach to governance. we've been making sure we have a diverse board. collectively, we really need to set the company up for this long-term opportunity and to create the type of durable growth we'w york >> yeah. thanks i think this would be for logan. given how you're investing so heavily and so many investors are basing the value of the company on this total addressable market, and you say it's all consumer transportation and that people who own a car, you know, pay thousands of dollars andonly use it 5% of the time i've often thought of that as, well, i'm counting the time i use my refrigerator only when the door's open. people have a car because it's an option to go somewhere. any time they like so just legitimately outside of urban areas, how much do you think services like yours will

displace car ownership >> we think almost every mile will take place on a transportation as a service network. today when you own a car, you're working with different companies to piece together this experience you go to a dealership to buy. you have a separate company, go to insurance separate company to service it you've got to register it, park it, tow it, clean it, fuel it, charge it. and at each step of the way, yun of these experiences are with each other we are quite confident that we can create a single better consumer experience and use technology and on the ground operations to create a better experience and we could use the scale of our network. last year over 30 million unique riders across the country use lyft it's almost 10% of the

population and we can use the scale of our business and that leverage to deliver better costs at a better experience that's the magic of service. right? we've saw this play out in the entertainment industry people used to buy cds and dvds. now they stream all their content. it's a better price point. >> by the way, you all have kids one of the reasons is because they have car seats and they have athletic equipment and all sorts of stuff in the back of the car. do you really think the car is going away >> one of the most important points is we don't need you to give up your car just like you have a phone and you run it on a network and you use that phone, it's your phone. same is true yeah, with kids, you can have your kids see in the back, equipment. we're not saying we need to take that away for you in order for the business to be successful. instead, if our negotiating power on behalf of our customers for fuel, for maintenance, for all these elements is much

higher than one person doing it themselves >> couple quick rapid fire questions. carl icahn is one of your investors. he i imagine may stay in the stock. are you worried about that >> no. >> it's been a good investment for him so far >> we've actually -- >> he's also an agitator. >> we've had a great relationship with carl icahn >> second question logan, you said in "the new york times" elon musk, mark zuckerberg, and jeff bezos are people you look up to, role models of yours. what about each? >> what about each you know, if you look at amazon, i think, you know, it's -- they were the first company ahead of the curve of creating a world class technology organization and getting their hands dirty with real world operations right? they run warehouses. they deliver packages. i think that's the formula that a lot more businesses are going to have to follow. and that's, you know, part of the mold we're building lyft in. i also love how customer focused amazon is.

i think that's just a critical recipe for any company to be really, really successful. >> second question because i mentioned elon musk. he said the public markets are just a terrible place to be these days that if you're trying to actually grow a business, why not just stay private? >> look, we're ready to be held accountable. we're excited. i think in our case, i think what we've seen in talking to investors that more people are maybe surprised to see the numbers that we're putting out and i think this is a great part of the process for us, this wasn't the goal this is a milestone along the way. but we feel like it helps us with additional access to capital. >> two other quick questions warren buffett said yesterday to becky, no reason to buy in on an ip o rks dpp you hear that news? >> didn't hear that. >> what would you tell warren? >> he's an incredible investor and everyone can have their own opinion. >> final two questions are completely selfish one is about tipping how much do you tip on the lyft app or do you pay in cash?

>> i tip on the lyft app depends on the ride. >> and do you get additional stars for tipping? i need to know that. >> no. it's separate. so the star rating happens before there's kind of any information about the tip. so it's completely unbiased to the tip. tip what you feel is appropriate to a ride. >> and finally, i said -- i teased it before you have a very specific ring tone on your phone that i thought the audience should hear on a day like today given what you do for a living. i don't know if you can play that near your microphone. can everybody hear that? do you remember this back in new york you know what that is? >> i do. >> of course >> hello >> nightrider. >> more specifically in your self-described selfish questions, we decided you're never going to tip again, are you? >> never tip again >> please tip your driver. >> that's not true i'm going to tip

>> and guys, you said it depends on the ride how much you tip so what's a good ride and what's a bad ride how much do you swing? >> i mean, it could be several dollars. i've had an amazing ride that had a really big tip it just depends on -- >> several dollars is not a really big tip >> yeah. 15% to 20% depending on the ride is the best way to think about it >> gentlemen, thank you. >> hey did john go to cornell? >> john is a cornellian. and a sigma pi guy we were in the same fraternity not at the same time then we met each other, i don't know, seven or ten years ago. >> but he's much younger and doing much better than you >> he is doing much better than -- yes. better looking, working better, all working out for him. >> but who's counting. >> but who's counting. good luck, gentlemen >> thank you >> appreciate it >> thank you for spending time with us this morning guys, back to you. >> andrew, thank you

thank you. >> yeah. no more tipping. never again. >> very interesting. >> that was the worst information to give him. that it doesn't matter on your stars. you know >> andrew tips his drivers i've seen him. he's very magnanimous. >> andrew, your response >> oh, he ran away already >> i'm being honest. andrew hasn't been around in awhile. >> why would you ask that question and i have to apologize publicly the other night i said to melissa welcome back i said joe did a wonderful job and it's great to have you back on the show. and joe took that as some affront. you know i love you, joe >> you said that -- >> just not as much as he loves melissa. >> you're right. >> guy a dami is here guy, would you buy in on this ipo? >> the conventional wisdom is you take a look on the day

my conventional wisdom might not be right people look at this. now analysts are talking about ipos, something never done before i think this will trade well and probably hold on now, if the market turns over, obviously things change. but i think you're going to be surprised by how well this does today. >> today, yeah, wouldn't surprise me if this, you know, trades up nicely and creates a little buzz around it. i think it's the kind of thing people are owning as, you know, a slice of the future. who knows if i'm wrong about how profitability this can be some day. it can get acquired some day in other words, you don't have to have it all sorted out at the beginning. i still think, though, that these total addressable market estimates, you have to kind of scrutinize them a little bit right? and you have to think how fast are we going to get there when every mile traveled will be serviced >> this won't be a sirius xm thing, will it >> where they have to cling to each other eventually to hope to

hold on at some point. >> like a natural monopoly >> it would make them profitable, probably but when you have a big competitor and each of these guys has gotten bigger as we get closer to the ipo making it much less likely either of them is going to get knocked out soon. >> even talking about sirius and xm, it is a network. what i mean by that is yes, they pay for the content. but once they pay for the conte content, every incremental user is no additional costing with right? >> if it's so -- if it's going to be so hard to ever have the margins to make any money -- >> go ahead and create a monopoly because you're going to get killed otherwise >> in mature markets, they're profitable i would say okay exactly how many rides is that and what is it in the market >> do we know the first autonomous car company is going to be uber we don't know that what if it's somebody else >> gm does have a stake in lyft.

>> probably the only -- >> i mean, gm's been grim death in the last five years in a stock market 4% from its all-time high. and to your point, even if it's not a $1.2 trillion addressable market, it's still huge. >> and they have, you know, a billion of revenue >> exactly >> i still like driving my car i don't like riding -- in general, i'd rather drive. i wonder if that -- i guess that'll go by the wayside. >> if you were my lyft driver, i'd force you to put on all in with chris hayes for the hour. it would be the best -- >> is that an msnbc show >> you know what that is >> i support all my colleagues >> people still own and ride horses, just not to get to work. most of them >> right >> you could be one of those people >> i'll let you have a ride in my car seven speeds 4 hurkss horse power >> baby you can drive my car >> it is a hobby and a passion

it's not -- >> i don't know. look, i think it's different if you live in a big city or if you're on the coast versus if you're in most of the rest of the country. living in another state, i like being able to drive here anyway, thank you very much. great to see both of you >> have fun with melissa tonight, adami coming up, jim cramer's reaction to our interview with lyft stay tuned you're watching "squawk box" on cnbc that's why we designed capital one cafes. you can get savings and checking accounts with no fees or minimums. and one of america's best savings rates. to top it off, you can open one from anywhere in 5 minutes. this isn't a typical bank. this is banking reimagined. what's in your wallet?

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we're going after a $1.2 trillion market. consumers spend $1.2 trillion every year in the u.s. alone on consumer transportation. and we're investing aggressively in that market >> if you believe in the idea that americans spending $9,000, american households spending $9,000 every year, owning and operating a car and using it 5% of the time, if you don't -- if you think we can make that more efficient, and save people thousands and thousands of dollars by doing all your transportation services in one place, then this is the right company for you. >> that was lyft co-founders, logan green and john zimmezimme moments ago. let's get down to the new york stock exchange jim cramer joins us now. what would have to happen, jim, for you to put lyft in your charitable trust >> look, i think if it is below 75, it is actually okay. this is tremendous growth.

i don't want to see the profitability as much as i want to see the growth as long as they have the great balance sheet. i'm pretty sanguine with these guys i think it is a good story really do. if you want to have a -- look, if you want to sell, say, a workday, if you want to sell a service now, and buy this, it makes sense. i think that you'll make some money. i think people will also love brand names and a lot of people who have ridden in this, love it i think these two gentlemen acquitted themselves quite ell it is a good stock i think that if you can get it -- i don't think you get it below 75 but it would be great. >> you like lyft at $24 billion or uber at $120 billion? >> uber has a lot of different fantastic businesses and i think that uber has got tremendous ceo, the answer is that i think that if i can get uber at that price, it would be fine i'm afraid that uber will be like facebook, a lot of market orders by retail, come in and botch it and the brokers won't be able to handle the deal well.

it is almost impossible, it is a one in a million kind of deal. so this one is going to be more orderly. but that is going to be ultimately a great stock to own. >> we're trading up again today, jim. is this china, again, in the -- china did well overnight also. is this a trade stock? >> look, i think that there are even new negatives that have come up. fentanyl, you know the president, when he was in south america, asked xi to stop with the fentanyl coming into our country. and there has been no cessation of thefentanyl, of the bogus fentanyl the chinese have been been sending us. no one talks about it. but this is the kind of thing that the president is steamed about. the president is not happy about fentanyl why doesn't somebody ask her about tha about that >> if you're really -- >> joe, you and i know this. >> if you're a -- it is not nice

to do that your trading partner. >> president asked xi a favor, stop sending the fentanyl. i hear everything is going great with the talks we aren't willing -- we're not going to give up on the tariffs. the tariffs stay you think the chinese will go for that i don't know. >> all right, jim -- >> stop with the fentanyl. >> 5 1/2 minutes, i think, less. we'll see you in a few make sure -- >> thank you, thank you for a chance to talk about fentanyl. because that's important. >> okay. good and actually, on monday, on "squawk box," among our big guests,former u.s. attorney preet bharara. stay tuned quk x"ilbeig bk.

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welcome back to "squawk box. we're getting ready for lyft's first day of trading as a public company. let's check in with andrew again in los angeles what do you think after talking to the two co-founders >> well, it is funny, i was on twitter after the interview, just to try to get a little reaction from the public who has been watching this i would say it's not mixed, better than mixed for them i think you will see a pop question is are we talking about $70, $80, much more?

the hardest part for the public is this is a company we asked this in a couple of ways in terms of getting to profitability and what that looks like . i don't think we know the answer yet. i think this is much more of a larger long-term bet on if you believe in car sharing if you believe it is going to change the dynamic around driving, it is a great bet if not you might be on the other side of the bet. >> the other thing we don't know is what the investors' patience will be in terms of that in amazon, they were very patient saying it is okay, we don't expect a profit now. we want world domination, get bigger and bigger. maybe lyft has the same benefit that gets to go along with that. >> it is interesting because this has been a private company for a very long time people talk about this company starting in 2012, but in reality, it started as a company called zim ride init had some t people talk about this as mature startups so we will see what kind of patience and honeymoon investors

ultimately give lyft but i do imagine this morning it will be a big one for them. >> andrew, we miss you it has been way too long see you back here on monday on set with us. >> see you on monday. >> you know what today is? >> what is it? >> it's friday i'm in love. can't play the music i said i would sing it for you >> you know what the 27th was? i didn't hear from you it was national joe day. 27th i didn't hear from you, sorkin i don't think there is a national andrew day. >> there is a st. andrew. >> there is a st. andrew. >> there you go. >> you'll be here at -- >> i'll see you. >> 5 to 6:00 on monday we'll see you? >> 5 to 6:00 on monday, see you then. >> join us for andrew's return "squawk on the street" is next ♪ you know your love keeps on lifting ♪ ♪ higher higher and higher ♪ a good morning for the

initial public offering market lyft going public today. and we have all the bases covered. we'll bring you, of course, the opening as well. welcome to the -- welcome to "squawk on the street" and our special coverage of lyft's ipo i'm david faber. he's jim cramer. we are here at the new york stock exchange carl continues to have the week off. let's give you a look at futures as we also g